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I N N O V A T I O N Rare earth magnets to assist supply chain for luxury cars I N T E R V I E W Yury Duzhnikov, Head of Sales, Peugeot S U S T A I N A B I L I T Y Michelin tires, 100% sustainable in 2050 CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE MARCH 2021 <Riding> the eCommerce Wave Key market players discuss how the pandemic ushered in an eCommerce boom, and how they developed new processes and digital strategies to cope with the massive growth in demand
A MEMBERS OF EMIRATES TRANSPORT BUSINESS CENTERS:
LOGISTICS NEWS ME | MARCH 2021 | 3 RIDING THE ECOMMERCE WAVE 14 INTERVIEW MEETING THE DEMAND Yury Duzhnikov, Head of Sales, Peugeot 24 SUPPLY CHAIN VACCINE DISTRIBUTION CHALLENGES Limited capacity, shortage of supplies, lack of coordination, and misinformation are some of the issues impacting the COVID-19 vaccine rollout, according to JAGGAER 28 MOBILITY GLOBAL AUTOMOTIVE MOBILITY STUDY highlights market uncertainty 30 OP-ED CAN MACHINES THINK? By Marek Lukaszczyk, European and Middle East Marketing Manager at motor and drive manufacturer WEG 34 REPORT OPTIMISTIC OUTLOOK UAE women leaders more optimistic about revenue growth and digitalization than global peers, while striving to make a positive impact, KPMG report reveals 36 INNOVATION RARE EARTH MAGNETS TO ASSIST SUPPLY CHAIN FOR LUXURY CARS The project will help create a technique to recycle magnets removed from computer hard drives to make rare earth magnets 38 SUSTAINABILITY 100% SUSTAINABLE IN 2050 By 2050, Michelin tires will be made entirely from renewable, recycled, biosourced or otherwise sustainable materials In this special feature we speak to key market players on how the pandemic ushered in an eCommerce boom. Logistics companies explain how they developed new processes and digital strategies to cope with the massive growth in demand 18 IN THIS ISSUE 14 26
4 | LOGISTICS NEWS ME | MARCH 2021 WWW.CBNME.COM There is no other industry where so many industry experts ascribe a high importance to data and analytics in the next five years than transportation and logistics. There are vast opportunities here to improve performance and serve customers better, and LSPs who are part of a digitally integrated value chain can benefit from significantly improved forecasting to scale capacity up or down and plan routes. Adding machine learning and artificial intelligence techniques to data analytics can deliver truly dynamic routing. Logistics companies will need to focus on ‘digital fitness’, cost efficiency, asset productivity, and innovation if they want to meet changing expectations. Building and refining these and other capabilities, and then bringing them to scale across the enterprise, will be key as they translate the strategic into the everyday. All rights reserved © 2021. Opinions expressed are solely those of the contributors. Logistics News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Logistics News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Logistics News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by UPP L ogistics companies are facing an era of unprecedented change as digitisation takes hold and customer expectations evolve. New technolo- gies are enabling greater efficiency and more collaborative operating models; they’re also re-shaping the marketplace in ways that are only just beginning to become apparent. New entrants, whether they be start-ups or the indus- try’s own customers and suppliers, are also shaking up the sector. WHAT LIES AHEAD FOR THE LOGISTICS INDUSTRY, DIGITALLY? Kasun Illankoon Editor kasun@bncpublishing.net SUBSCRIBE subscriptions@bncpublishing.net For all commercial enquiries, contact sales@bncpublishing.net T +971 50 440 2706 PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 Keep up to date with all the latest news, features and much more on our website and social media platforms. CBNME.COM CBNME @CBNME CONSTRUCTION BUSINESS NEWS ME EDITOR’S NOTE LNME CEO Wissam Younane wissam@bncpublishing.net DIRECTOR Rabih Najm rabih@bncpublishing.net GROUP PUBLISHING DIRECTOR Joaquim D'Costa jo@bncpublishing.net +971 50 440 2706 BUSINESS DEVELOPMENT DIRECTOR Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818 EDITOR Kasun Illankoon kasun@bncpublishing.net ASSISTANT EDITOR Jochebed Menon EDITORIAL DESIGN Christian Harb MARKETING EXECUTIVE Aaron Sinanbam aj@bncpublishing.net
8 | LOGISTICS NEWS ME | MARCH 2021 WWW.CBNME.COM REGIONAL NEWS LNME G lobal logistics provider Agility announced that it has invested USD35 million in Queen’s Gambit Growth Capital, a blank-check company that will target businesses offering sustainable solutions in clean energy, healthcare, finan- cial technology, industrials, mobility, and emerging technology. Queen’s Gambit’s all-female management team is led by CEO Victoria Grace, a New York-based venture capitalist, and supported by an all-female Board with strategic networks and diverse industry experience. “Agility’s investment in Queen’s Gambit reflects our commitment to sustainability and our belief that innovative technol- ogy can yield both social and economic returns,” Tarek Sultan, Vice-Chairman of Agility said. “This is not a new position for us. We’ve been investing in stakeholder capitalism for more than a decade.” Queen’s Gambit’s female-led management team “has the potential to tap into a differentiated network and perspective that positions it to execute a business combination with an attractive target,” Sultan said. “This is a chance to take a more inclusive view of opportunities in the market, and drive value in the process.” Agility has been intensifying its long- standing commitment to the environment, sustainability and improved governance. It was recently added to the FTSE4Good Index Series, a resource used by investors to identify companies around the world with strong environmental, social and governance (ESG) practices. KUWAIT’S AGILITY INVESTS USD35MN IN QUEEN’S GAMBIT Tarek Sultan, Vice-Chairman, Agility Victoria Grace, CEO, Queen’s Gambit
LOGISTICS NEWS ME | MARCH 2021 | 9 REGIONAL NEWS G AC, one of the largest integrated providers of shipping, logistics and marine services in the region and the world, has signed an agreement with Qatar Free Zones Authority (QFZA) to establish a contract logistics facility and office in the Ras Bufontas Free Zone. The agreement with GAC will play an important role in expanding the logistics offerings for QFZA and Qatar, strengthening supply chains and bolstering Qatar’s position as a global hub for trade. Virtual ceremony The virtual signing ceremony was attended by H.E. Ahmad bin Mohammed Al-Sayed, the Minister of State and Chairman of QFZA. The agreement was signed by Björn Engblom, GAC Group Executive Chairman & Trustee (via video conference) and Lim Meng Hui, Chief Executive Officer of QFZA, in the presence of Abdulla Al- Misnad, Deputy CEO of QFZA. Sustainability & business The purpose-built 27,000 sqm multi- user contract logistics facility, due to be completed in the first quarter of 2022, will be built from sustainable materials, partly fuelled by solar power, have several energy-saving features, and use recycled water in its operations. The warehouse will serve key sectors including fast-moving consumer goods (FMCG), food & beverage (F&B), fashion, sports, energy, aerospace, and healthcare. It will maintain temperatures ranging from -18°C to +22°C to support cold chain operations and will feature dedicated mezzanine levels for Value-Added Services activities such as component assembly, repacking and labelling to enhance customers’ supply chains. GAC’s marine and offshore services will be well supported by Marsa Port, the marine cluster in Qatar Free Zones. Its operations at the port will serve the energy companies active in the North Field expansion projects. Lim Meng Hui, Chief Executive Officer of QFZA praised the partnership and said: “We welcome the partnership with GAC, and we are pleased to see them join the group of logistics companies in Qatar Free Zones. The role of the free zones is to partner with companies who bring services that our local and regional market needs, allowing them to grow and our economy to grow with them. To bring in the world’s best companies to the zones, we are focused on sectors where we have a strong value proposition for these companies.” Engblom added: “As a pioneer of contract logistics in the region in 1993, GAC continues to augment its capabilities in this area at key locations globally. This agreement with the Qatar Free Zones marks another exciting milestone for GAC as we continue to invest in and expand our service offerings in strategic areas. “We have seen robust demand for GAC’s logistics services including integrated solutions for the energy sector and foresee even greater opportunities in Qatar in the lead-up to the global football sporting event in 2022 and as the North Field expansion projects progress. Qatar Free Zones is an excellent base for our contract logistics operations in the country from which we will serve our local and international clients.” Located in the heart of the Middle East, Qatar is well positioned to connect markets across three continents – all placed within reach of the Free Zones through Qatar’s award-winning air and seaports that sit directly adjacent to Qatar Free Zones, providing streamlined access for logistics and other companies. According to the recent Mordor Intelligence report about the freight and logistics market, Qatar’s logistics sector is predicted to grow at an annual 7% in the coming years, outpacing the global average. This growth has been enabled by two factors: heavy investment in logistics infrastructure which has helped establish Qatar as a major regional hub for logistics companies; and major national projects including the North Field Expansion and the World Cup Qatar 2022 which are helping to fuel the domestic demand for specialised logistics services. GAC TO ESTABLISH CONTRACT LOGISTICS FACILITY IN QATAR FREE ZONES
