GLOBAL SUPPLY CHAIN MAY 2021 ISSUE

May 2021 Issue 80

ENHANCING THE BUSINESS OF LOGISTICS

Healthcare logistics provide a lifeline The efficient Cold Chain is the need of the hour RSGT

KSA’s newest Container Terminal

NAFL

Cause for Celebrations

HFZA

Good Track Record

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Lifeline Logistics SIGNATURE MEDIA FZ LLE P. O. Box 49784, Dubai, UAE Tel: 04 3795678 Email: info@signaturemediame.com Exclusive Sales Agent Signature Media LLC P.O. Box 49784, Dubai, UAE Publisher: Jason Verhoven jason@signaturemediame.com Editor: Malcolm Dias malcolm@signaturemediame.com Art Director: Johnson Machado johnson@signaturemediame.com Production Manager: Roy Varghese roy@signaturemediame.com

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

Contributor’s opinions do not necessarily reflect those of the publisher or editor and while every precaution has been taken to ensure that the information contained in this magazine is accurate and timely, no liability is accepted by them for errors or omissions, however caused.

Articles and information contained in this publication are the copyright of Signature Media FZ LLE & SIGNATURE MEDIA LLC and cannot be reproduced in any form without written permission.

The massive surge in India’s official count of Covid-19 cases surpassed 20 million at the time of writing, nearly doubling in the past three months. That continues to be a matter of grave concern.

Meanwhile, the pandemic also continues to ravage many countries, with Covid-19 numbers growing unabated. The vaccination drive is also in high gear across the globe.

Against this backdrop, it is therefore imperative to ensure that the vaccines are made available on a timely basis and in adequate supply in every country. The Cold Chain, the supply chain mechanism for pharma (and food provisions), thus acquires prominence in this context to guarantee no shortages of either in any country.

This May 2021 edition of Global Supply Chain turns the spotlight and shines the light on the supply chain regime for vaccines. The UAE, by virtue of its developed infrastructure and home to three major international air carriers, has earned for itself the distinction of being a major hub for the distribution and redistribution of vaccines and much-needed medical supplies.

The recently held 33rd Annual General Meeting of UAE’s National Association of Freight & Logistics (NAFL), held amid much fanfare in Dubai’s Versace Pallazzo Hotel, was cause for celebrations and brought much cheer and optimism to the logistics community in the country.

Sharjah’s Hamriyah Free Zone Authority (HFZA) has had a good track record since its formation in November 1995. We get a report card on its performance in an interview with Saud Salim Al Mazrouei, Director, 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 MAY 2021 3

May 2021 Issue 80

22 The Cold Chain

The Cold Chain—ensuring the streamlined procurement of pharma and medical supplies takes centre stage at the present time.

06

NEWS

Up to date news of the Global Suppy Chain industry

30 RSGT Dubai CommerCity 40 HFZA 42 ACME 46

Saudi Arabia’s newest container terminal holds potential and promise.

Launches new facilities in the Logistics and Business clusters Now operational for over 25 years, Sharjah’s premier free zone has a good track record.

The automation and robotics services provider is maintaining its momentum.

4 MAY 2021

50 ADNOC 52 Lufthansa Commercial Trucks OpEd 56 GCC FDI 58 AP Moller-Maersk 60 Abu Dhabi’s NOC has recently acquired two VLCCs.

Lufthansa Group has rolled out the sharkskin technology.

How the GCC commercial vehicles sector coped with the pandemic fallout Examination of the GCC investment landscape

The world’s biggest shipping company reports good Q1-21 results

DP World UAE Region is the first in the region to explore Quantum computing technology n DP World, UAE Region has taken a step forward to explore the power of Quantum Computing in the logistics and trade industry through collaboration and exploration with D-Wave and other global leaders in the quantum computing sphere.

This move will place DP World, UAE Region among the top organizations that are exploring the Quantum Computing technology to boost business and will help usher in a new era to optimize the supply chain.

DP World, UAE Region conducted intensive and focused training sessions on Quantum Computing, which included actual exercises and the use of Quantum Computing coding. The smart trade enabler identified industrial logistics, fleet, and traffic management elements, where

the power of Quantum Computing will be applied to revolutionize operations across the supply chain, a press statement said.

Quantum computers provide exponential processing power to solve complex problems. It can deliver parallel performance in certain applications better than classical computers. Quantum Computing will push the boundaries of digital transformation within DP World, UAE Region, starting a new phase of quantum transformation to process and solve complex computations.

“This move will enable us to achieve the quantum leap from traditional digital ways of functioning to wise and intelligent transformation,” affirmed Mohammed Al Muallem.

D-Wave is the world’s first commercial

Mohammed Al Muallem, CEO and Managing Director, DP World, UAE Region.

supplier of quantum computers, software, and services. DP World, UAE Region’s committed efforts in exploring Quantum Computing Technology will strengthen its position as a global trade enabler, providing benefits to the supply chain, logistics and trade and the end consumer.

Saudia Cargo inks digital partnership with cargo.one to accelerate expansion n Saudia Cargo and leading Germany based e-booking platform cargo. one have entered into a distribution agreement to provide customers across the board with first class digital booking experience. Freight forwarders will now be able to book Saudia Cargo’s real-time quotes on cargo.one within a matter of seconds and with instant confirmation.

“Saudia Cargo’s objective is to always deliver a premium customer experience.

We are convinced that cargo.one is the ideal partner to perfect our digital service offer,” asserted Omar Hariri, Chief Executive Officer, Saudia Cargo.

The airline strongly supports Saudi Arabia’s innovative Vision 2030. It is rapidly growing its fleet and digital transformation is key to its mission to become the region’s leading freight and logistics hub,” he further explained.

“We will be offering customers a proven and efficient online booking platform where they have access to real-time rates and immediate booking

6 MAY 2021

confirmations,” affirmed Teddy Zebitz, Chief Cargo Officer, Saudia Cargo.

“With cargo.one, we expect to further improve our operational efficiency. It will also enable us to quickly share and promote our ever-evolving freighter and passenger freighter network - such as our recently launched 5-weekly Liège (Belgium)-Riyadh service,” he continued.

“We are delighted that Saudia Cargo has chosen us as their partner to build a core component of their digital transformation. Saudia Cargo is a prime example of an airline that leverages and augments its existing systems to take a leap into the future of capacity distribution and pricing.” Moritz Claussen, Founder and Managing Director of cargo.one

OFCO joins forces with Mammoet to deliver logistical solutions

The OFCO-Mammoet deal signing ceremony.

n Abu Dhabi Ports’ offshore logistics service provider, Offshore Support and Logistics Services Company (OFCO–Offshore International), has announced the start of a collaboration with Mammoet UAE, following a newly signed Memorandum of Understanding (MoU) between the two organisations.

The integrated maritime logistics service provider OFCO, will work closely with the heavy lift and transport specialist Mammoet to create a unique integrated package of on and offshore turnkey transport and installation solutions for projects in the GCC. “The newly-announced collaboration marks a critical milestone in Abu Dhabi Ports’ ongoing efforts to foster an integrated logistics ecosystem catering to our commercial and industrial customers’ every need,” stressed Capt. Maktoum Al Houqani, Chief Corporate Authority Officer and Head of Maritime Cluster, Abu Dhabi Ports.

Initially targeting UAE-based projects with future ambitions to venture further into the GCC, OFCO and Mammoet will leverage their respective maritime, engineering, and logistical expertise, together with strategic positioning, infrastructure, and in-house assets, to create a joint value proposition that is both flexible and competitive.

This in turn will not only provide customers with a streamlined, flexible, and cost-effective solution for handling their heavy cargo transport needs but will also enable them to partner with a single service provider, rather than having to rely on several subcontractors to meet their supply chain requirements.

“The strategic alliance with OFCO is a testament to that, as our collaboration will reduce the number of interfaces within the logistics chain of projects, enabling the planning and operations to be streamlined, and therefore realising the most efficient and cost-effective approaches,” remarked Paul van Gelder, CEO, Mammoet.

Four tech start-up winners set to pilot projects with Gulftainer n Four tech start-ups from three countries are leading breakthrough work to transform the ports and logistics sector by piloting projects with Gulftainer. eYard, Morpheus Network, Throughput and ZaiNar have emerged as winners of Gulftainer’s Future of Ports 2021, which saw more than 2,000 applicants from over 200 cities vie to create disruptive technology that will reshape the sector.

Gulftainer recently concluded its Future of Ports 2021, a global pitch event offering tech start-ups a platform to showcase how their solutions can create a disruptive impact and address current challenges in the industry.

The winning teams were selected through a rigorous screening process across various categories comprising the Internet of Things and Robo-Doctors, Artificial Intelligence and Autonomous Drones, Big Data and Advanced Analytics, and Blockchain.

ZaiNar is an innovative application that enables realtime 3D location with sub-meter precision designed to transform how ports manage operations and assets. eYard has won the AI category for leveraging the technology to analyze thousands of potential operational scenarios that can create unprecedented levels of efficiency for container terminals.

Throughput, the winner for Big Data solutions, uses existing data to rapidly optimize supply chains and address operational bottlenecks.

Morpheus Networks, the winner of the blockchain category, offers a SaaS middleware platform that enables trusted and compliant data-sharing across the supply chain, unlocking broad opportunities to improve operational efficiency and customer experience.

Companies that seek to expand their offerings towards end-to-end services using new technologies will gain a competitive edge over the long term,” commented Charles Menkhorst, CEO, Gulftainer.

“We believe initiatives such as this are powerful catalysts to spur innovation. We are honored to be their partner in this endeavor,” remarked Nikhil Sinha, CEO, OneValley and Gulftainer’s partner in the global pitch.

MAY 2021 7

Dubai Customs completes 5mn transactions in Q1-2021, up 20% n Dubai Customs completed 5mn transactions in Q1-2021, according to latest figures. This is equivalent to double the number of transactions in the same period in pre-pandemic 2019, and 20% more than Q1-2020, in which 4mn transactions were completed, the Government entity reported in a press release.

“We will target new international markets and attract more foreign investments to achieve Dubai vision of raising trade to 2tn dollars in the next five years following the directives of HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE and Ruler of Dubai,” affirmed Abdullah Mohammed Al Khaja, Executive Director, Clients Management Division, Dubai Customs.

“We will actively participate in achieving the objectives of Dubai Strategic plan 2030 through building on what has so far been achieved in the emirate, which turned it into a regional and global hub for trade and tourism,” he continued.

Customs declarations grew 24% in Q1-2021 to 4.47mn (50,000 declarations a day on average) from 3.4mn in Q1-2020.

Payment requests came second at 238,400, followed by certificate and report requests at 141,800. Booking inspection date service received 76,700 requests and business registration service received 59,600 requests.

Transactions completed through smart platforms in Q1, 2021 formed 99.6% of the total 5 million transactions, with 67.2% completed through smart channels (3.4mn transactions), 32.3% through electronic

Abdullah Mohammed Al Khaja, Executive Director, Clients Management Division, Dubai Customs.

systems (1.6mn transactions), and only 23,500 transactions through the counters.

To bolster partnership with the private sector and stimulate business activities, Dubai Customs gave authorization to appointed car agencies to register their cars with the aim of saving time and cost.

Etihad Airways bats for sustainable, ecoFlights in 2021 n Etihad Airways has operated its first ecoFlight for 2021, continuing research and testing under the Etihad Greenliner programme to assess environmental sustainability initiatives during scheduled services.

This is Etihad’s fourth ecoFlight, operated on the airline’s signature Greenliner aircraft which is fully offset for all operations through 2021 as part of the airline’s mission toward carbon neutral flying.

The maiden 2021 ecoFlight, EY83, departed Abu Dhabi for Rome on April 17, testing a range of flight and engine optimization initiatives, as well as onboard product enhancements to reduce weight and single-use plastics, with successful trials to be incorporated into regular scheduled operations.

On board, the trial focused on three key pillars:

8 MAY 2021

sustainable products, incorporating initiatives identified on past ecoFlights to reduce single-use plastics, and an overall weight reduction study.

“Etihad made a significant and tangible commitment to sustainability when we launched the Greenliner programme in partnership with Boeing, GE and other aviation leaders,” remarked Tony Douglas, Group CEO, Etihad Airways Group.

The Rome ecoFlight saw the removal and replacement of 1,731 single-use plastic items from onboard service, with a weight reduction of 108kg, saving 60kg carbon dioxide emissions. Feasible initiatives trialed on the latest ecoFlight will be adapted for standard operations moving forward, contributing to Etihad’s goal to remove 80 percent of single-use plastics.

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Al-Futtaim Toyota Material Handling and DHL sign long-term contract for electric forklifts n Al-Futtaim Toyota Material Handling recently announced that it has signed a long-term supply and maintenance contract for 32 Toyota electric forklifts to be delivered to first-time customer DHL. DHL has already received 26 light-duty electric forklifts and the remaining units will be delivered before the end of this year.

The forklifts ranging from 2-tons to 3-tons are deployed across DHL’s warehouses located in the UAE. They are equipped with Toyota’s patented System of Active Stability (SAS). SAS works by continually monitoring the forklift’s operations and automatically taking protective action when needed.

The system takes over 3,000 readings per second to detect unsafe operating conditions and if a safety hazard is detected, the SAS activates one of its two main features – Active Control Rear Stabilizer System and Active Mast Function Control System, which improve lateral and longitudinal stability of the forklift.

“This deal further reaffirms our leading position in the material handling industry in the UAE. These electric forklifts provide substantial fuel savings and reduced carbon footprint also contributes to the UAE’s Vision 2021 to create and maintain

Al Futtaim Commercial Vehicles has signed a agreement to deliver Toyota electric forklifts to DHL.

a sustainable environment,” remarked Ramez Hamdan, Managing Director – Industrial Equipment (FAMCO, HINO, Toyota Material Handling), Al-Futtaim Automotive.

Ritchie Bros. reports a 40 per cent bidder increase at Dubai auction n Ritchie Bros.’ entirely online auctions continue to drive strong results for consignors around the world and the UAE. At the company’s recent auction, the world’s largest machinery and heavy equipment auctioneer, sold over 1,380 items through its Dubai auction site to online buyers worldwide.

The two-day auction in March attracted more than 1,470 registered bidders, an increase of 40 per cent compared to the same month in 2020, the company stated in a recent press communiqué.

