logistics me - dec 2009

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSDECEMBER 2009 ISSUE 63

AIR CARGO І EXPRESS І 3PL І FREE ZONES І MATERIAL HANDLING І TRAINING І TRADE ASSOCIATIONS

An ITP Business Publication

COMPANY PROFILESPerformance reviews with 80 leading institutes from the supply chain industry

NEWS ROUNDUP 2009Looking back at the most prominent logistics news stories in the Middle East

THE HIGHS AND LOWS OF THE YEAR IN THE MIDDLE EAST LOGISTICS INDUSTRYTHE HIGHS AND LOWS OF THE YEAR IN THE MIDDLE EAST LOGISTICS INDUSTRY

ANNUAL REVIEW

1

EDITOR’S LETTER

www.arabiansupplychain.com | DECEMBER 2009

Are brighter times ahead for logistics?

ooking back on 2009 and it seems the Middle East logistics sector has faced its most challenging year to date. Following years of positive reports on the continued growth of companies across this industry, we’ve had the

unfortunate task of reporting on company closures and job redundancies. However, every cloud has its silver lining, which has been especially true in this region compared to developed markets such as Europe and the United States. In fact, the vast majority of companies that are featured in our annual review this year have decided to take a deep breath in these challenging times and concentrate on understanding their business operations a little better. Th e strategy, in most cases, has worked wonders and reports about lower operating costs and higher profi t margins have become a common theme in this issue of Logistics Middle East.

Moving ahead, with 2009 fi nally drawing to a close, its time to start thinking about the future, with growth forecasts in the region being a lot more positive, especially when compared to this time in 2008. Of course, it’s important to keep your expectations as realistic as possible and the general consensus is that a recovery will commence in 2010, but the process will be slow and steady - a situation that most of the companies in this annual review issue have welcomed with open arms.

We’re also starting the countdown for next year’s Supply Chain and Transport Awards (SCATA), which have proved a remarkable success in the previous three years and promise to return on a grander scale in 2010. Given the economic climate and the attitude that ‘change is around the corner’, these awards will off er a perfect opportunity to celebrate the logistics industry’s biggest achievements in the past year. Further information will be provided in the coming months and we welcome your suggestions for next year’s ceremony.

If you have any comments or suggestions to make on this month’s issue, please email Robeel Haq, senior group editor of Logistics Middle East ([email protected])

To subscribe please visit www.itp.com/subscriptions

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3www.arabiansupplychain.com | DECEMBER 2009

FEBUARY 2009

Th e media spotlight was shining

on Sharjah at the beginning of

the year, with suggestions that

logistics activities in the emirate

would experience a record period of

growth in the coming years. Th e

assessment was supported by a

series of infrastructure project

launches, including the 500,000m2

Hamriyah Maritime Centre and

700,000m2 International Logistics

City. “Sharjah holds tremendous

appeal as a regional logistics hub,” commented Professor Philbert Suresh,

founder of the GUST Logistics Forum. “Th e global recession has forced

companies to look for effi cient and aff ordable solutions, so I’m sure the

Middle East will benefi t from the development of another logistics hub.”

OTHER LOGISTICS NEW STORIES IN JANUARY 2009• First Bahrain announced plans to expand its warehousing space at

Bahrain Investment Wharf to cope with massive demand from small

and medium business enterprises (SMEs) in the Middle East region.

• DHL Express boosted its transportation infrastructure in the Middle

East with a US$3.7 million warehouse in Jordan, measuring 4000m2.

• A number of fi gureheads from Dubai’s logistics sector took part in the

second annual Dubai Hamburg Business Forum in Germany.

• Airbus Middle East secured a two-year contract from Parker Aerospace

to provide a range of storage and handling services in Dubai.

• Logistica supported its multi-million dollar expansion strategy in the

Middle East with the opening of new facilities in Oman and Qatar.

• NMC Trading became the largest warehousing customer to date at

Dubai Industrial City after signing a long-term agreement to lease

230,000 square feet of storage space.

• Aramex announced a major expansion in the Sultanate of Oman with

the opening of a fl agship offi ce in the Al Khuwair district of Muscat.

• Hala Supply Chain Services (HSCS) was appointed as the offi cial

distributor for Psion Teklogix in the Kingdom of Saudi Arabia.

JANUARY 08Airfreight will be the fastest growing

market for cargo transportation

in the United Arab Emirates,

according to a market report from

Business Monitor International

(BMI). Th e sector will experience an

average growth rate of 8.2% per year

between 2009-2013, compared to

5.1% in sea freight and 4.4% in road

haulage. “Th e dynamic economy in

the UAE is becoming more diverse

and shows evidence of robustness to withstand external shocks,”

explained Michelle Byrne, head of freight and transport analysis at

BMI. “Strong investment in transport infrastructure and the global

ambitions of companies such as Emirates Airlines and DP World will

also be positive growth factors for the country.”

OTHER LOGISTICS NEWS STORIES IN FEBRUARY 2009• A programme to lower supply chain costs in the Middle East was

launched by the Global Coalition for Effi cient Logistics (GCEL) at the

Arab Economic, Social and Development Summit in Kuwait.

• Th e fi nal blueprints for Saudi Arabia’s ambitious seaport at King

Abdullah Economic City (KAEC) were revealed by developer Emaar

Economic City (EEC).

• GeoPost Intercontinental announced the appointment of Emanuil

Stoimenos as Middle East chief executive offi cer to overlook its

forthcoming expansion in the region.

• DHL Supply Chain introduced a training and development scholarship

in the Middle East to commemorate its former contract director David

Rouse, who passed away in 2008.

• TNT Express launched a safety awareness programme to reduce the

number of traffi c-related accidents in the United Arab Emirates.

• British Airways confi rmed plans to resume its services to Saudi

Arabia with the launch of weekly fl ights to Jeddah and Riyadh.

• Arshiya Transport commenced road transport services from Dubai,

with plans to operate a fl eet of 1000 owned and leased vehicles.

d h id f b t

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSFEBRUARY 2009 ISSUE 53

CHEP І KUEHNE + NAGEL І GEOPOST І TNT EXPRESS І JAFZA INTERNATIONAL І ARAMEX


JUST

Manoj Loya, general manager, Galadari Ice Cream Company

An exclusive scoop on Baskin Robbins’ regional supply chain operations

ON THE DEFENCECan the logistics industry play a role in boosting the military supply chain?

UNIVERSITY CHALLENGEKeeping updated on the growing number of Middle Eastern logistics courses

DESSERTS

JANUARY 2009

ANNUALNEWS

REVIEWREVIEW

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSJANUARY 2009 ISSUE 52

ALSO IN THIS ISSUE: HALA SUPPLY CHAIN SERVICES І AGILITY І DUBAI INDUSTRIAL CITY І JAFZA І SWIFT FREIGHT І LOGISTICA


EASY RIDER

Moh

amed

Iqba

l, op

erat

ions

man

ager

, Har

ley-

David

son

UAE

Is Harley-Davidson on the road to success with its Middle East supply chain operations?

AIMING HIGHEmirates Aviation Collegereveals its postgraduateprogramme in logistics

BUILDING BLOCKSAn exclusive update on warehouse construction at Dubai Logistics City

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSFEBRUARY 2009 ISSUE 53

CHEP І KUEHNE + NAGEL І GEOPOST І TNT EXPRESS І JAFZA INTERNATIONAL І ARAMEX


JUST

Manoj Loya, general manager, Galadari Ice Cream Company

An exclusive scoop on Baskin Robbins’ regional supply chain operations

ON THE DEFENCECan the logistics industry play a role in boosting the military supply chain?

UNIVERSITY CHALLENGEKeeping updated on the growing number of Middle Eastern logistics courses

DESSERTS

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSMARCH 2009 ISSUE 54

EMIRATES POST І EHRHARDT + PARTNER І AGILITY І GAC І HY-TECH LOGISTICS І FIRST BAHRAIN


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Building a solid supply chain with Ace Hardware in the Middle East

SCATA 2009 PREVIEWThe latest details on this year’s Supply Chain and Transport Awards in Dubai

EXPRESS STRATEGYWhy the global slowdown will not impact FedEx’s Middle East masterplan

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSAPRIL 2009 ISSUE 55

SSI SCHAEFER І TALKE LOGISTICS І XVISE І CILT І BALTRANS І DUBAI LOGISTICS CITY


BUILDING THE BIGGER PICTUREPiecing together the multi-million dollar investment behind Aqaba’s logistical transformation

RISKY BUSINESSHas the global recession increased the importance of purchasing insurance?

KEYS TO THE KINGDOMSaudi Arabia returns as a hot investment for the global logistics industry

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSMAY 2009 ISSUE 56

AL MADINA LOGISTICS І CILT І FEDEX І AGILITY І DUBAI TRADE І FIRST BAHRAIN


CITY SLICKERA surprise breakthrough as RSA Logistics opens the fi rst warehouse at Dubai Logistics City

SYSTEM OVERLOADHas the global recession provided WMS supplierswith a golden opportunity?

GENERATION NEXTMaking an impact with the latest entrants in the Middle East 3PL sector

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSJUNE 2009 ISSUE 57

DUBAI INDUSTRIAL CITY І SPAN GROUP І INTERMEC І ARAMEX І SUPPLY CHAIN & LOGISTICS GROUP


FULL STEAM AHEADAn exclusive look into CEVA’s US$800 million Middle East investment

MOBILE MARKETCan the logistics industrybenefi t from developmentsin handheld computers?

Revealing the winners of this year’s Supply Chain and Transport Awards

MATERIALS

HANDLING

MIDDLE EAST

2009 SHOW

REVIEW INSIDE

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSJULY 2009 ISSUE 58

MAXX LOGISTICS І JAFZA І DUBAI CUSTOMS І GLOBELINK І IATA І BOOZ AND COMPANY


OPPORTUNITY KNOCKSThe latest research points to growth prospects in theMiddle East‘s 3PL sector

THE RIGHT FREQUENCYHow the Middle East haschampioned RFID within the regional postal sector

Why cold storage is a hot market for Global

Shipping & Logistics (GSL)

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSAUGUST 2009 ISSUE 59

ABU DHABI CUSTOMS І INTERROLL І ARAMEX І DECCAN 360 І DUBAI LOGISTICS CITY


LOGISTICS LOWDOWNRHS Logistics outlines its development strategy for the United Arab Emirates

WAREHOUSE WORLDWhich industrial zones are leading the Middle East’s logistical growth?

Abu Dhabi Airports Company (ADAC) prepares to take the logistics industry by storm with its warehousing projects

PARK LIFEwww.arab

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NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSSEPTEMBER 2009 ISSUE 60

BOOZ AND COMPANY І GEODIS WILSON І UPS І APL LOGISTICS І MAXIMUS AIR CARGO


AMBITIOUS PLANNINGWhy ADAC is breaking the mold with its forthcoming logistics park in Abu Dhabi

MOUNTING PRESSUREThe benefi ts of adopting vehicle-mounted devices in your warehouse centre

Profi ling the logistics industry’s hottest new destination in focus

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSOCTOBER 2009 ISSUE 61

AMANA BUILDINGS І TNT EXPRESS І SNS І GAC LOGISTICS І MORGAN INTERNATIONAL


PREVIEW: SITL DUBAIA profi le of the biggest logistics exhibition to hit the Middle East in 2009

BEING CONSTRUCTIVECan the industry measure its health with demand for warehouse construction?

SILENTLEADERGlobelink West Star Shipping steps out of the shadowsto celebrate its 20th anniversary as a logistics powerhouse

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSNOVEMBER 2009 ISSUE 62

STORALL І ARAMEX І DAMCO І CEVA LOGISTICS І SPAN GROUP І FIRST BAHRAIN


SITL DUBAI REPORTHighlights of the biggest logistics exhibition to hit the Middle East in 2009

CHEMICAL REACTIONThe hidden potential of the petrochemical sector for 3PL service providers

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ANNUAL REVIEW

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSJANUARY 2009 ISSUE 52

ALSO IN THIS ISSUE HALA SUPPLY CHAIN SERVICES І AGILITY І DUBAI INDUSTRIAL CITY І JAFZA І SWIFT FREIGHT І LOGISTICA


EASY RIDER

Moh

amed

Iqba

l, op

erat

ions

man

ager

, Har

ley-

David

son

UAE

Is Harley-Davidson on the road to success with its Middle East supply chain operations?

AIMING HIGHEmirates Aviation Collegereveals its postgraduateprogramme in logistics

BUILDING BLOCKSAn exclusive update on warehouse construction at Dubai Logistics City

ANNUAL REVIEW 2009: NEWS ROUNDUP

4 DECEMBER 2009 | www.arabiansupplychain.com


APRIL 2009

Th e Dubai Department of Economic

Development (DED) held the fi rst in

a series of logistics workshops to

encourage a stronger relationship

between the private and public

sector. Th e event attracted a

number of fi gureheads from the

logistics industry, including Issa

Baluch (Barloworld Logistics),

Hamdi Osman (FedEx) and Alex

Borg (CILT). “Logistics has always

been a cornerstone of economic

development in the Middle East,” said David Harris, DED’s director

of international logistics services. “Th e better the communication

between the private and public sectors, the more the industry can

fl ourish and support the future growth of Dubai.”

OTHER LOGISTICS NEWS STORIES IN MARCH 2009

• Gulf Agency Company (GAC) expressed a “quiet confi dence” that

its global operations would experience a limited impact from the

recession, with 13% income growth being predicted for 2009.

• Al Hanoo awarded a US$109 million construction contract to develop

the fi rst phase of its Emirates Industrial Cities warehouse complex.

• Patel Integrated Logistics Limited (PILL) commenced a search for

Middle Eastern investors to develop its operations in South Asia.

• Hala Supply Chain Services (HSCS) was ranked 15th in this year’s

Saudi Arabia Start-Up List for excellence in business growth.

Th e logistics industry was warned

that a stream of redundancies from

heavyweights such as Gulf Agency

Company (GAC) and DP World could

“prove costly” to future growth

prospects in the Middle East. Th e

announcement was made by John

Halpin, former general manager

of Hy-Tech Logistics, who stressed

the importance of maintaining a

balanced workforce. “Redundancies

may produce short-term savings,

but what will the long-term cost be? Companies that make knee-jerk

decisions to reduce their headcounts need to consider how these skills

and experience will be replaced,” he explained. “Th e focus should be

holding onto experienced personnel within the Middle East region.”

OTHER LOGISTICS NEW STORIES IN APRIL 2009• RSA Logistics become the fi rst company to commence operations at

Dubai Logistics City (DLC), opening a 25,000m2 warehousing complex in

close proximity to the forthcoming Al Maktoum International Airport.

• Dubai-based Global Shipping & Logistics (GSL) was accredited in four

categories by the International Standardisation Organisation (ISO).

• TALKE Logistics honoured the project manager of its Qatar warehouse

for ensuring the construction was fi nished without a single accident.

• FedEx revamped its packaging material for express deliveries in Bahrain

to support the country’s “Say No To Plastic” community programme.

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSAPRIL 2009 ISSUE 55

SSI SCHAEFER І TALKE LOGISTICS І XVISE І CILT І BALTRANS І DUBAI LOGISTICS CITY


BUILDING THE BIGGER PICTUREPiecing together the multi-million dollar investment behind Aqaba’s logistical transformation

RISKY BUSINESSHas the global recession increased the importance of purchasing insurance?

KEYS TO THE KINGDOMSaudi Arabia returns as a hot investment for the global logistics industry

MARCH 2009NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSMARCH 2009 ISSUE 54

EMIRATES POST І EHRHARDT + PARTNER І AGILITY І GAC І HY-TECH LOGISTICS І FIRST BAHRAIN


TOOLS OF THE TRADE

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Building a solid supply chain with Ace Hardware in the Middle East

SCATA 2009 PREVIEWThe latest details on this year’s Supply Chain and Transport Awards in Dubai

EXPRESS STRATEGYWhy the global slowdown will not impact FedEx’s Middle East masterplan

JUNE 2009

DP World, FedEx and Al Islami Foods

were honoured for supply chain

excellence at the Mohammed Bin

Rashid Al Maktoum Business Awards.

Th e annual event, which is organised

by Dubai Chamber of Commerce and

Industry (DCCI), was held at Dubai’s

Madinat Jumeirah hotel to recognise

the achievements of industry leaders

from the logistics, manufacturing,

construction and fi nance sectors.

“Th ese awards have acquired a

massive importance due to their role in highlighting the leading business

practices and excellent performance of certain fi rms,” commented Abdul

Rahman Saif Al Ghurair, chairman of Dubai Chamber. “Th e winners have

set a wonderful example for other companies to follow.”

OTHER LOGISTICS NEW STORIES IN MAY 2009• Singapore Airlines Cargo consolidated its Middle East operations with

a dedicated offi ce at Sharjah Airport International Freight Centre.

• Agility started operations at a 40,000m2 warehousing centre in Riyadh,

Saudi Arabia to support its continued expansion in the Middle East.

• Etihad Crystal Cargo was confi rmed as the latest member of IATA’s

Cargo 2000 initiative to improve the global handling of shipments.

• Th e Chartered Institute of Logistics and Transport (CILT) hailed its

latest seminar in Dubai a success, attracting more than 150 people.

Th e Supply Chain and Logistics

Group (SCLG) commenced a major

research initiative into the Middle

East logistics industry, a senior

offi cial from the Dubai-based trade

association told Logistics Middle

East. A comprehensive range of

information will be collated as part

of the project, with key investors

from the private and public sectors

being provided with access to the

fi rst set of information by the end

of 2009. “Th ere is a limited amount of authenticated research into the

Middle East logistics industry,” said Dr Kanak Madrecha, member

of SCLG’s regional development committee. “We have launched this

research project to expand the scope of available information.”

OTHER LOGISTICS NEWS STORIES IN JUNE 2009

• Dubai Industrial City confi rmed plans to expand its open storage

area by 3.5 million square feet to meet demand from customers.

• Dubai’s bi-annual exhibition Materials Handling Middle East was

declared a record-breaking success by Epoc Messe Frankfurt.

• Eros Group opened its 13,000m2 warehouse in Jebel Ali Free Zone

South to cope with growth in the consumer electronics market.

• Al Mutlaq United Company signed an agreement to market the ISIS

warehouse management system (WMS) in Saudi Arabia.

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSJUNE 2009 ISSUE 57

DUBAI INDUSTRIAL CITY І SPAN GROUP І INTERMEC І ARAMEX І SUPPLY CHAIN & LOGISTICS GROUP


FULL STEAM AHEADAn exclusive look into CEVA’s US$800 million Middle East investment

MOBILE MARKETCan the logistics industrybenefi t from developmentsin handheld computers?

Revealing the winners of this year’s Supply Chain and Transport Awards

MATERIALS

HANDLING

MIDDLE EAST

2009 SHOW

REVIEW INSIDE

MAY 2009NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSMAY 2009 ISSUE 56

AL MADINA LOGISTICS І CILT І FEDEX І AGILITY І DUBAI TRADE І FIRST BAHRAIN


CITY SLICKERA surprise breakthrough as RSA Logistics opens the fi rst warehouse at Dubai Logistics City

SYSTEM OVERLOADHas the global recession provided WMS supplierswith a golden opportunity?

