GLOBAL SUPPLY CHAIN FEBRUARY 2020 ISSUE

February 2020 Issue 67

ENHANCING THE BUSINESS OF LOGISTICS

The Petrochemicals Alchemy Catalyst for GCC economies

P&O Maritime Logistics A new logistics star is born

UD Trucks

Gaining regional ground

Eaton

Securing Systems

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

     

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

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By the Gulf Petrochemicals & Chemical Association (GPCA) is the industry advocacy body for protecting the interests of the downstream energy, hydrocarbons and petroleum distillates sector in the Arabian Gulf.

Established in 2006, the Association voices the common and mutual interests of more than 250 member companies from the chemical and allied industries, accounting for over 95% of chemical output in the Arabian Gulf region. The industry makes up the second largest manufacturing sector in the region, producing a whopping over US$ 108 billion worth of products a year.

A revolutionary new chemical process technology, called crude-oil-to-chemicals (COTC), could more than double the profitability derived from a barrel of crude oil, according to a new, independent economic assessment from IHS Markit.

Currently, global, integrated refining and petrochemical companies typically earn about US$ 8.50 per barrel of refined crude oil, but by leveraging the new COTC process technology (based on a Saudi Aramco Technologies COTC design) in a world-scale refining and chemical facility, owners could increase their plant net margins to approximately US$ 17 per barrel, according to findings published in the IHS Markit Process Economics Programme Analysis In its preamble, the Association purports to support the region’s petrochemical and chemical industry through advocacy, networking and thought leadership initiatives that help member companies to connect, share and advance knowledge, contribute to international dialogue, and become prime influencers in shaping the future of the global petrochemicals industry.

To get up close and personal and to gain a window and review this burgeoning segment, Global Supply Chain conducted an exclusive, wide-ranging interview with Dr. Abdulwahab Al-Sadoun, Secretary-General, GPCA. In candid responses, Dr. Al-Sadoun, articulated the ethos of the Association, the current state of the industry and its vision for the future.

Elsewhere, we engage with René Kofod-Olsen, the newly appointed CEO, P&O Maritme Logistics (POML) and the former CEO, Topaz Energy and Marine. POML is the outcome of both an acquisition—and as an outcome, a new star is born in the logistics firmament. We get the low down on POML. We have rich content input in this edition and I hope you enjoy browsing and reading it. Needless to add, your comments and views are always welcome, seriously considered and will be appropriately addressed.

Happy reading!

Malcolm Dias

Editor malcolm@signaturemediame.com

febrUARY 2020 3

February 2020 Issue 67 September 2019 Issue 62

ENHANCING THE BUSINESS OF LOGISTICS

36 GPCA 06 NEWS 20 Emirates SkyCargo

An exclusive and wide-ranging interview with Dr. Abdulwahab AlSadoun, Secretary-General, GPCA.

41 Micro Mobility

The world’s leading carrier is cautiously optimistic about 2020.

Mahmoud Habboub, Director of Smart Mobility, Careem, outlines his vision for micro-mobility.

22 P&O Maritime Logistics

42 ICIS

A one-on-one with the newly appointed CEO Rene Kofod-Olsen.

Will Beacham looks at the global trade in chemicals and oil derivatives.

28 Momentum Logistics

44 Saudi Rail Forum 2020

30 Smart Cities

46 UD Trucks

32 Dubai Expo Legacy

48 DP World UAE Region

Gulftainer’s logistics arm is debuting in the US Port of Wilmington.

HE Mohamed Al Khadar Al Ahmed examines the impact of urbanization on Smart Cities.

The Oxford Business Group deliberates on the subject.

4 FEBRUARY 2020

The rail network is gaining traction in the Kingdom.

2019 was a good year for the manufacturer of commercial vehicles in the ME. We report the exciting developments at DP World.

50 Eaton

Ashraf Yehia, Managing Director, Eaton ME, brings us to speed on his company’s progress.

54 WFES 2020

We review World Future Energy Summit 2020 held in the UAE capital in January.

56 Intersec 2020

We assess the impact of the recently concluded event.

59 ADAC-RCA tie-up

Abu Dhabi Airports Company and Red Crescent Authority sign a business pact.

60 Tristar Group

Eugene Mayne, Group CEO, reflects on the 4th Industrial Revolution and its impact on business.

You wouldn’t accept complex booking in a restaurant.

So why do it in shipping?

Introducing Maersk Spot – our simplified booking tool to improve the efficiency and predictability in your supply chain.

With Maersk Spot, you get Loading guarantee

Fixed price

Compensation if in a rare case rolled

Login to https://www.maersk.com/spot to know more

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London Court of International Arbitration rules in favour of DP World n DP World has won a further legal hearing against the Government of Djibouti over the Doraleh Container Terminal. The new ruling by Tribunal says Djibouti acted illegally A Tribunal of the London Court of International Arbitration ordered Djibouti to restore the rights and benefits under the 2006 Concession Agreement to DP World and Doraleh Container Terminal within two months, or pay damages.

An independent expert has estimated the losses to DP World at more than US$ 1 billion. The ruling by the Tribunal said Djibouti had acted illegally when it forcibly removed DP World from management of the terminal in February 2018, claimed it had terminated the ‘Concession Agreement’ and transferred the Terminal assets to a state-owned entity.

The latest tribunal ruling is the sixth substantive ruling in DP World’s favour in the London Court of International Arbitration and the High Court of England and Wales. To date all have been ignored

by Djibouti despite the original contract for the concession being written under and governed by English law.

The Doraleh Container Terminal is the largest employer and biggest source of revenue in the country and has operated at a profit

DP World Jebel Ali every year since it opened. The Doraleh Container Terminal was found by an English court to have been a ‘great success’ for Djibouti, a press statement from DP World’s Management stated.

Dubai launches World Logistics Passport at WEF Davos n Dubai brought together Government leaders and heads of

major corporations from Asia, Latin America and Africa for the World Economic Forum Davos launch of the World Logistics Passport, a major initiative to boost South-South trade.

The World Logistics Passport links Customs World, DP World, and Emirates Group to enhance connectivity through Dubai and, through expertise sharing and process development, directly between partner countries.

The introduction of this pilot project, operational since July 2019, has already increased trade by participants by 10 percent.

The World Logistics Passport has been designed to overcome the non-tariff trade barriers, such as logistics inefficiency, that currently limit the growth of trade between developing markets.

South-South trade is already worth an estimated US$ 4.28 trillion annually, more than half of total developing countries exports in 2018, according to the WTO. However, many countries in Asia, Latin America and Africa have much smaller market shares in key export products in each other’s markets compared to their shares in developed countries, indicating the potential for substantial further growth, boosting prosperity.

Designed as a points loyalty scheme, the initiative has been set up to incentivise companies and traders to use Dubai’s

6 FEBRUARY 2020

Sheikh Ahmed Bin Saeed Al Maktoum and DP World officials at the WEF in Davos 2020. world-leading logistics facilities in return for cost and time savings and enhanced customs clearances.

“The World Logistics Passport will make trade through Dubai quicker, easier and more cost-effective, and help develop the economies of our partner countries,” noted Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, and Chairman of Ports, Customs and Freezone Corporation (PCFC), Dubai.

Tristar Group acquires land for logistics operations in the Port of Duqm

Bee’ah Wins Largest Waste Management Contract for Egypt’s new Administrative Capital n Bee’ah, (environment in

Eugene Mayne (second left, seated) with other officials at the deal signing ceremony

n Tristar Group, the global integrated energy logistics company, has acquired more than 11,000sqm logistic land in the Port of Duqm.

It will have a 3,048sqm covered warehouse with a capacity of 5,000 pallet position and an open yard for future expansion. The logistics warehouse project will offer 3PL and 4PL services.

Tristar established its presence in Muscat, Oman in 2002 and this move will enable the company expand its operations into the Sultanate of Oman.

Tristar also has a new facility located in the Rusayl Industrial Estate Phase 2 (Muscat) with a total plot size of 15,000sqm with an office building, a warehouse with a capacity of 1,000 pallet position, a five-bay workshop with two inspection pits, and a washdown bay. It can store products outside and inside the warehouse.

The facility offers Port Marine Services at various Ports and Anchorage areas in Oman by transporting crew, supplying fresh water, stores, lube oil, and gas oil; and providing marine logistics.

“The expansion of our presence in Oman to Duqm further strengthens our value proposition as we continue to serve the future requirements of our international oil and gas customers as well as major local companies, with the highest level of operational and international safety standards,” stated Eugene Mayne, Group CEO, Tristar Group, at the lease agreement signing ceremony.

“By attracting such leading logistic service providers as the Tristar Group to our logistics area we aim to confirm Port of Duqm’s position as the center of excellence serving the oil and gas industry in the Sultanate of Oman and beyond,” noted Reggy Vermeulen, CEO, Port of Duqm.

Arabic), the award-winning UAE-based sustainability and environmental services pioneer, has been appointed as the waste management partner for Egypt’s new Administrative Capital, which is being developed by the Administrative Capital for Urban Development and is one of the largest urban development projects in the world.

Bee’ah, the six-time winner of the Waste Management Company of the Year in the Middle East, is the latest in a long line of UAE success stories to expand internationally and take its advanced practices beyond borders.

After a hotly contested bid by all major players in the waste management industry, Bee’ah will provide its innovative solutions to the 71,400-hectare new capital that will house an anticipated population of 6.5 million and 21 residential areas.

To achieve an 80 percent waste diversion rate in the city, Bee’ah devised an integrated approach to environmental management for the new capital by bringing the best of sustainable practices in waste management and technologies to enable a circular economy for Egypt and reduce dependency on landfills.

“As sustainability imperatives become top on the agenda

Khaled Al Huraimel, Group CEO, Bee’ah for governments, businesses and communities, Bee’ah will continue to drive our vision of to be a pioneer of sustainable quality of life in the Middle East and beyond,” stated Salim Bin Mohamed Al Owais, Chairman of the Board of Directors, Bee’ah.

“Bee’ah aims to make a sustainable quality of life a reality in the Middle East and beyond, through a twin-pillared strategy of digitalisation and sustainability across our operations,” remarked Khalid Al Huraimel, Group CEO, Bee’ah.

FEBRUARY 2020 7

Al Dhafra Petroleum awards energy contract to SNC-Lavalin

Abdullah Aldubaikhi, CEO, Bahri.

Bahri extends liner shipping network to South India n Saudi Arabia’s Bahri has reached a new milestone in its efforts aimed at expanding market footprint and enhancing connectivity with the company’s MV Bahri Jeddah making its maiden call at two of India’s leading ports.

The RoCon vessel arrived for the first time at the Kamarajar Port at Ennore and the Chennai International Terminal at Chennai Port in late December 2019.

Owned and operated by Bahri Logistics, one of Bahri’s five business units, MV Bahri Jeddah will call regularly at Ennore and on an inducement basis at Chennai, offering direct call from South India to US East Coast.

The business unit operates six multipurpose vessels on a regular liner schedule, all uniquely designed to carry project, breakbulk, container and IMO cargoes as well as heavy lifts, special purpose vehicles, and mining equipment in a single voyage.

A ceremony was held on board the vessel to mark this achievement in the presence of officials from Kamarajar Port Trust, MV Bahri Jeddah, and Transmarine Cargo Services, which represents Bahri Logistics in South India in its capacity as a shipping agent.

“With the new port calls, we are strategically positioned to offer our industry-leading logistics and transportation solutions to a wider customer base across the world,” observed Abdullah Aldubaikhi, CEO, Bahri.

One of the top 10 breakbulk carriers in the world, Bahri Logistics has been present in India since 2000. Bahri has firmly established itself as a prominent player in the country’s maritime sector.

8 FEBRUARY 2020

Craig Muir, President, Resources, SNC-Lavalin.

n SNC-Lavalin recently announced that it has been

awarded an engineering services contract from Al Dhafra Petroleum, a joint venture company between ADNOC and the Korea National Oil Corporation and GS Energy.

This contract win is aligned with SNC-Lavalin’s new strategy moving forward to greater growth and engineering services.

Under the nine-month agreement, SNC-Lavalin will provide front-end engineering and design (FEED) services for the second phase of the Haliba field, located in Al Dhafra Petroleum’s concession area in Abu Dhabi’s Western Al Dhafra region.

The project’s aim is to develop surface facilities in an optimized manner to handle long-term production as well as future production prospects near Haliba.

The contract scope of work includes verification of the conceptual studies and design, carrying out FEED to develop surface facilities required for processing production from the main plant and its north and south extension areas, execution planning, and designing facilities to handle production from other close-by prospects.

“This contract is aligned with our focus to leverage our extensive expertise and experience across our comprehensive spectrum of end-to-end services to our clients,” stated Craig Muir, President, Resources, SNCLavalin.

Al Dhafra Petroleum was established in 2014 to explore and develop untapped fields in its concession area by leveraging innovation and an agile operating model to improve efficiency and maximize value.

DP World Sokhna acquires four new sophisticated quay cranes n DP World Sokhna has made progress on its major expansion project through Basin 2 at the Egyptian Port, with the purchase of four new latest advanced quay cranes manufactured by global crane leader Shanghai Zhenhua Heavy Industries Company (ZPMC).

As one of the largest direct investments into the Egyptian economy this year (US$ 520mn), Basin 2 will be operational by the second quarter of 2020 and nearly double capacity at the Port to 1.75 million TEUs annually.

The expansion cements DP World Sokhna’s position as a major gateway for Egypt’s trade, and the only port in the country capable of handling the largest container ships in the world.

Designed to cater to the mega containerships, the cranes are expected to visibly enhance operation capability.

Other upcoming purchases to support the development of Basin 2 include two rail mounting gantry cranes, eight rubber tyre gantry cranes, in addition to land-based equipment such as internal terminal vehicles and terminal trailers.

ZPMC Cranes transported to DP World Sokhna.

W Motors holds ground-breaking for production facility in Dubai Silicon Oasis n HH Sheikh Ahmed Bin Saeed Al Maktoum,

Chairman of Dubai Silicon Oasis Authority (DSOA), recently laid the foundation stone for the W Motors Automotive Facility in Dubai Silicon Oasis, UAE, the first manufacturing facility of its kind in the Middle East with an investment of AED 370mn (US$ 100mn+) .

The groundbreaking event was also attended

by Dr. Mohammed Al Zarooni, Vice Chairman & CEO of DSOA, and Ralph R. Debbas, Founder & CEO, W Motors.

“As Dubai continues to attract foreign direct investments, international tech companies, promising start-ups, and innovative entrepreneurs from around the globe,” affirmed HH Sheikh Ahmed.

The Automotive Facility will see Debbas’ vision of driving the region’s automotive industry become a reality. Spread over an immense 120,000 sqft., the first phase of the project is set to be completed by 2020.

Production of all W Motors vehicles will move to this location including the limited series Fenyr SuperSport, upcoming new vehicles, electric and autonomous models, as well as all vehicles under the company’s Special Projects Division.

W Motors Automotive facility ground-breaking ceremony.

FEBRUARY 2020 9

Air Liquide Arabia’s Yanbu pipeline network commences hydrogen supply n Air Liquide Arabia (ALAR), Saudi Arabia’s leading hydrogen, gas solutions and technologies provider, announced that it is starting commercial operations at its flagship pipeline network in Yanbu, on the West Coast of Saudi Arabia.

The pipeline began supplying hydrogen to SAMREF, a joint venture between Saudi Aramco and Mobil Yanbu Refining Company, a wholly owned subsidiary of Exxon Mobil Corporation.

As one of the Middle East’s leading refineries, SAMREF represents ALAR’s first customer on the 16 km pipeline network which will also start supplying three other major industrial companies in Yanbu Industrial City in the coming months.

The event is also a key milestone for ALAR’s hydrogen production site in Yanbu within Yasref. ALAR will produce the hydrogen supplied to SAMREF from its global-scale hydrogen production site located on the premises of YASREF refinery, a joint venture between Saudi Aramco and China Petrochemical Corporation (SINOPEC).

With its market leading hydrogen infrastructure on both coasts of Saudi Arabia, in Yanbu (in the Kingdom’s Western Red Sea coast) and Jubail (on the Kingdom’s Eastern Arabian Gulf coast), ALAR is not only bringing infrastructure and expertise in gas supply solutions and technology, but also driving local investments, talent opportunities and the development of the local supply chain.

LtoR Francois-Xavier Haulle, General Manager Air Liquide Arabia_ Mohammad N. Al-Naghash, President and CEO YASREF_ Othman Al Ghamdi, President and CEO, SAMREF and Olivier Randet, VP ME and India, Air Liquide.

“ALAR is committed to expand further its investments and deliver further synergies around the circular economy created by its hydrogen pipeline infrastructure,” commented Francois-Xavier Haulle, General Manager, Air Liquide Arabia.

Dubai Customs to host key panel discussions at the WCO Global Conference n Dubai Customs will host a series of

Ahmed Mahboob Musabih, Director General, Dubai Customs.

10 FEBRUARY 2020

high-level panel discussions during the 5th World Customs Organization (WCO) Global AEO (Authorized Economic Operator) Conference in Dubai.

Set to be held from March 10 to 12, 2020 at the Festival Arena, the conference, which is taking place in the Middle East for the first time, will be hosted by Dubai Customs in cooperation with the World Customs Organization (WCO) and the Federal Customs Authority.

