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CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE MAY 2022 H E A V Y L I F T I N G Integrated transport solutions I N T E R V I E W Championing sustainable marine solutions S U S T A I N A B L E F U E L S Is bio content in fuel posing risks to marine assets? Madhav Kurup Hellmann Worldwide Logistics has made great inroads in the region in the past two years PURSUING PROGRESS
A MEMBERS OF EMIRATES TRANSPORT BUSINESS CENTERS:
LOGISTICS NEWS ME | MAY 2022 | 3 IN THIS ISSUE PURSUING PROGRESS 10 REGIONAL NEWS 16 INDUSTRY LOGISTICS A CHALLENGING NEW ERA IN PARTS DISTRIBUTION Wondered how logistics for a mining equipment company works? Robert Van der Waal explains how getting parts where they need to be has never been more demanding 20 SPECIAL REPORT LOGISTICS SOFTWARE SOLUTION PROVIDERS YOU SHOULD KNOW ABOUT In this special feature, we shine the torch on software solution providers in the logistics industry who are raising the bar with innovative, advanced, and optimised solutions to improve accuracy, minimise costs and increase transparency 38 INTERVIEW CHAMPIONING SUSTAINABLE MARINE SOLUTIONS Rasso Bartenschlager, General Manager of Al Masaood Power, talks about the division’s latest technologies and sustainable solutions showcased at Dubai International Boat Show 40 SUSTAINABLE FUELS IS BIO CONTENT IN FUEL POSING RISKS TO MARINE ASSETS? Pierre Poitras, Technical Consultant at Conidia Bioscience, looks at how the increased percentage of biofuels can raise the cost of fuel as well as leave it susceptible to microbes 44 HEAVY LIFTING INTEGRATED TRANSPORT SOLUTIONS Combined marine and land transport offering creates solid foundation for project market logistics in the Middle East Hellmann Worldwide Logistics has made great inroads in the region in the past two years 32 20 38 44
6 | LOGISTICS NEWS ME | MAY 2022 WWW.CBNME.COM All rights reserved © 2022. 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 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 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 EDITOR’S NOTE LNME But we are still in the nascent stage of exploring these technologies to learn what all they can do for your business. Up until a few years back, the logistics and supply chain sectors were reliant on several manual processes – from booking container space on a vessel, hiring a truck to move goods, and basic movements of goods. Today, each of these processes can be done online in a matter of seconds, not to mention the ‘expected norm’ of conveyor belts and robotic forklifts that are making their presence felt more within our warehouses. AI and machine learning technologies are enabling businesses to build self-governing supply chains. From helping logistics stakeholders enhance delivery planning, optimize inventory management, and ensure efficient route planning to understanding customers better, the industry will witness rapid deployment of AI and ML-powered logistics management tools. A report by Accenture highlighted that 36% of large, mid, and small-size organisations have successfully adopted AI for logistics and supply chain processes. Also, 28% of the survey respondents are at the threshold of bringing AI to logistics. So, here’s a question, what’s next? Following Mark Zuckerberg’s announcement of the metaverse in August 2021, we’ve seen many industries such as retail, real estate, manufacturing, and architecture, apart from gaming and entertainment jump onto the virtual world bandwagon. Is the metaverse the next big thing for logistics? T echnological innovations are moving at the speed of light, we have seen that within the logistics and supply chain as well. From blockchain to AI, IoT, automation and robotics, each of these technologies are paving the way for more efficiency, transparency, scalability, reliability, security, and reduced costs. It’s a recurring theme within this issue, and eagle eye readers would have spotted this trend in our previous issues as well. The focus on technology-related articles is Logistics News Middle East’s endeavour to shine a light on the ‘here and now’ in the industry. Jochebed Menon Editor, Logistics News Middle East jochebed@bncpublishing.net
NEW IVECO S-WAY: HIGH TECHNOLOGY AND EFFICIENCY FOR ON-ROAD MISSIONS The new IVECO S-WAY, with a completely redesigned and reinforced cab, offers a wide choice of Euro III/V diesel engines, a delivering class-leading power from 360 HP to 560 HP Euro III / 570 HP Euro V and superior fuel-saving devices, such as anti-idling feature, Ecoswitch, Ecoroll and Smart Alternator. 12-speed HI-TRONIX automated transmission with the most advanced technology in its category, electronic clutch and best-in-class torque-to-weight ratio. NEW IVECO T-WAY: HIGH PRODUCTIVITY AND SAFETY ON OFF-ROAD TERRAINS With a complete line-up of AWD and PWD versions and the the 16-speed HI-TRONIX automated gearbox, the IVECO T-WAY features a host of functionalities such as Rocking Mode, Off-road Mode, Creeping Mode and 4 reverse gears to tackle with ease the toughest off-road conditions. The new architecture of the EBS system, combined with disc brakes on all wheels, greatly improves the vehicle’s performance and the driver’s safety in the most demanding applications. DRIVE THE NEW WAY
10 | LOGISTICS NEWS ME | MAY 2022 WWW.CBNME.COM REGIONAL NEWS LNME T he UAE’s latest policies support- ing local industry are already creating significant value within the manufacturing ecosystem, according to Eng. Jamal Salem Al Dhaheri, Chairman of Ducab. The company is one of the UAE-based companies championing Made in the Emirates industrial products on the global stage—now serving 45 markets worldwide. Al Dhaheri’s comments follow the re- cent confirmation from Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Af- fairs, that the UAE will focus on growing its industrial sector and achieve more self-sufficiency in the next 10 years. Sheikh Mansour’s vision was presented during the World Government Summit and complements the Operation 300bn industrial strategy announced in 2021. “Today, the UAE’s industrial sector makes a vital contribution to the coun- try’s economic growth and diversifica- tion. But as seen in the initiatives put forward by senior government leader- ship this week, we are a country that never stands still,” says Al Dhaheri. “Recent industrial strategies continue to be supported through progressive policies on everything from local entre- preneurship to product certifications, materials sourcing, and local skills train- ing.” Cooperation between government entities and national industrial champi- ons will remain a decisive factor in the accelerated development of the UAE’s industrial landscape, adds Al Dhaheri. “Each day we must look at ways to emphasize product innovation, the application of advanced technology, and upholding the highest safety and quality standards. These must remain the hallmarks of Made in the Emirates industrial products and be upheld consistently across the industrial land- scape.” This approach will not just lead to economic benefits, but value crea- tion in other areas too. “In addition to being a more economically diverse nation, UAE industrial leaders are putting forward innovative ideas that generate positive social and environ- mental impact in their fields. These investments include a transforma- tion in the way that we use, recycle, and repurpose materials to reduce our climate impact and build a more sustainable tomorrow,” concludes Al Dhaheri. “When you consider the scale of these industrial operations, the impact is quite considerable.” UAE’S INDUSTRIAL PROGRESS TO BRING ECONOMIC VALUE AS WELL AS SOCIAL AND ENVIRONMENTAL BENEFITS: DUCAB CHAIRMAN
LOGISTICS NEWS ME | MAY 2022 | 11 REGIONAL NEWS I ndustrial rents in Dubai and Abu Dhabi continue to recover as demand for warehousing surges across the UAE, accord- ing to the Spring 2022 Dubai & Abu Dhabi Industrial Mar- kets Review report by global real estate consultancy, Knight Frank’s. Average warehousing lease rates continue to recover rapidly across Dubai, with grade A rents in Al Quoz experiencing the sharpest increase both on a quarterly and annual basis. Of the nine industrial submarkets Knight Frank tracks in Dubai, all but two have experienced rental increases so far in 2022; only Grade B rents in JAFZA (Dhs16 psf) and National Industries Park (Dhs25 psf) have held steady. Faisal Durrani, Partner – Head of Middle East Research, Knight Frank, explained: “The brisk reopening of Dubai’s economy has spurred business confidence. And it is this heightened confidence among businesses across the country that is underpinning the resurgence in warehousing demand. “In addition, to the government’s response to COVID-19, the pandemic has also driven a seemingly permanent shift in consumer shopping habits, not just in the UAE, but globally, which is fuelling demand for warehousing and distribution facilities. Indeed during 2021, excluding confidential require- ments, almost a quarter of all demand in Dubai was from 3PL and logistics operators, which totalled almost 1.6m sq ft of space.” Knight Frank also points to the change in ownership laws announced as part of a raft of economic stimulus meas- ures since the pandemic began, which include a range of new visas, designed to attract, and retain talent, as being a sig- nificant contributor to increased business confidence, activity, and demand. While the ability for international businesses to fully own and operate businesses in over 1,000 sectors outside the city’s well-established free zones without an Emirati partner has not directly translated into an exodus from free zones, it has begun to attract international manufacturers not previously present, says Knight Frank. On the investment front, Knight Frank highlights that de- mand from investors for assets is high, although challenges around lease structures are holding the market back. Andrew Love, Head of Middle East Capital Markets and Occupier Services & Commercial Agency, Knight Frank, said: “The majority of industrial properties are leased on short terms (1-3 years), which doesn’t match the requirements of institutional investors. We are now seeing this trend change, and many local and international occupiers are happy to sign longer leases with no breaks. This is being achieved using in- centives such as extended rent-free periods. “If this trend continues, we can expect a compression of yields in the industrial and logistics sector, which could slip to c.8%, from about 8.75% currently”. The picture in Abu Dhabi is more stable, with warehouse rents in the six main markets tracked by Knight Frank remain- ing unchanged so far this year. Rates in Abu Dhabi Airport Free Zone (Dhs550 psm) are still the most expensive in the city and Q1 2022 marks the seventh consecutive quarter rents here have been stable. UAE INDUSTRIAL MARKETS EXPERIENCE SURGE IN DEMAND: KNIGHT FRANK
