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O P - E D Finding opportunities in the midst of chaos I N T E R V I E W Setting sigh on the future I N N O V A T I O N Inspection drone technology debuts in the UAE CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE APRIL 2021 EMIRATE GROUP’S CARGO DIVISIONS CIRCUMVENTING THE PANDEMIC AND ITS EFFECTS TRANSFORMING CHALLENGES INTO OPPORTUNITIES
A MEMBERS OF EMIRATES TRANSPORT BUSINESS CENTERS:
LOGISTICS NEWS ME | APRIL 2021 | 3 TRANSFORMING CHALLENGES INTO OPPORTUNITIES 14 INTERVIEW SETTING SIGHT ON THE FUTURE Local eCommerce platform Let’s Tango has seen a fair share of ups and downs, here CEO Alex Tchablakian tells us what sets them apart from competitors and the firm’s plans to boost eCommerce in the region 22 SUPPLY CHAIN DELIVERING WHERE IT MATTERS Members of supply chain industry in the region share lessons learned from UAE-led global COVID-19 vaccine rollout in a recent webinar hosted by Messe Frankfurt Middle East 26 RETURN LOADS BOOSTING FEMALE REPRESENTATION IN LOGISTICS UK-based haulage exchange marketplace ReturnLoads shares how the transport and logistics sectors can encourage more women into their workforce 28 OP-ED FINDING OPPORTUNITIES IN THE MIDST OF CHAOS Naveen Joseph, Co-Founder, VP Strategy & New Markets 30 E-MOBILITY GAINING NEW GROUNDS IN GREEN TRANSPORTATION The momentum to promote green mobility is gaining steam, manufacturers, governing bodies, and transport authorities and companies are exploring this field with latest technologies and innovative solutions 34 INNOVATION INSPECTION DRONE TECHNOLOGY DEBUTS IN THE UAE For the first time state-of-the-art inspection drone technology is made available to industrial asset owners in the UAE 36 FREE ZONES REPORT GLOBAL FREE ZONES aim to become ‘future ready’ We speak to Emirate Group’s cargo divisions to learn how they have spent the last 12 months circumventing the pandemic and its effects and using obstacles to create opportunities 18 IN THIS ISSUE 22 30
4 | LOGISTICS NEWS ME | APRIL 2021 WWW.CBNME.COM In this issue we also feature Emirates SkyCargo and dnata Cargo – they re- veal how they’ve worked around this obstacle and implemented new meas- ures to reinforce their businesses and the logistics sector. Key members of the region’s supply chain industry share lessons from the UAE-led global COVID-19 vaccine rollout and how they plan to deliver more than 20 billion doses across the globe by the end of 2021. We also discover how the UAE and vehicle manufacturers across the globe are focusing on green mobility and sustainable modes of transport. With March being Women’s History Month, we learn from Return Loads the lack of female representation in the industry, as a woman I find this shameful that even in 2021 we con- stitute just single digit percentile com- pared to our male counterparts. Look- ing ahead, I hope to shine the torch on females in this industry - not just in management but across all roles. I look forward to hearing from you. All rights reserved © 2021. 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 UPP H ello, I’m pleased to make your acquaintance as we embark on a journey to showcase the latest and most relevant updates from the industry. It’s been exactly a year since everything around us changed drasti- cally from as simple as dining out to shopping and travelling. eCommerce platform Let’s Tango tells us how the pandemic has boosted online shopping and the digital mar- ketplace. A NOTE FROM THE EDITOR Jochebed Menon Editor, Logistics News Middle East jochebed@bncpublishing.net SUBSCRIBE subscriptions@bncpublishing.net For all commercial enquiries, contact sales@bncpublishing.net T +971 50 440 2706 PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 Keep up to date with all the latest news, features and much more on our website and social media platforms. CBNME.COM CBNME @CBNME CONSTRUCTION BUSINESS NEWS ME EDITOR’S NOTE LNME CEO Wissam Younane wissam@bncpublishing.net DIRECTOR Rabih Najm rabih@bncpublishing.net GROUP PUBLISHING DIRECTOR Joaquim D'Costa jo@bncpublishing.net +971 50 440 2706 BUSINESS DEVELOPMENT DIRECTOR Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818 MANAGING EDITOR Kasun Illankoon kasun@bncpublishing.net EDITOR Jochebed Menon EDITORIAL DESIGN Christian Harb MARKETING EXECUTIVE Aaron Joshua Sinanbam aj@bncpublishing.net PHOTOGRAPHER Alexander Bungas
8 | LOGISTICS NEWS ME | APRIL 2021 WWW.CBNME.COM REGIONAL NEWS LNME I n support of sustainable mobility, Berlin- based micro-mobility firm TIER launched its hi-tech eScooter fleet in Qatar. TIER is the first micro-mobility provider in the Middle East to utilise a fully climate- neutral business model. It is based on a swappable battery technology. TIER operates in more than 90 cities across 11 countries. Being TIER’s second country in the Mid- dle East where the company pursues its mission to change mobility for good, Qatar will be at the frontline of deploying sustain- able and green transport infrastructures. The micro-mobility provider will offer its scooters, which will be located close to central transport hubs as well as other busy spots of Doha, on a 24/7 basis. Framework conditions which include speed control and a designated business area with eScooters in prime locations have been defined and implemented in close collaboration with city officials. Amir Melad, General Manager Middle East for TIER, said: “Launching in Doha and bringing our service to Qatar as the 11th country worldwide marks an impor- tant step in our long-term commitment to foster sustainable cities across the Middle East and globally. With our eScooters, we now offer residents and visitors of Doha an environmentally friendly alternative to seamlessly move around the city with zero carbon emissions. “Especially in the current COVID situ- ation, the use of our eScooters makes it easy for users to comply with WHO’s recommendations for social and physical distancing.” TIER’s e-scooters boast of swappable battery technology, which eliminates the need to transport scooters to-and-from warehouses for charging. The local TIER team of permanent employees swiftly re- places empty batteries with freshly charged ones on-site, thereby significantly reduc- ing transportation costs and harmful CO2 emissions. TIER’s operations model has enabled the company to remain climate- neutral since January 2020. TIER eScooters in Doha are equipped with an array of features such as the largest front wheel, a wider footplate, a wireless phone charger, dual drum brakes and a double-suspension mechanism, ensuring the ride is as convenient, smooth, and safe for all users. To celebrate its first launch in Doha, TIER will give first-time riders two complemen- tary unlocks and 30 free minutes of usage added to their account when registering with the code “TIERDOHA”*. TIER LAUNCHES CLIMATE-NEUTRAL ESCOOTER SERVICE IN DOHA
LOGISTICS NEWS ME | APRIL 2021 | 9 REGIONAL NEWS S audi Basic Industries Corporation (SABIC) has extended its contract with Tristar Group’s joint venture in Saudi Arabia, United Stars, for an additional period of two years. Tristar’s mandate will be to continue to transport liquid industrial gases to SABIC’s diverse portfolio of clients across the GCC. Tristar, a global integrated energy logistics company, has a long-standing relationship with SABIC. In December 2017, United Stars Country Manager Aous Ali signed a three-year contract to transport liquid gases from SABIC’s plants in Jubail in the Eastern Province and Yanbu in the Western Province to SABIC affiliates inside the Kingdom, Gulf Cooperating Council (GCC) and Jordan. Under the initial contract, Tristar had invested in 30 gas-carrying road tankers and Cryogenic ISO tankers to meet SABIC’s requirements, however, with the extension, an additional 11 tankers will be deployed this month. Furthermore, in the second phase of the contract, the company will provide around 20 tankers for an additional 28,000 MT requirement, which will be deployed in the second quarter. Eugene Mayne, Group CEO of Tristar said: “We pride ourselves on our long- standing relationships and repeat business with our blue-chip clients globally, which have enabled our business to grow steadily, leading to a strong track record of growth with a consistent EBITDA margin between 20.1% to 22.8% in the years 2018 to 2020. “The extension of our contract with SABIC, a leading player in the Middle East, is testament to our expertise in energy logistics, and plays a key role as we continue to grow our business in Saudi Arabia. We look forward to continuing to demonstrate best practice in safety that ensures a consistent level of safe and high-quality service to SABIC and all our customers, and I look forward to reporting on further business developments in due course.” SABIC EXTENDS CONTRACT WITH TRISTAR GROUP’S JV, UNITED STARS
10 | LOGISTICS NEWS ME | APRIL 2021 WWW.CBNME.COM E mirates SkyCargo and the Dubai Civil Aviation Authority (DCAA) have signed an MoU to streamline processes for the transportation of Dangerous Goods (DGs). Under the terms of the agreement, the two entities will work together to strengthen mechanisms to proactively share information on certain classes of DG booked for transport on Emirates SkyCargo through Dubai. This will complement the information that is already provided as part of the Dangerous Goods Declaration submitted to the DCAA as part of the approvals process for the transportation of goods classified as DG in accordance with IATA Dangerous Goods Regulations. The MoU also aims to develop an approval process for transporting such cargo, creating better efficiency, and reducing wait-times pre transportation. Nabil Sultan, Emirates Divisional Senior Vice President, Cargo, said: “We are delighted to be stepping up our cooperation with the Dubai Civil Aviation Authority for the coordination of information sharing and best practices around the transport of Dangerous Goods. “Safety is one of the key operational pillars for Emirates and through this agreement we will work closely with the authorities to ensure that our DG operations are efficient and comply with all safety requirements.” Mohammed Abdulla Lengawi, Executive Director, Aviation Security and Accident Investigation Sector, DCAA, said: “We are pleased to cooperate with Emirates SkyCargo through the signing of the MOU which will link the Dubai Civil Aviation Authority system with that of Emirates SkyCargo and contribute to streamline processes for transport of Dangerous Goods making it easier for customers including air freight agents to obtain a No Objection Certificate (NOC) for transporting the goods. We have issued over 26,090 NOCs through the DCAA system between 2018 and 2020. “The memorandum ensures safety and a high degree of quality in the field for transporting dangerous goods, which serves various fields of work globally, as Dubai represents a strategic location and a logistical centre for air freight.” EMIRATES SKYCARGO COLLABORATES WITH DCAA ON TRANSPORT OF DANGEROUS GOODS REGIONAL NEWS LNME
