A Quick Reality Check on Logistics Challenges & ChangesImpacting the Gulf Cooperation Countries (GCC)

Presented by:

Dr Craig VoortmanNational Center of Excellencein Supply Chain & Logistics,Royal Commission Yanbu,

Saudi Arabia

4 KEY PILLARS OF NATIONAL CENTER

World

Class

Research

World

Class

Training

World

Class

Education

World

Class

Consultancy

& Outreach

Research Expertise:

*RFID Technology in SC

*SC Risk Management

*Green Logistics & Waste

*Saudi & New Silk Route

*Arabic Journal of Logistics

*Logistics SC News MENA

Center on Research Map:

(1) Top Journal

(2) Top Topical Magazine

Logistics Training &

Skills Development

*15 International

Accredited Certificates

*35 Specialist Certificates

Improve Saudi capabilities

& knowledge & skills

World Class Training:

(1) 15 International Cert.

(2) 35 Specialist Cert.

Advisor Capacity

*BS SCM YUC Male

(Transport/ Procurement)

*BS SCM YUC Female

(Retail/ Procurement)

*BS Industrial Eng/Log YIC

(Production/ Manufacturing)

Leave Educational Legacy:

(1) BS Male World Class

(2) BS Female World Class

Consultancy

*Internal: Development of

Multi-Modal Logistics Hub

*External: Develop Supply

Chain Assessment Tool for

companies to improve

processes quickly smartly

Empower Companies:

(1) Supply Chain Audit

(2) Topical Mini-Seminars

Quick 5 Point Sketch of Logistics in the GCC & the Globe

1. GCC Shifts Logistics Shifts, Smart Moves, Strategy

2. Old World Maritime Powers Make way for the New World Maritime Power(s) &New World Maritime Power Shifts From West to Eastern (New) World

3. New Silk Route Presents Opportunities for Middlemen/ Traders/ Shippers/ Logisticians in ME, Red Sea, NSE Africa

4. Global Trends and Current Realities

GCC Realities and Opportunities:(1) Labour Changes & New Tax Propositions

(2) UAE Expo 2020 & $econd half of 2017

(3) Qatar FIFA 2022 & major project$ 2018 (4) Oman Shipping & Logistics Objective$

(5) Saudi 1 Trillion Riyal Released to CompaniesVision 2030 & Move to Diver$ified Economy

Realities include: Job Creation, Nationalisation & Skills Development Emeratis,Saudis,Omanis, Qataris & Local Talent Dev.Move from Oil-Based Economies to more Diversified Diversified Industries & New Skills SetsEducational Hubs, Financial Hubs, Tourism Hubs, MICE,

Air Logistics Hubs, Sea Shipping Hubs, Talent Pool Hubs

15 May 2013 6th Global Supply Chain and Logistics Summit 2013 www.sclgsummit.org15 May 2013 6th Global Supply Chain and Logistics Summit 2013 www.sclgsummit.org

New C-Pak Logistics Corridor

Yanbu

Portuguese British Dutch Spanish Were Maritime Powers

Going West to East; Now China is Maritime Power Going East to West

Old Days & Old World

Power Shift

Now 20-30 Years

New Silk Route: China & soon India will be Playing this Global Game: What of the ME??

Just do the logistics of the big boys

Asia currently represents 2/3 of global container trade

Asian will soon be 4/5 of global container trade

66% towards 80%

In the Olden Days,the world’s top ports were in the

Western World

Now in the New & Future Days,the world’s top ports are all already in the Eastern World

A subtle noticeable shift for him who has eyes to see

& ears to hear.

Within 5 hours flying time from

Hong Kong lives more than

½ world’s population

China & India Represent 40% of World Population

20%

20%60%

World Population

China

India

World

China & India: Massive Economies of Scale1. China almost 20% of worlds population (19% to be exact)

2. India almost 20% of the worlds population (18% to be exact)

3. Two nations that represent almost 40% of world’s population are the next two major superpowers (USA moves into 3rd)

4. World’s soon-to-be-biggest homogenous consumer market ever will emerge & domestic consumption ginormous

5. Significant opportunities if you know what the New Silk Route really is & how to capitalise on it: Massive new Road Network of cargo flows via the ME Massive Sea cargos moving towards Europe, Eastern & Southern Africa, on towards Brazil & Americas.New Rail & Pipeline Systems between East, ME & Europe.Massive global Airport Hubs emerge Dubai (Emirates), Abu Dhabi (Etihad), Qatar, Jeddah (Saudi), Addis (Ethiopian).Container ports will pop up all around Arabic Peninsula, in places like Yanbu - a new transhipment, oil & mineral hub

Global Trends & Current World Realities:

(1) Flat world society……flat economic growth(2) CEOs have to suck money from stones(3) Cost containment & cost awareness will continue(4) Move from Tree Greens to Cash Greens(5) Financial Markets& Investments have wings can…(6) Volatility in market makes it hard to demand forecast(7) Adaptability & Agility Key (Smart Decoupling Points)(8) Sales down ↓Shipping down ↓Rates charged

↓Cut Costs Deal ↓Profits Down(9) Incremental Growth Just Like Old Days of Business(10) Normal Economic World for Next 18 months to Possibly even 5 plus Years before the Next Super Cycle