Logistics News, August 2023
Page 1
CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE
AUGUST 2023
From Port of Neom,
Jebel Ali Port to Sohar
Port, and more
TOP PORTS IN THE
MIDDLE EAST
MARINE SPECIAL
3 P L
KSA’S
3PL LUMINARY
A I R C A R G O
TURKISH
CARGO
B U N K E R I N G
INTERNATIONAL
MARINE & ENERGY
Page 2
Page 3
LOGISTICS NEWS ME | AUGUST 2023 | 3
IN THIS ISSUE
HOW ARE PORTS
REDEFINING MIDDLE
EASTERN ECONOMIC
GROWTH?
14 OPINION
CARPOOL
The role of car-sharing to achieving
sustainable mobility in the Middle East
16 CASE STUDY
A SYNERGISTIC PARTNERSHIP
Ferns N Petals Partners with Yango
Delivery to Touch Hearts Across the
UAE
18 EXPERT INSIGHT
EV CHARGING INFRASTRUCTURE IS
A GROWING MARKET
Reliable, Widely Available EV Charging
Infrastructure Is Critical to Support the
Booming EV Market, Reports IDTechEx
20 3PL
KSA’S 3PL LUMINARY
Everything you need to know about
UWC and its spurring kingdom-wide
economic development
24 CARGO
THE TURKISH AIR ENABLER
Turhan Özen, Chief Cargo Officer at
Turkish Airlines, outlines the vital
strategic advancements for the ever-
efficient Turkish Cargo
47
DOCKS
THE OFFSHORE SERVICES
PROVIDER
Vibha Mehta and Captain Rado
Antolovic, CEO of Drydocks World,
discuss marine and offshore services
offered on the yard
50 SOLUTIONS
THE NICHE SOLUTIONS
PROVIDERS
Giorgio Barabino, Regional Director
- Middle East at Shell Marine
Mediterranean, on how they are vital
to the marine industry
52 BUNKERING
THE FUEL SUPPLIER
Vibha Mehta speaks to Ali Fathi,
Managing Partner at International
Marine & Energy, to understand more
about the company
THE MIDDLE EAST IS
A NAUTICAL TRADING
AREA, AND ITS MULTIPLE
PORTS ARE ESSENTIAL
FOR FACILITATING
COMMERCE AND
ECONOMIC ACTIVITY.
14
47
28
Page 4
Experience
FAIRMONT
MOMENTS
Page 5
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6 | LOGISTICS NEWS ME | AUGUST 2023
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Page 7
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Page 8
8 | LOGISTICS NEWS ME | AUGUST 2023
WWW.CBNME.COM
EDITOR’S NOTE
LNME
T
he moment I touched down in Bombay, the chilly,
damp air—which we refer to as having a 'smell of
soil,' or Mitti di Khushboo—opened every cell in my
body. Bombay is beating at another beat all at once
since the monsoon season is at its height in July and
August. I felt warmly pulled away as I was driving to my
house while sitting in the car and seeing the hustle and
bustle of traffic, people trying to get somewhere, and the
little water drops on the windscreen. All I cared about at
that time was getting home and enjoying some delectable
home-cooked food with the folks who bring me the most
comfort. This is partly because after visiting Bombay for,
well, I don't know how long.
I felt inner calm and delight while watching some local
television, listening to home hustling, and keeping up with
some of my fave people. Numerous dinners and drinks
spent with my friends and family have left some core
memories behind that I know I will likely recall at some
point in the future. The most magical retrieval was sitting
on Marine Drive at 6 a.m. with a hot cup of coffee and
watching the Arabian Sea weave its magic. When I was
immersed in my own world, the raucous sound of the
waves crashing on the cliffs was music to my ears.
The allure that the city of Bombay has over you is well-
known to those who have visited. The city of dreams will
load you up with a box full of memories that you will
never forget, from the horrendous traffic and the relentless
rush to get stuff done to enjoying that sizzling Vada Pav.
Only I, deep down, know how many memories have
come to me as I write this letter, making me smile. I am
back in the game, full of energy and enthusiasm, and I
am eager to start the second half of this year off strong.
Starting with the Sustainability Awards and Forum on
August 31 and the Logistics and Transport Awards 2023
in September 2022, we have some of the most intriguing
events planned. For additional details, check back soon; in
the meanwhile, enjoy reading!
Rejuvenated
Vibha Mehta
Editor-in-Chief
vibha@bncpublishing.net
Vibha Mehta
vibhamehta01
@vibhamehta01
Page 9
Origin & Destination
Services in
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Countries
Surface
Transportation in
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Continents
Aircraft
Parts
Movement
Engine
Movements
AOG
Services
Time
Critical
Movements
Airside
Deliveries
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Operations
Service
Cargo
On Board
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Expertise in the
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Page 10
10 | LOGISTICS NEWS ME | AUGUST 2023
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REGIONAL NEWS
LNME
I
ntelligent logistics platform
Raft announced today
the successful completion
of its Series B funding
round, raising $30 million
in investment. The funding
round is led by global VC
investor Eight Roads with
participation from existing
investors Bessemer Venture
Partners, Episode 1, and
Dynamo Ventures, as well as
Moguntia Capital.
Founded in 2017, Raft—
formerly known as Vector.
ai—helps key players in the
logistics industry apply AI
to their daily tasks and cus-
tomer interactions. The fresh
capital infusion will be used
to increase development and
deployment of Raft’s core
automation products, improve
data collaboration across
the ecosystem—including
mission-critical emissions and
visibility data—and overall
deepen Raft’s market reach.
“We founded Raft as an
AI-first company because
we saw an opportunity to
empower freight forwarders
and customs brokers with
technology, and take pressure
off their operational teams
so that they could focus on
their customers instead of
their keyboards,” said James
Coombes, CEO and Co-
Founder.
“We’ve always been clear
about focusing on specific
parts of the shipment lifecycle
where automation has the
highest ROI. We recognized
early on the pain points
around accounts payable
reconciliation and customs
entry preparation, and we’ve
since grown the product to
help automate areas such
as warehousing, booking
confirmations, and more,” he
continued.
“We quickly understood
that our customers don’t want
separate solutions for each
of these areas, they want one
AI-platform that offers best-
in-class automation across the
length and breadth of their
business. That’s Raft,” said
Coombes.
At a time when freight for-
warders and customs brokers
are being squeezed from
both sides—lower revenue as
rates and volumes drop post-
covid and rising costs from
high staff turnover and wage
inflation—digital tools that
help win and retain customers
combined with automation
tools that make operations
budgets stretch further have
never been so important.
Coombes said, “We see AI
as an enabling force for a new
way of working in logistics.
AI can help make sense out
of complex and sometimes
chaotic human processes, al-
lowing them to be completely
digital for the first time as well
as more efficient and collabo-
rative. Our services are more
relevant than ever before and
we’re excited to build on the
foundation of almost 6 years
of data and expertise in de-
ploying cutting-edge AI to the
logistics industry.”
Raft’s platform is driving
a step-change in automa-
tion but it has also created a
natural opportunity for Raft
to bring its data and insights
to the customer-facing side
too, an intention clearly dem-
onstrated with its release of a
digital shipment portal, which
helps freight forwarders and
customs brokers to bridge the
gap with their end-customers.
“One thing we noticed is
that our customers struggled
to take the fragmented data
that sits across their business
and serve it digitally to their
shipper end-customers. We
have clean AI-standardized
data, broad exposure across
the shipment lifecycle, and
existing integrations across
the ecosystem, and so we felt
like we were well placed to
offer that,” said Coombes.
Raft’s recently released
shipment portal offers its
customers the ability to share
both internal data as well as
third-party data with their
end-customers, offering tools
such as multi-source container
visibility, emissions reporting,
and quote-to-book, all in one
digital portal that works seam-
lessly with their TMS.
“We are excited to partner
with Raft on their path to help
the global logistics industry
scale through automation and
data-driven decision making,”
said Michael Treskow, Partner
at Eight Roads. “The team
has leveraged a combination
of industry expertise and cut-
ting-edge AI to build a prod-
uct that delivers immediate
value to its customers. There
are many more concrete pain
points Raft can solve for the
industry, and we look forward
to the team executing on their
vision.”
Raft’s customers include 40%
of the A&A’s Top 25 Global
Freight Forwarders List, as
well as global customers like
EMO Trans, OIA Global, The
Scarbrough Group, NNR
Global Logistics, and Navia
Freight.
Andy Richardson, Global
CIO at EMO Trans, a leading
global logistics provider, said,
“Raft was the right partner
that matched our global vi-
sion and ambition. Their best-
in-class automation platform
shone in comparison to all
the other options we looked
at. Their clear AI leadership,
breadth of product, and deep
TMS integrations has laid a
clear path to automate the ex-
ecution of our entire shipment
lifecycle—making the lives of
our operators easier, and our
customer service better.”
Since launching in 2017, the
Raft team has grown to more
than 95 employees located in
offices in the UK, India, and
the US and is planning ad-
ditional hires across product,
engineering, and commercial
functions over the next year.
RAFT RAISES $30M IN SERIES B
FUNDING TO TRANSFORM GLOBAL
SUPPLY CHAIN EXECUTION WITH AI
Page 11
LOGISTICS NEWS ME | AUGUST 2023 | 11
REGIONAL NEWS
A
IT Worldwide Logistics proudly announces its
expansion to the Middle East with a new office
in Dubai, the most populous city in the United
Arab Emirates. The new location is an investment
to fulfil key customers’ evolving shipping needs
while enhancing the region’s global freight forwarder’s supply
chain solutions.
Ideally situated as a central consolidation and distribution
point for the Eastern Hemisphere, AIT-Dubai serves shippers
whose supply chains utilize the increasingly popular multi-
modal location to transload freight from air to ocean. The
UAE is a top-three trading partner with India, and much of
the cargo passing through is bound for gateway cities such
as Chicago, Frankfurt, and Hong Kong.
According to AIT’s Vice President of India and Middle East,
Vikram Paul, the new Dubai office consolidates regional op-
erations within the company’s global transportation manage-
ment system.
“As a result, we are increasing overall transparency for
our customers with business in and/or passing through the
Middle East,” said Paul. “Dubai’s location is unrivalled as a
crossroads for global trade, and we are delighted to expand
AIT’s footprint with this robust addition to the worldwide
network.”
In addition to managing a wide variety of general air and
ocean freight, AIT-Dubai provides special services expertise
for technology companies shipping sensitive cargo, such as
data racks and other high-tech components. The new office
also serves the UAE’s booming automotive sector, including
shipments of electric vehicle components.
As AIT’s presence in the Middle East continues to expand,
the company will leverage its global expertise in the govern-
ment and aerospace fields by ramping up special services for
those industries in Dubai. Likewise, AIT’s Life Sciences Divi-
sion professionals plan to expand global operations in part-
nership with the Dubai office by staging critical temperature-
controlled shipments at cold storage facilities in the Middle
East for delivery to African destinations.
The Dubai location is the newest member of AIT’s global
network featuring more than 110 offices worldwide.
AIT WORLDWIDE LOGISTICS EXPANDS TO THE MIDDLE EAST WITH NEW
OFFICE IN DUBAI
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REGIONAL NEWS
LNME
H
erald Holdings (FZE), a global
conglomerate of logistics
and shipping companies,
has signed an investment
agreement with the Sharjah
Airport International Free Zone (SAIF
Zone) to expand its operations and
strengthen its regional presence.
The deal, inked by HE Saud Salim Al
Mazrouei, Director of SAIF Zone, and Mr
Krishna Kaladharan, Managing Director
of Herald Holdings, marks a significant
milestone in the company’s growth
strategy.
Under the new deal, Herald Holdings
has secured a lease of land spanning
173,000 square feet in the SAIF Zone.
This strategic move will enable the
company to construct a state-of-the-art
logistics facility tailored to cater to mul-
tiple sectors, including hospitality, con-
sumer goods, construction, oil and gas,
and heavy projects. The facility will offer
comprehensive warehousing services
and seamless air, land, and sea cargo
transportation.
Herald Holdings’ new expansion plan
will be further reinforced by the free
zone’s advantageous location and access
to high-growth markets in the Middle
East, Africa, and Asia. By leveraging
SAIFZ’s cutting-edge facilities and busi-
ness solutions, the company aims to
strengthen its position as a major trade,
industry, and logistics hub.
With the latest investment, Herald
Holdings’ total acquisition in the free
zone will increase to AED 30 million. The
company’s operational footprint in SAIF
Zone is set to expand to a sprawling
227,000 square feet, considering the ad-
ditional 54,000 square-foot warehouse it
rented in 2022.
With an impressive legacy spanning
over 28 years and a distinguished po-
sition in the sector, Herald Holdings
stands as a strategic partner to a promi-
nent Logistics Group and has showcased
remarkable proficiency and leadership in
logistics, emerging as the fastest-grow-
ing Non-Vessel Owning Common Carrier
(NVOCC), Global Freight Forwarding,
Project Logistics, and E-commerce ser-
vices provider across the Middle East
and Indian Subcontinent.
THE GLOBAL HUB FOR TRADE
HE Saud Salim Al Mazrouei, Director of
SAIF Zone, warmly welcomed Herald
Holdings’ new expansion in the free
zone. He said, “We are deeply pleased
to witness Herald Holdings announcing
its latest expansion here in SAIF Zone.
This move only serves to further estab-
lish our position as a potent driver for
trade growth, both on a regional and
global scale.”
“It is a testament to our exceptional
ability to attract major international busi-
nesses in the logistics and e-commerce
sectors and provide diverse support to
foster their business growth. Particularly,
given the strategic location of Sharjah,
we have become a significant global hub
for trade and logistics and an essential
destination for companies, thanks to
our developed ports, airports, and infra-
structure supporting supply chains.” Al
Mazrouei noted.
