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T R A N S P O R T A T I O N ‘Whatever the size of the job, we’re here for you’ I N T E R V I E W The road to successful delivery O P I N I O N Robust & Resilient Analytics CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE MAY 2021 WORLD FREE ZONES ORGANISATION A COLLECTIVE VOICE Offering members a platform to share their voice as well as providing assistance and support to thrive in a challenging environment
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LOGISTICS NEWS ME | MAY 2021 | 3 A COLLECTIVE VOICE 14 GENDER BALANCE WEBINAR PUSHING GENDER BOUNDARIES A recent webinar by APM Terminals on gender balance highlighted how and why more needs to be done to make the industry inclusive for both men and women 16 AI - SUSTAINABLE LOGISTICS AI PAVES PATH TO SUSTAINABLE LOGISTICS Artificial intelligence is slowly but surely making its way into the logistics industry and is making real and quantifiable improvements on sustainability, Jon Fath, CEO at Transmetrics, tells us 24 INNOVATION IN TRANSPORT TECHNOLOGY DRIVES THE WAY FORWARD The rail industry is the backbone of public transport, Thales is introducing innovate solutions to better the experience for passengers and the operators 28 COMMERCIAL VEHICLE ADAPT, EVOLVE AND THRIVE Al Masaood’s Commercial Vehicles & Equipment division reveals how the business is evolving to accommodate customer needs 30 INTERVIEW THE ROAD TO SUCCESSFUL DELIVERY Daniel Caton, General Manager of Suhara Logistics, explains how good road infrastructure makes for seamless delivery of goods 32 TRANSPORTATION ‘WHATEVER THE SIZE OF THE JOB, WE’RE HERE FOR YOU’ Mammoet’s new Group Commercial Officer Darren Adams is making it his mission to serve small and medium- sized businesses 36 OPINION ROBUST & RESILIENT ANALYTICS keep supply chains running’ World Free Zones Organisation is offering members a platform to share their voice as well as providing assistance and support to thrive in a challenging environment 20 IN THIS ISSUE 16 32 DR SAMIR HAMROUNI CHIEF EXECUTIVE OFFICER, WORLD FREE ZONES ORGANISATION
4 | LOGISTICS NEWS ME | MAY 2021 WWW.CBNME.COM DHL Supply Chain - part of Deutsche Post DHL Group - is increasingly relying on intel- ligent, IT-based forecasting and analysis tools to optimise warehousing and processing of online orders. In 2019, the group invested USD300 mn to modernise its warehouses in North America. “Accelerating the implementation of selected technologies such as robotics, augmented reality, robotics process automation, IoT and DHL’s proprietary end-to-end visibility solution – MySupplyChain – is the objective of DHL Supply Chain’s global digitalisation strategy,” a DHL report stated. US-based FedEx Corporation is also seeing the benefits of next-generation innovation. It is making investments in robotics and AI that “could radically alter the logistics landscape, impacting everything from small individual shipments to the movement of fleets of vehi- cles globally”. In February 2019, FedEx unveiled a proto- type of the FedEx SameDay Bot, an autono- mous delivery device designed in response to the rapid growth of eCommerce. FedEx has also been collaborating with Mercedes-Benz Vans since 2018 to help develop and test its intelligent and innovative technology product, Coros, a machine learning and computer vi- sion package tracking solution that brings added efficiency, transparency, and intelli- gence to package delivery operations. In the next few years, we’re going to hear a lot more on this topic as the logistics sector will continue to adopt latest technologies to enhance its offerings. 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 T here has been a gradual rise in the use of artificial intelligence (AI) in the supply chain and logistics sectors. Businesses are realising that to survive and thrive, they need to invest in technology that will help them automate operations. AI, specifically, is enhancing efficiencies in predictive demand, inventory management and network planning. Inside, Jon Fath, CEO of Transmetics, tells us how applying AI in transport optimisa- tion, robotics, drones, and anticipatory shipping is making tangible and quantifiable improvements in the industry. “At present, only 12% of logistics businesses use AI in operations, but this is expected to grow to 60% by 2025.” According to a report by All The Research, AI in the logistics and supply chain market was valued at USD1.7 bn in 2018 and is projected to reach USD12 bn in 2027, grow- ing at a CAGR of 24%. The report also states that major players are investing in AI worldwide. Jochebed Menon Editor, Logistics News Middle East jochebed@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 MANAGING EDITOR Kasun Illankoon kasun@bncpublishing.net EDITOR Jochebed Menon EDITORIAL DESIGN Christian Harb MARKETING EXECUTIVE Aaron Joshua Sinanbam aj@bncpublishing.net PHOTOGRAPHER Alexander Bungas
8 | LOGISTICS NEWS ME | MAY 2021 WWW.CBNME.COM A bu Dhabi Ports’ offshore logis- tics service provider, Offshore Support and Logistics Services Company (OFCO – Offshore International), has announced the start of a collaboration with Mammoet UAE, a subsidiary of the global engineered heavy lifting and transport services com- pany. The two organisations signed a Memorandum of Understanding (MoU). OFCO, will work closely with the heavy lift and transport specialist Mammoet to create an integrated package of on and offshore turnkey transport and installation solutions for projects in the GCC. Captain Maktoum Al Houqani, Chief Corporate Authority Officer and Head of Maritime Cluster, Abu Dhabi Ports, said: “The newly-announced collaboration between Abu Dhabi Ports’ OFCO and Mammoet marks a critical milestone in Abu Dhabi Ports’ ongoing efforts to foster an integrated logistics ecosystem catering to our commercial and industrial customers’ every need. “By combining each organisation’s expertise and resources, we can complement each other’s service offering and explore potential operational and logistical synergies, which would allow us to create an integrated, cost-effective solution for the major project market within the GCC and beyond.” Initially targeting UAE-based projects with future ambitions to venture further into the GCC, OFCO and Mammoet will leverage their respective maritime, engineering, and logistical expertise, together with strategic positioning, infrastructure, and in-house assets, to create a joint value proposition that is both flexible and competitive. This in turn will not only provide customers with a streamlined, flexible, and cost-effective solution for handling their heavy cargo transport needs but will also enable them to partner with a single service provider, rather than having to rely on several subcontractors to meet their supply chain requirements. Commenting on the announcement, Paul van Gelder, CEO Mammoet added: “At Mammoet, we always look for ways to improve the efficiency of projects for our customers. The strategic alliance with OFCO is a testament to that, as our collaboration will reduce the number of interfaces within the logistics chain of projects, enabling the planning and operations to be streamlined, and therefore realising the most efficient and cost-effective approaches. “Mammoet maintains the largest fleet of heavy lifting equipment in the world, and so is well-positioned to scale its service in response to any challenge. We look forward to bringing this enhanced offering to clients in the GCC, as part of this strategic partnership.” Launched earlier this year, OFCO operates under SAFEEN Group, Abu Dhabi Ports’ marine services arm, and is one of the largest cost-efficient providers of onshore and offshore integrated logistics solutions and subsea services in the GCC. Holding extensive experience in marine service solutions and a diversified fleet with experience in offshore logistics and supply chain management, the company’s “one- stop-shop” offering is ideal for meeting the complex logistical requirements of customers within the oil and gas, energy, and offshore markets. OFFSHORE INTERNATIONAL, MAMMOET INK MOU TO OFFER LOGISTICAL SOLUTIONS REGIONAL NEWS LNME
LOGISTICS NEWS ME | MAY 2021 | 9 REGIONAL NEWS H eavy transportation and heavy equipment rental company Al Faris Group purchased two latest genera- tion Mercedes-Benz Arocs SLT trucks, a first in the Middle East and North Africa, from Emirates Motor Company. Hillary Pinto, Managing Director of Al Faris Group, said during the handover ceremony: “We have performed numerous heavy transport operations for abnormally sized objects for more than 25 years and it has always been our priority to provide safe, innovative, and reliable solutions for heavy lifting, heavy transport and energy projects. “When it comes to heavy transportation, the Arocs SLT meets the demands and our high standards. The addition of these two new trucks will add value to the company and we look forward to our long-term partnership with Emirates Motor Com- pany.” The Mercedes-Benz Arocs 4058 AS 6×6 SLT is a particular heavy-duty tractor unit. It is driven by Mercedes-Benz Trucks’ most powerful engine: the six-cylinder in-line OM 473 engine with 15.6l displacement with an output of 578 hp (425 kW), offer- ing torque of 2,800 Nm in Euro 5 emission norm. To take to the road with transport loads of up to 250 tonnes, the truck is equipped with the automated Mercedes PowerShift 3 gearshift system and G 280 transmission with 16 gears and a fluid coupling. Bilal Al Ribi, General Manager Commer- cial Vehicles of Emirates Motor Company, said: “Heavy duty transportation requires very high-tech equipment and uncompro- mising reliability, and this is precisely what the Arocs SLT delivers. We thank Al Faris Group for their confidence in us. We are committed to providing long-term support to Al Faris Group and to contributing to their business growth.” MERCEDES-BENZ DELIVERS NEW-GEN AROCS SLTS TO AL FARIS GROUP
