Global Supply Chain February 2019 Issue

February 2019 Issue 56

ENHANCING THE BUSINESS OF LOGISTICS

TSSC

The multi-faceted conglomerate is quite literally driving the cold chain fischer fixation Grasping markets

Wilo

Pumping up the ante

UD Trucks

On the fast track

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                                                                         ’                                

     

Dodging the doldrums SIGNATURE MEDIA FZ LLE P. O. Box 49784, Dubai, UAE Tel: 04 3978847/3795678 Email: info@signaturemediame.com Exclusive Sales Agent Signature Media LLC P.O. Box 49784, Dubai, UAE Publisher: Jason Verhoven jason@signaturemediame.com Editor: Malcolm Dias malcolm@signaturemediame.com Art Director: B Raveendran ravi@signaturemediame.com Production Manager: Roy Varghese roy@signaturemediame.com

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There is no denying the fact that both the regional and global logistics and supply chain industry is facing severe headwinds from several quarters. Trade and commerce and its natural appendage, exports and imports, is under siege from recessionary economic downward drifts, unforeseen tailspins, governments, politics, economics, regulatory authorities and a host of special interest groups.

These are concerns that have adversely affected the logistics landscape. Logistics, which encompasses the business of transportation and distribution, is under pressure globally from the vicissitudes of these and several other factors. The challenge then is to buck this trend and to legislate or to take initiatives that will stimulate and revive the industry.

Thankfully, the GCC countries have their eye on the ball and have initiated proposals, incentives and sops that are intended to resuscitate and hopefully bring momentum to the industry. Every country in the GCC has announced well publicised grand, long-term ‘visionary plans’ to bring the energy back into their economies. These have served to lessen the downward spiral and revive the industry with encouraging outcomes.

This has been ably demonstrated, albeit in a microcosm form, in this edition of Global Supply Chain. We have examples of TSSC, a home spun company and the Middle East subsidiaries of German companies fischer and Wilo as evidence of surge in the air. Then there is DP World, the large state-owned international ports operator, and separately SOHAR Port and Freezone, the premier entreport in the Sultanate of Oman, both of whom have announced encouraging performance in 2018.

There is optimism in the air and more heartening news ahead and we fully intend to cover these as they come into the public domain.

We hope you will enjoy reading our regular repertoire of news, views and expert input. One of our long-time contributors Tom Craig, President, LTD Management, USA, makes the case for lean logistics and advocates the trimming of the proverbial ‘systemic fat’ to comply with the rigours and realities of the present day conditions.

Enjoy the read!

Malcolm Dias Editor malcolm@signaturemediame.com

FEBRUARY 2019 3

February 2019 Issue 56

ENHANCING THE BUSINESS OF LOGISTICS

36 06 NEWS 20 Kingdom of Bahrain – A Country Report The Kingdom of Bahrain, the commercial and geographical centre in the Arabian Gulf, is pursuing a reformist economic agenda and has unfurled ambitious plans for growth.

24 Centre Point Logistics Our serial contributor Brian Cartwright, Managing Director, Top Management Resources Group, recounts his tête-à-tête with Torben Eskelund, CEO, Centre Point Logistics.

27 fischer fixation At the recent annual 2019 media meet, fischer officials were on hand to narrate their grasp of Middle East markets and growth trajectory.

4 FEBRUARY 2019

31 KIZAD-Roadbot The first US$ 615mn tyre manufacturing facility of its kind in the Middle East is being established in Abu Dhabi’s KIZAD in partnership with Chinese investors.

32 Wilo Pumps The German manufacturer of premium pumps and pump systems recently inaugurated the brand-new 8000sqm office complex in Dubai’s JAFZA.

36 TSSC Long-established and multi-faceted TSSC, a Harwal Group company, has demonstrated a year-on-year exemplary track record as it continues to notch successes.

40 SkyCargo-DuPont Partnership Emirates SkyCargo and DuPont celebrate a decade of a fruitful partnership.

41 DHL Global Competence Centre DHL Global Forwarding unveils its first Global Competence Centre for Humanitarian Logistics in Dubai

42 LogiPoint Saudi Arabia As the Kingdom of Saudi Arabia’s premier logistics services provider commemorates it 20th Anniversary, it braces for ambitious future growth ahead.

44 Breakbulk Middle East 2019 The 4th annual edition Breakbulk Middle East 2019 has the participation and support of multiple leading regional maritime entities.

46 UD Trucks The Japanese truck manufacturer is unstoppable as it trundles along in growth territories across multiple geographies in the MEENA region.

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network in 220 countries and territories. As a result of increasing e-commerce, markets in Europe, the US and Asia are registering continuous economic growth and represent significant potential for cross-border express shipping in the consumer area.

In addition, these markets continue to form the foundation for B2B-driven logistics services for industry sectors such as automotive, life sciences and healthcare, banking, retail and technology.

“DHL Express will use all existing channels to transform every opportunity into top-line growth. We are modernizing our regional and intercontinental air fleet, we will continue to invest in our international infrastructure and innovative

The newly appointed CEO of DHL Express, John Pearson, is expecting continued positive developments for the global express market and the company, thanks to booming cross-border e-commerce, digitalisation and its leading position in all industry verticals.

He is also a member of the Board.

The appointment is effective January 1, 2019, Pearson was instrumental for DHL Express’ decade long success story and expects growth figures to continue in 2019 and beyond for the Express division of the Group. Pearson took over from Ken Allen who became CEO of the newly established DHL eCommerce Solutions Division.

“We are pleased to have John Pearson join our Corporate Board,”remarked Frank

DHL Express appoints new CEO Appel, CEO Deutsche Post DHL Group.

“John’s extensive operational knowledge and business experience within the division will ensure a continuation of the successful

growth path of DHL Express in the years to come,”he added. DHL Express aims to capitalize on developments in global trade in the coming years with its unparalleled

Etihad Cargo awarded IATA’s certification for pharmaceutical logistics Etihad Cargo has set a notable benchmark in the region by becoming the Middle East’s first carrier to be awarded IATA’s Centre of Excellence for Independent Validators (CEIV) certification in Pharmaceutical Logistics. The airline is one of only 16 carriers to hold this important certification worldwide.

The certifications cover both the airline operations of Etihad Cargo, as well as cargo handling and warehousing at its hub in Abu Dhabi International Airport, underlining Etihad’s excellence in maintaining product integrity and managing high-value, temperature-sensitive shipments for the pharmaceuticals and life sciences industries.

“Etihad Cargo is honoured to become the region’s first

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carrier to be awarded IATA’s CEIV designation for Pharma.

Since we launched our refreshed strategy in early 2018, a lot of focus has gone towards enhancing our premium product verticals and offering the highest quality and reliability standards to our customers,”commented Abdulla Mohamed Shadid, Managing Director Cargo and Logistics, Etihad Aviation Group.

Etihad’s cargo handling subsidiary Etihad Airport Services has also been awarded the CEIV Pharma certification. This dual certification reaffirms Etihad’s ability to offer customers a seamless end-to-end temperaturecontrolled solution and reinforces Abu Dhabi’s positioning as a key global logistics centre.

Etihad has undergone a

technologies, while ensuring we maintain our excellent level of customer experience and satisfaction,”commented Pearson on his appointment to the top position.

major enhancement program to its facilities, systems and processes to meet the stringent standards that CEIV Pharma demands, which combines IATA’s Temperature Control Regulations, GDP best practices, and other international benchmarks.

These enhancements include the planned use of cool dollies at Abu Dhabi International Airport, thermal blankets both in Abu Dhabi and at key

stations globally, and a tie up with additional active container suppliers to expand the options of temperature-controlled containers across its global network, among other initiatives.

According to Shadid, Etihad has also recently launched two new products, FlightValet and FreshForward, both of which have seen remarkable successes, and in October the carrier completed its digital migration to the leading iCargo technology platform.

Tristar presented with India’s prestigious

‘Golden Peacock Global Award’

Dubai-headquartered liquid logistics leader Tristar was named winner of the ‘Golden Peacock Global Award for Corporate Social Responsibility’ by the Institute of Directors (IoD), of the New Delhi, India-based based Golden Peacock Awards Secretariat.

Tristar Group CEO Eugene Mayne received the prestigious award from Prakash Mehta, State Cabinet Minister for Housing Department, Government of Maharashtra, and officers of the IoD at a recent ceremony in Mumbai, the country’s commercial capital.

Saudia Cargo sponsors the Saudi International Golf Tournament.

Saudi Airlines Cargo has sponsored the Saudi International Golf Tournament as an official logistics partner held in Saudi Arabia for the first time with the participation of world-class golfers, taking place in King Abdullah Economic City (KEAC) at the Royal Greens Golf & Country Club, from 31 January to 3 February, Omar Talal Hariri Chief Executive Officer stated.

The anticipated golf tournament is the first European Tour golf event to be held in the Kingdom with the participation of elite global golf champions such as the world number one Justin Rose, world number two Brooks Koepka, world number three Dustin Johnson and the world number five Bryson Dechambeau,

Also joining them the fourtime major champion and the 71-time worldwide winner, Ernie Els, who will make his second trip to King Abdullah Economic City located on the Kingdom’s West coast, after he was a part of the grand opening of the Royal Greens Golf Club in April 2018.

It should be noted that Saudia Cargo always support national, cultural and sports events in the kingdom, lately the firm carried the equipment for the 33rd Edition National Festival for Heritage and Culture (Janadriyah 33) held north if the capital Riyadh and it carried the cars, spares, and gadgets of the FIA Formula E Championship that occurred in the 2018 Saudia Ad Diriyah E-Prix festival, and the carrier also transported the

Tristar’s CSR thrust is to give back to communities where it operates. In Africa, one major project is aligned with UN Sustainable Development Goals (SDG) Number 4 on ‘Quality Education’. The company has been supporting and funding the development of local schools and facilities in South Sudan and Kenya.

The Golden Peacock Awards are now recognised as the hallmark of corporate excellence worldwide, because of their independence, integrity, transparency.

Furthermore, thorough evaluation of the application provides opportunity for selfassessment and helps companies accelerate their performance and assess competition.

The Tristar Goup has a CSR Steering Committee which is led by Mayne and consists of the Group Chief Administrative Officer and other department heads, managers and advisers with clearly defined responsibilities to fulfill and ensure successful completion of CSR activities across the global network in the Middle East, Africa, Asia, the Pacific and Central America.

WWE championship apparatus to Jeddah.

The approximately 200sqkm newly constructed King Abdullah Economic City (KAEC) is the largest privately-funded

new city in the world. KAEC comprises King Abdullah Port, the Coastal Communities residential districts, the Haramain Railway district and the Industrial Valley.

FEBRUARY 2019 7

Dubai South construction projects in high gear in run up to EXPO 2020

Recognised as the UAE’s flagship urban development, Dubai South builds on the vision of HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai and is designed to support the diverse needs of a multitude of businesses, industries, investments current and future residents.

Real Estate projects that are currently being developed within Dubai South Residential City including the Pulse – a

successful ‘freehold’, mixed-use community which is set for handover mid 2019 onwards.

Featuring townhouses, apartments, shopping destinations and urban design landscape, the Pulse offers a unique lifestyle and is catered to mid-market audience.

The Pulse, constituting a residential community offers more than 1,200 homes for the mid-market segment. The Pulse comprises of the Pulse Residence, Parks, Plaza, Icon, Boulevard Apartments and the

Panalpina confirms DSV made an unsolicited acquisition bid Switzerland-based global 3PL and airfreight forwarded Panalpina in a recent press communiqué confirmed that it had received an unsolicited, non-binding proposal from Hedehusene, Denmarkbased global 3PL DSV, to acquire the company for an offer of approximately US$ 4.0 billion in a combination of cash and DSV shares.

It added that according to its fiduciary duties, the Board of Directors of Panalpina is reviewing the proposal in conjunction with its professional advisers.

‘A combination of DSV and Panalpina would create a leading

8 FEBRUARY 2019

global transport and logistics company with significant growth opportunities and potential for value creation,’ DSV said in a statement.

‘A combination presents a unique opportunity for both companies and their respective stakeholders including shareholders, employees, customers and suppliers,’ the statement continued.

DSV’s interest in acquiring Panalpina comes around three months after it made a US$ 1.5billion bid for CEVA Logistics.

DSV has been active on the M&A trail in the past, having acquired US-based UTi Wordwide in October 2015.

Pulse Townhouses. The community also provides ample parking spaces for both residents and visitors, club houses with gyms, pools, children playgrounds and open plazas for everyone.

Sakany is a purpose-built, mixed-use community comprises of three developments.

Sakany Staff Accommodation, Sakany One and Sakany Square, together will house approximately 50,000 residents. Sakany will accommodate more than 17,000 residents in 22 buildings by 2020.

“Dubai South is drawing inspiration from the insights we gained from our experiences in Dubai and worldwide and taking it to the next level, in terms of education, medical care, and offering a truly convenient communities, to contribute to the vision of happy cities,”commented Mohammed Al Awadhi, CEO, Dubai South Properties.

“The world expo next year will undoubtedly underscore the Emirate’s appeal as a promising FDI destination and will significantly boost demand in all key sectors including real estate.

Dubai South remains poised to meet these demands,”remarked Khalifa Suhail Al Zaffin, Executive Chairman, Dubai Aviation City Corporation and Dubai South.

First Etihad Airways flight takes off using fuel derived from plants The Sustainable Bio-energy Research Consortium (SBRC), a non-profit entity established by Masdar Institute part of Khalifa University of Science and Technology, recently announced the world’s first commercial flight using locally produced sustainable fuel on an Etihad Airways Boeing 787 powered by GE engines.

The flight from Abu Dhabi to Amsterdam marked a major milestone in the development of a clean, alternative aviation fuel to reduce carbon emissions.

The SBRC partners have been working together to prove the concept of a comprehensive value chain that is centered on the Seawater Energy and Agriculture System (SEAS). This is a synergistic industrial platform that supports the aviation sector, the oil and gas industry, food production and the creation of a new agricultural alternative in the UAE. “Productive cross-disciplinary publicprivate partnerships are crucial to fuelling research and development efforts and creating game-changing innovations that enable a more sustainable future,” commented HE Dr. Thani Bin Ahmed Al Zeyoudi, UAE Minister of Climate Change and Environment.

“This proof of concept is a groundbreaking development that addresses the challenges of energy, water and food security – three elements that are inextricably linked and which form a nexus, meaning that actions in any one area have an impact in the other,” declared HE Mariam Bint Mohammed Saeed Hareb Al Mheiri, UAE Minister of State for Food Security.

Etihad Airways has been at the forefront

Intersec 2019 highlights regional safety and security issues Intersec 2019, the world’s leading trade fair for security, safety, and fire protection, opened in Dubai on 20 January, featuring over 1,200 exhibitors from 54 countries. According to the organisers the Middle East market on track for doubledigit growth.

Highlights this year include the new Intersec Future Security Summit, featuring 40-plus regional and international experts and government speakers, while returning features include the Drone Zone, an outdoor demo area for live fire-fighting and

emergency rescue operations, along with workshops and seminars to keep an expected audience of 30,000-plus visitors informed about the latest market trends and technologies.

Spanning 60,000sqm Intersec 2019 covers the six show sections Fire & Rescue (431 exhibitors), Commercial Security (375 exhibitors), Safety & Health (142 exhibitors), Information Security (120 exhibitors), Homeland Security & Policing (90 exhibitors), and Physical and Perimeter Security (54 exhibitors).

of aviation biofuel research in the region and this marks the first time that a flight has been operated on fuel derived from plants grown in saltwater.

“Decarbonisation is important across the aviation industry and, together with our partners, Etihad is proud to be at the forefront of this pioneering new research,” noted Tony Douglas, Group CEO, Etihad Aviation Group.

Apart from Etihad Airways, Khalifa University, Boeing, ADNOC, Safran, GE and BAUER Resources were the other major stakeholders in developing a comprehensive sustainable aviation fuel value chain.

The dedicated showpiece event is often used as the annual platform for hundreds of exhibitors to launch their latest products and solutions for the global security, safety, and fire protection industries.

Several exhibitors showcased their latest solutions, from Artificial Intelligence (AI)based safe city services and smart home security products, to the latest high definition IPNetwork cameras and analytics software used across industry verticals from banking and retail to hospitality and oil & gas.

The 21st edition of Intersec in 2019 also coincided with the launch of the three-day Intersec Future Security Summit, where

Future Foresight on Security, Artificial Intelligence, along with the Internet of Things (IoT) and Intelligent Systems were among the central themes on the first day.

