Out of the box
Demand for cold chain is rising in the Middle East
High-quality warehouses remain the first choice for occupiers
The roadmap to Saudi Arabiaâ€™s Vision 2030
Connecting trade professionals with industry intelligence
Amazon takes over Souq.com and puts the wheels in motion for a new era of e-commerce in the Middle East
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8 | News 16 | Op-ed A focus on Dubai emerging as the gateway to Africaâ€™s logistics sector
Features 20 | Cover Story: Amazon-Souq takeover What does the future hold for both the companies in the region? 24 | Cold Chain Adoption of smart technology has boosted the cold chain sector in the Middle East
32 | Interview Booz Allen Hamilton talks about the benefits of blockchain technology in supply chain
34 | Warehouses The demand for highquality warehouses has risen significantly in the Middle East
38 | Saudi Vision 2030 Is Saudi Arabia on the right track to become a regional logistics hub?
48 | Viewpoint
Transportation spend management is critical for supply chain success
50 | Report How digital solution can help get rid of food wastage problem? 52 | Supplier News 54 | Diary Logistics News ME | May 2017 | 3
n today’s highly competitive market, it is crucial for the companies to come up with innovative solutions to effectively streamline their supply chain solutions. Technology can help to have more control over one’s business and stay ahead of the competition. With the help of modern technologies, a greater visibility for the supply chain is imperative and helps the business to proceed in the right direction. In our May issue, we are looking at cold chain logistics, which is currently witnessing a demand growth due to the adoption of modern technologies. By simplifying the process and getting rid of unnecessary links, one can improve the efficiency of the business and reduce expenditures. By integrating modern technologies into the business plan, the owner can greatly enhance productivity as a company, while cutting costs and improving customer satisfaction and client retention. Another medium, which is effective in streamlining the supply chain, is social media. It is a popular technology that has already swept the world. With social media platforms like Twitter, Facebook, and LinkedIn to name a few, a business can create more open communication with customers, increase the visibility of the company, improve the demand on the products, utilise cost-effective and time-efficient marketing strategies, lower the operational costs, and enhance the company’s overall productivity. Social
media can be used to interact with customers, respond to questions, report accidents or weather conditions that may impede delivery schedules, and create automated updates about the inventory. As the internet and other technologies have become an essential part of the supply chain, the expectations of the customers have undergone a significant change. Today’s companies are increasingly global and complex, with competition growing on every front and acquisitions that change business processes rapidly. Enhancing the supply chain can minimise risk and improve the brand’s reputability in the eyes of the public.
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Re g i on a l N e w s
Regional News An update from around the region
For News, features and more, Visit www.CBNme.com/logistics-news Follow us on twitter for breaking news: @logisticsnewsme Follow us on Facebook for up-to-the-minute breaking news
Ras Al Khaimah government launches new economic zone
he government of Ras Al Khaimah announced the launch of Ras Al Khaimah Economic Zone (RAKEZ), an authority established to oversee, regulate, and consolidate the services, facilities, and zones of Ras Al Khaimah Free Trade Zone (RAK FTZ) and RAK Investment Authority (RAKIA). RAKEZ is now one of the largest economic zones in the region, covering about 3,300ha of land and housing over 13,000 companies, currently served by RAK FTZ and RAKIA. The two free zones started their collaboration in 2016 by combining their boards and management teams, led by HH Sheikh Ahmed bin Saqr Al Qasimi as chairman and Ramy Jallad as group CEO. This was followed by the unification of the back-office functions of both entities in order to streamline their activities and boost service delivery to clients. RAKEZ offers both existing clients and prospective investors a platform in Ras Al Khaimah, from which they can access local, regional, and global markets. As a comprehensive investment destination, the new entity presents a wide range of premium customisable facilities, enhanced levels of service, and five diversified and strategically located zones for all types of business setups, including start-ups, entrepreneurs, 8 | Logistics News ME | May 2017
SMEs, and manufacturers, all within the unique and cost-effective environment of Ras Al Khaimah. Commenting on the announcement, HH Sheikh Ahmed bin Saqr Al Qasimi, chairman of RAKEZ, RAK FTZ and RAKIA, said: “The formation of RAKEZ marks an important milestone for the free zone landscape in Ras Al Khaimah. We have worked very hard to establish a new authority that will drive the emirate’s development by diversifying its offerings to attract a broad client base and grow the number of investors. It is our firm belief that after nearly two decades of operating independently, the time is right to leverage the combined resources of RAK FTZ and RAKIA under one strong, unified brand. We are confident that, with RAKEZ, we will start an exciting journey that will help achieve our vision for Ras Al Khaimah to become a leading global investment
destination that is better able to serve our clients.” Ramy Jallad, group CEO of RAKEZ, RAK FTZ and RAKIA, said: “Bringing together RAK FTZ and RAKIA under the umbrella of RAKEZ is the first step towards taking our customer experience to the next level. It underlines our commitment to provide exceptional service delivery, simplified processes, and costeffective solutions. “Indeed, it is only natural for entities with the scale, scope, and knowhow of RAK FTZ and RAKIA to come together. We are very pleased that this collaboration has the full support of the RAK government and leadership. All government and private stakeholders are fully supportive of the launch of RAKEZ and have been cooperating with us in an effort to provide a seamless service to our clients, and to ensure that their businesses continue as usual.”
We have seen a considerable rise in the demand with its wideranging products and services in warehousing, transportation, and freight forwarding for clients in different sectors.” Ignatius Scholtz, Head of Operations of Integrated National Logistics (INL)
Centre Point Logistics opens AED60mn warehouse in Dubai South Dubai-based Centre Point Logistics (CPL) announced the commencement of operations of its newly built AED60mn warehouse at Dubai Logistics City in Dubai South. The 22,549 sqm warehouse further consolidates CPL’s foothold in AED86bn logistics market of the UAE in overall GCC market of worth AED171mn. Establishing the warehouse at the Logistics Corridor in Dubai South enables CPL to leverage proximity to Expo 2020 site, Dubai’s Jebel Ali Port, the Al Maktoum International Airport, which gives the company an edge in terms of time saving and significant reduction in operational costs for its clients. Oliver Pesov, deputy general manager of CPL, commented: “Our new warehouse facility has been built based on our study of local and international market requirements from every angle. We are fully LEED certified logistics provider. We are also in discussion with suitable solar energy contractors who are checking the possibilities of installing solar panels on the rooftop of the warehouse in order to reduce or avoid the consumption of traditional electricity. Operationally, the facility can be single or multiuser, supporting indoor and outdoor storage as well as dedicated area for value-added services like, labelling, packing, re-packing, and allied services.”
CPL, with its open architecture model, currently operates from several locations in the UAE, including, CPL’s logistics hub in Jebel Ali Free Zone, spanning over 44,000 sqm; an existing logistics hub in Dubai South, spanning over 83,000 sqm; and a storage facility in Hamriyah Free zone in Sharjah, spanning over 30,000 sqm. All three facilities are providing storage, handling, and value added services (VAS) to the logistics and supply chain customers. Oliver added: “The new facility
consolidates CPL’s foothold in the UAE logistics market, a reliable partner for Al Maktoum International Airport and Expo 2020 customers. It reinforces company’s commitment to its customers for providing the quality services.” Outside the UAE, the company acquired 50,000 sqm logistics facility at Sohar Port and Freezone in Oman two years ago. CPL considered it a milestone because it gives wider access to the GCC market, including Saudi Arabia, which has a road link to Sohar Port.
Dubai-based global marine operator, DP World, said it has reached an agreement with the Port of Fujairah to terminate its concession deal, signed in 2005 to operate the Emirati Port, reported The National.
Provider of construction, repair, and refit services for naval, military, and commercial vessels, Abu Dhabi Ship Building (ADSB), handed over a 64m military landing and highspeed protection vessel to the Defence Ministry of Kuwait.
One of the leading providers of integrated logistics, Agility, said that it will be developing 90ha of warehousing spaces on the existing land under management in Kuwait. The development is expected to be over a period of three years.
Integrated logistics and marine services provider, GAC, said its Russian unit has marked an important milestone with its handling of the first LNG carrier designed to withstand harsh Arctic conditions at the Russian ports. Logistics News ME | May 2017 | 9
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Siemens to set up global logistics headquarters at Expo 2020 site Germany-based Siemens AG will set up its global headquarters for airports, cargo, and ports logistics in Dubai at the Expo 2020 site as the future location for its business after the next World Expo ends in April 2021. The decision of the German company to locate some of its key businesses to the 4.38 sqkm Dubai South site will capitalise on the industrial and logistics developments in the emirate. It is seen as a major vote of confidence for Expo’s legacy strategy, aimed at ensuring its site becomes a blossoming district for businesses, residents, and tourists alike after the Expo closes. Expo management anticipates that more companies will follow Siemens’ example, bringing new jobs and business to the developing area in Dubai South. Siemens will make use of the existing infrastructure that is already being put in place on the site and use the permanent buildings of Expo 2020 Dubai as the new home for its future global logistics headquarters. The new global HQ will include bases for Siemens’ airports, cargo infrastructure, and ports teams. All levels of value addition will be represented in Dubai including global management and strategy, research and development, innovation, software development, sales, assembly, and production. Additionally, Expo 2020 Dubai announced that Siemens is to become a premier partner for intelligent infrastructure and operations, providing a wide range of innovative solutions, technologies and products to help plan, build and operate an Expo that will continue to make a meaningful impact well beyond its closure. 10 | Logistics News ME | May 2017
Under the partnership, Siemens will also provide smart solutions for Expo 2020 technical and site operations and implement MindSphere, an open operating system for the Internet of Things (IoT). MindSphere will initially be utilised for optimisation of energy management and building management across the more than 200ha gated site. MindSphere will enable the Expo, Siemens and other partners, small and medium enterprises (SMEs), and universities in the wider Expo ecosystem to make best use of the data received. Inspired by Dubai’s Vision 2021 and the Expo 2020 themes, the two parties will also promote the use of MindSphere outside the Expo as well as for the 200-plus participants at Expo 2020 Dubai. HH Sheikh Ahmed bin Saeed Al Maktoum, chairman of the Expo 2020 Dubai Higher Committee, said: “The decision by Siemens to set up its global headquarters for logistics in Dubai is a vote of confidence for the strong viable legacy plan for the Expo 2020 site and also confirms the global role that Dubai plays
as an international hub for business, logistics, aviation, and maritime industries.” Siemens’ chief executive officer, Joe Kaeser, said: “Siemens has a long history in Expo partnerships and we are delighted to be a premier partner for intelligent infrastructure and operations leveraging our open IoT operating system Mindsphere for Expo 2020 Dubai and beyond. “Through this collaboration, we look forward to supporting Dubai’s sustainable development goals with our innovative solutions helping bring the emirate closer to its ambition of becoming one of the world’s smartest cities.” On setting up the global logistics headquarters in Dubai, Siemens’ managing board member and chief technology officer, Roland Busch, added: “This strategic decision highlights Dubai’s significance as a major player in global transport and logistics, with some of the world’s biggest airlines and ports operating in and around the emirate. “Siemens wants to further expand its operations in order to be close to key customers and
markets. The Expo site will be a perfect match, featuring state-ofthe-art facilities, infrastructure, and technology, coupled with enviable transport connections. “We are committed to contributing to Dubai’s economic development goals with the latest innovations in technology using digitalisation to support growth and boost efficiencies in logistics.” Expo 2020 Dubai’s senior vice president of legacy development and impact, Marjan Faraidooni, added: “From the start of our planning, having won the bid to stage Expo 2020 four years ago, we had the future life of the site at the heart of all our thinking. We don’t just envision an empowering and impactful Expo in 2020-21 that will leave a lasting legacy in its own right. We wish to create a future ecosystem for business and individuals alike in Dubai South that will emerge as a global hub of inspiration and activity after Expo closes in 2021. “Siemens’ important strategic decision today is a very important step on that journey – we look forward to other companies of all sizes following them.” www.cbnme.com
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DHL Express launches direct Bahrain-Jeddah flight
DHL Express has launched a new daily flight connecting Bahrain with Jeddah, one of its gateways in Saudi Arabia’s Western region. The new route will see DHL Express fly seven times a week between Bahrain International Airport and Jeddah’s King Abdulaziz International Airport, with each Boeing 757 flight carrying up to 22 tons of cargo. DHL becomes the first express provider to offer direct movement and clearance of non-document goods between Bahrain and Jeddah, reducing transit times by anywhere from 24 to 48 hours, for customers shipping to Saudi Arabia’s Western Provinces. Nour Suliman, CEO, DHL Express Middle East and North Africa (MENA), said: “Bahrain forms a key node connecting Middle Eastern countries like Saudi Arabia to other markets like China and the European Union, where air freight volumes have grown by more than 50% since 2011. This new route has allowed us to reintroduce Worldwide Parcel Express services after eight years, at a time when e-commerce and growing regional affluence are causing demand for cross-border consumer shipments to literally soar.” This brings the total number of flights into Saudi Arabia up to 21 per week, with the Bahrain-Jeddah connection further enhancing the transit time at Saudi Arabia’s main express gateway in Riyadh. The new connection allows DHL customers to order pickup of non-document shipments as late as 5pm for same day dispatch, with DHL handling all package movement and clearance from the point of pickup. The route also supports growing volumes of repaired and returned goods between Saudi Arabia and producers in the UAE, USA, and the European Union, primarily in the energy, technology, and life science sectors. Bachi Spiga, head of operations MENA, DHL Express, said: “Imports and exports to and from Saudi Arabia have been increasing in the past few years and show no signs of cooling off, particularly with the US and within the MENA region. This new route will provide much-needed delivery capacity and agility not only to Jeddah and the Western Provinces but also indirectly to the many other Gulf states for which Saudi Arabia acts as a trade hub.” Faysal El Hajjami, country general manager, Saudi Arabia, DHL Express, said: “This investment is timely and supports Saudi Arabia’s transformational blueprint known as Vision 2030, of which one of its pillars is to transform the strategic location of the Kingdom into a global hub connecting three continents, Asia, Europe and Africa; and turning the Kingdom into an epicenter of trade and logistics, and a gateway to the world.”
