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T R U C K S Renault Trucks gradually open plants D I G I T A L One Click Delivery Services Sees Surge In Growth W A R E H O U S E S Middle East’s first ‘Smart hub’ logistics warehouse launched CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE MAY 2020 Logistics News ME looks into how ports and terminals are operating in 2020, why their locations are strategic for their partners, and the key role that technology and automation plays
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LOGISTICS NEWS ME | MAY 2020 | 3 MAY 2020 CONTENTS START 10 | NEWS FEATURES 18 | ANALYSIS 20 | CARGO 24 | COVER 30 | DIGITAL 32 | TRUCKS 34 | WAREHOUSES 36 | SUPPLIER FOCUS FIND US ON YOUTUBE Subscribe to our YouTube channel to see things like site visits, interviews and much more CONTENTS M A Y 2 0 2 0 R E A D A L L T H E L A T E S T I S S U E S O N I S S U U 24 32 10 20 WEBSITE: WWW.CBNME.COM/LOGISTICS-NEWS TWITTER: @LOGISTICSNEWSME FACEBOOK: /LOGISTICSNEWSME
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6 | LOGISTICS NEWS ME | MAY 2020 WWW.CBNME.COM EDITOR’S LETTER MAY 2020 subscriptions@bncpublishing.net CEO Wissam Younane wissam@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Group Publishing Director Joaquim D›Costa jo@bncpublishing.net +971 50 440 2706 Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818 Editor Kasun Illankoon kasun@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net Marketing Executive Aaron Joshua aj@bncpublishing.net Photographer Ahmad Khader PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 For all commercial enquiries related to Logistics News ME contact sales@bncpublishing.net All rights reserved © 2015. Opinions expressed are solely those of the contributors. Logistics News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Logistics News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Logistics News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by UPP ON THE WEB Keep up to date with all the latest news, features and much more on our website. W W W . C B N M E . C O M / L O G I S T I C S - N E W S S U B S C R I B E UAE residents are increasingly turning to home delivery options for their groceries amid so-cial distancing and movement restrictions designed to minimise the impact of COVID-19, ac-cord- ing to analytics from SEMrush, the award-winning digital marketing platform. Searches related to ‘online grocery’ in the UAE grew a massive 560 per cent between Janu-ary 2020 – when the first COVID-19 case was announced in the UAE – and March 2020. Searches for ‘online pharmacy’ jumped 238 per cent, while ‘pharmacy delivery’ searches climbed 184 per cent. Delivery aggregators and consumer goods providers also saw steady increases in search volume with Zomato seeing a 55 per cent search volume increase during the same period, while Uber Eats searches rose by 96 per cent and Amazon searches climbed 44 per cent. Collectively, fast food sites have seen a 33 per cent increase in search volumes, with big winners like Dominos and Subway seeing increases of 40 per cent and 61 per cent, respectively. Similar trends have been witnessed around the world, with online shopping seeing a 50 per cent increase in Germany, a 122 per cent increase in Japan and a 108 per cent increase in Korea. Kasun Illankoon Editor, Logistics News Middle East A NOTE FROM THE EDITOR K A S U N I L L A N K O O N
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10 | LOGISTICS NEWS ME | MAY 2020 WWW.CBNME.COM REGIONAL NEWS LOGISTICS Saudi Arabian Logistics (SAL) has moved some of its services to the newly-launched facilities at King Khalid International Airport (KKIA). This comes in line with SAL new operational plan aiming to enhance ground-handling services and streamline the cargo acceptance procedures through the village, which is a global integrated logistics platform for cargo and supply services. Three quality and important services will be SAL LAUNCHES STATE-OF-THE-ART FACILITIES AT KING KHALID INTERNATIONAL AIRPORT area of 67,000 square meters. There are 10 aircraft aprons and 15 docks for loading and unloading goods inside trucks. There are free parking areas for customers as well. The Saudi Arabian Logistics is the main cargo gate in Saudi airports and the only logistic platform linking all airports and facilitating ground handling services, electronic commerce activities, land transportation, warehouse management and storage solutions. provided from the new venue during the first phase, which are export cargo handling, domestic cargo handling and express mail services effective April 20th, 2020. SAL CEO Omar Hariri said the new facilities are a major leap in the company’s progress because the Cargo Village offers capabilities. He noted that the village is the first of its kind in the region and was launched last January to contribute effectively to trade growth and enhance all logistic services. “The movement of ground handling services to the new facilities will undoubtedly enhance the cargo operations being provided during the COVID-19 crisis and ensure the continuity of the logistic operations and the flow of cargos,” he explained. The SAL customers will get faster services as the operational capacity has doubled and will reach 450,000 tons a year at a total A N U P D A T E F R O M A R O U N D T H E R E G I O N REGIONAL NEWS
LOGISTICS NEWS ME | MAY 2020 | 11 MAY 2020 RAIL Maqta Gateway, the digital arm of Abu Dhabi Ports, has expanded its digital logistics solution, Margo, with the addition of a new commercial offering for warehouse storage. The new offering presents customers with the unique opportunity to book standard warehouses or specialised temperature controlled- storage facilities to safely store their perishable goods including food Items and medical supplies for short MAQTA GATEWAY EXPANDS ITS DIGITAL LOGISTICS MARKETPLACE “MARGO” and medium periods of time, through simplified paper- free booking processing and remotely-managed reservations. This new service leverages the simplicity, convenience and cost effectiveness of the existing Margo platform. Among the current warehouse offering, customers can book Grade A warehouse facilities, one of the highest industry standards achievable within warehouse management and storage, which also are conveniently located in the heart of the Khalifa Industrial Zone Abu Dhabi (KIZAD) and easily accessible from Abu Dhabi and Dubai. Dr. Noura Al Dhaheri, CEO of Maqta Gateway and Head of Digitalisation Cluster at Abu Dhabi Ports, said: “We are pleased to bolster the capabilities of our highly- acclaimed Margo platform, through providing innovative solutions for customers in search of a short and medium- term storage for their goods., through a streamlined digital service that is user friendly, efficient and cost effective.” “In recognition of the collective efforts to combat the COVID-19 and considering that storage of food and medical supplies are of highest priority in these pressing times, I am pleased to announce that we will be waiving Margo Warehouse’s processing fees in the interim period for such facilities following its launch.”
