Logistics News ME - July 2015

BION INDUSTRIAL

GEANT IN HIGH GEAR

FETCHR

Hardox-enabled tipper-trucks tipped for traction

Generating growth with giant strides

Technology-driven logistics & delivery solutions

CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE

GATHERING MOMENTUM

The story of Mohebi Logistics and how the indigenous giant is taking global growth in its stride

JULY 2015

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Contents Start 8 | News Scan: Roundup of regional and international news

12 | Mohebi Logistics:

Up close and personal with Mohammed Mohebi, CEO

20 | Bion Industrial:

Hardox-enabled tipper-trucks tipped for traction

features 24 | Gèant: Generating growth with giant strides

12

29 | Fetchr:

49 | DHL Qatar:

Technology-driven logistics and delivery

Superb Scorecard

52 | Recke:

34 | Massar

Cooking up success

Solutions: Ingenious land transportation

54 | Professional

Perspectives: Integration is key

18 | Abu Dhabi

International Airport: Good takeoff in passenger and freight numbers

40 | Nissan Middle

East: Speeding up growth in the region

46 | MELN:

Networking opportunities for regional professionals

29 49

56 | Hellmann-

Hisense: LSP and Manufacturer in mutually beneficial

60 | Dry Ports:

Making the case for inland cargo terminals

62 | Rockwell-Cisco: Two technology giants team up

Logistics News ME | July 2015 | 3

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Logistics News ME | July 2015 | 5

Editor’s Note HOT ON THE LOCAL TRAIL A new desert highway livens up the Empty Quarter ‘Think global, act local’ is a much hackneyed phrase even in the business context as companies and individuals are encouraged to think big and perform diligently within their local or national settings.

In the past editions of Logistics News Middle East we have covered several multinational enterprises or locally and regionally incorporated companies with international affiliations. This month we decided to get off the beaten track to report on an indigenously-developed company with no international affiliations, which has now taken centre-stage to compete with the industry ‘big-boys’.

Mohebi Logistics is a tough act to follow.

The company has grown exponentially since its inception and has announced a further US $150 million in fresh investments in Dubai World Central into a new, state-of-the-art facility that will house the new headquarters and operations of the company and the holding group. The company also plans to expand overseas in the GCC, the Indian subcontinent and the African continent.

Elsewhere, we did a one-on-one interview with Noas Al Rawi, the youthful, dynamic CEO of the Bion Industrial Group which has just launched the Hardox-steel enabled sturdy tipper trucks with wide implications for the region’s transportation and logistics business. We also engaged with Mark Anthony Lack, the Chief Operating Officer of Gèant which has been performing well in the region since the founding of its flagship Ibn Battuta Mall Hypermarket a decade ago.

Hellmann Contract Logistics and Hisense, the multina-

Editor Malcolm Dias Malcolm@bncpublishing.net Managing Director Walid Zok Walid@bncpublishing.net Director Rabih Najm Rabih@bncpublishing.net Director Wissam Younane Wissam@bncpublishing.net Group Publishing Director Diarmuid O'Malley Dom@bncpublishing.net 6 | Logistics News ME | July 2015

tional electronics and white good manufacturer have recently entered a new logistics partnership. We examined the development of this relationship in a joint interview with Simon Reah, Contract Logistics Director, Middle East, Hellmann Worldwide Logistics and Frank Lee, Logistics Manager for Hisense in the Middle East.

Other notables we spoke to include Samir Cherfan, Managing Director, Nissan Middle East on the automaker’s regional performance and importantly on the new Hybrid Pathfinder.

Serial entrepreneur Idriss Al Rifai, co-founder, Fetchr!, the newly established express delivery company which extensively uses modern GPS, smart phones and apps-based technologies for its operations, also responded to our exclusive questionnaire.

The vexatious issue of enormous food wastage has also come under the scanner as Massar Solutions shares its ‘Cold Chain’ ideas to lessen and possibly eliminate food decay during the transportation process.

The summer season is well and truly upon us but contrary to conventional belief, it is very busy here at BNC Publishing Group as we look towards year-end. We will be conducting our Inaugural Middle East Supply Chain and Logistics Summit 2015 featuring the ‘emerging industry trends’ for the region’s top trade professionals in Dubai on 9 September. Watch this space!

Group Sales Manager Jayant Dey Jayant@bncpublishing.net Marketing Mark Anthony Monzon Mark@bncpublishing.net

Group Editor Melanie Mingas Melanie@bncpublishing.net

CONTRIBUTORS Mark Millar, Joy Thattil, Prakash PK Menon

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Malcolm Dias Editor malcolm@bncpublishing.net

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Jayant@bncpublishing.net T +971 50 1971200 All rights reserved © 2014.

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Logistics News ME | July 2015 | 7

NEWS

IN THE NEWS Emirates Transport, Imdaad ink pact “We have signed a threeyear agreement with Emirates Transport for our fleet of vehicles because of their dedicated auto repair and maintenance services, delivered by their experienced teams of technicians. We are confident that with the handing over of the contract to Emirates Transport, we will be able to focus on our resources to improve our core offering by enhancing operational efficiencies and controlling costs.”

Jamal Abdullah Lootah, CEO, Imdaad

E

mirates Transport, the UAE’s leading operator of transport and maintenance services and Imdaad, the leading provider of integrated facilities and waste management solutions in the GCC, have recently announced the signing of a three-year contract for comprehensive maintenance and repair of the latter’s fleet of vehicles and equipment.

The signing ceremony took place at Imdaad’s corporate office in Dubai Festival City, where the company’s CEO, Jamal Abdullah Lootah, and Mohammed Abdullah Al Jarman, General Manager of Emirates Transport, signed the deal in the presence of senior management from both sides. According to the terms of the agreement, Emirates Transport will take over management of all fleet maintenance operations for Imdaad, offering complete vehicle maintenance and repair services.

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Mohammed Abdullah Al Jarman, General Manager of Emirates Transport remarked: “We are pleased to enter into this agreement with Imdaad, which has a huge fleet of vehicles that require regular maintenance for optimal performance.

Emirates Transport’s strength lies in its in-depth knowledge of vehicle maintenance, use of innovative technology and the latest equipment, and highly trained human resources, which empowers it to optimise the fleet to the lowest possible lifecycle cost.”

Jamal Abdullah Lootah, CEO, Imdaad, stated: “We have signed a three-year agreement with Emirates Transport for our fleet of vehicles because of their dedicated auto repair and maintenance services, delivered by their experienced teams of technicians. We are confident that with the handing over of the contract to Emirates Transport, we will be able to focus on our resources to

improve our core offering by enhancing operational efficiencies and controlling costs.”

The auto services division of Emirates Transport operates 52 workshops and employees 1,850 mechanics and technicians. The division currently offers maintenance services to 22,000 vehicles belonging to more than 150 public and private sector entities, as well as Emirates Transport’s own sizable fleet.”

Imdaad has gained a strong reputation in the region as an adopter and implementer of the latest FM technologies and practices. The company has eco-friendly equipment and prioritizes sustainability across all its operations. It also conducts recycling training for its clients, corporate partners and staff, in addition to providing free recycling bins in certain projects where it handles waste management and collection services.

3,000

NEWS

The number of current member companies for Etihad Cargo’s loyalty program, CargoConnect

DB Schenker Logistics Etihad Cargo, WCA wind Ecology Award launch new service

DB Schenker Logistics has been awarded winner of the customer prize for outstanding environmental engagement on the occasion of the 4th Lufthansa Climate Care Day in Frankfurt Main.

The award was granted especially for the introduction of ‘Carbon Reduction Agreements’ into the business relation between a logistics service provider and carriers thereby linking business volume growth to a carbon reduction in a medium-term (2014 through to 2020). The agreements also reflect the successive integration of sustainability KPIs into the business relation with transport providers.

“This award reflects and supports our strategy to become eco pioneer in the transport industry”, remarked Dr. KarlFriedrich Rausch, Board Member for Transportation and Logistics of the DB Mobility Logistics AG and CEO, Schenker AG. “It confirms our approach to also include our third-party service providers, thereby contributing mutually to a longterm and carbon neutral business development,” he added further.

Etihad Cargo has launched a new service in conjunction with the World Cargo Alliance (WCA), the world’s largest network of independent freight forwarders and Worldwide Information Network (WIN), the IT provider.

The platform, which is the first of its kind in the cargo industry, has been launched to provide special rates for selected origins and destinations on the Etihad Cargo network. It applies to WCA members who are also members of Etihad Cargo’s loyalty program, CargoConnect, and use the WIN eplatform, for all booking and air waybill transactions. In one location, the platform will offer instant pricing for all online Etihad origins and destinations, e-booking, e-air waybill plus track and trace.

David Kerr, Vice President of Etihad Cargo, remarked: “By continuing to develop our partnership with the WCA network and achieve firsts in the industry, we can continue to meet the needs of our growing customer base.”

Membership of CargoConnect is free and gives members the benefit of exclusive pricing as a WCA member, while allowing users to earn Etihad Guest Miles for all cargo shipped on Etihad Airways.

Miles can be used to redeem against flights, upgrades or thousands of products from the airline’s online Rewards Shop.

CargoConnect rewards companies for every booking made.

Built on a similar platform to the award-winning Etihad Guest frequent flyer program, CargoConnect is targeted at the SME segment of the global cargo business.

WCA-registered CargoConnect members can also use their miles to book their flights or upgrades to Abu Dhabi for the WCA First and Worldwide Conference being held between 10 to 16 March 2016.

WCA recently announced its annual global conference would be held in the capital of the UAE, where it is expected to attract around 2,500 freight forwarder delegates.

Jebel Ali Port is ranked amongst the Top 10 container ports worldwide

www.dpworld.ae

Logistics News ME | July 2015 | 9

NEWS

70

The number of countries served by UPS in the Indian Subcontinent, Middle East & Africa (ISMEA) region

MICCO to invest AED 35 million in KIZAD Abu Dhabi Ports has signed a standard Musataha agreement (SMA) with Al Mazroui International Cargo Company (MICCO) to establish a new Logistics Business Centre at Khalifa Industrial Zone Abu Dhabi (KIZAD). The state-of-the-art facility will cater to MICCO’s temperature controlled storage facilities, bulk storage through open yards, distribution services, and a service centre for their trucking fleet.

MICCO’s new Centre will be built in three phases. The first phase will see MICCO, a leading freight contracting company in the UAE and one of the oldest logistics service providers in Abu Dhabi, invest an initial AED 35 million (US $9.54) for the first phase, with further investments anticipated based on the future developments of phase two and three. Their new facility, requiring a plot size of 30,000 square metres, is expected to be ready by Q4 2016 and fully operational by January 2017.

“Abu Dhabi Ports has enjoyed a long-standing business partnership with MICCO – going back to the start of operations at Zayed Port,” observed Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports.

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“This new agreement marks our continued efforts in supporting their business.

Kizad, is the ideal location for expanding logistics network and assisting MICCO expand its reach and develop business growth opportunities,” he continued.

Captain Simreen, Managing Director at MICCO, noted that that through this SMA, MICCO will be able to further contribute to strengthening Abu Dhabi’s export potential and in establishing even stronger logistics provisions to the GCC market.

The SMA builds on an already strong relationship between Abu Dhabi Ports and MICCO. In April 2014, the companies signed a MoU that guaranteed stability in the rate structure and through which MICCO provided road freight services for container cargo pick-up and delivery to Khalifa Port to and from any location in the city of Abu Dhabi, including Musaffah. Abu Dhabi Ports supported MICCO’s comprehensive freight services by providing a dedicated coordination desk and parking area for the various MICCO trucks, as well as fast track processing at its ports.

Catch our interview with Khalifa Port in the next issue

UPS unveils new sorting facility in Abu Dhabi

Top international logistics services provider UPS recently announced the opening of a new package sorting facility with warehousing and contract logistics capabilities in the UAE capital Abu Dhabi. The new facility will triple the existing sorting capacity, providing faster transit times for customers in Abu Dhabi and facilitating UPS ExpressTM shipments to major Middle East destinations and India by the end of the next business day.

“This investment is part of UPS’s long-term commitment to the UAE and our customers in the region, helping them to connect to global markets even faster,” commented Rachid Fergati, UPS Country Manager for the UAE. UPS has been present in the Middle East since 1988 with its regional headquarters in the UAE. The company’s regional network in the Middle East, the African continent and the Indian subcontinent comprises more than 300 operating facilities across 70 countries. A total of 16 weekly UPS flights from Dubai International Airport connect customers in the region to the EU, the US and Asia.

This expansion is the latest investment in the growing UPS presence in the region. In 2014, UPS relocated its contract logistics operations to a multi-purpose facility in the Jebel Ali Free Zone in Dubai doubling its warehousing capacity. In the same year the UPS Worldwide Express Freight™ service was introduced to customers for urgent, time-sensitive and high-value international heavyweight shipments consigned to and from the UAE. This is in addition to UPS’s full portfolio of express shipping services, customs brokerage service and state-of-the-art tracking and monitoring technology.

NEWS

Khorfakkan Container ADPMTC collects two more accreditations Terminal receives largest vessel to date

Gulftainer recently welcomed its largest ever vessel at the Khorfakkan Container Terminal (KCT) in the UAE. The ‘CMA CGM Kerguelen’, named after 18th century French navigator, Yves Joseph de Kerguelen de Trémarec, made its maiden call at the terminal.

The ‘CMA CGM Kerguelen’ is the newest and largest vessel in the CMA CGM’s fleet with an overall length (LOA) of 398 metres, a width of 54 metres and a total capacity of 17,722 TEUs. Daniel Wright, Gulftainer’s Terminal Manager at KCT commented: “Receiving the ‘CMA CGM Kerguelen’ represents another milestone for Gulftainer and Khorfakkan Container Terminal, as it is the largest vessel we have worked at the facility.

This new milestone adds to the benchmarks already achieved this year at the Terminal where we recently set a new record for the highest number of containers discharged and loaded on a single vessel call when the ‘CMA CGM Jules Verne’ worked a total of 19,561 TEUs in a record time. ” The ‘CMA CGM Kerguelen’ is longer than four football pitches, or five-and-a-half A380 Airbus aircraft and its length also surpasses the Empire State Building’s height, which stands at 381 metres. On her maiden call to KCT, the vessel discharged and loaded over 7,700 containers and departed the Terminal ahead of schedule.

Gulftainer’s current portfolio covers UAE operations in Khorfakkan Port and Port Khalid in Sharjah as well as activities at Umm Qasr in Iraq, Recife in Brazil, Jeddah and Jubail in Saudi Arabia and Tripoli Port in Lebanon, which will commence operations in September 2015.

Abu Dhabi Ports Maritime Training Centre (ADPMTC) has been accredited by the UAE’s Federal Transport Authority (FTA) - Land and Marine, for its delivery of International Maritime Organisation (IMO) Model Courses, all of which meet the requirements of the latest edition of Standards of Training, Certification and Watchkeeping for Seafarers (STCW) Code.

The courses which have been accredited are: the IMO Model Course 1.07 for Radar Navigation, Radar Plotting and Use of ARPA, the IMO Model Course 1.08 for Radar, ARPA, Bridge Teamwork and Search and Rescue and the IMO Model Course 1.27 for Operational use of Electronic Chart Display and Information Systems (ECDIS).

The announcement comes after the FTA conducted its annual evaluation and review of the Training Centre training programmes, the training staff, the curriculum and the centre’s future plans and strategic direction, to ensure that all of the criteria are in line with international standards. All of the criteria were found to be meeting and exceeding the requirements and the FTA awarded its accreditation.

In addition, the UK’s Maritime and Coastguard Agency (MCA) has accredited the ECDIS and ARPA (Automatic Radar Plotting Aid) (operational level) courses and the associated certificates offered by the Abu Dhabi Ports Maritime Training Centre. The UK MCA accreditation makes Abu Dhabi Ports Maritime Training Centre the first training center in the region offering these courses with worldwide recognition.

