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F e a t u r e A look into how 2020 will impact Logistics companies O p i n i o n 5 Supply Chain Predictions for 2020 T a l k i n g p o i n t The Future of Airports Connecting trade professionals with industry intelligence January 2020 Logistics News ME explores the latest initiatives taken by the Bahrain Economy Development Board that is making the country as one of the world’s most competitive logistics centres Business Friendly, Bahrain
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Logistics News ME | January 2020 | 3 January 2020 Contents Start 08 | News Features 18 | IKEA 20 | Cover 26 | Feature 36 | Opinion 38 | Freezones 40 | Trucks 42 | Talking Point 44 | Maritime 46 | Supplier News Find us on youtube Subscribe to our YouTube channel to see things like site visits, interviews and much more Contents J a n u a r y 2 0 2 0 R e a d a l l t h e l a t e s t i s s u e s o n I s s u u 18 Website: www.CBNme.com/logistics-news twitter: @logisticsnewsme Facebook: /LogisticsNewsME
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6 | Logistics News ME | January 2020 www.cbnme.com Editor’s Letter January 2020 subscriptions@bncpublishing.net CEO Wissam Younane wissam@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Group Publishing Director Joaquim D›Costa jo@bncpublishing.net +971 50 440 2706 Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818 Editor Kasun Illankoon kasun@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net Marketing Executive Vince Celestial vince@bncpublishing.net Photographer Marouane Al Mandri PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 For all commercial enquiries related to Logistics News ME contact sales@bncpublishing.net All rights reserved © 2015. Opinions expressed are solely those of the contributors. Logistics News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Logistics News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Logistics News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by UPP On the web Keep up to date with all the latest news, features and much more on our website. w w w . c b n m e . c o m / l o g i s t i c s - n e w s S U B S C R I B E Air drones are already beginning to provide solutions to some of the most pressing economic, transport, security, environmental and productivity challenges faced by governments and industry throughout the world, reducing road traffic, easing conges- tion, saving lives through a reduction in accidents and reducing pollution in our cities. As well as speeding up the delivery of large-scale infrastructure projects, drones are expected to reduce the need for some expensive new major transport infrastructure altogether. New exciting applications for air drones are being developed daily. Revolutionary approaches are emerging for freight and passenger transportation, with drones providing a cost-effective and environmentally responsible alternative to traditional methods, relieving the burden on our already stretched urban road networks. Further applications in the agricultural, maritime, construction and energy sectors among others, are already transforming businesses, with virtually all industries and business sectors set to benefit from the Standard-led adoption of rapidly evolving drone technology. A number of recent reports have attempted to forecast the economic impact of air drones globally. For instance, in its report Drones Reporting for Work, Goldman Sachs has estimated that the size of the global drone industry will reach $100 billion by 2020. Most recently, analysts at Barclays estimate that the global commercial drone market will grow tenfold from $4bn in 2018 to $40bn in five years. They believe the use of drones will result in cost savings of some $100bn. These predictions relate solely to air drones, demonstrat- ing that the economic benefits offered by drone technology are vast, with growth set to accelerate across surface, underwater, air & space, as well as emerging hybrid drone applications. Kasun Illankoon Editor, Logistics News Middle East A note from the editor K a s u n I l l a n k o o n
CEO, ESAD MANPOWER SERVICES AMER AL KHUSHAIL ENTERPRISE AGILITY AWARDS 2019 OF THE YEAR FASTEST GROWTH AWARD
8 | Logistics News ME | January 2020 www.cbnme.com Regional News Health & Safety Bridgestone Middle East and Africa has recently concluded its new CSR campaign aimed at long- distance truck drivers in the UAE. Running from the 8th to the 16th of December, the campaign titled ‘Eyes on Road’ offered truck drivers free health checks at select truck stops across Sharjah, Dubai and Abu Dhabi. The campaign was organized in collaboration with Police authorities across Sharjah, Dubai and Abu Dhabi in addition to Abu Dhabi Ports. Bridgestone’s partners Al Masaood and Al Serkal were also part of the activation. Through this campaign Bridgestone highlighted the importance of health and safety for truck drivers given the long hours they put in on the roads. Improper health conditions could lead to a lack of concentration which in turn can have catastrophic consequences for truck drivers, motorists and passing pedestrians. As part of the campaign, truck drivers were also treated to some well-deserved rest and recreation, including games and refreshments for them to unwind. “Truck drivers play an important role in our lives, they put in long hours to deliver goods and commodities that we require. It can be an extremely taxing job which can have serious health implications. This campaign is part of our efforts Bridgestone promotes health & safety for UAE truck drivers which we aim to solidify our position on the importance of safe road usage, and reaffirm our commitment to clients and customers to provide them with products, services, and the needed support to help keep them safe on the road.” Bridgestone offers a wide range of high performance commercial and specialty- tires, which are designed to withstand excessive heat and long-distance driving, bolstering safety for commercial vehicle drivers. to ensure that truck drivers are aware of their health condition and take adequate preventative measure to ensure their own well-being if necessary. Bridgestone has always been an advocate for health and safety – a value that is reflected in the quality of our products, which are amongst the safest on the market,” said Stefano Sanchini, Regional Managing Director at Bridgestone. Salah Adib, General Manager of Al Masaood’s Tyres, Batteries, and Accessories Division, commented: “We at Al Masaood Tyres, Batteries, and Accessories are pleased to be collaborating with our partners at Bridgestone, Abu Dhabi Ports, and Abu Dhabi Police in this CSR campaign. We strongly believe that such initiatives are important tools to promote safety on the road, which in turn can saves lives, reduce accident rates, and promote a healthier and happier society. Al Masaood TBA has a legacy of road safety campaigns through A n u p d a t e f r o m a r o u n d t h e r e g i o n Regional News
Logistics News ME | January 2020 | 9 January 2020 Ports After seven record years of operational growth, Abu Dhabi Ports flagship Khalifa Port is set for further expansion, say company executives. Of particular note is the investment of AED 2.2Bn in the development of South Quay and Khalifa Port Logistics, as well as AED 1.6Bn expansion at Abu Dhabi Terminals. The South Quay development which will be completed by Q1 of 2021 is composed of a three km quay- wall with 18.5 metres along- side draft for general cargo, ro-ro and bulk usage. It will also include eight berths, and 1.3Mn square metres of Abu Dhabi Ports announces AED 4bn expansion projects at Khalifa Port terminal yard. The Khalifa Logistics expansion, for multi-purpose usage, will encompass a 3.1km quay wall with 8 metre draft, 15 berths and land plots, which can be tailored to individual customers. Phase 1 of the South Quay expansion will be completed by Q4 2020, while Phase 2 and the Khalifa Logistics expansion will be completed by Q1 2021. These two expansion projects will create more than 2,800 direct and indirect jobs and contribute more than AED 3.2Bn to the emirate’s GDP by 2025. The expansion at ADT will include an extension of the quay from 1,400 to 2,265 metres and an addition of 10 new ship-to-shore quay cranes — effectively doubling ADT’s handling capacity from 2.5Mn to 5Mn TEUs. With this capacity expansion project in place, Khalifa Port will see its container handling capacity jump from current 5Mn to 7.5Mn TEUs, which sets it firmly on the path towards its 9Mn TEU milestone over the next five years. Furthermore, after only one year, CSP Abu Dhabi Terminal has now shifted from its trial operation phase to being commercially fully operational. The deep-water, semi- automated container terminal includes the largest Container Freight Station in the Middle East and positions Abu Dhabi as the regional base for COSCO’s global network of 37 ports. Capt. Mohamed Juma Al Shamisi, Group CEO of Abu Dhabi Ports, said: “As global trade volumes increase over time, the world’s leading port operators must think decades ahead in their planning and execution. Through strategic collaboration with partners and top industry players, such as ADT, MSC, China’s CSP, and Autoterminal Barcelona, Khalifa Port is developing in a sustainable manner and has become one of the fastest growing ports in the world.
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12 | Logistics News ME | January 2020 www.cbnme.com Regional News Expo 2020 Partnerships UPS delivers Expo 2020 Dubai’s largest shipment Continental extends partnership with Emirates for Universal Tyres to 2023 UPS announced today the completion of a series of multi-modal deliveries for Expo 2020 Dubai’s iconic entry portals in the run-up to next year’s official opening. UPS, the Official Logistics Partner of Expo 2020 Dubai, choreographed multiple shipments from Germany through Belgium’s Port of Antwerp and into Dubai’s major commercial port in Jebel Ali. “These extraordinary entry portals will welcome 25 million visits — equal to the population of Australia — and, likewise the logistics required for these shipments, is nothing short of monumental,” said Nando Cesarone, president, UPS International. “Whether it’s delivering a 21 meter entry way or a small package for an international visitor at the Expo 2020 site, our world- class logistics are made possible by a dedicated team that will grow to up to 600 for this global undertaking.” Continental, the premium German tyre and automotive technology company, has reappointed Emirates for Universal Tyres (EUT) as the sole distributor for Continental in the UAE, extending the partnership until 31st December 2023. The agreement highlights Continental’s expanding commitment to the region and will see the partnership through to its 15th year. The new contract was inked at a signing ceremony in Abu Dhabi by Karel Kucera, Managing Director of Continental Middle East and Khalifa Abdulla Al Masaood, Director of the Abdulla Al Masaood & Sons Group, the parent company of EUT. The ceremony was also attended by Jon Ander Garcia, Regional Manager for Middle East & Africa and Shaun Smith, General Manager at Emirates for Universal Tyres. The signing of the new agreement is the latest in a series of developments that have seen the German brand Expo 2020 chose UPS as Official Logistics Partner for an event that is billed as the “world’s greatest show” by organizers, on a site that is roughly the size of more than 600 soccer fields, with 192 countries confirmed to participate. To support Expo 2020, UPS draws on its experience as the logistics sponsor of the 2012 Olympic Games in London and the 2008 Olympic Games in Beijing. “Driving by or flying over the Expo 2020 site, you can’t help but notice one of the world’s most sophisticated, synchronized peacetime logistics operations in full swing,” said Alan Williams, UPS’s Expo 2020 Vice President of Operations. “When something as monumental in size, proportion and importance as this is needed to be moved from around the world to Dubai, Expo organizers trusted UPS. We’re excited to deliver!” significantly enhance its support for customers across the UAE and Middle East. Earlier this year Continental opened a new parts warehouse in Jebel Ali, allowing smoother supply of passenger car and commercial tyres to retailers. This followed last year’s successful launch of the new Generation 6 range of tyres, which have been developed specifically for the region. Karel Kucera, Managing Director of Continental Middle East, said: “We are very pleased to be continuing our agreement with EUT who have been a key partner of ours in the Middle East now for the last 10 years. They have been with us at key moments during our growth over those years. Most recently that includes things such as our groundbreaking sponsorship of the 2019 AFC Asian Cup in the UAE as well as the development and launch of the regionally- tailored Generation 6 tyre range. I am confident that we will continue doing great things together in the UAE.”
