logistics middle east - may 2010

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSMAY 2010 ISSUE 68

GAC LOGISTICS І DNATA І TTL SHIPPING & LOGISTICS І AGILITY І SSI SCHAEFER

An ITP Business PublicationLicensed by Dubai Media City

WISE INVESTMENTSA look at the multi-billion dollar logistics complex at Dubai Investments Park

POWER PLAYERCelebrating Jafza’s 25th anniversary of operations with CEO Salma Hareb

BAHRAIN BRILLIANCERevealing the Kingdom’s grand masterplan to turn its logistics zone into the Middle East’s most awaited warehousing hub

AGILITY І SSI SCHAEFER

TOP 10 MIDDLE EAST WAREHOUSE HUBSWHICH DEVELOPMENTS HAVE TOPPED OUR ANNUAL LIST IN 2010?

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CONTENTS

www.arabiansupplychain.com | May 2010

CONTENTS

02 Editor’s LetterA celebration of the Middle East’s growing portfolio of warehouse developments.

04 Readers LettersReaders of Logistics Middle East provide their views on the industry’s hottest topics.

07 News Update• United States Defence Logistics Agency

(DLA) replaces Agility as regional partner• CEVA to expand Middle East warehousing • Diversey signs contract with RSA Logistics• Dnata opens new carbon neutral terminal• GAC delivers giant transformers in Kuwait• FedEx provides support to ‘fl ying hospital’• Momentum Logistics expands UAE offi ces• Al Hassani goes live with Exactus system• EPS opens facility in Dubai Logistics City

Issue 68 May 2010

16 ArabianSupplyChain.comHighlights of the month from the offi cial website of Logistics Middle East magazine.

18 Top 10 Warehousing HubsWith massive investments in the Middle East’s warehousing portfolio, which of the region’s trade zone have been included in Logistics Middle East’s Top 10 list for 2010?

24 Cover: Bahrain Logistics ZoneHow Bahrain Logistics Zone (BLZ) has been marketed as the Middle East’s most promising development for storage and transportation.

28 Profi le: Jebel Ali Free ZoneCelebrating the 25th anniversary of Jafza operations with Salma Hareb, chief executive offi cer of Economic Zones World (EZW).

32 Dubai Investments ParkWhy DIP’s fi nal phase of development will be a fl agship 500,000m2 logistics complex.

40 Ask The ExpertGAC’s Phil Showering explains the factors to consider in the selection of a warehouse hub.

42 Facts And FiguresTransportation statistics from a variety of regional and international sources.

46 Events CalendarA listing of seminars, conferences and trade shows for the Middle East logistics industry.

48 Face To Face InterviewA look at the success of TTL Shipping and Logistics in confl ict zones around the world.

07 28 40

For the latest news and stories go to

24

2 MAY 2010 | www.arabiansupplychain.com

EDITOR’S LETTER

2

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Celebrating the Middle East’s warehouse hubs

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s the Middle East continues to develop its portfolio ofwarehouse hubs, the options available for companies has never been greater. Of course,

selecting the most appropriate base for your supply chain operations is probably one of the most important decisions a company can make, with little room for mistakes. Th is month’s issue of Logistics Middle East is therefore an essential resource for anyone that has committed to opening a warehouse facility, but has been overwhelmed with the sheer scale of developments in countries throughout the region.

With Jebel Ali Free Zone celebrating its 25th anniversary of operations, the timing for this month’s theme is perfect. We are joined by Salma Hareb, chief executive offi cer of Jafza’s parent company Economic Zones World (EZW), who looks back at a fl urry of activity in the past two-and-a-half decades, which have seen desert land near the port transformed into one of the world’s most successful logistics trade zones.

Our cover story on Bahrain Logistics Zone, together with a profi le of the supply

Achain complex being developed at Dubai Investments Park, also highlights some of the projects to watch in the future. Both of these developments have created a great deal of buzz within the industry and promise to support the Middle East’s fl ourishing reputation as a world-class logistics hub.

Finally, we roundup the theme with a top 10 list of developments in the region and an expert column from Phil Showering, general manager of logistics services at GAC Dubai, who highlights the factors that companies should consider when making a choice between the Middle East’s various trade zones.

And which of these warehousings hubs have been short-listed for trophies at this year’s Supply Chain and Transport Awards (SCATA)? Our latest update on the event includes a complete list of fi nalists, which you will fi nd on pages 36-38.

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

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4 MAY 2010 | www.arabianbusiness.com/transportation

READERS LETTERS

The Middle East’s business community

has produced an overwhelming number

of success stories over the years, with

common tales of small enterprises

growing into regional and sometimes even

international powerhouses. It’s perhaps the

local entrepreneurial spirit and determina-

tion to succeed that has resulted in count-

less businessmen turning their ambitious

dreams into profitable realities.This is certainly the case with Nidal

Haddad, the chief executive officer of Al

Bayader International, who started his

business operations back in 1990 as a

humble supplier of foodstuff packaging.

Today, his company has turned into a

multi-million dollar player in the regional

marketplace, with plans to significantly

expand operations in the coming years.

“I look at the birth of Al Bayader Inter-

national as the beginning of an adventure,”

Haddad explains. “It’s been an exciting

journey and we’ve gained unrivalled

market knowledge and understanding

of the business challenges faced by our

customers. I would say our success has

been built on creating excellent partner-

ships and providing customers with the

highest standards in innovative packing

solutions.”Al Bayader has attempted to differenti-

ate itself from competitors by providing

customers with an innovative catalogue

of disposable products, which are heavily

focused on vibrant colours, sleek finishes

and groundbreaking functionality. It’s

certainly a bold move away from the

more traditional designs available in the

marketplace, which Haddad describes as

“potentially bland and boring”.“The fact that Al Bayader’s products

stand out strongly on supermarket shelves

has given the company another edge over

the competition,” he says with confidence.

“We don’t settle for run-of-the-mill solu-

tions and want to think outside the box

when designing our portfolio of products.

The complete packageCurrently amidst a US$22 million expansion programme, Al Bayader International

has heavily invested in a state-of-the-art warehousing facility in Dubai’s Jebel Ali

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Founded in 1973 with a single store in Bahrain, the Landmark Group has emerged as one of the Middle East’s most successful retailers, with over 900 stores across the region, in addition to India, Pakistan, Turkey and Egypt. Although its widespread growth is a matter of pride for the group’s chief executive officer Vipin Sethi, the businessman has little time to celebrate his achievements, with a jam-packed diary often filled with responsibilities for his diverse portfolio of retail brands, which encompasses footwear and accessories (Shoe Mart), fashion (Splash), children’s clothing (Baby Shop), furniture (Home Centre and Q Home Décor) and home décor (Lifestyle).Besides retail, the Group has also diversified into leisure, food and hotels segments with Fun City (Chain of indoor entertain-

ment centres for children and teens), Foodmark (Division franchising Mango Tree, The Meat Company, Carluccio’s, La Gaufrette, Bazerkan and Ushna) Gourmet Station (Specialty food offering store), Spaces (Grooming and relaxation centres) and Citymax Hotels (Comfortable budget hotels). “We provide a value-driven product range for the entire fam-ily and quality is not a question of price for Landmark. Across our retail concepts, the company has strived to provide value at every price point,” he explains. “Our various offerings have evolved into the preferred choice for consumers and have become category killers.”

While a number of chief ex-ecutives have made similar claims in the Middle East, the fact that Landmark Group has achieved a

Landmark achievement

Efficient logistics ifor Landmark Group, states CEO Vipin Sethirclar claimsclaimsclaimsms dle Ease Ease Easdle EasEassEast tht tt tht, thet, the fact, the fact, thht, the fact tht, the fact th, the fact thathe fact thahe fact thatthe fact thhhact thaae fact thaatfact that faaacctt tt thaLandmarkandmarkGLandmarkLandmark Grondmark Groudmark Groupmark Groupark Grouphmark Grouphamark Grouphamark Groupppark Grouphrk Grouphhuphak Group hadma rooark Grouuup haGGG s achieved a s achieved

Caterpillar has emerged as one of the

world’s most recognised brands, with

products and components being manu-

factured in 50 facilities across the United

States, in addition to more than 60 other

locations in 23 countries throughout

the world.

“Caterpillar is the world’s leading

manufacturer of construction and mining

equipment, diesel and natural gas engines

and industrial gas turbines. The company

is also a leading services provider through

Caterpillar Financial Services, Caterpillar

Remanufacturing Services, Progress

Rail Services and Caterpillar Logistics

Services,” states a spokesperson. “For

more than 80 years, we have been building

the world’s infrastructure, and in partner-

ship with various dealers, Caterpillar is

driving positive and sustainable change on

every continent.”

In Dubai, Caterpillar Logistics operates

a flagship PDC (or Product Distribution

Centre) for finished machine product. The

concept behind the PDC involves a distri-

bution strategy that has been developed to

increase the velocity of products through

the supply chain and therefore improve

delivery time to dealers. “Essentially, the

PDC provides high levels of sustained

service, short availability, and limited

configuration choices,” he continues.

Caterpillar imports machines such as

HEX and Motor Graders from China,

Japan and Belgium, in addition to con-

tainer loads of buckets from Hungary,

USA and South Africa. “Machines are

then exported from the PDC by road and

ocean to Middle East

destinations. Therefo

as the PDC’s locatio

hub location as wel

facilities,” explains

In an effort to im

cost reduction and

Industrial strength in th

International powerhouse Caterpillar has awarded a supply chain contract

to Al-Futtaim Logistics to improve its operations in the Middle East region

The flagship Al-Futtaim Logistics warehouse in Jebel Ali will mana

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The economic growth of the

Middle East has turned the region

into an exciting playground for

Toys”R”Us. But what tricks does

the global retailer have up its

sleeves to manage its increasingly

complicated supply chain?

One could be forgiven for

assuming that supply chain man-

agement for toy retailers is fun and

games. After all, the operations are

largely unburdened by the stringent

requirements of a pharmaceutical

cool chain, for example, or the

transportation of hazardous cargo.

However, the logistics chal-

lenges facing today’s toy retailers

actually lie within the fickle nature

of the market itself.

The latest gadget being cov-

eted by millions of children one

day can easily be forgotten and

replaced with a completely differ-

ent alternative the next.

With the industry relying

heavily on anticipating what toys

are going to sell best, and to what

extent or volume, further issues,

such as short product life, speedy

product turnover and seasonal de-

mand, can also present challenges

for the supply process.

The silver lining to all of this

is, of course, the big booming

business that toys bring along

with them - and in this respect

the Middle East region has been

thriving. According to sources,

the UAE is ranked eighth in the

top ten toy importing countries in

the world.With the Middle East toy

market itself estimated at a hefty

US$1.5 billion per year, with an

impressive 11.8% annual growth

rate, setting up a successful toy

Toy story

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d Q d Q Hdécor (Since its establishment as Saudi Arabia’s

first pharmacy in the 1920s, the Tamer

Group has handled the promotion and

distribution of numerous market-leading

healthcare brands in the Kingdom, includ-

ing Novartis, Roche, Covidien, Johnson &

Johnson, Pfizer and UCB Bristol Meyers.

However, its partnership with global power-

houses has not been limited to this sector

alone, with successful forays into consumer

goods distribution for the likes of Nestlé,

Cadbury Chocolate, Proctor & Gamble and

luxury brands such as Gucci, Valentino and

Mont Blanc, to name a few.

“Saudi Arabia is a very large market

and we cover the entire Kingdom, in

addition to other Middle Eastern markets

such as Bahrain and Yemen,” explains

Mohammed Tamer, managing partner of

the Tamer Group.

With such diverse activities, a lot of

businesses would struggle to cope with

their supply chains. However, over the past

90 years, the Tamer Group has developed

a world-class system for its warehousing

and transportation, with storage facilities

located in Jeddah, Riyadh, Khobar, Abha,

Madina, Tabuk and Qasim. Earlier this

year, the latest addition to this network

- a 58,000m2 distribution centre - was

launched in the Al Khomra district of

South Jeddah. The warehouse has already

received a string of accolades, including

ISO 9001:2008 certification, approval

from the Ministry of Health, and a Good

Warehousing Practices (GWP) award

from Nestlé.

