Logistics News ME - April 2015

DWC

CATERPILLAR:

HIMOINSA

Logistics Enclave gains traction

Rapid rise in the Middle East

Power Partnership with FAMCO

CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE

APRIL 2015

THE

LOGISTICS-INSURANCE

INTERFACE

Providing Insulation, Indemnity & Protection to the Logistics Trade

2 | Logistics News ME | April 2015

CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE

APRIL 2015

Contents

8 | NEWS SCAN:

ROUNDUP OF REGIONAL & INTERNATIONAL NEWS

12 | LOGISTICS-

INSURANCE INTERFACE : LOGISTICS IS INEXTRICABLY LINKED WITH INSURANCE

22 | INSIDER

INTELLIGENCE: TOM CRAIG ON SEA-FREIGHT LINES & RATES FORMULATION

Features

12

24 | DWC’S

LOGISTICS DISTRICT: BUSINESSES GRAVITATING TO LOGISTICS ENCLAVE

24

40 | EHRHARDT +

CATERPILLAR IS BULLDOZING ITS WAY

54 | TATA TRUCKS:

PARTNER: MAKING THE CASE FOR MH SOLUTIONS

TATA’S PRIMA, THE WORLD SMART TRUCK

56| HIMOINSA:

42 | HEAVY

HIMOINSA—FAMCO PARTNERSHIP POWERS ON

MOVEMENT: TOP STEEL LOGISTICS COMPANY’S STEELY RESOLVE

58| PROFESSIONAL

46 | ASIA SUPPLY

PERSPECTIVES : STRATEGIES THAT HELP REDUCE SHRINKAGE

CHAIN INSIGHTS: MARK MILLAR

48 | PRYSMIAN

CABLES : LONG HOLD ON ELITE PROJECTS

51 | CAT SCAN:

42

60 | SOFT TALK:

ENGAGEMENT WITH MUSTAPHA KAWAM

Logistics News ME | April 2015 | 3

Logistics News ME | April 2015 | 5

Editor’s Note UNCERTAINTY IN LOGISTICS “The mistake is thinking that there can be an antidote to the uncertainty.”—David Levithan, US Fiction Writer.

While I was a student in College, I recall I was taught the Heisenberg’s Uncertainty Principle in my Physics Class.

This Principle has come to haunt me as I broached the subject of the Logistics –Insurance Interface, the Cover Story for our current April 2015 edition.

We live in an uncertain world and one area, among many others, where the ‘Insurance’ element has permeated deep and is now well-entrenched, is the freight transportation sector where ‘insurance’ can be bought for all possible scenarios and uncertainties. In fact it is now de rigueur to purchase insurance to ward off losses resulting from cargo being waylaid, stolen, pilfered, delayed, damaged, untraceable or lost attributable to human error or force majeure –calamities, natural disasters, destruction & other providential acts.

Logistics News Middle East spoke to Engr. Mahmood Al Bastaki, CEO, Dubai Trade and quizzed him on Tradeshield, the new robust service (on Dubai Trade) that enables customers to apply and obtain standard insurance policies online. We also spoke to a cross-section of General Insurance companies that offer both Shari’a compliant and non-Shari’a insurance policies for their take on the extent of insurance penetration in the logistics sector and the logistics-insurance interface.

Elsewhere, our Special Focus Feature centres on Dubai World Central’s fast developing 21 sq. km. Logistics District, which has already attracted some of the biggest industry

names. The Logistics District is at the heart of a new global economic centre for the MENASA (Middle East, North Africa & South Asia) region with a rising combined GDP upwards of US$ 23 trillion. The Logistics District is the multi-modal logistics platform specially designed to enhance the ability of companies to cater to this sprawling market, offering businesses greater efficiencies throughout the entire supply chain. We have an exclusive interview with Mohsen Ahmad, Vice President, Logistics District at DWC. I am proud to welcome the prolific and experienced Tom Craig, President, LTD Management, a logistics consulting firm near Philadelphia, Pennsylvania, USA. Tom, an MBA from Penn State University & BS in Business Administration from Penn State, which has the top supply chain management programme in the US, has extensive logistics experience in different industries with companies such as General Electric, Abbott Laboratories and 3M. Tom will be featured regularly in Logistics News Middle East with his column ‘Insider Intelligence’.

We have an interesting line-up for you our dear readers in this edition. It is packed with news, views, interviews, features, profiles and interesting editorial input. We hope you will professionally benefit by it!

Do let us know your opinions, what you feel or want from Logistics News Middle East. Drop me a line. We would love to hear from you. We hope you enjoy reading this edition!

Malcolm Dias Editor malcolm@bncpublishing.net

Editor Malcolm Dias Malcolm@bncpublishing.net

Group Sales Manager Jayant Dey Jayant@bncpublishing.net

Managing Director Walid Zok Walid@bncpublishing.net

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For all commercial enquiries related to Logistics News Middle East contact

Marketing Mark Anthony Monzon Mark@bncpublishing.net

T +971 50 1971200

Director Rabih Najm Rabih@bncpublishing.net Director Wissam Younane Wissam@bncpublishing.net Group Publishing Director Diarmuid O'Malley Dom@bncpublishing.net

6 | Logistics News ME | April 2015

CONTRIBUTORS Mark Millar, Joy Thattil, Prakash PK Menon

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No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher.

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NEWS

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GULFTAINER CONTAINER VOLUMES UP Iain Rawlinson

GLOBE EXPRESS SERVICES RECEIVES MAERSK AWARD YET AGAIN Globe Express Services was recently bestowed the coveted Platinum Award by Maersk Line, the world’s largest ocean carrier and the most reliable container shipping company.

The award, which recognizes the best performing logistics providers and top customers of Maersk Line, was received by the company for the fourth year in a row.

The award was presented to Mustapha Kawam, Managing Director-Gulf States, Globe

Express Services and John C. George, Jebel Ali Branch Manager, during a recent presentation ceremony.

“Globe Express Services’ relationship with Maersk Line Shipping goes beyond a decade and has mutually benefitted the companies. It not only demonstrates our commitment to consistently deliver state-of-the-art supply chain solutions and freight services of the highest quality,” asserted Kawam

6.4 million

TEUs moved across Gulftainer’s global portfolio in 2014 QATAR-INDIA DIRECT CONTAINER SERVICE LAUNCHED Milaha Maritime & Logistics, a subsidiary of the Qatar based Milaha Group has Khalifa Ali Al- Hitmi announced the launch of the first direct container service between Qatar and India.

The non-stop service will connect Qatar’s Doha port with India’s largest port Nhava Sheva, also known as Jawaharlal Nehru Port, located in Mumbai, Maharashtra. The move will further facilitate the thriving 8 | Logistics News ME | April 2015

trade activities between the two countries that have witnessed a phenomenal growth in the recent years.

Unlike existing services in the market, the new weekly service

by Milaha will enable direct shipments between Nhava Sheva and Doha without the need for transshipment in Jebel Ali or elsewhere, thus increasing reliability and reducing transit time and costs.

Khalifa Ali Al-Hitmi, President and CEO of Milaha commented, “The launch of a fast and direct container service by Milaha will support the increasing trade volume, where imports into Qatar from India reached a total value of US$ 989 million in 2013-2014.”

GWC TO PROVIDE EQUESTRIAN LOGISTICS Gulf Warehousing Company (GWC) has recently announced that the company will undertake equestrian logistics projects in the State of Qatar. GWC Equestrian will be an end-to-end solution, transporting horses and their related assets by land and air, as well as offering all related value added services.

Among these services will be international airfreight service for the movement of all types and breeds of horses worldwide, quarantine and supervisory services, supervision of customs clearance and tarmac supervision, aircraft charter services, as well as consultancy for the movement of horses.

“Horses are very near and dear to Arab culture, and hence the solutions we offer must take all sensitivities into account. GWC has been the industry leader offering comprehensive logistics solutions for many years, which we will put to the service of providing equestrian logistics,” affirmed GWC Chairman Sheikh Abdullah Bin Fahad Bin Jassem Bin Jabor Al-Thani.Most recently, GWC provided logistics support during the transport of 128 horses for the Chi Al Shabaq international event.

Gulftainer recorded an eight per cent growth in container volume in 2014, achieving a total of 6.4 million twenty-foot-equivalent units (TEUs) across its global portfolio.

Iain Rawlinson, Group Commercial Director of Gulftainer commented: “Our extensive network and technological expertise are the strengths that have enabled us to expand our footprint to new locations.

We continuously invest in enhancing our infrastructure, thus boosting reliability, operational efficiency and productivity.”

In global markets, Gulftainer’s Saudi terminals recorded impressive growth with Northern Container Terminal accounting for 1.9 million TEUs, sustaining previous-year trends, while Jubail Container Terminal (JCT) noted a growth of 22 per cent to over 396,000 TEUs. The total volume at the Saudi terminals was over 2.29 million TEUs. Gulftainer’s Umm Qasr (Iraq) terminal also accomplished a significant growth of 46 per cent in 2014, while the Recife terminal in Brazil marked a growth in volume of 7 per cent. Gulftainer’s UAE terminals recorded a total volume of 3.8 million TEUs in line with the all-round growth in business. The company marked another significant milestone, with the Sharjah Container Terminal (SCT) surpassing 400,000 TEUs in annual throughput for the very first time.

8% Gulftainer’s growth in 2014 container volume

NEWS

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LIBERTY LOGISTICS, FLS IN STRATEGIC PARTNERSHIP Liberty Logistics, UAE’s leading provider of freight-forwarding services and the Fast Logistic Solutions Group (FLS), a leader in global transportation and logistics, have entered into a joint venture agreement to synergize their individual strengths to offer superior services to clients locally and globally.

The partnership agreement was signed

by Sheikh Khalid Abdul Aziz Al Qasimi, Chairman of Liberty Investment

Company, the holding company of Liberty Logistics, and Al Ameen, Chairman and founder of FLS Group.

“Liberty Logistics is delighted to enter into a major partnership with Fast Logistic Solutions Group. This will enable us to significantly expand our footprint on the international logistics map,” said Sheikh Khalid Abdul Aziz Al Qasimi, Chairman of Liberty Investment Co.

“FLS Group, with 40 offices in Africa, UAE, India and the Far East, is on a high growth track and this partnership with Liberty Logistics gives us a new springboard for further expansion,” commented Peter Scholten, CEO of FLS Group.

The signing ceremony was attended

by Vishal Dhamija, General Manager, SNTTA Cargo and senior officials from both companies.

MEED ANNOUNCES WINNERS OF TRANSPORT QUALITY PROJECTS

Six transport projects from across the Gulf region have scooped national awards for their achievements and are now in the running for regional recognition.

The Ministry of Works’ Mina Salman Interchange Project (Bahrain); Construction and maintenance of the

Subiya Highway Project by the Ministry of Public Works, entered by PACE (Kuwait); Al Raha Beach Project

by Aldar Properties, entered by AECOM (UAE); The New Doha International Airport Passenger Terminal Complex by the New Doha International Airport Steering

Committee, (Qatar); Extension of Roads under Arriyadh Old Airport (ERAOA) Project by the High Commission for the Development of Arriyadh, (KSA); and Jeddah Storm Water Drainage Program by Emarat of Makah Province / Saudi Aramco, (KSA) were declared national winners in the fifth edition of the MEED Quality Awards for Projects, in association with Mashreq Bank.

“Complying with the highest quality standards in the projects market is critical not just to the success of individual projects, but also for their invariable impact on the society,’’ said John Iossifidis, Executive Vice President, Group Head – Corporate & Investment Banking, Mashreq Bank.

Logistics LogisticsNews NewsME ME || April April 2015 | 9

NEWS

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ABU DHABI PORTS FORECASTS 17% GROWTH OF CARGO Following a record year in 2014, Abu Dhabi Ports is forecasting 17% growth across all general cargo activities in 2015.

“As many development projects in Abu Dhabi are underway, we look ahead to a promising 2015 with healthy growth figures that not only confirm the Emirate’s booming economy but Abu Dhabi Port’s supporting role as an important enabler for development and trade,” remarked Capt.

Mohamed Juma Al Shamisi, CEO, Abu Dhabi Ports.

In 2014, Abu Dhabi Ports celebrated a record year for cargo. The Khalifa Port Container Terminal, which is managed and operated by Abu Dhabi Terminals (ADT), saw a record throughput of more than 1 million TEUs in one year (1,137,679 TEUs), which marked an increase of 26%, while the bulk and general cargo volumes grew by 37% compared to the 2013 figures.

17% Projected increase in cargo 1,137,679 TEU in 2015 over 2014 at ADPC

throughput in Khalifa Port

26% TEU increase in 2014 over 2013

DHL RETAINS ‘TOP COMPANY TO WORK FOR TITLE’

DHL Express, the global logistics leader, has been officially recognized as the number one in the ‘Top Companies to Work for in the UAE’ in 2015 by Great Place to Work Institute UAE, part of a global research, training and consultancy firm that recognizes the best workplaces in over 50 countries worldwide.

The official list, published in the 16th of March issue of Bloomberg Businessweek Middle East

2,000 km

Length of the GCC Rail Route when completed 10 | Logistics News ME | April 2015

magazine is a ranking of the nation’s 15 best employers based on the confidential feedback of employees and an audit of management practices. A ceremony to celebrate the winners was held recently.

Frank-Uwe Ungerer, Country Manager for DHL Express UAE, commented: “I am proud of our dedicated employees who are the reason we have retained our number one position for top company to work for in the UAE.”

24The number of rail

network projects under construction in the GCC

HONEYWELL SOLUTIONS SHOWCASED AT ME RAIL SHOW Honeywell demonstrated its integrated solutions at the recently concluded Middle East Rail Exhibition, the leading trade show attracting global decision makers from the rail and infrastructure industries.

The GCC rail route is estimated to cover more than 2,000 km when complete and currently involves around 24 rail network projects, with some of the larger projects including the Etihad Railway Network, Riyadh Metro, Jeddah Metro, and the Qatar Integrated Rail Project.

These multi-billion dollar rail investments are driving strong regional demand for scalable and high quality security and building solutions that meet the challenging needs of passenger safety whilst improving efficiencies.

“Honeywell’s integrated building and fire safety solutions portfolio is scalable, can be customized to the needs of any facility and reduces operational costs for our customers,” stated Mark Fenton, Business Leader, Honeywell Fire Safety, High Growth Regions.

NEWS

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Faris Saif Al Mazrouei (r) and Saleh Mohammed Bin Lahej

ETIHAD RAIL, BIN LAHEJ CRUSHERS SIGN MOU Etihad Rail has signed a strategic partnership to enhance the distribution network of Bin Lahej Crushers, a specialist in the production and sale of

quarry products.

This is the latest in a series of agreements Etihad Rail has signed with various crushing, quarrying

and construction companies which have selected rail as the preferred distribution solution.

Once commercial operations are launched, the railway’s freight services will benefit the UAE’s aggregates sector significantly by providing faster, reliable, more economic and higher capacity logistics services across the emirates and the wider GCC region.

Under the Memorandum of Understanding (MoU), Bin Lahej Crushers will use the UAE rail network during Stage Three to transport an annual volume of five million tons from the Bin Lahej Crusher location in Fujairah to Etihad Rail distribution and export terminals across the UAE. The deal was signed by Faris Saif Al Mazrouei, CEO of Etihad Rail & Mohammed Saleh Mohammed Bin Lahej, Group CEO of Saleh Bin Lahej Companies.

JORDAN AUTHORIZES TASNEEF FOR CERTIFICATIONS During the recent Arab Maritime Congress which was hosted by the Hashemite Kingdom of Jordan, Tasneef, the UAE Maritime Certification Body and the Jordanian Maritime Authority signed a collaboration agreement to authorize Tasneef to issue the necessary certificates and inspections for ships in accordance with relevant maritime conventions.

The two agreements were signed by Captain Waleed Al Nahdi, Communications and Marketing Director at Tasneef and

representatives on behalf of the Jordanian Maritime Authority and the Jordanian Academy for Maritime Studies during the Arab Maritime Congress; in the presence of HE Dr. Abdallah Bin Mohamed Belhef Al Nuaimi, Minster of Public Works and Chairman of the Federal Board of Directors for Land and Sea Transport.

Eng. Rashid Al Hebsi, CEO of Tasneef, expressed his satisfaction on this occasion saying, “At Tasneef, we will perform our part

of the agreement with objectivity and transparency where our priorities are represented and in the issuance of necessary certifications.”

DUBAI CUSTOMS LAUNCHES SMART INSPECTION SYSTEM

HE Sultan Ahmed bin Sulayem, Chairman of DP World and Chairman of Ports, Customs and Free Zone Corporation recently launched the ‘Smart Customs Inspection System’ which is the first of its kind system,

invented by one of Dubai Customs employees to better facilitate to better facilitate the customs inspector’s functions.

The system aims to improve the customs experience for air travellers,

ensuring smooth and seamless airport procedures.

The new invention has the capacity to conduct the whole inspection process in less than three minutes.

The integrated multi functions system is capable of recognizing its operator, identifying risk level, recommending the safety level for manual inspection referral , timing the inspection process, establishing a record of the manually inspected bags, analyzing peak times for manual inspection and creating a passengers’ data base.

HE Sultan Bin Sulayem was accompanied by Ahmed Mahboob Musabih, Director of Dubai Customs, during the inauguration ceremonies.