12 | LOGISTICS NEWS ME | MAY 2020 WWW.CBNME.COM REGIONAL NEWS COVID-19 COVID-19 DHL LEVERAGES GLOBAL NETWORK TO DELIVER PROTECTIVE GEAR TO AFRICA AND MIDDLE EAST DEWA APPLIES PRECAUTIONARY MEASURES TO CONTINUE DELIVERING SERVICES DURING COVID-19 DHL Global Forwarding has launched today a dedicated 100-tonne weekly air freight service for organizations and governments shipping goods from China to Africa and the Middle East where much- needed personal protective gear will make up the bulk of the cargo. With its geographical location and superior infrastructure as a transit hub, Dubai will play a key role as a gateway between China and the rest of Africa and the Middle East allowing the leading international provider of air, sea and road freight services to consolidate cargo from across China into Guangzhou and air freight them via Dubai to their Dubai Electricity and Water Authority (DEWA) has undertaken a set of precautionary measures to ensure the health and safety of its customers and staff. This is in line with Dubai Government’s efforts to provide the highest level of protection against the novel coronavirus (COVID-19). DEWA has ensured the continuity of its delivery of electricity and water services, according to the highest standards of availability, reliability, and efficiency. DEWA’s staff have undergone training programmes to use technological tools and various destinations across Africa and Middle East, all within two or three days. “DHL Global Forwarding is bolstering logistics support to our customers in the region who need to ensure stable supply chains, especially for medical and critical supplies during this critical period. With multiple flight cancellations that has strained worldwide air freight capacity, we remain committed to leveraging our capabilities, global network and customized solutions to ensure that goods and critical resources continue to reach people and communities in Africa and the Middle East,” said Amadou Diallo, CEO, DHL Global Forwarding Middle East and Africa. channels in its state-of-the- art digital infrastructure over the last few years. This has enabled all of them to work remotely, hold video meetings using modern technologies, and ensure the highest standards of digital security. This applies for employees whose jobs do not require their presence at DEWA’s power plants. Besides the precautionary measures, DEWA has launched several awareness campaigns about the novel coronavirus using different tools and in different languages to ensure awareness messages reach all its employees.
LOGISTICS NEWS ME | MAY 2020 | 13 MAY 2020 Careem, the leading inter- net platform in the MENA region, launches its gro- cery delivery service in Dubai through the Careem NOW app as a way to help customers during this time. The on-demand ser- vice supports customers with the delivery of gro- ceries and other essentials within a quick response time, and continues to re- inforce the Careem prom- ise, to offer customers a continued comprehensive array of services, all dis- played and catalogued on the app. To avail the service, customers only need to download the Careem NOW app, choose their preferred merchant, se- lect from a catalogue of available items and add them to their basket. Upon check out, custom- ers can choose their loca- tion and payment meth- od, and a Careem Captain will deliver the order within the hour, currently the shortest wait times in comparison to other mar- ket timelines. Users of Ca- reem NOW no longer need to use multiple apps for dif- ferent services, with Ca- reem NOW offering food, groceries, organic shops, pharmacies, coffee shops, roasters and pet stores as well as confectionaries and other services across the city. In addition to being the only app to offer Lulu Hypermarket in Dubai, Careem Shops include 7-Eleven, 800-Pharmacy, Al Manara Pharmacy, NE- SCAFÉ® DOLCE GUSTO®, The Pet Corner, The Coffee Souq, Julius Meinl Coffee, Al Dar Roastery, Rootz Organics, Al Douri Signa- ture, Al Douri Mart, Super- marché, Narinport, Four Seasons Pharmacy, and La Despensa Spanish Food Store, to name a few. This launch marks a milestone for Careem, positioning the Super App as a new contender in the grocery and other essentials deliv- ery space. CAREEM INTRODUCES GROCERY DELIVERY SERVICE IN DUBAI
14 | LOGISTICS NEWS ME | MAY 2020 WWW.CBNME.COM REGIONAL NEWS E-COMMERCE EMIRATES SKYCARGO’S E-COMMERCE OFFERING SEES STRONG TAKE-UP IN THE UAE Emirates Delivers, the e-commerce delivery platform launched by the freight division of Emirates has witnessed a strong reception by UAE customers in March and April 2020. A reliable and cost- effective e-commerce shipping solution targeted at individual shoppers and small businesses in the UAE, Emirates Delivers permits consolidation of purchases from multiple online retailers in the US into a single package and have it delivered to an address in the UAE. As customers have turned that they can access through Emirates Delivers.” Despite challenging conditions, including the suspension of all passenger flights from the UAE, Emirates SkyCargo has been connecting Emirates Delivers shipments through its freighter services from the US, offering UAE customers an average transit time of around 7 days. Emirates Delivers offers contactless deliveries for its packages in the UAE keeping in consideration the well-being of its customers and staff. increasingly to shopping online during the Covid-19 pandemic, Emirates Delivers has seen an increase in membership and orders since March 2020. The e-commerce platform saw a month on month jump of 20% in shipments delivered over the last month with customers shopping for a range of items including medicines and supplements, toys and games, fashion and sporting goods. Nabil Sultan, Emirates Divisional Senior Vice President, Cargo said: “Emirates Delivers is a very unique e-commerce offering and we stand by our customers in the UAE during these challenging times to help deliver their valuable shipments from online retailers in the US. Our customers can make use of the 30 day free storage offer in the US and take advantage of the most attractive offers on various e-commerce sites to consolidate their shipments and save on individual shipping costs through the competitive shipping rates
LOGISTICS NEWS ME | MAY 2020 | 15 MAY 2020 TERMINALS CSP ABU DHABI TERMINAL ACHIEVES KEY SHIPMENT AND SAFETY MILESTONES On the occasion of its first year anniversary, Khalifa Port’s CSP Abu Dhabi Terminal, has announced it has accomplished over 800,000 hours without lost-injury time (LTI) and surpassed the 540,000 TEU mark since its operational soft launch last April. Based at Abu Dhabi Port’s flagship port, Khalifa Port, the terminal is the result of a 35- year lease agreement between COSCO SHIPPING Ports Limited (CSP) and Abu Dhabi Ports. Serving as a regional base for COSCO SHIPPING Ports’ global network of 48 terminals, the AED 1.1 billion deep-water, semi- automated container terminal has achieved the important benchmarks after successfully handling 416 vessels, including some of the world’s largest, together with 312,000 cargo movements. Commencing full operations in November 2019, and with a design capacity of 2.5 million TEU, CSP Abu Dhabi Terminal is the first international greenfield subsidiary of COSCO SHIPPING Ports, whose parent company, China COSCO Shipping Corporation Limited, is the largest integrated shipping enterprise in the world. The two records, for safety and TEU’s, were simultaneously achieved, ahead of schedule, in February and March respectively. Captain Mohamed Juma Al Shamisi, Abu Dhabi Ports Group CEO, said: “Reaching these key safety in proximity to Khalifa Industrial Zone Abu Dhabi (KIZAD), the region’s largest industrial zone, and our interconnected multimodal transportation links, will assist us in creating new opportunities to meet demand and maximise efficiency across the entire supply chain. “Our commitment to Khalifa Port’s ongoing enhancement allows Abu Dhabi to not only increase trade flows to the region, but positions our port as a highly significant hub within China’s Belt and Road Initiative (BRI).” and operational milestones is a tremendous achievement for CSP Abu Dhabi Terminal, and demonstrates our commitment to helping position Abu Dhabi as one of the world’s premier logistics and trade hubs. “Our long-term strategic partnership with COSCO SHIPPING Ports is bearing fruit thanks to the directives and support of our leadership, and these impressive results demonstrate Abu Dhabi’s strength in enabling international trade by handling and moving high- volumes of cargo efficiently and safely.” “Abu Dhabi Ports has heavily invested in developing world-class technology and infrastructure to ensure our maritime and logistics assets act a conduit for attracting foreign direct investment and enhancing commerce.” Naser Al Busaeedi, Deputy CEO, CSP Abu Dhabi Terminal, said: “In the long- term, our strong partnership with Abu Dhabi Ports allows us to take advantage of world-class infrastructure, to seize opportunities in new growth markets and put our customers first. “We are confident that our strategic location,
