logistics middle east - nov 2009

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSNOVEMBER 2009 ISSUE 62

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

An ITP Business Publication

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

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

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“Give all my cargo undivided

attenti n.”

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

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

© 2009 Agility Logistics AG

Agility is a leading logistics company with 37,000 employees taking care of our customers in more than 120 countries. Put your local office to the test: [email protected].

1www.arabiansupplychain.com | NOVEMBER 2009

CONTENTS

CONTENTS

02 Editor’s LetterFollowing months of hype, we refl ect on the success of this month’s SITL Dubai.

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

07 News Update• Safety concerns raised in the United Arab

Emirates after a series of warehouse fi res• CEVA expands Dubai warehouse network• Aramex milestone at Dubai Logistics City• First Bahrain starts SME logistics venture• GAC brings Swiss Post to the Middle East• UASC signs logistics deal with Momentum• SPAN completes racking project in Qatar• CHEP expands regional service network• CILT breaks record with Dubai seminar

Issue 62 November 2009

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

20 Cover StoryUncovering the facts behind the multi-million dollar launch of Wared Logistics.

24 Middle East Airfreight ReportHow the air cargo industry has continued to showcase its resilience in the Middle East.

30 Chemical ReactionWith the growth of niche logistics, does the petrochemical sector hold much potential?

34 SITL Dubai Show ReportHighlights and photo special for this month’s SITL Dubai 2009 exhibition and conference.

42 Top 10 Forklift TrucksProfi les of the latest forklifts to enter the Middle East materials handling market.

48 Ask The ExpertStorall’s Ghassan Abughazaleh explains the growing popularity of self storage solutions.

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

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

56 Face To Face InterviewRolf Habben-Jansen, global CEO of Damco, refl ects on the merger with Maersk Logistics.

20

07 34 48

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A refl ection on the debut of SITL in Dubai

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EDITOR’S LETTER

ollowing months of hype, the global exhibition SITL fi nally made its debut in the Middle East this month, with approximately 5000 people

in attendance from across the industry. Th e impressive turnout is probably enough to keep the event’s organiser Reed Exhibitions happy, even though its earlier prediction of 250 exhibitors was later reduced to 200 exhibitors and, at fi nal count, was squashed even further down to 80 exhibitors. However, in the name of quality over quantity, some of the logistics sector’s biggest names were still present, including the likes of DP World, Jebel Ali Free Zone, Agility, Al-Futtaim Logistics, Port of Sohar and TNT Express.

A number of VIPs were also spotted doing the rounds at Dubai International Convention and Exhibition Centre for the event, with powerful guests including His Highness Sheikh Ahmed Bin Saeed Al Maktoum (chairman of Dubai Aviation City Corporation), His Excellency Sultan Ahmed Bin Sulayem (chairman of Dubai World), Salma Hareb (CEO of EZW) and Rashed Buqara’a (COO of Dubai Aviation City

FCorporation). Th e four fi gureheads were invited to announce a committee that has been drafted to manage the proposed Dubai Logistics Corridor project – you can read about that, plus all the other highlights from SITL, in our show report this issue.

Also making an appearance at the exhibition, all the way from Saudi Arabia, was the Middle East’s latest entrant to the 3PL sector, Wared Logistics. Th e company, which features on this month’s cover of Logistics Middle East, has grand ambitions to rapidly develop its presence throughout the region – and what’s more, it’s got the fi nancial backing from its two owners - Construction Products Holding Company (CPC) and Zahid Holding Group - to turn those dreams into a reality. We were provided with exclusive access to the development plans by Brian McHale, chief executive offi cer of Wared Logistics, which are detailed later in the magazine. Enjoy the read!

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

*BPA Worldwide AuditedAverage Qualified Circulation6,044 (Jan - June 2009)

Providing the Ultimate Logistics Solutions in the Middle East and North Africa (MENA) Region


The defi nition of logistics hub?Dear Editor,

I am writing in regards to a news story in the last issue of Logistics Middle

East, which was entitled ‘$26 billion projects to turn UAE into logistics hub’. Th e article raised a number of important points, but I have to question Standard Chartered Bank’s reasoning that a country can automatically develop into a

logistics hub with the development of massive warehousing projects.

On the contrary, I believe that a look at cargo volumes would provide a

better indication on whether Dubai and the other emirates have succeeded in their endeavour to become global logistics hubs. Rajesh Mukherjee

Poor assessment from reportDear Editor,Following your article on the logistics potential of the United Arab Emirates, I believe the country is already a major logistics hub and has been one for many years now. Perhaps this representative from Standard Chartered Bank does not have much knowledge of the industry if he believes that two or three upcoming developments might now ‘turn the UAE into a logistics hub’. He might consider looking at the cargo volumes instead.Nigel Moore, Logistics Executive

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Anniversary congratulationsDear Editor,Th e cover story on Globelink West Star Shipping in Logistics Middle East was interesting to read and I would like to personally congratulate Martin Aranha and the entire team at Globelink West Star Shipping on their achievements. Th e company has certainly come a long way since its launch 20 years ago and here’s to their continued success in the future.Santosh Kumar, Cargolux

Three cheers for GlobelinkDear Editor,Globelink West Star Shipping is indeed a ‘silent leader’, as covered in the last issue of your magazine. Reaching its 20th anniversary is a major milestone for the company and it’s great to hear about their various developments in the Middle East. Congratulations to everyone involved!Ramesh Kumar S.

Seminar success for CILTDear Editor,I was part of a student delegation from the Institute of Management Technology that attended the recent CILT seminar in Dubai and felt privileged to be part of this event. It was fascinating to hear the thoughts of CILT’s regional director Alex Borg and other leaders from the logistics sector. I look forward to the follow-up seminar.Avaneendra Mishra

Please address your letters to: Logistics Middle East, PO Box 500024, Dubai, UAE or email: [email protected](Please provide your full name and address, stating clearly if you do not wish them to appear in print. All letters will be edited for clarity of shortened to fi t the allotted space).

READERS LETTERS

Avaneendra Mishra

tics Middle East, PO Box 500024, Dubai, UAE or email: robbe lel hh.haqaq@i@i@i@ittptptp cc.comomomomq p

Warehouse wonders from GACDear Editor,Here is some input for your article on the top 10 GAC warehouses around the world. I’ve dealt with this company on a number of occasions and have always been impressed with their customer service levels. Although their operations might not match the scale of a player such as Agility, I am confi dent that GAC Logistics will continue its growth around the world in the future and emerge as a market leader on a global level. It would be useful to have similar articles on other companies in the Middle East logistics industry, so readers can have a comparison on the warehouse networks of GAC’s competitors.Salil Moharam

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NEWS UPDATE

Warehouse fi res raise safety concerns in UAE

afety standards in the Middle East logistics industry must be improved to combat a growing number of warehouse fi res in the region, according to research by Duval Messien.

The company, which specialises in earthing systems, has warned that a recent spate of warehouse fi res in cities such as Sharjah and Dubai could have a link with poor adherence to electrical fault prevention. In contrast, regions such as Europe and North America have lowered their incident rates by introducing stringent regulations for the storage and handling of cargo.

“Temperatures in the Middle East can sometimes hit a sweltering 500C in summer months, so its not uncommon for earthing pits to dry up in less than three months,” said Sonjib Banerjee, technical director at Duval Messien. “This increases the risk of warehouse fi res, with even a single spark being capable of quickly spreading and causing damage to cargo.”

Over 60% of respondents to a recent survey by Duval Messien were unaware that conventional earthing systems could become redundant or ineffective over time. In addition, 80% were unsure when their earthing systems were last checked.

“Authorities in Sharjah and Dubai have started to tighten their regulations for warehouse safety in recent years,” continued Banerjee. “This is expected to intensify the inspection process for companies, buildings and work sites to ensure compliance with safety rules, especially for the storage of fl ammable materials and explosives such as fi recrackers, chemicals and gas cylinders.”

Banerjee’s comments follow a string of devastating fi res in the United Arab Emirates last month, including a major blaze in Sharjah that completely gutted three warehouses and fi ve electric shops. The incident was reportedly caused by an electrical short circuit, while traders - many of whom were uninsured - have estimated that damage costs to their properties could amount to approximately US$7 million.

SLogistics sector under pressure to boost safety standards after recent blazes in Sharjah and Dubai

NEWS UPDATE

• An investigation has been launched into a warehouse fi re at Sharjah Airport International Free Zone on Tuesday 27th October 2009. The storage facility was operated by Al Zahra Furniture and damage amounted to millions of dollars.

• A warehouse facility for wooden doors and windows in the Ras Al Khor area of Dubai was partially gutted after a blaze on Thursday 15th October 2009. The fi re was under control within 10 minutes and Dubai Civil Defence has started an investigation.

• Three warehouses and fi ve electrical shops were completely gutted at a Sharjah industrial estate following a major fi re on Monday 12th October 2009, which was reportedly caused by an electrical short circuit.

WAREHOUSE FIRES IN THE UNITED ARAB EMIRATES

Only a couple of weeks later, a similar incident occurred at a warehouse belonging to Al Zahrah Carpet Factory in Sharjah Airport International Free Zone, leaving one worker hospitalised with minor injuries. “It was like the whole warehouse burst into fl ames in a minute,” said Talal al Midfa, administration manager at the free zone. “Thanks to a quick response from Sharjah Civil Defence, the fi re was contained within an hour.”

A variety of initiatives have been launched in the past year to address mounting concerns about warehouse fi res. Earlier this year, Dubai Civil Defence revealed plans to install electronic devices in warehouses to provide an alarm system in case of fi re outbreak. Soon afterwards, Sharjah Civil Defence tightened its regulations for warehouse operators in the emirate, which has already proved a success according to director general Waheed Al Serkal. “Almost all companies in Sharjah have now installed fi re safety equipment in their warehouses,” he stated. “We have made it mandatory to all newcomers before getting their licence.”

8 NOVEMBER 2009 | www.arabiansupplychain.com

NEWS UPDATE

demand for outsourced logistics services,” said Fadi Ghandour, founder and CEO of Aramex.

“This timely launch will further enhance our ability to deliver cost-effective and reliable logistics solutions for our regional and global

TCS Express is the latest courier company to introduce the Dubai Metro into its delivery channels in the Middle East. The logistics fi rm has appointed a dedicated team of couriers to deliver packages and other items using Dubai’s latest mode of transportation. “We hope to capitalise on the metro system by introducing a number of OTCs (on train couriers), who will ensure a faster delivery and support TCS’s effort to reduce its fuel emissions,” said Mazhar Ayub Khan, head of freight and logistics, TCS Express.

Empost has revamped its global courier services, with a maximum discount of 50% being introduced for express deliveries to more than 200 destinations around the world.“Since we have started a major expansion of international services, Empost will reward our customers with a substantial rate reduction,” explained Sultan Al Midfa, CEO of Empost. “We are fully focused on emerging stronger after the recent slowdown that has affected every sector, every industry. We believe these new rates will help to boost our relationship with customers.”

Thomsun Mercantile and Marinehas opened its latest warehouse inJebel Ali Free Zone, with a built-up area of 19,000m2 and open yard of30,000m2. The facility has been designed for clients in the retail, electronics, automotive and fast moving consumer goods (FMCG) sectors. “Although the recession has impacted a number of players in the logistics sector, Thomsun Mercantile and Marine has chosenthis challenging period to expandand strengthen its operations and position itself as a leading providerof supply chain services,” explaineda spokesperson from the company.

CEVA Logistics has continued its Middle East expansion with

the launch of a 12,000m2 facility in Jebel Ali Free Zone, which has been designed and built by Gazeley.

The facility has been named ‘Pyramid’ and will operate as

(From left to right) Shamsudeen Ahmed and Gianfranco Sgro from CEVA Logistics with EZW’s Salma Hareb and Talal Al Hashemi

Aramex has broken ground on its much-awaited warehousing

facility at Dubai Logistics City.The US$32.7 million storage

complex, which encompasses a built-up area of over 43,000m2, is due for completion in the fi rst quarter of 2011 and will include capacity for more than 40,000 pallet locations, as well as a specialised terminal for express air cargo, sea cargo and land freight shipments.

Addition land is also available at the site to increase capacity at a later stage.