12 | LOGISTICS NEWS ME | MAY 2022 WWW.CBNME.COM REGIONAL NEWS LNME E tihad Cargo has appointed Accelerated, Inc. and Jet Airways of the US, Inc. as its road feeder service (RFS) providers for customers in US territories. Etihad Cargo will utilise the combined expertise of the third-party trucking logistics providers to of- fer its partners seamless road connectivity, further enhancing the UAE national carrier’s operations in the United States and beyond. Etihad Cargo’s partnership with Accelerated and Jet Airways will expand the carrier’s capabilities in the USA and will en- able Etihad Cargo’s customers to benefit from various logistics solutions, including dedicated capacity and 24-hour personal- ised customer service, ensuring Etihad Cargo can continue to meet its service delivery promises in the US territories. Additionally, Etihad Cargo will employ state-of-the-art tech- nology developed to give customers complete transparency in relation to shipments, including GPS tracking and real-time shipment information. Through these strategic partnerships, Etihad Cargo will uti- lise an expanded road transportation fleet, including standard trailers, roller beds, day cabs, step decks, flatbeds, straight trucks with lift-gate capabilities, cargo vans, refrigerated ve- hicles and other specialised equipment to offer its customers the broadest range of products and transportation options. Etihad Cargo will deliver added value for its customers through the consistency in the service offered and competitive lead times for transit of both import and export freight. “Accelerated is proud to be appointed as Regional Ground Handling Trucker for Etihad Cargo. Our teams have worked behind the scenes together for many years and are now fi- nally calibrating to begin this partnership,” said Brook Miles Pearse, President of Accelerated. “The regional coverage offered by Accelerated will be an asset to the continued expansion of Etihad Cargo in the US. We look forward to working together as one team with Etihad Cargo and collaborating to develop new and exciting solu- tions for the benefit of our customers in 2022 and beyond.” Tammy Zwicki, COO of Jet Airways, said, “Jet Airways is pleased to have been chosen as Etihad Cargo’s trucking logis- tics partner in the US. We look forward to working with Etihad Cargo’s US team and general sales agents to help strengthen and build the UAE-based carrier’s business in this market. I am confident that by working together as one team, we will be able to build the best path for our shared business aspira- tions. We wish to extend our sincere thanks to Etihad Cargo for trusting us with their business.” Etihad Cargo’s Head of Cargo Operations and Delivery, Thomas Schürmann, said, “Ensuring Etihad Cargo remains the air cargo partner of choice for its customers all over the world through the delivery of world-class services remains a priority. Therefore, partnering with leading RFS providers in the US was another step in Etihad Cargo’s evolving value proposition to expand operations in this key territory. These partnerships strengthen Etihad Cargo’s RFS network in the US by connect- ing offline points with the carrier’s main gateways, including international airports in Chicago, New York and Washington, and commitment to providing the fastest and most efficient way for Etihad Cargo’s customers to deliver their cargo to its destination. ETIHAD CARGO APPOINTS ROAD FEEDER SERVICE PROVIDERS IN THE US
LOGISTICS NEWS ME | MAY 2022 | 13 REGIONAL NEWS A ramex has partnered with geolocation technology provider what3words to further improve last mile delivery process through advanced and more ac- curate addressing system. As part of the company’s plans to further im- prove the efficiency of its last mile delivery, Aramex has in- tegrated what3words into its retail application programming interface (API) platform. The integration enables regional e-commerce businesses to give their customers the option to have their packages accu- rately delivered to any what3words address across the region. It’s simple for retailers to add a what3words address field to checkout pages, allowing it to be passed on to Aramex couri- ers. The integration supports regional SMEs who are looking to optimize customer experiences and ensure accurate and efficient deliveries. UK-based, what3words has divided the globe into a grid of 3m x 3m squares and has given each square a unique combi- nation of three words, known as a “what3words address”. For example you can find the main entrance to what3words’ Head Office at ///filled.count.soap in London. This means every front door, mall entrance, delivery point, and even unmarked roads will have its own unique address, helping to minimize address errors and enabling Aramex couriers to pick up and drop off packages with enhanced accuracy and efficiency, optimizing the delivery process and providing a smoother customer experience. Alaa Saoudi, Chief Operating Officer – Express at Ara- mex, said: “Aramex has been working closely with what- 3words since 2016 to optimize the crucial last mile of the delivery journey. In our efforts to help improve last mile delivery, we believe that by using what3words we will further enhance customer experience and enable a more frictionless delivery journey. “Our longstanding partnership with what3words is a perfect example of our commitment to apply innova- tive technological solutions to boost efficiencies and enhance customer satisfaction, as well as support the further development and growth of eCommerce in the region.” Chris Sheldrick, Co-founder and CEO of what3words, said: “Using a what3words address makes it easy for people to say exactly where they want their packages, whether that is a specific building entrance, front door or side door, providing a seamless delivery experience for end customers and streamlining operations for couri- ers and retailers alike.” what3words is revolutionising the way the world talks about location. It allows users, including Aramex couri- ers and customers, to find, share and navigate to precise locations, anywhere in the world and the technology is available in 50 languages, including Arabic. Aramex also continues to leverage on its digitally enabled solutions including Aramex Fleet and Aramex Spot. ARAMEX TO USE WHAT3WORDS TO ENHANCE LAST MILE DELIVERY
14 | LOGISTICS NEWS ME | MAY 2022 WWW.CBNME.COM REGIONAL NEWS LNME A D Ports Group announced that its feeder service, SA- FEEN Feeders, signed a long-term trade facilitation and shipping agreement with Saif Powertec Limited, a listed firm in Bangladesh that is active in ports, logistics, civil engineering, and power sectors. Under the terms of the agreement, the two companies will work closely together to facilitate trade and cargo services from Fujairah to Bangladesh over a period of 15 years. As part of the collaboration, SAFEEN Feeders is expected to provide eight Supramax bulk carriers with 55,000 Deadweight Tonnage (DWT) capacity to Saif Powertec. In addition to facilitating the move- ment of general cargo and dry bulk cargo between Fujairah Port in the UAE to port facilities in Chattogram and Mongla in Bangladesh, the new bulk shipping offering will also oversee car- go operations to the Indian subconti- nent, South-East Asia, and other global destinations. Captain Maktoum Al Houqani, Chief Executive Officer – Maritime Cluster, AD Ports Group, said: “Our newest col- laboration with Saif Powertec not only introduces a new offering for custom- ers that is a fast and low-cost service for their dry bulk shipping needs, but will also have a tremendous impact on maritime trade across our combined spheres of influence. “Leveraging SAFEEN Feeders’ ex- pertise as a leading maritime service provider, as well as the advanced capa- bilities of its modernised fleet, Saif is well-positioned to accelerate the trade of dry construction materials between the UAE and Bangladesh, along with other dry cargo goods to key markets across the region and beyond.” Captain Ammar Mubarak Al Shaiba, CEO SAFEEN Feeders and Acting CEO of Ports Operating Company at AD Ports Group, said: “The announcement marks not only the official start of a new collaboration between AD Ports Group and one of Bangladesh’s leading logis- tics service providers, but also heralds a new era of maritime trade facilitation between our two proud nations and their respective ports. “In addition to boosting trade be- tween the UAE and Bangladesh, the collaboration with Saif Powertec brings a new opportunity to deliver an en- hanced cargo service to customers across the Indian subcontinent, South- East Asia, as well as other high-profile global destinations.” Tarafder MD Ruhul Amin, Managing Director of Saif Powertec, said: “We are pleased to announce the start of our close partnership with AD Ports Group’s SAFEEN Feeders, which has greatly en- hanced our capabilities as Bangladesh’s sole terminal operator to facilitate the movement of dry cargo at the interna- tional level. “Boasting a capacity of 55,000 DWT, SAFEEN Feeders’ bulk carriers, which will be offered on a bareboat or time charter basis, are expected to realise significant returns and deliver real ben- efits for our customers.” Both companies will jointly own and operate bulk shipping services that will promote maritime trade between the MENA region and Asian Subcontinent. Other areas of potential collaboration involving Saif Powertec include the leasing of berths and potentially jet- ties to develop and improve the cargo operations, along with the adoption of warehouse storage solutions offered by AD Ports Group. The scope of the agreement also covers future areas of collaboration to jointly develop and invest in the maritime infrastructure and projects of Bangladesh and the UAE. Launched in 2020, SAFEEN Feed- ers was created to serve as AD Ports Group’s container feeder service provider with the goal of enhancing national and regional trade through the provision of vital connectivity across the Arabian Gulf and the Indian Subconti- nent’s container distribution network. SAFEEN FEEDERS INKS DEAL WITH SAIF POWERTEC FOR FUJAIRAH – BANGLADESH CARGO SERVICES
