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October 2019

Embracing E-commerce Nour Suliman, CEO of DHL Express MENA, on how embracing E-Commerce has made DHL a star player both globally and in this region


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Contents

Contents

O cto b e r 2 019

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

October 2019

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

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Start 08 | News

Features 20 | COVER Story 26 | URBAN MOBILITY 34 | Ports 36 | INTERVIEW 38 | TALKING POINT 40 | SUSTAINABLE 44 | MARKET OVERVIEW

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E d i to r ’ s L e t t e r

O cto b e r 2 019

A note from the editor K a s u n I l l a n koo n

CEO Wissam Younane wissam@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Group Publishing Director Joaquim D›Costa jo@bncpublishing.net +971 50 440 2706

A quick look at the regional aircraft markets which will need $600 billion in investments to meet the demand for 150-seat 10,550 aircrafts by 2038 due to rise in air travellers, according to a report by aerospace company Embraer. Market growth will drive 65 per cent of this demand for the aircrafts, while the remaining 35 per cent will replace ageing aircrafts, the report adds. Asia Pacific will drive the highest market share for 150-seat aircraft capacity by 28 per cent or 3,000 deliveries with North America following closely behind with 2,780 (27%), Europe with 2,240 (21%), Latin America with 1,140 (11%), CIS with 580 (6%), Africa with 450 (4%) and the Middle East with 360 (3%), according to Embraer, the leading Brazilian manufacturer of commercial aircraft with up to 150 seats. Contributing to the greater demand for airline services is the successful tourism promotion of

emerging economies. To cater to the demand, global aviation industry has been improving its connectivity for emerging destinations and ensuring increase in flight frequencies. Airlines have also adopted low-cost carriers, a segment that contributed to the consistent decrease in air fares by 0.9% annually, greatly impacting market competition. Africa has taken steps through its Single African Air Transport Market (SAATM) to address its aviation infrastructure gap and is expected to enjoy an increase in passenger traffic by 4.6% through 2037. These developments have prompted aviation industries from around the world to construct, develop and modernize their air transport infrastructure to boost their capacity and to accommodate the required growing fleet. Kasun Illankoon Editor, Logistics News Middle East

Senior Sales Manager Vishvanath Shetty vish@bncpublishing.net +971 52 119 3077

Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818

Editor Kasun Illankoon kasun@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net Marketing Executive Vince Celestial vince@bncpublishing.net

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On the web Keep up to date with all the latest news, features and much more on our website.

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All rights reserved © 2015. Opinions expressed are solely those of the contributors. Logistics News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Logistics News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Logistics News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by UPP

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Re g i o n a l Ne w s

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 Cargo

Emirates SkyCargo works with Dubai start-up for efficient and transparent sourcing of seafood Early on Friday, 6 September, a batch of salmon arrived in Dubai in the cargo hold of Emirates flight EK 28 from Glasgow. The shipment of Scottish salmon, destined for restaurants and consumers in the UAE, was the first that was being transported for Seafood Souq, a Dubai based start-up working on transparent and efficient sourcing of seafood, by Emirates SkyCargo, the freight division of Emirates. The shipment marked the culmination of a round of discussions and the start of a fruitful partnership between the two companies. Seafood Souq has created an online B2B marketplace application that helps seafood buyers procure products from all over the world. In addition to streamlining the traditional model of sourcing seafood, the application also allows for improved quality and traceability of the produce being transported. Better information sharing facilitated by the platform means that there are likely to be fewer instances of mis-labelling and expiry of seafood. Seafood Souq have entered into a partnership with Emirates SkyCargo for transporting their seafood shipments rapidly from

source markets to customers. “The core aim of Seafood Souq is to provide access to fresh products in the quickest possible time by connecting customers to suppliers and allowing produce to be dispatched on the day that the order is received. Working with Emirates SkyCargo was the naturally obvious choice for us because of the network and frequency of flights offered by them,” said Sean Dennis, CEO and Co-founder of Seafood Souq. “Not only

8 | Logistics News ME | October 2019

does Emirates SkyCargo have a good frequency of flights into all the key global origin and destination markets for seafood but they also have the cool chain infrastructure and capabilities that allows seafood to retain its freshness during the journey,” he added. “We are excited to be working with Seafood Souq and to be supporting an innovative Dubaibased start-up having the potential to transform the supply chain for the seafood

industry,” remarked Dennis Lister, Emirates VP Cargo Commercial Development. “Our Emirates Fresh product is designed for the rapid and efficient transport of seafood and other perishables. With our modern aircraft and other equipment including dedicated Emirates Fresh Cool Dollies, Emirates White Covers and a state of the art hub in Dubai with extensive cool chain facilities, we are well positioned to support Seafood Souq as they continue to grow.” www.cbnme.com


O cto b e r 2 019 Initiatives

DHL Express introduces recycled ecouniforms as part of CSR in the region DHL Express, the world’s leading international express services provider, has announced that it is turning environmentally damaging waste into sustainable polyester yarn to be used as staff eco-uniforms, as part of its ‘Go Green’ drive to reduce its logistics-related emissions in the region. DHL is working with Nouveau to create high quality uniforms from plastic bottles that are identical to the current uniforms. The Waste2Weave process is to turn bottles into ready to wear clothing, for example, a pair of DHL trousers can be crafted from 23 plastic bottles, 19 bottles to make a shirt, and 9 bottles to make a DHL courier cap. The bottles are crushed and spun through a shower-like nozzle that results in viscose yarn. This yarn is then used to weave fabrics, which end up as ready to wear clothing. The initiative will start in the UAE and then will be rolled our across the region. More than 2500 couriers across the region will be wearing these uniforms. This step towards sustainability will recycle around 510,000 water bottles per year. General Manager of DHL Express in UAE, Geoff Walsh said “A large

number of plastic water bottles used around the world are dumped into landfills which pose a high risk to the environment. As a leading logistics provider, we feel that there is an opportunity for us to do our due diligence to create a sustainable living environment. We

believe that a small change in DHL’s corporate work wear can have a big impact on the environment and set a good example for employees worldwide.” Vice President Operations of DHL Express in UAE, Mike Barrett added: “This is a meaningful initiative for us as we are doing our part

to recycle plastic waste, and are contributing to reducing environmental pollution in the UAE and around the world. We believe very strongly in this step towards our global going green initiatives and will continue to leverage our network and expertise to build a sustainable society.”

DAE signs new US$300 million 7-year unsecured term loan Dubai Aerospace Enterprise (DAE) Ltd. announced today that it had signed a US$300 million 7-year unsecured term loan with a group of six banks. Abu Dhabi Commercial Bank served as Initial Mandated Lead Arranger, Bookrunner and Underwriter. The loan will be used to repay secured debt and support the future financing needs of the business. Firoz Tarapore, Chief Executive Officer of DAE said: “We are pleased to enter

into this loan led and arranged by Abu Dhabi Commercial Bank. This incremental unsecured loan further underpins our ambition to structure our funding and liquidity predominantly around unsecured debt. This transaction brings the total liquidity we have raised in the last 18 months to US$3.5 billion. This gives us considerable funding certainty to pursue our aggressive growth agenda.” Head of Investment Banking at ADCB,

Ludovic Nobili said: “We are absolutely delighted to singly arrange this long term, unsecured financing for DAE. It has been a privilege and an honour to assist DAE in achieving its strategic financing goals which include increasing the percentage of unsecured debt in the company’s overall debt structure. The level of professionalism and depth of strategic vision at DAE are unparalleled and we look forward to a very long-term partnership.” Logistics News ME | October 2019 | 9


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Transportation

Serco Middle East celebrates decade-old partnership with RTA Dubai

Serco Middle East recently celebrated its decade-old partnership with Dubai’s Roads and Transport Authority (RTA). The collaboration between RTA and Serco began after the latter was tapped 10 years ago to operate and maintain (O&M) the Dubai Metro, which was launched on September 9, 2009. Phil Malem CEO, Serco Middle East, said: “We are delighted and proud to be part of this journey in

partnership with RTA. By combining Serco’s expertise in managing large-scale railways with RTA’s drive and vision, we have been able to deliver a bespoke public transport system that has become an icon for the city of Dubai. I look forward to future collaborations with the Authority to continue delivering outstanding customer experience.” Serco provides full operations, maintenance, and integrated facilities

12 | Logistics News ME | October 2019

management for the automated Dubai Metro rail network, which consists of 75 km of track, 47 stations, 79 trains and the operations control centres (Rashidiya, Qusais and Jebal Ali). Serco delivers first-class customer service to its growing patronage that now exceeds 650,000 passengers per day and have maintained 99.9 percent train service availability and 99.7 percent train punctuality for the Dubai Metro. Alex Rentier, Managing