12 | Logistics News ME | May 2017
Topaz Energy and Marine announces senior appointments
Offshore support vessel company, Topaz Energy and Marine, announced the appointments of Martin Helweg as chief operating officer (COO) and Hicham Hachkal as human resources director as well as the appointment of Robert Desai as chief commercial officer. Helweg takes over the role of COO from Geoffrey Taylor, who retired after four years of service with Topaz. Helweg joins Topaz from Svitzer, with almost 20 years of experience in finance and leadership roles in the shipping and oil and gas industries, spanning across the Americas, Middle East, and Asia. Hachkal has been appointed as the HR director, and replaces Ealbra Moradkhan, who left the company to pursue new challenges after ten years at Topaz. He brings 20 years of experience mainly in oil and gas companies related to HR strategy, talent development, personnel management, and supporting organisations through economic cycles. René Kofod-Olsen,
CEO, Topaz Energy and Marine said: “I am pleased to welcome this new talent to our executive leadership team. These appointments reflect our commitment to two core aspects of our business: operational efficiency and our people. With their help, I look forward to continuing to build on our healthy business profile, strengthen relationships with key customers, partners, and business groups while maintaining our position as a market leader in OSV. “I would like to extend my sincere appreciation to Taylor and Moradkhan, who were both key pillars in making Topaz what it is today. We wish them fair winds in their new endeavours.” Topaz fortifies its leadership team on the back of important contract wins in 2016 with BP Azerbaijan and TCO in Kazakhstan, adding significantly to its industry leading $1.5bn backlog, further improving Topaz’s earnings visibility and credit strength. www.cbnme.com
The big Picture
In Turkey, the model HA260PX by Francebased Haulotte Group has been used for the installation of 18 units of RTG cranes in DP World Yarimca Port. The new terminal is one of the biggest container terminals in Turkey with 1.3 million TEU capacity and is located in Körfez district of Kocaeli province in Turkey. Training
Abu Dhabi Ports signs MoU with Jaheziya for training courses Abu Dhabi Ports (ADP), the master developer, operator, and manager of the emirate’s commercial and community ports as well as the Khalifa Industrial Zone, has signed a memorandum of understanding (MoU) with Jaheziya to introduce a range of maritime training courses and programmes. The deal was signed by Captain Mohamed Juma Al Shamisi, CEO of ADP, and Jamal Mohamed Al Shamsi, managing director of Jaheziya, at ADP headquarters. The agreement is structured to initiate cooperation between the two companies to work on strategies and introduce a range of courses as well as attracting students and interested parties to enrol in them, said a statement from ADP. To facilitate the achievement of this joint initiative and realise its goals, ADP and Jaheziya will work closely together and actively offer each other advice to maintain a smooth and practical partnership, it said. Following the signing, Al Shamisi
said: “Our strategic partnership with Jaheziya is in line with our organisation’s objectives to form strong productive collaborations with prime entities in the UAE. “Jaheziya has rightfully established itself as a trusted and recognised centre of excellence, offering flexibility to meet all training needs. To ensure a seamless and sustainable success of this partnership, we will deliver all the maritime theory and practical courses and provide all necessary experienced teaching staff to facilitate these courses.”
Recognised and endorsed internationally, and delivered by accredited instructors, courses cover a wide range of vital maritime subjects, such as Musaffah Channel Familiarisation Course, IMO Model Course 1.27 for ECDIS, IMO Model Course 1.07 for Radar/ARPA Operational Level, and the mandatory course for seafarers human element Leadership and Management Course (HELM), mandated by the Manila amendment to STCW. Currently students from Saudi Arabia, Qatar, India, Iraq, and the UAE receive training from ADP Maritime Training Centre. Al Shamsi of Jaheziya, said: “Our company is keen to be a partner with ADP in this venture to attract, engage, and train students on theoretical and practical maritime courses. In order to achieve our common goal, Jaheziya will make all facilities available to ADP to enhance their training proposition and add value to the development of the students from a practical perspective.” Logistics News ME | May 2017 | 13
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Emirates SkyCargo transports Emirates Team New Zealand’s boat
Emirates SkyCargo, the freight division of Emirates, has transported New Zealand Aotearoa – Emirates Team New Zealand’s race boat – from Auckland to Bermuda in advance of the Louis Vuitton America’s Cup sailing competition, which will begin in late May 2017. Emirates SkyCargo transported Emirates Team New Zealand’s race boat and all associated support equipment including the team’s chase boat. In order to facilitate the loading and air transportation process, the high-tech sailing boat had to be disassembled into smaller parts – two hulls, two wings, beams, rudders, and other equipment. During the packaging process, metal frames were used to reinforce the packing to ensure that there would be no damage to the individual components during the transportation process. The packaged components were then trucked from their base to the airport, security screened, and then loaded on the aircraft. It took over four hours for the team to complete the loading process. Emirates SkyCargo’s trained and experienced staff worked closely with the technical staff from Emirates Team New Zealand making sure that the loading went smoothly. Emirates Team New Zealand’s complete shipment weighed slightly over 44 tonnes. At over eight tonnes, the team’s chase boat was the heaviest individual component in the shipment. The largest items in the shipment were the ship’s two hulls which measured over 15 metres each in length. Three ground crew from Emirates Team New Zealand travelled with the equipment onboard the Emirates SkyCargo freighter for the flight which lasted 18 hours and 50 minutes. The flight included a 90-minute stopover in Los Angeles for the aircraft to refuel and change flight crew before continuing its journey to Bermuda. Given the logistical challenges involved in the transport of the boat, Emirates SkyCargo initiated the planning process with Emirates Team New Zealand several months prior to the actual date of the transportation. The teams discussed and worked together over several aspects of the shipment including sharing detailed technical drawings of the broken-down components to arrive at the optimal load plan for the flight.
14 | Logistics News ME | May 2017
KAMCO, Rasmala acquire Amazon UK warehouse
KAMCO Investment Company and Rasmala have acquired Amazon UK Services’ largest distribution warehouse for approximately $76mn. The acquired property is leased to Amazon UK Services with an unexpired term of 15 years expiring in October 2031. The investment will target an annual cash dividend yield of 6.5% per annum, with an expected internal rate of return of 7% upon exit. Commenting on the acquisition, Faisal Sarkhou, CEO of KAMCO, said: “This achievement marks yet another step towards reaching our strategic objectives and future vision to enhance our operational performance and expand our real estate investments platform on a regional and international scale in a way that is beneficial to our shareholders.” KAMCO’s chief investment officer, Khaled Fouad, said: “This transaction highlights the acquisition of a new category of income-generating assets that are leased to quality covenants such as Amazon, with the aim of diversifying sources of income. Reaching a
target of half a billion dollars is not far off given that KAMCO’s alternative investment team currently manages more than $250mn in real estate across 11 regional and international properties.” Zak Hydari, group chief executive of Rasmala, said: “We are delighted to partner with KAMCO on this landmark transaction. Rasmala has extensive experience in acquiring and managing UK real estate in partnership with Gulf based investors. We look forward to working with KAMCO to support their expansion plans.” The property was purposebuilt for Amazon’s services due to its strategic location and proximity to the main transport networks, Edinburgh and Edinburgh Airport, which offers easy access to neighbouring Scottish cities. The property, which extends over an area of more than 9.2ha, is fully automated with conveyor belts moving packages from order receipt to fulfilment to packaging and finally the loading bays. The warehouse also features a 24hour security system. www.cbnme.com
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Arrive and revive
Geoffrey White, CEO of Agility Africa, highlights Dubai as the burgeoning gateway to African opportunities, supporting the rapidly developing trade between the UAE and Africa
ubai is experiencing an exponential growth in trade to Africa. The success of Dubai as a ‘Gateway for Africa’ is being driven by a combination of macroeconomics and the attractiveness of Dubai as a commercial hub. As global corporations review their longterm business strategies, they are increasingly facing a stark dilemma. The traditional markets of the developed world, that have supported and grown their corporations for generations, are being forecast to deliver less growth and fewer opportunities for expansion. This global trend is driven by socio-economic demographics that, in many cases, see their traditional markets satiated and even shrinking due to rapidly aging populations. In an increasing number of countries in the developed world, the low birth rate means populations are now reducing in size. 60% of the world’s population live in countries where one-third of the workforce will retire by 2025, creating smaller and less affluent markets. This brings the real prospect that trade levels in traditional markets will stagnate at best. As a result, global corporations are focusing on seeking new opportunities outside of their traditional markets and increasingly looking at emerging markets to provide the stimulus and expansion possibilities that they have historically seen from the developed world. Majority of the corporations now acknowledge that Africa provides a market that can be a driver of corporate growth. Sub Saharan Africa is increasingly attractive to global business as, in stark contrast to their traditional markets, is a rapidly expanding, burgeoning and emerging market
16 | Logistics News ME | May 2017
that is starting from a very low base, so has a high propensity to consume everything. The economic fundamentals underpinning the growth of the continent are compelling and the momentum of development unstoppable. The IMF forecasts that Africa will be the second fastest growing economic block globally through to 2035. This emerging market growth trajectory is being driven by two significant economic realities, demographics and resources.
The young and expanding African workforce is leaving traditional subsistence lifestyles and migrating to the cities. Between 2015 and 2045, the trend to urbanisation in Africa will add 24 million additional people to live in cities each year, compared with 11 million in India and nine million in China. This population growth and the urbanisation in Africa is driving consumer demand and, by 2025, Africa is predicted to be a $5.6tn dollar market with sub Saharan growth continuing to build at around 4.5% a year. Stimulated by this burgeoning demand, domestic manufacturing output is forecast to rise from $500bn currently to $930bn by 2025. Africa has a young tech savvy generation that is leapfrogging the technology divide from an emerging market and becoming a world leader in the use of technology for society. Africa now has 800 million active mobile phones, (for comparison, the USA has 320 million) being used for banking, payments, trading, downloading information, and education. East Africa now leads the world in mobile banking services and the rapid embracing of new technology by Africa is a clear enabler of growth, development, and prosperity.
Demographics Africa has a young population providing a labour force that is increasingly economically important in an aging world. By 2030, the working-age population in Africa is expected to be 1.1 billion people providing a workforce larger than that of either China or India. An expanding working-age population is directly correlated with gross domestic product (GDP) growth.
Resources Africa’s agricultural resources make its role in the world increasingly important. Sub Saharan Africa contains 60% of the world’s unused, fertile, naturally watered cropland. This resource is essential for food production to be able to meet demand from the two billion people in Africa by 2040 but also to help meet the world’s demand as the global population grows from six billion to nine billion mouths to feed.
