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July/August 2018 Issue 50

ENHANCING THE BUSINESS OF LOGISTICS

TECH TIMES Keys to better business

Future cities

Smart and indispensible

Connected aviation

Saving cash and the environment

Fleet management technology Better driver performance


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                                                                  

         

Bespoke Logistics Project of the Year 2017

Domestic Logistics Service Provider of the Year KSA 2017

GCC Supplier Of The Year 2017 KSA Supplier Of The Year 2017


Tech times SIGNATURE MEDIA FZ LLE P. O. Box 49784, Dubai, UAE Tel: 04 3978847/3795678 Email: info@signaturemediame.com Exclusive Sales Agent Signature Media LLC P.O. Box 49784, Dubai, UAE Publisher: Jason Verhoven jason@signaturemediame.com Managing Editor: Munawar Shariff munawar@signaturemediame.com Art Director: B Raveendran ravi@signaturemediame.com Production Manager: Roy Varghese roy@signaturemediame.com

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We are living in exciting times. Technology is changing everyday and affecting how we lead our lives both at work and at play. Businesses are changing to keep pace and the way operations are handled. Because we’ve all heard it - if we don’t keep up we lose out. We have quite a few interesting articles on the theme of technology in this issue. Besides the cover, we have a detailed article on the connected aircraft, enabled by satellite communications, which has the potential to save airlines US$15 billion annually in operational efficiencies and 21.3 million tonnes of CO2 emissions by 2035. These efficiencies include fuel savings, a reduction in delays, innovations in maintenance processes, air traffic management enhancements, safety improvements and others. Based on current connected aircraft numbers, the research finds that together these efficiencies can generate up to a one per cent reduction in the US$764 billion spent by airlines each year in operating costs worldwide. This equates to 20 per cent of the forecast global aviation industry net profit in 2018 (US$38.4 billion). As the adoption of connected aircraft is set to rise exponentially, this cost saving is expected to double, saving airlines up to US$15 billion globally by 2035. Read more on page 44. Our Guest column on Future smart cities on page 56 by Moe Raslan, Regional Sales Director for Ruckus Networks in the Middle East and Africa, is another interesting read. It looks at how useful a smart city is for all types of its residents and visitors. Plus there are port reports and happenings of the air cargo industry among a host of other stories. Do let us know your thoughts. And we’ll see you back in September. Have a great summer.

Munawar Shariff Managing Editor munawar@signaturemediame.com

JULY/AUGUST 2018 3


July/August 2018 Issue 50

ENHANCING THE BUSINESS OF LOGISTICS

27 06 News 16 Country report Sharjah, UAE Sharjah expands infrastructure and invests heavily in port development Sharjah is uniquely placed to take advantage of the region’s geographical position

27 Cover Tech times Tech trends that logistics providers and shippers will really depend on to gain advantages and benefits in their businesses

32 Electromobility for a better tomorrow Volvo Trucks Innovation Days 2018 4 JULY/AUGUST 2018

35 The definitive guide to vehicle telematics Smart driving helps educate companies with large fleets. FMS Tech’s white paper on the subject takes us through how technology can help improve driver performance

40 Agility and Suez Canal Economic Zone develop logistics hub Agility works together with the Suez Canal Economic Zone to create a logistics centre in East Port Said, one of the most important sites on the Mediterranean Sea

44 Connected aircraft to save aviation industry Aviation technology enabled by satellite communications has the

potential to save massive costs for the airline industry

48 Turkish Airlines broadens its horizons Turkish Cargo joins with Chinese cargo giant ZTO and Hong Kong based PAL Air Ltd.

52 The supply chain gets a makeover With the advent of digitalization, the supply chain industry is getting a complete new look

56 Future cities – what to expect? The Internet of Things (IoT) is gaining traction, impacting every area of our lives and quickly turning “Smart Cities” from intangible visions of the future into a reality


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Roambee enters Southeast Asia IoT market

Saudia Cargo launches pharmaceutical cold storage facility at KAIA Saudia Cargo has recently inaugurated one of the region’s newest and most modern cold storage facilities of pharmaceuticals and medicines at King Abdulaziz International Airport (KAIA) to meet the surge in demand for highlysensitive and temperature-controlled shipments. The refrigerated warehouse was opened in conjunction with launching FlyPharma, an innovative product designed specifically to meet the growing demand for the pharmaceutical and life sciences sector. “The new facility boasts a 1,010 sq metres of pharmaceutical handling space with double operational capacity and conforms to the international standards of the World Health

Organization, the European Committee for Medicinal Products for Human Use as well as the local standards of the Saudi Food and Drug Authority,”said Omar Hariri, CEO, Saudia Cargo. The center ships and stores pharmaceuticals using the most advanced technologies along with sophisticated active temperature control containers, which require advanced passive solution technology, especially for products needing transportation between +2oC to + 8oC or +15oC to + 25oC. Saudia Cargo aims to open more similar facilities Kingdom-wide in line with its vision and is currently planning to launch an 800 sq metre specialist pharmaceutical handling facility in Riyadh offering FlyPharma services.

Almajdouie wins LSP of the year 2018 Almajdouie Logistics was recently awarded Frost & Sullivan’s KSA Logistics Services Provider of the Year for 2018. This is the third year in a row that Almajdouie has won this award.

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Roambee, the Internet of Things (IoT) supply chain and enterprise asset visibility company, recently announced it has received US$2 million in funding from MDI Ventures, Telkom Indonesia’s corporate venture capital firm. With this, Roambee is nearing the completion of US$10M in funding and rapid expansion across seven countries in just 14 months. MDI’s investment will be used to fuel Roambee’s entry into Indonesia and Southeast Asia’s booming logistics market. Roambee’s first customer in the region will include Telkom Indonesia, the largest telecommunication services company in Indonesia. “The opportunity in Indonesia is huge,”says Roambee CEO Sanjay Sharma. “It’s one of the largest in the world, with almost 24 per cent of the country’s GDP spent on logistics. With MDI’s investment, Roambee gains a significant advantage in quickly assuming a leadership position in driving the enterprise digital transformation of Indonesia across supply chain shipment and asset monitoring visibility.” Global investment dynamics are changing with Asian VC funds, such as those from MDI, outpacing US VC investments for the first time. Related, recent research shows that Indonesia’s logistics market is expected to reach USD $240 billion by 2021.


Turkish Cargo relocates live animals safely Offering services to 122 countries, Turkish Cargo has just relocated three 16 month-old giraffes from Johannesburg to Tehran victoriously, by means of a connecting flight via Istanbul. During the flight, the giraffes were accompanied by their keepers, veterinarians and IATA Live Animals Regulation (International Air Transport Association Live Animals Regulations) certificated personnel of Turkish Cargo. During the recent period of one month, Turkish Cargo, which provides conditions in the sky that are much of the conditions in the natural living environment by exercising maximum care for the live animal shipments, has victoriously relocated 10 lions, seven of

which were cubs, from Johannesburg to Pakistan, and 10 giraffes to Bangladesh, and four elephants to the United Arab Emirates, and three monkeys from the Democratic Republic of the Congo to Ukraine, by means of a connecting flight via Istanbul. For the purpose of performance of the live animal transportation service, it offers to its customers, Turkish Cargo carries out its such operations as based on the IATA LAR during the course of its acceptance, storage and shipment processes, and it meticulously implements the documentation, encaging, labeling and marking guidelines as described under the said regulations.

Boeing and Turkish Technic announce global fleet care supplier agreement

Turkish cherries - on track to go global By making use of its widebody freighters, Turkish Cargo, now moves the Turkish cherry to Oslo, Norway. During the cherry season (June, July, August), a total of 600 tonnes of Salihli cherries (Bing Cherry) will be transported to Oslo by 10 dedicated (charter) A330 freighter flights. They will go on sale at more than 1,600 groceries throughout Norway. The cherry, growing cities of Izmir, Manisa, Isparta, Adana, Konya and Kahramanmarasront cultivate the fruit at elevations between 500 and 2,500 metres in the uplands of the Toros Mountain. Once picked and sorted for size,

the cherries are loaded into airconditioned trucks in pallets of five kilograms each, and are brought to Istanbul’s Ataturk Airport. It takes less than six hours for the entire process for the cherries to be put on the plane, transported and deplaned. Flight time to Norway is about three hours. Veysel Tuysuz, an export merchant says,“All our products are sold in Norway within six days. Our exports have increased year-on-year by 30 per cent and we have received interest from eight new countries. The speed and capacity advantage offered by Turkish Cargo is a great opportunity for us, the exporters.”

Boeing and Turkish Technic Inc., the maintenance, repair and overhaul (MRO) arm of Turkish Airlines, announced recently their Global Fleet Care supplier agreement. Turkish Technic is now a strategic Boeing supplier for line maintenance, heavy maintenance of airplanes, component service and repair. Boeing and Turkish Technic will collaborate together in the training and certification of technicians from different parts of the world. “We provide a broad portfolio of MRO services in 50+ International Line Maintenance locations as well as our existing base maintenance facilities in Istanbul and Ankara. In

addition to the current services we provide, more will be available to our customers at our brand-new facilities, located Istanbul New Airport as of 29th October 2018,”said Ahmet Karaman, General Manager of Turkish Technic Inc. “Positioning Turkey as a global player in aviation services is one of the key elements of the Boeing Turkey National Aerospace Initiative we announced last year. With this agreement, we are taking our successful collaboration with Turkish Technic one step further in a manner that aligns to the growth of Boeing and Turkey,”said Marc Allen, President of Boeing International.

JULY/AUGUST 2018 7


From right to left: His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai and Steve Tzikakis, President South Europe, Middle East and Africa, SAP experience Smart City innovations at Area 2071.

Area 2071 and SAP collaborate on UAE public sector excellence Area 2071, the physical embodiment of the UAE Centennial 2071 Plan, has announced that it will be collaborating with global technology company SAP on innovations to help inspire creative minds and fuel digital government.

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His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates (UAE), and Ruler of Dubai, recently launched Area 2071, an initiative by the Dubai Future Foundation, as an interactive platform

to develop creative solutions, implement ideas to serve humanity, and design a better future for next generations, and to make the UAE the world’s best country by 2071. “Area 2071 is bringing together the UAE’s public sector resources and vision, and private sector experience, to enable our future government priorities,”said Abdulaziz Al Jaziri, Deputy CEO at Dubai Future Foundation. “Collaborating on the SAP Leonardo Center will catalyze public sector innovation, and train young talents on enabling a fully digital government.” SAP is planning to establish its Leonardo Center at Area 2071, joining a global network in Bangalore, New York, Paris, and São Leopoldo. At the Leonardo Center, customers, partners, startups, and educational institutions can pilot solutions on the SAP Leonardo digital innovation system. “Area 2071 will be a global lighthouse for public sector excellence, with world governments being inspired by the UAE vision and government’s co-collaboration and co-innovation with our SAP Leonardo Center,”said Steve Tzikakis, President South Europe, Middle East and Africa, SAP.“Our planned Leonardo Center will enable the private sector ambition and strength to explore how to run better, improve people’s daily lives, and transform citizen happiness. We are committed to training young Emirati talents to take the lead in driving future government innovation.”


Tristar Group’s Jebel Ali warehouses receive DMCC’s 5-star rating

Abu Dhabi Fund for Development allocates AED67 million to Yemen Abu Dhabi Fund for Development (ADFD) and the Emirates Red Crescent (ERC) signed a MoU to manage the AED67million (US$18.3 million) UAE government grant aimed to support the healthcare sector in Hadhramaut Governorate in Yemen. The grant aims to support three healthcare projects in Yemen’s Hadhramaut Governorate including rehabilitating hospitals, reconstructing the Maternity and Child Hospital, as well as purchasing medicines and medical equipment.

Aimed at providing quality medical attention to Hadhramaut’s population, the hospital rehabilitation project will overhaul and equip seven hospitals in the region. Encompassing maintenance, construction and electrical works, the second project will revamp the Maternity and Child Hospital through boosting its capacity with 150 additional beds, as well as through the provision of necessary medical supplies and equipment. As part of the third project, ADFD will purchase supplies of essential medicine for the Governorate.

ADFD to support sustainable development in Ethiopia

economy and encourage joint investments. His Excellency Mohammed Saif Al Suwaidi, Director General of ADFD, and His Excellency Teklewold Atnafu, Governor of the National Bank of Ethiopia, signed a memorandum of understanding (MoU) outlining the terms of the funding in Addis Ababa, the capital of Ethiopia. The signing ceremony was held on the side-lines of His Highness Sheikh Mohammed bin Zayed Al Nahyan’s, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, official visit to Ethiopia. Government officials and senior representatives of the two entities also attended the signing ceremony.