Logistics News ME | January 2020 | 13 January 2020 H.E. Dr. Abdullah Belhaif Al Nuaimi, the UAE Min- ister of Infrastructure De- velopment and Chairman of Federal Transport Au- thority- Land & Maritime (FTA) led the opening of the ‘Regional Workshop on Maritime Agreements for Civil Liabilities and Com- pensations’ organized by the FTA in cooperation with the International Maritime Organization (IMO). Representatives of sev- en Arab countries and 20 officials of legal agencies involved in marine envi- ronmental pollution in the UAE are participating in the workshop. During the gathering, the at- tendees discussed the dif- ferent aspects of marine accidents, including dam- ages and financial com- pensations, in line with the country’s efforts to build a safe and efficient maritime transport and establish an accessible maritime industry. Dr. Al Nuaimi said: “We will build stronger ties with various international organizations to advance the maritime transport sector, highlight the im- portant issues of marine pollution and maritime safety, ensure fair financial compensation during ma- rine accidents, and effec- tively respond to maritime emergencies. In the UAE, we conform to the inter- national standards and provisions of the Interna- tional Convention on Civil Liability for Oil Pollution Damage of 1969, the Pro- tocol on Civil Liability of 1992, and the Fund Agree- ment of 1992. Through the workshop, we aim to take part in the formulation of practices and policies re- lated to ship-based marine pollution and marine acci- dents to guarantee mari- time safety.” IMO experts and consul- tants have been invited to provide their exper- tise during the workshop, which focuses on the implementation of the International Conven- tion on Civil Liability for Oil Pollution Damage of 1969, the Protocol on the Civil Liability Agreement of 1992, and the Fund Agreement of 1992. Other topics of discussions were liability agreement, ma- rine claims, the shipwreck agreement, shipowners’ liabilities in case of marine claims, and the interna- tional agreements on ship fuel and transport of dan- gerous materials. FTA collaborates with IMO in highlighting liabilities and compensations in marine accidents
14 | Logistics News ME | January 2020 www.cbnme.com Regional News January 2020 Shipping Contracts Tristar Adds LNG Tanker to its Fleet GCANS extends Air Traffic Control Services contract with Serco Middle East Tristar Group announced the recent delivery of the Liquefied Natural Gas (LNG) Tanker, Tristar Ruby to its shipping fleet. Formerly known as the British Ruby, the tanker will be the first LNG vessel to be added to the Tristar fleet of 30 ocean-going tankers. The Tristar Ruby will be on long-term time charter with BP Shipping. The vessel was built by Hyundai Heavy Industries in 2008 and has a cargo carriage capacity of 155,000 cubic metres. She has been chartered by BP Shipping since delivery Building on the success of its long-term partnership with the Ministry of Transport, international public services company, Serco Middle East has announced the awarding of an extension of its Air Traffic Control Services following an eight year tenure. Over 50 Serco employees currently provide support on the ground for the General Company for Air Navigation Services (GCANS) at Baghdad Airport, with the company providing operational Air Traffic Control staff and instructors as well as key advisors in AIS, CNS training and management. As part of the partnership, Serco will continue to provide operational support, On‐the‐Job Training Instruction (OJTI) including the certification training and trades worldwide. She will be technically managed by Wilhelmsen Ship Management and commercially operated by Tristar. Eugene Mayne, Group CEO of OJTIs and Examiner duties in the areas of Area, Approach and Tower Control. Serco’s remit also includes management mentorship programmes in Safety, Quality Assurance and ATC Training along with management of Tristar, said: “As a group, we are extremely excited with this new opportunity to expand our presence into LNG shipping and look forward to strengthening and growing this new relationship support to all areas of Air Navigation Services. The contract was signed following a visit by CEO of Serco Middle East, Phil Malem who met with stakeholders and staff from Serco. Commenting on the extension, Malem said: “We with BP with a strong commitment to safety in operations and high standards of service and excellence.” Tristar is a global integrated energy logistics business, head-quartered in Dubai, which offers end to end fuel logistics solutions to blue-chip clients including international and national oil companies and international NGOs. Its integrated energy logistics platform spans road and maritime transportation, specialized warehousing, fuel farms, commercial aviation refueling and remote fuel supply operations. are honoured to have been awarded with an extension of our partnership with the General Company for Air Navigation Services (GCANS) to deliver the best possible air traffic services and highest standard of aviation training to support Iraq’s aviation sector.
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16 | Logistics News ME | January 2020 www.cbnme.com Quote Awards Almajdouie Logistics wins the Frost & Sullivan KSA Logistics Service Provider Company of the Year Award Almajdouie Logistics has won the Frost & Sullivan KSA Logistics Service Provider Company of the Year Award for the fourth year in a row. Frost & Sullivan Global President and Managing Partner, Anoop Zutish presented the award to Almajdouie Logistics Deputy CEO, Mohammed Ali Almajdouie at the 2019 Middle East Best Practices Awards Banquet Mr. Almajdouie said: “Winning this prestigious award for four consecutive years is a great honour. I would like to thank all our stakeholders and employees for their hard work and dedication, without which this achievement would not have been possible. In the past year, we have launched a range of innovative new services with our customers’ evolving requirements in mind, and we look forward to building on our achievements in 2019 and beyond.” Mr. Almajdouie added: “This recognition reflects the combined efforts of our entire team, the diversity of our services, and inspires us to work even harder to surpass our high standards. We appreciate the efforts of Frost & Sullivan for conducting these awards, which help the entire logistics industry to grow by recognising quality and setting a benchmark for New investment trends in the airline industry relies heavily on the use of modern technology to upgrade air transport services, ensure the comfort of passengers and expand airline operations by reaching new destinations” H.E Saif Mohammed Al Suwaidi, Director- General of the GCAA Top 5 online FTA collaborates with IMO in highlighting liabilities and compensations in marine accidents GCANS extends Air Traffic Control Services contract with Serco Abu Dhabi Ports announces AED 4Bn expansion projects at Khalifa Port Dubai Airports bans single use plastics starting in 2020 ENOC Group launches ENOC Link 1 2 3 4 5 Regional News January 2020
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18 | Logistics News ME | January 2020 www.cbnme.com IKEA If you saw the pile up of cars on Sheikh Zayed Road going towards Abu Dhabi and wondered where the traffic was headed to, then you have witnessed the calm before the storm. The larg- est IKEA store of Dubai and the third full sized store in the UAE opened its doors today for customers in Jebel Ali. Targeted at nearby communities such as Jebel Ali, Al Furjan, Dubai Marina and surrounding communities, IKEA aims to capture a new growth corridor and come closer to their vision of creating a better everyday life for the many people. Based in Al Futtaim’s newest Mall develop- ment, Festival Plaza, in the South of Dubai, which opened on the same day, the store is spread across 35,500 square meters including Grand IKEA Largest IKEA Store in Dubai Now Open in Jebel Ali. New store includes home planning projectors, self-service food ordering, a living wall and much more a 5,000 square meters training area for IKEA employees and is also home to the World’s Tallest IKEA Navigation Tower. The store was opened in the presence of Omar Al Futtaim, Vice Chairman Al-Futtaim Jon Abrahamsson, CEO of Inter IKEA as well as Carl Morner, Deputy Head of Mission – Em- bassy of Sweden and selected VIP guests and customers who queued up to witness the opening and be among the first to enter the new store. Vinod Jayan, Managing Director for IKEA UAE, Egypt and Oman said, “At IKEA we are committed to creating a positive impact on peo- ple, society and the planet by making sustain- able living affordable, attractive and accessible. For many people in the UAE, building a home is one of the key factors to building their life here so our commitment with our new store is to make that an enjoyable experience for all and to be more accessible in the significant area of Dubai South and to nearby commuters.” “IKEA Jebel Ali is just not another store opening in the UAE. We promise our custom- ers double the store experience by bringing top class solutions and customer experience to the region,” he concluded. The complete home setup in the new store will provide customers with additional small space living solutions. One such home is set with smart home solutions to show customers how they can easily make the transition to smart living. Throughout the main showroom, digital Jon Abrahamsson, CEO of Inter IKEA, Carl Morner, Deputy Head of Mission, Sweden, Omar Al Futtaim, Vice Chairman Al-Futtaim, and Vinod Jayan, Managing Director for IKEA UAE, Egypt
Logistics News ME | January 2020 | 19 January 2020 famous Meatballs and Salmon, the restaurant will also be installing a tandoori oven to cater to the local needs. Self-ordering terminals and self- service kiosks at IKEA Bistro will be installed to improve service, speed and customer satisfaction. The newest attraction of the store is the all new bakery which will offer customers a true flavour of Sweden through its freshly baked bread and pastries available at affordable pric- es. With food at the heart of people’s every- day life and a strong contributor to the IKEA brand, IKEA promises to offer a modern taste of Sweden in its new store and bring custom- ers closer to the Swedish traditions. The range consists of some Swedish classics and other traditional baked goods such as rye bread, cin- signage and projector solutions will provide customers with information about the range of products available as well as guide them through the store and enhance their shopping experience. Approximately 16 home planning wall projectors are built across the store that will allow customers to be able to easily visual- ize products in their home. The store will also feature a brand new Cus- tomer Planning Studio for customers with ex- tensive kitchen and bathroom requirements making planning easier and improving the overall shopping experience. Along with that, the lighting department will have an exclusive area for all smart home lighting products for ease in selection. The store will also have more inspiring room settings that are tailored specifi- cally for the many different tastes of Dubai’s 200+ nationalities and backgrounds. The new store is built with sustainability at its core and contributes to the brand’s global efforts in this direction. From solar panels that will enable the store to receive more than 20% of its energy from the sun, to efficient AC units and motion- based lighting that will help save energy to power over 400 homes for an entire year, IKEA will also recycle 90% of their operational waste annually to reach a target of using only renewable or recycled materials for their products by 2030. The IKEA Restaurant, that is now accessible directly from the mall has a capacity of 550 seats – indoor and outdoor. In addition to the ever-