Intersec 2019 takes place amid a Middle East market where demand for security, safety, and fire protection continues to climb. According to Andreas Rex, Intersec’s Show Director, the Middle East market for physical and perimeter security, commercial and information security, fire protection, and drones, is currently estimated to be worth US$ 14.5bn. Analysts say this will grow at a compound annual growth rate of 13.5% over the next six years, valuing US$ 31bn in 2024.

FEBRUARY 2019 9

Easa Saleh Al Gurg Group and Petronas sign deal for lubricants distribution Dubai-based conglomerate Easa Saleh Al Gurg Group (ESAG) inked a new partnership with Petronas Lubricants International (PLI), a wholly-owned subsidiary of Malaysia’s national oil corporation, Petronas, which will

Abu Dhabi Airports Free Zone and Abu Dhabi Global Market sign MoU Abu Dhabi Airports Free Zone (ADAFZ), a wholly owned subsidiary of Abu Dhabi Airports, has signed a Memorandum of Understanding (MoU) with the Registration Authority of Abu Dhabi Global Market (ADGM Registration Authority) to promote the position of the Emirate of Abu Dhabi as a financial centre.

The MoU was signed by Rowan Michael

10 FEBRUARY 2019

see its range of automotive lubricants available in the UAE within the first quarter of 2019.

With the deal, ESAG will distribute the full range of Petronas lubricant products under its Al Gurg Tyres, Batteries and Accessories

Kelly, Senior Vice President of ADAFZ and Dhaher bin Dhaher Al Mheiri, CEO of ADGM Registration Authority.

The MoU seeks to establish joint initiatives in regards to providing warehouse commercial licensing, incentives and knowledge sharing.

The agreement addresses several important areas of cooperation aimed at increasing benefits for customers where ADAFZ will be facilitating the provision of warehouse facilities for ADGM entities and both parties will promote legal structures available at each of their respective free zones to investors.

portfolio. This includes the Petronas Syntium with ‘CoolTech’ range of motor vehicle lubricants, formulated to fight against excess heat, for optimum engine performance.

“We look forward to working with Petronas Lubricants International as they intend to make strong inroads into the local and regional market,”said Abdulla Al Gurg, CEO, ESAG Group. Established in 2008, Petronas Lubricants International manufactures and markets a full range of high-quality automotive and industrial lubricant products in more than 90 markets globally.

“With its wide network, reputation, as well as leadership, we are confident ESAG will help secure PLI’s long-term regional market success,”remarked Andreas Deges, Head of Regional Business – Middle East and North Africa, PLI. As one of the UAE’s leading business houses with 27 companies under its umbrella, family-owned ESAG is regional partner to more than 370 international brands and principals. The Group’s key joint ventures include Al Gurg Unilever, Siemens, Al Gurg Fosroc, Akzo Nobel Decorative Paints and Siemens Healthcare.

The MoU also calls for the creation of a joint committee to oversee the collaboration between ADAFZ and the ADGM Registration Authority.

“By working together, we will focus on meeting our customers’ needs through an expanded product offering and simplified commercial processes including company licensing, registration and employee visa processing,”remarked Bryan Thompson, CEO, Abu Dhabi Airports.

“Customers will be offered a variety of facility leasing options such as warehousing units, commercial offices and land plots, where facility management services are offered,”said Rowan Michael Kelly, Senior Vice President, ADAFZ. “The MoU is a strategic collaboration that will offer seamless and integrated solutions for investors with a focus on streamlining business setup. The agreement intends to boost the UAE’s vision to transform the country’s economy, by diversifying the range and depth of economic activity, and driving in more growth from emerging sectors,” observed Dhaher Bin Dhaher Al Mheiri, CEO, ADGM Registration Authority.

Dubai Customs tops Happiness Metre 2018 with 98% scoring index

Dubai Customs hit a new record on Smart Dubai Office’s Happiness Metre scoring 97.49%. This is the highest percentage reached by a government department since the launch of the happiness metre, and is above the 95% bar, which is the targeted percentage for client happiness in Dubai by the year 2020, according to a press note.

Dubai Customs topped the medium government entities with 1.75 million votes -21.87% of total number of votes for the happiness metre 2018. Dubai Customs received 1.5 million votes from clients for the quality of online smart services, and this takes 98.23% of the total number of votes given under this category of Happiness Metre 2018.

In 2018, Dubai Customs launched ‘ideclare’ application which enables passengers into Dubai declare their belongings if needed in only 5 minutes, rather than 45 minutes, which was the average time needed to do the process. ‘ideclare’ is a smart mobile app to securely submit declaration on the go. The app bypasses the current traditional paper forms, providing a quick and secure way to transfer information to the passengers on customs rules and regulations and will help passengers to cut down on waiting time in line.

“Dubai Customs provides 19 bundles of customs services to its clients through a sophisticated smart system in 16 customs centres. Number of customs transactions done by Dubai Customs in 2018 rose to 9.6 million, and number of companies registered at Dubai Customs rose to 223,000 companies,”commented Ahmed Mahboob Musabih, Director, Dubai Customs.

“Dubai Customs has developed strategies and plans to further improve services provided to clients which will help them towards more efficient and streamlined business,”concluded Edris Behzad, Client Management Director, Dubai Customs.

New Reprocessing Polymer Facility to start in KIZAD Khalifa Industrial Zone Abu Dhabi (KIZAD) has announced that Gulf Compound Blending (GCB), a part of the newly launched KIZAD Polymers Park, will be establishing a new polymer facility within the industrial zone.

GCB, a newly-formed joint venture between Met T&S (Maire Tecnimont Group), M. Cecchi & Co and Arab Development Establishment (ARDECO) is set to manufacture and supply thermoplastic materials using waste and nonprime materials in the UAE. The facility will produce new compound products specifically customised for targeted industries and will provide a link between raw material producers and plastic material manufacturers.

The new initiative, with support from ARDECO, will enable customers to purchase polymer materials specific to their requirements and needs.

Committed to supporting InCountry-Value in the UAE, GCB will establish its core business and hub in Abu Dhabi. GCB, as a second step of development, will expand its activities to plastic recycling as additional feedstock for its compound products, contributing to a new circular

economy approach in the UAE. The 25,000sqm GCB facility at KIZAD will use Khalifa Port on a daily basis to import and export products. The company’s target capacity is 500 kilo metric tons (KMT) of products per year in the medium to long term and will contribute to KIZAD’s burgeoning polymers hub with its know-how in re-processed and re-conditioned products.

“With some of the world’s largest polymer resin

manufacturers based in the UAE, Abu Dhabi is increasingly becoming a major global hub for the sector,”remarked Samir Chaturvedi, CEO, KIZAD. “We are glad to contribute in such initiative, in line with Abu Dhabi’s long-term strategy. GCB will enable the development of KIZAD and add value to the polymers ecosystem,” commented Mohammed Yousif Al Nowais, GCB Board Member and sponsor of the project.

FEBRUARY 2019 11

Tawfiq Abu Soud takes over at the helm at DSI

Dubai-listed Drake & Scull International (DSI) recently announced that its Board of Directors has appointed Tawfiq Abu Soud as the Group CEO for the company, effective 23 January 2019. Abu Soud will assume the responsibility of leading DSI’s operations from his predecessor Yousef Al Mulla.

Abu Soud has a stellar record of accomplishment of inspirational leadership and has more than 35 years’ experience in delivering consistent results, leading global business expansion, and securing robust business pipelines.

He has previously served CEO for ADC Energy Systems, CEO for Arabtec Subsidiaries, Managing Director for DSI’s MEP and Water and Power subsidiaries, and as the Operations Director for Manco LLC. He holds an MBA from the University of Hull, and is a certified Mechanical Engineer (Southern Illinois University). He also holds certifications in Quality Assurance, Project Management.

According to a Dubai Financial Market (DFM) filing, the Company is also concurrently coordinating with the external advisors and the Securities and Commodities Authority to call for a General Assembly Meeting in February 2019 to approve its organisational restructuring programme.

Bahri reports revenue growth of 24% in Q4-2018 Saudi Arabia’s Bahri reported a revenue growth of 24.2% for the quarter ending December 31, 2018. Total revenues grew to SAR 1.78 billion during the quarter, compared to SAR 1.43 billion during the same period in 2017.

For Q4-2018, Bahri registered a net profit of SAR 91.41mn, a 12% increase over the preceeding quarter’s net income of SAR 81.28mn. Operating profit increased by 39.7% to SAR 386.21mn, in comparison to SAR 276.39mn in Q4-2017. The maritime leader’s operating profit surged 177% from SAR 139.61mn, as compared to the Q3-2018.

For the fiscal year 2018, Bahri achieved a total revenue of SAR 6.13bn, up 1.3% from SAR 6.05bn of the previous year. The company’s annual net profit amounted to SAR 481.24mn.

“The company’s sustained efforts to enhance its maritime capabilities and offerings and the better performance of its five business units helped report solid results in 2018,” commented Abdullah Aldubaikhi, CEO.

12 FEBRUARY 2019

Aldubaikhi added that the company will pursue its long-term business growth strategies and will continue to strengthen its fleet and invest in new technologies, while remaining committed to seeking new investments to deliver higher returns to its shareholders.

BASF names new official for Middle East and Egypt operations BASF has recently announced the appointment of Dr. Udo Huenger as the new Vice President for operations in the Middle East, Egypt and Iran. He will be based at BASF’s regional headquarters in Dubai, UAE. With more than a decade of experience with the company, Dr Huenger has held several leadership positions, most recently as director of Refining Catalysts for Europe and the Middle East. In his new role as Vice President in the Middle East, he will be responsible for driving BASF’s new corporate strategy in the region, accelerating growth, and building relationships with key stakeholders.

“Dr. Huenger has a keen understanding of the region and our business that spans almost every industry in the Middle East,” remarked Dr. Markus Kramer, President of Europe, Middle East and Africa, BASF SE. BASF has been active in the region for over a century with offices in Dubai, Abu Dhabi, Khobar, Cairo, and Teheran. In addition, it runs a polyurethane system house in Dubai, an advanced production facility for customer-specific antioxidant blends (CSB) in Bahrain, and production sites for construction chemicals in the UAE, Saudi Arabia, Egypt, Jordan, and Oman.

Emirates and China Southern forge code-share partnership Emirates and China Southern Airlines (IATA code: CZ) have signed a Memorandum of Understanding (MoU) to progress a comprehensive reciprocal codeshare agreement, which is set to open up new destinations for passengers travelling between China and the Middle East and Africa.

The partnership with the Guangzhoubased carrier also allows Emirates’ passengers to enjoy seamless connectivity on domestic flights within China, adding eight new destinations to its global network.

The Chinese cities covered by the codeshare agreement include Fuzhou, Chongqing, Kunming, Qingdao, Xiamen, Chengdu, Nanjing and Xi ‘an during the initial phase of the partnership, subject to necessary government approvals.

Passengers travelling from China will have more choice and travel seamlessly with minimum connection times, when flying to destinations in Emirates’ Middle East network such as Riyadh, Jeddah, Dammam, Muscat, Kuwait and Cairo. The code-share agreement also includes flights to African destinations such as Seychelles and Lagos, operated by Emirates.

With the UAE’s visa-free policy for Chinese visitors, passengers can also enjoy hassle-free stopovers in Dubai, and experience what the city has to offer before flying to their final destinations. “The addition of the eight

domestic routes in the initial stage expands our reach in China, beyond the three Chinese hub cities of Beijing, Shanghai and Guangzhou,” said Adnan Kazim, Emirates’ Divisional Senior Vice President of Strategic Planning, Revenue Optimisation & Aeropolitical Affairs.

“Emirates is our first bi-directional partner in the Middle East, and we are very pleased to enter into a code-share partnership with Emirates,”remarked Han Wensheng, Chief Operating Officer, Southern Air Holding Company. Emirates currently has code-share agreements in place with 23 partners around the world.

our organisation. We believe that human interaction augmented by technology delivers an enhanced experience for our guests which will give us a competitive edge,” said Tony Douglas, Chief Executive Officer, Etihad Aviation Group.

Etihad has also adopted Office 365 as part of its strategy to become a more efficient organisation. The group’s senior leadership has also spearheaded initiatives for the automation of numerous business processes, to enhance day-to-day operations.

The airline plans to provide structured,

flexible education programmes for its employees that will allow them to use AI and other smart technologies to ‘supercharge’ their productivity and innovation. The training seminars will be carefully designed around the roles of their attendees, for maximum impact.

“It is encouraging to see Etihad and its leadership set an example by investing in their people, and in embracing what we refer to at Microsoft as tech intensity,”said Ihsan Anabtawi, Chief Operating and Marketing Officer, Microsoft Gulf.

Etihad Airways and Microsoft team up to launch region’s first AI academy Etihad Airways recently announced a strategic partnership with Microsoft to launch the first ever in-house AI Academy (Artificial Intelligence) in the region, which will revolutionise the way the airline serves its customers by up-skilling its workforce, optimising operations and creating alternate revenue streams.

As part of the AI Academy, all Etihad employees will be given access to an online training programme, and instructor led classes, to drive companywide AI literacy, empowering every employee to deliver more value to the company and its customers.

Microsoft specialists will also conduct a series of AI business workshops and hands-on technical lab sessions to help identify business challenges that can be optimised with AI. Etihad is currently embarking on a digital transformation journey in order to enhance the capacity and quality of its services to the almost 20 million passengers it carries each year.

“By upskilling them to use technology powered by AI, we are future-proofing

FEBRUARY 2019 13

transportation, customs clearance and Federal Tax Authority documentation for goods including chocolates, fine foods, fashion, beverages, electronics, cigarettes and cigars, personal care, perfumery and make-up.

The companies expects to manage approximately 17,000 SKUs (stock keeping units) across a variety of product types and will also handle the formalities required for the storage and handling of some categories of beverages on behalf of Lagardère Travel Retail.

Part of GAC Dubai’s contract logistics facility at Dubai South will be dedicated

exclusively to the account, and a G+5 interlock mezzanine deck with multiple aisles and shelves is being constructed for better product segregation and picking.

Approximately 3.5mn picked units of goods are expected to be handled by GAC Dubai every year under the contract.

“This marks the beginning of a long-term relationship with a world leading duty-free operator, which is now expanding in the Middle East. It is an excellent fit with GAC Dubai’s long-term vision for its contract logistics business to move into specialised storage and handling operations,”remarked Ronald Lichtenecker, Managing Director, GAC Dubai.

“This is Lagardère Travel Retail’s first warehousing venture in the region, so the awarding of a long-term agreement is testament to the strength and knowledge of GAC’s management and staff,”said Neil McMaster, GAC Dubai’s General Manager– Contract Logistics.

“We are delighted to be starting this new partnership with one of the strongest logistics operators in the Middle East. It will enable us to reinforce the fluidity and reliability of our regional supply chain, which is key to delivering excellent service to our customers,” commented Vadim Motlik, Lagardère, CEO, Travel Retail UAE.

has become one of the industry’s most experienced specialist equine carriers. In 2018 we transported over 2,000 horses for the first time,”said Wiam Al Qamshui, Business Development Manager responsible for Etihad Cargo’s Equine product ‘SkyStables’.

“The horses flying to Hong Kong are the stars of our show. We are delighted to entrust the safety and care of these world class show jumping horses to Etihad Cargo this year again,”remarked Christophe Ameeuw, Founder and CEO, EEM.

Etihad Cargo achieved a number of milestones with SkyStables in 2018, including its largest transportation of 90 horses in one day, as well as the transportation of 99 horses from MIA-AMS, as they returned from the horse racing season in Miami.

The horses for the Longines Masters of Hong Kong will be transported on a Boeing 777 freighter equipped with a specially designed ventilation structure and temperature control system, two vital components when transporting horses. It is also equipped with EASA and FAA certified - horse ‘air stalls’. Designed with non-slip floors which are covered with absorbent materials, the stalls are stocked with hay and water for the horses to remain fed and hydrated throughout the flight.

A team of professional grooms and veterinarians will handle the horses during loading and throughout the duration of the flight to ensure the horses remain comfortable and calm.

GAC Dubai signs up as Middle East logistics partner for Lagardere GAC Dubai handle approximately 17,000 Legardere SKUs across multiple product categories Lagardère Travel Retail has appointed GAC Dubai’s Contract Logistics team to handle a range of goods sold at Duty Free retail stores at airports in Saudi Arabia and the futuristic Abu Dhabi Midfield Terminal Complex (MTC).

