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Contents

Start 6 | News Scan:

Roundup of Regional & International news

10 | Asia Supply Chain

Insights: China, the new logistics powerhouse

12 | Maximus Air

Cargo: The Middle East’s largest all-cargo carrier gets even bigger

Features 16 | E-Commerce: The logistics industry gets a shot in the arm

22 | Hellmann

Worldwide Logistics MENA: Impressive 15 year track record

12 39 | High Lift:

28 | Ocean Race

Logistics: A rare glimpse of Ocean Race logistics

Konecranes unveils the new, powerful CLX chain hoist crane

30 | Professional

40 | Case Study:

Perspectives: Prakash ‘PK’ Menon ups the ante

28 | Ocean Race

Logistics: A rare glimpse of logistics involved in the hugely challenging Volvo Ocean Race 32 | OEM Overtures: Original Equipment Manufacturer Rockwell on innovative architecture

21

42 | Logistics &

The Law: Changes to the Maritime Laws and its implications

44 | Africa

Expansion: Dubaibased IML expands into East Africa

36 | Saudi Maritime

Congress: US $ 30 billion investment raises spirits for the Saudi Maritime sector

Agility-STME partnership brings dividends to both companies

46 | Sweet Success:

28

The world’s largest sugar carrier calls at Jebel Ali Port

Logistics News ME | January 2015 | 3

Editor’s Note LOGISTICS IN THE LEAD The old year has passed, the new one has emerged in the passage of time. We are now well into 2015 and as is customary in the early days, it is a time for reflection and muse on what the New Year holds in store. It has been a volatile 2014 with all its vicissitudes, vagaries and variations.

As we ponder and take stock of the year 2014 and study anticipations for this year, it is the collective expectations of the logistics & supply chain industry in the region, as elsewhere globally, that there will be added momentum and better prospects this year.

All this against a backdrop and concern of plummeting oil prices and its implications for global trade. Oil, after all, is the mainstay of the economies of virtually all of the GCC member states and several other oil-exporting countries in the energy-rich Middle East.

of the fact that its current CEO took over at the helm in May 2008, just a tad before the global financial crisis hit head-on.

Madhav Kurup able to turn the company around, in the face of this financial tempest—beating recession and putting the firm on track to growth and expansion. e-Commerce is now the new buzzword in marketing. Online sales is a facet of e-Commerce that cannot be overlooked. It has now come to stay and become an integral part of the retailing domain. We talk to some industry stalwarts—QNet, JadoPado & Namshi for their take on how far they have come, how they are performing presently and their prognosis for the future.

So, will budgets have to be pruned, allocations pared and investments curtailed on account of diminishing oil revenues? On the face of it, that does not bode well for the logistics business, but then our industry has proved to be resilient and an overcomer in the face of odds. I believe businesses will find a way forward, there is enough optimism to keep us going and thriving –we are not worrywarts and naysayers after all.

We begin 2015 with the spotlight on Hellmann Worldwide Logistics MENA, a remarkable story of success in its 15-year history since its inception in 1999. With a good score card, Hellmann MENA has a lot to be proud of particularly in light

The toughest ocean race known to man, the Volvo Ocean Race 2014-2015 is taking place in 11 cities in 11 countries and will cover nearly 72,000 kilometres over a 9-month period. The Volvo Ocean Race roared into Abu Dhabi Corniche Breakwater from 12 December 2014 to 3 January 2015 during its third stopover race.

We take a snapshot of the logistics involved in navigating materials and equipment for an event the scale and size of the Volvo Ocean Race.

Let’s stay the course. After all, the year has just commenced.

Happy New Year 2015! Hope it will be a successful and accomplishments-laden 2015 for all.

Malcolm Dias Editor malcolm@bncpublishing.net

Editor Malcolm Dias Malcolm@bncpublishing.net

Group Sales Manager Jayant Dey Jayant@bncpublishing.net

Managing Director Walid Zok Walid@bncpublishing.net

Marketing Mark Anthony Monzon Mark@bncpublishing.net

For all commercial enquiries related to Logistics News Middle East contact

Art Director Rana Husam Shiblaq rana@bncpublishing.net

T +971 50 1971200

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

4 | Logistics News ME | January 2015

CONTRIBUTORS Mark Millar, Joy Thattil, Prakash PK Menon

SUBSCRIBE subscriptions@bncpublishing.net PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196

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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.

Printed by Raidy Emirates Printing Group LLC www.raidy.com

THE NEWS

The News Swisslog in deal with CatchOfTheDay CatchOfTheDay, a division of The Catch Group, Australia’s largest eCommerce group, have begun operating Australia’s first AutoStore system at its central distribution centre in Melbourne. Swisslog Australia supplied the solution which is the latest technology in tote storage and Goods-to-Person picking.

Swisslog Australia was appointed to install the new fulfilment and storage solution in early 2014 with the site recently going live to become the first AutoStore system in Australia.

AutoStore

has

increased

storage

capability and throughput within the existing facility and enabled the better utilization of space. At the core of the solution is a storage grid of 25,000 bins, served by 70 robots, picking and transferring goods to 4 Goods-to-Person picking stations. Additionally, the improved inventory control, operational flexibility and ease of system expansion has positioned CatchOfTheDay for future growth. Swisslog’s range of technologies will provide solutions for eCommerce and Omni-Channel automation through a combination of reliability, speed, accuracy and scalability.

Volvo Trucks ME reports 24% growth in 2014 Volvo Trucks Middle East has announced a 24% increase in deliveries and 27% increase in parts sales year on year for 2014 across its 13 active Middle East markets. The announcement comes almost twelve months after the Swedish premium truck manufacturer launched three new, top-of-the-range models in the biggest truck launch ever held in the region. The UAE and Iraq lead with the highest percentage growth.

The most significant deals completed this year included a deliveries to major construction firms in Dammam, Muscat, Dubai and to Baghdad Municipality.

Lars-Erik Forsbergh, President, Volvo Trucks, Middle East, remarked: “2014 has been an extremely important year for Volvo Trucks Middle East. The new FH, FM and FMX models and the solutions we offer our customers, will continue to help us to do that as they offer the highest possible standards of reliability, handling, robustness, fuel-efficiency, safety and driver comfort to our Middle East customers.”

ADPC launches ‘Maqta Gateway’ project Abu Dhabi Ports Company recently launched a new innovative port community system project.

Capt. Mohammed Juma Al Shamisi, CEO, ADPC and Alan Long, Chairman, IPCSA

The system, called “Maqta Gateway”, is a state-of-the-art system that has been designed in line with international standards and will serve the community by interlinking all of the relevant parties involved in Abu Dhabi’s growing import and export trade business.

“Maqta Gateway’ will help facilitate the next generation of trade in Abu Dhabi and will dramatically transform the Emirate’s way of doing business. It will make import

and export activities more efficient, transparent and thus more time and cost effective while guaranteeing optimum supply chain efficiency”, affirmed Capt.

Mohammed Juma Al Shamisi, CEO, ADPC.

As a result of the introduction of ‘Maqta Gateway’ project, ADPC is the first organization in the GCC region to become a member of the International Port Community Systems Association (IPCSA), a global body which promotes the highest possible standards in international port community system operators.

Mr. Lars-Erik Forsbergh, President, Volvo Trucks Middle East

Logistics News ME | January 2015 | 5

THE NEWS

Panalpina flies UNICEF Ebola relief to Sierra Leone Panalpina has joined forces with the United Nations Children’s Fund (UNICEF) to support the world’s ongoing fight against the Ebola crisis, which has so far ravaged West Africa. Sierra Leone is currently the most affected country.

Recently a Panalpina flight took off from Luxembourg and the freighter plane was headed for Freetown, Sierra Leone, carrying almost 80 tons of vital supplies and equipment destined for community care centers in the Ebola-affected region.

“The relief flight will hopefully bring some respite to the people in the region.

It’s been our privilege to contribute to the commendable aid efforts in Sierra Leone and I thank everyone involved,” remarked Peter Uber, CEO, Panalpina.

Nobel Peace Recommendation Forum honours Dubai Customs Dubai Customs has claimed the Brand Award in the category of ‘Star Companies / Organization’s in government sector presented by the International Nobel Peace Recommendation Forum, in collaboration with the International Non-Olympic University.

The honour trophy was presented to Ahmed Mahboob Musabih, Director, Dubai Customs, by Akram Sabry, INOU National Brand Ambassador for South Africa and Middle East, in the presence of award committee members.

The awarding ceremony was attended by Dubai Customs top officials, including Buti Al Jumairi, Executive DirecHE Ahmed Mahboob tor of HR, Finance and AdMusabih in discussions with ministration Division, Abthe INOU delegation led by dullah Mohammed Al Akram Sabry Khaja, Executive Director of 6 | Logistics News ME | January 2015

Customer Management Division, Saeed Ahmed Al Tayer, Acting Executive Director of Policies and Legislation Division, Yousuf Ozair, Director of Intellectual Property Department, and Khalil Saqer Bin Gharib, Director of Corporate Communication Department.

Ahmed Mahboob thanked the award committee members for recognizing Dubai Customs efforts in all aspects, particularly in regard to Intellectual Property Rights (IPR) protection. In this regard, Dubai Customs made 291 seizures of IPR infringing goods (11 million items), valued at US $ 9.4 million during the first eleven months of 2014.

More than 950 seizures of IPR infringing goods took place between 2011 and 2013, with a value exceeding US $ 17.71 million.

THE NEWS

Tristar wins Prince Michael International Road Safety Award

Eugene Mayne, CEO, Tristar Group (right), receives the Award from HRH Prince Michael of Kent.

Muhammad Akber, GM, Tristar, HSEQ is seen to the left.

UAE-based Tristar has won the Prince Michael International Road Safety Award (PMIRSA) in recognition of its extensive internal and external road safety programs. Tristar Group CEO Eugene Mayne recently received the prestigious award from HRH Prince Michael of Kent who is also the Patron of the Commission for Global Road Safety in London. Mayne was accompanied by Tristar GM for HSEQ and Sustainability Muhammad Akber.

Since 1987 the awards are in place to recognize outstanding achievements and innovations in road safety. Each year the award office receives hundreds of applications which are sent to panel of highly experienced judges. Each application has to pass through five main criterions namely visible commitment, innovation, well researched, achievement, and sustainable.

Tristar was awarded based on its various best practices including the Royal Society for the Prevention of Accidents (RoSPA) Safe Driving program for heavy duty commercial drivers.

SOHAR Port drives home safety message Aramex recently announced its joint venture with Leo Global Logistics, a prominent logistics service provider in Thailand.

Leo Global Logistics is one of Thailand’s foremost logistics firms, offering a wide range of worldwide services including air, sea and land freight forwarding as well as door to door small parcel delivery. Leo Global Logistics will provide Aramex with important import and export logistics capabilities in Thailand and South East Asia.

Commenting on the joint venture, Hussein Hachem, CEO, Aramex said: “I am delighted to announce this joint venture in Thailand, which sets the stage for Aramex Thailand to play a key role in continuing our expansion into the Asia Pacific market and to benefit from our established global network.”

A panoramic view of the Port of Sohar

3PL

THE NEWS

UASC opens a wholly-owned agency in Switzerland United Arab Shipping Company (UASC), recently opened a wholly-owned representation in the Swiss market as of 1 January 2015. UASC’s new agency in Switzerland (UASAC Switzerland GmbH) will take over all agency activities from Fiege Logistics which successfully represented UASC in the Swiss market for 24 years.

The change in representation in Switzerland is part of UASC’s growth plan and customer-focused strategy, and it highlights the importance of the Swiss mar-

ket for UASC. Additionally, UASC’s recent cooperation agreements with Ocean Three and Hamburg Süd, will unlock access to several new markets for European customers, in general, and for Swiss customers, specifically.

“The Swiss market is growing rapidly and this represents a great opportunity for UASC to further strengthen our presence and improve customer accessibility and services,” stated Detlev Kerber, Vice President of the UASC Europe Cluster.

UASC freighters Malik Al Ashtar & Ain Snan at an undisclosed port

Aramex speeds up Africa expansion Aramex, the leading global logistics and transportation solutions provider recently acquired the master franchise for the PostNet brand in South Africa.

PostNet is South Africa’s largest privately-owned counter network in the document and parcel industry. The transaction involves a 100 per cent buyout of the business from current owner OneLogix Group for US $ 16.5 million.

PostNet provides a one-stop business center for entrepreneurs, businesses, households and consumers, offering services including courier, copy, digital print, stationery, mailboxes and more. Since starting operations in 1994, PostNet South Africa has grown into a chain of 287 stores and services 55,000 customers daily across the country. As master franchisee, Aramex will work in close collaboration with each PostNet store, to further grow the retail potential of the brand in South Africa.