20 | Logistics News ME | January 2020 www.cbnme.com Drone Safety The world’s first ISO approved drone stand- ards have been announced by the Interna- tional Organisation for Standardisation (ISO) following a 12-month period of con- sultation with drone professionals, academ- ics, businesses and the general public. The final publication of these new inter- national safety and quality Standards for Unmanned Aircraft Systems (UAS) are set to have a massive impact on the future growth of the drone industry throughout the world, and, are the product of several years of co- operation and rigorous interrogation from all sectors of society. This important first step is part of a wid- er deliverable by ISO which is expected to trigger rapid acceleration in the use of air drones by organisations keen to reap the rewards of this transformative technology, against a background of reassurance on safe- ty and security within a new framework of approved regulatory compliance. The announcement by ISO represents enormous progress in the standardisation of the global drone industry and is of particular significance in addressing the operational re- quirements of the more recognised and preva- lent air drones, also known as UAS. The new Standards include protocols on Quality, Safe- ty, Security and overall ‘etiquette’ for the op- eration of commercial air drones, which will help shape future regulation and legislation. Air safety A key attribute of the ISO Standards an- nounced today is their focus on air safety, which is at the forefront of public attention in connection with airports and other sensitive locations. The new Standards promotes an ‘etiquette’ for drone use that reinforces com- pliance towards no-fly zones, local regulation, flight log protocols, maintenance, training and flight planning documentation. Social respon- sibility is also at the heart of the Standards, which strengthens the responsible use of a technology that aims to improve and not dis- rupt everyday life. The effectiveness of the Standards in improving air safety will be fur- ther strengthened by the continuing rapid de- velopment of geo-fencing and counter-drone technology, providing frontline protection against ‘rogue’ drone operators. Privacy and data protection The Standards also seek to address pub- lic concerns surrounding privacy and data protection, demanding that opera- tors must have appropriate systems to handle data alongside communications and control planning when flying. The hardware and software of all related op- erating equipment must also be kept up to date. Significantly, the fail-safe of human intervention is required for all drone flights, including autonomous op- erations, ensuring that drone operators are held accountable. Impact on the economy A number of recent reports have at- tempted to forecast the economic impact of air drones globally. For instance, in its report Drones Reporting for Work, Gold- man Sachs has estimated that the size of the global drone industry will reach $100 billion by 2020. Most recently, analysts at Barclays estimate that the global commer- cial drone market will grow tenfold from $4bn in 2018 to $40bn in five years. Report January 2020
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Cover Story Business Friendly, Bahrain 22 | Logistics News ME | December 2019 www.cbnme.com strengths position several Gulf countries near the top of the index of 50 nations, a direct result of a wider strategy to help diversify the Kingdom’s economy away from hydrocarbons and respond to the demands of our globalised, interconnected world. The UAE and Saudi Arabia both ranked in the top 20, and Bahrain climbed six places to rank 16th. The country’s ranking was enhanced by strong investments in transport and logistics infrastructure, steady progress in streamlining regulation and its stra- tegic development of digital capabilities. These factors have enabled the region to take advantage of the global logistics boom fuelled by the global growth of e-commerce as economies expand and demand patterns change. GDP growth is set to expand across the region – the World Bank expects GCC Global Logistics Boom Visitors to Bahrain are often awestruck by the third-century Qalat Al Bahrain fortress on the island’s northern coast. This archaeological treasure, dating back to 2300BC, demonstrates the depth of the island’s history – but also testi- fies to the region’s importance in the evolution and development of the ancient Silk Road. The GCC was a key stop on ancient trade routes that connected China and India with the rest of West Asia, as well as beyond to East Af- rica and Europe. In recent years the region has once again established itself as one of the world’s most competitive logistics centre. According to a recent 2019 Agility Emerging Markets Logistics Index report, GCC nations have climbed up the rankings significantly. Business-friendly conditions and core Logistics News ME explores the latest initiatives taken by the Bahrain Economy Development Board that is making the country as one of the world’s most competitive logistics centre The Bahrain Economic Development Board (EDB) is an investment promotion agency with overall responsibility for attracting investment into the Kingdom, supporting initiatives that enhance the investment climate and creating employment opportunities for the domestic market. The EDB works with the government and both current and prospective investors to en- sure that Bahrain’s investment climate is attrac- tive, to communicate the key strengths, and to identify where opportunities exist for further economic growth through investment. The EDB focuses on several economic sec- tors that capitalise on Bahrain’s competitive advantages. One of these include boosting the logistics sector in the country. Here’s why.
Logistics News ME | January 2020 | 23 January 2020 economies to expand by 2.7 per cent by 2020, up from negative 0.3 per cent in 2017. Mean- while trading partners such as India and Ethio- pia expanded by 7.3 per cent and 9.6 per cent respectively with robust consumption predict- ed, and consequently more demand for goods and services. These levels of growth are expected to raise consumption and modify demand routes in both consumer and industrial markets. Mordor In- telligence values the GCC e-commerce market to have quadrupled to an estimated $20 billion in the five years to 2020 – as warranted by the Gulf’s high disposable income coupled with strong internet penetration and deep social me- dia reach. In concert, India’s logistics industry is expected to have posted a growth CAGR of 12.9 per cent over the last three years, according to data from research firm Crisil. Taken together, these two data sets alone in- dicate the potential of the GCC markets as a vital transshipment node for 2.1 billion people in the Middle East, North Africa and South Asia. With reforms slower in many target mar- kets, Gulf nations have built infrastructure capacity and strengthened their operational capabilities in breakbulk, port facilities, ware- housing and transportation. They are now aug- menting that competence with state-of-the-art digital solutions. The Khalifa Bin Salman Port and its Bah- rain Logistics Zone, where annual tonnage has increased 10.9 per cent over the last dec- ade, already functions as a principal provider of goods to Saudi Arabia and Iran the wider Middle East. Now the nation is improving its systems and procedures to ease the transit of goods and services. Bahrain Customs Affairs is modernising various eCustoms initiatives to improve procedures and increase pre-clearance capabilities. Bahrain is already the most cost- effective logistics hub in the region, with other Gulf countries being 7 to 8 per cent higher in set up cost and 61 to 75 per cent higher in op- erating cost according to KMPG Cost of Do- ing Business Report. As one of the world’s first countries to roll out a 5G telecoms infrastruc- ture, it will present a compelling case for supe- riority in logistics infrastructure. Similar moves to varying degrees are being undertaken by the UAE, Saudi Arabia and other countries in the Gulf. Coupled with in- tra-network expansion such as the $250-billion GCC Railway, these strategic developments
24 | Logistics News ME | January 2020 www.cbnme.com Cover Story will ensure the region remains a global supply chain centre in the years to come – as it was thousands of years ago. 5G Connectivity and Smart Ports In June 2019, Bahrain rolled out their 5G net- works, one of the first countries globally to provide commercial 5G services All of the regulatory hurdles to full 5G imple- mentation have been resolved and mobile opera- tors in the Kingdom have already begun rolling out the necessary network infrastructure. This positions Bahrain as one of the globe’s leading 5G-ready countries and increases its attractiveness as a destination for companies trialing next-generation technologies such as autonomous vehicles and virtual/augmented reality products as the Kingdom continues to encourage investment in world-class telecom- munications infrastructure and services. These products and services will also be ably sup- ported by the National Broadband Network (NBN) which will offer ubiquitous high-speed fibre-based products to operators and consum- ers throughout the Kingdom. Successful commercial trials for 5G tech- nology in the Kingdom of Bahrain were held in June 2018 and all the operators are ready to provide commercial 5G services as the compatible consumer handsets become more available. The products and services will be in line with the 3GPP standards issued in 2018 and will predominantly utilise bandwidth in the C-Band spectrum (3GHz) and will allow Bahraini companies to tap into the global 5G services market, which is anticipated to grow from an estimated 60 billion USD in 2020 to an estimated 125 billion USD in 2025. 5G technology will also enable ports in Bah- rain to be more efficient and productive enabling container transfer efficiency with automated, in- telligent solutions, doing away with a dependence on human resources operating container cranes under harsh working environments. Also, one operator will be able to handle mul- tiple gantry cranes while working in a comfort- able central control room, 5G leader Huawei said in a white paper on the subject. In the near future, the technology can be leveraged for mul- tiple applications, such as autonomous driving of automated guided vehicles and Intelligent Guided Vehicle video management in port. This is hugely beneficial as 90 per cent of global trade relies on maritime transportation, accord- ing to industry statistics. Smart ports are seen as a game-changer for the maritime trade and the wider logistics business, boosting trade expansion through operational efficiencies such as automated transaction processing, faster cargo turnaround times, improved staff safety and a reduced carbon footprint. These attributes will stand Gulf nations in good stead as they revive their ancient role as major transit points at the centre of global trade on the new 65-nation Silk Road. Digital Transformation Furthermore, countries in the GCC recog- nise that digitalisation also represents a major route towards achieving the goal of economic diversification away from hydrocarbons. Ac- cordingly, they have embraced the potential benefits of digital transformation with ambi- tious plans and strategies. Bahrain, for example, is actively augment- ing its infrastructure to enhance its strengths as a digital economy, with a wide range of organisations within the country having em- braced digital transformation. As one of the first countries to roll out 5G technology, the
Logistics News ME | January 2020 | 25 January 2020 kingdom leads the rest of the GCC in ICT readiness, according to World Economic Fo- rum rankings, and leads the entire MENA region in terms of ICT development, accord- ing to the International Telecommunication Union (ITU). International organisations have responded to these measures by launching new business units in the GCC. Amazon and Microsoft opened public cloud data centres in the region in 2019, with Amazon Web Services launch- ing its first ever Middle East ‘Region’ in Bah- rain. Huawei, a global 5G leader, opened a Dubai office in 2016 and has its regional headquarters in Bahrain. Multi-enterprise software company Infor has been moving from strength to strength after acquiring Middle East channel partner Accentia in 2017: in July, it announced it was helping Al Jazira, a Bahraini retailer and fast- moving consumer goods (FMCG) distributor, to automate its warehouse, while Mumtalakat subsidiary Mazar has tasked it with unifying and integrating the management of govern- ment assets. Infor’s new wins, in particular, demonstrate just how quickly the region has embraced industrial digitisation. As technology begins to show up at every stage of the value chain, one-size-fits-all solu- tions are increasingly less likely to work for different kinds of industries. The traditional monolithic approach to enterprise software in the GCC is fast giving way to industrial digiti- sation. Companies will, therefore, need to im- plement bespoke, industry-specific enterprise software programs with precisely calibrated ap- proaches to be able to move to the next stage of industry 4.0. Entrepreneur Advantage Start-up activity has been booming across the Gulf, as local and foreign entrepreneurs capitalise on a highly connected base of young consumers with high disposable incomes to launch products and services that meet the re- gion’s unique needs. Opportunities are only going to increase across the Gulf and particu- larly in Saudi Arabia as the Kingdom opens its doors to new business. As a principal import gateway to Saudi Ara- bia, Bahrain’s Khalifa Bin Salman Port (KBSP) is set to expand its already significant benefits for companies operating within its free zone. The port offers a range of value-added services to entrepreneurs in the manufacturing and lo- gistics sector. In addition to its excellent capacity, effi- cient operations and market-leading turna- round times, operators using the port can expect a mere 30-minute journey to the King Fahd Causeway with Saudi Arabia and a short 10 minute-drive from the seaport to airport. Work is now underway on a second causeway – the King Hamad Causeway – that will run parallel to the King Fahad Causeway and will carry passenger and freight trains as well as vehicles. Not only does Bahrain offer 100% foreign ownership for entrepreneurs, but with the lowest setup and operating costs in the GCC, companies save 30-50% com- pared to neighbouring countries. Already, the Bahrain Logistics Zone services third-party logistics and freight forwarding ser- vices; general and specialised storage and dis- tribution activities in the re-export business; and value-added logistics services such as com- ponent assembly, packing and packaging, label- ling, testing and repair, mixing, weighing and filling, and other light manufacturing activities.
