GLOBAL SUPPLY CHAIN SEPTEMBER 2019 ISSUE

September 2019 Issue 62

ENHANCING THE BUSINESS OF LOGISTICS

Exclusive report

MATERIALS HANDLING INDUSTRY Movement, storage and control solutions to the fore

Riyadh Airport Logistics Centre Ready for Lift-Off

Trukkin’s High Road

The Techno-Logistics Platform in High Gear

Expediting Delivery

It’s all about the Velocity!

A NEW HOMECOMING STORY FROM TURKISH CARGO We used our experience and expe ise to help transpo the endangered griffon vulture Dobrila to its home in Serbia.

SCAN THE QR CODE TO WATCH THE MOVIE.

#MISSIONRESCUE

turkishcargo.com

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



All Matters Material Handling SIGNATURE MEDIA FZ LLE P. O. Box 49784, Dubai, UAE Tel: 3795678/3978847 04 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 handbook is accurate and timely, no liability is accepted by them for errors or omissions, however caused.

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

In a fast-paced, technology-centric global economy, fraught with challenges and increased demands on precision and punctuality, the importance and indispensability of effective and streamlined materials handling operations are now cast in stone for the logistics and supply chain industry globally.

With the cost of materials handling estimated to be between 20 to 25 percent of manufacturing costs, efficient material handling is crucial and critical to the success of a company’s warehouse and distribution operations. Businesses are keen to develop and deploy proven material handling solutions that reduce operational costs and boost productivity throughout their facilities.

Welcome to Material Handling Middle East 2019, the region’s biennial dedicated Show for warehousing, intralogistics and supply chain solutions that takes place from 3-5 September at the Dubai International Convention and Exhibition Centre.

Automation and AI-driven technologies are paramount determinants that are proving to be the point of inflexion and differentiation poised to change the face of Middle East’s warehousing industry, pushing advanced inventory control high up the industry agenda and sharpening cost-control, space optimisation and competitiveness according to industry experts.

Fadi Amoudi, the Founder and CEO of IQ Robotics, one of the exhibitors at Materials Handling Middle East, is an industry evangelist. In Amoudi’s estimation the robotics industry is dramatically changing the global business backdrop.

Within the Middle East region, Governments are focusing on digital transformation and the opportunity for fast-paced development, leveraging the potential offered by robotics. The UAE is already at the forefront in driving this change, with a clear strategy for the advancement of automation and next-generation technology development.

Elsewhere, we engage with Janardan Dalmia, Founder-CEO, Trukkin, the techo-logistics company that is making deep inroads and changing the face of the region’s truck and freight transportation business.

Our trio of eminent contributors—Tom Craig, Prof. Omera Khan and Andy Coussins, each from their individual fields of specialisations, also provide new and fresh insights on the changing industry landscape from their individual perspectives.

For the record, I wish to acknowledge SSI-Schaefer, the world›s leading provider of products and systems for intra-company material flows and waste engineering, for graciously agreeing the use of their supplied image for our Cover of this edition.

Our profound thanks!

Enjoy the read!

Malcolm Dias Editor malcolm@signaturemediame.com

SEPTEMBER 2019 3

September 2019 Issue 62 September 2019 Issue 62

ENHANCING THE BUSINESS OF LOGISTICS

44 DP World

DP World will partner with a Chinese company to develop the ‘Traders Market’.

46 GAC

GAC eyes Asia expansion; makes management changes in GCC.

06 NEWS 20 Materials Handling Middle East 2019 The region’s must-attend biennial exhibition dedicated to professionals across the warehousing, intralogistics and supply chain sector takes flight.

22 ACME As it heads towards industrial automation, one of Dubai’s oldest storage and materials handling company is on a roll.

24 KARDEX Germany’s Kardex Remstar, in partnership with UAE local representative Juma Al Majid, gets star ratings for its stellar products.

26 SPAN A leading consultant and solution provider of systems and equipment for distribution centres, supply chains and workplace requirements shows its mettle at MHME 2019.

28 CROWN The global manufacturer of material handling equipment, lift trucks and technology showcases its range of sophisticated products.

4 SEPTEMBER 2019

32 Riyadh Airport Logistics Centre The announcement of the proposed launch of an airfreight logistics centre at King Khaled International Airport in the Saudi Arabian capital is a milestone for the Kingdom’s logistics infrastructure.

34 LogiPoint-ARAMCO Chemicals LogiPoint has been nominated as the overseer for ARAMCO chemicals exports.

36 Trukkin The techno-logistics company is turning the truck transportation industry on its head.

40 Turkish Cargo The leading air cargo carrier is flying high with good financials and breakthroughs.

42 AG Auto-CMC CMC of Taiwan has launched a new genre of commercial vehicles through its UAE distributor.

43 PTV PTV’s Visum software will be harnessed to forecast passenger and freight cargo for GCC Railway.

47 SOHAR Port SOHAR Ports’ Teminal 2D is now open for leases.

48 Delivery Velocity Speed is paramount, speed determines the competition in E-commerce deliveries.

52 Shipa Freight

Technology is giving smaller companies the virtual scale and bandwidth needed to compete says online freight service Shipa Freight.

54 IVECO Commercial vehicles manufacturer recently held a convention in Istanbul, Turkey for its vehicle body builders.

56 Risks in Supply Chain Prof. Omera Khan examines risks in the supply chain continuum.

58 Artificial Intelligence

There is promise in decentralized AI for Middle East Businesses, says Andy Coussins of Epicor.

60 Lootah Senaeyat Industrial Warehouses Demand for warehousing facilities and storage space is on the upswing and supply is low says Lootah Real Estate Development.

Discover the IVECO world and all its news on: www.iveco.com, Middle East area.

Or call now the IVECO Representative Office: 00971 4 2994935

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Abu Dhabi Ports offers financial sops for Chinese investors

Falah Mohammad Al Ahbabi, Chairman of Abu Dhabi Ports

n Abu Dhabi Ports and Jiangsu Overseas

Cooperation Investment Co. Ltd. (JOCIC) have signed a five-year agreement with Industrial and Commercial Bank of China (ICBC) to make it easier and quicker for Chinese companies to do business

at Khalifa Industrial Zone (KIZAD), Abu Dhabi’s integrated trade, logistics, industrial and free zone.

Abu Dhabi Ports, the operator and manager of the Emirate’s commercial and community ports, and its subsidiary KIZAD have already established with JOCIC a 2.2 square kilometre ChinaUAE Industrial Capacity Cooperation Demonstration Zone at KIZAD under a 50-year agreement.

The Demonstration Zone forms part of the UAE’s support for China’s Belt and Road Initiative (BRI) and aims to attract more trade and investment to Abu Dhabi.

The agreement also reiterates the strategic position played by the Emirate to the major trade hubs along the BRI. During the recent state visit of HH Sheikh Mohammed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, to China, a MoU was

signed by Falah Mohammad Al Ahbabi, Chairman of Abu Dhabi Ports, Wang Bin, Chairman of JOCIC, and Chen Siqing, Chairman of ICBC, KIZAD providing even more attractive for foreign investors.

Through its branches in Abu Dhabi and Jiangsu, ICBC – the world’s largest bank by assets - will provide services for firms being incorporated at KIZAD by becoming a preferred banking partner of Abu Dhabi Ports and JOCIC. “Abu Dhabi’s strategic location and commitment to the Belt and Road Initiative has placed the Emirate in an advantageous position on the global trade map,” said Al Ahbabi.

“The UAE is attracting Chinese investment through our industrial cooperation zone at KIZAD thanks to strong confidence and sound industrialization policies, as well as its commitment to economic diversification,” commented Wang Bin.

FedEx appoints SAB Express as the global service provider n FedEx Express has appointed SAB

Express (SAB) as the global service provider for its international services, connecting Saudi Arabia with more than 220 countries and territories.

“SAB has been a long-term service provider to TNT business in Saudi Arabia, and following TNT’s acquisition

by FedEx, SAB Express became the licensee of FedEx Express in this dynamic market,” commented Sheikh Salah Al Balawi, Chairman and CEO, SAB Express.

“With SAB Express as FedEx licensee in Saudi Arabia, we are leveraging their comprehensive expertise in delivering an outstanding service across the country and building on our mutual strengths to connect customers to possibilities around the world.” remarked Jack Muhs, regional president of FedEx Express Middle East, Indian Subcontinent and Africa.

FedEx Express operates its extensive 6 SEPTEMBER 2019

Middle East Road Network, connecting Saudi Arabia directly to the UAE, Bahrain, Kuwait, Oman and Jordan. According to the Global Insight Report, in 2018, these six countries accounted for US$ 1.5trillion in gross domestic product.

With a rapidly developing airport, maritime, railway and road infrastructure, Saudi Arabia’s logistics market is valued at US$ 18bn and is expected to reach US$ 25bn by 2020. Cargo growth and industry investment is set to continue growing too. A special economic zone is under development at the King Khalid International Airport in Riyadh, focusing on integrated logistics.

SAB Express was established in 1998 to operate as TNT Express in the Kingdom of Saudi Arabia. With the acquisition of TNT Express by FedEx Express, SAB Express now serves both brands as a service provider in the Kingdom.

Bahri reports SAR 3.14bn revenues for H1-2019 n Bahri has reported growth in revenues

and operating income for the first six months of 2019. Revenues‫‏ ‏‬reached SAR‫‏‬ ‫‏‬‎3.14bn ‎(US$ 838mn) and operating income SAR 581.47mn US$ 155.11mn), recording an increase of 6% and 3% respectively compared to the same period last year.

Net income reached SAR 224.9mn (‎ US$ 60mn) during the first six months of 2019 in comparison to SAR 308.54mn‎(US$ 82.31mn) of the same period last year.

“Despite all the challenges impacting the maritime shipping industry, Bahri continues with its efforts to improve operations, adapt to the new developments and changes in the maritime industry, and maintain shareholder interest,” said Abdullah Aldubaikhi, CEO, Bahri.

Bahri’s revenues from the oil transportation business unit grew by 8% in the first six months of 2019 compared to the same period last year. Revenues from the remaining business units recorded a growth of 5% in comparison to the same period last year.

Full-scale operational trials conducted at Abu Dhabi’s Midfield Terminal Complex n Abu Dhabi Airports has conducted an Intermediate full operational trial of the Midfield Terminal Complex (MTC), as a part of the continuing development of the sophisticated Terminal Complex, and the ongoing Operational Readiness and Airport Transfer (ORAT) process.

The trials, which were designed to thoroughly test the new building’s capacity and facilities, involved more than 800 volunteers, and two Etihad Aviation Group aircraft, taking part in the recent simulation of the operation of the terminal.

Through a variety of scenarios, the trial teams and volunteers simulated passengers arriving at the terminal, transiting through the terminal, boarding the aircraft, disembarking the aircraft, passing through customs and immigration, utilising concierge services,

and departing from the terminal.

During the trial, Abu Dhabi Airports’ staff and strategic stakeholders were able to assess processes related to immigration, security, hand-baggage handling, immigration, baggage reclaim and customs.

“We are committed to ensuring the highest levels of operational excellence as we continue our journey toward becoming the world’s leading airports group,” affirmed Bryan Thompson, CEO, Abu Dhabi Airports.

With the Midfield Terminal Building is designed to be able to handle more than 8,500 people per hour. The terminal, which will be one of the region’s largest, is designed to handle tens of millions of passengers a year, with a baggage handling system that can process almost half a million bags a day.

Abdullah Aldubaikhi, CEO, Bahri The multi-billion dollar re-development and expansion of Abu Dhabi International Airport is designed to increase the overall capacity of the airport to more than 45 million passengers per year. As part of this redevelopment, a second runway and a third terminal have been completed.

SEPTEMBER 2019 7

Oman’s Khazaen Economic City master plan announced n The Sultanate of Oman’s Khazaen

Economic City (KEC) and master developer of the new 52 million sqm integrated economic city in Barka, has announced the detailed master plan for the first phase of the new project.

Located to the north of the capital, Muscat, Khazaen is the largest publicprivate partnership (PPP) project in the Sultanate of Oman and is already attracting investors through its combination of unhindered, deepwater access to international maritime routes; preferential market entry under Free Trade Agreements with the GCC, Singapore and the United States; as well as the city’s proximity to Middle East, South Asian and the African markets.

Making the announcement, Khalid Awadh Al-Balushi, CEO, KEC, highlighted the support of the ASYAD Group and welcomed the rapid approval of the master plan for the first phase.

“With the approved plan for the first phase of the city, KEC can continue to attract local and foreign investment to new, state-of-the-art facilities and units across the development,” Al-Balushi said.

Al-Balushi also explained how, following today’s announcement, local and international road-shows will be held to introduce the components of the master plan and its stages of implementation to new and prospective tenants – further supporting the economic growth of the Sultanate.

The city’s master plan for the first phase was developed by Atkins, a member

of the SNC-Lavalin Group, the lead consultant for Khazaen’s planning and design work.

“With over 50 years’ presence in the Middle East, Atkins has played a key role in supporting some of the Sultanate’s large-scale development projects. We are using our master planning and engineering expertise to deliver this project to the highest quality,” commented

Saudi Arabia’s King Abdullah Port to be equipped with the latest sophisticated cranes n King Abdullah Port has received 28

sophisticated Liebherr cranes to start the next phase of expansion of the Red Sea Gateway’s container terminals. Engineering teams are currently assembling the cranes, which are expected to become operational towards he beginning of next year, raising the port’s annual capacity to around 5 million TEU. The new cranes include 20 stacking gantry and eight ship-to-shore cranes.

The latter are among the largest of their type in the world, with an outreach of 70 m (25 rows) and a safe working load of 65 tonnes, enabling them to service mega container ships easily and seamlessly.

The stacking gantry cranes can handle seven containers high and feature a unique eight-rope reeving system as well as builtin anti-sway and anti-skew features. These 8 SEPTEMBER 2019

are designed to help the terminal operator achieve optimum levels of productivity.

Privately owned and operated, the 17.4sqkm purpose-built King Abdullah Port on the Kingdom’s Red Sea coast and within close proximity of the King Abdullah Economic City (KAEC) and its Industrial Valley and the bonded zone, was ranked the second fastest growing port in the world in 2018 by marine data firm Alphaliner. Its throughput increased

from 1.7 million TEU in 2017 to 2.3 million TEU last year, with a further significant growth rate anticipated for 2019 as well.

The port is making an increasingly important contribution to the Kingdom’s regional and global role in trade, logistics and shipping. Once fully built, King Abdullah Port will be able to handle 20 million TEU, 1.5 million CEU (Car Equivalent Unit) and 15 million tons of bulk cargo every year.

Tristar and Stevens Group form JV for hazardous goods in JAFZA

Baku Airport and Azerbaijan Airlines reach partnership with Amadeus

n Air travel has been on the

n Dubai-based Tristar Group and Netherlands-based

Stevens Group have launched Tristar Hazmat in the Jebel Al Free Zone which will provide logistics and supply chain management of hazardous goods and substances throughout the Middle East.

The joint venture brings together the diverse footprint and established network of the Tristar Group in the logistics and supply chain management across the Middle East providing the Stevens Group with a unique opportunity to deploy its niche products and services across the industry.

The Tristar Group’s core expertise lies in handling hydrocarbons, lubricants, chemicals and liquid gases with fully owned infrastructure to manage road transport, warehousing, fuel farms, turnkey fuel supply operations, into plane refueling services, chemical distribution, ship owning and chartering.

The Stevens Group has developed into one of the world’s leading specialist logistics and supply chain management networks for hazardous cargoes. Its client portfolio ranges across a number of industry sectors both domestically and internationally.