GENERATION NEXTMaking an impact with the latest entrants in the Middle East 3PL sector



JULY 2009

SEPTEMBER 2009

Jebel Ali Free Zone announced

plans to align its procedures with

Dubai Logistics City to improve the

effi ciency of supply chain operations

in the United Arab Emirates. Th e

partnership was fi nalised with

the signing of a Memorandum of

Understanding (MoU) between

Economic Zones World (EZW) –

parent company of Jebel Ali Free

Zone Authority (Jafza) – and Dubai

Aviation City Corporation, which is

responsible for Dubai Logistics City and the forthcoming Al Maktoum

International Airport. “Th is is a landmark step and will have a positive

impact on Dubai’s status as one of the world’s leading commercial and

trading hubs,” stated Salma Hareb, chief executive offi cer of EZW.

OTHER LOGISTICS NEW STORIES IN AUGUST 2009• Gulf Warehousing Company (GWC) revealed an investment of US$68.5

million to construct the fi rst phase of its Logistics Village Qatar (LVQ)

project, with 83,000m2 of storage space and 23,200m2 of accommodation.

• Ajman Free Zone Authority secured US$14.7 million of fi nancing from

Ajman Bank for the third phase of its large-scale warehousing complex

in Al Jarf Industrial Area.

• Manara Developments Company revealed its concept masterplan for

Bahrain Investment Gateway, the 600,000m2 warehousing complex

that was previously known as the Al Hidd Development Project.

• Dubai Customs hosted an awards ceremony at Dubai Cargo Village to

honour 41 inspectors from its airfreight department for completing an

in-depth training course on x-ray detectors.

• Abu Dhabi Customs Authority purchased US$8.6 million worth of x-ray

screening systems from America Science & Engineering (AS&E).

• US-based Dependable Global Express opened its fi rst Middle East

facility in Jordan for corporate, government and military customers.

Although the logistics industry

will benefi t from annual growth

rates of 8% in Middle East road

freight volumes, the situation will

present a number of challenges

for governments in the region,

according to a trade report by Booz

and Company. “Th e strength of this

sector is critical to the economic

development of the Middle East.

However, with more trucks on

the road, the region is facing new

challenges,” commented Ahmed El Wetidi, senior associate of Booz

and Company. “Overtired drivers, overloaded vehicles and roads that

are unsuited to higher truck volumes are causing more accidents in

the Middle East compared to the likes of Europe or the US.”

OTHER LOGISTICS NEWS STORIES IN SEPTEMBER 2009

• Maximus Air Cargo was contracted to operate a regular series of

fl ights for Etihad Crystal Cargo in countries throughout the Middle

East, Indian subcontinent, East Africa and Europe.

• Th e global recession claimed its latest victim, with IIR Middle East

being forced to cancel its International Freight Week in Abu Dhabi,

following a limited response from the market.

• Hala Supply Chain Services (HSCS) was selected to design and build

a 15,500m2 logistics complex with a warehouse, service centre and

offi ce space for a leading tyre manufacturer in Saudi Arabia.

• Th e Professional Courier (TPC) launched its services in the Middle

East with a regional headquarters in Dubai, with plans for additional

facilities in Abu Dhabi, Sharjah and other emirates.

• APL Logistics launched a range of consolidation, distribution and

value-added services from Dubai Logistics City.

• Integrated Freight & Logistics (IFL) expanded its offi ce network in

the United Arab Emirates with a facility in Abu Dhabi.

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSSEPTEMBER 2009 ISSUE 60

BOOZ AND COMPANY І GEODIS WILSON І UPS І APL LOGISTICS І MAXIMUS AIR CARGO


AMBITIOUS PLANNINGWhy ADAC is breaking the mold with its forthcoming logistics park in Abu Dhabi

MOUNTING PRESSUREThe benefi ts of adopting vehicle-mounted devices in your warehouse centre

Profi ling the logistics industry’s hottest new destination in focus

AUGUST 2009

J

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSAUGUST 2009 ISSUE 59

ABU DHABI CUSTOMS І INTERROLL І ARAMEX І DECCAN 360 І DUBAI LOGISTICS CITY


LOGISTICS LOWDOWNRHS Logistics outlines its development strategy for the United Arab Emirates

WAREHOUSE WORLDWhich industrial zones are leading the Middle East’s logistical growth?

Abu Dhabi Airports Company (ADAC) prepares to take the logistics industry by storm with its warehousing projects

PARK LIFEwww.arab

iansupplychain.com

OUT NOW!

DIRECTORY

Dubai Customs hosted a meeting

with express logistics companies to

showcase the latest enhancements

for its Mirsal2 e-clearance system.

Th e session was attended by senior

representatives from various courier

fi rms, including TCS Express, UPS,

Elite Couriers, Skynet Worldwide,

DHL and TNT Express, in addition

to Emirates SkyCargo and DNATA

employees. “Dubai Customs is focused

on building a strong relationship

with partners such as the courier sector, which plays an important role

in the economic development of the emirate,” stated Ahmed Mahboob

Musabih, executive director of the customer management division at

Dubai Customs. “Th is meeting was organised to highlight the latest

clearance procedures on Mirsal2 and allow feedback on the customs

clearance needs of courier companies. Th e response was very positive

and we will host a number of similar meetings in the future.”

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSJULY 2009 ISSUE 58

MAXX LOGISTICS І JAFZA І DUBAI CUSTOMS І GLOBELINK І IATA І BOOZ AND COMPANY


OPPORTUNITY KNOCKSThe latest research points to growth prospects in theMiddle East‘s 3PL sector

THE RIGHT FREQUENCYHow the Middle East haschampioned RFID within the regional postal sector

Why cold storage is a hot market for Global

Shipping & Logistics (GSL)

OTHER LOGISTICS NEWS STORIES IN JULY 2009

• Abu Dhabi Airports Company (ADAC) announced plans to develop a

650,000m2 logistics park at Al Ain International Airport in partnership

with Helios SinoGulf Property Development.

• UPS established a joint venture in Dubai to manage its express

package, freight forwarding and logistics services in the Middle East,

Turkey and certain parts of Central Asia.

• Universities in the United Arab Emirates were encouraged to work with

the Chartered Institute of Logistics and Transport (CILT) to expand the

scope of local education courses in supply chain management.

• Middle East logistics company Agility topped the list of Lufthansa

Cargo’s leading global partners, receiving the airfreight operator’s

‘Planet Award of Excellence’ during a trade ceremony in Europe.

• Globelink West Star Shipping marked its 20th year of operations with

the opening of a warehouse facility at Jebel Ali Free Zone.

• Bahrain promoted its multi-billion dollar logistics credentials at the

European Supply Chain and Logistics Summit in Germany.

• Oman’s Ministry of Manpower issued a special award to Gulf Agency

Company (GAC) to honour its support of the Omanisation process.



DECEMBER 2009

Dubai World Central (DWC), a

multi-phase development project

that includes Dubai Logistics City

and the forthcoming Al Maktoum

International Airport, is “almost

complete” according to Khalifa Al

Zaffi n, executive chairman of Dubai

Aviation City Corporation. Despite

a number of hurdles in the past year,

including the resignation of Dubai

Logistics City’s chief executive offi cer

Abdullah Al Qurashi, the 140 square

kilometre complex has remained on track to launch operations by the

summer of 2010, with the control tower at Al Maktoum International

Airport almost complete and the runway, associated taxiways and

other components “ready to go”, stated Al Zaffi n during Dubai Aviation

City Corporation’s participation at Dubai Airshow 2009.







ANNUAL REVIEW

OCTOBER 2009

Th e global recession has not

deterred the United Arab Emirates

from developing its warehouse and

transportation infrastructure in

the long-term, with research from

Standard Chartered Bank claiming

the logistics industry could emerge

as the country’s biggest asset outside

of oil. Although hydrocarbons is

likely to remain the predominant

contributor to GDP in the short to

medium term – it accounted for

approximately 43% of exports in 2008 – developing other economic

sectors is considered essential to the long-term growth plans of

the UAE. “More than a ‘stop-off ’ point, the United Arab Emirates is

becoming a logistics hub that serves a vast population,” said Philippe

Dauba-Pantanacce, senior economist at Standard Chartered Bank.

“Apart from oil, the country’s central location on the global map is a

natural asset that can be banked upon with certainty in the future.”

OTHER LOGISTICS NEWS STORIES IN OCTOBER 2009

• Jafza International announced a revised plan for its ambitious

development in North America, with the groundbreaking of phase

one being scheduled for the fi rst quarter of next year.

• Wared Logistics formed a partnership with Preferred Freezer

Services (PSF) to develop a network of 12 refrigerated warehouses,

with Saudi Arabia and Egypt being selected for the fi rst facilities.

• BDP Project Logistics supported its Middle East growth by opening

a regional offi ce in Abu Dhabi, with plans to market its services to

the oil and gas, construction and government sectors.

• Momentum Logistics expanded its operations with a container wash

and repair centre at the Sharjah Inland Container Depot (SICD).

• Ehrhardt + Partner Solutions (EPS) launched a research study into

logistics and warehouse solutions for the pharmaceutical sector.

• Th e Supply Chain and Logistics Group (SCLG) hosted a series of

workshops with Patrick Daly from Dublin-based Alba Logistics.

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSOCTOBER 2009 ISSUE 61

AMANA BUILDINGS І TNT EXPRESS І SNS І GAC LOGISTICS І MORGAN INTERNATIONAL


PREVIEW: SITL DUBAIA profi le of the biggest logistics exhibition to hit the Middle East in 2009

BEING CONSTRUCTIVECan the industry measure its health with demand for warehouse construction?

SILENTLEADERGlobelink West Star Shipping steps out of the shadowsto celebrate its 20th anniversary as a logistics powerhouse

Safety standards in the Middle

East logistics industry must be

improved to combat a growing

number of warehouse fi res in the

region, according to research by

Duval Messien. Th e company, which

specialises in earthing systems,

has warned that a recent spate of

warehouse fi res in cities such as

Sharjah and Dubai could have a link

with poor adherence to electrical

fault prevention. In contrast, regions

such as Europe and North America have lowered their incident rates by

introducing stringent regulations for the storage and handling of cargo.

“Temperatures in the Middle East can sometimes hit a sweltering 500C

in summer months, so its not uncommon for earthing pits to dry up in

less than three months,” said Sonjib Banerjee, technical director at Duval

Messien. “Th is increases the risk of warehouse fi res, with even a single

spark being capable of quickly spreading and causing damage to cargo.”

OTHER LOGISTICS NEW STORIES IN NOVEMBER 2009• Aramex conducted a groundbreaking ceremony for its warehouse

facility at Dubai Logistics City, which is scheduled for completion in the

fi rst quarter of 2011 and will include a built-up area of 43,000m2.

• CEVA Logistics continued its Middle East expansion with the launch of

a 12,000m2 facility named ‘Th e Pyramid’ in Jebel Ali Free Zone South,

which will operate as the company’s regional headquarters.

• First Bahrain announced the launch of its latest subsidiary, Majaal,

which is being marketed as the fi rst logistics company in the Middle

East to focus on the small to medium enterprise (SME) market.

• GAC revealed an agreement to bring the core documentation services

of European fi rm Swiss Post Solutions to the Middle East.

• CHEP Middle East opened its fi rst consolidation centres in Bahrain and

Oman to capitalise on growing demand for regional pallet services.

• Th e Chartered Institute of Logistics and Transport (CILT) stated that its

local attendance record was broken with a recent seminar in Dubai.

NOVEMBER 2009NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSNOVEMBER 2009 ISSUE 62

STORALL І ARAMEX І DAMCO І CEVA LOGISTICS І SPAN GROUP І FIRST BAHRAIN


SITL DUBAI REPORTHighlights of the biggest logistics exhibition to hit the Middle East in 2009

CHEMICAL REACTIONThe hidden potential of the petrochemical sector for 3PL service providers

BBriaBr aaaaaB aBr aannnnnn MMMccnnnnnnn HaleHale, ch, chief ief execexecutivutive ofe offi cefi cer, Wr, Waredared Log Logistiisticscs

OTHER LOGISTICS NEWS STORIES IN DECEMBER 2009

• Abu Dhabi-based Invest AD purchased a minority stake in Ekol Lojistik

(EKOL) for US$74.5 million, which will fund a regional expansion for

the Turkish logistics company.

• Senior customs offi cials from the Middle East visited the DHL Express

distribution centre in Bahrain to receive a demonstration of the logistics

company’s security and satellite systems.

• Toll Group expanded its Middle East operations with the acquisition

of Dubai-based company Logistics Distribution Systems (LDS), which

operates from a regional warehouse facility in Jebel Ali Free Zone.

• Logfret was contracted to provide logistics support to the Al Sufouh

Transit System Tranway project, which will include 11 tramways, a

10km track and 13 stations during phase one.

• Etihad Crystal Cargo’s new A330-200 freighter made its maiden fl ight

over France, where the aircraft manufacturer Airbus is based.

• Santis HSE Group was awarded a contract to provide forklift training

sessions for Abu Dhabi Airports Company (ADAC) employees.


T“Award ceremonies in general are important in defi ning the

benchmark for excellence and separating the outstanding achiever from the rest of the group,” continues Baluch. “Th ey also provide recognition to the best performers in the fi eld, while inspiring others to emulate their success.”

Gulf Agency Company (GAC) scored an impressive hattrick at this year’s event, collecting the trophies for 3PL Service Provider of the Year and Corporate Social Responsibility (CSR) of the Year, in addition to Outstanding Achievement of the Year.

Other winners included TNT for Express Logistics Provider of the Year, Unilever for FMCG Supply Chain of the Year, and Ras Al Khaimah Free Trade Zone for Industrial Area of the Year. Also continuing their winning streaks, Dubai Cargo Gateway was declared Air Cargo Hub of the Year, while Dubai Drydocks World was named Shipyard of the Year – making them the only companies that have won their respective categories for three consecutive years.

“Th e standard of nominations at this year’s Supply Chain and Transport Awards was very impressive, highlighting the opportunities that are constantly being presented to ambitious individuals and companies in the Middle East logistics industry,” comments Walid Akawi, chief executive offi cer of ITP Publishing Group, which organised the event. “We look forward to 2010, when the SCATA ceremony will return once again to reward the industry for excellence.”

Supply Chain andTransport Awards (SCATA) 2009

he third annual Supply Chain and Transport Awards (SCATA) took place in the United Arab Emirates this year, with over 200 fi gureheads from the Middle East logistics industry in attendance. Hosted at the Mina A’Salam hotel in Dubai, the prestigious ceremony

was organised in association with Materials Handling Middle East exhibition and featured 17 categories in total, which covered the entire spectrum of supply chain and transportation activities.

“Since its inception in 2007, the Supply Chain and Transport Awards have emerged as a leading event for the Middle East logistics industry. Given the market challenges that our industry is facing on a global level at the moment, this was the perfect opportunity to remember those companies and individuals that continue to achieve excellence on a daily basis,” says Issa Baluch, CEO of Swift Global Logistics, who served his third term on the judging panel this year, alongside Captain Mansoor Ghafoor (CEO of STALCO Group and president of National Association of Freight and Logistics), Dr Kanak Madrecha (senior manager of Dubai World and founding member of the Supply Chain and Logistics Group), Cedwyn Fernandes (MBA programme coordinator at Middlesex University Dubai) and Sebastian Th omas (head of supply chain in ZAFCO).

Th e panel also welcomed the addition of industry icons Salma Hareb (chief executive offi cer of Economic Zones World) and Ali Al Jallaf (vice president of Dubai Airports cargo unit).


ANNUAL REVIEW 2009: SCATA AWARDS

LOGISTICS CATEGORIES

Express Logistics Provider of the Year- TNT Express3PL Service Provider of the Year - Gulf Agency Company (GAC) FMCG Supply Chain of the Year - Unilever

AIR CARGO CATEGORIES

Cargo Operator of the Year (Commercial Airline) - Emirates SkyCargo Cargo Operator of the Year (Cargo Airline/Charter) - Cargolux Air Cargo Hub of the Year - Dubai Cargo Village

SEA FREIGHT CATEGORIES

Port Authority & Terminal Operator of the Year - GulftainerShipping Agent of the Year - Rais Hassan Saadi (RHS) Shipping Company of the Year - Maersk Line Shipyard of the Year - Drydocks World, Dubai

JUDGE’S AWARDS

Material Handling Provider of the Year - SPAN Group Technology Provider of the Year - Ehrhardt + Partner Solutions (EPS) Training & Education Provider of the Year - SP Jain Centre of Management Industrial Area of the Year - Ras Al Khaimah Free Trade Zone Corporate Social Responsibility Award - Gulf Agency Company (GAC)Outstanding Achievement of the Year - Gulf Agency Company (GAC)Hall of Fame Award - His Excellency Sultan Ahmed Bin Sulayem (Dubai World)

SCATA 2009: WINNERS LIST

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ANNUAL REVIEW 2009: AIR CARGO OPERATIONS

PRADEEP KUMAR, SENIOR VICE PRESIDENT OF CARGO REVENUE OPTIMISATION, EMIRATES

How much importance has Emirates placed on its airfreight operations in 2009?Cargo revenue contributes 19% to the airline’s

total transport revenue, which is one of the

AIR CARGOCARGOhighest of any airline with a similar fl eet

makeup. During the 2008-09 fi nancial year,

Emirates SkyCargo carried 1.4 million tonnes of

cargo, which was an improvement of 9.8% over

the previous year’s 1.3 million tonnes, helping

revenue to reach US$2.1 billion.

In general, how strong in the airfreight market in the Middle East at the moment? Th e Middle Eastern economies have remained

quite buoyant during the global recession,

thanks to the sustained high oil prices of

2007/08. We have actually increased our

frequencies to cope with demand this year.

What makes your airfreight operations different from regional competitors? We have a vast network of 101 destinations

around the world, which we serve from Dubai.

In fact, with the launch of our São Paulo service

in October 2007, we became the fi rst carrier

in the world to directly serve six continents

from a single hub. In addition, customers can

benefi t from our short connections times,

young aircraft fl eet and 43,600m2 Cargo Mega

Terminal in Dubai.

What types of shipments are normally transported by Emirates SkyCargo?Everything from perishables, which accounts

for around 25% of our total cargo, to live

animals, outsized project cargo, electronics,

garments, telecoms equipment, machinery,

auto spares, courier mail and valuables items.

What are your predictions for the Middle East airfreight market in the coming year?Th e worst seems to be over and 2010 results

should be positive on 2009. Th ere is currently

suffi cient demand in relation to the capacity

deployed in this region and our volumes are

holding up. If stability continues through the

last two quarters of this fi nancial year, we are

on track to exceed last year’s fi gures.

EMIRATES SKYCARGO

INTERVIEW: DES VERTANNES, EXECUTIVE VICE PRESIDENT OF CARGO, ETIHAD AIRWAYS

How has Etihad Crystal Cargo fared during the recent economic crisis?Despite the challenges of the global slowdown,

Etihad has continued to expand its fl eet and

increase its connectivity around the world,

which has supported the growth of our cargo

operations. In addition, our product range has

also been developed this year, with the launch

of the Xpress2D service, which off ers express to

door delivery to Europe and North America.

Can you provide details on the volume of cargo that has been transported this year? Etihad Crystal Cargo experienced an increase

in our air cargo volumes during the fi rst six

months of 2009, when we transported around

130,000 shipments, with a total volume of more

than 100,000 tonnes.

