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Skills and salaries Hays’ perspective

ME’s many logistics hubs Over saturation?

Next gen eco clusters EnhanCinG ThE buSinESS oF loGiSTiCS

Enhancing economic growth

48 37 30


June 2014 Issue 05

YOUR PEOPLE = YOUR FUTURE How economic growth and the recent recession is weighing in on the employee


London to Abu Dhabi, daily When Paul Owen needed to get machine parts to Abu Dhabi, he called Etihad Cargo. With 35 passenger flights we offer a total weekly capacity of 642 tons from London to Abu Dhabi and beyond. So whether it’s machine-parts or computers, visit for more information, or contact your local Etihad Cargo representative and we’ll take it from there.

Paul Owen, Freight Forwarder, London, UK

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boltless shelving, plastic storage bins, totes

forklifts, reach trucks, stackers

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customised warehousing solutions that work

The employee saga SIGNATURE MEDIA FZ LLE P. O. Box 49784, Dubai, UAE Tel: 04 3978847/3795678 Email: Exclusive Sales Agent Signature Media LLC P.O. Box 49784, Dubai, UAE Publisher: Jason Verhoven Director: Deepak Chandiramani Managing Editor: Munawar Shariff Art Director: Raveendran Production Manager: Roy Varghese

Printed by United Printing Press (UPP) – Abu Dhabi Distributed by Tawseel Distribution & Logistics – Dubai

Contributor’s opinions do not necessarily reflect those of the publisher or editor and while every precaution has been taken to ensure that the information contained in this handbook is accurate and timely, no liability is accepted by them for errors or omissions, however caused. Articles and information contained in this publication are the copyright of Signature Media FZ LLE & SIGNATURE MEDIA LLC and cannot be reproduced in any form without written permission.

It’s a tough time to be an employee in the region. Well, ok, in all honesty, these days are better than a couple of years ago. But since the topic is about the situation of the moment, let’s discuss that - sky-rocketing rents; rising living costs coupled with stagnant salaries. The story of all our lives. I spoke with a number of recruitment experts to research and write the cover story which is all about the employee status in the logistics and supply chain industry. What I gathered is the situation regardless of any particular is the same. What we’ve come from 2011 till date is to a very cautious employer who doesn’t want to make the mistakes of 2008/9. Hence he is making doubly sure the employee he is hiring is the absolute right person for the job. This is a good thing as eventually standards are being improved. At the same time, salaries which were being given two years ago are still the same. And with the Expo 2020 success, property and rent prices have gone up to 2008 levels. Lots of people have moved to secondary cities Sharjah and Ajman. However rents there are now what rents were in Dubai till just before the Expo 2020 announcement, extremely high too. Most of the recruitment experts were in wait and watch mode to see where the situation goes from here. Having said that, there are some successful multinationals that are increasing housing allowance by 15 to 17 per cent for a percentage of their employees. However, not everyone can expect that. What I also concluded was the fact that very gradually the market is moving towards the interests of the employee from the employer. The move, however, is a very slow one. Things might be notable by the end of this year. Fingers crossed. Munawar Shariff Managing Editor

June 2014 3


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June 2014 Issue 05


20 04 News 10 Focus on the

private sector

The Kingdom diversifies

16 The best resource

Almajdouie – an employee’s dream company

20 Your people = your future

The recruitment market is gradually changing

37 The Middle East’s many logistics hubs

Will the many regional logistics hubs kill the market?

47 Making the cut

The ever expanding logistics industry needs talent

48 Next generation

economic clusters

Emerging economic zones are enhancing economic development

30 Skills and salaries

57 Linde’s safety pilot

33 Tapping social media to

58 Public transport

When economic growth doesn’t match employee benefits

power your supply chain

Building a community through the social media



Linde’s recent successful three-week “World of Material Handling” event

for the future

A report from the UITP Mena Congress 2014

60 Unwind

Agility’s Global Integrated Logistics President and CEO, Essa Al Saleh shares his management style

33 JUNE 2014 5

Etihad’s fifth year in Greece

New regional GM at CHEP CHEP has appointed Paul Kinsella as Director, Country General Manager of its Middle East pallets operation. Paul started his career with CHEP in Australia in 1999 and left the company for two years when he moved to the Middle East in 2004 to work at the thirdparty logistics division of Gulf Agency Company in Dubai. At Gulf Agency Company he managed accounts for multinational companies, such as GSK, Gillette and Pioneer. Paul re-joined CHEP in 2006 as Regional Operations Manager for the Middle East, where he was responsible for CHEP’s supply chain strategy within the Gulf Cooperation Council region. For the last two years, Paul has been based in Warsaw, Poland, working for CHEP as Director of Supply Chain for Central and Eastern European pallets operation. Kinsella says, “CHEP’s value proposition is unique, as we offer the most sustainable and cost-effective solution when compared with traditional owned equipment pools, disposable equipment or exchange equipment pools. I’m excited to be back in the region and to lead our business through the next stage of growth.”

6 JUNE 2014

Etihad Airways and codeshare partner Aegean Airlines, are celebrating five years of Etihad Airways’ non-stop services between Athens and Abu Dhabi, and the start of Aegean’s new direct flights to the UAE capital. Etihad Airways commenced operations to Athens in June 2009, and since then has carried almost 400,000 guests and nearly 3,700 tonnes of cargo on the route. To meet rising demand, the airline will increase its current daily Athens-Abu Dhabi services to 10 per week on July 2. Peter Baumgartner, Etihad Airways’ Chief Commercial Officer, says, “Year on year, our Athens route has exceeded our expectations and we are delighted

to build on this success by adding more capacity to and from Greece, and officially mark our codeshare partnership here in Athens with Aegean, Greece’s largest commercial airline.” Dimitris Gerogiannis, Aegean Airlines Managing Director, says, “We congratulate Etihad Airways on the fifth anniversary of its operations to Greece, and we are delighted to be working together to launch our direct flights to Abu Dhabi. “Aegean strongly believes that through partnerships like the one we inaugurate today with Etihad Airways, that we will continue our active support for the tourism industry of our country.”

From left to right: Peter Baumgartner, Etihad Airways’ Chief Commercial Officer, and Dimitris Gerogiannis, Aegean Airlines Managing Director celebrate Etihad Airways’ five years of Athens-Abu Dhabi services and the start of Aegean’s direct flights from Athens to Abu Dhabi.

Emirates ups services to India

Emirates’ A380 was last in India on 12th March at the Indian Airshow in Hyderabad. Emirates will expand its A380 network to 28 destinations, when it launches a daily A380 service to Mumbai International Airport on July 21. EK 500 and EK 501 between Dubai and Mumbai will be up-scaled to a threeclass A380 aircraft, representing with a capacity increase of 2,127 seats per week in each direction. This offers passengers flying to India from key destinations in North America and Europe the chance to experience Emirates’ hugely popular flagship aircraft on this route.

In addition, Emirates will deploy larger Boeing 777 aircraft to Delhi and Hyderabad to serve growing demand. Delhi will have 980 additional one-way weekly seats while Hyderabad will increase its capacity to add 672 one-way weekly seats. A combined total of 3,779 one-way weekly seats will be deployed on Mumbai, Delhi, and Hyderabad through these aircraft upgrades. This follows the recent bilateral discussions between the governments of Dubai and India, which

provided a phased increase of 11,000 seats for Dubai carriers. “Air transport is an important economic driver. It facilitates trade and tourism, and has a multiplier effect through direct and indirect job creation. Emirates has been serving India since our founding year in 1985, and it is our largest market today which we serve with 185 flights each week. We look forward to working with the new Government in India to grow India’s economy through enhanced aviation connectivity and to realize India’s ambition to grow its international aviation market to 85 million passengers by 2020,” said Ahmed Khoory, Emirates’ Senior Vice President, Commercial Operations- West Asia & Indian Ocean. “Many customers specifically book their flights to our destinations knowing that they will have the chance to fly on the A380. Now that Mumbai is being added to our global network of A380 destinations, I’m sure this will come as welcome news to many of our passengers across Europe and North America who can now fly all the way from their origin point of departure to Mumbai exclusively on the A380,” said Ahmed Khoory.

Dubai Trade’s fourth CTLP graduation Dubai Trade graduated the fourth batch of 274 professionals in supply chain and cross border trading through its Certified Trade and Logistics Professional (CTLP) course. The graduation ceremony, which was held at the Al Fardha Hall in Dubai Customs premises was attended by host senior

officials including Eng. Mahmood Al Bastaki, CEO of Dubai Trade CEO, Steve Cross, Board Member of Chartered Institute of Logistics and Transport (CILT) UAE along with senior officials and graduates from DP World, Dubai Customs and Dubai Trade. The CTLP is the only comprehensive

and progressive vocational training course that covers the end-to-end process of import and export in the UAE and the region. The hands-on programme is designed to give trainees an in-depth understanding of the full business concepts and procedures related to all

stakeholders involved in the trade supply chain. Other than being endorsed and supported by the International Chartered Institute of Logistics & Transport (CILT), the CTLP is also accredited by Knowledge and Human Development Authority (KHDA) in Dubai.

JUNE 2014 7

Qatar Airways is first commercial flight at HIA Qatar Airways recently commenced full operations at its new state-of-the-art hub, Hamad International Airport (HIA). With the first Qatar Airways commercial flight QR1113 from Bahrain landing at HIA, all operations for all airlines have now been transferred to HIA. “The moment we have all been building towards for many years arrived today as QR1113 touched down, marking the historic start of our full operations at the world-class Hamad International Airport,” said Qatar Airways Chief Executive Officer, His Excellency Akbar Al Baker. “This is yet another milestone in the rich history of Qatar Airways, and one that will allow us to fully realise our ambitions, and to offer our passengers the very best of services, both in the air and on the ground.

His Excellency Akbar Al Baker, Qatar Airways Chief Executive Officer ( left ) and His Excellency Abdul Aziz Mohammad AlNoaimi, Chairman of Qatar’s Civil Aviation Authority together marking the operational transition to Hamad International Airport

“Qatar Airways will be able to offer an exceptional passenger experience, as HIA has been designed with passengers foremost in mind. The airport will also be able to accommodate the world’s largest aircraft, such as our much-anticipated Qatar Airways Airbus A380 which will commence operations to the UK in June and France in July.” With more than 70 retail outlets offering an unprecedented selection of designer labels, high street fashion, electronics, gourmet foods and much more, Qatar Duty Free at HIA also has more than 30 cafes and restaurants with a sumptuous selection of global and local cuisine. The new airport is located on the East coast of the peninsula, just 16km from the centre of Doha and 4km from DIA.

Etihad Airways to establish flight training college Etihad Airways recently announced it is establishing the Etihad Flight College, a world-class flight training facility in the United Arab Emirates for Emirati and international cadet pilots. As a first step in establishing this college, Etihad Airways is in the process of acquiring the fixed wing training division from Horizon International Flight Academy (Horizon), a wholly-owned subsidiary of Mubadala Development Company. Based in Al Ain, Horizon has provided helicopter (rotary wing) training programmes since 2003, and airplane (fixed wing) training

8 JUNE 2014

since 2007. At Horizon, pilots can qualify for their Private Pilot’s Licence (PPL), Commercial Pilot’s Licence (CPL) or Airline Transport Pilot Licence (ATPL). James Hogan, Etihad Airways’ President and Chief Executive Officer, says, “The establishment of the Etihad Flight College is a natural part of our strategy to produce the best pilots to support our rapidly expanding fleet. It also helps underpin the growth and development of the aviation sector in Abu Dhabi.” Etihad Airways currently employs over 1,600 pilots and places great emphasis on recruiting the best pilots from

around the world, including Emirati pilots. The assets to be acquired include 13 Cessna 172SP Skyhawk aircraft, three Diamond DA42NG aircraft, two flight training simulators and Horizon’s hangar facilities at Al Ain International Airport. All fixed wing flight instructors and some support staff currently employed by Horizon will transfer to the Etihad Flight College ensuring there is no disruption to the ongoing cadet pilot training programs. Etihad Flight College will also implement the innovative Multi-Crew Pilot Licence (MPL), a competency-based

training program that is focussed on developing cadet pilot candidates into high quality First Officers on completion of their training. Etihad Flight College will be the first organisation in the world to use multi-engine aircraft in the core phase of its MPL training program. Cadet pilots will benefit from the utilisation of advanced aircraft and simulation training throughout the program in a multi-crew setting – where two pilots conduct operations that are focused on the safe and efficient operation of an aircraft, as opposed to the traditional single-pilot model that is prevalent in the industry today.