Under the multi-year agreement signed by the two companies commencing 1 March 2019, GAC Dubai will take care of the port haulage, receipt, storage, pick and pack,

Etihad Cargo to transport 68 horses from Belgium to Hong Kong Etihad Cargo and EEM World, a global leading organiser of equestrian events, recently announced that Etihad Cargo was once more chosen to transport a special consignment of show jumping horses from Belgium to Hong Kong for the annual Longines Masters of Hong Kong taking place in mid February.

This is the third consecutive year that Etihad Cargo has been entrusted with the transport of these elite horses for the world’s most prestigious show jumping event. The dedicated charter flight from Liège Airport to Hong Kong International Airport will deliver 68 horses accompanied by professional grooms and a veterinarian for the round-trip journey.

“In the five years since our SkyStables product was introduced, Etihad Cargo

14 FEBRUARY 2019

Oman’s Mazoon Dairy poised for expansion Oman’s Mazoon Dairy Company has welcomed 1,600 milch dairy cows from Australia to their dairy farm in Al Sunaynah in Al Buraimi Governorate in northeastern Oman.

The cows will be the new occupants of the 15 square kilometre Mazoon Dairy, a fully-integrated farm, centralised processing plant and other facilities in Al Sunaynah that will help meet the market demand for highquality, fresh dairy products.

These are the first of 8,250 cows expected to be imported by 2020. Production is planned to commence in the second quarter of this year with the objective to produce over 200 million litres of milk annually by 2026, and to increase capacity to over 900 million litres by 2040.

“The arrival of the cows marks a significant step towards a more sustainable and productive growth phase for Mazoon Dairy and the Oman economy. It takes us closer to our larger goal of establishing the Sultanate as a self-sufficient dairy producer and a hub for food manufacturing,”said Dr. Rashid Al-Masroori, Chairman, Mazoon Dairy Company.

Aramex announces Record Calendar Year 2018 financials Aramex recently announced its financial results for the Fourth Quarter and Full Year ending 31 December 2018.

Aramex’s Q4-2018 Revenue grew by 8% to AED 1,425mn, compared to AED 1,324mn in Q4 2017. Q4 net profit dropped by 7% to AED 154mn, compared to AED 165mn in the corresponding period of 2017.

2018 Full Year Revenue increased by 8% to AED 5,086mn, compared to AED 4,721mn in FY-2017. Aramex’s net profit in 2018 increased by 13% to AED 492.6mn compared to AED 435.4mn for 2017.

“Our 2018 financial results reflect the success to date of our digital transformation efforts and the strong growth experienced across all verticals, particularly within our International Express business, which has been well positioned to benefit from the

“Mazoon Dairy has invested in a highly experienced team of internationally-trained farm managers and agro-experts, who have spent decades in the agriculture and farming business in various parts of the world and an expert team of Omanis,”commented Dr. Arjun Subramanian, CEO, Mazoon Dairy Company.

Once operational this year, Mazoon Dairy Company will provide quality home-

produced dairy and juice products, including milk, yoghurt, laban, fresh cream, cheese and ice cream.

Mazoon Dairy Company, established in 2015, is one of the largest projects in the Sultanate, with investments from the Oman Food Investment Company and other government investment and pension funds in Oman with a total capital of RO 100 million (US$ 260mn).

global boom in e-commerce,” commented Bashar Obeid, Chief Executive Officer, Aramex.

“Moving forward, we will continue to leverage new innovations such as Aramex Fleet, our crowdsourcing model; and WhatsApp for Business, to create more personalized interaction channels with our customers that deliver the transparency, visibility and flexibility they demand,” remarked Iyad Kamal, Chief Operating Officer, Aramex.

Q4-2018 performance highlights included Aramex’s International Express business which witnessed doubledigit growth of 15% to AED 702mn, compared to AED 608mn in Q4-2017. This is attributed to the significant growth in crossborder e-commerce across all regions.

Aramex’s Logistics and Supply Chain

Management business grew by 23% to AED 84mn, compared to AED 69mn in Q4-2017, as a result of the growth of business across the company’s key markets. This growth was largely fueled by the rise of Omni-channel sales from traditional retailers in GCC. Logistics and Supply Chain Management operations over the year grew by 16% to AED 302mn, compared to AED 260mn, due to the strong demand for Aramex’s warehousing and other valueadded services across key markets.

“In 2019, we will remain focused on implementing a lean and efficient business model, enabling Aramex to remain resilient against global geo-economic challenges,” added Obeid.

FEBRUARY 2019 15

Etihad celebrates Pope Francis’ first visit to the Arabian Gulf The worldwide leader of the Catholic Church, His Holiness Pope Francis, recently touched down in Abu Dhabi for a three-day trip to strengthen interfaith dialogue and understanding in support of peace.

Etihad Airways, as the UAE’s national airline, celebrated this first ever papal visit to the Arabian Gulf with festivities in its offices and on board its flights in recognition of the UAE’s Year of Tolerance.

The UAE hosted the Pontiff’s visit that recognised Abu Dhabi as a multicultural, multi-faith global capital.

Bahri highlights its maritime logistics capabilities at Breakbulk ME 2019 Bahri showcased its operational and maritime logistics capabilities at the 4th Edition Breakbulk Middle East 2019, which was inaugurated by HE Dr. Abdullah bin Mohammed Belhaif Al Nuaimi, the UAE’s Minister of Infrastructure Development.

Bahri Logistics, one of the top 10 breakbulk carriers in the world and one of the five business units within Bahri, showcased its extensive range of innovationdriven services and solutions at the event.

“Breakbulk Middle East provided an outstanding platform for us to connect with key stakeholders and potential customers to further our long-term growth objectives.

The event also enabled us to gain a deeper understanding on the latest industry developments and share knowledge with our partners as we strive to develop innovative new services and solutions that answer the evolving needs of our customers,” commented Ahmed Al-Ghaith, President of Bahri Logistics.

“We have always been an industry leader when it comes to technology and innovation, and events like these help us to identify fresh ways to enhance our offerings and drive increased value for our stakeholders. Bahri remains the industry

16 FEBRUARY 2019

benchmark for excellence in quality, safety, and customer satisfaction, and will continue to drive further transformation throughout the global maritime industry,” added Al-Gaith.

Bahri has closely aligned its business strategy to Saudi Arabia’s Vision 2030,

During his visit, Pope Francis delivered a papal mass to an expected congregation of 180,000 attendees at the Zayed Sports City.

The papal mass was available to watch on board Etihad Airways aircraft through a live broadcast of this historic event on in-flight entertainment screens and at the airline’s lounges worldwide. The live screening was also available for Etihad employees to enjoy in selected locations throughout the company’s offices.

At the end of his visit, Etihad Airways was honoured to be flying the Pontiff back to Rome’s Ciampino Airport on an Etihad Boeing 787 Dreamliner. Captain Abdulla Obaid, an Emirati pilot with more than 20 years of flying experience led the flight crew. Captain Christoph Schippel from Germany joined Captain Abdulla on the flight deck.

in support of the Kingdom’s ambitious economic goals. The company has identified the government’s diversification plans as a key priority and is playing an important role in increasing the private sector’s contribution and the share of non-oil exports to its national GDP.

Ground breaking ceremony held for MENA’s first solar-powered Green Hydrogen project HH Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of the Dubai Supreme Council of Energy, Chairman of the Expo 2020 Dubai Higher Committee, has broken ground for the first solar-driven hydrogen electrolysis facility in the Middle East and North Africa (MENA).

The ceremony was also attended by HH Sheikh Zayed Bin Sultan Bin Khalifa Al Nahyan, Chairman of the Board of Trustees of HH Sheikh Sultan Bin Khalifa Al Nahyan Humanitarian & Scientific Foundation; HE Saeed Mohammed Al Tayer, MD & CEO of Dubai Electricity and Water Authority (DEWA); HE Suhail Faraj Al Mazroui, Minister of Energy and Industry and HE Dr. Thani Bin Ahmed Al Zeyoudi, Minister of Climate Change and the Environment.

Also present on the occasion were Joe Kaeser, President and CEO of Siemens AG; HE Ahmed Al Mehairbi, Secretary General of the Dubai Supreme Council of Energy; HE Saif Al Falasi, CEO of ENOC; Ahmad Bin Shafaar, CEO of Empower; HE Mohammad Abunayyan, Chairman of Acwa Power, Saudi Arabia; HE Najeeb Mohammed AlAli, Executive Director of Dubai Expo 2020

Bureau; Dietmar Siersdorfer, CEO, Siemens Middle East, and other officials from the government and private sectors.

The project will be implemented in collaboration between DEWA, Expo 2020 Dubai and Siemens. It will be built at DEWA’s outdoor testing facilities in the Research and Development (R&D) Centre at

the Mohammed Bin Rashid Al Maktoum Solar Park in Dubai. The move supports a green economy in the UAE. “DEWA, Expo 2020 Dubai and Siemens are working together to help realise His Highness Sheikh Mohammed Bin Rashid Al Maktoum’s vision to identify new energy resources and provide sustainable power as part of a balanced approach that prioritises the environment. Our aim is to make Dubai a model of energy efficiency and safety,” affirmed HH Sheikh Ahmed Bin Saeed Al Maktoum.

“This pilot project is the first of its kind in the MENA region to produce hydrogen using clean energy. It supports DEWA’s efforts in innovation, research, and development in energy storage and sustainability, which is one of the themes of Expo 2020 Dubai,”commented Al Tayer.

“Siemens has pioneered this space globally, generating green hydrogen from renewable energy using Proton Exchange Membrane electrolysis. This project will be an important contribution to the evolving energy mix in Dubai and the UAE,”remarked Kaeser.

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Peugeot unveils its first concept store in the Middle East In partnership with its exclusive distributor in Abu Dhabi, Omeir Bin Youssef & Sons, Peugeot inaugurated today its first highconcept store in Yas Mall - Abu Dhabi in the presence of officials from Groupe PSA and Omeir Bin Youssef Group. The showroom marks Peugeot’s first concept store in the Middle East and third globally.

“This exclusive store reinforces Peugeot’s leadership in innovation and technology presenting a one-of-its-kind retail experience to consumers in the UAE. Our strategic partnership with Omeir Bin Youssef & Sons has reinforced Peugeot’s presence over the past 25 years,”remarked Samir Cherfan,

Etihad Airways Engineering and Tarmac Aerosave in deal to expand MRO services globally Etihad Airways Engineering has signed a Memorandum of Understanding (MoU) with TARMAC Aerosave, an industrial group specialising in aircraft maintenance, storage and recycling and owned jointly by Airbus, Safran and Suez.

The MoU paves the way for the two companies to identify and jointly pursue opportunities to develop, explore, support and extend maintenance services and products to their customers from around the world.

“We are happy to announce this collaboration which enhances our ability to support our customers and represents a key milestone on our journey to add the A350 to

18 FEBRUARY 2019

Senior Vice President Sales and Marketing for Middle East and Africa at Groupe PSA. “We are very thrilled to open the first ever Peugeot concept store in the Middle East. The store has been equipped with state of the art facilities to offer a worldclass retail experience to the Peugeot enthusiasts,” commented Abdulla Bin Omeir, Chief Executive Officer at Omeir Bin Youssef Group.

The new store underlines Peugeot’s digital transformation which entails adopting a consumer-centric strategy aspiring to be a customer connected brand with efficient digital processes for a seamless customer experience.

Designed to adapt to new customer needs, the new concept store from Peugeot features a futuristic setting with simple and modern architecture.

The digital screens in the store take the visitors into the Peugeot world offering an immersive experience and highlighting the history as well as the milestones of the brand over the past decades.

our extensive range of MRO capabilities,” said Abdul Khaliq Saeed, CEO, Etihad Airways Engineering.

“We are pleased to cooperate with Etihad Airways Engineering in order to develop synergies across our businesses and provide greater support to our customers worldwide,”commented Alain Leboucher, Executive Vice-President, Tarmac Aerosave.

Etihad Airways Engineering’s advanced facility is the largest independent commercial MRO facility in the Middle East, located adjacent to Abu Dhabi International Airport.

Aircraft hangars at the facility cover approximately 66,000sqm including 10,000sqm of aircraft painting facilities and a custom-designed hangar that can accommodate up to three Airbus A380 aircraft simultaneously.

Etihad Airways and Royal Jordanian announce new codeshare partnership Etihad Airways and Royal Jordanian have announced a new codeshare partnership which will provide their customers with greater access to key leisure and business destinations in North Africa, Europe, Canada, Asia and Australia.

This is the first such partnership between the two airlines between their respective hubs in Abu Dhabi and Amman. The partnership will see Etihad Airways place its ‘EY’ code on Royal

Jordanian’s flights from Abu Dhabi via Amman’s Queen Alia International Airport to Larnaca and Berlin, while Algiers, Tunis, Vienna and Montreal will be added to the agreement soon.

“This partnership reinforces the deep cultural, tourism and trade connections between the UAE and Jordan, and opens up a new world of opportunities for our customers,” said Tony Douglas, Group CEO, Etihad Aviation Group.

“This move is bound to expand our presence in Asia and Australia, which are key destinations for many RJ customers,” commented Stefan Pichler, President and CEO, Royal Jordanian.

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BAHRAIN COUNTRY REPORT

20 FEBRUARY 2019

BAHRAIN COUNTRY REPORT

Infrastructure and construction underpin continuity in

Bahrain’s non-oil growth Diversification measures initiated by the Kingdom stimulates non-oil sector expansion 2.4% yearon-year in Q3-2018 led by the construction sector and non-oil exports were up more than 9% YoY in the first 11 months of 2018

B

ahrain’s highly-diversified economy continues to show steady growth, where the third quarter of 2018 saw this driven yet again by the non-oil sector. The review of the Kingdom’s performance was recently published in the Bahrain Economic Quarterly (BEQ), which identified that GCC fiscal rebalancing should boost confidence and contribute to economic continuity more broadly in the region.

Such confidence is reflected in an acceleration of growth across the GCC, although the average growth rates will be markedly lower than pre-2008 years due to the unprecedented infrastructure boom in the region, the report highlighted.

The BEQ, published by the Bahrain Economic Development Board (EDB), noted that infrastructure remains a key driver of growth, but now goes hand-in-hand with a stronger emphasis on productivity-promoting measures being seen across the Middle East.

As Bahrain’s economy continues to diversify away from hydrocarbons, the BEQ found that Bahrain’s annual real GDP growth of 1.6% in the third quarter was underpinned by expansion in the construction and manufacturing sectors, as well as increased infrastructure spending.

Project activity upswing Project activity in the GCC-funded projects alone has seen a major build up, with the cumulative total active projects rising by 16.3% year-on-year (YoY).

Apart from the continued infrastructure build-up, Bahrain is seeing increased investment in technological modernisation and innovation. Most notably, such factors are driving change within the country’s rapidly growing FinTech cluster, but they are also key behind the ongoing expansion in manufacturing.

“With increased economic uncertainty around the world and lower growth trends in the Middle East overall, Bahrain can expect to see resilient growth thanks to its commitment to diversification and sustainability.

Gulf gateway As the gateway to the Gulf region, it is unsurprising that investment is flowing into sectors such as construction, ICT and FinTech thanks to Bahrain’s strategically important

FEBRUARY 2019 21

BAHRAIN COUNTRY REPORT

location, its economic benefits, and ease of doing business,”pointed out Dr. Jarmo Kotilaine, Chief Economist at the Bahrain EDB. In reflection of the Kingdom’s demographics and diversification, construction has long been an important source of growth and the sector expanded by 5.4% year-on-year in the third quarter. Overall it increased 6.2% in the first three quarters of 2018.

Not only is construction performing strongly on its own, it also has an important multiplier effect into the country’s ecosystem, especially in other parts of the non-oil economy such as real estate, finance, manufacturing, and trade. Growth in construction feeds through into strong momentum in these allied sectors. Real Estate and Business Activities grew by 3.2% in the first nine months of the year, for example.

Infrastructure investment attracts FDI Substantial investment in infrastructure is not only benefiting the construction industry, but the overall economy. Large projects such as the opening of the Alba Line Six,

Bahrain Focus Economy In 1932 Bahrain pioneered oil production in the Middle East, and in so doing, established the region’s initial framework for the petroleum industry. The new resource enabled Bahrain to modernise its economy by moving beyond traditional industries such as pearl diving and fishing.