Abu Dhabi Fund for Development (ADFD) allocated an AED11 billion (US$3 billion) economic aid package to the Ethiopian government to support sustainable socioeconomic development in that country. The purpose of the funding is twofold. ADFD deposited an amount of AED3.7 billion (US$1 billion) in the National Bank of Ethiopia to bolster the country’s fiscal and monetary policy, as well as to enhance the liquidity and foreign exchange reserves of its central bank. The remaining AED7.3 billion (US$2 billion) seeks to stimulate the Ethiopian

Tristar Group’s two warehouses located in the Jebel Ali Industrial Area 1 and 2 were awarded a 5-star rating by Dubai Multi Commodities Centre (DMCC) for the second and third consecutive years, respectively. Shivananda Baikady, General ManagerRoad Transport and Warehousing, Tristar, said,“Our specialised warehousing facilities are designed to accommodate and handle dangerous and non-dangerous goods with stringent adherence to health, safety and environmental standards. We are proud to receive consecutive 5-star rating by DMCC for our warehouses in Industrial Area 1 and 2. It is a reflection of excellence in our dayto-day operations. The rating is also a sound testament to our best-in-class warehousing service for major oil companies.” The focus areas of the audit include statutory compliance, physical infrastructure, HSE systems, security, fire control, dangerous goods handling, inventory management, risk coverage, IT infrastructure, housekeeping, facility management, certifications, administration and performance measurement.

JULY/AUGUST 2018 9


Etihad Airwars clears it biennial IATA safety audit Etihad Airways successfully passed the biennial IATA Operational Safety Audit (IOSA). The Abu Dhabi-based airline met all required standards – with the highest possible result of zero findings and zero observations – after the IOSA team examined more than 800 of the airline’s safety procedures and processes in detail.

IOSA seeks to ensure that airlines are compliant with safety requirements and recommended practices determined by IATA and is the most important examination of Etihad’s operations. Richard Hill, Etihad Airways’ Chief Operations Officer, said: “Safety is Etihad’s number one priority and the IOSA results

Hormann introduces door type V3009 for integration in conveyor systems Hormann has introduced door Type V3009, a high-speed roller door with a flexible curtain, designed for a high number of automated opening and closing cycles. It can be fitted between the operating sections and the storage areas within a conveyor system. Due to the low lateral space requirements, this door is specifically designed for integration in conveyor systems and their frequent automated opening and closing cycles. The door control can be integrated in existing PLC systems. A volt-free

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contact reports the door position (open / closed) to the control. According to Darius Khanloo, Managing Director, Hormann Middle East, “Hörmann high-speed doors are up to 20 times faster than conventional industrial doors, which is why the intelligent operator and control technology is designed for reliable continuous operation. Our new door Type V3009 is suitable for interior application, and it’s width and height are up to 3500 mm.” The opening speed is 0.8 m/s

are testament to our all-encompassing safety culture.” IOSA is mandatory for all IATA member airlines, reviewing standards in eight operational areas, including operations management, flight operations, cabin operations, maintenance, flight dispatch, ground and cargo operations and security.

and closing time is 0.8 m/s. The door uses aluminium curtains, available in a variety of colours

including zinc yellow, pure orange, carmine red, gentian blue and agate grey.


Abu Dhabi International Airport achieves sustainability milestone Abu Dhabi International Airport (AUH) has earned an accreditation level of ‘reduction’ from the Airports Council International’s (ACI’s) Airport Carbon Accreditation programme. The programme provides a unique common framework and tools for active carbon management at airports, covering operational activities that contribute most to carbon emissions. In 2011, AUH was the first airport in the Middle East and North Africa region to be ACI Airport Carbon Accredited in the “mapping” level, and the achievement of an accreditation level of ‘reduction’ recognises Abu Dhabi Airports’ continued commitment to helping fight climate change through the management of its carbon dioxide emissions. This year, having fulfilled the requirements of the ‘mapping’ accreditation level during the previous six years, Abu Dhabi Airports initiated its seventh application to the program by providing evidence of its effective carbon management procedures, target setting, and by demonstrating that a reduction in Abu Dhabi International Airport’s carbon emissions had occurred through an analysis of consecutive years of emissions data.

DC Aviation Group continues to grow its Aircraft Management fleet Stuttgart headquartered DC Aviation Group (DCA), the German joint venture partner of DC Aviation Al-Futtaim (DCAF), continues to grow its aircraft management fleet with the addition of a Dassault Falcon 7X. The new aircraft is also available for charter flights for DC Aviation Al-Futtaim clients in the region through DCA’s subsidiary – DC Aviation Malta. With its three highperformance engines and

cutting-edge aviation technology, the Falcon 7X provides extraordinary range and efficiency. Its uniquely quiet cabin with a standing height of 1.88 m, offers unmatched

New sleeping facility for transfer passengers in Terminal 3, Abu Dhabi Airport Abu Dhabi Airports recently announced the opening of Aerotel’s new airport transit sleeping facility at the Abu Dhabi International Airport. The latest addition marks the airport’s second facility that is operated by Aerotel of Plaza Premium Group. Open 24 hours a day, the hotel offers flexible hourly booking slots which gives easy access for transit passengers seeking a quick power rest. Its offers include a 2-hour day package between 09:00 to 20:00 and a 4-hour night package available from 20:00 to 9:00.

Saoud Al Shamsi, Acting Chief Commercial Officer (ACCO) of Abu Dhabi Airports said,“With more than 20 million people transiting through the airport, the establishment of Aerotel’s new hotel facility cements Abu Dhabi Airports’ position in providing world-class solutions to best accommodate such demand.” Aerotel can also be found in Terminal 1, which presents 38 spacious rooms divided into three categories: solo room, double plus and double squared that is ideal for solo to family travelers respectively.

comfort for up to 12 passengers. Its range of over 11,000 km makes it a popular aircraft to charter. In addition, the aircraft is equipped with globally available satellite-based internet

connectivity via Wi-Fi, a cabin and entertainment management system, and satellite telephone. Holger Ostheimer, Managing Director of DC Aviation AlFuttaim, said,“With the addition of the 7X to DC Aviation Group’s portfolio, we are able to offer our clients in the region access to this aircraft for their charter needs. With its extended range, customers can fly non-stop from Dubai to most parts of North America or the Far-East without having to stop for refuelling thereby offering maximum convenience.” DCAF is a joint venture between DC Aviation GmbH and Dubai-based Al-Futtaim.

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Emirates SkyCargo signs milestone MoU with Cainiao Network to use Dubai as a hub Emirates SkyCargo, the freight division of Emirates and the largest international cargo airline, has signed an MoU with Cainiao Smart Logistics Network Ltd. (“Cainiao”), the logistics arm of the Alibaba Group, to jointly facilitate the delivery of cross-border parcels as Cainiao looks to expand its global logistics infrastructure with Dubai as a hub. The MoU was signed by Nabil Sultan, Emirates Divisional Senior Vice President, Cargo and Xiaodong Guan, General Manager of Cainiao Global Business at Cainiao’s global headquarters in Hangzhou. It is a landmark agreement for both Emirates SkyCargo and Cainiao to leverage each other’s strengths in crossborder e-commerce trade and airline cargo operation. It will also support Cainiao’s broader efforts to offer enhanced customer experience. Cainiao recently unveiled plans to develop six global hubs in six cities around the globe. Dubai is one of them. Under the terms of the MoU, Emirates SkyCargo and Cainiao will work closely to manage e-Commerce shipments in the Middle East and other neighbouring regions through Dubai. Further details of the tie-up

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will be announced progressively as they are developed by the two parties. E-commerce is one of the strongest growth areas for the air cargo industry globally. Emirates SkyCargo has been exploring opportunities to collaborate with players in order to offer value-added services over and above cargo capacity between airports, using the strategic advantages of Dubai as a hub. “We are delighted to be entering into this agreement with Cainiao. The MoU that we have signed today is the first step in what will be a deep and fruitful relationship between Emirates SkyCargo and one of the biggest players in the global e-commerce supply chain,” said Mr. Nabil Sultan, Emirates Divisional Senior Vice President, Cargo.“With Emirates SkyCargo’s network spread, frequency of flights including close to 50 weekly flights from China, our state-of-the-art hub facilities and the strategic location of Dubai which allows it to serve as an effective logistics hub for the region, we are confident that we will be a strong partner for Cainiao to bring an enhanced experience to their customers in the Middle East and neighbouring regions.” “As a key gateway that links Asia and

Nabil Sultan, Emirates Divisional Senior Vice President, Cargo with Xiaodong Guan, General Manager of Cainiao Global Business at the MoU signing

Europe, Dubai is well positioned to help us achieve our goal of 72-hour global delivery. The MoU with Emirates SkyCargo is another milestone to reach this goal,”said Xiaodong Guan, General Manager of Cainiao Global Business.“We have a strong commitment to Dubai and the neighbouring markets. This fits well with our broader strategy.” Emirates SkyCargo offers cargo capacity to over 155 global destinations on a modern all-widebody fleet of 267 aircraft including 14 freighters- 13 Boeing 777-Fs and one B747 F. Emirates operates two state of the art Emirates SkyCentral cargo terminals in Dubai to manage cargo from passenger as well as freighter aircraft. Emirates SkyCargo has developed a number of transportation solutions targeted at specific industry verticals. As a technology company, Cainiao leverages cutting edge big-data technology and open collaboration to build a global infrastructure that links all the logistics elements to improve delivery efficiency and customer experience for all players along the supply chain. Cainiao’s vision is to deliver anywhere in China within 24 hours, and across the globe within 72 hours.


DAFZA targets growing trade opportunities with South Korea Dubai Airport Freezone Authority (DAFZA) has announced a new strategic partnership with Daegu Gyeongbuk Free Economic Zone Authority (DGFEZA) in South Korea. The MOU aims to increase collaboration between the two parties and expand bilateral trade between the free zones. The MoU was signed in the presence of H.E. Mohammed Al Zarooni, Director General of DAFZA and Ms. Inseon Lee, Commissioner, DGFEZA. DAFZA is a regional hub for leading Korean companies including KOLON GLOBAL, Halla Holdings, MOORIM, LEADERS, ATLASBX and SB and others. DAFZA runs a number of initiatives focused on increasing cooperation and business opportunities with South Korea, including recently welcoming a high-level official trade delegation from the Republic led by His Excellency Hyun-Soo Kim, Consul General of South Korea. As part of the agreement, DAFZA and DGFEZA will work together to promote mutually beneficial investments, and increase levels of knowledge transfer and information sharing on both markets and trade. A major focus of the partnership will be on cooperation within information technology, innovation, cross-border e-commence, shipping and logistics. DGFEZA will encourage South Korean investors to set up their businesses in DAFZA whilst at the same time DAFZA will facilitate offers and incentives to the companies from DGFEZA that have been referred as a result of the partnership. DAFZA will also encourage Dubai financial investors to invest in Korean-Dubai joint venture companies. Both parties will conduct high-level visits and consultations, particularly focusing on economic policies and business advisory services. Dubai’s non-oil trade with South Korea has increased steadily in recent years, reaching US$7.5 billion in 2017. South Korea is a major source market for electric and electronic products and machinery that are re-exported through the Emirate to key markets in the region such as Saudi Arabia. South Korea’s Korea Electric Power Corporation (KEPCO) is also the prime contractor for the UAE’s peaceful nuclear energy program.

