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Talking point

Digital

Trucks

Oweis Zahran, the force behind launching innovative solutions

Five Benefits of Cloud-based Logistics Management

UD Trucks’ New Quester lands in the MEA region

Connecting trade professionals with industry intelligence

Logistics News ME conducted a round table with industry experts to discuss the various trends that are taking place in the trucking industry.

MAY 2019


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Contents

Contents

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Website: www.CBNme.com/logistics-news twitter: @logisticsnewsme Facebook: /LogisticsNewsME

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R e a d a l l t h e l at e s t i s s u e s o n I s s u u

Start 10 | News

Features 22 | Digital 24 | Interview 26 | Cover Story 34 | Trucks 44 | Talking Point 48 | Report

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Ed i to r ’ s L e t t e r

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A note from the editor Kasun Illankoon

CEO Wissam Younane wissam@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Group Publishing Director Joaquim D›Costa

A quick comment on the upcoming Expo 2020 Dubai: With Expo 2020 Dubai a year and a half away there are many industries that are primed to benefit from such an event. The logistics industry could be the biggest winner of this event as Expo 2020 Dubai have further speeded up the pace of allocating contracts to thousands of local and foreign firms to ensure timely preparation of the event, which is set to be the largest of its kind in the Arab World. When foreign companies get contracts in the UAE, they need professional support of logistics specialists with wide. Thanks to the increased momentum of Expo 2020 preparations, the logistics sector in the UAE – which according to the 2019 Agility Emerging Markets Logistics Index ranks first in the region and third globally – is witnessing a business boom local and international network to move their set up and equipment to the Gulf country.

Expo 2020 is expected to drive the logistics and supply chain segment even further and cement the UAE’s position as a global leader in logistics. In this edition Logistics News ME there is a major focus on trucks due to it being such a crucial element in the logistics industry. We conducted a round table discussion on the recent trends of the truck industry as experts discuss on sustainability, safety, and technological advancements in the industry. We also get to interview a ready-made entrepreneur about his upbringing and how the businesses he began in the automotive industry has seen a wave of success. Kasun Illankoon Editor, Logistics News Middle East

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Regional News

Regional News A n u p dat e f r o m a r o u n d t h e r e g i o n Shipping

Gulftainer Handles Container Volume of Two Million TEUs at Iraq Container Terminal The Iraq Container Terminal (ICT) at Umm Qasr Port in southern Iraq, operated by Gulftainer, has achieved a major milestone, registering container volume of two million twenty-foot equivalent units (TEUs) since Gulftainer started its operations in the region less than nine years ago. Gulftainer was the first foreign investor to launch a joint venture with the General Company for Ports of Iraq (GCPI) in Umm Qasr Port, starting operations at the Iraq Project Terminal on Berth 8 in the South Port in August 2010, followed by ICT on Berth 11 in the North Port in 2012. The company has invested heavily in ICT to develop a 376 m berth and container storage area within the 342,000 sq m terminal that currently has the capacity to handle in excess of 400,000 TEUs per year, allowing for future volume increase. The berth is equipped with two Mitsubishi ship-to-shore gantry cranes, supported by two Gottwald mobile harbour cranes with a 100 t lifting capacity, in addition to container-handling equipment including 18 reach stackers, two empty handlers and 28 terminal tractors. ICT currently employs 250 locals and a support team of 50 expatriates. Since November 2018, 10 | Logistics News ME | May 2019

Gulftainer also operates the Iraq South Terminal (IST) on Berth 4 in the South Port that features 230 m of quay and a yard handling capacity of 100,000 TEUs per annum. Nic Gray, General Manager of Gulftainer’s operations in Iraq, said: “The latest developments at Iraq Container Terminal and Iraq South Terminal in 2018 mark impressive milestones for Gulftainer in Iraq. The company offers reliable services, fast vessel turnarounds, competitive rates, 48-hour customs clearance, dedicated in and out gates, and an on-terminal customs scanner. With its

extensive experience in terminal management that dates back to 1976, Gulftainer’s efforts have helped enhance the capacity of these terminals to meet future growth.” He added: “In 2019, Gulftainer plans to expand its storage space by introducing two new yards and increasing ICT’s annual handling capacity to 650,000 TEUs. In addition, the company will launch a new customer web portal, allowing for container and vessel tracking, generating online proforma invoices and sharing up-to-date terminal information.” Gulftainer celebrated the latest achievements at

an event held in Iraq that drew the participation of Dr Safaa A.J. Alfayyadh, Director General of the Iraqi Port Authority (IPA), port directors, senior officials from customs and borders authorities, and other distinguished guests. Speaking at the event, Ibrahim Serhan, Middle East Regional Manager at Gulftainer, said: “The success of ICT reflects Gulftainer’s commitment to implementing the latest best practices in port management. We thank IPA and the Iraqi Ministry of Transport for their support that has enabled us to achieve this significant milestone.” For his part, Dr Alfayyadh said: “On behalf of His Excellency Abdullah Luaibi, Minister of Transport of Iraq, and IPA, we congratulate Gulftainer on this latest achievement that is attributed to the efficient management and excellent operational capabilities of the company. Gulftainer is a strong partner to IPA, owing to its professionalism and credibility.” To mark the occasion, Gulftainer presented commemorative trophies to Dr Alfayyadh, directors of ports and customs authorities, and representatives of other entities working in the port. www.cbnme.com


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Dubai ranks first in Middle East and ninth in world’s top maritime capitals in 2019

Dubai has moved up in the ranking of the world’s top 10 maritime capitals in 2019, the latest in its string of achievements that has made the emirate a globally competitive maritime hub. The emirate took the 9th spot this year, up from its 10th rank in 2017, according to a recent report issued by Menon Economics and DNV GL, the global organizations that specializes in benchmarking top maritime capitals of the world. The report disclosed today (Wednesday, April 10, 2019) in Singapore, surveyed 200 experts and high-profile officials from leading maritime companies worldwide. Around 40 per cent of the experts were from

Europe, 30 per cent from Asia, and 30 per cent from the US, Middle East, and Africa. H.E. Sultan Bin Sulayem, Group Chairman and Chief Executive Officer of DP World; Chairman of Ports, Customs & Free Zone Corporation and Chairman of DMCA, said: “We are delighted to achieve this new global achievement that demonstrates the progress of the maritime sector in Dubai led with a leadership vision of H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai and H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, and his support to the industry and

keen efforts to enable out teams to achieve better results in all areas related to maritime sector. I would also like to thank the DMCA team for its work and dedication to ensure improved local maritime services at all levels.” H.E. Bin Sulayem added: “The remarkable progress made by Dubai as one of the world’s best maritime capitals for 2019 is not surprising as it serves as a continuation of the path towards excellence to become number one in the world. DMCA’s focus on research and development (R&D) and innovation to develop integrated logistics programs and advanced infrastructure and legislation is paying off as we ensure the highest standards of

efficient maritime operations, occupational safety, and better environmental practices to reach global leadership. We are currently implementing an integrated and impactful portfolio of initiatives to enhance the sector’s competitiveness and guarantee its contributions to the country’s sustainable growth and economic diversification strategy. Promoting innovation, technology, and sustainability has enhanced the international community’s confidence in Dubai. The success of our ambitious plans, supported by our fruitful cooperation with our government and private sector partners makes Dubai and the UAE an influential global force in the maritime industry.” Logistics News ME | May 2019 | 11


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Regional News

Aviation

Emirates completes installation of Expo 2020 Dubai livery on 40 aircraft

Emirates has completed the installation of bespoke Expo 2020 Dubai liveries on 40 aircraft, with its final A380 aircraft emblazoned in the distinctive orange ‘opportunity’ decal rolling out of the Emirates Engineering hangar. The first decal was unveiled in 2017 on an Emirates Boeing 777-300ER aircraft decorated in the blue ‘mobility’ decal. Since then, Emirates’ mini-fleet of Expo 2020 Dubai aircraft have collectively flown to 134 destinations across the airline’s global network, travelling 66 million kilometres on over 15,000 flights, amplifying the message of Expo across borders. Watch all of Emirates’ special Expo 2020 liveried aircraft take off and land within the Emirates network. EXPO 2020 Dubai, will be held between 20 October 2020 and 10 April 2021. His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline & Group, commented on completion of the unique Expo 2020 liveries: “As we begin to gear up for Expo 2020 Dubai, we are proactively tapping into the power of Emirates’ network to spread awareness and capture the world’s attention around the themes of this global event with our mobility, opportunity and sustainability liveries. Connectivity is the lynchpin that brings together new ideas, fosters global dialogue, and helps us navigate through change. Emirates will play a key role in opening up opportunities for visitors to experience this truly global event, as it offers non-stop flights to Dubai from many of the Expo participating 14 | Logistics News ME | May 2019