Director of Serco Transport in the UAE, said: “RTA partnered with Serco after an intense, detailed, and highly competitive process and we are very proud to be part of this milestone. As we celebrate our decade-old ties built on worldclass services, we continue to be RTA’s partner of choice. This is so because our ethos is built on trust, innovation, and the quality of service we provide. We look forward to more fruitful collaboration with the Authority.” www.cbnme.com


O cto b e r 2 019

Hala e-hailing service accelerates past 1 million trips in Dubai

Hala, the joint venture between Roads & Transport Authority (RTA) and Careem that offers an innovative way to get around Dubai by enabling customers to book a Dubai Taxi on the Careem app-has achieved its landmark one millionth trip booked through the ehailing service on 9 September. Highlighting the significance of the remarkable achievement, Clemence Dutertre, CEO of Hala, said: “This is indeed a key moment for us. It reflects the incredibly positive reception our service has had in Dubai, being embraced by riders as a booking method they have been waiting for, and have now made Hala their first choice.” She added: “Naturally, we are overwhelmed by the response, and would like to thank our customers and captains for their continuous support and trust. This is just the beginning of our journey” Hala has been ramping up its fleet to reach over 5,500 Dubai taxis available on the Careem app by midSeptember, and trained over 10,000 captains to manage e-hailing requests from customers. Hala enables residents and visitors of Dubai to locate the closest Dubai Taxi on demand, see a fare estimate and time of arrival before booking their ride. They can also connect their credit card for easy, hassle free payment via the Careem app. It provides all customers who book a Dubai Taxi on the Careem app the full Careem app benefits, including Careem loyalty program Rewards.

Appointments

Bahrain EDB appoints Khalid Humaidan as CEO

The Bahrain Economic Development Board (EDB) – the investment promotion agency tasked with attracting investment into the Kingdom – today announced the joining of its board member, Khalid Humaidan as Chief Executive, effective immediately. Prior to joining the EDB, Mr Humaidan, a Bahraini national, was the Head of Global Markets MEA at BNP Paribas. He has over 20 years of experience working in capital markets and currently serves on the board of Mumtalakat, and until his appointment as CE, sat on the EDB’s Board from 2014. Mr. Humaidan said: “At a time of rapid shifts in the

global economy, the key to our prosperity lies in the rapid adoption of new trends and innovation – as well as strong partnerships between the public and private sector. The work of the Bahrain Economic Development Board has brought a range of world-class companies to the Kingdom through a forward-thinking approach that combines agility, a strong entrepreneurial ecosystem, and co-ordinated action. Having spent more than 20 years in Finance, I look forward to contribute to the next phase of the Kingdom’s economic growth and forging even stronger ties with our partners.”

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O cto b e r 2 019

E-commerce

Dubai South to showcase fully dedicated e-commerce zone EZDubai at Ecommerce

In line with its commitment to play a key role in the move to advance Dubai’s leadership in global trade and e-commerce, Dubai South is set to highlight the latest developments in the Middle East’s rapidly growing e-commerce sector at the upcoming e-commerce Expo in Olympia, London. During their presence at the show, Dubai South will be promoting the Logistics District and its recently launched fully dedicated e-commerce free zone, EZDubai, including its capabilities and key features. Ecommerce Expo is set to take place from September 25 to 26, 2019 and is considered the UK’s largest e-commerce event attracting more than 12,000 delegates and over 200

companies from across the country. Recent market reports have shown rapid growth of e-commerce in the Middle East and North Africa valued to reach up to USD 24 billion by 2022, the region’s e-commerce trade have soared by 1500% for the last 10 years, with UAE leading the industry by maintaining 50% in terms of e-commerce sales. EZDubai, the 920,000 square-meter purpose-built e-commerce zone, is an AED 2.1 billion project located within Dubai South’s Logistics District is designed to provide a range of logistics facilities and business solutions. Mohsen Ahmad, CEO, Dubai South’s Logistics District, said: “The UAE and especially Dubai is rapidly

14 | Logistics News ME | October 2019

gaining its reputation as an ideal e-commerce hub strategically positioned to serve the global e-commerce market following the steady growth of online shopping in the UAE and the Middle East. Our participation at the upcoming Ecommerce Expo is in line with our goals to promote the emirate as the preferred destination for doing business, supported by world-class logistics and supply chain facilities and services solely dedicated to the needs of the rapidly growing e-commerce in the region.” He added: “We are confident that our presence at the show will receive positive response, especially for our latest projects within the Logistics District, like

EZDubai, which is being developed to complement Dubai’s world-class transport infrastructure, primarily the airport-seaport corridor, allowing cargo to be moved from port to airport within 20 minutes. We envisioned it to be a gateway and an integrated platform providing global businesses with access to free zone assets, network and connectivity to trusted providers or services to further enhance and expand the business while also keeping true to our focus of providing smart facilities and cutting-edge services to drive in enhanced improve efficiency and an improved ease-of-doing business process that is in line with Dubai’s set goals and objectives.” www.cbnme.com


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

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Re g i o n a l Ne w s

Quote Infor Nexus continues to enable significant performance improvement through digital transformation in the most complex supply chain operations at leading enterprises around the world.”

Shipping

Otis selected to provide peoplemoving products at Kuwait Airport’s new terminal

Jonathan Wood, General Manager, MEA, Infor

Top 5 online

1

DHL Express introduces recycled ecouniforms as part of CSR in the region

2

Dubai South to showcase fully dedicated e-commerce zone EZDubai at Ecommerce Expo

3

Bahrain EDB appoints Khalid Humaidan as CEO

4

Serco Middle East celebrates decadeold partnership with RTA Dubai

5

EMAC signs MoU with Abu Dhabi Global Market Arbitration Centre

16 | Logistics News ME | October 2019

Otis Kuwait has been selected for the new Passenger Terminal 2 at Kuwait Airport by LİMAK İnşaat Kuwait SPC which is contracted by the Ministry of Public Works, Kuwait. Otis, the world’s largest manufacturer and maintainer of people-moving products, including elevators, escalators and moving walkways, is a unit of United Technologies Corp. Otis will supply 190 elevators for the project. This includes 171 Gen2™ units with capacities up to 5000kg and 19 heavy-duty elevators with capacities up to 11 tons. The units feature the latest in Otis technologies like the ReGen® Drive, Gen2™ flatcoated steel belts and Pulse™

monitoring systems. The scope awarded to Otis comprises of all elevators within the new airport terminal, expected to be complete in 2022. Otis operates in Kuwait as Otis Elevator Company Kuwait (KCSC), a joint venture company. “The new passenger terminal in Kuwait will be one of the region’s biggest infrastructure projects, and we’re extremely proud to be part of this landmark project,” said Maged Nagib, vice president and managing director, Otis Middle East. “Otis is committed to Kuwait’s fast growth and high standards of efficiency and traveler comfort.” www.cbnme.com


O cto b e r 2 019 Vehicles

Scania introduces ‘Scania AXL’, a fully autonomous concept truck, without a cab In what is another milestone in the development of heavy self-driving vehicles, a group of Scania experts in different fields have teamed up and developed a concept truck, which, even without the cab, has the company’s modular system at the heart of the design. As different industries look to streamline transport assignments and make them more sustainable, self-driving vehicles are increasingly being considered. Mines and large closed construction sites are examples of environments that are favourable for selfdriving pilots since they are well-controlled locations. “With the Scania AXL concept truck, we are taking a significant step towards the smart transport systems of the future, where self-driving vehicles will play a natural part,” says Scania’s President and CEO Henrik Henriksson. “We continue to build and pilot concepts to demonstrate what we can do with the technology that is available today.” For autonomous vehicles, software is in many ways

more important than hardware. Scania AXL is steered and monitored by an intelligent control environment. In mines, for example, the autonomous operations are facilitated by a logistics system that tells the vehicle how it should perform. “We already have selfdriving trucks in customer operations. However so far, they have been with room for a safety driver who can intervene if necessary. Scania

AXL does not have a cab and that changes the game significantly,” says Claes Erixon, Head of Research and Development at Scania. “The development in self-driving vehicles has made great strides in the past years. We still don’t have all the answers, but through concept vehicles like Scania AXL we break new ground and continue to learn at great speed.” The combustion engine that powers the concept

vehicle is an example of how traditional and new technology is mixed. It is advantageously powered by renewable biofuel. The robust and powerful features and design behind Scania AXL match the tougher environments in mines and large construction sites. A new intelligent front module replaces the traditional cab, but even without a cab the concept is easily recognisable as a Scania.

Scania Middle East welcomes Erik Bergvall as the new Managing Director for the Region. Erik has moved from his previous position as Regional Director at Scania Germany.

