Page 1

June 2016 Issue 27

ENHANCING THE BUSINESS OF LOGISTICS

EI - emotional intelligence

Rethink and refocus talent development

Power Women in Arabia

Shaping the path for gender equality

RSA-TALKE

Enhancing chemicals logistics’ solutions in Dubai South

THE TALENT

DILEMMA Developing the workforce


LogiMat® - your ideal storage and picking solution for small parts The vertical lift LogiMat® is a well-rounded complete solution for highperformance storage and order picking. It can be used as a stand-alone solution or integrated with other warehouse areas, conveying systems or workstations to help optimise internal processes. Thanks to its scalable concept, the functionality of the LogiMat® can be customised specifically to individual customer requirements. Contact us today for more information. SSI Schaefer Systems International DWC LLC P: +971/4/8048 100 · info.ae@ssi-schaefer.com · www.ssi-schaefer.com


Hiring talent for future growth SIGNATURE MEDIA FZ LLE P. O. Box 49784, Dubai, UAE Tel: 04 3978847/3795678 Email: info@signaturemediame.com Exclusive Sales Agent Signature Media LLC P.O. Box 49784, Dubai, UAE Publisher: Jason Verhoven jason@signaturemediame.com Director: Peter Dass peter@signaturemediame.com Managing Editor: Munawar Shariff munawar@signaturemediame.com Art Director: B Raveendran ravi@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.

Around the world, populations are ageing. In developing economies, transportation and logistics as a sector is growing rapidly – but workforce development isn’t yet keeping pace. How will transportation and logistics companies cope? The most usual hurdle is attracting people for work in this industry. All prospective candidates visualise long arduous hours working at the back end of an organisation making the company and economy function. But of course it isn’t at all like this. Transportation and logistics as a sector isn’t viewed as attractive by most job seekers – when it’s considered at all. Many transport jobs are considered to be low-paying dead-ends. Higher skilled logistics roles with good pay and advancement potential don’t even make the radar screen of many talented graduates. The problem is compounded by a dearth of training programmes in many areas and an insufficient focus on learning and development within individual companies. Attracting more women to the male-dominated transportation and logistics sector won’t be easy, but companies that succeed will have access to a rich new labour pool. Gender and cultural diversity can pay off in other ways too, for example by sparking creativity and enhancing innovation. Pg 24. Closely linked to the cover story is the report titled Power Women of Arabia by AT Kearney (page 38). The economic benefits of increasing gender diversity in the workplace make a strong case for encouraging female participation. The GCC has seen significant progress in recent decades - female participation in the workforce has increased by 33 per cent since 1993, and the GCC has been one of the regions that has achieved higher progress over the past two decades (see figure 1). Additionally, the trend is consistent across the GCC, with an increase in all countries, ranging from 15 per cent in Kuwait to a remarkable 63 per cent in the UAE. There’s a lot more inside these pages. Do write to us with your thoughts. See you in July.

Munawar Shariff Managing Editor munawar@signaturemediame.com

JUNE 2016 3


June 2016 Issue 27

ENHANCING THE BUSINESS OF LOGISTICS

24 06 News 16 Country report Saudi Arabia

Saudi Arabia expands its ports The Saudi government is investing in the expansion and upgrades of its ports

19 Country report - Saudi Arabia

Investing in the transport sector Since the global slowdown of 2008, the Saudi authorities have committed huge sums in infrastructure spending to spur demand

24 Cover The talent dilemma In developing economies, transportation and logistics as a sector is growing rapidly – but workforce development isn’t yet keeping pace 4 JUNE 2016

32 Exploring emotional intelligence

Trends and developments force companies and organisations to rethink and refocus on how to attract and develop talent for the future

38 Power Women in

Arabia: Shaping the Path for Regional Gender Equality

While significant progress has been made in gender equality, A T Kearney’s recent regional study shows that a concerted effort of all stakeholders is required to reach the final goal

48 Drone delivery UPS Foundation partners with Zipline, a California-based robotics company, and Gavi, the Vaccine Alliance, to explore using drones to transform the way life-saving medicines are delivered

38

52 A holistic approach New label printer/applicators on 17 tomato-packing lines at Florida based West Coast Tomato has become an example of ingenuity in food track and trace

56 Strategy, growth and

success for DP World

DP World is moving ahead full steam, growing internationally, and creating avenues for future growth

60 Enhancing chemicals logistics’ solutions in Dubai South

RSA-TALKE opens phase one of their all-new integrated chemicals hub in Dubai


2020 READY

We can help your business grow. When it comes to integrated logistics solutions across the supply chain, you can trust Al-Futtaim Logistics to get your business moving ahead. Automotive: Vehicles, Spare Parts, Machinery | Retail: Fashion, Footwear, Food, Electronics, High Tech, Furniture Engineering | Industrial | Project Cargo: Heavy Lift and Break Bulk | Humanitarian

P.O. Box 61450, Dubai, United Arab Emirates. Tel: +971 4 881 8288, Fax: +971 4 881 9157 e-mail: contact@aflogistics.com

www.aflogistics.com


Expo 2020 Dubai’s Premier Partnerships take off with Emirates Airline

DP World announces new Sukuk on Nasdaq Dubai DP World has announced that the company has raised US$ 1.2 billion (AED 4.4 billion) in a new sevenyear sukuk set to be listed on Nasdaq Dubai, the Middle East’s international financial exchange. The issue received strong investor interest and was 2x oversubscribed receiving more than USD two billion (AED 7.3 billion) in bids. The new sukuk issue followed DP World’s successful refinancing of over USD 1.1 billion (AED 4.04 billion) of the existing USD 1.5 billion (AED 5.5 billion) 2017 sukuk. The remaining

6 JUNE 2016

USD 387 million (AED 1,422 million) 2017 sukuk matures next year, and was, at the time, the largest and first 10 year sukuk done in the region. Similarly, the current tender offer is the first of its kind for the region. The money raised from the new sukuk sale will fund the tender offer along with general corporate purposes. The new sukuk will keep the dual listing on the London Stock Exchange reflecting the same listing arrangements as the old issuance, in line with the tender offer.

Expo 2020 Dubai has announced Emirates Airline as its Official Airline Partner. The partnership, signed by His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group, and Her Excellency Reem Al Hashimy, UAE Minister of State for International Co-operation and Director General Bureau Expo Dubai 2020, links Emirates, one of the world’s largest international airlines, with the Expo, which will be one of the most-visited global mega events of 2020. Under the terms of the partnership, Emirates will be a licensed ticket reseller. Emirates’ extensive route network to over 150 destinations means that it is uniquely well placed to support Expo 2020 Dubai in attracting 25 million visitors, 70% of whom are expected to travel internationally. Expo 2020’s Premier Partnership with Emirates Airline is the highest of three tiers of partnerships that they will be entering into. The agreement grants exclusive rights and benefits for Emirates Airline, and other businesses within the Emirates Group, including branding and marketing rights.


Proclad to invest AED 500 million in National Industries Park CISCO awards CloudHPT as the master cloud and managed services partner of the year CloudHPT has been awarded the prestigious ‘Cisco Master Cloud & Managed Services Partner of the Year Award’ at Cisco’s UAE Partner Summit, which was attended by over 200 partners, delegates including CXOs, and senior technical professionals last month. This award recognises the company that uses best-in-class practices, and serves as a model to the rest of the industry. Areas of consideration include their innovative practices and process, architecture-led approach successes, and strategic business focus that result in customer success. The Master Cloud & Managed Services Partner of the Year Award recognised CloudHPT as the first and only partner to achieve Master Cloud and Managed Services Certification in the UAE, with record performance in Q1 2016.

National Industries Park (NIP) and Proclad have signed an agreement to invest and develop plots in the National Industries Park to a tune of approximately AED 500 million (USD 136122960) and develop 1.5 Million square feet. of industrial area, specialising in products and services related to the Oil and Gas Industry. Proclad currently owns four factories in the same Park, which cater to a niche market for Corrosion Resistant Alloy

(CRA) products, solutions and services. It plans to make the National Industries Park as its world-wide hub for its specialised manufactured products to serve the global Oil and Gas market, covering the UAE, GCC, MENA Region, CIS Countries, North and South America, West Africa and Southeast Asia. Proclad is planning further investment in National Industries Park by establishing new factories once the two Phases are fully operational.

JUNE 2016 7


Ooredoo ranked in top 10 of region’s most valuable brands

The design of Ile de France’s future metro is unveiled Alstom’s headquarters in Saint-Ouen was the place where the design and internal layout of the future trainsets of the rubber-tyred metro MP14, scheduled to enter circulation in Ilede-France from 2019, was unveiled by Henri Poupart-Lafarge, Alstom Chairman and CEO, Valérie Pécresse, President of the Regional Council of Ilede-France and Council President of the STIF, Elisabeth Borne, Chief Executive Officer of the RATP, Philippe Yvin, Chair of the Executive Board of the Société du Grand Paris (SGP), Stéphane Beaudet, Vice President for Transport of the Ilede-France region and Vice-President of the STIF, as well as Laurent Probst, Managing Director of the STIF.

8 JUNE 2016

Resulting from the collaboration between the STIF, the RATP and the SGP, the design of the MP14 metro offers streamlined contours, a distinctive light signature and visual consistency with the platform doors inside the stations. The metro respects the platform design defined by the STIF for all the rolling stock in Ilede-France, and its livery will bear the colours of the STIF and the RATP. The internal layout, designed to improve the journeys of the passengers, has been developed along the theme of the alcove to create both conviviality and privacy. MP14 also offers a complete on-board video-protection and dynamic information system.

Ooredoo has been ranked in the top 10 most valuable brands in the MENA region for the first time, according to a new study, following a successful year that has seen the company raise its profile around the world. In securing its position, Ooredoo is one of three leading Qatari brands in the top ten, and among the strongest communications brands ranked in the rating. The ‘Brand Finance Middle East 50’ report is created by leading intangible asset valuation consultancy Brand Finance, which ranks the most valuable Middle Eastern brands every year. According to the report, Ooredoo’s Shaikh Saud Group CEO Ooredo brand value has consistently increased since the company began its global brand roll-out in February 2013. During these three years, Ooredoo has seen a 169 per cent increase in its estimated brand value, which the report calculates at USD 2.1 billion (AED 7.7 billion) in 2016. The report also notes that, with its AA+ brand rating, Ooredoo is the strongest telecoms brand in the region. The report states that the company is one of the most valuable communications brands in the Middle East today, and could rank higher in the future as Ooredoo continues to build its customer base and reinforce its brand. Ooredoo’s global customer base reached 118 million by the end of March 2016.


Pictured flanked by Etihad Airways First Class lounge staff are, from left: Shane O’Hare, Etihad Airways Senior Vice President Marketing; Mohammed Al Katheeri, Acting Chief Operations Officer of Abu Dhabi Airports; Peter Baumgartner, Etihad Airways Chief Executive Officer; and Khaled Almehairbi, Etihad Airways Senior Vice President Abu Dhabi Airport Operations, celebrating the opening of the new First Class lounge at Abu Dhabi International Airport.

Etihad opens world-leading Abu Dhabi First Class lounge and spa Etihad Airways has officially opened its new flagship First Class Lounge & Spa at Abu Dhabi International Airport’s Terminal 3. The spectacular new space showcases the airline’s commitment to providing unparalleled and aspirational hospitality experiences. Inspired by the world’s most prestigious hotels, private members’ clubs and fine dining establishments, the lounge is an ultraexclusive lifestyle environment, which tells the airline’s acclaimed guest experience and hospitality story with unrivalled design, style

and comfort, world class dining, and bespoke beauty and relaxation services. The lounge features 16 unique zones designed to ensure that guests can relax, re-energise and be entertained in total luxury before boarding their flight. An à la carte restaurant, showcase bar, fitness room, cigar lounge, Six Senses Spa, Style & Shave barbers, nail bar, TV room, secluded relaxation room, prayer room and children’s play room ensure that all guests receive a highly personalised experience and intuitive service.