Sultan Al Jaberi, Vice President HSE, Regulations and Security at Abu Dhabi Ports said: “Our training centre is delivering the highest quality maritime training of anywhere in the region, a fact that has been officially recognised by the FTA and the UK’s MCA. Hessa Al Malek, Marine Transport Executive Director, FTA commented: ‘The FTA works to ensure that the UAE is a leader par excellence in transportation”.

Voted as “Best Seaport in the Middle East” for 20 consecutive years

www.dpworld.ae

Logistics News ME | July 2015 | 11

COVER STORY

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COVER STORY

GATHERING MOMENTUM

The growth at Mohebi Logistics during the short period since its formation in 2008 has been meteoric growing from a small operation to the size and scale it is today. It has the unique and important distinction of being the first, entirely-family-owned, indigenous, UAE business in the logistics arena.

D

riving gingerly into Dubai’s JAFZA’s sprawling South Zone off the bustling Sheikh Mohammed Bin Zayed (MBZ) Highway on a hot blistering afternoon, I was drawn into a world of desert mirages, optical illusions, hot winds and general lethargy. Following the GPS in the car into the perfunctory roundabouts and seemingly endless stretches of roads past industrial structures, business complexes and swiftly-moving traffic, it appeared a regular drive, like the many times I made these sorties into this vast industrial landscape in the past.

Then, as if to shake you off from the midsummer, high-noon complacency suddenly emerges an expansive edifice as far as the eyes can see. Yes, finally providing relief to what seemed like aimless and interminable driving, Mohebi Logistics is in clear sight.

The extensive and modern twin-building complex stands out and looms large in contrast to the stark backdrop of the bare surroundings. The capacious structure housing the offices and vast warehouses is testimony to the farsightedness and sagacity of founder-CEO Mohammed Mohebi who conceived the company only seven years ago.

The growth at Mohebi Logistics during this period has been meteoric; from a small operation to the size and scale it is today. It has the unique and important distinction of being the first, pioneering, ground-breaking, entirely-family-owned, indigenous, UAE business in the logistics arena. No foreign tie-ups here, no alliances, partnerships—just the foresight of a local company and visionary who decided to go-it alone and develop itself in the hitherto uncharted logistics and supply chain territory.

With all pre-approved entry formalities firmly in place, I am finally ushered into large well-appointed spacious offices. Here, I am enthiusisatically greeted by the towering, articulate, dynamic Mohammed Mohebi who also dons the dual hat as CEO of holding company, Zainal Mohebi Holdings, ranked among the top 100 companies in Dubai and a case-study in good entrepreneurships and professionalism.

The eloquent and expressive supremo rapidly settles into chronicling the exponential growth of the company from the grassroots upwards despite the odds, its genesis, his steely resolve and single-minded devotion to succeed in the face of initial opposition and nagging naysayers, his accomplishments to date and now his vision for the future. Mohammed Mohebi, the third generation scion of Haji Zainal Mohebi, the founding father of the now 80year old eponymous holding company of

Mohebi Logistics Mohebi Logistics is a vertically integrated supply chain management specialist based in the UAE that delivers regional multi-temperature distribution solutions to major international brands. The company specializes in demand estimation, forecasting, sourcing, inventory and freight management, and serves some of the world›s largest FMCG organizations, quick-service restaurants and food service companies.

which Mohebi Logistics is part, was in his element as he fielded questions in his first, exclusive interview with Logistics News Middle East.

Tell us about your provenance and beginnings.

As a pioneering, Emirati logistics and supply chain company to what do you attribute the success of Mohebi Logistics?

I put it down to passion, determination and hard work. Success is the outcome of these prime attributes and is inevitable when all of these ingredients are in place. I am very driven and come from a well-regarded and successful merchant family with longestablished roots in Dubai’s business heritage.

This is not to say that it has been roses all the way. Every generation of this family, as any business family, has had to grapple with many challenges, particularly my father’s generation, which constituted the second tier of the business. However, we have also been tremendously blessed with the creation of this country, the United Arab Emirates, under the prudent leadership of our founding fathers, the Government and the discovery of oil and energy resources that have been harnessed wisely in the development of this country.

New commercial and infrastructure opportunities opened up for a whole generation of entrepreneurs who were able to capitalise on the prospects and thereby propel the speedy economic growth of this country.

As I looked at alternatives to diversify and grow the business, I decided that we should adhere to business sectors where we had the necessary initial skills, expertise and experience and not go too far off the mark.

Logistics News ME | July 2015 | 13

COVER STORY

Our business had its origins in food procurement and supplies and that was where our brand equity laid. So building upon this goodwill and an area we were well-known in, I chose to stray not too far off this mark and to stick to the B2B and B2C FMCG segment.

As one being born into this family I believed I had the responsibility and accountability to grow the business and I felt this weight upon my shoulders. With this perspective, I unilaterally ventured into a completely new business arena. I foresaw great potential in the logistics and supply chain space. In doing this I also went against the conventional grain. The logistics business is both capital and labour-intensive and my venture was essentially a tough sell for me even to my own family. However, it was my measured decision and I wanted to imprint my signature and DNA into this totally new venture.

I was able to garner the necessary investments, put together a strong and committed team and get the company functional and operational. It always begins with a vision, a plan, determination and commitment. Success is then the byproduct.

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Give us a sense of the size and scale of your current logistics operations in South JAFZA? As a local company I was convinced that the way forward was first and foremost local capabilities. In all mature markets there must be local companies who are enablers

“Our employee strength has also increased proportionately. From 350 employees in 2008 we have grown to over 800 employees today and many in the original team are still with us. Our DWC operations, when fully functional, will also further swell our employee numbers to an additional 1,000 at the very least.�

and can provide the necessary local expertise and capabilities. So early on we saw this need and space and occupied it.

Today, we are a mega operation. As a vertically integrated supply chain management specialist the scope of our activities go beyond storage and transportation for our growing clientele base. We go the extra mile providing expertise in product forecasting; sourcing; purchasing and inventory management and all aspects of freight management.

At the present time we are rapidly expanding our capabilities and enlarging our infrastructure base at our current Jebel Ali location. We have hiked the number of pallet positions from 33,000 in 2008 to over 78,000 today. In the new DWC site, which when completed will serve as our new corporate headquarters, we endeavour to acquire a further 150,000 pallet positions.

Our employee strength has also increased proportionately. From 350 employees in 2008 we have grown to over 800 employees today and many in the original team are still with us. Our DWC operations, when fully functional, will also further swell our employee numbers to an additional 1,000 at the very least.

Why did you choose to move to the Logistics District at Dubai World Central?

COVER STORY

Our move to DWC is more than just a move to a new facility. It is an embodiment and manifestation of not only our ambitious growth path and the need to expand but our faith and confidence in the progress of our business and in the economic advancement of our country. Our financial commitment to the expansion will top US $800 million as it is a testament and measure of how far we are willing and able to go with our ambitions and commitment to our business.

I have hand-picked our design consultants for DWC to create a state-of-the-art facility reflecting our evolution over time and representong the finest technology, facilities, and infrastructure with gleaming offices and modern-day amenities and service offerings.

What will happen to your current facility?

Our facility here in JAFZA will stand and both complement and supplement our DWC and overseas operations.

How would you characterise your relationship with Dubai World Central?

We have a fantastic partnership with DWC. They are highly professional, highly cooperative and understand client needs. They are willing to listen and pay attention to

what you are saying. They have a positive mind-set and genuinely want to help and assist in any and every way they can.

Do you also plan full-fledged operations at Khalifa Port, Abu Dhabi?

Yes, we are in the process of securing 100,000 sq. m. site in the new Khalifa Port in Taweelah, half way between Abu Dhabi and Dubai.

Talk to us briefly about Mohebi Logistics’ overseas operations?

We are rapidly spreading overseas. A new tranche of investment and funding will see our expansion into the Kingdom of Saudi Arabia and India in addition to Qatar, Oman and South Africa where we are already present. We will also be shortly initiating a massive master plan for our debut in Abu Dhabi’s KIZAD and Port Khalifa.

Mohebi Logistics’ expertise, experience and capabilities are also harnessed by external clients outside of the Group.

What headway has been made in this sector?

Many external multi-national manufacturers and retailers have become

our long-standing clients. These include such heavyweights as Nestle, MacDonald’s, ADNH Compass and Marks & Spencer to name a few. Mohebi Logistics provides regional distribution solutions to major international brands and handles several thousand SKUs each month.

What are the challenges confronting Mohebi Logistics in the region for the short and long term futures?

I predict that with time competition will get fierce. Dubai and the UAE is not a market for the faint-hearted or those who respond with knee jerk reactions. Personally I welcome competition because it is the only thing that keeps you vigilant and on your toes; it will set new standards and bring out the best in us. What we learn from local competition, we can also replicate when we go out into overseas markets.

The other challenge is to attract good and proficient talent. There is a dearth of good talent and we need to draw of our young people passing out of the portals of our universities and business schools into the logistics and supply chain pool.

Zainal Mohebi Holdings is a 100 % privately-held, family-owned business. Will

Logistics News ME | July 2015 | 15

COVER STORY

it stay that way or do you anticipate going public in the foreseeable future?

Yes, family ownership of our business is sacrosanct. It will stay that way. I routinely and regularly get offers for partnership and I have not entertained any and rejected every single one of them. The reason is not just in the the identity of the Group being compromised or diluted but in the manner and style of our management. I am not willing to give up the speed of making decisions and eliminating interference and linear management which we currently are.

The possibility of going public or issuing an IPO for now are extremely remote.

As CEO and Group head-honcho, what is your long-term vision for Mohebi Logistics? Where do you hope to take the company hereon?

I am committed to my company, its corporate objectives, our employees, our clients, and other stakeholders. We will continue at this current pace of growth. My forecast is that within five years from now we will be a pan-GCC operation with enhanced operations in South Africa and other countries on the African continent as well as in India. We are also looking at Iraq, the Levant and also countries in North Africa such as Morocco for example.

Furthermore, as a Group we will continue to diversify and have multi-faceted interests and operations in different industry verticals. Within the FMCG arena our aim is to become vertically integrated— translated this means moving aggressively into the retail and supermarket business. In June we opened our fourth and fifth supermarkets. The intention is to have 52 supermarkets across the UAE over the next five years. We are also contemplating a second-tier, parallel supermarket chain to target smaller precincts and localities.

We will also be moving into manufacturing and processing and have our own brand labels. So essentially we will cover the entire chain from manufacturing to branding to retailing. One challenge we face in our expansion strategy is to find good locations to house our supermarkets. It is becoming increasingly difficult to source good locations. So we may consider the acquisition route—where we procure an existing chain and rebrand and manage it ourselves. So all options are now on the table.

We will also continue to pursue our ongoing interests in the real estate sectors.

We will not be twinning or partnering with external companies but will go it alone.

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COVER STORY

Mohebi Logistics announces US $150M sophisticated facility in DWC Building on its successful and sustained track record in FMCG logistics through local know-how, strong market reputation and extensive network, the family-owned Emirati business is consolidating its entire Group activities at DWC. Dubai-based Mohebi Logistics, one of the largest vertically-integrated supply chain management companies in the Middle East, has broken ground on its dynamic new facility at Dubai World Central (DWC).

In a groundbreaking ceremony held at the company’s new site in the Logistics District at DWC, Mohebi Logistics, a subsidiary of Mohebi Investments and an affiliate of Zainal Mohebi Holdings, revealed detailed plans for the AED 550 million (US$150 million) centre scheduled for completion by the end of 2016.

The new facility will be spread over 206,000 square meters of land, and will encompass the Zainal Mohebi Holdings corporate office and storage capacity of 180,000 pallet positions, more than doubling the company’s existing storage and logistics capabilities, to provide enhanced and customised services to its long-standing regional and global clientele.

Commenting on the historic event, Mohammed Mohebi, CEO of Mohebi Logistics and Zainal Mohebi Holdings, remarked: “To stay innovative, you must be willing to constantly re-evaluate how well you work with your business partners. We are proud and excited to become a strategic partner of Dubai World Central and a key contributor to Dubai’s continued economic growth. It is important that Emirati talent and know-how offered by homegrown companies, is developed to support our leadership’s vision of creating a knowledgebased economy. Dubai World Central will play a critical role in showcasing both Emirati talent and corporate capabilities, which in my opinion is crucial in serving our national interests.”

Khalifa Al Zaffin, Executive Chairman, Dubai Aviation City Corporation, stated: “We are proud to welcome to the DWC family one of the oldest and most exemplary Emirati family business organisations in the UAE – Zainal Mohebi Holdings. The company reflects our nation’s ethos of business excellence and progressive culture.

We are confident that its corporate and operational growth will not only flourish

(L to R) Mohammed Mohebi, CEO of Mohebi Logistics and Zainal Mohebi Holdings, Khalifa Al Zaffin, Executive Chairman, Dubai Aviation City Corporation, Rashed Bu Qara’a, Chief Operating Officer at Dubai Aviation City Corporation, Mohsen Ahmad, Vice President, Logistics District at DWC.

under the DWC ecosystem, but shall also contribute to it.”

Mohebi Logistics’ development forms part of an overall AED 1 billion (US $300 million) investment that Mohebi Investments has earmarked to establish Mohebi Logistics as a major regional player. In addition,

Zainal Mohebi Holdings will consolidate its FMCG operations by also re-locating to Dubai World Central. The objective is to achieve a lean and efficient retail distribution business that can take full advantage of DWC’s infrastructure, multi-modal transport accessibility, dedicated services and facilities.

Logistics News ME | July 2015 | 17

CASE STUDY

May 2015 passenger, cargo numbers soar at Abu Dhabi Airport In terms of passenger numbers, India topped the list in May with over 305,000 passengers, up by 58.6% from the same period last year.

A

bu Dhabi International Airport recently released figures today for the month of May 2015 that show overall passenger traffic was up by 14.9% for the month compared to May 2014 with 1,877,440 passengers passing through the airport, made possible by nearly 15,000 aircraft movements.

The published figures included the number of passengers to and from Italy, which have grown by 166.5% compared to May 2014 to over 50,000 passengers, as Alitalia’s newly opened routes to Milan and Venice started to take effect. In addition, passengers flying to and from the United States also registered similar increase with more than 106,000 passengers last month, translating into 49% growth in traffic compared with May 2014.

Cargo traffic also showed healthy growth with 9.8% increase in overall tonnage to 73,476 compared to 66,944 in May last year.

Eng. Ahmad Al Haddabi, Chief Operations Officer at Abu Dhabi Airports, commented, “May was an excellent month for us, and we continue to see strong growth across all key sectors with both passenger and cargo facilities running smoothly. With this trend forecast to continue, we remain committed to maintaining and improving levels of customer service, in order to ensure an outstanding experience for passengers at Abu Dhabi International Airport.�

In May 2015, the top five destinations from Abu Dhabi International Airport were Mumbai, Manila, London Heathrow, Doha and Bangkok.

The top five destinations accounted for 16% of all traffic.

Traffic

May

Year to date

2015

2014

% Variance

2015

2014

% Variance

Passengers (000)

1,877,440

1,633,700

14.9%

9,263,497

7,814,193

18.5%

Total Aircraft Movements

14,725

12,931

13.9%

70,521

61,195

15.2%

Cargo (tonnes)

73,476

66,944

9.8%

341,333

310,347

10.0%

18 | Logistics News ME | July 2015

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BION COMMERCIAL VEHICLES

Bion’s three new tough Tipper-Trailers demonstrate trail-blazing attributes Bion Industrials’ indigenously manufactured three new next-generation B250, B340 and B480 tipper-trailers boast optimal payload, functional efficiency, advanced safety features and durable materials.

T

he UAE-based Bion Industrial, one of the Middle East’s leading manufacturers of heavy transport equipment has further increased both the efficiency and safety of its commercial vehicles product offerings with the recent VIP international launch ceremony of three new robust, tipper trailers.

Leading Emirati, Saudi, Omani, Qatari and Bahraini companies gathered recently at the international launch event in Dubai’s expansive Desert Palm Retreat.

The three new next-generation B250 (capacity 25 cubic m.), B340 (capacity 34 cubic m.) and B480 (capacity 48 cubic m.) tippertrailers boast optimal payload, functional efficiency, advanced safety features and dura20 | Logistics News ME | July 2015

ble materials. They have been designed, developed and built in the Emirates.

