GLOBAL SUPPLY CHAIN MARCH 2021 ISSUE

March 2021 Issue 78

ENHANCING THE BUSINESS OF LOGISTICS

LogiPoint

Globally connected, Locally invested

Specialized logistics zones, expertise and experience are key performance drivers ACME Intralog The Automation Ace

Ehrhardt & Partner Group (EPG) Revolutionary New App

Etihad Group

Holding on despite headwinds

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

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Saudi Arabia’s dominance in the Middle East cannot be overstated. As the biggest economy, dubbed the financial power house, the largest country and the most populous GCC country, the Kingdom enjoys a position of primacy in the region.

The ambitious and grandiose ‘Saudi Vision 2030’, a strategic framework to reduce Saudi Arabia’s dependence on oil, diversify its economy, indigenize the workforce and develop public service sectors including the transportation and logistics infrastructure, has deep implications for distribution and supply chain sector in the Kingdom and beyond its borders.

So naturally, as a logical corollary, we chose to focus on Jeddahheadquartered LogiPoint, a stellar logistics service provider with a track record of landmark logistics projects and 18 years of proven expertise and experience handling mega customers across all the major industry segments.

LogiPoint is our cover story for this edition and Global Supply Chain takes a comprehensive, expansive, wide-angled perspective of its operations in Jeddah, the Kingdom’s biggest and busiest port.

We also revisit ACME Intralog to get the lowdown on the latest on warehousing automation and digitalization in this arena. We engage exclusively with Navin Narayan, the company’s founder-CEO. We also feature a miscellany of key logistics players in the UAE and the region in special news posts and reports including but not limited to the Emirates Group, Etihad Group, DP World, SOHAR and other prominent stakeholders in the logistics and supply chain landscape in the region.

Our regular series of thought leadership articles and contributions from eminent and well-regarded logistics and supply chain professionals are grist for our content mill as we engage, weigh in and deliberate on major issues gripping the industry.

Add to this our latest news roundup, updates, OpEds and a lot of carefully sieved and well-curated input to stimulate and satiate the readers’ quest for gainful insights in the logistics and supply chain arena.

Happy reading!

Malcolm Dias Editor malcolm@signaturemediame.com MARCH 2021 3

March 2021 Issue 78

06

20 LogiPoint NEWS

Up to date news of the Global Suppy Chain industry

28 30 ACME Intralog 34 EMIRATES-RTA 36 Etihad Rail

King Salman Energy Park

Two high profile stakeholders have recently signed up as tenants

Insights from one of the biggest logistics automation services provider in the ME Forging a new partnership for Asset Management The UAE rail operator in partnership with the Fujairah Government will preserve the emirate’s ecology

37 38 Boom for delivery businesses 39 SOHAR

Ehrhardt & Partner Group (EPG)

A new app, the EPG-One is creating a flutter Monitoring App Trackr reports a surge for delivery businesses

Oman’s top port and free zone reiterates its commitment for CSR

40 4 MARCH 2021

Etihad Group

Flying high with new partnerships and involvement.

The premier provider of comprehensive logistics services in Saudi Arabia

42 IBX Logistics 43 GSC Qatar 44 GPCA 46 ARAMEX 48 Gulfood 2021 52 RAK International Airport 54 Saudi Arabian Logistics (SAL) 56 DP World 58 OpEd 60 AP Moller-Maersk Breaking the competition barrier in the UAE Continuing to maintain a high profile in the GCC nation

Committed to cutting plastic waste and sustainability A roundup A report

RAK reaches out to CIS countries

The Kingdom’s top LSP signs new deals A roundup

Warehouse optimization in a pandemic

Group to operate the world’s first carbon neutral liner vessel by 2023

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UAE aces in GCC, ranked 4th globally in Agility EML Index n The UAE has ranked number one overall as the most competitive emerging markets in GCC, according to the recently published annual Agility Emerging Markets Logistics Index.

The UAE also topped all three individual sub-indices in the region. This reflects the UAE’s commitment to strengthening its business environment in the non-oil sectors and successful implementation of the comprehensive national SME development strategy.

The Index, now in its 12th year, ranks 50 countries by factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors. China, India and Indonesia topped the Index, while three Gulf countries made the top 10: UAE (4), Saudi Arabia (6) and Qatar (9).

In the area of business fundamentals, Gulf countries dominated the top spots. UAE was No. 1, followed by Saudi Arabia (3), Qatar (4), Bahrain (7), Oman (8) and Kuwait (11).

Nearby Jordan was 10th. China, India and Indonesia rank highest for domestic logistics; China, India and Mexico are at the top for international logistics.

“Gulf countries are pushing hard to diversify and integrate their economies by developing world-class infrastructure and creating fair, transparent conditions for business,” affirmed Elias Monem, Agility Global Integrated Logistics (GIL) CEO for Middle East & Africa.

The regional Gulf economy could get a boost as a result of the diplomatic breakthrough that ended Saudi Arabia’s three-year

economic blockade of neighboring Qatar in late 2020. That could lead to tighter integration in a region where cross-border trade, trucking and e-commerce are growing dramatically.

Transport Intelligence (Ti), a leading analysis and research firm for the logistics industry, compiled the Index.

“As the pandemic crisis finally unwinds over the next two years, those most resilient will bounce back the fastest,” noted John Manners-Bell, Chief Executive, Ti.

Emirates SkyCargo partners with UNICEF for vaccine distribution n Emirates SkyCargo has signed an agreement with UNICEF to prioritize the transport of Covid-19 vaccines, essential medicines, medical devices and other critical supplies to help fight the pandemic. This initiative supports the COVAX facility for the equitable and wider distribution of vaccines to counter the pandemic.

“Through our partnership with UNICEF, we will be taking yet another step to prioritize and facilitate the rapid and secure movement of vaccines particularly to communities hard hit by the

6 MARCH 2021

disease,” commented Nabil Sultan, Emirates Divisional Senior Vice President, Cargo.

In January 2021, under the directives of Vice President and Prime Minister of the UAE and Ruler of Dubai HH Sheikh Mohammed Bin Rashid Al Maktoum, Emirates SkyCargo joined hands with three other Dubai-based entities- DP World, International Humanitarian City and Dubai Airports to form a vaccine alliance for rapid transport to the developing world through Dubai.

Etihad Cargo joins UNICEF Humanitarian Airfreight Initiative n Etihad Cargo has signed a five-year Memorandum of Understanding (MoU) with the United Nations Children’s Emergency Fund (UNICEF) to support its Humanitarian Airfreight Initiative.

Under the MoU, Etihad Cargo will aid the worldwide distribution of Covid-19 vaccines, essential medicines, medical devices, and other critical supplies to respond to the pandemic, managing all requirements through its dedicated healthcare workforce.

“Etihad Cargo had no hesitation in supporting UNICEF’s far-reaching humanitarian initiative to aid children most at risk worldwide,” explained Martin Drew, Senior Vice President, Sales and Cargo, Etihad Aviation Group.

Under the MoU, Etihad Cargo will collaborate with UNICEF’s global freight forwarder network, including with regard to services for countries with no commercial access.

Services offered include high loading priority for vaccines and essential

humanitarian supplies, shipment security and controlled cool chain monitoring and adjusting Etihad Cargo’s cold chain capacity to meet UNICEF’s forecast requirements.

“Delivery of these life-saving vaccines is a monumental and complex undertaking, considering the sheer volumes that need to be transported, the cold chain requirements, the number of expected deliveries and the diversity of

routes,” remarked Etleva Kadilli, Director of UNICEF Supply Division.

The UNICEF Humanitarian Airfreight Initiative brings together global airlines that cover routes to more than 100 countries, in support of the COVAX Facility, a global effort aimed at equitable access to vaccines. During the past 12 months, Etihad Cargo has increased its pharmaceutical shipments by 50 per cent through PharmaLife.

ADNOC awards Cosmo offshore exploration block n The Abu Dhabi National Oil Company (ADNOC) recently announced the signing of an exploration concession agreement, awarding the exploration rights for Abu Dhabi’s Offshore Block 4 to Cosmo E&P Albahriya Limited, a wholly-owned subsidiary of Japan’s Cosmo Energy Holdings.

The exploration concession agreement was signed by HE Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, and Hiroshi Kiriyama, Group CEO, Cosmo.

“This concession award builds on our long-standing relationship with Cosmo and reinforces the deep-rooted and successful strategic relationship between the UAE and Japan, ADNOC’s largest importer of oil and gas products,”

emphasized Dr. Al Jaber.

Under the terms of the agreement, Cosmo will hold a 100 percent stake in the exploration phase, investing up to US$ 145mn (AED 532mn) towards exploration and appraisal drilling, including a participation fee, to explore for and appraise oil and gas opportunities in the block that covers an offshore area of 4,865sqm northwest of Abu Dhabi city.

“This award represents a significant milestone for us to accelerate our upstream business in Abu Dhabi and further strengthens our seamless and multi-faceted partnership with both Abu Dhabi and ADNOC,” noted Kiriyama.

Following a successful commercial discovery during the exploration phase, Cosmo will have the right to a production concession to develop and produce such

commercial discoveries.

ADNOC has the option to hold a 60 percent stake in the production phase of the concession. The term of the production phase is 35 years from the commencement of the exploration phase and the block offers the potential to create significant in-country value for the UAE over the lifetime of the concession.

MARCH 2021 7

Rafed and G42 Healthcare sign agreement for storage of vaccines

Aramco and Alfanar sign MoU to further promote localization

Alfanar-Aramco MoU signing ceremony.

Rafed and G42 sign Covid-19 vaccine storage agreement.

n Rafed, a healthcare group purchasing organizationpart of ADQ, has signed a new agreement with G42 Healthcare, a leading healthcare technology company to provide stateof-the-art services that include the provision of storage facilities for Covid-19 vaccines.

As part of the agreement between the two Abu Dhabi entities, Rafed will oversee the logistics including the management, transportation, and storage of the vaccine doses in the new designated facilities, in line with the requirements and standards of Abu Dhabi’s Department of Health.

Rafed distribution centre is a dedicated pharmaceutical facility that can cater to all temperature band requirements, from +20C storage for PPE and

8 MARCH 2021

medical equipment, to -90C deep freezer capabilities to predominantly cater for vaccine storage and handling.

“We’re glad to be partnering with G42 Healthcare on this important mission serving humanity during this worldwide pandemic,” commented Rashed Saif Al Qubaisi, CEO, Rafed.

“We see this as the first step in what will prove to be a long-term partnership with all other members of the Hope Consortium,” noted Ashish Koshy, CEO, G42 Healthcare.

Rafed has also recently announced that the company signed a collaboration agreement with Abu Dhabi Ports to jointly launch the largest healthcare and medical supplies cold store distribution centre in the UAE.

n Saudi Arabia’s state oil company Aramco and Alfanar have agreed to build a sustainable cooperation by signing a Memorandum of Understanding (MoU) which covers various initiatives that are aimed to augment localization, innovation, digitization and sustainability in the Kingdom.

The initiatives are in line with the In-Kingdom Total Value Add (IKTVA) flagship program that Aramco launched to support economic development through local content increment.

The MoU was signed between Ahmed Al Saadi, Senior VP, Technical Services, Aramco and Abdul Salam Al Mutlaq, Chairman, Alfanar, at the Alfanar Industrial City located in Riyadh.

“This is a historic moment for us at Alfanar to partner with Aramco and to work together in further developing the local content,” remarked Al Mutlaq.

“Through a collaborative and inclusive model, we are committed to work with private companies to ensure that the local content objectives of the Kingdom of Saudi Arabia are achieved,” commented Al Saadi.

Currently, the initiatives that were signed under the MoU cover the following sectors: manufacturing, EPC, modularization, Commercialization of Intellectual Properties (IP), energy efficiency and environmental protection The MoU was signed during a visit by Aramco’s senior management to Alfanar Industrial City, the largest privately developed manufacturing facility in the Middle East which is spread across 720,000sqm.

Israel’s Chamber of Commerce Federation joins World Logistics Passport n The World Logistics Passport (WLP), a major policy initiative established to increase trading opportunities between emerging markets, recently welcomed Israel as a participant in the programme, marked by a virtual signing ceremony with the Federation of Israeli Chambers of Commerce.

The signing ceremony was attended by Sultan Ahmed Bin Sulayem, Chairman, Dubai’s Ports, Customs and Free Zone Corporation (PCFC), and Amir Shani, Vice President of the Federation of the Israeli Chambers of Commerce.

“Through the WLP we aspire to forge closer economic ties and harness our collective experience, to unlock new trade opportunities for Israel with the world, via Dubai, and with Tel Aviv as a major logistics centre,” remarked Bin Sulayem.

Trade between Dubai and Israel reached a value of AED 1bn (US$ 272mn) between September 2020 and January 2021. This included 6,217 tonnes of sea-freight and air-freight moving between the two nations. Major imports and exports included mechanical and medical devices, electronic devices, flat screens, smart phones, diamonds, and engine spare parts.

“We believe our members will greatly benefit from this global incentives programme to expand their trade opportunities,” commented Shani.

This partnership will allow Israeli companies to reduce cost and improve their supply chain to and from Israel using Dubai as logistical hub for new markets.

The Abraham Accord and Israel’s robust air and sea connections to Dubai enable it to become a regional and global player and open new trade routes, possibilities and business exchange.

Amir Shani, Vice President of the Federation of the Israeli Chambers of Commerce.

SOHAR and Hutchison Ports officials inking he deal via a virtual ceremony.

Study for SOHAR Port expansion conducted with Hutchison Ports n In line with implementing the Sultanate’s aspirations to increase revenue from the logistic sector and in accordance with the objectives of ‘Oman Vision 2040’, SOHAR Port and Freezone recently signed a Development Agreement with Hutchison Ports Sohar.

The agreement will see a joint study conducted for the expansion of SOHAR Port alongside the addition of a new container terminal capable of receiving mega-vessels.

The study will commence this year

and will assess the social, environmental, logistical, In-Country Value and economic impacts of any future expansion.

Moreover, it will provide a clear roadmap for future expansion to meet the needs of the growing local and regional economy.

Apart from enhancing the competitiveness of SOHAR Port, at the regional and global levels, especially in containers and cargo handling, it will further contribute towards the generation of more local job opportunities.

SOHAR Port is currently witnessing a

growing occupancy rate and efforts should be enhanced to increase its capacity, to enable it to keep pace with future development.

The addition of new areas will increase the attractiveness of the Port and comprise the necessary infrastructure to attract important international shipping lines.

The successful implementation of the project is set to bring in sustainable economic and social benefits for the Sultanate as a whole, and in particular the Governorate of North Al Batinah.

MARCH 2021 9

Abu Dhabi rolls out green public transport fleet of buses n Abu Dhabi’s Emirates Global Motor Electric, part of the Al Fahim Group and Yinlong Energy have recently announced the launch of environment-friendly Lithium Titanate Oxide (LTO) Electric buses in the Middle East region. LTO electric buses can be charged in under 20 minutes as compared to a few hours for other lithium-ion electric buses.

The bus with T3 rated air-conditioner which can perform at temperatures in excess of 50°C, was successfully tested in Abu Dhabi during the summer of 2020 for

battery performance and fast charging.

The LTO battery is the safest Lithiumion battery in the world with the longest life span of over 25 years making it the most advanced lithium-ion battery available in the market today.

According to the company, just one diesel bus with an electric bus is the equivalent to reducing harmful emissions from 27 passenger cars driven for one year, and 12,175 gallons of diesel over a ten-year period, a press communiqué stated.

“We at Al Fahim are committed to investing resources to implement as well as accelerate the sustainability agenda of the UAE,” noted Mohammed Abdul Jaleel Al Fahim, Group Head Business Development.

“With the new bus fleet set to be rolled out across the rest of the Middle East following the launch, we are confident that this will transform public transportation in the region,” observed Susan Lam, Vice President, Yinlong Energy.

dnata stays ahead in keeping cargo cool in Australia n dnata has invested in leading-edge equipment to further enhance its pharma handling capabilities globally. The company has added four high-tech ‘cool dollies’ to its Australian cargo fleet, becoming the first air services provider to offer a fully integrated, temperature-controlled cool chain for pharma and perishable shipments in this important market.

Offering a closed, temperaturecontrolled system, the specialized containers will ensure safe and seamless delivery of temperature-sensitive goods, including pharmaceuticals and vaccines, between aircraft and dnata’s advanced cargo facilities. dnata will operate two cool dollies each at Sydney Airport (SYD) and Melbourne Airport (MEL), providing maximum safety to airline partners and their customers at every stage of the handling process.