26 | Logistics News ME | January 2020 www.cbnme.com Feature Logistics News ME caught up with industry leaders to see what their vision is for 2020 and how Expo 2020 Dubai is boosting their confidence for the year Vision 20 20
Logistics News ME | January 2020 | 27 January 2020 Agility Albert Asool, CEO, Agility GIL Dubai Overall 2019 Performance Difficult market conditions throughout 2019 have severely affected the logistics sector as a whole. However, within our Dubai business, we have witnessed an increase in business oppor- tunities across a number of industry verticals, which have helped us offset these challenges. Particularly due to the growth in manufactur- ing in the region, which has led to an increase in demand for regional logistics hubs. As a re- sult, Agility has benefitted from growth within the retail and FMCG sectors. Furthermore, our 2019 business has been favourably impacted by a shift in customers becoming more discerning and increasingly looking for logistics providers with scale and resources to offer full end-to-end logistics solutions. Agility GIL also continued to move forward in 2019 with its digitization agenda to improve operational efficiency and drive a better cus- tomer experience. Our performance in 2019 allows us to enter 2020 strong with a dynamic approach towards achieving our goals. From a global perspec- tive, we have invested $18 million in green supply chain technologies so far through our corporate venture arm Agility Ventures and we stay committed to our ambitious environ- mental strategy. We always strive to offer our customers advanced smart technologies, drive efficiencies, deepen access to services, and open entirely new markets with new ways of doing business. Expo 2020 Boost The logistics industry in its entirety is benefit- ing from the investments in infrastructure pro- jects related to Expo 2020 and the same applies to Agility. Mobility is one of the key pillars of Expo 2020. We see Expo 2020 as a great opportu- nity to connect people from across the world, goods and innovations unlocking a great po- tential for the community we live and operate in. The Logistics sector is a major contributor to the UAE economy and with the economic transformation momentum we are experienc- ing we expect Dubai to strengthen its position as a global logistics hub. We see Dubai Expo 2020 as a platform that will help us exchange ideas and envisage the future of logistics; on our end we are constantly transforming our business to be more efficient, accelerating val- ue creation through digital connectivity and remaining committed to social and environ- mental sustainability. Plans for 2020 Agility is on track to integrating sustainabil- ity into the heart of our business. We have identified and prioritized activities that ad- dress our direct environmental and social im- pact and explore opportunities where we can make a difference. We continue to invest in technology-driven change and seek to be the digital leaders in our industry. Our Agility Ventures team is partnering with innovative start-ups that are re-shaping the supply chain in areas ranging from green technologies to e-commerce. We are also accelerating in-house development, ac- quisitions, and partnerships to grow our digital logistics platform, Shipa. We believe this is the key to differentiating Agility and positioning us for future growth.
28 | Logistics News ME | January 2020 www.cbnme.com January 2020 Feature Dubai Industrial City Saud Abu Al-Shawareb, Managing Director of Dubai Industrial City Strong Growth The growth of Dubai Industrial City over the years speaks for itself. It was established in 2004, and now it has attracted over 750 play- ers in the light and medium manufacturing and logistics sectors. We currently host over 280 factories operational and under construction in sector-specific zones, including major local and multinational organisations such as Unilever, Patchi, Almarai Group, NMC Trading, Asmak, Gulf Eternit and Standard Carpet. Dubai Industrial City is a driver of the devel- opment and expansion of an advanced indus- trial sector in the United Arab Emirates and the wider region. Our hub contributes to the Emir- ate’s diversified economic growth and job crea- tion through enhancing the ease of doing busi- ness, providing state-of-the-art infrastructure, encouraging modern and sustainable practices. 2019 also marked the opening of our first community retail mall to service the 42,000 workers who live and work in our community. Dubai Industrial City attracted till last year AED8.4 billion in indirect investment. Third of the growth we had in 2018 came from existing partners, a testimony to the supportive relation- ship-based approach we believe in. Expo 2020 Boost Expo 2020 will answer global calls for opti- mism, and future prospects, according to Dubai Chamber of Commerce and Industry, Expo 2020 will aid the local construction sector for a further two years. Expo plans to reuse, recycle and repurpose waste tied in with the country’s commitment to a green economy, keeping with the UAE’s cur- rent development of a long-term waste strategy. At Dubai Industrial City, we are working towards driving the city’s transformation towards a suc- cessful model of the new green economy and in accelerating the development of an advanced industrial sector in the UAE, we welcomed Envi- roserve’s specialized recycling plant within Dubai Industrial City’s premises, earlier this year. 2020 Plans At Dubai Industrial City, we are continuously investing in our infrastructure and enhancing our connectivity, as we anticipate an increase in the number of operational factories over the coming months. To date, we invested AED4.3 billion in mod- ernising our infrastructure. In the past two years, Dubai Industrial City has expanded its 140-km road network in order to improve accessibility and connectivity for business partners and in an- ticipation of the projected growth of the indus- trial sector in line with the national strategy. Food security- In support of the national food security strategy, we are focusing on at- tracting and enabling the success of more food production facilities and manufacturers and anticipate several innovative facilities to become operational in 2020, including a large scale vertical farm by Badia Farms that we re- cently announced. Sustainability – We see more and more facto- ries, new and operational in our business com- munity, adopting environmentally friendly prac- tices such as relying on renewable energy. We see the shift to green sustainable manufacturing happening steadily.
BATTERY CHARGING COLD STORAGE OPEN YARD BULK & RACK TEMPERATURE CONTROL CHEMICAL (TEMPERATURE CONTROLLED) (DG & NON-DG) INDU MARITIME & LOGISTICS JAFZA, United Arab Emirates Telephone: +9714 - 8860141 Fax: +9714-8860142 Email: info@indulogistics.com CONTACT US 1 MILLION SQ FT OF WAREHOUSING SPACE
30 | Logistics News ME | January 2020 www.cbnme.com Feature DHL Geoff Walsh, UAE Country Manager, DHL Express Overall performance in 2019 This year has been tremendous for our op- erations in the MENA region, especially in the UAE where we opened our new state of the art logistics facility at Dubai World Central (DWC). The new import and export gateway and service center, located at the Logistics Dis- trict at DWC, will support the rapid growth of e-commerce in the UAE and the region. It will improve Pick-Up & Delivery performance in Dubai South and enable better commercial im- port and export capabilities at the Al Maktoum International Airport. Furthermore, we entered an expansive 27-year long-term contract with Abu Dhabi Airports Free Zone to develop the new Express logistics facility that will signifi- cantly enhance the global connectivity of the UAE through Abu Dhabi International Airport. In 2019, we collaborated with Vinculum So- lutions to simplify cross border solutions for brands and retailers in the UAE. We also intro- duced recycled eco-uniforms made from plastic bottles that are identical to the current uniforms. This step towards sustainability will help recycle around 510,000 water bottles per year. We were also recognized with the World’s Best Work- places by Great Place to Work®, and won Kin- centric Best Employers Middle East & North Africa Award, which is a testament to our em- ployee-centric policies and motivated workforce. Expo 2020 Boost Expo 2020 Dubai will boost the logistics industry, as huge investments are being made to drive in- frastructure and logistics services for this massive event. As one of the largest and most iconic global events, it will strengthen the logistics and supply chain segment even further and cement the UAE’s position as a leader in logistics. We are looking for- ward to the opportunity to connect with business- es and commercial representatives from around the world, to share our value proposition and to support their logistics needs in the future. 2020 Plans We look forward to seeing path-breaking innova- tion in smart mobility and last-mile delivery at Expo 2020 that will serve evolving customer ex- pectations. In addition, cross border e-commerce is booming in the region and presents strong growth opportunities in 2020. There is demand to deliver more efficient customer benefits through our enhanced shipping solutions. DHL Express already has a strong foothold in the market and a growing network to support new online operators entering the market. In addition to B2C delivery, the B2B market for logistics services for industry sectors such as automotive, life sciences, retail, healthcare and banking is also growing – and rep- resents a growing business segment for us.