Aviation leaders gathering in Dublin The International Air Transport Association (IATA) announced that leaders of the global air transport industry are gathering in Dublin, Ireland, for the Association’s 72nd Annual General Meeting (AGM) and World Air Transport Summit. The AGM will open with keynote addresses by Shane Ross TD, Ireland’s Minister for Transport, Tourism and Sport, and Dr Olumuyiwa Benard Aliu, President of the Council of the International Civil Aviation Organization (ICAO). A highlight of the World Air Transport Summit will be a panel discussion on the industry’s top issues featuring Bernard Gustin, CEO, Brussels Airlines; Ed Bastian, CEO, Delta Air Lines; Sir Tim Clark, President, Emirates Airline; Jayne Hrdlicka, CEO, Jetstar Group; and Charamporn Jotikasthira, President of Thai Airways. The discussion will be moderated by CNN’s Richard Quest. Summit panel discussions will also focus on sustainability and cyber security, with Alan Joyce, CEO, Qantas, among panel participants. Nearly 1,000 delegates are expected to participate in the event being hosted by Aer Lingus at the Royal Dublin Society. IATA also released demand growth results for global air freight markets for April 2016, showing a 3.2 per cent increase in demand measured in freight tonne kilometres (FTKs) compared to the same period last year. Yields remained pressured as April freight capacity increased by 6.6 per cent year-on-year. The strongest growth occurred in the Middle East and Europe, with April demand up by 7.7 per cent and 6.8 per cent, respectively, compared to the same period last year.

JUNE 2016 9


NAFL links with top global universities using FIATA’s e-platform The National Association of Freight and Logistics (NAFL) held an open Forum on FIATA Logistics Academy (FLA) last month at Le Meridian Airport Hotel, Dubai, to give out distinction certificates to their top trainees, who got 95 per cent and above from various freight organisations. Further, the new schedule for the coaching and management courses were announced. This e-learning platform is not limited to logistics courses, but has leadership, management, business etiquette, and much more. The Forum highlighted how FIATA Logistics Academy (FLA) has moved towards fulfilling its mission to add value to FIATA members by positioning training, development, and research in freight logistics as a Nadia Abdul Aziz priority FIATA deliverable. The event discussed scores of other courses, and was the perfect platform to exchange knowledge and skills for professionals, graduates and leaders who want to enhance their employee knowledge.

10 JUNE 2016

Gartner announces rankings of the 2016 Supply Chain Top 25 Gartner, Inc has released the findings from its annual Supply Chain Top 25, identifying supply chain leaders and highlighting their best practices. Analysts announced the findings at the Gartner Supply Chain Executive Conference, held at the JW Marriott Desert Ridge Resort and Spa in Phoenix, AZ. For the first time, Unilever topped the ranking, followed by McDonald’s, Amazon, Intel and a newcomer to the top five, H&M. Five new companies made the Supply Chain Top 25 this year, with Schneider Electric, BASF and BMW joining the list for the first time, and HP and GlaxoSmithKline rejoining after several years. Apple and P&G continued to qualify for the Masters category, which Gartner introduced in 2015, to recognise sustained supply chain leadership over the last 10 years. While this category is separate from the overall Supply Chain Top 25 list, these companies continue to be evaluated as part of Gartner’s annual research study.


Jafza celebrates 30th anniversary at annual gathering Jebel Ali Free Zone (Jafza) recently celebrated its 30th anniversary at its Annual Gathering with customers and partners at Port Rashid. The celebrations were attended by Dubai government officials, including Abdulrahman Al Saleh, Director General - Dubai Finance Department, Jamal Majid Bin Thaniah, ViceChairman, DP World, and Ahmad Mahboob, Director of Dubai Customs. Bin Sulayem related the challenges that the founders of Jafza faced in setting up the free zone and the support they received from customers in turning it into a major success story and one of the leading business hubs in the region. He said that the strategic vision of Jafza was to attract foreign investment to Dubai in line with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, VicePresident and Prime Minister of the UAE and Ruler of Dubai, to diversify Dubai’s economy from oil and add value to the national economy. He also emphasised the significance of the construction boom witnessed by Dubai in the 1990s in the evolution of the free zone. He noted the key role of Jebel Ali Port at the heart of the free zone contributing to the growth of Dubai’s economy encouraging the development of other specialised free zones across business sectors over the last three decades. Jafza has promoted trade between Dubai and global markets generating economic growth for the Emirate and providing employment. It contributes more than 21 per cent of Dubai’s

GDP and enables a quarter of non-oil trade (by volume). In 2015, Jafza’s total trade amounted to more than AED 321 billion attracting 32 per cent of total foreign investment into the UAE. Looking forward, Bin Sulayem unveiled a string of new projects that will continue to

position Jafza as one of the world’s leading free zones, attracting leading businesses from around the world. These include multi-storey warehouses, multi-storey car storage, light industrial units/warehouses, onsite residences, and customised development solutions.

JUNE 2016 11


Abu Dhabi Airports wins ‘Procurement Team of the Year’ Abu Dhabi Airports’Procurement department has been named the Middle East’s“Procurement Team of theYear”by the Chartered Institute of Procurement and Supply (CIPS), at the Middle East Supply Management Awards 2016. The award is regarded as a standard of excellence, and is amongst the most prestigious recognitions the procurement and supply

chain arm of an organisation can receive. The CIPS award validates the outstanding work carried out by Abu Dhabi Airports’Procurement team, and the role it has played in the delivery of procurement and supply services for the Midfield Terminal Building (MTB). Several aspects of the Procurement department’s high performance were highlighted to the

judges. The team has reduced cycle times by half by anticipating the organisation’s needs, implemented an e-Sourcing system that has made tendering activities 95 per cent paperless, and made use of business intelligence allowing staff performance to be measured against KPIs, all of which have been effective in realising significant cost savings.

Jet Airways group declares record annual profit Jet Airways Group has declared a highest ever annual profit in its history for the year that ended March 31, 2016, and thereby achieved return to profitability a year earlier than the target set in its turnaround plan two years ago. The consistently strong financial performance has enabled Jet Airways to reduce its debt by USD 256 million (AED 940 million) during FY16. Cost per available seat kilometre (CASK), excluding fuel, dropped by 3.2 per cent in FY16, clearly indicating Jet Airways’ success in achieving operational efficiencies throughout its business. For Q4 of FY16, the company reported a net profit of USD 63 million, compared to a loss of USD 291 million (AED 1,069 million) for the same period last year. It marks the company’s fourth straight quarter of profitability.

12 JUNE 2016

Sita delivers strong business results SITA has announced 2015 revenues of USD 1.7 billion (AED 6.2 billion) despite a year that saw continued global economic and geopolitical volatility, as well as significant shifts in currency. The consolidated group revenue, based on constant currency rates, rose 3.2 per cent from 2014, as the organisation continued on its growth trajectory. The results, confirmed at SITA’s Annual General Assembly (AGA), highlight the company’s continued solid business performance and growth. The revenues were enhanced by a sound cash balance, near zero debt, and a strong SITA Group net margin, which was 10 per cent higher than the previous year. In addition, highly favourable customer feedback and loyalty scores, and a strong result on the newly introduced Community Value Index is a testament to the focus SITA places on its community and customers.


H.E Eng. Suhail Mohamed Faraj Al Mazrouei and ENEC Senior Leadership at Barakah Nuclear Energy Plant

ENEC CEO provides update to H.E. Suhail Mohamed Faraj Al Mazrouei

Energy Minister discusses ENEC’s Barakah Nuclear Energy Plant

Renewable Energy Employs 8.1 Million People Worldwide, Says New IRENA Report

UAE Energy Minister visits Barakah Nuclear Energy Plant His Excellency Eng Suhail Mohamed Faraj Al Mazrouei, UAE Minister of Energy, was hosted by ENEC’s CEO, Mohamed Al Hammadi and other senior management, during a visit to the Barakah Nuclear Energy Plant this week. The Minister received an update on the project, as well as details of a recent construction milestone at the plant from senior Emirati engineers.

The completion of major electrical installation work at Unit 1 represents another milestone in the continued progress from construction to commissioning of the plant at Barakah. Teams from ENEC and its prime contractor the Korean Electric Power Corporation (KEPCO) have now completed installation of the last piece of major electrical equipment at Unit 1.

Energy Minister, ENEC senior management and Energy Pioneers

More than 8.1 million people worldwide are now employed by the renewable energy industry – a five per cent increase from last year – according to a report released by the International Renewable Energy Agency (IRENA) at its 11th Council meeting. The report, Renewable Energy and Jobs – Annual Review 2016, also provides a global estimate of the number of jobs supported by large hydropower, with a conservative estimate of an additional 1.3 million direct jobs worldwide. “The continued job growth in the renewable energy sector is significant because it stands in contrast to trends across the energy sector,” said IRENA Director-General Adnan Z. Amin, adding, “This increase is being driven by declining renewable energy technology costs and enabling policy frameworks. We expect this trend to continue as the business case for renewables strengthens and as countries move to achieve their climate targets agreed in Paris. As the ongoing energy transition accelerates, growth in renewable energy employment will remain strong. IRENA’s research estimates that doubling the share of renewable energy in the global energy mix by 2030 – enough to meet global climate and development targets – would result in more than 24 million jobs worldwide.”

JUNE 2016 13


Dubai Customs shares its AEO implementation experience during global conference

Ahmed Mahboob Musabih taking part at one of the conference’s leading panel sessions.

A high profile delegation from Dubai Customs took part in the WCO 3rd Global AEO Conference, held recently in Cancun, Mexico. Dubai Customs Director, Ahmed Mahboob Musabih, was a panellist on the first day plenary session of the conference,

where he presented the UAE’s state-of-theart Authorised Economic Operator (AEO) programme, of which Dubai is the pilot. The Executive Director of Clients Management Division, Abdullah Al Khaja and Director of Customs Declaration Management, Eman

Ahmed Mahboob Musabih speaking at the conference

Bader Al Suwaidi were also present among Dubai Customs’ delegates. Dubai Customs has concluded the design of the first pilot launch phase for the AEO Programme in a bid to achieve the fully operational state by mid-2016, in accordance with the SAFE Framework of Standards to Secure and Facilitate Global Trade, which is globally recognised as the (SAFE Framework). He asserted that the would-be implemented AEO programme will give strong impetus to the nation’s global trade position, ahead of the looming post-oil economy era.

Retail Cross-Border Expansion is Rising in the Top 50 Global Cities One-third of the top 15 global retail cities are located in the Middle East, according to JLL’s Destination Retail report, which looks at the leading cities worldwide for retailing. The report shows 50 major global cities have risen to the top of the list for mainstream, premium and luxury retailers’ expansions. While the list is dominated by cities in Asia Pacific, those in the Middle East are coming on strong, propelled by an ever-increasing array of international retailers with Dubai and Kuwait City falling within the top 10 destinations globally. Abu Dhabi finished just out of the 10 at number 11,

Jeddah

14 JUNE 2016

are emerging as business and travel while Jeddah and Riyadh hubs, and are increasingly catching tied for 12. the eye of global retail brands. The JLL’s report examines acceleration of international brand the presence of 240 expansion across the world’s best international retail brands and most attractive cities in the and 140 international cities, next decade will continue, driven by including the drivers of fast-growing middle classes, new their growth, opportunity powerhouse economies and rising and barriers, and also ranks Andrew Williamson tourism. Retailers who succeed in and assesses the vitality acquiring the right space and at and attractiveness of cities. the right time are expected to benefit from The Middle East’s top cities, including Dubai, successful and profitable growth. Kuwait City, Abu Dhabi, Jeddah and Riyadh

Riyadh

Dubai


ONLY THE BEST IS GOOD ENOUGH

STEAM CLEANERS

RIDE ON SCRUBBER DRIERS

COLD PRESSURE WASHERS

OUTDOOR SWEEPERS

HOT PRESSURE WASHERS

WALK BEHIND SCRUBBER DRIERS

For any cleaning challenge, we have a solution. We understand the demands of your business, whatever industry you operate in.

For more information, Please visit www.karcher.ae or call us on Tel: +971 4 886 1177


COUNTRY REPORT - SAUDI ARABIA

s d n a p x e a i b a r audi A

s t r o p its

S

he ting in t rder s e v in is o rnment of its ports in al e v o g i n s ud The Sa n and upgrade l and internatio of a is io expans par with region shipping lines t r es n to be o e trend of majo with all the lat h ts ports. T g at large por government has announced plans to audi Arabia’s ports are some of llin the biggest in the region, and the only ca ence the need e invest $30bn in upgrading facilities to h enable the Kingdom’s ports to compete on Kingdom’s combined throughput ad facilities untry to upgr the global stage. of 194m tonnes per year co As one of the world’s largest exporters (excluding crude oil) is the largest for the s ie it of primary products, the Kingdom has an volume in the Middle East. However, with il c a its f

S

the international trend in shipping moving towards consolidation at ever larger ports (and with ever larger container ships), the

16 JUNE 2016

extensive network of ports on its Red Sea and Gulf coasts. However, with the exception of Jeddah Islamic Port (JIP) on the Red Sea coast


COUNTRY REPORT - SAUDI ARABIA

Port view of Ras Tanura, Saudi Arabia

and Dammam on the Gulf, most of these ports primarily serve either industrial or bulk cargo purposes. This bias towards primary products is reflected in the Kingdom’s total throughput capacity, which in 2014 reached 532m tonnes per year. By contrast, in 2013 the World Bank recorded Saudi ports’ throughput in twenty-foot equivalent units (TEUs) – the medium via which the majority

of the world’s consumer goods is transported – to be only 6.7m TEUs.