DAFZA announces development of Dubai Blink Dubai Airport Freezone Authority (DAFZA) has announced the development of Dubai Blink, the world’s first B2B smart commerce platform. It will utilize artificial intelligence (AI), blockchain technology and virtual business licenses, allowing companies from around the world to connect and trade via Dubai. As one of Dubai 10X initiatives, Dubai Blink was presented to Dubai Free Zones Council, which is being chaired by His Highness Sheikh Ahmed Bin Saeed Al Maktoum. Dubai Blink will transform the future of global supply chains by creating a new trade platform for global free zone companies. The project offers a new form of e-commerce known as smart commerce, which utilizes Artificial Intelligence algorithms and Internet of things technology that will drive innovation within supply chains, placing Dubai and the UAE in unique positions at a global level. The initiative will enable both global companies and small and medium-sized enterprises (SMEs) to set up digital businesses in Dubai free zones without the need to be physically there. Blink will be replacing the existing trade licensing solutions empowered through process innovations and technologies by introducing virtual company formation. The announcement comes in support of Dubai and the UAE’s vision to create smarter digital economies driven by innovation and technology. It is expected that the value of global B2B e-commerce will reach USD 7.7 trillion in 2017.* The Free Zone Council accepted DAFZA’s proposal to form a joint

team from free zones to work with government entities in an integrated and interactive way on the project. This is expected to stimulate and grow foreign direct investment in Dubai and allow the free zones to operate more efficiently in the coming years. Dubai Blink will speed up trade in free zones by providing comprehensive solutions for companies to search for services and products, negotiate, and make purchases online via a unified platform using blockchain smart contracts and machine learning. The first issue it will help solve is around identification. Currently, there are lengthy supplier identification and validation processes. AI algorithms will provide researchers tailored results in a fractional time. The second challenge it will solve is around transactions. International trade barriers, regulations and transaction fees add unnecessary layers of complication to B2B commerce. The convergence of free zone setups, AI, and blockchain, will radically cut cross-border transaction costs and time. This will help in guaranteeing efficiency and enhancing economic growth. Dubai Blink will provide global companies with the opportunity to gain a virtual business license which will be known as a Cloud trading license. This will enable them to explore the commercial opportunities offered by Dubai without the need for an actual presence on the ground, allowing companies to sample and test the regional market and explore the opportunities provided in Dubai. In turn, this will encourage more of them to expand their businesses in the free zones, thus creating more jobs and contributing to GDP.

JULY/AUGUST 2018 13


dnata acquires majority stake in baggage storage and delivery service company, DUBZ

Technology and tracking

dnata acquires majority stake in baggage storage and delivery service company, DUBZ Passengers flying out from Dubai can now enjoy the convenience of checking in their baggage and getting their boarding passes from their home or hotel. dnata is launching these new services through baggage technology and logistics company - DUBZ, in which it recently acquired a majority stake. DUBZ was started in 2016 by three entrepreneurs who saw the opportunity to provide a practical and technology-enabled service to travellers in Dubai – the collection of baggage from their homes or hotels before a flight, and delivery of bags to the home or

hotel on arrival in Dubai. Available 24 hours a day, the service can be booked online at www.dubz.com. DUBZ is a winner of Intelak, a travel, aviation and tourism incubator led by the Emirates Group in partnership with GE and Dubai Tourism to support the UAE’s ambitions in setting the highest global standards for services, systems, and experiences in aviation. Since its launch, the company has seen strong demand for its services from customers who want a hassle-free journey to and from the airport, especially when travelling in groups.

From bag collection and delivery, to full home check-in service At present, the company collects the baggage from the passenger’s home or hotel, seals and weighs the bags, securely transports them to Dubai International Airport and hands them over to the passenger for self-check in. Upon arrival into Dubai, passengers can also leave their bags with DUBZ after retrieving them from the baggage carousels. With dnata taking a majority stake in DUBZ, the companies are now offering passengers a home check-in service where they will not only have their baggage collected at home or the hotel, but will also get their baggage checked-in on the spot, and collect their boarding passes from DUBZ. Passengers using this service can proceed straight to

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airport immigration, avoiding queues at the airline check-in counters with the assurance that their bags have already been checked in with the airline. dnata and DUBZ are starting the new home check-in service for passengers flying with UAE carrier flydubai and KSA carriers Saudia and flynas. They have the capability to extend this to any carrier and are currently in discussions with other airlines to make it available to their passengers soon. In addition, passengers on any airline arriving at Terminals 1 and 2 at Dubai International Airport and Al-Maktoum International Airport can appoint DUBZ to collect their baggage at the carousels, clear customs on their behalf and deliver the bags straight to their home or hotel.

DUBZ’s robust technology platform has been integrated with airport data to help customers select the most suitable pick-up times for their baggage. DUBZ also partnered with World Security to implement GPS tracking in all its vehicles, live CCTV screening at its facilities and smartphones for its drivers to manage paperless transactions, all the more to provide passengers with a seamless and hassle-free experience. “At dnata, we’re always looking for ways to enhance the customer’s experience at every touch point of their journey. With DUBZ’s innovative idea to create convenience for travellers, we’re now able to extend our service beyond the airport to let them check in for their flights from home. It saves them time and provides peace of mind. With success in Dubai, we hope to roll this out as a dnata product around the world,”said Steve Allen, Divisional Senior Vice President - UAE Airport Operations, dnata. The new luggage check-in services costs AED 110 each for the first and second bags or AED299 for the first three bags, and AED30 for every additional bag after that. For the baggage belt pick up service, it is AED 99 for the first bag and AED 40 for every additional bag.


Deutsche Post DHL Group recently announced its collaboration with Magento, the worldwide leader in cloud digital commerce innovation, as Premier Partner for Shipping. The partnership enables DHL and Magento to offer a broad range of shipping services to e-commerce merchants, small and medium enterprises (SMEs), start-ups and online entrepreneurs in the Middle East and North Africa (MENA) region. A study by Gartner reports that only 15 per cent of businesses in the region have an online presence and 90 per cent of online shopping involves product imports from outside the region. The study findings illustrate the immense growth potential for e-commerce merchants and online retailers in the region. The study further identifies reliable delivery system as one of the key areas e-commerce players should focus on to drive business growth in MENA. With the shift in trend towards consumer markets and growing use of e-commerce channels by SMEs in the MENA region, we see a tremendous potential in our partnership with Magento. We look forward to providing online merchants on Magento platform with reliable and flexible shipping options to help them deliver exceptional customer experiences,”said Nour Suliman, CEO, DHL Express Middle East and North Africa. “Magento connects merchants and shoppers. DHL connects shoppers with their goods,”said John Pearson, CEO Europe and Global Head of Commercial, DHL Express.“Our collaboration will provide Magento merchants with industry-leading

DHL and Magento partner to help online merchants in the MENA region go global international shipping and value-added shipping features from DHL that easily and flexibly connect shoppers with their goods.” Accepting the Magento partnership emphasizes again Deutsche Post DHL Group’s intention to be the leading global provider in e-commerce logistics. The Group’s divisions together comprise the most international company in the world, present in 220 countries and territories, allowing online merchants to leverage the Group’s unsurpassed global reach to execute their e-commerce strategy. Online retailers connected with the Magento platform will be able to select from a range of DHL shipping services, with the partnership expected to expand over time

to include an increasing portfolio of parcel, express, freight and other logistics services provided by the different DHL divisions. As a Premier Partner, DHL will connect with merchants through strategic placement on Magento properties and the core product merchant administration panel. In addition, DHL will have the opportunity to educate merchants on shipping integration best practices and how to increase cross-border shipping via the Magento Community online, webinars, thought leadership pieces, events including Imagine and MagentoLive, and in one-to-one meetings. DHL will also have early access to Magento product roadmaps so as to improve integrations and the merchant experience.

Trukkin to receive pre-series funding led by Saudi Arabia’s BATIC Trukkin announced that it will be receiving an undisclosed amount of funding led by Saudi Arabia’s Batic Investment and Logistics Co for a pre-series round. Trukkin was launched in 2017, and in a short period of time, has matched industry expectations with significant commercial transport capabilities, shipping over 5,000 heavy cargo truck movement across GCC. Trukkin is committed to making pivotal investments in technology and operations to make the Middle East logistics

and transport space more efficient and transparent, and to optimize commercial transport in the region. The company’s goals have received positive backing, support and investments from key captains of the industry, and its team, led by CEO Janardan Dalmia, is working closely with all backers and mentors to make Trukkin the de facto enabler of the industry. BATIC is the only large publicly listed logistics and private security company in Saudi Arabia and has implemented a consolidation

strategy focused on building a unique Saudi logistics national champion. The roadmap to build this national champion is focused on identifying accretive and unique acquisition targets and investments to achieve the required level of excellence that global clients expect. Batic is taking a comprehensive view on technology from both a traditional logistics model to the new asset light technology platforms that are destined to upend the current logistics’s paradigms.

The Middle East region carries huge potential in technologistics, but is still tied up with traditional operating processes. The market is fragmented, and is hampered by several inefficiencies. Trukkin has thus been founded to improve the entire operational framework of commercial logistics used by shippers, fleet owners and truck drivers and all stakeholders, who stand to benefit from increased efficiencies. Trukkin’s goal is to up the level of service and create industry benchmarks.

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COUNTRY REPORT - SHARJAH, UAE

Sharjah expands infrastructure and invests heavily in port development

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As the only UAE emirate to have ports on both the Gulf and the Indian Ocean, Sharjah is uniquely placed to take advantage of the region’s geographical position at the centre of international logistics lines. Oxford Business Group has compiled a recent report on the emirate and in this article speaks about investments in ports and road infrastructure


COUNTRY REPORT - SHARJAH, UAE

S

harjah has long been a key aviation link for traffic between Europe, MENA and Asia, with the first airport in Sharjah opening in 1932. At the same time, Sharjah is also the land crossroads between the southern, northern, eastern and western emirates, with a string of key highways passing through its territory. These comparative advantages are now being leveraged further as the emirate seeks to carve out a unique profile in a region well served by giant airports, ports and roadways. Moving forward, the provision of both quality services and high transit speeds are likely to be key elements in this; with Sharjah’s transport centres able to offer rapid throughput, good interconnectivity and a growing local market in the years to come.

Port of pearl Sharjah builds upon a long-standing maritime tradition, with archaeologists unearthing finds including 6,000-year-old pottery from Mesopotamia and 4,000-yearold beads from the Indus valley on a coastline well-known over the centuries for its merchants, sailors and fisheries. Sharjah Creek established itself early on as an important international harbour, with Al Khan – which is at the mouth of the bay that separates Sharjah from Dubai – a centre for boat building as well as pearl diving. In the modern era, three deepwater ports emerged as central players in Sharjah’s maritime industry, namely Port Khalid, Hamriyah Port and Khorfakkan Port, with the latter located on the eastern coast of the emirate and outside the Straits of

Hormuz. All three ports are managed by the Department of Seaports and Customs and the Sharjah Seaports Authority (SSA). Each of the ports specialises in a certain segment of the maritime transport and shipping industry: Khorfakkan Port is a major container terminal for trans-shipment; Hamriyah Port handles general cargo, industrial goods and hydrocarbons and petrochemicals in tandem with the Hamriyah Free Zone (HFZ); while Port Khalid, in Sharjah City, transports general goods and passengers, as well as handling some container traffic.