“We stay focused on providing continual improvements that enhance

10 MARCH 2021

the safety and security of our customers’ pharma shipments,” said Dirk Goovaerts, Regional CEO, Asia Pacific, dnata. “dnata‘s investment will ensure Sydney Airport continues to play its central role in the nation’s air cargo network,” noted Vanessa Orth, Chief Commercial Officer, Sydney Airport.

“The product will certainly add to dnata’s existing cargo capability at

dnata and Sydney Airport officials-supplied image.

Melbourne Airport which is the leading domestic and 24/7 international freight hub in Australia,” remarked Shane O’Hare, Chief of Aviation, Melbourne Airport. dnata’s new cool dollies allow the company to take pharma handling to a new level.

Providing temperature-controlled storage from -25°C up to +25°C, the specialized containers mitigate risk of temperature deviations and contamination throughout the handling process.

Dubai Customs authorizes registration of Ducamz dealers n Sultan Bin Sulayem, DP World Group Chairman & CEO and Chairman of Ports, Customs and Free Zone Corporation recently stated that Dubai has maintained a momentum in its external trade, with customs transactions growing 23% and customs declarations growing 30% compared to 2019.

During his visit to the Deira Wharfage, Ducamz (Dubai Car & Automotive City Free Zone) and Dry Port customs centres, Bin Sulayem highlighted the great role Dubai Creek plays in developing maritime trade.

Ahmed Mahboob Musabih, Director General of Dubai Customs and members of the higher management accompanied the Chairman in his visit.

“There are great expectations of recovery and growth, especially with the advent of EXPO 2020,” commented Musabih.

In the last year, Ducamz and Dry

Sultan Ahmed Bin Sulayem and Dubai Customs officials during an inspection tour.

Port Centres completed around 1.3m transactions (1.12m transactions by Dry Port Centre, and 161.4k transactions by Ducamz). The Dry Port Customs Centre completed 934,624 customs declarations and 30,157 inspection booking requests, whereas Ducamz completed 40,476 customs declarations and 6,914 inspection booking requests.

Hamad Kajour, Acting Director, Land Customs Centre Management; Mohammed Abdullah, Senior Inspection Manager, Hatta Customs Centre; Naji Matar, Senior Inspection Manager, Ducamz; Hamad Al Katbi, Inspection Manager Dry Port, and Khalfan Bin Natouf, Customs Expert were present during the Chairman’s visit.

Al-Futtaim Hertz UAE supplies Toyota vehicles to United Trans n Al-Futtaim Hertz UAE, part of AlFuttaim Automotive, has announced that it has provided United Trans with Toyota Hiace vehicles for Dubai ‘Bus on Demand’ service, the world’s most powerful on-demand transit solution in the city. The service operates in selected zones in Dubai.

Al-Futtaim Automotive entered into this agreement in line with its efforts to maintain its heritage of transporting people and goods with the highest safety and security

standards and peace of mind.

As part of the deal, Al-Futtaim Automotive worked with Hertz to supply United Trans with a fleet of 13 of its recently launched new generation Toyota Hiace buses that are being used by the Dubai ‘Bus on Demand’ service to transport customers efficiently.

The collaboration is operated and managed by United Trans, a fully owned subsidiary of the Al Serkal group.

“We are confident that by adding

this fleet to our roster of vehicles we are able to cater to our customers in a more seamless comfortable, safe and secure manner,” observed Raed Abu Hijleh, Managing Director, United Trans.

“Our aim is to help deliver safe, effective and sustainable solutions, leveraging our strong automotive expertise and history that has helped us to become a best-in-class automotive solutions partner,” noted Marius Anton, National Operations Manager, Hertz UAE.

MARCH 2021 11

DMS announces sailing schedule for its innovative ‘Supply on Demand’ solutions n Doha Marine Services (DMS), a leading offshore support vessel company, has seen a successful start to its ‘Supply on Demand’ solutions and is now runs a twice-weekly sailing schedule.

‘Supply on Demand’ by DMS provides marine solutions on a pay-as-you-go basis, avoiding the need for customers to enter into restrictive contracts with their offshore service providers.

The ‘Supply on Demand’ solution allows customers to control their cargo movement from booking to post-transit analysis.

Customers receive a dashboard where they can create bookings, track cargo and monitor or adapt routes to reduce costs, and crucially, they are only charged for the cargo they transport.

“The “Supply on Demand”solution fills a gap in the market which allows operators

to pay for only what they need. The model optimizes efficiency through better utilization of vessel space, improved route planning and reduced fuel consumption, all in real-time,”commented Gerben Nijboer, General Manager, DMS. ‘Supply on Demand’s pilot began in Qatar in January 2021, with vessels moving cargo to the North and East fields. The number of vessels included in the offering will increase in line with demand for the service and as customers’ operational needs require. All vessels included in the service offering meet clients’ marine assurance requirements.

Founded in Qatar in 1990, Doha Marine Services is a leading offshore support vessel company that provides critical logistics support and marine solutions to the Qatar energy industry.

Gerben Nijboer, General Manager, DMS.

Qatar Airways Cargo appoints new GSAs n Qatar Airways Cargo will recommence cargo sales and bookings in Saudi Arabia, the UAE and Egypt with the appointment of General Sales Agents. The appointments are effective 21 February 2021, The GSA letters of appointment were awarded to Globe Air Cargo, ECS Group Subsidiary, for the United Arab Emirates; Yusuf Bin Kanoo for Saudi Arabia and Venus Air Cargo for Egypt “The resumption of passenger flights to these three countries is great news, allowing us to re-establish trade and support our customers. Along with the flights, we will also be offering trucking services to and from other offline points within these countries,” noted

12 MARCH 2021

Guillaume Halleux, Chief Officer Cargo, Qatar Airways.

The cargo carrier operates belly-hold flights to Riyadh and Jeddah in the Kingdom of Saudi Arabia; Abu Dhabi and Dubai in the UAE, and Alexandria and Cairo in Egypt. Qatar Airways Cargo will start accepting cargo bookings for transporting freight into and out of these three countries through its appointed General Sales Agents.

The world’s leading air cargo carrier is perfectly positioned to support its customers and the growing demand for cargo, as it expands its fleet and network strategically, enhancing its products and investing in digitalization to support its customers’ business.

FedEx opens new ‘World Service Centres’ in Saudi Arabia n SAB Express, the FedEx Express global service provider in Saudi Arabia, has recently opened five new FedEx World Service Centers. All of these are fully functional now.

The new service centres are located in Riyadh, Jeddah, Medina, and in Al Khobar and Jubail in the Eastern Province and will offer a range of delivery and shipment services.

SAB Investment was founded by the Chairman and Group Chief Executive Officer, Sheikh Salah Al Balawi and is headquartered in Jeddah, Saudi Arabia, with offices in London, Dubai and Cairo.

SAB Express began providing services for TNT Express in the Kingdom of Saudi Arabia in 1996. After the acquisition of TNT Express by FedEx Express, SAB Express was appointed as a service provider for both companies in Saudi Arabia.

SITA injects smart low-touch solutions at Bahrain International Airport n Backed by SITA’s state-of-the-art technology, Bahrain International Airport’s (BIA) newly opened Passenger Terminal is better prepared to respond to the changing demands of travel during the pandemic, according to a press communiqué.

The ultra-modern facility positions BIA as the most advanced boutique airport in the Gulf, increasing its capacity to 14 million passengers per year.

Using SITA’s Operations at Airports portfolio, the airport benefits from realtime insights, improved stakeholder collaboration, and increased agility to optimize operations. The new terminal includes Smart Path biometrics and an airport management system SITA is also providing Flex, its advanced cloud-based passenger processing solution. Flex allows airlines and the airport to develop new cloudnative applications for passengers and airport workers that transform the passenger experience and create new revenue opportunities.

“The implementation allows for deeper integration of Smart Path throughout the airport and further installation of automated systems, future-proofing the airport for decades to come,” affirmed Roger Nakouzi, Vice President Sales, SITA. The Airport Modernization Program (AMP) is the largest investment in Bahrain’s aviation sector for more than 20 years and will usher in a new era for air

transport in the Kingdom.

“With SITA’s support, we have enhanced operational efficiency and are in a stronger position to meet the new standards and measures required,” asserted Mohamed Yousif Al Binfalah, CEO, BAC. The ICT contract was undertaken collaboratively between SITA-Thales signed with the Ministry of Transport on behalf of Bahrain International Airport.

MARCH 2021 13

Etihad and Gulf Air strategic commercial cooperation pact n Etihad Airways and Gulf Air have signed a Strategic Commercial Cooperation Agreement (SCCA) to deepen their partnership between Abu Dhabi and Bahrain and beyond the respective hubs.

The wide-ranging SCCA, subject to obtaining applicable governmental and regulatory approvals, sets out specific actions for deepening and broadening commercial cooperation, building on the Memorandum of Understanding (MoU) the airlines signed in 2018.

The partners will work together to optimize joint operations on the Abu Dhabi-Bahrain route, with improvements to network connectivity over each of the partners’ hubs.

Additionally, the partners will work together to improve the customer journey on Abu Dhabi –Bahrain, making it more seamless, regardless of the operating carrier, with enhanced and harmonized policies and products in areas such as baggage and ancillaries.

The 2018 MOU also provided for exploration of MRO, pilot and crew training, and cargo opportunities, which

Capt. Waleed Alalawi and Tony Douglas at the signing ceremony.

the parties will now re-visit in light of current market opportunities and company requirements.

The Strategic Commercial Cooperation Agreement was signed by Tony Douglas, Group Chief Executive Officer, Etihad Aviation Group, and Captain Waleed AlAlawi, Acting CEO, Gulf Air.

“This agreement reinforces the strength of the ongoing partnership between our two airlines,” affirmed Douglas.

“This agreement will empower both of us to offer a more elevated experience to passengers and widen their travel options,” commented AlAlawi.

Abu Dhabi Ports advances a culture of innovation to transform trade n As part of its continued effort to drive the evolution and growth of its business through innovation, Abu Dhabi Ports has undertaken its most ambitious month-long roster of innovation activities planned to date.

Comprising a wide array of events and activities, the emirate’s dedicated maritime, ports, and logistics trade enabler’s four-week festival of innovation has been organised in conjunction with UAE Innovates held under the patronage of HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.

Abu Dhabi Ports’ innovation division is showcasing a wide variety of proprietary innovations and proof of concepts related to smart containerized data centres, real-time technology,

14 MARCH 2021

autonomous technology, robotics, AI, in addition to efficient and sustainable energy solutions.

The festival highlighted more than 2,100 ideas submitted by employees and stakeholders in 2020, alongside presenting a rich agenda of events based on five dedicated innovation themes: smart and green port technologies, space logistics, ports-emirates duality, and futuristic trade zones and logistics.

“This year, Abu Dhabi Ports’ comprehensive catalogue of Innovation Month activities encourages participants to contribute to the national effort of generating value-added innovative solutions that connect to the global ecosystem of innovation,” commented Eiman Al Khalaqi, Vice President of Innovation, Abu Dhabi Ports.

Eiman Khalaqi, Vice President of Innovation, Abu Dhabi Ports.

Abu Dhabi Maritime and ADNOC seal ‘Waterways Safety’ Agreement

Stefano Crotti, Head of Logistics, Nestle-MENA.

Capt Saif Al Mheiri, Managing Director, Abu Dhabi Maritime.

n In a joint effort to boost maritime safety and to enhance Abu Dhabi’s maritime regulations, Abu Dhabi Maritime and the Abu Dhabi National Oil Company (ADNOC) have recently signed a five-year agreement with the aim of enhancing the safety of Abu Dhabi’s waterways.

The agreement will allow for enhanced exchange of information, data and expertise concerning the regulation and management of maritime activities, infrastructure developments and facilities across Abu Dhabi’s waterways.

Under the terms of the agreement, both parties will implement robust and responsive monitoring, risk-mitigation, business continuity and crisis management systems through coordinated development plans, maritime activities, as well as marine traffic and infrastructure projects within Abu Dhabi’s waters.

“Abu Dhabi Maritime’s co-operation agreement with ADNOC is another important step in boosting our emirate’s position as a global maritime centre,” remarked Captain Saif Rashid Al Mheiri, Managing Director, Abu Dhabi Maritime.

ADNOC is a leading contributor to Abu Dhabi’s maritime sector providing shipping, maritime, port, logistics and oil field services for its customers by operating dedicated petroleum ports located in Jebel Dhanna, Ruwais, Das, Zirku and Mubarraz.

“We are pleased to work in partnership with Abu Dhabi Maritime as we aim to secure safe waterways and to ensure sustainable traffic flow, particularly for products from the oil and gas industry,” commented Captain Jasim Al Khamiri, Senior Vice President, Petroleum Ports Authority Unit, ADNOC.

Nestlé MENA and CHEP renew contract to replace white exchange pallets n CHEP, the supply chain solutions company, recently announced a two-year contract renewal plus increased business with Nestlé Middle East & North Africa (MENA) to replace traditional white exchange pallets with a CHEP managed pallet pooling solution throughout the region.

The move is expected to streamline Nestle’s supply chain.

The switch from white wood to CHEP pooled pallets is expected to streamline Nestlé’s supply chain, while reducing cost and driving sustainability benefits mainly reducing deforestation and less CO2 emissions.

“The sustainability advantage that is built into the CHEP’s ‘share and reuse’ business model is important to contribute to a circular economy and in meeting Nestle’s commitment for zero net emissions by 2050,” commented Stefano Crotti, Nestlé Head of Logistics MENA. “Nestlé is a key strategic global customer for CHEP. We share a vision of the future based on sustainability and responsibility towards our environment,” remarked Marco Salort, MENA Commercial Director, CHEP. With its regional head office located in the United Arab Emirates (UAE), Nestlé operates 25 factories in 19 countries across MENA.

MARCH 2021 15

Quorum to boost operations for ME’s energy sector n Quorum Software, a leading player in digital transformation for the energy industry, recently announced two major transactions that will result in the creation of the world’s largest software provider of business workflows focused solely on energy.

As a result of the transaction, Quorum Software will strengthen its presence in the Middle East through existing offices in UAE and Kuwait and business in Qatar and Saudi Arabia, to play a leading role in accelerating the digital transformation of the oil and gas energy sector in the region.

Houston, Texas-headquartered Quorum will merge with Aucerna, a globally trusted provider of integrated planning, execution and reserves software for the energy industry. The deal will combine two Thoma Bravo (a leading US private equity firm)-owned industry leaders with a shared focus

on driving digital transformation and complementary customer offerings.

Also announced is that the newly combined company, operating as Quorum Software, has entered into an agreement with TietoEVRY to acquire the latter’s entire Oil and Gas software business.

Following the acquisition, Quorum will be the largest software provider with the broadest portfolio of solutions focused entirely on serving energy companies of any size across the globe.

“Over the last 20 years, Quorum has become the leading innovator of software deployed by North American energy companies,” commented Gene Austin, CEO, Quorum Software.

“Our three organizations complement each other — from the software that our great people design to the energy markets where we operate,” remarked Wayne Sim, CEO and Co-founder, Aucerna.

Gene Austin, CEO Quorum Software.

Bahri showcases maritime capabilities and innovative solutions at NAVDEX 2021

Abdullah Aldubaikhi, CEO, Bahri.

16 MARCH 2021

n Bahri participated in the recently concluded fourth edition of the Naval Defense and Maritime Security Exhibition (NAVDEX 2021) held in Abu Dhabi during the last week of February 2021, alongside the International Defence Exhibition and Conference (IDEX 2021.

Bahri Logistics, one of the five business units of Bahri, displayed its state-of-theart maritime competencies and innovative solutions at NAVDEX 2021, which took place at the Abu Dhabi National Exhibition Centre (ADNEC) and attracted over 100 international exhibitors, including leading maritime security and logistics companies from 27 countries worldwide.

“By participating in NAVDEX, Bahri Logistics has taken an important step to diversify its maritime capabilities, explore new markets and opportunities, and enhance its operational efficiency,” commented Abdullah Aldubaikhi, CEO, Bahri.

Bahri Logistics also showcased other solutions, including cargo delivery to remote destinations, chartering vessels and aircraft to transport military cargoes, ground handling charter flights, and obtaining overflight and landing permits for civil airports and military airbases.

The show also enabled Bahri to explore opportunities in terms of new markets, strategic partnerships, and acquiring cutting-edge technology and equipment.

Bahri Logistics is Bahri’s most established business unit and a global top-10 breakbulk carrier. It operates six advanced multipurpose vessels that are capable of carrying different types of cargo, including project, ro-ro, breakbulk, and container cargo.

The company’s business unit has been offering an electronic system to track all shipments from the country of origin to the final destination since 2017.