Transguard Group has announced the launch of its Graduate Programme for UAE Nationals. The programme gives successful candidates an opportunity to develop business expertise, managerial skills and knowledge

Quick news

Abu Dhabi Global Market Arbitration Centre and Emirates Maritime Arbitration Centre have signed a MoU to advance arbitration and mediation services across the whole UAE maritime industry.

The Treasury has launched a £400 million fund, CIIF, to bolster Britain’s electric vehicle charging infrastructure, with the first £70 million provided by Masdar – allocated for 3000 charge points.

Logistics News ME | October 2019 | 17


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O cto b e r 2 019

Technology

Technological disruption is a priority for nearly 70% of UAE CEOs in 2019, according to KPMG’s CEO Outlook report Almost 70% of UAE CEOs are actively disrupting their sectors in 2019 by making significant technological advances, from AI to cognitive computing, to grow their business and stay ahead of competition. This is according to the fifth edition of KPMG’s CEO Outlook report, which shows that disruptive technology, economic territorialism and climate change are some of the biggest challenges global and local businesses may be facing today. Despite 94% of both UAE and global CEOs expressing confidence in their own business’ growth prospects, fewer (63%) feel the same way about the global economy. Ageold businesses appear to have come under increasing threat due to digital disruption, and CEOs are under pressure to rethink their organization’s traditional approach to drive new digital revenue streams. Sixty three percent of UAE CEOs believe that agility is fundamental for businesses to succeed against a challenging economic backdrop. Eight out of ten UAE CEOs are actively transforming their leadership teams to build resilience and three-quarters of organizations are piloting artificial intelligence (AI) and automating processes. In the wake of increased technological disruption and adoption, over half (57%) of CEOs recognize that a strong cyber strategy is critical to building trust with key stakeholders.

Nader Haffar, Chairman & CEO KPMG Lower Gulf, said: “This year’s KPMG CEO Outlook report shows that UAE CEOs are championing a digital reinvention, while navigating other big issues like economic territorialism and climate change. To weather the challenges that lie ahead, they may have to fundamentally transform their operating models and build an agile, customer-focused and connected enterprise with a strong workforce at the helm.” Many global and local organizations have recognized that climate change presents

18 | Logistics News ME | October 2019

one of the biggest challenges today – and CEOs are turning their attention to energy transition to move the world away from a reliance on fossil fuels. In fact, half of UAE CEOs say their organization’s growth will depend on their ability to navigate the shift to a low-carbon, clean-technology economy. UAE CEOs also recognize they should take advantage of the abundance of opportunities in emerging markets like the Indian subcontinent, China and south-east Asia, given their growing populations, the expansion of their middle

classes, and steadily increasing consumption. Overall, 66% of UAE CEOs said their first priority for geographical expansion over the next three years is emerging markets. “The social, economic and technological headwinds we have seen emerge in recent years are still relevant,” added Haffar. “UAE CEOs today must become disruptors of their own business, and challenge entrenched practices. If they can create an environment where new ideas can be tested and change is encouraged, their organizations stand to benefit tremendously.” www.cbnme.com


C o ve r S to ry

20 | Logistics News ME | August 2019

www.cbnme.com


O cto b e r 2 019

Embracing eCommerce

Nour Suliman, CEO of DHL Express MENA, on how embracing E-Commerce has made DHL a star player both globally and in this region

2018 was an extremely good year for the company according to Nour Suliman, CEO of DHL Express MENA. “Two main factors contributed to the success of our business; the growth in our Time Definite International (TDI) shipments and most importantly, our increased focus on eCommerce which has been a star player for DHL both globally and in this region”. DHL Express MENA generated 829.8 Million Euros in revenues in 2018, an impressive 7% jump from 2017 placing it as one of the best regions for DHL’s business. According to Suliman, this was mainly due to eCommerce sweeping over the Middle East market. “We have all seen the impact of eCommerce on traditional retail; it has transformed the way consumers select products and engage with brands, creating opportunities for many businesses, large and small, and taking them global overnight.” Online sales channels have powered the growth of some of today’s largest companies and it is estimated that the global eCommerce market will be worth $4 trillion by 2020, pushing eCommerce to become the largest retail channel in the world. Suliman gives us the example of one of the biggest global online luxury retail-

ers - MATCHESFASHION.COM. Thirty years ago, Tom and Ruth Chapman opened Matches, a small multi-brand boutique in the London suburbs. In 2006, after launching its online offering, the company saw its sales boost with orders flooding in from Asia, to the US and Europe. With an increasingly young population, high disposable incomes and changing buyer habits, the MENA is now taking center stage as the world’s fastest growing eCommerce playground. Traditional brick & mortar retail is being challenged by online shopping and this is forcing many established companies to reassess the way they do business. Even DHL has seen its business change from primarily a B2B player. “B2C has grown from around 10% of our global volumes in 2013 to more than 20% today, and our eCommerce activity in the MENA has seen an astounding 40% annual growth.” There is no surprise that DHL has had to shift its focus, and look more closely on how to strengthen its eCommerce footing. “We have spent quite a bit to enhance our air network and expand our facilities to accommodate growth and the space needed for more shipment inflow. We upgraded our MENA airplanes to a uniform fleet of Boeing 767’s and

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added wide body operations into high-volume markets. We also increased rotations into key markets such as KSA and UAE which make up a major part of our business”. During this time DHL has doubled its DHL Aviation touch points and boosted its domestic and international flights to over 160 per week. “The demands of eCommerce have forced us to shift mind-sets and re-align our processes in order to accommodate rising customer and retailer demands, as well as the ability and flexibility in our air and road network to adapt to volume spikes and swings”, says Suliman. At the start of this year, DHL opened a new logistics facility in Dhahran, home to DHL’s Eastern Province Regional Office. “This is DHL’s fourth infrastructure investment in KSA in the past four years”, said Suliman. “We have invested heavily in KSA because it is a significant market for our business and because our clients have asked us to”. Around the same time DHL also launched a new state-of-the-art logistics facility and country office in Amman. Commenting on the company’s 2020 strategy and beyond, Suliman said that DHL will push ahead with its regional growth plans to support the shifting economic landscape and emerging trends. “eCommerce will definitely be a key driver for us and we are developing new competitive B2C products and services to grow our market share and leverage on the fast-paced trends for cross-border shipments. We see an opportunity to increase activity between Asia, the Middle East and Africa and we will continue to add capacity and expand our reach across key markets to enhance transit times, and deliver greater capability. We will also continue to look at how best to leverage on our facility investments in Saudi Arabia, Egypt and the UAE, be it by adding more flight frequencies or by re-designing our routings to support the eCommerce and broader logistical demands of our MENA clients.” According to Suliman, there is more in store for DHL in the near future with new facility upgrades planned in Oman, Dammam, Abu Dhabi, DWC, and Qatar, as well as upgrades to its air/road networks, increased flights and investments in new technologies. Suliman explains that DHL is committed to helping eCommerce players stay competitive. “Our logistics expertise is crucial in supporting eCommerce; innovation and customer service is where we excel. We add value by helping online merchants reach even more of the B2C market with speed,

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flexibility and at reduced costs.” eCommerce is being shaped by technology, especially in last mile delivery. Most of the challenges come on this last leg, and according to Suliman, DHL is always trying out new solutions to deliver faster, conveniently and at a lower cost. “In Europe and the US we have seen autonomous vehicles, drones, and delivery bots amongst other last mile delivery methods, while in the UAE we launched the ‘cubi-bike’, ves-

pas and our On Demand Delivery service.” There is also much innovation in the visibility and traceability of shipments, and Suliman explains that mobile technology and the expectation of real time information in the palm of your hand 24/7 will continue to increase. One of the booming eCommerce businesses in the region is retail, more specifically ‘fashion’, and DHL already has many established designers in its portfolio and hands-on expertise in steering them through their success

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journeys. “We are now focused on how to help boost the new designers, the emerging talent and start-ups, who are keen to tap into crossborder markets, and who we consider a key economic stimulant.” DHL has tailored all-inclusive solutions for small designers that extend to efficient transportation services, customs support and access to a strong customer base, enabling them to compete internationally. “We have many success stories close to

home – look at UAE’s The Modist, which was launched in 2017 and today ships to over 120 countries. That is a remarkable achievement which was made possible by fusing a great idea with business talent and expert logistics support”. Discussing how DHL plans to tackle risks arising from online retail platforms investing in their own in-house logistics capabilities, including transport and warehousing, Suliman explains that the company has taken a

proactive approach and is investing in dedicated warehousing facilities that meet the needs of e-tailers, citing its new dedicated eCommerce warehouse in Dubai’s EZone. “Warehousing technology is complex and requires substantial investment, as well as sophisticated management systems which not all eCommerce players can afford or are proficient in. We have been in the business of logistics for over 50 years and are well equipped to manage such facilities which en-