Logistics News ME | April 2015 | 11

COVER STORY

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THE LOGISTICS INDUSTRY INSURANCE INTERFACE

“THE MOST IMPORTANT QUESTIONS OF LIFE ARE INDEED, FOR THE MOST PART, REALLY ONLY PROBLEMS OF PROBABILITY.”—PIERRE-SIMON LAPLACE, PROMINENT FRENCH MATHEMATICIAN OF THE 19TH CENTURY Given the vagaries, risks, vulnerabilities, uncertainties and complexities of the moving goods locally, regionally and globally, the general insurance industry has always cast a long shadow on the logistics sector. Add to that uncontrollable factors such as natural calamities, strikes, breakdowns, lockouts, war & strife-zones, force majeure (natural disasters flooding, hurricanes, earthquakes and volcanic eruptions) and other chance occurrences. Insurance is at the core of virtually every transaction and consignment in the world of transportation, carriage, distribution, supply chain and logistics. The fortunes of the two industry verticals have always been intertwined, joined at the hips.

The insurance industry has never been looked at closely by the trade media, so Logistics News Middle East has chosen to focus its April 2015 edition on the Logistics IndustryInsurance Interface. We will examine how big a part general insurance constitutes in the logistics domain and the ramifications and implications of a tranche of insurance services offered by insurance, reinsurance and ‘Takaful’, the Sharia-compliant insurance portfolio to the wider logistics industry.

We will talk to industry experts from Dubai Trade & the insurance camp and the repercussions for trade & commerce, the competition, the future and how the insurance industry is evolving & identifying with logistics partners moving forward—Editor.

DUBAI TRADE’S TRADESHIELD Dubai Trade is the premier trade facilitation entity that offers integrated electronic services from various trade and logistics service providers in Dubai under a single window. It underlines Dubai’s position as the ideal base for trading across borders with its unique geographical location, excellent infrastructure and seamless processes across the private sector and government agencies. Dubai Trade is a subsidiary of Dubai World through the intermediary company, Port & Free Zone World and integrates the major stakeholders in the trade and logistics operations including DP World.

Tradeshield is a new robust service on Dubai Trade’s portal that enables customers to apply and obtain standard insurance policies online. The e-platform has been created to further streamline trade processes, converting manual procedures to faster more convenient electronic transactions.

Creating a true one stop shop for all shipping related services.

Engr. Mahmood Al Bastaki, CEO, Dubai Trade spoke to Logistics News Middle East about Tradeshield, its implications, its versatility and the working mechanisms of the insurance component in trade transactions.

12 | Logistics News ME | April 2015

COVER STORY

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Engr. Mahmood Al Bastaki,

Explain briefly the concept of Dubai Trade’s Tradeshield e-insurance platform?

Tradeshield is an online insurance platform that helps traders and intermediaries such as Freight Forwarders to compare cargo insurance quotes from the leading insurance companies (both local and global) real-time and also buy their preferred policy all from the comfort of their office using laptops, tablets or mobile phones.

This is just the first step and we are working to offer more insurance products through this portal.

How does the insurance mechanism work on this site?

Customers are asked a few related information such as commodity types, shipping and customer details following which they are presented with a choice of insurance companies. Once they make their selection, the system will transmit the information provided to the insurance companies.

We have worked with the various insurance companies to standardize this service and now customers will receive real-time quotes back from their preferred insurance companies. They can view the draft policy and ensure that they are satisfied with the cover and premiums before purchasing their policy using our Rosoom e-Payment wallet gateway.

How does an insurance company qualify as a registered insurance services provider on the Tradeshield e-insurance platform?

Dubai Trade works with the UAE Insurance Authority to ensure that we associate with the right Insurance companies and also listen to our customers regarding their preferred insurance partners.

What range of services do registered insurance companies offer customers via this conduit?

Currently Dubai Trade offers the single shipment cargo insurance. Very soon, we will expand this service to offer Open Cover cargo insurance.

This will make it even more convenient for larger traders to insurance their cargo movements across one full year (for example).

How many insurance companies are registered to provide insurance solutions on this platform?

Currently housed on the portal are AXA Insurance, RSA, ADNIC, Dar Al Takaful, Noor Takaful, Oman Insurance with more to follow.

Is the customer free to choose his insurance services provider of choice from outside the platform or non-registered insurance firms?

Yes, the customer will always have this choice but we are confident that Tradeshield will become their ‘new habit’ for all their insurance needs.

How are claims processed? Directly with the insurance company via the Tradeshield platform?

All claims are serviced directly by the insurance companies. We will enhance the communication channel for this important service in the future after analyzing the full process that is currently practiced by the industry.

Logistics News ME | April 2015 | 13

COVER STORY

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Dr. Ahmed Aljanahi

NOOR TAKAFUL Noor Takaful was established in early 2009, to provide a broad range of Islamic insurance (takaful) general and customized insurance products and services to individuals, families, groups and companies in the UAE market. Both Noor Takaful entities are subsidiaries of Noor Investment Group (NIG) which is 50% owned

by Dubai Ventures Group and Investment Corporation of Dubai (ICD) and 50% owned by individuals, who are also predominantly members of the Dubai and Abu Dhabi ruling families. Logistics News Middle East spoke to Dr. Ahmed Aljanahi, Managing Director, Noor Takaful & Deputy Group CEO of Noor Investment Group LLC As an insurance services insurance provider, how important / significant is the supply chain & logistics sector (aviation, energy, goods transportation, marine cargo, and marine hull) for Noor Takaful (and approximately what percentage of business does this segment account for?

The supply chain and logistics sector is important for the entire insurance industry, and is an especially important area of growth for Noor Takaful. In line with the UAE’s growth in trade volumes, the supply chain and logistics space is expanding rapidly in the UAE and

offers significant business opportunities.

Dubai plays a key role in linking markets in Europe, Africa, the Middle East and Asia.

As Dubai consolidates its status as a global trade hub, we expect the supply chain and logistics sector, and therefore also our takaful business, to grow in parallel. We have partnerships with a number of significant players in the sector and we intend to expand our footprint as part of our strategy to support Dubai’s import and export trade.

Is the supply chain / logistics / transportation sector a growing division for Noor Takaful and what efforts are being made towards increased interface with the industry?

Noor Takaful is in a privileged position to leverage the services of its sister organization Noor Bank which provides dedicated services to its trading clients through Noor Trade. Noor Takaful’s products form part of a fully integrated end-to-end solution for commodity-movers and aligned services. In addition, Noor Takaful is partnering with Dubai Trade (further details are mentioned below) and other similar organizations, to offer a broad range of takaful products that cater to the multifaceted needs of the sector.

Does Noor Takaful offer both non-Sharia and Sharia-compliant Takaful insurance products?

Noor Takaful offers only Shari’a compliant products. Noor Takaful›s business model is founded on the Shari’a principle of Wakala and all our products are certified as being Shari’a compliant by our Shari’a supervisory board that

comprises of well-known and respected Islamic scholars.

Please expand on Noor Takaful’s involvement as the first insurance partner with Dubai Trade?

Essentially, Noor Takaful will enable Dubai Trade customers to have access to an Islamic insurer for the first time. A wide choice of marine and cargo takaful solutions will be available through Dubai Trade’s online Tradeshield platform, which will enable Noor Takaful to provide safe online insurance with instant quotes to customers.

However, our aspirations go beyond simply offering marine cargo cover – we want to be the provider of choice for all employee benefits, property and transportation coverage needs.

What e-cargo insurance services does Noor Takaful offer to Dubai Trade›s clients through the latter’s Tradeshield portal?

We are in the early stages of offering marine cargo coverage and over the coming weeks we expect to see significant growth in online business transactions for SME clients based on their needs.

How is the Noor Takaful--Dubai Trade partnership faring thus far and what are your plans for the future?

As a business insurance specialist, we›re always looking for opportunities to improve and extend our offering to clients. We will continue to develop our brand, products and services in support of HH Sheikh Mohammed Bin Rashid Al Maktoum’s vision of making Dubai the center of the Islamic economy.

How has Noor Takaful performed in 2014 in this sector in this region & what is your outlook for 2015?

Having laid the foundations in 2014, we expect to see sales growth coming through in the second half of 2015. We recognize that this is a fragmented and competitive marketplace, therefore business will be only be achieved through genuine value addition to our customers.

What are Noor Takaful’s expansion plans for the short / long-term futures & where do you see the growth areas?

The UAE market is highly competitive hence scale and cost efficiency are important. There are clearly defined growth opportunities that reflect the vibrant trading environment of this region and its growing connections with world trade. We see developing interest in the provision of savings and pension products for the workforce, as well as the continued roll-back of state-funded healthcare.

14 | Logistics News ME | April 2015

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www.drakescull.com Logistics News ME | April 2015 | 15

COVER STORY

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Saleh Abdul Ghaffar Al Hashimi

DAR AL TAKAFUL Established in 2008with a paid capital of AED 100 million and listed on the Dubai Financial Market (DFM), Dar Al Takaful is a subsidiary of Mawarid Finance, which owns 25 % of the Shari’a-compliant insurance company.

Logistics News Middle East spoke to Saleh Abdul Ghaffar Al Hashimi, Managing Director, Dar Al Takaful.

As an insurance services insurance provider, how important / significant is the supply chain & logistics sector for Dar Al Takaful Insurance and approximately what percentage of business does this segment account for?

This is a very important sector for Dar Al Takaful and we have been working these past few years to become an insurer of choice to the members of the logistics fraternity. While marine business does not constitute as big a segment as motor or medical, it is nevertheless the fastest growing segment for us.

BIOGRAPHY

Saleh Abdul Ghaffar Al Hashimi attained degrees from some of the world’s most prestigious institutions; he has distinguished himself in senior managerial positions in the banking sector. He strives to continuo his family’s deeply rooted history in the business fraternity.

Is the supply chain / logistics / transportation sector a growing division for Dar Al Takaful and what efforts are being made towards increased interface with the industry?

It definitely is and Dar Al Takaful has already launched its online Marine platform where approved users can log in and obtain quotations for marine cargo insurance with minimal effort. This will facilitate easy policy issuance without having to waste valuable time in obtaining quotes and waiting for policy documents.

Does Dar Al Takaful offer both nonShari’a and Shari’a-compliant Takaful insurance products?

Dar Al Takaful, being a Shari’a compliant company, offers only Shari’a compliant insurance products.

Please expand on Dar Al Takaful’s involvement as the first insurance partner with Dubai Trade?

Dubai Trade provides Marine Cargo insurance facilities under the brand ‘Trade Shield’ where the registered users using any of the listed services of Dubai Trade can get online quotations for marine cargo insurance. Dar Al Takaful is on the platform of Dubai Trade offering Shari’a compliant insurance solutions for marine cargo.

We offer insurance cover for Air, Sea and Land transits with varying cover options.

16 | Logistics News ME | April 2015

What e-cargo insurance services does Dar Al Takaful Insurance offer to Dubai Trade›s clients through the latter’s Tradeshield portal?

At this time, Dar Al Takaful offers marine insurance for single cargo shipments. Work is underway for the same facility to be available for Marine Open Covers also.

How is the Dar Al Takaful Insurance-Dubai Trade partnership faring thus far and what are your plans for the future?

We are delighted to partner with Dubai Trade who, like us, believe in leveraging technology for delivering value and providing customer convenience and satisfaction.

The partnership with Dubai Trade will enable us to make use of this opportunity in understanding the logistics requirements and challenges of each industry line and addressing the same.

How has Dar Al Takaful performed in 2014 in this sector in this region & what is your outlook for 2015?

We have doubled our marine cargo contribution during the year and expanded our customer base on the back of the marine cargo web solutions. As for 2015, we plan to focus on freight / cargo forwarders segment and also provide increased haulier’s liability coverages.

What are Dar Al Takaful’s expansion plans for the short / long-term futures & where do you see the growth areas?

During the last years, we have opened branches in Abu Dhabi and Sharjah and this year, we have taken up more space and have moved our corporate office to Business bay.

This shall enable us to expand our services to our clients. Dubai is continuing to develop as a regional hub and this provides an opportunity to grow our portfolio business to the logistics sector.

What are the opportunities and challenges from the Supply Chain & Logistics industry for Dar Al Takaful?

Supply chain and logistics services, being a fast paced industry, rely on speed. This is also reflected in the insurances they require. A key to growth and profitability will be the ability to analyze customers’ needs and then respond quickly with differentiated and advanced insurance solutions as and when they arise. We are therefore continuing to work on enhancing our online services portal to ensure that their needs are met real time, 24/7.

Logistics News ME | April 2015 | 17

COVER STORY

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Engr. Mahmood Al Bastaki (r) and John O’brien at the signing ceremony

AXA INSURANCE Present in the region for more than 60 years, AXA Insurance (Gulf) is a large insurer in the GCC with branches across Saudi Arabia, Bahrain, Oman, UAE and Qatar. Logistics News Middle East spoke to John O’Brien, Chief Officer Corporate Solutions – Marine, AXA Insurance (Gulf).

AXA (Insurance) recently joined Dubai Trade’s Tradeshield e-insurance platform.

Briefly what implications does it have for you and why are you there?

AXA joined Dubai Trade’s Tradeshield e-insurance platform which aims to cater to all insurance needs of Dubai Trade customers. This offers customers of Dubai Trade access to AXA’s comprehensive portfolio of marine and cargo insurance solutions online through the Tradeshield platform.

With this, customers can now complete the end-to-end process of purchasing cargo insurance online through the dedicated website www.tradeshield.ae and get the industry-best cargo and marine insurance solutions from AXA. What array of services will AXA Insurance on this platform?

On the Tradeshield platform, AXA Insurance offers a wide array of marine and cargo insurance services that are unique with key differentiators to ensure we meet customers’ needs.

How significant is the Supply Chain & Logistics sector for AXA Insurance (and

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product innovation is paramount but also important is the way you access them, whether individual or collective.

We have increased our technical expertise as well as implemented risk management services. We want to be close to our customers and be seen as advisors to ensure they will consider the solutions that best matches their needs and expectations.

In addition to holding a leading position in the marine insurance markets worldwide we are also experts in health, large risks and risk management as a whole to ensure that we underwrite the right risks through a comprehensive selection process which allowed us to increase our profitability in the region year on year for quite a few years now.

approximately what percentage of business does this segment account for)?

We are witnessing a paradigm shift to publicprivate infrastructure projects which often have more complex insurance requirements and the need to demonstrate high levels of risk management. Awareness is increasing and in this international business, customers are looking for a trustworthy international insurance brand.

AXA presents the market with significant underwriting resources and expertise for supply chain and logistics sector. Our business model is one of a true risk carrier.

As the largest international insurer in GCC and having been present in the region for more than 60 years, AXA’s capabilities allows the company to offer a quick and a flexible approach to the changing needs of the supply chain and logistics sector in a rapidly evolving commercial environment. Having said that, complex insurance solutions need the right technical advice.

Is the supply chain / logistics / transportation sector a growing division for AXA and what efforts are being made towards increased interface with the industry?

Insurance is about risk awareness. We are here for the long term. Therefore, we are leveraging the risk management expertise from the Group and bringing experts in the domain to the region.

As a company, we have always believed in adapting ourselves to the needs and expectations of our customers, and this has helped us differentiate ourselves and our products from our competitors. I think

Which among the logistics segments (air / sea / land/ warehousing / commercial vehicles etc.) account for the most business at AXA? Today, we are basing our strategy on organic growth leveraging the potential of each segment.

We innovate and build new solutions across each vertical in the supply chain and logistics sector to match the customers’ expectations in the country. We factor in the current situation in our plans and are realistic about the path ahead.

Does AXA Insurance offer both nonSharia and Sharia-compliant Takaful insurance products?

Takaful is a very important sector for growth for the insurance industry. The need of the hour for any insurance company is to innovate, and accelerate the development of the sector. We see tremendous growth curve in the Takaful sector.

We think what is most important is to offer products that are compliant with local regulators but more importantly in line with customer needs and expectations.

How is the AXA Insurance-Dubai Trade partnership faring thus far and what are your plans for the future?

Our partnership with Dubai Trade is aimed at growing the overall business and the economy through diverse online products, seamless trade services and innovative processes. With our participation in their online platform, we are giving Dubai Trade customers a wide array of options and choices. This is a new partnership and very much looking forward to growing this partnership.

COVER STORY

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Manik Sethi

IN THE LAST THREE YEARS, ZURICH HAS QUADRUPLED MARINE CARGO PREMIUMS IN THE MIDDLE EAST AND WE HAVE BECOME THE INSURER OF CHOICE FOR MARINE CARGO AMONG BROKERS AND CLIENTS

ZURICH INSURANCE Global Swiss insurer Zurich Insurance has specialized Marine offices in 40 countries with dedicated marine underwriters, able to provide global compliant solutions in over 180 markets, with dedicated Marine Risk Engineers and Claims teams.

Manik Sethi, Underwriting Manager Marine, Zurich Insurance Middle East, spoke exclusively to Logistics News Middle East.

What specific or customized ‘general insurance products’ does Zurich offer the supply chain, logistics & transportation sectors in the region?

Zurich is one of the world’s largest marine cargo insurers and provides a tailored marine cargo insurance product specifically designed for the Middle East market covering physical loss or damage to shipments worldwide by sea, air or land while in transit or in storage. Our marine cargo insurance product has various industry specific extensions to ensure that all industries

and cargo types have the required level of cover and service to be fully protected.

Zurich’s offering is differentiated in the market by its customer servicing, global reach, risk engineering expertise and proactive claims process. For instance, Zurich launched the secure Webcargo online tool where clients can easily get a quote and issue their own insurance certificate within minutes. Once a policy is issued you can access it from any system 24/7.

Zurich also has a large risk engineering team in the region that can provide our marine cargo customers with a fresh pair of expert eyes to help them to understand and reduce their loss exposures.

How significant is the logistics market for Zurich?