LOGISTICS NEWS ME | APRIL 2021 | 11 REGIONAL NEWS D ubai Customs signed an agreement with Jebel Ali Free Zone (JAFZA) to enable the latter to receive all the services and benefits Dubai Customs pro- vides through its cross-border eCommerce platform. The innovative platform utilises block chain technology to integrate and auto- mate operations between Customs, Free Zones, logistics, and courier companies. It is the first of its kind in the region, and it aims to help the emirate become a global hub for e-commerce and encourage e- commerce companies set their businesses in Dubai. This follows the leadership’s vision of in- creasing Dubai based companies’ local and regional distribution share of e-commerce trade in the emirate to Dhs24 billion by 2022 through decreasing cost of eCom- merce operations by 20%. eCommerce is expected to contribute Dhs12 billion to the emirate’s GDP by 2023. Abdullah Mohammed Al Khaja, Executive Director of Clients Management Division, Dubai Customs and Abdulla bin Damithan, Chief Commercial Officer, DP World, UAE Region signed the agreement, which will see Dubai Customs’ employees provide the eCommerce services to JAFZA to en- sure best performance in enhancing Dubai external trade. “Dubai Customs looks forward to devel- oping the local competencies in eCom- merce sector in support of the advancing eCommerce activity in Dubai and its success in attracting regional and global eCommerce platforms into the emirate,” said Al Khaja. In the first half of 2020, the number of eCommerce parcels increased to 4.3 mil- lion marking a staggering 150% growth compared to the corresponding period in 2019. He added: “We are enthusiastic to keep abreast with this growth and to help cus- tomers easily access the world’s markets in support of Dubai’s external trade and its role as a global hub for trade and tourism.” Al Khaja further said: “Signing the agree- ment with JAFZA will help increase number of beneficiaries and will ensure best eCom- merce services are delivered to JAFZA companies.” Free Zone trade in Dubai touched Dhs227 billion in the first half of 2020, which makes 41% of the total trade value. Commenting on the same, Bin Damithan said: “eCommerce and retail are promising sectors at JAFZA. The sectors combined grew 10.6% in the first half of 2020 making Dhs37.6 billion in revenues. There is also 300% increase in demand on eCommerce services. To this end, we contact compa- nies registered with us to help them turn their business online.” JAFZA TO USE DUBAI CUSTOM’S ECOMMERCE PLATFORM TO BOOST TRADE Abdullah Mohammed Al Khaja, Executive Director of Clients Management Division, Dubai Customs
12 | LOGISTICS NEWS ME | APRIL 2021 WWW.CBNME.COM E tihad Cargo and EFL (Expolanka Freight), a global supply chain company, have transported a critical consignment of vaccines from India to Egypt. Leveraging Etihad Cargo’s IATA CEIV certification for pharmaceutical logistics and capability to facilitate temperature-sensitive cargo shipments between +25 C and -80 C, and EFL’s CEIV and GDP compliance, the two enti- ties collaborated to carry a consignment of 12,475,000 Tetanus and Diphtheria vaccine doses produced in India, the largest vac- cine manufacturing origin according to WHO. Maintaining the shipment integrity, EFL handed over the shipment to Etihad Cargo’s care in Mumbai, which transited the consignment through its hub at Abu Dhabi International Airport en route to Cairo, maintaining the required +2 C to +8 C temperature ranges. “This shipment underlines Etihad Cargo’s capability to transport temperature-sensitive cargo across the network and reinforces Etihad Cargo standing as an IATA CEIV Pharma-certified carrier,” explained Martin Drew, Senior Vice President Sales and Cargo, Etihad Aviation Group. “Working with partners such as EFL, Etihad Cargo leverages a collective of expertise and extensive network capabilities to provide essential logistical solutions to where they are needed most.” “Supply chain resilience stems from having the right formula of partners, products and solutions, as well as a deep alignment on shared values and complimenting capabilities,” said Senthilna- than Shanmugam, Group CEO, EFL. “With Etihad Cargo, we are able to deliver on our commitments and strive towards a safe and secure world for all.” ETIHAD CARGO AND EFL DELIVER TETANUS AND DIPHTHERIA VACCINES TO EGYPT REGIONAL NEWS LNME
LOGISTICS NEWS ME | APRIL 2021 | 13 REGIONAL NEWS I n partnership with Pure Health and Ta- mouh Healthcare, Abu Dhabi Airports have launched rapid free COVID-19 PCR testing for all arrivals, except those in transit, with results provided in around 90 minutes. The new state of the art RT-PCR lab offers testing within Abu Dhabi International Airport (AUH) to facilitate air travel procedures and support quarantine tracking procedures. Designed to ensure the health, safety, and wellbeing of travellers and staff at Abu Dhabi airport, the new Real Time Polymerase Chain Reaction (RT-PCR) testing process is free for arriving passengers and offers results in approximately 90 minutes. The laboratory has the capacity to test more than 20,000 travellers and staff per day. Shareef Hashim Al Hashmi, Chief Executive Officer of Abu Dhabi Airports, said: “The introduction of the RT-PCR Covid-19 testing is a milestone achievement in our ongoing efforts to facilitate the safe resumption of international air travel and support the recovery of the aviation industry.” All passengers arriving at Abu Dhabi International Airport through both terminals 1 and 3 will be tested at the AUH PCR testing facility. Results of the Covid-19 tests will be shared by SMS and WhatsApp, as well as being available on the Alhosn mobile application. Passengers can leave the airport once they have finalised the PCR test processes. Passengers who receive a negative PCR test and are arriving from the list of ‘green’ countries outlined by the government of Abu Dhabi, will not need to self-isolate. Those arriving from countries not on the ‘green’ list will have to self-isolate for a pe- riod of ten days and will require a quaran- tine wristband fitted at the PCR testing tent attached to the airport. Passengers transiting through the airport will not be tested prior to departing for their final destinations. The lab, being developed and oper- ated by Pure Health – the region’s largest laboratory operator – and the healthcare and passenger facility, being developed by UAE-based Tamouh Healthcare, will have the capacity to test more than 20,000 travellers per day. The 4,000 square metre facility will operate around the clock with up to 190 staff. In addition, the airport has deployed touch-less elevator technology, SterixEco Gates sterilisation tunnels, thermal scanning cameras, as well cameras with facial recog- nition capabilities that alert staff if passen- gers or visitors to the airport are displaying symptoms of Covid-19 or not wearing face masks. FREE RAPID COVID-19 TESTING FOR ALL ARRIVAL PASSENGERS AT ABU DHABI AIRPORT
14 | LOGISTICS NEWS ME | APRIL 2021 WWW.CBNME.COM REGIONAL NEWS LNME F rench commercial truck manufac- turer revealed in its 2020 results that despite the pandemic the firm main- tained its market share and recorded a 12% increase in orders compared to the previous year. Over 90% of the Renault Trucks sales network remained open at the height of the pandemic. On the European market for vehicles over six tonnes, the truck manu- facturer recorded a stable market share of 8.5% in 2020. Market share remained un- changed in the over 16-tonne segment at 8.8% and in the mid-range segment (6-16 tonnes), it rose by 0.3 points to 6.6%. Internationally, Renault Trucks recorded a 16% increase in its invoiced sales. 2020 was marked by strong recovery in Algeria, a historic market for Renault Trucks, with 1,100 trucks invoiced, up 80% on 2019. Due to its assembly plant in Meftah, the French manufacturer has consolidated its leading position in Algeria with a 47.8% share of the over-16 tonne market for Euro- pean manufacturers. Renault Trucks has also been consistently promoting its Used Trucks unit, which has seen an uptake during the pandemic. The manufacturer recorded a record volume of invoicing with 10,308 used vehicles in- voiced, an increase of 9% on 2019. It has significantly increased its perfor- mance in terms of used truck services, with service penetration up 4 points in 2019 to 28%. The number of used trucks sold with a Selection warranty contract also rose 25% in 2020. Renault Trucks is also adopting an entirely innovative approach to the used vehicle market. This strategy is new in the market and is based on upcycling and recycling. The best illustration of this is its Used Trucks Factory, a specialised workshop for the transformation of used trucks integrat- ed into the Bourg-en-Bresse manufacturing site. The conversions carried out there are the subject of specific R&D studies and, in terms of the industrial manufacturing process and quality control, meet the same high standards as those applied to the manufacture of new vehicles. 500 ad- ditional vehicles were manufactured at the Used Trucks Factory in 2020 and new mod- els were launched this year, such as the Re- nault Trucks T X-64, a vehicle dedicated to the African and Middle Eastern markets. Renault Trucks is also pursuing the imple- mentation of its own recycling and reuse of parts for heavy goods vehicles, with Indra Automobile Recycling. This project has been approved by the French ADEME environmental agency. The firm has set ambitious targets for electric mobility in terms of sales volumes. It announced that by 2025, electric vehicles will represent 10% of its total vehicle sales and 35% by 2030. The goal is to provide 100% of its vehicles without fossil fuels by 2040. The manufacturer is making huge invest- ments to achieve this goal. In March 2020, it started series production of its second generation of electric vehicles at the Blainville-sur-Orne plant and now boasts the widest electric range on the market. Renault Trucks D Z.E., D Wide Z.E. and Master Z.E. constitute a range that extends from 3.1 to 26 tonnes, meeting the urban requirements of delivery, distribution, and waste collection. To help its customers accelerate their energy transition, Renault Trucks has set up a new sales organisation dedicated to electric mobility. RENAULT TRUCKS TO GO 100% ELECTRIC BY 2040