At an early stage the kingdom sought to diversify its economy, and established itself as a leading regional financial centre in the 1970s and 1980s.

During Lebanon’s civil war, it was Bahrain’s well-established regulatory system that encouraged various banks seeking safety and stability to move their capital, and set up base in Bahrain.

Today, the country’s national plan, Bahrain Economic Vision 2030, aims to enhance private sector growth and continue government investment in infrastructure, affordable housing and human resources. The kingdom maintains a developed 22 FEBRUARY 2019

industrial sector and hosts one of the world’s largest aluminium smelters, Alba, with downstream businesses creating products for export.

Energy and food sectors Other industries in Bahrain include downstream oil and gas products as well as a growing food industry, serving both the Saudi market and the global economy. In the World Bank’s “Doing Business 2018” report, the kingdom ranked 66th out of 190 countries on ease of doing business and fifth in the paying taxes category.

Bahrain’s model of development has been studied and formalised by the UN Industrial Development Organisation (UNIDO), in partnership with the Arab Regional Centre for Entrepreneurship and Investment Training based in Manama, the nation’s capital.

The UNIDO Entrepreneurship Development and Investment Promotion programme, developed in Bahrain, has been implemented

with UNIDO support in 42 developing countries around the world with strong results.

In a bid to facilitate increased privatisation and to improve efficiency, a fully independent body, the Tender Board, is working to increase government transparency and clarity to both bidders and purchasers of the public tender system by creating pre-certification, online tracking and standardisation of the tenders.

Energy The energy sector is a pillar of Bahrain’s economy, accounting for the majority of government revenue but a shrinking proportion of GDP. Upstream recovery technology enabled Bahrain to increase its oil production rate to over 58,000 barrels per day (bpd) in 2015, up from 48,000 bpd in 2013. However, the government’s target to reach 100,000 bpd in 2017 was impacted by the drop in global oil prices, and Tatweer, Bahrain’s exploration and

production company, froze new drilling in 2016.

Presently, the country refines approximately 260,000-bpd, with the majority of crude resources coming from the Abu Safa field, which the country shares with Saudi Arabia. A new pipeline, with a capacity to transfer 350,000 bpd from Saudi Arabia to a Bahraini refinery, is expected to be operational in 2018, replacing an ageing 230,000-bpd pipeline. At the same time, gas production is expected to increase from 1.5bn to 2.7bn cu feet per day.

Transport The kingdom’s geographic location is a key strategic asset, enabling it to serve as a transportation hub for the region. The Khalifa Bin Salman Port has enhanced the country’s role as a primary supplier of goods to Saudi Arabia, the region’s largest market. Bahrain is also linked to Saudi Arabia via the 25-km King Fahd Causeway,

BAHRAIN COUNTRY REPORT

which now makes the aluminium smelter the largest in the world, and the Bahrain Petroleum Company (Bapco) Modernisation Programme, are just two of the many largescale infrastructure developments being undertaken across the Kingdom.

These projects not only create jobs and investment during the construction process but have a long-term impact through increased exports and broader competitiveness.

The commitment to Bahrain’s long-term prosperity from the public and private sector is increasingly recognised around the world. Ongoing investment by overseas multinationals such as Mondelez, American multinational confectionery, food, and beverage company and Arla Foods, largest producer of dairy products in Scandinavia, in the Kingdom’s manufacturing capabilities has resulted in a clear acceleration in the sector’s growth.

Manufacturing rose 3.0% YoY in the third quarter and was up 3.8% in the first three quarters of 2018. Such an increase in domestic manufacturing, most notably in

which is being expanded to handle increased traffic.

Additionally, Bahrain International Airport is in the midst of an extensive expansion and modernisation programme, which is expected to further improve the country’s status as a tourist destination and a centre for logistics by 2020. Bahrain Customs Affairs is currently undergoing the modernisation of various eCustoms initiatives in an effort to streamline processes and increase pre-clearance capabilities.

Tourism Due to its vibrant history, rich culture and diverse population, Bahrain attracts a large number of tourists, particularly from other GCC states. In 2012 the Arab League named Manama the Capital of Arab Culture, and the kingdom hosted a wide array of events relating to Arab art, music, architecture and literature.

Manama was also designated as

the Capital of Arab Tourism for 2013, which boosted the industry after a decline in tourism numbers following political unrest in 2011, and named the Capital of Gulf Tourism 2016 by the minister of tourism of the GCC. The Formula 1 Gulf Air Bahrain Grand Prix is a significant driver of annual tourism revenue. In addition, Bahrain is investing in infrastructure to support the meetings, incentives, conferences and exhibitions segment, and the kingdom’s Ministry of Tourism was absorbed by the Ministry of Industry and Commerce to help accelerate development of the sector.

Geography Due to land reclamation projects, the country has increased its overall landmass to more than 765 sq km, up from its original size of 665 sq km. The archipelago consists of 33 islands and is situated off the eastern shores of the Arabian Peninsula.

metals led by aluminium, has fed through to a boom in non-oil exports, up more than 9% YoY in the first 11 months of 2018.

Bahrain Economic Development Board The Bahrain Economic Development Board (EDB) is an investment promotion agency with overall responsibility for attracting investment into the Kingdom and supporting initiatives that enhance the investment climate.

The EDB works with the government and both current and prospective investors, in order to ensure that Bahrain’s investment climate is attractive, to communicate the key strengths, and to identify where opportunities exist for further economic growth through investment.

The EDB focuses on several economic sectors that capitalise on Bahrain’s competitive advantages and provide significant investment opportunities.

These sectors include financial services, manufacturing, ICT, tourism, logistics and transport.

The four predominant islands include Bahrain Island – accounting for 76% of the total landmass – Al Muharraq Island, Sitra Island and Umm Al Nasan Island, which are all interconnected by causeways.

Bahrain Island is also connected to Saudi Arabia via the 25-km King Fahd Causeway.

A second causeway to Saudi Arabia, named for King Hamad, which includes both road and rail links, is scheduled for completion by 2023. Manama sits at the northernmost part of Bahrain Island and is the country’s most populous city. Other major cities include Riffa, Muharraq, Isa Town and Sitra.

The Bahrain International Airport is located in Muharraq. Jebel Al Dukhan is the kingdom’s highest point, at 122 metres, as the majority of the landmass consists of low-lying desert. Less than 3% of land is arable, and the primary agrarian area is situated on a 5-km strip on Bahrain’s northern coast,

which produces dates, almonds, figs and pomegranates.

Natural Resources The country’s primary natural resources include oil, gas, fish and pearls. The traditional industries of fishing and pearl diving have diminished substantially since Bahrain began oil production but remain culturally significant.

Although the kingdom was the first GCC state to discover oil, it has smaller petroleum reserves than its neighbours. Water is another finite local resource for the kingdom, and the island’s primary aquifer has been depleted by overuse. Bahrain currently depends on desalination for approximately 90% of its potable water, as fresh water sources are scarce.

Due to land reclamation projects, the country has increased its overall landmass to more than 765 sqkm, up from its original size of 665 sqkm.

(Source: Oxford Business Group) FEBRUARY 2019 23

ONE-ON-ONE INTERVIEW

Centre stage with Centre Point

Logistics In a special series for Global Supply Chain, Brian Cartwright, Managing Director, Top Management Resources Group, meets with top professionals, the movers and shakers in the regional supply chain and logistics community.

This month Cartwright caught up with Torben Eskelund to discuss all things logistics. In this exclusive interview, he tracked the latter’s transition from a military to civilian career and progress from a long-time career with prominent Danish 3PL logistics and transport services provider DSV to his current position as CEO, Centre Point Logistics in Dubai where he is currently based.

24 FEBRUARY 2019

Q: Trace your career up until you took over at Centre Point Logistics?

Torben Eskelund (TE): After college in Denmark, I completed 3 years military service with the Royal Danish Army before entering the private sector with DSV, a 1976-founded Danish transport and logistics company.

I worked all around the world for DSV with postings in USA, South Korea, China and UAE, advancing my career through internal promotions with each move.

I was with DSV for 15 years before leaving them in 2015 to start my own logistics consulting company having secured a consulting contract for one of the largest UAE-based maritime terminals and ports.

Following this I took on the CEO role at Centre Point Logistics.

Q: What attracted you to logistics in the first place?

TE: Logistics was not my first choice of

career as I initially wanted to be a certified accountant. However in Denmark we have conscription – compulsory military service for every adult male and part of this involves a lottery where you literally pull a number from a tombola.

Pull a low number and you join the military; pull a high number you can elect to stay out. I pulled a low number, so after business school I joined the Army and was posted to the Logistics and Supply Division. In the end I found logistics far more interesting than accounting and decided to pursue a career in logistics and sought employment opportunities in the private sector after completing my military service with an honourable discharge.

ONE-ON-ONE INTERVIEW

Torben Eskelund is a dynamic 3PL leader with an impressive track record and varied history of work experience in logistics which stemmed from an early career in the Royal Danish Army’s Logistics and Supply Division. He was eventually commissioned as an officer and given command of a heavy transportation and recovery platoon.

That early entry into the world of logistics developed into a 20+ year career to date leading up to his current role.

FEBRUARY 2019 25

ONE-ON-ONE INTERVIEW

Brian Cartwright, Managing Director, Top Management Resources Group, is a specialist advisor to the international supply chain and logistics sectors.

He is a focused and highly proactive business leader, coach and mentor, regarded by his peers in the supply chain and logistics community as the leading head hunter and career transition advisor in the region for this sector.

With his wealth of knowledge, long experience and extensive network of

professional connections in these sectors across the EMEA region, he is uniquely positioned to support the commercial development of new and existing business relationships, for start-up businesses and established players in these geographies.

He has partnered with Global Supply Chain magazine to run an ongoing series of exclusive interviews with well-known senior executives to uncover the facts and provide real time insights on developments in the industry.

Q: What are your main goals at Centre Point Logistics as we approach 2020?

TE: One of our key strategic goals is offering

other parts of the world. I am very bullish about E-commerce growth.

a new innovative product within e-commerce fulfillment centres. We see this sector and demand in the market taking off to such a high degree it will outweigh the current capacity of even the most active players.

Q: What future challenges do you see for the logistics sector?

TE: The major challenge will continue to be

part of the agenda at most board meetings, which was clearly not the case a few years back. I definitely foresee that technology will become even more important, so it is imperative to have clearly defined strategies in this area going forward.

consolidation as more and more companies move into niche vertical areas of operations.

I think we might see some MNCs become more vertically focused than ever seen before, and very likely the top 10 global forwarders will continue to battle fiercely and either coexist or be overtaken.

Q: What will be the outcome for the logistics industry globally considering on-going trade wars and dramatic changes in the foreign policies of certain countries?

TE: Political environment and certain trade-

Q: What are your thoughts on technology innovations in the Logistics sector?

TE: Disruption and technology are now

wars or barriers have always been there and will continue to be part of future challenges.

As always, the most agile and flexible company will be the winners in the end.

Q: Why do you think the e-commerce opportunity is so enormous?

TE: This region has far less penetration in the

ratio of online shopping versus bricks-andmortar retail shopping than other markets in the world. This despite the Middle East having among the highest percentage of people owning smart phones compared to

26 FEBRUARY 2019

FISCHER FZE

grip

fischer fastens its

in the Middle East

Several regional landmark and large-scale projects are part of the company’s repertoire

Successfully completing highly demanding projects and a high social commitment are the hallmarks of fischer, the celebrated German manufacturer and provider of comprehensive fixing solutions.

Given its impeccable reputation, the fischer brand is a fixture in the region as is globally.

Jayanta Mukherjee, Managing Director, fischer FZE, addresses the media

G

iven its rock solid reputation and excellent track record, the GCC is the stronghold for fischer fixing systems. The 1948-established premier German company’s products are much sought-after by national and international clients in the Arabian Peninsula. fischer’s regional The United Arab Emirates subsidiary is an integral part of the global company’s endeavours to make its mark in vital infrastructure, key construction and numerous large-scale projects for both the private and public sectors across many geographies. fischer recently hosted its annual media meet for regional journalists at its regional headquarters in the Jebel Ali Free Trade Zone

(JAFZA). Present among several other officials were Jayanta Mukherjee, the longserving Managing Director and Kusum Rawat, Regional Marketing Manager, fischer FZE. Also present on the occasion was Sven Haag, the Germany-based Managing Director, Asia-Middle East-Africa, fischer. fischer is leveraging Its innovative products and solutions to increase its market share and penetration in the region as also globally. An increase in turnover is also expected for the upcoming years, according to company estimates.

“The Arabian Peninsula represents an economically progressive region. In the long term, Increasing tourism and large-

FEBRUARY 2019 27

FISCHER FZE

Kusum Rawat, Regional Marketing Manager, fischer FZE, addresses the media group. Also seen (L to R) are Jayanta Mukherjee, Sven Haag and Wolfgang Pott, Director of Corporate Communications

scale events such as the Expo 2020 and other key international sporting events as well as advances in industrialisation and urbanisation will see construction activity continue for many more years,”affirmed Mukherjee.

fischer fixation The Middle East as a whole, in recent years has become the one of the top construction hubs in the world with many iconic and large scale projects. fischer’s dependable products have been used in the constriction of the iconic Burj Khalifa and the Burj Al Arab and the Louvre Museum in Abu

Dhabi. Mukherjee pointed out that fischer has been associated with several other high profile projects in UAE including the Expo Metro Line, the various Expo 2020 projects, Zahia City Centre and Khalifa Hospital in Abu Dhabi; the Riyadh Metro–elevated and underground stations and the Jizan Economic City in Saudi Arabia; The Bahrain Airport Modernization and Aluminium Company of Bahrain (ALBA); the Hawalli Court Complex, Sheikh Abdullah Al Salem Cultural Center in Kuwait; the Mall of Oman, Oman Convention & Exhibition Centre (OCEC) in the Sultanate and many others in Pakistan, Kenya, Ethiopia and Tanzania.

“They all show the diversity and scope of fischer’s fixing systems that were implemented for the various requirements of these buildings. Many opportunities for growth are arising for fischer fixing solutions on the Arabian Peninsula in the years ahead.

Whether it plastic dowels, steel anchors or chemical fixings – there is significant demand for professional and safe anchoring,”’ asserted Kusum Rawat.

The fischer Middle East subsidiary founded in 2006 distributes products and also offers their customers a complete system of solutions and technical services through their team of highly qualified engineers. From

A display of fischer premium products

28 FEBRUARY 2019

PERFECT CROSSING

Discover the IVECO world and all its news on: www.iveco.com, Middle East area.

Or call now the IVECO Representative Office: 00971 4 2994935

BEST PAYLOAD IN THE INDUSTRY Payload up to 20 ton on a 6x4 chassis with Large “C” section chassis

CONTINUOUS OPERATION Higher autonomy thanks to the Cursor engine that allow to reduce fuel consumption

OUTSTANDING TCO Thanks to 11.2% fuel saving tested by TÜV on the New Stralis, optimised driveline and disk brakes

ON-ROAD EXCELLENCE. OFF-ROAD ENDURANCE.

MODULAR AND MISSION-ORIENTED RANGE New front axle (off road) that guarantee an higher ground clereance Robust chassis for light off-road missions

FISCHER FZE

A fischer engineer prepares to demonstrate the efficacy of a product

comprehensive design calculation support through their industry leading FIXPERIENCE software suite to Seismic calculations. The comprehensive services also include onsite seminars and training, pull-out tests and product application training and also direct delivery support of products to the construction sites.

Since its founding the UAE subsidiary has continuously increased its turnover and has opened distribution offices in the neighbouring countries.“We are now represented in Qatar, Saudi Arabia, Bahrain, Kuwait, Oman, Pakistan and even into Africa as of 2018 with new operations in Kenya, Ethiopia and Tanzania. The aim is to continue to contribute to the success with doubledigit growth. fischer UAE will continue to be involved with infrastructure measures and the construction of industrial facilities in future. The company hopes to further expand distribution in future in order to acquire new client groups,” explained Haag.

CSR priorities “Apart from business, fischer also takes its social commitment very seriously, which is why our team at fischer MEA actively participates in many social activities every year be it disaster relief initiatives, college

30 FEBRUARY 2019

career counselling seminars, public initiatives such as the Walk for Education, The Beat Diabetes walk and more. fischer is also an active supporter of NGOs such as Senses and Al Noor institute for children,”Rawat indicated. fischer is also well-known in the region for their innovation in introducing many marketleading products. Especially products such as their recently introduced products such as the FBS II multi-use concrete screw, the RM II chemical capsules that don’t require drillhole cleaning, FIS VL single tube chemical anchor system and more. “fischer UAE will continue to achieve its growth goals through customer focus, continuous improvement of all processes and with highly skilled employees. A qualified team of engineers and technicians provide on-site training in the newest developments in fixing technology to users, planners and architects. Experts in the field of research from the German headquarters are regularly on site in order to analyse the demands of the regional markets,”observed Mukherjee.

