Logistics News ME - December 2016

Case Study

Viewpoint

Country focus

MAN works to improve the safety of trucks

Opinions from Mix Telematics & Swisslog

Bahrain takes centre stage

Connecting trade professionals with industry intelligence

December 2016

Transforming the F&B supply chain

Start 8 | News

Features

Contents

18 | Case Study

On the road with MAN Trucks

22 | Cover Story The role of logistics in reducing the UAE’s $3.7bn food waste problem

30 | Country Focus How to do business in Bahrain and a rundown of the Gulf state’s latest logistics investments 34 | Technology A look at the innovations on show at the Rockwell Automation Fair 2016

22 30

40 | Viewpoint Comment from across the industry

48 | Transport On the road with Mercedes-Benz 52 |Supplier News 56 | Diary

48

40 Logistics News ME | December 2016 | 3

Editor’s Note

T

he last month has seen a number of events to promote road safety and warn of the dangers of long journeys and tired drivers, two of which are covered in this issue.

Such events are a regular occurrence, with a number showcasing lifesaving equipment and technology specifically for haulage and transportation businesses. They all gain column inches while promoting new targets set by the authorities for a future milestone, yet people continue to die on the GCC’s roads every day. Crashes involving heavy vehicles claimed more than 200 lives between the year 2000 and 2014 in the UAE alone. But what if it isn’t the idea of safety that we need to promote, but respect for the job of professional driver?

In many Western nations, truck driving is a point of pride. It has inspired a plethora of non-commercial vehicles for everyday use, is associated with certain items of clothing and has been immortalised in songs, films and stories for decades. In short, outside the GCC trucking is a way of life, not a “job”.

Here in the GCC things are a little different. Driving a truck is widely viewed as manual work, undeserving of the status it enjoys elsewhere. And while we may be lucky to escape the bad music and clothes, there are certain aspects of its culture the GCC would do well to adopt.

The first things to remember is that driving, while a widelyheld skill, is also a profession, and drivers must be recruited, trained and paid, as though they are professionals. It’s an issue the arises from the employment structure and labour culture of the region and it is one that requires urgent address.

Dozens of drivers have anonymously reported 20 hour shifts

and overloading of vehicles in order to meet delivery deadlines.

Monthly salaries are some of the lowest and financial incentives tied to performance are driving a dangerous game.

The UAE in particular has made incredible leaps in the welfare and care of its on-site construction workers, but now the same needs to be seen for drivers in the logistics and transportation industries. Increasingly calls are being made to regulate working hours and ensure drivers are not only trained but educated on the many factors affecting safety, including the capabilities of the powerful vehicles they drive.

Road safety strategies are attempting to map the route to safer roads for all road users and regulation and technology can assist with that. But meeting targets to drastically cut the number of road fatalities will require more.

The situation isn’t unique to the logistics and transport sectors – taxi, anybody? – but addressing it must urgently begin there, for the safety of everybody else on the road.

Melanie Mingas Editor

CEO Wissam Younane Wissam@bncpublishing.net

Editor Melanie Mingas Melanie@bncpublishing.net

Managing Director Walid Zok Walid@bncpublishing.net

Group Sales Director Joaquim D’Costa jo@bncpublishing.net +971 50 440 2706

subscriptions@bncpublishing.net

Director Rabih Najm Rabih@bncpublishing.net

Sales Manager Jayant Dey jayant@bncpublishing.net

PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 F +971 4 4200 196

Group Publishing Director Diarmuid O’Malley Dom@bncpublishing.net

Art Director Aaron Sutton Aaron@bncpublishing.net

Marketing Mark Anthony Monzon Mark@bncpublishing.net

For all commercial enquiries related to Logistics News Middle East contact P +971 4 4200 506

SU B S C RI B E

All rights reserved © 2014.

Opinions expressed are solely those of the contributors.

Logistics News Middle East and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Logistics News Middle East.

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

Images used in Logistics News Middle East are credited when necessary. Attributed use of copyrighted images with permission. All images not credited otherwise Shutterstock.

Printed by International Printing Press | www.ippuae.com

news

In the NEWS

Hamad Port management partnership named

M

wani Qatar and Milaha have established a new company QTerminals, to manage Qatar’s $7.4bn Hamad Port, under a 51:49% respective ownership model. Port operations will be managed by the firm as an independent company with its own board of directors, executives and staff.

The deal was signed by Mwani Qatar CEO Captain Abdulla Al Khanji and Milaha president and CEO Abdulrahman Essa Al-Mannai (pictured) and witnessed

by HE Minister of Transport and Communications Jassim Saif Ahmed Al Sulaiti, chair of Qatar Ports Management Company, Mwani Qatar, and Sheikh Ali bin Jassim bin Mohammad Al-Thani, Chairman of Qatar Navigation, Milaha.

Sulaiti said: “This strategic

10 | Logistics News ME | December 2016

partnership reaps the benefits of several years of strong collaboration and ties between Mwani Qatar and Milaha, which have brought about this common plan for managing Hamad Port, one of the country’s vital megaprojects, which will serve as Qatar’s gateway to world trade.”

The project is a continuation of the work of Emir Sheikh Tamim bin Hamad Al-Thani, who worked to support the private sector and increase its contibutions to the national economy.

“We are confident the new company, established collaboratively by two of Qatar’s leading corporations, will contribute to leveraging the country’s competitiveness among world economies,” he added.

Hamad Port represents a significant

addition to Qatar’s maritime infrastructure and will boast a handling capacity of 7 million containers per year after completion. It will also be connected to GCC countries through a road and, expected, rail network. It is expected the port will allow Qatar to position itself to become a regional commercial hub, on the road to achieving the objectives of the Qatar National Vision 2030.

The port has been open for operations since December 2015. When completed, Hamad Port will include a customs inspection area for rapid cargo clearance, a uniquely designed port 110m control tower, a ship inspection platform and multiple maritime facilities, in addition to other utilities required for port operation.

news

Alabbar launches $1bn e-commerce site

O

ne of the biggest names in Dubai’s business world has announced the launch of a $1bn e-commerce site, Noon.com. The site will go head to head with the likes of SOUQ.com and Amazon offering a near identical product catelogue and delivery options.

Mohamed Alabbar, announced the launch early last month with the site due online in January 2017, following a 50% investment from the kingdom’s Public Investment Fund (PIF) and further backing from around 60 investors led by Alabbar. Warehouses are being set up in Riyadh and Jeddah and a Dubai centre the size of “60 football pitches” will follow.

Alabbar said: “We expect to become a world player but will concentrate firstly on Saudi Arabia and the UAE.” Alabbar has already met with Amazon founder Jeff Bezos and is quoted by Bloomberg as telling him Noon would be traded on stock markets after five to seven years. It aims to be “profitable” within five years although does not specify how.

With online payments and cash on delivery options, the launch is incredibly similar to existing sites in the region.

Representatives from Noon declined to comment.

NIA opens new HQ in Jafza Dubai Iranian home appliances and HVAC solutions firm NIA Limited has moved into a new headquarters in Dubai’s Jafza with hopes the new facility will create growth opportunities in line with ambitions to hit AED550m in turnover within three years.

The brand new facility will function as the design, marketing and logistics centre for the company’s marketing and warehousing requirements.

“The launch of this facility is an important step forward in NIA’s strategy, strengthening our competitive position in the Middle East and Africa region. Our new facility will house 14,000 square metre of office space, 3000 sq. m of office area, and a warehouse spanning 9,000 square metre,” said managing director of NIA Limited UAE, Zakir Ahmed.

The new facility will offer a wide range of services including a technology centre displaying the latest developments in air conditioning, an Academy for Training and Certification of Engineers, as well as Logistics and Operations, with total storage capacity of 100,000 units.

“As of 2016, NIA Limited serves over 100 accounts in the UAE, including key accounts with turnover exceeding AED 15 million. The launch of this new facility will create greater growth opportunities, help the company expand its reach to the construction and retail channels within the coming year, and achieve a turnover of AED500 Million in the next two to three years. We also aim to expand operations from CIS to Africa in the future,” added. Ahmed.

“With the launch of this new facility, we aim to increase GREE’s market share to 20% with sales of 175,000 units in the UAE, by benefiting from being closer to our key markets and meeting customer demands quickly and efficiently,” Ahmed concluded.

Agility reveals Q3 2016 results Reflecting on Q3 performance, Agility has confirmed that its Q3 profits in 2016 were up 11% on 2015, with a net profit of KD15.17million.

Earnings-per-share stood at 13.19 fils for the period, and EBITDA stood at KD28.90 million, a 19% increase compared to the same period in 2015. Revenues are at KD 312.00 million for the quarter, a 7% decrease over Q3 last year.

“We have now been seeing continuous underlying increase in the profitability of the business. This is driven by steady progress in turning around our Global Integrated Logistics business, as well as by continued financial performance and growth in our Infrastructure group of companies,” said Tarek Sultan, Agility’s CEO. “We continue to make gains in the face of a challenging business context: from sluggish economic and trade growth in key regions to political uncertainty in others. I attribute Agility’s gains to sharper strategic focus and ongoing commitment to financial discipline, even as we invest in the markets, products, and technologies that will transform our business and help us continue to lead in the future.”

Revenue for Agility Global Integrated Logistics (GIL) stands at KD 228.65 million in Q3 2016, an 8% decline from Q3 of 2015. Net revenues were marginally lower in this quarter relative to the same period in 2015 with margins expanding from 25% to 26% in Q3 2016.

Logistics News ME | December 2016 | 11

news

AED440m aluminium plant signed for KIZAD

K

halifa Industrial Zone Abu Dhabi is to become home to a new AED440m aluminium manufacturing plant after Abu Dhabi Ports signed a 50-year Musataha Agreement with Emirates Aluminium Rolling (Emiroll).

Emiroll is a joint venture between DUBAL Holding, Dubai Investment Industries (a subsidiary of Dubai Investments PJSC) and Madar Aluminum Rolling Singapore (MARS). The new entity will also be provided with raw molten aluminium to produce aluminium rolled products from Emirates Global Aluminium (EGA), an existing investor in Khalifa Industrial Zone.

The agreement was signed on behalf of Emiroll, by H.E. Abdulnasser Bin Kalban, CEO of DUBAL Holding, and Mana Al Mulla, CEO of Khalifa Industrial Zone Abu Dhabi.

Expected to go on-stream by Q3 2017, the new plant will produce 65,000 tonnes of aluminium coils per annum, including

12 | Logistics News ME | December 2016

45,000 tonnes of cold-rolled and 20,000 tonnes of hot-rolled aluminium for applications in downstream industries, such as automotive body parts, rollershutters, garage castings, container trays, cans and aerosols.

Mana Al Mulla, CEO of Khalifa Industrial Zone Abu Dhabi, commented: “Abu Dhabi Ports’ collaboration with Emiroll aims to bolster the UAE’s downstream industries and expand the reach of the Capital’s export activities.

This venture will see more rolled products be produced with the support of EGA and is a great example of local entities joining forces to support the government’s vision of economic diversification and further position Abu Dhabi as a hub of integrated industrial excellence.”

“In 2015, the UAE was ranked the world’s fourth largest aluminium producer, accounting for over 50% of the Gulf region’s aluminium output. We are proud to have played a role in facilitating

the production of such a valuable metal that is in high demand across the globe.”

Abdulnasser Bin Kalban, CEO of DUBAL Holding and chair of Emiroll said: “Signing off the agreement with Abu Dhabi Ports for the long-term lease of the proposed plant site is a key milestone achieved within the agreed project timeline. I wish to congratulate the entire team for this significant achievement and also wish to thank the Abu Dhabi Ports management for their high-level professional support and necessary guidance.

“Emiroll is one of our projects aiming to boost the domestic consumption of EGA aluminium and thereby support the local economy through value addition, creation of more jobs locally and also support the promotion of an aluminium cluster in the UAE. I’m confident that Emiroll, once realised, will represent a shining example of cooperation among Emirati entities,” he added.

Complete Solutions - Design - Project Management Logistics Warehouse Logistics Village Industrial Building Commercial Building

AL DAWAA (2016) Pharmaceutical & Distribution Warehouse in JEDDAH: 45.000 sq.m

ALI BIN ALI (2015) Logistics Park Bou Fsila: 155.000 sq.m

LEOV

Logistics Automation Systems

possesses extensive experience in Industrial Buildings, Logistics Centers & Logistics Villages Design, which has been transformed into a reliable methodology for the Investment Projects of our clients.

Industrial Refrigeration Systems ESFR Systems (Early Suppression, Fast Response, Fire Systems with Sprinklers)

Slab on Grade, Super Flat Floors Heating, Ventilation and Air Conditioning Systems

ALI BIN ALI (2015) Logistics Park Bou Fsila: 155.000 sq.m

AL DAWAA (2016) Ph. & Dist.Warehouse in RIYADH: 35.000 sq.m.

AL DAWAA (2016) Ph. & Dist.Warehouse in RIYADH: 35.000 sq.m.

AL DAWAA (2016) Ph. & Dist.Warehouse in JEDDAH: 45.000 sq.m

Design and Construction of special Installations

We

can provide &RPSOHWH 6ROXWLRQV for the 'HVLJQ 3URFXUHment and Project Management of Logistics & Industrial Development Projects.

