logistics middle east - feb 2010

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NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS FEBRUARY 2010 ISSUE 65 CHEP MIDDLE EAST І FAMCO І LOGSQUARE І ACME GROUP І GODREJ & BOYCE An ITP Business Publication Licensed by Dubai Media City MATERIAL WORLD Walid Daniel discloses the secrets behind the SPAN Group’s continual success VERTICAL REALITIES How a niche focus can benefit logistics service providers in the region WHAT DOES THE FUTURE HOLD FOR THE MIDDLE EAST MARKET? HANDLING MATERIAL

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Page 1: Logistics Middle East - Feb 2010

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSFEBRUARY 2010 ISSUE 65

CHEP MIDDLE EAST І FAMCO І LOGSQUARE І ACME GROUP І GODREJ & BOYCE

An ITP Business PublicationLicensed by Dubai Media City

MATERIAL WORLDWalid Daniel discloses the secrets behind the SPANGroup’s continual success

VERTICAL REALITIES How a niche focus can benefi t logistics service providers in the region

WHAT DOES THE FUTURE HOLD FOR THE MIDDLE EAST MARKET?

HANDLINGMATERIAL

Page 2: Logistics Middle East - Feb 2010

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In-house Land Transportation Services

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E-mail: [email protected]

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Page 3: Logistics Middle East - Feb 2010

1www.arabiansupplychain.com | FEBRUARY 2010

CONTENTS

CONTENTS

02 Editor’s LetterCan the material handling sector expect a much-awaited rebound in the Middle East?

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

07 News Update• Logistics industry ready to celebrate with

the Supply Chain and Transport Awards• Aramex fi nalises joint venture in Oman• First Bahrain starts Majaal operations• Abu Dhabi set for global logistics forum• Kuehne + Nagel increases UAE workforce• ACME opens Dubai pallet mole warehouse• Godrej reports 70% growth in Middle East• Dubai Trade honours e-service excellence• TNT introduces 30 trailers to local fl eet

Issue 65 February 2010

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

16 Material Handling ReportA comprehensive report on the material handling sector in the Middle East, with a general overview from Loc8’s managing director Stewart Arbuckle, together with results from Logistics Middle East’s 2010 market survey, and interviews with ten of the region’s most prominent players.

22 Interview: SPAN GroupAs one of the fi rst companies to enter the Middle East material handling sector back in the late 1980s, Walid Daniel explains how SPAN Group has maintained its leadership position for over two decades in the industry.

33 Ask The ExpertUlrich Koegler, partner at Booz and Company, highlights the benefi ts of specialising in niche markets for Middle East logistics companies.

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

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

40 Face To Face InterviewTh e opening of its large-scale warehouse facility in Jebel Ali Free Zone South has marked the latest chapter in the success story of JBC Express Freight, explains managing director P.K. Ayyappan.

07

16

40

For the latest news and stories go to

22

Page 4: Logistics Middle East - Feb 2010

2 FEBRUARY 2010 | www.arabiansupplychain.com

EDITOR’S LETTER

2

To subscribe please visit www.itp.com/subscriptions

Searching for leaders of the material world

Registered at Dubai Media CityPO Box 500024, Dubai, UAETel: 00 971 4 210 8000, Fax: 00 971 4 210 8080Web: www.itp.comOffices in Dubai & London

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The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances.

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Published by and © 2010 ITP Business Publishing, a division of the ITP Publishing Group Ltd. Registered in the B.V.I. under Company Number 1402846.

ollowing the overwhelming response to our power list in the previous issue of Logistics Middle East, it’s now time to shift our attention to the

local material handling sector. Despite a certain degree of turbulence in the last year, the market has started to experience its fi rst green shoots of recovery around the world and that certainly holds true in this region. Our exclusive interview with Walid Daniel, managing director of SPAN Group, provides a fascinating insight into one of the fi rst companies to operate in the sector – and one of the most successful too. We also catch-up with executives from ten other leaders from the Middle East, including FAMCO, Logsquare, ACME Group, CHEP Middle East, BITO and Godrej & Boyce, with each interview looking at the common themes of growth, survival and innovation.

Although these profi les will provide an interesting backdrop to the supply side of business, our market report would not be complete without touching on demand. For the fi rst time in the magazine’s history,

Fwe have conducted a readership survey, with approximately 250 material handling purchasers from across the Middle East taking part. Your opinions on the region’s market could be changed by looking at the results of this questionnaire, which are published on pages 18-20 (sponsored by the SPAN Group).

Finally, what the material handling sector has traditionally lacked in this part of the world is manufacturing activities. However, this could be set to change, with news that Gulf Automobile Industry Corporation (GAIC), the Middle East’s fi rst manufacturer of a forklift truck, has experienced such a positive response to its ‘Camel’ brand that it plans to move from a 14,000 square metre factory in Abu Dhabi to a 3 million square metre facility in Saudi Arabia. Its great news to start the year and we’re looking forward to other positive signs in the coming months.

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

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

Page 5: Logistics Middle East - Feb 2010
Page 6: Logistics Middle East - Feb 2010

4 FEBRUARY 2010 | www.arabianbusiness.com/transportation

READERS LETTERS

4

Future considerations for power listDear Editor,

Further to the publication of your Logistics Middle East Power List 2010, I would

like to congratulate each of these exceptional leaders, who comprise the ‘who’s who’ of the industry. It was quite a comprehensive list, although Saudi Arabia seems under-represented, with the exception of Syed Mustafa from Al Majdouie and

Brian McHale from Wared Logistics. Hopefully in the future, as more and

more industry experts avail of the immense opportunities in the Kingdom,

we will begin to see more representation in the power list. If I were allowed to nominate one CEO for next year, my pick would be Aamer Alireza, the man behind the fi rst private container terminal in KSA, Th e Red Sea Gateway Terminal, and CEO of the Saudi Trade & Export Development Company (Tusdeer).Nadeem Qureshi

Pride of Saudi Arabian logisticsDear Editor,Th e power list published in the last issue of Logistics Middle East was very informative. On behalf of the Project Professionals Group (PPG), I would like to take this opportunity to congratulate everyone on the list, with a specifi c mention to Syed Mustafa for being the highest ranked person from Saudi Arabia.Kevin Stephens, general manager, PPG

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Fadi Ghandour was the right choiceDear Editor,An interesting list and I’ll have to agree with Fadi Ghandour being selected for the top position. I think he’s been an inspiration for others and proved what heights can be scaled with effi cient leadership. It’s also nice that so much ‘local talent’ has made it onto the list, alongside their global counterparts.Ashok Mehta

Characteristics of a leaderDear Editor,Success is that old adage of ABC – ability, breaks and courage. Th at’s what Elias Monem from Agility is all about, so I’m particularly thrilled to read about his inclusion in your Logistics Middle East Power List. He has the courage and the daring nature to truly make a diff erence and that’s resulted in him taking Agility Logistics an extra mile every day.Asif Abdul Rauf

Personal opinion on rankingsDear Editor,Th is is the fi rst time I have seen such a list for the Middle East logistics industry, so congratulations. Th e rankings are good, although personally I would have placed Hamdi Osman from FedEx in either third or fourth position. Also, I’m assuming that Issa Baluch is not included because he’s sold Swift Freight to Barloworld. Shame really, I felt his presence was missing on the list.Iftikhar Chaudhry

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

Iftikhar Chaudhry

tics Middle East, PO Box 500024, Dubai, UAE or email: robeel.haq@i@ittp c.comomq p

Positive feedback from SNS conferenceDear Editor,I would like to congratulate Mario Ghosn from Supply Network Solutions (SNS) and his entire team for hosting such a top conference in Lebanon. It was great to look at the photos from this event in the last issue of Logistics Middle East magazine. I was actually present and found the conference very worthwhile. Th e speakers were relevant and the information was up-to-date. In particular, Walid Daniel from SPAN Group provided a great presentation. I am very positive that this conference will open further opportunities for SNS in the future and CILT looks forward to being part of the follow-up event in 2010.Alex Borg, regional director, CILT

Page 7: Logistics Middle East - Feb 2010

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Page 8: Logistics Middle East - Feb 2010

March 14-15, 2010

Under the Patronage of

His Highness Sheikh Hamdan Bin Zayed Al NahyanThe Rulers Representative in the Western Region

Under the Patronage of

His Highness Sheikh Hamdan Bin Zayed Al NahyanThe Rulers Representative in the Western Region

Page 9: Logistics Middle East - Feb 2010

7www.arabiansupplychain.com | FEBRUARY 2010

NEWS UPDATE

Logistics awards to celebrate Middle East achievements

eading players from the Middle East logistics industry will compete for trade honours at the fourth annual Supply Chain and Transport Awards (SCATA).