The company continues to invest in the region. In the autumn of 2016 the subsidiary opened its new local administrative centre in Dubai. The large team comprises employees from more than a dozen countries.

The fischer Group of companies is headquartered in Waldachtal in Germany’s Northern Black Forest. It is a family owned enterprise. Prof.

Klaus Fischer is the owner, chairman of the Holding and chairman of the advisory board of the company founded in 1948.

The product portfolio covers over 15,000 articles. These include dynamic anchors for earthquake zones or for severely stressed buildings, fire protection fixings, innovative facade systems and the first glass fitting where the anchor does not pierce the glass. A wide range of the screws, special products for composite thermal insulation systems, HVAC installations, adhesives, sealants, foams or drill bits show the high variety of fischer fixing systems.

KIZAD-ROADBOT

First of its kind tyre manufacturing plant to be set up in

KIZAD, Abu Dhabi

Construction begins on a US$ 615mn, 275000sqm factory in Khalifa Industrial Zone Abu Dhabi (KIZAD) and is expected to go functional by October 2020

S

enior industry figures from China and the UAE celebrated the recent groundbreaking of the Roadbot tyre project KIZAD (Roadbot), marking the development of the first tyre manufacturing plant in the UAE and the growth of downstream industry in KIZAD, Abu Dhabi’s industrial hub and part of Abu Dhabi Ports.

Developed by Chinese tyre manufacturer Roadbot with a total investment of AED 2.2bn on (USD 615mn), the Roadbot factory is being built in KIZAD’s ChinaUAE Industrial Capacity Cooperation Demonstration Zone in line with international standards and equipped with latest innovative solutions in tyre production.

It will be fully operational by October 2020.

The 2.2sqm Demonstration Zone is being developed by Jiangsu Provincial Overseas Cooperation and Investment Company (JOCIC), and Roadbot becomes the first Chinese firm to set up there since JOCIC and Abu Dhabi Ports signed a 50-year agreement in 2017. The Roadbot project was launched last year during the visit of Chinese Premier Xi Jinping to the UAE.

Record production capacity Across 275,000 square metres, the factory will

have an initial annual production capacity of 3mn Passenger Car Radial (PCR) tires and 1mn Truck and Bus Radial (TBR) tires; with production increasing to 10mn PCR tires and 1mn Truck and Bus Radials by 2022. The facility strengthens Abu Dhabi’s unique position in the regional original equipment manufacturer (OEM) and replacement tyre markets.

The groundbreaking ceremony was held in the presence of HE Dr. Sultan Ahmed Al Jaber, the UAE Minister of State and Chairman of Abu Dhabi Ports, and attended

by Roadbot Chair Zhang Yingzi.

“The Roadbot tyre factory will make an important contribution to the UAE’s manufacturing base as part of our leadership’s longstanding strategy to diversify our economy.

Today’s groundbreaking also demonstrates the increasingly close ties between the UAE and China, and reinforces the UAE’s role as a key partner in China’s Belt and Road initiative,”said HE Dr. Sultan Al Jaber.

“The Roadbot Abu Dhabi tyre project is the result of close cooperation between the UAE and Chinese governments. It is based on the principle of achieving shared growth through discussion and collaboration. We are deeply honored to be playing a part in the economic transformation in Abu Dhabi,” said Zhang Yingzi

“Abu Dhabi’s strategic location as a gateway to the MENA region and KIZAD’s logistics efficiencies and connectivity continue to attract significant interest from the Chinese business community,”’ commented Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports.

High Quality Control standards The factory will meet the global tyre industry’s highest standards of design and construction, and, when completed, be an intelligent, fully automated, and eco-friendly plant. It will include alpine waterfalls and ecological gardens in the atrium, creating an inviting and encouraging environment for employees.

The facility will also harness the latest technology to enhance productivity, such as the internet of things, logistics automation, smart equipment, equipment networking and system real-time data collection, and intelligent analysis.

Roadbot tyre project KIZAD is set to play a major role in the UAE’s economic diversification and sustainability plans, creating up to 1,200 new jobs and supporting the development of an innovative and sustainable ecosystem for the automotive industry in the UAE.

FEBRUARY 2019 31

“Where there is a Wilo, there is a way” Wilo inaugurates its new MENA Headquarters in Dubai’s JAFZA Wilo, the leading Dortmund, Germanyheadquartered manufacturer of premium pumps and pump systems and related intelligent control systems, has opened an expansive, newly-constructed facility in Dubai’s Jebel Ali Free Zone (JAFZA).

32 FEBRUARY 2019

A

spanking new 8,000sqm facility, the outcome of a year-long construction period, is Wilo’s headquarters for the Middle East and North Africa (MENA), a vast sprawling region that spans 20 countries from Morocco in the West to Pakistan in the East. The company first set up regional operations in Dubai in 2008.

WILO NEW REGIONAL OFFICE INAUGURATION

Wilo, JAFZA officials and diplomats pose for a group photograoh at the inaugural ceremony

Peter Fischer, German Ambassador to the UAE (second left), GuĚˆnter Rauer, German Consul General in Dubai (second right), Mohammed Al Muallem (centre), Yasser Nagi (extreme right) at the Wilo inaugural ceremony

FEBRUARY 2019 33

WILO NEW REGIONAL OFFICE INAUGURATION

Wilo and JAFZA officials joined diplomats, members of the media and other distinguished guests at the launch ceremony. The line-up included HE Peter Fischer, the German Ambassador to the UAE; HE Günter Rauer, the German Consul General in Dubai; Mohammed Al Muallem, CEO and Managing Director, DP World, UAE Region and CEO of JAFZA; Ahmad Al Haddad, Chief Operating Officer, Parks and Zones – DP World, UAE Region; Abdulla Bin Damithan, Chief Commercial Officer, DP World, UAE Region; Felix Neugart, CEO, AHK, the German Emirati Joint Council for Industry and Commerce, and Yunjoong Kim from WILO SE. This new building and its functional expansion accounts for the strategic significance of this central location within the region,” observed Oliver Hermes, Chairman and CEO, Wilo Group in a press statement on this commemorative occasion.

According to Georg Weber, Chief Technology Officer, Wilo Group, the pump manufacturer’s aim is to introduce energy efficient products that will enable businesses to optimise overall efficiency while developing innovative and intelligent solutions in the industrial sector in the UAE and the wider Middle East.

Global Supply Chain exclusive “As the MENA region consolidates its position on the global industrial map, we are witnessing growing demand for our products in this market. Our new facility caters to the needs of a vast range of industrial businesses,” remarked Yasser Nagi, Managing Director & Group Sales Director for the MENA Region, Wilo Middle East, at the well-attended inaugural ceremony comprising German and Emarati officials and the assembled media.

“In line with our goal to manufacture cutting-edge technology to enhance the building services sector, we have incorporated the Wilo-Academy into our headquarters to ensure that engineers have access to training and equipment required to develop and innovate,” he continued.

34 FEBRUARY 2019

The LEED Gold-certified building complex features its own assembly line, office space, showrooms, a logistics centre and dedicated training rooms for the WiloAcademy to host training sessions for the applications of Wilo products for dealers, engineers, installers and consumers.

Speaking exclusively to Global Supply Chain on the sidelines of the opening ceremony, Nagi was upbeat and positive about the new amenity.“This edifice is a testament to our impressive track record in the region over a decade with double-digit growth year-on-year. It was necessary to establish this office and we are naturally excited about it. It is our intent to be close to our customers. This is a vibrant region that holds promise and potential. From this office we now oversee operations across 20 Middle East and North African countries from Morocco in the West to Pakistan in the East,”he explained.

Wilo is also willing to consider building manufacturing facilities in the region after carefully studying practicalities and feasibility implications coupled with returns on investment. In any case we do assembly and comprehensive aftersales service. We have the necessary infrastructure and expertise to provide world-class service to our growing clientele in the region,” he further elaborated.

Sustainability is also a key tenet at Wilo, according to Nagi.“We are keen to reinforce our green credentials ensuring our manufacturing and operational processes are efficient with low emissions and a low carbon footprint. We are also committed to digitalisation, energy and utilities saving, making products that function effectively and are constantly innovations and improving our product range. Furthermore, we continue to invest considerably in Research and Development and in new technologies and applications,”he indicated “We have invested considerably in the region and continue to reap rich dividends. This inauguration of our brand new, spacious offices is a stand out as a centrepiece and important milestone in our progress in the region,”he added.

For Wilo, the sky is the limit and we are bullish about this region. Where there is a Wilo, there is a way,”he concluded.

“Countries around the world are looking to enhance their infrastructure and cities are seeking innovative, future-proof solutions. In a bid to align with the Smart Dubai 2021 strategy that aims to shape Dubai into a world-class smart city, Wilo is developing intelligent products to contribute to the transformation of the urban environment,” noted Georg Weber, CTO, Wilo Group.

“The opening of the new Wilo facility is a milestone event that highlights Dubai’s ability to support an indigenous manufacturing sector. Manufacturing has already grown to become an important economic contributor, accounting for 9.4% Dubai’s GDP in 2017 and is expected to grow to 20% by 2030 under the government’s Dubai Industrial Strategy 2030 vision,” commented Mohammed Al Muallem, CEO and Managing Director, DP World, UAE Region and CEO, JAFZA, whilst congratulating the manufacturer on the launch of the new facility.

“DP World, UAE Region is committed to supporting the government in its goals to further grow the emirate’s industrial sector, and we are creating the necessary incentives and services through our numerous Parks and Zones such as Jafza and National Industries Park in conjunction with the trade opportunities presented by Jebel Ali Port and Dubai Trade,” added Al Muallem.

Wilo, a leading global manufacturer of premium pumps—centrifugal and submersible pump, submersible mixers and aeration systems, has set new benchmarks in energy efficiency. Designed to optimise the energy input to generate the greatest output, the company’s Grade A pumps enable significant savings over a 10-to-15year operational lifetime.

With around 7,700 employees across 90 countries and growing, Wilo aims to continue its innovative and pioneering breakthroughs in its area of operations.

According to Nagi, the company is committed to investing heavily in research and development, and to driving continuous innovation in all areas of water movement technology through its sophisticated pump systems. The group manufactures pumps and pump systems at 13 production facilities across Europe, Asia and America.

COVER STORY

TSSC offers comprehensive refrigeration services

Solar Powered Refrigeration Truck

Going hot on

cold chain innovation TSSC’s solar technology for refrigerated trucks, eutectic plate systems and telematics technology are some of its latest innovation that continue to enhance the performance of cold chain systems 36 FEBRUARY 2019

T

echnical Supplies & Services Company (TSSC), a leading manufacturer of advanced building materials and systems in the Middle East and a member of Harwal Group, believes its latest innovative technologies for the cold chain industry continue to gain traction, serving the ever-growing demand for energy-efficient solutions in the region in line with the highest international and environmental standards.

TSSC offers comprehensive refrigeration services

TSSC capitalises on its five decades of leading experience in the manufacturing of insulated panels for cold stores and refrigerated truck bodies, a reputation built on quality management systems that follow the highest international standards.

The company continues to invest in green initiatives that are in line with its commitment towards sustainable engineering in terms of design and production, including improving its operational processes guided by ISO 9001:2015 quality standards.

“As a leading regional player in the cold chain industry, TSSC holds a 40% market share for cold rooms and a 35% share for refrigerated trucks and is working on innovative insulation products for cold storage and vehicle refrigeration systems.

TSSC’s expansive manufacturing capabilities have enabled it to build the largest cold store project in the world in Mecca, Saudi Arabia with a total area of 1.6mn sqft,”explained Miro Donabedian, General Manager for Cold Stores & Refrigerated Trucks, TSSC.

Insulation Imperative The insulation manufacturer is the sole producer in the region guaranteed to supply highly fire-resistant Camlock Panel Systems that comply to FM Approvals Standard 4880.

FM (Factory Mutual) is an international leader recognized globally in third-party testing and certification. The company currently produces 1.5mn sqm insulated panels for cold store warehouses annually

COVER STORY

(L to R)-Arcangelo DellaPenna, CEO, TSSC Group; Viken Ohanesian, Executive Director, Harwal Group and Nazar Shahinian, Vice President, Business Development, Harwal Group

FEBRUARY 2019 37

to serve an annual demand of 1,800 vans and refrigerated trucks.

According to Nour Chawi, Division Manager for Refrigerated Trucks, TSSC has been successfully testing products and fabricating vehicles of all types and sizes, equipped to transport dry goods as well as perishables such as dairy, poultry, meat, fruits and juices.

“We fully understand the challenges faced by the food and beverage industry when it comes to transport and distribution of goods to their markets such as temperature leakage, costly maintenance, higher fuel consumption and inefficiencies in the delivery of products. We address these issues through innovation and adhere to standardisation processes, environmental compliance and stringent quality control,”asserted Chawi.

Harnessing solar power TSSC’s solar powered refrigeration unit provides various benefits such as less energy consumption, less noise pollution, elimination of emissions from diesel exhausts and less dependency on the truck engines to maintain cooling in cases where engines are shut off.

TSSC’s innovative eutectic plate system also ensures the maintenance of temperature inside a cold storage or refrigerated truck for long periods, even after the unit has been disconnected from the power supply.

The company has also been creating added value for its customers using telematics, the latest development in remotely monitoring the overall condition of refrigerated vehicles in transit.

“With its in-depth knowledge of refrigeration systems, TSSC proves to be highly capable in delivering world class solutions - creating temperature-controlled storage systems and processing plants using globally accepted natural refrigerants and low Global Warming PotentialGWP synthetic refrigerants,” commented Haris Usama, General Manager of Electromechanical Refrigeration Services.

38 FEBRUARY 2019

COVER STORY

TSCC takes big strides in turnkey advanced building systems TSSC recently showcased its latest building materials products and technologies and secure new partnerships, boost investments and network with leading professionals from around the world.

The company is showcasing its turnkey solutions for the construction industry featuring its advanced building systems.

The TSSC Building Systems presents new opportunities for developers and builders to source their supplies and the other components of the building process under one roof, providing efficiency and cost-effective solutions to clients seeking a single platform for their construction needs.

The innovative solution offers a complete line of pre-engineered building systems including the design, manufacturing, and assembly of pre-fabricated structural and lightweight steel buildings.

The system is applicable for a wide range of building applications such as industrial and commercial warehouses, agricultural facilities including poultry farms and animal breeding sheds, midrise buildings suitable for schools and hospitals, and residential communities.

Consolidating professional network TSSC further looks to strengthen its professional networks and connect with leading professionals from construction companies, HVAC business owners, and project managers from building industry segments and discuss its top-level products and solutions.

“Our knowledge and expertise in the construction industry can contribute to advancing the sector’s growth by optimising existing resources while ensuring highquality, efficiency and great value.

We are committed to manufacturing products using environmentally sustainable materials and operational processes and meet our customers’ demand following the highest international standards,” affirmed Viken Ohanesian, Executive Director, Harwal Group.

TSSC is also known across the region as the largest insulated

panel manufacturer by volume, with an annual production of over six million square metres of insulated panels and an annual conversion of 100,000 metric tonnes of steel. It implements an integrated management system certified by leading international standards such as ISO 140001 and OHSAS 18001.

Making an impact with insulation products and services “TSSC is a leading brand in the construction sector, having established our reputation in providing the best and highest quality of insulation products and services.

As part of our commitment, we hope to reach out to our markets and provide new solutions for the sector. Our association with some of the leading companies in the world is a testament to our continuing leadership in the field and we hope to continue serving the sector,” noted Nazar Shahinian, Vice President–Business Development, Harwal Group. Shahinian added that TSSC has supplied to various major projects across the GCC for companies such as Al Marai Company, Agility Logistics, Amana Contracting, Saudi Building Systems, Al Watania Poultry, Al Baraka Farms, Nadec Dairy, Landmark Group, McDonalds, Mabani Steel, Spinneys, MasterBaker, Shapoorji Pallonji, MERAAS and Al Futtaim Carrilion, among others.