Abu Dhabi Terminals achieves ISO 28001:2007 Certification Abu Dhabi Terminals (ADT), manager and operator of Khalifa Port Container Terminal, has been awarded the exclusive and prestigious ISO 28001:2007 Certification in Security Management Systems.

The stringent international standards are designed to demonstrate that port operators give the highest priority to security and professionalism in order to safeguard the international supply chain – vital to the economic growth of trading nations.

Commenting on the achievement, Ahmed Ayada Ahmed Al Hameli, General Director – Security and Government Relations for ADT, stated, “To be among the few regional organizations that have achieved ISO 28001:2007 is testament to the hard work of our security and internal auditing teams who have worked tirelessly to ensure the required standards have been met”.

AHMED AYADA

Agility CEO inducted into Asia Hall of Fame

Essa Al- Saleh (R) recieving his award at the presentation ceremony

8 | Logistics News ME | January 2015

Essa Al-Saleh, President and CEO of Agility Global Integrated Logistics (AGIL), was inducted into the prestigious Supply Chain Asia Hall of Fame at a recent ceremony held in Singapore.

Al-Saleh was nominated for his vision and direction in helping Agility grow from its origins as a local company in Kuwait to a global supply chain leader today. His contributions to the industry, which have come through sharing knowledge and insights at industry events, demonstrate his passion for the logistics community and his desire to raise the profile of the organization, along with his interest in expanding Agility’s footprint and presence in Asia.

Receiving the award from Al-Saleh remarked, “I would like to share this award with all Agility employees who have worked so hard to build the company into a global market leader in the logistics sector.”

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In the Collaboration stage, your operations-technology/informationtechnology (OT/IT) infrastructure serves as a secure command center to coordinate activities — anytime, anywhere — with business units, suppliers, and customers. Collaboration tools — remote access, instant messaging, video chat, and file-sharing — engage the knowledge base of an entire supply chain to address challenges. Similarly, domain experts can be accessed by all business units, companies, and countries, instantly sharing best practices.

A collaborative, interactive OT/IT infrastructure makes the highly effective convergence of people, processes, and technology possible. It allows an organization to recognize and leverage partnership opportunities within the supply chain — driving innovation, operational improvement, and cost savings in countless ways. At Rockwell Automation, for example, collaboration with suppliers and machine builders has resulted in new-product breakthroughs and better forecasting. It can do the same for your company.

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Rockwell Automation, Middle East Headquarters PO Box 45235 Abu Dhabi UAE. T: +9712- 6948100 ; F: +9712 - 6948199 W: www.rockwellautomation.ae Logistics News ME | January 2015 | 9

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

Boosting logistics in China In continuing its impressive development path of recent decades, China has become two economic markets that are interconnected and converging: - Its Global market which is driven by mass production for export to developed countries, and - Its Local market which revolves around rapidly expanding domestic consumption.

Multi-national companies first came to China to take advantage of abundant supply of low-cost labour and incentives to establish operations in Special Economic Zones. Nowadays they remain in China to sell products to Chinese consumers in the local market. Factories and shops are interconnected and converging – the workers have become the shoppers. One development has fuelled the other, increasing economic prosperity across the nation. The latest saying is that the foreign companies “came to China for the workers, now they stay in China for the shoppers”.

From the China logistics perspective, the emphasis is therefore no longer purely on transporting products from factories to the ocean ports on the eastern seaboard for export to the developed markets.

Mark Millar

Nowadays there is just as much emphasis on distributing goods within and throughout the domestic China market in order to reach the increasingly prosperous consumers located all over this vast country.

Mark Millar — MBA, FCILT, FCIM, FHKLA, GAICD Hong Kong-based Mark Millar leverages 25 years global business experience to provide value for clients with in-

nized with a number of accolades, including being named in the “Who’s Who of Power Players in Supply Chain Management in China”, the “Pro’s-to-Know Thought Leaders in Supply Chain” and as “One of the most Progressive

London based business book publisher, Kogan Page have commissioned Millar to write the book ‘Global Supply 10 | Logistics News ME | January 2015

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

The logistics industry has been a key part of China’s relentless economic growth. The latest report from the China Federation of Logistics and Purchasing (CFLP) says that China’s logistics industry was worth RMB 177.3 Trillion (US $ 28.7 Trillion) last year, up 9.8% from the previous year, mainly fuelled by the country imports of raw materials.

Logistics Sector: The logistics industry has been a key part of China’s relentless economic growth.

The latest report from the China Federation of Logistics and Purchasing (CFLP) says that China’s logistics industry was worth RMB 177.3 Trillion (US $ 28.7 Trillion) last year, up 9.8% from the previous year, mainly fuelled by the country imports of raw materials.

The CFLP figures say that logistics costs increased by 11.4% to RMB 9.4 Trillion (US $ 1.52 Trillion), equivalent to 18% of gross domestic product.

Transportation accounted for over 52% of China’s logistics costs with 78% of all domestic cargo being moved by road.

Road transport companies account for the largest share of the logistics market in China with 790,000 road hauliers, but the top 20 trucking companies share less than 2% of the market.

As reported by Asia Maritime, China’s logistics sector remains hugely complex, brutally competitive and massively fragmented - even the top 50 logistics players, led by COSCO, Sinotrans & CSC Holdings and China Shipping, with combined sales revenues of more than RMB 2 billion (US $ 323.75 million), have less than 2% of the total market.

Li & Fung’s latest China Logistics report says that high road tolls, stringent regulations and increased taxes are some of the issues facing logistics companies in China, with road tolls now representing 33% of total transportation costs.

“Excessive highway tolls, as well as price hikes of fuel and labour, have eaten into many logistics enterprises’ profits,” the report says.

Continuing economic development in both production and consumption sectors brings new challenges and opportunities for the logistics industry.

Although logistics in China is the

backbone of the domestic supply chain, the industry itself remains complex, inefficient and fragmented.

Third party logistics (3PL) penetration – where transportation and warehousing activities are out-sourced to a third party - is around 20% in China. Contrast that to the USA where the penetration rate is around 45% and Western Europe where it’s almost 50%, whilst in Japan outsourcing reaches 80%.

The low 3PL penetration rate in China is a function of it being early days for outsourcing – vertical integration is the traditional approach of Chinese companies. It also indicates the relative immaturity of the logistics sector reflecting the developing market environment.

Whilst we are seeing improvements in the quality of warehousing infrastructure – largely driven by property developers, the increasing presence of multi nationals and related investments – the domestic transportation sector remains massively fragmented and hugely challenging.

Providing transportation to service nationwide domestic distribution networks typically involves numerous trucking sub-contractors – with the majority of them being owner-operators with just one or two trucks – rarely of good quality and with little, if any, modern technology.

International logistics service providers are providing nationwide transportation solutions through tightly managed networks of pre-qualified subcontractors, combined with adoption and deployment of technology for electronic track and trace.

As China’s economy continues to develop, the logistics sector will mature and outsourcing levels increase. The

increasing presence of multinational companies in the domestic market, accelerates the deployment of international best practices in logistics, embracing multi modal transportation, structured distribution networks and efficient supply chain ecosystems.

CILF, Shenzen hosts UK Pavilion for the first time Held jointly by the Ministry of Transport of the PRC and Shenzhen Municipal People’s Government, the China (Shenzhen) International Logistics and Transportation Fair (CILF) is the largest logistics and transport expo in Asia for the logistics services, supply chain management, ports and shipping, air cargo, multi modal transportation, technology solutions and material handling sectors.

Featuring the ‘Business is Great’ branding, the UK Pavilion comprised a multi-user exhibition space which provided a cost-effective platform for UK-based SME service providers to explore business opportunities in the China logistics sector.

For the first time in its nine-year history, CILF hosted the UK Pavilion.

The UK Pavilion initiative was led by China-based, award winning industry leader Mark Millar, who serves as Chairman of the Logistics Committee at the British Chamber of Commerce in Hong Kong and as International Advisor to CILF organisers LSCMA in Shenzhen.

British companies exhibiting on the UK Pavilion included business book publisher Kogan Page, supply chain technology thought leaders Pantechnik International, industry specialist training provider The Resources Group and thirdparty logistics group Trade Distribution.

For most exhibitors, this was their first adventure into the China market.

Logistics News ME | January 2015 | 11

AIR FREIGHT

THE AIR CARGO HEAVYWEIGHT Incumbent CEO of the largest of all-cargo operators in the Middle East says company experiencing strong growth in European and African markets Antonov 124 being loaded

12 | Logistics News ME | January 2015

AIR FREIGHT

Mohamed Ebrahim Al Qassimi, CEO, Maximus Air Cargo

Maximus Air is one of the largest allcargo operators in the Middle East, offering a full and comprehensive complement of air cargo charters to destinations around the globe. Based in Abu Dhabi, UAE, the company operates a large fleet that includes the Antonov 124, the heaviest of heavyweight cargo lifters, capable of carrying 120 tons, which it can load and offload independently using onboard systems; Ilyushin 76, and Lockheed Hercules aircraft that are capable of carrying a diverse range of cargo to both established major airports and remote landing strips. Powered by a dedicated team of air and ground staff, Maximus Air provides cost-effective logistical solutions for moving oversized cargo, and works with international aid agencies that include the United Nations and the UAE Red Crescent in order to provide a fast, efficient, and smooth response to humanitarian crises.

The company’s philosophy is rooted in offering customers responsive, practical, and cost effective solutions combining a personal approach with customer service.

In an exclusive interview with Logistics News Middle East, Mohamed Ebrahim Al Qassimi, the newly appointed CEO, reinforced all-cargo specialist Maximus Air’s stated goal to be the leader in its field.

Could you please expand on Maximus Air’s growth in the areas of VIP Cargo as well as in the continents of Europe and Africa? What is driving the growth?

Mohamed Ebrahim Al Qassimi: According to Forbes, there are 1,645 billionaires in the world, and 103 of them live in the Middle East and North Africa. When you combine that with the number of royals, foreign dignitaries, and other VIPs that have specific air transport needs in the region, it is clear that there is a market for transporting air cargo shipments on their behalf and we are currently looking to expand our remit so as to be able to tap into this market.

As far as growth is concerned, some of the main drivers in markets like Africa have been urbanization and stability. These two factors alone have enabled economies to grow, and have prompted increasing demand for the import and export of wholesale, retail, and manufactured products – which accounted for over two thirds of the continent’s GDP in the last few years. This has led to Africa being labelled as the new China, which may perhaps be overstating the situation a little given the size, diversity, and challenges that remain on the emerging continent, but it is still home to five of the world’s dozen fastest-growing economies and has seen six percent growth in demand for air cargo in 2014 – second only to the Middle East. Linking the supply chains between these two key regions therefore holds many benefits for our business operations, as regions like Latin America struggle to reverse six percent negative growth in Freight Tonne Kilometres (FTK).

At the same time, while Europe’s economic recovery has stalled of late, companies are said to be replenishing their inventories, causing a dramatic rise in

cargo demand that has increased volumes and returned the industry to more sustainable growth. As before, our unique and diverse fleet gives us a competitive edge over other companies and allows us to offer customers a highly responsive, personalised, and cost-effective service that combines a personal approach with a commitment to customer service.

Please tell us more about Maximus Air’s freight forwarding business?

Up until relatively recently, freight forwarders have been the oil that keeps global supply chains running; as a vital component in ensuring that international trade maintains pace with the increased speed in which business transactions and the worldwide transportation of goods now takes place. However, this is also a period of great change for the freight forwarding industry, with the popularity of ‘nearsourcing’ meaning that its role has been diminished in some markets.

Despite this trend, while the forwarding market dipped 3.3 percent last year, the forecast through to 2017 remains bright, with 6.7 percent compound annual growth rates being project by Transport Intelligence. Like Maximus Air, many in the freight forwarding industry are looking at ways to adjust their business models to reflect the changing nature of the global economy, and maximise growth. This will be a feature of the new programme that we will be launching in the not too distant future.

In 2009, Maximus Air initiated the ‘Care by Air’ programme which, together with the UAE Red Crescent, Etihad Airways and Abu Dhabi Airports Company, delivered humanitarian relief by providing the use of logistical resources and delivering supplies ‘at cost’. How is the ‘Care by Air’ initiative faring thus far?