A new port With the world’s major shipping lines currently consolidating into a few large alliances, and limiting their ports of call to only the largest and most technologically advanced facilities, the Saudi authorities have in recent

years looked to invest in boosting capacity at the Kingdom’s main hub, JIP. In particular, the $510m Red Sea Gateway Terminal, which opened in 2009, added an additional 1.8m TEUs of capacity to the port, bringing total capacity (including the preexisting north and south terminals) to 5m TEUs. Given the future requirements of the Saudi economy, the government believes there is

JUNE 2016 17


room for another major container port on the Red Sea, alongside JIP. The King Abdullah Economic City (KAEC), which has been under development since 2005, is located some 100 km north of Jeddah, and is hoped to eventually play host to 2m residents. It will be linked to Jeddah (and Makkah and Medina) by the Haramain HighSpeed Rail Project, currently under construction. If plans come to fruition, it will also house one of the region’s largest container ports, King Abdullah Port.

Private finance King Abdullah Port, which is the first port in Saudi Arabia to be entirely privately owned and financed, has been under development for several years. DP World, the UAE stateowned operator of Jebel Ali Port in Dubai, had expressed initial interest in the port, signing a memorandum of understanding with KAEC’s developer, Emaar Economic City (EEC), in 2008 to develop and operate the facility. Ultimately, however, EEC went ahead with a local partner, the Saudi Binladin Group, forming a joint venture in 2009 – the Ports Development Company – to develop King Abdullah Port. A separate agreement was then made with National Container Terminal (NCT) to operate the first terminal at King Abdullah Port. NCT, a Saudi company associated with International Port Managers and National Port Services, part of Nesma Holding Group, took control of the official terminal operator building in the port from the Ports Development Company in October 2014. Operations at the port, however, had already begun at the beginning of the year, when EEC announced that phase 1a, a 1.3mTEU container facility, was ready to receive ships. The first phase of development at King Abdullah Port reportedly involved investment of SR2.5bn ($666.3m), entirely raised from the private sector. According to EEC, additional stages in the port’s development will bring total investment to SR9bn ($2.4bn) by 2018, and will see capacity rise to 4m TEUs by 2016 and 7m TEUs by 2018. Current capacity of the port is 3m TEUs and it has four 18-metre-deep operational berths. EEC claimed that,

King Abdullah Port, which is the first port in Saudi Arabia to be entirely privately owned and financed, has been under development for several years. DP World, the UAE state-owned operator of Jebel Ali Port in Dubai, had expressed initial interest in the port eventually, King Abdullah Port will reach an annual throughput of 20m TEUs, which would make the port comparable in size to Dubai’s Jebel Ali (whose terminal 3 expansion will bring capacity to 19m TEUs) – currently the region’s largest shipping hub.

Red Sea hub Indeed, there are currently many boosters for King Abdullah Port who argue that the Red Sea represents a more natural hub for regional shipping than the Gulf – albeit one which has been historically under-utilised. Speaking in an interview on the sidelines of the World Economic Forum in Davos in 2014, Fahd Al Rasheed, CEO of EEC, noted,“25% of global trade goes through the Red Sea, but we’ve never leveraged it in the region.” Similarly, speaking at the Saudi Maritime Congress in December 2014, Hassan Abouraya, risk management executive at Zamil Offshore Services, a Saudi-based shipping services company, observed that, while more than 25,000 merchant vessels plied the Red Sea route,“Only two old repair yards with limited docking capabilities are available in Jeddah and Suez – there is room for at least one worldclass ship repair yard to be built.”

In particular, the

$510 million

Red Sea Gateway Terminal, which opened in

2009

18 JUNE 2016

Strategic position The strategic position of King Abdullah Port on the Red Sea trade route has been the key spur to investment – particularly given the initial absence of guarantees from major global shipping lines that they would serve it. Planners estimated that the port’s position could shave over a week off East-West trans-shipment along the Asia-Europe trunk line, and the Economic Cities Authority – the government body that regulates KAEC, where King Abdullah Port is hosted – helped facilitate the port’s potential by creating a bonded zone allowing for Customs-free movement of goods. EEC’s efforts appear to already have paid off, with King Abdullah Port welcoming the largest ever container ship to dock in a Saudi port in September 2014, when the Mediterranean Shipping Company’s (MCS) 16,500-TEU-capacity MSC London docked at the terminal. MSC forms part of the recently agreed“2M” vessel-sharing alliance, which also includes Maersk. Alongside the“Ocean 3”alliance between French CMA CGM, China Shipping Container Lines and United Arab Shipping Company, the two groups account for the lion’s share of global East-West shipping. According to industry reports, the emergence of King Abdullah Port 100 km to the north of JIP could prompt heated competition between the two Red Sea ports, with JIP in danger of being left with business from the smaller alliances CKYHE and G6. Others argue that the relocation of these lines’ ports of call could be a temporary bargaining tactic to drive down handling costs. Either way, the competition from King Abdullah Port seems to have prompted JIP to action, with Sahir Tahlawi, director-general of JIP, announcing in February 2015 that concessions for its north and south container terminals will be retendered in 2017. Terms of trade aside, the main difference between the two ports is that JIP was constructed using government money, and remains wholly owned by the state. The decision to tender operation and management contracts to the private sector was made by the Saudi Ports Authority in 1997. King Abdullah Port, by contrast, was financed from the start by private capital, and its owners must cover the cost of capital. www.oxfordbusinessgroup.com


COUNTRY REPORT - SAUDI ARABIA

Investing in the transport sector Since the global slowdown of 2008, the Saudi authorities have committed huge sums in infrastructure spending to spur demand in the economy. The government’s strategy has focused on improving transport infrastructure, with unprecedented levels of investment in rail, aviation and port facilities

W

ith oil prices falling, the government is once more stepping in with spending to boost the economy, and a fresh round of investment in transport is in the offing.

in ports and sea transport, and around $23bn in aviation, bringing total investment in the transport sector through 2025 to an anticipated $190bn.

Growing numbers With so much money under investment, keeping track of the rolling total can be difficult. However, industry sources quoted through Saudi Logitrans, a transport, logistics and freight exhibition based in Riyadh, estimated the current total of announced projects to be $81.6bn. This figure would suggest there remains over $100bn of investments to be made in the transport sector in the coming decade; if spread out on an annual basis, this would represent a boost of around 1.3% of GDP per year. As a share of GDP, the Saudi transport sector accounts for 2% of economic activity as per 2012 figures; by contrast, in Turkey the transport sector accounts for 6.3% of GDP. None of the Kingdom’s cities currently features public transport beyond basic bus networks (with the partial exception of the recently completed pilgrim railway in Makkah), while rail density is 0.05 km per 1000 population, as compared to 0.72 in the US. SAGIA estimates the current round of spending on rail projects will raise this figure to 0.2, contributing an additional $86bn to the economy.

A slew of projects

Vital investment

According to government sources, the transport sector is currently the target of some $141bn of investment in rail and public transport alone, with an estimated $90bn of spending forecast on capital investment and $51bn on operating expenditure. The money is set to be allocated across a total of 14 different projects, with three large projects – the north-south railway, the Haramain High Speed Rail Project and the Riyadh metro – already under construction. Combined investment on just these three projects is expected to reach $42.9bn. These initial projects represent just the tip of the iceberg, however. By 2025 another four citywide metro systems will be built (including Jeddah, Makkah, Medina and Dammam) with a total investment of around $64.9bn, while a further $14.4bn is to be invested in inter-city rail lines and $8.7bn in bus projects. Beyond these investments in multimodal land transport, the Saudi Arabian General Investment Authority (SAGIA) anticipates a further $28bn of investment

Moreover, when the Kingdom’s transport sector is weighed against international benchmarks, it is equally clear such investment is necessary. SAGIA estimates that the current GDP share of transport is 50% what it should

below

JUNE 2016 19


be, while employment in the sector (0.9% of total) is some 40% below benchmarks. SAGIA has identified the rail sector in particular – 30% below benchmarks and ranked 47th by the World Economic Forum in its 2013 infrastructure survey – as having

20 JUNE 2016

the greatest potential for high-impact investment. Indeed, the Saudi government’s current plans for the railway sector amount more or less to the creation of an entire national network from scratch. Two national


COUNTRY REPORT - SAUDI ARABIA

railway companies were created to share responsibility for overseeing the works: the Saudi Railway Company (SAR) and the Saudi Railways Organisation (SRO). Each is currently working on a flagship project: in the case of SAR, the 2750-km north-south

Makkah and Medina via Jeddah and the currently under construction King Abdullah Economic City). The combined investment in these two projects is roughly $20bn. A third project yet to begin construction is the Saudi Landbridge, which aims to connect Jeddah with Riyadh, from where – thanks to existing lines operated by SRO which are soon to be upgraded (including a high-speed link) As a share of – passengers and freight will be able to GDP, the Saudi reach Dammam on transport sector the Gulf coast. The estimated accounts for cost of this 950-km 2% of economic railway is in the region of $7bn, and activity as per construction will be 2012 figures; by supervised by SAR. contrast, in Turkey Project management consultancy contracts the transport have already been to Fluor sector accounts awarded Corporation and for 6.3% of GDP. Parsons Brinckerhoff, and pre-qualification None of the recently began for Kingdom’s cities the construction supervision currently features contract.“The Saudi public transport Landbridge Project is set to connect beyond basic bus the Jeddah Islamic Port (JIP) with two networks stations. This railway will ease the traffic of containers and increase trade flows,”Sahir Tahlawi, director-general of JIP, told OBG. Once this initial spine of the Kingdom’s railway infrastructure has been completed, the government’s strategy calls for additional investment in two further phases – 202633 and 2033-40 – to bring the Kingdom’s King Khalid airport, Riyadh, Saudi Arabia total track to 9900 km. These additional projects will take the form of extensions along the Red Sea coast further north and south, reaching Duba and Jazan, while spurs railway (which will run from Riyadh to Al from Medina will link that city with Hail Haditha on the Jordanian border, with a spur and Buraydah. There are also plans to build connecting the bauxite mines of Al Zabira a railway link to Bahrain for $5bn, as well with Ras Al Khair on the Gulf coast); and as the Saudi tranche of the GCC railway in the case of SRO, the 450-km Haramain ($1.5bn). High-Speed Rail Project (which will connect

JUNE 2016 21


COUNTRY REPORT - SAUDI ARABIA

King Fahd Causeway which connects Saudi Arabia and Bahrain

Private sector steps in All of the Kingdom’s current railway projects are being fully funded by the government, with private sector participation through tendering followed by limited-term operation and management (O&M) concessions once facilities have been completed. The authorities had previously hoped to fund some of the current infrastructure drive through public-private partnerships (PPPs). The Saudi Landbridge in particular was considered as a flagship for this approach, with the Tarabot consortium initially selected in 2008 as the preferred bidder among a shortlist of four. The PPP contract would have consisted of a 50-year build, own, operate, transfer concession; however, following the global financial crisis industry insiders suggested the consortium was no longer willing to take on the risks of such a substantial project. Thus, in 2011 the project was resurrected under the auspices of the government owned SAR, and will proceed along the same lines as the Haramain and north-south railways. Thus far the only project in the transport sector to be financed through the PPP model is Prince Mohammad bin Abdulaziz International Airport in Medina, which has recently been completed by a consortium composed of Turkey’s TAV Airports and two Saudi Arabian companies, Saudi Oger and

22 JUNE 2016

Al Rajhi Holding Group. Three lenders – National Commercial Bank, Arab National Bank and Saudi British Bank – provided a total of $1.2bn in funding for the project, which has been implemented through a build, transfer and operate model. This variant of the more established build, operate and transfer model will enable the General Civil Aviation Authority (GACA) to maintain ownership of the infrastructure, while the consortium will take on passenger demand risk and share revenues.

Financing schemes Following the successful conclusion of negotiations for the Medina airport, GACA announced in May 2014 that it would be pursuing a similar model to finance a new international airport in the city of Taif, near Makkah. GACA is currently working with the International Financial Corporation, the private sector arm of the World Bank, to prepare the tender process for a build, finance, operation, maintenance and transfer contract, which it hopes to award during 2015. Given the Kingdom’s more extensive experience with the aviation sector, airports represent a natural starting point for PPP investments, enabling private investors to better judge the demand risks involved in financing such projects. Nonetheless, the Saudi authorities are hoping that the major

capital investments they are currently making in the rail sector can be leveraged further, and encourage economic diversification through localisation programmes.