IBLS possesses the methodology and experience for the GHVLJQ and the LQVWDOODWLRQ FRQVWUXFWLRQ of special facilities.

AL DAWAA (2016) Ph. & Dist.Warehouse in RIYADH: 35.000sq.m.

AL DAWAA (2016) Ph. & Dist.Warehouse in RIYADH: 35.000sq.m.

IBLS has built ORQJ WHUP UHODWLRQ VKLSV with key Clients, through Experience, Skill, 7HDP ZRUN

Buildings Electromechanical installation Automation system ALI BIN ALI (2015) Logistics Pask Bou Fsila: 155.000sq.m.

GULF W.C. (2015) Storage Facility at st.2: 3.000sq.m.

Facility Maintenance for DETAILED DESIGN

ANALYZE

,QWHJUDWHG OHYHO RI 4XDOLW\ DQG 7HFKQLFDO &RPSHWHQFH for all parts of the design Project Management based on the Detailed Design

CONCEPTUAL DESIGN DEFINE

&HUWLÀFDWH RI ,QVXUDQFH PROJECT MANAGEMENT Ib + Ls Industrial Buildings & Logistics Solutions S.A. GREECE : 4 th Evrou Str., Galatsi | PC: 11147, Athens Greece | info@ibls.gr | T: +30 210 2934140 | F: +30 2102131145 | www.ibls.gr QATAR : Al Mana Bus. Tower, Office No.9B | C-Ring Road | Doha, Qatar | info@osisgroup.com | www.osisgroup.com | T: +974 44120889 KSA

: P.O. Box 3953 | Al Khobar 31952, Al Khalidiyah | Dammam, Kingdom of Saudi Arabia | T: +966 920003505

VISION

ROADMAP

news

Lulu Group International inaugurates US logistics bases

Abu Dhabi headquartered retail and hospitality group Lulu Group International, inaugurated its food processing and logistics bases in North America with the launch of YInternational, a wholly owned subsidiary of the group which now operates from Lyndhurst, New Jersey. The new venture is expected to create opportunities for US retailers in the Middle East.

The export centre will purchase, process, re-label and export food, nonfood, chilled and frozen products made in the U.S. In the first phase there are 75 employees which is expected to eventually grow to 200 to 250 employees within the first year.

Speaking to media during the ceremony, Choose New Jersey CEO and president Michele Brown said: “In addition to bringing new jobs to our state, Y International’s export centre will give New Jersey and US manufacturers the opportunity to reach new markets in the Middle East and beyond.”

The $6.6bn turnover Lulu Group operates hypermarkets, supermarkets and shopping malls, in addition to wholesale distribution, food processing and hospitality with operations in 37 countries, including the GCC, India and Far East. The company has a 32% market share in the Middle East. Lulu is ranked among the Top 10 fastest-growing retailers in the world by Deloitte International.

B&H Worldwide appointed to Heathrow parts facility Specialist aerospace logistics and warehousing provider B&H Worldwide has been appointed by Logix Aero to operate a new Heathrow parts facility that will provide specialist round-the-clock support to the company’s global operations.

The Contract will see a dedicated team at B&H taking responsibility for Logix‘s warehousing, receipt and dispatch and repackaging of all materials coming into the facility, as well as integrating B&H’s OnTrack aerospace IT specific system, which it developed in-house, into the general supply chain.

Logix Aero’s Director Antoine Marez said: “B&H is very experienced and has demonstrated its capability to manage our airframe parts as well as our complete PW100 Engines and auxiliary power units (APU) with the same efficiency. The quality of the services provided by B&H will enable Logix Aero to continue to grow rapidly by serving our customers across sales, exchanges or lease airframe parts, engines or APUs.”

Singapore’s GIC seals $2.7bn deal Singapore’s sovereign wealth fund, GIC, has completed the largest European property deal of 2016 with the acquisition of Czech warehouse developer, P3 Logistics Parks for $2.7 billion.

P3 Logistics is one of Europe’s largest fully integrated logistics platforms and developers with 163 warehouses across

14 | Logistics News ME | December 2016

nine European countries. The purchase is GIC’s first step into the European logistics market following significant investment into platforms across Asia Pacific and the U.S. P3 was acquired from U.S.-based TPG Real Estate and its Canadian partner Ivanhoe Cambridge.

It is expected further deals could follow. JLL’s Head of Industrial in

EMEA, Phil Marsden, said for investors such as GIC, platforms like P3 offer immediate scale across the region coupled with access to an established developer, allowing for further growth.

“We see GIC’s entry into the European market as the first of potentially several such transactions in EMEA, with further activity expected in 2017,”

THE SAFETY AND EFFICIENCY OF YOUR FLEET

IS IN YOUR HANDS

/HDGLQJ ÀHHW RSHUDWRUV KDYH VRPHWKLQJ LQ FRPPRQ WKH\ FKRRVH WHFKQRORJ\ WKDW HQDEOHV WKHP WR SULRULWLVH GULYHU DQG URDG VDIHW\ ZKLOH ERRVWLQJ SURGXFWLYLW\ DQG HI¿FLHQF\ OHYHOV )RU H[DPSOH 0L; 7HOHPDWLFV FXVWRPHUV VDYH XS WR RQ WKHLU IXHO FRVWV 7KLV EHQH¿W LV DFKLHYHG SULPDULO\ E\ LPSURYLQJ GULYHU EHKDYLRXU $QG ZLWK WKLV DFFLGHQW UDWHV DUH VLJQL¿FDQWO\ GHFUHDVHG ± LPSURYLQJ VDIHW\ DQG IXUWKHU OHVVHQLQJ EXVLQHVV ULVN

7R ¿QG RXW PRUH RU DUUDQJH D FRQVXOWDWLRQ FRQWDFW XV RQ

ZZZ PL[WHOHPDWLFV DH

news

HR Excellence award for RSA Logistics

T

he 2016 Middle East HR Excellence Awards, which took place last month, recognised RSA Logistics as “employer of the year”.

The logistics and transportation company based in Dubai, is a relatively new player to the market.

Commenting on their win, Abhishek Ajay Shah, Co-founder and Managing Director said, “RSA Logistics is honoured

to be named Employer of the Year. We strive to create an enriching, value-based culture and environment of learning, engagement and endless possibility for our team to help them achieve personal growth. We are very proud of our team, and will continue to push ourselves to deliver the best for them.”

Other winners included Cleveland Clinic Abu Dhabi for “Nationalisation Initiative of the Year” award for their

efforts in attracting and retaining Emirati talent. Emirati Director of HR at Jumeirah Creekside Hotel, Mona Al Hebsi was named HR Professional of the Year, the evening’s highest accolade for individual categories.

Finally, Innovation in Employee Engagement was won by local bank, National Bank of Fujairah and Abu Dhabi Commercial Bank won an award for its innovation in learning and talent development.

Audi implements ProGlove scanners Workers at Audi’s Ingolstadt plant have been equipped with the wearable logistics tech gadget ProGlove, which features an embedded barcode scanner to allow for multiple tasks at any one time and what the automotive manufacturer terms “ergonomic” working.

Nick named “Mark”, the ProGlove underwent a four week testing phase and now Audi employees are using ten of the wearables in five positions in the plant.

Employees can trigger the scanning function by pressing the thumb and first finger together, leaving both hands free for their work and saving additional hand movements.

“For our employees, the scanner glove is a real help. It makes them more flexible; they can move freely and can scan and pack the cartons more easily,” explained Hartmut Bartsch, head of CKD Packing. “In addition, with the help of the glove, we design complex logistics processes to be more innovative and more efficient.”

“The development of ProGlove follows the idea that wearable electronics have to support the employees. That’s why we have developed a light glove for industry that is intuitive to use, and which can be deployed without any integration expense,” stated Thomas Kirchner, CEO of ProGlove.

16 | Logistics News ME | December 2016

We’ll pick up your Logistics operations The Rais Hassan Saadi (RHS) Group have been at the very front of the emergence of Dubai as a Shipping and Logistics hub since they started operations in 1910. Now over 100 years later, the

company has evolved into the regional powerhouse it is today with diverse interests across the region.

RHS Logistics, the 3PL and supply chain systems integrator, operates from the Middle East, but with a truly global vision. Utilising the latest of technologies, and with a wealth of experience on diversified product handling, in high quality, sophisticated environments, it has cemented its status as an innovative market leader within the Logistics industry.

With cutting edge facilities in Dubai World Central, Jebel Ali Free Zone, Dubai Airport free Zone adjacent to the Sea and Air ports, housing a total of 100,000 pallet locations, RHS have and will continue to invest in first class infrastructure, ensuring they remain leaders in their field.

How can RHS Logistics help your Logistics business?

Call us on (971-4) 8810007, (971-4) 8082300 or visit rhslogistics.com

RHS Logistics represents the 3PL division of the RHS Group of companies operating out of Dubai, U.A.E.

RHS Logistics Established 1910

news

SOUQ Superstore launches Regional e-commerce giant SOUQ.com has launched the SOUQ Superstore, an online hypermarket for monthly grocery shopping.

The news follows SOUQ’s recent investment in InstaShop, as part of its drive to provide a world-class online shopping experience to customers. While InstaShop allows users to access their nearby grocery store directly through their mobile app with delivery straight to their door in no time, SOUQ Superstore is suited for consumers looking to stock-up on household items ensuring they never run out of essentials. SOUQ Superstore will feature a large range of products from the popular global FMCG brands such as P&G, Nestle, PepsiCo, Unilever, Henkel, Reckitt Benckiser, Mars, L’Oréal, Johnson & Johnson, Nivea and many more across six categories include babies and pets.

SOUQ.com launches SOUQ Superstore at a time of enormous global growth in online grocery shopping with up to 34% of online shoppers expected to buy groceries online this year versus 21% in 2015, according to recent Morgan Stanley Research. By adding this crucial category to their web-store offering, SOUQ.com has taken a huge step closer towards completing the purchase cart of a consumer on SOUQ.com and becoming a one stop shop for the region’s online shoppers.

Ronaldo Mouchawar, co-founder and CEO, SOUQ.com, comments: “It’s an exciting time to launch such a category as our digitally savvy consumers in the market are leading the online shopping trend and we are experiencing exponential growth in m-commerce. By leading with innovative solutions we are set to change the way consumers shop and eat today.”

Tina Chikhani Nader, shopper and customer marketing director – Gulf, Unilever explains: “E-commerce for FMCG products is poised for a period of growth. Our objective is to make sure that Unilever do not miss out on that growth opportunities. We want to be where the consumer is going, and will keep a keen eye on how this area develops in the near future.”

Omar Farid, president MENA for PepsiCo, comments: “E-commerce is a business megatrend globally and one we recognise as a priority at the regional level in MENA. As the demand from our consumers to shop online continues to rise with the adoption of digital technology, we must adapt to these changing trends. As PepsiCo broadens its portfolio of foods, beverages and nutrition products, having an online retail partner like SOUQ.com helps us to scale the access our consumers have to great-tasting, delightful and nutritious options.”

18 | Logistics News ME | December 2016

Food Logistics Forum held in Dubai

T

he first edition of the Food Logistics Forum, part of Gulfood Manufacturing, took place in Dubai last month, sponsored

by National Association for Freight and Logistics (NAFL).

Delegates at the event discovered how creating efficiencies in the logistics process could reduce the UAE’s staggering food waste problem by 5%.

Nadia Abdul Aziz, President of NAFL, the forum’s official logistics partner, stressed Dubai is wellpositioned to strengthen its positon as a global logistics hub. She said: “Dubai’s strategic location and exceptional connectivity at the ports makes it ideal for food re-exports.”

Abdul Aziz added that the country’s infrastructure and free zones present “an attractive opportunity for international and regional food logistics firms to set up food handling facilities.”

For the full story on F&B logistics, turn to page 22

Top Management Resources Group launches

L

ogsitics News’ roving reporter and Logsitics Executive former MD Brian Cartwright, has launched the Top Management Resources Group to provide an international management consulting network and executive services platform.

Operating out of Dubai, the new venture will build on Cartwright’s work to develop talent and enhance business networks and relationships throughout the global supply chain. The organisation has developed a suite of value added services and strategic partnerships designed to support business owners and senior executives in developing and enhancing their businesses, careers and ultimately their lifestyles. The services and advice provided by the Top Management Resources Group focus on three specific area’s namely; Talent, Trade, and Transformation.

Solutions are delivered through an established network of specialist advisors and industry experts with initial sector focus on supply chain and logistics, aviation dn aerospace, retail, manufacturing and distribution.

news

DHL Express receives AEO certification DHL Express is to roll out a faster and more efficient shipment service following its certification as the only Authorised Economic Operator (AEO) Express logistics company in the UAE, by Dubai Customs.

DHL Express’ AEO certification will enable an even closer partnership with the UAE’s customs department as trade and shipments to the country continue to grow in preparation for Expo 2020. It means that DHL Express will also now benefit from being part of a global supply chain that connects AEO certified companies with each other, further decreasing shipment time.

The framework was introduced at GITEX 2016.