Technical Supplies & Services Co. (TSSC), the largest manufacturer of insulated panels in the Middle East region. Established in 1975, the ISO 9001 certified company manufactures a wide portfolio of products and services--all coming from its facilities across the region and the world, located in Dubai, Abu Dhabi, Riyadh and Moscow.

This multi-faceted company’s portfolio of products includes steel structures, cladding sheets, standing seam roofing systems, flat pack containers, unitized glass systems, doors and windows, cold rooms, prefabricated shelters, portacabins, factory manufactured houses, stainless steel kitchen equipment, merchandising refrigerators, metal sheds and the provision of galvanizing services and industrial refrigeration services.

FEBRUARY 2019 39

EMIRATES SKYCARGO

in the cold chain industry relating to thermal protection, gas permeability, ease-of-use and installation, and recyclability.

This made Emirates SkyCargo an industry pioneer in the use of specialized and lightweight cargo covers for protection against external heat and weather fluctuations.

In 2016, Emirates SkyCargo introduced ‘White Cover Advanced’ for protecting temperature-sensitive shipments in particular, pharmaceuticals during transport.

This was followed up with the launch of ‘White Cover Xtreme’ in August 2017.

Blossoming partnership

Luiza Cantanhede, Global Marketing Manager, Tyvek Cargo covers, DuPont Safety & Construction and Zeeshan Haris, Emirates Cargo Product Development Manager, at the 10th anniversary celebration

Emirates SkyCargo and DuPont commemorate their decade-old partnership Emirates SkyCargo and DuPont celebrate their collaboration that created the renowned Tyvek White Cover that transformed the cold chain protection of temperature-sensitive products in air transit

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mirates SkyCargo and DuPont Safety & Construction (DuPont), the business unit of DowDuPont Specialty Products Division and the manufacturer of DuPont Tyvek brand thermal cargo covers, recently marked the 10th anniversary of their partnership for cold chain solutions in the air cargo industry.

Emirates SkyCargo and DuPont began their partnership a decade earlier when they released the ‘Emirates SkyCargo White Cover’, the first pallet cover made with Tyvek that revolutionize cold chain protection of temperature-sensitive products in air transit.

The Emirates SkyCargo White Cover provided a cost-effective solution for issues

40 FEBRUARY 2019

“We have been on our partnership journey for 10 years together, creating innovative solutions that are leading the cold chain space,”commented Rose Lee, President, DuPont Safety & Construction.

“We are always on the lookout for innovative and cost-effective solutions to manage the integrity of our cold chain,” said Dennis Lister, Emirates Vice President, Cargo Commercial Development.

“Our partnership with DuPont has been very fruitful and has resulted in the development of the revolutionary White Cover range of products,” said Lister.

“Over the years we have improved the functionality of the White Cover and have released enhanced versions including the most recent White Cover Xtreme, providing an excellent first level of protection for cargo,” he added.

Emirates SkyCargo has developed extensive cold chain capabilities for transporting temperature-sensitive cargo.

The air cargo carrier has over 25,000 square metres of dedicated temperature-controlled storage space at its cargo terminals at Dubai International Airport and Dubai World Central.

Emirates SkyCargo has also developed a large fleet of cool dollies thereby reinforcing cold chain protection on the ramp for cargo shipments.

“From the point of view of product development, Emirates has been a good partner for DuPont,” remarked Steve Brabbs, Global Technical Leader, DuPont Tyvek Cargo Covers.

Emirates SkyCargo and DuPont Safety & Construction pioneered the White Cover range

DHL GLOBAL COMPETENCE CENTRE

DHL Global Forwarding’s first Global Competence Centre for Humanitarian Logistics in Dubai unveiled

resilient logistics support to organizations who are highly committed to ensure that critical resources are delivered, to meet the needs of those who require them,” said Amadou Diallo, CEO, DHL Global Forwarding, Middle East and Africa.

With its geographical location and longstanding reputation as a cluster for global aid and relief organisations, Dubai currently plays host to several major logistics hubs including the International Humanitarian City, the largest humanitarian hub worldwide from which nine United Nations (UN) agencies and 48 NGOs currently run logistics operations.

Wide-ranging experience

Amadou Diallo, CEO, DHL Global Forwarding, Middle East and Africa

Fatima Ait Bendawad, Head of Global Humanitarian Logistics Competence Center, DHL Global Forwarding

Centre consolidates DHL’s existing humanitarian logistics services for faster, more reliable supply chain support

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HL Global Forwarding has strengthened its portfolio of humanitarian logistics services within its first Global Competence Centre for Humanitarian Logistics, designed to meet the growing global demand for these logistics services.

The Centre will see close coordination across all DHL business divisions to provide all related services and products, to meet customers’ needs. A DHL veteran with over 15 years of experience in creating, providing and implementing solutions for complex humanitarian operations, Fatima Ait Bendawad has also been appointed to lead the Global Competence Centre for Humanitarian Logistics.

The Centre offers non-governmental organisations, aid agencies, and their suppliers and manufacturers a broad range of services including air and ocean freight, customs clearance, warehousing and local

distribution of humanitarian shipments.

These services will be backed by control tower and data analytics services designed to offer heightened levels of freight visibility for humanitarian situations of any level of urgency and complexity.

Leveraging logistics capabilities Organisations can also use the Centre to tap into DHL Global Forwarding’s global network of freight connections for rapid, efficient transport of resources; as well as sector-specific services including temperature-controlled and cold-chain shipments for life sciences and healthcare – critical for public health assistance projects involving the long-term delivery of medicines and medical equipment to developing areas.

“The impact of conflicts and natural disasters on the world is evident and at DHL Global Forwarding, we have the capability, expertise and global network to render

DHL has extensive experience in disaster management activities – which includes the deployment of its Disaster Response Teams (DRT) consisting of DHL experts to provide on-ground logistics support in natural disaster zones; and the Get Airports Ready for Disasters (GARD) program, which runs joint workshops with the UN Development Programme to prepare local airport management for the logistical issues associated with natural disaster situations.

“The level of preparedness, be it expedited customs clearances, readiness to handle dangerous goods like chemicals or medicines, or processes for on-ground collaboration between multiple agencies directly correlates with the efficiency of humanitarian logistics.

Our work on the front line has helped us build and maintain familiarity with the nuances of compliance, regulation and international standards that apply to movements of critical goods,”remarked Fatima Ait Bendawad.

“Humanitarian logistics involve longterm dedication to getting critical relief goods to those in actual need, gaining trust and working with numerous partners to coordinate shipments in situations which often require short turnaround times, 24/7 availability, and high levels of flexibility,”affirmed Massar Diop, Director of Humanitarian Logistics, DHL Global Forwarding.

With more than a decade of experience working in this field, Massar has built a strong network of relationships with key UN agencies, NGOs and suppliers, to provide the best solutions to their needs, in different parts of the world.

FEBRUARY 2019 41

LOGIPOINT, JEDDAH, SAUDI ARABIA

LogiPoint brings modern, world-class concepts in logistics efficiencies to Saudi Arabia From its humble origins in 1999 in Jeddah, Saudi Arabia, to the logistics powerhouse it is today, LogiPoint has had a stellar track record. As the Kingdom’s premier logistics services provider commemorates it 20th Anniversary, it leverages two decades of experience for ambitious future growth

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n 1999, the ambitious journey of LogiPoint began as it built the Kingdom’s first and the largest Bonded and Re-Export Zone (BRZ) in Jeddah Islamic Port comprising an area of 1 million sqm of reclaimed land. Initially, it was merely an idea to facilitate, streamline and accelerate the import and export through Jeddah Islamic Port (JIP).

Over the next 20 years, LogiPoint transformed the Saudi Maritime and Supply Chain landscape into a world class integrated logistics infrastructure as it introduced bonded warehousing and storage, faster customs clearance, dependability, transparency and accountability in operations, and logistics parks and zones beyond JIP to the mix.

These additions enabled the industry to introduce new services and solutions to the market, while making it possible to lower costs and reduce inventories. This empowerment enabled LogiPoint clients to offer modern solutions and reliable services at a competitive price to their areas of operations and thus able to achieve and exceed their own growth objectives.

LogiPoint is the brainchild and a subsidiary of two established industry leaders, SISCO (Saudi Industrial Services Company) and the Xenel Group; and is a sister company of Red Sea Gateway Terminal (RSGT). Farooq Ahmed Sheikh, CEO, LogiPoint believes that the company has the right mix of experience, market understanding and strategic assets to play an even greater role in the future as the Kingdom embarks on its pursuit of the Saudi Arabian Crown Prince’s Grand ‘Vision 2030’.

42 FEBRUARY 2019

Farooq Ahmed Sheikh, CEO, LogiPoint

20th Anniversary commemorations “This year, we will be celebrating our 20th anniversary,”commented Sheikh.“We have come a long way since our birth in 1999, when we introduced the concept of a Bonded and Re-export Zone (BRZ) to the Saudi Arabian regulatory authorities, while laying out its benefits to the national economy. Over the years, we have worked as enablers and logistics partners with our customers from across all the major industry segments,”he continued.

“We have helped them avoid unplanned and variable expenses in terms of demurrage and penalties as well as in lost opportunities, while also helping them achieve greater turn-around and ROI on their investments.

LogiPoint delivers comprehensive, safe and convenient Logistics solutions by leveraging our strategic assets,”he added.

Those strategic assets make for an impressive reading: A total land area of 1.78mn sqm; 347,600sqm of warehouse area; 70,000sqm of truck parking area; 6,400sqm of residential area; 747,000sqm of total open yard; 38,800sqm of commercial area and 11,800sqm of truck service area. An everexpanding team of industry experts and specialists all supported by a world class IT

infrastructure, and all under-pinned by a commitment to growth and innovation.

Way forward Sheikh is both clear and optimistic about the way forward for the organisation. According to him, combining strategically located logistics zones and the company’s logistics support services, have positioned LogiPoint ideally to lead the drive for efficient logistics solutions in the industry.

“We do this through building capacities and enhancing capabilities and by offering transactional, tactical and strategic benefits to all our stakeholders. We are committed to expanding our current investment base by developing both green-field and brownfield integrated logistics facilities across Saudi Arabia while focusing on attracting international investors into the Kingdom,” he explained.

“We have been at the forefront of bringing international concepts in logistics efficiency to KSA over the last two decades, and with the Kingdom’s drive towards achieving the Saudi Vision 2030 objectives, we see a greater role for LogiPoint as enablers of trade and development through innovative logistics solutions,”he affirmed.

Subscribe today February 2019 Issue 56

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ENHANCING THE BUSINESS OF LOGISTICS

ENHANCING THE BUSINESS OF LOGISTICS

RIGHT STOCK, RIGHT PLACE, RIGHT TIME Chalhoub reaches new levels of service with Slimstock’s revolutionary inventory optimisation solution.

Port of Duqm

Rising maritime hub

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Dubai South Finding true North

ENHANCING THE BUSINESS OF LOGISTICS

TSSC

COLD CHAIN Today’s hot button issue

The multi-faceted conglomerate is quite literally driving the cold chain

ALS Logistic Solutions-Goldhofer

Westernacher Balsharaf

Potent partnership

Tranzone

Technology revolutionising WMS

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Streamlining Operations

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fischer fixation

Wilo

Grasping markets

Kuehne + Nagel UAE In expansion mode

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UD Trucks

Pumping up the ante

On the fast track

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Breakbulk ME

2019

boosted by Governments, participation by high-profile maritime companies This key maritime event will further strengthen the regional breakbulk sector by providing expertise and promoting industry best practices

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he 4th annual edition Breakbulk Middle East 2019, the GCC’s leading breakbulk and project cargo sector event will be held on 11 and 12 February with the support of multiple leading industry maritime entities. This year’s two-day conference and exhibition will be held at the Dubai World Trade Centre under the patronage of HE Dr. Abdullah Belhaif Al Nuaimi, the UAE Minister of Infrastructure Development and the Chairman of the Federal Transport Authority for Land and Maritime and has received.

44 FEBRUARY 2019

“The timing and location of this year’s event is ideal as it presents an opportunity for discussions to take place which can potentially spot and improve any lingering issues revolving around the well-being and development of local and regional infrastructure,”commented the UAE Minister.

“Dubai’s recent achievement of being named one of the top five maritime hubs in the International Shipping Centre Development Index (ISCD) is a remarkable accomplishment which we have worked

tirelessly in collaboration with government and private sectors to obtain,” remarked Eng. Hessa Al Malek, Executive Director of the Maritime Transport at the Federal Transport Authority for Land and Maritime.

“Breakbulk is a vital part of Dubai’s economy, covering a large segment of non-containerized cargo such as steel rebar, bagged cement, and drummed cargo, which are used by key industries such as building and construction,” said Mohammed Al Muallem, CEO & Managing Director, DP World, UAE Region.

EMIRATES SKYCARGO

King Abdullah Port boosts Breakbulk Middle East 2019

Officials addressing the pre event press conference for BBME 2019

Advancing the regional breakbulk sector “Project cargo plays an important role in supporting the growth of the logistics sector in the region and is often a Major catalyst for the development of additional infrastructure.

We speak from experience, with a strong track record of providing logistics support that includes heavy-lift and outof-gauge cargo moves for capital projects, oil and gas projects, and marine services,”

asserted Mohammad Jaber, COO Abu Dhabi and Regional Director–Project Logistics, MEA, Agility.

“The UAE’s understanding of the importance of maritime transport has been a key factor of the country’s rapid success.

Despite these impressive accolades, it is our aim to utilize Breakbulk Middle East as a tool to carry on their momentum and ensure stagnation and complacency are avoided,” said Leslie Meredith, Marketing Director, Breakbulk Events & Media.

For the second consecutive year, Saudi Arabia’s King Abdullah Port located along the coast of the Red Sea, around 100 km north of Jeddah on the Kingdom’s West coast, has extended its support to Breakbulk Middle East 2019.

For the first time, the upcoming fourth annual edition will be held under the patronage of HE Dr. Abdullah Belhaif Al Nuaimi, the UAE Minister of Infrastructure Development and the Chairman of Federal Transport Authority for Land and Maritime The two-day conference and exhibition will take place on 11 and 12 February at the Dubai World Trade Centre in Dubai, will tackle topics to aid project cargo specialists in seizing regional opportunities and constructing effective project plans.

“The maritime and shipping industries account for 90% of the entire global trade market, which makes Breakbulk Middle East crucial to our region’s continued development,” remarked Rayan Qutub, CEO, King Abdullah Port.

“The port has proved particularly successful in attracting a larger portion of the breakbulk sector of the industry. We are estimating a further 15% increase in future volume, particularly involving steel, timber and cement cargo, and our partnership with specialist port operators and steel handlers AM Steel has already seen us increase our one-day cargo record to an impressive 27,000MT,” he added.

“The strategic location of the UAE and GCC ports being at the heart of the Arabian Gulf has enabled these markets to acquire a largest share of total container and cargo movement in the region, and our intent is to help increase their shares even further,” said Ben Blamire, Commercial Director, Breakbulk Middle East.

Given that the outlook for the coming five years in terms of gross domestic product development and the growth of imports and exports is considerably better than it was during the 2012-2016 period, it’s the time to capitalise on this positive projection. The UAE has been a key player in driving offshore investment in the Middle East region, securing an approximate US$ 66bn in regional maritime sector investments.

FEBRUARY 2019 45

UD Trucks

revs up sales across the MEENA region in

2018 It has been smooth running for the Japanese truck manufacturer as it notches YoY sales increases, explores new market potential and makes inroads in the region

46 FEBRUARY 2019

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espite roadblocks in the form of challenging economic circumstances, 1935-established and Saitama, Japanheadquartered UD Trucks gained sales traction and the company announced that it has registered a 9% increase in sales across the Middle East, East and North Africa (MEENA) region in 2018.

In the Middle East region alone, the company involved in the development, manufacture and sale of commercial vehicles, vehicle components and buses, increased its market share or recorded stable sales in five out of seven markets it operates in.

The UAE market has been very tough over the past twelve months; however, UD Trucks, now part of the Volvo Group, once again performed well and saw its market share increase.

A country-by-country review has revealed that Qatar and Bahrain remain very strong markets for UD Trucks as the brand enjoys a significant market share, which it continued to strengthen further in 2018. In Qatar, UD trucks are dominating the Japanese segment and, more specifically, the construction

business. In Bahrain, the brand continues to hold the number one position in the market.