How large is Etihad’s combined fl eet of passenger and freighter aircraft?Currently, Etihad Airways operates 18 wide-

bodied aircraft, including a number of brand

new Boeing 777-300ER, Airbus A330-200 and

Airbus A340-500, all of which carry cargo in

the bellyhold of the aircraft. In addition Etihad

Crystal Cargo operates one MD11, which can

transport a maximum of 88 tonnes, and two

Airbus A300-600s with a payload of 42 tonnes.

What destinations are served by Etihad Airways after your route expansion?Th e airline serves more than 40 destinations

around the world at the moment and this

number is constantly increasing. Additional

cargo destinations and global charter fl ights

are also served by a growing fl eet of regional

freighter aircraft. Currently, we provide a

range of all-cargo-services to locations such as

Chennai, Frankfurt, Khartoum, Kolkata, Milan,

Mumbai, New Delhi and Zheng Zhou.

ETIHAD CRYSTAL CARGO



Established in 2005, Maximus Air Cargo has

emerged as one of the biggest success stories

in the Middle East airfreight sector.

As part of Abu Dhabi Aviation Group, the

company has a specialist focus on outsized

cargo and wet leasing, with a varied fl eet of

eight aircraft. It’s nickname as the ‘heavy-

lifter of the airfreight world’ came after

Maximus more than doubled its turnover

during 2008 – reaching US$110.8 million

compared to $47.3 million the year before.

Th e airline is now on target to hit sales of

$130 million in 2009, according to president

and chief executive Fathi Hilal Buhazza.

“We achieved exceptional growth during

2008 and the upward trend has been even

steeper in 2009 as we secured additional

short and medium term aircraft wetlease

contracts,” he explains. “Our market share

is growing consistently – from government

and commercial customers – partly due

to increased capacity, but mainly because

of providing responsive, practical and cost

eff ective solutions that combine a personal

approach with innovative service.”

As guest speaker at this year’s Freighters’

World Conference in Barcelona, Buhazza

highlighted the company’s success and told

delegates that the Middle East would be

amongst the fi rst regions to recover from the

global slowdown. “Th is region has clear benefi ts

over others to reach European, Asian and

African markets. Added to this, we also expect

freight traffi c to triple over the next twenty

years. All these advantages, combined with a

sound business model, mean that Maximus

Air Cargo is confi dent and optimistic,” adds

Buhazza. “In just four years we have achieved

so much and despite the global downturn,

the future is looking bright,” he concludes.

MAXIMUS AIR CARGO

MIDEX AIRLINES

Marketed as the fi rst cargo-exclusive airline

in the United Arab Emirates, Midex Airlines

commenced operations in 2008 and currently

serves a total of seven destinations, including

India, Bangladesh, Turkey, Lebanon and

France. Even with a global recession, the

company’s director general Jassim Al Bastaki

says operations have continued to develop at

a bullish pace this year and there are plans

to further increase its aircraft fl eet and cargo

handling facilities at Al Ain International

Airport, as well as introduce new locations

into its global network. “At this stage, it’s

important for Midex to expand its presence at

both regional and global levels,” he says. “Th is

will be achieved by increasing the number of

destinations we reach, developing our fl eet

and raising our investments in the sector.”

Midex Airlines, which exhibited at the

Dubai Air Show earlier this year, currently

operates a fl eet of six A300B4-203F (with

a capacity of 45 tonnes) and one B747-200F

(with a capacity of 100 tonnes).

OMAN AIR CARGO

A long-standing veteran in the Middle East

aviation industry, Oman Air has continued

to invest in the development and expansion

of its airfreight business, with one of the

biggest highlights of the year being its IATA

Operational Safety Audit (IOSA) renewal,

which followed a fi ve-day evaluation into

cargo operations, ground handling, fl ight

systems and aircraft maintenance.

“Oman Air Cargo provides a world-class

standard of cargo service and this year’s

IOSA renewal has once again demonstrated

our expertise in airfreight management,”

explains Sherief Padiyath, general manager

of Oman Air Cargo.

Earlier this year, the local government

raised its stake in Oman Aviation, the

parent company of Oman Air, from 34%

to 82%, investing approximately US$130

million in the company through a private

placement. Th is will provide the foundation

for ambitious expansion over the next four

years, with a major restructuring and re-

branding initiative, together with plans to

double the size of its fl eet and signifi cantly

increase its passenger and cargo routes.

“Despite a global downturn in the cargo

sector, Oman Air Cargo has enhanced its

capacity utilisation and revenue with our

fl eet growth, while developing our global

network with high-frequency services to 31

on-line and 41 off -line destinations around

the world,” continues Padiyath. “We recently

witnessed growth of 55% with our cargo

uplifts in comparison to last year and this

fi gure is expected to further increase over the

coming months, in line with our expansion

plans and new route’s maturity.”

To highlight the growth of its service

portfolio, Oman Air Cargo also took part in the

TransOman logistics exhibition this year, with a

positive response being reported from existing

and future clients. “Th ere was plenty of interest

from our participation in TransOman and we

are exploring a range of business opportunities

as a result,” concludes Padiyath. “It was perfect

timing to support this very interesting period

in our history.”



QATAR AIRWAYS CARGO

As one of the fastest growing airlines in

the world, Qatar Airways has invested a

considerable amount of money to develop

its cargo operations in the past year. Th e

Doha-based airline is currently delivering

to 87 destinations around the world

using its Airbus A300-600 freighters, in

addition to a fl eet of 68 passenger aircraft.

However, with major plans for expansion,

it predicts an increase to 110 aircraft and

120 destinations in the next four years.

Investments have also being ploughed

into technology upgrades in 2009 and

Qatar Airways recently became a regional

associate member of IATA’s Cargo 2000

programme. “Our goal is to increase the

effi ciency and quality of service provided

to the airline’s customers with proven and

agreed processes,” states Akbar Al Baker,

chief executive offi cer of Qatar Airways.

ROYAL JORDANIAN AIRLINES CARGO

INTERVIEW: INGO ROESSLER, VICE PRESIDENT OF CARGO, ROYAL JORDANIAN AIRLINES

How important is the airfreight side of business to Royal Jordanian Airlines?Cargo operations play an important

role in improving the profi tability of our

passenger fl ights, while cargo charters help

to leverage the freighter operations. Royal

Jordanian Cargo’s handling facility is the

main gateway for the majority of airfreight

movements coming to Jordan and we will

continue to invest in providing world-

class services, including e-freight.

Has the Middle East airfreight market performed strongly this year?Th e regional market has been relatively

resilient in 2009. However, we have not

witnessed the growth rates that were

common in previous years. Iraq remains

the exception, where eff orts to re-build the

country have triggered signifi cant demand

for both charters and scheduled services.

Royal Jordanian has been the network

leader to Iraq for many years, operating

scheduled fl ights to Baghdad, Basra, Erbil

and Suleymania, with more to follow.

What types of shipments are normally transported by Royal Jordanian Cargo?Major exports from Jordan are vegetables

and pharmaceuticals. Otherwise we move

everything from automobiles to zebras.

What makes your airfreight operations different from regional competitors? Royal Jordanian has traditionally been

considered a technology leader in the Levant

area. Th erefore we introduced a best-in-class

cargo information system supplied by CHAMP

Cargo Systems earlier this year. We are also

working with IATA at the moment to join the

e-freight initiative by early 2011. Th e technical

infrastructure is available with forwarders and

RJ, but some legislative issues are holding us

back from becoming “early adopters” in 2010.

What are your predictions for the Middle East airfreight market in the next year?Th e Middle East will remain a buoyant market

for air cargo operations and achieve growth

rates that are above world-average, which

will benefi t airlines such as Royal Jordanian.

A strong recovery of the Iraq economy will

further boost this growth, as will a greater level

of liberalisation in the region as a whole.

Saudi Arabian Airlines privatised its cargo

operations earlier this year and, now an

independent entity, the division has been

renamed Saudi Airlines Cargo Company.

With central facilities in Riyadh, Jeddah

and Dammam, the company operates a fl eet

of Boeing MD-11 and 747 freighters to various

destinations in Asia, Africa, Europe and the

United States. It has also continued to use cargo

capacity on the scheduled passenger fl ights of

Saudi Arabian Airlines.

“Th e strategy for Saudi Airlines Cargo

Company in 2009 has included the expansion

of our network in the Middle East and other

markets around the world,” explains Fahad

Hammad, chief executive offi cer of Saudi

SAUDI AIRLINES CARGO COMPANY

Airlines Cargo Company. “In addition, we

have continued to restructure and develop

our information technology systems.”

Over the past fi ve years, Saudi Arabian

Airlines has experienced an average growth

of 5% in airfreight volumes, while its revenues

exceeded US$560 million in 2008. Hammad

believes the privatisation will allow this

momentum to continue and lead to a series of

new commercial alliances. “We are confi dent

that Saudi Airlines Cargo Company will

continue to increase its freight volumes,

maintain its leading role in air cargo within

the Middle East and overcome the challenges

that have been presented by current global

economic uncertainties,” he concludes.


INTERVIEW: GARRY KEMP, DHL AREA DIRECTOR FOR THE MIDDLE EAST, NORTH AFRICA AND TURKEY

How has DHL Express performed in the Middle East over the past year? Over the last 12 months, we have continued our

focus on providing reliable, fast, effi cient and

secure solutions for customers in the Middle

East and beyond. It’s been a challenging year

though, as the economic diffi culties arrived in

the Middle East later than across Europe and

the United States. Almost all businesses across

the globe have been aff ected in some way by the

economic crisis and many of those businesses

are our loyal customers.

Have you adopted a particular approach to tackle the market downturn?We took the global economic crisis in our stride

and focused our energies on logistical and

operational process effi ciency, as well as airline

safety and standardisation. At the same time,

we ensured employees were satisfi ed and able

to perform at their best in 2009.

What factors have helped to improve your operational effi ciency in the Middle East?Th e new infrastructure that was put into

place in 2008, including our facilities in Jordan

and Jebel Ali Free Zone, have made a positive

impact on DHL’s service, both in the region and

throughout the world. Due to the geographical

location of Jordan, the new hub has improved

our regional infrastructure and increased the

transit speeds of goods travelling via road. Th e

launch of Aerologic, a joint venture cargo airline

of DHL Express and Lufthansa Cargo, in 2009

has also strengthened DHL’s aviation network.

Our new B777F is now in operation connecting

Bahrain to the European aviation network.

Have there been other focus areas for DHL during the global recession?Our focus on expediting and streamlining

processes in 2009 was coupled with eff orts

to boost our safety standards in the region,

which resulted in a number of milestones. For

EXPRESSLOGISTICSLOGISTICS

example, DHL Aviation EEMEA earned

IATA Operational Safety Audit (IOSA)

certifi cation, which uses internationally

recognised quality audit principles to

assess the safety of airlines. Th e entire

team at DHL Aviation EEMEA, which is

based in Bahrain, worked hard to achieve

this certifi cation and demonstrate our

commitment to quality and safety.

Any other highlights from 2009?DHL Express received the ‘Best Company

to Work For’ award in Saudi Arabia earlier

this year in recognition of employment

practices and high working standards

for employees. Nour Suliman, general

manager of DHL Express KSA, was

presented the award by Prince Faisal

bin Salman, chairman of Saudi Research

and Marketing Group, during a special

ceremony in Riyadh.

With courier companies facing pressure to

evaluate their service portfolio as a result of the

global recession, Empost made a decision to

revamp its global delivery services earlier this

year, with a maximum discount of 50% being

introduced for express transportation to more

than 200 destinations around the world.

“Since we recently started a major expansion

of international services, Empost wanted to

reward our customers with a substantial rate

reduction,” explains Sultan Al Midfa, CEO of

Empost. “Th is off er was part of a new strategy

to expand our customer base through value

additions and upgraded standards.”

Under the revised service, customers can

send items of non-commercial value, such as

letters, books and brochures, for time-defi nite

and customs cleared door to door delivery,

with shipments being collected by courier staff

without extra charges. “We are fully focused on

emerging stronger after the recent slowdown

that has aff ected every sector, every industry,”

Al Midfa adds. “We believe these new rates will

help to boost our relationship with customers.”

To keep its customers updated on service

upgrades, Empost also introduced a number

of functions to its website in the summer,

including shipment tracking, rate calculator,

online booking and invoice printing. “We have

adopted the latest technology for our website

and will launch several more online off erings in

the near future,” concludes Al Midfa.

EMPOSTDHL EXPRESS

ANNUAL REVIEW 2009: EXPRESS LOGISTICS



INTERVIEW: HAMDI OSMAN, SENIOR VICE PRESIDENT OF FEDEX IN THE MIDDLE EAST REGION

How do you think the global recession has impacted Middle East logistics companies? Th e situation has led to tough times for

companies in this sector, from small to medium

sized businesses and even the big players.

However, the reason some have faced problems

or shut their operations is because somewhere

or somehow they failed to pay attention or listen

to their customers and this is something that

FedEx has done very well over the years. We have

been a good model for other companies because

we are dedicated to the needs of customers.

FedEx was awarded by Sheikh Mohammed Bin Rashid Al Maktoum this year. Was that a major highlight in the past year?Yes defi nitely. We were honoured at the

Sheikh Mohammed Bin Rashid Al Maktoum

Business (MRM) Awards in the Corporate

Social Responsibility (CSR) and Supply Chain

Excellence categories. Th e entire team was very

proud to be recognised for this contribution to

the market, because FedEx always seeks to off er

the best in fl exible and innovative solutions.

Can you provide an example of a regional innovation that FedEx has introduced for Middle East customers in 2009? Earlier this year, we pioneered a new, state-of-

TCS EXPRESS

INTERVIEW: MAZHAR AYUB KHAN,HEAD OF INTERNATIONAL FREIGHT AND LOGISTICS AT TCS EXPRESS

How do you think the Middle East logistics industry has fared in 2009?Th e global recession had a major impact

on logistics operations in the Middle East,

especially Dubai, and while the initial panic is

starting to fade away, it will take years to bring

the confi dence back to this shattered market.

In particular, the crisis has taken its toll on

the bottom line of express mail and courier

companies, and while some have made claims

about marginalise growth, the results have

been grim for several others in the industry.

What challenges have recently been faced by TCS Express in the Middle East?It’s been a year of struggle, although we benefi ted

from an early reaction to market challenges,

which helped to improve our bottom line by 5%

from January to September 2009. In addition,

we opened a new outlet in the Deira district of

Dubai to facilitate our growing customer base.

Have new services been introduced by TCS Express in the past year?Yes. Dubai Metro has become a reality in

2009, thanks to the visionary leadership of

the emirate. As a result, we have introduced

this new transportation mode to our delivery

network for packages and other items, with a

dedicated team of On Train Couriers (OTCs)

being appointed. Th is will ensure a faster

delivery for customers and also reduce the fuel

emissions of TCS Express.

Any other highlights from 2009?TCS further supported our Social Corporate

Responsibility (CSR) initiatives this year by

hosting students that are learning about trade

and transport from international universities

and business schools. Our sixth batch from

France recently completed their research work

and earned their certifi cates for placements.

Th ere are very few logistics companies in this

region that have the capacity to off er vocational

trainings for international students and luckily

we are amongst the only ones in the Middle East

to date.

FEDEX

the-art desktop tracking tool to provide

customers with real-time visibility

on the status of their shipments.

Available in the United Arab Emirates,

Bahrain and Kuwait, FedEx Desktop

marked the latest advancement in our

commitment to customer innovation,

with functions such as a ‘drag and drop’

feature, which allows customers to drag

details of their shipment onto their

desktop, or the ability to give shipments

‘nicknames’ to help with tracking

purposes. Users that don’t want to

see the programme on their desktop can

let the application run in the background

and receive critical alerts via a pop-up.

FedEx also hosted its fi rst Grand Prix Experience in Dubai this year. What was the purpose of this event?Th is was held towards the end of the year

and proved a great success. It provided

our guests with the opportunity to

test their driving skills in a range of

automotive challenges, such as karting,

high-speed taxi-ride driving and obstacle

course tests. Teamwork, speed and a

relentless commitment to be the best are

core FedEx values that were also present

at this inaugural event.

What are your future predictions for the Middle East courier market?Th e market has a huge amount of

potential in the Middle East and other

emerging markets. I believe it will

continue to develop at full pace as soon

as global trade gathers momentum.



UPS

TNT Express has reported a limited impact

from the global recession in the Middle East,

with country manager Bryan Moulds hailing

its regional business performance as “better

than expected”.

Th e company, which was named Express

Logistics Provider of the Year at the Supply

Chain and Transport Awards (SCATA) 2009 in

Dubai, has benefi ted from recent investments

in the Middle East, including the expansion

of its road network and launch of a dedicated

US$11 million facility in Jebel Ali Free Zone. As

a result, it has secured a number of lucrative

contracts in the past year, including a two-

year agreement worth $1.6 million per annum

to provide Volvo Middle East with express

distribution services. Other signifi cant wins

have included Dubal and Hewlett-Packard.

“Like everyone else in the world, we braced

ourselves for a hit this year, but we are glad to

say it never came,” states Moulds, who heads

TNT’s operations in the United Arab Emirates.

“Logistics, like any other service provider, is

traditionally one of the fi rst to be reviewed. But

it seems that stable volumes, combined with

a few great contract wins, have kept us on our

growth trend in the region. In a way, the recent

economic challenges have led us to create a

stronger, wider and more robust operation.”

Despite a slowdown in the courier

sector, United Parcel Service (UPS)

managed to boost its market share in

the Middle East this year by launching

a range of express delivery solutions. In

particular, its domestic express service

was introduced inside the UAE and 15

additional countries across Europe,

Africa, the Middle East and Latin

America, enabling shippers in these

countries to consolidate their package

delivery services with one carrier to

eliminate multiple shipping processes

while reducing their overall costs.

“Every industry or market is unique

and has its own challenges, which

can hinder the smooth fl ow of work.

In order to eff ectively address these

issues in 2009, we concentrated on

providing fl exible delivery solutions

that are in tune with the demands of

our customers businesses,” explains

John Tansey, general manager of UPS

in the UAE. “With the domestic express

service, customers are able to use the

same technology platform for tracking,

visibility and billing of domestic and

international shipping.”

In the midst of a challenging

economic environment, UPS also

continued to pioneer the concept of

social corporate responsibility in the

logistics industry, with donations being

made to Al Noor School for Special

Needs and 88 - Making a Diff erence,

a non-profi t organisation that promotes sports

and physical activity amongst children.

In October, UPS also announced a multi-year,

multi-million dollar initiative to improve the

capabilities of relief organisations to respond

to global emergencies. Th e eff ort, which will

involve both UPS and Th e UPS Foundation,

begins with a commitment of US$9 million over

the next two years in the form of substantial

fi nancial grants, in-kind services and the

deployment of logistics expertise.

“As part of our continued commitment to

sustainable business practices, we are also

seeking ways we can contribute to a cleaner

environment,” continues Tansey. “We are

looking, for example, to implement existing

solutions and best practices from our business

units and operations in North America and

Europe into our Middle East operations.”

Th e highlight for UPS this year was the

announcement that Dubai had been selected

as the home-base for its latest joint venture,

which has been launched to coordinate the

growth of the company’s express package,

freight forwarding and logistics services in

the Middle East, Turkey and parts of Central

Asia. Although specifi c terms of the agreement

were not disclosed, UPS will assume a majority

stake in the project and has acquired the

small package operations of Unsped, its

existing service agent in Turkey. “Demand for

3PL providers is increasing in the region and

this trend is likely to continue next year, as

companies seek effi cient means of transport

through trusted carriers,” concludes Tansey.