Geoff Walsh, DHL Express’ UAE country manager, said: “The implementation of the AEO certification is a big step forward for the UAE in terms of being a significant player in the global supply chain. As countries across the world work towards implementing an AEO program, the UAE is currently in a unique position as it is the only country in the region to have implemented a World Trade Organisation Trade Facilitation Agreement concept.

“Dubai Customs’ trust in DHL’s high standard of security and global processes have been a major factor in our successful track record and maintaining the highest operational standards whilst benefiting from the UAE’s progressive global trading initiative. The DHL Express team in the UAE has grown considerably since we started operations here and in doing so we have been able to carry out bigger and more innovative projects to ensure that our customers are happy and satisfied with our operations and the new AEO certification will enable us to offer an even more efficient service to customers here in the UAE.” With 63 countries all over the world already having implemented an AEO program the UAE and DHL Express are in a unique position to be able to work closely with other AEO certified traders through mutual agreements, including - manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports terminal operators, integrated operators, warehouses and distributors.

Mobile key to future e-commerce

B

y implementing technology, retailers can connect with people as opposed to devices by using real-time customer and device data to create a seamless experience and a consistent brand story. Cross device purchasing is 50% of all e-commerce globally and 42% in Middle East and Africa.

In 2016, approximately 1 billion active mobile payment users exist globally. By 2019, the number is predicted to reach 2 billion. Mobile is driving an unprecedented shift in consumer behaviour and has reduced the use of cards and cash.

“A mobile first approach is key for any e-commerce business or retailer to succeed in this day and age. Globally, smartphones are leading the way and the MENA region is a 81% smartphone driven region with 43% e-commerce transactions happening through mobile, in comparison to 39% globally.” said Dirk Henke, Criteo’s Managing Director Emerging Markets.

He continued: “By optimising the mobile experience for smartphones and personalising mobile web shopping experience, brands will have a greater chance to convert browsers to buyers.”

According to Criteo’s Mobile Commerce Report H1 2016, 57% of retail mobile transactions are made within an app. By making applications a priority, building loyalty and rewards to inspire brand engagement, and providing personalised communications across all platforms, retailers can harness the power of apps for their business and generate 60%+ revenues in app.

The conversion rate for mobile app purchases is 13% as opposed to the desktop conversion rate, which is 11%. Technologies like deep linking and mobile retargeting help retailers drive downloads and traffic to apps.

The numbers were revealed during Criteo Live, an annual event held for the first time in Dubai last month.

Logistics News ME | December 2016 | 19

news

y Case Stud

MD of MAN Truck and Bus, Franz Freiherr von Redwitz, talks to Logistics News ME about MAN’s work to improve the safety of trucks and road transport

20 | Logistics News ME | December 2016

Case Study

I

n 2012, in the UAE, the number of deaths resulting from road accidents per 100,000 population stood at 6.71. The UAE Vision 2021 aims to reduce this number to 3 deaths per 100,000 population annually.

It’s a bold ambition and a difficult task, while logistics and transportation firms should be training their drivers and monitoring performance, they often don’t, leaving millions of road users at risk. Cultural considerations also play a factor, with levels of safety awareness differing vastly between nationalities.

As a leader in commercial vehicle products with a tradition of promoting the road safety message across the Middle East, MAN Truck and Bus is committed to supporting the UAE Government’s efforts to improve road safety and reduce traffic fatalities on the country’s roads through a number of methods.

“In general, education is important for all road users and not only for the commercial driver. All car drivers need to understand factors surrounding stopping distances and how they can

vary depending on vehicle type and speed. However when it comes to accidents involving trucks, the results are usually deadly. For instance, a semitrailer truck takes roughly three times more to stop than a car and hence one must never pull in front of a semi-trailer truck and brake abruptly,” says Franz Freiherr von Redwitz, MD, MAN Truck and Bus. “Through our ongoing safety campaign, we aim to highlight the top reasons that impact road safety from a commercial vehicle perspective such as load of the vehicle, driver alertness, worn tires and incorrect or incomplete maintenance. It is an important step towards greater cross-stakeholder collaboration that will help make the country’s roads safer,” he adds.

Last month in partnership with the government of Abu Dhabi, MAN hosted a two day interactive road safety event, attended by police, road users and media from across the UAE. The event was part of MAN’s commitment to helping the UAE achieve its road safety targets.

The main focus was to explore ways in which heavy commercial vehicles can

DRIVING TIPS FROM MAN • Loading: Severe overloading of the drive axle or under-loading of the trailer axle can adversely affect steering, braking and speed control.

• Tire suitability is a vital link in the load-to-road chain. Care must be taken to ensure that the maximum load rating for a tire is never exceeded.

• Driver alertness is critical.

• When it comes to braking, having an understanding of the complete inter-relationship of systems is important. Mismatch of tractortrailer combinations can result in an unsafe vehicle in operation.

• Maintenance has a large part to play in safety. Regular maintenance is essential to ensuring the safety of your vehicle and keeping it running at peak efficiency.

• Intelligent technology solutions such as MAN TeleMatics® can significantly contribute to enhancing vehicle safety and efficiency by providing drivers and fleet managers with essential data to optimise vehicle usage and plan services well in advance

Logistics News ME | December 2016 | 21

Case Study

Franz Freiherr von Redwitz Through our ongoing safety campaign, we aim to highlight the top reasons that impact road safety from a commercial vehicle perspective such as load of the vehicle, driver alertness, worn tires and incorrect or incomplete maintenance contribute to increasing safety and reducing fatalities on UAE roads.

Speakers at the event included experts from Abu Dhabi Police Road Safety Department, RoadSafetyUAE and MAN Truck and Bus Middle East who discussed the initiatives and solutions to meet Vision 2021 road safety targets.

Among the safe driving tips discussed, adequate and regular rest breaks, which are not protected under regional regulations. Abu Dhabi does stipulate a maximum shift of 10 to 11.30 hours, however it is “voluntary guidance” according to the Department of Transport.

If a driver has not slept in 17 hours, their driving ability is similar to a driver who is driving under the influence of alcohol. Today there are technology alternatives available, such as Tachographs, to monitor driver working hours, which have a huge impact on 22 | Logistics News ME | December 2016

accident rates in other countries. The Tachograph helps in enabling enforcement of rules related to drivers’ hours, and functions as an aid to road safety. Using a combined speedometer and clock, the Tachograph records automatically on a paper disc the

vehicle’s speed, distance travelled, and time spent on the road, helping keep tired drivers off the roads.

Redwitz says: “The impact of driver education and training on vehicle performance and safety is hugely underestimated in the region. As a

Case Study

result, many fleet owners are reluctant to invest in driver education.

“Also, there is a common misconception that the current situation can be changed solely by focusing on driver education and training. While driver education is of

course hugely important, the driver basically executes what a supervisor or transport manager requires, so it is paramount that fleet owners and managers adopt a more proactive approach to safety.”

The weight of the vehicle is also a

point of concern and it is not only the gross vehicle weight that can affect safety.

Load positioning and distribution too can have consequences for road safety, hence it important to know how to load the vehicle for safe use. Severe overloading of the drive axle or under-loading of the trailer axle can adversely affect steering, braking and speed control.

But MAN isn’t just talking the talk.

Among other things, the event was also a platform to highlight MAN’s ProfiDrive® training program - to increase safety on UAE roads, with an interactive iPadguided ‘Road Safety Walk Around’ showcasing the latest road safety technologies on a truck .

Redwitz explains: “Designed to improve driver knowledge and skills and promote rational driving behaviour based on safety regulations, MAN ProfiDrive® offers a range of training courses that combine theoretical and practical exercises to make everyday driving safer and more economic. The courses are carefully tailored to ensure drivers are fully trained on how to avoid risks on the road based on a cautious and safe driving style, and seek to guide them on the correct way to respond to critical driving situations.”

MAN trucks are equipped with a variety of technology designed to improve active and passive vehicle safety such as Electronic Stability Program (ESP) to prevent accidents caused by overturning or straying from the lane, Anti-Spin Regulator (ASR) to aid controlled braking, and Electronic Damping Control (EDC) to optimise safety and handling.

Redwitz continues: “Improving road safety is one of our highest priorities at MAN and we have many products available today in terms of technology solutions and driver training support which have been developed after many years of research based on various accident reports.

“With global expertise in the field of vehicle safety and road safety, MAN can contribute in a number of ways in enhancing road safety in the UAE – such as supporting the introduction of road transport regulations, providing training and education for transport operators and enforcement officers, and supporting the introduction of mandatory vehicle specification standards for new product deliveries.”

Logistics News ME | December 2016 | 23

Cover Story

In the simplest terms the UAE’s $3.7bn food waste problem is blamed on low cost, supersized portions at restaurants and over-zealous home chefs. But the problems begin much further back in the supply chain. Logistics New ME investigates how and where improvements can be made

24 | Logistics News ME | December 2016

Cover Story

T

he UAE has a $3.7bn food waste problem but it isn’t caused by people buying, cooking and serving too much food. In fact professionals from the logistics and food industry last month claimed at least 5% of the problem could be eliminated if logistics solutions were improved.

The figures are arresting: 3.27 million tonnes of food is wasted every year in the UAE, at a cost of $3.7bn, according to research conducted by Abu Dhabi’s Massar Solutions. The firm also estimated that a truck load of food is worth on average Dh100,000, meaning that the annual cost of food waste in the UAE is a staggering AED13.6 billion. The World Resources Institute reports that in Dubai nearly 38% of food is wasted every day, increasing to 55% during Ramadan. In Abu Dhabi, 39% of the 1.1 million tonnes of municipal waste generated in the emirate each year is leftover food discarded by residents, according to statistics released last year by the municipality.

At Gulfood Manufacturing last month in Dubai, special focus was placed on the logistics of food distribution and consumption with the launch of the Food Logistics Forum, supported by NAFL. The event is the region’s only F&B logistics platform to explore critical issues shaping the future profitability and sustainability of the entire food value chain.

Food-specific logistics remains a core component of the UAE logistics industry and the issue of waste is vital for Dubai, which currently re-exports nearly half of its imported food product to other GCC countries as well as Russia, India, Pakistan and East Africa, according to the Dubai Multi Commodities Centre.

Further to recent discussions at Gulfood Manufacturing, NAFL president Nadia Abdul Aziz, is leading a campaign to strengthen the example Dubai and the UAE can set to the rest of the world. Abdul Aziz spoke on how the emirate plans to keep ahead of competing global markets and what it means for transport and logistics stakeholders at the Food Logistics Forum.

Speaking about the wider issue, Trixie LohMirmand, SVP for events and exhibitions at DWTC, said: “The UN’s Food and Agriculture Association has clearly stated that substantial savings can be made in food loss and waste through improved storage and transportation. These are now crucial

issues as countries and industries move to reduce their carbon footprints and deliver on sustainability goals.”

Brent Melvin, general manager of Supply Chain Solutions, says: “The figures speak for themselves, and highlight the need for the industry to look at responsibly reducing food waste throughout the supply chain process. Although some element of waste cannot be prevented, reducing its scale will deliver significant economic, social and environmental benefits.”

Making a change Globally, food waste is perceived as a social injustice and the solution, the simple act of individual shops and restaurants giving away their unsold produce to those in need.

In the media, much has been made of the people who eat nothing but the food thrown away by supermarkets.

But what consumers and industry professionals need to understand is that the end of the supply chain is by far the least porous part. Melvin explains: “F&B fleet operators play a critical role here, just as much as production and distribution companies. We have some of the best transport infrastructure in the UAE however, there is an urgent need to increase the level of efficiency of F&B fleets and logistics operations. This can be achieved by adopting innovative solutions and technologies that can help ensure the quality of food is maintained right up to final delivery. Around 5% of the food loss can be reduced through intelligent logistics, which includes real-time checks and proper driver training.”

Innovation will also play a role with transport manufacturers racing to create bespoke solutions for the F&B industry.

A partnership between Gargash and Mercedes-Benz is set to roll out a new range of futuristic trucks, highlighting their fuel-efficiency and productivity, specifically for F&B distribution segments.

The promotion will also see a focus on new Mercedes-Benz electronic trucks including the Urban eTruck, the company’s first fully electric truck, and its ‘Vision’ vanof-the-future concept.

Telematics also plays a part, with an estimated 30% of all vehicles requiring installation of a telematics system. Last year, Massar Solutions acquired 20 Gorica designed Krone Reefer Body Semi Trailers in a move to modernise its growing supply chain busiLogistics News ME | December 2016 | 25

Cover Story

Global scale In June 2016, at the Global Green Growth Forum (3GF) Summit in Copenhagen, the UN announced a global standard to at least measure the problem: the Food Loss and Waste Accounting and Reporting Standard (FLW Standard).

The mechanism is a set of global definitions and reporting requirements for companies, countries and others, to consistently and credibly measure, report on and manage food loss and waste. The standard comes as a growing number of governments, companies and other entities are making commitments to reduce food loss and waste.

According to the UN, an estimated one-third of all food is lost or wasted worldwide during transportation and storage from where it is produced to where it is eaten, even as more than 800 million people are undernourished. In addition, food loss and waste globally costs up to $940 billion per year.

Meanwhile, food loss and waste generates about 8% of global greenhouse gas emissions. Estimates indicate that if it were a country, food loss and waste would be the thirdlargest greenhouse gas emitter behind China and the United States.

