Logistics News ME March 2015

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Logistics News ME | March 2015 | 3

Start

Features

6 | News Scan: Roundup of Regional & International news

14 |Agility Logistics Index Non-BRICS nations driving markets air freight heavyweight

18 |GWCBu Sulba project puts GWC in the logistics spotlight

36 | Professional Perspectives: PK Menon on the ‘Big Wheel’ focus

42 |7th ESEA Awards : Dubai Trade hon-ours companies on

6

5146 | Asia Supply Chain Insights: Mark Millar on what is impacting Asia’s High-Tech Supply Chains

48 | SAP: SAP HANA powering SC solutions regionally

51| Partnerships in Logistics: Swisslog’s CarryPick solution for DB Schenker

Contents

3626 | Storage via STORALL: Finding answers to storage issues

38 | RAK FTZ: Reaping Dividends

52| GIL 2015: Frost & Sullivan’s stimulating annual conclave

53| GENAVCO-Weber MT: Sophisticated German ‘compaction’ technology now available in the region

54| RSA-GEFCO: The tale of symbiotic partnership

26 | Storage via STORALL: Finding answers to storage issues

30 | Port Progress: DP World, ADPC, SOHAR—Lower Gulf ’s top Port Trinity

4 | Logistics News ME | March 2015

Editor’s Note

Many professionals I have recently spoken to in the logistics & supply chain business, characterize the current industry situation in the wider Middle East as being both volatile and resilient. Dramatic developments unfolding before our very eyes in some pockets of the MENA region appear to have ir-retrievably altered the landscape in the affected areas and cast a pall on economic prospects not just for the logistics sector but for businesses in general. Clearly, unpredictability rules the day.

Others, particularly the resilient GCC nations, despite the concerns caused by plummeting oil prices, appear to be hold-ing their own.

Although the energy sector has been hunkering down in some quarters, it ap-pears to be able to live with it. The silver lining though, as a spin-off to the de-pressed prices, is a new surge of increased activities in other industrial segments tak-ing advantage of lower energy costs, dis-pelling fears of yet another downward spi-ral in economic goings-on.

For our cover story for this edition, Lo-gistics News Middle East took a ‘quantum’ leap to Qatar, our first foray outside the UAE, to focus on the heavyweight Gulf Warehousing Company (GWC), a fully owned & publicly listed Qatari shareholding company, formed in March 2004. Now, the largest provider of multi-logistics services in the country, is in the frontlines of lead-ing nothing short of a ‘logistics revolution’ in the nation, with it bagging the prized, massive and ambitious US$ 188 million Bu Sulba Logistics Hub project to serve SMEs in the

HOLDING THE FORT

Malcolm Dias Editor [email protected]

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Mark Millar, Joy Thattil,Prakash PK Menon

country. GWC Group CEO, Ranjeev Menon, who is spear-heading the company’s rapid expansion responded to our ex-clusive questionnaire.

GCC ports have also become under the scanner because of booming trade, superb performance, state-of-the-art facili-ties, huge investments and rapid expansion. We put three of

the biggest ports in the Lower Gulf into fo-cus with exclusive interviews with top offi-cials from DP World Jebel Ali; Abu Dhabi Ports Company and thePort of SOHAR We talked to Ghassan Abughazaleh, General Manager, STORALL, a pioneering develop-er and provider of a range of storage solu-tions. Ramy Jallad, Chief Commercial Of-ficer, Ras Al Khaimah Free Trade Zone, brought us to speed on developments at one of fastest growing free zones in the region.

Elsewhere we had an exclusive rendez-vous with the visiting London-based Mike Wade, Vice President, EMEA, for the Ex-tended Supply Chain Line of Business, SAP, at the company’s offices in Dubai Internet City. We engaged Mike on SAP HANA, the software giant’s proprietary, in-memory platform and the impact it is having in on

the supply chain & logistics sector in the region. Do write to us with your comments and what you would

like to see us cover in forthcoming editions. Do enjoy reading this edition!

Group Sales Manager Jayant Dey

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Logistics News ME | March 2015 | 5SSI Schaefer Systems International DWC LLC

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The News

Abu Dhabi Terminals, recently celebrated the maiden call of the world’s largest container Roll-On/Roll-Off (Con-Ro) vessel; Jolly Titanio owned by shipping line Messina Line.

Captain Scotto Di Fasano Francesco was presented with the traditional port plaque associated with a maiden call in the presence of Abu Dhabi Terminals’ CEO, Martijn van de Linde, Captain Giordano Gelasini, Regional Director, Messina–Dubai and several representatives and guests of both companies.

The 2014 built, Italy flagged;

50,300 gross tonnage Jolly Titanio is 240 meters long by 37.50 meters wide with 6,350 meters of Ro-Ro cargo capacity designed to carry wheeled cargo, such as cars, trucks and trailers. Capable of carrying 3,900 TEU, it is the largest container Ro-Ro vessel to call in the UAE.

The vessel will call at KPCT every fifteen days with a port rotation of Castellon-Genoa-Salerno-Aqaba-Port Sudan-Jeddah-Djibouti-Bandar Abbas-Jebel Ali-Abu Dhabi-Jubail-Djibouti-Jeddah-Misurata (Libya).

WORLD’S LARGEST CONTAINER RO-RO VESSEL CALLS AT KHALIFA PORT

Dimensions: 240 m long 37.5 m wide

Jolly Titiano: The world’s largest Container Ro-Ro Vessel

United Arab Shipping Company (UASC) has announced that it has agreed a new partnership with CMA CGM and Hamburg Süd to enter the North Atlantic trade.

Through this new vessel sharing agreement, the three partner companies will operate a service on the Transatlantic North trade, linking Northern Europe with the United States East Coast. The service will call at the ports of Antwerp, Rotterdam, Bremerhaven, Le Havre, Southampton, New York, Norfolk, Charleston and Savannah and vice-versa, offering competitive transit times and a weekly capacity allocation of around 3,300 TEU.

Jorn Hinge, President and CEO at UASC, commented: “Collaboration with other leading carriers ensures that we can provide our customers with the widest scope of global services and the lowest possible unit costs, whilst growing in a responsible fashion and without adding unnecessary capacity.”

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UASC ENTERS NORTH ATLANTIC TRADE

US $ 27 BILLIONEXPECTED VALUE OF THE UAE

LOGISTICS SECTOR IN 20156 % - LOGISTICS SECTOR AS A PERCENTAGE OF THE UAE’S GDP7.8 %- THE MIDDLE EAST’S

PROJECTED ANNUAL PERCENTAGE GROWTH UNTIL 2017

RTA, ETIHAD RAIL IN STRATEGIC AGREEMENT

The Roads and Transport Authority (RTA) and Etihad Rail have signed a significant strategic agreement that will focus on cooperation in securing railway alignments, station locations and defining the contractual and operational responsibilities for both parties. Signatories to the agreement were HE Nasser Ahmed Al Suwaidi, Chairman, Etihad Rail and HE Mattar Al Tayer, Chairman of the Board and Executive Director, RTA. As part of the agreement, RTA will assign representatives to coordinate issuing Non-Objection Certificates (NOCs) of any road works required by Etihad Rail in line with the timeline and framework agreed by both parties. Etihad Rail has committed to conducting technical studies and presenting the findings in the form of architectural reports and blueprints to the responsible governmental authorities in Dubai. Upon completion, the Etihad Rail network will span approximately 1,200 kilometers across the UAE, transporting both freight and passengers. .............................................

3,900 TEUs Container Capacity 6,350 m Ro-Ro Capacity

Jorn Hinge


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Air Arabia 2014 net profit climbs 30% Air Arabia reported a record net profit for the calendar year 2014 of US$ 154.22 million, up 30 % compared to US$ 118.53 million for the same period last year. The airline’s turnover for the full year 2014 reached US$ 1.008 billion, an increase of 17 % on 2013, driven by increased passenger numbers. Air Arabia carried over 6.8 million passengers in 2014, 12 % more than last year. The average seat load for the same period stood at an impressive 81 per cent.

Air Arabia’s net profit for the fourth quarter, stood at

US$ 18.53 million and its turnover for the same period was US$ 251.77 million, an increase of 14 % compared to the same period in 2013. Passenger traffic for the Q4-2014 reached 1.7 million, an increase of 8% compared to the same quarter of 2013.

Now in its eleventh year of successful operations, multiple-awards winning Air Arabia operates flights to 101 destinations. It currently operates a total fleet of 40 new Airbus A320 aircraft, serving four hubs in the UAE, Morocco and Egypt.

Air ArabiaUS$ 154.22mNet profit 2014US$ 1,008b 2014 Turnover40 Total Fleet of new Airbus A320 Aircraft4 Number of International Hubs

www.dpworld.ae

Jebel Ali Port is ranked amongst the Top 10

container ports worldwide


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Capt. Mohamed Juma Al Shamisi, CEO, Abu Dhabi Ports (L) and Tarek El Goweiny, CEO, NCC, at the signing ceremony

Abu Dhabi Ports has signed a Musataha agreement with National Catering Company (NCC) Group of Companies, one of the largest organizations in the UAE, specializing in catering, facilities management and the retail Food and Beverage (F&B) sector.

The agreement secures the NCC Group of Companies a 25,000 sq. m. plot of land in the Khalifa Industrial Zone (KIZAD) where NCC will invest approximately US$

13.62 million to set up its new central production unit, laboratories and warehousing logistics hub, including a new headquarter.

The new plant will allow NCC to further expand on its food processing business and its catering service provisions offered to government and private organizations predominantly within the local market, ranging from oil and gas companies to labour cities, as well as Engineering,

Procurement and Construction (EPC) contractors.

On the warehousing and logistics side, NCC will triple its storage capacity at Khalifa Industrial Zone. NCC will also use the new location as a hub for a new online delivery platform, which is currently being developed, to enhance its customers’ experience and convenience through its new digital supermarket brand Souq Planet.

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NCC to open operations hub at KIZAD

25,000 sq. m.—The KIZAD plot area secured by NCC Capacity US$13.62 million—NCC’s investment in the new facilities15 —The number of NCC branches across the UAE

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www.dpworld.ae

Premier gateway for over 90 weekly services connecting more than 140 ports worldwide


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flydubai recently announced the launch of flights to Ahwaz, Hamadan, Isfahan, Shiraz and Tabriz in Iran. The announcement will see flydubai’s Iranian network grow to seven points, adding to the launch of flights to Tehran and Mashhad in 2014.

“We look forward to showcasing our product offering to passengers travelling to the seven Iranian cities. We are confident that passengers will enjoy our services, award-winning In-Flight entertainment and the ability to connect to our growing network or beyond, through the Dubai hub,” observed Jeyhun Efendi, Senior Vice President Commercial (UAE, Middle East, Europe, and CIS), flydubai.

flydubai launched 23 new destinations in 2014. The airline now operates more than 1,400 weekly flights to an expanding network of 94 destinations within a six-hour flying radius from Dubai.

FLYDUBAI ADDS FIVE NEW CITIES TO ITS IRANIAN NETWORK

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DC Aviation Al-Futtaim, the only fully integrated business aviation facility currently at DWC, has announced that it has been issued its Air Operator Certificate (AOC) by the UAE’s General Civil Aviation Authority (GCAA).

With the AOC in hand, DCAF can now operate and manage third-party business aircraft commercially which includes aircraft charter under the UAE’s A6 registration. DCAF will initially begin its commercial operations with a Bombardier Global XRS aircraft.

Holger Ostheimer, General Manager at DCAF asserted: “We are extremely

pleased to have cleared all the regulatory requirements to receive our AOC. The receipt of the certification culminates over a year’s work towards this endeavour.”

DCAF has its state-of-the-art hangar, maintenance facility, offices and a VVIP lounge located at its base in Al Maktoum International Airport at Dubai World Central. DCAF is a joint venture between Dubai-headquartered Al-Futtaim and Germany’s DC Aviation, one of the leading European business jet operators.

DC AVIATION AL-FUTTAIM RECEIVES AIR OPERATOR CERTIFICATE

23—The number of new destinations launched by flydubai in 2014

Voted as “Best Seaport in the Middle East” for 20 consecutive years

www.dpworld.ae

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Al-Futtaim Auto & Machinery Co. LLCUnited Arab Emirates: 800 32626 Saudi Arabia: 800 1244414e-mail: [email protected] www.al-futtaim.com

www.famcouae.comwww.famcosaudi.com

It is, without doubt, one of the harshest environments on earth: the Empty Quarter in the Kingdom of Saudi Arabia – the largest and most barren sand desert in the world, spreading itself over four Arab nations and covering 650,000 km2 which is comparable in size to France. Temperatures range from 50° to -1°C in the course of a single day and the sand and dust are relentless. The nearest city is 1000 kilometres away. So the construction of a 256 kilometre road cutting through this wildnerness, linking Saudi Arabia to the Sultanate of Oman, called for an extraordinary solution.The response: a eet of 95 Volvo machines was assembled. Together, they shifted over 130 million m3 of sand just to build the bridge of the road – an extraordinary feat in such harsh conditions, yet the quality and power of Volvo engineering was up to the challenge. The difculties created by the remote isolation of the worksite were answered with excellent customer support from FAMCO, the authorised Volvo dealer in Saudi Arabia, which included the organisation of mobile 24/7 service workshops that moved forward with the construction operation. Discover a new way.

