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S u p p ly c h a i n


Blockchain makes a mark in the logistics arena

DHL understands the Middle East market

India’s tax laws to bring a world of reforms

Connecting trade professionals with industry intelligence

November 2017

Zaid Alqufaidi highlights how ENOC Retail continues to grow in leaps and bounds

Fuelling Change

                                                                  

         

Bespoke Logistics Project of the Year 2017

Domestic Logistics Service Provider of the Year KSA 2017

GCC Supplier Of The Year 2017 KSA Supplier Of The Year 2017

Start 8 | News 18 | Op-ed A focus on the importance of safety in the warehouse


22 | Cover Story: ENOC Retail ENOC Retail is rapidly transforming into a place of the future 26 | Technology Blockchain blooms in the logistics sector

30 | Sustainability Taiwan brings forth its sustainable inventions to the UAE 32 | Generators Diesel-based gensets continue to find favour in the Middle East

22 26


36 | Supply Chain DHL Supply Chain explores prospects in the Middle East market

48 | Viewpoint India’s new tax laws will have a definite impact on the nation’s supply chain network


50 | Report Azur Digital studies the newly launched Noon. com

52 | Supplier News 54 | Diary Logistics News ME | November 2017 | 3

CEO Wissam Younane

Editor’s Note


nnovate or evaporate! These are the exact words of Zaid Alqufaidi from ENOC Retail. And we all can resonate with the fact that if companies don’t innovate, they are bound to fall behind. Our cover story for the November issue talks about one of the UAE’s largest wholly-owned Dubai government company, ENOC, has evolved from a local oil and gas player to an integrated global giant with assets and operations across the energy sector. As the year comes to an end, recent reports have always suggested that within the region, the UAE and Saudi Arabia remain the most attractive targets for logistics investments and easiest markets to operate. Other MENA countries, particularly those in the GCC, such as Qatar, Oman, Kuwait, and Bahrain, along with Morocco, Jordan have also emerged as potential investment destinations. 34 free trade zones, non-existent corporation tax and the offer of full ownership, coupled with unlimited repatriation of profits, makes the UAE a highly appealing business environment for producers and manufacturers alike, as well as to logistics service providers. The growth of transportation and logistics (T&L) in MENA is being driven by government initiatives toward economic diversification from energy-based industries to expansion into other commercial sectors such as trade, export, import, and tourism. This renewed focus

on commercial sectors is paving the way for investments in transport infrastructure, including seaports, airports and major rail initiatives across the region. In the last issue of 2017, we present our readers the biggest story of Logistics News ME – The top 25 CEO Powerlist. The rankings for the list will be decided by our editorial team based on the year-to-date financial performance, ongoing portfolio of projects in the region, and also independent achievements of the ranked chief. I would urge all the chosen logistics companies to be a part of the list and grab a spot to highlight their achievements to our readers.

Managing Director Walid Zok Director Rabih Najm Group Sales Director Joaquim D'Costa +971 50 440 2706

Sales Manager Lionel Matthews

Group Commercial Director Fred Dubery Business Development Director Rabih Naderi +966 50 328 9818

Editor Paromita Dey Reporter Mehak Srivastava Art Director Aaron Sutton Marketing Executive Mark Anthony Monzon Photography Dhananjay Sekhar Poojoori

Paromita Dey Editor @paromitadey1

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On the web Keep up to date with all the latest news, features and much more on our website. 6 | Logistics News ME | November 2017

All rights reserved © 2015. Opinions expressed are solely those of the contributors. Logistics News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Logistics News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Logistics News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by International Printing Press

Re g i on a l N e w s

Regional News An update from around the region

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RTA deploys 50 Tesla cars in Dubai taxi fleet

Dubai Roads and Transport Authority signs agreement with Tesla during World Government Summit 2017, to buy 200 electric vehicles


total of 50 Tesla electric cars have been deployed in the Dubai state taxi fleet, announced Sheikh Ahmed bin Saeed Al Maktoum, chairman of Dubai Supreme Council of Energy, as well as of Dubai Airports, chairman and CEO of Emirates Group, and president of Dubai Civil Aviation Authority. The addition of 50 Tesla electric vehicles to Dubai Taxi Corporation’s (DTC) limousine fleet was launched midSeptember. The vehicles are fitted with several components for self-driving, and are a part of a 200-car deal signed with Tesla in February, Dubai’s Roads and Transport Authority (RTA) directorgeneral Mattar Al Tayer said. Incorporating the cars into the national taxi fleet is part of Dubai’s plans to become one of the smartest cities in the world – and particularly to meet the directives of the Dubai Smart Autonomous Mobility Strategy that aims to convert 25% of total journeys in 8 | Logistics News ME | November 2017

Dubai into driverless journeys by 2030. Al Tayer said: “The RTA has recently taken delivery of 50 Tesla vehicles as part of a deal for 200 vehicles signed last February, on the sidelines of the World Government Summit 2017. Accordingly, 75 vehicles will be supplied in 2018, and 75 others are to be delivered in 2019. The Dubai Taxi Corporation has coordinated with the concerned parties to provide the needed infrastructure to ensure the operation of these vehicles including the provision of 13 electric recharging stations.” He added that the vehicles contracted by the RTA are two models – (S) from Sedan and (X) from SUVs. The (S) model had achieved the highest possible safety rating of electric cars at the time of its launch, the authority said. Tesla opened its first electric vehicle showroom in Dubai, a 1,579sqm retail store and service centre on Sheikh Zayed Road, in July 2017.

Imdaad signs strategic deal with Itqan Global Imdaad, a UAE-based integrated facilities management (FM) solutions provider, has officiated a strategic deal with Itqan Global, a digital transformation enabler that provides cloud solutions for cloud and digital computing systems, to harness the Rosmiman integrated workplace management system (IWMS) technology in the UAE. The agreement was signed on the sidelines of the 11th edition of the FM Expo in Dubai. Rosmiman IWMS is a comprehensive and integrator system for managing real estate projects and maintenance services where the different entities invested in a project, from owners and tenants to technical managers and facilities management service providers, can interact and collaborate at any time. The benefits of using this software system include greater control of real estate and work space projects portfolio, optimised process methodology, and the ability to provide timely business insights and intelligence. Considering the sophisticated FM services provided by Imdaad and its expansion over the years, the technology will increase efficiency of its services and empower clients with greater insights into the day-to-day FM operations of a project, with ongoing support from the local data centre maintained by Itqan Global for Cloud & Digital Computing Systems. Arif Al Yedaiwi, the director for IT and procurement at Imdaad, said: “The wave of technology and innovation has radically transformed all industries and facilities management is not immune to it.” He added: “Our pursuit to becoming one of the leading fully integrated facilities management company in the UAE warrants critical updates to our IT architecture, and the collaboration with Itqan Global for Cloud & Digital Computing Systems to use the Rosmiman IWMS solution is in keeping with our commitment to innovation.”

Gender Diversity

FedEx Express, AmCham encourage women in workplace FedEx Express, a subsidiary of FedEx Corporation and one of the world’s largest express transportation companies, has signed a memorandum of understanding (MoU) with the Women in Business Committee of the American Chamber of Commerce (AmCham) Abu Dhabi, to encourage the development of women in the workplace through the ‘Women Achieve’ initiative. FedEx Express is an existing member of the Women in Business Committee and a corporation committed to workplace equality. The Women Achieve initiative aims at promoting ideals which include aiming to provide a professional organisational environment conducive to the advancement of women; encouraging women to grow through training, mentorship, and more pathways; considering female candidates for new opportunities; supporting female rising stars in their efforts to move into leadership positions; encouraging women to serve on boards; offering fair remuneration, and promoting internship to female candidates. The MoU was signed on behalf of FedEx Express by Jack Muhs, regional president of FedEx Express Middle East, Indian Subcontinent, and Africa (MEISA). Muhs said: “Our company was founded on a people-service-profit philosophy,

Dareen Zoughbi and Jack Muhs sign the MoU

and respect for everyone has always been an everyday business practice. Our diverse workforce, supplier base, and supporting culture all enable FedEx to better serve customers and compete in the global marketplace. We are pleased to join hands with AmCham Abu Dhabi to support the Women Achieve initiative, and help provide more women with the opportunity to pursue the careers of their dreams, without limits.” Sharief Fahmy, chairman of AmCham Abu Dhabi, commented: “Support from

companies such as FedEx Express helps us to achieve the ambitions of our Woman Achieve initiative. We thank FedEx for joining us in this noble cause to develop more supportive environments in which women can grow and thrive in the workplace, whether they’re just starting their careers or working their way up to the top.” FedEx Express has been consistently ranked in the top 10 of the Great Place to Work Institute’s UAE ranking for the past seven years.

Bitesize news

Abu Dhabi Ports welcomed a high-level delegation from Japan headed by Shigehiro Tanaka, director-general for Trade Policy Bureau of Japan, on a tour of KIZAD to showcase the industrial zone’s role in supporting trade development.

Emirates’ $15mn ad campaign, backed by the iconic soundtrack Don’t stop me now by British rock band Queen, aims to inspire travel and promote the airline’s extensive network of global destinations, including its home and hub Dubai.

Dubai Duty Free put its weight behind the Dublin Arabic Film Festival (DAFF) and was the presenting sponsor of the festival for the fourth year consecutively. The film festival was run as a part of the Irish Film Institute (IFI) from October 8-6, 2017.

The Goodyear Tire & Rubber Company has revamped its off-the-road (OTR) tire website, to provide an enriched user experience and help mining, construction, quarry, and port operations discover how Goodyear can help enhance their business.

Logistics News ME | November 2017 | 9

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Emirates adds additional weekly flights to Stockholm, Tunis Emirates announced three additional flights per week to the Swedish capital of Stockholm, starting from December 8, 2017, and one additional flight between Dubai and Tunis starting October 30, 2017, as per the official statement. The three new weekly flights will enhance Sweden’s global long-haul connectivity, offering passengers travelling from Stockholm the chance to reach over 70 Emirates destinations in Asia, Australasia, Africa, and the Middle East. The new Emirates flight EK155 will commence from December 8, departing Dubai at 1500, and arriving in Stockholm Arlanda Airport at 1845. The return flight EK156 will depart from Stockholm at 2110, arriving at Dubai International Airport at 0630 the following day. The timing of the three additional flights provides easier connections between Stockholm and several popular East Asian and African destinations. Travellers can now seamlessly connect, with a short transit through Emirates’ Dubai hub, with popular destinations such as Ho Chi Minh City in Vietnam, Colombo in Sri Lanka, Manila in the Philippines, and Cape Town and Durban in South Africa. Passengers can now also connect to Emirates’ direct flight to Auckland in New Zealand, with travel times to Indian Ocean destinations including Mauritius, the Maldives (Male), and the Seychelles (Mahé),

also benefiting from the improved flight connectivity. The timing of the new flights also makes Dubai itself an even more favourable option for a long weekend or short break, the early morning arrival time allowing travellers from Sweden the whole day to kick start a holiday or short break in the UAE. While providing choice and convenience for both Swedish customers travelling to Dubai and beyond for work or leisure, Emirates’ inbound passenger and cargo operations have consistently made a positive impact

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on Sweden’s tourism, trade, investment, and employment. Keen to build on its already significant economic contribution, Emirates is optimistic that the three extra weekly flights between Dubai and Stockholm will both meet existing demand and stimulate further trade growth and visitor numbers. Meanwhile, the additional Dubai – Tunis flight will be operated every Monday, taking the total to seven weekly flights on the route. The added flight will give passengers in Tunis greater access to Emirates’ global route network, particularly

destinations in the Middle East, GCC, West Asia, Asia Pacific region, and the US, with just one stop in Dubai. The added frequency will also offer importers and exporters an additional 23 tonnes of cargo capacity in each direction. Popular goods carried between Tunis and Dubai include fruits and vegetables, fresh and frozen seafood, electronic equipment, truffles, and dates. Situated on a large Mediterranean Sea gulf, behind the Lake of Tunis and the Port of La Goulette, Tunis is a popular destination for international travellers with its heritage sites and coastal lifestyle. It is renowned for its museums, old souks, and thriving culture. Tourist hot spots include El Djem, known as the walls of the mighty Roman amphitheater; Sidi Bou Said, an artistry spot located on top of a steep cliff, overlooking the Mediterranean Sea; and Carthage, once Rome’s major rival. For tourists seeking a beach escape, Hammamet and Djerba offer beautiful sandy strips of shoreline. Sousse is another key tourist area which receives millions of visitors every year who enjoy its array of hotels, restaurants, nightclubs, casinos, beaches, and sports facilities. Since October 2006, when the first service to Tunis was launched, Emirates has carried more than one million passengers and over 60,000 tonnes of cargo to date. Globally, the airline employs more than 500 Tunisian nationals in a variety of roles across the Emirates Group, including over 200 cabin crew.