LOGISTICS NEWS ME | MAY 2022 | 15 REGIONAL NEWS d nata inaugurated a new, state-of-the-art cargo cen- tre at London Heathrow airport (LHR). Part of the company’s ‘dnata City East’ complex, the bespoke facility increases dnata’s capacity at LHR, ensuring continued smooth handling of a broad range of goods amid rapidly increasing demand for reliable and safe air cargo services in the UK. The ground services provider’s expansion makes dnata City East comfortably the largest off-site cargo handling operation at the UK’s largest commercial aviation hub. The new, 10,500 m² facility (Phase II) was designed to oper- ate in conjunction with dnata City East’s existing 22,500 m² facility (Phase I) which opened in September 2019. dnata will handle all air freight of Virgin Atlantic Cargo and Delta Cargo at dnata City East. Exports will remain at dnata’s Phase I facility while the new Phase II facility will cater for all imports, offering the airlines significantly increased handling capacity. Located immediately south of LHR, both dnata City East fa- cilities were specifically designed to accommodate the opera- tional requirements of dnata and the two airlines. They incorporate the latest carbon reduction initiatives in design and operation, including the use of solar PV panels, air-source heat pumps and electric vehicle charging. dnata City East has already achieved a BREEAM ‘Excellent’ environ- mental rating for its design stage, with the same status also expected to be achieved for the construction process. Including dnata City East, dnata now offers cargo services from eight facilities at LHR with a team of over 750 highly trained employees, all of which bringing high-end cargo han- dling infrastructure and services for over 30 international air- lines at one of the world’s leading cargo destinations. In 2021 dnata handled more than 500,000 tonnes of cargo in London. Alex Doisneau, Managing Director of dnata UK (Airport Operations), said: “We are excited to announce the comple- tion of dnata City East, a truly world-class facility. Our newest cargo complex offers bespoke solutions, industry-leading technology and enhanced cargo capacity supporting our customers in achieving sustainable growth at the UK’s busiest airport. “We thank Virgin Atlantic Cargo and Delta Cargo for their support, loyalty, and trust in our services. We continue to go the extra mile to consistently provide the highest level of ser- vice and safety across our operations, every day.” In recent years dnata has significantly invested in advanced infrastructure, equipment, and latest technologies, cementing its position as a leading air cargo services provider in the UK. In addition to its expansion at LHR with its fifth greenfield build, the company’s recent investment includes the opening of dnata City North, a new cargo complex at Manchester Air- port (MAN). The on-airport facility includes 11,500 m² ware- house space and is capable of processing more than 150,000 tons of cargo a year. Having added seven facilities, including six new builds, to its infrastructure over the past eight years, dnata now operates 13 cargo centres at six airports in the UK. The company can handle more than 800,000 tons of cargo annually across the country. DNATA EXPANDS LONDON HEATHROW OPERATIONS WITH NEW CARGO FACILITY
16 | LOGISTICS NEWS ME | MAY 2022 WWW.CBNME.COM INDUSTRY LOGISTICS LNME I f only getting stuff from A to B was as simple as it sounds. Delivering drill rigs and their spare parts to some of the most remote locations on earth has never been easy. But add in a global shortage of key components, bottlenecks in transpor tation, COVID-19, soaring material prices and a software upgrade at a key distribution centre that went awry, and it’s a wonder that Robert Van der Waal can get any sleep at night. Van der Waal is the still-new Vice President of Logistics at Parts & Ser vices Division within Sandvik Mining and Rock Solutions. His job is to make sense of all the madness in the logistics sector and ensure that customers get the parts they need, where and when they need them. Luckily, Van der Waal’s resumé includes a long spell at DHL, and for the last dozen years he’s been a senior executive at Samsung – both compa nies that know a thing or two about efficient supply chains. “In 20 years I’ve never seen anything like it, the whole world of logistics has been turned upside down. We just need to figure out how best to operate in this new dynamic,” says the reassur ingly calm Van der Waal. “Some of the problems are out of our hands, but others we brought on our selves – like a necessary – but challeng ing – introduction of a new warehouse management system at our central distribution center in Eindhoven, Netherlands, where the majority of our parts are stocked. “Our customers were undoubtedly inconvenienced, but thankfully have been remarkably understanding. Now that we are back on track, we can reshape our supply chain to suit the new environment, with the support of up-to-date systems.” Port bottlenecks This is already happening, with the Eindhoven facility now pushing out A CHALLENGING NEW ERA IN PARTS DISTRIBUTION Wondered how logistics for a mining equipment company works? Robert Van der Waal explains how getting parts where they need to be has never been more demanding Julian Maynard, Managing Director, Maynard Design
LOGISTICS NEWS ME | MAY 2022 | 17 A CHALLENGING NEW ERA IN PARTS DISTRIBUTION 40% more volume than before the system upgrade. Even products stuck in ports such as California’s Long Beach and China’s Yantian are slowly moving through the supply chain. Geopoli tics also is causing head aches, such as Mali closing its borders after the recent military takeover, mean ing mines can’t be supplied via standard routes. And COVID-19 rules continue to change as the pandemic evolves. “You only need to see a delay in supplying parts to realise just how important they are to customers,” says Van der Waal. “They need spare parts to keep operating their mines – and it’s a pain you can’t ignore. So, we have changed our shipping methods. In the past we sent 40% by air, 40% by sea and 20% by road – now as much as 70% of parts are being flown in. This is faster but the costs are enormous. But we have no choice – it’s a price worth paying to keep customers satisfied.” Delay and costs rise It’s not just the cost of freight that is going up, eve rything seems to be – from simple screws and bolts, to the wood used for packag ing. Ocean freight prices in particular have skyrock eted – a shortage of ships means that container prices have shot up, from roughly USD2,000 a container a few years ago to as much as USD18,000 today. Sandvik is absorbing much of these increases, but the pressure on costs is intense. That said, there are some problems that even money can’t fix. The global short age of semi-conductors is hitting electronic component suppliers, causing delays for the whole industry, and this is unlikely to ease any time soon, believes Van der Waal. So, what does all this mean in terms of delivery schedules? “I think the ball- park figure is that things now take twice as long as before,” says Van der Waal. “Even express courier ser vices that used to be guar anteed next day delivery can now take two days.” But does this mean the end of just-in-time logistics? “Not necessarily,” he says. “We just need to adjust our supply chain so that we are still there with the right product at the right time for the customer. Where historically a sup ply chain was built around efficiency, the disruptions due to the pandemic and new market dynamics makes companies, including Sandvik, transform their supply structures to make them much more robust. Ones that are better able to handle disruptions and unexpected disturbances.” Back to basics: key to suc cess New technology and pro cesses undoubtedly have a role to play in ensuring Sandvik’s parts and equip ment get to where they are needed. But rather than take big leaps of faith in new technologies (such as arti ficial intelligence), Van der Waal is counselling caution, and a more ‘back to basics’ approach. He counsels the use of the philosophy that it’s better to take one step backward in the short term in order to take two steps forward in the future. “This last year has shown us – painfully – what hap pens when we lose control of our processes,” he says. “We have to get the old- school basics of logistics right first, have good rela tionships with our suppliers and put robust contingency plans in place if situations change unexpectedly. “New technology is going to play an important part in our future success, but we will only take steps we know we can manage – no more leaps of faith in IT. Getting parts to our custom ers on time is too important a priority to take risks with.” “In 20 years I’ve never seen anything like it, the whole world of logistics has been turned upside down. We just need to figure out how best to operate in this new dynamic.”