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able eCommerce players to maintain a distribution center in the UAE and connect their products to the GCC market and globally.” DHL has developed an ecosystem to provide effective and efficient services to eCommerce companies by adopting the latest technologies such as AI, blockchain and digitization. Last year DHL rolled out its global campaign - ‘Where Everything Clicks’ - a brilliant eCommerce resource to help web merchants increase sales through advanced market intelligence, giving them necessary data to help them better reach their customer base internationally. According to a study by DHL and the Cranfield School of Management, eCommerce has begun to spark cross-border trade in the B2B sector. Suliman states that more and more of DHL’s B2B customers are starting to increase their online presence to reach a wider market. “We are seeing some of our heavyweight business staples in manufacturing and automotive for example, bypass the middleman and engage directly with suppliers and customers via digital platforms.” B2B companies are trying to mimic the B2C model to reap the benefits by adapting their supply chains to provide a more flexible, agile, scalable, quicker and mobile customer experience. “And this is where things can get a bit challenging”, says Suliman. “Customers expect a seamless experience from these industries which is not always feasible seeing their distinct differences in scale and modus operandi. Hence the need for effective logistics seeing how a significant aspect of online commerce is to be able to efficiently manage the physical movement of goods from their origin to the customer at a promised time”. B2B companies have to provide multiple transport and delivery options to increase their competitiveness. “We help them navigate this new terrain by providing direct access to overseas markets through our global network; we help them build operational flexibility without the need for extensive warehousing and distribution networks. We help them streamline their logistics processes and minimize financial risks”. These are just a few of the premium service offerings DHL provides. That and the indirect benefits of brand credibility and trust - a company like DHL offers a stamp of assurance that goods will be delivered on time every time. As Suliman states, DHL is seizing the eCommerce opportunities which are taking the industry by storm, and has set its sights firmly on becoming the global logistics partner of choice for this business segment.

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F e at u r e

Urban Mobility The future of urban mobility is growing stronger thanks to the new innovative technologies and software’s being introduced into the transportation market. Logistics News ME caught up with some of the industry leaders to find out how modern technology and software is aiding and assisting the advancement of urban transport mobility. By Kasun Illankoon

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People hurry from corner to corner; cars and trucks roll along the roads, while bicycles and scooters jostle for space. Transport mobility has never been easier with more and more individuals being able to access parts of the city without any obstacles. But sometimes that movement falters, and with it the dynamism that is the hallmark of great cities. Unhealthy smog levels and traffic jams, with their chorus of horns and shouts, are routine irritations of urban lives, and things could get much worse. The world’s cities are facing an urgent set of challenges when it comes to ensuring that fundamental rite of urban living: getting around. According to a report released by McKinsey & Co, by 2030, an estimated 60 percent of the world’s population will live in cities, up from about 50 percent today. Over the same period,

more than two billion people are likely to enter the middle class, with the majority of them living in cities in emerging markets, particularly China. The number of megacities with more than ten million people will continue to grow. A wide range of mobility services offers new kinds of transportation alternatives, and money is pouring into the sector. These new mobility services and product concepts could profoundly change both public and private transit. Of course, not all of these start-ups will survive, but the technology, business models, and user experiences will likely improve and software companies are also getting involved in improving transport. In this feature we talk to some the leading experts when it comes to innovative and modern transportation and how technology is playing key role in its rapid growth.

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Peter Mohring - Managing Director Transport, Serco Middle East, gives us his thoughts on the Advancement of Urban Mobility: Entering the fourth industrial revolution. “Mobility has substantially evolved over hundreds of years as a result of the influence of industrial revolutions. The first industrial revolution was enabled by the invention of steam powered technology and the establishment of the railway industry. The second marked the emergence of the automobile industry with the support of mass production, while the third was backed by digitalization as the world was introduced to computeraiding travelling such as Global Positioning Systems (GPS) in vehicles. Fast-forward to the present day and we are on the verge of entering what could be defined as a fourth industrial revolution; represented by industry and technology convergence – drivers of the previous revolutions in the history of mankind. In fact, the emergence of next-generation technologies such as clean energy vehicles or connected mobility solutions is a question of ‘when’ rather than ‘if ’; with autonomous vehicles, electric powertrain, vehicle sharing, and other advances having already transformed urban mobility. Further emphasizing an imminent fourth industrial revolution, McKinsey analysis indicates that in 50 metropolitan areas around the world, home of 500 million people collectively, integrated mobility systems worth as much as USD 600 billion could facilitate benefits including improved safety and reduced population. Cities and megacities will inevitably be confronted with unprecedented pressure to adopt more sustainable modes of transportation further into this century as more and more people relocate to areas that fall into this category; with massive space consumption of automobiles for roads and parking, worsening congestion, environmental issues and high economic costs of cities relying primarily on cars all prominent factors. Public transport has a central role in dictating the future of urban mobility, and the expansion and development of related network will provide cities with viable, safe and quick

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solutions to transporting large numbers on a daily basis. Adding autonomous features to transit vehicles like railways may reduce operating expenditure, while new deployment models such as fleets of shared vehicles can facilitate enhanced flexibility and accessibility. Furthermore, using data from IoT-enabled infrastructure can assist planners as they aim to increase capacity and improve reliability so that mass transit remains competitive with private vehicles and mobility services. Whilst technology solutions will be key enablers in making future urban mobility smarter, faster, cheaper and more sustainable; focus is also required on user experience whether it be through integrated experience or seamless

transfers in order to facilitate the highest levels of services across air, land and sea – multimodal forms of transport. Dubai has one of the world’s most progressive autonomous vehicles strategies in place, which aims to transition 25 per cent of the emirate’s total transportation to autonomous mode by 2030, and rail is integral to the initiative. Dubai provides world-class rail mobility solutions and we take great pride in supporting the Government by being responsible for multiple modes of rail transportation in the emirate. If we are indeed about to enter the fourth industrial revolution, Dubai will be at the forefront and leading the way locally, regionally and internationally.”

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Building the UAE’s highest road Jebel Jais is part of the Hajar Mountain Range in Ras Al Khaimah. It is the highest peak in the UAE. And for centuries unreachable by most. For 8 years, a fleet of Volvo FMX Trucks carried a total of more than 5.5 million cubic meters around the clock building a 36 km road that goes up more than 1910 meters. The rugged terrain, steep slopes and loose rock were not a challenge for Volvo FMX, which is built tough for such conditions. That is why more than 30 of our Volvo FMX trucks completed this ambitious road project without any major breakdown. To watch the full video please visit www.volvotrucks.ae/jebeljais

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F e at u r e

Bosch’s Volker Bischoff is the General Manager and Vice President of Robert Bosch Middle East, gave us his thoughts on how driverless cars will have lasting socio-economic impact and the challenges it faces in big cities: Regional government authorities such as those in Dubai have developed plans to ensure that driverless transport will have lasting socioeconomic impact through the ‘Dubai Autonomous Transportation Strategy ’. The strategy aims to transform 25% of the total transportation in Dubai to autonomous mode by 2030, involving five million daily trips, saving AED 22 billion in annual economic costs. However, a large volume of cars, urban topography and its associated chaos and unpredictability including technical glitches such as signal blockage are among several other challenges that can present themselves. The value of reliable services that enable precise localization is therefore critical and undeniable for autonomous mobility technology to succeed. The challenge with satellite-based positioning lies in dealing with inaccuracies in the data global navigation satellite system (GNSS). Satellites orbit the earth at a distance of 25,000 kilometers and at speeds of 4,000 meters per second. As their signals make their way to the ground, they must pass through the ionosphere and layers of cloud in the troposphere, which disperse the signals and introduce errors. While the signals are still accurate enough for today’s navigation systems, they do not meet the needs of automated driving. The sensor we developed allows automated vehicles to precisely determine their position: the vehicle motion and position sensor combines a high-performance receiver unit for GNSS signals, also featuring integrated inertial sensors – comparable to the inner ear in humans. GNSS signals are not the only information the vehicle motion and position sensor receive thanks to wheel-speed and steering-angle sensors, which are akin to the human sense of touch, it knows where the car is headed and how fast. For this technology to reach its full potential, it requires collaboration among several

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entities and the use of correction data supplied by various providers. In Germany, we set up the Sapcorda joint venture in 2017 to address this. With the help of a network of terrestrial reference stations whose positions are precisely known, these providers can correct for the inaccuracy of GNSS positioning information. The correction data reaches the car via a cloud or geostationary satellites. There, the features are used to generate an

independent map level, which in turn forms part of a highly accurate map. For their part, automated vehicles detect the road features around them and consult the map to see whether the traffic signs or guardrails they have recognized match those recorded there. This comparison enables the cars to accurately determine their position in the lane – relative to the highly accurate map – down to the nearest centimeter.