10 | LOGISTICS NEWS ME | MAY 2021 WWW.CBNME.COM T echnology-driven delivery company iMile has stepped into Egypt with operations in Cairo and Suez. Dubai-based, iMile specialises in delivering goods from eCommerce sellers in China to customers in the MENA region. iMile’s recent expansion into Egypt is part of its commitment to continue supporting ef- ficient cross-border eCommerce across the region. The company has partnered with two eCommerce companies Egypt so far and is working with several SMEs for door- to-door delivery. iMile is investing in a local team in Egypt, hiring exceptional local tal- ent to ensure the best team is in place. With the rise of online shopping in Egypt, local companies are focused on develop- ing strategies that enhance digital trade. The growth of Egypt’s eCommerce industry has been spurred by its rising population, its increasingly affluent middle class and most notably, by consumers’ readiness to trial new retail options, a phenomenon ac- celerated by the COVID-19 crisis. These factors enable iMile to help improve overall delivery experience for eCommerce customers by providing logis- tics and customer services for companies in Egypt. iMile is confident that Egypt will remain a key market for the business going forward. iMile CEO, Rita Huang, said: “We have solid plans for what we want to achieve in 2021 and our launch into Egypt plays a big part into this. We aim to continue growing at rapid pace into next year and will invest in our technology and our people to en- sure we are ahead of the curve.” IMILE FORAYS INTO EGYPT, PARTNERS WITH TWO ECOMMERCE FIRMS REGIONAL NEWS LNME
LOGISTICS NEWS ME | MAY 2021 | 11 REGIONAL NEWS A l-Futtaim Toyota Material Han- dling, an Al-Futtaim Automotive company and distributor of Toyota Material Handling equip- ment in the UAE, has signed a long-term supply and maintenance contract for 32 Toyota electric forklifts to be delivered to first-time customer DHL. DHL has already received 26 light-duty electric forklifts and the remaining units will be delivered before the end of this year. The forklifts ranging from two- to three-tonnes are deployed across DHL’s warehouses located in the UAE. They are equipped with Toyota’s pat- ented System of Active Stability (SAS). SAS works by continually monitoring the forklift’s operations and automatically tak- ing protective action when needed. The system takes over 3,000 readings per second to detect unsafe operating conditions and if a safety hazard is de- tected, the SAS activates one of its two main features – Active Control Rear Sta- bilizer System and Active Mast Function Control System, that improve lateral and longitudinal stability of the forklift. “We are extremely delighted that DHL has chosen the Toyota electric forklifts for their material handling needs. This deal further reaffirms our leading position in the material handling industry in the UAE. “These electric forklifts provide substan- tial fuel savings and reduced carbon foot- print also contributes to the UAE’s Vision 2021 to create and maintain a sustainable environment,” said, Ramez Hamdan, Managing Director – Industrial Equipment (FAMCO, HINO, Toyota Material Han- dling), Al-Futtaim Automotive. He added: “Toyota forklifts are known for their solid build quality, reliability and durability that is second to none. Combine this with our strong after-sales service support, we are confident we can fully meet and exceed the expectations of our customers.” DHL ORDERS ELECTRIC FORKLIFTS FROM AL-FUTTAIM TOYOTA MATERIAL HANDLING LOGISTICS NEWS ME | MAY 2021 | 11
12 | LOGISTICS NEWS ME | MAY 2021 WWW.CBNME.COM D ubai CommerCity (DCC), the first dedicated eCommerce free zone in the Middle East, North Africa, and South Asia (MENASA) regions, has announced the launch of 470,000 sqft of new facilities as part of its first stage in line with its planned schedule. Dubai CommerCity is situated in the Umm Ramool area in Dubai, and is a Dhs3.2billion, 2.1 million sqft project. The launch of the new phase includes a built-up area of over 320,000 sqft of offices spaces in the Business Cluster. It also includes 145,000 sqft eCommerce logistics units and multi-client warehouses in the Logistics Cluster, which will be man- aged and operated by Hellmann World- wide Logistics and DHL. Given its strategic location and the increased demand for its facilities and services, the new free zone managed to lease more than 51% of the logistics warehouses to companies launching their operations in different sectors, ranging from eCommerce, logistics and informa- tion technology to fashion, jewellery and electronics. H.H. Sheikh Ahmed Bin Saeed Al Mak- toum, Chairman of the Dubai Airport Freezone Authority (DAFZA), emphasised how the eCommerce industry has proven to be a key enabler of growth for compa- nies and a new module adopted by many businesses to ensure business continuity because of the increased demand overall. He added that the acceleration of digital transformation within supply chains and trade because of the COVID-19 pan- demic, has spurred companies to ensure continued operations which are picking up with great optimism in 2021. “The eCommerce sector is key as its value is expected to reach USD148.5 bil- lion by 2022 in the Middle East, Africa and South Asia regions,” he said. “The GCC region is the fastest growing in the eCommerce sector, and the UAE comes in second place as it is expected to grow 38.3% Compound Annual Growth Rate (CAGR). “The UAE is also ranked the fifth larg- est B2C products eCommerce market in sales within the Middle East, Africa and South Asia regions valued at USD4 billion. The UAE companies in eCommerce ac- count for 6% of the list of the 100 largest companies in the sector within the Middle East, Africa and South Asia region.” The launch of the facility is supported by the strategic partnerships signed by Dubai CommerCity and aims to sup- port businesses to run effectively and seamlessly. The eCommerce free zone has signed agreements with Hellmann Worldwide and DHL Express that complement the efforts to grow and enhance the portfolio of services that Dubai CommerCity provides. As part of the partnerships, Hellmann Worldwide will manage and operate a shared, multi-client warehouse within the logistics cluster of the free zone and clients will have access to last mile delivery services through DHL Express. Dubai CommerCity’s customers will also utilise unique storage options and pay-as-you-go payment model which are highly cost efficient and allow flex- ibility to scale their operations in line with demand. The strategic partner- ships will allow for fast eCommerce fulfilment across the region and will provide a suitable and stable ground- work from where customers can grow businesses and enter new markets. Hellmann will also provide end-to-end warehousing including services like order management systems and streamlined customs clearance processes. As part of end-to-end logistics services, Hellmann will also offer last mile delivery services, through its last mile partner DHL Ex- press, from the warehouse directly to the consumer. Dubai CommerCity has signed part- nership agreements with Magento Com- merce, a leading eCommerce software provider and Redbox Digital, a global digital consultancy and platinum Ma- gento implementation partner. Focused on offering ‘eCommerce-as- a-Service’, the collaboration will provide Dubai CommerCity customers with tailored access to e-commerce solutions and services that will enhance digital experiences and brand growth. eCommerce needs vary from one company to another, as such, customers will be provided with start-up, B2B, B2C and cross-industry solutions that have been exclusively designed for Dubai CommerCity to accelerate e-commerce adoption times. DUBAI COMMERCITY COMMENCES PHASE ONE OF OPERATIONS WITH LAUNCH OF NEW FACILITIES REGIONAL NEWS LNME
LOGISTICS NEWS ME | MAY 2021 | 13 ‘eCommerce-as-a-Service’ offerings include special rates on key Magento software, pre-integration with payment gateways, third party logistics systems, marketing affiliates and analytics tools. A wide range of project services including consultancy, discovery and requirements building, testing major and minor custom- izations will also be provided by Redbox. The free zone provides advanced opportunities for global and regional manufacturers, as well as distributors and global e-retailers while offering a vast ar- ray of tax and investment incentives. Divided into three main clusters – busi- ness, logistics and social, Dubai Com- merCity seeks to encourage customers to adopt an active approach while doing business, meet the needs of logistics ser- vices providers and customers and offer vibrant facilities that exceed the expecta- tions of e-commerce companies looking to establish regional headquarters in Dubai. His Excellency Dr. Mohammed Al Zaroo- ni, Director General of DAFZA said: “The launch of the new Dubai CommerCity facilities comes in line within the planned schedule. Despite the global circum- stances and the challenges posed by the COVID-19 pandemic, we have witnessed an urgent need to build a world-class eCommerce platform. “It is set to attract specialised compa- nies aiming to establish their regional headquarters in the emirate of Dubai, which helps them expand and develop their regional operations to be able to keep pace with the significant growth in eCommerce.” The global eCommerce sector is ex- pected to grow 16.6% CAGR between 2019 and 2022. The Middle East, Africa and South Asia region is also expected to grow 18.4%, the Middle East and North Africa region 24.9% and the GCC 32.9% CAGR. “Dubai CommerCity’s activities align with the strategies set out by the visionary leadership that have been placed to ad- dress the critical issues that have surfaced throughout the past months. The pan- demic has redefined the nature of work in various sectors including e-commerce. “During this period, the role of eCom- merce has expanded and offered several solutions. It has also allowed the UAE to offer unprecedented opportunities to businesses across the region and glob- ally,” added Al Zarooni. REGIONAL NEWS