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20 | LOGISTICS NEWS ME | MAY 2022 WWW.CBNME.COM YOU SHOULD KNOW ABOUT LOGISTICS SOFTWARE SOLUTION PROVIDERS In this special feature, we shine the torch on software solution providers in the logistics industry who are raising the bar with innovative, advanced, and optimised solutions to improve accuracy, minimise costs and increase transparency SPECIAL REPORT LNME Disclaimer: In no specific order 20 | LOGISTICS NEWS ME | MAY 2022 WWW.CBNME.COM
LOGISTICS NEWS ME | MAY 2022 | 21 LOGISTICS SOFTWARE SOLUTION PROVIDERS T he past two years have been challenging yet fulfilling for Lyve, the UAE-based logistics solutions and technology provider. The company offers a diverse portfolio of logistics, eCommerce, and business solutions. From big data to multi-vertical service agents, and instant activation to scalable capacity, Lyve goes beyond what’s typically considered delivery. The company was founded with a vision to reimagine logistics as an enabler of digital transformation and business innovation. The company rebranded itself from being purely a last-mile delivery platform to offer a plethora of other logistics solutions in August 2020. The rebranding mirrored its ushering into a new era of digital growth and development. Lyve invested its resources and manpower in technology, believing that the success of last-mile logistics lies at the core of digitisation. Through the continuous improvement of its software and the diversification of its products, Lyve branched out into new verticals such as courier, pharmaceuticals, telecom, and eCommerce – acquiring prominent clients while also penetrating new markets such as Kuwait, Saudi Arabia, Egypt, and India. Since then, the company has seen an exponential growth both in revenue and in workforce. Wadih Mattar says: “Technology has helped increase real-time visibility in logistics and in the supply chain. It has increased agility, giving businesses the ability to take the right action at the right time. “In the future, we will achieve complete automation in fulfilment centres and autonomous vehicles in logistics. Through big data analytics, business will have the ability to pinpoint operational inefficiencies and will be able to resolve them. Machine learning and AI will further streamline the processes.” Adding further, he noted: “Through our technology products, we improve visibility, agility and give businesses full control over their fleet and operations in general. Through data, businesses can get valuable insight into their operations and can optimise to increase efficiency and cut costs. “Our vision is our key differentiator. We are building an ecosystem beyond logistics and fulfilment. We are harnessing technology to have presence in and enhance digital transactions beyond the logistics and supply chain industry.” Wadih Mattar, Head of eCommerce Lyve
22 | LOGISTICS NEWS ME | MAY 2022 WWW.CBNME.COM SPECIAL REPORT LNME H aving an online purchase delivered in the real world is an experience that touches just about every single person on the internet, more than 4.5 billion people, says Vladimir Nesterov. “Businesses that not only sell a great product online, but then get it to its destination, will reap enormous rewards in the near term and are likely to keep doing so for the long term.” RouteQ is a plug-and-play AI-powered software solution that makes it possible to effortlessly level-up delivery operations. It lets users sustainably manage their fleets while increasing customer satisfaction and making more money at the same time. RouteQ’s value lies in traffic data, which is harnessed to precisely estimate delivery arrivals while making 99% of deliveries on time (and delivering 30% more orders with the same-sized fleet). The software offers a level of transparency into the delivery process that hasn’t been seen before — everyone from customer service to the delivery person to the customers themselves has a clear window into the entire delivery process and can easily communicate with each other there. Nesterov adds: “When it comes to the last mile, the best-in-class technology can make a huge difference. In the low margin eGrocery business for example, last mile operations can account for as much as 25% of a total cost per order. Automated delivery routing and investment in supply chain transparency can significantly reduce fleet mileage, improve resource management, increase customer loyalty, and directly affect P&L.” For this reason, RouteQ offers two major services: automatic route planning and improved courier monitoring and communication. Automatic route planning system rapidly finds the best routes for companies with lots of orders across a variety of logistics scenarios. Nesterov adds: “It uses historical traffic data and precise arrival time estimation to optimise these routes. It can formulate routes while accounting for various conditions like freight dimensions, transport capacity, acceptable delivery time margins, the throughput of warehouses, and beyond.” While a courier monitoring system facilitates enhanced communication between drivers, logistics officers, and customers. It consists of three components: an app for employees on the road, a logistics workstation, and a client widget. “This service brings more transparency to the delivery process, letting cargo movement be viewed in real time for more readily eliminating discrepancies,” he states. Sharing his views on the future of technology in logistics, he says: “We are approaching a time when companies will have to prioritise supply resilience over just-in-time delivery, and some might even reconceive their entire logistics strategy around this. Flexibility and adaptability are the major trends for future logistics.” He concludes: “For many delivery- dependent businesses, changing out their software tools will be the first step toward capturing such adaptability. Software that intelligently manages a delivery fleet, whatever size that fleet may be, offers the ability to balance between logistics efficiency and the level of customer service being offered.” Vladimir Nesterov, General Manager RouteQ ME “AUTOMATED DELIVERY ROUTING AND INVESTMENT IN SUPPLY CHAIN TRANSPARENCY CAN SIGNIFICANTLY REDUCE FLEET MILEAGE, IMPROVE RESOURCE MANAGEMENT, INCREASE CUSTOMER LOYALTY, AND DIRECTLY AFFECT P&L.”
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24 | LOGISTICS NEWS ME | MAY 2022 WWW.CBNME.COM SPECIAL REPORT LNME D igital transformation is now the centre of the logistics industry. “We are at a stage in the industry evolution, where without the right digital impetus, we may not endure the haul. The future belongs to technology. New age technologies like blockchain, AI/ML, IoT, mobile apps, robotics, and big data will shape logistics and cargo movement in the future,” says Nagarjun Peri. As far as technology adoption in the logistics industry is concerned, there is going to be a significant jump, believes Peri. “This is because every other stakeholder is now realising what technology can offer. Right from achieving sustainability in overall operations to automating and performing mundane activities with perfection, the future looks digitised.” In the air cargo space, airports are keen on deploying cargo community systems and other point solutions to achieve scalability. He adds: “In some years, mobile and wearable applications might find significant relevance. Also, digital freight corridors connecting two or more airports for seamless data interchange will also take place. “In maritime, we see a significant rise in adoption of community solutions. Port authorities worldwide are making it now mandatory to digitise and automate their operations to promote paperless trade.” Kale began operations 11 years ago with a vision to empower and integrate stakeholders of the logistics value chain with a ‘technology that transforms’. Kale is a flag-bearer of digitisation and paperless trade in the logistics industry with initiatives like the world’s most comprehensive cargo community systems for both air (Airport Cargo Community System) and maritime (Port Community System). It has extended its portfolio to offer regulatory single window, digital trade and freight corridor, logistics eMarketplace and bureau services for administrative facilities. He adds: “Kale offers a comprehensive product portfolio for multi-modal logistics which are unmatched. As a neutral entity we have been pioneers in introducing some the industry first solutions like Next-Gen Cargo Community Systems, Logistics eMarketplace, blockchain based digital trade corridors and point solutions like e-AWB which is enabled by Machine Learning. “The unparalleled domain expertise we bring to table is unique. With innovation and customer centricity at the heart of our business model we have gone beyond mere products to enable trade facilitation and empower the stakeholder in the logistics value chain to accelerate global trade.” Having said that there are players in the market reluctant to digitise their operations. Peri reveals. “Making the logistics fraternity aware of the value of digitization is the most critical part. In several regions, many are still reluctant due to various reasons. In Middle East especially, stakeholders believe that digitisation incurs extra costs, and they need to setup a separate infrastructure for the same. However, not many understand that the tech solutions do not require a separate infrastructure cost.” Kale Logistics Solutions Nagarjun Peri, General Manager
I oT and cloud-based solutions are major contributors to various business verticals, including logistics, helping them achieve better results by providing data-driven visibility and control of assets, equipment, process gaps, energy insights, real-time reporting, etc. IoT provides data from physical assets such as storage facilities’ HVAC status and energy consumption distributed worldwide. Asset data is made available in real-time and at low costs in a central location. “Once data is available, multiple analytics can be carried out to create new use cases and enhance SOPs (Sequence of Operations),” notes Dustine Stanley. Advancement in cloud computing and IoT solutions has enabled remote connectivity of facilities, allowing for wider visibility, high-level data analytics, minimised latency, proactive approach, and many such capabilities, leading to energy-efficient operations. He adds: “Today’s digital transformation has helped reduce thSe cost of operations and energy consumption considerably. There are case studies across global portfolios that have achieved exponential energy savings. Many real estate owners and facility management companies can maintain sustainable and energy-efficient facilities by leveraging the capabilities of digital transformation through IoT-enabled BMS.” Netix is one such IoT & AI-based automation solution provider that leverages its innovative strategies, analytic algorithms, and brand-agnostic solutions to transform facilities into safe and sustainable edifices. Dustine says: “Our vision is to create an ecosystem where building owners and the facility team are enabled with the support, technology, and information to make informed decisions based on AI-powered data-driven insights.” One of its key solutions is Netix Konnect, which is a full- featured, cloud-based asset and energy management software for reducing risk and downtime, optimising cost, time, and energy across buildings and cities. He reveals: “The AI-powered platform is designed to increase the efficiency, sustainability, and reliability of building spaces and convert ageing facilities into smart spaces, as well as help design new smart and sustainable buildings and cities.” The platform uses pre-configured, condition-based algorithms, AI/ML analytics, fault detection, and diagnostics to do equipment analysis of connected assets and property spaces to identify alerts and causes. It performs real-time auto-diagnostics and provides insights into energy use across the property or properties. This allows machines to recognise deviations from standard operating procedures and perform writebacks without human intervention. The addition of machine learning algorithms and AI-based outputs provides the space/property managers with the ability to perform predictive and energy-focused maintenance for assets, which is much more efficient and cost-effective compared to the traditional preventive or corrective approach. The proven versatility and scalability of the modular design make the solution stand out with real-time analytics, improving operations and maintenance, thereby offering the best standards. He concludes: “Netix Konnect reorganises maintenance operations with our end-to-end asset management suites, designed to increase efficiency and improve service and productivity.” Dustine Stanley, Director Netix Controls LOGISTICS SOFTWARE SOLUTION PROVIDERS