countries, and 70% of the 25 million people targeted to visit Expo 2020 are expected to utilise air transport.” Her Excellency Reem Al Hashimy, UAE Minister of State for International Cooperation and DirectorGeneral of Dubai Expo 2020 Bureau, said: “With less than a year and half left until Expo 2020 opens its doors and welcome millions of visitors from around the world, we are very proud that our Premier Partner, Emirates Airline, is carrying our message around world through its incredible destination network.” “Emirates’ aircraft carry more than just the colours of our sub-themes of Sustainability, Opportunity, and Mobility. They also carry the UAE’s message of the power of international cooperation to chart a better future for all, exemplified by an Expo that unites 190 countries and millions of visitors here in Dubai.” The source of inspiration for the Expo 2020 Dubai decals was the event’s logo, based on

a 4,000 year old ring excavated at an archaeological site in Dubai. The aircraft decals are comprised of circles and hoops encircling a ring, in three distinct colours reflecting the sub-themes of Expo 2020 Dubai – amber tinged orange for ‘opportunity’, emerald green for ‘sustainability’ and cerulean blue for ‘mobility’. The Expo 2020 Dubai decals will remain on the 40 aircraft until April 2021. One of the largest decal projects ever undertaken at the Emirates Aircraft Appearance Centre, it took 15,000 hours spanning over 14 months to apply the Expo 2020 decals on 20 Boeing 777 aircraft and 20 Airbus A380 aircraft. The Expo 2020 Dubai decals are also among the largest to be applied on the Emirates Boeing 777 and Airbus A380 fuselages, in addition to covering each aircraft type’s engine cowls. Emirates’ over 1,700 weekly departures from Dubai facilitate the growth of trade, tourism, connectivity, and opening more opportunities for job

creation, inward investment, and a more competitive economy. According to Oxford Economics, Dubai has direct passenger flight connections to 149 cities with populations of over 1 million people, serving a potential export market of 916 million people, or 13% of the world’s population. These air transport links will provide the chance for visitors to experience and participate in Expo Dubai 2020, as well as facilitate the movement of goods for exporters participating in Expo 2020 through Emirates SkyCargo. During Expo 2020, Emirates will be showcasing innovations and new technology in commercial aviation around sustainability. Along with its own operations, Emirates also contributes to responsible tourism through its support of important conservation initiatives such as the Dubai Desert Conservation Reserve in the UAE, the Wolgan Valley in Australia’s Blue Mountains, and United for Wildlife’s efforts to combat the illegal wildlife trade. www.cbnme.com


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Saudia Cargo gains Ground Service Provider Certificate (GACAR 151)

The General Authority of Civil Aviation (GACA) has approved Saudi Airlines Cargo Company’s completion for all technical & operational standards achieving high levels of compliance with the global rules & regulations of aviation security & safety by providing it the operating license for ground handling service providers (GACAR 151) during the Global Aviation Summit that occurred in Riyadh under the patronage of Custodian of the Two Holy Mosques, on April 1-2, 2019. On this auspicious occasion Saudia Cargo’s CEO, Omar Hariri thanked the General Authority of Civil Aviation for their trust & consistent support to the Air Cargo & Ground Handling industries & said: “This license will further enhance Saudia Cargo’s ground handling capabilities & opportunities thus increasing the logistical income into the Saudi economy in line with the Saudi vision 2030 that aims to transform the Kingdom into a global logistics hub.” Saudia Cargo provides a variety of ground handling services for international air cargo carriers operating through the Kingdom of Saudi Arabia’s main international airports (Jeddah, Riyadh, Dammam and Al Madina). Fully equipped to handle different aircraft and cargo types, Saudia Cargo serves many different airlines and express companies with the ability to handle more than 1.7 million tons of cargo per year, supported through a dedicated and trained team and well-equipped warehouses.

Sustainability

Brambles among the top three sustainable companies in the world

Brambles, the leading supplychain logistics company operating in more than 60 countries, primarily through the CHEP brand, has been named the second most sustainable company in the world by Barrons Magazine. Barrons, an American weekly newspaper published by Dow Jones & Company, together with Calvert Research and Management, took the 1,000 largest publicly held companies in 24 developed-country markets and evaluated them across five stakeholder categories. Brambles was recognised by Calvert Research for their sustainable sourcing and their workplace labor performance. According to the research company, Brambles conducts an employee engagement

survey and uses the confidential feedback to improve operations. It also provides online training and one-on-one coaching for employees and has pioneered pallets made from waste. Brambles Head of Global Sustainability, Juan Jose Freijo. said: “We are extremely proud to be recognized as a world-wide sustainability leader. The long-term, sustainable value that we create for our stakeholders is generated by our global scale and circular business model, which defines not just how we do things but who we are. We aim to support the UAE leadership’s efforts towards Sustainable Development Goals (SDGs) of the nation by creating a better planet for all of us.”

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Regional News

Logistics

GAC Abu Dhabi provides integral logistics support for Special Olympics World Games GAC Abu Dhabi played a vital role in ensuring the success of Special Olympics World Games Abu Dhabi 2019, the largest sports and humanitarian event in the world this year. Abu Dhabi was the first city in the Middle East to host a World Games. The capital of the Emirates welcomed more than 7,000 athletes and 3,000 coaches from 195 nations – all of whom needed equipment and infrastructure from around the world. GAC Abu Dhabi was appointed to help ensure everything was where it should be, when it was needed. Confidence

Youssef El Khouri, Logistics Manager for the Local Organisation Committee of Special Olympics World Games Abu Dhabi 2019, was impressed with GAC Abu Dhabi’s ability to deliver a high standard of service. “Not only did GAC Abu Dhabi supply logistics and warehousing services, they also delivered a fantastic service supplying manpower across ten venues between Dubai and Abu Dhabi,” he says. “Working with them gave us the confidence that we would have seamless interactions across these services – they delivered an outstanding and faultless service consistently and effectively.” The World Games presented GAC Abu Dhabi with an ‘Olympic-sized’ logistics challenge. The company responded by deploying 177 dedicated staff across the Games’ ten venues to install all of the equipment used by the 16 | Logistics News ME | May 2019

athletes and the supporting workforce, which included up to 20,000 volunteers. It was also charged with receiving essential equipment for 24 different sports. In all, the GAC Abu Dhabi team clocked up more than 22,000 man-hours without a single HSSE incident. The logistics hub for the Games was based at Khalifa Industrial Zone Abu Dhabi (KIZAD), conveniently close to GAC Abu Dhabi’s newly opened warehouse. Clear communications between sites ensured smooth operations throughout the Games.

The GAC Abu Dhabi team handled about 4,900m³ of cargo arriving through Abu Dhabi and Dubai airports, with its fleet of trucks and trailers making 200 delivery trips. After the Games, 3,700m³ of cargo was returned. GAC Abu Dhabi also provided a range of supporting services including specialised packing and crating, inventory management, stock replenishment and on-site support for venue coordinators. Proud

“We are extremely proud to have been part of the world’s largest sporting and

humanitarian event,” says Richard Rees, GAC Abu Dhabi’s Business Manager – Logistics. “With venues in both Abu Dhabi and Dubai, our KIZAD facility proved to be the perfect base from which to coordinate our services around-the-clock before, during and after the Games. “Our success in supporting this unique event owes a great deal to the strong bonds we forged with other stakeholders during last year’s Middle East North Africa (MENA) Special Olympics Regional Games, which were also held in Abu Dhabi.” www.cbnme.com


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Quote The surge in ecommerce is driving brands to explore new markets, but many find their operations hindered due to challenges within the cross border delivery journey which is where DHL can provide effective solutions.” DHL Express CEO, Middle East and North Africa, Nour Suliman on their strategic partnership with Vinculum Solutions

Top 5 online

1

Five Myths about Transportation Management that’s Hurting your Business

2

Gulftainer Handles Container Volume of Two Million TEUs at Iraq Container Terminal

3

Aramex inaugurates new e-Commerce fulfillment centre in Dubai

4

Brambles among the top three sustainable companies in the world

5

KONE MEA opens its first Regional Distribution Center (RDC) in Dubai

Awards

FedEx Express among Top 10 companies to work for in the UAE

FedEx Express, the world’s largest express transportation company and a subsidiary of FedEx Corp. (NYSE: FDX), has been recognized for the ninth consecutive year as one of the top places to work in the UAE. The company has been ranked sixth, moving up four places from last year. With more than 300 organizations in the GCC participating in the survey and audit, the ranking developed by the Great Place to Work Institute is based on a detailed assessment of workplace excellence, together with an anonymous online survey completed by each company’s team members. “Our success is testament that we remain true to our People-Service-Profit (P-S-P) philosophy by providing team members the best training and tools, a safe and healthy work environment, fair compensation and benefits, opportunities for promotion

and recognition for jobs well done. With an Open-Door policy and opportunities such as the FedEx Virtual Academy and a Tuition Assistance program, we are committed to continue creating a diverse, inclusive and collaborative environment for our team members,” said Taarek Hinedi, vice president, Ground Operations FedEx Express Middle East and North Africa. FedEx Express has several programs in place to ensure that P-S-P is a way of life for its employees. This includes a recognition and reward program, a policy to support promotion from within, and a leadership evaluation process aimed at supporting those who wish to move into management positions. “I want to thank our team members for their continued commitment and dedication, and their role in making FedEx a great place to work, year after year,” Taarek said. Logistics News ME | May 2019 | 17