DHL delivers a world class road safety campaign

dnata boosts cargo infrastructure throughout UK dnata continues to develop cargo infrastructure at its newest locations, having invested more than £8 million (almost US$13.4 million) throughout the United Kingdom. Recognising the need for enhanced services at Glasgow, Birmingham, East Midlands, Newcastle and Gatwick airports, and moving the Manchester warehouse space to larger, refurbished facilities, dnata has improved the flow of air cargo in the UK. Beyond the physical space, dnata has modernised each facility through technology. From handheld devices for workflow management and barcoding to latest access control system technology, dnata has translated the success of its Heathrow hub - dnata City - to its newest locations. “With an overwhelmingly positive response from our customers at dnata City, we’re confident mirroring the same level of service at other airports will benefit our clients and the

industry at large,” said Gary Morgan, CEO of dnata’s UK operations. Over the past four years, dnata has built its reputation as a leader in the UK air cargo industry. With the expansion of warehouse facilities at each location, dnata is now able to handle more than 250,000 tonnes of cargo across the country. The company has hired 120 full-time employees to ensure imports and exports transition smoothly from airport to airport. To support the network, dnata has established a new regional logistics centre, operating road feeder services linking the airports. “Expanded warehouse facilities at Glasgow, Birmingham, East Midlands, Newcastle and Gatwick and new facilities at Manchester translates into job creation, increased capacity and more goods coming in and out of the country—a good thing for the industry and the economy,” added Morgan. dnata’s recent growth takes its total cargo locations across the UK to seven.

DHL has enlisted the expertise of Matrix, to implement DHL’s latest employee road safety campaign. The goal of the campaign is to educate DHL employees in countering any potential risk of road accidents and to ensure their safety behind the wheel by partnering with a top safety consultancy that focuses on enhancing road safety practices of companies operating large scale land transport networks. The campaign will include training all DHL express UAE employees and certifying them as road safety champions. The training will result in a benchmark being set to assess the driving skills and future performance of all DHL couriers and truck drivers. The training modules and certification will also enable DHL employees to assess road safety incidents and write a comprehensive report should a situation arise. Incident reports can later be used to develop case studies, risk analysis and future KPI’s. The appointment of Matrix is just one example of the work DHL undertakes in order to refine the care it provides to employees. Earlier this year DHL was named the number one top company to work for in the UAE by Best Places to Work, the annual benchmarking study which assesses the level of credibility, respect, fairness, pride and camaraderie within an organisation.

JUNE 2014 9


10 June 2014

Country report

Trends and Challenges for Logistics in Saudi Arabia GDP and Federal Finances As oil production stabilizes in Saudi Arabia, the real GDP growth is expected to be 4.1% in 2013 With the global economic environment still recovering, the public sector and state credit institutions become additionally important to finance investment activities Private investment is being encouraged in partnership with state owned companies (PPP) or in projects contracted out by the public sector The government continues to monitor its economic intereststhrough substantial stakes in state owned companies which are partially privatized by IPOs FDI Confidence and Competitiveness Saudi Arabia continues to reform with the goal oflanding on the top tenof the World Bank’s annual doing business rankings Saudi Arabia is ranked 18thin the World Economic Forum’s 2012-2013 Global Competitiveness Index Tariffs for power and water have risen but the government is unlikely tolevy additional direct taxes unless revenues from oil underperform The corporation tax (capped at 20%) is likely to continue to apply to non-Saudi firms Development Outlook 2015 logistics sector revenues are forecasted to hit around $20.6 billion Extensive growth opportunity exists for the freight forwarding market due to the high growth in exports of ~$381 billion in 2012 and imports ofaround $137 billion and a rise in domestic uptake of major manufacturing and consumer oriented industries such as retail, fast-moving consumer goods, engineering, chemicals, food and electronics The government plans to invest on multimodal logistics networks that integrate air, sea and rail, thus saving costs, increasing performance, connectivity and supporting economic development Saudi Arabia’s logistics sector is attractive for Logistics Service Providers (LSPs) due to the large regional economy size, which accounts for nearly two-third of the GCC’s economy Saudi Arabia continues to grow its infrastructure in line with growing logistical demands, increasingthe quality of service and resolving capacity issues in the current road network in Saudi Arabia along international borders with the United Arab Emirates, Yemen, and Oman, which resulted in significant delays for load carriers in the past Nearby regional political instability has the potential to adversely impact foreign investments, development potential and waterway access

Infrastructure Investment Outlook The 9th Development Plan for the Kingdom of Saudi Arabia signaled its intention to continue with its infrastructure investment and diversification drive. Saudi Arabia plans to invest ~$385billionuntil 2014 in social and economic infrastructure In 2012, the Kingdom of Saudi Arabia had awarded construction contracts worth ~$16 billion The government has also enhanced its transportation and communication projects budget to~$17billion for 2013 In addition, Saudi Arabia has major plans to improve its rail and metro network, investing an estimated ~$45 billion and adding 7,000-kilometre of track through many major railway projects Plans to invest more than ~$50 billion in port projects over the coming 10 to 15 yearsalso exist

June 2014 11

Country report

Logistics Projects and Outlook SEA Overview In 2012 Saudi Ports handled over 185 million tons, growing 13.8% compared to 2011 This growth was driven by both imports and exports, which grew respectivelyby 18% and 10.4% vs. 2011 General cargo handling and RORO vehicle handling grew respectively by 30.5% and 36.7% while container handling grew by 17.6% from the previous year Jeddah Islamic Port In 2012 till March 2013, around 20 maintenance and internal projects were undertaken at JIP at a cost ofaround $186million including the modernization of the electricity network, garages, sanitation channels, rehabilitation of roads, the construction of administrative buildings, renewal of port docks, construction of new workshops etc. Expansion of the northern container station by adding three piers, back yards, and by adding gantry cranes and rubber-tired gantry (RTG) cranes, in addition to supporting equipment. The operational and handling capacity of the terminal stands now at more than 2.5 standard containers per year Construction of a new container station on the north western side of the port. The terminal is made up of four piers, and is equipped with 10 gantry cranes and 30 RTG cranes. The operational and handling capacity of the terminal stands now at more than 2 million standard containers per year with plans to upgrade the southern container terminal to increase the operational and handling capacity to more than 2.5 million standard containers per year JIP administration is currently conducting a study for the upgrade of JIP’s operational and handling capacity, through the construction of a new container terminal in the southwestern part of the port. JIP is also studying the possibility of expanding the three container terminals currently available at the port Dammam King Abdul Aziz Port The construction of the second container terminal at King Abdul Aziz in Dammam will raise the capacity of the port to about 4million TEUs annually. The construction started in August 2012 and is set to end in 2014

The investments in the 2nd container terminal project is estimated at$533million with a capacity of up to 2 million TEUs after the completion of construction stages Several large projects to connect Red Sea ports with Arab Gulf ports are being executed. In addition, the planned railway network will link Ras Al-Khair Port to other ports at the Arab Gulf (e.g. King Abdul Aziz Port in Dammam and Jubail ports) Jubail Commercial Port The handling capacity has reached 9 million tons and 300,000 containers Logistics projects backed by major petrochemicals exporters is intended to make JCP the main exporting gateway for petrochemical products (mainly polymers) in the Kingdom In addition, the port currently supervises the Jubail fishing harbor with prospects to develop a stronger fishing sector Ras Al-Khair Port The Kingdom is building a three-berth port to handle dry bulk, liquid bulk and general cargoto boost the dry bulk export capacity in the Eastern Province,worth $600million Ras Al-Khair port handled its first vessel in February 2011. The port is suitable for tonnage up to 70,000 dead weight tonnes and can handle a range of industrial commodities including aluminum, bauxite, construction materials and chemicals King Abdullah Economic City Sea Port KAEC Sea Port’s capacity is expected to commence operations in2013 with a gradual expansion to around 4million TEUs by 2016. The construction will cover a 14 million square-metre seaport at a cost of $6billion The maximum potential capacity of the port is expected to be 20m TEUs The port is expected to become the only port in the Kingdom to be located within a free zone hence decreasing custom clearance efforts and becoming more efficient KAEC Sea Port has the long-term potential to provide alternative/ additional capacity to Jeddah Islamic Port for shipments between Saudi Arabia and Europe or Asia The construction contract is stipulated to complete in 2019

AIR Overview There is a need to adjust airport infrastructure to accommodate the increasing passenger demands while GACA plans to invest up to $53billion in the air transport industry over the next five years. GACA plans to spend around $10.66bn on building new airports until 2030. GACA is planning additional new airports at Al-Qasim and Abha King Khalid International Airport (Riyadh) Saudi Arabia’s General Authority for Civil Aviation (GACA) has selected the joint venture of Turkey’s TAV and the localAl-Arrab Contracting Company for the estimated $400million contract to build the new Terminal 5 building at King Khalid International airport in Riyadh Terminal 5 is part of GACA’s significant expansion program for King Khalid International Airport, which will increase the airport’s annual

12 June 2014

capacity to about 24 million passengers from the current 14 million King Abdulaziz International Airport expansion (Jeddah) This $8billion development of a new passenger terminal will increase the handling capacity in Jeddah in three phases, taking capacity to 30 million, 45 million and 80 million in stages 1, 2 and 3 respectively. The project is expected to complete at the end of 2025 About 40 percent of work on King Abdulaziz International Airport expansion project has been completed with the new Jeddah airport is expected to be operational in 2014 The new Jeddah airport is designed to become one of the largest hubs in the world, covering an area of 670,000 square meters. It will consist of 82 domestic, international and VIP lounges in addition to 96 air bridges

Muhammad Bin Abdulaziz Airport (Medina) GACA is expanding the Prince Mohammed bin Abdulaziz airport in Medina while adding a second runway with a new 256,000 square metres passenger lounge and commercial areas. Also the current runway is being upgraded as is the existing passenger terminal The airport will have a planned capacity of 8 million passengers a year after the completion of the expansion project The $1.5billion contract is expected to be completed by the end of 2014 covering passenger terminal, runways, apron and taxiway, new passenger lounge (670,000 sq m), air control tower (136 meter long), commercial areas and associated facilities

Jizan Airport The airport will be located at a distance of 30 km from Jizan Economic City(JEC) and will have an estimated value in excess of $500 million The airport will have the capacity to handle up to 2.4 million passengers a year. The project will involve building a three-storey passenger terminal, a control tower, air cargo zones and other facilities. The terminal will have 10 gates and a VIP lounge Hail Airport The international airport is planned to be completed by 2025 and will focus on cargo linking in with the development of the Hail economic city which will focus on logistics

RAIL Overview Saudi Arabia is spending ~$45 billion on its rail network adding 7,000-kilometres of track through many projects The first of which is the Saudi Landbridge project, a 950-kilometre railway which will connect Jeddah and Dammam. Secondly the 450-kilometre Haramain high-speed which will connect Mecca and Medina via Jeddah and finally the North South Railway which joins the northern mineral belt with Riyadh and the industrial city of Jubail

Its completion is planned for 2015 at a cost of around $2.5billion. The main stations at Mecca and Medina will include concourses, 5 platforms, mosques, civil defense stations, helipads, 10 terminals, parkings, lounges shops and cafes - Phase 2, includes the construction of the tracks, the installation of signaling and telecommunication, electrification, operational control center, buying 35 trains and the operation and maintenance over 12 years. The contract value for this phase totaled around $8billion

Saudi Landbridge East-West connection between Riyadh and Jeddah (950 km), will upgrade the existing Riyadh-Dammam line and then be extended from Dammam to Jubail (115 km) The Landbridge will offer freight opportunities for the transport of containers between the country’s main container ports, Jeddah and Dammam, passing though the Kingdom’s capital of Riyadh. It will connect the red sea to the Arabian gulf The Land bridge Project is one of the largest projects in the GCC for “Build, Operate and Transfer” (BOT) work. It allows freight of cargo imported from East Asia via the port of Dammam, and from the western countries via Jeddah Islamic Port It is forecasted that in 2015 the number of container handled will be more than 700,000 while over 8 million tons of freight cargo will be distributed in the Kingdom and neighboring countries For passenger transport, it is expected that the (Riyadh-JeddahMakkah), and the (Jeddah-Riyadh), and the (Jeddah-Dammam) lines will serve several million passengers per year The railway project linking Riyadh to Jeddah will alone cost around $7billion constructed over 7 years The project is pivotal for the petrochemicals industry of the country and for interconnection with the GCC

North-South Railway It is a 2,400-kilometre passenger and freight rail line originating in the capital city Riyadh, in the north-west of the country, to Al Haditha near the border with Jordan The line is expected to transport four million tons of commodities (phosphate from Hazm Al-Jalamid and Bauxite from Al-Zubayrah) and two million passengers every year

Haramain High-Speed Railway (Mecca to Medina) The ~$13billion and 450-kilometre rail project will connect Mecca, Medina, Jeddah, and KAEC by high-speed passenger rail (360 km/h). This project is intended to alleviate congestion on roads between Mecca and Medina mainly during the annual Hajj period The project has been divided into 2 phases: - Phase 1 covered 2 packages, the first package focused on the civil work construction with an implementation plan that would cover 36 months. Package 1 was extended until end of 2014 at a cost of around $3billion. Package 2 covers the development of the stations.