The United Arab Emirates is major global trading hub. Trade and transport represents a huge portion of the economy and if Zurich did not offer marine cargo insurance and related services then we would not be able to tap into

this large insurance market.

In the last three years, Zurich has quadrupled Marine Cargo premiums in the Middle East and we have become the insurer of choice for Marine Cargo among brokers and clients.

We have achieved this growth by continuing to raise servicing levels, such as the launch of our Webcargo online platform in 2012, and building trust as an insurer that delivers when it matters most to clients, anywhere in the world.

What are Zurich’s expansion plans for the logistics component in the region?

At Zurich, we are forecasting 30% premium growth in Marine Cargo in the UAE. We also have a positive long-term outlook due to the logistics infrastructure investment in the UAE that will continue to drive cargo volumes and Marine Cargo insurance business; this includes the opening of Dubai World Central and the expansion of Abu Dhabi International Airport, Abu Dhabi’s Khalifa Port, Jebel Ali South Industrial and Sharjah Hamriyah Free Zones.

Logistics News ME | April 2015 | 19

COVER STORY

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customers. HeavyMovement has a long relationship with several machinery and attachment manufacturers, engineering firms and workshops. We have vast expertise in the steel industry, we have good knowledge about customer requirements and we have specific know how and understanding of the best practices in the business.

If I have to define HeavyMovement in three words it is Innovation, Technology and Know-how.

What potential do you foresee for HeavyMovement in the region?

There is a current need of new specialized suppliers for the outsourced operations not only in the region but globally. We believe there is a huge potential for the Aluminum industry which has a strong foothold in the region. We are very buoyant about this

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region and foresee business coming our way soon.

What challenges confront HeavyMovement at home and in the region?

Our current challenge is to keep pace with the growth in business in terms of team development and financing, since the investments are relatively large. We are a family-owned business, not focus on growing too fast, we prefer to do it steadily and better.

How has HeavyMovement fared in 2014 and what is your outlook for 2015?

In 2014 as in the preceding years 2013 and 2012 our operations fare well. We obviously have to make big efforts in partnerships with our customers to maintain the growth momentum.

How is the outsourced metals logistics sector faring in Spain?

Regarding the outsourced logistics operations in the metal industry in Spain it looks like companies have started to speed-up the new tendering processes. The economic climate and outlook in Spain now seems to be getting better compared the immediate past, there is a new surge of activity and many companies feel more comfortable now signing multi-year agreement contracts than before.

What are your goals for HeavyMovement in the region?

Our goals in the region are to start relationships with potential customers, trying to get or to start operations soon and to become the preferred partner for the outsourced operations in the metal industry in the medium and long-terms.

Logistics News ME | April 2015 | 21

INSIDER INTELLIGENCE

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Tom Craig

Tom Craig is a supply chain and logistics consultant with Pennsylvania, USA-headquartered LTD Management. He has real-world logistics and supply chain management experience.

Tom’s experience and capabilities are cutting-edge and bring authority to clients, domestic and global. Tom’s competencies include Blue Ocean strategy using SCM; new supply chains that drive new e-commerce; multi-channel inventory velocity / reduction; lean & best practices; risk assessment segmentation; metrics, processes, technologies, outsourcing and more.

He has written over 70 articles on supply chain management and logistics--many of which are posted at the LTD Management website. He has spoken at conferences worldwide, including the UK, Singapore, China, Hong Kong, UAE, Panama and Nigeria. Additionally, Tom has conducted a master class in supply chain management in China. He is also on the advisory board of the Logistics & Supply Chain Management Society in Singapore.

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STEAMSHIP LINES & RATE STABILITY: CHASING IT THE WRONG WAY? I AM PLEASED TO INTRODUCE TOM CRAIG, PRESIDENT, LTD MANAGEMENT, A TOP-DRAWER LOGISTICS CONSULTING FIRM NEAR PHILADELPHIA, PENNSYLVANIA, USA. TOM, A DISTINGUISHED SUPPLY CHAIN & LOGISTICS PROFESSIONAL AND A WELL-REGARDED AUTHORITY BY INDUSTRY PEERS, WILL NOW BE CONTRIBUTING REGULARLY TO LOGISTICS NEWS MIDDLE EAST. IN THIS DEBUT INPUT, TOM ASSESSES THE VEXATIOUS ISSUE OF CONTAINER TRANSPORTATION RATES, BEST DESCRIBED AS HIGHLY VOLATILE & FLUID. HE EXAMINES ALTERNATIVES AND PROVIDES SUGGESTIONS ON HOW TO COMBAT THIS PRICE ELASTICITY—EDITOR.

C

ontainer lines struggle with rates in many ways. Part of their efforts includes hedging freight rate volatility in an industry that known for its lack of pricing stability.

Many levels of carrier management wish to use hedging tools to stabilize and secure revenues, but they cannot always get this up their hierarchies, often with no justification. This is despite the obvious benefits that it can provide in terms of stabilizing future revenue. Moreover many carriers already use hedging tools to protect themselves against foreign currency exchange and fuel risk, so the idea is not completely alien.

Lines are considering the idea of achieving stability through ‘insurance’ or hedging. To achieve this, they would continue to offer prices as per usual, namely, moving up and down with the market. But they would then buy an insurance contract that offsets the changes in price. For example, if today they buy an insurance contract at $1,100/TEU for next month, they are in effect securing their future income streams regardless of market developments.

If next month, the volatility in the market means prices move lower to $950 per TEU the carrier still sells his physical

space at $950 as usual. However the insurance contract pays the carrier $150/ TEU. The net result is volatility for the carrier is removed and his net income is secured at $1,150/TEU ($950 from shipper + $150 from the hedge or insurance contract). Of course, the reverse of this situation is true, however the end result is the carrier achieves a stable income, but outside of the shipper-carrier relationship.

The problem is that the insurance or hedge is a crutch, not a solution. Hedging is a confirmation that carriers are failing at an important need and that speaks volumes. Enough of proving Einstein and insanity. Stop looking at ways to continue to do business as it is always done.

Nothing changes. So what is the point? It is time for out with old and in with the new for pricing and service.

If you exclude 2009 when the lines laid up many ships to improve rates, what can carriers do? Volatility, almost by definition, shows a lack of control over pricing. And given that ship supply exceeds demand, what are they going to do except the standard practice of cutting rates to fill the ships?

What is next—hedging the hedges?

INSIDER INTELLIGENCE

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ALL MAY NOT BE LOST. IGNORE THE ORGANIZATION SILOS. GO THE OPPOSITE DIRECTION. SEGMENT AND AGGREGATE THE MARKETS IN DIFFERENT WAYS. THIS IS NOT THE STANDARD TRADE LANE, COMMODITIES, VOLUMES, ETC. APPROACH. SEGMENTATION IS A START. FROM THAT DEVELOP APPROACHES--BOTH PRICING AND SERVICE-- FOR EACH SEGMENT. THIS PRESENTS TARGETED ALTERNATIVES. CREATE DIFFERENT PRICE AND SERVICE PROGRAMS FOR EACH SEGMENT

It does not look like carriers can offer and protect non-volatile pricing. To a great extent, they have lost control over their pricing. And to make it worse, there are other factors. Many shippers are being measured by the rates they pay, so they have interest with rates generally being soft. And carriers have abdicated a lot of market pricing to ocean transport intermediaries/freight forwarders. If we are talking beneficial cargo owners, carriers, with their limited sales forces, pursue a select few, basically the large accounts. The small-medium markets are for the forwarders.

There are two parts to carrier profits.

One is cost management. Mega ships offer that with lower expenses. But only a few lines have serious experience with a fleet of ultra large vessels. So how do carriers with one or few mega ships manage cost enough? What about carriers with no ultra large ships?

That brings the second part for profits--revenue management. And that may be the biggest weakness with the lines. The challenge of securing containers for mega ships is not giving away the cost benefits in low rates. A few lines have walked away from large

shippers and the low rates or closed depots in certain locations where pricing was not attractive.

What then happened? Other lines jumped in to get the business that the few deliberately left. What does that say? The question is whether carriers, with their track record, lack the discipline to manage revenue to provide rate stability.

If carriers lack credibility to control price volatility—and the market knows it, then they need a new approach.

Part of the problem--aside from a lack of discipline by management--is the use of the monolithic model for pricing. There is a narrow way to deal with business.

All may not be lost. Ignore the organization silos. Go the opposite direction. Segment and aggregate the markets in different ways. This is not the standard trade lane, commodities, volumes, etc. approach. Segmentation is a start. From that develop approaches-both pricing and service-- for each segment.

This presents targeted alternatives. Create different price and service programs for each segment.

For example, look at the big picture from the supply chain management perspective.

What are carriers selling? What are shippers buying? Are carriers providing

what tiers of shippers really want? Aside from those who chase low rates, think of carrier service and how it has caused supply chain performance erosion. These ideas are conceptual and need the proper analysis and analytics, but they are valid.

Change the whole contract construct.

Stop it from being a rate contract with some service points. For select segments, make it a supply chain operation and performance contract or whatever works for each segment. Understand what is required for managing a supply chain or whatever—position it for each sector.

There are no quick fixes and easy answers to the problem. Change is needed for all parties. Container line chaos helps no one. Stop thinking of pricing as an absolute. Stop thinking about volatility and hedging it. Start thinking about what is really needed in market as defined by its segments.

With the proper approaches, pricing can stop being the #1 topic. There is an underlying flaw with rate based relationships because they are not based on a valid proposition and the lack of real relationship that pricing represents.

Moving away from the monolithic model may be the only way to achieve market stability—not pricing stability per se.

Logistics News ME | April 2015 | 23

DWC- LOGISTICS DISTRICT

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DUBAI LOGISTICS DISTRICT DWC’S CROWN JEWEL POWERS UP REGION

WITH THE NECESSARY PRE-REQUISITES—EXCELLENT INFRASTRUCTURE; PRUDENT & INVESTOR-FRIENDLY POLICIES; SPACE; MODERN, STATE-OF-THE-ART FACILITIES AND RAPID ACCESS IN PLACE, THE LOGISTICS DISTRICT IN DUBAI WORLD CENTRAL IS PERFECTLY PRIMED AS AN EFFECTIVE DISTRIBUTION, RE-DISTRIBUTION AND GLOBAL SUPPLY CHAIN HUB

T

he Logistics District, situated adjacent the fast-developing Al Maktoum International Airport, is the Crown Jewel of Dubai World Central (DWC). Given its unique strategic location straddling and within near proximity to the bustling Jebel Ali Port, the sprawling Jebel Ali Free Zone— currently home to a flourishing business community with over 7,100 companies and the largest concentration of Fortune 500 companies worldwide in a single location; the proposed Etihad Rail Network and the main trans-Emirates highways, the Logistics City was conceived and developed to empower & enable connectivity, flexibility; speedy, fasttrack multi-modal logistics and transshipments.

Dubai World Central is a purpose-built, master-planned city around the Al Maktoum International Airport (AMIA), the largest airport in the world when fully completed.

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Covering an area of approximately 145 square kilometers, DWC is a self-sustained ecosystem that seamlessly integrates this global trade, business, logistics and aviation hub with a smart and sustainable urban city development.

DWC is emerging as a preeminent global destination and is now home to the World Expo 2020.

The Logistics District’s vast hinterland comprises developed and emerging markets in the Middle East, South-East Europe, the CIS Central Asian countries, the Indian sub-continent and the Continent of Africa comprising more than a third of the world’s humanity.

A number of leading companies such as RSA Logistics, Erhardt + Partner, SSI Schaefer, Hellmann-Calipar, Aramex, Kuehne + Nagel, Panalpina, RHS Logistics & INL have already taken advantage of the world-class facilities and infrastructure and are currently operating out of DWC.The

Logistics District celebrates its 5th anniversary this year and to commemorate this milestone, Logistics News Middle East connected exclusively with Mohsen Ahmad, Vice President—Logistics, Dubai World Central for the latest briefing on developments there. Mohsen Ahmad spoke expansively about the Logistics District—its inception, its evolution, its growth to date and its aspirations and ambitious plans for the future.

How has the Logistics District developed thus far in the wider DWC context?

The Logistics District is an integral part of Dubai World Central. The district’s 21 square kilometers are designed to serve as a multimodal logistics platform, enabling fast cycle logistics businesses and providing value-added services such as manufacturing and assembly.

The district caters to contract logistics,

DWC- LOGISTICS DISTRICT

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Mohsen Ahmad, Vice President— Logistics, DWC

THE DISTRICT CATERS TO CONTRACT LOGISTICS, INTEGRATORS, FREIGHT FORWARDERS, AGENTS AND TRADERS

integrators, freight forwarders, agents and traders. We have an attractive mix of products and solutions including leasable land where customers can develop their own facilities, buildings and warehouses for rent or immediate handover on flexible commercial lease terms with room to grow and expand. We are also very open to work with our investors and partners to create customized solutions.

The district’s links to Jebel Ali Port, Jebel Ali Free Zone and the Al Maktoum International Airport (AMIA) via a single custom bonded dedicated logistics corridor has been functional since 2010. Goods docking at Jebel Ali Port can become airborne at AMIA in a matter of hours towards the next point in their journey.

In addition to the land lease opportunity, the Logistics District also offers three types of ready-made facilities. The first is the Freight Complex. It is designed to cater to air freight

THE LOGISTICS DISTRICT IS AN INTEGRAL PART OF DUBAI WORLD CENTRAL. THE DISTRICT’S 21 SQUARE KILOMETERS ARE DESIGNED TO SERVE AS A MULTIMODAL LOGISTICS PLATFORM, ENABLING FAST CYCLE LOGISTICS BUSINESSES AND PROVIDING VALUE-ADDED SERVICES SUCH AS MANUFACTURING AND ASSEMBLY

driven businesses in trading and logistics. The Freight Complex numbers 1, 2 and 3 are fully

occupied. Number 4 is currently under construction and will be ready for occupation by the end of the third quarter of 2015.

The second is the Freight House: it is also designed to cater to air freight driven businesses in trading and logistics. The third is the Logistics House, designed to cater for sea freight or 3PL driven businesses in trading and logistics.

The Logistics Enclave is home to several industry heavyweights. Why, in your opinion, have these leading names gravitated to the Logistics District?

There are several reasons – the primary one being that Dubai World Central is where they see the future. Most of our logistics business partners tell us that they are drawn to the wider vision of Dubai World Central. They appreciate what we are working to achieve and recognize the project’s significance. We

have what they need to grow – a strong and evolving ecosystem that sustains their core business – and we offer some distinct advantages.

First, DWC has the proximity. For all logistics company, being located close to transport hubs is a strategic priority. Proximity to the airport really matters. It saves time and money, adds to operational convenience and helps them reach their customers faster. The Logistics District brings organizations as close as they can get to the Al Maktoum International Airport as they possibly can, in terms of setting up offices and warehouses. Further, Jebel Ali Port is just under 15 minutes by road.

Second, the Logistics District offers excellent connectivity. As I mentioned earlier, the Logistics District is an integral part of the Logistics Corridor, so being based here means getting airside access to AMIA and landside access to Jebel Ali Port.

Logistics News ME | April 2015 | 25

DWC- LOGISTICS DISTRICT

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proximity to transport hubs, operating in an integrated ecosystem can hold a greater appeal for small and medium sized companies than to larger ones, who can leverage on economies of scale.

How will the eventual connectivity with Etihad Rail be a game changer for the Logistics District?

Etihad Rail, once operational, will redraw the UAE’s logistics map and will boost trade and commerce. Rail is a quick, cost-effective and reliable mode of transit; it lends itself well to the transport of almost every sort of cargo.

The benefits will escalate even further once Etihad Rail integrates with the trans-GCC railway. It will open a new chapter in crossborder trade.

Moreover, Etihad Rail, once complete, will also have a terminal close to Dubai World Central. A new mode of transport is an exciting prospect for all companies based within the Logistics District.

Third, we offer the infrastructure and suitable products and solutions that suit the business of logistics. In terms of infrastructure, we have a network of excellent roads and utilities. Our products include built-to-suit warehouses and a large, leasable land bank. The latter fact allows our existing partners the latitude they need to expand their facilities. In fact, many of them have already opted for such expansion more than once.

Finally, there is the business appeal of operating within a rich industrial ecosystem.

Dubai World Central is a rallying platform for companies associated with the aviation, aerospace and logistics sectors. Several of our partners enjoy synergies and do business with each other. It helps when they are geographically in the same area. And of course, being a master-planned city, Dubai World Central is developing a strong residential and commercial dimension, which also adds to the appeal of the destination.

What other big names are you also expecting to move into or expand at the Logistics District in the foreseeable future?

We have IKEA, which is currently constructing its new regional distribution center. We also have DHL Danzas – our partner since 2010 – is building two new facilities.

The Landmark Group is developing their distribution centers. DB Schenker Logistics and Deal Logistics are also opening new facilities here, while 26 | Logistics News ME | April 2015

Mohebi Logistics is relocating its corporate HQ to the Logistics District.

Very recently, Total Freight International (TFI) opened a large warehouse in the Logistics District. It was unique on two counts—the first SME to move in and the first 3PL Services Provider from Dubai Cargo Village to relocate. What does this say about the Logistics District’s attraction for SMEs and does this mark a new phase in SMEs bee-lining to the Logistics District?

At the Logistics District, we are aiming to attract not just the larger players – we are also placing great emphasis on inviting SMEs, as they are the backbone of economies. Along with the bigger companies, we would like SMEs also to be an integral part of the Logistics District’s historical development.

Towards that end, we are actively working to create an ‘incubator environment’ for SMEs in the Logistics District.

