GLOBAL SUPPLY CHAIN JANUARY 2024 ISSUE

January 2024 Issue 109

ENHANCING THE BUSINESS OF LOGISTICS

Slimstock: Pioneering a sustainable and resilient supply chain Leveraging AI to improve efficiency and optimize the inventory IVECO Trucks

Retaining Leadership

EPG

Harnessing Automation

Hellmann

Disruptions to development

Drive the new way.

New IVECO T-Way: high productivity and safety on off-road terrains With a complete line-up of AWD and PWD versions and the the 16-speed HI-TRONIX automated gearbox, the IVECO T-Way features a host of functionalities such as Rocking Mode, Off-road Mode, Creeping Mode and 4 reverse gears to tackle with ease the toughest off-road conditions. The new architecture of the EBS system, combined with disc brakes on all wheels, greatly improves the vehicle’s performance and the driver’s safety in the most demanding applications.

New IVECO S-Way: high technology and efficiency for on-road missions The new IVECO S-Way, with a completely redesigned and reinforced cab, offers a wide choice of Euro III/V diesel engines, a delivering class-leading power from 360 HP to 560 HP Euro III / 570 HP Euro V and superior fuel-saving devices, such as anti-idling feature, Ecoswitch, Ecoroll and Smart Alternator, 12-speed HI-TRONIX automated transmission with the most advanced technology in its category, electronic clutch and best-in-class torque-to-weight ratio.

Comprehensive Warehousing Solutions Across Saudi Arabia Almajdouie Logistics presents an array of storage options strategically situated across Saudi Arabia. Our modern warehouses are thoughtfully designed to cater to a spectrum of storage needs, including dry, ambient, chilled, and frozen storage.

At the core of our warehouses lies a fusion of state-of-the-art technology and global standards, resulting in an end-to-end service. Almajdouie Logistics empowers you with superior command over the entire logistics process, guided by end-to-end services and executed by a proficient workforce. Our unwavering commitment to safety, punctual deliveries, exceptional client care, and a user-friendly dashboard for real-time stock visibility sets us apart.

Transportation

Freight Forwarding

Contact us

Customs Clearance

Warehousing

Terminal Handling

www.mlc.sa

Projects Logistics

Fat Pickings for Slimstock

SIGNATURE MEDIA FZ LLE P. O. Box 49784, Dubai, UAE Tel: 04 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: Johnson Machado johnson@signaturemediame.com Production Manager: Roy Varghese roy@signaturemediame.com

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By the time this edition hits the distribution networks, we are well and truly into 2024. So appropriately, I take this opportunity to greet our readers and associates a happy, successful and fulfilled New Year 2024!

For our First Cover Story of 2024, Global Supply Chain revisits the Netherlands-headquartered Slimstock, which according to the company’s stated profile has since 1993, been synonymous with better demand forecasting, effective inventory optimisation and supply chain collaboration.

We engage in an exclusive exchange with UAE-based Vice President Rachid Labrik on a wide range of issues and importantly his vision for the company’s technology solutions for the top, premium brands and e-Commerce organizations globally and the region.

Following Global Supply Chain’s representation in the IVECO Trucks’ International Media Meet in Barcelona, Spain in November 2023, we carry the transcripts of our exclusive interview with Shahram Falati, the company’s Business Director of Africa & Middle East.

Meanwhile, Germany’s Ehrhardt Partner Group (EPG) has been on an expansion spree with two recent client wins in two continents among others.

In this edition we highlight EPG’s association with long-established Australian national food importer Mayers Fine Food to implement EPG’s state-of-the-art LFS Warehouse Management System (WMS) and Transportation Management System (TMS) across its transport and distribution operations.

The second case study is the decision by Krefeld, North-Rhine Westphaliaheadquartered German Fressnapf Group to place its trust in both the LFS warehouse management system and the Timesquare supply chain control tower

by EPG. We spotlight both these EPG accomplishments.

Meanwhile, in the Kingdom of Saudi Arabia, Logistics Services giant Almajdouie has become the first national logistics entity to obtain an operational licence for hydrogen trucks from the Saudi Transport General Authority (TGA). This is a mega win for a company that has made sustainability and decarbonization the centrepiece of its CSR agenda and operational processes.

Elsewhere , we discuss the logistics-retail interface with Tushar Sharan, Regional Strategic Sales Director and Lead FMCG Vertical IMEA (India Subcontinent, Middle East and Africa), Hellmann Worldwide Logistics (HWL), in a recent exclusive interview with Global Supply Chain.

Add to this our regular repertoire of the latest news, topical features, profiles, business analyses, commentaries, professional contributions, Opinion-Editorials, and useful content all of which are well encapsulated and meticulously curated to make for stimulating reading!

Happy reading!

Malcolm Dias Editor, Global Supply Chain malcolm@signaturemediame.com JANUARY 2024 3

January 2024 Issue 109

14 Henkel Polybit Dammam KSA Etihad Airways 15 16 IVECO Trucks EPG 22 28 King Abdulla Economic City (KAEC) Slimstock-Bidfood 28 26 Almajdouie Logistics GWC Chemicals 30 Attaining Sustainability Circularity.

Harnessing technology.

Exclusive interview in Barcelona Spain.

06

Slimstock Robust regional expansion plans.

Two new wins in two continents.

KAEC-NAFL building partnership.

On the power of technology.

Debuting the first Hydrogen truck in KSA.

A new Chemicals Logistics facility goes operational.

32 34 Modern Warehouses Hellmann Worldwide Logistics 36 UD Trucks

Brand launches new ‘Driver Guard’ initiative

Thought Leadership—Khaled AlShami, Infor.

E-commerce and retail logistics in the spotlight.

42

Saudia Cargo Three-way partnership with Cainiao and WFS.

43 44Etihad Rail News 46

Transworld Group Strengthens presence in JAFZA.

Inks strategic partnership with ADNOC.

Up to date news of the Global Suppy Chain industry.

4 JANUARY 2024

GENERATION by

COVER STORY: SLIMSTOCK

The supply chain is top priority and high on the agenda throughout the Middle East and with good reason.

In the UAE, exports are expected to grow to US$ 299bn in 2030, while Saudi Arabia is expected to see exports surge to US$ 354bn, according to a recent Standard Chartered Trade Report.

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COVER STORY: SLIMSTOCK

Pioneering a dependable, sustainable and resilient supply chain

Supply chains, stressed with multiple disruptions today, can overcome hurdles with smart technology

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ndustry may be burdened with challenges and hurdles, but the future looks bright thanks to technology and technological breakthroughs.

Supply chain is the enabler of business strategies and can be a competitive advantage if managed well and can surely transform into a growth engine, asserts Rachid Labrik, Vice President MEA, Slimstock.

Supply chains are stressed today with many disruptions that can come in any shape or form. These are attributable to customer expectations and the rapid emergence of disruptive technologies.

Businesses in the Middle East, like its peers elsewhere in the world, have some significant hurdles to overcome. In this exclusive and wide-ranging interview with Global Supply Chain, Rachid Labrik reveals, among several other observations, why supply chain leaders must be proactive and prioritise eliminating waste and superfluousness to tap into the vast positive and remedial potential available.

Global Supply Chain (GSC): You are no stranger to the region. What drew you to finally make the move to the Middle East?

Rachid Labrik (RL): I have been working with different customers in the region before coming to settle down here. I love the hospitality and the warm relationships you can establish here. I wanted to get closer to my Arabic roots and experience more of these values.

Apart from these cultural and regional affiliations, there is also tremendous potential and growth opportunities in the Middle East. Coming here and being a part of it was a huge draw. It is a massively exciting time for the region. I am hopeful that my 14 years of experience helping businesses throughout Europe to create

Rachid Labrik and the CEO of Bidfood MEA, Hisham Aljamil, celebrating the start of Slimstock’s partnership with Bidfood MEA to streamline their operations. more effective and profitable supply chains, can help me make a significant and meaningful impact.

GSC: What are the biggest supply chain priorities in the Middle East?

RL: The Middle East is a region with a distinct geographical advantage. It is at the global crossroads. Not only is it an international and regional supply chain hub, but businesses in the region also play a pivotal role in other global supply chains.

Growth is very much on the cards throughout the region, and the supply chain is right at the heart of regional aspirations— the GCC and the wider Middle East.

However, business leaders must set the right foundations to unlock its full potential.

Long-term growth and prosperity should be the aim, but to realise both of those

ambitious goals, businesses need to focus on sustainability.

If you can build a future without waste and better optimisation of resources, your success will stand the test of time, and future uncertainties lie in wait around the corner.

GSC: You come from a technology background, with a degree in Machine Learning and AI. To what extent do you think technology is the key to businesses succeeding in the Middle East?

RL: Technology can be a massive differentiator, something that will only become more and more crucial for companies in the region who are looking to succeed.

Make no mistake, leveraging Artificial Intelligence (AI) and Machine Learning (ML) can unlock enormous opportunities for growth.

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COVER STORY: SLIMSTOCK

Rachid Labrik sharing his insights at the Saudi Retail Forum

The Middle East is an international and regional supply chain hub, but businesses in the region also play a pivotal role in other global supply chains.

The Big Four consulting and auditing corporations, Deloitte Touche Tohmatsu (Deloitte), KPMG International (KPMG), PricewaterhouseCoopers (PwC), and Ernst & Young (EY), and industry experts agree that technological transformation is necessary to stay competitive within the existing operational models. It should work hand in hand with your strategic vision and commercial expertise.

Let us look at e-grocery businesses as an example. AI powers the e-grocery industry.

Not so long ago, it was near impossible to maintain a profitable operation. Life was very different in the days before dynamic replenishment and automated fulfilment were made possible through the rise of sophisticated technologies.

Today, grocery businesses are embracing AI and Machine Learning to achieve stronger margins. More importantly, these

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businesses are doing this while delivering a better customer experience with less waste, less working capital locked up in stock, and less wasted talent.

Many companies are experimenting with AI-powered chatbots, personalized recommendations, and other applications.

More recently, ChatGPT and Open AI initiatives have opened new possibilities of applications of LLM (Large Language Models) in a number of areas–for both internal purposes and customer facing applications.

However, I am a firm believer in the notion that silver bullets do not exist. AI is no different. Indeed, AI can only bring value if the conditions in your business are optimised. You must first have quality data as a priority. And following that, you need a good level of maturity. Only when you have both in place can you begin to focus on value-added tasks.

So many companies look at automation to level up and rightly so, but without accurate, high-quality data, you could be making mistakes you do not become aware of until it is too late.

However, if you have the right foundations, you should look to automate everything you can. Augment planner’s intelligence with strategic automation, and a waste-free supply chain is a credible goal you can strive to achieve.

GSC: How else can businesses leverage technology to create a waste-free supply chain?

RL: In my opinion, technology exists to help us make better decisions faster. I believe supply chain technologies can act as a copilot for your supply chain operations.

Imagine a tool which can help you with the following responsibilities: Collaboratively align plans; budgets and forecasts with business strategy; streamline sales and operations planning; automate financial consolidation for joined-up planning; strategically close talent gaps for an empowered workforce; gain a comprehensive view of cash flow dynamics and provide instant access to

COVER STORY: SLIMSTOCK

OUR STRATEGIC PARTNER SUCCESS CYCLE Technology

Measure and Iterate

A dynamic development roadmap and robust deployment of regular 3-weekly updates

Process

Understanding your business goals and aligning KPI & KBI targets in Slim4, with regular reviews of performance

Success Cycle

Understanding the customer business processes and challenges to drive continuous improvement

People The passion for quality training and continuous development of Slim4 users

highly accurate demand insights through advanced predictive analytics.

That sounds incredible.

That is a tremendous amount of power to have at your fingertips. It might have sounded like a pipe dream not so long ago, but it is now fully achievable with the right technology partner.

GSC: What tips do you have for businesses to accelerate the adoption of innovative supply chain technology?

RL: To exploit the full potential of any technology or tool, we must have the right pillars to ensure its success.

The supply chain is no different. And your success will hinge on two critical factors: your people and your processes.

The processes should be designed to run efficiently and effectively, with correct inputs and outputs. They should be designed using the best practices.

To make this all successful, there should be clear governance, clear RACI (Responsible, Accountable, Consulted, and Informed) and RAPID (Recommend, Agree, Perform, Input, Decide), plans for learning and development and change management.

Mission Our mission is to maintain a trusted advisor relationship and deliver a world-class service to our customers

Customer Value Journey A scalable model built to support the ongoing growth and development of our customers

GSC: Can you elaborate on that? How can you empower your people to deliver better business outcomes?

RL: You must empower your people throughout your supply chain and create resilient processes. For the people part of the puzzle, you must be talent driven as a business.

That means that a focus on reinforcing technical and functional skills is critical. Train your staff, develop them, challenge them, and help them succeed beyond even their own expectations.

It also means hiring the right talent. Skill gaps in your business can mean a limitation to your immediate and long-term success.

Highlighting where these gaps exist and taking tangible steps to address them will be a cost-saving exercise that pays dividends down the road. You also need to think about automation.

Automation can become an asset for the business to help people. Automation can become an asset for the business to help people. Can you automate routine supply chain tasks so that your team can invest their time where it counts most? Can you automate your routine replenishment workflows without losing control? Can you

autonomously consider anticipated demand, promotions, events, and product scarcity?

If so, you will create unrivalled agility throughout your end-to-end network while delivering the service your customers deserve.

GSC: What role can Slimstock play in helping businesses sharpen their competitive advantage?

RL: I take great pride in the work we do both across the Middle East and further afield. As a global business, we support 1,500 customers across every discipline.

That is a huge responsibility and something which we take very seriously.

From helping businesses leverage the power of AI, to supporting supply chain teams to analyse and improve their operations, I am lucky to work for a company at the cutting edge of supply chain technology.

Our mission in the Middle East is simple: to ensure rapid adoption and seamless integration to help businesses unlock a return on their investment as fast as possible. We provide supply chain leaders with the knowledge, the robust insight, and the intelligent tools they need to enhance performance and enable continuous improvement.

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COVER STORY: SLIMSTOCK Profitability

Reduced Working Capital

Improve profitability with Slim4

Less holding costs Less waste

Less Inventory

Our solutions optimize demand forecasting, minimize waste with precision, and cut transport waste through consolidated orders.

Finally, we help our customers to stay at the top of their game by continuously enhancing our award-winning supply chain planning platform, Slim4, with the latest innovations.

GSC: Slimstock is already trusted by some of the biggest brands in the region. How will you help these businesses to move forward?

RL: We have established a fantastic customer community in the Middle East region.

But to help our ever-growing network of customers deliver long-term performance improvements, we are here to support every step of their customer journey.

That is why our customers play such

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Less Depreciation

More sales Better prices

More productivity

Reduced Costs Less claims and penalties

Improved Customer Service

Less handling Better use of capacity

Working More Efficiently

Improved Inventory Management

a crucial role in shaping our product development roadmap.

From helping our customers to advance the maturity of their S&OP (Sales and Operations Planning) and IBP (Integrated Business Planning) processes, to developing new and improved capabilities in areas like network balancing, consensus forecasting, rough-cut capacity planning and workflow management, we work with our customers to build the tools they need to unlock sustainable growth.

We also understand that the best lessons come from your peers. The Middle East is a melting pot of some of the brightest minds in the supply chain business. By bringing these people

together to share ideas and solve supply chain hurdles via our academy or industry events, we can make a real difference.