GCC Rail Network Saudi Arabia is expected to provide a critical contribution to the proposed pan-GCC Rail Network, with direct connections to Kuwait, Qatar, and UAE The overall project will cover around 2117km with 663km within Saudi Arabia The Saudi-Bahrain connection is estimated to exceed $5billion covering around 90km Yanbu-Jeddah Line This project will be pivotal for the petrochemicals industry of the country Taif Khamis Mushayt – Abha Line The length of this line is about 706km that will link Al-Taif with the land bridge on one side and Abha and KhamisMushayt, on the other side Jeddah and Jizan Line This line with 660km connects Jizan region with the city of Jeddah due to the rising economic growth promoting the importance of this line for Jizan region The Mecca Mass Rail Transit (MMRT) The project will include the construction of 4 rails, 88 stations and more than 180km of track to be completed by 2017

ROAD Overview Saudi Arabia continues to enhance its road network and border crossings to support economic developments

June 2014 13

Country report

Major seaports City

Port Name

Major Terminal Operators

Annual Containers (thousand TEU)/ % change vs. prior year Year


% change





Jeddah Islamic Port

• DP World • United National Marine Projects Co. Ltd. • Gulf Stevedoring Contracting Company • Globe Marine Services Company


King Fahd Industrial Port

• Sabtank


King Fahd Industrial Port

• Red Sea Marine Services Company • Globe Marine Services Company





King Fahd Industrial Port

• IPS International Ports Services Company





Jubail Commercial • Gulf Stevedoring Port Contracting Company





Yanbu Commercial Port

• Red Sea Marine Services Company • Ajwa Port Services





Jizan Port

• Al-Nawa Services Company • A.A. Turki Company





Dhiba Port

• Saudi Maintenance Corporation (Siyanco)




King Abdullah Economic City

King Abdullah Economic City Port (Under Construction)

• n/a

n/a (Under Construction)

Ras AlKhair

Ras Al-Khair Port

• n/a

n/a (bulk liquids and fertilizers)

Other seaports Ras Tanura (oil exports)

14 June 2014

n/a (bulk petrochemicals)

Saudi Arabia – Key Economic Drivers Foreign Trade Balance JOCJMMJPO



Major Products Agricultural Products







Fuel and Mining Products

Major Trade Partners



Manufacturing Others 




 Germany  South Korea Japan 


South  Korea 













June 2014 15

The best resource Being the massive company that it is, AlMajdouie can’t do all it does without its manpower. Today with 7,000 employees, most of whom have been with AlMajdouie for decades, the company’s COO Khalid Al Ghamdi, lets us in on the secret


ay back in 1965, Sheikh Ali Ibrahim Almajdouie started his land transport company with only about three or four employees (including himself). In a couple of years, the number of employees had grown to a couple hundred. Since it was a land transport company, the majority if the 200-300

16 June 2014

workforce were drivers. Today, more than four decades later, the company employs close to 7,000 people. “Most of the drivers in our company have been with us for 38 to 40 years,”says Khalid Al Ghamdi, COO, Almajdouie Group.“The culture at Almajdouie is one of equality. I mean, I’m not just saying this because I’m a part of the company. But it’s a fact. The CEO


or President or the driver, labourer, all are treated equally. “We take immense care of each one of them, once they are a part of Almajdouie, they are a part of the extended family. I do not recall even one occasion when salaries were delayed, or incentives/benefits denied. This is something which really builds confidence. It’s not a secret at all, it’s the

most normal form of human interaction, you give a person what he deserves, you make him happy, you get loyalty, dedication and ultimate productivity in return. I think this is the single major reason why we’ve managed to have staff hang around with us for such long periods of time.” Training is a major part of the career growth strategy adopted at Almajdouie.“Training is

provided from day one. From the time the employee joins us, whether it’s as a driver or a manager, they have to go through certain orientation programmes. Drivers have to go through three to four months of training and getting used to the vehicle before he gets behind the wheel,”continues Al Ghamdi. With the immense growth the company is experiencing and preparing for, acquiring talented human resources still remains a major challenge for Almajdouie.“The compulsory Saudization government policy is a major challenge not only for us but for all companies operating in Saudi Arabia,” continues Al Ghamdi.“We have to have a certain number of our employees regardless of position to be Saudis. Although we’re way above the minimum government percentage requirement, the challenge remains as we expand and as we need more and more employees. What’s more difficult is finding Saudi nationals who want to be drivers.” Another major challenge according to Al Ghamdi is finding Saudis who are qualified and experienced in the logistics and supply chain industry. The only way out of this problem is to train people, mainly Saudis, to be the logistics professionals the country is lacking. “We have our own institute since 2008 where we’re training fresh graduates and other students for three-six months or a one year programme depending on their choice. They then have the choice to work with us or work with other companies. This is also a part of our CSR strategy because we don’t charge these students anything. There is no benefit for us in running this institute other than the fact that we might get some qualified Saudi employees out of it,”says Al Ghamdi. The institute is affiliated with the Chartered Institute of Logistics and Transport (CILT) as well as the University of Michigan.“We are also certifying our drivers with the ADR certification which is the certification to drive dangerous goods. The ADR certification is around € 3,000 (US$ 4,089) and we’re charging them only 500 Saudi Riyals (US$ 133).” The supply chain and logistics industry is not an easy industry to work in and Almajdouie Group is ensuring their future by training a number of Saudi nationals in it. They are not only helping their purpose but empowering the next generation of Saudis to have this industry as one of their future career options.

June 2014 17


18 June 2014

‫أفضل املوارد‬ ‫كونها الشركة الضخمة التي هي عليه‪ ،‬ال تستطيع‬ ‫املجدوعي أن تفعل كل ما تفعله دون القوى العاملة‬ ‫لديها‪ .‬اليوم يعمل قرابة ‪ 7‬آالف موظف لدى‬ ‫املجدوعي‪ ،‬أغلبهم مر عليهم عقود من الزمن وهم‬ ‫يعملون لديها‪ .‬خالد الغامدي‪ ،‬مدير العمليات لدى‬ ‫الشركة‪ ،‬يطلعنا على السر وراء ذلك‪.‬‬

‫عودة إلى عام ‪ ،1965‬حني بدأ الشيخ علي إبراهيم‬ ‫املجدوعي شركته للنقل البري بقرابة ثالثة أو أربعة‬ ‫موظفني فقط (مبا في ذلك هو نفسه)‪ .‬بعد مرور‬ ‫سنتني فقط‪ ،‬منا عدد العاملني لديه إلى مئتي عامل‬ ‫وموظف‪ .‬ألنها شركة للنقل البري‪ ،‬فإن غالبية القوى‬ ‫العاملة لديه كانت من السائقني‪ .‬اليوم‪ ،‬وبعد مرور‬ ‫أكثر من أربعة عقود‪ ،‬توظف الشركة قرابة ‪ 7‬آالف‬ ‫شخص‪.‬‬ ‫يؤكد خالد الغامدي‪ ،‬مدير العمليات في مجموعة‬ ‫شركات املجدوعي على هذا األمر قائال‪« :‬معظم‬ ‫السائقني في الشركة يعملون معنا منذ ‪ 38‬إلى ‪40‬‬ ‫سنة‪ .‬الثقافة السائدة في شركات املجدوعي واحدة‬ ‫وهي املساواة‪ .‬أنا ال أقول ذلك ألنني جزء من الشركة‬ ‫ولكنها احلقيقة‪ .‬الرئيس التنفيذي أو الرئيس أو السائق‬ ‫أو العامل‪ ،‬يلقى اجلميع عندنا معاملة متساوية»‪.‬‬ ‫ثم أردف‪ »:‬نحن نهتم بدرجة كبيرة بكل واحد‬ ‫منهم‪ ،‬فور أن يصبح الواحد منهم جزءا من‬ ‫املجدوعي‪ ،‬فهو يصبح فعليا فردا من العائلة املمتدة‪ .‬ال‬ ‫أذكر حتى مرة واحدة تأخرت فيها الرواتب أو احلوافز‪.‬‬ ‫هذا هو األمر الذي يبني الثقة حقا‪ .‬إنه ليس سرا على‬ ‫اإلطالق‪ ،‬بل هو الشكل الطبيعي للتفاعل اإلنساني؛‬ ‫حني تعطي شخصا ما يستحقه فأنت جتعله سعيدا‪،‬‬ ‫وحتصل منه في املقابل على الوالء والتفاني واإلنتاجية‬ ‫القصوى‪ .‬أعتقد أن هذا هو السبب الرئيسي والوحيد‬ ‫الذي يفسر ملاذا جنحنا في بقاء موظفينا معنا لفترات‬ ‫طويلة من الوقت»‪.‬‬ ‫التدريب مكون رئيسي في استراتيجية النمو الوظيفي‬ ‫املعتمد في املجدوعي‪ ،‬كما يشرح لنا خالد املزروعي‬ ‫بقوله‪« :‬يتم توفير التدريب من اليوم األول اللتحاق‬ ‫املوظف بالعمل‪ ،‬سواء كان سائقا أو مديرا‪ ،‬إذ عليه‬ ‫املرور عبر برامج توجيه محددة‪ .‬على السائقني اجلدد‬ ‫إنهاء برنامج تدريبي ميتد من ثالثة إلى أربعة أشهر‬ ‫للتعود على السيارة قبل أن يبدأ أيا منهم مهام وظيفته‬ ‫خلف عجلة القيادة»‪.‬‬ ‫‪June 2014 19‬‬

‫مع النمو الهائل الذي متر به وتستعد له الشركة‪ ،‬ال يزال‬ ‫احلصول على املوارد البشرية املوهوبة يشكل حتديا كبيرا‬ ‫للمجدوعي‪ ،‬ويعلق الغامدى على ذلك قائال‪« :‬إن‬ ‫سياسة احلكومة اإللزامية بسعودة الوظائف تشكل حتديا‬ ‫كبيرا ‪ -‬ليس فقط بالنسبة لنا ولكن جلميع الشركات‬ ‫العاملة في اململكة العربية السعودية‪ ،‬إذ يتعني علينا‬ ‫توظيف عدد معني من السعوديني لدينا بغض النظر عن‬ ‫مسمياتهم الوظيفية‪ .‬على الرغم من امتالكنا لنسبة‬ ‫أعلى من احلد األدنى الذي وضعته احلكومة‪ ،‬فال يزال‬ ‫التحدي قائما بينما نوسع أعمالنا ونحتاج إلى املزيد‬ ‫واملزيد من املوظفني‪ .‬ما هو أصعب من ذلك هو العثور‬ ‫على املواطنني السعوديني الذين يريدون أن يعملوا لدينا‬ ‫كسائقني»‪.‬‬ ‫حتدي كبير آخر وفقا للغامدي هو العثور على السعوديني‬ ‫املؤهلني وذوي اخلبرة في صناعة اخلدمات اللوجستية‬ ‫وسلسلة التوريد‪ .‬السبيل الوحيد للخروج من هذه‬ ‫املشكلة هو تدريب أشخاص‪ ،‬معظمهم من السعوديني‪،‬‬ ‫ليكونوا خبراء لوجستيني‪ ،‬وهي مهنة نادرة في البالد‪.‬‬ ‫ثم يستطرد الغامدي قائال‪« :‬لدينا معهد تعليمي‬ ‫خاص بنا منذ عام ‪ 2008‬حيث نقوم بتدريب اخلريجني‬ ‫اجلدد وغيرهم من الطالب ملدة ‪ 6-3‬أشهر أو سنة‬ ‫كاملة اعتمادا على اختيارهم‪ .‬بعدها نوفر لهم خيار‬ ‫العمل معنا أو لدى شركات أخرى‪ ،‬وهذا أيضا جزء من‬ ‫استراتيجية املسؤولية االجتماعية لشركتنا حيث أننا ال‬ ‫نطلب أي مقابل مالي من هؤالء الدارسني‪ .‬ليس هناك‬ ‫أي فائدة تعود علينا من إدارة هذا املعهد سوى األمل‬ ‫في حصولنا على بعض املوظفني السعوديني املؤهلني‬ ‫املتخرجني منه»‪.‬‬