“The JV with the Stevens Group will complement our existing dangerous goods business and infrastructure to ensure that we import and implement international best practices for safe storage, handling and distribution of all classes of Hazardous Materials,” affirmed Eugene Mayne, CEO, Tristar Group.

“A key building block of the growth of our business and our global aspiration is to partner with best in class players in the industry with the footprint to maximize our products and services,” asserted Greg Stevens, Stevens Group Founder and CEO.

upswing in Azerbaijan, the oil rich Central Asian nation. In line with this drive for global connectivity, Heydar Aliyev International Airport in Baku has partnered with Amadeus to implement its core airport management systems.

Accordingly, the national flag carrier Azerbaijan Airlines is implementing Amadeus Altéa Passenger Service Systems (PSS) and Revenue Management solutions.

The airport will also deploy its key passenger processing systems using Amadeus’ cloud-based Airport Common Use Service. The move represents the first time an airport has relied on the cloud to deliver all its core systems.

The implementation of these new airport systems will enable worldclass operations at Baku’s international airport with all actors now working from a single, consistent view of operations without the need for manual updates.

Accordingly, the move to Amadeus’ cloud-based Airport Operational Database

(AODB) will ensure realtime awareness of airline schedule changes thanks to automated updates to the system. At every other airport in the world, teams rely on airlines to alert airports of such changes followed by manual updates to the AODB. “Our partnership with Amadeus will help us develop new revenue streams and improve operational efficiencies,” affirmed Jahangir Asgerov, CEO, Azerbaijan Airlines.

“Our multiple teams at Baku can now work more collaboratively to address thanks to our new cloudbased systems. We’re proud to be leading the airport industry in the adoption of cloud computing,” asserted Teymur Gasanov, Director, Heydar Aliyev International Airport.

“Successfully working with Baku to manage both its passenger and operational systems in the cloud is a landmark for Amadeus in the airport industry,” observed Bruno Spada, Executive Vice President, Airport IT, Amadeus.

SEPTEMBER 2019 9

Agility reports 8.1% rise in Q2-2019 earnings n Kuwait-based Agility has reported

second-quarter earnings of 12.99 fils per share on net profit of KD 21.6mn, an increase of 8.1% over the same period in 2018. Q2-2019 EBITDA grew 31.2% to KD 48.6mn, and revenue increased 3.2% to KD 396.3mn.

“We had a good Q2-2019 despite the tough environment we operate in.

GIL reported very good results and continues to implement its strategy to drive operational efficiency. Agility’s Infrastructure companies performed well, and key initiatives in each business unit are moving ahead according to plan,” noted Tarek Sultan, Vice Chairman and CEO, Agility.

The global Air Freight market continued to be under pressure. GIL Air Freight net revenue decreased 1.8% as the result of lower job volume and tonnage, although the decrease was offset in part by higher yields. Q2-2019 tonnage fell 8% vs. Q2-2018.

The decrease was the result of weak market conditions and lower demand

Tarek Sultan, Vice Chairman and CEO, Agility across industries and geographies, along with a return to more normal volumes following a spike in high-volume shipments a year earlier. The Air Freight market was affected by volume declines and shifts that have resulted from USChina tariffs and import restrictions.

Strong Ocean Freight performance was driven primarily by yield improvement, despite a 2% drop in TEUs. Ocean Freight performance was strongest in the Americas and Asia Pacific.

Tristar, a fully integrated liquid logistics company, posted 23.2% revenue growth in the second quarter, driven by increases in road transport and warehousing operations from new contract wins from new and existing customers, in addition to the shipping business. Tristar continues to execute and to look for opportunities to unlock additional value for its shareholders.

In Saudi Arabia, Agility Logistics Park (ALP) has completed the development of two of the three warehouses it is building in 2019, each with 40Ksqm capacity. ALP Saudi Arabia is now moving ahead with the development of the third warehouse.

In Africa, ALP projects are progressing well. New warehousing space at the ALP in Ghana will be delivered soon. More space in other locations will be added towards the end of 2019.

Grandweld Shipyards demonstrates good 2018 results n The UAE-based fully integrated

Grandweld Shipyards, has attained a number of landmark milestones during 2018. From environmentally friendly and sustainable services, to closing new deals; the company is making its mark in the maritime industry.

“Grandweld has been the trusted provider of workboats, security and offshore support vessels to a wide range of key players in the maritime industry; from offshore to ports and terminal operators. With the help of our in-house engineering and design team, we are able to tailor quality services to all our clients,” remarked Jamal Abki, General Manager, Grandweld Shipyards.

The company has also been witnessing high demand for it vessels, especially the 42M Crew Boats.

The company’s new facility at Dubai Maritime City (DMC) adheres to the highest environmental and sustainabili 10 SEPTEMBER 2019

Jamal Abki, GM, Grandweld Shipyards ty standards. “Designed with premium green building technologies and standards, our new facility at DMC has been awarded LEED Gold certificates by the

US Green Building Council (USGBC),” Abki noted.

Holding a LEED Gold certificate reinforces Grandweld’s efforts and status as a sustainable shipyard. LEED, or Leadership in Energy and Environmental Design, is the most widely used green building rating system in the world.

Available for virtually all building, community and home project types, it provides a framework to create healthy, highly efficient and cost-saving green buildings. The certification is a globally recognized symbol of sustainability achievement.

Grandweld’s latest achievement was highlighted with the signing of two new contracts; One with Wesal Shipping, and the second with Mars Marine Services.

Both companies are long term clients of the company. The contracts entail the delivery of two more GW42M Aluminum Crew Boats.

Cathay Pacific announces senior management shuffle n The Board of Directors of Cathay

Pacific recently announced that it has accepted the resignation of Rupert Hogg as Chief Executive Officer and Paul Loo as Chief Customer and Commercial Officer, according to an official press communiqué.

At a Board meeting, Augustus Tang was appointed Chief Executive Officer and Ronald Lam was appointed Chief Customer and Commercial Officer.

“Augustus Tang and Ronald Lam have the experience and depth of knowledge of aviation and our people to be strong and effective leaders of Cathay Pacific at this sensitive time,” commented John Slosar, Chairman, Cathay Pacific.

Harris Pye UAE consolidates presence in Egypt n Harris Pye Engineering Group UAE,

a global service provider supplying the offshore, marine and industrial sectors, recently signed a contract with Canal Sugar, a joint UAE-Egypt business venture.

Following the agreement, Harris Pye will supply five 40tph, horizontal, three-pass, and multi-tubular smoke tube boilers to what is expected to be one of the largest beet sugar production facilities in the world.

From the Egyptian company, the facility will contribute to filling the shortage in sugar production by 75%, providing supplies worth USD $650mn and exporting by-products worth US$ $120mn annually.

Harris Pye will showcase its worldclass engineering capabilities to execute the boiler system of Canal Sugar’s mega project in Al Minya, Egypt (350km south of the capital, Cairo). Utilising its well-equipped Sharjah workshop, Harris Pye will complete a portion of the fabrication required for the project before transporting it to Al Minya for the execution of the boiler system.

“The strength of Harris Pye lies in our ability to conceive turnkey solutions which best suit a customer’s specific requirements, and we are eager to apply this to meet the needs of this major project,” commented Mark Prendergast,

Chief Executive Officer, Harris Pye. The project of Canal Sugar aims at the development and reclamation of 77K ha desert land located at the West of Minya to grow 2.5mn MT of sugar beet per year in addition to other crops.

Moreover, investments of US$ 1bn and the refinery’s capacity of 900k MT/ year, highlight the major significance of the Canal Sugar project in bolstering two economies.

“These deliverables represent a critical component of our new state-of-the-art mega refinery project in Al Minya,” remarked Islam Salem, Chief Executive Officer, Canal Sugar.

SEPTEMBER 2019 11

Serco posts good H1-2019 performance figures

Phil Malem, CEO, Serco Middle East

n Serco, the international service

company that specialises in the delivery of essential public services, has announced positive results for the first half of 2019 as the global and Middle East markets remain attractive with significant growth prospects.

The company has revealed that revenue in the Middle East region for the first six months of this year was AED 753mn and from a global perspective, revenues increased by 8% to AED 6,716mn from AED 6,215mn.

“The Middle East remains a highly attractive market with opportunities that can bring in strategic expansion, which can be attributed to the size of the outsourced market, excellent reference sites and reputation,” commented Phil Malem, CEO, Serco Middle East.

Serco’s operations in the Middle East division include Transport, Defence, Health and Citizen Services, with the region accounting for approximately 11% of the Group’s reported revenue.

There was growth in revenue from the new contract for fire and rescue services at King Fahd International Airport (KFIA) in Dhahran, Saudi Arabia, as well as from expanded services at the Dubai Metro.

12 SEPTEMBER 2019

DMCA opens new Maritime Licensing Centre n Dubai Maritime City Authority (DMCA) has announced the inauguration of its newest registration and licensing centre in Umm Suqeim.

The new centre represents an advanced step towards providing a faster and more simplified approach in applying for marine transport licensing, which are based on innovative guidelines designed to conform to set maritime safety regulations, local environmental requirements and key international standards.

“We look forward to the new Umm Suqeim Customer Happiness Centre, which enables users to complete all transactions related to maritime licensing and

technical inspection in one place,” said Amer Ali, Executive Director, DMCA. The new centre serves as a unified platform designed to complete inspections, technical examination, registration and issuance of permits—helping save effort and time on the users of marine transport while also enhancing the levels of satisfaction and happiness of customers.

Hamed Ali Hassan, Director of Registration and Licensing Department, DMCA, explained that all offered services reflect the Authority’s keenness to provide best ways to ensure the management of maritime operations in compliance with local and international laws.

dnata announces management shakeup; three new top regional positions created n dnata has introduced

a new management structure consistent with the expansion of its International Airport Operations division.

The new structure includes three newly created Regional Chief Executive Officer (CEO) roles. Reporting directly to Stewart Angus, Divisional Senior Vice President, International Airport Operations, the Regional CEOs assume responsibility for dnata’s Stewart Angus, Divisional Senior VP ground handling and operations in the United cargo operations in multiple States, which covers 28 countries, managing a airports across the country, total workforce of 23,000 will continue to be overseen employees.

by David Barker, CEO, Ross Marino, a member of dnata USA. the dnata team since 2005, “Our new regional has been appointed Regional structure allows us to get CEO, UK & Europe. In his closer to our business and new role, Marino will oversee customers, operating with dnata’s operations at 13 consistent standards and airports in Belgium, Italy, systems. It helps us leverage Switzerland, The Netherlands synergies across the regions and the United Kingdom. and above all, ensure we Dirk Goovaerts, who constantly provide the best has joined dnata in 2019 possible services to our as Regional CEO, Asia customers at every airport,” Pacific, is responsible for affirmed Angus. managing dnata’s businesses The new structure of at 10 airports in Australia, the dnata’s International Airport Philippines and Singapore.

Operations does not affect Janis Balkens, who was dnata’s ground handling promoted to Regional and cargo operations in the CEO, New and Emerging UAE, which continues to be Markets in 2018, will continue managed by dnata’s UAE to lead the company’s Airport Operations Division operations at 35 airports in under the leadership of Steve Brazil, Canada, Pakistan Allen, Divisional Senior and Iraq.

Vice President. dnata’s extensive handling

DP World and Maspion Group partner to construct Port and Logistics Park in Indonesia n Two preliminary agreements between DP World and Indonesia’s leading conglomerate Maspion Group were recently signed today to build a US$ 1.2bn container port and industrial logistics park in East Java.

The exchange of agreements was witnessed by HH Sheikh Mohammed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of UAE Armed Forces and Joko Widodo, President of Indonesia.

Also present at the signing ceremony were the Indonesian Minister of Transportation, Budi Karya Sumadi; Minister of State-Owned Enterprises Rini Soewarno and Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO and Chairman of Ports, Customs & Free Zone Corporation.

Two term agreements aim to create a modern, integrated container terminal and industrial logistics park, expected to play a vital role as a trade gateway for Eastern Java. It includes cooperation in setting up Maspion International Container Port in Gresik, East Java, with an investment of US$ 1.2bn and 3mn TEUs of capacity using electric power in its operations to help cut carbon emissions.

An integrated 360 hectare industrial and logistics park could also provide a world class trade environment for Indonesian and international businesses to help drive economic growth and job creation.

“We believe this pact will further consolidate the excellent relations between the UAE, the Indonesian government and state-owned maritime services operator Pelindo 3 and take DP World’s presence in the country to a new level,” remarked Bin Sulayem. ”This collaboration is a major development for the two groups, and a new step in Maspion Group’s ongoing expansion,” commented Dr Alim Markus, President Director and CEO, Maspion Group SEPTEMBER 2019 13

Dubai ranks high in international maritime index for second consecutive year solutions that reflect the attractiveness, competitiveness and comprehensiveness for trading and shipping and the Xinhua of the local maritime cluster. news agency of the China Economic “We are exploring ways to enhance the Information Service based in London has confidence of regional and international ranked Dubai fifth in the International investors in the local maritime sector, Shipping Centre Development Index especially shipping, ports, engineering, (ISCDI) for the second consecutive year. training and maritime support services, Dubai’s ranking as the world’s fifth based on strong foundations of R&D, best maritime hub reflects its highly innovation and smart transformation,” competitive capabilities, which include said Sultan Ahmed Bin Sulayem, state-of-the-art infrastructure, worldChairman of Dubai Ports, Customs class maritime and logistics capabilities, and Free Zone and Chairman, Dubai a competitive business environment, Maritime City Authority (DMCA). and investment and free zones that offer International Shipping Centre integrated services the best in the world.

Development Index (ISCDI) follows a The Emirate has outperformed some methodology based on the assessment of the world’s top maritime centers of competitiveness in attracting including Rotterdam and Hamburg that maritime businesses and efforts to ranked sixth and seventh respectively. integrate creativity and innovation in Singapore topped the list for 2019, with maritime centers around the world, as Hong Kong second and London third Sultan Ahmed Bin Sulayem well as the vital role played by each and Shanghai fourth. of the candidates in stimulating the growth of the global Dubai maintained its fifth position globally, supported by a maritime sector. portfolio of advanced marine services and innovative logistics

n The latest report by Baltic Exchange

UPS’ subsidiary applies for FAA Certification for drone deliveries n UPS recently announced that it has applied to the US Federal Aviation Administration (FAA) for Part 135 certification to operate commercial drone flights in the UPS network under a subsidiary business called UPS Flight Forward.

The new subsidiary is a recently incorporated business that could receive Part 135 certification as early as this year, putting UPS on track to have one of the first fully-certified, revenue-generating drone operations in the United States.

“UPS is committed to using technology to transform the way we do business. UPS’s formation of a drone delivery company and application to begin regular operations under this level of certification is historic for UPS and for the drone and logistics industries,” said Scott Price, Chief Transformation and Strategy Officer, UPS. When approved, this certification lays the foundation for drone flights beyond an operator’s visual line of sight, and for flights occurring day or night. Such flights are highly restricted in the United States and approved only by exception.

“Innovation is at the heart of what we do at UPS,” added Rami Suleiman, President, UPS, The Indian Subcontinent, Middle East and Africa (ISMEA).

14 SEPTEMBER 2019

KPIC and Honeywell Technology partner to expand Al-Zour Refinery n Honeywell recently announced that Kuwait Integrated

Petroleum Industries Company (KIPIC) has awarded reconfiguration of the refining and petrochemical sections of its Al-Zour refinery to Honeywell UOP (Universal Oil Products). The newly designed complex will increase the plant’s output capacity of fuels and petrochemicals.

Honeywell UOP, a leading licensor of refining and petrochemical process technology, will revise the configuration and capacity of the refinery’s gasoline production facilities. The company will also supply technology licenses, design services, key equipment, and advanced catalysts and adsorbents to produce clean-burning fuels, paraxylene, propylene and other petrochemicals.