We appreciate that small and medium sized organizations have the agility and the flexibility to grow, but have less leeway when it comes to making large capital investments for the infrastructure they need. Here is where the Logistics District comes in. Our role is that of an enabler – we help SMEs by making available such capital-intensive infrastructure for them. For example, we develop plug-and-play infrastructure such as pre-built warehouses. This allows SMEs to reserve their funds for growth purposes while we provide them with the infrastructure and facilities they need.

We are seeing a steady inflow of SMEs into Logistics District. Arguably, the district’s unique benefits such as seamless connectivity,

What are your expansion plans for the Logistics District? What new (financial) investments are being planned for Logistics District / DWC? We are perpetually looking to grow and upgrade our portfolio of products and solutions in a way that practically responds to market needs.

As mentioned, a major way we are doing this is to develop our assets in a way that frees logistics companies from the capital burden of developing essential infrastructure, so that any focus on doing what they do best.

As a multi-modal logistics hub, how do you see all stakeholders and constituents coming together in harmony to further the interests of the Logistics District?

An excellent advantage Dubai enjoys is the harmony between all stakeholders across the board. Here, we see the private sector working hand-in-hand with regulatory and government entities, training entities, etc., united by a common purpose. For example, the Etihad Rail has garnered cross-sector support as all stakeholders recognize rail as the preferred mode of transport for their goods. Etihad Rail has signed more than 54 MoUs with a number of customers throughout the Emirates – in industries ranging from petrochemicals and agriculture to aggregates and waste.

The Logistics District enjoys the same synergy and spirit of collaboration because every player knows how interlinked and interdependent the logistics industry is.

I also perceive a measure of healthy pride which all our partners share. It is a good feeling to be a stakeholder in the wider Dubai World Central ecosystem – one that will ultimately host the largest airport in the world.

Warehouse Management Software LFS for more

Efficiency – Transparency – Quality

Monitoring Coordination

Control Traceability

Optimization

Guidance

Selected References:

www.ehrhardt-partner.ae

Logistics News ME | April 2015 | 27

TENANT TALK

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TOP TENANTS ROOT FOR DWC’S LOGISTICS DISTRICT

LOGISTICS NEWS MIDDLE EAST SPOKE TO A CROSS SECTION OF LEADING LEASEHOLDERS FOR THEIR TAKE ON WHAT TRIGGERED THEIR LOCATION OR RELOCATION TO IN DWC’S LOGISTICS DISTRICT AND TO ASSESS THEIR PROGRESS TO DATE

SSI SCHAEFER MIDDLE EAST AND AFRICA SSI Schaeffer has operated in the Middle East & Africa for over ten years with the Regional Head Offices located in Dubai, UAE and local offices in Johannesburg, South Africa and Jeddah, Kingdom of Saudi Arabia. To support its customers SSI Schaeffer has developed a network of more than 20 distributors in various countries – from Morocco, South Africa to Pakistan. Since its inception in 1937, SSI Schaeffer, with over 50 subsidiaries worldwide, has been an owner-operated, German family company.

Matthias Hoewer

Matthias Hoewer is General Manager SSI Schaefer Systems International DWC LLC since 2010.

He has been with SSI Schaefer since 2005 and is responsible for the Business Development of the Automation Division in MEA (Middle East, Africa).

He acquired his Master’s Degree in Information Technology and Logistics in 2004.

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When did you move to DWC’s Logistics District and what factors initiated that move?

SSI Schaefer committed as one of the first companies in 2008 to move to the then newly formed DWC. We completed our building in 2011 and moved in by August 2011. Our key motivation was the strategically excellent located DWC area between the port of Jebel Ali and the newly formed Al Maktoum International Airport.

Besides the upgrade to all our facilities compared to the previous company setup, we are now in a position to support our clients in the Freezone areas (DWC and JAFZA) promptly and without any delay. We have upgraded our communication systems to include state-of-the-art video conferencing facilities to be able to link in to our global network and conference setup. So both externally and internally we highly benefited from the move to DWC.

How easy was the transition to DWC’s Logistics District?

The transition was fairly easy for us.

Despite the early date in 2011, the support from the team at DWC was perfect and we had a very smooth transition from our old facilities in Al Quoz to DWC.

How would you characterize your relationship with DWC? Being one of the early tenants in DWC we built up a great relationship with the key decision makers in DWC. Both sides support each other very well in terms of business development by using our global network of key accounts in the Schaefer domain to support the ideas and objectives of DWC.

What is your assessment of DWC’s Logistics District facilities offerings and how have these empowered & streamlined your business?

For us it is vital to be close to our customers to provide the best possible service in terms of planning and project implementation. Especially in the last two years the infrastructure that has been developed has allowed us to grow our business beyond our expectations.

What benefits have you seen as a result of this relocation?

Please comment on the challenges encountered as well as your expansion plans?

Unfortunately I cannot disclose any further expansion plans at this point but the overall setup in DWC will allow us to grow our businesses at least until 2018.

Challenges for our staff were mainly related to public transport to DWC in the early days but these have been fully resolved now with more companies opening their businesses in DWC.

Logistics News ME | April 2015 | 29

TENANT TALK

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HELLMANN CALIPAR HEALTHCARE LOGISTICS DWC is a strategic joint venture between Hellman Worldwide Logistics from Germany and Calipar Integrated Services DWC from India. Hellman Calipar Healthcare Logistics, which presents a unique concept of healthcare logistics services using Dubai as the hub, has been offering its range of services to support secure distribution of its customer’s specialized pharmaceutical and healthcare products across the region through its fully-equipped logistics center located at DWC.

How significant in the present-day context is Life Sciences Logistics and how have you evolved since your inception in DWC in June 2010?

The Life Sciences Logistics has become ever important, with the growing population in the region, the increased life expectancy, ageing population, Government incentives aimed at boosting local production and establishing free zones and Mandatory Health Insurance becoming in place across the GCC. With all this the need for a good quality product emerged. After a difficult start up, when Life Science Logistics was a complete new concept to the logistics industry, the Customs Department and the Ministry of Health in the region, we have been able, with these partners, to develop a sustainable solution allowing for continuous developing and upgrading our solution with every new customer.

Ultimately this has resulted in a sustainable model providing tailor made solutions to a wide variety of customers.

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In 2014 we have completed the construction of our second facility, adjacent to the first facility, doubling our storage capacity.

How is Healthcare Logistics different from regular-generic logistics and what sets HCHL apart?

Dealing with Healthcare products differs in many ways from the regular logistics; due to the nature of the products all measures are aimed at ‘Patient Safety’ .

Complete route risk assessments per lane are conducted to validate the different routes a product travels. This includes assessing the different touch points in the supply chain, market trends as well as the facilities and means of transport used.

Products typically are temperature and highly time sensitive, have a limited shelflife and require a high level of Quality involvement and end to end visibility.

Next to this complete traceability on shipment, product and even batch level is required, to allow for early detection of

Eric ten Kate

Eric ten Kate is Director Healthcare (Middle East) at Hellmann Calipar Healthcare Logistics DWC-LLC. Based in Dubai Eric, heads the healthcare vertical in the Middle East.

He has built up his expertise in the field of supply chain and logistics. Prior to joining Hellmann Calipar Healthcare Logistics, he worked in the 3PL healthcare logistics in Europe where he was employed in a number of operational and commercial management positions in Specialty Chemicals, 3PL and express logistics.

Eric is building a strong healthcare solution in the Middle East through developing new logistics concepts in an increasingly demanding region by listening to customer needs whilst applying his operational and commercial experience to problem-solving.

possible derailed shipments. Supplier selection and supplier validation are required to mitigate the risk in terms of security. Furthermore staff handling Healthcare products should be aware of the type of products they are dealing with and therefore be qualified and trained to detect any irregularities.

HCHL, with its dedicated Healthcare facility provides a complete service offering to its customers, ranging from Inbound Clearance and Delivery, 15°C to 25°C to 2°to 8°C and even -/- 15°C to -/25°C storage, to Outbound distribution by any mode of transport.

SSI SCHAFER: ADVERTORIAL

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High Density Storage BUILD SMALLER AND/ OR DOUBLE THE STORAGE CAPACITY Particularly in temperature-controlled warehouses, using high-density Mobile Racking allows you to use a smaller building footprint. The smaller building footprint results in a real estate reduction of 45% while offering about the same amount of pallet positions as conventional warehouses with selective racking.

If the goal is to increase the number of pallet positions, or to gain another client and consequently double revenue, Mobile Racking is the perfect solution to increase the number of pallet positions in the same footprint by up to 100%. The result: lower construction costs, lower operating costs, and increased profits.

When designed correctly, Mobile Racking from SSI SCHÄFER is not only a better high-density storage solution, it will also significantly improve your warehouse efficiency, your throughput, and your profitability.

In today’s economy, funding for new construction and building expansion is not as readily available. Project and budget approvals require a long, drawn out process here, too. As a consequence, supply chain and logistics managers have to find better ways to increase storage capacity within the existing building walls at a fraction of the cost of new construction. That is where Mobile Racking can make a huge impact, doubling the amount of pallet position in the same existing area.

Mobile Pallet racking systems are selective racking mounted on heavy duty bases, which are electrically driven on tracks mounted into floor slab. Every SSI SCHÄFER mobile racking system is equipped with modern safety controls which meet all International safety standards. A modular design concept allows the system to be designed specifically according to your preferences and requirements. By converting racking aisles into useable space for logistics and other purposes, mobile racking systems can create up to 100% increase in available pallet locations, offering a cost effective storage solution.

Let’s take a look on how your warehouse or distribution center can benefit from Mobile Racking technology: 1. To start, Mobile Racking should almost never be used for super-fast ‘A’ movers, but rather for medium-fast ‘B’ and slower ‘C’ movers. Remember the Pareto Principle which applies to warehouse and distribution center operations: 80% of inventory turn-over comes from 20% of SKUs (‘A’ movers), but 20% of

inventory turn-over comes from 80% of SKUs requiring much more space and pallet locations (number of ‘B’ and ‘C’ movers is always growing). A typical warehouse designed by SSI Schäfer would therefore use conventional pallet racking for the faster ‘A’ movers and Mobile Racking for the ‘B’ and ‘C’ movers. Supply chain managers will reallocate storage locations to the faster moving areas of the warehouse, typically closest to the loading docks, to adjust for changing inventory demand and sales.

2. Another misunderstanding is that Mobile Racking allows only one picking aisle to be open and operational at any given time, therefore the misperception that the replenishment and picking processes are slowed. But quite the opposite is the case with Mobile Racking. Modern Mobile Racking storage designs include as many aisles as the pallet through-put requires (pallets in and out/ hour). Multiple independent Mobile Racking zones allow multiple lift trucks to operate at the same time, ensuring that the desired throughput rate and the highest possible warehouse efficiency are reached.

3. If the warehouse business model provides that full pallets are moved in and out during the day shift, but the warehouse switches to a case and split-case picking operation during the second or third shifts, the answer again is very simple. With the push of a button, all carriages move outward and lock in place to create picking aisles so that pickers with pallet jacks or picking carts can safely enter the aisles to retrieve product.

Logistics News ME | April 2015 | 31

TENANT TALK

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WE WERE AMONG THE FIRST TO START OPERATIONS IN DWC’S LOGISTICS DISTRICT. THE ATTRACTION TO DWC WERE THE LICENSING INCENTIVES, LONGER LEASE PERIODS, LARGER PLOTS OF LAND AND BEING AT THE EPICENTER OF WHAT IS TO BECOME THE LARGEST AIRPORT IN THE WORLD

Abhishek Ajay Shah

RSA LOGISTICS, a Dubai World Central-headquartered modern integrated 3rd party logistics (3PL) provider, was registered in 2007, and commenced its operations in 2009.

Today it has a major presence in the UAE and provides multi-disciplinary logistics services for companies across several industry verticals.

Abhishek Ajay Shah is Managing Director at RSA Logistics & a member of the board at the newly launched chemical logistics JV RSA-TALKE. He manages the entire team across RSA Logistics and is responsible for the overall planning and execution of corporate strategies.

In just over five years in the position the company has seen multiple folds of growth.

Shah is responsible for strategic planning, financial reporting, business development and regional / global expansion. He oversees the brand development across different levels, working in several areas covering operations, sales and development, and technology. Shah holds a degree in MEng Civil Engineering with Business Management from Warwick University.

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RSA Logistics offers a complete 3PL package ranging from distribution, transportation, warehousing and supply chain management as well as International freight services based on International single & multi-modal freight-forwarding that includes air, land and sea , multimodal freight for a wide range of customers.

When did you move to DWC’s Logistics District and what factors initiated that move?

RSA Logistics first thought of the move right at the inception of the project in 2005, signed our first lease in 2007 and began operations in March 2009. We were among the first to start operations in DWC’s Logistics district. The attraction to DWC were the licensing incentives, longer lease periods, larger plots of land and being at the epic center of what is to become the largest airport in the world.

What is your assessment of DWC’s Logistics District facilities offerings

and how have these empowered / streamlined your business?

DWC was a start-up government entity when we started our discussions and processes with them. Thus we see ourselves learning and growing up with the DWC authorities. This has made us feel much more a part of the process to improve and given suggestions for improvements. The infrastructure can be described as state of the art as it is new and cutting edge.

DWC logistics district is connected via a dedicated logistics corridor, Jebel Ali Port, the Jebel Ali Free Zone and Dubai World Central form a single custombonded Free Zone environment. DWC has a multimodal logistics platform which has a direct access to the UAE’s main trans-emirates highways, the future Etihad Rail network, Al Maktoum international airport and Jebel Ali port, providing unmatched speed, connectivity and flexibility which helps us streamlined our business.

How would you characterize your relationship with DWC? We have a strong and healthy relationship with DWC, since our inception during our entire process of submission of papers till its completion has been a smooth work process with the help of the DWC team who are efficient and fast in the entire process of setting up our business.

TENANT TALK

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Esmail Salim

TOTAL FREIGHT INTERNATIONAL

Esmail Salim, the Founder and Chairman of Total Freight International (TFI), is a veteran in the industry having started his career in logistics over 40 years ago.

He currently also serves as a Director in the World Freight Group, overseeing the Middle East and Africa regions.

When did you move to DWC’s Logistics District and what factors initiated that move?

We inaugurated our logistics facility on 25th November 2014. Our primary motive for moving into DWC was to expand our offerings to include 3PL services. When you take into account the fact that it is a customs-

bonded bridge away from the Jebel Ali Port; that the road infrastructure is well connected to the UAE Mainland; and that it will soon be home to the largest airport terminal in the world, the decision was a no-brainer.

DWC will be home to the future of logistics, and we see tremendous potential here.

How easy was the transition to DWC’s Logistics District?

The move was quite smooth thanks to the supportive and pro-business approach of the DWC authorities. The distance from the city has been a bit of a challenge. However, as the area develops, it is only a matter of time

before this becomes the new hub of the emirate.

What is your assessment of DWC’s Logistics District facilities offerings and how have these empowered & streamlined your business?

Having a base at DWC has improved our Air freight operations for cargo moving out and into DWC. The proximity to Jebel Ali port has made the handling of Sea-Air cargo (one of our specialties) seamless. The gates and road access are very strategically placed, granting an extremely well connected road infrastructure into the UAE mainland. Clearly, a lot of thought went into planning of this space.

What benefits have you seen as a result of this relocation?

With this facility, we’ve added warehousing, storage & distribution, thirdparty logistics, and value added services to TFI’s growing list of core activities. We’re now able to provide true end-to-end logistics solutions, and our customers have been the main benefactors of this.

Maintaining Product Integrity throughout the Supply Chain

COMPLIANT | TRANSPARENT | INNOVATIVE

Moving Life Forward

Hellmann Calipar Healthcare Logistics DWC-LLC

PO Box 17076 Dubai, United Arab Emirates

Phone: +971 4 8994111

Website: http://www.hellman.net

Logistics News ME | April 2015 | 33

TENANT TALK

DWC LOGISTICS DISTRICT IS STILL NEW AND DEVELOPING AT A VERY FAST PACE. THE FACILITIES OFFERED ARE UP TO THE MARK AND THE CONVENIENT ACCESS TO BOTH THE AIRPORT & THE SEA PORT (USING THE LOGISTICS CORRIDOR) HAS MADE OUR MOVEMENT FROM ONE PORT TO THE OTHER EASY AND SMOOTH

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When did you move to DWC’s Logistics District and what factors initiated that move?

SEAIR first established its office in the DWC Logistics District in March 2014. The main factors that initiated the move were the strategic location of the Logistics Districts which is connected to both the new Al Maktoum International Airport which is inside DWC and the Jebel Ali Sea Port which is connected to a route called the Logistics Corridor. Also the fact that the World Expo 2020 site will be set-up inside DWC. How easy was the transition to DWC’s Logistics District?

It was a pleasant surprise to see the simplicity in the process and the requirements to setup a Logistics Company in the Logistics District. The team at DWC made the process easy and they were very professional. I would say that this was & is the best choice for a Freezone company. In short the entire process was hassle-free.

What is your assessment of DWC’s Logistics District facilities offerings and how have these empowered & streamlined your business?

DWC Logistics District is still new and developing at a very fast pace. The facilities offered are up to the mark and the convenient access to both the Airport & the Sea Port (using the Logistics Corridor) has made our movement from one port to the other easy and smooth.

The facilities offered are excellent but for each service there is a cost factor involved.

This should be minimized to encourage more investors setting up their offices in DWC district.

What benefits have you seen as a result of this relocation?

Not much. Except that DWC

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is near to Jebel Ali port which facilitates our operational work process.