‫معهد املجدوعي يعمل بشكل توافقي مع معهد تشارترد‬ ‫للوجستيات والنقل فضال عن جامعة ميشيغان‪« .‬‬ ‫نحن أيضا نعطي سائقينا شهادة ‪ ADR‬املعتمدة لنقل‬ ‫البضائع اخلطرة‪ .‬تكلف شهادة ‪ ADR‬حوالي ‪ 3‬آالف‬ ‫يورو أو ‪ 4‬آالف دوالر‪ ،‬ونحن نطلب منهم في املقابل‬ ‫‪ 500‬ريال فقط (تعادل ‪ 133‬دوالر أمريكي)‪.‬‬ ‫صناعة سلسلة التوريد واخلدمات اللوجستية ليست‬ ‫مجاال سهل العمل فيه‪ ،‬ومجموعة شركات املجدوعي‬ ‫تضمن مستقبلها من خالل تدريب عدد من املواطنني‬ ‫السعوديني لديها‪ .‬أنها ال تساعدهم وحسب‪ ،‬بل تهدف‬ ‫لتمكني اجليل القادم من السعوديني من اعتبار هذه‬ ‫الصناعة واحدة من اخليارات املهنية في املستقبل‪.‬‬


20 June 2014

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Recruitment for the logistics and supply chain industry is at an interesting stage. While there are various circles clearly visible, all industry experts seem to be waiting and watching to see where the market will go as things have only just started to change


ith the rising cost of living in the region especially in the UAE and Qatar, the entire working population has the same woes - no salary increases to match the rising rents and other living costs. What are employers doing about it? Not much. Until a few months ago, this was still an employer’s market. There were just too many people looking for too few jobs. Also, with the mistakes of the pre-recession era very fresh in employers’ memories, candidates were being put through multiple interviews and being tested on all their skill sets in order to get the absolute right person for the job. While some experts are quick to say that this is now an employee’s market, most others are hesitant to label it as such already. Things are definitely changing but to call it an employee’s market currently would not be accurate. Gary Keefe, Director EMEA at Oceanic Resources says,“Confidence appears to be increasing across the region with many companies looking to attract talent since almost all are planning for growth. One aspect that remains constant, though, is the

June 2014 21

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22 June 2014

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requirement for talented sales/commercial professionals. Having said that, equally constant is the shortage of available talent in this area.”Oceanic Resources International specialise in recruitment for the shipping, freight forwarding and logistics sector. The company opened in Dubai in 2001 with services including both retained and contingency search, thus servicing client requirements across a broad spectrum. From its Dubai office, the company covers the Middle East and Africa with successful placements made across both continents in the last year. Most recent being candidates placed in senior roles in the UAE, Saudi Arabia and Egypt with active searches under process in Kenya, Qatar and Kuwait. The increased cost of living, however, appears to be driving up candidate expectations.“There is also anecdotal evidence that some expatriates consider the costs too high to justify remaining in region,

“Retention of talent is cheaper that attracting talent and has a far greater positive impact on the growth of the business as stability always breeds confidence within.” Gary Keefe, Oceanic Resources. especially if they have children that require schooling,”continues Keefe. “Rising costs also mean lower margins, from an company’s standpoint,”says Andrew Hesketh, Director at Randstad MENA.“At the same time, finding good talent in operational positions remains to be a challenge for a while now.” Prakash Parab, Director, HR Solutions, Dulsco says,“The general upbeat business scenario coupled with the Expo 2020 win for Dubai has definitely seen an increase in demand for people with the right skills across categories. While the growth has started, we anticipate the momentum to increase as we move along, especially in

2015.”So there’s still a while till there might actually be changes to be seen.“Having said that,”continues Parab,“the market is definitely more stable and matured than it was five years back. We are seeing many new companies choosing UAE as their operations base and this is definitely leading to an increase in demand. “There is a heightened level of awareness on the concept of contract staffing and outsourcing, hence many companies are outsourcing their non-core roles. We expect to see at least a 30 per cent increase in demand over the next year in this category.”

Change will take time Keefe says,“We are aware of a number of companies conducting salary reviews but as yet it is too early to draw conclusions as to measures being taken.” Following the 2008 financial crisis, companies have focused more attention on their selection processes.“More attention is paid to a candidate’s track record and ability to deliver results. The market also appears to have changed from the feedback we receive, companies are looking to win business from competitors as opposed to further back in history when every company grew and the measure was simply how much. This change in environment highlighted a number of individuals in the sector that simply did not have the skills to perform in a more challenging environment. The improved screening of potential employees can only help raise the quality in the region,”he continues. Employers have been more demanding, only hiring when the right quality is identified however recently with the market appearing to improve across the board candidates are again increasing in confidence and in turn increasing their demands.“In the UAE it is too early to say if this is justified or simply a case of trying to ride the wave of positive sentiment with the award of Expo 2020,”says Keefe. Employee expectations seem to be rising with the gradually improving recruitment scene. Where a job and some stability would work a few years ago, other factors are starting to play a more prominent role like salary and other benefits.“For the last four

June 2014 23

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years I would have said that stability and long term career opportunity were the number one factors with any candidate considering an opportunity. Whilst those still prevail, overall package and benefits have again risen to the top due to the factors mentioned earlier,” adds Keefe.

Training and retaining Lack of talent and lack of training and development in new blood is a major problem with employers in the region. “Companies always require the experienced

24 June 2014

candidate however training and development in the region is not invested in anywhere near enough,”says Keefe.“Ultimately this focus on short term cost reduction wins for the time being, but this decision only ever results in increased costs later,”he says. “Companies need to focus on staff retention, training and development. Unfortunately, due to tough market competition, companies expect more from the candidates but spend less time investing in people due to the fierce nature of market,” comments Hesketh.

“As a company we have operated through a number of recessions in different global locations and the pattern remains the same - training and development budgets are immediately cut when market conditions are tough resulting in increased costs to attract staff as soon as market conditions improve. Employers have to start offering higher salaries in order to attract talent in a competitive market. Developing talent internally through a structured career plan and ongoing training where an employee can see progression and increase responsibility

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“Logistics is a unique industry. Bringing in the right talent for the right job will always remain a challenge. But we have been successful and Dulsco currently provides people across more than 15 categories – specifically for the logistics sector.” Pradeep Parab, Dulsco other personality development programmes. Technical training are tailor-made as per client requirements and are designed according to the the demands of the jobs. QHSE training includes regular sessions and communication on safety practices, quality aspects, and health and environment awareness among others.”

Nationality determines salary?

(not just a bigger title) increase retention and make it less likely that someone would leave the company for a minor increase in salary elsewhere. Retention of talent is cheaper that attracting talent and has a far greater positive impact on the growth of the business as stability always breeds confidence within,” adds Keefe. “Some of our FTSE100 and Fortune 500 clients have invested heavily in getting all their high potential staff with the right training in order to retain them. It is rare to see senior managers and directors not have a chartered

professional on their team with most of our clients,”says Hesketh. Parab adds,“The logistics industry employs a large number of unskilled and semi skilled workers. The biggest factor always is finding the right skillset match. This is where training plays a significant role in bridging the gap. We have in-house training sessions that are conducted on a variety of topics, including soft skills training, technical training and QHSE (Quality, Health, Safety and Environment) training. Soft skills training includes English language training and

While this is a topic most people acknowledge, it might not be prevalent in the logistics and supply chain industry. “I believe the opinion that nationality determines pay is incorrect,”says Keefe. “Our clients define package on the level of responsibility, experience and the value delivered to an organisation by the individual. A common mistake is when an individual looks at, for example, two Operations Managers of different nationalities. One earns AED 15k per month and one earns AED 40k per month. Most conclude the difference is based on nationality. “What is not considered is that one manages 15 staff and the other 70 staff with considerably different levels of budgetary responsibility and profit. Unfortunately this situation has not been helped by employers either, in the past employees were given titles to make them feel valued as opposed to financial reward. The result of this is many employees with titles that do not necessarily match their responsibility and who in turn blame the discrepancy on package on differing

June 2014 25

Cover story

nationality; as nobody likes to admit that they have an inflated title with no real responsibility. We have seen examples of departments that have three“Asst. Managers”looking after two “Co-Ordinators”and people with a“Sales Manager”business card who manage no staff. When asked who they report into we are told the“Senior Sales Manager”or“Sales Director”. I do not know of any company that will not target sales staff to at least three times the cost to company and then commission on revenue above. Therefore a Freight Sales professional delivering an average of AED 100k in GP will command AED 20k per month and one delivering AED 200k in GP will command AED 40k. I have never yet met an MD who will not reward appropriately to retain a performing employee or pay to attract such talent, regardless of their nationality. “And Sales and Business Development are positions most frequently sought by employers. For the Middle East there is also a consistent requirement for experienced Project Logistics staff, driven by the huge Oil and Energy sector and investment across the region in the physical infrastructure. Lay offs were consistent across the market however the Shipping Lines appeared to make more dramatic cut-backs,” Keefe says.

Hesketh adds,“We have seen an increase of between 15-17 per cent in housing allowances being provided by clients compared to the same time last year. We see Sr. Supply chain executives and Deputy managers being given family status as compared to historic data when family status was reserved for managers and directors.” Parab says,“The salary structure and benefits change according to the job category. At the blue-collar level, there is no salary parity. All nationalities get paid the same.”

Nationalisation Almost all the countries in the GCC and MENA region are increasing the drive to hire more nationals in the private sector. The logistics and supply chain industry being one of the backbones of the economy has also had to comply with the regulations. “This is very much a regional issue as opposed to an industry based issue,”says Keefe. Governments across the GCC have policies designed to develop and promote the hiring of nationals into the private sector. The emphasis varies from country to country, KSA has the largest population in the region with a significant requirement to

create employment opportunities for their population and all indications continue to point towards an emphasis on the hiring of nationals and increasing difficulty in employing ex pat workers. “UAE and Qatar have smaller populations with the quota system being more targeted to specific organisations based on their size or the industry sector. The final factor is the education and skills of anyone looking to enter this sector. Another major factor is the nationals’ expectations in terms of salary and level of responsibility. It is clear that in certain countries in the region the local culture has a history of valuing careers within the public sector which have historically offered stability as well as more attractive salaries and benefits. Feedback from our clients in general suggest that it is not possible to compete with the packages and benefits offered in the public sector which in turn makes it difficult to attract the talent. This is an issue which is clearly on the agenda for all governments across the region, how it will specifically affect the logistics sector in the long run remains to be seen.” Hesketh has a different viewpoint,“We are seeing some good results in the Saudi Nitaqat programme, although some of the policies put in place have been rigorous, the private sector has been quite receptive and we see a lot of talented nationals leading supply chain functions for the private sector.”

Verdict? Keefe says,“It is always a case of supply and demand. After it being an employers’ market from 2008 to 2011 and then relatively balanced for the last few years, I would cautiously suggest that the market is again starting to favour the employee but thankfully we are not as yet seeing some of the crazy and unjustified employment offers made to attract candidates in 2006/7!” Hesketh, however says,“Today is definitely an employees’ market, the skill gap is decreasing but there is still a long way to go in the Middle East. Getting the right people is not just an operational issue it is a strategic issue for most companies in MENA region.” And Parab has a completely different view point. He says,“The tussle between demand and supply is on-going and cyclical. Hence it may not be relevant to look at the market from this perspective.”

26 June 2014

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28 June 2014

‫موظفوك = مستقبلك‬ ‫دخل التوظيف للعمل في صناعة اخلدمات اللوجستية‬ ‫وسلسلة التوريد مرحلة مثيرة لالهتمام‪ .‬في حني أن‬ ‫هناك العديد من األمور اجلارية واضحة للعيان‪ ،‬يبدو‬ ‫أن كل خبراء الصناعة ينتظرون ويراقبون عن كثب‬ ‫ليروا أين ستذهب السوق‪ ،‬حيث إن األمور قد بدأت‬ ‫للتو فقط في التغير‪.‬‬ ‫غاري كيفي من شركة اوشينك ريسورسيز يرى أن‪:‬‬ ‫«االحتفاظ باملوهبة أقل تكلفة من جذب مواهب‬ ‫جديدة ألي شركة‪ ،‬كما وله تأثير إيجابي كبير‬ ‫على منو األعمال حيث تنجم الثقة الذاتية دائما من‬ ‫االستقرار»‪.‬‬ ‫أما براديب باراب من شركة دلسكو فيرى أن‪:‬‬ ‫«اخلدمات اللوجستية هي صناعة فريدة من نوعها‪.‬‬ ‫سيظل جلب املواهب املناسبة في هذه الصناعة حتديا‬ ‫كبيرا‪ .‬نحن في شركة دلسكو جنحنا في توفير العاملني‬ ‫املالئمني في أكثر من ‪ 15‬فئة ‪ -‬خصوصا لقطاع‬ ‫اخلدمات اللوجستية»‪.‬‬ ‫مع ارتفاع تكاليف املعيشة في املنطقة وخاصة في‬ ‫اإلمارات وقطر‪ ،‬يشترك جميع أفراد الطبقة العاملة‬ ‫في املشاكل ذاتها – لم حتدث أي زيادة في أي راتب‬ ‫لتتناسب مع ارتفاع اإليجارات وتكاليف املعيشة‬ ‫األخرى‪ .‬ما الذي يفعله أرباب العمل حيال ذلك؟‬ ‫ليس كثيرا‪ .‬حتى بضعة أشهر مضت‪ ،‬كان هذا السوق‬ ‫ملكا لصاحب العمل‪ .‬كان هناك الكثير جدا من‬ ‫الباحثني عن فرص عمل قليلة جدا‪ .‬أيضا‪ ،‬مع حضور‬ ‫أخطاء حقبة ما قبل الركود في أذهان أرباب العمل‪،‬‬ ‫كان على املتقدمني لوظيفة ما املرور على مقابالت‬ ‫متعددة الختبارهم على جميع املهارات اخلاصة بهم‬ ‫من أجل احلصول على املوظف األنسب لكل منصب‪.‬‬ ‫في حني يسارع بعض اخلبراء إلى الزعم بأن هذا هو‬ ‫سوق املوظف اآلن‪ ،‬يتردد اآلخرون في تسمية على هذا‬ ‫النحو‪ .‬األمور تتغير بالتأكيد لكن أن نسميها السوق‬ ‫املوظف فهذا غير دقيق حاليا ‪.‬‬ ‫غاري كيفي‪ ،‬مدير منطقة الشرق األوسط وشمال‬ ‫إفريقيا في شركة أوشنك ريسورز‪ ،‬يقول‪« :‬يبدو أن‬ ‫الثقة تتزايد في جميع أنحاء املنطقة حيث تتطلع‬ ‫العديد من الشركات إلى جذب املواهب ذلك‬ ‫ألن أغلب هذه الشركات تخطط للتوسع والنمو‪.‬‬ ‫أحد اجلوانب التي ال تزال مستمرة‪ ،‬رغم ذلك‪،‬‬ ‫‪June 2014 29‬‬