16 | LOGISTICS NEWS ME | MAY 2020 WWW.CBNME.COM REGIONAL NEWS BUNKERING UAE BASED GP GLOBAL EXPANDS EUROPEAN BUNKERING NETWORK GP Global has further strengthened its international bunkering network with the addition of new delivery infrastructure, supplying the port of Hamburg, Germany. Expanding their geographical supply reach in the ‘North Western’ market, GP Global will be supplying Marpol and IMO 2020 compliant Marine Gasoil, all overseen by GP Global’s Rotterdam office. With a global network of bunker trading offices across London, Geneva, Dubai, Mumbai, Singapore, and Houston in The Americas, complemented by representatives in Lagos, Dar el Salaam, Nairobi, Delhi and Shanghai, the expansion into supplying Hamburg compliments GP Global’s current portfolio of supply locations as the group continues to grow. Leading the operation in Hamburg is Peter Beelenkamp, who will be reporting directly Chris Todd, Head of Bunkers, West of Suez. Before joining GP Global in 2019 as Lead – Hamburg Bunkers, Peter headed the European Division of SK Energy focusing on their ARA operations and brings a breadth of experience to the role. GP Global’s Jt. Managing Director, Prerit Goel, said: “As the bunkering landscape continues to shift into new directions, supplying for Hamburg Port is a testament to the success the company has achieved across its business units, in the face of a challenging global economic climate. The Hamburg market has long been on our radar and we are very excited about the added value GP Global will be bringing to what has long been a static market.” Chris Todd, Head of Bunkering, West of the Suez at GP Global, added: “Being a neighbouring port to Rotterdam, the setup of our new Hamburg operation is a great fit for our further expansion into the North Western market, and the world. Our bunkering division continues to go from strength to strength as we continue to add new physical supply ports as well as new offices and talented individuals to portfolio of locations West of Suez.” TOP 5 ONLINE STORIES THIS MONTH Careem introduces grocery delivery service in Dubai 1 Rockwell Automation to name Al Ghandi Electrical & Automation as Authorised Distributor in the UAE 2 Renault Trucks prepares a gradual and safe restart of its plants in France 3 King Fahad Industrial Port at Yanbu Receives Maiden Call by Newly Launched JEDDEX service from CMA CGM 4 DEWA applies precautionary measures to continue delivering services during COVID-19 5 FIND US ON YOUTUBE Subscribe to our YouTube channel to see things like site visits, interviews and much more
LOGISTICS NEWS ME | MAY 2020 | 17 MAY 2020 RETAIL MAJID AL FUTTAIM AND MINISTRY OF CLIMATE CHANGE AND ENVIRONMENT ANNOUNCE PLAN TO BOOST SUPPLY OF FRESH PRODUCE Majid Al Futtaim, the leading shopping mall, communities, retail and leisure pioneer across the Middle East, Africa and Asia, in collaboration with the UAE Ministry of Climate Change and Environment (MOCCAE), has announced a new initiative to boost the availability of locally grown produce across Carrefour stores in the UAE. The programme will open new distribution channels for more than 6,000 small and medium-sized local farmers and ensure a sustainable supply of fresh fruit and vegetables across the country. This collaboration is an example of the public and private sector working Al Futtaim Holding said: “For many years, we have partnered with the Ministry of Climate Change and Environment to support the UAE’s Sustainability agenda and maintain our position as a leader in sustainable business practices. This includes continued support of critical sectors like the agri- food industry, particularly at a time when food security and access to essential products is more important than ever. Our latest partnership reinforces our commitment to substantially and sustainably contribute to the country’s food security efforts and increase the supply of fresh and nutritious produce in our stores.” together effectively and with uttermost agility to turn a challenging situation into an opportunity. It is made possible by a Memorandum of Understanding that was signed by both parties in 2018 and has since resulted in many important partnerships. This latest initiative will enable local farmers to sell their fresh produce at competitive prices through a large network of distribution and collection centres, while also benefitting from Carrefour’s sorting and packing services. Speaking on the initiative, His Excellency Dr Thani bin Ahmed Al Zeyoudi, Minister of Climate Change and Environment, said: “MOCCAE and Majid Al Futtaim share a firm dedication to advancing sustainable development, and creating efficient distribution channels for local agricultural produce is an integral part of achieving this objective. In line with the new strategic food security law, issued by the UAE President His Highness Sheikh Khalifa bin Zayed Al Nahyan on 30 March 2020, Carrefour’s direct purchase scheme will go a long way in providing a sufficient supply of essential food commodities in the UAE – a key priority in view of the current situation.” Alain Bejjani, Chief Executive Officer at Majid
18 | LOGISTICS NEWS ME | MAY 2020 WWW.CBNME.COM ANALYSIS New Analysis from Dubai Chamber highlights the country’s connectivity as being integral to helping the world navigate the current crisis UAE – CONNECTING THE WORLD
LOGISTICS NEWS ME | MAY 2020 | 19 (LSCI) – a widely used barometer of countries’ accessibility to global trade – it revealed that the UAE has the highest connectivity to global maritime trade networks among all countries in the Middle East and neighbouring Africa, West Asia and South Asia regions - a strong in- dication of its global trade hub status. The Analysis pointed out that the UAE’s regional markets of Kuwait, Oman, Pakistan, Sudan and Tanzania have their highest bilat- eral connectivity with the UAE higher or equal to China – the world’s largest economy by pur- chasing power parity. While for markets such as Kenya and KSA, the UAE enjoys the sec- ond highest bilateral connectivity after China. It is worth noting that the network of marine trade routes owned by the Emirates reflects the existence of immense opportunity for easy and flexible movement of goods, thus saving cost and time, which makes the UAE’s logistics sector a key player in the global efforts to fight Covid-19. UAE’S LOGISTICS SECTOR PLAYS A KEY ROLE IN GLOBAL EFFORTS TO OVERCOME COVID-19 PANDEMIC The UAE’s status as a vital global logistics hub is helping the global community effectively navigate the coronavirus pandemic – according to a new Analysis by Dubai Chamber of Com- merce and Industry (Dubai Chamber). Titled ‘UAE Logistics Sector – Connectiv- ity and Resilience,’ the Analysis highlights the country’s busy air cargo routes, high maritime freight connectivity, well-established warehous- ing network and strong logistical system as key elements that are enabling communities to weather the restrictions being created by the current situation. Focusing on air cargo, the Dubai Cham- ber Analysis found that Middle Eastern cargo carriers, led by Emirates Airline, are show- ing resilience to early disruptions caused by the COVID-19 crisis, with Middle East-North America, Africa-Middle East, Europe-Middle East, and Middle East-Asia routes all expe- riencing annual year on year (y-o-y) growth between 2.5% to 9% during February 2020 compared to 2019. This bucked the trend that saw global carriers’ international activity drop by -0.9% y-o-y, with around half of their global cargo routes experiencing weakness. The Analysis also highlighted the latest data from the International Air Transport Asso- ciation (IATA) that showed that international cargo tonne kilometres (CTKs) - a measure of air cargo traffic - Analysised by carriers in the Middle East grew 4.3% y-o-y in February 2020 as they expanded their cargo capacity by 6% y- o-y. This was despite having to reduce - as did all international carriers - their passenger ca- pacity due to the COVID-19 pandemic. From a maritime perspective, the Dubai Chamber Analysis found that the UAE’s con- nectivity has been a key factor in ensuring that vital supplies reach global markets. Highlight- ing the Liner Shipping Connectivity Index Zachary Cefaratti, CEO Dalma Capital Management