The new facility was opened after the

Tamer Group received instructions from

the Ministry of Health to move from its

current location in the heart of the city.

However, with a much larger amount of

space than its predecessor, Tamer argues

that the facility was also essential to

support the company’s business growth

and enhance its supply chain operations to

international standards.

“Our warehouses are usually split

function, with healthcare in one section

and consumer in the other,” he says. “This

latest facility has been approved to store

pharmaceutical products and includes a

24,000 pallet capacity, with individual cham-

bers for the different types of goods. It will

truly enhance our Middle East distribution

network and provide value-added services

to customers.”

The Tamer Group sources its

products from a number of international

locations, with a primary focus on Europe

and the Far East. “Our products are

transported by a combination of seafreight,

airfreight, courier and land transport

to Saudi Arabia,” says Tamer. “Most of

uccess in Saudi

Tamer Group expands its

warehousing footprint in South Jeddah

Saudi Arabia’s Tamer Group has opened a 58,000m2 distribution centre in Jeddah

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NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSAPRIL 2010 ISSUE 67

DUBAI INVESTMENTS PARK І AGILITY І KANOO FREIGHT І BITO І DUBAI CUSTOMS

An ITP Business PublicationLicensed by Dubai Media City

LEASING LOWDOWN Cluttons marks the first anniversary of its Middle East warehousing service

RECRUITMENT TRENDS Keeping track of the latest recruitment trends in the regional logistics sector

A LOOK AT THE EXPERTS THAT MANAGE SOME OF THE REGION’S MOST CHALLENGING AND COMPLEX SUPPLY CHAIN OPERATIONS

Behind the scenes

32 APRIL 2010 | www.arabiansupplychain.com

WAREHOUSE LEASING

33

WAREHOUSE LEASING

www.arabiansupplychain.com | APRIL 2010

Sharjah, Bahrain and Oman. And with 15 years of experience in the sector, his skills and experience have been instrumental in developing a solid foundation for the first year of operations.“The team carries out activities that were previously managed by our clients in-house, who perhaps lacked sector specific knowledge. By employing individuals with specialist skills in this market, we have won a number of high profile clients who are keen to benefit from our service provision,” continues Wright.Cluttons is marketing a number of services as part of the industrial and logistics team, including consultancy and research, funding, acquisition and property searches, disposal agency and marketing, estate management and valuation.

Although some would question the decision to launch such a venture in the midst of a global recession, especially

he growing number of warehouse developments in the Middle East has proved a mixed blessing for those planning to lease a regional storage facility. While the variety of options has certainly increased in recent years, so has the complexity involved in researching the market and selecting the ‘best fit’ for your supply chain operations.Since a poor decision could make the difference between triumph and failure, its essential that companies ask themselves a variety of questions to ensure the selection process is successful in the long-term. For example, what are the specifications of the warehouse? Does the location have suitable links for product transportation? How does the leasing costs compare to other nearby developments?Of course, this scenario is prevalent outside of the Middle East too, although developed regions such as Europe and North America are equipped with specialist agencies that scour the market on behalf

T of clients and present them with the most suitable options. While such services have traditionally been scarce in this part of the world, real estate heavyweight Cluttons conducted a feasibility study in 2008 to determine whether the concept had much potential in the Middle East. The results were so encouraging that a dedicated team was setup in January last year to provide a direct link between warehousing landlords and prospective clients.“Our industrial and logistics team was established to provide a comprehensive service to clients operating in this growth sector, building on our 30 years of experience in the Middle East and North Africa, while also supporting the development of this region as a global logistics hub,” explains Will Wright, who was hired to establish the division with a team of specialists working across Cluttons’ regional offices in Dubai, Abu Dhabi,

Real estate veteran Cluttons has launched an industrial and logistics team to walk clients through the warehouse leasing minefield in the Middle East.

with the corresponding downturn in Middle East logistics, Wright believes it was actually the perfect time to establish his team in the region. After all, a number of existing developments, such as Jebel Ali Free Zone and Dubai Investment Park, are still expanding to meet customer demand, while emerging ventures such as Dubai Logistics City, Bahrain Logistics Zone and Prince AbdulAziz Bin Mousaed Economic City have continued to attract multi-million dollar investments.“The reaction from existing clients has been very encouraging and we have been awarded a significant amount of instruction from them, in addition to new clients being added to our portfolio. Despite the wider economic climate, it has been a very positive period and the timing seems to have been ideal,” he argues.

“The quality of the business parks and the specification of property is also improving in the region to meet the internationally recognised standards. Rising values over the last 10 years coupled by operators seeking to focus capital on core business has led to the emergence of a leasing and investment market. This provided us with an opportunity to further assist clients. We believe Cluttons is the first firm to offer this service line to the market.”

“The team carries out activities that were previously managed by our

clients in-house”

“The team carries out activities that were previously

naged by our lients in-house”

With 15 years of experience, Will Wright was hired to establish the industrial and logistics division for Cluttons

XXX

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7www.arabiansupplychain.com | MAY 2010

NEWS UPDATE

Agility replaced as US Defence logistics partner

he United States Defence Logistics Agency (DLA) has awarded a multi-billion dollar logistics contract to the Dubai-based company Anham for distribution and support services to American forces in the Middle East.

Th e contract, which has a base period of 18 months, was previously handled by the region’s largest provider of logistics services, Agility. However, the company is facing a high-profi le court case with accusations of overcharging the US government on three major contracts for logistics services in Iraq, Kuwait and Jordan.

“It is with great gratitude and a compelling sense of duty that our team welcomes the award to expand our support for those serving in the Middle East,” stated a press release from Anham. “We have a long track record of meeting and exceeding the contract requirements and expectations of our clients, the United States Government, and all stakeholders. Our capable team will continue to build upon its legacy of delivering the best services at the best value to American taxpayers and the United States government.”

Agility has denied the allegations of fraud and has expressed its commitment to serve the US Defence Logistics Agency for a transition period, with its contract expiring in December 2010. It has also dismissed a report in the Al-Qabas newspaper that Tarek Sultan is expected to resign from his position as the chairman and managing director of Agility.

“We would like to thank our shareholders, our customers, and our employees for their support and commitment throughout this diffi cult year,” commented Sultan. “Going into 2010, we will continue to leverage our global network and strong presence in dynamic emerging markets, our niche specialties, and our culture of personal service and going above and beyond. We see

TLatest concerns for logistics company as multi-billion dollar contract is awarded to Dubai-based rival

NEWS UPDATE

• 29th January 2010: Agility was expected in court to reach a settlement with the US government over alleged overcharging on US$8.5 billion worth of contracts. However, the session was postponed.

• 30th March 2010: Agility asked the Kuwait Stock Exchange to suspend trading in its shares and delay the release of its full-year 2009 fi nancial results until Tuesday 6th April 2010.

• 8th April 2010: Agility dismissed a report in the Al-Qabas newspaper that its chairman Tarek Sultan was expected to resign from the fi rm.

• 9th April 2010: A preliminary agreement is reached in Agility’s US court case, according to a report in Kuwait’s Al-Jarida newspaper.

• 13th April 2010: Agility suffered another blow with claims that US authorities had slapped the logistics fi rm with a fresh indictment.

• 18th April 2010: The US Defence Logistics Agency (DLA) awarded a multi-billion dollar contract to Anham for the shipping of food to troops in the Middle East, which was previously handled by Agility.

TIME LINE OF RECENT EVENTS FOR AGILITY

the challenges facing the company as a call to action, to build an even stronger, more fl exible, effi cient, and competitive Agility.”

Th e company posted its fi nancial results for 2009 last month, with an 11% increase in net profi ts compares to the previous year, while revenues slipped by seven percent during the same period. However, revenues in the last quarter picked up by one percent, which Agility said was evidence of a strong fi nish to the year.

“It has been a tough year, for the global economy, for the logistics industry, and for Agility,” stated Sultan. “Yet we have performed well in these challenging times by focusing on reducing costs, including a reduction in our headcount, whilst driving organic growth through a number of important new contracts.”


NEWS UPDATE

pleased to have been entrusted with these services and we are confi dent about providing the best services to our ability,” stated Kirit Mehta, marketing director of RSA Logistics.

Pods Bahrain has been signed as the latest anchor tenant for the Majaal warehousing development at Bahrain Investment Wharf. The company, which manufactures pre-fabricated bathroom and kitchen units, has leased 4000m2 of space at the development for its global headquarters. “I would like to welcome Pods Bahrain to Majaal’s integrated business community,” said Amin Al Arrayed, board member of Majaal. “This partnership endorses our unique offerings, which exceed market standards in secure, cost effective warehousing facilities for tenants.”

DHL has expanded its customer base in Qatar with a new contract to provide the British Embassy in Doha with express courier services.“We are honoured to have been appointed as the exclusive express and logistics partner of the British Embassy in Doha, entrusted with the responsibility for meeting its requirements,” commented Daniel Kearvell, general manager of DHL Express Qatar. “This prestigious partnership has endorsed our market leadership and highly professional operation in Qatar.”

Momentum Logistics introduced an Abu Dhabi offi ce into its United Arab Emirates network last month, located in close proximity to the Police Training College. The facility is part of a region-wide expansion for the company, with additional offi ces being planned throughout the Middle East this year. “Since our launch in 2008, Momentum Logistics has been focused on expanding our services to become the global provider of choice for supply chain management services,” said Matthew Derrick, the company’s general manager.

CEVA Logistics has revealed plans to build another state-of-

the-art offi ce and warehouse facility in Jebel Ali Free Zone to support its operational growth in the Middle East.

The forthcoming building, which will trigger an expansion of the company’s contract logistics capabilities, is the latest component in CEVA’s regional plan to have around 100,000m2 of warehousing space by the end of the year.

“The new facility is a solid demonstration of our continued commitment to the United Arab Emirates. It will also deliver infrastructure that is tailored to meet the stringent quality and environmental standards expected,” stated Shamsudeen Ahmed, CEVA’s regional vice president in the Middle East.

“This offi ce and warehouse has been developed to host a range of business sectors, with key details included in the design that cater for key growth sectors such as retail, consumer,

EZW’s Salma Hareb with Shamsudeen Ahmed and team members of CEVA Logistics

Kirit Mehta from RSA Logistics is confi dent about handling Diversey’s supply chain

RSA Logistics has been awarded a three-year contract to

provide supply chain services to Diversey in the Middle East.

The family-owned company, which was the fi rst tenant at Dubai Logistics City to commence operations, will handle Diversey’s warehousing and local distribution, including the transfer of goods from supplier to distribution centre, degregation and storage of products, and picking, packing and loading. In addition, it will manage the customer’s product distribution in the UAE.

“With the way the markets were going, to secure a contract of this magnitude is defi nitely a step in the right direction. We are

CEVA to expand Middle East footprint

Diversey signs contract with RSA Logistics

3PL

Logistics company announces the construction of another Dubai warehouse and offi ce in Jebel Ali Free Zone

technology, healthcare, aviation, automotive, industrial, oil and energy,” he added.

The purpose-built facility, scheduled for completion by the end of 2010, will incorporate the latest technology features and will be LEED (Leadership in Energy and Environmental Design) certifi ed.

“The marks another signifi cant and concrete milestone in CEVA’s regional growth and expansion strategy,” explained

Gianfranco Sgro, president of CEVA in Southern Europe, the Middle East and Africa.

“We have improved our network of local warehouses, taking our total space in Jafza zone to over 168,000m2 and our built-up area to 95,800m2. This new tailor-made warehouse facility will enable us to further optimise our logistics solutions and make CEVA a truly integrated supply chain player in the region,” he continued.