‫هو احلاجة إلى مسؤولي مبيعات محترفني‪ ،‬وهو‬ ‫أمر فيه نقص واضح في املنطقة»‪ .‬شركة أوشنك‬ ‫ريسورز الدولية تتخصص في التوظيف لقطاع‬ ‫النقل البحري والشحن واخلدمات اللوجستية‪.‬‬ ‫افتتحت الشركة في دبي في عام ‪ 2001‬لتقدم‬ ‫خدمات تشمل االحتفاظ باملواهب والبحث عنهم‬ ‫عند الطوارئ‪ ،‬وبالتالي تلبي مختلف متطلبات‬ ‫العمالء‪ .‬من مكتبها في دبي‪ ،‬تغطي الشركة‬ ‫منطقة الشرق األوسط وأفريقيا‪ ،‬وجنحت في تلبية‬ ‫متطلبات الكثير من العمالء عبر كل القارات في‬ ‫العام املاضي‪ .‬مؤخرا‪ ،‬يجري وضع معظم املرشحني‬ ‫للمناصب العليا في دولة اإلمارات العربية املتحدة‬ ‫واململكة العربية السعودية ومصر مع البحث‬ ‫النشيط في كينيا وقطر والكويت‪.‬‬

‫رغم ذلك فإن زيادة تكلفة املعيشة ترفع توقعات‬ ‫املرشحني‪ ،‬كما يخبرنا كيفي بقوله‪« :‬هناك أيضا أدلة‬ ‫على أن بعض املغتربني يرى تكاليف املعيشة عالية‬ ‫جدا لتبرير بقائه في املنطقة‪ ،‬خاصة إذا كان لديهم‬ ‫أطفال في مرحلة الدراسة»‪.‬‬ ‫أما أندرو هيسكيث‪ ،‬مدير شركة راندستاد في‬ ‫الشرق األوسط‪ ،‬فيرى أن‪« :‬ارتفاع التكاليف تعني‬ ‫أيضا هوامش ربح أقل‪ ،‬من وجهة نظر أي شركة‪،‬‬ ‫وفي الوقت نفسه‪ ،‬العثور على مواهب جيدة لشغل‬ ‫املناصب التنفيذية ال يزال يشكل حتديا اآلن»‪.‬‬ ‫براكاش باراب‪ ،‬مدير حلول املوارد البشرية في شركة‬ ‫دلسكو‪ ،‬يرى أن‪« :‬سيناريو األعمال املتفائل‪،‬‬ ‫باإلضافة إلى تأثير فوز دبي بتنظيم معرض اكسبو‬ ‫‪ 2020‬جعل هناك بالتأكيد زيادة في الطلب على‬ ‫ذوي املهارات املناسبة‪ .‬في حني أن النمو قد بدأ‬ ‫بالفعل‪ ،‬لكننا نتوقع له الزيادة واملزيد منها‪ ،‬خاصة‬ ‫في عام ‪ .2015‬رغم ذلك‪ ،‬يبقى سوق العمل‬ ‫اآلن أكثر استقرارا ونضجا مما كان عليه منذ خمس‬ ‫سنوات مضت‪ .‬نحن نرى العديد من الشركات‬ ‫اجلديدة تختار دولة اإلمارات العربية املتحدة كقاعدة‬ ‫عمليات لها‪ ،‬وهذا يؤدي بالتأكيد إلى زيادة في‬ ‫الطلب‪ .‬هناك مستوى عال من الوعي حول مفهوم‬ ‫التوظيف واالستعانة مبصادر خارجية‪ ،‬وبالتالي‬ ‫تستعني العديد من الشركات مبصادر خارجية للقيام‬ ‫بالوظائف غير األساسية‪ .‬نحن نتوقع ال يقل عن‬ ‫زيادة بنسبة ‪ %30‬في الطلب خالل العام املقبل»‪.‬‬

30 June 2014

Market indicators

Skills and salaries Everything is looking up from the expected growth of the economy to the cost of living. The only thing which isn’t looking up though are salaries. Scott Wilson, Senior Recruitment Consultant with Hays UAE gives his insights on hiring and salaries The market The substantial swell in the UAE economy has breathed life back into many industries in the region; taking advantage of the ‘buyer’s market’ construction has revived, transport networks are under development, and customer requests are at a high. “As a result of the increased commercial activity we’re seeing a flourish of supply chain vacancies coming in,”says Scott Wilson, Senior Recruitment Consultant, for Hays UAE. The ripple of growth has had a notably positive effect on the employment landscape in the UAE, Saudi Arabia and Qatar in particular. “The 2008 crash taught many organisations a hard lesson; this time around the boom is being treated with a lot more care,”continues. The recruitment of strategically minded professionals in planning and procurement roles has increased, in order to support and lead growth in a secure manner.“In particular Senior Demand Planners who can demonstrate strong experience in accurate forecasts are well sought after.”

Salaries “It has been an interesting year as far as salaries are concerned. Like any booming country the cost of living has increased, June 2014 31

Market indicators

especially demonstrated in rent prices; however employers are being cautious to increase salaries to reflect the rise.”Supply chain and procurement salaries within the Gulf region have remained relatively static in the last few years (naturally a few companies are exempt from this trend). Job Title

Range (AED)

Typical (AED)

Logistics Manager



Sales Manager



GM / Country Manager



Air Freight Manager



Transport Manager



Operations Manager



Commercial Manager



Shipping Manager



Warehouse Manager



Demand Planner



Supply Planner



Buyer (Raw Material)



Sourcing Manager



Supply Chain Manager



Purchasing Manager



**Monthly salary in the UAE – Currency in Arab Emirate Dirhams

“Not very long ago, Saudi Arabia used to be more lucrative for candidates, benefitting from larger salaries and a lower cost of living. Salary levels are now evening out across the Gulf regions, meaning supply chain professionals can no longer expect the perks Saudi used to offer. Currently Oil and Gas, and Pharmaceutical are industries that are paying the best.”

For employers in a candidate rich market, they can afford to take their time to ensure they are hiring right.“We have seen the usual two stage interview increase to three or four. It is not unusual for the applicant to meet with numerous people at the interview stage: HR, Line Managers, Heads of Departments and Stakeholders. For employers, having to sift through a large number of potential candidates can be daunting, so by using a recruitment agency specialising in Supply Chain, employers not only get the candidate most appropriate but also an idea on the market conditions, geography of talent, and current salaries.”

Skills There are a large number of quality candidates currently flooding the market, giving another reason for stagnant salaries. “Holding an APICS Certified, Supply Chain Professional (CSCP) or CIPS certificate will certainly set a jobseeker apart in the competitive market,” says Wilson. Middle Eastern experience continues to be advantageous, and Saudisation, the national policy to encourage employment of Saudi nationals is picking up momentum.

32 June 2014

and delivery times. Organisations with the right experienced staff in the procurement department can really help optimise cost savings on a number of categories across the business and therefore can be a vital asset to any organisation.” The FMCG and Pharma industries in particular are still a growing presence within Dubai, with many such multinational companies having their regional head quarters within the Emirate. The majority of the world’s largest logistics companies (3PLs) are also benefiting because of the increased demand for warehousing in a number of industries, particularly within the building materials sector.

In demand Currently within the Supply Scott Wilson, Senior Recruitment Chain sector Procurement Consultant, for Hays UAE has been and Sourcing vacancies working in the specialist recruitment are at an all-time industry for the Procurement & Top 3 roles in high.“Companies Supply Chain Division since 2010. demand: are looking to bring His knowledge of procurement, Demand Planner on board the right logistics and manufacturing Sourcing Manager suppliers who can operations awards Scott with Supply Chain/ offer them the best unique insight into the market and Procurement Manager rate, service levels recruitment.


Tapping social media to power your

Your social media presence

supply chain

can help build a community of like-minded colleagues with a high recall value of company activities, initiatives and corporate measures. It also builds employee engagement and empowerment. By Deborah Catalano Ruriani


ocial media provides a platform for companies to share knowledge and opinions, and broadcast information to an audience of followers. It also generates valuable data about how your customers think, shop, vote, and spend their leisure time. Many companies have jumped into social media to improve supply chain operations. Cindi Hane, VP Technical Product Management, and Product Manager for logistics at supply chain technology provider Elemica, offers these tips for putting social media to work for your supply chain.

JUNE 2014 33

Social preSence

Subscribe. Get to know the most popular channels: Facebook, LinkedIn, Twitter, and YouTube. These platforms provide access to a user community relevant to your business and customers. Employ filters. Set preferences to fine-tune your feeds and minimise social media fatigue. Reviewing tweets and status updates should not cause stress. Explore and observe. Determine which platforms provide the best, most applicable information for your company. Look for quantifiable supply chain information from expert sources. Figure out the contributors’ motives - are they cleverly advertising something, or are they truly seeking a community with which to collaborate? Advertising has its place, but you should recognise it for what it is.

Identify opportunities. Determine which supply chain processes would benefit from better collaboration through an unstructured data channel. You can proactively check the reputation of vendors and potential vendors with social network users.

Share relevant news. Broadcast information that might help logistics partners be more proactive or make better decisions. For example, share news about port disruptions. This allows shippers and carriers to better communicate transit delays to the end user.

34 June 2014

Be prepared to evolve. Some of your efforts will be fruitless. Don’t be afraid to delay or abandon some outlets or initiatives - there are plenty of others to try. Contribute often. Share your lessons and best practices, especially with your trading partner community. Using social media can make your business proactive instead of reactive; better able to respond to market volatility; and flexible to meet the specific needs of each customer.

Empower your staff. Don’t dictate a social media strategy to your supply chain operations staff. Let one evolve naturally as they use the outlets to get to better know your customers and partners. They will be able to increase effectiveness and customer retention, and promote cross-selling opportunities. Enlist help from others. Find the people in your organisation who are comfortable with social networking, then ask them to help identify some creative uses. It is a perfect way to increase employee engagement and promote cross-training. Build better relationships. Use social media in your supply chain network to discover, create, and build new or more robust relationships faster. In addition to being an efficient method for broad collaboration, social media provides the ability to quickly analyse the marketplace and assess partner performance. You’ll gain insights you can’t get anywhere else.

