Logistics News, January 2026
Page 1
JANUARY 2026
CONNECTING TRADE PROFESSIONALS
WITH INDUSTRY INTELLIGENCE
M A R I T I M E
Using the Sea as a Fast Lane
T R A N S P O R T
On Track for a Smarter City
S U P P LY C H A I N
The Disruption Gap
A NEW FORCE
IN LIGHT DUTY
With the launch of the Kuzer in
the UAE, UD Trucks targets the
heart of urban distribution, where
uptime, flexibility, and everyday
performance matter most
Page 2
New IVECO S-Way: high technology and efficiency on all missions
A wide choice of Euro III / V diesel engines, delivering class-leading power from 360 hp
to 560 hp Euro III / 570 hp Euro V and superior fuel economy.
12-speed HI-TRONIX automated transmission with the most advanced technology
in its category, electronic clutch and best-in-class torque-to-weight ratio.
Full range of fuel-saving devices, such as anti-idling feature, EcoSwitch, Ecoroll and Smart Alternator.
Top levels of comfort and safety, with a completely redesigned and reinforced cab,
featuring enhanced direct visibility and enlarged cab livability.
Drive the new way.
Page 3
Expert Insight
A Logistics Industry
Outlook for the UAE and
MENA Region
Maritime
Using the Sea as a Fast
Lane
Cover Story
A New Force in Light Duty
Food Trade
Navigating Future of
Food Trade Amid Global
Transformation
Transport
On Track for a Smarter City
E-Commerce Logistics
Beyond 30 Billion
Autonomous Logistics
When Supply Chains Start
Thinking for Themselves
Supply Chain
The Disruption Gap
Global Logistics
The New Logistics World
Order
Urban Logistics
From Rides to Routes
Last-Mile
Closer Than Ever
16
20
24
28
30
34
36
40
44
48
52
IN THIS ISSUE
Page 4
Nestled by the coast of Lusail sits the splendor of
Raffles and Fairmont Doha, where luxury is rooted
in even the smallest details. Open the doors to
mesmerizing hospitality and make memories in a
world of sophistication.
Page 5
Page 6
SUBSCRIBE
subscriptions@bncpublishing.net
PO Box 502511 Dubai, United Arab Emirates
P +971 4 4200 506 | F +971 4 4200 196
For all commercial enquiries, contact jo@bncpublishing.net
T +971 50 440 2706
All rights reserved © 2025.
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.
Printed by United Printing and Publishing | upp.ae
Images used in Logistics News ME are credited when necessary. Attributed use of
copyrighted images with permission. All images not credited courtesy Shutterstock.
cbnme.com
ACCESS FRESH CONTENT DAILY ON OUR WEBSITE!
Logistics News ME
@Logisticsnewsme
Logistics News ME
In addition to our print edition, we’re bringing
you all sorts of industry news on our web
mediums. We’re looking forward to interacting
with our readers on all of our social media and
web platforms. See you on the web!
CEO
Wissam Younane wissam@bncpublishing.net
Managing Director
Rabih Najm rabih@bncpublishing.net
Group Publishing Director
Joaquim D’Costa jo@bncpublishing.net
Editor
Aya Zhang aya@bncpublishing.net
Commercial Director
Andrea Mocay andrea@bncpublishing.net
Digital Reporter
Reeba Asghar reeba@bncpublishing.net
Creative Lead
Christian Harb chriss@bncpublishing.net
Junior Art Director
Rizaldi Febrian
Marketing Executive
Aaron Joshua Sinanbam aj@bncpublishing.net
Videographer
Eduardo Buenagua
CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE
6 | LOGISTICS NEWS ME | JANUARY 2026
WWW.CBNME.COM
Page 7
Page 8
A
new year often feels like a
fresh page, but in logistics,
the story rarely starts from
zero. The changes we see
today are built on the
moves made yesterday, the
investments completed
quietly, the processes refined
before anyone noticed.
2026 is shaping up to be a year of decisions
rather than surprises. Ports, networks,
and technology continue to evolve, and
companies that think beyond speed or cost
are quietly defining what resilience and
reliability look like in practice. It is not always
dramatic, but it is meaningful.
In this issue, we look at the forces shaping
this next chapter. From global e-commerce
reaching record milestones to regional
hubs positioning themselves as strategic
linchpins, the stories show logistics as
a complex system where infrastructure,
insight, and human judgment all matter.
This is the year to watch who adapts
thoughtfully and who simply reacts. The
details that seem small now will determine
who leads the trade routes, both regionally
and globally, by the end of the year.
Here’s to understanding what comes next,
and how we keep shaping it.
A New
Chapter
L e t t e r f r o m E d i t o r
Aya Zhang
Editor
aya@bncpublishing.net
Xiaoyue (Aya) Zhang
xiaoyuezhangg
8 | LOGISTICS NEWS ME | JANUARY 2026
WWW.CBNME.COM
Page 9
Page 10
Page 11
Page 12
BAHRI AND HADEED SIGN LOI TO EXPLORE MARITIME TRANSPORT
COOPERATION
T
he
National
S h i p p i n g
Company
of
Saudi Arabia
(Bahri)
and
the
Saudi
Iron & Steel
C o m p a n y
(Hadeed) have signed a Letter of
Intent (LOI) to explore potential
cooperation
in
maritime
transport to meet Hadeed’s Iron
Ore shipping needs.
The LOI, signed in Riyadh,
states that both parties intend
to discuss mechanisms for
utilising
Bahri
capabilities
to meet Hadeed’s maritime
transport requirements. This
collaboration aims to explore
potential joint opportunities
between Bahri and Hadeed
,
including
the
potential
development and construction
of new vessels tailored to
Hadeed’s
operational
and
technical needs within the
Kingdom.
On this occasion, Bahri’s Chief
Executive Officer, Eng. Ahmed
Al-Subaey, said:
“This
collaboration
marks
an
important
step
toward
enhancing
the
national
maritime transport ecosystem.
At Bahri, we remain committed
to supporting supply chains
and providing reliable and
resilient shipping solutions that
enhance operational efficiency
for our partners.”
Meanwhile,
Hadeed’s
Chief Executive Officer, Mr.
Abdulqader
Al-Mubarak,
stated:
“Hadeed is continuously working on
developing its operational and logistics
ecosystem. This collaboration with Bahri
represents a supportive step toward
securing specialised maritime transport
solutions that meet our operational
needs and enhance the efficiency of the
industrial sector.”
The cooperation aligns with efforts to
strengthen industrial and operational
integration and localise value chains.
Bahri serves as the Kingdom’s national
maritime carrier with a global logistics
footprint, while Hadeed is one of Saudi
Arabia’s
leading
national
industrial
companies in the steel and iron sector.
REGIONAL NEWS
Bahri and Hadeed have signed a Letter of Intent to explore cooperation in maritime transport for iron
ore shipments.
Bahri’s Chief Executive Officer, Eng. Ahmed Al-Subaey and Hadeed’s
Chief Executive Officer, Mr. Abdulqader Al-Mubarak
12 | LOGISTICS NEWS ME | JANUARY 2026
WWW.CBNME.COM
Page 13
DUBAI CUSTOMS STRENGTHENS STRATEGIC TIES WITH DHL
A
s part of Dubai Customs‘ ongoing efforts to
strengthen strategic partnerships with private
sector institutions and international companies
specialising in logistics services, His Excellency
Dr. Abdullah Busnad, Director General of Dubai
Customs, paid an official visit to DHL facilities, one of the world’s
largest shipping and logistics companies. His Excellency was
accompanied by a high-level delegation of officials from the
Department. His Excellency and his accompanying delegation
were received by Mahmoud Haj Hussein, General Manager of
DHL Express in the UAE, and several managers and officials
from the company.
The visit aimed to explore ways to enhance cooperation
and develop mechanisms to support logistics operations in
the Emirate of Dubai in line with the Emirate’s vision and
global leadership in the trade sector. The company provided
a comprehensive presentation on its work system and the
technical and operational infrastructure it relies on to facilitate
and accelerate shipping and transportation operations, along
with a detailed explanation of the global service lines on
which the company relies in managing intercontinental trade
traffic, especially e-commerce shipments.
During the visit, His Excellency the Director General of
Dubai Customs emphasised that cooperation with leading
companies such as DHL is a key factor in supporting Dubai’s
competitiveness as a global hub for trade and logistics
services, noting that Dubai Customs is constantly working
to develop a flexible and fast customs environment that
complies with the highest international standards.
His Excellency added that the partnership with the private
sector enhances the emirate’s ability to attract more
investments and increase the efficiency of supply chain
operations, especially in light of the rapid growth in
e-commerce and air and sea freight traffic.
This visit is part of a series of field visits conducted by His
Excellency Dr. Abdullah Busnad, Director General of Dubai
Customs, to strengthen communication with strategic
partners, follow up on field developments, and to reaffirm
Dubai Customs’ commitment to supporting the trade
ecosystem and facilitating business in line with the emirate’s
vision of strengthening Dubai’s position as a leading global
trade and logistics hub.
REGIONAL NEWS
Dubai Customs’ Director General, His Excellency Dr. Abdullah Busnad, toured DHL UAE facilities with
a high-level delegation.
LOGISTICS NEWS ME | JANUARY 2026 | 13
WWW.CBNME.COM
Page 14
FLYADEAL OPENS EXPANDED OPERATIONS CONTROL CENTRE
f
lyadeal, Saudi Arabia’s fast-
growing low-cost airline, has
opened its new expanded
operations control centre in
a ribbon-cutting ceremony
officiated by His Excellency
Eng. Saleh bin Nasser Al-
Jasser, Saudi Minister of Transport and
Logistics Services, and Chairman of
the airline’s parent Saudia Group.
His Excellency Eng. Ibrahim Al-Omar,
Saudia Group Director General and
flyadeal Chairman, was joined by
flyadeal Chief Executive Officer Steven
Greenway in welcoming His Excellency
to
mark
yet
another
significant
milestone for the budget carrier.
Located
at
flyadeal’s
Jeddah
headquarters, the new standalone
Integrated
Operations
Control
Centre (IOCC) – with a four times
bigger capacity – offers additional
operational monitoring screens and
greater space to accommodate a
growing team in line with the airline’s
expansion plans.