Saudi Arabia has experienced another tough year, with the total market continuing to drop. However, UD Trucks managed to keep a good level of sales while improving its market share in some key segments such as waste management and construction. Saudi Arabia remains a key focus for the brand, which has put in place aggressive plans to further grow and support its customers in the Kingdom.

Growth also outside of GCC Both Lebanon and Jordan were reactivated in 2018 as the brand transitioned from the legacy trucks to the introduction of new models in both the heavy and medium duty sectors.

UD Trucks has high ambitions in these two markets as it leverages on the strong brand reputation built over recent years.

It also enjoyed increased market share in two of its key East African markets - Ethiopia and Sudan. In Ethiopia, the challenge

COMMERCIAL VEHICLES: UD TRUCKS

remains related to hard currency availability, yet despite these tough conditions the brand performed very well, especially in the last quarter of 2018. The brand has also registered good sales in Sudan, since it officially launched its new models in February 2018, both in logistics for medium duty, and for mining and construction for the heavy duty.

In Pakistan, UD Trucks was officially relaunched in June 2018, with fantastic initial feedback from customers regarding the brand’s heavy duty truck,‘Quester’, which was said to become the truck to pave the way towards modern and efficient trucks in the country.

The brand has enjoyed very good sales traction since the official re-launch in Pakistan.

2019 is set to be an important year for the brand as it investigates entering new regional markets with significant potential such as

Tunisia and Kenya, and many other in West and North Africa.

2018 saw the Middle East launch of two new popular Quester models designed for the heavy construction industry − the Quester 6x4R-40 Tons and 8x4R-46 Tons models with hub reduction, which puts the brand as the unique Japanese manufacturer offering a complete heavy-duty range as UD Trucks is benefitting from being part of the Volvo Group and having access to its technologies.

Advantage UAE Supporting its customers, UD Trucks’ regional offices in Dubai includes a parts distribution centre, which delivers over 12,000 different spare parts to UD Trucks partners across the MEENA region. Thanks to its strategic

location in the UAE, UD Trucks importers enjoy short lead times, as well as lower transport and inventory costs to better serve customers in the region.

UD Trucks is committed to maximising customer satisfaction by providing the required tools to succeed in terms of providing the highest standards of customer service, reducing vehicle downtime and minimising long-term running costs. In this respect, customers benefit from UD Genuine Service and UD Genuine Parts, as well as hi-tech features such as a real-time Fuel Coach system and the latest telematics hardware, all designed to optimise the ownership experience.

“This region is very strategic for UD Trucks and we are reinforcing our team and creating a customer-centric organisation to serve the best interests of our customers and partners.

Given our modern full product range, our strong partners in the region, and our long Japanese heritage, we have all the tools to succeed and we can only see a bright future for UD Trucks and its customers in the region,”concluded Mourad Hedna, President, UD Trucks, MEENA.

FEBRUARY 2019 47

VOLVO TRUCKS

When safety is of paramount concern Banking on Volvo’s innovative safety solutions Volvo Trucks is well and truly on the fast track to safety. From the company’s perspective, the truck or vehicle and driver safety are two of the most important factors in the Middle East’s transportation of goods industry

48 FEBRUARY 2019

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eing a safe and responsible driver takes a combination of knowledge, skill and attitude. In tandem, safe and sturdy vehicles also contribute to road safety and can save lives. With this in mind, safety has moved centre stage in Volvo’s corporate viewpoint. Safety concerns are indispensable and the company has gone lots of extra miles to ensure and reinforce safety aspects in its vehicles.

On top of the human cost, road traffic accidents also have a significant impact on business. Volvo Trucks Middle East has estimated that a major accident will cost the truck owner an average of 350 hours of downtime, whilst a medium accident will cost the owner an average of 60 hours downtime.

Accidents also have a significant effect on the cargo that is being transported. While a small accident can delay the delivery time of a haul, major accidents come at a huge

cost as often the cargo being transported is completely destroyed.

Safety has been a core value in Volvo Trucks DNA since it was founded in 1927 and throughout the years the company has pioneered lifesaving technology that not only saves lives, but also keeps transport businesses running smoothly at optimum profit margins, with minimum downtime and secure loads.

Over the decades, Volvo Trucks has been responsible for introducing a number of features to its truck range, all designed to keep drivers safe and cargo secure. The following constitutes Volvo’s safety guide and guidelines.

Three Point Seat Belt One definitive prevention aid in the safety of truck and car drivers is the seat belt; it is a well-known fact that when a vehicle comes to an abrupt stop, something is needed

to exert force to keep the driver or the passenger secure in one position.

In 1958 Volvo engineer Nils Bohlin invented the three point safety belt, which is used globally in both cars and trucks today. A survey conducted by Volvo’s accident research team found that six out of ten truck drivers who are killed or injured on the roads would have suffered lighter injuries or walked away entirely unharmed if they had been using their seat belts.

Volvo’s visionary three point safety belt has been estimated to have saved millions of lives globally and is a standard feature on every Volvo truck produced.

Visibility improving mirrors Good visibility of the road and other road users is crucial to every truck driver. Volvo Trucks recently redesigned its mirrors for its new FH, FM and FMX range to provide drivers with a larger vision area than ever

before. A 25% larger gap between the cab and the mirror as well as an 85% larger gap on the passenger side prove to be an invaluable tool to every truck driver, whether they are keeping an eye out for cyclists and pedestrians on city roads, or other road users on busy highways and roads.

safer driving practices on the region’s roads, greater fuel efficiency, increased uptime and a reduction in environmental impact for businesses.

Safely designed cabs

A decisive factor in keeping a truck driver safe in a full frontal collision or a roll over accident is the safety of the driver cab. The Driver Development Programme Having a well-trained driver is beneficial for cabs of Volvo Trucks’ FH, FM and FMX ranges are tested thoroughly in various scenarios, every haulage business. Poor driver safety including the front pendulum test, to education can put the lives of drivers and other road users at risk, while also affecting a ensure that they meet Swedish cab strength business financially due to downtime, repair standards, the toughest safety standards in the world. and insurance costs.

Every cab is made up of injury preventive Available to customers in the Middle East, Volvo Trucks’ Driver Development Programme materials, for example the steering wheel and the dashboard are made up of energy keeps safety at its core to ensure that truck absorbent material, as are the trims which drivers of every nationality have a universal are positioned at knee height, while all of the language of safety behind the wheel. upholstery inside the cab is made up of flame The programme is focussed on proof materials. increasing driver knowledge to result in

FEBRUARY 2019 49

VOLVO TRUCKS

Front Underrun Protection System (FUPS) Companies pay out a substantial amount when other road users are hurt due to an accident involving a truck from their fleet. This most commonly happens when a car becomes wedged under a truck and the injuries to the occupants are serious. To prevent this and to maximise the effect of car crumble zones, Volvo Trucks has developed the Front Underrun Protection System (FUPS) as a mandatory feature on all of their trucks.

Using a 200mm deep crumble zone, the penetration of the car’s compartment is considerably reduced. The truck’s bumper is located at the same height as that of a typical car bumper, so that the deformation zone of the car can be fully utilised. This feature increases the survival rate of the car’s passengers. FUPS is standard on the Volvo FH and the Volvo FM models.

Along with he above the Safety Edition Volvo FH truck comes with the following advanced safety features:

Headway Support System The headway support system reduces risk of accidents and collisions. The system alerts the driver at the risk of collision with the vehicle ahead. The warning consists of red LED lights reflected on the windscreen and an acoustic signal from the speakers.

If risk of collision is imminent, the vehicle brakes will be applied automatically. The function is activated each time the vehicle is started and is available at speeds above 15 km/h. It can be switched off and on with a button in the dashboard. The system uses both the radar and a camera to collect information.

Lane Change Support Blind spots, particularly on a truck’s passenger side, can make lane changing difficult and dangerous. Volvo Trucks Lane Change Support is a radar system designed to aid drivers and prevent accidents. It is activated whenever the driver uses turn signals, and a warning alerts the driver, if an obstruction is detected on the truck’s side.

Electronic Stability Program Electronic Stability Program (ESP) is an important safety feature. The program

50 FEBRUARY 2019

reduces the risk of skidding and rolling over. The control unit continuously receives information from a variety of sensors on the trucks and makes a new evaluation of the driving situation several times per second.

If the system detects that the truck is starting to lurch or behave abnormally, the ESP reduces engine torque or activates the brakes individually in order to reduce speed and straighten the vehicle.

Lane Keeping Support Staying focussed and within lane can be difficult during long-haul transportation, which is why Volvo Trucks has developed Lane Keeping Support. Operational at speeds over 60 km/h, the system monitors the truck’s position on the road. When it detects the truck drifting or swaying outside of its lane, a warning alerts the driver so that they can resume control.

Driver Alert Support An extension of Volvo’s Lane Keeping Support, the Driver Alert Support monitors driver behaviour and steering wheel movements. If the truck begins to sway or drift, a warning system alerts the driver and suggests taking a break if the behaviour continues.

Tyre Pressure Monitoring The Tyre Pressure Monitoring System makes it possible for the driver to supervise the tyre pressure through the driver information display. A correct tyre pressure gives an

optimal use of the tyre and leads to increased lifetime and decreased fuel consumption.

Volvo From a safety point of view, a controlled tyre pressure results in detection of leakage and preventing blowouts.

Volvo Dynamic Steering The Volvo Dynamic Steering is an active steering system, which reduces steering force up to 85%. It obtains a predetermined steering feel, independent of load and tires, and contributes to a more relaxed driving through improved directional stability.

Airbag The airbag is mounted in the steering wheel’s centre module and will be released in case of a head-on collision with a heavy or solid object.

Profile Volvo Trucks provides comprehensive transport solutions for professional and demanding customers, offering a full range of medium to heavy duty trucks. Customer support is secured via a global network of 2,200 dealers and workshops in more than 120 countries.

Volvo trucks are assembled in 16 countries across the globe. In 2014, more than 117,000 Volvo trucks were delivered worldwide.

Volvo Trucks is part of the Volvo Group, one of the world’s leading manufacturers of trucks, buses and construction equipment, and drive systems for marine and industrial applications.

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FURTHER. We Provides your business with unparalleled access to market, world-class infrastructure bonded and non-bonded solutions as well as dedicated investor support in a duty free and competitive operating environment.

We cater to all market verticals including trade, logistics and manufacturing. We endeavor to create value through the integration of our logistics zones and support service.

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Advantage Port of Duqm:

Leveraging the Competitive Edge The buzz is all about the Port of Duqm, the new economic engine of the Sultanate of Oman, progressively emerging as the hub of economic activity.

Thanks to its central location, deep-sea natural port and easy access to a mineral and resource-rich hinterland

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he Port of Duqm Company is a 50:50 joint venture between the Government of Oman and the Consortium Antwerp Port. It lies at the heart of the specificallydesignated Special Economic Zone of Duqm (SEZD), a greenfield project which is the new centre of economic gravity and a special focus region for investment and trade, commerce and infrastructure development in the Sultanate of Oman.

SEZD is a massive project planned over an extensive area of 2000 square kilometers and is destined to become an industrial and logistics hub. It includes a 230,000 bpd crude oil refinery covering an area of 900 hectares with hydro-cracking, hydro-treating and delayed coking units along with onsite utilities and storage.

It will also produce light/middle distillates, focusing on naphtha, LPG, diesel and Jet A1 fuel as primary products, along with sulphur and pet-coke. The Duqm Refinery

52 FEBRUARY 2019

is integrated to the liquid jetty terminals at the Port of Duqm, facilitating the export of refined products.

Advantage for Bulk Import/Export of Minerals Limestone and dolomite are currently being mined near the Port of Duqm and there is immense potential for further quarrying.

India is a major market for limestone and dolomite, due to its massive demand from the cement and steel sectors. India is facing an acute shortage of high-grade limestone and dolomite while Duqm has such abundance of these minerals that it far exceeds the domestic requirement.

Duqm lies across the Arabian Sea, very close to the west coast of India and thus there is an excellent opportunity for bulk export of these minerals to India, via the Port of Duqm.

Besides, dolomite is currently being exported through the Port of Duqm to Qatar, where construction activity is at its peak for the FIFA

World Cup 2022 and several other projects planned up to 2030.

On the supply side, further enhancing the potential of the Port of Duqm is the proposed Oman Rail Mineral Line project, which seeks to transport tens of million tonnes of limestone and gypsum, from mineral rich areas in southern Oman to the Port of Duqm, for export to key markets.

Besides, Oman’s economy is significantly dependent on energy resources and there are major concession areas for oil and gas particularly in the resource-rich central and southern regions of the country which are most easily accessible via the Port of Duqm.

This is evident from the fact that the Port of Duqm is already importing OCTG pipes and heavy-lift project cargo, for which the flat terrain and central location of Duqm are immensely advantageous.

The Port of Duqm already imports drilling chemicals for supply to oil and gas fields and there is significant potential to increase

DUQM RISING

supply of bulk chemicals such as barite, bentonite and industrial salt. Likewise, the Port of Duqm also imports cement in small volumes and expects to be handling larger volumes of cement and clinker, once the port is fully operational.

Advantage in Downstream Industries The industrial land offered by Duqm Industrial Land Company (DILC), a subsidiary company of the Port of Duqm, is ideally located close to the Port. It is situated opposite the Duqm Refinery and close to the locally available raw materials sources, making it very convenient to import raw materials, source material locally, and export products.

The location is best-suited to industries where smooth operations are significantly reliant on the availability of high-quality logistics. Based on the availability of raw materials, requirement of manpower and utilities as well as the significance of

incentives offered, the Port of Duqm and DILC have identified industries that have highest potential to become successful in the specially allocated zone.

The availability of high-grade limestone in abundance foresees the development of a limestone-based industrial cluster which will produce intermediate products such as lime, ground/activated or precipitated calcium carbonate as well as end products such as paper manufacturing.

Additionally, there are excellent prospects for salt works and soda ash production which creates opportunities for glass industry, while the presence of clay and silica sand creates prospects for manufacturing ceramic tiles and sanitaryware.

Furthermore, the Duqm Refinery project, expected to be operational by 2022, is expected to create several downstream opportunities in the petrochemicals sector.

The Port of Duqm provides ready access to key markets for these products, including

India, GCC countries as well as the wider MENA region–Duqm thus has the potential to become a regional hub for these industries.

Advantage in Liquid Bulk Storage and Distribution The Port of Duqm has a dedicated vast piece of land for bulk liquid storage, lying adjacent to its liquid jetty which is ideal for importing/ exporting and storage of liquid products.

The Port of Duqm is currently providing land on long term lease, where companies experienced in handling liquid storage and tank terminal operations may build storage facilities, ideal for operations where blending and/or distribution is required.

In conclusion, the Port of Duqm offers the promise of creating an unmatched ecosystem with a reliable supply of feedstock, low cost manpower and utilities, proximity to the export/import terminals leading to supply chain efficiencies supported by a truly worldclass deep-sea port.

FEBRUARY 2019 53

DP WORLD

The global trade enabler’s report card reflects a burgeoning business portfolio and comprises a mix of strategic investments, partnerships and acquisitions

DP World closes strong in 2018

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P World widened its engagement with revolutionary new technologies, diversified its global business portfolio through investments and acquisitions worth US$ 3bn and extended meaningful support to environmental initiatives around the world during 2018.

The headline projects were the launch of DP World Cargospeed with Virgin Hyperloop One and taking over leadership of the technology company, digital transformation of business operations across the global portfolio, the game changing high bay storage system for containers at Jebel Ali, the successful launch of a US$ 3bn investment platform in India, acquisition of complementary businesses in Europe, India and Peru, and container port development projects in Africa.

DP World also successfully closed the 100% acquisition of Drydocks World (Drydocks).

People development was the other key area of focus through association with the Erasmus University in Rotterdam, to develop a strategic skills development programme and the 20Xel programme to recruit the brightest of the UAE nationals for future leadership roles.

“2018 was a successful year and a period of strategic growth for DP World in

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diverse fields. We made major strides in our evolution into a company that focuses on smarter trade to make lives better through data driven logistics. Innovation, with an eye on future trade solutions and acquisitions designed to expand our global business footprint were key,” commented Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO.

India, Africa expansion DP World’s $3 billion investment platform in India with the government’s National Infrastructure Investment Fund (NIIF) saw the global trade enabler acquire India’s Continental Warehousing Corporation (Nhava Sheva, Mumbai)). Complementary businesses were also added to the global portfolio in Peru and in Europe with the Unifeeder Group.