10 | LOGISTICS NEWS ME | MARCH 2021 WWW.CBNME.COM REGIONAL NEWS LNME D ubal Holding’s decision to acquire a majority stake in Dubai- based aluminium extrusion company OSE Industries is a major vote of confidence in the UAE economy, according to Dubai Industrial City. The region’s largest manufacturing and logistics hub, home to OSE Industries, lauded the deal as a reflec- tion of the growth opportunities and underlying strength in Dubai’s industrial sector. OSE Industries began manufacturing operations in 2015 and now exports MPE, precision tubing and industrial piping across the Middle East and North Africa, Asia, Europe, and the US. Its clients include a well-known US electric carmaker, as well as major players in the heating, ventilation, and air conditioning (HVAC) sector. Dubal Holding’s acting chief executive officer, Ahmad Bin Fahad, said: “We have strong faith in the fundamentals of Dubai’s econ- omy and continue to actively explore investment opportunities in key growth sectors to create value and downstream opportuni- ties. Our agreement with OSE Industries underscores our resolute confidence in the emirate’s industrial ecosystem. I would also like to commend Dubai Industrial City’s role in creating a vibrant eco- system with infrastructure and an enabling environment to help companies scale and grow.” OSE president and chairman, Othman Sharif, added: “As the shift to electric vehicles in Europe and the US steps up a gear, our busi- ness is uniquely positioned to capitalise on this evolution in the au- tomotive market and the move towards a cleaner, greener future. The UAE is a regional leader in sustainability, and we are proud to be a family-run, Dubai-based company that has grown organically, exporting high-quality products to markets all around the world.” For his part, Saud Abu Al-Shawareb, Managing Director of Dubai Industrial City, said: “This deal is a major boost for Dubai’s indus- trial sector. It will enhance the emirate’s position as a hub for manu- facturing and logistics in line with the vision of our leaders for a diversified, sustainable economy. As a strategic driver and enabler of the Dubai Industrial Strategy 2030, we work hard alongside our 750 business partners to position Dubai as a global platform for knowledge and innovation-based industries with a focus on priority sub-sectors including aluminium and fabrication metals.” Situated near Jebel Ali Port and Al Maktoum International Air- port, OSE Industries’ strategic location in Dubai Industrial City af- fords the business trade access to two-thirds of the global popula- tion in eight hours. This has enabled it to expand quickly as electric vehicles become more popular and the HVAC sector shifts its focus to aluminium rolled tubes. Dubal Holding, a wholly owned subsidiary of Investment Cor- poration of Dubai, is focused on expanding its industrial footprint and stimulating growth in the downstream value chain. Its stake in OSE Industries sends a positive message to the global investment community in Dubai’s future growth potential as the restart in the global economy gains momentum. DUBAL HOLDING’S OSE INDUSTRIES ACQUISITION A MAJOR BOOST FOR DUBAI’S INDUSTRIAL SECTOR
LOGISTICS NEWS ME | MARCH 2021 | 11 REGIONAL NEWS T he Saudi Logistics Company (SAL) has signed a memorandum of cooperation with King Abdullah Economic City to provide further support to both the logistics sector in the Kingdom and King Abdullah Economic City (KAEC). The signed memorandum by Omar Hariri, CEO of SAL, and Ahmed Linjawi, CEO of KAEC, focuses on enhancing logistics services and contributes to creating promising logistic and economic opportunities in conjunction with Saudi Arabia’s ambitious 2030 vision to transform the Kingdom into a global logistic hub. Commenting on the event, Omar Hariri emphasised on the importance of this strategic partnership and its role to enhance the cargo ground handling services from and to KAEC. He also mentioned that selecting KAEC was a perfect choice due to its unrivaled logistic position in the region and prominent strategic economic and investment location. He added that SAL would utilize all its logistic capabilities to take advantage of the competitive benefits of what the Industrial Valley at KAEC has to offer. Commenting on the memorandum, Ahmed Linjawi said: “This memorandum aims to enhance the strategic partnerships we enjoy with different public and private entities and is part of our continuous efforts to provide investors from inside and outside the Kingdom with a comprehensive stimulant investing environment to support and diversify the national economy. “The signing of this memorandum is parallel with KSA’s 2030 vision to becoming a global logistic hub and cements the Industrial Valley’s position as an important logistic connection point for the east and west trade routes.” SAL is the logistic arm of Saudi Arabian Airlines offering premium cargo handling services to airline carriers at Saudi Arabia’s domestic airports and a multi-model con- nectivity service. Thanks to its competitive privileges, the Industrial Valley at KAEC serves as an at- tractive destination for the world’s reputed Food and Pharmaceutical firms offering investors with high quality logistic and inte- grated infrastructure services. What makes the Industrial Valley so spe- cial is its connection with King Abdullah Port and the International Flight Network, not to mention the fully integrated facili- ties, housing solutions and social services that remain affordable to all budgets. The Economic Cities & Special Zones Authority (ECZA) is the sole regulator of KAEC, which serves as the facilitator of all governmental procedures and ensures a comfortable and stimulant environment for all investors in and outside the Kingdom. SAUDI’S LOGISTICS SECTOR GETS A BOOST AS SAL AND KAEC INK MOC
12 | LOGISTICS NEWS ME | MARCH 2021 WWW.CBNME.COM T he World Logistics Passport (WLP) wel- comed Israel as a participant in the pro- gramme at a virtual signing cer- emony with the Federation of Israeli Chambers of Commerce, according to WAM. As the tenth country to enter the WLP, whose trade strategy and expertise aims to increase the resilience of economies around the world, Israel joins recent member countries India, South Africa, Indonesia, among others. The signing ceremony was attended by Sultan Ahmed bin Sulayem, Chairman of Dubai’s Ports, Customs and Free Zone Corporation (PCFC), and Amir Shani, Vice President of the Federation of Israeli Chambers of Commerce, as well as other Israeli executives from the Chamber. Trade between Dubai and Israel reached a value of Dhs1 billion (USD272 million) be- tween September 2020 and January 2021. This included 6,217 tonnes of sea-freight and airfreight moving between the two nations. Major imports and exports included mechanical and medi- cal devices, electronic devices, flat screens, smart phones, diamonds, and engine spare parts. Amir Shani, VP FICC and Chair- man of the Freight Forwarders Association, said: “We are ex- cited about joining the World Logistics Passport global net- work as a partner. We believe our members will greatly ben- efit from this global incentive programme to expand their trade opportunities.” This partnership will allow Israeli companies to reduce cost and improve their supply chain to and from Israel using Dubai as logistical hub for new markets. The Abrahams accords and Israel’s connection to Dubai enables it to become a region- al and global player and open new trade routes, possibilities, and business exchange. This in return will reduce the cost of living and promote business growth in the most needed time of COVID-19 crisis. Moreover, the specific incentives under the relief tier of the WLP should further improve the logistics of Israel’s COVID-19 vaccine distribution. Shani added: “The FICC continue to lead the private business sector and to advocate for free global trade by building business platforms as the WLP and partnering with the Dubai Chamber of Commerce to facilitate Business-to-business interactions.” Through the WLP, traders can expect to save 25% on freight costs and 10% on transit time. For instance, the cargo jour- ney from Israel to South East Asia. Transporting high-value, low-weight goods through his- torically established transport routes in Asia takes consider- ably longer, and is therefore more expensive, than if the goods pass through Dubai. The WLP loyalty programme provides traders with several financial and non-financial benefits for increased trade volumes, spread across a four-tier membership scheme. Global brands leveraging