TNT EXPRESS


ANNUAL REVIEW 2009: THIRD PARTY LOGISTICS

Over the past 30 years, Agility has emerged

as a leading global provider of integrated

logistics solutions and 2009 marked another

breakthrough year for the company, with more

than 37,000 employees and over 550 offi ces now

in place throughout the world. “Th is has been

an interesting year in the context of the wider

global fi nancial crisis impacting on industries

and markets throughout the world, including

that of logistics,” states Elias Monem, Agility’s

CEO in the Middle East and North Africa.

“However, we have defi ed the downturn and

posted an estimated 5% increase in operating

profi ts for the fi rst six months of 2009.”

Agility has been very active with

infrastructure developments in the Middle

East this year, including the completion of a

60,000m2 facility in Jebel Ali and 40,000m2

warehouse in Riyadh. Th e company also

signed an MOU with GWC in Qatar to further

strengthen its local and regional division,

which was more than justifi ed considering its

major contract to provide RasGas with supply

chain solutions in the country.

“We have a strong balance sheet, which will

allow us to navigate through these challenging

times,” adds Monem. “Over the next few months,

we will be reviewing our plans and new external

opportunities to determine if the timing is right

to accelerate our eff orts or take advantage of

new market conditions.”

THIRD PARTY LOGISTICSLOGISTICS

AGILITY

Established in the 1980s, Al-Futtaim

Logistics has become a regional

provider of supply chain solutions

with a truly global reach, off ering a

range of supply chain solutions that

extend to freight management and

customs brokerage, warehouse and

inventory management, domestic

and international transportation and

value-added services. “We believe in

continuous improvement and that’s

the reason Al-Futtaim Logistics is

now recognised as one of the leading

logistics service providers in the

region,” states Tom Nauwelaerts, head

of Al-Futtaim Logistics. “More than 700

people are currently employed by the

company and we operate warehouse

facilities totalling 2 million square feet,

together with a transport fl eet of over

200 vehicles.”

Growing so strongly has posed

many challenges in 2009, according

to Nauwelaerts. “During the past year, where

growth has been moderate, we have taken

this opportunity to catch up and prepare for

the next level of growth in the UAE,” he says.

“We have re-organised our company structure

and re-aligned our capacity and underlying

infrastructure. A lot of eff ort has gone into

fi nding new ways of minimising our costs and

increasing the effi ciency of our operations.”

Nauwelaerts is a strong believer that the

logistics business is all about having the right

people. As a consequence, he has focused on

making sure the company attracts and retains

the best people in the market. “In particular,

training and development is considered as

essential to enhancing customer satisfaction

and effi ciency of our operations,” he says.

“In addition, Al-Futtaim Logistics has been

developing along three main axes, being the

build of new warehousing, the expansion of our

in-house transport fl eet, and the establishment

into new regions where the wider Al-Futtaim

Group has grown in the past years.”

AL-FUTTAIM LOGISTICS



AL MADINA LOGISTICS

At a time when the global recession has

raised alarm bells for the logistics industry

in developed markets such as Europe and

the United States, it seems the Middle East

is still considered a viable region for market

growth in the coming years. In particular,

the Sultanate of Oman has been identifi ed as

a hidden gem for the regional freight sector,

with a recent report by Business Monitor

International (BMI) forecasting an average

increase of 4.5% per annum between

2006 and 2010, which has already proved

benefi cial for homegrown players such as Al

Madina Logistics Services (AMLS).

Th e company has grand ambitions to

establish a warehouse network throughout

the Sultanate, which will measure 275,000m2

in total and host a complete range of

supply chain solutions, including storage,

transportation and consultancy services.

“We’ve reached a fundamental stage in

our development strategy. In addition to

evolving the AMLS service portfolio to meet

customer needs, we’re laying the foundation

for short-term and long-term growth,”

explains Mahmood Sakhi Al Balushi, chief

executive offi cer of AMLS.

Although the warehouse developments

have been identifi ed as the centre pieces

of the company’s development strategy,

they will be complemented by a major fl eet

expansion, technology overhaul and entry

into other Middle East markets within the

space of a year. “Th ere are diff erent aspects

to our planned development, but everything

is connected and will be conducted in a

seamless manner,” adds Al Balushi. “For

example, our coverage was extended to the

entire GCC region in the fourth quarter of

2009, with our fl eet being increased to over

300 vehicles. A major technology investment

was also confi rmed this year to bring each of

these operations together.”

AL MAJDOUIE

ARAMEX

SYED MUSTAFA, VICE PRESIDENT OF ALMAJDOUIE LOGISTICS

What has the global recession impacted Al Majdouie Logistics in 2009?Logistics has been aff ected around the

world by the economic downturn, including

the Middle East. However, Almajdouie has

qualifi ed and experienced people that can

identify market opportunities, regardless

of wider challenges. Lots of companies are

screaming about the recession, but others,

including our company, take a pause to

evaluate themselves and consider the

situation as a chance to progress.

What factors have supported your recent growth as a logistics service provider?We have fuelled our expansion with a

number of joint ventures, including a

Riyadh-based project with Sinotrans and

also Maxx Logistics in Dubai. Th at project

has been particularly aff ected due to

economic crisis, but its customer base has

steadily grown and I believe it will experience

a considerable amount of success next year.

What has been your focus for 2009?Traditionally, Saudi Arabia has been the

Aramex has crossed a number of milestones

in 2009, including the launch of several new

products and services, the introduction of

new locations into its network, and a trail

of recent partnerships and acquisitions. Th e

results from this action-packed year have

spoken volumes for the logistics company’s

success, with a 24% increase in net income

for the fi rst nine months of 2009, compared

to the same period in 2008.

“Th ese fi nancial results have been a

testament to our business model, our

resilience and our continued ability to

perform well in challenging economic

conditions,” says Hussein Hachem, Gulf

CEO of Aramex. “Although the fi nancial

performance has been going from strength

to strength, the key drivers of our success

continues to be the entrepreneurial spirit

of employees and the fl exibility of our multi

product off ering.”

Recent product launches have included

Value Express, an economical solution for

express shipments within the Middle East,

North Africa and South Asia. Th e company

strongest market for our heavylift business and

we have maintained a market share of between

67% to 93% for last nine years. However, we now

believe that our market share should not exceed

60% in this country, so that the focus can shift

to other parts of the region, with major

contracts recently being secured in Abu Dhabi,

Dubai and Bahrain.

How has the regional market changed since Al Majdouie started operations?When we started, local companies did not

understand the concept of outsourcing their

supply chains. We had to education the market.

However, businesses are more educated now

and understand the importance of logistics.

also expanded its delivery channels for local

express services in the United Arab Emirates

with Dubai Metro being introduced into its

transport network. Local operations were also

boosted by the ground breaking of Aramex’s

new warehouse in Dubai Logistics City, which

is scheduled for completion in the fi rst quarter

of 2011. “Th is facility will further develop our

capacities in the region and we are also looking

at expansion opportunities in emerging

markets, especially in Africa and Central Asia

in the coming year.”

21



CEVA Logistics has a network of 19 offi ces in

the Middle East and North Africa (MENA),

with plans to invest US$800 million for a major

regional expansion. Part of this budget was

allocated for the launch of its 12,000m2 regional

headquarters in Jebel Ali Free Zone earlier this

year. “Our customer base has signifi cantly

expanded in the Middle East over the past year

and we’ve experienced strong demand for the

oil and gas, industrial, automotive, fast moving

consumer goods (FMCG) and technology

sectors,” says Gianfranco Sgro, president of

CEVA Logistics in South Europe, Middle East

and Africa. “Th e publishing market is also

emerging, especially for books and magazines in

countries such as the UAE and Saudi Arabia.”

CEVA LOGISTICS

South Africa’s Barloworld Logistics made a

grand entrance into the Middle East logistics

industry in 2008 by acquiring Swift Freight

International, a leading regional freight

forwarding company. Since the business deal,

Warren Erfmann, CEO of Barloworld Logistics

in the Middle East and Asia, has taken the reins

to steer the company towards future growth.

“Th is has been a very exciting and challenging

year. Although there is still much to be done, it

is encouraging to see the progress that has been

made with Barloworld Logistics in the Middle

East, with re-branding activities, restructuring

and various operational enhancements to

streamline operations and enhance

services according to the Barloworld

Logistics standard.”

Swift Freight recently marked its 20th

anniversary and Erfmann is adamant

that even under Barloworld Logistics

management, their offi ces will continue

to focus on areas that made the company

one of the leading freight forwarders in

the region. “A major reason Barloworld

Logistics acquired Swift was its extensive

African network. Swift went into Africa

when the continent was experiencing

turbulent times, with a strategy and a lot

of passion. It has been a pioneer in Africa

in many ways, being one of the fi rst

companies in the UAE to see the huge

potential of the continent,” he states.

“Th e fact that Swift always had a clear

strategy for Africa, with Dubai being used

as a hub to facilitate trade, has without

doubt helped the company to be a market

leader on this trade lane. Now, 20 years

later, Swift continues to thrive in the

African market, which is a culmination

of many years of extremely hard work

and gritty determination.”

BARLOWORLD LOGISTICS

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INTERVIEW WITH ROLF HABBEN-JANSEN, GLOBAL CEO OF DAMCO

Can you provide a backdrop to this year’s merger of Maersk Logistics and Damco?Basically, the A.P. Moller-Maersk Group made a

decision to combine its Maersk Logistics brand,

which focuses on supply chain management

activities, and its Damco brand, which deals

with freight forwarding. As a result, both of

these entities were merged on a global basis

and commenced operations under the single

Damco brand from 7th September 2009.

To what extend have Maersk Logistics and Damco operated in Middle Eastern countries before the merger took place?We have a regional offi ce in Dubai, which is

supported by a network of other offi ces in

countries throughout the Middle East, such

as Bahrain, Saudi Arabia, Qatar and Oman.

Together, these facilities have provided a range

of services to customers in the region, from

basic freight forwarding to advanced supply

chain management, which have been off ered as

both Maersk Logistics and Damco. Following

the merger, the entire spectrum of services will

be operated under Damco.

How important is this region for Damco?We have traditionally placed a great deal

of emphasis on emerging markets and that

includes the Middle East. In fact, I would state

that from a global perspective, our share of

the emerging markets is probably second-to-

none. Th e only international player that comes

close would be Agility. So yes, the Middle

East is important, although our presence

could be stronger and we defi nitely have high

expectations for developing here in the future.

DAMCO

DANZAS

INTERVIEW: ERIC PILLING, COUNTRY MANAGER OF DANZAS

How important is the Middle East to the global operations of Danzas?Th e Middle East is one of the most dynamic

regions in the world and has been recognised

as a leading hub for logistics operations by a

number of diff erent industries, including the

life science, automotive and technology sectors.

Danzas and its parent company Deutsche

Post World Net are committed to providing

our customers with the best possible service

in this region to help support their growth

aspirations. Th is is driving our investment in

new infrastructure across the Middle East.

How has this investment been spent?In November last year, we opened a 80,000m2

warehouse in Dubai’s Jebel Ali Free Zone,

which is the largest of its kind in the

Middle East. Th e facility has been valued at

approximately US$50.4 million and includes

a built-up area of 54,000m2. It is fully air-

conditioned and has been equipped with

world-class security infrastructure, which

will be certifi ed under the Technology Asset

Protection Association (TAPA) guidelines.

Which industries are you targeting with this warehousing facility?Our primary market is the pharmaceutical

industry, since we have experienced a

growing amount of demand from this sector

in the Middle East. Th e facility has cold chain

functionality to better serve the unique

requirements of the healthcare market. A

number of value-added services will also be

provided, such as labelling and kitting.

Any other highlights from this year?Danzas recently opened an offi ce at the

Dragon Mart retail complex in Dubai and

had 50 of our Asia-based customers attend

a special launch ceremony at the facility. We

have also spent a lot of time in looking for

the right employees and actively promote

the Middle East as a place where we want to

develop people’s careers. We are aggressively

going through our global network to attract

the right sort of talent to this region.

DB SCHENKER

DB Schenker continued its Middle Eastern

expansion with the launch of Schenker

Saudi Arabia this year, which will focus on

warehousing and transportation services in

the Kingdom. Th e company has previously

been represented by a network of partners

in Saudi Arabia, but opened a separate

entity on 1st March 2009, with a central

offi ce in Riyadh and additional facilities in

Dammam, Jeddah and Al Jubayl. “Schenker

Saudi Arabia is fully integrated into DB

Schenker’s worldwide network and off ers a

full range of logistics services, with a major

focus on the project logistics business,” says

Dr Detlef Trefzger, member of Schenker

AG’s management board for contract

logistics and supply chain management.

“Th is is one of the most interesting growth

markets for global network and logistics

activities and there are plans to set up

other national companies and cooperation

agreements in order to further deepen and

expand the business.”

Has the recession impacted your growth?We have been aff ected, although there has

been a level of recovery and our key objective is

returning to growth in the coming months.

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GAC LOGISTICS

Earlier this year, GAC expressed a “quiet

confi dence” that its global empire of

shipping, marine and logistics services

would experience a limited impact from

the continued recession. Now, with 2009

drawing to an end, the Middle Eastern

company maintains its stance and believes

a market recovery is around the corner.

“GAC has developed a diverse service

portfolio, and built up strong customer

base which put us in good stead,” states Bill

Hill, group vice president, GAC Logistics. “It

is important that we stick to our strategy

and not compromise on service standards.

We stay competitive by improving the

operational effi ciency. We also stay close to

clients, understand their predicaments and

off er cost-eff ective solutions to help them

weather the storms of the economic slump.”

Several clients had enhanced their

partnership with the 3PL provider this year

– testament to their confi dence in GAC’s

services. Th ese include pharmaceutical

distributor Zuellig Pharma, which renewed

its decade old relationship with GAC,

and paediatric nutrition company Mead

Johnson, which appointed GAC to handle its

Philippines/Th ailand trade, in addition to

its 3PL requirements in Th ailand.

GAC also maintained its leadership in

special events logistics, handling concerts

for the likes of Coldplay and Duran Duran,

while it also launched GAC Sports Logistics,

which lent its expertise to the MotoGP in

Qatar and the International Boat Show in

Bahrain. “Th ese projects have all contributed

to our success,” says Hill. “It shows that we

take a long term approach to business, and

continue to invest and expand to meet the

requirements of customers.”

GEODIS WILSON

SASCHA GEIKEN, UAE MANAGING DIRECTOR OF GEODIS WILSON

Can you summarise Geodis Wilson’s position as a logistics service provider?Geodis Wilson is part of the Geodis Group,

which has around 26,000 employees in total,

spanning 12 countries around the world.

We’re currently ranked as a top fi ve player in

the European logistics market.

How important is the Middle East as a market to your global operations?Th e region has emerged as a popular

location for supply chain activities and we

have selected Dubai as a strategic hub for

both contingent markets and door-to-Africa

shipments. More importantly, the emirate

has also become one of the three major sea

and air cargo hubs within our network.

To reinforce this development, a number

of UAE management appointments were

announced this year, including my position

as managing director for operations.

What are your primary objectives as managing director of the company?I am based at Geodis Wilson’s regional

headquarters in Dubai with responsibility

Th e current slowdown in the logistics sector

is the fi rst that Global Shipping & Logistics

(GSL) has encountered since its launch in

2006. Until now, the sector has remained

a lucrative playground for 3PL companies,

with growing demand for warehousing and

transportation services throughout the

Middle East. However, these glory days have

been painfully jeopardised by the global

recession and while the market has not

crashed, the majority of logistics companies

have adopted a cautious approach towards

development plans. In complete contrast,

the recent expansion of GSL’s warehousing

complex in Dubai Investment Park has

proved that it’s business as usual for the

relative newcomer, which has captured

a sizeable share of the UAE’s market for

temperature controlled and cold storage.

“Th e expansion was necessary because

our initial facilities were operating to full

capacity and demand was continuing to

increase,” says Khalid Al Shirawi, executive

director of GSL. “In response, we decided

to double our warehousing size in phase

for customer relations in the Middle East. In

addition, I will overlook the long-term growth

of our freight management and supply chain

services, with a team of around 70 employees

in Dubai and Abu Dhabi.

How do you plan to develop your regional operations in the coming years?Th e UAE, Kuwait and Saudi Arabia are

important markets and we will continue to

develop the best platform to support the needs

of customers. We are looking into new offi ces

in Abu Dhabi and Saudi Arabia, as well as

strengthening our existing offi ce in Kuwait.

two and the space has almost been booked

already. Th e response is truly overwhelming

and our thoughts are quickly turning to a third

phase of development, which will commence

next year and should be completed in 2011.

We are also contemplating an expansion into

neighbouring countries, because clients are

asking for our business model to be brought

into other markets in the region.”

GLOBAL SHIPPING & LOGISTICS (GSL)

25



GLOBELINK WEST STAR SHIPPING

A limited number of companies have

experienced the Middle East logistics industry’s

roller coaster of highs and lows in the past 20

years. However, launched in October 1989 - and

celebrating its second decade of operations

this year - Globelink West Star Shipping has

emerged as a veteran trading house in the

region, with plenty of experience in succeeding

during the good times and the bad times.

At the helm of this remarkable journey

is Martin Aranha, who launched West Star

Shipping in the late 80s with ambitions to

create a leading specialist in shipping, LCL

groupage and freight forwarding. Like many

of its peers, the dream venture started with

humble beginnings, mainly consisting of three

employees working around the clock to increase

its brand presence, develop a competitive

advantage and receive acceptance from both

customers and vendors. Th e goals might have

seemed ambitious, but their relentless eff orts

paid off , with the company now employing

over 540 people in the United Arab Emirates,

supported by a network of offi ces throughout

the country and turnover of US$165 million

in 2008. “I guess we are a perfect example

of the Dubai dream,” laughs Aranha when

questioned about this success story. “It’s

been a steady process though and we have

continuously grown over the years to reach

our current position as market leader.”

Globelink West Star Shipping has a

central headquarter in Bur Dubai, with

supporting offi ces and warehouse facilities

in Jebel Ali Free Zone, Dubai Cargo Village,

Dubai Airport Free Zone, Al Quoz Industrial

Estate and Dubai Investment Park, in

addition to Sharjah and Abu Dhabi. Th e

most recent addition to this network is a

fl agship warehouse in Jebel Ali Free Zone

South, which was inaugurated in June 2009,

featuring 96,000 square feet of warehouse

space and 12,000 square feet of fully-covered

outdoor storage. “Th e opening of this facility

was another milestone in our history,”

explains Aranha. “It’s only been a couple of

months, but the business from this facility

has already exceeded our expectations and

received a warm response from the market.”

A further expansion of the company’s

warehouse network is planned in the coming

year, including a soon-to-be-opened facility

in Kuwait, followed by the Kingdom of Saudi

Arabia and Qatar. In addition, investments

will continue to be ploughed into its home

market in the United Arab Emirates. “Our

offi ce in Abu Dhabi has been growing by

leaps and bounds, so we plan to launch a

facility in the emirate. We have also booked

for a shared forwarders warehouse (SFW)

in the Dubai Logistics City project, which is

very exciting for our development.”

WERNER KLEYMANN, MIDDLE EAST MANAGER OF KUEHNE + NAGEL

What range of services does your company provide to customers in the Middle East?We off er the full range of Kuehne + Nagel’s

services, including contract logistics,

seafreight, airfreight and overland transport,

as well as services for the oil and gas industry

and project forwarding. We are also well versed

in niche products, such as hotel logistics,

humanitarian relief and marine logistics.