Strategic position The location of Khorfakkan Port on the Indian Ocean makes it ideal for shipping companies transporting goods to other

Sunset, Sharjah, United Arab Emirates

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COUNTRY REPORT - SHARJAH, UAE

in recent years and to a third Gulftainer-run destinations in the UAE and the broader facility, the Sharjah Inland Container Depot region. This is because it is one of the few (SICD), growing in importance as a storage dedicated container terminals in the UAE and distribution point away from the city that is located outside of the Straits of centre. Hormuz, along with the Port of Fujairah’s Located on the edge of Sharjah City near container terminal, which is also located on the border with Dubai, the SICD has been in the eastern coast. operation since 2004. The site offers a range The Khorfakkan Container Terminal (KCT) of offices and warehouses, with an annual has experienced significant growth in recent capacity of 300,000 TEUs and an entirely years. The KCT is operated by Gulftainer, scalable reefer capacity. Built on an area of which also operates facilities in Brazil, Iraq, 180,000 sq metres, it is also linked by road Lebanon, Saudi Arabia and the US. With to the KCT, with all the containers unloaded six berths and a 2000-metre quay served by there with destinations in Sharjah or the 20 gantry cranes, the KCT has five million Northern Emirates going to the SICD for 20-foot equivalent units (TEUs) of annual onward distribution. The inland port also capacity over a 70 ha area. provides the headquarters for Momentum Gulftainer also manages the Sharjah Logistics, Gulftainer’s third-party logistics Container Terminal (SCT) located at Port provider. Khalid. The SCT has four berths and a “KCT and the SICD are the way into 740-metre quay, served by five cranes and an the other emirates,”Iain Rawlinson, Group annual capacity of 750,000 TEUs. Commercial Director of Gulftainer Group, Significantly, a number of new told OBG.“We can provide a land bridge of developments have been taking place at four containers on a truck, which increases Port Khalid. For instance, a 436-metre quay speed while also reducing the carbon was completed in March 2018, adding footprint and the overall cost.”Hamriyah to the number of berths at the port and Port, meanwhile, has a close connection expanding its cargo handling capacities. with the oil and gas trade, along with the A tender was awarded in January 2018 for petrochemicals industry based in the HFZ. the reconstruction of the North Wharf, The port is also home to a shipbuilding which will build a modern quay of some and repair industry, with Damen Shipyards 1,030 metres. This project is scheduled to be Sharjah (DSS) operating there since 2014. completed by September 2019. In addition, DSS is run by Albwardy Marine Engineering, there is a new tender process under way a company which is 49 per cent for the construction of a owned by the Dutch shipping, dhow harbour to cater to defence and engineering traditional trade flows, and Three deepwater conglomerate Damen. The site is expected to be awarded ports are central specialises in the construction in mid-May 2018. This will of tugs and other vessels of up involve the construction players in to 120 metres in length, while of a breakwater and a Sharjah’s maritime also undertaking a variety of one-km quay outside the repairs and refits in conjunction current breakwater of Port industry, namely with other facilities located in Khalid. Port Khalid, Dubai and Fujairah. Port Khalid is, however, Hamriyah Port has four somewhat restricted in Hamriyah Port and general cargo berths with terms of space, because it Khorfakkan Port, a total quay length of 1,137 is located in the centre of metres. These berths serve the Sharjah City, which limits with the latter needs of project cargo shippers, its ability to expand. At the steel traders and other located on the same time, certain roads industries that are situated in are closed to heavy goods eastern coast of and around Hamriyah and traffic at certain times, neighbouring emirates. Several leading to tailbacks. These the emirate and oil traders who are based factors have resulted in a outside the Straits within the HFZ also have greater emphasis being pipeline connections from the placed on Khorfakkan Port of Hormuz 18 JULY/AUGUST 2018

general cargo berths to their own storage facilities in the free zone. Within the main harbour are three dedicated oil terminals. Sharjah Oil Refinery, which is located within the HFZ, is set to increase its power capacity with plans under way to upgrade and expand Hamriyah power station and water desalination plant, with work set to be completed in three stages staggered over the 2019-21 period. The project plans to convert the power plant from an open-cycle to a combined-cycle facility that utilises both gas and steam turbines, which is expected to increase efficiency by 50 per cent. The future capacity of the facility is set to be 2500 MW of electricity and 530m litres of water per day, heralding future growth for both the free zone and the port.

Sustained growth Sharjah’s ports have seen steady growth in recent years in terms of throughput. According to figures from the SSA, 2017 saw 1.15m tonnes of general cargo go through its facilities, up from 871,175 tonnes in 2016. Dry cargo also increased slightly, from 618,048 tonnes to 618,137 tonnes over the same period, while oil cargo rose from 8.54m tonnes to 9.57m tonnes. However, there was a slight decrease in the number of vehicles, from 28,094 in 2016 to 27,754 in 2017, and a larger drop in the number of containers, from 3.42m TEUs to 2.32m TEUs, over the same period. This downturn was generally reflective of overall global patterns in container traffic, as Khorfakkan Port is very much a global trans-shipment centre. This shift can, therefore, be explained by the slowdown in international trade in 2017. This slowing of global trade was also reflected in marine passenger transport, with the total number of passengers embarking and disembarking at the three ports falling from 31,087 in 2016 to 27,206 in 2017. This was the first year in which passenger traffic had fallen below 30,000 since 2012. Nevertheless, these figures are likely to rebound, due not only to the uptick in world trade in 2018 but also to the improved facilities for passengers arriving and departing from Sharjah. In February 2018 the developers of Sharjah Waterfront City – Sharjah Oasis Real Estate Development – announced its plans to commence ferry services between the project and Dubai Marina. This would cut transit times


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COUNTRY REPORT - SHARJAH, UAE

significantly as the services would bypass traffic congestion on the main roads between Sharjah and Dubai.

Boosting logistics Sharjah’s logistics sector is also looking at future growth. In March 2017 the HFZ Authority announced that it was developing

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a food park, with this being the first such dedicated facility in the region. Set to be constructed on a 11m-sq-foot site, the park will include offices and warehouses for food and beverage companies. Those investing in the site will be able to benefit from a range of free zone incentives, such as 100 per cent profit repatriation

and foreign ownership. Investors will also likely benefit from warehouse facilities for chilled and frozen products, with this giving Sharjah’s logistics sector a considerable boost by improving the local chilled goods supply chain. Such improvements are widely welcomed by the emirate’s haulage and distribution


Khorfakkan Container Terminal (KCT) has experienced significant growth in recent years. The KCT is operated by Gulftainer, which also operates facilities in Brazil, Iraq, Lebanon, Saudi Arabia and the US goods that are cleared on entering one port within the GCC are cleared for the whole GCC area. The emirate also benefits from an increasingly integrated security apparatus with the rest of the UAE, with Emirati information databases in the process of being linked together. The introduction of value-added tax by the federal authorities on January 1, 2018 has also required tighter supervision of goods, to prevent increased smuggling.

Improved infrastructure

View of the port Khalid in Sharjah, UAE

companies, which already benefit from an advanced network within the UAE overall. Customs clearances and other administrative hurdles have also been greatly simplified in recent times, thanks to the introduction of more electronic systems, enabling advanced clearing of goods. Sharjah Customs now operates around 10 physical centres for the

clearing of imported and exported goods, a feature of the emirate that has garnered praise from more traditional transporters. “Sharjah is a very human place,”Rawlinson told OBG.“The e-systems are there, but they keep this human side for those who want it.” Furthermore, Sharjah benefits from the UAE’s membership of the GCC, since

Road haulage companies that are based in Sharjah are able to benefit from the major network of highways that connect the emirate with other parts of the UAE, as well as Oman and other GCC countries. This road network is subject to constant infrastructural improvements. In December 2017 Sheikh Sultan bin Muhammad Al Qasimi, ruler of Sharjah, approved a Dh22.1bn (US$6bn) budget for the emirate – up from 6 per cent on the previous year – with the increased spending earmarked for the expansion of infrastructural investment. A key body in the implementation of this budgetary directive is the Sharjah Roads and Transport Authority (SRTA). This authority has wide responsibilities, ranging from roadworks to taxis, with public transport also coming under its remit. As Sharjah has grown in recent years, the SRTA has taken on an increasingly central role in the development of the emirate. According figures from the SRTA, 2017 saw some 59.2m people use public transport – including taxis

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COUNTRY REPORT - SHARJAH, UAE

– in the emirate. This represents an increase of 33 per cent on 2016, with 45m of these users recorded by Sharjah’s franchise taxi companies. This figure was itself up 12 per cent on 2016, while the emirate’s intercity buses, with 7m users, saw usage increase by 11 per cent. Meanwhile, the intracity bus services, with 6m users, grew by 10 per cent over the same period.

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The emirate’s taxi franchises, which include Sharjah Taxis, City Taxis, Union Taxi and Emirates Taxi, have therefore seen an increase in business and have laid the groundwork for further expansion with the introduction of innovative new services. These include an automatic callback service, which was launched in January 2018. The new service enables those looking for a cab to call in and

have the nearest vehicle sent to them within seven minutes.

Environmental focus Meanwhile, the authorities are placing an increased emphasis on the development of environmentally friendly modes of public transport. This forms part of a broader set of policies aimed at establishing Sharjah as


COUNTRY REPORT - SHARJAH, UAE

Industrial port in Khor Fakkan, Sharjah, UAE

a centre of environmentalism in the MENA region. The SRTA has, therefore, been building up its bus fleet, with 37 new vehicles added in 2017, bringing the total number to 175. Of these, 111 are owned directly by the SRTA and the rest are operated by partners. The construction of 28 solar-powered bus shelters has also been announced, in a project set for completion by October 2018.

The main terminal for the initiative will be the Al Jubail bus station, with some 16 routes covered from there. Furthermore, in January 2018 the SRTA announced that 10 smart buses were to be added to the fleet. These 48-seat Dh1m (US$272,200) vehicles feature emergency alarm and braking systems, combined with adaptive cruise control. These features

combine increased energy efficiency with increased safety and are set to improve connectivity with other emirates. Environmental concerns are also behind the recent announcement by Sharjah’s waste collection and environmental management company, Bee’ah, that it is set to purchase the first and largest fleet of Tesla electric trucks in the Middle East. Some 50 of these are due

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Sharjah’s logistics sector is also looking at future growth. In March 2017 the HFZ Authority announced that it was developing a food park, the first such dedicated facility in the region and is set to be constructed on a 11m-sq-foot site to start arriving the emirate in 2020, reducing the carbon footprint of the company’s 1000-vehicle fleet. Bee’ah is also partnering with several US companies to transform diesel-powered vehicles into electric ones. Meanwhile, discussions are currently under way on the best ways to improve one of the main transport routes in the UAE, which connects Sharjah to neighbouring Dubai. This route enables commuters to work in Dubai while also taking advantage of Sharjah’s relatively lower rents and living costs, facilitating approximately 900,000 trips each day, according to a recent report from the engineering consultancy firm Aurecon, which works closely with the SRTA. These routes have a combined capacity of some 33,200 vehicles per hour, yet around 40,000 vehicles attempt to use the roads at peak times. The resulting congestion leads to delays that are responsible for a loss of approximately US$1.18bn in fuel and lost working hours, according to the report. One proposed solution would be an extension of the Dubai Metro Green Line to Sharjah, which Aurecon has concluded would reduce road traffic by around 30 per cent and would cost an estimated US$881m. Nevertheless, there are some concerns regarding such a solution. One is that it would place too much extra load on the existing Dubai metro, as the number of additional commuters from Sharjah is expected to be significant – perhaps as many as 22,000 passengers per hour in each direction.

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Rail links In March 2018, following a two-year hiatus, Abdullah Belhaif Al Nuaimi, the minister of infrastructure development, announced that tenders for the design and construction of the second phase of the 1200-km US$25bn Etihad Rail scheme would open within a few months. This would mark the largest of the three-phase roll out of the ambitious infrastructure project, which envisages the construction of a railway network through Sharjah to

other emirates in the UAE and potentially the broader GCC. The second phase of the project would see the construction of 650 km of rail links between Khalifa Port in Abu Dhabi with Jebel Ali Port in Dubai, and with the Saudi and Omani borders. Meanwhile, the final proposed stage would connect Khorfakkan Port with Fujairah, running across Sharjah, before moving south to link up with the link between Dubai and Abu Dhabi, with a 279 km extension.


COUNTRY REPORT - SHARJAH, UAE

Furthermore, a 41-km extension of Sheikh Khalifa Road was opened to traffic in February 2018; with further extensions earmarked for completion in mid-2018. A major extension of Academic City Road, which runs from Sharjah to Jebel Ali, was opened in March 2018. The eight-lane road – which was renamed Sheikh Zayed Bin Hamdan Al Nahyan Street in February 2018 – passes through the site of Dubai Expo 2020, and is expected to help ease rising traffic flows prior to and during the international event. Another notable new road development is under way around Sharjah International Airport, which is undergoing expansion. Some US$408.8m has been earmarked for the project, with improvements to the associated road network taking a significant share of the cost. Work was nearing completion on a new bridge linking the airport to the E88 highway at the time of publication and it was expected to be completed by mid-2018. At the same time, infrastructure improvements are also helping to improve road safety across the emirate. In November 2017 the Sharjah Police General Directorate announced that the maximum speed limit on highways would be increased from 100 km per hour to 120 km per hour, due to improvements in road conditions. In order to ensure compliance and facilitate traffic flow the police have also installed a number of fixed speed detectors and mobile units.

Outlook

Indernational Airport, Sharjah, UAE

Building bridges In order to address the problem of the bottleneck between Sharjah and Dubai, the emirate has unveiled or completed new road and bridge projects since the end of 2016. In December 2017 the Federal Transport Authority (FTA) – which has responsibility for highways across the UAE – announced that one of the goals of its new master plan was to improve highways in Sharjah and Dubai. Among the main projects designed to ease congestion between the capitals of the two emirates is the

Mleiha motorway intersection, which is set to connect Dubai’s Emirates Road with Sharjah’s Mleiha Road. The Dh200m (US$54.4m) project comprises a nine-lane approach road leading to a seven-lane bridge and is expected to open in August 2018. Work is also under way on two new truck lanes and a series of truck lay-bys along the heavily used Emirates Road in order to ease congestion and do away with current restrictions on the use of major roads by heavy goods vehicles – a source of frustration for some haulage companies.