As the nerve centre of any airline,
the IOCC is responsible for managing,
dispatching and monitoring daily
flights; coordinating crew resources
and
aircraft
maintenance;
and
importantly, responding to disruptions
while prioritising operational safety
and punctuality at all times.
flyadeal now consistently operates up
to 250 scheduled flights daily, recently
crossed the 10 million mark for annual
passengers carried for the first time
this year, and has recorded the best
On-Time Performance for punctuality
of any Middle East low-cost airline for
11 consecutive months. flyadeal is also
the region’s fastest-growing carrier.
Steven Greenway, flyadeal CEO said:
“An absolute honour having Their
Excellencies Eng. Saleh bin Nasser
Al-Jasser and Eng. Ibrahim Al-Omar
visit flyadeal’s Jeddah headquarters
to officially open our brand new
operations facility.
“The Integrated Operations Control
Centre is the airline’s heartbeat,
the centralised command unit, the
main decision-maker to implement
contingencies,
and
the
unsung
hero that makes an airline tick.
Not often talked about, the IOCC
ensures schedules are maintained
in coordination with airports across
our network for what is a complex
and disciplined process involving the
management, tracking and resourcing
of flights 24/7.”
Greenway added: “Reaching the size
we are today, now operating up to
250 daily departures for the first time
since our very first flight in 2017, and
expansion focused on increasing our
international footprint over the next
few years, we needed a facility and
environment fit for purpose.”
flyadeal operates scheduled flights
from bases in Riyadh, Jeddah and
Dammam to more than 30 domestic
and international seasonal and year-
round destinations in the Middle East,
Europe, North Africa and South Asia
with a modern fleet of 43 Airbus A320
family aircraft. The airline’s network
and fleet will exceed 100 cities and
aircraft respectively by 2030.
Effective 1 January 2026, flyadeal will add Madinah as its fourth operational base in the
Kingdom.
REGIONAL NEWS
flyadeal now consistently operates up to 250 scheduled flights daily
14 | LOGISTICS NEWS ME | JANUARY 2026
WWW.CBNME.COM
Page 15
KEETA OFFICIALLY LAUNCHES ON-DEMAND FOOD DELIVERY
OPERATIONS IN BAHRAIN
I
n the presence of His Excellency
Mr. Abdulla bin Adel Fakhro,
Minister
of
Industry
and
Commerce, and His Excellency
Mr. Ni Ruchi, Ambassador of
the People’s Republic of China
to the Kingdom of Bahrain, Keeta
officially announced the launch of its
on-demand food delivery operations
in the Kingdom of Bahrain. The
platform is backed by Meituan, a global
technology company specialising in
digital services.
The announcement was made during
an official launch ceremony held in
the capital, Manama, attended by
senior officials, representatives of
relevant entities, and members of the
business and restaurant community.
The event underscored the importance
of public–private sector collaboration
in supporting economic development
and
expanding
the
adoption
of
advanced digital solutions across key
sectors.
Keeta’s entry into the Bahraini market
forms part of its regional expansion
strategy, following the launch of its
services in the Kingdom of Saudi
Arabia, the United Arab Emirates,
Kuwait, and Qatar. This expansion
reflects
confidence
in
Bahrain’s
attractive investment environment,
advanced digital infrastructure, and
supportive regulatory frameworks.
The company stated that the launch
of its operations in Bahrain aligns with
its vision of providing efficient and
reliable delivery services that enhance
the
consumer
experience,
while
supporting local restaurants through
long-term
strategic
partnerships
aimed
at
improving
operational
performance
and
achieving
sustainable growth.
Keeta’s services are powered by
advanced
technological
systems
supported by Meituan, which analyse
multiple
factors
including
traffic
conditions, delivery distance, and
order characteristics. These systems
enhance the accuracy of delivery time
estimates and support adherence
to
service
commitments,
while
reinforcing principles of transparency
and service quality through clear
compensation mechanisms in cases
where delivery timelines are not met.
To mark the launch, Keeta announced
a range of introductory promotional
offers, including meal discounts and
free delivery at selected partner
restaurants,
without
subscriptions
or additional fees. These offers are
designed to enable users to experience
the platform through a clear and
seamless service model.
The company also confirmed that
it has invested in establishing a
comprehensive
local
operational
framework in Bahrain. This includes an
adequate network of delivery riders,
defined service standards, and a
dedicated local support team backed
by a 24/7 customer service centre. For
restaurant partners, Keeta applies an
integrated support model covering
onboarding, daily operations, and
performance enhancement, supported
by data analysis and continuous
collaboration.
Backed by Meituan, the launch underscores Bahrain’s growing role as a hub for technology-enabled
innovation and international partnerships.
REGIONAL NEWS
LOGISTICS NEWS ME | JANUARY 2026 | 15
WWW.CBNME.COM
Page 16
Originally written by Dr. Shereen Nassar.
Edited by Aya Zhang.
Dr. Shereen Nassar,
Global Director of Logistics Studies and Director of
MSc Logistics and Supply Chain Management Suite at
Heriot-Watt University Dubai
T
he logistics industry
across the UAE
and
the
wider
MENA region is
undergoing
a
pivotal transition.
Once
defined
p r i m a r i ly
by
its
geographic
advantage at the crossroads of major
global trade routes, the region has
evolved into a highly interconnected
logistics ecosystem. Today, ports,
airports, free zones, digital trade
environments,
and
last-mile
distribution networks operate as a more
coordinated and strategically aligned
system than ever before. This evolution
stems from sustained infrastructure
EXPERT INSIGHT
A Logistics
Industry
Outlook for
the UAE
and MENA
Region
As infrastructure
investment, e-commerce
growth, and sustainability
regulation reshape supply
chains, the UAE and wider
MENA region are entering
a decisive new phase in
logistics development.
investment, the rapid growth of online commerce,
and policy reforms aimed at streamlining trade and
integrating transport modes. This supports the projected
growth of the UAE logistics market from $30 billion in
2023 to $40 billion in 2028 (Ken Research, 2024). Other
indicators of this progress are increasingly visible: DP
World, for example, reported record-breaking container
activity in 2024 and carried that momentum into 2025,
underscoring continued strength in handling volumes
and asset utilisation.
Three forces are shaping the current industry trajectory:
shifts in demand patterns, ongoing modernisation of
physical and digital infrastructure, and the growing
emphasis on sustainability and resilience.
The first and arguably most influential driver is demand.
E-commerce remains the dominant catalyst reshaping
logistics planning across the region. The UAE’s online
16 | LOGISTICS NEWS ME | JANUARY 2026
WWW.CBNME.COM
Page 17
A Logistics Industry Outlook for the UAE and MENA Region
retail sector expanded notably in 2024
and is forecast to accelerate over the
medium term. This surge has amplified
cross-border parcel flows, increased the
complexity of returns processing, and
heightened demand for technologically
advanced fulfilment spaces. With
consumers expecting faster and more
reliable delivery, pressure on last-mile
networks has intensified, presenting
both operational challenges and value-
creation opportunities for logistics
operators and digital solution providers.
Physical and digital Infrastructure
constitutes the second major theme.
Globally, infrastructure investment is
critical, with many countries focusing
on modernising transport networks
to support logistics. This places the
UAE, Saudi Arabia, and other MENA
countries in a unique position, allowing
them to rapidly expand their logistics
capabilities, unlike in developed
regions, where ageing infrastructure
poses challenges. Public and private
stakeholders continue to invest in
multimodal connections, warehousing
capacity, and port efficiency. Key hubs,
including Dubai and Abu Dhabi, as well
as Jebel Ali Free Zone, are expanding
automated terminal infrastructure
and enhancing digital trade platforms,
alongside major gateways in Saudi
Arabia, Egypt, and Morocco. Dubai
Trade’s transition toward fully paperless
processes, for instance, has reduced
administrative overheads, shortened
clearance times, and contributed
to lower emissions across the trade
ecosystem. These reforms are improving
reliability and predictability across
supply chains.
Technology and automation continue
to drive sectoral change. The logistics
sector in the UAE and MEA is rapidly
adopting advanced technologies
such as AI, IoT, and blockchain to
improve efficiency and transparency
in supply chains. The region is also
focusing on smart logistics solutions
to enhance operational capabilities.
Across the region, logistics players are
piloting robotic systems, advanced
terminal automation, and autonomous
delivery solutions. From automated
container-handling equipment to
robotics-enabled fulfilment centres and
smart-city delivery pilots, the region
is positioning itself as a testbed for
next-generation logistics technologies.
Dubai’s
initiatives
to
enable
autonomous heavy vehicle trials on key
freight corridors highlight the regulatory
commitment to shaping the future of
mobility in logistics. These pilots are
intended to support long-term shifts in
cost structures, safety outcomes, and
environmental performance.
The third significant theme in the
logistics industry is triggered with the
increasing demand for sustainability.
Sustainability has become more
strategic in relevance to the logistics
industry. More logistics regulations
will emerge globally. Regulations
related to emissions and fuel efficiency
will significantly impact the logistics
industry. For example, “The expansion
of EU Emission Trading System (EU-ETS)
and FuelEU Maritime will mean that
shipping lines face rising costs, which
will impact logistics plans.” Regulations
on carbon emissions are included in
“UAE Federal Decree-Law No. 11 of
2024.” The law targets the management
and reduction of GHG emissions in
logistics, among other sectors. The laws
provide countries like the UAE with
a framework for addressing climate-
related environmental issues. Failure to
comply with this law will result in severe
penalties ranging from AED 50,000 to
LOGISTICS NEWS ME | JANUARY 2026 | 17
WWW.CBNME.COM
Page 18
AED 2,000,000. In case of repeated offences, it could
be doubled,” KPMG in 2024.
Addressing compliance with these growing
sustainability regulations should be done with
consideration for managing disruption from
geopolitical risks in the region. Organisations must
mitigate risks while ensuring operational efficiency.
To foster ongoing industry growth while navigating
challenges, five strategic priorities should inform
future policy and action.
1.