Regional News

Manufacturing

ZonesCorp signs agreements with top automotive manufacturers, suppliers for Rahayel City Hub

ZonesCorp, the largest operator of purpose-built industrial zones in the United Arab Emirates, today announced that it has signed agreements with some of the UAE’s leading automotive companies and service providers seeking to base their operations in Rahayel City, a world class, integrated auto hub developed by ZonesCorp in Abu Dhabi. On the sidelines of its participation in Cityscape Abu Dhabi 2019 that is 18 | Logistics News ME | May 2019

currently underway at the Abu Dhabi National Exhibition Centre, His Excellency Saeed Eisa Mohammed Al Khyeli, Director General of ZonesCorp, signed the agreements with automotive companies including Sandstorm Automotive Factory, Top Speed Car Tuning, Jernas, MotorX, Monster Team and Princess Cars, specializing in vehicle manufacturing and tuning, service workshops and

maintenance centers. The signing of the agreements took place at ZonesCorp’s stand in Cityscape Abu Dhabi in the presence of senior representatives of the concerned entities. As per the agreements, an area of smart and fully serviced spaces at Rahayel City is to be allocated to the various automotive vendors. Scheduled for completion in Q1 2020, Rahayel City is ZonesCorp’s first smart economic zone, offering a

dynamic environment that allows automotive businesses to thrive while enhancing the customers’ shopping and service experience and providing a diverse and attractive range of related investment opportunities. Designed in collaboration with automotive industry experts, the city will feature serviced plots and smart buildings that meet the needs of investors and customers alike. Once completed, Rahayel City will also provide the full spectrum of vehiclerelated services, including licensing and maintenance by modern workshops that comply with the best global technical and operational practices, run by personnel who have undergone specialized training programs and hold internationally attested certification. ZonesCorp oversees 50 square kilometers of developed areas in Abu Dhabi City and Al Ain and has ambitious plans to develop new areas in Al Dhafra. The organization’s economic zones include 650 industrial facilities covering a wide range of economic and business sectors and 28 fully serviced labor cities built according to the highest international standards. With an investment portfolio valued at over AED70 billion, ZonesCorp is making a major contribution to the successful growth of Abu Dhabi’s non-oil economy in line with the Abu Dhabi Plan 2030 and the Abu Dhabi Economic Vision 2030. www.cbnme.com


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Storage

New High Bay Container Storage System launched as “BOXBAY” A new international joint venture that aims to change the way that containers are handled in ports has been launched by global trade enabler DP World and industrial engineering specialists, SMS Group. “BOXBAY” represents a new and intelligent High Bay Storage (HBS) system that will be ready in time for the Dubai Expo 2020 with a pilot project scheduled at Jebel Ali Terminal 4. The patented design and rack structure of the system creates unique advantages with containers stored up to eleven stories high, delivering the capacity of a conventional terminal in

a third of the surface area. By being fully automated it has direct access to each container, eliminating unpaid and unproductive reshuffling. It also features significant gains in handling speed, energy efficiency, safety and a major reduction in operating costs. The joint venture brings together decades of experience in container terminal logistics at DP World and AMOVA’s high bay storage handling for metal products that weigh as much as 50 tons each in racks as high as 50 meters. BOXBAY will present its technology and operator business cases for the

first time in public at the Terminal Operator Conference (TOC Europe) in Rotterdam in June. DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, said: “We continue to explore new technologies that push boundaries, disrupt and add value for our operations and customers. We are excited by the prospects for BOXBAY as handling speed and efficiencies are key aspects of the ports and terminals business and the system is a major development for the sector around the world. We look forward to the technology being installed especially in

readiness for Expo 2020.” Dr. Mathias Dobner, CEO of BOXBAY, said: “With our BOXBAY High Bay Storage technology, we are introducing a revolutionary system that will disrupt global port logistics. Following the world’s operators’ tremendous interest in our joint venture, we are now looking forward to showcase our solution to them in person.” Burkhard Dahmen, CEO of SMS group, said: “The BOXBAY system is a direct result of our “New Horizon” strategy, in which SMS transfers proven technology from the metallurgical sector to other industries.” Logistics News ME | May 2019 | 19


Regional News

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Road safety

MAN Truck & Bus Middle East, Dubai Police and RoadSafetyUAE join forces to make UAE roads safer

To ensure safety, it is crucial to emphasize the need for regular training, stricter enforcement of laws and deployment of technologydriven safety solutions. These were some of the highlighted issues at the Safety event for commercial vehicles, which was recently organised by MAN Truck & Bus Middle East, in cooperation with Dubai Police, and RoadSafetyUAE. The event, held at Address Montgomerie, showcased the latest road safety solutions and initiatives for heavy vehicles. It was attended by different 20 | Logistics News ME | May 2019

stakeholders in the truck and bus industry, including fleet operators, members of Dubai Police as well as safety campaign partners such as Michelin, OSRAM and Schmitz Cargobull. Richard Hall, Area Sales Manager, MAN Truck and Bus Middle East, said that the company is taking efforts to help Dubai Police in meeting its road safety goals. “We strive to do this by suggesting policies that could regulate issues like overloading and also by introducing new technological features in our

trucks and buses. One of the biggest problems on UAE roads is the use of old trucks together with the preference of some companies to use fake parts instead of genuine parts ,” Hall said. “MAN Truck & Bus Middle East regularly conducts training programmes and initiatives with Dubai Police and other stakeholders to increase awareness and educate companies about safety features and technologies available. Omar Bahrou, Customer Engineering Support Manager, Michelin, introduced their new digital solution at the

venue. The new system enables companies or heavy vehicle drivers to carry out measured tire checks to assess its capability and durability. The event ended with a truck safety walk-around where all participants had a closer look at the important safety features that can be available on trucks in the UAE market. Captain Salem Mesfer Rashid Alamimi from the Dubai Police, said, “The event focused on improving and spreading knowledge on road safety measures. The more knowledge you have, the better driver you become.” www.cbnme.com


D i g i ta l

Cloud-Based Logistics Five Benefits of Cloud-based Logistics Management for MENA by Hany Aly, Executive Vice President for Enterprise Business, du

The wheels are in motion for the transport and logistics sector thanks to heavy loads of technological innovation. Market research depicts that revenue for the Middle East’s logistics operations is expected to rise significantly over the next decade. And, one key area of disruption shaking up the industry is cloud-based management solutions, which are becoming more and more relevant towards extracting the utmost value out of operations and to delivering savings multipliers beyond previous industry advancements. The impact of the cloud on logistics can sometimes be so overwhelming that it’s hard to discern exactly what it is changing. Nonetheless, it’s clear that the logistics sector is the backbone of international trade, facilitating a considerable proportion of resource toward the supply of materials for many other key sectors. The logistics industry has continuously had to scale to keep up with the world’s growing population. This means an exorbitant quantity of goods movements are taking place every second, minute and hour of any one day. Globally, there are opportunities that the uptake in cloudbased solutions have been too slow. Citing a

22 | Logistics News ME | May 2019

lack of digital culture and training in the sector, a recent report published by PricewaterhouseCoopers (PwC) found that the percentage of companies that rated themselves as ‘advanced’ on digitization was merely 28 per cent. From a MENA standpoint, I believe a growing proportion of transport and logistics companies are beginning to understand the value digital transformation and cloud management solutions can provide. The World Bank’s Logistics Performance Index (LPI), which benchmarks performance in the sector to provide evidence for future policy making and potential reform, ranked the UAE 11th worldwide in its 2018 review. Since 2005, the World Bank’s Aggregate LPI has ranked the UAE (14th) ahead of countries such as Switzerland and the United States. Also positioned in good stead on the index are Oman (46), Saudi Arabia (58), Bahrain (62) and Kuwait (66). In my opinion, there’s clear evidence that from a MENA point of view there is a vivid opportunity for the logistics sector to capitalize on digital adoption. Reforming logistics isn’t easy. But cloud technology has unheralded potential to enable newly-enhanced

platform-based business models and solutions which could dramatically reduce costs and increase efficiency in the long run. Real-time Pricing & Inventory Analytics Cloud management can eliminate administrative activities, creating efficiencies across the board. As a direct result of this, real-time analytics allow automation of manual freight bill payments and audit processes. Other aspects that can be improved with live readilyavailable data can extend to include transportation rates, surcharges and discounts, proposed rate changes. In regards to inventory, cloud-based solutions could also improve automation and efficiency by tracking accessorials, match pay, auto-pay, track claims, while also rendering negotiations with carriers and logistics service providers on rates and equipment requirements. Overall, a reduction in transportation costs by optimizing bid execution and negotiating service provider rates could free up funds for global freight spend thanks to a vibrant step towards digital adoption.

www.cbnme.com


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Hany Fahmy Aly, , Executive Vice President for Enterprise Business, du

the opportunities are massive for improved cloud systems to compliment the sector’s financial prospects and efficiencies. Transit Operations Merged Cloud technology can enable platform solutions, which in turns makes it possible to use new business models, such as ‘virtual freight forwarding’. The establishment of virtual freight corridors by Dubai Customs and the Department of Economic Development in Dubai has proven valuable for faster, easier and cost-effective movement of goods. Dubai Express, Aramex, Gulf Agency Co, WeissRohlig UAE LLC and DB Schenker partook in the pilot phase forerunning the full rollout of the virtual corridor. A state-of-the-art optimization engine that automatically finds the best solutions for your logistics needs, while adhering to your business requirements and trading partner capabilities. The cloud solutions are optimized to create more efficient and higher velocity logistics networks and can be used to centralize, plan and execute domestic and international shipments through consolidating orders, and streamlining location flow and calendars. Live Supply Chain Visibility Having full vision of digitally transformed supply chains not only improves foresight of product movements, it also increases transparency for all stakeholders, from consumers to legislators. It’s becoming more essential for companies to have full visibility and respond immediately to issues that might not be in line with customers’ expectations. With the ability to make succinct changes to improve service value and reduce costs via cloudbased business metrics, logistics companies can grow revenue, enjoy a decrease in supply disruptions and increase their issue resolution speed.