Logistics News ME | January 2020 | 31 January 2020 Gulftainer Peter Richards, Group CEO, Gulftainer 2019 performance in 2019 The two most distinguished achievements for the company were the roll-out of the initial phase of our 50-year concession to develop and operate the Port of Wilmington followed by the launch of the Sharjah Port of Trade (S.P.O.T) service, a new strategic sea cargo clearance of- fering in the UAE. The development and operation of the Port of Wilmington, USA has been very excit- ing and challenging during this first year. An overall investment of US$600 million has been earmarked for upgrades and expansion includ- ing approximately US$500 million for a new 1.2 million TEU (twenty-foot equivalent units) container facility to be situated on the Delaware River at the DuPont company’s former Edge- moor site. This is the largest investment ever in the USA by a private UAE company. During its first year of operation GT USA Wilming- ton participated in a number of firsts, including successfully handling the largest wind turbine blades ever received at its Delaware terminal, unloading and transferring 39 65-metre blades over two days. The new strategic sea cargo clearance offering at S.P.O.T, raised service levels significantly, lead- ing to substantial cost and time savings for our customers. In just a month since the launch of the service, the facility secured four major customers. S.P.O.T. is an inland extension of the Khorfak- kan Container Terminal (KCT), which offers un- matched connectivity within the UAE, as well as faster cargo clearance through on-site inspections. With regards to other milestones: our gate- way flagship Sharjah Container Terminal (SCT) welcomed the M.V. Port Klang from Sunmarine Shipping Services, demonstrat- ing SCT’s strategic position as a prominent gateway port for the region, whilst forging an important partnership based on shared value and operational efficiencies. 2020 Outlook At Gulftainer, we believe that our growth is en- trenched in the partnerships that we have estab- lished over the years and maintained through our commitment to add value to our partners. Our goal is to enhance our current services and capabilities throughout our ports by continuing to work closely with our stakeholders to ensure their requirements are fulfilled. We will continue to build and grow our global footprint: our regions of interest being the Mid- dle East, the USA, Africa, Southeast Asia, and South America. We continue to focus on enhanc- ing the capacity of our existing ports and on the acquisition of new, niche ports. In addition, we will continue to invest in technology and digitisa- tion, which we believe holds immense potential for the industry and can help us to benchmark our operations against best global practices.
32 | Logistics News ME | January 2020 www.cbnme.com Feature Premier Logistics Deepak Khushalani, Founder and Managing Director, Premier Logistics Premier Performance This year was about establishing and growing internally, specifically bringing on board a set of experienced team of professionals that can drive the next 2-3 years of growth and lead the expansion. Focused mainly on employees, giv- ing them the responsibility to drive their depart- ments and in tandem establishing and connect- ing with current and new clients. The last 12 months was to establish vari- ous verticals within the organization which we achieved. Premier Logistics has successfully established a successful Finished Vehicles Lo- gistics (FVL) division in collaboration with a leading Vehicle Distributor in the Middle East. Moreover, we have also developed an in-house VAS department currently catering to over 70 brands within the Middle East, providing ser- vices such as Co-packing, Shrink wrapping, Labelling, Barcoding, Repackaging and much more. Due to the rapid expansion of our busi- ness, we have also managed to secure additional storage facilities (Open Yard and Bulk Storage) for Project Logistics with services such as Lash- ing and Crating for bulk items. Our Goals for 2019 which we set out in late 2018 have very much focused on the following: • expanding our Warehousing Capacity through International Joint Ventures • expanding our Warehousing Capacity within Mainland Dubai, which we have successfully achieved in Al Quoz, Ras Al Khor and Dubai Investment Park • Chemical Partnerships within Jebel Ali FZ and DWC • Yard space with reference to our Project Logistics Division • increased our current business by offer- ing our clients improved end-to-end vis- ibility of their goods through our Logis- tics Management Portal Expo 2020 Boost Certainly the belief is that Expo 2020 will bring in more international exposure to Dubai, its industry and trade connectivity apart from other focus ar- eas that the Government is working towards. We do see additional business inquiries to- wards this event from our current clientele and also in discussions with potential new custom- ers who see this as a stepping-stone to establish- ing operations in the region to cover the Middle East, Africa & Asia. We are currently providing our expertise and experience how to enter the region, establish operations for business and how we can partner with them to make their op- erations more efficient and productive. Focus on Expansion in 2020 The Government is certainly expanding their ena- bling role in making it easier to do business and the focus that has continued over the last few years and going forward in creating the infrastructure for trade & commerce to flourish is a positive trend. A little bit of the uncertainty that was around for most of 2018 and 2019 has slowly started to vanish and the positive effects of regional stabil- ity (thought it continues to be a factor), easing of trade barriers especially between the US and China and other easing of business restrictions is a hopeful sign that 2020 will be better. As a company, Premier Logistics continues to focus on expansion – both locally with tie ups inside and outside the Free Zone, moving for- ward with cooperation in Saudi which is going to be a key growth factor. Opening our China & India Regional Offices, hiring of key staff for our Sales & Marketing Division will be driven by the business opportunities we see in these 2 countries. Our investment in IT Infrastructure, mobile applications and Inventory Manage- ment Systems to keep in touch with today’s fast moving pace of technological advancement will keep us busy.
Logistics News ME | January 2020 | 33 January 2020
34 | Logistics News ME | January 2020 www.cbnme.com Feature Oceanwide Logistics Dubai Paula Bellamy, Managing Director, Oceanwide Logistics Dubai Overall performance in 2019 For OL Dubai, 2019 has been a very mixed year, Q1 & Q2 were pretty strong, Q2 especial- ly so which was ahead of budget However Q3 was very poor in comparison, Ramadan fall- ing into the Summer holidays did not help the situation and it seemed more companies took a longer time this year than normal to travel or have extended vacation, as we head towards the end of the year business is still very steady and we hope to close the Q4 on a positive note. Overall we won’t hit budget targets for 2019. Expo 2020 Expo 2020 currently is disappointing from our point of view, we have quoted for many tenders and are awaiting confirmation of movement. Notoriously we have found that exhibition style cargoes do tend to be left too late within the Middle East, therefore we do expect an influx for Q2 & Q3 2020. We are not however look- ing towards the Expo for business support as it’s an unknown quantity, these types of moves will generally be won by the larger logistics compa- nies and SME’s such as ourselves pick up ad- hoc work. We will therefore continue to work on our regular client base and pick up new cli- ents as they introduce themselves to the UAE. New business in 2020 Beyond the Expo 2020 and certainly enhanced by the event will be new visitors to Dubai and the UAE. We intend to capture as much of the new business potential that we can by network- ing, sales tactics, meetings and generally keep- ing ourselves visible on social networks to help new businesses understand the market, assist to get logistics processes done and as always offer support and advice for free. Something that OL Dubai is very good at is helping our clients and potential clients with the knowl- edge that we have acquired during our years of running a Middle East based Logistics office. Friendly, honest and trustworthy companies such as OL Dubai are in short supply in the Middle East and therefore we take our place to ensure clients who need to move products from one country to another are given the right ad- vice and good customer service. OL Dubai is entering an exciting phase in growth, which we are very happy to be well placed in Dubai as our hub for International logistics expansion, as we enter our 4th year we sincerely believe the exciting trends of Dubai have only assisted our path to success and will continue to do so. Expo2020 is an opportunity for us to find new clients and new business but beyond that Dubai has a vision that will ensure our logistics business is required for years to come.