Fully integrated demographic targeting strategies and digital marketing campaigns were key contributors to the auction’s success, attracting over 51,510 equipment searches on its web portal from around the Gulf region and further afield, leading to strong pricing for consignors.

“As our auctions are held entirely online, we are really able to focus our digital capabilities and demonstrate to sellers how Ritchie Bros. is uniquely positioned to extend our international reach into new markets using our easy-to-use Online Timed Auction system,” affirmed Eduard Faig, Regional Sales Manager, Ritchie Bros. Middle East, India and Africa.

Egypt emerged as the second-largest buyer market in the Middle Eastern region after the UAE for the first time, further demonstrating the effectiveness of Ritchie Bros.’ wide-reaching digital strategy, the press statement continued.

Particular categories with strong price performance included

10 MAY 2021

Ritchie Bros yard in Jebel Ali Dubai.

hydraulic excavators, wheel loaders, crawler tractors, motor graders, all-terrain cranes, rough terrain cranes, vibratory rollers and articulated dump trucks. Every item was sold without minimum bids or reserve prices.

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Oilfields Supply Centre makes US$ 570mn investment in King Salman Energy Park n Oilfields Supply Center Limited (OSC) has announced it awarded a contract for construction of their center in the kingdom with a total investment of US$ 570mn in King Salman Energy Park (SPARK).

The creation of the OSC base will measure one million square meters and include multiple areas and zones. The center is critical to localize the full energy supply chain, enabling investors to supply to the broader region’s and gain maximum benefit from their presence at SPARK. “OSC is providing pre-built industrial solutions which de-risk the set-up phase for investors and give them flexibility to rent industrial facilities and workshops on demand in addition to providing a full set of supporting services,” Dr. Mohammad Yahya Al-Qahtani, Chairman of the Board of Directors, SPARK.

“The creation of an oil and gas supply base on site at SPARK, the region’s only fully-integrated energy hub, is another example of how the project complements Aramco’s In-Kingdom Total Value Add (IKTVA) program, which encourages the development of a diverse, sustainable and globally competitive energy sector in the Kingdom,” asserted Iqbal Mohammad Abedin, Director, OSC. SPARK is on track to become the leading energy-centric ecosystem in the world, offering a foundation upon which the sector can innovate and grow. OSC’s initial investment is expected to contribute to further value creation, as it creates and maintains the oil and gas supply base and provides pre-built solutions for investors and partners of all sizes.

With 80% of its first phase infrastructure development completed,

Dr. Mohammed Yahya Al-Qahtani, Chairman, SPARK.

SPARK is the first industrial city in the world to obtain LEED Silver Certification.

The project draws green portfolio and experience of delivering engineering and design solutions, which aim to minimize the environmental impact of infrastructure development.

Tristar Group reports strong Q1-2021 performance n The Tristar Group has recently announced its management results for the three months ended 31 March 2021.

The Group’s performance in the three months ended 31 March 2021 showed solid progress compared to the three months ended 31 March 2020, the company revealed. Both EBITDA and net profit were up for this period.

The Group’s consolidated revenue continued to demonstrate resilience whilst EBITDA and net profit both reported an increase year-on-year by 9.9% and 9.3% respectively and above management budget driven by positive performance across all four segments.

“We pride ourselves on our longstanding relationships and repeat business with our global blue-chip clients, both of which have been key enablers to the company’s continued success,” commented Eugene Mayne, CEO, Tristar.

12 MAY 2021

Eugene Mayne, Founder & CEO, Tristar Group.

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Tradeling and JD.com form partnership to boost e-commerce trade in the MENA region

n Tradeling has signed a partnership agreement with Chinese e-commerce giant JD.com.

The collaboration will provide MENA business buyers access to tap into China’s fast-growing e-commerce market, in a further boost to advance the region’s B2B ecosystem.

Through the partnership, Tradeling will list brands and products from JD.com, China’s largest retailer, on its wholesale platform, Tradeling.com, giving MENA customers access to millions of high-quality Chinese brands.

The new partners will also look at opportunities for Tradeling to integrate and use JD.com’s logistic and warehouse capabilities for a fast delivery experience, leveraging JD.com’s unparalleled logistic capabilities and to help create a seamless B2B buying experience for MENA businesses.

“This partnership with JD.com will provide access to a key trade route to further enhance the buying power of regional buyers through highly competitive rates,” remarked Mohammed Al Zarooni, Director General, Dubai Airport Freezone Authority (DAFZA).

“Our partnership with JD.com will give businesses in the MENA region the ability to access products from Chinese manufacturers at competitive prices, while having the added benefit of JD.com’s logistic and warehousing services,”commented Marius Ciavola CEO, Tradeling.

“Leveraging JD.com’s global supply chain services, we will bring a wide range of quality products to customers in the Middle East and Africa through the partnership with Tradeling, catering to the procurement needs of MENA enterprises,”noted Marco Mao, Vice President of JD.com and General Manager of Europe, Middle East and America Region Business, JD Worldwide.

14 MAY 2021

Etihad Rail has achieved 25% progress of the O&M facility at Al Faya n A recent virtual meeting was held by Etihad Rail’s Board of Directors, chaired by Sheikh Theyab Bin Mohamed Bin Zayed Al Nahyan, to reflect upon Etihad Rail’s ongoing achievements of meeting its strategic objectives. In addition, the meeting highlighted the latest progress in the first quarter of 2021 of Stage Two of the UAE’s national railway network.

He commended the launch of the UAE’s industrial strategy, Operation 300bn, drawing the wide-range of success the nation relishes across various industries, expressing that Etihad Rail is developing a new and integrated industry that bolsters the sustainable development objectives of the UAE, through connecting industrial centres, ports, and commercial hubs.

During the meeting, the board members were briefed on the ongoing progress of the Operations and Maintenance (O&M) facility at Al Faya, Abu Dhabi, where 25% of construction has been completed over the last 12 months.

The facility will be the largest and the most significant on the network. It will be responsible for warehousing, installations, operations, and the maintenance of locomotives and wagons. The facility will also include an administrative building to control the operations of the whole network.

The board emphasised that the project’s development must be in line with international best practice, particularly implementing health and safety measures for the safety of all construction workers.

Deliverect raises US$ 65mn as it surpasses 30mn orders processed in 2020 n Deliverect, a Belgian scale-up that connects Talabat, Zomato, Jahez, Deliveroo, Carriage and more delivery companies directly to restaurants by POS system automation, announced that it has recently raised US$ 65mn in a Series C funding round from DST Global Partners and Redpoint Ventures.

Deliverect founded in September 2018, enables all types of restaurants to easily manage and grow their online orders. The platform eliminates the need for restaurant staff to monitor multiple devices and manually re-enter orders into their existing system, therefore dramatically reducing both staff workload and the probability of errors.

Deliverect processed more than 30mn orders in the past year alone, and is now averaging more than one million orders processed per week, an increase of nearly 750% from April 2020.

This is estimated to equate to more

Deliverect founders.

than US$ 1bn in order value and provides customers on average an increase of 25 percent in revenue as well as 80 percent decrease in order failures.

“There is a significant need for a company that can help restaurants

overcome these challenges, and Deliverect aims to become the global gateway for online food ordering and delivery, helping restaurants around the world to thrive online,” remarked Zhong Xu, Co-Founder and CEO, Deliverect.

Hope Consortium creates the largest ‘Freezer Farm’ in the UAE n Hope Consortium, an Abu Dhabi-led public-private partnership delivering large quantities of Covid-19 vaccines globally, has developed the largest “freezer farm” in the UAE. With static capacity to hold 11.4 million vaccine doses at ultra-cold temperatures of -80°C, the farm is part of the Hope Consortium’s efforts to boost Abu Dhabi’s vaccine storage capacity in 2021.

Abu Dhabi Ports, a founding member of the Hope Consortium, recently took delivery of 32 additional ultra-cold freezers at its advanced 19,000sqm cold and ultra-cold storage facility located in Khalifa Industrial Zone Abu Dhabi (KIZAD), bringing the total number of freezers from 21 to 53 units.

The ‘Freezer Farm’, complements the facility’s existing static capacity to store over 120 million vaccine vials at temperatures of 2°C to 8°C, along with

storage capacity for 11,000 pallets for support materials, including syringes and other medical equipment.

“By delivering well-planned logistics solutions hand-in-hand with a diversified vaccine supply chain, Abu Dhabi is ensuring a smooth flow of life-saving vaccines around the world to those who need them most,” remarked Captain

Mohamed Juma Al Shamisi, Group CEO, Abu Dhabi Ports, and Chairman of the Executive Committee, Hope Consortium.

“Abu Dhabi Ports is in prime position to deliver upon the promise of the Consortium in providing the hub as part of the global response to the pandemic,” commented Robert Sutton, Head of Logistics Cluster, Abu Dhabi Ports.

MAY 2021 15

KPMG to assess Cybersecurity for Aramco’s suppliers n KPMG Professional Services in Saudi Arabia has signed an agreement with Aramco, one of the largest energy and chemicals companies in the world, to examine and strengthen the cybersecurity compliance checks across Aramco’s thirdparties and suppliers.

Aramco has recently implemented the Third-Party Cybersecurity Compliance Certificate (CCC) Programme, a strategic initiative to certify existing and new thirdparties and suppliers before conducting business.

An MoU was signed by Hossain Alshedoki, Manager of Cybersecurity Advisory and ENR Cybersecurity Sector Lead, KPMG Professional Services, and witnessed by Abdulaziz Alnaim, KPMG Office Managing Partner in the Eastern Province of Saudi Arabia.

“Based on our analysis of minute-byminute technological disruptions and ever-changing cybersecurity needs, we believe that vital national assets such as Aramco need to be fully protected with state-of-the-art and seamless

KPMG-Aramco MoU signing ceremony.

cybersecurity systems,” remarked Alnaim.

“Third-party risk is a key risk in the area of cybersecurity, managing this risk will improve the cyber posture of organizations who heavily depend on external parties or suppliers,” commented Ton Diemont, Head of Cybersecurity, KPMG Saudi Arabia, Jordan, Iraq and Lebanon.

Issued certificates will be valid for two years. If a supplier is awarded a new

contract that involves a cybersecurity classification type that is not covered in the specifications of the valid certificate, a new certificate will need to be obtained and submitted.

The requirements for a new contract with Aramco will depend on the category of a bidder’s cybersecurity classification.

If the bidder falls under the standard cybersecurity classification, there is no requirement to apply for a new certificate.

GPCA calls for modernization of World Trade Organization to support chemical trade n The Gulf Petrochemicals and Chemicals Association (GPCA) has issued a list of recommendations for the modernization of the World Trade Organization (WTO) in line with supporting free and fair trade and enabling the regional chemical industry’s growth.

In a position paper released recently, the GPCA praised the WTO’s vital role in supporting trade in commodities and goods across the world. However, it highlighted that the organization needs to do more to achieve multilateral commitments from its members on further trade liberalization and emerging trade rules.

GPCA went on to recommend that the WTO, of which all GCC states are members, should take proactive steps towards its modernization in several

16 MAY 2021

key areas, including: process (reform) and substance (negotiations); regulatory cooperation on chemical substances to prevent barriers to trade; trade agendas to support sustainability; improved transparency, and effective enforcement of commitments.

GPCA estimates that regional chemical export volume declined by 15% - 20% to 66-70 million tons in 2020, due to significant demand disruptions in chemical supply markets as a result of the pandemic. Off the back of increased demand and gradual economic recovery, regional chemical trade is expected to increase by up to 10% in terms of volume in 2021.

“Ensuring the uninterrupted supply of chemicals to the world is a key imperative for global and regional leaders, as

Dr. Abdulwahab Al Sadoun

chemicals serve as key building blocks to scores of products and materials we use every day, and cater to many end-user industries,” avowed Dr. Abdulwahab Al Sadoun, Secretary General, GPCA.

DP World reports strong start to 2021 n DP World Limited handled 18.9 million TEU (twentyfoot equivalent units) across its global portfolio of container terminals in the first quarter of 2021, with gross container volumes increasing by 10.2% year-on-year on a reported basis and up 9.6% on a like-for-like basis.

The first quarter witnessed a strong start to the year and all three regions delivered growth, especially our terminals in India and Australia. Encouragingly, the stabilization in Jebel Ali (UAE) continues with the terminal handling 3.5 million TEU in Q1-2021, up 2.6% year-on-year, the ports operator revealed in a press communiqué.

At a consolidated level, DP World terminals handled 11.2mn TEU during the first quarter of 2021, increasing 8.2% on a reported basis and up 7.0% year-on-year on a like-for-like basis.

“Trade volume growth has accelerated and our strategy of providing integrated supply chain solutions to beneficial cargo owners has allowed us to benefit from this recovery,” remarked Sultan Ahmed Bin Sulayem CEO and Group Chairman, DP World.

“Looking ahead, while the near-term trading environment is positive, we remain mindful that the economic recovery can be disrupted by the pandemic, geopolitical uncertainty in some parts of the world and on-going trade war,” he added.

Turkish Cargo offers forwarders eBookings on WebCargo n Turkish Cargo will soon provide global forwarders the ability to conduct real-time eBookings, access live rates, and see available air cargo capacity through WebCargo, a Freightos Group company. This provides critical agility as air cargo contends with unexpected shifts due to the global pandemic.

“Live access to capacity and price supports our ongoing commitment to provide Hellman customers with outstanding service,” noted Christian Tesch, Director Airfreight Carrier Relations & Procurement at Hellmann Worldwide Logistics.

Turkish Cargo will first roll out on WebCargo in Spain and India, and will be quickly followed by roll outs in several more

countries. With the airline’s shift to global eBookings, more than 20% of global air cargo capacity will now be digitized, providing more than 2,000 WebCargo forwarders customers across over 10,000 global branches with instant access to capacity and pricing.

“As the air cargo brand with one of the widest networks in the world, we focus on digital solutions,” remarked Turhan OZEN, Chief Cargo Officer, Turkish Airlines.

“In the past year, eBookings have increased tenfold on WebCargo, making it clear that the future of air cargo is digital,” commented Manel Galindo, CEO of WebCargo.

MAY 2021 17

DHL Express MENA increases regional fleet capacity with 7 new Boeing 767-300Fs n DHL Express MENA recently announced the expansion of its regional aviation fleet with the addition of seven new Boeing 767-300F freighters scheduled to be inducted starting this month and gradually during the course of 2021.