Th e prestigious ceremony, which is organised by ITP Business Publishing, will be hosted at one of Dubai’s

glamorous fi ve-star hotels in June 2010.“Supported by continued investment in the Middle East’s

transportation infrastructure, the region is producing some of the most impressive warehousing and transportation companies in the world,” commented Walid Akawi, chief executive offi cer of ITP Business Publishing.

“Against this exciting backdrop, the Supply Chain and Transport Awards make a welcome return in 2010 to recognise the individuals and companies that stand out from this exalted crowd. Th e nominees will once again include a combination of regional and international players that have gone above and beyond in terms of their industry contribution,” he added.

L

Which companies have been awarded the most trophies since the SCATAs were started in 2007?

Gulf Agency Company (fi ve awards)DP World (four awards)Jebel Ali Free Zone (three awards)Dubai Cargo Village (three awards)Aramex (two awards)DHL Express (two awards)Emirates SkyCargo (two awards)Maersk Line (two awards)

LEADERBOARD: SUPPLY CHAIN AND TRANSPORT AWARDS

Supply Chain and Transport Awards (SCATA) will return to Dubai for a fourth consecutive year in 2010

NEWS UPDATE

SCATA 2010 will include 16 categories in total, covering the logistics, sea freight and air cargo sectors in the Middle East. Th ese include the Express Logistics Provider of the Year and 3PL Service Provider of the Year awards, which honour companies that have consistently delivered world-class services and facilities across the region over the past year. In addition, the FMCG Logistics Manager of the Year category will be awarded to the senior executive that has made a signifi cant diff erence in managing their company’s in-house supply chain operations.

“Since its inception in 2007, the Supply Chain and Transport Awards have emerged as a leading event for the Middle East logistics industry. Given the market challenges that our industry is facing on a global level at the moment, this is a perfect opportunity to remember those companies and individuals that continue to achieve excellence on a daily basis,” commented Issa Baluch, founder of Swift Global Logistics, who returns to the judging panel for the fourth consecutive year.

Also coming back to the Supply Chain and Transport Awards in 2010 are Captain Mansoor Ghafoor (CEO of STALCO Group and president of National Association of Freight and Logistics), Ali Al Jallaf (vice president of Dubai Airports cargo unit), Salma Hareb (CEO of Economic Zones World), Dr Kanak Madrecha (senior manager of Dubai World and founding member of the Supply Chain and Logistics Group), Cedwyn Fernandes (MBA programme coordinator at Middlesex University Dubai) and Sebastian Th omas (head of supply chain at ZAFCO). Th e panel also welcomes the addition of Alex Borg, regional director of the Chartered Institute of Logistics and Transport (CILT).

“Th e judging panel has never been stronger and we’re looking forward to receiving this year’s nominations,” added Baluch. “Award ceremonies in general are important in defi ning the benchmark for excellence and separating the outstanding achiever from the rest of the group. Th ey also provide recognition to the best performers in the fi eld, while inspiring others to emulate their success. Th is is exactly what we’re hoping to achieve with the SCATAs.”

To receive further information, submit your nomination or book your tickets, please visit www.arabiansupplychain.com/scata

Page 10: Logistics Middle East - Feb 2010

8 FEBRUARY 2010 | www.arabiansupplychain.com

NEWS UPDATE

construction represents a major and tangible accomplishment by the team and puts us in a good position to execute on projects in the year ahead.”

Approximately 130,000 square feet of storage space has been

Danzas has expanded its CSR (corporate social responsibility) programme with a recent pledge to support the production of donation envelopes for the Emirates Airline Foundation. The logistics company, which has worked with Emirates Airline for over a decade, will assist with the charitable project for the next 12 months. “As part of DHL, we have a responsibility to support local communities and use our core expertise to benefi t society,” stated Enver Moretti, CEO of DHL Global Forwarding in the EMA region.

AW Rostamani Logistics will host an opening ceremony for its latest warehouse in Jebel Ali Free Zone next month. The event, which takes place on 18th February 2010, is being hosted by Abdul Wahid Al Rostamani, chairman of AW Rostamani Group, together with Japanese partners Mitsui & Co and Mitsui-Soko Company. “This new facility has marked the next chapter in our growth and we look forward to welcoming partners and Jafza offi cials to this ceremony,” said Hajime Ogawa, managing director, AW Rostamani Logistics.

Kuehne + Nagel has increased its management team in the United Arab Emirates, with the appointment of Dirkjan Mechielsen as national seafreight manager and Mark Bondonno as national airfreight manager. Mechielsen has joined the Dubai offi ce from Kuehne + Nagel’s Istanbul branch, while Bondonno previously worked at DHL Danzas. “These appointments, along with our recent move into a purpose-built facility, have proved the company’s commitment to the Middle East,” said Christopher Smith, national manager of Kuehne + Nagel in the UAE.

Aramex has formed a joint venture with the Oman-based business

conglomerate Z-Corp (Zubair Corporation) to provide clients in the Sultanate with logistics services such as storage and distribution, freight forwarding and customs brokerage.

The new company will cater to a wide range of industries, including telecommunications, fast moving consumer goods (FMCG), military, retail and information technology.

First Bahrain hosted an opening ceremony last month for its

‘Majaal’ logistics development in Bahrain Investment Wharf.

The project, which has been valued at US$45 million, is now being marketed to potential tenants from the Middle East’s small to medium enterprise (SME) market.

“The achievement of this milestone comes at a signifi cant time for the Kingdom, with His Majesty the King celebrating the fi rst 10 years of his rule and the recent inauguration of both Khalifa Bin Salman Port and Salman Industrial City,” said Amin Al Arrayed, general manager of First Bahrain and board member of Majaal.

“For our company, the on-time and on-budget completion of

Aramex fi nalises Oman joint venture

First Bahrain commences Majaal operations

3PL

“This agreement marks an important step towards expanding the depth and range of our services in Oman, while expanding our supply chain solutions network across the Middle East and North Africa (MENA) region,” said Fadi Ghandour, founder and chief executive offi cer of Aramex.

As part of the agreement, Aramex and Z-Corp plan to build a state-of-the-art logistics centre in Oman, with the fi rst phase scheduled for completion

in early 2011. The new facility, which has been designed to comply with global guidelines, will be situated in the Nasseem Gardens area of Barka on a plot of land that measures nearly 160,000 square metres.

“We are both determined that our logistics facility in Oman will be environmentally sustainable, in line with the commitments that both parties have made to our communities, in addition to the environment,” added Ghandour.

3PL

NEWS IN BRIEF

delivered with phase one of the project, which is being offered to customers in units ranging from 250m2 to 1000m2 in size, each with the provision of 24-hour security service and information technology.

Aramex founder and chief executive offi cer Fadi Ghandour has partnered with Z-Corp for the company’s latest expansion in Oman

Amin Al Arrayed (centre) cuts the ribbon for Majaal’s fi rst phase of development

Page 11: Logistics Middle East - Feb 2010

9www.arabiansupplychain.com | FEBRUARY 2010

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

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

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

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

INTERNATIONAL CERTIFICATE IN LOGISTICS AND TRANSPORT

INTERNATIONAL CERTIFICATE INLOGISTICS AND TRANSPORT

INTERNATIONAL PROFESSIONAL QUALIFICATIONS IN LOGISTICS AND TRANSPORT

INTERNATIONAL DIPLOMA INLOGISTICS AND TRANSPORT

INTERNATIONAL ADVANCED DIPLOMA INLOGISTICS AND TRANSPORT

Abu Dhabi set for global trade forumAbu Dhabi will host the ‘Global Logistics Forum’ next month

in support of the emirate’s Economic Vision 2030.

The conference, which takes place on 14th and 15th March 2010, has been organised by Abu Dhabi University as part of a

EVENTS

long-term partnership with the Berlin Institute of Technology (TU-Berlin) Chair of Logistics, an internationally renowned university in Germany.