The ‘Care by Air’ programme is something that we are extremely proud of, and has reached millions of lives in some of the most remote corners of the world. As part of the company’s commitment to sustainable development and disaster relief, we have offered rapid response to some of the worst disasters in recent history, flying in aid and supplies to areas Logistics News ME | January 2015 | 13

AIR FREIGHT

One reason for our success is that our fleet is unique in that we have a range of aircraft that can accommodate every kind of shipment, and we can operate without conventional airport services if needed.”

otherwise unreachable – and in double quick time. As such, we’re looking to take our relationship with development organisations like the Red Crescent to the next level.

At last count there were over 73 million people that required immediate humanitarian assistance in the last twelve months, and with the growing complexity of challenges facing the world, it is likely that this number will grow significantly over the next few years. From the challenges in the Middle East, to extreme weather conditions in Southeast Asia, and even the US, one thing that is clear from all that we see and hear is that no one is immune to disasters in the modern world. In this regard, we are rather fortunate to be in a position to be able to bring relief to families in challenging times.

One reason for this is that our fleet is unique in that we have a range of aircraft that can accommodate every kind of shipment, and we can operate without conventional airport services if needed. Having historically deployed our aircraft on humanitarian missions for organisations including the United Nations and the UAE Red Crescent, the fact that our aircraft are able to land at both major airports and less established landing strips will continue to be a vital part of our disaster relief activation plans.

Can you please give us examples of more recent humanitarian logistics deliveries made by Maximus Air? As I mentioned earlier, we have a strong working relationship with the Red Crescent Authority in UAE, and have been working with them to provide assistance to Syrian refugees living in temporary shelters in Jordan. According to the United Nations High Commissioner for Refugees, approximately 2.5 million have fled to Syria›s immediate neighbours Turkey, Lebanon, Jordan and Iraq since the outbreak of civil war in March 2011. An additional 6.5 million people are internally displaced within Syria, and while many refugees have family in the area who are able to help with accommodation and living costs, most rely on the distribution centres of aid agencies like the Emirates Red Crescent for their daily needs.

In light of this situation, the Emirates Red Crescent has accelerated efforts to help Syrian refugees. Of the AED 130#million (US $ 35.5 million) the UAE pledged at a donor conference in Kuwait, 80 percent has been used for camp expansion and aid work in Jordan, Iraq, and Lebanon, and our aim is to continue providing support that is needed, for as long as it is needed.

Are there plans to open new regional hubs?

Aside from the addition of VIP cargo and freight forwarding services that I mentioned earlier, there are no immediate plans to diversify our core business or any open new regional hubs. We will 14 | Logistics News ME | January 2015

The Antonov 124 in the Maximus Air Cargo

continue to operate globally from Abu Dhabi, as we feel this is the ideal location to capitalise on growing East-West cargo flows, and establish strong links between booming Gulf economies and those of Africa and Europe. We will continue to transport everything from dangerous goods, to livestock, VIP cargo, and humanitarian aid, among other things. But beyond that we want to ensure business is sustainable and will monitor the need for new regional hubs on an ongoing basis.

What are your expansion plans for Maximus Air? We are currently targeting 20% percent compounded growth for the coming years and a key part of that growth strategy will involve the planned addition of several new aircraft to our fleet. We will release details of any deals as and when they take place. For now, our expansion is firmly focused on demand-driven services that are both good for our business, and which also meet the needs of our existing and potential customers.

As the head of the largest all-cargo airline in the UAE and among the biggest in the wider Middle East, what is your message to the industry in the region?

Air cargo transports over US $ 6.4 trillion worth of goods and approximately 35 percent of world trade, and Middle Eastern cargo airlines continue to outpace global markets. This is great news for the region and our aim is to establish ourselves firmly as a globally-recognised leader in the air cargo industry, with services that contribute to the further development of the Gulf’s worldleading logistics and the supply chain sector, as well as of the businesses that are driving progress.

Great strides have been taken towards this goal, and we find ourselves surrounded by great company, no pun intended.

However, we also recognise our own position at the forefront of outsized and specialist air cargo transportation. We have a versatile fleet and are prepared and able to carry the heaviest air cargo loads to anywhere in the world anytime we have a situation that requires us to do so.

Logistics News ME | January 2015 | 15

E -ACI OR MFMR EE RI GC HE T

THE NEW FRONTLINE FOR RETAILERS

Threatened by the high cost of operating traditional ‘bricks & mortar’ retail outlets and proliferation of low-cost online businesses, vendors are increasingly gravitating into cyber-space to attract customers and win new buyers.

In an increasingly complex and highly competitive world of marketing, ‘Omnichannel’ is the new catchword that characterizes how retailers worldwide are re-strategizing their marketing techniques. Marketers are making their merchandise available across multiple channels whether the customer is shopping online from a desktop or mobile device as is proving extremely popular and trendy, by telephone or perhaps less so in a bricks and mortar store. The omnipresent cyber channel clearly is gaining momentum as more and more retailers discover the new attraction of the virtual world as a marketing platform for retailing to a global audience.

QNET, the QI’s Group flagship subsidiary, is a global direct selling company with a proud Asian heritage. It has adopted business-to-consumer (B2C) e-commerce supporting its powerful business model that merges direct selling with technology. QNET has some 25 offices and agencies worldwide, and more than 50 stockists, apart from localized operations or franchisees in a number of countries. The company has operation in Egypt and Morocco and in the UAE, QNET operates from 3 locations, offices in Dubai and Abu Dhabi as well as a logistics hub in the industrial city of Mussafah.

Logistics News Middle East spoke to the visiting Dr. Vijay Eswaran, Cofounder & Executive Chairman, of the 1998-established, Hong Kong-based QI Group of companies. As a prominent and primarily e-commerce company that also offers direct selling company and network marketing, QI provides a wide range of life enhancing products that are offered through its proprietary e-commerce platform to customers and distributors in more than 100 countries.

16 | Logistics News ME | January 2015

EA -I CR O FMRME EI GR HC TE

“In the fast-paced, increasingly globalized world that we live in, E-commerce is not even an option, it is a necessity. It is the future.

E-commerce is here to stay,”—Dr.Vijay Eswaran

Logistics News ME | January 2015 | 17

E-COMMERCE

“In the fast-paced, increasingly globalized world that we live in, E-commerce is not even an option, it is a necessity. It is the future. E-commerce is here to stay. The QI Group through its bouquet of multiple and diverse range of offerings comprising lifestyle and leisure; luxury & collectibles; training & education; properties and holiday resorts, not only constitute a hypermarket on the net but also creates entrepreneurs who are spokespersons for the brands they represent.” avers Dr. Eswaran described

variously as an economist-turnedentrepreneur, best-selling author, prolific motivational speaker & philanthropist and one of Malaysia’s wealthiest men.

The Middle East is an area of promise for QI and accounts for 40 % of its revenues remarked Dr. Eswaran. The GCC is the fastest growing region for the company and rightly so because the demographics are ideally suited for us by virtue of a growing population, the emergence of a youth base that is increasingly internet-savvy and netorientated in addition to economic stability

that defines these countries,” added Dr. Eswaran.

Dr. Eswaran also affirmed the expansion plans of the company that will see it enhance its presence in the GCC whilst also making forays in emerging markets in the continent of Africa. “We are making inroads in new territories in the Middle East and Africa that will see QI and QNET strengthen their operations in countries that offer potential,” he stated.

QI’S LOGISTICS ARM QI’s logistics division, Quex Courier was established in 2005 as a warehouse and distribution centre for the company’s direct selling arm, QNET. Currently, Quex Courier has expanded its product warehousing covering 30,000 square feet in Kuala Lumpur and Hong Kong.

Quex Courier handles packaging and processing and provides cost-effective delivery of products to a global network of customers through its logistics hub in Malaysia, India, UAE and Hong Kong. The company is ISO 9000 compliant and is accredited by the United Kingdom Accreditation Services – UKAS. QNET believes that developing entrepreneurs is a catalyst for economic growth in the Middle East region by virtue of creating a force of direct sellers to the communities they live in. The concept of direct selling is fast catching up across the globe and Dr. Eswaran believes it could just be a solution to alleviating unemployment in many countries.

Ranked in the top 40 worldwide among direct selling companies, sales have increased 70% in the last five years for QNET. The company has been advocating awareness about the benefits of the direct selling industry in many emerging markets in Asia and Middle East. Direct selling offers many well-documented benefits to the economy.

Currently, direct selling worldwide is an approximately USD 178.5 billion industry.* It has approximately 96 million people involved as distributors.* Small business owners are the soul of any economy.

Direct selling businesses not just create jobs, but provide self-employment opportunities to many during recessions.

Dr. Vijay Eswaran

18 | Logistics News ME | January 2015

*2013 Annual report by World Federation of Direct Selling Associations

EA -I CR O FMRME EI GR HC TE

JadoPado moves centre-stage Omar Kassim, Founder, JadoPado spoke to LNME on the company’s progress to date Omar Kassim

JadoPado has moved into the front lines of the Middle East’s e-commerce space in and development in September 2010 by Omar Kassim, the live-wire owner and selfself-styled ‘e-commerce adventure for the internet’, its popularity and success represents a clear departure from its self-charac-

Omar Kassim is the Founder of JadoPado, an e-commerce adventure for the Internet. Kassim runs the business from a strategic and operational level and immerses himself across all aspects of the business to ensure JadoPado continues to build itself as an industry standout.

Omar Kassim, a self-taught customer experience enthusiast, takes a keen interest in learning and understanding the various components that make a business tick. He is a very keen Apple enthusiast and has a soft spot for technology start-ups.

Q: Generally speaking, how is the e-Commerce space currently faring in the Middle East and what is your take on its future potential?

A: The e-commerce space in the region is growing quickly with year on year double digit growth over the last three to four years. We expect that to continue over the next four to five years as e-commerce takes share away from pure play retail.

Q: How would you characterize the growth of JadoPado since its inception and how have you fared thus far in 2014?

A: We’ve grown at a fair clip versus the industry. 2014 has had its challenges, but it’s a been a great year overall given that we discontinued Cash on Delivery in January and became the region’s only player to accept only online payment aside from a tiny slice of cash volume for customers who chose to pick up from our offices - a lot of them pre-pay though!

Q: What are the expansion plans for the future and the long-term vision for JadoPado?

A: We’re on the cusp of a big change as we swivel our business from retailer to venue. Over the next few weeks we’ll reposition JadoPado as a marketplace

for buyers and sellers around the world.

It’s something that we’ve been working on for the better part of the year gone by.

We’ll continue to retail our own product on their as a vendor on the platform, but our focus shifts to managing and providing a platform for buyers and sellers to have a great online experience. On the slightly longer time horizon, the vision is continue to evolve JadoPado into a multi-disciplinary technology business.

Q: Please describe your customer profile and what are your fastestselling / moving product categories?

A: It’s a great mix and reflects the population dynamics both in the UAE as well as across the rest of the region.

We’ve been shipping globally to customers since March 2013 and our customer base reflects that.

At the moment our fastest moving category is smartphones, closely followed by tablets. I’m certain that will even out as we bring on 16 new top line categories and 5500 categories within that top 16.

Q: How important is the ‘supply chain-logistics’ equation in your business and (briefly) how do you ensure the streamlining of both your

procurement and delivery systems?

A: Very important. E-commerce is essentially a service layer built on top of a supply chain. The happy procurementdelivery balance can be attained by being organized, diligent and having the right systems and process in place.

Q: What are the challenges facing the e-commerce industry today?

A: Like many businesses profitability remains a big concern. The goal is to make the business profitable as operating costs go high and margins get leaner.

Q: Would the anticipated success of e-Retail eventually sound the death-knell on the traditional brickand-mortar sales outlets?

A: Nope I don’t think this will be the case at all. E-commerce and retail can go hand in hand and can actually work really well together. I can definitely see more and more technology getting involved in retail - from the often spoken about Apply Pay, to things like Beacons and so on. E-commerce can act as a strong compliment to an existing distributed store network - especially if you use the store network as part of your fulfilment and reverse logistics process.

Logistics News ME | January 2015 | 19

AIR FREIGHT E-COMMERCE

Logistics News Middle East spoke to Hosam Arab, Co-Founder & Managing Director, Namshi, the Middle East’s premier e-Commerce portal in the region.

Generally speaking, how is the e-Commerce space currently faring in the Middle East and what is your take on its future potential?

Ecommerce sales in the MENA region are expected to reach an estimated $15 billion by the year 2015 growing from $9 billion in 2012. Along with an estimated 90 million internet users in the Middle East, the reason we are seeing such growth within the e-commerce space is due to better value for money offers, user-friendly product comparison and wider product ranges online.

In line with this trend, Namshi has built a fast-growing, fashion e-commerce business that rivals some of the largest offline retailers in the market within just three years. As we celebrate our third anniversary this month, we are enthusiastic about what the New Year has in store for us.