Emirates SkyCargo showcases its support for the international F&B industry at Gulfood 2021 n Emirates SkyCargo underlined its commitment to the international food and beverage industry with its participation in Gulfood 2021, the world’s largest annual food and beverage trade exhibition held in Dubai in February 2021.

This year, Emirates SkyCargo invited some of its significant logistics partners and customers to jointly present logistics capabilities at its stand.

Emirates SkyCargo powers an important segment of the global cross-border logistics in trade of food and beverages, transporting fruits and vegetables, seafood, meat, food ingredients and ready to consume food and beverage items on its flights across six continents.

During the pandemic year, Emirates SkyCargo continued the vital task of maintaining connectivity for food items, playing an important role in maintaining food security and providing a steady

stream of income to communities exporting food and produce.

Overall, between January and December 2020, Emirates SkyCargo transported on an average over 600 tonnes of food and beverage items every day on its flights. The air cargo carrier helped bring in more than 125,000 tonnes of food into the GCC region helping

maintain uninterrupted supply chains for food items during the pandemic.

Some of the diverse food items transported globally on Emirates SkyCargo included cherries and salmon from Chile, avocadoes and berries from Mexico, strawberries and sweet potatoes from Egypt, green beans and pineapples from Kenya, and much more.

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Web: www.tranzone.ae MARCH 2021 17

DP World UAE Region attains 100% conversion in customer transactions

n DP World, UAE Region leveraged Emirates NBD’s digital collection solution to convert 100 per cent of related counter transactions to online collection on its ‘Smart Transactions’ platform in 2020.

The initiative was operated in collaboration with Emirates NBD Corporate & Institutional Banking, a press note stated.

DP World, UAE Region, utilised Emirates NBD’s advanced digital infrastructure and expertise to create a digital collections solution. It offers a safe, secure and easily accessible digital alternative to DP World, UAE Region’s customers for paying fees.

Customers opting for digital transactions reflect the remarkable success of the collaboration between DP World, UAE Region and Emirates NBD to help Prepaid and Advance port customers.

Paperless Advance Deposit Account

and Prepaid Account Top Up are two solutions that are being widely used for transactions. The enhanced receivables solution employs an Application Programming Interface (API)-based integration between DP World, UAE Region’s collection (ERP) system and Emirates NBD’s cash/cheque deposit machines (CDM).

“The smart transactions initiative was aimed at discontinuing deposit requests at our service counter, actively encouraging all customers to use the Emirates NBD CDM facilities for top-up requirements,” said Asim Abdul Wahid Al Abbasi, CFO, DP World, UAE Region.

“Our agreement builds on Emirates NBD’s commitment to collaborate with large businesses to further the smart nation vision of the UAE,” noted Ahmed Al Qassim, Senior EVP and Group Head, Corporate & Institutional Banking, Emirates NBD.

Agthia and Veolia partner to commit for a more circular economy n Agthia Group recently announced that it continues to propel its partnership with Veolia, a global leader in optimized resource management, via successful sustainability initiatives launched over the past year.

The MoU between Agthia and Veolia was first signed during the 2020 edition of Gulfood and underscores the shared commitment of the two companies to drive sustainability efforts by working together with the community.

One such initiative was the launch of the Recapp mobile application, an innovative digital service developed by Veolia to provide a free of charge door to door collection for recyclables in Abu Dhabi.

Since November 2020 and in just 3 months, the app has garnered more than 1,000 users and has helped collect more than 2 tons of recyclables.

“Agthia recognizes the importance of providing innovative and digital collection solutions to address the challenges of post-consumed plastic bottles and promote recycling,” commented Alan Smith, CEO, Agthia Group.

“Recycling is key for the transition from a linear to circular economy and plastic and other solid waste need to be reused, recycled or composted for a better future and environment,” remarked Dr. Rabih Kamleh, Chief Quality and R&D Officer, Agthia.

“Veolia is committed to develop a recycling ecosystem and close the loop of resources by supporting the packaging industry, led by Agthia, in the development of alternative Eco-packaging solutions,” observed Sébastien Chauvin, CEO, Veolia Middle East.

18 MARCH 2021

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LOGIPOINT—COVER STORY

The LogiPoint Legacy: Enabling Saudi Arabia’s Logistics and Supply Chain Industry A leading logistics real estate company and Logistics service provider operating a network of Integrated Logistics Parks across Saudi Arabia, dedicated to facilitating economic growth in the region and acting as a platform for generating real value for the stakeholders in the Logistics and Supply Chain industry with a wide spectrum of logistics solutions services to support and enable existing and potential clients.

LogiPoint was established in 1999 with the objective of leveraging the economic potential of the Red Sea Port of Jeddah to create a logistics and supply chain hub in the region which would cater to the future needs of the Middle East’s largest economy. Today, LogiPoint is at the forefront of driving innovation and change for greater economic growth of the region.

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y

LOGIPOINT—COVER STORY

S

audi Arabia is the largest of the GCC nations and contributes more than half the region’s GDP. As the world’s largest exporter of oil, and boasting the world’s third largest reserves of natural resources valued at over US$ 34tn, it is one of the richest countries in the world and the most robust and vibrant economy in the region. It is also the most populous of the GCC nations, and boasts one of the youngest populations in the world.

Geographically, the Kingdom enjoys a unique strategic importance straddling the global shipping routes through its ports on the Red Sea Gulf in the West and on the Arabian Gulf in the East.

Propelled by the revenues from its substantial oil and gas exports, the Kingdom has grown at an exponential pace over the past few decades, and is poised for accelerated growth in the coming years as the Government invests heavily in diversifying away from the oil economy. These investments are expected to usher in another round of rapid industrialization and development of the Kingdom’s mammoth manufacturing, transportation and service infrastructure.

The Government has laid out an ambitious growth plan for the Kingdom in the form of Vision 2030, which is a comprehensive blue-print for unprecedented and extensive investments in large-scale industrial plants and mega projects in energy, power, utilities, transportation, and telecommunication.

At the center of this vision is the idea that trade and commerce must thrive and the Kingdom’s substantial human capital must be utilized for the nation’s growth through investor-friendly incentives and policy reforms.

Saudi Vision 2030 Saudi Vision 2030 makes Logistics and Supply Chain one of the pillars of economic growth and development in the Kingdom. It has thus become imperative for the stakeholders in the industry to chalk out their own strategies and paths in such a way that they play their respective roles in attaining the Vision 2030, which envisages the Kingdom as becoming a global logistics hub in the years to come.

Jeddah For centuries, Jeddah has served as the gateway to the hinterlands of Hijaz and Najd, the Western and the Central regions of the Kingdom. In the first half of the twentieth century, with the discovery of oil and the revenues from it, the Kingdom took an accelerated path to rapid growth and development, and quickly grew into a robust demanddriven economy powered by extensive public expenditure and mega projects.

This, in turn, attracted millions of foreign workers on the one hand, and built the capacity, on the other hand, to host tens of millions of pilgrims every year.

Jeddah benefitted directly from this dual windfall and evolved into the Kingdom’s commercial and cosmopolitan capital.

Jeddah Islamic Port found itself thriving at the confluence of marine trading routes between the East and the West while catering to bulk of the Kingdom’s burgeoning demand.

Over the years, acting as the commercial hub and the principal gateway to Saudi Arabia, Jeddah and its deep-sea port, Jeddah

MARCH 2021 21

LOGIPOINT—COVER STORY

Islamic Port (JIP), have been instrumental in shaping and boosting the country’s development. By the turn of the century, the logistics landscape of the Kingdom was ripe for the birth of what was until then an untested concept in the Kingdom – a Bonded and Re-export Zone (BRZ) to facilitate value-creation via a more seamless flow of goods and cargo through the Kingdom’s premier port. The Kingdom’s first and the largest BRZ, LogiPoint was born formerly known as TUSDEER.

LogiPoint’s Leap As an indigenous, home-grown corporation, LogiPoint is inextricably linked to the evolving logistics ecosystem in Saudi Arabia. The company started out as an enabling platform for the logistics and supply chain industry in the Kingdom. It did this through providing the much needed bonded facilities and the value added services in the BRZ, but more than that it did so by acting

22 MARCH 2021

as a liaison office amongst the many stakeholders in the industry, which included the regulatory bodies, the port authorities, and the customers, to help provide a collective understanding of the changing needs of the industry. In this manner, LogiPoint acted as a catalyst for innovation, efficiency and growth across the industry, and evolved to become the leading provider of next-generation logistics solutions in the Kingdom.

Internally, LogiPoint have invested constantly in gaining an ever-deeper insight into the needs of their customers as well as the requirements of the industry service providers and stakeholders.

This has enabled them to anticipate the changing needs of the market and to develop strategies and build solutions which create greater value for their customers. LogiPoint have implemented automation and technology-driven innovations in business processes that make their services more customercentric, more efficient, more scalable and

thus more sustainable. These investments have also resulted in a significant increase in effectiveness, efficiency and productivity in their workflow. The company’s mission is guided by the principle that resilient supply chains are built through a flexible and dynamic relationship between the various stakeholders and that this is achieved through a constant commitment to transparency, reliability and second to none quality.

In addition to building and operating the Bonded and Re-Export Zone, a one million square meters logistics zone located within the premises of Jeddah Islamic Port, LogiPoint operates a network of integrated logistics parks and zones in the Kingdom, and thus by catering to an ever-expanding spectrum of clientele is helping transform the logistics landscape of the country.

The multi-award winning LogiPoint is a subsidiary of Saudi Industrial Services Co– SISCO, a joint stock company listed on the Tadawul, the country’s Stock Exchange.

Driving investments With the aim of expanding its portfolio across the Kingdom, LogiPoint plans to invest considerably in developing various new state-of-the-art Logistics Parks and Economic Zones, while completing the ongoing construction projects in The Logistics Park (Modon Jeddah) in 2021.

Warehousing The LogiPoint warehouses are fully equipped with sophisticated features such as: round-the-clock temperature monitoring with remote alert and battery back-up; redundant HVAC systems to ensure continuous operation; security systems with 24/7 video surveillance and alarms; epoxy-sealed floors to ensure dust-free environment; full GMP and GDP compliance; pest control procedures; quality control processes and many more.

Thanks to rapid industrialization in the Kingdom and an impressive track record of delivering reliable solutions of the future, the company is witnessing heavy demand for its warehousing solutions,

both for the ‘Pre-built’ and for the ‘Built-toSuit’ facilities. In addition, new buildings of about 55,000sqm are being built, which will be ready in 2022 and for which the bookings are already pouring in.

Cross-Border Gulf: One of the landmark new services that LogiPoint introduced last year was the cross-border multimodal movement for shipments into the GCC. Shipments originating in Europe and the Americas, and passing through the Red Sea, typically have a transit time of 8-12 days to finally reach their destination GCC ports in the Arabian Gulf.

These East-bound shipments from the Western origins can now be discharged in Jeddah and moved to their final destinations in the GCC via bonded trucking.

This helps reduce the transit time for the imports into the region by approximately 7-10 days and introduces unprecedented efficiencies for the regional logistics sector thus creating real value for the importers of fresh

produce and perishables as well as other time-sensitive cargoes. On the flip side, West-bound shipments originating from the East can now be discharged at the regional ports in the Arabian Gulf on the East, and moved under bond to Jeddah for onward multimodal movement to final destinations in Africa, Europe and the Americas.

The regional exporters can now avail these value-added services to serve their export markets in the MENA region and beyond when they use LogiPoint as their regional logistics hub. LogiPoint is constantly re-evaluating its value-added services for its clients to see how it can bring greater new efficiencies, cost savings and better profits to their business and the cross-border trucking product promises to be a game-changer in the region’s logistics.

Export Distribution Hub: Petrochemicals constitute the Kingdom’s dominant export, with hundreds of thousands of high-value containers exported annually to destinations all across the world. The highly competitive world of petrochemicals depends very heavily

Visionary Logistics: Empowering the Logistics and Supply Chain sector in the Kingdom The Vision 2030 transformation program is based upon growing inward investment to stimulate and diversify the economy and transform the Kingdom into a global hub connecting Asia, Europe and Africa. Its geographical competitive advantage based on accessibility to major emerging markets and important marine passages will play a key role in this transformation.

The transportation and logistics sector is large and strongly supported by state-led investment in rail, maritime, road, airport and logistics infrastructure.

Economic growth, population maturation and rapid urbanization are all factors driving Saudi Arabia to invest in the expansion of its transportation networks.

This includes the introduction of urban transport systems such as metros and buses, as well as inter-urban networks such as freight and high-speed railways, by working closely with leading global logistics companies via public-private partnerships (PPP). One aspect of the new approach is the increased promotion of special economic zones in parts of the country, creating industrial clusters with multi-modal

freight links to a range of international destinations.

Saudi Arabia’s goal is to strengthen the private sector’s role in transportation as it pushes to diversify its economy.

Vision 2030 aims to make the Ministry of Transport projects 20% self-financed, creating a significant scope for private participation in ports, airports, rail, and road infrastructure.

Logistics A key pillar of Vision 2030 is transforming the Kingdom into the go-to logistics hub for the region, capable of efficiently linking trade across Asia, Europe, and Africa. Saudi Arabia’s strategic location provides the Kingdom with a unique advantage over other nations, which could enable it to become a leading regional logistics hub.

Saudi Arabia’s logistics market is currently valued at US$ 25bn, making it the largest among the GCC nations.

It accounts for 55 percent of the total GCC logistics market and is ranked third-most attractive within emerging markets.

MARCH 2021 23

LOGIPOINT—COVER STORY

LogiPoint reinforces Jeddah as the preferred regional logistics hub Seamless and efficient trans-shipment is a major advantage for cargo consignments in the Kingdom and the region LogiPoint established the first bonded corridor connecting the Bonded and Re-Export Zone at Jeddah Islamic Port and King Abdulaziz International Airport (Jeddah) to facilitate the multimodal movement of cargo.

The trial was conducted on a shipment that arrived by sea freight to LogiPoint Bonded and Re-Export Zone at Jeddah Islamic Port, then shipped onward to its final destination in the Netherlands by airfreight through King Abdulaziz International Airport.

With the support of multiple stakeholders such as Saudi Customs and Jeddah Islamic Port and in line with ‘Vision 2030’ and the ‘National Industrial Development and Logistics Programme’ (NIDLP), the success of this shipment bodes well for the competitiveness of the region’s logistics infrastructure. It creates an efficient and cost-effective sea-air and airsea link to establish Jeddah as a preferred multi-modal transshipment hub.

“The bonded corridor facilitates trade for customers by providing a multimodal bonded access to regional target markets combining sea, land and air freight. It also gives Jeddah a significant advantage to compete in the transshipment cargo segment,” affirmed Farooq Sheikh, CEO,

24 MARCH 2021

LogiPoint.

LogiPoint is making continued and dynamic efforts to introduce international concepts and solutions towards enhancing logistics efficiency to attract foreign investors. Its strategic location and the world-class facilities have reinforced the position of Jeddah Islamic Port as a major and premier logistics hub.

Advantage of Jeddah Located in Jeddah Islamic Port, the busiest commercial port and leading gateway to the Kingdom, the one million sqm logistics hub provides services such as lead-logistics, trucking, warehousing, port services, turnkey supply chain integration from the port terminal to the distribution center, specialized handling, labeling and co-packaging.

The pioneering spirit continues to guide LogiPoint’s initiatives. For instance, realizing the importance of being e-commerce ready, LogiPoint have entered into strategic partnerships with e-commerce companies to become a part of their logistics infrastructure. Global e-commerce giants Amazon as well as the region’s leading e-commerce player, Naqel, have both signed up with LogiPoint to develop their supply chain solutions for the burgeoning Saudi market.

Last but not the least, the development of Logistics Zones and Parks is also a pioneering concept in the Kingdom; taking the lead once again, LogiPoint have already completed Phase 1 of their logistics park, the Jeddah Logistics Hub, and have begun handing over units to clients.

Pioneers

Innovative Services

LogiPoint are recognized as the pioneers in the conceptualization and introduction of bonded and re-export services in the Kingdom. “By closely interfacing with the industry stakeholders and other Government institutions like the Ports and Customs Authorities in addition to other logistics service providers, we have enabled and empowered the Saudi supply chain sector to bring about far-reaching changes in the manner we serve our local and international clients,” asserted Sheikh.

One of the landmark new services which LogiPoint introduced last year was the cross-border multimodal movement for shipments into the GCC. Eastbound shipments from the Western origins can now be discharged in Jeddah and moved via bonded trucking to their final destinations in the GCC. This helps reduce the transit time for the imports into the region by approximately 7-10 days and introduces unprecedented efficiencies for the regional logistics

LOGIPOINT—COVER STORY

sector. Similarly, West-bound shipments originating from the East can now be discharged at the regional ports in the Arabian Gulf on the East, and moved under bond to Jeddah for onward multimodal movement to final destinations in Africa, Europe and the Americas.