With the global uptick of the shipping industry and strong local fundamentals in place, Sharjah’s ports are set to experience continued positive development. The emirate’s transport and logistics sector is in the middle of a highly competitive region, with port capacity often outstripping demand in recent times. This makes the provision of services all the more important, with Sharjah well placed to offer an attractive package, given that it is home to ports on both sides of the Straits of Hormuz. Khorfakkan Port could act as the gateway to the northern emirates as well as Sharjah, with a reputation for speedy throughput already established. In the air, too, the emirate has a key advantage over nearby competitors, having a much quicker transit between arrival and departure. -www.oxfordbusinessgroup.com

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Innovating Innovating Innovating Business Business Business &&IT &ITIT


COVER

Tech times

Here are the most prominent six trends in technology that logistics providers and shippers will really depend on to gain advantages and benefits in their businesses. Adam Robinson of Cerasis authors this technology article on technology’s top picks

T

echnology today is serving as the foundation of the transformation to the digital logistics and supply chain landscape. Here we focus on how shippers and logistics providers will lean on six trends to make gains in the months to come. What is the difference between logistics technology trends and supply chain technology trends? The short answer is: not a lot! However, logistics focuses expressly on the movement and storage of products, while the supply chain goes into deeper detail, including manufacturing processes, procurement, and the flow of goods. Although similar, the following will focus more on the big-scale technologies and their associated key concerns that will affect logistics in the coming months.

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COVER

28 JUNE JULY/AUGUST 2018 2018


COVER

The logistics robots market will Think about the dominate in 2018 and beyond

typical costs associated with hiring and training drivers. Drivers credentials must be verified. They must undergo health and mental wellness exams. If a problem arises, the company must mitigate their losses

Robotics is set to change logistics more than any other area of the logistics technology trends in the coming year. As explained by i-SCOOP, Amazon’s acquisition of Kiva Systems robotics a few years ago, now known as Amazon Robotics, dramatically altered the robotic logistics landscape. Support for companies using Kiva robots diminished over the past years, and it is expected to end shortly. The decision by Amazon will result in increased development of robots for use in logistics and other functions in warehouses such as packing and picking. Further, we may see, as we are now in manufacturing, the rise of cobots, or collaborative robots, as coined by Rethink Robotics. The market is ready for the use of logistics robots to work in conjunction with the Industrial Internet of Things (IIoT), also known as industry 4.0. Cobots are involved in packaging, picking, shipping, delivery and visibility throughout logistics, but they are rapidly becoming key players in the artificial intelligence and data analytics movement. By the end of the year, up to 30 per cent of all new robotic deployments will use cobots that operate three times faster than existing robots deployed at the end of 2016. In other words, more robotic systems will be used for order fulfillment warehousing and delivery operations by up to 45 per cent of mainstream global e-commerce and omnichannel commerce companies.

More companies will explore inhouse last-mile delivery solutions The demand for faster last-mile delivery is causing some major problems for shippers trying to implement in-house last mile programs, says On Time Logistics. For many retailers, this will be difficult, requiring significant investment in two fleets, drivers, technology and additional resources to handle last-mile delivery. Think about the typical costs associated with hiring and training drivers. Drivers credentials must be verified. They must undergo health and mental wellness exams. If a problem arises, the company must mitigate their losses. Creating in-house last-mile strategies increases risk, so more companies will begin outsourcing last-mile delivery service in favor of meeting consumer demands.

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Autonomous trucks and drones are the 800-pound gorilla in logistics technology trends. They are the in-all solution to the concerns over the driver shortage, and they can save big bucks for logistics service providers

However, last-mile delivery is not exclusive to home delivery, and it can include delivery to store. Ergo, ship-to-store and pick up at a store are last mile delivery options, and shippers can leverage existing brickand-mortar stores to offer faster delivery to consumers. As a result, stores as a distribution center will become more popular throughout 2018.

Problems with autonomous delivery will become evident Autonomous trucks and drones are the 800-pound gorilla in logistics technology trends. They are the in-all solution to the concerns over the driver shortage, and they can save big bucks for logistics service providers. Unfortunately, self-driving trucks and cars are not yet widely available. Even when they can perform as their name implies, chances are good that regulatory agencies will act. This will result in added costs of using driverless vehicles, changes to insurance premiums and more. Another side of the equation is labor; people are clamoring over the possibility of robotics, including driverless vehicles and tries, taking the place of human jobs. Although it might sound like a doomsday scenario, it is not a robot apocalypse.

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Driverless technology has a long way to go before it can be deployed on a nationwide scale, and 2018 will see more logistics service providers realizing the potential drawbacks to investing too much in autonomous delivery options right now. This also includes drone delivery. Instead, they will focus more on existing technologies and explore autonomous delivery with caution.

Logistics safety and cybersecurity systems will be top priorities in logistics technology trends Safety and logistics will also come under the microscope in 2018. Recent hacks into nationwide companies have revealed potential cybersecurity threats throughout some of the most secure organizations on the globe, including Equifax. Furthermore,


COVER

companies will be doing overtime in 2018, so it is more likely that they will pass regulations sooner rather than later. This will require the use of more advanced analytics to track employee performance and adherence to safety standards.

Logistics service providers will increase mobile app adoption The rise of new technologies and the Internet of Things will encourage logistics service providers to increase adoption of mobile apps. There are apps for trucking miles driven, freight sent, freight waiting to be sent, inbound orders, marketing leads, customer service interactions and more. Logistics companies can leverage information and capabilities via an app to reduce demand and effectively manage it. Freight sharing apps are one of the major app categories that will see a significant boost throughout 2018.

TMS adoption rates will soar The use and adoption of transportation management systems (TMS) is expected to climb in 2018 and beyond, says Bridget McCrea of Logistics Management. ATMS has the value of being a “hub� for all logistics interactions and processes, including route planning and optimization, freight auditing and payment processing, carrier management and more. Furthermore, TMS applications have moved from terminalbased installs to cloud-based platforms, reducing delays in implementation, eliminating bottlenecks from downtime and improving cybersecurity simultaneously. As a result, more companies will adopt such solutions throughout the year to keep up with increased demand and to integrate into the increased used of the other aforementioned logistics technology trends.

Logistics will continue the technology overhaul in 2018 pushback against the new administration has led some states to adopt even tighter regulations governing safety standards in the workplace, even if on a local level. As a result, logistics providers will be focusing more on safety. Increased demand for faster turnaround will also have an inescapable result of increasing the risk of accidents in the transportation process.

Workers are going to be moving faster, and doing things faster tends to result in less-than-safe practice. Logistics providers that do not take the time to consider how safety will evolve throughout 2018 may be the recipient of unwelcome punitive damages and penalties on the part of injured parties or regulatory agencies. National regulatory agencies also understand that logistics

Logistics is poised to reap the benefits of technology in the coming year, and understanding these logistics technology trends’ implications will be key to success or failure. Consumers are only demanding more, and technology is the solution service providers have been looking for to move more product with fewer resources. www.cerasis.com

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EVENT - VOLVO INNOVATION DAYS 2018

Electromobility for a better

tomorrow Volvo Trucks recently organised their international event Innovation Days 2018 - in Gothenburg, Sweden. With almost 160 customers and more than 50 media flown in from all over the world, the Swedish vehicle giant not only engaged its guests in everything Volvo, but also conveyed many meaningful messages of the company’s impact on all areas of life throughout the event

Volvo FL Electric

Volvo FE Electric

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EVENT - VOLVO INNOVATION DAYS 2018

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rom 1927 till date, Volvo continues to simultaneously create history and a better future. One of the biggest commercial vehicles manufacturer in the world, if there was a word which Volvo could own, it would have to be safety. Not everyone is aware, that the three-point seat belt was created by Volvo and not patented, instead it was gifted to all the vehicles of the world. So

in the words of Carl Johan Almqvist, Traffic and Product Safety Director, Volvo,“Because of the presence of the seat belt, there is a little bit of Volvo in every vehicle.”With safety being at the root of all of its technological features, the two-day event highlighted the many areas in which the vehicle manufacturer makes its presence felt. One of the many initiatives undertaken by Volvo is with the city of Gothenburg. It is working together with universities and the

municipality of the city to study the many effects of truck and wider vehicle use to the environment, people and their quality of lives. Gothenburg is a fairly underpopulated city. It’s current population is a little more than 550,000 residents and the study suggests a population addition of another 150,000 residents by the year 2030. The effects of air pollution that is caused directly due to the use of cars and trucks in the city is 300 premature deaths per year due to particles, 14,000 disability adjusted life years in Sweden and that’s not to mention the impact of noise that happens due to traffic to people and their life quality. Volvo has come up with a solution to ensure a better tomorrow of the city of Gothenburg. The company’s noiseless, electric trucks are a treat to drive as well as to just be a passenger in. The trucks run as smooth as melted butter on the roads, with no problems in accelerating or stopping as well as zero carbon emissions as it is a completely electric truck. More than just providing the electronic truck, the company needs to ensure a better working solution to reduce the number of vehicles on the roads at peak times. So what if deliveries could be organised to be done after peak hours, during the night even, in order to ensure smoother drop offs as well as all around reduction in noise and lesser traffic? When this was tested in Gothenburg, it was deemed a successful solution as it cut down on the city’s air pollution, made the city quieter and improved traffic flow. And this model could potentially be replaced in other more populated cities worldwide, too. So what are the possibilities of a similar exercise being conducted for the Middle East region? Lars Martensson, Director, Environment and Innovation says,“We are working on some research topics such as combustion technology with partners in the Middle East region, however, we are not working on any environmental research topics with universities from the Middle East.” The study and environmental research and use of Volvo’s technology to create a better environment for its residents continues for the city of Gothenburg. And with its findings and measured results, we hope these studies can be replicated in all parts of the world very soon.

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FLEET MANAGEMENT

The definitive guide to

vehicle telematics

Smart driving helps educate companies with large fleets. FMS Tech’s white paper on the subject of IVMS (in-vehicle monitoring systems) and telematics takes us through the concepts and how technology can help improve driver performance

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elematics, In Vehicle Monitoring Systems, On Board Computers. Each of these terms have similar definitions and are most often associated with GPS location, but what do these adjectives actually mean, and can a fleet manager gain full visibility of a fleet with any of these? JULY/AUGUST 2018 35


FLEET MANAGEMENT

First, let’s look at the definitions of each of these commonly used terms: Telematics - Normally a term used in the region of North America and in some parts of Europe. This term is most often associated with software that reports on vehicle specifics drawn from a device installed and connected to vehicle sensors including: speed, braking, acceleration and seatbelt. In Vehicle Monitoring Systems (IVMS) - Associated most often with the location positioning of a vehicle, IVMS can be used to describe any technology that monitors a vehicle whether it is software, hardware, or both- and reports on a another producer. Some companies may use the terms Telematics, IVMS, and on board wide range of vehicle features and events. computers interchangeably - while other On Board Computers - Any computer groups see the definitions as entirely different (hardware) that is installed in a vehicle for solutions with different meanings completely. any reason. First these computers were What does this mean for the consumer? It used to report on vehicle positioning, but means we need to ask questions not only of has grown to include computers that are the supplier - but of ourselves to connected to vehicle sensors determine exactly what it is we to report on a wide range of Did you know are look to install in our fleet vehicle outputs as well as not in terms of IVMS, Telematics, giving a platform for other technology or On board computer - but in plugins to function such as can make reference to the goals you are cameras, screens, and even looking to achieve. For exampleprinters. your drivers if you are concerned most with If you are thinking that happier? It’s the hours of service your drivers these definitions all sound have, or the amount of fuel your similar, it’s because they true, based on fleet is using - you should be sure are. If you are also thinking to find a solution provider that that these definitions sound a study done gives you these data points in a vague and ambiguous, by FMS-Tech, format you like. Although this it’s because they are. The sounds simple- it can actually issue with defining these driver morale get quite complicated when technologies is that that increased by you start to discover the huge they are all relatively new range of varying technologies products - the people and 73 per cent and suppliers who offer different industries defining these across clients benefits and levels of services terms are the ones selling from provider to provider. and making the solutions that installed Wondering where to start? themselves. That means an an IVMS or The following three parts will IVMS product offered by look at 1. The problems you can one company could include telematics solve with an IVMS, telematics, a completely different device or on-board computer 2. The set of specifications from 36 JULY/AUGUST 2018

additional benefits you can gain from an IVMS, telematics, or on-board computer, and 3. Some current technologies to look for when deciding the solution that is right for you. In an essence - all of these terms; IVMS, telematics, and on-board computer are a tool to give visibility to your fleet and improve fleet management- so we can refer to all of these terms simply as a fleet management technology.