Data Overload Transport and logistics is one of the most data rich sectors in the globe. Adopting cloud management solutions will unveil a new realm of possibilities by optimizing data to engage with customers better and digitally integrate the value-chain to improve future management. With cloud-based solutions driving new

innovation, the transport and logistics industry is preparing for an overhaul of how immense volumes of data are handled and accessed. PwC’s report also found the industry has never had access to more data then at this point in time. If endless amounts of data are present in the everyday operations of logistics companies, then

Rapid Scalability and Growth The transport and logistics sector will benefit from scalable solutions due to the frenetic pace at which trade occurs internationally and because it offers an agile solution to legacy and costly frameworks of the past. This standardized and harmonized processes across an organization is important for carriers who have grown through acquisitions, and currently rely on a patchwork of legacy systems. Overall, cloud management solutions deliver facilities performance that can handle bursts of traffics volume and create efficiencies in cost-effectiveness without the need to drastically alter current setups.

Logistics News ME | May 2019 | 23


Interview

Moving Forward

Kasun Illankoon spoke to Borhene Ben Mena, CEO of Shipa Delivery, about the new online platform that is speeding up their last mile delivery. Tell us about Shipa Delivery Shipa Delivery is a technology platform for last mile delivery, which businesses and consumers can use to get their items moved from A to B quickly, and in a way that gives them total visibility. We developed our technology knowing that, for many people, the only physical touch point with a supplier or carrier is when their orders are delivered into their hands. So we wanted to provide a full digital experience for last mile delivery, but with customer satisfaction at the forefront of our service. Shipa Delivery takes a systematic approach to solving the last-mile problem. It’s precise and—most importantly for our clients and customers—convenient to use. We built the technology from the ground up. We designed it specifically for the Middle East market, and it enables us to customize our platform for everyone, from the consumer through to the largest of merchants, each of whom has unique needs. Ultimately, we’ve fulfilled the vision of a flexible and transparent last-mile delivery solution for our customers to exploit.

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As Shipa Delivery’s CEO, how would you describe your goals and objectives for the platform, and for your enterprise? I can answer that with one word… simplicity! In a few more words though, I’d say we want Shipa Delivery to be the first option that springs to mind for anyone, who needs to move anything, from one location to another. Think of us as the natural last-mile logistics assistant for any company or individual. We want to make people’s lives a little easier, because logistics shouldn’t have to sound, or feel, like something that’s difficult and complex. It’s really very simple. It shouldn’t require several interactions to get something collected and delivered. That’s why our apps, online dashboards, and back-end technology solutions are critical to what we do. For our enterprise clients, our objective is to simplify their fulfillment execution, including warehousing, customer service, real-time tracking, physical delivery, and payment processing. We will absorb the complexities, so they can focus on customer relationships, value creation, and business growth.

Looking to the future, what challenges do you foresee and how do you plan to overcome them? I think our main challenges will relate to flexibility, and to shaping a market in which our USP becomes the primary reason for all our customers to work with us. As you would expect we have a wide array of clients with different requirement and targets when it comes to customer experience and pricing. Priorities can vary across different sets of stakeholders. That’s where the need for flexibility comes in. We plan to meet those challenges by continuing to leverage our technological capabilities and expertise, to provide endpoint flexibility and to some extent, to influence, as well as meet customer expectations. As somebody with a vested interest in last-mile delivery, you must be in-the-know about the latest trends. What are they? Delivery speed is a big one. Delivery performance is evaluated in terms of hours and min-

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utes today, not days and weeks. People want to equate delivery with the immediacy and convenience they experience when they go to a store to make purchases. Transparency is another strengthening trend, even when it exposes some wide array of cases that might happen at the customer door. Building trust and delivering on promises is an essential part of our reinforcing repeated use of the service. How are innovation and technology making changes to last-mile delivery, and how is Shipa Delivery addressing those changes? Innovation and technology are revolutionizing last-mile delivery, and they are doing so by providing following facilities for businesses and consumers such as live delivery updates, real-time tracking, Improved address locations,

digital interaction and self-service, easy-to-use apps and online, dashboards to manage delivery execution, flexible payment options, high levels of customization to meet personal preferences, and machine learning for enhanced planning and execution. At Shipa Delivery, innovation is in our DNA. That’s why we design and build our technology solutions, rather than using white label products. We use technology to innovate, while looking through the eyes of our customers. That’s how we give them a complete digital experience that makes them feel that they have a natural assistant working with them, as opposed to the sense of transacting with a carrier. I would like to say we give customers the experience of delivery by remote control, but of course, the human element is still vital, and our small team is committed to providing personal help when the customer needs it.

We’ve talked about last mile already, but your platform would seem to lend itself to participants in the e-commerce industry. What would you say are the latest and greatest e-commerce trends? E-commerce has, transformed, I would say, the way customers discover, buy, and even return goods. For one thing it is a continuous, 24/7, always-on, process. For another, the customer journey meanders into and out of both online and in-store environments. The lines between digital and in-person interactions are all but disappearing. The omnichannel ecosystem is… omnipresent today. We have reached a point in time when product-returns from customers, for example, can no longer be managed by exception. They have become an integral part of the e-commerce and physical commerce experience.

Borhene Ben Mena, CEO of Shipa Delivery

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Sp o n s o r e d by

Venue

Logistics News ME conducted a round table with industry experts to discuss the various trends that are taking place in the trucking industry. The transportation industry continues to evolve, entering every new year with renewed vigour and better products, including tyre and driver systems. Factors like sustainability, safety, and technology are constantly pushing manufacturers to put their best foot forward— or else they risk being

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left behind. Today’s clients are well aware of the market conditions as well as their own expectations from the products they purchase. It is vital for the manufacturers to meet these expectations. In fact, trucking businesses are famously said to rely on the brand loyalty factor.

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R o u n d ta b l e

Pa rt i c i pa n t s

Hans Wising Regional Sales Director, Scania Middle East

Harish Krishnan Regional Sales Head – GCC, FarEye

Juan Uruburu Head of Sales Middle East, Continental

Marcus Schmidt Area Sales Manager, MAN Truck & Bus Middle East

Martin Roberts Transport Manager, Momentum Logistics

Pervaz Moosakutty General Manager, Premier Logistics

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C o v e r S to ry

Ty r e & T ru c k Saf e t y nia point of view, I think we have always taken pride in providing a safe vehicle for the driver. We believe that the driver from a transport operator’s point of view is very important in terms of safety and also the productivity and efficiency of transport operations. Having a good vehicle will increase the driver’s happiness. As for sustainability we do see it as an important part of our future. At Scania we don’t want to be part of the problem, we want to be a part of the solution. In Scania, we believe in three pillars when it comes to sustainability. First is energy efficiency, second is to do the most efficient logistics as possible and thirdly we believe in alternative fuels.

Juan Uruburu We want to make mobility safer, smarter, and more sustainable. For example, tyres consists of different raw materials and one these elements is natural rubber. Between 10 and 30 percent of a car tire includes natural rubber, while truck tires can include proportionally higher amounts. Today, natural rubber is still obtained almost exclusively from the rubber tree (Hevea brasiliensis) which can only be cultivated in what is referred to as the “rubber belt” around the equator, a fraction of the world’s land surface. Continental in 2016 revealed a new compound as an alternative to natural rubber. It comes from the dandelion root. This particular dandelion can thrive in a large part of the world. The growth cycle for the Russian dandelion is approximately one year. Conversely, the rubber tree has a long-life cycle, where the first harvest could start seven years after planting. Also of note, the dandelions Continental are working with were optimized without the use of genetic engineering.

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Hans Wising I very much believe in sustainability and driver safety and this pushes truck and tyre manufacturers to do better. From Sca-

Marcus Schmidt Driver safety as always been a focus for MAN Trucks & Bus. This is why we have partnered with Dubai Police and RoadSafetyUAE with dedicated safety campaigns. It is important for us to educate and train the drivers and also build awareness. This region has a lot of trucking business and we believe as a truck manufacturer it is our responsibility to introduce the latest technology and develop road safety measures.