June 2014 35

Business report

The MIddle easT’s Many

logIsTIcs hubs By John Manners-Bell, Transport Intelligence

The region is undergoing massive logistics’ upgrades and with severe competition from its neighbours, the Middle East is transforming into a complete worldwide hub for all modes of transport. But being the centre of the world comes with a huge price tag


n recent years vast sums of money have been invested in transport infrastructure by governments right across the Middle East in an attempt to diversify their oil and gas dependent economies. The most recent example is the King Abdullah Economic City Port in Saudi Arabia, which began operations in

June 2014 37

January 2014. The port, up the coast from Jeddah in the Red Sea, has a capacity of 1.3 million TEUs and this is expected to rise to four million TEUs by 2016, seven million by 2018 and ultimately 20 million. The developers, Emaar Economic City, hope that the port will turn into a global hub, in much the same way as Dubai or Abu Dhabi in the Gulf. As 25 per cent of the world’s trade passes through the Red Sea on the way to the Suez Canal, there may be some justification for this aspiration. Other multimodal hub developments in the region include: US$14bn development of the port of Sohar, Oman in conjunction with a new airport at Muscat. Doha seaport, Qatar; expected capacity two million TEUs by 2015 working alongside cargo operations at Doha’s new Hamad International Airport. In the UAE, DP World’s new terminal in Jebel Ali which will add a further four million TEU, at the same time as the development of the Dubai World Central Al Maktoum International Airport (DWC) and the expansion of Dubai International Airport (DXB). Also in the UAE, Khalifa Bin Salman Port’s development has been completed adjacent to the Kizad trade zone and Abu Dhabi International Airport. The development of so many logistics

38 June 2014

Business report

projects is in itself not without risk, as the strategy relies on the continued growth of freight volumes to fill the new capacity. However, although volumes are growing, their development could be described as patchy. DP World’s port volumes in the UAE rose by 2.7 per cent. Middle Eastern air cargo

carriers continued their strong growth, expanding FTKs by 12.8 per cent (IATA). In Oman, the volume of cargo handled by Port of Salalah grew by 6.5 per cent and that of Port Sultan Qaboos by 5.5 per cent. Cargo volumes reached record levels at Dubai International Airport, up 6.8 per cent on the year before. Abu Dhabi’s airport saw cargo surge by almost a quarter. Doha’s air cargo grew by 4.7 per cent. Concerns are growing even within the region itself. Many of the forecasts on which development plans were based were made during the mid–2000s when global trade was booming. Now, even the Qatari authorities believe that Phase 1 of the Doha seaport project will open with just half its capacity being used. To utilise all its planned capacity by 2030, direct volumes would have to grow at 15 per cent a year, highly unlikely in the present economic environment. There is also the concern that the rise of the mega–hubs, such as Dubai and Abu Dhabi, will come at the expense of smaller port/airport locations such as Fujairah and Sharjah. In this respect the growth figures reported above may not wholly be ‘new’ business created by attracting volumes to the region as a whole or organically created, but rather a result of cannibalisation. Will this momentum be enough to support the huge capacity which is being created for sea and air freight?

June 2014 39

Business report

It may be that the Middle East can only support two global hubs, which at this moment would seem to be Dubai and Abu Dhabi, although multiple regional sub–hubs could arise. As well as that there would be a

40 June 2014

number of tertiary locations which serve as hubs for domestic markets. There is no doubt that in the short term, the Middle East will benefit from improving economic conditions in Europe as well

as solid growth in domestic economies. Investment has also helped the growth, especially in the Gulf countries such as Saudi Arabia where GDP grew at 3.6 per cent in 2013, with an expected growth of 4.4 per

Business report

cent in 2014. However, what will be just as important for the long term is the rise of the Middle East (in particular the GCC economies) as a logistics hub for Africa, Central Asia and the Indian sub–continent.

The Middle East – The world’s future logistics hub The Middle East has acted as a refuelling point for air freight carriers and shipping lines moving between Europe and Asia for many years. It was therefore only a small step to create hub and spoke operations in this region in order to maximise capacity and improve operational efficiencies. Now just as important as its geographical location are a range of other advantages. These include: modern facilities, relative lack of corruption, free trade zones, open sky policies, easy customs procedures. The development of the now popular sea-to-air product (consignments which start off as sea freight are offloaded in the Middle East and then shipped by air to the final destination, mainly in Europe) also came about due to the Gulf countries’ advantage in transport and logistics assets. A lack of air cargo capacity out of India meant that shippers could more easily move goods by sea to a major port such as Dubai, and then air freight the goods to Europe. This worked due to the imbalance of air cargo flows into the Middle East which left air carriers looking for back loads to Europe. As a result transit

time can be reduced by a week or more. As an illustration of the importance of the multimodal approach, Dubai International has 56 truck docks for import, export and perishable cargo, with seven dedicated to sea-to-air traffic. Both Dubai’s airports are integrated with the main sea ports, Port Rashid or Jebel Ali, and movements of containers can take just six hours. The transfers can take place under bond. An increasing number of manufacturers have decided to base their distribution facilities at hubs such as the Jebel Ali Free Zone in Dubai, from where they can more efficiently supply growing consumer markets across the region. For example, Japanese manufacturer Canon uses this location as its hub to supply 45 markets in the Africa and Middle East region. Ninety five per cent of its product is transported to the hub by sea where value added logistics services such as localisation and kitting can take place. Chinese high tech manufacturer Huawei has also recently decided to use Dubai as its regional hub. Its location in the Jebel Ali Free Trade Zone will shorten delivery time by about 30 days for its sea freight shipments. The manufacturer’s logistics strategy for the region is typical. The hub will initially supply the Gulf countries and Pakistan but will then be expanded to serve Kenya, Tanzania and the rest of Africa. One of the reasons why companies are increasingly basing their distribution

operations in the Gulf is the businessfriendly attitude which has been developed. This was borne out by the 2014 Agility Emerging Market Logistics Index. The Market Compatibility portion of the Index, which measures whether conditions are favourable for business and trade, was dominated by Gulf countries Qatar, UAE, Oman, Saudi Arabia and Kuwait, along with nearby Jordan. ‘Connectedness’ – that is, the quality of transport infrastructure and range of locations served by shipping lines - is also critical to the development of hubs and the region also performs impressively against these criteria. The UAE, Oman, Saudi Arabia, Bahrain and Qatar all appear in the top 10 countries of the ranking.

Too much capacity? However will the momentum that has been growing in the region be enough to support the huge capacity which is being created for sea and air freight? At present the major sea freight hubs in the region have a capacity of around 40m TEU per year. However, if development plans are to be believed, this could rise in the next 10-15 years to closer to 100m TEU. Assuming that ports are at full capacity at the moment (which they are not) an annual increase of freight volumes of over eight per cent throughout this period would be required. Likewise the major airports in the region have a capacity of around eight

June 2014 41

Business report

million tonnes per year. This is set to rise to 14m tonnes by 2020 – an increase of three quarters, or a compound annual growth figure of close to 10 per cent. Some analysts believe that the region can only support two global hubs, although multiple sub-hubs could arise. If this is the case then the obvious candidates for global hub status are Dubai and Abu Dhabi. Jebel Ali Port is by far the largest in the region, almost three times the size of its nearest competitor, Jeddah. It is integrated with Dubai International Airport (DXB) and the smaller, more recent development, Dubai World Central Al Maktoum International. The latter has the stated aim of expanding to 12m tonnes of cargo capacity per year, although it is unclear when it would like to achieve this target by. At present its capacity is 600,000 tonnes. Khalifa Port in Abu Dhabi is also under development, with the impressive target of 15m TEUs by 2030. It is part of a wider development – Khalifa Industrial Zone Abu Dhabi (KIZAD), which includes manufacturing and logistics facilities. The airport in Abu Dhabi, the home of Etihad, is also expanding, with plans to grow from one million tonnes per year to 2.5m, and Dubai’s airports are also situated close by. In terms of ambitions, the only other contender in this league is the port development on the Red Sea at the King Abdullah Economic City. The port has plans to expand to 20m TEUs per year by 2018. As well as planning on becoming a major future transhipment port, it is also developing port centric logistics capabilities. Toys’R’Us became one of the first companies to establish facilities on the site to distribute goods throughout Saudi Arabia. However the port is located 100 km north of Jeddah airport, which will make integration for seaair volumes more challenging.

Extending hub scope Middle East hubs have been able to extend their scope far beyond their own region, filling a gap in the market created by Africa, Central Asia, India and Pakistan’s own lack of transport infrastructure and paucity of services. This means that as well as acting as a gateway for goods coming from Asia, Europe or North America, hubs can also

42 June 2014

be used for the distribution of goods on an intra-regional basis. Point-to-point transport is often made difficult by congestion, corruption and cost, issues which can be circumvented by using one of the more sophisticated Middle Eastern hubs. Middle Eastern carriers have benefited from this by capturing a significant share of the increase in the volumes out of these regions. In addition to Africa, the Middle East has geographic proximity to a range of fast growing markets in the Commonwealth of Independent States (such as Kazakhstan, Turkmenistan and Uzbekistan) which have not yet developed their transport infrastructure. The alternative of using poor road and rail links through Western Europe adds considerable time and cost to the supply chain. As manufacturers increasingly develop their distribution strategies to include secondary markets in the emerging regions, the Middle East will continue to enhance its position as a major and reliable transport hub.

Domestic demand creates logistics momentum Investment in industrial projects, infrastructure as well as the creation of a vibrant Middle Class, have provided significant momentum to the domestic logistics industry. According to the Agility Emerging Markets Logistics Index, Saudi Arabia, the Middle East’s largest economy, is third behind only China and Brazil in terms of prospects. Among the world’s largest emerging economies, no country has improved its position as much as Saudi Arabia, which was in ninth position in the Index rankings five years ago. Saudi Arabia is in the midst of unprecedented public spending with projects that include building and expanding airports, roads, ports, universities, industrial complexes and other infrastructure. Saudi Arabia’s Gulf neighbour, the United Arab Emirates, comes in at No. 6 in the Index. The Market Compatibility portion of the Index, which measures whether conditions are favourable for business and trade, was dominated by Gulf countries Qatar, UAE, Oman, Saudi Arabia and Kuwait, along with nearby Jordan. Attracting foreign direct investment has been an

Business report

June 2014 43

important factor in the development of the countries in this region as they seek to diversify their economies away from dependency on oil and gas.

Infrastructure investment The investment in infrastructure projects across the region is vast. From the King Abdullah Economic City on the Red Sea in Saudi Arabia to the Qatar-Bahrain Causeway in the Gulf, billions of dollars are being spent on a range of oil and gas, industrial, healthcare, transportation and hotel/leisure projects. In the Gulf, although the construction market was impacted by Dubai’s financial woes, especially in the residential and hotel sectors, there are plenty of other major projects continuing. Abu Dhabi, unaffected by the crisis not least because of its large natural resources, is one of the key areas for building work. Construction has also continued apace in other countries where government investment has been the driving force, particularly Saudi Arabia and Kuwait. Each project represents a considerable opportunity in terms of logistics and, due to the long term nature of many of these projects, they offer a sustained revenue stream for many years. This is not to mention the on-going logistics requirements for existing oil, gas and chemical operations. After initial construction these installations need to be supplied with spare parts, pipes and oversized parts that often require special handling. There is also a need for procurement and purchasing, origin logistics, customs clearance, freight forwarding and local transportation.

Retail developments key to logistics The development of the retailing sector is absolutely critical to the future of logistics in the region. Global brands demand a great deal of sophistication in the marketing of their products. The added layers of logistics complexity require the development of a supply-side capable of undertaking value adding services, for example in the pre-retail preparation of goods. The UAE stands out as the key market for Western brands, and is already fully saturated, according to AT Kearney’s Global Retail Development Index. All the same, Abu Dhabi is set to expand its mall space

44 June 2014

by almost 50 per cent by 2015 and the retail market in the UAE is expected to grow by 33 per cent between 2012 and 2015. The UAE also has the highest fashion clothing sales per capita in the developing world and has the highest number of international retailers present in the market. Kuwait ranked third in the index, with Saudi Arabia in fifth. Importantly, contracts are being signed with local joint venture partners to create retailing networks across the whole region which will increase the penetration of the international retailers significantly in the years to come. The Middle East, in line with developments in western markets, is also

experiencing a transition from fragmented local high street retailing to supermarket formats. It is not just at the top end of the market that changes are occurring. Supermarkets now account for the greatest share of retail fresh, chilled and frozen food sales in Saudi Arabia. Although still relatively underdeveloped, the growth of supermarkets and hypermarkets is expected to accelerate.

Cold Chain in demand Across the region as a whole, the increasing value of food and pharma supply chains has created the demand for temperature controlled services and property. There has been a real boom in construction of

Business report

Out-sourcing opportunities There are considerable opportunities for logistics out-sourcing in the Middle East. At present it is estimated that rates are around 12 per cent, compared with 25-30 per cent in Western Europe. This means that many efficiencies which have been introduced in developed countries are still lacking in the Middle East, even in many of the more sophisticated markets. Government has a major role to play in the promotion of out-sourcing. In many countries the practice is actively discouraged by ‘agency’ laws or by regulations which favour in-house operations. However as well as liberalising markets, governments can also encourage state-owned companies, which often have large transport and warehousing divisions, to privatise them or at least bring in private sector partners. This would have other benefits. High levels of fragmentation exist in the industry across the region, with few major logistics players, and many of these being owned by the global groups. Carving out logistics companies from SOEs would provide additional competition at the higher end of the market. To the same end, governments are encouraging state-owned companies in the transport sector to become more active in the market. Post offices, airlines, shipping lines are all leveraging their position in these growth markets to become more competitive on a global basis.


refrigerated warehousing, particularly Dubai as well as Oman, Kuwait and Saudi Arabia. In general, investors think big, which means that a capacity of 50,000 pallet positions is considered more or less normal. In addition to this, of course, there is a very important transit market led by airlines such as Emirates. Express carriers have been at the forefront of introducing cold chain services. As long ago as 2005, DHL announced the launch of a temperature controlled express delivery service in Saudi Arabia. The service combines express distribution with guaranteed security and validated temperature controlled packaging, transport and distribution.