GSC: How does Slimstock look at Sustainability?

RL: The goal is to enable businesses to make environmentally conscious decisions in their supply chain processes, contributing to a more sustainable and eco-friendly approach to supply chain.

Our solutions optimize demand forecasting, minimize waste with precision, and cut transport waste through consolidated orders. Our aim is to drive profitability, efficiency, and sustainability at the same time!

Sustainable Supply Chain

Key aspects of a Sustainable Supply Chain 1

No more waste Both upstream as downstream in the Supply Chain

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Invoice earlier

Increased Revenue

Circular product design

Design products not only for the ‘use’ phase, but also for green production and recycling.

Optimised logistics

Sustainable transport, packaging, optimal planning.

Supply Chain partner collaboration

The biggest impact is in your supply chain; this means that managing your suppliers and customers is criticial.

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SPECIAL GSC CONTRIBUTION: EXPERT OPINION

The future of warehouse management can only be in the cloud

The case for multi-tenant cloud solution for very solid economic reasons

As in so many other areas of working life, digital transformation is clearly gaining momentum in warehouse management. The increasingly fast-moving market ensures that companies have to master more and more challenges, but a suitable infrastructure is indispensable for this, stresses Amir Adly, Senior Solution Architect, Infor, in this special contribution to Global Supply Chain.

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lassical on-premises IT systems are usually not even close to being able to do this – so what can be done if the company’s own intralogistics are not to be brought to its knees by the jumble of requirements? The solution to this problem lies in a multi-tenant cloud solution – for very solid economic reasons.

The world demands flexibility and speed The days when Toyota and other Japanese car manufacturers, for example, could organise their global supply chains so efficiently that they had to keep almost no storage capacity at all are probably over.

From the Tohoku earthquake and subsequent tsunami to the pandemic and the blockade of the Suez Canal by the stuck Evergiven to the Russian attack on Ukraine – the list of disruptive events in the last 10-15 years alone is long. In the future, too, the last

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word is probably not yet spoken in view of climate change as well as ESG requirements.

Flexibility is needed, and not only in the supply chain, but also in intralogistics.

It is no longer sufficient to rely on one or more specific suppliers who deliver larger quantities of known goods at regular intervals. In an emergency, it may be necessary to source smaller quantities from a variety of suppliers who may not even be known yet. Such back-and-forth is impossible to manage with a clunky oldstyle WMS that only runs on-premise.

Pushing Automation If necessary, it is also possible to additionally push the automation of one’s own warehouse systems, but this is expensive and only shows a real return on investment at a late stage. Relying on a modern, cloudbased warehouse management system

proves to be the better choice, and not only in this respect.

The topic of efficiency should be at the top of companies’ agendas. In warehouse management, the ability to work as personnel-efficiently as possible will soon provide a decisive competitive advantage amid a global shortage of skilled warehousing professionals – a situation that is likely to be exacerbated in the Gulf region due to the rapid growth of the warehousing and logistics sector. In this light, a modern cloud WMS ensures that all locations of a company are networked with each other.

Since modern cloud systems also support a variety of languages, professionals are able to support all branches worldwide, regardless of their location and without any loss of quality.

Those who are limited to only one location with an on-premises system are

SPECIAL GSC CONTRIBUTION: EXPERT OPINION

check every single adjustment.

If, on the other hand, a multi-tenant cloud solution is used, it is not only ready for use out of the box in the best case but is also maintained by the team of the respective provider. Updates and upgrades are automatically made available by the provider at set times.

This is also worthwhile in other ways: if a new location is being set up, the classic software implementation process is no longer necessary, because the software works almost immediately after the hardware is connected on site, which means that the branch office itself can also start operating promptly.

Security is everything-or is it?

When it comes to cybersecurity, the topic of the cloud also plays a major role – because here, too, a large IT team is needed to take care of the security of the internal infrastructure.

Despite the current news coverage, which reports successful cyberattacks on an almost daily basis, the topic still enjoys a lower priority, and companies rarely even have staff assigned solely to this area. The fact that classic business software is rarely designed for cyber security makes the situation anything but better.

In the case of cloud, on the other hand, no company has to worry about cybersecurity itself. And this is not even a matter of pure cost or personnel savings: the operators of the data centres in which the cloud customers’ data is hosted not only specialise in the best possible cybersecurity, but they also have the resources to maintain such an infrastructure in the first place like hardly anyone else. therefore also at a disadvantage in this respect compared to companies that are networked via the cloud. Only in this way is there enough computing power available to modernise at least parts of the warehouse management.

Investment The availability of systems on premise does not only demand a considerable commitment in the case of a WMS. This is because those who maintain their IT on site themselves must also invest accordingly in

personnel in order to be able to guarantee operation that is as uninterrupted as possible. Updates and unforeseen interruptions require that IT staff are always on site and, if necessary, carry out updates even while the system is running.

It is not uncommon for an on-premises solution to have been adapted to the requirements of the respective company during the original implementation. This then takes its toll when it comes to the challenge of installing an update, because the company’s own IT is forced to track and

Conclusion So, the more advanced, the better. Of course, there is still a long way to go to a self-managing, fully digitalised and automated warehouse. However, the first step is to optimise the existing warehouse operation. The keyword here, as so often, is ‘digital transformation‘.

A modern multi-tenant cloud WMS offers companies the chance to optimise and modernise their existing infrastructure and thus meet the challenges of the industry cybersecurity, skills shortages, disruption.

JANUARY 2024 13

HENKEL

Henkel Polybit Dammam achieves sustainability and circularity milestone Attains circular manufacturing hub status for waste material in the region Henkel Polybit Dammam has achieved full circularity for waste material at its manufacturing site in Dammam, Saudi Arabia. This milestone marks the first fully circular use of production waste material for Henkel in the India, Middle East and Africa region, underlining the company’s long-term commitment to sustainability and innovation.

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he Henkel site team has spearheaded a state-of-the-art solution to boost circularity, leading to the recycling and reuse of production waste in the manufacturing process. This will affect hundreds of metric tons of waste annually, with 700MT of waste generated in 2022 and approximately 600MT in 2023.

“This fully circular production waste recycling process in Dammam sets a new standard for sustainability in the IMEA region. We are proud to be at the forefront of circular practices, aligning with Henkel’s global sustainability goals. This lighthouse and frontrunner project actively shapes a model for the IMEA region, reinforcing Henkel’s commitment to a greener, more sustainable future,” affirmed Simon Ulmann, Vice President, Operations and Supply Chain, IMEA, Henkel.

New Path “The urgency of addressing climate change is front of mind for Henkel, and our team at Henkel Polybit Dammam has displayed ingenuity in charting a new path towards circularity for waste material. We aspire that this innovative move sets a precedent, creating a ripple effect in the IMEA region and beyond, to help advance in waste management towards a more circular economy,” emphasized Dimitri Kozak, Head of Sustainability and Environmental Performance, Henkel Adhesives.

In the new closed-loop system, the production waste undergoes meticulous grinding and homogenising, ensuring the purification, uniformity and quality of

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products at the Henkel Polybit Dammam Site, a corporate press communique stated.

Globally, Henkel’s sustainability strategy aims to achieve climate-positive operations by 2030. The Dammam facility’s success is a testament to Henkel’s commitment to circularity, contributing to the goal of having all global sites be climate-positive in seven years. The company plans to source 100% of its electricity from renewable sources, implement state-of-the-art technologies for thermal energy, and achieve circular water use at key manufacturing sites, the press statement continued.

Zero waste This also comes as part of Henkel Adhesive Technologies’ continuous efforts to enhance waste disposal methods. Currently, 85% of all adhesive manufacturing sites have achieved zero waste to landfill status

(ZWTL). To minimise the impact on local environments, Henkel works to ensure key manufacturing sites save and reuse water through a process optimisation and wastewater treatment.

As Henkel embraces the challenge of becoming climate positive by 2030, its accomplishments signal a significant step forward in a mission to support regenerating the planet, help communities survive and be a trusted partner in building a more sustainable tomorrow, the press note concluded.

Henkel, is a German multinational chemical and consumer goods company headquartered in Düsseldorf. Founded in 1876, the DAX company is organized into two globally operating business units (Consumer Brands, Adhesive Technologies) and is known for popular brands such as Loctite and Persil.

ETIHAD AIRWAYS

Etihad Airways pioneers advanced AI solutions to enhance Safety Management systems

This initiative is part of a partnership with the MBZUAI to introduce AI-powered solutions

Etihad Airways, the national airline of the UAE, has become one of the first airlines to use Artificial Intelligence (AI) to enhance safety management systems, elevating them to an advanced level of sophistication. This strategic move signifies the airline’s commitment to enhancing safety protocols through cutting-edge technology.

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his initiative by Etihad Airways to adopt AI in its operations is part of a partnership with Mohamed Bin Zayed University of Artificial Intelligence (MBZUAI) to establish joint training programmes, research exploration, and develop AI-powered solutions to support and enhance Etihad’s world-leading safety processes.

Etihad’s AI-powered platform collects and analyses data including flight reports, maintenance, and training activities to accelerate and refine existing safety processes.

Enhancing safety performance “Safety is our top priority at Etihad Airways.

Etihad is constantly exploring innovative ways to enhance our safety performance; we believe the integration of Artificial Intelligence is a significant leap forward in this direction and is set to be a game-changer in aviation,” asserted Mohammad Al Bulooki, Chief Operating Officer, Etihad Airways.

“We always explore innovative approaches and partner with leading educational institutions to empower the next generations with tangible experiences within the aviation industry. This AI-powered system is a testament to the success of our collaboration with MBZUAI and wider strategy to support Abu Dhabi’s vision,” commented Mohamed Hasan Al Mansoori, Vice President Emiratization Strategy & Government Relation, Etihad Airways.

Since the agreement with MBZUAI was signed in July 2023, Etihad had trained five interns in various business divisions including Flight Operations, Revenue Enablement and Human Resources. Etihad had also welcomed eight Emirati graduates through its internship programme, Bedayati, meaning ‘my start’ in Arabic.

Etihad Airways and China Eastern Airlines ink strategic cooperation MoU Agreement signed by both airlines in Shanghai, China Etihad Airways and China Eastern Airlines signalled their intent to strengthen their partnership by signing a recent Strategic Cooperation Memorandum of Understanding (MoU), to enhance commercial and operational ties.

The accord reflects a commitment to explore a deepened co-operation that will provide travellers with wider choices, higher quality services, and increased value, while contributing to sustainable aviation.

Building upon their successful existing partnership, the airlines plan to implement a broad collaboration including an expanded codeshare, reciprocal loyalty programmes, cargo transport, maintenance, repair and

overhaul, ground handling, catering, lounge access, staff training, and several sustainability initiatives.

“Our two airlines have operated an enduring partnership for over a decade.

This MoU is an important milestone and a key to establishing a long-term mutually beneficial cooperation,” observed Antonoaldo Neves, Chief Executive Officer, Etihad Airways.

“The MoU builds upon our existing co-operation. It makes possible an agreement that would allow us to collaborate in real and practical ways as part of the continually flourishing relationship between China and the UAE,” remarked Li Yangmin, President, China Eastern Airlines Group.

JANUARY 2024 15

IVECO REFORMATION

IVECO in high gear as it strives to retain its leadership in road transportation Innovation and technology are at the root of the new IVECO branding

IVECO has renewed and upgraded its entire product and service range for the first time in its history with the biggest investment ever made. This unprecedented launch is the outcome of IVECO’s strategy to drive the change, built on the brand’s four fundamental pillars of Business Productivity, Sustainability, Driver Experience and Connectivity.

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VECO presented the regeneration of its complete product range and service offerings to an elite, global audience comprising customers, dealers, partners and the international press at a recent launch event held in Barcelona, Spain, the fabled capital of the country’s Catalan region.

Global Supply Chain attended this milestone event as a privileged media invitee.

The theme of the event, ‘BE THE CHANGE,’ is an invitation and call to join IVECO in embracing change to win the challenges of the future. In the past four years, the brand has dedicated its energy and resources to anticipating the rapid evolution of the market. It has invested substantially in renewing its products based on customers’ needs and expectations, accelerating innovation through partnerships with bestin-class industry players.

Furthermore, it has become more connected to the customers’ businesses by building a 360-degree ecosystem around their vehicles and requirements, taking another step forward in its innovation strategy. In a highly dynamic industry, IVECO has quickly evolved to become the trusted partner of its customers, supporting them as they address change and successfully overcome challenges.

Global Supply Chain exclusively interviewed Shahram Falati, Business Director of Africa & Middle East, IVECO, on the sidelines of the recently concluded Barcelona launch event.

Global Supply Chain (GSC): We are here in Barcelona, the famed capital of Spain’s Catalonia and leading international Convention Centre. What is the intent and overarching corporate message of IVECO at this venue?

Shahram Falati (SF): For the very first time in its history, IVECO has reviewed and renewed its entire product and service range at the same time as the biggest investment ever made. The event organized in this venue is a clear sign to underline the intent of our company to enter the future with a state-of-the-art range, completed by the most extensive set of services.

We wanted to make a change and we also did so through the launch of our new brand identity characterized by the new

JANUARY 2024 17

IVECO REFORMATION

Eurocargo, the multi-mission truck logo with the flash of blue that embodies the concept of this transformation.

GSC: Briefly, walk us through IVECO’s corporate history from inception to the commercial vehicles’ colossus and eminent brand name that it is today?

SF: Long-established, IVECO has more than 150 illustrious years of history. All begun in 1864 when Conrad Magirus, a German fire brigade pioneer and entrepreneur, started his company and afterwards in 1929 FIAT decided to separate its trucks business from automobiles and founded Fiat Veicoli Industriali.

In 1975, IVECO was created by FIAT to merge operations of several truck brands, arriving year after year to become now one of the major brands of Iveco Group, established on 1 January 2022, following the spinoff from CNH Industrial, the large ItalianAmerican industrial conglomerate.

In other words, IVECO has been a world leader in road transportation since 1975, offering an extensive range of light, medium, and heavy commercial vehicles for on-road and off-road use.

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With the launch of the MY24 range and the new brand identity, IVECO wants to highlight how it moves forward to serve a rapidly evolving modern society while maintaining a strong connection with its solid roots.

All of that is represented by the new logo, which standing tall in black, expresses the brand’s dynamism and innovation always maintaining a proud link with the brand’s history: a flash of light in the blue energy color at its heart represents the crossroads between IVECO’s heritage and its new energy future.

GSC: Encapsulate IVECO’s antecedents in the Middle East and East Africa and how has the brand has grown and evolved since inception? How is the brand positioned in the region?

SF: IVECO’s presence in Africa and the Middle East can be dated at the early 1960, drawing on an important and rich heritage back to the Fiat 682. Since then, our presence in the region has been growing more and more thanks to our

high guarantee of quality and reliability.

Today, the Middle East is a crucial area due to its strategic position and plenty of natural resources.

The major markets in the region are Saudi Arabia, UAE, Oman, and we have potential growth in as well in other markets such as Iraq. We have long-lasting relationships with many customers in the region because IVECO is trusted and appreciated for the reliability of its vehicles and the professionalism of the team.

GSC: How has IVECO performed thus far in this region in 2023; what is your prognosis for the remainder of 2023 and how does that compare with 2022?