LogiPoint is constantly re-evaluating its value-added services for its clients to see how it can bring greater new efficiencies, cost savings and better profits to their business. “Regional exporters can now avail Cross-Border Gulf corridor and our Value Added Services to serve their export markets in the MENA region and beyond, when they use LogiPoint as their regional logistics hub,” observed Sheikh.

Strategic Alliances LogiPoint works extensively with industry stakeholders to explore new facilities and solutions for its clients.

These collaborations happen with local as well as international stakeholders and include leading international shipping companies, ports and customs authorities as well as Saudi airports. This is especially important for developing LogiPoint as a corridor for integrated seaair and air-sea-land shipments.

Some of LogiPoint’s planned alliances and joint ventures focus on International Freight Forwarders’ Networks which have thousands of members across the world, and which are looking to facilitate their members when it comes to doing business in and through the Kingdom.

The Way Forward: “We see our role as enablers of trade and commerce by becoming a leading logistics hub in the region, one which creates real and tangible value for our clients in every step of their supply chain logistics. We will look to expand our portfolio across the Kingdom by investing in themed logistics parks catering to specialized segments of the market. LogiPoint’s focus will remain on offering second-to-none, high quality products and services to our customers by investing in the capacity and the IT infrastructure we need to meet the needs of the future”.

He underlined the role the company has played in nurturing the logistics eco-system in the Kingdom: “LogiPoint’s contribution to the Saudi market has been remarkable. Twenty years ago, when it commenced operations, the bonded zone was an unfamiliar concept to the logistics industry in the Kingdom. Today, the industry is able to plan, develop and deliver highly sophisticated logistics solutions to the market because of the initiatives the company has been pioneering and introducing over the years. In this way, we have attracted extensive new investments into the Kingdom, enabling the supply chain and logistics industry to offer cost-effective and efficient services to the market. ” “We continue to see our role as one of making active contribution to the ‘Saudi Vision 2030’ through enabling the logistics and supply chain industries,” emphasized Sheikh.

on speedy delivery of large volume shipments. In the past, this had proven to be a challenge, and the Petrochemicals majors had had to rely on international transit hubs to maintain proximity to their end customers.

In a major milestone accomplishment, LogiPoint recently concluded a key agreement with Aramco Chemicals Company (ACC) to become their costeffective and scalable international logistics hub within the Kingdom. This was achieved through re-engineering the export process with extensive support from Saudi Customs, Saudi Ports Authority - MAWANI, and Jeddah Islamic Port.

The agreement helps eliminate the need to use an intermediary overseas hub for storage and onward shipping of ACC’s cargoes thus enhancing their ability to provide cost-effective solutions to the end customer. The cargo is now dispatched directly to the target market, ensuring greater efficiency through reduction of the export processing time from one week to one day, thereby increasing the demand and appeal for Saudi products.

Sea/Air and Air/Sea — Multi-Modal Transport: The central and strategic location of the Kingdom lends itself to Sea-Air and Air-Sea logistics. Realizing Saudi Arabia’s immense potential as the multimodal hub through which a seamless Sea-Air and Air-Sea solution could be offered, LogiPoint collaborated with the regulatory bodies and the industry stakeholders to build a Bonded Multimodal Corridor between the Jeddah port and the Kingdom’s airports.

Following the initiatives taken by LogiPoint, it is now possible in KSA to import a shipment by sea in the first phase, move it under bond to the desired airport, and then dispatch by air freight to its final destination.

Similarly, air-freight imports can be moved to the LogiPoint Bonded and Re-Export Zone for consolidation before being shipped out by sea. This successful multi-modal transportation model is an

MARCH 2021 25

LOGIPOINT—COVER STORY

LogiPoint enters strategic partnership with Aramco for petrochemicals exports from Kingdom

important and ingenious development in putting the KSA on the world logistics map as a strategically located multimodal logistics hub.

In a major milestone accomplishment, LogiPoint recently concluded a key agreement with Aramco Chemicals Company (ACC) to become their costeffective and scalable international logistics hub within the Kingdom. This was achieved through re-engineering the export process with extensive support from Saudi Customs, Saudi Ports Authority, and Jeddah Islamic Port.

The agreement helps eliminate the

The COVID-19 pandemic has brought about a seismic and irreversible shift in global business trends. Part of that shift is the unprecedented boost for the e-commerce and the express delivery segments. Both these segments rely heavily on timely delivery of orders via efficient, error-free, and high-speed logistics. LogiPoint recognized the need for a next generation logistics infrastructure built with the specific needs of these two industries in mind and set the ball rolling even before the world found itself grappling with the fallout from the pandemic.

This is how LogiPoint introduced the Bonded Express Facility to cater to the express delivery industry and the e-commerce segment. The LogiPoint facility is the first of its kind at a Saudi Port and is dedicated to ensuring the speedy clearance and fulfillment of express parcels and e-commerce shipments. Through policies and processes designed with e-commerce needs in mind and an infrastructure built around the design, the facility handles and facilitates inbound and outbound

26 MARCH 2021

need to use an intermediary overseas hub for storage and onward shipping of ACC’s cargoes thus enhancing their ability to provide cost-effective solutions to the end customer.The cargo is now dispatched directly to the target market, ensuring greater efficiency through reduction of the export processing time from one week to one day, thereby increasing the demand and appeal for Saudi products.

Bonded Express Facility:

LOGIPOINT—COVER STORY

“We see our role as enablers of trade and commerce by becoming a leading logistics hub in the region” ‘Saudi Vision 2030’ will be enabling the logistics and supply chain industries as well as the Saudi Exports facilitation.

Farooq Shaikh, CEO

express shipments by sea, air and land.

It also enables the e-retailers and the online platforms to reliably serve their target markets in Saudi Arabia and in the rest of the Middle East.

These initiatives have already led to signing of groundbreaking contracts with global e-commerce giants Amazon and with regional and national industry leaders like Aramex and Naqel among others.

Value Added Services: Over the years, LogiPoint have been offering a wide array of Value-Added Services (VAS). These include short-term storage, packing, co-packing, labeling, bundling, and distributing goods, duty deferment (important especially when VAT has become such an important part of costing for a supply chain), and clearance and delivery support.

There is also the Reefer Village, which boasts a Reefer Container Yard with 240 plug-in points, reefer cross-stuffing stations, and an ever-expanding fleet of trucks and gensets.

With an eye to the future, LogiPoint have invested into becoming operators of Logistics Parks and Economic Zones in the Kingdom and beyond. Jeddah Logistics Hub in Modon 1, Jeddah and the 314,000 sqm Logistics Park, South Jeddah in Khomrah are two examples of such investments, which will help create thousands of jobs directly and indirectly.

Additionally, there are exciting new projects in the pipeline, which will see

Rayan Albakri, Deputy CEO

LogiPoint expand their footprint across the Kingdom through strategically located new Logistics Parks and Economic Zones.

LogiPoint is committed to developing Jeddah and the Kingdom into the region’s foremost multi-modal logistics hub serving the global trade. In terms of life cycle, LogiPoint is only at the beginning of its journey, and is very wellpoised today to play an ever-greater role in nation building and development.

View From the Top Farooq Shaikh is the CEO of LogiPoint and laid out the way forward for the company clearly: “We see our role as enablers of trade and commerce by becoming a leading logistics hub in the region, one which creates real and tangible value for our clients in every step of their supply chain logistics. We will look to expand our portfolio across the Kingdom by investing in themed logistics parks catering to specialized segments of the market. LogiPoint’s focus will remain on offering second-to-none, high quality products and services to our customers by investing in the capacity and the IT infrastructure we need to meet the needs of the future”.

He underlined the role the company has played in nurturing the logistics eco-system in the Kingdom: “LogiPoint’s contribution to the Saudi market has been remarkable. Twenty years ago, when it commenced operations, the bonded zone was an unfamiliar concept to the

logistics industry in the Kingdom. Today, the industry is able to plan, develop and deliver highly sophisticated logistics solutions to the market because of the initiatives the company has been pioneering and introducing over the years. In this way, we have attracted extensive new investments into the Kingdom, enabling the supply chain and logistics industry to offer cost-effective and efficient services to the market.”

Dovetailing Saudi Vision 2030 LogiPoint continue to see their role as one of making active contribution to the ‘Saudi Vision 2030’ through enabling the logistics and supply chain industries as well as the Saudi Exports facilitation.

LogiPoint is committed to enable Saudi non-oil Exports and the logistics in the region by going the extra mile in designing unique and innovative solutions for the logistics industry.

“We work intimately with our clients to understand their needs, requirements and pain-points. Through this interface we identify, examine and build organic solutions that facilitate streamlined and seamless work processes,” explained Rayan Albakri Deputy CEO at Logipoint.

“Service, commitment, involvement and facilitation are part of the LogiPoint DNA and through our engagement with our clients, with industry stakeholders and with the help of our resources and experience, we excel in offering solutions that enable the smooth passage and timely delivery of consignments,”he asserted. n

MARCH 2021 27

KING SALMAN ENERGY PARK (SPARK)

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ing Salman Energy Park (SPARK), the Middle East’s only fully integrated energy hub, recently welcomed two new strategic investment in the oil and gas sector, TAQA and AMCO. “SPARK sits at the heart of the energy market, offering a world-class ecosystem that facilitates the growth of our tenants’ businesses and brings sustained value to our wider communities. SPARK is set to be a fully integrated city, bringing together major national and international companies and fuelling economic growth and job creation,” commented Saif AlQahtani, CEO, SPARK. SPARK is the new megaproject being constructed and located between Dammam and Al-Ahsa in the energyrich Eastern Province of Saudi Arabia.

This project is being developed, operated and managed by Saudi Aramco in partnership with the Saudi Authority for Industrial Cities and Technology Zones.

SPARK signs tenant agreements with TAQA and AMCO

Anchor tenant

SPARK is set to be a fully integrated city, bringing together major national and international companies

As an anchor tenant, TAQA will expand its local operations with the TAQA Industrial Park at SPARK, strategically located close to their primary clients.

TAQA will establish a brand-new facility that will include oilfield services, a specialty facility for engineering and manufacturing, and a wireline and perforation centre of excellence.

The facilities will be constructed in two phases starting in the second quarter of 2021, with the design and developmental planning stages having already commenced.

The integrated centre of operations at SPARK allows TAQA more efficient and effective utilization of resources and increased profitability through cost savings.

in the Kingdom,” noted Khalid Nouh, CEO, TAQA. AMCO is also investing over SAR 260mn (US$ 69.3mn) in a new center in SPARK. AMCO’s plans include the development of facilities to enable the manufacturing and production of steel pipes, valves, pumps, turbines, and machine and rotary equipment.

The agreements with TAQA and AMCO continue to pave the way toward an integrated energy ecosystem at SPARK. Both of these investments will accelerate the consolidation of the energy value chain being established at SPARK, in line with Kingdom-wide goals to catalyze economic development.

Cutting-edge technology “With our plans for future acquisitions focused on cutting-edge technology and innovative solutions, we further cement our alignment with Vision 2030 and the government’s drive to diversify and localize services and manufacturing

28 MARCH 2021

SPARK As a premier producer and exporter of oil and holding vast reserves, the demand for energy-related goods and services in Saudi Arabia and throughout the energy-rich region is high and continues to expand. King Salman Energy Park (SPARK) is being developed to capture the

full economic value from such demand — localizing value creation through dedicated industrial development, as part of the Kingdom’s Vision 2030.

SPARK will become a 21st century ecosystem for the energy sector, a vibrant international industrial community built on excellence and innovation, and at its heart a world-class workforce. It is also expected to contribute more than US$ 6bbn to the Kingdom’s GDP and create up to 100,000 direct and indirect jobs at the maturity stage.

SPARK is attracting industrial investors across five strategic sectors: Upstream, Downstream, Petrochemicals, Power, Water and Wastewater. From their SPARK-based facilities, investors in these sector-related supply chains will fill the massive gap for locally produced goods and gain a lasting competitive advantage.

SPARK will also cultivate and nurture small and medium-sized enterprises, and stimulate innovation and entrepreneurship in the energy sector, significantly contributing to a more diversified economic landscape. n

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GLOBAL & GCC SUPPLY CHAIN 2020 REVIEW

Bringing Automation on the front burner ACME in the forefront of providing end-to-end automation solutions for the regional logistics industry

Embracing automation and digitalization is increasingly perceived as the way forward in the present context to ensure viability and feasibility of logistics operations.

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imply stated, logistics automation is the process of harnessing computer software or automated machines to improve the efficiency of logistics management.

With a growing trend in pandemic times for (human) contactless operations and with social distancing the new norm, more and more companies are increasingly gravitating towards automation and mechanization of their logistics and warehouse functions.

This refers to the wider tasks undertaken by supply chain management systems operated within a warehouse or distribution center. Identifying products through barcode or RFID technologies, automatic notification and real-time updates of freight are some features provided by logistics automation.

Logistics automation process can help make a company more efficient and achieving better profit margins.

Like the use of Automated Storage and Retrieval Systems (ASRS) to move products into and out of storage without human supervision or intervention.

There are other important benefits of bringing logistics automation within warehouse or distribution channels.

Global Supply Chain engaged with Navin Narayan, Founder-CEO, ACME Intralog, a leader with an impressive track record in this sector, for the lowdown on the latest in the logistics and supply chain automation arena.

Global Supply Chain (GSC): To begin with, what are the core activities and specializations of the ACME Group?

30 MARCH 2021

GLOBAL & GCC SUPPLY CHAIN 2020 REVIEW

Navin Narayan (NN): ACME has three major verticals–Industrial automation components, Factory Automation and Warehouse Automation. We are the largest warehouse and factory automation solution provider based in the GCC that provides comprehensive end-to-end automation solutions starting from design to manufacturing and the installation of material handling solutions as well as a dedicated 24/7 after-sales support team.

GSC: How is ACME evolving in the shadow of Covid-19? How have your priorities and directions changed during the pandemic?

NN: With the advent of the pandemic, we have seen an increased focus on automation. Previously, businesses would attempt to increase production or delivery capabilities by using additional manpower.

This would usually be inefficient and uneconomical and under the current circumstances, not viable and non-

implementable. Businesses have now begun to turn to automation to improve profitability and increase efficiency. We have increased our solution portfolio to cater to these needs for both SMEs as well as large businesses in the region.

GSC: In these times do you sense of greater gravitation by companies and LSPs (Logistics services providers) towards automation / digitalization?

NN: We see manufacturing companies, e-commerce as well as retail businesses investing in automation to cater to the

Leading operators are now offering an omnichannel experience which cannot be achieved with merely investing in the front end. A lot of change has to be configured at the back end.

dramatic change in order profiles as companies turn their focus to B2C as well as omni-channel business models.

GSC: Do you see a greater focus and orientation towards technology going forward?

NN: Businesses have understood the need to invest in technology to stay ahead of competition. Customers expect quick and accurate deliveries.

This is pushing companies to focus on improving their operations behind the scene.

Most leading operators are now offering an omni-channel experience and this cannot be achieved with merely investing in the front end. A lot of change has to be configured at the back end to ensure that customer expectations are met. Automation technology in intralogistics is the need of the hour.

GSC: How is technology and automation meeting working / operational protocols in these pandemic times?

MARCH 2021 31

GLOBAL & GCC SUPPLY CHAIN 2020 REVIEW

NN: One of the primary advantages of investing in hard automation technologies is that they reduce the need of having a large manpower pool. With the current restrictions brought about by the pandemic, businesses that invest in automation technologies are able to scale up and provide timely accurate order fulfillment at a fraction of the cost, without the uncertainty associated with manpower availability.

Mandatory social distancing on the shop-floor is a lot easier when a large part of the process is automated.

GSC: What are some new technologies that have emerged in recent times that are essentially a game changer for LSPs in Covid-19 times?

NN: LSPs are looking at order fulfillment solutions that help in reducing costs per pick, improving picking accuracy as well as reducing fulfillment time.

Though traditionally, LSPs relied on WMS driven soft automation, there is a greater emphasis lately on solutions such

as automated sortation systems, good-to-person solutions as well as ASRS systems.

These have helped them reduce the manpower needs and reduce disruptions due to Covid-19 safety regulations.

GSC: What are your short and / or long-term expansion plans for the region?

NN: Our current plans of expansion include setting up our life cycle service and maintenance office in Saudi Arabia as well as opening a sales office in Germany to bring us closer to our customers in the EU. Both these regions are active markets for ACME and we expect to be on the ground during 2021.

GSC: What opportunities in store and challenges do you foresee going forward?