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Id e a l t ru c k Pervaz Moosakutty For lot of our clients there are certain standard expectations in what they look for in a truck. The current market shows that a lot of the buyers are price conscious, as people seek to buy lower priced trucks. But at the same time when we do negotiate the type of price with our customers they also do look at the type of vehicle that you are operating. This always depends on the type of materials that you are being asked to transport. There are certain materials that cannot be transported by any trucks. So clients are becoming more knowledgeable about the type of truck you are operating. Clients also look at health and safety, cleanliness, type of vehicle and quality of the vehicle. There have been times where we have not loaded certain materials because of the quality of the truck. Martin Roberts We went to the truck manufacturers and we put together questions for what we were looking for. We were looking at the fuel efficiency, driver safety, maintenance cost, driver training. We also are looking at the residual value of the truck especially after five years’ time. Our vehicle replace program is based on a five year cycle so essentially we will never have a vehicle for over five years old. We operate Scania trucks and with them we have a reasonable buyback program where we can also sell these trucks back to the market if we want to. The point here is that we are given that guarantee with our truck manufacturing partners. That guarantee and the value speaks volume about the confidence that the truck manufacturers have in their own product. We also only buy trucks that have automatic transmission, even a bad driver as well could achieve reasonable fuel efficiency in an automatic transmission truck compared to a manual transmission truck.

to the ideal truck we focus on the total customer experience. If we have on-time deliveries, safety of goods, and the customer is getting the best rates. Essentially these trucks needs to take an innovative approach so that they could take the customers experience to

the next level. Smart trucks too is important as this is essential when it comes to delivery service system. For example, if you have already gone to a customer’s address and if you need to type in that customer’s same address again then it becomes redundant.

Harish Krishnan From FarEye’s perspective we are a digital technological platform that moves goods from one side to the other. When it comes

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Lat e s t t e ch n o lo gy u s e d b y t y r e c o mpa n i e s

Juan Uruburu From the tyre company point of view we recognise that there is no thing closer to the road than a tyre. As a result we try to implement new technology for our tyres and also to make our tyres more sustainable. Continental is now creating a new system which makes the tyre smarter by placing a sensor inside the tyre which provides the necessary information about the tyres performance in real time. The system can also be integrated into the telematics or the fleet management system that are currently in the market. The system is called ‘ContiPressureCheck’ and this system allows the operator to ensure that the right maintenance is done. Tyre performance also directly impacts the fuel efficiency of your truck. So we make our tyres smarter and in the future we want to make these sensors to also measure the weight of the vehicle. Maintenance is the key to the success to any tyre, not just for the tyre but also for the end user. For us in Continental we have one system that works and these are the benefits that you can reap out of it.

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T r a n s i t i o n i n g to E l e ct r i c T r u c k s

Hans Wising The biggest advantages is that it helps the environment and improves sustainability. With electric trucks there are still technical challenges that exist in terms of range, the payload and the cost of the vehicle to make it sustainable not only from an environmental perspective we also need to make it sustainable from business perspective. However, if we are going to be honest about us moving towards sustainability we also need to ask where we get the electricity from. If we start to fire up power plants with oil or gas to make the electricity to be put into the vehicles then there is no point. We need to have sustainable electricity or fossil free electricity, if we have that then we can push towards more sustainability.

dium range electric TGM electric truck up until the electric bus. So technology wise, we are investing a lot of time, money to develop this technology. We have electric vehicles running in Europe and we are in discussions with certain parties in the Middle East who are interested in these electrical trucks. There are

certain factors that need to be taken when it comes to the Middle East like heat, the range and the availability of charging points and we need to ensure at all times that we listen to the customer needs. Customers with big fleets are more likely to invest in electric trucks due to brand imaging and reputation.

Marcus Schmidt We as a truck manufacturer, we believe in electrical vehicles and we have recently launched a complete portfolio of electric commercial vehicles at the IAA starting with the small electrical TGE along with the me-

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F u t u r e I n n ovat i o n s

Harish Krishnan FarEye has emphasises on disruptive technology which is absolutely getting to a stage where we are talking about innovative value added services. This can be about machine learning or IOT or implementing robotic automation and all this technology is coming into our industry. FarEye has been extremely strong on the e-commerce front when you talk about last mile delivery. Pervaz Moosakutty We are very much focused on technology. There is so much focus on getting everything on an app. However, there is a certain extent where at times. Right now there is a discussion within the industry where there they are setting high expectations, expectations that can’t be met at the moment. When it comes to technology it means investing more money and depending on the size of your organisation you would need to make calculable decisions when it comes to investing in this technology. Clients as well are not really speaking about getting this advance technology as they are more worried about getting the cheapest and the most efficient.

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Trucks

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DRIVING CHALLENGE Who will claim the title of the UAE’s best all-round truck driver? This was the question being asked at the UAE final of the Volvo Trucks Driver Challenge 2019, which took place in Dubai during April 15-17th, 2019.

The third annual edition of the competition focused on three key areas; Safety, fuel efficiency, and productivity. The aim of the Volvo Trucks Driver Challenge is to draw attention to the important work done by truck drivers. It is also a way of attracting more trucks drivers in the constantly growing industries of transportation, constructions and logistics. The competition, which this year involved more challenges than ever before, attracted professional drivers from 55 companies. The overall winner of the competition was Mr. Tawhed Ali from Trojan based in Abu Dhabi, UAE Commenting on the event, Mr. Vladimir

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Knezevic, Managing Director at Famco UAE, said; “The Volvo Trucks Driver Challenge 2019 in the UAE brings together all the different challenges that truck drivers face every day. Their skills are often the critical factor in the safety, fuel efficiency and productivity of our customers. Truck drivers also make a major contribution to road safety. The UAE Final gave us the opportunity to see incredibly skilful drivers doing an impressive job of handling their trucks.” Mr. Fredrik Samuelson, Managing Director of Volvo Trucks Middle East, said; “The team at Volvo Trucks together with our valued partner, Famco, are once again very happy to host the 2019 Driver Challenge. Every

year customers and drivers participate in our event and see how we learn from each other. It’s important that we understand how we can get most out from Volvo Trucks; our transport solution simply will not work without the valuable insights we get from professional drivers around productivity and fuel efficiency that truck owners in UAE value so highly today. Speaking about his victory, Mr. Tawhid Ali from Trojan, said “Winning the UAE 2019 Volvo Trucks Driver Challenge is a big achievement for us! The final was tough and we were up against many experienced drivers. We are impressed that Famco stages this motivational event which attracts so many drivers from all over the emirates.”

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Trucks

Entering a new era UD Trucks’ New Quester lands in the Middle East and Africa region By Matthew Treanor

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There is something about Spring that always brings out the best in the truck industry. Last year, a slew of new launches came to the region and this April was UD Trucks’ turn with its New Quester to kick-start the season. Taking to the Bahrain International Circuit, the message from the executives on the sidelines of the event was that Volvo Group’s Japanese powerhouse is ready to hit high speed in the region. Firstly, the truck itself marks the fruition of the company’s emerging market strategy for the heavy duty and logistics segments. In an era where the region - the GCC in particular is investing billions into upgrading its road and trade infrastructure (with an eye on the latest developments in safety and transport technology), the New Quester arrives packed with the kinds of features transportation companies will need to make the most of the opportunities that are being presented to them. “We see some major trends in our industry, and we look to our business partners (UD’s distributors) and customers to make sure we understand what they are,” remarks Jacques Michel, SVP Sales Area International, UD

Trucks before emphasising the macro insight that being part of Volvo Group brings. “As well as being the world’s largest truck manufacturer and distributor in the world, it’s very important that we understand what’s going what’s going on in the economy and what’s going on in the logistics industry.” Michel then echoes UD Trucks founder Kenzo Adachi’s words that the company should make the truck the world needs today. First uttered in the 1930s, they still permeate through the latest member of its truck family. “When we looked at what we needed, we put ourselves, not only in Japan, but also very close to our customers in all the GCC markets - we need to make sure that we have the right truck and services for our customers, so that they can succeed.” The truck builds on the successful debut of the medium-duty Croner in 2017 by focusing on robustness and reliability while carrying features that many may expect from European and western vehicles, including Volvo itself, but don’t always take as a given from eastern manufacturers. Headlining the new enhance-

ments is the now optional ESCOT automated manual transmission (AMT). CBNME learned in Bahrain that the system helps deliver enhanced fuel efficiency savings of up to 10% over the previous model. According to UD, ESCOT’s software programming optimises gear shifting and adjusts according to the engine rpms, vehicle speed as well as its loaded weight. It will even monitor the road gradient with a sensor selecting the optimum gear automatically instead of assuming a first-gear selection. By relieving the driver of some their burden and taking away the need for manual gear shifting; UD estimates that between 1,000 to 1,500 driver gear changes per day are saved. Less changes and more efficient driving means less wear and tear on the truck. But ESCOT isn’t the full story. The truck also has a lighter tare weight (its weight when empty), an optimised driveline and a redesigned clutch which offers a lifespan 2.5 to 3 three times longer than before – as long as it is mated to the ESCOT system. In addition to running more smoothly, fleets that opt for ESCOT also get a more comfortable