3PL

NEWS IN BRIEF

“With our expertise in logistics, supported by top-of-the-range WMS solutions and material handling equipment, we believe we are the right choice for this contract,” he added.


The Chartered Institute of Logistics and Transport International is a uniquely established global professional body. CILT is the lead-ing professional body associated with logistics and transport. With over 33,000 members in over 30 countries worldwide, CILT holds unparalled professional international recognition. It is an organi-sation that offers signifi cant benefi ts to all its members, as well as a complete suite of educational courses internationally. Estab-lished in 1919 and receiving its Royal Charter in 1926, the Institute has an exciting history behind it, but it is always adapting to stay consistent with current logistics and transport issues. The Institute’s Patron is Queen Elizabeth II.

CILT (UAE) is the Regional Offi ce for the UAE & GCC Region and an Approved Centre of CILT International. We take pride in bring-ing the internationally recognized professional qualifi cations in Lo-gistics and Transport and facilitate them at your doorsteps.

PO Box 28444, Emirates Aviation College, 1st Floor, Al Garhoud, Dubai, UAETel: +971 4 2187804 / 5 / 6 - Fax No:+971 4 2832906

E: [email protected] / [email protected] W: www.ciltuae.org / www.cilt-international.com

INTERNATIONAL CERTIFICATE IN LOGISTICS AND TRANSPORT

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Dnata opens carbon neutral terminalThe Department of Economic Develop-ment (DED) has led

a ground-breaking initiative to transform the Dnata FreightGate-5 cargo termi-nal into the Middle East’s fi rst carbon neutral warehouse.

Approximately US$165,000 was invested to upgrade the cargo facility, which measures around 12,000m2, with the upgrade efforts being managed by DHL’s Energy Performance and Management division.

“The carbon reduction project at FreightGate-5 demonstrates the signifi cant improvements in energy usage that can be achieved within the logistics industry,” stated His Excellency Sami Al Qamzi, director general of the DED.

“Improving energy effi ciency will secure Dubai’s position as the world’s logistics hub of

WAERHOUSE

choice. In addition to making an environment contribution, this project – if replicated across the logistics sector – will bring about large cost savings, which can eventually be passed on to the supply chain, thus boosting operational effi ciency.”

The upgrading of Dnata’s centre involved the installation

of energy monitoring equipment and solar powered lights, in addition to the operational training of staff.

Depending on the level of activity in the coming year, the DED has predicted energy savings of between 26-40% with a return-on-investment of around two to four years.

Al Hassani Group has completed its implementation of the Aware warehouse management system in the Middle East. The software, which is produced by Exactus Systems, has been deployed in the client’s Al Quoz distribution centre and will also be implemented in a forthcoming warehouse at Dubai Investments Park. “Our philosophy is to develop long-term, high-value relationships with customers,” saidMohideen Shaikh, Exactus regionalsales manager. “We are pleased that Al Hassani Group has reported productivity gains from our WMS and look forward to bringing more value to their future operations.”

NEWS IN BRIEF

NEWS UDPATE

Offi cials from Dubai DED, Dnata and DHL Neutral Services at the warehouse launch

MAY 2010 | www.arabiansupplychain.com

NEWS UPDATE

10

It stopped in Dubai for around two weeks to undergo routine technical maintenance and an operational team shuffl e before taking off on its next goodwill mission to the city of Dalian in Northern China.

“FedEx is proud to be a global sponsor of ORBIS and the Delivering Sight Worldwide initiative to increase awareness about avoidable blindness,”

Arte Compass, the fi ne arts division of Transworld Logistics, handled the recent shipment of more than55 paintings for the ‘Jamm Art & Beyond’ auction in Kuwait. The delicate pieces, which required temperature-controlled storage and specialist handling, arrived from various countries in the US, Europe and Middle East. “This contract was completed to the full satisfaction of our client and we have already signed a few more projects for later this year,” said Warren Jacob, chief executive offi cer of Transworld Logistics.

Geodis Wilson has continued to expand its Middle East operations with the recent opening of a new facility at Dubai Cargo Village. The offi ce will focus on airfreight shipments, while Geodis Wilson’s existing facility will exclusively deal with warehousing operations. “With our pace of growth, we no longer had spare capacity in the old warehouse,” explained Sascha Geiken, Geodis Wilson’s UAE managing director. “As our business is increasing, particularly with the sea-air product, more warehouse space was essential.”

Abu Dhabi University has hailed the success of its inaugural Global Logistics Forum and announced a follow-up event in February 2011. Around 200 people attended the fi rst session, which took place in March, including representatives from Toll Global Forwarding, DP World and the Chartered Institute of Logistics and Transport (CILT).“Once again, we will bring global supply chain leaders to tackle the needs of the local logistics industry,” stated His Excellency Ali Saeed Bin Harmal Al Dhaheri, chairman of Abu Dhabi University.

GAC was recently awarded a contract for the transportation

of four mammoth transformers to the Jaber Al Ahmed “W” substation in Kuwait.

The transformers, which had a weight of 210 tonnes each, were shipped from Japan on behalf of Hyundai Engineering and Construction Company.

They were carefully unloaded from the vessel at Shuweikh port onto heavy-lift trailers and driven throughout the night - the safest time to transport such over-sized cargo – to the Jaber Al Ahmed “W” substation.

Police and other local ministry permission was required, as well as a special escort for the twenty kilometres journey.

“A lot of pre-planning was required by our team to carry out such an operation,” explained Ronald Lichtenecker, managing director of GAC Kuwait.

GAC’s transport fl eet needed ministry permission and special escorts for the delivery

FedEx Express hosted a tour for government offi cials of the ORBIS

Flying Eye Hospital aircraft in Dubai last month.

The aircraft, maintained and supported on the ground by FedEx Express, has an onboard hospital that brings together eye care professionals and aviators to assist patients in developing countries around the world.

GAC delivers transformers in Kuwait

Xxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxx xxxxxxxxxxxxxx xxxx

FedEx provides support to ‘fl ying hospital’

3PL

Logistics company reports the successful completion of contract for Hyundai Engineering and Construction

LOGISTICS

NEWS IN BRIEF

explained Hamdi Osman, senior vice president, FedEx Express Middle East, Indian Subcontinent and Africa

“We are privileged to be able to provide ORBIS with critical aviation support and equally delighted with FedEx pilots, who volunteer their time to fl y the Flying Eye Hospital to medical programme locations worldwide,” he added.

“Despite the transformers’ massive weight and special requirements, our experienced sea freight and project team handled the job smoothly, thanks to our well-honed system. The

jacking operations, for example, have to be carried out very slowly and with military precision. The excellent cooperation of our local transport partners also played an important role,” he added.

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pproximately 150 delegates from across the Middle East attended a recent seminar on supply chain fi nances in Dubai, hosted by the Chartered Institute of Logistics and Transport (CILT).

Th e trade event, which took place at Emirates Aviation College on 15th April 2010, included a host of speakers from companies such as Aramex, Arthur D. Little and Dubai First.

“Th rough this forum, we wanted to give companies a real insight on the potential role that supply chain management plays in reducing their wider business model costs,” explained Alex Borg, regional director of CILT in the Middle East.

A“Th e event focused on reducing these costs and creating value

without resorting to lowering a company’s supplier rates. Various global experts gave delegates their perspectives on a number of innovative concepts, which can be implemented to reduce overall supply chain expenses,” he added.

Guests at the seminar attended from various companies, including Dubai Logistics City, Emirates SkyCargo, Al Tayer Logistics, Agility and Modern Freight Company. “We will evaluate the feedback from this seminar and organise a follow-up event in October 2010,” continued Borg. “It’s important to sustain this momentum and interact with the industry on relevant topics.”

CILT tackles supply chain fi nances in the Middle East

NEWS UPDATE

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The only truck designed to unload 12 trucks of 33 pallets per day!


hrhardt + Partner Solution (EPS) welcomed around 100 guests for the opening ceremony of its regional headquarters at Dubai Logistics City (DLC) last month, with visitors arriving from Saudi Arabia, Oman, Bahrain and the United Arab Emirates.

Th e event included a keynote speech by Khalifa Al Zaffi n, executive chairman of Dubai Aviation City Corporation, who stressed the importance of companies such as EPS establishing their presence at Dubai Logistics City.

“Th e opening of this EPS facility marks a strong endorsement of DLC and its business model in providing a dedicated world-class infrastructure for global logistics providers,” said Al Zaffi n.

“We believe Dubai Logistics City is an unparalleled platform within the Middle East and this has been validated by the growing presence of international logistics and support service providers in the local

Ecampus. In this regard, the opening of this technology centre marks another successful step in the rapid ongoing development of DLC as the region’s premier logistics destination.”

Th e Middle East headquarters has been modelled along the same lines as Ehrhardt + Partner Solution’s own Institute for Applied Warehouse in Germany, allowing the company to share its logistics expertise and technological platforms with regional corporates, including logistics service providers.

“Dubai Logistics City is where the most important logistics markets of the future will be centred,” stated Ramon Th oms, regional manager of EPS. “As a result, we thought it was essential to develop a centre to provide new warehouse solutions that will shape the future of the industry. With this opening, we are now able to implement complex warehouse projects and modernisations on-site in accordance with international quality standards.”

Ehrhardt + Partner opens Dubai Logistics City offi ce

NEWS UPDATE

Paul Floyd (managing director of FAMCO) with Hermann

Ehrhardt (managing director of Ehrhardt + Partner Solution)

Khalifa Al Zaffi n (Dubai Aviation City Corporation) cuts the ribbon with Hermann Ehrhardt (EPS)

of

NEWS UPDATE

Khalifa Al Zaffi n, executive chairman of Dubai Aviation City Corporation, provides the keynote speech

Mohsen Al Awadhi, GM Land of Dubai Logistics City (right) is joined by other guests at the launch event

Dr. Rajiv Aserkar, professor at S.P. Jain Centre of Management

Ramon Thoms, regional manager of EPS

Madhav Rao, head

of IT at EMKE Group


May 2010 | www.arabiansupplychain.com16

EDITOR’S CHOICES

SPOT POLL

The online home of:Still hungry for more news?

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VIDEO REPORTFedEx’s tragic Tokyo plane crash in 2009 The Japanese Transportation Safety Board has released footage of last year’s FedEx plane crash, which destroyed a Boeing aircraft.

PHOTO SPECIAL

Top 8 Shipping Ports in Saudi ArabiaWhich of the Kingdom’s leading seaports recorded the highest volume of cargo in 2009, according to Saudi Ports Authority (SPA)?

MOST TALKED ABOUT LOGISTICS COMPANIES ON ARABIANSUPPLYCHAIN.COM

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FedEx

Ehrhardt + Partner Solutions

Aramex

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WEBSITE STATISTICS

ONLINE HIGHLIGHTS

Th e construction of SSI Schaefer’s forthcoming Middle East headquarters will be completed at the end of 2010, the material handling specialist has confi rmed in a progress report. Th e state-of-the-art facility, which is located in Dubai Logistics City, has been designed to contain the entire range of SSI Schaefer products and services, including its warehouse racking solutions and the latest generation of automation resources.

“Th e development of the Middle East logistics industry has created a number of interesting opportunities for SSI Schaefer and allowed our company to signifi cantly expand its operations in the region, where we have been present since 2002,” stated Geoff Wheatley, managing director of SSI Schaefer in the Middle East and Africa. “As a result, we have been able to increase our resources in terms of buildings and people to further develop our status in the local market. Th e US$3 million that has been invested in this facility is a symbol of SSI Schaefer’s deep commitment and confi dence in the UAE and surrounding markets to weather the current fi nancial storm and emerge both strong and better equipped.”

A total of four companies have started operations at Dubai Logistics City over the past year, including Ehrhardt + Partner Solutions (EPS), RSA Logistics, Kuehne & Nagel and Calipar Integrated Services.

SSI Schaefer prepares for DLC offi ce launch

Which GCC country will attract the most investment for logistics developments in 2010?