Geoffrey White, CEO of Agility Africa
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The agricultural land capacity in Africa is becoming an essential source of cereals and produce in the global food supply chain. This is already being recognised by countries across the GCC that are investing billions of dollars in agricultural projects in the continent. Africa is the origin of the worldâ€™s largest reserves of many basic minerals such as copper, phosphate, iron ore, and precious rare earths important to technology. And as commodity cycles recover, Africa will once again become a significant mineral producer and exporter. The continent has, in the last decade, discovered huge oil and gas resources equivalent to up to 15% of the worldâ€™s total energy reserves. Even at the recent low prices for oil and gas, African production continues to be very cost competitive in global markets. Africa will benefit from an estimated $230bn in foreign direct investment (FDI) to develop its new energy resources and in the coming decade become a significant energy exporter. Dubai: The Gateway to Africa Dubai is becoming increasingly important as a gateway for African trade. This is being driven by a combination of factors that work
18 | Logistics News ME | May 2017
together to make Dubai the logical choice as a commercial and logistics base for doing business in the continent. A pre-requisite for developing trade is accessibility. If it is easy to visit trading partners and customers then trade will prosper. The interconnectivity of Dubai to Africa and Dubai to the world, provided by Emirates, Etihad, Flydubai, Air Arabia, and other airlines, is the fundamental enabler of Dubai as a centre of trade and as a gateway to Africa. This is complimented by the platform that Dubai has created as a centre for trade, with good banking, simple corporate structures, a stable reliable environment, welcoming travel policies, and world-class accommodation and lifestyle. The recently established Ministry of Happiness is an example of the commitment by Dubai to enable a business and lifestyle environment where people wish to visit and trade. The positive environment in Dubai means that an increasing number of corporates are making Dubai their African headquarters and a growing list of African companies are exporting and importing goods via Dubai where they come to meet their international customers and transact business.
From a logistics perspective, the UAE is developing as the efficient point of consolidation and transshipment for Africa. Logistics for a range of major capital projects are now shipped from around the world to the UAE where they are consolidated and transshipped to the project location in Africa. A significant proportion of the growth in Jebel Ali Free Trade Zone and the port is related to FMCG and other cargo for the African markets. A growing proportion of trade that historically came direct from China to Africa is now physically stocked and traded from Dubai to Africa. This trend is being supported by institutions such as the Dubai Chamber of Commerce, with regional offices now open in Mozambique, Kenya, Ghana, and Ethiopia. Dubai-Africa trade is also developing in ecommerce. E-commerce in Africa is nascent currently, but with the continuing spread of the internet and the consumer market dynamics developing across the continent, e-commerce will become a very significant market. There are already 800 million cellphone users in Africa and the continent leads the world in mobile banking services. E-commerce freight consolidation and fulfillment will be a major opportunity for Dubai as much of the deliveries will be via airlift into Africa. Agility Distribution Parks Agility Distribution Parks (ADPs) are Agilityowned and operated warehouse parks in Africa that provide international standard efficient and secure warehouses where the power stays on and the IT is fast and consistent. This network of new distribution parks being developed by Agility in the key markets across Africa enables customers to attract quality staff and develop their businesses without having to make non-core investments in infrastructure. Removing the infrastructure investment costs for international companies accessing the African market reduces their investment risk to enter new African markets. Similarly, by providing quality infrastructure to expanding local companiesâ€™ ADPs, it directly supports the SME sector that are the backbone of growth of the African economy. Quality warehousing in Africa provides essential support infrastructure for the growth of trade into and out of the continent meeting the demand from the increasing number of companies from across the GCC looking for facilities.
www.twintec.ae Contact the Twintec Middle East business team for further information: Tel: +971 (4) 364 1220 Email: email@example.com
C ov e r Sto ry
g i r n e g M ren r u C
The Amazon-Souq acquisition is expected to usher in a new era of e-commerce in the Middle East, which boasts a diverse portfolio of online retailers. Logistics News ME reports 20 | Logistics News ME | May 2017
Russ Grandinetti, Amazon senior vice president, International Consumer and Ronaldo Mouchawar, CEO and co-founder SOUQ.com
he rise in the usage of smartphones and handheld devices have increased the e-commerce trend in the Middle East significantly. More people are shopping online and the e-commerce trend is slowly changing the ways we interact with brands. Dubai-based online retailer, Souq.com, was considered to be one of the flagbearers of the e-commerce growth spurt when it was started in 2005 by Ronaldo Mouchawar alongside Jabbar Internet Group’s Samih Toukan and Hussam Khoury. When it was initially launched, it was categorised as an auction site that was linked to the Arab internet portal, Maktoob. In August 2009, Maktoob was acquired by Yahoo, which eventually led to Souq.com being spun off as a part of Jabbar Internet Group. Early 2011 saw Souq. com revolutionise its business model and emerge as an e-commerce marketplace with a fixed price model. It finally launched its retail division in late 2011 and since then there has been no looking back, according to Mouchawar.
In an exclusive interview with Logistics News ME, he continued: “The inspiration for the brand’s name literally translates to the marketplace in Arabic and simply put, it is what our brand is in its true essence. Over the last 12 years, we have remained committed to our vision of connecting people with innovative products, amazing deals, and ground-breaking technology.” On March 28 this year, global e-commerce giant, Amazon, finally decided to acquire Souq.com for an undisclosed amount in order to gain an entry into the thriving Middle East market. The retailer had its eyes on the market for quite some time and finally announced the big move towards sealing its footprint in the high-growth territory. In an exclusive with Logistics News ME, Teal Pennebaker, Amazon spokesperson, mentioned that the retailer had customers in this region for a long time that the company has served from its other global websites. “By acquiring Souq.com, we will be even closer to our customers in the Middle
East and will be able to serve them even better. This is a region we’ve been interested in expanding into for some time, and we’re really happy we found such a great company to partner with in Souq.com.” The US-based retailer, along with India’s Flipkart, entered talks with Souq.com in 2016 in a deal that would have been worth about $1bn, according to Bloomberg. But in January 2017, Amazon and Flipkart walked away from the acquisition talks after disagreeing over price. Discussions between the two re-ignited in March this year, with reports emerging that Amazon was mulling making an offer for entire Souq.com, which originally was looking to sell around 30% of the company. Adel Belcaid, principal at AT. Kearney, explained: “Amazon is known to have done several acquisitions before, but it is also known to be very selective about them and for being fully capable to launch greenfield operations from the grounds up when potential acquisitions targets are not convincing enough.
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C ov e r Sto ry
We chose to go with Amazon because they are a great fit for Souq.com.” Ronaldo Mouchawar, Souq.com
With the arrival of Amazon in the region and the increased e-commerce from traditional retailers, we are confident the e-commerce activity will increase considerably in the region.” Adel Belcaid, A.T. Kearney
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“The fact that Amazon acquired Souq. com is a testament to the quality of the market strategy and execution capability of home-grown start-ups, and is likely to instigate additional venture and corporate capital interest in local start-ups in e-commerce and other sectors of the economy, which is good to take the regional entrepreneurship scene to the next level.” In order to thwart the entry of Amazon in the region, Emaar Malls, the shopping centre unit of Dubai’s largest property developer, Emaar Properties also bid for Souq.com. The retail division of Emaar Properties, run by Mohamed Alabbar, offered about $800mn for Souq.com, which included a convertible deposit of $500mn, according to various media reports. Alabbar is currently heading a $1bn technology investment company formed with other regional investors, and raised $1bn from investors, including Saudi Arabia’s sovereign wealth fund, to create e-commerce firm Noon. But Mouchawar chose to go with Amazon even if the bid was significantly lower than Emaar Malls’, and explained: “We chose to go with Amazon because they are a great fit for Souq.com. I can’t think of a better company to help us continue to grow and provide the best possible service for our customers and sellers. We are guided by many of the same principles as Amazon, and this acquisition is a critical next step in growing our e-commerce presence on behalf of customers across the region. By becoming a part of the Amazon family, we’ll be able to vastly expand our delivery capabilities and customer selection much faster, as well as continue Amazon’s great track record of empowering sellers.” Belcaid believes that the acquisition in itself will not create the opportunity, but will validate it and shed long-due light over it. “The main opportunity lies in the e-commerce, which we have sized and highlighted in our study in 2016. In addition, as Amazon and its local competitors work to launch and develop their e-commerce services, we can be sure to see spill-over developments in the key areas of digital payments, smart distribution, and lastmile logistics, which are all critical ingredients of a successful e-commerce offering. “Secondly, an attractive and diverse product portfolio to draw more customers online is a must. To date, more than 90% of the GCC ecommerce market is in only four product categories, including consumer electronics, fashion, lifestyle, and health and beauty. In contrast, these categories make up half of the US e-commerce market, with categories such as pet care, toys and games, food and drink, home improvement and gardening, and home
furnishings making up the other half. Clearly, there is room for regional online retail expansion. To entice more customers to shop online, retailers must offer a more diverse product selection, capitalising on the long-tail advantage of e-commerce. “Finally, e-commerce players will need to review their distribution strategy (make versus buy), including assessing the need to build new fulfilment and logistics facilities, capitalising on technology, and forging strategic partnerships with logistic providers. They can adopt one or more of these approaches based on their business strategy.” Future ahead Mergers and acquisitions are a way for some companies to improve profits and productivity, while reducing overall expenses. While good for business, in some cases, they are not good for employees. With a merger and acquisition come the requisite lay-offs, leaving many employees worried about their positions or the changing culture of the company. But Pennebaker assured that Amazon absolutely loves the work that Souq.com team has done so far. “Souq.com is still a standalone site. Souq.com and Amazon are both brands that customers value and we will always work to do what’s best for customers. We are very excited to work with the local team. We think this deal will be great for the region and we’ll be hiring even more employees locally. We already have a small office in Dubai and Souq. com has its headquarters here.” As of now, Souq.com will continue to operate its current website as it is. Mouchawar further continued: “It’s still an initial phase for Souq.com and Amazon. We will continue to operate our current website as it is with the same partners. This is a milestone for the online shopping space in the Middle East. As we take this next step in the journey with Amazon, our customers will remain our key focus and we will continue to deliver a seamless online shopping experience. “We have created a great shopping experience for our customers and we are looking forward to working with Amazon to bring more products and offerings to customers even faster.” Despite strong fundamentals, the GCC is one of the world’s most challenging e-commerce playgrounds. With some of the world’s highest levels of GDP per capita, the region is home to many people with large disposable incomes. Yet, Belcaid mentioned that several obstacles are preventing the regional e-commerce market from reaching its full potential. “Consumer awareness issues, shortcomings in the
payments infrastructure, and logistics hurdles are the main ones. Most retailers have inadequate warehouse coverage across the region for the rapid delivery of products (less than 24 hours) that more customers are demanding. With all these barriers, it is no surprise that ecommerce in the GCC region today accounts for around 2% of the total retail market, which is considered very low. “Except for Souq.com and a couple of specialised e-retailers such as namshi.com, there wasn’t much e-commerce activity to talk about in the region recently. However, the market is a now embarking on a new, more significant trajectory. With the arrival of Amazon in the region, but also the launch of noon.com and the increased e-commerce activity from traditional retailers, we are confident the e-commerce activity will increase considerably in the region.” It is currently too early to wrap the heads around the further strategies of Amazon and Souq.com for the region since the acquisition is expected to close by the end of the year. With the deal appearing to receive the endorsement of the Dubai government, which is increasing focusing on technology, the acquisition represents a big space with room for a lot of winners. Pennebaker concluded: “We are focused on working with Souq.com to create a great e-commerce experience for customers in the Middle East. We are looking forward to both learning from and supporting them with Amazon technology and global resources.”
Logistics News ME | May 2017 | 23
C o l d C ha i n
Cold Chain Mission Experts tell Logistics News ME how the regional cold chain market is growing owing to the rising population and the efficient adoption of technology
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The cold chain players must adhere to service standards rather than get into price wars.”
he global cold chain market is expanding with considerable growth potential over the next few years. The growth of this market can be attributed to the significant rise in international trade of perishable foods, technological advancements in refrigerated storage and transport, government support for infrastructure development of the cold chain industry, and increase of consumer demand for perishable foods. Also, expansion of food retail chains by multinationals will enhance international trade and impact the growth of the cold chain market. The global cold chain market is expected to grow at a compound annual growth rate (CAGR) of 13.9% between 2015 and 2020. According to a new report from Zion Research, the global cold chain market was valued at $110.2bn. This is estimated to reach $271.9bn by 2020. Zion Research also noted that the total volume of the global cold chain network stood at 552.09 million cubic metres in 2014.