14 | LOGISTICS NEWS ME | MAY 2021 WWW.CBNME.COM GENDER BALANCE WEBINAR LNME T here is an increasing push to generate gender balance awareness in the logistics and supply chain industry as regionally and interna- tionally, there is a genuine lack of female representation. Looking to remedy the situation locally, Bahrain’s APM Terminals recently hosted a webinar on ‘Promoting Gender Balance in Supply Chain and Logistics’. It was attended by more than 250 local, regional, and international participants. PUSHING GENDER BOUNDARIES A RECENT WEBINAR BY APM TERMINALS ON GENDER BALANCE HIGHLIGHTED HOW AND WHY MORE NEEDS TO BE DONE TO MAKE THE INDUSTRY INCLUSIVE FOR BOTH MEN AND WOMEN
LOGISTICS NEWS ME | MAY 2021 | 15 PUSHING GENDER BOUNDARIES | MAKING THE INDUSTRY INCLUSIVE FOR BOTH MEN AND WOMEN The virtual session shed light on the im- portant role gender balance and inclusion can play in sustainable industry growth and advancement. Speakers engaged in an interactive panel discussion looking at several key topics including how to shape company culture, solutions for attracting more women to the industry and methods for supporting their promotion. Joining the panel were: Susan Hunter, Managing Director of APM Terminals Bahrain; Rania Al Jarf, Director of Gen- der Balance Centre at the Supreme Coun- cil for Women; Eman Ebrahim, General Manager Supply Chain of Foulath Hold- ing; Elizabeth Ndaire, Head of Human Resources – Africa and Middle East at APM Terminals; Esam Hammad, Director of Partnership & Customer Engagement of Bahrain Labour Fund (Tamkeen) and Fatema Ahmed, Senior Ports Develop- ment Specialist for Ports and Maritime Affairs, Ministry of Transportation and Telecommunications. Gender inclusivity Morten Engelstoft, CEO of APM Termi- nals, who was elated with the success of the forum, said: “We are incredibly happy to see gender balance become a more prominent theme in the supply chain and logistics sector. “While there is clearly a long way to go, we all have a responsibility to make this industry more inclusive for both women and men and we at APM Terminals take this commitment very seriously.” Also, commenting on the event, modera- tor Kalyan Krishnan, Head of Markets at KPMG Fakhro, said: “The session on Gender Balance hosted by APM Terminals and supported by the Supreme Council for Women was an opportunity to engage senior leaders and engage in conversation around some of the major challenges, op- portunities, misconceptions and leverages in achieving Gender Balance.” A few points evident from the session was that the industry needs to work to- gether to be able to achieve this milestone and there is ‘silver bullet’ solution. The session also highlighted that while there has been some significant progress, we still need to keep the pressure on to en- sure that we are building a healthy talent pipeline to be able to sustain the progress and build on it. Structured approach There is also a need to influence and transform mindsets and change percep- tions in terms of what women ‘can’ and ‘cannot’ do. With Bahrain being driven by 49% women workforce, which exceeds the 47% globally, there is a need to raise a ‘call to action’ amongst all business leaders in the region to develop a more structured approach towards gender bal- ance within their organisations to ensure they leverag the best talent within the community. Susan Hunter, Managing Director of APM Terminals Bahrain, added: “We’re delighted with the exceptional turnout for this event, which we organised to raise awareness of this important topic and the positive impact that achieving greater gender balance can have for our industries and organisations. “Strong uptake of the forum and the re- markable support we received in hosting it underscores this is an issue that is top of mind for both the public and private sectors, and we look forward to build- ing on the insightful recommendations and solutions that were touched up by the diverse group of business leaders that took part.”
16 | LOGISTICS NEWS ME | MAY 2021 WWW.CBNME.COM AI - SUSTAINABLE LOGISTICS LNME T he current landscape of in- ternational trade has been defined by globalisation and the geographical fragmentation of international production processes. Modern consumer preferences, new manufacturing require- ments, and big, unexpected events such as the COVID-19 pandemic have further reshaped freight patterns. It has led to smaller and more frequent freight shipments and, as a result, to underutilised container space. This has caused a growing number of empty runs and increased demand for rapid and ener- gy-intensive transport such as air cargo. Now, most of the cargo transport de- pends heavily on fossil fuel for propulsion. According to the International Transport Forum report, carbon dioxide emissions from freight transportation account for 30% of all transportation-related carbon emissions from fuel combustion and repre- sent over 7% of global emissions. Trend-setting initiatives The need for smarter and—more impor- tantly—sustainable logistics has become more urgent than ever due to these devel- opments. Luckily, many logistics giants are paving the way for a sustainable future with their trend-setting initiatives. A.P. Moller - Maersk, an integrated container logistics company, has recently announced that they are launching the world’s first methanol-fuelled carbon- neutral liner vessel in 2023 with the goal to achieve a completely carbon-neutral fleet by 2050. Deutsche Post DHL Group, another lo- gistics company, is also on track to become the market leader in green logistics by aim- ing to reduce all logistics-related emissions to zero by 2050. Amazon is taking these efforts even further by co-founding The Climate Pledge - an initiative committed to achieving net-zero carbon across Amazon business by 2040. To accomplish that, Amazon plans to move its operations to renewable energy and de- ploy over 100,000 electric delivery vans. AI PAVES PATH TO SUSTAINABLE LOGISTICS Artificial intelligence is slowly but surely making its way into the logistics industry and is making real and quantifiable improvements on sustainability, Jon Fath, CEO at Transmetrics, tells us
LOGISTICS NEWS ME | MAY 2021 | 17 The Climate Pledge will invest USD100 million in reforestation projects and cli- mate mitigation solutions. Sustainable mindset These efforts are fundamental not only due to their direct impact but because they inspire the whole industry to adopt a more sustainable mindset. Ultimately, the decision about which logistics vendor to choose is made by customers and their ex- pectations will continue to evolve. Consumers start to look beyond the speed of deliveries, demanding the trans- parency of the environmental impact that they make. Following that sentiment, the companies with more eco-friendly offers will lead the market while other players will lag by sticking to the ‘old ways’. To stay ahead of the curve, modern logis- tics companies should adopt innovation as one of the core components of their strat- egy. Now is the right time to invest in an electric or alternative fuel-powered fleet. It can position your company as a sus- tainability leader and will also require building the relevant infrastructure, which in return will serve other people beyond the freight sector, thereby pushing the adoption of eco-friendly transportation even further. Nonetheless, electrification and carbon neutrality do not solve the other problems that the logistics industry faces today: congestion, high energy consumption, and huge inefficiencies are ubiquitous. This is where Artificial Intelligence (AI) can empower the industry to make a leap forward. AI in transport Applying AI in transport optimisation, robotics, drones, and anticipatory ship- ping can make real and quantifiable improvements on sustainability—while making the process smoother and more cost-effective at the same time. Cur- rently, only 12% of logistics companies use AI in operations, but this is expect- ed to grow to 60% by 2025, changing the industry as we know it. One important way that AI is already disrupting freight transportation is through autonomous vehicles. There are many companies across the globe that are working towards fully autonomous trucks that require a sophisticated analysis of road conditions that only modern com- puter vision systems can perform. Furthermore, successful pilot projects