LOGISTICS NEWS ME | APRIL 2021 | 15 REGIONAL NEWS F ollowing the global launch of the new Generation Truck (TG) last year, MAN Truck & Bus has introduced the TG range for its markets in the Middle East, Africa, and Latin America. The development of the new trucks was based on custom- er feedback, to provide them vehicles that meet their operational requirements. The new range showcases MAN Truck & Bus as a provider of sustainable transport solutions. It underlines the competence of MAN’s engineering team that has delivered robust, reliable, and efficient vehicles. Joerg Mommertz, Senior Vice President, Head of Sales Area Mid- dle East, Africa and Latin America (MEA&LA), MAN Truck & Bus SE, said: “The launch of the new range is a milestone moment for all of us. It reflects MAN’s focus on helping our customers in their business. These trucks are built to be reliable; able to withstand rugged use over their typical operating life, while delivering best- in-class performance. As a result, customers get the optimum up- time and attractive Total Cost of Ownership.” He added: “We have on offer a three-year warranty on the com- plete driveline on truck tractor models. We also have service con- tracts that can help customers in terms of preventive maintenance, predictable costs, optimised vehicle up- time and roadside/on-site assistance. Overall, we are offering the best ownership experience to customers.” MAN TRUCK & BUS LAUNCHES NEW RANGE OF TRUCKS IN MIDDLE EAST, AFRICA, AND LATIN AMERICA
16 | LOGISTICS NEWS ME | APRIL 2021 WWW.CBNME.COM INTERVIEW LNME “WE ALWAYS AIM TO EDUCATE OUR VENDORS AND ALLOW EVERYONE TO FUNCTION IN A FAIR MARKETPLACE ENVIRONMENT. AS PER OUR BUSINESS MODEL, WE DO NOT ALLOW MULTIPLE VENDORS TO LIST THE SAME PRODUCTS ONLINE AND ENSURE THAT EACH SELLER PRACTICES A PROPER GUIDELINE TO LIST THEIR GENUINE PRODUCTS.” Alex Tchablakian CEO, Let’s Tango 16 | LOGISTICS NEWS ME | APRIL 2021 WWW.CBNME.COM
LOGISTICS NEWS ME | APRIL 2021 | 17 SETTING SIGHT ON THE FUTURE | LOCAL ECOMMERCE PLATFORM LET’S TANGO HAS SEEN A FAIR SHARE OF UPS AND DOWNS Tell us about Let’sTango.com LetsTango.com is a homegrown inde- pendent marketplace. We cater to a large number of international audiences and currently have an array of exclusive brands across 50 different categories in our brand roster from all over the globe. We started our journey in 2013 as an online store selling electronics, whereas today we have transformed into a bou- tique eCommerce marketplace provid- ing niche products and services, not only in the UÆ but overseas as well. I believe we have seen success in building a solid marketplace for brands who can reach out to customers that they may not have been able to on their own. And, with our drop shipping model we can minimise any risks and costs while offering both convenience and practi- cality. Along with our active drop shipping vertical, we have our own warehouse. Located in Dubai, where we stock all our unique products exclusively on LetsTango.com, both on consignment and our own stock. What makes Let’sTango.com unique from the rest of the eCommerce platforms in the region? We are consistently investing in inno- vative concepts and are on the lookout for new partnerships for business growth. Recently, we signed our first ever deal with Aramex to power cross- border eCommerce in the region. This agreement will enable both companies to deliver more than 1,000 authentic and exclusive products in the UÆ. We have just established multiple Thai vendors on our platform and will be expanding to other regions in the coming months. Through this exclusive partnership, we are aiming to generate revenue of over Dhs20 million in a bid to exponentially fuel eCommerce in the Middle East region. This bears resemblance to our past partnership with telecom service pro- vider du, who approached us to setup their eShop. We have also had dealings with American Express, banks, Aimia, Air Arabia, and 3D printing services companies. We always aim to educate our vendors and allow everyone to function in a fair marketplace environment. As per our business model, we do not allow multiple vendors to list the same prod- ucts online and ensure that each seller practices a proper guideline to list their genuine products. The past year has been a challenge for businesses across the world. How has the eCommerce sector fared? The year, 2020, has been challenging for all businesses. I have been hearing a lot that the pandemic has not affected our area of business, but that is not the case. As my business is also my partner’s busi- ness. It is always a two-way street. It is true that we were fortunate enough to be able to operate during these periods, some of our partnered vendors were not as fortunate. This resulted in them either being forced to cut costs, downsize or even worse, shut down shop. As we are a marketplace, we are dependent on our vendors to succeed, as the more vendors we have the bigger our catalogue. In this same period, custom- ers only had one sales channel for them to purchase their necessities – online. SETTING SIGHT ON THE FUTURE >>> Local eCommerce platform Let’sTango.com has seen a fair share of ups and downs, here CEO Alex Tchablakian tells us what sets them apart from competitors and the firm’s plans to boost eCommerce in the region
18 | LOGISTICS NEWS ME | APRIL 2021 WWW.CBNME.COM INTERVIEW LNME So, while we have absorbed an increase in demand, our supply was limited. Now that restrictions have eased, we are back to operating just as we did be- fore the pandemic. What we have also noticed are the behavioural changes of our customers as well. They are a lot more welcoming to payment in advance as opposed to cash on delivery options. Since its inception, what are some of the challenges LetsTango.com has faced? In the beginning, we had a lot of dif- ficulties with fraudulent orders. Even with 3-D Secure, banks could not fully accept that they were genuine, and it was up to the merchant to determine themselves and take responsibility. Having endured this difficult period, technology has caught up, and we were able to put in place a fraud prevention module in our payment gateway that is making our lives a lot easier now. In terms of our challenges in digital marketing, we could no longer main- tain the modest budget we had in the early stages. The competition was too strong with the entrants of large companies with a lot of funding, and LetsTango.com being a self-funded start-up, had to resort to more creative marketing campaigns without having to put too much strain on our budget. Has there been a demand in services since the start of the pandemic? Yes, we have seen good growth as com- pared to the previous year. Fortunately, we were able to maintain business with our redemption partners during this period and vice-versa. Many consumers used loyalty card points for products as opposed to flights. Our vendors needed to adapt as well due to the outbreak, some approached us to educate them on creating their own online stores and have in turn hired us as consultants or to create a store for them. Which we were happy to do, and I am content that their pro- jects are powered by LetsTango.com. This has become quite popular, and we decided to create a proper eCom- merce white box service. In terms of social distancing and hygiene, we have followed the proper strict social distancing norms. Hygiene was our priority, especially with handling and delivering any products to customer. What are some of the most selling items on your platform? As experts in electronics, we have seen a good growth in this category, where smartphones, laptops, wire- less headsets, gaming machines and gadgets took the lead. We also made extra efforts to expand and were happy with the traction we received on popular Asian fashion products, Korean skin care products, gym equip- ment and even assorted and premium chocolates. Do you plan to expand to other cities in the region? Yes, we have plans to expand our geographical presence and would like to enter Riyadh, Saudi Arabia. We are currently working on this now. What are your plans for 2021? We will continue to invest in more innovative concepts that reflect our core values. Expansion is vital for our overall growth. We aim to undertake a lot of segmenting, AI driven, tech upgrades for our website and mobile application. This year, our aim is for more partnerships with other brands who share similar synergies and value as ours. IN THE BEGINNING, WE HAD A LOT OF DIFFICULTIES WITH FRAUDULENT ORDERS. EVEN WITH 3-D SECURE, BANKS COULD NOT FULLY ACCEPT THAT THEY WERE GENUINE, AND IT WAS UP TO THE MERCHANT TO DETERMINE THEMSELVES AND TAKE RESPONSIBILITY.