“Honeywell is committed to supporting Kuwait’s longterm growth and development in the energy sector, leveraging innovative technologies and advanced training programs to help achieve key objectives under New Kuwait Vision 2035 and KPC Vision 2040,” said Rachad Abdallah, President, Honeywell Kuwait.

When completed, this will be the largest integrated refinery and petrochemicals plant ever constructed in Kuwait. The refinery’s gasoline section will include a world-scale 98,000 barrel per day (bpd) RFCC (residual fluid catalytic cracking) complex for production of propylene, gasoline, and a UOP Selectfining unit to produce low-sulfur gasoline blending components.

Rachad Abdallah, President, Honeywell Kuwait In Kuwait for over 50 years, Honeywell has a long history of supporting Kuwait’s energy industries through leading-edge technologies, efficient business solutions, local training, research and development initiatives. Honeywell is the first company to build “Made in Kuwait” solutions to power digital transformation across the country’s growing oil, gas and petrochemical sectors.

The company also operates the Honeywell Automation College in Mina Abdullah, which delivers global training capabilities locally through more than 300 courses specifically designed to address the requirements of Kuwait’s power and water, oil and gas, and automation industries.

KIPIC is a new subsidiary of Kuwait Petroleum Corporation (KPC) set up by State of Kuwait to manage refinery, petrochemicals and LNG import operations in the Al-Zour complex, located south of Kuwait City.

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Indian specialist store sets up fulfillment centre in Dubai South’s E-commerce zone

n FirstCry, India’s largest specialist e-commerce store for baby

and kids products and a parenting community platform, has announced its entry into the UAE market with the launch of its facility operations in EZDubai, (E-commerce Free Trade Zone) Dubai South Logistics District’s E-commerce zone.

FirstCry is setting up a fulfillment centre at the free zone to enable the online shopping company to deliver goods faster to its customers across the country.

FirstCry is the latest addition to the host of companies benefitting from the ready-to-operate fulfillment centres in Dubai South, reducing the setup time to start operations by three months. The company is set to take advantage of the proximity of the facility to Al Maktoum International Airport to manage shipments coming from overseas and provide customers with wider choices of products for babies and kids.

“This latest development further boosts Dubai’s vision in building a leading global e-commerce hub serving the Middle East and neighboring regions,” commented Mohsen Ahmad, CEO, Dubai South’s Logistics District.

EZDubai is a 920,000sqm purpose-built E-commerce zone recently launched and designed to attract the world’s leading e-commerce companies and benefit from the sophisticated logistics facilities and business solutions provided by Dubai South to multinationals, small and medium enterprises (SMEs).

“We look forward to our partnership with EZDubai to help us build a globally integrated and efficient supply chain, thereby making available the largest and most curated product range with the fastest delivery promise for all parents in UAE,” noted Supam Maheshwari, Founder & CEO, FirstCry. The dominant presence of FirstCry in India, with a customer base of more than 10 million parents, is a result of its pioneering omni-channel footprint involving web, apps and close to 400 brick and mortar stores. In the UAE, FirstCry plans to start with its web and app services.

16 SEPTEMBER 2019

KIPIC signs wastewater treatment deal for its Al Zour refinery plant n Kuwait Integrated Petroleum Industries Company (KIPIC) has awarded Veolia the contract for the operation and maintenance of its refinery wastewater treatment plant in Al Zour in southern Kuwait.

The deal is a US$ 63mn contract for a period of 7 years.

It is one of the largest refinery complexes in the world under development. As soon as it is commissioned, the Al Zour refinery will have a production capacity of 615,000 barrels per day, increasing Kuwait’s refining capacity to over 1.5mn barrels a day.

Seeking an exemplary installation, KIPIC has chosen Veolia for the operation and maintenance of its future wastewater treatment plant, which will treat and recycle wastewater at the rate of approx. 1,500 cubic metres an hour, and will also be responsible for the sludge incineration unit.

“Major industrial operators such as KIPIC are expressing growing needs for operational excellence and compliance with increasingly stringent regulations in terms of discharging pollutants,” commented Christophe Maquet, Veolia’s Executive Vice President Africa & Middle East.

“KIPIC is keen to partner with internationally reputed entities such as Veolia to achieve its vision of becoming a leader in operating its integrated refinery, petrochemical and LNGI facilities,” remarked Khaled Anwar Al Awadi, Deputy CEO, KIPIC. Veolia group is the global leader in optimized resource management. The Group designs and provides water, waste and energy management solutions that contribute to the sustainable development of communities and industries.

‘Smart Court’ to handle JAFZA’s labour litigation

UPS recently announced that it has renewed its partnership with Emirates Foundation, a national organization set up by the Abu Dhabi n Jebel Ali Free Zone Authority Government to facilitate public-private funded (JAFZA) has signed a Memorandum initiatives for the empowerment of youth across of Understanding (MoU) with Dubai the UAE, to continue supporting road safety Courts for establishing a Virtual Reality campaigns in the country.

Smart Court to handle labour litigations The agreement was signed at UPS regional involving companies operating from the headquarters in Jebel Ali in the presence Free Zone and its business units. of Emirates Foundation Chief Executive A dedicated chamber for the ‘Smart Officer Maytha Al Habsi and Rami Suleiman, Court’ will be established at the Free UPS President for the Indian Subcontinent, Zone to conduct hearings and adjudicate Middle East and Africa (ISMEA). through live direct transmission As a continuation of the successful broadcasting sessions between the Dubai collaboration, the UPS Foundation has Courts judges and the parties concerned. approved a grant for 2019 to the Emirates An electronic link will be established Foundation in the amount of US$ 185,000. between JAFZA’s systems and the Dubai The grant will be split to focus on three key Court Service System (Labour Courts), areas: US$ 100,000 towards the joint UPS enabling the parties to connect securely.

Road Code Programme, US$ 50,000 towards Cases will be heard and disposed the Community Preparedness Programme of remotely as litigants will no longer and US$ 35,000 towards the Emirates need to be physically present at the Foundation regional conferences.

Dubai Courts premises, saving time “The UPS Foundation is truly honored to and promoting an efficient and practical partner with the Emirates Foundation, and approach to litigation.

UPS partners with Emirates Foundation to enforce road safety we highly regard the invaluable work that it is leading around the world,”commented Eduardo The technology-driven Virtually Reality Martinez, President of the UPS Foundation and Smart Court will be supported by high UPS Chief Diversity & Inclusion Officer. levels of cybersecurity systems, enabling the According to Martinez, UPS has pledged to judges, lawyers, companies and litigants to complete 20 million hours of global volunteering remain connected the entire time. and community service by the end of 2020. “ Using technology to enhance our legal

“Our partnership with the Emirates Foundation has always been results-driven systems is part of our policy of creating and we believe that the UPS Road Code new value for our shareholders and is Program is a demonstration of our joint inspired by Dubai’s goal of building a hands-on approach and our commitment to Smart City,” explained Mohammed Al ensuring the youth of today are the strength Muallem, CEO and Managing Director, of tomorrow,”concluded Martinez.

DP World UAE Region and CEO, JAFZA.

Solutions for a healthy world Tranzone operates a state-of-the-art 3PL warehouse in Jebel Ali Free Zone. We have partnerships with the leading pharmaceutical, medical device and animal health companies around the world.

Healthcare Logistic Services: Air Freight Sea Freight Land Transportation Value Added Services Warehousing & Distribution Return logistics Documentation Tranzone FZCO (Member of Banaja Holdings)

Jebel Ali Free Zone (South) Plot No: S20129 P.O Box : 262955, Dubai, United Arab Emirates, Tel : +971 4 811 0000

Web: www.tranzone.ae JULY/AUGUST 2019 SEPTEMBER 2019 15 17

KIZAD and AIPMA open new investment opportunities for Indian polymer companies n Khalifa Industrial Zone Abu Dhabi (KIZAD), a subsidiary of Abu Dhabi Ports, has signed a strategic agreement with All India Plastics Manufacturers’ Association (AIPMA) to support Indian polymer investors in expanding their geographic and economic reach through KIZAD. The recent agreement, signed in Delhi, underscored KIZAD Polymers Park’s access to raw materials from regional producers and connectivity through KIZAD’s major transport links, which include Abu Dhabi Ports’ flagship deep-water port, Khalifa Port as well as international airports.

“We look forward to hosting Indian businesses at KIZAD and supporting the location, position and business ecosystem. Our aim is to provide investors from all over

the world an enabling environment to do business and a platform for growth that is unparalleled in the Gulf and the Middle East region,” commented Captain Mohamed Juma Al Shamisi, CEO, Abu Dhabi Ports.

“India has an enormous plastic and polymers manufacturing industry and the UAE is one of our top five import markets,” remarked Meela Jayadev, President, AIPMA. KIZAD Polymers Park caters to a variety of different polymers segments, including industrial use, such as packaging, construction, and semi-finished products; enduse customers, such as household goods, agriculture and hygiene products; material science, including compounded and composite materials, and 3D Printing.

UAE’s GCAA to hold ‘Global Investment in Aviation Summit’ 2020 in Dubai n The General Civil Aviation Authority

(GCAA) of UAE has announced that the second edition of Global Investment in Aviation Summit (GIAS) 2020, themed ‘Enabling Global Aviation Growth through Fund Raising and Key Partnerships’, will be held in Dubai from January 27 to 29.

Over 200 investors and 1,200 delegates, besides selected government officials, aviation organisations, finance and insurance firms, aviation asset owners, aircraft operators and logistic service providers and legal consultants are expected to turn up at the event.

“The national agenda for 2021 aims for UAE to be the world first in the quality of the air transport infrastructure. Although we are facing some challenges, such as determining the airspace and congestion in the UAE, we achieved great strides in

18 SEPTEMBER 2019

the aviation industry,” commented Saif Mohammed Al Suwaidi, Director General, GCAA. Crucial projects and investment opportunities in the international civil aviation sector are expected to be unveiled at the event.

The summit will also reveal the best practices of the first aviation business incubator Intelak, which provides training programmes and workshops for trainees who want to learn more about and make a career in the aviation sector.

The first 2019 edition of GIAS has witnessed a participation of over 850 international delegates and 120 investors from 60 countries around the world, including United States, United Kingdom, France, Germany, India, Saudi Arabia and Egypt.

Saif Mohammed Al Suwaidi

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Robotics and automation set to transform regional

Materials Handling Industry Materials Handling, at its very core is the organised and controlled movement of goods and inventory from one place to another. In essence, it is vital to the seamless and unhindered functioning of any business— manufacturing, storage, transportation and is key to the costs and profitability of the operations.

M

aterials Handling Middle East, the region’s dedicated trade show for warehousing, intralogistics and supply chain solutions, has evolved into a futuristic showcase of robotics and automation for its 2019 edition, as the 4th Industrial Revolution, or Industry 4.0, continues to reshape the region’s industrial landscape.

Running 3-5 September at Dubai World Trade Centre (DWTC), the 10th edition of the biennial event, which will welcome more than 120 exhibitors to come from 20 countries, will spotlight the latest automated solutions designed to improve operational and cost efficiency, increase production capacity, accelerate customer service and boost competitiveness within a rapidly-evolving logistics sector.

UAE ranks high in LPI With the World Bank’s 2018 Logistics Performance Index (LPI) ranking the UAE 13th out of 160 countries, outstripping Canada, France, Finland, Denmark and Australia, the 2019 edition of Materials Handling Middle East is must-attend event for regional heavyweights and international players eager to increase their foothold in a super-competitive global marketplace.

To tap into the soaring demand for automation in the Middle East, Ancra 20 SEPTEMBER 2019

Systems, a Netherlands-based specialist in automatic truck loading and unloading systems, is making its Materials Handling Middle East debut with an Automated Truck / Container Loading and Unloading Solution (ATLS) designed for a wide range of industries.

Automation is now a key driver for the full spectrum of industries, including ecommerce. The UAE’s e-commerce sector alone is currently worth US$17.8 billion, representing 45.6 per cent of the total value of the Middle East’s e-commerce market, according to a Fitch Solutions Report.

Digital goes mainstream “Digital transformation in warehousing intralogistics and the supply chain is in overdrive and we’ve sought to create the best platform for the early adopters and major disruptors to display services and solutions that will undoubtedly improve productivity, efficiency and more across warehousing, intralogistics and supply chain,” said Simon Mellor, CEO of Messe Frankfurt Middle East.

“Visitors to this year’s event will get a complete overview of logistics today and tomorrow, including the sector’s role as a gateway to the future of commerce – both offline and online.”

Running alongside Materials Handling

China to keep high profile at Materials Handling Middle East 2019

Chinese expertise across the logistics eco-chain will be forefront at this year’s Materials Handling Middle East, the region’s dedicated warehousing, intralogistics and supply chain solutions show, which runs from September 3-5 and comes in the wake of game-changing UAEChina trade accords.

China, already the UAE’s second largest trading partner with about 6,000 Chinese companies operating in the Emirates, will have a dedicated pavilion featuring around 30 of the country’s biggest names at the Dubai World Trade Centre (DWTC).

Chinese involvement in Materials Handling Middle East follows the UAE and China recently signing US$ 3.4bn worth of new Belt and Road deals, which are expected to boost an existing US$ 53bn worth of bilateral trade to US$ 70bn next year.

The deals include Chinese plans for a 5.57mn sqm storage and re-export hub in Jebel Ali to transship its goods to the world and the UAE plans for a US$ 1bn ‘Vegetable Basket’ project that will import, process, pack and export agricultural, marine and animal products through the new Silk Road under a UAEChina century of prosperity roadmap.

Overview: Materials Handling Middle East 2019

Middle East 2019 will be a series of educational sessions and seminars along with presentations around key strategies, policies and trends in supply chain management and logistics.

Elsewhere, the Forklift Operator of the Year competition will return, featuring UAE’s most skilled Forklift drivers who will be judged on their ability to safely and efficiently manoeuvre electric forklift machinery in tight and narrow spaces.

Swisslog: Top player Swisslog Middle East, a global leader in robotic, data-driven and flexible automated solutions, will introduce highly-efficient robotised storage and order processing solutions for small parts and pallets that integrate into existing buildings.

“Several businesses in the UAE and

The UAE’s e-commerce sector is currently worth US$17.8 billion — Fitch Solutions Report

globally have benefitted immensely from logistics automation and, particularly in the Middle East, we are seeing increasing demand for automated logistics solutions in industries ranging from e-commerce and retail, to F&B and pharma,” said Alain Kaddoum, General Manager, Swisslog Middle East.

Swisslog will also use Materials Handling Middle East as a platform to introduce CarryPick, a flexible and modular AGV-

based storage and order picking system designed for multi-channel intralogistics that can fulfill 20 orders simultaneously.

E-commerce calls shots Automation is now a key driver for the full spectrum of industries, including E-commerce. The UAE’s e-commerce sector alone is currently worth US$ 17.8bn, representing 45.6% of the total value of the Middle East’s E-commerce market, according to a recent Fitch Solutions report.

According to a recently published report by global management consultancy firm Bain & Company, the E-commerce market in the Middle East & North Africa is expected to reach $28.5 billion by 2022. The UAE itself has the highest penetration in the region with 4.2%, followed by KSA at 3.8% and Egypt at 2.5%.

SEPTEMBER 2019 21

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T

he ACME Group, the long standing materials handling specialists, is a full spectrum system integrator with over 44 years of experience in the Middle East. ACME’s expertise in warehouse and industrial automation lies in solution development, installation, system integration and life cycle support.

With an experienced in-house team based in Dubai, ACME is able to react

Upping the ante: ACME poised for the big lift The eminent material handling professionals offer comprehensive turnkey solutions

to customer needs quickly and develop solutions that are tailored to the needs of its customers in the region.