Logistics News ME | January 2020 | 35 January 2020 Swisslog Alain Kaddoum, General Manager, Swisslog Middle East Expo 2020 Boost The Middle East is gearing up to take advan- tage of digitization in a big way, and we are seeing companies in the region making real investments for real results today. A report by PwC Middle East says that 41% of partici- pants surveyed from the region say they have already reached an advanced level of digitisa- tion and integration and over 62% expect to be at such a level in five years’ time. Com- pared to other countries around the world, that is an unusually high level of digitization. As the mega event of Expo 2020 is near- ing, Dubai’s aim to become a pioneering smart city has already started to take shape. Expo will be a strong platform for the expo- sition of the latest technologies, including those in logistics automation. We expect that events like Expo will help take technology adoption to a new level, so more businesses can benefit from data and robotic driven de- velopments, smart logistics and technology- streamlined operations. The UAE is already adopting innovation, research, science and technology to stimulate a diversified and knowledge-driven economy. According to a report by PwC, the technol- ogy is projected to contribute up to 14% to the UAE’s GDP growth by 2030. Outlook for 2020 The business focus globally and here in the region is no longer on the production of mass goods, but on the development of cus- tomised products and thus on the customer’s requirements. Rapid growth in eCommerce is expected to increase the demand for mod- ern warehouses with advanced tech solu- tions. Moreover, an increasing number of FMCGs, which are typically a significant contributor to the economic growth in the region, are expected to increase the demand for modern warehouses. This is likely to transform warehousing operations in the re- gion, specifically in areas of inventory man- agement, order picking, and real-time moni- toring of stocks. We see plenty of opportunity will be in the retail, F&B and e-commerce sectors. These sectors are booming, and for businesses to keep up with the increased demand, they will need to turn to automation. Our solu- tions will help automate these warehouses and distribution centres, so orders can be fulfilled efficiently. We also expect to see a rise in the usage of data for the efficient functioning of warehouses, so we’ll support businesses in the Middle East with our inno- vative software solutions for the same. Achievement of 2019 • We have extended the footprint of Swisslog Middle East in the region • We have achieved new project sales • We have doubled our local headcount • We were awarded a few industry awards 2019 • The company introduced many innovations such as ItemPiQ to the region, and we also successfully created awareness around the benefits of data driven intralogistics solutions amongst businesses in the region • We revealed the project with Axiom Telecom • We have won new multi-million dollar projects with leading customers (details to be revealed shortly) • We have almost completed our implementation of Mai Dubai and Almarai local projects and completed several AutoStore projects
36 | Logistics News ME | January 2020 www.cbnme.com January 2020 Feature Ups Jean-Francois Condamine, President, High Growth and Emerging markets at UPS Overall performance in 2019 In the Indian Subcontinent, Middle East and Af- rica (ISMEA), for the last 12 months, UPS has expanded our footprint through private-public partnerships, as well as network flexibility and efficiency to respond to fast changing demand, capturing market opportunities and offering competitiveness to our customers of all sizes. Our goal is to solidify our position as the fast- est, most technologically-enabled and respon- sive company in the industry – and so we are constantly innovating the way we operate and deliver services to our customers. This year we announced that drones are officially joining our fleet with the addition of a new subsidiary, UPS Flight Forward. We received Part 135 certifica- tion from the U.S. Federal Aviation Administra- tion to allow flight operations beyond line of sight, making us the first U.S. drone operation to deploy revenue-generating flights. UPS Flight Forward is rapidly building a robust customer base and a network of technology partners to galvanize our leadership in drone delivery. As part of UPS’s continuous investment in of- fering additional services to customers, we also expanded UPS Worldwide Express to 14 new countries in ISMEA. The sweeping expansion of global services includes later pick-up times, improved time-in-transit and Saturday delivery, all part of the company’s desire to better connect businesses to its smart global logistics network, while demonstrating its strategic focus on inter- national high-growth markets. The series of new UPS services and solutions is designed to help customers be more success- ful, while expanding our competitive advan- tages, and will create even more growth oppor- tunities. Overall, 2019 has been another great year for us and we look forward to continuing to build on our successes in 2020 too. 2020 Outlook We are positive about the signs the market is display- ing. The emirate is already a very appealing desti- nation for global companies and investors, and its appeal is only expected to increase and strengthen further through the inauguration of Dubai’s Silk Road. Given the UAE is within an 8-hour flight from two thirds of the world’s population and 65% of the world’s GDP, it is poised to take advantage of economic activity among the world’s fastest growing and developing economies. Operating in the region since 1989, and as Official Logistics Partner of Expo 2020, UPS is committed to helping establish Dubai as a transportation hub for global commerce, con- necting businesses throughout the interconnected countries, and we look forward to continuing to do so in the year ahead. We will also continue to actively support our customers, especially small and mid- sized businesses, as they seek to enter or grow their presence in international markets.
800 9090 rta.ae Purchase your ticket and relax in our new air-conditioned station at Dubai Festival City. Cruise between the mall and the Al Jaddaf Marine Station or easily connect to your journey onward as we are integrated with the Creek Metro Station. BM2 BM2 DC1 BM2 DC1 DC1 Creek Park Dubai Creek Harbour Dubai Festival City Deira City Centre Dubai Creek Floating Bridge Floating Bridge Garhoud Bridge Business Bay Crossing Business Bay Canal ZAA'BEEL AL GARHOUD AL RASHIDIYA Dubai Design District Dubai Festival City Dubai Creek Golf & Yacht Club Al Boom Tourist Village Creek Park B Creek/Al Jaddaf Creek Park A Metro Green Line Abra Water Bus Enjoy easy connectivity across the Al Jaddaf area. Routes Abra and Ferry timings: Air-conditioned Abra Al Jaddaf Marine Station to Dubai Festival City (BM2) Saturday – Thursday 7:00 am - 12:00 midnight Friday 9:00 am - 12:00 midnight 10 minutes (Peak Hours) 20 minutes (Off-peak Hours) AED 2 per person, per trip in one direction Ferry Round Trip – DFC Every day 4:00 pm Min. of 8 passengers Timings Frequency/Fares/Features For detailed timings and information, visit the respective customer service office inside the station. Children under 5 years travel for free only for commuter trips.
38 | Logistics News ME | January 2020 www.cbnme.com Opinion 5 Supply Chain Predictions for 2020 Jonathan Wood, General Manager, Middle East and Africa, Infor gives us a look at some of the emerging trends and themes you can expect to take shape in 2020
Logistics News ME | January 2020 | 39 January 2020 Supply Chains Retreat Inward In 2019, we saw supply chains shift out of re- gions such as China due to tariffs and trade conflict. In 2020 an emphasis will shift towards self-sustaining economies with supply chains relying on domestic resources and trading part- ners where possible. This will occur primarily in the US, China and other developed economies. Production will increasingly lean towards “pro- duce locally, deliver locally.” On the consumer side, there’s a growing trend towards domestic brands. In China, consumers are increasingly turning to Chinese brands for clothing, high- tech gadgets and phones, and cars – and increas- ingly shunning Western names. In the US, com- panies are preparing for long term tensions with China by diversifying their supply networks be- yond China and building up new networks else- where, in many cases closer to home. Upheaval of Industry Norms In October, luxury brand Louis Vuitton an- nounced plans to open a 100,000 square foot factory in Texas, the latest example of a shift away from industry best practices of consoli- dated production of high-end goods. Production of its high-end handbags are increasingly spread out, with 8 of its 24 manufacturing sites now re- siding outside of France. In November, Maersk announced a pullback on ocean vessel investments, stating an intention to focus on land services as part of a broader initiative to drive growth. “We need to grow in acquisitions on land warehouses and customs house clearing services,” Chief Executive Søren Skou said. “We have invested around $1 billion already on the land side supply chain and we are looking to put in hundreds of millions more over the next year.” In 2020, expect more upheaval of standard practices as businesses seek new ways to inno- vate and serve customers within the confines of a tense trade environment. Next Steps Moving into 2020, it’s more important than ever for businesses to be thoroughly connected to their overseas partners. Collaboration, vis- ibility and free-flowing data between parties are essential ingredients for thriving in a future that is increasingly uncertain and pressure-packed. Those companies that orchestrate their supply chain as a single cohesive network will have the agility and executional speed to proactively sense and respond to meet their customers’ needs. This will be a significant competitive ad- vantage in 2020 and beyond, separating indus- try leaders from the laggards. The year 2020 approaches with promise amidst a backdrop of innovation and transformation occurring at a speed never witnessed before. We’re experiencing a digital revolution that is changing the way we live, work and interact with one another. The power of information is just beginning to blossom as more of our deci- sions are based on data and use cases for artifi- cial intelligence are delivering significant value. Meanwhile, global movements to protect the planet and operate responsibly continue to grow in importance. And an undercurrent of de-glo- balization continues to change the way coun- tries and companies interact with each other. Sustainability Required Sustainability is becoming a requirement in many industries. For not only retailers and con- sumer goods companies, but businesses of all stripes, sustainability is increasingly expected by customers, shareholders and the masses. It is even becoming increasingly important in talent recruitment. Environmental responsibility will be a core issue in the 2020 U.S. presidential race and elections around the globe. One major initiative, the IMO 2020 low-sul- fur mandate, kicks in on January 1st. IMO has the potential to hit the shipping industry with eye-opening impact. Demand for costly scrub- bers and low-sulfur fuel will eat into margins and catch many carriers and shippers off-guard. Slow steaming will add days to already lengthy trips, forcing entire ecosystems to re-structure how they plan and execute on the production and delivery of goods while meeting require- ments. Eliminating Empty Miles With a growing focus on sustainability and ef- ficiency, empty containers will be an increas- ingly hot button across the shipping industry. In freight, waste means that more fuel is con- sumed, more carbon is emitted, and drivers spend more hours sitting idle. Empty miles, non-revenue miles or deadhead miles are a drag on the industry and economy, as businesses pay more to move goods. Carriers account for their own expectations for empty miles when decid- ing how much they charge for any particular load, so everyone from shippers down to end consumers – and, of course, the environment – ultimately pay the cost of empty miles. Human Intelligence Molds Artificial Intelligence Greater linking between the human mind and artificial intelligence is emerging. Research- ers have advanced studies of the human mind, including infants, to better understand how learning develops at an early age. The goal is to enhance artificial intelligence and machine learning models to be less linear and ridged, and more curious and perceptive. Current machine learning engines require feeding thousands of labeled images to teach machines to recognize what simple objects or animals such as a cat looks like. Yet errors are still prone when im- ages of blurred shapes resembling that object are presented. An infant, on the other hand, learns through a handful of experiences what a cat looks like, and these might be actual photos or drawings in books. Infants also learn through experimentation and curiosity. In order to imi- tate this experience, some ML programs are being developed to be rewarded for curiosity versus accuracy. This research, linking human brains to AI, will increase and begin to show specific results in further enhancing human at- tributes in machines. As supply chains progress towards autono- mous processes, machine learning and AI plat- forms will continue to learn by observing hu- mans and data signals that span across parties, regions and supply chains, to understand the complexities and nuances of global trade. Some workflows will move to lights-out status, while many other complex scenarios involving multi- party collaboration and network-wide orchestra- tion will require greater learning from their hu- man counter-parts.