the WLP and its benefits include anchor tenants such as UPS, Pfizer, Sony, Johnson & Johnson, and LG, all part of the programme’s Platinum tier. The WLP also provides participating members with access to Gold and Silver tiers of benefits, which vary based on the value and frequency of trade. As part of Israel’s participation in the WLP, the country will be part of the programme’s Relief Tier – which supports humanitarian organizations and governments in providing relief in crises. In the case of COVID-19 all companies registered as WLP members involved in vaccine manufacturing and distribution will receive immediate cost and time efficiency benefits and part of the Gold Tier of membership. The WLP Relief Tier promotes and reinforces Dubai’s position as a global crisis logistics hub for humanitarian supplies. With Israel’s entry into the programme, both countries will be strengthening their bi-lateral ties through close cooperation on COVID-19 vaccine distribution and supply chains. Furthermore, Israel will benefit from increased freight through Dubai while providing humanitarian organisations an efficient, centrally located hub for their logistics in the region. The WLP has a proven track record. In Dubai, 15 local providers have confirmed more than 50 benefits which have in turn been applied to over 300 traders, accounting for approximately 50% of the emirate’s trade. Since its inception in 2019, the WLP has generated more than AED3 billion in total trade. ISRAEL JOINS WORLD LOGISTICS PASSPORT TO BOOST TRADE REGIONAL NEWS LNME 12 | LOGISTICS NEWS ME | FEBRUARY 2021 Amir Shani, Vice President of the Federation of Israeli Chambers of Commerce
LOGISTICS NEWS ME | MARCH 2021 | 13 REGIONAL NEWS A gility, a leading global logis- tics provider, and its digital innovation arm Shipa, a trusted last-mile delivery and e-commerce logistics player, announced the launch of a bonded, express road freight network to connect businesses and consumers across the GCC. The new service provides customers with less-than-truckload (LTL) and full truckload (FTL) options and a fast, cost- effective way to ship packages, pallets, or containers of goods with daily departures and scheduled pickups in the UAE, Saudi Arabia, Oman, Kuwait, and Bahrain. The service draws on the network and expertise of the Gulf’s leading logistics provider. Agility’s warehousing footprint is the GCC’s largest and includes world- class facilities in the UAE, Saudi Arabia, Oman, Kuwait, and Bahrain, that are sup- ported by teams of customs clearance experts. Agility owns one of the region’s largest road fleets and provides online tracking for parcels and other cargo. Shipa specializes in e-commerce and ef- ficient last-mile delivery. Express road freight provided by Agility and Shipa offers parcel tracking through- out the GCC and includes value-added services including temperature-controlled transportation; merge-in-transit; just- in-time delivery; reverse logistics; and control-tower management. It also will help shippers deal with undelivered par- cels that must be returned to fulfillment centers. The bonded road freight service is licensed to carry cargo that has not yet been subject to taxes and duties in coun- tries where applicable. “The growth in e-commerce across the GCC has provided an opportunity to better serve customers with cost effec- tive and reliable solutions,” says Henadi Al-Saleh, Agility Chairperson and leader of Agility’s corporate ventures arm. “E- commerce growth has been accelerated by the pandemic, and many companies have been transacting more of their busi- ness online. The Shipa-Agility partnership is aimed at helping these companies expand their businesses across the region and tap into new markets.” Elias Monem, Agility Global Integrated Logistics (GIL) CEO for Middle East & Africa, says: “Agility is continuously look- ing to improve and expand what we offer to clients. This new service allows us to use our bonded and non-bonded infrastructure and our modern road fleet to provide customers with a faster, more cost-effective shipping and delivery.” AGILITY AND SHIPA LAUNCH GCC CROSS-BORDER EXPRESS ROAD FREIGHT
14 | LOGISTICS NEWS ME | MARCH 2021 WWW.CBNME.COM C OVID-19 brought our world to a stand- still, at least for most of us. Not for the logistics industry though, while businesses across the globe have seen a sharp decline, there has been an uptake in demand for the supply chain and delivery sectors. French automotive manufacturer Peugeot testifies to this fact. Yury Duzhnikov, Head of Sales – Peugeot, says: “With lockdowns in place all over the region, companies had to figure out a way to deliver their goods to end users. “As such, many companies restructured operations to operate through e-commerce, and logistics companies supported this initiative by increasing their vehicle fleet sizes to meet the sudden influx of demand.” This led to auto-manufacturers having to prioritise production of light commercial vehicles (LCV), to sup- port the last mile deliveries and distribution networks. INTERVIEW Peugeot has seen a steady increase in business for its light commercial vehicles since the pandemic began last year. Yury Duzhnikov, Head of Sales, speaks to Jochebed Menon MEETING THE DEMAND “Many companies restructured operations to operate through e-commerce, and logistics companies supported this initiative by increasing their vehicle fleet sizes to meet the sudden influx of demand.” LNME >>>
LOGISTICS NEWS ME | MARCH 2021 | 15 MEETING THE DEMAND | PEUGEOT SEES A STEADY INCREASE IN BUSINESS PEUGEOT Boxer 2020
16 | LOGISTICS NEWS ME | MARCH 2021 WWW.CBNME.COM INTERVIEW He elaborates: “As a result of this, Peugeot finalised deals with the likes of Noon and DHL to support this rising demand.” The company is a key LCV supplier to several logistics firms in the country including DHL, TCS, Sky Express, First Flight, Skynet, Road Rider, Mainland, Steady Routes, Transguard, Fetchr, Zajil, Aramex as well as large e-commerce companies like Noon, DHL, and Carrefour. Heightened demand Peugeot has particularly seen a spike in demand for its Van-B, Van-D and Van-E vehicles. He adds: “The van segment has wit- nessed a boost in growth throughout the region. Van-D remains the largest segment in terms of demand, however, Van-E has had the largest year-on-year growth, followed by Van-B, thanks in part to the introduction of the new Peugeot Partner model in 2019. “Due to this, we witnessed a 203% growth in 2020, and dou- bled our market share in the segment. We also rank second in the region for this Van-B segment which I can say is a great achieve- ment for us.” Overcoming the hurdles With demand increasing, Peugeot had to ramp up production, which proved to be a tall order. Yury explains: “Meeting demand for our LCV line-up was one of the biggest challenges Peugeot faced. As lockdowns spread across Europe, production in turn was put on hold. Despite this, once markets began to open, pro- duction recovery had to be smart to meet the shortage in supply without jeopardising quality of our vehicles. “We successfully overcame this unprecedented challenge, and a lot of credit goes to the entire logistics industry for supporting in delivering parts from suppliers as well as the actual vehicles from production facilities all the way to the end users.” Bright outlook As for the time ahead, the carmaker is expecting a breakthrough this year with an almost completely revamped passenger vehi- cle line-up - the all-new Peugeot 208, 2008, 508 GT and 3008 PHEV, as well as the redesigned 3008 and 5008. Yury adds: “Furthermore, as the e-commerce growth continues to fuel the demand for last-mile deliveries and enhanced distribu- tion networks, we look forward to supporting the logistics indus- try by enhancing our product offering for our LCV line-up, while also introducing the 2022 models for our partners.” What is also in the pipeline for Peugeot is electrification in the LCV segment. Since 2019, all new models launched by Peugeot are either all-electric or plug-in hybrid variants. “As part of our global strategy, the aim is for Peugeot’s entire passenger car and LCV range to be electrified by 2025,” he notes. Globally for the LCV segment, Peugeot has already electri- fied its entire line-up with models like the e-Boxer and e-Expert, which won the 2021 International Van of the Year award, and the recently announced e-Partner. He concludes: “Our first Plug-In Hybrid (PHEV) the 3008 PHEV is set to arrive in the region in spring 2021. The product team is already working with the R&D department at our head- quarters to also bring the e-LCV line-up over as soon as possible. “Despite the availability of vaccines, the current repercussions are in the uncertainty of what lies in the short term. However, what is clear, is that e-commerce and door-to-door services for logistics are here to stay, even when it comes to purchasing big- ticket items like vehicles.” “We successfully overcame this unprecedented challenge, and a lot of credit goes to the entire logistics industry for supporting in delivering parts from suppliers as well as the actual vehicles from production facilities all the way to the end users.” PEUGEOT Partner 2020 LNME