In a recent interview with Global Supply Chain, Navin Narayan, Founder-CEO, ACME, spoke at length on a variety of subjects affecting the materials handling industry, the opportunities and challenges, expansion plans and his vision for the future.

Global Supply Chain (GSC): Give us a sense of the size and scale of ACME’s current association with the logistics & supply chain industry in the Middle East?

Navin Narayan (NN): ACME is one of the oldest storage and material handling companies in Dubai. Over the years we have transformed ourselves from a purely industrial components and racking systems supplier into a technology driven intralogistics solution provider catering to customers in MENA and Indian Subcontinent.

To reaffirm our commitment to the region, ACME has opened a full-fledged manufacturing facility in Jebel Ali that is capable of manufacturing conveyor systems as well as AS/RS stacker cranes and miniload systems which we design in-house.

Presently, we have over 80 team members located in our various offices in the region catering to industries such as FMCG, retail, E-commerce, pharmaceuticals as well as food and beverage.

GSC: How significant is Materials Handling 2019 for ACME? What potential do you foresee for the future?

NN: Material Handling 2019 gives ACME the opportunity to connect with existing customers and partners as well as to meet with potential customers and partners that are looking to work with regional intralogistics solution providers such as ACME. It allows us to showcase the range of solutions that we provide as well as the new ‘Made by ACME’ range of products.

GSC: How is ACME currently faring and how does that compare with 2018?

What is your outlook for the remainder of 2019?

The market on the whole has been impacted by the issues affecting the region.

However, we have been blessed and have been successful in tiding over this and

22 SEPTEMBER 2019

ACME

keeping our order-books full.

2018 has been a record year for ACME and 2019 has been good so far too. Our core customers have used this period to reassess their supply chain processes and have decided to go ahead and invest in new technologies to bring in efficiencies. By working closely with them, we have been able to continue on the growth trajectory.

GSC: What are your short and or longterm expansion plans for the region?

NN: At ACME we have begun to work on projects in Turkey, wider MENA as well as places as far away as Bangladesh.

We are also proud to announce that starting 2019, ACME is an authorized distributor for Kardex Remstar’s range of intralogistics solutions for UAE and Saudi Arabia.

We are also keen to ramp up our ‘Made

by ACME’ range of products that we manufacture at our Jebel Ali facility.

GSC: What are the opportunities in store and challenges confronting ACME in the region going forward?

NN: Customers are now looking to stem inefficiencies in their supply chain and are now focused on improving their intralogistics processes and looking to incorporate best practices. This is where our role comes in to share our expertise garnered over four decades in the region.

Further, labour shortages coupled with the enhanced push for industrialization and the movement away from a purely oildriven economy has greatly opened up new opportunities for us.

We are very confident that the intralogistics automation industry will move forward in this region.

GSC: How is the surge of E-commerce impacting your business?

NN: E-commerce has definitely given a beating to the brick and mortar business in the region. Ecommerce fulfillment is a totally different ball game in comparison to the traditional sales channels. Many big players have begun the transformations needed to cater to these demands.

With Kardex solutions in our range, we are now in a position to support SME’s who need to revamp their supply chain processes to cater to the demands of the omni channel market.

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

NN: Previously we used to see a fear in customers towards mechanization of the warehouse. This fear of machines is slowly whithering away. MENA customers have been slow in adopting the latest warehouse automation solutions that are popular in the rest of the world.

However, this has changed; over the last 2-3 years we have been receiving enquiries from many customers on how to move from traditional overstaffed manual warehouses to automated efficient intralogsitics systems.

In order to remove the fear of automation we now also offer complimentary warm-up support to many of our customers.

“Customers are now looking to stem inefficiencies in their supply chain and are now focused on improving their intralogistics processes and looking to incorporate best practices.

This is where our role comes in to share our expertise garnered over four decades in the region.”

GSC: ACME is a privately held business. Do you plan to go public and separately do you have mergers or acquisitions in mind?

NN: We have been successful in growing our business organically over the last few decades. We are on the lookout for companies in developed markets that we could acquire that would help us leapfrog technologically and expand our range of solutions in-house built solutions.

Our focus at the moment is to continue to grow organically without the need to tap the financial markets for additional capital.

GSC: What have been some of your recent major accomplishments in the region? Please elaborate?

NN: ACME just completed a high-speed high-density ASRS installation in Jeddah, Saudi for one of the largest dairy companies in the region. The facility has a capacity of over 40,000 pallet locations and is built on a very small foot print. With automated trailer unloading, shuttle storage and a throughput of over 160 pallets per hour, it is definitely a unique facility in Saudi Arabia.

We have also just completed an automated distribution warehouse in Kuwait for one of the largest fashion retailers in the region.

Another project closer to home is a high speed sorter system for one of the largest hypermarket chains in the region. We expect this project to go live mid 2020.

GSC: ACME moved its head office to the plush Business Bay enclave. What implications does this relocation move have for the company?

NN: Our new corporate head office in Business Bay is ideally located for customers and partners who would like to visit us.

Easy public transport as well as traffic free access is definitely a plus point. This office manages administration as well as presales.

In addition to Business Bay, we have a new 45,000 sq foot facility in Jebel Ali Free Zone that is central to our ‘Made by ACME’ strategy. At this facility we are capable of manufacturing conveyor systems, stacker cranes and other intralogistics systems.

We are proud to say that currently we are the only organization that has the technical expertise to design and manufacture these systems in the region. This greatly improves project implementation timelines in addition to giving customers peace of mind with regard to local support for the systems that run the backbone of their business.

GSC: As CEO and Group supremo, what is your long-term vision for ACME? Where do you hope to take the company hereon?

NN: Over the last years, we have built a team of dedicated and highly experienced intralogistics professionals that can design, build, operate and maintain highly complex automation solutions that cater to a wide variety of industrial and retail businesses.

We are now in the position to not only deliver an automated warehouse solution, but also to manage and run the system for our customers.

One of our greatest strengths is the talented and dedicated team that we have onboard. The team along with our new manufacturing facility in Jebel Ali should definitely empower ACME to achieve our long term vision and that vision is to be the market leader in innovative automated intralogistics solutions in MENA and the Indian subcontinent.

SEPTEMBER 2019 23

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Juma Al Majid to spotlight Kardex Shuttle at MHME 2019

The immensely popular Kardex Shuttle Vertical Lift System has been designed to meet a broad range of storage and retrieval applications in manufacturing, distribution, retail and warehouse operations.

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ardex currently has more than 2,500 automated storage installations in the UAE with full-fledged branches in Dubai, Abu Dhabi, RAK, Fujairah, Al Ain and Sharjah.

The combination of density, flexibility, efficient storage strategies, ergonomics and security makes the Shuttle XP from Kardex Remstar a unique storage solution.

Towering technology The modular Shuttle XP Vertical Lift is an enclosed system on which trays are stored vertically on the front and rear of the unit.

There is an extractor device located in the centre, which automatically delivers trays with the stored items to the access opening at the push of a button or the scan of a barcode.

The device is modular in its construction with the ability to change its height and 24 SEPTEMBER 2019

number of access openings pre- and postconstruction. Depending on the ceiling height, at least 85% of a conventional storage system’s occupied floor space can be recovered. The Shuttle XP automatically scans every tray with the use of Optiflex technology, finding the ideal storage location within the system in increments of 25mm. Items are stored in the least possible amount of space.

The versatile Kardex Remstar Shuttle XP offers even greater flexibility thanks to various options available pre-or postinstallation. It can be resized, moved and altered to meet changing business, facility and application requirements. The system can be installed in the direct vicinity of a production line to increase productivity and reduce floor space requirements. It can connect several floors or be installed outside the building with pass-through access.

Kardex Remstar provides customers

with dramatically increased levels of employee productivity, reduced floor space requirements and increased inventory visibility and management.

Wide-ranging applications Besides the standard storage solutions, Kardex has the capability to provide customized storage solutions to any industry or office including Financial Institutions, Hospitality, Human Resource, Legal, Health care, Manufacturing, Logistics & Warehouses, Automobile, distribution, retail and other industry segments.

Juma Al Majid has the technical expertise to offer storage solutions that will increase staff productivity by 150% along with 70% saving in floor space. The combination of optimal storage density, flexibility, efficient storage strategies, ergonomics and security makes Juma Al Majid along with Kardex

KARDEX SHUTTLE

Remstar, a unique, effective storage and retrieval solution provider in UAE. Global Supply Chain recently interviewed KP Rakesh, General Manager, Juma Al Majid Est., for the low-down on the company’s operations, the current scenario, its participation in Materials Handling ME 2019 and a range of other crucial issues.

Global Supply Chain (GSC): Tell us about brand Kardex Remstar and the size and scale of your current association with the logistics & supply chain industry in the Middle East?

KP Rakesh (KPR): The long-sustained and growing relationship between UAE’s Juma Al Majid Est. and Germany’s Kardex Group can be traced way back to 1980. Over the past almost four decades, the Kardex Group, one of the world’s leading suppliers of intra-logistics, automated storage and retrieval solutions, has emerged as the undisputed market leader with an overwhelming 80% of the market share in the UAE. GSC: How significant is Materials Handling Middle East 2019 for Juma Al Majid? What potential do you foresee for the future?

KPR: Materials Handling Middle East 2019 is the best opportunity to showcase the latest solutions from Kardex Remstar. The previous years’ events have been extremely beneficial for us and we expect the same this year too.

GSC: How is Kardex currently faring in the UAE and how does that compare with 2018? What is your outlook for the remainder of 2019?

KPR: We have been growing year-on-year and we bagged some very important major deals in 2019 for the Kardex Vertical Storage solution.

GSC: What are your short and or longterm expansion plans for the region?

KPR: We are focused solely on UAE market.

Since every organisation is looking to cut costs, it is imperative that there will be a surge in requirement for Storage Solutions that will save space and hence rental as well as increase productivity of staff by after storage and retrieval. We have been strengthening our sales and support staff to take care of the increasing demand.

GSC: What are the opportunities in store and challenges confronting this Juma Al Majid Division in the region going forward?

KPR: There are huge opportunities because many organisations are yet to optimize their storage. Creating awareness about the solutions available and converting them to business is the way forward.

“Over the past almost four decades, the Kardex Group, one of the world’s leading suppliers of intra-logistics, automated storage and retrieval solutions, has emerged as the undisputed market leader with an overwhelming 80% of the market share in the UAE.”

GSC: How is the surge of E-commerce impacting your business?

KPR: E-Commerce companies are always on the lookout to reduce delivery time.

This calls for faster storage and retrieval of items. Therefore, the surge of e-commerce is adding to the increasing opportunities for Kardex Storage Solutions.

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

KPR: Robotics in storage will be the major trend in the years to come.

GSC: What have been some of your recent major accomplishments in the region? Please elaborate?

KPR: Our major accomplishments have been the implementation of Kardex Vertical Storage solutions in the transport sector, in both the land and air segments.

GSC: What are your goals and longterm vision for Juma Al Majid Est.?

KPR: Our long term goal is to consolidate our position as the leading Storage Solution provider in UAE.

SEPTEMBER 2019 25

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Integrating Storage and Materials Handling Systems SPAN, founded by Walid Daniel in 1989, is a leading integrator of storage and material handling systems serving the logistics industry. By his own admission, SPAN works closely with its clients to ensure that they are up to the ever changing challenges their industries are facing.

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ecent years have witnessed a strong focus being placed on E-commerce fulfillment centres and automation projects across the region. These projects have been executed in different industrial verticals including but not limited to retail, 3PL, FMCG, healthcare, manufacturing, automotive, hospitality, as well as military and Government.

SPAN has a multilingual team of over 300 members, a regional market presence, including the UAE, Lebanon, KSA and Qatar, and projects executed in over 20 countries around the world.

In Daniel’s estimation, by maintaining expertise in supply chain trends, SPAN continues to introduce innovative solutions that not only streamline warehouse

26 SEPTEMBER 2019

operations, but also brings real benefits to its customers’ bottom line.

“SPAN strives to build long term relationships by providing our customers with continuous proactive and reactive support, not only through the life of the project, but post implementation as well,” he continues.

Global Supply Chain (GSC) conducted an exclusive interview with Walid Daniel, Founder and Managing Director, SPAN. GSC: How significant is Materials Handling 2019 for SPAN? Who are your target audience?

Walid Daniel (WD): The Material Handling exhibition is a specialised event for our industry, targeting a particular audience.

It has always been a great platform to promote our solutions and services in the region and an opportunity to maintain Span’s Brand awareness.

Our objective is to showcase and demonstrate to the visitors our capabilities in warehouse automation along with the design and implementation of all the solutions required for advanced operations such as ecommerce fulfillment facilities.

Our target audience includes any operation that handles practically any product. These include clients looking for warehousing, intralogistics, and supply chain solutions. From basic racking and shelving, forklifts and lifting equipment to fully automated state of the art fulfillment centres.

SPAN

GSC: What are your short and or longterm expansion plans for the region?

WD: Over the years Span grew by adding new product lines such as storage solutions, office solutions, WMS, demand planning, consultancy practice, MHE and automation.

In addition to our head office in Dubai, we also opened four other offices in Saudi Arabia, Qatar, Abu Dhabi and Beirut. Span’s next expansion will be in West and North Africa.

GSC: How is the surge of Technology and E-commerce impacting your business?

WD: As technology and customer’s order behavior continue to increase pressure on the warehouse operation, it is forcing our industry to keep pace by introducing robotics, automation, and efficient picking and fulfillment solutions.

Due to the changing nature of the market and the new requirements in E-commerce and the ever increasing customer demands,

automation, robotics and IT technology are becoming increasingly vital. Faster and streamlined operations are becoming critical to achieve higher throughput in the warehouse.

Businesses are no longer receiving pallets and shipping pallets or cases. They now receive rainbow pallets and ship single units, which in turn impose the need for new innovative solutions to cope with

“Our target audience includes any operation that handles practically any product. These include clients looking for warehousing, intralogistics, and supply chain solutions. From basic racking and shelving, forklifts and lifting equipment to fully automated state of the art fulfillment centres.”

Walid Daniel Founder and Managing Director, SPAN Group Walid Daniel holds a bachelor of Mechanical Engineering from the American University of Beirut (AUB) and an MBA from INSEAD. Under his leadership, SPAN has commissioned over 3,000 projects in 20 territories, several of which featuring state of the art mechanised and automated systems.

With a market presence in 4 countries across the Middle East, Walid brings to the panel his industry expertise as well as his intimate knowledge of the supply chain and intra-logistics domain.

a much larger throughput and multiple peaks per day. This is forcing companies to look at ways of doing more with less and hence the increased demand of technology, automation and robotic solutions.

GSC: What futuristic trends and advent of technologies do you foresee in intralogistics automation for the region?

How are you adapting to the trends?

WD: The challenge remains to increase the throughput while maintaining perfect orders and ensuring on time deliveries.

Automation is one of the biggest trends in warehousing and logistics today, and it’s becoming more accessible.

Order picking automation within a warehouse using efficient picking solutions, collaborative robots are increasing picking rates and helping distribution centres cope with the increased pressure.

In addition to the above, Span has recently launched its state of the art e-commerce fulfilment engine and SPAN Warehouse Execution System (WES) to fulfil online orders in an automated or semiautomated fulfillment facility. As consumer behavior changes and the number of orders increase, fulfillment solutions need to change as well.

SPAN WES solution seamlessly integrates online orders with the client’s WMS/ERP software that enables it to drive automated and semi-automated equipment for higher efficiency and throughput.

GSC: What have been some of your recent major projects/ accomplishments in the region? Please elaborate?