here’s to a cleaner future Choosing a gas powered truck will put you and your fleet in the forefront of sustainable truck operations, reduce your CO2 emissions and achieve Euro 6 Emission Legislation without using Adblue or Particulate Matter. Well suited for both urban and regional operations. It can be matched with R, G, L or P cabs and combined with either the Scania Opticruise gearbox or automatic transmissions. For more information about our Alternative Fuels options, please visit www.scania.com/ae/en/home/prod- ucts-and-services/articles/alternative-fuels.html Natural gas (CNG/LNG) Natural gas is methane from pockets in the Earth’s crust. Although it is a fossil fuel, it emits up to 15% less CO2 compared to regular diesel. 15%*
20 | LOGISTICS NEWS ME | APRIL 2021 WWW.CBNME.COM I t’s been a year since the pandemic entered our lives and lockdowns were implemented across the globe, bringing air travel to a grinding halt. Dubai’s flag carrier Emirates was faced with global flight restrictions in a matter of weeks this not only im- pacted air travel but cargo services too. However, both Emirates SkyCargo and dnata Cargo stepped up to the occasion by finding unique methods to assist the logistics sector by providing efficient, reliable, safe, and secure cargo services. Nabil Sultan, Emirates Divisional Senior Vice President, Cargo, says: “2020 was a year unlike any other for the aviation and the air cargo industry. Although the challenges posed by the almost near complete suspension of passenger flights and the resulting drop in cargo capacity were massive, the in- dustry reacted quickly to mitigate some of these challenges and keep com- munities and economies connected to the goods they required whether these were medical supplies and PPE to fight COVID-19 or food items or commodi- ties for manufacturing and industry.” Uninterrupted services Both the Emirates Group divisions have upped their offerings to ensure uninterrupted delivery of much needed supplies. Bernd Struck, Senior Vice President, UAE Cargo and DWC Airline Services, dnata, tells us: “We have continued to deliver reliable and safe cargo services to support and create value for airline customers amid COVID-19 challenges. “Although passenger flights have been significantly reduced globally, air cargo demand has remained relatively stable and we have been working closely with government authorities, customers, and suppliers to maintain global trade and the flow of essential goods including PPE, life-saving medi- cal supplies and pharmaceuticals.” dnata Cargo was swift to respond to the strong air cargo market demand for the rapid, reliable, and efficient transportation of essential commodi- ties with several airlines introducing additional cargo capacity during the pandemic by using passenger aircraft with seats fully or partially removed from the cabin. “To adapt to changing customer needs, we enhanced services, improved processes and trained more than 500 employees to only handle passenger planes carrying cargo safely and ef- ficiently,” he reveals. Meeting the demand Following the ban on air travel, Emir- ates SkyCargo had to find a way to get its cargo delivered. Nabil explains: “We deployed our Boeing 777-300ER passenger aircraft as cargo aircraft to make up for some of the lost capacity and to meet the surging demand for the urgent transport of PPE and other medical equipment during the early stages of the COVID-19 pandemic. “Because this had never been done in the history of our operations, our teams had to work extremely hard to develop a new route network and to work with the relevant authorities and partners to operate these cargo flights offering about 40-50 tonnes of capacity per flight. Given the continued demand for cargo capacity, SkyCargo introduced loading of cargo on the passenger seats and overhead cabins in its passenger aircraft and eventually, it followed this up with its ‘mini freighters’, Boe- ing 777-300ER with passenger seats removed from the Economy Class to make room for more cargo inside the cabin. “We also operated cargo-only flights on our A380 aircraft, making optimal use of our aircraft fleet to meet the demands to transport cargo across the world. We also rapidly reinstated our destination network, restoring our cargo connectivity to more than 100 destinations between March and June 2020,” he says. We speak to Emirate Group’s cargo divisions to learn how they have spent the last 12 months circumventing the pandemic and its effects and using obstacles to create opportunities COVER STORY LNME Transforming challenges into opportunities >>>
LOGISTICS NEWS ME | APRIL 2021 | 21 Nabil Sultan, Emirates Divisional Senior Vice President, Cargo TRANSFORMING CHALLENGES INTO OPPORTUNITIES | EMIRATE GROUP’S CARGO DIVISIONS “We deployed our Boeing 777-300ER passenger aircraft as cargo aircraft to make up for some of the lost capacity and to meet the surging demand for the urgent transport of PPE and other medical equipment during the early stages of the COVID-19 pandemic.”
22 | LOGISTICS NEWS ME | APRIL 2021 WWW.CBNME.COM COVER STORY LNME Responding to the crisis After developing a network and solu- tion for providing adequate air cargo capacity to meet customer require- ments, SkyCargo focused on planning for what was coming next and as early as August 2020, it put into place a strategy dedicated to harnessing its strengths, capabilities including its ‘fit for purpose’ GDP certified infra- structure at its hub, to help distribute vaccines to fight COVID-19. Nabil notes: “In October 2020, we announced that we were setting up the world’s largest dedicated airside GDP certified hub for the distribution of COVID-19 vaccines. Overall, we have close to 15,000sqm of GDP certified temperature-controlled space that we can use for the storage of COVID-19 vaccines. “The aim is to utilise our infrastruc- ture as a global hub for vaccine distri- bution specially to developing countries where there may be limited sophisticat- ed cool chain infrastructure for storing COVID-19 vaccines. We can store a large quantity of vaccines in Dubai and then distribute them regularly on our flights to various destinations.” Earlier this year, SkyCargo announced its involvement with the Dubai Vaccine Logistics Alliance to expedite COV- ID-19 vaccine distribution to develop- ing countries. “We are working with DP World, International Humanitarian City and Dubai Airports to support WHO’s COVAX initiative to distribute COVID-19 vaccines equitably. Dubai’s strategic geographic location, well de- veloped infrastructure, track record of each partner makes the alliance unique and Dubai at the centre of the global response to the pandemic,” he reveals. SkyCargo also announced its partner- ship with UNICEF to distribute COV- ID-19 vaccines in February and since then it has transported COVID-19 vaccines to multiple markets. He says: “As we look to the future, one of our priorities will continue to be the rapid and secure distribution of COVID-19 vaccines. This is a priority because without the vaccines, people and communities cannot get back on their feet and this is essential for consumer confidence and economic activity to bounce back. This will also feed into the long-term stable growth of the air cargo industry. “The last year has proven to the world that air cargo plays a crucial role in the rapid and effective transporta- tion of urgently required commodities and air cargo will continue to play its role as a seamless conveyor belt for transporting goods across different markets in the years to come.” dnata Cargo too is playing a key role in the transportation of vaccines. Bernd elaborates: “Having invested signifi- cantly in our cold chain and pharma- handling capabilities in recent years, we are well positioned to move every pharma and vaccine shipment safely and efficiently, in compliance with the highest international standards. Our certified warehouses are capable of handling large volumes and can be fur- ther expanded when demand increases, likely in the second half of the year. “We have joined forces with Dubai Airports and GMR Hyderabad Inter- national Airport to support them in creating a focussed COVID-19 vaccine distribution corridor.” Bernd Struck, Senior Vice President, UAE Cargo and DWC Airline Services “To adapt to changing customer needs, we enhanced services, improved processes and trained more than 500 employees to only handle passenger planes carrying cargo safely and efficiently.”