“Despite the downturn, this region is still experiencing a strong demand for logistics services, which has outpaced

the global market. The ongoing infrastructure projects in the United Arab Emirates requires an understanding of the various strengths, weaknesses, risks andopportunities from a local and global point of view,” explained His Excellency Ali Saeed Bin Harmal Al Dhaheri, chairman of Abu Dhabi University.

“The Global Logistics Forum will also address subjects related to Abu Dhabi’s Master Plan and Economic Vision 2030. We will bring global supply chain leaders and heads of various international logistics organisations to tackle the needs of the local supply chain and logistics industry in the global economic crisis,” he added.

The event is supported by the Chartered Institute of Logistics and Transport (CILT), with Logistics Middle East magazine as media partner.

TNT Express has expanded its delivery fl eet in the Middle East to increase the availability of its express delivery solutions. The company, which secured a string of regional contracts from clients such as Volvo, Dubal and Hewlett-Packard in the past year, recently introduced 30 new trailers onto its Middle Eastern Road Network. “Given the economic situation, many of our customers are opting for road networks as opposed to air freight, which means the introduction of added capacity is fundamental,” commented Mark Woodcock, sales and commercial director of TNT Express UAE.

NEWS IN BRIEF

NEWS UDPATE

Abu Dhabi University offi cials sign an agreement with Berlin Institute of Technology

Page 12: Logistics Middle East - Feb 2010

8 FEBRUARY 2010 | www.arabiansupplychain.com

NEWS UPDATE

construction represents a major and tangible accomplishment by the team and puts us in a good position to execute on projects in the year ahead.”

Approximately 130,000 square feet of storage space has been

Danzas has expanded its CSR (corporate social responsibility) programme with a recent pledge to support the production of donation envelopes for the Emirates Airline Foundation. The logistics company, which has worked with Emirates Airline for over a decade, will assist with the charitable project for the next 12 months. “As part of DHL, we have a responsibility to support local communities and use our core expertise to benefi t society,” stated Enver Moretti, CEO of DHL Global Forwarding in the EMA region.

AW Rostamani Logistics will host an opening ceremony for its latest warehouse in Jebel Ali Free Zone next month. The event, which takes place on 18th February 2010, is being hosted by Abdul Wahid Al Rostamani, chairman of AW Rostamani Group, together with Japanese partners Mitsui & Co and Mitsui-Soko Company. “This new facility has marked the next chapter in our growth and we look forward to welcoming partners and Jafza offi cials to this ceremony,” said Hajime Ogawa, managing director, AW Rostamani Logistics.

Kuehne + Nagel has increased its management team in the United Arab Emirates, with the appointment of Dirkjan Mechielsen as national seafreight manager and Mark Bondonno as national airfreight manager. Mechielsen has joined the Dubai offi ce from Kuehne + Nagel’s Istanbul branch, while Bondonno previously worked at DHL Danzas. “These appointments, along with our recent move into a purpose-built facility, have proved the company’s commitment to the Middle East,” said Christopher Smith, national manager of Kuehne + Nagel in the UAE.

Aramex has formed a joint venture with the Oman-based business

conglomerate Z-Corp (Zubair Corporation) to provide clients in the Sultanate with logistics services such as storage and distribution, freight forwarding and customs brokerage.

The new company will cater to a wide range of industries, including telecommunications, fast moving consumer goods (FMCG), military, retail and information technology.

First Bahrain hosted an opening ceremony last month for its

‘Majaal’ logistics development in Bahrain Investment Wharf.

The project, which has been valued at US$45 million, is now being marketed to potential tenants from the Middle East’s small to medium enterprise (SME) market.

“The achievement of this milestone comes at a signifi cant time for the Kingdom, with His Majesty the King celebrating the fi rst 10 years of his rule and the recent inauguration of both Khalifa Bin Salman Port and Salman Industrial City,” said Amin Al Arrayed, general manager of First Bahrain and board member of Majaal.

“For our company, the on-time and on-budget completion of

Aramex fi nalises Oman joint venture

First Bahrain commences Majaal operations

3PL

“This agreement marks an important step towards expanding the depth and range of our services in Oman, while expanding our supply chain solutions network across the Middle East and North Africa (MENA) region,” said Fadi Ghandour, founder and chief executive offi cer of Aramex.

As part of the agreement, Aramex and Z-Corp plan to build a state-of-the-art logistics centre in Oman, with the fi rst phase scheduled for completion

in early 2011. The new facility, which has been designed to comply with global guidelines, will be situated in the Nasseem Gardens area of Barka on a plot of land that measures nearly 160,000 square metres.

“We are both determined that our logistics facility in Oman will be environmentally sustainable, in line with the commitments that both parties have made to our communities, in addition to the environment,” added Ghandour.

3PL

NEWS IN BRIEF

delivered with phase one of the project, which is being offered to customers in units ranging from 250m2 to 1000m2 in size, each with the provision of 24-hour security service and information technology.

Aramex founder and chief executive offi cer Fadi Ghandour has partnered with Z-Corp for the company’s latest expansion in Oman

Amin Al Arrayed (centre) cuts the ribbon for Majaal’s fi rst phase of development

Page 13: Logistics Middle East - Feb 2010

9www.arabiansupplychain.com | FEBRUARY 2010

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

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

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

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

INTERNATIONAL CERTIFICATE IN LOGISTICS AND TRANSPORT

INTERNATIONAL CERTIFICATE INLOGISTICS AND TRANSPORT

INTERNATIONAL PROFESSIONAL QUALIFICATIONS IN LOGISTICS AND TRANSPORT

INTERNATIONAL DIPLOMA INLOGISTICS AND TRANSPORT

INTERNATIONAL ADVANCED DIPLOMA INLOGISTICS AND TRANSPORT

Abu Dhabi set for global trade forumAbu Dhabi will host the ‘Global Logistics Forum’ next month

in support of the emirate’s Economic Vision 2030.

The conference, which takes place on 14th and 15th March 2010, has been organised by Abu Dhabi University as part of a

EVENTS

long-term partnership with the Berlin Institute of Technology (TU-Berlin) Chair of Logistics, an internationally renowned university in Germany.

“Despite the downturn, this region is still experiencing a strong demand for logistics services, which has outpaced

the global market. The ongoing infrastructure projects in the United Arab Emirates requires an understanding of the various strengths, weaknesses, risks andopportunities from a local and global point of view,” explained His Excellency Ali Saeed Bin Harmal Al Dhaheri, chairman of Abu Dhabi University.

“The Global Logistics Forum will also address subjects related to Abu Dhabi’s Master Plan and Economic Vision 2030. We will bring global supply chain leaders and heads of various international logistics organisations to tackle the needs of the local supply chain and logistics industry in the global economic crisis,” he added.

The event is supported by the Chartered Institute of Logistics and Transport (CILT), with Logistics Middle East magazine as media partner.

TNT Express has expanded its delivery fl eet in the Middle East to increase the availability of its express delivery solutions. The company, which secured a string of regional contracts from clients such as Volvo, Dubal and Hewlett-Packard in the past year, recently introduced 30 new trailers onto its Middle Eastern Road Network. “Given the economic situation, many of our customers are opting for road networks as opposed to air freight, which means the introduction of added capacity is fundamental,” commented Mark Woodcock, sales and commercial director of TNT Express UAE.

NEWS IN BRIEF

NEWS UDPATE

Abu Dhabi University offi cials sign an agreement with Berlin Institute of Technology

Page 14: Logistics Middle East - Feb 2010

10 FEBRUARY 2010 | www.arabiansupplychain.com

NEWS UPDATE

year, compared to the same period in 2008.

The Indian company, which has a regional offi ce in Sharjah Airport International Free Zone, benefi ted from a number

Hundreds of people were treated to live demonstrations of FAMCO’s complete product range during the company’s latest roadshow in Dubai last month, which followed the success of previous events in Abu Dhabi and Ras Al Khaimah. “We decided to hold this event at the Al-Futtaim Logistics warehouse in Jebel Ali Free Zone and received a very favourable response,” said David Dronfi eld, divisional manager of FAMCO’s storage and handling solutions division. “We had displays for brands such as Linde, Dexion, Volvo, Ingersoll Rand, Yanmar, Hart, Nassau, Stertil and Bott.”