WD: Span team has executed over a hundred projects in the last 12 months in the region and four of these can be classified as Mega projects. These four projects are distributed across different countries, consisted of over 120,000 square meters including over 2,500 linear meters of mobile shelving and an excess of 190,000 pallet locations.

The group has also executed several strategic and complex projects across the region and Africa that included different levels of automation ranging from advanced IT and smart picking solutions to fully automated facilities. We have also managed to support regionally several companies in their ‘leap’ into the E-commerce and automation world.

SEPTEMBER 2019 27

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Jewels in the Crown Repertoire

One of the world’s largest material; handling companies is on the upswing in the UAE Following its foray into the material handling equipment industry in 1960, Crown has rightly and provably earned its rock solid reputation as a leading innovator in world-class forklift and material handling equipment.

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ince its inception in 1945, New Bremen, Ohio headquartered Crown has grown exponentially from a miniscule operation to one of the top five largest and best known lift truck manufacturers in the world.

Crown lift trucks are prized for their safety, reliability and productivity by users throughout the globe. Crown products continue to receive recognition for design excellence, and have bagged more than 80 prominent design awards.

General Navigation and Commerce Company (Genavco) established in 1967 is an associate company of the reputed Juma Al Majid conglomerate, is the authorized dealer for Crown Equipment products in the UAE. Genavco has been instrumental in expanding the Crown footprint in the UAE. The Genavco-Crown success story

28 SEPTEMBER 2019

Parts that take Parts that take you further Parts that take you further you further Keeping your truck on the road, that’s what it’s all about. And Genuine Volvo Parts are vital to maximise your uptime and achieve the most profitable ownership possible. They are designed to fit and function perfectly with your truck.

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CROWN EQUIPMENT

continues on the fast track energized by the outstanding performance and popularity of the manufacturer’s wide range of equipment to cater to every need and sector for its growing clientele.

Crown’s Turret Stock Picker (TSP) machines constitute the core ‘work horse’ of its range. Other products include the Pedestrian Hand Pallet Trucks; the Pedestrian Powered Pallet Trucks, Pedestrian Stackers, Reach Trucks and Order Pickers, all renowned for their robust

functional product design and long-term dependability.

Life Time Guarantee on WT DT ET Side Restraints Engineered for extreme durability, Crown’s folding side restraints are the toughest available, the company assures. Crown understands tough applications from dock work to transporting or stock keeping.

When impacts occur to forklift trucks equipped with folding platforms, the folding side restraints are often damaged, sometimes beyond repair. Bent, broken, malfunctioning or missing side restraints are all too common in the workplace.

Crown however is confident in the strength and durability of Side Restraints and has guaranteed them for the life of the Truck.

All New ESR 1000 Reach Truck Series It’s a proven fact that operators who are comfortable and confident are more productive than those who are not.

That’s the motivation behind Crown’s commitment to forklift design and ergonomics.

The all new ESR 1000 Series Reach trucks featuring the GENA operating System provides a data–rich user experience system that is more human personalized and interactive. Benefits extend from operators to service engineers to Management.

The new operating system ensures up to 21% more productivity, 100% compliance with daily checklist via Infolink, up to 40% fleet downsizing with Infolink fleet management system and up to 11% energy savings with regenerative braking and lowering. This machine also offers an optional Xpress Lower technology that lets double the lowering speed resulting in substantial savings of energy and money.

“Crown lift trucks are prized for their safety, reliability and productivity by users throughout the globe.

Crown products continue to receive recognition for design excellence, and have bagged more than 80 prominent design awards.”

30 SEPTEMBER 2019

Crown Equipment Unveils Lithium-Ion Energy Storage System across its Range Crown Equipment Corporation introduced the Lithium-Ion Energy Storage System (ESS) for customers utilizing alternative energy-powered forklifts to achieve lower operational costs and enhance productivity and efficiency. Lithium ion ready option is available now across the Crown Range.

Lithium-ion batteries can be opportunity charged during operator breaks without adversely affecting battery life, which can contribute to longer run times and remove the need for battery changing. They do not emit gas during charging, which means they do not require special battery rooms. Lithium-ion batteries are also maintenance free, which eliminates the need for battery watering.

Riyadh airport logistics centre

Saudi Arabia’s first integrated logistics enclave unveiled at Riyadh International Airport

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landmark, well-attended introductory forum was recently held at the Fairmont Hotel in the Saudi Arabian capital Riyadh under the patronage of the President of GACA, HE Abdulhadi Al-Mansouri.

Present on this important occasion were senior Government and GACA officials along with high-ranking officers from local, regional and international foreign companies and potential investors.

Creating opportunities for the logistics and supply chain sectors

HE The President of the Saudi Arabian General Authority of Civil Aviation—GACA, the country’s Airports’ regulator, recently presented the Integrated Logistics Bonded Zone at the King Khaled International Airport in the Kingdom’s capital

32 SEPTEMBER 2019

The logistics investments, supply chain, storage and distribution opportunities in Saudi Arabia were reviewed to demonstrate the scope and potential of this promising sector.

The creation of the Integrated Logistics Bonded Zone (ILBZ) at Riyadh’s sprawling and busy King Khalid International Airport enables and empowers the partnership of private investors and related logistics services providers with the government sector, This move creates an appealing modern work environment by facilitating all the procedures, creating the appropriate infrastructure and regulatory and oversight mechanisms.

In his keynote address HE Al-Mansouri assured the efforts of the Logistics Hub Executive Committee and taskforce to overcome all the obstacles in the logistics sector, to attain the ambitious Saudi Vision 2030 initiated by HM Mohammed Bin Salman Al Saud, Crown Prince, Kingdom of Saudi Arabia.

HE Al-Mansouri added that the Saudi leadership totally supports all efforts to transform the Kingdom into a significant logistics hub connecting three continents— Asia, Europe and Africa and a bridge between the corresponding hinterlands.

“At this current stage, we are laying the cornerstone in the process of stimulating and expanding the logistics sector in the Kingdom of Saudi Arabia. We are also issuing appropriate guidelines and regulations for this vital industry sector.”

Good potential Furthermore, he called on all interested parties and stakeholders to optimize and harness the offerings and potential of the burgeoning Saudi logistics network. The Kingdom boasts the massive air and surface cargo traffic as the largest country and the biggest economy in the region and the most populated country in the GCC. Saudi Arabia has developed the logistic sector with SR 400bn (US$ 107bn) capital investments by raising the capacity of the land, air and maritime cargo and streamlining and automating all the export / import procedures to empower this sector in the local economy thereby raising the regional competitiveness.

Currently, the volume of the logistics market in Saudi Arabia is US$ 18bn, which

constitutes over half—55% of the total GCC logistics services’ market. By 2020, the value of this sector is expected to be US$ 25bn, making it one of the fastest-growing markets worldwide.

Committed to expansion GACA is in the process of launching several key economic projects to revive this sector as exemplified by the Integrated Logistics Bonded Zone (ILBZ) at King Khalid International Airport in Riyadh, one of which is the first logistic area in Saudi Arabia. There are plans for more areas to be developed in the near future.

“At this current stage, we are laying the cornerstone in the process of stimulating and expanding the logistics sector in

the Kingdom of Saudi Arabia. We are also issuing appropriate guidelines and regulations for this vital industry sector.

I wish to emphasize the efforts of the Logistics Committee supported by all government sectors and in all aspects to make these projects a global exemplary model,” HE Al-Mansouri concluded.

It is worth noting that the enabling of the Kingdom of Saudi Arabia as a major regional logistics hub is one of the initiatives of the ‘National Industrial Development and Logistics Programme’ launched earlier this year, and it is one of the largest projects and an important component of the lofty Saudi Vision 2030, that aims to transform the Kingdom into a leading industrial power and an international logistics nucleus.

SEPTEMBER 2019 33

LogiPoint-Aramco Chemicals Interface

LogiPoint enters partnership with Aramco chemicals exports In a major milestone accomplishment, LogiPoint, a top Saudi Logistics company, has concluded a key agreement with Aramco Chemicals Company (ACC) for the export of petrochemicals derivates and byproducts.

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ogiPoint, a subsidiary of Saudi Industrial Services Company–SISCO and the leading logistics business and the largest bonded and re-export zone in the Kingdom of Saudi Arabia, recently concluded a key agreement with Aramco Chemicals Company (ACC).

LogiPoint is a Saudi Arabian joint stock company listed on Kingdom’s only Tadawul Stock Exchange With extensive support from stakeholders Saudi Customs and Jeddah Islamic Port, the country’s principal and busiest port, to re-engineer the export processes, this agreement provides ACC with a strategic export logistics hub.

Furthermore, this helps eliminate the need to use an intermediary overseas hub for storage and onward shipping of their cargoes therefore enhancing its ability to provide cost-effective solutions. The cargo is then dispatched directly to the target market, ensuring efficient services and reduction of the export processing time from one week to one day thereby increasing the demand and appeal for

34 SEPTEMBER 2019

Saudi products.

This agreement is aligned with the Saudi Vision 2030 and the National Industrial Development and Logistics Programme (NDLIP) under the supervision of the Saudi Logistics Hub, which seeks to develop the Kingdom’s economic growth beyond dependence on the oil industry.

It promises to open new doors and economic opportunities within the Kingdom, providing Saudi-based companies with expanded access across the GCC and wider Middle East region, in addition, international exposure and expanded opportunities to do business globally.

Saudi Customs on board Saudi Customs has affirmed its commitment toward continually developing its procedures and ensuring they are in line with the highest global standards on both the technological and operational fronts.

It is also dedicated to maintaining cooperation with all the relevant entities to

ensure the advantage of harnessing Saudi Arabia’s strategic location in connecting the world’s continents.

The first and largest Bonded and Re-Export Zone (BRZ), spread over 1mn sqm. in Jeddah, is an example of the type of world-class, customer-centric integrated logistics service area that LogiPoint has pioneered in the Kingdom giving the advantage to its clients to reliably save up to eight days shipping via Jeddah and to re-export without needing to pay customs.

LogiPoint has made specific and special efforts to introduce international concepts towards logistics efficiency to attract international investors.

LogiPoint’s premium location and the world class facility located in Jeddah Islamic Port has made it a major logistics hub in the region providing services such as lead-logistics, trucking, warehousing, port services, turn-key supply chain integration from the port terminal to the distribution center, specialised handling, labelling and co-packaging.

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TRUKKIN

Revving up, gaining traction Trukkin’s seamless, innovative, powerful tech-centric products enable faster delivery, a consistent and reliable system, and a transparent platform for both truckers and shippers. Now Janardan Dalmia, Founder-CEO, is preparing for the long haul and steering the company on the fast track to progress.

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TRUKKIN

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Janardan Dalmia

Founder-CEO-Director, Trukkin An investment banker-turnedtechnology evangelist, Janardan Dalmia is on a mission to transform the logistics industry.

As CEO of Trukkin, Dalmia is tasked with the responsibility of leading a young, energetic and passionate team on to the next revolution in technology and logistics.

Prior to Trukkin, Dalmia was honing his corporate finance experience working with and advising on some of the very high profile M&A transactions over a decade at Barclays and Bank of America in Dubai and New York.

With multiple skill sets and experience Dalmia aims to make Trukkin the regional leader in the commercial transportation industry.

ince its founding in 2017, Trukkin has and continues to focus on using technology to reinvent and rebuild the logistics ecosystem. The Uber for Trucks is redefining and revamping the bulk land transportation logistics landscape.

The cloud based B2B platform unites shippers and truckers in the Middle Eastern region and offers users to search trucks and loads hire or get budget quotations.

Trukkin endeavours to develop and perfect a non-asset-based road network that simplifies the entire transportation process by extending flexibility, maximising shippers’ ability to find a transporter, accelerating delivery, and reducing direct and indirect costs.

Trukkin’s Janardan Dalmia has a clear vision for the techno-logistics company he founded over a decade ago. The CEODirector is on track and in high gear to substantially grow the business.

“Trukkin is building up its marketplace to connect thousands of mostly independent truckers. The long-haul land transport market is highly fragmented and disorganised, and our aim is to institutionalise and professionalise this business,” he explains.

Global Supply Chain conducted an exclusive wide-ranging interview with Janardan Dalmia, where he spoke expansively about the company, its evolution, the opportunities, challenges, new developments and his prognosis for the future.

Global Supply Chain (GSC): Briefly chronicle your evolution over the past two years since your inception?

Janardan Dalmia (JD): We launched in mid2017 and our journey since then, though brief, has been phenomenal. We launched simultaneously in Saudi Arabia and in the UAE and have now been serving close to ten countries in the Middle East.

We have served over 100 clients in all kind of industries and sectors such as manufacturing, FMCG, distribution, project logistics, containers, machineries amongst various others.

SEPTEMBER 2019 37

TRUKKIN

My vision for Trukkin is to create into a one stop logistics platform for clients and transporters.

We want to be at the forefront of technological evolution in the logistics sector.

GSC: Why did you choose to set up Trukkin?

JD: We observed a gap in the logistics market. The land transport market is highly fragmented and disorganised and there has been rapid digitisation of this sector. We believe there is a significant opportunity to institutionalise and professionalise this sector and with the help of technology make it much more efficient. Hence we setup Trukkin to address these areas.

GSC: What are the opportunities available and challenges confronting Trukkin in the short & / or long-term futures?

JD: There are several opportunities for us.

We are building a pan-Middle Eastern network of transporters and clients which will help create an unparalleled network of

logistics.

There is always a challenge when you bring something new in the market and it takes some time for the uptake of the product. However, once they start experiencing it and realise the overall benefit in the near and long-term, they become more receptive to the innovation.

So like any other industry, we have our own challenges and opportunities but opportunities are far greater for us to ignore in the sector.

GSC: How did Trukkin perform in fiscal 2018 and what is your outlook for 2019?

JD: We have been quadrupling our business since we have launched and we expect to do the same in 2019. But my focus is not so much just on the numbers at the moment;

Saudi investors raise US$ 3.5mn for Trukkin As “on demand” services expand into more industries and market places, Trukkin is leading the way in digital logistics solutions for long-haul trucking. The company works to innovate and simplify logistics and land transportation.

Trukkin has raised over US$ 3.5 million in the recent funding round, which included marquee investors from the all Saudi Arabian Al-Namlah, Al-Madi Family Group, and the Abanumay Family Groups. Batic Investments and Logistics, a publicly listed company on the Saudi Arabian Exchange Tadawul, remains as one of the key investors in the start-up.

“Trukkin’s vision, operational efficiency, capital utilisation, and sound business model drove us to partner with them in the region over other competitors. Trukkin knows the pulse on the ground,” remarked Mohamed Al-Namlah, Managing Director of Amnest Group.

By adding the new capital to the company, Trukkin will be able to significantly scale their services across the GCC region. The company has shipped to over 200 locations in the Middle East. In Saudi Arabia alone, Trukkin has completed over 10,000 long-haul, business-to-business truck movements. That is a significant accomplishment given that the country represents nearly 50% of the overall GCC market opportunity.

Investor Al-Madi explained that they had been following

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the sector for months and were impressed with what Trukkin has been able to achieve. “Their team is very focused on the ground and has shown their operational prowess. We believe we can further add significant capabilities to Trukkin with our investment,” Al-Madi said.

Founder and Chief Executive Officer Janardan Dalmia explained how their model works. “Trukkin operates on an ‘asset-light’ model, meaning it doesn’t own the trucks. Our focus on overall service lets us improve both the customer and transporter experience and also increase asset utilisation and reduce inefficiencies,” he noted.

Trukkin serves a wide range of customers. Through its app and online marketplace, the company brings together shippers who need more transparency and easier access to trucks with truckers who need better access to demand and higher fleet utilisation. Their client base ranges from businesses who order close to 100 trucks a day to ones with smaller needs who order as few as three trucks a month.