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Dynamism in GCC countries and the large, next-tier economies of Indonesia, Nigeria, Bangladesh, Mexico and Pakistan is offsetting

mixed performance in the BRICS countries that powered emerging markets growth in recent years.

The more balanced picture for growth is reflected in the 2015 Agility Emerging Markets Logistics Index, an annual data-driven ranking of 45 emerging economies accompanied by a separate survey of nearly 1,000 global logistics and supply chain executives.

The Index, now in its sixth year, ranks emerging markets based on their size, business conditions, infrastructure and other factors that

make them attractive for investment by logistics companies, air cargo carriers, shipping lines, freight forwarders and distribution companies.

Large BRICS nations Brazil, Russia, India, China and South Africa have accounted for much of the growth and investment in emerging markets and have dominated the Index. Saudi Arabia climbed to No. 2 in the 2015 Index, ranking behind only China, which has 47 times the population and 12.5 times the economic output.

Gulf states UAE, Qatar and Oman, ranked as having the best ‘market compatibility’, the most ideal business conditions, among the 45 countries in the Index. They were followed by Uruguay, Saudi Arabia and Morocco.

UAE, Malaysia, China, Oman, Saudi

Arabia and Chile led in ‘connectivity’, indicating they have the best infrastructure and transport links among emerging economies.

“Infrastructure investment and structural reforms that improve the climate for businesses have positioned Saudi Arabia, the UAE, Qatar and Oman to weather the downturn in energy prices,” remarked Elias Monem, CEO Middle East & Africa, Agility Global Integrated Logistics. “They continue to pursue smart policies that will help them diversify and make them more inviting to the logistics industry as consumer markets and logistics hubs providing high-value supply chain services,” he added.

Next-tier economies Indonesia (No. 4 in the Index), Nigeria (27), Bangladesh (28) and Pakistan (25) – all with populations topping

GCC NATIONS DRIVING OPTIMISM IN LOGISTICS SECTOR

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SAUDI ARABIA CLIMBS TO THE NUMBER TWO SPOT AFTER ONLY CHINA; UAE, QATAR, OMAN

OFFER BEST BUSINESS CONDITIONS AMONG 45 DEVELOPING ECONOMIES


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100 million – climbed in the Index rankings. The other large non-BRICS market, Mexico, held steady at No. 9.

Elsewhere in the Gulf, Kuwait slipped three spots to No. 21 in the Index, and Bahrain fell two to No. 24. To close the gap with its Gulf neighbors, Kuwait needs to accelerate infrastructure investment and economic reform. Bahrain posted strong growth in the first half of 2014 but continues to deal with the aftermath of sectarian tension.

The picture was mixed for non-Gulf countries of the Middle East. Jordan slipped five spots to 29 in the Index despite strong scores for its business conditions. Jordan has been affected by fighting in neighboring Syria and Iraq, its largest trading partner. Lebanon, also affected by fighting in Syria, fell two spots to No. 42. Turkey, which has a much larger and more diversified economy, was

more resilient, holding steady at No. 10 despite fighting on its southern border, concerns about the falling lira and internal political tension.

In North Africa, relatively stable Algeria leaped three spots to No. 34, but Algeria has yet to feel the full brunt of falling oil prices, which have added urgency to calls for economic diversification. Egypt’s slide continued. It dropped from No. 28 to No. 32 despite signs that the current government has halted the decline that began in 2011. Even so, many analysts forecast a strong recovery for Egypt in 2015, and the relative stability brought about by the government has prompted a reconsideration of the country’s prospects among logistics and supply chain executives. It climbed four spots in the survey to No. 20 among markets thought to be emerging as major logistics markets.

Elsewhere, Tunisia (No. 35) shows signs of

stabilizing in the wake of political upheaval but is feeling the spill-over of ongoing violence in neighbouring Libya. Libya, torn by extremism and militia fighting, experienced the biggest slide of any country in the Index, falling seven spots to No. 40.

Other Index findings:The Philippines climbed three spots (to No.

16) in the data portion of the Index – after jumping nine spots in the 2014 Index. The country also improved its standing among supply chain executives surveyed. They pushed the Philippines up five spots (to No. 15) among countries they determined will emerge as a major logistics market.

Russia’s growing economic isolation has damaged its appeal to logistics and supply chain professionals. More than 75% of survey respondents affirmed they were pessimistic about Russia’s prospects.

India continues to divide logistics and

A G I L I T Y E M E R G I N G M A R K E T S L O G I S T I C S I N D E X


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Russia’s growing economic isolation has damaged its appeal to logistics and supply chain professionals. More than 75% of survey respondents affirmed they were pessimistic about Russia’s prospects.

India continues to divide logistics and supply chain executives. They ranked India as the No. 2 choice to emerge as a major logistics market and ranked it relatively high -- No. 17 -- among countries least likely to become a major logistics market. In the data portion of the Index, India was leapfrogged in 2014 by Brazil and Saudi Arabia, and it slipped again in the 2015 Index, falling past Indonesia to No. 5. India’s ‘market compatibility’, a gauge of business conditions, deteriorated despite optimism about reforms under the new Prime Minister Narendra Modi.

The fastest-growing trade lanes linking emerging and developed markets were US-Vietnam (up 42.7% by volume) and Cambodia-EU (up 41.9%) for air cargo; and

Ukraine-EU (up 35.8%) and EU-Egypt (up 23.2%) for ocean shipments. But for 2015, trade flows between Asia’s emerging markets and other emerging markets are the ones that had logistics professionals most upbeat in the survey. Survey respondents also identified risks to growth by region and provided views on near-sourcing, e-commerce and other trends affecting emerging markets.

“A year ago, there was talk of an emerging markets meltdown and of a new ‘fragile five’ based concerns about weakness in South Africa, Brazil, India, Turkey and Indonesia,” remarked Essa Al-Saleh, President & CEO of Agility Global Integrated Logistics. “Emerging markets as a group turned out to be far more resilient, even vibrant, than expected despite continued sluggishness in the global economy,” he added.

Al-Saleh said a number of developing countries have invested in infrastructure and taken steps to address long-standing

problems such as labor and tax rules, investor protections, contract law, property rights, capital restrictions, trade and land-use regulations. He observed risks to emerging markets growth in 2015 will come from falling commodity prices, the cooling Chinese economy, U.S. monetary tightening and Russia’s economic woes.

For 2015, the International Monetary Fund forecasts average growth for the 45 countries featured in the Index at 4.57%.

“The factors driving growth are increases in population, size of the middle class, spending power and urbanization rates, along with steady progress in health, education and poverty reduction,” Al-Saleh noted. “That’s why we remain optimistic about emerging markets and continue to see them on an upward trajectory.” The Index was compiled by Transport Intelligence (Ti), a leading analysis and research firm for the logistics industry.


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The Bu Sulba Logistics Hub has become Gulf Warehousing Company’s (GWC) proverbial icing on the cake and its ‘single biggest accomplishment’ in 2014, with the company winning the contract for the 517,376 sq. m. site, which is one of Gulf Warehousing Company’s biggest sites constructed to date, second only to the

Logistics Village Qatar (LVQ). The awarding of this high-value project contract was an affirmation of the trust and confidence placed in GWC’s expertise, experience and capabilities.

Additionally, the Logistics Village Qatar developed a further 81,000 sq. m., adding to an already ‘impressive’ array of

warehousing and distribution infrastructure during its fourth phase expansion during last year’s third quarter. The company said it intends to further supplement its one-stop shop, immediately operational fully integrated logistics infrastructure through a fifth expansion phase currently at the tendering stage.

EXPONENTIAL GROWTH


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GWC also expanded on its industry specific assets, working to add nearly 65,000 sq. m. of facilities at its Ras Laffan Industrial City (RLIC) site, which will provide a new temperature-controlled warehouse, a new open yard, and one of the first ISO tanks in the nation.

“This constant development of our assets

as well as seeking to meet our client needs are part of an all-embracing strategy to ensure that our stakeholders see constant returns on their investment,” affirmed GWC Chairman Sheikh Abdulla Bin Fahad Bin Jassem Bin Jabor Al-Thani.

Gulf Warehousing Company’s investments have shown “strong”

dividends, and have made “remarkable” gains in all the company’s departments, including contract logistics and freight forwarding, earning major contracts with clients in the oil and gas field as well as other sectors.

The Record Management Solution (RMS) department continues to dominate

QATAR’S TOP COMPREHENSIVE LOGISTICS SERVICES PROVIDER, GULF WAREHOUSING COMPANY CAME UP TRUMPS AND CLOSED

STRONG WHEN IT WAS AWARDED THE CONTRACT FOR CONSTRUCTING THE QR 685 MILLION (US$ 188 MILLION) PRESTIGIOUS BU SULBA

LOGISTICS HUB PROJECT IN THE CAPITAL DOHA (IN THE FACE OF STIFF COMPETITION) IN MID-DECEMBER 2014


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GWC FACILITIES

the market, serving nearly all financial institutions in the country and entering the medical records field just this year with two major contracts with national health providers. International Moves and Relocations continued to expand its operation, and continues to maintain a 98% satisfaction rate on all moves, which have included full-office tower moves.

GWC Fine Art Logistics has taken steps to ensure its position as the country’s preferred fine art movers, and have therefore gained several national art installation and movement contracts. The transport department, meanwhile, added to its assets by establishing a container repair service offered directly to its clients through the LVQ site.

Established in 2004, Gulf Warehousing Company is the leading provider of integrated logistical solutions in Qatar. GWC, a Qatari shareholding company, is one of the largest supply chain service providers in the region, offering warehousing and distribution, hazmat

logistics, freight forwarding, project logistics, sports and event logistics, fine art logistics, supply chain consulting, transportation management, asset management, records management, and moving and relocation services to various industry verticals.

Ranjeev Menon, Group CEO, Gulf Warehousing Company, responded exclusively to a questionnaire by Logistics News Middle East covering a wide range of subjects related to the Bu Sulba Logistics Hub, the company’s more recent corporate developments and accomplishments, its performance, the state and potential of the logistics industry in Qatar and GWC’s role in being an integral part of and realizing the wider vision of Qatar 2030.

Gulf Warehousing Company (GWC) was recently awarded the US$ 188 million contract to develop the Bu Sulba Logistics Hub in South Central Doha amid stiff competition. Why do you believe GWC was the recipient of this deal?

I think our ascent up the ladder of

industry leadership within the past ten years has been nothing short of exceptional and has definitely contributed to the confidence that Manateq (Economic Zones Company, Qatar) and the National Logistics Task Force (NLTF) has placed in us when awarding the Bu Sulba contract. We are very proud of our achievements within this time frame, but also thoughtful and reflective of what it took to get here. The spirit and attitude with which we approach our mandate is what truly sets us apart.

It was with this spirit that we established our first, flagship facility at Street 15, offering flexible warehousing and 3PL solutions within one facility, including varied temperature warehousing. This then expanded into our Street 41 facility, followed with our industry-specific facilities in Messaieed and Ras Laffan, offering Hazmat (Hazardous Materials) and chemical storage to the oil and gas industry as well as others in the areas they called home.

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It was with this spirit that we established our first, flagship facility at Street 15, offering flexible warehousing and 3PL solutions within one facility, including varied temperature warehousing. This then expanded into our Street 41 facility, followed with our industry-specific facilities in Messaieed and Ras Laffan, offering Hazmat (Hazardous Materials) and chemical storage to the oil and gas industry as well as others in the areas they called home.

We then reflected on what we have learned as a logistics provider vis-a-vis the level of demand, the types and specifications of the warehousing needed, and the multi-faceted nature of services that our clients needed, and put it to use in our designs for the Logistics Village Qatar (LVQ), the 1 million sq. m. fully integrated logistics hub. The LVQ is far more than a real-estate project, but rather a targeted logistics infrastructure project, devising solutions based on our understanding of our client’s needs; an understanding that will further inform how we are developing the Bu Sulba Logistics Hub.

GWC has had a long and successful track record of developing and managing bespoke logistics hubs in country including Logistics Village Qatar, Ras Laffan Logistics Hub and Mesaieed Logistics Hub. How significant is this project vis-a-vis its other established peers and how will it complement the latter?This project is a crucial part of our long-term strategy, as we seek to satisfy the gap in the logistics infrastructure required in the country.

RANJEEV MENONGroup CEO, Gulf Warehousing

Company Ranjeev Menon graduated from

Madras University of India with a B.A. in Economics.

He subsequently earned his Master of Business in Supply Chain /

Logistics Management from RMIT University of Melbourne, Australia.

Ranjeev started his career in the logistics industry 1992 in Sharjah,

UAE and became Gulf Warehousing Company CEO in January 2009.

Under his leadership, the company has become one of the fastest grow-

ing in the Middle East logistics sector.

Seen as one of the most influential figures in the industry and with

over 20 years’ experience behind him, Ranjeev Menon was ranked as one of the 100 most powerful

Indians in the Gulf by a UAE based business title.


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By our own estimates, the country will require between 5.5 – 8 million sq. meters of additional logistics infrastructure if it aims to meet the deadlines it has set for itself for both the World Cup 2022 and the Qatar National Vision 2030.