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COVER STORY Key market players discuss how the pandemic ushered in an eCommerce boom, and how they developed new processes and digital strategies to cope with the massive growth in demand LNME 18 | LOGISTICS NEWS ME | MARCH 2021 WWW.CBNME.COM <Riding> the eCommerce Wave
LOGISTICS NEWS ME | MARCH 2021 | 19 T he eCommerce indus- try has been seeing a steady growth since its advent and more so in the recent years. According to Statista, an estimated 1.92 bil- lion people purchased goods or services online in 2019, and during the same year, eRetail sales sur- passed USD3.5 trillion worldwide. The pandemic has further boosted this sector. Statista revealed that in June 2020, global retail eCommerce traffic stood at a record 22 billion monthly visits, with demand being exceptionally high for everyday items such as groceries, clothing, but also retail tech items. Aboobacker Ashraf, eCommerce Manager - UAE at Hellmann World- wide Logistics - Middle East and South Asia, attests to this fact: “Multiple markets have seen agile growth in busi- ness during this period such as health and safety items. These products are being purchased far faster than they can be produced and restocked. Im- pressive demand in seen in the sports and fitness sector. With the lockdown, it comes to no surprise that people are at home and are no longer pursuing external fitness options, there is an in- crease in home fitness. Other blistering sectors that are seeing an uptake are shelf-stable goods, food and beverage, and last but not the least fashion.” He adds: “Customers have moved from shopping in stores to buying online for obvious reasons. Online orders are now higher than we have ever imagined. We are continuously on the lookout for solutions that help us minimise challenges and speed up our fulfilment process. “Businesses dealing with this situa- tion include those with omnichannel inventory strategies that have shifted to BOPIS (buy online, pick up in-store) models, and smaller businesses such as restaurants that converted their websites into delivery businesses. The changes in consumer demand also rip- pled through the supply chain at ever greater magnitudes, creating long-term problems for production and supply.” Re-evaluating business models Shifting to BOPIS and adapting to the new norm have been challenging for some. GAC Dubai and its customers were severely affected by COVID-19, particularly when the lockdown was first announced as buying habits changed instantly with malls and retail stores shut and many people working from home. Neil McMaster, General Manager – Contract Logistics, GAC Dubai, ex- plains: “This new situation led numer- ous clients to re-evaluate their supply chains and seek solutions to implement eCommerce in parallel to their core business. We at GAC Dubai actively engaged with clients and authorities to devise operational and IT solutions. “Although there has been a strong rebound since lockdown restrictions eased, some sectors still face difficult market conditions. “The changes in consumer demand also rippled through the supply chain at ever greater magnitudes, creating long-term problems for production and supply.” KEY MARKET PLAYERS ON HOW THE PANDEMIC USHERED IN AN ECOMMERCE BOOM >>> Aboobacker Ashraf, eCommerce Manager - UAE, Hellmann Worldwide Logistics - Middle East and South Asia
20 | LOGISTICS NEWS ME | MARCH 2021 WWW.CBNME.COM Particularly, replenishment to duty-free retail operators remains at exceptionally low levels and, despite some recovery around year-end, this is expected to persist until the global vaccine rollout facilitates a large-scale return to passenger travel by air. “The slowdown in high-street retail for fast fashion and business attire has been offset by a boom in demand for leisure wear and fitness equip- ment. Furniture and homeware sectors also performed well as more people switched to working from home. FMCG, pharmaceutical and food industries tracked against forecast.” Since the pandemic, GAC received many enquiries seeking e-commerce solutions, either directly to customers or replenishing major local eCom- merce platforms. Neil adds: “We are well-equipped to meet that demands with our modern, tailored IT solu- tions and operational efficiency, and we look forward to a challenging and successful 2021.” COVER STORY LNME “Replenishment to duty-free retail operators remains at exceptionally low levels and, despite some recovery around year-end, this is expected to persist until the global vaccine rollout facilitates a large-scale return to passenger travel by air.” Neil McMaster, General Manager – Contract Logistics, GAC Dubai
LOGISTICS NEWS ME | MARCH 2021 | 21 Thinking ahead Companies who future planned and were moving online to offer both offline and online solutions were able to adapt quickly to this quickly evolving model. Emirates Post is one such com- pany. Abdulla M. Alashram, Group CEO of Emirates Post Group, says: “We were in a strong position to adapt to the pandemic as we had already begun working on a business transformation, focused on last-mile delivery and digitalisa- tion. As consumer preferences shifted online and eCommerce boomed, we focused our efforts on developing new processes and investing in the right tech- nologies to make our last-mile delivery system seamless and more efficient. “For example, we partnered with smart last mile technology providers and boosted our in- ternal digital capabilities, which enabled us to orchestrate, track, and optimse logistic operations more efficiently.” In addition, Emirates Post in- creased its front-line workforce to cope with increased deliveries and quickly adapt its capacity while providing enhanced vis- ibility, control, efficiency, and exceptional customer service. Abullada notes: “To help the community stay connected, we offered customers the chance to book pick-up and delivery services online, started a web- shop for stamps, and created the ‘epostcard’ app that allowed customers to create customized postcards. “The pandemic has vastly accelerated digital adoption and put eCommerce at the forefront of retail. eCommerce giant Am- azon’s response to COVID-19 is worth noting, as they embraced the surge in demand, set up the necessary infrastructure, and responded efficiently.” “To help the community stay connected, we offered customers the chance to book pick-up and delivery services online, started a webshop for stamps, and created the ‘epostcard’ app that allowed customers to create customized postcards.” “This new situation led numerous clients to re-evaluate their supply chains and seek solutions to implement eCommerce in parallel to their core business.” >>> Abdulla M. Alashram, Group CEO of Emirates Post Group KEY MARKET PLAYERS ON HOW THE PANDEMIC USHERED IN AN ECOMMERCE BOOM
22 | LOGISTICS NEWS ME | MARCH 2021 WWW.CBNME.COM Bridging the gap Firms whose operations are fully supported digitally have been able to capitalise on the eCommerce boom and expand their business. TruKKer, MENA’s largest digital freight network that con- nects incoming truck demands and the supply in real-time, has been able to offer watertight solutions. Anish Garg, Vice President of Op- erations - GCC, TruKKer, reveals: “We witnessed rapid client activations during the peak COVID-19 period as tradi- tional transportation brokers faced severe disruption and operational challenges. The surge in online demands offered us a unique chance to implement and leverage our advanced load prediction capabili- ties. While we succeeded in forecasting demands effectively, our freight platform ensured the right transport for each demand at the best price. “Although, it was somewhat challeng- ing in the second quarter of 2020, we re- cuperated fast and got back on the track. March was a pre-COVID high for us in terms of business. Among the markets, Saudi Arabia and North Africa presented us with maximum growth and traction. In 2020, TruKKer saw an increased 3.5 times growth from the previous year. The digital native generation has been the necessary fuel for our growth, and we hope it will only increase with time as digital tightens its grip and we increase our digital endeavours.” As eCommerce shows no slowing, TruKKer hopes to tap into new address- able markets worth over USD200 billion across 20 countries in the coming years. Anish adds: “Apart from tapping into new markets, we want the TruKKer platform integrated into the daily ship- ping operations. It’s envisioned to become a disruptive force for the traditional brokers business model, accounting for a double-digit share of the addressable market.” Trukkin, another technology cloud- based techno-logistics platform, is also looking to capitalise on the boom and accommodate the increase in demand of services. Janardan Dalmia, Founder and CEO at Trukkin, says: “Trukkin has always been a technology-first company. We use Artificial Intelligence, Internet of Things, and a well-researched, highly in- novative user interface to fulfil our clients’ logistics requirements. Our highly scal- able platform can empower thousands of users, shippers, transporters, and drivers at the same time while ensuring reliability and efficiency consistently. “Our platform was always built to accommodate large surges in traffic and constantly changing requirements. This has helped us always stay online and available where other competitive plat- forms may struggle.” Trukkin has seen a boom in growth in the region and Pakistan, where is recently expanded to. Janardan explains: “The GCC and Pakistan have seen a massive uptake in business as economies struggle to get back to near-normalcy, movement of goods has increased. With our large partner base and robust systems in place, we have been able to ride the wave of suc- cess throughout 2020 and into 2021.” “While we succeeded in forecasting demands effectively, our freight platform ensured the right transport for each demand at the best price.” “Our platform was always built to accommodate large surges in traffic and constantly changing requirements. This has helped us always stay online and available where other competitive platforms may struggle.” COVER STORY LNME