Major movements of Cargo happens through the Jebel Ali port and the ease of access to the port has been a big advantage for our team to be able to visit the port on regular basis for any sort of requirements. Also the travel time from our office to Jebel Ali or to the New Maktoum airport has reduced considerably thereby increasing our productivity.

How would you characterize your relationship with DWC? We have a great relationship with the Sales, Admin & licensing Team at DWC. We are recognized by our name & company name whenever we approach them for additional requests or applications.

DWC is one place where everyone from the Administration staff to the Accounts team all the way up to the management & division directors have been approachable and very supportive in assisting us whenever needed.

Please comment on the challenges encountered as well as your expansion plans in DWC? The main challenge was deciding whether DWC Logistics District would be the right place for our Logistics Company.

We started off with a small furnished office in the Business Center of DWC to first ensure that we were making the right choice.

After a few months we were positive and extended stay in DWC. Subsequently, we decided to move into a permanent office in DWC. We have already expanded since then and took up two different offices in the DWC and soon are planning to set up our third Office.

WORK AMBIENCE

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David Ross

FEDEX

EXPRESS RANKED ‘GREAT PLACE TO WORK’

FedEx Express has been officially ranked 14th among the Top 15 companies to work for in the UAE. The ranking of the nation’s top 15 ‘Great Places to Work’ is based on the confidential feedback of employees and an audit of the

management process by the ‘Great Place to Work’ Institute, during its annual study of workplace excellence.

“I am delighted that FedEx Express is once again recognized as a great place to work. The award is a testament to the organization’s unique culture and rewarding workplace environment, where our team members are at the core of everything we do,” stated David Ross, Regional President, FedEx Express Middle East, Indian Subcontinent and Africa.

The success of FedEx creating and maintaining an environment that brings out the best in its most

important resource, its people, has allowed the company to maintain its reputation as a great place to work in many countries across the world.

FedEx, the world’s largest express transportation company, operates in more than 220 countries and territories.

The company has a global workforce of over 300,000 employees and reported revenues of US$ 47 billion in 2014. Great Place to Work® Institute is a global research, consulting and training firm that helps organizations identify, create and sustain great workplaces through the development of high-trust workplace cultures.

Logistics News ME | April 2015 | 35

DWC TENANT

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MAERSK TRAINING TO OPEN FIRST ME FACILITY AT DWC MAERSK TRAINING, PART OF THE DENMARK-BASED MAERSK GROUP AND A LEADING PROVIDER OF SPECIALIST TRAINING AND LEARNING COURSES IN THE ENERGY AND MARITIME SECTORS, HAS ANNOUNCED ITS DECISION TO SET UP ITS FIRST STATE-OF-THE-ART TRAINING FACILITY IN THE MIDDLE EAST AT DUBAI WORLD CENTRAL. THE NEW MAERSK TRAINING CENTER WILL OFFER COMPANIES IN THE MIDDLE EAST, AFRICA AND ASIA’S OFFSHORE INDUSTRIES, PARTICULARLY THE OIL & GAS AND MARITIME SECTORS. LOCATED AT DWC’S BUSINESS PARK ENCLAVE, THE FACILITY WILL DEPLOY A COMBINATION OF CLASSROOMBASED TECHNIQUES AND SIMULATOR-BASED INSTRUCTION. THE CENTER IS SCHEDULED TO BEGIN ITS FIRST TRAINING SESSION IN Q3 OF 2015.

CLAUS BIHL, CEO, MAERSK TRAINING, STATED: “OUR NEW CENTER AT DUBAI WORLD CENTRAL IS AN IMPORTANT EXPANSION FOR MAERSK TRAINING. IT WILL HELP US TAP INTO ONE OF THE MOST ECONOMICALLY VIBRANT REGIONS IN THE WORLD AND SUPPORT OUR GLOBAL AND REGIONAL CUSTOMERS. WE HAVE INVESTED SIGNIFICANTLY INTO MAKING THE MAERSK TRAINING DWC CENTER A WORLD-CLASS TRAINING FACILITY. THIS DECISION WAS ALSO WELCOMED BY PAOLO SERRA, VICE PRESIDENT OF BUSINESS PARK, DWC, WHO WELCOMED MAERSK TRAINING TO THE DWC BUSINESS COMMUNITY. ESTABLISHED IN 1978, MAERSK TRAINING HAS GROWN FROM PROVIDING TRAINING FOR COMPANIES WITHIN THE MAERSK GROUP TO SERVICING INDIVIDUAL STUDENTS AS WELL AS MAJOR ORGANIZATIONS WITHIN THE GLOBAL MARITIME, WIND AND OIL & ENERGY SECTORS.

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DWC TENANT

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LUFTHANSA TECHNIK TO DEVELOP FACILITY AT DWC LUFTHANSA TECHNIK MIDDLE EAST, A LEADING MANUFACTURER AND INDEPENDENT PROVIDER OF TECHNICAL SERVICES FOR THE AVIATION INDUSTRY, WILL DEVELOP A NEW OPERATIONAL FACILITY AT DUBAI WORLD CENTRAL (DWC) BY THE FOURTH QUARTER OF 2015. UNDER THE AGREEMENT, LUFTHANSA TECHNIK BECOMES THE ANCHOR TENANT OF THE ‘AEROSPACE SUPPLY CHAIN FACILITIES’ THAT DWC IS SHAPING WITHIN ITS AVIATION DISTRICT. COMMENTING ON LUFTHANSA TECHNIK’S INTEREST TO DEVELOP FACILITIES AT DWC, TAHNOON SAIF, VICE PRESIDENT OF THE AVIATION DISTRICT, COMMENTED: “DUBAI WORLD CENTRAL IS PLEASED TO ENGAGE WITH LUFTHANSA TECHNIK. THIS FALLS APTLY IN LINE WITH OUR STRATEGIC VISION TO BUILD A COMPREHENSIVE ECOSYSTEM DEDICATED TO THE AVIATION INDUSTRY.” SHARING DETAILS OF THE NEW PROJECT, ZIAD AL HAZMI, CEO, LUFTHANSA TECHNIK MIDDLE EAST SERVICES, NOTED: “OUR PRESENCE WILL PUT US IN PRIME POSITION AS A LEADER IN THE AEROSPACE SUPPLY CHAIN SPHERE, AND HELP US ENHANCE VALUE FOR OUR GROWING LIST OF CUSTOMERS THROUGH OFFERING OPTIMIZED TECHNICAL SERVICES, SUCH AS OUR ARC® PORTFOLIO WHICH INCLUDES AIRCRAFT MAINTENANCE, REPAIR AND OVERHAUL (MRO) SERVICES.” THE MRO SECTOR ASSOCIATED WITH THE AVIATION INDUSTRY OFFERS A WIDE SPECTRUM OF SUPPORT SERVICES RELATED BUT NOT LIMITED TO THE MAINTENANCE OF THE LANDING GEAR, AVIONICS, HYDRAULICS AND BRAKING SYSTEMS, AS WELL AS SPECIALIZED FUNCTIONS SUCH AS AIRCRAFT PAINTING, PLUMBING, SEAT AND UPHOLSTERY, NON-DESTRUCTIVE TESTING AND PLASTICS REPAIR. AEROSPACE SUPPLY CHAIN FACILITIES IS BEING DEVELOPED BY THE DWC AVIATION DISTRICT, AND WILL INCLUDE THREE DEVELOPMENTS SPREAD ACROSS 45,000 SQUARE METERS. ESTIMATED TO COST US$ 33 MILLION, THE PROJECT WILL FEATURE A MULTI-PURPOSE BUILDING FOR TENANTS THAT ARE A PART OF THE AEROSPACE SUPPLY CHAIN.

Logistics News ME | April 2015 | 37

ROBOTS / AUTOMATION

Swisslog, KUKA

to present new human-robot workstation

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ONE OF THE HIGHLIGHTS OF THE NEARLY 1 000 M² BOOTH IS A COMBINED HUMAN-ROBOT WORKSTATION FOR ORDER FULFILLMENT PICKING OR FOR THE AUTOMATED SUPPLY OF INDUSTRIAL ASSEMBLY LINE COMPONENTS

For the first time, Swisslog and KUKA, a German manufacturer of industrial robots and solutions for factory automation, will exhibit jointly at Hannover Messe 2015 in mid-April 2015.

Here they will together showcase the first results of their recent collaboration as one Automation Powerhouse.

One of the highlights of the nearly 1 000 m² booth is a combined human-robot workstation for order fulfillment picking or for the automated supply of industrial assembly line components.

This revolutionary Industry 4.0 technology concept is based on the emerging need for

humans and robots to interact and collaborate in intralogistics applications.

One of the key exhibits is a newly developed human-robot workstation named Automated Item Pick. It is based on KUKA’s LBR, the world’s first production-ready collaborative lightweight robot, which turns Swisslog’s fully automated CarryPick and AutoStore goods-to-person picking solutions into interactive human-robot workstations.

One distinctive feature is that the order bins at the pick station are serviced by a human and the robot’s grippers at the

ROBOTS / AUTOMATION

.................................................................................................................................................. same time, without the need for a barrier or fence between man and machine. Using imaging technologies and LBR advanced joint torque sensors, Swisslog and KUKA have created a forward-thinking concept that is perfectly suited for industrial applications.

Swisslog’s Automated Item Pick workstation is an intelligent enhancement of the Click&Pick solution portfolio; a modular warehouse logistics concept that offers flexible scalability as well as high throughput, for storing and picking light goods.

“For Swisslog, Automated Item Pick is an important milestone on our journey into a cyber-physical future – one that combines traditional automation technologies with the technical achievements of the IT world,” commented Peter Hettich, CEO at Swisslog.

“As part of our Industry 4.0 concept, we aim to increase the availability of our systems and eliminate potential error sources from intralogistics processes early on.

:

www.seair.me info@seair.me

Sea,Air & Road Assistance

Dubai World Central T: 9714 - 8879213 F: 9714 - 8879734

Solutions : Handling & Rentals : Transport & Clearance

EVERYWHERE..EVERYTIME

Logistics News ME | April 2015 | 39

CASE STUDY: EHRHARDT + PARTNER

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E+P SWEETENS HARIBO’S WAREHOUSE

EHRHARDT + PARTNER’S LFS WAREHOUSING MANAGEMENT SYSTEMS, ADOPTED BY AND CUSTOMIZED FOR GERMAN CONFECTIONERY COMPANY HARIBO, IS SPREADING SWEET CHEER FOR THE LATTER’S WAREHOUSING AND DISTRIBUTION PROCEDURES

H

ighly automated handling of gummy bears, fruit gums, licorices and other sweets: The world-renowned sweets manufacturer Haribo GmbH & Co. KG implemented Ehrhardt + Partner (E+P) warehouse management system LFS in its newly constructed, automatic high rack warehouse system at the Solingen site.

The use of LFS allows the global active fruit gum manufacturer to fully automate a large portion of the warehouse processes and ensures seamless batch tracking. In addition to the necessary software, E+P also provided Haribo with the necessary hardware: a data transmission system, terminals for mobile data recording (MDEs) and different printers and

40 | Logistics News ME | April 2015

the integration of the data transmission system, including radio broadcasting in the warehouse from one source.

A chain of all the gold bears produced in one year linked together would go around the world four times. Worldwide, 100 million gold bears are produced daily, some of which are produced in Solingen, North Rhine Westphalia. The high rack warehouse offers 11,400 pallet storage spaces in a double-deep storage system and 1,200 additional pallet spaces in the goods handling department. This new construction is part of a strategic optimization of the Solingen site. It provides for the most comprehensive automation of the processes possible in the warehouse. In

addition to finished goods, raw, auxiliary and operating materials, so-called RHB items such as labels, foils, ingredients and aromas are stored and provided for production.

THE CHALLENGES Restructuring the logistic warehouse processes Seamless batch tracking Usability in the group of companies as well as a WMS that can be implemented across countries and languages.

THE SOLUTIONS Construction of a new high rack warehouse Introduction of the LFS warehouse management system

CASE STUDY: EHRHARDT + PARTNER

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THE RESULTS Reduction of the error rate to nearly zero Synergy effects due to the usability of LFS in several languages Comprehensive batch tracking Highest level of process automation

half do not work at the five German sites.

“The option of introducing the warehouse management system at other sites in other countries or language versions in the future and utilizing the resulting synergy effects was very important to us,” reports Uwe Weber, Director of German Logistics at Haribo. The LFS warehouse management system can be used throughout the group of companies and across countries and languages. “With several other warehouse management systems, we could have covered our processes at the Solingen site, but they would have only been usable on a sitespecific basis,” added Weber.

“By implementing the LFS warehouse management system, the highest level of process automation was implemented at the Solingen Haribo warehouse,” remarked Marco Ehrhardt, Managing Director of Ehrhardt + Partner. In addition to LFS, the warehouse experts at Haribo integrated a data transmission system and were responsible for radio broadcasting in the warehouse. In addition, E+P also provided the fruit gum manufacturer twelve MDEs and a total of 17 printers.

PROVIDER SELECTION The ability to use the system throughout the group of companies was high priority for Haribo when selecting the right warehouse management software. Of the 6,000 employees,

FROM GOODS RECEIPT TO SHIPPING LFS controls all movements in the warehouse: from goods receiving to outgoing goods. The Haribo employees merely have to confirm incoming and outgoing goods via the MDE.

SUMMARY OF BENEFITS INTRODUCTION OF THE LFS WAREHOUSE MANAGEMENT SYSTEM INTRODUCTION OF THE DATA TRANSMISSION SYSTEM SYNERGY EFFECTS DUE TO THE USE OF LFS IN SEVERAL LANGUAGES REDUCTION OF THE ERROR RATE TO NEARLY ZERO COMPREHENSIVE BATCH TRACKING THE HIGHEST LEVEL OF PROCESS AUTOMATION

Introduction of the data transmission system

For outgoing goods, LFS also ensures that the pallets are sent out in the right order and are made available on the right conveyors. To this end, the warehouse management system handles the functions of the material flow computer to ensure the pallets do not pass each other unintentionally. Due to the complexity of the processes, the LFS has to handle parts of the material flow control more frequently.

“Our software developers have comprehensive experience with system controls from a wide range of providers,” affirmed Marco Ehrhardt. The subsequent loading of the pallets from the supply conveyors at Haribo is supported by optical signals in the form of lamps on every conveyor. This controls the system in sync with the loading dialog. Prior to loading, the bar codes on the provided pallets are scanned one last time. “This way, the error rate for delivered shipments is nearly zero.” These highly automated processes allow Haribo to completely turn over the high rack warehouse, with its nearly 630 different items, twice per month.

HARIBO GMBH & CO. KG Company headquarters in Bonn, Germany Founded in 1920 6,000 employees worldwide including 3,000 in Germany 15 production plants throughout Europe

Logistics News ME | April 2015 | 41

INTERVIEW EN PASSANT

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SPANISH LSP SEEKS MIDDLE EAST OPPORTUNITIES GLOBAL STEEL & METAL LOGISTICS SERVICES PROVIDER HEAVYMOVEMENT IS MAKING NEW FORAYS AND SEEKING NEW PASTURES IN THE MIDDLE EAST

H

eadquartered in the capital city of Barcelona in Spain’s industrial Catalonia region, HeavyMovement is a provider of logistics services and specializes in handling and moving heavy and high volume products for the steel, metals and chemicals industries. Special operations include Scrap Yard Management; cutting & transporting billets; Warehouse Management; metal recoveries &

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transportation; scrap screening; loading & unloading vessels and wagons; slag recovery& transportation; lancing operations and smelter operations.

HeavyMovement began working with the CELSA Group in Barcelona in 2002 and specializes in providing ‘in-situ’ (spot) logistics services for internal processes.

HeavyMovement’s portfolio of clients comprise some of the largest melt-shops and

rolling mills in Spain, Poland, UK, Norway, France, Portugal, Italy, Perú, Chile and Morocco.

HeavyMovement’s principal shareholders include Llinas Hijos, a company a company with over five decades of specialization in the forklift transportation business and renowned multimodal logistics operator Setram.

Logistics News Middle East spoke exclusively to Ivan Bailach, Deputy

INTERVIEW EN PASSANT

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WE WERE HERE IN THE MIDDLE EAST TO INTRODUCE HEAVYMOVEMENT. WE ARE NOT JUST LOOKING AT THE SHORT TERM, WE ARE HERE FOR THE LONG HAUL

Ivan Bailach

Managing Director & Head of Business Development, HeavyMovement at the Dubai offices of Spain’s Ministry of Economy & Foreign Trade, whilst on a recent official visit to the GCC and the wider MENA region to explore and forge business partnership prospects.

Please give us a brief profile of HeavyMovement, its origins and its corporate journey thus far?

HeavyMovement’s main business unit works as a services provider for the outsourced operations of the metal industry. We manage multi-year contracts for the metal industry, overseeing the outsourced processes in terms of quality, safety, costs and productivity through investing in the right machinery, attachments, hiring the right people, training staff to perform optimally and delivering excellence services.

Explain why you are here in the UAE on your first visit to the region & who is your intended clientele and who have you been meeting in the course of your visit?

We are in the region for introducing our company to those industries that are outsourcing or will outsource to a specialist services provider like us their non-core business operations. In this first trip we have been focused in the metal industry in Qatar and UAE, that is steel, aluminum and copper.

We decided to explore this market for several reasons. The metal industry has an important presence in the region and we think there is still room to develop the noncore business operations that is largely outsourced. Additionally, the trend in the region is pointing in this direction, looking for better performances in terms of efficiency, quality and safety thereby allowing manufacturers to focus their industry resources in their own core competences and outsourcing the rest. UAE, Saudi Arabia, Oman and Qatar among others are also open economies that provide

opportunities that could make it easy for us to conduct our operations in the region from these locations.