SF: In 2023, results in the Middle East and Gulf region were good. We had a notable increase in the UAE and Saudi Arabia; we have now also started assembly operations in the Kingdom.

We have revamped the operation in Oman with our new partner Muscat Overseas, and we are already attaining good results. Overall, our sales increased by around 30% YoY compared to 2022.

GSC: What is your range of commercial vehicles; what are some of your recent introductions and which are among your top selling models in the region?

SF: IVECO product line-up is divided into Light, Medium and Heavy ranges.

The IVECO Daily is the milestone of our Light Commercial Vehicle sector; it is the perfect solution for getting the most demanding jobs done easily and efficiently, saving time, and improving profitability.

Moreover, in Euro V countries the IVECO Daily is equipped with the Hi-Matic 8-speed automatic transmission, which is the only and exclusive offer in the market.

The Eurocargo, a modern and dynamic vehicle of the medium range, thanks to its outstanding adaptability to every requirement with over 11.000 variations, is the perfect multi-mission truck for municipalities, light construction, and logistics. However, without doubt, the Heavy Range ‘DRIVE THE NEW WAY’ is the perfectly suited offer for all the markets in Middle East and the IVECO S-Way and

the IVECO T-Way are the best sellers in the region.

Both recently renewed in a driver optic, the IVECO S-Way is the ideal on-road truck for the fleet owner and thanks to the new design, achieves superior aerodynamic performance and delivers fuel savings of up to 4%. The IVECO T-Way is the best-in-class performer in every off-road mission, being the ideal solution in the Middle East for oil, gas, construction, and off-road logistics.

GSC: What prospects do you foresee for these models in the region in the foreseeable future?

SF: After the introduction of the Heavy Range in Middle East, we are already having positive feedback from our customers, and we are expecting a very sensitive and positive sales increase starting from 2024.

In addition, we are improving our market penetration in the Light Range with our New IVECO Daily in UAE & Saudi Arabia and, concerning the medium range, our Eurocargo is market leader in the 4x4

segment in Abu Dhabi Region.

GSC: What are your expansion plans for the region, and do you have / plan to set up a manufacturing plant in the region?

SF: Our expansion plans are to increase our network, through our existing dealers. We are planning to have three additional 3S facilities in 2024. In the Middle East, we are already assembling our vehicles in Saudi Arabia and year after year expanding on the assembled models.

GSC: What opportunities and challenges for the present and future do you foresee going forward?

SF: We are expecting new regulations in most of the GCC countries. UAE already announced a new regulation on loads starting from February 2024. Saudi Arabia will move to Euro V in 2024 and we are expecting that also in some other countries new regulations will be applied. We will be ready with our new Way Range to satisfy all new requests and requirements.

IVECO Daily Cab & Van JANUARY 2024 19

IVECO REFORMATION

GSC: Recently, IVECO and Muscat Overseas Equipment and Trading Company LLC (MOET), the IVECO distributor in the Sultanate of Oman presented the new IVECO Heavy Range, launching the IVECO T-Way. Please comment on this landmark event in Muscat.

SF: Recently, on 7 November 2023, we presented the new IVECO Heavy Range, launching the IVECO T-Way in the Sultanate of Oman and this event was the opportunity to officialize our partnership with MOET for the very first time in a public event after the dealership stipulated on the 14th of December 2022. The event was a success, with the participation of more than 200 guests, included not only customers but also local authorities and the Italian Ambassador in Oman.

On one hand, this event let us confirm our aim to consolidate the IVECO presence in the Middle East through an excellent after sale services and commercial coverage; on the other, thanks to the IVECO T-Way introduction, we brought into the market a new generation of advanced solutions as fuel efficiency, versability, performance, and livability.

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GSC: What are your brand strengths and how are you leveraging these to gain a larger market share?

SF: Talking about the Middle East we have good network coverage in all GCC countries and Middle East. This ensures our customers’ parts availability and quick assistance. Another strength is our product range, we have a full line-up, with the latest technologies, which assures a better Total Cost of Ownership.

GSC: How is the harnessing of new automotive technologies impacting and changing the face of new IVECO commercial vehicles?

SF: Electricity and advanced technologies are surely the two main pillars on which IVECO bases the innovation processes. It is noteworthy that we started to offer vehicles already compliant with Euro V emissions levels four years before the mandatory introduction date, which currently offers a wide range of products conforming to the EEV (Enhanced Environmentally Friendly Vehicle) standard, the most stringent available European standard.

As for IVECO, we always keep in mind for the product development four main categories: productivity, safety, performance, and environment in order to offer increasingly advanced and environmentally friendly products for all ranges and missions. Last year, we launched the IVECO eDaily in Europe, the Daily electric twin, enables zero-emissions without compromising on vehicle capabilities.

For the heavy range, instead, in 2019 we stipulated a partnership with Nikola Corporation, an American Company specialized in producing green energy vehicles, and now we recently assumed full ownership of this joint venture in Ulm, Germany for the European market.

Finally, the latest collaboration to deploy the zero emissions ranges involves GATE (Green & Advanced Transport Ecosystem), through which we can offer an innovative all-inclusive pay-per-use business model for the long-term rental of electric commercial vehicles.

IVECO T-Way

IVECO REFORMATION

IVECO S-Way GSC: Do you customize vehicles for specific clientele?

SF: Of course. We have a dedicated department that manages the relationship between customers, dealers and bodybuilders to match the best solution both in terms of product and economics.

Our main goal is to offer the perfect vehicle for each customer need and demand in every country of Middle East and thanks to our wide product line-up we can cover all type of missions going from logistics and transport to construction, oil and gas, municipalities, and tenders.

GSC: How would you describe your partnership with your dealers in the region?

SF: In some markets, the relations with our dealers are very consolidated. We have some partnership 40 years old. This shows the excellent relations due to the professionalism of our partners.

Some other relations are more recent, but overall, we are very satisfied with our dealers. We are close to our dealers in the Middle East thanks to our representative office in Dubai.

GSC: Are you more optimistic about increased sales in the face of presently falling fuel prices & are you also exploring alternative fuels like hydrogen or hybrid engines (electric / diesel), bio-LNGpowered trucks? Also, tell us about your CSR (Corporate Social Responsibility) activities particularly in the light of the growing public concern about sustainability / vehicle pollution, netzero emissions, and its impact on the environment?

SF: IVECO’s vision is to develop modes of transportation that reach their destination in the most efficient, ecological, and safe way. The company places an emphasis on its innovation practices to continuously improve and enhance its technologies.

Nowadays, it’s important to protect the ecosystem, and sustainability is the priority in our sector.

IVECO, indeed, is committed to paving the way for the decarbonization of transport, developing alternative drive systems for over 30 years. Our company is the European market leader in natural gas commercial vehicles and the only manufacturer to offer ecological diesel and natural gas engines for

its entire range of vehicles.

In addition, with the new range MY24 it’s clear that IVECO has developed electric versions of its light and heavy ranges while continuing to improve its internal combustion engine vehicles, including those running on natural gas, to reduce their environmental impact.

GSC: What are the ambitions, wider vision—both long term and short term, for IVECO in the region?

SF: Our vision is to have a wider penetration in all markets. Looking at the light range, our IVECO Daily is best in class in terms of performance, and we noticed that markets are looking more and more for vehicles that are performing having a low fuel consumption. We aim to increase our Daily market share in the region.

However, in the region we are historically best known for our heavy range products, we aim to consolidate and grow this presence with our new heavy range, both IVECO S-Way (long haulage) and IVECO T-Way (off road missions). Our Way range has many possibilities of configurations and can fully satisfy the request of our customers.

JANUARY 2024 21

EPG CASE STUDIES

EPG serves up warehouse and transport automation spread for Mayers Fine Food down under

EPG announces another major client win for its fast-growing Australian division.

Long-established Australian national food importer Mayers Fine Food is to implement EPG’s state-of-the-art LFS Warehouse Management System (WMS) and Transportation Management System (TMS) across its transport and distribution operations.Global Supply Chain examines two case studies comprising EPG’s clients in two continents for the lowdown on the expertise and capabilities of the supply chain software company that transformed the operations of the companies to become pioneering success stories. We bring their narratives.

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his newly forged partnership by global supply chain software leader Ehrhardt Partner Group (EPG) and Mayers Fine Food will enable the Australian food brand’s fabled efficiency and customer service to meet the challenges of a fast-changing food and beverage economy, both now and in the future.

The double signing underlines EPG’s growing status as the provider of choice for supply chain software across entire company ecosystems.

Automation speed and accuracy The pairing of the two products will lead to a step change in the speed and efficiency of Mayers’ operations. The WMS will automate and streamline processes at the company’s two distribution centres (DCs) in Sydney and Melbourne, while the TMS will enable faster, more accurate and sustainable transport operations across the country, as well as the further bonus of improved communications with drivers, receiving docks and customers.

EPG employs over 900 people at 23 locations around the world. And provides its more than 1,600 customers with WMS, WCS, WFM, TMS and voice solutions to optimize logistics processes – from manual to fully automated logistics environments.

Both systems will be backed up by EPG’s intuitive and easy-to-use analytical dashboard, which offers a broad operational overview as well as precise real-time reports and updates to Mayers staff.

Banksmeadow, New South Walesheadquartered Mayers Fine Food is Australia’s leading importer and distributor of food delicacies and specialty products from all around the world.

They import over 2000 premium food and beverage products and distribute nationally to supermarkets, retailers, wholesalers, hotels, restaurants, delicatessens, manufacturers, shipping providers and airline caterers. Their product range includes cheese, butter, water and beverages, frozen lines, dry goods, seafood, chocolate, patisserie ingredients, coffee and pasta to name a few.

Single-source unique capability In 2022, the company’s continuing success in a fast-changing economic landscape led it to address the growing complexity of its distribution and transport operations.

After a competitive tender process, EPG’s LFS (Logistics-Focused Solution) was selected ahead of WMS rivals because it is

best able to demonstrate a broader range of key features capable of addressing critical operational requirements for Mayers.

Batch and lot tracking, random weight capture and multiple order handling are just three of the many functionalities which support Mayers’ specific needs.

Meanwhile, EPG engineers and project specialists were able to demonstrate to the Mayers team the unique value of a single-source supply chain software suite. EPG’s TMS interweaves with LFS to allow a seamless product journey from storage to distribution to customer, with the benefits of continuous product and shipment tracking.

Route optimisation Route optimisation enables transport managers to oversee the automated selection and allocation of transport routes to suit specific criteria, such as speed, number of stops, fuel miles and carbon emissions. Everything is overseen

by EPG’s TIMESQUARE, a control tower dashboard providing access to real-time reports and updates that contribute to a full bird’s-eye view of the transport and distribution state of play.

JANUARY 2024 23

EPG CASE STUDIES

“We were looking for an automation system that would equip us for the challenges and opportunities of today and the future in the food and beverage industry,” commented John Aerlic, Head of Operations, Mayers Fine Food.

“EPG has given us a very satisfying double helping, with warehouse and transport systems that we expect to have a significant positive impact on our service to customers, efficiencies and, ultimately, our bottom line,” he added.

Breakthrough EPG is delighted with the start it has made since opening its Australia office in 2022.

“We are excited to be supporting Mayers Fine Food on the next stage in their growth,” remarked David Archer, Head of Sales, Australia & New Zealand.

“We are confident that our solutions have the best answers for customers in Australasia, as they continue to do for our global client base in Europe, the Americas and Asia,” he continued.

System integration discussions have now begun, with a smooth implementation process expected by all parties. Further potential efficiency optimization between the partners includes LYDIA Voice picking solution.

EPG – Smarter Connected Logistics EPG is a leading international provider for a comprehensive Supply Chain Execution Suite (EPG ONE™) and employs 900 people at 23 locations around the world. The company group provides its more than 1,600 customers with WMS, WCS (Warehouse Control Systems), WFM (Workforce Management), TMS and voice solutions to optimize logistics processes – from manual to fully automated logistics environments.

EPG solutions cover the entire supply chain: From warehouse and road to ground and cargo handling solutions at airports.

With the EPG AES™ Aviation Execution Suite, EPG offers an all-in-one solution for airport logistics and ground handling.

Logistics consulting, cloud services, managed services and logistics training courses at the company’s own academy round out the comprehensive list of solutions from EPG.

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Case Study 2:

Fressnapf Group

All-in-one dashboard displays all relevant warehouse logistics data Timesquare enhances transparency and process reliability at Fressnapf

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ogistics providers need to process large quantities of data every day to control their material flow efficiently.

The Krefeld, North-Rhine Westphalia headquartered German Fressnapf Group supplies more than 1,800 branches and regional warehouses in eleven European countries from its central warehouse in Krefeld. This requires efficient, forwardlooking warehouse management.

That’s why Europe’s market leader in pet supplies places its trust in both the LFS warehouse management system and the Timesquare supply chain control tower by EPG (Ehrhardt Partner Group).

The all-in-one dashboard serves as a cockpit for process monitoring, displays all relevant figures and thus helps to ensure greater flexibility during everyday logistics operations.

First Timesquare client The leading pet supplies provider was the first Timesquare client to introduce the dashboard in its automatic small parts warehouse at its Krefeld central warehouse back in 2018. In the future, user-friendly dashboards will be used in the entire central warehouse and then also gradually introduced in the regional warehouses.

In 2015, Fressnapf decided to replace its manual small parts warehouse with an automatic one with three aisles and storage spaces for around 80,000 containers. This was due to an increase in customer demand for toys, pet food, dog clothing, care products and other pet accessories.

A forwarding system handles picking, carrying the boxes to different picking stations automatically once an order

has been placed. In addition to the currently eighteen pick-by-light stations, there are also two pick-to-tote stations.

This automatic small parts warehouse is currently being expanded.

Timesquare reduces costs and minimises risks As its order volumes increased, Fressnapf was finding it increasing more timeconsuming to obtain maximum transparency for material flows. “We had to compile the current figures from different menus by hand and analyse them individually. That not only took considerable time; it was also prone to errors,” stated Larissa Strippel, Project Manager, Logistics Systems, Fressnapf.

Timesquare provides an overview of all relevant key figures The central dashboard delivers forecasts, status reports, and, importantly, reliable data on the individual warehouse processes in real time. In this way, the control centre receives a continually updated overview and can intervene in picking faster if necessary.

“Timesquare enables us to monitor our processes and KPIs in logistics in real time. As a result, we receive active support for everyday logistics operations, create transparency and save time and costs considerably,” explained Strippel further.

This big data solution enables Fressnapf to reduce costs, minimise risks and increase productivity based on targeted analyses. Timesquare provides information on the order status and commissioning automatically and presents it in a transparent format.

Picking aisles in small parts warehouse feature dashboards The retail chain started with a dashboard to control material flows in its small parts warehouse control centre back in 2018. The picking aisles in the central warehouse are now also equipped with a control tower.

As a result, Fressnapf increases employee autonomy and efficacy significantly since employees can now immediately see which

picking point needs them the most. This eliminates unnecessary walking distances and detours. As the dashboard is hosted online, new users and other departments can be easily added at any time.

Timesquare encompasses everything from incoming goods and monitoring various logistics areas through to transport systems, loading gates and shipment.

The clearly organised dashboards can be custom-configured to meet the users’ specific needs.