He said: “At SAIF Zone, we have
committed ourselves to boosting the
resilience of the transport and logistics
sector through innovative solutions and
amenities that support investors’ aspira-
tions and help them achieve the growth
and success they look forward to in com-
petitive markets.”
“Our integrated systems cater to di-
verse logistic services and associated
sectors, including both light and heavy
industries and assembly operations. It
is bolstered by innovative infrastructure
and communication systems to ease the
movement of goods. Moreover, our stra-
tegic location near Sharjah International
Airport offers an attractive incentive for
companies operating in this sector to
penetrate competitive markets in the
MENA region,” Al Mazrouei added.
ADVANCED LOGISTICS FACILITIES
For his part, Krishna, Managing Director
of Herald Holdings, expressed confi-
dence that the recent expansion plan
would further enhance the company’s
presence and competitiveness in the
GCC, MENA region, Asia, and Europe.
“SAIF Zone’s strategic location, paired
with its advanced logistics facilities,
ideal business solutions, and capabilities
tailored to accommodate the needs of
various types of companies, collectively
aligns with our goal. We aim to become
a leading international logistics and ex-
press freight company. From SAIF Zone,
we are primed to offer direct and effec-
tive logistics solutions to our customers
scattered across various countries.”
Krishna added.
HERALD HOLDINGS EXPANDS BUSINESS WITH A
173,000 SQ. FT. LAND LEASE IN SHARJAH AIRPORT
INTERNATIONAL FREEZONE
Page 13
LOGISTICS NEWS ME | AUGUST 2023 | 13
T
he Dubai
Maritime
Authority
(DMA) at the
Ports, Customs
and Free
Zone Corporation, the
regulator of the shipping
and maritime sector in
Dubai, today announced
the introduction of
ADMINISTRATIVE
DECISION NO. 2 OF 2023
ON THE TRANSPARENCY
OF LOCAL SEA
CONTAINER CHARGES IN
DUBAI DIRECTIVE, which
is designed to strengthen
transparency, accountability,
and competitiveness across
Dubai’s maritime sector.
The Administrative Deci-
sion, which follows extensive
industry-wide consultation
as part of the DMA’s formal
stakeholder partnership pro-
gramme, comes into force
from 1 August 2023 and is
also driven by a thorough
analysis of the industry and
local sea container charges
conducted by the DMA,
which will bring more trans-
parency to the maritime sec-
tor and ease of doing busi-
ness in Dubai.
The new Administrative De-
cision, introduced under the
enhanced mandate, outlines
five essential changes to help
ensure the adoption of global
best practices across Dubai’s
maritime ecosystem.
Firstly, ADMINISTRATIVE
DECISION NO. 2 OF 2023
ON THE TRANSPARENCY
OF LOCAL SEA CONTAINER
CHARGES IN DUBAI DIREC-
TIVE brings the freezing of
sea container charges intro-
duced by DIRECTIVE NO.
1 OF 2023 ON TRANSPAR-
ENCY OF LOCAL SEA CON-
TAINER CHARGES IN DUBAI
to an end.
Secondly, the new Adminis-
trative Decision requires pro-
viders of local sea container
services to openly publish
details of their previously
filed charges with DMA on
their corporate website within
30 days, thereby enhancing
transparency for their cus-
tomers.
Thirdly, it allows providers
of local sea container services
to file for amendment of their
local charges through the
Dubai Trade single window
as per the defined process by
the Authority.
Fourthly, having undertaken
an extensive analysis of the
charges submitted by service
providers, the Dubai Mari-
time Authority has acted to
introduce a new mechanism
where service providers
will charge directly for their
services, and the local Port
Operator will issue invoices
separately for their provided
services such as its Terminal
Handling Charges (THC) and
Truck Loading and Unloading
Charges (TLUC) directly to
the relevant user, as well as
collect payment directly via
the Dubai Trade Platform.
Finally, all Delivery Or-
ders will be issued digitally
through the Dubai Trade Dig-
ital Delivery order platform to
strengthen Dubai’s position
as a digital city, noting that
future details for implementa-
tion will be published in due
course.
The publication of AD-
MINISTRATIVE DECISION
NO. 2 OF 2023 ON THE
TRANSPARENCY OF LOCAL
SEA CONTAINER CHARGES
IN DUBAI DIRECTIVE will
increase Dubai’s competi-
tiveness as a leading global
trade hub.
DUBAI MARITIME AUTHORITY MAKES A NEW ADMINISTRATIVE
DECISION TO IMPROVE CONSUMER PROTECTION
REGIONAL NEWS
Page 14
14 | LOGISTICS NEWS ME | AUGUST 2023
WWW.CBNME.COM
OPINION
LNME
C
limate change affects every sector
of society, and transport is no
exception. According to a recent
World Bank report, greenhouse
gas emissions from the transport
sector currently make up 20%
of the world’s total emissions.
These emissions could increase by as
much as 60% over the next three decades.
The MENA region has not taken this
challenge lightly and has started to
embrace cleantech. Local governments
are implementing initiatives to address
climate change, such as the UAE’s Year
of Sustainability, and have also recently
increased the goal of reducing carbon
emissions by 2030 from 31% to 40%,
showing the country’s urgency to tackle
the issue.
An exciting transformation is underway
in the transportation industry, and at the
heart of this change is the global focus
on sustainability. The transportation
sector is a significant source of carbon
emissions and environmental imbalances.
As the MENA region prepares to host the
COP28 climate conference in the UAE,
it becomes crucial to rethink, redefine
and fundamentally reshape our current
mobility patterns.
The Shift Towards Car-Sharing
At the core of sustainable modes of
transport is car-sharing, which has
emerged as a popular smart alternative to
traditional car rentals and ownership. The
social shift highlights the unsustainability
of conventional transportation and the
need for more sustainable modes of
commuting as consumer preferences
change to prioritise convenience and
sustainability. Industry forecasts predict
that the car-sharing sector in the UAE
alone will generate $82.52 million in
revenue by 2023. This development has
the potential to significantly impact the
future of transportation in the region
by reducing traffic congestion, carbon
emissions, and dependence on personal
vehicles.
Car sharing has existed since the
‘80s, initially appearing in Europe long
before the sharing economy and digital
age. Globally, the car-sharing market is
projected to grow 34.8% year-over-year
by 2024, reaching $16.5 billion. Four out
of every ten car journeys will eventually
be by car share, with the Oliver Wyman
Forum reporting surging growth in the
sustainable mobility industry will see an
increase to $660 billion in 2030. Today,
the car-sharing industry in Dubai has the
highest penetration rate in the Middle
East region, representing 0.05% of the
CARPOOL
The role of car-sharing to achieving sustainable
mobility in the Middle East
ORIGINALLY WRITTEN BY NICHOLAS WATSON, CEO & CO-FOUNDER OF UDRIVE
EDITED BY VIBHA MEHTA
Page 15
CARPOOL | ACHIEVING SUSTAINABLE MOBILITY
passenger car market, and is projected to
quadruple within the next two years.
The Rise Of Smart Technologies
In modern business, disruption of
traditional practices is commonplace. The
digital revolution has led to widespread
reliance on smartphones and applications
for day-to-day functions such as
mobility. Users can find, and book shared
transport options with the click of a
button, making transportation more
accessible to everyone. For car-sharing
service providers, IoT technologies
can gather data from shared transport
vehicles, enabling operators to optimise
their services by reducing wait times,
identifying the most popular routes, and
adjusting service offerings accordingly.
From a logistics perspective, vehicle-
sharing services like Udrive can evolve to
use this valuable data to provide more
customised vehicle options, benefits, and
pick-up and drop-off locations, reducing
travel time and increasing commute
satisfaction.
Fractionated Ownership
Another phenomenon taking over in
several industries is Fractionalisation,
which divides ownership into smaller
units. It can enhance the marketability
and liquidity of assets which would
otherwise be illiquid.
Owning a car is no longer financially
feasible, and people are turning to car-
sharing platforms to save money and
get better value. Car sharing reduces
financial barriers to access, as users
don’t need to bear total ownership
costs, including the vehicle’s price and
maintenance, insurance, and parking.
Simultaneously, car sharing encourages
efficient resource use. While most
cars sit idle when multiple users share
a car, this model ensures efficient
usage, reducing the need for parking
space and decreasing the number of
vehicles on the road, alleviating traffic
congestion and reducing environmental
impact. Alternatively, car rentals have
a minimum required spend of 24
hours, while car sharing at its most
fractionalised level is charged per
minute. Customers
can typically select
a model, pay a fee
for daily, weekly, or
monthly usage and
can cancel at any time.
Allowing assets to be
traded in smaller units
reduces barriers to
entry and exit, enabling
efficient price discovery
and risk diversification.
Envisioning A
Sustainable Future
As we move towards
a more sustainable
future, we must begin steering the focus
away from private car ownership towards
shared smart transportation. According
to an independent study, about 85%
of Riyadh’s eight million daily trips are
taken by car. The transition to more
sustainable transport is significant in
Gulf cities that were built around car
dependency but now need to prioritise
meeting their net-zero pledges. We
need efficient, cost-effective, and
environmentally responsible solutions
to help people move from one point to
another.
With the population of the MENA
region expected to increase to 581 million
in 2030 and 724 million by 2050, shared
mobility alternatives can play a crucial
role in improving air quality, promoting
a balanced environment, and increasing
accessibility to transport for underserved
populations. By reducing the number
of private vehicles on the road, shared
mobility can contribute to the region’s
efforts to decarbonise and secure a safer,
sustainable, and more mobilised world
for future generations.
Nicholas Watson, Co-founder & CEO, Udrive
Page 16
16 | LOGISTICS NEWS ME | AUGUST 2023
WWW.CBNME.COM
CASE STUDY
Executive Summary
As India’s biggest gifting solutions provider, Ferns N Petals (FNP)
is the one-stop shop for all gifting needs, be it flowers, cakes,
plants, personalised gifts, decoration services, or experiences.
Following its resounding success in the subcontinent, FNP
expanded into the UAE as FNP AE, where it quickly became an
e-commerce leader and the provider of choice for businesses and
individuals looking to leave a lasting impression.
While FNP AE maintains an internal delivery fleet to manage
the predictable baseline of daily deliveries, the firm is keenly
aware of the potential for large spikes in demand that are unique
to its industry. And while it began its partnership with Yango
Delivery to manage these surges, the company soon realised
more value than it initially expected. From empowering FNP
AE to introduce impactful new services and revenue streams to
helping optimise routes and cutting operational costs, Yango
Delivery offers a bouquet of benefits that have proven invaluable
to the famous online florist.
Challenges
> Complexity of accommodating large spikes
in delivery volumes during events and special
occasions
> Ensuring the freshness of goods in transit to
maintain the highest quality standards.
> Needed to strengthen the redundancy of delivery
operations critical to customer satisfaction and
business growth.
Results
> Can effectively manage 700%+ spikes in delivery
volume on special occasions such as Valentine’s
Day, Mother’s Day, and Father’s Day.
> Live tracking of delivery riders allows customers
to be updated with real-time data.
> Empowered to introduce a new fast-track service
— ‘Touch a Heart in 60 Minutes
A SYNERGISTIC
PARTNERSHIP
FERNS N PETALS PARTNERS WITH YANGO DELIVERY
TO TOUCH HEARTS ACROSS THE UAE
LNME
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LOGISTICS NEWS ME | AUGUST 2023 | 17
A SYNERGISTIC PARTNERSHIP | FERNS N PETALS PARTNERS WITH YANGO DELIVERY
About FNP AE
Few companies dare make it
their mission to ‘wow every
customer, every time’. But
Ferns N Petals UAE (FNP AE)
follows an approach grounded
in innovation, technology and
being people-centric to make
good on this commitment.
For this reason, in just eight
years since its establishment
in the country, the company
has become the largest online
gifting shop in the Emirates.
Expect the Unexpected
Enabling businesses and
individuals across the UAE to
commemorate special moments
with fresh flowers and fabulous
gifts is the hallmark of FNP
AE’s business. “We’re in the
business of making heart-
warming surprises possible,
which takes significant
amounts of planning and
foresight,” said Vijay Ghadge,
Vice President & Business
Head at FNP UAE.
The company maintains an
in-house fleet of vehicles to
manage the predictable volume
of daily deliveries. However,
the potential for these volumes
to spike far beyond the daily
averages is significant in gifting.
“Take Valentine’s Day, for
example; we see an incredible
700% spike in orders on this
day alone. Mother’s Day and
Father’s Day typically send our
order volumes skyrocketing
by 400%,” said Ghadge.
“Handled correctly, this has
the potential to benefit our
business tremendously. But on
the flip side, if we fail to meet
the delivery expectations of
our customers on these special
occasions, the impact on our
brand image and ability to
attract and retain customers
could be disastrous. There’s
simply no room for error!”
Recognising this risk but
also aware of the need to keep
its operating costs in check
to hold to its commitment
to providing customers with
true value for money, FNP
AE decided to work with a
qualified delivery partner. “We
wanted to build redundancy to
assure our customers that their
gifts would be delivered on
time without scaling up our in-
house fleet. Teaming up with a
last-mile logistics expert meant
we could rely on their scale
and specialisation to expand
our delivery capabilities only as
needed,” said Ghadge.
A Trusted Expert
The entry of Yango Delivery
into the UAE market provided
FNP AE with the precise
opportunity they needed.
Aware of the company’s
established global presence
and proven track record and
impressed by its unparalleled
technology-driven innovation,
FNP AE became the first
company in the UAE to sign up
with Yango Delivery. “Right
from the get-go, their support
was incredible. Their speed of
response — around the clock
— is unmatched. If we have
a surge requirement, we only
need to inform them a day in
advance. And if we need to
adjust our delivery forecasts,
they are incredibly flexible,”
said Ghadge. “They also go the
extra mile in providing us with
the same delivery agents who
are now well-versed in our
protocols, eliminating the need
for constant training.”