Local focus Chief amongst these is a plan for some $30bn of component manufacturing for the Kingdom’s various train and metro programmes. SAGIA has identified nine components that it believes offer the greatest potential for local production, and is keen to attract global investors willing to partner with Saudi businesses in helping the local components industry progress up the value chain. Speaking at the two-day GCC Rail and Metro Conference, held in Oman in January 2015, Mohamed Khaled Al Suwaiket, the general president of SRO, called for a Gulf-wide initiative in the component sector. One option discussed by Al Suwaiket would entail the establishment of a common integrated localised manufacturing unit for the procurement of the main components, with Gulf states committing to the services and products of that unit. Whatever the specifics, there can be little doubt that with so much capital under investment, the authorities have a major opportunity to promote knowledge transfer to local companies and workers. -www.oxfordbusinessgroup.com


                 

                                                                                                                                              


COVER STORY

The talent

dilemma

24 JUNE 2016

Around the world, populations are ageing. In developing economies, transportation and logistics as a sector is growing rapidly – but workforce development isn’t yet keeping pace. How will transportation and logistics companies cope? We have an excerpt from PwC’s report titled Transportation & Logistics 2030: Winning the Talent Race


COVER STORY

JUNE 2016 25


COVER STORY

26 JUNE 2016


COVER STORY

I

t’s a question with strategic implications for every aspect of the business. That’s why the first step needs to be making sure that human resource (HR) management is a strategic partner of the C-suite, rather than a supporting function. The next order of business will be addressing the image problem. The logistics’ sector’s poor image came up again and again in the responses from our Delphi panellists, regardless of the question asked. Transportation and logistics as a sector isn’t viewed as attractive by most job seekers – when it’s considered at all. Many transport jobs are considered to be low-paying dead-ends. Higher skilled logistics roles with good pay and advancement potential don’t even make the radar screen of many talented graduates. The problem is compounded by a dearth of training programmes in many areas and an insufficient focus on learning and development within individual companies. There’s no doubt that investments will be needed. Logistics companies in emerging countries need to invest heavily in training, development and education for their young joining workforce. In developed countries, training the next generation and adapting the workplace to the needs of older employees will be key.

Attracting more women to the male-dominated transportation and logistics sector won’t be easy, but companies that succeed will have access to a rich new labour pool. Gender and cultural diversity can pay off in other ways too

Improving recruiting efforts will be important all over the world. Small and medium-sized enterprises (SMEs) have the toughest time – but establishing alliances with their peers and taking advantage of new opportunities provided by virtual recruiting methods can help them catch up. Attracting more women to the maledominated transportation and logistics sector won’t be easy, but companies that succeed will have access to a rich new labour pool. Gender and cultural diversity can pay off in other ways too, for example by sparking creativity and enhancing innovation. Our Delphi experts believe that diversity management will continue to be a marginal issue in transportation and logistics. And companies that make sure to include women in top roles may find that profits increase too. Companies across the board will need to get compensation levels right for both men and women – and that includes more than just wages. Benefits and working conditions will be important too. Also, individual objectives of employees should be aligned with the overall corporate strategy. That increases productivity and helps workers feel they have a share in the organisation’s success – an important factor when it comes to keeping talent on-board. Enhancing opportunities for advancement and improving working conditions are vital too. By making sure current workers are satisfied, companies can improve their employer brand. While staff perceptions aren’t the only factor in building an employer brand, they are an important element. Corporate responsibility helps too, especially in reaching out to younger workers. The strength of the company brand can also go a long way towards helping an individual organisation overcome the sector’s negative image.

Demographics Demographic changes pose a dramatic threat to the business models of many transportation and logistics companies. It remains to be seen if the industry can cope and attract a skilled workforce. In 2030, over 8 billion people will live on earth. That’s around a billion more than in 2010, and 95% of this increased population will be born in developing and emerging markets.1 It’s not news that more developed

MAY 2016 27


COVER STORY

countries will make up a smaller percentage of the world’s inhabitants. For more than 50 years, developing countries’ population growth has outpaced that of Europe in particular. In fact, by 2030 only 23% of the world’s population will live in Europe, North America and Australia. The global economy is being re-shaped, and so is the distribution of wealth. And as world trade grows, so do the challenges for the transportation and logistics industry. More people means more production. Global trade in goods and services is likely to rise more than threefold to US$ 27 trillion in 2030. That’s putting pressure on the industry to keep goods flowing. In 2010, drivers already belonged to the top 10 jobs that employers are having difficulty filling among 36 countries worldwide. Growing populations mean an increased need for logistics in emerging economies It might seem that with so many people being added to the workforce, most emerging economies shouldn’t have any issues with labour shortages. Not so. Many of the countries that will be home to ‘the next billion’ will need to invest in healthcare and

28 JUNE 2016

education. By 2030, 100 million school-aged children and teens between 5 and 19 will live in emerging markets. To compete in a global economy, most will need a better education than they can now find locally. In many countries, economic growth is already significantly outpacing talent development, leading to serious skills shortages. Transportation and logistics companies in developing countries will need to pick up the slack. That will mean providing in-house training and skills development programmes. Take India. According to the National Skill Development Organisation of India, the transportation and logistics sector employed around 7.3 million people in 2011. But the number is expected to increase to about 25 million by 2022. Transportation and logistics companies will need to find more than 17 million more workers over the next 10 years. That’s an enormous challenge, particularly considering that the logistics sector is already struggling to find workers with the requisite skills to handle the entire supply chain. Companies that plan to expand in fast-growing emerging markets, whether domestic or international, will need to have

By making sure current workers are satisfied, companies can improve their employer brand. While staff perceptions aren’t the only factor in building an employer brand, they are an important element

considerable success recruiting promising employees and developing them once they’re on board. And training programmes will also need to play a major role. The situation is similar in other emerging markets and the stakes are high. In South Africa, the shortage of skilled employees in the transportation and logistics industry is already stifling overall economic growth.

Ageing is having a major impact Population growth isn’t only happening because of high birth rates; in many places, people are living longer too. The world’s population is ageing as life expectancies rise. That’s true the world over. The older population is growing faster than the total population in practically all regions of the world – and the difference in growth rates is increasing. In general, the more developed countries are in a more advanced stage of demographic transition, as the baby boomer generation reaches retirement age. The exception is China. Due to its one-child policy, China is ageing at an extraordinary pace. In 2030, China’s population will be older than Europe’s. With a smaller percentage of the population working, transportation and logistics companies in developed countries will have a harder time employing workers with the needed skills, in the right place, at the right time. For some transport modes, there’s already a significant skills gap. The US trucking industry is a good example. In 2010, an estimated 400,000 more truck drivers were needed. The market for quality drivers is getting extremely tight and fleets are aggressively recruiting to fill their openings. And the situation is only going to get worse. The National Private


MAN ProfiDrive ̶ ®

the theoretical and practical solution to optimize a safe and economic driving style. Under MAN ProfiDrive®, you will find a comprehensive range of seminars: From initial vehicle introduction, an in-depth course on technology and safety systems, right up to economy training and driving safety training courses for both on road and off road applications. MAN offers practical seminars for commercial vehicle drivers that focus on the needs of the driver at the same time ensuring the needs of business owners are given the correct priority. For course booking, please contact your local dealer. www.man-middleeast.com


COVER STORY

Truck Council (NPTC) projects a growing wave of professional drivers exiting the workforce once the first baby-boomers begin turning 65 in 2012. Replacing them won’t be easy; the pool of 21 year olds eligible for a commercial driving licence isn’t keeping pace. The Council of Supply Chain Management Professionals estimates that the US trucking industry will need to hire 1 million new drivers in the next 15 years just to deal with replacing retirees and increasing levels of freight. Retiring workers and an ageing population will lead to shortages in other parts of the world too, like Germany and Australia. And in Europe, the percentage of employees nearing retirement age (i.e. currently 50-64) in the road transport sector is higher than the average percentage for other industry sectors. Canada is short on truck drivers too, but that’s not all. In recent years Canada has moved from a labour surplus to a deficit in every part of the transportation sector. On the other side of the globe, Australia is coping with an ageing workforce, rapidly changing transport technologies and increasing demand for more highly skilled workers. Freight levels are rising exponentially. In 2020, Australia will need to move twice as much freight as in 2006 – and by 2050, the amount of freight will have tripled. There are some transport modes where labour shortages are happening across the board, regardless of demographic changes or increases in local trade. For example, pilots and sailors are both in short supply, and the situation is likely to get worse. The Ocean Policy Research Foundation expects there will be an ‘up to 364,000 seafarer shortfall by 2050’.13 And in the aviation sector, Boeing’s long-term market outlook forecasts that ‘over the next 20 years, the world’s airlines will need to add 460,000 pilots and 650,000 maintenance technicians, both to fly and maintain the new airplanes and to replace current personnel who are due to retire during the period’. Sector’s negative image poses a big challenge So the experts aren’t sure how successful companies will be at retaining older workers. But how does the picture look overall? Do they think transportation and logistics companies will be successful enough in attracting a skilled workforce? Will companies have sufficient staff to manage

30 JUNE 2016

their business effectively in 2030? Again, our Delphi panellists are sceptical. Many experts pointed out that the transportation and logistics industry is already having trouble attracting young and skilled people. The reason they cite most often?

Image problems The experts also noted a number of other factors that are preventing the industry from attracting a sufficient pool of candidates, including low wages and less than optimal work environments. On the plus side, some experts believe that ongoing globalisation and increasing flows of goods will help boost the visibility of this sector. Some

panellists are hopeful that the increasing number of universities and postgraduate programmes focusing on logistics topics will also help fill the future gap. Making HR an executive priority As demographics and other factors change the market for human capital, addressing the talent challenge is tremendously important. And it’s increasingly becoming a C-suite issue. According to the EU HR Best Practice Report, a growing number of HR leaders report directly to the CEO.16 In 2011, the percentage jumped 9 points, from 65% in 2010 to 74% in 2011. When HR reports directly to the C-suite, it often signals the shift to a more strategic view of the importance of a company’s workforce.


COVER STORY

Office of the future

In one report on the practices of ‘Top Employers’ in Europe, 66% report that:“HR plays a crucial role in strategy formulation and operational success.” Will transportation and logistics companies also make HR a strategic partner of the C-Suite in the future? Our expert panel says not only will the transformation have been realised by 2030, it’s already happening now. We saw one sign of that among the CEOs who participated in our 15th Annual Global CEO Survey. 81% of T&L CEOs told us that the head of HR reports directly to them.18 In fact, there’s no alternative for companies that want to continue to thrive as labour becomes scarcer in all parts of the world.

Work space profoundly affects the physical, cognitive and emotional wellbeing of everyone in the organisation. Ideally the workplace should provide tools and settings to encourage formal and informal collaboration, freedom from distraction for work that requires concentration and most importantly: the ability to choose how you work That will mean changes to the workplace as it exists today. In the 1940s the term ‘office of the future’ described a vision of the paperless office – a prophecy that still hasn’t been fully realised. Researchers are exploring a wide variety of ways that our work environments will evolve and one thing seems certain: the office of the future will be digital and data-driven. It may be very personal too. Rooms that recognise who enters (either by using fingerprints or an individual’s unique scent) could adapt the individual working settings for a specific employee.19 Prototypes already exist. The ‘Hello. Wall’ developed by the IPSI-Institute is an ambient display that emits information via light patterns, a type of informative art. The wall is also able to recognise who is in the room and display relevant information transmitted through changing light patterns. Sensors track all employees’ movements and let employees know which co-workers are also available in a given area. The office of the future will also be a rich virtual space that helps make global collaboration an everyday reality. Research by the University of California is improving the everyday graphical display environment. The team is also developing 3D tele-immersion capabilities that create the illusion that employees in different parts of the world are actually together in a shared office space.21 Further development of that technology is a hologram table, using a combination of proprietary software and special lenses and lights, which will be able to render 3D-holograms of real-world objects. Teleconferencing suites will be equipped with software that translates languages simultaneously, expediting

chats among colleagues who don’t speak the same language. These developments should enhance productivity, but the wellbeing of individual employees also has a profound impact on how much gets done. That’s why the office of the future will also promote a much more active workstyle. Research shows that the long stretches of sitting that most people do every day, including at work, is a major contributing factor to obesity, a problem that’s growing around the world. 24 Finding ways to increase movement at work can have a significant impact. That could include furniture selected to encourage movement. Height-adjustable work surfaces will allow workers to do individual work in a standing or seated position, and special stand-up counters for group meetings will easily become settings for stretching exercises. ‘Active rooms’ will contain gym equipment, so that every employee can take short breaks to exercise.25 And more creative approaches will come into play too, like embedding inscriptions in the floor which encourage employees to jump or bounce rather than walking normally. The world in 2030 will be interconnected, global, and mobile. That calls for an interconnected, technologically advanced workplace that facilitates collaboration and nurtures worker well-being. Creating state-of-theart working environments will enhance company brand and culture. And they’ll play a critical role in attracting, developing and engaging talent. -Klaus-Dieter Ruske, Global Industry Leader Transportation & Logistics, PwC; Dr Peter Kauschke, Transportation & Logistics Programme 2030 Director, PwC; Dr Heiko A von der Gracht, Director, Institute for Futures Studies and Knowledge Management (IFK) EBS Business School, Germany; Julia Reuter, PwC and Dr Elizabeth Montgomery, PwC; compiled their findings in a PwC report titled Transportation & Logistics 2030: Winning the talent race. Used above is an excerpt from this comprehensive report.