32.2%Saudi Arabia

25.8%Bahrain

22.6%UAE

19.4%Qatar

0%Kuwait / Oman

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MIDDLE EAST WAREHOUSE HUBS

With billions of dollars being invested in the Middle East’s growing portfolio of logistics trade zones, which of the region’s developed and under-development projects have been included in the annual Logistics Middle East Top 10 Warehouse Hubs for 2010?

TOP 10 MIDDLE EAST WAREHOUSING HUBS

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 interest from the logistics sector, especially from freight forwarders, importers, exporters and MRO specialists – proving that demand for such developments outside of Dubai is also plentiful. Th e complex is being developed in two phases, with the fi rst phase being scheduled for completion next year, while the competition of phase two will follow in 2015.

ABU DHABI AIRPORT LOGISTICS PARK

With billions of dollars being invested in the Middle East’s

TOP 10 MIDDLE EAST WAREHOUSE HUBS

19


www.arabiansupplychain.com | MAY 2010


Spread over 25 square kilometres, Dubai Logistics City (DLC) has been created to handle the warehousing and transportation requirements of the Middle East for the next 40 to 50 years. Th e multi-billion dollar project, which is located in close proximity to Jebel Ali Port and the forthcoming Al Maktoum International Airport, will allocate 12 million square feet of land to industrial and distribution companies, with each tenant either building their own facilities or renting shared premises. Th e commitments to build dedicated warehouses have already come from a diverse mixture of freight forwarders and logistics providers, with RSA Logistics, Kuehne & Nagel, Ehrhardt + Partner Solutions (EPS) and Calipar Integrated Services being the fi rst to commence operations. In addition, Eagle Industries, Integrated National Logistics, Aramex, and RSA Logistics (phase two) are also coordinating the construction of their facilities.

DUBAI LOGISTICS CITYRas Al Khaimah Free Trade Zone (RAKFTZ) has successfully marketed itself to a growing community of regional and international businesses over the years, with over 7000 companies now based at the industrial complex. Even the global recession has failed to make a dent in 2009’s revenue fi gures, which increased by 11% compared to the same period in 2008 – an achievement that has been credited to a fl exible business model that easily adapts to market changes. First established in 2000, RAKFTZ is

divided into an industrial park, business park, technology park and academy zone, which are spread across the mountainous northern emirate. Th e majority of logistics companies are based in the industrial park, which covers 6 million square metres and off ers direct access to Saqr Port; the fi rst port available when entering the gulf. In addition, the opening of Emirates Highway has become a major selling point, almost halving commuting time between the free zone and Dubai.

RAK FREE TRADE ZONE



Dubai Industrial City has emerged as another successful warehouse hub in the Middle East, carving an enviable niche for itself in the logistics industry. Launched in 2004, the complex 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 supported with infrastructure for industrial training and labour accommodation, in addition to 2.8 million square feet of open storage yards and 3 million square feet of warehouse space. Th e project has proved such a success that a second stage of open storage, which measures 3.5 million square feet, is fast approaching completion and will be marketed to major automotive, equipment and construction companies.

DUBAI INDUSTRIAL CITY


Salalah Free Zone has been designed to provide its tenants with access to the world’s fastest growing markets, including over 1.6 billion consumers in the Middle East, East Africa and the Indian Ocean Rim. During its fi rst phase of development, a combination of warehousing, manufacturing and industrial facilities were opened on 200 hectares of

land, in close proximity to Salalah Port. Th e scope for expansion is considerable and a further 400 hectares will be introduced in the project’s second phase, which is currently under construction and will provide benefi ts such as 100% foreign ownership, no minimum capital investment requirement, and no taxes on profi ts or dividends for 30 years.

SALALAH FREE ZONE

Th e management team at Bahrain Logistics Zone has adopted a full throttle approach for their marketing campaign in 2010, visiting all corners of the world to promote their “boutique” logistics zone, which is located on 100 hectares of land within a few minutes from 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. With this in mind, it seems clear that 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

BAHRAIN LOGISTICS ZONE



Celebrating its 25th anniversary in 2010, Jebel Ali Free Zone has benefi ted from a series of major investments in the past two and a half decades, helping to boost its status as a regional superhub for warehouse operations. Over 6400 companies from 120 countries have established a base in the free zone, including global heavyweights such as Black & Decker, Procter & Gamble, DaimlerChrysler and Xerox. In addition, the past year has witnessed a number of warehouse launches and openings from logistics companies such as AW Rostamani Logistics, Gulf Agency Company (GAC), CEVA Logistics, JBC Express Freight, and Centre Point Logistics (CPL), which are mainly centred on a multi-billion dollar expansion in Jebel Ali’s south zone. To continue its growth momentum, Jebel Ali Free Zone Authority (Jafza) has recently formed a partnership with Dubai Aviation City Corporation (DACC) to establish the ‘Dubai Logistics Corridor’, which is set to become the world’s largest multi-modal logistics platform that links sea, land and air to facilitate the transportation of goods in record time.

JEBEL ALI FREE ZONE


MIDDLE EAST WAREHOUSE HUBSTOP 10 MIDDLE EAST WAREHOUSING HUBS

Bahrain Investment Wharf (BIW) is currently being constructed on a plot of land measuring 1.7 million square metres at the Hidd industrial area, in close proximity to Bahrain International Airport and the new Khalifa Bin Salman port. Th e ambitious development will include a dedicated logistics park with 900,000m2 allocated for supply chain activities, including warehouse storage, packaging and distribution. One of the fi rst companies to establish a base at the project was real estate developer First Bahrain, which opened the fi rst phase of its inaugural $45 million logistics development, Majaal, at Bahrain Investment Wharf earlier this year.

BAHRAIN INVESTMENT WHARF

Dubai Investments Park has outlined plans to construct a 500,000m2 logistics complex to capitalise on the success of existing supply chain operations at the development, with the list of current tenants including the likes of Global Shipping & Logistics, Agility, Logfret Middle East and Heavy Load Freight Services. According to DIP’s management team, a number of factors have contributed to this positive response, including a strategic location between Dubai and Abu Dhabi, which is also in close proximity to

the forthcoming Al Maktoum International Airport. Th e new logistics complex, which was launched earlier this year, will be constructed as the eighth and fi nal phase of Dubai Investment Park’s development at a cost of US$81.5 million. Th is includes the building of a road network, electricity and water network, sewerage system and district cooling facilities. Construction will start this month, with completion of this section, along with all previous phases of development, expected within three years.

DUBAI INVESTMENTS PARK

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, Aqaba Logistics Village is being developed on 500,000m2 of land next to Aqaba Container Terminal over the next ten years at a cost of US$60 million. 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. Agility and Th e Kawar Group have agreed to complete the village on a build, operate and transfer (BOT) basis, with Aqaba Development Corporation taking over ownership after 25 years.

AQABA SPECIAL ECONOMIC ZONE

SPECIAL REPORT: MIDDLE EAST WAREHOUSING HUBS

24 MAY 2010 | www.arabiansupplychain.com24

BAHRAINBRILLIANCEHow the General Organisation of Sea Ports has successfully marketed its Bahrain Logistics Zone as the Middle East’s most promising development for warehousing operations.



lthough the importance of marketing has often been downplayed in the Middle East logistics industry, the General Organisation of Sea Ports (GOP) has provided a text book example of how a well-structured promotional campaign can transform an unknown

entity into a lucrative and highly-regarded brand.Launched in 13th May 2008, Bahrain Logistics Zone has been

marketed by the GOP as a “boutique” warehousing development in close proximity to the recently-opened Khalifa bin Salman Port. For a project that would essentially compete with much larger-scale developments in the Middle East, such as Dubai Logistics City in the UAE and Prince AbdulAziz Bin Mousaed Economic City in Saudi Arabia, the sheer scale of its promotional campaign was a testimony to GOP’s belief that something special was being created. It was not limited to potential investors in the Middle East either, but spread to all corners of the world, including India, China, Japan, Russia, Germany and the United Kingdom.

Its little surprise, therefore, that various industry heavyweights have already expressed their interest in the US$280 million project, with Danzas and CEVA Logistics amongst the fi rst 20 companies to start the construction of their ambient and temperature-controlled warehouses at the site, with operations scheduled to commence in 2011. Non-logistics companies have also jumped on the bandwagon, including the likes of Awal Gulf Manufacturing, Landmark Group and Marina Gulf Trading, just to name a few.

“We launched the logistics zone a couple of years ago with a sophisticated marketing campaign that focused on advertising, road shows, seminars and other activities. Th e unprecedented response from local and international companies has strongly indicated that we’re heading in the right direction,” states Hamad Fakhro, assistant director general of Bahrain Logistics Zone. “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% from the current one square kilometre, which should help to bridge the gap between demand and supply for warehouse facilities.”

Despite the expansion, Fakhro and his team have implemented a stringent application process to ensure Bahrain Logistics Zone hosts a diverse community of tenants. “We are dedicated to ensuring our tenants are the right fi t for us,” he explains. “Th e right kinds of tenants are those who will bring the most value to Bahrain. Th is means on one level the creation of jobs and increase in foreign direct investment, and also their ability to transfer knowledge to the local market and their involvement in activities which further Bahrain’s economic and cultural goals. A number of applications from potential tenants are currently being evaluated and we expect to make a series of announcements about this in the coming months.”

While business friendly incentives have played an important role in attracting these tenants to Bahrain Logistics Zone, the primary focus of its marketing campaign has been location, location, location. Th e multi-modal development is situated adjacent to Khalifa bin Salman Port, with Bahrain International Airport only 13km away and the Eastern Province of Saudi Arabia a little over 40km in distance, off ering excellent links to the Kingdom, as well as Qatar and the North Gulf markets.

With this in mind, it seems clear the project will bring massive benefi ts to the Kingdom’s economy. Aside from the $600 million that will be generated from foreign direct investment, the project is also expected to generate 2400 medium to high-wage jobs. Moreover, it is believed that many other companies will be drawn to the Kingdom as a result of the improved logistics infrastructure and the attractive

25

A



• Bahrain Logistics Zone (BLZ) is a multi-modal logistics hub focusing on re-export and value-added logistics activities.

• The project is designed to be a premier logistics hub in the Middle East, capitalising on the Kingdom’s proximity to Saudi Arabia, Qatar, and the North Gulf markets.

• Bahrain Logistics Zone is strategically located adjacent to Khalifa Bin Salman Port and will offer state-of-the-art warehouses and land for lease.

• It is 13km from the Bahrain International Airport and only 40km from the Eastern Province in Saudi Arabia, and also hosts an offi ce for onsite customs procedures.

• Land and warehousing lease is available at the Bahrain Logistics Zone with various lease options.

• Bahrain Logistics Zone has already gained the attention of international logistics players and has signed lease contracts with major names in the industry, including CEVA Logistics and Danzas.

• Plans to increase the size of the BLZ site by 150% from the current one square kilometre are currently underway.

• Bahrain is currently ranked second within the Middle East in the World Bank’s Logistics Performance Index

• Bahrain Logistics Zone assists companies in various requirements related to setting up their business through coordination and facilitation with related government agencies.

• Dedicated customer service offi cers are assigned to BLZ tenants to cater to their specifi c needs.

Fact File: Bahrain Logistics Zone

business prospects for the future. Th e initial success of Khalifa bin Salman Port has supported these ambitious predictions. Although cargo volumes at the shipping hub were modest when operations commenced in April 2009 - the peak of the global recession - business has steadily increased over the months and the port handled a record amount of shipments in January this year, with double-digital growth compared to previous months. Even vessel movements and productivity have outperformed a number of regional counterparts in the Middle East.

“Th e Arabian Gulf ’s economy is undoubtedly growing at a signifi cant rate. Businesses are expanding and so are their needs for logistics and freight forwarding activities. Th us, local organisations operating in the logistics sector are facing a signifi cant demand for warehousing needs,” continues Fakhro. “Bahrain is no exception to this accelerated growth. With the support of its forward-thinking government and the private sector, we are certainly ready to face future challenges.”