20 | LOGISTICS NEWS ME | MAY 2020 WWW.CBNME.COM CARGO CARGO ON THE MOVE A world increasingly in lockdown, yet air cargo keeps moving: WorldACD Market Data No one could have foreseen what the world is going through as a result of the Covid-19 pan- demic. Trying to compare our days with any earlier period in history seems senseless, as so many parameters have changed drastically, whether you take the Spanish flu, the great depression, the globalization of the past dec- ades or the financial crisis of 2008/9 as your point of reference. And yet - however terrible the daily news - you may want to know what’s happening in your field of economic activity, if only as some kind of background to the mo- mentous things happening to us or around us. You are accustomed to our monthly informa- tion built with the full worldwide data of well over 70 airlines. Today, subscribers to the Worl- dACD data service received the March-data for over 1,500 individual markets: the word roller- coaster does not even begin to describe what the air cargo world has experienced in March… We look at developments from three differ- ent perspectives: a year-over-year (YoY) com- parison, the month-over-month (MoM) changes between February and March, and the dramatic events within the month of March itself. MARCH 2020 VS MARCH 2019 (YOY) After the 2.7% drop we reported for the months of January/February combined, March recorded a decrease in chargeable weight of 17.7%, in spite of the first week of March being the best week of the year so far. Asia Pacific (-12%) and the Americas (-17%) fell least, whilst Africa and MESA were hardest hit (-28% and -32% respectively). A small increase in freighter capacity (+2%) was more than offset by the sudden lack of cargo capacity in passenger aircraft (-39%), causing yields to go up in most regions, most visibly for cargo originating in Asia Pacific. In that region, unit prices in USD increased YoY by more than 1/3 (from China by even
LOGISTICS NEWS ME | MAY 2020 | 21 MAY 2020 “Between February and March, freighter capacity increased by 29%, whilst cargo capacity on passenger aircraft dropped by the same percentage” Top-10 slightly increased their share as they laid their hands on scarce capacity against a somewhat higher increase of charges than the increase recorded for Tier-2. THE MONTH OF MARCH, A MONTH LIKE NO OTHER IN AVIATION HISTORY Where to start when recording the events with- in the month of March, showing many com- pletely different faces… Freight capacity fell by 28% in two weeks’ time. Cargo carried on freighters was 3.5% higher in the second half (H2) than in the first (H1), but freight carried on passenger aircraft was halved, causing the total freight carried to drop by 22% from H1 to H2. Car- go carried from Africa and MESA fell by more than 30% in two weeks’ time, Asia Pa- cific’s by less than 10%. Comparing the last week of March with the first, a mixed picture emerges. Cargo carried in the last week was 31% lower worldwide than in the first week. Airlines from the Middle East were hardest hit with a volume decrease of 49%. Cargo capacity on passenger aircraft vir- tually disappeared in the MESA region (-92%). Asia Pacific airlines dropped least (-10%). Air- lines from North America lost 53% in Europe- an markets, but airlines from Europe only 28% in North American markets. The volume of high-tech transported in the last week of March, was higher than in the first week. Fish & Seafood, Fruits & Vegetables and Flowers were hardest hit, with drops between the first and the last week of 41%, 53% and 58% respectively. 2/3, getting up to an average of 3.58 USD/ kg). In terms of revenues (in USD), the mar- ket from China to destinations in Asia Pacif- ic stood out with an increase of 91%. MARCH VS FEBRUARY (MOM) Between February and March, freighter ca- pacity increased by 29%, whilst cargo ca- pacity on passenger aircraft dropped by the same percentage. Changes in cargo carried were most conspicuous when looking at the results per type of airline. Airlines fly- ing freighters only, carried 42% more cargo than in February, whilst airlines operating only passenger aircraft lost 22%. The larger group of airlines operating both passenger aircraft and freighters, did not suffer a mate- rial change in volume. Not surprisingly, the cargo-only airlines improved their market share considerably, whilst recording a whop- ping 81% growth in USD-revenues. Forwarders from the World’s Top-20 had different experiences: the Top-10 as a group in- creased volumes by 3%, though with individual performance ranging between -9% and +16%. Individual performances in Tier-2 (the num- bers 11-20 lost 2% as a group) were much more divergent, ranging from -40% to +117 %. The
22 | LOGISTICS NEWS ME | MAY 2020 WWW.CBNME.COM DIGITALISATION
LOGISTICS NEWS ME | MAY 2020 | 23 MAY 2020 ONE CLICK AWAY tion, nGage, is a game changer for the logistics industry. “nGage last-mile delivery is a software-as-a- service which our clients are provided with to manage their fleet and track package deliveries in real time, optimize routes, get all the neces- sary information about fleet activity and much more. It gathers all last-mile delivery elements information into one comprehensive and user- friendly software. Clients no longer need to take orders and assign drivers for deliveries manually. Orders come through the software and riders/drivers are immediately assigned to pick them up, and are given the best route to take with the help of the GPS,” said Zeid Abu Ennab – Senior Director- Brandware & Saas Apart from nGage, One Click is planning to introduce a new ground breaking technology, Brandware, which can dynamically and digi- tally updates the look and feel of your fleet and delivery specialists. The patented technology includes uniforms with digital panels and de- livery boxes and backpacks with digital panels. “Our goal was never to simply create a soft- ware and sell to our clients, stopping there. It was creating an entire last-mile delivery ecosys- tem. Our software provides us with particular data, which is later utilized for the creation of another solution, useful at a later stage – in a domino-like effect.” With COVID-19 changing how every in- dustry operates, One Click’s flexibility allows them to adapt and evolve to provide the right solutions for their clients. “Our flexibility is our ‘secondary USP’. The blend between our technology and the brains behind the technol- ogy. We are proud our management’s agile ap- proach to challenges. Our team does not turn away any client no matter what the size of their business is. We custom make solutions for all clients, create new services and find ways to solve their challenges,” concluded Hassan. The spread of the coronavirus and sweeping policy measures taken by various governments have led many industries into unchartered ter- ritories. We’ve seen tourism, airlines, electronics and many other industries hit by the COVID-19 crisis, but there’s been an unprecedented growth spike in the online food and delivery industry. As consumers globally have been either mandat- ed to stay home or have chosen to do so, they have resorted to ordering food, groceries, shop- ping and other essential needs online. Due to the surge of online shopping many delivery services and solutions companies are thriving during this pandemic. According to KPMG Lower Gulf’s latest report, ‘Navigat- ing the pandemic,’ has revealed that among the strong performing sectors, online retail, particularly of groceries, has witnessed signifi- cant growth. Grocery retailers witnessed a 20% to 40% increase in sales during the first half of March, compared to the same period last year. Online marketplaces also saw surging demand, particularly for laptops/tablets and gym equip- ment (due to the closure of gyms and fitness centers). One Click Delivery Services, one of the fast- est growing regional technology companies specializing in Last Mile– is currently experi- encing a sharp spike in demand for fleet and fleet software management in order to respond to their client’s high demand of food and gro- ceries orders. “The verticals operating more than others are the delivering necessities – such as grocery stores and pharmacies. Restaurants are also operating well as customers still want to enjoy their favorite meals even when the dine-in op- tion isn’t available (with the exception of a few restaurants),” said Hassan Hallas, CEO and co-founder of One Click Delivery Services. “With restaurants and retail stores changing their business model to deliveries, we are fac- ing a surge in delivery demand which has led us to increase our fleet