have been conducted in both rail cargo and even ocean freight. On top of that, the adoption of AI-powered robotics in ware- houses has increased the overall efficiency of the fulfillment operations. The biggest environmental impact of AI in logistics will come from streamlining and optimising transportation networks and flows. Demand forecasting and predic- tive capacity management can reduce the number of empty trips, increase container utilisation, and optimise vehicle routing. This then decreases the CO2 emissions while improving service levels and profit margins, providing positive side effects such as less congestion in big cities and more accurate delivery forecasts. It is important to outline that AI’s goal is not to replace logistics professionals but to enhance their work. By tackling the most tedious and time-consuming tasks such as analysing the data and forecasting the demand, AI saves time for people to focus on what really matters—customer service. Therefore, the biggest benefits for logistics organisations prevail in the synergy be- tween humans and AI. While building an AI platform for logis- tics, the Transmetrics team has decided that the core focus of our platform is to be a positive impact on the environment and people. By assisting our clients with AI-powered demand forecasting and op- timisation today, we are investing in the sustainable logistics of tomorrow. Adopting AI as the core component of their innovation strategy ultimately leads logistics organisations to become more efficient, eco-friendly, and consequently more customer centric. “CONSUMERS START TO LOOK BEYOND THE SPEED OF DELIVERIES, DEMANDING THE TRANSPARENCY OF THE ENVIRONMENTAL IMPACT THAT THEY MAKE. FOLLOWING THAT SENTIMENT, THE COMPANIES WITH MORE ECO-FRIENDLY OFFERS WILL LEAD THE MARKET WHILE OTHER PLAYERS WILL LAG BY STICKING TO THE ‘OLD WAYS’.” AI PAVES PATH TO SUSTAINABLE LOGISTICS | ARTIFICIAL INTELLIGENCE IS MAKING ITS WAY INTO THE LOGISTICS INDUSTRY Jon Fath, CEO, Transmetrics
18 | LOGISTICS NEWS ME | MAY 2021 WWW.CBNME.COM REPORT LNME N on-profit organisation Dubai Chamber of Commerce and Industry revealed that its member exports and re-exports increased by nearly 24% to reach Dhs22.1 billion in March 2021, compared to the same month last year. During the first quarter of 2021, the value of member exports and re-exports grew by 6.5% year-over-year to reach Dhs54.8 billion, reflecting growing momentum and increased trade activity in Dubai. A total of 166,759 certificates of ori- gin (COO) were issued by the Chamber during the first quarter of this year and March saw a high of 62,235 certificates, reflecting signs of a recovery of the trade sector and enhanced economic competi- tiveness. More than 6,000 new member com- panies joined Dubai Chamber in the first three months of 2021, marking a growth rate of 38.6% y-o-y. Member- ship growth comes after several new initiatives and measures were unveiled over the last year which enhanced Dubai’s value proposition to foreign investors and companies. In addition, 174,000 electronic trans- actions were processed by the Chamber in Q1-2021, while the number of ATA Carnets that were issued and received by the Chamber reached 965 over the same period, amounting to Dhs1.4 billion. Commenting on the latest figures, Hamad Buamim, President & CEO of Dubai Chamber of Commerce and Industry, said: “The statistics reflect improving business conditions in Dubai and the positive impact of various stimulus packages and business-friendly measures, as well as an advanced logis- tics infrastructure and increased efforts to boost and diversify the emirate’s foreign trade.” Buamim also noted that Dubai Cham- ber’s 11 international offices play a crucial role in expanding Dubai’s trade links with promising markets around the world, by identifying bilateral business opportunities, promoting the emirate as a global business hub, and assisting foreign investors who are keen to enter the market. Furthermore, members’ exports and re-exports to Latin America surged 69% to reach a record USD60.5 million in the first quarter of 2021, a trend supported by increased activity among companies in Dubai that are already trading with the region. Brazil accounted for the largest share of issued COOs in the first quarter, or 36%, followed by Mexico with 26% and Venezuela (14%). New data released Dubai Chamber indicated that the increase in Latin America-bound shipments among mem- bers reflected a long-term trend rather than a COVID-led rebound as the declared value of COOs increased at a compound annual growth rate (CAGR) of 17.4% since Q1-2016. The total number of COOs issued for shipments targeting Latin America in Q1-2021 reached a record 739 certifi- cates, which is double the level recorded five years ago. Dubai’s trade sector gets a boost as exports increase by 24%, despite the pandemic and economic showdown NEARLY DHS55 BN WORTH EXPORTS RECORDED IN Q1 “THE STATISTICS REFLECT IMPROVING BUSINESS CONDITIONS IN DUBAI AND THE POSITIVE IMPACT OF VARIOUS STIMULUS PACKAGES AND BUSINESS- FRIENDLY MEASURES, AS WELL AS AN ADVANCED LOGISTICS INFRASTRUCTURE AND INCREASED EFFORTS TO BOOST AND DIVERSIFY THE EMIRATE’S FOREIGN TRADE.”
LOGISTICS NEWS ME | MAY 2021 | 19 here’s to a cleaner future Choosing a gas powered truck will put you and your fleet in the forefront of sustainable truck operations, reduce your CO2 emissions and achieve Euro 6 Emission Legislation without using Adblue or Particulate Matter. Well suited for both urban and regional operations. It can be matched with R, G, L or P cabs and combined with either the Scania Opticruise gearbox or automatic transmissions. For more information about our Alternative Fuels options, please visit www.scania.com/ae/en/home/prod- ucts-and-services/articles/alternative-fuels.html Natural gas (CNG/LNG) Natural gas is methane from pockets in the Earth’s crust. Although it is a fossil fuel, it emits up to 15% less CO2 compared to regular diesel. 15%*
20 | LOGISTICS NEWS ME | MAY 2021 WWW.CBNME.COM World Free Zones Organisation is offering members a platform to share their voice as well as providing assistance and support to thrive in a challenging environment A COLLECTIVE VOICE COVER STORY LNME
LOGISTICS NEWS ME | MAY 2021 | 21 A COLLECTIVE VOICE | THRIVE IN A CHALLENGING ENVIRONMENT G lobalisation contin- ues to the boost the logistics sector as increased produc- tion of goods means the increased move- ment of commodi- ties. The formation of free zones in 1959 at Shannon, Ireland, was cre- ated to improve international trade and ease business operations. Over the past few decades, free zones have gained prominence in the world of business, especially in developing coun- tries such as Asia, the Middle East and Africa, there are an estimated 3,000 such zones across the world, supporting more than 70 million jobs, according to the World Free Zones Organisation. As the establishment of free zones across the world increased, a governing body was set up in 2014 – the World Free Zones Organisation (World FZO). “We represent the interests of this large and diverse group and operate as a not-for-profit global entity, which offers a platform for these free zones as a col- lective voice,” says Dr Samir Hamrouni, the Chief Executive Officer of World Free Zones Organisation. Integration of services The free zones integrate services such as logistics and transportation net- works within a modern infrastructure and offer job opportunities to boost the economy of the host countries. Dr Hamrouni adds: “For them to have a significant impact in the industry, World FZO plays an important role in bringing them together. The organisa- tion acknowledges their accomplish- ments and supports them in moving towards success.” The logistics industry plays a particu- larly important role in the future of free trade zones (FTZs) as the sector has a direct impact on a country’s com- petitiveness. To become a key interna- tional player, it needs to have a strong logistics support. Dr Hamrouni reveals: “Increased production of goods and services and international trade have changed the dynamics of the logistics operations in free zones. This has given rise to node-to-node logistics. These nodes, also called logistics clusters, are loca- tions where shipments are shipped and received from different places through various means of transportation. These clusters involve heavy investments and are beneficial for regional economies in terms of employment opportunities.” >>>