The event will feature key sessions and round table discussions covering timely topics, including customs work and the development of a global customs system.

The panel discussions are scheduled to be staged on the first day of the exciting three-day event, which is being organized to provide an international platform for sharing of ideas and exploring

opportunities required to take the flagship AEO programme to the next level.

One of the panel discussions will focus on the important role of customs, government agencies, and intergovernmental institutions involved in international trade and supply chain security in the success of the AEO program.

“We need to establish a strong partnership among relevant authorities to ensure effective and efficient response to supply chain security challenges,” stated Ahmed Mahboob Musabih, Director General, Dubai Customs.

The conference is seen to drive the global customs sector as well as strategically contribute to the fulfillment of Sustainable Development Goals 2030. The World Customs Organization represents 183 Customs administrations across the globe.

Saudi Arabia’s TAQA and UAE’s AlMansoori announce new agreement n Saudi Arabia’s Industrialization and Energy Services

Kia Motors’ CEO Han-Woo Park unveiling Plan S in Seoul.

Kia Motors ‘Plan S’ strategy to spearhead transition to EV by 2025 n Kia Motors Corporation has announced details of ‘Plan S’, its mid- to long-term strategy aimed at progressively establishing a leadership position in the future automotive industry, encompassing electrification and mobility services, as well as connectivity and autonomy.

The ‘Plan S’ strategy outlines Kia’s preemptive and enterprising ‘shift’ from a business system focused on internal combustion engine vehicles toward one centered on electric vehicles and customized mobility solutions.

The company’s ongoing brand innovation and profitability enhancement will support the two-track Plan S strategy targeting the shift toward electric and autonomous vehicles as well as mobility services.

By the end of 2025, Kia plans to offer a full line-up of 11 battery electric vehicles. With these models Kia is looking to achieve a 6.6% share of the global EV market (excluding China), while also attaining a 25% share of its sales from its eco-friendly cars.

With the global EV market expected to gain strength by 2026, Kia is aiming for 500,000 annual EV sales and global sales of one million eco-friendly vehicles (excluding China).

Alongside these objectives, Kia will offer EV-based mobility services as part of its new business model, helping solve global urban problems such as environmental pollution.

In the Purpose Built Vehicle (PBV) market, anticipated to grow on the back of expanding car-sharing and e-commerce businesses, the company will secure leading-edge competitiveness.

Plan S will see Kia Motors invest a total of 29 trillion won (US $25 billion) by the end of 2025 to establish leadership in vehicle electrification and diversify its business.

“As the auto industry undergoes turbulent changes, today is also an opportune time for Kia Motors to radically transform itself into a global enterprise dedicated to spearheading customer value-led innovations,” stated Kia Motors President and CEO, Han-Woo Park.

Company (TAQA) recently announced the signing of an agreement with Abu Dhabi-headquartered AlMansoori Petroleum Services (AMPS).

The announcement was made at the opening of this year’s International Petroleum Technology Conference (IPTC), taking place for the first time in the Kingdom of Saudi Arabia being held under the patronage of HRH Prince Mohammed Bin Salman Bin Abdulaziz Al-Saud, Crown Prince, Deputy Prime Minister and Minister of Defence.

Khalid Nouh, CEO, TAQA The agreement establishes an alliance between TAQA and UAE-based AlMansoori Petroleum Services to provide high-end fully-integrated fracturing or fracking and stimulation solutions, through combination of both companies’ respective expertise and capabilities in geoscience and engineering, well-site management, well testing and flowback among other operations.

The deal allows both companies access to the growing hydraulic fracturing market which is forecasted at more than SAR 2bn (US$ 533mn) in 2020.

“The alliance with a world class OFS (oilfield equipment and services) company such as Al Mansouri will expand TAQA’s capabilities and allow us access into the integrated stimulation FRAC market of Saudi Aramco, and will provide our customers with world class capabilities from a new supplier,” commented Khalid M. Nouh, Chief Executive Officer, TAQA. “As a leading home-grown company in our field founded in the UAE, we are delighted to be working with TAQA. We look forward to working together to create triple win: for us, for TAQA, but, most importantly, for Saudi Aramco,” remarked Nabil Al Alawi, CEO, AlMansoori Petroleum Services.

TAQA, established in 2003 as a Saudi Arabian joint stock company with the Public Investment Fund (PIF) as a majority shareholder, is a leading provider of superior end to end oilfield solutions for the regions’ energy industry. It delivers equipment across the entire upstream value chain in Saudi Arabia.

FEBRUARY 2020 11

2020 BVMW General Assembly marks cooperation with Turkish Airlines n Held recently in Berlin, the capital of

M. Ilker Ayci, Turkish Airlines Chairman of the Board and the Executive Committee

n Abu Dhabi Islamic Bank (ADIB) has

signed an agreement to provide a US$ 80MN Shariah-compliant ‘Ijarah’ facility to Oman Shipping Company (OSC), a member of the ASYAD Group, for the financing of two VLCCs (Very Large Crude Carriers) tankers.

The transaction represents OSC’s first Shariah-based leasing ‘Ijarah’, as well as ADIB’s ongoing commitment and ability to finance significant assets in the marine and energy sectors.

“Over the years ADIB has been able to add significant value to partners across a wide range of innovative structures in terms of both bilateral and syndicated facilities,” stated Christopher Phillips, Head of Ship Finance, ADIB. “ADIB’s team were able to provide a competitive loan facility which served our needs, allowing us to finance two VLCC tankers and further support our expansion plans,” noted Michael Jorgensen, Chief Financial Officer and Acting Chief Executive Officer, OSC.

12 FEBRUARY 2020

Germany, the BVMW (German Association for Small and Medium-Sized Businesses) General Assembly was the meeting point for many entrepreneurs, political leaders, CEOs and prominent names of their respective fields.

Turkish Airlines was also in attendance as the company’s ties with the German organization were highlighted by the speech of M. Ilker Ayci, Turkish Airlines Chairman of the Board and the Executive Committee.

Following the declaration of intent signed between Turkish Airlines and BVMW last year, global carrier continued its commitment to this strategic partnership.

BVMW and its vast network of members can enjoy the exclusive advantages when

flying with Turkish Airlines for their travels around the globe with the extensive flight network of the global carrier that includes 318 international destinations in 126 countries, more than any other airline.

“Turkish Airlines and BVMW have formed a relationship on a strategic level and member companies can now enjoy exclusive advantages when flying with Turkish Airlines for their trips all over the world. This special relationship will further improve in the years to come as Turkish Airlines and BVMW have both the will and means to work even closer,”remarked M. Ilker Ayci.

Turkish Airlines also plans to open a dedicated communications line for the members of BVMW in order to allow them to take advantage of the benefits provided by the agreement.

Oman Shipping Company receives US$ 80mn financing from ADIB

ADIB and Oman Shipping Company officials at the deal signing ceremony.

Founded in 2003, OSC is today an international full-scale shipping company having a well-diversified fleet of 53 modern vessels (owned and chartered-in) and is a leader in shipping transportation services.

The company’s business investments and growth strategy are closely aligned with the strategic maritime transportation interests of the Sultanate’s rapidly industrialising economy.

Veolia breaks ground on major new utilities facility in Saudi Arabia

Bader Al Lamki, CEO, Tabreed

Tabreed set for growth in 2020 n UAE-based National Central Cooling Company (Tabreed) CEO Bader Al Lamki, is bullish about further growth for the company in 2020, and is exploring new opportunities in Saudi Arabia, Egypt, Oman and India.

The UAE public joint stock and DFM-listed company was established in June 1998 and is now one of the world’s largest district cooling utilities.

Tabreed has 75 ongoing projects in the region with 65 in the UAE. The infrastructure projects include Sheikh Zayed Grand Mosque, Yas Island, Dubai Metro, Dubai Parks and Resorts, Jabal Omar Development in the Holy City of Makkah, Aramco in Dhahran, King Abdullah Financial District in Riyadh and Bahrain Financial Harbour in Manama.

Apart from big plans for Saudi Arabia, Tabreed is also eyeing new markets in India, Egypt and Kuwait. The company increased its stake in its subsidiary Saudi Tabreed to 28 percent anticipating good potential consistent with the ambitious projects emanating from the grand Saudi Vision 2030.

Tabreed reported a 20.8 percent increase in its third-quarter 2019 net income as revenues climbed on the back of new customer connections. Revenues for the reporting period climbed 3.8 percent year-on-year to AED 456m (US$ 124 mn).

“Tabreed is committed to providing energy-efficient and sustainable cooling solutions that have become an integral part of the infrastructure for major developments across the region,” affirmed Al Lamki.

The company has recently commenced supplying 12,000 RT (refrigeration tonnes) of cooling services to the expansion of the Galleria Mall on Abu Dhabi’s Al Maryah Island, covering an area of 1.4 million square feet.

The new connection comes as part of Tabreed’s long-term concession, as the exclusive provider of district cooling services for developments on Al Maryah Island through a partnership with Mubadala Infrastructure Partners.

France’s Engie and Abu Dhabi’s Mubadala Investment Company hold stakes in the company.

n Veolia, a leader in optimized resource management and the Royal Commission for Jubail and Yanbu (RCJY) via its investment arm JYIC, have started work for the development of a central utilities and waste valorization plant in the PlasChem Park of Jubail Industrial City.

Designed on a Design-Build-Own-Operate model, the plant will be operational by September 2021. It will feature an incineration annual capacity of 60,000 tons, along with advanced technology and environmental compliance systems based on Veolia’s extensive international experience as a resource management specialist. Veolia operates 29 hazardous waste incinerator lines world-wide.

The commencement of the project was announced

by HE Mustafa Mohammed Al Mahdi, CEO, Royal Commission of Jubail and Yanbu, and Sébastien Chauvin, CEO, Veolia Middle East, during an unveiling ceremony held at the development site. Dr Faisal Al Faqeer, CEO, Sadara, was also present to witness the occasion.

“This project is a top priority for us and we are keen to accomplish it at the earliest and with minimal effort,” stated Al Mahdi.

“Once operational, the facility will be able to safely treat and produce energy from industrial waste sources that can then be offered to companies active in the industrial park,” affirmed Chauvin.

Stemming from an agreement signed between Veolia and the Sadara Chemical Company (Sadara) back in December 2018, the sustainable industrial waste-toenergy facility currently in development will be located adjacent to the Sadara Chemical Complex and will receive Sadara waste streams at the opening of the plant.

Veolia, RCJY and Sadara officials at the inaugural ceremony on Jubail Industrial City, KSA.

FEBRUARY 2020 13

Eni announces onshore gas and condensate discovery in Sharjah n Italian energy giant Eni announces a gas and condensate discovery in the Mahani exploration prospect located onshore in the Area B Concession of Sharjah (UAE), which was awarded to Eni in the first International Competitive Exploration Licensing Round conducted by the Petroleum Council of Sharjah a year ago.

The Mahani-1 was drilled to a total of 14,597 feet measured depth. The well encountered a thick gas-bearing limestone reservoir. The well was tested with flow rates up to 50 Mscf/d (million cubic feet per day) of lean gas and associated condensate.

The size of the discovery will be further assessed with additional appraisal drilling.

Eni holds a 50% stake in the Concession Area B with SNOC, the Sharjah National Oil Company, holding the remaining 50%

and acting as Operator. Eni’s presence in the Middle East has continued to grow during the last couple of years.

The current exploration acreage in the UAE alone amounts to more than 12,000 square kilometers gross, comprising the onshore of Sharjah and offshore areas of Abu Dhabi and Ras Al Khaimah.

Eni has been present in Abu Dhabi since 2018 and today holds three offshore development and production concessions and two offshore exploration concessions.

Eni’s current equity production in Abu Dhabi is around 50,000 bbl/day. Eni is also a shareholder with a 20% equity interest in ADNOC Refining. Eni in the Middle East is also present in Bahrain, Oman, Lebanon and Iraq with both exploration and development activities.

Dubai Government Workshop inks MoU with Al-Futtaim Toyota n Dubai Government Workshop

(DGW) has signed a Memorandum of Understanding (MoU) with Al-Futtaim Toyota for the maintenance of its fleet of Toyota vehicles.

The agreement illustrates the shared commitment of both parties to ensure the delivery of safe vehicles and provide leading services in the emirate, in line with Dubai Plan 2021.

“Our partnership has allowed us to exchange expertise and technical capabilities, provide the latest innovations and emerging technologies in the automotive world and develop services in line with our current and future requirements,” commented Fahad Ahmed Al Raeesi, Deputy CEO, DGW. “This partnership emphasizes both our organizations’ commitment to unwavering quality when it comes to servicing, maintenance and consequentially safety and satisfaction,” stated Saud Abbasi, Managing Director, Al-Futtaim Toyota.

14 FEBRUARY 2020

Al Futtaim Toyota and Dubai Government Workshop officials at the signing ceremony.

Transguard to transport TRIGEM diamonds n Transguard, a leading UAE security and logistics firm, has recently signed an agreement with TRIGEM DMCC, an independent diamond service company, to provide exactly that – secure transport services.

TRIGEM Charlotte Boiling, set to launch in February 2020, is a joint venture between TRIGEM DMCC in Dubai and Charlotte Quality Boiling in Antwerp, Belgium. It offers boiling services to mining companies worldwide and to diamond traders in Dubai.

Diamond traders can now drop off their wares at Transguard’s offices in Almas Tower, DMCC six days a week and pick it up the next day, after the stones have been processed by TRIGEM. This complements Transguard’s services tailored for its large clientele base of diamond traders based in DMCC. The firm offers special logistics and preferred prices to TRIGEM’s customers worldwide and its global partners.

“By partnering with Transguard, the most respected security provider in the UAE, along with being located in one of the safest countries in the world, we know this partnership will offer a level of security to TRIGEM Charlotte Boiling customers,” commented Shaikh Ahmed Bin Manna Bin Khalifa Saeed Al-Maktoum, Partner at TRIGEM DMCC. “Managing secure logistics and solutions for high-end valuables requires another level of expertise and experience, which is why we’re the trusted partners for hundreds of businesses in the UAE,” remarked Dr. Abdulla Al-Hashimi,

Shaikh Ahmed Bin Manna Bin Khalifa Saeed Al-Maktoum(L), Partner at TRIGEM DMCC, and Dr. Abdulla Al-Hashimi, Divisional SVP EK Group Security.

Divisional Senior Vice President Emirates Group Security and CEO Transguard Group.

With Transguard’s new transport service, TRIGEM Charlotte Boiling will be able to process and deliver over 1.4 million carats of diamonds per month.

Hino bags order for delivery of 150 trucks to Dubai PepsiCo bottler n Al-Futtaim’s Commercial Vehicle Division, exclusive distributor of HINO trucks in the UAE, has announced that is has delivered a major order of 150 Light Duty HINO 300 series trucks to Dubai Refreshment Company, local bottler and distributor of PepsiCo Beverages in Dubai and the Northern Emirates.

This new agreement further extends HINO’s association with PepsiCo bottler in Dubai which will use the new trucks to boost its fleet of refreshment delivery trucks in the UAE. “The 150 HINO trucks are tailor-made to enhance PepsiCo beverages’ delivery operations in the UAE, and we have coupled the delivery with eco-driving training sessions to help the fleet users drive more efficiently and improve their road safety,” remarked Ramez Hamdan, General Manager, HINO, Al-Futtaim’s Commercial Vehicle Division.

“We chose HINO trucks for their quality, performance and fuel efficiency, as they adhere to Euro-4 emission standards, helping our operations to have a positive impact on the environment, in line with our commitment to support the UAE government’s 2021 vision,” stated Tarek ElSakka, CEO, Dubai Refreshment Company.

Conforming to UAE safety standards, HINO has partnered with GORICA for the customization of the body of the trucks to suit the specialized needs of Dubai Refreshment Company – local PepsiCo bottler.

FEBRUARY 2020 15

EGA’s Guinea Alumina Corporation ships one million tonnes of bauxite n Emirates Global Aluminium recently

A speaker at the GIAS Conference 2020.

GIAS 2020 concludes on a high note n The second edition of the Global Investment in Aviation Summit (GIAS 2020) concluded on a high note, after three days of constructive discussions on the changing aviation landscape due to rapid technological advances and the Fourth Industrial Revolution that will shape the future of industry in the upcoming decades.

The event was organised by the General Civil Aviation Authority (GCAA) under the theme ‘Enabling global aviation growth through fundraising and key partnerships’. The 2020 edition featured a line-up of interactive panel discussions that engaged top industry experts from more than 57 countries from all around the world.

The GIAS 2020, one of the world’s most influential knowledgesharing platforms for the airline industry, attracted more than 1000 representatives from various entities including: Government officials, speakers, delegates, experts, media representatives, academics and 120+ corporate investors.

The three-day event spotted light on pressing topics including smart airports and sustainability, airport privatization models, successful business models, airport future solutions, airport finance and ways to channel more investment into the sector, amongst other topics.

The third and final day of GIAS 2020 saw four panel discussions, the first of which was ‘Woman Entrepreneurship in Aviation: Global Leaders and their Visions’.

The second session titled “How will Urban Mobility shape aviation Investment? A necessary Outlook to Avoid Being Left Behind”, discussed how to pump capital into the industry, the issue of looking for stable destinations and markets, as well as the most successful tools in guiding and developing the aviation industry.