LOGISTICS NEWS ME | APRIL 2021 | 23 Going above and beyond dnata Cargo is heavily investing in lat- est technology and innovative solutions to boost its cargo offering. It recently introduced effective procedures across a range of aircraft types. Bernd says: “With no existing industry standards to refer to, we built the necessary pro- cedures from scratch in collaboration with key stakeholders, including IATA and several airline customers. “To ensure the procedures were safe, trials were conducted at Dubai airport (DXB) using various loading and unloading methods across both narrow and wide-body aircraft. This allowed us to identify the best and safest pro- cedures to serve cargo-in-cabin flights. Since March last year, our teams have handled over 5,000 cargo-in-cabin flights, safely moving 50,000 tons of shipments at DXB.” The division also recently launched a new freight handling platform, Ap- pointment and Dock Management (ADM), across its Dubai operations. The cloud-based platform ensures improved planning, efficient processing, and end-to-end transparency of the en- tire cargo journey, delivering significant benefits for all freight forwarders. Bernd explains: “ADM enables freight forwarders to book an appoint- ment with the cargo terminal to deliver and pick up consignments. The system considers multiple parameters – such as shipment characteristics, flight details, vehicle types, and other business-rele- vant factors to determine the optimal slot for delivery or acceptance of goods. A unique feature of the digital platform is its capability to intelligently predict the duration and suggest an appropriate slot based on the historical behaviour of the forwarders and the flight schedule.” This has reduced the average freight handling time at dnata’s cargo termi- nals by more than 60% to an average of 30 minutes. The platform also al- lows terminal operators to see demand in real-time, enabling them to plan the required resources and serve customers just in time. He adds: “ADM seamlessly inte- grates into Calogi, our existing trading platform for the air cargo community, which connects over 800 supply chain partners with 2000 users.” More to come Looking ahead, dnata will continue to invest in cutting-edge technologies to further improve efficiency and offer more value to its customers. Bernd elu- cidates: “We are upgrading our cargo community platform, Calogi, to the lat- est cloud-based technology, introduc- ing additional benefits to our growing air cargo community in the UAE. “We will also continue to invest in training to upskill and reskill our staff to further optimise our resources and maximise efficiency across our opera- tions. We will cooperate closely with the Dubai government and our local stakeholders to support the 21st-cen- tury reincarnation of silk road traffic and optimize sea/air traffic through the emirate by introducing automation and pricing schemes.” “ADM enables freight forwarders to book an appointment with the cargo terminal to deliver and pick up consignments.” TRANSFORMING CHALLENGES INTO OPPORTUNITIES | EMIRATE GROUP’S CARGO DIVISIONS
24 | LOGISTICS NEWS ME | APRIL 2021 WWW.CBNME.COM SUPPLY CHAIN LNME T he Vaccine Logistics Alliance (VLA) and the Hope Con- sortium - two UAE-based groups comprising govern- ment and private entities have joined forces to ensure an expected surge of inocula- tions are delivered safely and efficiently this year, to developing countries in the Middle East, Africa, and South-East Asia. Together with more than a dozen glob- al pharma, airlines, ports, and freight forwarding partners, the two groups plan to have the capacity to transport, store, and deliver more than 20 billion COVID-19 vaccine doses across the globe by the end of 2021. Watertight collaboration Undertaking such a mammoth task in de- veloping countries with little existing in- frastructure is a huge challenge, explains Robert Sutton, Head of Logistics Cluster at Abu Dhabi Ports, a founding member of the Hope Consortium, which includes 13 other regional and global partners. Sutton says cooperation and collabora- tion between the consortium’s partners and network of external partners is critical in ensuring vaccines are not just delivered but administered safely: “We go beyond the movement of products; we support the deployment of nurses, doctors, field hospitals, and tents into the countries that need it most,” he said. “Many of our contacts will ask us if we could support, let us say the deployment of 20 million vaccines, from anywhere DELIVERING WHERE IT MATTERS Members of supply chain industry in the region share lessons learned from UAE-led global COVID-19 vaccine rollout in a recent webinar hosted by Messe Frankfurt Middle East
LOGISTICS NEWS ME | APRIL 2021 | 25 DELIVERING WHERE IT MATTERS | LESSONS LEARNED FROM UAE-LED GLOBAL COVID-19 VACCINE ROLLOUT in the world to somewhere in Africa. We can provide them with logistics services from point of production all the way through to distribution and vaccination in the country. “We don’t do that as the Hope Consorti- um alone but through a fantastic network of medical partners that work alongside us to deploy the specialist nurses and healthcare professionals. “The Hope Consortium provides a scale and reach of which we’ve never seen,” added Sutton. “I’ve been in logistics for 25 plus years. I’ve never seen this level of collaboration, this level of willingness and this level of absolute single-minded commitment towards a single goal, which is the eradication of COVID-19 when we return to normality.” Rising to the challenge Ryan Quinlan, CCO of Supply Chain & Logistics at DP World, and Dennis Lister, Vice President of Cargo Commercial Development, at Emirates SkyCargo, were also part of the webinar. DP World and Emirates teamed up with Dubai Airports and International Humanitarian City (IHC), a Dubai-based global centre for humanitarian emergency response, to form the Vaccine Logistics Alliance in January 2021. Quinlan says the international vaccine distribution drive now underway is the largest single logistics challenge globally since the end of the Second World War. However, Dubai’s ideal location at the cross-roads of multiple continents com- bined with an already robust cross-border trade infrastructure meant the Emirate was ideally positioned to distribute the vaccine efficiently and effectively. He adds that DP World felt a respon- sibility to ensure that vaccines are rolled out in emerging markets, with its global network of ports, terminals, and logistics infrastructures in 61 countries on six continents. “One example of this is what we’re doing with UNICEF right now,” reveals Quinlan. “We’re working closely to match UNICEF’s needs with our capabili- ties and working in these 61 countries. We’re now setting up a (cold) storage facility for UNICEF in our Jebel Ali Port in Dubai.” DUBAI’S IDEAL LOCATION AT THE CROSS-ROADS OF MULTIPLE CONTINENTS COMBINED WITH AN ALREADY ROBUST CROSS-BORDER TRADE INFRASTRUCTURE MEANT THE EMIRATE WAS IDEALLY POSITIONED TO DISTRIBUTE THE VACCINE EFFICIENTLY AND EFFECTIVELY. Robert Sutton, Head of Logistics Cluster at Abu Dhabi Ports, and founding member of the Hope Consortium Ryan Quinlan, CCO of Supply Chain & Logistics at DP World >>>
26 | LOGISTICS NEWS ME | APRIL 2021 WWW.CBNME.COM Larger reach Lister notes that Emirates’ network of more than 130 destinations means it has direct access to emerging markets severely affected by the pandemic: “If you’d fly out from Dubai, within maybe four hours, you basically hit more than three billion people,” said Lister. “So, from a geographical perspective, we have a great reach to those markets in the Middle East, Africa, and Indian sub-continent.” Lister says that even prior to the pan- demic, Emirates SkyCargo had already in- vested significantly in infrastructure on the ground as part of its ongoing expansion activities. “If you look at what we’ve done at DWC (Dubai World Central) and the Al Maktoum International Airport, we’ve established that as a vaccine distribution hub,” he claims. “So we’ve invested in the last five years. “We’ve invested over USD200 million in our facilities across the UAE to ensure that we have the right capabilities to manage medicine and pharmaceuticals from this hub internationally. “There are two important commodities in the world that need to continue to fly around the world, and that’s food and medicine,” Lister continues. “We move 600 tonnes of food and 250 tonnes of medicine pharmaceuticals daily around the world. Our responsibility is to ensure we continue to fly because people need food, people need medicine, and we will