22 | LOGISTICS NEWS ME | MAY 2021 WWW.CBNME.COM COVER STORY LNME Close to 23% of global trade, valued over USD3.5 trillion, flows through free zones, Dr Hamrouni tells us. “As an integral part of the global value chain, free zones play an important role in en- suring that responsible trade practices – from production to distribution and final con- sumption – are maintained. “However, illicit trade con- tinues to be a global problem which affect 3.3% of global trade, where counterfeit and pirated goods continue to enter the trade flow. This involves illegal works such as relabeling, repackaging, or even falsifying paperwork,” he says. To tackle these challenges and promote the security and safety of free zones, World FZO has designed the Safe Zone Certification pro- gramme, in line with the WCO’s SAFE Framework and strictly follow the OECD’s Code of Conduct. It is a voluntary compliance model which helps protect free zones’ reputation and ensure stakeholders of free zones’ integrity, transpar- ency, and clean governance, as well as commitment to responsible trading. A helping hand The pandemic has further given rise to unprecedented challenges for these busi- nesses in free zones across the world. The impact has been such that several trade facets including exchange of resources have been affected drastically. “Turning the situation around to benefit rather than harm the trade is important. We can do that by under- standing the magnitude of the damage and figuring out how it can be steered towards positive change so businesses under free zones can pivot to the new industry normal,” Dr Hamrouni adds. World FZO has been sup- porting the global free zones by offering conversations with global experts and spe- cialists and has come up with the New World Model. He explains what the model does: “The model aims to offer solutions for businesses to cope and thrive in this disrupted economic environment. The New World Model focuses on cash management for busi- nesses, supports disruption of current trends to establish sustainability, digitalisation, risk management through data, information transpar- ency, and inclusivity.” With businesses today facing challenges which are different from what compa- nies were tackling in the past decade alone, free zones are mindful that there is a need to implement new pro- grammes that would facili- tate industrial development. “However, to achieve that, companies need a different strategy, deriving from the experience of past decades,” he says. He adds: “For rapid growth, it is important for businesses to be agile in their decision making and daily operations to cope with the continuously evolving trade sector of emerging econo- mies. If businesses have a central platform which oversee all processes, it is easier for companies to enter new markets faster with less risk.” Transparency and com- munication Along with agility, trans- parency and open com- munication is also vital to the success of businesses in free zones. He states: “The success of the New World Model relies on transparency when it comes to exchange of information. With a more open communication chan- nels, partners will mutually benefit from collaborations and customers will be able to make a more informed decision over companies to choose from. “It will further provide clarity to governments as to which policies work best and which require reforms. Transparent communication will boost the brand value while creating awareness among employees, increase customer engagement and lead to better coordination between stakeholders and business partners.” He adds: “Through our Global Certification Stand- ard, free zones will have ac- cess to a solid framework for transparent governance that complies with international standards set by the World Trade Organisation (WTO) and the World Customs Organisation (WCO). These tools can work towards improving product safety, personnel training, and trade monitoring for free zones.” Sustainability and social responsibility Sustainability is another important aspect that World FZO is pushing forward with its members. Free zones “Turning the situation around to benefit rather than harm the trade is important. We can do that by understanding the magnitude of the damage and figuring out how it can be steered towards positive change so businesses under free zones can pivot to the new industry normal.” Dr Samir Hamrouni, Chief Executive Officer, World Free Zones Organisation
LOGISTICS NEWS ME | MAY 2021 | 23 A COLLECTIVE VOICE | THRIVE IN A CHALLENGING ENVIRONMENT must align their goals to sustainability and social responsibility if they want to maintain business and economic leadership, he says. The organisation has been developing ways to enhance free zones’ engage- ment in sustainable development, particularly its role in contributing to the achievement of the 17 Sustainable Development Goals of the United Na- tions or the SDGs 2030. He reveals: “To help free zones measure their performance level, we launched the FZF Izdihar Package, which is part of our ‘Free Zones – The Future (FZF) Programme’ initiative.” The package comprises several tools such as the Izdihar Index, Maturity Curve, and Tailored Training and Con- sultancy. The Izdihar Index measures the performance of free zones in terms of their use of natural resources, adher- ence to ethical and labour standards and sustainability, and other qualita- tive indicators. “Their performances are rated and revealed through an annual survey and free zones which deliver strong perfor- mances are awarded and certified. This inspires them to improve their per- formance and contribute to achieving global goals,” he notes. “The Maturity Curve offers a bench- marking tool where areas of improve- ment of the individual free zones are identified. A specific recommendation or roadmap is then developed for the free zone to help improve its perfor- mance. In this regard, the Tailored Training and Advisory provides free zones with customised solutions that will enhance its value proposition and make the free zone future ready.” Concluding, Dr Hamrouni says: “The World FZO is a representative and collective voice for all the free zones across the globe. The organisa- tion treats the issues and challenges of these free zones as its own and strives to solve them with the best possible outcome.” “To help free zones measure their performance level, we launched the FZF Izdihar Package, which is part of our ‘Free Zones – The Future (FZF) Programme’ initiative.”
24 | LOGISTICS NEWS ME | MAY 2021 WWW.CBNME.COM INNOVATION IN TRANSPORT LNME F rench MNC Thales, a pioneer in advanced technologies such as connectivity, big data, artificial intelligence, cybersecurity, and quantum computing, is using its expertise to enhance public transport systems, especially the rail industry. Rail transport operators are looking to in- novative digital solutions and services for improved service performance and energy efficiency, and to boost the attractiveness for users. Thales helps transporting passengers safely, and with best possible experience, supervises operations with accurate situ- ation awareness, and optimises transport service efficiency. Using digital technologies such as IoT, 5G, cloud and web IT, data analytics and AI, Thales designs advanced solutions such as digital signalling, train autonomy, mobile ticketing, passenger flow analyt- ics, data driven operation control, smart maintenance, which will drastically impact the way we all travel. Long lifespan metro systems With the digital architecture of Thales’ latest metro signalling system SelTrac G8, software functionalities are permanently upgradable with no traffic disruption, a modular and resilient equipment platform approach allows for future technology insertion such as train autonomy, and health monitoring facilitates data driven operations and maintenance. SelTracG8 helps operators reduce installation and maintenance costs while upgrading system functionalities to meet passenger demand, preserving safety and service reliability. Sustainable mobility is another driving force pushing Thales to innovate. Thanks to the capability of several complex al- gorithms, Thales’ driver advisory system, GreenSpeed, can optimise the speed for TECHNOLOGY DRIVES THE WAY FORWARD The rail industry is the backbone of public transport, Thales is introducing innovate solutions to better the experience for passengers and the operators
LOGISTICS NEWS ME | MAY 2021 | 25 TECHNOLOGY DRIVES THE WAY FORWARD | THALES IS INTRODUCING INNOVATE SOLUTIONS energy saving. This will reduce emissions for up to 15% that is the equivalent to the consumption of a city of some 2,000 inhabitants per year. For metros, Thales latest signalling system SelTracTM G8 will enable to reduce traction energy consumption by 15% when compared to traditional CBTC by loading efficient speed profiles into the train’s on-board system. Alcino de Sousa, VP - Managing Director, Thales’s Urban Rail Signalling, explains: “Since its introduction on the urban rail market, SelTracTM has become a global benchmark. With this new gen- eration of the SelTracTM system, Thales is supporting the digital transformation of urban rail operators by delivering an innovative solution that includes the latest technologies and paves the way for the autonomous train operations of the next 30 years and beyond.” SelTrac G8 also brings enhanced services to support operators to achieve 100% availability and on time service. Services capabilities including health monitoring features for leaner maintenance teams and faster response capability, increased resil- iency to failure with greater visibility of seamless hardware and software enhance- ments to extend the system life with no interruption to operations. Among other improvements, the SelTrac G8 platform is autonomy ready. One of the autonomous capabilities is designed to make both greenfield and brownfield CBTC deployments faster and easier than ever, with rapid train conversion and mini- mal trackside equipment. Innovative collaborations Co-innovation is also essential as it bridges the gap between a new concept or technology in the lab and an actual working solution solving a real opera- tional problem. This accelerates market entry for new solutions and is a sign of trust between customers and Thales. For instance, Thales works with New York Metro and France National Railways for autonomous metros and trains, German national Railways for advanced signalling concepts, or Singapore Metro for pas- senger guidance systems and hands-free ticketing. SERVICES CAPABILITIES INCLUDING HEALTH MONITORING FEATURES FOR LEANER MAINTENANCE TEAMS AND FASTER RESPONSE CAPABILITY, INCREASED RESILIENCY TO FAILURE WITH GREATER VISIBILITY OF SEAMLESS HARDWARE AND SOFTWARE ENHANCEMENTS TO EXTEND THE SYSTEM LIFE WITH NO INTERRUPTION TO OPERATIONS. >>>