Of course, other warehousing developments in countries such as the United Arab Emirates, Saudi Arabia and Oman would appear a major challenge in terms of selling Bahrain as a world-class base for supply chain operations. However, for Bahrain Logistics Zone, a certain level of competition has also emerged closer to home, with Bahrain Investment Wharf and Bahrain Investment Gateway also being launched as warehousing complexes. Fakhro appears remarkably unfazed at the mention of these developments, believing that each project will compliment the other.

“At face value, some people may believe that competition exists between Bahrain Logistics Zone, Bahrain Investment Wharf and Bahrain Investment Gateway. However, we are neighbours that compliment each other. Th e wharf has a labour camp, for example, which could be helpful for our tenants. In the same fashion, they also have an industrial park, which could benefi t from the logistics services in our zone. At the end of the day, we have a

Hamad Fakhro, assistant director general of Bahrain Logistics Zone, recently signed a contract with Shamsudeen Ahmed, vice president of CEVA Logistics in the Middle East

common goal to highlight the huge potential of our country, especially with the location, low cost of operations and the availability of a strong local workforce. Th is is something we can achieve together in the coming years.”

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28 MAY 2010 | www.arabiansupplychain.com24

POWER PLAYERCelebrating the 25th anniversary of operations at Jebel Ali Free Zone with Salma Hareb, chief executive offi cer of Economic Zones World (EZW).



elebrating its 25th anniversary of operations in 2010, Jebel Ali Free Zone has established itself as a global superhub for logistics operations and perhaps the most valued asset in the Middle East’s portfolio of warehousing hubs. Even during the peak of a global

recession, the fl agship development of Economic Zones World (EZW) welcomed an impressive 484 new companies in 2009, bringing the total number of tenants with operations at the free zone to 6402.

“It has been an eventful year for Jafza and the result of our achievements is refl ected with the number of new entrants into the community and the level of growth achieved by our existing clients,” states Salma Hareb, chief executive offi cer of EZW. “We have a lot more expansion plans for the future too, which will drive us to the goal of becoming the number one free zone in the world.”

Looking at the start of this 25 year journey, Jafza was created around the Jebel Ali port in Dubai to help boost the port’s business. And within a few years, the free zone had transformed 25 acres of desert into a world-class business environment, initially encompassing 70,000m2 of warehousing and 850,000m2 of covered areas. “After creating the port during the late 1970s, it became apparent the operations needed an industrial area to boost business,” explains Hareb. “As a result, the free zone was created in 1985. It successfully increased business at the port, but the port also boosted the free zone operations. It’s defi nitely a win-win situation.”

Th rough the years, Jafza has benefi ted from major investments in its infrastructure and the free zone’s growth has exceeded all expectations. Th e organisation off ers simple administration procedures, zero duties on import and export goods within the zone, and excellent support services. “It has developed in a fast way,” says Hareb. “Over the past ten years, Jafza has seen uninterrupted year-on-year growth in the number of companies as well as the number of their employees. In 2001, a total number of 56,663 people were employed by the 1537 companies then operating from Jafza. Th e number has risen to 139,000 people in 2009.”

Jafza is constantly revamping its business model to remain innovative. Th e logistics industry itself has changed considerably over the past ten years and Jafza has successfully kept pace with alterations in customer demands. “We are doing something right,”

23

C

paHooen

inoa

Jafza continued its successful track record in 2009 and welcomed an impressive 484 new companies, bringing the total number of tenants at the free zone to nearly 6500

Hareb says with a smile. “Th ere are many free zones around the world, and several of them have failed. Sometimes it becomes diffi cult to pinpoint the exact reasons for Jafza’s success. However, our comprehensive business model has played a major part in attracting companies. Th e more we develop the business model, the better package it becomes for investors.”

Th e female chief executive joined the organisation in 1997 as a planning offi cer, later promoted to chief planning offi cer. However, it was Hareb’s promotion to CEO that grabbed headlines around the Middle East, and indeed the world. Despite being the fi rst female CEO of a free zone in the region, and possibly the globe, Hareb remains unfazed about working in a male-dominated industry. And she admits her pioneering management technique is probably diff erent compared to her male counterparts. “I have learnt there are diff erent sensitivities between a woman handling this job and a man handling this job. I believe men are very much attached to their work, while

women are more attached to family and the home,” she states. “I’m competing with people who would die for their jobs and eventually it starts getting hard. But, once you acknowledge the situation, it is possible to fi nd a balance between personal and professional life.”

While touring the Jafza building and meeting various employees from the organisation, it becomes apparent Hareb is highly regarded by her personnel. And she admits to sharing a close bond with the senior management team. “I have a great relationship with

my staff , I feel quite loved,” she says. “A big group of the senior management are friends of mine because we have worked together so long. Th is creates a positive environment which makes me feel very comfortable indeed.”

Th e massive development witnessed by Jafza shows no signs of slowing down. In particular, its south zone is being expanded to meet high levels of demand. Th e huge project aims to develop specifi c industry sectors through various clusters, with an estimated cost of more than AED 2 billion (US$544 million).

Despite the continued growth, the economic downturn — which saw six percent declines in Jebel Ali port’s volumes during the fi rst nine months of the year — has slowed down operations for free zone companies. Not that Hareb is too downcast. “Nowadays I think we are a bit relieved that we can cope with the demand,” she admits.

“The free zone increased business at the port, but the port also boosted

the free zone operations”



• Jafza attracted 484 new companies last year, taking the total number of companies operating at the free zone to 6402 in 2009.

• In 2001, a total of 56,663 people were employed by the 1537 companies then operating from Jafza. The number has continued to increase, reaching 139,000 people in 2009.

• Jafza ISO accreditation for its quality management system was recently upgraded to ISO 9001:2008.

• 91 LIU/warehouses units covering an area of 52,409m2 were leased out in 2009, a 15% increase compared to 2008.

• The LIU 15, which is the fi rst of its kind facility in the free zone to offer a 10-metre height allowance for maximum storage, has been completely leased out, which Jebel Ali Free Zone Authority claims is because of the facility’s user friendliness.

2009 HIGHLIGHTS FOR JEBEL ALI FREE ZONE

“We were really breathless trying to cope with demand but now the demand can be kept by normal supply.”

Hareb has made a number of key changes at Jafza to better cope amid the downturn. Th e timeframes in which new companies must start building their own facilities onsite have been extended slightly, while others have managed to renegotiate contracts that were signed at peak 2008-prices. “We tried to go easy on the customers. We have rules [such as] you have to build within six months so we gave them longer periods in which to build. Th at helped to keep the facility without putting money into it. Some customers were off ered use of the land as temporary storage so rather than building their own facility, they used it to store their goods for a while until they are asked to build a facility,” explains Hareb. “We also negotiated some contracts that were off ered at the peak of the market. Not for existing clients but for new clients who were off ered higher rates. [Th is was done] on a case by case basis… We are not a real estate company but we try to make it easier for customers to come and establish.”

In November last year, Dubai World, Jafza’s parent company, announced it would ask its creditors to accept a delay in all repayments until the end of May 2010. Th e news sent shock waves across the world; markets plummeted from London to New York and Dubai came under a huge amount of criticism in the international press. Th rough their association to Dubai World, both Jafza and DP World had their credit ratings downgraded by global agencies, Moody’s and Standard & Poor’s, despite statements that the two were exempt from the restructuring.

Hareb says both DP World and EZW have enough cash to meet their fi nance and investment needs for the foreseeable future. “Th ere is no concern whatsoever for the operations of DP World and EZW. Th e payments are being paid and the cash fl ows of the companies can take them forward to a few years with the existing fi nancial plan.”

She adds that two days after Dubai World’s announcement, Jafza made a coupon payment on its $2.04bn Islamic bond (sukuk). According to Dow Jones analyst calculations the sukuk’s payment is estimated to be between $34-36.7 million.

Asked if she is concerned about the eff ect the lower credit ratings will have on business in the future, Hareb answers: “Our sukuk will not be aff ected because the terms are not built on ratings… We paid

our coupon on time, all the time and we expect to [continue to] pay it. Dubai World will also work it out under the restructuring. Don’t forget this company has contributed to building a city as well so that’s quite important and people should not forget about that.”

Although she does believe that this has been forgotten, Hareb also says she can understand why Dubai came under such attack. “You can understand with the celebrity that was focused on [it] all

of the time. People want to pinpoint mistakes and try and fi nd something [but] Dubai is very successful and what Dubai has done no one else can make in the [same] short time.”

Despite last year’s slowdown, Jafza’s continued growth is likely to see it hit target this year. “In a downturn we are still growing… For example, we put a lot of eff ort in to attract American companies unlike European and Far Eastern companies who come easily [and] this year we had more American

companies than we expected,” says Hareb.She adds her own theory to the continued growth. “Th ere were

many investors in Dubai that just wanted to invest [but] because the real estate went through a downturn… they thought that this was a good area to invest while they wanted for the real estate to hit bottom,” she concludes.

“We were really breathless trying to cope with demand,

but now the demand can be kept by normal supply”

As part of the continued development of Jebel Ali Free Zone, the authorities have provided the green light for various new showrooms and warehouses for tenants in the south zone

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“When the land was bought, it was just a large patch of desert, and out of nothing we have developed an area that is today one of the most sought-after industrial and commercial destinations in the UAE,” explains Omar Al Mesmar, general manager of DIP.

Earlier this year, the company announced the launch of its fi nal phase

n 1997, way before the Middle East’s construction boom really took off ; the management team at Dubai Investments decided to lay

foundations on 24 million square metres of desert and start building a mixed-use city from scratch, before convincing local, regional and international tenants to invest their money into the project.

Although many described the concept as extravagant at the time, it seems the

Idevelopment of integrated ‘hubs’ has since become a common pursuit among ambitious developers and contractors over the past decade, leading to a variety of more recent projects, such as King Abdullah Economic City and Doha’s Lusail City. And despite some initial concerns, Dubai Investments Park (DIP) has attracted hundreds of occupants to its residential districts, huge industrial areas and bourgeoning commercial zones, providing that the concept was a long-term winner.

Dubai Investments Park (DIP) general manager Omar Al Mesmar explains why the project’s eighth and fi nal phase of development will be a 500,000m2 logistics complex, valued at Dhs300million.



of development, which is set to become a central hub for logistics services spread across 500,000m2. Construction will commence this month, with completion of this section, along with the entire development, expected in 36 months.

“Th e earth works have already been completed and we are just waiting to get approval from Dubai Municipality, DEWA and the RTA before we can begin construction,” says Al Mesmar.

“It will be constructed in two phases and each phase will take 18 months to complete. Th e number of units that will be built depends on the demand

we get from companies.”Of course, three years is a short time in the construction world,

and with the completion deadline fast approaching,

are all areas of the vast mega-project running

on time? To answer this question, it’s

important to takea look at the

wider picture. Th e fi rst

t h r e e phases of

D u b a i

“The team carries out activities that were previously managed by our clients in-house”

“The team carriesout activities that were previously

naged by our lients in-house”

COMPLETEPhase 1: Greens Community residential villas, industrial centres and warehousesPhase 2: labour accommodation, industrial centres and warehousesPhase 3: labour accommodation, industrial centres and warehouses

75% COMPLETEPhase 4: industrial centres, warehouses, offi ces, showrooms, headquarters, schools, residential apartments, hotels and stuff accommodations

50% COMPLETEPhase 5: labour accommodation, industrial centres and warehousesPhase 6: labour accommodation, industrial centres and warehousesPhase 7: labour accommodation, industrial centres and warehouses

STILL TO COMMENCEPhase 8: warehouse facilities

DIP PROJECT ROUND-UP

Omar Al Mesmar, general

manager of Dubai Investments Park

Companies such as Global Shipping and Logistics (GSL) already have warehouses at Dubai Investments Park

Investments Park have already been delivered, consisting of warehouses, labour accommodation, industrial unitsand residential areas. Phase four, whichincludes warehouses, offi ces, showrooms,schools, residential apartments, hotels and staff accommodation, is currently

75% complete. Th e fi fth, sixth and seventh

phases are now 50% complete and consist of industrial units. In fact, the industrial zone forms a central feature in DIP’s masterplan, with facilities for manufacturing, assembling and distribution usage. Dubai Investments has already leased more than

1.57 million square metres of this business-related area to tenants from sectors in property development, heavy duty steel fabrication, plastic and cold storage.