FLEET MANAGEMENT

The problems you can solve with an IVMS, telematics, or on-board computer. The most commonly known problems solved with fleet management technology is: Where are my vehicles? But in today’s market, technology offers much more than just a GPS location of a fleet manager’s vehicle. Other fleet problems that are being solved today with technology include the following major topics: Fun Fact: Did you know technology can make your drivers happier? It’s true, based on a study done by FMS-Tech, driver morale increased by 73 per cent across clients that installed an IVMS or telematics device. The reason for the change is in the “Driver Merit System” which gives feedback on a regular basis to drivers in an SMS format, and on a point based system. Once drivers have accumulated a certain amount of points, they can redeem them for prizes, or even cash!

Managers do not know if safety policies are being followed Unauthorized use of company vehicles Asset usage policies are not being followed Vehicles being used in restricted areas Drivers are not being rewarded for good behavior Theft of cargo and/or fuel Containers and Trailers are being used for illegal activity Unauthorized drivers in the driver seat Roads are unsafe and have high accident rates

not easily accessible or hard to interpret. Powerful technology is useless if you are unable to comprehend and use the data. Ensuring that your software provider can give easy to read reports on an automatic basis is the only way to ensure improvements in fleet performance is tracked and optimized. Customized reports developed free of charge is the most efficient way to keep your data organized, in line, and providing results- so asking for this from providers is another great way to optimize your fleet management technology.

All of these topics are addressed and solved with a comprehensive fleet management technology, but what is often overlooked is how the data is delivered, displayed, and reported which brings us to our last commonly seen problem: Data is

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FLEET MANAGEMENT

The additional benefits you can gain from an IVMS, telematics, or on-board computer. If you are a fleet manager investing in a new technology, you are most likely satisfied if that technology solves your main or largest fleet problem. However, managers should be aware that there are some top of the line benefits that keep paying off long after the fees are paid. Here are some of the best benefits to look for, and ask about: Did we mention safety? Even though safety policy was mentioned in part 1, because of its importance, it’s worth mentioning again. Vehicles installed with a fleet management technology have a 79 per cent less chance of being in an accident. Not only does that reduce the accident related costs a fleet manager occurs, it also supports corporate-wide goals, make drivers feel more safe, and overall improves the community. Transparency of fuel efficiency due to driving performance. There are many driving habits that poorly affect the fuel efficiency of a vehicle including long idling times, harsh acceleration and breaking, and over speeding. These behaviors can lower your gas mileage by 15 per cent to 30 per cent at highway speeds, and 10 per cent to 40 per cent in high traffic areas. A good fleet management technology will provide the data in an easy- to read format to help fleet managers identify drivers and behaviors that are impeding on their fleet efficacy goals. A realistic goal is a system that will help reduce fuel consumption by 15 to 25 per cent. Decreased vehicle maintenance. Similar to the concept of increased fuel efficiencythe bad habits that drivers tend to develop can increase the need for vehicle to be maintained. Fleet managers can expect a decrease of 24 per cent of their maintenance costs if a fleet management technology is installed in their vehicle. These technologies also offer an 84 per cent decrease in over speeding violations which is one of the common driving mistakes that can cause vehicles the most damage. Hardware and Software Integration. Most Fleet management technology companies develop either the hardware or software and outsource the other- but rarely do they develop both hardware and software in house. The advantage to finding a provider

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that develops both under the same roof is seamless integration and easy access to updates, support, and customization. These providers have hardware and software engineers working together on a daily basis to develop reliable solutions and decrease the fleet manager’s need to manual check on individual vehicles or drivers. Approvals/ Certifications. Some fleet management technology companies have worked hard to achieve local certifications to ensure high quality standard for their clients. These approvals include government and industry specific such as Oil and Gas. For example- a technology company that has been approved to transport dangerous substances such as oil can be highly relied upon for all other industries as well. This will give fleet managers a peace of mind in regards to the quality and reliability of the products. Tachograph. Understanding what happened in an accident is important for

many reasons including insurance claims and improving systems to ensure such accidents do not occur again in the future. Tachograph is a technical, and very accurate way to re-create an accident and see the root cause clearly.


COUNTRY REPORT - DUBAI, UAE

Some current technologies to look for when deciding the solution that is right for you

What is Tachograph? Tachograph - a device fitted to a vehicle that digitally records its speed and distance, together with the driver’s activity selected from a choice of modes. Tachograph outputs are read to determine the cause and effects of a vehicle accident.

Fleet Management Technology has come a long way from simply knowing where your vehicles are. Today Fleet Management Technology can provide information about the driver, reward drivers for good performances, prevent against theft, control the operating areas of vehicles, keep goods secure, and most importantly keep roads safe. Some of the technologies that can provide such benefits include: Video Surveillance Electric Seal for Cargo containers or trailers Face recognition RFID enabled driving GEO-Fencing Ignition relay SIM card and Iridium satellite option for Port dataoftransmittal Salalah, Oman

GPS has become a common term globally and is normally the first go-to feature fleet managers have in mind when looking for technology to install in the fleet vehicles, but in today’s market GPS is the most fundamental and basic feature installed in today’s vehicles. The next level of technology, often referred to as telematics is the software solution to providing information about the vehicle and driving behavior such as seatbelt status, harsh breaking, harsh acceleration, and fuel consumption, but with today’s technology fleet managers have access to a much wider range of data points in which to draw from their vehicles therefore providing more transparency.

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PORTS

Agility and Suez Canal Economic Zone develop

logistics hub Agility works together with the Suez Canal Economic Zone to create a logistics centre in East Port Said, one of the most important sites on the Mediterranean Sea 40 JULY/AUGUST 2018


PORTS

A

Admiral Mohab Mamish and Agility CEO Tarek Sultan sign a protocol of cooperation

dmiral Mohab Mamish, Chairman of the Suez Canal Authority and Chairman of the Suez Canal Economic Zone (SCZONE), along with Tarek Sultan, Vice Chairman and CEO of Agility, recently signed a Protocol of Cooperation, establishing a logistics center in East Port Said, one of the most important strategic sites on the Mediterranean Sea. Under this protocol, Agility will develop a hub with international standard logistics infrastructure to enhance the importing and warehousing of raw materials, as well as the export and distribution of intermediate and final goods through the Suez Canal Ports. The logistics hub is part of the current expansion of East Port Said. The company will also provide world-class solutions for Egyptian customs, including the modernization and automation of the customs processes. This will improve the speed at which commodities are moved and strengthen the supply chain in a fast and secure manner. These improvements, in turn, will help decrease supply chain costs for the industrial operations across the various areas of the economic zone. “The establishment of the East Port Said project is in line with the Egypt 2030 Vision. It also achieves Egypt’s development goals in creating an integrated sustainable economic growth through the creation of new job opportunities and enhancing Suez Canal Zone status as a commercial and industrial hub,”Admiral Mohab Mamish said. Admiral Mamish added that the protocol of cooperation with Agility is one of the significant steps in the Economic Zone’s development plan, and particularly the development of East Port Said, noting that Agility is one of the world’s largest logistics companies operating in the Arab region. The Chairman of the Suez Canal Economic Zone announced that the protocol aims to study the investment in the development and

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PORTS

marketing of both the logistics and industrial areas. It also includes the development of a ‘green’ logistics hub for value-added services, in addition to applying advanced customs technology solutions that facilitate trade. Tarek Sultan, Vice Chairman and CEO of Agility said,“Egypt’s prominent location allows access to strong regional markets and trade routes, making it an ideal site for a regional distribution hub. Given the global demand for access and presence in the continent, Agility has continuously invested in Africa. Establishing an integrated industrial and logistics hub in partnership with SCZone, as well as providing modernized, automated customers services, matches Agility’s Africa strategy and further highlights Egypt’s role as a key regional player.” “Being present in the Suez Canal Economic Zone and, in particular, working in the East Port Said area will give companies access to world-class infrastructure as well as fast, easy and efficient logistics and customs services in terms of time and cost,”added Sultan. Admiral Abd El Kader Darwish,Vice Chairman of the Suez Canal Economic Zone for the Northern Sector, said that the establishment of a logistics center in East Port Said is set to provide logistical and technological solutions for investors in the region. It will also provide a secure electronic customs system to facilitate the movement of goods in a safe manner that will in turn contribute to more job opportunities in East Port Said. Darwish added that the protocol also includes studying the possibility of establishing a company between the Economic Authority and Agility. He pointed out the two-phase implementation plan between the two parties includes a first phase to prepare the feasibility studies for the development of a logistics center and the provision of customs technology services for period of eight months. The second phase includes the preparation of the detailed master plan for the logistics center and its stages, as well as a detailed technical and financial studies to provide technology services for a period of six months. Then the third phase will include the establishment of the joint company in a period of six months. In Egypt, Agility manages 43,000 sq metre of warehouse space and 30,000 sq metre of open yard storage. In 6th October City, the company manages more than 60,000 pallet positions with material handling lifts capable

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Homoola team

of transferring goods to 67 loading docks. Agility offers superior solutions across Egypt to move time-sensitive cargo and online tracking of goods transported overland or through major air and sea ports through the company’s port of call license which gives it a status equivalent to shipping agencies.

Homoola launches road freight load-matching in Saudi Arabia Homoola formally launched its digital loadmatching service in Saudi Arabia, where it will bring new efficiency to road freight by using technology to pair shippers and trucking companies. Agility is a key investor in Homoola. Homoola’s load-matching technology addresses the pain points felt by both shippers and carriers. It gives shippers access to capacity at times of peak demand and allows them to optimize the efficiency of their shipments at other times. Homoola prevents carriers from driving empty miles or sitting idle waiting for cargo. Ziyad Al Homaid, Homoola co-founder and CEO said,“Homoola’s goal is to build a platform matching multiple carriers and drivers, based on cost, quality of service and terms of payment.” Homoola has been operating in Saudi Arabia since January. Its platform gives trucking companies, including smaller carriers, access to a larger pool of customers and allows them to make more efficient use of their fleets. Shippers can select from among multiple trucking options that meet their standards for quality and consistency. The development of Homoola is consistent

with Saudi Arabia’s Vision 2030 economic objectives. Among the goals outlined as part of Vision 2030, the Saudi government seeks to diversify the economy, grow the private sector, create new jobs, improve its competitiveness, become a logistics leader, increase non-oil exports, and draw foreign investment. “Homoola allows logistics and trade to be conducted more efficiently and effectively – in keeping with the Kingdom’s 2030 vision,” Al Homaid said. Asim Al Rajhi, Homoola co-founder and COO, said,“The surge of transactions delivered to customers over the past few months reflects the market’s demand for Homoola. Our customers are telling us that they like the realtime and accurate updates on pricing, and also the ability to track their goods at all times.” Agility Ventures, the corporate venture arm of global logistics giant Agility, is a key investor in Homoola and has worked closely with the Homoola team on the platform’s development and operational launch. Agility Ventures partners with promising startups that are championing technologies that can help build faster, more secure and more sustainable supply chains. Agility Ventures has invested in digital start-ups that bring new efficiency to e-commerce fulfillment and last-mile delivery for businesses and consumers. Henadi Al-Saleh, Chairperson of Agility and Head of Agility Ventures, said,“Customer expectations and demands are constantly changing, as are their operating models. Homoola will offer a real-time view of fleets, as well as insights into market supply and demand in the region. Agility will continue to innovate in partnership with startups like Homoola.”