26 | LOGISTICS NEWS ME | MAY 2021 WWW.CBNME.COM “In a competitive market, it is absolutely vital that industrials find ways to make railway more attractive. And this is where innovation helps. One of the biggest chal- lenges today is that you cannot just close a railway network while you upgrade them. People still need to go to work and to travel. That’s why we’re putting so much effort into the solutions that can be de- ployed whilst having minimal disruption,” says Millar Crawford, Executive VP, Thales’s Ground Transportation Systems. Real-time passenger density insights AI and data analytics driven applica- tions are improvements that Thales are introducing for either task automation or decision support. Distributed Intelligent Video Analytics (DIVA) is the new Thales solution to monitor social distancing, and to guide passengers in the station and on the platform. The solution helps alleviate crowding by reducing busy times, and consequently enhances overall passenger safety, comfort, and travel experience. Nobody likes crowded trains and plat- forms. For passengers, crowding is one of the main causes of dissatisfaction. For operators, crowding is a concern because it adds to delays and can affect safety. This challenge is amplified by grow- ing passenger demand. On the eve of the COVID-19 crisis, annual metro ridership globally was more than 62 billion – up 40% in just seven years – and rising at a rate of more than 5% a year. Covid-19 has reversed this trend, at least temporarily. At the same time, it has brought the dangers of crowding into sharp focus for everyone. The immediate need is to enable social distancing and to do everything possible to prevent crowds from developing. But crowding is difficult to manage. First, railways are complex and there are hundreds of locations to be monitored, including trains. Secondly, if transport operators can detect crowding, they still need a way to guide passengers to less busy parts of platforms and trains. Existing tools DIVA uses existing CCTV cameras – on platforms and trains – to measure crowd density. No additional sensors are re- quired. Passenger density is calculated in real time using video analytics and passen- ger guidance can be provided via platform displays that show which carriages of an approaching train are busy and which are not with three levels of density - red, yel- low, and green coding is used to indicate density. Meanwhile, heat maps of stations and trains can be used in the Operations Con- trol Centre (OCC) to monitor passenger movements across the entire system. Video analytics can also be used for many other transportation use cases, among them the detection of unattended luggage and trespassing on platforms, and whether there are still passengers onboard when the train reaches the end of the line. Benoît Couture, VP, Managing Director, Thales’s Integrated Communication and Supervision Systems, says: “Rail operators are facing new challenges about passen- gers’ safety. Passengers need to be able to move freely on stations and platforms, to embark and disembark from trains safely and quickly. These are fundamental requirements for the smooth running of a railway network. Crowding makes all this more difficult. “I’m pleased to present our new video analytics solution for passenger density monitoring and guidance. This solution provides operators with tools to man- age crowding on stations and trains and allows them to tackle the root causes of congestion.” INNOVATION IN TRANSPORT LNME “IN A COMPETITIVE MARKET, IT IS ABSOLUTELY VITAL THAT INDUSTRIALS FIND WAYS TO MAKE RAILWAY MORE ATTRACTIVE. AND THIS IS WHERE INNOVATION HELPS. ONE OF THE BIGGEST CHALLENGES TODAY IS THAT YOU CANNOT JUST CLOSE A RAILWAY NETWORK WHILE YOU UPGRADE THEM.”
02 – 04 NOVEMBER 2021 DUBAI EXHIBITION CENTRE GET INVOLVED TODAY Next generation mobility and logistics event 3,000+ VISITORS | 200+ SPEAKERS | 100+ HOURS OF CONTENT hypermotion@uae.messefrankfurt.com www.hypermotiondxb.com
28 | LOGISTICS NEWS ME | MAY 2021 WWW.CBNME.COM COMMERCIAL VEHICLE LNME T he heavy vehicle and equipment industry is undergoing a change. Customers, whether they be logistics companies or construction magnates, are no longer just looking to just purchase an asset they are demanding a whole suite of services. Competition is fierce in this market which means customer is king. Truck and equipment manufacturers as well as distributors have to offer a lot more to woo customers than just the vehicle and its features. Al Masaood Commercial Vehicles & Equipment, the Abu Dhabi-based distributor for UD Trucks, Renault Trucks and Unicarriers Forklift, has seen a demand for products that offer a whole suite of benefits from warranty, servicing to financing and driver training. MEETING DEMANDS General Manager Mohamed Nabih El Zeftawi says: “With people choosing to shop online more and not in the malls as much, there is any increased delivery of products to homes, and logistics firms are benefiting. Which means there is a need for more trucks and lorries in the market. “This has become more challenging for all the players in the market. We are in a very demanding market as customer expectation is extremely high. They are always looking for the best, and customers in this region are educated, they know what they want. The responsibility falls on us to approach customers and convince them that we are the best solution.” ADAPT, EVOLVE AND THRIVE Abu Dhabi conglomerate Al Masaood’s Commercial Vehicles & Equipment division reveals how the business is evolving to accommodate customer needs and environmental requirements
LOGISTICS NEWS ME | MAY 2021 | 29 ADAPT, EVOLVE AND THRIVE | AL MASAOOD’S COMMERCIAL VEHICLES & EQUIPMENT DIVISION Customer requirements have become incredibly detailed, he says. “The customer is no longer looking to purchase a truck but rather he is looking for a solution. When we talk of a solution, we mean a vehicle with a fixed superstructure and bumper-to-bumper warranty (most probably extended warranty - three to five years), which is risky for the dealer. The customer wants a peace of mind. In addition to that, customers are also looking for financing options and training for drivers.” POSITIVE OUTLOOK Al Masaood is also seeing a demand coming from the construction sector. With many construction projects put on hold in 2020 due to the pandemic, the market slowed down. However, as the pace has picked up, developers are fast tracking project delivery. El Zeftawi adds: “Since the beginning of the year, we’ve witnessed a steady increase in sales. The first quarter was looking good, which indicates that the rest of the year will be better. We are expecting the last quarter to bring a big change in the market.” The company has recently begun the dealership for Japanese forklift brand TCM. Al Masaood forecasts a demand for forklifts as eCommerce and eShopping are here to stay. “The rise in eCommerce has positively impacted the trucks and machinery sector, and we are seeing a requirement for our vehicles. We are also increasing our market share within the sector which means that our turnover and bottom- line in increasing year-on-year. We are quite elated with this success, El Zeftawi reveals.” He adds: “The region is quite busy, and we are constantly monitoring every movement in the market. This is the only way to be proactive and get a lead. We have noticed a difference in customer perceptions in the past few years and this has changed our approach towards our sales techniques. The UAE is a dynamic market, and we need to be quick in our approach to keep our market share and increase it each year.” GOING GREEN Al Masaood Commercial Vehicles & Equipment also has a fair share of hurdles to overcome, one being environmental issues. El Zeftawi, explains: “The country has moved to Euro IV and very soon it will jump to Euro V and VI. We were the first country in the region to apply this emission standards. It kept us a bit isolated from the GCC, but we are taking the lead and we are proud to do that.” The distributor is also taking a head on approach to the electric vehicle (EV) movement. “We are overly excited to be support the sustainability initiative and are very keen to offer hybrid and electric options to our customers. We are working with our partners to provide these options in the region.” Electric vehicles pose quite a few challenges for the region due to the high temperatures. Especially for heavy vehicles such as trucks and buses, the batteries are unable to withstand the heat – 50 degrees Celsius and higher. He concludes: “A lot of our truck manufacturers such as UD and Renault are operating electric trucks in Europe, but there is a lot more to be done for them to exported to the Middle East. They are doing their absolute best to make this happen very soon, and we hope to be the first agency in the region to offer EVs to our customers.” Mohamed Nabih El Zeftawi, General Manager, Al Masaood’s Commercial Vehicles & Equipment division “WITH PEOPLE CHOOSING TO SHOP ONLINE MORE AND NOT IN THE MALLS AS MUCH, THERE IS ANY INCREASED DELIVERY OF PRODUCTS TO HOMES, AND LOGISTICS FIRMS ARE BENEFITING.”