NN: One of the primary challenges of the industry is the fact that new technologies are developed and adopted at a very fast pace. We will invest substantially in R&D to keep abreast of the technology curve and to ensure our solutions offering stays relevant.

GSC: An E-commerce surge as we are witnessing now is clearly a boon for your business. Is that the case with the ACME Group? Please elaborate.

NN: A large part of our current order book involves solutions that are designed to cater to E-commerce fulfillment. With the sudden surge in adoption of e-commerce in the region, businesses were left on the back-foot.

As traditional distribution centers were built around the traditional model, many have had to retool existing facilities with new technologies.

32 MARCH 2021

GSC: What trends do you foresee in intra-logistics automation for the region?

NN: We see a larger uptake for automated solutions in intralogistics.

SMEs are seeing the value of small-scale vertical carousel and shuttle technologies, especially since they provide for a very quick RoI of one to two years. There is also an increased focus on automated pallet storage solutions such as AS/RS and shuttle technologies.

With added focus on omni-channel experience, there is going to be more investment in automated micro distribution solutions. We are already seeing many businesses putting money into this as they build up their fulfillment capabilities for the future.

GSC: Are you planning to take on new partnerships and representations?

NN: We are actively working with partners to bring integrated solutions such as AGVs (Automated Guided Vehicles), robotics and cobots to the region. Our intention is to provide end

We have seen an increase of over 30% in revenue between 2019 and 2020. Last year was the most successful year for ACME. to end solutions using new technologies in the world of material handling. We will be announcing some of these new partnerships shortly.

GSC: How big is the ACME foot print in the pharma / food / cold chain sector?

NN: A substantial part of our business focus is the pharmaceutical industry as well as food production and distribution.

We provide End-of-Line manufacturing automation solutions as well as warehouse automation solutions to producers as well as distributors in the region.

GSC: How did ACME currently fare in

2020 and how does that compare with 2019?

NN: In terms of numbers, we have seen an increase of over 30% in revenue between 2019 and 2020. Last year was the most successful year for ACME. This has had a lot to do with the increased solution portfolio that we now have. Our intention is to continue adding to our portfolio in order to increase the breadth of our offerings.

GSC: What is your outlook for 2021?

NN: 2021 looks very positive and we are optimistic about the remainder of the year. At the moment our order book looks promising. We have a wide variety of projects that will go live, including a fully automated sortation facility for a leading hypermarket group, fully automated distribution centers for one of the largest retailers as well as end of line robotic palletisation systems for one of the largest dairy producers in Saudi Arabia.

We look forward to working on a few more exciting projects this year. n

MARCH 2021 33

EMIRATES GROUP

Emirates Group signs MoU with Dubai’s RTA Agreement between the two Government entities to strengthen cooperation in the area of asset management

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he Emirates Group and Roads and Transport Authority (RTA) have today signed a Memorandum of Understanding (MoU) to collaborate and share best practices that enhance and create greater efficiencies across all asset management related activities for both organizations.

Mutual cooperation and open exchange between the Emirates Group and Roads and Transport Authority includes knowledge sharing in areas of asset sustainability, optimizing asset lifecycle utilization and enhancing returns on assets, the two stakeholders asserted in a joint press statement.

The MoU was recently signed by Ali Mubarak Al Soori, Executive Vice President-Chairman’s Office, Facilities & Project Management and Non-Aircraft Procurement & Logistics for Emirates Group, and Nasir Bu Shehab, CEO, Strategy and Corporate Governance Sector, RTA.

Prime capabilities “Emirates Group has world-class expertise and capabilities in asset

34 MARCH 2021

Ali Mubarak Al Soori

management through our local and global footprint, and we hope to further our cooperation with the RTA on matters of mutual interest in the areas of training, benchmarking tools, and frameworks within internationally recognized standards,” affirmed Al Soori.

This agreement follows the Dubai government’s directive for government entities to leverage the expertise and efficiencies of semi-government and private organizations. This agreement will also support the Government Resource Planning Systems (GRPS), which has been implemented across different governmental departments to boost resources and knowledge, as well as consolidate best practices and policies that provide greater operating efficiencies.

The Emirates Group is the first non-government organization to pen a partnership under the GRPS directive, and the collaboration with RTA will provide both organizations and their employees with shared knowledge, systems and frameworks in order to

Nasser Bu Shehab

streamline operations, extract efficiencies and reduce costs.

Sustainability “Dubai’s Roads and Transport Authority (RTA) strives to achieve the sustainability of RTA’s key assets to ensure the continuity of service delivery. This is particularly relevant as RTA owns extensive assets and properties such as roads, bridges, tunnels, metro, buses, taxis, and marine transport means among others,” commented Bu Shehab.

“Assets are considered the true capital of the economic sector. We have therefore got to keep assets protected & sustained, and improve their life cycles on a par with the top global standards. We will be in a better position to achieve these targets through acquaintance with the practices of our counterparts in this regard,” added Bu Shehab.

Joint activities between both organizations are slated to commence this month. n

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ETIHAD RAIL

Etihad Rail seals Environmental Preservation Agreement with the Government of Fujairah Fujairah Crown Prince witnesses the signing of this deal to protect the Environment in the historical Al Bithnah Area

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H Sheikh Mohammed Bin Hamad Bin Mohammed Al Sharqi, Crown Prince of Fujairah, recently witnessed in the Al Rumailah Palace, the signing of an agreement between Etihad Rail, Emirates NatureWWF, Fujairah Environment Authority and Fujairah Adventures, to implement an environmental conservation and habitat rehabilitation project in Al Bithnah, Fujairah.

The project covers three main pillars including local community support and development, environmental protection and biodiversity conservation, and the preservation of the UAE’s natural heritage.

HH Sheikh Mohammed stressed the importance of preserving biological ecosystems and safeguarding the natural heritage of the UAE, through collaboration between the government, private sectors and local communities, in addition to the implementation of local and national environmental protection legislation.

CSR initiatives Etihad Rail is working to ensure that rail construction activities do not affect residents’ quality of life but rather enhance it by opening up new opportunities. These are in addition to the job opportunities created by the new vital rail sector and ecotourism opportunities that will follow the development of the UAE’s National Rail network.

The agreement was signed by Mohamed Almarzooqi, Executive Director, Rail Relations, Etihad Rail; Laila Mostafa Abdullatif, Director General at Emirates Nature-WWF; Eng. Ali Qasim, Steering Committee Member of the

36 MARCH 2021

The delegation visits Fujairah’s historical Al Bithnah area.

Fujairah Environment Authority in the presence of officials from the Fujairah Government, Etihad Rail and Emirates Nature-WWF. “Through this project our aim is to protect, restore and sustainably manage ecosystems to meet biodiversity and societal goals,” remarked Laila Mostafa Abdullatif.

Well on track Etihad Rail, established in June 2009, has successfully completed Stage One of the network. Stage One is fully operational and was delivered on schedule and within budget. The route spans 264km, transporting granulated sulphur from

sources at Shah and Habshan to the export point at Ruwais.

Stage Two links the United Arab Emirates and Saudi Arabia from Fujairah Port to Ghuweifat through Mussafah, Khalifa Port and Jebel Ali Port. Built to international standards, Etihad Rail’s state-of-the-art network will span approximately 1,200 km, acting as a catalyst for economic growth and sustained social development.

Upon completion, the railway will redefine logistics and transport in the region, providing a modern, safe, efficient and sustainable mode of transport that will connect all regions of the UAE to its neighbouring GCC countries, a press release concluded. n

TECHNOLOGY

EPG introduces new breakthrough all-in-one app EPG|ONE is customized for workflows and digital documentation

The EPG|ONE mobile application from EPG (Ehrhardt Partner Group) is an all-inone solution that provides digital, centralized and comprehensive documentation of a wide variety of workflows and processes in many different fields.

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central and key component of Logistics 4.0 is the digitalization of processes, which means no longer working on paper.

The newly launched EPG|ONE is used in logistics for incoming goods inspection, quality control and loading, as well as for service and inspection, and for outgoing goods. The app is intuitive to use and highly customizable. Internal documentation processes, checklists and work orders can be prepared, managed and used without having to resort to paper printouts and lists, the company revealed in a press communiqué.

Logistics operators whether for warehouse logistics, transport management, air freight or rail transport, deal with a lot of documentation processes on a daily basis, from incoming goods inspection, loading and shipping to vehicle inspections and service.

These processes often still involved paper-based checklists for completing inspections and checks. This manual approach is time-consuming and has high rates of error from typing and mistakes. Employees also have to go through a lengthy process to meet documentation requirements, such as for incoming goods inspection.

Transport damage Transport damage and damage to goods has to be documented on accompanying documents, which are signed, registered, scanned, filed, emailed and archived. The

work steps end up being time-consuming and have a negative impact on the efficiency of logistics operators.

Digitalization has arrived for process and workflow documentation.

“Companies that are going increasingly digital are laying the foundations for process automation that is as comprehensive as possible, which significantly reduces sources of error and creates transparency across all process steps,” explained Gerold Schmidt, Managing Director, icotec (a member of EPG).

The high-performance EPG|ONE app is the solution when it comes to digitalizing manual processes in a wide range of industries and sectors. The app clearly present all documentation processes Users can prepare each job or process intuitively and easily themselves.

As EPG|ONE has templates and building blocks to create checklists and workflows at any level of detail.

Photos can also be integrated into the digital documentation process. If defects or damage are found during checks, they can be recorded, photographed, signed and sent to the responsible person by email within a few seconds. All the documentation can also be exported for other use and saved locally.

Mobile Interface EPG|ONE is the mobile interface to EPG’s Supply Chain Execution Suite and can be easily linked up, to the EPG|LFS

warehouse management system, the EPG|TMS tour management system and the EPG|DOCK dock management system.

Any third-party systems, such as ERP solutions and TMS systems, can also be connected, so that users can provide data to EPG|ONE directly from their existing systems for documentation processes, including from outside logistics.

The app has features and offers great potential via its digital checklists in areas such as service and inspection as well, for example. The app works online and offline.

Check by Voice Hands free/eyes free The demand for flexible and efficient solutions is becoming ever greater in the dynamic market environment of logistics.

Intralogistics processes have to get faster and faster - while at the same time becoming more transparent and agile.

Digital process and workflow documentation can be even more efficient in combination with the Lydia Voice smart voice assistant. From orders through checks and logs to checklists, you can use EPG|ONE with intuitive voice control.

Hand movements to use the mobile device are eliminated, so employees have both hands free and can concentrate fully on the work process. The app is available on Android and iOS, the press statement concluded. n

MARCH 2021 37

LOGISTICS SERVICES PROVIDERS—EXPRESS TRANSPORTATION

Logistics companies rack US$ 300bn in revenue amid e-Commerce boom in 2020 – Report Delivery businesses continue to maintain momentum in 2021

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ata analyzed by the ParcelTrackr (Trackr) App team reveals that in spite of the challenging economic environment, four leading logistics companies–UPS, DHL, USPS (United States Postal Service), and FedEx – report over US$ 300bn in revenue for the financial year 2020.

The data was analyzed from official press releases from the top four selected companies to find out what impact the pandemics outbreak and e-commerce boom have made on the logistics sector, and provide an outlook for 2021 and beyond.

Logistics companies outperform their earnings guidance From the data, UPS reports the highest revenue increase of 14.20%, resulting in US$ 84.60bn. DHL’s revenue reaches a staggering US$ 80.41bn, followed by USPS that has also experienced a boost of nearly US$ 2bn (from US$71.15bn in 2019 to US$73.10bn in revenue), leaving FedEx with US$ 69.20bn behind.

However, the companies had to also overcome the challenges brought by the pandemic and the surge in e-commerce.

The most common issues highlighted by industry leaders were disruptions in the workforce, fast changes in the marketplace and the urgent need for supplements for safety precautions.

Volume surge Even so, USPS states that the package volume has increased by almost 1.2bn pieces, or 18.8% compared to 2019, which reflects a clear shift in consumer behavior.

Although the future is still unclear, companies project a positive outlook for 2021 and beyond. DHL and UPS, in particular, have been actively participating

38 MARCH 2021

in the distribution of Covid-19 vaccines worldwide, aside from their daily activities.

“As more and more logistics-related tasks are shifting online, one of the biggest challenges in the next 10 years will be the expansion of logistic centers and their ability to adapt,”affirmed Ernestas Petkevicius, Co-Founder, Trackr app.

“We have already witnessed leading carriers reporting record-breaking numbers, and this is likely the direction that e-commerce-related sectors will continue to follow while having to deal with constantly arising new challenges,” he added.

Companies project a positive future outlook Given the pandemic-related rise of e-commerce, the logistics industry seems to be going through its golden age that will likely continue in 2021 and beyond.

Both local and cross-border deliveries have never been so crucial to people’s everyday lives, considering not only the shipment of various goods but also playing an essential role in coping with

this global health crisis.

The most common issues highlighted by industry leaders were disruptions in the workforce, fast changes in the marketplace and the urgent need for supplements for safety precautions.

USPS also states that the package volume has increased by almost 1.2bn pieces or 18.8% compared to 2019, which reflects a clear shift in consumer behavior.

However, the numbers show that selected logistics companies managed to deal with most of these issues and allocate both physical and financial resources accordingly. For instance, in 2020, UPS’s operating profit reached US$ 7.8bn while DHL Group has outperformed their earning guidance of US$ 4.96bn by improving operating profit (EBIT) to US$ 5.85bn.

Moreover, since the beginning of the pandemic outbreak, DHL Group’s free cash flow has increased to US$ 3.01bn which exceeded last year’s result by a whopping 188.35% as well as surpassed the market estimate. Meanwhile, UPS has reported a free cash flow of US$ 5.1bn, once again leading the quad squad.

No signs of e-commerce boom slowdown Although the future is still unclear, raising trends and predictions can already shape the image of further development of the logistics sector and e-commerce industry as a whole. Businesses will continue to feel the pressure of fulfilling orders faster while trying to stay on top of their quality standards.

“As more and more logistics-related tasks are shifting online, one of the biggest challenges in the next 10 years will be the expansion of logistic centers and their ability to adapt,”observed Petkevicius. n

SOHAR

SOHAR reveals its 2020 CSR Report SOHAR Port and Freezone recently published its Corporate Social Responsibility report for the year 2020, which outlines the company’s activities to support society and the environment, in accordance with its sustainable strategy plan.

A

Mohsin Al Jabri

t the SOHAR Port and Freezone, Corporate Social Responsibility is perceived as the key to a successful future. The CSR effort is built on the three pillars of CSR: Sustainability, Commitment and Transparency, according to the corporate CSR preamble.

To this end, an ambitious programme has been unveiled for future development that must work to the following core criteria.

Firstly, to promote the effective, safe and efficient handling of vessel traffic, to ensure nautical and maritime order and safety and to serve as the competent, major port in the region.

Protecting the environment To develop, construct, manage and operate the port and industrial area in the Sohar region sustainably, in the broadest sense

of the word. This means preserving the environment, benefitting communities and preserving the quality of life in those communities into the future.

To pursue industrial development to international quality standards based on a model that is economically sound and committed to continued future growth. This takes into account the need to preserve for the future community interests such as health, community values, environmental protection and an attractive working environment.

Challenges “During the pandemic the last year we faced several challenges. We were successful in mitigating the effects, together with the support and collaboration of concerned entities, while simultaneously carrying out various activities on other fronts to support segments of society and to protect the environment,”affirmed Mohsin Al Jabri, Executive Manager, Corporate Affairs, SOHAR Port and Freezone.

The annual CSR report is divided into

five sections. These included a focus on activities related to combating the effects of the pandemic and the provision of support to the local community. Other sections comprise of sports initiatives to promote a healthy lifestyle, as well as the support of cultural and environmental programmes.

Social interface “SOHAR seeks to strengthen its social efforts, in line with a sustainable strategy that aims to yield significant results in the long run. Therefore, our focus areas are divided into several sectors that cover society, education, health, entrepreneurship and the environment,”he added.

These activities are implemented either as part of initiatives launched by SOHAR or as a joint effort with other entities that share the same objectives.

Through the implementation of these programmes, SOHAR believes it can strengthen cooperation with all its shareholders and tenants, in turn further enhancing the desired impact of the company’s social activities. n

MARCH 2021 39

Etihad Airways demonstrates resilience in the face of the pandemic ETIHAD AIRWAYS: 2020 PERFORMANCE

Carrier reported 66% surge in cargo revenues in 2020 over 2019

E

4.2mn passengers carried in 2020 with seat load factor of 52.9%; Network capacity reduced by 64% to 37.5bn ASKs in wake of pandemic Mohammad Al Bulooki and Hanan Al Yafei sign the MoU.

tihad Airways has announced its financial and operating results for 2020, recording a 76% fall in passengers carried throughout the year (4.2mn, compared to 17.5mn in 2019) as a result of lower demand and reduced flight capacity caused by the unparalleled global downturn in commercial aviation.