HE Saif Mohammed Al Suwaidi, Director General of GCAA, thanked top government officials, high-level delegates and giant airline companies for their active participation and contributions to the summit.

announced that its bauxite mining subsidiary Guinea Alumina Corporation has shipped one million tonnes of bauxite ore since exports began in August.

GAC is currently ramping up production, which is expected to reach some 12 million tonnes per year.

“We are making good progress with our production ramp-up in Guinea, with mine, rail and port facilities all performing as planned.

Our priority throughout ramp-up and for the decades of production ahead is the safety of the 1,000 staff and contractors who work at GAC,” stated Abdulnasser Bin Kalban, CEO, EGA. Bauxite is the ore from which aluminium is derived and is refined into alumina, the feedstock for aluminium smelters.

EGA supplies GAC bauxite to third party customers, including in China and India.

EGA invested some $1.4 billion to develop GAC, one of the largest greenfield investments in the Republic of Guinea in the past 40 years.

GAC, and Al Taweelah alumina refinery in Abu Dhabi which began production in April, expand EGA’s business upstream in the aluminium value chain. The projects create new revenue streams for EGA and help secure the supply of raw materials EGA needs at competitive prices.

A GAC employee in the Republic of Guinea.

16 FEBRUARY 2020

Strata delivers first Pilatus flap track fairings shipset n Strata Manufacturing (Strata), the advanced composite aero structures manufacturing facility wholly-owned

by Mubadala Investment Company, is celebrating the delivery of its first shipset of Flap Track Fairings for the PC-24, the twin-engine Super Versatile Jet produced by Pilatus Aircraft Ltd of Switzerland.

The delivery of the first shipset of Flap Track Fairings comes within eight months following the agreement between the two companies and affirms Strata’s position as the major supplier of both Belly and Flap Track Fairings for the world’s first ‘Super Versatile Jet’.

Flap Track Fairings are designed to enhance the aerodynamic of the aircraft, reduce drag and improve appearance.

“The successful delivery is testament to Strata’s determination to fulfil its commitment and firm resolve to deliver such products to customers within worldclass standards, and our ‘Made with Pride in the UAE’ seal is raising the bar of quality benchmarks in the aerospace supply chain,”

Strata Manufacturing, led by CEO Ismail Ali Abdulla, marks another historic milestone with the delivery of the first Pilatus PC-24 FTF shipset comprising 22 components. stated Ismail Ali Abdulla, CEO of Strata.

The partnership between Strata and Pilatus began in April 2018 when the two companies signed a long-term agreement to manufacture the PC-24 Belly Fairings.

“The delivery of the first complete PC24 Flap Track Fairing shipset in just eight months after contract signature in May last year is a very significant milestone that again demonstrates the capabilities and

performance of Strata,” remarked Roman Emmenegger, VP Manufacturing at Pilatus Aircraft Ltd. Strata works with leading aircraft manufacturers, including Airbus, Boeing, Leonardo, and Pilatus. Based at Nibras Al Ain Aerospace Park, Strata supports the development of a leading aerospace hub in Abu Dhabi as part of the emirate’s economic diversification initiatives.

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Web: www.tranzone.ae FEBRUARY 2020 17

UPS simplifies international shipping for Middle East customers with website upgrade

Emerson re-named ‘Industrial IoT Company of the Year’

n Emerson, a global automation technology and

n UPS has launched a significant upgrade to its shipping website, by making the process of creating an international shipment smarter and easier for its small and medium business (SMB) customers in 116 countries, including 36 countries in the Indian subcontinent, Middle East and Africa (ISMEA).

“With SMEs contributing over 40% of GDP in emerging economies, there is no doubt about the huge potential this sizable and fast-growing segment possesses,” stated JeanFrancois Condamine, President, High Growth and Emerging Markets, UPS. Set to take effect in phases throughout 2020, it will help simplify international shipping by guiding customers through the process and by providing proactive insight into total landed costs, including duties and taxes.

“Despite the incredible growth of e-commerce sales across the globe, estimated to hit US$ 6.5 trillion by 2023, we know that many companies are hesitant to trade internationally due to the complexity of cross-border shipping,” said Nando Cesarone, President, UPS International.

18 FEBRUARY 2020

engineering company, has been named the “Industrial IoT Company of the Year” by IoT Breakthrough for an unprecedented third consecutive year.

The honour recognizes Emerson’s commitment to helping customers in industries such as chemical, life sciences, power, and oil & gas define a practical and successful path to digital transformation.

Emerson recently introduced a new, dedicated digital transformation business that combines Emerson’s leading sensing technology, operational analytics and broad services capabilities to deliver targeted digital solutions to customer challenges.

Winners were selected by a panel of senior-level professionals experienced in the IoT space, including journalists, analysts and technology executives.

The IIoT space is crowded and can be confusing, so the goal of this organization is to help customers achieve measurable business improvement through a focused strategy and relevant technologies,” said Stuart Harris, group president for Emerson’s digital transformation business. “This award reinforces our leadership with capabilities that are proven to deliver measurable results.”

“The industrial IoT market is inundated with confusing promises and complex issues as organizations look to embrace innovation and new technology while leveraging their existing investments,” said James Johnson, managing director at IoT Breakthrough.

www.logisym.org

8 June 2020 Jumeirah Creekside Hotel

Logistics Gateway Dubai BEYOND 2020 Learn: How Dubai will shape up to retain its regional logistics and distribution gateway role beyond 2020.

Topics discussed by industry leading speakers n Logistics infrastructure developments n Multi-modal freight hub Dubai n Regional E-commerce retailing n Robotics and automation n Big Data in logistics Europhia Consulting is the regional partner of Logisym Dubai. Connecting leading logistics and supply chain solutions to the UAE. www.europhia.com

Jason Verhoven M: +971 50 6543876 E: jason@signaturemediame.com

Emirates Skycargo expresses cautious optimism for 2020 Emirates Skycargo — Looking Forward

At the start of a new year, Emirates SkyCargo is geared up to facilitate global trade and cargo movement in 2020 and the carrier well positioned to support trade for Dubai Silk Road Project.

A

t the threshold of the new year, Emirates SkyCargo is well poised and positioned to perform well in 2020 and beyond through a combination of innovative product development and investment in ‘fit for purpose’ infrastructure.

“The global air cargo industry witnessed what was a very challenging year in 2019.

However, the tough market conditions were an opportunity for us to review our core offering to our customers and ensure that we remained market leaders with our specialised product offering, superior capabilities and infrastructure as well as our agility in responding to customer demand,” said Nabil Sultan, Emirates Divisional Senior Vice President, Cargo.

“The outlook for 2020 is more positive with the air cargo industry set to post a modest recovery thanks to improved economic activity and trade growth,”he continued.

“Emirates SkyCargo is well positioned to support trade and economic growth in line with the Dubai Silk Road Project.

With Expo 2020 Dubai also set to kick off in October 2020, we will see a surge in

20 FEBRUARY 2020

movement of goods to and from Dubai and we are working with our partners to provide specialised air freight services for this once in a lifetime event,”he added.

Specialised Products In 2019, Emirates SkyCargo continued to roll out specialised products catered for specific industry verticals.

Emirates Delivers is a new e-commerce platform that enables consumers, both individuals and small businesses, to purchase products from any US based online retail store and have it delivered in the UAE. Emirates Delivers is part of Emirates SkyCargo’s broader strategy to promote Dubai as an e-commerce fulfillment hub for customers based in the Middle East, Asia and Europe. In 2020, the availability of Emirates Delivers will be expanded to more markets.

Other products from the Emirates SkyCargo portfolio showed a strong performance despite challenging market conditions.

• More than 400,000 tonnes of perishables were flown on Emirates’ flights under

Emirates Fresh, Emirates SkyCargo’s specialised product for perishables. In November and December of 2019, the carrier operated nine charter flights from Santiago, Chile uniquely for carrying cherries.

• Close to 11,000 high-priority shipments were moved across six continents under the Emirates AOG product during 2019.

• Year-on-year Increase of 6% in the volume of high value goods that were flown under Emirates Safe VAL, Emirates SkyCargo’s product for transportation of precious goods.

• A 12% increase in demand for Emirates Pets, Emirates SkyCargo’s product for transportation of domestic pets.

Emirates Charter In addition to its scheduled passenger and freighter flights, Emirates SkyCargo offers customisable and flexible charter solutions to its global customers. With a responsive and agile team that works to meet customer requirements and set up operations within a short time frame, the carrier has been able to operate close to 370 charters during 2019.

Emirates Skycargo—Looking Forward

Charter operations have helped transport a wide variety of cargo from relief materials for natural disasters and equipment for music concerts to flowers and other perishables.

Fit-for-purpose infrastructure and capabilities In 2019, Emirates SkyCargo unveiled a new handling facility dedicated for pharmaceutical cargo at Chicago airport, one of the most important pharma stations for Emirates SkyCargo across the world. The facility features temperature controlled zones for acceptance and delivery, pharma cargo build up and break down, storage and direct ramp access and is also certified under EU GDP guidelines.

In November 2019, Emirates SkyCargo moved its pharma handling operations at Copenhagen airport to a dedicated GDPcertified facility.

Both initiatives are part of the carrier’s objective to offer enhanced protection for pharmaceutical cargo, not just at the Dubai hub, but from origin to destination under the pharma corridors programme. During 2019, Emirates SkyCargo worked with ground handlers at key pharma origin and destination cities across the world to expand the number of pharma stations from 12 to 25.

With its focus on improved capabilities

More than 307,000 tonnes of cargo were transferred by the trucking system between the two airports in 2019 and process benchmarks through collaboration, the implementation of Emirates SkyCargo’s pharma corridors programme has resulted in an increase in the volume of pharma cargo handled across the carrier’s pharma stations. For example, since the launch of the new facility, Chicago has seen a double digit growth in the volume of pharma cargo transported.

Operations In 2019, Emirates SkyCargo’s SkyCentral terminals in Dubai handled an average four pieces of cargo every second of every hour on a 24X7 basis. Over 700 staff on duty at any time of the day helped process around 360,000 individual packages daily through these terminals enabling Emirates’ fleet of over 270 aircraft move approximately 7,000 tonnes of cargo every day, the equivalent of more than 60 full Boeing 777 freighters, between Dubai and the rest of the world.

A fleet of 49 trucks, including 12 refrigerated trucks, made an average 175 trips daily in 2019 to connect the two cargo terminals. Acting as a seamless conveyor belt

between the two cargo terminals, the trucking system helped connect cargo from touchdown in one airport to take-off at another airport and vice versa in under five hours.

Overall, more than 307,000 tonnes of cargo were transferred by the trucking system between the two airports in 2019 and more than 1.6 million tonnes of cargo over the five years since the start of trucking operations in 2014.

Delivering as Promised Emirates SkyCargo’s commitment to ‘Delivery as Promised’ has since 2018, been reinforced by applying the Cargo iQ framework. Emirates SkyCargo has established a 24/7 operational Cargo Operations Control Centre (COCC) which monitors the progress of shipments across predetermined milestones from acceptance to delivery.

In 2019, the carrier monitored over 1.5 million shipments using Cargo iQ guidelines ensuring that cargo having a direct impact on the lives of people around the world, was transported and delivered on time. n FEBRUARY 2020 21

P&O Maritime Logistics

New synergies to galvanize P&O Maritime’s marine solutions and logistics capabilities Following an acquisition and a subsequent merger, P&O Maritime Logistics is now uniquely positioned and empowered to offer its customers a wide portfolio of value-added marine services including integrated and offshore logistics for energy companies.

I

n July 2019, Topaz Energy and Marine was acquired by DP World, and in Q4-2019 merged with P&O Maritime to create a new fortified entity—P&O Maritime Logistics (POML). The union has further consolidated both the expertise and capabilities of both companies.

The joining of professional forces has strengthened the overall P&O brand which brings with it endurance and a legacy of more than 180 years of maritime history.

With this, POML is uniquely positioned to offer customers a wide portfolio of valueadded marine services including integrated logistics based on advanced data analytics.

Offering a distinctive value proposition to customers, POML will focus on a triad of strategic segments–Offshore, Port Services and Logistics–delivering world-class capabilities across industries, with safety and the environment at the forefront.

A core focus for POML’s will be the further optimisation of offshore logistics for energy companies. With the company’s very robust track record, global clients, diverse assets and knowledge of its customers’ operations, POML is uniquely positioned to continue disrupting this part of the supply chain.

Global Supply Chain (GSC) recently interviewed René Kofod-Olsen, the newly appointed CEO, P&O Maritme Logistics and the former CEO, Topaz Energy and Marine.

In a wide-ranging engagement with Global Supply Chain, Kofod-Olsen affirmed that “through the synergies created by the merger of the two companies, under the DP World umbrella, the POML business is well positioned to grow and build further scale and value for customers and shareholders alike.”

22 FEBRUARY 2020

René Kofod-Olsen

Chief Executive Officer of P&O Maritime Logistics René has over 23 years of experience in the marine industry, having worked in the A.P. Moller-Maersk Group and as CEO of Svitzer Asia, Middle East & Africa. He has held several leadership roles across a variety of multi-cultural organisations and countries. He has also completed an advanced management programme at Harvard Business School.

P&O Maritime Logistics

FEBRUARY 2020 23

P&O Maritime Logistics

Global Supply Chain (GSC): What implications—immediate, short and longterm does this acquisition and new entity (POML) have for the logistics sector in general and energy logistics in particular?

René Kofod-Olsen (RKO): The offshore sector plays a vital role in the energy industry and is in a state of anticipated recovery, with 2020 likely going to be another challenging year. Oil companies, over the past few years, have underinvested due to low oil prices, and investments are now increasing to meet the rising demand– both on new assets and importantly on the maintenance of existing assets which will have an effect on the energy logistics sector.

With this increased demand, industry players also need to invest in their portfolio of services as customers now want a handful of select, trusted, suppliers who can provide much more than one single service. A key challenge for industry players has been the ability to offer our customers a wide portfolio of value-added marine services as our clients’ demands evolve and shift towards a need for a range of services and solutions.

24 FEBRUARY 2020

In this lies our value proposition, as POML is strategically positioned to provide a wide portfolio of services to our customers, be it within a unique segment such as offshore or port services, or an integrated logistics offering with a combination of services. Owing to the integration between the two companies, we will be able to offer it all and drive value for our customers across all seven continents, delivering a difference that matters.

A core focus for POML – which has the potential to radically transform offshore logistics – will be the further optimisation of such offshore logistics for energy companies. With the company’s very robust track record, global clients, diverse assets and knowledge of its customers’ operations, POML is uniquely positioned to continue disrupting this part of the supply chain.

GSC: How have the corporate and professional synergies acquiesced between the two entities—Topaz and POML? RKO: Both Topaz and P&O Maritime were strong, profitable businesses ahead of the

merger. Both entities complement each other very well, and the combined POML business is well positioned to grow and build further scale and value for customers and shareholders alike.

Historically, we have never strived to have the most ships, but we do strive to make the biggest impact for our customers and deliver solid returns for all our key stakeholders, and I am honored and humbled to steward one of the most historic names in the maritime history, the P&O brand, as we expand on our service offering and enter this new chapter.

GSC: What are your priorities for POML? RKO: Our customers are the absolute priority in everything that we do and I’m adamant that whatever activities and projects we undertake, they must contribute to making life easier or better for our customers – otherwise we won’t do them.

On a strategic level, a core focus for POML will be the further optimisation of offshore logistics for energy companies.

With the company’s very robust track

P&O Maritime Logistics

record, global clients, diverse assets and knowledge of its customers’ operations, POML is uniquely positioned to continue disrupting this part of the supply chain.

GSC: Expand on the scale factor as a result of the merger?

RKO: P&O Maritime Logistics is strategically positioned to provide a wide portfolio of services to our customers, be it within a unique segment such as offshore or port services, or an integrated logistics offering with a combination of services. Owing to the integration between the two companies, we will be able to offer it all and drive value for our customers across all seven continents, delivering a difference that matters.

GSC: What are the USPs and strengths of the new POML? RKO: Our industry is constantly changing and evolving. Customers now want a handful of select, trusted, suppliers who can provide much more than one single service. P&O Maritime 26 FEBRUARY 2020

Logistics will focus on three key segments – offshore, port services and logistics.

What distinguishes us in the industry is our unique value proposition and our ability to offer our customers a wide portfolio of value-added marine services and to integrate these offerings - always with safety and the environment at the forefront.

With the establishment of P&O Maritime Logistics we now have an organisation that can deliver world- class capabilities across industries - be it our core focus areas of energy, transportation or port logistics customers.

GSC: What are your expansion plans?

RKO: A core focus for POML will be the further optimisation of offshore logistics for energy companies. With the company’s very robust track record, global clients, diverse assets and knowledge of its customers’ operations, POML is uniquely positioned to continue disrupting this part of the supply chain and growing with our clients through this.

We have never aimed to have the most ships – we do, however, strive to make the biggest impact for our customers and other stakeholders with each ship in our fleet.

GSC: How do you assess your role in your new position as CEO, POML? RKO: Following DP World’s acquisition of Topaz and its merger with P&O Maritime, I have been asked to lead the consolidated global company-P&O Maritime Logistics.

I am both honoured and humbled to have been selected to lead the company through its next phase of growth.

Having held leadership roles in the shipping industry for more than two decades, I have a clear idea of how I want the company to run, and my aim is that we exhibit empowered leadership in every role throughout the organisation - whether it’s leading other people, projects or specific activities.