Trukkin is fully aligned with the Saudi Vision 2030 plan to diversify the country’s infrastructure, with a specific focus on the National Industrial Development and Logistics Program (NIDLP). The NIDLP is working to make Saudi Arabia a “leading industrial powerhouse and a global logistics hub.”

TRUKKIN

we want to focus on creating a value added product for our shippers and transporters and the business will easily follow.

GSC: Recently three Saudi Arabian private investors contributed US$ 3.5mn in a new funding round. Why did they choose to invest?

JD: When you look at the logistics market in the Middle East, it is close to US$ 25billion in value. The government’s focus and several initiatives in the sector, the potential opportunity for creating champions are all super exciting for any investor.

Our investors did their careful duediligence and they backed us for our strong operations and understanding of the market. We showed them our ability to operate in multi country environment from the very beginning and we are glad to have our backers on-board with us in our journey.

GSC: What will the investment be used for?

JD: We will continue to invest in R&D and technology upgrade, strengthening and scaling further of our business.

GSC: What are your expansion plans for the wider geographical region?

Are you looking at moving into new geographies?

JD: We are already serving close to ten countries in the Middle East either directly or indirectly when our trucks are traveling to all these countries. So it is natural for us to move into these countries over time.

GSC: Are you planning to expand your products and services portfolio?

JD: We want to be one-stop destination for anyone’s logistics needs. Keeping this in mind, we are always adding new products and services to serve our clients.

GSC: Are you planning a new funding round in the conceivable future?

JD: We will go for the new funding round over the next year. We are growing and expanding fast. We believe in sustainable growth and we are very ambitious with our growth plans but yet cautious.

GSC: Is Trukkin considering any mergers and / or acquisitions going forward?

JD: We haven’t explored that part yet since we are still a very young company but we will explore the opportunities when it presents itself.

GSC: What is your vision for Trukkin for the short and long terms?

JD: My vision for Trukkin is to create into a one stop logistics platform for clients and transporters. We want to be that trusted name with superior levels of service and be at the forefront of technological evolution in the logistics sector.

GSC: Where do you (Janardan Dalmia) go from here? Are there any new endeavours in the offing?

JD: After a decade in investment banking, it was a significant change for me to take a leap of faith into starting this venture as we saw the massive opportunity. At this point, Trukkin has my complete dedication and I want to see the company evolve into a significant platform in the region.

At the same time, I continue to support other start-ups in personal capacity. My 2.0 journey after investment banking has just begun. n SEPTEMBER 2019 39

TURKISH CARGO

Turkish Cargo maintains steady growth

Turkish Cargo is on a roll, flying high with peak performance and record-breaking growth across the Asian and American markets.

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ccording to recent data obtained by the international air cargo information provider—World Air Cargo Data (WACD), Turkish Cargo increased its tonnage rate by 7.1% and grew substantially across the industry which shrank by 5.1% in the global air cargo market.

Maintaining its steady growth at the mega Istanbul Airport hub, Turkish Cargo increased its market share to 4.0% from 3.9% across the industry (which shrank by 4.0% percent in the global air cargo market), and maintained its position at the 7th rank in the air cargo market.

Turkish Cargo attained remarkable growth across the Asian and American markets. The flag-carrier cargo brand attained a growth rate of 34.4% across the American Continent, 19.3% across the Far East Region, and 12.2% across the Middle

40 SEPTEMBER 2019

East / South Asia Region based on the sold tonnage.

Operating direct cargo flights to 88 destinations through its fleet of freighters in addition to the cargo carrying capacity of the flag-carrier Turkish Airlines, the accomplished brand operates its current dual-terminal operations from Ataturk and Istanbul Airports.

Achieving a sustainable growth with its newly-launched destinations, current infrastructure and investments, Turkish Cargo keeps enhancing its capacity in more than 300 destinations included in its current flight network.

Turkish Cargo completes its seamless operations transition to new airport Meanwhile, the carrier continues to maintain its dual-terminal operations following its gradual transition process of

its operations to Istanbul Airport, one of the largest airports of the world.

The global air cargo brand Turkish Cargo continues to maintain its dual-terminal operations with full capacity on 7/24 basis.

Maintaining its services without comprising its quality and attention levels at both Ataturk and Istanbul Airports as ‘Dual Hubs’, Turkish Cargo attained a high ‘on-time’ performance ranking.

Turkish Cargo improved its 2018 ratings, attaining a growth rate of 11.6% in the sold cargo tonnage, and maintained its 7th rank on the WACD (World Air Cargo Data) list according to the data obtained during the first quarter of the year featuring a shrinkage of (-3.1) %across the industry.

Turkish Cargo has the capacity to handle 4 million tons of cargo annually at the new cargo terminal that will have an indoor area of 300,000sqm upon the final completion of

TURKISH CARGO

Turkish Cargo keeps enhancing its capacity in more than 300 destinations included in its current flight network.

all phases.

The carrier uses freighter flights from the existing cargo terminal at Ataturk Airport.

Turkish Cargo has taken concrete steps towards its targets set on the way to become one of the top-five brands of the air cargo industry with its investments and ever-developing fleet. n

Turkish Cargo transports five endangered white rhinos In an interesting development five endangered white rhinos were flown from Johannesburg to Shanghai via Istanbul.

Making its contribution towards the preservation of endangered animals besides its global trade carriage to 122 countries worldwide, Turkish Cargo recently carried five white rhinos born under the supervision of the specialist teams, to Shanghai from Johannesburg via Istanbul.

Five white rhinos, each weighing one ton and growing under

supervision until they reach the age of three due to their endangered nature, arrived at their new homes without a hitch. While the species of white rhinos was once the most common species, they are now endangered due to illegal hunting for their horns.

Performing live animal transportation between the qualified zoos, private institutions or acknowledged preservation and rehabilitation centres in order to prevent animal trafficking, Turkish Cargo carried these five white rhinos to Shanghai accompanied by the specialist teams and keepers.

For the purpose of performance of the live animal transportation service, Turkish Cargo carries out such specialist operations based on the IATA rules and regulations during the course of its acceptance, storage and shipment processes, and it meticulously implements the documentation, encaging, labeling and marking guidelines.

Turkish Airlines, which has operated its first international air cargo shipment in 1936, currently operates flights to more than 300 destinations around the world through its fleet comprising of 325 aircraft airliners and freighters.

SEPTEMBER 2019 41

Al Ghurair Automobiles

CMC rolls out new commercial vehicles in the region

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AG Auto is the exclusive dealer for the Taiwanese brand in the UAE

l Ghurair Automobiles (AG Auto) recently announced the arrival of a new range of CMC commercial vehicles. The Super Veryca CMC commercial vehicles have been completely revolutionized before being relaunched under the new exclusive dealer for the brand in the UAE, AG Auto.

“We worked closely with CMC to develop and manufacture transport and logistics solutions that meet the specific needs of our customers in the UAE before relaunching the vehicles under our dealership,” explained Declan McCluskey, CEO, AG Auto.

“While the Super Veryca vehicles might look deceptively compact in size from the outside, they are very spacious on the inside and are equipped with a superior 1.5L engine meeting Euro-IV emissions standards boosting efficiency in operations,” he added.

The new Super Veryca CMC vehicles are also equipped with the latest safety features and are available in range of models, all

42 SEPTEMBER 2019

equipped with the 1.5L engine and manual transmission.

Starting with the van range, there are options of a full panel van ideal for efficient and cost-effective last mile delivery; a semipanel van combining excellent load space with the option to carry 5 passengers; and a full window van offering space for 8 people for passenger transport.

The factory model has a high-tech integrated chiller body capable of temperatures ranging between -20°C to - 30°C The second choice is the pick-up with a solid rear deck with rail surround offering a flexible load space; and finally there is the factory built freezer model with a high-tech integrated chiller body capable of keeping

loads cooled to temperatures ranging between -20°C to - 30°C inside.

“With the rapid growth of the e-commerce sector in the UAE, we believe that our new range of CMC vehicles are tailored to enable online businesses operate more efficiently; whether it is by reducing shipping costs, covering more geographical area and/or reducing delivery time,” observed McCluskey.

The all-new range of Super Veryca CMC vehicles are suitable for small-medium sized businesses as well as larger corporates and offer cost effective transport solutions.

Established in 1969, China Motor Corporation signed a technical collaboration with Mitsubishi Motors Corporation and is now a leader among Taiwan’s commercial vehicles manufacturers.

AG Auto trades in automobiles and handles a diverse portfolio of car marques.

AG Auto operates through a fully functional network of offices in UAE, Kuwait, Saudi Arabia, Jordan, Thailand, and Hong Kong.

GCC Rail

PTV Group and Khatib & Alami partner for GCC Railway passenger & freight traffic forecasts PTV Visum software will be used to model the current conditions of the transport network for the GCC countries including traffic distribution and volumes across the different modes and transport links

P

TV Group, a top provider of software solutions for traffic and logistics sectors, will partner with Khatib & Alami to implement GCC Railway passenger and freight traffic forecasts study, including the development of the GCC wide model in PTV Visum software.

The project will ensure a more efficient way of transporting passengers and goods, by providing a comprehensive passenger and freight rail traffic forecast update “With this win, our transport planning software PTV Visum will become an integral part of GCC’s ambitious railway passenger and freight services network project. Once fully established, this network will connect all GCC countries, offering an integrated transport platform for freight and passenger services. The GCC network will be a game changer for daily commuters, offering hub to hub transit services, and for logistics operators providing efficient multimodal long haul connectivity,” commented Andrea

Petti, Managing Director, PTV Group, India, Middle East & Africa (IMEA).

The GCC Railway will be a regional integrated interoperable railway catering to the multi-modal transport needs of the GCC. It will link all the Gulf states and will serve as an alternative to air and sea travel for both cargo and passengers in the region. Being selected for this important transport project shows the growing popularity of PTV’s software among regional transport authorities in order to support transport planning and operations decisions.

Predictive analytics and traffic forecasts “We will work to provide passenger and freight traffic forecasting with the support of PTV Group software and modeling expertise for the GCC Railway by the

Cooperation Council of the Arab States of the Gulf-Secretariat General (GCC-SG),” remarked Ramadan Harb, Vice President, Khatib & Alami.

Traffic analyses and forecasts using PTV Visum will empower transport planners and operators to make key decisions such as where in the network shall the lines run, how they can be connected and the frequency of lines. This will ensure a more efficient way of transporting passengers and goods.

PTV Group takes a holistic approach that integrates all aspects of traffic, transport and logistics to create and promote sustainable mobility.

PTV develops intelligent software solutions for transport logistics, traffic planning and traffic management.

More than 2,500 cities deploy PTV products. Trips and routes for over one million vehicles are planned with the company’s software.

SEPTEMBER 2019 43

DP World-China Deal

DP World partners with ccc to develop ‘traders market’ The Global Port Operator is now on course to develop ‘Traders Market’, a sprawling 800,000sqm enclave in JAFZA, Dubai

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P World has announced a partnership with Zhejiang China Commodity City Group Company LTD (CCC) to develop the ‘Traders Market’ in Jebel Ali Freezone (JAFZA).

DP World will hold a majority share in the 70-30 joint venture. The Traders Market project will span approximately 800,000 square metres, with Phase 1 development covering about 220,000 square metres.

Phase 1 Capex is estimated at US$ 150million, with construction expected to start in Q4-2019 and take 24 months to complete.

First Freezone Market Place in the world The Traders Market will create the first smart Freezone market place in the MiddleEast for the retail and wholesale industries and aims to serve the wider region with a population base of over 2 billion.

The market will allow traders to benefit from lower supply chain costs by using the world-class multi-modal infrastructure available in Jebel Ali and Dubai.

44 SEPTEMBER 2019

International traders will be able to procure bulk products in Dubai at wholesale prices with the shortest delivery times and will be able to service demand more efficiently.

Phase 1 is estimated at US$ 150million Established in 1993, Zhejiang China Commodity City Group, based in Yiwu, in the Zhejiang province of China, is a leading developer and operator of merchandise trading platforms. CCC’s operations include the Yiwu Permanent Fair, China Yiwu International Commodities Fair and Yiwu Imported Commodities Fair.

Vast, sprawling complex These marketplaces span an area of some 5 square miles with approximately 75,000 traders and tenants. The footfall to the markets exceeds 200,000 visitors per day and attracts over 500,000 international traders annually.

“We are excited to announce this partnership with China Commodity City to develop the Traders Market. This investment showcases our trade-enabling strategy as we look to catalyse trade and the movement of goods through removing inefficiencies and lowering supply chain costs,” commented Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World.

“We are delighted that CCC has chosen Jebel Ali Freezone as its exclusive investment in the region, highlighting DP World’s ability to attract trade through its best-in-class infrastructure and emphasising Dubai’s position as the regions premier trading hub,” Bin Sulayem added.

“The Middle-East/Africa region is critical for the Belt and Road Initiative (BRI), and we aim to serve this high-growth market through the Traders Market in Jebel Ali, Dubai. We have chosen Jebel Ali for its efficient infrastructure, business-friendly environment and significant trade with China. Together with DP World we are confident this venture will be a success,” observed Zhao Wenge, Group Chairman, CCC Group.

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GAC

GAC eyes pan Asia expansion Company is expanding its contract logistics activities in the region with new managers appointed in Bahrain and Oman

GAC appoints new Vice President for Americas Region

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AC is tapping into the growing contract logistics business potential of the Asia Pacific, Indian Subcontinent and Middle East, with plans to further develop and expand in its operations in the regions.

That was the message Lars Bergström, GAC’s Group Vice President for Asia Pacific & Indian Subcontinent, had for the Group’s Contract Logistics Solutions experts who gathered recently in Colombo, Sri Lanka, to chart GAC’s strategy to increase its share of the business in their regions.

They discussed growing demand as a result of the rise of E-commerce, last mile deliveries and technological advancements, as well as the challenges the contract logistics sector faces.

According to Transport Intelligence’s Global Contract Logistics 2018 report, contract logistics providers in Asia Pacific will see their market share increase by almost 7% in the next four years. The contract logistics market across the Middle

46 SEPTEMBER 2019

East has also been growing, reflecting the region’s strategic position along trade routes between Africa, Asia and Europe.

Pan Asia expansion “China is the largest market for contract logistics in this region. The contract logistics market in Southeast Asian countries has also become increasingly vibrant,” affirmed Bergström.

The GAC Group is responding with its proprietary warehouse and transport management systems GACWare, endto-end customised integrated solutions designed with customers in mind covering both shipping and logistics, and its global presence with local expertise.

GAC operates warehouses and fulfillment centres in Dubai, Qatar, Bahrain, Indonesia, Malaysia, Singapore, Sri Lanka and Thailand, with a combined storage space of more than 450,000 square metres and over 300,000 pallet positions.

GAC Group President Bengt Ekstrand has announced the appointment of Pontus Fredriksson as Group Vice President – Americas, following the retirement of Bob Bandos who held the position since March 2018.

Bandos was part of the GAC Group for 15 years, also serving as Managing Director of GAC North America – Shipping. He will continue to support the Group in a consultative and advisory role until the end of the year.

A graduate of Stockholm University, Fredriksson has been with the GAC Group in since September 2007. During that time, he served in a variety of finance and managerial roles in the Middle East, most recently at Managing Director of GAC Bahrain for nearly four years.

Fredriksson is replaced in Bahrain by Johan Fulke who takes over as Company Manager. Fulke previously served in the same capacity at GAC Oman, where he is replaced

by Johannes Ericson who has relocated from Kuwait.