GAIC (Gulf Automobile Industry Corporation), the Middle East’s fi rst manufacturer of a forklift truck, has announced a major expansion to meet growing market demand. The company, which produces the Camel forklift, is moving from its 14,000m2 factory in Abu Dhabi to a three million square metre facility in Saudi Arabia. “With a US$13.5 million sales forecast for 2010, the move to a larger manufacturing plant was necessary,” commented Dr Nasser Hamad Al Hajeri, GAIC chairman, who plans to hire 800 additional staff for the factory.

Jordan’s Naouri Group has formed a partnership with the UK-based freight specialist Braid Logistics.Representatives from both parties recently signed an agreement for the Naouri Group to promote and distribute Braid Logistics’ FlexiTank product - a polyethylene container for fl uids, non-hazardous chemicals and oils. “The FlexiTank can help to reduce the cost, volume and weight occupied by traditional containers and vessels by 50%,” commented Ibrahim Naouri, chairman of the Naouri Group of Companies.

Jaleel Traders, one of the largest food product distributors

in the UAE, has commissioned the country’s fi rst Pallet Mole high-density storage system at its new cold store at Aweer Fruit and Vegetable Market.

The Pallet Mole system has been designed and installed by the ACME Group to raise Middle East standards in fl oor space utilisation and operator productivity, allowing Jaleel Traders to pick and load a 40’ container within 30 minutes.

The system combines the density of drive-in racking with the benefi ts of fl ow racking and automation, according to Navin Narayan, director of Dubai-based ACME Group.

“The Pallet Mole system was developed by our South African partners Storage Management Systems and provides a cost effective solution for customers that operate high density multi-

Godrej & Boyce has reported that Middle East sales for its

storage solutions increased by more than 70% across the region over the fi rst nine months of last

‘Pallet mole’ centre opened in the UAE

Godrej reports 70% growth in the Middle East

MATERIALHANDLING

MATERIALHANDLING

NEWS IN BRIEF

of product launches in 2009, including a 1.5 tonne counter-balance stacker with AC driver and a digital picking solution for warehouses and shopfl oors.

“During the global recession, we consolidated our position in the Middle East with various product launches, which helped to exponentially increase the company’s client base,” stated Krishna Raj, regional manager of Godrej & Boyce in the Middle East, North Africa and CIS.

“Moving forward, we plan to expand on both a regional and international basis and will remain contemporary and relevant with the launch of new products and businesses. The entire Godrej & Boyce team in the Middle East is optimistic about the future and confi dent about achieving sustainable and long-term growth in the region,” he added.

SKU logistics facilities, such as cold stores and food distribution hubs,” he commented.

“Unlike other storage system layouts, which require multiple access aisles, the Pallet Mole

system only requires aisles for pallet entry and retrieval, making them space effi cient. The layout can be designed to go up to 60 pallets deep,” he added.

ACME Group installed the pallet mole system at Jaleel Traders’ warehouse in Dubai

Krishna Raj from Godrej & Boyce is backing a regional expansion for the company

Page 15: Logistics Middle East - Feb 2010

ADVERTORIAL

Producing commercial vehicles to power the transportation industry is a successful business for HINO Motors Ltd. With a history that spans fi ve

decades, the development and manufacture of heavy, medium and light diesel trucks and buses is still going strong and on the rise.

HINO is a brand with an impressive global history and it was towards the end of the 1960s and start of the 1970s that HINO’s heavy duty trucks were introduced to the UAE, Saudi Arabia, Kuwait and Oman markets. The end of the 1970s saw the launch of a specifi c model for the Middle East market - the HINO ZY. Demonstrating outstanding reliability and durability, the ZY became the best selling HINO truck in the Middle East.

But this is not the end of the company’s success story, which has continued throughout the fi rst decade of the 21st century. In 2003 HINO introduced the new medium duty truck HINO 500 series, closely followed a year later with

the introduction of the new heavy duty truck HINO 700 series, featuring the technologically advanced complete electronic control engine. The popularity of HINO led to dramatic growth during the three year period, 2005 to 2008, during which time HINO launched the light duty truck HINO 300 series to delighted customers.

With 2,245 units sold in the Middle East in 2005, more than doubling in 2008, the launch of the fi rst regional HINO technical training centre at Sharjah Airport International Free Zone was fuelled, off ering a tremendous support network to facilitate further growth. Customers are now able to rest assured that the quality of HINO products is coupled with a heavy commitment towards after sales service. The technical training facility is run by Japanese instructors and employs the latest technology, following the policy of ‘customer fi rst’ which underpins HINO’s highly successful global operations.

The technical training centre will play a key role, not only in top-class training but in propelling sales.

Within the UAE, HINO is solely distributed by Al-Futtaim Motors’ newly formed commercial division. Recently awarded ‘2008 HINO Vehicle Sales Achievement Award’, recording an 80 per cent increase in sales, Al-Futtaim Motors was recognised as a top achiever in sales growth and the ongoing successful progress of HINO in the Middle East. The HINO Dubai service facility is situated in Ramoul next to the HINO Parts division. The facility has 10 service bays capable of accommodating big buses and heavy duty vehicles. The service facility is open six days a week and afterhours support for customers is done via three mobile vehicles 24/7 across the United Arab Emirates.

HINO Service off ers Service Agreement packages ranging from the basic 40,000km servicing package to plans covering the lifespan of the vehicle. The company guarantee all workmanship and genuine parts purchased for a period of six months from date of sale.

Confi dence reigns for HINO in the region, further cementing the brand’s presence, and its future is on sturdy optimistic ground. Plans are afoot to open two new HINO facilities; a service and parts facility in Sharjah serving the Northern Emirates and a sales, service and parts facility in Mussafah, in line with the growth being experienced in these areas.

HINO will be participating in the Commercial Vehicles Middle East Exhibition from 9 -11 March 2010 at Dubai World Trade Centre in Sheikh Zayed Hall, stand 3.

“TO IMPROVE VEHICLE UPTIME, ALFUTTAIM

MOTORS’ HINO SERVICE DIVISION CARRIES OUT ONSITE SERVICING

FOR ALL HINO TRUCKS AND BUSES, ULTIMATELY SAVING TIME AND MONEY,”

PAUL HENNING, GENERAL MANAGER HINO,

ALFUTTAIM MOTORS

SALES MANAGER: Javed Khan 04 2066199, SERVICE MANAGER: John Els: 04 704 3412, Joachim Braganza: 04 704 3393 (050 896 4707), Rufi no Dilanco: 04 704 3395 (050 295 8125

HINO EXPERIENCES TREMENDOUS GROWTH IN THE UAENEW TECHNICAL TRAINING CENTRE PROMISES CUSTOMERS THE BEST QUALITY PRODUCTS COUPLED WITH THE ULTIMATE IN AFTERSALES SERVICE

Page 16: Logistics Middle East - Feb 2010

12 FEBRUARY 2010 | www.arabiansupplychain.com

anzas, Globelink West Star Shipping and Unique Sea Cargo were amongst the winners of the second annual E-Service Excellence Awards (ESEA), which were hosted at the Raffl es Hotel in Dubai last month.

Th e prestigious ceremony was organised by Dubai Trade, the online services provider of Dubai World, to honour the performance of companies that have implemented the ROSOOM integrated e-payment platform.

“With more than 150 people in attendance, Dubai Trade is encouraged by the response to this year’s E-Service Excellence Awards,” stated Mahmood Al Bastaki, director of Dubai Trade. “We believe that the transformation to electronic services can bring about major positive changes in conducting trade activities. It is with

Dthis perspective that Dubai Trade is designing and upgrading its integrated services.”

Th e team from Danzas walked away with the highest honour of the night, while Unique Sea Cargo Services was named as platinum performer, Globelink West Star Shipping as gold performer, Al Areesh Cargo Clearing & General Transport as silver performer and Silk Road Shipping as bronze performer.

“Th rough ESEA, Dubai Trade is keeping its pledge to promote e-services and facilitate easier trade fl ow,” stated Salma Hareb, CEO of Economic Zones World, who provided a keynote speech at the ceremony. “Th ese winners have proved the remarkable way that performance can be enhanced through the adoption of electronic transaction methods.”