Hosam Arab

How would you characterize the growth of Namshi since its inception and how have you fared thus far in 2014?

If we focus on our growth during 2014, we have implemented a number of methods to strengthen our overall business model.

The first is our investment into mobile as we now offer our customers the ability to shop via their mobile and tablet devices, with the launch of our universal applications for iOS and Android

What are the expansion plans for the future and the long-term vision for Namshi?

Namshi has faced a sharp up-turn over the past few months, resulting in immense business growth. We expect this to continue throughout 2015.

We currently ship our goods to seven countries, including: United Arab Emirates, Saudi Arabia, Kuwait, Oman, Bahrain and Qatar, and we recently added Lebanon to the list. Our audience across these markets is split 55% female and 45% male, with a 70% customer base between 25 and 44 years old.

We have also recently opened a new warehouse facility, which is four times larger than our current facility. With the capacity to process over 20,000 items per day and space to house 2 million units, this new facility ensures we can process a huge amount of orders each and every day – especially as demand for our products continues to grow. Of course, the facility will be instrumental in ultimately continuing to increase our delivery numbers and strengthen our logistical capabilities.

We are a truly global company as our staff have brought with them international best practices in operations and consumer trends from household brands including Google, ASOS and River Island.

Please describe your customer profile and what are your fastest-selling / moving product categories?

Namshi caters to a dynamic, young and lifestyle-driven demographic with twenty something, socially active individuals who appreciate and utilize new technologies. On Namshi, they love to discover a style that suits their identity. Namshi’s most popular fashion items range from shoes to party wear and sportswear.

We have also invested a lot of time and energy into hiring the right people to grow our business and offering, and we now stand at 250 employees. Going hand in hand with our large staffbase, we have invested heavily in our own delivery and logistics capabilities.

How important is the ‘supply chain-logistics’ equation in your business and (briefly) how do you ensure the streamlining of both your procurement and delivery systems?

A flexible, reliable and transparent delivery service is the foundation of our customer experience. We streamline delivery by integrating closely with our delivery partners in order to have advance warning of delays so we can proactively intervene and manage our customer›s expectations.

In parallel with this, where possible we look to build our own capabilities in major destinations to provide a uniquely flexible delivery product.

The extensive range of local, international and in-house brands we have on offer on the site is also continually growing, and Namshi now features some of the world’s biggest brands including Adidas, Nike, Diesel, Lacoste, Missguided, Swarovski and Vans. The balanced mix of both high street and designer fashion ensures that there is something for all tastes.

What are the challenges facing the e-commerce industry today?

While the online retail industry in the GCC hasn’t grown as fast as it has in other parts of the world, the region is catching up quickly – with the UAE retaining the highest percentage of internet users who shop online.

Namshi is seen as best in class for mobile growth and the majority of our traffic and revenue is driven by mobile. With 70% of our customers using mobile or tablet devices to access Namshi, the emerging trend we are witnessing is that the mobile share of transactions is growing at an incredible rate.

20 | Logistics News ME | January 2015

AD INR A FT RA E 2I G0 H1 4T

dnata makes major global investments in 2014 dnata invested more than AED 545 million (US $ 148.5) worldwide in 2014 to deepen its service offering in travel, cargo, ground handling and catering. These investments included the acquisitions of Gold Medal Travel and Stella Travel Services, new halal kitchens, enhanced cargo infrastructure in the UK and continued investments in the company’s operations in Dubai. dnata marked several milestones this year, but at the same time faced unprecedented challenges. From instability in Iraq, security threats in Pakistan, airport runway upgrades in Dubai, and increased economic pressures around the globe, dnata has had to respond quickly, and review its operations to deliver the high quality services its customers have come to expect.

“We faced several challenges this year and though our teams were tested, we have kept our focus to deliver to our customers,” assured Gary Chapman, President, dnata. “There will always be short term challenges for which we have to be agile in our response,” he added.

In 2014, dnata continued to strengthen its business footprint, adding capacity and new complementary competencies which paid

dividends for both dnata and its 250 airline customers, the company maintained.

Global Growth In 2014, dnata became the UK’s largest longhaul travel services provider, with the acquisitions of Gold Medal Travel Group and Stella Travel Services.

The UK was also a key growth market for dnata’s airport operations. This year, dnata enhanced cargo infrastructure at Glasgow, Birmingham, East Midlands, Newcastle and Gatwick airports. At Manchester, the company moved into refurbished cargo facilities, and launched a greenfield passenger and ramp handling operation at the hub, dnata›s second in the UK. dnata now handles 25 passenger flights a week at Manchester International airport.

Its cargo operations in Pakistan and the Philippines received RA3 Certification from the EU. dnata›s catering operations continued to grow. In Rome and Milan, the company invested in two new Halal kitchens, to meet the changing needs of its airline customers.

Over the course of the year, its kitchens around

the world uplifted more than 56 million into the skies, delivering tasty meals to passengers. dnata & Dubai – tied together Al Maktoum International airport at Dubai World Central (DWC) marked its first full year of passenger operations in 2014, and became a regional cargo hub with a capacity of 16 million tonnes per year. dnata now handles more than 80,000 tonnes of cargo a month at DWC and this number will continue to grow.

During Dubai International airport’s (DXB) 80-day runway upgrade from May to July, more than 300 flights a week used Al Maktoum International airport. dnata ensured the tight schedule ran smoothly at both hubs, handling more 20.2 million passengers, 24.5 million bags and 45,000 flights between the two airports over the 80day period.

Over the year, dnata invested millions into new ground support equipment (GSE) to ensure flights landing at the two airports are serviced safely and efficiently. The company also introduced electric baggage trolleys in Terminal 2, in addition to over 200 traditional motorized and non-motorized GSE, which are more environmentally friendly.

Logistics News ME | January 2015 | 21

COVER STORY

Homing in for a new high Emma & Gus, the celebrated pair of flying white geese flying in harmony and in formation, who form an integral part of Hellmann Worldwide Logistics’ corporate logo, are not just into any flight of fancy but provide the analogy for the company’s alacrity, agility and anatomy.

The unmistakable symbolism is not lost on the company as the tag team demonstrates unison, efficiency, partnership that is both professional and yet personal, reinforcement and synergy— causes and attributes that it espouses, cherishes and nurtures.

Hellmann Worldwide Logistics-MENA is clearly in flight and flying high. This year, as it homes in for yet a new high in the region, Hellmann MENA with its offering of multiple services to cover a wide range of industries, is on a roll, its streamlined and revamped operations catapulting it into one of the region’s largest 3PL providers.

The

Hellmann

Worldwide

Logistics story has all the trappings of a melodramatic, run-away corporate success story, its rise meteoric from humble beginnings to one of the largest logistics operations in the world with a presence on every continent. It all started with one man for this global logistics colossus. In 1871, Carl Heinrich Hellmann, used a horse-drawn cart to deliver parcels in and around the historic town of Osnabruck in the state of Lower Saxony in Northern Germany.

Almost 144 years and four generations later, Carl’s greatgrandchildren, Jost and Klaus, currently own and run the mega company with a worldwide network of 19,300 employees in 443 branches in 157 countries and counting.

Logistics News Middle East met Madhav Kurup, CEO, Hellmann Worldwide Logistics—MENA at his offices in extended South cluster of the sprawling and expanding Jebel Ali Free Zone. The logistics veteran was upbeat about his company’s performance and its

Established:1999 Headquarters: Jebel Ali Free Zone Locations: Dubai Cargo Village, Dubai Airport Free Zone, Dubai Logistics City, Jebel Ali Free Zone (South) and Abu Dhabi Accreditations: ISO 9001:2008 Warehouse: Nearly 1.8 million sq. ft. across the UAE (approximately 200,000 sq. ft. dedicated for pharmaceutical products) Employees: More than 500 Hellmann Worldwide Logistics International Employees: 11,684 Turnover : 2.86 billion EUR (USD $ 3.5billion) 22 | Logistics News ME | January 2015

COVER STORY

Hellmann Worldwide Logistics, MENA, is a very significant operation and the fastest growing of the mega LSP’s many worldwide subsidiaries

continually growing success in the region. “Hellmann MENA presently operates in 15 locations across five Middle Eastern countries’ that include the UAE, our regional headquarters, the Kingdom of Saudi Arabia—the GCC economic powerhouse; Kuwait, Lebanon and the Hashemite Kingdom of Jordan.

We also have concrete plans to move into Qatar and Egypt,” asserted Kurup as he enumerated the countries that Hellmann MENA operates in or contemplates to move in the foreseeable future.

“We commenced operations here in Dubai, UAE as an agency in 1999 and then subsequently formed a joint venture with our previous sponsor and in 2005 we bought over his shares to form this new entity Hellmann Worldwide Logistics LLC,” asserted Kurup as he traced the origins of Hellmann MENA since its inception.

Kurup took over the reins at Hellmann in 2008 when the company was financially not on a

very strong wicket and had not made much headway since it was set up. It had 70 employees then and was largely involved in the freight forwarding business. He had faith in the prowess and potential of the company and examined ways and means to grow and turn around the company.

“Shortly after I joined, I faced a huge and worrying challenge. The global financial crisis had just begun to set in and many businesses including the logistics and freight forwarding business went into a free fall. I restructured the company, carefully analyzing our manpower needs, empowering our better-performing personnel, downsizing the number of employees to make the company lean and nimble and set out to streamline the operations,” reminisced Kurup as he spoke fondly of his early days at the company.

The company’s reorganization did work and paid dividends as the company was able to recover from the throes of the harsh and severe

Madhav Kurup

Madhav Kurup is CEO, MENA, Hellmann Worldwide Logistics, overseeing business in the GCC, Levant & North Africa since May 2008. A Post Graduate in Finance with specialization in Cost Accounting, Kurup joined Maersk Line Operations in India as a trainee in January 1993. His earlier career included tenures as Group General Manager (Integrated Logistics) with the RHS Group and Schlumberger (Integrated Project Management) in India. Kurup is also the former Vice President & current member, Board of Directors of the Supply Chain & Logistics Group (SCLG), Dubai; a Chartered Member of the Chartered Institute of Logistics & Transport, London (CILT); a Member of the Advisory Board for Supply Chain (GULFLOG) and a Member of the Advisory Board of UAE’s Etihad Rail.

Logistics News ME | January 2015 | 23

COVER STORY

Hellman Calipar Healthcare Logistics first launched its Pharmaceutical and Healthcare logistics operations at Dubai World Central on 29 June 2010, marking another successful step in the ongoing development of Dubai World Central (DWC) as the premier regional hub for international logistics service providers.

Hellman Calipar is a strategic joint venture between Hellman Worldwide Logistics of Germany and Calipar Integrated Logistics of India that offers a unique concept of healthcare logistics services, aimed at maintaining product integrity throughout the supply chain. Hellman Calipar, which brings together two leading international logistics brands, offers its range of specialized Pharmaceutical and Healthcare products across the region through its logistics centre located at DWC.

consequences of the financial meltdown. Kurup also initiated moves to explore new businesses particularly from some industry sectors that were not as badly affected as the others. The automotive after-market held promise and was relatively unscathed following the financial depression and Kurup decided to peruse this segment. “We decided to focus on this industry vertical, making new investments into training, skills and equipment procurement and forging new partnerships and today we are one of the largest automotive movers in the region,” he affirmed. Today, Hellmann Worldwide Group provides automotive logistics services to mega manufacturers Ford, Audi, Volkswagen and several others.

Hellmann first initiated automotive logistics in Germany, South Africa and in India in 1998 and in 2000 signed a joint venture with Rudolph, a major German auto logistics company for providing services in the UK. After all, seamless logistics is required to get everything from preassembled components down to the last screw to the right place at the right time. As an automotive specialist with international operations, Hellmann was able to leverage its global strengths and offer expertise and bespoke solutions for complex logistics requirements for in-bound production material and the distribution of spare parts. Among the facilities offered in the region is a 30,000 sq. m. automotive parts distribution centre in Dubai and an automotive logistics network that presently spans over 25 countries.

Another field that Hellmann MENA made successful forays into was the healthcare, pharmaceutical, cold chain space. The partnership with Calipars Integrated Logistics of India, part of the Parekh Group is a case in point. As a nonasset company, Hellmann was able to leverage on Calipars’ expertise and investment capabilities into setting up, implementing and executing cold chain & pharmaceutical logistics for the healthcare sector.