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24 | LOGISTICS NEWS ME | MARCH 2021 WWW.CBNME.COM Limited capacity, shortage of supplies, lack of coordination, national security issues, and misinformation are some of the issues impacting the COVID-19 vaccine rollout, according to JAGGAER SUPPLY CHAIN LNME J AGGAER, the world’s largest independent spend management company, has underscored the need for supply chain risk mitigation procedures within businesses following the difficulties surrounding the COVID-19 vaccine distribution experienced in Europe and America. Countries worldwide, including many in Europe, have been put under considerable strain as demand for the vaccine has considerably outpaced supply. According to data tracked by Bloomberg, some 4.25 million doses are being given daily, with Israel, the UAE, Seychelles and the UK leading the way in terms of doses per 100 people. Thomas Dieringer, President for Europe Middle East and Africa, JAGGAER said: “With any supply chain, it is vital to be aware of the risks and everything that could go wrong. “National security issues, poor coordination, limited capacity, misinformation, shortage of personnel, vaccine damage and logistical difficulties in reaching rural areas have all contributed to the challenges faced by many countries. Supply shortages to make the vaccine has been perhaps one of the major issues. Distribution has been hampered by the drug makers inability to produce the number of vaccines initially planned. The vaccine com- prises several components and raw materials that have been subject to a fragile supply chain, built at record speed. Understandably delays have occurred as a result of setting up supply chains while still developing the vac- cine.” According to JAGGAER, there are several critical sup- ply chain mitigation steps to address the issue. These re- volve around business impact analysis, assess and moni- VACCINE DISTRIBUTION CHALLENGES
LOGISTICS NEWS ME | MARCH 2021 | 25 tor existing suppliers, reduce the concentration of supply, work hand-in-hand with sup- pliers and proactively manage supply chain threats. COVID-19 has had far- reaching impacts on a range of business around the world, according to research released by the Institute of Supplier Management in the whitepa- per, COVID-19 and Supply Chains: Increasing impacts, decreasing revenues, 95% respondents, stated that their supply chains have been or will be impacted by COV- ID-19’s spread. Furthermore, the results also revealed that one in five stated continuity disruption as one of the top three impacts. “Understanding when the supply chain has been impact- ed, and indeed what suppliers have been impacted is crucial. However, perhaps even more important is a system that supports finding alternatives to ensure any disruption is minimised,” said Dieringer. Greater visibility into sup- ply, not just immediate sources such as distributors, but visibility into upstream suppliers of materials and components is crucial. In turn, distributors need to understand the demand from their customers better and share this knowledge with manufacturers. The crisis has illustrated the need for broad visibility into both demand and supply across the entire system. Organisations must utilise digital supply networks rather than relying on the conven- tional linear supply chain model to achieve greater visi- bility. Digital supply networks are dynamic and integrated and will increasingly rely on artificial intelligence tech- nology to provide fast and continuous information and analytics flows. This can em- power organisations to stay connected with their entire supply network and deal with major disruptions such as those caused by Covid-19. There also needs to be greater cooperation at a local, regional, and international level, in particular, to develop contingency plans to prepare for the next crisis. “Although none of us could have prepared for COVID-19, one thing we have seen is those businesses who invested in procurement technology are those that have been able to adapt quickest, pivot and ensure business continuity,” he concluded. Thomas Dieringer, president for Europe, Middle-East and Africa, Jaggaer “The vaccine comprises several components and raw materials that have been subject to a fragile supply chain, built at record speed. Understandably delays have occurred as a result of setting up supply chains while still developing the vaccine.” VACCINE DISTRIBUTION CHALLENGES | ISSUES IMPACTING THE COVID-19 VACCINE ROLLOUT
26 | LOGISTICS NEWS ME | MARCH 2021 WWW.CBNME.COM E mirates SkyCargo has signed an agreement with UNICEF to prioritise the transport of COVID-19 vac- cines, essential medicines, medical devices and other critical supplies to help fight the COVID-19 pandemic. The announcement is the latest in a series of measures undertaken by the freight division of Emirates to sup- port global communities in recovering from the devastating impact of COVID-19. The Humanitarian Airfreight Initiative spearheaded by UNICEF brings together a number of partners collectively capable of distributing essential supplies to more than 100 markets in support of the COVAX Facility, the global effort aimed at equitable access to COVID-19 vaccines. UNICEF’s Humanitarian Airfreight Initiative will also act as a blueprint for collective global partnership in the face of future health and humanitarian crises. “Every single day counts in the fight against COVID-19 and the sooner that communities can have access to COVID-19 vaccines, the sooner they can curb the spread of the virus and get back on their feet. As a global player flying to more than CARGO LNME COVID-19 vaccine distribution Emirates SkyCargo to work with UNICEF Under UNICEF’s Humanitarian Airfreight Initiative, Emirates will prioritise transport and delivery of COVID-19 vaccines and related supplies Initiative in support of COVAX facility for equitable distribution of COVID-19 vaccines
LOGISTICS NEWS ME | MARCH 2021 | 27 130 destinations, Emirates SkyCargo has been committed to the fight against the pandemic from the very early stages and we have rolled out a number of initiatives to expedite the distribution of COVID-19 vaccines through Dubai, starting with our GDP certified dedicated airside hub. Through our partnership with UNICEF, we will be taking yet another step to prioritise and facilitate the rapid and secure movement of COVID-19 vaccines particularly to communities hard hit by the disease,” said Nabil Sultan, Emirates Divisional Senior Vice President, Cargo. Emirates SkyCargo is an industry leader in the air cargo sec- tor for the transport of temperature sensitive pharmaceuticals including vaccines. The cargo carrier features a global network spanning six continents, a modern fleet of widebody only air- craft as well as state of the art EU GDP certified infrastructure at its hub in Dubai for the secure transport of pharmaceuticals and vaccines. In October 2020, Emirates SkyCargo announced that it was setting up the world’s largest EU GDP certified airside distribution hub dedicated for the storage and distribution of COVID-19 vaccines. With over 15,000 sq metres of storage space available for vaccines, Emirates SkyCargo is able to store large quantities of the COVID-19 vaccine in Dubai, and fly in smaller quantities regularly to markets with limited cold chain infrastructure, reducing the need for large scale storage solu- tions. In January 2021, under the directives of Vice President and Prime Minister of the UAE and Ruler of Dubai HH Sheikh Mohammed bin Rashid Al Maktoum, Emirates SkyCargo joined hands with three other Dubai-based entities- DP World, International Humanitarian City and Dubai Airports to form a COVID-19 vaccine alliance for rapid transport of COVID-19 vaccines to the developing world through Dubai. EMIRATES SKYCARGO TO WORK WITH UNICEF FOR COVID-19 VACCINE DISTRIBUTION
28 | LOGISTICS NEWS ME | MARCH 2021 WWW.CBNME.COM MOBILITY LNME GLOBAL AUTOMOTIVE MOBILITY STUDY from Arthur D. Little highlights market uncertainty