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Bernard Roux, VP and Country Director at Thales UAE, who gave us an overview of the ground transportation industry and delved deeper into how digitisation of transportation can help countries like the UAE and the wider region: Passenger transport across the world is increasing in volume, making the networks more complex to manage. Further, we also see growth in cargo movement – within nations and beyond. The most significant driver of growth in the ITS market, no doubt, is the investment in digitalisation of public networks – to revamp aging infrastructure and to create seamless interconnection for people. The value that digitalisation brings is unbeatable: for example, the use of AI in public transport helps unlock the value of data to improve the quality and efficiency for the public transport sector, especially in railways. The advances in digital technologies such as AI, big data analytics, Internet of Things (IoT) and blockchain, bring the concepts of

seamless mobility and efficient interconnectivity to a reality. This presents many opportunities to the public transport and railway sectors. Similarly, leveraging digital solutions in signaling and interlocking systems will increase operational capacity, the frequency of operations and reduce delays. The Middle East is one of our strongest markets, and we have demonstrated our excellence in supporting the region with advanced logistics and transport systems, especially in landmark projects such as Dubai Metro. We had implemented a complete technology package for Dubai Metro to deliver a world-class passenger experience including solutions such as our SelTrac™ CBTC for reliable driverless operations, easy multimodal ticketing and pas-

senger information. Similarly, in Egypt, Thales supports the modernization programme of the Egyptian National Railway – to improve safety, capacity and reliability. Our signaling upgrade has made it possible to increase train speeds from 20 to 160 km/hour and reduced time intervals between trains from 10 to 5 minutes boosting the frequency of services. With the region investing in smart and urban mobility infrastructure, we see tremendous potential for growth in the region. Specific to the UAE, initiatives such as Etihad Rail will transform the nation’s public transport network and our aim is to contribute to such national initiatives and bring our advanced suite of technology to support the region.

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On a consumer level, Hala, the joint venture between Roads & Transport Authority (RTA) and Careem, CEO Clemence Duterte explains how consumers are being empowered with the use of their Hala app:

“We are empowering our customers with knowledge and choice, at the best value. Street hailing or call center booking customers can now book a ride through the touch of a button directly on the Careem app. They can enjoy a shorter estimated time of arrival of fewer than 5 minutes and can know the fare estimate upfront, the driver’s details, and journey route,� Clemence explained. Empowering their customers is at the forefront for Clemence whose proven track record as an energetic leader with an unwavering passion for designing and implementing great customer experiences, backed by solid precedence in building successful brands. She believes that the key to success lies in ownership, transparency and empowering people. Every project of this scale presents opportunities to learn and improve, and we hope to resolve existing traffic concerns and challenges that come within the e-hailing service domain. We will continue to prioritise the customer journey to improve efficiencies with sustainable and environmentally friendly solutions.

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P o rt s

Future of Port Operations Peter Richards, Group CEO, Gulftainer, discusses about preparing for the future of port operations

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Maritime trade continues to stand the test of time by evolving and adapting to market requirements and, is still responsible for 90 per cent of global trade. At this moment the industry is still witnessing change on many fronts, in the form of consolidation, larger ships, new technology, and so on. These changes have at once been impressive and drastic, impacting stakeholders with an unprecedented force – and more importantly, offering a taste of what the future holds. At the centre of the overhaul within containerized shipping is a renewed demand for speed and affordability. The online shopper and the virtual marketplace have as much a bearing on this trend as does the manufacturing and industrial sector. As a result, the supply chain is constantly in a state of reinvention, across shipping lines, port operators, and 3PL providers. In this context, terminal operators play a rather significant role, being the crucial link in an efficient supply chain between goods and their destination. From our own experience of launching greenfield operations and revamping brownfield facilities, it is clear that ports can boost the supply chain in more ways than other elements in the industry. We have learned many lessons along the way, but five top factors stand out as the most impactful: 1. Quality service and customer care, above all: Some things in the industry hardly

change. Service being one of them. A study into competitiveness across container terminals that polled 68 C-suite executives in 35 countries highlights this point clearly. According to the respondents, the most important factor raising the competitiveness of their ports is “level of container terminal service and customer care.” This is followed by terminal charges and rebates. At a time when cutting corners to save costs is commonplace, the ability to retain relationships and win new customers often comes down to the quality of service on offer. 2. Technology for convenience and accountability: Automation is expected to bring 10 to 35 per cent more productivity, yet as McKinsey reports, the uptake in the industry has been slow. In fact, the implementation of an advanced terminal operating system, which seamlessly connects customers, cargo and port facilities, can bring unparalleled efficiencies to the operations. 3. Scalable infrastructure: Port equipment is key to enabling capacity expansion to ensure customers access to their containers in a timely manner. With the advent of post-Panamax ships, the installation of purpose-built ship-to-shore cargo-handling infrastructure should be a priority. This along with new and improved RTG

cranes, reach-stackers, empty container handlers, and tugmaster & trailer combinations are expected by customers, small and big. Across our portfolio, from Iraq to the US, in Delaware and Florida, the demand for container cargo and breakbulk handling capabilities is on the rise. 4. One-stop capabilities: The prospect of end-to-end services has proved to be highly profitable in the industry. Whether this means faster customs clearance through on-site qualification and testing services, or access to warehousing or 3PL facilities, the bottom line for customers is ease, security and speed of delivery of goods to the end-user. 5. Sustainable innovation: There is nothing more exciting than imagining the port of the future. There is a lot of innovation under way, from drones to green technology that can reduce the incidence of empty containers, wastage of resources and other such challenges wearing out the industry. What we don’t see enough of is investment from large port operators towards startups and innovators, in the absence of which true innovation is stunted. The way forward is collaboration and finding solutions at the intersection of the time-tested approach of managing ports and imagining what else is possible.

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Interview

Intelligent Transportation Kasun Illankoon spoke to Bernard Roux, VP and Country Director at Thales UAE, who gave us an overview of the ground transportation industry and delved deeper into how smart transportation can help the UAE and the wider region

Tell us how Thales has been performing over the past 12 months and has the company achieved what it set out to do in 2019? The past 12 months have been strong for Thales with global order and sales intake for the first quarter of 2019 at â‚Ź2,273 million â‚Ź3,361 million respectively. Operating profitability improved across all segments and

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reached 10.6%, a level never before achieved by the Group. Our strategy for this year and up to 2021 is to support profitable growth by continuing to roll out operational performance initiatives and to strengthen our customer-centric culture. We continue to significantly invest in tech innovation, coupled with our strength in digitalisation, we see our business model as robust and balanced.

Tell us what are Thales overall goals and objectives in terms of growth and expansion in the Middle East? The Middle East is one of our strongest markets, and we have demonstrated our excellence in supporting the region with advanced logistics and transport systems, especially in landmark projects such as Dubai Metro. We had implemented a

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complete technology package for Dubai Metro to deliver a world-class passenger experience including solutions such as our SelTrac™ CBTC for reliable driverless operations, easy multimodal ticketing and passenger information. Similarly, in Egypt, Thales supports the modernization programme of the Egyptian National Railway – to improve safety, capacity and reliability. Our signaling upgrade has made it possible to increase train speeds from 20 to 160 km/ hour and reduced time intervals between trains from 10 to 5 minutes boosting the frequency of services. With the region investing in smart and urban mobility infrastructure, we see tremendous potential for growth in the region. Specific to the UAE, initiatives such as Etihad Rail will transform the nation’s public transport network and our aim is to contribute to such national initiatives and bring our advanced suite of technology to support the region. According to the Global Intelligent Transportation System (ITS) Market was valued US$ 22.5bn in 2017 and is expected to reach US$ 54.3 Bn by 2026, can you tell us factors behind this rise in value? Passenger transport across the world is increasing in volume, making the networks more complex to manage. With more than 50% of the world’s population living in urban areas,

it is imperative that the transport sector has to evolve to meet ever increasing needs. Further, we also see growth in cargo movement – within nations and beyond. The most significant driver of growth in the ITS market, no doubt, is the investment in digitalisation of public networks – to revamp aging infrastructure and to create seamless interconnection for people. Can you give us an overview of the ground transportation industry and delve deeper into how smart transportation, which is essentially IoT in intelligent transportation, can help the UAE and the wider region? The value that digitalisation brings is unbeatable: for example, the use of AI in public transport helps unlock the value of data to improve the quality and efficiency for the public transport sector, especially in railways. The advances in digital technologies such as AI, big data analytics, Internet of Things (IoT) and blockchain, bring the concepts of seamless mobility and efficient interconnectivity to a reality. This presents many opportunities to the public transport and railway sectors. Similarly, leveraging digital solutions in signaling and interlocking systems will increase operational capacity, the frequency of operations and reduce delays.