24 | Logistics News ME | January 2015

Like Hellmann, the Parekh Group is also privately owned and that constituted a great workable synergy and goodness of fit for both companies. Kurup felt the need to move into this area as more and more attention was being given to this division by Governments, heath and security agencies. “It was not easy and our entry was fraught with many challenges relating to bureaucracy, regulatory and security agencies. Pharmaceutical products have to be kept under very tightly controlled, optimum temperature conditions as both weather and humidity can adversely affect the longevity of perishables such as medicines if utmost care is not taken,” he noted.

Hellmann Worldwide Logistics global strengths include providing packaging services, European trucking solutions, multiple consolidations hubs in key European cities, global warehousing solutions, customs expertise in addition to comprehensive air, sea, road and rail transportation solutions.

Hellmann Logistics MENA turned around and revived its fortunes under Kurup’s stewardship. From a count of around 70 employees when he took over, the ISO 9001:2008 accredited company now has over 500 employees in the UAE alone and over 1.8 million sq. ft. of warehousing space of which 200,000 sq. ft. has been allocated specifically for pharmaceutical products.

The Middle East is very significant and one of the fastest growing regions in the world for Hellmann Worldwide Logistics. The company has made good inroads into the region and is clearly in expansion mode in the region which holds out a lot of promise and potential for growth.

The Flying Geese in Hellmann’s corporate logo is not just symbolism. According to Kurup, it is writ large with meaning and implications. “The geese is reflective of the way we conduct and perform our business and represents a

COVER STORY

Madhav Kurup, CEO, Hellmann Worldwide Logistics—MENA, receiving the Logistics Innovation Award from Anitha Nandini, Consul–Commerce, Press & Information, Consulate General of India, at the recent BNC Publishing-sponsored Indian Innovator Awards 2014 in Dubai.

line of thought and emulation. It is about pulling together in unison, synergy, consistency and harmony,” he asserted.

Our Corporate DNA defines who we are, the way in which our culture and our way of conducting business are unique.

“Our brand distinguishes us and it is the individuality and diversity of our employees that ultimately empowers us. We are F.A.M.I.L.Y. At Hellmann, we are committed to supporting diversity in a constantly changing environment, which is shaped by globalization, changes in values and demographics, and continuously increasing complexities,” he emphasized.

The industry is also getting increasingly crowded as more players enter the ring. There is oversupply of service providers, margins are dwindling and the downturn has adversely impacted business and sharpened competition but Kurup’s concerns are more banal than business.

“Traditionally the supply chain & logistics industry in the region has been largely reactive rather than proactive and that has proven detrimental to the trade. It would almost seem that many companies are in the logistics space not by choice but by default or for lack of better opportunities in other industry sectors,” he maintains.

Another concern he echoed was the lack of good-calibre, well-qualified talent to the industry that is not attracting the crème de la crème of the finest brains in the business. Kurup challenged companies to make the industry amenable and attractive to young professionals who intend to make a career and to make logistics the profession of choice to budding talent.

Kurup also envisions Hellmann to become a logistics provider of choice to an increasingly bigger clientele that seek to harness its services. “Our work culture follows a corporate work ethic that is conducive to fostering a strong and professional relationship with our clients, working hard & efficiently to meeting needs and building customers’ trust, building momentum and consolidating partnerships along the way. We now have the business acumen, assets, expertise, experience and skills to provide a high quality service and to care for our clients’ interests,” he concluded.

Entrepreneur Indian Innovators Awards 2014 Madhav Kurup, CEO-MENA, Hellmann Worldwide Logistics, was the recipient of the recent Logistics Innovation Award at the inaugural Entrepreneur Indian Innovator Awards 2014, hosted by Entrepreneur Middle East at a glittering, well-attended and sit-down dinner ceremony held at the Westin Mina Seyahi Beach Resort & Marina.

Kurup received his Logistics Innovation Award amid applause from the Chief Guest, Anitha Nandini, Consul– Commerce, Press and Information, Consulate General of India in Dubai, UAE, who presided over the event as the Chief Guest and keynote speaker On the occasion of the first annual Entrepreneur Indian Innovator Awards, BNC Publishing as part of the Entrepreneur MENA Franchise and Publishers of Logistics News Middle East, awarded businesses and individuals across multiple categories in December 2014. The recipients of the Indian Innovators have established themselves as clear industry leaders who have made significant contributions to the Middle East business arena, and set the benchmark for corporations operating across the region.

In his speech addressing the gathering on behalf of BNC Publishing, Director Wissam Younane, highlighted the wealth of talent, resource and noted the ingenuity, innovation and inspiration of the Indian expatriate business and professional community. “SMEs act as the cornerstones of flourishing economies- it is said that any truly healthy commercial space has a wealth of both multinationals and SMEs working hand in hand. The same can be said about you, the innovators distinguished this evening. In this room, both large scale and small scale enterprises are represented, and you are the force behind the growth of the emerging economies that we are successfully operating in today,” he affirmed.

The Award was presented to industry veteran Madhav Kurup for his stellar and sustained contribution to the supply chain and logistics industry during his long and accomplishments-laden career in the UAE. Speaking exclusively to Logistics News Middle East, Madhav Kurup remarked: “I am deeply honoured and humbled by this recognition. I was away travelling when officials broke the good news and I was delighted. I also believe that this was a direct tribute to Hellmann Logistics since it has shaped my career over the past over six years. I thank BNC Publishing for this initiative and was proud to share the platform at the Entrepreneur Indian Innovator Awards 2014, with other prominent and distinguished of my compatriots.”

Logistics News ME | January 2015 | 25

COVER STORY

Hellmann Worldwid

1871 Carl Heinrich Hellmann founds the company as a one-man business delivering goods by horse-drawn cart.

1925

1925

Hellmann is An innovaone of the first tion in efficompanies to cient transsuccessfully port replace their management: horse-drawn Hellmann fleet with launches a coal-powered large scale trucks in (LTL) consoliGermany. dated freight terminal with 60 employees.

26 | Logistics News ME | January 2015

1961 Until 1961 horse-drawn carts were also in use.

‘Lisa’ was the last horse at Hellmann, which drew a cart.

1968

1976

After more than 20 years post-war growth and expansion across Europe the company´s shares are transferred to the fourth generation, Klaus and Jost Hellmann.

Hellmann becomes a founding member of the Parcel System Service (DPD).

COVER STORY

de Logistics Timeline

1999

2002

2003

2007

Established

Opening of Abu Dhabi and Jebel Ali Free Zone Offices

Opening of Dubai Airport Cargo Village facility

Opening of Audi Volkswagen Middle East facility

2010

2014

Opening of Jebel Ali Free Zone Dedicated Chemical facility

Completion of the expansion to double the capacity of the Healthcare facility

Logistics News ME | January 2015 | 27

O C E A NA I R A FC RE E LI GO HG TI S T I C S

GAC PINDAR’S EASILY NAVIGATES VOLVO OCEAN RACE LOGISTICS CHALLENGE

112 race village containers arrived through Khalifa Port, Abu Dhabi and departed via Jebel Ali Port in Dubai

The leading boats of the Volvo Ocean Race recently arrived into Abu Dhabi’s Khalifa Port and behind the scenes GAC Pindar’s logistics team ensured the original race village from Alicante, in the famed Costa Blanca on Spain’s Eastern Mediterranean coast, was safely re-built in the UAE capital, 62 days and 11,672 nautical miles later, after leapfrogging the second race stop in Cape Town, South Africa.

As the official logistics provider for the Volvo Ocean Race, GAC Pindar’s role 28 | Logistics News ME | January 2015

included the logistics and customs clearance of each race village in each port.

Each stopover, including Abu Dhabi, provided GAC Pindar with a host of unique logistics challenges.

Lukas Jönsson, GAC, On Ground Team Manager, Volvo Ocean Race explained: “Between our travelling colleagues from GAC Pindar, our specialist yachting and sailing events division, and GAC Abu Dhabi we had eleven permanent staff working round the clock to make sure the whole

operation was completed without a glitch and we are proud that our efforts have meant that the Abu Dhabi race village opened on time.”

It was a busy period for large sporting events in the region and the Volvo Ocean Race had to compete for time with the customs officials with other mega events that required huge logistical input such as the Abu Dhabi F1 Grand Prix, DP World Tour Championship golf and the ISAF Sailing World Cup. To further complicate

O C E A NA I R A FC RE E LI GO HG TI S T I C S

matters, the 112 race village containers arrived through Khalifa Port, Abu Dhabi and departed via Jebel Ali Port in Dubai, and the logistics team had to deal with two sets of customs officials and ensure two sets of paperwork were completed.

Due to the sheer size of the race, 38,739 nautical miles across five continents and eleven ports including a pit-stop in The Hague in just nine months, two identical race villages were required that would also leapfrog each other across the globe.

Jönsson continued: “While the race village was open our ongoing role included the management of boatyard deliveries and material handling so that we were on call 24/7. We then had the responsibility of the all-important ‘bump out’ to make sure the race village was ready to be shipped onto Auckland (New Zealand), the fourth stopover of the race. The first air freight containers departed immediately after the race boats and within three and a half days 60% of the race village left for Auckland.”

GAC is a global provider of integrated shipping, logistics and marine services.

Launched in 2011, GAC Pindar is the go-to provider for marine and sport leisure logistics. GAC Pindar combines the global strength and resources of the GAC Group with the inside understanding of the yachting world, represented by the Team Pindar professional sailing team. GAC Pindar is the official logistics provider for the Extreme Sailing Series and the Volvo Ocean Race.

Logistics News ME | January 2015 | 29

P R O F E S S AI OI RN AFLR EP IEGRHSTP E C T I V E S

If you can’t measure it, you can’t manage it Prakash ‘PK’ Menon

If you can’t find the time to learn what to measure, how to measure it and what the results mean, or you’re burying your head in the sand and running your retail business based on last year’s results, you may as well shut your doors right now.

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

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

Prakash ‘PK’ Menon helps entrepreneurs, retailers, corporate professionals, CEOs and aspiring business owners, speakers and mentors achieve world class results Every retailer would be familiar with the sayings, ‘If you can’t measure it, you can’t manage it’ and ‘If it moves, measure it’. But how many of you have adopted these sayings as business mantras and actually put them into regular practice? Without applying the right metrics, there can be no way of measuring your company’s overall performance as well as its performance at a departmental, staff, range and item level, to name just a few.

At the end of the day you can’t change what you don’t know. To use an analogy, imagine if you were driving your car and all of a 30 | Logistics News ME | January 2015

sudden a red light appeared on your dashboard and you had no idea what that red light meant. Once your brakes began to fail, you suddenly realize (almost too late) that the red light was a warning indicating a problem with your brakes! If you can’t find the time to learn what to measure, how to measure it and what the results mean, or you’re burying your head in the sand and running your retail business based on last year’s results, you may as well shut your doors right now. Why?, because nothing will put you on the fast track towards failure more quickly than if you fail to monitor and manage your key numbers.

P R O F E S S AI OI RN AFLR EP IEGRHSTP E C T I V E S

Every retailer would be familiar with the sayings, ‘If you can’t measure it, you can’t manage it’ and ‘If it moves, measure it’. But how many of you have adopted these sayings as business mantras and actually put them into regular practice? Without applying the right metrics, there can be no way of measuring your company’s overall performance as well as its performance at a departmental, staff, range and item level, to name just a few.

At the end of the day you can’t change what you don’t know.

To use an analogy, imagine if you were driving your car and all of a sudden a red light appeared on your dashboard and you had no idea what that red light meant. Once your brakes began to fail, you suddenly realize (almost too late) that the red light was a warning indicating a problem with your brakes! If you can’t find the time to learn what to measure, how to measure it and what the results mean, or you’re burying your head in the sand and running your retail business based on last year’s results, you may as well shut your doors right now. Why?, because nothing will put you on the fast track towards failure more quickly than if you

Don’t play the game by yesterday’s rules

In today’s fast moving world, where every competitor is constantly vying for the attention of your customers, where new product lines are being introduced daily, and where your customers are better researched and more selective than ever before, you simply can’t afford to play the game by yesterday’s rules. If you aren’t regularly and consistently monitoring your numbers, how can you possibly fix what’s not working and do more of what’s working well?

If, like many retailers, you’ve put retail metrics in the ‘too hard basket’, think back to when you first learned to drive. It was all so new and you really had to think about every move you made. But now you just get in your car and you’re competent without even thinking about it. The same is true when you learn anything new, including retail metrics. It’s about moving from a state of ‘unconscious incompetence’ (where you don’t know what you don’t know) to ‘conscious incompetence’ (where you acknowledge that you don’t know it) to ‘conscious competence’ (where you know what you’re doing but really have to think carefully about every step) and finally onto ‘unconscious competence’ (where doing it is second nature). With consistent practice, keeping your finger on the pulse of your business will become second nature too.