SOHAR Port

SOHAR Port prepares for growth and expansion

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ith several developmental plans underway, including future projects, SOHAR Port and Freezone continues to seek possibilities for growth and expansion. In line with this principle, SOHAR is now looking forward to leasing out their Terminal 2D. The sizable land area was initially developed in 2009 as a container terminal expansion but has now been dedicated to businesses involved in the logistics and metal sectors. The waterfront location hosts an area of 100-hectares with easy access to water and the surrounding industrial clusters.

“SOHAR is strategically positioned at the centre of global possibilities, and has a consumer reach of over 2.2 billion across Africa, Asia and the Middle East.

Potential customers are generally based outside Oman, so we aim to garner as many opportunities as possible to support them in setting up at SOHAR. Additionally, with the help of our One-Stop-Shop facility and the benefits we offer, investors will receive a favourable return on investment,” remarked Mark Geilenkirchen, CEO, SOHAR Port and Freezone, commenting on the potential of Terminal 2D. The One-Stop-Shop (OSS) service at SOHAR Port and Freezone acts as a singlewindow for clients to obtain all necessary documentations and operate their businesses efficiently and effectively. It provides multiple key amenities including company registration and licensing, plot work and labour permits, visas, under a single window to deliver high-quality services.

“With several regional ports currently

With its distinctive strategic location within close proximity to the natural deep-water port, SOHAR’s Terminal 2D, currently hosting an area of 100-hectares with infrastructure and related amenities, is now being opened for leases.

Mark Geilenkirchen, CEO, SOHAR Port and Freezone running out of space, SOHAR still has the capacity to further expand and attract prospective investments. Clustering is an innovative form of business. Therefore, the close proximity to our petrochemical, logistics and food clusters will also support the creation of upstream and downstream opportunities for further business developments. Moreover, as the Port and Freezone are both managed under a single

entity, this allows for a seamless connection between the two, while also enhancing efficiency for feedstock imports and product exports,” Geilenkirchen added.

Strategically located by the sea, Terminal 2D waterfront location is perfect for businesses looking to take advantage of the deep-water facilities and the accessibility of logistic services surrounding SOHAR Port and Freezone.

SEPTEMBER 2019 47

EXPERT COLUMN: SPEED IS PARAMOUNT

The new reality: Speed is the competition

Pace of delivery emerges as the new challenge for mid-size manufacturers and retailers

Velocity, an integral part of the logistics landscape, is driven by end-to-end supply chain management and its indispensability transcends industries and markets.

In his contribution, Tom Craig, President LTD Management, Pennsylvania, USA, a leading authority and professional consultant on logistics and supply chain management and regular contributor to Global Supply Chain surveys the wider ecosystem and advocates a holistic approach to the post-order delivery conundrum.

48 SEPTEMBER 2019

EXPERT COLUMN: SPEED IS PARAMOUNT

Problem: It starts with E-commerce. Two days from placing an order until delivery; and that standard is moving to one day and same day. Retailers are struggling with customer service and customer expectation for both in-store sales and online.

This service expectation is going beyond online and Direct-to-Consumer. Across industries and markets, business-as-usual is being replaced by increased customer demand for quicker order performance.

Manufacturers and retailers, especially mid-size, are dealing with new realities.

Customers want faster, on-time, and complete deliveries of orders. At stores, they do not want product stock-outs.

It is now about order delivery velocity—a derivative of inventory velocity which is driven by supply chain velocity. The challenge is how to gain that speed. The way to do it, the way to meet customer expectations, is with supply chain management (SCM).

Against this, mid-size and small firms are competing against corporations and large firms. And these big companies have deeper pockets than SMEs to deal with what is happening. Mid-size firms need to understand what is needed and how they can compete when speed is the requirement.

Supply Chain strategy Supply chain management is now strategic.

Amazon weaponised SCM. This change, this challenge, is compounded after years, for many firms, of under-investing in supply chain management and its structure of process, technology, and organisation.

E-commerce, with the Perfect Order and velocity requirements, exposed design flaws and operations shortcomings in Supply Chains of many retailers, grocers, CPG (Consumer Packaged Goods) / FMCG manufacturers, and suppliers.

Originally, supply chains were meant for start and stop, to hold inventory to feed stores, customers, or factories. Now they are about velocity, the antithesis of the prior. This sets part of the challenge of transitioning to what is happening.

For the current supply chain, indicators of supply chain problems, and obstacles to change may be seen: Not recognising and understanding supply chain cycle time. Long times to move products from purchase orders/ suppliers through to customers or stores are a hidden factor in this situation. It means noticing the time consumed in the upstream/inbound supply chain and in the downstream / outbound supply chain.

Defining supply chain performance by its logistics costs: It should be measured by the Perfect Order—the most complete company metric of orders delivered complete, accurate, and on time. It is valid for customer orders, purchase orders, and internal restocking.

Much expediting and firefighting: Too much is a sign of a lack of process which is an element of supply chain structure. It also means a lack of effective product flow.

Recognising another performance metric--inventory turns: Slow turns can mean excess working capital that is not generating a strong return on investment and which can be used elsewhere in the company, including upgrading the company supply chain.

Expanding inventory performance by understanding being inventory rich and yet have stock- outs and problems filling orders or making products. Or the company cuts prices to sell excess merchandise.

Obsessing about Last Mile costs: This is a misdirection of attention and resources on the real issues and needs.

Inventory is both a key issue and a sleeper when it comes to speed. It is central to the Perfect Order and to Order Delivery Velocity. Yet, it is also a sign of problems while being defined as an asset by accounting / finance. As such, it can be overlooked when measuring performance.

There are many reasons for the inventory situation, such as: The prior, standard design supply chains that are based on the concept of node-link, stop and go. This approach also creates lean defined waste with extra time and inventory. The bottom line is stop-andgo is a momentum killer, the antithesis of velocity.

Supply chains were built to connect pieces of the company, whether it was factories or stores. They were cobbled SEPTEMBER 2019 49

EXPERT COLUMN: SPEED IS PARAMOUNT

This is especially when the easy answer is more challenging when it comes to velocity.

First, there are supply chain essentials that should be acknowledged. These are central to the new supply chain.

Inventory velocity: Much inventory sits in storage. No value is added. Products are supposed to flow. From a lean view, this is waste. Move inventory more quickly through the supply chain is important to the new speed reality, to lean, and to good financial liquidity practice.

Time compression: Removing excess time is vital for inventory velocity. Unnecessary time exists throughout the supply chain.

Compressing time means being able to react more quickly to changes. together. The company was not created as an end-to-end supply chain—which is what is required now. Instead, there are inherent delays which are compounded with global sourcing and other factors. The idea is to redesign as an entire supply chain based on the speed of product flows.

Much of the excess inventory and working capital carried is in the upstream supply chain. That is where the longest time is in the complete supply chain for sourcing and logistics. Longer time means carrying more inventory and increased chances for stock-outs.

Factor in the time impact of container line service for bringing in products from around the world. The service can be slow and not reliable. That adds to the need to increase inventory to buffer against the service uncertainty.

The impact of this design and the time is much investment in inventory that could be used elsewhere and not being able to sell products at a high revenue point. Add to it the focus on logistics costs and not on the total supply chain and its speed.

It means inventory—raw materials, components, and finished goods. For manufacturers, this situation crosses both Build-To-Order (BTO) and Build-To-Stock (BTS) firms. It has been an increasing pressure with omni-channel and its e-commerce.

50 SEPTEMBER 2019

Solutions SMEs often lack the deep pockets that large companies have. Money is often a differentiator between mid-size firms and major companies as a way to adapt to the new reality. This spending often shows in technology as a silver bullet.

Tech emphasis can miss deeper issues.

Mid-size companies can compete by recognising and addressing these bigger process-related topics, which is more important. This is important for both performance improvement and for process improvement. Remember, technology is a process enabler. If the process is flawed, then the ability of technology to improve it is constrained.

For mid-size firms with limited resources for technology, emphasise end-to-end supply chain process improvement to create increased inventory velocity.

At the minimum, there are two ways to look at the end-to-end supply chain. One is upstream and downstream. Two is inside the four walls and outside the four walls.

Many define it as in by the downstream part and inside the four walls.

Often companies, regardless of size, look for quick fixes. There are none to make the transformation. So avoiding them lets firms focus on what the problems and needs are.

Upstream supply chain: Supply chain management pulls inventory. Upstream is the origin for supply. Extending upstream is natural to doing it. This includes suppliers and their supply chains. It is fundamental to achieving needed speed.

Advanced process and technology integration: Supply chain process flows horizontally across the internal organisation and externally to suppliers and customers or stores. The horizontal direction contrasts with organisational pyramids with their vertical emphasis and implied silos. Gaps to the process impact performance Technology can link the processes, both internal and external, for visibility and control.

The above elements are fundamental to the new supply chain to drive speed.

Defining the solution is a multi-step activity and includes these steps: Recognise and understand the complexity and length of supply chains. They are not linear and are more than the four walls. Supply chains cross the internal organisations and extend beyond the company boundaries--both upstream and downstream. Also, there are supply chains within supply chains.

The straight-line supply chain is an illusion: It ties to the ‘agile’, one-size-fits-

EXPERT COLUMN: SPEED IS PARAMOUNT

all view. Every firm has a supply chain— and more. Think of the Mississippi River in the US. It is very long, runs from Minnesota down through Louisiana and into the Gulf of Mexico. However, the river is not a single entity. It is fed by 7,000 streams, water basins, and smaller rivers.

These smaller bodies of water flow through 31 states and 2 Canadian provinces. The great river is not a single entity. Neither is the supply chain. That is how supply chains are—many branches of inventories and activities—and how they evolved.

Assess the end-to-end supply chain: Firms must know what the operations performance is and identify where problems are. Think of a macro to micro approach— company strategy, supply chain strategy, and operations. Use strong supply chain metrics to do this. Note, the supply chain strategy should be more than what is needed to support the firm’s strategy. It should provide a strategic direction that is driving much of what is happening.

The assessment should be done with strong supply chain management, not logistics, metrics. This effort is very different from an audit. The point is to know where the company is now as a first step to transforming.

Map the supply chain: There are two approaches. One is to map what is done, why and how. This starts with what people say. Then analyse it with real transactions.

It can identify gaps and redundancies that impede speed.

The other is to use value stream mapping, a lean tool, to see activities and time across the current key, high priority, criticality/ high-risk product movements, or high volume. This tool helps with identifying ways to reduce excess time in the supply chain.

Map all actions, both within the firm and external. Then it can be analysed for waste—excess time. Time compression is central to achieving velocity. From these efforts comes a new stream map with much time removed. The result is speed.

Include suppliers and outside logistics providers: It is not just about the company activities—the four walls. It is also about the outside participants in the supply chain. Assessment and mapping should include the various logistics providers and outsourcing. It is important to understand how they perform and fit in the current supply chain and in the direction the company is going.

The Perfect Order is the most complete company metric of orders delivered complete, accurate, and on time.

Segment the supply chain: The days of the monolithic, one-size-fits-all supply chain are gone. Segment based on common supply chain activities which may, in turn, involve groups of customers, products, or other factors. This also enables seeing where velocity is needed.

Prioritise and emphasise: With these steps, the purpose now is to prioritise where efforts should be placed. Focus on and change what is important. Everything cannot be done at once. Note, this is not the same as cherry-picking.

Trying to do it all is a recipe for struggling to accomplish anything. All segments, all needs are not equal. Especially if resources are an issue for technology, emphasise the end-to-end supply chain process.

Design, test, and implement: Develop a plan for supply chain improvement.

Test it to see where changes are needed.

Then implement. Remember the logistics elements should be part of the solution.

Warehouses, for example, should be aligned and differentiate between moving—not storing--pallet load/cases of products as compared to peaches.

Remember, with the design and segmentation, there may be different service requirements of channels. The solution may

be a combination of approaches. One way may not answer all needs, both cost and service. That may require data analytics, such as regression analysis, to understand order size, number of SKUs per order, which products are likely to be ordered together, and other questions.

Assess where you are now. Map the supply chain. Segment it to gain insights.

With that, construct the network for what is the best way to meet customer demands—warehouses—how many, where located, size; or warehouses of different sizes depending on order volume; or a mix of warehouses and stores. Segment based on common supply chain or other significant issues. The monolithic purpose, a one-size-fits-all supply chain is counterproductive to creating velocity.

Also, the real issue is the total supply chain, not just one part, such as fulfillment.

Think about it. How does forcing this at the end of the supply chain affect the total chain? What changes were required upstream? Or are there hidden problems if this is to be more than a seasonal time service?

Conclusion This is about the end-to-end supply chain and its velocity. There are no shortcuts without sacrificing results. Segment the supply chain; it is not a one-size-fits-all.

Do not treat the upstream segment as an afterthought. Remember, that is where the supply of supply chains begins.

Also, with the emphasis on speed, then assess how logistics fits in. Till now, transport and other logistics areas have been treated as tangential to supply chain management. Technology is a process enabler, not a silver bullet. Focus on the process.

The supply chain transformation will be a continuing effort. The world is in the early stages of a global supply chain revolution.

This is all encompassing and includes the Internet of Things (IoT); Blockchain; Platform Business; integrating the three supply chains of products, information, and finance; and more! n SEPTEMBER 2019 51

SMEs

UAE SMEs expected to boost export revenues despite challenges SMEs have faced constraints with international shipments and deliveries. Now technology is giving smaller companies the virtual scale and bandwidth needed to compete.

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n overwhelming 91% of small and medium-sized (SME) businesses doing cross-border trade in the UAE are focusing on global growth and expect export revenues to growth over the next few years, according to research by online freight service Shipa Freight.

Shipa Freight’s global study of 800 SMEs from developed and emerging markets, including 100 small and medium-size businesses from the UAE, examines the trade patterns and barriers experienced by SMEs. Despite their desire to export, SMEs in UAE have faced difficulties when shipping internationally. A majority 76% believe their national government should offer more support and services to SMEs looking to ship internationally.

Yet 85% of UAE SMEs say that technology is levelling the playing field for them and allowing them to operate globally.

“The logistics industry has traditionally ignored SMEs and done far too little to help them find new markets and grow,” remarked Paul Rehmet, Chief Product Officer, Shipa Freight, the online global freight service powered by the Agility network.“Technology is giving them the ‘virtual’ scale they need to lower their costs, get real-time information and compete,” he added.

Global growth The study reveals that 67% of UAE SMEs are prioritising export markets over their home market.

52 SEPTEMBER 2019

For UAE companies, the market with the most potential for growth is the Middle East (55%). UAE SMEs find exporting to Oceania poses the biggest challenge, with more than half (55%) finding this region the most difficult region to export to.

Roadblocks Unfortunately small and medium-size businesses in the UAE are having to navigate widespread trade difficulties bureaucracy, pricing confusion, political and economic risk -- in pursuit of global growth; this is concerning given 73% say that if they don’t export more they won’t be able to grow.

When it comes to shipping, their number one concern is economic risks (49%) – such as recession or sharp downturn -- closely followed by political risks, goods being lost or damaged and changing customer or supplier requirements (46%).

For UAE SMEs export regulations are the top challenge (40%). Not having an accurate picture of costs is the greatest difficulty small business leaders in the UAE have faced (51%), followed by the fact that the complexity of international shipping makes it difficult to understand documentation requirements (49%).

Globally, smaller companies account for an estimated 95% of all businesses and employ two-thirds of the world’s workers.

Critics of globalisation have argued that decades of efforts aimed at easing the flow of goods, capital and jobs across borders has come at the expense of SMEs and disproportionately benefited multinationals and other large businesses.

Paul Rehmet, Chief Product Officer, Shipa Freight “Smaller businesses used to think they couldn’t compete in trade. Now many see it as their best path for growth,” Rehmet commented.“SMEs know more needs to be done to empower them to trade internationally, as the business and social benefits for economies are huge. This is where technology is changing the game, with online tools enabling SMEs to conduct transactions, get financing and gather market intelligence,” he concluded.