26 | LOGISTICS NEWS ME | MAY 2022 WWW.CBNME.COM SPECIAL REPORT LNME T his year, 2022, marks a landmark year for Swisslog, a provider of automated intralogistics technologies and integrator of AutoStore. The company now has 300 AutoStore projects in over 26 countries worldwide, featuring a total of more than seven million storage bins and using no less than 10,000 robots. A global company with Swiss roots and one of the world’s leading logistics automation companies, Swisslog is headquartered in Buchs/Aarau, Switzerland and stands for innovation, quality, industry-leading software, and robotics technologies developed in- house. Swisslog delivers data-driven and robotic solutions for logistics automation alongside reliable, modular service concepts. Collaborating with forward-thinking companies, Swisslog is committed to setting new standards in warehouse automation to provide future-proof products and solutions. Its range of services includes consulting, concept studies, project implementation, customer service, cutting-edge technologies, and software. David Dronfield says: “The future of warehouse is automation, and there is a huge opportunity for increased growth. Swisslog’s proven innovative solutions can help businesses to overcome challenges, capitalise on digital transformation and scale their business.” According to several research reports, the warehouse automation market in the Middle East is forecasted to increase from USD600 million in 2019 to over USD1 billion by 2022. Swisslog aims to capitalise on this and help businesses transform their automated warehouse operations with everything from simple standalone AutoStore projects to some of the largest and most complex installations. Swisslog customers typically achieve a return on investment (ROI) for AutoStore installations within as little as two years. In addition, they quickly accrue numerous benefits including the ability to achieve more using the same workforce, consistently higher quality standards and faster, higher throughput per employee, as well as improving working conditions and job satisfaction. In April, Swisslog announced that it developed a technology-driven operational model and fully automated, data-driven intralogistics system – featuring the AutoStore solution for Raha, the Middle East’s first pure-play, fully automated e-grocery platform. An innovative homegrown concept, Raha is the Middle East’s first pure-play, fully automated e-grocery platform - offering a full range of groceries, fresh produce, and household essentials. It also features Kuwait’s first fully automated robotics-fulfillment centre, and one of the first centres of the kind globally with a chilled warehouse capability. “The micro-fulfilment center designed for Raha is the first automated micro- fulfilment center (MFC) implemented in Kuwait, with a system designed in such a way that order capacity per day can be effectively doubled through the ease of expansion our solution provides,” Dronfield said. David Dronfield, General Manager SwisslogMiddle East
LOGISTICS NEWS ME | MAY 2022 | 27 LOGISTICS SOFTWARE SOLUTION PROVIDERS S avoye specialises in the design and integration of automated and robotic intralogistics systems, as well as supply chain execution (SCE) software solutions. Alain Kaddoum says: “We offer a full range of automated and robotised technologies, in addition to our software programmes such as WMS, TMS, Warehouse Control System (WCS), and Order Management System (OMS). Our solutions help bring about better management and performance of supply chain systems.” Savoye, a French supply chain solutions company, is relatively new in the region. It entered the UAE and Saudi Arabia in mid-2021 with the launch of a new generation, cloud native and innovative software solution for the supply chain execution: ODATiO that embeds WMS and TMS in the same application. Kaddoum believes that next-generation technologies such as artificial intelligence (AI) and robotics carry with them the power to transform and integrate complex supply chain operations. “The rollout of AI-driven warehouse management (WMS) and transport management systems (TMS) is now making a huge difference in optimising warehouse space usage, resources, and transportation route planning. AI-powered WMS and TMS also lead to seamless goods-to-person movement and improved overall productivity, among other benefits,” he says. Besides AI, Savoye also has robots that are deployed to locate, pick, and move inventory around large warehouses. They move faster than humans and increase one’s capacity to respond to demand and supply trends and reduce the risk of workplace injury. “Cloud-based systems are equally pivotal to enhancing supply chain processes while reducing cost and achieving enhanced operational scalability, reliability, and security,” he adds. Kaddoum maintains that technology will be at the centre of logistics activities now and in the future. “We will see more businesses embracing advanced tools to remain relevant in this digital age and be in sync with the Middle East region’s steady transition to a digital world. Technology also plays a role in preparing the supply chain and logistics groups to maintain business workflow and survive in times of global crisis.” The company has plans to increase the region’s awareness of its technologies and offer tailor-made solutions to logistics and supply chain firms. “With consistent efforts, we have been succeeding in firmly building good business connections and collaborating with the right partners to increase not only the awareness of our stakeholders but also our market shares according to our business growth strategy,” he reveals. Concluding, he says: “To carve a niche in the market, we continue to leverage our 35 years of global experience in the design and implementation of automated intralogistics solutions. One year after the opening of our UAE office, we have already established ourselves as a significant player in the regional supply chain sector. This demonstrates the growing regional demand for our technologies, including ODATiO. We introduced ODATiO at a time when the concept was still not popular in the market. Now, this technology is gaining traction in the industry.” Alain Kaddoum, Managing Director, Savoye Middle East Savoye
28 | LOGISTICS NEWS ME | MAY 2022 WWW.CBNME.COM SPECIAL REPORT LNME M anual operations, guesswork, poor visibility, and lack of control over financial operations, among many other challenges, have been weighing down supply chain operations for decades. But since the last six years or so, with the inception of advanced technologies, the supply chain industry has been witnessing improvements like never before,” explains Soham Chokshi. Disruptive technologies like AI and machine learning, predictive intelligence, intelligent data analytics, blockchain, automation, IoT, and others empower supply chain stakeholders to achieve high levels of logistics excellence. The future looks bright for the logistics sector in terms of technology, suggests Chokshi. “There is immense scope of technology adoption in the logistics sector. There are decades worth of challenges and inefficiencies that need to be addressed, and without technology, it’s impossible to achieve this goal.” He asserts that close to 70% of businesses do not have complete visibility of their supply chain operations. “Last-mile delivery services account for 41% of the global supply chain costs. A survey highlighted that only 5% of supply chain professionals say that their order fulfilment processes are automated. We can go on citing such instances. But to work on these numbers, businesses will need to leverage smart logistics management platforms powered by the technologies mentioned above.” He adds: “Making logistics operations sustainable is another critical reason why the logistics industry will witness rapid technology across cross-border, middle- mile and last-mile operations.” Shipsy is capitalising on this with its AI-powered platform that enables global businesses to optimise, automate, track, and simplify end-to-end logistics and supply chain operations. It also has a dedicated export-import solution that allows businesses and logistics providers to optimize cross- border logistics operations, enhance intermodal transportation visibility, automate customs processes, simplify and automate rate procurement, and much more. Chokshi believes that Shipsy’s unique offerings is what makes his business stand out. “We help enterprises drive seamless collaboration with shippers, freight forwarders and CHAs to manage freight procurement (rates, vendor negotiations), shipment documentation, shipment tracking, invoice reconciliations and more, all on a single platform.” For the retail sector, its platform has a “proven record of drastically reducing customer complaints and returns with a unified interface across multiple third-party logistics companies with automated 3PL selections to reduce manual interventions.” Shipsy helps businesses gain real-time visibility into SKU movements and inventory levels using predictive control towers and ensure on-time deliveries at lower costs with intelligent route planning and optimisation algorithms. Shipsy Soham Chokshi, Chief Executive Officer