The new B480, B340 and B250 tippers are built to the highest standards and are perfect for transporting bulk abrasive materials across the Middle East and beyond. Unique features include a Hardox steel body, which is known for low maintenance and its low tare weight, a bigger chassis for less detection and safer tipping, heavy duty disc rims and a five-stage tipping cylinder and LED lighting for increased visibility.

“With new cutting-edge capabilities resulting in a wide range of benefits, the new tipper trailers are equipped to serve a wide variety of companies, from construction and agriculture to heavy haulage,” remarked

Noas Al Rawi, CEO of Bion Group.

“There are countless infrastructure developments taking place in the region providing significant demand for these types of high powered, high quality tippers. We at Bion want to maximise our operations off the back of these major developments; we want to offer total peace of mind to our customers and facilitate their growth and we have an aftersales support system in place to ensure this happens,” added Al Rawi.

Designed and created at the company’s hub in Dubai Industrial City, Bion Industrial›s premises house state-of-the-art welding and painting facilities and CNC-cutting and pressing machines. The chassis for platform trailers, box trailers, tipper vehicles

BION COMMERCIAL VEHICLES

Bion Industrial joins SSAB – Hardox In My Body Programme

Dubai-based, heavy transport equipment manufacturer, Bion Industrial, has joined the prestigious Hardox® In My Body Programme (HIMB), giving customers the ultimate quality stamp, by guaranteeing that all key wear parts of their tipper trailers are manufactured using the original HARDOX steel from SSAB—Sweden, a global leader in value added, high strength steel.

“Tipper trailers traditionally have a very rough and tough life and longevity is a key issue for the fleet owner and operators. With ‘Hardox in my Body’, Bion Industrial is extending the service life of its tippers and further maintaining a lighter structure with optimal payload. This ensures customers the ultimate quality guarantee,” remarked Noas Al Rawi, CEO, Bion Group.

“We are pleased to welcome Bion Industrial to our Hardox in my Body family,” affirmed Pedro Martin, Sales Director Turkey, MENA, Sub-Sahara of SSAB. Being able to carry the ‘Hardox In My Body’ logo is a sign of good quality with additional benefit of extended life due to the unique combination of hardness and toughness asserted Martin.

All Bion tipper trailers will come along with the HIMB logo thus enhancing the seal of quality which the brand has become renowned for.

and demountable systems are produced and assembled on location by a team of highly skilled technicians and project managers.

“The launch of these tippers demonstrates that the UAE is capable of producing products that can meet the highest international standards, and our quality control methods are testament to this,” added Al Rawi.

Bion Industrial prides itself on using best materials and internationally recognised production processes. Each trailer comes pre-fitted with a range of operational and safety features unrivalled in the market and is made to measure by a team of Dubai-based engineers.

The three new trailers all feature a seamless longitudinal structure for longer life, an

aerodynamic design for reduced air resistance and better performance and fuel efficiency and a rounded body shape for higher payload. They also have a low centre of gravity for smoother and safer off-loading and driving, and a curved body for safe unloading.

The tippers come with ABS, Tilt Alert, a twin line air brake system, heavy duty disc rims for tubeless tires, a plastic wheel choke, tool box and water tank and fire extinguisher holder as standard. All of Bion’s electrical and lighting systems are compliant with current EU standards and come with five year maintenance free led lights.

The lavish, high-profile, international launch event was attended to by over 150

VIP guests and luminaries that included high ranking officials from some of the region’s key infrastructure builders and major construction companies in the UAE, Qatar, Oman Saudi Arabia and Bahrain.

Logistics News Middle East spoke exclusively to Noas Al Rawi, the youthful, focussed, CEO of the Bion Group and serial entrepreneur.

On the new tipper trailers launched by Bion Industrial: Our newest trilogy of tipper trailers are best be characterised as the perfect blend of unity and innovative engineering. They represent the best and the latest in technology and service we offer our clients.

Logistics News ME | July 2015 | 21

BION COMMERCIAL VEHICLES

On the ‘Hardox In My Body’ certified, SSABSweden trademark: With ‘Hardox in my Body’, Bion Industrial provides longevity to its tippers and the technology maintains a lighter structure that is durable and provides a peak payload.

This is a great benefit to our customers and clearly we are a driving force on the roads.

On Tarwada Cargo Transport (TCT), which has moved swiftly along to become one among the top three companies in the road transportation sector in just three years of its inception: Tarwada Cargo Transport is laser-focussed on its commitment to provide our customers the finest transportation

Noas Al Rawi Biography Noas Al Rawi is the Chief Executive Officer and founder of Tarwada Cargo Transport (TCT), a company he formed at just 26 years of age. Noas also holds the position as Chief Executive Officer of Bion Group which incorporates six different transport solution companies.

Al Rawi was born into a family with a 100-year history of trading, and after completing a management degree in information technology at Al Mansour University in Iraq, he established Senna Money Exchange in 2000 as Managing Director.

His career continued to gather pace when he launched the Sony Ericsson Distribution team in his native Bagdad, assuming the role of Managing Director in 2004.

After moving to the UAE Al Rawi then founded TCT, managing all of the group’s operations. In just 3 years TCT has become one of the top three transport companies in the UAE and a recognised leader in transportation solutions.

TCT currently has a multi-million dirham turnover and currently employs a workforce of over 400 employees. The company predicts that by 2020, turnover will be close to 1 billion AED (US $ 272.28) across all businesses under the TCT umbrella.

22 | Logistics News ME | July 2015

solutions. We have the investments, the infrastructure, the assets, equipment, expertise, experience and the capabilities. It is a testament to our dedication and providing the finest services to our clientele.

On the range of services does TCT offer its clients: TCT provides exhaustive, comprehensive and a full range of customised services in land transport to our customers through our extensive road network and vehicles comprising refrigerated, flat-bed, low-bed and curtain-sided trucks and skilled, experienced staff. Our trucks are only Mercedes and Volvo and 80% of our fleet is less than three years old. We also offer insurance and use modern telematics and road transport management techniques to monitor movements.

On the outlook for TCT in 2015 and how that compares and contrasts with 2014 and 2013: The outlook for 2015 looks good and we are confident we will close the year strong. Our performance gets better with each progressive year.

On the opportunities and challenges confronting TCT: Opportunities abound and we are constantly looking for ways and means to expand our operations. Like any business we also have challenges. These are not unsurmountable

BION COMMERCIAL VEHICLES

challenges and we welcome these as they define the scope and quality of our work.

On the expansion plans for TCT in the UAE and the wider GCC: Yes, expansion is our goal and indeed we are growing. As a transport company we are keen to expand and have representations across the GCC and indeed the Middle East. We are readying for the long haul.

On plans to diversify further: We are a major conglomerate with varied and diverse interests and keep our ear to the ground. We are always exploring new avenues and scouting for new possibilities.

When we find opportunities, we will pursue these as they come along.

On the advent of Etihad Rail and the looming prominence given to the development of the rail network across the GCC: We welcome Etihad Rail and firmly believe

“Tarwada Cargo Transport is laser-focussed on its commitment to provide our customers the finest transportation solutions.

We have the investments, the infrastructure, the assets, equipment, expertise, experience and the capabilities. It is a testament to our dedication and providing the finest services to our clientele.�

that the rail network will enhance and empower the land transport network not work against it. There will always be need for road freight and other feeder services.

On the long tail backs at the UAE-Saudi Arabia border: This subject is in the government realm and it is up to the Governments and related authorities and regulators in the UAE and the Kingdom of Saudi Arabia to resolve issues and facilitate streamlined movements of goods and merchandise.

On the advice would you give budding entrepreneurs as a well-established, serial entrepreneur with strong family trading credentials: The entrepreneurial spirit still burns bright in me. My firm advice to budding entrepreneurs is to do due-diligence and be steadfast and stay the course. Business is not for quitters and even in the face of adversity, one should stay resolute and run the race one has set for themself.

Logistics News ME | July 2015 | 23

RETAIL LOGISTICS

Géant on the go: Taking giant strides in the region In May 2001 Géant opened its first store in Bahrain & opened Géant Hypermarket Dubai on 23 March 2005. With the Group´s strength in local retailing and knowledge of the region and Groupe Casino´s expertise in Hypermarket operations, Géant is a prime and outstanding example of the best local adaptation of International standards in retailing.

T

he ‘Géant Hypermarket’ brand is born of the partnership between privately held Future Commerce (Fucom), one of UAE›s leading and fastest growing retailers and longestablished Groupe Casino, one of France’s leading retailers and the 5th largest retailer in the world, which operates more than 10,000 multi-format stores in nine countries.

Groupe Casino and Fucom Group introduced the famed ‘Géant Hypermarket’ Brand to the Middle East.

The Hypermarket´s unique ‘It’s Géant and it’s for you’ marketing strategy and aggressive theme-based promotional campaigns has helped it to pitch itself across all customer segments of GCC›s multi-cultural consumers.

24 | Logistics News ME | July 2015

Uniquely designed on the pattern of the finest outlets of Europe and covering approximately 13000 square meters, with average 40 customer checkout counters and about 350+ staff members.

The average Hypermarket carries a minimum of an astonishing over 65,000 product lines which include food, grocery, perishables, apparel, house ware, homeappliances, white and household goods, Tupperware, consumer electronics, beauty care and virtually every consumer segment.

Mark Anthony Lack, Géant COO, responded to an exclusive and extensive questionnaire by Logistics News Middle East on supermarket retailing, merchandising, logistics and supply chain.

Put into perspective the relationship between the quartet—Fucom, Groupe Casino, Easy Living and Géant?

The relationship between Fucom and Groupe Casino is one of a strong franchise partnership. Groupe Casino provides the brand knowledge, systems and support whereas Fucom delivers local knowledge and expertise.

Right now we are going through a process of solidifying and consolidating the banners that we trade under across the GCC (Géant, GulfMart, Le Marche, Last Chance) and formalising the formats (Hypermarket, Supermarket, Neighborhood, Convenience) as well as developing the e-commerce channel. This entails a lot of work in our

RETAIL LOGISTICS

commercial departments to ensure we have the correct products, in the correct banner and format for the customer we are trying to serve.

Very briefly, trace the history and time-line of Géant in the UAE and the GCC? We opened our first Hypermarket on 23rd March 2005 in Ibn Battuta Mall at a time when there really wasn’t much else in the area. This was quickly followed by a Supermarket a few months later in Arabian Ranches.

What then followed was a number of openings for Supermarkets and our first foray in Abu Dhabi in March 2012. Our second Hypermarket opened in Al Ain in September 2013 and our e-commerce offering came alive on 8th April 2013. More supermarkets followed in quick succession during 2014 prior to our third Hypermarket at the prestigious Yas Mall project.

2015 marks the landmark 10th anniversary of Géant operations in the UAE. What are your thoughts on this milestone occasion?

A decade of growth and offering customers a shopping experience with a difference is just the start of our time in the UAE and the GCC. We have an excellent platform for further growth utilising our depth of knowledge across the three countries we currently operate in as Fucom and the ability to tap into our sister companies’ knowledge

Mark Anthony Lack Mark Anthony Lack is the recently appointed Chief Operating Officer of Fucom, the master franchise owner of the Géant Hypermarket and Géant Easy brands across the GCC and operator of the GulfMart supermarkets brand, Le Marche supermarkets, Last Chance supermarkets and The Bahrain Mall.

A retail veteran of 30 years and having started on the store floor, Lack brings with him wide and deep knowledge of the retail

industry gained whilst working in a variety of formats from discounters, wholesalers, neighborhood stores, supermarkets, hypermarkets and FMCG distribution in 19 different countries around the world including an extensive period of time spent in the GCC. Experienced at each stage in the business cycle from pure start up to accelerated growth, realignment and turnaround in both mature and developing markets Mark has always been able to quickly identify the key challenges in an organization that require the most attention and then give back the greatest return for all stakeholders in the quickest time possible.

With an absolute passion for training and people development alongside an obsession for high standards and detail within the operation Mark’s goal has always been to get the best possible out of the team to ensure that the customers experience is a memorable one they want to repeat time and time again.

An unswerving belief that retail can be a simple business, Mark›s aim is to simplify processes and procedures in store operations to ensure the store teams can spend more time interacting with customers and truly deliver on the promise of the organisation›s customer service ethos.

Logistics News ME | July 2015 | 25

RETAIL LOGISTICS

of other countries in the region to give us a head start as soon as we are ready to move to a 4th, 5th and more locations.

A lot of the team we have in the organisation has literally grown up with it so the depth and breadth of knowledge within the team can now be leveraged for growth in more locations than we are currently operating in.

How do you classify your operations in scale between the hypermarkets and Easy Supermarkets?

Hypermarkets and Supermarkets are different formats of the same banner so our aim is to offer our customers the same shopping experience with a difference in each of the formats. The scale perspective is usually about volume (customer numbers, average baskets, shopping frequency, basket composition, number of products offered).

However, with the back end systems we have, we are able to take a global view on which products are selected for which store (banner or format) to ensure we are offering customers the best choice that is needed for a particular shopping occasion.

Hypermarkets are big beasts with lots of

26 | Logistics News ME | July 2015

Hypermarkets and Supermarkets are different formats of the same banner so our aim is to offer our customers the same shopping experience with a difference in each of the formats. assortment, lots of people and large floor areas to fill so also lots of stock. It takes particularly good management to keep the perspective of the team firmly on serving the customers’ needs and over the next few years more and more training will be given to the teams, focusing on product knowledge, to enable them to serve customers better.

What is the scale and size of your operations in the GCC? Right now we are in three countries with 48 stores and around 1,200,000 square feet of

selling space looked after by roughly 3,600 colleagues serving approximately 32,000,000 customers per annum.

What are the opportunities and challenges for Géant in the region going forward?

The opportunities are huge, still in the three countries we are in which is why the board has allocated AED 1bn (US $272.48) for expansion over the next three years, in addition to this there are a number of refurbishment and upgrades we will be performing and I have been asked to look outside of the three countries for some new pastures for us to give even more customers a shopping experience with a difference.

Talk to us about your expansion plans for Géant in the region? Where do you foresee good growth potential?

Already we are opening by the end of this year in DragonMart2 (Hypermarket), Fujairah (Hypermarket), Remraam (Neighborhood) in Dubailand and BDF— Bahrain Defence Forces (Bahrain Hypermarket) and a number of supermarket locations are currently under negotiation. We are constantly looking for new locations as

RETAIL LOGISTICS

and when they come up and we are flexible enough to move quickly when an opportunity arises. Our property strategy is being updated during the next three months so that the hot spots where we want to open can be more easily shared with developers and agents to enable an even quicker response time as well. I see good growth potential in all countries with the UAE in particular as a supermarket format (to get closer to our customers locations) as one of the best areas for rapid expansion.

How big and significant is your e-commerce sector for GĂŠant?

E-commerce is a huge opportunity for us in Gèant and as the pioneer we are already through the learning curve and now into quickly growing this channel. With the opening of Yas Mall and DragonMart 2 we will be able to open up these locations as additional e-commerce hubs in the very near future which will enable us to expand the delivery areas we can service.

Where do you foresee the e-commerce stream going in the near future? Is the popularity growing?

Right now we have a very loyal customer base for our current service offering and we are only limiting ourselves as we bring on stream more routes, however we wanted to make sure that our back end systems and procedures were in place to ensure we give

the customers the same shopping experience with a difference no matter which format you shop from us.

The popularity of the service is high and more and more people want to shop online so that we are also looking at adding more services (such as select/collect and subscriptions) at a later stage, however these will only come on stream once we are sure the systems and operation can handle it to the customers satisfaction.

Who is your target audience?

Our target audience is (in very general terms) the aspirational family; shoppers who get fed up with the weekly or monthly chore

of the supermarket shop. Our vision is to remove the boredom from shopping to become the preferred retailer in the GCC and our mission is to provide quality, freshness and a shopping experience with a difference.

Our ability to offer an assortment of products from around the world, offering our customers a little taste of home, also means that you can try products from some pretty exotic places that maybe you do not normally get an opportunity to try either at home or other retailers in the region.