“Infrastructure in phase seven will be completed by the end of this month and we will begin constructing infrastructure for phase eight as soon as we get the building permit,” he says. “One hundred and four kilometres of roads have now been delivered in total.”

Phase eight will also benefi t from a water and electricity network once complete, in addition to a sewage system and district cooling facilities.

“Out of nothing we have developed one of the UAE’s

most sought-after industrial and commercial destinations”

MAY 2010 | www.arabiansupplychain.com


34

Th e logistics park that is being developed in this fi nal phase has been designed to capitalise on the success of various warehouse operations that are already based at Dubai Investments Park. Leading companies such as Agility, Global Shipping and Logistics (GSL), Logfret Logistics Middle East and Heavy Load Freight Services have all reported success with their facilities at the industrial area and Al Mesmar is confi dent that others will follow suit in the near future.

“Phase 8 will be a signifi cant addition to the investment landscape of Dubai, especially since this phase focuses on logistics services, a sector that has witnessed unprecedented growth in the last decade,” he says.

So, with such a large amount of construction going on, how can DIP sustain itself? According to its general manager, the park is an “eco-conscious” development and allows only certain types of industries to operate within the premises. Tenants must observe

a number of regulations in relation to air and dust emissions, trade and hazardous waste, noise control, import and storage of dangerous goods and work safety.

“Recycling bins are distributed around DIP and tenants must reserve 10% of their plots for landscaping,” states Al Mesmar with a sense of purpose.

Dubai Investments also claims that the park is the fi rst private sector development in the emirate to off er tenants water for irrigation and fi re-fi ghting. Such thinking has obviously been successful in attracting the attention of local and international

businesses. To date, $17.69 billion has been invested into DIP and while the huge project was initially built on an empty patch of land surrounded by desert, Dubai Investments Park has slowly but surely come to life - a situation that will only continue to blossom as mega transportation developments

in the local vicinity, including the new Al Maktoum International Airport are set to commence operations.

DIP’s fi nal phase of development, which is being constructed at a cost of AED300 million, has been designed as a hub for logistics operations and will measure 500,000m2

“Phase 8 will be a signifi cant addition

to Dubai’s investment landscape, especially

since it focuses on logistics services”

1997 - Dubai Investments Park launched1998 - Masterplan completed and phase 1 infrastructure started2000 - Phase 1 construction completed2001 - Construction on Green Community begins2002 - Phase 1 completely leased out2003 - Inauguration of phase 2 by Sheikh Hamdan Bin Rashid Al Maktoum2004 - Phase 3 and 4 construction started2005 - Phase 3 and 4 fully completed 2005 - Phase 5 started 2006 - 810 tenants 2006 - Launch of Ritaj, Palisades and Dubai Lagoon projects 2007 - 950 tenants and 20 hectares developed2008 - 1000 tenants 2008 - 60% of project developed and open to subleasing 2009 - Phase 6 completed 2010 - 95% of phase 7 completed2010 - Construction of phase 8 begins

DIP PROJECT TIMELINE

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UPDATE: SUPPLY CHAIN AND TRANSPORT AWARDS (SCATA) 2010

players that have gone above and beyond in

terms of their industry contribution.”

SCATA 2010 will include 16 categories in

total, covering the logistics, sea freight and air

cargo sectors in the Middle East. Th ese include

the Express Logistics Provider of the Year and

3PL Service Provider of the Year awards, which

honour companies that have consistently

delivered world-class services and facilities

across the region over the past year. In addition,

the FMCG Supply Chain of the Year category

will be awarded to a company that has

raised standards in the logistics industry

with their regional supply chain operations.

“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 is a perfect opportunity to

remember those companies and individuals

that continue to achieve excellence on a daily

eading players from the

Middle East logistics industry

are set to compete for trade

honours at the fourth annual

Supply Chain and Transport

Awards (SCATA) in Dubai. Th e prestigious

ceremony, which is organised by ITP Business,

publisher of Logistics Middle East and

ArabianSupplyChain.com, will be hosted on

Wednesday 2nd June 2010.

“Supported by continued investment in the

Middle East’s transportation infrastructure,

the region is producing some of the most

impressive warehousing and transportation

companies in the world,” commented Walid

Akawi, CEO of ITP Business Publishing.

“Against this exciting backdrop, the Supply

Chain and Transport Awards make a welcome

return in 2010 to recognise the individuals and

companies that stand out from this exalted

crowd. Th e nominees will once again include

a combination of regional and international

basis,” commented Issa Baluch, founder of

Swift Freight International , who returns to the

judging panel for a fourth consecutive year.

Also coming back to the awards in 2010 are

Captain Mansoor Ghafoor (CEO of STALCO

Group and president of National Association

of Freight and Logistics), Salma Hareb (CEO

of Economic Zones World), Ali Al Jallaf (vice

president of Dubai Airports cargo unit), 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 at ZAFCO).

Th e panel also welcomes the addition of

Alex Borg, regional director of the Chartered

Institute of Logistics and Transport (CILT).

To receive further information, book your

tickets, access details on the fi nalists or view

photos from previous years, please log onto:

www.arabiansupplychain.com/scata

UPDATE:

LWith a record number of nominations for this year’s Supply Chain and Transport Awards (SCATA), the fi nalists have fi nally been revealed for the the region’s ultimate celebration of logistics achievements.

SUPPLY CHAIN AND TRANSPORT AWARDS 2010


37


www.arabiansupplychain.com | MAY 2010

SCATA JUDGE PROFILES

ISSA BALUCHIssa Baluch founded Swift Freight International in 1989, which now has a network of offi ces spanning the Middle East, Far East, India and Africa, employing over 500 people around the world. With a Master’s degree in Business from the University of Hull (UK), Issa Baluch served as president of the National Association of Freight and Logistics (NAFL) from 1993 to 2000, president of the Sea-Air Operator’s Association (UAE) from 1992 to 1994, and president of FIATA (International Federation of Freight Forwarders’ Associations) from 2003 to 2005. He is also the author of Transport Logistics: Past, Present and Predictions.

CAPTAIN MANSOOR GHAFOOR A qualifi ed Master Mariner, Captain Mansoor Ghafoor is CEO of STALCO Group, president of the National Association of Freight Logistics (NAFL), vice president of the International Federation of Freight Forwarders Association (FIATA) and chairman of RAME (Region Middle East and Africa) within FIATA.

SALMA HAREBSalma Hareb is CEO of Economic Zones World (EZW), a global developer of economic zones, technology, logistics and industrial parks under the Dubai World Group. As part of this role, she heads each of EZW’s companies, including Jebel Ali Free Zone Authority (Jafza), one of the world’s largest free zone entities. Salma recently topped Forbes Arabia’s list of the 50 most powerful Arab businesswomen, while MEED magazine also named her one of the region’s 12 most infl uential business women.

ALI AL JALLAFAs vice-president of Dubai Airports Cargo Unit, Ali Al Jallaf is responsible for the region’s largest airfreight hub, Dubai Cargo Village (DCV). In addition, he has been appointed as executive board member of both The International Air Cargo Association (TIACA) and the National Association of Freight and Logistics (NAFL).

DR CEDWYN FERNANDES Dr Cedwyn Fernandes is the MBA programme coordinator at Middlesex University Dubai and worked in the airline industry for over a decade prior to joining academia, giving him a unique blend of academic and senior corporate expertise. He is also a committee member of the Supply Chain and Logistics Group (SCLG).

DR KANAK MADRECHA Industry veteran Dr Kanak Madrecha is currently the practice head of DP World’s Business Excellence Centre and also serves as a founder board member of the Supply Chain and Logistics Group (SCLG) and president of the Council of Supply Chain Management Professionals (CSCMP) - Dubai Round Table.

ALEX BORGAlex Borg is regional director of the Chartered Institute of Logistics and Transport (CILT) and has been instrumental in the trade association’s recent growth across the Middle East. He is also a member of the Chartered Institute of Purchasing and Supply (UK) and managing partner of SSM Group.

SEBASTIAN THOMASAs head of supply chain at ZAFCO, Sebastian Thomas is entrusted with managing the Dubai-based company’s supply chain at a strategic level. With 20 years of experience in the fi eld, his achievements were highlighted when he won the Logistics Manager of the Year award at the inaugural SCATA ceremony in 2007.



38

EXPRESS LOGISTICS PROVIDER OF THE YEAR• Aramex• DHL• FedEx• TNT Express• UPS

3PL SERVICE PROVIDER OF THE YEAR• Al-Futtaim Logistics• Aramex• CEVA Logistics• Danzas• Gulf Agency Company (GAC)

FMCG SUPPLY CHAIN OF THE YEAR• Al Hassani Group• Arabian Trading Supplies• NAPCO Group• Saudi Industrial Projects Company (SIPCO)• Tamer Group

LOGISTICS HUB OF THE YEAR• Aqaba Special Economic Zone• Dubai Industrial City• Jebel Ali Free Zone• Kuwait Free Trade Zone• Ras Al Khaimah Free Trade Zone

LOGISTICS AWARDS

CARGO OPERATOR OF THE YEAR (COMMERCIAL AIRLINE)• Emirates SkyCargo• Etihad Crystal Cargo• Qatar Airways Cargo• Royal Jordanian Cargo• Saudi Arabian Airlines Cargo

CARGO OPERATOR OF THE YEAR (CARGO AIRLINE / CHARTER)• Cargolux• Maximus Air Cargo• Midex Airlines• National Air Cargo• Rus Aviation

AIR CARGO HUB OF THE YEAR • Abu Dhabi International Airport• Bahrain International Airport• Dubai International Airport• Kuwait International Airport• Sharjah International Airport

AIR CARGO AWARDS

SHIPPING COMPANY OF THE YEAR• APL• Maersk Line• MISC Berhad• National Shipping Company of Saudi Arabia• United Arab Shipping Company

SHIPPING AGENT OF THE YEAR• Gulf Agency Company (GAC)• Inchscape Shipping Services (ISS)• Maersk Kanoo• Rais Hassan Saadi (RHS)• STALCO

SHIPPING PORT OF THE YEAR• Khalifa Bin Salman Port, Bahrain • Jebel Ali Port, Dubai• Khorfakkan Container Terminal, Sharjah• Port of Sohar, Oman• Fahad Industrial Port, Saudi Arabia

SHIPPING AWARDS

SCATA 2010 FINALISTS

TECHNOLOGY SOLUTIONS PROVIDER OF THE YEAR• Datalogic• Ehrhardt + Partner Solutions (EPS)• Exactus• Log Cubes• Supply Chain Network (SNS)

MATERIAL HANDLING PROVIDER OF THE YEAR• Al-Futtaim Auto & Machinery Company (FAMCO)• CHEP• Kanoo Machinery• SSI Schaefer• Span Group

TRAINING AND EDUCATION PROVIDER OF THE YEAR• Dubai Trade• Emirates Aviation College

• SP Jain Centre of Management• University of Bolton, Ras Al Khaimah• University of Wollongong, Dubai

CORPORATE SOCIAL RESPONSIBILITY AWARD• Agility• Aramex• Economic Zones World (EZW)• Maximus Air Cargo• TNT Express

OUTSTANDING ACHIEVEMENT OF THE YEAR AWARD• Abu Dhabi Airports Company (ADAC)• Aramex• CEVA Logistics• Gulf Agency Company (GAC)• Maximus Air Cargo

JUDGES AND INDUSTRY CHOICE AWARDS

Hall of Fame AwardFor the fi rst time ever, the Supply Chain

and Transport Awards (SCATA) will open a

category for public voting. The prestigious Hall of Fame

award was introduced in 2009 to honour a leading and

respected fi gurehead from the Middle East logistics industry.