JUNE 2016 31


MANAGEMENT

Exploring emotional intelligence 32 JUNE 2016


MANAGEMENT

Trends and developments force companies and organisations to rethink and refocus on how to attract and develop talent for the future. Industry 4.0 and emotional intelligence (EI) is paving the way for a different approach, Mareicke Walter-Paschkowski, Regional Manager, Middle East & Africa Region, Project Manager and Executive Coach at Logistics Executive explains

Mareicke Walter-Paschkowski

I

ndustry 4.0 seems to be the current buzzword in the economic world. This comes forth as a regular theme that was discussed when the top management of 350 of the biggest companies around the globe were interviewed by the World Economic Forum in order to analyse the impact of recent developments in industrial automation. This as-yet-unpublished study predicts that due to increasing use of automation and the proceeding digitisation of the working environment and processes, industrialised countries will lose five million jobs within the next five years. This will mainly affect jobs in offices or administrative positions with highly standardised duties, indicated by the fact that automation changes have already taken place in most factories and manufacturing plants. In contrast, the study predicts that only two million new jobs will be created, and the majority of these will require specialists in the areas of IT and technology. What we also see is that many companies still underestimate the importance of certain skills (ie, change management, project management, communication and conflict management), and it is essential to utilise this development in the best possible way. Businesses that are able to meet individual employee expectations will win the battle for talent in the future. A sustainable footprint is more than ever on the agenda for organisations, companies and individuals. Faced with developments such as climate change, shortage of natural resources, and a shifted awareness of clients and employees to more sustainable

JUNE 2016 33


34 JUNE 2016


MANAGEMENT

products and services, making a transition to a sustainable business presents significant opportunities. Companies that are ahead of the game, leading the way to embedded sustainability into the very core of their strategy and operations, are the ones most likely to succeed in the face of current and future challenges. In 2005, the World Summit on Social Development identified three areas to focus on, including economic and social development, as well as environmental protection. What we actually see today is that most companies and organisations still focus more on the economic and environmental aspect of sustainability. The social aspect is largely ignored, and the impact widely underestimated. To get the most out of sustainability activities, companies will have to take all three areas of sustainability into account, as they are interrelated, and as such, influence each other. Taking all of the above into account, it can be safely assumed that the 21st century is an era of rapid modernisation and change, and this pertains to politics, the economy, and increasingly towards social systems. Stability and predictability are factors we can no longer rely on in today’s world. From a human resource perspective, these developments create the need for urgent and fundamental change in the way we attract, manage and develop people. Historically, IQ was the most important factor for a successful career. But today, people, and especially leaders, need to develop many additional qualities, which will enable them to effectively deal with stress, ever-changing work processes, and a lack of job security. In this new viral world, personal impressions make a difference, emotions and personal values have increasingly made their way into our professional and business lives. That’s why it’s even more important to understand the dynamics of how and why some people handle change and challenges more successfully than others. Many concepts have been evolved to explain what enables certain people to be more successful than others, and today’s understanding is that Emotional Intelligence (EI) is one factor in this. Certainly, this is not a new insight, as the impact and processes behind EI have been widely examined over the last 20 years, but facing Industry 4.0, as

well as the trend into a sustainable business, it might be the perfect time to have another look at what is really driving successful people.

What is EI? Following Travis Bradberry and his book ‘Emotional Intelligence 2.0’ (2009), there are three factors that make a person ‘tick’ - IQ, EI and Personality. According to his findings, there is no known connection between IQ and EI, and it’s not possible to predict emotional intelligence based on how smart someone is, or what kind of personality he has. Another finding is that IQ and personality (for adults) stay stable over a lifetime, and doesn’t change. Interestingly, for EI, there is a uniform understanding that the related skills build up on each other and – independent of age – can be enhanced with suitable training. A famous theoretical model created by Daniel Goleman includes four main aspects of Emotional Intelligence: Self-Awareness, Social-Awareness, Self-Management and Relationship-Management. He defined EI as “the ability to recognise, understand, and manage our own emotions, and to recognise, understand and influence the emotions of others. In practical terms, this means being aware that emotions can drive our behaviour and impact people (positively and negatively), and learning how to manage those emotions – both our own and others – especially when we are under pressure.”

Is there a link between leadership styles and EI? Furthermore, his consulting firm Hay/ McBer analysed the relationship between EI and leadership styles. They found six distinct leadership styles, each springing from different components of emotional intelligence. The research summarised the styles, their origin, when they work best, and their impact on an organisations climate.

The main findings were summarised as: The six styles, taken individually, appear to have a direct and unique impact on the working atmosphere of a company (climate), division or team, and, in turn, on its financial performance. The research indicates that leaders with the best results do not rely on one leadership style - they use most of them in a given week, seamlessly, and in different measure, depending on the business situation. According to the report, the visionary leadership style has the most positive effect on working atmosphere of a company, but three others, Affiliate, Democratic and Coaching, follow close behind. That said, the research indicates that no style should be relied on exclusively, and all have at least short term uses.

How to measure your EI? There are various tools and platforms available that support individuals and organisations

JUNE 2016 35


MANAGEMENT

to measure and understand Emotional Intelligence. The EQ-I (Bar-On) is a self-report instrument to assess those personal qualities that enable some people to possess better emotional well-being than others. The Emotional Competence Inventory (Goleman) is a 360-degree instrument, where people evaluate the individuals within an organisation (Individual Feedback Reports), or the organisation as a whole (Work Force Audits). These audits can provide an organisational profile for any size group within the company. In addition, there are various training and certification programmes available, which enable leaders or people in HR-related functions to broaden and professionalise their EI skills and expertise. Finally, for all employees, coaching and mentoring programmes can add an incredible value to understand and develop Emotional Intelligence.

What are the Pros and Cons? When EI found its way into the corporate world, various studies and reports have analysed its impact and significance. Especially in the beginning, most research illustrated highly positive outcome for organisations if they focussed on EI in their Talent Acquisition and Development programmes. Recent examples, such as the Global Empathy Index

(2015) from the Lady Geek advocacy agency, shows that businesses are more profitable and productive when they act ethically, treat their staff well, and communicate better with their customers. The top 10 companies in the Global Empathy Index 2015 increased in value more than twice as much as the bottom 10, and generated 50 per cent more earnings. (For more details go to https://hbr. org/2015/11/2015-empathy-index). Another example is the EI Consortium that publishes various points that build a case for how emotional intelligence contributes to the bottom line in any work organisation. In addition, they publish latest research findings that support the positive outcome of EI in the business world. One example: For 515 senior executives analysed by the search firm Egon Zehnder International, those who were primarily strong in emotional intelligence were more likely to succeed than those who were strongest in either relevant previous experience or IQ. In other words, emotional intelligence was a better predictor of success than either relevant previous experience or high IQ. More specifically, the executive was high in emotional intelligence in 74 per cent of the successes, and only in 24 per cent of the failures. For the full details go to http://

www.eiconsortium.org/reports/business_ case_for_ei.html. However, critical voices have come up, and new studies show the potential downside of EI. Review finds that, in many studies, poor research methodology has exaggerated the significance of EI. A group of Austrian psychologists, for example, reported a correlation between EI and narcissism, raising the possibility that narcissists with high EI might use their ‘charming, interesting, and even seductive’ qualities for ‘malicious purposes’, such as deceiving others. Another study with college students shows that people with high EI might be more over-credulous due to overconfidence in their ability to read others.

What to take away? Creating awareness around Emotional intelligence has never been easier. There is no lack of information, and no shortage of partners who can help you to develop, implement and audit a business model that will support you in getting it right. There are various tools and services (training programmes, mentoring and coaching) available that helps individuals and organisations to measure EI, and to develop and increase required skills such as Self-Awareness, Social-Awareness, SelfManagement and Relationship-Management. To be effective, individuals, and especially leaders, will need more than ever to be able to influence others through gaining their respect and enlisting their passions. And the more EI skills a leader has at his disposal, the more flexible and seamless he can be in switching styles, depending on the situation, and in turn, the better the outcome will be. A leadership coaching style is the least utilised, but it’s also maybe the most effective style to add to your soft skills portfolio. Higher emotional intelligence translates into better performance. Especially in jobs that require extensive attention to emotions (this counts for all jobs with social interaction such as sales, marketing, project management and all leadership or management roles). There’s a fine line between motivation and manipulation in relation to EI. People could use emotional intelligence for nefarious ends, but more often, emotional skills will be simply instrumental tools for goal accomplishment. -logisticsexecutive.com

36 JUNE 2016


locally locally invested, invested, Globally Globally connected connected

www.mfc.ae www.mfc.ae

Offices in UAe, QAtAr And netwOrks AcrOss the GlObe Offices in UAe, QAtAr And netwOrks AcrOss the GlObe logistics solutions for logistics solutions for retail | Automotive | fMcG retail | Automotive | fMcG chemicals | engineering | humanitarian chemicals | engineering | humanitarian 45,000 Pallet Positions 45,000 Pallet Positions 1,500 sq Meters Open storage 1,500 sq Meters Open storage 2,000 sq Meters chemical storage 2,000 sq Meters chemical storage temperature control storage temperature control storage Jebel Ali, dUbAi Jebel Ali, dUbAi Tel: +971 4 8819600 Tel: Fax:+971 +971448819600 8817231 Fax: +971 4 8817231 E-mail: mfcgroup@mfc.ae E-mail: mfcgroup@mfc.ae

AbU dhAbi AbU dhAbi Tel: +971 2 6456657 Tel: Fax:+971 +971226456657 6456658 Fax: +971 2 6456658 E-mail: mfcgroup@mfc.ae E-mail: mfcgroup@mfc.ae

VnA racking VnA racking rf technology bar coding rf technology bar coding state-of-Art firefighting systems state-of-Art firefighting systems Value Added services: reworks & Packaging Value Added services: reworks & Packaging shArJAh shArJAh Tel: +971 6 573 9089 Tel: Fax:+971 +97166573 5739089 9024 Fax: +971 6 573 9024 E-mail: mfcgroup@mfc.ae E-mail: mfcgroup@mfc.ae

QAtAr QAtAr Tel.: +974 4678023/ 4678038 Tel.: Fax: +974 +974 4678023/ 4677270 4678038 Fax: +974 4677270 E-mail: mfcdoha@qatar.net.qa E-mail: mfcdoha@qatar.net.qa

Warehousing & Distribution | Sea Freight | International Projects | Container Concepts | Liner Agency Warehousing & Distribution | Sea Freight | International Projects | Container Concepts | Liner Agency


WOMEN IN BUSINESS

Power Women in Arabia:

Shaping the Path for Regional Gender

Equality

While significant progress has been made in gender equality, A T Kearney’s recent regional study shows that a concerted effort of all stakeholders is required to reach the final goal

38 JUNE 2016


WOMEN IN BUSINESS

Women’s Contribution to the Economic Landscape: A New Reality Numerous studies in recent decades have revealed the positive impact of female participation in the workforce. It is clear that greater participation by women contributes to a substantial improvement in the economy. Recently, the B20 Employment Taskforce, in collaboration with AT Kearney, determined that reducing the gender gap by 25 per cent will add 100 million women to the G20 labour force by 2025. Additionally, closing the gender gap could add 12 per cent to the size of the total OECD economy by 2030. The economic benefits of increasing gender diversity in the workplace make a strong case for encouraging female participation. The GCC has seen significant progress in recent decades - female participation in the workforce has increased by 33 per cent since 1993, and the GCC has been one of the regions that has achieved higher progress over the past two decades (see figure 1). Additionally, the trend is consistent across the GCC, with an increase in all countries, ranging from 15 per cent in Kuwait to a remarkable 63 per cent in the UAE.