In a nutshell I believe that with an equal portion of the following three ingredients;

P&O Maritime Logistics

solid judgment, acute situational awareness and empathy, there are few situations one will not be able to navigate through. These are my leadership beacons, and it’s how I hope we can continue to sail our business forward.

GSC: You have appointed a core team of four high-powered executives to constitute the ‘Executive Committee’.

What is your mandate for the Committee?

RKO: I have appointed an Executive Committee of four excellent individuals, who are each responsible for one of the major functions of the company and who support me in managing the day-to-day operations of POML’s business.

GSC: Where (which geographies) specifically do you foresee growth opportunities and why?

RKO: Whilst the company is headquartered in Dubai, POML has operations globally.

Each market presents a different opportunity for us, and since our focus is in three service segments – offshore, port services, and logistics–we are well positioned to add value to our customers across all seven continents.

Within offshore, I have previously stated that we see significant opportunities both in the Caspian, Africa and in the Middle East, which we are very excited about.

We are also excited to be growing our subsea business, primarily focusing on the inspection, maintenance and repair segment of that market.

A core focus for POML will be the further optimisation of offshore logistics for energy companies. With the company’s very robust track record, global clients, diverse assets and knowledge of its customers’ operations, POML is uniquely positioned to continue disrupting this part of the supply chain and growing with our clients through this.

GSC: What role will new and emerging technologies play in POML’s operations?

RKO: We realised, a long time ago, that the entire industry needed to change and started by changing our own perspectives.

We needed to diversify investment into our own businesses, in order to remain relevant, and create value. Our customer demands are increasingly shifting towards advanced services, and in response we began to digitise aspects of our service offering and built advanced algorithms to optimise the

supply chains of our customers.

For example, by having real-time visibility of vessel locations and applying advanced routing systems, we are able to provide our clients with better, more reliable updates on delivery of cargo. This has optimised their supply chain by improving project scheduling, reducing downtime and the need for manpower and support services.

Additionally, we have worked with several of our key customers to integrate data into their systems, also allowing us to learn more about our customers, thereby enhancing our service offering to cater to even more aspects of their businesses.

Digital is disrupting companies from their service offering through to their operations and maintenance. From customer

The offshore energy sector will be around for many decades to come – also servicing the hydrocarbon industry, as oil and gas will remain part of the energy mix for many years. dashboards providing customers real-time insight into the state of their operations, to the use of ‘Internet of Things’ to learn more about the state of our vessels, we see IT as a driver of both the topline and of cost reductions.

Having continuously invested in the IT of our fleet, we are now reaping the benefits – and so are our customers. Beyond the benefits I’ve already discussed, being able to manage maintenance of our fleet based on the condition of the machinery, we are able to improve technical uptime and operational stability, as well as reduce costs.

Last year, we teamed up with GE Baker Hughes to pioneer lube oil analysis in the marine space. This analysis can tell us a great deal about the condition of our ships – from detecting the presence of water and foreign particles, to changes in temperature, which can give insight into the likelihood of equipment failure in the motor, gearbox and propellers.

While it previously could take up to six

weeks to receive results from a lube oil analysis, with digitisation, this process can now take place in real time, enabling maintenance to become predictive, which in turn leads to a reduction in unscheduled downtime and repair work.

GSC: Your fortunes are inextricably linked with the energy sector. What is your take on the energy sector with regard to the regulatory mechanisms, ecology concerns and geopolitical developments?

RKO: The OSV (offshore support vessel) survivors of the recent downturn, include those organisations that were willing and able to make changes to reset their businesses and strategies to a new market.

In the past, for example, we would generically charter out our vessels on a day rate, generally for a short duration of time, and had limited control over routing or cargo. Since 2012, we moved further away from this strategy, and we accelerated those change strategies at the outset of the current downturn in anticipation and to remain in control of our own future.

We aggressively reduced costs, but also dared to position ourselves to be an even stronger partner to our clients – moving with them in the rapidly-changing marketplace to add value through distinct, more tailored services and solutions.

Our transformation was tough – we had to change the mindset of our entire organisation in parallel with just surviving – but I believe it provided us with the foundation for a competitive edge. That is how we adapt to the offshore energy sector, and it is how we will survive.

On the energy sector as a whole, the world needs to realise that the offshore energy sector will be around for many decades to come – also servicing the hydrocarbon industry, as oil and gas will remain part of the energy mix for many years. I believe that we need to encourage an informed debate about exactly that – the energy mix.

We certainly want to move towards renewable sources of energy, but at the same time need to cater for a growing demand for energy around the world. In this balance, we need to move away from the most carbon intensive fossil fuels – for example coal – and move to cleaner sources such as gas, while the whole energy infrastructure of the world transforms and scales up for renewables. n FEBRUARY 2020 27

Momentum Logistics

UAE-based Momentum Logistics launches operations in US

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In a new first, specialised 3PL provider now supports Gulftainer’s GT USA-Wilmington operations

omentum Logistics, a subsidiary of Gulftainer, the world’s largest privately owned independent port operator, headquartered in the UAE, has launched operations in the US State of Delaware in a bid to support Gulftainer’s US subsidiary GT USAWilmington.

Momentum Logistics–Delaware is set to significantly reinforce the global presence of the parent company based at the Sharjah Inland Container Depot (SICD).

With operations spanning the Middle East and the USA, Momentum Logistics aims to provide its complete suite of supply chain management solutions to the GT USA-Wilmington entity in Delaware.

“This is the first venture for Momentum Logistics in Delaware, USA. The homegrown company has established an award-winning record in transportation, freight forwarding, warehousing and container services in Gulftainer ports throughout the Middle East, and it now seeks to replicate that success in the USA,” affirmed Peter Richards, Group Chief Executive Officer, Gulftainer.

Momentum Logistics’ services include Freight forwarding, a one-stop solution that includes air freight, ocean freight, customs clearance and land transport; Warehousing, which capitalizes on the Port of Wilmington’s six refrigerated, state-of-the-art cold storage warehouses, 800,000 square feet of dockside cold storage in six warehouses, two state-

28 FEBRUARY 2020

of-the-art dry cargo warehouses totalling 250,000 square feet, and less-than-container load (LCL) facilities Additionally, it also offers container repair, undertaken through Gulf Container Repair (GCR), one the largest container sales and trading companies in the Middle East that specialises in container conversions and modifications Momentum Logistics was established in December 2008 to support Gulftainer’s terminal operations. Since its inception, the company has expanded its scope and secured independent logistics contracts around the world.

In 2019, Momentum Logistics received the International Safety Award from the British Safety Council and the Silver Award at the RoSPA, as well as Gold for Fleet Safety at the RoSPA Awards.

In addition, Gulftainer obtained the RoSPA Gold Award that acknowledges exceptional levels of occupational health and safety in 2018 and 2019. In 2017, it won the ICT Achievement Award for Logistics Deployment of the Year and the Logistics Middle East Award for Technology Implementation of the Year.

Global expansion In the UAE, the company operates three main ports on behalf of the Sharjah Port Authority – Sharjah Container Terminal (SCT), Khorfakkan Container Terminal

(KCT) and Hamriyah Port. Its flagship terminal, the award-winning KCT, is recognised as one of the most productive container terminals in the world.

In March 2019, Gulftainer introduced the Sharjah Port of Trade (S.P.O.T.) service, a new strategic sea cargo clearance proposition in the UAE. It also offers facilities for on-site cargo inspection, quality sampling and testing services at the importers’ premises.

Globally, the Gulftainer Group operates and manages ports and logistics businesses in several countries, including Iraq (Iraq Container Terminal, Iraq Project Terminal, Iraq South Terminal and Umm Qasr Logistics Centre), Pakistan-Gwadar (GTL-MTI) and Lebanon (Tripoli Container Terminal).

In Saudi Arabia, Gulftainer is the majority shareholder in Gulf Stevedoring Contracting Company (GSCCO), which manages and operates the Northern Container Terminal in Jeddah, Jubail Industrial Port and Jubail Commercial Port.

The company’s first USA facility, Canaveral Cargo Terminal in Florida, opened in June 2015 following the signing of a 35-year agreement that made Gulftainer the first and only port management company from the Middle East to operate in the country.

The company aims to expand its global portfolio in the next 10 years to receive more than 10,000 vessel calls and triple its containerhandling capacity to 15 million TEUs. n

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Smart Cities are cities of the future accompanying the Fourth Industrial Revolution Opinion Piece: Smart Cities

HE Mohamed Al Khadar Al Ahmed, Executive Director of Strategic Affairs, the Department of Municipalities and Transportation ( DMT), Abu Dhabi and General Coordinator of the World Urban Forum, deliberates on the cities of the future and the impact of urbanisation in the establishment of Smart Cities.

He shares his thoughts ahead of and in the run up to the tenth session of the World Urban Forum (WUF10) was held in the UAE capital from 8-13 February 2020.

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he Fourth Industrial Revolution is characterised by a considerable surge in new digital technologies and artificial intelligence. This trend has created a significant impact upon urbanisation and has played an essential part in the establishment of Smart Cities.

With innovation harnessing enhancements across numerous areas of modern life, it is natural that technological advancements are applied to the places closest to us, in our homes and communities.

The tenth session of the World Urban Forum (WUF10) will outline the importance of establishing smart sustainable cities. Abu

30 FEBRUARY 2020

Dhabi is hosting the tenth session of the forum in partnership with UN-Habitat, an event that took place in the second week of February 2020, under the patronage of HH Sheikh Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces.

Abu Dhabi will be the focus of attention for those interested in sustainable urban development during WUF10, as the city draws in experts in the smart and sustainable cities industry around the world. After announcing that more than 100 ministers and about 20,000 people from more than 160 countries will be hosted, we planned a series of discussions

solely focused on sustainable smart cities, as a central thread of the forum’s agenda throughout its six days.

Sustainability is technology Sustainable cities of the future can be defined as those that have the latest facilities in technology, buildings, renewable energy generation solutions, and environmental conservation. The sustainability of cities will contribute towards positive progress of future societies, as they become more developed and civilised on the path to sustainable development.

Opinion Piece: Smart Cities

within the sustainable urban industry to apply their respective expertise in creativity of design and sustainable planning.

Harnessing technology Crucially, the forum will seek to harness technology and smart solutions to enrich infrastructure interconnection, enhancing its efficiency and boosting its effectiveness.

The Emirate will do so in a manner that supports the elements of sustainability.

The tenth session of the World Urban Forum represents a global platform around which major companies and institutions involved with developing advanced infrastructure from all countries of the world, as well as major investors, entrepreneurs, and people of creative ideas, will contribute towards the creation of plans and features for future cities in terms of technology, environment, economic, and other related fields.

These diverse and complementary perspectives and the resulting ideas and cooperation are the true value of the forum and are a reflection of Abu Dhabi’s position as a prominent global destination for innovation, excellence and creativity.

Keeping up with urbanisation One of the aspects of urban development accompanying the technical boom is that cities are established in line with the needs of people, not the other way around, to achieve the equation of smart transformation. This way, smart cities become compatible with development while maintaining their originality and their social, economic and environmental characteristics.

Smart cities are data-dependent and address economic or social challenges to achieve sustainable development. Such data underpins sustainable city planning and inspires future foresight and boosts performance levels to achieve ideal societies for the future.

The innovation and optimal use of modern technologies and data is the cornerstone of establishing future cities which Abu Dhabi seeks to achieve in order to establish its position as a global centre for sustainable information infrastructure. Abu Dhabi is, at this tenth session of the World Urban Forum, bringing together specialists

Keeping pace with urbanisation, technological development, and the creation of smart cities, will enhance the well-being of citizens, residents and visitors.

This will contribute towards an ideal and healthy environment for living and working, in a manner that provides successive generations with a healthy, satisfying and safe life.

Abu Dhabi sees these development plans which aim to build sustainable societies as a real opportunity to attract investment and employment opportunities, which will activate the wheel of growth and economic prosperity.

Countries must realise that innovation is the primary source of wealth and development, bypassing their dependence on natural resources in order to realign their focus upon talent and ideas as the source of innovation.

Abu Dhabi’s hosting of WUF10 is a vital step towards achieving the capital’s strategic vision in the field of sustainable development, in order to achieve the goals of the United Nations for sustainable

development. The long-term development strategy for the Emirate of Abu Dhabi has a degree of focus upon the renewable energy sector, as part of a broader diversification of income sources and to boost the capital’s gross domestic product.

Rapid strides Abu Dhabi has already made great strides in this area, advancing to the status of regional pioneer in the field of sustainability, as well as optimising its use of clean energy. Such an approach resonates with grander urban planning schemes for cities, which seek to utilise sustainability as a strategic aspect of urban development.

Abu Dhabi has already demonstrated its ability to develop its strategic growth in a sustainable manner and its ambition is strong to cultivate this still further. The urban environment in the Emirate of Abu Dhabi is distinguished by its unique urban identity as it is an Arab city open to the whole world.

The World Urban Forum is being held for the first time in the Middle East in the Arab world and this occurrence in itself is a strong testament to the success of Abu Dhabi’s effective strategy in implementing sustainable urbanisation, characterised by the city’s dramatic shift towards urbanisation in a relatively short period of time. The forum will provide a detailed study on the effects of modern-day urbanisation on societies, cities, economies, and climate change.

Reviewing accomplishments The forum provides an important opportunity to review the most important global and local achievements in the field of sustainability. This includes the concept’s practical applications in housing and smart services, as well as the latest urban and architectural designs for modern projects that keep pace with the latest developments in the field of construction.

WUF10 also provides an opportunity to achieve effective partnerships with institutions supporting sustainable building applications and companies developing smart solutions in the field of construction and services. This will provide cities with a model of infrastructure services that complement the future directions of nations. n FEBRUARY 2020 31

Expo 2020

Examining the legacy of Dubai Expo 2020

Panellists deliberating on the legacy of Dubai Expo 2020.

Dubai has earned itself the rightful place to host Expo 2020, an inspiring odyssey that will commence on 20 October 2020 and run through 10 April 2021. A formidable quartet comprising eminent professional and business luminaries offer their insights on the legacy of the mega event.

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huge amount of excitement, commentary and press attention has been generated since Dubai was selected to host the Expo 2020 in 2013.

With the event expected to contribute approximately Dh122.6bn ($33.4bn) to Dubai’s economy between 2013 and 2031, a wide range of sectors–including financial services, infrastructure, construction, real estate, hospitality, tourism and transport– have already begun to benefit from increased spending and investment in the run-up to the event.

However, the precise impact and legacy of Expo 2020 remains difficult to predict. During a panel discussion held to commemorate the launch of the new report on Dubai’s economy published by Oxford Business Group, four high-level panellists from key industries met recently at NASDAQ’s MarketSite in the Dubai International Financial Centre to discuss their perspectives on what awaits the emirate beyond 2020.

These were Hussein Sajwani, Founder and Chairman of DAMAC Properties; Elissar Farah Antonios, CEO of Citibank UAE and Cluster Head for Levant and Iraq;Taha Khalifa, Client Computing Group

32 FEBRUARY 2020

Sales Director of EMEA Territory at Intel Corporation; Christophe Nicaise, Chief Strategy and Business Development Officer at Seddiqi Holdings, took to the stage to offer their perspectiveson the future.

Real estate:

Following a couple of unremarkable years, growth in the real estate sector began to pick up in 2018, increasing by 7%, according to theDubai Land Department. Despite certain analysts’ projections that growth would remain at around 6% to 10% in 2019-20, oversupply of residential units has put strains on the industry, with various factors including overconfidence in demand, increased competition and a slowing global economy leading some developers to slow their operations or decrease the number of new launches. However, according to Sajwani, demand remains robust, with total unit sales across the sector expected to reach between 25,000 and 30,000 in 2019.

Nevertheless, with the imbalance between supply and demand expected to continue driving prices down in the short to medium term, the future of the industry will likely be determined by the corrective actions taken.“Improved efficiency in the market, driven by the

fast flow of information resultingfrom wider use of digital channels, has enabled investors and buyers to leverage the current market dynamic to bring down prices.

An oversupply of a mere 3-4% today can result in a 30-40% drop in prices, as the balance of power moves from developers to consumers,” Sajwani said.

Beyond:

A number of measures are in motion to find an equilibrium between supply and demand, including the creation of the higher committee for real estate planning, headed by Sheikh Maktoum Bin Mohammed bin Rashid Al Maktoum, and individual companies’ engagement to ease new development. While the impact of these measures remains to be seen, Sajwani believes that slowing down construction for approximately 14 to 18 months would effectively mitigate any additional effects on the industry.

Expo 2020’s main contribution to the property market is that it will enable Dubai to showcase its potential to foreign investors, especially those coming from Asia and Africa. Referencing this new trend, Sajwani said,“With over 1.3bn people – 200m of whom can afford to travel abroad – China is one of the markets

Expo 2020

that has had limited exposure to Dubai’s investment potential. In this context, Expo will showcase Dubai’s potential and attractiveness to new investors which, together with recent changes in visa requirements, should bolster demand.”

Finance:

Dubai has seen 92 merger and acquisition deals, worth approximately $97bn, so far this year, for an increase of 43% compared to 2018. In terms of volume, the UAE ranks second in the region, behind Saudi Arabia and ahead of Egypt. With companies seeking to bolster efficiency, increase scale, lower costs and strengthen their balance sheets, it is likely that a number of sectors will follow the example of the banking sector’s recent consolidation spree.“A decade years ago, cross-border acquisitions were the norm; today, domestic transactions have taken the lead, as exemplified by recent events in the financial services arena,”Antonios said.