“This standard is a real breakthrough,” said Andrew Steer, president and CEO of the World Resources Institute.

“For the first time, armed with the standard, countries and companies will be able to quantify how much food is lost and wasted, where it occurs, and report on it in a highly credible and consistent manner.”

He noted that there is simply no reason that so much food should be lost and wasted: “Now, we have a powerful new tool that will help governments and businesses save money, protect resources and ensure more people get the food they need,” Mr. Steer added.

The system will be far from fool proof with many organisations and municipalities unsure of where in the supply chain the highest loss occurs.

But it is also backed with the Consumer Good Forum members’ pledge to reduce food waste in their own operations by 50% by 2025.

One thing is clear – the supply chain is broken and it’s imperative we learn how to fix it.

26 | Logistics News ME | December 2016

ness. The 15-metre long semi-trailers feature a telematic system that allows Massar and its customers to gain deeper insight and visibility into fleet operations, tracking the efficiency of shipments, as well as the condition of the shipments contents.

Collected data includes engine and driver performance, trailer temperature and payload condition, door openings, tyre pressure, travel time, and route progress. In case of irregularities, fluctuations or unexpected events, an immediate alert is sent directly to the user’s PC via SMS, e-mail, or a popup window.

Melvin explains: “Real-time information is the real deal in managing F&B fleets effi-

ciently. Data on temperature deviations during transit can only be retrieved at the end of a transport leg, by which time the cargo may have been subjected to temperature fluctuations resulting in wastage. Telematics can alert management and drivers immediately when the temperature in the trailer is too low or too high so that they can address the issue there and then.”

The Mercedes-Benz Actros Fleet was employed by German food firm Böhmer, which purchased 42 trucks to transport its potatoes via its subsidiary Böhmer Transport.

MD Frank Zimmermann, recalls: “Suddenly, not only did we have a presence of our own on the road, with vehicles sporting

Cover Story

it will last long enough to give us a double life. The suppliers of the vehicles also understand the crucial importance of maximising uptime. If ever we have an issue that cannot be resolved at base – which doesn’t happen very often – they will take the vehicle back into their factory, work on it overnight and get it back to us within a matter of hours.”

Nadia Abdul Aziz, president of NAFL and partner and MD of UNASCO

The figures speak for themselves, and highlight the need for the industry to look at responsibly reducing food waste throughout the supply chain process

the Böhmer design; we also had much better access to the entire process chain, which has also had a sustainably positive impact on economy. All trucks – most of them with a GigaSpace drivers’ cabin – feature the complete, top range of equipment available.

In the UK, Pilgrim Foodservice uses a combination of 13.5- and 16-tonne Mercedes-Benz Atego chassis – vehicles assigned to intensive, multi-drop delivery duties. Pilgrim supplies some 6,500 frozen, chilled and ambient food lines, as well as cleaning and disposable products, to an expanding portfolio of customers.

The 6.6m and 7.6m bodies feature twin compartments for frozen and chilled/ambi-

ent product and powerful, quiet-running Thermo King T-1000R and T-1200R multitemperature refrigeration systems.

Enhancing operational flexibility, the bodies have movable bulkheads incorporating internal doors. The design also includes additional features specified to minimise temperature creep between compartments and restrict any loss of cooling arising from frequent openings of one or more of the triple rear doors, which have Planarctic strip curtains.

Pilgrim’s latest vehicles are equipped with Thermo King technology that allows operations staff to monitor vehicle temperatures remotely in real time and where necessary intervene to adjust the fridge output from a computer back at base.

MD Peter Bateman says: “It’s all about ease of operation and maintaining temperature integrity. We can see when the doors are opened and for how long, and if necessary make finely-tuned adjustments to the cooling system from the office.”

He adds: “This equipment is manufactured to a very high standard and we know

In practice Implementing a combination of best practices which has driven results in other countries, one company in Dubai is aiming to tackle the local problem of reducing food waste one delivery at a time.

4Corners is a food distribution firm working with retail and hospitality clients to deliver the items and brands they need, on time. It has pioneered the Green Supply Chain concept to regulate and monitor its carbon footprint and overall efficiency. The distributor moved to a new facility in 2014 and created a bespoke centre designed specifically to meet the needs of a sustainable food supply chain.

Commercial director, Mike Walden, explains: “We had undertaken a six month study on the green supply chain with the Emirates Academy of Hospitality Management, and we applied all of the relevant findings into the structure and operation of the new facility. This takes into account so many aspects of the supply chain and there is nothing else like it in the UAE at the moment from a green perspective.

The facility boasts mobile racking, so there is only ever one aisle in the warehouse; motion sensor lighting to prevent careless use; recycled plastic pallets instead of wood; Ec-H20 water cleaning system that uses 70% less water; Euro 4 standard vehicles that produce reduced emissions; electric heating mats in the freezers to prevent ice build up and reduce energy use; electric forklifts producing zero harmful emissions (vs diesel); and an electronic barcoding system and goods delivery system, removing all unnecessary paper from the supply chain.

Walden adds: “Our business model can remove 90% of the carbon footprint of the majority of food businesses (or non-food in fact) across the UAE. It is a ‘one stop shop’, one order, one delivery, all products; as we operate our supply chain with all multitemperature vehicles.”

“Our new facility fully supports the green initiative from our state-of-the-art warehouse managmenet systems driving customers electronic ordering right through to night time deliveries; our customers can Logistics News ME | December 2016 | 27

Cover Story

In Numbers

3.27 million tonnes of food is wasted every year in the UAE

$3.7bn cost of food waste in the UAE

1/3 of food is wasted in transportation and storage

5% of the problem could be relieved by high efficiency food logistics

38% of all food in Dubai is waste every day, increasing to

55% during Ramadan

28 | Logistics News ME | December 2016

Mike Walden, 4Corners

While there are a number of ways to reduce food waste, the National Institute of Health suggests that food manufacturers and retailers turn to the supply chain for food waste solutions even see “live stock” of their products on their phones 24/7. What needs to happen next is the operators who can affect the environment should do something about it.

How many times have you seen 30 or 40 lorries queueing up to deliver products to a hotel that could arrive on one vehicle?”

While the changes made to in-house operations by one company have created significant gains, it is worth taking a wider look at the food import and distribution sector as a whole. Too many suppliers not only means competitive pricing but inefficient delivery also. Certain products are sold cheaper by certain distributors, forcing chefs and retailers to purchase from multiple suppliers. Specialist suppliers also add to the loading bay traffic.

Over the pond, US-based Penske Logistics, urges retailers and distributors to work together to create an agile supply chain and avoid a situation where shops buy more than they might sell.

“Within the food and beverage industry, especially within the cold chain, time-sensitive deliveries, lean supply chains and product lifecycles demand that companies

can adapt quickly to changes as they arise.

With a greater focus on fresh items, the market is asking for more cold chain flexibility,” says Bob Daymon, vice president of transportation management operations for Penske Logistics.

Other tips from the firm include monitoring temperatures to increase shelf life and an integrated approach to business management, to ensure the entire company is working together rather than in silos.

“Food waste is a costly issue for those involved in the food and beverage industry, and minimising waste can improve profits while also benefiting the environment.

While there are a number of ways to reduce food waste, the National Institute of Health suggests that food manufacturers and retailers turn to the supply chain for food waste solutions,” Daymon adds.

The changes required to reduce the UAE’s food waste problem demand investment and a new way of thinking. They will transform business but not before businessses must transform themselves.

According to the calculations by Massar Solutions, the 3.27 million tonnes of food that is wasted in the UAE annually is equivalent to 136,250 trucks and while this cannot be completely eliminated, Melvin is keen to stress that even reducing its scale will deliver significant economic, social and environmental benefits. Massar owns almost 10,000 vehicles and manages nearly 7,000 more, belonging to customers across the UAE. The focus, as Melvin has explained previously, should be placed just as firmly on driver education as the equipment itself and not just in operating the moving vehicle. Drivers and warehouse operators must also be educated in food storage. For example, small refrigerated vans which contain biscuits and chocolates are often switched off during the night and re-started in the morning for distribution rounds, causing temperature fluctuations and fat bloom in products like chocolate and cheese.

Without a strong sense of purpose and a cross industry approach to standards, reducing the UAE’s food waste problem, even by 5%, will prove challenging. It requires a complete overhaul of current practices, investment in equipment and training of staff – three points which business can be reluctant to spend on. However, if the industry can self-regulate, allowing cost efficiencies in greener transportation to trickle down to the client, perhaps the country’s food manufacturers can be convinced to go green after all.

13-14 DECEMBER 2016, RAS AL KHAIMAH

Bringing investors and financiers together with key RAK entities to explore real investment projects and venture opportunities in the Emirate

UNDER THE PATRONAGE & WITH THE PRESENCE OF HH SHEIKH SAUD BIN SAQR AL QASIMI, SUPREME COUNCIL MEMBER & RULER OF RAS AL KHAIMAH

FORUM HIGHLIGHTS HIGH-LEVEL EXPERT SPEAKERS

SECTOR SPECIFIC BREAKOUT SESSIONS

UNPARALLELED NETWORKING

Gain first-hand information and knowledge from our expert line-up of speakers on investment projects that are underway and planned within the Emirate

Targeted discussions on key economic sectors: Infrastructure Development – ports, airport, utilities

Mingle with key officials and executives from local government and private sector entities in Ras Al Khaimah as well as with regional and international senior level industry practitioners, financiers and investors

Manufacturing & Production Hospitality, Tourism & Real Estate

DEDICATED ONSITE EXHIBITION

SITE VISITS

Meet local entities showcasing the best of RAK’s investment offerings

Gain an even greater perspective of all that Ras Al Khaimah has to offer by participating in site visits to selected locations

ARRIVE... CONNECT… CAPITALISE….

STRATEGIC PARTNERS

SILVER SPONSORS

BRONZE SPONSOR

SUPPORTED BY

OFFICIAL MEDIA PARTNER

H O ON RAK Media Office Government of Ras Al Khaimah

OFFICIAL TRADE MEDIA PARTNERS

CONSULTING PARTNER Two upper tringles (orange): ff6f20 (Pantone 1585C) Two lower triangles (blue): 00338e (Pantone 287C)

SME ENHANCEMENT PARTNER

No.1 SME Platform

MEDIA PARTNERS

The Future is Now!

Give your brand an unfair advantage

SUPPORTING PARTNERS

The voice of RAK business community

Register at www.rakfif.com | #RAKFIF Quote code BNCRKF16 for your free entry pass before 21st November

Country Focus

B

Following a period of sustained growth, Bahraini officials are touring the world on the hunt for new trading partners. But without investment in education and jobs for nationals, the efforts could be undermined. Logistics News ME reports

y keeping a keen eye on business, Bahrain has cultivated a robust and lucrative logistics industry over the last decade. Ranking 18th freest economy in the world, Bahrain is also the first in the MENA region to appear on the Heritage Foundation’s Index of Economic Freedom. The kingdom is also keen to incubate new businesses and provides free and easy access to neighbouring countries from its seaport, airport and logistics processing zones, offering value for money on operating costs. In 2015 KPMG confirmed the cost of doing business in Bahrain to be 35% and 43% lower than that of Dubai and Qatar respectively.

Further benefits exist in the form of Bahrain’s trade deal with the US. The

32 | Logistics News ME | December 2016

Free Trade Agreement (FTA) enables GCC countries to sign FTAs with the EU, China, Japan, Iraq, and Australia in order to expand into the region and trade internationally. Further to this, and in addition to other factors, in 2014 the logistics sector contributed 7% to the kingdom’s GDP. Supporting infrastructure includes the $360m Khalifa Bin Salman Port, which started operations in April 2009 and has since offered world-class services to shipping lines, freight-forwarders and beneficial cargo owners facilitating growth for the local economy and enhancing supply chains for the Northern Gulf. It is positioned between the airport and King Fahad Causeway.

Bahrain International Airport (BIA) hosts 27 commercial airlines and 11 cargo

airlines, and provides sophisticated facilities for logistics operators. Located in close proximity to the Bahrain Logistics Zone (BLZ) and the Khalifa Bin Salman Port, it can handle 27 large cargo planes at any time and is the Middle East hub for DLH in the region.

Salman Industrial City, which opened in January 2010 includes the Bahrain International Investment Park (BIIP), Bahrain Investment Wharf, and the Hidd industrial Zone. Located adjacent to the Khalifa bin Salman Port, BIIP is also host to a number of leading international companies, including Mondelez International, MTQ Corporation, BASF and Siemens.

The final piece of the jigsaw is the Bahain Logistics Zone (BHZ) occupying 100 hectares of prime real estate close by

Country Focus

Khalifa bin Salman Port (KBSP) Bahrain’s newest and biggest. It is the region’s first boutique logistics zone offering a high quality environment to companies that meet its tenancy requirements, according to its website.

The result of such infrastructure is resilient economic performance. Bahrain EDB reports that in Q2, growth was once again led by non-oil sector whereas the oil sector actually experienced a small 1.7% YoY contraction. This followed an unusual Q1, when growth was to a large extent attributable to one-off oil output gains.

Headline growth in Q2 was 2.6%, down from the oil-led 4.5% in Q1. This translated to 3.5% YoY during 1H16 as a whole Bahraini growth normalised in Q2 and non-oil growth picked up significantly.