What are the obstacles you believe the industry will face moving forward and what steps can be taken to overcome this? The key challenge that the industry will face is the increasing pressure on public transport networks and the need for investments to drive infrastructure upgrades. That is why we reiterate the value that digitalisation brings to the entire ecosystem. It is imperative that aging public transport networks are revamped with modern systems put in place to meet increasing demand. For us, with our global experience and tech leadership, we are uniquely positioned to offer a smooth, safe and interconnected travel experience. Do you believe cities like Dubai are ready to incorporate more smart transportation or for example like autonomous cars on its roads? Of course, Dubai has been at the forefront in adopting smart transportation solutions and has already underlined its commitment to smart mobility solutions – not only to enhance the welfare of its citizens and visitors but also to cut down on emissions. Thales is strongly positioned to support Dubai’s smart city big ambition and we have proved that we are truly a local partner to our customers in the UAE.

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Ta lk i n g p o i n t

Hala Ride Kasun Illankoon spoke to Clemence Duterte, CEO of Hala, on how the joint venture between Roads & Transport Authority (RTA) and Careem offers an innovative way to book a Dubai Taxi on the Careem app

Inception of Hala Hala is a joint venture between Roads & Transport Authority (RTA) and Careem that offers an innovative way to book a Dubai Taxi on the Careem app. Hala e-hailing service offers riders access to the most available and convenient travel in Dubai at the touch of a button. Recently, it achieved its landmark onemillionth trip booked through the e-hailing service on 9 September.

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Highlighting the significance of the remarkable achievement, Clemence Dutertre, CEO of Hala, said: “This is indeed a key moment for us. It reflects the incredibly positive reception our service has had in Dubai, being embraced by riders as a booking method they have been waiting for, and have now made Hala their first choice.” As the CEO, Clemence will be driving adoption of the smarter way to hail an RTA Dubai

Taxi on the Careem app. Her goal is for Hala to become top-of-mind for anyone looking to get around the city quickly and safely, at the best value. She will also be responsible for the growth of the brand and will oversee the smooth operation of the service. “Hala enables residents and visitors of Dubai to locate the closest Dubai Taxi on demand, see a fare estimate and time of arrival before booking their ride. It offers the rider

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available to get people to wherever they work, rest or play. Goals and Objective “Our goal is for Hala e-hailing service to be the primary mobility choice people think of when they want to get from point A to point B and will empower and enable our customers with access to world-class technology and a seamless safer journey. We want Hala’s successful model and implementation in Dubai to inspire other cities as we expand into the region,” said Clemence. “Hala aspires to revolutionize the way people move around by taxi. Our long-term vision is to grow and offer innovative mobility to redefine the way people move around their cities. We want to transform transportation by tapping into multi-modal public transport and take Hala’s success to cross other cities in the UAE and the region,” Clemence elaborated.

advantages such as knowing the trip route and being able to share the trip details with others. Riders can see the car and driver information and can rate the service and driver. They can also connect their credit card for easy, hasslefree payment via the Careem app. Hala provides riders who book a Dubai Taxi on the Careem app the full Careem app benefits, including Careem loyalty program Rewards,” said Clemence Dutertre.

The collaboration between RTA and Careem - a first of its kind in the GCC between a public transport authority and a private company - was envisioned to uplift the public transport network and sharing mobility. Hala is driven by the mission to progress public transportation by harnessing and leveraging the power of progressive and emerging technologies to make public transportation safe, seamless and

Hala Services Hala offers the same price per km as street hailed Taxis, with a starting fare starting from 8 AED during regular hours to 12 AED during peak hours, with no multiplier price surge. Customers can enjoy a more affordable choice, with the same benefits as the Careem app including the Rewards program. Hala also offers less downtime for the Captains who can optimize their time on the road through customer proximity matching and real-time alerts of geographical areas experiencing high demand. “We are empowering our customers with knowledge and choice, at the best value. Street hailing or call center booking customers can now book a ride through the touch of a button directly on the Careem app. They can enjoy a shorter estimated time of arrival of fewer than 5 minutes and can know the fare estimate upfront, the driver’s details, and journey route,” Clemence explained. Empowering their customers is at the forefront for Clemence whose proven track record as an energetic leader with an unwavering passion for designing and implementing great customer experiences, backed by solid precedence in building successful brands. She believes that the key to success lies in ownership, transparency and empowering people. Every project of this scale presents opportunities to learn and improve, and we hope to resolve existing traffic concerns and challenges that come within the e-hailing service domain. We will continue to prioritize the customer journey to improve efficiencies with sustainable and environmentally friendly solutions.

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S u s ta i n a b i l i t y

Forefront of Change In July 2019, DP World acquired Topaz Energy and Marine in a US$1.1 billion transaction. The deal, expected to be complete before the end of the year, will integrate Topaz Energy and Marine with DP World’s P&O Maritime business, following which the company will operate as one. Kasun Illankoon speaks with RenÊ Kofod-Olsen, CEO of P&O Maritime, to know more.

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Tell us how the company has performed over the past 12 months? Market uncertainty has continued to challenge the offshore support vessel (OSV) industry, with volatile oil prices fluctuating in the range of USD60-65/bbl in the first half of the year. In contrast, Topaz has weathered the storm and outperformed the market in all key peergroup performance benchmarking throughout the crisis. In the past, Topaz was predominantly a provider of support vessels. However, since 2012, Topaz’s fundamentally changed strategy by moving into a portfolio of short and longterm strategic contracts, and a range of marine logistics and services solutions. Testament to the success of our strategy, are our results for the first half of 2019, where we continued to perform above market and delivered yet another robust set of results with a 56% increase in revenue to US$235m and an 83% increase in EBITDA to US$141m compared to US$77m in the first six months of 2018. Additionally, in early July, we announced DP World’s acquisition of Topaz Energy and Marine. DP World has been heavily investing in companies within the marine logistics sector that have strong outlooks across revenue and backlog along with long-standing, blue-chip customer relationships. Tell us what are your goals and objectives for 2019 and beyond? Oil prices are more stable now, than they

have been over the last few years, and our market-leading US$1.5bn contract backlog provides both financial strength, and longterm earnings visibility. Additionally, the E&P offshore marine market is expected to grow to US$19.4bn by 2023, according to Westwood Global Energy. Topaz remains a strong, dynamic and profitable business, and a leader in offshore marine logistics, capable of leveraging the opportunities provided by industry growth. Our future will be delivered by our combination of assets – our fleet, the geographies in which we operate, now including the markets in which P&O Maritime has a presence, innovation and digitisation, our dedicated people, strong balance sheet, and finally our expansion into a full provider of marine logistics services. What were the expectations for Topaz Energy in 2019? What makes us industry leaders is our ability to adapt to change. Despite the market downturn, we understood changing customer needs and applied our craftsmanlike approach, our innovative spirit and our maritime expertise, in order to propose and implement solutions which challenged conventional thinking methods. And so, our expectation for 2019, was the same for any given year – to continue to challenge market expectations, in order to deliver and exceed client demands, safely, every single day. Additionally, we positioned ourselves to be an even stronger partner to our eco-

system – moving both clients and suppliers in the rapidly-changing marketplace to add value through distinct, more tailored services and solutions. In turn, we further developed the logistics portfolio, which set the basis as we began our integration with P&O Maritime, under DP World, in July. We have worked closely with DP World leading up to this deal and believe that not only will the increased scale allow the business to drive efficiencies and earnings growth, the merged entities will also bring complementary advantages in terms of backlog, customer base and geographic focus. Can you tell us the importance of using new technology in improving your services? We added select new services to our portfolio, and integrated strong IT capabilities, enabling us to create more innovative and 21st century solutions to our customers. We realized that customer demands increasingly are shifting towards advanced services, and in response we’ve years ago begun to digitize aspects of our service offering and built advanced algorithms to optimize the supply chains of our customers. By having real-time visibility of vessel locations and applying advanced routing systems, we can provide our clients with better, more reliable updates on delivery of cargo. This has optimized their supply chain by improving project scheduling, reducing downtime and the need for manpower and support services.