Beyond:

According to Antonios, we are likely to continue witnessinga consolidation of the market as industries adapt to the new reality, and increasingly seek to compete

in an international setting.“The creation of domestic champions that can compete regionally and internationally is inevitable as Dubai becomes an increasingly mature market. In this context, the sectors with the best prospects are con-struction and real estate, as well as education,”Antonios said.

Maintaining its dominance in the financial services arena will necessitate flexibility from regulators concerning new technologies.“While Dubai provides two of the most crucial elements sought after by financial service professionals – security and stability – it is imperative that regulation is able to keep up with global trends.

Digitalisation:

Digitisation and technological advancements are not only creatingbig changes in the digital payments arena, but also in the portfolio and asset

management field. While the regulatory environment in Dubai remains ahead of its peers, the discrepancies of dealing with four regulators can be a bottleneck to improving efficiency across the emirate’s financial industry,” she added.

Innovation: As its theme“Connecting

Minds, Creating the Future” implies, Dubai aims for Expo 2020 to act as a catalyst for the development of a vibrant tech sector.

According to Khalifa, Dubai has already positioned itself as a centre of innovation and entrepreneurship in the region, with clear and measurable objectives focused on the development of new technologies such as artificial intelligence (AI), blockchain and 3D printing.

“Dubai has established itself as a pioneer in innovation, thanks to numerous

Expo 2020 is expected to contribute approximately Dh122.6bn ($33.4bn) to Dubai’s economy between 2013 and 2031

FEBRUARY 2020 33

Expo 2020

initiatives backed by the government and supported by the private sector. These include the establishment of a Ministry of AI; the 2031 UAEAI strategy aimed at positioning the UAE as a global leader in AI and bolstering the segment’s contribution to GDP to 10%; a 3D printing strategy that seeks to make Dubai a global centre for 3D printing and have 25% of new buildings in Dubai use the technology; the establishment of a smart cities framework, which has helped to break down the silos that represent one of the biggest challenges to the free circulation of ideas and information; and establish Dubai as one of the key smart cities worldwide,” said Khalifa.

Beyond:

According to Khalifa, the biggest challenge the technology sector faces pertains to the number of technology graduates. Encouraging young students to pursue tech education and careers, and promoting science, technology, engineering and mathematics (STEM) education in schools will be necessary to grow the local talent pool needed to support all of these technology-led initiatives.

The ‘One Million Arab Coders’ programme launched by Sheikh Mohammed is a great example of nurturing local talent and promoting tech education among the youth. Dubai continues to be an attractive location for global talent, and the establishment of new rules and regulations to encourage qualified people to come to Dubai will help position the UAE as a global 34 FEBRUARY 2020

technology and innovation centre.

Collaboration between the government and the private sector on key curricula and education directions will be key to support local talent with the industry trends and tools needed to compete globally.

With regards to entrepreneurship, Dubai has quickly positioned itself as a leading innovations ecosystem in the region.

Regulatory frameworks, as well as the advent of local incubators and accelerators, have incentivised start-ups from across the world to see Dubai as their regional headquarters. There are many success stories of local companies being acquired by global corporations, highlighting the potential of Dubai start-ups. Dubai’s plan to be a global centre for AI, blockchain and 3D printing is encouraging many start-ups to come and set up a presence in Dubai. The key challenge is how to go beyond Series A financing.“Growing beyond Series A financing to series B and C through scale is important,” Khalifa said. Together with the financial services industry, we are working on creating the necessary framework to leverage the innovation and entrepreneurial potential of Dubai, to develop interesting alleys for growth.”

Retail: Contributing over 23% of Dubai’s

GDP, retail is undoubtedly one of industries most affected by the advent of new digital channels, with e-commerce growing by double digits year after year. In spite of this, the emirate continues to bet strongly on foot traffic or store-based retail –which accounts

for the lion’s share (95%) of sales – as evidenced by projects such as the Cityland Mall, Nakheel Mall in Palm Jumeirah, Deira Night Souk, Deira Mall and others.

According to Nicaise, one of the major challenges facing retailers in Dubai is that local players are primarily representatives of foreign brands, and that most online platforms are overseen by the brand’s headquarters, in Europe, North America or Asia. This makes local retailers vulnerable to losing market share as e-commerce gains traction.

Beyond: For brands and representatives

to compete in a digital world, they will need to develop a more robust, customercentric approach, integrating in-person and digital experiences.“Local retailers have already begun to revisit their distribution agreements to fulfill a mandate that includes online sales. Moving towards omnichannel agreements that integrate brick and mortar, together with digital platforms, is paramount to ensure sales in a market increasingly dominated by online outlets,” Nicaise said.

Building on the momentum of the last decades and the robust size of its retail sector, Dubai has a real chance to position itself as the retail and e-commerce centre of the region.“Ensuring the highest quality, especially within luxury retail, will require brands to partner with local firms that share their values and that have the know-how necessary to communicate their message to a local audience,” Nicaise added. n

Integrated Energy Logistics Provider The Tristar Group is a fully integrated Logistics Solutions provider that offers a comprehensive list of services to cater to the needs of the petroleum, chemical and petrochemical industries, both in the region and globally. The company’s core expertise lies in its ability to safely handle and distribute all types of retail fuels, lubricants, chemicals, petrochemicals and liquid gases.

Specialized Warehousing for Chemicals & Dangerous Goods

Commercial Aviation Refueling

The JAFZA South custom built warehouse has the capability to offer both ambient and temperature controlled storage for a wider range of petroleum products, including industrial solvents and soft chemicals. Total warehouse capacity is in excess of 17,000 pallet positions. The facility has an in-house fully automatic tank cleaning facility installed by Groninger (Europe). The tanks will be cleaned with soft water with chlorine content less than 50PPM alongside with a high pressure pump of 100 bar and a Boiler designed to produce steam at 1.2 TPH, which generates hot water of 80 Degrees Celsius. A fully automated effluent treatment plant will treat and recycle all waste water from the cleaning station to be used for general cleaning and irrigation purposes.

Tristar is into the commercial aviation sector in Africa by offering refueling services at the Juba International Airport and Malakal Airport in South Sudan, starting with Flydubai, WFP and several members of the Africa Airlines Association. Tristar has also established an Aviation Refueling Station at the Monrovia Airport in Liberia which is ready for commissioning. Tristar’s Aviation Fuel Stations comply with international standards, specifications and guidelines set by IATA, JIG, AFQRJOS, as well as with IFQP requirements set by Airlines for Aviation Fuel Quality Control and Operating Procedures. Tristar has been a member of IATA since 2008 and has a technical service agreement with Hansaconsult.

Polymer Bulk & Bagging Warehouse

Fuel Farm

The multi logistics polymers facility in JAFZA South is designed for receiving bulk PP/PE granules into silos and bagging of the granules by fully automated bagging operation into FFS film bags and/or big bags. The packed material can be stored inside the warehouse in racking with a capacity of 8,000 tons. It also has a drum filling station with capability to drum from ISO tanks and road tankers thus providing customers a solution to receive in bulk and store and distribute in packed conditions.

Tristar owns, operates and manages 62 fuel farms globally with a storage capacity of more than 700 million liters for handling a wide range of petroleum products like Jet Fuel, Gasoline, Gasoil, Fuel Oil, etc. Tristar’s fuel farms and storage depots are constructed and maintained in the services of its clients. Our largest fuel farm is in the Pacific island of Guam which has a capacity of 4.2M barrels. All the operations comply with the local and international safety and environment standards, including OSHA and USEPA.

Road Transport

Shipping

Tristar owns and operates over 1,700 vehicles ranging from road tankers, trailers and delivery pickups in the Middle East, Asia and Africa. Operations are certified for Integrated Management System including the latest ISO 9001, ISO 14001, ISO 45001 and ISO 39001. Tristar is periodically assessed by the Gulf Petrochemicals and Chemicals Association for SQAS (Safety and Quality Assessment System).

Email: info@tristar-group.co

The shipping business acquired Eships in early 2016 and now owns and operates 29 chemical, oil and gas tankers and bulk carriers trading globally, mostly with Oil Majors.

The vessels include the six Eco MR tankers (50,000 DWT) delivered in 2016 and the six new build 25,000 MT DWT, IMO Type 2 Oil and Chemical tankers to be delivered between the middle of May 2020 till the first week of January 2021. These ships are fitted with fuel saving equipment such as the Propeller Boss Cap Fins and Trim Optimization System.

Website: www.tristar-group.co

GPCA

Dominating the Downstream Domain The Gulf Petrochemicals and Chemicals Association (GPCA) is an influential and high-profile body that represents the downstream hydrocarbon industry and derivatives in the energy rich Arabian Gulf.

The industry constitutes the second largest manufacturing sector in the region, producing over US$ 108 billion worth of products a year.

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stablished in 2006, the GPCA represents the interests of more than 250-member companies from the mega chemical and allied industries accounting for over 95% of chemical output in the Gulf region.

The association supports the region’s petrochemical and chemical industry through advocacy, networking and thought leadership initiatives that help member companies to connect, to share and advance knowledge, to contribute to international dialogue, and to become prime influencers in shaping the future of the global petrochemicals industry.

Committed to providing a regional platform for stakeholders from across the industry, the GPCA manages six working committees—Plastics, Supply Chain, Fertilizers, International Trade, Research and Innovation, and Responsible Care.

Global Supply Chain spoke exclusively to Dr. Abdulwahab Al-Sadoun, SecretaryGeneral, GPCA, in a wide-ranging interview on the current health and state of the industry, performance, challenges, vision, the future and its implications for the industry.

Global Supply Chain (GSC): The recently published ‘GPCA--Pulse of the Chemical Industry Report’ released at the 14th GPCA Annual Forum held in Dubai in December 2019 bodes well for the industry. How has the chemicals sector fared in the GCC in 2019 and how does that compare with the 2018 performance?

Dr. Abdulwahab Al-Sadoun (AWS): The year 2019 was positive year for the performance of the chemical industry in the GCC region. We saw new investment being injected into the growth and development of the regional industry, with the focus being placed on portfolio diversification, new assets acquisition, and consolidation to build critical mass.

In order to secure the industry’s future

36 FEBRUARY 2020

Dr. Abdulwahab Al-Sadoun

Secretary General, GPCA Dr. Abdulwahab Al-Sadoun has been Secretary General of the Gulf Petrochemicals and Chemicals Association (GPCA) since 2009, following a career of more than two and a half decades in the GCC region’s petrochemicals and energy sectors.

His career began in 1990, as a Senior Researcher at SABIC Research and Development Center in Saudi Arabia. He has since worked for several prominent regional agencies, including Saudi Arabian General Investment Authority (SAGIA), Gulf Organisation for Industrial Consulting (GOIC), Al-Sharq Plastic Industries Co., and PetroBaas for Industrial Investment Co. Dr. Al-Sadoun is member of the Steering Committee of the International Council of Chemical Associations (ICCA) and the Board of Trustees of the Riyadh Economic Forum and the Arabian Society for Human Resources Management.

He holds a PhD in the field of Industrial Chemistry from King’s College, University of London, United Kingdom, in addition to being a graduate of the General Management Program (GMP3), Harvard Business School (HBS), Harvard University, USA.

GPCA

and maintain its market share, the GCC chemical companies need to continue to invest. In the region, the Capex of GPCA member companies is on the rise. In 2018, investment in green field projects reached US$ 3.6 billion, up from US$ 1 billion in 2017. This is expected to almost double in 2019 to US$ 6.8 billion.

GSC: How significant is the chemicals sector and ‘downstream hydrocarbon activities’ for GCC economies?

Dr. AWS: The chemical industry’s economic impact in the Arabian Gulf region is substantial. In a recent report published

by GPCA entitled ‘Beyond Petroleum: The impact of the chemical industry on the Arabian Gulf economy’, we estimate its total annual contribution to regional GDP to be US$ 81.6 billion, sustained through a combination of its direct, indirect, and induced economic channels.

To give a sense of scale, this impact was more than the annual GDP of Doha,

Qatar. The total impact (including the direct, indirect and induced channels) of the chemical sector in the Arabian Gulf region equates to 4.9% of the region’s GDP in 2018.

The GCC chemical industry supported almost 620,000 jobs both directly and through its ‘multiplier channels’ in 2018. This is almost as large as the entire population of Luxembourg and equates to 2.4% of the entire employment in the region.

GSC: Which among the GCC countries have been the top performers?

Dr. AWS: We have strong performance fundamentals across the chemical industry in all GCC states. Oman’s chemical sector had the highest contribution to GDP among all GCC countries, with 5.1% in 2018, double the figure in the region. This achievement is attributable in part to the manufacturing sector being inscribed within the top five sectors identified by Oman’s ‘National Programme for Diversification’.

Saudi Arabia has maintained its exceptional standing in 2018, retaining its spot in the top ten exporters of chemicals today globally. It is also the region’s powerhouse, with the largest volume output and chemical sales revenue. In 2018, Saudi producers generated US$ 62 billion in revenue. The Saudi chemical industry is also a champion in terms of portfolio diversification, with GPCA member companies in Saudi Arabia producing as many as 126 products with a total capacity of 119.2 million tons.

Against the backdrop of the positive price trends in fertilizer and polymer products, revenue trends in the UAE have increased by 28.4%. The petrochemicals sector in the UAE was characterised by rapid development, with 77% of the current production capacity being launched in the last decade (2008-2018).

In 2018, the UAE chemicals output was 14.5 million tons, with basic chemicals FEBRUARY 2020 37

GPCA

representing one third (33%), followed by polymers (28%) and fertilizers (30%).

Bahrain’s chemical sector achieved the highest revenue growth of 39% in 2018, attributed primarily to higher revenue from fertilizer products. Bahrain’s production capacity reached 1.4 million tons and achieved revenues of US$ 327 million in 2018.

Kuwait achieved the second highest chemical revenue growth of 32% in 2018. With industrial expansion being a top priority as part of the long-term development priorities in Kuwait’s 2035 strategy, this achievement further cements its position as a global center for petrochemical production.

Following Oman, with 4.1% in 2018, Qatar’s chemical sector has the second highest contribution to the GDP among the GCC countries. The production capacity reached 19.1 million tons and achieved chemical revenue of US$ 7.3 billion, an increase by 14% in 2018. The fertilizers represent 51% of Qatar’s share in the country’s total production capacity, the highest in the country thus far.

GSC: What implications will the Chinadriven Belt & Road Initiative (BRI) have on the GCC and specifically the Saudi chemicals industry?

Dr. AWS: With Saudi Arabia representing China’s largest trading partner in MENA, mainly in the area of oil and gas, the chemical and petrochemical industry is well positioned to seize the opportunities of the Belt and Road Initiative (BRI). In a recent GPCA report, entitled ‘Saudi – China Relations through the lens of the Chemical Industry’, we highlighted several key benefits for the kingdom from the new initiative: The BRI will support greater connectivity, improve economic flow, create new job opportunities, bring new investment, raise consumption, and enhance cultural exchange in the spirit of the ancient Silk Road.

The shipment time between Saudi Arabia and China will be reduced by 2 to 3% which in turn will substantially reduce transport costs by up to 33%. For some, significant declines in costs will be evident after switching from air transport to rail, or rail to sea.

The BRI is expected to bring significant gains when it comes to lowering trade barriers, amounting to annual savings of up to US$ 4.5 billion. The GPCA estimates that the Saudi-China FTA (Free Trade 38 FEBRUARY 2020

Agreement) could yield between US$ 600 million (low end) to US$ 4.5 billion (high end) of savings annually.

The opening of domestic markets in both countries and diverting more investment from China to Saudi Arabia through BRI collaboration may create new opportunities for growth.

GSC: How is non-dependence and diversification away from oil impacting the chemicals segment in the region?

Dr. AWS: Between 2001 and 2018, the real value-added CAGR (compounded annual growth rate) of the region’s petrochemical and chemical sector has averaged 5.2%, compared to a global average of 3.4%. This growth and diversification have catalyzed new economic activity—even more so as the region’s producers seek to move toward higher value-added products and investment in new technology.

The chemical products manufactured here serve as inputs into several sectors and industrial activities that help to increase productivity and raise living standards across the region. As a major supplier of inputs to many other sectors, most industries use chemical products for energy generation, cleaning products, and even medicine.

Diversification of the GCC economies away from oil—this is focused on sectors such as tourism, as well as oilrelated sectors such as chemicals. Rising competitive pressures will provide impetus for diversification in the Middle East, with the GCC chemical industry expected to move further down the supply chain and away from its focus on basic chemicals. This is, for example, emphasised in the Saudi Arabia’s 2030 Vision goals.

GSC: How will the fortunes of chemicals be affected with an increasing focus on the circular economy?

Dr. AWS: The chemical industry in the Arabian Gulf and globally is at the forefront of championing the circular economy and its adoption. Emanating from its fundamental principle is that the value of products, materials and resources is maintained for as long as possible by returning them to the cycle after use, thereby minimising waste.

At the beginning of a product’s lifecycle, the process starts with smart product design and production which saves resources, avoids inefficient waste management and creates new business opportunity.