“This facility is a signifi cant milestone that demonstrates Aramex’s long-term strategy to strengthen our infrastructure in the Middle East and North Africa to capitalise on growing

CEVA expands with Dubai warehouse

Sheikh Ahmed is joined by Fadi Ghandour and other offi cials for the ground breaking

Aramex milestone for Dubai Logistics City project

WAREHOUSE

Logistics powerhouse hosts a special ceremony to open its new storage centre in Jebel Ali Free Zone South

the headquarters for CEVA Logistics in the Middle East.

“We are rapidly expanding our presence in Dubai and expect our facilities in Jebel Ali Free Zone to grow by a further 65,000m2 in the next 12 months, taking our total space in the area to approximately 110,000m2,”

explained Shamsudeen Ahmed, regional director of CEVA Logistics in the Middle East.

The company’s Pyramid warehouse has 13 loading bays and will manage products for four key regional customers in the electronics, fashion and industrial sectors.

3PL

NEWS IN BRIEF

clients, while providing them with greater capacity for their logistics needs,” he added.

The ground breaking ceremony was conducted by His Highness Sheikh Ahmed bin Saeed Al Maktoum, chairman of Dubai City of Aviation Corporation.


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

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First Bahrain starts logistics ventureMajaal unveiled as region’s fi rst logistics company to focus on small and medium enterprises (SME) sector

First Bahrain has announced the launch of its latest subsidiary,

Majaal, which is being marketed as the fi rst logistics company in the Middle East to focus on the small to medium enterprises (SME) market.

WAERHOUSE

The venture was unveiled during a special ceremony at the Ritz Carlton Bahrain Hotel last month and will operate from a US$45 million logistics complex at Bahrain Investment Wharf, in close proximity to Shaikh Khalifa Port.

“Majaal will offer secure and cost effective storage solutions, tailored specifi cally to meet the needs of the small to medium enterprises (SMEs),” said Amin Al Arrayed, general manager of First Bahrain.

“This venture is also unique because it offers more than just storage solutions. It incorporates a number of value added features, such as fi t-out support, racking installation and a business centre from where customers can receive logistics support and rental options for forklifts and other support vehicles,” he added.

First Bahrain is planning to market its Majaal brand across the Middle East, with hopes of expanding the company through franchises in countries such as the United Arab Emirates, Saudi Arabia and Qatar. Amin Al Arrayed and Salah Al Wuhaib from First Bahrain at the Majaal launch event

Bahrain Logistics Zone (BLZ) has confi rmed a growing amount of attention from food distribution companies in the Middle East, with local players Mohamed Ali Zainal Abdulla (Maza) and Chunilal Purushottam & Company being signed as the industrial area’s latest tenants. “The encouraging feedback that we have received from the market has highlighted the potential of Bahrain Logistics Zone as a food distribution hub for the Kingdom and other Middle Eastern countries,” said Hassan Al Majed, director general of General Organisation of Sea Ports (GOP), on behalf of Bahrain Logistics Zone.

NEWS IN BRIEF

NEWS UDPATE


NEWS UPDATE

solutions, including dedicated warehouse space and container maintenance services.

The agreement is the latest in a string of contract wins for the

DHL Express was assigned the challenge of transporting around 300 tonnes of equipment to Abu Dhabi last month for the Formula 1 Grand Prix, which required the use of fi ve Boeing 747s and 35 sea freight containers. “We’re proud to be the offi cial logistics partner of Formula 1 and understood the need for fast, precise and fl exible logistics support for this ground-breaking race, which was watched by 5.4 billion people around the world,” said Garry Kemp, managing director of DHL Express in North Africa, Middle East and Turkey.

Chapman Freeborn transported 30 portable housing units from Ras Al Khaimah to Kabul last month in support of local relief projects. The charter specialist’s Dubai offi ce arranged fi ve An-124 charters for the US Embassy, each containing six 40ft housing containers. “Thisproject was a challenge and needed a lot of coordination between our Dubai offi ce, our operations team and employees at Ras Al Khaimah airport to ensure a timely delivery,” explained Lloyd D’Souza, cargo specialist at Chapman Freeborn.

Hala Supply Chain Services hasbeen confi rmed as the Middle East distributor of KBR Wireless mobile technology solutions, which are designed for companies in the oiland gas industry. A promotional campaign has already commenced to support the partnership, with the KBR Wireless product range being showcased at this month’s Saudi Arabia Oil & Gas Exhibition and Conference (SAOGE). “This event is perfect for marketing our latest product offering to decision markers from oil and gas fi rms,” stated Hala Supply Chain Services managing director Husam Al Saleh.

GAC has signed an agreement to bring the core documentation

services of Swiss Post Solutions to the Middle East.

The partnership, which will operate as GAC Offi ce Solutions, has been designedto combine the commercial skills, customer knowledge and geographical reach of GAC with the document outsourcing capabilities of Swiss Post Solutions.

These include mailroom services, document scanning and processing, data capture, archive management, third party supplier management and the recently announced Swiss Post Box and Inca Mail products.

“This strategic tie-up with Swiss Post enables us to provide Gulf-based maritime and logistics clientele with value-added offi ce solutions that can trim cost, enhance productivity and improve information management,” stated Christer

Group vice president Christer Sjödoff predicts a bright future for GAC Offi ce Solutions

Momentum Logistics has secured a contract to provide United Arab

Shipping Company (UASC) with a range of supply chain

GAC reveals Swiss Post partnership

Matthew Derrick (Momentum Logistics, right) poses with Waleed Al Dawood (UASC)

UASC signs logistics deal with Momentum

3PL

Logistics company fi nalises agreement to bring global document management leader to the Middle East

3PL

NEWS IN BRIEF

Sharjah-based logistics fi rm, which was launched by port operator Gulftainer in October 2008, with an investment of one billion dirhams to expand its global operations over the next seven years.

“UASC is already a major and active user of our Khorfakkan Container Terminal where, I am pleased to say, we have regularly set records of performance and productivity on their ships,” said Matthew Derrick, general manager of Momentum Logistics.

“We very much value that long-term relationship and look forward to exploiting this additional venue of collaboration, with a focus on our core values of transparency, accountability and effi ciency.”

Sjödoff, group vice president for GAC Solutions.

“GAC was attracted to Swiss Post Solutions by its reputation as a provider of international

document solutions for a portfolio of blue chip companies, such as Zurich Financial Services, Siemens and Microsoft,” he added.


NEWS UPDATE

in the Middle East, with customers including Proctor & Gamble, Pepsi International and Panda Hypermarkets.

“Our unique service has been in high demand, with many clients understanding the benefi ts of integrating their in fl ow streams onto CHEP pallets to further reduce costs,” commented Kevin

A strategic partnership has been signed between the Dubai-based logistics company Transworld and Suzue Corporation from Japan. As part of the agreement, Transworld will represent Suzue’s portfolio of freight forwarding and logistics services in the Middle East, while Suzue will represent Transworld in Asia. “We are proud to announce this partnership with an industry leader such as Suzue and look forward to building our relationship in the coming years,” said Warren Jacob, CEO of Transworld Logistics.

Asscom Middle East has launched a storage and repair service for the aviation sector, which will be based at the Airbus logistics complex in Dubai Airport Free Zone. “We are thrilled to establish our base in Dubai, a location that will provide our company with a multitude of unequalled opportunities,” stated Peter Wiggers, managing director of Asscom. “This centre will offer customer support services to both airlines and OEMs in the Middle East, Africa and Southern Asia.”

Eships (Emirates Ship Investment Company) has secured a lucrative three-year contract to transport approximately one million tonnes of alumina a year for Abu Dhabi based Emirates Aluminium (Emal). The specialist cargo will be shipped from Australia and unloaded at Jebel Ali Port in Dubai, with plans to shift the base to Abu Dhabi once Khalifa Port and Industrial Zone is operational. “This tender was very competitive, with over 15 shipping companies bidding from around the world,” commented Scott P. Jones, CEO of eShips. “It was an excellent opportunity for Eships to prove the quality of our shipping service to a major industrial customer.”

Al Bayader has implemented a pallet racking system from

SPAN Group for its recently-launched warehouse in Qatar.

The company, a regional player in the food packaging industry, has previously worked with SPAN Group for its logistics centres in Dubai, Abu Dhabi, Sharjah and Oman.

“Our latest facility in Doha includes 6000m2 of warehouse space, in addition to 1200m2 of factory space and 1500m2 of offi ce and showroom space,” said Nidal Haddad, CEO of Al Bayader.

“It has added a new dimension to the business by transforming us into a manufacturing and distribution centre,” he added.

Choosing the racking system involved a three-step process, according to Nadim Al Fakih, account manager at SPAN Group. The fi rst was a consultation to review Al

Nadim Al Fakih from SPAN Group overlooked the racking contract from Al Bayader

CHEP Middle East has opened its fi rst consolidation centres

in Bahrain and Oman to capitalise on growing demand for pallet services within the GCC region.

The company, which provides a global pallet pooling service, has rapidly developed its clientele

SPAN wraps up Qatar racking project

Demand for its pallet pooling service has prompted CHEP Middle East to launch new consolidation centres in Bahrain and Oman

CHEP expands Middle East service network

MATERIALS HANDLING

Dubai-based material handling fi rm hails the successful completion of Al Bayader’s warehouse contract

Bayader’s requirements, the second was the creation of a CAD design to simulate an effi cient racking system, and the third was on-site installation.

“We designed the layout of the distribution centre and helped Al Bayader select the best racking for their operations,” explained

MATERIALS HANDLING

NEWS IN BRIEF

Smyth, managing director of CHEP Middle East.

“With the launch of these consolidation centres in Bahrain and Oman, in addition to our existing network in the United Arab Emirates, Saudi Arabia, Qatar and Kuwait, we can better support clients and their suppliers,” he added.

Al Fakih. “They wanted a system that was suitable for the storage of various stock keeping units (SKU) and the racking that we supplied is designed to improve stock rotation and provide storage fl exibility, providing Al Bayader with new levels of logistics effi ciency.”


NEWS UPDATE

Salma Hareb, chief executive offi cer of Economic Zones World (EZW) received the ‘Businesswoman of the Year’ at last month’s Women in Leadership Forum for her role in transforming Jebel Ali Free Zone Authority (Jafza) – EZW’s fl agship brand – into a global success story. “I would like to thank the Women in Leadership Forum for this award,” commented Hareb while collecting her trophy at the Burj Al Arab hotel. “Our goal has always been constant – to remain the Middle East’s most attractive investment base, while playing a fundamental role in the economic progress of Dubai and the entire nation.”

NEWS IN BRIEF

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Dulsco prepares for market recoverySenior executive predicts an upswing in demand for manpower services from the regional logistics sector

Following a recent lull in demand for manpower services

in the Middle East logistics industry, Dulsco HR Solutions has claimed that “the worst is over” and the regional market is heading towards a recovery.

The company, which has more than 2000 employees supporting the logistics sector, is now planning to boost its pool of skilled candidates for companies to hire on a monthly, weekly or daily basis.

“We strongly believe that the worst is over, at least here in the UAE. We too felt the lull in the global shipping industry, but we are hopeful of a turnaround soon,” commented Surjeet Singh, general manager of logistics, Dulsco HR Solutions.

“Besides being a developing economy, the United Arab

OPERATIONS

Emirates gets its edge from being the distribution hub for the Middle East and Africa region. Since we cater to the manpower requirements of several logistics companies, in

Surjeet Singh from Dulsco HR Solutions is positive about demand for logistics talent

addition to the local network of shipping ports and airports, we have the internal fl exibility to re-deploy these personnel on other sites so that our utilisation rate remains high,” he added.


NEWS UPDATE

“The conference has been organised for supply chain and logistics professionals in the Middle East to share strategies, tactics and ideas on equipping their supply chains for a forthcoming upturn in economic conditions,” explained Mario Ghosn, general manager of SNS.

“This is a chance for attendees to participate in informal networking and discussions with fellow industry professionals, learn the best practices being applied to enhance supply chains performances and identify investment opportunities that can optimise their operations,” he added.

For further information on the event, which is being held at the Bristol hotel in Beirut

CeMAT Middle East has received a solid response from international logistics players that are looking toinvest in the Middle East, according to organiser Deutsche Messe. The exhibition, which makes its debutin February 2010, will be hosted at Dubai International Convention and Exhibition Centre. “The response from global exhibitors, trade buyers and government agencies has been remarkable, which proves that the market conditions in this region arestill very attractive,” stated AngelaSchaschen, managing director of Deutsche Messe’s Dubai branch.