capacity by 14% in un- der one month,” Hassan added. With health and safety being a concern to all customers, all delivery services have intro- duced measures to deliver goods safely. Hassan explains how One Click have taken extra meas- ures to ensure that their last mile delivery goes smoothly: “We have a great responsibility of protecting all customers and riders, so we have implemented strict hygiene protocols that all riders must abide by. It starts at the warehouse – where all the disinfection begins. This of course, is additional time and work from our side – but this is the way things must be done. Riders then must have their vehicles deep clean and continuously sanitize their hands and change their masks and gloves multiple times. We are working as hard as we can to be as hy- gienic, fast and efficient as possible to keep our and everyone else’s business going.” “To keep our clients satisfied, we are keep- ing their customers happy by executing deliver- ies rapidly and safely. Our strong technology is enabling them to manage fleet easily and ef- ficiently especially in such times of high deliv- ery,” Hassan elaborated. One Click Delivery Services aims to develop solutions that cover the entire Last Mile De- livery phase with the end goal of becoming a one-stop shop for all last-mile delivery phases, ultimately changing the last-mile delivery land- scape through the digitization. “Every one of our solutions facilitates a specific element of the last-mile delivery, from fleet management and data collection to client acquisition and more. We aim at becoming a one-stop shop for all last-mile delivery phases, ultimately changing the last-mile delivery land- scape through the digitization of every angle.” In order to be unique and stand out from the rest of the competition One Click’s SaaS solu- Driven By Demand: Dubai-Based Logistics Tech Startup One Click Delivery Services Sees Surge In Growth. Hassan Hallas, CEO & Co-Founder tells us why. Also flag the page as Interview
COVER STORY 24 | LOGISTICS NEWS ME | MARCH 2020 WWW.CBNME.COM Logistics News ME looks into how ports and terminals are operating in 2020, why their locations are strategic for their partners, and the key role that technology and automation plays.
LOGISTICS NEWS ME | MAY 2020 | 25 MAY 2020 OVERALL PERFORMANCE RAK Ports performed really well in 2019, we achieved a financial result that was simi- lar to the very good result of 2018. Saqr Port handled a record 56.4 million tons of cargo. Saqr Port’s three new deep-water (-18 me- tre water-depth) berths are now fully opera- tional, allowing our customers to send bigger vessels than before. Our customer satisfac- tion was again on a high level. We were off to a good start in 2020 but we will obviously be impacted by the con- sequences of Covid-19. Fortunately we had already initiated numerous efficiency drives and due to somewhat slower vol- umes we have been able to expedite those measures so we expect to come out even more robust. We have also started our land-reclamation project to attract new activities to Saqr Port / Free Zone. So vol- umes will probably be less than in 2019 but we still expect a strong result. IDEAL PARTNER RAK Ports’ core values of professionalism, flexibility, innovation and transparency are central in delivering best practice international management, operational excellence and a wide range of top-class services to our custom- ers and stakeholders. Our management team and operational staff combine decades of relevant international ex- perience in the maritime, terminal and port in- dustry with an easily accessible, hands-on and responsive customer centric approach. TECHNOLOGY As part of our efficiency drive, we are putting a lot of focus on the digitilisation of our process- es and operations by implementing our Port Operating/Port Community System during the course of 2020. Amongst other things, it includes state-of-the-art “Rubus” technology to optimize the use of our mobile harbour cranes. We are also pursuing options to make our op- eration more environmentally friendly. PORT AUTOMATION Port Automation is essential to improve one’s efficiency. TOS and Port Community Systems have traditionally been focused on containers, and to a certain extent also on large scale – single commodity – bulk operations. We also see good deployment options however for automation in our more complex dry bulk operation. Port Automation (hardware and processes) is not only about systems however, it is about sharing data along the supply chain. One should use Port Automation as a platform to create value with that data with an improved efficiency (for all stakeholders in the chain) as the objective. We are working hand in hand with our customers and other stakeholders to achieve exactly that with the implementa- tion of our Terminal/Port Operating and Port Community systems. RAK PORTS FACILITIES’ AT RAK PORTS • 4 diversified / multi-faceted Ports • 10 bulk handling berths • upto 18 metres water depth • 22 modern mobile harbour cranes – delivering 5,300 tons per hour loading rate • 100 million ton bulk handling capacity • a dedicated container terminal (815 metres in quay length / 3 ship to shore cranes) • 9 million square metres of land available for development • 800,000 square metres of covered warehouse space • 14 dedicated modern vessels in the marine services fleet • 3 anchorage areas (30 to 60 metres water-depth) capable of accommodating 50 vessels at any given time
26 | LOGISTICS NEWS ME | MAY 2020 WWW.CBNME.COM COVER STORY OVERALL PERFORMANCE 2019 was one of the most exciting years in the history of the port. The year saw an in- credible journey of recovery from the devas- tating Cyclone Mekunu in 2018 and handling of an all-time record in both the General car- go and the Container Terminal of the port. The General cargo terminal handled 16.27 Million MT and the container terminal han- dled 4.1 Million TEUs in the year. 2020 started off well, however now with the COVID-19 situation globally, things are shaping out in a different way than expected. We are following the guidelines and direc- tives of the Government of Oman and have a business continuity plan in place to mitigate the risk to our employees and stakeholders. The situation continues to be extremely flu- id and we are keeping a close watch on the evolving developments and processes are be- ing aligned to mitigate impact. IDEAL PARTNER Port of Salalah offers customers using the port a distinct competitive edge in the form of improved supply-chain efficiency and cost advantages through its strategic geographical position as well as the state of the art infra- structure. Strategically located directly adjacent to the main East-West Shipping Lane, Salalah provides the region’s fastest access point to the wider Middle East, Indian Subcontinent and East Africa. The port is also situated well-away from the Straits of Hormuz – re- ducing carrier insurance premiums and over- all freight costs. Additional advantages include the adja- cent Salalah Free Zone, which offers 100% foreign ownership, 0% import and re-export duties and 0% personal income tax along- side sector-specific zones and clusters, which address the unique infrastructure needs of individual industries alongside offering inte- grated, bespoke logistics and supply chain so- lutions across the value chain. TECHNOLOGY In 2018, Port of Salalah upgraded its Termi- nal Operating System which forms the back- bone of its container terminal operations. Also, all equipment purchased by the port, have the advanced features in them which not only allow for better synergy with the terminal operating system but also reduce the overall life cycle cost of the equipment and are environmentally friendly in terms of lower emissions and lower fuel consumption. Towards the end of 2019, as part of its digital initiative to enhance customer experi- ence, Port of Salalah, joined TradeLens, the blockchain-enabled digital shipping platform. We are also working on digital payment and enhancements in the customer interface PORT OF SALALAH