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Etihad Group appoints Tony Douglas as new CEO Abu Dhabi-based Etihad Aviation Group, the parent company of Etihad Airways, has appointed Tony Douglas as its new chief executive, as reported by Reuters. Douglas replaces veteran Australian CEO James Hogan, who over 10 years, developed Etihad Airways into an aggressive rival to Dubai’s Emirates and Qatar Airways. Etihad had announced in January that Hogan planned to step down. Douglas will join Etihad in January 2018. He commented on his appointment: “Etihad is a force in global aviation that must continue to adapt and evolve on its own and with industry partners. It is an economic and employment engine for the UAE and the region. With new infrastructure and attractions like the expanded airport, Louvre Abu Dhabi, and Abu Dhabi Global Market, it has a central role in supporting the UAE’s position as a global hub of transportation, tourism, commerce, and culture.” Mohamed Mubarak Fadhel Al Mazrouei, chairman of Etihad Aviation Group, said: “We are delighted to have Tony return to Abu Dhabi to lead Etihad. He has guided the transformation of large organisations in the UAE and the UK, and he understands the UAE and the region. He is also deeply knowledgeable about commercial aviation and keenly familiar with Etihad’s challenges and opportunities in a rapidly changing industry.” The appointment comes as a return to the emirate for Douglas, who was previously CEO of Abu Dhabi Ports (where he led the Khalifa Port and Industrial Zone project) and CEO of Abu Dhabi Airports. Prior to that, Douglas held senior positions with airport operator BAA, where he headed up the Heathrow Terminal 5 project as managing director, before being appointed CEO of Heathrow Airports. He was also chief operating officer and group chief executive designate of construction firm Laing O’Rourke, and has also headed the British ministry’s defence equipment and support department, responsible for procuring and supporting equipment and services for the armed forces.

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King Abdullah Port signs operational agreement with AMSteel

Saudi Arabia’s King Abdullah Port has signed an agreement with AMSteel, a company specialised in operating ports and handling steel shipments, to operate its first bulk and general cargo terminal berth for a period of 25 years. The management of King Abdullah Port expects the completion of the first phase of bulk and general cargo terminals with a capacity of three million tonnes in the second quarter of 2018. Strategically located on the Red Sea coast on one of the world’s busiest maritime shipping lanes and with direct access to extensive transportation networks and urban centers, King Abdullah Port is the first fully privately owned, developed, and operated commercial port in Saudi Arabia. Eng Abdullah M Hameedadin, managing director of the Ports Development Company, owner and developer of King Abdullah Port, said: “Signing this agreement comes within the framework of developing our capabilities in the field of bulk and general cargo. It will enable us to actively contribute to promoting this industry due to its economic benefits and its support for the development journey in the Kingdom.” He added: “We, at King Abdullah Port, are keen to cooperate with entities that are experienced and knowledgeable in order to enable ourselves to develop business at the port and contribute to the development of the maritime

transport industry in the Kingdom, in line with the objectives of Vision 2030.” Hassan Al-Attas, chairman of AMSteel, commented: “Since its establishment in 2015, AMSteel has been characterised by its outstanding successes in a short period of time, through its provision of clearance, logistics, storage, and door-to-door shipping services. It has also managed to win the trust of major customers both globally and locally, all seeking to benefit from the company’s services and experience in several projects.” King Abdullah Port has been able to significantly develop its capacities, raising its annual throughput to 1.4 million twenty-foot equivalent unit (TEU) by the end of 2016. Additionally, the infrastructure’s annual capacity has reached four million TEU. King Abdullah Port, which is owned by the Ports Development Company, is the first privately owned, developed and operated port in the Kingdom. The port occupies a total area of 17,000sqm, and enjoys close proximity to King Abdullah Economic City’s Industrial Valley and the bonded zone. The port makes an increasingly important contribution to the Kingdom’s regional and global role in trade, logistics, and shipping. Once fully built, King Abdullah Port will be able to handle 20 million containers (TEU), 1.5 million vehicles (CEU), and 15 million tonnes of clean bulk cargo every year.

The big Picture

The team of Agility Iraq at the launch of the Center of Excellence, a training facility at the Rumaila Energy Park in southern Iraq. In partnership with Strategic Analytics Team (SAT), the centre offers training courses for the local workforce in the oil and gas industry, led by internationally accredited trainers. Acquisition

Gulf Pinnacle acquires 60% stake in Century Express Courier Gulf Pinnacle Logistics (GPL), a logistics company with a focus on the MENA-SEA region, announced that it has acquired a 60% stake in Century Express Courier Services as part of its AED1.2bn investment plan. Established in May 2014, GPL is a logistics and transportation company advised by Regulus Capital. The company owns majority stakes in four assets involved in warehousing, CFS operations, students bus transportation, and courier services. Shailesh Dash, chairman of Gulf Pinnacle Logistics, said: “This acquisition augments GPL’s concerted efforts in achieving its goal of becoming a diversified logistics company in addition to serving as a delivery base and capitalising on the e-commerce boom in the MENA region.” He added: “Complementing GPL’s ambitious vision and growth plans, this acquisition, which is part of a AED1.2bn investment plan for the next six years, has further strengthened the company’s positioning in the logistics

industry and expanded its operations. We are confident about the growth prospects of Century Express and believe in our capabilities to grow the company into one of the leading lastmile delivery companies in the MENA region.” Headquartered in the UAE, Century Express Courier Services caters to the domestic and international markets through its own fleet and a network of agents delivering shipments to more

than 100 countries. Century Express has an estimated capacity to deliver 715,000 letters and parcels per annum through its own fleet of vehicles. The company highlights same-day and next-day express delivery services as its unique selling point. Najeeb Kabeer, partner and managing director of Century Express Courier Services, said: “With the upsurge in e-commerce activity in the region and more so in the UAE and Saudi Arabia, the prospects for the courier segment are extremely positive. We are thrilled to have partnered with Gulf Pinnacle Logistics, and are excited about the various positive changes and performance-enhancement initiatives that GPL will be implementing over the course of the next five years. We look forward to working closely with the GPL team and contributing to each other’s success and growth.” Regulus Capital, a specialised management consultancy and advisory firm, was the exclusive advisor to GPL on this acquisition. Logistics News ME | November 2017 | 13

Re g i on a l N e w s

Bahri, Koninklijke Bunge form dry bulk joint venture Bahri, a global transportation and logistics company, and Koninklijke Bunge, a wholly-owned subsidiary of Bunge Limited, a global agribusiness and food company, have inaugurated the offices of their joint venture BahriBunge Dry Bulk in Dubai. In celebration of the occasion and reveal of the new company’s logo, Abdulrahman M. Al-Mofadhi, chairman of Bahri, hosted a special ceremony at Burj Al Arab in the presence of several Bahri board members, top industry highlevel executives, representatives from Bunge, and heads of Bahri’s business units, in addition to a number of officials representing major multinational companies. With plans to ship over five million tonnes of dry bulk commodities in its first year, the new company will step up the import and export of dry bulk goods and ocean freight material in and out of the Middle East while strengthening the operations of Bahri Dry Bulk, a business unit within Bahri. BahriBunge Dry Bulk and the vessels chartered under its domain will provide exclusive freight transportation services to international customers, with a key focus on mobility of freight in the Middle East. As part of the joint venture agreement signed earlier, Bahri Dry Bulk will own 60% of the shares in the venture and Bunge will own the remaining 40%. Headquartered in Dubai, the new company aims to gradually increase operations for the volume figures to touch double-digits, said a statement by the company. The joint venture, which is financed pro rata by Bahri Dry Bulk and Bunge, will charter and commercially operate SUPRAMAX and/or PANAMAX (and/or other suitably-sized dry bulk vessels) initially from the fleet currently owned or managed by Bahri Dry Bulk, and subsequently from third parties. Al-Mofadhi said: “The launch of BahriBunge Dry Bulk joint venture marks an important milestone for our company. Bahri’s invaluable insights of the Middle East markets along with Bunge’s dynamics of the freight industry globally will help BahriBunge Dry Bulk emerge as a reliable and robust carrier especially for the trade of grains and other agricultural commodities. I am confident that this new joint venture is formed in the right direction to achieve Saudi Vision 2030 and strengthen our commitment towards harnessing existing relations and forging new ones.” Nezar Banabeela, chairman of BahriBunge Dry Bulk, said: “I congratulate both Bahri Dry Bulk and Bunge offices on this strategic alliance. Launching BahriBunge Dry Bulk and adding state-of-the-art vessels to the existing fleet will go a long way in streamlining the flow of dry bulk in the region and also contribute tremendously in executing trade in a seamless and efficient manner. Bunge brings notable success in commodity trading and shipment of dry bulk, and its operational strength will be crucial in serving the growing demand for dry goods and reliable freight services in the region. This is also in line with the ever-growing appetite to boost our regional footprint and nurture relations with global companies.”

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Sri Lankan seafood exporters benefit from Emirates SkyCargo’s Europe network

Sri Lanka’s edible fish exporters are experiencing a boom following the resumption of shipments to Europe, with Emirates SkyCargo playing a key role in helping them capitalise on this resurgence. The freight division of the award-winning airline reports that it is currently transporting about 100 tonnes of edible fish a week from Colombo to markets in Europe and the USA, a noteworthy increase over export volumes that were prevailing before the implementation of the 15-month suspension of exports to Europe in 2015. In the second half of 2016 alone, Emirates SkyCargo transported more than 2,400 tonnes of edible fish from Sri Lanka, double the volume it had transported in the corresponding six months of the previous year. The cargo consisted of tuna in fresh, chilled, and frozen forms, shrimp, prawns, crabs, lobster, fish maws, sea cucumbers, cuttlefish, squid, and sprats to the UK, France, Italy, Japan, Netherlands, and the USA. The export of Sri Lankan fishery products to the European Union resumed in June 2016 and grew by 20% in the year that followed. European markets account

for more than 60% of the country’s fish exports, valued at approximately $110mn, benefiting thousands of fishermen and their families. Kapila Santhapriya, cargo manager for Sri Lanka and Maldives, Emirates, said: “The support Emirates SkyCargo provides Sri Lanka’s seafood export industry reflects our wider commitment to the national economy. The many innovative facilities developed by Emirates SkyCargo for the transport of perishables including temperature-sensitive seafood combined with our four daily flights from Colombo to Dubai and our global destination network of over 155 cities across 84 countries, have made Emirates SkyCargo the market leader and most trusted service provider for perishable cargo in the country.” Of particular relevance to edible fish exporters is Emirates Fresh – Emirates SkyCargo’s suite of solutions that help maintain the freshness of perishables and fresh consumables during transportation. Emirates Fresh includes services such as prioritised ground handling as well as the use of the Emirates SkyFresh Ventilated Cool Dolly.


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Safety first

Maji Monday, director of HSSEQ and maintenance at RSA Logistics, talks about the importance of upholding a safe working environment in the warehouse


n the logistics industry, where each day consists of a choreographed set of activities involving personnel, material goods, and infrastructure, safety is paramount for general wellbeing as well as for productivity. For any supply chain organisation to succeed at maintaining a well-oiled and safe workplace, it has to transcend beyond a mechanical set of safety-based activities to make safety a living and breathing part of its culture. Critical for success is taking a holistic approach when implementing the right system. Firstly, policies and procedures establish a sound foundation. Then, a continuous process of learning increases awareness on hazards and their control measures. Taking steps to inculcate safety into everyday behaviour infuses it into the organisation’s culture. And lastly, continuous monitoring ensures effectiveness.

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Harnessing the power of technology to facilitate any one of these steps can catapult your efforts significantly. There are several standard policies and measures that establish the framework for a robust and safe workplace. These include implementing a personal protective equipment (PPE) policy that is strictly adhered to on the floor. Conducting emergency drills on a regular basis, and periodically inspecting firefighting installations and systems for their effectiveness, serve to ensure that the ingredients for a safe environment are up-to-date and functional. Measures within the warehousing facility can prevent disaster, such as installing water sprinklers that activate automatically if the temperature exceeds a certain degree centigrade. Manual call points (MCP) in the warehouse facility to raise the alarm in case of any emergency

further reinforce these efforts. Preventive maintenance of the emergency equipment through authorised third-party vendors is also vital. For organisations that handle dangerous goods, safety procedures must be adhered to all the more. Safety data sheets (SDSs), formerly known as material safety data sheets or MSDSs, should be reviewed for all chemical products—hazardous or non-hazardous— before accepting the shipment. The handling of hazardous chemicals must exclusively be conducted by those personnel who have certified training for these types of materials, specifically known as chemical handlers. Safe chemical handling standard operating procedures (SOPs) must be implemented on the floor, and chemical spill drills regularly conducted to improve the emergency response team’s reaction time during emergencies.

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For organisations that offer temperaturecontrolled services for the storage and transportation of food products, several steps should be taken to maintain the quality and safety of goods, which include continuous monitoring of the temperature of the cold chambers, plus record keeping of the temperatures through onsite checklists; preventive maintenance of equipment such as chillers; regular calibration of the equipment and record keeping; contingency planning for all the emergencies such as total black out; acquiring certifications such as HACCP (Hazard Analysis and Critical Control Point), ISO 22000 food safety management system; and most importantly, deploying only trained staff for operations. Technology innovation is an important element to automate processes that save manpower and reduce error. In restricted access areas like warehouses, where maintaining the privacy and safety of customer products is the responsibility of the logistics company, it is essential to use state-of-the art equipment to provide real-time visibility of the goods, and to track movements in and out of the premises. Key processes enabled by technology include automated visitor, vehicle, and product logging, as well as monitoring advanced CCTV to secure the property. For systems to run smoothly, cooperation is required from the personnel handling daily operations, who need to truly believe in the importance of these measures. Ongoing education is crucial for this, and must be conducted in a systematic, as opposed to ad-hoc, manner. Organisations must prepare a workers’ training matrix for the calendar year that should typically include three types of trainings: • Generic or basic safety trainings, mainly covering the hazard communication program, personal protective equipment and awareness, accident/incident reporting, basic firefighting, site safety procedures etc. • Task specific training, mainly covering SOPs such as loading/unloading of cargo from different vehicles, stacking/de-stacking of the cargo using MHE’s, handling quarantine stock in warehouse, handling of hand and power tools etc. • Organisations that handle chemicals should have a third activity— risk specific trainings, such as the golden rules for chemical handling, chemical spill handling, drum handling, chemical compatibility, manual handling etc. Perhaps the most effective approach to ensuring safety is to drive the philosophy into the culture of the organisation. This will have a foundational effect on the actions of

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For any supply chain organisation to succeed at maintaining a well-oiled and safe workplace, it has to transcend beyond a mechanical set of safety-based activities to make safety a living and breathing part of its culture.” Maji Monday, RSA Logistics

individuals resulting in better and sustained outcomes. Ongoing campaigns such as behaviour based safety (BBS) are established methods of using positive reinforcement to change unsafe individual behaviours and reinforce safe behaviours. Behaviour-based safety is a safety management system that specifies exactly which behaviours are required from each employee. These behaviours are geared toward a safer work environment. The system must have controls in place that will measure if these behaviours exist as a routine element in the work environment. Acceptable behaviours must be positively reinforced frequently and immediately as the behaviour occurs. By motivating the employees towards a proactive approach through initiatives such as near-miss reporting and safety suggestion campaigns, individuals feel more invested as active participants in the culture of safety. Once the framework is in place, and there’s a culture of continuous learning and values established in the organisation, the last measure is to determine and measure the efficacy of all the efforts. It is essential to monitor continuously the effectiveness of training on the floor through the safety audits and inspection, as well as management walkthroughs that allow opportunities for feedback and corrective action. Achieving integrated management systems (ISO 9001, 14001 & OHSAS 18001) accredited is also crucial for the ongoing success of these initiatives in upholding safety, and will go a long way in recognising the efforts of the organisation and its personnel.