This marks another milestone in the logistic company’s efforts to enhance its regional aviation network with modern, cost effective and reliable aircraft, and improve its air capability to better support the region’s logistical demands while supporting its GoGreen 2050 Mission.

“The new planes will support our objective to maintain a well-connected regional network and optimize our operations whilst simultaneously improving our environmental footprint in line with our zero-emissions strategy,” commented Nour Suliman, CEO, DHL Express MENA. The addition of the new planes will increase DHL’s overall load capacity by

over 33%, and will be used to service existing high-demand lanes across the GCC, extended Middle East, Africa and Indian Subcontinent which house some of DHL’s key commercial partners.

“The new aircraft will greatly contribute to enhancing our reach and service across key markets in the region such as Egypt, Saudi Arabia, UAE, Lebanon, Jordan, East Africa and on our

Asian lanes amongst others,” explained Richard Gale, Head of DHL Aviation Middle East and Africa.

In the past six years, DHL has almost doubled its regional aviation touch points and boosted international flights to over 175 per week, consistently increasing load capacities to vital trade links to cater to customer needs for better cross-regional and global connectivity.

airports. These codeshare operations will commence from the upcoming summer schedule of 2021.

“Both airlines have a long history of partnership, in which this expanded codeshare agreement further enhances connectivity, convenience and flexibility for travelers,” remarked Capt. Ibrahim S. Koshy, CEO, SAUDIA Air Transport Company.

“We look forward to strengthening our ties to offer better connectivity and services to both airlines’ passengers,” noted Captain Waleed AlAlawi, Acting CEO, Gulf Air. The codeshare represents a cornerstone in strengthening broader commercial cooperation between SAUDIA and Gulf Air, while also reflecting the deep and longstanding relationship between the two Kingdoms.

SAUDIA and Gulf Air hold discussions to enhance partnership n Saudi Arabian Airlines (SAUDIA) and Gulf Air recently held talks to discuss their close commercial relationships and explore ways to build on the ties by establishing a codeshare agreement.

The codeshare will further enhance seamless travel options for passengers of SAUDIA and Gulf Air, providing wider choices of domestic destinations in Saudi Arabia and other international destinations across each airline’s network.

SAUDIA will place its ‘SV’ code on Gulf Air flights from Bahrain to Riyadh, Jeddah, Tbilisi, Sialkot, Faisalabad, Baku, and Multan. On the other hand, the agreement will see Gulf Air place its ‘GF’ code on SAUDIA flights from Riyadh and Jeddah to Bahrain, Abha, Jizan, Yanbu, Aljouf, Ha’il, as well as Tunis–Carthage

18 MAY 2021

Ajman Free Zone registers 1,717 new companies in 2020; reports 23 per cent growth over 2019 n Ajman Free Zone (AFZ) announced that it witnessed significant growth in the number of newly registered companies in 2020 with a total of 1,717 new companies.

Based on the results of its operational performance, it increased by 23 per cent compared to the year 2019.

Offshore companies comprised 11 per cent of the total number of new companies, reflecting the high level of confidence of the international business and investment community as well as the economic competitiveness of the Emirate of Ajman. The education sector came on top as the most active sector in terms of investment, with a growth of 26 per cent.

Ajman Free Zone contributes 29 per cent in Ajman’s total exports and 35 per cent in the volume of re-exports The operating performance results for

2020 also showed the technology sector’s remarkable growth in terms of economic and investment activities, which grew by 20 per cent. The growth in the sector has positioned the emirate as a key contributor in providing advanced digital infrastructure necessary for the success of the UAE’s next 50 Years Plan.

HH Sheikh Ahmed Bin Humaid Al Nuaimi, Chairman, Ajman Free Zone, hailed AFZ’s outstanding achievements during an exceptional period when the world is going through unprecedented challenges due to the spread of the Covid-19 pandemic.

He highlighted that the free zone’s operational performance results for 2020 reaffirms its leading role in driving economic growth and attracting investments into the emirate.

HH Sheikh Ahmed Bin Humaid Al Nuaimi

Abu Dhabi Maritime Launches Digital Slipway Portal

n Abu Dhabi Maritime has announced today the launch of a new digital service to streamline the management of Abu Dhabi’s slipways — ramps for moving boats and other water crafts to and from the water — while also easing congestion at peak times.

The new fully interactive portal, developed by Maqta Gateway, Abu Dhabi Ports’ dedicated digital subsidiary, will provide direct digital access to all slipways owned and managed by Abu Dhabi Maritime, and services available at those locations.

As part of the second phase of their development, Abu Dhabi Maritime will expand the slipways’ scope to include such

services as engine and hull flushing, jet-ski rentals, and food services, rendering the slipways full-service locations. The three slipways are available for booking via the online portal.

The new additions brought the total number of publicly available slipways in the emirate to 26. In addition to providing the locations of all slipways available for the public, “With the introduction of our new online portal, we are not only marking the first step in digitising access to our waterways but are also helping ease access to all slipways located within the emirate by empowering our marine users with convenient booking options and choices,” remarked Captain Saif Al Mheiri, Managing Director, Abu Dhabi Maritime.

MAY 2021 19

Savoye, specializing in Robotics and Software for the supply chain industry, debuts in the UAE n Savoye, a global logistics solution engineering company, announced that it has established its own office in the UAE as part of its ongoing expansion in the Middle East.

The leading supply chain technology provider seeks to leverage the country’s geographical location and advanced logistics network to grow its markets and contribute to national efforts aimed at boosting industrial activities in line with the UAE Industrial Strategy 2030.

Savoye has a huge portfolio of solutions across 40 countries that combine hardware and software according to customer needs such as manual, semi-mechanized, mechanized, highly automated or robotic installations.

The company, which has made €155-million (US$ 188mn) turnover in the

Frédéric Zielinski, MD, Savoye EMEA

past year, provides cutting-edge equipment and warehouse management system (WMS) solutions which employ the latest digital technologies.

“The UAE has been taking strides in the growth of its supply chain and logistics sectors and we are confident that Savoye will find its place in the regional market. We are keen to actively take part in providing the best solutions for the industry which is poised to significantly serve the upcoming Expo 2020-21,” asserted Frédéric Zielinski, Managing Director, Savoye EMEA. “We believe there is a vast potential in the UAE market to expand our specialized logistics services as demand for data-driven intra-logistics services continues to grow and the UAE pushes ahead to achieve the UAE Industrial Strategy 2030,”he added.

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COLD CHAIN / VACCINE LOGISTICS

Key Challenges in Covid-19 Vaccine Logistics in India Vaccines administered per million daily, March 2021

ogistics services are crucial for the healthcare industry to deliver time-critical medical equipment and pharmaceuticals that require cold storage facilities. Some of the primary factors for vaccine logistics include cargo monitoring with supply chain visibility and traceability, vaccine temperature monitoring, and stability testing.

The United States, India, China, UK, Germany, and South Korea are some of the major vaccineproducing countries, with a production capacity of over 11 billion doses.

As the distribution of vaccines requires a strong global supply chain network, due to its geographic location, GCC could soon become one of the major logistics hubs by developing vaccine distribution infrastructure at some of its key seaports and airports.

administration. India’s vaccination program, which started on 16 January, is attempting to vaccinate 1.36 billion people.

In phase one of the Coronavirus vaccination drive in India, healthcare workers were given priority, while in the second phase, frontline workers associated with the containment of the virus were vaccinated.

This will be followed by vaccinating people who are 60 years and above and also the population residing at hotspots where the prevalence of Covid-19 is high. People with vulnerabilities will be given preference in this phase. As India moves to the next phase of vaccine administration, the number of daily vaccines administered is expected to improve significantly.

National Vaccination Programme

An adequate supply chain and logistics infrastructure, realtime visibility along the supply chain, micro-level planning to organize the administration of vaccines, effective planning and coordination among the agencies involved in vaccine administration, etc. are some of the factors expected to assist in overcoming vulnerabilities in the vaccine supply chain.

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To contain the spread of Covid-19, National Vaccine Programs are being implemented by many countries globally. Currently, the world average of daily administered vaccine is estimated at 1092 per million as of March 2021, with Israel, Chile, and United States leading vaccination

22 MAY 2021

Source: Our World in Data and Frost & Sullivan

TJ Sivan, a senior Consultant, Supply Chain & Logistics Practice, Frost & Sullivan, shares insights and highlights current status on the Covid-19 vaccine logistics in India.

Key Challenges and Growth Drivers

Vaccine production in India is expected to benefit from the financial support announced by the Quad nations to increase Covid-19 vaccine manufacturing by 1 billion doses. The stock of items such as syringes and gloves for the frontline healthcare workers is to be aligned with the expected increase in vaccine production in India in the next two years.

Infrastructure Currently, cold chain infrastructure is highly concentrated in urban areas. The inter-state disparity in the distribution of cold-chain points is another area that needs to be focused on to overcome challenges associated with vaccine distribution.

With an increasing number of Covid-19 cases in several states due to the second wave of the virus, a wider vaccination program is becoming critical for controlling its spread.

As a result, the vaccine supply chain network in India is expected to undergo transformational changes and open up opportunities for cold chain logistics service providers to meet the increasing demand for sourcing, procurement, manufacturing, distribution, and last-mile delivery of vaccines.

COLD CHAIN / VACCINE LOGISTICS

Emirates SkyCargo GDP certified pharma facility at Dubai International Airport

Emirates SkyCargo at the centre of global Covid-19 response through the Dubai Vaccine Logistics Alliance

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The carrier has to date transported around 59 million doses of COVID-19 vaccines on its flights

overnments and health authorities around the world are ramping up their efforts to protect communities from Covid-19 through large scale vaccine roll-out and it has been estimated that more than 1 billion doses of Covid-19 vaccines (data sourced from Our World in Data project) have been administered globally.

One out of every 20 Covid-19 vaccine doses administered around the world has transited through Dubai and has flown on an Emirates aircraft.

Emirates SkyCargo, the air freight division of Emirates has been leading the international air cargo industry in the transportation of Covid-19 vaccines and other essential pharmaceutical, PPE and food supplies during the pandemic.

GDP certified facility Emirates SkyCargo has a dedicated GDP certified facility at its hub in Dubai used for storing and transporting Covid-19 vaccines from manufacturing locations to a destination network spanning six continents.

With its modern widebody

aircraft, innovative equipment such as Cool Dollies and specialised containers, Emirates SkyCargo has been able to safely and rapidly deliver around 5% of the total Covid-19 vaccines administered around the world since October 2020.

In January 2021, Emirates SkyCargo joined hands with DP World, Dubai Airports and International Humanitarian City to form the Dubai Vaccine Logistics Alliance. The Alliance partners work together to facilitate the rapid transport of Covid-19 vaccines and related medical supplies through Dubai to developing countries.

The air cargo carrier has moved around 59 million doses of vaccines to more than 50 destinations around the world.

Emirates SkyCargo has also transported six different types of Covid-19 vaccines on its flights.

Partnership with UNICEF In February 2021, Emirates SkyCargo joined hands with UNICEF to expedite transportation of vaccines under the framework of the COVAX facility, aimed at equitable distribution of vaccines to global communities.

Dubai and the UAE have maintained their leading position at the centre of global logistics and supply chains during the pandemic. The UAE has also made rapid progress in vaccinating its citizens and residents against Covid-19, with more than 10 million doses of the vaccines administered to date. Emirates recently operated a special flight EK2021, to celebrate the UAE’s progress in its vaccination drive.

Emirates SkyCargo is a world leader in the air transportation of temperature sensitive pharmaceuticals and vaccines.

More than 200 tonnes of pharmaceuticals are transported around the world everyday by Emirates aircraft, helping deliver cures to global communities.

Emirates SkyCargo also has a specialised product ‘Emirates Pharma’ for the safe and efficient transportation of temperature sensitive pharmaceuticals.

The air cargo carrier has also been working closely with ground handling partners across more than 30 different destinations across the globe to provide enhanced origin to destination temperature protection as part of its pharma corridors programme.

MAY 2021 23

COLD CHAIN / VACCINE LOGISTICS

“The major challenge for vaccine deliveries is the need for speed” Thomas Sorensen, Senior Manager in the Cold Chain Unit, UNICEF Supply Division, talks about the work to ensure that cold chain facilities are in place to store and distribute COVID-19 vaccines.

Using cold boxes provided by UNICEF, porters carry vaccines to health facilities in Nepal.

Q: How are you involved in the roll-out of the Covid-19 vaccines?

A: The role of the Cold Chain Unit is to help ensure cold chain storage facilities are in place from the moment Covid-19 vaccines leave the manufacturer to the moment they are administered.

We are distributing these vaccines to some of the most remote corners of the globe, by cargo plane, truck, even by foot, and throughout the entire journey the vaccines must remain at a stable temperature to ensure they remain effective when they are used.

Q: What makes COVAX unique compared to other major missions or projects you have been involved in with UNICEF? A: We have been investing in cold chain infrastructure for vaccines that must be transported and stored at different temperatures.

The most common temperature range is 2 to 8 degrees Celsius, but we also procure and deliver ultracold chain equipment for countries upon request.

Tens of thousands of cold chain units, including fridges, cold rooms and cold boxes, have been procured, distributed and installed in health facilities around the world as part of regular UNICEF vaccination programmes – and this

24 MAY 2021

is really benefiting us now.

However, with Covid-19 we are operating with a lot of different vaccines with different cold chain and storage temperature requirements. Some of the COVID-19 vaccines may require storage at up to minus 70-degree Celsius, which is a challenge for existing cold chain infrastructure.

There is a lot of scenario planning that needs to happen.

The question is which vaccine will be coming, when and what sort of cold chain profile does it have?

Will it require 2 to 8 degrees, -20, or will it need extreme conditions of -70 degrees Celsius? Then we have to ask how that fits with a country’s existing cold chain capacity, and how we can make sure that the country is ready.

We need to work together with countries, manufacturers and partners to figure out how we address this. Agility to react to the scenarios as they unfold is one of the big challenges we have now, but it is also one we are overcoming.

Q: What is the biggest challenge you face in achieving the COVAX Facility’s mission?

A: The major challenge is the need for speed.

Our role is to work with governments to ensure the

appropriate cold chain is in place before the vaccines arrive in a country. The cold chain infrastructure should not be a delaying factor if we can avoid it.

Our current work on cold chain infrastructure has been carried out over the last few years and has created a very solid basis for the roll out. With COVAX we need to identify and address any gaps very quickly. The vaccine distribution scenarios are moving and changing in real time. While quickly addressing the anticipated gaps, we need to maintain a critical eye on ensuring that gap filling put in motion yesterday is also relevant tomorrow.