JUNE 2016 39


WOMEN IN BUSINESS

A T Kearney’s recent regional study on Power Women in Arabia suggests that recent increases in female participation are due to rising levels of motivation to pursue a career, and an increase in women’s skills and capabilities (see figure 2). It is not surprising to see an increase in female participation in the workforce when women in the GCC dominate school campuses - for example, 76 per cent of total tertiary students are women in the UAE, 88 per cent in Qatar, and 52 per cent in KSA. Despite significant progress over the years, the participation of women in the regional workforce remains one of the lowest globally, with the GCC falling behind other countries in capitalising on the investment in education. In fact, the female labour participation ratio (FLPR) in two of the largest countries, Saudi Arabia and Oman, is below 30 per cent. Furthermore, in the bestpositioned country - Qatar, with a 51 per cent FLPR - only half of the female population Figure 1

over 15 years of age is economically active. There is no single factor that explains this lower participation; it is, instead, a combination of multiple elements. Forty-four per cent of respondents identified ‘cultural barriers’ and ‘lack of support’ as the top challenges women face. However, responses were widely distributed: for example, ‘lack of opportunities’, the factor considered the least relevant, was still highlighted as a key reason by 17 per cent of the participants. Many GCC policy makers are actively addressing the existing challenges. They have recently introduced a range of empowerment measures across the political, business, and educational arenas to level the playing field for women in the workforce. These measures range from creating the necessary regulatory environment (such as the 60-day maternity leave introduced by the Qatar government), to strengthening the existence of role models in society (for example, KSA appointed 30 women to the country’s top advisory Shura

Female labor participation in the GCC now stands at 38% while male participation is 2.5x as much

Source: World Bank; A.T. Kearney analysis

Figure 2

Reasons for change in female employment

Note: Percentages may not resolve due to rounding; Source: A.T. Kearney gender equality study, October 2015

40 JUNE 2016


WOMEN IN BUSINESS

JUNE 2016 41


WOMEN IN BUSINESS

Council in 2013 and, in 2015, Saudi women stood as candidates and cast their votes in municipal elections for the first time). The private sector is following through, with several companies offering incentives to attract and retain women in the workplace (like free nursery services and flexible work schedules). Gender diversity is now part of the strategic agenda at more than half of the private companies in the GCC, and 56 per cent of respondents working for such companies say that female employment has grown over the past five years (see figure 3).

Women in Leadership: From Myth to Reality Twenty years ago, there was not a single female CEO at a Fortune 500 company, and the share of female board members was below nine per cent. The share of female CEOs and board members at Fortune 500 companies now reaches more than 20 per cent - which is still far from equal representation, but it means that women head 26 major global firms. The ratio of women in senior positions varies across regions, from 35 per cent in the Americas to 29 per cent in Africa, 26 per cent in Asia, 21 per cent in Europe, and a meagre nine per cent in the GCC. Within the GCC region, the ratio varies from seven per cent in Saudi Arabia and Qatar, to the highest level of 14 per cent in Kuwait. Despite these regional differences, the challenge remains: what is required to close one of the world’s largest gender gaps? Figure 3

At board level, the contrast between the GCC and the rest of the world is even more striking. In 2014, 17 per cent of board members at Fortune 500 companies were female. Shares of board seats held by females in the GCC countries in the same year ranged from 0.01 per cent in Saudi Arabia to 1.7 per cent in Kuwait. The study shows the majority (80 per cent) of respondents believe that women and men are equally capable leaders. Interestingly, the study also reveals that the majority of women (55 per cent) believe they have the same career opportunities as men. Men are more optimistic, with 85 per cent believing that men and women have the same opportunities. To get more GCC women into leadership roles, it is important to overcome the barriers and impediments to female career progression. The key areas explored in A T Kearney’s research were (1) will and ambition to pursue a career, (2) skill set necessary to succeed, (3) presence of opportunities to advance in the business place, and (4) influence of society and culture. The A T Kearney study highlights that women in the GCC are ambitious and value their careers. They are confident in their contribution to the workplace, and they do not believe that having a family should be an impediment. Eight out of 10 women surveyed attach a high importance to their career, and only seven per cent are working exclusively for financial gains. Women in the GCC are also ambitious, with 62 per cent

Female employment levels in GCC companies 2010-2015

Note: Percentages may not resolve due to rounding; Source: A.T. Kearney gender equality study, October 2015

42 JUNE 2016

aspiring to a management role within the next seven years, and more than 50 per cent aiming at a senior or board-level position. In addition, the increasing number of highly educated and qualified women in society offers an untapped pool of talent. It is not lack of will or skills that rests behind the leadership gender gap in the GCC workplaces. Despite the ambition level and qualifications, one of the impediments for more women leaders that was identified in the study were different management profiles. More than 60 per cent of the respondents believe that women lack risk-taking ability, and more than 30 per cent think that women could do better in networking and competitiveness. On the other hand, most respondents rate women high on people-related skills. However, these perceived differences do not justify the gap of women leaders identified. Another interesting insight emerges: although, on average, half of the respondents have witnessed cases of gender discrimination, the study results indicate it is significantly less frequent in senior positions than in junior positions. This could mean that once a woman breaks through the glass ceiling, gender stereotypes do not apply as strongly. Achieving a certain scale and ensuring the existence of strong role models becomes crucial to gender equality in the corporate world.

Women in Entrepreneurship: Creating the Business of Tomorrow The attractiveness and ease of starting a business has improved globally, as well as regionally, for both men and women. Rates of total female entrepreneurship are steadily on the rise across regions, with female total entrepreneurship activity (TEA) growing at an average rate of eight per cent since 2005. The Middle East and North Africa (MENA) region, including the GCC, grew at an average rate of nine per cent over the same period. Despite recent progress, rates of female entrepreneurship in the GCC have remained low compared to the rest of the world. In 2009, the GCC - at only 3.5 per cent - fell well below the global average of 8.8 per cent. At 10.5 per cent in 2014, the GCC managed to approach the global average of


WOMEN IN BUSINESS

JUNE 2016 43


11.8 per cent, but still remained far behind other regions of the world, particularly Latin America, the Caribbean and sub-Saharan Africa (see figure 4). More striking than low rates of female TEA, the GCC faces the greatest gap between male and female TEA in the world. The global average ratio of male to female TEA is 2.1 to 1, with 2.1 male entrepreneurs for every female entrepreneur, whereas in KSA, for example, this ratio is 10 to 1.8 Throughout the GCC, rates of business ownership by gender reflect this discrepancy (see figure 5). In the UAE and Kuwait, two per cent of women own businesses, compared to seven per cent of men. In Bahrain and Saudi Arabia, the difference is eight per cent, and in Qatar the difference is 11 per cent. However, the difference in start-up intentions across GCC countries is smaller. In Qatar, 32 per cent of the female population have start-up intentions, compared to 40 per cent of the male population. In every country except KSA, rates of female start-up intentions are higher than rates of actual female business ownership. The results of A T Kearney’s study suggest that this discrepancy is due to lack of opportunity. Almost 70 per cent believe there is still a wide gap between the opportunities enjoyed by male and female entrepreneurs. When asked to explain why, most respondents highlighted mainly cultural reasons, saying women were not encouraged to become entrepreneurs. In addition to cultural barriers, women are also impacted by the broader systemic challenges faced by all entrepreneurs in the region. In the 2015 ‘Ease of Doing Business’ Report, published by the World Bank, the UAE ranked 58 out of 189 economies for ‘ease of starting a business’, with the other GCC countries ranking between 100 and 150. The mean score across the GCC is 84.10. Entrepreneurs from the GCC region highlight three specific challenges as the most important. Access to capital is the most significant challenge, with more than 70 per cent of entrepreneurs from this region identifying it as a primary obstruction. Additionally, 62 per cent of regional entrepreneurs consider bureaucratic procedures and red tape a key

44 JUNE 2016

obstacle. In the UAE specifically, 68 per cent of entrepreneurs say finding talent is a major hurdle. This sentiment is echoed by businesses outside of the region attempting to expand into the GCC. For female entrepreneurs within the region, these fundamental challenges are exacerbated. Using mentors to gain access to capital is widely acknowledged to support entrepreneurs. Finding mentors for women entrepreneurs within the GCC countries is challenging. In Bahrain, for example, 57 per cent of male entrepreneurs report having access to a mentor, compared to 38 per cent of female entrepreneurs. In the other GCC

Figure 4

countries, the discrepancy is smaller, and ranges between nine and 15 percent. In an interesting study by the Global Entrepreneurship and Development Institute (GEDI), a country’s success in supporting female entrepreneurs is attributed to three influencing factors: entrepreneurial environment, entrepreneurial ecosystem, and entrepreneurial aspirations. Globally, the most advanced countries in terms of female entrepreneurship rates have uniformly high ratings across most of the above criteria. Zooming in on the Middle East, UAE and KSA rank highly in some of these areas. For example,

Female total entrepreneurial activity (TEA)¹

1 Female TEA is measured as a percent of the total female population and is compared year over year. 2 South Asia data not available for 2009 – Source: Global Entrepreneurship Monitor, GEM Key indicators 2009-2014

Figure 5

GCC rates of business ownership by gender reflect the gap between male and female total entrepreneurial activity (TEA)

Source: Global entrepreneurial Monitor, GEM Key Inticators 2009-2014


WOMEN IN BUSINESS

Shaping the Path for Regional Gender Equality

UAE’s strength lies in its highly-educated entrepreneurs, high levels of technological absorption, and strong export focus. KSA, instead, leads in opportunity recognition, and has similarly high rates of technology absorption and transfer. Other areas, such as tier one financing, networking, access to childcare, and women’s legal rights present opportunities for improvement for the region as a whole. Across the world, there is an observable correlation between the presence of a high number of large-scale initiatives promoting female entrepreneurship and the respective country’s position in the ranking of top countries for women entrepreneurs. The United States, the Netherlands, and Nordic countries (Denmark, Sweden, Norway, Finland, Iceland) occupy most of the top 10 positions in terms of female entrepreneurship. There are also some visible efforts in the GCC region to develop a more robust

ecosystem for female entrepreneurs, with UAE, Qatar, and KSA leading the way. Select examples include WOMENA, an angel investor group for women only, based in the UAE; Hadafi, a KSA-based female entrepreneurship development programme; and the Roudha Center, a Qatari source for financial and legal advice and training for female entrepreneurs. Currently, many ongoing initiatives are aimed at both male and female entrepreneurs, with few specifically targeting women. More support for female entrepreneurs is crucial, with a focus on specific development areas: financing, mentorships and networking, and international opportunities; for female entrepreneurship in the GCC to realise its full potential, there will also need to be a cultural shift toward supporting female innovation and entrepreneurial aspirations.

A T Kearney’s study confirms the great progress achieved in the GCC regarding gender equality in the workplace. However, gender equality still represents a clear opportunity for improvement. From both the perspective of women in leadership positions, and the prevalence of female entrepreneurs, the GCC faces a large gap vis-à-vis other leading regions. Advancement toward gender parity requires moving beyond incentivising women to pursue higher education or increasing female participation in the workforce. It must include systematic efforts to propel women to reach the leadership positions they seek and deserve, to achieve their professional dreams and aspirations. There is no simple or quick solution to overcome the various barriers that hamper women from reaching the top of the ladder. A concerted effort of all stakeholders – businesses, policy makers, academic institutions and families – is required to make gender parity a reality. Policy makers can support this journey by continuing to set an adequate regulatory framework, and by actively supporting the empowerment of women. The Nordic countries represent a remarkable example of the power of creating a regulatory framework, with generous maternity leave laws, state child care, and quotas requiring publicly listed firms to allocate 40 per cent of corporate board seats to women, among others. Companies can enable the progress by decreasing the limitations for an effective participation of women in the workplace throughout the different phases of their lives (for example, child-care options and flexible work arrangements), and ensuring the existence of strong role models in the organisation (like leveraging human resources tools such as mentorship, sponsorship, and leadership development programmes). Each one of us, as individuals, needs to continue driving this transformation, by actively contributing to change the culture and the mindset of the ones who surround us – at work and at home. -By Isabel Neiva, Principal; Rudolph Lohmeyer, Director, Global Business Policy Council; Ada Perniceni, Partner and Bob Willen, Partner - all at AT Kearney

JUNE 2016 45


MFC

the Container Concept With the average living space prices on a constant rise over the past few years, many people are choosing alternative space solutions. The deteriorating economy, rising levels of pollution and rapid increase in population has forced people to consider more eco-friendlier ways. So, what is the newest solution for living spaces? Shipping containers ‌ they are cheap, compact and eco-friendly!! Dubai-based MFC Cargo Container Concepts has been actively innovating and

46 JUNE 2016

promoting a host of these green and sustainable living options using upcycled shipping containers since its inception in 1990s. Besides having manufactured the GCC region’s first permanent containerized mall, MFC provides cutting edge construction alternatives including residential and office units, pop-up venues for events, transportable units for the mining, construction, power and oil & gas industries.