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Trucks

truck to sit in. The cabin has been redesigned and now includes an air-suspended system to improve ride comfort. Noise has likewise been reduced with an 18% drop in vibration. Transporters that travel long distances can also now enjoy a high-roof sleeper version of the cabin if they want – a first for UD in the region. Further fuel efficiencies can be gain from fleets that take on the UD Telematics solution. Through it, the New Quester supports effective fleet management and monitoring of driver performance with real-time vehicle tracking and geofencing. Effectively, this means that UD can now offer its own method of improving fleet visibility and optimisation. Individual driver reports can be now be pulled up and weaknesses identified. Fleet managers may use the geofencing to control driver speed in designated areas like high-density urban zones, construction sites or logistics hubs. It is also possible to connect directly to UD Trucks workshops to monitor and detect each vehicle’s condition and service needs before a potential emergency occurs. UD Trucks believes that in tandem with the engineering improvements, its telematics solution can reduce the amount of time the truck is off the road through preventive maintenance analysis and provide continual oversight via driving behaviour and fuel consumption reports. Mourad Hedna, president of UD Trucks MEENA, argues that the truck industry in the region is changing rapidly and customers are increasingly conscious of the total cost of owner-

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ship (TCO). This is leading to an unprecedented interest in using technology to keep costs down. “Fuel used to be relatively cheap in the GCC but it’s becoming more and more expensive,” he explains. “In some countries in Africa, fuel is extremely expensive. So, that’s why fuel consumption for any transport company represents a big portion of the TCO. And we cannot ignore it. With the New Quester we have addressed that in a very smart way.” According to Michel, the smart connectivity features of UD Telematics makes the company’s vehicles relevant for the more advanced logistics companies in the region as well as new

start-ups that are trying to leverage the latest technology to disrupt the market. “We came to what we call Smart Logistics. Smart logistics is embedded into the New Quester with the services that we are bringing. We aim to offer new solutions for our fleet operators, for single owner drivers, to make sure we have the right solution for all our customers in different markets and environments,” he remarks. “We are bringing disruptive technology. The New Quester is a game-changer.” He points to the rising costs for transporters as well as the increased competition in tenders as putting pressure on fleets to be more fuel-efficient

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and keep their trucks running for longer. To do that, the trucks need to be reliable and tough, but they also need more support than ever. “The transportation industry is a very challenging environment for our customers,” he notes. “It’s extremely competitive. There’s an immense need for more heavy-duty and more efficient trucks.” Hedna says that development of the New Quester first began “three to four” years ago and the company used the Middle East as a testing ground to ensure that it could be adapted for local conditions. “Our aim when we were developing the

New Quester was, on one side, to address the challenges that the transportation companies are facing. And the second aspect was to help our customers to boost their profitability and to improve their bottom lines,” he explains. According to Hedna, the company addressed three of its own main challenges when designing the New Quester including: fuel efficiency;

the need for talented and skilled drivers; as well as boosting the productivity of fleets to help them grow. He believes that fleets are ready to switch from a traditional manual to the AMT offered by ESCOT to overcome them. “We made many tests comparing the New Quester to the previous Quester and we experienced on average up to 10% fuel efficiency thanks mainly to ESCOT,” he remarks. “Instead of having the driver think about what the right gear is, we have a smart transmission control with smart software which will select the best gear. There will be less stress on the driver, and he can concentrate on his productivity.” It is this notion of productivity that is behind all of the new features and services launching with the New Quester, he summarises: “As I said, our main aim is to support our customers. To improve uptime and to reduce their operating costs.” Originally drawn to the region when Bahrain first discovered oil over five decades ago, Michel concludes that UD Trucks still feels it has its finger on the pulse when it comes to the types of trucks needed in the market today: “The MENA is one of the most dynamic regions and we see the economy being pulled very much by construction infrastructure development and it’s very important for business success to be a contributor of the economic progress of this region.”

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Trucks

Renault Xperience 2019 Renault Trucks welcomed customers from more than 30 different countries at its annual event on 8th to 12th April in Bahrain

The Renault Trucks Xperience Days 2019, which took place in Bahrain on 8th to 12th April, brought together an international audience of 450 participants from the truck industry in a unique experience which was been split into four key ‘adventures’. The first section involved a truly memorable test drive experience in the latest models in Renault Trucks’ long-haul range, including the T series, as well as the construction ranges - the K and C series. The second and third sections consisted of workshops about Renault Trucks’ transport

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solutions, addressing the topics of safety, fuel efficiency, after sales and financial services. Interactive discussions with Renault Trucks team of experts and guests examined smart transportation solutions - increasing profitability for customers by optimising total cost of ownership - allowing Renault Trucks and customers to share opinions and expertise simultaneously. The fourth and final section saw participants enjoy a fun-filled driving adventure experience. Alongside a professional driver, guests braved a challenging Land Rover Expe-

rience and took on the role of co-pilot on the race circuit in a Renault Clio Sport. Renault’s range of trucks were put through their paces on the world-famous Bahrain International Circuit Formula 1 track. Reflecting on last year’s event in Turkey which hosted 500 customers, Blin concluded: “following last year’s event, we received very positive feedback from our customers; which led us to develop an even more interactive event this year. The 2019 ‘Xperience Days’ will not only give our guests the chance to test our long-haul vehicles, but will also focus on

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our construction and heavy construction vehicles. Our C and K series are a strong and assertive offering in their segments and I look forward to hearing what our expert customers think of them.” Customers who attended the event commented: “it’s my first time attending a Renault Trucks event, we have a large fleet of trucks, and driving the trucks today totally changed my view of this brand; the trucks are robust, great quality, the comfort is beyond our expectations, it is really impressive.” “Renault Trucks is clearly a strong brand in the market; not only their trucks are robust, efficient but also the relationship and customer intimacy we have with Renault Trucks are also the reasons that we believe they are the right partner.” Sales Growth in 2018 Speaking after the event, the President of Renault Trucks, Bruno Blin remarked: “In 2018, we marked our fourth consecutive year of sales growth with a 10 percent year on year increase. Among many factors that led to this success, our close relationship with our customers, and our continuous efforts to always be by their side played a vital role. It’s for this reason that we think it’s essential we come to-

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gether with our customers at events like our ‘Xperience Days’ in Bahrain - we test together, we listen together, we work together.” International sales marked by an upturn in Africa Deliveries of Renault Trucks vehicles have fallen 8.8% internationally, with 4,457 trucks invoiced. This downturn can be explained by the introduction of import quotas in Algeria in 2018. The manufacturer is particularly active in Africa, where sales have grown 25% in 2018. In French speaking Africa, Renault Trucks holds 20% of the premium range market (+1 point). In 2018, the constructor also recorded good performance in Turkey (+2.1 points with 5.8% of MS) and in the Middle East (+1.1 point with 6.4% MS). A record 23% increase of for Renault Trucks used trucks In 2018, Renault Trucks recorded a record increase in sales of used trucks, with 8,500 invoiced vehicles, up 23%. Used trucks service offers are also performing well, notably due to the Selection structure warranty, with a penetration rate of 18%, up 6 points. Used vehicles represent a strategic sector for Renault Trucks. In 2017, the manufacturer opened a “Used Trucks Factory” at its Bourg-en-Bresse plant to recondition its used vehicles. In 2018, 400 used trucks were reconditioned there to meet customer requirements (compared to 230 in 2017). The aim is for vehicles from the Used Trucks Factory to eventually represent 10% of total sales of used vehicles. After the T XRoad, Renault Trucks launched another model from its Used Trucks Factory in 2018, the T PRoad, a tractor converted into a rigid truck. After-sales: spare parts turnover up 5% Renault Trucks after-sales division has reported steady progress of 5% in its spare parts turnover and a healthy increase in the sales of its maintenance contracts. With 32,000 vehicles under contract, the penetration rate of maintenance contracts grew by 5 points in 2018 to reach 23.6% (29% if Clovis Location contracts are included). 60,000 vehicles now benefit from a Renault Trucks maintenance contract or extended warranty. It is of note that Renault Trucks offers transporters ideal protection for operating with complete peace of mind, since the constructor has extended its guarantee warranty on spare parts fitted by an approved Renault Trucks service centre to 2 years, without any mileage restrictions.