We also strongly agree with the government position on the role that small and medium enterprises (SMEs) will play in diversifying industrial sectors and supporting a non-hydrocarbon dependent economy. To help these SMEs flourish, we must provide them with access to robust logistics infrastructure solutions at a reasonable cost. The Bu Sulba Logistics Hub will provide these enterprises with all the facilities in place at the LVQ at competitive prices that will allow them to begin operations immediately, focusing on their core business while leaving the logistics aspects to us.

Put into perspective the infrastructure in place at the Bu Sulba Logistics Hub?The Bu Sulba Logistics Hub will feature a variety of different operational and recreational facilities in its aim to create a fully self-contained community. For our clients’ warehousing needs, we will offer them a choice of distribution centers and multi-purpose warehouses, which will provide dry, chilled, frozen, temperature

controlled, and bulk warehousing. In addition to the warehouses, we will put in place open yard storage areas and a container yard. We will ensure proper access to these facilities through a system of roadways that will guarantee smooth access of all vehicle types.

Moreover, clients will be able to manage these facilities on-site in the office and administrative buildings we will build throughout. All our warehouses will also be powered by our state-of-the-art IT infrastructure, which will offer on-demand services the moment the client occupies a warehouse. These services will offer client the access to fiber-optic network, IP telephone lines, internet access, and all other data services. We will also make available to our clients the latest warehouse management system (WMS) in-order have the optimum monitoring and tracking of their storage operations.

Beyond the operational facilities, we will also ensure the comfort of those on-site by providing dining and shopping facilities, recreational areas, a first aid center and a mosque. We will also be constructing staff accommodations of the highest quality within the perimeters of the hub, yet with enough separation to ensure the peace and comfort of the residents.

What role do SMEs play in Qatar’s logistics (& supply chain) landscape and how will they benefit from this project? How will the proposed Bu Sulba Logistics Hub alleviate the shortage of and support businesses clamouring for additional storage space?Small and Medium Enterprises (SMEs) have become a crucial component in the State of Qatar’s larger plan to diversify its economy beyond hydrocarbons. With World Bank statistics showing that SMEs represent around 60 percent of MENA GDP, and as recent numbers showing non-hydrocarbon growth head-to-head with the hydrocarbon sector, it has never been more important to ensure that the nation’s infrastructure caters to the SMEs as well as it caters to the larger corporations.

Price is definitely a concern for companies starting up, but other factors also play equally important roles in ensuring the success of an SME. Access to immediately available assets that are scalable enough to grow as the operation grows is one such factor, as is instant control and transparency in regards to such infrastructure.

SME logistics needs extend beyond storage and distribution. These enterprises require assistance managing their

GWC FACILITIES


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international freight requirements, their customs clearance, acquiring insurance, managing local and international bureaucracies, and even packing and receiving shipments. All these choices and concerns can have a direct impact on their business continuity, and SMEs can benefit greatly for strong guidance on these issues.

The Bu Sulba Logistics Hub will individually handle these concerns, providing clients with immediately operational, pre-designed and constructed infrastructure, with all licensing, certification, security, safety and customer service concerns already handled by our project team.

As the hub will continue to be managed by GWC, clients will have full access to our full range of solutions and services, as well as our local and international service networks. Finally, we will provide all of this at a competitive price that the individual client cannot match should he choose to undergo the entirety of the process on his own.

When is the Bu Sulba Logistics Hub expected to be completed?The Bu Sulba Logistics Hub is expected to be completed by the first quarter of 2017.

What is the range of storage solutions on offer to potential renters of the warehousing units?We will provide our clients with distribution centers, multipurpose warehouses, and open yard storage. Our distribution centers and multipurpose warehouses will be built to the latest specifications, offering pre-engineered structures and various storage options including frozen, chilled, temperature controlled, and dry storage, as well as bulk and open yard storage. For ease of operations, each warehouse will be equipped with adequate docking areas and facilities, super flat floor slab, and we will provide enough distance for vehicle maneuverability in front of the docking doors.

Beyond the types of services offered, we have also included in our designs the prospect of growing alongside the growth of our clients, allowing them to expand their operation within the Bu Sulba Logistics Hub as their operations take off. We also understand that few clients have singular, straightforward needs, and therefore offer flexible services that meet their unique requirements.

We will also provide professional consultancy services to provide our clients

with the optimal methods for storage and organizing inventory available in the industry, making maximum use of the space in the most efficient and secure manner possible.

How is this iconic project a big leap for the company and how does it bring the country closer to the realization of the Qatar National Vision 2030?As previously stated, the Qatari government fully appreciates the role that SMEs and startup will play in diversifying the nation’s economy, filling in the gaps and taking advantage of opportunities that larger players may overlook or not have access to. This directly serves the mandate of the Economic Development pillar of the Qatar National Vision 2030. It will also contribute to the social development of the nation, as many of these enterprises will serve the needs of clients both locally and internationally that are working to create a just and equitable society. Therefore, the project will work to enable SMEs to complete their missions and maintain their trade, removing all bureaucratic and operational obstacles in their path, and allowing them to grow and thereby allowing the nation and its economy to grow as well.


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S T O R A G E S O L U T I O N S o n t h e g o

It was way back in 2006 when Storall was uniquely conceived & created to serve the storage and safe-custody needs of the UAE’s newcomers, longtime residents and growing businesses.

This new, pioneering initiative, clearly has paid dividends and today Storall is a leader in providing secure, customized, personal and business storage solutions in the UAE and has ambitious plans to cover the GCC and eventually the entire Middle East.

Storall offers a spectrum of storage solutions conveniently located in the Jebel Ali Industrial Area both for private occupants seeking personalized storage space for household items to companies seeking to store bulk equipment and other voluminous items. Storall gives its clients a large choice of different secure storage solutions to choose from, including climate-controlled and non-climate controlled ‘self-

storage’ rooms of various sizes; large drive-up access general storage rooms and palletized rack space. Storall is part of the A&H Al Ghurair Investment Group (Abdullah & Hamad Al Ghurair).

Logistics News Middle East spoke exclusively to Ghassan Abughazaleh, General Manager, Storall who provided the lowdown on the company, its provenance and its expansion plans for the future.

Briefly explain the genesis of Storall—why and how it came to be established?Storall was created back in 2006 to meet the needs of the UAE’s new settlers, long-time residents, and growing businesses by offering cost-effective storage solutions to personal and business requirements under one roof.

The concept was at the time relatively new to this region, so we took painstaking care to

consider every immediate need, every potential future requirement and every facility that our clientele would require to make their storage experience with us an enjoyable and satisfied one. At Storall our mission is to give our customers innovative, secure, and convenient storage solutions that meet their respective needs and expectations.

How would you characterize the progress of Storall thus far?We have been fortunate to maintain a steady growth to meet the increased demand over the years by continuously expanding our in-take capacity for both of our primary storage offerings, Self-Storage as well as 3PL/Warehousing. More importantly, we pride ourselves in treating all customers, large and small, as equally important – extending them a personalized/bespoken service that matches


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Ghassan Abughazaleh, GM, STORALL

Ghassan F. Abughazaleh is at the helm of STORALL

LLC, a subsidiary of one of the leading UAE conglomerates, A&H

Al Ghurair Investment Group. He initially joined

the group in 2006 as head of business development where he was involved in establishing & developing

several new projects. With over 25 years of experience in various

business sectors across the region, the Group’s

Board of Directors relies on Ghassan as one of their

leading internal consul-tants for a variety of exist-

ing and new ventures. Ghassan’s diversified

business acumen stems from years of working in the fields of marketing,

advertising, trading, man-ufacturing, finance, and

agriculture with extensive experience in transform-ing organizations, launch-ing and developing new

ventures.

We offer two main types of storage: Self Storage and 3PL / Warehousing – as well as ancillary services that compliment them. Our Jebel Ali Self Storage facility is

comprised of over 200 air-conditioned rooms of varying sizes (30-300 square feet) designed to preserve possessions in a reasonably cool temperature

their particular requirements at the highest standards of quality. With regard to Self-Storage, we can safely say that Storall has a substantial share of the UAE market. As for our 3PL/Warehousing offering, and due to our unique location outside the free-zone, we cater to a niche segment of the market where clients see us as their strategic business partner that is able to economically store and manage cargo on their behalf in an efficient & professional manner.

Describe the range of services / facilities, Storall offers its customers?We offer two main types of storage: Self Storage and 3PL / Warehousing – as well as ancillary services that compliment them. Our Jebel Ali Self Storage facility is comprised of over 200 air-conditioned rooms of varying sizes (30-300 square feet) designed to preserve possessions in a reasonably cool temperature. That number will reach 600 rooms once our Al Quoz facility is completed towards the end of this year. Our rooms are designed with convenience in mind enabling us to extend the size of any room as long as the adjoining one is free. Also available are unique, Mini Warehouses with sizes ranging from 800-3000 square feet each, these spaces were designed to allow you to drive up in your vehicle (car or pickup) and offload directly.

Our 3PL/Warehouse Facility is equipped with state-of-the-art Very Narrow Aisles (VNA) Racking System (VNA) accessed by man-up turret lifters with a 1500 kg lift capacity. We have Ambient & Climate Controlled racked & free-standing areas along with external open storage areas. The warehouse operation is enabled with a top-tier Warehouse Management System (WMS) with multiple docking bays equipped with dock levellers and electric doors to facilitate flush docking and load/discharge. We also provide billable ancillary services that include consolidation, labeling, shrink-wrapping, palletizing, bundling, boxing, taping and other related functions.

Our packing & removals department offers a value added service to our diversified clientele. This service is useful if you are shifting from one premises to another or simply want us to pack and move your freight to your designated location. Our professional & friendly packing staff is trained to use only the most efficient

packing materials such as bubble wrap, corrugated sheet, 5-ply cartons and heavy duty industrial tape. Storall also provides free-of-charge survey of your household or business which allows us to accurately assess the materials needed so that an economical quotation can be quickly made for your approval. We pack for local as well as international moves. Our multilingual staff are also available on Fridays.

Storall offers storage solutions to both businesses and individuals. What is the percentage breakdown for the two categories? Traditionally in other countries like the USA, Europe or Australia, the bulk composition of self-storage users is usually individuals. Here in UAE we have a slightly different breakdown due


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to the nature of its bustling and unique economy. Individuals make up the majority of the clients as far as a number count. However, the footprint that SMEs and institutional clients occupy comprises over two thirds of the total leased self-storage space.

What is the demand for the kind of services offered by Storall and are you able to keep pace with the demand? We have seen demand increase over recent years. With that said, we have been constantly expanding our facilities so that our capacity in-take is able to meet the rising market demand over the past 8 years that we have been in operation.

How did Storall fare in 2014 & what is your outlook for 2015?We continue to develop plans that involve opening additional Warehousing and Self-Storage facilities in different locations of which some should come online within the end of this year / early next year in Jebel Ali, Al Quoz and eventually Abu Dhabi.

What challenges confront Storall presently and possibly in the future? Thankfully, we have been able to overcome challenges such as the economic downturn of 2008. As a matter of fact, we are fortunate to have operated with favourable bottom line figures despite the recession due to our diversified revenue streams and our lean and agile business model.

We also hope soon the other GCC members adopt a more unified zoning system regarding leasing regulation to facilitate multi-faceted storage providers such as our company to open in different countries in a more seamless manner.

What are your expansion plans for the future for the UAE & GCC? Apart from Dubai where else can one avail of Storall services?As mentioned, we are opening in different locations within the UAE. We also are now in a position to franchise the business to others – wherein we have several parties in the MENA /GCC region approaching us with keen interest in that regard.

How do you ensure security of stored items particularly prized possessions and personal belongings?Only authorized customers can enter the self-storage facility via computerized access through the gate or into the rooms. Key operated electric roll shutter doors offer security and privacy of our warehouses. The

premise is completely canvassed through an intricate surveillance system of cameras and monitors with access points, securing and monitoring the premise 24/7.

In addition to having the Self-Storage facility open daily between 8 am to 8 pm, access is also available beyond these hours if clients call within a reasonable notification period, effectively making Storall’s Self Storage facility available to its clients 24/7.

How does the retrieval process work for personal storage—can items be taken out & then re-deposited like in a bank locker or safe deposit vault?By definition, self-storage is generally a self-service operation. Different individuals or companies manage their own belongings by accessing their rooms whenever they need to. The facility is designed specifically to allow ease of access whether through the usage of our loading and unloading area, trolleys, or our heavy duty lifts that service the different levels. Moreover, if clients require the usage of our material handling and/or our labor, we are more than happy to oblige.

What is the nature of industrial goods stored at Storall? We handle all kinds of goods and materials as long as they do not fall under the hazardous materials category.

What is your relationship with the A&H (Abdullah & Hamad) Al Ghurair Investment Group? A&H Al Ghurair Investment LLC is our mother/holding company. Storall is among 30+ different subsidiaries & JV’s within the group. A&H has companies in various business sectors amongst them: construction, contracting, fashion retail, nutrition, fast food franchising, advertising, trading, education, hospitality, logistics and more.

As a pioneer, how is Storall maintaining its edge over the competition? We have geared ourselves to continuously align our business operation, structure, resources and capabilities with our strategy – to maintain our competitive advantage in the market. Aside from our ‘one-stop-storage-shop’ business model, which differentiates Storall from other storage providers in the region, we have been keen to identify our clients’ needs throughout the years and introduce additional services to meet them, as in auctions.

We continue to introduce other services that are planned to go online soon that include upcoming cold & chilled storage facilities.