Therefore, with the adoption and

implementation of the circular economy we can expect to see some adjustment and disruption to current petrochemicals demand and material flows. However, where the opportunity lies is in driving smart product design and innovations that ensure the sustainability and adaptability of our products in line with the circular economy principles--reusability re-usability, recyclability, circularity and more.

GSC: How will the chemicals industry be buoyed with strategic investment and carefully crafted partnerships? Is that the way forward?

Dr. AWS: Forming strategic partnerships can help chemical players in the region develop robust business models and generate consistent returns. Specifically, in the Middle East region, such partnerships have proven to be very successful, with close to 55% of total chemical capacities in the region being run in partnership mode, compared to the global average of 25%.

Strategic partnerships can benefit the industry and increase the competitiveness of chemical players by sharing the high cost of investments in capital-intensive projects and widening companies’ portfolio; sharing of supply chain and distribution networks, especially in a challenging trade environment.

Other contributory factors include business and technology capabilities sharing across the value chain; leveraging capabilities and learning from digital players to improve current business and grow in adjacent spaces and allowing quicker entry into higher growth markets such as Asia through partnership with local players who have an established distribution network.

GSC: The GCC energy is at the crossroads in the region as also globally.

Where does it go from here and what does the future hold for the industry?

Dr. AWS: The GCC chemical industry will face more of the same opportunities and challenges as it did in the past financial year. I expect the following global trends to continue to drive demand for plastics and chemicals around the world. These include the growth of the middle class; accelerating urbanisation; increased longevity and population growth.

Four emerging forces including globalisation and trade, digitalisation, environmental sustainability and plastic waste and circularity are changing the direction of the chemical industry for good. For instance, the digitisation of

In April 2020, Dubai will hold The 12th edition of GPCA GPCA’s Supply Chain Conference under the theme ‘Supply Chain 4.0 – Maximising Performance through Technology’.

research and development is creating an opportunity for improved ideation, experimentation and automation, with a potential value of US$ 28-31 billion, according to the World Economic Forum.

Chemical players would need to capitalise on these trends in order to remain successful in the coming years.

Other areas where demand growth is expected include health and clean water; the drive for light weighting/ electrification of vehicles, the proliferation of vehicle ownership, and finally, the sustainability trend.

GSC: How, in your estimation, is the chemicals industry expected to fare in 2020?

Dr. AWS: Megatrends impacting the 2020s will include the implications on energy transformation by the mobility trend; crude to chemicals and refinery integration; light vs. heavy feedstocks; the impact of plastics waste on demand; and last but not least, the global impact on petrochemicals by China.

The current chemical industry cycle will continue into 2020, as we saw a decline in earnings in 2019, and the mediumterm outlook, according to economists will include the next industry down-cycle.

A slowing economy and a new wave of

chemical capacity additions will be key contributors towards a down-cycle.

To remain agile and resilient in the current economic conditions, companies would need to assess forecast risks and opportunities along all key parameters including supply, demand, energy, economic, geo-political developments, technology, sustainability and people.

GSC: What are the challenges and corresponding opportunities for the industry going forward?

Dr. AWS: The challenges facing the chemical industry include—a challenging global macro-economic environment, with global GDP growth-rate nearing a decade low; uncertainty fueling geopolitical tensions, adding further stress to the global economy and the investment climate for businesses; acute escalation in the US-China trade conflict and the ongoing trade war, which is yielding structural changes to the global economy and disrupting supply chains.

Furthermore, increasing focus on sustainability and the circular economy is also changing the end-market landscape.

Technological disruptions create uncertainty in the near-to-medium term. In the longer-

term technology disruption will create opportunities. Accelerated innovation and the adoption of path-breakingtechnologies, disrupting traditional industries and associated business models will also make their mark.

On the other hand, significant opportunities will continue to exist in the growing populations and increasing urbanisation driving demand for chemical products, materials, and solutions that improve resource efficiency and cater for better living standards; the mobility megatrend offers strong growth opportunities, as demand increases for high performance plastics, automotive catalysts, and battery materials.

Significant opportunities can also be found in advanced food ingredients; additive manufacturing; sustainable nutrition; cosmetic solutions and healthcare.

GSC: The industry has also witnessed its fair share of mergers and acquisitions in the recent past. Are we going to see higher levels of this in the near future?

Dr. AWS: It’s difficult to predict the level of consolidation, and mergers and acquisitions that could take place in the region in the FEBRUARY 2020 39

GPCA

Saudi Arabia is in the top ten exporters of chemicals today globally. It is also the region’s powerhouse, with the largest volume output and chemical sales revenue.

short to near term. The drivers behind consolidation and integration such as improved access to technology, building scale and critical mass, gaining access to crucial markets abroad, cost sharing, among other factors are here to stay.

Other significant benefits exist in pursuing new M&A deals from improving one’s competitive position globally to creating greater shareholder value and diversifying the business and product portfolio.

GSC: Yousef Al-Benyan, Vice Chairman and CEO, SABIC, and Chairman, GPCA, made the case for strategic integration, JVs, consolidation and partnerships as being vital to unlocking industry growth at the recently concluded 14th Annual GPCA December 2019 meet. What is your take on this approach?

Dr. AWS: Leveraging partnerships for growth and competitiveness will be absolutely key. As Al Benyan highlighted in his opening remarks, some of the benefits include—capital investments and risks/returns sharing; supply chain, operations, technology and innovation; sharing of supply chain and distribution networks, especially in a challenging trade 40 FEBRUARY 2020

environment.

GSC: What is the role of new technologies in the evolving industry?

Dr. AWS: New technologies present both challenges and opportunities for the chemical industry. Chemical manufacturers stand to benefit significantly from adopting digitalisation and best-in-class innovations.

Digitalisation will continue to help drive greater efficiencies and there is a huge potential to improve the customer experience through adopting cutting-edge innovations. Digitalisation in a typical chemicals business can deliver an EBITDA improvement of about 10-12%. By utilising and investing in technology to monitor and prevent disruptions, companies can make significant savings in the long run.

GPCA continues to be at the forefront of this discussion, and this year in its 12th edition, GPCA’s Supply Chain Conference will be held under the theme ‘Supply Chain 4.0 – Maximising Performance through Technology’ in mid-April, 2020 in Dubai.

The application of a new set of technologies collectively called as Supply Chain 4.0 has brought a new

set of challenges and opportunities for the chemical industry and will require companies to rethink and re-align their strategies to design their supply chains.

GSC: What is the industry doing to attract fresh talent and special skills?

Dr. AWS: Individual companies have their own recruitment drives to ensure they attract and retain talent. For our part, GPCA, with the support of our members, contribute to local talent development in the Arabian Gulf and building the local human capital with our flagship initiative, Leaders of Tomorrow (LoT).

The initiative falls under one of the key pillars of the association which is advocacy by promoting STEM and bridging the gap between academia and the industry.

‘Leaders of Tomorrow’ is considered as the first official collective step where industry stakeholders collaborate in shaping skills and preparing the future industry leaders with the required skills set.

The initiative consists of a year-round program where GPCA member companies sponsor university students from around the GCC to attend the GPCA annual conferences. n

First Person

Micro-mobility: The new trend for commuters across the globe

T Now, more important than ever, is the time to focus on micro-mobility, a mode of transport that focuses on mobility for short distances. With increased population densities, more cars on the road (and therefore increased requirements for parking), and generally a more time-poor community, people are increasingly leaving their cars at home, exploring any and every other way of getting where they need to be as quick as virtually possible.

Mahmoud Habboub, Director of Smart Mobility, Careem, provides insights on how micro-mobility is becoming the new trend for commuters across the Middle East and the globe and how partnerships are critical to solving the mobility needs to benefit the community as a whole.

he concept of commuting through planes, trains and automobiles has drastically evolved. Now, the simple act of commuting includes helicopters, pedal-assisted bikes, electric scooters, ride-share services, e-cars, fully-electric trams and metros, and more.

Companies, old and new, not only have to adapt, but also innovate to ensure they’re not just acknowledging new ways of transportation but innovating themselves while working them into their platforms and strategies.

At Careem, we are focusing on something called micro-mobility; a mode of transport that is focused on mobility for short distances. With increased population densities, more cars on the road (and therefore increased requirements for parking), and generally a more time-poor community, people are increasingly leaving their cars at home, exploring any and every other way of getting where they need to be as quick as virtually possible.

Usually, micro-mobility is provided by very light vehicles such as docked public bikesharing, scooters and on-demand shuttles for communities that are focused on short distances within a community. As electric mobility scales in the next five years and becomes the dominant form of transport, electrified mobility will have a transformative effect on our lives, from cleaner and less polluted air, quieter environments, and more efficient and sustainable transport.

Global cities, local mobility Cities globally are increasingly focused on micro-mobility, and this can be seen in the likes of New York, Toronto, London, Barcelona, and now Dubai, where micro-mobility, like public bike-share, is an important part of the city landscape. Within Careem’s super app strategy, we’ve already started exploring how we can expand our ride-share service to tackle micro-mobility at the offset. By partnering with cities, transport regulators, and governments, and by supporting public transport, Careem will be able to cover

the different needs of commuters, making these services affordable to all sectors of the population. For example, their first and last mile needs to mass transport.

These innovations will create less congestion and polluted cities. Furthermore, they will be more equitable where deployed, improving livability within communities and hence the cities themselves. In the UAE, Careem work closely with government entities to work on a cohesive stride forward and have partnered with DMCC, Emaar, TECOM and the RTA to ensure we work towards the goal of wider city access. These partnerships are critical to solving the mobility needs of people successfully and for the benefit of the community as a whole.

Community living Our lives are dominated by our communities. Where we live, work and go out to entertain ourselves can all be spread across multiple neighbourhoods. Yet it can be difficult to move around and use mobility services within these communities. The reason being, most transportation services are focused on covering long distances; they are expensive and not tailored for these mobility needs.

With this in mind, Careem intends to provide dedicated mobility services to these communities, either through personal mobility devices, like bikes, scooters, or dedicated on-demand shuttles within communities.

So, the next time you’re commuting, think not only of the inconveniences but the opportunities available. Careem is continuing to contribute to the evolution of the commuting landscape, and there are many ways to get to point B. n (Careem is the leading internet platform in the greater Middle East. A pioneer of the region’s ride-hailing economy, Careem is expanding services across its platform to include mass transportation, deliveries and payments.

Established in July 2012, Careem operates in more than 100 cities across 14 countries.)

FEBRUARY 2020 41

Petrochemicals

UD Trucks and Kuwait Municipality signed a sales deal.

Global chemical supply and demand threatened by Middle East escalation This analysis from Will Beacham, Deputy Editor, ICIS (Independent Commodity Intelligence Services) Chemical Business, looks at the products that are heavily exposed to disruptions and the knock-on effects for the world’s already fragile manufacturing economy.

A

s the threat of further military action in the Middle East looms large, disruptions in the Strait of Hormuz could seriously impact the global trade in chemicals and oil products.

Military action leading to closure of the Strait of Hormuz between Iran and Saudi Arabia could seriously disrupt global trade in chemicals and oil products, with a knockon effect for the world’s already fragile manufacturing economy.

The US killing of General Qasem Soleimani, head of the Iranian Revolutionary Guards’ overseas forces, on 3 January 2020 threatens to further stoke up tensions in the Middle East. Iran retaliated on 8 January with missile strikes against US forces in Iraq.

42 FEBRUARY 2020

Vital shipping lane The Strait of Hormuz is an important shipping lane, linking Middle East oil and chemical exporters to the rest of the world.

More than 20% of global petroleum liquids and a significant proportion of chemicals are transported through the Strait.

According to ICIS senior consultant, Asia, John Richardson, quoting ICIS Supply & Demand database forecasts for polyolefins exports in 2020, this includes 4.1m tonnes of Middle East high-density polyethylene (HDPE) production due to be exported via the Strait.

For chemical markets already in oversupply, such as polyolefins and isocyanates, any supply shock from the

ICIS (Independent Commodity Intelligence Services) provides intelligence for the global petrochemical, energy and fertilizer markets. Itis the world’s largest petrochemicals market information provider, with divisions spanning energy and fertilizers.

Will Beacham is Deputy Editor on ICIS Chemical Business. He writes about global chemical industry trends for ICIS since 2000, as part of its 250-strong global editorial team.

Petrochemicals

Middle East will have little impact. For others, such as Low-density PE (LDPE), where 68% of global net exports, 3.1m tonnes come through the Strait, supply risk is far greater.

This accounts for 38% of total global net exports amongst all the regions that are in net export positions – where exports are higher than imports.

Top 20 global chemical markets most potentially disrupted by closure of Strait of Hormuz in 2020

Product LLDPE Ethylene Glycols LDPE Ethylene MTBE Ethylene Oxide Linear Olefins Methanol

Supply disruptions Supply risk is greater in linear low density polyethylene (LLDPE) where 51% of global net exports – 4.7m tonnes – appears to be exposed. Low-density PE (LDPE) is most at risk, with Middle East exports via the Strait accounting for 3.1m tonnes of net exports, 68% of the global total.

Other important products heavily exposed to disruption to shipping in the Strait of Hormuz include monoethylene glycol (MEG), ethylene and methanol.

In an all-out war scenario the Strait could close completely, cutting off regional chemical exports for a prolonged period.

A lesser conflict could lead to periodic disruption to traffic through the Strait.

Over-supply For chemical markets already in oversupply, such as polyolefins, isocyanates and MEG, any supply shock from the Middle East will have less impact as capacities elsewhere can be ramped up in response.

This happened after the attack on a Saudi Arabian oil processing facility in September 2019 which cut feedstock supplies to regional chemical facilities.

This chart shows the most potentially impacted chemicals in terms of percentage of global production capacity.

Oil prices spiked 5% to more than $70bbl following the US attack and Iran’s response before dropping back slightly. They remain well above levels prior to the incident.

Oil-consumer spending nexus Higher oil prices act as a brake on consumer spending, so any sustained hike is likely to hurt global economic growth.

The manufacturing economy is already fragile, with purchasing managers indices in negative territory for the US and Europe.

Business and consumer sentiment soured during 2019 as the US-China trade war

Ethanolamines Alkylbenzene HDPE Styrene Ethylbenzene Polypropylene TDI Glycol Ethers EDC Propylene DMT Butyl Rubber

Data from ICIS Supply & Demand Database.

0

5

10 Percentage of global capacity

15

20

Note. Assumes no chemicals can be exported from the Middle East by sea through the Strait of Hormuz.

Model does not take into account the relatively small amount of product consumed locally or exported by train or road.

Following sites excluded which would not be affected: Saudi Arabia - Yanbu, Rabigh, Jazan; Oman – Salalah, Sohar

deepened and growth slowed in major economies. This is likely to be hurt further by any Middle East conflict.

For Rhian O’Connor, lead analyst, Market Demand Analytics, ICIS, the main impact on petrochemicals is sentiment.

“The demand side remains very weak for manufactured goods with pessimism high and investment low. The potential for conflict will further dampen global producers desire to invest. Higher raw material prices will thin margins as producers struggle to pass this through the chain. Any consumer price increases could soften end market demand, at a fragile time,” he assessed.

Margins under threat According to Richardson, ethylene and PE variable cost margins for naphtha-based crackers in northeast Asia fell throughout 2019 and in December hit minus US$ 90/ tonne, the lowest since ICIS records began in 2000. Higher oil prices would squeeze these further whilst demand is suffering because of increased US supply to the region.

Unusually, benzene spreads were also below US$ 100/tonne for six months in 2019.

“Higher oil prices will act as a tax on the economy, reduce economic growth

and make life worse for petrochemical producers. I think that is probably the bigger story than any interruption to supply,” he added.

International eChem chairman Paul Hodges, is concerned about the additional uncertainty that this development will create for the chemical industry.

“Companies are already worried about the downturn in margins caused by the slowdown in the global economy, the rise of protectionism and the relatively high cost of oil,” he said. The risk now is that worries over availability lead to a period of higher prices caused by panic buying, and that these can’t then be passed through to endusers due to softening demand.”

Straits of Hormuz—tinderbox He believes that any threat to the Strait of Hormuz would almost certainly plunge the global economy into outright recession, given the likely impact on oil market supply and prices.

With the conflict unlikely to be resolved quickly, Hodges urges chief executives to focus on contingency planning rather than just assuming they can rely on ‘business as usual’, particularly with the International Monetary Fund already warning that the global economy is in a ‘precarious’ position. n FEBRUARY 2020 43

Saudi Rail Forum 2020

The recently concluded Saudi 2020 Rail Forum attracted a large number of influential officials and professionals where the assembly discussed investment opportunities, logistics and technology.

Saudi Rail expansion on track

T

Ammar bin Ahmed Al Nahdi he Saudi Railway Company (SAR), in cooperation with the Ministry of Transport, recently hosted the two-day 2020 Railway Forum in the Kingdom’s capital Riyadh, under the Royal Patronage of the Custodian of the Two Holy Mosques, King Salman Bin Abdulaziz Al-Saud.

The event garnered the interest of ministers, leaders and influential figures in the transport industry from different countries around the world, and is yet another achievement for the Kingdom of Saudi Arabia’s economic renaissance in various fields, the most important of which is the transport sector, which is one of the pillars of the Kingdom’s 2030 vision.