EPG LFS WMS Fressnapf has been using the EPG LFS warehouse management system for more than ten years now. It also benefits from the LYDIA Voice pick-by-voice solution, the WCS warehouse control system, the TMS transportation management system, and the WFM workforce management system, which was developed in a joint project between EPG and Fressnapf.

The different software solutions can be easily connected to Timesquare thanks to the close integration between the control tower and the EPG ONE suite. The control tower has been further developed in close cooperation with Fressnapf on a continuous basis. This is also why warehouse management has progressed from a static solution to a dynamic one.

Third-party software in new shuttle warehouse can also be integrated The pet supplies specialist is currently expanding its small parts warehouse.

Shipping is also being upgraded to include an efficient shuttle warehouse system.

Controlled by a third-party software, the new shuttle warehouse is where the completed shipment boxes are buffered, sequenced and then automatically palletised.

This warehouse will also be connected to Timesquare. “At the moment, we are still working with individual shipment conveyors. Our employees have to lift the boxes physically, place them on their intended pallets and then secure the shipment by hand. We will make this work step easier by automating the shipment area significantly, thus alleviating our employees,“ noted Strippel.

“Timesquare will allow them to organise their work themselves and keep track of their successes,” affirmed Strippel. In the next step, Fressnapf will be incorporating incoming goods, technical incident handling and the large parts warehouse.

A third-party material flow computer is also being integrated into the new shuttle warehouse, Strippel concluded.

JANUARY 2024 25

DESTINATION SAUDI ARABIA—INVESTMENTS

Attracting Big Ticket Investments in Saudi Arabia Investment frenzy in Kingdom hits fever pitch

Saudi Arabia’s ambitious ‘Vision 2030’ is building and driving a dynamic and diverse economy, initiating growth in new industries, attracting investment, and providing entrepreneurs with the resource and tools for success. It now appears all roads are heading to Riyadh.

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oung Saudis now have a world of opportunity at their fingertips – the economy is transforming the Kingdom, delivering social reforms, entertainment and sporting events, and projects that inspire new ways of living and working.

The government is fostering an open, investor-friendly, welcoming economic environment that attracts foreign investment and supports local talent through progressive regulations and reforms. The success of Saudi Vision 2030 is powered by the ambition of entrepreneurial citizens who are starting businesses, driving growth in the private sector, and paving the way for the future.

Innovative funding strategies With innovative funding strategies, supportive regulations, and talent development programs, Vision 2030 is shaping the future of Saudi Arabia, ensuring

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a bright and prosperous future for all, a post on the official website confirmed.

The current vibrant business landscape of Saudi Arabia stands as a testament to its incontestable appeal for entrepreneurs and investors alike. Setting up a business in the Kingdom is not just a strategic move; it is a potential game changer. Saudi Arabia boasts a myriad of advantages, each contributing to an environment ripe for success.

Saudi Vision 2030 Under the prudent leadership of the Custodian of the Two Holy Mosques, Vision 2030 was launched for the Kingdom of Saudi Arabia.

A roadmap was singularly and meticulously drawn up by HRH Crown Prince Mohammed Bin Salman, to develop and diversify the economy and reduce the dependency on oil, by building on several economic and financial reforms, which aim to transform the structure

DESTINATION SAUDI ARABIA—INVESTMENTS

of the Saudi economy into a diversified and sustainable economy.

The new paradigm is focused on enhancing productivity, increasing the contribution of the private sector, and empowering the third sector.

KAEC A seminar was recently convened and facilitated in Dubai by King Abdullah Economic City (KAEC) and the National Association of Freight & Logistics (NAFL). It attracted considerable interest as potential investors and business mulled the possibility of attracting capital into the Kingdom.

A variety of issues were covered and discussed—the current investment ambience, the sops, tax rebates and tax holidays for companies moving their regional headquarters (RHQ) to the capital Riyadh, facilities and infrastructure offered by the Government and a general overview

of concessions and streamlined direct and indirect taxes.

Ghadah K. Hefni, Partnership Manager, Industrial Valley, KAEC, visiting the UAE on this occasion, made the case and pitch for investing in the Kingdom. “The recent developments in FDI align with Saudi Arabia’s Vision 2030, which aims to increase FDI’s contribution to the country’s gross domestic product from 3.8% in 2016 to 5.7% by 2030.

The data also showed that Saudi Arabia’s GDP grew by 3.8% in the first quarter of the year compared to last year and continues to be in growth mode,” affirmed Ghada Hefni.

The Saudi government has taken further steps to improve the country’s investment climate to attract foreign investors. To that end trade key enablers and facilitators in the UAE including NAFL will fully support and collaborate with their Saudi counterparts in realizing the Kingdom’s investment and economic goals.

JANUARY 2024 27

ALMAJDOUIE LOGISTICS

Almajdouie Logistics unveils Saudi Arabia’s first hydrogen truck Almajdouie Logistics unveils Saudi Arabia’s first hydrogen truck

Saudi Arabia’s giant Almajdouie Logistics is the first national logistics entity to obtain an operational licence for hydrogen trucks from the Saudi Transport General Authority (TGA).

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audi Arabia’s transport regulator, the Saudi Transport General Authority, stated that the new hydrogen truck is distinguished by the fact of having zero carbon emissions, which contribute to achieving the objectives of the National Strategy for Transport and Logistics, in addition to Saudi Arabia’s initiatives for sustainable development.

Long distances The truck is designed and equipped to transport goods in accordance with the safety conditions, TGA said, noting that it covers long distances exceeding 400 km.

28 JANUARY 2024

Another characteristic of the truck is that it is supplied with hydrogen as fuel with a capacity of up to 35 kg and a gas pressure of up to 350 bar.

This comes within a strategic partnership between Almajdouie Logistics and Air Products Qudra Company to provide integration solutions for hydrogen trucks in terms of operation and hydrogen fueling.

This comes with the aim of building an ecosystem for hydrogen transportation in the Kingdom to offer integrated solutions to interested parties and enhance hydrogen transportation by trucks within Saudi Arabia.

Ambitious study

Operating Licence

Sustainable future

TGA stated that the agreement includes design, financing, construction, operation and maintenance of hydrogen-related infrastructure, in addition to the hydrogen refuelling stations available in different locations in Saudi Arabia. This ambitious feasibility study is in line with the Kingdom’s Vision 2030 and the Saudi Green Initiative.

Almajdouie Logistics has obtained the first operational card for the hydrogen trucks in Saudi Arabia, which was issued via the Naql e-platform. The goal of issuing the operational card includes providing all information related to the trucks, ensuring commitment to all conditions and offering all the technical requirements.

It also includes efficiency and quality of services in the logistics sector, preserving public safety, enhancing traffic safety, in addition to achieving the goals of the National Strategy for Transport and Logistics.

The inauguration comes as an extension of TGA’s adoption of a number of modern and innovative technologies in the transportation system.

TGA has handed over the first operating licence for the hydrogen train to Saudi Arabian Railways (SAR), which is characterized by being free of carbon emissions, to support the sustainability in the transportation sector with services that contribute to reducing carbon emissions.

As part of its vision for a sustainable future, Almajdouie Logistics will collaborate with Al Jubail, Saudi Arabia-based Air Products Qudra Company to enhance the hydrogen transportation sector. The company’s focus includes infrastructure development and the establishment of refueling stations across the Kingdom.

JANUARY 2024 29

SAL SAUDI LOGISTICS SERVICES

GWC launches chemical logistics in industrial area Customised facility built specially for chemical storage and distribution

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WC, Qatar’s premier logistics and supply chain solutions provider, recently announced the inauguration of its latest logistics centres built specially for chemical storage and distribution centre located at Logistics Village Qatar in the Doha Industrial Area.

The 16,000sqm facility, which has received certifications from Qatar Civil Defence Department (QCDD), the Ministry of Interior, and the Ministry of Environment & Climate Change, will cater for a host of clients in the manufacturing, contracting, automotive, and research and development industries, among others, according to a corporate press communique.

Gas storage The facility features both chemical and air-conditioned pallet storage, suitable for storing gases, flammable liquids, flammable solids, oxidising agents, toxic substances, corrosive substances, and dangerous goods.

“GWC is proud to unveil this new facility, which will cater for a range of clients across different industries in Qatar. The strategically located warehouse and distribution centre will boost numerous businesses, including a host of micro, small, medium, and large enterprises,” explained Ranjeev Menon, Group CEO, GWC. “This is yet another milestone in the GWC journey as we

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consolidate our position as the leading logistics and supply chain solutions business in Qatar,” he continued.

Safety features A host of health and safety features have been implemented at the warehouse, including ATEX-certified explosion-proof electrical and mechanical fittings. The temperature at the warehouse will be maintained at 20°C by a water-cooled air conditioning system.

Fire mitigation measures include early suppression fast response roof sprinklers, beam/flame detectors, and CCTV surveillance. The warehouse also boasts a range of sustainability features, including daylight provision and motion-sensor LED lighting.

Stringent procedures GWC has implemented stringent measures for chemical storage at the facility which comply with the UN Globally Harmonised System of Classification and Labelling Chemicals. There are separate storage areas for different classes of chemicals to ensure only compatible products are stored in proximity. The storage layout adheres to guidelines mandated by QCDD. Additionally, the HAZMAT (Hazardous Material) warehouse is equipped with a spill

containment pit to contain any leaks and prevent environmental contamination. All material handling equipment and racking systems are custom designed to suit the specific conditions required by a chemical storage facility.

Revolutionizing B2B Road Freight Solutions Across Middle East.

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EFFICIENCY

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Pioneering Market Leadership in the GCC Road network

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THINKING AHEAD - MOVING FORWARD

UD TRUCKS

UD Trucks launches new ‘Driver Guard’ initiative Manufacturer affirms Driver Safety is at the forefront Renowned Japanese truck manufacturer, UD Trucks has launched its ‘Driver Guard’ initiative, an extensive Corporate Social Responsibility (CSR) campaign aimed at prioritising the health and safety of the driver community.

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his ground-breaking initiative underscores UD Trucks’ commitment to fostering a responsible driving environment and addressing critical safety issues within the transportation industry.

The successful launch of the ‘Driver Guard’ initiative, in collaboration with the brand’s

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distributor, Al Masaood in Abu Dhabi and Boodai Trading in Kuwait, marks a pivotal step towards prioritising the well-being of the driver community. These collective efforts are aimed at bolstering safety measures and creating a culture of wellbeing among drivers.

This comprehensive initiative comprises

four safety stations. Initially, the Driver Training Essentials station emphasises good habits such as thorough predrive inspections, professional conduct, and safe driving behaviours, while highlighting the avoidance of poor habits like aggressive driving and neglect of vehicle cleanliness.

Driver education Following that, the Truck & Fleet Management segment educates drivers on daily vehicle inspections, following checklists, and promptly reporting deficiencies to ensure optimal vehicle performance and safety. The Telematics & Connected Services station introduces drivers to technological aids for safer driving practices and economic driving behaviour.

Lastly, the Health Clinic offers health check-ups for drivers to ensure their physical well-being remains a priority. The initiative’s multifaceted approach includes the utilisation of UD Trucks’ showroom for training sessions, walkarounds, and the distribution of informative flyers and goodie bags.

Also, part of UD Trucks safety precautions is the importance of addressing loading and unloading cargo in the realm of truck safety and continues its ongoing safety discussions and measures with truck drivers. This will significantly contribute to augmenting the

vehicle’s stability during transit, thereby fortifying the safety measures and ensuring an optimal level of security for the driver.

“Cultivating a safety-conscious environment for our drivers is paramount.

The ‘Driver Guard’ initiative embodies the brand’s commitment to address critical safety issues and provide support in fatigue management, emergency handling, and effective maintenance management,” observed Kris Meuleman, Uptime and Service Sales Director, UD Trucks.

“These training sessions are essential to enhance, empower, and uplift the driving community, fostering a safer and more proficient environment for all road users,” he added.

Educating drivers Ensuring proper load securing methods, such as blocking, containment, friction enhancement, and lashing of cargo, will be emphasised to mitigate risks associated with transportation and safeguard both

drivers and other road users. The initiative focuses on educating drivers about distractions, load-securing methods, and proper SCR system handling, ensuring a holistic approach to driver safety.

As part of UD Truck’s ongoing safety and community support, it will continue to announce plans for the expansion of the ‘Driver Guard’ initiative throughout 2024. Recognizing the significance of this initiative for both the company and the wider community, UD Trucks is dedicated to extending these invaluable safety measures and support systems to benefit an even broader spectrum of drivers across various regions.

The ‘Driver Guard’ initiative literature will be available across various mediums including a dedicated microsite and blog under the UD Trucks’ website, social media communication, and on-ground activities.

The UD app, designed as a safety guide for drivers, offers accessible information and support on-the-go, a press communique concluded.

JANUARY 2024 33

THOUGHT LEADERSHIP: FUTURE-READY WAREHOUSES

Four steps to create a warehouse for the future Manufacturing, and delivery to increase in complexity through 2027—A Gartner report

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he new world has created a need for resilient supply chains and warehouses which have the elasticity to cope with fluctuating capacity and demand, while demonstrating best practice in efficiency, safety and sustainability.

Khaled AlShami, Vice President, Solutions Consulting, Infor Middle East & Africa, enunciates four points to be considered to develop a successful warehouse of the future.

The last few years have without doubt, witnessed an acceleration of supply chain challenges with complexity and volatility increasing. More than 50% of supply chain leaders expect product design, manufacturing, and delivery to increase in complexity through 2027, according to Gartner.

Meanwhile, a recent survey by Make UK highlights the knock-on effects to supply chains from increased energy, transport, and raw material costs, as well as transport availability, with 80% of companies saying that increased energy costs have caused disruption to supply chains.

Keeping the following points in mind should help you create a good strategy for building a successful warehouse of the future.

Khaled AlShami

into common formats which can then become easily accessible and malleable, and used across different applications as appropriate. Data lakes aggregate everything, independent of source and format, covering both structured and unstructured data, and storing it in its native format. The data is processed appropriately, irrespective of size limits and formatting restrictions.

New technologies such as artificial intelligence (AI), robotic process automation (RPA) and augmentation can provide further value to a data strategy in that they can support repetitive low value tasks to free up resources.

how you want to change, it’s easy to work backwards and create a list of features and benefits before marrying capabilities with specific needs.

However, it’s prudent to remember that on their own, these applications are not going to deliver fundamental change.

They won’t necessarily integrate with other providers, and disparate systems inevitably bring inefficiencies and risk.

For the depth of change necessary, it is all about the power of the platform.

Leveraging a platform such as Infor OS delivers both the foundation, and the allimportant data lake, to accommodate and integrate the selected business applications.

2: Is cloud optional?

4: The people factor

Cloud makes interconnectivity with third party partners easy, and herein lies the key to harnessing supply chain complexity and creating agility to steady volatility.

Infor Nexus for example, connects businesses to all partners, including manufacturers, brokers, 3PLs and banks through a multi-enterprise cloud-native supply chain network. Some of the biggest global brands rely on networks such as this to fulfil their brand potential.

The warehouse of the future is of course digital, but digital is about much more than automation of processes and enhanced workflow. The warehouse of the future empowers people and creates value through leveraging multi-dimensional data across a resilient and agile cloud-native supply chain platform.