C ov e r Sto ry

s e m i T e h T Changing with

Zaid Alqufaidi, managing director of ENOC Retail, talks to Mehak Srivastava about ENOC’s journey and its mission to keep up with the evolution of technology 22 | Logistics News ME | November 2017


keptics could have never believed that a desert could one day house luxury hotels, shopping malls, and skyscrapers that kissed the skies. Dubai is one of the most technologically advanced and modern cities not just regionally but globally. Despite the dry climate and other adverse conditions, Dubai is significantly ahead in terms of economic development compared to mega-cities of other powerful countries. The history of Dubai can be divided into two periods: before and after discovery of oil reserves. Prior to the unearthing of oil in Dubai, trade was restricted to dates, camels, and pearls. In 1966, with the uncovering of the first oil reserve, Fateh, Dubai was embossed into the world map as an emerging economy. This gradually attracted foreigners—both visitors and residents. Today, Dubai is unrecognisable from its early days. The Emirates National Oil Company (ENOC) was first established in 1993 by the Dubai government to promote petrol and petroleum products, both within and outside Dubai, with the first refinery being set up in 1999. But ENOC Group’s intricate story goes back further than its establishment date. The company traces its history to 1974, when the earliest subsidiary of the current ENOC Group called CALGAS Bottling Company (which changed its name to Emirates Gas in 1981) was formed to distribute liquefied petroleum gas. The operations of the company were boosted in 1976 when the government established a cylinder factory known as the Cylingas Company. This was followed by the establishment of the Dubai Natural Gas Company (DUGAS) in 1977, which saw the construction of a gas plant that increased the government’s production capacity of natural gas. 1980 saw the formation of the Emirates Bunkering and Bitumen Company (EBBCO); they eventually ventured into retail products and changed their name to Emirates Petroleum Products Company (EPPCO) in 1988. These four companies then came together to form the ENOC Group, a wholly-owned Government of Dubai company. Over the past 30 years, the ENOC Group has evolved from a local oil and gas player to an integrated global giant with assets and operations across the energy sector value chain. Servicing thousands of customers in over 60 markets, the group employs a workforce of over 10,000 employees and is deploying its world-class customer service, latest innovations and technologies, and best practices to empower the UAE’s social and economic development. ENOC has established a solid presence in both the energy business, as well as in relat-

ed fields and subsidiary enterprises, with business spread over not just in the UAE, but also Saudi Arabia, Djibouti, Morocco, Singapore, and Turkmenistan. ENOC manages and operates 116 ENOC and EPPCO service stations in the UAE, reaching an estimated 90 million customers each year. Zaid Alqufaidi, managing director of ENOC Retail, comments: “We like to call them service stations, not gas stations, because they’re not only selling just gasoline, but are also providing several amenities to the customers. We currently operate 116 service stations across the UAE, 17 of which are in the North-

ern Emirates. We’d initially announced plans at the end of 2015 to construct 54 additional stations by 2020. So far, we’ve built six stations and have 48 more to go.” ENOC’s highest selling product is Special ULG 95, with retail sales of approximately 1.4 million gallons per day. Fuel deliveries are carried out 24/7, and each site receives two to four deliveries of 10,000 gallons to avoid the risk of interrupting supplies. Aviation ENOC has progressively augmented its jet fuel supply infrastructure to support Dubai Interna-

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C ov e r Sto ry

tional Airport’s growth over the years. In 1998, the first jet fuel pipeline of a capacity of 6,000cbm per day was commissioned, later augmenting the pipeline to 8,800cbm per day. A second pipeline along with a jet fuel terminal was commissioned in 2015 to provide an additional capacity of approximately 18,000cbm per day. With the launch of Dubai South, another pipeline has been planned to feed the new international airport. Alqufaidi says: “ENOC has been delegated to meet the energy needs of the emirate of Dubai. By energy I mean the liquid fuel, which goes into the powerhouses, but most of it actually goes to the aviation industry. Dubai International Airport stands as the highest, and is the number one when it comes to fuel consumption, with more than 83 million passengers recorded in 2016.” Adapting and evolving Alqufaidi recalls: “A few years back, I was in His Highness Sheikh Mohammed’s majlis, and he threw a question at the audience. He asked: Do you know how many bridges are there in Dubai? And all we could think of was Maktoum, Garhoud, and the floating bridge. He then said that they were planning to have 70 bridges in Dubai. “I could not comprehend where the 70 bridges would come from. Because for me, a bridge is the one that runs over water, not the overpasses or flyovers. And naturally, the Dubai Creek isn’t that big to accommodate 70 bridges. “But he is a visionary. He knew that he’d be building the water canal, and bridges would be passing on top of these. Dubai has transformed today. And the more developments that came about, the more I understood the extent to which this was going to impact our logistics operation, particularly because of the weight restrictions on the bridges.” ENOC runs its own fleet of vehicles, consisting of more than 50 tankers, each of which weigh nearly 14 tonnes when empty. Their weight doubles when filled with the product. Most bridges have restrictions when it comes to weight and height of heavy vehicles, and Zaid Alqufaidi was right: it would certainly impact their business and productivity. “That’s when we took a major decision to convert our fleet from steel tankers to aluminum tankers. And that was a first in the region. We went on to connect with various suppliers from Europe, US, Southeast Asia, to both work and learn as well, since we have zero experience with aluminum tankers. We came up with a country specification for the UAE and started replacing our existing tank-

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ers. We have a replacement policy in our company for all our tankers, once they reach a certain age. Sure enough, today all our fleet is aluminum tankers. And this has brought their weight down to 50%. But the weight was just one aspect of it. It has also made our service more efficient, because we’re now driving lighter tankers. It has cut down our fuel costs and reduced the wear and tear of the tires. This is something I’m really proud of.” ENOC further introduced modifications to its fleet to enhance the efficiency and operational safety. Vibrating seats and facial recognition cameras monitor truck drivers to ensure they are not drowsy. Automatic railing on the tanker catwalk ensures that the sites in-charge can safely check the tanker for excess product, while back cameras and brighter lights guarantee better operation of the vehicle. ENOC distributes two categories of product— white and black. The white product consists of gasoline and diesel, while the black product is the fuel oil and bitumen. The bitumen and the fuel oil is given to a third party to deliver because they require special skills and trucks. Fuel oil goes to the bunkering customers, i.e., the ships, while the bitumen goes to the road contractors.

“We believe that clean package means clean product,” says Alqufaidi. “As the head of retail, I ensure that our tankers are always clean because they carry our brand. We have given clear instructions that the trucks need to be washed before they leave the terminals. “I remember we once received a call saying that there was a leak in one of our tankers while they were on the road. But it was actually just the water from the wash they’d just received, splashing off the back of the truck!” Sustainability and innovation “I believe that if you don’t innovate, you evaporate,” says Alqufaidi. “Innovation has always been on the forefront of every process and business that we do, aiming to be creative. As a part of our company policy, we’re working closely (with the government) to achieve the Dubai plan of a smart sustainable city.” During the Water, Energy, Technology and Environment Exhibition (WETEX) 2017, ENOC announced that all future ENOC service stations will be powered by solar energy to support the UAE’s long-term strategy to target an energy mix that combines renewable, nuclear, and clean energy sources to meet the country’s economic requirements and environmen-

We like to call them service stations, not gas stations, because they’re not only selling just gasoline, but are also providing several amenities to the customers.”

tal goals. The upcoming 48 stations are slated to be solar powered. Alqufaidi says: “The solar photovoltaic (PV) panels on the roof of the canopy can produce a peak capacity of 120kWh energy on an ideal day, generating approximately 30% more than the average energy required to run the station. The excess power generated is transmitted back to DEWA’s main grid through a DEWA solar metre that tracks the power injected to the power grid. This is a significant step in our journey to support the government’s vision to cut CO2 emissions by 70% by 2050.” The vapour recovery system installed by ENOC is another step in the right direction for the company. Petrol contains volatile organic compounds (VOCs) that evaporate in storage tanks. During unloading of petrol to an underground storage tank or refueling of a vehicle, petrol vapour in the tank will be displaced by the incoming petrol. Unless controlled, the petrol vapour scatters into the atmosphere. Major harmful effects of VOCs from petrol filling stations include smog, potential health risk to the public as it contains benzene, a carcinogen, and a nuisance to people in the vicinity. A vapour recovery system helps to collect petrol va-

pour released during unloading and refueling back to the petrol tanker and underground storage tank, respectively. The service stations utilise LED lights, and variable refrigerant flow (VRF) technology for the air conditioning system, which saves 35% energy as compared to the conventional system. ENOC is also pushing for a hybrid fleet, as well as incorporating the use of compressed natural gas (CNG). Digitilisation ENOC offers complete digitalised services at all its refueling stations. These include Vehicle Identification Pass (ViP), cashless and cardless payment facility for refuelling, the PIN-less and paperless debit and credit card transactions at ENOC’s service stations, and ENOCPay – a service platform that unifies all current and future technologies to allow for easy cardless and cashless payments. Alqufaidi states: “Remember, I don’t like to call them gas stations or petrol stations. I like to call them service stations, because today people come to our service stations not to just get fuel, but to procure and buy from our convenience stores, and to avail services such as mobile top-ups, Salik, bill payments,

and even purchasing tickets for budget airlines like flydubai.” In a partnership with the Roads and Transport Authority of Dubai (RTA), ENOC announced in September 2017 that customers could now use their NoL cards to pay for all products and services across ENOC’s entire retail network, which includes tap-and-pay for fuel, automotive services, and pay for purchases at ZOOM, Pronto, and Paavo’s Pizza. ENOC has 221 ZOOM outlets that operate across metro stations, ENOC service stations, as well as standalone stores such as those on Sheikh Zayed Road. Alqufaidi explains: “On the retail front, we are mandated to build additional service stations to meet the demand for the future. We know Expo 2020 is just around the corner. Millions of visitors are expected, and nearly five million more people are expected to reside in Dubai by 2030. So, there will always be demand for our services. We are continuously building service stations, designing them to be the most efficient and most environmentfriendly service stations. “It’s been an exciting journey, all these years. We’ve seen growth and we’ve seen drops. Fuel consumption has dropped in the past few years, a major factor being alternatives such as the metro. So that has taken a lot of our load, and we recognise that.” In September 2017, RTA had announced that the Dubai Metro had crossed the one billion rider mark in eight years of service. Furthermore, a contract was signed between Dubai Taxi Corporation (DTC) and RTA for 554 more hybrid taxis to curb the pollution from vehicle exhausts. By the end of 2017, the DTC targets to increase the proportion of hybrid vehicles to 17% of its taxi fleet. Alqufaidi remarks: “There are a lot of challenges in the business—alternative fuels, electrical or hybrid cars, and autonomous vehicles. People say that these things create challenges for our sustainability. Perhaps on the retail aspect of it. But if I look at the holistic and overall view of the ENOC Group, hydrocarbons will always have a need. With us investing in a huge refinery, we can always adjust our business to provide more jet fuel because there will be growth in that sector. We have already begun collaborations with DEWA on storing electric chargers in our stations. Once the need arises, we can convert these assets into a service for the cars of the future. “Technology is just unbelievable, and it’s helping us a lot. We’re talking about the fourth industrial revolution, where technology is going to have a serious impact on the way we do things. And I believe that even our industry has gone through that revolution.”