Charles Swanson, Knight Frank
Charles Swanson, Knight Frank surveyor for commercial leasing, said: “Demand for highquality cold storage facilities continues to grow, with many companies looking to use Dubai as a hub for their GCC operations. The supply demand dynamics for this market are currently in check, however, there is a possibility of an oversupply as more cold store warehouses come online in 2017.” As food wastage becomes a key global public and social issue, regional suppliers say the stage is set for innovation to transform the way the GCC handles its food distribution and reexports. According to Zion Research, the primary driving force behind cold chain expansion is the increasing need for efficient storage systems to avoid food wastage. This is integral to ensuring fresh produce reaches both international and domestic markets, particularly those countries with huge distribution distances. Greater efficiency in cold chain systems allows for perishable agriculture products, such as
fruit and vegetables, to stay fresh for longer. Abhishek Ajay Shah, co-founder and managing director of RSA Logistics, said: “Cold chain logistics is getting more complex, while the solutions available to customers remain limited in terms of quality and flexibility. Factors contributing to the increased complexity include rising population, a greater demand for products that are not locally sourced, and consumers insisting on shorter delivery periods. However, the market is bereft of service providers with quality infrastructure, compliant services, and transparent reporting. This poses a challenge to the burgeoning cold chain. “On the positive side, manufacturers, supply chain providers, and government entities are engaging in dialogues to increase the standards of the entire cold chain in order to prepare the region for the surge in population and resultant food supply required.” In June last year, RSA Logistics broke
Logistics News ME | May 2017 | 25
C o l d C ha i n
ground on the new facility, RSA Cold Chain (RCC), located in Dubai South. RCC, which houses a total capacity of 21,000 pallets, started phase one of its operations in March 2017, offering an initial capacity of 10,800 pallets, coupled with end-to-end third-party logistics (3PL) services for packaged food, fresh fruit and vegetables, dairy products, and frozen food. The warehouse comprises eight independent chambers, and with an ammonia-based chilling system, each chamber will accommodate temperatures as low as -25°C. The site for the new facility is strategically located just outside the bonded zone in Dubai South to maximise ease of access and minimise time lags in movement of the food products. RCC will also provide temperature controlled transportation, providing a holistic solution that meets the stringent compliance requirements for food storage and transportation, while focusing on quality and scalability. Shah mentioned that RSA CC is also excited about opening its new facility in the nonbonded zone of Dubai South later in April. It has been built with the highest safety and quality standards factored into its design. The facility will have eight chambers, each of which can go to as low as -25°C, and can store ice creams, fresh vegetables, packed food among other edible items. The facility uses an ammonia-based chiller system for the cooling, which is energy efficient. Shah said: “Currently, we offer just under 11,000 pallet positions which will double in phase two of the project expansion. Our endto-end solutions include transportation and distribution services from our vantage point between Al Maktoum International Airport and Jebel Ali Port with ability to offer space and infrastructure for value-added services.” Challenges ahead In today’s challenging economic scenario, cold chain operators are eager to find new strategies to reduce costs. In retail, requirements for smaller and more frequent orders are driving the use of multi-cell trailers. Swanson explained: “The cold chain players must adhere to service standards rather than get into price wars. Lower revenue and margins only lead to long-term low affordability and inferior service. Once the market price comes down, it takes very long for it to come up.” Another important factor in the cold chain market is the rise of population in the Middle East. This has resulted in a surge in demand for frozen food. Rapid growth in these markets is expected to become one of the primary drivers of cold chain in the years to come. This isn’t to say there will not be challenges
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High-quality infrastructure needs to be invested in to make the storage options compliant with the required standards.” Abhishek Shah, RSA Logistics
for cold chain operators. Shah added: “Cold chain players should prepare for a huge increase in the volumes of food that will move through the cold chain in the run up to mega events such as Expo 2020 and the 2022 FIFA Qatar World Cup. Meanwhile, regulatory
measures will become more stringent. In terms of the consumer, we can anticipate a growing demand for exotic, sustainable and health-conscious products from a customer base with greater disposable incomes. This is more of an opportunity than a challenge if handled the right way.” Like all supply chains, cold chain operators must continually upgrade technology to ensure efficiency, integrity, and safety. Swanson mentioned that there should be an official grading system, like that used in hotels. “Likewise, mandatory requirements for food operation should be listed and compliance monitored. And in order to maintain a smooth and efficient cold chain, it is necessary to have partnership with international reputable brands and customisation of service in response to the client’s needs.” Agreeing to the above, Shah pointed out that service providers need to co-operate with the government to make sure regulations are put in place and adhered to. “Organisations should leverage technology proactively to anticipate future challenges and use the information to plan accordingly. End-to-end visibility of products must be maintained to avoid contamination and food wastage. High-quality infrastructure needs to be invested in to make sure the storage options are compliant with the required standards.” Ensuring pharmaceuticals, food, and other chilled goods retain their integrity and safety remains an important target for cold chain operators. Globalisation, tightening regulation, and changing consumer demand continue to alter the scope of the task, while driving the need for technology, efficiency, and security.
THE SAFETY AND EFFICIENCY OF YOUR FLEET
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Int e rv iew
Five minutes with
The Technoforte-Palms chief executive officer (CEO) talks about efficient warehouse and logistics management system which can reduce costs and improve productivity
What kind of growth can we expect for the warehouse management systems in the region in ? Logistics, warehousing, and transportation is one of the largest gross domestic product (GDP) contributor to the Middle East economy after oil and gas. The Middle East itself is a growing economy and with its proximity to the emerging markets, the trade volumes are set to grow, as new trade corridors attract investments. Middle East countries also serve as a trade corridor between Asia – Europe and Asia – Africa. Global logistics players will seek local partnerships, shared facilities, and domestic expertise as they enter new markets. Their preference will be warehousing and logistics companies who are committed, have local knowhow, and have adopted technology. The growth opportunity for logistics and warehouse management system providers will remain positive and sustained. Companies that adopt technology and automation will be able to form domestic and international partnerships and witness sustained growth.
How has been the market for WMS in ? Has the market been affected by the ongoing economic challenges? The global warehouse management system market size is close to $2bn currently and growing at a healthy compound annual growth rate (CAGR) of 14%. With the advent of e-commerce and demanding customer needs, technology adoption and automation has become even more necessary to keep abreast of competition. The UAE has been the logistics hub for transshipments to other Middle Eastern countries and Africa. This has only been possible due to the governments’ investor friendly policies and creation of specific free zones, which are well connected by road, sea, and air.
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Transport and logistics industry is the key driver for economic transformation and diversification in the region.” 2016 has had a lot of upheavals in the Middle East region. Various reasons for such ups and downs have been subdued oil prices across the globe, geo-political unrest in the Middle East region, air-freight over capacity, and then sudden spikes in sea container rates during peak season. Competition has become intense and customer satisfaction has become the pri-
mary focus for every company. The good news is that export and import volumes are on the rise in the region and the logistics industry is attracting a lot of sovereign funds for infrastructure development. Transport and logistics industry is the key driver for economic transformation and diversification in the region. Saudi Arabia, the UAE, and Oman are some of the countries which are investing heavily on logistics infrastructure and related technology. A warehouse and logistics management system is the need of the hour and can help in reducing manpower costs, reach optimal inventory levels, and yet achieve higher inventory throughput with 99.9% accuracy. A good warehouse management system should be easy to use, should easily integrate with any ERP or third party systems, and should be easily extendable to suppliers and customers. It should store data such that it is easily retrievable. A good WMS should easily integrate with business intelligence and analytics systems to be able to get meaningful information which is actionable. What are the different WMS solutions that you have? Give me a brief on that. PALMS Warehouse Management System provides configurable supply chain processes required by companies to provide better customer service and control operational costs. Highly-advanced logic-based stock put away, collection, and intelligent direct stock movement features in PALMS helps dramatically control labour costs and space utilisation. The solution based on its service oriented architecture offers full integration to sales, purchasing, logistics, and other third party systems. We have ready solutions for industry specific verticals like automotive, pharmaceutical, third party logistics (3PL), electricals and electronics, consumer goods, food distribution, agriculture, apparels, and cold chain.
What are the benefits of an efficient WMS solution? How do you maintain that? A good warehouse management system should have the features which will result in the following benefits: Features
Easy to install and configure
Doesnâ€™t require heavy infrastructure and resources
User friendly interface
Screens can be easily navigated and user learning is fast
Option of hosting on-premises and SaaS
Options of in-house or cloud hosting
Can be hosted at one physical location and accessed from anywhere in the world over a browser
Multi-user and multi-location ready
Multiple users with different access rights can use the application sitting across multiple locations
Auto identification built-in
Barcode/RFID based operations like put away, picking, stock counting can be performed real-time
Locations in the warehouse or across warehouses can be auto-generated. Location hierarchy can be configured for easy SKU identification
Actionable dashboards for all activities
Provides visibility across all activities in a warehouse pro-actively and action can be taken by the incharge
Intelligent put away
System can assign locations for incoming goods based on volumes, ABC Analysis, restriction rules, or manually
EDI readiness for integration with ERPs, third party systems or machines using interface file or staging tables
Soft allocation of inventory for better sales planning, ordering and forecasting. This will result in better customer satisfaction
Real time rule-based picking for faster and correct item picking. Rules can be batch, manufacture date, FIFO, FEFO, location flush, serial number, expiry date, shelf-life etc.
Packing list and pack merge
Auto-creation of pack list which is a consolidated information of inner packs and has an out pack identity
Loading and invoicing
Load optimising and invoicing based on what is loaded
Location based inventory counting which supports blind count, guided count, last moved locations count, cycle count on ABC classification
Visibility across stock lying at different stages and resource (i.e. human power and machine) utilisation
Logistics News ME | May 2017 | 29
P re s s r el eas e
Airbus and SITA to provide cybersecurity services The new incident detection services will provide airlines, airports, and other air transport industry stakeholders with information about unusual cyber activity impeding their business
irbus and SITA have launched new Security Operations Centre Services customised for the specific needs of the air transport industry. These services have been developed to specifically meet an ever-increasing demand for cybersecurity in this industry, fast becoming one of its top priorities. Highlighting the importance of proactive cybersecurity, SITA’s Airline IT Trends Survey 2016 shows that 91% of airlines plan to invest in cybersecurity programs over the next three years. By joining forces, SITA and Airbus can provide the most advanced cybersecurity solution for the air transport industry. Almost every airline and airport in the world is a customer of SITA and it delivers solutions for the world’s most extensive communications network. Airbus works with companies, critical national infrastructures, governments and defense organisations to detect, analyse, and
30 | Logistics News ME | May 2017
counter increasingly sophisticated cyberattacks. Together they will use their expertise to detect cyber activity relevant to airlines and airports. When requested, the joint Security Operations Centre Services will provide appropriate containment and remedial action ensuring that a company’s digital assets are safe from attack. Barbara Dalibard, chief executive officer (CEO) of SITA, said: “As an industry, we need to move faster in developing new cybersecurity solutions that mitigate the risk of ever-changing threats. This requires constant collaboration and innovation. With SITA and Airbus CyberSecurity uniquely placed at the heart of the air transport industry, we can facilitate innovation and information-sharing through services such as the Security Operations Centre Services, providing solutions our customers demand and need.” François Lavaste, head of Airbus CyberSe-
curity, said: “Air transport is part of the Airbus DNA, so it was only natural that we joined forces with SITA to adapt our innovative cybersecurity solutions to this new service area, which is experiencing exponential growth. Our standard solution mainly combines real-time monitoring services for applications and communications dedicated to air transport and incident response services.” The joint Airbus and SITA Security Operations Centre Services is the first of a new portfolio of cybersecurity products and services being developed by SITA. The portfolio will help airlines and airports identify, detect, and react to cyber threats while protecting their company assets from attack. In addition to creating a customised portfolio for the industry, SITA, in 2016, identified cybersecurity as one of five keys areas where it is exploring new solutions on behalf of its members as well as the wider air transport community.
Int e rv iew
Look into the future
Ramez Shehadi, executive vice president and managing director at Booz Allen Hamilton MENA, discusses the benefits of blockchain technology in supply chain digitisation in the GCC Could you give us a brief about the blockchain technology? How widely it is used in the logistics and the supply chain industry in the GCC? Blockchain is an emerging and rapidly evolving technology that enables the exchange of information digitally without the need for a trusted third party. It uses a distributed ledger that maintains a continuously growing list of transactions and records between parties that is then distributed and shared with multiple parties, via software on the internet, either publicly or privately, on a permissioned lock and key basis. Each block within the chain is created when parties agree and validate transactions within it, ensuring that all transactions are authentic. Transactions cannot be tampered with or altered within a chain as any change requires a consensus among parties, thus ensuring the highest levels of safety and security, without the burden and maintenance of large-scale enterprise platforms. As a result, it improves cost efficiency, durability, reliability, transparency, and greatly speeds up transactions. Changes to public blockchains are also publicly viewable by all parties, which ensures that all transactions are not manipulated without mutual consent. This technology is increasingly becoming recognised as a next-level innovation in the logistics and supply chain industries for value exchanges such as payments, ticketing, ordering, records management, etc. As part of Dubaiâ€™s plans to execute key transactions on blockchain technology by 2020, IBM has announced a blockchain initiative that will begin collaboration with Dubai Customs, Dubai Trade, and its IT provider, Dutech, to explore the use of blockchain for a trade finance and logistics solution for the import and re-export process of goods in and out of Dubai.