Give us a sense of the size of your logistics operations—warehouses, Logistics News ME | July 2015 | 27

RETAIL LOGISTICS

storage facilities, transportation and merchandising functions?

As we have always started each country with a Hypermarket, the logistics operations are driven via that store location. As we have moved onto opening Supermarkets we are already investigating distribution centers and production centres to make sure we have the best availability of products in the region, the freshest products in the region and high quality and consistency in our “store-made” offer whether this be the morning croissant, the afternoon salad or the evening steak on the BBQ. How did the Gèant fare in 2014 vis-à-vis 2013 and what is your outlook for 2015?

Again this is commercially sensitive, however 2014 was another growth year for Fucom overall (another records beating year vs 2013) and 2015 outlook is actually to exceed the growth we attained this year.

What are your general reflections

28 | Logistics News ME | July 2015

as you stand on the threshold of your second decade of operations in the UAE? We are on the threshold of our second decade in the UAE but actually we have been trading since 2001 (we opened first in Bahrain) for Fucom. It is an exciting time for the whole business as now we can start to use the platform we have created as a

“The relationship between Fucom and Groupe Casino is one of a strong franchise partnership. Groupe Casino provides the brand knowledge, systems and support whereas Fucom delivers local knowledge and expertise.”

business over the last 15 years to propel us to even greater growth for the next 15 and beyond.

We are firmly established as a food retailer in the customers mind and it is our responsibility to ensure everyone gets the opportunity to shop with us for quality and freshness, while enjoying a shopping experience with a difference.

TECHNOLOGY-DRIVEN SOLUTION S

Fetchr’s technology-enabled apps enable speedy delivery solutions Fetchr’s proprietary technology offers an intuitive solution to parcel pickup and drop in a region where address systems can be difficult to navigate. It uses a patented technology to schedule pickup and delivery using mobile phone GPS coordinates.

N

ow delivering or receiving a package is only a (mobile) phone call away! UAE based Fetchr recently announced the launch of its app that gives both the community and businesses the ability to send or receive anything, anywhere, using just your phone’s GPS co-ordinates, entirely doing away with elaborate directions and complicated address systems.

The Fetchr app complements Dubai’s recently launched Geo Address System and enables peer to peer transactions while also facilitating business needs.

Customers wanting to send a package simply use their phone to snap a picture of the item and choose a pickup time of their convenience. A driver is dispatched at the scheduled time to the phone’s location, and can be tracked in real time.

The process is equally intuitive on the recipient side. Customers are notified that they have a delivery via the app. They choose a delivery time, and the package is brought right to their GPS location. Once the parcel is safely delivered, the sender receives a notification.

“Consumers use their phones to shop for just about everything,” avers Fetchr’s cofounder, Idriss Al Rifai. “With our app, you can now use your phone to ship anything, anywhere. We aim to change the behaviour in which people send and receive packages.”

Fetchr is a first of its kind app for the Middle East region, and also the first Silicon Valley funded app to be launched in MENA. Fetchr has successfully raised US $11 million in funding, led by New Enterprise Associates (NEA), the largest venture fund in the world. The milestone represents the largest US-based venture funds investment in the Middle East.

“Last mile delivery is one of the greatest reasons why e-commerce has not reached its full potential in the Middle East. Our mission is to empower delivery through technology and we are thrilled that NEA shares our

Idriss Al Rifai Idriss Al Rifai is an entrepreneur passionate about empowering the Middle East retail market with technologies and customer-centric services that enable the growth of ecommerce in the region. Idriss has developed and optimised a last mile delivery specifically for the e-commerce needs and requirements in the Middle East.

In 2013, Idriss founded MENA360 which has evolved to become a full end-to-end logistic solution for ecommerce companies in the region. MENA360 has more recently rebranded to Fetchr with the launch of its peer to peer delivery app.

Previously Idriss worked for MarkaVIP and the Boston Consulting Group. Idriss holds degrees from the Institut d’Etudes Politiques of Paris (Political Science) and the University of Chicago’s Booth School of Business.

Logistics News ME | July 2015 | 29

TECHNOLOGY-DRIVEN SOLUTION S

vision for overcoming the major logistical challenges that exist for deliveries in emerging markets, as well as ushering in a new era for shipping and e-commerce,” commented Fetchr’s co-founder Joy Ajlouny.

Fetchr’s incredible potential comes from elegantly solving a genuine global concern.

Billions of people around the world do not have fixed street addresses. This poses a major challenge for deliveries in the Middle East and North Africa, Sub-Saharan Africa, Asia, India, Indonesia and other emerging markets.

On the other hand, high levels of smartphone penetration region-wide secure Fetchr a large audience; 94% of MENA Internet users go online using smartphones at least once a month.

Idriss Al Rifai, Founder and CEO Fetchr responded to an exclusive questionnaire from Logistics News Middle East.

Fetchr is the first of its kind app now available in the Middle East. When was the service established and is the office now operational?

Why was Dubai & the UAE chosen as the Launch pad for the region?

In 2012, we set up a full end to end warehousing and logistics business called MENA360. In 2015, with the launch of the 30 | Logistics News ME | July 2015

“With our app, you can now use your phone to ship anything, anywhere. We aim to change the behaviour in which people send and receive packages.”

Fetchr app, MENA360 was rebranded to Fetchr as the service is now operational throughout the UAE. Dubai came as a natural choice as it is the hub for e-commerce in the region and because the UAE represents a significant market for e-commerce and its customers. We plan to have our headquarters remain in Dubai World Central’s Logistics Enclave and grow the operations from there.

Where are your services located presently?

We are currently located in Dubai and offer same day delivery throughout the UAE. In the coming weeks we will be announcing a

few new markets as we are currently setting up operations beyond the UAE. Our goal is to enable deliveries through technology throughout emerging markets.

Is a similar model being used elsewhere in the world?

The on-demand business model exists in almost every mature market around the world. On-demand delivery services do exist primarily in the United States. Two ondemand delivery services have been valued at US $500m within their first year of business.

However no service offers the level of integration we currently display, nor do they tackle the specific challenges faced in emerging markets—prevalence of cash on delivery, no address system and other imponderables.

As a new start up in the region, what opportunities and challenges do you foresee for the region?

As a technology company, our mission is to overcome the delivery logistics issues which are affecting most high growth and developing markets. E-commerce is booming but still lacking a solution tailored to offering end to end solutions.

We expect the market to grow even faster

TECHNOLOGY-DRIVEN SOLUTION S

once our solution will be rolled out to the local and international players.

The Fetchr app overcomes the lack of address issues and reduces the need for telephone calls between courier and customer.

Our logistics service has been built with all cultural and local nuances taken into consideration.

How secure is the service for guaranteed delivery to the recipients and identity verification?

The Fetchr app has been built to European standards of privacy protection. Customer geo location data is only visible to drivers.

This also helps with the identity verification process.

What are your expansion plans for the region?

We will shortly be announcing our launch in three new markets. For now I cannot elaborate.

Outside of UAE, where else is the service currently available in the Middle East?

Currently we are only available in the UAE, offering service across the seven emirates.

How for example would a package sent from Dubai reach an intended recipient say in Alexandria, Egypt? How does the package get to Egypt from the UAE? We are currently building out our ability to do international deliveries. We anticipate that this feature will be ready toward the end of this summer. The process would be very simple. The customer will snap a picture of what they want to send. The demand will hit our server and we will immediately allocate a

driver for immediate pick up. Once the driver reaches the customer, the item will be placed in a protection bag and will be sent to Egypt where we would be in charge of delivering to the end-receiver.

How does one pay for the services?

We accept cash on pickup for anyone using the app. This week we will also be adding in a feature that allows credit card payments for deliveries via the app.

Are Fetchr employees involved in delivery processes? Are there any outsource partners or other associates involved?

We are in the process of establishing international logistics partners who will enable international delivery via the app, across the globe. They will then use their couriers for the last mile in countries where we don›t have any presence. We have existing partnerships with inbound freight and cargo businesses. We are also building on our outsourced driver network which will enable faster delivery on demand.

What is your vision for Fetchr for the region?

While ecommerce has shown strong growth in the region, growth is stunted by delivery logistics failure to innovate in line with e/m-commerce. We are not trying to catch up to what everyone else (in logistics) is doing. We are revolutionising shipping by leap-frogging beyond existing shipping businesses and standards. We want to make shipping as easy as shopping, using latest technologies to change a customer experience that hasn›t changed in the past 40 years.

Joy Ajlouny For over 20 years, Joy Ajlouny has been an e-commerce industry professional whose business and fashion influence has spanned the globe. Joy is the co-founder of Fetchr, a Silicon-Valley backed Technology Company based in Dubai, aimed at solving emerging market shipping logistics.

Fetchr is the first start-up in the Middle East to be funded by a top venture capital firm in Silicon Valley. Prior to Fetchr, Joy founded Bonfaire, an internet-based VC-backed discovery platform for luxury footwear and accessories. Earlier, Joy successfully raised funds for two companies from some of the most prestigious Silicon Valley venture capital firms.

Logistics News ME | July 2015 | 31

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INTELLIGENT LOGISTICS

INTELLIGENT LOGISTICS TO COUNTER FOOD WASTAGE It is estimated that over AED 13 billion (US $3.55 billion) worth of food wasted every year in the UAE alone. That is a shocking statistic. According to a study by the United Nations, one third of perishables is lost or wasted globally – this equals 1.3 billion tonnes per year. Clearly, we need to combat this menace.

BRENT MELVIN, GENERAL MANAGER, SUPPLY CHAIN SOLUTIONS, MASSAR

I

t is estimated that nearly 3.27 million tonnes of food (worth more than AED 13 billion) produced and imported in the UAE is wasted every year, according to Abu Dhabi-based Massar Solutions, a market leader in vehicle rental, fleet and supply chain solutions. F&B fleet operators therefore need to focus on intelligent logistics to lessen and possibly eliminate this menace.

The figures were released in light of the growing efforts around reducing food wastage to help resolve many of the sustainability challenges faced by the food industry.

According to a study by the United Nations, 32.7% of food produced globally is wasted each year. With over 10 million tonnes of food being mobilised within the UAE per year, including imports and local production, it is estimated that 3.27 million tonnes of food is wasted in the UAE, enough to fill 136,250 trucks. Massar further estimates that a truck load of food is worth on average AED 100,000, meaning that the annual cost of food waste in the UAE is a staggering AED 13.6 billion (US $3.55 billion).

Commenting on this enormous wastage of scarce resources, Brent Melvin, Massar’s General Manager of Supply Chain Solutions, remarked: “The figures speak for themselves, and highlight the need for the industry to look at responsibly reducing food waste throughout the supply chain process.

Although some element of waste cannot be prevented, reducing its scale will deliver significant economic, social and environmental benefits.”

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F&B fleet operators play a critical role here, just as much as production and distribution companies. We have some of the best transport infrastructure in the UAE. However, there is an urgent need to increase the level of efficiency of F&B fleets and logistics operations. This can be achieved by adopting innovative solutions and technologies that can help ensure the quality of food is maintained right up to final delivery.

“Around 5% of the food loss can be reduced through intelligent logistics, which includes real-time checks and proper driver training,” Brent added.

Last month, Massar acquired 20 Gorica

“Advanced, optimised logistics solutions are imperative to meet the challenges presented by transporting food and pharmaceutical products for long distances in a harsh climate”

INTELLIGENT LOGISTICS

designed Krone reefer body semi-trailers in a move to modernise its growing supply chain business. The 15 metre long semi-trailers feature a state-of-the-art telematics system that allows Massar and its customers to gain deeper insight and visibility into fleet operations. This includes engine and driver performance, trailer temperature and payload condition, door openings, tyre pressure, travel time, and route progress. In case of irregularities, fluctuations or unexpected events, an immediate alert is sent directly to the user’s PC via SMS, e-mail, or a popup window.

According to recent findings, between 2030% of the trucks and delivery wagons supplying food stuff are needed to be equipped with the telematics technology.

“Real-time information is the real deal in managing F&B fleets efficiently,” Brent explains. “Data on temperature deviations during transit can only be retrieved at the end of a transport leg, by which time the cargo may have been subjected to temperature fluctuations resulting in wastage. Telematics can alert management and drivers immediately when the temperature in the trailer is too low or too high so that they can address the issue then and there.”

Massar is in the business of creating innovative mobility solutions in fleet management, car rental and supply chain management. The Supply Chain Solutions division works with clients to create scalable, flexible and adaptable supply chain solutions that can respond quickly to the changing demands of the marketplace.

Massar currently owns and operates a fleet of 9,755 vehicles and manages a further 6,755 vehicles for third party clients. The company serves over 500 clients across a variety of sectors. It is the sole distributor for Arvento Mobile Tracking and Telematics products in the UAE.

Massar acquires Gorica-Krone to boost Cold Chain fleet Massar Solutions, recently announced the acquisition of GORICA designed by Krone Reefer Body Semi Trailers, manufactured by Gorica Group, in a move to modernise its growing supply chain business.

The 15 metre long, state of the art semi-trailers are equipped with Thermo King SLX 400-50 chiller units. The units are capable of keeping produce frozen, chilled and fresh at temperatures ranging between -20 and +18 degrees Celsius throughout the supply chain.

Commenting, Brent Melvin, Massar’s General Manager of Supply Chain Solutions, stated: “Advanced, optimised logistics solutions are imperative to meet the challenges presented by transporting food and pharmaceutical products for long distances in a harsh climate. We decided to modernise our current fleet after careful consideration of our growing operational needs alongside our clients’ requirements. We also chose technology that goes beyond the current regulatory standards in place.

At an official ceremony, Domen Bockor, Gorica’s General Manager of Sales and Marketing handed the new trailers over to Brent Melvin, Massar’s General Manager of Supply Chain Solutions, in the presence of key representatives from both companies.

The intelligent telematics system provides Massar and its customers with the ability to record and constantly monitor in real time a whole range of data via a web portal. This includes engine and driver performance, trailer temperature and payload condition, door openings, tyre pressure, travel time and, route progress. In case of irregularities, fluctuations or unexpected events, an immediate alert is sent directly to the user’s PC via SMS, e-mail, or a popup window.

Logistics News ME | July 2015 | 35

COLLABORATIVE LOGISTICS

Momentive Performance Materials opens Logistics Centre Momentive Performance Materials’ recently inaugurated Logistics Centre will be operated and supervised by RSA Talke

W

aterford, New Yorkheadquartered Momentive Performance Materials (Momentive) recently inaugurated their MEA logistic Centre in Dubai. The new centre, located at the specialised service provider RSA-TALKE in the Dubai World Central Logistics City, will serve as a vital gateway to serve Momentive’s customers in the MEA region.

“Momentive is a global leader in silicones and specialty chemicals, and we are proud to serve them in our state-of-the-art chemical facility in Dubai, where we offer the highest international standards,” commented Abhishek Ajay Shah, Director of RSA-TALKE. Richard Heath, Director of RSA-TALKE, added “Dubai is an increasingly important global hub for chemicals and Momentive has correctly identified the benefits of locating its Logistics Centre at RSA-TALKE for the benefit of their customers in the MEA region and beyond.”

“Momentive is committed to developing new applications that serve our global customer base,” remarked Dr. Ian Moore, Senior Vice President and Additive Sector Leader at Momentive. “The Logistics Centre in Dubai complements our sales offices and the Technical Services Laboratory in Jebel Ali and positions us to bring enhanced value to our customers in this fast growing region.” Dr. Moore attended the event along with Momentive President and CEO Jack Boss and Senior Vice President and Basics Sector Leader Dr. Eric Thaler.

“Momentive has stringent standards regarding safety, quality and compliance,” observed Srikumar Ramakrishnan, Director of Sales, Middle East and Africa region at Momentive. “RSA TALKE has long standing expertise in chemical storage and logistics along with best-in-class processes for safety and automation. We expect that RSA TALKE will provide the highest quality service to our customers in this region,” he added further.