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STRONG ON BUSINESS

RENAULT TRUCKS C ROAD Robust, reliable, ready for the long haul, trust the Renault Trucks C Road to deliver in even the toughest terrain. Backed by the quality service support of our professional dealer network, you can count on us to keep your truck operating to the highest standards throughout its working life. www.renault-trucks.com/uae


Ta l k i n g P o i n t

“My partnership with the government of Sharjah led me thinking of ways to improve the overall services being provided and how I can add value to it.� 44 | Logistics News ME | May 2019

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The

Dynamic Force

Kasun Illankoon spoke to Oweis Zahran about his rise to the top and how his upbringing shaped him to person he is today As a dynamic entrepreneur in the automotive industry, Oweis Zahran is the force behind launching innovative solutions in this sector in the Middle East. Born and educated in the USA, Oweis has strong affinity to this region since his father set up businesses in the UAE under MZ Holdings in the early 90’s. MZ Holding has 16 subsidiaries, in three different continents, are primarily in the field of equipment supply, industrial manufacturing, automotive R&D, oil and gas as well as construction. Before he joined University of Maryland as a business undergraduate he was being mentored by his father and unlike other teenagers he was involved in major international business deals. “My father is a gem of a guy and in my heart I believe he is a super human. Unfortunately, my father and I have a very formal relationship which at times bothers me, but it

allowed me to mature quickly and take charge and helped me develop as a leader. The greatest lesson my father taught me was the art of working globally doing business with different cultures. From a very young age I travelled with him to over 65 countries in a short time witnessing him negotiating and closing deals from people all over the world. This hands-on experience is not something Harvard Business School could teach me,” said Oweis Zahran. This hand on experience prepared him for a leadership role, which helped in the evolution and expansion of MZ Holdings’ B2C business. From setting up the largest auto remanufacturing unit in the UAE and expanding it to seven countries to developing exclusive auto solutions with international celebrity to launching a joint venture with Government of Sharjah, Oweis at the age of 28 manages three of its companies that include OWS

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Ta l k i n g p o i n t

Auto, Tatra Middle Eat and Transaxle ME. “The seed of my motivation was sowed in my childhood. I grew up in Brooklyn, New York City and that environment taught me a lot. I watched people around me with great leadership and commanding spirit and how people around me were generous to share their skills with the younger generation. I understand the value and responsibility of being a leader and I take pride in mentoring the friends and family who are still in the ‘hood’,” said Oweis on his what drives him as a business leader. As a serial entrepreneur, Oweis established Rafid Automotive Solutions in 2017 as a joint venture between Sharjah Asset Management and OWS Auto. “My partnership with the government of Sharjah led me thinking of ways to improve the overall services being provided and how I can add value to it. With that in mind and the support of the great leadership of Sharjah government the concept of Rafid Automotavie Solution was created to privatize a lot of services with very rigid KPIs that are aligned with the ruler of Sharjah, His Highness Sheikh Sultan Bin Mohammed Al Qasimi’s vision,” said Oweis. Today Rafid Automotive Solutions operated diverse services that includes an accident reporting app, fleet of electric cars and provides vehicle emission testing to quick service and parts supply and more. In 2017, Oweis Zahran also launched Voltron Motors in the UAE and the US with Hollywood superstar Tyrese Gibson. “Tyrese and I are more than just business partners – we are as close as brothers. The UAE is second home to both of us and therefore it just made sense to launch a brand together. Our ideas matched and since I was already in the automotive business it all came together very seamlessly. When we presented this to the RTA in Dubai they immediately believed in the vision and partnered up with us to provide luxury transportation services to the Emirate. Today Voltron Motors operate a fleet of high end vehicles (Mercedes) that have been modified to Tyrese’s exclusive design patterns and needless to say that they are quite a hit with the passengers!” Voltron Motors’ clientele range from Hollywood celebrities to corporate fleets to high profile people in the Middle East. Oweis philanthropic endeavors match his business ambitions. The company runs a small yet significant operation of providing clean drinking water to families in Nigeria and Ghana.

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“I started with the conglomerate as an assistant to the sales director and was later promoted to my father’s office as a deputy assistant to the Chairman, so technically my dad’s assistant was my boss. It was tough finding my feet at the MZ Holdings because I was constantly looked at as a boy who was trying to steal the spotlight. Thirteen years later, I do take on the role of an acting chairman in father’s absence and deal with familiar faces on the board who saw me growing up. I am strong believer of people and process and as a business leader, on an expansion mode, I think these two are the most important elements when setting up multiple business units. Therefore, my goal is always to empower

people and embed and implement proper governance throughout the organisation. It took me 13 years to get to where I am today and I had the opportunity to start young and also a father who gave me the exposure from an early age. But regardless of how long it takes, my advice is to stick to whatever you are good at and never give up. Success is not found overnight and anyone can become a millionaire doing what they love. There are no short cuts but you can have an edge over others by working hard. Talent and luck don’t mean much to me and I strongly believe in putting in the hours and working hard with a passion in your heart,” Oweis concluded.

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R e p o rt

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Global Logistics Boom With expanded infrastructure and digital capabilities, the GCC is building impressive 21st-century logistics credentials

By Kasun Illankoon

Visitors to Bahrain are often awestruck by the third-century Qalat Al Bahrain fortress on the island’s northern coast. This archaeological treasure, dating back to 2300BC, demonstrates the depth of the island’s history – but also testifies to the region’s importance in the evolution and development of the ancient Silk Road. Arabia was a key stop on ancient trade routes that connected China and India with the rest of West Asia, as well as beyond to East Africa and Europe. GCC nations climbed several places in the recent 2019 Agility Emerging Markets Logistics Index, it was announced this month. Business-friendly conditions and core strengths position several Gulf countries near the top of the index of 50 nations, a direct result of a wider strategy to help diversify the Kingdom’s economy away from hydrocarbons and respond to the demands of our globalised, interconnected world. The UAE and Saudi Arabia both ranked in the top 20, and Bahrain climbed six places to rank 16th. The country’s ranking was enhanced by strong investments in transport and logistics infrastructure, steady progress in streamlining regulation and its strategic development of digital capabilities. E-commerce expansion These factors have enabled the region to take advantage of the global logistics boom fueled

48 | Logistics News ME | May 2019

by the global growth of e-commerce as economies expand and demand patterns change. GDP growth is set to expand across the region – the World Bank expects GCC economies to expand by 2.7 per cent by 2020, up from negative 0.3 per cent in 2017. Meanwhile trading partners such as India and Ethiopia expand by 7.3 per cent and 9.6 per cent respectively with robust consumption predicted, and consequently more demand for goods and services. These levels of growth are expected to raise consumption and modify demand routes in both consumer and industrial markets. Mordor Intelligence values the GCC ecommerce market to have quadrupled to an estimated $20 billion in the five years to 2020 – as warranted by the Gulf ’s high disposable income coupled with strong internet penetration and deep social media reach. In concert, India’s logistics industry is expected to have posted a growth CAGR of 12.9 per cent over the last three years, according to data from research firm Crisil. Capacity investments Taken together, these two data sets alone indicate the potential of the GCC markets as a vital transhipment node for 2.1 billion people in the Middle East, North Africa and South Asia. With reforms slower in many target markets, Gulf nations have built infrastruc-

ture capacity and strengthened their operational capabilities in breakbulk, port facilities, warehousing and transportation. They are now augmenting that competence with stateof-the-art digital solutions. The Khalifa Bin Salman Port and its Bahrain Logistics Zone, where annual tonnage has increased 10.9 per cent over the last decade, already functions as a principal provider of goods to Saudi Arabia and Iran the wider Middle East. Now the nation is improving its systems and procedures to ease the transit of goods and services. Bahrain Customs Affairs is modernising various eCustoms initiatives to improve procedures and increase pre-clearance capabilities. Bahrain is already the most cost-effective logistics hub in the region, with other Gulf countries being 7 to 8 per cent higher in set up cost and 61 to 75 per cent higher in operating cost according to KMPG. When it becomes one of the world’s first countries to roll out a 5G telecoms infrastructure, it will present a compelling case for superiority in logistics infrastructure. Similar moves to varying degrees by the UAE, Saudi Arabia and other countries in the Gulf. Coupled with intra-network expansion such as the $250-billion GCC Railway, these strategic developments will ensure the region remains a global supply chain centre in the years to come – as it was thousands of years ago.

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S u pp l i e r N e w s

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U p dat i n g yo u o n t h e r e g i o n ’ s s u p p l i e r s

Al Jazirah announces delivery of 100 Ford trucks to Saad Saeed Al-Saadi & Sons Contracting Co. Al-Jazirah Vehicles Agencies Company, the dealer of Ford Trucks in Saudi Arabia, announced the delivery of 100 units of 2019 model 6×4 Ford trucks to Saad Saeed Al-Saadi & Sons Company, a contracting, road construction and rock cutting company. A ceremony celebrating the delivery of trucks was held at the Arabian Metal Industries headquarters where the dumpers fitted on the trucks are manufactured. Once outfitted with their new dumpers, the trucks will be used in major road construction projects that will add around 1 million kilometers of new roads in various regions of the Kingdom. On this occasion, Mohammed Bin Abdullah AlKareedis, AJVA’s Deputy Chief Executive Officer, said, “We are proud of our partnership with Saad Saeed Al-Saadi & Sons Contracting Company that saw the delivery of 100 Ford trucks that will be used in key projects that will enhance the Kingdom’s infrastructure.” “The 2019 6×4 Ford trucks are equipped with sophisticated solutions to suit various industrial applications that make them perfect for large infrastructure projects. To date, these trucks have been deployed to work in airports, residential complexes, roadworks, cleaning and maintenance and many other projects in cities such as Riyadh, Qatif, Najran, Tabuk and Hail, in cooperation 50 | Logistics News ME | May 2019

with our partners in the private sector,” he added. AJVA aims to bolster the competitive of the Ford brand in the Saudi market by providing advanced solutions aboard its trucks backed by a comprehensive after-sales service program that covers all Saudi regions. The service centers also offer flexible packages for total preventive maintenance, including all electrical, mechanical and electronic systems, as well as other maintenance services to ensure Ford trucks in good working order and retain their market value. For his part, Saad AlSaadi, Chairman of Saad Saeed Al-Saadi & Sons Company, said, “We are proud to be a partner of AJVA as they provide us with

technologically-advanced trucks that can perform a large number of tasks in infrastructure projects. The new trucks will be used in our roadworks projects that will add around 1 million kilometers to Saudi Arabia’s road system covering the regions of Abha, Qassim, Makkah, Al-Jumoum and AlKharamah.” “Over the years, Saad Saeed Al Saadi & Sons Company has executed various infrastructure development projects, including roadworks, rock cutting and demolition-related projects, and look to continue expanding our footprint to encompass all regions of the Kingdom,” he added. Commenting on the partnership, Ford Trucks Vice President Serhan