LOGISTICS NEWS ME | MARCH 2021 | 29 GLOBAL AUTOMOTIVE MOBILITY STUDY FROM ARTHUR D. LITTLE HIGHLIGHTS MARKET UNCERTAINTY A rthur D. Little (ADL) re- leased the third edition of its Global Automotive Mobility Study. Entitled ‘The Future Of Automotive Mobility’ and based on a global survey of over 8,500 end customers in 13 countries, it shows that global automotive markets are currently at a crossroads. While the study identifies that the internal combus- tion engine still dominates the market, many vehicle owners are weighing up the pros and cons of going electric – as a result, there is confusion about where the automotive sector is heading and at what speed. Whereas ADL’s previous Global Auto- motive Mobility Study in 2018 depicted a ‘business as usual’ industry only just tak- ing its first steps towards electric, the mo- bility landscape three years later is mark- edly different. For example, there has been a dramatic change in both demand for cars and how ownership of them is perceived – while the COVID-19 pandemic has highlighted the protection and independ- ence that a private car offers, a significant number of people are contemplating giving them up for environmental reasons and embracing alternative transport solutions. The auto industry’s 2% compound annual growth rate is much less than ADL’s last survey predicted. The study also shows that the move away from petrol and diesel fueled vehicles is real and growing stronger – asked about their next vehicle, 29% of survey respond- ents favored a hybrid product, while 12% were considering the move to pure electric. And if established brands don’t provide an EV offering, many of their customers are ready to migrate to other manufacturers. However, market growth is hampered by both limited model range and an immature charging infrastructure, with vehicle range still dictated by the availability of public charging points. One of the study’s most intriguing find- ings is the emergence of China as a ‘special market’ with markedly different attitudes to consumers in the rest of the world. For instance, while excitement over self-driving autonomous vehicles has dimmed in both Europe and the US due to safety fears, 71% of Chinese drivers remain positive about using such vehicles. They are also more adventurous in trying new power- trains, mobility services, and even purchase options – 71% of drivers in China would be willing to buy a car wholly online, against 35% in Europe and 42% in the US. Given the size of China’s domestic market, these attitudes could have signifi- cant implications for the global automo- tive industry. Klaus Schmitz, co-author of the study and Partner in ADL’s Automotive and Manufacturing Practice, comments: “While the global automotive industry isn’t exactly in turmoil, the findings of this study definitely indicate significant turbulence, plus an uncertainty about the speed and direction of the market. Estab- lished trends are meeting new, emerging ones, which has inevitably led to a state of flux. We believe that the industry faces four main market-related challenges: how to better anticipate changes in vehicle demand and ownership profile; how to better transition towards electric; how to profitably grow the mobility services seg- ment; and how to optimize the new value chain.”Wolf-Dieter Hoppe, co-author of the study and Partner in ADL’s Automotive and Manufacturing Practice, adds: “Given the degree of uncertainty in the sector, the automotive industry needs to develop a better understanding of the modern driver’s priorities if it is to fully exploit electric’s potential and counter concerns over autonomous vehicles. This will re- quire an evaluation of current investments and an informed calculation about how markets and the value chain will look in ten years. For those manufacturers who get this right, there will be significant op- portunities.” “THE STUDY SHOWS THAT THE MOVE AWAY FROM PETROL AND DIESEL FUELED VEHICLES IS REAL AND GROWING STRONGER – ASKED ABOUT THEIR NEXT VEHICLE, 29% OF SURVEY RESPONDENTS FAVORED A HYBRID PRODUCT, WHILE 12% WERE CONSIDERING THE MOVE TO PURE ELECTRIC.” Wolf-Dieter Hoppe Klaus Schmitz
30 | LOGISTICS NEWS ME | MARCH 2021 WWW.CBNME.COM OP-ED LNME C omputing Machinery and Intelligence’, the seminal paper by Alun Turing, posed the question “Can machines think?” Turing’s research proved that a digital com- puter could simulate the behaviour of any other digital machine, given enough memory and time. AI, which was originally coined by American academic John McCarthy in 1956, involves creating algorithms and programmes that allow computers to fol- low hundreds of millions of instructions, thanks to significant improvements in data-processing power and the advent of big data. Machine learning AI is now a key component in today’s manufacturing plants and machine learn- ing is rapidly being adopted across many industries. It is no surprise, therefore, that according to Research and Markets, the machine learning market is predicted to grow to GBP6.39 billion by 2022. As the market grows, new types of ma- chine learning will emerge, allowing new applications to be explored. In fact, there are already two types of machine learn- ing, called supervised and unsupervised. Supervised learning identifies inputs and outputs and trains algorithms using la- belled examples. It also uses methods like classification, regression, prediction, and gradient boosting for pattern recognition, before using these patterns to predict the values of the labels on the unlabelled data. Unsupervised learning, on the other hand, works with datasets without histor- ical data. It explores collected data to find a structure and identify patterns. In ad- dition, unsupervised machine learning is now being used in factories for predictive maintenance purposes. For instance, ma- chines can learn the data and algorithms responsible for causing faults in a mo- tor, enabling them to identify potentially costly problems before they arise. Advanced machine learning has allowed computers to solve problems without Marek Lukaszczyk, European and Middle East Marketing Manager at motor and drive manufacturer WEG, shares how machine learning has led to an effective digital manufacturing environment in which the potential of artificial intelligence (AI) in electric motor and drive applications could soon be unleashed CAN MACHINES THINK?
LOGISTICS NEWS ME | MARCH 2021 | 31 PENNED | CREATING STRONGER BONDS IN SUPPLY CHAIN needing to follow a comprehensive list of instructions. This allows powerful pro- grammes, which are based on neural net- works, to be trained to perform specific tasks, carrying huge potential for motor and drive applications. Motion control Design engineers want to harness this po- tential and introduce the power of AI to motors, for advanced motion control. For example, embedded algorithms could be used, based on information provided by intelligent sensors, to alleviate some com- mon motor performance limitations. Essentially, these systems compare a data-based model of motor performance with real time analytics to correct per- formance issues with voltage commands, generating torque when phase faults arise. The goal of these systems is to minimise the impact from phase faults, making them more manageable, especially in criti- cal safety situations. Additionally, these motors can boost motion control performance by improv- ing efficiency, uptime, and energy con- sumption. By using WEG’s Motor Scan, the performance of electric motors can be monitored with sensors, which facilitates predictive maintenance. Once installed onto the motor, WEG’s Motor Scan tech- nology uses these sensors to send data to the cloud for analysis, alerting operators to suboptimal data trends. What the future holds In the past, technology was simply too expensive to measure the temperatures in an electric motor. Since then, however, sensors have developed and become much more accessible. For example, thermal protection is achieved by monitoring the temperature of the motor windings. By using Positive Temperature Coefficient (PTC) sensors, thermistors can be installed into the mo- tor windings to protect the motor against locked-rotor conditions, continuous over- load, and high ambient temperature. Going forward, scientists from the De- partment of Power Electronics and Elec- trical Drive Technology at the University of Paderborn, aim to develop software capable of estimating the temperatures at certain points. As part of the project, funded by the German Research Founda- tion (DFG), researchers are using AI and machine learning to find new models for estimating the temperature in drives and other power engineering applications. This involves training their software, with a software testing method that ex- amines the functionality of an application without peering into its internal struc- tures, and test-bench measurements, to obtain precise temperature readings. Looking back, what Turing was really seeking to develop was an integral vi- sion of what we call intelligence. He used machines for this purpose because they can solve tasks that humans could too. This is not to say a simulated intelligence surpasses a real one, or a machine can solve problems that a person cannot, but more that they can replicate basic human actions. In fact, Turing’s research proved that a digital computer could simulate the behaviour of any other digital machine, which has led to digital manufacturing as we know it. AI holds huge potential, especially for electric motor and drive ap- plications, but research still has some way to go. GOING FORWARD, SCIENTISTS FROM THE DEPARTMENT OF POWER ELECTRONICS AND ELECTRICAL DRIVE TECHNOLOGY AT THE UNIVERSITY OF PADERBORN, AIM TO DEVELOP SOFTWARE CAPABLE OF ESTIMATING THE TEMPERATURES AT CERTAIN POINTS.