36 | Logistics News ME | July 2015

(L-R): Tsouli Lee, Director Global Logistics (Momentive); Abhishek Ajay Shah- Managing Director at RSA Logistics; Nalian (Momentive); Richard Heath, Director Middle East and Asia at TALKE; Jack Boss (President and CEO of MPM Momentive); Dr. Eric Thaler (Sr. VP and Sector Leader Additives Momentive) & Dr. Ian Moore (Sr. VP Momentive)

RSA Talke RSA Talke is born if a partnership between RSA Logistics and chemicals logistics services provider Talke of Germany. Logistics was established in 2007 and now has a major presence in the UAE and Kenya. RSA offers services in Contract Logistics, freight forwarding, distribution and supply chain management. Headquartered in Dubai, RSA has developed business verticals in chemicals, automotive, oil and gas and projects. RSA continue to expand its services through the Middle East & East Africa. http://www.rsatalke.com/

Momentive Performance Materials Momentive Performance Materials is a global leader in silicones and advanced materials, with a heritage of being first to market with performance applications for major industries that support and improve everyday life. The Company delivers science-based solutions by linking custom technology platforms to opportunities for customers. www.momentive.com

14 – 16 September, 2015 Dubai, United Arab Emirates

The 8th edition of the International Exhibition for Intralogistics, Warehousing, Supply Chain, Ports, Port Equipment – Products & Services www.materialshandlingME.com

Logistics News ME | July 2015 | 37

M I D -T E R M LO G I S T I C S P L A N N I N G F O R T H E C H E M I C A L S I N D U S T R Y

“The absence of Mid-Term Logistics Planning is adversely affecting the Chemicals Industry” A recent report by A.T. Kearney discloses that tactical logistics management can bring windfall savings of up to US $73 million for an average-size company.

A

.T. Kearney, a global management consultancy firm, has issued a new report focusing on mid-term logistics optimisation in the chemical

industry.

The report reveals that a look into the world of logistics in the chemicals industry unveils an interesting state of affairs. Long-term logistics planning is largely in place to ensure there is infrastructure to support chemical companies’ needs for several years. Short-term logistics runs pretty well, too, with transport and warehouse managers seeing to regular daily and weekly transportation needs.

The report indicates that in the chemicals industry, tactical logistics management poses an opportunity for competitive advantage. It can save an average-size chemicals company up to US $73 million annually through increased efficiencies and responsiveness; for the whole chemicals industry, the savings could surpass $9 billion.

Munich-based Ingo Schroeter, a principal at A.T. Kearney and one of the international authors of the paper, responded exclusively to a questionnaire by Logistics News Middle East Define Mid-Term Logistics Planning in the chemicals industry context? Is that the equivalent of Tactical Logistics Management?

Yes, Mid-term or tactical logistics planning addresses the timeframe between transport scheduling lasting a few weeks and longer logistics network planning, more than two to three years, in order to ensure available capacities for logistics assets such as transport, warehousing. In this region where chemicals players are very export oriented, supply chain excellence is essential, putting high demands on short-term, mid-term as well as long-term logistics management.

How does Mid-Term Logistics Planning contrast with Long-Term and Short-Term Logistics Planning.

Put it all into perspective?

Mid-Term logistics is in some companies the 38 | Logistics News ME | July 2015

Ingo Schroeter • Principal at A.T. Kearney • Over 14 years of consulting experience in the energy and other industries.

• Supply chain expert in Oil & Gas Upstream and Downstream and Chemicals at A.T. Kearney • Author of Mid-Terms Logistics Optimization in Chemicals paper. weak link of logistics excellence. Companies generally excel in short term logistics, the daily processes ensuring the right chemicals are shipped to the right clients and long–term logistics, which includes decisions on investments in warehouses and distribution centres as well as whether to rely on in house assets or leverage logistics service providers.

Mid-term logistics put in place three building blocks to excel—firstly capacity planning; secondly optimising the supply chain mix to different carrier segments and thirdly monitoring, which enables optimisation in short- to mediumterms of asset usage and carrier agreements.

With these three building blocks in place, notable delivery reliability and management of costs and assets can be achieved.

Is the lack of Mid-Term Logistics Planning widely prevalent in the region?

In our experience, this region is nascent when it comes to logistics planning. Many companies are still managing well the short term horizon and some have started to think more strategically about network development. The tactical level (mid-term) is mostly not yet established. Even in other regions such as Central Europe or the US only few companies master this process, hence the significant opportunity.

How and why is the absence of Mid-Term Logistics Planning costing companies financial losses and give us a sense of the scale of the losses?

Tactical logistics management can save an average-size chemicals company up to $73

million annually through increased efficiencies and responsiveness; for the whole chemicals industry, the savings could surpass $9 billion.

Even more important, tactical planning and optimisation can yield up to four percentage points of improvement in on-time, in-full delivery reliability. Single players that improve their logistics ahead of competitors can translate this advantage into more satisfied customers and increased sales.

Your study reveals the chemicals industry is in a state of tremendous flux. Please explain?

The chemicals industry faces three major challenges: One is the change of flow patterns driven by growth in wild card regions which drives volatility but also the development for further downstream products especially as Middle East chemicals players try to gain position in higher margin downstream products.

The second is capacity limitations, logistics capacity investments are reaching bottleneck status due to a lack of investments.

What factors are stressing chemicals companies supply chains? How and why?

One of the factors stressing the importance of supply chain excellence in chemicals is the continued commoditisation Best practice supply chain management offers an opportunity to differentiate in the markets of tomorrow.

Chemicals companies who provide cost effective, agile and reliable delivery to their customers will be the winners. Mid-term logistics management is one key success factor in achieving this.

Logistics News ME | July 2015 | 39

AUTOMOTIVE

Nissan ME gains traction, finds road to progress 40 | Logistics News ME | July 2015

AUTOMOTIVE

With its sturdy links, strong provenance and legacy, Nissan Middle East is well on course to maintaining its lead and momentum as a major pioneering automotive brand in the region. Now with the introduction of the new Nissan Hybrid Pathfinder, the company has lived up to its reputation as the automotive company with a line-up that is one of the broadest and most popular in the region, covering almost every segment of the automotive market.

N

issan’s relationship with the Middle East goes back to 1957 when the first Nissan vehicles were delivered to Saudi Arabia. Following robust moorings, the pioneering company was the first Japanese auto brand to establish a fully-fledged presence on the ground with an office in the Jebel Ali Free Zone in 1994. Since then Nissan has grown into one of the most recognized automotive brands in the Middle East.

As a company with a rich heritage in the Middle East, Nissan is committed to growing its operations in the region, a key growth market. The strategy for success is based on the well-known Nissan global growth strategy ‘Power 88’, a wide ranging six-year business plan initiated by president and CEO Carlos Ghosn, that will accelerate the company›s growth across new markets and segments though fiscal 2016.

From its pioneering crossover vehicles, class-leading small cars and Hybrid Pathfinder to the legendary Nissan GT-R and all-conquering SUVs such as the ‘Hero of All Terrain in Life’, the Nissan Patrol - Nissan Middle East’s vehicle range is extensive and appeals to every sector among the brand’s numerous aficionados in the region. Logistics News Middle East asks Samir Cherfan, MD,

Nissan Middle East, about the long term roadmap to achieving Nissan›s corporate goals and how he is enjoying life in the driving seat.

How have you performed in 2014 and how does it compare with 2013? What are 2015 indicators for sales?

Nissan has maintained its position as the region’s fastest-growing automotive brand in the GCC for the third consecutive year, selling in the Middle East a record breaking 219,129 units in the 2014 financial year, up 3.3% on 2013. In addition Nissan achieved the best ever customer satisfaction results through toplevel quality customer service.

In the GCC specifically, Nissan recorded an 18.1% sales increase with 185,135 units sold in 2014 versus 156,778 in 2013 reaching 10.3% market share.

Under our Power 88 Mid Term strategic plan, Nissan Middle East is targeting to sell in the GCC 240,000 units by Fiscal Year (FY) 16 and reach 12.3% market share in the GCC. For KSA, we have announced we are targeting to sell 100K units by FY16. This strategy has been extremely effective for us in the region as we have demonstrated with our recent financial results.

Logistics News ME | July 2015 | 41

AUTOMOTIVE

price due to our diversity of plants. Our innovative and exciting technology and the increasing brand perception is a major part of our appeal as evidenced by recordbreaking sales of the Nissan Patrol and Juke.

Nissan Middle East sources its cars from various Nissan factories across the world and can thus bring top-quality vehicles at a favourable price. Our innovative and exciting technology and the increasing brand perception are a major part of our appeal.

Nissan Global Nissan Motor Company is Japan’s second-largest automotive company, headquartered in Yokohama, Japan, and is part of the Renault-Nissan alliance. Established in Yokohama City, Kanagawa Prefecture, in 1933, Nissan currently manufactures vehicles in 20 countries and areas around the world, including Japan. Nissan offers products and services in more than 16 countries in the Middle East alone.

Which countries in the region hold the most potential for future growth?

The biggest growth markets for Nissan in the Middle East are the UAE and Saudi Arabia.

In the UAE, Nissan maintained its strong second position in the sales charts, selling 63,036 units—up by 10% versus 2013 and achieving a 15.3% market share. Nissan’s purchase consideration in the UAE has also increased by 46% in the past two years, closing the gap with the market leader. In Saudi Arabia, after the first full year of operation of its revival plan, Nissan with its Kingdom-wide dealer Alissa Auto has reached the third position in sales with 61,806 units, reaching a 7.2% market share, which represents a 141.7% growth year on year vs FY13. Furthermore Nissan brand purchase consideration has strengthened by 27%, reaching the second position in the market How are Nissan’s commercial vehicles faring in the region?

Our commercial vehicles are faring very well across our markets in the Middle East. In fact, we are witnessing a significant rise in fleet sales within our Light Commercial Vehicles (LCVs) segment, with the Nissan Urvan recording a 24% growth in GCC compared to last year.

42 | Logistics News ME | July 2015

There has been an influx of cars from South Korea and more lately from China. How has this impacted the sales of Japanese cars and Nissan in particular?

We have not witnessed a significant sales impact from any new automotive manufacturers trading in the Middle East.

We believe that the combination of our Middle East legacy dating back to the 1950’s, our Japanese ‘Kaizen’ approach to quality enhancement and the technology that we instill into all our models, differentiates us from all of our competitors. We are focused on delivering the most innovative and quality driven cars possible and we are seeing this resonate with our regional consumers. This innovation is seen from our flagship models like the GT-R, Patrol, X-Trail and Maxima.

Are you more optimistic about increased sales in the face of presently falling fuel prices and are you also exploring alternative fuels like hydrogen or hybrid engines?

According to our analysis of the market, we forecast that the oil barrel will stabilise around US $65 and that the Japanese Yen vs US $ exchange rate will settle around US $120. Under these market conditions we foresee that the TIV (Total Industry Volume) in the GCC will grow by 4%.

In the Middle East, Nissan can bring topquality vehicles to the Gulf at a favorable

Tell us about the Fuel Efficiency credentials of the Nissan Hybrid Pathfinder?

We are big believers in supporting sustainable driving technology and offering greater fuel efficiency across all our models.

With this in mind, we recently launched a Nissan Hybrid Pathfinder, providing Middle East customers with an eco-friendly SUV that does not compromise the drive experience.

As demand for high efficiency gasolineelectric hybrid vehicles grows, the Hybrid Pathfinder offers a uniquely Nissan “innovation” approach that increases fuel economy and driving range without compromising its seven passenger, three row roominess, ample cargo space or responsive performance compared to Pathfinder V6equipped models. The Hybrid Pathfinder is 24% more fuel efficient than the conventional mid-sized SUV with considerable reduction in CO2 emissions (207g/km).

Nissan has a clear vision of the future of transportation through Hybrid Pathfinder with high-quality zero-emissions, which is well engineered, attractive, accessible and fun to drive.

The Hybrid Pathfinder’s (HEV) large 74 L fuel tank, the same as conventional models, offers a best-in-class range of 785 km on a single tank, and further efficient fuel consumption of 9.1 L/100km. Thanks to a responsive 250-horsepower, 2.5 L supercharged, 4-cylinder petrol engine combined with an electric motor, Hybrid Pathfinder goes the distance for you in every way.

Coming in two and four wheel drive models, the Pathfinder has a supercharged 2.5-litre gasoline engine and an electric motor paired to a compact Lithium-ion (Liion) battery. The Li-ion battery fits under the third row seat so there is no reduction in passenger seating capacity, legroom or overall space. With the flat rather than raised floor, entry and exit to and from every row is as easy and convenient as the standard Pathfinder models.

Who is this model targeted for and how has

AUTOMOTIVE

Samir Cherfan Managing Director, Nissan Middle East FZE CAREER HISTORY He joined Renault in 1992 and progressed in the initial 11 years of his career with varied management positions linked with research, development, purchasing and manufacturing. A further seven years were spent in vehicle program management where he was given the role of Program Director for the mid-range segment for international markets. In 2010, he moved to the front line as Managing Director, Renault Retail Group in Paris, the position from which he joined Nissan Middle East in 2012. Since 2013, has also taken the role as Managing Director of Nissan Saudi Arabia, the distributor company of Nissan in the Kingdom. He drives the growth of Nissan brand across 21 countries with over 200 employees distributed through several main hubs.

this model been performing in the region?

There are many potential opportunities in fleet sales as more companies are looking for ways to reduce their operational costs but keeping their employees on-the-go. The organisations we believe would be interested in this Hybrid model include those that have employees that spend a lot of time on the road, such as with fleets. Additionally the Hybrid Pathfinder appeals to companies that want to reduce their environmental footprint and have a commitment to sustainability.

We believe the Hybrid Pathfinder appeals to a wide consumer base. With its impressive power and space as an SUV, it is a great choice for outgoing explorer. However its fuel efficiency credentials also make it a desirable car for families who do a lot of driving and are more conscious about running costs.

What opportunities and challenges do you foresee for the Hybrid Pathfinder in the region in the foreseeable future?

We see a lot of opportunity for the Hybrid Pathfinder in the Middle East market, especially as countries start to make more of an effort to drive sustainability initiatives.

The UAE has been a front runner in this area with the launch of the 2030 Abu Dhabi Sustainability Initiative and Dubai’s Green Economy for Sustainable Development.

As Middle East consumers become more eco-aware and environmentally conscious, we foresee that Hybrids will start to increase in popularity the same way they have in Western markets. The big ideal doesn’t just

come from the fuel efficiency and cost reduction but from an ethos to be more environmentally responsible.

Will the installation of more charging stations and shorter recharging time fuel demand for more hybrid / electric cars?

It is important to note that Hybrid cars do not usually need to be charged. DEWA’s solar-powered charging stations that were launched in Dubai show a clear commitment from the government to support smarter and more sustainable cities in the run up to Expo 2020. Even though Nissan Hybrid Pathfinder car technology doesn’t require charging stations, initiatives like this are instrumental in helping to build affinity with more environmentally friendly vehicles.

What are the expansion plans for Nissan Automotive in the region?

Nissan’s strategy for success is based on the well-known Nissan global growth strategy ‘Power 88’. Under the plan, Nissan Middle East has announced that it will be targeting to sell 240,000 units in the GCC by fiscal year 2016 reaching 12.3% market share.

This is our third successive year of record growth in the Middle East and the momentum will continue due to our broad product line, top-quality customer service, outstanding dealership network, and commitment to our brand’s message of ‘innovation that excites’ that we live daily with all touch points and at all levels. The record breaking results are testament to the success of our Power 88 strategy.

AWARDS During his extensive career path Cherfan was rewarded with a number of prestigious awards in recognition of his leadership achievements including: Top 100 Leaders in the MENA Region’ Award

by Forbes Middle East. Under his leadership, Nissan Middle East, in 2014, has been for the third consecutive year the most awarded automotive brand in the region with 15 awards, reaching close to 40 awards since 2012; achieved three Guinness World Records, has received more than 30 product awards from the market since 2012; and has also received prestigious internal awards such as 3 AMI Chairman Awards and a Finalist CEO Brand Award as a recognition of Nissan Regional performance.