LOGISTICS NEWS ME | MAY 2022 | 29 LOGISTICS SOFTWARE SOLUTION PROVIDERS S upply chains and logistics operations have a major impact on the daily life of individuals and businesses. New technological solutions help companies to adapt to the market needs, streamline their process, and as a result, increase customer satisfaction. Newer technology creates a competitive advantage for winning a market share and overplaying competitors,” Carolin-Carmen Neubauer says. Neubauer’s opinion is back by a McKinsey report which discloses that 90% of large enterprises plan to increase supply chain resilience, and only 11% face budget constraints. This really impacts momentum for technologies of all kinds and especially robotic process automation for a supply chain that can be used for a fragmented market. She further states that logistics and distribution players have realised the importance of keeping pace with technological innovations. Neubauer’s firm Fero.ai provides automation to logistics, freight, and supply chain business transactions via robotic process automation solutions. TiA (transport interactive assistant) is an interactive part of Fero.Ai’s solution. It acts as a personalised assistant that can communicate with users via voice messages and mimic multiple roles in sales, pricing, customer service, and operations department. “TiA offers results in an increase in efficiency by more than 25%, reduction of manual coordination, minimisation of errors to zero, and, therefore, increased customer satisfaction. So far, our customers have trusted us with over USD50 million worth of business transactions,” she says. While many companies are eager to automate their operations, few are still apprehensive. “One of the main challenges in the market today is that some companies’ views of their markets, economic environment, and social conditions prevent them from following digital transformation automation,” she notes. “As the technology leaders, we aim to educate industry professionals from the logistics and supply chain sectors about the importance of implementing innovative solutions and their value,” Neubauer adds. “As a reward, we can see how the optimised operation of our clients has a direct impact on their end customers.” She believes that visibility and communication between internal and external parties are critical. “Albeit very difficult, as shippers, transporters, and freight forwarders use various transport management and delivery management systems, but it’s important.” Carolin-Carmen Neubauer, COO, Deputy CEO and Co-Founder Fero.Ai LOGISTICS NEWS ME | MAY 2022 | 29
30 | LOGISTICS NEWS ME | MAY 2022 WWW.CBNME.COM SPECIAL REPORT LNME F adi Ramahi is also of the opinion that artificial intelligence (AI) and big data analytics play an important role in automated decision- making processes as they support human decisions in forecasting demand, providing transparency to the supply chain, providing equipment maintenance prediction, and making strategic decisions. He says: “Increasing technological innovations are making big waves across industries, and logistics and fulfilment are one of the most impacted sectors. It has resulted in increasing productivity, minimising costs, and errors, and providing reliable and faster services. “Additionally, innovation provides accurate information, enhances responsiveness in the event of fluctuations in demand, guarantees easier coordination of supply with demand, and improves flexibility in the face of changes in the market and customer needs while reducing lead times. The adoption of technologies within logistics caught the interest of many, including Fulfillment Bridge, particularly with the digitisation of manufacturing, marketing, transportation, and warehousing processes based on interconnectivity and integration technologies.” Ramahi believes that the future of logistics will be defined by data examined and analysed by artificial intelligence and driven by machines and robots. He says: “It is impressive to see how far logistics as an industry is utilising evolving technologies, today the use of self-driving or autonomous vehicles for delivery is no longer just a vision but a reality.” Founded in Tunisia, Fulfillment Bridge is a global end-to-end logistics service provider that offers comprehensive cross border logistics services such as warehousing and inventory management, last mile delivery, COD collection, returns management, API Integration with many platforms, IOR (importer of record) services and fulfilment consultancy. He notes: “Our company encapsulates teams with varied backgrounds, spread across the globe specialised in eCommerce, logistics, and technology. As of today, Fulfillment Bridge operates in 17 countries, has 24 warehouse facilities, and employs over 200 couriers.” Fulfillment Bridge has been working extensively on building a solution that facilitates trade from and to the Middle East and Africa (MEA) region. He reveals: The MEA Bridge emerged as an all-encompassing solution for merchants aiming to upscale their game in the Middle East. “We enable sellers in the UAE to expand in the Saudi market without any company registration required, hence sparing the legalities hassle. Next-day delivery from the UAE to Saudi is also one of the solution’s highlights, ensuring an optimal customer retention rate.” He adds: “Additionally, we offer direct B2C lines from China to the UAE and Saudi Arabia, from China to different countries in the region. In a nutshell, our solution in the MEA includes and is not only limited to providing FBM support, overseeing warehousing operations, managing IOR, and ensuring 3-day-delivery within the GCC.” Fadi Ramahi, Chief Business Growth Officer Fulfillment Bridge
LOGISTICS NEWS ME | MAY 2022 | 31 LOGISTICS SOFTWARE SOLUTION PROVIDERS B usiness-to-business and distribution businesses need to support their customers with route- to-market services including pre-booked deliveries, van sales, and field sales. Supporting such organisation models can become complicated, says Vaibhav Mittal. Besides the regular delivery and sales operations managed by office and depot teams, the mobile teams - drivers, reps, merchandisers - all need access to the same information. He adds: “When away from the office they need the autonomy to manage deliveries and sales but at the same time having access to customer records and pricing and work within the business rules you set for, returns, expiry dates, multiple delivery points, credit control, photos, and much more.” SME business owners having to navigate through all this complexity using pen-paper-based processes, find their business is less efficient, has high overheads and every process needs constant checks and validations. Mitthal notes: “Operating in this way makes managing the field workforce a nightmare - every day, business owners worry their drivers don’t follow company procedures, that service- level agreements are missed, and once a profitable business becomes less so. They end up controlling their business through micromanagement, but things keep falling through the cracks and they spend most of their time firefighting.” The obvious solution is technology, but the IT solutions the companies look at are not adequate, rigid, far too complicated, expensive, and involve a lot of risk due to the implementation cycle. Here’s where Data Insights come into play. It helps customers successfully digitise their distribution businesses managing their entire sale to cash cycle. So far it has supported more than 110 companies and boosted their sales by about 14%. He adds: “With our system deployed to over 2,500 mobile users and hundreds of office staff every day, owners have been given the control and peace of mind that their business is being run as they want, and they have the time to work on strategic initiatives that can allow them to grow profitably.” Vaibhav Mittal, CEO Data Insights
32 | LOGISTICS NEWS ME | MAY 2022 WWW.CBNME.COM COVER STORY LNME German logistics services company Hellmann Worldwide Logistics has made great inroads in the region in the past two years. We speak to Madhav Kurup, CEO for Middle East, North Africa, and South Asia on the firm’s success in the region PURSUING PROGRESS
LOGISTICS NEWS ME | MAY 2022 | 33 PURSUING PROGRESS | MADHAV KURUP H ellmann Worldwide Logistics has been riding a positive wave for the past decade in the region, however in the last two years the logistics company is undergoing a major transformation with eCommerce and digitalisation at the centre. Last year, Hellmann established a firm footing in sea and air solutions and boosted its warehousing footprint across the globe offering services to specialised sectors such as healthcare, automotive, fashion, FMCG, industrial chemi cals, and oil and gas. Madhav says: “We are happy with the growth in our business in 2021 and so far in 2022 with a clear focus on ensuring positive employee and customer retention. Our new operations in Egypt and Oman have also started very well and we are humbled to have a professional and experienced team of more than 1,900 personnel covering all areas in the region.” The countries Madhav manages include Egypt, Saudi Arabia, Kuwait, UAE, Oman, Pakistan, India, Bangladesh, and Sri Lanka, and it his endeavour to establish Hellmann as not just a comprehensive logistics solutions provider with industry specialisation, but truly an employer of choice and strategic partner for Hellmann customers in the region. Regional expansion With Hellmann’s recently expanded in Egypt and Oman, he tells us about the potential the firm sees in these countries. “The process of setting up the company in these markets started in mid-2020 with a dedicated interdisciplinary team working on creating operating processes and systems using our globally standardised practices,” Madhav explains. “Now, in both countries, all systems are fully implemented, processes are in place, and we are fortunate to have attracted the best talents in the market. Our team is roaring to go and establish ourselves as a preferred service partner in the market.” Within Oman, Hellmann has so far opened offices in Muscat and Sohar, and for Egypt in Cairo, Ain Sokhna and Alexandria with full customs brokerage solutions. >>>
34 | LOGISTICS NEWS ME | MAY 2022 WWW.CBNME.COM He adds: “Frankly, we were cautious in our first-year planning for these new countries, however, the positive leadership of both the countries and supporting functions from the re gional office in Dubai has allowed us to perform beyond our expectations. We are pleased with the accomplish ments of our people following which our performance in 2021 has been very positive.” “Our people, our industry solutions and integrated visibil ity systems, and most importantly our customers who partner with Hellmann are creating value in their supply chains. Opening in Oman and in Egypt has greatly strengthens our regional solutions for our custom ers.” End-to-end warehousing solutions The company is also focused on expanding its warehousing solutions across the region. It now has more than 3 million sqft of warehousing space in the Middle East and South Asia. He notes: “Our core focus revolves on ensuring true customer values and added solutions are pursued in all products across our warehousing offering. We aim to create specific niche solutions around the verticals of healthcare, automotive, fashion, FMCG, and the industrial chemicals industry.” The company is catering industry- focussed solutions such as qual ity control within fashion, fully compliant good storage practices in healthcare, as well as automotive air bag, dangerous goods, and highly inflammable chemical storage solu tions. The company boasts licensed and approved facilities that can be adopted to suit the needs of various industries. COVER STORY LNME “AT HELLMANN, WE AIM TO OFFER COMPLETE ECOMMERCE SOLUTIONS. WE ARE DEEPLY INVOLVED IN OUR CUSTOMERS’ BUSINESS PLANS AND HELP THEM ACHIEVE THEIR GOALS.”