The pace of growth in the non-oil economy accelerated markedly from 2.7% YoY in Q1 to 3.6% in Q2. This figure was ahead of the preceding three quarters and reflective of the continued activation of a large infrastructure pipeline. The fastest growing sectors in Q2 were Social and Personal Services, Construction, and Financial Services “The summer months have been characterised by relative continuity for the global economy while the GCC region has faced renewed oil price volatility and fiscal consolidation efforts. While this has exerted some downward pressure on growth, the non-oil drivers appear generally resilient and several indicators point to some increase in activity,” the organisation said in a statement.

According to Bahrain EDB $694 million has been pledged to ongoing

Bahrain has some of the most competitive operating costs in the region, minimal restrictions on foreign investment and ownership and a tried and tested regulatory environment, all of which has created a highly favourable environment for international businesses. investment to infrastructure projects, which included the reconstruction of the Sitra crossing (completed in 2011) and the Shaikh Khalifa Bin Salman Highway, adjacent to Mina Salman intersection project. In August 2014, the Minister of Works, H.E. Engineer Essam bin Abdullah Khalaf, announced the Ministry’s plans to study the construction of a fourth causeway to link Muharraq and Manama.

“Bahrain continues to position itself as the premiere logistics hub in the Northern Gulf due to its location and

superb infrastructure opportunities that will continue to improve as part of Bahrain Economic Vision 2030,” Vivian Jamal, the executive director of business development at the Bahrain EDB told Oxford Business Group.

However, for a tiny island to sustain such growth, efforts must be made to reach out to major powers.

Global ties Owing not only to its strong and immediate links to neighbouring countries, but also the number of foreign business that have adopted Bahrain as their regional base, the kingdom enjoys strong links to major global economies.

These relationships are driven by Bahrain EBD, which works to attract investment to sectors that offer competitive advantages for investors such as financial services, ICT, tourism, manufacturing, transportation and logistics services and to create highquality jobs for Bahrainis.

This year it has been links with China bringing good fortune to the kingdom.

Non-oil trade between the nations was valued around $1.8m in 2015 with the import of mechanical and electrical equipment and export of chemicals, the strongest sectors.

The China High Trade Fair was attended by Bahrain at the invitation of His Excellency Xu Qin, Mayor of Shenzhen. In September of this year, Qin visited Bahrain to meet with Chinese businesses and discuss cooperation on a number of sectors of mutual interest, including financial

Country Focus services, transport and logistics. Shaikh Hesham bin Abdulrahman Al Khalifa, Capital Governor and Head of Bahrain’s Business Delegation was quoted as saying at the time: “High-level visits such as this one between our two countries emphasise the continuous efforts of officials to strengthen bilateral relations and to encourage mutual cooperation, which will in turn be of great benefit to the people of both Bahrain and China. The visit reflects our mutual desire to expand cooperation on all levels. Our long-established bilateral relations are based on strong and solid foundations, and this visit gives us the opportunity to increase the level of cooperation between the cities of Shenzhen and Manama. It also allows us to share experiences and establish a prosperous partnership between Bahrain and China, which will flourish due to the shared strategic visions of our two countries.”

2016 marked the third consecutive year a Bahraini delegation has visited China and Hong Kong to strengthen business ties. Last year Bahrain was the guest country of honour at the China International Fair for Investment and Trade, and the delegation visited several of China’s commercial centres, signing a total of 15 agreements. In 2014, a trip to China resulted in the signing of 13 MOUs in 10 days. In addition, Bahrain’s inward investment agency has signed numerous deals with Chinese companies to establish operations since.

Chief executive of Bahrain EDB, Khalid Al Rumaihi, said in a statement last year: “Huge opportunities can be made possible by closer cooperation between China and the GCC, two of the world’s fastest growing emerging markets.

“Bahrain has some of the most competitive operating costs in the region, minimal restrictions on foreign investment and ownership and a tried and tested regulatory environment, all of which has created a highly favourable environment for international businesses.

“The EDB looks forward to assisting many more Chinese companies to set up in Bahrain and take advantage of the benefits on offer here.”

Another country of significance is Germany. Also visited by Bahrain EBD the kingdom is keen to promote its business friendly environment to German firms. In November 2015 Bahrain and Saudi Arabia welcomed a delegation of five German companies, 34 | Logistics News ME | December 2016

Bahrain economic outlook 2015

2016f

2017f

2018f

Real GDP growth, %

2.9%

2.8%

2.0%

2.0%

Non-hydrocarbons sector

3.6%

3.2%

2.4%

2.3%

Hydrocarbons sector

-0.1%

1.0%

0.5%

0.5%

Nominal GDP growth, %

-6.8%

4.9%

6.6%

5.1%

Inflation (CPI %)

1.8%

3.8%

2.0%

2.0%

Current account (% of GDP)

-0.3%

-1.9%

0.1%

0.8%

Fiscal balance (% of GDP)

-13.0%

-12.3%

-9.7%

-7.9%

Crude Oil Arabian Medium (USD)

50

45

55

60 Source: Bahrain EBD

mostly SMEs. The trip was organised by GESALO and Mena Projektpartner and funded by the German Federal Ministry for Economic Affairs and Energy (BMWi) as part of their market access program for SMEs on the basis of a decision of the German Federal Parliament.

Iran and Iraq are also closely tied to Bahrain by sea, air and land and both countries are positioned to provide economic benefits to Bahrain as global trade expands.

Bahrain EDB says: “Investing in Bahrain means major commercial opportunities; GCC members increasingly trade with each other and cargo volume in the Gulf is steadily growing. More and more international companies are establishing here, creating a critical mass. The UNCTAD World Investment Forum ranks the Kingdom sixth globally for inward investment on a per capita basis, rising from 15th in 2012-2013. Bahrain’s transport and communications sector grew annually 9.8% 2000-2012, while its contribution to GDP in 2012 was 7%, up from 6.8% in 2011” The road ahead Not only in its domestic relations, but international affairs too, Bahrain is looking to make doing business as easy as possible, an approach not always favoured by its neighbours in the Gulf.

The kingdom aspires to become a hub for innovative and agile start-ups, as well as the most forward thinking of the larger companies who have established a base there.

Shaikh Hesham bin Abdulrahman Al

Khalifa, Capital Governor and Head of Bahrain’s Business Delegation told the media earlier this year: “Bahrain is aiming to operate as the start-up hub for the GCC region, and with more Chinese businesses on board, as one of the world’s fastest growing nations, it will drive robust growth for the tech sector in the GCC.” Oxford Business Group explains: “Between 2000 and 2012 the transport and communications sector was one of the three fastest-growing sectors in Bahrain, along with the service sector and construction sector.

The transportation industry is seen as vital to the kingdom’s goal to both double oil production and develop a more diversified economy with growth driven by the rise in the kingdom’s population, which between 2001 and 2010 grew from 660,000 to 1.2m inhabitants. Still, Bahrain’s transport industry is mostly run by locals as part of the country’s Bahrainisation process, which seeks to raise the number of Bahrainis in the local workforce” And it is in striking the perfect balance between international trader and provider of economic stability for Bahraini nationals that Bahrain will see a strong return on its investments. If however, it fails to utilise the opportunities created by the global economy and its own proximity to major trading nations to create jobs for its nationals, problems could arise. What the kingdom must invest in next is the wide ranging and future focussed education of its Gen Y nationals to ensure they have the right skills to step up to the challenge.

Porto Arabia Towers Doha, Qatar

Mall of Qatar Doha, Qatar

Viva Bahriya Towers Doha, Qatar

Qatar National Museum Doha, Qatar

If you can imagine it, we can manage it.

Hill International The Global Leader in Managing Construction Risk

www.hillintl.com 1.800.283.4088 www.hillintl.com Dubai Office: 971 4 227 0078 Doha Office: 974 4 435 8381 Corporate HQ: 800 283 4088

Š2014 Hill International, Inc.

For nearly four decades, owners and developers in the Middle East have turned to Hill International to manage their construction projects and programs throughout the region. Hill is proud to have helped our clients turn their most challenging visions into realities. We have participated in over 10,000 projects with a total construction value in excess of $500 billion, managing all phases of the construction process from concept through completion.

Hill is also the leading construction claims firm in the world, having helped resolve problems on some of the most complex projects throughout the Middle East and around the world. To minimize risk and maximize results on your next project, turn to Hill International

Technology

Connecting your Enterprise

After a busy month of exhibitions and showcases, Logistics News ME catches up with Rockwell Automation

T

he oil and gas industry has had more than its fair share of problems over recent years and businesses across the globe have felt the impact. But one company is looking to enhance the level and quality of data available to oil and gas companies to help them increase decision making and productivity.

Exhibiting at ADIPEC last month, Rockwell Automation showcased its ConnectedProduction solution, which allows for delivery of information from

36 | Logistics News ME | December 2016

upstream production assets to midstream and downstream facilities.

This means the complete scope of automation is now covered for oil and gas producers, assisting with several areas of production automation including artificial lift, chemical injection systems, power control, measurement, as well as turbomachinery and pump controls.

Users can also visualise and control production from the wellhead to the point of custody transfer, either on site

or from miles away. Rockwell Automation’s Thony Brito, regional sales manager, vMonitor, explains: “There’s no doubt that oil and gas will continue to have an important role to play, but it’s also clear that with new fracking methods, ever more stringent regulatory frameworks and global commitments to more sustainable sources of energy, the Middle East’s traditional resource providers in oil and gas are under more pressure than ever before. This has all led to a change in

Technology

FactoryTalk Analytics for Machines launched In November 2016, Rockwell Automation announced Factory Talk Analytics for Machines cloud application, a new Microsoft Azure cloud-enabled capability that empowers equipment builders with information. As part of the company’s expanded Information Solutions strategy, the application provides access to performance analytics from deployed systems in order to gain valuable insight to support their customers. For manufacturers going through a digital transformation, this capability capitalises on connected technologies to help drive higher availability and output while reducing maintenance costs.

“The sophistication of plants today has made specialization and collaboration essential,” says Axel Rodriguez, SaaS/Cloud products manager, Rockwell Automation.

“Your manufacturing operations and maintenance teams have a lot on their plates. Allowing your equipment builders – who know their machines like the backs of their hands – to become collaborators in performance analytics can free up the best minds to focus on optimising entire lines, plants or applications,” he adds.

focus for oil and gas producers who are looking less towards investment in expansion and operational growth and turning instead to improving efficiency through optimisation.”

He continues to explain that the direct monitoring the solution provides helps achieve faster time to market, lower operational costs and improve efficiency, allowing for better decision making and faster communication from the wellhead to the enterprise level.

Brito continues: “Digital remote

monitoring is one of the most significant advances IoT achieves. This technology seamlessly integrates sensors, hardware, software and wireless connections to extract important operational information from multiple assets across oilfields and along pipelines.

Using information such as daily oil production and pump pressure, operators can continuously monitor current and historical operating conditions, troubleshoot any potential issues, and make process adjustments at

an earlier stage to help increase uptime — all without leaving their workstation, which can be hundreds or thousands of miles away from the physical site.”

But it isn’t just traditional oil and gas that will be looking for innovative technology solutions — shale, advances in deep water drilling and the connected enterprise have advanced the industry at a time when many perceive it to be struggling. While price cuts brought output cuts ramping up production in future may not be easy due to a lack of Logistics News ME | December 2016 | 37

Technology

skilled workforce and environmental and security pressures.

Brito adds: “These market forces have oil and gas producers jumping through hoops to meet the challenges. Upstream, midstream and downstream sectors are all under increased scrutiny for operational efficiency and performance.

For this industry, realising the vision of The Connected Enterprise has become a business imperative.

“The convergence of automation, communications and information technology (IT) is allowing oil and gas companies to create digital oilfields, pipelines and refineries.

“Smart devices embedded in wellheads, compressors, pump stations, and within refineries are yielding a new wealth of operational information,” he says, advocating the benefits wireless 38 | Logistics News ME | December 2016

technology can bring in delivering real time information.

Automation The Connected Enterprise was also on show at the Rockwell Automation Fair where more than 10,000 industrial professionals attended the 25th annual event in Atlanta, Georgia, hosted by Rockwell Automation and its PartnerNetwork members.

The event is the largest educational forum and trade show dedicated to industrial automation and information and delegates were looking to discover how a more connected industrial business can improve its ability to compete globally.

“The combination of technology innovation and application expertise is transforming industrial processes,

making it possible for companies to become more integrated and competitive,” says Blake Moret, president and CEO, Rockwell Automation.

“The Connected Enterprise brings together power, control and information solutions to respond to the increased demand for global productivity.”

This year saw a focussing of The Connected Enterprise discussion with the need to converge IT and operations technology taking centre stage.

Historically these are independent functions but today their convergence enables businesses to gather, analyse and transform data into actionable information for deriving tangible business outcomes, and making production safer, predictable and more sustainable.

Brito explains: “Rockwell Automation

Technology

has expanded its information-enabled offerings. This expansion is designed to help companies connect, manage, validate and optimise manufacturing and production with scalable analytics, information-driven solutions and collaboration tools. By digitally enabling machines, lines and plants through integrated control and information, customers will be able to transform their operations, yielding higher productivity and competitiveness.”