Logistics News ME | July 2015 | 43

APPOINTMENTS

POWER PLAYERS

ROCKWELL AUTOMATION NAMES NEW PRESIDENT FOR EMEA REGION

GES APPOINTS MUSTAPHA NEW CIO, ADEL CHAVELEH KAWAM AS PRESIDENT HEADS TO CRANE AND CEO WORLDWIDE LOGISTICS

Thomas Donato is appointed president of Rockwell Automation’s Europe, Middle East and Africa (EMEA) region.

Donato was most recently Rockwell Automation’s regional vice president in Canada. He also served as regional sales director of Rockwell Automation’s Northern and Eastern European region. Previously, he was the business director for the company’s services and solutions business in EMEA. Donato is now responsible for driving growth in this important region.

He has 18 years of automation industry experience, including the last 11 years with Rockwell Automation.

“Thomas’ extensive experience makes him the ideal candidate for this key leadership role,” said John McDermott, Rockwell Automation Sr. Vice President, Global Sales and Marketing.

Donato holds a Diplom-Ingenieur degree in automation and controls engineering from the University of Applied Sciences in Darmstadt, Germany. He also studied at the Dublin Institute of Technology in Ireland.

Mustapha Kawam has been appointed President and CEO of Globe Express Services. Kawam joined Globe Express Services in 1995 and has held a wide range of leadership positions in the company. Since 2009, he has served as Managing Director - Gulf States at Globe Express Services.

Following his appointment, Kawam believes his utmost priority is to raise employee engagement. He also believes, promoting a culture of integrity and trustworthiness throughout the organisation is one fundamental imperative.

Commenting on his appointment, Kawam remarked, “It’s been a privilege to work for the Group for over 20 years and I am confident that we can together achieve success and take the company to the next level.”

Safi Kalo, Chairman, Globe Express Services, stated: “Mustapha has been an asset to the company, contributing to its growth and excellence in his previous roles for the last two decades.”

44 | Logistics News ME | July 2015

Crane Worldwide Logistics, a full-service air, ocean, trucking, customs brokerage and logistics company, recently named veteran technology executive, Adel Chaveleh as its CIO. Chaveleh will be tasked with driving a transformation of how Crane Worldwide Logistics uses technology both externally and internally.

Chaveleh has more than 17 years of technology design and management experience. He has been successful at leading large-scale projects from concept to deployment across healthcare, entertainment and energy industries.

“Technology is critical for Crane Worldwide Logistics’ future success. So finding the right leader for this role was one of my absolute top priorities,” John Magee, President and CEO, of Crane Worldwide Logistics said “I’m thrilled to join Crane Worldwide Logistics as CIO at a time when John and the leadership team are placing a great investment in technology and prioritising its role in Crane Worldwide’s future success,” commented Chaveleh.

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STORAGE SOLUTIONS

MELN HOSTS ITS INAUGURAL NETWORKING CONFERENCE IN DUBAI Middle East Logistics Network’s long-awaited, maiden networking conference at a posh Dubai venue drew a multinational audience and at the time of writing, two confirmed deals for the participants.

T

he first three-day inaugural networking conference under the auspices of the Middle East Logistics Network (MELN) was recently held between 13 to 15 June 2015 at the Al Khor Conference Centre in the Radisson Blu Deira Hotel.

Delegates representing companies from Saudi Arabia, Belgium, Canada, India, Egypt, Nigeria, Zimbabwe and the UAE attended the Conference.

The assembled officials engaged and networked with their peers one-onone to get better acquainted and to explore business, marketing and promotional opportunities.

In his keynote address, Syed Zakiuddin, General Manager, of the DWC-headquartered MELN and the strong proponent of this network, welcomed the participants at this 46 | Logistics News ME | July 2015

unique, one-of-its-kind event which brought together a multi-continental mix of partakers who hobnobbed with each other, forged new relations and partnerships and held private interactive meetings to make cosy, corporate presentations in a tranquil ambience.

Reinforcing the Middle East Networking tagline ‘MELN: Where Forwarders Move Forward’, Syed explained that the concept was to integrate the many facets of the multi-dimensional logistics and supply chain business and community and to come together and open new vistas for business growth by initiating and closing business deals. It was not just business all the way and there were lighter moments in terms of informal dinner gatherings, entertainment

and a traditional Dubai Safari for attendees.

At the Conference, now to become a regular annual fixture, Syed unfurled ‘MELN Link’ or simply ‘MELNK’, a concept whereby carefully sieved and measured business leads generated through the network from various regions around the world will be passed on to members to pursue. He confirmed that at the time of writing that at least two large deals had been successfully sealed by attending members. There was also the potential and possibility of some other regional and international deals also fructifying in the foreseeable future.

Logistics News Middle East was the official media partner for the event and spoke exclusively to Syed on the sideline of the Conference.

STORAGE SOLUTIONS

The future and larger vision of MELN is to have members from multinational companies as its base members so that MELN members can get some share of their global imports and exports volume

members. Also we have local and global logistics companies, ship charterers, GSAs of airlines and other large and medium-sized business houses as current MELN members.

On the privileges & benefits members enjoy: Members get access to the data base of various local and international importers and exporters so that they can negotiate future shipments directly.

MELN will source for the cargoes and share the leads with its protected members.

On what is the Middle East Logistics Network (MELN) all about and why was it conceived and the driving force behind it: The main aim behind the Middle East Logistics Network is to have a network head quartered in Dubai as the regional hub for major global logistic companies.

MELN with its base in Middle East and with major trading companies of this region being its members will have unique advantage where both buyers and sellers can meet at a single platform to negotiate future business deals.

The best advantage is that MELN has members who know the region and the local rules and regulations better will be able to extend assistance to our other Logistics companies and trading partners globally.

This is where forwarders move forward. The driving force behind this network is a dedicated, committed

team of experienced Shipping and Logistics professionals with decades of experience in this field. Key board members have worked in this region for some of the globally acclaimed shipping and logistic companies.

On MELN’s goals: MELN’s key objective is convergence— to bring Middle East exporters and importers on the same platform in the same venue along with other global forwarders so that long term logistic deals can be concluded during the conference.

On the current composition and who is legible to become a member: The current composition consists of logistic companies from over 44 countries along with some UAE and Far East based trading companies, plus container leasing and manufacturers as

On the response to the first edition Conference: The response to the first conference was very encouraging and the members were very positive on the future growth of the MELN network in this region.

Some members have taken initiative and suggested their overseas partners to join MELN. This reflects strong belief in MELN by its members.

On the steps are being taken to broaden the membership base: Members with their contacts in various sectors of the Logistics / Shipping and Air cargo field are promoting the MELN-MELINK concept and expect some positive development in the coming months. Watch this space!

On the future and larger vision for MELN: The future and larger vision of MELN is to have members from multinational companies as its base members so that MELN members can get some share of their global imports and exports volume.

We have plans to have MELN’s own House Bill of Lading (HBL) in the future. The modalities are currently being worked out. This will be unique to the MELN & MELNK concept.

Logistics News ME | July 2015 | 47

SAUDI ARABIA POWER GRID

Alstom, National Grid SA sign MoU

Alstom & National Grid SA will cooperate in fields of standards and specifications, engineering and design, maintenance and operation, technical exchange forums and technology roadmap.

A

lstom Grid and National Grid SA of the Kingdom of Saudi Arabia recently signed a Memorandum of Understanding (MoU) under which the two companies will cooperate in developing and advancing electricity infrastructure in the Kingdom of Saudi Arabia on a long-term basis. This MoU was signed by Mohammad Al-Rafaa, Engineering Vice President of National Grid SA and Michel Augonnet, Senior Vice President, Commercial Solutions, Alstom Grid during a ceremony organised at the Alstom Grid Headquarters in Paris.

This cooperation between Alstom and National Grid SA includes main equipment such as HV switchgear, power transformers, substation automation solutions including protection and measurement IEDs (Intelligent Electric Devices), digital substation, smart grid and super-grid applications, network management as well as maintenance.

Additionally, this MoU includes a range of training courses conducted by experts from the Alstom Technical Institute, providing National Grid SA engineers with the optimum level of technical information adapted to daily requirements.

The 130-year-old Alstom Grid ranks top three in the electrical transmission sector with an annual sales turnover of €3.8 billion.

Alstom Grid’s 17,000 employees are spread across 87 manufacturing and engineering sites.

National Grid SA is wholly owned by the Saudi Electricity Company (SEC). Its tasks and responsibilities include electricity transmission in the Kingdom of Saudi Arabia and the operation, control, and maintenance of the electrical grid. During that year, two more business lines were introduced: engineering and projects, management and supply chain.

The lengths of electrical transmission networks grew by 4.7%) to 54,318 kmcircular by launching a number of new projects, and also strengthened enhanced projects, aiming for improvement and development of power transmission

48 | Logistics News ME | July 2015

MOHAMMAD AL-RAFAA (L) AND MICHEL AUGONNET AT THE MOU SIGNING CEREMONY IN THE ALSTOM GRID’S PARIS HEADQUARTERS

networks and increasing their operational efficiency. A total 38 new substations and 107 transformers were added. Eleven transformers were installed in current transmission substations and eight were replaced, amounting to a total capacity of

15,565 MVA (Mega Volt Amperes).

Transmission networks measuring about 3,029 km-circular were also added. The total voltage of the substations and ultra-high voltage substations reached 699 and 1,982 transformers with a total capacity of 203,006 MVA.

EXPRESS DELIVERIES—QATAR

Pioneer DHL Express SPEEDS ALONG IN QATAR

As the forerunner to the express logistics and supply chain sector development in Qatar, DHL Express had progressed swiftly, taking great strides not only in energy but in several of the country’s other industry segments.

D

HL Express has had a longestablished presence in Qatar.

The company, a pioneer in Qatar was the country’s first-ever express deliveries and logistics services provider and has lived up to its reputation of being the industry leader in this segment. It opened for business in 1979 and is preparing to commemorate its 36th anniversary.

DHL Express has lived up to its corporate objective to be connect the country to the rest of the world. Through innovation and service offerings it has maintained the lead over its peers in the country. The company has also been innovating along the way, integrating the latest technological advancements, such as a tracking system for monitoring consignments for security and ensuring timely deliveries.

DHL Express’ involvement with Qatar has been extensive and covers diverse industry verticals. The company has traditionally been involved with energy-rich Qatar’s oil and gas sectors for over three decades. Over the years the company has evolved and now engages with customers from a variety of the industries including healthcare, education, financial, aviation, automotive, retail and FMCG. Logistics News Middle East engaged with Nael Attiyat, Country Manager of DHL Express Qatar, in an exclusive and wideranging interview where he spoke on a number of issues confronting the company and in Qatar.

How is DHL Express Qatar faring under your watch? How is it performing to date?

DHL has experienced double digit growth over the years. We have also undergone proactive developments that have led us to expanding the company by establishing several new service points in order to improve our services and strengthen our position in the Qatari market.

The positive momentum that we have

only the beginning of future expansion plans that will solidify the company’s position in the national economy.

Nael Attiyat Country Manager, DHL Qatar Express gained is largely due to the steadfast commitment and dedication of our professional team. I would like to commend them for their hard work, and they have been instrumental in collaborating to ensure that the company realises its strategic objectives and raises the level of excellence within the industry.

How does current performance compare with 2014 and 2013 performance?

DHL’s performance has increased in comparison to 2013 and 2014 performance, as we have recently witnessed double-digit growth. This positive growth and development comes as a direct result of having established and expanded our service point and retail footprint.

Furthermore, we have started our own dedicated DHL flights in Qatar, to increase efficiency in the local market. These signal

What impact is the decline in oil prices having on business for DHL Express Qatar?

Despite erratic oil prices, Qatar maintains a resilient oil and gas sector as a result of the country’s leading position in the LNG market, as well as the emerging developments in the new gas sector.

That being said, Qatar continues to take great strides towards diversifying its economy and moving away from its dependence on oil. As a result of the country’ active effort to pursue these goals, the non-oil sectors now account for a significant portion of the country’s GDP. The substantial growth these diverse sectors are experiencing continues; strongly backed by government, these sectors recorded an 18% average annual growth between 2008 and 2013. Qatar also remains committed to strengthening its position as an international financial and tourist hub, leading towards increased infrastructure projects, especially in light of FIFA 2022 World Cup, which is set to generate a tremendous amount of global awareness as well as an unprecedented influx of visitors.

Aside from these proactive initiatives of the government, the country also has a wealth of human resources, reflected by the increasing demographic surrounding the working age population. This positive trend is expected to continue with the population set to grow by an additional 10% annually, eventually reaching 2.5 million by 2018.

The stable inflation is expected to run at around 4.0% over the next five years, resulting from low oil prices, which help balance the upward pressure brought on by the planned and aggressive investment programme. With these elements taken into consideration, I believe the economy is more than ready to face the erratic realities of the market and emerge even stronger.

Logistics News ME | July 2015 | 49

EXPRESS DELIVERIES—QATAR

What are the opportunities and challenges for DHL Express in the wider context for UK-GCC trade?

The UK and the GCC have always had a strong and flourishing trade relationship. In fact, recent figures have recorded that trade exchange between the friendly nations has hit US$33 billion.

These developments and positive trends carry a wide range of possibilities for our company. We are ready to address any potential issues through our dedicated fleet of over 45 vehicles and more than 11 service points in strategic business locations across Qatar. We currently provide services for over 1,800 customers and we have continued to be the preferred partner for businesses who are looking to expand their reach across the world.

As we are still looking for ways to improve our operations, we are in the process of building new facilities, expanding our fleet, integrating modern technology and applications, as well as intensifying staff training.

Our strategic plans for Qatar are well 50 | Logistics News ME | July 2015

“Qatar is one of the most dynamic and fastest growing economies in the GCC. The national 2030 development vision has further stimulated progress and cultivated a culture of excellence across all sectors.” underway with the introduction of our dedicated air network to Qatar, our multiple award-winning call centers, and the sponsorship of key seminars and conferences.

Through these developments, we hope to strengthen subcontractor partnerships and our position in the market as a premiere logistics provider.

What is the nature of goods DHL Express moves in and out of Qatar?

As the hydrocarbon sector forms a large proportion of our market. We also serve the healthcare, education, financial, aviation, automotive, retail and FMCG sectors, which are equally important.

What are DHL Express Qatar’s expansion plans?

We are looking to broaden our reach not only across the region but throughout the international community as well. As we further strengthen our reputation as the leading express logistics service provider we want to continuously improve our standard of excellence with regards to serving clients at the level that they have now come to expect from DHL. Time is perhaps the most crucial aspect of our expansion plans, and we aim to provide quick and efficient logistics services.

We will establish a new local facility in the near future, following our recent opening in Messaieed just earlier this year and previously the Barwa Village which connected Al Wakra and the airport as well

EXPRESS DELIVERIES—QATAR

as the facility in the Qatar Science and Technology Park to serve the needs of students and the present organisations. We also aim to have additional facilities and service points around Qatar in the near future.

What sectors do you see growing for DHL in Qatar?

Qatar is one of the most dynamic and fastest growing economies in the GCC. The national 2030 development vision has further stimulated progress and cultivated a culture of excellence across all sectors. To date, we are seeing strong demand from the construction segment and the hospitality sector, among other key industries.

With the growth of these businesses, there is a stronger need for connectivity, which opens the door for DHL to offer its exemplary service. We remain dedicated to helping businesses achieve their goals and thereby strengthen the economy. As the state grows, so will our services, which is why we strive to provide only the best to our customers and aim to be trusted partners throughout the company’s evolution.

Like Bahrain & Dubai, UAE and now Riyadh in Saudi Arabia—do you foresee Qatar becoming a logistics hub for DHL Qatar?

Qatar is currently enjoying high GDP growth and positive developments throughout its foreign trade activities. In fact, according to the Qatar Statistics Authority, overall imports increased four-fold between 2001 and 2010 from US $3.7 billion to US $15.7 billion.

This positive trend is expected to continue especially with preparations for the 2022 FIFA World Cup well underway, which has become the catalyst for infrastructure projects such as Qatar›s Metro System, light rail system, and many others. Naturally, the delivery and logistics sectors will reflect and accommodate the diverse markets’ expansion. These businesses will go on to become our most loyal clients as we support their need for excellent, reliable and efficient logistics services.

What is the message from DHL Express Qatar at this juncture?