Only through adopting a strategy focused on the core pillars of data; cloud; platform and people, will warehouses possess sufficient elasticity to cope with fluctuating capacity and demand, and the tools to navigate both internal, and macroeconomic volatility both today and well into the future.

1: Data, data, data

3: The power of the platform

While there are many options for the organisation of data, data lakes have become a popular means of putting data

It’s important to have a vision for a digital platform which has resilience, longevity, and flexibility. Once you know what and

34 JANUARY 2024

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HELLMANN WORLDWIDE LOGISTICS

“A dependable supply chain is a key factor for the operational success of consumer goods providers.”

The consumer goods industry is fraught with disruptions attributable to changing consumer preferences, new technologies and the certain external factors We leverage our knowledge to customize our supply chain solutions to the demands of our customers. Our goal is to provide them with efficient response time, tailored solutions, and reduced complexity in the supply chain—Tushar Sharan.

H Tushar Sharan has over 15 years of sales and supply chain management experience working in multiple large international organizations (Fortune 500) and thrives on delivering logistical solutions to Hellmann Worldwide Logistics customers thereby enabling them to connect the dots in their supply chain processes.

Throughout his professional career, his key areas of focus have been in supply chain operations, vertical management, customer solutions, account management, and strategic sales management.

Tushar is a firm believer in focusing on key growth initiatives and understanding consumer wants through a consultative approach. He considers himself as a primary catalyst for boosting sales volumes and revenue for the organization but more significantly, believes he embodies the ethos and values that Hellmann espouses.

36 JANUARY 2024

ellmann’s priority is to eliminate logistics complexities for our customers. This is especially true in the consumer goods domain, where many factors such as shipping and transit delays, stock on the shelf, local rules and regulations, visibility, language hurdles, and more contribute to inventory management challenges.

“Countering these multiple challenges requires effective inventory management systems to ensure that the right products are available at the right time and in the right quantity. Balancing the inventory and movements across various centers is a complex task,” affirms Tushar Sharan, Regional Strategic Sales Director and Lead FMCG Vertical IMEA (India Subcontinent, Middle East and Africa), Hellmann Worldwide Logistics (HWL), in a recent exclusive interview with Global Supply Chain.

The following are the transcripts of that interview.

Global Supply Chain (GSC): What sets HWL’s Consumer Goods Division apart?

What are your advantages and USPs? Tushar Sharan (TS): The Consumer goods industry is constantly being disrupted by

changing consumer preferences and new technologies. Supply chain disruptions create uncertain times for businesses and consumers alike. A reliable supply chain is a key factor to the success of consumer goods providers.

At Hellmann, we understand the requirements of our customers and offer customized solutions to meet those requirements, The Smart Ocean tool, a real-time monitoring system that shows every container station along the sea route, is an integral part of the expertise that Hellmann brings onboard. In addition to the current location of the shipment, we offer the tracking tool ‘Smart Visibility’, which provides information on temperature, light incidence, and vibrations throughout the supply chain.

The concept is that all critical information for your consignments is just a click away.

Our diverse service portfolio, customer centric approach, industry expertise and focus on the needs of our client provides us with the edge to support our customers.

Most importantly, we want to be there as partners when most needed. Business is not just business but personal to us and this goes back to the importance of communications, we make sure our supply chain relationships are strong.

GSC: Is HWL currently performing in the region and how do you propose to close 2023?

TS: HWL is currently the second highest revenue generator for Hellmann amongst all verticals as per YTD numbers 2023. Customers.

For the IMEA (India, Middle East, Africa) region itself, we contribute more than 25% to the global revenue under ‘Consumer Goods’. This also adds to the fact that

Hellmann is focusing on the Consumer Goods vertical and utilizing the learnings and expertise in enabling our customers to meet their promise to their end customers.

In the past two to three years, we have opened our own regional office entities to further enable our clients and support them with the reach in these markets. Even in contract logistics, we now cover more than 20,000sqm for the IMEA region, which further enables us to meet the needs of our customers.

GSC: What is your appraisal of the E-commerce business?

TS: The consumer goods industry and e-commerce have a strong synergy that has significantly impacted the way businesses operate and consumers shop. This synergy has brought numerous benefits to both industry and consumers alike.

JANUARY 2024 37

HELLMANN WORLDWIDE LOGISTICS

With a unique positioning in and partnership with Dubai Commerce City (DCC), HWL stands out as the sole global provider with a dedicated facility to meet market demands. This distinct advantage contributes to increased market reach, cost efficiencies, improved customer feedback, and enhanced supply chain management.

GSC: How complex is your business?

TS: Hellmann’s priority is to eliminate logistics complexity for our customers. Especially in consumer goods, where many factors such as shipping and transit delays, stock on the shelf, local rules and regulations, visibility, language hurdles, and more contribute to inventory management challenges.

These require effective inventory management to ensure that the right products are available at the right time and in the right quantity. Balancing the inventory and movements across various centres is a complex task.

Consumer goods logistics involves complying with various regulations and legal requirements at the local, national, and international levels. This includes safety standards, product labeling, export/import regulations, customs documentation, and environmental regulations. Ensuring compliance and arranging related documentation can be a challenge, especially when operating in multiple countries with different regulations.

GSC: How important is automation and technology in your business?

TS: Inefficiencies, delays, and increased prices can all result from a lack of visibility across the supply chain. The only constant in the supply chain is that there are none. There will always be some volatility-a spike, seasonality, low demand, or a sudden uptick in sales of a specific product, for example. The more agile you are in fine-tuning yourself, the better your prospects of capitalizing on changing demands, and the better the consumer experience you can deliver.

The fluctuating demand for consumer products creates a continuous need for efficient production and precise stock management. Businesses face the challenge of interpreting forecasted data and making real-time decisions to meet these demands.

Leveraging technology to input, analyze,

38 JANUARY 2024

and act on this data is essential for effectively managing the product flow. Improved data integration offers a clearer understanding of consumer purchasing patterns, enabling businesses to address short-term demands while facilitating enhanced long-term strategizing and forecasting.

GSC: What are your expansion plans for HWL’s FMCG in the region?

TS: Output in the Consumer Goods market is projected to amount to US$ 22.12tn in 2023. A compound annual growth rate of 14.23% is expected in the next 5 years (CAGR 2023–2028).

If we consider Middle East and Africa

region for Consumer goods industry, then there is a substantial opportunity for growth due to the diversified economy in the region and the numerous expansion plans in countries like Saudi Arabia and UAE. This would mean more people moving to the region for work, which in turn would lead to more consumption of goods.

The Intent is how do we translate these trends into the Hellmann consumer vertical?

What we want to leverage as Hellmann is our focus on understanding the needs of our customers and working on solutions more than selling of existing products.

We are further looking to empower our commercial team with the right

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HELLMANN WORLDWIDE LOGISTICS

understanding and emphasis on the requirements of the industry which would further lead them to have better insights into the customer needs, identify client preferences, and trends that may further impact the Consumer Goods industry.

Internally we are equally focusing on our network development, technology integration, sustainability initiatives and service excellence.

GSC: What challenges and trends confront the industry in the region? How do you gauge the competition?

TS: The GCC Freight and Logistics market is estimated at US$ 47.6bn for 2023 and is expected to grow to US$ 66.6bn by end of 2029. Therefore, the fact that the Consumer industry itself may be growing at a faster rate and the demand expected is going to be higher vis-a-vis the market concentration which is lower.

Some major challenges in the GCC region would be streamlining the cross-border complexities, technology adoption to wider base of customers, e-commerce growth, competition, and market dynamics. Above all it’s the change in mindset and changing consumer buying patterns.

40 JANUARY 2024

Additionally, continuous consumer demand for high-speed delivery of lowcost, multi-SKU products has pushed these supply chains to prioritize leanness over everything else. This has led to highfrequency purchasing, fluctuating volumes and the need to constantly evolve.

With the rise of DTC (direct to consumer) e-commerce, supply chains – previously built for bulk orders delivered to a single or few locations, are having to pivot to keep up with the current surge in demand.

Now, FMCG brands are compelled to strengthen their supply chain, with a primary need for visibility, to recognize changes in demand and deliver on fulfilment and inventory flow. Consequently, FMCG supply chains are looking to re-design their ecosystem into one that can bounce back quickly and prevent disruptions from affecting the end consumer.

GSC: What opportunities / potential do you foresee for HWL’s Consumer Goods Division going forward?

TS: As a Freight Forwarder in the Consumer Goods division, we believe we play a crucial role in ensuring the efficient movement of goods from manufacturers to retailers and

eventually to the end consumers.

Mitigating the risk in logistics is a big ask from companies, and as Hellmann we trust our capabilities in addressing this through our multimodal solutions and strong collaboration with asset owners, allowing us the flexibility and scalability to manage. Organizations need partners that can provide expertise in building robust supply chain strategies, including contingency planning, risk management, and diversification of transportation routes.

We have also seen demand in movements to CIS countries ex EU through rail /road modes which in turn enables them to better reach to market. HWL has the specific capabilities to support our customers in both Rail and Road intermodal movement in the region leading to safer and cost viable transportation.

Several consumer goods businesses would rather relinquish control of their logistics to a single supplier and focus on their own core business. That is why they are looking for Supply Chain Management (SCM), Fourth Party Logistics (4PL) or 3PLs and Control towers experts to take on complete management of their processes, from start to finish.

GSC: What are your perspectives and vision for HWL’s FMCG Division going forward for the short and long terms futures?

TS: The future of the Consumer Goods industry lies in the success of its supply chains: Consumer Good companies have now begun to think long-term and invest in their supply chains. They know that they need to expect the unexpected, and for that reason, have ranked ‘Overall Supply Chain Visibility’ as their primary focus when it comes to mitigating risks in the supply chain. After all, if you don’t know that a problem exists, you cannot come up with a solution, let alone one that enables you to recover quickly.

The success of Hellmann’s Consumer Goods division involves a seamless blend of technology, sustainability, collaboration, and a customer-centric mindset. Those who embrace these changes and position themselves as innovative and adaptable partners are most likely to thrive in the evolving logistics landscape.

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SAUDIA CARGO

Saudia Cargo, Cainiao, and WFS/SATS increase strategic collaboration

New collaboration aims to create a business model for future e-commerce logistics gateways Saudia Cargo, Cainiao, and Worldwide Flight Services have announced that the three parties will reinforce and increase their collaboration with a determination to optimize the efficiency of global logistics operations.

W

ith the growth of online shopping on a global scale, the need for efficient and innovative e-commerce logistics solutions is paramount. To this end, stakeholders Saudia Cargo, Cainiao, a Chinese logistics company launched by the Ali Baba Group, and WFS, (Worldwide Freight Services), a Member of Singapore’s SATS Group, have joined forces to streamline systems, processes and bolster logistics and supply chain operations.

This collaboration strengthens their existing relationship, focusing on optimizing logistics processes by streamlining operations and adopting logistics innovations.

A key component of this collaboration is the establishment of a dedicated area in the air cargo station of Cainiao Liege eHub in Belgium, the company’s European regional hub. WFS/SATS, in close collaboration with Cainiao, operates in the air cargo station.

Robust collaboration Saudia Cargo and Cainiao boast a robust collaboration, with a history that spans several years. The latest agreement reinforces this longstanding relationship by giving precedence to specific Saudia Cargo freighter flights originating from Hong Kong and bound for Riyadh and Liege. This strategic move is meticulously crafted to address the burgeoning logistics demands in these key regions, further amplifying the efficiency of e-commerce deliveries.

Additionally, the contract extension to WFS/SATS for handling over 50,000 tonnes annually on flights connecting Liege and Riyadh underscores Saudia Cargo’s

42 JANUARY 2024

commitment to operational excellence and reliable logistics services.

commented Eric Xu, Vice President, Cainiao Group.

Natural evolution

Operational excellence

“Our collaboration with Cainiao and WFS/ SATS represents a natural evolution of our strong collaborations. By building on our existing commitments, we are poised to redefine the industry landscape, offering innovative and customer-centric solutions.

Utilizing a meticulous process involving prebuilt ULDs, we facilitate an uninterrupted supply chain, supporting Cainiao in achieving their key performance indicators,” noted Teddy Zebitz, CEO, Saudia Cargo.

“Cainiao is committed to transforming the logistics industry through continuous innovation to enable a seamless e-commerce experience and we are delighted to find close partners like Saudi Cargo and WFS/SATS on this path,”

“This three-party collaboration leverages operational excellence skills and requirements from the airline, cargo handler, and e-commerce logistics perspectives, and will exemplify our commitment to innovation, speed, and real-time information for the future of the e-commerce logistics ecosystem,” said John Batten, CEO, Europe, Middle East, Africa and Asia (EMEAA) WFS. The operations will be effective on 1 March 2024. The strategic collaboration between Saudia Cargo, Cainiao, and WFS/ SATS aims to make a transformative leap in global logistics and to set a new benchmark which propels cross-border logistics into a new era, driven by efficiency and innovation.

JAFZA-TRANSWORLD GROUP MOU

JAFZA and Transworld Group to establish advanced Logistics Centre 50,000+ sqm facility to meet growing demand for cold and frozen storage

DP World’s Jebel Ali Free Zone (Jafza) and Transworld Group recently announced the signing of an agreement for the construction of a 50,000+ square metre, dry and temperature-controlled distribution centre in Jafza.

T

he enormous facility, which will be developed by Jafza, represents a significant expansion for the Transworld Group, will nearly double its capacity in the region while expanding the logistics infrastructure in the Free Zone.

“We are delighted to continue our longstanding relationship with Transworld Group by partnering on this project. This agreement reflects our commitment to providing state-of-the-art solutions that cater to the diverse needs of our clients and foster business growth in Jafza, while solidifying our position as a leader in the logistics sector,” stated Abdullah Bin Damithan, CEO and Managing Director, DP World GCC. The warehouse construction is scheduled to begin in early 2024 and is expected to be completed by 2025, with the expansion coming on the heels of Transworld Group opening its new Cold Chain Distribution Centre in Jafza earlier this year.

Momentous occasion “This is a momentous occasion for Transworld Group and a reflection of our faith in DP World, Jafza and the UAE. This mega distribution centre will be a landmark for Transworld, symbolising our growth and expansion over the last five decades. It will also complement our foray into the food processing sector,” commented Ramesh S. Ramakrishnan, Chairman, Transworld Group, “We are thankful to Jafza and DP World for facilitating this venture of Transworld and look forward to many more milestones through this partnership as we continue serving our customers,” he added.

The agreement was officially signed in

DP World-Transworld Group MoU signing ceremony. the presence of Abdullah Bin Damithan; Abdulla Al Hashmi, Chief Operating Officer, Parks & Zones, DP World GCC; Ramesh Ramakrishnan, Chairman, Transworld; Ritesh S. Ramakrishnan, Managing Director at Transworld and Anisha Ramakrishnan, Director at Transworld.

Strategic location Strategically located at the crossroads of a region providing market access to over 3.5 billion people, Jebel Ali Port and Free Zone create an integrated multimodal hub offering sea, air, and land connectivity, complemented by extensive logistics facilities. ‎ Since being established in Jafza in

2005, Transworld has grown rapidly, with its facility in the Jebel Ali Free Zone serving as a central distribution hub and complementing its logistics and shipowning businesses. The upcoming facility will bolster Transworld’s capabilities further, featuring cold and frozen chambers to accommodate a range of temperaturesensitive products.