New tech boosts export prospects Smaller companies in the UAE see technology as a way to close the gap with bigger competitors, and get quick access to competitive shipping options; 86% believe technology is transforming the logistics industry.

However UAE SMEs are not yet embracing digitisation to the same extent as other markets, with only 15% using an online rate quotation and booking tool, the second lowest market in the research after the UK.

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IVECO

IVECO convenes vehicle body builder conference in Turkey Conference provided a forum to discuss and share new business opportunities in the African and Middle Eastern markets

Top Italian international industrial vehicles manufacturing company IVECO recently invited competent vehicle body builders from across Turkey to present the latest trucks in its growing product range and introduce them to the new organisation created to facilitate body builder activities in Africa and the Middle East.

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VECO Turkey recently invited industrial vehicle body builders from across Turkey at a key corporate convention that took place in the country’s capital Istanbul. The event, which follows IVECO’s biannual body builder event held last November, aimed to discuss with the participants new business opportunities in African and Middle Eastern markets The convention was attended by more than one hundred vehicle body builders.

Around 70% of the participants specialized

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in the light and medium segments, manufacturing body types ranging from box body to more complex super structures such as road sweeping and waste disposal. The other 30% specialized in the heavy segment with applications such as mixers, tippers, trailers.

In his opening speech, IVECO Turkey Marketing Director Tansu Giz stated that the presence of the professional body believers was a testimony to their commitment towards consolidation of their

partnership with IVECO.“We organized this event with the aim of offering body builders new opportunities abroad, since the Turkish market has contracted for two consecutive years in 2018 and 2019,” he noted.

During the meeting he also spoke about the improvement in IVECO Turkey’s performance on the market; the company has reached the third position among peers in the ranking for the 3.5 tonne segment, and has outperformed the market on a year-to-date basis.

IVECO

Vast geographical footprint Fabio Pellegrinelli, Medium-Heavy Line & CKD (Completely Knocked Down) Manager for Africa and Middle East (AME) markets, presented an outlook of the commercial vehicles industry in the AME region, and highlighted the capability of IVECO’s sales and service network in these markets.

“IVECO works closely with Turkish bodybuilders with our dedicated team and a dedicated line-up in order to support them harness the opportunities offered by the

African and Middle Eastern regions. This area is rapidly changing: we are facing the challenge of a competitive market where flexibility and affordability are not enough anymore; it is increasingly necessary to set up a second assembly plant locally in order to comply with local import regulations,” observed Andrea Scollo, AME Key Account Direct Sales and Tenders Manager.

We strongly believe in Turkish bodybuilders. By combining their qualitative products, their positive impact in AME countries with IVECO’s network and

IVECO Turkey’s performance on the market; has reached the third position among peers in the ranking for the 3.5 tonne segment

assembly facilities, we are confident that we will jointly increase our penetration and market share, serving these markets with high-quality products adapted for the climactic conditions in the region for a large variety of applications, assembled locally where necessary,” he added.

At the end of the session the vehicle body builders had the opportunity to ask questions and provide their insights and feedback.

New dedicated website launched IVECO Turkey also presented the updated website dedicated to vehicle body builders, which provides the manufacturer’s technical drawings and guidelines for fitting bodies to each model and version in its vehicles offering.

The meeting ended with a guided walkaround of the complete range displayed in the auditorium: the Daily, Eurocargo, Stralis X-Way and Trakker. IVECO offers a complete range of light, medium and heavy vehicles, with the latest models being launched simultaneously on the Turkish and European markets.

The offering is the result of IVECO’s focus on its core values of Sustainability, Total Cost of Ownership, Technology and Business Partnership with its customers.

IVECO designs, manufactures and markets a wide range of light, medium and heavy commercial vehicles, off-road trucks, and vehicles for applications such as off-road missions. The brand’s wide range of products include the Daily, a vehicle that covers the 3.3–7.2 ton vehicle weight segment, the Eurocargo from 6–19 tons, the Trakker (dedicated for off-road missions) and the Stralis, both over 16 tons capacity. In addition, the IVECO Astra brand builds off-road trucks, rigid and articulated dumpers as well as special vehicles. n SEPTEMBER 2019 55

Opinion Piece: Supply Chain Security

Risks confronting supply chains With expanding globalisation and cross border trades, the supply chain has been confronted with complexity and insecurity. Supply chain risk management has become an important tool for managing the risks in the supply chain. The risks manifest in the form of climate risk, demand risk, operational risk, regulatory risk and supply risk to name a few.

In this input, Professor Omera Khan, accomplished academician, researcher and professor and now a frequent contributor to Global Supply Chain, examines the risks and challenges to present day businesses and how to avert or minimise these —Editor.

O

ne of the biggest changes to the business landscape over the last two decades or so has been the significant increase in the level of risk confronting supply chains. We have moved from a world of relative stability, and hence predictability, to an environment that is characterised by turbulence and uncertainty with a consequently heightened potential for disruption to business activity.

Supply chains are increasingly being impacted both through external events such as natural disasters and changes in the geo-political arena as well as through events within the supply chain. Whilst natural disasters, which seemingly are on the increase, attract much attention often the greatest risk to business continuity is systemic, the risk is embedded in the supply

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chain because of managerial decisions concerning the design of the supply/ demand network.

Coping with disruptions Disruptions to supply chains, whether they are natural, accidental or intentional, are increasingly distorting supply chain performance. Given that such disruptions are unlikely to decrease in the short term, supply chain risk mitigating solutions will play an increasingly significant role in the management of supply chains.

Klaus Schwab Founder and Chairman of the World Economic Forum states that ‘the acceleration of innovation and the velocity of disruption are hard to comprehend or anticipate and these drivers constitute a

source of constant surprise even for the best connected and most well informed’.

The British Standards Institute (BSI) defines ‘A supply chain security management system combines traditional supply chain management practices with security measures – allowing you to protect your business against threats such as piracy, terrorism and theft. Important aspects of security management include validating supplier credentials, screening cargo and securing cargo transit’.

Network complexities and challenges As supply chains are global complex networks, companies face considerable

“Disruptions to supply chains, whether they are natural, accidental or intentional, are increasingly distorting supply chain performance. Given that such disruptions are unlikely to decrease in the short term, supply chain risk mitigating solutions will play an increasingly significant role in the management of supply chains.”

challenges to understand security risks and to keep pace in an increasingly volatile world.

According to the World Economic Forum’s (the global risks report 2018), systemic risks continue to grow affecting our economic, environmental and technological systems.

Given this reality, the question revolves around how organisations can best prepare for inevitable disruptions, such as geopolitical trade wars, enabling technologies, shifting centres of gravity in the supply chain, rise of the on-demand / omni-channel consumer. However, the biggest risk is ignoring the risk itself and not recognising that change is inevitable.

One could argue that the uncertainty of the current geopolitical situation is a cause

for heightened security risk around the globe today. This adds to the contagion and the cascading of risks to other areas thereby increasing the vulnerability of global supply chains. The trend towards nationalism and populism will have an impact on global trade.

One scenario is that with an increase in protectionism, cost will rise, living standards will fall and global growth stalls or falls.

Potentially this will reduce the demand for global shipping and transport and freight rates fall because of over-capacity and profitability declines – in short a downward vicious spiral.

Trade policy changes Trade policy changes were the most commonly cited risk in all regions, in both developed and emerging economies according to a McKinsey’s mid-year global economic snapshot. The report describes expectations of for trade activities are declining and trade related risks are threatening growth (McKinsey & Company, 2018).

It is thus fair to say that tensions over trade and globalisation are not only accelerating disruptions but are creating new risks for businesses, and it is important for managers to navigate a route through these more uncertain and turbulent times.

As the McKinsey highlights ‘growth is shifting, disruption is accelerating and societal tensions are rising, confronting these dynamics can help leaders craft a better strategy and ultimately forge a brighter future’.

Today’s complex logistics networks of storage and intermodal transport face security risks both physically and virtually.

The growth of and use of information technologies has ironically exposed supply chains to increased vulnerabilities, and security risks entering any part of that chain can affect many parts of the supply chain operations, from goods in transit to supply chain partners that have different standards or priorities when it comes to security.

A point of consideration must also be placed on the displacement of threats, so for example a change in security in one part of the supply chain may affect other parts. Improving warehousing security, for example could mean that thieves have shifted their attention to goods in transit.

Ultimately the design of supply networks should be at the forefront of any CEO when charting a new route through these turbulent times. It is possible that security risks when identified early can be mitigated and designed out of the supply chain.

Strong alliances, these could be competitors, a flexible and agile supply network that can be ramped up or down when the need requires it and a dedicated and proactive response system and team that enables a responsive and effective supply chain security system.

(Sources: World Economic Forum (2018) The Global Risk Report. Insight Report 13th Edition McKinsey & Company (June 2018) Economic Conditions Snapshot, June 2018: McKinsey Global Survey Results)

Multiple concerns Transport networks, cargo diversion, hijacking and piracy are all concerns and so are cyber threats as mentioned earlier.

Shared IT platforms mean that criminals can enter any point in the chain.

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Opinion Piece: Artificial Intelligence

The Promise of Decentralized AI for Middle East Businesses

As AI algorithms, and the computing power that drives them, improve year-on-year, their ability to positively transform the world in which we live, is unquestionable, opines Andy Coussins, Senior Vice President and Head of International at US Global Business Software Company Epicor.

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A

rtificial intelligence (AI) is making its presence felt in every aspect of our daily lives—from the new breed of virtual assistants in our homes, to the spam filters that eliminate unwanted spam emails from our inboxes.

PwC predicts that AI could contribute up to US$ 320billion to the Middle East economy by 2030. Another recent PwC research report revealed how companies are increasingly initiating AI models at the very core of their production processes, in a bid

to enhance operational decision-making and provide forward-looking intelligence to people in every function throughout the business.

To many, this move to AI is no surprise.

After all, robots have been used for years in many manufacturing disciplines, so the progression to AI seems like a logical next step. Either way, there is no doubt that the future is one in which machines and humans will work alongside one another with increasing regularity.

Unanswered questions —the trust element AI is big business—US venture capital investment in the sector reached US$ 6.6billion in the first three quarters of 2018, compared to US$ 3.9billion in the same period the year before. Meanwhile, AI companies have become attractive takeover targets, with the number acquired outright reaching a record 35 companies at a combined value at US$ 3.8billion.

Despite this positive outlook, some unanswered questions remain. Concerns continue to grow about the impact of AI on privacy, cybersecurity, employment, social inequality, and the environment.

Customers, employees, boards, regulators and corporate partners are all asking the same question―can we trust AI? As AI in the marketplace increasingly becomes controlled by just a handful of big companies that own cloud-based AI platforms and application program interfaces (APIs), the issue of trust is stimulating growing calls for the decentralization of AI. The main fear for businesses is that a centralized model will lead to the monopolization of the AI market, which in turn could cause unfair pricing and stifle innovation.

A new AI model Decentralized AI—born at the intersection of blockchain, on-device AI, and the Internet of Things (IoT)—helps solve this challenge and promotes transparency.

It also ensures interoperability and encourages innovation among an unlimited number of other AI companies. Ecosystems such as SingularityNet are already fostering wider collaboration among the global

decentralized AI community—a case of safety in numbers, if you will.

More than that, such marketplaces have been designed to ensure that—in the event of AI reaching mass market usage— contributors and users of the technology will be the ones to control it, rather than a few powerful entities.

It is very much a meeting of minds for the common good that has close similarities to what Sir Tim Berners Lee initially wanted the Internet to become, before it took a turn to the dark side.

“As AI in the marketplace increasingly becomes controlled by just a handful of big companies that own cloudbased AI platforms and application program interfaces (APIs), the issue of trust is stimulating growing calls for the decentralization of AI.”

Promoting interoperability and decentralized AI will ultimately lead to an era of AGI (artificial general intelligence) that will empower businesses. For example, it can help manufacturers to detect anomalies and generate predictions that can be used for enterprise resource planning (ERP) and help improve their processes in the future.

Emerging regulatory issues

companies to keep siloed data repositories within geographic borders to ensure compliance, and respond quickly and easily to changes in regulations across territories— something that would be particularly beneficial here in the Middle East.

Maintaining growth and a competitive edge Many regional businesses are already using AI to improve their operations and enhance the customer experience they deliver.

The rate of adoption is set to accelerate, in the second half of 2019, as business leaders realize the benefits of deploying AI throughout their organizations to create maximum value.

This is particularly pertinent, since the power of AI is further amplified when integrated with other technologies, such as analytics, ERP, IoT, and blockchain.

The use of AI has already enabled companies to eliminate many historically repetitive and manual tasks across the supply chain. However, the notion of building centralized AI inhibits a potentially more organic approach that supports the natural processes of variation, competition, adaption, and selection.

Decentralizing AI will help address this challenging issue, fostering an environment in which the developer community can build innovative algorithms and solutions that enable businesses to grow and maintain—or even gain—a competitive edge.

Decentralized AI may become even more necessary for another reason. Stringent regulations around data privacy are already impacting AI and may limit its growth, due to the restrictions they place on the movement of cross-border data.

For example, last year’s General Data Protection Regulation (GDPR) in Europe gives individuals the right to see and control how organizations collect and use their personal data.

The regulatory framework also imposes heavy fines on organizations, should this data become compromised in any way― something we are seeing more of in the news with British Airways becoming the latest brand-name company to receive a massive fine.

As such, AI is not just an intelligence problem, it’s also a data problem. A decentralized AI ecosystem would help SEPTEMBER 2019 59

Warehousing

E-commerce to accelerate UAE warehouse market

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he demand for warehouses is growing exponentially in the UAE as the popularity of e-commerce and online shopping continues to increase. Despite the increase in demand, the supply for storage space in the country remains low, according to global real estate services and investment firm CBRE. This gap will be significantly filled in

by Senaeyat, the UAE’s first lease-to-own industrial warehouses.

According to Saleh Abdullah Lootah, CEO, Lootah Real Estate Development, developer of Senaeyat, online shopping transactions in the region and in the UAE have been increasing by double-digits year on year, which in turn creates more interests for warehousing.

“All over the world, e-commerce has been driving the expansion in the warehouse leasing market. This has resulted in a huge demand for warehouses and

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UAE ranks third globally and first regionally in emerging markets for logistics. Consequently, the demand for warehousing facilities and storage space is on the upswing and supply is low. Now a Dubai based developer is aiming to close the gap. fulfillment centres, today particularly in the UAE. However, the warehouse inventory in the UAE has not been catching up with this upward trend,” explained Lootah.

“The Senaeyat project will strongly contribute to the growth of UAE’s industrial and logistics ecosystem by providing costeffective options for businesses without compromising excellence. As an affordable industrial partner, Senaeyat empowers businesses to own warehouses over a period of only 10 years and convert rental expense to property asset,” he added.

UAE leads customer spend UK-based consultancy firm Business Monitor International (BMI) puts the average annual online spend per person in the UAE at around US$ 300, more than three times than Saudi Arabia’s US$ 90 and France’s US$ 94.

Visa recently reported that payment volumes in MENA region surged by 44% in 2018 over the previous year. The UAE’s e-commerce market is estimated to be worth US$ 27bn by 2022, a report from Admitad MENA, a branch of the Global Affiliate Network Admitad, shows.

According to 2019 Agility Emerging Market Index, the UAE is among the top 3 emerging markets in the world for logistics after China and India and ranks first in the region.

The country’s logistics markets have also benefitted greatly from investments in physical infrastructure, earning as much as US$30bn (AED110bn).

Lootah Real Estate Development (Lootah), one of the region’s most prominent real estate developers, has launched Senaeyat, last June to fill in the demand for logistical needs and easy warehousing solutions.