S T O R A G E S O L U T I O N S


How did Khalifa Port fare in 2014 in terms of annual throughput in TEUs—incoming, outgoing and transshipment and how does that compare & contrast with corresponding 2013 (and 2012) figures?Abu Dhabi Ports’ flagship Khalifa Port had a very successful 2014. The Khalifa Port Container Terminal (KPCT) which is operated by Abu Dhabi Terminals (ADT) handled more than 1 million TEUs (twenty foot equivalent units / containers) in one year - a record for the Emirate, with the total number of containers reaching 1,137,746 TEUs. This equates to a 26% year on year increase, when compared to 2013.

The quarterly performance increased steadily with Q4 recording 33% of the annual throughput. Overall the second half of 2014 saw a significant growth and accounted for 60% of the annual volumes at Khalifa Port.

At present, ADT’s container terminal operation is achieving a crane productivity

of no less than 34 gross moves per hour (gmph), which marks an increase of 36% since September 2012, when the port commenced operations and showed an overall crane productivity of 25 gmph. This claimed Khalifa Port fifth in port productivity ranking in the EMEA region by the Journal of Commerce (JOC) last year.

In November last year, Abu Dhabi Ports hit a further milestone for port productivity and reached a truck turnaround time of just twelve minutes, making the container terminal the most efficient one in the region.

What is the current handling capacity & activity at Khalifa Port?Khalifa Port is being developed in phases. The first phase of Khalifa Port, officially inaugurated on 12.12.12 by the President of the UAE, HH Sheikh Khalifa Bin Zayed Al Nahayan, can handle an annual capacity of 2.5 million TEUs and 12 million tons of general cargo. When all development phases are complete, Khalifa Port is expected to increase its capacity for container volumes to 15 million TEUs and 35 million tons of general cargo per year.

At the beginning of this year (2015), Abu Dhabi Ports successfully completed the move from Zayed Port’s Roll-On and Roll-Off (RORO) cargo to Khalifa Port, which has an enhanced yard and terminal facility to handle the Emirate’s growing RORO business. Today, Khalifa Port RORO hub

can handle up to four vessels at a time.The RORO import and export activities

at Khalifa Port serve Abu Dhabi and the UAE. The port’s enhanced facilities also cater for RORO transshipment for the wider Gulf region, facilitating a more competitive and therefore customer-friendly market.

Today, Khalifa Port Container Terminal (KPCT) attracts several major shipping lines serving Abu Dhabi gateway with weekly direct calls to over 50 destinations worldwide. This is a key element in making Khalifa Port a competitive gateway option for trade.

How is Khalifa Port equipped in terms of port equipment & machinery—container cranes Panamax, post-Panamax & Super-Panamax?Khalifa Port is the first semi-automated port in the Gulf region and one of the most technologically advanced ports around the globe. It currently features nine super-post-Panamax cranes with an outreach of 65m (22 containers) and a lifting capacity of 90 tons. The cranes are some of the largest ship-to-shore quay cranes in the world today. In addition, Khalifa Port features 42 of the latest automated stacking cranes (ASCs) and 20 straddle carriers. As the business demand increases, more equipment will be ordered to cater to this increase.

Abu Dhabi Ports has invested in the latest equipment to ensure cargo are handled in the most efficient and safe environment

K H A L I F A P O R T R I S E S

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Capt. Mohamed Juma Al Shamisi


across various operations across the entire port.

In 2013, Abu Dhabi Ports introduced the ‘e-Pass’, an electronic pass, which significantly reduced processing and waiting times for customers entering and exiting Khalifa Port.

The pass offers customers the opportunity to register and submit documents online. It also offers different gate pass applications, online status tracking and a dedicated mobile application, adding further long-term value to Abu Dhabi Ports’ flagship port.

Last but not least, at the beginning of commercial operations, Abu Dhabi Ports instigated the use of RFID (radio frequency ID) tags for the freight trucks using the port, to make their entry to and exit more convenient and to enabling quicker turnaround times.

What are your expansion plans for Khalifa Port?Khalifa Port is being developed in phases as trade and industry demand increases. Khalifa Port and the Khalifa Industrial Zone (KIZAD) are intrinsically linked, providing optimum supply chain connections and efficiencies. While Khalifa Port provides an excellent shipping network with market access to 4.5 billion people within four time zones, the industrial zone offers an unprecedented intermodal connectivity supported by road links, its close proximity to airports and built in infrastructure for the

future rail. One of the industrial zone’s anchor

tenants is EMAL with whom Abu Dhabi Ports has signed a ten-year agreement starting in 2014 for the handling of aluminium finished products at the EMAL cast house in KIZAD and containerization at Khalifa Port. Parallel to these gateway developments Khalifa Port is also attracting increasing transshipment volumes and over time expects to grow substantially as a hub for major shipping lines.

What is your outlook for 2015? The container and RORO business at Khalifa Port is very healthy and cargo volumes will continue to grow significantly as trade and industry demands grow.

In addition, the bulk business will continue to see good volumes with the second phase of EMAL’s smelter now online.

This will double the production volumes to 1.4 million metric tonnes per year from 2015 onwards.

Abu Dhabi Ports is currently widening the approach channel into Khalifa Port’s port basin to allow for dual traffic and support the port’s increasing import and export activities.

Furthermore, there is a growing number of investors who are in the process of setting up their businesses in the Khalifa Industrial Zone which will lead to additional cargo throughputs.

Last but not least, Abu Dhabi Ports is currently in discussions with potential business

partners to attract investments into KIZAD using Khalifa Port as the gateway to global markets. What opportunities & challenges do you foresee for Abu Dhabi Ports for the future?One of the biggest challenges of the maritime industry, is the fact that numerous entities are involved in import and export trade activities, making communication and coordination procedures difficult.

Against this backdrop, Abu Dhabi Ports recently launched the “Maqta Gateway” project. It is a cutting edge, innovative port community system that offers new business opportunities by interlinking all of the relevant parties involved in Abu Dhabi’s growing import and export trade business, while significantly enhancing processing times as well as communication procedures.

As part of the system’s launch in December 2014, Abu Dhabi Ports signed a Memorandum of Understanding (MoU) with the Ministry of Environment and Water (MOEW), Abu Dhabi airports, Abu Dhabi Food Control Authority (ADFCA), Abu Dhabi Customs Administration (ADCA), Etihad Rail and Abu Dhabi Terminals (ADT).

Alongside its state-of-the-art infrastructure, one of Khalifa Port’s biggest advantages is its ability to expand to serve market demand. This offers Abu Dhabi Ports a great flexibility in terms of service offerings and provides excellent opportunities to cater for the individual needs of shipping lines and agencies.

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CAPT. MOHAMED JUMA AL SHAMISI, CEO, ABU DHABI PORTS, RESPONDED TO A QUESTIONNAIRE BY LOGISTICS NEWS MIDDLE EAST


D P W O R L D

How did the DP World Jebel Ali fare in 2014 in terms of annual throughput in TEUs—incoming, outgoing and transshipment?Jebel Ali delivered another record year in 2014 handling 15.2 million TEU (twenty foot equivalent container units), representing year on year growth of 11.8%.

We usually don’t breakdown our throughput, however we have noticed an increase in Origin & Destination (O&D) cargo in the UAE, which is a positive indicator for the local economy.

Jebel Ali is the flagship terminal in the region driven by the O&D cargo handled in Dubai. It has unparalleled connectivity and we continue to focus on delivering our customers the most efficient container handling service whether it be for O&D or transhipment volumes.

How does that compare & contrast with corresponding 2013 figures?

In 2013, Jebel Ali and our UAE terminals delivered a record throughput of 13.6m TEU, increasing from 13.3 million TEU in 2012.

What is the current handling capacity & activity at DP World Jebel Ali?

Jebel Ali Port has unparalleled sea connectivity, with 90 plus weekly services to over 140 ports worldwide. It has intermodal connectivity, by sea, land and air, and can handle break-bulk, bulk, roll on - roll off cargo, livestock and all other general cargo.

We are adding new capacity at Jebel Ali Terminal 3 to ensure we are well placed to handle future capacity demand in Dubai. As the world’s largest semi-automated facility featuring state-of-the-art remotely controlled cranes it will further enhance our efficiency and capabilities.

This new capacity at T3 is expected to come on line in the second half of 2015, taking total

capacity at Jebel Ali Port to 19 million TEU, from 17 million capacity today.

How is DP World Jebel Ali equipped in terms of port equipment—container cranes Panamax, post-Panamax & Super-Panamax & other machinery?Jebel Ali port has the most modern infrastructure, equipment and technology to ensure the best efficient services and to help DP World customers realize the benefits of scale the new, larger vessels bring. With the latest technology we bring to our operations and processes and providing a range of services via smartphone mobile applications, Jebel Ali is now considered one of the world smartest ports.

The three Container Terminals at Jebel Ali are equipped with a total of 26 berths and 87 cranes to cater to the world’s largest container vessels. The facility can accommodate ships of any size in existence and on the order book.

R I D I N G T H E C R E S T

O F T H E G R O W T H

W A V E

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Sultan Bin Sulayem


What advantages does DP World Jebel Ali offer and what hinterland does it serve? Jebel Ali is the heart of an integrated multi-modal hub, including Jebel Ali Free Zone Dubai World Central, Dubai Industrial City and Dubai World Central (Al Maktoum Airport). This unique platform offers sea, air and land connectivity complemented by logistics facilities.

As the most efficient port in the region, Jebel Ali Port also provides importers and exporters with an efficient one-stop shop for all their cargo handling needs.

Other ports in the region will play their roles as gateways to the cities and countries they serve. We welcome the upgrading of regional port infrastructure as this will benefit the regional supply chain and increase the competitiveness of our region.

Jebel Ali is ranked the world’s most productive according to the 2014 port

productivity report of the respected US-based Journal of Commerce (JOC). The ranking is based on the average moves of containers per ship, per hour, as reported by shipping lines themselves, representing more than 75% of global vessel capacity.

What is your outlook for 2015? It’s still very early to comment but we have seen a good start to 2015 volumes. Our flagship Jebel Ali port has made a good start to the year.

An additional capacity of 2 million TEU will raise the total capacity of Jebel Ali to 19 million TEU in the 2nd half of the year.

What opportunities & challenges do you foresee for the DP World Jebel Ali for the short & long-term futures?The ultra large container vessels that are increasingly coming into service now are one of the biggest challenges for the industry. On

the one hand, they help shipping lines to reduce unit costs, but they also require the port industry to invest in longer berths, deeper drafts and bigger cranes to translate on-water economies of scale to land.

And there is a knock on effect that impacts all ports: as the giant 18,000 TEU capacity vessels join the world fleet, slightly smaller vessels are redeployed into routes not usually served by large vessels. It is up to us to meet and adapt to change and to serve our customers in the locations where they want us to be.

Jebel Ali is one of the few global ports been able to handle as many as six mega container ships at one time in its terminals 1 & 2.

With its 21st Century infrastructure and 18 metre draft, Terminal 3 is the world’s most modern container terminal and gives Jebel Ali the ability to handle up to 10 of the new generation mega vessels at the same time across all the three terminals.

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SULTAN BIN SULAYEM, CHAIRMAN, DP WORLD, RESPONDED TO A QUESTIONNAIRE BY LOGISTICS NEWS MIDDLE EAST


How did the Port of SOHAR fare in 2014 in terms of annual throughput in TEUs—incoming, outgoing and trans-shipment?Container throughput grew 58 percent last year, which is fantastic when you think this traffic from Muscat was only transferred in August. With a full year of combined traffic ahead, we are expecting this figure to grow even more. It was a great year for break bulk which increased 51 percent; the total cars handled at the general cargo terminal doubled.

How does that compare & contrast with corresponding 2013 (and earlier) figures?

In 2014, SOHAR handled 60 million gross tonnage (GRT) of cargo, compared with fifty-three million in 2013, fifty-one in 2012, and thirty-one million in 2011. The number and size of the vessels calling at SOHAR is also growing. Last year, we welcomed for the first time, 2,000 ships in a calendar year. In 2007, the number of vessels was just 556. We also welcomed the first 10,000 TEU ship to call at the port, and expect more to follow.

What is the current handling capacity& activity at Port of SOHAR?SOHAR has a handling capacity of 1.5 million TEU at the container terminal. Flexible systems at the six deep water berths operated by Oiltanking Odfjell provide the capacity to unload liquid bulk – clean petroleum, petrochemical, and gas products – at 3,000 cubic metres an hour, or in other words, almost a cubic metre every second.

The total capacity at Oiltanking Odfjell is currently set at around 1.3 million cubic metres. Deep water jetties at SOHAR also serve Brazilian iron ore giant Vale, while the

general terminal is capable of adapting its capacity depending on the cargo. Last year, it handled hundreds of thousands of cars, among other things. Last, but by no means least, the US$170 million agricultural terminal – Oman’s first terminal dedicated to food – will accommodate in the region of one million tonnes of raw sugar imports and up to 700,000 tonnes of grain.

How is Port of SOHAR equipped in terms of port equipment—container cranes Panamax, post-Panamax & Super-Panamax & other machinery?The latest addition is a 100MT HMK 6407 Gottwald crane. This arrived at SOHAR just a few weeks ago and increased the lifting capabilities of C. Steinweg Oman from 80MT. It joins two mobile rubber tyre shore cranes, a fleet of forklifts with lifting capacities of three to thirty tonnes; several reach-stackers, terminal tractors, and container trailers.