Advance multimodal connectivity
Deeper integration of ports, rail, road, and air
freight systems will be essential. Enhancing
multimodal corridors reduces exposure to
bottlenecks and strengthens supply chain
continuity, particularly in light of recurring
maritime and geopolitical disruptions affecting
routes such as the Red Sea and Suez Canal.
2.
Accelerate digital trade interoperability
Expanding single-window platforms, scaling
electronic documentation, and enabling
interoperable customs data will drive down
transaction costs and reduce dwell times. Public–
private coordination around data standards
and API frameworks will be fundamental to
reinforcing the region’s competitive advantage in
logistics efficiency.
3.
Reimagine urban last-mile delivery
As regional cities grow denser, urban logistics
must evolve. Solutions such as consolidation
hubs, micro-fulfilment centres, parcel locker
networks, and low-emission delivery fleets
can decompress congestion and improve
reliability. Integrating logistics considerations
into municipal planning will help reduce
environmental and social impacts.
4.
Strengthen workforce capabilities and
regulatory agility
The shift toward automation and digitalisation
demands new competencies in data
analytics, software integration, and robotics
maintenance. Partnerships between industry,
government, and higher education will
be crucial for upskilling. At the same time,
regulatory frameworks must accommodate
innovation, such as autonomous vehicle
technologies, while ensuring safety and
supporting workforce transitions.
5.
Embed sustainability and resilience.
The movement toward net-zero operations
requires targeted investment in energy-
efficient port assets, greener fleets, and
sustainable warehousing. Simultaneously,
enhanced resilience planning against cyber
threats, climate risks, and geopolitical supply
chain shocks must become integral to
corporate strategy. Expanding routing options
and improving inventory transparency
are prudent steps that raise system-wide
resilience.
For logistics businesses, the implications are clear.
Companies that pair upgraded physical assets
with strong digital capabilities, customer-focused
fulfilment solutions, and sustainable operations
will be best positioned to capture future growth.
Investors in specialised real estate such as
cold-chain facilities or automated warehouses
will benefit from shifting fulfilment models. Yet
challenges remain, including potential asset
overcapacity, rising capital costs, regulatory
fragmentation across markets, and ongoing
geopolitical volatility.
The UAE and the broader MENA region have
reached a point at which logistics is no longer
merely a facilitator of trade but an independent
strategic industry. The convergence of e-commerce
expansion, advanced digital platforms,
infrastructure upgrades, and technological
adoption creates a robust foundation for the next
decade. Realising this potential, however, requires
intentional policy choices, coordinated multimodal
investment, a skilled workforce, and a steadfast
commitment to sustainability and resilience. For
industry leaders and academics alike, the coming
years offer a unique opportunity to shape logistics
systems that are more efficient, greener, and more
inclusive than ever before.
EXPERT INSIGHT
18 | LOGISTICS NEWS ME | JANUARY 2026
WWW.CBNME.COM
Page 19
www.GlobalRELeaders.com
For Commercial Opportunities
Joaquim D’Costa
+971 50 440 2706
jo@bncpublishing.net
For Editorial Opportunities
Vibha Mehta
+971 58 631 4145
vibha@bncpublishing.net
Roma Arora
roma@bncpublishing.net
Nominate
Now
February 6, 2026
Jumeirah Carlton Tower, London, United Kingdom
AWARDS
Page 20
MARITIME
Photo credits: © Francis Demange.
Alain Thébault,
CEO of Fly-Box
20 | LOGISTICS NEWS ME | JANUARY 2026
WWW.CBNME.COM
Page 21
Using the Sea as a Fast Lane
What problem does Fly-Box solve for ports
today?
Ports deal with two hard challenges: move more
containers, faster and more agile, while cutting
CO2 drastically. Many express short distance
moves inside port areas or between nearby
ports end up on trucks as the default option.
It feels simple because you load once, you
drive, you unload, done. But the side effects
are getting harder to accept, both for the real
total transit time and for the footprint: gate
congestion, queues, noise, local air pollution,
and dependency on drivers.
On the water, classic feeders are great for
volume, but not reactive. They run fixed
schedules and often wait to fill, it’s impossible
for express needs. Barges could be more
flexible but they can’t face open sea segments.
Fly-Box is a fast, low-emission container
shuttle designed to operate in open sea
conditions with automation rooted in its
software design. It uses the sea as an extra
lane for express single moves. It empowers
underused waterfronts to reduce pressure
on the main terminal and gates, and bring
containers closer to their final destination, keeping
trucks for a true last-mile job.
How is a Fly-Box route faster or cheaper than
using trucks or feeder ships?
We reduce waiting time in port and shuttle time on
routes. We do not compete against inland barges.
We operate on coastal open sea legs. Versus trucks,
we can win when gate congestion is high and the sea
route is direct while the road route is long, tortuous,or
regularly jammed. Our full-scale platform targets 1 ×
as a Fast Lane
Using the Sea
Fly-Box CEO Alain Thébault explains why existing port
transport models no longer meet express demand, and how
automated coastal shuttles could offer ports a faster, cleaner
alternative for short-distance container moves.
LOGISTICS NEWS ME | JANUARY 2026 | 21
WWW.CBNME.COM
Page 22
40 ft on a ~20 m craft, cruising around 25 kn (about 45
km/h), for routes up to 150 nm (about 250 km).
On costs, early work suggests that on premium
express service when we are radically faster in total
time from A to B, our OPEX can catch up because the
asset can rotate more. Also, time savings are not linear
with price: on specific routes and for time-sensitive
products, twice faster can justify way more than
twice the cost. We are running a techno economic
assessment to model total cost per move, including
energy, port fees, maintenance, and crewing, plus the
real savings from avoiding congestion and reducing
idle time. One point that matters a lot for ports is
infrastructure: we offer low-CAPEX port interfaces. A
small quay plus a reachstacker and you can operate.
This can generate value from underused port zones
that do not produce much today and most port
operators look at how to intensify their
operations, without new land consumption.
Finally, our solution truly scales when
automation comes into the game. Naval
drones are progressing fast and the sea is a
less crowded environment than roads. We
believe container shuttles can progressively
move from 1 unit = 1 pilot, to several units in
a platoon supervised by one pilot, and then
toward remote control with a control tower.
Which types of ports benefit most from
Fly-Box and why?
The best fit is a major hub where inter-
terminal transport (ITT) has become a real
bottleneck and hubs surrounded by multiple
secondary ports within a few hours of
navigation, especially where roads around
terminals are structurally saturated. Dense
coastlines, gulfs, deltas, and industrial port
clusters are typical sweet spots.
The Gulf is a natural beachhead market for
our solution: many ports fall within Fly-Box
range, road congestion is severe with strong
political pressure to regulate truck flows, and
there is a clear appetite for innovation. Sea
and weather conditions can also support
operations on most days of the year. We have
already established very positive contacts
there with port operators, port authorities,
political networks, and shipbuilding
providers.
As said, Fly-Box is designed for simple
infrastructure: shallow-draft access, a
short quay, and standard cargo-handling
equipment such as a reach stacker. That
opens up underused waterfronts inside large
ports, and can also reactivate smaller ports
that lost container calls over time, including
ports that never considered handling
containers. We also see strong interest
from island regions where logistics are
complex and expensive. In places such as the
Maldives, faster and more agile sea logistics
can be a real game changer, and traction is
strong in these niche markets as well.
What does success look like at the end of
your current industry assessment?
Success means we end the assessment with
an operator-grade view of operations and
business, not just a concept story. It consists
MARITIME
“Fly-Box is
a fast, low-
emission
container
shuttle designed
to operate
in open sea
conditions with
automation
rooted in
its software
design.”
22 | LOGISTICS NEWS ME | JANUARY 2026
WWW.CBNME.COM
Page 23
of a shortlist of priority routes with
volumes, service-level targets, constraints,
and port interfaces. Also a clear model
with CAPEX and OPEX for the operator,
including a port integration plan (how we
connect with TOS and planning tools, how
container handover works, with safety
procedures, energy and maintenance
setups). If the assessment ends with one
corridor where the numbers make sense
and the execution plan is realistic, we
believe this will naturally trigger the next
stage.
How much can operators realistically
cut emissions by shifting cargo to Fly-
Box?
It depends on what you replace and
how you power the vessel, so we avoid
one magic percentage. The platform is
designed to be fully electric for ITT-type
operations, so on corridors where ports can
supply low-carbon electricity,
operational emissions can drop
sharply. For longer routes and
early deployments, we also
consider hybrid architectures,
and operators can choose their
own balance between cost and
footprint. What is clear is that
hydrofoils reduce drag, which
reduces energy demand.
Our design direction targets
about 30%–40% less energy
than a conventional barge hull
for comparable payload on the
same route, with the additional
benefit of keeping speed and
schedule in moderate open
sea (up to 1.5 m wave height).
But the honest answer is route
by route: electricity mix, port
dwell time, truck detours, and
the replaced mode all matter.
The purpose of the current
assessment is also to quantify
emissions with an operator-
grade methodology that can be
used in ESG reporting.
When will Fly-Box move
from pilots to commercial
operations?
We made our 8m demonstrator
take off on Lake Geneva this
fall. Next steps are phased:
complete
the
industry
assessment and lock pilot
routes, while upgrading our
demonstrator to its next
version with more autonomous
and
remote-operation
features. A big part of our
value is in software. We then
aim to secure the funding
to build the first 2 full-scale
units and run pilots with an
operator under real conditions.
Commercial operations come
after successful pilots and the
normal certification path, not
before. If funding and industrial
execution stay on track, we
believe pilots can start in the
18–24 month window after we
freeze the full-scale design.
Using the Sea as a Fast Lane
LOGISTICS NEWS ME | JANUARY 2026 | 23
WWW.CBNME.COM
Page 24
COVER STORY
A New Force
in Light Duty
With the launch of the Kuzer in the UAE, UD Trucks targets the heart of
urban distribution, where uptime, flexibility, and everyday performance
matter most
24 | LOGISTICS NEWS ME | JANUARY 2026
WWW.CBNME.COM
Page 25
A New Force in Light Duty
U
rban logistics in the UAE is changing
rapidly. As cities grow denser and
delivery windows tighten, fleet
operators are under mounting
pressure to do more with less, less
time, less space, and less margin
for downtime. In this environment, light-duty
trucks are no longer supporting players. They are
becoming the backbone of last-mile distribution,
municipal services, retail replenishment, and
construction support.