40 | Logistics News ME | January 2020 www.cbnme.com January 2020 Freezones Dubai - Global Transit Hub The Dubai Free Zones Council (DFZC) has signed a memorandum of understanding (MoU) with Dubai Exports in a bid to boost business opportunities, foreign trade and the volume and value of exports. The MoU aims to reinforce Dubai’s position as a global destina- tion for quality exports from various economic and service sectors, and free zones and as a center for re-export trade. The MoU aims to exchange expertise, infor- mation and knowledge. and enhance commer- cial and business opportunities and export trade globally with a focus on building capabilities and optimizing resources, and includes within its scope manufacturers, exporters, traders and service providers. According to the MoU, free zone companies and members of Dubai Exports are mandated to build and develop commercial and invest- ment synergies. Both parties to the agreement are encouraged to communicate, interact and explore opportunities for organizing joint com- mercial and promotional activities. In addition, the MoU encourages the exchange of commer- cial information, databases, research and mar- ket intelligence, as well as mutual learning, per- formance comparison, and employee training in line with the highest international standards. The MoU motivates qualified companies to become registered members of Dubai Exports and encourages free zone companies to join the ‘Exporters’ Portal’ initiative and benefit from the information and electronic services it pro- vides to facilitate new market access for their products and services. Dr Juma Al Matrooshi said: “In line with the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and according to the strategic plan developed by Dubai and its free zones to diversify the emirate’s economy and enhance income sources, Dubai has positioned itself as a global platform for export and transit trade.” Al Matrooshi pointed out that free zone trade during the past five years has reached AED2.6 trillion, with imports accounting for AED1.5 trillion, non-oil exports registering AED131 bil- lion, and transit trade notching up AED1.03 tril- lion. Free trade accounted for 32% of the overall foreign trade from 2014 to 2018, amounting to AED8.1 trillion. Furthermore, over 44,000 com- panies now operate in Dubai’s free zones. For his part, Engineer Saed Alawadi said: “Dubai Exports is pleased to further consolidate synergies with DFZC with this agreement that seeks to achieve Dubai’s vision for the future and our own mutual strategic goals to provide competitive export opportunities for companies from diverse industrial and commercial sectors. In collaboration, we will offer service packages and knowledge exchange platforms, including conferences, awareness workshops, and special- ized sector-specific studies. We will also facili- tate participation in local and international exhi- bitions and trade missions and arrange business meetings to advance our shared interests. “This agreement will also contribute signifi- cantly to achieving the Dubai Silk Road Strategy and Dubai’s geo-economic map launched earlier this year under the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum.” R to L Dr. Juma Al Matrooshi and Saed Alawadi signing the MoU
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42 | Logistics News ME | January 2020 www.cbnme.com Trucks AWD Trucks, Sold! Renault Trucks’ distributor, Al Masaood, secures biggest ever order for AWD trucks in the UAE. The new deal is West Coast Group’s first partnership with Renault Trucks in service and our major clients now range from government departments and civil defence through to industrial and commercial organiza- tions. This new deal with West Coast Group represents an important vote of confidence in both the quality of the vehicles produced by Renault Trucks and the strong reputation of Al Masaood for delivering the highest standards of service.” He added: “It is a result of our decades of ex- perience in the UAE’s automotive sales and af- ter-sales market that we are able to provide our customers with the highest professional stand- ards of service. A substantial factor in securing the deal was West Coast’s confidence in Renault Trucks’ West Coast Group, one of the UAE’s lead- ing suppliers of waste and facilities manage- ment services, has confirmed an order for 24 All-Wheel Drive (AWD) trucks from Renault Trucks. The deal, which is the French truck maker’s biggest ever order of AWD trucks in the United Arab Emirates, is for 22 units of the D14 RK270 4x4 model and two Kerax 440 P6x6 trucks. All models are All-Wheel-Drive trucks, which is just one of the reasons West Coast Group decided to choose Renault Trucks for this significant purchase. Renault’s trucks are renowned for their reliability and are equipped with a multitude of safety features, such as ABS and EBS, as well as technologies that meet the UAE-based waste management company’s op- erational requirements. The usable chassis length is one of the long- est available on the market at over six meters, and the trucks’ turning circle provides optimum maneuverability in narrow spaces. Compared to competitor brands, Renault Trucks offers class- leading engine performance with higher torque at lower RPM which results in frugal fuel con- sumption and a longer engine life. Mohamed Zeftawi, General Manager of Al Masaood Commercial Vehicles & Equipment, said: “Al Masaood has been an icon of the UAE automotive market for over four decades. Being the sole distributor for Renault Trucks in Abu Dhabi has helped us to deliver excellence
Logistics News ME | January 2020 | 43 January 2020 UAE distributor - Al Masaood – which has been a leader in the waste management industry for almost two decades. In particular, the high qual- ity of after sales service it provides, with 24/7 availability across three branches in the UAE, and Renault Trucks’ two year warranty on spare parts both contribute to a seamless operation. Commenting on the new deal, Dany Rmeily, CEO of West Coast Group, said: “Trucks are in the frontline of our business, so the success of our services significantly relies on the vehicles we use in the field. Having Renault Trucks in our fleet provides the guarantee of quality and reliability that is essential for us. We took deliv- ery of both models in the standard specification which is perfectly suited to the various applica- tions, such as tipper and tipper with crane” Founded in 2000, West Coast Group pro- vides a multitude of services including waste and facilities management through its different subsidiaries. Working with many of the UAE’s best-known organizations and companies, West Coast Group operates a fleet comprising almost a thousand vehicles in total, ranging from spe- cially designed trucks that are used to collect municipal waste to road sweepers and logistics and support vehicles. Commercial Director of Renault Trucks Middle East, Guillaume Zimmermann, said: “This new deal with West Coast re-emphasiz- es the confidence that the country’s leading fleet management companies have in Renault Trucks’ vehicle line-up. We have extended ex- perience in the waste management industry and our products are perfectly suited to the needs of our partners, and, we have the ability to custom- ize our vehicle to ensure they get the most out of our trucks. Across the Middle East, Renault Trucks sup- plies transport professionals with a wide range of services and vehicles, ranging from 2.8 to 120 T, that are adapted to local and regional distribution, construction and long-distance ac- tivities. Globally renowned for being sturdy and reliable, with low fuel consumption that deliv- ers greater productivity and enhanced operat- ing costs, the model line-up includes D, C and K ranges.
44 | Logistics News ME | January 2020 www.cbnme.com FUTURE OF AIRPORTS Talking point Benoit Verbaere, Business Development Director, SITA gives us eight bold predictions about the technology shaping how passengers will move through the airport of the future The airport experience has morphed dramat- ically in the past 10 years with the introduc- tion of biometric security, mobile check-in, and baggage tracking. And there is much more to come. The next decade will witness an exponen- tially accelerated pace of change as digital na- tive passengers and staff usher in transforma- tive technologies, from flying taxis to airports that think for themselves. Benoit Verbaere, Business Development Director, SITA predicts major change for nearly all aspects of the air- port experience. Security will be integrated into a frictionless journey Over the next decade, going through security will mean walking along a corridor. No more taking off your coat, shoes, and belt, or put- ting little bottles into little bags. And no more queues. Passengers and their bags will be rec- ognized automatically as they go through au- tomated checkpoints. Hard checkpoints will be replaced by sensor corridors, making physical document checks obsolete. Passengers will be in control of their digital identity The adoption of digital self-sovereign identity and persistent travel tokens will put passengers back in control of what aspects of their iden- tity should be revealed, for what purpose, as they travel. In future airports, risk will be con- stantly assessed by specialist artificial intelli- gence (AI), using the passenger’s digital iden- tity. The sensitive elements of this data will be used only by governments, which will use au- tomated collaborative systems to approve – or, in some cases, not approve – the various steps of the journey. Airlines will no longer hold the responsibility for processing passenger data for border security purposes. Travel steps will be decentralized Everything will have tags: people, bags and cargo. And they will be tracked throughout their entire journey, whatever mode of trans- port they are using. This will mean travel au- thorization and customs checks can be made in advance of the flight, saving time at the air- port. And remote bag drop-off and collection
Logistics News ME | January 2020 | 45 January 2020 will be offered wherever it is most convenient for the passenger, at train stations for example. The airport will think for itself Artificial Intelligence (AI) algorithms will be key to efficiency, with sophisticated AI becom- ing the secret sauce for airports. Airports will use Digital Twin technology to bring real-time operations to life for all stakeholders, improv- ing operational efficiency and enhancing the passenger experience. A Digital Twin is an advanced computer simulation that takes data from across the entire airport and airline op- erations to visualize, simulate and predict what will happen next. That predictive data will then be used to streamline operational activities, automating them where possible. Automated messages such as: “Two A380s will land at the same time because one is delayed: ensure there are enough people on immigration desks.” or “The feedback from the restrooms on the second level is negative: send the cleaners.” The rapid exchange of information will mean proactive responses and therefore more responsive and accurately planned operations for airlines and airports. The airport will be highly automated High-speed mobile connectivity at the airport will be central to mission-critical performance. Airports will increasingly run just-in-time oper- ations, with automation and self-service mak- ing everything more efficient. And connected, automated and autonomous vehicles and ro- bots are set to become commonplace through- out the airport. Automation will also enable more efficient sharing and use of assets. A wide range of ob- jects – from baggage or aircraft tugs – will be connected via 5G networks, providing massive amounts of data, offering real-time, predictive and historic views of airport operations. The airport will adapt to passengers’ needs The fast and frictionless journey to, and through, the airport will make some current revenue streams, for example, parking, weaker or obsolete. Airports will, therefore, need to find new ways to augment the travel experi- ence to replace them. Personalization will be the key, providing passengers with what they want, when they need it at any point through- out their journey from start to finish, not just at the airport. Examples could include an airport-provided limo service comprising bag check-in at your home, office or hotel, and fast-track approvals and facilitation for regular travelers. Mobility will be a service on demand Airports will become giant flying ‘park and ride’ centers, providing access to a wide range of transport options. Innovations such as air taxis will be emerging by 2030 to provide much more efficient transport to and from the air- port. They may even provide competition on short-haul routes. We will truly have air travel for everyone. There will be an API for everything we do at the airport Since tomorrow’s travelers will be digital na- tives, people running airports will need to be digital natives themselves. This technological- ly-literate environment will result in airport complexity being sliced into a set of data ser- vices that can be shared as application pro- gramming interfaces (APIs). It will provide an ecosystem that enables collaboration and in- novation, which is easier for everyone to use. For example, AI and new syntaxes will enable requests of industry-specific insight in human terms: ‘Is there a pink bag as carry on at gate B34?’ or ‘The line at arrival concourse A is too long, send more taxis’.