The fi nalists are people who has continued to make a strong and

valued contribution to the industry’s growth over the years, while

raising the benchmark for regional and global excellence. • Fadi Ghandour (Aramex)• Fathi Buhazza (Maximus Air Cargo)

• Shaikh Daij bin Salman al Khalifa (Bahrain’s General

Organisation of Sea Ports)• Ram Menen (Emirates SkyCargo)

• Mohammed Al Muallem (DP World)

Floor Load capacity 500 kgs / sq.mFloor Load capacity 500 kgs / sq.m

Creative Warehouse Designs

Qualified advice, state of the art CAD and the personal assistance of our sales consultants can help you in creating an efficient & effective storage solution.

The conception, planning and installation can transform your warehouse in no time at all.

We would be very happy to provide you with a tailored proposal to help you evaluate your full warehouse potential.

Tel. +971 4 368 1565 Fax. +971 4 368 8017 Email. [email protected] Website. www.loc8.ae

40 May 2010 | www.arabiansupplychain.com

ASK THE EXPERT

THE PAST, PRESENT AND FUTURE OF GLOBAL WAREHOUSING HUBSA growing number of countries around the world have embraced the concept of warehousing hubs and experienced the countless benefi ts of opening a successful logistics complex. Th ese hubs are normally situated in close proximity to ‘consuming centres’ or large cities, where the turnover of stock is mainly handled on a Just-In-Time (JIT) basis. European countries such as the United Kingdom and Germany have been particularly successful in developing such hubs, while Singapore has also reached a high degree of sophistication in recent years. Looking ahead, I believe that China will continue to invest in warehousing centres and India is also being considered a strong emerging contender, although the country still requires huge investment and deregulation to compete on a global basis.

HOW GOVERNMENTS IN THE MIDDLE EAST ARE EMBRACING THE CONCEPTAs several Middle Eastern countries have been investing in the development of their logistics infrastructure, the local range of warehousing hubs has become more and more diverse. Of course, Dubai still leads the pack in terms of comprehensive and high-quality options for storage facilities, with Jebel Ali Free Zone establishing itself as the region’s ultimate superhub for supply chain operations. Dubai Airport Free Zone has also proved a success for the rapid movement of cargo, while the Kuwait Free Trade Zone (KFTZ) benefi ts from its strategic location in Shuwaikh Port, close to the international airport and the Iranian Border. Th ere are also a number of upcoming hubs with a lot of potential in the region, such as Bahrain Logistic Zone, near the recently-opened Khalifa Bin Salman Port, and of course Dubai Logistics City, which is expected to signifi cantly increase the regional capacity.

THE BEST APPROACH TO CHOOSING A WAREHOUSING HUB IN THE REGIONCompanies must consider a number of diff erent factors when selecting a warehouse hub to base their supply chain operations. GAC, for example, always looks for good port, road and air access for our critical ships spares. In addition, it helps to have a conducive environment that is facilitated by a business-friendly attitude from the free zones operator, similar to the approach of Jebel Ali Free Zone Authority in Dubai.

THE CONTINUED GROWTH OF GAC’S REGIONAL WAREHOUSE NETWORKAs a leading player in the logistics industry, GAC operates state-of-the-art facilities throughout the Middle East, including the United Arab Emirates, Bahrain, Qatar and Kuwait, enabling companies to reduce their capital investment and allowing a fl exible response to market demands. Our fl agship multi-user distribution centre in Jebel Ali Free Zone is the regional hub for our 3PL activities, off ering end-to-end supply chain management services. Th e park houses a multi-user distribution centre, cold chain section, container freight station, value-added services function and offi ce accommodation. Th is is complemented by a separate logistics facility at Dubai Airport Free Zone. As a 3PL provider, we focuses on meeting customers’ need for safe storage, fast order response and minimum inventory levels. Th e facilities are backed by our web-enabled warehouse management system GACWare for complete stock management and supply chain visibility. Detailed tracking is utilised for more eff ective marshalling, and accessing of space, providing higher throughput and fewer bottlenecks. Th e multi-user centres have capacity to handle large volumes and multiple product lines using high bay, mobile, palletised, shelved and bulk storage solutions.

HELPFUL ADVICE FOR COMPANIES THAT ARE MAKING THEIR SELECTIONFor companies that are choosing a hub, its essential to have critical mass going to and from the location, so that you can keep the stock common for as long as possible and then make it ready for the market at the last moment. One of the biggest benefi ts to this approach is a reduction in stockholding. Check the regulatory controls and meet the customs personnel in the country you wish to work in. Try to establish if they want the business and whether they have the intention to grow with your business. Th e will to do something is very important. Ask yourself, can you grow with your hub? You may wish to start small but identify if your partner has room to expand and get an option on it at the outset. Make sure you understand all the costs of doing business in your chosen hub; whilst there maybe be no taxation, they may have other extra costs. For example the labour employment model in the Middle East is far diff erent from Europe and Asia. Double check you calculations as the investment in a hub will generally be a large and long-term solution without room for mistakes.

QUESTION: What factors should be considered in the selection of a warehousing hub in the Middle East?

THE RIGHT APPROACH

This month’s column was written by Phil Showering,

general manager of logistics services at GAC Dubai

www.logisticsrecruitment.ae

WORLDLEADERSIN EXECUTIVE LOGISTICS RECRUITMENT

AUSTRALIA • ASIA • EUROPE • MIDDLE EAST • AFRICA

+971 4 361 6275


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MONTHLY AIR CARGO REPORT: EUROPE REGION*

AIRPORT/COUNTRYJANUARY 2010/2009 YEAR-TO-DATE 2010/2009

Cargo (tonnes) % CHG Cargo (tonnes) % CHG

Amsterdam (Netherlands) 109,431 17.1 109,431 17.1

Brussels (Belgium) 33,419 -0.6 33,419 -0.6

Cologne (Germany) 44,880 8.6 44,880 8.6

Frankfurt (Germany) 161,636 30.1 161,636 30.1

Istanbul (Turkey) 33,332 50.3 33,332 50.3

Leipzig (Germany) 44,242 26.5 44,242 26.5

London (Great Britain) 112,439 13.3 112,439 13.3

Luxembourg (Luxembourg) 49,652 7.7 49,652 7.7

Paris (France) 147,100 11.0 147,100 11.0

Vienna (Austria) 17,289 40.3 17,289 40.3

Warsaw (Poland) 4069 7.9 4069 7.9

Zurich (Switzerland) 23,566 13.7 23,566 13.7

FACTS & FIGURESAir Cargo Regional & International Statistics

Knowledge of cargo statistics is essential to supporting your supply chain operations. Every month,

Logistics Middle East provides its readers with three pages of the latest information from a variety of trusted

sources, including Emirates SkyCargo, Airports Council International (ACI) and Saudi Ports Authority.

MONTHLY AIR CARGO REPORT: AFRICA REGION*



Accra (Ghana) 3746 -9.9 3746 -9.9

Addis Ababa (Ethiopia) 3628 -26.1 3628 -26.1

Algiers (Algeria) 1376 -5.1 1376 -5.1

Antananarivo (Madagascar) 856 0.9 856 0.9

Cairo (Egypt) 27,619 1.0 27,619 1.0

Casablanca (Morocco) 4045 -10.0 4045 -10.0

Dar Es Salaam (Tanzania) 1193 -16.6 1193 -16.6

Djibouti (DJ) 762 30.8 762 30.8

Harare (ZW) 1610 -4.2 1610 -4.2

Johannesburg (South Africa) 23,397 30.0 23,397 30.0

Libreville (GA) 1309 -20.5 1309 -20.5

Nairobi (Kenya) 19,300 -12.6 19,300 -12.6

Tunis (Tunisia) 1450 11.8 1450 11.8

*Monthly cargo statistics for international airports, with data provided by Airports Council International (ACI). Cargo is defi ned as loaded and unloaded freight and mail (in tonnes).

INDUSTRY STATISTICS

FUEL PRICE INDEXThe fuel index is based on the average price of aviation

fuel in fi ve key spot markets (Rotterdam, Singapore,New York, US Gulf and US West Coast).

INDEX100 = 53.5 US cents per US gallon

19 February380

9 April427

12 March397

5 March392

26 March396

EMIRATES SKYCARGO FUEL PRICE INDEX

CARGO STATISTICSThis graph represents the cargo volumes handled at Dubai International Airport over twelve months. Cargo is measured as loaded and unloaded freight and mail in tonnes (Source: Airports Council International)

DUBAI INTERNATIONAL AIRPORT: CARGO STATISTICS

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MONTHLY AIR CARGO REPORT: MIDDLE EAST REGION*



Abu Dhabi (UAE) 31,753 26.1 31,753 26.1

Amman (Jordan) 6679 9.9 6679 9.9

Bahrain (Bahrain) 26,361 2.4 26,361 2.4

Beirut (Lebanon) 5369 4.3 5369 4.3

Dubai (UAE) 171,453 31.5 171,453 31.5

Fujairah (UAE) 2765 -1.0 2765 -1.0

Kuwait (Kuwait) 14, 575 5.1 14,575 5.1

Muscat (Oman) 7265 60.6 7265 60.6

Ras Al Khaimah (UAE) 335 50.2 335 50.2

Sharjah (UAE) 36,288 50.3 36,288 50.3

MONTHLY AIR CARGO REPORT: NORTH & SOUTH AMERICA*



Anchorage (USA) 183,028 38.1 183,028 38.1

Buenos Aires (Argentina) 11,906 15.7 11,906 15.7

Chicago (USA) 96,483 24.3 96,483 24.3

Los Angeles (USA) 128,247 24.9 128,247 24.9

Memphis (USA) 316,761 5.9 316,761 5.9

Mexico City (Mexico) 27,562 18.7 27,562 18.7

*Monthly cargo statistics for international airports, with data provided by global trade association Airports Council International (ACI). Cargo is defi ned as loaded and unloaded freight and mail (in tonnes).

MONTHLY AIR CARGO REPORT: ASIA PACIFIC REGION*



Ahmedabad (India) 1919 14.9 1919 14.9

Bangalore (India) 14,969 20.7 14,969 20.7

Bangkok (Thailand) 98,515 44.8 98,515 44.8

Calcutta (India) 8879 29.0 8879 29.0

Colombo (Sri Lanka) 12,725 25.9 12,725 25.9

Fukuoka (Japan) 18,805 8.2 18,805 8.2

Hong Kong (China) 304,262 43.0 304,262 43.0

Jakarta (Indonesia) 42,543 18.6 42,543 18.6

Kuala Lumpur (Malaysia) 51,849 28.3 51,849 28.3

Manila (Philippines) 32,418 65.4 32,418 65.4

Mumbai (India) 52,064 30.5 52,064 30.5

Osaka (Japan) 55,279 48.4 55,279 48.4

Seoul (Korea) 12,037 -9.3 12,037 -9.3

Shanghai (China) 244,651 82.1 244,651 82.1

Singapore (Singapore) 143,338 20.2 143,338 20.2

Taipei (Taiwan) 136,658 89.2 136,658 89.2

Tokyo (Japan) 159,538 44.7 159,538 44.7

INDUSTRY STATISTICS

For up-to-datefi gures, visit:


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FACTS & FIGURESSea Freight Regional & International Statistics

INDUSTRY STATISTICS

FUJAIRAH BUNKER FUEL PRICE INDEX

BUNKER FUEL PRICE INDEX*

PORT / COUNTRY IFO380 IFO180 MGO MDO

Busan (South Korea) 507 517 732 722

Cape Town (South Africa) n/a 543 767 n/a

Fujairah (UAE) 486 497 697 n/a

Hamburg 478 498 731 690

Houston (USA) 465 478 n/a 690

Istanbul (Turkey) 515 535 n/a 755

New Orleans (USA) 468 478 n/a 690

Piraeus (Greece) n/a n/a n/a n/a

Port Klang (Malaysia) 489 499 720 n/a

Rio de Janeiro (Brazil) 488.5 507 823 n/a

Rotterdam (Netherlands) 473.5 491 723 n/a

Singapore (Singapore) 484.5 496 708 n/a

*Information on the bunker fuel price at port facilities in the Middle East, North and South Europe, North and South America, and Asia, featuring data from 12th April 2010. The prices are quoted in US$ per metric tonne and split into four categories: 380 centistoke (IFO380), 180 centistoke (IFO180), Marine Gas Oil (MGO) and Marine Diesel Oil (MDO).