Q: In 20 years, how would you like people to tell the story of the COVAX Facility to children and young people?

A: I hope we will be able to say we made a difference.

To make a difference we need to be able to act very fast. As soon as vaccines are available, we must be able to deliver them, not only quickly, but also as an equal distribution among the most vulnerable population groups.

I hope we will be remembered for our rapid action and implementation which ensured the most vulnerable were able to access vaccines, equitably.

COLD CHAIN / HEALTHCARE LOGISTICS

MICCO’s new fleet of temperature-controlled vehicles boosts Abu Dhabi’s vaccine deliveries 11 specialised vehicles expand MICCO’s local finalmile vaccine delivery to 1.1 Million vaccine doses daily

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n a move designed to enhance the UAE’s Covid-19 vaccine supply chain, and in keeping with its strategic long-term objective to expand its overall capabilities, Abu Dhabi Ports has announced the acquisition of 11 new specialised refrigerated vehicles by its subsidiary, MICCO Logistics.

The acquisition, which is part of a broader strategy to expand and diversify MICCO’s growing vehicle fleet, boosts its local final-mile vaccine delivery capability to over 1.1 million vaccine doses per day.

The addition supports the work of the Hope Consortium, an Abu Dhabi-led public-private partnership developed to respond to one of the greatest logistical challenges in history by delivering large quantities of Covid-19 vaccines locally and globally from its hub in Abu Dhabi.

Expansion of the fleet extends Abu Dhabi Ports’ scope of services, as well as its range of supply-chain solutions for last-mile delivery certified by licence from the Department of Health–Abu Dhabi (DoH).

mUnity Supporting the Consortium’s mission, the vehicles are connected to ‘mUnity’, Maqta Gateway’s digital blockchain-enabled solution, which tracks the journey of vaccines through the supply

Hope Consortium The Hope Consortium is an Abu Dhabi-based public-private partnership offering a unique end-to-end supply chain solution capable of delivering large quantities of Covid-19 vaccines, from production to patients, anywhere in the world, safely, transparently and efficiently.

The Hope Consortium has pooled the collective expertise of its partners to provide multi-faceted logistics services to handle transport, demand planning, sourcing, training, and digital technology infrastructure, to facilitate vaccine availability across the world.

The Hope Consortium’s founding partners consist of the Department of Health Abu Dhabi, Etihad Cargo, Abu Dhabi Ports, Maqta Gateway, Rafed, and SkyCell. chain in real-time, ensuring safe, transparent and efficient product delivery to any location.

“By working closely with the Department of Health–Abu Dhabi (DoH), we are ensuring that MICCO is equipped with the most advanced chilled vehicles currently available on the market, elevating our emirate’s logistics capabilities for years to come,” remarked Robert Sutton, Head of Logistics Cluster, Abu Dhabi Ports.

Equipped with complete data loggers and advanced temperature monitoring, the brand-new fleet will be capable of carrying vaccines, medical equipment, or pharmaceutical products from Abu Dhabi Ports’ 19,000 sqm cold and

ultra-cold storage facility located at Khalifa Industrial Zone Abu Dhabi (KIZAD) to healthcare centres across the UAE. The fleet has been fitted with cooling equipment to support handling of vaccines requiring a temperature range of 2°C to 8°C, as well as -80°C with the addition of specialised packaging.

“This significant investment serves to boost MICCO’s overall capability to transport vaccines and other sensitive pharmaceuticals to all corners of the UAE safely and efficiently, and across a wide-range of temperature bands,” commented Clifford D’souza, Executive Vice President & COO, MICCO Logistics.

MAY 2021 25

New technologies set to accelerate data-driven healthcare transformation in the Middle East COLD CHAIN / HEALTHCARE LOGISTICS

The latest report by Arthur D. Little assesses the coming decade in healthcare and explores how technology can deliver optimal outcomes

T

he healthcare sector is undergoing a critical, datadriven transformation.

Arthur D. Little, the management consultancy firm with the longest-standing presence in the Middle East region, explores emerging technology trend including issues around increased data-gathering in their latest report entitled Data-driven healthcare: Analyzing the forces driving the transformation of healthcare.

The viewpoint provides insights on data-driven healthcare drivers and details how important technologies will facilitate industry transformation over the next decade.

The consultancy highlights that digital transformation in healthcare is the key to enhancing quality, boosting access, and driving efficiency. Moreover, it projects that clinical workflow will become

26 MAY 2021

Dr. Patrick Linnenbank

more agile by virtue of Artificial Intelligence (AI) and advanced analytics, ultimately automating decision-making processes while many important technologies reach mainstream adoption.

“As we look ahead to the coming years, the influence and impact of emerging technologies are already apparent. Because of the fundamental reform they deliver, a data-driven transformation is the first step in moving the industry forward,” remarked Vikas Kharbanda, Partner and Healthcare Practice Lead, Arthur D. Little Middle East.

Big Data “Big data is particularly significant for healthcare players due to the benefits it offers. It allows for more accurate staffing, standardized treatments, and fewer medication errors which will entirely re-

imagine existing medical practices.

Institutions at the earliest stages of their data-driven transformation journeys can take encouragement from various success stories where we have already seen emerging technologies implemented successfully across the Middle East,” he added.

Cleveland Clinic Abu Dhabi is one such example, becoming the UAE’s first hospital to achieve HIMSS (Healthcare Information and Management Systems Society) Stage 7. This model measures and advances an organization’s analytics, with Stage 7 meaning any given organization has robust analytics capabilities and uses the technology meaningfully.

Cleveland Clinic Abu Dhabi has established a data-driven culture to better serve patients and is using cutting-edge IT solutions to improve operations. For example, the clinic has leveraged various AI

COLD CHAIN / HEALTHCARE LOGISTICS

applications to enhance patient care and support clinicians during the ongoing pandemic.

Top rating Similarly, in the Kingdom of Saudi Arabia (KSA), King Khaled Eye Specialist Hospital (KKESH) is one of four hospitals nationwide to achieve the HIMSS Stage 7 rating.

Following successful digitalization, KKESH now analyzes medical data to bolster decision-making and facilitate processes. Moreover, the institution has fully digitized medical records and clinical services.

“Numerous Middle Eastern hospitals are pioneers in datadriven healthcare, and have proven strong examples for others to emulate,” continued Kharbanda.“For all their success, though, it is important for every player to appreciate that focusing

Vikas Kharbanda

solely on new technologies will not be enough to achieve the transformation they seek and require.”

Eight drivers of data-driven healthcare that have been identified can yield positive and negative outcomes. The report details how technology trends provide an essential foundation for the next generation of innovations and examines the challenge behind making data relevant, actionable, available, and interoperable.

Public-Private Partnerships Data security complexities, public-private partnerships, digital ecosystems, and skills development are all crucial ingredients for success, as well as taking into account patient participation and change

management issues in the healthcare industry.

Admittedly, the patient care revolution is still in its infancy, and value creation will hinge on vast amounts of data being processed and secured in order to overcome challenges more quickly than was previously possible.

“However, the introduction of AI, big data analytics, and cloudification are three of the many aspects driving widespread optimism throughout the wider health sector,”commented Dr. Patrick Linnenbank, Senior Advisor, Arthur D. Little Middle East.

“Although there are many obstacles to overcome on one side of the data-driven spectrum, the other end will present an array of opportunities, and the coming decade represents a period full of possibilities and potential for Middle Eastern healthcare as a whole,” he concluded.

MAY 2021 27

COLD CHAIN / HEALTHCARE LOGISTICS

Qatar Airways Cargo to support prioritization of vaccines Through its QR Pharma product, carrier will offer controlled cool chain

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atar Airways Cargo has signed a Memorandum of Understanding (MoU) with UNICEF for a five-year period to support UNICEF’s Humanitarian Airfreight Initiative.

Through this initiative, Qatar Airways Cargo will work closely with UNICEF and its freight forwarders to prioritise the transport of vaccines, medicines, medical devices and critical supplies utilising its extensive global network and capacity.

Through its QR Pharma product, Qatar Airways Cargo will offer controlled cool chain and dedicated monitoring, intervention and servicing as well as proactive re-icing at its Doha hub when required and will also adjust and increase its cold chain capacity to meet UNICEF’s forecasted requirements.

“The logistics around the transportation of these shipments is complex and being at the forefront of time and temperaturesensitive transportation, we understand the intricacies of a seamless cool chain and the criticality of transporting Covid-19 related shipments on priority,” commented Guillaume Halleux, Chief Officer Cargo, Qatar Airways.

“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” noted Etleva Kadilli, Director, UNICEF Supply Division.

28 MAY 2021

Qatar Airways has prioritized medical relief flights to India.

Qatar Airways Cargo supports India’s Covid-19 relief efforts

300 tonnes of aid from around the world departed in a threeaircraft cargo convoy from Doha to India Three Qatar Airways Cargo Boeing 777 freighters departed to India today, carrying approximately 300 tonnes of medical supplies from around the world to support COVID-19 relief efforts.

The three flights departed one after the other bound for Bengaluru, Mumbai and New Delhi as part of Qatar Airways Cargo’s WeQare initiative.

“We hope these and further shipments in the weeks to come will help ease the burden on local medical workers and provide relief to the impacted communities in India,” observed Akbar Al Baker, Group Chief Executive, Qatar Airways Group.

Recent cargo shipment included PPE equipment, oxygen canisters and other essential medical items, and consists of donations by individuals and companies around the world in addition to existing cargo orders.

Qatar Airways is the first global airline and one of only six carriers in the world to achieve the prestigious 5-Star Covid-19 Airline Safety Rating by international air transport rating organisation, Skytrax.

UNICEF’s Humanitarian Airfreight Initiative brings together a number of airlines covering routes to over 100 markets for the air transport of Covid-19 vaccines and other critical supplies in support of the COVAX Facility – the global effort aimed at equitable access to Covid-19 vaccines.

Qatar Airways Cargo played a major role during the pandemic

last year from the very early stages, ensuring vital aid and PPE is transported globally. The cargo carrier continued in the face of challenges, ensuring continuity of global trade and prioritised medical and aid shipments working closely with governments and NGOs to transport over 250,000 tonnes of essential supplies to impacted regions.

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RSGT EXCLUSIVE INTERVIEW

The newly acquired Gantry Cranes at RSGT

RSGT emerging as a clear rising star and a pivotal link in the global supply chain Red Sea Gateway Terminal, the largest operator of container handling facilities in the port of Jeddah (Saudi Arabia), is committed to developing regional and global infrastructure and facility investment to better serve the growing requirements of domestic cargo and container services. Thereby, it is assuming a larger role in the global logistics chain through targeted international expansion.

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SGT is the newest container terminal at Jeddah Islamic Port (JIP), the Kingdom of Saudi Arabia’s most significant port.

Through its layout, design, best in class equipment and cutting– edge technology this state of art terminal will enhance JIP’s overall capability to compete with the top ports in the world. Together with Tusker the adjacent Bonded & Reexport zone, this facility will create an integrated logistics hub for the Red Sea. Red Sea Gateway Terminal (RSGT) is an international terminal operator representing a partnership between the Saudi Industrial Services group SISCO and the Malaysian Mining

30 MAY 2021

Company (MMC).

Their combined assets, handling capacity and experience place the terminal operations among the ten largest container terminal operators globally, with a combined annual handling capacity of 20 million TEU, and equity-weighted throughput of over 10 million TEU. Jens O. Floe, CEO, RSGT, responded to a recent Global Supply Chain exclusive questionnaire to provide us the lowdown on a range of subjects – the genesis, evolution and developments at the port operator, its performance, the future and the impact of the pandemic, since it first emerged, on the Terminal’s operations.

Global Supply Chain: Briefly, provide us the history and origins of the RSGT? Jens O. Floe (JOF): Red Sea Gateway Terminal (RSGT) was established at the Port of Jeddah in 2009, as the first privately-funded Build-Operate-Transfer (BOT) port terminal development project in the Kingdom of Saudi Arabia.

The US$ 510 million ‘greenfield’ project was constructed adjacent to the LogiPoint Bonded and Reexport Zone, with the dedicated purpose of becoming the primary logistics hub for the Red Sea Region.

RSGT opened with 1,045 meters of quay, six new super postPanamax ship-to-shore cranes, an alongside depth of 18 meters, and

RSGT EXCLUSIVE INTERVIEW

an annual throughput capacity of 1.8 million TEU. The enterprise began as a joint venture between the Saudi Industrial Services Company (SISCO), Xenel Industries Limited and MMC Corporation Berhad (MMC), a Malaysian-based conglomerate with port interests including terminal operations in Tanjung Pelepas, Johor and Port Klang.

GSC: How have things shaped and evolved over the past over 12 years since the formation of the terminal?

JOF: RSGT’s area, infrastructure, operations, and expertise have significantly expanded since the first vessel call in January of 2010, carrying the first of the 500,000 TEU we would cumulatively handle in our first year.

In 2011 RSGT received its first Ultra-Large Container Ship (ULCS) call with the arrival of a 14,000 TEU “Mega Vessel; RSGT, ‘Home of the Mega-Vessels’ is the only facility at Jeddah Port able to accommodate vessels of 23,000 TEU capacity and above.

In 2014 RSGT was ranked 18th in global terminal productivity (and 3rd in the Middle East) in a Journal of Commerce study, with 103 berth moves per hour with a vessel alongside. In 2017 an expansion of the main terminal was completed, and the arrival of four new Super Post-Panamax STS cranes brought the terminal’s deployment total to 14.

In 2018, RSGT surpassed the 10 million TEU’s handled milestone, and by 2019 had become the largest container gateway on the Red Sea, reaching the 12 millionth cumulative TEU milestone.

RSGT signed a new 30-year concession with the Saudi Ports Authority which became effective in 2020, taking over the operations of the adjacent Jeddah Port North Terminal facility (previous Gulftainer terminal),

that resulted in a combined area of 1,500,000sqm, with 3,300m of quay length, 24 STS Cranes, and doubling annual container throughput capacity from 2.5 million TEU to 5.2 million TEU. Container throughput at RSGT in 2020 reached 2.8 million TEU, and we currently employ a diverse staff of over 1,700 dedicated personnel.