How strong is demand for 3PL services? Demand has remained strong and from our

KUEHNE + NAGEL

side, if there has been an upside to the global

situation, it’s that the customers are now

more interested in the overall savings that

can be made as opposed to a few dollars on

international transportation.

What are K+N’s local development plans?Recent developments include the purchasing

of our JV partner’s stake in Saudi Arabia and a

major new warehouse in Dubai Logistics City,

which off ers us with a platform to provide

customers with distribution services across the

region and drastically reduce lead times. Our

future strategy will involve further investments

across the Middle East region.

HALA SUPPLY CHAIN SERVICES (HSCS)

Hala Supply Chain Services (HSCS) has

been bursting with activity in 2009, with

a regular series of announcements being

reported throughout the year. Amongst

the highlights was a partnership with

technology companies Psion Teklogix

and SNS, the launch of its Saudi Arabian

Supply Chain Intelligence Report 2009, and

a contract to design and project manage

the construction of a 15,500m2 logistics

complex for a tyre manufacturer in Jeddah.

“Our marketplace is changing fast due

to high levels of growth and the proactive

eff orts made to transform the economy,”

explains Husam Al-Saleh, general manager

of Hala Supply Chain Services. “We have

uniquely positioned ourselves to help

clients improve their supply chains and

achieve sustainable competitive advantage.

Our ability to grow is in proportion to our

ability to create value for our clients in these

challenging circumstances.”



MAJAAL

First Bahrain recently launched Majaal, its

latest subsidiary that is being marketed as

the fi rst logistics company in the Middle East

to focus on the small to medium enterprises

(SME) market. Th e venture was unveiled

during a special ceremony at the Ritz

Carlton Bahrain Hotel in October 2009 and

will operate from a US$45 million logistics

complex at Bahrain Investment Wharf, in

close proximity to Shaikh Khalifa Port.

“Majaal will off er secure and cost eff ective

storage solutions, tailored specifi cally to

meet the needs of the small to medium

enterprises (SMEs),” states Amin Al Arrayed,

general manager of First Bahrain. “Th is

venture is also unique because it off ers more

than just storage solutions. It incorporates

a number of value added features, such as

fi t-out support, racking installation and a

business centre from where customers can

receive logistics support and rental options

for forklifts and other support vehicles.”

First Bahrain is planning to market its

Majaal brand across the Middle East, with

hopes of expanding the company through

franchises in countries such as the United

Arab Emirates, Saudi Arabia and Qatar.

MODERN FREIGHT COMPANY (MFC)

NICK TROTT, GENERAL MANAGER, MODERN FREIGHT COMPANY (MFC)

When did Modern Freight Company (MFC) fi rst establish its operations?Our operations commenced in Dubai

over 30 years ago as a liner agent, but we

have since transformed into one of UAE’s

leading logistics companies, with a central

headquarter and three warehouses in

Jebel Ali Free Zone, together with offi ces in

Dubai, Sharjah, Abu Dhabi and Doha.

How has the company performed during the global recession in 2009?Like all companies in the industry, MFC

has been aff ected by the crisis. However, we

have been able to weather the storm very

successfully due to the diverse nature of

our business activities. With the slowdown

in cargo moving by sea and air, it has been

the logistics division where MFC has fared

better than many local Dubai companies. In

fact, our container depot operation has seen

an excellent growth during the year, not

just from the local clients, but from clients

abroad. However, 2009 has not all been

about business growth. It has been a period

to refl ect on improving the way in which

MFC conducts business.

What have been the highlights of the year in terms of regional operations?MFC has procured more warehousing

capacity in Jebel Ali Free Zone to cater to

the needs of our clients. In addition, we

recently installed solar panels at our new

canteen and prayer facility in Jebel Ali Free

Zone. Th is will not only reduce costs quite

signifi cantly, but will also help to reduce our

carbon foot print. We did not stop there. Being

a quality driven company, MFC is now moving

towards the health, safety and environment

accreditation of ISO 14001 and OHSAS 18000.

We have already trained our 250 staff and

commenced the full risk assessment, which

should result in accreditation by 2010.

What are your predictions for the company in the coming year?It was almost impossible to predict the events

of 2009 and 2010 may be equally as diffi cult.

However, with us continuing to diversify our

business activities and also concentrating on

our highly successful core competences, we

should continue to see our fi gures grow over

the coming year.

Despite an infl ux of international players in the

Middle East logistics industry, the region has

produced a growing number of ‘home grown’

success stories too. Th e likes of Aramex, Gulf

Agency Company (GAC) and Agility have grown

into industry heavyweights, competing with

come of the biggest names around. Of course,

it’s taken years for these logistics powerhouses

to establish their brand names within the

industry, posing a serious challenge for

newcomers to match their impressive positions

in the marketplace. However, it’s a challenge

that Dubai’s powerful Mohebi family has taken

with full confi dence, following its Dhs1 billion

(US$272 million) investment to launch a third

party logistics company in 2007.

“We want Mohebi Logistics to become one of

the region’s biggest supply chain companies and

already have a solid track record with more than

70 multinational brands, including McDonald’s,

Nestle, Kimberly Clark, Danone, Compass and

many others,” explains Mohammed Mohebi,

founder and CEO of Mohebi Logistics.

“Moving forward, we have continued to

promote the brand in 2009, including a large-

scale participation at the recent SITL Dubai

logistics exhibition. Th is was particularly useful

as a platform to support our development

ambitions for outside the Gulf region, since

the event attracted a range of multinational

visitors and exhibitors. We received a number

of promising leads as a result.”

MOHEBI LOGISTICS

29



MOMENTUM LOGISTICS

Since its launch in October 2008, Momentum

Logistics has continued to establish itself as

an emerging logistics service provider in the

Middle East, off ering a range of integrated

services that encompass transportation, freight

forwarding, warehousing, logistics cities and

container repair services.

“We have made a considerable amount of

progress in developing our regional presence

this year,” reports Matthew Derrick, general

manager, Momentum Logistics. “Our freight

division has established a global network

of agents, assembled a team of experienced

professionals and attracted over 50 new clients.

At the same time, our transport division has

completed the re-branding of equipment to

display Momentum’s distinctive green livery

and our fl eet has increased to over 120 units.”

Th e development of Momentum’s logistics

cities has also continued in full swing, with the

levelling of the seven million square foot site

in Al Saja’a (International Logistics City) now

complete and work underway on the perimeter

road network. Th e construction of twelve new

warehouses at Sharjah Inland Container Depot

(SICD) is also complete, while work on a further

twelve warehouses is underway and due for

completion in the second quarter of 2010. “I am

very pleased with the progress Momentum has

Although an imminent recovery from the

global downturn could be misconstrued as

wishful thinking, a number of logistics players

have started to look back at their pre-recession

development plans for the Middle East in recent

months. Of course, growth has always been

on the horizon for RHS Logistics and despite

a contraction in volumes during the fi nancial

crisis, its general manager Richard Bell has

remained confi dent about securing business

throughout the region. “Demand has continued

to increase for providers of quality services this

year,” he maintains.

Operating from 50,000m2 of land in Jebel

Ali Free Zone, the company has over 30,000m2

of warehouse space at its disposal, while

the remaining area has been utilised for the

open storage of containers, oil fi eld supplies,

machinery, large project cargo, and a variety of

diff erent vehicles. “We cut across all industry

segments,” says Bell. “However there is a

common theme amongst the companies using

our services. Instead of focusing solely on the

storage solution, each customer wants a 3PL

that off ers added value and ongoing support.”

made during these challenging times. Th ere

is no doubt that these key achievements are

the result of the dedication and commitment

of our valued team and the continued

support of clients,” says Derrick.

“We will continue to focus upon growth

in the future. Th e freight division will open

a new offi ce in Abu Dhabi and Dubai before

the end of 2009, and the transport division

will also launch a new operation in Kurdistan

before the end of this year,” he concludes.

By developing its core competencies in

2009, the company has ambitious growth

plans for the future. “We’re looking to

expand our infrastructure in the next

year,” confi rms Bell. “We have entered fi nal

negotiations to purchase a 30,000m2 facility

in Jebel Ali Free Zone South and I also think

Dubai Logistics City holds a lot of appeal.”

RHS LOGISTICS

RSA LOGISTICS

Dubai Logistics City has received a fl attering

response from the global logistics industry

since its launch in 2005, with the likes of

Kuehne + Nagel, Panalpina and Deutsche

Post DHL coming to the fore as early-bird

investors, each racing to complete their

ambitious warehousing facilities as quickly

as possible. However, it’s actually a relative

unknown that raced past the fi nish line in

pole position. A family-owned enterprise,

RSA Logistics commemorated the launch of

warehousing operations at Dubai Logistics

City earlier this year and while the news

might have raised a couple of eyebrows, the

company’s marketing director Kirit Mehta

states it wasn’t a conscious eff ort to achieve

this milestone in DLC history.

“RSA Logistics will always be remembered

as the fi rst company to start operations

here, although we’ve never considered this

a race or a competition with others,” he

says. “At the end of the day, everyone will be

operating from the same development and

working together as a community.”

Of course, it’s impossible to ignore the

clash between RSA Logistics being launched

and the global recession, which has

dented the logistics industry’s confi dence

throughout the world, including the Middle

East. Such an outcome was impossible to

predict when the company initiated its

plans, admits Mehta. “Th ere is a slowdown

in the Middle East, although we’re confi dent

about a recovery in the long-term, especially

when Al Maktoum International Airport

is opened,” he says. “In the meantime, we

have adjusted our short-term targets. For

example, we initially expected to reach full

storage capacity in six months, although

this has been extended to one year now.”



Th e logistics industry has experienced a period

of change in the past year and the same is true

for Toll Global Forwarding, which recently

completed its rebranding in the Middle East,

following the acquisition of BALtrans in 2008.

“I think the change refl ects a new chapter

in our continued development,” comments

Jeff Khoury, managing director of Toll Global

Forwarding in the Middle East. “We certainly

felt an impact from the recession, but also used

this as an opportunity to clean house, get in

shape and position ourselves for the eventual

economic recovery.”

Khoury adds that a bonus of the downturn

has been the availability of good staff that

have been shed by competitors. “Toll grabbed

this opportunity to recruit and added to our

headcount in the region,” he says.

Th e company fuelled its regional growth in

November 2009 with the acquisition of Dubai-

based company Logistics Distribution Systems

(LDS), which operates a central warehousing

facility in Jebel Ali Free Zone. “To understand

why Toll has apparently swum against the tide,

you need to recognise its long-term game plan.

Toll’s view is that this recession will end, as

they always do – so its focus is less on today’s

performance, and more on how it will emerge

from this recession, and how well-prepared

it will be to take advantage of the market’s

resurgence,” concludes Khoury. “Th at informs

decisions such as staffi ng levels and other

resources, and inclines us to expand when

others are contracting. Recessions create

opportunities as well as threats, but you have to

be able recognise and exploit them.”

TOLL GLOBAL FORWARDING

TRANSWORLD

Following the inauguration of its US$12.25

million warehouse in Jebel Ali Free Zone last

year, Transworld Group of Companies (TGC)

continued to expand its operations in 2009

and appointed the former Freight Systems

executive Warren Jacob as its chief executive

offi cer. “Transworld has emerged as a leader

in the Middle East logistics sector and my

role will be to increase our engagement with

customers and partners, while creating

products and services of true value, which

will be industry specifi c and thus carving out

a niche for our business,” he explains.

To support these goals, Transworld

announced a strategic partnership with

Japan’s Suzue Corporation in October 2009,

which resulted in both parties representing

each other’s freight forwarding and logistics

services in their respective operating

countries. “We are proud to partner with an

industry leader such as Suzue, which operates

20 bonded warehouses, with 196,000m2 of

storage capacity in Japan, in addition to a cold

storage facility in Singapore,” states Jacob.

WARED LOGISTICS

Wared Logistics was launched earlier this

year as Saudi Arabia’s latest entrant into the

global 3PL sector. With an initial capital of

US$32 million, the newcomer is a 50:50 joint

venture between Construction Products

Holding Company (CPC) and Zahid Holding

Group - both well-established and respected

entities in the Kingdom. And whilst a section

of the market could question the timing

of this launch, the project’s wheels were

actually set in motion around four or fi ve

years ago, when the Middle East economy

was developing at breakneck speed. Even

so, Brian McHale, CEO of Wared Logistics,

is confi dent about his company’s future

and remains adamant that its development

strategy will continue as planned.

“Th e concept of Wared Logistics was

formed after a detailed study into the global

logistics market, with a particular focus on

the Middle East and Saudi Arabia, where

companies need a high level of expertise and

professionalism to facilitate their business,”

McHale states with conviction. “Th rough

this research, Zahid and CPC received a

snapshot of the region’s potential as a global

logistics hub, which highlighted the scope

for a venture such as Wared Logistics.”

Despite its global ambitions, the fact that

Wared Logistics is based in Saudi Arabia is

actually considered a strength by McHale,

who believes the Kingdom is emerging as

one of the most promising logistics markets

in the world. Th e company has already

developed a network of 12 warehouses in

cities such as Jeddah, Dammam, Medina,

Jubail and Qassim, with future plans for two

40,000m2 facilities in Riyadh and Jeddah.

“Th ere’s a lot of talk about Saudi Arabia at the

moment, its blossoming,” he admits. “Of course,

there are challenges in the form of red tape, but

that’s actually an advantage for Wared Logistics,

because our parent companies are Saudi

businesses that have operated in this country

for decades, so we understand the regulations

and have access to tremendous shortcuts as a

result. At the same time, we need to educate the

market about the benefi ts of outsourcing supply

chain operations to a third party. Th ere’s a low

uptake at the moment, although the situation

has shown signs of change and I’m confi dent

that will continue in the future too, which

will be particularly benefi cial to organic Saudi

companies such as Wared.”

SPAN-Group is the leading provider of total supply chain solutions for companies operating in the Middle East since 1989.

Headquartered in Dubai, with regional offices in Beirut and Doha, the group strives to provide the best-of-breed solutions through its Facility

Engineering & Design, Warehouse Storage Solutions, Supply Chain IT & Integration Systems and Industrial & Office Furnishing Solutions.

Dubai, United Arab Emirates - Showroom #4, Al-Naboodah Complex, Nad Al Hamar Rd, Ramool, P.O. Box 55397, Dubai, U.A.E

Tel: (+971) 4 289 5111 - Fax: (+971) 4 289 5110 - Email: [email protected] - Website: www.span-group.com

Together we made it...

...and we shall make it again


Although the development of logistics parks

in the United Arab Emirates has traditionally

focused on Dubai, a string of multi-billion dollar

projects have recently been launched in other

parts of the country. Leading the revolution has

been Abu Dhabi Airports Company (ADAC), a

regional powerhouse in the aviation sector with

management responsibility for the airports in

Abu Dhabi and Al Ain.

Th e centrepiece of ADAC’s US$6.8 billion

development strategy is Abu Dhabi Airport

Business Park, which is being constructed on

12 square kilometres of land and will include

around 2 square kilometres of space for a

warehousing and transportation complex. Th e

project has received a considerable amount of

FREE ZONESZONESinterest from the logistics sector, especially from

freight forwarders, importers, exporters and

MRO specialists – proving that demand for such

developments outside of Dubai is plentiful. “Abu

Dhabi Airport Logistics Park will off er a wide

range of facilities, from light industrial units to

commercial offi ces and plots of land for tailored

developments,” explains His Excellency Khalifa

Mohamed Al Mazrouei, chairman of ADAC.

“Th e project is being developed in two phases,

which means we can make improvements to the

masterplan in line with investor requirements.

Construction of phase one has commenced and

should be completed in 2010. Th e development

of phase two is scheduled for 2011 and will be

completed in 2015.”

Th e logistics park is a central component

in a large-scale development plan for Abu

Dhabi International Airport, which has been

designed to increase the overall capacity to

more than 20 million passengers per year.

Th is includes the construction of a second

runway and third terminal, which have been

completed, together with a midfi eld terminal

complex and air control tower (ATC), which

will be operational in the next few years. Of

course, with growing volumes of cargo being

handled at the airport, its airfreight facilities

will also receive an industrial makeover. “Th e

amount of cargo being handled at Abu Dhabi

International Airport has strengthened this

year and we expect this trend to continue in the

future, especially with plans to diversify Abu

Dhabi’s economy in the coming years,” says Al

Mazrouei. “In response, a world-class airfreight

facility will be opened by 2012, expanding our

current handling capacity of 475,000 tonnes per

annum to 1 million tonnes per annum. In the

longer-term, this fi gure will eventually reach 3

million tonnes.”

Although the market response for these

developments have been described as

“overwhelming”, this has actually presented an

interim problem for Al Mazrouei and his team.

“Demand for space has exceeded the facilities

that we have planned,” he says. “ADAC has

responded by announcing a second logistics

park at Al Ain International Airport.”

Th e additional project, which is being

developed in partnership with Helios SinoGulf

Development, will cover 650,000m2 and

includes distribution centres, light industrial

units, freight forwarding stations, offi ce space

and supporting facilities. Th e fi rst phase is

scheduled for completion towards the end of

2010 at a cost of $250 million.

“Whilst the two projects are separate with

diff erent selling points, they complement

each other and together provide the full suite

of facilities for the aviation and aerospace

industries,” says Al Mazrouei. “Within both of

these logistics parks, international investors

can run their operations in the best business

environment, benefi ting from the low cost

operation at Al Ain to focus on manufacturing

aircraft parts and the growing connectivity

network off ered by Abu Dhabi, which is the

perfect solution for the distribution of goods.”

Lacking the natural advantages of gas and

petroleum, Ajman established a free zone in

1996 to support its economic growth.

Strategically located at the entrance of the

Arabian Gulf, the industrial centre has become

the emirate’s sole regulatory agency and

claims to house 20% of the UAE’s total

manufacturing units, exporting to over 64

countries around the world. It’s proximity to

Sharjah and Dubai provides easy accessibility

to two international airports and four seaports,

with Ajman Port emerging as a leading maritime

focal point, serving over 1000 vessels a year.

In addition, Ajman Free Zone Authority (AFZA)

secured fi nancing with Ajman Bank this year

to complete the third phase of its large-scale

warehousing complex. Valued at US$14.7 million,

the agreement is a type of Islamic fi nance

known as Ijarah and will be utilised to support

the free zone’s growth as a logistics hub.

AJMAN FREE ZONE AUTHORITY (AFZA)

ABU DHABI AIRPORTS COMPANY (ADAC)

ANNUAL REVIEW 2009: FREE ZONES AND INDUSTRIAL AREAS



Bahrain’s logistics industry is expected

to receive a positive boost with the

opening of Bahrain Investment

Wharf (BIW), which is currently being

constructed on a plot of land measuring

1.7 million square metres in the Hidd

industrial area.

Th e ambitious development will

include a dedicated logistics park, with

around 900,000m2 allocated for supply

chain activities, including warehouse

storage, packaging and distribution.

“Bahrain has always enjoyed an

enviable reputation as a regional

logistics hub. We are simply revamping

and modernising that image,” explains

Muhannad Al Durrah, CEO of BIW.

Th e wharf is being strategically

located in the northeast of Bahrain,

within close proximity of the country’s

airport, seaport and road network.