Logistics News ME | November 2017 | 25

T e ch n o lo gy

The emerging beast Blockchain has the potential of being as big as the internet itself; Mehak Srivastava examines how the quiescent beast is picking up pace in the logistics sector


he very concept of blockchain first came to life when Satoshi Nakamoto, the elusive and so far unidentified creator of bitcoin, created a “purely peer-to-peer version of electronic cash”, as he put it in a paper published in 2008. To work as cash, bitcoin had to be able to change hands without being diverted into the wrong account and to be incapable of being spent twice by the same person. Iqbal Alikhan, program director, blockchain

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and innovations at IBM, explains: “According to Stanford University’s whitepaper, estimates of disruption and lack of visibility in the supply chain are around $300bn globally. To achieve a better rate of speed and agility, companies face pressure to improve demand forecasting, reduce transportation costs, reduce out-of-stocks, and ensure high levels of customer satisfaction. This approach can only be accomplished by collaboration between all parties. However, in traditional supply chains, data about these transactions

is still paper-based or uses tools such as Excel, e-mail, or keying in on specialised portals. They often need to be reconciled because of different versions being shared by various parties at different points in time.” This is where the concept of a shared ledger comes into play. As explained by The Economist, this distributed ledger (or blockchain) is replicated on thousands of computers, referred to as nodes, around the world and is publicly available. It is open for eve-

Iqbal Alikhan, IBM Joe Pindar, Gemalto

ryone to see, and yet it is also trustworthy and secure. This is guaranteed by the mixture of calculated intricacy and computational power built into its ‘consensus mechanism’—the process by which the nodes agree on how to update the blockchain in the light of bitcoin transfers from one person to another. Most of the data in the blockchain are about bitcoin. But they do not have to be. As The Economist clarifies, Nakamoto built an open platform: a distributed system whose workings are open to examination and elaboration. The paragon of such platforms is the Internet itself; other examples include operating systems like Android or Windows. Applications that depend on basic features of the blockchain can thus be developed without asking anybody for permission or paying anyone for the privilege. Since its grand entrance, blockchain technology has had an impact on several industries. Alikhan says: “The future of blockchain looks very promising with commercial solutions rapidly being developed and deployed across the global banking and financial industries, at a pace

that is dramatically faster than initially expected. At IBM, we believe that blockchain will do for business what the Internet did for information.” IBM is working closely with the Smart Dubai office to create a paperless, blockchain-powered government by 2020, as announced by HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai. Joe Pindar, director of strategy, identity and data protection at Gemalto, remarks: “We are consistently seeing more and more use cases around supply chain optimisation in numerous verticals like the pharmaceutical, agriculture, and food industry. Blockchain fits well here, because it addresses the four qualifying questions that are often answered ‘yes’ in supply-chain operations: Are there more than three parties involved? Is there an established business process? Is it important that the data being exchanged is trusted? Would automation improve the process? Being able to have an end-to-end supply chain run on blockchain brings efficiency, costsavings, and transparency.” Financial technology was the first to start

adopting blockchain, but it has slowly crept into the ever-changing, ever-adapting world of logistics. Ahmed Helmy, director of advanced solution architect, international markets at Avaya International, says: “Significant rise of cryptocurrencies has already began affecting the industry. One example is the formation of Blockchain in Trucking Alliance (BiTA). The alliance, aimed at developing standards and methods of blockchain implementation for the freight industry, owed their launch to cryptocurrencies’ proven abilities to solve some of the industry’s most pressing concerns around payments and transparency. “Blockchain applications are now pegged to be used in tomorrow’s industry solutions, driven by today’s need to transfer real-time data into actionable insight, to compete both locally and on a global scale.” Towards the end of 2016, the Port of Rotterdam (PoRint), Europe’s largest shipping port, took part in a blockchain consortium focusing on logistics. The project involved more than 15 public and private sector companies based in

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T e ch n o lo gy

Ahmed Helmy, Avaya International

the Netherlands, coming together to design and develop applications for blockchain technology in the logistics sector. According to the founders, their blockchain project will stand out from the rest because of its scale in the logistics chain. In more recent news, PoRint established a research lab dedicated to blockchain, called ‘BlockLab’, to investigate blockchain’s potential in organising port logistics and cargo flows more efficiently, besides studying the technology’s role in another sectors as well, such as energy. Ali Merji, research director at Gartner Industry Advisory Services - banking and investment, says: “Most supply chain management (SCM) related blockchain initiatives globally are nascent, with solutions in early stages of development. However, SCM is a ripe territory for blockchain concepts because of the distributed, multi-enterprise nature of complex global value chains that routinely conduct business between multiple parties.” In August 2017, Marine Transport International (MTI), in conjunction with Agility Sciences, released a whitepaper detailing the deployment of their ‘container streams system’ in a supply chain environment. The project, which has connected supplier, shipper, load point, customs, and terminal on a shared blockchain ledger, has far reaching consequences for the logistics industry as it seeks new ways to improve security and profitability. All parties involved in the supply chain would benefit from automated data flows, as the system allows complete interoperability of data sources, even including legacy systems. Merji explains: “Currently, costly and burdensome overheads are built into certain processes,

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Ali Merji, Gartner

such as trade finance and product traceability, to ensure the integrity of transactions. Blockchain technologies offers promising opportunities to address those issues.” So how big is blockchain technology currently? Helmy clarifies: “Regional leaders are currently assessing the use of blockchain for use within their operations, yet understand that blockchain technology is still nascent. The actual deployment of this technology is complex in nature and requires a multitude of different technology skillsets.” Alikhan adds: “According to recent studies, 15% of banks and 14% of financial institutions that were surveyed by IBM intend to implement full-scale, commercial blockchain solutions in 2017. Mass adoption isn’t that far behind, with roughly 65% of banks expecting to have blockchain solutions in production in the next few years.” One of the key advantages of blockchain is that it is much more secure than traditional IT solutions. A relatively recent trend in lo-

gistics is fictitious pickups. These occur when frauds show up at a shipper’s dock, provide fabricated insurance documents, DOT numbers for trucks, and pickup documentation. It is argued that blockchain could help prevent these kinds of thefts. Merji argues: “Blockchain is not immune to cyber-attacks or fraud. Initial blockchain deployments such as bitcoin have proven to be quite resilient. However, the burden of security has moved from the network to the endpoints that are writing to the blockchain. Most recent attacks demonstrate how attackers search for vulnerabilities in ancillary system components, such as operating systems, networking protocols, and some security-related areas—key management, protection, and distribution.” Helmy agrees. He says: “The immutability of blockchain data and the use of cryptographic algorithms that mathematically hash the data or information that is stored onto the blockchain offers a more resounding security benefit. Yet security concerns remain, as long as bad actors continue to exploit design or programming errors.” Pindar adds: “Blockchain is a decentralised approach but it doesn’t implicitly mean secure. It provides efficiency but needs security mechanisms especially in the enterprise space.” Dubai is known for being the trailblazer when it comes to technological innovation. In February 2016, Dubai announced the Global Blockchain Council consisting of a wide range of members, including government entities, leading UAE-based banks, blockchain technology firms, and international companies such as IBM. This announcement was followed by the creation of Dubai Future Accelerators, a program that ‘brings together the best companies, entrepreneurs and government entities, who understand global challenges and invest in breakthrough technologies’. Following Sheikh Hamdan’s Dubai Blockchain Strategy announcement in October 2016 as a part of Smart Dubai’s initiatives, the Dubai Government is recognising blockchain as the next step in digital transformation of the public and private sector. During GITEX 2017, the Dubai Land Department (DLD) announced plans to become the world’s first government entity to adopt blockchain technology. This will include creating a secure database that records all real estate contracts, including lease registrations, and links them with the Dubai Electricity and Water Authority (DEWA), the telecommunications system, and various property-related bills. Dubai will be pioneering the application of new technology for cities, and sharing it with the world. When successful, Dubai will be the first blockchain powered government, driving the future economy.

S u sta inabil ity

Parallel goals TAITRA held a smart energy seminar in Dubai to bring forth Taiwanese products that would help the emirate reach its infrastructural sustainability goals; Mehak Srivastava finds out more


aiwan External Trade Development Council (TAITRA) has always been instrumental in promoting foreign trade. Founded in 1970 to help promote foreign trade, TAITRA is said to be the foremost non-profit trade promotion organisation in Taiwan. Jointly sponsored by the government, industry associations, and several commercial organisations, TAITRA assists Taiwan businesses and manufacturers with reinforcing their international competitiveness and in coping with the challenges they face in foreign markets. Suo-Hang Chuang, the vice chairman of TAITRA, comments: “External trade creates about 90% of the revenue for Taiwan. Nearly $510bn. Which is a lot!” TAITRA boasts a well-coordinated trade

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promotion and information network of over 1,200 trained specialists stationed throughout its Taipei headquarters, four local branch offices in Hsinchu, Taichung, Tainan, and Kaohsiung, and over 60 overseas branch offices worldwide. Together with its sister organisations Taiwan Trade Centre (TTC) and Taipei World Trade Centre (TWTC), TAITRA continues to do everything possible, to adapt its trade promotion strategies to the changing international trends and conditions. Chuang adds: “We face heavy challenges, especially in the form of competition from China. Hence, to survive, we heavily promote external trade relations. We realise that trade is the foundation for peace and prosperity.” Taiwan faces a dire lack of energy resources and highly depends on import. It remains a top

priority for the country to develop clean, sustainable, and independent energy, and to achieve balance when it comes to energy security, environmental protection, and industrial competitiveness, and reduce CO2 emissions through various strategies. Taiwan relies on imports for most of its energy needs, which leaves the island’s energy supply vulnerable to external disruption. To reduce this dependence, the Ministry of Economic Affairs’ Bureau of Energy in Taiwan has been actively promoting energy research at several universities since the 1990s. In its mission for a greener future, TAITRA recently held a smart energy seminar in Dubai, where Suo-Hang Chuang, the vice chairman of TAITRA, led a delegation of four established Taiwanese suppliers. The suppliers have

We want to help meet the government’s green building initiatives and their plans to reduce their dependence on oil.” Suo-Hang Chuang, TAITRA made considerable progress in the field of energy efficient solutions, giving UAE-based domestic companies an opportunity to discuss trade and investment cooperation with their Taiwanese counterparts. At the same time, the seminar also helped the Taiwanese firms get the exposure they needed, to take their smart energy products to an international level. Working towards a more energy-efficient future, the Taiwanese delegates consisted of Dr Shuo-Yen Chou and Steven Young, professors from the National Taiwan University of Science and Technology; Jason Lin, assistant vice-president at NexPower Technology Corporation; Johnny Ku, marketing director at Yushi Industrial; and Kevin Luo, manager at Tatung. The delegates from National Taiwan University of Science and Technology talked about conserving energy in constructions by employing cutting edge technologies and using heat insulation solar glass in buildings to make them self-sufficient. NexPower, an energy-harvest smart glass provider, spoke about their cutting-edge eco smart glass to harvest solar energy. Meanwhile, Yushi Group, with their vision to a greener future, displayed its various types of energy efficient glass options designed to benefit both, commercial and residential use.

Lastly, Tatung, a manufacturer of AMI smart meters and AMI related products, highlighted how smart metering systems can help utilities more cost-effectively manage their energy. Chuang says: “We want to bring our green solutions to the UAE. We want to help meet the government’s green building initiatives and their plans to reduce their dependence on oil. Their focus is renewable energy; by 2030, they want 25% of their total energy needs to be met by green sources, which is very ambitious. We hope we can contribute to this energy power. “Taiwan wishes to absolve the nuclear power plants by the year 2025. In the next eight years, we want to shift from nuclear—which meets 16% of our country’s energy needs— and produce 12% of our totally energy from green sources. This goal seems to unify Taiwan and UAE.” In November 2015, vice president and prime minister of the UAE and ruler of Dubai, HH Sheikh Mohammed launched the Dubai Clean Energy Strategy. Under this strategy, Dubai aims to produce 75% of its energy requirements from clean sources by 2050. The strategy also aims to make Dubai a global centre of clean energy and green economy. It consists of five main pillars: infrastructure, legislation, funding, building capacities and skills, and environment friendly energy mix.

The infrastructure pillar includes initiatives such as Mohammed Bin Rashid Al Maktoum Solar Park, which is the largest generator of solar energy in the world from a single location with a capacity to produce 5,000MW by 2030 and a total investment of AED50bn. The legislation pillar focuses on the establishment of a legislative structure supporting clean energy policies in two phases. The funding pillar includes the establishment of Dubai Green Fund worth of AED100bn which will contribute through its financial resources easy loans for investors in the clean energy sector in the emirate at reduced interest rates. The fourth pillar aims to build human resources capabilities through global training programmes in the field of clean energy in cooperation with international organisations and institutes such as International Renewable Energy Agency (IRENA), as well as international companies and R&D centres. The fifth pillar is focused on creating an environment friendly energy mix comprising solar energy (25%), nuclear power (7%), clean coal (7%) and gas (61%) by 2030. The mix will gradually increase the employment of clean energy sources to 75% by 2050, making Dubai the city with the least carbon footprint city in the world.