LOGISTICS NEWS ME | MAY 2020 | 27 MAY 2020 so as to provide a real time update on opera- tions to the customers. PORT AUTOMATION While the need for digitalization is not dis- puted, the scope and the extent to which dig- italization initiatives succeed is dependent on a number of factors and some of these fac- tors may be beyond the control of the entity. Overall, the benefits of digitalization can be maximized only if the entire ecosystem in- cluding the key stakeholders are connected digitally or have aligned processes. As far as automation is concerned, there has to be a realistic assessment of the finan- cial and non-financial benefits and compared to the financial and non-financial cost of un- dertaking such an exercise. In a location like Salalah, customers re- quire us to provide speed, efficiency, reli- ability and predictability with the inherent ability to handle uncertainty combined with low cost which has made high level of automation unviable till date. However, with the cost of automation decreasing each passing year and the technology re- lated to automation becoming more stable, we will see more terminals evaluate auto- mation more frequently. Port of Salalah is evaluating on a number of initiatives that will support improving overall customer experience. Many of our assets are being digitalized, with sensors to maximize information flow and improve performance. Apart from using technology to drive performance and make the terminal a safer place, our approach is to focus on customer facing transactions which will not only enable ease of doing business but also helps reduce trade barriers. This, in turn, will stimulate business growth in the local and re- gional economy. Sunil Joseph, Chief Commercial Officer of Port of Salalah
28 | LOGISTICS NEWS ME | MAY 2020 WWW.CBNME.COM COVER STORY OVERALL PERFORMANCE Overall, 2019 was a great year for Gulftain- er’s portfolio and we achieved a number of milestones. Our gateway flagship, Sharjah Container Terminal (SCT) welcomed several direct calls, demonstrating its strategic posi- tion as a prominent gateway port for the re- gion. We also upgraded the terminal services, which included the expansion of SCT’s full container storage yard by over 17 per cent and the ability to operate bigger vessels. 2019 also saw the completion of the Saja’a Access Road in Sharjah - another key mile- stone for us. The newly-constructed through- way, built in collaboration with the Roads and Transport Authority (RTA), connects the Saja’a Industrial Investment Park (SIIP), Gulftainer’s first-ever leasehold initiative, via the Emirates Road (E611) to the three major seaports in Sharjah – Port Khalid, Hamriyah Port and Khorfakkan Port – as well as Shar- jah’s International Airport and the UAE’s arte- rial road network. Its strategic location and un- paralleled capabilities are poised to enhance the global competitiveness of the Emirate. In 2020, we will continue to enhance the port’s capabilities to meet the evolving needs and expectations of our customers and we look forward to welcoming new customers and forging additional fruitful partnerships. IDEAL PARTNER SCT’s strategic location as a prominent gateway port for the region, coupled with its modern machinery provides the most ef- ficient turnaround possible for vessels and also offers tailor-made solutions for port us- ers. The terminal’s Electronic Data Exchange (EDI) facilities offer optimisation of op- erations and ensures quicker and secure ex- SHARJAH CONTAINER TERMINAL Peter Richards, Group CEO, Gulftainer (Sharjah Container Terminal)
LOGISTICS NEWS ME | MAY 2020 | 29 MAY 2020 change of sea shipping paperwork. Overall, in addition to its unique location, the services of the terminal offer efficiency, optimisation of processes and reduced op- erational costs that make us the ideal partner for our customers. The port connects UAE shippers to the worldwide shipping network through both direct and feeder container shipping services. TECHNOLOGY The terminal, which boasts a state-of-the-art port management system, four berths, five cranes, fully computerised warehousing and distribution centre, vast yard and terminal space, offers excellent productivity levels and online services for customs facilitation. SCT also has plenty of space and inland access New technologies include Artificial Intel- ligence (AI), Blockchain, and “Internet of Things” (IoT) to help digitise and automate processes, offering customers pricing benefits and faster services. This is what we envisage the future of ports will look like – smarter, faster, greener, bigger and automated. Not only will these ports generate value for all stakeholders - port operators, suppli- ers, and customers – but they will offer new opportunities for employees to upskill and reskill. Eventually, automated carbon-neutral ports will become increasingly common, and conventional equipment within ports will be replaced. It will also empower and aid staff to perform more complex and strategic tasks as lengthy and mundane tasks will be re- placed by tech-driven solutions. to its own inland depot for warehousing and cargo handling. This terminal is supported by Momentum - our complete third-party logistics provider (3PL), which offers clients a comprehensive range of integrated logistics services, includ- ing transportation, freight forwarding, ware- housing, logistics cities, container repair ser- vices and contract logistic. PORT AUTOMATION The increase in sea traffic and a continued momentum in trade has led to a significant demand for automation in container ter- minals processes. Automation of ports will bring a large number of benefits including a new level of consistency when handling cargo at reduced costs and carbon emissions.
30 | LOGISTICS NEWS ME | MAY 2020 WWW.CBNME.COM DIGITAL
LOGISTICS NEWS ME | MAY 2020 | 31 MAY 2020 DIGITISING THE SUPPLY CHAIN they are linked to solutions or portals that are vendor agnostic like Pagero’s platform, these can convert manual documents into verifiable digital documents that can then be processed for better efficiency. This leads into the last major reason for dig- itisation: data accuracy. Digitisation allows for traceability for documents and the process. The management also gets detailed, accurate informa- tion at line level that allows them to generate ana- lytics like cash flow, indication of fraud, buying and procurement trends, contracts and discounts when the flow of data is digital and not manual. Working with vendor agnostic platforms like Pagero, the supply chain ecosystem can create traceability, data accuracy and transparency. These platforms also create interoperability be- tween other networks used the buyers and sell- ers anywhere in the world, making it future- proof. The opportunity to upgrade and expand the connections to the network makes it way more scalable and easier and cheaper to main- tain than traditional EDI. Digitisation has been a buzzword for some time now but, given the current business scenario globally, it is being seen in a new light. The cur- rent pandemic has forced businesses to manage their processes better and that includes its sup- ply chains. Digitising business processes is important for three main reasons: compliance, efficiency and data accuracy. Driven not just by compliance and regulations by government departments like the tax authorities, customs etc but also in terms of compliance with contractual obligations, proper digitisation of these networks means that not only does the system provide all the neces- sary basic information about the company but also transparency and verification of the busi- ness process from estimates to purchase orders to processing invoices providing real time infor- mation for managing businesses. The ideal scenario would like to see that buyers and sellers are connected to open global networks where they can exchange their docu- ments in any format that can be generated by whatever ERP or Workflow solutions each com- pany uses and that this network is smart enough to convert them in a way that the receiver can read and interpret it accurately. Proper digitiza- tion in this form results in operational efficiency. It allows for verified and detailed documents to be distributed to the right people for informed decisions. For buyers, for critical industries par- ticularly, it means a better view of suppliers, deliveries, and also management of the inven- tory and the buying process. For the sellers, this means a more efficient use of documentation and processing of estimates, orders, deliveries and payments. However, we are not working in a completely digital world. We still have manual inputs to unsophisticated systems that cannot connect to a portal or that businesses (some of the small- er ones) can only generate PDF versions of scanned, manually raised documents. Manual processes like these are labour intensive and the chance for errors is quite high. Add to this, these not always verifiable or traceable. However, if Luis Ortega, Managing Director for Middle East, Africa, Asia at Pagero, tells us how businesses demand global reach to their buyers and sellers in a full digital fashion regardless of the back office systems or documents’ formats and providing support with local compliance and flexible business requirements.