While this support from
Yango Delivery greatly
benefited FNP AE’s business,
the partnership between the
organisations has blossomed
because of all the added
value made possible by the
technology platform that the
logistics company provides.
“We have worked with other
providers in the past, but
Yango Delivery has a clear edge
with the range of differentiated
services and innovations they
offer,” said Ghadge. “For
example, they offer multi-point
pick-up and drop-off, which
not only saves precious time
and ensures the freshness of
perishables such as cakes and
chocolates, but also enables us
to save on costs.”
Yango Delivery’s technology
platform makes the live
tracking of drivers and
riders possible and offers
powerful route planning and
optimisation algorithms.
“These features mean we
now expend minimal effort
on planning deliveries and
can keep our customers up to
date on precisely where their
orders are,” said Ghadge.
“This is especially beneficial
during highly critical events
and special occasions when the
margin for error is razor thin.”
Perhaps most impressive
is that Yango Delivery has
enabled FNP AE to innovate
and create new revenue
streams. The gifting solutions
provider has introduced its
unique and highly popular
‘Touch a Heart in 60 Minutes’
service, leveraging the last-mile
logistic provider’s Express
Delivery option. “Whether a
customer forgot to wish their
parents their anniversary or
wants to plan a last-minute
surprise party for a spouse, we
make their celebrations special
with our hassle-free, one-
hour delivery of gifts — made
possible by Yango Delivery,”
said Ghadge.
As FNP AE continues its
expansion across the UAE,
offering its world-class gifting
services to an increasingly
wider base of customers in
the country, it will rely on
the support of its trusted last-
mile logistics partner. “With
Yango Delivery, we have the
confidence to scale at pace,
knowing that our delivery
operations — which are such
a critical and impactful part
of our business — are safely
in the hands of the experts,”
concluded Ghadge.
“WE WANTED TO BUILD REDUNDANCY TO ASSURE OUR CUSTOMERS THAT THEIR GIFTS
WOULD BE DELIVERED ON TIME WITHOUT SCALING UP OUR IN-HOUSE FLEET. TEAMING
UP WITH A LAST-MILE LOGISTICS EXPERT MEANT WE COULD RELY ON THEIR SCALE AND
SPECIALISATION TO EXPAND OUR DELIVERY CAPABILITIES ONLY AS NEEDED.”
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EXPERT INSIGHT
LNME
D
uring the past few years, the global
electric vehicle (EV) industry has
experienced tremendous growth.
The global electric vehicle sales went
from approximately 3.1 million in
2020 to over 9 million in 2022. IDTechEx
predicts more than 12 million EV sales
in 2023 and exponential growth in the
coming years—as many as 20 million EV
sales in 2025. Global sales of commercial
EVs also more than doubled in 2021, and
IDTechEx finds that large global truck
makers expect 35 to 60% of their annual
sales to be electric trucks by 2025.
EV charging infrastructure is growing as
well. According to IDTechEx, there were
nearly 2.7 million public charging points
worldwide in 2022. About 960k chargers
were installed globally just in that same
year. IDTechEx estimates that 222
million charges will be needed by 2034
to support the growing global EV fleet.
IDTechEx also predicts the cumulative
global investment in global charging
infrastructure will exceed US$123 billion
by 2034 (hardware cost alone).
There is undoubtedly a huge push to
build global DC fast-charging networks.
The US government is providing more
than US$5 billion in funding and
incentives as part of the NEVI program
to create a coast-to-coast fast charging
network, and many countries in Europe
are rolling out similar programs following
EV CHARGING INFRASTRUCTURE
IS A GROWING MARKET
Reliable, Widely Available EV Charging
Infrastructure Is Critical to Support the
Booming EV Market, Reports IDTechEx
ORIGINALLY WRITTEN BY SHAZAN SIDDIQI, TECHNOLOGY ANALYST
AT IDTECHEX, EDITED BY VIBHA MEHTA
Page 19
LOGISTICS NEWS ME | AUGUST 2023 | 19
EV CHARGING INFRASTRUCTURE IS A GROWING MARKET
the AFIR regulations to spur
EV charging infrastructure
growth. 2023 will be a big
year for EVs and EV charging,
but there’s more to the story.
IDTechEx’s latest report,
“Charging Infrastructure for
Electric Vehicles and Fleets
2024-2034”, covers the trends
and developments in the EV
charging industry.
EV Charging Solutions Are
Diverse
As electrification penetrates
multiple vehicle markets,
the charging infrastructure
needed is also evolving. The
IDTechEx report provides in-
depth coverage of multiple EV
charging solutions, including
private AC charging, public
DC charging, megawatt
charging, battery swapping,
and wireless charging.
Vehicle platform voltages
are shifting from 400 to
800 V architectures with
traction-integrated onboard
DC charging, unlocking
even higher charging powers
while bringing new thermal
challenges. The IDTechEx
research aims to clarify the
different technologies available
today and those emerging with
potential for disruption in the
future.
Technologies like destination
or wall box DC chargers,
megawatt charging, robotic
charging, battery-buffered
charging, off-grid solar
charging, and mobile charging
are examples of the emerging
EV charging solutions included
in IDTechEx research. This
report covers the key players
within these fields, benchmarks
their products, and provides
a market outlook for their
adoption.
Different Markets Have
Different Characteristics
The amount of EV charging
infrastructure, both publicly
accessible and private, is
surging, whether analysed
by installed capacity or
number of charging points.
The deployment of DC fast
chargers has far outpaced AC
chargers in the last few years.
The number of charging points
and their distribution is still
important but less singularly
than before. As the capacity
of EV batteries and the power
that charging stations can
dispense have increased, the
metric of installed capacity
per EV (and peak network
capacity) has become more
important than the number
of charging stations per EV.
Generally, in Europe, a trend is
seen in countries with the least
number of public charging
points to provide an above-
average amount of installed
charging capacity.
Countries with more public
charging points tend to have
many more AC chargers.
They have usually started
their EV transition earlier.
Countries that have started
their deployment later tend to
have fewer stations but more
high-powered DC ones. These
differences are due to the state
of technological development
when a given country started
deploying the chargers, how
the charges were financed, and
local market conditions.
When choosing between AC
and DC charging for fleets,
the choice comes down to
the type of vehicle, battery
size, and time available for
charging concerning duty
cycles. Level 2 chargers provide
sufficient power to recharge
light and medium-duty vehicles
overnight, but larger battery
capacity long-haul trucks will
require DC fast charging.
Technologies like wireless
charging and battery swapping
have also been implemented
successfully for fleets, with
various cast studies included in
the report.
The latest IDTechEx report
aims to keep up with the
changes and developments in
EV charging by monitoring
and analysing the EV charging
industry, its effects and
regulations, and the latest
technological trends and
innovations.
Shazan Siddiqi, Technology Analyst at IDTechEx
THE AMOUNT OF
EV CHARGING
INFRASTRUCTURE,
BOTH PUBLICLY
ACCESSIBLE
AND PRIVATE, IS
SURGING, WHETHER
ANALYSED BY
INSTALLED CAPACITY
OR NUMBER OF
CHARGING POINTS.
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3PL
LNME
KSA’S 3PL LUMINARY
EVERYTHING YOU NEED TO KNOW ABOUT
UWC AND ITS SPURRING KINGDOM-WIDE
ECONOMIC DEVELOPMENT
U
nited Warehouse Company (UWC)
is the leading 3PL and fully digital
logistics service provider in Saudi
Arabia, providing a full range of
logistics services designed to meet
the constantly changing needs
of their esteemed clients both inside
and outside the Kingdom. UWC has
established itself as a trusted partner at the
forefront of the Saudi Arabian logistics
sector thanks to its unwavering dedication
to customer satisfaction and operational
excellence. “Our latest adoption of
cutting-edge digital logistics solutions
positions us as the vanguard of digital
innovation in line with the visionary Saudi
Vision 2030,” says Eng. Fathi Abdullah
Baisa, Managing Director of United
Warehouse Company.
At UWC, they provide a wide range
of warehousing solutions that include
distribution, order fulfilment, inventory
management, and storage services. The
expertise spans numerous industries and
encompasses various goods, including
electronics, pharmaceuticals, automotive
parts, and fast-moving consumer goods
(FMCG). “Moreover, we provide value-
added services, including labelling, kitting,
repackaging, and customised packaging
solutions, catering to the unique
requirements of each valued client,” states
Fathi.
Correspondingly, UWC has received
steadfast support because of the Saudi
government’s unwavering dedication
to encouraging the development and
growth of logistics businesses. The
government has implemented several
policies to enhance infrastructure,
streamline regulatory procedures, and
promote investments in the logistics
industry as part of the revolutionary
Saudi Vision 2030 initiative. This all-
encompassing strategy involves creating
crucial transportation hubs, like ports
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LOGISTICS NEWS ME | AUGUST 2023 | 21
KSA’S 3PL LUMINARY | UWC AND ITS SPURRING KINGDOM-WIDE ECONOMIC DEVELOPMENT
and airports, as well as economic cities
and free zones. These extensive initiatives
have allowed logistics businesses to thrive
and advance the nation’s lofty economic
diversification objectives.
“UWC wholeheartedly aligns with the
unique factors driving logistics companies
towards realising Saudi Vision 2030.
As the Kingdom seeks to reduce its
reliance on oil revenues and embark on
a diversified economic journey, logistics
assumes a paramount role in facilitating
trade and supporting many industries,”
shares Fathi. As a result, UWC is well-
positioned to take advantage of this once-
in-a-lifetime opportunity by providing
cutting-edge logistics solutions that
perfectly complement the goals of Saudi
Vision 2030. They improve operational
efficiency and reduce our environmental
impact by investing in advanced
technology, automation, and sustainability
initiatives, supporting the Kingdom’s
agenda for sustainable development.
The 3PL market in Saudi Arabia is
presently going through a remarkable
transformation, driven by exponential
growth and rising demand for streamlined
supply chain management. With its
extensive network, unconventional
facilities, and unmatched industry
knowledge, UWC leads the development
of this dynamic industry in the Kingdom.
Fathi adds, “Our commitment to
innovation and the adoption of emerging
technologies allow us to offer end-to-
end solutions that optimise supply chain
processes, empowering
businesses to achieve
unparalleled operational
excellence.”
UWC quickly
adapted to the new
normal in response
to the unprecedented
challenges posed by the
COVID-19 pandemic, putting in place
various agile measures. Among them
is the rigorous execution of meticulous
health and safety protocols, ensuring the
welfare of their cherished workers and
customers. “Furthermore, we diversified
our transportation options to overcome
disruptions and proactively leveraged
technology to facilitate remote operations
and contactless deliveries. With an acute
focus on enhancing our e-commerce
capabilities, we efficiently catered to the
surging demand for online retail, thus
fortifying our position as a reliable and
adaptable logistics service provider,”
explains Fathi.
Like any industry, the logistics sector
faces its share of difficulties, but UWC
views these roadblocks as opportunities
for expansion and innovation.
Infrastructure limitations in some areas,
regulatory complexities, talent acquisition
and retention issues, and the need to
constantly adapt to changing market
demands are some of the main challenges
they currently face. “Nevertheless, we
embrace these challenges as catalysts
for progress, diligently working
towards surmounting them through
strategic investments and collaborative
partnerships,” highlights Fathi.
UWC has enthusiastically embraced
digital technologies in all facets of its
operations because they recognise the
critical role that digital transformation
plays in enhancing operational efficiency
and exceeding customer expectations.
“OUR COMMITMENT TO INNOVATION AND THE
ADOPTION OF EMERGING TECHNOLOGIES
ALLOW US TO OFFER END-TO-END SOLUTIONS
THAT OPTIMISE SUPPLY CHAIN PROCESSES,
EMPOWERING BUSINESSES TO ACHIEVE
UNPARALLELED OPERATIONAL EXCELLENCE.”
>>>
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The use of cutting-edge
warehouse management
systems, real-time tracking
and visibility tools, and
electronic documentation
procedures are all included
in this. “By leveraging
these transformative
digital solutions, UWC
enhances its capabilities
in crucial areas such as
inventory management,
order tracking, and data
analytics, empowering us to
deliver unparalleled services
to our esteemed clients,”
comments Fathi.
UWC sees the Saudi
Arabian logistics sector
as having a bright future.
The industry is positioned
for continued growth
because of expanding
trade volumes, an ever-
expanding e-commerce
environment, and steadfast
government initiatives.
UWC is steadfast in its
determination to use its
knowledge, cutting-edge
solutions, and unwavering
commitment to meet and even
surpass customer expectations,
solidifying its position as a
reliable partner for companies
navigating the changing
logistics landscape in the
Kingdom.
In conclusion, UWC is proud
to be at the forefront of the
logistics industry in Saudi
Arabia, offering unparalleled
expertise, state-of-the-art
digital solutions, and a
steadfast commitment to
customer satisfaction. “With
a keen eye towards the future,
we continue to embrace
digital transformation, seize
opportunities for growth
and innovation, and actively
contribute towards the
realisation of Saudi Vision
2030,” concludes Fathi.
3PL
LNME
Page 23
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CARGO
LNME
Page 25
LOGISTICS NEWS ME | AUGUST 2023 | 25
THE TURKISH AIR ENABLER | TURHAN ÖZEN
THE TURKISH
ENABLER
AIR
Turhan Özen, Chief
Cargo Officer at
Turkish Airlines,
outlines the vital strategic advancements
for the ever-efficient Turkish Cargo
T
urkish Cargo, the air cargo section of Turkish
Airlines, is primarily responsible for various
goods’ local and international airfreight
transportation. On its fleet of cargo planes,
Turkish Cargo transfers cargo in the form
of goods, products, and commodities.