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Regional governments have already started to experiment with the potential uses of blockchain technology in both the public and the private sectors.â€? Ramez Shehadi, Booz Allen Hamilton MENA
What are the benefits of the blockchain technology in the supply chain? How will it revolutionise the same? Blockchain technology possesses multiple cross-sector applications. In the logistics value chain, it streamlines the transmission of shipment data, allowing relevant stakeholders to
receive real-time information about the status of transactions and accurately monitor the journey of their shipments. Additionally, logistics blockchain-based solutions aim to replace paper-based contracts with smart digital contracts. Such transparency could lead to significantly better performance through enhanced shipping efficiency, cross-border collaboration, and by streamlining the exchange of shipment data between parties. The logistics and supply chain sector will also be drastically impacted by the use of blockchain technology for autonomous vehicles. Whether it is an automated fleet of drones, trucks, ocean cargo vessels, or even smart forklifts, smart connectivity is paving the way for lower fuel consumption, shorter journey times, a dramatic reduction in accidents, lower costs, as well as increased environmental benefits. The industry is already gearing for this change. For example, DHLâ€™s report on SelfDriving Vehicles in Logistics discusses applications in warehousing operations, outdoor logistics, line haul transportation, and last-mile delivery. These autonomous and connected vehicles are likely to be made up of multiple, disparate device ecosystems sharing information with each other and with public and private infrastructure. Blockchain technology can support this by providing a trusted and secure platform for all participants to transact. What trends have you observed in the region regarding this technology? While the adoption of blockchain technology is still in its infancy in the GCC, regional governments have already started to experiment with the potential uses of it in both the
public and the private sectors. The benefits are widely expected to cut costs; enhance security; reduce the need for large, expansive, and maintenance-dependent infrastructure platforms; and produce faster transaction models across a variety of sectors. The UAE, in particular, has been actively exploring the commercial potential of blockchain. The Global Blockchain Council was set up by the Dubai Future Accelerators in February 2016, consisting of regional and international players such as Etisalat, Emirates NBD, du, Dubai Multi Commodities Centre (DMCC), IBM, and Microsoft. In one recent initiative, the DMCC partnered with BitOasis, a domestic Bitcoin exchange, to develop a proof-of-concept for the DMCC Business Centre to incorporate flexible tenancy contracts and registration procedures on blockchain. Although highly specialised, this could be expanded to include similar concepts in property acquisition, rentals, transportation, and furthering the national smart city agendas. What kind of interest have you observed from which sectors for the adoption of blockchain? Blockchain can benefit a range of different sectors including government, banking and finance, start-ups, transportation, real estate, and healthcare. GCC countries like Saudi Arabia, Qatar, and the UAE have been actively pursuing continued infrastructure development to achieve their national smart city strategies. In line with these strategies, blockchain technology is becoming an instrumental technology for enhancing city-wide, cross-sector connectivity, collaboration, and security. Financial Services In the financial services sector, for example, blockchain has offered support on a wide range of use cases for financial institutions, including trade finance, remittances, syndicated loans, loyalty programs, and KYC registries. Several banks have developed blockchain-based platforms in order to help optimise internal processes, gain access to digital records, reduce manual processes, increase the speed to process transactions, and reduce overall risk and fraud due to traceability and transparency of all transactions. Real Estate In the real estate sector, blockchain initiatives are being implemented to create a distributed ledger for buyers, sellers, brokers, and regulators. For example, ABN AMRO and its tech-
nology partner IBM recently launched a pilot to help parties involved in real estate transactions record and exchange information. A similar project was put forward by the blockchain city-wide advisor, Consensys, in line with the Dubai Blockchain Strategy 2020 to develop a real estate database. Incubation of start-ups Blockchain is also beginning to be considered as a technology that could support the incubation of start-up ecosystems by simplifying processes such as registering a business, securing funding, and patenting ideas. The technology can allow individuals to make their data accessible to several pre-approved entities involved in the network such as business registration, patenting and funding authorities, while also allowing data to be updated in real time. Transport and logistics The transportation industry is another sector that has been evaluating the potential benefit of blockchain, especially with the focus on developing regional smart city infrastructures. The
advent of vehicle-to-vehicle (V2V) and vehicleto-infrastructure (V2I) technologies mean a growing interconnected transportation grid. Healthcare In the healthcare sector, blockchains can help secure sensitive patient data through the creation of trustworthy, multi-signature, and cryptography functions. Blockchains can also be advantageous when it comes to insurance and billing, with technology creating the possibility for patients, insurance companies, and hospital billing departments to securely manage payments through a single platform, thus reducing redundancies across the industry. As blockchain continues to gain momentum, global education institutions are also increasingly involved in blockchain based research. For example, MITâ€™s Media Lab Digital Currency initiative brings together international experts in areas ranging from cryptography, to economics, privacy, and distributed systems. The effort will reach across the MIT campus to explore the many issues involved in blockchain and bitcoin technology.
Logistics News ME | May 2017 | 33
Ware h o us in g
It’s all inside
Industry experts highlight the growth in demand for high-quality warehouses in the UAE owing to the development of popular free zone areas. Logistics News ME finds out
he warehousing market in the UAE has witnessed a resurgence in the recent years. According to the UAE Logistics Market Outlook 2019 by Ken Research, the UAE government has realised that warehouses are the backbone of a logistics industry. This has propelled them to invest heavily in development of warehousing infrastructure over the period 2009-2014. Construction of several logistics developments such as Dubai Logistics City has attracted a huge number of global powerhouses, including Agility, Kuehne+Nagel, Barloworld Logistics, and many others. Bonded free zones such as Dubai South and Jebel Ali Free Zone (JAFZA) remain popular areas, as demand for new and quality stock remains high. Infrastructure improvements to Jebel Ali Port and Al Maktoum International Airport have also assisted in attracting more occupiers to the area. The location of the UAE as a central point between the east and west, the taxfree environment, and the creation of dedicated, industry-specific free zones has resulted in steady growth in trade volumes,
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We’ve seen rents for free zoneowned and operated property remain stable from 2015 till today.” Arun George, CBRE ME
employment, and overall industrial activity in the country. Abdulla Belhoul, chief executive officer (CEO) of Dubai Wholesale City, said: “In 2016, we saw strong growth in the demand for purpose-built warehouses for logistics and light industrial use, with 31 new companies, which includes expanding of leasing spaces in our 65ha warehouse project. The total area leased by existing partners expanded to 46,451 sqm in 2016. The current surge in demand seems to originate largely from main manufacturing sectors, primarily food and beverage, machinery and mechanical equipment, and logistics. We have also witnessed increased interest from investors, start-ups, and small and medium enterprises (SMEs) active in the halal sector.” In February this year, during the Gulfood, Dubai Wholesale City, a fully integrated wholesale trading hub, launched light industrial units and refrigerator warehouses at Dubai Industrial Park, the dedicated industrial hub within the city. Belhoul mentioned: “In line with the upward trend, we launched a new complex of light industrial units and refrigerated warehouses, ranging from 464 to
imously satisfied with the standards of the MAG warehouses, which were built to offer top quality industrial leasing opportunities in the increasingly popular Al Quoz area and AlSaja’a area, where we are developing the 14ha warehouses complex. MAG’s strategy is to identify gaps in the market and fill them effectively to answer client needs, and the warehouses complex were launched because we witnessed strong demand for property like this from a wide variety of business in the market.”
Our business partners, as a rule, place great importance on sustainable manufacturing that minimises negative environmental impact.” Abdulla Belhoul, Dubai Wholesale City
1,022 sqm, at this year’s Gulfood expo. We held several meetings with investors and business partners to promote our integrated portfolio of solutions for the food industry such as industrial lands, warehousing facilities, open storage yards, labour camps, offices, and showrooms. Our offerings elicited a tremendous response from visitors, especially entrepreneurs and SMEs working in the food and halal industries across the region, generating 208 inquiries from potential clients aiming to establish and develop their business in the UAE.” In August 2016, Dubai Industrial Park offered 70 pre-built storage and light industrial unit warehouses for lease. The warehouses and storage spaces were available for shortterm and long-term lease. Ranging in size from 464 sqm to 929 sqm, the warehouses were designed for cold, chemical, and general storage, as well as for light industrial use. Spanning an area of over 65ha, the project included warehouses with provision for offices and retail showrooms equipped with attached storage. UAE-based real estate developer, MAG Property Development, purchased a 5.8ha warehouses complex plot, located in the Emirate’s Al Quoz area, from Tecom three years ago. The land has since been divided into nine plots which offer single- and multistore facilities. Talal Moafaq Al Gaddah – CEO of MAG Property Development, said: “We have received an overwhelmingly positive response from our clients, who are unan-
Current trends Despite the demand, with the downsizing and consolidation of the oil and gas industry in the past years, performance in the industrial sector remained flat in 2016, as occupiers postponed new purchases and expansion requirements on the back of a slowdown in global trade volumes. Arun George, senior surveyor at CBRE Middle East, said: “There has been a general slowing of demand from occupiers and overall rents have come under pressure. The new high quality non-free zone and free zone owned and operated stock such as the warehouse units from JAFZA, Dubai Silicon Oasis (DSO), and Dubai Airport Free Zone (DAFZA) have shown resilience to this pressure, whereas lower quality, non-free zone and secondary free zone stock not owned and operated by the free zone authorities has shown less reliance, largely owing the absence of supply in the former vs the latter.” Rents for light industrial units (LIU) and warehouses developed, owned, and managed by the free zone authorities such as Dubai South, JAFZA, DSO, and DAFZA have remained unchanged with low vacancy rates, higher demand from occupiers, and with very limited new supply. The rents for the secondary market stock within the free zone has more availability compared to the free zone, leading to pressure on rents. The rents in non-free zone or onshore locations such as Al Quoz, Ras Al Khor, and Dubai Investments Park have declined by 10 to 20%. The capital values have reduced as well by 10 to 20% across all industrial markets. The market currently has more sellers and fewer able and willing purchasers. George further continued: “In 2017, we expect the rents to continue the trend. We’ve seen rents for free zone owned and operated property remain stable from 2015 till today. There is a continuing trend for occupiers of older, non-free zone / on-shore locations such as Al Quoz and Ras Al Khor to relocate to newer properties and locations like
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Ware h o us in g
Dubai Investments Park (DIP) and Dubai Industrial City (DIC). As a result, the older locations are starting to show higher vacancy rates and, now a circa 10 to 20% decline in rental levels. Capital values have reduced as well, by circa 10 to 20% across all industrial markets, with the market currently having more sellers than purchasers.” Future outlook Experts point out that a number of warehouse developments is expected to be completed in the onshore locations of DIP and Dubai Industrial City and this is expected to underpin rents in these locations. Belhoul mentioned: “The Dubai Industrial Strategy 2030 has reinforced the commitment of Dubai Industrial Park to contributing to the development of the manufacturing sector for the benefit of its partners and society as a whole. This year, the leading industrial park in the emirate has its sights set on expanding its service portfolio and market presence through offering new opportunities for existing and potential clients with an emphasis on environment-friendly and sustainable solutions. “Our business partners, as a rule, place great importance on sustainable manufacturing that minimises negative environmental impact. With new investors and upcoming
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Our strategy is to identify gaps in the market and fill them effectively to answer client needs.”
Talal Moafaq Al Gaddah, MAG PD
developments in many industrial sectors, we spare no effort in enhancing our performance and upgrading our infrastructure, building new roads and plots to meet the dynamic needs of our clients.” Gaddah also considers the UAE as the logistics centre for the Middle East region, where the country is a prime destination for distribution to both Middle Asia and Europe. He continued: “Dubai has the infrastructure, the facilities to import and export, and the government’s support, which makes it very attractive to companies. Given the demand for the next seven years, we are building between 56ha and 74ha of warehouse capacity because there is always demand for warehouse space here.” Experts believe that occupiers do have an opportunity to secure a new and good quality facility at a competitive rate now, whereas the risk for further in 2017 is the increased demand for property to cater for 2020. George concluded: “We anticipate a good number of warehouse developments to be completed in DIP and Dubai Industrial City. It is a good opportunity for occupiers to secure new good quality premises. We anticipate demand from occupiers from the construction and allied sectors to increase with new real estate development projects starting as we approach 2020.”