Improvements in cold chain logistics are also impacting on food retailing. The Middle East region contains a number of rapidly growing retail markets for a wide range of consumer goods, mainly imported. The high level of imports is largely due to the small indigenous manufacturing base in the region and, particularly in the oil rich countries, the desire for western convenient, frozen and chilled, foods. An example of this trend was the announcement in late 2013 by global consumer goods retailer, Spinneys, that it was to build a AED55 million (US$15m) dedicated cold storage facility in the logistics cluster of the Khalifa Industrial Zone Abu Dhabi (Kizad) in Abu Dhabi.

Whether as an international transit hub or as a consumer market, the Middle East is a region which cannot be ignored by global manufacturers, retailers or logistics companies. It is certainly true that the levels of opportunity are somewhat tempered by geo-political risks, not least the role of Iran and the potential contagion of Syria’s instability. Even Qatar’s relations with fellow GCC countries have recently deteriorated. However the major economies such as Saudi Arabia and the UAE have vast wealth, good security, increasingly robust transport infrastructure and a desire to develop their economies to Western standards. The implications of this for the logistics industry, both global and domestic, should not be underestimated.

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Guest Column

Making the cut In what detail are students studying logistics as a curriculum being readied to face the real world of the industry in the region? Dr Balan Sundarakani, Programme Director, MS Logistics at University of Wollongong, Dubai, explains Having been involved as a programme director for the past four years, there is a definite steady growth in the demand and intake for the Master of Science in Logistics degree. We have a good mix of students from most of the Middle Eastern countries, the Indian subcontinent and a few East Asian countries studying in this programme. Globally the importance of logistics in terms of providing sustainable cost effective services has been witnessed across all sectors of manufacturing and services. The demand for logistics is slowly picking up in some of the noncommercial sectors like humanitarian, healthcare and military as compared to commercial sectors like oil and gas manufacturing, port operations, FMCG and warehouse operations in the past. We offer Supply Chain Management, Logistics Systems Management, Strategic Supply Chain, Procurement and Inventory Management courses among others. These are comprehensive enough for students to get a sound understanding of supply chain theory and practice and its applications in the real world. Our students get to understand current issues, emerging trends and the evolution of these concepts with local, regional and international case studies. Graduates are able to open new ideas, apply creativity, research, logical and critical thinking skills and respond effectively. Graduates are able to understand the use of supply chain technologies like RFID, EDI, VMI, WMS, TMS, ERP, XML etc., for their supply chain and logistics applications. We periodically update our subject outline in line with the industry

demands that comply with the Commission for Academic Accreditation (CAA) requirements in the UAE and Australia’s regulatory and quality agency for higher education – the Tertiary Education Quality and Standards Agency (TEQSA). We have an equal number of working students and full time students in our MSL programme. However, this proportion varies from semester to semester. The degree we offer can normally be completed in four semesters in length. Generally, this degree is completed in a year and a half (based on three semesters per year, and two subjects per semester). Candidates Both our faculty are offered the flexibility to adjust their study and students load (over/under load) have frequently to accommodate their individual circumstances participated in and career objectives. industry forums, Full time students on a university sponsored webinars, visa must take at conferences and least two subjects industry gatherings. per semester. There are some internship opportunities existing for full time cohorts to pursue their career opportunities. We have a strong working relationship with organisations like the Dubai Government, Dubai Customs,

Dubai Trade and multinational companies like GE, DP World, DAMCO, DHL, Al-Futtaim logistics, Sanofi Aventis etc. Generally there is a gap between the courses offered at university and that of real life experience in industries worldwide. This is partially due to the speed at which the industry grows coupled with lapses in the speed at which academia keeps up with these growth changes. This can easily be bridged either at the institutional level or the individual level, depending on how well the university/individual works with the industries. At UOWD, we work closely with industry partners, regularly update skills provided with industry requirements. Both our faculty and students have frequently participated in industry forums, webinars, conferences and industry gatherings. A considerable size of our students are already employed. We also discuss industry-related issues in our classrooms. Our Knowledge INEX initiative is one in which we invite industry leaders to deliver guest lectures. This initiative, introduced three years ago, has been highly acclaimed and appreciated by our students. In line with expected demand, we are planning to expand our industry and academic collaboration locally, regionally and internationally. We have an excellent logistics research centre established in Wollongong, Australia and plans are underway to expand the research centre in Dubai as well in the future. This research centre will cater to the needs of the logistics community, governments and private industries in this part of the world.

June 2014 47



economic clusters By creating ripe environments


lobally, economic clusters (EC) are abundant in a variety of forms: special economic zone, industrial zone, free zone, economic city, and technology cluster. Yet, too many ECs have started without a clear strategy to meet their economic development objectives. In many cases, world-class infrastructure and business and industrial facilities have been built and tenants have filled the space to different degrees, taking advantage of favorable business conditions and local

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for business, academia, and innovation, these emerging economic clusters have jump-started industries and accelerated economic development in mature and developing markets worldwide. AT Kearney reports

market demand. However, to become true incubators of economic development many ECs must clearly define their playing field and truly differentiate themselves.

Key considerations include: Focus on sectors and parts of the value chain aligned with the long-term local or regional economic development agenda. Beyond defining the sectors of focus, the efforts should be concentrated in parts of the value chain of the sector where the country or region has built, or can build, a


competitive advantage and sustain it in the foreseeable future. Orchestrate the right ecosystem to enable sector and value chain growth. Clusters should provide or facilitate the necessary cluster“enablers,” secure government endorsements, and instill the right governance with a business model that manages an economic development mandate and commercial sustainability objectives. Create a sustainable link to the host country economy. This ensures that the benefits of the EC permeate beyond the

boundaries of the EC, that local talent and technology is developed, and that local small and medium-sized enterprises (SMEs) and startups are promoted. After all, an incubator would not be viable without direct correlation with overall GDP growth and sustainability of the competitiveness it creates. For the incubator to flourish, it must function as an ecosystem, bringing together and balancing various enablers to access a market. These enablers include a focused strategy, sound facilities and infrastructure, favorable regulations and ease of doing

business, talent and technology development, access to capital and financing, and promotion of SMEs and entrepreneurs (see figure 1). In mature markets, these enablers are provided by numerous stakeholders, both public and private. In developing markets, where these enablers are absent to different degrees, the EC serves as a“one-stop shop,” filling the void by providing some or all of the missing enablers for companies and investors. Most successful ECs consistently deliver superior performance across all ecosystem enablers.

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Figure 1

Six ecosystem enablers facilitate access to local, regional, and global markets

Note: SMEs are small and medium-sized enterprises. Source: A.T. Kearney analysis

Examples of successful ECs can be found across industry sectors and geographic regions. These include aerospace in Brazil’s Embraer Cluster, biomedical applications in Singapore’s Biopolis, shared services in Ireland’s Shannon Free Zone, information and communication technology (ICT) in Egypt’s Smart Village, and petrochemicals

and steel products at the Jubail and Yanbu Industrial Cities. ECs also play a role in developed economies. In the United States, for example, Michigan’s Economic Development Corporation helped transform the automotive industry in the state by developing high-tech and clean-tech emerging skills and capabilities.

EC supply and demand imbalances and challenges Many ECs exist in the developed world Germany alone has more than 190. The booming economy prior to the 2008–2009 financial crisis led to an increase in ECs, particularly in the CHIMEA region (China, India, Middle East, and Africa). Indeed, the CHIMEA region has more than 300 ECs, with more than 100 in China, 100 in India, another 85 in the Gulf Cooperation Council (GCC) countries and the Levant by 2015, and more than 50 free zones in Africa. Post crisis, ECs have had mixed success, because owners - and to some degree operators - have often failed to use the right planning horizon for achieving economic development and commercial returns. The path and time horizon for achieving both economic development and business goals is not clearly laid out in many ECs’ operating models (see figure 2). Several ECs have completed their infrastructure development and are seeking tenants, but they are still unable to claim a true impact on economic development. One reason for this situation is the competing priorities of economic development and profitability. Real estate is profit-driven and akin to the private sector, while economic development is measured by GDP, FDI, and employment, and akin to the government’s role. In a bestpractice model, real estate is best left to real

Figure 3

Global foreign direct investment: slow recovery, but unknown future

Source: United Nations Conference on Trade and Development; A.T. Kearney analysis

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Figure 2

The most successful ECs have clear paths for gradual achievement of both economic and financial goals

clusters and provide platforms for investors to access their markets, but are not owners and operators of infrastructure or facilities. On the other hand, the limited availability (or flow) of investment following the global economic crisis is making it more difficult for ECs to reach their potential and end goal. Indeed, the rising number of ECs worldwide has increased competition for a pool of foreign investment, which has shrunk due to post-crisis risk aversion (see figure 3). Foreign and domestic investment is the principal engine to make ECs commercially viable and to develop the necessary capabilities within the sector in the form of human capital, technology development or transfer, and efficient use of natural resources. In the midterm, we expect a renewed flow of global investments. There is a positive bias for future foreign direct investment (FDI) in the minds of executives, according to A.T. Kearney studies. Countries must prepare to capitalize on future growth and define how to structure and leverage ECs to achieve their economic development aspirations.

Economic cluster qualifiers and differentiators

1 Directly conflicting objectives of economic development versus profitability prevent achieving the desired targets quickly.

2 After maximizing business benefits, the focus to meet economic objectives can be increased (typically the case with private companies).

3 After maximizing economic benefits, actions to maximize the business benefit can be increased (typically the case with publicly owned companies). Source: A.T. Kearney analysis

estate developers, under a clear mandate, with services and quality often regulated. The separation between real estate development and economic development is a requirement. Regardless of the model, a clear path and investment horizon with

reasonable return expectations is necessary. Notable examples of this separation are Aerospace Valley in France and the Michigan Economic Development Corporation in the United States. Both orchestrate programmes to promote investment in explicit industry

A.T. Kearney studied and worked with ECs globally to form a perspective on the qualifying and differentiating elements that make ECs sustainable. Our research identified the qualifying ecosystem enablers, which allow an EC to enter the field of competition, and differentiating ecosystem enablers, which allow ECs to create a truly unique value proposition and flourish. Next-generation economic clusters (NECs) are the select group of economic clusters that can claim differentiation by outperforming in all enablers. Top-quartile NECs score highest across qualifying and differentiating enablers, while lower-quartile zones only perform well in qualifying enablers, showing consistent limitations. Figure 4 illustrates the performance of the ECs in our study across the six ecosystem enablers. The findings reveal significant distance between the leaders and the laggards with regard to four enablers: focused strategy, access to capital and financing, development of talent and technology, and promotion of SMEs and entrepreneurship.

June 2014 51

Qualifying ecosystem enablers Two ecosystem enablers are must-haves for any economic cluster. Facilities and infrastructure. Access to airports, ports, road networks and, in some cases, railroads, is the minimum common denominator of ECs. Likewise, it is a must to offer pre-built or built-to-suit investmentgrade real estate. Many ECs around the world have mastered this enabler. In A.T. Kearney’s analysis, second-, third-, and fourth-quartile ECs score high in this area. This indicates that few can stand out because of their real estate offerings and access to transport, telecom, or social infrastructure alone. However, some differentiation can come from the breadth and depth of the social infrastructure provided in the cluster. Particularly in developed markets, offering differentiated children’s day care, clinics, banks, and other basic necessity outfits will influence the decision of a company to relocate to a specific cluster.

Figure 4

Geographic and industry spread of special economic clusters studied (% of sample)

Note: Sample does not represent market share distribution. Source: A.T. Kearney analysis

Favourable regulations and ease of doing business. Access to local markets, ease of doing business, tax breaks, and ease of employee mobility are standard offerings sought by international and global companies seeking to set up operations. As a result, one-stop shops are an industry standard and are hardly a differentiator. Selfregulation of free zones that offer tax breaks or allow foreign ownership in countries that otherwise do not allow it is a differentiator only in select cases. In Abu Dhabi, for example, where free zones that allow foreign ownership are only nascent, this status is currently a differentiator. However, as soon as it becomes the norm, or when the country allows more foreign ownership, this advantage becomes an industry standard. Clusters that score highest in this area are those that allow a combination of foreign ownership, enforce intellectual property protection laws and contracts, instill clear rules to access and operate in the local market, and have clear employment regulations in place that are favorable to ECs’ citizens. Case in point: The Dubai International Financial Center (DIFC) created specialized laws, regulations, and

52 June 2014


Figure 5

Economic clusters excel in the differentiating enablers

Note: SMEs are small and medium-sized enterprises. Source: A.T. Kearney analysis

enforcement mechanisms to forge an atmosphere of trust. This increases the inflow of foreign direct investments and caters to financial services firms. The DIFC even established a court system based on international best practices to increase the confidence of international firms to invest in the cluster.