Avoid the ‘overwhelm factor’

In any retail business today, there are so many different things you could be measuring, that you could technically spend 100% of your time measuring, which would take your focus off the key retailing activity that brings the dollars in - the doing!

Therefore I would add a third mantra into the mix, which is, ‘Measure what matters.’ Start by identifying the aspect of your business where improvement will have the greatest positive impact on your results and measure that. Then move on to the next most significant measurement, and so on. Starting with small steps will prevent you from falling victim to the ‘overwhelm factor’, which is the reason why most retailers fall off the rails when it comes to tracking their numbers. Once you start measuring what matters, you will find it so much easier to manage the right aspects of your business in the right way. With regular measurement and management, improvement, progress and success will follow.

Logistics News ME | January 2015 | 31

O E M S A SI HR AFPRI EN I GG HF TU T U R E

EXCELLING WITH INNOVATIVE OEM SOLUTIONS Bradman Lake equipment from Rockwell Automation

Original Equipment Manufacturers (OEMs) are increasingly been seen as the harbingers of the future. Mohamad Hawchar, Sales Manager—OEM Segment, Rockwell Automation ME, talks exclusively to Logistics News Middle East on the company’s focus on smart, safe & sustainable manufacturing that delivers results

Every company in the Original Equipment Manufacturer (OEM) space is challenged to differentiate itself amidst global competition and rapidly evolving technology. Within today’s dynamic marketplace, customers demand innovative solutions that increase business agility, optimize productivity, and achieve sustainability objectives, all while lowering their total cost of ownership.

To effectively compete in this global marketplace, one needs to define value beyond the cost of machines and maximize company performance.

Whether measured from a business, commercial or technical perspective, Rockwell Automation can improve machine builder performance with solutions and services to lower the Total Cost to Design, Develop, and deliver machines and meet customers’ requirements, averred Mohamad Hawchar, Sales Manager, OEM Segment, Rockwell Automation Middle East in an exclusive interview with Logistics News Middle East.

32 | Logistics News ME | January 2015

O E M S A SI HR AFPRI EN I GG HF TU T U R E

Bradman Lake equipment from Rockwell Automation

What industry divisions do Rockwell Automation Original Equipment Manufacturer (OEM) find applications in and what is the scope of your activities & capabilities in this sector?

Rockwell Automation’s OEM Solutions range in the following sectors: Converting, print and web handling. Our broad portfolio and domain knowledge can help design, develop, and deliver innovative machines that meet customers› requirements from the simplest to the most demanding.

Manufacturing & Assembly: Our complete solutions, end user relationships, global engineering support and network of Encompass partners enable customers to spend less time coding and more time adding value to machine solutions, ultimately helping reduce development time and costs, meet customer lead times and expand business.

Material Handling: Our range of solutions can improve customer›s operation by finding the optimum configuration of equipment and information technology for an effective material-handling system, a solution that gives a competitive advantage.

Packaging: Packaging equipment must be flexible enough to keep up with frequent line changes and scalable enough to handle the introduction of new products. We help meet these challenges through a single hardware and software solution and programming templates and tools.

Power and Energy: As a Power & Energy OEM, our focus is providing the right equipment to help manufacturers provide electricity to their customers, reliably and whenever it is needed.

Process: Our modular programming

guidelines, PlantPAx™ Process Automation System libraries, and productivity toolkits provide Process OEMs unmatched technology and economic advantages.

How significant is Material Handling Systems and the supply chain / logistics sector for Rockwell Automation?

Manufacturers are looking for ways to produce and ship product to end users faster, less expensively and above all with increased quality, all while looking for ways to reduce overhead and meet new security and safety requirements. These challenges represent new opportunities for material system integrators, OEMs and their control systems.

The material handling industry covers an unusually wide range of applications and end user sectors. Traditionally, machine builders and integrators in the material handling industry divide themselves into the following categories: Warehousing & Distribution; Airport Baggage Handling; Manufacturing Bulk Handling and Postal & Parcel Delivery.

Our range of solutions can improve customer›s operation by finding the optimum configuration of equipment and information technology for an effective material-handling system, a solution that gives customers a competitive advantage.

We understanding what material handling machine builders need and deliver accordingly.

As a complete automation supplier for material handling machine builders, our portfolio of control and information products, global service and support network, and resource-rich network of business and technology partners help

customers gain broader market reach and get machines to market faster. Our solutions deliver great value because they go beyond offering superior features and benefits to help positively impact business and we customize solutions for customers with our broad product portfolio that helps develop machines with the right amount of control, power and information, but with the flexibility needed to make future adjustments.

How is Rockwell Automation faring in the Middle East and what potential do you foresee for the company in the future in the region?

Rockwell Automation is a world leader in industrial automation with a reputation for innovation, quality and reliability established through its Allen-Bradley and Rockwell Software brands. World-wide Rockwell Automation employs over 22,000 people.

The Middle East houses a core team of Sales and Account Managers, Application Engineers and Technical Specialists around the region. Additional customer support is provided by product and industry experts, a training centre and a 24 hour technical support team. Our own experts are backed up by the staff of our distributors in the region.

Whether it’s an end user looking to procure automation products to support their business objectives, or an OEM looking to increase their business opportunities, Rockwell Automation Middle East is a partner they can depend on. So, whatever are the automation needs of our customers and wherever they are, Rockwell Automation has the products, services and people in place to ensure customers get a Logistics News ME | January 2015 | 33

O E M S A SI HR AFPRI EN I GG HF TU T U R E

Our range of solutions can improve customer›s operation by finding the optimum configuration of equipment and information technology for an effective materialhandling system, a solution that gives customers a competitive advantage. complete automation solution.

For example, Rockwell Automation recently acquired vMonitor, a global technology leader for wireless solutions in the oil and gas industry. vMonitor delivers innovative monitoring and control solutions for wellhead and upstream applications that combine cutting-edge wireless instrumentation and communication with visualization software.

What challenges do you foresee for the region from a technological point of view?

Operations leaders are tasked daily to operate at peak efficiencies and maximum capacity. At the same time, they must achieve goals for compliance, workforce alignment, safety, supply chain logistics, sustainability and quality, often among multiple facilities. Achieving operational excellence is a constant challenge. Guided by initiatives such as lean manufacturing, continuous improvement today is dependent on access to the right information at the right time.

We understand both the challenge and the information-based solution because we are improving our own global manufacturing enterprise every day. In the big data era, access to information is more important than ever as global

34 | Logistics News ME | January 2015

competitive pressures mount. Meanwhile, skilled workers are retiring and legacy equipment is becoming obsolete. The information-enabled connected enterprise offers a competitive response.

We take a holistic, open-systemsoriented approach to connecting customer enterprises. With our strategic partners Cisco, Microsoft and Panduit, we help operations leaders address their control, network and information solutions needs. Grounded in our industrial expertise, accelerated by advances in enabling technologies – including the Internet of Things, data analytics and connected devices – and complemented by government and industry initiatives, including the Smart Manufacturing Leadership Coalition, Industrie 4.0 and Smart Factories, the connected enterprise helps customers more efficiently access operating data and turn it into profitable working data capital. That means meeting today’s KPIs while uncovering insights for tomorrow’s opportunities.

What are your long term objectives for the region and what potential do you foresee going forward?

Information is power.

Helping customers harness it to bring our connected enterprise vision to life has

been a priority for decades. Guided by our industrial expertise, accelerated by advances in enabling technologies – including the Internet of Things, data analytics, remote monitoring & mobility and complemented by government & industry initiatives, including the Smart Manufacturing Leadership Coalition, Industrie 4.0 and Smart Factories, the connected enterprise puts that power to work for our customers.

It drives better decision making, exposes inefficiencies and sparks collaboration. It helps operations managers profitably manage and improve manufacturing and industrial processes, and IT executives reduce network complexities and exposure to cyber security risks. It shares productivityimproving information to workers across the organization in a context that is meaningful for each role.

The information-enabled connected enterprise is a more competitive enterprise. It creates tremendous opportunities for those taking advantage and great risks for those not preparing a strategic response. Explore how Rockwell Automation is evolving its own global operations and helping its customers join the industrial revolution by leveraging real-time decision making to drive profitability.

AAPI PR O FI NR TE IMGEHNTT

New appointment at Emirates SkyCargo

Henrik Ambak

Emirates SkyCargo has appointed Henrik Ambak to the position of Senior Vice President, Cargo Operations Worldwide.

Ambak, a Danish national, took up his new position in Dubai earlier this month.

He joins Emirates SkyCargo after having spent the past 27 years in various roles in the air cargo industry, having worked for companies such as Novia, CSLux and Cargolux Airlines. He started his career as a freight forwarder, and then moved into ground and cargo handling, before joining Cargolux to oversee cargo and ground

handling, trucking, standards and procedures, network delivery, ground safety, ULD management, Customs and e-Business, as well as IT systems used by the commercial division.

In his new role, Ambak will be responsible for the management of all Emirates SkyCargo’s operations at its hub in Dubai, comprising the Cargo Mega Terminal at Dubai International Airport and Emirates SkyCentral at Dubai World Central, as well as the operations at the

more than 140 outstations across the world.

“Henrik has vast experience in the air cargo industry and this will make him a great addition to our team. He joins us at an exciting time when we are experiencing good growth, particularly with the recent start of freighter operations at Emirates SkyCentral and the expansion of our current facilities at Dubai International. We look forward to him making a valuable contribution to our business,” affirmed Nabil Sultan, Emirates Divisional Senior Vice President, Cargo.

Logistics News ME | January 2015 | 35

SAUDI MARITIME CONGRESS REPORT

US $ 30 billion investment spurs Saudi Maritime sector Saudi Arabia is experiencing exponential growth in its ports and shipping sectors, particularly in relation to the number of mega infrastructural land and sea projects planned and currently in progress, totaling more than US $ 30 billion within the government’s current five-year plan.

HE Dr. Jubarah Bin Eid AlSuraiseri, delivering the keynote address at the Saudi Maritime Congress

HE Dr. Jubarah Bin Eid Al-Suraiseri, the ex-Saudi Arabian Minister of Transport and Chairman of Saudi Ports Authority inaugurated the first, two-day, recently concluded Saudi Maritime Congress at the Sheraton Hotel in eastern coastal city of Dammam, the capital of the Kingdom’s Eastern Province.

Saudi Arabia is experiencing exponential growth in its ports and shipping sectors, particularly in relation to the number of mega infrastructural land and sea projects planned and currently in progress, totaling more than US$ 30 billion within the government’s current five-year plan.

The Congress opened with an official introduction from Eng. Abdul Aziz Mohammed Al Tuwaijri, President, Saudi Ports Authority and Chairman of the Organizing Committee, followed

by HE Dr. Jubarah Bin Eid Al-Suraiseri, who delivered the opening address. The Minister stressed the importance of a vibrant and healthy maritime industry to the overall Saudi economy.

Experts presented a series of papers to more than 200 delegates at the First Saudi Maritime Congress that highlighted the Kingdom’s rapid seaport infrastructure development and overall investment in transport and logistics.

The Conference, which was organized by Seatrade along with its strategic partner The National Shipping Company of Saudi Arabia (Bahri), attracted over 300 maritime industry professionals, who gathered for two days of insightful analysis and interactive panel discussions, addressing current industry issues and debating the latest trends and analysis.

“With over US$30 billion of investment into major land and sea infrastructural projects designed to support long term maritime trade growth in the Kingdom, there are clearly huge opportunities for companies across the ports and shipping sector,” affirmed Chris Hayman, Chairman, Seatrade, organizers of the Saudi Maritime Congress.

36 | Logistics News ME | January 2015

According to informed sources, the new mega Saudi port projects include Jeddah Islamic Port (JIP) which is currently undergoing an expansion project, which will eventually increase capacity by 45%. The Red Sea Gateway Terminal (RSGT) was launched at JIP with the facility receiving its first vessel, with the RSGT project having a 1.8 million twenty-foot equivalent unit (TEU) capacity. The US$ 510 million project has been developed on 400,000 square metres of reclaimed land and has a 740 metre main berth, plus a 390 metre feeder berth.

Other major projects include, the seaport in phase one of the US$ 26 billion, King Abdullah Economic City (KAEC), which opened earlier last year in January 2014 and was designed to become one of the top ten ports in the world. Other mega projects include MARAFIQ’s Yanbu Industrial City - Marine Facilities (US$

SAUDI MARITIME CONGRESS REPORT

“With over US $ 30 billion of investment into major land and sea infrastructural projects designed to support long term maritime trade growth in the Kingdom, there are clearly huge opportunities for companies across the ports and shipping sector.”