SSI Schaefer is hosting its latest Automation Congress in the Middle East to provide an update on recent developments in dynamic storage and order-picking systems. The free event will take place at Le Meridian Beach Resort and Spa in Dubai on Wednesday 9th December 2009. “We will look into the benefi ts of automation in terms of optimising materials handling processes and increasing productivity in order fulfi lment operations,” said Geoff Wheatley, director of SSI Schaefer in the Middle East and Africa.

Ehrhardt + Partner Solutions (EPS) has hailed its appearance at last month’s GITEX Technology Week a success, with a number of potential customers showing interest in the European company’s warehouse technology solutions. “GITEX provided an opportunity to present our entire product range to companies in Dubai,” commented Ramon Thoms, regional manager of EPS in the Middle East. “The live demonstrations of our warehouse management system, pick-by-voice software and RFID solutions had a particularly strong response from visitors of the exhibition.”

Materials Handling Middle East will return to Dubai on

a larger-scale in May 2011, following the show’s success this year, according to organiser Messe Frankfurt.

The bi-annual event, which attracted 175 exhibitors from 27 countries in May 2009, once had a monopoly in terms of logistics exhibitions in the Middle East. However, the launch of SITL Dubai and CeMAT Middle East has increased competition within the local market.

“It’s really encouraging that this year’s Materials Handling Middle East received such an optimistic response from various sectors in the region,” stated Mahmut Gazi Bilikozen, senior show manager of Messe Frankfurt. “The majority of exhibitors have already confi rmed their participation in the next exhibition and many want to increase their space requirements, ascertaining a much larger event in 2011.”

Exhibitors are already expressing nterest in Materials Handling Middle East 2011

A number of experts from the Middle East have been confi rmed

as keynote speakers for a forthcoming logistics seminar in Lebanon, organised by Supply Network Solutions (SNS).

The event - which takes place under the theme ‘Is Your Supply Chain Ready For The Economic Recovery?’ – will include presentations from Walid Daniel (managing director of SPAN Group), Marouane Rihoum (logistics manager of Chalhoub Group) and Sjoerd Koopman (Gulf customer service and distribution manager of Nestlé).

Andrew Kinder, director of supply chain solution marketing at INFOR, will also discuss ‘smart business moves’ in a recovering economy.

Major plans for Dubai logistics show

Mario Ghosn, general manager of SNS

Logistics experts confi rmed for SNS forum

EVENT

Exhibitors such as SSI Schaefer have already confi rmed their participation for next materials handling event

SSI Schaefer was amongst the fi rst companies to confi rm their participation in Materials Handling Middle East 2011.

“There is a proliferation of logistics events in Dubai, which dilutes the required impact,” said Geoff Wheatley, managing director of SSI Schaefer in

TECHNOLOGY

NEWS IN BRIEF

on Wednesday 9th December, please email Micheline Daaboul ([email protected]).

the Middle East and Africa. “Moreover, in such economic circumstances, it is extremely diffi cult to exhibit. Therefore, we are only planning to take part in Materials Handling Middle East in 2011, over other shows that are taking place in the region.”

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NEWS UPDATE

Guest list includes representatives from Agility, Emirates SkyCargo, DHL and Bahrain Polytechnic

recent seminar organised by the Chartered Institute of Logistics and Transport (CILT) has been hailed a success, with over 230 attendees from companies such as Emirates SkyCargo, Agility, DHL Express, Bahrain Polytechnic and Dubai Department of Economic

Development (DED).Th e event, which took place at Emirates Aviation College, was the

second networking session held by CILT’s United Arab Emirates branch this year and focused on the latest challenges that are aff ecting the logistics industry. Speakers included the association’s regional director Alex Borg and section president Mohammed Al Khaja, in addition to Ram Menen, Emirates SkyCargo divisional senior v i c e president, and Nigel Woodhead, programme manager of the Emirates Aviation College MBA in logistics and supply chain management.

A“CILT has recently benefi ted from a restructuring in the United

Arab Emirates and with our events, we want to send out a message that we’re back in town, stronger than ever and ready to serve our members and the wider logistics community,” stated Borg.

“We actually broke our attendance record with this latest seminar, which attracted more than 230 people from countries such as the United Arab Emirates, Oman, Qatar, Bahrain, Kuwait and Saudi Arabia. Some of our guests even travelled from Sudan and Nigeria,” he added.

Following the positive response, CILT has already started to plan a follow-up event, which is scheduled to take place in April 2010. “We will evaluate the feedback from the recent seminar and organise the next event accordingly,” said Borg. “It’s important to sustain this momentum and interact with the industry on relevant topics.”

CILT breaks record with Dubai logistics seminar

Alex Borg, CILT’s regional director

Mohammed Al Khaja, UAE president of CILT

David Harris (Dubai Department of Economic Development) and Nigel Woodhead (Emirates Aviation College)

17

NEWS UPDATE

www.arabiansupplychain.com | NOVEMBER 2009

delegates attended the recent CILT logistics seminar in Dubai

230+ Robeel Haq (Logistics Middle East) and Ram Menen (Emirates SkyCargo)

Gregory Olsen and Brent Ruru from

Agility and Mike Vosper from Workz

Alexander Borg and Cyril Bleasdale from CILT

Bhaskar Krishnan and Dirk van Door from DHL


EDITOR’S CHOICES

SPOT POLL

Will you be attending a logistics exhibition, seminar or conference in the next three months?

56%Yes, these are

educational and excellent for networking

Aramex has expanded its express delivery channels in the Middle East to include the recently-launched

Dubai Metro system. Th e logistics company, which reported a 24% increase in net profi ts for the fi rst nine

months of 2009, believes the Dubai Metro will complement its existing fl eet for express consignments, while

boosting the effi ciency of routes that are currently impacted by traffi c congestion in the emirate.

“At Aramex, we follow a very fl exible operational strategy, enabling us to make optimal use of both internal

and external resources to enhance the quality of our services,” said Hussain Hachem, Aramex chief executive

offi cer for the Gulf. “Employing the transport capacity off ered by the Dubai Metro also enables us to be more

environment-friendly and reduce our carbon footprint by a small amount. We look forward to expanding this

channel of express transport over the coming months.”

As part of the Dubai Metro-based express channel, more than fi ve Aramex courier representatives will

transport express consignments in special trolley bags that comply with Dubai Metro rules for baggage

transport, with each courier handling over 70 express shipments.

Aramex pilots deliveries with Dubai Metro

The online home of:Still hungry for more news?

for regular updates on the Middle East logistics industry

ONLINE INTERVIEW

Standing StrongAs Emirates Airline begins its 25th year of operations, chairman Sheikh Ahmed bin Saeed Al Maktoum tells ArabianSupplyChain.com about the challenges of the past year.

SPECIAL REPORT

Sharjah Freighter CrashTime for the industry to refl ect after a Sudanese cargo plane with six people on board crashes near Sharjah International Airport on its way to the city of Khartoum.

MOST TALKED ABOUT LOGISTICS COMPANIES ON ARABIANSUPPLYCHAIN.COM

Aramex

GAC Logistics

CILT (Chartered Institute of Logistics and Transport)

CEVA Logistics

Dubai Logistics City

MOST POPULAR HEADLINES

1 Emergency landing for cargo plane in Sharjah

2 Railways hailed as next opportunity for logistics

3 ADAC announces launch date for logistics park

4 GAC selected as partner for NYK logistics group

5 Air India pilots arrested over latest assault claims

WEBSITE STATISTICS

ONLINE HIGHLIGHTS

Maybe, it would depend if I found an event suitable

enough

No, I am not interested

for now 38% 6%

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COVER STORY

Uncovering the facts behind

the multi-million dollar launch

of Wared Logistics with chief

executive offi cer Brian McHale.

MAKING AN ENTRY

21

COVER STORY


espite the odds, a number of successful companies have been launched during a global recession. From technology giants such

as Microsoft and Hewlett Packard totelevision powerhouses such as CNN and MTV, each venture has succeeded by fi nding opportunity in a bleak market. Even members of the logistics fraternity can be included in this recession-proof elite, with FedEx and Deccan 360 showing how businesses have triumphed in the face of adversity.

Following this trend, Wared Logistics was launched earlier this year as Saudi Arabia’s latest entrant into the global 3PL sector. With an initial capital of US$32 million, the newcomer is a 50:50 joint venture between Construction Products Holding Company (CPC) and Zahid Holding Group - both well-established and respected entities in the Kingdom. And whilst a section of the market could question the timing of this launch, the project’s wheels were actually set in motion around four or fi ve years ago, when the Middle East economy was developing at breakneck speed.

Even so, Brian McHale, the recently appointed CEO of Wared Logistics, is confi dent about his company’s future and remains adamant that its development strategy will continue as planned. Given his track record at the likes of Menlo Worldwide Logistics, Ryder Integrated Logistics and NFI Industries, it seems this judgement

comes from an experienced hand. “Th e concept of Wared Logistics was formed after a detailed study into the global logistics market, with a particular focus on the Middle East and Saudi Arabia, where companies need a high level of expertise and professionalism to facilitate their business,” McHale states with conviction. “Th rough this research, Zahid and CPC received a snapshot of the region’s potential as a global warehousing and transportation hub, which in turn highlighted the scope of a venture such as Wared Logistics.”

Despite its global ambitions, the fact that Wared Logistics is based in Saudi

Arabia is actually considered a key strength by McHale, who believes the Kingdom is emerging as one of the most promising logistics markets in the world. Th e company has already developed a network of 12 distribution centres in cities such as Jeddah, Dammam, Medina, Jubail and

Qassim, with future plans for two 40,000m2 facilities in Riyadh and Jeddah.

“Th ere’s a lot of talk about Saudi Arabia at the moment, its blossoming,” he admits. “Of course, there are challenges in the form of red tape, but that’s actually an advantage for Wared Logistics, because our parent companies are Saudi businesses that have operated in this country for decades and employ over 40,000 people in the Gulf. We understand the rules and regulations and have access to tremendous shortcuts as a result. At the same time, we need to educate

the market about the benefi ts of outsourcing supply chain operations to a third party. Th ere’s a low uptake in terms of outsourcing at the moment, although the situation has shown signs of change and I’m confi dent that will continue in the future too, which will be particularly benefi cial to organic Saudi companies such as Wared.”

Launched as a holding company, Wared Logistics includes four separate entities - Wared Express, Wared International, Wared Transport and Wared Distribution - each with a diff erent focus on the wider logistics industry.

“We want to provide our solutions to a broad customer base in the Middle East and North Africa (MENA) region, including companies in the construction, industrial, retail and project sectors. Th erefore, each of our divisions will cater to a diff erent segment of the market,” continues McHale. “For example, Wared International is based in London and provides global trade management services, such as forwarding and customs brokerage, while Wared Express is based in Saudi Arabia and provides less-than-truckload (LTL) and express transport services.”

Th e latter was actually established following the acquisition of United Transport Corporation (UTC), which was previously owned by Wared’s parent company CPC. In a similar fashion, the Wared Transport division was created through the acquisition of Zahid Heanor, a specialist heavy-lift transportation company that was operated by Zahid Holding Group, the second parent company.

Th ese acquisitions have provided Wared Logistics with a solid foundation to kick-start its operations, including around 1000 employees, a fl eet of 500 heavy, medium

“We need to educate the

market about the benefi ts

of outsourced supply chains”

“We need to educate the

market aboutthe benefi ts f outsourced

supply chains”

United Transport Corporation (UTC) and Zahid Heanor have been acquired by Wared Logistics in the past year

Wared Logistics owns 12 warehouses in Saudi Arabia

D


COVER STORY

and light trucks, and a customer base of 85-95 companies from the construction, fast moving consumer goods (FMCG) and food distribution sectors. In addition, Wared Transport was able to capitalise on Zahid Heanor’s existing base in Syria, which has been developed to create a service portfolio of container drayage, full truckload and specialist heavy-lift transport.