30 | LOGISTICS NEWS ME | MAY 2021 WWW.CBNME.COM INTERVIEW LNME What are Suhara Logistics’ plans? After a seamless change of ownership from Barloworld Logistics LLC (Mid- dle East) and rebranding the business in 2020, our strategy for 2021 is to further establish ourselves in the UAE market and launch operations in East Africa’s rapidly growing logistics industry. In the UAE, via investment in new transport assets and world class fleet management software, we aim to capture a larger portion of the transportation business, by providing effective logistics options and a one-stop solution to our customer base. Growing our transport credentials and presence, whilst challenging the competi- tive transport market evident within the UAE, will be supported by our group partner, Primefuels. Primefuels is a multi- modal logistics company with over 25 years’ experience, specialising in trans- port solutions in East and Central Africa, operating a fleet of over 500 trucks. How crucial is road infrastructure to the logistics industry? Extremely vital, as it is the medium in which arguably, the most important step of the supply chain is completed. Roads, and good road infrastructure allows companies like Suhara Logistics to get goods to the end customer efficiently and on time. Logistics operations prior to last mile delivery sets the supply chain up for the crucial transport leg, this is where a company can showcase its efficiency, planning and customer service to get goods to where the customer needs it, when the customer needs it. What is the current state of road infrastructure in the UAE and what improvements can be made? The UAE road infrastructure is one of the most advanced globally and is improving constantly. The UAE is home to some of the most well-constructed road corridors in the world; housing multiple lane high- ways, linking the key areas throughout all seven emirates. The UAE’s consistent upkeep and maintenance on a large per- centage of all roads is to be commended. This lends itself favourably to the logis- tics industry and it allows people and companies to get large volumes of goods from A to B. THE ROAD TO SUCCESSFUL DELIVERY explains how good road infrastructure makes for seamless delivery of goods, and is one of the most essential aspects of the logistics industry Daniel Caton, General Manager of Suhara Logistics
LOGISTICS NEWS ME | MAY 2021 | 31 THE ROAD TO SUCCESSFUL DELIVERY | DANIEL CATON Many improvements are currently being made that will iron out some inefficiencies dealt with in past years, primarily ensuring road networks are not overly complicated, as navigating road signs is a continual concern, occasionally resulting in increased transit time, unnecessary drive time and driver frustration. What are some of the challenges the logistics industry is facing in terms of road infrastructure and getting goods across the country? Current challenges stem from high vol- umes of heavy vehicles (buses, trucks, tankers etc.) consistently operating on main roads in the main regions, creating large amounts of congestion and slowing down overall traffic flow. Increased transit times due to some UAE main roadways not crossing (i.e., drive a considerable dis- tance in the opposite direction just to get to your destination that is behind you!). We find our light vehicles delivering into the heart of urban areas face issues locat- ing delivery destinations and sufficient parking, to combat this, we believe invest- ment in technological innovation is key. The UAE is blessed with an abundance of available software tools and services to assist logistics providers in finding our cus- tomers’ locations and communicating with them whilst en route. Why do we need good road infrastruc- ture and how are you working with government authorities to implement your ideas? The global pandemic has highlighted the role of truck drivers as essential workers in challenging times, ensuring essential cargo reaches those who need it. Good road infrastructure is vital to move goods around the country to the end user and as logistics continues to grow, and in turn the transportation portion of the supply chain, it is crucial to continue development, maintenance, and expansion to allow free and efficient flow of passenger and cargo traffic. We are extremely fortunate in the UAE that the government has invested so heav- ily in this area, our group partner, Primefu- els, operate in East and Central Africa, one of the harshest geographies in the world to transport goods. Covering long distances over generally poor road infrastructure leads primarily to challenges in driver safety. As a group, the safety and welfare of our drivers is of the upmost importance and we will continue to invest in best-in- class practises and technologies to main- tain their wellbeing. Ideas stemming from Suhara Logistics have not been taken up with any govern- ment body yet, but we are aware of the UAE governments number of platforms that welcome ideas and feedback. As we grow and continue to develop our trans- port offerings, our ideas will be conveyed to the government to improve the already impressive road infrastructure evident in the UAE. “THE GLOBAL PANDEMIC HAS HIGHLIGHTED THE ROLE OF TRUCK DRIVERS AS ESSENTIAL WORKERS IN CHALLENGING TIMES, ENSURING ESSENTIAL CARGO REACHES THOSE WHO NEED IT.”
32 | LOGISTICS NEWS ME | MAY 2021 WWW.CBNME.COM TRANSPORTATION LNME S omebody could give us a call this morning, we’ll be there this afternoon and tomorrow we’ve probably got equipment on the ground.” A bold statement from the man now leading Mam- moet’s commercial activity - but one gained from a lifetime of understanding customers of all sizes. Like many of us, Darren Adams finds his horizons narrowed, working from his home office in the north-east of England; the signed Newcastle United shirt on his wall a reminder of the world that will shortly return. A mechanical engineer at heart, he was given his first big break in the industry thanks to a familiar name. Starting with a local heavy haulage firm, he was head-hunted for the new UK branch of an exciting foreign-owned company - Van Seumeren - start- ing his career in North Sea offshore. “I was working with all the self-propelled modular transport- ers (SPMT) that Van Seumeren had in the UK, which was about 176 lines if I remember rightly – at that time this was a huge amount, now it’s very little, you know,” he says. It was a time spent getting his hands dirty. “I was doing the engineering, but I was also going to the job sites and running the jobs, executing the work with the guys. If we had to connect the SPMTs together and get them ready, I was there with the team doing it.” ‘Whatever the size of the job, we’re here for you’ Mammoet’s new Group Commercial Officer Darren Adams is making it his mission to serve small and medium-sized businesses better than ever before - and it is more than just talk. Throughout a lifetime in heavy lifting, he’s taken on every job it has to offer - from managing continents to clambering under SPMTs
LOGISTICS NEWS ME | MAY 2021 | 33 Work hard, play hard He was responsible for projects from the first call until equipment was back at base, taking care of colleagues deployed from their native Netherlands. “The guys really liked coming to the UK because everything was organised for them, and it was also close to some pubs and some decent eating houses. That part of the job; the human side, is especially important for the job,” he explains. It’s a time Adams remembers fondly, and clearly one that plays a big part in who he is today, and how he approaches his work. His passion for projects lies first and foremost in the yard; in using his experience to understand each lift on a detailed technical level and communicating it effectively - or as he puts it “I’ve been there, I’ve got the T-shirt”. One project stands out for an offshore fabrication yard in Scotland: “I sold the project, but also drove the module out of the fabrication shop, put it onto the barge, set it down, brought the trailers back off, de-mobilized – with the team alongside me - so the clients saw that we could tender, negotiate, engineer and execute the whole thing,” he elaborates. Around the turn of the century, Adams took the opportunity to manage the North American business of the newly renamed Mammoet. This experience was transformative – he would spend the majority of the following two decades there, becoming an increas- ingly important figure in the no-nonsense world of Texas oil and gas. It’s from these experiences – leaving projects filthy and exhausted, working side-by-side with customers – that Adams draws his conclusions about business. “You’ve got to be close to the customer. You’ve got to understand their needs; their wishes, their drivers – why they get up in the morning.” Increasing understanding It’s an attitude that is fundamental for Adams, whatever the project’s size or scope. And it’s about more than just being easy to deal with, personally – it’s about being able to hold meaningful conversa- tions from the very first moment. He says: “To serve customers best, you’ve got to have a good solid under- standing in some detail of how to do the work. You should be able to explain step- by-step how you’re going to do the job, where you see the pros, where you see the cons, how you can save some time for them, where we can save costs for them.” To help with this, Adams is putting his faith in young engineers – in developing experts that are capable of understanding and communicating technical concepts - ideally borne of their own experience. He adds: “I’m a big believer in the skill- set we have inside this organisation. Some of our talents rise to be more commercial people, some will go down the project ‘WHATEVER THE SIZE OF THE JOB, WE’RE HERE FOR YOU’ | MAMMOET >>> “I’M A BIG BELIEVER IN THE SKILLSET WE HAVE INSIDE THIS ORGANISATION. SOME OF OUR TALENTS RISE TO BE MORE COMMERCIAL PEOPLE, SOME WILL GO DOWN THE PROJECT MANAGEMENT ROUTE.” Darren Adam, Group Commercial Officer, Mammoet