At the Oman International Container Terminal, three new post-Panamax quay cranes and 14 rubber tyre gantry cranes now tower over the dockyard, adding to the four cranes already at the terminal. This was the result of an US$130 million expansion project in 2014.

What advantages does Port of SOHAR offer and what hinterland does it serve? SOHAR has a number of unique selling points, not least of which is its strategic position outside the Strait of Hormuz. This means ships can access the Gulf without having to pay the added costs of entering it, and with the addition of key rail, air, road, and sea links, the cost of doing business at SOHAR will be reduced as volumes grow.

Edwin Lammers

EDWIN LAMMERSEXECUTIVE

COMMERCIAL MANAGER, SOHAR

PORT AND FREEZONE

Edwin Lammers is a prod-uct of HZ University, one of the Netherlands’ leading universities for applied

sciences. As the Executive Commercial Manager for one of the world’s largest port development sites,

Lammers is charged with managing and overseeing the commercial interests of both land and marine

operations at SOHAR Port and Freezone, in Oman. He has drawn on almost two decades of experi-

ence gained at some of the world’s busiest port and

terminal operations in his native Holland, to build a robust network of cargo

flows, manufacturing, and logistics. He joined Port of

SOHAR in 2009.

O U T P U T A T P O R T O F S O H A R S O A R SEDWIN LAMMERS, EXECUTIVE COMMERCIAL MANAGER, SOHAR PORT & FREEZONE, OMAN RESPONDED TO A QUESTIONNAIRE BY LOGISTICS NEWS MIDDLE EAST

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Over 90 % of the total trade in this world is carried by sea (IMO estimates). Ocean trade therefore constitutes an overwhelming and very significant share of international trade.

Ports thus play a major role in determining the course of world trade. The last two decades have seen the rapid development of ports worldwide in general and the GCC in particular. We have witnessed the spectacular rise and developments of such large, busy and iconic ports as Dubai’s DP World Jebel Ali Port; Abu Dhabi’s Khalifa Port and Mina Khaled & Khorfakkan in Sharjah; Jeddah Is-lamic Port; Dammam’s King Abdul Aziz Port, Jubail Commercial Port and ports in Ras Tanura and Yanbu along with the new, emerging King Abdullah Port on the Western Red Sea coast in Saudi Arabia.

Add to that the flourishing ports of Oman (Sohar, Salalah and Duqm); Kuwait (Shuwaikh), Qatar (Doha, Umm Sa’id-Meesaid) and Bahrain (Mina Salman) and we have a mix of ports that are well endowed, thriving and importantly getting bigger and better thanks to huge multi-billion dollar investments in this arena.

In this edition of our ‘Port of Call’ report, we examine the top three ports in the Lower Gulf—Dubai, Abu Dhabi in the UAE & the fast-developing Port of Sohar along the Batinah coast in upper Oman.

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P R O F E S S I O N A L P E R S P E C T I V E S .....................................................................................................................P R O F E S S I O N A L P E R S P E C T I V E S .....................................................................................................................

Prakash ‘ PK ‘ Menon,Executive Director,Thought Leaders Middle East

Internationally acclaimed speaker, thought leader,

author and mentor Prakash ‘PK’ Menon is the Executive Director, ‘Thought Leaders Middle East’ and one of the

world›s most respected supply chain experts and leadership

authorities.

Menon, a regular contributor to Logistics News Middle East, has authored three

bestselling books, ‘Driven’, ‘Fail Smart’ and ‘Supply

Chain is Sexy’, all of which continue to inspire both neo-entrepreneurs and

established business leaders.

Prakash ‘PK’ Menon helps entrepreneurs, retailers,

corporate professionals, CEOs and aspiring business owners, speakers and mentors achieve

world class results and financial independence.

FOCUS ON THE

Apple founder and former CEO, the late Steve Jobs was almost as famous for some of his controversial beliefs and practices as a leader as he was for leading one of the world’s most successful brands.

For starters, he unapologetically admitted to never commissioning market research. Instead he would make it a point to get to know his customers and the way they tick by going out into the field to observe and interact with them. Secondly, Jobs made it clear to all Apple staff that the company’s goal wasn’t to make money.

It was to design, develop and bring to market great products. In Jobs’ words, “We trust as a consequence (of delivering great products) that people will like them, and as another consequence we’ll make some money.”

In other words, Jobs’ goal as Apple’s leader was to serve and deliver efficiencies and benefits like no other. And in so doing, the money rolled in. So what can supply chain and logistics leaders (or any leader for that matter) learn from these messages?

A tricycle relies on three wheels to move efficiently and stay balanced. But to prevent the tricycle from toppling over

it must have two small wheels at the rear and a larger single wheel at the front to counterbalance the other two.

Similarly, any product or service oriented business relies on three ‘wheels’ to operate efficiently and effectively – Product / Service Development (Control) and Operational Excellence (Costs) are the two equally important wheels at the rear, while Customer Service (Relationships) is the large wheel at the front that enables the business to keep moving forward in a balanced, efficient way.

VICTOR OR VICTIM?Too many supply chain and logistics leaders believe that their role is to focus on the rear wheel (backend) functions only. They believe that the front-end customer service functions have nothing at all to do with them.

And the same is true in reverse in that those responsible for the shop floor and other ‘front of house’ activities fail to consider the importance of the back-end in dramatically improving customer service and brand loyalty.

When both ends operate in isolation from the one another (or in ‘silos’ as I call it), the result can be detrimental to

workplace culture company-wide, which then has a negative impact on customer loyalty, which further flows on to impact negatively on the company’s bottom line. For instance, employees exhibit a tendency to deflect blame onto others when they feel helpless and disempowered. This prevents stakeholders from taking ownership of their own challenges, responsibilities and work, which eventually leads to a ‘victim mindset’ spreading like wildfire throughout the company, usually from the bottom all the way up the chain. The worst part about all of this is that customer service is negatively impacted. Not only are inefficiencies obvious on the shop floor, but customers will often also sense the disharmony.

Don’t compete, collaborateWhen juggling (as leaders often do), if the right hand doesn’t know (or care about) what the left hand is doing, then the result will be chaos. It is important to understand that no one thing happens in isolation of another in business just as no part of the business is more important than another. It’s about working collaboratively. Imagine what would happen in an orchestra

‘BIG

WHEEL’

MONEY WILL COME


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if the pianist felt he or she was more important than the percussionist and tried to dominate during a concert. The entire orchestra would fall out of sync and fail to deliver the musical piece as intended by the composer. It is the conductor’s role to synchronize and coordinate all the musicians to ensure the result is seamless, coordinated and most importantly, delivers what the audience paid to experience. Similarly in business, for things to run in a smooth, coordinated and customer focused way, the left hand must always know (and facilitate) what the right is doing.

Make serving the customer more important than making money

This is a twist on the

company missions of old. Where a typical company mission statement used to read something like – ‘Be the leading supplier in the country’, today it is better to commit to ‘Delivering the best product to suit our customer’s needs and wants’. Or instead of having a mission to ‘Save $x in company expenditure through the delivery of greater workplace efficiencies’, it would be better to strive to ‘deliver better customer service and improve our loyal customer base by delivering what they want, when they want it and in the way they like it.”

Walk the floorDon’t let complacency get in the way of efficiency and a focus on customer service. Walking the floor and chatting to staff in the

distribution centres, on the shop floor, in the cafeteria, in the cleaning and security division (in other words, in all divisions of the company) serves three main purposes: It allows you to observe what’s going on at the coal face, It allows you to see things from a different perspective (things you couldn’t possibly see through the walls of your office), and. It allows you to build positive relationships with your staff, which helps them feel valued.

Talk the walkWe’ve all heard of ‘walking the talk’. But just as important is a leader that ‘talks the walk’. By this I mean leaders that have the ability and commitment to communicate the company vision persuasively, charismatically and articulately

in order to gain buy in from their team. This isn’t about telling them what’s happening and what they must do. It’s about opening your heart, speaking with conviction and inspiring them to share your excitement to the point where they want to commit to action.

The bottom lineIf you want your supply chain and logistics department to be a core strength that drives your business, you must become a supply chain and logistics leader worth following – one who observes, listens, engages and influences as opposed to one who believes that ruling, dominating and conquering are the way to go. Greater efficiencies, stronger brand loyalty and an improved bottom line will be the consequence.

“If you want your supply chain and logistics department to be a core strength that drives your business, you must become a supply chain and logistics leader worth following – one who

observes, listens, engages and influences as opposed to one who believes that ruling, dominating and conquering are the way to go.”

MONEY WILL COME

ONE OF THE FASTEST-GROWING FREE TRADE ZONES IN

THE UAE, THE RAK FTZ PROVIDES COMMERCIAL, GEN-

ERAL TRADING, CONSULTANCY, INDUSTRIAL LICENCES

AND A HOST OF RELATED SERVICES TO COMPANIES

WISHING TO SET UP BUSINESSES.

IT HAS FOUR SPECIALIZED ZONES

CUSTOMIZED TO SUIT INDIVIDUAL

INVESTORS IN LINE WITH THEIR

SPECIFIC REQUIREMENTS.

The strategically located Ras Al Khaimah Free Zone Authority (RAK FTZ) in the UAE’s most northerly Emirate is home to over 8,000 registered companies from over 100 countries. It constitutes the doorway to the emerging markets of a hugely promising & potential-laden hinterland comprising the economically vibrant GCC states, the Levant, the wider Middle East, the African continent, the CIS nations and the vast Indian subcontinent.

The Free Zone includes a Business Park for office clients; an Industrial Park for heavy manufacturing; a Technology Park for technology, trading and light manufacturing businesses and an Academic Zone for educational institutions.

Ramy Jallad, Chief Commercial Officer, RAK FTZ, met Logistics News Middle East for an exclusive interview on a wide range of issues and for the lowdown on developments in this rugged, verdant yet picture postcard-beautiful Emirate.

Please bring us to speed on the current speed and scale of new company registrations in RAK FTZ?Ras Al Khaimah Free Trade Zone (RAK FTZ) is a cost-effective gateway to fast-growing markets across Europe, North Africa, the Middle East and South Asia. It is home to more than 8,000 companies from over 100 countries, across more than 50 industry sectors. Within close proximity to Dubai, RAK FTZ is completely tax-free and provides 100 per cent foreign ownership, top-notch facilities, fast-track visas, freedom to source labour globally and ongoing business support services.

Importantly, RAK FTZ provides these benefits at a substantially lower cost than free zones in other emirates, allowing clients to maximise their return on investment. Our offices and warehouse space are less expensive, land is less costly, and the overall cost of living and doing business in RAK is up to 50% less than the UAE average.

We make it as easy as possible to establish a business in the UAE, with fast-track licensing and registration, fast-track investor and worker visas, freedom to source labour and materials from around the world and ongoing business support services such as advertising, procurement, event management, recruitment and training assistance.

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For over 130 years, Drake & Scull International PJSC has been shaping skylines and transforming the lifestyle of communities around the world.

Drake & Scull is an industry leader, with a proven history of delivering more than 700 projects through its General Contracting, Engineering, Rail, Oil & Gas, Water and Wastewater Treatment and Infrastructure development business streamlines across the region.


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RAMY JALLAD, CHIEF COMMERCIAL

OFFICER, RAK FTZ AUTHORITY

Ramy Jallad oversees all profit-making operations at RAK FTZ and is responsible

for the strategic planning and business development

of the free zone.

Jallad works closely with the Marketing team to tactically promote RAK

FTZ, with the Business De-velopment team to attract clients, and with the Client Relations team to build and strengthen the free zone’s relationships with its more

than 8,000 companies.

Jallad, with over 24 years of professional experience, has focused on the develop-

ment, management and operations of commercial and industrial free zone

business parks in the UAE. Earlier, he has also held

senior positions in the Abu Dhabi Airports Company

(ADAC) and the Dubai Technology and Media Free

Zone (TECOM).

Ramy JalladCCO, RAK FTZ

In value terms, how much revenues have been generated from the new companies registered in 2013 & H2-2014 and what is the current level of monetary investments in RAK FTZ?We don’t comment on our revenues, but suffice it to say that RAK FTZ is a profitable enterprise that is doing well enough to fund its own capital expansion projects. For example, in order to accommodate the rising demand for our award-winning services and world-class facilities, we are constructing 100 new warehouses in our Technology Park for clients doing business in trading and light manufacturing.

Also in our plans is the construction of a new office tower in the Business Park that will accommodate more than 700 new clients. As we continue to grow rapidly, attracting top companies from markets around the world, the additional world-class offices and quality warehouses are needed to accommodate them.

From which countries and geographies are the new investments coming from and where is your focus?RAK FTZ is attracting companies from all over the world. The free zone has traditionally focused its efforts on attracting investors from the Middle East, Europe and South Asia. This is reflected in the international promotion offices that we have in India, Turkey and Germany. Today over 80% of our clients are from these three regions.

We now have a focus on East Asia, a very large potential market. The free zone has been organising seminars and making presentations to potential investors in South Korea, China and Southeast Asia, among other countries. We made two trips to Malaysia last year. We also held our first full-scale roadshow in Beijing, in cooperation with the UAE Embassy and Chinese Government authorities.