The Saudi Arabian Minister at the inaugural ceremonies

Jay Ne, CEO, IPS

210 million) and Saudi Aramco with their Dareen Port Expansion Project (US$ 35 million) on the Kingdom’s East Arabian Gulf Coast which is due to be completed in Q12015.

«Shipping lines want to come to port for the same length of time, but with more cargo; they want to come for the same length of time, but with larger vessels, so it is our job to look after those vessels,» commented Jay New, CEO of International Port Services Company (IPS), a joint venture between Hutchison Port Holdings and the Maritime Company for Navigation which has the Dammam container terminal concession at King Abdul Aziz Port.

Speaking at the conference, Hassan Abouraya, consultant engineer, business development, international marketing & risk management executive at Zamil Offshore Services discussed the urgent requirement for a large repair facility of the Red Sea Coast.

«On the Red Sea, there are more than 25,000 merchant vessels navigating North and South. Only two old repair yards with limited docking capabilities are available in Jeddah and Suez, there is room for at least one world class ship repair yard to be built.»

Some progress has been made on that front, as Zamil

Offshore itself already has plans for a joint venture project to build a large shipyard on the Red Sea coast to repair VLCC tankers up to Suezmax size and shipbuilding capabilities up to 20,000 deadweight tonnage (DWT).

Saudi-based Bahri and Aramco have also signed an MOU with Singapore-based engineering company Sembcorp Marine, to conduct a feasibility study to build a world class shipyard in Saudi Arabia capable of the design, building and repair of very large merchant vessels.

The Congress also examined the Kingdom’s expanding maritime sector with a line-up of respected international industry experts presenting their perspective on what the industry can offer in terms of employment opportunities for Saudi nationals in an interactive round table format.

Panelists included Alaa Khawaja, Senior Lecturer, Faculty of Maritime Studies, King Abdulaziz University, KSA; Mark Robertshaw, Managing Director - Isle of Man & Commercial Director, Bibby Ship Management, UK; Mathijs Wagemans, Head of Department, Port Shipping and Transport Management, IMCO, Oman; Dr. Malcolm Willingale, Director, Cambridge Academy of Transport, UK; Capt. Ahmed Youssef, Director, International Forum for Maritime Transport, Arab Academy for Science, Technology and Marine Transport, Egypt; and Tom Boardley, Marine Director, Lloyds Register Marine, UAE. Logistics News ME | January 2015 | 37

CROWN RECOGNITION

Crown QuickPick Remote wins German Design Award 2015

The lift truck itself sets a high ergonomic benchmark, but can also be manoeuvred from a distance using the unique remote-control glove, with laser sensors on the truck ensuring safe operation

The German Design Council recently awarded New Bremen, Ohio, USAheadquartered Crown, one of the world’s largest material handling companies, its German Design Award 2015 in the “Industry, Materials and Health Care” category – in honour of the company’s semi-automated QuickPick Remote order-picking system.

In doing so, the Council acknowledged the well-designed concept behind the technology that combines a Crown low-level order picker with a remotecontrol glove. The awards ceremony will take place in Frankfurt am Main in February 2015.

The Design Council jury explained the reasons for its decision as follows: “QuickPick Remote is the world’s first semi-automated order picker of its kind and an impressive design achievement. The lift truck itself sets a high ergonomic benchmark, but can also be manoeuvred from a distance using the unique remote-control glove, with laser sensors on the truck ensuring safe operation. This greatly reduces the distances drivers must walk while carrying loads, and improves productivity by up to 25 percent. A modern, dynamiclooking design reflects the visionary nature of this patented technology in every detail. An exceptionally high standard!”

Jim Kraimer, Crown’s Director of Design, remarked, “We are honoured to be recognised for this prestigious achievement. This is one of those unique innovations that truly simplifies the order picking process and creates a ‘winwin’ for both management and hard-working drivers.”

Quick Pick Remote makes for faster, safer order picking

This latest award by the German Design Council once again validates this innovative technology’s tangible benefits and genuine added value. The seamless interaction of operator with lift truck opens up new opportunities for reducing costs and increasing productivity without in any way compromising operator safety.

The international panel of specialists who judged the German Design Award competition was made up of 30 design experts from business, academia and the design industry. The panel selected the best entries out of more than 2,250 high-calibre submissions from all over the world, bestowing awards that acknowledged outstanding national and international achievements in ten different categories of product and communication design respectively.

The Design Council was set up as a foundation in 1953 with the support of the German Federal Parliament. It is an independent institution that operates internationally, assisting companies to communicate their design skills effectively while at the same time seeking to improve the general public’s understanding and appreciation of design.

38 | Logistics News ME | January 2015

Crown Quick Pick RemoteCollage Awards

NEW PRODUCT INTRODUCTION

Konecranes unveils the new, powerful CLX chain hoist crane The new Konecranes new CLX chain hoist crane has the flexibility to be configured into a diverse range of industrial environments, to fulfill customer lifting needs – from the most basic to the most demanding Konecranes new CLX chain hoist crane, available from 500kg to 5T lifting capacity

As a leading global provider of lifting solutions, Konecranes has steadily developed its product range in order to offer its customers safe, top-quality, and high-performance lifting equipment for greater productivity. One of the latest enhancements to the industrial cranes portfolio is the new CLX chain hoist crane.

Available in safe working loads the CLX chain hoist is suitable for many different industries, like general manufacturing or maintenance applications, it has the flexibility to be configured into a diverse range of industrial environments, to fulfill customer lifting needs – from the most basic to the most demanding.

RELIABILITY AND PERFORMANCE YOU CAN COUNT ON Durable components, compact headroom, and a high level of operating safety results in excellent performance, with 300 starts per hour. Standard

temperature monitoring prevents the motor from overheating, while additional standard van ventilation leads to improved hoist performance.

SAFETY COUPLED EXTENSIVE PRODUCT LIFE

WITH

In lifting operations, the brake of the chain hoist is an essential part of the product safety. In the CLX chain hoist, the new self-adjusting brake has been designed for multiple operations for the entire lifespan of the hoist. For additional safety, the brake and the clutch have been installed on the same axle, which ensures that the load will not drop or micro slip, even if the clutch should fail.

CLX HOIST USED FOR MANUFACTURING IRRGATION EQUIPMENT IN DUBAI Another case, in which the CLX product has proven its reliability, is in the

production and handling of pipes and irrigation equipment at Valmont in Dubai, UAE. The company now has two cranes in operation.

ERGONOMICS & DESIGN The ergonomic features of the CLX chain hoist crane support a safe and smooth workflow. The wide functionality of the hoist is further complimented by its modern looks for which it was awarded with the RedDot Award for excellent product design.

EASY MAINTENANCE & REDUCED DOWN TIME The CLX chain hoist provides swift maintenance access. All components that require maintenance are easily accessible and do not require the removal of any parts, which makes maintenance significantly easier and faster.

Logistics News ME | January 2015 | 39

CASE STUDY

TOP REGIONAL LOGISTICS COMPANY ENHANCES DATA STORAGE CAPABILITIES Across the MEA region, which is the fastest growing IT market in the world, International Data Corporation (IDC) estimates that spending on IT products and services will likely grow by over 7% to reach US $ 32 billion in 2014 Agility, the largest logistics company in the Middle East, has partnered with STME, the region’s leading solutions provider and systems integrator, in enhancing the firm’s data storage capacity and modernising its server infrastructure.

globally as well, said Ahmed Hassan, Support and Professional Services Director, STME. “Explosive data growth has prompted the need for larger and more complex storage solutions as old storage architectures reach their performance, availability and capacity limits.”

Sohiel John D›Silva, IT Manager, Agility, said they have heightened efforts to improve their business continuity programme in line with their business’ rapid international expansion. Agility currently employs over 20,000 people worldwide and generates annual global revenue of over US $ 4.8 billion.

Across the MEA region, which is the fastest growing IT market in the world, International Data Corporation (IDC) estimates that spending on IT products and services will likely grow by over 7% to reach US $ 32 billion in 2014.

Ahmed Hassan

“Our growth over the years has been phenomenal and with that comes the need to make sure that our data storage solutions are up to speed in order to respond to our data growth requirements,” stated D’Silva.

“Partnering with STME has allowed us to reach this objective.

In addition, we have sought their expertise in transitioning to the VMware ESXi virtualisation technology so as to align our IT infrastructure with our organisation’s ever-shifting business strategies,” D’Silva added.

Agility’s IT requirements reflect a growing trend among enterprises not only in the Middle East and Africa (MEA), but 40 | Logistics News ME | January 2015

As a result, companies are increasingly relying on virtualised infrastructure, enterprise storage platforms and private cloud solutions to keep pace with their organisation’s performance demands, Ahmed Hassan remarked.

In order to meet Agility’s requirements, STME implemented a complete technology refresh, said Ahmed. “We proposed the adoption of NetApp FAS2240 and Data OnTap O/S 8.2.x during the refresh. NetApp FAS2240 is a small and dense, yet highly scalable storage system, while Data OnTap O/S 8.2.x is a storage operating system, which can adapt to Agility’s changing business needs, giving them a clear path should they opt adopt private, public or hybrid cloud in the future.”

STME also deployed the best-fit storage application of SAS for performance and SATA network-attached storage (NAS) for future data growth. The results include complete data migration with minimal downtime, a robust and scalable technology and increased storage capacity to help Agility further grow its operations.

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!"#$%&'(')*$+!'('$&#*," !"#$%&#'(")('%&'*+'#,-.'&%'$-/'#'%&$"01$$23 4'',-(5&2"6#&.+'0-7-0&+#"8'0,&(''%.9

!!!"#!$%#&'"'(")* !"#$%&$'$()'*+,#$)&'-,../)'0%1$'231,#)11'$)%4'25')4%,/'67+%38(9$+,#$)&86"3:7&"4';"6';36$()6',#;"64%$,"# Logistics News ME | January 2015 | 41

LOGISTICS & THE LAW

CHANGES TO MARITIME LAWS & THEIR IMPLICATIONS Advocate Joy Thattil Ittoop

All those who trade with Spain and who are interested to know about the newly introduced Spanish Shipping Act 2014, can get apprised with this Article. The Act which came into force this September 2014, has changed the law considerably, and looks into further development of other areas. The law is indicative and reflective of existing laws and proposed changes to applicable to maritime laws to the European Union (EU) and across the wider European continent.

The changes proposed have wide implications and are the precursor of more changes to come. Interested parties need to consider how these changes will affect their business and their practical side. The most interesting change is that of the status of Letters of Indemnity (LoI), however, it is also important to note that the mentioned change in the status of the LoIs are not too dissimilar from the position under present English law. As per English law, LoIs are unenforceable if there is no ‘genuine dispute’ over its subject matter, for instance, a LoI issued for a cargo of clearly rusted and damaged steel which is shipped ‘clean on board’ (see Brown Jenkinson vs Percy Dalton [1957] 2 QB 621).

Similarly, the changes to the terms under which limitation can be invoked are also equally important, which would be subject to the LLMC 1976 Convention / 1996 Protocol, but from which Spanish law has excluded the liability for wreck removal of the 42 | Logistics News ME | January 2015

vessel or its cargo.

For completely and successfully relying on law and jurisdiction clauses against third party holders of bills of lading, the requirements under Spanish law still make it a difficult proposition to successfully force such a party to comply with the clauses it did not directly agree to, namely enforcing a London arbitration clause against the Spanish receiver of a cargo. If we consider this aspect, the present EU legal position continues to remain demeritorious to owners and charterers that seek to enforce the terms in bills of lading which was otherwise clearly incorporated or expressly stated.

Another important practical application is the clear demarcation or segregation of the authority between the master and the pilot of the vessel. The master remains primarily responsible for the safe navigation of the vessel even if under pilotage. Therefore, a master has to pay close attention to a pilot’s input, and be ready to override if any emergency situation arises and which requires for the immediate safety of the navigation underway.

Regarding the provisions on stowaways, successful repatriation of stowaways continue to be a challenge to the members and it could be done by way of disembarkation at Spanish ports, not because many of the stowaways would be from African countries, however now there remains a high risk of such people due to the outbreak of Ebola in West Africa.

ETIHAD CARGO

ETIHAD CARGO PRIMED FOR RECORD 2014 PERFORMANCE

Etihad Cargo’s performance, based on strong market demand, the expansion of its global reach, and the smooth handling operations at its hub in Abu Dhabi, has already enabled it to secure over US$ I billion in revenue to-date.