The new workforce The All-new Ford Trucks Construction Series is force to behold. Ready to carry the load, no matter how challenging the terrain; from the deepest mines to the toughest construction sites. www.fordtrucks.com.tr

Ford Trucks Sharing the load

Bahrain Iraq Jordan Oman Qatar Saudi Arabia United Arab Emirates United Arab Emirates

– Almoayyed Motors – Manama / sheehanford@almoayyed.com.bh – Al Kasid Commercial Agencies Ltd - Erbil, Baghdad / ahmed.ali@al-kasid.ae – The Commercial & Industrial Company - Amman / w.albajjali@cic.com.jo – Mohsin Haider Darwish LLC - Muscat / bhaskar@mhd.co.om – Almana Motors Company W.L.L – Doha / oghobrial.aa@almanagroup.com – Al Jazirah Vehicles Agencies Co Ltd – Riyadh / mbuhsuli@aljazirahford.com – Al Tayer Motors – Dubai / selzokm@altayer.com – Premier Motors – Abu Dhabi / selzokm@altayer.com

TRUCKS


AVIATION TECHNOLOGY

44 JULY/AUGUST 2018


AVIATION TECHNOLOGY

T aviation Connected aircraft to save

industry

Aviation technology enabled by satellite communications has the potential to save massive costs for the airline industry. Savings will also be made in the tonnes of carbon emissions created by the aviation sector. Here is an excerpt of a research report created jointly by the London School of Economics and Political Science (LSE) in association with Inmarsat. The report is authored by Dr Alexander Grous (B. Ec, MBA, M.Com, MA, PhD.), Department of Media and Communications, LSE)

he connected aircraft, enabled by satellite communications, has the potential to save airlines US$15 billion annually in operational efficiencies and 21.3 million tonnes of CO2 emissions by 2035, according to a first-of-its-kind research from the London School of Economics and Political Science (LSE) in association with Inmarsat, provider of global, mobile satellite communications. Analysing current IATA data and primary research including industry interviews with airlines, regulatory agencies, developers and suppliers of aircraft equipment and software solutions, Sky High Economics: Evaluating the Economic Benefits of Connected Airline Operations examines a wide range of efficiencies enabled by the connected aircraft, and their associated benefits. These efficiencies include fuel savings, a reduction in delays, innovations in maintenance processes, air traffic management enhancements, safety improvements and others. Based on current connected aircraft numbers, the research finds that together these efficiencies can generate up to a one per cent reduction in the US$764 billion spent by airlines each year

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AVIATION TECHNOLOGY

in operating costs worldwide. This equates to 20 per cent of the forecast global aviation industry net profit in 2018 (US$38.4 billion). As the adoption of connected aircraft is set to rise exponentially, this cost saving is expected to double, saving airlines up to US$15 billion globally by 2035.

Fuel savings and reducing environmental impact Today, the airline industry is experiencing a period of exceptional growth, but the forecast doubling of air traffic by 2035 will require a more efficient use of assets to reduce fuel and CO2 emissions, and increase airspace capacity while assuring safety. Optimising flight routes in real time, through IP-enabled communications that provide better weather information to the cockpit, yields an estimated one per cent fuel reduction per flight. This equates to 3.39 billion litres of fuel, 8.3 million tonnes of CO2 and US$1.3 billion in fuel costs annually. Adding savings accruing in other areas, enabled by enhanced communication to and from the cockpit, fuel Frederik van Essen, Senior Vice efficiencies of 2.5 per cent could President, Market and Business be achieved: an annual reduction Development, Inmarsat Aviation of 8.5 billion litres and 21.3 million less tonnes of CO2. To put this into context, the current IATA global target for reducing CO2 emissions is an improvement in fuel efficiency of 1.5 per cent per year.

Predictive maintenance reduces turnaround times Reducing turnaround times and preventing aircraft on ground (AOG) through predictive maintenance is a key priority for airlines; unplanned maintenance is responsible for approximately half of flight delays. Globally, airlines spent US$62.1 billion in maintenance, repair and operations costs in 2016, a figure set to reach US$90 billion by 2024. The connected aircraft utilises real time data to create a live electronic tech log, in which flight performance data is digitally integrated with maintenance suppliers, allowing airlines and advanced algorithms to identify any maintenance required before the aircraft arrives at its destination. This research

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forecasts that if such technology halved maintenance costs, it could deliver annual cost savings of US$5.6 billion.

Cutting flight delays Global flight delays are estimated to cost the industry US$123 billion each year, with weather responsible for nearly 70 per cent of all delays. Through improved navigation capabilities, the connected aircraft’s ability to avoid adverse weather and hazardous conditions could deliver annual cost savings of US$1.3 billion. In addition, crew scheduling is currently responsible for three per cent of delays; a 66 per cent reduction in such delays through enhanced connectivity could generate an additional US$2.4 billion

in annual savings. Where connectivity is fully utilised in disruption management to reduce the impact of delays, cancellations and diversions and enhance predictive maintenance, annual savings have potential to reach US$11 billion.

Revolutionising air traffic management As a result of enhanced satellite connectivity, significant change is underway in air traffic control (ATC) services. IP-enabled, secure real-time data exchange between aircraft and ATC is improving surveillance capabilities and reducing separation minima, allowing airspace to accommodate increasing passenger numbers and an increasing variety


AVIATION TECHNOLOGY

of aircraft. The benefits of migrating current radar-based systems to satellite-based navigation, automating aircraft position reporting and providing digital data link communication between pilots and air traffic controllers could revolutionise air traffic management and save an estimated $3 billion annually. Dr Alexander Grous (B. Ec, MBA, M.Com, MA, PhD.), Department of Media and Communications, LSE and author of Sky High Economics says,“The forecast doubling of aircraft in the skies by 2035 will create both challenges and opportunities for the global aviation industry. IP-enabled aircraft are an essential step in facilitating growing demand for air travel, while meeting vital

safety requirements. The study’s findings highlight not only the powerful commercial efficiencies for airline operations, but crucially, the resulting advantages for safety and environmental impact.” Frederik van Essen, Senior Vice President, Market and Business Development, Inmarsat Aviation, says,“This report demonstrates that the connected aircraft is a shrewd commercial decision; unrivalled access to real-time data is reducing airlines’ bottom-line operating costs while reducing emissions and improving safety. Not only that, enhanced connectivity is becoming an operational necessity as our skies become busier. With finite airspace available to accommodate increasing passenger numbers, airlines need

to act now and consider the technology and infrastructure they need to future-proof their operations.” Inmarsat is playing a key part in the digitisation of the aviation industry. Earlier this year, Inmarsat’s SB-S entered commercial service as the first and only global aviation broadband solution for operations and safety communications. SB-S allows airlines to utilise rich, real-time data to drive decisionmaking, improve operational efficiency and assure the highest levels of safety in the skies. SB-S delivers revolutionary new capabilities to the flight deck through the Electronic Flight Bag (EFB), from real-time weather reports to inflight aircraft health and performance monitoring.

JULY/AUGUST 2018 47


GLOBAL EXPRESS TRANSPORT BUSINESS

Turkish Airlines

broadens its horizons

48 JULY/AUGUST 2018

The media briefing and signing ceremony of the joint venture between Turkish Airlines’ Turkish Cargo successfully representing Turkey all around the world with Chinese cargo giant ZTO and Hong Kong based PAL Air Ltd. took place recently in Istanbul


GLOBAL EXPRESS TRANSPORT BUSINESS

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his partnership regarded not only as a huge strategic step for Turkey prior to the opening of the Istanbul New Airport but a game changer for the global express transport business, was sealed and signed by Turkish Airlines Chairman of the Board and the Executive Committee, M İlker Aycı, ZTO Express Chairman Mei Song LAI and PAL Air Ltd. Vice-Chairman Vivian Lau. “Today, I feel privileged to welcome you all for the signing ceremony of a great

partnership agreement between the biggest brands of China and Turkey. As Turkish Airlines, ZTO Express and PAL Air Ltd., we are announcing the signing of the MoU to build a Joint Venture (JV) company to operate as a Global Express/Courier company mainly focusing on the global e-commerce market with full door-to-door services. We are now delighted to make this strategic move into the global express business together with the strong partnership of ZTO, the best and largest express company from China

and our long term cross border forwarding partner PAL Air Ltd. from Hong Kong. The JV, after reaching quickly to fully functional and operational levels, is expected to take place within the world’s largest integrators. In five years’ time it will generate over US$2 billion in revenue. The growth is expected to continue gradually parallel to the e-commerce demand. The Istanbul New Airport will open on October 29 and will function as Turkish Airlines’ main operating hub. This mega

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hub, will gradually provide Turkish Cargo up to four million tonnes of cargo handling capacity, becoming one of the top five air cargo brands of the world. The flow of e-commerce products globally with this JV and via Istanbul Mega Hub; will provide maximum value to our customers worldwide.”said Aycı. The services of the new global express joint venture company which will be based in Hong Kong, will include all door-to-door logistics activities; trucking, collection and distribution, freight transportation, cross docking and final mile delivery. It will also include warehouse management, order and supply chain management when necessary.

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Alibaba Group amongst the partners ZTO is the world’s largest parcel distributor, with a daily delivery count of 28 million parcels and additionally having the widest express delivery coverage in all of China. In fact, very recently, global giant Alibaba Group announced that they were to buy 10 per cent of the ZTO Express through an investment of US$ 1.38 billion, deal was closed in June. PAL Air Ltd. on the other hand, has launched a B2C Wholesale Postal Express Service including last mile fulfillment to the Retail Express Services Providers in Hong Kong, China, Thailand, Vietnam, India and the USA.

Speaking at the ceremony, ZTO Express Chairman Mei Song LAI commented,“In 2017, ZTO’s annual parcel volume reached 6.22 billion parcels. As the largest express delivery Company in the world, ZTO is an open platform built on core values of “Co-create and share”. Because of the innovation and globalisation of new retail and e-commerce, China’s logistics industry is provided with tremendous new growth opportunities. ZTO will continue to solidify and strengthen its competitive advantage for domestic growth, and will actively explore and expand international markets, building cross-border businesses as an important growth engine for the future.


GLOBAL EXPRESS TRANSPORT BUSINESS

The cooperation between the three partners will form synergy by combining strong core competencies and integrating key resources, and will undoubtedly affect positive progress in the areas of global express delivery, warehousing, cargo freight, and aviation route development and more, and will ultimately benefit traders and consumers globally.” Pal Air Ltd. Vice-Chairman Vivian Lau said, “We are in one of the most exciting times of human history. IoT, robotics, artificial intelligence, 3D printing, VR/AR/MR will unleash unprecedented opportunities and challenges. To add to this list, the world is awaiting the launch of 5G which promises

10 gigabits per second, a 100 times faster than the current 4G technology. All these will provide further fuel to the already explosive e-commerce development. PAL is honoured to have played a role in creating a three parties venture that will unleash the best of three worlds, together with two global giants, Turkish Airlines and ZTO. Turkish Airlines, ZTO, and PAL looks forward to the creation of a world class integrator.” Along with booming e-commerce volumes, the global express/courier industry continues to show outstanding growth rates. In 2016, this industry had around US$260 billion in revenue realisation and it is now expected to reach US$340 billion by 2020

and go up to more than US$400 billion by 2023. With this partnership, all sides are all engaged to increase their capability and exposure significantly. Turkish Airlines, operating the largest global airline network in terms of reach and international destinations and countries is flying to over 300 destinations in 121 countries, with this step, business scope will expand and provide a seamless service to its customers from pickup to line-haul to doorto-door delivery. At the same time ZTO, and Pal Air Ltd. will broaden their market focus from domestic China to global markets by using Turkish Airlines’ world-wide exposure and network capability.

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MATERIALS HANDLING TECHNOLOGY

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echnology has disrupted every industry and supply chain is no exception. As logistics becomes the backbone of every industry like retail, e-commerce, consumer goods, and healthcare, the business world today is aligning its strategies

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with respect to the ongoing and upcoming logistics trends, such as robotics, artificial intelligence (AI) and machine learning algorithms. Once-futuristic technologies like Google Glasses and drones are already helping to improve speed and bring more convenience

to customers. With the recent technological advancements, companies are aiming at improving their delivery happiness score and enhancing the customer experience. Based on our observation of the past two years, following is a look at the trends that we all need to consider.


MATERIALS HANDLING TECHNOLOGY

Blockchain Blockchain and AI first certainly made their presence felt in the logistics industry this year. With the security and transparency blockchain offers, it offers an impenetrable way to store and share transactional data, while improving credibility with foolproof transactions. For example, if customer’s ID proof is available digitally through a blockchain

structure, it cannot be fudged by him at the time of delivery. Similarly, it’s possible to map the unique blockchain-enabled registration number of every vehicle against the delivery job IDs. By 2021, as much as 25 per cent of the large global companies will be piloting or using AI and blockchain-based automation in transactional procurement.