Dubai Trade honours e-service achievements

NEWS UPDATE

Salma Hareb (EZW)

provided a keynote speech Salim Ahmed Khan (Dubai World) with Jubil

Thankachan and Ravi Kurhade from Maersk Line

Salma Hareb (EZW) and Mahmood Al Bastaki (Dubai Trade)

on stage with winners from the E-Service Excellence Awards

Sebastian Thomas (ZAFCO) with Jayant Dey (Logistics Middle East)

Page 17: Logistics Middle East - Feb 2010

NEWS UPDATE

Dirk Van Den Bosch (DP World), Steven Lai

(Rais Hassan Saadi), Mansoor Ghafoor (NAFL)

and Robeel Haq (Logistics Middle East)

Mahmood Al Bastaki (Dubai Trade)

B.S. Krishna Moorthy, Swapan Choudhury, V.S. Santosh Kumar, Bhuvana Acharva and Anthony Crasto from Landmark Group

Salma Hareb (EZW) and Mahmood Al Bastaki (Dubai Trade) present an award to Eric Pilling (Danzas)

Emirates Line’s Biswajit Mukherjee, Aijaz

Ahmed, Shahul Hameed, with Steven Lai (Rais

Hassan Saadi) and Nayana Nandkumar (DSAA)

V.S. Santosh Kumar from

Landmark Group and Eddie

Diaz from Al Ghurair Foods

13www.arabiansupplychain.com | FEBRUARY 2010

Page 18: Logistics Middle East - Feb 2010

FEBRUARY 2010 | www.arabiansupplychain.com14

EDITOR’S CHOICES

SPOT POLL

Will 2010 bring a higher number of mergers and acquisitions for the Middle East logistics sector?

59.1% 18.2%22.7%Yes, we can expect more consolidation in the logistics sector

The online home of:Still hungry for more news?

for regular updates on the Middle East logistics industry

ONLINE INTERVIEW

System UpgradeMercator vice president of sales and market development Duncan Alexander explains how the fi rm’s products and services can benefi t companies in the cargo sector.

PHOTO SPECIAL

Haiti Logistics OperationsA selection of photographs from across the world of humanitarian logistics operations, following the tragic earthquake that shattered the Republic of Haiti last month.

MOST TALKED ABOUT LOGISTICS COMPANIES ON ARABIANSUPPLYCHAIN.COM

Aramex

GAC Logistics

Jebel Ali Free Zone

ACME Group

DHL Express

MOST POPULAR HEADLINES

1 Aramex’s Fadi Ghandour tops logistics power list

2 Jebel Ali upgrades tobenefi t logistics sector

3 Saudi man arrested in Manila for posing as pilot

4 Aramex CEO pushes for human capital investment

5 GAC merges UK shipping and logistics operations

WEBSITE STATISTICS

ONLINE HIGHLIGHTS

Maybe a little, but levels will remain roughly the same

No, such activities are quite rare in the Middle East market

Dubai Customs has launched a Consultative Council to bolster its relationship with companies in the logistics industry. Th e initiative was announced last month by H.E. Ahmed Butti Ahmed, director general of Dubai Customs, and has already been hailed by a number of leading players from the regional market, including FedEx Middle East and the National Association of Freight and Logistics (NAFL).

“On every scale, this is defi nitely a step forward and provides the business community with confi dence that their views are being taken into account by the government,” commented Hamdi Osman, senior vice president of FedEx in the Middle East, Indian subcontinent and Africa.

According to Captain Mansoor Ghafoor, president of the NAFL, the council will consist of various traders and heads of business groups from the emirate, with approximately four meetings being held a year. “Dubai Customs has adopted an open door policy with its clients and always welcomes our suggestions and opinions,” he explained. “However, the council will reinforce this relation and constitute a party where our business visions and expectations from the Customs department can meet.”

Trade council launched by Dubai Customs

Page 19: Logistics Middle East - Feb 2010
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MATERIAL HANDLING MIDDLE EAST REPORT 2010

WHAT DOES THE FUTURE HOLD FOR THE MIDDLE EAST MARKET?

HANDLINGMATERIAL

REPORT

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MATERIAL HANDLING MIDDLE EAST REPORT 2010

uff ering at the hands of a global recession, the material handling sector has fi nally experienced its fi rst green shoots of recovery, according

to a trade report by Frost & Sullivan. In particular, the developing economies of India and China are expected to lead the market’s much-awaited revival, while Middle Eastern countries such as Saudi Arabia, Bahrain and the United Arab Emirates will also commence their rebounds in 2010. Th e forecast will undoubtedly be welcomed withopen arms by local trade suppliers, who have suff ered to varying degrees from the cautious spending habits of clients in the regional logistics industry.

Stewart Arbuckle, managing director of Dubai-based warehouse solutions specialist Loc8, believes that a growing number of companies in the Middle East will invest in upgrades to their material handling solutions this year, moving away from the common ‘wait-and-watch’ approach of 2009.

“Last year’s sudden crisis did have an impact on the market, leading to a period of fl at demand, although this was related to buyers adopting a more cautionary approach than normal to expenditure,” he reasons.

“Th at attitude has started to change now and we’re noticing a return in confi dence. According to Emirates Industrial Bank, resurgent growth in the UAE economy is forecast at 5%, based on non-oil expansion and the expected increase in oil prices and crude output. In fact, banks throughout the Gulf are set to ease on lending, based on a consensus of a brighter 2010, which will further stimulate the market and fuel growth,” he continues.

Arbuckle’s opinions are supported by the results of Logistics Middle East’s fi rst readership survey on the material handling sector, which questioned around 250 senior professionals from the industry about their

purchasing habits. In total, 91.4% of respondents stated their companies were planning to spend on material handling products such as forklift trucks, pallets and warehouse racking in 2010. Approximately 64.3% would purchase these solutions exclusively from the Middle East, while the remaining amount

was planning to source from both the Middle East and other global markets.

Such demand is expected to drive the development of ‘smaller but smarter’ material handling technologies, according to the Frost & Sullivan report, with an appealing range of modern functions, such as touch screen interfaces, upgraded software, and distributed control functions, which obviate the need for bulky control panels. More specifi cally to the Arab world, 58.7% of respondents to Logistics Middle East’s survey were considering an investment in automated storage, based on the belief that warehouse automation would eventually become commonplace. Th e remaining 41.3% stated that automation was a possibility for their future operations, although not suitable at the moment.

“Th e recession has increased the need for companies to improve their supply chain effi ciencies to make their overall operations more profi cient and cost-eff ective. While a portion of the logistics industry will adopt a cost-cutting approach, others will achieve these goals with the implementation of technology solutions or automated handling,” reasons Arbuckle.

“Logistics operators are more and more open to the use of technology in the picking and handling environment and this will lead to future opportunities for voice-controlled picking solutions, container unloading systems, pick-to-light technology and other related products.”

Faced with environmental pressure, green initiatives are also poised to pick up steam in the material handling industry. Industrial practitioners are displaying a preference for environmentally responsible material handling systems that reduce emission levels and produce less noise. To ensure greater uptake of material handling systems, new technologies must be developed to ratchet down costs and improve the overall return on investment.

“Th e material handling market is fast-paced and manufacturers must keep themselves updated with customer demands, with constant research and development, together with faster innovation rates. Th is is a common need throughout the world, including the Middle East, where customers are very focused on searching for good solutions that are available at the right price and provide quality for their business requirements,” concludes Arbuckle.

“In addition, the most valuable asset for buyers in this region is the local support and added-value that is brought to the table by distributors. As the Logistics Middle East material handling survey has shown, the vast majority of customers in the Middle East will purchase their solutions locally, allowing them to benefi t from better communication and after-sales service. However, with 25.1% rating after-sales service as poor, compared to only 3% rating it excellence, it seems that customers generally believe there are some improvements to be made in this area over the coming years.”

“The material handling market is fast-paced and

manufacturers must keep themselves

updated”

“The mhandling marketis fast-paced and

nufacturers must eep themselves

updated”

S

DLcut‘

iobt

aA

Read the complete results of the Logistics Middle East material handling survey, sponsored by SPAN Group, over the next three pages…

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18 FEBRUARY 2010 | www.arabiansupplychain.com

SPONSORED BY

MATERIAL HANDLING MIDDLE EAST REPORT 2010

Welcome to the results of Logistics Middle East’s material handling survey, sponsored by SPAN Group – the fi rst comprehensive study of its kind aimed at material handling purchases from across the region. The survey was conducted over the course of six weeks through a number of different outlets, including www.ArabianSupplyChain.com, and has been designed to access market trends, industry progress and potential challenges in the future.