The 2016 Automation Fair featured more than 100 exhibits showcasing the latest innovations in automation. It also included nine industry forums, 19 hands-on labs and 93 technical sessions designed to expand attendee knowledge and use of the latest control, power and advanced manufacturing and enterprise information technologies.

The future of connection Regardless of what the energy mix comprises in future, the need to connect engineers and other team members to their supervisors will remain key. The challenge will arrive in the form of change management of workforce attitudes. Before the first generation of digital natives is welcomed to the workforce, current staff must be trained.

As Beth Parkinson, market development director, Rockwell Automation, wrote last year: “It’s human nature to be wary of change — because change requires effort, it’s uncomfortable, and the outcome is always uncertain. That’s why it’s vital to focus on corporate culture as you build a Connected Enterprise.

“Without the engagement of executives, engineers, and front-line

workers alike, you’ll never achieve all the improved productivity, security, and real-time information benefits you could via a 21st century information technology/operations technology (IT/ OT) infrastructure.”

She advises to identify and form objectives for the change; to ensure communciation is clear and regular; that the workforce is appropriately trained and equipped; concerns are addressed; and that monitoring of success and communication of achievements continues.

Rockwell refers to The Connected Enterprise and IoT as what it calls the “next industrial revolution” — and it’s easy to see why revolution is an appropriate word. But as Parkinson notes, connection cannot happen without a culture for change.

Logistics News ME | December 2016 | 39

Viewpoint

Culture Triumphs Strategy

Prakash PK Menon writes about the intricacies of company culture and how imposing new cultures is not always the answer

G

reat companies not only focus on below the line (BTL), but also on the above the line (ATL). BTL is about cost cutting. ATL is usually about the culture and the people within the organisation. Due to the fact that we live in such a short-attention-span environment, what tends to happen is that everyone wants to see results the very next day. Stakeholders want to see results in 12 months, because that’s why they have invested. It’s the proverbial instant coffee syndrome. But, by being governed by factors like instant profit, they aren’t able to really emphasise on the next five years and beyond; and how

40 | Logistics News ME | December 2016

they can grow their brand and their company into something really magnificent. And why does this happen? They are obviously scared.

The fear factor comes into play because there’s so much pressure from all the stakeholders.

Companies usually buckle in to this pressure, and are sometimes forced to cheat the system. What happens in the process is disengagement with people.

When it comes to transformation, true transformation happens with the people. If you start letting go of your good and capable people, or they may even leave on their own, the culture in your organisation will be formed only

around three or four people at the top of the organisation that will be driving it. The rest of the workforce will become simply numbers. And this results in disengagement.

Michael Henderson, a corporate anthropologist, and many others, have gone on to talk about the fact that culture is eight times more powerful than strategy. Strategy is important, but culture is even more important. Culture will have strategy for breakfast, in short.

If you actually don’t get your culture right, forget the strategy in the first place.

Because you need to think: who is driving the strategy? Plus, you don’t only have one culture in an organisation...

Viewpoint

Organisations and boardrooms are like a tribe. Basically, what does the CEO mean? C stands for chief, so that’s like in a tribe. Executive has to do with strategy, and officer is about the structure. Hence, this culture exists in the boardroom, as well. Then, if you take departments, each one will have its own culture, depending on the people that are driving the teams. Which means multiple cultures; and you need to work out how to bring all these cultures together. It becomes even more challenging when companies go international, to global markets. You can’t just impose going to another company, in another country, and say: “This is what I did back in Australia, and this is the way I’ve done it, so you should do it this way because I think it is a successful model.” No, sorry, you have to really understand the culture, because the local religion plays a part, the native language plays a part, and so on.

To understand better the whole idea of taking the culture into account, there is this classic example of the infamous Walmart failure in South Korea. They went in there with a very American

You need to work out how to bring all these cultures together. It becomes even more challenging when companies go international, to global markets. You can’t just impose going to another company, in another country

model and it didn’t work. Just like a number of other international retailers that have also gone to South Korea, they haven’t been able to make a cultural translation to take their business model and make it work within a South Korean culture.

Introducing the checkout counter in Japan was a failure, as well. The space for the checkout person is very small, as designed after the western model. But in Japan, there is this etiquette of bowing when meeting other people. It doesn’t matter who they are, you pay respect to the other person. In this particular case, two senior people came to the checkout counter. The older the other person, the lower you have to bow. So the checkout worker actually banged her head on the counter, because she couldn’t go any further down. That became a big issue for Japan regarding this checkout counter model. The morale of the story is that culture is something you can’t ignore.

Get the culture right – no matter how many types you may have within an organisation. The rest usually falls into place.

Logistics News ME | December 2016 | 41

What Fleet Managers Need To Know About InCab Video Monitoring Brodie Von Berg, head of sales and marketing, Middle East and Australasia, MiX Telematics, writes about the potential benefits of in-cab video monitoring

42 | Logistics News ME | December 2016

Viewpoint

A

ccording to the Saudi Gazette, there were 526,000 road traffic accidents in Saudi Arabia in 2015. The World Health Organisation, estimates there are nearly 1.25 million deaths from road crashes every year. The estimated total cost of these crashes: $103 billion. Clearly there is more fleet managers can be doing to ensure the safety of drivers and those with whom they share the roads. New advances in driver behaviour management solutions can significantly reduce preventable crashes and can also help managers and investigators determine the actual causes of crashes that do occur. In-cab video monitoring is one such advance that is becoming the rule, not the exception, in commercial vehicles, significantly enhancing a company’s overall fleet management strategy.

What is in-cab video monitoring?

In-cab video monitoring systems typically feature both forward- and cabfacing cameras that capture video footage and sound, allowing for visual acuity at the time of an event. Most systems capture a short video clip, several seconds in length, that show what was happening outside and inside the cab when a driving event was triggered.

Driving events are configurable and typically include the following driver behaviors: corner handling, speeding, harsh acceleration and deceleration.

Some newer video-based driver behaviour solutions capture a loop of up to 72 hours of continuous trip video. This is useful particularly when video evidence is needed even when a driving event is not triggered. Fleet, safety and risk managers can retrieve video segments as needed to gain insight into what happened before and after an event that occurred during this 72-hour period.

Consider a common scenario in which one of your company’s vehicles slaps mirrors with an oncoming truck. This would not typically trigger a driving behaviour event in most systems, but with the 72-hour rolling video, managers can determine if their driver or the oncoming vehicle was at fault.

New advances in driver behaviour management solutions can significantly reduce preventable crashes and can also help managers and investigators determine the actual causes of crashes that do occur. In-cab video monitoring is one such advance that is becoming the rule, not the exception, in commercial vehicles, Issues such as texting or speaking on a mobile phone can also become more readily visible. If, for example, someone called in a concern about this type of activity, managers could refer back to video recordings to see what exactly happened.

How can the video recordings be used?

Providers of video-based driver behaviour solutions offer different approaches to managing video footage.

Some provide a managed service where the vendor reviews the videos for customers and determines which videos should be viewed. These videos are then sent to the customers, sometimes with descriptive write-ups detailing possible concerns.

Other solutions are integrated with fleet management software for evaluating driver behaviour and overall fleet efficiency. With a fully integrated solution, video can be automatically appended to driver profiles for easy coaching, and tied to reports depicting specific triggered events. It puts the video information right where the user needs it when reviewing driving behaviour and assessing fleet risk.

It is important for fleet managers to craft and publish a video monitoring policy when their fleets adopt in-cab video monitoring – to help drivers understand how video will be captured and used and help assuage driver fears that the videos are being used to spy on their activities.

For instance, one key element in making drivers comfortable with in-cab video monitoring is your assurance that video will only be captured when a driver is driving the vehicle.

How does in-cab video monitoring help fleets?

There are four main benefits: Driver coaching and training Video is useful not only for accident investigation, but also in curbing unsafe driving behaviours such as speeding, harsh acceleration, hard braking and corner handling. When managers integrate in-cab video monitoring with fleet management, they can include video in driver safety scoring reports. This can help to educate drivers about safe driving behaviour and support them in learning how to improve.

Post-crash analysis Video adds an important element to postcrash analysis, giving managers unprecedented insight (and irrefutable evidence) into what occurred in the cab and around the vehicle at the time of an incident. Videos can be viewed alongside a timeline, adding richer context to incident scenarios for fleet managers, many of whom have shared stories about the importance of this video footage in determining the true cause of an incident.

Crash prevention and reduction When video is integrated with a fleet management solution, fleets can significantly reduce the frequency and severity of crashes. Fleet management solutions constantly monitor driving behaviours and coach drivers in real-time when these unsafe events are triggered.

This might be a set of beeps, verbal cues, and/or visual cues. The coaching is intended to prompt drivers to selfcorrect their behaviour.

Logistics News ME | December 2016 | 43

Viewpoint Most fleet management solutions also have driver-scoring reports to rank drivers based on the number and type of events triggered. Video can be attached to triggered events listed in these reports, making it easy for managers to sit and review driving habits with specific drivers. Coaching drivers and enforcing a company’s driving policies are key to the prevention and reduction of crashes.

Crash prevention and reduction When video is integrated with a fleet management solution, fleets can significantly reduce the frequency and severity of crashes. This is primarily due to improved driver training. Most fleet management solutions have driverscoring reports to rank drivers based on the number and type of events triggered.

Video can be attached to triggered events listed in these reports, making it easy for managers to sit and review driving habits with specific drivers. Coaching drivers and enforcing a company’s driving policies are key to the prevention and reduction of crashes.

Subrogation of insurance claims Beyond improving driver training, video

knowing the video will exonerate the company from fault.

Insurers understand the value of incab video solutions, especially those integrated with a fleet management solution. They understand that fleets utilising these tools reduce their incident rates, and they appreciate the video evidence that supports subrogate claims.

This often results in the fleet receiving reduced insurance rates.

Brodie Von Berg, sales and marketing head Middle East and Australasia

helps companies quickly determine if they are at fault or not in the case of a crash. This information is very useful when determining how best to handle claims, settle quickly to reduce settlement cost, or fight the claim

Embrace technology Adoption of fleet management systems is growing due to their ability to improve compliance, efficiency and safety.

Integrating video into your overall fleet management strategy is an excellent way to strengthen the safety portion of the equation.

While U.S. fleets tend to be extremely safety conscious, there are still many fleets relying on older, less intuitive fleet management technology, the old 1-800 “how’s my driving” bumper stickers, or doing nothing at all to monitor unsafe driving behavior. If yours is one of them, it’s time to explore some new options. Incab video monitoring has become an important element of fleets’ safety improvement strategies.

Telematics Trends for 2017 , by Mix Telematics Integrated in-cab video will go mainstream In-cab video fully integrated with fleet management telematics solutions provides valuable insight when it comes to driver performance and safety. More fleets will be seeking an integrated full featured telematics solution supporting video, not only to assist in accident investigations and claims, but also to help train their drivers and assist with improved driver behaviour. For this to work well, having the in-cab video integrated into the telematics system is key. As video becomes more of the norm for fleets, it will be a must-have tool to protect drivers and the fleets during accident investigations and improve safety for everyone.

Analytics will be essential it’s all about the data and how to understand it to make more informed, smarter decisions for the fleet. In 2017, fleet managers will expect to find deeper, more actionable intelligence 44 | Logistics News ME | December 2016

from all of the data created from their fleet management systems so they can improve efficiencies, lower costs and increase driver and vehicle safety.

Pulling data easily from multiple sources, analysing the data for actionable takeaways, and being able to create customisable reports, graphs and dashboards to share will become more in demand from fleet managers.

Non-motorised asset tracking will be a priority Tracking valuable assets like generators, storage tanks, pumps and light towers are going to become more important to fleets in 2017. As fleets look to improve asset utilisation and reduce loss, they will turn to technology that can easily capture the whereabouts of these assets, including when they were last spotted.

Plotting on maps and/or generating reports with the last-known location and date and time stamp of the tagged asset will help fleets improve their asset

utilisation and save money. This will move from a “nice have” to a “must have” for many fleets Service will be king As product features across equipment providers become commoditised, what’s going to make the difference is the type of service providers offer. For instance, most fleets only utilise approximately 50% of their telematics system, when they can be getting so much more out of their investment. Telematics systems providers need to continue to show fleets how to get the most out of their systems – whether it’s for safety, fuel economy or compliance – ideally all three. The days of just selling the system and walking away are really over; for example, MiX Telematics offer Service for Life because we believe it’s important to offer service way beyond just the implementation stage, but as part of a best practice to continue to show fleets how to get the most out of their system and extend ROI opportunities.

GETTING CLOSER TO THE TOP...

Getting closer to the top of the tallest mountain in the UAE will soon be a lot easier, thanks to the fleet of Volvo construction equipment used in the building of the road to the Jebel Jais mountain. When it’s finished, the route will run from Ras Al-Khaimah right to the 1,910 metre summit. The road has already become a popular destination for motoring enthusiasts, who like to show off what their machines can do. But when the road runs out, that’s where the Volvo VIDEO http://goo.gl/FPsU43

operators show off their machines. And it’s impressive to see what they can do. If you want to get closer to the action, scan the code and watch the video.