GSC: What are the future plans for the growth of RSGT? JOF: The strategy of the Red Sea Gateway Terminal is to continuously improve our services and infrastructure, as befitting the premier international trade gateway and logistics hub in the Red Sea Region, and to expand our international presence. A major component of the new 30-year concession agreement signed between RSGT and the Saudi Ports Authority, which officially went into effect in April of 2020, calls for the investment of US$ 1.7 billion in infrastructure, equipment, and

technology toward this goal.

By 2023 RSGT will be equipped with 24 Super Post-Panamax quay cranes, 63 Rubber-Tyred Gantry Cranes (RTGs), and 4,900 reefer plugs. By 2050, RSGT’s annual container throughput capacity will reach nine million TEU. In this way, we will be able to continue to meet the needs of Saudi Arabia’s growing role in international markets, as well accommodate the expanding trade in the Red Sea and north and east African regions.

We also continue to look for new opportunities and partnerships within and beyond the Red Sea Region; in 2019, for example, RSGT signed an MoU with the Bangladesh Ministry of Shipping, to jointly evaluate investments in, and provide operational assistance and expertise to this South Asian nation’s expanding port sector.

In January of this year, RSGT’s founding partners signed separate Share Purchase Agreements with

By 2023 RSGT will be equipped with 24 Super Post-Panamax quay cranes, 63 Rubber-Tyred Gantry Cranes, 4,900 reefer plugs and the annual container throughput capacity will reach 9 million TEU.

Jens O. Floe, CEO, RSGT

MAY 2021 31

RSGT EXCLUSIVE INTERVIEW

An aerial view of RSGT

32 MAY 2021

the Saudi Arabian sovereign Public Investment Fund (PIF), and with Hong-Kong based COSCO Shipping Ports Limited (CSPL), one of the world’s largest terminal operating companies.

At the completion of the transactions, based an enterprise value of USD 880 million, PIF and CSPL will become shareholders of RSGT with 20% shareholding each, while RSGT will retain the remaining 60% majority share, and continue to operate as an independent business enterprise.

GSC: RSGT is the ‘Largest Logistics Gateway on the Red Sea’. Please elaborate?

JOF: RSGT is the largest and busiest container terminal in the Port of Jeddah, on Saudi Arabia’s Red Sea coast, astride the world’s major seas trade lane, linking Europe to Asia and Africa, as well as the Middle East.

The Port of Jeddah, which handles approximately 70% of Saudi Arabia’s import shipments, is itself the second-busiest container port in the Middle East (after Dubai), and one of the 40 busiest container ports in the world, with a total container throughput exceeding four million TEU annually.

UK-based industry analyst Drewry Maritime Research’s Port Connectivity Index Ranking places the Port of Jeddah as the top port on the Red Sea in terms of direct service links to other global ports, far ahead of King Abdullah Port, in Saudi Arabia, and Djibouti.

Regionally, Jeddah is ahead of the Port of Salalah, Oman; Khalifa Port, in the UAE; and slightly behind Jebel Ali, in Dubai (the world’s 12-busiest container port). With container volume approaching three million TEU in 2020, RSGT handles at present approximately 7% of the Middle East’s total annual container throughput.

The planned increase in RSGT’s annual throughout capacity to ultimately nine million TEU, and its proximity to bonded logistics centers such as the recently opened Al-Khomra zone, will continue to solidify RSGT’s position as the largest, and most important logistics gateway on the Red Sea. GSC: What are key takeaways/ broad observations from a corporate perspective for RSGT? JOF: The recently announced equity share sales to Saudi Arabia’s Public Investment Fund, and

to Hong Kong-based COSCO Shipping Ports, the world’s second-largest terminal operator by equity-weighted throughput, demonstrates the great confidence that the international investment community and global port and shipping industry hold in the future growth of RSGT. The rapid growth of RSGT’s local operations at the Port of Jeddah has also caught the attention of Port Authorities, investors and shipping lines as a clear rising star and key link in the global logistics chain.

GSC: How has the pandemic impacted your business in the Saudi Arabia and the region?

JOF: It is important to note that while global trade levels dipped in response to the Covid-19 pandemic in 2020, operations continued without interruption at RSGT, and without the congestion and equipment shortages experienced by other major container ports worldwide.

RSGT was able to deliver the operational performance levels expected by clients, even as we made the necessary adjustments to office and operating procedures to conform with newly imposed health measures.

The transition to digitization of much of the paperwork associated with cargo payments and customs clearances was accelerated due to the safety procedures implemented in response to the Covid-19 Pandemic, eliminating the need for in-person visits to the terminal offices.

New procedures in response to the Pandemic included the introduction of a new RSGTChatbot service to enable customers to access services such as Real-Time Container Status, Invoice Generation, Pre-pickup Tickets, Return Depot Details, Custom Seal Number Details, and Vessel Schedules remotely.

GSC: How is RSGT better

RSGT EXCLUSIVE INTERVIEW

preparing to possibly avert and deal more effectively with this current situation?

JOF: In line with RSGT’s commitment to Process Excellence, we are consistently updating and improving operational procedures to anticipate and meet the emerging and evolving needs of modern container terminal operations.

Selected personnel from our team of 1,700 professionals participate in Lean Six-Sigma Training, for example, to instill this philosophy into our everyday standards of performance. We have found this to be an effective training tool, and a valuable component of our planning process, which emphasizes constant improvement in all aspects of our business and operations.

RSGT has historically strategically always aimed to create capacity and services ahead of demand. This has proven a winning strategy allowing us to cater for the largest vessels but also having the extra buffers needed when our customers require our special assistance.

The recent grounding of the ‘Ever Given’ vessel in the Suez Canal is a good example of that.

While many terminals and ports got very congested RSGT was able to step up to the plate and help our customers with extra vessel calls and increased flexibility and volume.

GSC: How important is technology in the new normal scheme of things and how is it enabling and empowering operation?

JOF: As larger vessels are introduced into the global fleet, terminal operations must adjust to shorter periods of high-intensity container movements off and onto vessels during their port calls.

The challenges of efficient terminal operations and

maintaining safety for all terminal workers can be met with the implementation of automation and other technology-based solutions.

The previously mentioned transition to digital documentation underway at RSGT decreases waiting times for truckers and reduces the need for personal office visits for cargo payments and clearances, saving customers time and money.

New hybrid technology on RSGT’s Rubber-Tired Gantry Cranes (RTGs), which are used to move containers within the terminal yard, combine diesel engines with battery operation to reduce fuel consumption, and harmful greenhouse gas emissions.

Such advances are an essential component of modern terminal operations, and safety protocols.

On the operations side, we have recently taken delivery of two state-of-the-art Ship-to-Shore (STS) cranes, each with a 70-meter reach, and a 52-meter height from rail level. The new cranes, representing an investment of approximately US$ 22 million, will be able to accommodate the latest and largest generation of container ships in the global fleet.

The new 65-ton twin-lift

capacity STS cranes, to be supplied by ZPMC in Shanghai, China, feature such advanced automation technology as a remote control; Optical Character Scanning capability; chassis alignment and automatic landing systems; vessel profiling, gantry, and trolley positioning systems; and intelligent status condition monitoring systems.

GSC: Can you tell us why RSGT would be the ideal partner for their customers?

JOF: RSGT is dedicated to providing world-class port and terminal operation to the global shipping community, with a commitment to environmental sustainability, corporate social responsibility, and workplace safety.

Our ambitious plan for the future, and established record of successes over the past 12 years, demonstrate the value of partnering with RSGT to meet the challenges of the future.

As the key logistics hub on the Red Sea, we are continuing to strengthen our vital regional presence, with a global perspective.

The success of our customers is our success as well, and we strive toward that goal every day.

Terminal Trucks at RSGT

MAY 2021 33

NAFL 33RD AGM COMMEMORATION

NAFL’s 2020 performance is commendable and upbeat

34 MAY 2021

Industry UAE Apex Body demonstrates buoyancy and resilience in the face of the pandemic

T

he 33rd AGM of the National Association of Freight & Logistics (NAFL) was recently commemorated amid much fanfare in the opulent ambience of the Al Jaddaf Waterfront Ballroom of the Versace Pallazzo Dubai.

The well-attended, in person meeting, conducted amid strict enforcement Covid-19 protocols and regulations, signaled renewed hope and optimism ahead for the industry despite challenges.

NAFL 33RD AGM COMMEMORATION

Assurance In her keynote address, Nadia Abdul Aziz, President, NAFL& Vice President, FIATA, lauded the Association’s 2020 performance and its resolve to stem the tide and buck trends. She assured that NAFL would stand shoulder to shoulder with members to empower and equip members in these challenging times.

Ms. Nadia assured the assembly that the NAFL stood rock solid behind its members and would endeavour to represent and work in their interest and to protect the interests of the industry. She expressed confidence that the current situation notwithstanding, the logistics and freight industry in the UAE would continue to grow from strength to strength.

MAY 2021 35

NAFL 33RD AGM COMMEMORATION

Ms. Nadia also reiterated that NAFL aims to support its members in these difficult times, by offering them sponsored trainings after the Eid Al Fitr holidays. She advocated a culture of openness and sincerity at NAFL so that all relevant and pressing industry issues are appropriately discussed internally and then communicated and conveyed to all concerned government offices through detailed reports on the challenges and solutions.

“NAFL will stand in solidarity and in unity and pledge to work closely with our members to overcome current difficulties and sustain their businesses,” she affirmed.

36 MAY 2021

NAFL 33RD AGM COMMEMORATION

Pioneer To this end, NAFL as a long-established, responsible representative body and the first of its kind in the GCC, is also working closely with the Government, other Governmental bodies and regulators to ensure that the growth, stability and viability of the freight and logistics sector in the UAE. Nadia further reiterated that the Government was mindful of both the importance and indispensability of the industry.

Simultaneously, both representation and engagement with associates, constituents and Government are pivotal to guarantee an ecosystem for progress and productivity.

Due to Dubai’s bold initiatives and the UAE’s global connectivity and excellent infrastructure, we are the global hub for the distribution and storage of vaccines and take the top place for humanitarian aid distribution. Thanks also to the logistics industry in the UAE which has risen to the occasion to make certain that movement and distribution of goods continues unimpeded, seamless and in a streamlined manner,” she observed.

MAY 2021 37

NAFL 33RD AGM COMMEMORATION

Highlights Some of the highlights of her speech were: • NAFL will be working closely with Expo 2020 and organizers and will ensure all members are advised and trained on all rules and regulations in line with Expo procedures and contracts.

• NAFL will be participating and supporting big global exhibitions during the Expo period such as Hypermotion show and the Air Show Cargo Connect Conference.

• Expo 2020 would be a great platform to network and engage with multiple national, regional and international stakeholders from over 190 participating countries.

38 MAY 2021

NAFL 33RD AGM COMMEMORATION

World Logistics Passport NAFL will continue a close interface and play an active role of the World Logistics Passport launched under the leadership, directives and initiatives of HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President & Prime Minister of the UAE and Ruler of Dubai.

The initiative, to enhance trade flows and build a network of trading mega-hubs, was launched at the World Economic Forum in Davos 2020. Members will definitely benefit from the fast expanding Global Reward Programme for freight forwarders and logisticians.

NAFL is also in the lead with a lineup of professional training and empowerment programmes in the course of 2021.

Also present at the AGM were several NAFL officials and office-bearers. These included Ahmad Abdul Razeq, Vice President; Sudesh Chaturvedi, Secretary General; Mathew Chacko, Treasurer; Majid Barzanji and Praveen Chandrasen, both Executive Board Members.

MAY 2021 39

E-COMMERCE

Dubai CommerCity launches new facilities in the Logistics and Business clusters Dubai CommerCity (DCC), the first dedicated e-commerce free zone in the Middle East, North Africa and South Asia (MENASA) regions, recently announced the launch of 470,000sqft of new facilities as part of its first stage in line with its planned schedule.

D

ubai CommerCity, situated in the Umm Ramool area in Dubai, is an AED 3.2bn (US$ 872mn), 2.1mn sqft project.

The launch of the new phase includes a built-up area of over 320,000sqft of offices spaces in the Business Cluster.

It also includes 145,000 sq-ft e-commerce logistics units and multi-client warehouses in the Logistics Cluster, which will be managed and operated by Hellmann Worldwide Logistics and DHL. Given its strategic location and the increased demand for its facilities and services, the new free zone managed to lease more than 51% of the logistics warehouses to companies launching their operations in different sectors, ranging from e-commerce, logistics and information technology to fashion, jewelry and electronics.

Key enabler HH Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of the Dubai Airport Freezone Authority (DAFZA), emphasized how the e-commerce industry has proven to be a key enabler of growth for companies and a new module adopted by many businesses to ensure business continuity as a result of the increased demand overall.

He added that the acceleration of digital transformation within

40 MAY 2021

supply chains and trade because of the pandemic, has spurred companies to ensure continued operations which are picking up with great optimism in 2021.

“The launch of Dubai CommerCity aims to lead the future of e-commerce business in the region. The project has been thoroughly studied not only to provide foundational solutions, but also to stimulate and support business and prosperity at a time when the sector is going through peak growth. The e-commerce

sector is key as its value is expected to reach US$ 148.5bn by 2022 in the Middle East, Africa and South Asia regions,” HH Sheikh Ahmed noted.

E-commerce rising “The GCC region is the fastest growing in the e-commerce sector, and the UAE comes in second place as it is expected to grow 38.3% Compound Annual Growth Rate (CAGR). The UAE is also ranked the fifth largest B2C

E-COMMERCE

products e-commerce market in sales within the Middle East, Africa and South Asia regions valued at US$ 4bn. The UAE companies in e-commerce account for 6% of the list of the 100 largest companies in the sector within the Middle East, Africa and South Asia region,” HH Sheikh Ahmed added.

“The launch of the new Dubai CommerCity facilities is set to attract specialized companies aiming to establish their regional headquarters in the emirate of Dubai, which helps them expand and develop their regional operations to be able to keep pace with the significant growth in e-commerce,” explained Dr. Mohammed Al Zarooni, Director General, DAFZA. The global e-commerce sector is expected to grow 16.6% CAGR between 2019 and 2022. The Middle East, Africa and South Asia region is also expected to grow 18.4%, the Middle East and North Africa region 24.9% and the GCC 32.9% CAGR, according to a Dubai CommerCity press statement.