Administering a vast worldwide network of locations
linking different cities and nations – cargo can be
transported effectively worldwide because of this
network. Here is everything you want to know about
the Turkish air cargo operator. >>>
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Strategic Alignment In The Evolving
Aviation Industry
Various elements shape Turkish Cargo’s
growth targets. As the air cargo brand
that flies to more countries than any
other in the world, Turkish Cargo aims to
maintain leadership in terms of network
reach. Expanding the global network
through strategic partnerships, alliances,
and collaborations with other airlines
and cargo operators enables the carrier
to access new markets, destinations,
and customer bases, thus, solidifying its
position as a leading player in the global
aviation industry.
To stay competitive in the dynamic
air cargo industry, we prioritize
understanding and anticipating the needs
of our customers. We develop high-value-
added products that enhance the customer
experience, offering innovative services
and tailored solutions regarding product
variety and service quality.
The industry has undergone significant
transformations in recent years due to
increased demand for air cargo and the
rise of e-commerce, accelerated by the
pandemic. In response, Turkish Cargo has
been enhancing the digitalization of air
cargo processes to adapt effectively to the
changing industry. The carrier has also
been investing in logistics, warehousing
and smart system technologies to
boost operational efficiency, optimize
operations, and enhance the quality of
service.
As part of Türkiye’s flag carrier Turkish
Airlines, Turkish Cargo has embraced the
targets the International Air Transport
Association (IATA) set to reduce carbon
emissions and combat climate change.
We are committed to minimizing carbon
emissions from our operations and
integrating climate change considerations
into Turkish Cargo’s business processes
and decision-making mechanisms.
The carrier’s sustainability culture is
continually evolving by implementing
relevant projects. By considering these
factors and continuously adapting to
the changing aviation industry, Turkish
Cargo aims to maintain its position as
a leading global cargo brand, delivering
exceptional value to its customers and
stakeholders.
Competitive Advantage and Future Plans
The air freight industry in Türkiye
and the Middle East is poised for a
promising future, and we are confident
in its upward trajectory in this dynamic
region. The region has consistently
experienced growth in trade volumes,
driven by robust economic development
and favourable business environments.
This trade expansion is expected to
generate increased demand for efficient
and reliable transportation solutions,
making air freight a vital component of
the region’s logistics landscape.
The region’s exponential rise in
e-commerce has significantly increased the
demand for efficient air freight services
to transport e-commerce shipments. As
Turkish Cargo, we are well-positioned
to seize this opportunity and meet the
evolving needs of the thriving e-commerce
sector.
Türkiye’s strategic location is a hub for
international trade and logistics, gaining
even greater significance as the centre
of international business and economy
shifts from west to east. In this regard,
Turkish Cargo’s new hub, SMARTEST,
located in Istanbul and equipped with
state-of-the-art systems, plays a crucial
role as a transit hub connecting Europe,
Asia, and Africa, which are essential
trade connection points. With an
extensive global network linking over
340 destinations worldwide, including
major cities and emerging markets,
Turkish Cargo is a crucial facilitator of
cross-border trade and a supporter of
international supply chains.
Turkish Cargo is interconnecting the
two ends of the world in a single day.
Thanks to its worldwide flight network,
Turkish Cargo reaches Los Angeles, the
westernmost destination in the USA,
in approximately 14 hours and Tokyo,
the easternmost destination in Asia, in
about 13 hours. Turkish Cargo has been
increasing the frequency of flights to
important production centres and markets
worldwide. Leveraging hub advantage
and network leadership, the carrier has
reached a substantial competitive edge
worldwide to provide its customers with
comprehensive access and connection
opportunities.
Post COVID-19
We foresee a positive outlook for the
industry in 2023 and beyond. The global
trade volume is expected to continue its
growth trend, surpassing pre-pandemic
levels. Air cargo played a crucial role
in the recovery of global supply chains.
As Turkish Cargo, we were essential
in ensuring the uninterrupted flow of
the world’s supply chain during the
pandemic. Within this framework,
Turkish Cargo is committed to delivering
services that go beyond expectations
CARGO
LNME
Turhan Özen, Chief Cargo Officer at Turkish Airlines
Page 27
and actively contributing to global trade
recovery.
The increasing demand for e-commerce
shipments has fuelled the industry’s
continuous growth, leading to logistics
and supply chain management
innovations. The surge in e-commerce,
combined with the growing reliance on
air cargo transportation, will catalyse the
expansion of our sector in the foreseeable
future. Turkish Cargo is well-positioned
to seize the opportunities the flourishing
e-commerce market presents, further
boosting our growth trajectory. Turkish
Cargo offers practical solutions in terms of
product service, including the shortest cut-
off, quick ramp transfers connections and
uplift delivery times.
To accommodate the future e-commerce
industry, Turkish Cargo set up WWE- a
joint venture with ZTO Express and
PAL Air Ltd. This global express/ courier
company is helping us to build our
cross-border business by offering services
for all door-to-door logistics activities,
trucking, collection & distribution, freight
transportation, cross-docking, and final
mile delivery.
The pandemic has highlighted the
resilience and adaptability of the cargo
industry. It has accelerated the industry’s
digital capabilities by leveraging
digitalization, automation, and data
analytics for operational optimization.
Artificial intelligence, blockchain, and
IoT are increasingly used for cargo
tracking, supply chain visibility, and
risk management. These trends will also
shape the future of the air cargo industry,
which continues to evolve in response to
changing global dynamics.
Importance of Digitalization
Turkish Cargo is the fastest-growing air
cargo brand in the world and aims to
become one of the top three brands in
the coming years. Such a target requires
technological change and development,
and we are building the carrier’s strategy
around this goal. Data has become one
of the most valuable company assets, and
we regard predictive data analytics as a
critical step in enhancing our operational
capabilities. Data analytics, integrated
fully into cargo processes, will allow for
a better estimation of the performance of
the supply chain network, reduce delays,
and increase operational productivity by
optimizing cargo routes and timings.
Thanks to the ability of the
Transportation Management Systems
of freight forwarders to connect directly
to the airline’s operational systems,
booking processes and shipment
tracking processes become quicker, more
practical, and seamless. Such systems
will also enhance customer satisfaction
by providing real-time information to
the shippers, consignees, and carriers.
Turkish Cargo strives to improve sales
performance, understand customer
requirements better, and observe trends
instantaneously.
Mainstreaming the e-AWB initiative
is another important step, and we
have made good progress in this area.
Overall, digitized processes will be more
productive and sustainable.
Automation In Ground Operations
Turkish Cargo’s hub, SMARTEST,
is one of the most advanced cargo
facilities in the world, where cargoes
are stored and transferred by computer-
controlled Automated Storage and
Retrieval System (ASRS) without
requiring an operator or forklift.
In addition, ULD storage processes
are automated using ULD Storage
System. Thanks to these smart storage
management systems, we expedite
our operational processes, minimize
any unfavourable circumstances, and
achieve cost savings.
‘Work Order Project’ is another
investment made by Turkish Cargo in
terms of technology and enables the
synchronization and the checking of
the in-warehouse handling processes
through automated systems. Using the
RPA technology in Turkish Cargo’s
business processes as integrated with the
carrier allows for the performance of
the manually performed and recurrent
works on a 24/7 basis employing
our metal-collar staff without any
dependence on humans. Thus, Turkish
Cargo has been directing its workforce
to tasks delivering more added value
to boost staff motivation and minimize
errors based on human factors.
Turkish Cargo is well on the way
to always monitoring emerging
technologies and creating scenarios
with other coming novelties to enhance
customer experience.
THE TURKISH AIR ENABLER | TURHAN ÖZEN
“WE DEVELOP HIGH-VALUE-ADDED PRODUCTS THAT
ENHANCE THE CUSTOMER EXPERIENCE, OFFERING
INNOVATIVE SERVICES AND TAILORED SOLUTIONS
REGARDING PRODUCT VARIETY AND SERVICE QUALITY.”
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LNME
PORTS
HOW ARE
MIDDLE EASTERN
ECONOMIC GROWTH?
PORTS
REDIFINING
T
he Middle East is a nautical trading area,
and its multiple ports are essential for
facilitating commerce and economic
activity. The Middle Eastern ports deal with
a range of cargo, including bulk goods,
general commerce, oil and gas, and containers,
making them an ideal entryway for trade between
Europe and Asia. Ports help prosperity and economic
growth in a variety of ways. They serve as gateways
for global trade, supporting the import and export of
goods and the development of local industrial and
commercial clusters, which supports a few other
components that comprise this collection of funda-
mental pillars.
However, ports frequently include logistics-related
operations, leaving other vital variables it fuels aside.
They produce both direct and indirect job possibili-
ties. They need a crew to oversee cargo handling,
manage port operations, offer logistical support,
and maintain port infrastructure. Additionally, ports
encourage the growth of jobs in associated sectors
like manufacturing, warehousing, and transportation.
Alternatively, ports with passenger terminals could
nourish the tourism and hospitality industries. Tour-
ists are drawn to cruise ships and ferry services,
which bring in money for nearby establishments,
including hotels, restaurants, and tourist attractions.
But one of the biggest successes is the country’s
financial prosperity. In their immediate proximity, ports
frequently promote the growth of industrial and commer-
cial clusters. An efficient port draws companies to locate
factories and warehouses nearby, building a network of
interconnected sectors that profit from one another’s
presence. Consequently, ports in less developed areas
might serve as a driving force for regional growth. They
provide doors for economic development in places that
would have previously been excluded or had little ac-
cess to the world market. Alternatively, adequate ports
may lower logistical expenses, improving global export
competitiveness.
Likewise, several ports in the Middle East act as tran-
shipment centres, including Jebel Ali in Dubai (UAE), Sala-
lah in Oman, and Port Klang in Malaysia. In addition, free
trade zones in several other countries, like the UAE, Qatar,
KSA, and Oman, provide a business-friendly environment
with various incentives and exemptions to draw foreign
direct investment (FDI). Middle Eastern nations may
leverage the advantageous position and simple access
to international markets by establishing free trade zones
close to ports to lure multinational businesses to set up
manufacturing, distribution, and logistics activities there.
To create an economic centre where people can facili-
tate trade, we have tapped into various Middle Eastern
ports growing and expanding with more incredible leaps.
BY VIBHA MEHTA
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CHRISTIAN ROELOFFS, Co-founder and
CEO of Container xChange, an online,
neutral container logistics platform,
provides us with a performance report
for the shipping and container logistics
sector in the Middle East for the period of
July to August 2023…
The year of 2023 has seen a significant
oversupply of containers, vessel capac-
ity and high uncertainty in the market
– which led to substantial rate erosion.
Average container prices are now 50-
70% below their peak, and there are no
signs of revival as we approach the busi-
est period in the shipping industry. It is
pretty evident that peak season is almost
invisible.
In this edition of Where Are All the Con-
tainers?, we explore this in detail through
chapters on the decline of exports in
Asia, crushing hopes for a peak season;
plummeting prices in the Middle East de-
spite high port performance; the impact
of India’s ban on rice exports on global
container shipping; container volume
and price decreases in Europe; and why
retailers in the US are still cautious about
a peak season despite a slight increase
in sales.
Of course—as usual—you will also find
detailed data and forecasts, average
(container) prices and pickup rates.
At Container xChange, we are a
technology company striving to simplify
global trade logistics by making pro-
cesses around the container as simple
as the box itself. We provide a neutral
infrastructure that connects all logis-
WHERE ARE ALL THE
CONTAINERS?
Your monthly global container
logistics update
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LOGISTICS NEWS ME | AUGUST 2023 | 31
tics companies to remove friction and
create economic opportunities. As part
of this mission, we are also continuously
studying the industry, market, partici-
pants, strategies, trends, etc and building
reports around them to share these
insights with you. We hope you enjoy yet
another update from our end.
The Middle East Has An Astonishing
Drop In Prices Despite High Port Perfor-
mance
Mwani Qatar, an integrated port and lo-
gistics services provider in Qatar, recently
announced a 32% increase in tranship-
ment container volumes across ports
in the country in the first six months of
2023. This increase was in comparison
with the same period last year. Shipping
livestock has recorded the highest rise
at 196%. This is an astonishingly high
surge, especially compared to the 5.3%
increase in shipments of building and
construction materials and the 5.5%
increase in shipments of vehicles and
equipment. Qatar’s ports reportedly han-
dled 1,316 vessels and 633,029 standard
shipping containers during this period.
Middle Eastern ports have performed
consistently well for the past couple
of years. They ranked again in the third
edition of the global Container Port Per-
formance Index (CPPI) 2022. It was pub-
lished by the World Bank and S&P Global
Market Intelligence earlier this year. The
King Abdullah Port topped the perfor-
mance index last year, and Jeddah Islamic
Port took the eighth position. Renewed
and maritime solid and logistics sectors
are now central to the Transport Strategy
of Saudi Vision 2030, aimed at diversify-
ing Saudi Arabia’s economy by 2030.
AD Ports-KPT Deal To Boost Pakistan’s
Economy
On the other hand, the UAE-nominated
AD Ports Group, an Emirati port operator,
and Pakistan’s Karachi Port Trust (KPT)
finalized a pertinent investment deal in
July. The agreement aims to strengthen
maritime trade ties between Abu Dhabi
and Islamabad. AD Ports Group will now
operate one of KPT’s terminals, the Ka-
rachi Gateway Terminal Limited (KGTL).
It is believed that the deal will help Pa-
kistan revive its economy by enhancing
its infrastructure for container logistics.
Demand for containers in the Middle
East has grown, so the Incheon Port
in South Korea recently launched a
direct container service from Incheon
to the Persian Gulf for the first time in
five years. Headquartered in Singapore,
SeaLead Shipping is a privately owned
global shipping line that has a presence
in 18 countries. SeaLead is now extend-
ing its Far East-Middle East service to
include calls at Incheon.
The Loadstar quoted their spokes-
person: “We will cover Incheon as an
additional call, using our FAM service
on a fortnightly basis, following demand
from customers for South Korea to
Middle East exports.” The FAM entails
service by eight vessels of 4,000 to
5,600 teu that call at Incheon, Busan,
Qingdao, Shanghai, Ningbo, Nansha and
Jebel Ali.