Delivery of choice If the customers were not already spoiled for choices in terms of buying portals, products and crazy discounts, they will also have the option to choose among logistics providers to receive their shipment by. There were only a handful of e-commerce companies offering

this feature last year but the trend has picked up in this year. This could be a game changer for logistics companies, as they can no longer afford to be in the background. They have to compete against each other with differentiated, customer-oriented services.

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efficiencies of first- and last-mile logistics can be increased, along with flexibility and the speed of delivery in complex and congested metro cities.

Data-driven logistics drive anticipatory logistics

Elastic logistics

Perfect order deliveries

Elastic logistics refers to the flexibility to expand and shrink capabilities to align with the demands within the supply chain during a given timeframe. Flexible automation solutions increase the agility and elasticity of the logistics infrastructure to cost effectively meet market fluctuations. It is not a“one size fits all” solution. However, it provides a customized answer to requirements like cost control, warehouse management, geographic restrictions, distribution channels, priority deliveries, and much more. Interplay of demand and supply defines the day-to-day operations in the logistics and supply chain industry. To handle the changing demand and the fluctuations in orders, logistics companies are making their operations elastic to plan the capacity according to the requirement. More and more companies will be outsourcing their fleets through third-party logistics providers (3PLs). With optimal utilization, companies can deliver on-time while keeping their costs intact despite the rise in demand. Elastic logistics, in short, can help by: enhancing customer experience, adding real-time visibility, connecting all business processes, and providing agility and scalability.

Another trend that continues to increase in prominence is the quest for perfect orders. The complexities of last-mile delivery make the odds against fulfilling a perfect order overwhelming, but as companies are discovering, perfect orders are the ultimate measure of customer satisfaction. Perfect orders are the percentage of orders delivered to the right place, with the right product, at the right time, in the right condition, in the right package, in the right quantity, with the right documentation, to the right customer, with the correct invoice. And in 2018, getting the orders not just right but perfect will be even more important than it is already.

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Drones and smart glasses With automation and mobility being part of the support system to compete with and hopefully stay ahead of the competition, smart glasses and drones will help drive logistics performance to next level. Backed by augmented reality, integration with smart glasses will make deliveries easier by handsfree route searches, face recognition for errorfree deliveries and personalized deliveries. With the rise in unmanned aerial vehicles and smart glasses adoption, the operational

By anticipating demand and studying the data patterns, companies can predict product demand, and thereby plan and align their operations well in advance. In the ever-changing marketplace, staying ahead by delivering service is the key and datadriven logistics will help enhance the future of logistics. Companies will adopt Big Data algorithms, data visualization techniques and smarter analytics to boost process efficiency and service quality by shortening the delivery times. However, the big change in 2018 will be that companies will use geographybased search trends to anticipate demand of certain products in a region and ship in advance. So, for instance, if a lot of people in New York are searching for a new book due to be launched next week, some extra copies can be shipped to the nearest hub to make the most of this opportunity.

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Building a sustainable and profitable supply chain Logistics companies have been tying up their business and sustainability goals. With an objective to reduce carbon emissions, companies are adapting best practices that are helping them reduce their carbon footprints. The Paris Agreement and the World Economic Forum have been warning about the alarming rates of carbon gas emissions. According to the World Economic Forum, companies like UPS, DHL, SABMiller and Nestlé are among the top companies focusing on sustainability, with some revenue increases as high 20 per cent while cutting down supply chain costs as much as 16 per cent. In order to achieve efficiency and reduce carbon emissions, companies will collaborate with logistics companies that offer intelligent auto-routing and smarter operations. Overall, the logistics industry is moving towards simplifying the most cumbersome processes by eliminating mundane and repetitive tasks to create a more effective organization while satisfying their customers’ wants and needs. www.mhlnews.com

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GUEST COLUMN

Future cities – what to expect?

The Internet of Things (IoT) is gaining traction, impacting every area of our lives and quickly turning “Smart Cities” from intangible visions of the future into a reality. Moe Raslan, Regional Sales Director for Ruckus Networks in the Middle East and Africa shares his expertise on what to expect from the cities of the future

Moe Raslan

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round the world, cities like Dubai are becoming more connected, collecting data everywhere to help planners make smarter decisions and deliver new services. Dubai is leading the smart city transformation by living up to the rising demands and planning for capacity and speed to ensure a high-quality experience. Having a robust wireless network is a key part of this preparation – it is the “glue� that holds smart cities together, enabling effortless sharing of workloads with data centres and bridging connectivity across wired and wireless. So, what can we expect from the smart cities of the future?

Digital signage Digital signage can be used in a variety of ways to make information more accessible. It

is especially useful for business services, such as displaying local business information, adverts or promotions for tourist information. Interactive digital kiosks can also be deployed, providing people with information at their fingertips. Digital signage can also be used for infrastructure services. Some cities currently use them to display pollution levels and to communicate emergency warnings. They can also be used for displaying real time transport updates, warning of congestion based on data collected from sensors in the city.

Engaging tourists When travellers arrive from abroad, the first thing they do is switch off their data subscription. However, this is actually the precise moment when they need it the most. Data is essential to help

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them navigate the city, providing access to information such as maps and local amenities. They will always be looking for Wi-Fi to enable their journey to continue smoothly. Smart cities will be equipped with the technology to help tourists make their way with continuous connectivity. Whether it’s used for accessing local bus timetables on their mobile devices or downloading maps to local museums, city-wide Wi-Fi is key to connecting people to knowledge. In today’s world, access to the Internet is considered a necessity. Connectivity should not drop as people move between shops or hop on and off transit.

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Business Revenue-generating applications will transform the way businesses in smart cities communicate with their customers. In addition to an increased use of digital signage, to communicate offers and promotions, we can expect to see an increased use of beacons, which send notifications to customers’ smartphones as they enter a store. It will also transform the way people work and tech-savvy commuters will benefit from smart city technology to work on-the-go.

Bridging the digital divide Many of us take Internet access for granted. The reality is that there is a digital divide,

with half of the world’s population lacking access to the Internet. Smart cities will help address the economic and social inequality that this divide creates, by providing Internet access to all citizens. Bridging this divide will help bring communities closer together and encourage citizens to play a more active role to local councils. Flawless connectivity will improve city infrastructure and make it possible for citizens to engage with their community, such as removing the roadblocks that complicate access to local services. As technology continues to advance at a rapid pace, the vision of the future is still emerging and we have yet to see what a true


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SmartZone network controllers launch in region Ruckus Networks, an ARRIS company, today announced the availability of SmartZone network controllers - newly enhanced versions of its SmartZone WLAN controllers - powered by the latest release of its SmartZoneOS software. SmartZoneOS 5 transforms the industry’s most scalable WLAN controllers into a comprehensive single network element to control and manage both Ruckus access points (APs) and switches. The new SmartZone network controller family includes physical and virtual appliances designed for managed service providers, operators and medium to large enterprises. “The launch of Smart Zone network controllers will strongly resonate with the direction Middle East is heading. Regional leaders, predominantly across Gulf countries, invest in the development of smart cities to support rapidly growing populations and diversify their economies beyond the oil industry. Regional entities have been busy rolling out and upgrading various services and infrastructures to meet their rapidly evolving B2C, B2B, transportation, water-management and urban-planning needs. Connectivity is one of the most crucial elements for a successful development of smart cities and Ruckus’ innovative solutions are designed to ensure these merits are maintained consistently,” says Moe Raslan, Regional Sales Director for Ruckus Networks in the Middle East and Africa. First introduced in 2015, SmartZoneOS-powered controllers combine scalability, tiered multi-tenancy, architectural flexibility and extensive APIs into a single centrally-managed element. These capabilities enable managed service providers to implement complex, multi-tier and as-a-service business models using their own management applications. They also allow operators to manage subscriber data traffic on a massive scale, while integrating traffic flows and network data into existing network architecture. SmartZone network controllers further enable enterprises to simplify network management through consolidation and use of built-in troubleshooting and analytics tools. SmartZone products have been deployed in thousands of enterprises and in more than 200 service provider networks on five continents. “Whether you’re an operator, managed service provider or sophisticated enterprise IT organization, you need the ability to customize your network to meet specific business and technical requirements,” said Greg Beach, vice president of wireless products, Ruckus Networks. “Ruckus has embraced simplification through an ‘open’ approach to networking that acknowledges our customers’ and partners’ desire to build their own best-in-class architectures and gives them the tools to do so with relative ease.” “Organisations are looking for ways to reduce network complexity and automate complex processes,” said Brandon Butler, senior research analyst for Network Infrastructure, IDC. “The SmartZone network controller complements the company’s introduction of a converged IoT access network and is further evidence of Ruckus’ commitment to addressing the network

complexity challenge, in this case by consolidating network management and better enabling process automation.”

Simplifying converged network management IT departments seeking to manage both wired and wireless networks through a single console have traditionally needed to purchase a stand-alone network management element for on-premises management scenarios. SmartZone network controllers eliminate this requirement for many network types, simplifying and cost-reducing network management by: Eliminating provisioning errors through use of an automated discovery process for access points (APs) and switches; Reducing configuration and deployment duration when compared to a multi-console approach; Reducing network software and hypervisor license fees, server expense, utility expense and training costs; Enabling a single network controller cluster to scale to 450,000 clients.

Enabling networking-as-a-service Managed service providers (MSPs) and networking-as-a-service (NaaS) providers face the dual challenge of differentiating themselves through custom application development and managing their costs to ensure profitability in a fixed-revenue environment. Both challenges require integration between vendor networking infrastructure and their own or third-party applications. SmartZone network controllers enable service providers to better address these challenges by: Providing open, well-documented RESTful application programming interfaces (APIs) that allow IT to easily invoke SmartZone functions and configurations, enabling error-free automation. Providing streaming APIs that allow IT to monitor in near realtime the full array of Ruckus network data, statistics and alarms, allowing for the easy creation of customized, information-dense dashboards and reports within their own applications.

Partner Support “By partnering with Ruckus for wired and wireless networking, we have been able to provide our customers with the best, most reliable and up-to-date technology solutions,” said Jon Novakowski, chief visionary officer, Vector Tech Group. “The addition of out-of-the-box switch management into the new version of SmartZone will be extremely valuable to delivering an even better solution for our customers.” “The SmartZone API libraries have enabled us to provide enhanced visibility and management capabilities through our customer-facing portal in a secure manner while lowering our own cost of providing service” said Sam Beskur, CTO for GX2 Technology (a Superloop Company). “With Ruckus’ introduction of the SmartZone network controller, we have the ability to differentiate our product even further by extending these same advantages to the wired LAN. This is ultimately good for business and most importantly for our customers’ satisfaction.”

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smart city will look like. Smart City IoT is an evolving concept, with lots of ideas but only a few complete deployments. Wi-Fi is the platform that will provide the foundation for smart city success, as it has immediate applications and can effectively connect a vast range of wireless technologies that will be involved in creating smart cities. As Jesse Berst, Chairman of the Smart Cities Council puts it – “fast, reliable broadband is the backbone of a smart city. It’s Job One.”

Smart utilities In a smart city, lighting will automatically be switched off when it isn’t needed. It will be able to detect when people are on the street and turn on and off accordingly, reducing

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energy waste. In the near future, we can expect to see more city planners equipping their streets with smart lighting that uses sensors to track when there is high or low public footfall. Future smart traffic management is likely to be a core feature of smart cities. This includes centrally-controlled traffic sensors and signals automatically regulating the flow of traffic in response to real-time demand, with the aim of smoothing flows of traffic to reduce congestion. New technologies will play an important role to help cities of the future promote sustainable energy use. For example,“smart bins,” that alert collectors when they need to be emptied are being used today and

we can expect to see more of them crop up in cities across the world as they embrace smart technology. However, before becoming truly “smart”, cities need to implement the networks that will enable them to deploy new technology. One key challenge lies in selecting the correct partner to work closely with them to identify and meet all their Wi-Fi needs. The right network will enable a city to save money through increased efficiency (for example, smart traffic and energy systems, as well as optimal budget allocation) and generate additional revenue, by encouraging visitors to return, businesses to invest and people to take up residency.


GLOBAL SUPPLY CHAIN JULY AUGUST 2018 ISSUE  

Supply Chain, Supply chain management , logistics and supply chain segmentation, warehousing, RFID, healthcare logistics, 3PL, 4PL, six sigm...

GLOBAL SUPPLY CHAIN JULY AUGUST 2018 ISSUE  

Supply Chain, Supply chain management , logistics and supply chain segmentation, warehousing, RFID, healthcare logistics, 3PL, 4PL, six sigm...