Serious deliberations The forum showcased the latest findings of the railways and transportation industry, while expanding the horizons of cooperation between concerned international companies, and employing the capabilities with the requirements of development and growth in the transport sector via railways. It also aims to elaborate modern national programs to develop this industry.

The forum aimed to shed light on the development and growth of the railway sector in the Kingdom, and to attract pioneering investments with local and global partnerships to highlight the 44 FEBRUARY 2020

Chain; Future of Railways; Hyperloop System; Technological Innovation; Rail Operations Technologies; Smart Rail, Governance and investment.

Sponsors included the Saudi Arabian Mining Company (Maaden), the Etihad Rail Company, SABIC, Bahri, Public Authority for Transport.

Dr. Bashar El Malek Kingdom’s role as a major center for transport services in the region.

It placed the railways sector in the Kingdom on the global map, by attracting pioneers in the transportation sector, and creating a platform International to present results that vary between new concepts, exchange of successful experiences, put forward distinctive ideas, learn about modern technologies in the railway sector, and meet with influential people.

Ministers converge to venue According to Ammar Bin Ahmed Al Nahdi, Director General, Corporate Communications and Marketing, SAR, HE the Saudi Minister of Transport Eng. Saleh Bin Nasser Al-Jasser participated in a discussion session titled ‘Towards 2030’, along with a group of transport ministers around the world.

Bashar Al Malik, CEO, Saudi Rail, also addressed the gathering.

Several CEOs from most prominent international companies also participated in multiple sessions. The presentations and discussions centred around ‘safety and security in the railway industry’. The discussions also focused on Railways Transport and Logistics, Multimodal Supply

Distinguished gathering Prominent participants included Talal AlAnazi, Director Corporate HSE & Industrial security at Maaden; Eng. Abdullah Al-Yousef, Engineering support services Director at SAR; Kai Taylor, from the French Group Thales; Matthias Schubert, Executive Vice President Mobility, TÜV Rheinland Group, Engineer; Abdul Jabbar Bin Salem, Regional Operations Director Mena Infrastructure for the Middle East and North Africa, SNC Lavalin; Javier de la Cruz García Dihinx, CAF Rail Digital Services Managing Director, and Andres De Leon, CEO, HyperLoopTT. The Saudi Railway Company (SAR) was established in 2006 by the Public Investment Fund to implement a railway project linking the north of the Kingdom to its East and its centre.

The most recent achievements of SAR were the launch of passenger services in the North Line in 2017 and the Two Holy Mosques in 2018. The company boasts one of the longest trains in the world, with a length of 3 km.

It runs the largest network of trains around the world through the European system - the second level -, which owns all assets including fixed and movable operating assets for all rail transport projects between cities in the Kingdom. n

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Emirates Skycargo — Looking Forward

UD Trucks and Kuwait Municipality signed a sales deal.

UD Trucks gaining traction across Middle East and East Africa Launch of New Quester contributed to sales growth in the GCC

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he launch of the new, heavy-duty Quester, a series of major fleet deals and the announcement of a new retail partner in Saudi Arabia were among the highlights of 2019 as UD Trucks enjoyed another positive year across the Middle East, East and North Africa (MEENA) region.

Against the backdrop of extremely challenging economic conditions, the Japanese commercial vehicle brand that belongs to the Volvo Group recorded sales increases in a number of key markets, in particular the United Arab Emirates, Kuwait and Oman.

In the UAE, UD Trucks sales were up almost 10 percent year-on-year, despite the overall market shrinking. It was a similar story in Oman, with the market down but UD Trucks registering 10 percent growth.

As a market, Kuwait however bucked the regional trend with truck sales increasing, helping UD Trucks to an impressive doubling of sales. The company maintained its number one position in Bahrain, while

46 FEBRUARY 2020

reinforcing its position in Qatar as the number one brand in the Japanese truck segment and number three brand overall, including the European manufacturers.

Saudi Arabia 2019 was very much a year of transition for UD Trucks in Saudi Arabia. Following a mutual agreement to terminate its collaboration with Rolaco Group, the brand’s previous partner in the Kingdom, UD Trucks announced Zahid Tractor as its new exclusive importer and distributor in the country.

With the start of this exciting collaboration between the two companies, and underpinned by the ambition and professionalism of Zahid Tractor, 2020 is set to be an excellent year for the brand as it seeks to continue its growth and take customer satisfaction to a higher level.

UD Trucks has invested significant time and resources in the East Africa region in recent years as it seeks to reactivate its

presence there. Last year it was rewarded for its reactivation of Ethiopia with a doubling of its market share, while the brand also helped to inaugurate a UN driver school in the country - under UD/Volvo Group’s sponsorship, UD Trucks supplied three Quester models and ran numerous driving school sessions.

UD Trucks also re-commenced activities in Kenya, Uganda and Tanzania over the course of the year. 2020 will see a continued focus on this region, and particularly in Kenya where a local assembly project will be launched.

Central to UD Trucks’ strong regional performance in 2019 was the Middle East arrival of the New Quester in April. Building on proven robustness and reliability, New Quester has introduced key features such as ESCOT automated manual transmission, engines with higher horsepower and userfriendly telematics to deliver greater fuel efficiency, productivity, driver efficiency, safety and uptime for customers.

The new Quester and medium-duty

Emirates Skycargo—Looking Forward

Croner, both of which are designed and engineered especially for the region, have been in high demand and were at the heart of the numerous major fleet deals that peppered the year.

Kuwait, UAE

a positive reflection on how we are doing that so many of our partners reconfirmed UD Trucks as their brand of choice. This essence of close and positive collaboration was strengthened by the truck bodybuilders conference that was held in August and the annual partners conference that took place in September,” he added. n

Kuwait Municipality took 106 Quester and Croner models for waste management use

In September the Kuwait Municipality took delivery of 106 Quester and Croner models for waste management use, while in the same month UD Trucks signed its first ever deal for 20 Quester 8x4 Mixers with Oryxmix in Dubai.

A further 118 Questers and Croners were sold to the waste Management Company Lavajet in the UAE and 25 to Oriental Trading Co in Qatar, with many other similar agreements signed across the GCC and East Africa.

“In 2020 we will continue our strategy to grow by reinforcing our market share in countries where we are already present and by entering a number of new markets.

We will continue to do this by collaborating closely with our regional partners while simultaneously remaining focused on that most valuable human capital: our employees,” commented Mourad Hedna, President, UD Trucks, MEENA, “Having strong partnerships in each market is critical to our success, so it was FEBRUARY 2020 47

DP World, UAE Region to host Breakbulk Middle East 2020

DP World and China’s Zhidi Company ink agreement to unlock logistics potential The strategic MoU signed between the two companies will enable both entities to deliver and facilitate full-process logistics services.

D

P World, UAE Region and Zhejiang Zhidi Holding (ZZH or Zhidi Company) of China will jointly explore the establishment of a sophisticated next-generation logistics hub to meet the rising demand for conventional and e-commerce services in Dubai.

The Memorandum of Understanding (MoU) signed between the two sides states that the intent is to create a platform for the Zhidi Company shareholders that will deliver efficient, full-process logistics services, positioning Dubai as a global e commerce hub.

The MoU was signed by Abdulla Bin Damithan, Chief Commercial Officer, DP World, UAE Region, and Wuwei, Chairman of Zhidi Company, in the presence of Zhidi Company shareholders and senior officials from both sides.

“We are greatly honoured to sign this MoU with Zhidi Company. For close to 50 years, DP World has served as a frontline economic growth engine of the UAE and as a global trade enabler. This MoU is another step towards cementing our relationship with China designed to build a better future for all,” commented Mohammed Al Muallem, CEO and Managing Director, DP World, UAE Region and CEO, JAFZA.

48 FEBRUARY 2020

Mutual cooperation “We hope to identify and determine the specific scope of the cooperation and contribute our knowledge, expertise and strength to the economies of Zhejiang province and Dubai,” stated Wu Wei, Chairman, Zhidi Company.

The MoU will be executed in stages and once the initial base stages are completed, it will explore more possibilities for cooperation, including logistics business closely related to e-commerce.

Progressive province Zhidi Company is a conglomerate of well-known enterprises in China’s eastern coastal Zhejiang Province, with significant advantages in port operations, logistic services, e-commerce, renewable resources and commodity trade and have close business contacts and solid cooperation with Dubai.

The shareholders of Zhidi Company are also main participants of the Belt and Road Initiative (BRI) Dubai Station, the giant global economic project in which the UAE is a key partner.

Another expanse that will be promoted through this initiative is communication and exchange-related activities between Dubai and Zhejiang Province, enabling more bilateral investments and trade. n

DP World, UAE Region will once again embrace the role of the Host Port for the 5th edition of Breakbulk Middle East (BBME), the largest project cargo and breakbulk event in the GCC. DP World, UAE Region will occupy the post for the second consecutive year, effectively reinforcing BBME’s growing regional presence and its contributions to the country’s economy.

The two-day conference and exhibition will be held under the patronage of HE Dr. Abdullah Belhaif Al Nuaimi, the UAE Minister of Infrastructure Development and the Chairman of the Federal Transport Authority (FTA) for Land and Maritime.

The event is set to take place from the 25th of February to the 26th of February 2020, at the Dubai World Trade Center in Dubai, UAE. As part of this strategic vision to build a diversified and sustainable UAE economy, leading maritime companies, both locally and internationally, play a critical role in achieving this objective. In this regard, DP World, UAE Region has successfully achieved tremendous progress by transferring its local expertise in managing ports and logistics to reach an international level.

DP World, UAE Region works on developing the import and export cycle from raw material production centers to the arrival of goods to the end-user, given the rapid growth of trade and shipping business, specifically in the breakbulk sector.

“Breakbulk Middle East’s rising trajectory over the last half-decade is indicative of the immense impact it will continue to have in the coming years,” observed Mohammed Al Muallem, CEO & Managing Director of DP World, UAE Region.

I

n a strategic move, DP World, UAE Region and Dubai South signed a Memorandum of Understanding (MoU) to enable its flagship Free Zone, Jebel Ali Free Zone (JAFZA) and Dubai South to facilitate the seamless entry and exit of goods between them and enhance services to their customers.

The agreement was signed between HE Khalifa Al Zaffin, Executive Chairman, Dubai Aviation City Corporation and Dubai South, and Mohammed Al Muallem, CEO & Managing Director of DP World, UAE Region, and CEO of JAFZA at the Dubai South headquarters in the presence of senior management executives and officials of both organizations.

“The signing of agreement with DP World is part of our proactive efforts to ensure more efficient operations and, thereby, smoother transport of goods between the Dubai South and JAFZA. This will provide great benefits, especially for companies and participants of the upcoming Expo 2020, which will require easy processing of their entry and exit between these free zones,” observed Al Zaffin.

Major step forward “DP World, UAE Region and Dubai South have taken a major step towards further enhancing the logistics and supply chain efficiencies required to support the on-going work at Expo 2020 site,” explained Al Muallem.

As the Premier Global Trade Partner of Expo 2020, DP World’s flagship Jebel Ali Port is the principal gateway to Exporelated cargo. Thousands of companies using the port and operating out of Jafza and Dubai South will benefit immensely as a result of our cooperation.

The MoU explores various areas of cooperation between DP World, UAE Region and Dubai South aimed at enhancing the services for customers at the security gates by unifying policies and procedures between the two free zones.

In addition to the supply chain route efficiencies, the two sides will also engage in an exchange of knowledge in leading industry practices that would further enhance the management of trade flows between Jafza and Dubai South.

DP World, UAE Region and Dubai South sign agreement to streamline movements of goods The MoU in line with efforts to enhance support for Expo 2020 and further enhancing trade flows in Dubai leading free zones.

Dubai South rising

Holistic ecosystem

Dubai South has been one of the fastest growing free zones and preferred trade gateway in the UAE, serving key regional markets including Middle East, Africa, and South Asia. The 145-square-kilometre free zone is the venue of Expo 2020 and is close to Dubai’s second state-of-the-art airport, the Al Maktoum International and one of the world’s busiest ports, Jebel Ali Port.

Dubai South’s Logistics Corridor, a unique 200-sqkm custom bonded zone which connects air, land and sea, pioneering a new global standard for goods handling of within four hours from sea to air.

DP World, UAE Region is a key engine of economic growth for Dubai, contributing to over a third of the GDP (33.4 per cent). The holistic ecosystem it has created through Jebel Ali Port and Jafza offers an end-to-end logistics landscape unique to the region, reaching out to over 3.5 billion people in some of the most dynamic emerging economies in the world today.

JAFZA is home to over 7,500 companies, while Jebel Ali Port handled 3.6 million TEU (twenty-foot equivalent container unit) in Q3-2019.

FEBRUARY 2020 49

Eaton Middle East

Obsession with safety and sustainability For over 100 years since its inception, Eaton has made safety its corporate centrepiece and ethos. This is borne out by its continuing commitment to the region providing critical power management solutions and services in support of some of the high-profile utilities projects across the Middle East.

F

or Eaton, safety is all encompassing and at the core of everything it does— safety of supply, safety of data, safety of assets and safety of people.

Eaton, the leading Ohio, USAheadquartered power Management Company, prides in its energy-efficient solutions that help customers effectively manage electrical, hydraulic and mechanical power more reliably, safely and sustainably.

Its products are available in over 175 countries across the globe.

Global Supply Chain conducted an exclusive interview with Ashraf Yehia, Managing Director, Eaton Middle East, on the sidelines of the recently concluded three-day Intersec 2020, the leading trade fair for Security, Safety & Fire Protection

50 FEBRUARY 2020

held in Dubai, during which he provided us insights into the business and the company’s business philosophy.

Global Supply Chain (GSC): What are Eaton’s standout attributes / USPs and what sets you apart from your peers?

Ashraf Yehia (AY): Safety is a way of life and determines all of our professional activities at Eaton.

One of our most recent new products is the CGLine+, a user-friendly monitoring system for emergency lighting, which aims to eradicate the cost and time pressures associated with manual maintenance checks in commercial buildings.

The new system is fully compliant with EN 62034 standards, which aims

to eradicate the cost and time pressure associated with manual maintenance checks in commercial buildings.

The CGLine+ controller offers next generation monitoring, with the ability to monitor up to 800 luminaires per controller. Internet connectivity allows the interconnection of multiple controllers to allow advanced monitoring and automatic testing of up to 25,000 luminaires from a single control point where open system interfacing to building management systems is also supported.

GSC: What industrial verticals do Eaton products find application in?

AY: Eaton provides emergency lighting and fire detection systems for buildings,

Eaton Middle East

commercial and residential, and we have noticed an increase in the levels of regulation that are being adhered to.

The regulation set by the Civil Defence offer a much higher standard of regulation.

All those involved in the construction process are placing greater importance of meeting and exceeding the standards that are set.

The performance of our life safety business is consistent, and we spend a lot of time with our customers helping them to understand the way to make a building safe from a number of different perspectives.

Eaton regularly holds training sessions for consultants and end-users to expand their knowledge of the industry and also Eaton solutions.

All our solutions are designed with safety at the core. This is not limited to our life safety division products. There is much greater emphasis being placed on how power solutions can keep buildings safe and mitigate risks cause by power fault or failure.

GSC: What products and services has Eaton launched at Intersec 2020?

AY: On stand, Eaton demonstrated a range of fire systems, as well as emergency lighting displays, fire pump controllers and notification speakers. Our resident experts were on hand to discuss specific applicants and bespoke solutions that are regularly designed for customers across the Middle East.

We showcased our new innovative ‘Adaptive Evacuation’ technology which provides commercial buildings with the

potential to redirect building occupants to safety by adjusting the directions displayed according to the threat – such as a red cross to indicate that a particular exit route has been blocked.

It is an ideal product for events such as collapsed buildings, floods and general security threats. Our adaptive signage also consists of the high-fidelity voice evacuation which signals people to safety.

Eaton products are innovative solutions for every industry- from local grocery shop to institutional buildings across the region.

We have a great reputation for producing next-generation products globally and providing iconic projects with our state-ofthe-art products.

throughout the region. We will continue to maintain a consistent presence where we have great visibility and strength to pursue key projects across the Middle East. n

The CGLine+ controllers to allow advanced monitoring and automatic testing of up to 25,000 luminaires from a single control point

GSC: Overall, how would you describe your participation at Intersec 2020?

AY: The exhibition gives us an opportunity to leverage the market, meet new customers while maintaining and building on our existing relationships. It is one of the leading fire safety exhibitions in the region with institutions from across the world participating and an ideal opportunity to showcase your solutions. It is a perfect fit for Eaton to be amongst these organisations.

GSC: How significant is the Middle East for Eaton and how did you fare in 2019?

AY: The Middle East market is very important for Eaton as we have a wide footprint and portfolio

Ashraf Yehia

Managing Director, Eaton Middle East Yehia has held this position since February 2019 and is responsible for the company’s operational and commercial business in the Middle East and increasing the organisation’s footprint in the region.

Prior to this, Yehia joined Eaton in 2012 as part of Eaton’s acquisition of Cooper Industries and was part of part of the team that put together a successful transition between the two organisations.

Yehia was General Manager–MENAI for Eaton Crouse Hinds and B-Line from 2012-2019.

He was integral in setting up a distribution facility in Dammam, Saudi Arabia to manufacture and produce B-Line products.

In 2019, Ashraf was named one of 50 most influential people in the GCC Utilities industry, by the Utilities Middle East magazine Power List.