What Did Container Xchange’s Data
Find?
Despite the high port performance
and volume growth, ports in the Middle
East have recorded a surprising drop
in container prices. However, this is
aligned with the global price decrease
at the same time.
According to our platform data, the
average container prices in the Middle
East were at their lowest in July 2021.
While the cost in Jebel Ali was $3,183
in July 2022, it was $918 a year later,
almost a 75% decrease.
CONTAINER XCHANGE
ORIGINALLY WRITTEN BY CONTAINER XCHANGE TEAM. EDITED BY VIBHA MEHTA
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NESTLED along the alluring coastline of Dubai, Jebel Ali Port
stands as a beacon of maritime brilliance, wielding a plethora
of remarkable features that define it as a pivotal business hub.
This article unveils the exceptional advantages of this port
and its instrumental role in fortifying Dubai’s economy and
international trade.
UNRAVELLING THE KEY FEATURES
1. A Gateway to the Globe: Situated between Rotterdam and
Singapore, Jebel Ali Port is the region’s largest port, a vital
distribution centre and conduit for global trade. Its deep-sea
harbour boasts the unparalleled capacity to handle colossal
container vessels, facilitating seamless trade connections.
2. Specialised Infrastructure: Boasting 9,665 square meters
of cutting-edge cold storage floor space, the port caters
exclusively to perishable cargo with specialised storage
demands. This state-of-the-art facility ensures the secure
transportation of delicate goods.
3. A Haven for Large Cargo Vessels: Jebel Ali Port houses the
renowned General Cargo Terminal, encompassing 1.4 million
square meters with 27 berths and a 15-meter quayside depth.
This impressive infrastructure accommodates large and unique
cargo vessels with utmost ease.
4. A Vehicle Oasis: The port’s expansive storage yard efficiently
handles over 1 million vehicle units annually, showcasing its
versatility and dedication to fulfilling diverse trade demands.
EMPOWERING DUBAI’S ECONOMY AND TRADE
Jebel Ali Port has played a pivotal role in catapulting Dubai to
global economic prowess, becoming a cornerstone of its inter-
national trade landscape.
1. Connecting Dubai to the World: Jebel Ali Port’s far-reaching
trade connections have substantially elevated Dubai’s global
footprint. By fostering seamless trade, it has unlocked access
to markets worldwide, elevating Dubai’s economic standing.
PORT OF
UAE
JEBEL ALI
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BY KASUN ILLANKOON
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2. Impressive Trade Volume Growth:
Recent years have witnessed a steady
surge in the port’s trade volume, reaching
a record-breaking 14.0 million TEU in
2022. This surge has spurred economic
prosperity and boosted various sectors
within the emirate.
3. Engine of Job Creation: Jebel Ali Port’s
operations have generated substantial
employment opportunities, nurturing
a skilled workforce across sectors like
logistics, hospitality, and more. This
diversification has fortified Dubai’s
economic resilience.
4. Diversification Beyond Oil and Gas: The
port’s proximity to Jafza has encouraged
industrial growth, enabling Dubai’s
economy to diversify beyond traditional
sectors, solidifying its position as a
multifaceted business hub.
PIONEERING EFFICIENCY THROUGH
TECHNOLOGY
A commitment to cutting-edge technolo-
gies drives the port’s relentless pursuit
of efficiency. Discover how DP World
ensures seamless vessel arrivals, depar-
tures, and cargo handling processes.
1. Dubai Trade Platform: The port
leverages the Dubai Trade platform for
over 700 services, streamlining online
transactions, import/export, and customs
procedures. This digital approach
minimises paperwork and processing
time, expediting goods movement.
2. Embracing Automation: Automated
quay cranes and state-of-the-art
technologies optimise container handling,
such as Big Data and IoT systems. Real-
time cargo tracking ensures visibility
and control over movements, bolstering
overall efficiency.
3. The ‘Zodiac’ Revolution: At Container
Terminal 3, the ‘Zodiac’ automated
system transforms port operations.
This comprehensive terminal operating
system integrates various functions
and streamlines planning, trade flow,
and operational excellence.
4. Collaborative Spirit: Collaborating
with supply chain stakeholders has
fostered streamlined processes and
data exchange systems, reduced delays
and enhanced coordination.
NURTURING ENVIRONMENTAL
SUSTAINABILITY
Despite being a bustling trade hub, Jebel
Ali Port remains deeply committed to
environmental sustainability. DP World
has implemented initiatives to reduce
the port’s carbon footprint.
1. Real-Time Locating System (RTLS):
The RTLS enhances container
efficiency and reduces costs
by enabling remote monitoring,
troubleshooting, and improved
safety, thus contributing to reduced
emissions and enhanced environmental
stewardship.
2. Embracing Electric Terminal Trucks:
The transition to fully electric trucks in
the Electrical Terminal Trucks project
significantly curtailed the port’s carbon
footprint, demonstrating a remarkable
commitment to sustainable practices.
BUILDING FOR THE FUTURE
Jebel Ali Port is perpetually evolving to
cater to the burgeoning demands of
trade and shipping. DP World remains
steadfast in expanding and enhancing
the port’s capabilities.
1. Infrastructure Enhancements:
Constant investments in infrastructure
and operational optimisations bolster
efficiency and handling capacity.
2. Advanced Container Handling
Equipment: Deployment of cutting-
edge container handling equipment
caters to larger vessels and ensures
seamless operations.
3. Exploring Expansion Possibilities:
Feasibility studies explore potential
harbour channel and berth dredging to
accommodate future needs.
Enabling Seamless Connectivity
1. Extensive Connectivity: Jebel Ali Port
offers seamless access to over 180
shipping lines, connecting to more than
3.5 billion consumers worldwide.
2. A Sea-Air Bonded Corridor: The
dedicated sea-air customs bonded
corridor expedites cargo transition
from sea to air within 45 minutes.
3. Thriving Business Ecosystem:
Adjacent to the port lies Jebel Ali Free
Zone (JAFZA), an enticing business
ecosystem hosting over 9,500
companies from 130 countries, offering
incentives that foster a business-
friendly environment.
4. Comprehensive Transportation
Network: The port’s excellent road
connectivity and proximity to the
Dubai Metro Red Line and major
airports ensure efficient multimodal
transportation options.
CELEBRATING REMARKABLE
ACHIEVEMENTS
1. A Transformative Partnership:
DP World’s collaboration with A.P.
Moller-Maersk has driven operational
improvements and decarbonisation
efforts, exemplifying a commitment to
sustainable practices.
2. The Best Seaport in the Middle East:
Jebel Ali Port’s unparalleled excellence
has earned it the prestigious title of the
Best Seaport in the Middle East for an
astounding 28 consecutive years, as
recognised by the Asian Freight, Logistics,
and Supply Chain Awards (AFLAS).
PORT OF JEBEL ALI, UAE
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THE OPERATION OF DUBA PORT was handed over to NEOM in
2022 by national maritime regulator Mawani in accordance
with NEOM’s plan and the Saudi Ports Authority’s initiatives to
turn regional ports into internationally competitive logistics
hubs. The port, the principal seaport of entry to the northwest
of Saudi Arabia, will be rebranded to Port of NEOM. It is situated
near Oxagon, the centre of modern and clean industries in
NEOM. Since the transfer, essential capacities have been
increased to keep up with the increasing amount of goods
entering NEOM. Fixed contacts with CMA CGM, general cargo
handling, storage, and ongoing passenger services are some of
the newly added abilities.
“At the end of May, we had invested over SAR 7.5 billion
to support this phase. Contracts for design, dredging, quay
wall construction, and cargo handling equipment have been
conferred,” said Sean Kelly, Managing Director of Port of NEOM.
These developments represent the significant advancements
made in the Port of NEOM’s story and show the company’s
dedication to creating the world’s most technologically
sophisticated, effective, and environmentally friendly port
with the first fully integrated and automated supply chain and
logistics network.
KEY FEATURES
“Our vision is to build the world’s most technologically
advanced, efficient, and sustainable port with the first fully
integrated and automated supply chain and logistics network.
The green field nature of NEOM’s development allows us to
consider new operating designs,” shared Sean. Consequently,
a single facility will be built to house vessel operations,
PORT OF
SAUDI ARABIA
NEOM
LNME
TOP PORTS IN THE MIDDLE EAST
In an exclusive conversation with Sean Kelly, Managing Director of Port
of NEOM, Vibha Mehta gets an update on the reconstruction of one of
the biggest ports in the kingdom
Page 35
LOGISTICS NEWS ME | AUGUST 2023 | 35
warehouse operations, and the rail
delivery system. With this integrated
design—a ‘compressed supply chain,’ if
you will—and advanced automation, they
will reach previously unheard-of levels
of utilisation and throughput velocity,
two of the most critical indicators of port
efficiency. Of course, for environmental
efficiency and a net zero carbon footprint,
all of it was driven by renewable energy,
the majority of which was self-generated.
It is anticipated that the Port of NEOM
will handle a variety of cargo and trade.
This covers general cargo, containerised
goods, and required NEOM development
and construction supplies. Their objective
is to offer comprehensive logistics
solutions to meet the various demands of
the region’s businesses and industries.
CONTRIBUTION TOWARDS OVERALL NEOM
PROJECT
The Port of NEOM will be used to import
the goods and materials needed for
NEOM’s construction phase, and it is a
crucial early enabler for the development
of NEOM. Similarly, from construction to
operations, tenants in Oxagon will rely
heavily on the port. “To diversify and
expand the economies of NEOM, Saudi
Arabia, and the region,” Sean continued.
“The Port of NEOM will be a critical
enabler. It will greatly benefit NEOM’s
business partners, investors, tenants, and
ultimately residents because of the Port’s
location.”
In addition to NEOM, the Port will
significantly enhance the region’s
connectivity to the rest of the world,
boosting the economy of the Port’s
catchment area in Northwest Saudi
Arabia and opening up new trade routes
via regional sea feeder networks and an
inland intermodal corridor to the East.
ADVANCED TECHNOLOGIES
“Absolutely. The Port of NEOM will
incorporate advanced technologies
and automation into its operations. We
will utilise fully automated port and
warehouse equipment, ensuring 100%
man-machine separation for enhanced
safety and efficiency,” Sean added.
PORT OF NEOM, SAUDI ARABIA
“OUR VISION IS
TO BUILD THE
WORLD’S MOST
TECHNOLOGICALLY
ADVANCED,
EFFICIENT, AND
SUSTAINABLE PORT
WITH THE FIRST
FULLY INTEGRATED
AND AUTOMATED
SUPPLY CHAIN
AND LOGISTICS
NETWORK."
>>>
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They are putting sophisticated
technologies in place for automated
container storage and retrieval, like
Container High Bay (CHB). Artificial
intelligence will improve the order of
operational steps and end-to-end traffic
flows. The Port Customer Digital Platform,
Terminal Operating System (TOS), and
Warehouse Management System (WMS)
are additional integrated and automated
management systems that they will use
that are powered by AI.
GLOBAL TRADE
The Port of NEOM will enormously affect
local and international trade. The region’s
competitiveness will increase, and its
economy will grow as connectivity to
global markets is improved. It facilitates
international trade, attracting
businesses and stimulating
investment as a trade gateway
for NEOM and the larger
region. The port creates new
opportunities and establishes
NEOM as a significant participant
in the global supply chain
thanks to its advantageous
location on the Red Sea and
at the intersection of major
international trade routes.
ENVIRONMENTAL AND
SUSTAINABILITY MEASURES
Sean said, “Our sustainability
goals are ambitious and start
with our development program
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LOGISTICS NEWS ME | AUGUST 2023 | 37
and how we are building the Port, are
central to all design principles, drive
the equipment and systems selection,
and will be key KPIs for ongoing
operations. The dredging program
will include using pipelines instead
of trucks and zero direct discharge
into the sea. Quay wall construction
will use low carbon steel versus
alternatives or concrete to reduce the
project’s overall carbon footprint.”
The use of electric machinery will
maximise automation. It’s important
to remember that the port will
generate most of the power it needs.
Renewable energy will be used to
supply the remaining amount directly.
These are very significant. The overall
‘compressed supply chain’ model
and resulting efficiency levels, as
gauged by utilisation and throughput
velocity, position us to surpass our
sustainability goals. The Port of NEOM
will become one of the world’s most
environmentally friendly next-generation
ports thanks to the combination of these
initiatives.
EXPECTED TIMELINE
The port is being developed in stages,
and each step will add to the port’s
overall capacity and expansion. With
immediate start-up in 2025, Terminal
1 will have a throughput capacity of
more than 2 million TEUs annually. While
Terminal 2 won’t open until 2045, general
cargo and bulk capacity will be over 20
million freight tonnes by mid-2025.
JOB CREATION AND ECONOMIC GROWTH
The Port of NEOM will significantly aid
the creation of jobs and the expansion
of the local economy. As it grows and
becomes fully operational, a sizable
workforce will be needed to manage
the port’s operations, including cargo
handling, logistics, and administration.
“This will create employment
opportunities and contribute to the
local economy. Moreover, by acting
as a trade gateway and facilitating
international commerce, the port will
attract businesses and investments
to NEOM, further stimulating economic
development in the region,” shared Sean.
CONTRACTS TO SUPPORT THE EXPANSION
OF THE PORT
Contracts for Design, Dredging and Quay
Wall Construction, Facilities Construction
and Equipment for Container Terminals,
General Cargo Terminals, Bulk Cargo
Terminals and Marine Services, including
multiple utility and systems packages.
PORT OF NEOM, SAUDI ARABIA
“OUR SUSTAINABILITY GOALS ARE AMBITIOUS AND START WITH
OUR DEVELOPMENT PROGRAM AND HOW WE ARE BUILDING
THE PORT, ARE CENTRAL TO ALL DESIGN PRINCIPLES, DRIVE THE
EQUIPMENT AND SYSTEMS SELECTION, AND WILL BE KEY KPIS
FOR ONGOING OPERATIONS."