continue to do that.” A tall order More than 500 million COVID-19 shots have so far been administered in what is the world’s largest vaccination campaign in history. Hutton adds that there have been many supply chain lessons learned that can applied for years to come. “We’ve listened, and we’ve learned to adapt,” he said. “What we have built in an incredibly short period of time, and we are talking about months, not years is a vaccine hub geographically that can handle over 120 million vaccines at any point in time. We have also built the biggest freezer farm in the region that can handle 11 to 15 mil- lion doses of vaccines in temperatures of minus 80 (Celsius). “One of the key learnings I would like to share is that we’ve achieved more with collaboration. Collaboration has been one of the key pillars of our success. We have been transparent, and our partners trust us. And we are incredibly grateful and respectful for that trust. “They’ve invested in us to work with them, to make sure that we collaborate collectively. There will be speed bumps. There will be challenges along the way, but by leveraging all of the different part- ners and maintaining that level of trans- parency, we achieve a lot more together.” The Hope Consortium, with all its dif- ferent partners, currently has the capacity to transport, store and deliver up to six billion vaccine doses, with this growing to potentially 18 billion by the end of 2021. The VLA meanwhile was established to expedite the delivery of two billion doses to emerging markets in 2021, in sup- port of the World Health Organisation’s (WHO) COVAX initiative. SUPPLY CHAIN LNME HYPERMOTION DUBAI, AND MATERIALS HANDLING MIDDLE EAST THE ‘SUPPLY CHAIN LESSONS FROM THE UAE-LED GLOBAL VACCINE ROLLOUT’ WE- BINAR WAS HOSTED BY MESSE FRANK- FURT MIDDLE EAST, THE ORGANISER OF HYPERMOTION DUBAI, AND MATERIALS HANDLING MIDDLE EAST. BOTH THE EVENTS WILL TAKE PLACE FROM 2-4 NOVEMBER 2021 AT THE DUBAI EXHIBI- TION CENTRE. HYPERMOTION DUBAI IS A NEW FORUM ALONGSIDE EXPO 2020 DESIGNED FOR PIONEERS WHO HAVE SUCCESSFULLY HARNESSED DISRUPTIVE DIGITAL TECH- NOLOGIES FOR THE FUTURE MOVEMENT OF GOODS, PEOPLE, AND SERVICES. THE ANNUAL THREE-DAY EVENT WILL TAKE PLACE WITH DP WORLD AS GLOBAL PART- NER AND DUBAI SOUTH AS FUTURE CITY PARTNER. Dennis Lister, Vice President of Cargo Commercial Development, at Emirates SkyCargo
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28 | LOGISTICS NEWS ME | APRIL 2021 WWW.CBNME.COM RETURN LOADS LNME I t’s the 21st century and women are still fighting for equal opportunities, reducing the gender pay gap and battling gender stereotypes. This is even more prevalent in the supply chain and logistics industry, Return- Loads reveals. As one of the largest and most vital sectors in the UK, the transport and logistics workforce has over one mil- lion employees. But in terms of gender split, only 20% of the workforce is female. This is less than half the average across the entire UK workforce, which sits at 47%. Even more damning is the figure for women in land transport, which is only 14%, while only 1% of truck drivers are women. Several sector institutes and associations have created specific campaigns to encour- age women to pursue a career in logistics and transport, as well as supporting busi- nesses in attracting and retaining female employees. The sector also has one of the most prominent ageing workforces, particularly when it comes to drivers. The Road Haul- age Association says the average age of road haulage drivers is 57. What is more, 25% of the workforce is expected to retire in the next 10 years. This, combined with over 80,000 EU workers leaving the UK workforce, will worsen an existing driver shortage. So, if you have owner driver jobs available, you need to look into new ways of attracting drivers. In addition to filling this critical driver shortage, transport and haulage providers must do better in terms of gender equality. So why not kill two birds with one stone? Here, we discuss how you can encourage more women into the sector. Create an inclusive environment School often sets the tone for an individu- al’s future career. Young girls and women are often actively discouraged from pursu- ing careers in traditionally ‘male’ sectors, including science, technology, transport, and logistics. If young women do not feel confident or inspired to study these subjects, they are less likely to enter these careers and industries. These sectors also have an image of a ‘boy’s club’. Not only are women under- represented, but there is a feeling they are unwelcome. Knowing a workforce is 80% men is enough to put aspiring young women off, especially when an ETF report highlights a sexist culture plaguing some of these organisations. Changing a workplace culture does not happen overnight. But creating an inclu- sive environment is critical to reassuring women that your organisation will be a safe place for them. Promoting more women internally and ensuring women are represented at board level will also send a message that your business values female employees as much as male workers. BOOSTING FEMALE REPRESENTATION IN LOGISTICS UK-based haulage exchange marketplace ReturnLoads shares how the transport and logistics sectors can encourage more women into their workforce
LOGISTICS NEWS ME | APRIL 2021 | 29 BOOSTING FEMALE REPRESENTATION IN LOGISTICS Promote your female role models What better way to show aspiring women that your organisation is a good place for them to start or continue a career than to spotlight the women who are already suc- cessful in your business? This is even more powerful if you can promote women in the roles, you are look- ing to increase female representation in. So, if your driver workforce is majority male and you have female drivers who are keen to discuss their experiences, you can highlight their achievements. You can also partner with organisations including Women in Transport and the CILT’s Women in Logistics & Transport project. You can promote your business as gender-inclusive and introduce it to poten- tial new employees. Offer on-the-job training As a result of young girls and women be- ing discouraged from ‘manly’ subjects at school, many do not enter male-dominated industries and therefore may have limited experience. So, to increase the percentage of women in the sector’s labour force, you need to attract candidates that may be new to the jobs or the industry. Applying for a role that you have little experience in can be daunting, so pro- moting on-the-job training is essential to attracting people who are considering a career change. Many people who were unable to work due to COVID-19 restric- tions turned to delivery driving due to an increased demand for these roles. With the pandemic accelerating the adoption of online shopping, this demand is set to remain high. Equally, this shift affects warehousing and logistics. Promoting your roles to peo- ple who may not already be in the sector and training them on the job gives you the opportunity to access a wider candidate pool. Involve women in decision-making While the percentage of women in trans- port, logistics, and haulage organisations is low across the board, there are more women in back-office, logistics, and ware- housing roles compared to drivers. If you have women in senior positions in your business, it is critical to involve them in de- cisions regarding training and recruitment. Your female employees, at any seniority, understand what it is like to be a woman in the sector. As we have seen, some busi- nesses are plagued with outdated, sexist cultures, so they will be able to offer in- sights into what it is really like. If you are not aware of a cultural problem, they can highlight it. Gender inequality in the workplace is a topic that has been discussed more openly in recent years. We know that the reason some businesses have a higher disparity between male and female employees is be- cause women are discouraged from certain roles and sectors from a young age. But even successful women in these roles can be discouraged by cultural issues and a lack of progression in their businesses. The transport and haulage sector has one of the biggest imbalances and, when combined with a driver shortage, is facing a workforce crisis. Encouraging women to pursue a rewarding career in the industry is vital not only in making it an equal play- ing field, but it may be the key to replacing an ageing workforce. APPLYING FOR A ROLE THAT YOU HAVE LITTLE EXPERIENCE IN CAN BE DAUNTING, SO PROMOTING ON-THE-JOB TRAINING IS ESSENTIAL TO ATTRACTING PEOPLE WHO ARE CONSIDERING A CAREER CHANGE.