Customer service is a key priority. Providing reliable and efficient logistical services is our trademark, and it is by these values that we

have become trusted partners of many important organisations and individuals alike.

To maintain our strict and efficient standards we undergo regular internal evaluation to gauge our own performance to ensure that we are always meeting our established global key performance indicators (KPIs); DHL Qatar currently stands on top of the Customer Service KPI league in MENA. These indicators take into account service level, call centre abandoned call rates, trace resolution and claim and complaint resolution.

We are always striving to improve our service offering to ensure that our customers receive the highest levels of innovative services and solutions to support the growth and meet the need of their businesses. Our strategic initiatives include the introduction of a dedicated air network to Qatar scheduled five days a week from the DHL Express Middle East headquarters in Bahrain into Qatar’s Doha International Airport. The new flights aim to satisfy the growing demand for express services connecting Qatar to the rest of the global network and will effectively reduce transit time for packages from North and South America by one day.

Logistics News ME | July 2015 | 51

HOUSEHOLD GOODS

Recke’s radical range makes inroads in the region Recke, a major Hong Kong-based brand with a growing household products range, is steadily making forays in the Middle East with its beachhead presence in the UAE.

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t appears Recke’s moment of reckoning in the Middle East has come. After relishing successes in its native Hong Kong, Recke is stirring the region with the launch of its advanced multi-functional cookers.

The company’s product range also comprises electronics, audio-video products and household appliances.

By setting up its regional offices in Dubai, Recke has gained a foot-hold in the Middle East space. Suchit Kumar, Country Business Development Manager, Recke, spoke extensively to Logistics News Middle East about the advent of the brand in the region and its plans for consolidation and growth in the future.

“The UAE has transformed itself into a major global hub where citizens from over 200 nationalities live and work. The steady influx of expatriates in addition to the growing national population base is steadily swelling the numbers of residents and households in the country and that in itself constitutes a major catchment target audience for our products,” explained Suchit Kumar as he outlined the brand’s strategy in the region.

“In the Middle East as in the rest of the world, work demands leads to a challenging lifestyle, one in which time becomes a scarce commodity. In this backdrop, eating healthy takes a back seat, although it continues to remain a prime reason of concern,” he elaborated further.

Kumar believes the Recke smart MultiCooker is the answer to good cooking.

“Imagine having loaded your ingredients in a device when setting out to work, and having it start up and cook by itself in the evening, to render a yummy meal all ready to be eaten. Hence, a multicooker makes absolute sense for this market,” he asserted.

In the UAE, Recke has launched four models, – the MC-110, MC-150, MC-150 Limited Edition and the high-end MC-X170.

Kumar also affirmed that they are contemplating some additional models in the brand’s range of multicookers that will soon be launched in the market, including a

52 | Logistics News ME | July 2015

SUCHIT KUMAR, PROJECT DIRECTOR, RECKE

HOUSEHOLD GOODS

unique appliance which makes bread.

According to Kumar, the Recke MultiCooker is capable of cooking any dish that one would prepare conventionally. This is achieved through programmed settings, which each MultiCooker has in variation.

The entry level MC-110, for example, has 10 automated cooking programmes that are capable of cooking over 150 recipes.

Then, the top of the range MC-X170 has 69 cooking programmes, out of which 20 are automated programmes capable of cooking over 250 dishes. The MultiCookers feature a manual mode that allows for human input that further broadens the scope of dishes produced. Convenience features coupled with a space saving design, the Recke MultiCooker offers ultimate ease for the modern family.

An interesting feature that’s included in the mid-range model MC-150 is the 3D heating option that is tailor-made for baking and ensures all round cooking of almost any food type.

Before Recke embarked in the Middle East it has already broke ground in the Russianspeaking markets of the CIS states, Central Asia and the Caucasus. Kumar is buoyed by the success of the brand in this region. “The uptake of has been so rampant that almost every home in Russia and this region has at least one Recke MultiCooker,” he remarked.

Kumar also dwelt on the logistics processes of Recke—operations that are key to the success of the brand as it penetrates into regional markets. The corporate office in Hong Kong houses all of the company’s R&D activities, laboratories and product conceptualization.

The brand’s MultiCookers are manufactured at a hightech facility in China. Logistically speaking, it was important to select a production plant close to the parent company and hence China made logical sense.

According to Kumar, Recke products are not too heavy and stack up easily, so moving them in large quantities to various parts of the world is not too much of a challenge.

Kumar stressed that Recke has plans to take their products the world over. Dubai will be the hub for operations throughout the GCC countries and the brand fully expects to roll out its complete product range in the region shortly.

Detailing the logistics chain in the UAE Kumar indicated that Fire Bird Distribution, with warehouses in Jebel Ali was the master distributor for the company. The Jebel Ali facility is being used as the hub for receiving and re-distributing the products. “Our experience there has been extremely good because of the ease with which we can operate. It takes us no more than one hour to

“We are in talks with other power retailers as well in the UAE and the region. We are targeting to reach sales of 10,000 units per month by the end of the year,” clear customs and delivers our product to our retail partners,” Kumar stated.

“The organisation, connectivity and efficiency of logistics and supply chain processes in Dubai and the UAE are remarkable and continued investment in further developing new infrastructure and long-term growth such as the ambitious Etihad Rail Project for new freight capacity bodes well for the industry in the UAE,” opined Kumar who was appreciative of the high quality and the range and multiplicity of logistics services including freight forwarding and clearance, warehousing, transportation and distribution available in the UAE. The location of Al Maktoum International Airport and its air cargo complex; the Dubai World Central and its logistics enclave coupled with the Jebel Ali Port within close proximity of each other has given us a massive boost to our procurement, distribution and logistical operations. “We can now direct our products and shipments to not only anywhere in the Middle East and our immediate hinterland but also across the entire globe. The facilities link sea to air and land and eventually rail and any combination thereof seamlessly,” Kumar further added.

Recke is also available across leading e-commerce websites such as Souq.com and Jadopado.com to name a few. “This is because e-commerce has being taken very well and seriously by the consumers in the UAE. Recke is a tech savvy brand and our bold move to be listed on an e-commerce site depicts that perfectly,’’ averred Kumar.

In terms of the physical stores, Recke products are already available in Hyper Panda, the Ansar Mall and in Ansar Gallery in the UAE. The company has set itself ambitious targets and is seeking new partners and distributors to make their premium products available more extensively and thereby broaden its customer base. “We are in talks with other power retailers as well in the UAE and the region. We are targeting to reach sales of 10,000 units per month by the end of the year,” Kumar concluded optimistically.

RECKE MC-110

RECKE MC-150 LTD

RECKE MC-X170 Logistics News ME | July 2015 | 53

PROFESSIONAL PERSPECTIVE

Integration, Integration, Integration!

By Prakash ‘PK’ Menon In the supply chain arena, success comes down to three key elements...

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hen it comes to making an astute property investment decision in real estate the experts advise us to look for three key things – Location, Location, Location!

Similarly in the supply chain arena, success also comes down to three key elements - Integration, Integration, Integration! In the retail sector in particular, integration is essential to the efficient and effective running of the supply chain.

Why? Because unlike the assumption many CEO’s make that supply chain is simply the logistics functions (transportation and warehousing), it is in fact the end-to-end, cash-to-cash operation of the entire organisation, from planning and buying goods to how those goods leave the store. I would go so far as to say that supply chain is the business. This article explores why an integrated approach to supply chain management is crucial to get cut through in today’s cutthroat global retail environment and highlights the five most important attributes a supply chain leader should have.

54 | Logistics News ME | July 2015

PROFESSIONAL PERSPECTIVE

Far too many senior and middle management executives continue to undervalue the role of the company’s supply chain. Instead they focus most of their attention on the front end of the business – the stores and the merchandise. Failure to focus on people and processes however has resulted in the demise of more businesses than failure in any other part of the business. In other words, more retail business take a downward spiral due to ineffective supply chain and leadership strategies than as a result of any other function in the organisation.

So what is an integrated supply chain? An integrated supply chain is one that balances the five core supply chain principles of service, safety, flexibility, speed and cost.

When a company has an integrated supply chain, merchandise planners and buyers know how much to buy and how fast their stock will move from supplier to warehouse to store to consumer.

This can only be achieved through a culture of transparency and collaboration, which is driven from the CEO down the line. To put it another way, an integrated supply chain is one in which every division of the company, from the stores, the marketing and the buying and merchandise planning functions to the warehouses, the suppliers, the transportation and the financial controllers are in sync with one another, with the consumer at the heart of every decision made.

But isn’t cost reduction the chief objective of the supply chain management function, I hear you ask? Of course it is! But without an integrated approach to supply chain management, whereby every function of the business has a clear focus on the consumer first and foremost and where each area works in a coordinated manner towards a common goal, the cost reductions simply won’t be achieved.

When every link in the supply chain is coordinated and works collaboratively, unnecessary effort and cost are eliminated and service levels are improved. The result is stronger customer engagement, streamlined and more efficient back end functions, greater workplace morale, a stronger point of difference to your competitors and ultimately, increased profitability.

To be classed as a great CEO in retail, one should have a strong understanding and appreciation of what supply chain means to the business as a whole because it can be the real game changer. One of the primary responsibilities of a Supply Chain Director or Chief Operations Officer should be to educate the CEO, their senior management colleagues and the entire team about the supply chain function and why it is so crucial to every aspect of the business.

explain why such a change is beneficial and be actively involved in the transition, regularly walking the floor and liaising with staff in various departments rather than sitting in their ‘ivory tower’ and expecting middle management to drive the change on the ground and report to them from time to time.

CHARACTERISTICS: The following are five key attributes of a world-class supply chain executive: Be a global citizen: A top supply chain •executive should be comfortable working with

Prakash ‘PK’ Menon • Executive Director, Thought Leaders Middle East • One of the world›s most respected supply chain experts and leadership authorities.

• Internationally acclaimed speaker, thought leader and mentor • Author—‘Driven’, ‘Fail Smart’ and ‘Supply Chain is Sexy’ For instance, just imagine if a new fashion line was being heavily promoted by the marketing team across multiple channels but the buying and merchandise planning team had not been made aware of the promotion in time to order the volume of stock to meet the anticipated demand.

Imagine the disgruntlement of customers who flock to the store excited to be amongst the first to be seen in the latest apparel only to find it out of stock!

Another example is an oversupply of old stock that takes up valuable space gathering dust on the warehouse shelves all because of a glitch in the lines of communication. Then when new stock comes in, there’s no room to store it!

For the end-to-end supply chain to run in a coordinated and efficient way, the left hand must always know what the right hand is doing.

The best supply chain directors believe in integration in its purest form and always strive to go beyond their own expertise by inspiring and influencing others. For drastic change like adopting an integrated whole business approach to supply chain management to be embraced, it must be driven from the top down.

Rather than simply direct staff to do things differently from now on, the leadership team must be seen to embrace the change themselves. A good supply chain director will

people from various ethnic, cultural and religious backgrounds and respect their different beliefs. systems thinker: A world-class supply •chainBe aleader has the ability to go beyond their own area of responsibility and think about the bigger picture. So while they are responsible for ensuring the company has the capacity and capability to buy, move and sell goods efficiently and effectively, they should also have a broad understanding of the other key functions of the business like marketing, IT, HR, buying and financial control. Thus one can leverage and support those other functions and ensure each department understands, appreciates and supports what the others are doing. Like a puzzle, each piece must connect to the other to complete the picture.

Be inspirational and influential: A top •supply chain director will have the ability and the charisma to inspire and influence everyone from the CEO and their senior management colleagues to their staff so that everyone in the organisation will not only see the need to work towards an integrated endto-end supply chain, they will want to. technology savvy: This doesn’t mean •theyBeneed to be a ‘tech head’. They should simply be aware of the various systems and technology platforms available to drive greater efficiencies across the chain. strong business acumen: A world•classHavesupply chain leader understands what the company needs to do to create a more profitable and sustainable future. They understand the need to constantly analyse and measure the numbers and have the nimbleness to make changes swiftly when the numbers aren’t where they should be.

At the end of the day the number one rule in driving an integrated end-to-end (cash to cash) supply chain is to bust the silo mentality and work collaboratively towards a prosperous future for the company as a whole.

Logistics News ME | July 2015 | 55

CONTRACT LOGISTICS

Hellmann Contract Logistics, Hisense, strike partnership The recent logistics partnership between the Logistics Services Provider and the major Chinese original equipment manufacturer is steadily evolving and blossoming as both entities see compatibility and efficacy in a mutually beneficial relationship. Logistics News Middle East speaks to the two top officials from both firms.

56 | Logistics News ME | July 2015

CONTRACT LOGISTICS

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arly this year, after a rigourous and intense vetting process, the near 50 year old, Chinese multinational white goods and electronics manufacturer Hisense, sealed a deal to commence a new logistics partnership with Hellmann Contract Logistics for the company’s Middle East operations. It was a tall order and Hellmann pulled out all stops to ensure it was the partner of choice for a professional and demanding client.

Hisense began operations in the Middle East in 2011 and the brand has enjoyed considerable success in the region since its inception.

Following the awarding of the deal in January 2015, Hellmann fully and deftly managed the project of moving from Hisense’s previous 3PL provider, providing comprehensive transportation

solutions for the stock transfer and taking over the logistics operations completely.

So what clinched the Hisense deal for Hellmann? Simon Reah, Contract Logistics Director, Middle East, Hellmann Worldwide Logistics, is upbeat and excited about winning this new prestigious, high-value client.

“Whilst Hellmann provides cost effective and best-in-class warehouse solutions to its customers, I believe the personal touch was a key factor in Hellmann being awarded this new business,” he explained.

Hisense had been talking with Hellmann for several months. Initial relationships were developed with Hisense through Hellmann’s sales team and as the relationship developed further key heads within the LSP were introduced into the sales process.

“I strongly believe that Hisense felt Hellmann had genuine interest in its business and how we could work with them to develop a more efficient supply chain solution within the Middle East,” affirmed Reah as he elaborated on the selection process.

“With key department heads supporting this sales activity I believe Hisense had a belief that we would deliver exactly what we promised and ultimately deliver in line with our company slogan ‘Making it Work Better Everyday’,” he further added.

Simon Reah spoke exclusively to Logistics News Middle East in the aftermath of gaining this vital client to get the low down on the pact and a range of other issues.

What do your responsibilities in your current position entail?

I am currently responsible for leading the

Contract Logistics business within Hellmann Worldwide Logistics across the Middle East. My responsibility entails commercially and operationally driving the product and also developing customised solutions, driving continuous improvement, and most of all ensuring service excellence to all current and future customers.

What are Hellmann Contract Logistics’ strengths, USPs and specialties in this region?

Hellmann is a family owned business with a strong focus on entrepreneurship. With this come innovative ideas and solutions, along with a streamlined organisational structure which enables key decisions to be made quickly and easily. Our non-asset strategy supports us to be more flexible and adapt to market changes and individual customer requirements.

In the local market, Hellmann is perceived as a strong player in the automotive business.

Additionally, we also have extensive regional experience in healthcare, chemical, hi-tech and perishables to name a few.

To ensure we share best practices from around the world, Hellmann Dubai has established a Competence Centre to support the region. Here we technically support all regional countries with activities such as solution design, re-engineering or new customer implementations.

How significant is the Contract Logistics division for Hellmann Worldwide Logistics?

Hellmann started off as a transactional freight forwarding business and subsequently migrated very quickly into a fully integrated solutions provider with market leadership in several verticals. Today Hellmann operates over 1.4 Logistics News ME | July 2015 | 57

CONTRACT LOGISTICS

were reached, Hellmann and Hisense had formed a strong business relationship. Hisense has clear key contacts with Hellmann, with whom it liaises on a day to day basis and clear defined escalation points when required. Regular monthly operational meetings are held to discuss operational challenges along with ideas on where and how the business and relationship could be improved.

Hellmann staff are trained on continuous improvement techniques through our Model Logistics Centre and this culture of improvement is already evident in Hisense warehouse operations.

million square feet of warehousing in the UAE alone. I think this tells a story about how significant we see this product within Hellmann.