32 | LOGISTICS NEWS ME | MAY 2020 WWW.CBNME.COM GRADUAL RESTART Renault Trucks prepares a gradual and safe restart of its plants in france TRUCKS Disinfection of machinery, workstations and work tools, the wearing of masks, gloves and overalls, social distancing rules, organised movement in shared areas... Pro- duction has been at a standstill since 18 March, but Renault Trucks is now prepar- ing for a slow, gradual and safe resumption of activity in its production sites, constant- ly following the same baseline approach, namely to protect the health and safety of its employees. Since the start of the lockdown and de- spite the temporary interruption in produc- tion, Renault Trucks has carried on serving its customers, as far as reasonably possible, by continuing in particular to supply spare parts and repair trucks. These activities are essential to ensure the continuity of vital services to society, especially to transport and deliver basic necessities, medicines and food. However, although some employees have carried on working, production, sales and R&D have come to a halt and the vast ma- jority of employees have been in short term layoff for almost a month. Concerning Renault Trucks in France, an agreement has just been unanimously signed by trade unions to ensure fair com- pensation for these staff members in short term layoff. Applying until July 3, 2020, the agreement erases the disparities between the different categories of employees, resulting from the legal provisions and the Metallurgy collec- tive agreement, protects the lowest wages and aligns compensation for all employees at 92% of their usual net pay thanks to the solidarity of managers, and thanks to an ad- ditional contribution from the company. “This agreement allows all employees to be treated fairly during this unprecedented crisis period. It enables all employees to get close to 100% of their usual remuneration through a vacation buy-back plan, while safeguarding the company’s future,” em- phasises Bruno Blin, president of Renault Trucks. “In addition to the employees’ soli- darity, the company is contributing around 8% of the total payroll.” Renault Trucks is planning to resume its activity. Factories in France will be restart- ed gradually, from April 22, 2020, starting with Lyon-Venissieux Engine Plant. Other Renault Trucks production sites, such as Bourg-en-Bresse and Blainville-sur-Orne assembly plants, should gradually resume
LOGISTICS NEWS ME | MAY 2020 | 33 MAY 2020 their activity in the following weeks. The restart of industrial activity is planned, for all plants, at a very low level. Ramp up will be slow and be spread over several weeks, in line with customer demands, the ability of suppliers to deliver the required provisions, and in synchronization with the other Volvo Group plants. The industrial restart will be conditioned by the implementation of reinforced health protocols adapted to each site, in consulta- tion with the trade unions and employee representatives. Drawn up by the compa- ny’s occupational physicians based on the precise route taken by employees, from the cloakroom to their workstation, they aim to eliminate the risk of coming into contact with the virus. “We will only resume activities if health and safety conditions are exemplary – there will be no compromises. This is why we are envisaging a gradual restart, involving an initial period during which we will be test- ing the health protocols, as well as the sup- ply chain and logistics, before considering a ramp-up” explained Bruno Blin. Measures to be taken in Renault Trucks plants include: • Applying social distancing rules and protective measures, • Widespread use of alternative masks, • Wearing FFP2 masks with goggles or visors and gloves when the one-metre distance cannot be respected, • Keeping doors open (except fire doors) to prevent contact with handles, • Cleaning of workstations, work tools, logistics equipment, changing rooms and canteens, • Organising movement in all common areas, changing rooms, corridors and canteens, extending the opening hours and limiting the number of people pre- sent at any given time, • Introducing a special seating plan in transport shuttles to guarantee space between passengers. For sales and research & development entities, the company will favor home office for em- ployees who will have to resume their activity. In a parallel move, the company’s man- agement is examining requests from its cus- tomers, dealers and bodywork partners and analysing market trends to adjust produc- tion rates for the coming months.
34 | LOGISTICS NEWS ME | MAY 2020 WWW.CBNME.COM WAREHOUSES SMART HUB LOGISTICS Middle East’s first next generation ‘Smart hub’ logistics warehouse launches in Bahrain to serve the GCC Bahrain’s MVC Global – providers of one of the leading supply chain track-and-trace platforms for pharmaceuticals and medical devices – announced a strategic partnership with Cox Logistics Group – a Bahrain-based Logistics provider – to launch a first-of-its- kind “SmartHub” logistics warehouse for pharmaceuticals and food to be headquar- tered in Bahrain and serve the GCC market. At a time when global supply chains are decimated by the ongoing COVID-19 pan- demic, this next generation logistics ware- house will utilise emerging technologies to ensure the speedy and efficient distribution of much-needed foods and medicines across the entire GCC, drastically reducing the time required for paperwork, administration and bureaucracy. It will be the first ‘smart hub’ in the middle east to integrate a track and trace system on a blockchain platform with smart contracts for customs clearances and fee payments. The MVC ‘SmartHub’ platform integrates blockchain with serialised Track & Trace, IoT sensors, and ‘SmartPass’ with smart contracts for compliance and government clearances, as well as Fintech for supply chain finance and cross border payments. The ‘SmartHub’ will combine MVC’s plat- form with advanced AI technologies and will facilitate both Cold and Non-cold stor- age distribution for food, pharmaceuticals and medical supplies in Bahrain and across the GCC. The configuration and deploy- ment of the system are currently underway. Cox Logistics Group joins MVC’s exist- ing strategic partners – value chain platform provider AVC Global and leading track and trace solutions provider rfxcel Corporation. Additional strategic partnerships are being announced soon. The partners are all work- ing together with a view to deploy a net- work of Smart Hubs and Node Operations with ‘SmartPass’ across the entire GCC. Commenting on the new partnership, Shai- kha Dheya bint Ebrahim Al Khalifa’s, MVC Global Chairwoman, said: “Due to the on- going pandemic, the availability, authenticity
LOGISTICS NEWS ME | MAY 2020 | 35 MAY 2020 and safety of pharmaceutical and agricultural food supply chains is a more urgent prior- ity than ever before. We have been building a world-class team in Bahrain with a vision of positioning the Kingdom as a world leader in supply chain strengthening, sustainability and development. I am delighted we have now been joined by the Cox Group.” Radford Cox, President, Cox Logistics, said: “Global Trade Routes and Supply Chain Financing are being rapidly recon- figured to meet today’s new challenges. We see this technology and this project as our chance to touch and change the lives of not just the citizens of the Kingdom of Bah- rain, but people across the entire GCC and beyond. When completed this will be some- thing the Bahrain People will be able to say with pride, this is what Bahrain gave to the World.” Husain Rajab, Chief Investment Officer at the Bahrain Economic Development Board, said, “We are very pleased to see this stra- tegic international partnership in Bahrain to establish a safe and secure supply chain network for pharmaceuticals and food sup- plies. The project aims to build on Bahrain’s world-class digital infrastructure, which would enable the Kingdom to become a ma- jor regional logistics hub. Furthermore, our geo-centric location at the heart of the Mid- dle East, advanced customs policies and reg- ulations, and competitive cost of doing busi- ness are integral components of our logistics value proposition that keeps attracting many international companies to setup regional operations in Bahrain.” Glenn Abood, co-founder & CEO of rfxcel added, “The ‘Smart Hub’ is trans- formational and will protect both the phar- maceutical and food supply chain. rfxcel is honoured and excited to integrate our serialised Track & Trace solution with the ‘Smart Hub.’ Given the global concerns with COVID-19, ‘Smart Hub’ takes on new importance and has redoubled rfxcel’s com- mitment to enabling a safe and efficient supply chain.”