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A FULLY INTEGRATED industrial and logistics hub in Oman,
SOHAR Port and Freezone is strategically situated close to
Iran and other Gulf Cooperation Council states, just outside
the Strait of Hormuz. Because of its strategic location at the
crossroads of major trade routes between Europe, Asia, and
Africa, SOHAR offers unrestricted connections to billions
of consumers via land, sea, and air, as well as cutting-edge
logistics facilities for a variety of cargo. The port, which is
successfully run in accordance with the landlord port model,
also provides a welcoming regulatory environment, first-rate
transport options, and top-notch amenities. Therefore, the
hub is perfect for container shipping as well as the import and
export of a wide range of dry, break, and liquid bulk. As one of
the fastest-growing deep-sea industrial ports in the world,
SOHAR provides unprecedented opportunities for growth
and continues to transform Oman’s burgeoning maritime and
logistics sectors.
Each year, SOHAR Port receives thousands of calls from
vessels for the transshipment of containers and bulk cargo, as
well as investments from local and international businesses.
In line with this, the SOHAR Freezone is a rapidly growing
industrial complex that houses numerous reputable national
and international businesses that have grouped together to
form clusters in the agricultural bulk, petrochemicals, metal, and
logistics industries.
Approximately 75% of all imports and exports for the Omani
market pass through the port in Sohar, making it the entry point
to Oman. Home furnishings, automobiles, food, Agri-bulk, steel,
and raw materials like aggregates, limestone, petcoke, and
liquid bulk, among others. According to Oman Vision 2040, the
overarching long-term plan for Oman’s economic diversification
and development, the focus in the upcoming years will be
on the pharmaceutical, plastics, and food industries, as well
as on vehicle spare parts and renewable energy projects. In
this context, SOHAR is facilitating the global export of green
products made using clean technologies while assisting green
manufacturing industries to decarbonize and play a growing
role in the energy transition. Additionally, they want to hasten
the shift to a circular economy, which will help Oman’s economy
grow even faster.
OMAN
SOHAR PORT,
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Page 39
PORT CAPACITY AND ITS EXTENSION FOR
FUTURE HANDLING
With an annual throughput tonnage
of more than 77 million, the industrial
SOHAR Port welcomes more than 3,000
seagoing vessel calls. The port is one of
the few international ports with deep-
water jetties that can accommodate the
largest ships and has a reach of over
3.5 billion consumers by land, sea, and
air. The port area, which spans 2100 ha,
includes fully operational businesses
as well as extensive construction
projects and investments totalling more
than $27 billion. The SOHAR Freezone,
a 4,500-hectare development, has
attracted investors from 52 different
nations, along with the SOHAR Port. The
port has the capacity to grow by 150
hectares right away. There are plans
for another 800 ha of expansion. 500
ha of the freezone’s first phase are
almost entirely occupied, leaving 4000
ha available for both current and future
growth.
Future-ready to meet future demands,
SOHAR has consistently started large-
scale expansions and made investments
in infrastructure (re)developments and
advanced technology. Their occupancy
rate and the number of incoming vessels
both continue to rise at the same time.
Tens of thousands of jobs are created
because of the ongoing expansion of
SOHAR Port and Freezone, which also
enables them to become one of the
major industrial and logistical hubs in
Oman and the surrounding area.
The Oman Government, which
continues to prioritise and invest in
logistics infrastructure programmes as it
seeks to further strengthen the country’s
position on the world trade and logistics
map, has provided additional support for
SOHAR’s expansion. By 2040, Oman’s
Logistics Strategy 2040, which includes
investments in infrastructure and the
latest technology to upgrade ports,
airport facilities, and new road links, aims
to make Oman one of the top ten logistics
hubs worldwide.
AMENITIES AND SERVICES
The port and industrial area of Sohar is
divided into four main clusters: metals,
agricultural products, petrochemicals,
and logistics. The industrial area is
divided between two terminals, one for
general cargo run by the Dutch company,
C Steinweg and the second for liquids run
by ADVARIO Oman. Hutchison Whampoa,
a Hong Kong-based company, is in charge
of running a third terminal for containers.
Along with the terminals, SOHAR Port
offers a range of marine or nautical
services in close collaboration with
domestic and international businesses to
give ships calling at the port a one-stop
service.
Additionally, SOHAR provides port
boat services and anchorage services
for lay-up. All ships calling at the port
can also engage in bunkering and STS
(Ship-to-Ship) operations. Additionally,
SOHAR offers water and food services
that are available to all ships in the port
basin and the anchorage area. In addition,
all port users have access to a crew
change service, an updated live weather
report, full pilotage services, a change
of armed guards, and an upgraded Port
Management System.
In addition to offering investors top-
notch facilities and services, they
also offer numerous incentives and
advantages for setting up projects at
SOHAR, such as 100% foreign ownership,
attractive local labour requirements, zero
import/export duties, zero income tax,
and corporate tax exemptions for up to
25 years.
SOHAR PORT, OMAN
>>>
>>>
Page 40
SOHAR also provides a dedicated One-
Stop-Shop service for obtaining all
necessary registrations, licences, and
visas.
ADDRESSING SECURITY, SAFETY, AND
ENVIRONMENTAL CONCERNS
They are prioritising sustainable
practices in all of their activities, while
safety and security and environmental
sustainability are always on the top of
their agenda. At SOHAR, they believe that
ensuring high standards of safety and
minimising our environmental impact
are of vital importance to our business
continuity. Hereto, they work closely
together with relevant Government
authorities, tenants and local
communities, and international entities.
The HSSE department continuously
benchmarks with international
standards and exchanges best practices
with the shareholders, Port of Rotterdam
and Asyad.
In line with Oman’s global carbon
neutrality targets for 2050, SOHAR
is dedicated to fostering a more
sustainable future for their employees,
clients, and the communities in which
they operate. SOHAR also seeks to
reduce the environmental impact of its
operations.
As a result of the emergence of a
global hydrogen economy, Oman has
been exploring its capacity to produce
and export clean hydrogen, also known
as green hydrogen, at a reasonable cost.
The country hopes to produce millions
of tonnes of green hydrogen annually
by the year 2050. In this context, SOHAR
has actively invested in becoming
an industrial and logistics hub that
produces clean and green goods and
transports these to other countries by
enabling Green Manufacturing Industries
at its premises, contributing to the
energy transition.
SOHAR’s Environmental Monitoring
System, meanwhile, makes sure
that the complex and the nearby
communities have safe air, water, and
soil. In accordance with regulations
established by the International
Convention for the Prevention of
Pollution from Ships (MARPOL), they
also run a maritime waste collection
service. Moreover, SOHAR emphasises
its function in light of the transition to a
circular economy. Operating at SOHAR
is anticipated to be advantageous for
innovative businesses that concentrate
on generating revenue streams from
recovering valuable materials, used
materials, and/or developing innovative
products. When it comes to the safety
of their work environment, they aim
to limit occupational hazards, while a
safe work environment results in better
productivity.
COHESIVE ECOSYSTEM
At SOHAR, they combine international
expertise with regional knowledge. They
are confident that SOHAR Port and
Freezone will continue to expand and put
Oman on the map for international trade
and logistics with the ongoing support
of the shareholders at ASYAD Group,
Oman’s integrated logistics provider, and
the Port of Rotterdam in the Netherlands.
The interconnected local and
international businesses that make
up SOHAR’s industrial clusters
compete and work together in a top-
notch, strategically located business
environment. Because SOHAR promotes
growth in a variety of economic sectors,
it enables global partnerships and port
clusters with synergistic inter-sectoral
links that boost innovation, productivity,
and optimum efficiency and support the
socioeconomic development of Oman.
ECONOMIC DEVELOPMENT
The primary port of entry for import and
export in Oman is SOHAR, which boosts
the GDP and generates almost tens of
thousands of opportunities for direct
and indirect employment. In accordance
with the goals outlined in Oman Vision
2040, the country’s road map for long-
term economic development, SOHAR is
currently assisting in the development
of Oman’s logistics infrastructure and
economic diversification with a focus
on sustainable development, expansion,
and cutting-edge technology. Since
port-related activities account for a
sizeable portion of the value added to
the national economy and contribute to
the process of economic diversification,
their activities have a significant positive
economic spillover to the rest of Oman.
As previously mentioned, Oman’s
Logistics Strategy 2040 is a roadmap
for transforming Oman into a top-
ten logistics hub by the year 2040. It
includes investments in modernising
ports, airport facilities, and new road
links using cutting-edge technology
and infrastructure. In this regard, the
ongoing development of SOHAR Port
and Freezone opens up new prospects
for increased throughput, which
boosts economic value, generates
tens of thousands of jobs, and enables
us to establish ourselves as one of
the principal industrial and logistical
hubs in the area. The integrated
industrial, logistics, and port complex
SOHAR will house full value chains for
manufacturing, food production, and
energy in 2040.
LNME
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Page 41
LOGISTICS &
TRANSPORT
2023
AWARDS
SEPTEMBER 22, DUBAI | SOFITEL DUBAI THE PALM
EDITORIAL
OPPORTUNITIES
COMMERCIAL
OPPORTUNITIES
VIBHA MEHTA
+971 58 631 4145
vibha@bncpublishing.net
JOAQUIM D’COSTA
+971 50 440 2706
jo@bncpublishing.net
#LNMEAWARDS
FACEBOOK.COM/LOGISTICSNEWSME
@LOGISTICSNEWSME
LOGISTICS NEWS ME
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EVEN THOUGH HAMAD PORT started operating
in December 2016, the port’s formal opening
was held on September 5th, 2017, under the
patronage of Emir H.H. Sheikh Tamim bin
Hamad Al Thani. Given an annual capacity of
7.5 million twenty-foot equivalent unit (TEU)
and under the management of Mwani Qatar,
Hamad Port is one of the biggest ports in the
Middle East. It is a for a long-time tangible
expression of the Qatar National Vision 2030,
a port that focuses on the social, economic,
ecological, and cultural growth of the country.
In addition to being well-positioned to
create a regional shipping centre in the GCC,
Mwani Qatar is also well-positioned to play
a significant role in diversifying the Qatari
economy to get it ready for a future without
hydrocarbons. Three new container terminals
are part of the multi-billion-dollar expansion,
which also adds a few other new, industry-
specific capabilities. The port also deals with
a range of speciality imports, such as cattle,
cars, and bulk grain, in addition to ordinary
cargo traffic. The port will also house a base
for offshore and marine support boats in
addition to this provision.
Historically, exports of oil and gas have been
a major part of Qatar’s economy. Qatar wants
to diversify its economy by growing its non-
oil industries, such as commerce, logistics,
manufacturing, and tourism, and is doing
this via building the Port of Hamad. The port
serves as a hub for the import and export of
a variety of items that are not just related to
oil and gas. At Hamad Port, new facilities and
infrastructure help Qatar increase commerce
with different countries. The port draws
foreign companies and boosts economic
activity by serving as an effective and
dependable centre for the import and export
of products. Foreign investors find it appealing
when a port is present since it offers quick
access to national and international markets.
The capabilities of Hamad Port foster an
advantageous environment for companies
wishing to establish a presence in Qatar or
utilise it as a local logistics hub.
Road and rail connections are part of a vast
transport network that connects to the Port
of Hamad. The port’s operations will profit
HAMAD PORT
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from this infrastructural improvement,
which will also increase the country’s
overall transportation effectiveness.
As a result, having a large port nearby
might encourage some economic
sectors to specialise and benefit from
the enhanced trade and logistical
opportunities. As a result, specialised
economic zones and clusters may
grow close to the port.
Correspondingly, Qatar wants to
build a more robust and sustainable
economy by diversifying its economic
activities through the development
of the Port of Hamad, lowering its
sensitivity to changes in oil prices and
the demand for energy globally. It is
consistent with the nation’s long-term
goals and wide economic growth
policies.
It is anticipated that these
developments will significantly
improve and revolutionise the
country’s logistics landscape in the
future:
> Increased Capacity and Efficiency:
The port’s capacity to handle
additional cargo will rise as it
continues to grow and develop.
As a result, processes and waiting
times for shipments will be reduced,
increasing the efficiency of the transit
of products.
> Gateway for Regional Trade:
Qatar is an important gateway for
commerce in the region thanks to
the Port of Hamad’s advantageous
location. As a result, Qatar can act as
a transshipment centre for products
coming from Asia, Europe, and Africa.
Qatar’s importance in global supply
chains will increase because to its role
as a regional logistics centre.
> Stimulating Economic Specialization:
With a productive and well-connected
port, various economic sectors in
Qatar are expected to specialise and
develop further. The port’s capabilities
may be used by businesses to import
raw materials, export finished goods,
and perform extra value production.
> Development of Logistics Zones: The
existence of a major port frequently
encourages the growth of industrial
and logistical zones nearby. For
companies involved in manufacturing,
distribution, warehousing, and
transportation, these zones offer
comprehensive services and facilities,
which helps to increase economic
activity and labour.
It’s crucial to remember that a
variety of factors, including economic
trends, governmental regulations,
technology breakthroughs,
and dynamics of international
commerce, will have an impact
on how the logistics environment
in Qatar, and in particular how
it relates to the Port of Hamad,
develops in the future. As a result,
these forecasts may not reflect the
actual developments in the port’s
effects on Qatari logistics.
HAMAD PORT , QATAR
>>>
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A SIGNIFICANT SEAPORT in Jeddah, Saudi Arabia, is commonly
referred to as Jeddah Islamic Port or Jeddah Islamic Seaport. It
is one of the most important gateways in the Red Sea area and
acts as a critical entryway for global trade, linking Saudi Arabia
to many other regions of the globe. Due to its advantageous
Red Sea coast location, it serves as a crucial maritime
crossroads for commerce between Europe, Asia, and Africa. Its
closeness to the Suez Canal further increases its significance
as a transhipment location. Well-connected to many areas and
ports across the world. It is a crucial component of the world
shipping network that makes transporting commodities to and
from Saudi Arabia possible.