ADVERTORIAL

Driving down Al Wasl Road, you will come across a rather unexpected structured mall made of containers. The ’BOXPARK‘, having a footprint of 1200 meters, is a pedestrian shopping mall stylishly merged with open spaces and amenities. Fabricated by MFC Cargo Container Concept, for Meeras Holdings, the development comprises of 220 renovated and brightly colored shipping containers converted into cafés, multi-purpose facilities, rental spaces and restaurants.

MFC has managed to win over many converts over the years. One such recent convert was for Hyundai Construction, a control room made of three high cube containers having acid resistant floors, well insulated walls, explosion proof lights and Air conditioners. Addressing the dire need for economical and portable spaces, MFC is also involved in a project for Abu Dhabi Ports, which includes building a modular double storey building, fabricated using 20’ and 45’ containers,

modified internally and painted externally, which will accommodate the marine service technicians. The Ground level of the building is constructed using two 45’ containers with the 1st floor constructed using two 20’ containers with a traditional ‘karmeed’ pergola on top. The utilities rooms are installed with all required amenities, and the building has external steps and staircases. One of the beauties of container buildings is that they’re quick to construct and MFC Cargo Container Concept has the expertise to manufacture units for any bespoke requirements in a short span of time. When Land Rover, the multinational car manufacturer wanted a creative and sustainable solution for the Dubai Motor Show - 2016, MFC’s repurposed container was the answer. A structure consisting of a 40’ Flatbed container was redone into a vibrant exhibition stand with side-opening doors. “The humble shipping container is a credible alternative to conventional construction methods plus it makes for some exciting buildings,”says Nick Trott, General Manager, MFC. Marine containers are made of ‘weathering’ steel, featuring specialized alloys that make them corrosion resistant. When needed, these make strong and flexible structural framework for buildings, regardless of whether they are used for residential, office or commercial purposes. MFC Container Concepts, has produced a number of other projects for businesses and governments which include Racing Pavilions (Volvo Ocean Race), Hospitals, Medical centers, Accommodation units and office complexes, through the aesthetics of shipping containers – materials that have proven themselves to be sustainable and affordable.

JUNE 2016 47


TECHNOLOGY

Drone delivery UPS Foundation partners with Zipline, a Californiabased robotics company, and Gavi, the Vaccine Alliance, to explore using drones to transform the way life-saving medicines are delivered across the world. GSC reports.

48 JUNE 2016


MANAGEMENT

A

Ed Martinez, UPS and Keller Rinaudo, Zipline, Humanitarian Aid Partnership

ll too often, critical health products spoil or fail to reach the individuals who urgently need them. In an effort to address this serious problem, UPS Foundation has partnered with Zipline, a California-based robotics company, and Gavi, the Vaccine Alliance, to explore the possibility of using drones to deliver lifesaving medicines across the world. This public-private partnership combines a century of global logistics expertise,

JUNE 2016 49


TECHNOLOGY

cold chain, and healthcare delivery from UPS, with Zipline’s national drone delivery network, and Gavi’s experience in developing countries, focused on saving lives and protecting health in the most remote places of the world. The UPS Foundation has awarded a US$ 800,000 (AED 2,938,360) grant to support the initial launch of this initiative in Rwanda.“Public-private partnerships are the key to solving many of the world’s challenges, with each partner contributing its unique expertise,” said Eduardo Martinez, president of The UPS Foundation and chief diversity and inclusion officer at UPS, adding,“UPS is always exploring innovative ways to enhance humanitarian logistics to help save lives, and we’re proud to partner with Gavi and Zipline as we explore ways to extend the Rwandan government’s innovations at a global scale.” Starting later this year, the Rwandan government will begin using Zipline drones, which can make up to 150 deliveries per

50 JUNE 2016

day of life-saving blood to 21 transfusing facilities located in the western half of the country. According to the WHO, Africa has the highest rate in the world of maternal death due to postpartum haemorrhaging, which makes access to lifesaving blood transfusions critically important for women across the continent. “This exciting new partnership is one that shows UPS’s innovation at its best. Its application for a good cause is something that has enormous potential for other parts of UPS’s global network,” said JeanFrancois Condamine President of the Indian Subcontinent, Middle East and Africa (ISMEA) district for UPS.“While it is too early to determine whether similar uses for drones would work well in the ISMEA region, a new door is open, and we are excited about future opportunities.” “Our partnership with UPS and Zipline is an exciting step into a new territory for the delivery of medical supplies,”said Dr Seth Berkley, CEO of Gavi.“It is a totally

different way of delivering vaccines to remote communities, and we are extremely interested to learn if UAVs can provide a safe, effective way to make vaccines available for some of the hardest-to-reach children.” While Rwanda’s national drone network is initially focused on the delivery of blood supplies, the plan is to expand the initiative to include vaccines, treatments for HIV/ AIDS, malaria, tuberculosis, and many other essential and lifesaving medicines. Rwanda’s drone delivery operation is expected to save thousands of lives over the next three years, and could serve as a model for other countries. “The inability to deliver life-saving medicines to the people who need them the most causes millions of preventable deaths each year. The work of this partnership will help solve that problem once and for all,” said Zipline CEO Keller Rinaudo.“With the expertise and vision of UPS, Gavi and Zipline, instant drone delivery will allow us to save thousands of lives in a way that was never before possible.”


UNWIND

Y A D O T E IB

R C S SUB

June 2016 Issue 27

ENHANCING THE BUSINESS OF LOGISTICS

EI - emotional intelligence

Rethink and refocus talent development

Power Women in Arabia

Shaping the path for gender equality

RSA-TALKE

Enhancing chemicals logistics’ solutions in Dubai South

PLEASE FILL IN ALL FIELDS IN BLOCK CAPITALS Name: Company Name: Position: PO Box:

THE TALENT

City:

DILEMMA

Country:

Developing the workforce

Telephone:

GSC_June2016_Cover.indd 1

Mobile: E-mail: Annual Subscription in the UAE (US$ 30.00) Annual Subscription in the GCC (US$ 65.00) Annual Subscription outside GCC (US$ 100.00)

Signature ____________________

Call: +971 4 3978847/3795678 or e-mail to info@signaturemediame.com Date:_______________

P. O. Box 49784, Dubai, UAE, Tel: 04 3978847/3795678 Email: info@signaturemediame.com

6/1/16 2:49 PM


TRACK AND TRACE IN THE FRESH VEGETABLES INDUSTRY

52 JUNE 2016


TRACK AND TRACE IN THE FRESH VEGETABLES INDUSTRY

A holistic approach New label printer/applicators on 17 tomatopacking lines at Florida based West Coast Tomato has become an example of ingenuity. Jack Mans, Plant Operations Editor

P

ackaging labels play a key role in the supply chain. A well-designed label communicates important product information, helps manufacturers and shippers comply with government and industry regulations and standards, and (if bar codes are involved) acts as the cornerstone for automated tracking and shipping applications. However, for a label to accomplish any of those tasks, it has to stay on the case. Just ask the staff at West Coast Tomato, a Palmetto, FL-based tomato-packing company that solved its labelling problems with a redesigned print-and-apply system, along with modifications to its material-handling equipment.

West Coast Tomato is a high-volume tomato packer that sells produce to restaurants, grocery stores, repacking companies, and other customers across the country. While the plant is capable of processing and packaging up to one million pounds of fruit in a single day, its labelling system had bogged down operations to the extent that management was ready to scrap the printers and start over. Under USDA requirements, produce companies have to properly label each case of their product. West Coast, however, was only achieving 50 per cent label accuracy with its previous system.“We had a very maintenance-intensive system,”says John Darling, Systems Manager at West Coast Tomato.“Our customers JUNE 2016 53


were complaining about the labels not being on the cases, or falling off when they were delivered,”he says, adding,“We worked on that system for two or three years, trying to get it to operate correctly, and then we started looking for a replacement.” The plant operates 17 lines, each with its own print/apply station to label the cases. Two different automated fillers, each handling a different type of tomato, feed 25 pound cases of fruit to each line. As those cases merge, photoelectric eyes trigger the print/apply system to produce the correct label, depending on which filler the case came from, and apply the label as the case moves down the conveyor. The system never worked correctly, according to David

54 JUNE 2016

Moore, Maintenance Manager at West Coast Tomato. Cases were not only mislabelled, but the print/apply system was not able to effectively attach the labels. That meant that even if the labels made it onto the correct cases, they frequently fell off prior to shipment.“The cases weren’t stopped at the applicator,”says Moore,“The labels would sort of get blown onto the cases, but they would just barely touch them.”An employee had to manually check each pallet, and re-apply any missing labels; a time-consuming process that led to even more errors. Employees also had to periodically scrape hundreds of stray labels off of the plant floor. The issues with the labelling system, combined with some

conveyor problems, led to frequent jams and work stoppages, which negatively impacted the plant’s processing throughput. Taking a second look, West Coast Tomato originally thought an inkjet system would solve its printer problems. They contacted local labelling and material handling systems integrator, Cheetah Systems LLC, to help them with their conveyor setup. But when Cheetah personnel saw what was happening with the printers, they suggested it would be less expensive to simply redesign the print/apply system.“They were so distraught with the original system, I don’t think they believed we could get a label on every case in the right place each time,”says Gary Gatewood, VP at Cheetah.


TRACK AND TRACE IN THE FRESH VEGETABLES INDUSTRY

Coast to test and evaluate new adhesives to make sure the labels stayed in place. They also reconfigured the label applicator to accommodate a reduced label size. Cheetah supplies West Coast with Sato labels for the application, and provides maintenance and support for the print engines, which Darling says has been“critical to keeping the process running smoothly.”

Labels stay in place

Solving the label accuracy problem required fixes to the printer/applicator set-up, and to the material-handling equipment. Cheetah installed urethane covers on some of the conveyor rollers upstream of the labelling area to improve case flow, and then added pneumatic case stops to the live roller conveyors to index and control the random flow of cases. This ensured proper label adhesion and placement. Improving label accuracy was more complex. Because two separate fillers feed each line, the printing system has to be able to distinguish which of two possible labels should be applied to each case, while also communicating with a central label-control system.“West Coast Tomato had 17 lines and

34 fillers, all being controlled by one central computer, with all of that data going back and forth,”Gatewood says, adding,“There were a lot of data crashes.”The Cheetah team decided that the most economical solution would be to modify the firmware, which was supplied by Sato America Inc, so that the printer at each line could store both label formats locally, and then load the correct one into the print buffer, based on input from the photoeye system. Sato provided the patented, custom firmware modification, and Cheetah utilised the on-board PLC of the printer/applicator, so that the labelling operation could be controlled locally. Cheetah deployed the initial prototype system in 2006 on a single line, using the Sato M8459Se print engine, along with Cheetah’s Model 313- LPA-T bar-code labelling system, then expanded the solution to six more lines the following season. West Coast now operates the Cheetah/Sato system on each of its 17 lines. At the end of the second season of operation, Cheetah developed a new Windows® XP-based, backend label-control system to replace the existing software, which was developed by an out-of-state vendor, and was no longer supported. Cheetah embedded Sato’s Label Gallery label design and printing software into the system, allowing West Coast to select the label formats for each line using Label Gallery, and then load them into the printer memory. Cheetah worked with West

The new label system easily achieved West Coast Tomato’s primary goal of meeting its labelling requirements.“We have a 95 per cent success rate in getting the labels on the cases, which is pretty miraculous in the tomatopacking industry,”Darling says. One employee, who previously spent most of the day checking cases and labels, has been assigned additional duties, and there are no longer piles of labels on the floor that have to be picked up by the cleaning crew. According to Darling, the plant previously experienced 10 to 15 stoppages per day, due to the old labelling system, but“we basically don’t have stoppages now. We react to a label applicator not working maybe two or three times per day,”he says. “As long as we maintain the distance between the cases, we can just push them through left and right,”Moore says, adding, “It has really helped increase our speed.”Now that the label system is working correctly, West Coast will be able to move forward with a planned automated palletising system. The Sato/Cheetah system will play a key role in that project by providing scannable bar-code labels on every case. While it took several years to complete the design, programming and implementation, Darling and the rest of the staff at West Coast are pleased with the way the system has improved plant performance and customer service. Darling credits the Cheetah Systems team for its holistic approach.“Identifying all of the problems in the process and coming up with modifications to overcome those was challenging. The people at Cheetah were systematic, and had an excellent knowledge base. Labelling is a notorious problem in the tomato packing industry, but you can see on our pallets that all of the labels are consistently placed. Our rate of missing labels has been reduced to virtually zero,”he concludes. -www.satoamerica.com/FoodTrackTraceWP

JUNE 2016 55


DP WORLD UPDATE

Strategy, growth and success for

DP World DP World is moving ahead full steam, growing internationally, and creating avenues for future growth. GSC reports.