It is into this space that UD Trucks has introduced
the new Kuzer, marking the brand’s formal
entry into the UAE’s light-duty segment and
completing its commercial vehicle portfolio
across light, medium, and heavy-duty operations.
The launch reflects more than a product
expansion. It signals a deliberate response to how
goods move through modern cities, and what
fleet operators now demand from vehicles that
operate at the sharp end of daily logistics.
Designed for the realities of urban operations
The new Kuzer has been developed to meet
the operational realities of urban and regional
distribution, where stop-and-go driving, tight
access points, and long operating hours define
performance expectations. Offered in 6.5-ton,
7.5-ton, and 8.5-ton GVW variants, the truck
gives operators flexibility across a wide range of
applications, from FMCG distribution and retail
delivery to service and municipal use.
Depending on configuration, the Kuzer is powered
by either a 3.0-litre or 5.2-litre Euro 4-compliant
engine, paired with a six-speed manual or
Automated Manual Transmission. This drivetrain
setup is engineered to balance payload capability
with fuel efficiency, particularly in congested
urban environments where smooth drivability
and reliability directly affect operating costs.
Compact exterior dimensions and a maximum
overall height of up to 2,294 mm support
manoeuvrability and visibility in dense city
settings. Multiple wheelbase and rear frame
configurations allow the Kuzer to accommodate
a broad range of body types, with body lengths
ranging from 4,300 mm to 6,130 mm. This
adaptability positions the truck as a versatile
platform rather than a single-purpose vehicle.
A cab built for long days
For drivers, light-duty trucks often mean long
hours, frequent stops, and high fatigue levels.
UD Trucks has placed clear emphasis on comfort
and usability in the Kuzer’s cab design. Climate
control, an adjustable tilt and telescopic steering
column, and a clear instrument cluster contribute
to a working environment that supports focus
and consistency throughout the day.
Practical in-cab features including USB charging
ports, a 24-volt power outlet, cup holders, and
durable seating are designed around real-world
usage rather than showroom appeal. The result
is a cab that supports productivity without
unnecessary complexity.
Safety and durability as standard priorities
Safety remains central to the Kuzer’s design
philosophy. The truck is equipped with Anti-lock
Braking System, traction control with Anti-Slip
Regulator, and Electronic Brakeforce Distribution.
LOGISTICS NEWS ME | JANUARY 2026 | 25
WWW.CBNME.COM
Page 26
Driver and passenger airbags are
available as an option, reinforcing
a layered approach to safety.
Additional features such as a
reverse buzzer, steering lock, and
central locking enhance operational
security, particularly in high-
frequency delivery environments.
To support durability in demanding
conditions, the Kuzer is fitted with
front and rear fog lamps, an HD air
filter with pre-cleaner, fuel pre-
filter, fuel tank lock, electric disc
horn, and position lamps.
These elements reflect a vehicle
designed not just to perform
on launch day, but to withstand
the cumulative wear of daily
commercial use.
A full-range offering, backed
locally
The introduction of the Kuzer
completes UD Trucks’ model
range in the UAE, spanning light-duty,
medium-duty through the Croner, and
heavy-duty through the Quester. This full-
spectrum offering allows fleet customers
to standardise across vehicle classes
while remaining within a single brand
ecosystem.
Crucially, the launch is supported by UD
Trucks’ long-standing UAE partners, Al
Masaood CV&E and United Diesel, part of
the Al Masaood Group and Al Rostamani
Group respectively. Together, they bring
more than six decades of local commercial
vehicle experience, providing nationwide
sales, service, and parts support.
Over the past two years, extensive
preparation has gone into building the
infrastructure required to support the
Kuzer, from technician training to parts
availability. This groundwork underpins
the brand’s emphasis on uptime, a critical
metric for light-duty fleet operators.
After-sales as a strategic differentiator
Beyond the vehicle itself, UD Trucks is
positioning after-sales support as a core
part of the Kuzer proposition. The truck
“The
introduction
of the new
Kuzer marks
a truly
significant
milestone for
UD Trucks in
the UAE.”
Mourad Hedna
President of
UD Trucks MEENA
COVER STORY
26 | LOGISTICS NEWS ME | JANUARY 2026
WWW.CBNME.COM
Page 27
A New Force in Light Duty
comes with a competitive warranty of three
years or 150,000 kilometres, whichever
comes first. Customers also gain access to
UD Genuine Parts, covered by a standard
two-year fitted parts warranty.
UD Trust maintenance plans offer fixed
pricing, priority service scheduling for
fleet customers, and roadside assistance.
Service support has been structured
specifically for light-duty operations, with
quicker response times and flexible walk-in
servicing options designed to minimise
disruption.
This focus reflects an understanding that
in light-duty logistics, downtime carries an
outsized cost.
A strategic milestone
“The introduction of the new Kuzer marks
a truly significant milestone for UD Trucks
in the UAE,” said Mourad Hedna, President
of UD Trucks MEENA. “A strategic market
for us with its well-connected network and
rapidly developing infrastructure, the UAE
demonstrates a strong demand
for reliable and robust light-duty
trucks.”
“With the Kuzer, we now have a
complete range offering from 6T
to 100T. Along with our trusted
partners, we are proud to keep
supporting UAE prosperity and our
customers’ success.”
As urban logistics continues to
evolve, the role of the light-duty
truck is being redefined. With the
Kuzer, UD Trucks is making a clear
statement of intent, entering the
segment not as a peripheral player,
but as a serious contender focused
on productivity, reliability, and long-
term fleet value.
For UAE operators navigating tighter
delivery windows and growing urban
complexity, that proposition arrives
at a timely moment.
“With the
Kuzer, we
now have a
complete range
offering from
6T to 100T.
Along with
our trusted
partners, we
are proud
to keep
supporting UAE
prosperity and
our customers’
success.”
LOGISTICS NEWS ME | JANUARY 2026 | 27
WWW.CBNME.COM
Page 28
FOOD TRADE
From drones to digital
supply chains, the way food
moves globally is evolving.
Climate, tech, and changing
consumer habits are
forcing logistics to rethink
speed, sustainability, and
resilience.
T
he
global
food
trade is entering
one of its most
transformative eras.
Climate change and
evolving consumer
expectations
are converging to redefine how
nations produce, move, and secure
their food. At the same time, new
technologies and trade policies
are opening pathways toward
greater transparency, efficiency, and
resilience.
Navigating this complex landscape
requires a delicate balance between
domestic production, regional
collaboration, and technological
innovation, all while adapting to
shifting global trade regulations,
market access challenges, and
sustainability imperatives. Key
strategies for this include investing
in modern infrastructure, fostering
technological
innovation
in
agriculture, and building collaborative
platforms for food security and
innovation.
Reflecting these key trends, the
upcoming global event Gulfood 2026,
scheduled to be held in Dubai from
January 26 to 30, 2026, will provide a
platform for dialogue and collaboration
on the future of food trade. The event
will bring together global policymakers
and leaders to explore how innovation,
sustainability, and trade diversification
can work in tandem to build resilient
food trade systems. The central theme
will be food security as a global priority,
a topic that is set to spark discussions
among industry figures, decision-
makers, and investors.
In addition, the event’s Grocery Trade
Zone, a dedicated sourcing platform
for high-volume private label and
FMCG products from around the world,
will offer companies a significant
opportunity to expand their portfolios
and forge new partnerships that meet
NAVIGATING FUTURE OF
FOOD TRADE AMID GLOBAL
TRANSFORMATION
28 | LOGISTICS NEWS ME | JANUARY 2026
WWW.CBNME.COM
Page 29
Navigating Future of Food Trade Amid Global Transformation
rising demand for cost-effective, high-quality
consumer goods.
Redefining Resilience: Trade, Policy, and
Innovation
According to the Agricultural & Food Markets:
Trends & Prospects 2025-2034 report (July
2025) by the Organisation for Economic
Co-operation and Development (OECD) &
Food and Agriculture Organisation (FAO),
global food and agricultural trade reached $1.9
trillion in 2023, underscoring the integral role
of trade in linking producers and consumers
worldwide. As food security becomes a
top national priority, many countries are
adopting protectionist policies alongside
efforts to build regional resilience through
robust collaboration and diversified sourcing
strategies.
Technology: Backbone of Food Systems
Technological innovation is rapidly becoming
the cornerstone of future-ready food
systems. For instance, precision agriculture
utilises AI-driven farming, robotics, and the
Internet of Things (IoT) to optimise water
and nutrient use, reduce waste, and improve
yields. Furthermore, blockchain technology is
revolutionising traceability and transparency
in supply chains, allowing stakeholders to
ensure food safety and strengthen consumer
trust.
In the Thomson Reuters Institute’s supply
chain survey, 52% of trade professionals
stated that they had been impacted by
cross-border dynamics and retaliatory
tariffs impacting export control laws, while
74% cited challenges related to supply
chain due diligence. These disruptions are
prompting greater investment in digital tools
and automation to reduce costs, improve
efficiency and risk management, and drive
decision-making, even as many organisations
proceed cautiously with generative AI
adoption across their operations. Growing
investment in alternative protein sources,
such as plant-based and lab-grown meats,
also reflects a shift toward more sustainable
diets and reduced environmental impact.
Climate, Sustainability, and Changing
Rules of Trade
Climate change continues to exert profound
pressure on global food supply chains.
Extreme weather and water scarcity are
intensifying volatility in the food sector, while
consumers and regulators alike demand more
sustainable and ethically produced food.
Future trade policies are increasingly shaped
by environmental standards, carbon footprint
regulations, and circular economy principles.
Nations and businesses are being challenged
to reduce emissions from long-distance
transport, promote low-impact ingredients,
and invest in regenerative agriculture and
waste reduction strategies.