As a consequence of the Covid pandemic and ensuing flight and travel restrictions, total passenger capacity was reduced by 64% in 2020 to 37.5bn Available Seat Kilometres (ASKs), down from 104bn in 2019, with the seat load factor declining to 52.9%, 25.8 percentage points lower compared to 2019 (2019: 78.7%).

The airline recorded US$ 1.2bn passenger revenues in 2020, down by 74% from US$ 4.8bn in 2019, due to fewer scheduled services and drastically

40 MARCH 2021

fewer people travelling. A contributing factor to this was the total suspension of passenger services into and out of the UAE from end of March until early June 2020 to limit the spread of Covid, in line with a UAE government mandate.

More than 80% of total passengers carried in 2020 were flown during the first three months of the year, demonstrating the precipitous drop in demand as the global crisis deepened over the course of the year.

Cargo operations The airline’s cargo operation, on the contrary, recorded an extremely strong performance, with a 66% increase in revenue from US$ 0.7bn in 2019 to US$ 1.2bn in 2020, driven by huge demand for medical supplies such as

Personal Protective Equipment (PPE) and pharmaceuticals, paired with limited global airfreight capacity. Cargo yield saw an improvement of 77%.

Operating costs meanwhile decreased by 39% year-on-year, from US$ 5.4bn in 2019 to US$ 3.3 billion in 2020, due to a combination of reduced capacity and volume-related expenses, as well as a focus on cost containment initiatives.

Overall, this resulted in a core operating loss of US$ 1.70bn (2019: US$ 0.80bn) in 2020, with the EBITDA turning to negative US$ 0.65bn (2019: positive US$ 0.45bn).

Witnessing growth Prior to the pandemic, Etihad was ahead of transformation targets set in 2017, having registered a 55% cumulative

ETIHAD AIRWAYS: 2020 PERFORMANCE

Etihad Airways and Hub71 sign MoU Etihad to collaborate with Abu Dhabi’s global tech ecosystem to pursue innovative projects alongside expanding startup community Etihad Airways recently signed a memorandum of understanding (MoU) with Hub71, Abu Dhabi’s global tech ecosystem and a flagship initiative of Ghadan 21, to support the expansion of entrepreneurs innovating in Abu Dhabi.

Following the MoU signing, Etihad will become the official airline partner of Hub71 which will offer more than 100 global startups within its tech community special rates and access to a dedicated booking platform to simplify their travel needs.

“Together, both entities will play a vital role in supporting the Emirate’s development by investing in business, innovation and people. The MoU will support the government’s efforts in diversifying the economy by rewarding businesses who choose to develop innovative technologies in Abu Dhabi,” said Mohammad Al Bulooki, Chief Operating Officer, Etihad Aviation Group.

Partnership Through the partnership, Etihad will tap into Hub71’s dynamic, fast-growing community and global network of partners to engage with its startup founders and entrepreneurs to launch innovation-driven activities. The airline will also explore mentorship opportunities, workshops, and community events.

“Technology and innovation play a key role in supporting the restart of the aviation industry during the Covid

pandemic. Etihad looks forward to working with Hub71’s global pool of innovators to actively source, support and enable the rapid trial and production of promising solutions for the aviation industry,” added Al Bulooki.

“As the world prepares to open up, global connectivity will be vital for our growing community of startup founders to be in a position to export their innovative products and services to new markets,” remarked Hanan Al Yafei, Chief Executive Officer, Hub71.

Driving technology “Our strategic partnership with Etihad Airways reflects the value we place in unlocking global opportunities from Abu Dhabi, and together we will help grow technology-driven businesses that can sustain the aviation industry with bold new ideas and innovations,” he continued.

The MOU was signed by Mohammad Al Bulooki, Chief Operating Officer of Etihad Aviation Group, and Hanan Harhara Al Yafei, Chief Executive Officer of Hub71.

Hub71’s tech community expanded from 35 startups to 102 in under two years, representing 191 per cent growth, and raised AED 185mn (US$ 50.4mn) for startups in 2020. Abu Dhabi’s global tech ecosystem now includes startups from Israel, South Korea, Czech Republic and Nigeria, which joined in December 2020.

improvement in core results by end-ofyear 2019. This momentum continued into the start of 2020, with a record first quarter (Q1) that showed year-on-year improvement of 34%.

The airline is continuing to target a complete turnaround by 2023, having accelerated its transformation plans and restructured the organisation during the pandemic into a leaner and more agile business.

cash-flow, we maintained liquidity by focusing on cost control, maximising cargo revenue, enhancing our charter capabilities and raising innovative credit facilities such as the world’s-first sustainability-linked transition sukuk,” remarked Adam Boukadida, Chief Financial Officer.

Bounce back

In 2020, Etihad established Etihad Wellness, an industry-leading programme to ensure wellbeing at every stage of the customer journey and provide greater peace of mind when travelling.

A key service differentiator for the airline, Etihad Wellness is championed by specially-trained Wellness Ambassadors who are available 24/7 to provide

“As the world’s first airline to vaccinate all our operating pilots and cabin crew against Covid, we are ready to welcome back travellers to experience best-in-class travel with Etihad Airways,” noted Tony Douglas, Group Chief Executive Officer.

“Despite significant pressures on our

Putting health and wellbeing first

essential travel health information and care pre-flight through a webchat on etihad.com, at the airport, and on board.

Leading the way for sustainability In 2020, despite the challenges of Covid, Etihad continued to pave the way for more environmentally friendly travel by implementing key sustainability initiatives.

In January 2020, the airline welcomed a unique, green-themed Boeing 787 into the fleet as the flagship aircraft of its Greenliner programme. As part of a partnership with Boeing, the aircraft serves as a flying testbed for sustainable practices such as highly optimised route profiles to reduce fuel consumption and carbon emissions. n

MARCH 2021 41

IBX LOGISTICS

IBX Logistics records 68% YoY growth in 2020; expands into France and Switzerland Company set to launch new e-commerce services this year in line with business growth strategy

I

BX Logistics, a leading global provider of transportation services with key operations in UAE, Switzerland and France has announced that it has recorded a 68% year-on-year rise in revenue in 2020, the company stated in a recent press communiqué.

The strong growth has been attributed to expansion in global markets such as France and Switzerland, coupled with established partnerships and trade linkages as well as talented professionals to streamline and manage supply chains.

Equipped with an ambitious team, the company is looking to further expand its business this year with the launch of new e-commerce services and additional operations in other strategic markets, capitalizing on its strengths and experience in the freight forwarding/ logistics industry as well as being ISO 9001:2015 certified by Bureau Veritas, the press statement noted.

Bucking the trend Despite the Covid-19 restrictions in place during 2020, Dubai-based IBX Logistics seamlessly handled global projects, one of which included managing 1,093 trucks for international transport in two months during the peak of the pandemic.

Furthermore, the company’s operations in Switzerland included handling daily charter flights in a duration of four weeks, carrying over 600 tons of medical protective products being transported from China.

Digitalization & CSR To meet growing demand for efficiency and exceed customer expectations, IBX Logistics has adopted a robust IT platform

42 MARCH 2021

which integrates all its freight forwarding, logistics, and business management solutions, according to the press note.

Alongside these services, its transportation and management solutions have been designed to meet clients’ needs in a manner which offsets its carbon footprint by planting a tree for every shipment.

In this regard and as part of its ambitious CSR programme, IBX has partnered with non-profit organization ‘One Tree Planted’ to fund tree-plantings in countries around the world. Last year, the partnership was extended to Uganda where over 1300 trees were planted on the company’s behalf.

Resilience “The pandemic provided IBX the push it needed to convert new challenges into fresh opportunities by investing in futuristic technologies. The UAE logistics sector, which is valued at AED 220bn and is expected to contribute eight per cent to the UAE economy by 2021, has been resilient during the lockdown period, ensuring uninterrupted supply chain to stave off any shortages of essential goods and medicine,” asserted Mustapha Kawam, CEO and Managing Partner, IBX Logistics.

Kawam credited the growth in logistics sector to the country’s free zones and massive infrastructure investments. The UAE is rapidly emerging as a leader in transport and logistics innovation. The Government of Dubai is working towards achieving long-term benefits from the sector with a strong pipeline of transport infrastructure projects, which is in line with the Dubai Industrial Strategy 2030, he noted.

Mustapha Kawam, CEO and Managing Partner, IBX Logistics

Initiatives serve as a boost

“These initiatives will work towards providing a boost to the logistics sector which will ensure sustained long-term success of the national economy,” he added.

IBX Logistics has established itself in the logistics industry within a short span of time, overcoming the challenges posed by restricted movement across borders during the pandemic.

The company offers a range of services to ensure timely shipments for air and ocean freight, trucking, cargo insurance, warehousing as well as the supply chain management. For shipments that require multimodal transport, IBX provides global tracking to make the process as secure and flexible as possible. n

QATAR FREE ZONES AUTHORITY

GAC to establish contract logistics facility in Qatar Free Zones Deal signed to establish a new contract logistics facility in the Ras Bufontas Free Zone

G

AC, one of the largest integrated providers of shipping, logistics and marine services in the region and the world, has recently signed an agreement with Qatar Free Zones Authority (QFZA) to establish a contract logistics facility and office in the Ras Bufontas Free Zone.

The agreement with GAC will play an important role in expanding the logistics offerings for QFZA and Qatar, strengthening supply chains and bolstering Qatar’s position as a global hub for trade.

The virtual signing ceremony was attended by HE Ahmad Bin Mohammed Al-Sayed, the Minister of State and Chairman, QFZA. The deal was signed by Björn Engblom, GAC Group Executive Chairman & Trustee (via video conference) and Lim Meng Hui, CEO, QFZA, in the presence of Abdulla Al-Misnad, Deputy CEO, QFZA. Also present on the occasion were Adrian Peiris, Business Manager– Contract Logistics, GAC Qatar and Daniel Nordberg, General Manager, GAC Qatar.

Sustainability & business The purpose-built 27,000sqm multiuser contract logistics facility, due to be completed in the first quarter of 2022, will be built from sustainable materials, partly fueled by solar power, have several energy-saving features and use recycled water in its operations.

GAC’s marine and offshore services will be well supported by Marsa Port, the marine cluster in Qatar Free Zones.

Its operations at the port will serve the energy companies active in the North Field expansion projects.

Top drawer companies “To bring in the world’s best companies to the zones, we are focused on sectors

Qatar Free Zones Authority and GAC officials at the signing ceremony.

where we have a strong value proposition for these companies,” asserted Meng Hui. “As a pioneer of contract logistics in the region in 1993, GAC continues to augment its capabilities in this area at key locations globally, affirmed Engblom.

According to the recent Mordor Intelligence Report on the Freight and Logistics Market, Qatar’s logistics sector is predicted to grow at an annual 7% in the coming years, outpacing the global average.

Qatar Free Zones Authority (QFZA) started its operations in 2019 and it oversees and regulates world-class free zones in Qatar and secures fixed investments within the zones. n

MARCH 2021 43

ECOLOGY, ENVIRONMENT & SUSTAINABILITY

GCC value chain partners address plastic waste More companies in the region adopt Operation Clean Sweep, a global preservation initiative Major players from across the plastic value chain in the Arabian Gulf have adopted Operation Clean Sweep (OCS) in an effort to address plastic waste.

The Gulf Petrochemicals and Chemicals Association (GPCA), the voice of the chemical industry in the Arabian Gulf, has taken the lead to contain and lessen plastic waste in the region.

O

peration Clean Sweep, a global initiative practiced in over 60 countries around the world, is aimed at eliminating plastic pellet, flake and powder loss to the environment.

The initiative has gained significant momentum since its launch in the Arabian Gulf by GPCA in December 2020.

Currently, the programme is available to all plastics value network partners, including petrochemical producing companies, logistics service providers, ports and port authorities, plastic processors, environmental service providers, traders and sectors involved in the handling of plastic raw materials.

Consequently, the conservation movement is gaining momentum.

Across the board participation GPCA members who have signed the OCS pledge, demonstrating their commitment to a clean environment, include Sadara Chemical Company, S-Chem, KSA; Qatar Chemical Company (Q-Chem); National Petrochemical Industrial Company (NATPET)-Yanbu, KSA; Ingenia Polymers Corporation; Astra Polymer Compounding Company, KSA; RSA-Talke; Almajdouie & de Rijke, (KSA); Aljabr-Talke & Co. (Sohar, Oman); and Alfred Talke Logistic Services.

Despite the application of stringent environmental, safety and quality management controls, unintentional loss of plastic pellets can occur at all

44 MARCH 2021

Dr. Abdulwahab Al-Sadoun, Secretary General, GPCA

stages along the plastic value chain and represents a global challenge.

While figures of the exact cost of plastic pellet loss in the Arabian Gulf region are not currently available, one estimate suggests it can have an economic and business cost in the tune of US$ 1.5bn every year excluding environmental and reputational damage among local communities.

Plastic production in the Arabian Gulf has grown tremendously over the last 10 years and by 2030, is expected to reach 38.5mn tons, growing by 14.3% from current levels.

Responsible Care “Over the last decade, GPCA and its members have excelled on par with peer associations in the adoption and implementation of leading global programs such as Responsible Care and GulfSQAS, which have helped to improve the health, safety security and environmental performance at petrochemical producers and logistics service providers in the region,”explained Dr. Abdulwahab AlSadoun, Secretary General, GPCA. “Building on this success, in just a few months we’ve seen adoption of

Operation Clean Sweep grow steadily across the region, which is a testament to plastic value chain players’ commitment to sustainable pellet containment practices, and in line with the region’s sustainability agenda towards addressing the plastic waste challenge,” he added.

Need for transparency “With polymers having one of the fastest growing contributions to GCC chemical exports by volume and by revenue, investment in this segment will continue to grow in the next decade, as a number of new projects come on stream. With increased production comes the need for greater accountability, collaboration and transparency on effective and sustainable pellet containment management practices,” he further noted.

OCS is a product stewardship program of the American Chemistry Council’s Plastics Division and Plastics Industry Association in the US. It is aligned with GPCA’s commitment to the Declaration of the Global Plastics Associations for solutions on marine litter, specifically focusing on one of their commitments‘To address marine litter at the source through plastic pellet containment’. n

Join NAFL / FIATA to get connected for networking and business opportunities Membership open for 2021

TRAINING

Most powerful network in the world for freight and logistics

SCHOLARSHIPS FOR DESERVING UAE NATIONALS

Here’s why you should consider being a member: International Benefits:

National Benefits:

+ The FIATA member certificate + Use of the Fiata logo + Entry in the FIATA members directory & networking events + Advertising in the FIATA members directory, review and information (FIATA e-Flash) + Special Rates for FIATA publication and articles + Access to secretariat›s assistance + FIATA arbitration code + Use of FIATA documents + FIATA worldwide member connectivity + Talent Connect Worldwide, E-Learning

+ + + + + + + + + +

The NAFL member certificate Use of the NAFL logo Free access to networking events Discountes rates in participating in global and regional conferences Asssistance in case of legal advocacy Discounts for cargo/logistic events and exhibition stands Discount training for NAFL members Training/Certification for regional/international courses Insurance at discounted rates (cargo/liability/medical) Complimentary internship, Skill upgrade and Mentoring & Innovation ideas + Discounted supplier rates for industry products

Be the Industry voice, protect yourself by STC, Insurance and maritime advice, network B2B, B2C ACCREDITATIONS National Association of Freight & Logistics

the global voice of freight logistics

NAFL : National Association of Freight & Logistics P.O. Box 60944 Dubai, United Arab Emirates Tel: +971 4 3431112, Mobile: +971 50 7802631

Register at info@nafl.ae or shankar@nafl.ae, www.nafl.ae

FIATA LEARNING ACADEMY

ARAMEX

LetsTango.com and Aramex ink deal to power regional ecommerce The exclusive partnership will generate revenues over AED 20mn

Aramex’s revenues in FY-2020 increases 9% to a record AED 5.51bn 21% growth in International and Domestic Express volumes during 2020

A

ramex recently announced its financial results for Q4-2020 and Full Year (FY-2020) ending 31 December 2020.

In Q4-2020, revenue increased 13% to AED 1,598mn, compared to AED 1,418mn reported in Q4-2019. For the year, Aramex’s Revenue was AED 5,510mn, an 9% increase versus FY2019 and the highest revenue on record, as Covid-19 accelerated e-commerce activities.