We are also hosting delegations from East Asian countries to let them see our top-notch facilities. Earlier this year, a delegation from South Korea was impressed by the free zone’s flexi facilities as

incubators for start-up businesses, as well as our warehouses and land for development. HH Sheikh Ahmad Saqer Mohamed Al Qasimi, the RAK FTZ Chairman and I travelled to South Korea a few months ago to meet with the senior Seoul National University Hospital Management.

We also recently hosted a delegation of 20 senior executives from some of the largest companies in China. We went to the US recently to meet with multipliers and potential investors. We also held a marketing roadshow in Brazil and in the Philippines and we hope to travel to Italy, Canada and Australia in the coming months.

What is the percentage of supply chain & logistics companies currently registered with RAK FTZ and how important is this sector for RAK FTZ?Because of its strategic location, RAK FTZ offers numerous logistical advantages for any company that wants to reach dynamic markets in Africa, Europe, the Middle East and South Asia. The advantages include:

Close proximity to the emirate’s five sea ports, including Saqr Port, the largest bulk commodity port in the Middle East as well as the Ras Al Khaimah International Airport. Our location is less than an hour’s drive from Dubai International Airport (along super-highways E311 and E611)

Half the planet’s population, producing a tenth of the world’s GDP, is within four hours flight time. Three quarters of the world’s population, producing more than half the world’s GDP, is within eight hours flight time. Currently, there are 15 companies in the free zone that list themselves as ‘logistics’ clients. However, a majority of RAK FTZ’s more than 7,500 clients are taking advantage of the logistical benefits that we offer.

What was the message to the recent RAK FTZ investment forums in London and the US?Our message to those who attended the forums in London as well as the multipliers who met with us


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in the US was essentially this: that choosing the right location can be a critical decision which determines the success or failure of a business, and that RAK FTZ is uniquely suited to facilitate successful set up of new businesses and company subsidiaries.

We also shared the benefits of setting up shop at RAK FTZ, which allows 100 per cent foreign ownership, full repatriation of capital and profits, and full tax exemption to investors. RAK FTZ has flexible business centre facilities, offices, warehouses and land for lease across four specialised free zone parks.

RAK FTZ has been recognised not only by our clients, but also by Financial Times› fDi Intelligence as one of the fastest, most business-friendly free zones in the UAE. In October, fDi Magazine, a Financial Times publication, recognised RAK FTZ for offering an excellent mix of location, valuable incentives, value for money, quality facilities and ease of doing business.

RAK FTZ provides a safe, secure, flexible, and cost-effective investment environment. We welcome investors from around the world to join us in our ongoing and future success. How are you maintaining growth momentum at RAK FTZ and what briefly is your expansion strategy? How are you attracting

new investments?It is worthy of note that RAK FTZ is not only a hub of the manufacturing industry, but is also expanding into sectors beyond its traditional core market. This will bring the free zone closer into alignment with the vision of HH Sheikh Saud Bin Saqr Al Qasimi, the Ruler of Ras Al Khaimah, to diversify the economy of the emirate.

RAK FTZ’s focus is expanding into the services and educational industries and, with the opening of Sheikh Khalifa Specialist Hospital – Ras Al Khaimah, the largest specialist hospital in the Middle East, at the end of this year, RAK FTZ will be able to create synergies with the healthcare industry as well.An example of a key services sector that is also ripe for expansion in Ras Al Khaimah is back-office services such as IT, HR, accounting, document processing, order fulfilment and call centre support.

Additionally, RAK FTZ’s Academic Zone is enhancing the emirate’s reputation as an emerging hub of educational institutions, and this will also benefit Ras Al Khaimah’s economic development. Educational institutions and economic development go hand in hand, as we train the next generation of leaders in the work force. For example, we are looking for institutions that provide hospitality

training that will link up to jobs in RAK’s rapidly growing tourism sector.

One of the other key focus areas, as mentioned above, will be the healthcare industry. There are many synergies between the academic and healthcare sectors. Sheikh Khalifa Specialist Hospital, built by the UAE Government, will create an epicentre for additional healthcare facilities, and these centres naturally link well with educational facilities. There will be nursing schools, laboratories, wellness facilities and others.

How important is Corporate Social Responsibility (CSR) arena for RAK FTZ and what specific initiatives are being taken in this regard?At RAK FTZ, we understand our moral responsibility to make a positive impact on the community in which we live and work. That is why we launched a Corporate Social Responsibility (CSR) Programme that we closely associate with community service organisations and charitable institutions around the world.

Our commitment is evidenced by our participation in a number of charitable events and causes, including the RAK Terry Fox Run, Al Saqr Charity Foundation and Human Appeal International among others.


The winners of the 7th Annual E-Services Excellence Awards (ESEA), held under the Royal Patronage of HH Sheikh Maktoum

Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai, were recently announced by Dubai Trade, the premier cross-border trade facilitator, at a glittering ceremony recently held at the Ritz Carlton, DIFC-Dubai. The ESEA is Dubai Trade’s annual flagship event that honours and recognises the best performers from the trade and logistics community for their role in adopting e-Services.

High-profile attendees included Abdullah Al Saleh, Undersecretary, Foreign Trade and Industry Sector at the UAE Ministry of Economy; HE Jamal Majid Bin Thaniah, Chairman, Dubai Trade; Mohammed Al Muallem, Senior Vice President & Managing Director, DP World - UAE Region and Board Member, Dubai Trade; HE Ahmed Mahboob Musabih, Dubai Customs Director; Ibrahim Mohamed Al Janahi, Deputy CEO, JAFZA & Chief Commercial Officer, Economic Zones World and Eng. Mahmood Al Bastaki, CEO, Dubai Trade, alongside senior government and federal officials, dignitaries, sponsors, Dubai World business units, supply chain representatives, the trade and logistics

community and the media. The keynote address was delivered by HE

Jamal Majid Bin Thaniah, Chairman of Dubai Trade. “Dubai has a vision of becoming a smart city and the adoption of e-services is integral to our development.

More efficiency, lower costs and faster customer service are all benefits that technology brings to both supplier and customer and the reputation of Dubai as a centre for technology and innovation is also reinforced.

The Logistics sector helps keep trade moving and lies at the heart of the supply chain and our own success,” he remarked.

The nine category winners were selected after shortlisting and evaluation by the Awards Committee, based on criteria that reflected the winners’ adoption of e-Services on the Dubai Trade Portal during 2014 measuring transactions for key services and the number and volume of transactions.

Awards of appreciation were also given to customers who have pioneered the usage and supported the major two initiatives launched by Dubai Trade, namely Tradeshield, the online cargo insurance platform and Cargo Booking, a service that allows traders and freight forwarders to send cargo bookings to shipping agents.

In his comments at the 7th ESEA Awards

presentation ceremony, HE Abdullah Al Saleh, Undersecretary, Foreign Trade & Industry Sector at the UAE Ministry of Economy, asserted: “Electronic services are an indispensable 21st century tool for driving growth in trade, which is the central pillar of our national economy. Such services play an integral role in providing enhanced and improved facilities by significantly lowering costs, time and effort.”

The CEO of Dubai Trade, Eng. Mahmood Al Bastaki highlighted some of the achievements of the trade community and the robust growth of Dubai Trade to underline Dubai’s recovery from the global recession.

He noted in his address to the audience that online transactions rose to almost 18.4 million, boosted by a significant rise in the total number of registered companies to 105,000, of which more than 15,000 companies had registered in 2014 to use the online services offered through Dubai Trade Portal.

Dubai Trade is the premier trade facilitation entity that offers integrated electronic services from various trade and logistics service providers in Dubai under a single window. The Dubai Trade Portal offers a seamless business flow and has proven to be cost effective for clients using it as the single window which integrates the online services of DP World, Economic Zones World and Dubai Customs.

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D U B A I T R A D E H O N O U R S W I N N E R S O F T H E 7E S E A AWA R D S

T H

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FREE ZONE C

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PANY OF THE YEAR

A GROUP PICTURE OF THE AWARDEES WITH OFFICIALS

FROM DUBAI TRADE & OTHER DUBAI GOVERNMENT

INSTITUTIONS


THE 9 WINNING ORGANISATIONS FOR THE 7TH ESEA AWARDS (2014)

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NAFFCO

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PANY OF THE YEAR

CLEARING AGENT OF THE YEAR

GREENPORT SHIPPING AGENCY FOR:

— GENERAL CARGO

EMIRATES GLOBAL ALUMINIUM FOR:

DANZAS AEI EMIRATES FOR:FREIGHT FORWARDER OF THE YEAR

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ENGR. MAHMOOD AL BASTAKI, CEO, DUBAI TRADE, ADDRESSES THE GATHERING AT THE 7TH ESEA AWARDS PRESENTATION CEREMONY

TRANSWORLD SHIPPING & LOGISTICS FOR: SHIPPING AGENT OF THE YEAR —CONTAINERIZED CARGO


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In the case at hand the consignee of the goods had not taken steps to clear the consignment. Hence the Port Authorities issued notices to the consignee and then resorted to their remedy to publicly auction off the goods. However despite provisions in the Port Trust Authorities Act, 1963, wherein the auction may take place after a lapse of 60 days of landing the Port Authorities finally auctioned the consignment only after the expiry of four years.

INTERPRETATION OF THE LAW The steamer agent’s argument was that the provisions of the Major Post Trust Act of 1963, impose no statutory liability on them to pay the said charges to the Port Trust Authorities. They further argued that they did not fall within the definition of “Owners” under Section 2 of the Act. As the said definition has no mention of the owner of the vessel or the steamer agent, thus the liability imposed by the Port Authorities was illegal and unjust.

The Port Trust Authority however took the contention that there existed a relationship that of a bailer and bailee between themselves and the agent from when the goods are delivered to the Authority till the point when the said goods are duly endorsed to the consignee by way of transfer of the bill of lading.

India’s Supreme Court after considering the arguments and the decision of the High Court took a more understanding view towards, the contention of the Port Authority.

They relied on the decision in a previous case which held that once the bill of lading is endorsed or the delivery order is issued to the consignee or endorsee, it is then that the

consignee would be liable to pay the demurrage charges and other dues of the Port Trust authority. This would then impose liability on the Steamer Agent for such charges, till such time that the bill of lading is indorsed or delivery order is issued by the Steamer Agent

IMPLICATIONS OF THE DECISIONThe Decision of the SC to quash the appeal preferred by the Steamer agents will undoubtedly have several significant implications on the future of consignment shipping and storage transactions, in similar circumstances.

As per the interpretation should a vessel owner or their steamer agent fail to endorse the consignment to the consignee or a consignee fail to clear their consignments across the various ports of India, the Steamer agent /vessel owner will be liable for cost incurred due to non-clearance of the same.

Owing to the decision held by the SC, the owners/steamer agents must ensure that all the consignments unloaded onto a Port premises must be cleared by the consignee in time or else they could face arrest of their vessels /sister vessels be the Port Authorities to recover their outstanding.

Thereby ship owners who are often faced with a number of expenses in relation to maintenance and running of their vessels will have to factor in this additional responsibility of clearance of consignments as well.

For now though the decision by the SC has finally put the question of liability of the steamer agent for demurrage and other charges to port authorities to rest, only time can tell of the impact of this decision on the maritime industry.

THE DECISION OF THE INDIAN SUPREME COURT IN A RECENT RULING FIXING THE LIABILITY OF STEAMER AGENTS HAS IMPLICATIONS NOT ONLY FOR VESSEL OWNERS AND STEAMER AGENTS BUT ALSO FOR CONSIGNORS AND EXPORTERS BOTH FROM THE MIDDLE EAST AND GLOBALLY

IMPLICATIONS FOR ME EXPORTERS IN INDIA’S RECENT COURT JUDGMENTBY JOY THATTIL PARTNER, CALLIDUS DUBAI, SINGAPORE & INDIA

Maritime Lawyer by profession, is a senior partner at Callidus

with offices in Dubai, Singapore and India. He specialized in

Maritime Law from the University of Southampton,

UK. Joy Thattil was appointed as a Public Notary by the

Government of India. He is the present Secretary General of Indian Institute of Maritime

Law (IIML).

Joy Thattil Ittoop


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Globe Express Services, a leading provider of comprehensive 3P logistics services, recently revealed that its UAE operations recorded a 7 per cent gross revenue increase in 2014 over the previous year’s figures.

The strong showing was attributed to buoyant domestic demand for modern logistics services on the back of the country’s increasing economic activities.

The company has leveraged on growing opportunities in the market by offering its cutting-edge supply chain solutions to meet the logistics needs of various organizations across several industry verticals. Globe Express

Services’ core specialties of air freight, ocean freight and logistics services deliver globally integrated, tailor-made, end-to-end services to its clients.

“Globe Express Services has achieved a good and consistent growth in 2014 due to its continued improvement in key strategic areas of its UAE operations. We expect to maintain our strong performance this year with expectations of the domestic market further gaining substantial significant growth. Our goal is to consistently meet the rapidly increasing demand for world-class logistics services,” commented Mustapha Kawam, the company’s Managing Director for the Gulf States.

“This 2015, we remain confident in our direction as we plan to invest for more future growth and prepare for new important opportunities buoyed by the steady local economic expansion,” he added.