46 | Logistics News ME | January 2020 www.cbnme.com Maritime Emiratization in Maritime The increasingly reputable classification society, Tasneef, is bolstering its name, as well as the status of the country, by training Emiratis and enabling them to emerge as tomorrow’s industry leaders Emirates Classification Society (TASNEEF) has rapidly progressed in less than a decade to establish itself as a leading classification soci- ety in the region. Tasneef has successfully ac- complished this by relentlessly prioritizing the best interest of its clients, implementing its expertise across the local maritime sector, and uplifting young UAE caliber. “Improving our clients’ safety, as well as their environmental and business perfor- mance, has always been at the forefront of our agenda,” stated Eng. Saeed AlMaskari, CEO of Tasneef. He continued, “This, along with the assimilation of ambitious UAE Nationals within our infrastructure, is what the strength of Tasneef is built on. Those driven individu- als exemplify the appeal of working within our classification society, and serve as bench- marks for up-and-coming youth who aspire to integrate themselves within the framework of maritime on local and international levels. Furthermore, our reliable reputation within the industry is the byproduct willingly groom- ing such individuals, and consistently deliver- ing our expertise and activities across maritime classification, ISO certification, safety inspec- tion and training.” Renowned Maritime Stature In 2012, Tasneef became the first national clas- sification society in the UAE, as well as the Gulf Cooperation Council (GCC) region and Arab world. Tasneef has since pursued an ac- tive role in enhancing maritime and been suc- cessful in their endeavors as they are now the preeminent classification society in the UAE. Tying their service offering to prominent com- panies in the region has significantly contrib- uted to this success. Eng. Waleed AlTamimi, General Manager of Tasneef Maritime explained, “Strong busi- ness intelligence is what has allowed the UAE to prosper and become a leading maritime hub worldwide; embracing technology and improving the local shipping industry’s eco- logical footprint is what will allow this to sus- tainably continue. The UAE’s wise leadership has repeatedly made this clear and Tasneef was fortunate to hit the ground running at a time when digitalization was in its early stag- es. Understanding the importance of adapting
Logistics News ME | January 2020 | 47 January 2020 to the times is what has allowed us to gradu- ally expand our role in the industry and stra- tegically develop the industry externally, as well as internally.” Developing Emirati Caliber With thousands of ships working in UAE, tens of thousands of work opportunities exist for UAE nationals to seize. However, the lo- cal workforce contributes to less than 1% of seafarers. Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi Ports are a good example of governmental companies who are paying attention to training the local maritime workforce. Tasneef is also administering its best efforts to join these powerhouses, in the hopes of raising awareness about the impor- tance of developing the UAE’s talent. With these companies contributing to the major- ity of ships working in UAE waters, many private maritime companies must administer greater efforts to integrate UAE Nationals into their organization. Seeking to enhance its classification stand- ards through Emiratization, Tasneef recently on boarded a pair of fresh graduates. Ayesha AlSaadi, Engineer in Training at Tasneef, is currently undergoing a year-long extensive training to qualify as Plan Approval Engineer. Alsaadi commented saying, “This opportunity has been as enjoyable as it has been education- al, and I am sure that the theoretical and prac- tical knowledge I am receiving will be of great use moving forward. I am hopeful of special- izing in the engineering segment of classifica- tion, and I am eager to put what I have learned to use, especially when I undertake additional training in the mechanical section after this 12-month stint.” Upon successful completion, Al Saadi will become the first-ever UAE woman to qualify in such a unique field. Similarly, Ahmed AlWa- hedi, Engineer in Training at Tasneef, is un- dergoing the same training and will become the fifth UAE national to qualify as a Surveyor for the classification society. AlWahedi said, “I am grateful to Tasneef for training young UAE Nationals such as myself. The country’s suc- cess is inspiring, and we want to make sure we continue building on what has been given to us. I am highly passionate about shipping and being trained to IACS (International Associa- tion of Classification Societies) standards will help me as I advance in my career and survey all kinds of vessels.” Adamant on encouraging private compa- nies to be more involved in Emiratization, Tasneef has garnered the help of Abu Dhabi Ship Building (ADSB) and Al Fattan to train UAE engineers on practical matters. This has allowed them to set the industry standard and employ 25% of their surveyors as UAE Nationals – a figure that easily places this feat at the forefront of classification societies in the UAE. Al Maskari concluded by saying, “Increas- ing joint cooperation between both govern- ment and private sectors is essential for Tasneef’s Emiratization ambitions, as well as the entire UAE. We hope to see this pro- gression rise in the near future, and we are accordingly working in a strategic manner to realize this vision. Emiratization is necessary to sustain the country’s strong global stand- ing, as it will help organizations effectively achieve strategic in-house goals. We will continue pushing Emiratization as a way of continually creating a positive future for the UAE, while empowering young cadres in the maritime sector to upgrade the industry lo- cally, regionally and globally.”
48 | Logistics News ME | January 2020 www.cbnme.com Supplier News UD Trucks has confirmed Zahid Tractor as the new exclusive importer and distributor of UD Trucks in the Kingdom of Saudi Arabia. This announcement follows a mutual agreement between UD Trucks and Rolaco Group, (the brand’s previous partner in the Kingdom), to terminate their collaboration. The customer is central to everything that UD Trucks does – over almost 40 years of operation in KSA, the brand has been focused on delivering the highest possible standards of customer service, with a specific focus on minimizing downtime, ensuring reliability and adhering to UD values. During the initial phase of this new partnership, UD Trucks and Zahid Tractors’ principal objective will be to achieve the highest levels of customer satisfaction whilst ensuring that customers do not experience any delays during the brand’s transition to the new distributor. Together, UD Trucks and Zahid Tractor are committed to raising the standards of customer service and support to the highest evels, reflecting UD Trucks’ ambitions for the Kingdom and Zahid Tractor’s long-standing reputation as a customer-centric organization. The new partnership between UD Trucks and Zahid Tractor is a natural transition, with the Saudi-based company already serving as the importer for several other Volvo Group brands. Founded in 1967, and today focused on three core business units – Construction Machinery, Commercial Vehicles and Rental; Zahid Tractor boasts an impressive reputation for its customer service. Zahid Tractor’s branches network includes 26 locations, strategically situated across the Kingdom. Mourad Hedna, President of UD Trucks MEENA, commented: “Saudi Arabia has always been, and continues to be an extremely important market for UD Trucks. In our new partnership with Zahid Tractor, we see excellent potential for future growth and look forward to implementing the significant plans we have for the Kingdom together. At the same time, we recognise that the strong reputation that the brand enjoys throughout the country would not have been possible without the efforts of Rolaco Group over recent decades. We thank them for this, and wish them success as they pursue their efforts in other fields.” Nasser J. Bayram, Group President – Transport at Zahid Group, commented: “We value this new opportunity and partnership with UD. We are excited about the strategic potential it adds to our portfolio with its range of Medium and Heavy Duty trucks. UD, a Volvo Group Brand, is a natural fit to Zahid Tractor, a Volvo Group partner of 40 years. The same infrastructure, after sales services, Customers Centers network we already have in place serving our Volvo Trucks, Renaults Trucks, and Volvo Bus customers will be welcoming all of UD existing and new customers.” Zahid Tractor named as exclusive importer and distributor of UD Trucks, Parts and Services in KSA U p d a t i n g y o u o n t h e r e g i o n ’ s s u p p l i e r s Supplier News CBNme.com/logistics-news twitter: @logisticsnewsme Facebook: /LogisticsNewsME
Logistics News ME | January 2020 | 49 January 2020 With 90 million passengers passing through Dubai’s two airports – DXB and DWC – every year, consuming tens of thousands of plastic items from straws to water bottles to coffee lids on a daily basis – the plastic-free initiative pres- ents a huge logistical challenge to the management team and to every busi- ness in their supply chain. But with the UAE alone producing around 7 billion tonnes of plastic waste every year – it’s a challenge they fully intend to meet, rolling out the ban with a phased approach with the aim for completion scheduled by the end of the 2020. Pressure is growing for corporations and individuals to act more responsi- bly and adopt more sustainable prac- tices to fight against plastic pollution and preserve marine life. The changes happening on such a huge scale as a result of Dubai Airports’ ban could soon become a template for other major transportation hubs and organisations around the world to follow. Already 95% of Dubai Airports’ com- mercial partners have signed the pledge to stop using disposable plastic in their outlets. Notable amongst them is Costa Cof- fee which has committed to replac- ing its plastic-lined cups with a 100% renewable, plant-based “smart” cup. The coffee giant sells over 2.6 million cups of coffee in Dubai’s airports a year – that alone has a great impact on change. This will be followed later next year by the introduction of a coffee cup lid made entirely from wood and paper fibre instead of single-use plastic. Pret a Manger, McDonalds and Giraffe are also on board, alongside around 290 other retail and F&B outlets, and have started the process of eliminat- ing consumer-facing plastic items from their concessions and replacing them with more sustainable alternatives in just 6 months. Dubai Airports bans single use plastics starting in 2020
50 | Logistics News ME | January 2020 www.cbnme.com PI Marine Hamburg Hamburg, Germany PI Marine Hamburg is dedicated to increas- ing productivity and efficiency across the conception, design and construction phases through to upgrades and modifications of the vessel’s in-service life. Global Investment in Aviation Summit Dubai, UAE The Global Investment in Aviation Summit is an exclusive summit which will feature the international governments’ investment proposals delivered by key government officials and top executives from the private sector. It will also provide attending finan- ciers with facts and figures and the per- spectives on ongoing and future projects. The summit will be a reliable environment for investors and project developers to build conclusive and strategic partnerships. January January 20-21 27-29 Airport Master Planning Summit Singapore The Airport Master Planning Summit will provide insights into key issues and trending topics within airport master planning plus, it will offer an excellent opportunity for you to learn more about recent projects and innova- tions in airport design and development. January 14-17 T h e k e y e x h i b i t i o n s , c o n f e r e n c e s , a n d s e m i n a r s c o m i n g u p t h i s m o n t h Save the date CBNme.com/logistics-news twitter: @logisticsnewsme Facebook: /LogisticsNewsME International Marina & Boatyard Conference & Exhibition USA International Marina & Boatyard Conference & Exhibition is the leading marina and boat- yard conference which is geared specifically toward marina and boatyard owners, opera- tors and managers, as well as dock masters, harbormasters, boat builders and repairers, and industry consultants. The marine profes- sionals gather to exchange information, talk about the future of the industry, and get down to business. January 14-16
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