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G e n e r ato r s

Power on

With technology impacting all machines today, the generator industry is not one to be left behind either. Mehak Srivastava speaks to industry experts to better understand these developments

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arge projects require continuous electricity supply both during execution and post development, and diesel generator sets are deployed as backup power sources at construction sites, and for use as standby source of power at consumption centres in the Middle East. The building boom in the region is seen as a major propelling force behind the growth in the gen-set market in the Middle East. Mega offshore and onshore projects in the UAE have significantly stimulated the need for temporary power, thereby spurring gen-set demand. Dubai is often said to be the heart of the construction boom, despite the market collapse in late 2008. Steve Caygill, regional general manager for UAE, Qatar, and Oman at Byrne Rental, says: “From a purchasing perspective, market indications showed that there was about $560mn to be invested in the Middle East market around 2011. Currently, that projection stands at $950mn by the end of 2018. Obviously, a lot of that information is speculative, because some companies are listed or private, and the total information isn’t always publicly shared.” According to a 2017 industry report by Research and Markets, the market for diesel gen-sets is forecast to grow to reach $1.54bn globally by 2026. Saudi Arabia and the UAE are predicted to continue to lead Middle East and Africa diesel gen-set market in the coming years – primarily due to the large populations in the two countries. Hussein Elkashef, assistant sales manager at GENAVCO, says: “While the diesel gen-set rental market declined by 60% during 2015 and 2016 as a result of the slump in oil prices and its impact on public finance and projects, the market has bottomed out and is now steadily rising again.” GENAVCO has been a distributor of SDMO generators in UAE since 2010. The gen-sets cover range of power up to 1000kVA covering the UAE market via three branches in Dubai, Abu Dhabi, and Sharjah. SDMO has different engines powering their machines— John Deere, Volvo, Doosan, and Kohler. A separate report released in April 2017 by 6Wresearch focused on the diesel gen-set rental market in Saudi Arabia, and similarly forecasted a compound annual growth rate (CAGR) of 3.7% from 2017 through to 2022. It also pointed to key factors supporting this growth, including public infrastructure, government support of industry, and the need to supply power in off-grid and remote areas. It further indicated that the shift in Saudi government policy in favour of diversifying the country’s revenue into non-oil sectors

In my opinion, diesel power generators will still be the first choice for the end users. It is always available, easy to maintain, and not hazardous.” Hussein Elkashef, GENAVCO

will also drive the growth of rental market in Saudi Arabia. Diesel gen-sets with capacities ranging from 5kVA to 75kVA currently account for much of the sale in Middle East markets, due to high demand in construction, retail, and telecom sectors, followed by medium rated diesel gensets, ranging from 75kVA to 375kVA. Caygill comments: “Byrne Rental provides a wide range— from the smallest 10kVA unit

right up to 1650kVA. Some of our major power packs are synchronised up to 2000kVA, where we would purchase specific for that application or project.” Diesel gen-sets have found favour in the industry as compared to their gas counterparts, in keeping with former’s higher fuel efficiency. Diesel generators use less fuel than their gasoline-powered counterparts. Gasoline engines, on the other hand, mix the fuel and air togeth-

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G e n e r ato r s

As a rental provider, you have think about ways to add value for your client, which we do constantly.” Steve Caygill, Byrne Rental

er in a carburetor prior to compression, reducing fuel efficiency. Because portable diesel generators are more fuel efficient, they run longer on the same amount of fuel. Elkashef states: “Many other power options (for users) are now available, for example solar and gas gen-sets, but in my opinion, diesel power generators will still be the first choice for the end users. It is always available, easy to maintain, and not hazardous.” Caygill adds: “We have clients and projects yet to be announced, including details relating to megaprojects such as The Tower and Expo 2020, where they are looking for low-emission options. Hybrid remains an area of interest for our clients to look to save fuel consumption, which is still under development. Similarly with solar, which is still in lower kVA output ranges presently. We are now seeking the flexibility of this product in a scalable rental offering therefore, but it’s still very new in its development.

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“When you think of going green in relation to diesel engines, you have to think of bio-fuels with better emissions, synchronising generators to load share and save fuel consumption. We do this by having power shared between two engines rather than one, allowing them to function at their premium output and ultimately use less fuel. As a rental provider, you have think about ways to add value for your client, which we do constantly. If we can save a few running hours on machines or have them work at their premium output, the fuel consumption—particularly on large generators— has a significant cost saving to the client at the end of each month.” And now, generators don’t have to go just green. Elkashef remarks: “Generator manufacturers have to now be in line with the market requirements in terms of latest technology. For instance, the building management system (BMS) has become mandatory for standby ap-

plication gen-sets used in buildings. SCADA system generators should be able to interface these systems, especially in important locations like airports, hospitals, and data centres.” Gas gen-sets are certainly picking up. A July 2016 Frost & Sullivan report highlights that technological advancements have resulted in the increased popularity of gas gensets. According to the report, technology innovations include the optimisation of engine speed, integrated approaches to generator paralleling, and bi-fuel—or combined diesel and gas fuel—operations. Plus, power densities and transient performance is said to be improved by increasing the operating speed of gas-fired engines. In the near future we will see more power generation from renewable sources, although for the foreseeable future, generators powered by diesel engines will co-exist with renewable power generation technologies.



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S u p p ly c ha in

To be frank, we don’t think about the competition that much. There’s a reason why we’re the largest and customers keep coming to us. I would say our biggest competitor is ourselves.” David Christmas, DHL Supply Chain

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In the hands of the


David Christmas, CEO for DHL Supply Chain Middle East, Turkey and Russia, tells Mehak Srivastava why the opportunities are ripe for the supply chain sector in the Middle East


n August 2017, DHL Supply Chain announced an 18% increase in its Middle East revenues year to date. The company also had several large-scale agreements since the beginning of the fiscal year 2017. This included an agreement with Etihad Airways Engineering, to manage stores, local transport movements, and associated supply chain planning at the Etihad Airways Engineering hub at Abu Dhabi International Airport; a joint venture with Bahwan Cybertek in Oman; and a ten-year logistics contract with Cathay Pacific and Cathay Dragon to handle storage, warehousing, and domestic transportation of aircraft service parts at Hong Kong International Airport (HKA). As David Christmas, chief executive officer for DHL Supply Chain Middle East, Turkey and Russia agrees, things are looking great indeed. The supply chain market Christmas says: “Supply chain is a very significant industry for most of the countries in the Middle East. And it is changing quite rapidly. If you look at the last decade, the way warehouses were structured, the way transport fleet was run—it was very basic. But now, change is driven by the economic environment. Big companies are looking to do things differently, so that’s one of the main reasons our revenue has gone up so significantly.” Christmas attributes this progress to first time outsourcing; companies like DHL Supply Chain taking over the end-to-end supply chain of big organisations. Many large businesses are turning to this now because of economic pressure. CEOs around the world are trying to cut down assets, in turn focusing more on their core objectives. A look at the Fortune 500 list clearly shows that most of the companies utilise outsourcing in one form or another, as part of their business-operating

model. In 2016, UAE’s supply chain and logistics industry alone touched over $25bn. Stephen Bentley, CEO of Granby Marketing services, comments: “Outsourcing can benefit companies of all sizes, but particularly organisations making the transition from start up to fully fledged business.” He mentions that if done right, outsourcing can save owners a significant amount of money. “Most of the deals (in the region) either present or coming-up are what I would call significantly sized deals,” says Christmas. “You’re taking at least a double-figure million euros, sometimes well over €100mn each, sometimes even larger. And they’re really all about first time outsourcing opportunity. So that’s where we see the growth for us.” Technology and online media Christmas comments: “Our vision is to be the most digitalised supply chain company in the world. Innovation is number two on every agenda in our business strategy at the moment, number one being safety. We’ve got different innovation centres around the world, and we also work in partnerships with different universities and local businesses. And when we see something exciting, we trial it accordingly. We put different technologies in different countries, and it is the country’s responsibility to bring them up to a level of success. And when it is successful, we draw them up globally and spread them out.” In the Middle East, DHL is currently testing products in the field of biometrics. Given the general hot environment in the region, one of the principal products that the company is working on is a high-visibility cooling vest. The vest will monitor body temperature levels of people working in outdoor environments,

thereby ensuring they are not over-exposed and preventing potential heat strokes. Another product that they are working on is aimed at truck drivers, monitoring their attention level while they drive. Christmas explains: “We have either the telematics system in the cab or the engine, or a transport management system which is tracking the vehicle, showing the behaviour of the drivers. This allows us to utilise the capacity of the trucks better. It is all in real time now, and highly visible.” Both products are still in their pilot stage as of now. Not every product is tested for every region; robotics, for instance, is still not a part of the company’s Middle East plans. The main purpose of the robot would be for value-added services, such as packaging and labelling, which is not on a large scale in the region. Christmas mentions that he was eager to test the cooling vest and transport monitoring system for the Middle East region as they seemed to be the perfect fit, given the weather and road safety strategies. 3D printing is a tech rage that has overtaken many industry sectors worldwide. Companies can find additional savings from the reduction of production waste as well as the increase of sustainable business practices through 3D printing. A study by Airbus showed that by redesigning its brackets for 3D printing, the company could achieve a 40% reduction in CO2 emissions over the lifecycle of the bracket and reduce the weight of the airplane by 10 kg. 3D printing also enabled a 25% reduction in material waste compared to traditional casting methods. But the technology hasn’t yet fully immersed itself in the supply chain business. A November 2016 report by DHL mentions how 3D printing is certainly impacting the healthcare, automotive, and manufacturing industries, but it is still in de-

Logistics News ME | November 2017 | 37

S u p p ly C ha in

DHL Resilience 360 is a supply chain risk management tool developed by the research team at DHL Customer Solutions and Innovation, to help clients understand the risks associated with their supply chain and improve their ability to monitor and respond to potentially disruptive events as they happen. It has picked up pace of late, in the wake of natural disasters that have impacted trade. David Christmas says: “The idea behind this is that you have full visibility of the impact of these occurrences on the supply chain. So, whether there’s a volcano going off, a flood, or a tornado or hurricane, our customers can be prepared and aware of which supply chain, ports, and airports are likely to be affected, what’s the impact going to be, and what are the alternate decisions that can be made.”

veloping stages. The report says that 3D printing is likely to complement rather than entirely substitute traditional manufacturing techniques; simply put, not all products can and should be 3D printed. This conclusion was echoed in a survey conducted by DHL, which revealed that 38% of companies anticipate using 3D printing in their serial production within five years but not necessarily to completely replace traditional manufacturing. In logistics, 3D printing will play a much more prominent role in the areas of spare parts logistics and individualised parts manufacturing. Christmas mentions: “A recent, very visual picture that I’ve got of one of our DHL adverts is about getting medical equipment to people in the more developing parts of the world, and there’s an advert showing a boy with a prosthetic hand, which we delivered to a location in Africa. A lot of those items can now be done from a 3D printing perspective, which is fantastic. You’ve got people from around the world having a better quality of life, because of that technology.” DHL Supply chain is also quite proactive online, displaying its latest tech innovations for the world to see. Their stable and constant presence online certainly ensures that the clients are kept abreast with any progress and developments. But does this mean being under relentless pressure, especially from competition, since they are out in the open? “To be frank, we don’t think about the competition that much,” says Christmas. “There’s a reason why we’re the largest and customers keep

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coming to us. I would say our biggest competitor is ourselves. And, our only limit is our ambition to go forwards. So there’s a lot of pressure on us all the time, but not really from the competition. It is more about innovation and digitalisation.” Another reason that pushes DHL to maintain a virtual presence is its younger workforce. Having been voted best employer on multiple occasions, in various industry verticals, the company tries to maintain the outlook of a digitalised company. Specialised workforce A 2017 DHL survey revealed that the supply chain sector is facing a talent shortage that is quickly escalating from a gap to a potential crisis. The U.S. Bureau of Labor Statistics reports that jobs in logistics are estimated to grow by 26% between 2010 and 2020, while another global study estimates that demand for supply chain professionals exceeds supply by a ratio of six to one. The situation is worsened by the exodus of baby boomers from the workforce. Some studies assert that 25-33% of the current supply chain workforce is at or beyond retirement age, and the backfill pipeline is inadequate to satisfy replenishment demand. Leading companies understand they must act to resolve this situation, or face the effects of having the wrong kind of talent to run their supply chains. The potential consequences are worrying – in some industries, the talent gap could threaten the ability of companies to compete on the global stage. Christmas, however, believes that talent gap isn’t that big a worry in this part of the world. He says: “I don’t think there is a talent gap in the Middle East, and I really believe that. I think there is a huge amount of enthusiasm, and the passion in the business to make things happen is very different. If you go to operations in the UAE, or in Muscat, or Saudi Arabia, the level of energy and positivity is generally immense. A lot of that is coming from the localisa-

tion agenda in nearly every country in the Gulf, probably every country. People like ourselves are given a sort of target to get to for local employment. And that fills the talent gap. “People are keen to work for a good brand, a company that looks after its people. And they’re keen to work for companies that give them a sort of an international exposure. My problem isn’t the talent. My problem is that I’ve got so many people ready for a promotion, needing to win more business so they can go to the next level, and I really mean that. It is sort of the reverse.” The industry has known for years that it has an image problem. The widespread perception, especially in emerging markets, is this: supply chain is not as ‘good’ a career as one in finance, operations, manufacturing, product development, marketing, or sales. While the industry has worked hard to change this perception, judging by the DHL survey results, it still has a long way to go. Only 25% of the survey participants said their company views supply chain as equally important as other disciplines, and 59% of the participants reported having difficulty retaining talent. Christmas believes this view needs to change. He explains that supply chain personnel are perceived to be head-focused, process oriented, and logical. “Which aren’t bad traits to have as an employee!” says Christmas. “But, we probably need a bit more heart in there, so we encourage our people to go the extra mile, connect with customers more closely, so we’re doing a lot of work on that.” He adds: “We push for an emotional connection, so if we’ve got a delivery with heart valves in it or vaccines, we encourage the employees not to see it as just a box. We know there’s someone receiving it at the end of the journey. There’s a customer at the end, maybe it is someone who is on an operating table. It could be an engineer waiting at a refinery to fix a certain element, or maybe someone waiting for a Christmas present. But all of it has meaning, and if we inspire that meaning with our employees—which we’re very good at— we create that meaning with our customers. “I don’t know every industry in the world, but I think it (supply chain) is one of the best industries in the world, one of the most enjoyable. We are stuck with an image which is not as progressive as it should be, and it is up to us to change that. Most people that join us don’t go anywhere else. Someone asked me the other day, if I would want to be on the 6:05 train from Reading to Paddington in the UK, going to my consultancy office somewhere. The answer would definitely be no. I’d rather be flying through the night to Toronto to meet a customer, and review their supply chain. The thrill of standing in an airport one day, a port the other day, the next day you’re in Chennai, and the day after you’re in Muscat, and you keep going! I think its hugely challenging, and all the more exciting.”