A white paper by the Stockholm Environment
Institute (SEI) and Mistra Geopolitics
highlights how cross-border dynamics and
climate risks are directly impacting food
production and trade, posing significant risks
to global food security. In response to this,
the study urges governments to strengthen
national production, encourage resilient
agriculture, minimise food waste, and enhance
cooperation.
Toward Collaborative and Secure Food
Systems
To thrive in this new era, countries must
take a multi-faceted approach, investing
in resilient infrastructure, strengthening
domestic agricultural capacity, diversifying
supply chains, enabling tech-driven farming,
and building balanced trade partnerships that
align with evolving consumer preferences for
healthier and sustainable diets. Businesses
are being challenged to rethink traditional
models and build more resilient, sustainable
strategies for the future. Cross-border
collaboration, regulatory adaptability, and
continuous innovation will be essential to
ensuring stable, equitable, and future-ready
food systems.
As 2026 approaches, the food industry is at
a critical juncture, driven by challenges of
rising tariffs, stricter sourcing requirements,
evolving food security standards, and new
trade frameworks. Success will hinge on
strategic adaptation, including diversifying
suppliers, fostering resilient supply chains,
and prioritising sustainability and ethical
practices to meet changing consumer and
regulatory demands.
LOGISTICS NEWS ME | JANUARY 2026 | 29
WWW.CBNME.COM
Page 30
TRANSPORT
Vikas Sardana
on leadership,
technology, and
why modern rail
networks must
move in rhythm
with people, not just
schedules.
S
ince September 2021,
Keolis MHI — a joint
venture led by global
transport operator Keolis
together with Mitsubishi
Heavy Industries Engineering and
Mitsubishi Corporation — has
been responsible for operating
and maintaining the Dubai Metro
and Tram networks under a multi-
year contract with the Roads &
Transport Authority (RTA). The
company oversees one of the
world’s longest fully automated
metro systems, including the Red
and Green lines, as well as the
city’s tram network, delivering
high standards of safety,
punctuality and passenger
experience while supporting the
emirate’s smart mobility goals.
In this interview, Vikas Sardana,
Acting
Managing
Director
of Keolis MHI, reflects on the
organisation’s
leadership
philosophy, its approach to
innovation and sustainability,
and how advanced technologies
and a passenger-centric culture
are shaping the future of rail
transport in Dubai.
How would you define your
leadership vision for guiding
the rail transport network
at this pivotal stage of its
development?
Our vision is built on a clear
principle: to make the transport
ecosystem
smarter,
more
sustainable, and more deeply
connected to people’s daily lives.
We are not simply operating trains
and stations-we are redefining
the role of public transport in the
city so that it becomes a natural
part of the urban rhythm and a
seamless element of everyday
mobility.
We adopt a “think like a
passenger” culture, meaning that
every operational or technical
decision starts with the user’s
needs-comfort, convenience, and
safety.
How does the partnership
between Keolis and Mitsubishi
Heavy Industries translate
into day-to-day performance
across your projects?
This partnership brings together
world-class operational expertise
and engineering excellence.
Keolis contributes extensive
global experience in managing
the networks, while Mitsubishi
Heavy Industries brings deep
ON TRACK
FOR A
SMARTER CITY
30 | LOGISTICS NEWS ME | JANUARY 2026
WWW.CBNME.COM
Page 31
On Track for a Smarter City
Vikas Sardana,
Acting Managing Director Keolis MHI
technical and engineering
capabilities, having been
involved in the development
of the core infrastructure
from the start. This synergy
results in operations that
meet the highest standards of
safety and quality, meticulous
maintenance, and data-driven
asset management-ensuring
exceptionally high availability,
reliability, and overall network
harmony.
What makes the Keolis–MHI
team the backbone of your
success?
Our people are our true
success factor. We rely on
over 1,700 well-trained
professionals, equipped with
the competencies needed
to run a modern mobility
system, and guided by a
culture that places safety
first and the passenger at the
center of every operational
decision. We also place strong
emphasis on Emiratisation,
having successfully attracted
and trained young Emirati
talents, including field and
administrative leaders. This
reflects our commitment to
supporting the national vision
of building local expertise in
one of the most sensitive and
significant sectors.
What makes the passenger
experience in this system
more than just a means of
transportation?
Air-conditioned stations,
punctual services, seamless
integration
with
buses
and marine transport, and
the speed and fluidity of
movement all create a calm,
safe, and reliable travel
experience.
Our goal is for every user to
feel that their trip is part of
a city run professionally and
LOGISTICS NEWS ME | JANUARY 2026 | 31
WWW.CBNME.COM
Page 32
patterns and forecast
peak-hour demand.
This allows us to adjust
train
distribution,
refine timetables, plan
ma i n t e na nc e,
a nd
continuously enhance the
passenger experience. It
is a system that makes
operations more agile and
more capable of adapting
to the needs of a fast-
growing city like Dubai.
What are the biggest
challenges you face in
managing a network of
this scale and precision?
The main challenge is
maintaining
perfect
alignment
between
technical performance and
the passenger experience.
Even minor disruptions can affect thousands of
passengers within minutes.
Managing a network of this size requires complex
coordination between operations, maintenance,
asset management, and workforce training-all while
strictly adhering to safety standards and ensuring
service regularity.
Is there a human moment that has stayed with
you during your daily management of the
network?
The moments that touch me most are when
passengers express their appreciation for the comfort
and safety they feel while using the metro every day.
Seeing a student, an employee, a mother with
her child, or an elderly passenger relying with full
confidence on the system reminds me that our work
is not just about running trains—it is about improving
people’s quality of life. This human dimension
accompanies me every day.
How have your previous experiences-including
your work in India-shaped the way you manage
this advanced system?
Working in countries with high population density
and complex transport systems provides valuable
TRANSPORT
designed to make their day smoother and
more organised.
Something which comes before everything
else is the safety and happiness of our
passengers, which we are focusing on in all
our activities.
What are the key technologies you rely on
to enhance safety and reliability?
The metro operates on a fully automated,
advanced train control system that ensures
precise movement and coordination. We
also employ predictive maintenance,
using continuous data streams to detect
potential issues before they occur-reducing
disruptions and extending asset life. In
addition, we adhere to strict standards for
safety, asset management, and cybersecurity,
supported by a “zero harm” policy that forms
the backbone of our operational culture.
To what extent does smart data analysis
help you understand ridership patterns
and anticipate demand?
We use advanced analytics systems that draw
near real-time data from stations and trains,
enabling us to understand daily mobility
32 | LOGISTICS NEWS ME | JANUARY 2026
WWW.CBNME.COM
Page 33
insights into managing heavy
passenger flows and long-term
planning.
These experiences helped me
develop an approach based on
operational discipline, flexibility,
risk management, and adapting
global best practices to Dubai’s
culture and the needs of its diverse
users.
How do you expect the concept
of “smart mobility” to evolve
in the emirate in the coming
years?
I believe the future will bring
greater integration between
all modes of transport, deeper
reliance on data and smart
analytics, and a shift toward a fully
connected city where different
systems operate in harmony. The
metro and tram will remain central
to this shift, supported by the
growing role of Emirati talent in
leading this vital sector.
We also expect sustainable
mobility to expand, reducing
emissions and strengthening
Dubai’s position as a global model
for environmentally friendly cities.
What message would you share
with today’s passengers about
the future of this network and
its role in urban life?
My message is simple: this network
was designed for you to make your
daily life easier, safer, and more
convenient.
Its future will be even more
advanced,
intelligent,
and
sustainable, and it will continue
to be an essential part of Dubai’s
heartbeat and its path toward
becoming the city of the future.
On Track for a Smarter City
“We invite
everyone to
embrace public
transport as
a partner in
creating better
urban living and
more connected,
human-centered
cities.”
LOGISTICS NEWS ME | JANUARY 2026 | 33
WWW.CBNME.COM
Page 34
E-COMMERCE LOGISTICS
J&T Express closes 2025 with record-breaking parcel
volumes, powered by automation, network expansion, and
unstoppable e-commerce growth.
J
&T Express, the global integrated
logistics operator, has capped 2025
with a milestone that few in the
industry can match. The company
announced that its total parcel
volume for the year surpassed 30
billion for the first time, reaching 30.13 billion,
up 22.2% year-on-year, while its average
daily parcel volume hit 82.5 million, a 22.6%
increase. The momentum carried through the
fourth quarter, where J&T delivered 8.46 billion
parcels, a 14.5% increase from the same period
in 2024, averaging 92 million parcels per day.
Driving this growth were strong performances
in Southeast Asia and the company’s New
Markets, alongside consistent contributions
from China. In Southeast Asia, the fourth
quarter saw 2.44 billion parcels, up 73.6%
year-on-year, bringing the full-year total
to 7.66 billion, an impressive 67.8% increase.
Across J&T’s New Markets—Saudi Arabia, UAE,
Mexico, Brazil, and Egypt—parcel volume in Q4
reached 130 million, a 79.7% rise year-on-year,
with full-year volumes hitting 400 million,
up 43.6%. China maintained steady quality
growth, delivering 5.89 billion parcels in Q4,
with a full-year total of 22.07 billion, marking
an 11.4% increase.
Beyond the raw numbers, J&T Express invested
heavily in infrastructure and operational
efficiency to support this expansion. The
company strategically optimised its network
partners and outlets across markets, while
upgrading sorting centers to streamline
operations. In China, automation and cloud
warehouse initiatives accelerated, resulting
in a 26% increase in automated equipment
by year-end compared to June, alongside the
deployment of 1,000 unmanned vehicles to
enhance last-mile delivery efficiency.
Reflecting on the year, Charles Junyi Hou,
Group Vice President of J&T Express, said:
“Benefiting from the rapid development of
e-commerce and a diversified customer base,
J&T maintained robust growth in Southeast
Asia and New Markets. In China, we actively
pursue higher-quality growth, and the more
than 30 billion parcels delivered globally
by 2025 will be a new starting point for us.
Looking ahead, we will continue to strengthen
our global network, drive growth through
innovation, and consistently meet market
demands.”
With record-breaking volumes, strategic
investment in automation, and a growing
global footprint, J&T Express is not just
keeping pace with the evolving logistics
landscape—it is shaping it.