Strategic partnership The launch of the facility is supported by the strategic partnerships signed by Dubai CommerCity and aims to support businesses to run effectively and seamlessly. The e-commerce free zone has signed agreements with Hellmann Worldwide and Logistics DHL Express that complement the efforts to grow and enhance the portfolio of services that Dubai CommerCity provides.

As part of the partnerships, Hellmann Worldwide will manage and operate a shared, multi-client warehouse within the logistics cluster of the free zone and clients will have access to last mile delivery services through DHL Express.

Dubai CommerCity’s customers will also utilize unique storage

HH Sheikh Ahmad Bin Saeed Al Maktoum

Dr. Mohammed Al Zarooni

options and pay-as-you-go payment model which are highly cost efficient and allow flexibility to scale their operations in line with demand. The strategic partnerships will allow for fast e-commerce fulfilment across the region and will provide a suitable and stable groundwork from where customers can grow businesses and enter new markets.

Hellmann will also provide end-to-end warehousing including services like order management systems and streamlined customs clearance processes. As part of end-to-end logistics services, Hellmann will also offer last mile delivery services, through its last mile partner DHL Express, from the warehouse directly to the consumer.

Agreements Dubai CommerCity has signed partnership agreements with Magento Commerce, a leading e-commerce software provider

and Redbox Digital, a global digital consultancy and platinum Magento implementation partner.

Focused on offering ‘E-Commerceas-a-Service’, the collaboration will provide Dubai CommerCity customers with tailored access to e-commerce solutions and services that will enhance digital experiences and brand growth.

E-commerce needs vary from one company to another, as such, customers will be provided with start-up, B2B, B2C and crossindustry solutions that have been exclusively designed for Dubai CommerCity to accelerate e-commerce adoption times.

The free zone provides advanced opportunities for global and regional manufacturers, as well as distributors and global e-retailers while offering a vast array of tax and investment incentives. Divided into three main clusters - Business, Logistics and Social, Dubai CommerCity seeks to meet the needs and expectations of logistics services providers and customers.

MAY 2021 41

INTERVIEW: HAMRIYAH FREE ZONE AUTHORITY (HFZA)

Counting on Quality and Competitiveness of Services and Facilities to drive growth As the UAE’s second largest industrial free zone, the Hamriyah Free Zone Authority (HFZA) has had a stellar track record over the past 25 years since its inception by an Emiri Decree issued by His Highness, the Ruler of Sharjah, on 12 November 1995.

T

he Hamriyah Free Zone spanning 26 million sqm (26 sqkm) in the Emirate of Sharjah boasts a 14 meter deep port and 7 meter deep inner harbour and a thriving industrial enclave that continues to attract new investments and grow from strength to strength.

Even in the wake of the pandemic, HFZA reported good performance in 2020 with

HE Saud Salim Al Mazrouei, Director, HFZA and SAIF.

42 MAY 2021

hundreds of new registrations in multiple sectors.

HE Saud Salim Al Mazrouei, Director, Hamriyah Free Zone Authority (HFZA) and Sharjah Airport International Free Zone (SAIF Zone), provided Global Supply Chain the lowdown and update of the Authority’s performance and developments.

The following is the transcript of the interview.

Global Supply Chain (GSC): We saw a lot of investors refrained from investing during the time of Covid-19, how have you promoted and marketed for HFZA during these challenging times?

HE Saud Salim Al Mazrouie (SSAM): In fact, the quality and competitiveness of our services and facilities is the key to promoting and marketing for HFZA.

INTERVIEW: HAMRIYAH FREE ZONE AUTHORITY (HFZA)

HFZA entrance

These facilities include but not limited to; full foreign ownership; 100% repatriation of capital and profits; no corporate and income taxes; and last but not least the comprehensive digital transformation in all services to speed up and simplify the transactions of our investors.

GSC: Have you inked new investment deals in the past year? If yes, tell us about the number of companies opened in 2020 up to today and in which fields they operate?

SSAM: We have been keen to entice quality investments that benefit the national strategies and plans, especially the economic diversification strategy.

In 2020, about 756 new companies were opened operating in petrochemical industries, medical and health equipment and products, food industries, and petroleum industries.

GSC: Tell us about HFZA’s

successful participation in the 26th Gulfood 2021?

SSAM: One of the important events in our annual agenda is the participation in Gulfood, which represents a leading platform for promoting and finding new markets for our domestic products, as well as spotlighting the outstanding benefits we provide to our investors.

Our participation this year was very constructive as we have successfully inked a deal with Al Aliyo Hydrofarms, a leading company in the hydroponic fodder farming industry. Apart from that, we held several meetings with businessmen and investors who showed their serious interest to set up their businesses in HFZA. GSC: Give us a glimpse of Sharjah Food Park which and how many companies operating over there?

SSAM: Sharjah Food Park is the first and largest integrated facility dedicated to the food industry across the region.

756 new companies were opened in 2020 from petrochemical industries, medical and health equipment and products, food industries, and petroleum industries.

Hamriyah Free Zone Authority Highlights • 100% full foreign ownership, repatriation of capital and profits.

• 100% comprehensive digital transformation in all services • 0% corporate and income taxes (no taxes).

• 756 new companies were opened in 2020.

• Sharjah Food Park extends over an area of 11 million square feet with more than 136 warehouses of different sizes.

• Sharjah Food Park is home to some 1700 companies.

• Sharjah Food Park also provides accommodations with a capacity of more than 26,000 workers.

MAY 2021 43

INTERVIEW: HAMRIYAH FREE ZONE AUTHORITY (HFZA)

Hamriyah Free Zone—Profile Established by Emiri Decree No. 6 of 1995, Hamriyah Free Zone Authority is presently home to over 6,500 businesses from 163 countries.

In addition to world-class facilities including offices, warehouses, factories and executive office suites, Hamriyah Free Zone also has over 15 on-site key business services, like banking and auditing firms, currency exchanges, conference rooms, staff accommodation, and more.

Uniquely located at the intersection between three continents, is an advantage as it allows HFZA investors and companies access to serve a growing market of 1.5 billion people in its hinterland.

Interestingly, the Emirate of Sharjah, the third largest in the UAE, has ports on both the Arabian Gulf and the Gulf of Oman that connects further to the Arabian Sea and onward to the Indian Ocean.

Extending over an area of 11 million square feet with more than 136 warehouses of different sizes, Sharjah Food Park is home to some 1700 companies operating in food manufacturing, preservation, packaging, re-packaging, import, and export to markets around the globe.

Sharjah Food Park also provides accommodations with a capacity of more than 26,000 workers.

GSC: The key investment trends during the pandemic were the investment in the medical warehouses or the production

of face masks; have you signed any relevant agreements in this segment in 2020?

SSAM: We were very focused on attracting the companies and investments operating in the medical industries. This culminated in the inauguration of a new headquarter for Medtra, one of the world’s major companies in the production and manufacturing of healthcare equipment and products.

The company operates in 40 countries worldwide and is projected to invest about AED 100 million (US$ 27.25mn) in HFZA.

+ 6,500 businesses + 163 countries + 15 key business services + 1.5 billion people served

HFZA port access

44 MAY 2021

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AUTOMATION & MATERIAL HANDLING

46 MAY 2021

Improving efficiency through robotics Investment in Robotics and Automation gaining ground globally and regionally

It’s no secret that the pandemic has accelerated the recognition, adoption and embrace of automation and digitalization across multiple sectors particularly manufacturing, retail and e-commerce.

Acme Intralog, a leading regional provider of material handling & warehouse automation solutions, is reporting new breakthroughs and heightened business, bucking trends even in the face of the pandemic.

M

Conveyor production at Jebel Ali

ore and more companies around the globe enhance their manufacturing process and supply chain to improve their ability to react to disruptions and new safety and distancing regulations while remaining competitive.

Based on the 2021 MHI Annual Industry Report, 53% of global companies are increasing their investment in Robotics & Automation, which represents the category with the highest substantial investments planned.

Acme, a leading regional developer of material handling solutions, is observing a similar trend in the Middle East, yet at a slower pace.

Manual labor still has a stronger foothold in logistics and material handling here than in some regions of the world. We therefore see bigger companies embracing the trend for automation a lot faster than smaller ones.

Bigger companies, particularly manufacturers and retailers, often already have some automated solutions along their supply chain yet tend to face a bottleneck when it comes to their end of line.

MAY 2021 47

AUTOMATION & MATERIAL HANDLING

About Acme Acme Intralog Fzco is one of the leading material handling & warehouse automation solution providers in the Middle East, developing tailor-made approaches for complex needs.

Founded in 1975 with its headquarter in Dubai, Acme optimizes intralogistics for customers across multiple industries, including retail, e-commerce, FMCG, food & beverage, pharma.

Their offering ranges from solutions for factory automation, sortation systems, pallet and tote storage and retrieval solutions as well as industrial automation components. Besides having a full-fledged manufacturing facility located in Jebel Ali Free Zone, Acme has a dedicated service team that provides 24/7 life cycle service and maintenance support throughout the GCC. As part of the industrial automation components vertical, Acme has established strong partnerships with leading global suppliers for years, bringing their technology to our region.

Robotic palletisation This is where robotic palletisation can fill the gap and handle a significantly higher throughput faster, more accurately and safer at a lower cost than conventional palletisers or teams of employees working in multiple shifts.

A lot of smaller companies are not yet on board with automating their end of line as their throughputs are more manageable and probably also due to the perception that a substantial investment is required to automate manual processes, particularly when it comes to robotic solutions.

Yet robotic palletisation can provide even smaller companies with significant competitive advantages. The investment for a

48 MAY 2021

basic yet efficient robotic solution typically pays off within 3.8 years on average, for larger installations this period shortens. As a rule of thumb, if a robot replaces just 3 headcounts, the return on investment is already higher when implementing automation.

Robotic palletisation is not just about the robot itself, which a number of companies offer as is. It is the system around the robot, using the right gripper and connecting conveyors, that create real competitive advantages.

Customization Being a system integrator, for Acme customization is key. None of their solutions are off-the shelf but each is tailored to the specific requirements and needs for each client, taking into account throughput, capacity, type of products and the expected return on investment.

The ultimate goal is to help regional businesses to truly optimize their supply chain by developing a solution through robotics, not just a robot alone.

Thanks to the vast opportunities for customization, robotic solutions can well integrate into already existing systems. And even

after initial installation, there is flexibility. When a company changes their product line at any point in time, Acme’s systems can be adapted to product ranges with different weight / size or special features a lot easier than other solutions and at a minimal cost.

Acme’s team has recently installed 2 palletising robots for one of their clients, Lubrex, increasing their end of line productivity by 210%.

Lubrex facility Being a leading manufacturer of high quality automotive, industrial and other lubricant solutions in the GCC and globally, Lubrex’ facility produces close to 200 types of products that come in 200 different shaped and sized packaging due to their individual specific handling requirements.

Until recently, these products had been palletised manually, allowing the handling of 30-35 pallets an hour best case at full capacity.

Lubrex decided to automate their end of line for two main reasons: to align the throughput of the palletisation with the much higher production capacity as well as to increase safety. Acme’s

AUTOMATION & MATERIAL HANDLING

solution which combines high speed roller conveyors and the use of robots with high quality grippers have increased the palletisation capacity to 80-90 pallets per hour.

They are also significantly increasing safety as the conveyors used are built with accumulation zones, which prevent boxes from touching each other and therewith avoid damage and leaks.

In-house tests This solution, like all of Acme’s systems, was first designed, manufactured and tested in-house before being built-up in Lubrex’ facility. This way, the customer could review their new technology and verify it suiting all their needs without any disruption of the ongoing production – by providing just one pallet of their products for testing real scenarios.

With only two robots, Lubrex is now able to better fulfill their demand and justify their production capacity, while drastically reducing manual labor in heavy duty jobs.

And Acme is close by for any support if needed, offering different types of maintenance contracts depending on any customer’s preference. The most common choices are warm-up support, where Acme is on site for the first months after installing a system, regular preventive maintenance or having a permanent person on ground who is operating the system.

Innovative solutions For other customers, Acme is currently designing and installing dedicated solutions as well. While requirements differ depending on industry and type of products being handled, robotic solutions can cater to all and solve challenges for any client. Just to name a few examples:

High capacity: FMCG companies typically produce a vast quantity of products every day, operating 24/7.

This requires approximately 2-3 shifts and a lot of people per day when palletising manually.

A robotic solution can match the production capacity better, at higher speed, while also enhancing safety standards.

Hygiene factors: while companies within the food & beverage industry often have similar needs as FMCG, safety and hygiene play a big role as well, maybe even more so since Covid.

Particularly when palletising liquids or fragile goods, robots are a lot more accurate, preventing damage and therewith avoid interrupting the process for cleaning after a leakage.

Size & weight challenges: some products across different industries are hard to palletize manually, for example 5 gallons water cans

or heavy products that come in sacks like cement / rice. Robotic solutions improve the process tremendously; they only differ from other solutions in terms of the model of the robot, gripper and conveyors.

Special care products: when handling chemicals, lubricants as in Lubrex case or toxic products, the safety for employees & maintaining packaging fully sealed is key. The precision in picking and moving that robots offer allow for highest safety standards.

No matter the industry or products, palletisation can be a bottle-neck in our region. Robotic systems tailored to individual needs are the way forward that allow both big and smaller companies to optimise their end of line significantly in order to be more competitive and thrive.

MAY 2021 49

With the acquisition of eight VLCCs announced in 2021, ADNOC’s crude transportation capacity has now increase to 16mn barrels

ADNOC

ADNOC Logistics and Services acquires two additional VLCCs

A

DNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics arm of Abu Dhabi National Oil Company (ADNOC), today announced the acquisition of two additional Very Large Crude Carriers (VLCCs), bringing the total number of VLCCs added to its fleet in 2021 to eight.

The VLCC fleet expansion plays a significant role in supporting ICE Murban Futures, which is

expected to boost trading of the UAE’s flagship Murban crude oil, enabling it to reach new customers and markets around the globe.

The growth of ADNOC L&S’s VLCC fleet supports ADNOC Group’s commitment to increase its crude oil production capacity by 25% to 5 million barrels per day (mmbpd) by 2030.

The new acquisitions include a new-build VLCC, equipped with dual-fuel technology, which is expected to be delivered in Q1-

2023, and an existing vessel that is scheduled to join the fleet in Q2-2021. These latest acquisitions mean that ADNOC L&S has now added a total crude oil cargo capacity of 16 million barrels this year.