G ov e r nmen t
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A pragmatic approach Industry players highlight the importance of Saudi Arabia’s Vision 2030 in promoting the kingdom as a centre for logistics and transportation in the region
he geographical location of Saudi Arabia has always proven to be very favourable towards its logistics and transportation industry. Being situated at the crossroads of Asia-Europe and AsiaAfrica, it has been one of the promising factors behind such a positive growth of the Kingdom’s logistics market. Being a heavily oil-dependent economy, Saudi Arabia regularly imports goods into the country. In 2015, industrial products such as machines, engines, and pumps contributed to 15.8% of total Saudi imports, which sat at a value of $26.8bn. Vehicles, electronic equipment, and iron/ steel products follow behind with 14.7%, 11.5%, and 3.4% respectively. According to Saudi Arabia Logistics & Warehousing Market Outlook to 2020 - Expanding Industrial and Retail Activities Supported by Infrastructure Spending to Support Growth report by Ken Research, the government has announced plans to invest $30bn in upgrading facilities to enable the kingdom’s ports to compete on the global stage. Furthermore, the expansion in the railways and airline networks in the country will allow more number of cargos to be transported from one place to another. The report further stated that rising retail and FMCG industry of the Kingdom will accelerate the demand for warehouses storage, transportation, and logistics facility. Most of the FMCG and retail industry of the country requires warehousing and cold storage to accommodate all the products safely. Additionally, the booming e-commerce industry will also
trigger the demand for logistics and warehouse storage in the country. Freight forwarding services will increase at a compound annual growth rate (CAGR) of 6.4% during 2016 to 2020.This incline in share will be on account of several expansion projects such as expanding capacity of Jeddah and Dammam port - the upcoming industrial cities in the country which will surge the demand for freight forwarding services in Saudi Arabia. Major players in the Kingdom such as Aramex, DHL, and others also have plans to expand in the coming years to maintain their stronghold in the market, said the report.
Vision With the fallout in global oil prices, Saudi Arabia is charting a new direction towards developing an economy that is non-oil dependent. With low oil prices having shook the economy, resulting the government into a huge budget deficit, the Deputy Crown Prince has announced a bold reform in line with Saudi Arabia’s Vision 2030. Fabian Boegershausen, manager at Solidiance, said: “The Vision 2030 includes four key pillars, including boosting non-oil revenue, listing Saudi Aramco and setting up a sovereign wealth fund, increasing the small and medium enterprises (SME’s) and private sector share of the economy, and restructuring public sector spending. “The intended reforms will have effects on the economic structure in the long term but also yield several short-term opportunities, such as the re-tendering of logistics contracts.
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G ov e r nmen t
Saudi Aramco alone spends $33bn annually on its supply chain – a large part of which can be expected to be re-tendered following its now discussed public offering. Also, the KSA government is becoming more open to issuing the very precious licenses for full-fledged foreign logistics businesses.” The logistics industry in Saudi Arabia is confronting a time of many changes. Considering the 2030 vision, the diversification milestones also mean that the GCC governments will rely less on government financing and increase investment by the private sector. Creating successful partnerships between private sector investors and the government will be a critical factor in shaping the economy over the coming years. According to industry players, one of the few sectors where investments can be expected from both local and international players to continue, albeit slower, is in the logistics sector. While currently active logistics firms and even the local market leaders will struggle under the business downturn, new entrants will seek to fill the gap in Saudi’s overall logistics landscape. This is closely connected to the attractiveness of the e-commerce and distribution business, which many believe, to be still growing and to attract further investments. Hence, while for many logistics firms, times are hard, those who saw future opportunities in the market may actually still continue to pursue them. Saudi Arabia-based Almajdouie Logistics has been through a transformation itself and continues to strengthen its competitiveness by leveraging the expansion and infrastructure investment the whole region is undergoing with regards to the vision. Baheej Al Biqawi, chief executive officer (CEO) of Almajdouie Logistics, said: “Developing competitiveness in the logistics and transport sector and positioning a given country as an ideal logistics hub is at the core of this vision and, in turn, it must stimulate a different approach and thought process for logistics service providers. Our customer mix has always been from diverse industries and locations in the region, such as oil and gas, petrochemical, power and utilities, FMCG, infrastructure, etc. Vision 2030 provides us an immense opportunity to increase our scope and widen our reach in the market. “For example, Saudi 2030 vision entails that the private sector increases its contribution from 40% to 65% of gross domestic product (GDP), the expected shift in private sector development, and spending allows us to tap into both our human and financial capitals.” Experts point out that the current economic downturn is a direct result of reduced activity in the oil and gas sector and radically reduced government spending in 2016,
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Vision 2030 provides us an immense opportunity to increase our scope and widen our reach in the market.” Baheej Al Biqawi, Almajdouie Logistics
The intended reforms will have effects on the economic structure in the long term but also yield several short-term opportunities.” Fabian Boegershausen, Solidiance which led firms in state-depending industries to a revenue and cash flow crisis. That, in turn, posed an increased pressure on the government to drive their initiatives to positive result. Boegershausen said: “At the same time, however, the market turmoil make attempts to privatise state assets much more difficult and also public support for painful reforms, such as new taxes and regulations, will be hard to attain. However, we believe the government will eventually have no other way but to push further.” Future trends According to Biqawi, Vision 2030 will stimulate the economic growth of non-oil economic sectors and open new services and products fulfilling the pursuit of Saudi Arabia to become a global logistics hub. He continued: “Since these countries must widen their industrial base in order for them to transform their economy, the private sector must take on a
larger role in future expansions in terms of our investment and expertise.” In most industries, market participants expect 2017 to be a year as difficult if not tougher than 2016. The exciting outlook on key developments in logistics, e-commerce, and the path towards the vision 2030 cannot obscure the fact that the market is challenging. Boegershausen concluded: “With two new major free trade zones (FTZs) being developed, the government has begun to issue new foreign business licenses to international logistics firms for Saudi Arabia. Of course, the end every crisis brings about also a positive change and in certain respects the economical selection effected from downtown markets benefit even this economy. Needless to say, that times are tough. Companies will need to focus on operating leaner and more efficient than ever before and build out competitive advantages while seeking out pockets of growth in the Kingdom and neighbouring markets.”
E v e n t P r ev i e w
With more than 300 exhibitors from over 30 countries, this year’s Airport Show will boast latest smart technologies in the global aviation business. Logistics News ME presents exhibitor highlights
his year’s Airport Show has announced further expansion, which will take place from May 15-17, 2017, at Dubai International Convention and Exhibition Centre. Huge interest from the global aviation industry in the Middle East and the latest smart technologies
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showcased on this platform has led to an overall increase in year-on-year space bookings for the 2017 edition. Held under the patronage of HH Sheikh Ahmed bin Saeed Al Maktoum, president of Dubai Civil Aviation Authority, chairman of Dubai Airports, and chairman and chief ex-
ecutive of Emirates Airline and Group, the last year’s edition was the most successful so far with a participation of over 300 exhibitors from over 55 countries and occupied a gross space of 15,000 sqm. We look at some of the exhibitors and their products to be showcased: -
Gillinder announces launch of L-862 and L-862E HIRL lenses
Europe’s S4GA unveils unique runway lighting system European company, S4GA, has introduced a 100% solar-powered high-intensity runway lighting system for CAT I Airports. The company specialises on fixed and portable ground lighting for airfields, and will be presenting their hybrid lighting system as more reliable alternative for conventional airfield ground lighting (AGL). The company focuses primarily on airfields located in remote regions and areas with unreliable or unavailable electricity sources - African Desert, Caribbean Islands, or Jungles of Brazil. S4GA supplies such airports and helipads with its hybrid airfield ground lighting (HAGL), allowing to serve 24/7. The system is off-grid which means it has no cables, no CCRs, and no connectors. Every lighting unit works independently from others. S4GA also offers a unique airport lighting control and monitoring system (ALCMS) that enables control over entire system and individual light monitoring (battery level, charging status, and operating condition). Hybrid lighting is an affordable solution that allows to significantly reduce investment cost of AGL. The system for 2,000m runway will cost seven times less than a conventional wired system. At the same time, Hybrid AGL is more reliable than wired system. It is offgrid and elevated which means significantly less risk in failures and less time for deployment. Accordingly, the company helps its customers to increase safety, save money on maintenance, and generate profits due to increased operations. A company statement read: “What distinguishes S4GA portable lighting from competitors is its high visual range of over 10 km. The system has been already successfully implemented by air ambulance, military, police, and various flying schools. All products are certified and ICAO compliant. Hybrid AGL is approved as primary lighting system by global aviation authorities FAA, CASA, EASA, and ANAC.”
Runways designed for use at night are equipped with a variety of lighting systems to identify its features. The most basic component of airport lighting is the runway edge lights. These lights border the sides of the runway at maximum intervals of 200 feet. Most commercial and military airfields are being equipped with high intensity (HIRL) lights. Gillinder has designed and will be showcasing inner and outer lenses for these HIRL lights at this year’s Airport Show. “Gillinder inner and outer lenses allow the equipment to meet FAA Specifications (Advisory Circular 150-5345-46D) and chromaticity (AS2505B) when used in an L-862 fixture with a 150-watt quartz halogen lamp and an L-862E fixture with 200-watt quartz halogen lamp,” read a company statement.
Jewers Doors further expands in the Middle East To further consolidate its involvement with hangar door and industrial door projects in the Middle East, Jewers Doors has moved to new and large offices, overlooking Business Bay in Dubai. This latest move, which comes with increased staff numbers, means that the Dubai branch has a full sales, service, and installation team. Ben Pritchard, who heads the Dubai branch of Jewers Doors as GCC regional sales manager, said: “With increased demand for both our Esavian and Phoenix range of doors, it is vital that we offer easy accessebility and comprehensive support, which our new centrally-located office allows us to do.” Jewers Doors has supplied its Esavian hangar doors and Phoenix industrial doors to customers across the Middle East for several decades. The company opened a branch in Dubai specifically to service the requirement of customers in the Arab States of the Gulf. Meanwhile, Jewers Doors, which already operates globally, continues to seek expansion in other countries and, to this end, is once again exhibiting at MRO Americas show in Orlando, USA, at the end of April.
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E v e n t P r ev i e w
Cavotec wins $18m order for Dubai’s new Al Maktoum Airport
CEM Systems releases latest security management system Tyco Security Products, part of Johnson Controls, released AC2000 v8, offering new features that increase the performance, simplicity, and scope of the AC2000 access control system suite from CEM Systems. These include AC2000 Data Partitioning and enhancements to AC2000 Security Hub command and control application. CEM Systems has also released enhancements to the emerald Intelligent Access Terminal range with the emerald TS100f and TS200f fingerprint terminals. Richard Fletcher, product manager, CEM Systems, said: “The latest release of AC2000, which includes data partitioning, offers enhancements for multi-site and multi-tenanted customers. AC2000 Data Partitioning is a powerful feature for scenarios, where multiple companies utilise a single security management system. It empowers each company by giving them control over their own private access areas while still allowing them access to common areas within the building or campus”. This release also offered enhanced functionality of emerald, CEM Systems’ award winning intelligent access terminal. Designed for use with the CEM Systems AC2000 security management system, emerald terminals not only controls access to restricted areas but also open a world of infinite possibilities by bringing AC2000 intelligence directly to the edge. Emerald now supports a configurable Boarding and Deplaning Route Management (BDRM) mode, which provides a sophisticated touch screen-based passenger routing system for airports. Emerald BDRM can be pre-programmed to activate a variety of functions from a single selection on the device including enabling relevant signage, interlocking a series of doors to form a route, enabling air bridges, fixed ground power units, and much more. Building on the existing range of video, perimeter, fire, and intrusion integrations, AC2000 now offers new integrations including interfaces to DSC PowerSeries Neo intrusion panel and Milestone XProtect Video Management System.
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Cavotec and A&P Group of Companies have been awarded a contract to supply, install, test, and commission PCA and 400Hz systems, including underground services, for more than 60 remote aircraft parking positions at Al Maktoum Airport. Deliveries are due to start in the second quarter of 2017, with the first phase of commissioning planned for the third quarter. The project consists of a large number of multiple aircraft ramp system (MARS) stands, where the supplied equipment will service all types of aircraft, including the Airbus A380. Juergen Strommer, chief operating officer of Cavotec’s Airports and Industry business unit, said: “Dubai Airports already use Cavotec’s cutting-edge systems at Dubai International (DXB) Concourse D at Terminal 1, remote aprons at Terminal 2, concourses B and C, and the Expo remote apron at Terminal 3. PCA technologies play a pivotal role in cooling aircraft in hot environments such as Dubai, and the Cavotec units in this order will enable Al Maktoum International to achieve the highest levels of service, readiness and passenger comfort.” Yiannis Constantinou, CEO of A&P Group of Companies, said: “We are pleased to have entered into an agreement with our reliable partners Cavotec, to support us on yet another important, extremely fast-track, and challenging project, and rely on them to perform as on earlier occasions.” Under the contract, Cavotec will supply state-of-the-art 400Hz converters, and its Super Cool DX PCA technology as part of the expansion project at Al Maktoum Airport. Gary Matthews, Cavotec market unit director, Airports, said: “This is a milestone project for the Cavotec group in terms of its scope and technological characteristics. It is also a testament to the excellent, long-term relationships we have with customers and suppliers.” Previously, Cavotec was awarded another turnkey contract to design, supply, install, test, and commission Super Cool DX PCA units at Dubai International Airport’s Concourse C.