The group’s activities include Ship Owning and Management (Container, Bulk Carriers and Tankers), Aviation, Supply Chain Management, Warehousing, Cold Chain, Inland Transportation, Multimodal Freight Forwarding, Feeder, Liner, NVOCC, Shipping Agencies, Projects & E-commerce, a press statement concluded.

JANUARY 2024 43

ETIHAD RAIL

Etihad Rail and ADNOC ink strategic partnership The agreement aims to establish railway services between Abu Dhabi City and Al Dhannah region HH Sheikh Theyab Bin Mohamed Bin Zayed Al Nahyan, Chairman, Office of Development and Martyrs Families Affairs at the Presidential Court, and Chairman, Etihad Rail, recently witnessed the signing of a strategic partnership agreement between Etihad Rail, developer and operator of the UAE National Rail Network, and ADNOC.

T

he recent agreement between Etihad Rail and ADNOC aims to establish railway services between Abu Dhabi City and Al Dhannah region, in the Al Dhafra region located 250km west of Abu Dhabi.

In the presence of HE Dr Sultan Bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, and Managing Director and Group CEO of ADNOC, the agreement was signed at ADNOC Headquarters by Shadi Malak, CEO, Etihad Rail, and Saif Al Falahi, Executive Vice President, Group Business Support & Special Tasks, ADNOC.

Integrated rail network “The UAE’s railway network is a key contributor to the UAE’s strategic visions across various sectors. An integrated rail network is an essential aspect of infrastructure within major cities and countries across the globe, and Etihad Rail is playing a similarly significant role in the UAE’s sustainable development,” commented HH Sheikh Theyab Bin Mohamed.

HH also said the collaboration bolsters the UAE’s transportation and logistics infrastructure – bringing it to a global standard, in line with the UAE leadership’s vision, driving economic development through collaboration between government entities.

“In line with our leadership’s directives to enable a sustainable and lower carbon future, this partnership with Etihad Rail underscores ADNOC’s commitment to supporting sustainable transportation solutions and infrastructure development projects in the UAE,” stated Dr Sultan Ahmed Al Jaber “It also highlights ADNOC’s drive to explore opportunities to strengthen partnerships and

44 JANUARY 2024

implement solutions and technologies that accelerate efforts to reduce emissions, as we work towards our Net Zero by 2045 target,” he added.

Dedicated rail service The agreement will also enable the two companies to share knowledge and expertise and explore opportunities to launch dedicated railway services between the cities of Abu Dhabi and Al Dhannah.

Through this partnership, ADNOC will provide the opportunity for its employees to travel between Abu Dhabi and Dhannah via the railway network in the future.

It is expected that the partnership will pave the way for new areas of cooperation with other companies to support Etihad Rail’s national operations.

The partnership is consistent with leadership directives to advance national

capabilities and resources to support sustainable development in the UAE for the benefit of citizens and residents.

Benchmark It will also serve as an important benchmark for other companies exploring opportunities to leverage the success of the National Rail Network, one of the largest and most important infrastructure projects in the UAE. Etihad Rail continues to progress the development of its passenger services.

In February 2022, it signed a green loan agreement with First Abu Dhabi Bank (FAB) for the financing of railway passenger services, with a total value of US$ 540mn.

Another agreement was signed in June 2022 with Spain’s CAF company for designing, manufacturing, supplying, and maintaining passenger trains for the Etihad Rail project, valued at US$ 325mn.

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NEWS AD Ports Group and KazMunayGas sign Heads of Terms for shipbuilding n In the presence of Kassym-Jomart Tokayev, President of the Republic of Kazakhstan, AD Ports Group, a leading facilitator of global trade, logistics, and industry, alongside the most prominent, vertically integrated oil and gas company in Kazakhstan – KazMunayGas (KMG), have signed Heads of Terms (HoT) to establish a leading-edge ship building and repair facility in the Mangistau region of Kazakhstan.

Both companies are poised to reshape the maritime landscape, creating a multifaceted facility, which would offer a broad range of services including drydocking, afloat repairs, ship building and refurbishment, the facility would be strategically designed to accommodate diverse vessel types such as bulk carriers, container ships, tankers, offshore vessels, and ferries.

The proposed shipyard is set to become a cornerstone for AD Ports Group and KMG’s rapidly expanding joint venture – Caspian Integrated

ADPG-KMG MoU signing ceremony Maritime Solutions (CIMS). It would not only bolster CIMS fleet, but also extend its services to third party clients within Kazakhstan’s shipping and offshore maritime sectors, substantially enhancing the maritime capabilities within the Caspian Sea Region, making it a pivotal hub for maritime activities.

“Our strong alliance with KazMunayGas, through our strategic Joint Venture, CIMS, broadens our range of maritime services and fleet within the

Caspian Region, whilst providing further opportunities to utilise our combined strengths to catalyse economic growth of Kazakhstan,” Captain Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group.

“I am certain that the signing of the HoT will make a significant contribution to strengthening the strategic partnership between our countries,” commented Magzum Mirzagaliyev, Chairman, KazMunayGas.

Operations commence at a major Carbon Capture Plant in the Saudi Arabia’s Western Region n Petro Rabigh, one of the largest integrated refining and petrochemical facilities in Saudi Arabia, and Gulf Cryo, a leading provider of industrial, medical, and specialty gases in the region, announced the inauguration of a new carbon capture and utilization facility, located in the Kingdom’s Western Region.

Under a long-term strategic partnership spanning over 20 years, Gulf Cryo designed, constructed, and operated an advanced carbon capture plant at Petro Rabigh’s Mono Ethylene Glycol (MEG) plant, which is located at the Red Sea town of Rabigh, north of Jeddah.

The project is considered the first carbon capture plant in Saudi Arabia’s western region dedicated to the merchant market and the second in the Kingdom, according to a press communique.

The new facility captures 300 metric tons of CO2 per day directly from the MEG plant. This will result in the reduction of 100,000 metric tons per annum of carbon

46 JANUARY 2024

emissions at the source from the MEG plant, representing an 85% reduction in its total annual CO2 emissions footprint.

The captured CO2 will be purified to a high-purity food-grade level by Gulf Cryo and transported in liquid form for re-use.

Petro Rabigh will utilize part of the CO2 stream internally.

“Through this pioneering initiative under our strategic partnership, we are demonstrating an unwavering commitment

to significantly reducing emissions over the long term,” stated Othman Al-Ghamdi, President and Chief Executive Officer, Petro Rabigh Co. “This landmark project anchors our leading position in CCUS solutions in the region and marks our first carbon capture project in the Kingdom. It underscores the importance of managing the full CO2 value chain,” remarked Abdul Salam Al Mazro, Vice Chairman, Gulf Cryo.

Petro Rabigh & Gulf Cryo Management at the inauguration ceremony

Max Verstappen secures the DHL Fastest Lap Award for the second consecutive year n At the conclusion of the 2023 FIA Formula One World Championship, during the Formula 1® Etihad Airways Abu Dhabi Grand Prix 2023 in the United Arab Emirates, DHL, the Official Logistics Partner of the series, presented the DHL Fastest Lap Award to Max Verstappen for the second year in a row.

Throughout the 22 race weekends, three-time World Champion Max Verstappen demonstrated remarkable speed on the track, concluding the season with nine fastest laps.

“On behalf of DH, I would like to congratulate Max Verstappen and Oracle Red Bull Racing for their exceptional achievements throughout this season.

Formula 1, much like our logistics business, thrives on speed and teamwork.

These awards symbolize the shared values between both companies,”stated Arjan Sissing, Head of Global Brand Marketing at DHL Group.

Indy NXT driver and DHL Ambassador in women’s sports, Jamie Chadwick,

Jamie Chadwick and MaxVerstappen. had the honour of presenting the DHL marketing and hospitality materials. This Fastest Lap Award to Max Verstappen. season, DHL travelled over 150,000km Her presence not only highlights her transporting up to 1,400 tons per race. This exceptional racing prowess but also season also marked a milestone in green underscores DHL’s commitment to DEIB logistics with the introduction of 18 new (Diversity, Equity, Inclusion, Belonging). biofuel-powered trucks for the European “Ferrari and McLaren have run us to Leg of the series. the wire many times, but the crew has “I want to express my gratitude to been unbelievable, they have motivated DHL for their dedication and support themselves, they rebuild themselves throughout the season as we conclude again and again. To win 6 in a row is another phenomenal year for Formula an extraordinary achievement,”noted 1. DHL, as always, played a pivotal role Jonathan Wheatly, Sporting Director, in delivering these events and displayed Oracle Red Bull Racing. unwavering commitment in delivering As the Official Logistics Partner of new and returning events, while ensuring Formula 1, DHL uses its global logistics sustainability in every aspect of the network to transport cars, engines, process,”observed Jonny Haworth, Director fuel, broadcasting equipment, and of Commercial Partnerships, Formula 1.

Bahri inks a Membership Agreement with Bayan Credit Bureau n Bahri has signed a membership agreement with Bayan Credit Bureau (Bayan), a leading Credit Bureau that provides local and global credit reports for more than 180 countries.

The partnership will now enable Bahri to avail of the wide range of credit advisory services offered by Bayan and empower the regional logistics leader to make informed and responsible business decisions by assessing the creditworthiness of its potential clients.

The agreement was signed in the presence of Eng. Ahmed Ali Alsubaey, CEO, Bahri CEO, and Eng. Mohammad Bamogaddam, CEO, Bayan. The agreement was signed by Abdulaziz Aloud, Acting Chief Financial Officer, Bahri, and Talal Fahad Alshehri, Chief Business Officer, Bayan, at the Bahri headquarters in Riyadh, Saudi Arabia.

Under the terms of the membership agreement, Bahri is also committed to exchanging its credit information in line

Bahri-Bayan MoU signing ceremony with Bayan Credit Bureau’s plan and objectives of providing services and products that help create an attractive investment environment amid a clear datasharing Process and in adherence to the regulations and restrictions stipulated by the credit information law.

Bayan is a leading company specialized in credit reporting, due diligence reports, data analysis, and providing risk assessment solutions and credit consultations. It operates under a license from the Saudi Central Bank (SAMA), according to a corporate press release.

JANUARY 2024 47

NEWS FedEx invests US$ 100mn to foster job growth and innovation in Hyderabad’s Tech Hub n Marking a significant investment of US$ 100mn in Hyderabad’s economic landscape, FedEx Express recently inaugurated its first Advanced Capability Community (ACC) in Hyderabad, India.

At the forefront of this milestone is FedEx’s commitment to leverage exceptional talent in India to support digital transformation and innovation.

The launch ceremony witnessed the presence of FedEx Corporation President and CEO, Raj Subramaniam, and Richard Smith, FedEx Express President and CEO of Airline and International.

The FedEx ACC is envisioned as a hub for technological and digital innovation, aligned with the Telangana government’s strategic emphasis on nurturing a thriving pool of tech talent. In addition to boosting employment opportunities, it will also contribute to the development of new capabilities and meeting the technological requirements of FedEx operations worldwide.

“This investment in talent and

FedEx invests US$ 100mn in Hyderabad’s Tech Hub innovation is part of our broader plan to drive excellence and deliver unparalleled smart logistics solutions worldwide. By leveraging an exceptional talent pool, we are accelerating digital transformation and delivering innovative solutions to our customers,” remarked Subramaniam.

The first FedEx ACC becomes a pivotal step in the company’s global strategy, initiating a network of such communities worldwide. Furthermore, it will fuel the company’s growth and expansion and bring added value to the global supply chain ecosystem, a press communique concluded.

Universal Islamic Food Industries invests AED 150mn in Ras Al Khaimah n Universal Islamic Food Industries (UIFI), a Kuwaiti based group of companies, has set up a new massive manufacturing unit in Ras Al Khaimah with an investment of around AED 150 million. This modern, state-of-theart facility, located in the Al Hamra Industrial Zone, extends over an expansive area of 350,000sqft.

The new facility is designed to address the soaring demands of the regional consumer market. The facility will produce an additional 3,000 tons of processed food monthly, which significantly exceeds the expected capacity of the ready-to-eat poultry, meat, and seafoods products.

Staying abreast with modern trends and requirements, the operations will encompass advanced manufacturing, packaging, warehousing, and storage facilities, setting a new benchmark in the processed food industry.

UIFI is a subsidiary of Kuwait-based, Universal Islamic Meat Group, which has earned the trust of numerous clients across GCC and the MENA region by consistently

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Universal Islamic Food Industries - Al Hamra Industrial Zone, RAKEZ demonstrating a commitment to quality over 27 years. The company has top-tier B2B clients, including premier hypermarkets, chain of supermarkets, major catering companies and HORECA sectors.

“At UIFI, we are dedicated to maintaining our reputation as a provider of top-quality products and services, which is essential for ensuring our long-term success in the

marketplace,” explained Ayoob Khan, CEO, UIFI. “This move by UIFI marks a significant milestone in our strategic efforts to bolster the F&B sector in Ras Al Khaimah. Their investment demonstrates the growing appeal of RAKEZ as a dynamic and supportive hub for manufacturing, especially in the food and beverage industry,” remarked Ramy Jallad, CEO. RAKEZ Group.

NEWS Maersk signs landmark green methanol offtake agreement n The offtake agreement between AP Moller-Maersk and Chinese developer Goldwind, a global leader in clean energy, reaches into the next decade and marks the first large scale green methanol offtake agreement for the global shipping industry.

“This deal is a milestone for Maersk as it enables us to significantly reduce our emissions footprint in this decade and stay aligned with the 1.5-degree Celsius trajectory as set out in the Paris Agreement, ensuring continued supply of low carbon shipping services to our customers in the second half of this decade,” noted Rabab Raafat Boulos, Chief Infrastructure Officer, AP Moller-Maersk.

AP Moller-Maersk aims to reach netzero greenhouse gas emissions by 2040 across its business. The deal significantly de-risks the initial stages of Maersk’s netzero journey and supports expectations for a competitive green methanol market towards 2030. The record-high volumes can annually propel more than half the methanol-enabled capacity

Floating Milestone-front shot.

Maersk currently has on order, a press communique said.

“Goldwind is committed to collaborating with companies involved in the green methanol industry, with the aim to make green methanol one of the most important and economically feasible clean maritime fuels in the future,” said

Wu Gang, Chairman, Goldwind.

AP Moller-Maersk will take delivery of its first large ocean-going methanolenabled vessel (16,000 TEU) in the first quarter of 2024 and is diligently working on sourcing solutions with a broad range of global partners for the entire vessel series being delivered in 2024-25.

UAE secures Category-B Membership in IMO with the highest number of votes n The UAE has been re-elected to the Council of the International Maritime Organisation (IMO) in the Category B membership for the fourth term with the highest number of votes, following comprehensive efforts and an intensive election campaign leading up to the elections.

Through its landmark initiatives, the country continues playing an active role in strengthening the national maritime sector, while contributing to the growth of the global maritime and logistics industry.

“Our re-election to the Council of the International Maritime Organization (IMO) for the fourth consecutive term has further strengthened our active role in developing the sector and enhancing maritime safety standards, as well as protecting the marine environment globally,” observed HE Eng. Suhail Al Mazrouei, the Minister of Energy and Infrastructure.