MARKET SURVEY: MATERIAL HANDLING MIDDLE EAST

When was the last time your company purchased material handling products for a warehouse?

Has your company’s purchasing of material handling solutions been impacted by the global recession?

14.3% Yes, we have reduced our purchasing until the economy improves

35.2% To a certain degree, there have been some cutbacks in purchasing

50.5% No, these are long-term investments and we have purchased as normal

Reader Comment: “Due to suffi cient business volumes, we have not been forced to reduce our purchase of material handling solutions in 2009. However, we have

benefi ted from the global recession, because our team was able to negotiate better rates”

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19www.arabiansupplychain.com | FEBRUARY 2010

SPONSORED BY

MATERIAL HANDLING MIDDLE EAST REPORT 2010

Reader Comment:

“We are not considering fully-automated storage at

this stage. However, we always look for opportunities to improve

our operations, so automation could be considered in the future, especially with our

garment business”

Do you source the bulk of your material handling solutions in the Middle East orfrom other markets around the world?

64.3% The vast majority is purchased locally

35.7% A combination of local and international sources

{None of the respondents purchased exclusively from overseas}

Do you believe that companies have enough choices when selecting their material handling products in the Middle East region?

18.4%

61.7%

19.9%

Which factors have the maximum impact of your future purchasing decisions?

72.9% Past experience with a brand is the biggest infl uence in product selection

17.3% Word-of-mouth and recommendations have a major impact on purchases

9.8% Focus on marketing initiatives and advertisements

Are you planning to purchase any material handling solutions in the coming year?

14.3% Yes, a signifi cant investment will be made

77.1% Yes, some purchases will occur

8.6% No, nothing in the next year

Page 24: Logistics Middle East - Feb 2010

20 FEBRUARY 2010 | www.arabiansupplychain.com

SPONSORED BY

MATERIAL HANDLING MIDDLE EAST REPORT 2010

Do you believe there is value in large-scale material handling exhibitions in the Middle East, such as the Materials Handling Show?

Would you consider automated storage in the future?

58.7% Yes, these will become commonplace in warehouses

41.3%Perhaps, although they are not suitable at the moment

0%Never, I prefer manual solutions for warehouses

How would you describe after-sales service from Middle East suppliers?

Approximately 250 material handling purchasers from across the Middle

East took part in this survey, including representatives from Arabian Trading

Supplies, CEVA Logistics, Modern Freight Company (MFC), DHL, Global Shipping & Logistics (GSL), ZADCO, Maximus Air Cargo, Tamer Group, Al-Futtaim Logistics, Al Majdouie Group, RSA Logistics, Integrated

Freight & Logistics, Emirates SkyCargo and Al Madina Logistics.

3% Excellent and world-class

71.9% Satisfactory although room for improvement

25.1% Poor and insuffi cient

How do the prices for material handling solutions in the Middle East compare to other markets around the world?

3.6% Costs are cheaper in this region

66.8% There is little difference in the prices

29.6% Purchasing is more expensive in the Middle East

Reader Comment:

“The recession has made us better managers of

purchasing. Some purchases are long-term investments, hence they

have gone ahead as planned, others have been shelved as

these are conveniences rather than needs”

Page 25: Logistics Middle East - Feb 2010

Delivering a new product to theU.A.E market

SPAN-Group, the leading provider of storage solutions has partnered with Jungheinrich, one of theworld's largest supplier of industrial trucks to complete its broad range of solutions.Jungheinrich products are made in Germany and include over 600 different vehicles: pallet trucks, forklifts,stackers, reach trucks, order pickers... that cater for all warehouse operations.

For product inquiry, please contact SPAN-Group:Dubai - United Arab Emirates: Tel: (+971) 4 289 5111 - Fax: (+971) 4 289 5110Doha - Qatar: Tel: (+974) 443 1166 - Fax: (+974) 432 8642Beirut - Lebanon: Tel: (+961) 1 888 288 - Fax: (+961) 1 902 690Email: [email protected] - website: www.span-group.com

Page 26: Logistics Middle East - Feb 2010

22 FEBRUARY 2010 | www.arabiansupplychain.com

MATERIAL HANDLING MIDDLE EAST REPORT 2010

MATERIAL WORLD

As one of the fi rst companies to enter the Middle East material handling sector back in the late 1980s, Walid Daniel explains how SPAN Group has maintained its leadership position in the industry.

Page 27: Logistics Middle East - Feb 2010

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MATERIAL HANDLING MIDDLE EAST REPORT 2010

ith such a large number of material handling providers in the Middle East these days, it’s hard to remember a time when the market

was served by only a handful of dedicated companies. However, for Walid Daniel, managing director of SPAN Group, those early days are fresh in his memory, providing a pleasant reminder of how his business has not only survived the numerous peaks and troughs of the past 20 years, but developed into a regional powerhouse along the way.

SPAN started its operations with humble beginnings in 1989 as a Dubai-based company that provided system shelving and pallet racking to customers in the United Arab Emirates. “Back then, the main activity was focused around the industrial areas of Aweer, Mussafah, Rashidiyah, Al Quoz and Sharjah. Th ere were very few warehouses as we know them today and very few companies were using racking systems,” Daniel reminisces. “Although our start was modest, we had a primary objective from the beginning and that was to utilise our knowledge to benefi t clients and provide them with solutions that made sense.”

Looking back at the late 1980s, around fi ve companies were active in the local storage solutions market, of which only a couple are still around today, the most prominent being the SPAN Group. “Competitors have come and gone, which shows that companies require a

lot of attention and eff ort to survive and adapt to changes,” Daniel smiles. “To be honest, it has been an interesting and challenging uphill journey. We have managed to develop our company by constantly improving and bringing storage solutions that made sense to customers, while maintaining quality and personalised services.”

Th e growth of the SPAN Group has been staggered over the years, starting with the import of racking solutions from Europe and North America, followed by the launch of a design and customer service unit that helps businesses to incorporate the most suitable warehouse layouts. In the early nineties, this portfolio was expanded to include light material handling equipment, dock levellers, packing equipment, carton sealing, strapping and stretch wrapping machines, while warehouse management systems and barcoding were also incorporated into a new IT division in the mid-nineties.

To support the diversity of these activities, SPAN Group also established a centre of excellent for warehouse design and operations, managed by a dedicated engineering and research division. “Th is was a focal point in our growth strategy, as we managed with the help of a professional engineering unit to work on large project designs for the most prestigious warehouses and distribution centres in the region,” states Daniel. “Th is led to an increase in business volumes and gave us the knowledge base and opportunity to design

and contract manufacture our own branded racking products, with added features and advantages specifi c to our local market. We further expanded by acquiring distribution rights for the full range of Jungheinrich trucks, in addition to the launch of our warehouse automation division, which provides solutions such as ASRS, sorters, conveyors, garment on hangers, carousels and shuttle systems.”

At present, SPAN Group has around 250 employees and covers most countries in the GCC and wider Middle East region, with a head offi ce in Dubai and supporting facilities in Qatar and Lebanon. Smaller offi ces are also

SPAN Group has experienced a considerable amount of success in the past 20 years, with over 250 employees now operating from offi ces throughout the Middle East region

W

Company: SPAN GroupEstablished: 1989Employees: 250Customers: Over 2000 clients from various industries have been servedOffi ce locations: Dubai (head offi ce), Saudi Arabia, Qatar, Lebanon, Abu Dhabi and forthcoming facility in JordanDescription: Integrated provider of warehouse design, engineering, shelving, racking, IT supply chain systems, material handling equipment and warehouse automation for the logistics and distribution industriesAwards: Material Handling Provider of the Year (SCATA 2009)

COMPANY PROFILE

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MATERIAL HANDLING MIDDLE EAST REPORT 2010

operational in Abu Dhabi and Saudi Arabia, with plans to expand into Jordan and even further afi eld, following the launch of a recent joint venture in India.

“Growth and expansion come with a lot of planning eff ort and sacrifi ces,” states Daniel. “We learned a lot along the way to becoming a leading company in this fi eld. To make a story very short, and not talk about the text book challenges that every company faces, the transition to a successful business is revenue and the main challenge to bringing this revenue lays in how a vendor treats its customers. In essence, the main challenge is to make your customers and vendors feel the true partnership spirit.”