“The acquisition of these VLCCs further consolidates our highly competitive offering, which covers the full spectrum of the oil and gas value chain,” asserted Captain Abdulkareem Al Masabi, CEO, ADNOC Logistics and Services.

ADNOC to explore potential of Hydrogen market with India

Dr. Al Jaber notes Hydrogen is in its infancy, but could be a game-changer Aligning supply and demand key to developing the Hydrogen economy of the future, the Abu Dhabi National Oil Company (ADNOC) is working with its partners to identify viable market opportunities.

ADNOC is keen to explore the Hydrogen market with India’s public and private sectors to support India’s growing demand for energy and need for cleaner fuels according to Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO, ADNOC. Speaking during a high-level ministerial session at a virtual Hydrogen Roundtable organized by The Energy Forum (TEF) in collaboration with the Federation of Indian Petroleum Industry (FIPI) and India’s Ministry of Petroleum and Natural Gas (MoPNG), Dr. Al Jaber reinforced the strong economic ties between the United Arab Emirates (UAE) and India.

50 MAY 2021

Growing demand “As India’s demand for energy grows, we stand ready to help meet that demand by making the full portfolio of our products available to the Indian market,” observed Dr. Al Jaber following remarks by Dharmendra Pradhan, India’s Minister of Petroleum and Natural Gas. ADNOC currently produces about 300,000 tons of Hydrogen a year as part of its current industrial processes. He expressed optimism that alongside the company’s existing infrastructure and commercial-scale Carbon Capture Utilization Storage (CCUS) capabilities, it can become a major player in the developing blue hydrogen market. ADNOC is also exploring the potential of green Hydrogen through the Abu Dhabi Hydrogen Alliance which was recently established by ADNOC, Mubadala Investment Company (Mubadala) and ADQ, Dr. Al Jaber added, as the company prioritizes blue Hydrogen.

ADNOC

Historic moment as world’s first Murban Futures Contracts commence trading Abu Dhabi’s position as a global energy hub reinforced as ICE Murban Futures launches on new IFAD commodities exchange

Dr. Sultan Ahmed Al Jaber

Smart fleet programme ADNOC L&S, which is the largest integrated maritime logistics and shipping company in the GCC, and owner and operator of the largest shipping fleet in the UAE, has been pursuing a smart fleet expansion programme, driven by increased demand from its affiliates, in particular ADNOC Trading and ADNOC Global Trading, and favorable asset prices for crude vessels.

In 2020, ADNOC L&S grew its fleet with 16 deep-sea vessel acquisitions. As a result of the additional fleet capacity, ADNOC L&S can further improve cost efficiencies while providing a comprehensive service to its customers.

The company is developing one of the most sustainable, modern crude fleets in the world. The vessels added are a blended mix of new orders (four new builds on order) and modern existing vessels (four recently acquired).

The latest acquired vessels have a length of 336 meters with a deadweight of 300,000 metric tonnes.

The existing vessel is equipped with a scrubber, which is an exhaust gas cleaning system that removes sulphur oxides from the ship’s engine, improving its environmental performance.

The Abu Dhabi National Oil Company (ADNOC) and Intercontinental Exchange (ICE) have, recently officially celebrated the start of trading of the UAE’s flagship crude oil, Murban, as a Futures contract on the new ICE Futures Abu Dhabi (IFAD) commodities exchange.

The high-profile launch event at Abu Dhabi Global Market (ADGM), was attended by HH Sheikh Mansoor Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, UAE. The introduction of the world’s first Murban Futures contract is the latest step in ADNOC’s ongoing transformation into a more market and customer centric organization. By making Murban a freely traded crude, similar to Brent or WTI, customers have better price transparency, flexibility to hedge and manage risks and increased access to Murban crude.

Alongside ICE and ADNOC, nine of the world’s largest energy companies and traders are joining IFAD as founding partners. This includes BP, GS Caltex, INPEX, ENEOS, PetroChina, PTT, Shell, Total and Vitol. Representatives from the partner companies joined today’s launch event at ADGM, many participating virtually from around the world.

Historic moment “This is a historic moment for ADNOC, Abu Dhabi, and the UAE as we celebrate the launch of the IFAD exchange with ICE and, with our partners, capitalize on the growing demand for high-quality Murban crude oil, particularly from markets in Asia,” commented Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO, ADNOC. “This historic and strategic milestone reinforces the UAE and Abu Dhabi’s status as a leading global energy hub and underscores ADNOC’s central role as a catalyst to empower the UAE’s economic ambitions.” He added

Earlier this month, ADNOC announced that its Murban, Upper Zakum, Das and Umm Lulu crude grades will all be sold destination free, from June, allowing its crude oils to become a freely-traded commodity.

Murban Prime Discovered in 1958, Murban has played a pivotal role as the bedrock of the UAE’s sustained economic development.

ICE Murban Futures are physically delivered contracts, with one futures contract equating to 1,000 barrels of Murban crude oil delivered from the ADNOC Terminal located in Fujairah, on the East coast of the UAE. Murban is ADNOC’s flagship crude grade, with production capacity of over 2 million barrels per day at present.

It currently accounts for around 50% of the UAE’s total production capacity, with plans in place to increase the production of Murban to more than 2.5 million barrels per day by 2030, in line with ADNOC’s goal of growing its production capacity to 5 million barrels of crude per day.

“With our outstanding partners, we are bringing a new benchmark to life, and just as Murban has powered the UAE for the past 50 years, with this new futures contract there is a tremendous future ahead for Murban as a price marker for global energy markets,” noted Jeffrey C. Sprecher, Chairman and CEO, Intercontinental Exchange.

“The launch of ICE Futures Abu Dhabi further reinforces Abu Dhabi’s status as a global energy hub,” remarked Ahmed Ali Al Sayegh, Minister of State (UAE) and Chairman of Abu Dhabi Global Market.

Murban Futures will trade globally on the ICE platform, one of the world’s foremost energy exchange networks. All trades clear through ICE Clear Europe, based in London. From today, Murban now trades alongside ICE Brent and ICE WTI in the ICE network.

MAY 2021 51

LUFTHANSA

T

he lower the frictional resistance of an aircraft in the air, the lower is the fuel consumption. Using nature as a role model, the aviation industry has been intensively researching ways to reduce aerodynamic drag for many years.

Now Lufthansa Technik and BASF have succeeded in making the breakthrough as part of a joint project. AeroSHARK, a surface film that mimics the fine structure of a shark’s skin, is to be rolled out on Lufthansa Cargo’s entire freighter fleet from the beginning of 2022, making the aircraft more economical and reducing emissions.

The surface structure consisting of riblets measuring around 50 micrometers imitates the properties of sharkskin and therefore optimizes the aerodynamics on flow-related parts of the aircraft.

This means that less fuel is needed overall. For Lufthansa Cargo’s Boeing 777F freighters, Lufthansa Technik estimates a drag reduction of more than one percent.

For the entire fleet of ten aircraft, this translates to annual savings of around 3,700 tons of kerosene and just under 11,700 tons of CO2 emissions, which is the equivalent of 48 individual freight flights from Frankfurt to Shanghai.

Environmental concern “Responsibility for the environment and society is a key strategic topic for us,” says Christina Foerster, Member of the Executive Board of Deutsche Lufthansa AG with responsibility for sustainability.“ This is an excellent example of sustainability in practice, achieved through partnershipbased collaboration and innovative technologies,” says Dr. Markus Kamieth, Member of the Board of Executive Directors, BASF. “The investments we have

52 MAY 2021

Lufthansa Group and BASF roll out sharkskin technology From 2022, Lufthansa Cargo will equip all Boeing 777 freighters with AeroSHARK

For the entire fleet of ten aircraft, this translates to annual savings of around 3,700 tons of kerosene and just under 11,700 tons of CO2 emissions

made in rolling out AeroSHARK at Lufthansa Cargo consciously reaffirm our commitment to the United Nation’s sustainable development goal on climate action,” commented Dorothea von Boxberg, Chief Executive Officer, Lufthansa Cargo AG. In its cooperation with BASF, Lufthansa Technik is responsible for the material specification, approval by the aviation authorities and performance of aircraft modifications carried out as part of regular maintenance layovers.

Approved aviation design Backed by decades of experience as an approved aviation design organization, the company will obtain a Supplemental Type Certificate (STC) for the 777F from the European Union Aviation

Safety Agency (EASA), which is required for operation.

“We have always used our wealth of expertise as a global market leader in technical aircraft services to also contribute to reducing the ecological footprint of our industry.

In doing so, we can leverage significant savings potential from all aircraft generations,”explained Dr. Johannes Bussmann, Chief Executive Officer, Lufthansa Technik AG. “As an expert in surfaces, we implement bespoke solutions for our customers. The innovative sharkskin technology allows us to support Lufthansa in achieving its sustainability goals and in making the aviation industry a little more environmentally friendly,”says Dirk Bremm, head of BASF’s Coatings division and also responsible for functional films in this role.

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FIATA LEARNING ACADEMY

RISKS FOR THE ENERGY SECTOR

Securing operational threats in Oil & Gas operations

As industry embraces an accelerated pace of technology usage heightened by the Covid-19, there is also an increase in cyber-attacks observe Niraj Mathur, Managing Director, Security & Privacy, and Manish Laligam, Managing Director and Industry Leader, Energy and Utilities, both from the Protiviti Member Firm for the Middle East Region.

A

s the world paces towards a phase of digitalization, exacerbated by the pandemic, cyber threats have taken an upward trend.

Whether it is the use of big data and AI to fight malware or the increased dependency on contact less services such as robots or drones, this dependency has opened a Pandora’s Box of notorious cyber-attacks and generated the need for building a resilient environment.

Operational technology (OT) in oil and gas sector has never been looked at from the security lens as it is today. Key enablers that have made OT security at the forefront of the discussion are:

Artificial Intelligence (AI), block chain has one common theme i.e., sensitive data that serves as bait to the cyber attackers.

Key vulnerabilities

The Oil & Gas industry is very often targeted by cyber criminals or hacktivists and the convergence of IT has only made it more vulnerable. Due to the complexity involved in maintaining OT systems, even the basic precautions tend to get ignored.

In a recent study, it was found that 71% of sites had outdated OS, 64% did not use encrypt their passwords, 27% of sites had direct internet connections, Convergence of IT with OT 66% of sites were not updating patches The adoption of IOT and modernization timely and 54% sites had devices Manish Laligam of OT systems has led to convergence accessibly remotely using standard with IT and removed the silo’s that protocols, fairly easy to hack. (Source: Manish has over 15 years’ experience existed between OT and IT. Emerging CyberX 2020 IIOT Report) in business strategy, risk advisory, technologies such as digital twins, The scope of oil and gas industry’s operations and implementation.

Robotic Process Automation (RPAs) value chain creates numerous As a business executive, Manish etc. have only expedited the need of possibilities of potential entry points for has successfully worked on several the merger. The convergence has thus these attacks, ranging from attacks on engagements with national and made OT susceptible to security threats physical infrastructure to disabling of international oil companies, creating normally targeted at IT systems. critical systems. The top 10 vulnerabilities new business opportunities, in control systems include: developing nationalized programs • Inadequate policies and procedures and enhancing shareholder value Availability over security • Remote access to the control system for investors.

Reliability and availability of the network without appropriate access control is of prime importance as opposed to • Weak access controls and unauthorized security. Hackers have often found ways to target the communications availability in turn costing millions to the company.

• Insufficient tools to detect and report on anomalous or inappropriate activity • Inadequate design control system network (no defense Dependency on technology in-depth) Industrial automation, control and safety systems used • Software used in control systems not adequately tested in the sector are to a large extent digitized. Use of RPA, or maintained

54 MAY 2021

RISKS FOR THE ENERGY SECTOR

• Use of control system network bandwidth for non-control purposes.

• Unauthorized or inappropriate applications or device on control system networks • Inadequate critical support infrastructure (Admin, network management and more) • Vulnerabilities in legacy systems.

• Protecting individual control system components from exploitation and applying patches and hardening guidelines periodically • Implementing a network topology for the control systems that has multiple layers, with the most critical communications occurring in the most secure and reliable layer.

• Timely Detection of security events and How to build cybersecurity incidents. consciousness and discipline among • Effective Response to security events employees and contractors and incidents • Providing logical separation between In November 2020, the UAE the corporate and control system cabinet agreed to establish the networks UAE Cybersecurity Council aimed • Maintaining functionality during at developing a comprehensive adverse conditions cybersecurity strategy to create a safe and Process and Governance: Develop, stronger cyber infrastructure in the UAE. deploy and religiously follow an effective Niraj Mathur While efforts are made at the national SCADA Security Policy and Procedures.

Niraj is an expert in Security Consulting strategy level, we need to maintain The essence of such a policy should cover: field with more than 20 years of discipline to give these strategies a • Regulations: Setting the tone right by regional and global experience, fruitful outcome. alignment of security policies with IEC managing large and complex projects.

Oil and gas facilities are critical 62443 and NIST OT guidelines His area of expertise includes security infrastructure assets, producing vital • Purpose: why this policy exists strategy, security architecture, security products for economies around the world.

• Scope: what is the context that the automation and security operations.

Protecting the supply chain and operations, policy covers? Have security policies Niraj has assisted many large clients therefore is not only of significant extend beyond IT to ensure gaps are in the area of compliance, risk importance for the enterprises involved in adequately covered? management, managed security services manufacturing of these products. It is also • The rules: what can and cannot be and formulating security roadmaps. for those who depend on and consume done? these petroleum products.

• Responsibility: who can do what?

A framework for Supervisory Control • References: reference to other policies and Data Acquisition (SCADA) systems is required to already in force identify, evaluate and treat the various types of risks • Revision history: a history of changes, who made targeting these systems. Such a framework can be derived them, when and why by putting in the following 6 parameters: • Enforcement: description of the consequences of acts • WHAT can happen to the system (risks) performed within the system • WHO can do it (agent) • Exceptions: if any, they must be reported in the security • WHY would someone do it (motivation) policy • WHERE these risks can affect (system components • Continuous Monitoring: Perform risk management targeted) periodically.