According to industry and market intelligence sources, the value of the UAE logistics sector is expected to reach US$ 27 billion this year 2015 due to a substantial increase in import and export trade volumes as well as an upward trend in manufacturing activities. The market value in 2013 hit an estimated US$ 23.4

billion, accounting for 6 per cent of the country’s gross domestic product. The UAE’s location, state-of-the-art infrastructures, prudent policies and progressive government are some of the sector’s main growth drivers. In Dubai, in particular, the burgeoning maritime sector is also seen to contribute to the industry’s further expansion in the next few years.

Among the sector’s four key areas, freight forwarding is projected to account for the largest share this 2015 as in the previous years. This will be followed by transportation, warehousing services, and value-added logistics services (VALS).

The UAE’s remarkable growth complements the expansion of the wider GCC market where the international cargo demand is expected to witness a 4.9 per cent increase by 2016 by industry estimates. According to an industry report, the Middle East’s regional freight forwarding sector will expand by 7.8 per cent annually until 2017.

Globe Express Services offers a suite of logistics services to companies doing business in Asia, Europe, the Middle East, North America, Latin America and globally.

G E S — UA E R E P O R T S 7 % H I K E I N 2 0 1 4 R E V E N U E SGLOBE EXPRESS SERVICES PERFORMS WELL IN 2014, OPTIMISTIC ABOUT MAINTAINING THE MOMENTUM AHEAD IN 2015

Mustapha Kawam, Managing Director for the Gulf States, Globe Express Services


Dynamics & Diversity impact Asia’s High-Tech Supply Chains

Mark Millar

Mark Millar provides value for clients through his independent, external

and informed perspectives on supply chain strategies in Asia.

His series of ‘Asia Supply Chain In-sights’ presentations, consultations, seminars and corporate briefings

deliver practical knowledge and edu-cated insights that help companies navigate the complex landscapes in Asia, improve the efficiency of their supply chain ecosystems, develop new business opportunities and make better informed business

decisions. Mark has completed over 350 speak-ing engagements at corporate events, client functions and industry confer-

ences across 23 countries.Author of ‘Global Supply Chain

Ecosystems’ from Kogan Page, Mark is a Visiting Lecturer at Hong Kong

Polytechnic University, is recognized as one of the ‘China Supply Chain Top

20’ and in the USA 2014 listing of ‘Top Pros-to-Know in Supply Chain’.

Mark Millar

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The dynamics of the high tech sector invariably represent both challenges and opportunities for supply chain practitioners—across the spectrum of brands, manufacturers and logistics service providers. Technological developments, market shifts and rapidly changing consumer behaviours make the high tech sector a rollercoaster ride.

EXTERNAL FACTORS IMPACTING AND INFLUENCING HIGH TECH SUPPLY CHAINS Risk Management, Regulatory Compliance and Security are key aspects that have significant impact on supply chain design and execution within the high tech sector. Within the context of an ever changing world, complex global supply chain ecosystems have become vulnerable to volatility, whereby unpredictable events can cause immediate and massive disruption. A recent report found that 68% of companies surveyed had experienced disruption in their supply chain resulting in over 60 days of delays, with six figure USD losses.

Consequently, supply chain risk is progressively more prevalent amongst the C-suite priorities, becoming an established regular agenda item at the World Economic Forum in Davos. Building supply chain resilience is rapidly becoming a key source of competitive advantage - where Resilience is ‘the ability to recover quickly from change or

misfortune’ and companies need to adopt an approach of ‘Expect the Unexpected!’

SECTOR-SPECIFIC SUPPLY CHAIN STRATEGIES INCLUDE PRODUCT, PACKAGING AND POSTPONEMENT In the high tech sector, supply chain practitioners need to continually consider the balance between seeking the optimum low cost production location whilst having a market presence closer to the rapidly expanding consumer markets.

The rapid development of new features and deployment of the latest technology differentiates their products and shortens the product life cycles, whilst speed-to-market drives competitive advantage.

Effective and efficient supply chain ecosystems are therefore critical for high tech companies to thrive in this massively competitive sector. Flexibility, agility and resilience are critical components of success.

In addition to companies seeking lower cost alternative modes of transportation, changes to the physical configuration of the product and packaging of high tech products are also impacting the air freight sector—by reducing the size, weight and volume of air cargo shipments.

Product-form-factor changes, whereby high tech products become smaller in size and weight even as they become bigger in


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features and functions, will continue to impact supply chains. Reflect on the ongoing changes to the shape, size and weight of your digital handheld devices – hand-phones, digital cameras, storage drives, music players, laptop PC’s and tablets.

Packaging - environmental impact awareness is increasing consciousness and influence of how decisions on packaging shape size and materials can reduce waste and increase recycling opportunities, again shrinking the size and weight of digital products, again impacting the configuration and execution of high tech supply chains.

Postponement – as demand variability exacerbates forecast inaccuracies, and economic volatility increases risk of obsolescence, more high tech companies are adopting postponement strategies.

This typically involves bulk shipment of generic versions of the product to in-region distribution centres, pending final configuration, which can then be done in response to actual end-user demand and destination configuration parameters—think country specific power supplies, instruction manuals, software, labelling and packaging.

Particularly relevant for the high tech sector, such postponement strategies also

enable late-stage customization options – for example loading the products with the latest release of software and/or firmware as the last step before final delivery, thus ensuring the customer is receiving the latest version of the product.These supply chain strategies empower high tech companies to provide rapid response to customer demand, improve inventory utilisation, and lower their risk of obsolescence.

REGIONAL DIVERSITY ACROSS ASIA PROVIDES BOTH CHALLENGES AND OPPORTUNITIESOverlay these high-tech sector-specific complexities with the huge diversity across the Asia region -comprising the full continuum of emerging, developing and developed markets and encompassing widely varying levels of sophistication and maturity in their supply chain and logistics landscapes, infrastructures and capabilities, results in complex and diverse supply chain challenges and opportunities for high tech companies. This regional diversity throughout the Asia region is demonstrated in the Enabling Trade Index compiled by the World Economic Forum (WEF). This report assesses multiple factors that enable trade and measures economies across four broad categories: Market Access, Border Administration, Transport & Communications Infrastructure and

Business Environment, each with various sub-dimensions that impact trade facilitation and therefore enable or inhibit a nation’s ability to benefit from trade.

The resulting Enabling Trade Index ranks 138 economies from around the world. Countries from Asia span the whole range of the index - with Singapore and Hong Kong being ranked globally as number one and number two, but with several Asian economies also being ranked outside and below the top 100.

This wide range of rankings just confirms and reflects the massive diversity across our region, thus reinforcing the supply chain challenges for high tech companies in servicing these diverse and complex markets.

However, the Emerging Markets within Asia will be the fastest growing of all the world’s emerging markets. Asia will become home to 66% of the world’s middle class by 2030 and the region as a whole will account for 50% of global GDP growth through 2050.

CONCLUSIONSo we are firmly in The Asia Era – this is the place to be for growth and prosperity through the foreseeable future.

High tech companies therefore need to embrace the complexity and engage the knowledge and networks needed to overcome the supply chain challenges in order to embrace the smorgasbord of potential new business opportunities.

“If you want your supply chain and logistics department to be a core strength that drives your business, you must become a supply chain and logistics leader worth following – one who

observes, listens, engages and influences as opposed to one who believes that ruling, dominating and conquering are the way to go.”


S U P P L Y C H A I N E - S O L U T I O N S.....................................................................................................................

Walldorf, Baden-Württemberg, Germany-headquartered global enterprise software giant SAP is a name to reckon with and in the frontlines of today’s technology revolution, initiating innovations, solutions and benefits to challenges that confront a wide range of industry verticals including the transportation, supply chain & logistics sectors.

These pioneering solutions are at the core of SAP’s ground-breaking efforts to bring enhanced efficiencies to its continually growing portfolio work and improved productivity for its growing user base. SAP provides solutions and support, making key information and vital data available quickly thereby enabling customers effectively plan and execute logistics and workflow management within the supply chain network.

As a leading player in enterprise application software, SAP helps corporations and businesses of all sizes and from a wide range of industries combat the damaging effects of

complexity, generate new opportunities for innovation and growth and stay ahead of the competition. Currently, SAP applications and services enable more than 282,000 customers (and counting) in over 130 countries to operate profitably, adapt continuously and grow sustainably.

Logistics News Middle East recently met exclusively with Mike Wade, VP, EMEA for the Extended Supply Chain Line of Business, SAP, on a business visit to the UAE, at the company’s offices in Dubai Internet City for an exclusive interview.

Please describe your job portfolio and what is the purpose of your current visit to the UAE?In my current position I am responsible for overseeing the extended ‘Best of Breed’ SAP supply chain sales activities across a vast swathe of territory in the European continent from the Nordic North to the Mediterranean Southern Europe to the Middle East and the

continent of Africa for a potential new client base wanting to make investments in adopting SAP solutions or the existing clientele who currently have a SAP footprint and plan additional portfolio capabilities.

SAP is in the business of providing software & services solutions and in my role I am committed to providing leadership for the Extended Supply Chain & Manufacturing functions across different industrial verticals in the crucial EMEA region. We have qualified, experienced, dedicated teams dealing with our customers across the region. The extent of our solutions portfolio that my team focuses on goes from new product development & ideation, new product designing processes through manufacturing, through Supply Chain planning, Supply Chain execution, Supply Chain compliance and last mile delivery. Visiting, interfacing and bonding with our customers is an essential activity and part of my remit is to stay and work closely with them

SAP CONTINUES TO SHORE UP SUPPLY CHAIN SOLUTIONS

MIGRATING TO & LEVERAGING THE CLOUD WITH THE VANGUARD SAP HANA PLATFORM IS THE NEW SAP BENCHMARK TO ENSURE OPTIMIZATION AND

STREAMLINING OF SUPPLY CHAIN OPERATIONS



Mike Wade

MIKE WADE, VICE PRESIDENT, EX-

TENDED SUPPLY CHAIN LINE OF BUSINESS,

EMEA, SAP

London, United Kingdom-based Mike Wade is Vice

President of the Extended Supply Chain Sales for the

EMEA region at SAP. He has over 20 years experience in Supply Chain & Manufac-turing and is passionate about delivering World

Class software solutions to solve customers’ challenges and help move their busi-ness forward. Mike’s early career included working

within Supply Chain opera-tions but the past 17 years

have seen him working with Supply Chain software solution providers. In that time he has worked with across most Industry sec-tors and has engaged with customers in many regions

of the world.

to ensure they derive the maximum value & return from their investments.

Talk to us about the scope & range of SAP Cloud-based SCM solutions?There is a lot of talk in the industry for the past five years or so now on moving the supply chain to the Cloud but initially there was not much headway in this regard. Progress was sporadic and only components of the supply chain moved into the Cloud. However, more recently, as the industry gets better acquainted with the cloud advantages and possibilities, demand has grown in the industry and the pace of relocating to the cloud is rapidly gaining momentum.

So we have responded to market needs and our customers’ demands. That’s the exciting thing that has happened to SAP in the past 18 months or so. We have developed our Integrated Business Planning (IBP) Solutions Portfolio on our native, proprietary cloud

platform powered by SAP HANA. This is an offering that differs from the traditional systems in as much as it offers a complete suite of supply chain planning and operational solutions—comprising demand, inventory, supply planning & response management in the cloud. This highly developed service is also available to SAP customers for a fee for a specific time frame as pre-agreed.

Please expand on the SAP Hana Platform, what sets it apart in the Supply Chain and why is it the Best of Breed?SAP HANA transforms the way that SAP is able to develop & release new Supply Chain solutions for our customers & the market. SAP HANA enables our real-time IBP Platform offered to our customers through the SAP Cloud. SAP HANA is also delivering additional benefit for our on premise Supply Chain solutions by supporting new & incremental functionality only available as a

result of SAP HANA.Our SAP HANA Enterprise Cloud enables our on premise solutions to be delivered to our customers through the Cloud. We therefore enable our customers to develop hybrid cloud and / or cloud only models.

How significant is the SC&L sector for SAP?The supply chain & logistics sector is very vital for SAP both globally and the wider Middle East. We ae very closely associated with this sector as evidenced by dedicated service teams here in this region that work closely with

SAP HEAD OFFICE IN WALLDORF, GERMANY


customers to deliver optimal and customized solutions.

How important is the Middle East for SAP? The Middle East is very significant for SAP. It is a major growth area for the company and one that holds out a lot of promise and potential.

What are the expansion plans for SAP in the region?Growth is very much on the horizon as far as the Middle East us concerned. We hope to grow substantially in the foreseeable future. Our CEO, Bill McDermott was recently on an

extended GCC tour of the UAE, Saudi Arabia and Qatar and outlined SAP’s growth graph in the region.

His visit and presence is also a testimony to the importance the company attributes to the region. We have grown in the past with new and bigger offices in different countries in the region, boosted staff numbers and will continue to grow both organically and through acquiring new customers.

Saudi Arabia is a huge market for SAP and we fully expect to leverage our strengths and capabilities in the Kingdom. UAE comes in a close second but elsewhere in the region, the

supply chain and logistics processes & practices are gaining traction and taking a life of their own. We have demonstrated growth in the past and are optimistic will continue to do so in the future.

What is your wider vision for SAP for the short & long term futures?My vision for both the short and long terms is simply growth and more growth. SAP is a growth company and the Supply Chain business is no different. We will achieve this through ensuring we listen to our customers, understand their needs and deliver our World Class Supply Chain solutions in a manner that suits them.