“It is truly an honour to be re-elected to the Council owing to the hard work that we and our industry partners in the country have put in,” commented HE Hassan Mohamed Juma Al-Mansoori, Undersecretary for the Infrastructure and

UAE delegates at IMO 2023 Transport Sector at the UAE Ministry of Energy and Infrastructure.

“With this win, the UAE has demonstrated its active role in strengthening the maritime sector through a series of initiatives, as a result of which we have received international acclaim,” remarked HE Hessa Al Malek, Advisor to the Minister for Maritime Transport Affairs, UAE

Ministry of Energy and Infrastructure.

“Our commitment to embracing these challenges is evident in the recent developments such as the Maritime Autonomous Surface Ships Code and the mandatory adoption of electronic data exchange within the maritime single window,” noted HE Mohammed Khamis Al Kaabi, UAE Permanent Representative at the IMO.

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AP University Alliances welcomes two new UAE members

From left-Wissam Kadi, Dr. Karina Edmonds, Prof Ghassan Aouad, Chancellor of Abu Dhabi University, and Dr. Anas Najdawi. n In a series of three educationthemed events arranged against the backdrop of COP28, global technology company SAP’s University Alliances has welcomed two new UAE members to its ranks and has been collaborating with them and other parties to create awareness of the importance of young voices, education and technology to address the world’s climate challenges.

The two newest MENA institutions to join the global SAP University Alliances program are the University of Dubai (UD), which officially became a member while hosting the 7th international Conference on Advances in Business, and Abu Dhabi University (ADU), which signed the membership charter while co-hosting the SAP Academic Community Conference MENA at its Dubai campus.

“As part of our focus on purposeful education, we aim to create opportunities for students to participate in highimpact collaborations with like-minded students and SAP’s ecosystem partners,” stated Dr. Eesa Mohammed Al Bastaki, President, UD. The SAP University Alliances program enables academia to educate the next generation to

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work in an experience economy and to prepare them for the SAP ecosystem, while also giving the students opportunities to engage at SAP events and build industry partnerships.

“SAP University Alliances is currently introducing the newly developed sustainability curricula that will enable students to comprehend environment management by monitoring, reporting, and analyzing resource consumption and carbon emissions,” explained Dr. Karina Edmonds, SVP and Global Head, SAP’s Academies and University Alliances (AUA).

“Now we will be able to create further learning opportunities for our students to gain handson experience using technology, enabling them to succeed in a digital economy while also advancing the sustainability agendas of their future employers,” remarked Prof. Ghassan Aouad, Chancellor, ADU. “In organizing and participating in these three events, the collaborative spirit between public and private sector; academics and businesses; and global and regional entities has been truly inspiring,” concluded Wissam Kadi, VP-Global Initiatives, SAP Academies & University Alliances.

Hyundai Motor and BEEAH Group ink MoU n Hyundai Motor Company has signed a memorandum of understanding (MOU) with BEEAH Group (BEEAH), to promote hydrogen mobility demonstration project in the United Arab Emirates and explore further opportunities for collaboration.

As part of its waste management business, the Group operates a fleet of over 2,000 waste collection vehicles, including electric vehicles.

Hyundai Motor and BEEAH have agreed to cooperate in a fuel cell electric truck demonstration project which is planned to be conducted in the emirates of Sharjah and Dubai, UAE. As part of the demonstration project, Hyundai Motor will provide a fuel cell electric truck to BEEAH Group to utilize the vehicle in its normal day-to-day truck operations.

Launched in 2020, XCIENT Fuel Cell is the world’s first mass produced fuel cell electric heavy-duty truck.

“The Hyundai XCIENT Fuel Cell truck is the first hydrogen powered truck in the UAE and will undergo several tests under real conditions. This trial run will be the first milestone in a long-term partnership between the Hyundai Motor Company and BEEAH Group. We are currently exploring further areas of collaboration,” commented Mark Freymueller, Senior Vice President, and Head of Global Commercial Vehicle Business, Hyundai Motor Company.

“We are excited to collaborate with Hyundai and explore ways to apply its technologies for on-ground use cases within our fleet operations, so that we may demonstrate the tangible, positive impact and potential of hydrogen to shape zero-emissions transport networks and achieve net-zero targets,” remarked Khaled Al Huraimel, Group CEO, BEEAH. BEEAH Group has set industry benchmarks for sustainable waste management in the Middle East, leveraging cutting edge technologies and innovative, end-to-end integrations to achieve 90% landfill waste diversion in Sharjah, the highest in the region, a press statement concluded.

Hyundai Motor and BEEAH Group Signing MOU

NEWS EGA first aluminium producer to join global shipping and maritime sustainability initiative n Emirates Global Aluminium, the world’s largest ‘premium aluminium’ producer and the biggest industrial company in the United Arab Emirates outside oil and gas, has become the first aluminium producer and the first Middle East company to join the Sea Cargo Charter, according to a press communique.

The Sea Cargo Charter sets a global framework to assess and disclose the climate alignment of ship chartering activities to reduce the annual greenhouse gas emission of global shipping to net zero by around 2050, in line with the goals of the International Maritime Organization, the United Nations agency responsible for regulating global shipping.

EGA ships some 22mn tonnes of aluminium, bauxite and raw materials around the world each year. While the production of raw materials accounts for the bulk of EGA’s scope 3 emissions, global shipping accounts for a meaningful proportion.

“EGA has committed to reaching net zero by 2050, including from our

supply chain. Joining the Sea Cargo Charter will enable us to further improve our performance and achieve our goal to reach net zero from supply chain activities,” affirmed Abdulnasser Bin Kalban, Chief Executive Officer, Emirates Global Aluminium.

“We hope EGA’s example inspires other participants in the aluminium industry to follow a similar path towards carbon emissions transparency in their

supply chain,” commented Eman Abdalla, Sea Cargo Charter Vice Chair, and Global Operations Director, Cargill.

In 2022, EGA signed an agreement with one of its shipping partners, K Line to develop and implement new marine decarbonisation technologies suitable for EGA’s bulk cargo shipping routes in the eastern Atlantic Ocean, Mediterranean Sea and Indian Ocean, a press communique concluded.

Mega Green Accelerator will focus on circular economy solutions n On the heels of the first week of COP28, PepsiCo, SABIC, AstroLabs and their strategic partners have announced the launch of the Mega Green Accelerator, a new initiative to nurture the next generation of innovators in the region as they develop solutions to both regional and global sustainability challenges.

The Middle East is warming almost two times faster than the global average, yet the support and investment for the sustainability innovation ecosystem in the region does not match this urgency. Since 2010, less than 50 new climate technology startups have been founded in the MENA region, compared to 5,000 in Europe and the US. The Mega Green Accelerator aims to reduce this gap, foster regional collaboration and cultivate a network of MENA-based innovators addressing the most pressing sustainability challenges in the region.

“By bridging the gap between entrepreneurs and the networks and resources they need, we are committed to

PepsiCo Mega Green Accelerator fireside chat supporting breakthrough start-ups as they scale sustainability solutions, grow their businesses and form critical connections,” remarked Eugene Willemsen, CEO, PepsiCo, Africa, Middle East, South Asia.

“We believe that such cross-sector partnerships are crucial in effectively tackling complex, critical issues such as climate change. In supporting this initiative, we

are not just bettering local economies, but people and planet at the same time,” commented Dr.Bob Maughon, SABIC Chief Technology and Sustainability Officer.

“Our aim is to ensure the GCC not only responds to the current demand for green solutions but also pioneers the advancement of sustainable business practices on a global scale,” noted Roland Daher, CEO, AstroLabs.

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NEWS Turkish Airlines and Riyadh Air ink Strategic Co-operation MoU

n Turkish Airlines (TK) and Riyadh Air (RX) have recently agreed a Strategic Cooperation Memorandum of Understanding to offer a comprehensive range of benefits for guests traveling between the Kingdom, Türkiye and points beyond their Riyadh and Istanbul hubs, as well as lay the ground for deeper future collaborations.

Guest of both airlines will be able to take full advantage of each carrier’s worldwide network through a comprehensive interline and codeshare agreement that will allow customers

to seamlessly connect between and combine sectors operated by either Riyadh Air or Turkish Airlines, according to a joint press communique.

Turkish Airlines Chief Investment & Technology Officer, Levent Konukcu, and Riyadh Air CEO, Tony Douglas, signed the agreement at a ceremony on the sidelines of the ICAO Air Services Negotiation Event (ICAN 2023), held in Riyadh, Saudi Arabia.

The intention of both carriers is that benefits will be made available to guests as soon as possible after Riyadh Air launches operations in mid-2025 and is subject to regulatory approvals by relevant authorities.

The close cooperation will allow members of each carrier’s loyalty program to earn points or credits when traveling on codeshare services operated by the other, with both airlines also exploring opportunities to develop a broader loyalty agreement covering both global networks.

In addition to offering a comprehensive range of guest benefits, the MoU also commits Riyadh Air and

Turkish Airlines to work together to explore and implement broader synergies and efficiencies across the value chain, touching areas such as aviation related services, cargo and digital development.

“We are happy to start our relationship with Riyadh Air, a promising new player in the aviation industry. This Memorandum of Understanding is more than a collaboration; it’s a bridge between Türkiye and Saudi Arabia, further strengthening our ties,”commented Konukcu.

“This agreement is another very significant step in the evolution of Riyadh Air as we partner with the world’s largest global airline by destinations served,” remarked Douglas.

The establishment of Riyadh Air is in line with PIF’s mandate to unlock the capabilities of key sectors locally to drive the diversification of Saudi Arabia’s economy. The airline will also support the Saudi Aviation Strategy’s broader vision, and enable the National Tourism Strategy, unlocking Saudi Arabia’s cultural and natural attractions to international tourists and creating new jobs, the press statement concluded.

The agreement is set to establish the foundation of a high-potential collaboration between the two airlines, aimed to be further strengthened in the future.

“Asia is one of our key markets at Turkish Airlines. I am hoping our collaboration with Vietnam Airlines will be beneficial and fruitful for both countries and both flag

carriers,” commented Ekşi.

“Turkish Airlines will benefit from expanding the scale of its transportation network to previously limited areas such as Oceania, Northeast Asia by taking advantage of Vietnam’s central geographical location as a transit point,” stressed Dang Ngoc Hoa.

Turkish Airlines expands its collaboration with Vietnam Airlines n Turkish Airlines has signed a Letter of Intent with Vietnam Airlines, the national flag carrier of Vietnam, in Ankara today, adding yet another new partnership to its portfolio of collaborations. Signed for its successful air cargo brand, Turkish Cargo, Turkish Airlines is committing to only expand its extensive flight network, but also enter partnerships with airlines around the world.

The signing ceremony was recently held at the Presidential Complex, witnessed by Cevdet Yılmaz, Vice President of Türkiye and Pham Minh Chinh, Prime Minister of Vietnam. The signatories for Turkish Airlines were Bilal Ekşi, Chief Executive Office, and Turhan Özen, Chief Cargo Officer, while Vietnam Airlines was represented by Dang Ngoc Hoa, Chairman of the Board of Directors at Vietnam Airlines.

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NEWS DP World joins First Movers Coalition to decarbonise shipping n DP World has joined the First Movers Coalition (FMC), setting a target of 5% of its 5% of its marine power will come from hybrid engines and zero-emission fuels by 2030, making clear its commitment to decarbonisation through the adoption of emerging technologies to accelerate a green and inclusive transition to a net zero future.

Led by the World Economic Forum and the US Government, the FMC is dedicated

to addressing the decarbonisation challenges of seven hard-to-abate sectors, aluminium, aviation, chemicals, concrete, shipping, steel and trucking, which collectively contribute to 30% of global emissions.

DP World has committed that by 2030, at least 5% of its short-sea shipping will be powered by zero-emission fuels through the introduction of two hybridelectric and five methanol-enabled vessels.

DP World expects its total demand for clean methanol to power the five vessels will be around 38,000 tonnes per year by 2030. Unifeeder Group, another part of DP World Marine Services, has already signed a long-term time-charter agreement for two new methanol-capable container feeder vessels, which will be deployed in Europe.

“Joining the First Movers Coalition is a clear signal of our intent to tackle the climate impact of our operations while maintaining the efficient flow of global trade,”remarked Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO. “Decarbonisation is a core focus for DP World, and as part of the First Movers Coalition, we’re able to work collectively with like-minded organisations to actively drive positive change,”commented Jesper Kristensen, Group Chief Operating Officer, Marine Services, DP World.

The FMC currently has more than 90 members, whose commitments will represent an annual demand of $15 billion for emerging climate technologies and 29mn tonnes of CO2 equivalent in annual emissions reductions by 2030.

Al-Futtaim Toyota secures major order from Cars Taxi n Al-Futtaim Toyota announced its selection by Cars Taxi, one of the country’s largest taxi service operators and part of Al Ghurair Investment, to supply 1,300 Toyota Camry hybrid vehicles, in a partnership that is set to accelerate the country’s green mobility shift.

This fleet expansion will bolster Cars Taxi’s existing fleet of approximately 4,000 vehicles, with 100% of its entire fleet now comprised of Hybrid / Compressed Natural Gas (CNG) vehicles.

In strategically identifying the Toyota Camry hybrid as the optimal choice for fleet expansion, Cars Taxi leveraged its longstanding relationship of more than two decades with Al-Futtaim Automotive to forge a partnership that aligns seamlessly with their vision for a greener and more sustainable future.

Al-Futtaim Toyota has been a trusted partner of taxi fleet operators in the UAE, having delivered over 10,000 Toyota Camry hybrids to both fleet operators

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and retail customers over the last two decades. Renowned for its low total cost of ownership, safety rating, fuel efficiency, and environmental benefits, the Camry continues to dominate the country’s taxi industry.

The agreement also covers the addition of the luxurious Toyota Granvia full-size MPVs to the VIP limousine fleet of Cars Taxi, including comprehensive maintenance solution for the limousine fleet covering both vehicle servicing and full body repairs.

“As an early adopter of hybrid vehicles in the UAE’s taxi industry, we are committed

to sustainability and reducing our carbon footprint. We exclusively considered hybrid vehicles, with the Toyota Camry hybrid standing out for its exceptional fuel efficiency and eco-conscious features,” commented Badr Abdulla Al Ghurair, CEO, Cars Taxi.

“This partnership with Cars Taxi is a continuation of our firm commitment to meeting the evolving demands as well as to developing the green mobility ecosystem in the country, as envisioned within the UAE’s Net Zero 2050,” remarked Jacques Brent, Managing Director, Al-Futtaim Toyota & Lexus.

NEWS KEZAD Group welcomes Kings Aluminium’s AED 750mn facility n Khalifa Economic Zones Abu Dhabi– KEZAD Group, the largest operator of integrated and purpose-built economic zones and Kings Aluminium Industries recently announced the commencement of construction for a state-of-the-art aluminium manufacturing and recycling facility in KEZAD. With a total investment of AED 750mn

by Kings Aluminium Industries, the facility in KEZAD will be spread across 100,000sqm of land leased from KEZAD Group for a 50-year tenure and will source its raw material from Emirates Global Aluminium, one of KEZAD Group’s anchor tenants in the Metals sector. EGA operates the region’s largest Aluminium smelter in KEZAD. The Kings Aluminium facility marks a significant step in the UAE’s efforts to localise manufacturing of various supply chains, utilise local raw material, enhance environmental as well as sustainability aspects in the production process, and promote the circular economy.