• WHEN can these risks be exploited by agents People: Lastly, to instill cybersecurity consciousness, (component vulnerabilities) an organization should organize employee awareness • HOW can the risks be executed (penetration tools & programs aimed at educating its employees and its methodologies) suppliers on security hygiene. Leadership teams need to There are 3 key verticals that are essential while take the onus for imparting such knowledge to functions considering SCADA Cyber Security in any organization: for instilling a security centered mindset as they continue • Technology – Solutions that aid prevention, detection, to resolve complex business problems. and response such as: As we strive in the digital world that will continue to • Restricting logical access to the control system network change with only more advanced versions and updates, and network activity it is imperative to reflect on our existing modus operandi • Restricting physical access to the control network and and continue to work with the mindset of creating a devices resilient organization.

MAY 2021 55

OPED-COMMERCIAL VEHICLES

How the GCC commercial vehicles sector coped with the pandemic fallout The pandemic has restrained growth across the board in the various facets of supply chain sector as many governments restricted the movement of goods across countries due to Covid-19. So how has the industry responded to the challenges posed by the pandemic? Ramez Hamdan, Managing Director– Industrial Equipment (FAMCO, HINO, Toyota Material Handling), Al-Futtaim Automotive, shares his insights.

I

t is a truism that commercial vehicle makers have also felt the impact due to trade restrictions and consumption decline, forcing manufacturers to slow down, or even halt production altogether due to lack of parts and components.

As the world continues to grapple with the worst crisis in living memory, the silver lining for commercial vehicle distributors came as a result of the meteoric rise of e-commerce – a trend which has been significantly more poignant in the GCC compared to other, more mature markets, where e-commerce penetration was already high.

In fact, during the lockdown period in the UAE last year, Al-Futtaim Commercial Vehicles (AFCV) recorded our highest sales for HINO trucks in a single month, largely due to the popularity of our HINO 300 Series light truck, which is ideal for e-commerce bulk pick up and deliveries.

During the strict lockdown period we were also able to obtain the necessary approvals from the respective UAE authorities and dedicated more resources to highdemand sectors such as FMCG, waste management, logistics, e-commerce and water distribution to ensure these critical sectors continued to operate smoothly.

56 MAY 2021

considering that online shoppers in the Emirates spend an average of US$ 122 per transaction, compared to US$ 76 in mature markets and US$ 22 in emerging markets.

In a nutshell, the higher the appetite and demand for online parcels and deliveries, the higher the demand for logistics services, from fulfillment, to storage all the way to last mile delivery.

E-commerce rising Adherence to safety We followed world-class standards for health and safety for our staff and customers, enabling us to provide total support to our customers without delay or disruption.

As a whole, the commercial vehicles sector is a key contributor to the AED220bn UAE logistics industry which ranks third globally behind China and India.

According to the UAE Federal Competitiveness and Statistics Authority, the commercial vehicles sector is forecasted to contribute 8% to the UAE economy during this year.

The role of e-commerce in this growth in the UAE is significant

Ramez Hamdan

The e-commerce sector in the GCC is set to reach US$ 50bn by 2025, on the back of strong growth driven by the Covid-19 pandemic. This projected surge in demand for e-commerce services in the region has underpinned a growing demand for the creation of more warehousing facilities, which is another area of AFCV specialization, with our wide range of Toyota Material Handling equipment’s.

With ever growing investments by the region’s two major platforms, Amazon and noon, e-commerce will continue to flourish, and with it, logistics services providers need to keep up with soaring demand for storage and delivery. This domino effect means that demand for commercial vehicles and storage

OPED-COMMERCIAL VEHICLES

equipment in the region will continue to rise.

Relevance is the key, whether facing the chaotic effects of a global pandemic or the unpredictability of technological innovations that are currently in the lab and will soon be on the roads.

Ultimately, the commercial vehicles sector and by extension supply chains and relevant industries and sectors, have an imperative need to continually adapt and overcome the challenges presented by the ever-changing business environment. The commercial vehicles sector must be well prepared to offer solutions and support to requirements as those arise.

At AFCV, we try to stay ahead of developments and doubled efforts to satisfy the sales and after sales activities following demand patterns and trends as required by our customers and business partners operating in essential industries.

AFCV Bee’ah.

Al-Futtaim HINO delivers 32 trucks to Bee’ah in Q1-2021

Delivery strengthens company’s position in the Waste Management sector Al-Futtaim HINO, franchisee of light, medium and heavy-duty HINO trucks in the UAE, has completed the delivery of 32 HINO trucks to Bee’ah, the Middle East’s sustainability pioneer and fastest-growing environmental management company.

This brings the total number of HINO trucks operating in Bee’ah’s fleet to 133.

The new deal further strengthens the Al-Futtaim company’s position in the Waste Management sector in the UAE following a deal last year with West Coast Saubermacher to supply 220 light, medium and heavy-duty HINO trucks.

Bee’ah will deploy the HINO light-duty Model HINO 300 Series 714NWB, 916XLWB and medium-duty HINO 500 series FD1024, FG1625, GH1927 trucks across its operations in Sharjah and Ajman.

“HINO trucks product adaptability, specification and durability give us a clear dominance in the Waste Management sector. This is primarily due to the continued trust customers place in our

products and our unique after-sales service–‘HINO Total Support,” remarked Ramez Hamdan, Managing Director– Industrial Equipment (FAMCO, HINO, Toyota Material Handling), Al-Futtaim Automotive.

In addition to providing service and parts, the Al-Futtaim group company is also supporting Bee’ah with its ‘HINO Total Support’ concept where experts from Al-Futtaim’s Commercial Vehicle Division provide eco-driving training to truck drivers to help them optimize total cost of truck ownership, a press communiqué stated.

This training helps fleet operators improve fuel efficiency, minimize the cost of wear and tear, reduce service and maintenance costs as well as insurance premiums and decrease the risk of major road accidents.

HINO has partnered with Al Shirawi Equipment and Precision Machinery for the customization of the body fabrication of the trucks to suit the specialized waste collection needs of Bee’ah.

MAY 2021 57

GCC FDI LOGISTICS OVERVIEW

Neighbourhood Watch: What’s happening in the GCC’s inward investment market in 2021?

How much of a magnet is the GCC for attracting new businesses and foreign direct investment (FDI)? In this contribution, Joe Hepworth, Director, OCO Middle East, and Founder of the British Centres for Business (BCB), examines the landscape and analyses the prevailing conditions and economic ecosystem in the region.

I

n August last year we had the milestone Abraham Accords signalling the rapprochement between Israel and the UAE and Bahrain; in January the Al-Ula Agreement was signed in Saudi Arabia to end the diplomatic stand-off with Qatar and to return the latter to the GCC fold; and in February 2021, Saudi Arabia signalled that multinationals wanting to win public contracts would need to have their regional headquarters in the Kingdom.

With so many significant initiatives and changes, it’s hard to keep up with what this actually means for companies looking at moving to, and growing, in the region, but I think it is possible to discern a few clear trends.

Firstly, for the short-to-medium term at least, the UAE’s position as the pre-eminent regional business hub is secure on the basis that, along with Bahrain, it’s the only

58 MAY 2021

country that can provide total regional connectivity to the whole of the Levant and GCC.

Founding pitch This very much plays back to the founding pitch for pioneer free zones like JAZFA, DIFC and DMCC – that they can offer complete regional access and that, ostensibly, they can support companies and investors from anywhere in the world.

Whilst the UAE’s regional play is intact, most obviously through Dubai, we’re also seeing the rise of challenger jurisdictions in the UAE. Ras Al Khaimah is one example, which, through RAKEZ, has built an international reputation as a cost effective and efficient place to set up manufacturing operations.

FDI is less interested in reputations and more attracted to practicalities, particularly post-

Covid, so a number of the newer and more agile locations are grabbing market share based on their more pragmatic approaches.

For Qatar, freshly back in the fold, there’s obviously a serious benefit for the likes of QFC (Qatar Financial Centre) and QFZ (Qatar Free Zone), that companies established there can now access the rest of the GCC, so we can expect to see more regional competition for investment from Qatar.

Logistics boost For the logistics sector, the most obvious manifestation will of course be the resumption of transhipment operations in Jebel Ali and KIZAD, much to the detriment of the Oman ports.

Indeed, that investment attraction in the Middle East is now altogether more competitive can only be of benefit to the

GCC FDI LOGISTICS OVERVIEW

investor companies themselves.

Gone are the days of ‘build it and they will come’.

We are now seeing across the region a very keen sharpening of offers and approaches, with increases in foreign ownership provisions, long term visas, access to residency and more, all becoming more common.

All of this coming in 2021, as we emerge from 12 months of Covidinduced chaos in many sectors, it means that there’s an increasingly compelling array of options for companies looking at the region for the first time, and that’s got to be good for the corporate world.

First-mover advantage You may think that this is bad for the UAE, and Dubai in particular, but the country’s first-mover advantage, established supply chains, international reputation, and mature industry ecosystems are not something that can be replicated easily or quickly elsewhere in the region, if at all.

Similarly, there’s the old adage that being the best house on the worst street is not really much of a positive, so the wider region improving its offer actually benefits the UAE regardless.

2021 will likely see a small flow of Israeli companies looking to establish operations in the UAE, however this is unlikely to be the breakthrough that many have predicted. Look beyond the few headline announcements, and there’s not actually a huge FDI flow there.

Rather, we expect to see Israeli firms establish commercial partnerships, and distributor and agency agreements in the UAE as they test the market first rather than diving in headlong.

Supply chains With UAE-Israel supply chains having, thus far, been limited by

Covid-19 rather than diplomacy, it will be interesting to see how both air and sea connections grow once we return to normality.

Whilst a bonded land corridor through Saudi Arabia is most likely a non-starter, everyone will be looking for the most efficient channel, so we expect DubaiTel Aviv to become a major air freight route which means that Emirates, with its greater cargo capacity on the B777, is likely to leapfrog FlyDubai and the regional passenger operators as a result.

Saudi Arabia’s recent diktat on regional HQs is obviously still being mulled over in boardrooms here and worldwide and, like all such announcements, details and substance are sought to understand exactly what this means and how it will be implemented and monitored.

Expo 2020, With the world’s focus on the region, there will be no better time to make a splash and claim the spotlight In many ways, this is no different to current practice in the Saudi energy sector whereby any company in the Aramco supply chain has to be locally registered and engaged in In-Country Value programmes.

Local connections This has obviously led to most international companies opting to do business through local agency agreements, so this is likely to be the main outcome with regards to the HQ ruling, certainly for SMEs, who wouldn’t have the resources to establish Saudi operations anyway.

Whilst we await this to fully play out, it’s probably a fair assumption that we haven’t seen the last of

the big news in this area for 2021.

Expo 2020 is likely to be a forum for both countries and companies alike to put their best foot forward, so I think we can expect a flurry of developments later in the year once Expo is underway.

With the world’s focus on the region, there will be no better time to make a splash and claim the spotlight, even if your competitor does the same the next day.

Joe Hepworth, Director, OCO Middle East, and Founder of the British Centres for Business (BCB) With responsibilities across all market sectors and multiple regional countries, Joe oversees trade and export support projects across the region and is responsible for delivering the company’s investment attraction services in the region. He also leads the company’s economic development consulting team for the GCC. As part of Joe’s work with OCO, he holds a number of other important client representational roles in the Middle East. He is Director for Missouri Department of Economic Development in the Middle East; Regional Director for IDA Ireland; Middle East Director for the Connected Places Catapult and has managed the UK’s Department of International Trade regional delivery contract since 2013.

(The views expressed by the author are his own and independent of Global Supply Chain)

MAY 2021 59

MAERSK GROUP

A

P Moller-Maersk had an exceptionally strong start to the year, with strong earnings and growth momentum across all our businesses in ocean, port services and logistics.

The company benefitted from strong demand in a market still influenced by the pandemic and significant disruptions in global supply chains, it reported in a press communiqué.

Strong demand coupled with significant operational challenges such as bottlenecks, lack of capacity and equipment shortage in global supply chains drove freight rates up significantly. At the same time, customers’ demand for truly integrated supply chains and simple, self-service solutions has never been more evident and this provides momentum, especially for logistics and digital solutions.

“AP Moller-Maersk delivered an exceptionally strong performance in Q1-2021 with record profit for the quarter. The high growth and profitability were driven by solid demand across Ocean, Logistics and Terminals. Strong demand led to bottlenecks and a lack of capacity and equipment, which drove up freight rates to recordhigh levels,” commented Søren Skou, CEO, AP Moller–Maersk.

EBITDA surge Overall in Q1-2021, EBITDA increased to US$ 4bn from US$ 1.5bn year on year and EBIT to US$ 3.1bn from US$ 552mn compared to same quarter last year, while revenue improved by 30 per cent to US$ 12.4bn.

Logistics & Services continued with strong growth momentum and revenue increase of 42 per cent in Q1-2021 to US$ 2bn, mainly driven by organic growth, but also with growth from the acquisitions of Performance Team and KGH Customs Services.

Also, Gateway Terminals had a strong Q1-2021 performance, with

60 MAY 2021

AP Moller-Maersk reports continued growth, high profits in Q1-2021 EBITDA increased to US$ 4bn from US$ 1.5bn YoY during this period revenue increasing by 24 per cent to US$ 915m from US$$ 740m led by higher volumes and storage income, while EBITDA increased by 52 per cent to US$ 323m from US$ 213m.

Guidance for 2021 • Given the result in Q1 2021 and our expectation that the exceptional market situation will continue well into the fourth quarter of 2021, the full-year guidance has been revised upwards on 26 April 2021 to: • Underlying EBITDA in the range of US$ 13.0-15.0bn (previously US$ 8.5-10.5bn) compared to US$ 8.3bn in 2020 • Underlying EBIT in the range of US$ 9.0-11.0bn (previously US$ 4.3-6.3bn) compared to US$ 4.2bn in 2020 Free cash flow of minimum US$ 7.0bn (previously above US$ 3.5bn) compared to US$ 4.6bn in 2020.

Soren Skou, CEO, AP Moller-Maersk

As part of the full-year guidance for 2021, the company now expects the current exceptional situation, with the demand surge leading to bottlenecks in the supply chain and equipment shortage, to continue well into the fourth quarter of 2021 versus previously expected to continue in Q1-2021 and normalise thereafter. As expected, profitability in Q12021 was above Q4-2020.

Ocean is still expected to grow in line with global container demand, which is now expected to grow by 5-7 per cent in 2021 (previously 3-5 per cent. in 2021), primarily driven by the export volumes out of China to the USA, with the highest growth seen in the first half-year.

For the years 2021-2022, the accumulated CAPEX is now expected to be around US$ 7bn (previously US$ 4.5-5.5bn), the press statement concluded.

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