56 JUNE 2016


DP WORLD UPDATE

Highlighting cross-sector connectivity

DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, with Chief Secretary for Administration of the Hong Kong Government, Ms Carrie Lam and UAE Minister of Economy, HE Sultan Bin Saeed Al Mansouri at the Belt and Road Summit in Hong Kong.

Participating in China’s Belt and Road Summit, held in Hong Kong last month, DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem highlighted the need for better international cross-sector connectivity in order to realise the significant trade potential. Bin Sulayem was part of a panel that discussed the topic of ‘Enhancing cross-sector connectivity along the Belt and Road’. He stressed the impact on global trade that economic cooperation can bring, with more than 60 countries involved in the One Belt One Road (OBOR) initiative. The OBOR includes 30 per cent of the world’s countries home to 70 per cent of its population, 55 per cent of global GNP and 75 per cent of total energy reserves. Said he,“With a project of this magnitude, it is essential that we remove complexities from the supply chain to realise the potential benefits of such a global initiative. International transport routes need to support seamless trade movement more than ever – this means simplifying customs requirements and standardising logistics, addressing different rail gauges and ICT issues, so that goods can move smoothly from point A to B without interruption and unnecessary bottlenecks. This requires cross sector and cross border partnerships.” “Dubai and the UAE are exporting this knowledge and expertise across the world. We’ve pioneered multimodal transport and logistics connectivity with smart technology at our flagship Jebel Ali Port and Jebel Ali Free Zone (Jafza), home to 7,300 companies. It has tremendous capability to process and deliver cargo with remarkable efficiency and is an outstanding example of how important soft and hard infrastructure are to the socio-economic success of any nation. That experience is being applied to our other operations across the world,”he added, continuing,“China is a key part of our global network. Our joint ventures in Qingdao, Tianjin,Yantai and Hong Kong are very important to us and are a perfect example of the impact of strong partnerships to realise efficiencies along the supply chain.” On the sidelines of the Summit, Bin Sulayem met HE Sultan Bin Saeed Al Mansouri, UAE Minister of Economy and Carrie Lam, Chief Secretary for Administration of the Hong Kong Government. He also visited Shenzhen and Qingdao as part of a Jafza roadshow to meet key customers and stakeholders. Bilateral trade between the UAE and China has more than doubled in the last five years, standing at almost USD 55 billion (AED 202 billion) today. The UAE is also the largest Middle East market for Chinese goods, home to some 4,200 Chinese companies.

JUNE 2016 57


Entrepreneurs at Round 6 of the Turn8 investor demo day.

Investing in start ups The latest round of the TURN8 initiative, a venture fund comprised of a growth accelerator programme for start-up companies, complemented by a follow-on investment fund, brought eight promising candidates and business investors together at the Grosvenor House Hotel in Dubai. A unique collaboration between enterprise and innovators, start-up teams in TURN8 are backed with investment, mentorship, training and year-long business development support. Follow-on investment helps them scale and grow globally. Since the start of the programme in 2013, over 8,000 start-up companies have applied to join with 60 receiving over USD four million (almost AED 15 million) in co-investment from the venture capital community. DP World Chief Information Officer, Yousif Al Mutawa, said,“DP World has an innovative mindset, and a priority for us is to encourage creative thinking, supporting young talent to drive the future. Dubai and the UAE are a great example of how innovation has led to economic development and we are delighted to nurture talented people in their quest for business success, providing a helping hand at this vital stage so they can follow their dreams to turn their ideas into reality.”

58 JUNE 2016

Said TURN8 Programme Manager, Ahmed Abdulwahab,“The accelerator is designed to coach each start-up in developing their product, sales and marketing efforts. These teams demonstrate innovative solutions with real, game-changing possibilities, and it’s exciting to join them on their journey from idea inception to market entry.” Al Tayyar Travel Group CEO, Abdullah Bin Nasser Aldawood delivered a keynote speech, highlighting the opportunities in corporate venture capital and his experience in start-up investments. The Al Tayyar Travel Group has successfully invested in start-ups like Careem, Wadi and Musafir.com. The interesting part of the evening came when investors received a ‘chequebook’ worth USD one million (AED 3.67 million) in ‘Monopoly Money’ to be invested in different teams. Investors wrote cheques to teams in amounts they felt reflected actual investment potential. The team that collected the most money will receive TURN8 follow-on funding. Start-up companies chosen for round six of the programme include: AirGo (Singapore): An award-winning and patent-pending design concept that will take both airline profits and passenger experience to a whole new level Bridg (UAE): A mobile payment platform

that allows smartphones to transact regardless of connectivity. Bridg partners with local gateways and processors to enable fast deployment across the global landscape Meetizer (Spain): A social app where travellers and expats connect and share plans in real-life by creating ‘here & now meet-ups on the go’ over a coffee or lunch break, an event or whatever they plan Finerd (UAE): Harnessing the power of the latest technology and rigorous academic research with an honest management, Finerd provides intelligent investment solutions for everyone Visage (UAE): A crowd sourced recruiting platform for start-ups and SMEs. Professional recruiters worldwide refer their surplus candidates HeyDoc! (UAE): A healthcare communications and technology platform dedicated to connecting patients with medical consultants, wherever they are in the easiest way possible. Delivering inapp consultations, without the need for physical appointments Prattler (Ukraine): A social media platform creating a user’s own brand in a live stream while following any broadcasted media content. Users can stream themselves directly to share emotions, thoughts and reactions with others while building their following of other users viewing the same event Mailburn (Russia): A clever business communication solution that will change emails forever by allowing users to close more business tasks and bring the entire business communication industry up-todate through speed, security and openness


DP WORLD UPDATE

DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem joins ministers and senior government officials of Turkey watching the opening of DP World Yarimca by President Recep Tayyip Erdoğan.

DP World opens new terminal - Yarimca, Turkey DP World Yarimca is officially open for business. The terminal was inaugurated by teleconference by the President of the Republic of Turkey, Recep Tayyip Erdoğan, in the presence of executives of DP World, including Group Chairman and CEO, Sultan Ahmed Bin Sulayem, and senior government officials like the Minister of Transport, Maritime and Communications of the Republic Turkey, Binali Yıldırım; Minister of Foreign Affairs of the Republic of Turkey, Mevlüt Çavuşoğlu; Minister of Environment and Urbanisation of the Republic of Turkey, Fatma Güldemet Sarı; The Republic of Turkey and Prime Ministry and Investment and Promotion Agency, Arda Ermut. As one of the biggest in the country, the new terminal can handle up to 1.3 million containers covering 460,000 square metres, enhancing Turkey’s connectivity with Europe and Asia and enabling trade from the heartland of its most industrialised region, Izmit Bay. DP World Yarimca is the first infrastructure project in Izmit Bay to be run by an international operator, and the first in the country to use remote controlled

gantry cranes with automated gate operations featuring a vehicle appointment system for faster processing. It also has fast scanner x-ray machines, the first of their kind in Turkey that can scan 120 containers every hour. It has two main berths of 465 metres and 430 metres in length that can accommodate two vessels at the same time. Six ship-to-shore gantry cranes have been installed together with 18 electrical RTGs (Rubber Tire Gantry Cranes) used for container stacking and weighing. Said President Erdoğan,“DP World Yarımca will reduce costs and increase competitiveness of industrial and trading companies located in our region.” Yıldırım thanked DP World for choosing Turkey for its investment, and said that in the last 13 years, the amount of foreign direct investment to the country had increased more than 10 times. He noted Turkey’s position at the centre of the world, taking only three hours to reach 56 countries with a USD 30 billion (AED 110 billion) economy between them. DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, said,“Turkey and the UAE share a unique heritage. The UAE and Dubai firmly believe in the future of Turkey as a natural

bridge between both East-West and North-South axes, creating an efficient and cost-effective outlet to major markets and providing business easy access to 1.5 billion customers in Europe, Eurasia, the Middle East and North Africa.” “Our investment is not just in machinery and equipment – it’s about our people, our most important asset. DP World Yarimca currently employs 300 people, and we aim to reach 650 jobs when at full capacity. There are over 800 jobs identified indirectly in the local economy and many more local and regional supplier opportunities. This illustrates the ripple effect of projects of this magnitude – that boost economies and prosperity for the long term,”he added. DP World Yarımca CEO, Nichola Silveira, said that she was proud to be leading the industry in a traditionally male dominated industry, which highlighted the equal opportunities available to everyone to take part in senior management and technical positions. In 2015, total trade between Turkey and Dubai was AED 25.26 billion. Imports were AED 14.6 billion (almost US$ 4 billion), exports AED 7.9 billion (USD 2.1 billion) and re-exports AED 2.77 billion.

JUNE 2016 59


NEW DEVELOPMENT

Enhancing chemicals logistics’ solutions in Dubai South RSA-TALKE opens phase one of their all-new integrated chemicals hub in Dubai

RSA-TALKE has completed the first phase of its integrated chemicals hub in Dubai’s Jebel Ali Free Zone. The facility is unique in the region in terms of the standards and the range of services offered, and complements the existing, state-of-the-art, hazardous materials warehousing capacities in Dubai South. The centrepiece of the inaugurated first phase of the chemicals hub is storage and transhipment capacity for up to 1,800 TEU – designed for empty or laden ISO tank containers with class three, six, eight and nine hazardous substances or nonhazardous chemicals. In addition to the purpose built warehouses in Dubai South, which were constructed in accordance with international safety and environmental standards, RSA-TALKE also offers cleaning, maintenance, inspection and certification services for ISO tank containers. “As the chemical and petrochemical companies here in the Gulf increase their degree of vertical integration, their demand for comprehensive, professional specialist logistics services is increasing too”, says Richard Heath, Director at RSA-TALKE. Adds Abhishek Ajay Shah, Director at RSA-TALKE, “In making this investment, we are supporting the diversification and growth of our customers by providing high-quality, reliable and safe services all from a single source, and further cements Jebel Ali and Dubai’s position as a chemicals hub.”

Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO, Chairman of the Ports, Customs and Free Zone Corporation, said,“We are delighted to be a part of RSA-TALKE’s remarkable growth in the region. The new facility will enable them to serve customers more efficiently and achieve even greater successes in the future. Jafza continually supports its valued business community of over 7,000 companies that have transformed it into a global centre for commerce and trade and an ideal business location for international and regional markets.” The complex is part of a comprehensive, modern chemical logistics centre in Dubai, an important transit hub for the region. In its second and final phase of development, plants for drumming hazardous and non-hazardous liquid chemicals will be constructed at the site, as well as a warehouse for packed products. Hence, RSA-TALKE supplements and expands the existing equally ultra-modern warehouses for hazardous and non-hazardous chemical and petrochemical products in Dubai South. When combined with the global transport capacities that the joint venture and its partners have at their disposal, RSA-TALKE is able to offer a comprehensive portfolio of chemical logistics services that meet the highest quality and safety standards, all from a single source – and in doing so, closes a gap in the specialist logistics services on offer in the region.

From left: Alfred Talke, MD, ALFRED TALKE Logistic Services and Member of the Board of RSA-TALKE, Richard Heath, Director Middle East & USA of ALFRED TALKE Logistic Services and Chairman of the Board of RSA-TALKE, Sultan Ahmed bin Sulayem, DP World Group Chairman and CEO, Chairman of Ports, Customs and Free Zone Corporation, Abhishek Shah, MD RSA Logistics and Member of the Board of RSA-TALKE; Armin Talke, Director of ALFRED TALKE Logistic Services, Ajay Shah, Chairman of RSA Logistics and Member of the Board of RSA-TALKE, Markus Gloeckler, Director Finance of ALFRED TALKE Logistic Services and Member of the Board of RSA-TALKE, Kirit Mehta, Director of RSA Logistics and Member of the Board of RSA-TALKE

60 JUNE 2016


Warehouse Management Software Efficiency. Transparency. Reliability.

www.ehrhardt-partner.ae


Global Supply Chain June 2016 Issue  

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

Read more
Read more
Similar to
Popular now
Just for you