30 | LOGISTICS NEWS ME | APRIL 2021 WWW.CBNME.COM OP-ED LNME T he COVID-19 crisis has given rise to a new digital era. From hyperconnected consumers to increased automation, the pandemic accelerated digital growth across sectors, enabling transformation in the logistics industry. The rise of eCommerce, coupled with fluctuating transport restrictions, provoked a new logistics landscape to emerge that presented the industry with unforeseen challenges and also, with unique opportu- nities for growth. The boom of eCommerce has played an essential role in industry’s transformation. Interestingly, the regional rise of eCom- merce has followed a unique growth path. Although countries in the Middle East have higher rates of internet penetration than more mature economies, high internet usage was not translating into eCommerce sales. Even for the regional leader, UAE, eCom- merce penetration accounted for only 4.2% of sales in 2017, compared to rates of over 10% in markets like China, the US and UK. The onset of the pandemic, how- ever, pushed consumers online and fast- tracked the growth of eCommerce in the region. Key retailers in Saudi Arabia and UAE have experienced surges in eCom- merce sales, experiencing year-on-year online sales growth upward of 40%. Enhancing logistics has always been a key driver for eCommerce growth. When the pandemic hit, organisations were sud- denly faced with pressure to adopt digital transformation. In order to remain com- petitive, businesses had no choice but to As eCommerce grows and supply chains fluctuate, logistics companies have been navigating an unprecedented landscape by Naveen Joseph, Co-Founder, VP Strategy & New Markets FINDING OPPORTUNITIES IN THE MIDST OF CHAOS
LOGISTICS NEWS ME | APRIL 2021 | 31 FINDING OPPORTUNITIES IN THE MIDST OF CHAOS |NAVEEN JOSEPH, CO-FOUNDER, VP STRATEGY & NEW MARKETS adapt and go online. Inevitably, logistics readiness was absolutely necessary to support the growth of eCommerce in the region. Fortunately, countries in the region have a high standard of infrastructure that ena- bled logistics companies to overcome chal- lenges presented by COVID-19. The UAE has an advantage as a major transshipment hub, with the ports and airports that are able to deliver a high standard of logistics infrastructure. However, despite regional infrastructure, the pandemic’s impact on international and cross-border movement was worri- some. Supply chains around the world were disrupted. The ‘bullwhip’ effect hit the industry, with fluctuating consumer demands that had knock-on effects all the way up the supply chain. As consumer demand increased, logistics capacity de- creased due to the travel and transport restrictions. The most common challenge faced by logistics companies was increased cost and availability of delivery associates. But there is a common saying which is apt for this situation, “when the going gets tough, the tough get going”. Businesses had to adjust, improvise and innovate quickly to support growth and scale. Amidst a global pandemic, businesses genuinely wanted to show empathy and enable the quickest, most convenient solu- tions for customers. The goal for logistics businesses has been to adapt to the sudden change and manage unexpected spikes in volumes, while constantly improving deliv- ery success rates. The first step in adapting has been a quick shift to work with local authorities and comply with new protocols. The COV- ID-19 crisis has also encouraged logistics businesses to adopt new technological advancements. Consequently, we’ve seen trends like automation, analytics and real- time visibility on the rise in the industry. The logistics sector has embraced con- tactless operations to mitigate health risks. This includes using fixed presentation scanners in facilities to replace handheld scanners and contactless delivery using autonomous robots. Fulfillment facilities have also used robotics to tackle labour shortages and maintain social distancing. There’s no doubt that the COVID-19 crisis has highlighted the essential nature of logistics operations, which have been on the front line of the pandemic. This in- cludes delivery associates who are no few- er frontline heroes, relentlessly adopting necessary precautions to meet increased demand for deliveries. In my experience working with iMile, the pandemic had a transformative effect on businesses working in the logistics indus- try. Many grew stronger – we have had to, in order to support the ecosystem, which was scaling at an exponential rate. With the onset of the pandemic, the logistics industry has been given the opportunity to grow and shape consumer’s path to pur- chase in way that can create value for the whole ecosystem. THE LOGISTICS SECTOR HAS EMBRACED CONTACTLESS OPERATIONS TO MITIGATE HEALTH RISKS. THIS INCLUDES USING FIXED PRESENTATION SCANNERS IN FACILITIES TO REPLACE HANDHELD SCANNERS AND CONTACTLESS DELIVERY USING AUTONOMOUS ROBOTS. Naveen Joseph, Co-Founder, VP Strategy & New Markets
32 | LOGISTICS NEWS ME | APRIL 2021 WWW.CBNME.COM E-MOBILITY LNME T here has been active push for sus- tainable modes of transportation in the past few decades across the globe. Car and truck manufactur- ers are now looking at releasing only electric models, some even have grand ambitious to roll out only electric models in the next decade, such as Volvo Cars. Earlier last month, the Swedish manufac- turer announced that it will only sell elec- tric vehicles by 2030 and will phase out all car models with internal combustion engines in the next nine years, including hybrids. Renault Trucks has also announced simi- lar goals in terms of electric mobility. It announced that by 2025, electric vehicles will represent 10% of its total vehicle sales and 35% by 2030. The goal is to provide 100% of its trucks without fossil fuels by 2040. The French manufacturer is making huge investments to achieve this goal. In March 2020, it started series production of its second generation of electric vehicles at the Blainville-sur-Orne plant and now boasts the widest electric range on the market. To help its customers accelerate their energy transition, Renault Trucks has set up a new sales organisation dedicated to electric mobility. Japanese counterparts UD Trucks also aims to deliver a variety of solutions for smart logistics, including fully electric and autonomous trucks towards 2030. Government initiatives Locally, the UAE is making great strides in creating sustainable infrastructure and promoting eMobility. Its UAE Vision 2021 National Agenda focuses on improving the quality of air, preserving water resources, increasing the contribution of clean ener- gy, and implementing green growth plans. Dubai’s Road and Transport Authority (RTA) was the first entity in the region to deploy hybrid/electric vehicles in taxi fleet for a trial run from 2008 to 2011. Results of the trial proved the economic and eco- logical feasibility of the project, with 30% fuel saving and 30% reduction in carbon emissions. GAINING NEW GROUNDS IN GREEN TRANSPORTATION The momentum to promote green mobility is gaining steam, manufacturers, governing bodies, and transport authorities and companies are exploring this field with latest technologies and innovative solutions
LOGISTICS NEWS ME | APRIL 2021 | 33 GAINING NEW GROUNDS IN GREEN TRANSPORTATION In 2019, RTA endorsed a plan to trans- form 50% of Dubai taxi fleet into hybrid vehicles by 2021. Accordingly, the number of hybrid taxis increased from 791 vehicles in 2016 to 4,750 vehicles by the end of this year. In the same year, RTA also has endorsed an initiative to transform 90% of limou- sines operating in Dubai into environmen- tal-friendly vehicles (hybrid/electric) by 2026. The initiative is the first of its kind worldwide in the semi-total conversion of the limo fleet into green vehicles. HE Mattar Al Tayer, Director-General and Chairman of the Board of Executive Directors of RTA Board, stated that the in- itiative was implemented under the direc- tives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to save power consumption in the UAE. “It also fosters a safe, clean and sustain- able environment that will leverage the profile of Dubai. In addition, it contributes to the Dubai Government initiative to introduce green vehicles for a cleaner en- vironment. “The step is part of a master plan to curb carbon emissions of taxis and limos by 2% as required by the Dubai Supreme Council of Energy and the Green Economy drive. It also comes in the aftermath of fuel deregu- lation policy and the low cost of electric/ hybrid vehicles life span compared with fuel-powered vehicles.” Green bus fleet Capital Abu Dhabi is taking a proactive stance on sustainable transport and infra- structure. In February this year, Al Fahim Group in collaboration with Emirates Global Motor Electric and Yinlong Ener- gy, announced the launch of environment- friendly Lithium Titanate Oxide (LTO) electric buses. LTO electric buses can be charged in under 20 minutes as compared to a few hours for other lithium-ion electric buses. Launched first in Abu Dhabi, the electric buses are powered by the fastest charging lithium battery in the world – the LTO battery which can be charged in less than 20 minutes. The green environmentally friendly buses are set to provide significant energy sav- ings and support in reducing the carbon footprint of the UAE. For example, replacing just one diesel bus with an electric bus is the equivalent to reducing harmful emissions from 27 pas- senger cars driven for one year, and 12,175 gallons of diesel over a ten-year period. Because the buses charge so quickly, they are ideal for mass transportation both in the public and private sectors. Creating EV infrastructure Abu Dhabi is also ramping up infrastruc- ture to support the roll out of electric vehicles. ION, a joint venture between Bee’ah and Crescent Enterprises, has been appointed to install the region’s first ultra- fast eVehicle charging stations. These stations offer a total capacity of up to 350KW and will be installed on Yas Is- land. Capable of charging electric vehicles (EV) through a connection to a user inter- face unit, the stations can supply combined charging system (CCS) EVs. Through its compatibility with all manufacturers, the stations also solve a common issue with EV charging infrastructure by catering to all types of eVehicles including buses. Another major benefit of the ION sta- tions is its offer of the fastest charging times in the UAE, fully charging vehicles in less than 15 minutes on average and reduc- ing user waiting time drastically. They are 25 times faster than a traditional home charger which only supplies up to 7KW. Featuring less cable work, the sta- tions are also cost-effective and reduce carbon footprint. >>>
34 | LOGISTICS NEWS ME | APRIL 2021 WWW.CBNME.COM LNME E-MOBILITY ION is fast-tracking the development of electric transportation in the UAE and has achieved significant milestones within a few short years since its launch. Within Abu Dhabi, ION manages on-demand electric transportation in Masdar City, matching residents to a fleet of electric vehicles and autonomous electric shuttles through a mobile app. The firm also recently concluded a suc- cessful pilot trial of the NAVYA shuttles in the University City of Sharjah as well as launching Sharjah’s first network of public electric vehicle charging stations. In part- nership with NAVYA, ION is promoting the use of shared autonomous transport to the MENA region. Introducing autonomous vehicles Abu Dhabi is not stopping at just promot- ing green vehicles and transport infrastruc- ture, it has now set its sights on driverless vehicles. The Department of Municipalities and Transport (DMT) recently announced that it will cooperate in the trial operations of autonomous vehicles for transporting passengers in the emirate along with Bay- anat, a G42 company, in the geospatial domain since 2008. Bayanat will support DMT’s strategy for smart transport and developing innovative mobility solutions to reinforce the efforts of the entity, through DMT’s Integrated Transport Centre (ITC). ITC is responsible for establishing the necessary infrastructure for the use of self- driving vehicles within an integrated and sustainable transport system, to improve the quality of services provided to resi- dents and visitors. The agreement between both parties stipulates the establishment of the Autono- mous Vehicles Programme in coordination with the DMT and in cooperation between ITC and Bayanat, for the launch of the trial operations of self-driving vehicles in two phases. The first phase includes three vehicles operating in the main area of Yas Island in the pick-up and drop-off points at hotels, restaurants, shopping malls and offices, while the second phase includes more than 10 vehicles in multiple locations across Abu Dhabi. The service will be free of cost in both phases and will be provided from 8:00am to 8:00pm, with the presence of a safety officer in the driving seat, to facilitate the operation and intervene in the event of any sudden occurrence to ensure the highest security and safety standards. Bayanat will provide comprehensive sup- port to the programme, including vehicle safety testing, central security, and an operation management platform, as well as overseeing the autonomous vehicle op- erations to comply with traffic laws and its executive regulations. DMT will work in coordination and cooperation with relevant stakeholders, to lay down the legislative, regulatory, and supervisory infrastructure necessary for the use of autonomous vehicles. This includes preparing the necessary regulations and manuals for self-driving vehicles in Abu Dhabi, especially for level 3 and 4 (levels for automating self-driving vehicles) and adopting electronic security standards for smart transport. THE DEPARTMENT OF MUNICIPALITIES AND TRANSPORT (DMT) RECENTLY ANNOUNCED THAT IT WILL COOPERATE IN THE TRIAL OPERATIONS OF AUTONOMOUS VEHICLES FOR TRANSPORTING PASSENGERS IN THE EMIRATE ALONG WITH BAYANAT, A G42 COMPANY, IN THE GEOSPATIAL DOMAIN SINCE 2008.