Th e importance of such partnerships has been reinforced in recent years, with a growing number of competitors being established in the Middle East, together with an infl ux on international players also entering the local market. However, such developments have left Daniel unfazed, especially since he’s grown used to witnessing the rise and fall of numerous rivals. “At any given point in time there is competition. Th is is good because it keeps us alert, but most importantly, it provides an opportunity for customers to interact with multiple vendors and compare prices, knowledge, expertise and service levels,” he states.

“Over the years, I have experienced some companies entering the market and some companies exiting the market. Each entry and exit comes with its own challenges and lessons to be learned.”

If anything, the global recession has fuelled even more changes in the market, although SPAN Group has utilised its vast experience to implement a development strategy that

focuses on the positives. “Every change in the market comes with opportunities. It is true that business volumes were somewhat aff ected in our main market in the GCC and we were faced early on, like all other companies, with the prospect of scaling down and letting some staff go. However, we have

worked very hard on developing our people and they have become our biggest asset,” he admits. “So, we re-organised our geography and our attention to smaller markets, such as Oman, Jordan, Lebanon, Syria, while also focusing on entering India and Africa. I am more than happy to now see the positive results of this re-o r g a n i s a t i o n . Moving forward, we have plenty of other surprises in store for the market and the entire team is optimistic about our continued success in 2010.”

Walid Daniel (right) decided to focus on smaller markets such as Oman, Jordan and Lebanon during the recession

“Every change in the market comes with

opportunities”

“Every change in the market

yy

comes withpportunities”

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MATERIAL HANDLING MIDDLE EAST REPORT 2010

INMA PALLETS - SATTAM AL BUKHARI, MANAGER OF OPERATIONS AND TECHNOLOGY

What material handling solutions does your company provide in the Middle East?Inma Pallets Company provides all types of wooden material handling products, mainly wooden pallets in different sizes, in addition to cable reels wood bobbins, frames, boxes and containers.

How strong is demand for material handling solutions in the Middle East?In the wooden pallets business, the main market is the petrochemical industry, which is still growing considerably in the MENA region. Demand in the Saudi Arabian

In your opinion, what type of products will be particularly popular in 2010?Wood handling materials will remain the most popular, as the other products like plastic are not yet feasible enough for the market.

What are your predictions for the Middle East material handling market in 2010?Higher growth, higher quality expectations, and a quicker response time to the demand.

LOGSQUARE - JACQUES ADEM, EXECUTIVE DIRECTOR

What material handling solutions does your company provide in the Middle East?LogSquare offers a spectrum of innovative solutions with a focus on automated handling and storage applications. We have a complete

range of integrated solutions and services, including conveyors and sortation systems, automated storage and retrieval systems, advanced picking modules,

systems and controls, garment on Hanger applications (GOH) and vertical movers, in addition to the c o n v e n t i o n a l storage range. We take pride in our capabilities to handle complex app l i c a t i ons which require tailoring and

customisation.

How strong is demand for material handling solutions in the Middle East?The Middle East was a fertile ground for the material handling industry, especially in the last three years and we believe that it will remain a good market, despite the correction for reasons pertaining to demography, development and investment in infrastructure.

How do you convince companies to invest in material handling during the downturn?Our range of solutions and approach is geared at optimisation and enhanced effi ciency. The global downturn pushed all companies to review their processes and optimise.

Is there a lot of competition in the market?The Middle East is an open market and the majority of the players are focusing on the classical range. Our main challenge is promoting awareness and acceptance for our range of solutions.

Which companies are using your products?Despite our young age, several companies use our

INMA PALLETS - SATTAMAL BUKHARI MANAGER OF

MATERIAL HANDLING MIDDLE EAST

market alone is over ten million new ISPM#15 approved pallets this year. That’s in addition to other industries.

How do you convince companies to invest in material handling solutions during the global downturn? Well, Inma Pallets Company been in the business for more than 20 years and was the fi rst manufacturer producing wooden pallets in large volumes. During the global downturn, we managed the business through our existing customers in Saudi Arabia. As stated, the Kingdom appears to be better positioned to weather the downturn and Inma Pallets has also benefi ted from being a member of the Khalid Ali Alturki & Sons group of companies, a major industrial conglomerate operating in Saudi Arabia for over thirty years.

Is there a lot of competition in the market? Surely competition is there, however competitors with large production capacity are limited. I would say there is room for all players to sell their products.

Which companies are using your products?Major clients include Saudi Aramco, Al Waha Petrochemicals Company, Gulf Packaging Industries, Qatar Chemical Company, and Gulf Warehousing & Distribution Centre.

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solutions, including Saud Bahwan Group, Aramex, Jotun and Al Khalij Sugar.

In your opinion, what type of products will be particularly popular in 2010?In 2010 I expect to see a growing demand for intra logistics automated transportation systems, such as conveyors. That said, the most popular products will be conventional pallet racking solutions.

What are your predictions for the Middle East material handling market in 2010?This will be a challenging year for the material handling industry, project cycles and planning approaches will embrace a return to the valuable basics.

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MATERIAL HANDLING MIDDLE EAST REPORT 2010

SICK SENSOR INTELLIGENCE - JULIAN SPERRING-TOY, MIDDLE EAST BUSINESS DIRECTOR

What range of material handling solutions does your company provide to customers in the Middle East?We provide a diverse portfolio of solutions for airports, shipping ports, warehouses, courier and express logistics operations, plus thousands of applications for manufacturing companies. We have solutions for any company that moves an item from one place to another - whether in a manufacturing line, aircraft or delivery truck.

How strong is local demand for material handling solutions?Although great strides have been taken in the past 10 years or so, I believe the Middle East still lags behind Europe, North America and parts of the Far East in its materials handling investment, and this impacts demand. This situation is changing slowly, and leads to increasing demand year on year.

How do you convince companies to invest in material handling solutions during the global downturn?By working with our clients to identify problematic areas of their operations that are costing them money, or are lacking effi ciency, or could be improved to save costs. This gives us an idea on a return on investment, without this, there is no imperative to act. We never approach our clients with ‘something to sell’, we work with them to understand how we can improve their operations.

Is there a lot of competition in the regional market? There is a lot of competition in all markets. However, due to the broad product range of SICK (35,000 distinct products and solutions), we can make ourselves standout from the rest of the crowd - no other company in our market can offer such a diverse range of products.

In your opinion, what type of products will be particularly popular in the Middle East over the coming year?Any product or solution that can increase productivity, raise effi ciency levels, improve the bottom line and has a defi nite, demonstrable and short return on investment will always be popular. When SICK approaches the market with our solutions, we make sure that we can tick all of these boxes for the user.

What are your market predictions for the Middle East in 2010?I don’t think we are out of the woods just yet as far as the economic slowdown goes. However, the region’s materials handling companies are well placed to emerge from the downturn in a much stronger position. Additionally, I believe the development of world-class warehousing facilities around the region could start to threaten Dubai’s traditional dominance as the regional logistics hub.

INTERMETAL - ATANAS KHAJERIAN, SALES MANAGER OF RACKING DIVISION

What range of material handling solutions does your company provide to customers in the Middle East? Interack, manufactured by Intermetal, supplies customised industrial storage systems. With a well-resourced design and sales team, we work closely with our clients to supply the most effi cient and cost effective racking solutions. The Interack product range includes selective pallet racking, drive–in racking, multi–tier racking systems, galvanized fl oor gratings and drive–in satellite systems.

How strong is local demand for material handling solutions?Although the worldwide fi nancial crisis has affected many businesses, the Middle East is still a growing market and the demand for material handling solutions is still strong. Intermetal is committed to working closely with our customers to ensure that we provide the right solutions that meet their specifi c requirements. Being a local manufacturer will enable us to meet the demands of our customers promptly.

How do you convince companies to invest in material handling solutions during the global downturn?The situation has forced many to re-think their expectations and control their costs. Substantial savings come through the better use of space, as land and warehouse building costs have recently soared. Interack allows customers to maximise the use of space and reduce costs. The investment pays for itself in a relatively short time.

Is there a lot of competition in the regional market?There are a number of storage system suppliers in this region. The competition is high, but this forces manufactures such as ourselves to come up with innovative solutions to benefi t the customer. Intermetal’s advantage is that we provide solutions that meet exact requirements. We design, manufacture, supply, install and offer complete after sales support and maintenance.