Differentiating ecosystem enablers Beyond the must-have enablers, the following four enablers will go a long way to differentiate the leading ECs. Focused sector strategy. A focused strategy is not only necessary to define the key business sectors but also to identify their respective value chain focus areas and development phases. Development phases are crucial as there are various prerequisites needed to convince industry leaders that an emerging location is adequate to house their local or regional operations. Furthermore, a focused strategy with development phases forces EC operators to collaborate regionally and globally, rather than just locally. Figure 5 illustrates the typical development cycle for a manufacturing cluster. The prerequisites shown in the figure have been compiled from interviews with executives across the aerospace, automotive, electrical equipment,

software, and IT hardware industries. The conclusion is that a value chain is generally built in a certain order, frequently starting with sales, moving on to post-sales services, and eventually to R&D and innovation (see figure 6). For example, the Bahrain Logistics Zone, a boutique light manufacturing and logistics zone in the Gulf, developed a strategy around its location, the market demand it can help its partners access, and the available capacity of its new port. It began with a focus on explicit value-added logistics activities, with more ambitious plans for the future. Today, the zone is ranked number nine globally in the Global Free Zones of the Future 2010–2011, published by FDI Magazine. Access to capital and financing. An EC can significantly differentiate its offerings and improve its attractiveness (and in turn improve its ability to achieve economic development goals) by providing access for its citizens to both capital and debt financing—access that otherwise would not be possible. Successful ECs facilitate and bring together various financing options, suitable for companies in different stages of maturity, from startups to multinationals. The various financing options include: Co-investments. Provide seed funds with

public or private funds for co-investments in (a) major facilities or shared facilities, such as testing labs or co-manufacturing facilities, and (b) taking equity stakes in select companies of the EC. It is important to note that the role of“patient”capital from dedicated pools mostly funded by the government is intrinsic to the success of greenfield EC projects. In a time of cautious investing, government support becomes even more important. Government funding can be conditional on certain economic development goals, such as employment of nationals, development of technology, skill transfer programs, or R&D co-financing. Conditional mechanisms can be particularly useful in zero- or low-tax environments to support the EC’s economic development goals, substituting the classic tax incentives used in other countries. Private capital. Provide private capital through the creation of partnerships with various groups, including angel investors, venture capitalists, and private-equity funds dedicated to the industry sector, to cater to the various types of companies being promoted in the cluster. Public and private debt programs. Facilitate public and private debt programs through synergistic relationships with specialized private debt providers to benefit all parties involved. Specific debt programs, such as export promotion financing, SME growth financing, and others will help attract investment into the EC. All of these financial stakeholders have an interest in the EC because it brings together viable businesses in one location, and the stakeholders benefit from the“pre-screening” the EC does before accepting the tenants in the first place. Finally, EC public seed funds can serve as underwriting for private financing programs, opening the gates to financing that otherwise would not be available. Talent and technology development. Access to diverse, adequately skilled, and competitively priced pools of technicians, engineers, managers, and support staff is vital for any executive making an investment decision. The study reveals significant opportunities for ECs to differentiate by focusing on improving their human capital. Indeed, developing a sector should go hand-

June 2014 53

in-hand with developing talent. ECs are in a unique position to create programs that bring together government efforts, academia, and industry to increase the pool of qualified and readily employable professionals and technicians. Each sector has its unique requirements, but generally a mix of programs is necessary to train technicians, engineers, and project managers. Egypt’s Smart City in the outskirts of Cairo offers an array of such programs to increase both the size and the skills of the talent pool. Furthermore, clusters that effectively build talent in their regions also focus on developing soft skills, such as project management and people management. Although the needed skills will vary by region, the need to bridge the skills gap in a particular location is urgent across most locations. As a result, countries often need comprehensive plans to address their skills gaps in the short, medium, and long term. In

54 June 2014

Figure 6

Economic cluster development cycle: prerequisites for building a value chain

Note: SMEs are small and medium-sized enterprises. IP is intellectual property. MRO is maintenance, repair and operations. Source: Interviews with industry leaders; A.T. Kearney analysis.


Figure 7

Example of a skill development programme (ICT skills) catering to immediate and long-term needs of the cluster

Source: A.T. Kearney analysis.

Figure 7, note how investments are directed not only at making current knowledge workers employable today, but also at strengthening the skills base of the country in the future by addressing the K-12 population. Hand-in-hand with talent development is technology development. For technology development to take place three areas need to be promoted in the economic cluster: scientific research, research and development, and commercialization. ECs that differentiate in the area of technology development typically have a program where they implement a portfolio of activities covering these three areas. Programs funded within clusters have been successful in not only developing new patents, but also commercialising them successfully. Promotion of SMEs and entrepreneurship. This is the principal differentiator for ECs.

Clusters start to flourish only when SMEs are succeeding. Facilitating the creation and supporting the growth of SMEs, therefore, is not only a platform for ECs to meet their economic development objectives, but also to catalyse innovation, connect the cluster to the national economy, and provide a robust, sustainable base that creates employment and increases GDP four and six times faster, respectively, than the rate of large corporations. In addition, in many industries, anchor tenants are concerned about the availability of high- quality local suppliers for their businesses. In many cases, the respective supply chains require various levels of capabilities, which are often provided by a mix of lower-tier international companies and local SMEs. There are many ways to integrate entrepreneurship and SMEs into the fabric of the cluster, including angel investor programs and dedicated SME financing programs, service offerings tailored for them, and business development support. Take, for example, the grassroots angel investor networks that the government of Ontario, Canada, is promoting under the auspices of the Ministry of Research and Innovation. The objective is to close a“pre-commercialisation”

capital availability gap – estimated at US$5 billion by Sustainable Development Technology Canada – by developing angel investment networks in each of the province’s technology clusters, and by providing knowledge, standardized procedures, and resources to invest wisely into the various clusters’ high-potential companies. Pan to the Arabian Gulf, where RAKFZ, the free zone of the Emirate of Ras Al Khaimah, has successfully attracted nearly 7,000 companies since its formation in 2000. RAKFZ prides itself on being the perfect place for SMEs to prosper – and rightfully so, as 70 per cent of its clients are SMEs and entrepreneurs, many of them consisting of one or two employees. This EC has found a unique niche in the free zone market of the UAE, capitalising on it by providing tailor-made licensing, real estate packages, and business services that fit the budgets and needs of SMEs. No doubt, much work is still to be done in clusters spanning from Ontario to Hsinchu to promote and capitalize on the power of entrepreneurship and SMEs in regional economies. ECs can play a leading role in accomplishing this work.

Next-generation economic clusters Since the recession of 2008–2009, the game has changed for greenfield and established economic clusters around the world. Investments have become more difficult to attract, margins have compressed, and international scrutiny has increased, while demand on ECs to create sustainable employment and economic prosperity has peaked. Successful next-generation economic clusters will not only provide world-class infrastructure and real estate, one-stop shops, and incentives that attract businesses in the short term, but also truly differentiate themselves. They will focus on strategies for a choice sector and its value chain, driven by industry veterans who are experts in their fields; facilitate access to capital and financing for their citizens; partner with them to develop the talent and technology that will drive their competitiveness; and relentlessly incubate startups and promote the SME base. True NECs are not a temporary fix or a fashion. They are catalysts of economic prosperity, and they are here to stay.

June 2014 55

y a d o t e ib

r c S Sub




Skills and salaries

48 37 30


Hays’ perspective

ME’s many logistics hubs Over saturation?


Enhancing economic growth

June 2014 Issue 05




How economic growth and the recent recession is weighing in on the employee

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Linde’s Safety Pilot Linde recently took stock of a successful three-week “World of Material Handling” trade fair in Germany


etween May 5 and 23, Linde Material Handling (LMH) showcased its comprehensive range of products and services as well as current trends and visions for the future of internal material flow in an exhibition space measuring around 20,000 sq metres at the Mainz trade fair centre as part of the“World of Material Handling”trade fair in Germany. Linde MH used 10 product innovations to demonstrate how internal material flow will be more energy-efficient, safer, more productive and easier to service in the future. The highlight was the launch of the Linde Safety Pilot, a globally unique driver assistance system for trucks. The functionality of the system was demonstrated by means of a show, in which a forklift truck driver performed critical manoeuvres supported by a protective framework. Without the Linde Safety Pilot, the truck tipped over onto the protective framework when driving with a raised load. But with the Linde Safety Pilot, the truck reduced its speed and the lift mast could not be extended further than permitted. In a purpose-built storage area with high racks, visitors were able to load and unload stacks.

June 2014 57


Public transport for the future UITP MENA Congress which took place at the DWTC from April 27-30 was a fabulous showcase for all the new technology and initiatives being worked on by governments worldwide in collaboration so as to achieve a future which is very dominated by public transport (PT)


he UITP Congress was a meeting point for all the many PT service providers, government authorities as well as technology being readied to make PT the transport of choice for the future. In order for that to be done, future PT users need to be acclimitized to using PT from now. Why is that important? Well first and foremost for the environment. And basically we need to be making strides in reducing our individual and collective carbon footprints. The Middle East is a very hot place so we need cooling all the time add to that the fact that fuel is cheaper here than other parts of the world and so the number of cars on the roads are much higher too than other parts of the world. The UAE Government is making unprecedented progress when it comes to integrating the public transportation system into its residents’ daily lives and finding out about all the new initiatives being developed was even more inspirational. Sponsored by the RTA for the first time, the congress aimed to address a number of challenges common to the region: no centralised, high quality, urban transport data, lack of professionally qualified people to work in PT, high car ownership and government policies encouraging the use of cars among a number of other problems.

58 June 2014

June 2014 59


A structured management style Essa Al Saleh, President and CEO, Global Integrated Logistics, Agility, shares his management philosophies and things that inspire him. the best you can with a great team and the rest will take care of itself.

Which school and university did you go to? I studied Engineering at Tufts University and received my MBA at Boston College. What was your first job? I always had an entrepreneurial spirit. I’d always go to my father’s furniture business that involved attending many trade shows. Additionally, immediately after college, I started a business to supply hi tech / computer devices in the local market, while also working as an Engineer at Kuwait Oil Company during the reconstruction period in 1992. What do they not teach you in business school? Business school and school in general you learn a lot about the theories and important tools, however the work environment really teaches you the realities, the practicalities and the nuances of the real world that are just as important

60 June 2014

Who is your role model? Why? I have many role models and people I learn from. I believe it is important to always be receptive and a good listener in order to learn new insights and understanding. You should apply your experience and learning and not to be afraid to make mistakes. That said, my parents are I believe anything important to me and have is always harder in prepared me for all of life’s my kids teach your mind than it opportunities, me humility, my wife keeps really is in reality. me grounded. In the business context, I Therefore I believe have enjoyed reading Jack Welch’s books. A speech by in discussing/ Franklin D Roosevelt - “The airing issues out man in the arena”is very inspiring to me. I also have which you will many important colleagues realise will make it whom I consider close friends easier. Don’t bottle and partners.

things up.

What is your leadership style? You will need to ask the people around me. My philosophy is to do

What do you think is most important for being an effective manager? In one of Jack Welch’s book he talks about leadership and effectiveness in terms of Energy, Energising, Execution, Edge and Passion which to me is a great framework to consider. You combine this with the necessary skills you have to have in terms of performance/result orientation, business strategy/global outlook and people/organisational skills and I believe this will realise results. How well do you handle stress? What is your fool proof method of de-stressing? I believe anything is always harder in your mind than it really is in reality. Therefore I believe in discussing/airing issues out which you will realise will make it easier. Don’t bottle things up. What do you find encouraging? People. How do you spend your free time? I enjoy being active therefore I tend to run generally and in the winter I enjoy skiing. What is at the top of your agenda right now? Answering your questions.

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The journey that started with a single truck seems a distant memory. Since 1965 our fleet grew over 1,800 trucks and 2,200 various types of trailers such as flatbed, low bed, extendable and semi-hydraulic. In addition to other types of trailers such as conventional hydraulic, SPTs and SPMTs. Our terminal and storage capacity is over 2 million SQM with more than 6.9 million MT of exports a year. Our formula of success is to keep everything 'in-house' starting with employing the right calibers, owning state of the art equipment and utilising the latest technology. Then, we are left with the daily task to integrate all of our resources to offer our clients a holistic logistics & SCM solution.

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