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Int e rv iew

We have a clear direction and concentrate on specific areas we excel in.� Sean Bradley, Freightworks

Delivering excellence Sean Bradley, managing director of Freightworks, explains how the company might not be the biggest player out there, but they work with passion distinctive of a top corporation

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Freightworks is a joint venture between Emirates/DNATA and the Kanoo Group. How has this cemented Freightworks’ image? Freightworks, being part of DNATA, Emirates Group and Kanoo Group, was always well received by local and international customers. It has also helped us in managing our business seamlessly when we approach government and customs authorities for any assistance. Being part of these two giant companies, customers expect a high level of service which we continuously deliver. The shipping industry is transforming by the day in terms of modern technology. What practices has Freightworks embraced? The technological advancements in the industry, driven by the main integrators - DHL, FedEx, and others in the early years of the courier industry have driven the standard in terms of proof of delivery systems and capturing multiple key points in a package’s journey from pick up to actual delivery, including a signature. These enhancements have flowed into the freight industry along with WMS, TMS, RFID, and other systems to manage the industries business with their client base. All are aimed at transparency, efficiency, and driving profit. At Freightworks, we utilise all these platforms to maintain best-in-class service for our client base. We are always on the lookout for new products and methods of working, such as current discussions with Ehrhardt + Partner Solutions, a high-level provider of software systems for warehouse logistics. How is Freightworks faring against international competition? At Freightworks, we have a clear direction and concentrate on specific areas we excel in. We are specialists in supply chain, projects, removals, and event logistics. We do not have the purchase power of the Kuhne + Nagel of the world when it comes to buying boxes (containers) but we are small enough to care, big enough to deliver. We feel that the bigger companies have become so inflexible; our company picks up new business based on face to face relationships built over short periods of time, a way of working we are passionate about. In addition, we are not affected by world economic fluctuations in the same way the bigger companies are. How has the global economic downturn impacted Freightworks? We are not immensely impacted by economic downturns. We have of course been affected to

a certain extent, but year-on-year results are up. The second and third quarters (of 2017) have been slow and we had a good July, and we are very actively preparing for what seems to be shaping up to be a strong fourth and final quarter of the year. Last November, Freightworks was awarded as one of the top five companies to use the Smart Workplace Platform. Tell us about this. Dubai Customs launched the Smart Workplace Platform, the latest innovative initiative that comes as part of Dubai Customs’ efforts to materialise the vision and directives of the UAE’s wise leadership in instilling innovation as a fixed approach and a daily practice in order to achieve the move towards a full smart government following the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. The new smart workplace aims at turning traditional services into a unique user experience that reduces time and cost, and accelerates the process of finalising declarations using a number of smart and innovative tools and characteristics. The new smart workplace will accelerate the process of finalising customs declarations, reducing the task to four to five minutes instead of 20 to 40 minutes. Dubai Customs awarded the heaviest us-

ers during the Smart Workspace official launch on November 28, 2016. Dubai Customs awarded the first 10 users and the top five companies in Dubai using the Smart Workplace since its launch in May 2016 until November 2016. They were awarded with Dubai Customs’ memorial shield and appreciation letters. Dubai Express (we trade as Freightworks) was one among the top five companies, and four of our staff were among the top 10 users award of the subject platform. What are the company’s goals for the second half of 2017? To exceed our annual budget, retain all existing business, develop new business, and raise awareness that Freightworks is 3PL and 4PL friendly; we are expanding our capacity footprint and these plans will be announced toward the end of the year. Operationally, we will continue to exceed customer expectations through proactive and on time service delivery. We will ensure cost optimisation and economies of scale across all functional areas whilst ensuring best in class HR practices are maintained and improved throughout the business. Staff remain a key focus and with an enhanced, experienced team of experts in the field of HR, we will continue on the theme of investing in and attracting new staff to the company.

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Acce s s eq ui p m en t

Market Access

Terex Middle East’s Sharbel Kordahi talks to Logistics News about the access equipment market Representing all the products and services of Terex Corporation, notably including Terex Aerial Work Platforms (AWP) Genie access equipment brand, Terex Equipment Middle East was first established in 2007. Headquartered in Dubai, the company supports the sales of the full Genie product portfolio across 41 countries in the Middle East. The Genie brand comprises the world’s broadest aerial access offering, ranging from material and personal lifts, boom lifts, scissor lifts to telehandlers. Managing director Sharbel Kordahi tells LNME that sales of Genie aerial access equipment represents a 25% share of a Middle East market largely driven by the construction and oil & gas sectors. A slowdown in the latter, especially in Saudi Arabia, slowed demand in the first half of 2016, but he reveals markets like Kuwait, the UAE and Qatar partially compensated for the gap in sales, and the company had a strong finish to the year with a healthy pipeline of prospects. “Q1 2107 also started low, but we have seen our pipeline increase on a weekly basis, with customers gearing up for purchasing and renewing/increasing their fleets. In Q3 and Q4 we are expecting demand to be significantly higher than it was three months ago. Interest is high for versatile machines that offer higher lift capacities and quiet, zero emissions operation such as our Genie Extra Capacity (XC) boom family and all-electric Genie Z-60/37 DC and hybrid Genie Z 60/37 FE lifts.” According to Kordahi, productivity is a key focus for buyers of access equipment in the region and the company has concentrated on supplying powerful kit and meeting demand for greater efficiency. “The models of the Genie Extra Capacity family of booms respond to this need by offering from 300 kg up to 454 kg in the restricted zone, which is 32% more capacity than the industry standard. They also include new de-

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In Q3 and Q4, we are expecting demand to be significantly higher than it was three months ago.”

Sharbel Kordahi, Terex Middle East sign features to increase efficiencies and make work easier such as our telescoping Jib Extend design, new Mini XChassis, new Genie Automatic Envelope Control Technology and Zero-Load Calibration capabilities,” he explains. “By providing the ability to perform more tasks more rapidly and easily with a single machine, these XC models are extremely versatile and productive, which is excellent for

rRoIC (rental return on investment capital).” The swelling numbers of hotels, malls and the large number of stadiums in the Middle East keep demand for maintenance steady. The facilities management companies that maintain these structures increasingly need low or zero emissions equipment adapted to indoor as well as outdoor applications (“even on rough terrain,” he adds). “As a result, we are experiencing strong interest for our all-electric 18m Genie Z-60/37 DC boom, hybrid Z-60/37 FE lift (the Z-60/37 FE was awarded ‘Rental Product of the Year 2017’ by the European Rental Association) and the lightweight and compact 12m electric Genie Z-33/18 boom. These economical and environment-friendly models combine the benefits of the latest Genie technology to provide reduced operating costs, powerful, true 4WD capabilities, with the advantages of clean, quiet, low or emission-free operation adapted to indoor as well as outdoor tasks. Thanks to their state-of-the-art power sources, these models are particularly economical to operate, and due to the simplicity of their design, they are also easier and economical to service and maintain.” Kordahi cites a recent sale of three Genie Z-60/37 DC booms to Dubai Parks & Resorts as a good example of the appeal of this new generation of machines. “Dubai Parks & Resorts chose the boom as an alternative to separate diesel and electricpowered units. It provides more performance in a compact unit than any other 20m electric powered boom on the market. Offering a platform height of 18m, a horizontal outreach of 11.15m and an up-and-over clearance of 7.4m, the lift combines the 4WD performance of a traditional diesel-powered machine with the benefits of quiet, environment-friendly allelectric operation offering full workday indoor and outdoor emissions-free performance on

just one battery charge. Weighing 2,268kg less than the Genie Z-62/40 boom, the lift provides the ability to access many work environments that other models cannot.” In addition to its electric and hybrid booms, as well as its popular scissor lifts, Terex Equipment Middle East is also receiving more demand for Genie’s protective solutions, such as its Lift Guard Contact Alarm (which prevents operators from crushing and injuries caused by overhead obstacles) and the Lift Guard Fall Arrest Bar that focus on operator safety. “The Fall Arrest Bar is the only system of its kind on the market and enables operators to work at height safely, when required to step outside of the platform onto an adjacent structure by the means of a shock-absorbing lanyard that ties-off onto the platform to use their Genie booms as an anchor. Many of our latest models, and notably our new Genie X’Tra Capacity (XC) booms, all include new

low-maintenance load-sense cell technology that monitors the weight on the platform and disables function if the load exceeds the platform load limit.” Al Mahroos Trading was appointed as the first Authorised Genie Service Provider in the Middle East earlier this year. Based in Dubai, the company has begun offering skilled field support, parts, maintenance and training, as well as full rental fleet management solutions. Al Mahroos is also promising to roll-out the service which is tailored according to individual customer requirements, throughout the UAE. “Service is a top priority and our aim is to be closer to our customers and have a faster response to their needs. This includes faster deliveries, faster service solutions and the best value propositions for their businesses,” he explains. “Genie customers in Dubai and the Northern Emirates are the first to benefit

from the additional technically skilled hands.” As the market matures, rental company ownership is advancing quicker than ever. In the past 18 months, Kordahi has noted their high utilisation rate, “means that many contractors and endusers are increasingly opting for renting machines versus buying. We are seeing high rental demand notably in Kuwait, the UAE, and Qatar” He argues that this trend is being driven by market uncertainty and contractors beginning to see the advantages of machine rental to avoid issues related to ownership, such as making the initial investment, maintenance, transportation, documentation and utilisation: “With this in mind, our latest models are designed to perform in an extremely wide range of indoor and outdoor tasks to increase rates of utilisation. This is exactly the type of solution rental customers are looking for to adapt to customers’ needs and boost their returns on investment (rROIC).”

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Int e rv iew

Logistics News ME presents the highlights from the most exciting event in Dubai for the month of October— GITEX Technology Week 2017

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ITEX Technology Week has always been the talk of the town— and its 37th edition was no different. The air was charged up with talks of trends, and startups, entrepreneurs, tech enthusiasts, and investors alike were swept into the grand scheme of things. The 2017 edition of the event ran from 8-12 October at the Dubai World Trade Centre. Exciting pre-announcements included talking androids, the launch of the latest BlackBerry phone, and the most talked about—RTA’s autonomous flying taxi. Visitors got a glimpse of the world’s first automated aerial taxi (AAT) – a self-flying, fully electric flying machine with no engine, no noise, and no complex mechanics. The technology is built by the German autonomous vehicle manufacturer, Volocopter, while RTA has set in motion plans to integrate it into Dubai’s public transportation system and potentially be made available for booking through an app. The taxi is still under trials, however, but that did not mar the interest it generated. The era of startups Startups were in the spotlight this year at the event, with home-grown companies in the region continuing to reach valuations in hundreds of millions. Magnitt is the Middle East and North Africa (MENA) region’s largest startup community website aimed at helping startups looking for capital and talent, and works at connecting them to the right investors and corporates. The company released its third-quarter report ahead of the mega event

to show that 2017 has already crossed the levels of 2016 both in terms of deals and value of startups. The report highlighted that 2017 continues to show a strong trend of growth in investments for MENA startups with a deal flow of 169 in the first nine months of 2017, as compared to 164 deals in the whole of 2016. Philip Bahoshy, founder of Magnitt, commented: “The summer is generally perceived as a quieter period in the region. However, we saw a flurry of announcements in September and we expect this trend to continue through to year end. This highlights the increased appetite in the startup space from existing as well as new regional and international investors.” Magnitt’s report, however, highlights that the funding value of 2017 is yet to match that of 2016, a figure Bahoshy attributes in part to Amazon’s acquisition of and the 20% of 2017 deals, which have remained undisclosed. The third quarter of 2017 proves to be the strongest Q3 in recent history, with 62 new deals and over $76mn of investment in MENA startups. While $254mn of investment was recorded in the first nine months of 2017 (excluding Souq and Careem), only $28mn remained short of full year 2016 with three months still left to go. Purely technological Gadgets, innovations, and technology attracted all kinds of excited visitors to the halls at GITEX, with developments in robotics forming a large part of the new innovations; be it the Yaskawa RoboChef or the RoboShaker helping make an egg sandwich or to mix a cocktail,

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E v e n t r ev i e w

or the South Korean Dot Incorporation braille watch, which allows blind users to access information from the wearable device linked to a mobile phone. Planet Gemini PDA at the Etisalat stand looked like a normal pocket mobile device, with all the usual functions, but consisted of a pop-out fully integrated keyboard, which allows users to transform their phone into a mini desktop computer. Dubai Internet City’s pavilion at the event highlighted the importance of connectivity and integration of smart technologies that form the bedrock for the Dubai Smart City initiative. Under the theme ‘The Smarter Journey’, four distinct urban spaces at the futuristic DIC pavilion invited visitors to sample life in a smart city, featuring immersive, cutting-edge innovations powered by its vibrant community of business partners including Uber, Canon, Samsung, and Visa. Speaking on DIC’s role in shaping a tech business ecosystem in the region, Ammar Al Malik, executive director of DIC, said: “GITEX Technology Week 2017 has reinforced Dubai’s status as an accelerator of innovation, digitalisation, and growth. Our dynamic community has been an integral part of the UAE’s technology journey from the very beginning, and has evolved from being a place to transact technology-related business into a modern hub that attracts game-changers in the tech landscape from around the world.” He further said: “Connectivity is the fuel that powers smart technology today. More than serving as a sum of its parts, Dubai Internet City continues to connect its partners’ innovations to collaboratively shape the smart cities of the future.” Popular with visitors, and marking another technology revolution, Visa’s Bentley VR car, the first regional prototype, enables users to order food, fill up the tank, get guidance on traffic or parking via voice commands, and a seamless payment system. Furthermore, the Leisure District saw DIC partner Samsung, allowing visitors to experience its fitness wearables to monitor health as well as latest immersive technologies, such as rides on stationary bikes through a virtual park. SAP, the global digital government enabler, showcased the strong accomplishment from a collaboration with the Executive Council of Dubai, to deploy SAP SuccessFactors and Human Capital Management suite. This ensures following the world’s latest and best practices in all aspects. As a result, the Executive Council of Dubai is supporting innovation across talent management, succession planning, human resources, e-learning, performance management, and workforce analytics.