What has been the response thus far?

We were here in the Middle East to introduce HeavyMovement. We are not just looking at the short term, we are here for the long haul. Interestingly, we have had very good feedback from several companies, with some potential projects and we will be here again in April of this year.

Do you plan to set up a presence in the region?

Sure, we need to. If we get any contract we need to set up a new company in the region.

That means hiring locally the managers and workers and investing for buying the right equipment to run our customers operations.

What service capabilities / expertise can HeavyMovement offer its potential clients in the region?

HeavyMovement processes focus on innovation and creativity, finding the way to perform operations more efficiently and solving current or future problems of our customers. HeavyMovement has a long relationship with several machinery and attachment manufacturers, engineering firms and workshops. We have vast expertise in the steel industry, we have good knowledge about customer requirements and we have specific know how and understanding of the best practices in the business.

If I have to define HeavyMovement in three words it is Innovation, Technology and Know-how.

What potential do you foresee for HeavyMovement in the region?

There is a current need of new specialized suppliers for the outsourced operations not only in the region but globally. We believe there is a huge potential for the Aluminum industry which has a strong foothold in the

Ivan Bailach joined HeavyMovement in 2005 as a Site Manager and was promoted to Chief Operating Officer a year later. In 2010 he launched the new department of Business Developing and was appointed Deputy Managing Director, leading a team of 350 people in Europe and South America with revenues of € 30 million.

His career began at AST Modular (Schneider Electric), after he had completed a degree in Industrial Engineering at Polytechnic University of Catalonia. He was hired

by HeavyMovement once finished a Supply Chain Management Master while doing a MBA. Later on, he made executives programs in IESE and Stanford University in the USA. He likes entrepreneurship, and as a hobby he is also an investor and mentor of web & mobile startups in Spain and in Africa.

Logistics News ME | April 2015 | 43

INTERVIEW EN PASSANT

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HEAVYMOVEMENT PROCESSES FOCUS ON INNOVATION AND CREATIVITY, FINDING THE WAY TO PERFORM OPERATIONS MORE EFFICIENTLY AND SOLVING CURRENT OR FUTURE PROBLEMS OF OUR CUSTOMERS

region. We are very buoyant about this region and foresee business coming our way soon.

What challenges confront HeavyMovement at home and in the region?

Our current challenge is to keep pace with the growth in business in terms of team development and financing, since the investments are relatively large. We are a family-owned business, not focus on growing too fast, we prefer to do it steadily and better.

How has HeavyMovement fared in 2014 and

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what is your outlook for 2015?

In 2014 as in the preceding years 2013 and 2012 our operations fare well. We obviously have to make big efforts in partnerships with our customers to maintain the growth momentum.

How is the outsourced metals logistics sector faring in Spain?

Regarding the outsourced logistics operations in the metal industry in Spain it looks like companies have started to speed-up the new tendering processes. The economic climate

and outlook in Spain now seems to be getting better compared the immediate past, there is a new surge of activity and many companies feel more comfortable now signing multi-year agreement contracts than before.

What are your goals for HeavyMovement in the region?

Our goals in the region are to start relationships with potential customers, trying to get or to start operations soon and to become the preferred partner for the outsourced operations in the metal industry in the medium and long-terms.

ROCKWELL ADVERTORIAL

Maturity Model

The Connected Enterprise

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In the ‘Internet of Things’ (IoT), almost every object can use embedded technology to gather and transmit information. A pill might perform medical analysis, a concrete highway may offer traffic guidance, and machinery on a factory floor can manage quality control and energy usage.

The accelerated connection of operations technology (OT) to information technology (IT) enables unprecedented collaboration across the enterprise, linking processes and facilities to suppliers and customers in new ways. Manufacturers, industrial operators and Original Equipment Manufacturers (OEMs) can take advantage of real-time decisionmaking that drives profitability — but they also face new challenges in securing the data and infrastructure that underlies that opportunity.

A new path to improved productivity The rapid convergence of OT and IT — thanks to the proliferation and affordability of plantfloor Ethernet and smart devices, powerful local computing solutions, and multiple network technologies merging into one — is transforming information into insight. This gives decision-makers across the enterprise new visibility into operations — and new opportunities to make them better in response to: • Internal measures: Real-time monitoring and sharing of key performance indicators (KPIs) so that staff — senior executives down through frontline employees — can identify problems and resolve issues before they escalate or even occur. You cannot improve what you don’t measure.

• External business activities: Incorporate customer-demand information and / or supplier performance data (late deliveries, outof-stocks) as they happen to trigger revised production scheduling, staffing changes, procurement alternatives and other consequences.

• Market changes: Supply-chain planners and purchasing managers now rely on an array of vendors from around the world, complicating management of lead times, quality, and cost control (additional staff time to work with distant suppliers, inventory carrying costs,

obsolete materials due to overstocking and other factors) The connection of people and processes via technology allows executives and their continuous-improvement (CI) teams to implement real-time decision-support tools that boost productivity and profits — often without direct intervention or additional staff.

Especially critical is an examination of the people and processes that manage this framework — if a recognizable framework even exists. “We assess the readiness of an industrial company to change its processes and information architecture to leverage timelier and more accurate information that is available in the enterprise today,” affirms Keith Nosbusch, Chairman and CEO, Rockwell Automation.

“We often find that less effective legacy processes are in place, and that those processes and work flows have not been designed to take advantage of the OT / IT convergence and the significant benefits available from the connected enterprise. We then help industrial companies establish a strategy that systematically, sequentially, and securely integrates the technologies, processes, and people.”

Every manufacturer will enter and progress through the stages of the Connected Enterprise Maturity Model that is most appropriate for it, at a pace determined by its own needs, infrastructure, readiness, and resources. At Rockwell Automation we have worked with organizations that are in relatively advanced positions (as identified by the assessment), already leveraging their WDC and collaborating with suppliers; we also have worked with companies at the beginning of their OT / IT intelligence journeys. There are significant opportunities — and profits — for both.

At Rockwell Automation, with operations in 80 countries and 22,000 employees, it took several years to make the full progression through the model and to utilize information from the intelligent OT/IT operation effectively.

This progression required commitment from senior leadership, strategic investments, and collaboration with numerous stakeholders.

Based on that experience and codification of the five stages, manufacturers with which Rockwell Automation now works experience

Logistics News ME | April 2015 | 45

A S I A S U P P LY C H A I N I N S I G H T S

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M YA N M A R E N T E R S T H E WORLD OF GLOBAL TRADE

Mark Millar

MYANMAR, THE FORMER BURMA, HAS SHED ITS ISOLATIONIST IMAGE AND IS NOW STEADILY MOVING OUT OF THE SHADOWS AND INTO THE WORLD STAGE TOWARDS MODERNIZATION THANKS TO A REFORMIST REGIME IN POWER. THIS TRANSITION FROM MILITARY TO CIVILIAN RULE IS EXPECTED TO BRING A BONANZA TO SUPPLY CHAIN & LOGISTICS COMPANIES KEEN TO DO BUSINESS WITH THIS SOUTH EAST NATION ASIAN NATION — EDITOR After nearly 40 years of military rule and international isolation, Myanmar, also known as Burma, took its first steps into the modern world in 2010 when the first general elections were held. After some of set-backs along the road to full democracy, May 2013 signalled the country›s return to the world stage when President Obama welcomed Myanmar President Thein Sein to Washington DC. In just a few years, Myanmar has undergone a number of dramatic and positive changes, progressing from harsh rule under a military junta towards an open, democratic state.

Now accepted and welcomed by the global community, Myanmar last year assumed the role of Chair of ASEAN – the Association of South East Asian Nations.

Myanmar has a young and growing population of some 60 million. Literacy levels are high at 92.7 per cent, above the global average, and on par with countries such as Malta, Mexico and Peru. Thus Myanmar offers a huge workforce and in the medium term, the potential for a substantial consumer market. The combination of a generally literate population with low wage costs and a willingness to work to improve their economic position, provides the country with a valuable pool of human resource for its development.

Strict sanctions are now being replaced by development capital, partnerships and political support from some of the previous regime’s critics.

However Myanmar is one of the leastconnected in the world in terms of transportation, telecommunications and logistics. The road density is less than one fifth of the average in ASEAN countries.

The country’s inland waterways network, which is important for freight traffic, is underutilised due to an ageing fleet of vessels and neglected port facilities.

Myanmar has nine ports along the western and south-eastern coast of the country, with the principal maritime gateway, the Port of 46 | Logistics News ME | April 2015

Yangon, handling about 90% of the country’s cargo throughput; the other port facilities are mainly coastal ports with limited cargo handling capabilities.

With the expectation that Myanmar’s economy will now experience rapid growth – and with the potential to become a major exporter, especially of agriculture and food products - some observers are suggesting that Myanmar could become a trade hub on the crossroads of Asia.

Container port terminal developments and deep sea freight facilities will therefore play a large part in new infrastructure investments, even more so with three coastal areas being designated as Special Economic Zones (SEZs) for development – Dawei, Thilawa and Kyaukpyu.

Infrastructure challenges are gradually being addressed. In late 2014, the Asian Development Bank (ADB) approved a USD 100 million loan to Singapore-listed Yoma Strategic Holdings to improve infrastructure connectivity needed for sustainable economic growth in Myanmar.

The loan will be used to build telecommunication towers, develop cold storage logistics, modernize vehicle fleet leasing and related projects in transportation, distribution and logistics.

CONCLUSION Myanmar started its new journey to economic prosperity from a very low base.

The economy is one of the least developed in the world, following decades of stagnation, mismanagement and isolation.

However, while Myanmar is one of the world’s poorer nations—the effect of decades without an open and democratic regime—the country’s new status is gathering a great deal of interest from governments and investors from around the world. Its rich natural resources – both mineral and agricultural – and its location in the most dynamic part of the globe, make the country a highly attractive investment opportunity.

MARK MILLAR

Mark Millar leverages 30 years global business experience to provide independent and informed perspectives on supply chain strategies in Asia.

Renowned for delivering a knowledgeable, professional and memorable impact, Mark has completed over 375 speaking engagements at corporate events, client functions and industry conferences across 23 countries.

Author of ‘Global Supply Chain Ecosystems’ from Kogan Page, Mark is a Visiting Lecturer at Hong Kong Polytechnic University and is named in the 2014 USA listing of “Top Pros-toKnow in Supply Chain”.

Logistics News ME | April 2015 | 47

INDUSTRIAL CABLES

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Prysmian Cables A top industry brand label

PRYSMIAN CABLES ARE MUCH SOUGHT AFTER GLOBALLY IN BOTH THE ENERGY AND TELECOMMUNICATIONS SECTORS. LOGISTICS NEWS MIDDLE EAST WENT TO MIDDLE EAST ELECTRICITY EXHIBITION 2015 TO GET THE PRISM PERSPECTIVE ON THE PRYSMIAN GROUP

Its state-of-the-art power cables lie at the core of some of the most prominent, world-famous constructions like the landmark Burj Khalifa in Dubai, the Holy Mosque in Makkah and The Louvre Abu Dhabi Museum. The Milan, Italyheadquartered Prysmian Group, the resultant

Antonio Chiantore

48 | Logistics News ME | April 2015

of the merger of Prysmian and Draka, both leaders in cabling business, is the world leader and a name to reckon with in the energy and telecom cables and systems industry.

It manufactures and installs underground and submarine cables and systems for power

transmission and distribution and special cables for applications in many different industries and of medium and low voltage cables for the construction and infrastructure sectors. For the telecommunications industry, the Group manufactures cables and accessories for voice,

INDUSTRIAL CABLES

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WE HAVE THE EXPERTISE, PROVEN CAPABILITIES AND EXPERIENCE TO PROVIDE CUSTOMIZED, ADVANCED, HIGH-TECH CABLES THAT MEET THE MOST STRINGENT, DEMANDING CRITERIA

video and data transmission, offering a comprehensive range of optical fibres, optical and copper cables and connectivity systems.

The Prysmian Group has had a long presence in the Middle East for 34 years now and well-networked with a string of offices in Dubai & Abu Dhabi in the UAE as well as in Kuwait, Doha, Bahrain, Qatar and Saudi Arabia, the brand has had many accomplishments to date in the GCC including the first-ever submarine power transmission link serving Doha and the GCC Interconnection Authority (GCCIA) SaudiBahrain submarine interconnection and the 400 kV power transmission system for Abu Dhabi Transmission & Dispatch Company (TRANSCO) connecting the Bahia and Saadiyat Grid Stations in Abu Dhabi, which represents the largest 400 kV underground cable system in the region (triple circuit route of 25 km for a total of 230 km of extruded insulation cable) and the largest EHV (Extremely High Voltage) XLPE cable system in the world (in terms of contract value) ever awarded to a single supplier.

A Neapolitan, (from the Southern Italian city of Naples), the charismatic, ebullient, Antonio Chiantore is the General Manager, Prysmian Group Middle East and heads the company’s operations in the region. In an exclusive interview with Logistics News Middle East at the recent Middle East Electricity Exhibition 2015 held in Dubai, Chiantore spoke at length about the company’s forays in the region, its successes, its accomplishments and why the brand continued to be the supplier of choice for some of the most demanding & prestigious projects in the region.

Setting the scene for the wider usage of the versatile, multi-purpose Prysmian Cables in the two key, premier industrial verticals, Chiantore affirmed that the Group operates in the business of underground and submarine power transmission cables and systems, special cables for applications in many different industrial sectors and medium and low-voltage cables for

the construction and infrastructure industry for the energy sector as well as cables and accessories for the voice, video and data transmission industry, offering a complete range of optical fibres, optical and copper cables and connectivity systems for the Telecommunications sector.

“We have the expertise, proven capabilities and experience to provide customized, advanced, high-tech cables that meet the most stringent, demanding criteria,” asserted Chianatore, “which explains our involvement with elite, exclusive, high-value projects that demand strict, uncompromising standards of product quality,” he further remarked.

Chiantore also pointed out that competition was fierce in the region and that entailed even

Prysmian Group is world leader in the energy and telecom cables and systems industry. With sales of nearly €7 billion in 2014, some 19,000 employees across 50 countries and 89 plants, the Group is strongly positioned in high-tech markets and provides the widest range of products, services, technologies and know-how. The company is the world leader in the industry of hightechnology cables and systems for energy and 9,000 employees. harder efforts by Prysmian to stay ahead of the pack. “As in any business, a brand must stay competitive and we are no exception. Prysmian will not rest on its oars but will redouble its efforts to maintain its brand supremacy and leadership position.”

In reply to another question, Chiantore confirmed that the brand was looking to further increase its presence in the region given its long and reputable heritage in the region. “In the run-up to The Expo 2020 and in the light of the massive investment in infrastructural development in the region, we hope to expand in the region particularly in the energy-rich and

economically buoyant GCC countries,” emphasized Chiantore.

At Middle East Electricity (MEE) 2015 the Prysmian Group presented a wide range of cables and systems for the Oil, Gas and Petrochemical industry, but most of all including innovative specialties such as Drylam® and Airguard™ Cable System, FP® fire resistant cables, and power distribution cable solutions. The Group’s product portfolio at MEE 2015 focused on the full range of stateof-the-art power cables including HV and EHV underground and submarine cable systems for applications such as interconnections between power grids, links between natural or artificial islands and the mainland, and connections to, or between, offshore oil production facilities.

“Middle East Electricity 2015 represented a unique opportunity to present the Group’s activity in the GCC Region” reiterated Antonio Chiantore. “The Gulf region represents a key area for the Company’s expansion strategy, where the Group is already carrying out several major power cable projects especially in the Extra High Voltage underground and submarine cable systems market” he added.

These include the first-ever submarine power transmission link serving Doha and the GCCIA Saudi-Bahrain submarine interconnection and the 400 kV power transmission system for TRANSCO connecting the Bahia and Saadiyat Grid Stations in Abu Dhabi, which represents the largest 400 kV underground cable system in the region (triple circuit route of 25 km for a total of 230 km of extruded insulation cable) and the largest EHV XLPE cable system in the world (in terms of contract value) ever awarded to a single supplier.

Over the last year the Group has been awarded more new contracts in the UAE (Zakum offshore oil field electrification), in Qatar (Kahramaa Phase XI) and more recently in Kuwait (“MEW 06 Jaber Al Ahmed City” and “Jamal Abdel Nasser Street” projects).

At the Show, Prysmian showcased Drylam a new range of products for installation in

Logistics News ME | April 2015 | 49

INDUSTRIAL CABLES

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Antonio Chiantore

production systems, such as in the Oil & Gas industry. In Oil & Gas and most industrial environments a major problem is given by the permeability of cable plastic sheaths to humidity and aggressive chemicals, such as hydrocarbons and solvents as organic, acids and bases. Prysmian Group experts also held technical seminars about Prysmian solutions for Grid Optimization, Fire Performance and Life Safety Cables and Drylam® technology as an alternative to the lead technology.

50 | Logistics News ME | April 2015

So what is the Prysmian Cables’ message coming out of MEE 2015? “Our strong presence at the exhibition has provided us networking opportunities as we interface with our constituents, existing clientele and potential future customers and sends a solid message to the industry from this spring board. Prysmian is here for the long-haul and we continue to maintain and fortify our premier position in the cabling business growing from strength to strength,” reiterated Chiantore.

Antonio Chiantore, an Engineer, is the General Manager for Middle East at Prysmian Cables and Systems in Dubai.

Chiantore is head of the branches in the Middle East, overseeing business development, sales and marketing and engineering.