“Th is project will be particularly attractive to

the logistics industry because of the excellent

transportation links,” adds Al Durrah. “It is

located approximately 2km away from Bahrain

airport and 1km from Sheikh Khalifa Bin

Salman port. In addition, the King Fahad

Causeway and a planned causeway connection

to Qatar are within close proximately.”

BIW is hoping to attract the interest of the

logistics industry by off ering a range of business

incentives, including complete customs duty

exemption on capital goods, raw materials for

manufacturing, re-export goods and imports

required for development projects. Companies

can also establish their operations without

a local sponsor, which means full business

ownership in most categories. “Th e benefi ts are

very innovative, which should prove valuable

for logistics providers and those handling

supply chain management inhouse, as part of

their overall operations,” adds Durrah.

BAHRAIN LOGISTICS ZONE

Th e management team at Bahrain

Logistics Zone has adopted a full

throttle approach for their marketing

campaign in 2009, visiting all corners of

the world to promote their “boutique”

logistics zone in Khalifa Bin Salman

Port. Its little surprise, therefore, that

a number of industry heavyweights

have already expressed their interest

in the US$280 million project, with

Danzas and CEVA amongst the fi rst 20

companies to start the construction of

their warehouse facilities at the site.

“Th e unprecedented demand from

local and international companies

has strongly indicated that Bahrain

Logistics Zone is heading in the right

direction,” states Hamad Fakhro,

assistant director general of General

Organisation of Seaports (GOP), which

is overlooking the project. “In fact,

only a few months after we started

the process for tenancy applications,

we found ourselves fi ve times

oversubscribed. As a result, we have

decided to increase the zone by 150%,

which should help to bridge the gap

between demand and supply.”

Despite the expansion, Fakhro and

his team have a stringent application

process to ensure Bahrain Logistics

Zone hosts a diverse community of

tenants. “We are dedicated to making

sure our tenants are the right fi t and

bring the most value to Bahrain,” he explains.

“Th is means on one level the creation of jobs

and increase in foreign investment, as well as

their ability to transfer knowledge to the local

market and their involvement in activities to

further Bahrain’s economic goals.”

With this in mind, it seems Bahrain Logistics

Zone will bring massive benefi ts to the

Kingdom’s economy. Aside from the US$600

million that will be generated from foreign

direct investment, the project is also expected

to generate 2400 medium to high-wage jobs.

“Th e Arabian Gulf ’s economy is growing at a

signifi cant rate and Bahrain is no exception,”

ends Fakhro. “With the support of its forward-

thinking government and the private sector, we

are ready to face future challenges.”

BAHRAIN INVESTMENT WHARF

With a number of transportation projects being

developed at Aqaba Special Economic Zone

(ASEZ), it seems the future of Jordan’s logistics

industry has been placed in safe hands. In

particular, the construction of Aqaba Logistics

Village continued at full speed this year, with

His Majesty King Abdullah inaugurating the

project in November 2009.

“Projects such as the logistics village,

together with the likes of Aqaba Container

Terminal and Aqaba Air Cargo Terminal, are

designed to develop the status of ASEZ as a

complete logistics hub, while contributing to

the national economy of Jordan,” states Imad

Fakhoury, chief executive offi cer of Aqaba

Development Corporation (ADC). “We signed

an agreement with Agility and Th e Kawar

Group for the development, management and

operation of Aqaba Logistics Village, which

will receive approximately US$70 million in

direct investment. In the future too, we hope to

encourage a greater number of public-private

partnerships for logistics projects in the zone.”

Aqaba Logistics Village is being developed

on 500,000m2 of land next to Aqaba Container

Terminal over the next ten years. Th e fi rst phase

involved the development of infrastructure

and the construction of a container terminal,

distribution centre and service centre.

Th e second phase will incorporate an

additional three distribution centres, each

covering 10,000m2, together with the village

headquarters and a logistics institute, while

three more 10,000m2 distribution centres will

be constructed in phase three.

According to the agreement with Agility

and Th e Kawar Group, the both parties will

complete the village on a build, operate and

transfer (BOT) basis, with ADC taking over

ownership after 25 years.

AQABA SPECIAL ECONOMIC ZONE AUTHORITY (ASEZA)



During the early 1990s, when operations

commenced at Dubai Cargo Gateway (formerly

Dubai Cargo Village), the Middle East aviation

industry was increasing its focus on airfreight

operations, leading to a sudden growth in

cargo volumes. Even with the global recession,

the region has outperformed its counterparts

across the world and Dubai Cargo Gateway

has remained at the forefront of this continued

evolution. With this in mind, the development

of a ‘cargo mega terminal’ will help the facility’s

handling capacity to reach a whopping 1.2

million tonnes. “We have experienced growth

in 2009 and with this development, we will have

the infrastructure to cope with future growth,”

predicts Ali Al Jallaf, vice president of cargo,

Dubai Airports.

DUBAI CARGO GATEWAY

A number of factors have contributed to the

fi nancial success of Dubai Airport Free Zone

(DAFZ) in 2009, including its accessibility to a

market of over 1.5 billion consumers and over

100 leading international airlines. In addition,

the free zone’s ambitions to remain an innovator

in the Middle East has resulted in a number of

operational changes this year, including a re-

branding exercise that was revealed at the SITL

Dubai logistics exhibition earlier this year.

“We have undergone several changes in 2009

to revamp our position and cater to the needs

of a growing tenant list,” states Ibrahim Ahli,

marketing director at DAFZ. “Th e re-branding

has been supported by expanded offi ce space,

with the latest telecommunications

connectivity, in addition to the launch of

a business centre and planned hotel.”

One of the major factors the free zone

prides itself in is its extensive business

incentives for tenants, such as 100%

tax exemption, 100% ownership rights

and rapid cargo clearance, which has

attracted companies such as DHL, Xvise

and FedEx. “At present, the free zone

houses 1500 companies and the calibre

of clients here has helped to give DAFZ

a solid reputation around the world,”

continues Ahli. “We look forward to

building on this success in 2010.”

DUBAI AIRPORT FREE ZONE AUTHORITY

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It’s been a challenging year for Dubai

Logistics City, with the resignation

of chief executive offi cer Abdullah

Al Qurashi leading to another round

of negative publicity for the project.

However, while the market has reacted

with caution, a number of impressive

highlights have also been reported in

the past year, including a warehouse

opening for RSA Logistics - the fi rst

tenant to commence operations at

Dubai Logistics City - while Kuehne +

Nagel and Panalpina also completed

the construction of their large-scale

facilities and Aramex hosted a ground

breaking ceremony for its warehouse.

Perhaps more importantly, Dubai

Aviation City Corporation, which

is responsible for Dubai Logistics

City, signed an agreement to align

procedures with Jebel Ali Free Zone

in a benefi cial move for supply chain

operations throughout the region.

Th e landmark agreement will be

implemented in four stages over the

coming years. Under the fi rst stage,

transportation procedures will be

aligned for cargo that is shipped

between Dubai Logistics City and Jebel Ali

Free Zone. Th e second stage will be focused on

administrative operations, such as business

registration and trade licensing, while the third

and fourth areas will involve the development of

a common operating platform and alignments

in marketing and promotional activities.

“We are proud to announce this alliance

with Economic Zones World, the parent

company of Jebel Ali Free Zone Authority,” says

Rashed Buqara’a, COO of Dubai Aviation City

Corporation. “With our focus on aviation and

logistics combined with EZW’s complimentary

strengths in land and sea based connectivity,

we are creating a platform that will confi rm

Dubai’s position as the unparalleled centre

of logistics in the region and as a globally

signifi cant player for generations to come.”

DUBAI MARITIME CITY

Earlier this year, Dubai Maritime City

(DMC) completed the construction

of more than 200 units within its

industrial precinct, marking another

breakthrough for the multi-million

dollar project, which is being marketed

as the world’s fi rst purpose-built

maritime centre. A total of 217 units

have now been structurally completed

in the industrial precinct, including

140 workshops, 60 warehouses, 12

showrooms and fi ve yacht manufacturing

facilities. Th e units have since been handed

over to Drydocks World - Dubai, which is

responsible for running and operating the

industrial precinct and has been leasing

the units to businesses in the logistics and

transport industry. In addition to handing over

the units, Dubai Maritime City also delivered

a number of supporting components, such

as the central administration building, ship

lift control building and mobile boat hoist.

DUBAI LOGISTICS CITY

Th e race to become the Middle East’s ultimate

centre for warehousing activities has attracted

several candidates over the years. With the

likes of Jebel Ali Free Zone and Dubai Logistics

City receiving plenty of attention from the

media, other projects could easily be tagged as

underdogs for the title. However, with a truly

productive year in 2009, Dubai Industrial City

has carved an enviable niche for itself in the

logistics industry, which vice president Rashed

Al Ansari believes will continue to strengthen

in the coming years.

“Dubai Industrial City has crossed a

number of milestones this year, including the

construction of 64 showrooms with storage

facilities, which are now available for lease and

feature two fl oors, spanning 5000 square feet

each, in addition to 5000 square feet of storage

space at the rear of the building,” he explains.

“Also this year, we confi rmed plans to extend

our open storage area by 3.5 million square feet

to meet growing demand from customers in the

construction, equipment and transportation

sectors. Th e complex previously had 2.8 million

square feet of open storage yards, which were

utilised by a handful of companies in the United

Arab Emirates. Th e expansion more than

doubled the available space and indicated our

ability to satisfy the needs of Dubai’s business

community, while bridging the shortfall in

storage facilities,” he adds.

Launched in 2004, Dubai Industrial City is

being developed on 56 million square feet of

land, with separate zones being constructed

for six diff erent industry sectors. Th ese will be

complemented with supporting infrastructure

for industrial training and labour

accommodation, in addition to a signifi cant

amount of warehousing and distribution

space. “We are developing into a self-contained

city-within-a-city,” ends Al Ansari. “With the

construction of these facilities, we are sending

a clear message of support to the industrial

sector in Dubai as it grows as the second largest

economic sector in the emirate.”

DUBAI INDUSTRIAL CITY

ITP advert_december.ai 11/15/2009 3:26:57 PM



INTERVIEW: OUSSAMA EL OMARI, CEO OF RAS AL KHAIMAH FREE TRADE ZONE

How many companies are currently based in RAK Free Trade Zone?At the moment, we have over 7000

companies registered from 106 diff erent

countries. From this total, 64% are

trading companies with warehousing

facilities, 26% are consulting and

services companies, 3% are industrial

and 7% are general trading companies.

Have your operations been impacted by the global recession?Th e slowdown has impacted everyone

in some way. We have been fortunate

that despite the ongoing economic

crunch, the free zone has continued

to attract and maximise the growth of

business in 2009, which shows we have

the right strategy in place to counter

the slowdown. As for clients, we try to

minimise the impact by being fl exible

and trying to fi nd creative solutions so

they can continue with their business.

Is the logistics sector an important market for the free zone?RAK Free Trade Zone has established

itself as a popular destination for

logistics activities and to continue

this momentum, we are constantly

developing our operations to boost the

warehousing and distribution activities

of our tenants. A variety of plot sizes

are available, ranging from 2500m2 to

500,000m2, supported by the usual free

zone benefi ts of 100% foreign ownership

and tax exemption.

RAS AL KHAIMAH FREE TRADE ZONE (RAKFTZ) AUTHORITY

Th e development of Emirates Industrial City

has continued to progress at full speed, avoiding

the usual construction delays that have plagued

a number of industrial areas during the past

year. It’s quite an achievement for the Sharjah

project, which has been conceptualised by Al

Hanoo Holdings and will eventually spread

across 83 million square feet in the district of

Al Sajaa. “Th e project has been divided into

eight sections, two of which are reserved for

warehousing operations, with a total of 400

storage facilities being constructed on 20

million square feet of land,” explains Sheik

Abdullah bin Fahid Al Shakrah, chairman of

Al Hanoo Holding. “Th e complex is located

alongside Dubai Ring Road, in close proximity

to Sharjah International Airport and the lack of

traffi c congestion will help Emirates Industrial

City diff erentiate itself from similar projects in

other parts of the Middle East.”

JEBEL ALI FREE ZONE AUTHORITY (JAFZA)

INTERVIEW: IBRAHIM AL JANAHI, CHIEF COMMERCIAL OFFICER OF JEBEL ALI FREE ZONE AUTHORITY

What factors have contributed to Jebel Ali Free Zone’s success in the past year?Innovation has been integral to the success

of Jebel Ali Free Zone. We have continued to

optimise our logistics off erings over the years,

whether that means the construction of new

structures to accommodate demand or the

improvement of existing structures to better

serve our clients. All companies, from local

enterprises to global multi-nationals, need

assurance that their growth can be effi ciently

facilitated and our operations, infrastructure

and services can meet these expectations.

What have been the latest warehouse developments at the free zone?Jebel Ali Free Zone prepared for the completion

of fi ve mega-projects this year and two of them

are related to warehouse operations. Th e fi rst

is situated in the South Zone and consists of

68 warehouse showrooms, which combine

the facilities of a modern showroom and a

functional warehouse. Th e second project is

located in the North Zone, roughly 350 metres

from the port, and consists of 43 warehouses

and light industrial units, with a height

allowance of 10 metres for maximum storage.

A growing number of industrial areas have been established in Dubai. Is there

suffi cient demand for each of these?In terms of value for money, Jebel Ali Free Zone

is easily amongst the most competitive in the

world and off ers a unique blend of services and

benefi ts. In addition, we are located between

the hugely successful Jebel Ali Port and the

forthcoming Al Maktoum International

Airport. Th ese incentives are really diffi cult to

beat and have diff erentiated us from others in

the Middle East and beyond.

Has there been an impact on demand for warehousing space with the recession?We have found that certain sectors of the

market have still been active in 2009 and since

our latest developments are demand-driven

initiatives, I am confi dent about their success

in the coming years.

EMIRATES INDUSTRIAL CITY

ON COURSE FOR A BIG FUTURE.Port of Sohar is moving full speed ahead and is already

the world’s largest port development. Positioned just

outside the Strait of Hormuz and offering easy access to

all the world’s shipping lanes, it offers three terminals

operated by world leaders.

A cargo and dry bulk terminal operated by C.Steinweg,

a liquid bulk terminal operated by Oiltanking Odfjell, and

Oman International Container Terminal (OICT) operated

by Hutchison Port Holdings.

With an infrastructure expanding at a rate of knots, Port

of Sohar is now firmly on the map as the destination of

excellence. Which is why so many are making it their

preferred port of call.

To find out more visit www.portofsohar.com

SIP_ITP Logistics_AW.indd 1 10/20/09 2:25:35 PM

ANNUAL REVIEW 2009: MATERIALS HANDLING AND TECHNOLOGY SOLUTIONS


MATERIALS HANDLING AND TECHNOLOGY SOLUTIONSAND TECHNOLOGY SOLUTIONS

INTERVIEW: NAVIN NARAYAN, OWNER OF ACME GROUP

How long has Acme been established in the Middle East logistics industry? We were launched as a general trading

company in 1977, with a strong focus on storage

solutions. At the time, the uptake for palletised

cargo was fairly limited in the Middle East, so

demand was mainly focused on slotted angle

storage systems. Th e market has expanded

over the years and new technologies are being

incorporated into the supply chain. As a result,

we now operate four divisions – material

handling and storage systems, fl uid sealing and

marine equipment, industrial pneumatics and

automation, and fi nally IT services.

How strong has the material handling sector been in the Middle East this year?I think the next big money spinner in Dubai, as

such, will be logistics. Th e emirate has developed

a world-class transportation infrastructure

to support the MENA region’s logistics needs.

With the creation of Dubai World Central over

the next few years, Dubai has the potential to

truly become a world player in the business of

moving people and freight. In addition, Qatar

and Bahrain have big plans to supplement this.

I am sure there is good scope for the material

handling sector to participate in the economic

growth of this region.

What has ACME Group been impacted by the global recession in 2009?It would be naive to claim there has been no

impact on the Middle East market due to

the global recession. However, although this

region has been aff ected, it was aff ected much

later than the rest of the world and has already

shown signs of recovery. Th ere is a contraction

and slowdown, which is evident. It is giving

businesses the time to stop, rethink and realign

their strategies. Th is would help players in this

region to become lean and competitive.

What are for future development plans for your company in the Middle East region?We intend to become a complete integrator

of various material handling solutions, while

growing our existing market and branching out

in new areas of the Middle East and Asia.

ACME GROUP

Bringing its global expertise to the Middle East

logistics industry, ATMS has reinforced its

position as a leading software provider in the

region, securing a growing list of contracts over

the past 12 months. In particular, the company

has successfully marketed its Stock Track Plus

(STP) warehouse management system to local

customers, with recent contracts being awarded

by Qatar Navigation and Gulf Worldwide.

“ATMS has been uniquely positioned in the

Middle East, because we are the only warehouse

management system author of note with our

own offi ces in the region. Th is has helped our

clients considerably,” explains Steve Cross,

managing director of ATMS. “We can listen

to the specifi c needs of customers and quickly

incorporate their requirements within our

product development roadmap.”

Despite the global slowdown, ATMS has

reported one of its most successful years ever,

which Cross attributes to a number of diff erent

factors. “We’ve been in this business for 25 years

now. Although our warehouse management

system is only three years old, it is based on

years of experience. Plus, we’re a privately

owned company with low overheads, so we can

provide powerful and fl exible solutions, often at

a third the cost of large State-side vendors.”

Earlier this year, ATMS further developed its

local invoicing and Jebel Ali Free Zone customs

modules, while also developing Global Track, a

hosted supply chain track and trace solution.

A number of trade events were also hosted

by the company in 2009 to directly promote its

solutions to potential Middle East customers.

Th is included a monthly series of workshops

on warehouse management systems, which

attracted a stream of existing customers,

prospective clients and industry advisors.

“Th e workshops are really successful and

have been designed for people to gain a

better insight into Stock Track Plus, with

live demonstrations that cover warehouse

optimisation, quality control, barcoding and

radio data terminals,” says Cross. “It’s also a

platform to ask questions and have discussions

with ATMS experts. Everything is free and

there’s no obligation to purchase.”

ATMS



Although business was relatively fl at for

Business Systems Group (BSG) in the fi rst

quarter of 2009, demand has resumed

an increase from the second quarter

onwards. As a result, the company -

which is the regional distribution and

competency centre for Exactus supply

chain technology solutions - has reported

a large number of customer wins this

year, including Al Madina Logistics, JET

Airfreight, Triburg Logistics, Triolite,

Hassani Group of Companies, Balmer

Lawrie and Takwa Distribution.

“Even in a recessionary business

climate, there were companies that

adopted new technologies to become

more innovative and improve their

business processes,” explains Raheel

Khan, regional director of BSG. “Of

course, there were situations where

customers demanded fl exible payment

plans to facilitate their cash-fl ow

situations and we had to accommodate

those requests.”

Although the Exactus suite of supply

chain products is designed as fl exible

solutions, BSG has taken a measured and

cautious approach to implementation

in 2009. “Th ere are some excellent

products that have failed miserably in

the Middle East market, simply because

the company behind them did not have

enough bandwidth to carry out the

projects or because their implementation

consultants lacked in-depth product

familiarity,” explains Khan. “We make

sure that our consultants are fully

grounded in the product and updated by

going through training programmes.”

In line with BSG’s expansion plans,

the company established an Off shore

Development Centre (ODC) in India this

year and also plans to establish sales

and support offi ces in the lucrative Saudi

Arabia, Oman and India markets next

year to boost sales in the region.