Despite its infancy, the acquisition strategy has already received a strong response, with further contracts being awarded by Premco, United Arab Aluminium Company and Bahra Steel Company in recent months. “Th ese customer-wins have proved that this region needs a professional organisation that knows how to move heavy and oversized loads,” states McHale. “Th at professional organisation is Wared Transport and to accommodate current and future customer requirements, we are supplementing our Syria fl eet with 20 new tractors and 30 new trailers. Each tractor is equipped with the Telargo system for tracking and driver communications, while the trailers include low and extended fl atbeds of 18, 24 and 26 metres.”

Another of the new divisions to hit the ground running is Wared Distribution, which provides contract warehousing and inventory management

services for general commodities and temperature controlled products. Th e company recently announced a partnership to construct and manage refrigerated warehouses throughout the MENA region with Preferred Freezer Services (PFS). “PFS is a global provider

of cold storage warehouses and has the best designs and state-of-the-art systems in the market, which can be perfectly combined with Wared’s requisite support services, such as temperature controlled storage, transport and importation,” says McHale.

Construction plans have already been completed for the initial facilities, with the fi rst warehouse being earmarked within the Wared Logistics hub in Cairo, Egypt, while the second will be situated in close proximity to Jeddah Islamic Port in Saudi Arabia. A third is expected to follow in Abu Dhabi and there are long-term plans for nine additional centres throughout the MENA region. Further acquisitions will also be considered to encourage the company’s future growth in the MENA region. “We want to expand in Saudi Arabia, UAE and other Middle Eastern countries, followed by North Africa. Th e expansion plan includes, in the short term, the opening of branches in Abu Dhabi, Lebanon, Jordan and Algeria. Th e mid-term goal is to expand across the Arab countries to the far west, to South Africa, and eastward to

Asia,“ he concludes. “We’re looking at acquiring a small transport company in the UAE and although we’re leaning towards organic growth rather than acquisitions, if the right opportunity came along, we will certainly pursue it.”

COVER STORY

“We’re looking at acquiring a

small transport company in

the UAE”

“We’re looking at acquiring a

small transportompany in the UAE”

Company: Wared LogisticsCEO: Brian McHaleParent Companies: Construction Products Holding Company (CPC) and Zahid Holding GroupSubsidiaries: Wared Express, Wared International, Wared Transport and Wared Distribution Initial Capital: US$32 millionEmployees: 1000 peopleFleet: 500 heavy, medium and light trucks (plans to expand with 20 new tractors and 30 new trailers)Acquisitions: United Transport Corporation (UTC) and Zahid HeanorWarehouse Network: 12 facilities in Saudi Arabia, in addition to warehouses in Syria, Egypt, Lebanon and the United Arab Emirates

COMPANY PROFILE

Wared Transport has been awarded contracts from Premco, Bahra Steel and United Arab Aluminium Company

and light trucks, and a customer base of

seteThprM

of coldesig

Showcasing the continued resilience of the airfreight sector in the Middle East.

MIDDLE EAST AIRFREIGHT 2009


Showcasing the continued resilience of the airfreight sector in the Middle East.

SECTOR REPORT:


25



ucking an international slowdown in airfreight volumes, the Middle East has remained a solid performer for the aviation

industry in recent months and provided a welcome solace in the wake of a global recession. According to statistics from the International Air Transport Association (IATA), a 6.3% increase was registered in the region’s 2008 freight tonne kilometres (FTK) – the industry’s standard measurement for freight traffi c. In comparison, established markets such as Asia Pacifi c, Europe and North America registered a staggered decline of 6.6%, 2.8% and 1.9% respectively.

Several regional and global operators have contributed to this resilient growth in the Middle East, including market-leader Emirates SkyCargo, which transported 1.4 million tonnes of cargo in 2008, marking an increase of 9.8% compared to the previous year. Its revenue also climbed by 14.8% to US$2.1 billion, a contribution of approximately 19% to the total revenue of Emirates airline.

Dedicated cargo airlines also played an infl uential role in the market’s growth, with Abu Dhabi-based Maximus Air Cargo registering a recent 134% increase in revenue, making a staggering $110.8 million in 2008.

However, despite these impressive results, the global sector will continue to experience a series of challenges in the coming years, according to IATA, and the Middle East will need to join hands with its counterparts around the world to kickstart a recovery from the downturn. “We must look for opportunities that will build our future with a more effi cient industry, focused on meeting customer needs,” comments

Giovanni Bisignani, CEO and director general of IATA. “Customers want a good price and a great product, delivered with speed and reliability via the supply chain. And in crisis, customers will only get more demanding. To meet their expectations and build a solid future for the industry, change is required.”

Fortunately, embracing change has always been a favourite pastime of the Middle East and a number of ambitious developments are taking place to revolutionise the local airfreight sector. At the forefront of these plans is the Dubai World Central project, which is currently being constructed in the United Arab Emirates and includes the mammoth Al Maktoum International Airport – reported to be the biggest aviation hub in the world, with a capacity for 12 million

tonnes of cargo and 160 million passengers a year. Th e construction of 16 cargo terminals has already been completed and the airport is scheduled to commence its fi rst phase of operations in June 2010.

Countries such as Saudi Arabia, Oman, Bahrain and Kuwait have also invested billions of dollars for the development of their airport infrastructure, with the bulk of projects coming on line within the next fi ve years. “Th e Middle East region is one of the most dynamic aviation markets in the entire world,” reasons Bisignani.

“Gulf countries also have a signifi cant advantage with their modern, effi cient fl eet and world-class airport infrastructure, which should continue to serve them well in the coming years,” he concludes.

Giovanni Bisignani, IATA’s director general, believes recent infrastructure investments will benefi t the Middle East

Bucking anslowdownvolumes, thas remaiperformer

industry in recent montha welcome solace in the wrecession. According to stInternational Air Transpo(IATA), a 6.3% increase wregion’s 2008 freight tonn– the industry’s standard freight traffi c. In comparimarkets such as Asia PacNorth America registereddecline of 6.6%, 2.8% and

Several regional and glohave contributed to this rthe Middle East, includinEmirates SkyCargo, whichmillion tonnes of cargo inan increase of 9.8% compprevious year. Its revenue14.8% to US$2.1 billion, a approximately 19% to theof Emirates airline.

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CHAMPION’S LEAGUE: HOW MUCH CARGO HAVE MIDDLE EAST AIRPORTS HANDLED DURING THE FIRST HALF OF 2009?

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

How much importance does Emirates place on its airfreight operations?Cargo revenue contributed 19% to the airline’s total transport revenue, which is one of the highest of any airline with a similar fl eet makeup. In the 2008-09 fi nancial years, Emirates SkyCargo carried 1.4 million tonnes of cargo, an improvement of 9.8%, which helped revenue to reach US$2.1 billion.

How strong in the airfreight market in the Middle East at the moment? The Middle East economies have remained quite buoyant during the global recession, thanks to the sustained high oil prices of 2007/08. We have increased our regional frequencies this year to cope with demand. What are your future predictions forthe Middle East airfreight market?The worst seems to be over and 2010 results should be positive on 2009. There is currently suffi cient demand in relation to the capacity deployed in the region. Emirates SkyCargo’s volumes are holding up and if stability continues through the last two quarters of this fi nancial year, we are on track to exceed last year’s fi gure.

PROFILE: SAUDI ARABIAN AIRLINES CARGOSaudi Arabian Airlines privatised its cargo operations earlier this year and, now an independent entity, the division has been renamed Saudi Airlines Cargo Company. With three hubs in Riyadh, Jeddah and Dammam, the company operates a fl eet of MD-11 and 747 freighters to various destinations in Asia, Africa, Europe and the United States. It will also

continue to use capacity on the scheduled passenger fl ights of Saudi Arabian Airlines.

“Our strategy includes expanding the network regionally and globally, exploring new markets, along with restructuring and developing our IT systems,” comments Fahad Hammad, chief executive offi cer of Saudi Airlines Cargo Company.

Over the past fi ve years, Saudi Arabian Airlines has experienced 5% average growth in airfreight volumes and its revenues exceeded US$560 million in 2008. Hammad believes the privatisation

could lead to a series of new commercial alliances with other players in the market. “We are confi dent that Saudi Airlines Cargo Company will continue to increase its freight volumes, maintain its leading role in air cargo with the Middle East and overcome the many challenges that have been presented by current global economic uncertainties,” he concludes.

PROFILE: SAUAIRLINES CARSaudi Arabian Aioperations earlieindependent enrenamed SaudiWith three hubDammam, theof MD-11 anddestinations iand the Unite

continue to use passenger fl ights

“Our strategy inetwork regionallnew markets, alodeveloping our ITFahad Hammad, of Saudi Airlines

Over the past fiAirlines has expegrowth in airfreigrevenues exceede2008 H d

MIDDLE EAST

AIRFREIGHT 2009

Interviews and profi les of

leading players from the

regional market

PROFILE: MAXIMUS AIR CARGOEstablished in 2005, Maximus Air Cargo has emerged as one of the biggest success stories in the Middle East airfreight sector.

As part of Abu Dhabi Aviation Group, the company has a specialist focus on outsized cargo and wet leasing aircraft, with a varied fl eet of eight aircraft. It’s nickname as the ‘heavy-lifter of the airfreight world’ came after Maximus more than doubled its turnover during 2008 – reaching US$110.8 million compared to $47.3 million the year before. The airline is now on target to hit sales of $130 million in 2009, according to president and chief executive Fathi Hilal Buhazza.

“We achieved exceptional growth during 2008 and the upward trend has been even steeper in 2009 as we secured additional short and medium term aircraft wetlease contracts,” he explains. “Our market share is growing consistently – from government and commercial customers – partly due to increased capacity, but mainly because of providing responsive, practical and cost effective solutions that combine a personal approach with innovative service.”

As a guest speaker at the recent Freighters’ World Conference in Spain, Buhazza highlighted the company’s success and told delegates that the Middle East would be amongst the fi rst regions to recover from the global slowdown due to its multitude of natural advantages.

“This region has clear benefi ts over others to reach European, Asian and African markets. Added to this, we also expect freight traffi c to triple over the next twenty years. All these advantages, combined with a sound business model, mean that Maximus Air Cargo is confi dent and optimistic,” he concludes.

“In just four years we have achieved so much, and despite the continued global downturn, the future looks bright.”

27



PROFILE: OMAN AIR CARGODespite being a veteran in the aviation industry, Oman Air is experiencing a period of massive transformation, with a signifi cant amount of investment being pumped into its cargo division, which is operated by Oman Aviation Services from the company’s headquarters in Seeb International Airport.

“We aim to provide a high standard of service in terms of cargo, combining our expertise in airfreight management with state-of-the-art equipment and facilities, including an automated cargo handling system,” explains Sami Abu El-Fetouh, manager, Oman Air Cargo. “We can offer everything from 24-hour operations for the import and export of cargo, specialised storage facilities for dangerous and hazardous cargo, in addition to products requiring cold storage or freezer storage. We also offer high level security, including an x-raying process under the strict supervision of Royal Oman Police Airport Security.”

At present, Oman Air offers a number of fl ights to regional destinations, covering the United Arab Emirates, Qatar, Lebanon, Jordan, Kuwait and Egypt. Outside of the Middle East, it has established the Indian

subcontinent as a major market, with regular fl ights to Mumbai, Chennai, Trivandrum, Madras, Hyderabad, Delhi and Cochin. “The subcontinent is very important for Oman Air, in terms of both passengers and airfreight. We’ve already established considerable operations in India and the country’s cargo market is really fl ourishing at the moment. As a result, we have introduced a number of subcontinent routes, such as Chittagong in Bangladesh and Jaipur in India.”

PROFILE: MIDEX AIRLINESMarketed as the fi rst cargo-exclusive airline in the United Arab Emirates, Midex started operations in 2008, with cargo destinations such as India, Bangladesh, Turkey, Lebanon and France. Even with a global recession, the company’s director general Jassim Al Bastaki says operations have continued to develop at a record pace and there are plans to further increase its aircraft fl eet and cargo handling facilities at Al Ain International Airport, as well as introduce new locations into its global network. “Airfreight fi rms working in the UAE are still maintaining strong levels of growth, and the global airfreight sector will be among the fi rst industries to recover once the world economy takes a turn for the better,” he says.