We will continue to deliver on our innovation agenda by developing World Class & best-in-class solutions with newer functionalities and capabilities either on premise, in the cloud or hybrid—partly on premise and partly in the cloud, it need not be one or the other.

What are the opportunities and challenges confronting SAP in the MENA region?HANA is transforming the supply chain businesses—it us changing the way customers transact their businesses but it is importantly also changing us in the way we approach business solutions. We announced the S4/HANA our next-generation business suite that promises to help customers run their systems simply and efficiently. We have some big plans and aspirations on this front. This is underpinning growth particularly the cloud component. We are very laser-focused on growth and committed to providing the ‘best of breed’ solutions.

We are not concerned about competition. Challenges abound but we welcome these, it is part of everyday business. In overcoming challenges, we also empower our customers providing them with solutions that they seek.

Hypothetically, if you were addressing a gathering of supply chain professionals in the region today, what would your message be?My message is simple. I would say to them, if you are making an investment in SAP Solutions, you will be making the right decision and not in any way a compromise.

Talk to our Supply Chain Account Executives and you will see that we understand the challenges you are facing. We will bring best practice experiences to bear in a way that no other company can. As a supply chain solutions provider among other functions we are the ‘best-in-class’, uncompromising and uphold high standards. SAP will provide you more—we offer you true ‘value-for-money’ and Total Cost of Ownership benefits. Come to us to solve your supply chain problems!


The supply chain & logistics sector is very vital for SAP both globally and the wider Middle East. We ae very closely

associated with this sector as evidenced by dedicated service teams here in this region that work closely with customers to

deliver optimal and customized solutions

SAP ENTRANCE BUILDING IN ST. LEON-ROT, GERMANY


C A S E S T U D Y

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S W I S S L O G ’ S C A R R Y P I C K S O L U T I O N F O R D B S C H E N K E R

Automation specialists, Swisslog, will deliver its newly developed order fulfilment system for DB Schenker Logistics in Arlandastad, Sweden. The global logistics provider will be the first to implement the pioneering CarryPick solution, part of the Swisslog Click&Pick e-commerce portfolio, for its customer Lekmer.com, Scandinavia’s largest online toy retailer.

“Together with Swisslog, we have developed an inventory management solution that is unique for online businesses in Europe.

This is designed to deliver levels of productivity that exceeds all manual solutions in the industry,” affirmed Anders Holmberg, Business Development Manager of DB Schenker Logistics.

The CarryPick solution will consist of 65 Automated Guided Vehicles (AGVs), 1 500 mobile racking units and seven ergonomic workstations, installed together with Swisslog›s proprietary control systems, WarehouseManager.

The technology behind the fully automated storage and order fulfilment solution has been proven in similar installations across the world. This is the first time, however, that the full scale CarryPick solution will be implemented; designed together with DB Schenker Logistics to provide Lekmer.com with an automated supply chain that guarantees faster order processing and higher quality as well as lower handling costs.

“We are delighted to work together with DB Schenker Logistics in implementing this unique automated solution in their Logistics Center in Arlandastad,” asserted Hans Sparf, Swisslog›s Head of Nordic Sales & Consulting. Swisslog›s Click&Pick e-Commerce portfolio consists of several modules that are combined into customized, scalable solutions, including conveyors, lifting technology, software and other innovative technologies such as AutoStore, SmartCarrier and

CarryPick. Combining storage with replenishment and picking functionality, Swisslog’s Click&Pick solutions ensure accurate distribution whilst providing efficient processes for returns handling.

CarryPick combines transportable racks, robots and Warehouse Management software with mobile multi-functional workstations, providing retailers with a flexible, scalable solution that can adjust quickly to their changing requirements. The automated storage and goods-to-person order fulfilment system is specifically designed for the intralogistics requirements of e-Commerce businesses, where product variability, delivery times and cost efficiency are daily challenges.

SWISSLOG’S PROPRIETARY FULL SCALE CARRYPICK SOLUTION WILL PROVIDE TOY RETAILER WITH AN AUTOMATED SUPPLY CHAIN THAT GUARANTEES FASTER ORDER PROCESSING, THEREBY STREAMLINING OPERATIONS


E V E N T R E V I E W..................................................................................................................................................

S H O W C A S I N G V I S I O N A R Y L E A D E R S H I P & T H E F U T U R E O F C O N V E R G E N C E

The 6th (2015) Edition of Frost & Sullivan’s Growth, Innovation & Leadership GIL 2015: Middle East Executive Congress, recently concluded at Atlantis, The Palm, Dubai. The event showcased visionary leadership and the innovative ideas of the assembled regional executives from across the Middle East.

Setting the stage for this year’s GIL was Frost & Sullivan Global President and Managing Partner, Aroop Zutshi who spoke on this year’s theme of ‘Convergence’ and ‘The Connected World’.

Addressing nearly two hundred CEOs and members of their management teams, Zutshi affirmed that Convergence and Connectivity were two subjects that were creating wide spread disruption across every industry with the potential of not only transforming but also collapsing entire industries. “If responded to appropriately and with the right strategic mix of tools and strategies, businesses can drive opportunities that will rapidly accelerate an organization’s growth,” he explained.

Another session illustrating some game-changing scenarios was the ‘Top 15 of 2015 Global Mega Trends’ presentation and

interactive think tank moderated by Sarwant Singh, Senior Partner and Head of the Frost & Sullivan Visionary Innovation Group. Singh facilitated an interactive think tank where this year’s participants were tasked with creating some innovative and futuristic scenarios of their own that could yield high growth opportunities that they could take back to their organizations and implement.

In attendance this year was HE Abdul Baset Al Janahi, CEO, Dubai SME, for an interactive question and answer session with Aroop Zutshi. He spoke of the need for innovation and the critical part it plays for companies in being able to survive and thrive in an emerging market such as the Middle East.

Additional highlights from GIL 2015: Middle East included an overview of business trends and opportunities for investing in the African marketplace by Mani James, Operations Manager, Africa, Frost & Sullivan.

The evening concluded with recognizing this year’s recipients for their visionary leadership, technological innovations, superior customer service and achievements in strategic product development.

AROOP ZUTSHI EXPLAINED THAT CONVERGENCE WAS PLAYING A PIVOTAL ROLE NOT ONLY IN DEFINING THE FUTURE OF BUSINESS AND THE COMPETITIVE LANDSCAPES TODAY BUT ALSO REDEFINING THE WAY IN WHICH WE MUST DO BUSINESS TOMORROW

Emerging Company of the Year Award for Farm Products: Al Ghalia Farms (Bahrain)

Integrated Healthcare Company of the Year Award: NMC Healthcare (UAE)Emerging Healthcare Provider Company of the Year Award: Burjeel Hospital (UAE)

Market Leadership Award for Domestic Logistics Services – Oman: Al Madina Logistics

Leadership Award for Port Terminal Operations – UAE: DP World, UAE Region

Market Leadership Award for International Logistics Services – Qatar: DHL Global Forwarding

Growth Excellence Leadership Award for Automated Door Systems Market: DORMA Gulf Door Controls

Technology Leadership Award for Pipeline Rehabilitation Technology: OAK Utility Solutions & Development

Product Line Strategy Leadership Award for Heavy Sections & Nuclear Grade Reinforcing Steel: Emirates Steel

Integrated Steel Plant of the Year: Qatar Steel

Customer Value Leadership Award in IT Services: Infosys

New Product Innovation Leadership Award in IT Security: Fortinet

Visionary Innovation Leadership Award for Digital Game Publishing: Game Power 7

Middle East Company of the Year Award for Digital Content Delivery: Intigral

The Visionaries, innoVaTors and Leaders recognized aT giL 2015: MiddLe easT award TiTLe were:


A G E N C Y R E P R E S E N T A T I O N..................................................................................................................................................

G E N AV C O I N T R O D U C E S W E B E R M T T E C H N O L O G YT O U A E

Germany headquartered Weber MT has partnered with GENAVCO by appointing the latter as its exclusive distributor for UAE. Weber MT manufactures state of the art, premium quality Compaction Equipment and their industrial product range includes Walk behind Rollers, Plate Compactors, Vibratory Tampers, Pavement Saws and Concrete Compaction Equipment.

UAE, as one of the fastest developing

economies in the world, has witnessed a revival of construction boom in the run up to World EXPO 2020 and Vision 2030 of the Government, Consequently, massive infrastructure projects are being planned and executed and more are being lined up.

The Government is investing heavily in developing and expanding the road network in the country. GENAVCO, the leading Road Construction Equipment

Supplier in the UAE, has teamed up with Weber MT to complement its product range particularly in the area of light compaction equipment. “We put quality, service and the satisfaction of our customers on the top priority.

Our partnership with Weber MT puts us in a position where we can offer to our customers reliable products packed with innovation that will allow them increased productivity,”

averred Isam Abu Nabah, President of GENAVCO.

A good example of Weber MT›s innovations is COMPATROL, the first compaction control system for reversible soil compactors.

The system developed by Weber MT provides uniform compaction of the soil and cuts the number of unnecessary, redundant compacting cases by up to 25 percent. «This boost in efficiency helps construction companies to save time and money,» explained Asif Sayeed Khan, General Manager, GENAVCO›s Equipment Business Unit.

Weber MT provides a two-year warranty on COMPATROL and on all other products in their range. «The UAE market size for light compaction equipment is significant.

With our loyal customer base in the road construction industry and general construction industry in general, we are confident we will secure a decent market share with the top quality Weber MT products,» Khan continued.

GENAVCO, founded in 1967 and part of the Juma Al Majid Group, is one of the largest and prominent suppliers of industrial equipment to construction, mining and materials handling equipment industries.

THE COMPATROL SYSTEM DEVELOPED BY WEBER MT PROVIDES UNIFORM COMPACTION OF THE SOIL AND CUTS THE NUMBER OF UNNECESSARY, REDUNDANT COMPACTING CASES BYUP TO 25 PER CENT

FROM LEFT ASIF SAYEED KHAN, GENAVCO; KATHARINA WEBER, WEBER MT;

ISAM ABU NABAH, PRESIDENT, GENAVCO & MATTHIAS KRATZEL, WEBER MT

THE WEBER MT COMPATROL CR 7 IN ACTION


L O G I S T I C S P A R T N E R S H I P..................................................................................................................................................

At a recent ceremony, GEFCO Middle East, one of the leaders in the automotive logistics sector and one of the top ten European logistics groups, signed a landmark, long-term logistics service agreement with Dubai World Central-based based 3PL Services provider RSA Logistics, to support the storage services for finished vehicles. The objective of the agreement is to cater to the growing demand for FVL (Finished Vehicles Logistics) in the region. RSA will be providing just over 100,000 sq. m. of logistics space along with IT support, security and resources to assist in the operation.

“We listened to our customer, understood their needs and are now implementing it to make it a reality,” commented Abhishek Ajay Shah, Managing Director, RSA Logistics, on the occasion.

“At GEFCO we believe in integrated logistics solutions to improve the supply chain mechanism of our customers. The agreement with RSA will support the growth of the FVL activity in the region,” observed Stefano Pollotti, Managing Director, GEFCO, Dubai, observed.

Established in 2007, RSA logistics has developed a major presence in the UAE as a

logistics provider, offering contract logistics, freight forwarding, distribution, and supply chain management services. The company’s rapid growth and expansion plans have seen the establishment of a joint venture which will specifically serve the chemical and petrochemical industries, and cater to the storage of hazardous and non-hazardous material. In conjunction with German Logistics giant Alfred Talke Logistic Services, RSA operates a state-of-the-art chemicals storage facility in DWC.

The company currently owns and ISO-certified 170,000 square meters of logistics space, state-of-the-art multi-temperature warehousing facility in DWC. In addition the company has commissioned a 17,000 square meters facility that house modern integrated warehousing units dedicated to the hi-tech and automotive industry with temperature controlled chambers that enable world-class solutions to customers. RSA also unveiled a 75,000 sq. m. open yard facility for out-of-gauge cargo and project logistics.

GEFCO first opened its Dubai offices in late 2012 and has been fully operational since

February 2013. Renowned for its logistics operations in the automotive industry, the opening of the new offices is in line with the company›s strategy of utilizing the Emirate as a hub to complement and expand existing operations. It also consolidates GEFCO’s existing presence in the region, which includes representation offices in Iraq and Turkey to support trade primarily with China and Eastern Europe.

The rapid growth in activity has allowed for the creation of a dedicated subsidiary to effectively manage and further develop business. GEFCO’s Middle East operations and presence is perfectly positioned to bring the group›s recognised expertise in end-to-end import and export multimodal and automotive solutions to the region--thereby ensuring an optimized supply chain for customers.

RSA Logistics was established in 2007 and now has a major presence in the UAE and Kenya. The company offers services in contract logistics, freight forwarding, distribution, and supply chain management. Headquartered in Dubai, RSA supports many of the world›s top brands from a wide spectrum of industries.

THE RSA LOGISTICS-GEFCO PARTNERSHIP WILL SUPPORT AND LAY THE FRAMEWORK FOR INCREASED FINISHED VEHICLES LOGISTICS (FVL) ACTIVITY IN THE REGION

RSA LOGISTICS GEFCO IN

LONG-TERM LOGISTICS

SERVICE AGREEMENT

ABHISHEK AJAY SHAH (L) AND STEFANO POLLOTTI AT

THE SIGNING CEREMONY

02 - 04 March 2015


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