BUSINESS SYSTEMS GROUP (BSG)

Ehrhardt + Partner Solutions (EPS) has

reported a steady increase in demand from

Middle East customers over the years, with a

growing number of companies purchasing its

software solutions in 2009, including EMKE

Group, operator of the LuLu Hypermarkets,

which ‘went live’ with the LFS400 warehouse

management system in October.

In addition, the technology specialist has

made a considerable amount of progress with

the construction of its regional headquarters

at Dubai Logistics City, which is scheduled to

open in February 2010. “Th is centre will really

support our growth in the Middle East and

allow customers to analyse their existing

processes in a live environment, while testing

and getting to know our technology,” says

Hermann Ehrhardt, managing director of EPS.

To support its regional investments, EPS also

hosted a number of educational workshops

at the beginning of the year to raise standards

in the Middle East, with participants being

taught about global warehouse processes

by trainers with vast industry knowledge.

“Investments into most modern technologies

are only as good as the educational status of

the employees. Long term growth can only be

EHRHARDT + PARTNER SOLUTIONS (EPS)

CHEP MIDDLE EAST

realised with skilled personnel,” continues

Ehrhardt. “I am confi dent that the training

off ered by EPS, which ranged from basic

logistic knowledge to advanced processes, will

help to optimise existing processes and reduce

operating costs for participating companies.”

EPS continued its marketing campaign

this year with appearances at GITEX

Technology Week and Materials Handling

Middle East, while it also collected the

prestigious Technology Provider of the Year

trophy at the Supply Chain and Transport

Awards (SCATA) in Dubai.

CHEP has established itself as a premium

brand in the material handling sector, with an

asset base of more than 285 million pallets and

containers, which are utilised by customers in

44 countries around the world.

In particular, the company has fl agged the

Middle East as a strong emerging market in

2009 and established its service centres in

countries such as the United Arab Emirates,

Saudi Arabia, Kuwait, Oman and Qatar.

“Unfortunately, many companies in the

GCC use pallets by default, rather than design.

Little attention is paid to quality, hygiene or

specifi cation,” says Smyth. “Th e pallet is simply

used to enable a forklift to handle a unit load

and will be dumped or recycled again.”

CHEP pallets are returned to a service centre

after completing a supply chain cycle, where

they are inspected and repaired to ensure that

only high quality pallets, capable of meeting

customer needs, are re-issued into the pool.

In particular, fast moving consumer goods

(FMCG) companies have been early adopters

of the pallet pooling concept and CHEP

has earned the custom of leading

FMCG manufactures, retailers and logistics

companies in the Middle East.

“Procter & Gamble, National Food

Industries, Saudi Glass Company and IATCO

now participate in the CHEP pallet pooling

system, together with another 400 companies,”

continues Smyth. “We have enjoyed strong

growth over the past year and pallet hire

volumes are expected to double during 2010, as

companies focus on reducing their supply chain

costs during the current economic climate.”

43

TRADE ASSOCIATIONS



INTERVIEW: COLIN SUMMERS, INTERMEC REGIONAL MANAGER (MIDDLE EAST, INDIA AND AFRICA)

What range of handheld computers are provided by Intermec in the Middle East? Intermec has provided a range of handheld

computers in the Middle East for over 20 years,

which are aimed at a very diff erent market to

products such as offi ce computers or PDAs.

Our typical user could be a warehouse packer,

courier agent, postal delivery person, fi eld

service engineer, van sales driver or utility metre

reader. What these people have in common is

the need to use handheld computers for multiple

business operations. Our products are rugged

and manufactured to strict certifi cations, with

a comprehensive testing process that covers

everything from freezing temperatures to high

humidity to drops onto concrete fl oors. Th is

underlines the fundamental issue that mobile

computers should be able to survive the rigours

of supply chain operations in the Middle East.

How strong has demand been for your handhelds in the Middle East this year?My estimate is that demand for handheld

products across the Middle East has grown

at an average rate of 20% per annum, while

INTERMEC

FAMCO

Intermec’s average growth has been 40% over

the past fi ve years. Th e handheld computer

business has only recently moved from a niche

market into the mainstream of the IT industry.

Th ere are a lot of developments happening

and I believe we’ve reached an infl ection point

in terms of market and user acceptance. In

other words, there is now suffi cient experience,

knowledge and confi dence within organisations

DAVID DRONFIELD, DIVISIONAL MANAGER OF STORAGE AND HANDLING SOLUTIONS AT FAMCO

How important has the logistics sector been to FAMCO this year and how have your material handling solutions fared?It’s a very important market and we off er

a growing selection of material handling

products, such as Dexion industrial storage

and shelving systems, Linde forklift trucks

and Stertil warehouse dock-levellers. Each of

our core products have performed extremely

well, gaining in market share, especially with

the high value Volvo truck and construction

equipment businesses.

Which factors do you think have essentially contributed to this success in 2009?Th e continued development and success

of FAMCO has been based on our in-depth

understanding of customer needs and the

dedication of our skilled workforce. Th is

basically means that we are well positioned to

service the future development of the United

Arab Emirates.

How have you advised Middle East customers to address challenges from the global recession this year?In order to survive this period of economic

uncertainty, it’s essential for companies in the

Middle East logistics industry to optimise their

performance. While others are expanding their

warehouse facilities or increasing their rental of

storage space, it’s actually a wiser idea to look

inwards and restructure your existing supply

chain operations to maximise eff ectiveness.

Can businesses justify the spend on material handling solutions in the Middle East during this economic climate?It’s important to remember that storage systems

are designed to be adjustable. By making a

small investment in the re-planning and re-

arranging of systems, companies can benefi t

from long-term effi ciency gains that will result

in the more eff ective use of equipment and a

better return on investment. For example, the

upgrading of material handling equipment can

result in faster order processing and resource

optimisation. In addition, the implementation

of a warehouse management system can help to

ensure the fastest completion of tasks. Of course,

companies should never make changes without

researching the market and questioning an

expert in the fi eld, whether it’s a consultant or

an experienced material handling specialist

such as FAMCO.

to appreciate they cannot eff ectively operate

their business without handhelds.

What makes your product different to others in the regional market?Intermec has been manufacturing handheld

computers longer than any company and we

have an impressive track record of innovation.

For example, we were the fi rst manufacturer to

off er four radios in a single handheld computer

namely Bluetooth, GPRS, WiFi and GPS. We

also produced the fi rst mobile computer with

RFID read capabilities. In addition, we supply

a complete solution, which includes peripherals

such as printers that are normally required

along with the handheld terminal.

Is there a lot of competition in the local market for warehouse technology? Th e bulk of competitors fail to understand the

requirements of customers, so a large portion of

our business comes from companies that have

been sold equipment that is not suitable for

harsh environments or the rigorous use of non-

offi ce workers. Th e key is showing a suitable

return on investment, which takes years of

experience. Intermec brings this consultative

approach to customers, which has been a key to

our success.



Finding the time to refl ect on the

success of his Product Sourcing Guide

a few years back has been a struggle for

Stewart Arbuckle, managing director

of Loc8. Th e company, which is based

in Dubai, has experienced a relentless

period of growth since its launch, with

new product launches and double-digit

growth being reported on a yearly basis.

“Our latest catalogue was launched this

year and featured even more innovative

and practical products,” states Arbuckle.

“Th is has contributed to a signifi cant

increase in enquiries and the overall

response was very positive. In particular,

our spill prevention range has been

particularly popular, as companies are

becoming increasingly sensitive to HSE

regulations. Th e mezzanine product has

also performed well and helped clients to

maximise their available fl oor space.”

Aside from the catalogue, Loc8 has

continued to diversify in 2009, with a

number of divisions being created to

capitalise on strong customer demand.

One of the teams, according to Arbuckle,

has been established to provide design

support to companies that are opening

new warehouse facilities or revamping

their existing ones. “We have adopted

a solution-based approach, which is a

refreshing change for clients, helping

them to optimise their warehouse space

and make wise investments.”

Following its success at the Materials

Handling Middle East exhibition in

previous years, Loc8 returned to the

trade show in 2009 with a solid number

of enquiries from potential customers.

“Our stand at Materials Handling Middle

East proved to be worthwhile and we

received a lot of attention from visitors,

which proved our initial scepticism on

attendance levels to be unfounded” states

Arbuckle. “Looking ahead, 2010 will for

sure not be an easy year, however, we are

confi dent in the local economy and look

forward to the challenges it brings.”

LOC8

Despite only recently entering the Middle East

market in its own right, SICK Automation

International has found that its wealth of

products has received a rapturous response

in a region where its solutions generally lack a

competitor. “We cover a wide range of products,

from anti-collision systems on cranes and

forklifts to fi xed mount barcode reading in

automated warehouses,” says Julian Sperring-

Toy, regional director of SICK Automation.

A specifi c product that was showcased at

the Materials Handling Middle East show in

Dubai this year was SICK’s volumetric weighing

solution for couriers, which allows fi rms to

establish both the weight and size of items.

“Couriers have limited space on their vehicles,

SICK

LOGCUBES

so this helps them more eff ectively pack and

select their routes, as well as realise those lost

revenue opportunities,” adds Sperring-Toy.

Although SICK has been operating in the

Middle East market for around 15-20 years

through partners an distributors, it was only in

the past year that the operator has established

an offi ce in Dubai in its own right. It appears to

a decision that has been vindicated. “Generally

speaking, we have seen some downturns in

some areas of our business, but in others, it’s

absolutely fl ying,” Sperring-Toy observes. “A

lot of the success has been achieved due to

the willingness of local governments to invest

in infrastructure and we expect that trend to

continue in the future.”

Although the recent launch of LogCubes,

in addition to its trade partnership with

Manhattan Associates, took place during a

global recession, the company’s director Tarek

Saoud has managed to fi nd opportunities in a

challenging market.

“Th is year could be compared to a planting

season for a farmer, as we began to introduce

companies to the suite of Manhattan Supply

Chain solutions,” he claims. “Many customers

are using this time of negative economic

growth to evaluate their positions and re-think

their supply chain plans, while others have

passed this stage and are already considering

products such as warehouse management

systems, slotting optimisation solutions or

distribution management systems.”

According to Saoud, the companies that are

taking advantage of the downturn to improve

their supply chain effi ciency will emerge as

leaders once the market has recovered. “Th e

economic slowdown has squeezed out some

players, but the remaining ones are now re-

evaluating their logistics practices and the

effi ciency of their distribution centres,” he

continues. “In order to remain competitive,

companies have not only focused on cost

cutting measures and the improvement of the

bottom line, but are addressing the key issues

of customer service response and availability

of stock. In my opinion, the supply chain now

constitutes the fi nal frontier to success.”

LogCubes has actually been in development

for the last two years in response to the growing

demand for supply chain technology in the

Middle East, and more specifi cally, in the Gulf

region. Since the company’s launch, it has

focussed on existing Manhattan Associates

clients, while generating awareness among

potential new customers. “In total, there are

already more than 10 customer sites in the

region, a number we expect to double in the

next 12 to 18 months,” concludes Saoud.

45

TRADE ASSOCIATIONS



SNS

INTERVIEW: MARIO GHOSN, GENERAL MANAGER OF SNS

What presence does SNS have in the Middle East as a logistics technology provider?We have three offi ces in the region, located in

Dubai, Beirut and Saudi Arabia, with a team

of 30 operational and technical consultants

who are experts in the supply chain fi eld. Our

mission is to become the trusted advisor and

partner of clients by providing them with the

highest quality services and holding ourselves

accountable for their success in the market.

Which companies have you partnered with in the region to achieve this goal?We have two main partnership in the region

with SPAN Group and Infor, which are leaders

in their markets. In addition, there are

partnerships with other providers of supply

chain solutions to ensure that customers have a

fully-integrated solution at their disposal.

How strong has the local market been for warehouse management systems in 2009?Th rough our partnerships with SPAN Group

and Infor, we are currently the number one

provider of supply chain services in the Gulf

and Middle East. Our strength resides in our

understanding of the Middle East culture,

our customer oriented approach, our local

presence and our expertise in supply chain

management.

Can you name some of your recent customers in the Middle East region?Over the years, we have worked with some of the

top players in the regional supply chain market.

Our customer portfolio includes Agility, Pepsi

Kuwait, Nestle, P&G, Aramex, Danzas, Fuel

Group, Transmed, Jawad Group and Al Yasra.

What has been the company’s biggest highlight in the past year?We hosted a recent seminar for supply chain

and logistics professionals in the Middle East,

allowing them to participate in informal

networking and discussions with industry

professionals, while learning the best practices

that are being applied to enhance supply chains

performances. Th e event was held in Lebanon

and featured a number of keynote speakers,

including Walid Daniel from SPAN Group,

Marouane Rihoum from Chalhoub Group,

Sjoerd Koopman from Nestlé and Andrew

Kinder from Infor.

What are your future development plans?SNS believes in staying one step ahead of

market demand. We constantly seek to increase

our services portfolio and enhance our training

curriculum. In addition, we are expanding into

markets outside the Middle East, such as Latin

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ANNUAL REVIEW 2009: TRAINING AND EDUCATION


TRAININGAND EDUCATIONAND EDUCATION

Bahrain Polytechnic has supported the growth

of logistics activities in the Kingdom with the

introduction of three educational courses

this year – a bachelor degree in international

logistics management, a diploma in logistics

and transport, and a higher diploma in

international logistics management, which

have all been accredited by the Chartered

Institute of Logistics and Transport (CILT).

“Bahrain Polytechnic was established as part

of the Kingdom’s long-term plans for economic

development. Specifi cally, the Polytechnic has

been given the task of producing work-ready

graduates of educational courses, ranging

from industry short-programmes to degrees,”

explains John Webb, transport, freight and

logistics programme manager at Bahrain

Polytechnic. “One of the sectors seen as critical

to this vision is logistics and transport. Our

programmes aim to deliver relevant courses

and awards that support the development and

sustainability of the industry. Th e target market

is as diverse as the transport and logistics

industry itself and the plan is to eventually

develop a full range of programmes that can

be delivered in workplaces, at night schools

as well as full time at Bahrain Polytechnic.”

BAHRAIN POLYTECHNIC

INTERVIEW: NIGEL WOODHEAD, HEAD OF LOGISTICS STUDIES AT EMIRATES AVIATION COLLEGE

When was the logistics course established at Emirates Aviation College?Our MBA in logistics and supply chain

management was launched in October 2008

through a collaboration with Coventry

University in the United Kingdom.

How many students are currently enrolled on the education programme?At the moment, over 40 students are

undertaking their MBA in logistics and supply

chain management with Emirates Aviation

College. Students are represented from nine

nations across the globe, bringing with them

experience in a wide range of sectors, such

as the airline industry, purchasing, banking,

real estate and security. Th is broad range of

nationalities, along with their diverse working

backgrounds, provides a useful platform

for everyone to discuss and share their

previous experience and knowledge.

What progress has been made with this logistics course in the past year?Th e college was pleased to gain an additional

accreditation in May 2009 from the Chartered

Institute of Logistics and Transport (CILT),

which is a global association for logistics and

supply chain management professionals.

Is Emirates Aviation College expanding the scope of its education programmes at all?Yes, following the success of our programmes

in Dubai, the college ventured to Singapore

and the UK, launching the MBA in Aviation

Management in September this year. At the

same time, in Dubai we have introduced MBAs

in Aviation Safety and Security, as well as

Information Technology Management. Both

are relevant to logistics, with expenditure on

aviation security doubling in a three year period

and the wider application of sophisticated IT

systems being a major trend in the industry.

How do you expect regional demand for this course to develop in the future? Dubai has continued to push forward as a

leading global logistics hub, with massive

investment in regional transportation

infrastructure and a shortage of suitably

qualifi ed personnel in the region. We therefore

anticipate a growing demand for our courses.

EMIRATES AVIATION COLLEGE



As a veteran in the Middle East education

sector, the Gulf University for Science

and Technology (GUST) has proved its

mettle with a diverse range of courses.

In particular, the GUST Logistics Forum

(GLF) – its dedicated facility for the

logistics sector – has produced a new

generation of supply chain professionals

this year, helping to combat the industry’s

continued skills shortage. “GLF provides

networking and industry information

to students interested in the fi elds of

logistics and supply chain management,”

explains Professor Philbert Suresh,

course instructor and founder of GLF.

Highlighting its eff orts to promote

logistics in the Middle East, GLF is

planning to launch a publication on the

regional industry, which is scheduled

for publishing in 2010. To research the

book, Suresh launched an online survey

on the university’s website, which has

already received a positive response

from the public. “Th e book will cover the

evolution of transportation in countries

such as Kuwait, Qatar, Saudi Arabia,

Bahrain, UAE and Oman,” he explains.

“We’re hoping this publication will

inspire young minds and help to create

a better understanding about Middle

East logistics, not only in this region, but

throughout the world.”

GULF UNIVERSITY OF SCIENCE AND TECHNOLOGY (GUST)

LOGISTICS EXECUTIVE

Logistics Executive commenced its operations

in the Middle East and Africa around

fi ve years ago, trading under its previous

incarnation of Logistics Recruitment. Since

then, the Australian company has successfully

developed its presence in the local logistics

industry, targeting service companies, such

as freight forwarders and 3PLs, in addition to

manufacturers and distributors.

“Th e massive economic growth in GCC

countries, fuelled by oil revenues and

liberalisation, has been a boon for recruitment

companies in the past few years. However, this

didn’t make the recruitment process any easier,

because more companies are chasing fewer

candidates and organisations are struggling

with both the talent shortage and employee

retention issues,” says Nigel Moore, Logistics

Executive’s managing director in the Middle

East and Africa. “Following our rebranding in

2008, Logistics Executive has continued to grow

as a business, not only in the scope and volume

of work, but also in terms of geographical reach.

We have a growing number of clients using our

services to fi ll roles in all corners of the Middle

East, Africa and surrounding areas.”

Despite its success, Moore admits that the

company is continually challenged in the

Middle East, as rising costs make the region

less attractive to international talent than in

previous years. In addition, a further series

of hurdles has been created from the global

recession in 2009.

“We have spent quite some time during the

year on new attraction strategies and working

closely with clients to improve their hiring

process. With talent being so critical to success

in this dynamic market it’s essential that

companies get their recruitment programmes

working eff ectively,” he says. “As global

economies compete heavily with the Middle

East for available talent then the shortage

of logistics professionals will be a growing

challenge. Unsurprisingly, our clients have

faced diffi culties in attracting and retaining

the right talent and there is more emphasis

being placed on retention than ever before.”

Th e Dubai campus of Middlesex University

London, which opened in January 2005, has

more than 1300 students from over 70

MIDDLESEX UNIVERSITY DUBAI

nationalities and off ers 25 undergraduate

and postgraduate programmes in a variety

of subjects. Th is year, the university has also

drafted plans to establish a centre of excellence

in supply chain management with a leading

logistics company in the region.

“Logistics is currently taught as part of BBA,

BSc degree and the prestigious Middlesex

MBA. Plans are under way to introduce a

masters degree in logistics and short certifi cate

courses will also be launched,” says Professor

Cedwyn Fernandes, MBA campus programme

coordinator and associate professor in

economics and international business.

Th e university’s strategy is to align itself with

developments in the region and it anticipates a

huge demand for trained professionals in this

industry. “We have conducted research with

employers and prospective students,” adds

Fernandes. “Employers almost unanimously

bemoan the lack of trained professionals

in logistics and both prospective students

working in the fi eld and those wanting to join

this industry have indicated the need for a top

class degree in logistics.”