QATAR AIRWAYS CARGOAs one of the fastest growing airlines in the world, Qatar Airways has invested a considerable amount of money to develop its cargo operations. The Doha-based airline is currently delivering to 87 destinations around the world using its Airbus A300-600 freighters, in addition to a fl eet of 68 passenger aircraft. However, with major plans for expansion, it predicts an increase to 110 aircraft and 120 destinations in the next four years. Investments are also being ploughed into technology upgrades and Qatar Airways recently became a regional associate member of IATA’s Cargo 2000 programme. “Our goal is to increase the effi ciency and quality of service provided to the airline’s customers with proven and agreed processes,” comments Akbar Al Baker, CEO of Qatar Airways.

How important is the airfreight side of business to Royal Jordanian?Cargo is certainly an important factor to improve the profi tability of our passenger fl ights, while cargo charters help us to leverage the freighter operation. RJ Cargo’s handling facility is the main gateway for the majority of airfreight movements coming to Jordan and we will keep investing in providing world-class services like e-freight.

In general, how strong in the airfreight market in the Middle East at the moment?The regional markets are relatively resilient. However, we do not see similar growth rates like in previous years. Iraq remains the exception, where the efforts to re-build the country have triggered signifi cant demand for both charters and scheduled services. RJ has been the network leader to Iraq for many years, operating scheduled fl ights to Baghdad, Basra, Erbil and Suleymania. Other destinations are also under study.

What types of shipments are normally transported by Royal Jordanian Cargo?Major exports from Jordan are vegetables and pharmaceuticals. Otherwise we move everything from automobiles to zoo animals.

What makes your airfreight operations different from competitors in the region? RJ has traditionally been a technology leader in the Levant area. Therefore we introduced

a best-in-class cargo information system supplied by CHAMP Cargo Systems this year. We are also working closely with IATA to join the e-freight initiative in Jordan by early 2011. The technical infrastructure is available with forwarders and RJ, however, some legislative issues are holding us back to become “early adopters” in 2010.

What are your future predictions for the Middle East airfreight market?The Middle East will certainly remain a buoyant market and achieve growth rates that are above world-average. A strong recovery of the sizeable economy in Iraq will be a major boost to this, as well as further liberalisation in the region.

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

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

How has Etihad Crystal Cargo fared during the recent economic crisis?Etihad Crystal Cargo experienced an increase in our cargo volumes during the fi rst six months of 2009, when we transported 130,000 shipments, witha volume of more than 100,000 tonnes.

What forecasts have been made for Etihad’s cargo operations in 2010?Despite the challenges of the economic downturn, we have continued to expand our fl eet and increase our connectivity around the world, which will support thegrowth of our cargo operations. Our product range has steadily expanded too, with the recent launch of Xpress2D, an express to door delivery service to Europe and North America.

How large is Etihad’s aircraft fl eet?Currently Etihad Airways operates 18 wide-bodied aircraft, including a number of brand new Boeing 777-300ER, Airbus A330-200 and Airbus A340-500, all of which carry cargo in the bellyhold of the aircraft. In addition Etihad Crystal Cargo operates one MD11, which can transport a maximum of 88 tonnes, and two Airbus A300-600s with a payload of 42 tonnes.

Which routes are currently being covered by Etihad Crystal Cargo?Etihad Airways serves more than 40 destinations around the world. Additional cargo destinations and global charter fl ights are served by a growing fl eet of regional freighter aircraft. Currently, all-cargo-services are provided to Chennai, Frankfurt, Khartoum, Kolkata, Milan, Mumbai, New Delhi and Zheng Zhou.

CHEMICALREACTIONExploring the hidden potential of petrochemical logistics in the Middle East region.

ith growing saturation in the Middle East logistics industry, a number of service providers have experienced success by venturing into

niche segments of the market. Whether its Kuehne + Nagel with hospitality logistics, Freights Systems with artwork logistics or GAC with event logistics - each player has reported a favourable response to their

specialist solutions.Following this trend, the

petrochemical sector has been

Whighlighted by Booz and Company as a future ‘cash cow’ for logistics companies in the region, especially with a recovery from the global recession in sight. According to the research fi rm - which published its ‘Not Too Late Finding Opportunities in Middle East Logistics’ report in June 2009 - a number of recent indicators have supported the growth forecast for petrochemical logistics, including a multi-billion dollar spend on downstream developments in Saudi Arabia, Qatar and the United Arab Emirates.

“Th e aspiration of oil-rich countries to develop their

PETROCHEMICAL LOGISTICS


investment by Octal Petrochemicals to develop

a liquid chemicals terminal in the port

of Salalah

US$50 MILLION

downstream industries will drive a huge amount of investment into refi nery capacity and petrochemical plants in the Middle East,” states Fadi Majdalani, partner at Booz and Company. “Additionally, the products must be transported to major consumption markets around the world, such as Asia, Europe and the United States, which means that logistics companies with global distribution networks and expertise in the handling of petrochemical products will be best-served for this attractive market.”

It seems the global recession has fuelled a migration process towards outsourced supply chains for the petrochemical sector, with companies under pressure to increase their effi ciencies while reducing their operating costs. Oman-based Octal Petrochemicals, which is investing US$50 million to develop a liquid chemicals terminal in the port of Salalah, is amongst

the industry leaders that have championed the concept of third party logistics (3PL). However, its logistics manager George Freiji believes that the long-term benefi ts will only be realised when 3PL fi rms are better-integrated with their petrochemical clients.

“Petrochemical producers are very concerned about their logistics operations as the losses in terms of failed product delivery are potentially huge,” he stresses. “We are competing with local companies in the US or Europe and must provide a consistent service. To achieve this, it’s important to have a strong relationship with our logistics partners and integrate the various business processes with them, covering everything from storage and transportation to fi nal delivery.”

According to Freiji, communication is essential in developing an effi cient partnership between the petrochemical and logistics industries. Th is point has already been taken into consideration by the Gulf Petrochemical & Chemicals Association (GPCA), which

has established a supply chain committee with 13 members from both sides of the table, including Al Majdouie de Rijke Logistics, SABIC, Vopak, Reliance Industries and United Arab Shipping Company (UASC). Th e group hosted its fi rst annual forum in Bahrain last month, under the theme “Current Trends and Preparing for Future Growth”, with issues such as transportation safety, logistics outsourcing and infrastructure restrictions being placed under the spotlight by over 200 delegates.

“Th is committee has been established to fuel the improvement of supply chain operations for chemical and petrochemical companies in the GCC,” explains Dr Abdulaziz S. Al-Bati, chairman of GPCA supply chain committee. “Compiling, sharing and exchanging resources, knowledge, opinions and experience is on top of a development plan that the committee has prepared for 2010 onwards. We welcome membership


www.arabiansupplychain.com | NOVEMBER 2009 31

“Petrochemical producers have

logistics concerns because losses are huge if products are

not delivered”

“Petrochemical producers have

logistics concerns cause losses are ge if products arenot delivered”


from diff erent elements of the supply chain to serve members with a variety of data, technical assistance and resources in support of the regional petrochemical and chemical supply chain.”

Another member of the GPCA supply chain committee is Damco (formerly Maersk Logistics), which emerged as one of the fi rst players to concentrate on petrochemical logistics in the Middle East. Th e company hit a milestone earlier this year after concluding a research study with Abu Dhabi Basic Industries Corporation (ADBIC) to explore the feasibility of providing tenants at Abu Dhabi Polymers Park with supply chain services to reduce their inventory levels, lead-times, visibility and operating costs.

“Th e logistics industry is currently suff ering from an overall slowdown, which is prevalent in the Middle East and throughout the world. However, in the long-term, there is a great deal of potential in the petrochemical sector,” states Justyna Janik, project manager at Damco.

“We understand that petrochemical producers have traditionally insourced their logistics in the Middle East, which means the operational processes tend to be customised to the requirements of plants and factories. As a result, the process of outsourcing requires tailored solutions and adequate change management. Damco is providing this through our consultancy capabilities, which includes concept studies, feasibilities studies and project management

consultancy (PMC) to ensure the transition fulfi ls the operational requirements.”

Of course, Damco is not alone with its plans to conquer the market for petrochemical logistics. In the past year alone, TALKE Logistics has commissioned a petrochemical logistics centre in Saudi Arabia, Swift Freight has launched 3PL services for petrochemical fi rms in partnership with Hexomatrixx, and Agility has secured a fi ve-year contract to handle the regional land distribution operations for Equate Petrochemical Company.

A relative newcomer to the list, Momentum Logistics is also planning a major push into the market over the coming years. “One of the key issues for petrochemical companies is the importance of observing and maintaining the highest


Justyna Janik, project manager at Damco, explains why the company partnered with Abu Dhabi Basic Industries Corporation (ADBIC) to research opportunities in the petrochemical logistics sector.

Can you provide details on the recent study conducted by Damco and ADBIC?The research explored the feasibility to opening a logistics centre at Abu Dhabi

Polymers Park, which would offer services that are tailored to the requirements of tenants, such as polymer storage and handling, fi nished goods storage, distribution and freight forwarding.

What benefi ts are expected for tenants?The tenants would benefi t from lower overall logistics costs, as well as lean and sophisticated supply chains, resulting in higher service levels. Our study showed this would translate into a competitive advantage, enabling the tenants to service international markets and compete with longer-established global players.

What is the cost saving to customers?The end-cost to tenants will depend on the service, volume and scope, but a net saving of 12% is expected on total logistics spend, as compared to current market levels.

What are the main challenges that you faced whilst evaluating the study?The key challenge was forecasting the future volume and product mix of the polymer park. Early mover tenants established the basis for the study. However, there are still unconfi rmed tenants for which volume and product forecasts were used.

What specialist services or skills will the petrochemical sector demand?Apart from bulk handling requirements, not much. Petrochemical producers in this region have traditionally in-sourced logistics, which means the operational processes tend to be customised to the requirements of the plants and factories. The process of outsourcing will therefore requires tailored solutions and adequate change management.

CASE STUDY

health and safety standards, as the majority of petrochemical products are fl ammable and represent big risks for personnel,” says Matthew Derrick, general manager of Momentum Logistics, whose parent company Gulftainer recently secured a contract to provide on-site logistics services at Borouge’s polyolefi n plant in Abu Dhabi.

“However, on the whole, petrochemical logistics is much the same as the logistics of companies in other industries, with a focus on supply chain management, storage and transportation of products and freight forwarding. Th e main aim, as always, is to provide the best possible service at the best possible price, and our logistics solutions can make a big diff erence in a company’s operational expenditure.”

The petrochemical sector has proved attractive for the likes of Damco, Momentum Logistics and Swift Freight

Justyna Janik project manager at Damco

WT

CASE STUDY

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

the world’s largest port development. Positioned just

outside the Strait of Hormuz and offering easy access to

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

operated by world leaders.

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

a liquid bulk terminal operated by Oiltanking Odfjell, and

Oman International Container Terminal (OICT) operated

by Hutchison Port Holdings.

With an infrastructure expanding at a rate of knots, Port

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

excellence. Which is why so many are making it their

preferred port of call.

To find out more visit www.portofsohar.com

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


SHOW REPORT: SITL DUBAI 2009

Following its success in other parts of the world, SITL made its much-awaited debut in the Middle East this month. So did the exhibition and conference meet expectations from the logistics industry?

SITL DUBAI 2009

rom its humble beginnings as a trade exhibition for the European logistics industry, SITL has emerged as a global phenomenon, with associated

shows being held in Asia, Central America and most recently, the Middle East.

Following its debut in Dubai earlier this month, SITL has been hailed a grand success by organiser Reed Exhibitions, with participation from around 5000 visitors and 80 exhibitors in total, including the likes of Al-Futtaim Logistics, DP World, Agility and Jebel Ali Free Zone Authority (Jafza).

“With a history spanning over 25 years in Europe, SITL is recognised as a leading international show for the logistics sector,” comments Mohamad Bader-Eddin, show director of SITL Dubai. “Th erefore, when the Dubai government expressed its interest in launching a global exhibition for transport and logistics in the emirate, we were selected from a list of several big companies to manage the project.”

Under the patronage of His Highness Sheikh Ahmed Bin Saeed Al Maktoum,

the exhibition was extended over 7700m2 at Dubai International Convention and Exhibition Centre, split into four sections: transport and logistics services, logistics infrastructure, logistics real estate, and logistics systems and technology.

In addition, an extensive range of conferences and related events were included in the programme, including a global shippers forum, business and investment forum, and hosted buyer programme, which brought together numerous global decision markers from the transport and logistics sector.