The facility will transform virgin aluminium and aluminium waste into

high-quality reusable materials, reducing the carbon footprint associated with aluminium production.

“This strategic investment by Kings Aluminium marks a substantial advancement in our zone’s industrial capabilities and economic prospects,” stressed Mohamed Al Khadar Al Ahmed, CEO, Khalifa Economic Zones Abu Dhabi-KEZAD Group.

“Signature assets like KEZAD’s hot metal road offer advantages such as energy conservation, improved product

quality, cost efficiency, and better integration in production processes,” commented Albert Melkias, CEO, Kings Aluminium Industries.

“This collaboration reinforces the project’s commitment to responsible business practices and further strengthens Kings Aluminium’s position in sustainable manufacturing and more importantly in its contribution to Abu Dhabi’s environmental goals,”remarked Robin Phillip, Founder and CEO, First Step FZC, partner in Kings Aluminium Industries.

Asendia and Emirates Post Group sign a strategic partnership n Asendia, the cross-border e-commerce specialist, recently signed a new Strategic Partnership with Emirates Post Group (EPG), the logistics market enabler of the United Arab Emirates (UAE).

The partnership agreement was signed

by Marc Pontet, CEO, Asendia Group and by Abdulla M. Alashram, Group CEO, Emirates Post Group.

The agreement will help e-tailers and consolidators expand their reach into the Middle East and covers the complete range of e-PAQ services (Standard, Plus and Select).

In addition, EPG will offer Asendia customers solutions tailored for the Middle East, through Emirates Post, its postal and courier business. The partnership is to launch in Q2-2024 operationally.

The UAE plays a crucial role in the global supply chain, with Dubai having an essential part in international trade routes between Europe and Asia. Using Emirates Post’s extensive network within the UAE, Asendia will expand its reach into the additional Gulf

Cooperation Council members and other countries within the region.

This partnership will enable Asendia customers from 17 countries to take advantage of the opportunity presented by the GCC, with E-commerce revenue in the region predicted to show an annual growth rate (CAGR 2022-2025) of 14.5% and to rise to €28.53bn in 2025, with more than €12bn for the fashion industry.

“This partnership with Emirates Post

Group makes serving these shoppers much easier for our customers. This is the latest in a series of announcements which allow retailers to use our solutions in regions where E-commerce is experiencing rapid and sustained growth,” commented Simon Batt, CEO, Asendia, UK. “Our focus is to enable the logistics market, making e-commerce more seamless and efficient for both consumers and businesses in the UAE and beyond,” remarked Alashram.

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NEWS Mubadala Energy announces major gas discovery in South Andaman, Indonesia n Abu Dhabi headquartered Mubadala Energy recently announced a significant gas discovery from the Layaran-1 Exploration well, drilled in South Andaman, about 100 kilometres offshore North Sumatra, Indonesia.

Mubadala Energy is the operator of the South Andaman Gross Split and this is the first deep water well operated by the company, drilled to a depth of 4,208m.

With an 80% working interest in South Andaman, Mubadala Energy is the largest net acreage holder in the area. In line with company’s gas-biased strategy, the positive outcome from the Layaran-1 discovery will de-risk multi-TCF of prospective gas resources in the area, providing the foundation for future organic growth and additional exploration drilling activities in 2024, according to a press communique.

“This is not only a significant development for Mubadala Energy but a huge milestone for Indonesia’s and Southeast Asia’s energy security. We are proud to have achieved this by leveraging our world class technical and operational capabilities,” affirmed Mansoor Mohamed Al Hamed, CEO, Mubadala Energy.

This new confirmed discovery is the second consecutive

successful well for Mubadala Energy in the Andaman area, coming after the success of Timpan-1 in Andaman-II, which itself came after success at Cengkih-1 in our SK320 in Malaysia.

These discoveries add material contingent volume and provide a platform for continued growth for Mubadala Energy in the region, the press statement concluded.

SAFEEN Group and SOCAR sign strategic MoU n SAFEEN Group, part of AD Ports Group, has inked a Memorandum of Understanding (MoU) with the State Oil Company of Azerbaijan Republic (SOCAR) to collaborate on a number of areas across Azerbaijan’s maritime and shipping sectors.

Azerbaijan, positioned strategically at a crossroads between Georgia, Kazakhstan, and Turkiye, could serve as a pivotal development area for SAFEEN Group, connecting Central Asia to global markets.

SOCAR, a fully state-owned national oil and gas giant, produces oil and natural gas in the Azerbaijani sector of the Caspian Sea. While engaging in the transportation and marketing of oil, gas, and petroleum products, they also play a crucial role in the economic development of Azerbaijan.

Under the terms of the agreement, both parties aim to leverage their respective strengths and vast experience to deliver a broad range of maritime and logistics services to elevate the maritime landscape in Azerbaijan and support key economic and strategic projects for both parties.

This includes shipping of crude and petroleum products, infrastructure development, and other cargo

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transportation. The intention is to also support the modernisation of onshore and offshore logistics, with a key focus on wind projects, advancing Azerbaijan’s renewable energy goals.

“This MoU with SOCAR opens new avenues for prospective multifaceted synergies in the maritime and shipping sector. Azerbaijan’s strategic location and SOCAR’s expertise would ensure a dynamic platform for elevating maritime services,

infrastructure, and logistics in the region,” commented Captain Ammar Al Shaiba, CEO-Maritime Cluster and SAFEEN Group, AD Ports Group.

“Collaborating with SAFEEN Group offers the potential to amplify Azerbaijan’s maritime capabilities. We anticipate this partnership will drive our country’s maritime growth and accelerate offshore and onshore wind projects,” remarked Afgan Isayev, Vice President, SOCAR.

NEWS SPARK marks significant progress milestones with new tenant n King Salman Energy Park (SPARK), the leading industrial ecosystem, announces lease agreements with two new tenants and the start of construction for key existing tenants. These developments mark a significant milestone for SPARK as it drives localization of key products and services within the energy value chain.

The new lease agreements, totalling over SAR 30mn represent significant investments in driving sustainable industrial growth in the Kingdom. Abdulaziz & Brothers Safety Manufacturer (A&BC Reliable Protection), which produces high-quality Personal Protective Equipment (PPE) will set up their first facility at SPARK for the industrial and construction sectors.

Meanwhile, Enjaz Al-Mustaqbal Industrial Company (Future Achievements) plans to establish a new manufacturing facility to support heating, ventilation, and air conditioning (HVAC) sector localization efforts.

Construction has also begun across

key projects at SPARK, with a total investment value of SAR 250mn. Global technology software and engineering powerhouse, Emerson, has also begun construction of its advanced technology operations in SPARK, which are expected to be operational in Q4-2024.

SPARK continues to play a pivotal role in cementing Saudi Arabia’s position as a global energy, industrial, and technology hub in line with Saudi Arabia’s Vision 2030 objectives to increase local manufacturing capacities. The

ongoing development of these projects underscores SPARK’s progress and commitment to advancing localization efforts in Saudi Arabia.

“Our recent strides, including welcoming new tenants and initiating construction on key projects, drive our ambitions forward. As we anticipate forging new alliances, together with our partners, we take pride in fostering sustainable growth and innovation in the Kingdom and beyond,” stated Saif Al Qahtani, President, and CEO, SPARK.

REGENT and Aramex embark on sustainable cargo logistics collaboration n REGENT, the US-based electric seaglider manufacturer and Aramex have announced a strategic Memorandum of Understanding (MoU) to partner on the implementation of electric seagliders for middle mile logistics.

Seagliders are a new mode of transportation that combines the speed of an aircraft with the convenience of a boat.

Purpose-built to serve coastal and island communities, seagliders operate exclusively over the water and leverage existing dock infrastructure to carry people and cargo up to 290 km using today’s battery technology.

REGENT and Aramex will work together to assess the feasibility of integrating REGENT’s high-speed seagliders into Aramex’s existing logistics network. The focus will be on identifying potential middle mile routes where seagliders can transport cargo from primary ports to secondary coastal distribution nodes while providing a cleaner, more efficient alternative to existing transport options.

“The partnership with REGENT aligns well with this resolve, allowing us to explore the transformative potential of

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cutting-edge technologies such as electric seagliders, opening up new possibilities for efficient and sustainable middle mile logistics in the Middle East and beyond,” affirmed Alaa Saoudi, Chief Operating Officer-Express, Aramex.

“We are keen to enhance our capabilities to move packages efficiently and effectively over sea routes given the expansion and development of coastal cities within our core region. This completes the trifecta of air, sea and land for our future vehicle

program development,” commented Angad Singh, Global Director, Innovation, Aramex.

“Middle mile logistics is a large, untapped opportunity for sustainable innovation.

Working with forward-thinking logistics partners like Aramex will unlock new economic potential across our markets. This collaboration showcases both the multimission capabilities of electric seagliders and REGENT’s accelerated growth in the region,” remarked Billy Thalheimer, CoFounder and CEO, REGENT.

NEWS Majid Al Futtaim and engazaat Sign a Solar Power Agreement at COP28 n Majid Al Futtaim has signed a solar power agreement protocol with engazaat, the award-winning Egyptian solar water company focused on providing innovative clean technology in the Middle East and Africa, to provide 20+ megawatts of solar power capacity in four Majid Al Futtaim properties in Egypt and Lebanon.

The agreement was signed during the United Nations Climate Change Conference COP28 in Dubai, UAE, by Khalifa Bin Braik, Chief Executive Officer, Majid Al Futtaim–Asset Management Business and Muhammad El Demerdash, Co-Founder and CEO, engazaat. engazaat’s solar plants will generate 737 million kilowatt-hours of clean electricity all over the project’s lifetime to power Majid Al Futtaim Properties retail assets including Mall of Egypt, City Centre Maadi, City Centre Alexandria in Egypt, and City Centre Beirut in Lebanon.

The solar systems on the rooftops and carports of the four properties are expected to offset over 3mn MT of carbon dioxide emissions over a span of 25 years.

“Aiming to generate and distribute

power in the shopping malls in both countries in 2024, this partnership is projected to create more than 2000 jobs, foster more than US$ 20mn in Foreign Direct Investment, and lay the groundwork for over US$ 100mn of potential FDI expansions in green investments in Egypt,”stated Bin Braik.

“From COP27’s ‘Together for Implementation’ to COP28’s ‘Unite, Act, Deliver,’ this business partnership is a manifestation of Egypt and the UAE’s

committment to the UN Sustainable Development Goals,” remarked El Demeresh.

According to the agreement, engazaat as the project’s Independent Power Producer (IPP) will develop the solar assets that will be installed at Majid Al Futtaim’s retail properties in Egypt and Lebanon based on a ‘design, finance, build, own, and operate’ model – without upfront capital investments or any operational burdens, a press communique concluded.

Zajel strengthens global presence with membership in three major international alliances n Zajel has announced its official membership in three distinguished international alliances— the International Air Transport Association (IATA)-National Association of Freight and Logistics (NAFL), JC Trans Elite, and DF Alliance by DP World.

This strategic initiative is aimed at bolstering networking capabilities, establishing global partnerships, reducing costs, and enhancing operational efficiency, thereby solidifying Zajel’s position as a dynamic force in the evolving landscape of the logistics sector.

By aligning with these alliances, Zajel gains access to an extensive network of global partners, fostering collaborative efforts that transcend geographical boundaries.

This interconnected network enables Zajel to tap into a wealth of industry expertise, share best practices, and stay abreast of the latest trends and innovations in logistics.

Through collaborative ventures with partners worldwide, Zajel aims to extend its reach, providing comprehensive logistics solutions to a broader clientele and establishing itself as a key player in the global supply chain.

This strategic move is centered on reducing costs and increasing operational efficiency. By leveraging the resources and expertise of its

alliance partners, Zajel can optimize its supply chain, streamline operations, and implement cost-effective solutions.

These memberships signify Zajel’s dedication to staying at the forefront of the logistics sector’s evolution. It’s about embracing innovation, staying connected with global industry leaders, and actively participating in shaping the future of logistics.

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NEWS Al-Hatab Bakery trusts Daikin Refrigeration Solutions in KSA n Daikin Air Conditioning Saudi Arabia, a leading manufacturer of Air Conditioning, Heating, Ventilation, & Refrigeration solutions, recently announced its agreement signed with Al-Hatab Bakery Factory 2 in Sudair Industrial Area, Saudi Arabia.

Al Hatab Bakery’s strategic expansion to implement climate-friendly refrigeration solutions in its business model is in line with Daikin’s agenda to support its partners and customers in adopting advanced and sustainable cooling solutions.

The agreement was signed by Ammar Al Daajan, Vice President, Al-Hatab Bakery, and Shinji Jodo, Managing Director, Daikin Saudi Arabia. It consists of supplying, installing, and commissioning 11 Daikin Zanotti Ammonia compressors, 150 coolers, and 6 Evaporative Condensers along with all other plant room equipment on a turnkey basis.

“Daikin has played a crucial role from the early stages of the factory’s establishment and was able to meet our requirements, by providing our consultants with the technical information needed promptly. We are confident that Daikin will deliver on their commitments as they usually do,” remarked Hany Elbegawi, Executive Manager, Al Daajan Construction.

“Al Hatab Bakery is our long-standing trusted partner, and we are looking forward to achieving another milestone together,” commented Jodo.

Daikin has over 100 years of experience as a comprehensive manufacturer, the company offers a ‘total solutions’ strategy that combines refrigeration, heating, air conditioning, and air handling systems to meet the strict demands of the food industry and deliver lower running costs.

Daikin provides a diverse product line-up for all aspects of the entire cold chain that covers food production and processing, transportation, storage warehouses, and stores, a press communique concluded.

Tetra Pak and United Paper Mills announce next step in landmark agreement n Tetra Pak and Union Paper Mills (UPM) have entered the next stage of their partnership, marked by the signing of a ground-breaking AED 2.5mn recycling agreement aimed at establishing a commercially viable collection and recycling value chain for used beverage cartons (UBC) in the UAE. A memorandum of understanding was signed in November last year and has paved the way for significant progress in identifying the technical and investment needs for the recycling of UBC in the UAE. Since the signing of the MoU, Tetra Pak and UPM have engaged in extensive collaboration, including technical assessments, recycling expert visits from abroad, numerous meetings, and industrial trials with carton packages collected from local dairy producers.

The formalisation of this first-of-its-kind partnership outlined Tetra Pak’s investments in capital expenditures (CAPEX) for new equipment to be installed at UPM. Recycling targets and key performance indicators

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(KPIs) are defined and agreed upon, as well as areas of collaboration in developing the collection and recycling of UBC in the UAE are identified.

“Tetra Pak’s strategy aims to involve waste management and collection companies, to reach out to potential partners in the region, and to collaborate with our customers and schools to raise awareness about waste segregation and recycling. By involving diverse stakeholders, we aim to create a comprehensive and

effective recycling ecosystem,” commented Niels Hougaard, Managing Director, Tetra Pak Arabia Area.

“This new collaboration with Tetra Pak supports our sustainable growth plans, enhancing our recycling capabilities to process UBC and obtain high-quality raw materials for our operations while supporting the UAE’s ambitions to increase recycling,” remarked Salahhaldin Sharafi, Chairman, MAHY Khoory Group, which owns UPM.

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