Building Tomorrow.

Viewpoint

The Rebound of Retail Frederic Zielinski, general manager, Swisslog Middle East, writes about changing consumer habits and the response from the e-commerce and logistics industries

I

n an increasingly digitally-driven world and with the huge rise in e-commerce over the past decade, most people would assume that physical retailers have felt a negative impact and a reduction in sales. However, as the Chinese government reports a 10% growth in physical retail in China for 2015, high street retailers are also leveraging traffic from their online stores to their offline stores. Recognising the value of high street retail, some pure-play e-commerce businesses are even partnering with physical retailers they were once in competition with to increase overall sales without the need of a logistics service for the final mile.

Consumer habits are changing too, with a recent survey conducted by McKinsey showing that even in the most popular e-commerce categories, only around 10% of Chinese consumers stay online throughout the whole customer journey.

For example, customers for consumer electronics tend to visit a physical store to seek advice and get a chance to see the product first-hand before purchasing – a key factor contributing to the mid-life

46 | Logistics News ME | December 2016

crisis of e-commerce and the rebound of retail.

In the same survey, findings showed the majority of consumers see shopping as a way to spend time with family and friends, and many mall developers are capitalising on this by investing in large entertainment areas that include restaurants, playgrounds and cinemas. The same entertainment experience is not offered online, as it cuts out the need to travel to a mall to purchase items. Rebounding physical retailers are becoming wise to this, and adjusting their strategies to offer a unique experience that cannot be replicated online.

This has obviously had an impact on e-commerce; although it has strong growth, the findings of a recent report show that in some countries, the e-commerce market is starting to hit a plateau. In India, e-commerce sales saw an 11% growth in 2015, compared with a growth of around 30% in the previous year. If these consumer habits are replicated in other parts of the world, pure e-commerce players may be facing challenges in the future. In addition to

that, most e-commerce companies are finding it hard to turn profits, having accumulated losses over years, aiming for scale to reduce logistics cost per unit. Such unsustainable business practices will eventually drive some of the pure players out of business; those that previously ate from physical retailer’s slice of the pie.

Click&Collect - Bringing Two Retail Worlds Together Roland Martin, Swisslog’s Industry Segment Leader in E-commerce and Omni-Channel believes the market stabilisation is due to retailers providing better online services, like click-andcollect, and e-commerce companies failing to charge for the real logistics costs.

Says Roland: “Many online retailers are putting themselves out of pocket by only charging a minimal amount, if anything, for delivery and ultimately failing to provide a good service. Returns, for instance, are very often not taken into consideration, resulting in a logistics cost of around $50 per order returned. Due to this, it is now becoming increasingly popular for high street retailers to reduce

Viewpoint

the logistics costs coming from their online orders by influencing their customers to collect their goods in-store.

In addition, once these customers are in store, they are prone to impromptu purchases providing retailers an opportunity to up- and cross-sell.

“Similarly, some e-commerce marketplaces, such as Taobao and Tmall from Alibaba, are now seeking partnerships with retailers and local convenience stores to set up ‘click and collect’ services. The aim of this is to reduce the cost associated with delivering to customers’ homes straight from distribution centres and ultimately provide a better customer experience.”

Alibaba has also been using this method as a technique to educate new online shoppers to encourage more purchases.

Roland continues: “New collection points have been set up in rural areas of China, which avoids costly last-mile delivery as well as advertising the service and products to potential new customers at the same time.”

E-Commerce: Impacts and Consequences on Logistics E-commerce companies have had an impact on warehousing because where goods were usually wrapped on a pallet and sent to a store before being presented on shelves, items now need to be packaged individually and in higher frequency before being shipped directly to the customer. Due to the shifting customer demand, many retailers are trying to better utilise their existing infrastructure to give shoppers the ability to be in constant contact with a company through multiple avenues (omni-channel). This will also overcome the issues related to consumers becoming accustomed to paying as little as possible for delivery to their door by providing a more efficient customer journey and logistics service.

Some companies have separate warehouses to manage items of different sizes, and some have separate facilities to handle B2C and B2B requests. Roland explains how this can become complex when an order for several different item types comes in, or if a B2B warehouse has to deal directly with the customer.

“Customers may not understand the complexity behind their order and what processes are involved to pick, pack and consolidate the items. It may take several hours and additional cost for items within a single order to be brought together

Pure play e-tailers and physical retailers should take advantage of this and work together rather than being direct competitors. The industry could benefit from the continued investment in a customer experience before they can be distributed. Due to this, some B2C retailers have purposely ensured their website isn’t user-friendly because they aren’t ready to fulfil single orders yet. They are protecting themselves from harm to their retail channel caused by bad customer satisfaction.”

Roland believes that retailers need to operate a robust e-commerce website in order to provide a seamless omni-channel experience. It also means making all inventory available to all customers, wherever they shop.

Therefore, warehouse operations need to take the omni-channel requirements into account, if they store and deliver from separate B2B and B2C warehouse or combine both channels in one warehouse. It is also critical to have a state-of-the-art Warehouse Management Software in order to check product availability in realtime to replenish stores and provide trackand-trace to online shoppers.

“In order for omni-channel operations to be able to handle various channels, they will require more coordination, separate zoning and consolidation. They will need facilities for the storage and picking of small and bulky, fast and slow moving

items for B2C e-commerce orders, as well as the storage and picking of cases from pallets for B2B store delivery. In addition, B2C e-commerce requires value adding zones (e.g. for gift-wrapping) and the integration of returns handling. In case a marketplace also sells groceries and fresh foods, warehousing gets even more challenging as different temperature zones need to be established.

“Although warehousing operations get more complex when more channels are introduced, robotic applications can now handle the storing and picking of pieces and cartons, making warehouses more productive and shoppers happier. These applications also provide the required flexibility since they are moveable to wherever picking is needed, easily set-up and can work hand-in-hand with warehouse staff. The WMS act like the conductor of an orchestra and is key to ensure a smooth coordination of all the activities. Moreover, an advanced WMS is capable of interpreting customer and operational data to make delivery more efficient (forecasting) and the system more reliable (preventive maintenance).”

One ‘Commerce’ Industry Roland concludes: “While there’s no doubt that e-commerce has seen explosive growth in recent years and is here to stay, the vast majority of retail consumption in China continues to be done in stores, and more than half of retail growth last year came from offline transactions.

“Pure play e-tailers and physical retailers should take advantage of this and work together rather than being direct competitors. The industry could benefit from the continued investment in a customer experience that offers multiple channels for contact such as physical stores, webpages, social media, live webchats, mobile apps and telephone communication.”

If this business model is adopted across the whole industry, the retail and e-commerce worlds will converge and form one commerce industry that shares all channels of trade and communication.

Leveraging each other’s infrastructure such as warehousing is another means of making logistics more efficient. Finally, robotic applications and advanced warehouse management software that orchestrate omni-channel activities for faster and more accurate delivery while reducing operating expenses will ultimately benefit commerce and customers.

Logistics News ME | December 2016 | 47

Transport

A 6X6 version of the Woerth plant-built vehicle, Zetros 3643 AS, launched in the Middle East last year.

Muscle and might Logistics News ME tried out the new Zetros 3643 AS courtesy of Mercedes-Benz, at IAA Hannover 2016. Matthew Treanor gets behind the driving seat to find out why the vehicle, which launched in the region last year, is so popular

T

he Zetros was first launched in 2008 with military and extreme off-road applications in mind.

Check the original spec-sheets and you will see that it needed to be able to fit inside a C-130 Hercules air carrier and bears a rounded roofline suitable for the giant aircraft’s hold. It’s front-end also boasts a distinctive cab behind the hood design that one test driver shares has helped protect United Nation crews from mine impacts.

Put it in civilian clothes however and the two features ensure superior ride comfort, permanent car-like control and the possibility of using the roof to install equipment like radio antennae or a tachograph. Eight years on from its first introduction, you are essentially left with the best of both worlds: the robustness of a military-grade vehicle with the versatility of a commercial offroader. It is incredibly versatile too and is an able workhorse for remote

48 | Logistics News ME | December 2016

The Zetros was launched in the MENA region as a truck for civilian special applications, such as oil and gas and heavy construction in 2015. construction, mining and oil and gas operations. Two early Mongolian buyers of the 2733 A even outfitted the 6x6 version of the all-wheel drive truck with a marble-floored bathroom, bedroom and seating for eight passengers (as well as two flat screens and a gun safe). But that’s a different story.

Mercedes-Benz feels the Zetros is the culmination of its decades-long experience of developing its truck line.

In the Middle East, the German truckmaker describes its distinctive look as Abu Booz-style meaning a seriouslooking face, and up close it resembles a square-jawed muscle man.

The German company also says the Zetros demonstrates “its superb ruggedness and reliability wherever paved roads are scarce and extreme weather conditions are the norm. And the many attachment and body variants make the Zetros a professional which meets any goal you set for it”. With a new variant (the Zetros 3643 AS, more on that later) recently launched in the region, I wanted to take them up on the challenge.

Just a few minutes into a ride up, over and beyond the near-vertical cliffs of Mercedes-Benz’ test track in Oetigheim you realise why the Zetros tears over the

Transport parts other trucks would never reach.

Indeed, while Mercedes-Benz recently celebrated its 100,000th sale of the Actros in the Middle East only its Zetros boasts the grunt to be able to travel across the entire continent.

Mercedes-Benz has designed the Oetigheim track to replicate the many conditions its heavy trucks are expected to negotiate. It was almost disappointing then that the 1833 4X4 version of the Zetros negotiated the course’s rocky paths, 60% inclines and deep water pools (fording is rated at 0.8m and can be modified to 1.19m) with consummate ease despite a 2t payload - in admittedly dry ground conditions.

It helps that you have an engine capable of 326hp and torque of 1,300Nm at your disposal. In the hands of an expert driver able to run through the 2-stage gearbox like a Rubik’s Cube in the hands of Usain Bolt, you have a vehicle that can confidently take on most conditions.

At the heart of the Zetros’ driveline and transmission is the VG 1700 transfer case which has been -- and is -used on the all-wheel drives of the Axor and the Atego for on-, off-road and differential lock purposes. The off-road gearing has been tuned to a ratio of 1.69 from 1.403 on their beefed up cousin giving the Zetros a Gorilla Tape-like traction at low speeds and on steep inclines. At one stage at Oetigheim, the Zetros veered over a huge slope only to grab hold of the track beneath. Feeling 10t crawl to a near stop while peering over its nose was breath-taking.

Supporting remote oil and gas or construction operations in the Middle East pushes some drivers to exhaustion and here is where the Zetros excels.

Fitting the engine in front of the cab means it remains relatively steady when rolling over rugged terrain. MercedesBenz also believes that placing the driver so far back improves handling and keeps hazards away from the windscreen. You also gain easy access to the engine components with a further knock on benefit of a more even weight distribution between the axles than, say, placing the driver over the engine.

The Zetros is equipped with three mechanical differential locks as standard, and these were easily selected by the driver using a rotary control during the ride. (This rotary control shows the logical sequence in which the locks should be engaged as the terrain

becomes more difficult: first inter-axle, then inter-wheel at the rear and finally inter-wheel at the front.)

Most workshop managers will be pleased to learn that in terms of service, maintenance and repair, the truck uses standard Mercedes-Benz truck parts and components.

Clearance at the front also lends the vehicle a 34o approach angle gifting you extra space on steeper dunes and mountain tracks.

The test track was also a good opportunity to test the optional tyre pressure control system which showed reassuring deflating speed on the run, an important consideration when traversing sandy conditions.

A differential lock, which is controlled via a rotary switch on the dashboard, can be applied to both the rear and front axles ensuring nippy and continuous movement even in adverse conditions.

A 6X6 version of the Woerth plantbuilt vehicle, the Zetros 3643 AS, launched in the Middle East last year (it went into production in May 2015) for non-military applications. Christopher Grigoleit of Mercedes-Benz Trucks says: “The Zetros was launched in the MENA region as a truck for civilian special applications, such as oil and gas and heavy construction in 2015.”

The 3643 AS shares much of the same rugged structure of the base 4X4 model

tested in Germany, including its steelbased suspension, but features a more powerful 16-speed, 12l (listed displacement is 11,697ccm) Euro 3 engine. Torque has also been improved too with the 6 cylinder inline engine producing a muscular 428hp and 2,100Nm. Meanwhile the gross vehicle weight stands at 36t with axle loads of 9t possible on the front axle and 16t on each of the rear axle.

Several different PTOs (power takeoffs) are available for the Zetros range.

The manual transmission PTOs are gearbox-dependent and ‘shiftable’, which Mercedes-Benz claims is a lowcost variant for driving a hydraulic pump without an additional propshaft.

The installation of larger hydraulic pumps, should you require them, is possible thanks to the large centre distance of the spur gear drive. The automatic transmission PTOs utilise a deployment-oriented system solutions, and feature individually selectable PTO gear ratios, selectable available permanent PTO torque.

Cabin variants can be altered to suit two to seven passengers and strapping the extra axle to the chassis opens a number of possible variants and applications. As you might expect the crew cab is much larger than the standard ‘M-Cab’ with it extending as far as 2.53m in length compared to the Logistics News ME | December 2016 | 49

Transport

We received the first orders for the newly launched product shortly after the launch but the first larger volume deals we received during 2016 latter’s 1.92m. Both cabs have an interior width of 2.05m and a height of 1.4m.