“With a growing number of logistics events taking place in the Middle East, it was essential to create a unique proposition for the industry,” continues Bader-Eddin. “A lot of eff ort went into the programme and I can confi dently state that SITL was not your average show. We utilised our rich heritage from other parts of the world to produce a complete package for visitors, whether it was the exhibition or conference.”

SITL Dubai targeted an audience that was broadly similar to events such as Materials

F2 Handling Middle East, CeMAT

Middle East and International Freight Week, which could have been a reason for concern, with the latter being cancelled by organiser IIR Middle East earlier this year following a limited response from the market. However, Bader-Eddin has always been confi dent that the timing was perfect for SITL to make its foray into the region and develop a long-term position in the local market.

“Logistics has played an essential role in the Middle East’s economic growth and its importance has been growing on a steady basis throughout the region. Starting with the United Arab Emirates and more recently with countries such as Saudi Arabia, Bahrain and Jordan, it’s amazing to look at the developments that are taking place,” he states. “Could people really aff ord not to be part of this revolution? It’s the industry’s time right now, and everyone needs to prepare themselves for what’s coming next. Hopefully, visitors and exhibitors found that SITL Dubai was a perfect launch pad to showcase their ambitions.”



EVENT HIGHLIGHT

BOARD NAMED FOR DUBAI LOGISTICS CORRIDORSenior representatives from Economic Zones World (EZW) and Dubai Aviation City Corporation (DACC) appeared at SITL Dubai to announce a committee that would overlook their proposed Dubai Logistics Corridor initiative, with members including His Highness Sheikh Ahmed Bin Saeed Al Maktoum (chairman of DACC), His Excellency Sultan Ahmed Bin Sulayem (chairman of EZW’s parent company Dubai World), Salma Hareb (CEO of EZW) and Rashed Buqara’a (COO of DACC). “Today we have covered an important milestone in developing the Dubai Logistics Corridor,” says Bin Sulayem. “With the proven capability of its members, the board will provide the right momentum for the whole process.”

RD NAMED FOR DUBAI

EVENT HIGHLIGHT

A veteran in the Middle East logistics industry, Modern Freight Company (MFC) exhibited at SITL Dubai to showcase its portfolio of warehousing and transportation services, with a focus on increasing its brand presence in the region. “We’ve noticed a lot of international logistics companies have taken part in SITL Dubai this year and it’s a pleasant feeling to be amongst

an elite group of homegrown exhibitors,” says Ali Mohammed Saleh, analyst and marketing manager of MFC. “We’ve been here for over 30 years and understand the local market. Even when times are down for the industry, we are showcasing our resilience by exhibiting at these types of events.”

A senior delegation from the Port of Sohar took part in SITL Dubai to highlight the latest developments at Oman’s bustling shipping hub, which has continued to report an increase in shipping volumes, even despite the global recession. “We’ve established ourselves as a world-class centre for maritime

activities, supported by a developing free zone, so

its time to spread the word,” explains Edwin Lammers, executive commercial manager, Port of Sohar. “We have a number of

advantages over other free zones in the Middle

East, such as our location and the competitive terms

that we can provide companies. The response has been reallypositive from visitors of SITL Dubai and we look forward to building relationships with the contacts that were made.”PORT OF SOHAR

MODERN FREIGHT COMPANY (MFC)

GLOBAL SHIPPERS FORUMReed Exhibitions hosted its fi rst Global Shippers Forum as a central component in the SITL Dubai conference programme. Various topics were addressed, under the common theme of ‘Finding Local Options for Global Freight Solutions’, with speakers including Dick van den Broek Humphreij (European Shippers Council), Ram Menon (Emirates SkyCargo), Dirk Van Den Bosch (DP World) and Antony Bennan (Danzas).

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EVENT HIGHLIGHT

HOSTED BUYER PROGRAMMEReed Exhibitions supported its inaugural SITL Dubai event with a hosted buyer programme, which served as a platform for exhibitors to conduct their business transactions with potential buyers from around the world. To qualify for the programme, companies such as shippers and freight forwarders had to meet a range of criteria, including an existing record of business operations in the Middle East or concrete plans to invest in the region. Once registered, they received a generous string on benefi ts, such as fl ights to and from Dubai with fi ve-star accommodation and a dedicated facility for scheduled appointments with pre-matched exhibitors. A visitor relations manager was also appointed to ensure the programme was conducted in a smooth and effective manner. “The hosted buyer programme provided an opportunity for direct interaction between buyers and exhibitors in the logistics industry” says Mohamad Bader-Eddin, show director of SITL Dubai.

Logfret was amongst a number of exhibitors to make announcements at SITL Dubai, with news that the company had been contracted to provide a range of logistics support to the Al Sufouh Transit System Tranway project, better known as Dubai Tram. The large-scale project, which is expected to commence operations in 2011, will include 11 tramways, a 10km track and 13 stations during its fi rst phase. “We’re very proud

to make this major announcement at SITL Dubai,” explains Bahaa Hage, marketing and communication manager of Logfret. “We were awarded the contract by Besix, one of the main contractors of the project, for the transportation of the tramway viaduct segments from the pre-cast yard near Dubai Outlet Mall to the viaduct erection sites along the Dubai Marina, all adjacent to Sheikh Zayed Road.”

Despite a downturn in the global economy, Agility has continued to develop its presence around the world, including its home market in the Middle East. As a result, SITL Dubai 2009 was deemed a perfect opportunity to showcase its achievements and allowed senior representatives from the fi rm to network with colleagues from the logistics sector and discuss opportunities for the future. “This has been a turbulent year across global industries, and the transport and logistics sector has not

been immune,” says Elias Monem, CEO of Agility in the Middle East and Africa. “Therefore, when an exhibition as prestigious as SITL hosts its inaugural exhibition in Dubai, we took the decision to showcase ourselves to the regional and international public. Furthermore, we wanted to show how the Agility team has differentiated our services and product offerings in this region, while positioning the company to best serve the logistics requirements of customers across the Middle East and Africa.”

AGILITY


LOGFRET

Wared Logistics, a joint venture set up last year between Zahid Holding Group and Construction Products Holding Company (CPHC), appeared at SITL Dubai to promote its recent launch of supply chain and transportation operations in the Middle East and North Africa region. “Wared provides the ultimate logistical solutions to serve its customers in the Middle East and North Africa region,” states Brian McHale, CEO of Wared Logistics. “With our team fl ying from Saudi Arabia to Dubai especially for SITL Dubai, it was a great opportunity to meet with potential customers and others from the industry. We received a number of promising leads as a result.”

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A prominent force in the Middle East logistics industry, DP World was amongst the largest exhibitors at SITL Dubai 2009. “As the leading port and terminal operator in the region, we were glad to support a forum such as SITL Dubai,” comments Zahir Asger, marketing executive at DP World’s commercial department. “This platform brought shippers together with supply chain managers, while offering an ideal opportunity to showcase our core and ancillary services. Additionally, we were keen to promote Jebel Ali as a hub and encourage shippers to take advantage of the project’s effi ciencies and expanding infrastructure.”

As a global player in the logistics industry, DB Schenker has developed a long-standing relationship with SITL from other parts of the world. As a result, the company was amongst the fi rst to confi rm its participation in the Dubai show. “Since this was the fi rst time that SITL took place in the Middle East and the fact that DB Schenker’s regional offi ce was established in 2007, it made sense to showcase our capabilities in this important market,” explains Sandeep Sahae, general manager of sales and marketing at Schenker LLC. “We focused on our core capabilities in ocean freight and airfreight, both globally and in the Middle East. In addition, this event provided an opportunity to network with others in the industry and we enjoyed the process of meeting with present and future clients.”

What is Al-Futtaim Logistics? The company was established in the 1980s and has become a regional provider of world-class supply chain solutions, such as warehousing, transportation, distribution, customs clearance and after-sales logistics. Although we’re based in Dubai, we have a truly global reach, which has been achieved through strategic alliances with partners across the world.

Which markets are specifi cally targeted by the company?Our logistics services are applied in a variety of sectors, such as automotive, retail, fast moving consumer goods (FMCG), electronics, construction, humanitarian aid and hospitality.

What prompted your decision to exhibit at SITL Dubai 2009?This was a great opportunity to promote our services and expand our market share in the transport and logistics industry. In addition to meeting with prospective clients and generating new leads, we also networked with others

from the industry and discussed topics that are prevalent in the Middle East.

What were the objectives of your participation in this event?Al-Futtaim Logistics wanted to highlight its services through a variety of posters, visuals and a continuous video presentation, while our company brochure was also available onsite for customers that were looking for further information on our service portfolio. In addition, two semi-enclosed and comfortable meeting rooms were available, where specialists from Al-Futtaim Logistics met with visitors to discuss their requirements.

Why do you feel an event like SITL Dubai 2009 was important to the Middle East logistics industry?SITL not only provided a great opportunity to promote our services and meet new clients, but it also provided information about the latest trends in the logistics market, enabling companies to evaluate the industry and strengthen their market position.

INTERVIEW WITH TOM NAUWELAERTS, AL-FUTTAIM LOGISTICS

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Linde Forklifts.The Art of Hydrostatic Transmission.

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TOP 10 FORKLIFTS

Logistics Middle East scours the material handling market to profi le ten of the latest forklift trucks that have been launched for regional warehousing operations.

42

TOP 10 FORKLIFT TRUCKS

TOP 10 Logistics Middle East scours the material handling market to profi le ten of thet

FORKLIFT TRUCKS

NOVEMBER 2009 | www.arabiansupplychain.com



CAT LIFT TRUCK

A marketing campaign has been launched for Linde’s H30D forklift truck, which focuses on a number of benefi ts for warehouse operators, such as low fuel consumption, low maintenance costs and low emission levels. Boasting a capacity of three tones, the vehicle is equipped with a Deutz diesel engine, twin drive pedal system, fi nger-tip load control and Linde’s innovative hydrostatic transmission, making it suitable for heavy duty applications with minimum service requirements.WEB: http://www.linde-mh.comTEL: +9714 2135100

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THREE TONNES maximum load capacity for Linde’s recently-launched H30D forklift

Yale has supported its product development programme with the launch of its VL electric forklift range, which the manufacturer claims is the most energy effi cient, ergonomically advanced and productive series of counterbalance trucks in the 2200kg to 3500kg capacity market. With a compact design and super-cushion tyres, the new VL is designed to off er a performance normally associated with diesel and LPG forklifts, but without the indoor application restrictions that are often associated with engine powered trucks. WEB: http://www.yale-me.comTEL: +44 1252 770700

YALE

atcks.