Logistics News ME | October 2019 | 41


S u s ta i n a b i l i t y

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When it comes to sustainability, how is Topaz Energy contributing towards increasing sustainability in the marine and logistics industry? Topaz takes great pride in being a responsible corporate citizen and positively influencing the communities in which we operate. We create shared values for communities in our host countries through employing locally, developing in-country supply-chains and supporting the long-term community development. The long-term success and growth of Topaz relies upon our continued ability to improve the quality of services and products we deliver, whilst fulfilling effective duties of care to operational safety, human health and environmental well-being. This includes our commitment to environmental performance and prevention of pollution, including targeting “Zero Spills” in all operations. We are increasingly working with our clients to integrate and optimise their supply chains. One important part of this is route optimisation of our vessels where we see significant potential to minimise distances travelled and thereby emissions. Additionally, we teamed up with Baker Hughes GE (BHGE) to conduct lube oil analysis which can tell us a great deal about the condition of our ships. The new system, pioneered by BHGE, is now enhancing the maintenance and upkeep of our vessels to achieve optimal performance and maximise the time each vessel spends in the field on operations, using the Internet of Things (IoT). What are your thoughts on the overall market situation for your industry in the UAE? While the price of Brent continues to be volatile, it is at a more constructive level now than it was during the downturn, and most analysts are forecasting Brent prices to remain in the US$60-70/bbl range in the near future – a very healthy level for the oil companies, given the cost rationalization which they recently underwent. As an industry, I don’t believe we can rationally expect to ever revert to the days where oil companies had the flexibility to spend without proper control of costs, and hence our sector will predictably not again see the lavish ROI’s and paybacks per single vessels basis as in the previous cycles. It is however, my prediction that this downturn has changed the industry fundamentally, and possibly for the better,

42 | Logistics News ME | October 2019

which presents us with a tremendous opportunity, to even exceed the earnings potential through a portfolio of services. The global demand for energy is rising significantly and is expected to grow by 12% by 2025, primarily due to forecasted population growth, a substantial increase in GDP per capita, and a growing middle class in nonOECD countries. Tell us what makes Topaz Energy unique or what makes it stand out? Topaz is a strong, dynamic and profitable business, and a leader in offshore marine logistics. Our people truly are our most valuable asset, and it is their craftsmanship on the ships and

on shore which differentiate Topaz. Guided by our performance-led culture, we are driven forward by the elements of the Topaz Way: if you see it, you own it; if you have the capability, you have the duty; the status quo is regression; accept no loss or accident which could have been avoided by applying constant care; and when we win, we win together. After the transaction with DP World has been completed, we will be joining forces with their marine business, P&O Maritime. The portfolios of Topaz and P&O Maritime complement each other nicely, and we will together be able to offer current and new customers a broad range of marine and logistics services, which makes us stand out as well.

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M a r ke t o ve r v i e w

Redefining Retail Logistics Thierry Delvaux, CEO of JLL MEA, and Craig Plumb, Head of Research, JLL MENA discusses about how new ‘retail logistics’ industry creating wave of alternative investment opportunities in Dubai Dubai’s retail sector is undergoing a major transformation with the rise of e-commerce and evolving customer preferences shaping a new ‘retail logistics’ industry. A wave of innovative new real estate solutions in the logistics sector are creating alternative investment opportunities, reveals JLL’s new report, launched at Cityscape Global 2019. As a global leader in both retail and logis-

44 | Logistics News ME | October 2019

tics, Dubai is well placed to leverage the retail industry’s rapidly changing dynamics including rising e-commerce, new disruptive technologies and evolving consumer tastes. To take full advantage of these trends, retailers are addressing the challenge of fulfilling increasing demand for online delivery while balancing an oversupply of traditional retail space. The answer is neither brick-and-mortar nor e-com-

merce but a combination of both into ‘omni channel retailing’ which allows retailers to optimize their real estate portfolios and boost their performance. “Portfolio optimization is driving demand for more and better quality warehousing as retailers seek to satisfy changing business models to meet the needs of their growing consumer base. Many retailers are finding themselves

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Thierry Delvaux, CEO of JLL MEA

with excess stock within stores but a shortage of quality warehousing. We estimate that at least 50% of recent demand for warehouse space across the UAE comes from the retail sector,” said Craig Plumb, Head of Research, JLL MENA. The boom of online retail is increasing demand for warehousing space and logistics solutions that meet today’s fast paced customer demands. Retailers are now investing across the full supply chain, not just traditional physical spaces. Commenting on the new research, Thierry Delvaux, CEO of JLL MEA) notes, “Technology will be a game changer in supporting omni channel servicing in the emerging retail logistics sector. Private and public sector industry players will have to adopt and fast track a

Craig Plumb, Head of Research, JLL MENA

number of new innovations in the supply chain such as automated delivery, tech enabled personalization, digitization of addresses and investing in pick up locations.” “Dubai has traditionally adopted a ‘build it and they will come’ philosophy - a strategy that has grown the city into the modern metropolis it is today. In the current era of uncertainty a new strategy of ‘come and you can build it’ is emerging, creating an opportunity for these players. This is what is redefining the future of retail in Dubai. Retailers need to earn more from their real estate, to economize through embracing smart technology that boosts returns,” commented Delvaux. According to JLL, increased private sector participation will be a key driver for success of the retail logistics industry. Greater flex-

ibility allowing real estate players to build customized warehouse facilities is expected to attract global retail chains and optimize returns for traditional retailers entering the online delivery space. “We expect to see more investment from the private sector in years to come as a number of recent relaxations to government regulations will allow greater flexibility on building bespoke logistics solutions. Another factor driving this growth is the creation of specialist funds seeking to invest in the logistics sector,” added Delvaux. JLL’s ‘Redefining Retail Logistics – the Dubai Experience’ report gives an overview of the challenges, opportunities and wave of innovative solutions propelling the Emirate’s retail and logistics sectors.

Logistics News ME | October 2019 | 45


S u ppl i e r Ne w s

Supplier News

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

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

UAE Shipping Association signs MOU with International Chamber of Shipping

Marking a milestone achievement in the UAE maritime industry, which saw the UAE Shipping Association (UAESA) becoming a full member of the International Chamber of Shipping (ICS). The MOU outlines the roles that UAESA and ICS will have to represent shipowners and operators in all shipping sectors and trades across the global and regional organisations, regulators and other bodies which impact and affect the interests of international shipping. ICS Chairman, Mr Esben Poulsson said: “The UAE has a proud history of looking to

the sea for its future. From the early 1900s when Dubai was declared a free port to today when the UAE places seaport infrastructure quality at the heart of Vision 2021. It is therefore only natural that as the representatives of the world’s national shipowner associations we should want to further cement our relationships to ensure that we work as effectively as possible in support of a global regulatory framework for shipping. Mr Poulsson added: “The UAE has been leading the way when it comes to the energy transition. As the ICS looks to

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shape the future of shipping we can only benefit from the experience and leadership that the UAE is providing at this time of transformation for the maritime sector.” Representing UAESA, the Chairman Capt. Abdulkareem Al Mesabi, said: “As chairman of the UAE Shipping association I have the pleasure to announce that today we will be officially joining the International Chamber of Shipping (ICS) as its most recent full member. “The ICS has a large number of full and associated members and thus a near worldwide network. When I say “nearly”

I mean that so far the Middle East has not been represented and I am happy to close this gap and to offer UAE based shipowners a platform to voice their concerns and opinions and to be heard!” Capt. Al Mesabi added: “UAESA was launched in 2005 and formally established in 2007. The vision of the association is to promote and protect the interests of ship owners and the shipping community of the UAE, whilst additionally providing a shared platform for interaction within the remaining maritime industry. www.cbnme.com


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Swisslog celebrating 50 years of Vectura, its automated stacker crane for pallet warehouses

Swisslog is celebrating a major milestone: Vectura, its automated stacker crane for pallet warehouses, is turning 50. “We are very proud of this success story,” says Dr. Christian Baur, CEO of Swisslog. “We built the first crane in 1969. Over the decades, many committed employees have continued to enhance and optimize it – all the way to today’s Vectura system, which is still a top seller in our portfolio.” 575 logistics projects completed in 35 countries, with a total of 3,870 stacker cranes installed: The numbers speak for themselves. And the customer list is equally impressive: Walmart, Target, Woolworth, Michelin Nordic, Gries Deco Company, and Rewe are just a few of them. Others relying on Swisslog’s pallet handling technology include Scandinavian fashion retailer Varner, Jurong Cold

Store, UAE-based leading bottled water supplier Mai Dubai as well as Almarai, the Saudi Arabian group and one of the largest vertically integrated dairy company that also specialises in fruit juices, bakery products, poultry and infant nutrition. The Vectura story began 50 years ago with a 10-meter hydraulic crane designed to store and retrieve pallets. The first fully automated version followed 10 years later, in 1979. As proof of the technology’s versatility and durability, a Swisslog customer in Norway is still using it today. Since then, Vectura has evolved into a high-tech system based on state-of-the-art software and a range of different control hardware. “We were looking for a scalable, cost efficient, ergonomic and green solution”, explained Anders Eriksson, Head of Logistics at Varner. “Swisslog’s innovative solution design was the final convincing factor.”