The largest international trade exhibition for the automotive service industry in the wider Middle East
7 â€“ 9 May 2017
The definitive platform for fleet management and logistics solutions Whether for fleet management or for logistics and transportation, discover a diverse range of suppliers, consumables, products, services and equipment to manage your business efficiently and cost-effectively. Register at www.automechanikaDubai.com/Register
E v e n t P r ev i e w
Automechanika 2017 This yearâ€™s Automechanika promises to be bigger and better with the demand for vehicle sales and spare parts increasing in the region. Logistics News ME presents key highlights
n upward trend of both vehicle sales and spare parts demand across the Middle East has been welcomed by global automotive aftermarket players, as they ready themselves for the return of the regionâ€™s largest automotive service industry trade fair in Dubai. While macroeconomic factors negatively impacted vehicle sales in 2016, analysts Frost & Sullivan expect renewed growth from 2017 onwards. According to their research, new car sales in the Middle East is estimated to grow 9% annually, reaching 4.4 million by 2020, and bringing the total number of vehicles in operation to
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44.5 million. That, coupled with an average vehicle age of nearly eight years, means demand for automotive aftermarket products and services in the Middle East is also on an upward growth curve; revenue from engine and car components, systems, tyres, and auto accessories, is estimated to reach $11.6bn by 2021, growing annually by 4.9%. A regional market full of opportunity will be underlined by Automechanika Dubai 2017, where more than 2,000 exhibitors from 55 countries, will showcase their latest wares to thousands of trade buyers and decision makers from throughout the Middle East, Africa, and further afield. Taking place from 7-9 May,
2017, at the Dubai International Convention and Exhibition Centre, the annual three-day event will arrive with the biggest aftermarket brands on-board, spread over six product sections of Parts Components; Electronics and Systems; Accessories and Customising; Repair and Maintenance; Car Wash, Care and Reconditioning; and Tyres and Batteries. With more than 1,400 exhibitors combined, Parts and Components, and Electronics and Systems comprise the largest portion of Automechanika Dubai, and features global stalwarts such as brakes manufacturer Brembo from Italy, Delphi from the UK, and Japanese drivetrain systems manufacturer, Exedy. Toshihiro Abe,
vice president of Exedy, said the company hopes it can maintain its market share, with the forecasts in the regional market painting a positive picture for its future business. “We’ve generated new business for our automatic clutches while trade is also growing in Africa in recent years. Exedy continues to hold a large share in both domestic and international markets, establishing 40 group companies and covering 23 countries worldwide. Our participation at Automechanika Dubai will increase our brand awareness and promote our products, both for existing customers and new prospects. In this way, we hope to expand our business to African and the South Asian markets.” Meritor, the world’s largest independent manufacturer of axles for the heavy-duty industry, is returning to Automechanika Dubai
2017 for the third straight year. The Americanheadquartered Fortune 500 Company views the Middle East and African automotive aftermarket as one of its key growth markets. Stefan Kaltenbach, managing director for Meritor in Europe and the Middle East and Africa, said: “We want to grow in the Middle East, where we recognise a great potential of cooperation with parts distributors and potential fleets. Automechanika Dubai is becoming one of our most important platforms for meeting customers and having the chance to display our company and our offerings, while it also enables us to explore new territories and meet trading companies operating in their respective markets. We are excited to be able show our competencies in coaches and buses, trucks and trailers with existing and new product ranges.
“Spare parts demand for buses and coaches continues to grow across the region, for which we have exciting new solutions that customers in Europe and also in the Middle East trust in.” Elsewhere, UAE-based Al Dobowi, an eminent global player at the forefront of tyre and battery industry, is among the 200plus exhibitors at Automechanika Dubai’s Tyres and Batteries section. From research and design, manufacturing and distribution, to retail and service, Al Dobowi is involved in every aspect of tyre management solutions, and also the largest battery manufacturer in the region. Surender Kandhari, chairman of Al Dobowi Group, said: “Automechanika Dubai has been a good platform for networking ever since we participated in its very first edition. It has now grown significantly as showcased by its various versions in other cities. The Dubai exhibition has driven annual increase of exhibitors and visitors alike giving us opportunity to engage with industry partners and peers mostly from Middle East, Africa and Asia.” Automechanika Dubai’s global influence is underlined by the presence of more than 20 country pavilions and 35 international trade associations, while 90% of exhibitors and 51% of visitors are expected to come from outside of the UAE. Ahmed Pauwels, CEO of Messe Frankfurt Middle East, Automechanika Dubai’s organiser, said: “Automechanika Dubai is already among one of the world’s top five international trade fairs for the automotive aftermarket, and what makes it unique is that it connects suppliers from all over the world with a diverse mix of visitors that would otherwise be virtually impossible to reach. “But it’s not just a platform to showcase products and meet new customers. It’s an important stage to open dialogue with existing contacts, find solutions to any issues they’re facing, and plan business strategies year-onyear. It’s also an ideal opportunity for automotive aftermarket stakeholders to bring technical awareness to the market, and this is something we’ll look to build on in the coming years.” Automechanika Dubai 2017 returns with its popular Truck Competence initiative, where more than 1,000 exhibitors will showcase their products dedicated to the entire value chain in the truck sector, from parts and accessories, to workshop equipment, body repairs, and care. It will also feature the popular Automechanika Academy – a series of seminars, presentations, and workshops about key issues and regulations that affect the automotive aftermarket, and the African buyer-seller meet, connecting suppliers with buyers from the world’s second largest continent.
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V i e wp o i n t
Get a grip
Dan Quinn, senior vice president at BravoSolution MENA / Tejari, talks about taking control of transportation spend management, which is good for the Middle East shipper
Within the world of procurement, few spend categories combine the broad impact with the complex balancing act of transportation. For almost every business that buys, makes, sells, or delivers any physical goods, transportation is a large part of their cost and a critical factor in their success. Rarely is the balance of cost and quality so important to a company’s – and its trading partners – fortune. Historically, shippers would often be forced to try to get the best pricing they could negotiate with a supply base they felt tied to in order
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to ensure a good service and a low risk to their supply chains. With the broader availability of optimisation technology within procurement toolkits, shippers are now equipped with the tools to make informed strategic decisions about what they are willing to pay without compromising on quality. Optimisation in this context works by allocating proposals from carriers and logistics service providers to meet the shipper’s demand for service, expressed as transportation lanes with a volume and pattern of shipments
on those lanes. The shipper determines what constraints and business rules are necessary to ensure the minimal levels of service are obtained in a low risk way. As a result, the optimisation technology will immediately identify the lowest cost way to achieve that base level. And then they can add new restrictions to drive a higher level of service and solve for the lowest cost to achieve that. Comparing the costs of these two scenarios give shippers an objective understanding of the premium to be paid for the higher level of service, and it is
possible to then evaluate if that service warrants the higher price. With this innovative capability comes a new opportunity. Now, the analytical horsepower enables shippers to consider many more options from potential suppliers—varying routes, equipment, service levels, and even modes. And suppliers can offer contingent pricing that could lead to even greater savings based on conditions being met by the shipper. The evaluation of this broader universe of option unlocks substantial incremental savings that positively impacts the bottom line of the shipping company. As the various players in the logistics industry become more experienced with these procurement tools and processes, they start to innovate on their own. Shippers begin to ask themselves important questions such as what can we offer now that will give us a competitive advantage? All parties can play a role in identifying and implementing better solutions with the aid of technology. These days, while many companies have now leveraged procurement technology to reach a more sophisticated transportation sourcing solution that promises game-changing value for them, it’s a smaller number that actually realise most or all of that value. Savings erosion is a constant challenge when it comes to transportation. What many don’t realise is how delicate the balance is that delivers both low costs and high service. The ecosystem that supports such utopias depends on the consistent procurement decisions and smooth operations of many shippers, carriers, service providers, and consignees. Inevitably, change is constant, and as a result, shippers must either pay higher prices, suffer worse service levels, or take steps to continuously re-optimise their transportation procurement decisions. This is where the evolution of procurement technology to go beyond just sourcing and tendering has been critical – awards from these activities must be memorialised in contracts. Those contracts and the rates within them must be readily available to the parties involved in executing the business, and they must be living documents that can change as rapidly as the logistics web connecting all of these different companies’ changes. Procurement technology has evolved to not only create strong solutions, but to automatically disseminate them to the myriad people and systems that rely on those solutions. The constant change doesn’t stop at this point. Now, procurement must move into maintenance mode, continuing to improve the solution and react to changes - or preferably, be ahead of them. To ensure this, the solution requires visibility.
What many don’t realise is how delicate the balance is that delivers both low costs and high service.” Transportation procurement technology can reach out to collect data from ERP systems, transportation management systems, freight forwarders, freight payment firms, and other sources to build a single source of truth in what is really happening and at what price. Shippers need to ask themselves, is it happening as planned or were there problems? Where is the non-compliance, and what is the cause of it? Was it simply a case of procurement’s sourcing solutions not being in the hands of the right people at the right time? Today’s technology eliminates these problems.
The ability to capture data and funnel it back into procurement so that the sourcing solution can be re-optimised is the final link in completing closed-loop transportation spend management that elevates companies from reactive to proactive, and finally delivers on the full savings promise without sacrificing quality. This isn’t just a one-way street driven by procurement. The technology also facilitates communication to the shipper from its carriers. Where is the capacity available? What new capabilities should be leveraged? How can a shipper’s carrier base and routing guides be optimised on an ongoing basis? Of course, not sacrificing quality requires being able to measure that quality or performance of your suppliers and trading partners. Procurement technology has evolved there too. Measuring performance is critical to improving it and those improvements lead to cost reductions and greater efficiencies in the end. And how does this all help the Middle East region? Regional governments have clearly outlined – as part of their country visions – a movement towards developing a knowledgebased economy and improving capabilities and skills as part of that development to diversify away from the region’s reliance on oil. The smooth, efficient movement of goods is critical to economic growth. Executing at a low cost allows companies to build savings that can be invested back into the company to achieve greater growth. That, in turn, increases volumes to support profits for the carriers and service providers and their own investments in infrastructure, capacity, and capabilities that will help to provide a better service at a lower cost. Finally, let’s look at the impact of procurement technology on a more global scale. These same techniques that can be applied to transportation procurement will aid companies in their efforts to find sources of raw materials, parts, sub-assemblies, and finished goods in far corners of the world. Optimisation helps companies rapidly evaluate multiple inbound supply chain and sourcing options on a total landed cost basis. Casting that broader net can allow for the region to play a larger role in the global supply chain, ramping up activity at the ports to support a greater flow of goods. The Middle East has a natural position as a critical link in the resulting global supply chain that develops. The region’s fortunes, for many years, have been in lockstep with the markets for oil and gas. With sustained lower prices, economies have been forced to find new areas for growth, and the impact that procurement technology can have may be a surprising enabler of continued growth for the Middle East in the world of global logistics.
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R e p o rt
Ralf Seifert, professor of operations management at IMD, a top-ranked business school based in Switzerland, talks about finding a digital solution to the food waste problem
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he cost of global food waste and loss is estimated to be $940bn a year. For businesses, this represents a significant proportion of shrinkage in retail supply chains and it has a direct impact on companies’ triple bottom lines. There could be a great opportunity here for cost savings and to reduce environmental and social footprints, but making this happen remains a complicated problem, requiring solutions at all levels of the supply chain. Fresh fruit and vegetables are a challenging retail category because of the very short product lifetimes. To identify drivers of spoilage, we examined the supply chain of Migros, Switzerland’s largest grocery retailer with $27.3bn in sales and a market share above 20%. Its fruit and vegetable sales account for more than 10% of total supermarket sales in the country. It’s a highly competitive product group that generates shop flow and requires high availability and specialised infrastructure. Plus, its portfolio must change with the seasons. In terms of sales, best-practice retailers have spoilage levels of between 3% and 5%. Migros is among these best-practice retailers but for such a large operator, even these small spoilage levels have a significant impact on its annual profit in the fresh fruit and vegetables category. Our in-depth analysis was based on roughly half a million data points of 100 fresh products on a day and store basis. It revealed three major drivers for spoilage, which includes excess inventory, order cycles and variation, and longer delivery lead times. The best way to reduce spoilage is to reduce the inventory in stores. A half-day reduction would reduce overall spoilage costs by 40%. Smoothing both store and distribution centre (DC) orders by 50% would improve spoilage costs by 30%. Increasing the order frequency to daily would reduce spoilage costs by 17%. And reducing delivery times by one day in 10% of deliveries could reduce spoilage by 8%. Employee training and incentive schemes can go some way to reducing order cycles and making other improvements in freshness and shrinkage performance. The greatest potential, however, comes from supply chain digitalisation to match demand with supply. We recommend three main areas for digital development to address the major drivers
only after you are assured of the accuracy of the data. Accurate and live POS information can help decrease information lead time, so your supply chain can become more responsive to fluctuations in demand. • Automate orders - Historical data coupled with live POS data create an opportunity to automate orders in real time. This allows companies to overcome issues related to order batching, which often causes excess inventory and spoilage in perishable product supply chains. Automation has a substantial potential here because ordering activities often take up considerable time and resources.