Turfan said: “Ford Trucks is a brand combining almost 60 years of experience with the capabilities to manufacture products tailored to different customer needs in various markets. The delivery of 100 units of 2019 model 6×4 Ford trucks is our biggest delivery ever in Saudi Arabia and it is a great pleasure for us to see that our vehicles will be at service of Saad Saeed Al-Saadi & Sons Company to support them in the construction projects that will contribute to enhancement of infrastructure and development of the Kingdom. I would like to extend my thanks to Saad Saeed Al-Saadi & Sons Company for choosing us and to AJVA, our long-term and trusted dealer, in their effort to realize this delivery.” www.cbnme.com


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Momentum Logistics celebrates 10th anniversary

Momentum Logistics, a subsidiary of Gulftainer, the world’s largest privately-owned independent port operator based in the UAE, marked 10 years of operations as a leading third-party logistics (3PL) services provider based in the UAE with a presence across global markets. Speaking on the milestone, Stuart Mainland, General Manager of Momentum Logistics, said: “We consistently look for new ways to enhance our operational efficiency in anticipation of new opportunities for growth around the world. As we mark our 10th anniversary, it is encouraging to note that we continue to build credibility both at home and abroad.” He added: “Our goal is to capitalise on the upsurge in consumer spending, global economic growth and technological advancements that will see us double our revenue over the next five years.” 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, including in the UAE,

Saudi Arabia, the US, Iraq, Turkey and Pakistan. With operational headquarters located at the Sharjah Inland Container Depot (SICD), Momentum also operates in Port Canaveral in the US state of Florida as part of Gulftainer’s global portfolio. The company has continued to invest heavily in organic growth as well as global expansion. In the past year, it introduced new Scania tractor units and the latest European-standard curtain-sided trailers in a bid to enhance its transport fleet. The new equipment enables Momentum Logistics to maintain the high quality of its services that are witnessing increasing demand across its multinational client base. The company is currently working on developing the Saja’a Industrial Investment Park (SIIP), Gulftainer’s first leasehold initiative, through a multimillion-dirham investment in building a highway that will connect the facility in Saja’a with the rest of the UAE’s road network. Since its soft launch, SIIP has attracted considerable interest, with warehouses expected to be fully occupied by Momentum and other customers.

Middle East’s auto aftermarket underlined by strong international presence at Automechanika Dubai 2019

The Middle East’s potential as a key growth region for the automotive aftermarket will be underlined by a healthy international presence at the industry’s largest regional trade fair in Dubai, with global players eager to tap into a market that was valued at US$15 billion in 2018. Automechanika Dubai 2019 is set to welcome more than 1,800 exhibitors from 60-plus countries when doors open for the 17th time in June at the Dubai International Convention and Exhibition Centre, with participating companies expressing optimism about future business growth. Connected cars, ride hailing services, and an increasing consumer base are key trends driving the market according to global research company Aranca, while in the Gulf region, the Dubai Expo 2020, and the decision to allow women to drive in Saudi are other key discussion points keeping industry players hopeful. Automechanika Dubai 2019 comprises the six product sections of Parts & Components; Electronics & Systems; Accessories & Customizing; Repair & Maintenance; Car Wash, Care & Reconditioning; and Tyres & Batteries. The 2019 edition will also feature four new sub-sections of Agricultural Parts & Equipment; Body & Paint; Motorcycle Parts & Components; and Oils & Lubricants. Automechanika Dubai 2019 returns with its popular Truck Competence initiative, where more than 1,500 exhibitors will showcase their products dedicated to the entire value chain in the truck sector, from truck parts and accessories, to workshop equipment, body repairs and care. Also back is the Innovation Zone – a dedicated feature at the centre of the exhibition floor providing fresh insights into new technologies shaping the future of the global automotive aftermarket. It will also feature the Automechanika Academy – a series of seminars, presentations, and workshops about key issues and regulations affecting the automotive aftermarket, and IMI CPD workshop certifications. Logistics News ME | May 2019 | 51


Unsung Heroes

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Priya Thomas

We talked to Priya Thomas, Marketing & Communications Executive,, about her role and how she and the team are helping to contribute to Scania’s success Goals and Objectives Having joined Scania Middle East around 6 months ago, it has been an extremely incredible journey so far. I am responsible for all Marketing & Communication activities for Scania in the region and also supporting our partners with marketing activities in each of their markets. I joined the Scania Middle East team at a very crucial time, right before the launch of the much awaited New Truck Generation. We are very pleased with the high interests and customer interactions at all of our events in Abu Dhabi, Dubai, Oman and Saudi Arabia. In addition, to the launch of the New Truck Generation, our mission is to be able to develop our presence as leaders of sustainable transport solutions. Positioning Scania Scania has a 128 year long history and is one of the global market leaders in the heavy truck industry. Through our partners, we have been present in the GCC for almost 50 years now. Therefore we have accumulated a lot of knowledge and experience of understanding our customer’s needs. Working as part of the Sales & Marketing team, I support all areas of business – Trucks, Buses & Coaches, Engines and After-sales which all have their unique characteristics. However, sharing knowledge and experience and working openly with each other is part of Scania’s culture which helps us to succeed in every area of business Attributes Some of my strongest attributes are that I am extremely passionate and hardworking, very approachable and result-oriented. This is very important when working cross-functional within the organization. Having worked in Marketing in the Automotive Industry for around 3 years (prior to joining Scania), I have been able to bring the experience and the knowledge that is required. However, working now in a B2B segment has allowed me to explore and learn about the different aspects of marketing in this particular segment.

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Importance of Teamwork Teamwork is essential in order to achieve the overall goals and vision for the organization. Even more for me since I support

all areas of the business. It’s the ideas, hard work and efforts of each and every team member that has made Scania one of the Top brands in the industry.

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10 – 12 June 2019 www.automechanikaDubai.com

Network. Source. Trade. Succeed. Now in its 17th edition, Automechanika Dubai – MEA’s largest international automotive aftermarket trade show – is geared towards business success. Meet, source and trade with the world’s leading aftermarket brands and suppliers, check live product demos and new innovations and gain insights from the industry’s key decision makers, all under one roof.

1,801

Exhibitors from

61

Countries

23

Country Pavilions

31,971

Trade Buyers

* 2018 show figures

Register your visit today at www.automechanikaDubai.com/BNC


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The key exhibitions, conferences, and seminars coming up this month

Annual East Africa Transport & infrastructure

May

13-14

May

21-23

Nairobi, Kenya This 2-day conference gives the participants a platform for exchanging views, ideas and business opportunities among the global as well as domestic market. Agenda 2063 and plans for The Third Kenya Vision 2030 Medium Term Plan will be discussed. Also the latest developments related to freight management and passenger services will be highlighted. This conferences provides a platform for technology up gradation and joint ventures with equipment manufacturers. European Business Aviation Convention & Exhibition Geneva, Switzerland The European Business Aviation Convention & Exhibition (EBACE) is a premier event and the annual meeting place for the European business aviation community. The exhibition brings together business leaders, government officials, manufacturers, flight department personnel, avionics firms, fractional providers, charter/lease companies and all manner of people involved in nearly every aspect of business aviation.

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June

10-12

June

10-12

Automechanika Dubai Dubai, UAE Automechanika Dubai is the leading international trade show for the automotive aftermarket and service industry targeting trade visitors from the wider Middle East and African regions. The product like Parts & Components, Electronics & Systems, Repair & Maintenance, Tyres & Batteries, Car Wash, Care and Customizing and Accessories & Customizing.

Hardware+Tools Middle East Dubai, U.A.E Representing a broad spectrum of segments within this ever-growing industry, the show presented manufacturers and suppliers with a platform to network, evaluate market trends and source products and solutions across cost ranges from a variety of international brands.

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Grow with our Business Complete plans. • Unlimited high-speed internet • Free business devices • Fixed Voice line with unlimited national calls For more information, call 800 188 or visit du.ae/businesscomplete


Profile for BNC Publishing

Logistics News ME - May 2019  

Logistics News ME - May 2019  

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