BEYOND
30 BILLION
34 | LOGISTICS NEWS ME | JANUARY 2026
WWW.CBNME.COM
Page 35
Beyond 30 Billion
LOGISTICS NEWS ME | JANUARY 2026 | 35
WWW.CBNME.COM
Page 36
AUTONOMOUS LOGISTICS
Yahyah Pandor, VP and GM – MENAT at Blue
Yonder, explains why the next phase of supply chain
transformation is not about visibility or automation,
but about AI-driven systems that can sense, decide,
and act with minimal human intervention.
Supply chain digitisation has
been on every boardroom agenda
for years, but what do you think
will define the next frontier of
transformation beyond visibility
and automation?
We’ve now reached a point where
having visibility over your supply
chain and using automation is
no longer “advanced,” it’s simply
expected. What comes next is
supply chains that can make
smart decisions on their own.
Instead of systems that only show
what’s happening or predict what
might happen, the next stage is
technology that can recommend
and take actions automatically.
Our latest Supply Chain Compass
report shows that nearly 47% of
companies are already using
machine learning and predictive
AI, while another 40% say AI is
transforming the way they operate.
This is a clear signal that the shift
from reactive to autonomous
systems is underway.
The goal is to evolve toward an
ecosystem where data continuously
informs and optimises every
decision, from sourcing to delivery.
We’re building toward a state of
continuous intelligence that allows
supply chains not only to sense and
respond but also self-correct and
learn. This is where supply chains
evolve from being responsive to
being truly self-driving ecosystems,
capable of learning, adapting, and
executing with minimal human
intervention.
Blue Yonder’s platform is built
on AI and predictive analytics,
yet true success often depends
on people using that intelligence
effectively. How do you see the
relationship between human
judgment and machine-driven
insights evolving inside modern
logistics organisations?
This is not a story of humans
versus machines, it’s about creating
THINKING FOR
THEMSELVES
WHEN SUPPLY
CHAINS START
36 | LOGISTICS NEWS ME | JANUARY 2026
WWW.CBNME.COM
Page 37
When Supply Chains Start Thinking for Themselves
symbiotic intelligence. AI
brings the scale, speed, and
precision that no human can
match, while people bring
intuition, context, and ethics.
Our research reveals that 79%
of supply chain leaders expect
AI to redefine workforce roles,
and most see its greatest
value in improving planning,
predictability, and decision-
making speed. However,
they also cite challenges
around
data
quality,
fragmented systems, and
skills development, which is
why human oversight remains
essential.
Blue Yonder’s new Cognitive
Solutions address these
barriers by unifying supply-
chain data into a continuously
learning environment powered
by AI Agents. These agents
act as specialised digital
teammates that monitor
operations, surface real-time
insights, and recommend
next-best actions based on
actual conditions. Because
users can interact with AI
Agents in natural language,
teams gain instant clarity
without needing technical
expertise, making adoption
smoother and building trust
across planning, logistics, and
operations teams.
The future lies to human-in-
the-loop systems where AI
handles the heavy data lifting,
and people focus on strategic,
ethical, and contextual
decisions that technology
alone cannot replicate.
Companies often measure
supply chain performance
by speed and cost, but
increasingly, it’s about
adaptability and foresight.
How is Blue Yonder helping
its customers in MENAT
move from efficient supply chains to intelligent
ones?
Efficiency will always matter, but the real measure
of supply chain strength today is resilience built
on foresight. Our latest Supply Chain Compass
research found that 84% of leaders are prioritising
agility and end-to-end connectivity as top
objectives for the next two years. At Blue Yonder, we
help organisations embed predictive intelligence
and autonomous decision-making through our
Yahyah Pandor,
VP and GM – MENAT, Blue Yonder
LOGISTICS NEWS ME | JANUARY 2026 | 37
WWW.CBNME.COM
Page 38
AUTONOMOUS LOGISTICS
new Cognitive Solutions, which use AI
Agents to continuously analyse data, detect
risks, and recommend or execute actions
across the end-to-end supply chain. These
solutions are built on a modern, true cloud
architecture powered by the Blue Yonder
Platform and Snowflake AI Data Cloud, with
access to a multi-enterprise network and
end-to-end interoperability that enables
unified decision-making.
The recent acquisitions of Optoro and
Pledge have expanded this ecosystem,
strengthening our returns management and
logistics emissions reporting capabilities.
Optoro’s AI-powered returns management
solution helps companies optimise the
end-to-end returns lifecycle, while Pledge
underpins our accredited logistics emissions
measurement and management as part of
everyday supply chain planning. Together,
these solutions enable businesses to evolve
toward intelligent and sustainable supply
chains, where adaptability is measurable
and continuous.
MENAT markets can be complex, fast-
growing, fragmented, and digitally
uneven. What have you learned about the
unique operational DNA of this region
that global models often underestimate
or overlook?
MENAT’s strength lies in its diversity.
You have economies that are scaling
advanced logistics and AI infrastructure
alongside frontier markets leapfrogging
38 | LOGISTICS NEWS ME | JANUARY 2026
WWW.CBNME.COM
Page 39
When Supply Chains Start Thinking for Themselves
into digital maturity, highlighting organisations’
entrepreneurship and agility.
In addition, our Compass report highlights that
collaboration and shared visibility are among the
top two enablers of transformation, especially in
regions with varied digital readiness. Due to the
region’s culture, co-creation is essential in MENAT,
and business here thrives on partnership, trust,
and alignment with government priorities. And
we’ve learned that transformation sticks when
technology adapts to culture, not the other way
around. The most successful implementations
in MENAT are those built collaboratively and
locally, rather than imported wholesale.
We often hear about “digital transformation,”
but that phrase is starting to feel
overused. What, in your view, are the most
misunderstood truths about what real
transformation actually looks like inside a
supply chain organisation?
The biggest misconception is that transformation
is a technology project when in fact, it is a
change-management journey. According to our
Compass insights, while most organisations have
a digital roadmap, many still struggle to scale
transformation due to skill gaps, legacy systems,
and cultural inertia. Meaningful change only
occurs when people, processes, and platforms
evolve simultaneously together.
At Blue Yonder, we view transformation as
a continuous process rather than a one-off
initiative. The adoption of solutions like our
AI-driven Transportation and Warehouse
Management systems shows that technology
creates value only when paired with the
right mindset and ways of working, such as
empowering employees to act on AI-driven
insights and updating company processes
to support real-time responses. Therefore,
transformation is ultimately about cultivating a culture of
adaptability, where data empowers teams to make faster,
more informed decisions. When technology aligns with
human capability and organisational purpose, that’s when
transformation becomes real, measurable, and enduring.
Looking ahead, how do you define success for yourself
and for Blue Yonder’s presence in MENAT over the next
five years?
For me, success over the next five years is defined first and
foremost by our customers’ success. I want Blue Yonder in
MENAT to be recognised not only as a technology provider,
but as a strategic partner to our customers, helping them
shape the future of supply chain intelligence in the region.
That is where Blue Yonder Services plays a critical role from
implementation and change management to continuous
optimisation, our services teams help customers turn vision
into measurable outcomes across resilience, efficiency, and
sustainability.
At the same time, our Blue Yonder advisory boards,
including our Partner Advisory Board, are central to how we
listen, co-innovate, and shape our roadmap together with
customers and partners.
“If in five years our MENAT customers can point to stronger, more
intelligent, and more sustainable operations that they built in
partnership with Blue Yonder then I would consider that a true
success for both myself and the business.”
LOGISTICS NEWS ME | JANUARY 2026 | 39
WWW.CBNME.COM
Page 40
SUPPLY CHAIN
WWW.CBNME.COM
40 | LOGISTICS NEWS ME | JANUARY 2026
Page 41
The Disruption Gap
New research from
DP World shows
that while supply
chain disruption
is now a constant
worldwide, its cost
in lost time, revenue,
and customer trust
falls far more heavily
on emerging and
growth markets.
THE
DISRUPTION
GAP G
lobal
trade
is
operating
under
permanent
strain,
with new
research
showing
that
companies in parts of the Global
South are losing months of
productivity, millions of dollars
and long-term customer trust as
supply chain disruption shifts from
episodic shock to a defining feature
of today’s operating environment.
The Without Logistics report
from DP World, based on a global
study of 680 senior logistics and
supply chain decision-makers
across eight industries and nine
regions, finds that disruption is now
commonplace. However, its impact
is deeply uneven, with firms in Sub-
Saharan Africa (SSA), the Middle East
and North Africa (MENA) and the
Gulf (GCC) experiencing the longest
downtime, the highest costs and the
most severe customer fallout.
In these regions, disruption routinely
wipes out more than a month of
operational capacity every year.
The study shows that 83% of firms
in SSA, 72% in MENA, and 61% in
the GCC lose more than a month of
operational time in years affected
by major logistics disruption,
compared with 50% of firms in North
America, 41% in Germany and 36% in
the UK.
The financial consequences
are equally stark. High-value
disruption is concentrated in the
same corridors, with nearly half of
companies in the GCC (47%) and
more than four in ten in MENA (43%)
reporting annual disruption costs
of $1 million or more. These regions
also sit at the top of the range
globally for customer complaints,
lost business and brand damage,
LOGISTICS NEWS ME | JANUARY 2026 | 41
WWW.CBNME.COM
Page 42
underlining how logistics challenges are now directly eroding
commercial performance and reputation.
Beat Simon, Chief Operating Officer – Logistics, DP World, said:
“This data shows that supply chain disruption is no longer a
temporary shock, it is a recurring drain on growth, profitability
and customer trust. In some regions, businesses are effectively
planning around the loss of weeks or months of productive
time each year.
The findings also expose two distinct disruption realities
across global industries. High-volume sectors such as retail,
healthcare and perishables are operating under near-constant
turbulence, with retail and healthcare businesses each
experiencing around 18,000 disruption events every year.
By contrast, automotive companies face fewer incidents,
but when disruption hits, the impact is far more destructive.
The average cost per disruption in automotive approaches
$1 million, with annual losses estimated at $13 billion, and
recovery times stretching far longer than in high-frequency
sectors.