“In 2020, Aramex demonstrated its operational resilience and agility to respond swiftly to fast-changing operational conditions thanks to our strong digital infrastructure, robust financial position, experienced management team and the incredibly determined people that were on the ground getting the job done,” affirmed Captain Mohamed Juma Alshamsi, Chairman, Aramex, said: “On the

46 MARCH 2021

Alex Tchablakian, COO, LetsTango

Bashar Obeid, CEO, Aramex

LetsTango.com and Aramex have partnered together in what is a first ever deal to fuel cross-border ecommerce in the region.

Following the partnership, LetsTango.com will add to its brand roster an array of the best and most exclusive brands from Thailand. Aramex will provide its logistics solutions effectively to reach more businesses and consumers regionally in the UAE and Middle East.

The corporation includes listing of over a thousand authentic and unique products from a wide variety of categories such as health and wellness, personal care and hygiene, fragrances, dietary supplements, beauty and fashion, auto accessories and parts, electronics devices and wearables.

“Our partnership with Aramex is the first ever of this kind and is in line with our sustainable growth vision for Thai sellers.

Having partnered with Aramex, we are hopeful to bridge the gap between the demand and supply that has accelerated in the recent times,” commented Alex Tchablakian, COO, LetsTango.com.

“Our partnership with LetsTango.com will boost Aramex’s efforts in expanding our services in Thailand and the wider Asia Pacific market,” remarked Samer Marei, Regional Director, Southeastern Asia & India Subcontinent, Aramex.

ARAMEX

Thomas Kipp, COO, Aramex

commercial front, we were incredibly successful in expanding our services and increasing the number of customers and total volume of shipments handled in the healthcare and FMCG sectors,” commented Bashar Obeid, CEO, Aramex.

Q4 2020 business performance highlights Aramex’s International Express business jumped 18% to AED 796mn, compared to AED 673mn in Q4-2019. The increase is predominately driven by growth in e-commerce from USA, Europe and Asia origins into the GCC. Domestic Express surged 19%, to AED 387mn, compared to AED 324mn in Q4-2019. A surge in e-commerce activity led to a 37% increase in e-commerce volumes in core markets, notably from Saudi Arabia, UAE and Kuwait. There was also good growth from Australia and New Zealand.

Freight-Forwarding reported revenue of AED 280mn down 5%, from AED 294mn in Q4-2019 on the back of the decline in activity from the oil and gas and fashion retail segment.

Aramex’s Logistics & Supply Chain Solutions business witnessed a 4% year on year growth to AED 101mn and rebounding from Q2-2020 lows. This was mainly attributed to growth from very promising and strategic sectors including healthcare and FMCG. “In Q4 we handled a record volume in Express shipments and witnessed a strong rebound in volumes in our International Express from the Q2 2020 lows,” remarked Thomas Kipp, COO, Aramex. n

Aramex enters a binding agreement to sell InfoFort to Iron Mountain Sale aligned with Aramex’s strategy to focus on core logistics operations Aramex recently announced that it is has reached a definitive and binding agreement for a subsidiary of Iron Mountain, the US based global leader of information management services, to acquire Information, a leading records and information management provider in the Middle East, North Africa and Turkey regions.

Upon completion of the transaction, Aramex will cease to be a shareholder in InfoFort. The disposal will strengthen Aramex’s balance sheet and result in a more focused group, consistent with management’s longterm strategy to focus its operations on the core logistics solutions services,

a press communiqué continued.

“The sale of InfoFort is a major milestone for Aramex, which will allow the group to focus entirely on growing the group’s core logistics businesses globally,” affirmed Bashar Obeid, CEO, Aramex.

“We look forward to welcoming InfoFort customers and employees to Iron Mountain further building on our commitment to facilitate customers’ transformation journeys and solving their evolving business challenges,” remarked Ernest Cloutier, Executive Vice President and General Manager, Global Records and Information Management, Iron Mountain.

MARCH 2021 47

FOOD SECURITY

Global and regional supply chains severely disrupted by pandemic

Strong leadership, planning, communications and co-operation pivotal to maintain and sustain the food supply chain UAE Minister of State for Food and Water Security HE Mariam Al Mheiri and captains of industry deliver valuable insights at the recently concluded Gulfood 2021 Innovation Summit

H

E Mariam Al Mheiri, UAE Minister of State for Food and Water Security and leaders in the global supply chain recently revealed the secrets to the UAE’s successful navigation of F&B challenges during the pandemic and highlighted how the country will play a leading role in keeping food moving around the world in the new normal.

In her opening keynote address at the Gulfood Innovation Summit, the thought-provoking three-day conference running alongside Gulfood 2021, the Minister acknowledged that the Covid-19 pandemic had tested the UAE. However, she pointed out how the

48 MARCH 2021

political will of the UAE’s leadership, the importance of implementing a carefully considered plan, and the ability to communicate with stakeholders, enabled the country to keep food supplies moving and supermarket shelves full throughout a challenging year.

Agritech hub Outlining how the UAE has become a hub for agritech, allowing companies to farm and grow a wide variety of foods - from fruit and vegetables to salmon - pesticide-free in the Emirates, the Minister said the country’s agritech

drive was not only to enhance its selfsufficiency, but to increase knowledge of how to grow food in an arid climate, while attracting youth and women into this burgeoning sector.

The Minister told the summit that the world has enough food to feed the more than 850mn people who go hungry every day, but work is required to transform global food systems to become more efficient.

She urged consumers to play their part by being ‘more responsible around food’, choosing portion sizes wisely, buying local produce whenever possible and striving not to waste edible food.

FOOD SECURITY

High-level panelists at the Gulfood Innovation Summit 2021

NATIONAL FOOD SECURITY STRATEGY UAE’s population having access to sufficient, safe and nutritious food for an active and healthy life at affordable prices at all times

2051 VISION World leading hub in innovation-driven food security

2021 mission To champion agribusiness trade facilitation through a whole-of-nation apparatus and to ensure food security under all circumstances through enabling technology-based production and supply of food, promoting international trade partnerships, and enforcing policies and regulations to enhance nutritional intake and reduce food loss and waste.

Main Food Items

UAE's Target on the Global Food Security Index

1

Current

2051

2021

Bananas

Leafy Greens

Tomatoes

Pulses

1

Potato

Cucumber

2

Other

2

Sugar

Livestock products

Goat meat

3

Fisheries

Poultry meat

Milk

Eggs

4

Secured target

67% alternative international sources

Enhance sustainable technology-enabled domestic food supply across the value chain Increase in

~30% new technology-enabled production

5

15% production of select strategic food items

3

Reduce food loss and waste

4

Sustain food safety and improve nutritional intake

35% Reduction in food safety incidences

5 Cattle meat

Facilitate global agri-business trade and diversify international food sources

Yield improvement from

1

Rice

Wheat

Engage the community to shift food security notions and behaviors

Contribution of 24% strategic investments from overall imports

Oils Dates

Build an effective food Establish and implement Develop the National a national R&D Food security governance Food Security Database Security agenda model Build human capacity for food security functions

aed

Nutrition

Grains & Pulses

7.1MN

Employment Impact

~16.000 jobs

Plant products

Apples

8.2MN

2016 2036 Water supply for agriculture m3/day

Enablers

18 main food items Vegetables

Domestic production increase of strategic food items

Economic Impact 2021

BILLION

Fruits

Water – Food Nexus UAE Water Security Strategy 2036

TONS

22

Production

+100.000

9

31

Monetary Impact

Consumption

Domestic Production Impact

15% Reduction of food loss and waste

15% Reduction in consumption of unhealthy food elements

Enhance capacity to respond to food security risks and crises

Successful completion 100% of emergency drills

Achievement of reserve 100% targets for 6 priority food items

MARCH 2021 49

FOOD SECURITY

Reaching consumers During a panel discussion on supply chain challenges titled ‘Reaching 3 Billion Customers’, Ahmed Al Haddad, COO, DP World UAE region, pointed to partnerships between the ports operator, Emirates Airline and the Government of Dubai to keep the global food supply chain moving.

Carlos Garcia, partner, Middle East Customs & International Trade, PwC Middle East, meanwhile, said the situation had been helped by a change in mindset from regional customs authorities, which are no longer just policing borders but also acting as trade facilitators.

Digital dashboards

Supply Chain inefficiencies a big factor in annual 1.3 billion tonne food wastage Shift In logistics and consumer attitudes needed to tackle growing global challenge A whopping 1.3 billion tonnes of edible food, equivalent to a third of global production, goes to waste every year through supply chain inefficiencies and consumer behaviours, according to industry experts at the Gulfood Innovation Summit.

Addressing a panel discussion titled ‘Food Waste: From Trash to Cash’, leaders in sustainability, technology and innovation for future food ecosystems discussion how a twopronged approach of education and action is needed to tackle the growing global concern.

Sheikh Dr. Majid Al Qassimi, founding partner of Soma Mater, the Middle East’s only food and agricultural sustainability consulting company, said food waste does not start with unfinished food in restaurants, it emerges in the supply chain.

“Actually, food wastage goes across the whole supply chain so

50 MARCH 2021

what isn’t obvious to consumers, manufacturers will know, that right from the production of food through to consumption, you have something called food loss,” commented Sheikh Dr. Al Qassimi.

“We are targeting that specific journey as the food is optimal for consumption, but it doesn’t reach the consumer because it is out of scale, over mature or was damaged in transport,” noted Marcio Barradas, CEO and founder, 3D Essence Food and Moodbytes, a company dedicated to bringing cutting-edge food technologies to the industry.

“Food waste for us is a behavioral issue. We lack granular data that tells us how much wastage is happening and the costs attached to that,” observed Ignacio Ramirez, Global Head of Operations, Managing Director MENA, Winnow Solutions, a company specializing in helping the hospitality sector cut food waste in half.

Garcia added that companies were leveraging data analytics and digital dashboards to facilitate trade activities and capitalise on regional trade incentives, stressing that partnerships with government authorities are a must for logistics companies to move goods faster and more efficiently.

Dennis Lister, VP Product and Business Development, Emirates SkyCargo, acknowledged that supply chain operators must become more efficient in digitising cargo operations, while Al Haddad pointed to the significant strides Dubai and DP World have made in embracing technologies to enhance efficiency.

Gulfood 2021 draws global power brands Meanwhile Gulfood 2021 drew 2,500 companies from 85 countries eager to kickstart the in-person world food trade at Dubai World Trade Centre (DWTC).

Gulfood 2021 witnessed exceptional participation from the entire industry ecosystem—ministers and national trade delegations; more than 110 of the biggest names in F&B and business delivering valuable insights and ‘new normal’ perspectives.

The safest and most competitive global food sourcing hub of the year connected thousands of major players across the entire F&B ecosystem, from government delegations and trade ministers to forward-thinking manufacturers and

Sheikh Dr. Majid Al Qassimi, founding partner of Soma Mater at the Gulfood Innovation Summit 2021

major industry disruptors, for five fast-paced days of mega purchasing details, game-changing dialogue and knowledge-exchange, and live culinary demonstrations.

Demonstrating its importance to the complete sector spectrum, 110 of the biggest names in F&B and business came together under one roof. C-suite executives from supply chain behemoths DHL and Emirates SkyCargo; CMOs of global heavyweights Microsoft, Pizza Hut and PepsiCo; CEOs of regional brands Majid Al Futtaim and Lulu International Group; world-renowned Michelin Star chefs and the UAE’s top culinary masters delivered valuable insights and ‘new normal’ perspectives.

The show served as a way finder for the future of food across 20 exhibition halls engaging with thousands of global buyers looking to get their year off to a fast start and boost ‘new normal’ sales forecasts by accessing new product solutions to meet changing buying habits.

Running alongside the exhibition, the heralded Gulfood Innovation Summit and The Marketing Society Speaker Series hosted the brightest F&B minds and success-makers to address burning issues such as food security; supply chain; sustainable eating; and dialing into evolving consumer preferences.

“From producers ready to unveil the latest sector solutions, to industry leaders providing new perspectives, and worldrenowned chefs dishing up invaluable insights,” affirmed Trixie LohMirmand, Executive Vice President, Events Management, DWTC. n

Gulfood Marketing Society workshops unpacked dramatic changes in consumer F&B sentiment

Workshop unfurls dramatic changes in consumer F&B sentiment during pandemic Shift In logistics and consumer attitudes needed to tackle growing global challenge Consumers want the F&B sector to focus on improving food safety, switch to sustainable packaging and put greater emphasis on tackling food waste, according to a new study released at Gulfood 2021.

Tetra Pak, a world-leading food processing and packaging solutions company, unveiled the findings of its latest consumer survey during a session titled ‘The Evolution of Consumer Behaviour’ at the all-new Market Society Workshops at Gulfood 2021.

The latest annual TetraPak Index Report canvassed 15,000 consumers spanning 20 countries, on their concerns around the pandemic, 68% of respondents stated food safety is a major concern for society.

Bound for environmental disaster Elsewhere in the survey, 67% of respondents said the world is heading for an environmental disaster unless daily habits change, while 64% believe climate change is the result of human activity, yet 63% said global pandemic lockdowns have triggered some environmental improvements.

“We asked consumers what the top three issues are that the food industry should tackle, and the results weren’t all that surprising, with 53% saying that the F&B industry should improve food safety, 52% saying manufacturers should use sustainable packaging and 48% concerned about food waste,” said Belin Alev, Head of External Communications for Europe, Central Asia and Middle East and Africa, Tetra Pak, who presented findings.

Packaging, a priority Alev added that 50% of respondents see sustainable packaging as a top priority and will pro-actively avoid products that use excessive amounts of unnecessary packaging. Three quarters of respondents also believe companies should be obliged to help with the recycling of their packaging.

“The last area we looked at is around food waste. In recent years, the topic of food waste has not been high on the agenda, however if you consider that a third of the world’s food production goes to waste this is still something that certainly worries consumers,” she added.

MARCH 2021 51

UAE CIVIL AVIATION

Ras Al Khaimah International Airport extends its reach into Central Asia UAE’s fastest growing aviation hub starts operations with Kazakhstan based air carrier, SCAT Airlines

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as Al Khaimah International Airport (RAK Airport), the UAE’s fastest growing aviation hub, has extended its reach into Central Asia with the commencement of passenger operations from Kazakhstan-based air carrier, SCAT Airlines, the Airport announced in a press communiqué.

SCAT Airlines marked the commencement of a new service that will see eight flights per week between Ras Al Khaimah and eight cities in Kazakhstan: Almaty, Aktau, Aktobe, Atyrau, Karaganda, Oral, Nur Sultan and Shymkent.

“With its ongoing expansion plans that are accelerating into a new phase, RAK Airport will play an increasingly important role in the UAE’s development plans for the next 50 years, creating stronger links to the UAE with cultures around the

52 MARCH 2021

world,”affirmed HE Engr. Salem Sultan Al-Qasimi, Chairman of the Department of Civil Aviation and Ras Al Khaimah International Airport, board member of General Civil Aviation Authority & RAK Executive Council.

Expo 2020 — a big draw “Expo2020 is just around the corner and this service will offer a direct connection from eight major Kazakhstan cities including the capital Nur Sultan. I expect that we will witness significant two-way passenger traffic on this new SCAT Airlines route in the coming months,” explained HE Menilbekov Madiyar, Ambassador of Kazakhstan to the UAE. “This service will play a vital role in boosting tourism between our respective regions and open up the wonders of both

countries to new segments of visitors,” observed Sytnik Vladimir, Vice President, SCAT. “We are delighted to announce that our airport has extended the area of operations into Central Asia through its partnership with SCAT Airlines,”noted Sanjay Khanna, Chief Executive Officer, Ras Al Khaimah International Airport.

SCAT Airlines SCAT Airlines is based at Shymkent Airport, Kazakhstan, with additional bases at Aktau, Astana and Almaty airports. Established in 1997, SCAT serves international destinations in the CIS and Central Asia as well as operates an extensive network of domestic services alongside its regional subsidiary, Southern Sky Airlines. n

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SAUDI CARGO / SAL

Saudia Cargo inks deal with China’s Cainiao Network

Agreement to connect China with Europe via Hong Kong UAE Minister of State for Food and Water Security HE Mariam Al Mheiri and captains of industry deliver valuable insights at the recently concluded Gulfood 2021 Innovation Summit

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audia Cargo recently announced the signing of cargo agreement with one of the leading IT and logistics operator, Cainiao Network, the logistics arm of China’s Alibaba Group, to support e-commerce operations between China and Europe by operating five weekly flights from Hong Kong to Liege in Belgium with Riyadh city as a connection point.

These flights will form a sky bridge between Asia and Europe to cater to the high demand on e-commerce, which has surged enormously with the advent of the pandemic.

“We are excited for this strategic agreement which will enhance logistic services between the two continents through the famous Alibaba’s e-commerce platform and its high traffic of online shoppers,” affirmed Omar Hariri, CEO, Saudia Cargo.