Employee training and incentive schemes can reduce order cycles and make other improvements in freshness and shrinkage performance.” of spoilage we identified in our study, including data management, integrated collaborative forecasting, and product tracking. Data management This is essential for better ordering, establishing adequate inventory levels, and enabling transparency within firms. The longer it takes to get hold of information, the harder it is to create accurate demand forecasts. Here are three steps for digitalising supply chain data: • Get accurate historical data - Highquality demand forecasting depends on this, plus it helps to reduce excessive ordering or unmet demand. This historical data can then be integrated into ordering tools to make ordering easier and to increase transparency. • Use live point-of-sale (POS) data - But
Integrated collaborative forecasting This addresses high order variation caused by rationing and shortage gaming, and long transportation lead times. Integrating data systems for collaborative forecasting increases visibility and reduces the risk of overstock or stock-outs along the supply chain. The benefits of visibility of supply chain partner forecasts can further extend to the physical chain, allowing for shorter delivery lead times because deliveries don’t need to be as flexible. Product tracking This means having digital records for the entry and exit of products at each stage of the supply chain. It can help ensure a first in, first out policy for fresh products, which will decrease inventory age and, therefore reduce shrinkage due to spoilage. Shrinkage rates represent up to 15% of sales in major retailers. Digital supply chain solutions, therefore, provide enormous potential for accurate demand forecasting and better inventory management. However, the improvements do not come for free in this high-paced category. Product yields, volatile prices, fragmented suppliers, specific supply chain configuration, as well as perishability and quality issues, all mean that the value drivers are diverse and category-specific. Before implementing new digital solutions, it is vital to interview individuals along the entire supply chain and analyse existing data to work out what business impact those solutions might have.
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Sup p lie r N e ws Xylem opens office in Riyadh in Saudi Arabia
lobal water technology company, Xylem, announced the opening of a new office in Riyadh, Saudi Arabia. The new office is part of Xylem’s $35mn investment in the Middle East and North Africa (MENA) region, which includes additional resources to help provide localised products, services, and capabilities in key markets throughout the region. It’s Saudi Arabia office is located at Al Annod Tower on King Fahd Road, Riyadh. Vincent Chirouze, regional director, Xylem Middle East and Africa (MEA), said: “The opening of our Saudi Arabia office is an important milestone for our regional investment and supports our long-term strategy of providing sustainable water technology solutions to help solve the region’s water challenges. The new office enables us to be closer to our customers and develop smarter, bespoke solutions that fit their unique needs, which also allows us to increase our capabilities. “The new Saudi Arabia office extends our legacy of providing the same highquality service and products our partners and customers have come to expect from Xylem.” In addition to the Saudi Arabia office, as part of its growth plan, Xylem has invested in several facilities across the region, including a manufacturing plant and rental and services business in Dubai, as well as an office in Doha, Qatar.
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Honeywell launches industrial cyber security product
Honeywell launched a new cyber security solution facilities that protect against USB-borne threats, without the need for complex procedures, that impact operations or industrial personnel. Safdar Akhtar, business development director, Industrial Cyber Security for EMEA and Asia at Honeywell Process Solutions (HPS), said: “The launch of SMX is an important milestone in combatting cyber threats in the region and globally. The Honeywell 2017 Middle East Industrial Cyber Security Summit provides a perfect platform for this important launch, and will help inform industry stakeholders on the latest trends and technologies in industrial cyber security. “With a long-standing presence in the region spanning six decades, we are committed to protecting the safety and reliability of critical infrastructure and deploying advanced industrial cyber security solutions across the region.” Eric Knapp, cyber security chief engineer, HPS, said: “Industrial operators often have hundreds or thousands of employees and dozens of contractors on site every day. Many, if not most, of those rely on USB-removable media to get their jobs done. Plants need solutions that let people work efficiently, but also don’t compromise cyber security and, with it, industrial safety.” Honeywell’s SMX was developed by the company’s cyber security experts based on field experience across global industrial sites and feedback from Honeywell User Group customers. The solutions provide hassle-free, multi-layered protection for managing USB security, letting users simply plug in and check devices for approved use in the facility. Contractors “check-in” their USB drive by plugging it into an SMX Intelligence Gateway. The industrial device analyses files using a variety of techniques included with Honeywell’s Advanced Threat Intelligence Exchange (ATIX), a secure, hybrid-cloud threat analysis service. SMX Client Software installed on plant Windows devices provides another layer of protection, controlling which USB devices can connect, preventing unverified USB removable media drives from being mounted, and stopping unverified files from being accessed. SMX also logs USB device connectivity and file access, providing a valuable audit capability. Knapp said: “For most plants, the proliferation of removable media and USB devices is unavoidable, but the security risks they bring don’t have to be. We know our customers have limited resources to maintain another system, so Honeywell manages SMX for them. SMX never connects to our customers’ process control networks. From a system administration perspective, it’s like it’s not even there.”
Swisslog clinches Best Product award in LogiMat 2017
Condition Monitoring from Swisslog was honoured with the Best Product award in the software, communication, and IT category at the opening ceremony for LogiMAT 2017. Swisslog’s solution concept impressed the jury of scientists and trade journalists, thanks to its substantial contribution towards streamlining processes, saving costs, and increasing productivity in in-house logistics. Condition Monitoring is an easy-to-use plug-in within Swisslog’s intelligent SynQ software and part of its proven Cockpit Manager. The award was presented by Peter Kazander, LogiMAT exhibition director, and Willibald Günther, head of the Institute of Materials Handling, Material Flow and Logistics at Technical University of Munich. Dr Christian Baur, COO of the Swisslog Group and CEO of the warehouse and distribution solutions division, said: “We are very excited about this award and proud to receive it at LogiMAT. This award recognises innovation and quality and has special significance because LogiMAT, as Europe’s largest logistics trade show, is particularly important for us. Furthermore, it is proudly received as we consider software to be a strategic cornerstone of our business and we are working hard to differentiate ourselves in this field. “Condition Monitoring is much more than just an essential tool to precisely and accurately identify critical warehouse elements and prevent unexpected system failures caused by wear and tear. We see advanced data analytics as an important catalyst that will gradually allow intralogistics to move away towards a highly service-driven industry based on performance-oriented pay-per-use business models.” Swisslog’s Condition Monitoring solution is based on the ongoing capture of machine conditions by measuring and analysing physical values such as fluctuations, temperatures, position, and proximity of individual elements and systems. The collected data can be used to identify malfunction-prone critical elements and to draw conclusions about the error rate of individual disciplines and even entire logistics systems. In contrast to traditional preventive maintenance where intact components are routinely replaced with new ones, Condition Monitoring allows maintenance and spare parts provisioning to take place precisely when a critical warehouse element reaches the actual end of its service life.
Eaton launches new modular device range Ireland-based power management company, Eaton, has launched a new modular device range designed for easy installation, commissioning, and replacement. The new MTL SD Modular range provides comprehensive protection from transient surge events up to 20 kA, the highest level of protection currently available for a modular pluggable device which is coupled with the highest packing density on the market, said a statement from the company. With over 50% of premature electronic equipment failures being attributed to surge and maintenance failures, Eaton’s MTL SD Modular range offers complete cost-effective surge protection to valuable instruments and distributed control systems, it said. Roger Highton, MTL process connectivity product line manager, Eaton, said: “The delicate circuits and devices in today’s equipment and systems make their susceptibility to transient surge events much greater. “Underestimating the importance of reliable surge protection devices can be extremely costly if the worst should happen. The MTL SD Modular range is unique in offering 20 kA protection with a module width of just 7 mm, allowing maximum protection of valuable assets in minimal space,” he added. The design of the MTL SD modular device reduces maintenance cost and downtime, as modules can be quickly and easily replaced. The pluggable part is held in place with a simple retention tag and can be removed from its base without de-energising the protected device, saving the user valuable time and complexity. This is achieved using a make-before-break design to ensure uninterrupted loop operation during replacement.
Ducab recruits Emirati nationals at Careers UAE 2017 UAE-based manufacturer of high-quality cables and cabling products, Ducab, conducted spot interviews and offered career opportunities to suitable candidates at this year’s two-day Careers UAE 2017 in Dubai. Riding on the success of the company’s Emiratisation strategy, which has resulted in UAE Nationals making up 70% of the senior management, Ducab looks to further strengthen its numbers with appropriate applicants, said a statement from the company. In line with the Dubai 2021 Plan and the seven-year National Agenda, Ducab aims to support the growth and long term sustainability of UAE’s industrial sector by investing in young emerging local talent, it said. The company engaged with Emirati talent at the event to further the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, to promote and empower UAE nationals in all economic sectors. Khaled Nasser Lootah, board member and chairman of Emiratisation Committee at Ducab, said: “The bold vision set forth by our leadership to diversify our economy puts the spotlight on the non-oil sectors like industry and manufacturing. Building a skilled workforce through the nurturing of local talent plays a key role in ensuring the growth of these sectors. Ducab is committed to contribute significantly to this vision by providing comprehensive training and development opportunities and continually innovating to create an appealing and dynamic work environment.”
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Save t he dat e
The Month Ahead
The key exhibitions, conferences, and seminars coming up this month 9TH GPCA SUPPLY CHAIN CONFERENCE
9-11 May May
Held under the theme ‘Agile and Efficient GCC Supply Chains - The Role of Technology’, the 9th GPCA Supply Chain Conference will offer delegates an exclusive opportunity to explore the benefits of supply chain digitisation in a complex and changing marketplace environment. Attendees will hear from global industry experts about how leading supply chain organisations have leveraged innovative technologies to improve the agility and efficiency of their supply chain operations. Experts will also shed light on the core capabilities required to embark upon a digital transformation journey. AIRPORT SHOW 15 – 17 May Dubai, UAE The Airport Show provides an ideal B2B platform for companies to showcase airport and aviation-related products and services. In 2016, the event gathered 7,166 aviation professionals who networked and sourced their product requirements at the show. More than 300 leading companies from around the world are expected to participate in the 2017 event, introducing their latest product and service offerings to a projected 7,500 attendees. More than 200 hosted buyers and 60 regional aviation authorities are expected to attend. The Airport Show is the perfect place to exhibit or source the latest technology, learn about emerging trends, network with decisionmakers, and get first-hand knowledge about the region’s $170bn airport expansion and modernisation programmes.
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SMART WAREHOUSING AND SUPPLY CHAIN INTEGRATION 16-17 May Dubai, UAE The two-day symposium features critical insights on management and strategic planning of award-winning warehouses, coupled with extensive knowledge on the importance of meeting customer’s satisfaction. The event will dwell into the effectiveness of managing supply chain solutions to reduce cost and risk involved in warehouse management. Some of the main highlights will include tried-andtested methodologies to overcome bottlenecks across various warehousing functions to achieve continuous supply chain improvement. The package also includes a highly interactive setting consisting of case studies, panel discussions and roundtable discussions. Delegates will be taken through a detailed journey that discusses areas pertaining to applicable techniques and automation systems used within a modern warehouse. EMEA SUPPLY CHAIN AND LOGISTICS SUMMIT 19-21 June Barcelona, Spain The last few years have seen supply chains face untold pressures from consumer demands, volatile markets, and political uncertainty. With high internal expectations, it is vital you remain aware of the latest trends, tools, and opportunities to utilise your competitive edge. Bringing together over 600 industry leaders from supply chain for three days of inspiring, relevant, and challenging content, the summit will give its attendees a chance to take stock and plan their next step. With interactive sessions and multiple opportunities to speak directly with your peers, the summit is a unique situation that focuses on the impact you can make today. www.cbnme.com