The research further shows that resilience is not driven by
technology alone, but by the breadth of investment across the
supply chain. Companies that strengthen multiple logistics
capabilities, from factory logistics and inbound flows to
warehousing and digital coordination, report dramatically
lower disruption costs than peers with narrower investment
strategies. In consumer goods, firms investing in four or more
logistics areas report disruption costs around 76% lower than
low-investment competitors.
Customer pain is now close to universal. Across most regions
and sectors, 80% to 95% of respondents say logistics
disruptions have led to increased customer complaints.
However, the study shows that lasting reputational damage
is concentrated in specific markets, with Sub-Saharan Africa
and France reporting some of the highest levels of brand
impact, while firms in North America and the UK report rising
complaints but relatively more resilient brand perceptions.
Despite the scale of the challenge, the research finds rare
alignment across boardrooms and operations. More than 80%
of respondents expect logistics to become a more strategic
focus at board level, and nearly 90% agree that businesses with
resilient supply chains will significantly outperform their peers
in the years ahead.
Overall, the findings point to a clear conclusion: as disruption
becomes a permanent feature of global trade, companies
that fail to build end-to-end resilience risk falling structurally
behind, whilst those that invest decisively stand to protect
growth, customer trust and long-term competitiveness.
SUPPLY CHAIN
“What is striking, however, is
that the regions under the most
pressure are also responding
with the greatest urgency. In
Sub-Saharan Africa and the GCC,
more than nine in ten businesses
expect to increase investment in
logistics over the next year, and
it’s 86% in the Middle East and
North Africa. That reflects a clear
understanding that resilience is
now a competitive necessity, not
an optional upgrade.”
42 | LOGISTICS NEWS ME | JANUARY 2026
WWW.CBNME.COM
Page 43
Page 44
The New Logistics
World Order
The world of logistics is splitting into many paths.
Some lead to risk, some to reward. In the Middle East,
infrastructure, policy, and ambition are drawing the map
of the trade routes of tomorrow.
By Aya Zhang
GLOBAL LOGISTICS
44 | LOGISTICS NEWS ME | JANUARY 2026
WWW.CBNME.COM
Page 45
The New Logistics World Order
F
or much of the past three decades,
global logistics followed a relatively
simple logic. Supply chains stretched
across continents, production was
concentrated where costs were lowest,
and efficiency was king. If disruptions
occurred, they were treated as temporary shocks to
be absorbed and corrected.
That logic has now fundamentally changed.
What the logistics industry is facing today is not
a cycle of disruption, but a structural shift. Trade
volatility, geopolitical realignment, climate risk,
labour constraints, and regulatory divergence
have transformed logistics from an operational
function into a strategic determinant of economic
resilience. The world is no longer organised around
a single global supply chain, but around multiple,
overlapping systems shaped by politics, proximity,
and risk management.
This is the new logistics world order.
From efficiency to resilience
The old model rewarded scale and cost
minimisation. The new model prioritises continuity,
control, and optionality. Companies are no longer
asking how to move goods at the lowest possible
cost, but how to ensure goods can move at all under
increasingly unpredictable conditions.
Supply chains are being redesigned to absorb
shocks rather than eliminate redundancy. Inventory
buffers, multi-sourcing strategies, regional
distribution hubs, and alternative transport
routes are no longer seen as inefficiencies but as
safeguards. The question is no longer whether
resilience costs more, but how much disruption
costs when resilience is absent.
For logistics leaders, this shift requires a different
mindset. Performance is no longer measured only
by speed and price, but by reliability under stress.
The ability to recover quickly, reroute intelligently,
and maintain service continuity has become a
competitive advantage.
A fragmented trade landscape
Global trade itself is becoming more fragmented.
Trade corridors are increasingly shaped by
geopolitical alliances, regulatory alignment,
and national security priorities. Export controls,
sanctions regimes, localisation policies, and carbon
LOGISTICS NEWS ME | JANUARY 2026 | 45
WWW.CBNME.COM
Page 46
regulations are redefining how and
where goods can move.
As a result, companies are building
parallel supply chains to serve
different markets. One network for
North America. Another for Europe. A
separate strategy for Asia, the Middle
East, or Africa. Logistics is no longer
global by default. It is regional by
design.
This fragmentation places greater
pressure on logistics providers
to operate with precision across
multiple regulatory and operational
environments. It also elevates the
importance of trade facilitation,
customs efficiency, and corridor
reliability, areas where governments
and logistics operators increasingly
intersect.
Why the Middle East matters more
than ever
In this new order, geography matters
again. And the Middle East is uniquely
positioned.
Historically viewed as a transit bridge
between East and West, the region
is now asserting itself as a logistics
command centre in its own right.
Massive investment in ports, airports,
free zones, rail networks, and digital
trade infrastructure is reshaping how
goods flow across Asia, Europe, and
Africa.
The region’s strategic value lies not
only in location, but in intent. Gulf
states are actively positioning logistics
as a pillar of economic diversification
and long-term competitiveness. This
is reflected in national strategies that
prioritise multimodal connectivity,
customs modernisation, smart ports,
and logistics-friendly regulation.
For global shippers and manufacturers,
the GCC increasingly offers something
rare
in
today’s
environment:
infrastructure scale combined with
capital depth, policy alignment,
and a stable long-term operating
environment.
Ports as strategic assets
Ports are no longer passive gateways.
They are strategic assets that determine
the speed, cost, and resilience of trade.
Across the region, ports are expanding
capacity, integrating digital systems,
and diversifying services to handle
not just containers, but value-added
logistics, industrial activity, and regional
distribution. The focus has shifted from
throughput alone to flexibility, reliability,
and integration with inland transport
networks.
At the same time, ports are under
pressure to decarbonise operations,
manage congestion, and adopt
automation responsibly. The ability
to balance speed, sustainability, and
workforce considerations is becoming
a defining challenge for port operators
globally.
In the new logistics world order, ports
that can offer reliability under pressure,
seamless connectivity, and digital
transparency will define the trade routes
of the future.
Technology as infrastructure
Digitalisation is no longer an optional
upgrade. It is core infrastructure.
Visibility
platforms,
predictive
analytics, AI-driven planning tools, and
automation are becoming essential for
managing complexity at scale. As supply
chains fragment and volatility increases,
GLOBAL LOGISTICS
46 | LOGISTICS NEWS ME | JANUARY 2026
WWW.CBNME.COM
Page 47
The New Logistics World Order
the ability to sense disruptions early
and respond quickly is critical.
However, technology alone is not
the solution. Many organisations
are discovering that fragmented
systems, poor data quality, and
skills gaps limit the value of digital
investment. The next phase of
transformation is less about adding
tools and more about integration,
governance, and decision-making
capability.
The most advanced logistics
operations are those where
technology supports human
judgment rather than replacing
it. Data-driven insight, combined
with operational experience and
local knowledge, is what enables
intelligent responses in complex
environments.
Urban logistics and the pressure of
proximity
The transformation of logistics is not
confined to global trade routes. It is
increasingly visible at street level.
Urbanisation, e-commerce growth,
and rising consumer expectations
are placing unprecedented pressure
on last-mile delivery systems. Cities
are becoming the most contested
space in logistics, where speed,
sustainability, and social impact
collide.
Across the Middle East, logistics
providers are experimenting with
urban consolidation centres, micro-
fulfilment hubs, and smarter routing
to reduce congestion and emissions
while meeting demand for rapid
delivery. These models reflect a
broader shift toward proximity-
based logistics, bringing inventory
closer to consumption and reducing
reliance on long-haul movements.
Urban logistics is no longer a
downstream concern. It is a strategic
component of national mobility,
sustainability, and quality-of-life
agendas.
The workforce challenge
Behind every system, there are
people.
As logistics becomes more complex
and technology-driven, the demand
for skilled professionals is rising. At
the same time, the industry faces
labour shortages, skills mismatches,
and increasing pressure to localise
talent.
Training, safety, and workforce
engagement are becoming strategic
priorities. The organisations that
succeed will be those that invest not
only in assets and systems, but in
people who can operate, adapt, and
lead in an environment of constant
change.
What defines success in 2026
The new logistics world order
does not reward those who chase
scale blindly. It rewards those
who understand risk, invest in
adaptability, and think long-term.
Success will belong to organisations
that build supply chains capable
of absorbing shocks without
breaking, that leverage technology
intelligently, and that align
operations with evolving trade,
regulatory, and sustainability
realities.
For the Middle East, the opportunity
is clear. By combining infrastructure
investment, policy ambition, and
geographic advantage, the region
can shape the future of global
logistics rather than simply serve it.
Logistics is no longer a background
function of global trade. It is one
of its defining forces. And as 2026
approaches, the industry is not
returning to the old normal. It is
moving forward into a new order
where resilience, control, and
strategic connectivity define who
leads and who follows.
LOGISTICS NEWS ME | JANUARY 2026 | 47
WWW.CBNME.COM
Page 48
URBAN LOGISTICS
What innovations or technologies are you
exploring to make urban mobility smarter
and more seamless for residents and
visitors alike?
At Zed, our focus is not innovation for the
sake of novelty, but innovation that removes
friction from everyday movement. We
are investing in smarter demand–supply
matching, predictive ETAs (estimated times
of arrival) and more accurate pick-up point
mapping across the city.
A key area we are working on is context-
aware mobility which involves understanding
where, when, and why people travel, and
adapting the experience accordingly.
Whether it is event-driven demand, late-
night travel, or routine commutes, the goal
From Rides to Routes
Abhinav Patwa, Executive Vice President at Al Ghurair Group and
Head of Zed, shared how the platform is investing in smarter fleet
management, predictive ETAs, and context-aware mobility to ensure
rides are effortless, efficient, and tailored to the city’s unique rhythms.
48 | LOGISTICS NEWS ME | JANUARY 2026
WWW.CBNME.COM
Page 49
From Rides to Routes
is to make booking and riding feel
effortless, predictable, and reliable.
Technology should quietly work in
the background while the customer
experiences simplicity.
The Year in Motion suggests
ride-hailing is evolving from a
convenience to a daily essential.
How is Zed adapting its features
or services to meet this shift in
lifestyle dependency?