DP WORLD

Dubai Trade shortlists nominees for its 11th E-Services Excellence Awards 2019

Elsewhere activity in Africa gathered pace it signed an agreement with the Suez Canal Economic Zone (SCZone) to implement the first phase of an integrated industrial and residential zone in Sokhna, Egypt. DP World will also soon build and operate a 1,000-hectare modern logistics hub outside of Bamako, the capital of Mali. In the Democratic Republic of Congo (DRC), it announced a new concession for the management and development of a greenfield multipurpose port at Banana, the first deep-sea port in the country along its small coastline of 37 kilometres.

The landlocked country of Ethiopia, one of the fastest growing countries in the world, became a shareholder of the Port of Berbera in Somaliland as DP World invest in infrastructure to develop the Berbera Corridor as a trade gateway, which is one of the fastest growing economies in the world.

CIS, North America forays In Kazakhstan, DP World has signed two framework agreements to run Special Economic Zones (SEZ) in

Aktau and Khorgos which act as primary transit points for transEurasian cargo trains. DP World acquired a 51% stake in the Khorgos SEZ and 49% in the Aktau SEZ, with both facilities playing an important role in enhancing trade connectivity along the New Silk Route.

In the Americas, the enabler has agreed on terms for the next phase of expansion for the DP World Prince Rupert Fairview Container Terminal on the Pacific Coast of Canada. In Europe, a new cruise passenger terminal at DP World Limassol (Cyprus) opened providing world-class facilities and services for passengers.

“Despite the challenging global economic uncertainties, we have experienced continued revenue growth by focusing on high value cargo, operational efficiencies and consistently delivering value to our customers through smart solutions. We are committed to continue to build on the gains of the past year as we enter 2019,”concluded the Chairman & CEO of DP World Group.

Dubai Trade, the smart trade solution provider in Dubai and a subsidiary of DP World, announced that its 11th E-Services Excellence Award (ESEA) will feature three new categories including two for reexporters announced by Dubai Exports, the export promotion agency of the Department of Economic Development (DED) in Dubai, in partnership with Dubai Trade.

The new categories include Electronic Services Award to Shipping Agent for General Cargo Service, the Emerging Re-Exporter of the Year and Champion Re-Exporter of the Year.

Under the patronage of HH Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai, the ESEA ceremony will be held in February 2019 to appreciate e-transformation in trade and logistics and to recognise the companies using the Dubai Trade portal with the best smart services adoption rates. The winners are nominated on the basis of the number of mobile and online transactions conducted by them on the Dubai Trade Portal throughout 2018.

Six winners will be acknowledged under the following categories: Smart Services Award for M-Token Services; Smart Services Award for Free Zone Services; Smart Services Award for Clearance Services - Customs Broker; Smart Services Award for Clearance Services – Trader; Smart Services Award Payment Services; and Electronic Services Award to Shipping Agent for General Cargo Service.

In addition, Dubai Exports, will present four special awards to Dubai based exporters (manufacturers) and re-exporters. The awards are for The New Exporter of the Year; The Innovative Exporter of the Year; Emerging Re-Exporter of the Year; and Champion Re-Exporter of the Year.

“The E-Services Excellence Award celebrates the success of smart transformation in trade and logistics, one of the frontline growth engines of Dubai and the UAE. As the single window online platform connecting all our services, Dubai Trade is a major enabler of this achievement,” Mohammed Al Muallem, CEO and Managing Director, DP world, UAE Region commented “Importers, exporters and all the companies and organisations using Dubai Trade are the real driving force behind our continued success as enablers of e-trade. Our aim is to provide realtime transactions, reduce cost and time, secure payment options, and grant peace of mind to the customer,” remarked Hussain Al-Blooshi, Acting Chief Operating Officer, Dubai Trade.

ESEA is the first award platform of its kind in the region to recognise organisations for adopting smart services in trade, shipping and logistics who are judged on the basis of their actual adoption rates of electronic transactions.

Dubai Trade, which offers a single window for cross-border trade and smart trading solutions, constantly expands its award categories to encourage increased adoption of smart services in support of Dubai’s smart government initiatives, which reflect positively on the emirate’s trade sector.

FEBRUARY 2019 55

SOHAR PORT AND FREEZONE

Mark Geilenkirchen, CEO, SOHAR, addresses officials at the official reception

SOHAR’s impressive ‘Report Card’ at 15 years

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OHAR Port and Freezone commenced its 15th anniversary recently with its signature annual business reception held at ‘The Chedi’ Muscat. During the event, SOHAR revealed its operating results for 2018, looked back over its 15 years of double digit growth and has entered into new partnership agreements signalling a strong start to 2019.

In 2018, SOHAR witnessed yet another year of consistent growth with an average of 1.2mn tonnes of cargo handled by the port every week in 2018, and has also set new records in both vessel calls and cargo throughput. Dry bulk and liquid bulk throughput increased by 14% as compared to 2017 and SOHAR received 3,443 vessel calls in 2018, marking a significant increase of more than 12%.

Signalling a positive start to 2019, SOHAR has entered into two partnership agreements, the first was with Mannesmann and the second with Oman Maritime Waste Treatment.

The collaboration with Mannesmann will see the creation of Calcined Petroleum Coke (CPC) and Recarburizer Calcined Coke (RPC) plants on 30 hectares (ha) of land at

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the Port. This is one the first projects that will be built in the reclaimed area of the Port, and will add value to both the aluminium and steel industries within SOHAR.

MARPOL compliant The agreement with Oman Maritime Water Treatment, which is a joint venture between Khimji Ramdas in Oman, Ramky Enviro Engineers in India and Nature Group of the

SOHAR and Oman Maritime Waste Treatment officials at the deal signing ceremony

It has been smooth sailing for SOHAR Port and Freezone as it demonstrates financial results in 2018 and signs multiple agreements for upcoming transformational projects Netherlands, will see the construction of a full-fledged International Protocol of Marine Pollution (MARPOL) compliant facility at the Port. This is done to ensure that ship waste collection and disposal are carried out in compliance with MARPOL. As of January 2018, all countries that are signatories to MARPOL must adhere to its regulations.

SOHAR also signed an agreement to replace its existing tug boats. According to

SOHAR PORT AND FREEZONE

the agreement, five existing vessels that provide towage services for all the vessels entering and exiting the port will be replaced.

The contract will have a duration period of 15 years, and delivery of the first tugboats is expected on 1 August 2020.

Over the past year, SOHAR did not only witness capacity growth, but the Port itself grew in size owing to the SOHAR Port South expansion. In 2018, 50ha of land was added to the current capacity of 2,000ha in the first phase of the expansion and a further 200ha will be added in subsequent phases.

Port South development “Earlier this year, we signed an agreement with Dredging International NV for the development of the first phase of SOHAR Port South,” Mark Geilenkirchen, CEO, SOHAR, noted.“This expansion is vital for SOHAR and has been steered by our rapid growth; it will be assigned almost exclusively for oil and gas-based investments,” he continued.

Geilenkirchen also highlighted the SOHAR partnership with Marafi Sohar for the creation and the operation of new high-capacity mineral aggregate terminal at the Port. The new development is expected to generate more market opportunities since SOHAR is ideally equipped to develop highcapacity aggregate facilities, given that most of the quarries producing mineral aggregate are in close proximity to the port.

Apart from fuel products, the refinery in SOHAR also produces significant volumes of naphtha and propylene, which serve as feedstock for an adjoining aromatics and polypropylene plant. The deep-water berths allow for raw materials such as iron ore to be easily received, ensuring smooth primary and secondary production processes.

Food focus Given the massive potential of the food industry, both in upstream and downstream businesses, the Food Cluster has been revamped. The aim of this cluster is to promote the entire value chain of food processing and logistics support within the expanding multibillion-dollar regional food industry.

In addition to the new flour mill and grain silo complex, the SOHAR food cluster will also house a sugar refinery, with packaging and distribution facilities planned in the future.“The cluster will enable us to attract significant business in the coming years and is complemented by a dedicated deep-water berth and agro-terminal for the fast and efficient movement of foodstuffs within the Port,” Geilenkirchen added.

Commenting on the growth in the Freezone, Jamal Aziz states,“The increase in businesses plays a significant role in Port development. The Freezone hosts a multitude of companies not only from Oman, but also from the GCC, the Indian sub-continent, Asia and Europe.

Many of these companies operate in the industrial and logistics sectors, and have established a competitive advantage in SOHAR by offering lower operating costs, energy-saving systems, and providing quick and easy land lease options, which include pre-built warehouses and commercial offices,” remarked Engr. Jamal Aziz, CEO SOHAR Freezone & Deputy CEO, SOHAR Port.

“Additionally, we are also promoting the consolidation of shipping cargo for smaller players in the Freezone. Providing more practical options for cargo consolidation reduces unnecessary delays

Mark Geilenkirchen, CEO, SOHAR mingles with colleagues at the official reception

SOHAR signs agreement with Oman Maritime Waste Treatment SOHAR Port and Freezone recently signed an agreement with Oman Maritime Waste Treatment to reinforce their commitment towards environmentally friendly solutions and initiatives and promoting sustainable development in and around the Port and Freezone.

The agreement was signed between HE Dr. Mohammed Nasser Ali Al Zaabi, Chairman of the Board at SOHAR Port and Freezone and Hritik Khimji, Director of Khimji Ramdas. The partnership will see the creation of a full-fledged MARPOL-compliant facility for vessel waste disposal.

The facility will also host multistage processing to comply with the most stringent standards of waste disposal, both at the anchorage area and within the port through a purpose-built vessel.

“Given that MARPOL is an extremely significant international marine environmental convention, the upcoming project will further support our efforts of providing better facilities to our tenants and a safe environment to communities in and around SOHAR,” said Mark Geilenkirchen, CEO, SOHAR Port and Freezone.

Oman Maritime Waste Treatment is a joint venture between Khimji Ramdas of Oman, Ramky Enviro Engineers Limited of India and the Nature Group of The Netherlands, whose main area of operation is the collection and disposal of waste from ships in adherence to the ‘International Protocol of MARPOL’.

and helps increase cargo volumes. Our much larger upcoming projects include new ferrochrome smelters that are under construction in the Freezone.

This will be accompanied by the second biggest antimony plant of its kind in the world, and the creation of the SOHAR Cotton Cluster. SOHAR has also recently concluded an agreement for the creation of a petroleum coke calciner plant in the Freezone, where raw petroleum coke will be used as feedstock for downstream petrochemical industries,” Engr. Jamal Aziz concluded.

FEBRUARY 2019 57

LEAN LOGISTICS

Leaning on Lean International Supply Chain Management:

Achieving velocity beyond the four walls Making the case for and advocating lean thinking, eliminating wastage, streamlining systems and maximising product and process value In its most elementary form, Lean Logistics is the method to understand, recognise and abolish wasteful activities from the supply chain mechanism with a view to enhance product flow and speed.

In this two-part contribution, Tom Craig, President LTD Management, Pennsylvania, USA, a leading authority and professional consultant on logistics and supply chain management and regular contributor to Global Supply Chain advocates and outlines the thinking digits for enabling ‘the lean’ in Lean Logistics

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nd-to-end supply chain management (SCM) for manufacturers and retailers is the most extensive company activity. It is the complex, crosses many departments, goes outside the organisation, both upstream and downstream, and has length and reach. With e-commerce omnichannels, it has become strategic.

SCM is the driver to meeting customer expectations with order delivery velocity. That demand for faster service is crossing markets, industries, and the world. And the delivery requirements are becoming faster.

Achieving supply chain velocity that includes inventory velocity and order delivery velocity requires transformation from traditional supply chains that were designed on node-line/stopand-start. This is an excellent way to gain that needed speed with lean.

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LEAN LOGISTICS

Lean and supply chain management has much in common: Emphasising pull, not push, for product flow Recognising the wastes of excess time and inventory Highlighting there are two flows-product and information/data Elevating the importance of supplier performance on success

Four Walls:

Lean logistics, like lean manufacturing, focuses on the four walls of a structure and within a domestic organisation--the distribution center, instead of a factory. The biggest waste issue with distribution centers is the excess inventory. That is where the inventory resides; it is not what caused it.

What the four-walls approach misses that the greatest amount of time, activity, and waste occurs beyond the warehouses, outside the four walls. Extending beyond the warehouse, where control is easier and there are fewer, different parties are involved, is the most important need.

Sometimes the challenges are not addressed or appreciated with lean supply chain management.

These include International sourcing: Procuring finished goods or raw materials outside of North America creates a significant obstacle to lean. The order-to-delivery time is long. Unnecessary time is a waste, and it compounds the inventory waste issue by making firms buffer and carry more inventory than is needed to compensate for the time. Being lean with a 20-50-day doorto-door transit time brings a unique test to developing lean SCM Accounting: Standard cost accounting and generally accepted accounting do not recognise waste as lean does. Not having financial support to waste and value identification makes lean difficult to implement and sustain. Inventory and time are not regarded as lean does. Too much inventory is not an asset for lean. Accounting systems do not recognise time.

Organisation silos: Supply chain management and lean are processes that cross organisation boundaries. Implementing a process that goes horizontal on a vertical and functionally defined organisation creates

gaps in both processes. These gaps create areas where waste can develop and where removing it can be difficult.

Add to it the fact that supply chains are not linear. There are supply chains within supply chains. There are many suppliers and many logistics service providers in a supply chain. Some of these are visible; some are less visible. Numerous suppliers or logistics service firms do not practice lean.

Taking lean outside the four walls of the company into other firms brings more global complexity into the challenge of gaining critical velocity.

So the challenge of lean is compounded when it comes to international. Many parties and trade partners are involved which challenges the abilities to remove waste from a supply chain that extends thousands of miles. For example, with an international transaction there are: *Different groups within the company buying the product who have a role in the movement of information and product *Different groups within the company selling the product who have a role in the movement of information and product

*Several outside organisations are involved, including:

`Suppliers Banks Cross border movement of inventory at origin Railroad or water transport at origin Trucking company/ies at supply origin to export port Port at origin Freight forwarder at origin 3PLs at origin Customs at origin Other government agencies at origin Ocean carrier, including possible multiple ones with movement of cargo Port at destination Freight forwarder at destination Customs at destination 3PLs at destination Other government agencies at destination Cross border movement of inventory at destination Railroad or water transport at destination Trucking company(ies) at destination port to delivery More

FEBRUARY 2019 59

LEAN LOGISTICS

Time compression creates opportunities to reduce inventory levels and logistics costs. However firms that do offshore sourcing are, by definition, adding time and, in turn, inventory.

The supply of supply chain management begins upstream. The import cycle time also affects the utility, value and placement of inventory. These affect customer service, sales revenues, inventory-to-cash cycle time and profits. Inventory improvements come from the need for less safety stock and faster movement through the supply chain.

Lean Determination

Add in the interchange of information between and among these various parties. The challenge is that each of these parties has a different role and responsibility. Each is working on the internal efficiency of their operation and not on the macro, efficient movement, with no waste, of your order/shipment.

The reality of business is that it is global with suppliers, plants and customers worldwide. These trillions of dollars international operating arena is a challenge for lean.

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Lean Benefits The benefits of lean for international supply chain management can be significant with managing the flow of products and information: 1. Compressed cycle times 2. Decreased days of inventory, better turns and sales yield maximisation 3. Reduced working capital for safety stock 4. Improved demand planning 5. Advanced supplier and supply chain performance 6. Enhanced customer service 7. Increased profits

To be lean, companies should assess their present operation. They must know how effective their practices are. The import supply chain must be analysed. Firms should define what is expected and then how well the present operation functions.

With the issue of velocity, emphasis should include the offshore supply chain process.

This means making sure that the operation uses a method, both internal and external.

Firms can confuse transactions with process.

A note of caution here—do not force your inefficient practices on external suppliers and logistics firms. This can compound the inability to be lean.

Two performance metrics should be used to assess the operation. One is the perfect order, namely that each purchase order is received complete, accurate and on time. This is clear as to what it means.

The other is deconstructing inventory turns, especially for the total purchase order to delivery cycle time. There are three parts to the offshore supply chainthe internal purchase order preparation, supplier performance, and logistics performance. The measure should include actions that trigger the purchase order and determine the need. Firms can waste time with the order activity. That lost time has an impact then on the suppliers’ abilities and logistics service providers’ capabilities to provide the perfect order.

Be aware of another time factor when orders are placed with firms who use offshore suppliers, contract manufacturing, and factories. Each additional link in this information and product exchange can add inefficiency to the cycle time and to the required lean result.