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Tayfun Topkoc, managing director of SAP UAE and Oman, said: “The Executive Council of Dubai is pioneering technology collaboration to drive government talent development, efficiency, and innovation. By sharing talent data on one digital platform, the Executive Council of Dubai is enhancing the recruitment, training, and career development of their workforce.” Showing the sturdy demand for upskilling the workforce, the UAE employer demand for cloud skills is growing by 160%, 88% for analytics skills, and 58% for mobility skills, according to the recent report Workforce 2020 by Oxford Economics. Government innovation The UAE government was not to be left far behind, with several new tech and ideas introduced to improve the lives of UAE residents. Dubai Police introduced a smart glove that

understands the sign language movements of its user and translates them into Arabic on a computer screen. The glove is the brainchild of four Dubai-based students; Dubai Police got wind of their invention after they won a prize for it at the Think Science event, and are now considering implementing it as a way of better communicating with sign language users. Dubai traffic police also said they will create drive-thru traffic fines’ payment services to reduce the number of people visiting police stations, with the chief of Dubai Police announcing the new payment method at GITEX. Dubai Civil Defence unveiled a new fire monitoring system that will be connected with 150,000 building in the emirate. The fire systems are said to be installed by the end of 2018, and all residential units will be equipped with it by 2019. The system involves the use of high-tech alarms connected to the building’s fire systems, which are in turn,

connected to civil defence operations rooms. Maqta Gateway, the developer and operator of the first port community system in the UAE, also made presence at GITEX, as part of the Abu Dhabi Digital Government pavilion for the second consecutive year. The recently inaugurated Maqta Gateway is a transformational project that has set out to re-define Abu Dhabi’s trade services, processes, and information exchange through a unified interface that connects various trade customers, including shipping agents, traders, custom brokers, freight forwarders, and clearing agents, with 35 different entities integrated within the system locally and internationally. During the exhibition, Maqta Gateway showcased some of the latest home-grown technology solutions including the recently developed mobile application, Manara, and a new customer and investor centric web portal for Khalifa Industrial Zone and Khalifa Port Free Trade Zone. Manara is an application especially designed for registered users on the Maqta Port Community System, enabling them to get real-time updates of the status of their shipments as they reach their destination, and is currently one of more than 100 digitalised services that Maqta Gateway is offering to its stakeholders and customers.

HH Sheikh Sultan bin Ahmed Al Qasimi, chairman of Sharjah Media Council, visited the Sharjah pavilion at GITEX, and stressed the importance of technological developments in Sharjah. He confirmed the need to keep abreast of global technological advances, which would reflect positively on performance in general and help to improve services provided to the community. He further expressed his appreciation for Sharjah’s participation in the exhibition, lauding the efforts of government entities in the emirate towards full digital transformation in harmony with the vision of pioneering technological progress. Meanwhile, ‘Technology for good’ was a major focus at Etisalat this year during the event, focusing on transformative technologies that will enhance the lives of the differently-abled, specially designed to help them in their day to day activities, many of them showcased for the first time in the country. The showcase of these technologies was also keeping in line with Etisalat’s overall strategy of increasing the happiness quotient for all citizens in the country by introducing solutions and technologies that make a major impact and change lives of people. Dr Ahmed Bin Ali, senior vice-president, corporate communication at Etisalat Group,

said: “This year, at GITEX Technology Week, these transformative technologies also aimed to showcase how it can change lives and spread happiness in all segments of society. At Etisalat, our efforts strive to work with Dubai’s Smart Office’s happiness meter in the country prioritising citizen’s happiness and satisfaction levels.” Dubai Land Department’s platform at GITEX was a key destination for senior government officials, who praised the department’s ongoing efforts to align itself fully with the Dubai Plan 2021 and position the emirate at the forefront of the world’s smartest cities. HE Sultan Butti bin Mejren, director general of DLD, commented: “One of the highlights of our participation in this global event was showcasing DLD’s commitment to making Dubai the smartest and most successful city in the world. Our dedication to supporting our leadership’s efforts to achieve smart transformation in the emirate is not only demonstrated by our advanced applications, but also by our cooperation and coordination with government entities and private sector companies. I thank our employees and praise the important role they played in welcoming visitors, introducing them to our services, and presenting our latest innovations in the world of real estate applications.”

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V i e wp o i n t

A change in the air Ralf W. Seifert, director of the digital supply chain management program at IMD, explains how India’s newly implemented tax laws will impact the mega-nation’s intricate supply chain network


ndia is on the cusp of a supply chain transformation that may end up being nothing short of a major game changer. At IMD, we often discuss the distribution footprint of L’Oréal which had an outsized 15% of its distribution centers located in India. This usually leads to a lively discussion as to why companies in India have surprising supply chain configurations. Companies like this may be in for a major change in the coming years. And it’s a story that begins, funnily enough, with taxes. poor supply chain incentives The Indian tax system is a series of complex state taxes based on origin of goods and a central federal tax. Different states had different rates and levies for the taxes under their control, and the intricate web created strange incentives for companies, ones that

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seem very suboptimal from the perspective of the supply chain. The state-level origin taxes often did not allow companies to reclaim taxes paid on raw materials if the goods were sold to another state. This was meant to incentivise companies to manufacture locally, and indeed many did, either by outsourcing or creating microfactories in most of India’s 29 states, despite volumes that might have more naturally led to larger economies of scale in consolidated production facilities. Unilever, for example, has 38 factories in India out of more than 300 factories worldwide. Other companies like L’Oréal have opted to store goods in each state rather than multiply their production sites. The downside for L’Oreal is having a footprint of over 20 distribution centers in India, similar to their footprint for all of Western Europe, even though

revenue for Western Europe is six times larger than that of India. This is due to the significant delays caused by the tax regime. The states have every reason to try to ensure compliance to maximise their tax revenue, and do so by imposing state border controls, where trucks were often stopped, inspected, and even unloaded to ensure that the state and central taxes were in order and the origin of goods confirmed. We spoke to Raj Reddy, supply chain VP at Glenmark Pharmaceuticals. Reddy estimates that this increased transit time by about 50% on a high volume transport lane like Mumbai-Delhi. Past estimates from Mumbai-Calcutta have been as high as a seven-fold delay for freight as compared to a passenger vehicle. These long delays for transport run straight into the very localised and demand distribution market. India is well-known for its sprawling

deep trade distribution channel. Manufacturers must work through a very highly fragmented patchwork of small distributors who tap into these networks and manage the complexity on behalf of the manufacturers, explained Reddy. The distributors demand lead times for orders that are often less than one day. With the state border controls, it is impossible to service the orders from another state, regardless of how close the distribution center may be. Reddy gave the example of Delhi, which encompasses three states and requires four distribution centers, whereas one would be enough, should border controls be removed. The end result is a distribution footprint dictated by states rather than by demand volume. Taking these considerations together, companies operating in India carry either a surplus of production sites or distribution sites, weighing on supply chain costs and performance. A new game In the summer of 2017, the Indian government announced an extremely ambitious tax reform that began ramping up almost immediately. Indian companies are scrambling to move towards compliance to the new tax regime. The Indian authorities have long recognised that the distortions caused by the tax system were a drain on competitiveness. According to a government official who participated in forming the new tax policy, the topic of reform has been formally on the table since 1996, with several failed attempts to enact a tax harmonisation into law since then, starting with the first formal announcement in 2006 and subsequent efforts. He explained that the Indian government was very aware of the impact of the patchwork of state origin taxes on supply chains, and fully anticipates competitive benefits moving forward. Indeed, the official stated that simplifying supply chains was one of the primary goals of the new tax regime. He pointed out how ecommerce had underlined the importance of improving the situation. “Ecommerce companies are not equipped to track the origins of all of their suppliers. They were receiving notices from local tax authorities demanding information that they could not provide, and it was leading to legal proceedings.” Without going into the intricacies, the state tax systems will be harmonised into a goods and services tax, with different rates for different product categories. The improvements this will bring by extracting revenue out of the black market and improving industrial efficiency have ranged from 0.4 to 2% of GDP. In the short term, however, companies are scrambling to find expertise and adjust their IT systems to prepare the complex and mul-

Companies operating in India carry either a surplus of production sites or distribution sites, weighing on supply chain costs and performance.” tiple reporting requirements dictated by the new tax system. Reddy explained that this is demanding master data discipline that Indian firms are unaccustomed to. The impact for supply chains will be an end to the state border controls and incentives to produce and store goods locally within each state. This is the start of what will likely be a profound transformation of supply chain in India. Reddy says: “Supply chain maturity in India is not quite where it is in other countries. This will help bring attention and resources to supply chain performance.” Investors have been anticipating this step. $1.5bn in investments have poured into India

for improving warehousing facilities and technology in the hopes that tax reform will lead to larger regional and national warehouses. They may well be right. Reddy estimates that the tax reform will lead to a 40% drop in distribution centers in the country. One steel company has already announced it will reduce from 20 distribution centers to five. In speaking to the Asia supply chain director for a multinational FMCG company, this view was confirmed. He projects that his company may close as many as half of more than 20 distribution centers in the country. In addition to the cost savings, this executive pointed out the non-negligible decrease in inventory working capital by eliminating so many stock positions. There is also a significant simplification in the planning process for replenishing the distribution centers. He went further to explain that the small distributors that feed the deep trade channel in India are always cash-constrained, so having large, delayed deliveries would be unsustainable for these companies. This imposes a limit on how much distribution consolidation can occur. For those companies that produce in local micro-factories, time will tell what direction they take. India’s road infrastructure is poor and even after the removal of border controls, transportation will likely remain less productive than in other countries and may lead to some companies preferring the increased cost of multiple production sites rather than increased transport costs. While these are open questions at least the key, classic decisions of make/buy and localised/centralised manufacturing will be driven by true operations considerations like material, labour, and transport costs and sustainability rather than by tax optimisation. A refreshing change indeed. Takeaway India is not unique in having tax, tariff, and economic variables structurally impact the supply chain network. For example, Singapore has become a prominent hub due to its trade agreements in the region. Another notable example is Brazil, where tax arrangements between states and the federal government impact the location of manufacturing and distribution sites in important ways, much like in India. Even in North America, the reopening of negotiations of the NAFTA treaty could have unexpected results for supply chains that have now become fully integrated across the United States, Canada, and Mexico, making them virtually one market. Understanding of tax, tariffs, and customs changes will continue to be a critical competency for supply chain professionals.

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R e p o rt

A new player

Azur Digital does a thorough study of the recently launched e-commerce website Noon, highlighting the good and the bad of the portal


n September 30, 2017, the long awaited $1bn e-commerce joint venture, founded by Mohamed Alabbar, called ‘Noon’ finally went live followed by a dozen announcements in the regional press. By the end of the next day, The National even published a price comparison benchmark with their direct rival, We visited the website of this new marketplace with a lot of excitement and asked ourselves: is up to market expectations? All our observations were done between October 1-4, 2017. Product catalogue and navigation We counted between 150k and 200k displayed products, which is under the announced 20 million. Noon managed to secure key brands across dif-