Earlier he was HV Business Manager at Prysmian Cavi e Sistemi Italia (Milan) where he dealt with business development, sales and marketing, engineering, EPCs and project management. He also served as Logistics Director for various HV and submarine factories in Eastleigh, UK; Pikkala, Finland; Gron, France; Delft, Holland; Arco Felice, Italy and Prysmian Powerlink in Milan.

Chiantore holds a degree in Electronics Engineering (specialization: telecommunication systems) from the University of Naples and an MBA and Strategic marketing executive program from SDA Bocconi, Milan.

CAT SCAN

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CATERPILL AR ENER GIZES REGION WITH NEW, POTENT POWER SOLUTIONS CATERPILLAR ALSO LAUNCHED ITS LARGEST RANGE OF ELECTRIC POWER PRODUCTS EVER – THE CAT COMPACT INTERNATIONAL PRODUCT LINE – FOR CUSTOMERS IN THE MIDDLE EAST, EUROPE, AFRICA, ASIA-PACIFIC, SOUTH AMERICA, AND THE COMMONWEALTH OF INDEPENDENT STATES (CIS)

Caterpillar launched a slew of electric power products ever at Middle East Electricity (MEE), March 2-4, 2015. CAT and its top regional dealer Mohamed Abdulrahman Al-Bahar showcased their unique combination of superior service and high-quality, completely integrated single-source power solutions such as UPS, generator set controls, and ATS solutions.

In addition the company also debuted the ready-to-run Cat diesel

generator sets with power outputs ranging from 6.8 to 220 kVA. The CAT Compact line is available in 32 model configurations in single-phase and three-phase, the Cat Compact International series offers four years of Extended Service Coverage (ESC) as a standard benefit for standby applications and as an option in prime-powered applications.

Logistics News ME | April 2015 | 51

CAT SCAN

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Engineer Ahmad Taha (L) with Doha Quarry officials

Powered by market-leading Cat diesel engines, Cat Compact International diesel generator sets offer a selection of weatherprotective and sound-attenuated enclosures.

Each enclosure is manufactured with corrosion-resistant galvanized steel components and finished with scratch- andrust-resistant powder-coated paint, along with high-grade thermoplastic components.

Caterpillar also provided registered guests

demonstrated the CAT Compact International product line, a new series of Cat diesel generator sets with power outputs ranging from 6.8 to 220 kVA for customers in Europe, the Middle East, Africa & globally.

Available in 32 model configurations in single-phase and three-phase, this new line of diesel generator sets greatly expands the Caterpillar range of products, providing reliable energy solutions for every kind of

sets are available in both 50 Hz and 60 Hz-rated models, providing customers with a wide choice of configurations and a variety of options. A modular design enables owners to easily upgrade to better meet specific needs or local requirements, and a smaller, more compact installation footprint targets, resulting in lower installation costs and less required space.

Powered by market-leading Cat diesel engines, Cat Compact International diesel

OUR CUSTOMERS HAVE COME TO APPRECIATE THE CATERPILLAR BRAND FOR ITS RELIABILITY & DURABILITY. THEY VALUE OUR DEPENDABILITY AND THE SUPPORT SERVICES WE RENDER THROUGH OUR EXTENSIVE SALES & POST-SALES SERVICE NETWORK IN THIS TERRITORY training for SpecSizer, a revolutionary tool for generator sizing. This web-based tool considers factors such as site conditions, load characteristics, transient performance and optimized algorithms to assist users in selecting optimum Cat generator sets.

CATERPILLAR LAUNCHES NEW RANGE OF DIESEL GENERATOR SETS Launching its largest range of electric power products ever, Caterpillar Inc. recently announced the introduction of and 52 | Logistics News ME | April 2015

business including the telecommunications, commercial and agriculture industries.

The Cat Compact International series offers four years of Extended Service Coverage (ESC) as a standard benefit for standby applications and as an option in primepowered applications.

ESC provides additional protection throughout and beyond the standard warranty period, and it is fully extendable and flexible to meet customers’ ongoing needs for a lifetime of support.

Cat Compact International diesel generator

generator sets deliver excellent fuel efficiency, product life and optimized running time from fuel tanks that provide a minimum of eight hours of performance at 100 percent of the rated load in prime applications. This allows operations to continue uninterrupted for an entire work shift or for the duration of most utility outages without power loss.

Speaking exclusively to Logistics News Middle East at MEE 2015, Robert Grivan, the visiting Belfast, Northern Ireland-based Sales Manager—Electric Power Retail Division for

CAT SCAN

.................................................................................................................................................. market leader in the Middle & Africa as elsewhere globally and our customers and partners can continue to rely on Caterpillar as a good and trusted partner,” he concluded.

Caterpillar offers a complete line of generator sets, containerized power modules and rental units to meet continuous or temporary needs. Cat generator sets can be customized with a wide variety of attachments, components and performance options tailored to fit specific applications.

Known for its worldwide product support, with parts and service available globally through their authorized service and dealer network, Caterpillar now offers a range of bundled repair solutions. These solutions are engineered for reliable, high-quality overhauls and include genuine, value-priced Cat parts backed by a one-year warranty. In addition, dealer technicians are trained to service every aspect of Cat equipment.

Founded in 1937, Mohamed Abdulrahman Al-Bahar is one of the leading business houses in the Arabian Gulf. Headquartered in Sharjah, United Arab Emirates, Al-Bahar represents Caterpillar in Bahrain, Kuwait, Qatar, United Arab Emirates, and Oman through its associate, Oasis Trading and Equipment Co. Al-Bahar offers customized solutions for integrated power system requirements; the region’s highest full-fill-first-pick availability of spare parts; and best-in-class service support Africa, & Middle East, Caterpillar affirmed that includes workshop and field service, that the region was very important & fabrication, maintenance and repair contracts, significant and one and training. of the fastest In recent years, growing for the Caterpillar and AlFOUNDED IN 1937, MOHAMED company which has Bahar have ABDULRAHMAN AL-BAHAR IS ONE had a long history completed a number OF THE LEADING BUSINESS and a deep-rooted of high-profile HOUSES IN THE ARABIAN GULF. presence here for customer HEADQUARTERED IN SHARJAH, gen-sets, power applications in the UNITED ARAB EMIRATES, ALsystems and power region including solutions.

“Our Dubai Metro, the BAHAR REPRESENTS CATERPILLAR customers have come American Hospital IN BAHRAIN, KUWAIT, QATAR, to appreciate the Dubai, NairobiUNITED ARAB EMIRATES, AND Caterpillar brand for headquartered Alan OMAN THROUGH ITS ASSOCIATE, its reliability & Dick East Africa and OASIS TRADING AND EQUIPMENT durability.

They Oman Mobile value our Telecommunications. dependability and Additionally, the support services we render through our Caterpillar opened a distribution center in extensive sales & post-sales service network in Dubai, making it even easier to service this territory,” he continued. customer needs within the region.

He also asserted that 2014 was a good year for Caterpillar in the region where the brand CAT’S REBUILD PROGRAM GIVES has grown in many segments and 2015 does TRUCKS A NEW LEASE OF LIFE look promising. “Our efforts both in time and CAT recently reconstructed yet another investments the region are beginning to bear quarry truck as part of its CAT Certified fruit and now paying dividends,” he stated. Power Train Programme for its customer “Caterpillar will always endeavour to be the Doha Quarry in the mountainous North-

Eastern Emirate of Fujairah.

Speaking exclusively to Logistics News Middle East, Engineer Ahmad Taha, Sr. Product Support Engineer—Service & Spare Parts, and a 4-year veteran with Mohamed Abdulrahman Al-Bahar—CAT, explained that because Caterpillar machines are so durable, reliable, sturdy and resilient, they can be given a second life thanks to the CAT Certified Rebuild Programme. “This entails the complete re-hauling, re-building and reassembling of the machine right here in our premises in Sharjah where the equipment is totally reconstructed just like the new replete with a 12-month warranty and original characteristics,” he remarked.

According to Engr. Taha, there are three categories of the CAT Certified Rebuild Programme. These are CCR (Caterpillar Certified Rebuild) involving the complete overhaul of the machine, bumper to bumper, which is a total rebuild approach, following a comprehensive Caterpillar rebuild programme, specifically written for every machine and followed to the letter. Taking this approach has numerous benefits to the customer, which culminates in a new machine serial number and a one-year warranty being awarded to the new machine.

We also have CPT (Caterpillar Certified Power Train) where a partial rebuild is made of the Power Train comprising the engine; transmission, axel and torque converter & CPT + which includes the Power Train and Hydraulic Systems.

The recent refurbishment of the Caterpillar 771D Highway Rock Quarry Truck for Doha Quarry falls into the final category. Five of these trucks have already been delivered to Doha Quarry, the sixth is going through the revamp process and work on the seventh will commence immediately after the sixth is delivered. “Doha Quarry like any of our other customer is always concerned about the downtime, their operations are critical and operations run for an average of 20 hours a day, so the onus of speedy repairs and efficiency rests with us. Generally it takes about 40 working days on an average to fix a machine the size of the 771D Truck, but it depends on the nature and extent of the work,” explained Engr. Taha.

The CPT programme also offers clients the economical option to fix their machines and reconvert them to almost new for a fraction of the cost of the new machine.

Trucks is also not the only equipment repaired and redone at the Al Bahar–CAT workshops—excavators, crushers, haulers, wheeled loaders, dumpers and loaders are also fixed.

Logistics News ME | April 2015 | 53

COMMERCIAL VEHICLES

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TATA MOTORS PREMIERES THE PRIMA IN UAE

TATA MOTORS, A FORMIDABLE NAME IN INDIA’S AUTOMOTIVE SECTOR, HAS SOUGHT TO MAKE INROADS INTO THE REGION’S THRIVING COMMERCIAL VEHICLES SECTOR WITH THE LAUNCH OF ITS TRADEMARK, PRIZED PRIMA CLASS TRUCKS. TATA PRIMA TRUCKS WILL SOON HIT AND TRAVERSE THE REGION’S HIGHWAYS

54 | Logistics News ME | April 2015

COMMERCIAL VEHICLES

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The tranquil, stationary, power-packed heavyweights, parked innocuously outside the scenic surroundings of Dubai’s majestic Meydan Hotel in Nadd Al Sheba on the eve of the official inaugural ceremonies to launch these behemoths, made for a deceptively serene picture. These will soon come alive and trundling the nation’s highways as Tata Motors unleashes these colossal commercial vehicles to serve the transportation industry in the region.

Tata Motors, India’s largest automobile manufacturer and among the top five commercial vehicle manufacturers in the world, recently launched two new nextgeneration heavy duty trucks from its Prima range of commercial vehicles in the UAE. Tata Motors, part of the Tata Group, a vast Indiaheadquartered global enterprise, launched the PRIMA 4438S (4X2) tractor head and Prima 4038K (6X4) Construction Tipper with it Dubai dealer-partner– United Diesel & Abu Dhabi dealer-partner, Dalma Motors.

The Prima Trucks, dubbed the World Smart Truck, was developed by the Tata Motors subsidiary – Tata Daewoo Commercial Vehicles (TDCV), Tata Motors conceived the award winning Tata PRIMA range, setting new benchmarks in the performance and design of a next-generation commercial vehicle, based on superior technology, optimum power, fuel efficiency and safety.

Built with technical inputs from across the world, the Tata PRIMA is based on an Italian cab design, engine technology from the US and Europe, gearbox expertise from Germany,

brand but also represented a new generation of sophisticated commercial vehicles by the Tata Group, the resultant of collaborative efforts and technology and expertise procured from across the globe.

“We have worked with our trusted partners in conceiving and assembling a world-class vehicle that gives customers considerable competitive advantages,” he explained.

Also speaking to Logistics News Middle East, RT Wasan, Head–International Business, Commercial Vehicles Business Unit, lauded

PRIMA commercial vehicles, boasts outstanding material and build quality, comfort, driving dynamics and economy, at the same time offering customers with of lowest cost of ownership. Equipped with strong aggregates and a robust chassis frame and suspension, the Tata PRIMA range meets the highest operating standards under extreme conditions.

Besides focusing on the mechanics of the vehicle, the uniqueness of the Tata PRIMA is that its cab which focuses on driver

WE HAVE WORKED WITH OUR TRUSTED PARTNERS IN CONCEIVING AND ASSEMBLING A WORLD-CLASS VEHICLE THAT GIVES CUSTOMERS CONSIDERABLE COMPETITIVE ADVANTAGES chassis frame know-how from Mexico, sheet metal dies from Japan and Korea, combining Swedish precision on a robotic weld line, hence is also referred to as the ‹World Truck’

by Tata Motors.

The Tata PRIMA with its power, sustainable speed, safety and reliability, best-inclass, aggregates, cabin features and comfort, was uncompromisingly designed for longdistance and prolonged hours of transportation.

Speaking exclusively to Logistics News Middle East, Ravindra Pisharody, the visiting Executive Director, Commercial Vehicles Business Unit, Tata Motors remarked that the launch of the Tata Prima brand in the UAE was a significant milestone and a groundbreaking event in Tata Motors’ continued expansion in this market and its foray in the GCC region. He further commented that the Tata Prima brand not only carried the impeccable credentials of the renowned Tata

the partnership with both United Diesel and Dalma Motors. “Both companies are major players in the automotive scene here in the UAE, with proven strengths and experience in the commercial vehicle market. Over the years, both these partnerships have set us on the path of excellent after sales customer support and geared us up to deliver a high quality experience and a unique value proposition to our customers in the UAE,” he affirmed.

A multiple award-winning range of trucks from Tata Motors, the Tata PRIMA is today available in different trims, including multiaxle trucks, tractor-trailers and tippers, apt for several applications, thus meeting varied enduser requirements. With the range extending up to 49 tonnes and engine options up to 380 bhp, the Tata Prima is an ideal work horse for movement of goods and material across distances and terrains, at the same time delivering efficiencies to a trucking business.

The new next-generation range of Tata

comfort. The cockpit of the Tata PRIMA is both functional and visually ergonomic with a separation in terms of the working and living area. The cabin is air-conditioned, with roomie occupants’ space, includes reclining seats, armrests, an adjustable steering system, a music system and Global Positioning System (GPS) as a standard feature.

The large, high-power Tata Motors delegation present on the occasion also included Prasanna K Chobe, Senior VP Manufacturing; Satish Borwankar, Executive Director–Quality; Mohan Kumar, Head Manufacturing at Jamshedpur Plant; Rudrarup Maitra, Head–Sales (International Business), Commercial Vehicles Business Unit; Ganesh Shetty, Head–Customer Care, International Business, Commercial Vehicles and Rajesh Khanna, Head–Product Management, International Business, Commercial Vehicles, among others.

Logistics News ME | April 2015 | 55

HYBRID GENERATOR SETS

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HIMOINSA, FAMCO POWER UP REGION LOGISTICS NEWS MIDDLE EAST MADE A SORTIE TO THE HIMOINSA PAVILION, THE LARGEST AT THE RECENTLY CONCLUDED 38TH MIDDLE EAST ELECTRICITY EXHIBITION 2015, TO SEE FIRSTHAND THE LEADING SPANISH GLOBAL BRAND’S HYBRID GENERATOR SETS AND TO GET THE LOWDOWN ON ITS FAMED LIGHTING TOWERS

HIMOINSA, founded in 1982 and headquartered in San Javier, Murcia, SouthEastern Spain, is a global, multinational company specializing in the manufacture and marketing of energy generation systems. This

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power brand is represented in the UAE, Qatar, Oman and Saudi Arabia by FAMCO, an Al Futtaim Company. Logistics News Middle East met exclusively with Guillermo Elum, Director, Sales & Marketing, Himoinsa (Spain) and

Terry McGuire, Regional General Manager, FAMCO International, Dubai, UAE for what the celebrated brand has to offer on its gen-sets and lighting towers.

“Himoinsa’s offers high-power energy

HYBRID GENERATOR SETS

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solutions specifically developed to meet the needs of the telecommunications sector,” stated Guillermo Elum as he spoke glowingly of the brand’s coveted products globally and in the Middle East. “The generator sets HPS 1500DCV and HPS 3000DCV are hybrid sets with a variable speed engine which guarantees fuel consumption savings of 40% compared to a standard generator set and 20% when compared with other fixed speed, hybrid gen-sets currently available in the market,” he added.

“We have designed hybrid gen-sets that can work efficiently without any kind of maintenance for four months. The standard generator sets operate 24X7 and require revisions and maintenance work every 41 days.

Our equipment operates on average for eight hours a day, so it requires maintenance every 125 days, once every four months,” continued Elum as he held forth on the advantages of Brand Himoinsa.

The variable speed, hybrid generator sets designed by Himoinsa therefore guarantee not only savings in terms of fuel but also with regards logistics, travel and refuelling, which

represents a considerable reduction in the investment return period,” he further McGuire.

Himoinsa has extensive experience in the telecommunications sector, having supplied equipment with power outputs ranging from 8 to 45KVA in the international market to wellknown companies in the sector such as Orange, Claro, Viva, Telefónica, Vodafone, China Telecom, Sri Lanka Telecom, Indosat, China Unicom, Camusat, Ericcson, France Telecom, Tunisiana, Airtel many other telecommunications giants.

“The Middle East is an important market for Himoinsa and we intend to increase our footprint in the region,” averred Terry McGuire. “We have plans to consolidate our operations in the UAE and Saudi Arabia and to make Himoinsa the preferred brand of choice,” he remarked.

Recently, HIMOINSA has signed agreements with leading Qatari telecommunications company Ooredoo to supply generator sets for their projects in Indonesia, Kuwait, Algeria, Iraq, Maldives, Myanmar, Omar, Palestine, Qatar and Tunisia,

among others across the Middle East.