36 | LOGISTICS NEWS ME | MAY 2020 WWW.CBNME.COM MAY 2020 SUPPLIER FOCUS ADVANCED SCAN AND DIAGNOSTICS TOOLS New means to diagnose and repair cars have been shaped by sophisticated design and complex onboard systems Digital transformation, the Internet of Things (IoT), automation and connected cars are all buzzwords within the automo- tive industry, and these evolving trends have brought on a vast number of changes to car manufacturing and components. The after-market industry has also trans- formed through worker upskilling and tech- nological development in response to the sig- nificant number of cars on the road carrying onboard computers, central processing units or lines of code that control the engine, brakes or other critical systems. With the advancement of tech, traditional means of diagnosing and repairing cars have shifted gears dramatically in recent times. “Mechanics used to rely heavily on span- ners, sockets and similar tools when trou- bleshooting and repairing cars,” said Dr. Nima Mehrdadi, Managing Director at Hel- la Gutmann Middle East. “However, with the constant evolution of technology in the automotive industry, cars have become far more sophisticated. “With the introduction of various new electromechanical systems and components to improve vehicle performance and safety – which are usually complex systems containing sensors, solenoids and microprocessors, it has become impossible to verify their performance using traditional tools and methods.” New technology implemented by car manu- facturers has opened the door to advanced scan and diagnostics tools. The information supplied by a car’s computer systems has allowed more accurate diagnoses in auto-repair workshops. “Onboard computers monitor a range of parameters,” explained Mehrdadi. “When some of them are out of acceptable values, the car will warn a driver with a light on the dashboard. A specific four-digit code will also be stored in vehicle memory, containing infor- mation that will quickly and easily pinpoint the source of the problem.” Codes can only be retrieved using an appro- priate scan tool, which can be separated into code readers and diagnostic tools. Both allow access to On-Board Diagnostics II (OBD2) and mandatory powertrain codes, however code readers are not compatible with certain sys- tems. While these tools offer huge advantages to automotive repair and maintenance, work- shops should adopt a calculated approach to buying and installing tools. Diagnostic tools are far more powerful, giv- ing access to powertrain related codes and data, as well as in-depth analysis on systems providing information on temperature, engine speed or load, and the ability to diagnose ad- ditional systems such as ABS, air bags and AC. Diagnostics machines come with a hefty price tag and Mehrdadi believes careful con- sideration must be taken when introducing a new tool, ensuring it matches up to the ser- vices provided. He said: “Price can be a limiting factor, as complex diagnostic tools are usually far more expensive than simple code readers. Balancing the diagnostic equipment expenses and needs depends on the complexity of services you of- fer. While specialised repair workshops need every bit of information regardless of costs, workshops that are focused on quick services can easily get away with simple code readers.” Hella Gutmann is just one of several international exhibitors attending Auto- mechanika Dubai’s Repair & Maintenance segment – many of which will showcase new to market products and solutions for auto-maintenance diagnostics. The largest international trade show for the automotive aftermarket and service industry in the MEA region will take place from 19-21 Oc- tober at Dubai World Trade Centre (DWTC). Dr. Nima Mehrdadi, Managing Director at Hella Gutmann Middle East
38 | LOGISTICS NEWS ME | MAY 2020 WWW.CBNME.COM MAY 2020 EQUIPMENT NEW TRUCKS, SAME YALE PROMISE Yale Europe Materials Handling launches the ground-breaking expansion of its product range with the introduction of four new trucks for low- intensity applications. After researching current market trends, Yale uncovered a demand for ma- terials handling products that are engineered to provide high levels of efficiency and productivity, yet are only used for short periods at a time. Yale has identified the specific challenges that customers with these applications face, and has now introduced new solutions to com- plement its existing product range. In a first for the materials handling company, Yale will now offer equipment designed for intermittent use or low-intensity applications. These additions are ideal for customers fo- cused on applications requiring intermittent use, and yet still demanding a truck that is ca- pable of undertaking high priority tasks. For operations that necessitate a forklift or ware- house truck to move loads, but are not used for many hours per day, the new Yale® trucks of- fer a solution to fulfil customer’s needs. Although these new trucks are designed for low-intensity applications, they stay true to the same Yale philosophy. The high standards of dependability, serviceability, ergonomics, pro- ductivity and low cost of ownership associated with the Yale® brand are all carried through this product range expansion. Iain Friar, Yale Brand Manager, said: “We’re very proud to add four new trucks to our grow- ing range of materials handling equipment. As part of our people, products and productivity concept, we are always talking to our customers about the challenges they face and how we can best meet their requirements. By extending our product offering, we can now provide solutions for a broader range of lower intensity applica- tions at an affordable price to customers.” SIMPLY EFFICIENT TRUCKS The MS15UX and MP20XUX trucks extend the Yale warehouse range, with both offering high performance in confined areas. The MS15UX is a highly controllable and agile pedestrian stacker with lift capability suitable for a range of op- erator heights and experience levels, while the MP20XUX is ideal for productive horizontal transportation and vehicle loading and offloading. Engineered to deliver high productivity in gen- eral purpose applications, the GP20-35UX has an ergonomically designed operator compartment with easy reach controls and a clear 3.5 inch LCD display. The GP20-35UX offers reliable operation and efficient filtration and cooling. It provides easy maintenance thanks to a 70° opening engine cover and quick floor plate removal. No special tools or diagnostic tools are required for servicing which makes this truck ideal for self-servicing. The truck further benefits from high visibility masts and highly responsive steering. The ERP15-35UX is an energy-efficient electric fork lift truck with highly responsive steering, which optimises manoeuvrability for confined spaces. The operator compartment is ergonomically designed to offer all-round vis- ibility and a practical and comfortable working environment for the driver. AC Controllers optimise battery power, which is particularly helpful on ramps and long runs as well as high lift usage. Iain Friar, Yale Brand Manager, said: “The introduction of our new trucks for low-intensi- ty applications further enables every customer to find the right Yale forklift for their precise requirements. At the core of these new trucks is the same Yale philosophy of high standards of dependability, serviceability, ergonomics, productivity and low cost of ownership, which is the essence of our entire range. We are pleased to offer a simply efficient solution to our customers.”
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