49

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MORGAN INTERNATIONAL

INTERVIEW: FADI GANNI, CEO OF MORGAN INTERNATIONAL

How strong is demand for logistics training courses in the Middle East?Training courses have played an important

role in supporting the growth of countless

industries in the Middle East, from travel and

tourism to manufacturing and retail. However,

with a limited quota of specialist programmes

for supply chain professionals, the region has

expressed a requirement for suitable courses to

help standardise its logistics sector, especially

in terms of matching the best practices from

Europe and North America.

How has Morgan International worked to capitalise on this gap in the local market?As a Middle East training company with a solid

track record for delivering results since 1995,

Morgan International off ers a diverse range of

professional training that leads to certifi cation.

We initially started with two locations

(Lebanon and Jordan), but the company has

since expanded to 26 locations over the past

14 years, covering the Middle East, as well as

parts of Africa and the Indian subcontinent.

Although we initially focused on accounting,

our courses have diversifi ed into logistics and

supply chain management, as well as human

resources, treasury, internal audit and even

soft skills. We actively help candidates succeed

in professional certifi cation exams by being

highly effi cient, maintaining standards and

off ering distinctive support and follow-up. To

best achieve this, we partner with companies

to provide their staff with tailor-made training

solutions that suit their specifi c requirements.

What topics are covered in your courses?At present, there are four categories in

the curriculum for our logistics training

programmes, which are supply chain

management fundamentals, building

competitive operations planning and logistics,

managing customer and supplier relations, and

using information technology to enable supply

chain management. Each of these categories

has several subdivisions, which refl ect the

Association for Operations Management

(APICS) Certifi ed Supply Chain Professional

(CSCP) body of knowledge and provides the

participant with a broad view of international

supply chain management.

What factors have supported the growth of logistics training in the Middle East?If you look at the local market today, there

is growing demand for a unifi ed body of

knowledge. Th e amount of knowledge and

benefi ts a professional certifi cation gives is the

same, regardless of whether it’s in the Middle

East, North America or Europe. In addition,

companies are looking for individuals who

are more focused on the function they

are hired to do, and the types of

certifi cations that are provided by

our company can achieve that.

Has demand been impacted by the global recession in 2009?Th e recession has placed a strain

on the training budgets. At the

same time, companies that value

their workforce will invest in

training and development

to ensure that employees

are up-to-date, have

the technical skills to

perform their job and it

also acts as a useful

retention programme.



With a growing list of education institutes

looking at specialist logistics courses, the

University of Bolton in Ras Al Khaimah (RAK)

was the latest to join the bandwagon last year

with its postgraduate programme in supply

chain management.

Th e faculty is covering a range of diff erent

topics with a theoretical approach in order to

enhance their relevance to logistics operations

in the Middle East and beyond. In addition,

the fl exible nature of the MSc programme

includes lectures being held on weekends to

encourage a wider number of professionals to

enrol without aff ecting their work schedules.

“Th is postgraduate programme is designed to

address the needs of both the manufacturing

and service services, with a detailed curriculum

in supply chain management,” explains Raj

Nambiar, director of administration at the

University of Bolton in Ras Al Khaimah (RAK).

Further to the successful launch of its

postgraduate programmes, the university is

planning to launch short term and CPD courses

Looking at the Middle East’s education

sector in 2009, a range of logistics

courses are being off ered by colleges and

universities across the region. However,

six years ago when S.P. Jain Centre of

Management opened its campus at

Dubai Knowledge Village, the scene was

vastly diff erent. In fact, when the Indian

business school announced its MBA in

global logistics, it was truly ahead of

the game. “Th e importance of supply

chain management in determining the

profi tability of companies has never

been greater, especially with the global

recession in full eff ect,” states Dr Rajiv

Aserkar, professor of logistics at SP Jain

Center of Management in Dubai. “With

our early specialisation in the subject, we

are perfectly placed to train students in

developing eff ective logistics strategies to

gain competitive advantage.”

A wide spectrum of topics is covered

in the postgraduate course, including

managerial skills, supply chain network

designs, transportation management, and

performance based logistics. In addition

to the Middle East campus, which is now

located at Dubai International Academic

City, some of the modules are taught at

the business school’s facility in another

global logistics hub – Singapore.

“We have experienced a number

of highlights this year, including a

partnership with the Dubai Department

of Economic Development (DED) to

undertake various applied learning

projects in relation to logistics. Th ese

are underway and we hope to establish

new opportunities for the UAE’s logistics

sector,” continues Aserkar. “In addition,

our crowning achievement was receiving

the Supply Chain and Transportation

Award (SCATA) 2009 for Training and

Education Provider of the Year.”

UNIVERSITY OF BOLTON IN RAS AL KHAIMAH

SP JAIN CENTRE OF MANAGEMENT

THE TUTELAGE

in logistics next year. “We have initialised a plan

to link with corporate organisations in the UAE

as well as the rest of the Middle East to help our

students gain from guest lectures and receive

professional assistance in tackling complex

problems of today’s work places, in addition to

helping students secure quality internships and

placements,” he adds.

Th e MSc programme has been accredited

by the Chartered Institute of Logistics and

Transport (CILT) and the Chartered Institute of

Purchasing and Supply (CIPS).

Following years of success as a logistics

training provider in the Middle East, it seemed

the perfect opportunity for Th e Tutelage to

expand its operations around the world in

2009. With a slow and steady approach, the

Dubai-based company has entered a number

of lucrative markets this year, including

the United Kingdom, Switzerland, Turkey,

Malaysia and Pakistan. Th e strategy has paid

dividends too, according to managing director

Muhammed Asghar, who claims the number

of students attending his courses has almost

doubled in comparison to last year, reaching

approximately 400 people around the world.

“In the past, we have covered the entire

spectrum of supply chain management for

students in the Middle East. However, a lot of

these topics have the same relevance in other

parts of the world, so our global expansion has

been seamless,” states Asghar. “In addition to

these universal topic areas, we have also used

a number of case studies from the Middle

East to showcase how regional companies are

achieving supply chain excellence. In many

cases, we are leading the fi eld over here and

companies in Europe, North America or Asia

could learn from this.”

Despite its success abroad, Th e Tutelage has

remained loyal to its Middle Eastern roots, with

an increasing number of courses being off ered

in the region. In particular, the company has

experienced growing demand within the

telecommunications sector, securing contracts

with industry giants such as Etisalat and

Saudi Telecom. “Our consultants are industry

leaders who posses over 20 years of experience

in management and training,” states Asghar.

“Th e business has performed very strongly

this year and the feedback has been very

positive. We provide evaluation forms after

each course and this year we have averaged a

customer satisfaction rate of 97.8%, which is

very encouraging.”

“Give all my cargo undivided

attenti n.”

Go ahead, challenge us.At Agility, we make it our business to pick up as promised, ship as scheduled, track every move and deliver on time, every time. So we’re not only providing reliable solutions to deliver your freight, we’re managing every move down to the last detail.

...............................

© 2009 Agility Logistics AG

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�



Th e University of Wollongong in Dubai

(UOWD) launched its postgraduate course in

logistics last year to support Dubai’s growth

as a global centre of excellence for the supply

chain industry. Earlier in 2009, the fi rst batch

of students from the Master of Science (MSc)

programme graduated, after learning about

a range of diff erent topics, such as warehouse

information systems, inventory management

and strategic supply chain design.

“Th e logistics programme has been

structured to develop the skill base of students

and allow them to advance into positions of

greater management responsibility. In addition,

students get hands-on experience in working

with various logistics design software to help

them prepare for life in the industry,” explains

Dr David van Over, UOWD’s Faculty Dean of

Business and Management.

“In terms of student admission, our autumn

intake has refl ected a recovery from the

economic slowdown and promising future of

this programme,” he adds.

Th e university also established a partnership

with Maersk Logistics this year to research a

number of supply chain management topics.

“Th is partnership represents a great honour

for UOWD, as there are a handful of business

schools worldwide that enjoy such status,”

continues Dr van Over. “As part of the initiative,

a series of guest lectures have been arranged

with Maersk Logistics experts this year to

reinforce the student learning process. Th is

experience has been appreciated by our

students as it enriches their learning process.”

In addition to this, UOWD’s faculty is

working with Maersk on numerous research

UNIVERSITY OF WOLLONGONG IN DUBAI

INTERVIEW: UMER SHAMS ARAKKAL, REGIONAL HEAD OF X|VISE INNOVATIVE LOGISTICS

How long has Xvise Innovative Logistics been active in the Middle East market?Following our successful launch in Austria

around 10 years ago, the Xvise management

team has searched for opportunities to expand

its business into other parts of the world. Th e

growth of logistics activities in the Middle East,

Africa and Asia was particularly impressive and

a decision was made to launch a central offi ce

at Dubai Airport Free Zone to overlook these

regions. Th at was back in 2006 and we now have

a dedicated team of consultants with expertise

in procurement, warehousing, distribution,

transportation, and project management.

What are some of the common issues that customers need to address in this region?A number of companies are looking to boost

their productivity and need the advice of

experts to help with the restructuring and

reorganisation of their operations. In some

cases, a strategy has already been implemented

and failed, so it’s a case of damage control. We

also receive a lot of interest from companies

that have allocated a budget for new technology

solutions or material handling systems, but

need assistance with the selection process.

How much of a concern has the global recession been for customers in 2009?Th e logistics industry has not experienced

this level of recession in the past 50 years and

companies are searching for ways to restructure

their operations and keep their costs under

control. At the same time, it’s still essential to

maintain service levels and honour any prior

commitments. Th is is where a consultancy

fi rm can provide their expertise and onsite

management services.

What are your predictions for the future of logistics activities in the region?I think the United Arab Emirates has set a

benchmark for the rest of the Middle East to

emulate in terms of infrastructure, customs

regulations, freight forwarding, warehousing

and transportation. However, under the global

recession, there will be a short-term drop in

warehousing and transportation prices and

when that’s combined with a fall in demand, I

think the 3PL sector will be involved in a price

war. In the long-term, the market will start to

grow, although the pace will be slower and

steadier than the previous 10 years.

How will Xvise prepare for this growth?Dubai will remain our central base for the

Middle East, although we’re also looking at

market opportunities in Saudi Arabia, Kuwait,

Jordan and other regional countries. In addition,

we feel there is defi nitely scope for Xvise to

introduce its specialisation in the Indian

subcontinent, which holds a lot of appeal.

X|VISE INNOVATIVE LOGISTICS

topics, such as supply chain security and

sourcing trends, humanitarian logistics, port

container handling and green logistics. “We

are looking to establish a research laboratory

on Radio Frequency Identifi cation Technology

(RFID) at UOWD in the near future,” says Dr

van Over. “Th is will add another milestone

to the curriculum, while providing a support

system for local logistics companies to improve

their business processes.”


EMIRATES SUPPLY CHAIN FORUM (ESCF)

ANNUAL REVIEW 2009: TRADE ASSOCIATIONS

ALEX BORG, REGIONAL DIRECTOR OF THE CHARTERED INSTITUTE OF LOGISTICS AND TRANSPORT (CILT)

Can you provide a backdrop to CILT’s history as a global logistics trade association?We were established in 1919 for professionals in

the supply chain and transport industry. Th ere

are currently 30,000 CILT members around the

world, with our headquarters in the UK and

branches in 30 diff erent countries, including

North America, Australia, Hong Kong, Pakistan

and the United Arab Emirates.

What are the core objectives of CILT?Th e primary focus is providing our members

with relevant and valued services, which also

lead to higher standards within the supply

chain and transport industry. It’s important

for people to adopt leading-edge thinking and

best practice to push the industry forward,

especially in these times of global uncertainty.

When did the trade association establish a presence in the United Arab Emirates?We launched a branch in Dubai around seven

years ago to support a growing number of

members that are based in this region. Th e

response has been very encouraging and

Emirates Group has since agreed to sponsor

our activities and provide an offi ce in Dubai.

TRADE AA SSSSOCOCII AATTIIOONNSS

How many members have been signed in the United Arab Emirates?We have approximately 150 members

from across the shipping, transport and

logistics industry, although this number

continues to increase on a monthly basis.

In particular, CILT is proud to have His

Highness Sheikh Ahmed bin Saeed Al

Maktoum, chairman of Emirates Group,

as our patron in this country.

Are the other trade associations in this region considered competition?On the contrary, we have already formed

a successful partnership with Emirates

Supply Chain Forum (ESCF) and plan

to align our activities with associations

such as the Supply Chain and Logistics

Group (SCLG) and National Association

of Freight Logistics (NAFL) in the future.

What have been the highlights of CILT’s regional operations in 2009?Our logistics events at Emirates Aviation

College were really successful this year

and we even broken our attendance

record with a seminar in October 2009,

which attracted more than 230 people

from countries such as the United Arab

Emirates, Oman, Qatar, Bahrain, Kuwait

and Saudi Arabia. Some of our guests

even travelled from Sudan and Nigeria.

Are you planning to develop CILT’s Middle East presence next year?Yes, there are basically four stages in

our development plan, starting with

a membership drive to attract more

logistics professionals from the United

Arab Emirates and make them a part of

the CILT family. Second, we want to boost

our range of professional courses, which

is something this market really needs.

Th ird, we will arrange a larger number

of programmes and networking groups.

And fi nally, we want to expand into other

countries in the region, such as Saudi

Arabia, Kuwait and Bahrain.

Following a number of initiatives to increase

its presence within the logistics industry, the

membership numbers of Emirates Supply

Chain Forum (ESCF) have increased to

more than 200 people in the past year, with

a focus on the United Arab Emirates and

other countries in the Middle East and Indian

subcontinent. “Our members originate from

across the logistics and supply chain sector,

with representatives from the Galadari Group,

Daewoo, CWT-SML Logistics, Al Maha Resort,

Spinneys and Samsung,” explains Kishore Sasi,

chairman of ESCF and warehouse manager of

Business Automation and Security Systems

(BASS). “Th e board members all met through a

logistics course in Dubai and were encouraged

to continue interacting by opening a website

forum. With the success of our online group, we

decided to host a series of meetings and things

have continued to develop as a result.”

ESCF’s activities in 2009 have included a

number of fi eld trips and training sessions,

covering everything from warehousing and

transportation to material handling and supply

chain technology. “Th e logistics industry is

evolving at a rapid pace and looking back on

the past year, our group has experienced a

number of signifi cant developments,” says Sasi.

“In particular, we extended our partnership

with the Chartered Institute of Logistics

and Transport (CILT) and started an in-

house chapter to train members in eff ective

communication and leadership.”

CHARTERED INSTITUTE OF LOGISTICS AND TRANSPORT (CILT)


ANNUAL REVIEW 2009: TRADE ASSOCIATIONS

Keeping pace with the changing face of logistics

in the Middle East is sometimes a challenge.

However, with responsibility for looking after

the interests of the sector, it’s a challenge that

the region’s veteran trade association, the

Supply Chain and Logistics Group (SCLG), has

taken very seriously in 2009.

Operating with the legal backing of the

Dubai Chamber of Commerce and Industry, its

been another year of growth for SCLG, with an

increasing number of companies, individuals

and students signing up for membership over

the past twelve months. In fact, with a focus

on boosting membership numbers in 2009, the

association has welcomed a variety of prominent

names, including the likes of Oracle, Dubai

Investment Park, Ehrhardt + Partner Solutions

(EPS), Kanoo Group, Morgan International,

ProLogis and the University of Liverpool.

Representatives from these companies were

also present at SCLG’s second annual Global

logistics and SCM Strategy Summit, which was

held at the Westin Mina Seyahi Hotel in Dubai.

More than 200 delegates took part in the full-

day conference, with speakers and delegates

travelling from various Middle Eastern

When it comes to logistics trade

associations in the Middle East, the

Jordanian Logistics Association (JLA)

is a relative newcomer, established in

October 2007 to support the development

of Jordan’s warehousing and distribution

sector. With support from heavy hitters

such as Jordan’s Ministry of Transport

(MOT) and the International Federation

of Freight Forwarding Associations

(FIATA), its little surprise that JLA has

attracted a growing list of corporate

members, including the likes of Agility,

DHL and TNT Express.

“Logistics companies and freight

forwarders are major components

of Jordan’s transportation industry.

However, until now, we have lacked an

offi cial association to represent these

companies and encourage greater levels

of industry growth,” explains JLA’s

president Nabil Khatib. “As a result, we

were established to protect the interests

of members, raise industry standards,

and take part in the implementation

of regulations and laws in cooperation

with the concerned authorities.”

JLA hosted a number of events

during its second year of operations,

including its fi rst general assembly

meeting in March, which was attended

by two thirds of members. “Most of

the attendees were very positive about

our recent achievements and JLA’s

general balance sheet was approved

accordingly,” adds Khatib. “However,

we expected to double our membership

numbers in 2009, but this was impacted

by the economic crisis and we only

achieved half of that number. Th ere are

signs of a recovery though and we look

forward to a healthier increase in 2010.”

SUPPLY CHAIN AND LOGISTICS GROUP (SCLG)

JORDANIAN LOGISTICS ASSOCIATION (JLA)

NATIONAL ASSOCIATION OF FREIGHT AND LOGISTICS (NAFL)

countries, in addition to Singapore, India and

the United Kingdom.

“Our second Global logistics and SCM

Strategy Summit was a big success and focused

on the latest strategies for managing global

supply chains,” says Dr Kanak Madrecha, SCLG

consultative committee member. “We had 18

speakers in total, in addition to 36 panellists,

six moderators and six track leaders. In fact, the

response was so strong that we have already

announced a follow-up for 12th May 2010.”

Another SCLG event in 2009 included an Iftar

networking session for its recently-launched

Young Professionals Initiative, which aims

to connect the industry with people that are

starting a career in logistics.

As the United Arab Emirates division of the

International Federation of Freight Forwarders

Associations (FIATA), it’s the responsibility

of the National Association of Freight and

Logistics (NAFL) to encourage the development

of the country’s logistics industry. Although

many organisations would consider this

overwhelming remit a challenge, the association

has succeeded in a number of importance

milestones this year, including progress in

making liability insurance a mandatory

requirement for logistics companies operating

in the country. “Th e association was formed in

1992 with the objective of upholding standards

in the logistics industry. We have worked really

hard from the very beginning and we are now

starting to see results, especially this year”

explains Captain Mansoor Ghafoor, NAFL’s

president for the past eight years.

Vocational training has always remained a

key objective for the NAFL, covering the entire

spectrum of supply chain management. Th is

was reinforced in 2007, when the association’s

diploma in freight forwarding was offi cially

validated by FIATA following a two-month

accreditation process. Interest has continued to

grow ever since, with more and more students

being enrolled in 2009. “Training is essential

for the industry and helps to protect the image

of Dubai. After all, if logistics companies are

performing unethically or below standard,

this could potentially harm the industry’s

reputation,” says Ghafoor. “NAFL received a

further boost this year as we hosted the Train

the Trainer (TOT) programme, where specialist

trainers from other national associations

came together to impart training skills. Our

association is also in the process of signing

a Memorandum of Association (MoU) with

these bodies to procure skills and resources to

develop training opportunities in our region.”

logistics me - dec 2009

Documents

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middle east logistics

challenging year

years supply chain

middle eastthe highs

past year

months issue

annual review issue