32 | LOGISTICS NEWS ME | MARCH 2021 WWW.CBNME.COM A bu Dhabi Ports, part of ADQ, one of the region’s largest holding companies, has signed an agreement with Transportr Ltd to man- age its inland container depot (ICD) in Musaf- fah, provide handling facilities within the ICD and deliver fully inclusive transportation solutions for containers between the ICD and Khalifa Port. Transportr is an Abu Dhabi-based digi- tal freight platform that connects shippers to carriers locally and regionally. The platform saves money for shippers and increases earnings for carriers while digi- talizing the entire freight lifecycle. Trans- portr provides inland, cross border and sea freight shipping services to clients in UAE, and has plans to extend its services regionally. Transportr entered into agree- ment with shippers and truckers and ef- ficiently managed to move a total of 4,000 truckloads locally, 2,000 truckloads cross border and over 10,000 containers in sea freight in less than 6 months. The agreement will not only improve connectivity between Transportr’s depot located within Ittihad Paper Mill LLC and Khalifa Port, but will also aid in reducing costs for transport of containers, while simultaneously improving the efficiency of the supply chain. Transportr had already secured the movement of over 15,000 TEUS for 2021 from several prominent industrialists located in ICAD 1, 2 and 3, and is expected to increase the handling to over 20,000 TEUs over the course of next year. Saif Al Mazrouei, Head of Ports Cluster at Abu Dhabi Ports, said: “We are proud to have been selected by Transportr to handle the transportation of their goods between Khalifa Port and their inland container depot in Mussafah. “Leveraging our expertise in delivering top of the line logistics services, as well as our long-standing experience as a facilita- tor of trade within the emirate of Abu Dhabi, we will aid Transportr in reducing costs and streamlining their operations. “Connectivity for the entire Musaffah trade will also be improved through re- duced waiting times, increased availability and integration with shipping lines.” Alaa Hawari, General Manager of Transportr, said: “We’re tremendously excited to work closely with Abu Dhabi Ports, the region’s primary facilitator of industrial logistics. “The ICD establishment at the heart of Mussafah will be instrumental as we tar- get significant strengthening of our digital freight marketplace operations and infra- structure, in addition, to collectively ad- dress the challenge of empty miles within the industry. “Transportr’s unique ICD logistics model along with its efficient digital freight network will provide customers with access to a new fully integrated lo- gistics model for servicing diverse range of cargo.” Under the new contract, Abu Dhabi Ports will bring forth its full logistic capabilities to oversee inward and out- ward container handling at Khalifa Port, delivery of orders, processing customs documentation and procedures, container terminal handling, truck loading and un- loading, as well as container inspections. At the same time, the company will provide ICD-related container handling services as part of the contract offering shipping lines, local importers, and or exporters the ability to collect and offload containers within the ICD. In addition to assisting Transportr, one of the fastest-growing digital freight platform in the UAE, in achieving greater economies of scale through reduced trans- portation costs — thanks to the utilisation of mixed-sized containers to and from its Mussafah-based ICD — the operation is expected to improve supply between the companies under the group’s umbrella via an ongoing shuttle service. CONTAINER TRANSPORTATION SERVICES Abu Dhabi Ports accelerates transport’s inland container depot with premium logistics services Mohammad Shihab, Managing Director, Maersk Saudi Arabia PORTS LNME “LEVERAGING OUR EXPERTISE IN DELIVERING TOP OF THE LINE LOGISTICS SERVICES, AS WELL AS OUR LONG-STANDING EXPERIENCE AS A FACILITATOR OF TRADE WITHIN THE EMIRATE OF ABU DHABI, WE WILL AID TRANSPORTR IN REDUCING COSTS AND STREAMLINING THEIR OPERATIONS.”
34 | LOGISTICS NEWS ME | MARCH 2021 WWW.CBNME.COM REPORT LNME T he UAE’s female lead- ers are embracing digital, are motivated to make a positive impact on the world and optimistic about the growth of their business despite pandemic-related chal- lenges. This, according to the third edition of KPMG’s UAE Female Leaders Outlook. The report examines economic and business outlooks, risks and opportunities, as well as career and gender diversity factors; highlighting notable differ- ences with global findings and comparisons with the previous edition of the UAE report. Marketa Simkova, Partner, Head of People & Change at KPMG Lower Gulf, said: “Even as governments and organizations swiftly adopted measures to tackle the pandem- ic, it brought profound per- sonal and professional changes for a disproportionate number of women in the workforce. However, our 2020 survey has found UAE female leaders less pessimistic about Covid-19’s impact. In fact, some female leaders believe the crisis may unlock new growth opportuni- ties from advances in technol- ogy and changed stakeholder expectations.” Embracing Covid-19-related changes Today’s leaders face a multi- tude of obstacles, stemming in large part from the current pandemic. A large-scale shift to remote work, changes in stake- holder expectations and the in- creased importance of environ- mental, social and governance (ESG) performance, among many others. Operational risk, followed by disruptive tech- nologies and talent risk, will likely remain key concerns for the near term. However, 67% of UAE women leaders believe their company has potential to grow in the next three years. KPMG findings indicate more than half (55%) of UAE female leaders found their pre-Cov- id-19 business models enabled the shift to and/or focus on digital. Further highlighting the importance of digitalization, nearly all of them (95%) are confident that digital economy and e-commerce companies will emerge winners from the current crisis. Optimistic Outlook UAE women leaders are more optimistic about revenue growth and digitalization than their global peers, while striving to make a positive impact, KPMG report reveals Mohammad Shihab, Managing Director, Maersk Saudi Arabia
LOGISTICS NEWS ME | MARCH 2021 | 35 UAE FEMALE LEADERS BELIEVE COMBATING CLIMATE CHANGE WILL BE OF EVEN GREATER IMPORTANCE IN THE POST-COVID-19 ERA, ACCORDING TO THE KPMG REPORT. IMPLYING A LONG-TERM COMMITMENT, NINE OUT OF TEN (89% IN UAE, 57% GLOBALLY) WANT TO LOCK IN SUSTAINABILITY AND CLIMATE CHANGE GAINS MADE AS A RESULT OF THE CRISIS. Three out of ten (28%) UAE female leaders believe combating climate change will be of even greater importance in the post- Covid-19 era, according to the KPMG report. Implying a long- term commitment, nine out of ten (89% in UAE, 57% globally) want to lock in sustainability and climate change gains made as a result of the crisis. Three-quarters (73%) of female leaders in the UAE ranked ‘making a positive impact on the world’ as one of the top three factors motivating them, compared with 57% globally. This was followed closely by ‘enabling long-term busi- ness success.’ A diversified agenda Despite clear progress and strong support from the government, nearly all UAE female leaders (95%) indicate there is more to be done to build gender diversity on boards and at management level. Almost two-thirds (61% in UAE, 43% globally) indicated that targets or quotas may be an effective approach. Regarding discrimination and racism, nearly two thirds (61%) of UAE female leaders (41% globally) believe recent measures taken by their company have had a positive impact; 78% expect recent progress will not be affected by Covid-19. On the gender pay gap, UAE figures show a significant and positive change compared with last year. In 2020, six out of ten UAE-based female leaders (61%, 46% globally) confirmed their company is transparent regarding equal pay, compared with only 26% in 2019. Despite the pandemic’s socio-economic impact, four out of ten female leaders in the UAE (44%) do not believe Covid-19 will have an impact on their career. This is aligned with KPMG’s global findings. Maryam Zaman, Partner, Head of Corporate Governance at KPMG Lower Gulf, concluded: “Our survey shows that for UAE women leaders, making a positive impact on the world is both a personal and commercial imperative. In line with the renewed focus on ESG policies, employees are most motivated by a meaningful and purposeful work environment. Companies looking to retain and attract talent, will have to compete in this digitalized and dynamic environment, while meeting fundamen- tally changing values and priorities.” About KPMG UAE Female Leaders Outlook The KPMG UAE Female Leaders Outlook: Covid-19 special edition offers insight into how local female leaders are reacting to rapidly evolving events. In the last quarter of 2020, KPMG surveyed 675 female leaders around the world from 52 coun- tries and territories, including 18 in the UAE. Fifty percent of UAE-based participants hold senior manage- ment positions, such as CEO, chairwoman or C-level executive. The remaining 50% comprised vice presidents, heads of depart- ment/business units and founders. A majority of the women surveyed (78%) had children. OPTIMISTIC OUTLOOK | UAE WOMEN LEADERS Marketa Simkova, Partner, Head of People & Change at KPMG Lower Gulf Maryam Zaman, Partner, Head of Corporate Governance at KPMG Lower Gulf