UPS Expands Express Services to the Middle East and Other International HighGrowth Markets

UPS today announced the addition of three new countries served by UPS Worldwide Express, and broadened its reach across 76 cities in the Indian Subcontinent, Middle East, and Africa (ISMEA). The service has now been expanded to Algeria, Reunion and Namibia. As part of UPS’s international suite of shipping services that guarantees time- and day-definite delivery for urgent shippers, UPS has also enhanced its services with the addition of UPS Worldwide Express Freight Midday export from Oman. “UPS’s goal with these investments in our smart global logistics network is to make the global marketplace more accessible for our customers. This latest expansion will help businesses of all sizes in the Middle East, Africa and India to cross borders and international customers capture growth opportunities in this dynamic region,” said Rami Suleiman, president for UPS ISMEA. “By delivering faster, earlier and expanding our reach, we help customers in these high growth markets increase their value, strengthen their competitive advantage and stand out on the global stage. From small businesses to Expo 2020 Dubai participant countries, UPS continues providing importers and exporters with greater flexibility to meet their time-sensitive requests.” Logistics News ME | October 2019 | 47


Unsung Heroes

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Neena Dominic

We talked to Neena Dominic, Corportate Communications Manager, about her role and how she is helping contribute to Gulftainer’s success What are some of your goals and objectives that you wish to achieve in Gulftainer? As the key communications manager for the company in the region, Gulftainer’s story is one that I am proud to narrate. With its foundation laid in Sharjah over four decades ago, Gulftainer has established strong roots globally and stands as a true success story born out of the UAE. My personal goal is to narrate this story well to ensure that Gulftainer is widely recognised for its quality and productivity-focused approach towards customers. ‘Partnering progress’ is not just a tagline at Gulftainer. It is a value that we practice by creating winning partnerships and ensuring our customers receive the best value in partnering with us. Our marketing goal is to ensure that our customers recognise this commitment of ours and further increase their customer satisfaction. In terms of Business Intelligence, how does your department help in positioning Gulftainer as one of the market leaders? Our aim, as part of business intelligence, is to rigorously monitor changing economic trends and customer journey minutely to identify gaps and innovate solutions that result in improved costs and efficiency. One such instance is the introduction of S.P.O.T. (Sharjah Port of Trade), a new valueadded supply chain solution from Gulftainer, earlier this year. We needed to think creatively to provide our customers efficient logistics solutions leading to the conceptualization of S.P.O.T. which optimizes the supply chain process while substantially reducing time and cost for customers. It is not enough that we create a great product. It is important to package the messaging in the simplest form to ensure full percolation of the offering so that the customer understands the substantial value behind it. SPOT is just an example of several other services being developed or are in the pipeline.

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What are the attributes that you bring to Gulftainer and how has it been utilized since you have been there? An important business skill I have developed from my professional training in the US, and bring into my work at Gulftainer, is empathy. The ability to understand what our customers want and cater to their individual needs as opposed to offering them a one-size-fits-all model. Having been exposed to the highly competitive marketing environment in New York and Washington D.C., I have learnt to be agile and alert to the ways in which the world is changing, and its influence on the logistics industry, in order to innovate and communicate with impact.

How important is teamwork for you? How does teamwork help your department is achieving its goals? Two brains are always better than one. What happens when several brains of different cultures and experiences come together? We begin by probing into the problems of our customers and the challenges of the industry and focus on jointly finding solutions. Sometimes, we find that by merely tweaking existing solutions, we can deliver outstanding results for our customers. We take pride in working out solutions that make our customers’ operations more successful with each team member bringing his/her own perspective to the idea pot. These sessions bring out the best in each of us while also helping us create seamless supply chain solutions for our customers.

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Jumeirah Beach Park

TR6 Dubai Canal

‫ﺣﺪﻳﻘﺔ اﻟﺼﻔﺎ‬ Safa Park

DC2

‫ﺟﻮدﻟﻔﻴﻦ‬ Godolphin

‫ﻗﻨﺎة دﺑﻲ‬

‫ﺣﺪﻳﻘﺔ‬ ‫اﻟﺼﻔﺎ‬ Al Safa Park

‫اﻟﻐﺒﻴﺒﺔ‬ Al Ghubaiba

BUR DUBAI

‫ﺟﻤﻴﺮا‬ Jumeirah

CR1

CR1

‫ﺟﻤﻴﺮا‬ JUMEIRA

‫ﺳﻮق اﻟﺬﻫﺐ‬ Gold Souq

‫ﺑﺮ دﺑﻲ‬ Bur Dubai

‫اﻟﺴﻄﻮة‬ AL SATWA

‫اﻟﻮﺻﻞ‬ Al Wasl

‫ﺧﻮر دﺑﻲ‬ Dubai Creek

Jumeirah Beach Hotel

CR1

‫ﺳﻮق دﻳﺮة اﻟﻘﺪﻳﻢ‬ Deira Old Souq

DC1 DC2 TR6

‫ﺷﺎرع اﻟﺸﻴﺦ زاﻳﺪ‬ Sheikh Zayed Road

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‫اﻟﺨﻠﻴﺞ اﻟﺘﺠﺎري‬ Business Bay

‫اﻟﺨﻠﻴﺞ اﻟﺘﺠﺎري‬ Business Bay

Al Seef Al Maktoum Bridge

‫اﻟﻘﻮز اﻟﺼﻨﺎﻋﻴﺔ‬ AL QOUZ IND

Deira City Centre

Creek Park A

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Floating Bridge

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Dubai Creek Golf & Yacht Club

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Purchase your ticket and relax in our new air-conditioned station at Dubai Festival City. Cruise between the mall and the Al Jaddaf Marine Station or easily connect to your journey onward as we are integrated with the Creek Metro Station.

Creek/Al Jaddaf

DC1 BM2

DC1

Metro Green Line

AL GARHOUD

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Dubai Design District

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Enjoy easy connectivity across the Al Jaddaf area.

Garhoud Bridge

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‫اﻟﻘﺮﻳﺔ اﻟﻌﺎﻟﻤﻴﺔ‬ Global Village

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Dubai Festival City

BM2

Dubai Festival City

Dubai Creek

Abra Water Bus

Dubai Creek Harbour

AL RASHIDIYA

Abra and Ferry timings: Routes

Timings

Frequency/Fares/Features

Air-conditioned Abra Al Jaddaf Marine Station to Dubai Festival City (BM2)

Saturday – Thursday 7:00 am - 12:00 midnight Friday 9:00 am - 12:00 midnight

10 minutes (Peak Hours) 20 minutes (Off-peak Hours) AED 2 per person, per trip in one direction

Ferry Round Trip – DFC

Every day 4:00 pm

Min. of 8 passengers

For detailed timings and information, visit the respective customer service office inside the station. Children under 5 years travel for free only for commuter trips.


Save the date

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

October

6-10

October

16-19

26th WORLD ROAD CONGRESS Abu Dhabi, UAE Since the first World Road Congress held in Paris in 1908, PIARC has organized Congresses every four years in a member country with the aim of sharing worldwide techniques, innovations, political strategies, trends and developments, best practices and experiences in the fields of road, infrastructures and transport between Ministers, governments, private sector, road and transport administrations and organizations, academics, solutions’ providers, experts and practitioners from more than 120 countries across the planet. Abu Dhabi International Boat Show Abu Dhabi, UAE Abu Dhabi International Boat Show features the latest industry gathering for luxury yachts, leisure marine and fishing. It caters to all the marine industry professionals and the whole family seeking a great day out or weekend.

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October

8-10

October

28-31

Pacific International Maritime Conference Sydney, Australia The Pacific International Maritime Conference provides the tips which will be helpful in managing competing demands of availability, cost, levels of safety and environmental standards which the maritime industry must adapt to achieve. It will highlight the ship survey, ship owner and ship repair organizations, the reliability of ship systems and optimizing their maintenance. Energy Storage Aerospace Hamburg, Germany Energy Storage Aerospace discusses topics are the optimal design of electric systems for MEA, power electronics high-temperature PE, commuter aircraft and helicopter, move to more electric aircraft – results and upcoming projects, hybrid-electric distributed propulsion system, energy storage as the key to MEA design success, energy storage as the key to MEA design success. Energy storage for aerospace merges expert talks on future technologies with real-life case studies. www.cbnme.com


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