34 | LOGISTICS NEWS ME | MAY 2021 WWW.CBNME.COM management route. If we can guide them and see which ones go left, which ones go right - that is the only way forward in my opinion.” So, he is on a mission to make Mam- moet focus just as closely on its “bread and butter” customers - small and medium-sized businesses – as it does on global megaprojects. As he did in the yard, Adams wants to see the entire Mammoet organisation continue to build long-lasting, meaningful customer relationships. “The focus has got to be on this, from the boardroom to the smallest job site, in every region,” he emphasises. “You would say that we are closer to most jobs – sure there is always local competition – but we should be able to be cost- effective from a mobilisation and demobilisation perspective.” SUPPLY CHAIN LNME
LOGISTICS NEWS ME | MAY 2021 | 35 Helping local businesses By changing its focus here and elsewhere, Mammoet can use the many assets it already has to help small and medium- sized business to thrive. With over 140 offices worldwide, distance should never be an excuse. He adds: “You would say that we are closer to most jobs – sure there is always local competition – but we should be able to be cost-effective from a mobilisation and demobilisation perspective.” Then there’s technical expertise. Quite often, smaller projects demand the engineering skill of much larger ones - “if we’re moving a 20,000t module, it’s never going to fall off the trailer”. However, when you need to remove façade modules from a building using its own window cleaning track or drive a suburban house down the street, specialist skillsets are needed – even though the loads themselves are smaller. Adams notes, “it’s good to be supported by such a highly-experienced group of people.” Finally, where emergencies happen customers need fast action. Mammoet’s position as the holder of the largest fleet of heavy lifting equipment allows it to respond quickly, and without delay. He explains: “If you’ve got an emer- gency job or something has cropped up and you’ve got to address it, then we have the resources to deliver this with our own assets, with our own toolbox, locally – without having to wait for any third-party suppliers.” Adams knows from personal experience what is at stake when someone picks up the phone to call Mammoet, and his mes- sage to customers is clear. “Whatever the size of the job, your busi- ness is as important to us as working with an energy multinational. And no matter if the load is a 10,000t topside or a single air conditioning unit, we have the local resources, capability and backup to help you succeed.” ‘WHATEVER THE SIZE OF THE JOB, WE’RE HERE FOR YOU’ | MAMMOET
36 | LOGISTICS NEWS ME | MAY 2021 WWW.CBNME.COM T he COVID-19 pandemic had put supply chains leaders under extreme stress and forced many companies, and entire industries, to rethink and transform their global supply chain model to meet the needs of this new normal and ensure resiliency in the era of social distance working. The UAE has impressively trans- formed itself from a logistics hub into a supply chain nerve centre in recent years. The Dhs220 billion UAE logistics sector is expected to contribute 8% to the UAE economy by 2021. With many industries depending on goods and materials from across the globe, ramifications were felt through global supply chains, from raw materials to finished products. Increased globalisation, economic uncertainty, and faster product lifecycles made today’s supply chains much more complex to manage. The pandemic proved that a single event could have a domino effect across an entire chain, and many busi- nesses had to navigate through unchartered waters. Protecting the supply chain in a crisis requires speed and skill; it’s better to plan ahead than be forced to play catch-up. 4 Of course, it’s difficult to predict and get ahead of natural disasters and accidents. Still, the inability to fully understand how to plan for disruptions and the inevitable shortages are the signs and symptoms of a stressed supply chain. Being able to play out scenarios and have a disaster recovery plan is key. To do so, requires data transparency, agility, and the prepared recommendations to take actions. As businesses recover from this disaster, the focus during this year will be to use data to build in transpar- ency first, use that transparency to understand their risk exposure and finally make recommendations to plan accordingly. There are numerous ways data analytics can improve supply chain efficiency: validating data; detecting anomalies; benchmarking operations; allowing for mobile reporting and visibility into global logistics’ of- fering real-time route optimisation, improved demand forecasts, and inventory management; and providing for responses to government audits. A recent Gartner survey revealed that 29% of surveyed organisations said they had achieved high levels of ROI by using analytics for their supply chain business. Analytics can help augment the emergency response to predict future risks by spotting patterns and trends throughout the supply chain and help keep three major parts of a supply chain moving. Reshaping demand forecasting The unexpected rise in demand can prompt planners to quickly evaluate the level of safety stock inventory and move it to mitigate the risk of running out of raw materials or finished goods. Through the analysis of demographics and population densities, planners can easily reprioritise shipping locations as well as utilise drive times and logistic details so that inventory moves to the right locations in time. To further optimise production during shifting demand patterns, planners and buyers may need to reshape previous forecasts based on alternative sup- pliers and raw material availability, including current running and safety stock levels. Analysts need to interpret historical dark data from known situations like previous recessions, or crisis data from flood or hurricane emergencies to model and build a forward-looking forecast into recovery. Data science and predictive modelling is the only way to see into the future. It provides deep and actionable insights for teams looking to optimise the production and dis- tribution of equipment, services or other supply-chain processes required. ROBUST & RESILIENT ANALYTICS KEEP SUPPLY CHAINS RUNNING >>> Abboud Ghanem, Regional Vice-President - Middle East & Africa, Alteryx, reveals how analytics can help the supply chain industry adapt to the future LNME OPINION
LOGISTICS NEWS ME | MAY 2021 | 37 ROBUST & RESILIENT ANALYTICS KEEP SUPPLY CHAINS RUNNING THE PANDEMIC PROVED THAT A SINGLE EVENT COULD HAVE A DOMINO EFFECT ACROSS AN ENTIRE CHAIN, AND MANY BUSINESSES HAD TO NAVIGATE THROUGH UNCHARTERED WATERS. Abboud Ghanem, Regional Vice-President - Middle East & Africa, Alteryx
38 | LOGISTICS NEWS ME | MAY 2021 WWW.CBNME.COM Reshaping suppliers and activating new resources Maintaining a flexible supplier frame- work is critical in times of crisis and supplier failure can put an instant stop to operations if raw materials necessary for manufacturing aren’t ready in time. The measurement and optimisation of supplier performance is critical to meet- ing procurement needs, and complex supply chain environments require a pool of alternative suppliers to draw upon to avoid stoppages down the line. Analytically savvy businesses are: > Empowering procurement functions to assess risks by analysing goods supplied from alternative suppliers to quickly identify a pre-approved part or material substitutions and activate the product or material redesigns. > Utilising analytic forecasting to ensure that in-market sourcing groups diver- sify suppliers to reduce dependence on a possible single high-risk facility or part. > Evaluating what-if scenarios to source pre-approved alternative tier two and three vendors or product substitutions to cover the shortfall and activate product redesigns based on currently available resources. Reshaping logistics and time to de- livery When working on redistributing cur- rent inventory and materials from possible quarantined areas, or mov- ing safety stock to feed high demand areas, its crucial to be able to quickly analyse and secure additional means of transportation based on individual product lead times as supply and capac- ity fluctuate. From understanding carrier options and analysing spatial components -- such as drive time variables and trade areas to carry out effective rerouting of deliveries -- data from geospatial sources, including real-time satellite po- sitioning, tracking and geofencing can make sense of a company’s complex, distributed supply chain. Understanding where 100,000 trucks are moving raw or processed materials across continents can lead to better insights around potential bottlenecks or transportation hubs to improve deliveries or reduce downtime. Predictive analytics can model scenarios and help create workflows to deliver real-time estimations of inventory and forecasts for spare capacity or shortfall. Building robust supply chains Critical decision-making requires good information and good data. Consequently, data and analytics should serve as stabilisers to help companies model prospective business scenarios so they can enable the necessary evaluation, adaption, and course-correction in response to market conditions. As businesses across the UAE gear up not just to survive, but to thrive in 2021, predictive analytics will further emerge as a crucial tool for mitigating risks, managing volatility and offsetting risk. During the pandemic we saw forecasting models and processes simply break down. With supply chains more complex and dynamic than ever, moving forward it will be crucial that they be augmented, automated, and enhanced through the support of analytics processing that matches their sophistication. LNME OPINION
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