36 | LOGISTICS NEWS ME | MARCH 2021 WWW.CBNME.COM T he University of Birmingham announced a three-year research project with Bentley Motors to deliver a sustainable source of rare earth magnets for electric and hybrid vehicles for one of the most sought-after luxury car brands in the world. The GBP2.6 million (Dhs13.3 million) RaRE (Rare-earth Recycling for eMachines) project is funded by the Office for Low Emission Vehicles (OLEV) and delivered in partnership with Innovate UK and involves six partners who will work together to establish the first end- to-end supply chain of recycled rare earth magnets in the UK. Low carbon producer Rare earth magnets are found in almost every appliance that uses electricity to generate motion. In the last 30 years their use has increased exponentially, and although they are increasingly important in the transition to a low carbon economy, less than 1% of these magnets is recycled. RaRE will build on an innovative technology developed by Professor Allan Walton and Professor Emeritus Rex Harris of the University of Birmingham’s Magnetic Materials Group, the only research group in the UK focused on processing and recycling permanent rare earth magnetic materials. The technology, called Hydrogen Processing of Magnet Scrap (HPMS), extracts rare earth metals from waste electronics by breaking them into a powder that is easily separated from remaining components. The project will help create a technique to recycle magnets removed from computer hard drives to make rare earth magnets to assist supply chain for luxury cars Rare earth magnets LNME INNOVATION
LOGISTICS NEWS ME | MARCH 2021 | 37 RARE EARTH MAGNETS TO ASSIST SUPPLY CHAIN FOR LUXURY CARS The technology was patented by University of Birmingham Enterprise, and subsequently licensed to HyProMag Ltd, the company that was set up by the Birmingham researchers. HyProMag has since received substantial investment from Mkango Resources, which will be fully funding HyProMag’s contribution to RaRE. Magnet recycling The project will develop a process to recycle magnets extracted from computer hard drives to make rare earth magnets for use in bespoke ancillary motors and will involve HyProMag scaling up the recycling techniques developed at the University of Birmingham. The University will also provide cast alloys, which HyProMag will blend with secondary materials to produce the ‘sintered’ magnets, which are formed by press moulding the metal powders. Nick Mann, Operations General Manager at HyProMag, stated: “RaRE is an exciting project and a fantastic opportunity. HyProMag’s recycling technologies allow us to produce NdFeB magnets with a much lower embedded carbon cost than using virgin supply and with independence from Chinese supply and we are working closely with our major shareholder Mkango Resources to further grow the business. “We are proud to be working with established, innovative and renowned companies in the RaRE project with whom we can showcase the technologies of the RaRE project as a whole – recycled magnets being used for cutting edge products in a prestige application.” In addition to the University, Bentley and HyProMag, the other partners in the RaRE project are: > Unipart Powertrain Applications Ltd, which will lead the development of manufacturing scale up routes to ensure facilities and processes defined are suitable for volume automotive manufacture. > Advanced Electric Machines Research Ltd, leading on the design and development of the motors. > Intelligent Lifecycle Solutions Ltd will pre-process computer hard disk drives to remove the rare earth magnet containing components from the waste, which will be shipped to HyProMag for recycling of the rare earth magnets. Jon Bray, R&D Manager, Office for Zero Emissions Vehicles commented: “We are excited to be supporting this innovative project as part of our ambition to put the UK at the forefront of the design, manufacture and use of zero emission vehicles.” “WE ARE PROUD TO BE WORKING WITH ESTABLISHED, INNOVATIVE AND RENOWNED COMPANIES IN THE RARE PROJECT WITH WHOM WE CAN SHOWCASE THE TECHNOLOGIES OF THE RARE PROJECT AS A WHOLE – RECYCLED MAGNETS BEING USED FOR CUTTING EDGE PRODUCTS IN A PRESTIGE APPLICATION.” Nick Mann
38 | LOGISTICS NEWS ME | MARCH 2021 WWW.CBNME.COM I nspired by the VISION concept tire introduced in 2017, an airless, connected, rechargeable and entirely sustainable solution, the Michelin Group is committed to making its tires 100% sustainable by 2050. Today, nearly 30%* of the compo- nents used in the manufacture of tires produced by the Michelin Group are already made from natural, recycled or otherwise sustainable raw materials. A Michelin tire is a high-tech product comprising more than 200 ingredients. The main one is natural rubber, but the many ingredients also include synthetic rubber, metal, fibers and components that strengthen a tire’s structure, like carbon black, silica and plasticizers (resins, etc.). Incorporated in perfect proportions, these materials interact to deliver an optimal balance of perfor- mance, driveability and safety, while steadily reducing the tire’s environmen- tal impact. An objective being met with powerful R&D capabilities Michelin’s maturity in materials technology stems from the strength of its R&D capabilities, which are supported by 6,000 people working in seven research and development centers around the world and mastering 350 areas of expertise. The commitment of these engineers, researchers, chemists and developers has led to the filing of 10,000 patents covering tire design and manufacturing. They work hard every day to find the recipes that will improve tire safety, durability, ride and other performance features, while helping to make them 100% sustainable by 2050. Bold partnerships with innovative companies Michelin is also aware that the speed and nature of innovation requires new forms of cooperation, which is why it has forged partnerships with innova- tive companies and start-ups whose advances offer unlimited prospects. The developed technologies go well beyond the world of tires and could be used in other industries, enabling them to benefit as well from recovered raw ma- terials that are infinitely reusable. These technologies will also make it possible to recycle polystyrene and recover carbon black or pyrolysis oil from used tires. Axens and IFP Energies Nouvelles, the two companies that are spearhead- ing the BioButterfly project, have been working with Michelin since 2019 on producing bio-sourced butadiene** to replace petroleum-based butadiene. Us- ing the biomass from wood, rice husks, leaves, corn stalks and other plant waste, 4.2 million tonnes of wood chips could be incorporated into Michelin tires every year. Signed in November 2020, the partnership between Michelin and Canada-based Pyrowave can produce recycled styrene from plastics found in packaging, like yogurt pots and food trays, or in insulating panels. Styrene is an important monomer used to manu- facture not only polystyrene but also synthetic rubber for tires and a wide variety of consumer goods. Eventually, several tens of thousands of tonnes of polystyrene waste could be recycled back into its original products as well as into Michelin tires every year. The revolutionary process developed by French startup Carbios uses enzymes to deconstruct PET*** plastic waste into its original pure monomers, which can be infinitely recovered and reused to make new PET plastics. One of these recovered plastics just happens to be the polyester yarn used in tire manufactur- ing. Some four billion plastic bottles could potentially be recycled into Michelin tires every year. Lastly, Michelin announced in Febru- ary 2021 that it will launch the con- struction of its first tire recycling plant in the world with Enviro. This Swedish company has developed a patented technology to recover carbon black, pyrolysis oil, steel, gas and other new, high-quality reusable materials from end-of-life tires. It will enable everything in these tires to be recovered and reused in several types of rubber-based produc- tion processes. Michelin also supports the circular economy, as attested by its participation in the European BlackCycle consortium. This project, which is coordinated by the Group and financed by the Euro- pean Union, brings together 13 public and private-sector partners to design processes to produce new tires from end-of-life tires. SUSTAINABILITY LNME 100% SUSTAINABLE IN 2050 By 2050, Michelin tires will be made entirely from renewable, recycled, biosourced or otherwise sustainable materials
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