As the run-out in Oetigheim proved, vibration on the inside remains low even in back-twisting environments and the visibility is excellent -- as you might expect from the elevated seating position. Once again, the cab-behindthe-hood design is an advantage, taking away the need for an engine tunnel and granting the cab even more room.

According to Grigoleit, the cooling system of the engine and the filters have also been designed for the extreme conditions in the MENA region.

The Zetros has been warmly received by a number of sectors since launch with the three-axle semitrailer truck able to be configured to suit the needs of fire and rescue teams, material transporters and much more.

The previous flatbed version of the truck peaked at a maximum weight of 27t but by supplying the tractor head into the region, Mercedes-Benz is able to meet demanding loads at far higher weights. In theory this is a truck that can pull a gross combination weight in excess of 110t (Mercedes lists it at 116t) placing it into the realms of mining and quarrying as well as some haulage operator’s needs.

The new Zetros received its major launch in the region at the Idex 2015 defence exhibition in Abu Dhabi, and according to Grigoleit, the truck is beginning to prove popular in the Middle East region.

“We received the first orders for the 50 | Logistics News ME | December 2016

The Zetros benefits from a smooth ride experience thanks to its all-wheel drive and cab behind the hood design.

newly launched product shortly after the launch but the first larger volume deals we received during 2016,” he says.

Grigoleit describes the buyers of the trucks as being diverse, suggesting the German automaker has succeeded in its goal of broadening its appeal. Mercedes is offering a boxed and tanker version of the truck to transport operators. Oil and gas owners can also use the truck for equipment transportation and mining operators may want to use it for material extraction.

For heavy construction purposes, the tractor head

can be hitched to a tipper as well as function as a dump truck. This could be your next truck if you are working on remote and demanding projects.

“The vehicle is designed for perfect off-road driving conditions with a special re-enforced chassis and extremely high ground clearance, big approach and departure angles. The vehicles are suitable and used for heavy construction operations in very challenging environment (off-road) with all kinds of bodies including tippers, drilling machinery and many others.”

Maxx Arabia Projects Solutions become one of very selective choice for many reputed EPC’s and International Forwarding Companies for handling their on-shore freight management services in Saudi Arabia and adjacent Middle East Countries.

We understand our scope of services and tailoring customized way of handling as per the project requirements. Our project logistics team have adopted excellent reporting system which helps our clients to monitor all work progress in single glance. We also provide consultancy services for IMPORT/ EXPORT customs clearance procedure at Sea/ Air and Border (s).

Our operation and engineering departments work jointly to make impossible movement possible.

Our team produce very detailed technical studies as far as OVERSIZED and HEAVY equipment movement is concerned. SAFETY and IN-TIME delivery is our MOTTO while handling any project consignment regardless SMALL or BIG. In 2016, Maxx Arabia performed excellent working progress in terms of handling project volume and also various Oversized and Heavy consignment handled for several projects.

We are strongly capable to handle any overland services by using support from our in-house offices in BAHRAIN/ DUBAI/ KUWAIT and OMAN.

“we want to be the best choice for our valued customers, always” Dammam, Saudi Arabia Corporate Office 6th Floor, King Khalid Street Dammam City, Kingdom of Saudi Arabia Tel: + 966 (13) 802 7139 Fax: + 966 (13) 843 9456

Bahrain Independent/ SBU Blue Busines Park Ground Level Near Bahrain International Airport, Bahrain Tel: + 973 13107817 Fax: + 973 33918801

Dubai Independent/ SBU Office # 406, Saeed Tower-2 Sheikh Zayed Road, Dubai (UAE) Tel: + 971 (4) 3555775 Fax: +971 (4) 3555776

Supplier news

SUPPLIER NEWS DC Pro Engineering awarded CSR Label

Terex adds Manlift Qatar to Genie network Terex Equipment Middle East L.L.C. has added Manlift Qatar to its existing distributors’ network in Qatar, strengthening its sales and service local coverage for Genie equipment.

The agreement enables Manlift Qatar to supply the full range of Genie equipment within the region, including Genie Aerial Work Platforms and Telehandlers as well as Terex Light Towers, through all channels within the Qatar market place. Manlift Qatar will act as a full service provider offering technical support and maintaining a stock of spare parts to help maximising equipment uptime.

David King, group MD for Manlift said: “By awarding the dealership to us, Genie has shown strong confidence in Manlift to strengthen the development of the access equipment market in Qatar and further represent the Genie brand in the region. The Manlift team is highly motivated to deliver the best customer experience and support the local market by offering a wide range of Genie aerials, after-sales service and parts.”

52 | Logistics News ME | December 2016

DC Pro Engineering UAE has been awarded the Dubai Chamber CSR Label for its “leading authority in the field of District Energy in the world and renowned sustainability leader in the field of Green Building MEP Designs in the region”.

The certification acknowledges international best practices in terms of strategies, policies, practices and implementation of corporate social responsibility and sustainability.

Receiving the award from His Excellency Majid Saif Al Ghurair, chairperson of the Dubai Chamber, Fouad Younan, MD of DC Pro Engineering said the achievement reflected DC Pro Engineering’s to its green principles.

“This award recognises DC Pro Engineering’s commitment to the wider the community, as well as our pledge to ensure sustainability in business and broader industry,” he said.

DC PRO has a growing interest in CSR initiatives and has already launched several breast cancer awareness and blood donation campaigns in addition to supporting entrepreneurship and empowerment within the region’s youth and female populations.

As part of its overall CSR strategy, DC PRO focuses on developing products and services that have a positive impact on the community and the environment. The company invests considerable efforts to develop energy efficient solutions for construction purposes and actively provides employment opportunities to young individuals in the form of internships.

Supplier news

GES secures freight Kässbohrer delivers Serco wins forwarding contract 150 curtainsiders to six year DXB contract for ABC SAL Allied Transport

Globe Express Services is to make shipments throughout Europe and the Gulf on behalf of ABC SAL, one of Lebanon’s premier shopping and lifestyle destinations.

Following an agreement between the two, products will be transported internationally with GES providing on time collection and storage, air and sea freight console boxes, account management and featured services.

GES already works with a number of retail conglomerates.

The solution designed for ABC is no different and includes a collaborative hybrid management model at the top of its operational structure to ensure a true partnership approach to the successful running of the operation.

The approach will utilise GES’s global expertise and the company’s SMART Solutions in the Gulf and Europe markets.

Mansour El Ashkar, supply chain manager, ABC SAL concluded: “Logistics is an essential part of our business and we have partnered with Globe Express Services to ensure a better collaboration with all our wholesalers and manufacturing partners. Through this partnership, we look forward to track all of our contacts, pricing, and distribution systems to gain unparalleled flexibility. Globe Express Services enjoys an excellent reputation in operational logistics and we are confident this will enhance customer service and boost our logistic cycle speed. Lastly, with optimised freight transmission, we will surely preserve our sustainability goals.”

Dubai-based Allied Transport has accepted an order of 150 tailor-engineered units of 15.5 meter-long maxima curtainsiders, K.SCX XL from Kässbohrer.

K.SCX XL, with a length of 15.5 metres, offers a capacity of 39 pallets, compared to a standard maxima curtainsider of 13.68m long, having a capacity of 34 pallets.

K.SCX XL sits on a KTL-coated chassis, providing a reliable protection against corrosion for over a decade.

Its gooseneck is designed in order to prevent any deflection originating from the longer chassis. In compliance with ISO 1726, K.SCX XL can couple with 4 x 2, 6 x 2 and 6 x 4 tractors.

For flexible and reliable load securing, K.SCX XL is equipped with easy-to-use K-Fix Load Securing System, providing 236 different strapping points, each with 2.5 ton capacity on a special side rave design.

The long-term cooperation between Kässbohrer and Allied Transport became possible with each party collaborating for the design of a tailormade transportation solution.

“Either individual configurations or standard solutions, we constantly engineer and deliver value for our customers, through lean production processes and our carefully selected R&D investments, focused on developing ideas, products and patents further,” İffet Türken, Kässbohrer’s Executive Board Member for Business Development.

Allied Transport is mostly active in the GCC region and North Africa and thus its requirements of a curtainsider are specific to the region’s regulations, which permits longer vehicles compared to standard vehicles commonly allowed in Europe.

FM services provider Serco Middle East, has been awarded a six year Facilities management (FM) contract with Dubai Airports to maintain and support a large part of Dubai Airport buildings and infrastructure.

The contract award covers a full range of FM services for Terminal 1 and 2, as well as other cargo and ancillary buildings at Dubai International.

Chris Garton, EVP of operations at Dubai Airports said: “We are delighted to extend our partnership with Serco through this new contract.

By combining Serco’s expertise in facility management with Dubai Airports’ drive and vision, I look forward to even higher levels of standards and customer experience across our airport infrastructure.”

Joe Boyle, managing director of Serco Middle East’s Integrated Facilities Services Sector states: “Dubai Airports has chosen Serco after an intense, detailed and highly competitive procurement process and we are very proud and excited by this new opportunity. Our partnership with Dubai Airports is long-standing and Serco Middle East continues to be a partner of choice as we excel in building strong client relationships founded on quality of service, innovation and trust. ” The Dubai Airports and Serco Middle East contract builds on Serco Middle East’s existing facilities management relationship in the education, energy, healthcare and public sectors.

Logistics News ME | December 2016 | 53

Diary

The month ahead

The key exhibitions, conferences and seminars coming up this month

Petrotech

4 – 7 December New Delhi

The PETROTECH series of International Oil and Gas Conference and Exhibition is a biennial platform for national and international experts in the oil and gas industry to exchange views and share knowledge, expertise and experiences.

7th International Saudi Transtec Exhibition and Conference 5 – 7 December Dhahran International Exhibition Centre, Dammam

2016 sees in the seventh uninterrupted edition of SAUDI TRANSTEC, the Saudi Arabia International Transportation, Materials Handling, Warehousing and Logistics Exhibition and Conference. Hosted every year in the Kingdom’s Eastern Province, TRANSTEC will take place this year from 5 – 7 December in Dammam.

Smart Buildings ME

6 – 7 December Intercontinental Hotel Doha

Smart Buildings Middle East will gather leading developers, consultants and contractors dedicated to develop smart buildings to address their challenges in achieving sustainable, connected and integrated buildings that ultimately lead to reduced costs, increased happiness and create a more dynamic and interactive spaces.

Critical Infrastructure Protectio Seminar

7 December Jumeirah Carlton Tower, London

Following the two day Kurdistan-Iraq Oil and Gas Strategic Confer-

54 | Logistics News ME | December 2016

ence, the Critical Infrastructure Protection Seminar is a uniquely focused meeting that brings governments, businesses and innovators together to help protect the critical infrastructure and build a safer Kurdistan Region

Smart Retail Forum

6 – 8 December Le Meridiem Airport Dubai

Retail in the Middle East is changing. With online channels widening the scope for retail opportunities and with online retailers challenging the status quo, the region stands poised to undergo rapid changes in the way people view and purchase goods. Faced with the rise of mobile internet browsing and the growth of interaction through social media and customers who demand more from their vendors, omni-channel shopping and digital marketing are opening up new opportunities in the industry.

At the e-Retail Middle East conference online retailers, brick-andmortar shops and eCommerce professionals from throughout the region will discuss how to maximise their revenues and make the most of new opportunities emerging in the industry

LogiSYM Dubai 2017

24 – 25 January 2017 Jumeirah Creekside Hotel

LogiSYM Dubai 2017 is a two-day conference for logistics and supply chain professionals, educators, information architects and usability practitioners, LogiSYM Dubai 2017 will bring together 300 professionals from around the region. With EXPO 2020 just around the corner and the UAE forging ahead as the regional’s leading supply chain hubs, this year’s theme: ‘Beyond 2020 – Connecting Supply Chains, Creating the Future’ looks at the opportunities, supply chain and consumer mobility and sustainability.

Made for the job Ford Trucks Construction Series has been designed for the toughest jobs out there, from mixing cement or moving great mounds of earth, working in the vastest of quarries to the smallest sites.

Drop into one of our authorised dealerships today to find out more about how our tenacious and efficient 350 PS Motor-powered Series can help you. www.fordtrucks.com.tr

Ford Trucks Sharing the load

Bahrain Iraq Jordan Oman Qatar Saudi Arabia United Arab Emirates United Arab Emirates

– Almoayyed Motors – Manama / venugopal.nair@almoayyed.com.bh – Al Kasid Commercial Agencies Ltd - Erbil, Baghdad / ahmed.ali@al-kasid.ae – The Commercial & Industrial Company - Amman / w.albajjali@cic.com.jo – Mohsin Haider Darwish LLC - Muscat / bhaskar@mhd.co.om – Almana Motors Company W.L.L – Doha / oghobrial.aa@almanagroup.com – Al Jazirah Vehicles Agencies Co Ltd – Riyadh, Dammam, Jeddah / smomea@aljazirahford.com – Al Tayer Motors – Dubai / razmy@altayer-motors.com – Premier Motors – Abu Dhabi / homohamed@altayer-motors.com