TOTAL THROUGHOUT FOR SAUDI PORTS IN TONNES

CARGO TYPEFEBRUARY 2010 YEAR-TO-DATE

Discharged Loaded Discharged Loaded

Bulk cargo (solid) 1,455,977 512,271 2,769,256 1,163,365

Bulk cargo (liquid)* 310,887 4,324,006 682,636 8,679,572

General cargo 490,890 34,697 1,088,892 115,553

Containers (in tonnes) 1,869,434 1,540,888 4,164,991 3,068,476

Ro-Ro and vehicles 109,939 11,037 263,530 26,397

Livestock 14,334 n/a 24,982 n/a

TOTAL 4,251,461 6,422,899 8,994,287 13,053,363

TOTAL PORT THROUGHPUT 10,674,360 22,047,650

Summary of cargo throughput for majorSaudi Arabian ports - Saudi Ports Authority

Source: Saudi Ports Authority (SPA). The statistics cover all major Saudi Arabian ports (dead weight in tonnes).*Bulk cargo (liquid) excluding crude oil.

12 Jun407.5

12 Aug447.5

12 Jan480

12 Mar459.5

12 Sept435

12 Nov464.5

CONTAINERS (TEU) 2010 2009

February Year-to-Date February Year-to-Date

Discharged 173,742 375,283 152,819 314,092

Loaded 171,672 386,592 169,964 367,968

TOTAL 345,414 761,875 322,783 682,060

Our sea freight data includes information on bunker fuel

prices at major port facilities in the Middle East, North and

South Europe, North and South America, and Asia. More

specifi c cargo statistics are also provided from the Saudi

Ports Authority, covering the major ports in the Kingdom.

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06 070809 10011 02203TRADE EVENTS


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EVENTS CALENDARA listing of trade shows, conferences and seminars relating to the Middle East logistics industry

12th May 2010GLOBAL LOGISTICS AND SUPPLY CHAIN MANAGEMENT SUMMITTh e Supply Chain and Logistics Group (SCLG) has confi rmed over 200 speakers and panellists for its third annual Global Logistics and Supply Chain Management Summit in Dubai this month. Th e event, which takes place at the Madinat Jumeirah hotel on Wednesday 12th May, will focus on eight tracks in total, including transportation and logistics, research and education, technology and best practices, fi nances and liabilities, and retail supply chain management.VENUE: Madinat Jumeirah Hotel, DubaiEMAIL: [email protected] WEBSITE: www.sclgme.org

10th – 12th October 2010TRANSOMANTransOman, the Sultanate’s leading event for shipping, transportation and logistics companies, will provide a three-day forum for local industry professionals to discuss the latest issues that are eff ecting the domestic market’s development. In addition, delegates will be provided with the opportunity to network with their colleagues, exchange valuable information and predict the newest opportunities that are expected to arise in the local sector.VENUE: Oman International Exhibition CentreEMAIL: [email protected]: www.trans-oman.com

23rd – 24th November 2010TRANS MIDDLE EASTTh e historical maritime city of Alexandria in Egypt has been selected as the host city for this year’s Trans Middle East exhibition and conference. Th e event is expected to attract around 70 exhibitors from around the world, while a supporting conference has a target audience of 500 senior executives from Europe, the Middle East and Africa (EMEA), who will discuss the latest trends in logistics, shipping and container ports, including challenges from the market downturn.VENUE: Hilton Alexandria, EgyptEMAIL: [email protected]: www.transportevents.com

2nd June 2010SUPPLY CHAIN AND TRANSPORT AWARDS (SCATA) 2010A record number of nominations have been received for the fourth annual Supply Chain and Transport Awards (SCATA), which take place at the Grosvenor House hotel in Dubai on Wednesday 2nd June. Th is year’s event will have 16 categories in total, such as 3PL service provider of the year, express logistics company of the year and FMCG supply chain of the year. Finalists include Aramex, Maximus Air Cargo, TNT Express and Gulf Agency Company (GAC).VENUE: Grosvenor House Hotel, DubaiEMAIL: [email protected]: www.arabiansupplychain.com/scata

24th October 2010CILT NETWORKING EVENT Following the success of its previous seminar in April, the Chartered Institute

of Logistics and Transportation (CILT) has confi rmed plans to host a follow-up event at Emirates Aviation College in Dubai on 24th October 2010. Th e session is aimed at trade professionals from across the regional industry, in addition to students that have enrolled on a supply chain programme. A variety of topical issues will be tackled by speakers from the Middle East, in addition to countries such as the UK and Holland.VENUE: Emirates Aviation College, DubaiEMAIL: [email protected]: www.ciltuae.org

5th – 7th June 2011SITL DUBAIHosted by Reed Exhibitions, the second SITL Dubai exhibition will take place at Dubai International Convention and Exhibition Centre in June 2011, with a predicted 250 exhibitors from the supply chain and transportation sector. Th e event, which has been organised in co-location with the Airport Show exhibition and conference, is being marketed as a leading platform to connect the key markets in the East with their counterparts in the West.VENUE: Dubai Convention & Exhibition CentreEMAIL: [email protected] WEBSITE: www.sitldubai.com

20th – 23rd June 2010SUPPLY CHAIN MANAGEMENT AND LOGISTICS SAUDI ARABIAIQPC has expanded its Middle East event portfolio with a supply chain and logistics seminar in Jeddah, Saudi Arabia. Th e event is expected to highlight a variety of cutting-edge strategies that have been successfully adopted in other parts of the world and hold great potential for the Kingdom’s highly specialised market. Speakers include Alex Borg (Chartered Institute of Logistics and Transport), Abdullah Khaldi (Saudi Aramco) and Yasir Jamal (Unilever Arabia).VENUE: Jeddah, Saudi ArabiaEMAIL: [email protected]: www.supplychainsaudiarabia.com

26th – 28th October 2010SEATRADE MIDDLE EAST MARITIMEHeld under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, vice president and prime minister of UAE and ruler of Dubai, the latest instalment of Sea Trade Middle East Maritime will take place at Dubai International Convention and Exhibition Centre in October. Th e exhibition and conference is expected to bring together the global ship-owning community with businesses that specialise in international ship equipment, in addition to product and service suppliers in the Middle East.VENUE: Dubai Convention & Exhibition CentreEMAIL: [email protected]: www.seatrade-middleeast.com

September 2011MATERIALS HANDLING MIDDLE EASTEstablished in 2001, Materials Handling Middle East is marketed as the leading trade exhibition and conference for the regional logistics industry. Th e fi fth edition of the show gathered around 175 industry leaders from 27 countries, who showcased their products and services to 6,805 key purchasers from 82 countries around the world. Exhibitors included the likes of SSI Schafer, FAMCO, Ehrhardt + Partner Solutions (EPS), LOC8 and Business Systems Group (BSG).VENUE: Dubai Convention & Exhibition CentreEMAIL: [email protected]: www.materials-handling-dubai.com

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48 May 2010 | www.arabiansupplychain.com

FACE TO FACE

What are the objectives of TTL Shipping and Logistics as a Middle East company?We were established in April 2007 with a vision to become the logistics partner of choice for our customers by adding value to their businesses. At that point in time, TTL Shipping and Logistics was actually focused on serving the needs of customers in confl ict zones, such as Sudan, Iraq and Afghanistan. I would like to think that our dedication and success induced these customers to support our growth in other sectors too. Within a short period of time, TTL Shipping and Logistics has established a global network with the help of trusted overseas partners to off er a total logistics solutions in every part of the world.

How many offi ces are operated by TTL Shipping and Logistics at present?Our core business of servicing the Afghan sector is handled by our Pakistan offi ce and we are planning to open a Kabul offi ce by July 2010 to consolidate our position in the Afghanistan market. Within Dubai, there is a corporate offi ce and dedicated seafreight department in Karama, together with a branch offi ce that handles airfreight at Dubai Airport Free Zone. We are also in the process of establishing a presence in Abu Dhabi later this month.

How were your logistics operations impacted by the global recession?It’s true that our growth rate was the best in 2007 and 2008, which helped TTL Shipping and Logistics to evolve as a reliable service provider, especially in the Afghanistan and African markets. Like any other service provider, our team has seen through the slump in 2009 and we’re still smiling. Our clients have remained supportive at all times and we actually increased our staff strength to meet growing demand within the market.

What strategy have you implemented to grow your business in a market slump?We utilised this unexpected opportunity to build unique and mutually benefi cial relationships. Although the profi t-rates have come down, the situation has created equilibrium in the market, because the prices we now receive from suppliers has allowed the company to secure larger accounts. To elaborate, the shipping lines are more forthcoming to off er good rates to whoever has access to the load, whereas before the recession it was only the big players that had highly preferential rates, making it diffi cult for smaller companies to even get a shot at the large accounts.

Have you experienced other advantages as a smaller player in the local market?As a small player, we can aff ord to be more responsive and provide a personal touch. It is inevitable that we have to live or compete with companies of diff erent sizes, while everyone will have their own USPs as well as disadvantages. Th ere are numerous opportunities in the market, which is either ignored or out-of-reach for large players, we continuously seek those opportunities and use them as fodder to our growth.

How would you explain the success of TTL Shipping and Logistics in terms of providing services to the Afghan market?With the experience that we have gained over the years in this volatile area, TTL has established a solid reputation as a reliable service provider by major suppliers from the UAE, as well as overseas. As a result, a considerable amount of business has come our way from word-of-mouth. Also, we have earned a great deal of credibility for the manner in which we deal with our suppliers, which range from shipping lines to airlines and charter operators. For this reason, we enjoy their continuous support.

Will the Afghanistan market remain your main focus for growth in the future?Afghanistan is clearly leading our export business, although we have substantial volumes to the African sector, plus imports from the Far East, UK and NWC Ports. We are one of the preferred service providers for customers that deal with products such as food supply, power supply, glass and ceramic manufacturers. In July 2009, we also set up a household goods division to take care of the growing requirements of local and international relocations, so we have a growing list of satisfi ed clients from this part of our operations as well.

In your opinion, what does the next year hold for TTL Shipping and Logistics?We are working on substantial volumes out of the Middle East and improving our coverage in Afghanistan with a dedicated offi ce there. As previously mentioned, there are plans to establish an Abu Dhabi offi ce too, which will cater to the oil and gas industry. Finally, we have exclusive 3PL arrangements with various customers in Jebel Ali Free Zone, which supports the plan to expand our infrastructure by 2011.

VOLATILE MARKETSWith a considerable amount of success in confl ict zones such as Afghanistan, Iraq and Sudan, the future is looking bright for Dubai-based TTL Shipping and Logistics, explains CEO Raaju Sundararaaj.

FACE TO FACE INTERVIEW

For all local enquiries, please contact: UAEMirnah Technology Systems DubaiPO Box 181529,Dubai, UAETel: +9714 268 7557Fax: +9714 268 227E-Mail: [email protected]

Saudi Arabia Mirnah Technology SystemsPO Box 62812,Riyadh 11595Saudi ArabiaTel: +9661 4621545/+9661 4628022Fax: +9661 4623812Email: [email protected]

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logistics middle east - may 2010

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