LOGISTICS NEWS ME | MAY 2022 | 35 Madhav reveals: “We’re leveraging the adoption of special warehouse design solutions that cater to a range of indus try specific demands. This is truly an advantage to boast of, as we also have great teams working closely together with a high focus on customer solutions that possess tried and tested results, and these solutions can be leveraged to support our new customers. Our continuous improve ment programmes persist to excite us year-after-year with great concepts that support us in truly improving our existing customers supply chains.” eCommerce offerings Along with providing warehousing solu tions to specialised industries, Hellmann is expanding its eCommerce storage offerings, especially since the pandemic as demand across several business verticals have moved from instore buying to online shopping. To cope with the eCommerce boom and increase in demand for warehousing and fulfilment services, Hellmann got into a strategic partnership with Dubai Com merCity to manage and operate a shared, multi-client warehouse within the logistics cluster of the eCommerce free zone. This has created a go-to hub for businesses looking to start their eCommerce journey. “Online orders are now higher than we envisioned prior to the pandemic. Through our strategic partnership with Dubai CommerCity and DHL Express, we provide one-stop-solution for all our customers. The collaboration has created solutions to provide a seamless experience in customer onboarding and introduce new solutions that add value to the cus tomers’ business,” Madhav notes. He adds: “At Hellmann, we aim to offer complete eCommerce solutions. We are deeply involved in our customers’ business plans and help them achieve their goals. We have the aptitude to take on the digital journey. Our journey with eCommerce started 10 years ago which helps us to understand the whole value chain.” Thanks to the eCommerce surge, mul tiple sectors have seen an agile growth in business. Hellmann has witnessed a growth in business from the health and safety industry. “These products are be ing purchased far faster than they can be PURSUING PROGRESS | MADHAV KURUP >>>
36 | LOGISTICS NEWS ME | MAY 2022 WWW.CBNME.COM produced and restocked,” he shares. “We’ve also seen an impressive demand in the sports and fitness sector, as people are choosing to exercise at home. Exter nal fitness options are no longer the only choice. Few other thriving sectors are shelf-stable goods, food and beverage, and last but not least fashion. There is an increase in eCommerce sites that cater to these sectors,” he discloses. “We aim to provide end-to-end ware housing and fulfilment services including solutions such as order management systems, streamlined customs clear ance processes and premium last-mile service.” Digitalisation and enhanced offerings To facilitate these offerings and enable transparency, Hellmann is champion ing digitalisation across its business in the region. Madhav shares: “Within the region we created new systems tools to support customer visibility with our ‘smart’ solutions and developed a specialised customs brokerage software which minimises risk and improves speed in data entry into the various customs systems in the region whilst ensuring the highest data quality.” He adds: “Technology changes and shapes our world not just every decade, but every year we see increased capabili ties for greater enhancements to be more proactive and support our customers with exception monitoring, state-of-the-art infrastructure, and additional streamlined business approaches. We have globally in creased resources in our digital teams for new tools that will benefit our customers and employees.” In 2021, Hellmann revamped its global transportation management system across the globe to ensure data visibility and controls are at the highest level for the next years. “We have successfully launched our new global transportation management system in several countries around the world and in Oman and will shall follow soon in the remaining Middle East & South Asia countries,” Madhav discloses. Overall, Madhav is quite satisfied with Hellmann’s performance in the region. He notes: “We have achieved market leader ship in the automotive, healthcare and fashion verticals through our state-of-the- art infrastructure, globally bench-marked systems and, most importantly, best in class specialised resources.” “We have always been a trend-setter in the market with innovative and out-of- the-box strategies to drive our growth in the MESA region. I like to think that we have taken Hellmann, over the last ten years, from a small transactional freight forwarder to now stand among the top five fully integrated service providers.” He concludes: “Hellmann is all about adding ease and efficiency in our customer supply chains, which is why we will offer advanced solutions later this year in the FMCG and industrial sector. There are many unique solutions that are needed moving past the typical handling of air, sea, land, and warehousing, and we aim to provide that to the market to support our customers being even more successful.” COVER STORY LNME “WE HAVE ALWAYS BEEN A TREND-SETTER IN THE MARKET WITH INNOVATIVE AND OUT-OF-THE-BOX STRATEGIES TO DRIVE OUR GROWTH IN THE MESA REGION. I LIKE TO THINK THAT WE HAVE TAKEN HELLMANN, OVER THE LAST TEN YEARS, FROM A SMALL TRANSACTIONAL FREIGHT FORWARDER TO NOW STAND AMONG THE TOP FIVE FULLY INTEGRATED SERVICE PROVIDERS.”
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38 | LOGISTICS NEWS ME | MAY 2022 WWW.CBNME.COM INTERVIEW LNME What is Al Masaood Power’s goals and objectives for 2022? Over the recent years, we, at Al Masaood Power Division have intensi fied our focus on sustainability not only as part of our response to the global trend and to future-proof our business but also to fulfil our social and environmental responsibilities. This route has led us to adopt two kinds of approaches to energy sources, namely hydrogen and electrification. We are confident that Al Masaood Power can add a lot of value when it comes to the supply chain for hydro gen. We seek to be a pioneer in hydro gen-powered marine technologies in the country. On electrification, we are looking at being active in providing electric automotive charging options to promote sustainable and efficient mobility. These two approaches will remain at the center of our strategy moving forward. Tell us about Al Masaood Power’s participation at the Dubai International Boat Show? It was a great success as the show pro vided us with an effective platform to showcase our latest technologies— es pecially our sustainable solutions— in teract with industry peers and engage with the local and global ship and yacht manufacturers. The event itself, which took place in a new location given the current global situation, had a large turnout. It was highly organized, allowing the participants and visitors to interact confidently, thanks to the safety and health protocols put in place through out the event. CHAMPIONING SUSTAINABLE MARINE SOLUTIONS Rasso Bartenschlager, General Manager of Al Masaood Power, talks about the division’s latest technologies and sustainable solutions showcased at Dubai International Boat Show “We are confident that Al Masaood Power can add a lot of value when it comes to the supply chain for hydrogen. We seek to be a pioneer in hydrogen-powered marine technologies in the country.” Rasso Bartenschlager, General Manager, Al Masaood Power
LOGISTICS NEWS ME | MAY 2022 | 39 CHAMPIONING SUSTAINABLE MARINE SOLUTIONS Why was this exhibition the right fit for Al Masaood Power? The exhibition was an ideal venue for us to display our portfolio of high- quality MTU- and Volvo Penta-man ufactured products that belong to the premium sector of the power nodes. We offer premium products in both smaller and bigger power nodes. The event was an opportunity to engage with our target market and showcase our big market share in the global mega yacht and superyacht segments. How important is sustainability for Al Masaood Power and what steps have been taken to achieve sustainability goals? As mentioned previously, sustain ability, particularly green mobility, is part and parcel of our future-proofing strategy. Our focus is on these two areas: supply chain for hydrogen and electric modular charging for any kind of mobility requirements. Tell us about the features of MTU Hybrid Propulsion System Solution and how it can benefit yachts, workboats, ferries, and patrol boats? The hybrid propulsion system solu tion, which combines electric and diesel, brings numerous benefits to yachts, workboats, ferries, and patrol boats. These include reduced carbon footprint, lower fuel consumption and reduced cost. It is also worth noting that the hybrid solution can be reduced in size and supported by electric power through a battery, which is ideal for workboats. Ferry boats can completely run-on electric motors to reduce their carbon emissions and be supported by a gen erator if power is not enough. A silent boat is a big advantage also. We expect to see the introduction of new rules and legislation to allow the use of this type of system in the future. What other solutions did you showcase at the Dubai International Boat Show? We exhibited a host of technologies, including diesel engines, the latest ver sion of Volvo Penta’s ship automation system and hybrid models. During the event, we signed an agreement with SeaBubbles to pave the way for us to build and assess the performance of hydrogen-powered flying boats in the UAE. Looking into the future, how do you see Al Masaood Power’s growth in the boat/ shipping sector? We see exponential growth oppor tunities in the sector, particularly in sustainability. Seeing the trend, it will not be a surprise to have a completely new shipping sector converted into this area in the near future. We will have a new sustainability-driven shipping community, opening up fresh growth opportunities for stakeholders. As we have started early, we are confident that we have an advantage that will enable us to strengthen our presence in this field.