He was also listed amongst the Top 50 Channel Chiefs in the region by Channel Middle East publication.

Yehia holds an Engineering degree from Ain Shams University, Cairo, Egypt. Yehia is currently based in Dubai.

FEBRUARY 2020 51

Eaton Middle East

Eaton emergency lighting self-contained and adaptive for evacuation-building.

2019 was a successful year for us as we consolidated our position as one of the market-leaders in the life safety industry and we aim to maintain and exceed what we achieved last year.

GSC: What’s your outlook for 2020? What potential do you foresee going forward?

AY: Eaton will continue to develop, evolve and push through our products throughout the region. Our strategy in 2020 will be to have a clear focus on the areas of business where we have clear market differentiation.

2020 is also an exciting year for the Middle East with great projects and events taking place throughout the region. Expo 2020 will once again put the UAE on the global map; the Vision 2030 is accelerating projects in Saudi Arabia and the ambitions the government is showing bodes well for the coming year.

GSC: What are your expansion plans for the region?

AY: Eaton has a reference list of over 1000 projects across the region, from tall commercial & residential buildings, 52 FEBRUARY 2020

stadiums and the local grocery shop. Our latest solutions can be seen across iconic projects such as the newly developed Bahrain International Airport which features a range of our CEAG solutions across the new passenger terminal building in Manama. The company’s forerunner Concordia Elektrizitäts-Aktiengesellschaft (CEAG) produced lamps for use in mines susceptible to firedamp that fulfilled the highest requirements posed on a safe source of light.

We have also provided our CEAG range for the largest mall in Oman, owned by the Al Futtaim group and our range of fire safety and emergency lighting systems have been installed at the new Riyadh Metro in Saudi Arabia.

Winning these prestigious projects shows the trust in our solutions and how the team is navigating through tight specifications which are required by our customers to implement and be recognized across these iconic projects that adorn the region.

GSC: So you envisage any production facilities in the future in the region?

AY: Eaton currently has two production facilities in the Middle East; Dubai and Dammam.

The Dubai facility caters for the lowvoltage products and solutions while the Dammam factory produces B-line products.

Both of these facilities give us the ability to serve strategic locations across the Middle East and various industries; commercial, residential and Oil & Gas. We will continue to maintain and consolidate our product portfolio with these two facilities.

GSC: What is the vision for Eaton for the short and long-term futures?

AY: Eaton serves the Oil & Gas, marine, hydraulics and the general industrial sector, working diligently to provide the latest solutions. We work in a fast-paced market which has seen, and will continue to witness, significant changes and demands.

We must ensure we are working closely with our customers and partners to understand the needs to the market and how Eaton can support the demand for power that these changes bring.

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WFES 2020

The World Future Energy Summit 2020 concludes successfully WFES 2020 hosted in Abu Dhabi, delivered extraordinary business success. There was strong growth in international attendance up 11% from the 2019 event and around 840 Global Brands represented.

T

he recently concluded World Future Energy Summit (WFES) 2020 has seen another year of success, with independent onsite research projecting that buyers attending the event will place orders worth billions of dollars within the next annual business cycle, offering the perfect business platform as the Middle East’s largest future energy and sustainability event.

Further demonstrating Abu Dhabi’s position at the business crossroads between Europe, Asia and Africa, international attendee numbers grew by 11 percent compared with 2019, while the number of countries represented reached 125, up around 17 percent year-on-year. Attendance during the four days of the World Future Energy Summit is estimated at close to 34,000.

Records of at least 27 memoranda of understanding (MoUs) were signed during the event, which hosted 227 international

54 FEBRUARY 2020

companies and 72 from the UAE, showcasing around 840 global brands.

including a very strong 155 percent increase in exhibitors from India.

Potential for renewable energy growth

Boost for CLIX

“This is a great result and shows once again that the market for renewable energy, and other sustainable technology, continues to expand,” said Grant Tuchten, Group Event Director, World Future Energy Summit.

As the premier renewables and sustainability business platform in the Middle East, the 2020 edition attracted a strong contingent of GCC exhibitors, including Al Marafiq, Saudi Electricity Company (SEC), and Saudi Aramco from Saudi Arabia, as well as the GCC Interconnection Authority (GCCIA).

This edition also demonstrated the World Future Energy Summit’s increasing importance to markets neighbouring the GCC, such as the sub-continent and Africa,

Start-ups also performed strongly at the World Future Energy Summit, with the event supporting new ideas through the Climate Innovation Exchange –CLIX, which matched entrepreneurs and investors to accelerate growth for innovative business concepts. A total of 50 start-ups exhibited this year, including 41 as part of CLIX. The World Future Energy Summit, first hosted by Masdar as part of Abu Dhabi Sustainability Week since 2008, is a global platform for accelerating the world’s sustainable development, is held annually at Abu Dhabi National Exhibition Centre (ADNEC).

The next edition of the World Future Energy Summit will be held 18 to 21 January, 2021.

WFES 2020

27 MoUs were signed during the event, which hosted 227 international companies and 72 from the UAE, showcasing around 840 global brands.

GCC boosts 9-fold renewable energy growth at WFES Corporation, and Masdar take UAE innovations to a global audience The GCC’s renewable energy market, which grew nine-fold to US$ 11 billion from 2008 to 2016 according to IRENA, was further boosted by the Energy Expo & Forum and the Solar Expo & Forum held from 13-16 January 2020 at the World Future Energy Summit.

Taking Abu Dhabi’s government-led renewable energy initiatives to a global level, exhibitors and speakers included the Abu Dhabi Department of Energy; the Abu Dhabi Power Corporation and its subsidiaries the Emirates Water and Electricity Company (EWEC), Abu Dhabi Distribution Company (ADDC), and TRANSCO; and Masdar showcasing their latest projects and innovations.

Solar Power

Solar Expo exhibitors included solar power developers such as Constructions Industrielles de la Méditerranée (CNIM), EDF, Engie Group, Marubeni, Skypower, and Taaleri Energia; smart grids firms Huawei, Ingeteam, Fronius, and Sungrow; solar trackers NEXTracker, PiA Solar, and Soltec; and solar panel manufacturers LONGi Solar Technology.

Energy Forum sessions included insights by senior executives from regional and international public and private sector leaders, such as the China National Nuclear Corporation, the Clean Energy Business Council MENA, the GCC Interconnection Authority, GE Power Digital, the Japan Bank for International Cooperation, Masdar Clean Energy, and TRANSCO. Speakers included HE Mohammed Bin Jarsh AlFalasi, Undersecretary, Abu Dhabi Department of Energy, who delivered the keynote address, as well as discussing the world’s largest virtual battery plant which went live in Abu Dhabi during 2019.

He also participated in a panel discussion on the future of electricity power in the GCC, joined by other government and industry leaders including HE Dr. Abdul Hussain Ali Mirza, President, Sustainable Energy Authority, Bahrain.

Also sharing their knowledge on expert panels were Eng. Ahmed Ali Al-Ebrahim, CEO, GCC Interconnection Authority, as part of a keynote panel discussion on energy transition as a grid stability challenge; and Prof.

James Momoh, Chairman, Nigeria Electricity Regulatory Commission, in a discussion on financing for storage and PV projects.

Abu Dhabi Department of Energy signs MoU with Marubeni Corporation Agreement to explore energy efficiency and hydrogen opportunities Based on its strategy of cooperating with local and international entities working in the capital’s energy sector, the Abu Dhabi Department of Energy (DoE) has established a partnership with Marubeni Corporation (Marubeni), a Japanese trading and investment firm that is one of the largest investors in Abu Dhabi’s power sector.

A Memorandum of Understanding (MoU) was struck between DoE and Marubeni at the Abu Dhabi Sustainability Week 2020. The agreement was signed by HE Eng. Mohammed Bin Jarsh Al Falasi, Undersecretary, Abu Dhabi Department of Energy, and Ichiro Takahara, Chief Executive Officer, Power Business, Energy & Metals Group of Marubeni.

“Our partnership with Marubeni, one of the largest investors and developers in the power sector of Abu Dhabi, is strategic at all levels. This MoU represents a continuation of our existing relationship with Marubeni, a partner on Noor Abu Dhabi project – the largest solar power plant in the country,” said HE Eng. Al Falasi.

“We will harness our potentials and expertise in promoting investments in Abu Dhabi’s power sector, as the emirate pays great attention to the sector, and to finding innovative solutions to achieve sustainable development based on clean and renewable energy,” commented Takahara.

Three year agreement

The 3-year agreement facilitates cooperation between the two parties in the spheres of improving the water and electricity usage, and exploring the commercial viability of producing and using hydrogen in Abu Dhabi.

As per the agreement, the two parties will work to identify and explore areas of cooperation and to find ways of efficiency in water and electricity use, researching the technical and commercial feasibility of producing hydrogen from clean energy sources in Abu Dhabi, and the opportunities for its final use and export. n

FEBRUARY 2020 55

Intersec 2020

Middle East commercial security market slated for 16% annual growth through to 2025 Global trade event reaffirms Dubai’s position as a hub for pioneering security and safety products and solutions

I

ntersec, the region’s leading trade fair for security, safety and fire protection, recorded its highest rebooking rate with 150 exhibitors signing up for the 2021 event immediately after January’s show which represents a 200% increase from 2019’s onsite recommitments.

The rebookings come in the wake of a 6W Research report which forecasts the Middle East’s commercial security market will grow 16% a year to 2025 to be worth US $8.4 billion.

“This strong rebooking performance acknowledges the high potential of the regional security market and Intersec’s ability to reach key buyers,” said Andreas Rex, Show Director for Messe Frankfurt Middle East, which organises the Intersec exhibition and conference series.

Visitor numbers up A pre-audited visitor count from January’s event – the 22nd in the annual series which ran from 19-21 January shows Intersec 2020 attracted 33,584 from 135 countries to Dubai World Trade Centre.

With over 1,000 exhibitors from 56 countries including two-thirds of the world’s top 50 security manufacturers, longestablished exhibitors were impressed by the show’s expanding geographic reach.

Amine Sadi, Regional Channel Sales Manager, Milestone Systems A/S, a software manufacturer of open platform IP video surveillance software, said at its 12th Intersec showing in January, the company and its community partners still managed to attract potential clients.

“We found this year that several important potential clients arrived from markets we had not anticipated,” explained Sadi. n 56 FEBRUARY 2020

Jamil Al Asfar, Senior Sales Manager Middle East & Africa, IDIS

Andreas Rex, Show Director, Messe Frankfurt Middle East

Intersec 2020

6W Research report forecasts the Middle East’s commercial security market will grow 16% a year to 2025 to be worth US $8.4 billion

FEBRUARY 2020 57

Intersec 2020

IDEMIA’s award-winning biometric technology, the MorphoWave Compact, powered by Artificial Intelligence

Richard Mikhael, President, Middle East & Africa, IDEMIA

Innovation—the way forward IDIS, the video analytics experts which has pioneered deep learning analytics (IDLA) technology, said Intersec 2020 stood out for the sectoral range of its visitors.

“There was an impressive range of serious buyers with interest in IDIS end-to-end video solutions from systems integrators and end users working in retail, banking, healthcare, hospitality and corporate sectors, from across the region and beyond,” explained Jamil Alasfar, Senior Sales Manager, IDIS Middle East & North Africa.

At Intersec 2020 IDIS announced a major video surveillance project it has secured 58 FEBRUARY 2020

with the Central Bank of Jordan.“This led to some significant conversations with buyers about our new AI offerings and latest cameras, which we expect to progress very quickly,” added Alasfar.

Intersec 2020’s powerful Intelligence Forums drew experts for an intense conference series which ran over the show’s three days. The Intelligence Forums included conferences, roundtables and live demos hosted by the Future Security Summit, the Fire Safety Conference, Government Summits and the Intersec ARENA. Behak Kangarloo, CISO Programme Director of BKTRON, UAE was both a speaker and a delegate at the ARENA which, he believes, now serves as a

solutions catalyst for the industry.

“The conferences are informative and tackle key topics in the security domain.

These sessions also allow us as delegates and speakers to connect with each other in the same domain, discussing challenges and solutions in the security sector,” asserted Kangarloo.

“We are already working on content framework for next year’s Intersec Intelligence Forums ensuring we keep totally abreast of new industry developments and the fast-moving technology advances which are shaping it,” added Rex. The event will return from 24-26 January in 2021 at Dubai World Trade Centre.

ADAC-ERC Pact

Abu Dhabi Airports and the Emirates Red Crescent Authority sign cooperation The agreement will boost cooperation in charitable and humanitarian aid

A

bu Dhabi Airports recently announced the signing of a cooperation agreement with The Emirates Red Crescent Authority (ERC) to enhance its role in community, charitable and humanitarian initiatives.

The new agreement also defines frameworks of cooperation humanitarian services and fundraising and supports relevant government strategies at a local and international level.

The signing took place at an official ceremony held at the new Midfield Terminal Building in the presence of HE Sheikh Mohammed Bin Hamad Bin Tahnoon Al Nahayan, Chairman of Abu Dhabi Airports, Dr. Mohammed Ateeq Al Falahi, SecretaryGeneral of ERC, and Bryan Thompson, CEO of Abu Dhabi Airports, and several officials, leaders and employees from ERC.

ADAC-ERC tie Under the agreement, Abu Dhabi Airports will explore initiatives to support local community and international humanitarian projects supervised by the ERC. The Airports Company will also promote ERC within terminals at Abu Dhabi International Airport.

“We take great pride in partnering with organizations such as The Emirates Red Crescent Authority which serves as a beacon of hope to people around the world through its effective and compassionate disaster response and humanitarian development efforts,” remarked Sheikh Mohammed Bin Hamad Al Nahayan.

“Abu Dhabi Airports is a key partner and supporter of the ERC as we strive to achieve our humanitarian and development goals at home and abroad. ERC is committed to establishing and strengthening collaboration with national institutions, in order to better serve those under its care and enhance the reach and impact of its

projects and programs,” noted Dr. Al Falahi.

Streamlining aid flow The ERC continues to make great strides in developing mutually beneficial partnerships with national entities, enabling the substantial expansion of its humanitarian and disaster relief efforts around the world.

Abu Dhabi Airports is a leading example of an organization that not only supports the country’s economic growth and prosperity but also contributes to humanitarian efforts around the world through its corporate social responsibility programmes. n FEBRUARY 2020 59

Thought Leadership

Technological innovation in the Fourth Industrial Revolution The technological juggernaut is transforming the logistics and supply chain industry in the region and globally. In this contribution, Eugene Mayne, Group CEO, Tristar Group, examines the repercussions and disruptions attributed to the Fourth Industrial Revolution and outlook for the future.

W

e are living in the Fourth Industrial Revolution, and everything around us is being disrupted. The pace at which new creative ideas are transforming business models today is rapid, and businesses need to invest in technological innovation in order to survive.

Looking at the logistics and distribution industry, the business landscape has changed dramatically in the last decade, with companies turning to automation and technology solutions to streamline operations and reduce costs, while also looking to digital technologies to provide better service to clients.

Blockchain, for instance, gives logistics businesses the ability to provide irrevocable verification and oversight to complex transportation processes for customers. It also enables businesses to eliminate the risk of human error and optimise warehousing manpower, scheduling and deliveries, which results in fewer manual transactions.

Additionally, the technology can make shipping faster and more efficient by improving data visibility and demand management.

Tristar Group was one of the first logistics companies in the UAE region to adopt blockchain technology, and will not be the last. By adopting blockchain technology, the Company has been able to seamlessly tie together its warehouse management system and transportation platforms, allowing key customers to access a single secure platform

60 FEBRUARY 2020

protected by military grade encryption.

A recent Boston Consulting Group (BCG) survey found that 88% of transport and logistics professionals think that blockchain will disrupt the industry. We expect other businesses to follow suit and champion the use of blockchain in their operations. The global blockchain market may be worth over $23 billion by 2023.

Where to next?

Customers increasingly expect to receive goods and services faster and at lower delivery costs, so logistics businesses are tasked with finding more efficient and flexible processes. Space travel and Hyperloop for mobility are just some of the radical innovations that could accelerate the disruption of traditional logistics businesses.

Another area is in analytics and data processing. The Artificial Intelligence (AI) market in the supply chain and logistics industry was valued at approximately US$ 502.9 million in 2017 and is expected to grow at more than 45% over the forecast period to 2025.

At present, many of the sector’s newest technological innovations are focused on storing and distributing hazardous products safely. Tristar Group, for instance, recently fitted fifty vehicles with Driver Fatigue Management Systems which use an infra-

red camera system to track a driver’s eye movements. The Company has also recently acquired new trucks with the latest active and passive safety technology to help avoid dangerous collisions.

Socioeconomic investment Fuel is a major resource used in the operations of logistics businesses, which is why as a sector we should support the advancement of the 17 UN Sustainable Development Goals and look for technological ways to reduce fuel consumption.

The potential for technology and innovative global businesses to find answers to many of the socioeconomic challenges facing the world today is inspiring. From climate change to community development, we know that digital breakthroughs driven by business imperatives impact more than the bottom line. Technology should be seen as a long-lasting investment in communities, providing a ‘digital-dividend’ that compounds over time.

Everyday infrastructure across all sectors is being transformed by new technology embedded throughout the supply chain.

The future of technology in the logistics industry is an exciting space and we look forward to seeing where the industry will go in 2020 and beyond. n

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