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ferent categories while respecting their merchandising constraints. Respecting brand rules, customers can only shop branded beauty products from the brand specific pages. Some of the suppliers were renowned local retailers such as Paris Gallery for beauty products, Better Life for appliances, and Union Coop for groceries. Alshaya also recently acquired a stake in Noon. It will be interesting to see how these partnerships unfold in the future and eventually offer multichannel capabilities to customers. Many items were out of stock, while some products were published without images, which Noon handled by having a branded placeholder stating, ‘No image available but we sell it’. Product prices seemed to be aligned to their regional and international competitors. The navigation was easy with product cate-

gories clearly labelled and key brands featured prominently in the submenus. Leading categories were displayed on the horizontal navigation, while the remainder were hidden under the ‘All Categories’ dropdown. Filtering did not work for all categories. It is important to get this right since this is one of the main ways for customers to find the product they are looking for in a large product catalogue. But these small flaws did not alter our general impression of easy navigation across the website. The search engine worked well and had a powerful autosuggestion feature. A good search engine is one of the crucial elements to the success of an e-commerce website. The cross-selling features, however, were not relevant. It is still too early to know whether noon will try to compete on price, promotions, or product assortment yet. Nevertheless, the new titan is a se-

rious e-commerce contender and will enter the list of retailers to compare prices from. Supporting this affirmation, has already responded by dropping product and shipping prices. Checkout The checkout flow was seamless, taking only one minute for a new user to fill in all required data. Payment options included card (Visa, Mastercard, American Express) and cash. Paypal was not available, even though it is widely used by other online stores in the region. The message stating that Noon doesn’t store any payment card information could be reassuring for some shoppers, as many in the region are still wary when it comes to online payment. However, during placement of several orders, we saw that the card was saved anyway even though there was no option to save the card during the checkout. The delivery charge was AED10 for orders below AED100 and there was no minimum order. There was no clear information about cash on delivery charges and change handling at delivery. The standard shipping time is next day for orders fulfilled by Noon, and up to four days for orders fulfilled by third-party sellers. Customers don’t have the option to select date and time of the delivery, a must-have when buying groceries online. A one-click purchase button and more payment and delivery options would make the marketplace even better. We also noticed several important data validation and session management loopholes during checkout, especially for guest checkout. User experience Noon is noticeably the first Arabic e-commerce website. The user interface was perfectly written and the typography worked well, setting a new design standard in the region. The responsive behaviour of the website worked well throughout and the design was well adapted for mobile. We also tested Noon’s mobile apps, which were lightweight and as intuitive to use as the responsive website with images loading quickly. Surprisingly, the keyword for finding the app on Android and iOS app stores is not ‘noon’, but ‘noon ecommerce’. The product list page had an efficient and well-spaced grid layout with big images, but the prices were difficult to scan as they are visually blended with the product title text. The display can be further improved for categories such as grocery. The customer reviews integration was questionable as it was a concatenation of many

other website’s reviews. This raises the question of relevance for the regional customer base. Upon adding an item to the basket, users are automatically taken to the cart summary page, which adds an unnecessary step and deters users who want to continue shop on the website. We ordered grocery supplies for our office as a test run and unfortunately only five items out of 14 were delivered on time. All the remaining items were delivered the next day, without additional charges. The emails were well-designed, showing that noon pays attention to customer experience beyond the website. Incidentally, we did not receive any account creation confirmation email after we registered. Customer support chat was very helpful, but will require another review of its efficiency after a few days of operations, as on the first day we waited for more than 10 minutes without any response. The packaging was of very high quality, and was delivered by an employee dressed onbrand as well. The quality of the user experience through the entire customer journey was above regional standards. Branding was perfectly executed from the homepage through to packaging. Performance and overall impression We were impressed by the loading perfor-

mance on desktop. Product pages load very fast (less than one second) and checkout is seamless. However, we found the website on mobile and app was slower than average. There were cross-browser issues, for example Firefox on mobile returned a blank page, and desktop Safari loaded only the help chat on the bottom right hand corner, without any data. Lastly from an SEO perspective, we noted that the product pages were not indexed in Google and they did not have the required metadata so far, although long tail is one of the key ingredients of a successful marketplace. Noon’s launch was worth the wait as the overall front-end execution quality, excellent page load performance, search features, and design execution largely met our expectations. The product catalogue, although not as big as announced, is impressive especially considering the product data is also in Arabic. There were a certain number of important defects to be fixed urgently given the exposure noon has now, mostly concerning product stock, handling of customer data, and user sessions. Noon should swiftly correct the issues and extend their product assortment and content in order to catch up with their direct competitors, especially considering that Amazon has aggressive development plans in the region. This said, noon already showed they will play a key role in the regional landscape, and may well become to e-commerce what Dubai Mall is to retail.

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Sup p lie r N e ws Bakheet Co deploys LeaseFlex to boost financial operations

Bakheet Company for Machinery, a Saudi-based supplier of concrete, road construction, earthmoving, light, and garage equipment, announced the deployment of a major leasing software solution LeaseFlex to boost its operations. LeaseFlex is specialised for the needs of financial leasing, operating leasing, and equipment finance companies. It also increases operational efficiency with a centralised, flexible, and ready-to-use platform with best business practices. The deployment by Asseco SEE (Asee), a part of Asseco Group, the sixth largest software vendor in Europe, included mainly end-to-end delivery of LeaseFlex with CRM integration, pricing and proposal management, credit evaluation and approval, contract management, management of collateral, purchasing management, management of payment plan, billing and collection, third party invoices, insurance management, treasury system, customer risk management, and current/general accounting modules. Khalid Alrifai, chief financial officer of Bakheet, said: “Being a reliable and trusted name in the Saudi market, we needed a cutting-edge service for our business model. That is why we chose LeaseFlex, for it stands out with its flexible infrastructure and the solution is able to meet our extensive line of products.” Hatice Ayas, country leader for Asee Turkey, said: “Co-operating with Bakheet Company is a phenomenal opportunity for mutual growth. Working together since 2014, LeaseFlex has enabled the Saudi firm to benefit from the synergies of their ecosystem.” Established in 1974, Bakheet has become a major player in the region. It boasts key business partnerships with global corporations including Schwing, O.Coughi, Terex, Wirtgen, Vögele, Hamm, Kleemann, Kobelco, Link-Belt, Kaeser, Weber Mt, Linosella, Marcital, and Verticrete. 52 | Logistics News ME | November 2017

Etihad signs deal with IBS Software to implement iCargo IBS Software (IBS) has been selected by Etihad Airways to implement the latter’s award-winning cargo management solution iCargo, following a multi-million dollar, multi-year contract signed in Abu Dhabi last week. The resulting product will see iCargo system manage the airline’s air cargo sales and operations worldwide, automating its network-wide booking, pricing, and capacity management functions with real-time revenue management-based evaluation capabilities. iCargo will also perform real-time shipment status monitoring and quality management as shipments traverse its extensive network. David Kerr, senior vice-president, Etihad Cargo, said: “iCargo will enable us to be available to our customers 24 hours a day through a fully integrated online booking portal. This will significantly enhance our customer service offering. We are also working with IBS to develop the functionality to support our customers with our product provision, loyalty programme, and incentives programme. The development of this platform will allow Etihad Cargo to implement end-to-end integration of processes, provisioning for real-time data and greater operational efficiencies.” VK Mathews, executive chairman of IBS Group, said: “To be chosen yet again by a leading airline is a reiteration that iCargo is the most definitive air cargo management solution in the world today. We welcome Etihad Airways to the growing list of iCargo customers and expect to be a transformational partner in their quest to achieve increased operational efficiencies, cost optimisation, and growth. This alliance is a testimony to our capability, professionalism and commitment to add value to the business requirements of global airlines. This is a strategic milestone for IBS and heralds the beginning of a long and productive business relationship.” IBS was selected to replace Etihad Cargo’s existing system after an intense selection process that spanned several months. Once implemented, iCargo will connect an international team of users across the business and will interface seamlessly with a host of other system applications within the IT landscape of the airline. The real-time availability of operational information through iCargo will help generate actionable intelligence, vastly improving and streamlining the selling process, revenue generation, and quality of service. In addition, through its online booking capability, Etihad Cargo will enable an additional channel that will allow it to be open for business 24 hours a day. Etihad has chosen iCargo as part of its move to a futuristic and fully integrated platform. In the new business model, where IT becomes the enabler, iCargo will address the airline’s need for a solution to manage their inventory sales and operations.

FarEye boosts ‘happiness’ scores for UAE-based logistics companies

FarEye, a global logistics management solution provider, has enabled leading UAE-based logistics companies, Mara Xpress and Century Express, to improve their ‘delivery happiness score’ with its delivery happiness platform. This new platform allows individuals to simultaneously reduce costs and increase workforce productivity with its unique business process management (BPM) capability. Organisations are always looking to further improve and excel. The BPM process involves addressing issues with technology, people, and organisational structure. In just one year of partnering with FarEye, Mara Xpress has completed 500,000 shipments, with a 50% increase in driver productivity. Century Express reduced its carbon footprint and increased first-time deliveries by 10%. Both companies have witnessed an increase in revenue streams and efficiency because of the deployment. Kushal Nahata, cofounder and CEO of FarEye, commented on these successful implementations: “With the GCC transforming itself into a digital economy, and with the rapid growth of e-commerce in the region, it is essential that the logistics industry continues to innovate and keep up with this pace. Logistics firms need to embrace technology-driven

solutions in order to stay relevant. We are proud to have supported Mara Xpress and Century Express in their digital transformation.” FarEye’s BPM engine for mobility in logistics is world’s first and is built to address one of the fundamental issues facing the industry –greater visibility. Backed by artificial intelligence and advanced machine-learning algorithms, FarEye’s capability enables enterprises to customise work flows and blend logistics and IT to make processes ‘smarter’ with cloud and mobility. FarEye is turning software into a human experience by adding real-time visibility to processes, thereby increasing the organisations’ delivery happiness score (enhanced customer experience). Najeeb M. Kabeer, Century Express, said: “FarEye has helped in speeding up deliveries with visibility to the management with excellent support system.” Jeremy M. Skyrme, chief executive officer at Mara Xpress, expressed: “The support from FarEye has been great and they have always made their services easily accessible during anytime of the day. We have witnessed great results from working with FarEye and the team. They have become an extension to our team and we look forward to a long-term relationship.” The FarEye BPM technology provides an intelligent cloudbased web and mobile solution that is flexible, scalable and future-oriented. FarEye is helping businesses realign their operations and logistics processes with minimal disruption by harnessing the power of new technologies like AI, machine learning, and business intelligence.

Ford to showcase Transit Custom chiller van at Gulfood Ford showcased the Transit Custom chiller van at Gulfood, the largest food and beverage manufacturing exhibition in the Middle East. Working closely with RTS – Thermo King’s distributor in the UAE – and Al Tayer Motors, Ford has converted the Transit Custom with a refrigerator solution to demonstrate its suitability for a range of applications, from meat and seafood transportation, to floral delivery and more. Transit Custom’s optimised body offers class-leading load space up to 8.3cbm, a wide side-load door, and a 180˚ rear opening doors. With maximised carrying capability and easy loading/unloading, the Transit Custom significantly increases operating efficiency. Plus, low running costs and class-leading fuel economy of 15 km/l delivered by Ford’s latest 2.2-litre Duratorq TDCi diesel engine ensure Transit Custom offers significant savings in fuel costs. Terry Rayner, director of commercial vehicles at Ford Middle East and Africa, said: “Ford’s Transit Custom refrigerated van delivers class-leading load-carrying ability and access. Engineered with fuel efficiency in mind, it can run up to 1,100 km without refuelling, which over the year, will save our customers an estimated 15 hours refuelling time and give them more time to increase their productivity.” To maximise occupant protection, Transit Custom features ultra-high- strength Boron steel. An enhanced restraint system makes curtain airbags available for the front seat occupants, and it is the first vehicle in its class to receive the maximum 5-Star Euro NCAP Advanced Rewards rating for its innovative safety technologies. The van also boasts the largest clear windscreen glass area of any vehicle in its class, combines a driver-focused cockpit with car-like ergonomics, and boasts innovative stowage features and excellent access. Together with Thermo King, Ford converted Transit Custom with temperature control options, an extremely welldesigned interior, and with the space for two standard sized pallets on the long wheelbase variant, Ford Custom Transit is ready to steal the show. Rayner added: “Ford is pleased to be a part of the Gulfood Manufacturing exhibition, the Middle East’s biggest show of its kind. Transit Custom is an ideal accompaniment to any business that requires refrigeration on the move, and we’re excited to be showcasing its versatility to the tens of thousands of industry stakeholders at the show in Dubai.” Being held at Dubai World Trade Centre between October 31 - November 2, 2017, Gulfood is the largest show of its kind in the Middle East. Ford Custom Transit was on display for the three-day event in the logistics section at the exhibition.

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Save t he dat e

The Month Ahead

The key exhibitions, conferences, and seminars coming up this month





North American Logistics CIO Forum Austin, USA The 19th Logistics CIO Forum is said to be the only conference targeted at CIOs and Senior IT executives from the leading logistics providers across North America. Each year, a niche group of senior-level executives come together for in-depth, pinpointed peer discussion. Key technology issues impacting the logistics industry will be discussed, through in-depth presentations, interactive peer discussions, and unique networking opportunities. The event will see speakers from top companies such as UPS, Fedex, Neovia, Globaltranz, HCL, DB Schenker, plus many more. Interactive panels and presentations will take place on several topics, such as innovative and disruptive technology trends, logistics tech revolution, and blockchain. Dubai Air Show 2017 Dubai, United Arab Emirates The Dubai Airshow began life in 1986 as Arab Air. Since then, the biennial show has grown and evolved to become one of the largest and most important aerospace events in the world. The 2015 edition saw 1,103 exhibitors from 63 countries, over 66,346 trade visitors, and 1,296 international and regional media. The Airshow returns in 2017 with a number of new features to complement the existing show, including the UAS Summit, Space Pavilion, Cargo Zone, and Airport Solutions in addition to the fourth edition of GATE - the Gulf Aviation Training Event. The show will once again welcome visitors, exhibitors, and delegations in their thousands to Dubai – the world’s global aerospace hub.

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Supply Chain and Logistics Innovation Summit





Singapore Supply Chain Innovation Summit 2017 Asia Pacific (SCAP2017) and Logistics Innovation Summit 2017 Asia Pacific (LIAP2017) will come together as one, under the theme ‘Driving the changes to next generation supply chain and logistics’. Attendees will have the opportunity to learn about various topics across supply chain trends and innovation, supply chain strategy, supply chain ecosystem, digital transformation, and current technology applications like blockchain, AI etc. Participating companies include Microsoft, Li & Fung, Lazada Group, Schneider Electric, and Nestle, amongst others. Intermodal Europe 2017 Amsterdam, Netherlands Intermodal Europe is an exhibition and conference for companies associated with the container and intermodal industries, and covers all areas of container transport and logistics across road, rail, and sea. The event provides a business forum, bringing together thousands of intermodal industry professionals, including shipping lines, shippers, container professionals, and those involved in the intermodal supply chain. Major discussion topics will include freight rates, trends in container shipping, future refrigeration technologies, and economic perspective for the container industry. confirmed exhibitors include CIMC, Daikin, Flex-Box, Orbcomm, Maersk Container Industry, Thermo-King, and Unit 45, among others.

Logistics News ME - November 2017  

The November issue of Logistics News ME features Zaid Alqufaidi, managing director of ENOC Retail, on the cover. He discusses ENOC's journey...