ZERO emissions with Yale’s latest VL series of electric counterbalance forklifts

Th ere are seven models available in Mitsubishi’s FBC15-30N series of forklift trucks, with load capacities starting at 1.5 tonnes and extending to 2.0 tonnes. Each of the vehicles have been designed

to match the solid performance of a diesel forklift, while utilising the usual benefi ts

of AC power, including smooth, quiet and emission-free operations. What’s more, the

effi ciency of the AC motors, combined with regenerative braking and energy-saving cushion tyres, means the FCB15-20N series can be operated for longer periods without the need for a recharge. Customers can also purchase a number of optional extras to support the forklift’s standard features, such as strobe lighting, seat-operated parking brakes and lateral battery slides.WEB: http://www.mitforklift.comTEL: +9712 5545900

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Crown’s latest stockpicker, the TSP6000, has been equipped with a triple-stage mast, allowing operators to reach a greater height in the warehouse. In addition, the truck can be collapsed and made shorter than standard options, which is meant to improve operations and storage. Also included is a ‘move control’ seat that is designed to improve the comfort of users, while the multi-task control handles can be used to blend functions such as travel, lift, pivot and raise. Th e manufacturer, which is the sixth largest forklift company in the world, claims the vehicle can travel 25% faster and lift 40% faster than its competitors. WEB: http://www.crown.comTEL: +971 4 3961000

CROWN

COMBILIFTTh e latest counterbalance forklift from Irish manufacturer

Combilift has been designed as a compact and multi-directional alternative to existing models in the material handling

market. Th e product, which was recently launched to commemorate the 10th anniversary of Combilift,

features a maximum lift height of 7.5 metres and a load capacity of 2500kg. In addition, since the Combi-CB is manufactured without a platform, companies can optimise their warehouse capacity by stacking their products from the fl oor up,

therefore enabling 100% use of lower storage areas.WEB: http://www.combilift.com

TEL: +353 4780500

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With constant developments in the material handling world, Om is the latest forklift manufacturer to revamp its product range with the XD/G15-20 series of counterbalance trucks. Th e company has selected a compact design for the forklifts, with load capacities ranging from 1.5 tonnes to 3 tonnes. Compared to previous models, improvements have been made in comfort, productivity, operating costs and pollution levels. For example, the operator’s cabin has been suspended on rubber blocks to absorb vibrations, while an acoustic insulation system helps to reduce the level of noise. WEB: http://www.om-mh.comTEL: +39 937 65525



A new generation of Bendi electric forklifts has been released by Landoll Corporation to meet the demands of tough warehouse conditions. Th e four new models have been revamped to increase productivity and improve energy effi ciency to reduce operating costs and raise throughput. An AC drive system is now standard on these forklifts and drivers can enjoy superior control, integrated breaking ability and smoother driving. Th e B30AC, B40AC, B45AC and B45AC-HL models can hold from 1350 to 2000 kilograms.WEB: http://www.landoll.comTEL: +1 314 02901600

LANDOLL

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CAT LIFT TRUCKCat Lift Truck has equipped its latest series of diesel lift trucks with a variety of new features, which are designed to boost the material handling process for customers in the Middle East. Available in six diff erent capacities, ranging from 1.5 tonnes to 3.5 tonnes, the vehicles include a rugged diesel engine that benefi ts from swift acceleration, low noise and reliable performance in warehouse facilities. Safety is also advanced by a seat switch to ensure the operator is correctly seated before allowing access to the truck’s hydraulic functions, preventing the risk of damage or accidents.WEB: http://www.cat-lift.comTEL: +971 6 5433555

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Cat Lift Truck is represented

by Mohamed

Abdulrahman Al-Bahar

in Bahrain, Kuwait,

Qatar, UAE and Oman

Th e latest series of reach trucks from Toyota is equipped with a modern AC hydraulic system, which aims to boost productivity in the warehouse by handling a larger number of pallets per hour and responding faster to operator commands. In addition, the 8-Series has achieved a 17% increase in travel times compared to previous models, making it suitable for warehouses with a fast turnover of products. To ensure the motors stay within normal operating temperatures, the trucks also feature a thermal protection cooling system, which introduces cooler air to the motor compartment, while ventilating warmer air through compartment openings.WEB: http://www.toyota8series.comTEL: +971 4 2066199

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8-Series compared

to previous models

Jungheinrich has launched its ETV Q20/25 range of multi-directional reach trucks, which are particularly useful for companies with narrow aisles that need to transport long loads to high-lift heights. Th e forklifts have been equipped with electric all-wheel steering, with the capability of transporting loads with a maximum length of 8 metres, while the steering can also be changed from 180° to 360° to provide a choice between minimum turning radius and fast travel direction change. Finally, the onboard computer combines a number of functions in one operating display, including multi-occupied function keys and a colour display that provides the operator with full control of travel modes or performance parameters.WEB: www.jungheinrich.comTEL: +971 4 2895111

JUNGHEINRICH

to 360°

THREE phase AC technology with the ETV Q20-25 range for travelling, lifting and steering


ASK THE EXPERT

THE EMERGENCE OF SELF STORAGE IN MIDDLE EASTERN COUNTRIESDespite being well-established in regions such as North America and Europe, the concept of self storage is relatively new in the Middle East and a limited number of options are available to customers with an interest in this type of storage. However, its popularity is constantly increasing, especially in the United Arab Emirates, where Storall has emerged as a regional pioneer of self storage, allowing companies and individuals to lease climate-controlled units of diff erent sizes for varying durations.

TYPICAL ITEMS FOR SELF STORAGEA diverse range of items are stored in self storage facilities, from clothes and luggage to books and furniture. If the facility is operated by a multi-storage organisation, clients can also be provided with industrial warehouse space, supported by a top-tier warehouse management system. In many cases, customers that book for self storage will also require warehouse storage space for their professional requirements.

FACTORS THAT HAVE CONTRIBUTED TO THIS REGIONAL REVOLUTIONTh e local popularity of self storage has grown as more and more people move into the city or shift from apartment to villa (and vice versa). Dubai, for example, has a limited amount of storage space, whether we’re looking at offi ce or domestic environments. Th is is where self storage becomes a helpful solution for customers that require extra storage space. Moreover, clients prefer to lease a self storage unit because of the fl exibility in selecting both the size and duration of storage. Th e other alternative, which is less appealing, would be leasing a considerably larger warehouse for a minimum of one year, where the rate is lower than self storage, but the fi nancial commitment is substantially larger due to minimum size and period restrictions.

CREATING AWARENESS OF SELF STORAGE TO POTENTIAL CLIENTSLike most businesses, creating awareness of the service presents the hardest challenge. In the logistics business, knowing where to advertise, with whom to form a strategic partnership, which kind of corporate client to target and how to improve services are all part of the process. To review, absorb and amend are keywords in this market. By following such guidelines, a company will inevitably start to grow and prosper.

USING STORALL AS A BAROMETER OF MARKET DEMAND IN THE REGIONDespite recent challenges in the logistics sector, Storall has managed to grow in size and market share, proving that demand for self storage does exist in the Middle East. In fact, we’ve recently expanded the capacity of our self storage facility by another one third. On several occasions, we’ve also had to sub-lease other storage facilities to meet our growing 3PL operation as well.

GROWING COMPETITION FROM OTHER PLAYERS IN THE MARKETTh e United Arab Emirates was the fi rst country to introduce the concept of self storage in the Middle East, with varying levels of success. At the moment, there are approximately half a dozen companies in Dubai and neighbouring areas that can genuinely be referred to as “self storage” providers. Naturally, there is a sense of healthy competition between the self storage companies here, which is always a good thing. As a matter of fact, we speak with one another - and in several instances, we have passed clients onto each other when we either lacked available space and/or were unable to accommodate a client. Th e same goes for our third party logistics operation - we have continued to benefi t from cooperating and keeping in close contact with other leading logistics companies, warehouse operators and freight forwarders in the region.

HINTS AND TIPS ON SELECTING A QUALITY SELF STORAGE PROVIDER Th ose seeking self storage should look for some basic principals when selecting their service provider. Th e facility should be located in a conveniently accessible location, dust-free and above all, climate controlled, because this will defi nitely make a diff erence during the summer. Th e facility should also have constant surveillance and controlled access, be clean and properly maintained, and off er various ancillary services, such as packing, crating, shrink-wrapping, strapping, and moving among others. Th e availability of ample passage-ways and wide entrance doors is another important element to look out for. All of these factors, along with the right product mix and friendly customer service, comprise the perfect recipe for a successful self storage provider.

QUESTION: What are the advantages of self storage for companies that operate in the Middle East region?

SELF CONTROL

This month’s column was written by Ghassan Abughazaleh, general manager of Storall

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

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

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

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

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

Take your storage to the right direction


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MONTHLY AIR CARGO REPORT: EUROPE REGION*

AIRPORT/COUNTRYJULY 2009/2008 YEAR-TO-DATE 2009/2008

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

Amsterdam (Netherlands) 110,560 -16.2 712,473 -25.3

Brussels (Belgium) 28,707 -32.4 222,798 -43.7

Cologne (Germany) 48,003 -4.7 310,859 -9.2

Frankfurt (Germany) 159,446 -10.4 1,008,732 -19.9

Istanbul (Turkey) 33,293 11.2 197,317 -6.0

Leipzig (Germany) 42,632 0.6 272,475 18.4

Liege (Belgium) 39,302 -5.3 252,912 -20.7

London Heathrow (UK) 114,560 -12.2 731,851 -16.1

Luxembourg (Luxembourg) 48,420 -24.9 348,014 -25.4

Paris (France) 153,000 -10.7 1,018,100 -15.8

Vienna (Austria) 15,355 -6.1 102,838 -11.5

Warsaw (Poland) 3959 -12.0 27,456 -15.4

Zurich (Switzerland) 30,102 12.0 161,003 -12.1

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 four 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) 3576 -20.9 27,521 -11.6

Addis Ababa (Ethiopia) 2606 n/a 23,056 -46.7

Algiers (Algeria) 1651 -8.5 13,989 0.5

Antananarivo (Madagascar) 1132 -20.6 6572 -31.2

Cairo (Egypt) 19,780 -5.8 167,275 1.0

Casablanca (Morocco) 3949 -12.8 33,775 -5.2

Dar Es Salaam (Tanzania) 1727 -10.6 10,583 -23.6

Durban (S. Africa) 44 n/a 1257 19.0

Entebbe (Uganda) 4544 -9.8 31,025 -13.4

Johannesburg (S. Africa) 25,550 -6.3 141,942 -24.4

Lagos (Nigeria) n/a n/a n/a n/a

Nairobi (Kenya) 19,654 -15.8 152,828 -13.3

Tunis (Tunisia) 1777 -5.3 10,605 -13.2

*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

18 September339

2 October332

EMIRATES SKYCARGO FUEL PRICE INDEX

CARGO STATISTICSThis graph represents the cargo volumes handled at Dubai International Airport over a 12-month period. Cargo fi gures, as provided by Airports Council International (ACI), are measured as loaded and unloaded freight and mail.

DUBAI INTERNATIONAL AIRPORT: CARGO STATISTICS

28 August355

21 August352

4 September332

16 October366


MONTHLY AIR CARGO REPORT: MIDDLE EAST REGION*



Abu Dhabi (UAE) 33,118 3.0 209,152 1.6

Al Ain (UAE) 708 198.7 1799 84.7

Amman (Jordan) 6952 -11.3 46,594 -11.1

Beirut (Lebanon) 6195 6.1 41,058 11.2

Dubai (UAE) 160,290 1.9 1,035,119 -0.4

Fujairah (UAE) 2724 n/a 20,037 -13.4

Kuwait (Kuwait) 17,465 11.6 107,972 3.1

Muscat (Oman) 5065 3.6 33,912 -0.6

Ras Al Khaimah (UAE) 1040 49.6 2492 -41.6

Sharjah (UAE) 41,911 36.3 227,210 20.3

MONTHLY AIR CARGO REPORT: NORTH & SOUTH AMERICA*



Anchorage (USA) 166,796 -14.5 984,732 -30.7

Buenos Aires (Argentina) 12,274 -22.4 79,932 -35.2

Chicago (USA) 100,696 -11.6 596,488 -26.2

Los Angeles (USA) 127,445 -9.5 808,519 -18.3

Memphis (USA) 308,912 1.3 2,074,328 -3.7

Mexico City (Mexico) 26,215 -20.3 175,983 -22.8

*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) 1936 -8.9 12,117 -16.5

Bangalore (India) 14,617 3.1 89,380 -11.7

Bangkok (Thailand) 87,844 -14.7 549,534 -24.9

Chengdu (China) 29,634 2.3 194,780 -15.4

Colombo (Sri Lanka) 12,500 -11.1 75,786 -20.6

Fukuoka (Japan) 21,525 -10.2 134,655 -15.4

Hong Kong (China) 293,847 -8.2 1,771,569 -17.9

Jakarta (Indonesia) 35,187 -18.8 243,663 -9.7

Kuala Lumpur (Malaysia) 54,497 -0.3 323,659 -20.8

Manila (Philippines) 29,687 -3.6 169,682 -19.5

Mumbai (India) 49,889 3.3 316,140 -5.2

Osaka (Japan) 51,034 -31.5 316,911 -38.8

Seoul (Korea) 9904 55.9 84,232 23.7

Shanghai (China) 222,749 -3.6 1,272,492 -16.5

Singapore (Singapore) 143,755 -12.9 911,003 -18.7

Taipei (Taiwan) 120,289 -5.9 676,977 -27.4

Tokyo (Japan) 166,194 -8.9 969,657 -23.5

INDUSTRY STATISTICS

For up-to-datefi gures, visit:


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FACTS & FIGURESOur 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.