Additionally, the port facilitates trade relations with the
rest of the world. The port acts as a crucial entrance and
departure point for products coming into and going out of
Saudi Arabia. It effectively manages the export of Saudi Arabian
goods, including oil, petrochemicals, and other commodities,
as well as the import of raw materials, consumer goods, and
industrial equipment. Modern port infrastructure and cutting-
edge cargo handling capabilities guarantee quick and easy
cargo processing. Efficiency shortens transportation times,
decreases costs, and boosts Saudi Arabian companies’ ability
to compete worldwide. The port is a transhipment centre
for cargo headed for other regional locations because of its
advantageous position. The ability to unload and reload cargo
into various boats makes trade across nations and regions
easier.
Correspondingly, the port’s role in promoting commercial links
significantly impacts the Saudi Arabian economy. It boosts the
nation’s GDP, creates job opportunities, and draws in foreign
JEDDAH ISLAMIC PORT
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capital, deepening its economic relations
with other countries. This leads to more
Companies and investors being more
likely to establish operations in areas
with well-developed transportation
infrastructure, including ports –
attracting more foreign investments. With
this, the flood of international investment
further fosters economic growth and
industrial development in Saudi Arabia.
The port provides the government
with significant income from customs
taxes, tariffs, and other charges for
cargo handling and port services. These
funds can be used for various public
services, infrastructure upgrades, and
development initiatives. They also go
towards the government’s budget.
The development of several businesses
and sectors in Saudi Arabia is supported
by the effective functioning of the
Jeddah Islamic Port. Local exporters and
manufacturers can grow their client
base and export volume by accessing
foreign markets. In turn, this encourages
industrial growth, aids in economic
diversification, and lessens reliance on a
few sectors.
Additionally, the Jeddah Islamic Port
is well-equipped with contemporary
facilities and infrastructure that enable
it to handle a variety of goods effectively.
The port’s transport capacity enables
commerce and boost Saudi Arabia’s
economy. The port helps with cargo
handling in the following ways:
> The Jeddah Islamic Port contains
specialised cargo terminals with cutting-
edge container handling machinery.
Gantry cranes and other specialised
equipment are used to quickly and
efficiently load and unload containers
from ships. This facilitates the rapid
and effortless transfer of commodities,
shortening vessel turnaround times and
guaranteeing the timely delivery of cargo.
> The port can handle bulk goods,
including cereals, minerals, and raw
materials. Bulk freight is effectively
loaded and unloaded using specialised
equipment, including grabs, hoppers, and
conveyor systems. These infrastructures
allow bulk cargo to move quickly between
ships, storage facilities, or transportation
vehicles.
> Jeddah Islamic Port services Roll-on/roll-
off ships that transport heavy machinery
and vehicles. These goods may be
loaded and unloaded quickly and easily
thanks to ramps and quays that have
been specially constructed to make this
procedure as efficient as possible.
> Safety and security are prioritised
while handling cargo at the Jeddah
Islamic Port. Strict security measures are
implemented to ensure the integrity of
the shipment and the seamless flow of
commodities while minimising delays to
trade activity.
Overall, Jeddah Islamic Port is a vital
actor in the region’s marine commerce
and dramatically contributes to the
economic growth of Saudi Arabia
thanks to its effective cargo handling
operations, strategic position, and robust
connectivity.
JEDDAH ISLAMIC PORT SAUDI ARABIA
>>>
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T
he largest ship repair facility in the Middle East is
Drydocks World. Being based in Dubai and a part
of the DP World portfolio of businesses has been a
sizable advantage that sets them apart from their rivals.
Both nationally and internationally, they have carved
out a sizable niche for themselves in the ship repair,
maintenance, and overhaul industry. The Dubai facility has
been instrumental in significant conversion projects intended to
increase vessel capacity, which has been especially important in
recent years.
The largest ship repair facility in the Middle East is also
one of the busiest ones currently in use. The shipyard offers
various services, such as ship repairs, vessel conversions, new
construction, maintenance, repair, and overhaul (MRO). They
have finished 20,000 projects over the past 40 years, such as
ship repairs, maintenance, upgrades, and offshore and onshore
services. The development of the new 70,000 square metre
‘South Yard’ facility will allow them to increase fabrication
capacity while incorporating cutting-edge technologies that
will help their clients in the oil, gas, and renewable energy
industries. Making ‘South Yard’ a top-notch facility with
state-of-the-art machinery, a significantly leaner execution
procedure, and an entirely new load-out facility for large
structures.
What Sets Drydocks World Apart
Drydocks World has several assets that give them a favourable
market position. Location is vital, and owing to the Gulf’s warm
waters, they can maintain a consistent workstream all year. They
can also draw customers from outside those continents because
they are near the intersection of Asia, Europe, and Africa.
They can be forward-thinking in their approach because of the
setting and the skill sets they have developed over the past 40
years. That has allowed them to continue moving forward with
projects like the expansion of the South Yard and investments
in machinery, technology, and digitalisation to boost efficiency.
This enables Drydocks World to continue concentrating on
efficiency upgrades while upholding the highest standards for
quality and safety.
Prioritising Safety, Quality, And Sustainability In Its Operations
As a member of the DP World family, Drydocks World
implements the ‘Our World, Our Future’ sustainability strategy
to continue to develop sustainable projects in Dubai and uphold
sustainable practices. That approach effectively addresses the
contemporary socioeconomic, environmental, and sustainable
challenges. They are discovering operational efficiencies enabling
them to be sustainable in the industry through automation,
digital transformation, or wiser resource and equipment use.
Drydocks World has a solid commitment to protecting marine
ecosystems. To uphold this commitment, they have developed an
advanced filtration system to help mitigate the damaging effects
of wastewater discharge on the environment. Their wastewater
treatment facility uses an internal filtration system built into each
graving dock trench and has been painstakingly engineered to
process all industrial waste. Correspondingly, they demonstrate
their commitment to sustainable practices and the preservation
of priceless marine environments by facilitating the recycling of
water and oil through this cutting-edge system.
Additionally, they have a ‘Zero Harm’ HSE culture in place.
This initiative promotes zero health, safety, and environmental
harm to protect their workforce and the environment.
Strategic Planning In A Highly Competitive Ship Repair Industry
Currently, the yard spans 200 hectares and has over 3,700
metres of berth space, four dry docks, three wet docks, one dry
and wet basin for small vessel docking and a floating dock. The
largest dock can accommodate the world’s largest ship, enabling
Drydocks World to finish over 300 projects annually and set a
record by managing 42 renovation projects at once.
THE OFFSHORE
SERVICES PROVIDER
Vibha Mehta and Captain Rado Antolovic, CEO
of Drydocks World, discuss marine and offshore
services offered on the yard
DOCKS
>>>
Captain Rado
Antolovic, CEO
of Drydocks
World,
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They stand out in the industry due to
a unique combination of factors. With
Cimolai Technology, they recently
reached an important agreement to supply
four new Level Luffing Jib Cranes. The
new cranes can completely meet the
requirements of their customer’s thanks
to their 50-tonne capacity per unit and an
outreach of up to more than 100 metres.
They also purchased a brand-new tugboat
by the name of JUMEIRA 10. It had a
potent 1800RPM engine with a DAMEN
ASD 2312 Twin Fin design that could
pull up to 65 tonnes of bollards. This
tugboat’s two independent towing winch
drums enable it to handle larger ships in
confined spaces, making it ideal for use at
Drydocks World.
The United Arab Emirates’ advantageous
location places us close to important trade
routes that link us to the rest of the world.
Furthermore, they can work on protracted
projects without interruption because of
Dubai’s well-known economic, political,
and social stability.
Notable Projects And Collaborations
The Hollandse Kust Zuid Beta Platform
and Admarine 657 are significant
projects they want to draw attention
to in 2022. Drydocks World was
contracted to complete production
engineering, procurement, fabrication,
pre-commissioning, commissioning, and
the load out of
the Beta topside
and HVAC system
for the Hollandse
Kust Zuid Beta
Platform. This was
a component of
Drydocks World’s
first offshore high-
voltage substation
project, built in the
Middle East. The
HKZ renewable
energy wind farm
zone comprises
two 700 MW
offshore substations,
the HKZ Alpha
and HKZ Beta
platforms, and four
350 MW offshore
wind farms. The
wind farm zone will
produce enough
renewable electricity with its 1,500 MW
installed capacity to meet the annual needs
of more than two million households.
They were contracted to finish
significant upgrade and modification work
for shallow water drilling on Admarine
657. Fabrication and installation of new
sponsons, a new jacking system with six
new gearboxes, structural reinforcement,
new walkways and platforms, hull and
piping replacements, crane relocation and
outfitting, rescue boat platforms and davit
relocation, relocation of the helideck,
flare booms, mooring and towing
arrangements, overhauling of all drilling
equipment, and other tasks were some of
the tasks that were completed. Over 175
days and 700,000 LTI free person-hours,
about 2000 tonnes of new steelwork,
3 km of pipelines, and 6 km of power
and control cables were
installed.
They recently bade adieu
to the FPSO Firenze, which
departed from their dock
in April and is scheduled to
work in the Baleine Field
off the coast of the Ivory
Coast. The Drydocks team
undertook this extensive
renovation project, which
took only 15 months to
complete and six million
LTI free person-hours by
April 2023.
They also have a
few ongoing projects,
like the FPSO Atlanta
Redeployment, which
will involve converting,
renovating, and extending
the life of the FPSO before
it is deployed offshore
DOCKS
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at Atlanta Field in Brazil’s
Santos Basin. Additionally,
they have the PetrojarlKnarr
FPSO Redeployment for the
Rosebank oil field on the
United Kingdom Continental
Shelf, an FPSO Module
for a unit deployed in the
Mediterranean basin that is in
the final stages of construction,
and the creation of a calm
buoy for the Supsa Oil
Terminal in Baku.
Current Challenges
The main difficulty the industry
has encountered is trying to
handle the increased number
of projects that have come
online since the COVID-19
restrictions were relaxed. They
are committed to embracing
technological advancements
and utilising digital solutions
to advance their operations
to account for this. They are
confident in their ability to
deliver exceptional results,
surpassing industry standards
and exceeding valued
customers’ expectations,
thanks to their recent
technological acquisitions and
ongoing efforts to transform
business digitally.
Despite the difficulties,
since the beginning of 2023,
they have been running at
total capacity owing to a
steady stream of orders and
consistent bookings. So
far, they have sold out yard
occupancy through the end
of August 2023, received
more inquiries extending
later in the year, and received
more than 60 confirmed
repair orders in Q1 of 2023.
Development And Well-Being
Of Their Workforce
Drydocks’ management
views its staff as its
most valuable resource,
prioritising their health
and well-being in all
facets of business strategy
and providing access to
healthcare facilities that
are both employee- and
equity-focused. They invest
significantly in thorough
training programmes to
equip employees with the
abilities and knowledge
required for their
positions. They are providing
opportunities for internal and
external training based on their
trades.
Additionally, they encourage
employees to participate in
pertinent training programmes
and support performance
evaluations in identifying
individual developmental
needs. To create highly
engaging and interactive
learning experiences outside
of the traditional classroom
setting, they have adopted
the Metaverse learning
methodology—the immersive
nature of the metaverse aids in
conceptual understanding.
They also have a robust
performance management
system prioritising regular
feedback and frank discussions.
This enables managers to
continuously give feedback
to workers, highlighting their
strengths and development
areas. With programmes like
the MentorHer initiative, a
professional development
programme created to
support women in advancing
their careers and supporting
employee development,
Drydocks World also
promotes an inclusive culture.
Future Plans
They have consistently
invested in the yard to upgrade
and expand our facilities. They
have invested significantly
in the newest products for
Cranes, Hydro Blasting, and
other equipment to boost our
efficiencies. Following this,
they are also implementing
a digital transformation that
will significantly aid in the
planning and execution of
their Production and Project
Management.
Maintaining an up-to-date
shipyard has made them
the preferred shipyard for
the past forty years and is
a good business idea. To
provide clients and partners
with world-class facilities
for their needs, shipyards
must innovate and invest in
their facilities’ expansion and
modernisation so Drydock
World keeps itself aligned
with the trends to stand tall
amongst its peers.
THE OFFSHORE SERVICES PROVIDER | CAPTAIN RADO ANTOLOVIC
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What products and services does Shell
Marine offer for the maritime industry?
Shell Marine provides integrated marine
solutions that help vessel owners and
operators manage complexity, and
optimise operational efficiency and
reliability, to lower the total cost of
ownership. We do this through a
portfolio of products ranging from engine
oils, lubricants, and hydraulic and gear
system fluids to greases and technical and
digital services. Shell is also a worldwide
supplier of Marine Fuels, including
residual and distillate fuel oil, LNG
(Liquefied natural gas), bio-LNG, and
FAME (fatty acid methyl esters).
Can you provide information about
Shell Marine’s lubricants and their
benefits for marine engines?
Shell Marine offers a range of high-
quality lubricants designed for marine
engines providing several benefits,
including enhanced engine protection,
improved fuel efficiency, and emission
control. Shell Marine’s lubricants
minimise wear, prevent corrosion,
and reduce deposit formation,
extending the engine’s life and
reducing maintenance costs. They also
contribute to lower fuel consumption,
optimising engine performance and
combustion.
Last year’s Shell Alexia 40 XC launch,
a CAT II 40BN cylinder oil, is a great
example. It is approved for use in all
low-speed, two-stroke engines designed
by MAN ES and improves cleanliness
while removing the need to switch back
and forth between 40BN and 100BN
lubricating products.