Etihad Boeing 777-300ER

All indicators point out to a good performance for Etihad Cargo in 2014.

It attained an all-time record in November 2014 when it carried 53,292 tonnes across its global network in one month.

This is an increase on its previous monthly record of 51,688 tonnes carried in October, up seven per cent on the same month last year. Etihad Cargo’s total uplift for 2014 is forecast to top 570,000 tonnes, a 17 per cent increase on 2013.

This performance, based on strong market demand, the expansion of its global reach, and the smooth handling operations at its hub in Abu Dhabi, has already enabled Etihad Cargo to secure over US$ I billion in revenue to-date.

Etihad Cargo has significantly enhanced its global reach by offering belly-hold capacity on 10 new passenger destinations launched across Etihad Airways’ fast growing network during the year. These include Medina, Jaipur, Los Angeles, Zurich, Yerevan (Armenia), Rome, Perth, Phuket, Dallas and San Francisco, bringing to 90 the total number of passenger destinations on which cargo services are currently provided.

During the year Etihad Cargo also expanded its freighter services to several new markets to capitalise on the strong import and export demands between global financial centres and the emerging markets. This included the introduction of new weekly services to Dar Es Salaam and Entebbe in East Africa, a three-times-a-week service to Hanoi in Vietnam, and a twice-weekly service to Moscow in Russia.

This brings the number of freighter-only destinations currently operated by Etihad Cargo to 15, with other routes including: Chittagong (Bangladesh), Djibouti, Dubai World Central, Eldoret (Kenya), Guangzhou, Houston, Kabul, Miami, Quito, Sharjah and

Viracopos (Brazil).

Etihad Cargo also launched a new twice-a-week freighter service from Milan to Bogotá, Colombia, and from Bogotá to Amsterdam, following a partnership agreement signed with Avianca Cargo, the cargo division of leading Latin American carrier Avianca.

A key success factor has been Etihad Cargo’s ability to further extend its global reach through the network expansion of its codeshare partners, which enables it to provide additional bellyhold space on airberlin’s new passenger services from Berlin and Stuttgart to its hub in Abu Dhabi, and on NIKI’s new service from Vienna.

It also includes Air Seychelles’ new services from Mahé to/from Mumbai (India), Antananarivo (Madagascar) and Dar es Salaam (Tanzania), in addition to existing direct services from Seychelles to Johannesburg, Mauritius and via Abu Dhabi to Paris and Hong Kong.

Kevin Knight, Etihad Airways’ Chief Strategy and Planning Officer, remarked: “Our business continues to grow as we work with our global partners to provide customers with a fully integrated global cargo solution. By working together, we are able to achieve greater capacity utilisation on our growing fleet of freighter aircraft, provide more bellyhold capacity across an extended passenger network, and, importantly, further develop our well-performing charter business.”

Etihad Cargo took delivery of two new freighter aircraft during the year.

This included an A330-200F aircraft, and the placement of a third Boeing 747-400 freighter from Atlas Air Worldwide Holdings Inc. The aircraft have a range of 7,400 kms and 8,240 kms respectively, and a combined payload capacity of nearly 200 tonnes. This brings to 10, Etihad Cargo’s freighter fleet which consists of four Airbus A330-200F, three Boeing B777F, and three Boeing 747F aircraft.

Logistics News ME | January 2015 | 43

IML EXPANSION

DUBAI LOGISTICS GROUP EXPANDS INTO EAST AFRICA IML prepares to carve a niche for itself in Africa where according to a report, logistics spending on the continent by manufacturers and retailers will increase by almost US $ 28.8 billion, or 5.19 per cent to US $ 157.3 billion in 2016 markets as many countries and regions are landlocked, with very limited access for delivery of supplies and goods. From our head office in Dubai we are able to coordinate logistical challenges originating from anywhere in the world and our goal is to now serve as a ‘highway’ into East Africa, offering business and organisations easy access to both new and established markets in the region,” he added.

In Ernst and Young’s Africa Attractiveness Survey for 2014, three of the five emerging hotspots (Kenya, Mozambique, Uganda, Tanzania and Zambia) for investment are in East Africa.

Lakhani referred to a 2013 report by British researchers, Analytiqa, which projects logistics spending in Africa by manufacturers and retailers will increase by almost US $ 28.8 billion, or 5.19 per cent to US $ 157.3 billion in 2016. The size of the outsourced logistics market alone will increase by 38.4 per cent in a four-year period. The report also predicts food commodities and agri-business will be key drivers as countries move to higher levels of food processing and trade in food products. Facilitating this trade ‘will require vast improvements in cold-chain services, including both transport and temperature controlled storage facilities,’ the report says.

Mark Millar Kishore Lakhani

Indu Maritime & Logistics (IML), the freight forwarding and distribution arm of the Indu Group, has made the first move in its aggressive growth strategy by expanding operations into East Africa, as the company seeks to increase its presence in rapidly growing African markets.

The company has established a new regional head office in Djibouti on the Horn of Africa and has contracts into five more East African nations, building Indu Logistics into one of the best connected trade and supply chain providers in the region.

Indu Maritime and Logistics Chairman, Kishore Lakhani, remarked: “Africa’s markets are being driven by higher trade volumes as local economies diversify and expand. Domestic consumer demand continues to grow and global demand for natural resources escalates. These drivers, as well as improvements to infrastructure, are boosting international and intra-African trade, creating a growing need for logistical support and expertise.

“Djibouti is the key to successful expansion into the East African 44 | Logistics News ME | January 2015

The report adds that by 2060 there will be 1.1 billion Africans in the middle class, creating a significant rising consumer base and demand for contract logistics services. Indeed, by 2011, Africa already had more households in the middle class than India.

Established in the UAE in 2006, IML provides complete supply chain solutions including freight forwarding, transport, warehousing and distribution. IML operates close to 45,000 square meters of warehousing space around UAE and offers various kinds of storage and open yard facilities on long term and short basis for chemicals, oil & gas, project cargo, white goods and perishables.

Indu Maritime & Logistics, a freight forwarding and distribution arm of the Hyderabad, India headquartered Indu Group, specialises in a comprehensive range of supply chain and total logistics solutions. These services include air and sea freight, warehousing and distribution, door-to-door transportation, project logistics, warehouse managing, consulting, and chartering services.

IML operates on a large network, serving international manufacturers, distributors and retailers from the Chemical, FMCG, textiles, pharmaceutical, automotive, electronics and oil & gas industries.

IML EXPANSION

“Understanding the potential for the East Africa as a region, Djibouti is strategically important as it serves as a gateway to all the landlocked countries sharing its borders.”

Why did IML pick Djibouti specifically for its new regional HO? Understanding the potential for the East Africa as a region, Djibouti is strategically important as it serves as a gateway to all the landlocked countries sharing its borders. Apart from that, JAFZA and DP world have already set their foot there, operating the Port and Freezone which gave us the complete confidence in making the selection.

Can you please provide details of the Djibouti set up?

We initially started with the Duty Free operation where we run « I WORLD DUTY FREE» shops at the airport and seaport. We have also established ourselves in the Djibouti Freezone for our logistics arm.

We currently employ around 26 employees catering for this region, which again is still growing.

Identify the other five African countries you plan to make forays into?

These are Ethiopia, Uganda, South Sudan, Rwanda and Kenya What potential do you foresee in East Africa?

Trading potential has been strong for this region and we plan to represent some of the big brands of FMCG for the whole of East Africa, for which a major hurdle has always been logistics. Having said that we intend to import our strength into the region with our expertise from Dubai and we are confident we will capitalize on the opportunity.

What challenges confront the logistics sector in these countries?

Infrastructure is the key challenge and we intend to invest on the same to

ensure the model of logistics is served well for our clients. Apart from that, local knowledge is a key aspect so we are employing people and training them to understand the global logistics model as it relates to these specialist markets.

What industry verticals will IML be serving in Africa?

Being a growing market with limited exposure we intend to take it step by step. Initially we will target the FMCG as priority, followed by chemical logistics.

How are your Dubai operations faring?

IML has been growing strategically and we are in the process of completing our new facilities in JAFZA and DWC to add on to the warehousing model.

With the EXPO 2020 on the horizon, we foresee a tremendous growth in logistics.

Do you have any presence / representation in the wider GCC / Middle East?

With our operations based in Dubai we are able to operate comfortably out of here to cover the region, working with partner agencies on the ground in other markets where necessary.

How have you performed in 2014?

The performance of the markets we operate in were as expected and the market is sensitive after the earlier recession and we expect to see a continued stable growth pattern which we have based our growth strategy on.

Logistics News ME | January 2015 | 45

SWEET NARRATIVE

A LOAD OF SWEET SUCCESS DOCKS IN JEBEL ALI PORT World’s largest sugar carrier brings 106,000 tonnes of raw sugar to Al Khaleej Refinery in Jebel Ali from Sao Paolo, Brazil UAE’s Al Khaleej Sugar recently celebrated the arrival of MV UBC OTTAWA, the world’s largest sugar carrying vessel to call at DP World’s flagship Jebel Ali Port. Arriving from Sao Paolo port in Brazil, 106,000 tonnes of sugar was discharged in Dubai in an operation lasting a whole week. Sailing since 2011, the 260 meters length vessel has a maximum load capacity of 118,625 tonnes.

At a ceremony held at the Al Khaleej Sugar refinery yard in Jebel Ali, in the presence of Al Khaleej Sugar Managing Director Jamal Al Ghurair, DP World Chairman HE Sultan Ahmed Bin Sulayem congratulated the company: “This historic call is another achievement for Dubai, reinforcing its gateway position for the Middle East and wider region,” he said.

HE Sultan Bin Sulayem added: “DP World worked closely with Al Khaleej Sugar to safely offload the raw sugar at their berth, illustrating our ability to handle all types of cargo, including food staples such as rice, flour and other perishable goods.”

Commenting on the event, Al Khaleej Sugar Managing Director Jamal Al Ghurair stated: “We are proud to host the biggest vessel in the world at the Al Khaleej Sugar berth in Dubai.

In the last few years we have seen a number of improvements and additions to our refinery as we installed new equipment that helped increase production rates and placed us as one of the 46 | Logistics News ME | January 2015

leading sugar refineries in the world.”

Al Khaleej Sugar is the first sugar refinery in the Arabian Gulf Region and the largest stand-alone sugar refinery in the world.

Based in Jebel Ali in Dubai, the company has current production capacity of 7,000 tons of refined white sugar per day, employing about 800 personnel. Since the commencement of production in July, 1995 it has made remarkable progress to achieve the status of the largest standalone sugar refinery in the world.

A world record was attained in July 2013 with a new set record of 7,270 tons of refined sugar in one single day. In 2011, the refinery set another record in terms of highest ever-annual production of refined sugar at 1.5 million tons. Its products are regularly exported to over 50 countries, including the regional countries in the Arabian Gulf Region.

Currently, it contributes to about 3% of global annual refined sugar production, and imports raw sugar from leading production areas like Brazil, India, Australia and Thailand among other countries.

Jebel Ali Port, operated by DP World UAE Region, is the largest marine terminal in the Middle East and the flagship facility of DP World’s portfolio of over 65 marine terminals across six continents.

It is, without doubt, one of the harshest environments on earth: the Empty Quarter in the Kingdom of Saudi Arabia – the largest and most barren sand desert in the world, spreading itself over four Arab nations and covering 650,000 km2 which is comparable in size to France. Temperatures range from 50° to -1°C in the course of a single day and the sand and dust are relentless. The nearest city is 1000 kilometres away. So the construction of a 256 kilometre road cutting through this wildnerness, linking Saudi Arabia to the Sultanate of Oman, called for an extraordinary solution. The response: a eet of 95 Volvo machines was assembled. Together, they shifted over 130 million m3 of sand just to build the bridge of the road – an extraordinary feat in such harsh conditions, yet the quality and power of Volvo engineering was up to the challenge. The dif culties created by the remote isolation of the worksite were answered with excellent customer support from FAMCO, the authorised Volvo dealer in Saudi Arabia, which included the organisation of mobile 247/ service workshops that moved forward with the construction operation.

Main Office: Jeddah: Old Makkah Road Kilo 6, Tel: +966 12 680 4444 Riyadh: Khurais Road Exit 30, Tel: +966 11 233 3555 Dammam: Dammam-Khobar Highway, Tel: +966 13 859 8484 Abha: Khamis Mushayt - King Fahad Road, Tel: +966 17 227 4066 Makkah: Al Haaj Road, Tel: +966 12 542 8484 e-mail: famco@alfuttaim.sa www.al-futtaim.ae

www.famcosaudi.com