INDUSTRY STATISTICS

FUJAIRAH BUNKER FUEL PRICE INDEX

BUNKER FUEL PRICE INDEX: MIDDLE EAST REGION*

PORT / COUNTRY IFO380 IFO180 MGO MDO

Dammam (Saudi Arabia) n/a n/a n/a n/a

Fujairah (UAE) 455 463 633 n/a

Jeddah (Saudi Arabia) 489 494 716 n/a

Khor Fakkan (UAE) n/a n/a n/a n/a

Port Sultan Qaboos (Oman) 434 483 642 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 20th October 2009. 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).

BUNKER FUEL PRICE INDEX: ASIA & OCEANIC REGION*


Busan (Korea) 468 478.5 640 630

Hong Kong (China) 439 447 634 n/a

Kaohsiung (Taiwan) 488 491 670 655

Shanghai (China) n/a n/a n/a n/a

Singapore (Singapore) 453.5 458.5 621 n/a

BUNKER FUEL PRICE INDEX: NORTH EUROPE REGION*


Copenhagen (Denmark) 462 457 677 623

Gothenburg (Sweden) 462 457 677 623

Hamburg (Germany) 445 460 657 605

Rotterdam (Netherlands) 443 462 610 645

St Petersburg (Russia) n/a n/a n/a n/a

BUNKER FUEL PRICE INDEX: NORTH AMERICA REGION*


Houston 434 447 n/a 614

Los Angeles 443.5 460 680 669

New Orleans 438 457 n/a 631

New York 432 459 n/a 671

Seattle n/a n/a n/a n/a

BUNKER FUEL PRICE INDEX: SOUTH EUROPE REGION*


Algeciras (Spain) 490 510 700 680

Fos (France) n/a n/a n/a n/a

Gibraltar (Gibraltar) n/a n/a n/a n/a

Istanbul (Turkey) 474 487 641 n/a

Piraeus (Greece) 463 480 645 n/a

BUNKER FUEL PRICE INDEX: SOUTH AMERICA REGION*


Buenos Aires (Argentina) 435 455 670 645

Montevideo (Uruguay) n/a n/a n/a n/a

Panama Canal (Panama) 448 467 672 n/a

Rio de Janeiro (Brazil) 463 481.5 695 n/a

Santos (Brazil) 454 472.5 679.5 n/a

20 Nov217

20 Oct455

20 Jul410

20 Mar244

Sea Freight Regional & International Statistics

20 Aug451


INDUSTRY STATISTICS

For up-to-datefi gures, visit:

COMMODITY DISCHARGED DETAILS: AUGUST 2009

CARGO TYPEAUGUST 2009 YEAR-TO-DATE

Discharged Loaded Discharged Loaded

Bulk cargo (solid) 2,186,443 565,941 12,661,795 4,657,035

Bulk cargo (liquid)* 354,543 4,587,358 3,503,653 38,852,075

General cargo 593,414 86,301 3,509,990 557,640

Containers (in tonnes) 2,308,781 1,399,945 16,910,337 11,209,616

Ro-Ro and vehicles 136,128 18,436 1,006,409 134,762

Livestock 6121 n/a 97,253 n/a

TOTAL 5,585,431 6,657,981 37,689,437 55,411,128

TOTAL PORT THROUGHPUT 12,243,411 93,100,565

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

CONTAINERS (TEU) 2009 2008

August Year-to-Date August Year-to-Date

Discharged 201,857 1,472,347 206,083 1,571,111

Loaded 178,253 1,438,183 198,668 1,512,147

TOTAL 380,110 2,910,530 404,751 3,083,258

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

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EVENTS CALENDAREVENTS CALENDAR

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

14th - 17th November 2009CERTIFIED SUPPLY CHAIN MANAGERTh e International Supply Chain Education Alliance (ISCEA) will host its latest Certifi ed Supply Chain Management (CSCM) summit at Sheraton Dubai Creek Hotel and Towers this month. With a workshop, exam and networking session included as part of the event, Tom Nauwelaerts from Al-Futtaim Logistics has been drafted for the keynote speech, while Alexander Andarakis, chief executive offi cer of Al Islami Foods, will also make a presentation on the success of his company’s supply chain operations.VENUE: Sheraton Dubai Creek Hotel & TowersEMAIL: [email protected] WEBSITE: www.iscea.net

7th – 8th December 2009SCM LOGISTICS MIDDLE EASTFigureheads from the retail, distribution and manufacturing sectors will gather at SCM Logistics Middle East this year to discuss how challenges such as rising business costs and inadequate infrastructure can be overcome with eff ective distribution, logistics and supply chain strategies. Keynote speakers include Vikas Bansal (Nikai), Swapan Choudhury (Landmark) and Sherif Riad (Kraft Foods).VENUE: Fairmont Hotel, DubaiEMAIL: [email protected] WEBSITE: www.terrapinn.com

31st January–2nd February 2010MIDDLE EAST PORTSRegional leaders from the shipping industry will gather at Al Murooj Hotel in Dubai next year for the fourth consecutive Middle EastPorts conference. Guest speakers such asJamal Majid Bin Th aniah from DP World, Charles Menkhorst from APM Terminalsand Gene Seroka from APL will address the latest opportunities and challenges for business growth, while updates will also be provided on the growing portfolio of Middle Eastern maritime developments.VENUE: Al Murooj Hotel, DubaiEMAIL: [email protected]: www.meed.com

16th November 2009AVIATION BUSINESS AWARDSTh e third annual Aviation Business Awards, which takes place at the Park Hyatt Hotel in Dubai, will feature 16 categories in total to honour the year’s biggest achievers from the Middle East’s aviation industry. Both companies and individuals will be rewarded at the ceremony, with trophies for Air Cargo Manager of the Year, Airline CEO of the Year, Air Charter CEO of the Year and Airport CEO of the Year, amongst others. In addition, the event will provide an opportunity to network with key players from the industry.VENUE: Park Hyatt Hotel, DubaiEMAIL: [email protected] WEBSITE: www.arabiansupplychain.com

9th December 2009WAREHOUSE AUTOMATION DAYSSI Schaefer has confi rmed plans to host its latest automation congress in

the United Arab Emirates next month, following a number of supporting events around the world. Th e company, which provides a range of material handling and warehouse technology solutions, has booked Le Méridien Beach Resort in Dubai for the free seminar, which has been designed to update its customers and partners in the Middle East on the latest developments in dynamic storage and order-picking systems.VENUE: Le Meridien Beach Resort, DubaiEMAIL: [email protected]: www.ssi-schaefer.ae

9th-11th February 2010CEMAT MIDDLE EASTDeutsche Messe has launched a Middle East version of its CeMAT exhibition, which takes place at Dubai International Convention and Exhibition Centre in February 2010. Similar in format to other events in the CeMAT franchise, which take place in Hannover, Shanghai, Istanbul and Bangalore, the exhibition will focus on the core sectors of intelligent goods handling, warehousing technology, internal transport systems for logistics and materials handling technology.VENUE: Dubai Convention and Exhibition CentreEMAIL: [email protected]: www.cemat-me.com

24th – 25th November 2009TRANS MIDDLE EASTBahrain has been selected as the host country for this year’s Trans Middle East, which is expected to attract more than 100 exhibitors from around the world. In addition, a supporting conference has also been confi rmed, with 35 world-class speakers taking part to discuss the latest trends in logistics, shipping and container ports, including a look at the growing list of warehousing projects in the Kingdom, such as Bahrain Logistics Zone.VENUE: Gulf International Convention and Exhibition Centre, Kingdom of BahrainEMAIL: [email protected] WEBSITE: www.transportevents.com

24th – 27th January 2010DEFENCE LOGISTICS MIDDLE EASTFollowing the success of last year’s Defence Logistics Middle East summit, with speakers including Professor Philbert Suresh from the Gulf University of Science and Technology (GUST) and Tarek Al Mousa from Agility Defence and Government Services (DGS), the event makes a return in 2010 to provide further examples on how national and international missions can be supported by a joint logistics process. Th e summit is aimed at freight forwarders, supply chain consultants and heads of military logistics.VENUE: Armed Forces Offi cers Club, Abu DhabiEMAIL: [email protected]: www.iqpc.com

12th – 14th March 2010KUWAIT LOGISTICS CONFERENCEKuwait is exploring a number of options to sustain its future economic growth, particularly in the aftermath of a global recession. To highlight the importance of the supply chain sector in achieving these goals, the fi rst Kuwait Logistics Conference is taking place in March 2010 to highlight the opportunities and challenges ahead. Various topics will be covered at the event, including reverse logistics, RFID technology and building strategic partnerships.VENUE: Hilton Hotel, KuwaitEMAIL: [email protected]: www.gust.edu.kw/glf

54

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40+

NOVEMBER 2009 | www.arabiansupplychain.com


FACE TO FACE

Can you provide a backdrop to the merger between Maersk Logistics and Damco?Basically, the A.P. Moller-Maersk Group made a decision earlier this year to combine its Maersk Logistics brand, which focuses on supply chain management activities, and its Damco brand, which deals with freight forwarding. As a result, both of these entities were merged on a global basis and commenced operations under the single Damco brand from 7th September 2009.

What objectives have been outlined by the A.P. Moller-Maersk Group for Damco?We want our dedication and passion for customer service delivery to continue at full pace. In addition, we will develop the strengths that are already embedded in our company, such as putting our clients and their businesses fi rst. To achieve these objectives, our teams across the world will be spending a greater amount of time on engaging with customers, asking them questions and making sure we’re off ering the best range of solutions possible.

To what extent have Maersk Logistics and Damco operated in Middle Eastern countries before the merger took place?We have a regional offi ce in Dubai, which is supported by a network of other offi ces in countries throughout the Middle East, such as Bahrain, Saudi Arabia, Qatar and Kuwait. Together, these facilities have provided a range of services to customers in the region, from basic freight forwarding to advanced supply chain management, which have been off ered as both Maersk Logistics and Damco. Following the merger of these two entities, the entire spectrum of those services will be operated under Damco, although it’s basically the same organisation with the same group of employees. Th e only diff erence is that customers will fi nd the work processes have been simplifi ed.

How important is the Middle East region for Damco on a global basis?We have traditionally placed a great deal of emphasis on emerging markets and that includes the Middle East. In fact, I would state that from a global perspective, our share of the emerging markets is probably second-to-none. Th e only international player that comes close would be Agility. So yes, the Middle East is important in that sense, although our presence in this region could be stronger and we defi nitely have high expectations for developing Damco over here in the coming years, especially in countries such as Saudi Arabia and the United Arab Emirates, as well as Egypt.

Has the company developed a strong network of facilities in this region?Generally speaking, Damco is pretty much everywhere, although our main strongholds are defi nitely the United Arab Emirates, with a greater focus on Dubai and Abu Dhabi, as well as Saudi Arabia and Egypt. Apart from that, we have a modest network of facilities in countries such as Bahrain, Kuwait, Jordan and Qatar.

How will Damco expand its operations in the Middle East?We have identifi ed a number of diff erent sectors that hold a lot of potential for Damco in this region. For example, we have established a strong reputation in the local petrochemical industry, which is something we will further develop in the future. Its a focus area for the company. In terms of products, there is huge scope for sea-air solutions, especially in Dubai, as well as inbound logistics for retailers that source their products from Asia.

In your opinion, has Damco managed to differentiate itself from other players in the global and Middle East markets?Th at’s a very interesting question and there are a couple of factors that should be taken into consideration. Firstly, Damco is a global company, with a presence in over 93 countries across the Middle East, Africa, Asia, Europe, North America and Latin America. However, despite this fact, we are very responsive to customer demands and this will support our growth, as it supported the growth of Maersk Logistics and Damco as separate brands in the past. In 2008, the combined businesses had a net turn-over of US$2.8 billion, shipped more than half a million TEUs in ocean freight, over 60,000 tonnes in airfreight, and handled over 50 million CBMs for our supply chain management customers.

Has the recession impacted your growth?We have been aff ected, especially in the

last quarter of 2008 and fi rst quarter of 2009, with

volumes coming down. Th ere has been a level of recovery in both the second and third quarters, which seems to indicate that things are getting better. Our

key objective is now returning to growth,

hopefully in the next quarter or two.

SMOOTH INTEGRATIONRolf Habben-Jansen, global CEO of Damco, explains why the company was merged with Maersk Logistics and how this will impact its operations in the Middle East.

FACE TO FACE INTERVIEW

logistics middle east - nov 2009

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