36 | LOGISTICS NEWS ME | APRIL 2021 WWW.CBNME.COM L eading Swiss drone technology producer in the indoor inspection industry Flybotix recently announced a new partnership with SIGMA Enterprises LLC. Sigma, a distributor and service provider for a wide range of scientific and engineering technologies in region, will operate as the appointed distributor and service provider for Flybotix’ ASIO solution and will support customers looking for professional inspection drones in the UAE. For the first time state-of-the-art inspection drone technology is made available to industrial asset owners in the UAE Inspection drone technology debuts in the UAE INNOVATION LNME
LOGISTICS NEWS ME | APRIL 2021 | 37 INSPECTION DRONE TECHNOLOGY DEBUTS IN THE UAE ASIO is said to challenge the industry standard for flight time thanks to its innovative propulsion system that combines the simplicity of multi-rotors with the aerodynamic efficiency of helicopters. The result is an energy-efficient, collision tolerant drone which flies for twice as long as conventional models and significantly less noise. It allows customers to inspect hazardous confined, hard-to- reach spaces safely and in a short time. The drone was developed for industrial inspections, especially for oil and gas plants, infrastructure, and the energy sector. “We are excited to bring the ASIO solution to the UAE market and introduce it to our customers,” says Suneesh KS – SIGMA Enterprises Division Sales Manager. “This technology offers a great advantage by simplifying the inspection process using a compact drone, saving time, and reducing the risk of human error. We are also confident that ASIO’s superior flight time will help to streamline and reduce the cost of the entire inspection project.” Samir Bouabdallah, Co-Founder and CEO of Flybotix said: “The UAE and the GCC countries are key regions for us. Their vast infrastructure and construction industries include various industrial assets that require comprehensive and potentially hazardous inspections. We’re thrilled to be able to offer our novel technology in the UAE alongside training and product maintenance through our new partner SIGMA Enterprises.” Flybotix is Bouabdallah’s second venture in the drone industry. The first one he designed - Skybotix - was acquired by GoPro. ASIO is a Swiss engineering product manufactured in Switzerland and combines the latest technological innovations from maxon and Solvay. The drone obtained the name from the Asio Owls’ family, renowned for its excellent vision and large wingspan. Very much like the Asio, the drone is recognised by its True 4K + IR camera, 10K lumen lighting, and its long propellers. “THIS TECHNOLOGY OFFERS A GREAT ADVANTAGE BY SIMPLIFYING THE INSPECTION PROCESS USING A COMPACT DRONE, SAVING TIME, AND REDUCING THE RISK OF HUMAN ERROR. WE ARE ALSO CONFIDENT THAT ASIO’S SUPERIOR FLIGHT TIME WILL HELP TO STREAMLINE AND REDUCE THE COST OF THE ENTIRE INSPECTION PROJECT.”
38 | LOGISTICS NEWS ME | APRIL 2021 WWW.CBNME.COM FREE ZONES REPORT LNME A ccording to a report by the Free Zones World Economic Barom- eter, free zones across the world are confident about their growth performance in the coming months as they prepare to become ‘future ready’ in a post-pandemic world. About 40% of free zone organisations expressed positive outlook on their per- formance during the fourth quarter of 2020 and are looking at the first quarter of 2021 to be following the same trend, the World Free Zones Organization (World FZO) said in its report. The report further noted that invest- ment, employment, and profitability of free zones showed improvement during Q4 compared to the previous quarter of the same year. During the third quarter of last year, 49% of free zones surveyed by World FZO reported ‘normal economic condi- tions,’ which then moved up to 53% in the latest survey conducted in December 2020. Securing business continuity Dr. Mohammed Al Zarooni, Chairman of World FZO, remarked: “Amidst the pandemic, free zones have been doing their best to ensure business continuity and resume normal activities. As with challenges, we also see the opportuni- ties as economies work towards greater regional coordination and integration with the support of policy reforms and use of latest technologies.” “Alongside these developments, free zones can be the most ‘future ready’ if they focus on recovering in the most sustainable way based on greater trans- parency in their environment, social and governance commitment,” Dr. Al Zarooni added. In line with its commitment to sup- port the fast recovery of free zones, World FZO recently held a webinar themed ‘The Way Forward – Towards a Brighter Future,’. The webinar was addressed by Dr. Samir Hamrouni, CEO of World FZO, along with key speak- ers, Dr. Mohan Guruswamy, the Chief Knowledge Officer at World FZO and Saskia Meuchelbock, Economist at Kiel Institute for the World Economy. The impact of COVID-19 on free zones and a new development model designed to enhance the future readiness of free zones were discussed during the webinar. Dr. Hamrouni explained, “We have created a range of certification programmes and a range of unique resources that can help free zones flour- ish in different situations, considering a futuristic approach and long-term perspective.” Digitally inclination The speakers suggested that going digital and implementing a ‘lean and mean’ organisation can help prepare free zones to accelerate recovery amidst the economic impact of the COVID-19 pandemic. They introduced during the webinar the ‘Free Zone of the Future’ - the Free Zone 4.0 Programme, a unique initiative which will help free zones to become ‘future ready’. Dr. Guruswamy underscored that COVID-19 has paved the way for a new business environment to emerge, which requires free zones to undertake a strategic reorientation of their opera- tions and processes. “Our New World Model, which we also call the ‘New Normal,’ provides a path for businesses to emerge stronger from the crisis. The revamp necessitates a shift in mindset, with a focus on collaboration rather than competition, greater inclusion, continuous innovation, and reflection of ESG principles. With a greater emphasis on sustainability while operating, the new strategies envision a transformation in the production network and a new industrial revolution driven by digitali- sation,” he noted. Meuchelbock, expressing her opti- mism, said: “Despite a drop in econom- ic sentiment as a result of COVID-19, the free zones took proactive measures to mitigate the effects of the pandemic by focusing on digitalisation, commu- nication on awareness, and increasing online presence while revising value proposition and long-term strategies.” World FZO further recommended in its report that digitalisation, innovation, a review of business performance and management systems, exploring new methods of financing, and introducing an enterprise risk management frame- work can boost the recovery process of free zones. GLOBAL FREE ZONES AIM TO BECOME ‘FUTURE READY’
LOGISTICS NEWS ME | APRIL 2021 | 39 RENAULT TRUCKS T X-PORT NEW TIMES, NEW OPPORTUNITIES RENAULT TRUCKS T X-PORT 4X2 EURO 3 CERTIFIED B Y R E N A U L T T R U C K S U S E D T R U C K S WWW.USED-RENAULT-TRUCKS.AE Benefit from a truck transformed in our factory with the manufacturer high quality standards. For a long-term performance get more than a Used Trucks, contact your local Renault Trucks dealer to get your Renault Trucks T X-Port with 24 months warranty and 24 months service contract to guarantee total peace of mind. WITH 24 MONTHS INTERNATIONAL WARRANTY + 24 MONTHS SERVICE CONTRACT MORE THAN A USED TRUCK
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