We also have an ambitious plan to develop this product and drive growth within the region.

Briefly, what does the partnership involve? What are your responsibilities and commitments to Hisense?

We are currently managing inbound customs clearance, warehousing pick and pack operations, delivery documentation preparation, customs clearance and outbound distribution for the region.

To support and ensure Hisense can continue market penetration it was key that Hellmann provided them with a high range of flexibility. As part of the service level agreement we have defined Key Performance Indicators (KPIs) that support the speed to market approach Hisense were looking for.

What is the range of services Hellmann Contract Logistics offers Hisense?

We offer fully managed warehousing services.

This includes the full handling of the finished goods items along with managing the spare parts business unit.

Hellmann also offers include Serial Number scanning along with full inventory control using Hellmann Warehouse Management System. As part of the WMS service, Hellmann provide Hisense with on-line visibility of stocks supporting with demand planning and ensuring 58 | Logistics News ME | July 2015

Simon Reah • Contract Logistics Director, Middle East, Hellmann Worldwide Logistics • Joined Hellmann in August 2014 • Have been in the Middle East for over 6.5 years • A keen football fan and a follower of Liverpool FC

they can manage an optimum level of stock at all times.

How would you characterise your partnership with Hisense? How has the relationship fared thus far?

I believe that even before contractual agreements

What is your assessment of the state of the GCC and wider Middle East logistics sector and Kuwait, Bahrain and the UAE specifically in terms of business opportunities, potential and future growth for Hellmann Contract Logistics?

Overall I believe the region is performing at an average level. There are still key opportunities within the market to develop but I believe the influx of business into the region is showing signs of slowing down. As an example we are recently seeing a slowdown in the retail market which directly has an impact on the logistics business with fewer goods flowing in and out of the region. The impact of the Russian currency and the oil prices is there for all to see.

Taking the above into consideration I still see huge opportunities within the region for improvement, especially within Contract Logistics. There are still many examples of the traditional ‘trading house’ operations where companies on sitting on huge stock piles and tying up working capital. I see extensive opportunities for logistics companies to use our core competency and add value to these types of organisations by supporting them in inventory control, process design, efficiencies and measurement techniques.

Even in a situation where economic slowdown is becoming more and more evident, Hellmann sees more companies putting emphasis on logistics activities and this is where we see we can continue to add value using our tools and global expertise that is available locally. On top of this with have the Iran factor to consider which has the potential to compensate for the slowdown it may experience in the region and thus add a huge boost to the Dubai logistics hub concept.

Where do you expect future growth to come from?

Hellmann has proven credentials in automotive and healthcare logistics. We are currently focusing to create similar solutions in fashion, perishables and in the chemicals business.

Whilst continuing to develop our vertical solutions, Hellmann is not holding back in taking our tried and successful operating models to other key markets in the region such as Saudi Arabia and Kuwait. Many countries in the region

CONTRACT LOGISTICS

offer huge opportunity for growth and Hellmann will continue to penetrate this potential.

support us in developing our own internal process and procedures along with assisting us with key expertise in areas specific to the Middle East region.

How has Hellmann Contract Logistics fared in the region during 2014, H1-2015 and what are your expectations for the remainder of the year?

Hellmann has shown revenue growth of over 20% in 2014 and have similar forecasted plans for 2015. First year so far has been in line with expectation and the current trends show we are all set to achieve our objectives for the year.

What is your wider vision for the future?

I would like to see Hellmann develop further into the fashion and retail business. Having previously been involved with a large UK high street retailer I see huge opportunity for Hellmann to create specialised solutions in the retail business.

Hellmann has always been at the fore front of creating innovative partnerships and we will continue to create business models in various industry verticals that will add value to our customers.

Frank Lee is the Logistics Manager for Hisense in the Middle East. His core responsibilities include management of the full supply chain and procurement planning.

The following are excerpts from the interview with Frank Lee. What is the range of Hisense products available in the region?

Hisense offers a range of products from air conditioning units, to state-of-the art TVs, home appliances and mobile phones. Hisense products can be found in all of the major retailers within the Middle East. Hisense TVs are currently ranked as number four in the UAE market for market share. This clearly demonstrates the quality, value and reliability of Hisense products.

How significant is the Middle East for Hisense?

For all retailers, the Middle East is a region that cannot be ignored. The number of retail outlets that are available in the region and the culture of socialising in the malls really means this region is a prime location for a brand such as Hisense.

We regularly participate in Gitex and other market events to continually develop our brand awareness. We are also active with our marketing campaigns to develop our brand awareness and this has resulted in sponsorship agreements such as having the Hisense brand on the Red Bull Formula One Car and Schalke 04 Football Shirt.

How important are streamlined logistics processes and systems for Hisense?

Without logistics services, our products cannot

How has the partnership been faring thus far?

So far so good. Hellmann has helped us to increase our level of stock accuracy and has provided visibility of our stocks via an on-line portal. By having this competent logistics provider in place we have been able to focus on developing our sales in the region.

Frank Lee Logistics Manager, Hisense Middle East • Arrived in the Middle East in May 2012 • Originally from Qingdao, China • Worked with Hisense since 2000, commenced in Qingdao and then moved to Dubai • Worked for a logistics services provide for 4 years prior to joining Hisense.

Going forward, do you plan to expand this partnership?

We started our relationship by awarding Hellmann with our Contract Logistics business.

Within three months of our relationship we have partnered with Hellmann for inbound and outbound sea freight, regional outbound land freight. Hellmann also manages our inbound clearance and delivery to distribution centre within Dubai and is currently supporting us with end customer delivery in Kuwait.

All services provided by Hellmann have been of professional high standards and Hisense already sees the benefits of these service levels and plan to continue using them.

be delivered to the end users. It is essential that we can provide our products to all of our outlets and customers and to do that we need a service provider that can add value to our supply chain.

The retail business is a demanding market sector where the inability to supply goods on time quite often results in a lost sale. Hisense needs a reliable, flexible logistics provider who has well defined process and structure. We have found this with Hellmann.

Our logistics partner is very important to us and they must align with our brand values and brand image and represent the brand in a professional manner at all times.

How has Hisense fared (in sales terms) since the commencement of its operations and what potential do you foresee for the brand in the region?

As mentioned the Hisense brand entered the Middle East market in 2011. Since our first items sold back in 2011 we are extremely happy with our market growth until 2014. To date we have achieved over 300% growth in sales. So far in 2015 we are showing trends of 60% growth compared to 2014 and we hope for the remainder of the year we can increase this growth further.

For our TV products we have a belief and desire that we can increase our market share and continually challenge our competitors in terms of sales and innovation.

Why did Hisense award Hellmann their contract logistics? What were the considerations and expectations?

Hellmann proved themselves during our negotiations and gained our trust that they would deliver exactly what they say they would. We also appreciated the fact that senior members of the Hellmann management team were part of the negotiation process and these are still the same management team that we are now working with on a daily basis.

Hisense need a flexible logistics provider and Hellmann has proved from an early stage in our relationship that it is prepared to support our needs; even if sometimes at very short notice.

We believed in discussions with Hellmann that expertise in the logistics market would help to

What are Hisense’s growth plans for the region?

By 2020 Hisense has a target to achieve sales revenue of US $200 million. We plan to attain this by increasing our market share in the TV sector and also wish to increase our brand awareness and sales in the home appliance, mobile phone and air conditioning sectors.

In line with Expo 2020 and the exciting developments planned for Dubai and the Middle Eastern regions, we see many opportunities to further develop our brand awareness and penetrate the market.

Hisense is continuing to study the latest technologies and is regularly working using innovation to develop the next market leading product which we hope will support our 2020 strategy.

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D R Y P O RT S / I N L A N D LO G I S T I C S T E R M I N A L S ( I LT S )

MAKING THE CASE FOR DRY PORTS AND ILTS

The oxymoronic dry port (sometimes inland port or Inland Logistics Terminal) is a proxy, long-way-fromthe-coast location directly connected by road or preferably rail or to a seaport and operating as a centre for the trans-shipment of sea cargo to inland destinations.

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eaports are located on the coast, by the sea. However, if the importer or exporter is inland, in the interior far away from sea port, or if a country is land-locked, it will be inconvenient to co-ordinate movements and handle the goods properly. So many governments have initiated and readily embraced the concept of inland depots, also called dry ports or CFS (Container Freight Stations) suitably located inland far away from the sea to handle export and import formalities under customs supervision.

The cargo is moved by rail or road from the sea port to CFS. In addition to their role in cargo transshipment, dry ports also include facilities for storage and consolidation of goods, maintenance for road or rail cargo carriers and customs clearance services. The location of these facilities at a dry port eases the movement of containers and relieves the pressure and competition for storage and customs space at the seaport itself.

Examples of dry ports in the MENA region include the better known and long-established Riyadh (Kingdom of Saudi Arabia) inland container terminal and lesser-known Algiers and Oran in Algeria.

Buoyed by this idea, Ojas Wadivkar, Partner at A.T. Kearney Middle East, Energy and Process Industries Practice made a presentation on ‘Dry Ports – Best Practices, Success Factors and Lessons Learned’ and sat on one of the panel discussions at the recent 7th GPCA (Gulf Petrochemicals and Chemicals Association) Supply Chain Conference 2015 in Dubai, UAE where his speech focused mainly on his advocacy of dry docks / ports as transport conduits for the region’s booming energy and petrochemicals industry. Other panelists included Dr. Alaa A Nassif, Chief Executive Officer, Royal Commission for Jubail and Yanbu (RCJY), at the Red Sea port city of Yanbu, Kingdom of Saudi Arabia; Dirk Van Den Bosch, Vice President Trade and Development, DP World; Marcus Meissner, Managing Partner, Camelot and Edwin Lammers, Executive Commercial Manager, Sohar Port and Freezone in the Sultanate of Oman.

Logistics News Middle East met jointly and exclusively with Ojas Wadivkar and Markus Gottschalk, Manager, A.T. Kearney at their offic-

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INLAND CONTAINER TERMINAL

es to get the low down, first-hand on this concept. “Marcus Gottschalk and I work closely together with GPCA on strategy and operational aspects related to the developing this Dry Port programme which essentially constitutes the backbone of the industry,” remarked Ojas as he set the tone of the discussions. “Within that framework there are the hard and soft components—the hard element is the construction and infrastructure while the soft constituent is the technology and software associated with the project,” he added.

Elaborating the concept, Ojas commented that dry ports performed the same functions as the conventional, wet ports—only at a different location. “There are several advantages to dry ports,” he said as he enumerated the benefits. “It serves to decongest the wet port freeing it up to do only

its required and intended point-of-origin transactions. It thus helps to de-stress and ease up pressure on the wet ports in its operations as well as the facilities including customs, inspection, bonded warehouses, storage and clearance functions,” he added.

The ease of operations will also lessen clearance costs and demurrage penalties incurred for consignment overstay. He also noted that as a consequence of moving operations, there will be no pressure to seek or expand premium land around the wet ports or to seek investments to ramp up existing operations simply because of now lesser work there.

The key to the development and efficacy of the dry port is the facilitation of a good, reliable rail network emanating out of and into the wet ports to and from the inland logistics terminal.

D R Y P O RT S / I N L A N D LO G I S T I C S T E R M I N A L S ( I LT S )

400,000 The amount of TEUs moved by Riyadh Inland Container Terminal annually

“The oxymoronic dry port (sometimes inland port or Inland Logistics Terminal) is a proxy, long-way-fromthe-coast location directly connected by road or preferably rail or to a seaport and operating as a centre for the transshipment of sea cargo to inland destinations.”

Rail enjoys many advantages over road transport—including security, reliability, taking hundreds of trucks off the highways which then would lessen pollution and make roads safer, enforce traffic regulations, facilitate ease of connectivity and streamline movements.

According to Ojas, certain conditions must be met to justify dry ports. These include the presence of a large conurbations, large inland metropolises—in other words a large hinterland with large populations and with limited access to the wet port. Similarly, for the smooth functioning of the dry ports, they must have dependable rail connectivity (bonded transport); container storage areas and warehouses for inbound and outbound cargo; bays and areas for loading and unloading; customs processing areas and a good road network to then take containers to

their intended destinations. This goes for both the import and export trade as dry ports like their wet counterparts are also transshipment points.

Ojas hastened to add that dry ports was not a new idea—it has been operating for decades.

For example the Riyadh Inland Container Terminal in the heart of the Saudi Arabian Capital has an area of 1 sq. km and has been operating now for over 30 years. The dry port moves 400,000 TEUs annually.

This depot is now reached its maximum capacity and plans are afoot to build a second dry port in Riyadh with a capacity double of this existing one.

According to Ojas, it is important to get the backing and participation of Governments with their authority and financial power to develop dry ports, which calls for large investments. In fact Governments have stepped up to the plate and showed considerable interest. “Saudi Arabia in fact is considering the creation of a new Inland container terminal to serve its vast northern provinces of Tabuk, Ha’il, Jawf, Madinah and Qassim. Some other GCC and Middle Eastern states are also expected to follow suit—a testimony to the appeal and benefits of the dry port,” he concluded.

Ojas Wadivkar Partner at A.T. Kearney Middle East, Energy and Process Industries Practice (EPI) Ojas Wadivkar is a Partner at A.T. Kearney and is a senior member of the Energy and Process Industries Practice (EPI). He has consulted for more than 12 years. He started his management consulting career in Chicago and has now spent more than 4 years dedicated to clients in the GCC. Wadivkar spent the first half of his A.T. Kearney career in North America and the latter half in the Middle East. Since having moved to the region on the ‘global mobility’ program he has held leadership roles on all key EPI accounts within the region with petrochemical and oil and gas companies. He has worked on a broad range of topics including operations improvement, supply chain, procurement, large scale transformation and organisational design.

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TACTICAL COOPERATION

Rockwell Automation, Cisco in strategic alliance Cisco and Rockwell Automation will pool resources to provide best-in-class solutions for IT and OT with demonstrable customer results.

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ockwell Automation together with its strategic alliance partner Cisco has pledged to drive the digitisation of organisations in the Gulf region by focusing on The Connected Enterprise.

The Connected Enterprise is the prerequisite of any Smart manufacturing initiative – linking connectivity inherent within the assets of the plant. It helps operations managers profitably manage and improve manufacturing and industrial processes and IT executives reduce network complexities and exposure to cyber security risks. Moreover, it shares productivity-improving information to workers across the organisation in a context that is meaningful for each role.

UAE based David Bell, Consulting Solution Architect, Cisco Industry Solution Group affirmed: “Cisco and Rockwell Automation have a long history of successfully delivering increased productivity and efficiency for their customers through the creation and delivery of converged Information Technology (IT) and Operation Technology (OT) architectures.”

As companies enter the ‘Internet of Things’ era, where data, things, people and processes will all be connected, exponential growth of interconnected IT and industrial devices, the requirement for a secure, reliable and scalable Connected Enterprise architecture is even more critical.

In the UAE, increased competition and the rapid technology growth requires many businesses to look at how they can innovate and improve their operations, productivity and also how they interact with their customers.

Through deploying Connected Enterprise architecture, organisations are able to use cloud solutions, applications and data analytics to gain new insight into their operations and position themselves for the future.

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Neil Enright, Rockwell Automation Middle East and David Bell Cisco Industry Solution Group.

Manufacturing and IT convergence, and help enable successful architecture deployment and efficient operations.

This will allow their critical resources to focus on increasing innovation and productivity. Several products such as Stratix 5700, Stratix 8000, and other industrial switches along with Converged Plantwide Ethernet Solution Architectures were among the products that were showcased at the booth.

Neil Enright, Regional Sales Director, Rockwell Automation Middle East stated “The partnership with Cisco brings great value to customers as we help them improve their business performance by bridging the technical

and cultural gaps between plant-floor and high-level information systems.”

The Connected Enterprise is a convergence of information technology (IT) and operational technology (OT) in a simplified network architecture using EtherNet / IP that will help customers to lower their total cost of ownership, improve operational responsiveness, reduce time to market and protect critical manufacturing.

Rockwell Automation also presented the concept of securing The Connected Enterprise to help industrial firms better understand potential security risks and that making a secure connection is imperative.

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