“HIMOINSA has developed a new model to complete the family of lighting towers in the APOLO Range. The AS4006V tower, belonging to the APOLO Start series offers the same versatility as the AS4006 and AS4008 models, but adds other values that facilitate handling and transport. The new design incorporates a vertical raise telescopic mast, executed manually, allowing 8 units to be transported in one 20 feet container and up to 18 in a 40 feet container. In this way, transport is optimized allowing up to two and four more units to be transported in the 20› and 40› containers respectively, when compared with the AS4006 and AS4008 models,” explained Elum.

Himoinsa products are reliable with a user interface that is simple, user-friendly, intuitive and effective. It is with this goal in mind that HIMOINSA designs and manufactures electronic systems. Its controllers can communicate with the new Stage 3A engine protocols and interpret and handle complex safety algorithms, simplifying them to offer a pleasant and productive user experience.

Logistics News ME | April 2015 | 57

PROFESSIONAL PERSPECTIVES

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SC MANAGEMENT STRATEGIES THAT HELP REDUCE SHRINKAGE

By Prakash ‘PK’ Menon

WHILE THEFT AND SHOPLIFTING MAKE UP ABOUT 75% OF ALL SHRINKAGE, POOR PROCESSES WITHIN AN ORGANIZATION, INEFFECTIVE SUPPLY CHAIN MANAGEMENT PRACTICES SUCH AS INADEQUATE INVENTORY CONTROL, PAPERWORK ERROR, A LACK OF DISCIPLINE WITHIN STORES AND WAREHOUSES AND SLOPPY SUPPLIER PRACTICES CONTRIBUTE TO THE REMAINING 25%.

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retailer’s role is to satisfy customer needs and wants while simultaneously making money. To make the highest profits possible, retailers must maximize sales opportunities and minimize losses resulting from stock outs, markdowns and shrinkage.

In terms of shrinkage, ask a retailer what measures they adopt to reduce it and most will respond with details about some new technology based device that promises to deter would-be thieves.

However there is much more to shrinkage than in-store theft alone, whether it is shoplifting (external theft) theft at the hands of an employee (internal theft), or vendor fraud.

Human error and waste (also referred to as process failures) are another two major contributing factors to shrinkage that are all too often dismissed as insignificant. This article discusses why your supply chain plays a major

58 | Logistics News ME | April 2015

role in shrinkage minimization and shares some key strategies to reduce shrinkage through more efficient and effective supply chain management principles that are designed to minimize process failures.

THE FOUR ELEMENTS OF SHRINKAGE: Let’s start by taking a look at the definition of the term ‘shrinkage’. Expressed as a percentage of total sales, shrinkage is simply the difference between the stock you can account for and the stock value you should have according to your figures. While theft and shoplifting make up about 75% of all shrinkage, poor processes within an organization, ineffective supply chain management practices such as inadequate inventory control, paperwork error, a lack of discipline within stores and warehouses, and sloppy supplier practices contribute to the

remaining 25%.

Insert image showing 4 equal pieces of a puzzle – Internal Theft, External Theft, Vendor Fraud and Process Failures.

Although supply chain management is often the least commonly thought of shrinkage minimization strategy, human error and inadequate inventory control, transportation and warehousing functions can have a greater negative impact on shrinkage than many think.

SUPPLY CHAIN STRATEGIES TO HELP REDUCE SHRINKAGE: Effectively manage the flow of inventory: Inventory can be your greatest asset or your greatest liability. Not enough, especially of items that are in high demand, and you risk dissatisfaction from customers when you fail to deliver on their demand. But too much

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inventory can prove to be equally problematic in that it can present too much of a temptation to thieves, either in the store, on the dock, in the warehouse or in transit.

Managing the flow and aiming to receive merchandise in smaller lots and just in time is the key. The best rule of thumb is to focus your efforts on ensuring the right number of the right products hit the right stores at the right times so that maximum sales can be achieved quickly. This is even more vital when it comes to perishable goods to avoid unnecessary wastage of items that fail to sell before their use-by date.

MINIMIZE PAPERWORK ERRORS: Paperwork errors can occur almost anywhere in the merchandising cycle, for instance: Goods that are marked at a lower price than that recorded on the receiving record, failing to record all markdowns, and miscounting inventory, to name just a few. Paperwork errors can be significantly reduced by utilizing an effective system that incorporates built-in checks and balances.

MINIMIZE DAMAGE IN THE WAREHOUSE AND IN TRANSIT: Efficient logistics help manage the receipt and storage of goods from suppliers and thereby minimize damage in the warehouse and in transit and reduce over-ordering.

Minimizing damage in the warehouse is connected to ordering the right levels of stock at the right time to avoid oversupply, which often leads to sloppy storage practices, which in turn can result in damaged goods. In fact one of the main reasons cited for over-ordering is disorganization in the logistics department.

Failure to neatly stack or rotate products on warehouse shelves can result in both increased damage and an increase in products that sit unnoticed for lengthy periods, causing them to go beyond their use-by date (for non-perishable goods, this equates to products that are no longer in demand). In addition packaging, transport and warehouse staff must be properly trained to correctly handle goods in order to avoid damage.

BETTER CONTROL OF DAMAGED OR EXPIRED / END OF LINE GOODS: It is good supply chain management practice to establish a procedure and a dedicated area that facilitates the decision-making and activation process to discount or return (for credit) damaged, or expired/end of line goods.

Documenting all discounted goods creates a visible audit trail that can be investigated later to see if there is a pattern in certain stores, which may help to reduce shrinkage in the future.

Prakash ‘PK’ Menon

IMPROVED INVENTORY MANAGEMENT PROCEDURES: Regular accurate inventory auditing processes are the best means to ensure the accuracy and integrity of incoming and outgoing stock. It is important that audits be performed regularly as an accumulation of inaccuracies can easily result in unnecessary shrinkage. Ecommerce is another good means of increasing data integrity and in turn, improve stock management and reduce shrinkage.

AVOID THE SILO MENTALITY: There is a saying in the school of Logistics that states, “Just as no soldier has ever won a war by himself, no retail buyer, merchandise planner or marketer has ever built a retail empire on his or her own.” Every link in the chain, from directors and senior managers to shop floor assistants and warehouse staff has a vital role to play in the big picture.

Sluggish, wasteful and chaotic performance in the retail sector is largely the result of a ‘silo’ mentality in which each sector of the business is only concerned with its own area of responsibility. Instead of functioning as cohesive teams that manage integrated systems and processes from end to end, individuals and departments operate in compartmentalized ‘silos’. In other words, the left hand doesn’t know (or care about) what the right hand is doing. This ultimately translates to a culture in which people give no thought to the welfare of the retail enterprise as a whole when it should be the opposite.

Take buyers and merchandise planners for instance. In an ideal world, the relationship between them could be likened to that between the navigator and driver in a car rally. The buyer ‘drives’ the range development and fit to customer needs while the planner monitors the ’road’ advising the buyer when to turn left or right, to slow down, speed up or stop. A sound, collaborative working relationship between the two can have a positive impact on reducing shrinkage because both are working together to ensure the right quantity of the right product hits the right location at the right time.

Effective systems will never be enough if all staff (from the receiving staff and buyers to warehouse personnel salespeople and office staff)

Internationally acclaimed speaker, thought leader, author and mentor Prakash ‘PK’ Menon is the Executive Director, ‘Thought Leaders Middle East’ and one of the world’s most respected supply chain experts and leadership authorities.

Menon, a regular contributor to Logistics News Middle East, has authored three bestselling books, ‘Driven’, ‘Fail Smart’ and ‘Supply Chain is Sexy’, all of which continue to inspire both neo-entrepreneurs and established business leaders.

Prakash ‘PK’ Menon helps entrepreneurs, retailers, corporate professionals, CEOs and aspiring business owners, speakers and mentors achieve world class results and financial independence. aren’t following or haven’t been trained in the correct procedures. Furthermore, it is vital that the entire team, starting at the top, from the CEO all the way down the line, is on board when it comes to making shrinkage minimization a top priority. At the end of the day, the most effective strategy for minimizing shrinkage of all is the implementation of a shrinkage awareness and training program for all staff and following it though with open communication and a level of accountability around the issue.

Logistics News ME | April 2015 | 59

SOF T TALK

MUSTAPHA KAWAM, GLOBE EXPRESS SERVICES

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I AM PLEASED TO INTRODUCE ‘SOFT TALK’, AN INTERVIEW CONDUCTED IN AN EASY, ENGAGING, INFORMAL STYLE THAT PUTS THE SPOTLIGHT ON THE INTERVIEWEE. THE PAGE IS INTENDED TO BRING AN ELEMENT OF LEVITY TO THE EDITION, SO THE QUESTIONS ARE NOT ALL ENTIRELY BUSINESS-RELATED AND TEND TO BE SOMEWHAT PERSONAL IN PART, IN ORDER TO BRING HIS OR HER PERSONALITY TO THE FORE. READERS CAN THUS SEE THE ‘BRIGHTER, BIGGER & ALL-ROUNDED’ -EDITOR THIS MONTH’S EDITION OF SOFT TALK PUTS THE SPOTLIGHT ON MUSTAPHA KAWAM, MANAGING DIRECTOR—GULF STATES, GLOBE EXPRESS SERVICES.

What top three / four attributes describe you best?

I believe that I could be easily described as persistent, ambitious, and positive.

What must-have characteristics do you look for in your employees?

First and foremost, I always look for honesty and loyalty. I also eye ambitious people, those who exhibit a strong will to excel in the work place. Last, but certainly not the least, I watch out for a 60 | Logistics News ME | April 2015

strong sense of professionalism. I believe these important characteristics make a dynamic employee.

routine in my line of work, every day presents a new challenge which I look forward to and appreciate.

What drives and motivates you on a day-to-day basis?

I have been working in logistics for the past 20 years. I am, and have always been, very passionate about my field and industry.

I come across a lot of interesting and exciting opportunities. As there is no

What do you like most about your job?

I like the fact that my job is dynamic and involves interacting with different parties on local and international basis.

It motivates me to rise up to whatever challenges the day may bring. In addition, I like the sense of family and team spirit around our workplace.

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I THINK THAT, TO ACHIEVE A BALANCE, IT IS IMPORTANT TO KNOW WHAT AND WHEN TO PRIORITIZE. THIS IS WHY WHEN I AM IN THE OFFICE; I SWITCH OFF FROM MY PERSONAL LIFE. I BELIEVE IN THE IMPORTANCE OF COMPARTMENTALIZING SO THAT I CAN FOCUS MY ENERGY AND ATTENTION FULLY TO THE TASK OR SITUATION AT HAND

What interests you outside of the business sphere?

Other than families and friends, I enjoy sports and travelling. I spend my leisure hours with my two daughters with whom I share a lot of common interests.

What are your hobbies / leisure time activities?

I read to unwind from the daily grind, that has always been a favorite past time of mine. I also like playing tennis, which is one of my favorite sports and which allows me to exercise. I am also an avid car enthusiast.

If you were not in the supply chain & logistics arena, what would you have aspired to be?

If I had not pursued a career in supply chain and logistics, I would have been in retail industry.

Earlier in my professional life I worked in this business and had always been of interest to me.

Describe your business philosophy in two sentences?

There are many paths to success. Constant learning, planning and execution have driven me more than anything else for the past 25 years in the business.

What advice would you give young people wanting to make a career in logistics?

For young people who are considering a career in the logistics industry I would say: Go for it. Give it your all, and devote yourself 100 per cent to your career of choice.

If there were two causes you would espouse, what might these be?

I have been a member of Lebanese Scout Association since the age of 14 and I am very passionate about giving back to the environment. Apart from this, I have passion for supporting the education of children in need.

Mustapha Kawam

These two causes are very close to my heart. I believe that it is our duty as citizens to provide an opportunity to the young minds to reach their potential through proper training and not allow them to be hampered by their financial situation.

What would you regard indispensable?

I believe that honesty and ethics are the most essential things in life. I strongly believe that these are indispensable values both in the work place and in personal dealings.

What do you regard as the key to your success?

Right people on board, an amazing company culture and ability to overcome challenges are the key to my success.

How do you attain work-life equilibrium?

I think that, to achieve a balance, it is important to know what and when to prioritize. This is why when I am in the office; I switch off from my personal life.

I believe in the importance of compartmentalizing so that I can focus my energy and attention fully to the task or situation at hand.

How do you generally relax after a working day?

After work I like to relax by playing sports or going to the gym. Of course, aside from getting my regular exercise I also enjoy spending time with family and friends.

What do you like most about working in the UAE? Mix of culture, rules and regulations and lively atmosphere makes life interesting in UAE. Being such a global nation, the UAE allows me to engage and interact with people from different backgrounds.

Besides the UAE also presents a very challenging and competitive work environment.

As Managing Director, Gulf States for Globe Express Services, Mustapha Kawam serves as a key role in GES’ sustained growth. He first joined the organization in February 1995, serving as a sales representative, sales manager, and ultimately, as branch manager of the Dammam, Kingdom of Saudi Arabia’s office, overseeing daily operations, sales and administrative activities and successful certification for the ISO 9002 standard.

In 2001, he relocated to Dubai, where he served as Country Manager, United Arab Emirates, responsible for managing and supervising all logistics, communications and strategic activities for multiple corporate locations and facilities. He also played an instrumental role in the establishment of GES Kuwait and further expanding the company’s presence within the Gulf States region.

In 2012 he helped oversee the completion of a new industrial warehouse with accompanying office in Dubai’s Jebel Ali Free Zone. While in Saudi Arabia, the firm opened a new Dammam Terminal Yard.

Under his leadership, GES was recently awarded the Maersk Platinum Award as one of the best performing logistics providers in the UAE. Logistics News ME | April 2015 | 61

FORKLIFTS

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David Dronfield

FAMCO GIVES LINDE FORKLIFTS A BIG LIFT 62 | Logistics News ME | April 2015

Linde Material Handling, headquartered in Aschaffenburg, Germany, ranks among the world›s foremost makers of lift trucks and warehouse trucks and is also positioned as a major manufacturer of hydrostatic drives produced mainly for use in construction, farming and forest machinery as well as the Linde range of lift trucks.

Officials from Linde in Germany, France and the regional UAE office recently hosted a week-long training and development event for its dealers across the Middle East. The extended training and familiarization programme was conducted at a leading hotel venue and the Rashidiya, Dubai Training Centre of Linde’s key & leading GCC representative FAMCO. The invitees participated in meetings, sessions, roundtables and conferences where they were briefed on the rewards, cost-efficiencies, ergonomic benefits and competitive advantages of the Linde forklifts in comparison with other forklifts. The participants were also invited to try and test out the Linde H30D and three other competing forklifts to compare and contrast and draw their conclusions about the efficacy of the Linde forklift as the most efficient material handling solution.

A wide-ranging power-point presentation on the Total Cost of Ownership replete with figures and data was provided by Kamlesh Asarpota, Regional Product Manager, Storage & Handling Solutions Division at FAMCO—Linde.

“The purpose-built, sturdy, durable H30D can lift up to 3 tons and travels at speeds considerably higher than its competitors even under full load. It represents the best value-for-money for a product in this category providing efficient loading and unloading capabilities thereby providing higher work productivities,” he remarked in special remarks to Logistics News Middle East.

“The Linde H30D is a multipurpose, adaptable workhorse with a smaller but potent engine that can out beat its rivals,” averred David Dronfield, General Manager of FAMCO’s Storage & Handling Solutions Division. “It can lift crates, haul equipment and transport even the largest packages. The heavy-duty forklift moves up and down with ease, and the prongs on the forklift open and close to carry an assortment of items. It is efficiently designed and its many signature Linde attributes and special characteristics are testimony to its quality performance, ingenuity, versatility, sturdiness and importantly fuel and costefficiency in logistics” he further explained.

“Linde is a symbol of innovation and excellence and offers its know-how, gained during decades of developing and manufacturing electric drive systems, to external customers for a wide variety of applications. As an international company, Linde Material Handling operates nine production and assembly plants in all important regions worldwide and has a global sales and service network with offices in over 100 countries,” commented Carmen Dyck from Linde’s Sales Division in HQ and Trainer from the Sales Academy.

FAMCO (Al-Futtaim Auto & Machinery Company) offers a wide variety of products and services to a diverse range of industries and commercial businesses covering the logistics and various industry verticals.

It is, without doubt, one of the harshest environments on earth: the Empty Quarter in the Kingdom of Saudi Arabia – the largest and most barren sand desert in the world, spreading itself over four Arab nations and covering 650,000 km2 which is comparable in size to France. Temperatures range from 50° to -1°C in the course of a single day and the sand and dust are relentless. The nearest city is 1000 kilometres away. So the construction of the road cutting through the desert, linking Saudi Arabia to the Sultanate of Oman, called for an extraordinary solution.

The response: a eet of 95 Volvo machines was assembled. Together, they shifted over 130 million m3 of sand just to build the bridge of the road – an extraordinary feat in such harsh conditions, yet the quality and power of Volvo engineering was up to the challenge. The difculties created by the remote isolation of the worksite were answered with excellent customer support from FAMCO, the authorised Volvo dealer in Saudi Arabia, which included the organisation of mobile 24/7 service workshops that moved forward with the construction operation. Discover a new way. www.emptyquarter.volvoce.com Watch video

Exclusive distributor of Volvo Construction Equipment in the UAE and Saudi Arabia Al-Futtaim Auto & Machinery Co. LLC United Arab Emirates: 800 32626 Saudi Arabia: 800 1244414 e-mail: famco@alfuttaim.ae www.al-futtaim.com

www.famcosaudi.com Logistics www. famcouae.com News ME | April 2015 | 63