How does Shell Marine ensure
compliance with industry regulations
and standards?
As engine technology evolves to deliver
even higher efficiencies with very low
to zero-sulphur fuels – following the
International Maritime Organization’s
(IMO) 2020 sulphur cap – fuel suppliers
like Shell will need to develop lubricants
that can cover multiple bases as we
have achieved with the Shell Alexia 40
XC. As mentioned, Shell’s portfolio
encompasses a suite that includes Low
and High Sulphur Fuel Oil, Gas Oil and
LNG. Very Low Sulphur Fuel Oil (VLFO)
with a sulphur content of up to 0.50%S
is designed to enable the fleet to meet its
obligation for IMO 2020.
Looking into the future, there is a clear
role for energy companies to play in
shipping’s decarbonisation. That is why
Shell supports introducing ambitious
targets and market-based measures at the
IMO. However, only some companies
in any sector can reach net zero alone.
This means collaboration is critical for
success.
How does Shell Marine support
sustainable shipping practices? What
is Shell Marine’s approach to optimising
fuel efficiency and reducing emissions
in shipping?
When it comes to fuels, we expect
different ship types or shipping sectors
to transition from today’s fuel oil to a
range of zero-carbon fuels and to use
other fuels in the transition – we’ve
been referring to this approach as the
‘fuel mosaic’. While we focus on the
fuel mosaic, we can start to see the fuel
pathways emerging according to the
engine choices available today: fuel oil,
dual fuel methanol and dual fuel LNG
for deep-sea shipping.
Additionally, existing energy-
efficient technologies could reduce
emissions by up to 25% if used more
THE NICHE SOLUTIONS
PROVIDERS
Giorgio Barabino, Regional Director - Middle East at Shell Marine
Mediterranean, on how they are vital to the marine industry.
SOLUTIONS
LNME
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widely. For example, add Water System
(JAWS) delivers up to 7% emissions
reduction, and air lubrication delivers
up to 8%. Finally, fuel cell technology
under development can improve energy
conversion efficiency to above 60%
and up to 80% if the produced heat is
harnessed. These technologies can be
partnered with lubricants to improve
efficiency further.
How does Shell Marine support
customers in optimising their vessel
performance and reducing operating
costs?
Our digital services provide data
and trends that help optimise engine
maintenance planning, lubricant
consumption and lifting patterns. Once
the product is delivered to the ship, we
monitor the performance and condition of
the ship’s engine through the lubricating
oil, for which we have developed several
solutions.
Ultimately, engine monitoring solutions
support operators with decision-making,
saving money and increasing efficiency.
By providing the ability to identify key
insights and track long-term trends, the
correct engine monitoring application
can work alongside lubricants to ensure
operations are aligned with OEM
recommendations.
Can you provide
examples of successful
partnerships or
collaborations that
Shell Marine has been
involved in?
Collaboration can
enable us to take
action together. For
instance, after months
of constructive
conversations and hard
work, the MEDME
Region (Mediterranean
and Middle East)
secured a critical account
win with the MSC
Cruise fleet. We were
selected as their fleet’s
lubricant and technical
services supplier for 12
months, officially ending
on March 1, 2023.
Additionally, as part of
continued collaboration, Shell will supply
LNG to CMA CGM’s 13,000 twenty-foot
equivalent unit (TEU) vessels in the Port
of Singapore, starting from the second
half of 2023, as part of a multi-year
agreement.
How does Shell Marine ensure the
availability and reliability of its products
and services worldwide?
Regarding reliability, we constantly work
alongside our customers to understand
what they need before leveraging our scale
and expertise to deliver the innovations
that meet these requirements amid a
complex and rapidly changing marine
landscape.
To ensure our products are available
when our clients need them, we’ve
developed Shell Accuport, a digital
solution that calculates ship engine
requirements, analyses what’s left on
board, and matches customer needs with
our inventory.
What digital solutions or technologies
does Shell Marine offer to enhance vessel
operations and maintenance?
Shell is helping its customers navigate
the complexities of the market while
driving operational efficiency, improving
reliability and lowering the total cost of
ownership.
One such solution is Shell LubeAnalyst, a
lubricant condition monitoring solution.
Like a hospital blood test, it helps ensure
ship engines and lubricants are in top
working order by identifying potential oil
or equipment failures before they become
serious.
We also developed Shell LubeMonitor,
a digital tool beyond traditional cylinder
condition monitoring. Combining
onboard testing with lab analysis helps
operators strike and maintain a balance
between cylinder oil costs and wear-
related cylinder maintenance expenses.
Can you provide information about Shell
Marine’s global network and customer
support capabilities?
With over 700 ports spanning 61
countries and a network of more than
170 distributors, Shell Marine has an
extensive global reach. Our strength lies
in our large and flexible supply chain,
supported by four blending plants
(BOMP), thirty logistics and mixing plants
(LOBP), and open market sourcing. We
prioritise quality assurance and safety by
implementing rigorous end-to-end checks
on our lubricants and chemicals to ensure
they are fit for purpose and delivered
safely. Our commitment to compliance
is unwavering, as we maintain robust
monitoring systems to ensure that our
chemical products consistently meet global
and local regulatory standards.
What sets Shell Marine apart from other
competitors in the marine lubricants
industry?
Our comprehensive range of services
allows clients to access an extensive
portfolio of quality-assured fuels,
lubricants and chemicals. Our dedicated
team is also committed to providing
technical support to help clients select
and apply the most appropriate oils
for their vessel engines and auxiliary
equipment.
The marine industry is growing more
complex, and from conversations with
our customers, we know they need
support navigating their route through
it. We leverage our expertise to provide
integrated solutions, helping our
customers optimise their reliability and
efficiency and meet evolving industry
needs and OEM standards.
THE NICHE SOLUTIONS PROVIDERS | GIORGIO BARABINO
Giorgio Barabino, Regional Director - Middle
East at Shell Marine Mediterranean
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I
nternational Marine
& Energy (IME) is
operational between the
maritime and energy
sectors. The primary
business originated in pure
back-to-back bunker trading,
which has grown organically
upstream in the supply chain
and evolved into a reputable
physical supplier of fuel oil
that complied with ISO 8217
standards in the UAE. “Today,
we are fortunate to be a
trusted and reliable partner for
many of our counterparties in
the maritime sector,” says Ali
Fathi, Managing Partner at
International Marie & Energy.
Established over a decade
ago, they have gathered a
wealth of experience across
the marine energy sector.
Like their industry peers,
they have attempted to
contribute positively to the
global shift towards the use
of cleaner fuels as part of
IMO 2020 and the ongoing
effort to decarbonise the
maritime industry. One
of the most significant
international sectors has faced
unprecedented challenges over
the past ten years, including
pressure from IMO 2020, a
global pandemic, and pressure
from general economic cycles
and fluctuations. However,
with each challenge, they
have improved their capacity
to serve this sector – mainly
specialising in supplying
bunkers and lubricants to all
types of maritime vessels or
assets.
Keeping in mind the nature
of the business, several rules
must be adhered to. Having
the appropriate legal and
risk/compliance framework
is essential to protecting the
integrity of any organisation
since, as we all know, the
regulatory field is typically
quite dynamic, and there
is rising scrutiny in both
the marine and energy
sectors. “We recognised
the significance early on,
investing in these fields with
our market ambitions in
mind, and prioritised hiring
experts from blue chip and
global businesses to support
this drive,” adds Ali. “That
trend has continued with the
company’s well-funded legal
and risk teams.”
Their work is generally
specialised and narrow in
scope, with slight substantial
variation. They continue to
put their attention on their
core competencies, which
are the sale and supply of
maritime fuels, but they are
also involved in the global
movement to become more
carbon neutral and are actively
interacting with essential
stakeholders in the industry
to make sure they are well
prepared for the state of the
sector going forward. Ali
shares, “The implementation
of IMO 2020 is an example of
where we have been a trusted
partner to many of our clients
in ensuring compliance with
market regulations whilst
guaranteeing the movement
of their vessels was not
compromised.”
As bunker traders, they are
committed to working with
well-established businesses
operating in reputable ports
with stringent environmental
and safety regulations in place.
“Furthermore, as physical
suppliers, we are fortunate to
operate out of the UAE, one
of the largest global bunkering
hubs, where licensed physical
suppliers impose and adhere
to the highest standards
of environment and safety
regulations,” highlights Ali.
Additionally, they frequently
receive invitations to share
and present their opinions on
various market topics from
top industry publications
and organisations. IME
representatives are often
present on significant industry
panels, including those at
SIBCON (the Singapore
bunkering conference),
the Middle East Bunker
Conference, and Seatrade
Maritime Logistics Middle
East. These panels cover a
wide range of topics, including
risk and risk management,
the legal environment
governing the maritime and
marine fuel industries, human
resource-related issues, and
the eventual shift of the
entire industry to green fuels.
Their experts contributed
to the first-ever industry
guide on the BIMCO bunker
terms as one of the founding
members of the Marine
Fuel Alliance. Ali shares,
“Our female colleagues are
members of WISTA (Women’s
International Shipping and
Trading Association), where
they actively contribute to
increasing inclusivity and
diversity in these often male-
dominated industries – an
initiative we are proud to
support.”
Likewise, they frequently
participate in industry
conferences and events,
allowing their staff members
to network with colleagues,
share knowledge, gain insights
into cutting-edge technologies
and best practices, and invest
in their ongoing professional
development. Access to
workshops, training courses,
and certifications guarantees
that their team members
have the most up-to-date
information and abilities
to succeed in the maritime
industry, which is rapidly
evolving. “IME also maintains
active memberships in relevant
professional associations
and organisations within
the maritime industry.
These associations often
host webinars, forums, and
working groups that focus
on sharing knowledge and
advancements in the field,”
explains Ali.
To find ways to lower
carbon emissions in the
maritime sector, IME is
collaborating closely with
European businesses based on
science. The progress made
thus far is encouraging, even
though these projects are still
in their infancy and cannot
fully meet all fuel demands
at the required supply speed.
“IME remains dedicated to
advancing innovative and
sustainable practices in the
maritime sector, aiming to
significantly reduce carbon
emissions and create a more
environmentally responsible
industry,” concludes Ali.
THE FUEL SUPPLIER
VIBHA MEHTA SPEAKS TO ALI FATHI, MANAGING PARTNER AT
INTERNATIONAL MARINE & ENERGY, TO UNDERSTAND MORE
ABOUT THE COMPANY
BUNKERING
LNME
Page 53
LOGISTICS NEWS ME | AUGUST 2023 | 53
THE FUEL SUPPLIER | ALI FATHI
“THE IMPLEMENTATION OF
IMO 2020 IS AN EXAMPLE
OF WHERE WE HAVE BEEN
A TRUSTED PARTNER TO
MANY OF OUR CLIENTS IN
ENSURING COMPLIANCE
WITH MARKET REGULATIONS
WHILST GUARANTEEING
THE MOVEMENT OF
THEIR VESSELS WAS NOT
COMPROMISED.”
Page 54
Proven Quality
Modul E-Drive
The electric landing gear Modul E-Drive sets new standards
in convenience, workplace safety and efficiency. It is
particularly useful when access to the landing gear is
restricted and when the trailer needs to be coupled or
decoupled frequently.
King Pin 1016
The 3½" King Pin 1016 is the perfect match for the JSK 38.
With its impressive D-Value of 320 kN and its proven highest
quality it provides a safe and reliable connection between
truck and trailer, especially for heavy duty transport on every
road surface.
JSK 38
The JSK 38 is an especially robust heavy duty fifth wheel
coupling with a D value of up to 260 kN and an imposed load
up to 36 t. With it´s well known quality and durability and it´s
shock-absorbing rubber bearing it is perfectly suited for use
on poor road conditions.
www.jostmiddleeast.com
Page 55
Smart Innovations
SKS
The SKS Sensor-Coupling-System allows simply safe coupling.
Using the remote control unit in the cab, the lock can be opened
simply at the push of a button. Three sensors provide optimum
safety when connecting: Two sensors permanently monitor the
connection status, a third sensor displays the correct coupling
height. All information is displayed in the driver’s cab.
DCA WEIGHTMASTER PLUS
The DCA WEIGHTMASTER PLUS is the lightest axle in its class.
The optimised structure of the entire axle reduces weight
by 51 kg in the trio, setting the benchmark in the trailer axle
segment. The DCA X7 is the lightest brake on the market, for
22.5" brake discs. Weight-optimized, high-performance, durable!
King Pin Finder
The JOST King Pin Finder is a fifth wheel with an integrated
camera – a unique assistance system which provides more safety,
efficiency and comfort for the coupling process. A live camera
image in the driver’s cabin gives an ideal perspective on the
coupling situation when driving backwards, making the coupling
process considerably easier.
See you at the
Automechanika in Dubai
2 – 4 October 2023
Page 56
New IVECO T-WAY: high productivity and safety on off-road terrains
With a complete line-up of AWD and PWD versions and the the 16-speed HI-TRONIX automated
gearbox, the IVECO T-WAY features a host of functionalities such as Rocking Mode, Off-road Mode,
Creeping Mode and 4 reverse gears to tackle with ease the toughest off-road conditions. The new
architecture of the EBS system, combined with disc brakes on all wheels, greatly improves the vehicle’s
performance and the driver’s safety in the most demanding applications.
New IVECO S-WAY: high technology and efficiency for on-road missions
The new IVECO S-WAY, with a completely redesigned and reinforced cab, offers a wide choice of
Euro III/V diesel engines, a delivering class-leading power from 360 HP to 560 HP Euro III / 570 HP
Euro V and superior fuel-saving devices, such as anti-idling feature, Ecoswitch, Ecoroll and Smart
Alternator, 12-speed HI-TRONIX automated transmission with the most advanced technology
in its category, electronic clutch and best-in-class torque-to-weight ratio.
Drive the new way.