54 MARCH 2021

“This agreement is part of our framework to transform the Kingdom into an open gate for world trade and a bridge connecting East and West by leveraging its strategic location in the center of the world. Other promising partnerships will be coming up in the near future to reinforce logistic operations of Alibaba in both continents,”he added.

Cainiao Logistics Cainiao logistics services cover more than 200 countries around the world placing the company as one of the most popular logistic services providers for many retailers and consumers globally.

“Expanding our logistics network into new regions will also help us in building efficient global exports network. This new route will be one of the key elements to create seamless logistics and increase

synergy between different regions”, commented William Xiong, Chief Strategist and General Manager, Export Logistics, Cainiao.

Since the start of the pandemic, Saudia Cargo has announced several measures to ensure the continuity of its highly efficient logistic operations such as increasing cargo flights to many destinations in Middle East, Africa, Europe, Asia and USA to keep a regular flow of vital products and maintain the economic and commercial sustainability in the Kingdom, the carrier asserted through a press communiqué.

Saudia Cargo’s present fleet of 7 freighter-only aircraft (4 Boeing 777 and 3 Boeing 747-400F), Saudia Cargo has adequate space and tonnage capacity to haul e-commerce goods on different routes, cared for by highly trained personnel who ensure the safest delivery, the press note concluded. n

SAUDI CARGO / SAL

Saudia Cargo’s present fleet of aircrafts has adequate space and tonnage capacity to haul e-commerce goods on different routes, cared for by highly trained personnel who ensure the safest delivery

Omar Hariri, CEO, Saudia Cargo

SAL and KAEC sign agreement to augment Saudi Arabia’s logistics services sector Industrial Valley to offer investors premium logistics and advanced infrastructure services The Saudi Logistics Company (SAL) recently signed a ‘Memorandum of Cooperation’ to provide further support and enhanced logistics services to King Abdullah Economic City (KAEC).

The memorandum, signed by Omar Talal Hariri, CEO, SAL, and Ahmed Linjawi, CEO, KAEC, focuses on boosting logistics services and creating logistics and economic opportunities consistent with Saudi Arabia’s ambitious 2030 vision to transform the Kingdom into a global logistic hub.

Hariri emphasized the importance of this strategic partnership and its role to enhance the cargo ground handling services to and from KAEC. He also affirmed that partnering with KAEC was an ideal choice as one of the largest mega projects in the Kingdom and also for its prominent strategic economic and investment location.

He further asserted that SAL would utilize all its logistic capabilities to take advantage of the competitive benefits the Industrial Valley at KAEC had to offer.

Invigorating economic growth “This memorandum aims to enhance the strategic partnerships we enjoy with multiple public and private entities and is part of our continued efforts to provide investors both from within and outside the Kingdom with a productive, stimulating environment to support, grow and diversify the national economy,” observed Linjawi.

The signing of the memorandum, he further noted,

is in line with the Kingdom’s 2030 vision to becoming a global logistic hub and giant and cements the Industrial Valley’s position as an important logistic connection and convergence point for the east and west trade routes.

SAL is the logistic arm of Saudi Arabian Airlines (Saudia) offering premium cargo handling services to airline carriers at Saudi Arabia’s domestic airports and a multi-model connectivity service.

Industrial Valley Thanks to its competitive privileges, the Industrial Valley at KAEC serves as an attractive destination for the world’s reputed food and pharmaceutical firms offering investors high quality logistics and integrated infrastructure services.

What makes the Industrial Valley so special is its connection with King Abdullah Port and the international flight network, not to mention the fully integrated facilities, housing solutions and social services that remain affordable for all budgets.

The Economic Cities & Special Zones Authority (ECZA) is the sole regulator of KAEC, which serves as the facilitator of all governmental procedures and ensures a comfortable and stimulant environment for all investors in and outside the Kingdom.

KAEC is one of the largest private sector economic projects on the global level spanning over 185 million square meters on the Red sea coast north of Jeddah.

MARCH 2021 55

DP WORLD

DP World signs key Port and Logistics Park Agreement with Indonesia’s Maspion Group Project will develop infrastructure and a US$1.2 billion container port and industrial logistics park in East Java

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Sultan Ahmed Bin Sulayem and Dr. Alim Markus seal the deal.

P World alongside its partner Caisse de dépôt et placement du Québec (CDPQ), a global investment group, recently signed a long-term agreement with Indonesia’s leading conglomerate Maspion Group to start the construction of an international container port and industrial logistics park in Gresik.

Work on the projects is expected to begin in the third quarter of 2021, with a total investment of up to US$ 1.2bn, enhancing East Java’s position as a key trade gateway for Indonesia.

The signing ceremony was held in the presence of Coordinating Minister for Maritime and Investment Affairs of the Republic of Indonesia, Luhut Binsar Pandjaitan, and the United Arab Emirates’ Minister of Energy and Infrastructure, HE Suhail Al Mazrouei, in Jakarta at the Indonesia-Emirates Amazing Week 2021 Building Path Towards Economic Recovery business forum.

The signatories of the formal agreements are Sultan Ahmed Bin

56 MARCH 2021

Sultan Ahmed Bin Sulayem addresses the Jakarta Forum.

Sulayem, Group Chairman and CEO of DP World, and Dr. Alim Markus, Chairman and CEO, Maspion Group.

Joint venture Under the agreement, a joint venture company will be established between DP World and CDPQ’s global investment platform and Maspion Group, the first of its kind in the Indonesian transportation sector involving a foreign direct investor (FDI) partner and a private sector Indonesian company.

DP World Maspion East Java will become the sole operator of a modern international container port with design capacity of up to three million twentyfoot equivalent units (TEU). DP World and CDPQ will also work with Maspion Group to develop an integrated industrial and logistics park, adjacent to the Container Terminal, with an initial land area of 110 hectares with scope for future expansion.

The Park will provide world-class

trade environment for domestic and international businesses to help drive economic growth and create jobs.

“The partnership with Maspion Group is an important development in our global ports and logistics network,” remarked Bin Sulayem.

Partnership “Through this partnership with Maspion, CDPQ is delighted to make its first infrastructure investment in Indonesia, a strong growth market which benefits from favourable structural trend,” commented Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ. “Maspion Group is committed to support Indonesia’s sustainable economic development and to make Indonesia the fifth largest economy in the world,” noted Markus.

Groundbreaking on the Container Terminal is expected to take place in 2021, with commercial operations expected to begin in 2023. n

DP WORLD

DP World UAE Region attains 100% conversion in customer transactions The paperless initiative aligns with the UAE Smart Government Goals

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P World, UAE Region leveraged Emirates NBD’s digital collection solution to convert 100 per cent of related counter transactions to online collection on its ‘Smart Transactions’ platform in 2020.

The initiative was operated in collaboration with Emirates NBD Corporate & Institutional Banking, a press note stated.

DP World, UAE Region, utilised Emirates NBD’s advanced digital infrastructure and expertise to create a digital collections solution. It offers a safe, secure and easily accessible digital alternative to DP World, UAE Region’s customers for paying fees.

Digital transactions Customers opting for digital transactions reflect the remarkable success of the collaboration between DP World, UAE Region and Emirates NBD to help Prepaid and Advance port customers.

Paperless Advance Deposit Account and Prepaid Account Top Up are two solutions that are being widely used for transactions.

The enhanced receivables solution employs an Application Programming Interface (API)based integration between DP World, UAE Region’s collection (ERP) system and Emirates NBD’s cash/cheque deposit machines (CDM).

“The smart transactions initiative was aimed at discontinuing deposit requests at our service counter, actively encouraging all customers to use the Emirates NBD CDM facilities for topup requirements,” said Asim Abdul Wahid Al Abbasi, CFO, DP World, UAE Region.

“Our agreement builds on Emirates NBD’s commitment to collaborate with large businesses to further the smart nation vision of the UAE,” noted Ahmed Al Qassim, Senior EVP and Group Head, Corporate & Institutional Banking, Emirates NBD. n

DP World Limassol implements Zodiac cloud-based operating system Innovative new digital Terminal Operating System enhances the productivity of Limassol Port DP World Limassol has implemented a new ZODIAC cloud-based Terminal Operating System (TOS), as part of its efforts to optimize Limassol port’s operations by embracing digitization and automation.

ZODIAC TOS offers an integrated platform, providing all supply chain users with real-time information on vessel, yard, gate and rail movements.

Other features include advanced Electronic Data Interchange (EDI), digital documentation, flexible reporting, smart planning components and web-enabled user interfaces.

New operating system The newly developed operating system will boost the efficiency and productivity of the DP World Limassol terminal, while improving customer experience. Many of the administrative duties of terminal staff will now be automated, freeing them up to focus on efficiency, quality, and customer relations.

“We are now offering the global port and terminal market our complete ZODIAC software solutions portfolio, which encompasses TOS as well as automated gate systems and other terminal management systems for improved cargo and container performance,” affirmed Dr. Mohamed Rahmah, Head, ZODIAC.

Technology rollout The rollout of the innovative solution in Limassol marks another successful ZODIAC implementation to add to the growing number within the DP World group, but also represents the first time ZODIAC has implemented a cloud-based TOS serving mixed cargoes operations, a press communiqué indicated.

“DP World has always invested heavily in state-of-the-art digital equipment and is continuously introducing new innovations in terminal operations that boost resilience and automation,” asserted Nawaf Abdulla, CEO, DP World Limassol.

MARCH 2021 57

WAREHOUSING

Warehouse Optimization in a Pandemic Warehouses can use tech and an omni-channel fulfilment strategy to succeed in these tough times

Khaled AlShami, Senior Director, Solution Consulting, Middle East & Africa, Infor, examines how the pandemic has accelerated the need for a truly optimized warehouse

I

t’s been suggested by many experts that the current pandemic has driven accelerated technology adoption across numerous industries. Undoubtedly, some businesses in the region were caught off guard when Covid-19 brought about substantial disruption, from higher volumes of e-commerce, a skeleton workforce in some areas, and intermittent shutdowns.

Whether for distributors of professional trade and industrial products, or safety

58 MARCH 2021

and medical supplies, this means optimizing warehouse operations. But just what, exactly, does this mean?

Critical factors One of the most critical points for distributors to consider is that all activities which take place within the warehouse have a direct impact on their relationship with customers.

The challenge here is that the goals, and indeed the goalposts, are seemingly constantly changing. The pandemic has brought a number of simultaneous challenges to warehouse operations.

The most obvious is that the pandemic has made for workforce inconsistency, as team members deal with illness, quarantine, or childcare demands, putting pressure on teams and impeding productivity.

WAREHOUSING

any lost inventory or inventory that’s walking out the door as a result of it not being managed or tracked properly.

The Value of Cloud

Khaled AlShami, Senior Director, Solution Consulting, Middle East & Africa, Infor.

MENA’s e-commerce sector is expected to reach US$ 28.5bn by 2022, up from US$ 8 3bn in 2017, representing an annual growth rate of more than 28% Another is that growth in e-commerce, in MENA and globally, is outpacing even the most bullish of prior estimates, with customers having established high standards for an omni-channel experience.

MENA’s e-commerce sector is expected to reach US$ 28.5bn by 2022, up from US$ 8 3bn in 2017, representing an annual growth rate of more than 28%, according to Brian & Company.

In 2021, if you don’t have an omnichannel fulfilment strategy, you risk losing out on a lot of business, therefore having a warehouse which can effectively fulfil many channels optimally, is key.

This challenge is particularly pertinent as many warehouse management systems (WMS) out there are pretty old and simply don’t have the capacity to provide this optimized fulfilment.

A common misconception is that optimized fulfilment is just about getting the product out of the door on time.

In fact, while this is of course crucial, optimized fulfilment is about adding

value to fulfilment, despite the inability to offer face-to-face services.

The ability to go above and beyond in the name of the customer experience requires the right digital foundation in place to facilitate these efforts effectively.

Cost Controls This time of business disruption saw many distributors hunkering down and attempting to trim the fat off already extremely lean processes. If inventory is incrementally managed more effectively based on greater transparency across your organization, it can equate to huge amounts of savings.

A WMS system designed specifically to keep costs streamlined through intelligent inventory insights can help distributors have more confidence that they can meet their customer commitments without needing to buy and stock more than necessary. So, we look at warehouse operations as a way to control purchasing, and certainly control

On-premise was once the accepted standard in wholesale distribution, but it’s no longer offering the flexibility and innovation needed in today’s business environments. Where cloud really shines is in managing increased throughput in the warehouse.

Cloud provides the capability to quickly calculate the increased throughput, and then automatically add the additional computing power necessary for that increased throughput.

The security, reliability and builtin disaster recovery all go without saying, but it’s the ability to handle this increased throughput automatically, at any given moment, which truly adds value.

Testament to this value is that those customers already using cloud solutions had a much easier time adapting to last year’s disruption, making the necessary adjustments as needed.

Added Considerations Optimizing e-commerce isn’t as simple as streamlining pick-pack-ship. There are new variables that need to be considered, including what happens to the product once it leaves the dock, and many distributors have been caught offguard by the number of returns they’ve needed to process.

As a consumer in the e-commerce world, they might buy something in three different sizes or three different colours, and then return two of the three. It is now evident that something similar happening to wholesale distributors. Distributors must have a system that allows them to seamlessly accept that return and get it back on the shelf in an effective manner.

In achieving this, distributors are not only optimising their fulfilment, but designing a strategy for the digital economy which boosts performance and expands market share. n

MARCH 2021 59

ENVIRONMENT & ECOLOGY—CARBON NEUTRALITY

AP Moller-Maersk to operate the world’s first carbon neutral liner vessel by 2023

Feat attained seven years ahead of schedule AP Moller-Maersk has speeded up on decarburization (decarbonization) with a methanol-fueled feeder vessel on the water in 2023, piloting a scalable carbon neutral product to customers and offering fuel suppliers incentive to scale production of the fuels of the future.

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aersk has announced that all future owned new-built vessels will be able to operate on carbon neutral fuel.

Fast-tracked by advances in technology and increasing customer demand for sustainable supply chains, AP Moller-Maersk accelerated the efforts to decarbonize marine operations with the launch of the world’s first carbon neutral liner vessel in 2023, seven years ahead of the initial 2030-ambition.

All future Maersk owned new buildings will have dual fuel technology installed, enabling either carbon neutral operations or operation on standard very low sulphur fuel oil (VLSFO)

decarbonizes their global supply chains, and we are embracing the challenge, working on solving the practical, technical and safety challenges inherent in the carbon neutral fuels we need in the future. Our ambition to have a carbon neutral fleet by 2050,” affirmed Søren Skou, CEO, AP Moller-Maersk.

Around half of Maersk’s 200 largest customers have set, or are in the process of setting, ambitious science-based or zero carbon targets for their supply chains, and the figure is on the rise.

Maersk’s methanol feeder vessel will have a capacity of around 2000 TEU and be deployed in one of its intra-regional networks. While the vessel will be able to operate on standard VLSFO, the plan is to operate the vessel on carbon neutral e-methanol or sustainable bio-methanol from day one.

Decarbonizing — the way forward “AP Moller-Maersk’s ambition is to lead the way in decarburizing global logistics.

Our customers expect us to help them

60 MARCH 2021

Søren Skou, CEO, AP Moller-Maersk

Carbon neutral vessels “We believe our aspiration to put the world’s first carbon neutral liner vessel in operation by 2023 is the best way to kick start the rapid scaling of carbon neutral fuels we will need,” asserted Henriette Hallberg Thygesen, CEO, Fleet & Strategic Brands, AP Moller-Maersk.

Both the methanol-fueled feeder vessel and the decision to install dual fuel engines on future new buildings are part of Maersk’s ongoing fleet replacement.

CAPEX implications will be manageable and are included in current guidance.

Strengthened collaboration A carbon neutral future for shipping requires innovation, test and collaboration across multiple industry partners. Maersk continues to explore several carbon neutral fuel pathways and expects multiple fuel solutions to exist alongside each other in the future, the press communiqué continued. Methanol (e-methanol and bio-methanol), alcohollignin blends and ammonia remain the primary fuel candidates for the future.

A key collaboration partner is the Mærsk Mc-Kinney Møller Centre for Zero Carbon Shipping, an independent, non-profit research and development centre that works across sectors, organizations, research areas and regulators to accelerate the development and implementation of new energy systems and technologies. n

EQUIPPED FOR THE FUTURE Companies the world over are relying on SSI SCHAEFER as their partner for future-proof logistics solutions. When it comes to mastering the ever more complex and dynamic processes in your warehouse, our experts are there for you. As the world‘s leading supplier of logistics systems, we not only offer everything for your internal storage needs, but also concentrated IT power.

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