Ride-hailing today is no longer an
occasional service, it is part of how
cities function daily. At Zed, we are
designing the app around habitual
behaviour, not just one-off rides.
This means features that support
routine journeys such as faster
rebooking, clearer ETAs, scheduled
rides, and consistent availability
during peak hours.
For example, we recently introduced
a ‘one-tap booking’ feature after
noticing that many riders used our
services for routine commutes. This
enables riders to preset their ride
preferences including their pick-up
point, destination, payment method
and even type of ride, enabling them
to re-book the exact same journey in
the future in just one tap on the app
and allow for future convenience.
We are also expanding ride options
across taxis and limos to match
different use cases from everyday
commutes to business travel.
Overall, our philosophy is simple:
when mobility becomes dependable,
it becomes indispensable.
Beyond transport, how does Zed
aim to positively impact local
communities and the social fabric
of Dubai?
Being a homegrown brand, community
impact is not an add-on for us. It is
core to how we operate. Zed actively
looks at mobility as a platform to support inclusion, accessibility,
and local engagement.
From CSR-led initiatives with People of Determination to
hyperlocal campaigns that support neighbourhoods, we aim
to create value beyond the ride itself. Our drivers are also a vital
part of the community ecosystem, and we invest time in training,
Abhinav Patwa,
Executive Vice President at Al Ghurair Group and Head of Zed
“Ride-hailing today is
no longer an occasional
service, it is part of how
cities function daily.”
LOGISTICS NEWS ME | JANUARY 2026 | 49
WWW.CBNME.COM
Page 50
incentives, and engagement to ensure
they feel part of the brand journey.
Ultimately, we want Zed to feel less
like an app and more like a trusted city
partner.
How is Zed integrating sustainability
into its operations and services,
given the growing importance of
eco-friendly transport solutions?
Sustainability in mobility is as
much about efficiency as it is about
emissions. At Zed, we focus on smarter
fleet utilisation, reduced idle time, and
better route planning to minimise
unnecessary vehicle movement.
We are also working closely with fleet
partners to gradually support cleaner
vehicle adoption and more responsible
driving practices. Beyond vehicles,
reducing congestion through smarter
pick-up points and better traffic flow
plays a meaningful role in making
urban transport more sustainable
overall.
How does Zed plan to differentiate
itself in a competitive ride-hailing
market while remaining homegrown
and locally focused?
Our differentiation comes from being
deeply local by design. We understand
Dubai’s rhythms, peak patterns,
communities, and regulatory
environment because we operate
within it every day.
Rather than copying global
playbooks, we build solutions
tailored to how Dubai actually
moves—whether that is late-
night demand in Marina, business
travel in DIFC, or community
needs in residential clusters.
Trust, reliability, and cultural
alignment matter just as much as
price or speed, and that’s where
Zed continues to stand apart.
What trends or behaviours
do you anticipate will shape
ride-hailing in Dubai over the
next five years, and how is Zed
preparing for them?
Over the next five years, we’ll
see ride-hailing shaped less by
speed and more by experience,
predictability, and integration
with daily life. Customers
will expect mobility apps to
anticipate needs, not react to
them.
We also anticipate greater
demand for scheduled travel,
subscription-based mobility,
premium reliability, and more
personalised ride options. From
a city perspective, smarter data-
driven mobility will play a role in
urban planning and congestion
management.
Zed is preparing for this future
by building a platform that is
human-first, data-informed, and
deeply aligned with how Dubai is
evolving as a city.
URBAN LOGISTICS
“We want Zed to
feel less like an
app and more
like a trusted city
partner.”
50 | LOGISTICS NEWS ME | JANUARY 2026
WWW.CBNME.COM
Page 51
It all starts
with an idea
IDEAL STANDARD MENA
T + 97148042400 | E idealstandardgulf@idealstandard.com
IDEAL STANDARD DESIGN & SPECIFICATION CENTRE
Building 7, Happiness Street, City Walk, Dubai, UAE | T + 97143096000
www.idealstandardgulf.com
Page 52
CLOSER
THAN EVER
LAST-MILE
GCC cities are reinventing the last mile and enabling ultra-fast
delivery, reshaping how goods move through the Middle East.
By Reeba Asghar
B
y 2030, city
streets across
t h e
G u l f
Cooperation
Council (GCC)
will look entirely
different, not
only because of
gleaming skylines or autonomous
vehicles, but because of how
goods move through the urban
fabric. As e-commerce demand
accelerates and consumer
expectations intensify, logistics
leaders across the GCC are turning
52 | LOGISTICS NEWS ME | JANUARY 2026
WWW.CBNME.COM
Page 53
Closer Than Ever
to urban consolidation centres (UCCs) and
micro-fulfilment hubs to solve perhaps the
most complex challenge in modern supply
chains: the last mile.
The Last Mile Problem In Context
Last-mile delivery, the final step from
warehouse to doorstep, is widely recognised
as the most expensive and inefficient segment
of the logistics chain, often accounting for
up to 50% of total delivery costs in urban
environments. In fast-growing GCC cities such
as Dubai, Riyadh, and Jeddah, congestion,
extreme heat, and dense urban development
amplify these inefficiencies.
Consumer expectations have fundamentally
shifted. “Within a few days” is no longer
acceptable; same-day and two-hour delivery
windows are increasingly viewed as the
baseline. This rising pressure has triggered
a strategic rethink: where inventory should
physically live in relation to the customer.
Bringing the Warehouse Closer
Urban consolidation centres — strategically
located facilities within or near dense
metropolitan areas are emerging as a powerful
solution. These hubs function as aggregation
and transhipment points where goods from
multiple suppliers are consolidated and
dispatched via smaller, cleaner vehicles for
last-mile delivery.
Research shows that UCCs reduce urban freight
traffic, lower emissions, and improve delivery
efficiency by shifting heavy trucks away from
city cores and optimising load utilisation.
This is no longer theoretical in the GCC. In
Saudi Arabia, SMSA Express has significantly
expanded its micro-fulfilment network,
transforming more than 150 of its nationwide
service centres into local fulfilment hubs that
allow e-commerce orders to be processed
and dispatched from within cities rather
than shipped from distant warehouses. This
proximity-based model enables deliveries
within hours and supports same-day
fulfilment, reducing delivery distances and
alleviating pressure on congested urban roads.
Market analysts estimate that urban freight
consolidation is rapidly becoming a multi-
billion-dollar segment in the Kingdom, driven
by e-commerce growth and Vision 2030’s focus on logistics
efficiency and sustainability.
Micro-Fulfilment: The GCC’s Answer to Rapid Delivery
If UCCs reshape city-wide freight flows, micro-fulfilment centres
(MFCs) take the concept a step further by embedding inventory
directly within neighbourhoods. These compact, technology-
enabled facilities stock fast-moving goods close to demand
clusters, enabling ultra-fast fulfilment.
A systematic review shows that micro-fulfilment centres can
significantly reduce delivery distance, delivery time, and CO₂
emissions, while improving customer satisfaction, especially in
dense urban areas.
Across the UAE, this model is rapidly evolving. Amazon expanded
its “Amazon Now” service nationwide, using a network of micro-
fulfilment centres embedded within urban neighbourhoods
to deliver everyday essentials in as little as 15 minutes. These
facilities position inventory closer to customers, dramatically
shortening delivery distances and easing last-mile congestion in
dense districts such as Dubai Marina, Jumeirah Beach Residence,
and Business Bay.
In addition, partnerships between e-commerce platforms and
local logistics hubs, such as Amazon’s collaboration with 7X’s
dark-store network, are reinforcing hyper-local inventory
LOGISTICS NEWS ME | JANUARY 2026 | 53
WWW.CBNME.COM
Page 54
placement
and
rapid
fulfilment strategies across
the UAE’s major urban
centres.
M e a n w h i l e ,
D u b a i
CommerCity
continues
to expand its fulfilment
infrastructure, planning
new facilities to support
accelerated dispatch and
processing of last-mile
deliveries as demand from
digital commerce companies
grows.
Technology as the Nervous
System
Urban logistics hubs and
micro-fulfilment centres are
not standalone assets; rather,
they function as nodes within
a broader digital logistics
ecosystem. Autonomous
ro u ti n g
a l go ri t h m s ,
predictive demand analytics
and real-time traffic data are
increasingly employed to
orchestrate deliveries across
dense urban networks.
Research confirms that
integrated last-mile models
combining consolidation
hubs,
micro-fulfilment
centres
and
digital
optimisation outperform
traditional direct-from-
warehouse approaches.
These
models
reduce
vehicle kilometres travelled
and
emissions
while
simultaneously improving
service levels.
In the GCC, this technology-
driven approach aligns
closely with smart city
strategies and national
sustainability agendas,
including the UAE’s Net
Zero 2050 initiative and
Saudi Arabia’s logistics transformation
objectives.
A GCC Story of Innovation and Urban
Growth
The story unfolding across the GCC
is one of transformation through
proximity. As cities like Dubai, Abu
Dhabi, and Riyadh continue to densify,
logistics infrastructure is being
reimagined as distributed networks
of smart, urban-embedded fulfilment
points.
This shift is strategic as much as
technological. It supports congestion
reduction, emissions targets, and
consumer expectations for speed and
transparency, positioning the GCC not
merely as a fast follower, but increasingly
as a global testbed for next-generation
urban logistics.
The Road Ahead
Urban consolidation centres and
micro-fulfilment hubs represent the
next frontier in GCC logistics, a decisive
move away from sprawling, peripheral
warehouses toward city-centric
fulfilment real estate that brings goods
closer to people.
For
logistics
executives
and
policymakers alike, the message is clear:
solve the last mile, and you unlock the
future of delivery in smart, sustainable
cities. And in a region where urban
growth shows no sign of slowing, that
future is already taking shape, one
neighbourhood hub at a time.
LAST-MILE
54 | LOGISTICS NEWS ME | JANUARY 2026
WWW.CBNME.COM
Page 55
W W W . A L S . A E R O
info@als.aero
@AEDLERLogistikSolutions
INNOVATIVE
CAR PARK
SOLUTIONS
Page 56
Visit Our Website