40 | LOGISTICS NEWS ME | MAY 2022 WWW.CBNME.COM SUSTAINABLE FUELS LNME T o help meet environmental regulations and reduce the environmental impact of the shipping sector, increasing percentages of bio-components are being added to marine fuels. But what difference does this make to fuel husbandry and are there any risks to the marine operators? There are certainly some areas for concern and fuel management procedures may need to be adapted to avoid unnecessary maintenance costs or damage to engine systems. To help meet environmental regulations and reduce the environmental impact of the shipping sector, increasing percentages of bio-components are being added to marine fuels. In 2017, ISO 8217 6th edition allowed additional Distillate FAME (DF) grades: DFA, DFZ and DFB with a maximum Fatty Acid Methyl Esters (FAME) content of 7.0 v/v %, another potential facilitator of increased water content and microbial contamination. These are complemented with new biofuels, which are created using innovative refining processes, such as hydro processing of vegetable oils (HVO) and the co-processing of waste product (oils, plastics) and other raw material to substitute conventional crude oil, which may have different trace contaminants. IS BIO CONTENT IN FUEL POSING RISKS TO MARINE ASSETS? Pierre Poitras, Technical Consultant at Conidia Bioscience, looks at how the increased percentage of biofuels can raise the cost of fuel as well as leave it susceptible to microbes
LOGISTICS NEWS ME | MAY 2022 | 41 CHAMPIONING SUSTAINABLE MARINE SOLUTIONS While these reduce greenhouse gas (GHG) emissions, their different chemistry can potentially pose additional risks to marine assets. Microbial contamination The increased threat comes in the form of an increased potential for microbial contamination. Dormant spores of microbes, including yeast, filamentous fungi, and bacteria, are present in fuel and, when water and air are in the system, create an ideal breeding ground for them to multiply and grow. The bio-component (biodiesel) within marine fuels, generically referred to as fatty acid methyl ester (FAME), gives these fuels a greater affinity to retain water, exacerbating the risks of microbial contamination. Water will typically separate from fuel but the introduction of FAME into its chemical composition means it will retain water at greater concentrations. At the refinery, fuel contains <200 ppm water content but, once exposed to the elements, DF grades can contain over 500 ppm water. Typically, the greater the FAME content, the greater the potential for increased amount of emulsified water, which can reach up to 1500 ppm. Indeed, 100% biodiesel can hold 15 to 25 times more water compared with 100% diesel fuel. Water can find its way into fuel throughout the fuel supply chain. Anywhere where air is present, there is potential for moisture to condense – and there is plenty of opportunity in a marine environment! Water can be present in the fuel as free droplets, entrained water, or a separated layer of free water beneath the fuel. Combined with the increased organic content of biofuels for the microbes to feed on, the risk of contamination has increased significantly. Even if general maintenance procedures have prevented or controlled contamination in the past, ship owners and operators should consider taking additional steps to minimize the threat and protect their vessels. Why is microbial contamination an issue? Microbial contamination covers multiple types of organisms, the presence of which will vary according to individual site conditions, based on factors such as temperature and humidity. The microbes work together in communities to degrade fuel and affect fuelling equipment. They form biofilms, which are complex structures of sticky, slimy polymeric substances that provide a protective habitat for microbes growing within them. These biofilms can clump with any other floating cellular material to form microbial biomass clusters that can plug filters, screens, or other small orifices within the fuel system. Furthermore, these biomass layers generate organic acids that corrode metal surfaces, causing damage to fuel tanks and other ancillary equipment. If left untreated, vessels are at risk of costly damage to systems, breakdowns while at sea, and being out of service for several days. Protecting assets As we look to further increase the percentage of FAME to reduce environmental impact of marine fuels, the risk of microbial contamination also increases. On top of this threat, advances in technology to produce more efficient combustion engines increase the engines’ susceptibility to the risks of microbial contamination. Recent engine advancement has introduced precise, higher internal pressure fuel nozzles, whose smaller orifices have a lower tolerance to sediments and particulate matter that might be generated by off-spec fuel. This ‘perfect storm’ in the advances to control GHG emissions requires better fuel management steps to ensure valuable equipment is not damaged and huge costs incurred. It is good practice to remove as much water as possible from fuel supplies, but a sound testing regime will also help ensure contamination does not lead to corrosion or damage of systems. Understanding levels of contamination Pierre Poitras, Technical Consultant at Conidia Bioscience
42 | LOGISTICS NEWS ME | MAY 2022 WWW.CBNME.COM SUSTAINABLE FUELS LNME means maintenance actions, such as tank cleaning and adding biocide, can be tailored and optimised to avoid unnecessary costs. Sampling to identify microbial contamination is either carried out in a laboratory or on site on board. The frequency of testing can be honed according to microbial test results, observed trends, and operational experience. The issues with sending samples to shore-based laboratories for testing derive from the fact that the microbes are living, dynamic organisms. This means that the microbial population can change while the sample is in transit and during time delays, and results may not be representative of the tank environment. Samples therefore need to be stored and transported under environmentally controlled conditions, which presents logistical issues and the time taken to get results may mean the ship has visited port and returned to sea before realizing there is a problem. On site testing Rather than sending fuel samples to a laboratory, testing the fuel in situ, whether in port or at sea, provides a quick, easy, and cost-effective alternative. Test kits based on antibodies, such as the Fuelstat test kit from Conidia Bioscience, are a proven method for identifying microbes with the ability to degrade fuel and provide an accurate indication of contamination levels. These low-cost, single use test kits are simple to use, require minimal training, need no special handling, and can be readily integrated into day-to-day operations. They provide a result in a matter of minutes, which can be scanned into a mobile app for the purposes of logging and sharing results immediately from ship to shore. They offer an economical and quick way to determine levels of microbial contamination in fuel and enable fuel tank testing while at sea, and any required remediation work to be scheduled for when the ship returns to port. We must reduce GHG emissions; increasing the percentage of FAME in marine fuels is a clear and easy ‘winner’ in the short term while we wait for the development of technology and infrastructure to support zero carbon alternatives. The chemical change in the composition of biofuels, however, means we need to recognize the increased risk of microbial contamination and adapt routine operations to ensure advanced corrosion and damage to system components does not threaten vessel availability and add significant costs to the bottom line. Although ship owners may have previously had minimal issues with microbial contamination, fuel management procedures should be updated to protect marine vessels. Contamination can occur throughout the fuel supply chain and simple, onboard testing provides instant results, facilitates optimization of maintenance procedures, and may save thousands in repairs or lost operating time.
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44 | LOGISTICS NEWS ME | MAY 2022 WWW.CBNME.COM HEAVY LIFTING LNME
LOGISTICS NEWS ME | MAY 2022 | 45 INTEGRATED TRANSPORT SOLUTIONS T he complexity of moving heavy cargo, sourced globally for pro jects, requires a partner with a combination of readily available resources for both marine and on shore transports and the expertise to overcome logistical obstacles and bot tlenecks. Specialised knowledge can be very benefi cial, particularly in large and complicated projects, since experts in various specialties can provide valuable services. However, this often involves contracting various independ ent suppliers, each responsible for only their own part in the logistics chain. Excessive costs and delays can result from poor coor dination and communication between these specialists. Strategic partnerships Hence, project owners, EPCs and freight forwarders can benefit from working with service provider partnerships, such as the alliance between marine transport special ist - OFCO, Offshore International, and onshore transport and installation specialist Mammoet. Each organisation’s expertise and resources are combined, and a single point of contact for communications ensures the alignment and optimisation of logistics and installation schedules. A recent example of turnkey logistical solutions was the swift delivery of a critical project cargo for a power plant in Sharjah, UAE. Two 140t transformers needed to be received from a container vessel in Jebel Ali Port and then transported to the site in Sharjah for further installation. Following comprehensive risk assess ment and engineering, the team proposed receiving the cargo via a double banking operation and marine transport to Shar jah’s Khalid Port. The cargo was efficiently discharged by a floating crane onto a land ing craft provided by the alliance and then transported to Khalid Port. The transform ers were then offloaded using a RORO method using self-propelled modular trail ers, before being safely transported to the site. Once on site they were installed using a jacking and skidding method. Marine Operations Manager at Mammoet MEA, Harshad Deshpande, commented: INTEGRATED TRANSPORT SOLUTIONS Combined marine and land transport offering creates solid foundation for project market logistics in the Middle East
46 | LOGISTICS NEWS ME | MAY 2022 WWW.CBNME.COM “By involving the alliance in the logistics of the power plant components, the cus tomer took advantage of the increased flexibility for the cargo move, both ma rine and onshore, thereby saving time and additional costs such as port charges and double handling of the cargo.” Critical cargo delivery Captain Maktoum Al Houqani, Chief Corporate Authority Officer and Acting Head of Maritime Cluster at AD Ports Group, and Chairman of OFCO – Off shore International said “The recent success of the delivery of critical project cargo intended for a power plant in Sharjah serves as a prime example of how service provider partnerships, such as the one held today between OFCO and Mammoet, can facilitate highly spe cialised and complex projects combining logistical transport solutions across both land and sea. “We look forward to the continuation of our collaboration, which combines the long-standing expertise and resources of both organisations, to deliver a unique and competitive offering for customers seeking a robust end-to-end solution to meet their logistical needs.” Other examples of successful and streamlined logistics include the loadout and marine transport of critical boiler components from Mina Zayed Port to Ruwais; the delivery of nearly 40 compo nents from Khalifa and Ras Al Khaimah ports to Das Island for an ongoing ex pansion project and the delivery of two 94t storage tanks from Mina Zayed Port to ICADII jetty in Abu Dhabi. “The vision for our partnership was to create a unique offering and a real value for our customers in the GCC. By engag ing us, the customers benefit from our optimized planning and operations, in- house assets, expertise and engineering know-how. Reduced interface manage ment within the logistics chain of projects give our customers the required peace of mind to concentrate their energies to wards their business goals.” commented Thomas Wylie, Sales Director - Projects, Mammoet MEA. “With the recent major project awards in the region, we are well positioned to provide the complete package of heavy lifting and transportation services, both onshore and offshore, from local ports to foundation, thereby advancing our con tinuous pursuit to help our clients speed up productivity.” he concluded. HEAVY LIFTING LNME “Reduced interface management within the logistics chain of projects give our customers the required peace of mind to concentrate their energies towards their business goals.”
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