What are your predictions for the Middle East material handling market in 2010?Intermetal has witnessed an upswing in orders and inquiries for Interack in the third quarter of 2009, signalling a return to confi dence in the economy. We see a better 2010 compared to 2009 and we have positioned ourselves to take advantage of this with the start up of a new factory in Dubai.

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MATERIAL HANDLING MIDDLE EAST REPORT 2010

ACME GROUP - NAVIN NARAYAN, DIRECTOR

What material handling solutions does your company provide in the Middle East?ACME Group is an intralogistics system integrator that provides a wide range of solutions, such as pallet racking, drive-in, high density racking, boltless shelving, order fulfi lment solutions and sorters, forklifts, reach trucks as well as conveying systems. We also provide consultancy in facility design and warehouse management systems.

How strong is demand for material handling solutions in the Middle East?The Middle East has traditionally been at the cross-roads connecting the developed and emerging economies and hence, always had a great demand for material handling solutions. However, it is only in recent times that we see organisations implementing new generation technologies to optimise their supply chain management systems.

How do you convince companies to invest in material handling during a downturn?In developed economies, organisations will

pharmaceutical distributors, manufacturers and public sector companies.

What are your predictions for the Middle East material handling market in 2010?There will be more investment in automated, intelligent and high density warehouse solutions that help in improving the bottom line.

UNITED MOTORS & HEAVY EQUIPMENT COMPANY - G. VENKAT, DIVISIONAL MANAGER OF HEAVY EQUIPMENT AND MATERIAL HANDLING

What material handling solutions does your company provide in the Middle East?We are the authorised dealer for Yale Material Handling equipment in the United Arab Emirates. Yale, being a pioneer in the fi eld of material handling, has a wide range of products, right from hand pallet trucks to VNA (Very Narrow Aisle) trucks that cater to 17 metre heights in a warehouse. In the counterbalance sector, Yale has varieties in battery, gas and diesel ranges.

How strong is demand in the Middle East?In these recession days, some of the projects are deferred indefi nitely. Nonetheless, there are industries such as logistics and fast moving consumer goods (FMCG) sectors, where demand is still healthy.

How do you convince companies to invest in material handling during the downturn? This is the best time for investment and consolidation. We provide the total solution and advise our customers to implement in phases. Once the market picks up, the customer is ready for the take off.

Do you face much competition?There is a stiff competition from European, Japanese and American manufacturers. Even the Chinese manufacturers have their stake in the Middle East.

What makes your products different?Yale scores over them in all aspects, including cost of ownership, productivity and also in overall ergonomics.

Which clients are using your products?Our customers are mainly logistics companies, food chain companies, retail companies and those in production units.

generate the bulk of their profi ts by holding a very tight leash on the supply chain. Getting lean and effi cient is of paramount importance in the current economic scenario. At ACME, we focus on highlighting the return on investments that our solutions can bring.

Is there a lot of competition in the market?Yes, I would say that the regional market is quite saturated. Margins are wafer thin and a fair share of the competition focuses on product sales and a quick project turnaround, instead of providing a long-term solution that takes into account the needs of customers.

What makes your products different to others in the market?Our differentiation is not in the products alone. It is a combination of the products we carry and the service we provide. We focus on developing long-term strategic partnerships with our clientele and hence we are a part of their endeavours to keep abreast with innovations in products and processes.

Which companies are using your products?Traditionally we have provided solutions to retail chains, food and beverage distributors,

In your opinion, what type of products will be particularly popular in 2010?Even during recession time, Yale has launched ten new models, such as the new series of NextGEN Yale Trucks, which are built to increase the overall effi ciency of operations.

What are your predictions for the Middle East material handling market in 2010?I believe that opportunities continue to prevail for warehousing products, especially in the consumer industries.

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MATERIAL HANDLING MIDDLE EAST REPORT 2010

Ask the manufacturer to meet your needs – from bins to high-rise installations + concept-to-completion consultancy

BITO STORAGE SYSTEMS MIDDLE EAST (FZE)P.O.Box 8838 Sharjah Airport Int. Free Zone Sharjah, UAE

Shelving & Racking · Bins · Accessories

www.bito.ae

solutions!Ef cient

STORAGE SOLUTIONSinnovative

What range of material handling solutions does your company provide in the Middle East?BITO has a focus on two core businesses. The fi rst is shelving and racking, which includes complex storage solutions such as carton and pallet live storage, drive-in/push-back pallet racking, multi-tier installations and automated bin/tray storage installation. The second focus is bins and containers, like storage bins with pick opening, stacking containers, and small parts containers.

How strong is local demand for material handling solutions? Storage and order picking has become an economic factor in almost every industry. It’s our responsibility to show the potential and return on invest of effi cient products and solutions.

How do you convince companies to invest in material handling solutions during the global downturn?Companies in this region have seen enormous growth rates in recent years and they know that the region has enormous potential for a long lasting period to come. Firms are suffering with cheap or even non-existent storage solutions already.

Is there a lot of competition in the regional market?BITO started its subsidiary in the UAE only a few months ago with a small team. We have competition which is established by brand and action in this region. Nevertheless we are partnering with our competitors too. In special solutions like pallet and carton live storage, boltless shelving and especially in bins we can help each other to give outstanding solutions to our customers.

What makes your products different to others in the market?First of all, we manufacture in Germany where we have been based for the last 160 years, with 50 years of experience specifi cally in storage solutions. The second difference is that we are not only a manufacturer but also a professional partner for all project-related tasks, ranging from layout planning, realisation and project management to assembly and after-sales-service, whether that relates to complex and demanding storage facilities with different systems or automated installations for bin or tray storage. We will set new standards too in the second half of 2010 with an outstanding service to end users.

Which companies are using your products in the region?Despite being a newcomer in the region, we have entered fi nal talks with numerous logistic companies and medium-sized fi rms. We have already done some fantastic projects with Airbus, Emirates Flight Catering and Al Buheira LACNOR Dairies.

What are your market predictions for the Middle East in 2010?In many areas I believe the market will still feel the impact of the downturn, but the potential will remain. The amount of potential will depend on the efforts of each and every player. It’s important that the industry as a whole takes a united approach for this challenge.

BITO STORAGE SYSTEMS - CHRISTIAN GEBLER, MIDDLE EAST GENERAL MANAGER

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MATERIAL HANDLING MIDDLE EAST REPORT 2010

CHEP MIDDLE EAST - KEVIN SMYTH, MIDDLE EAST DIRECTOR

What material handling solutions does your company provide in the Middle East?CHEP Middle East offers pallet pooling and supply chain consulting services, along with advice on pallet specifi cations and pallet handling procedures.

How strong is local demand for material handling solutions? There is a pent up, often unappreciated demand for more cost-effective materials handling solutions in the Middle East.

What makes your products different to others suppliers in the market? Our pallet pooling concept is a service rather than a product, whereby companies will share the cost of the pallet on a daily hire basis as it is shipped along the supply chain. It differs from other 3PL services in that it requires buy-in from all companies in the

Refreshments Company (Pepsi), National Food Industries, Procter & Gamble (P&G), Hyper Panda and SIPCO, just to name a few.

What are your future market predictions?The market will continue to change with the adoption of more effi cient storage and product handling methods.Growing awareness of environmental and health and safety issues is also likely to start having an impact.

FAMCO - DAVID DRONFIELD, DIVISIONAL MANAGER OF STORAGE AND HANDLING SOLUTIONS DIVISION

What material handling solutions does your company provide in the Middle East?FAMCO provides solutions that cover the entire functionality of a warehouse or distribution centre. This includes the full range of Linde forklift trucks from Germany, as well as docking solutions for the loading and unloading of transportation vehicles. These systems are designed in conjunction with the forklift trucks to ensure effi cient operation. FAMCO can also design conveying solutions for pallet and package handling, and we can implement turnkey garment on hanger solutions.

How strong is demand in the local market? The Middle East has developed its capabilities to become a major international logistics hub in the past decade. The arrival and dispatch of each and every product demands various items of materials handling equipment, specifi ed for maximum effi ciency and lowest unit cost of handling. Of course, the fl ow of world trade has slowed and the movement through and into the Middle East has also witnessed reduced transit and domestic volumes. As a result, the purchase of materials handling equipment is now heavily focused on productivity.

How do you convince companies to invest in material handling during the downturn?Customers are even more focused on cost reduction at the moment. This does not necessarily mean the “cheapest” machine, but a solution that is derived from full cost benefi t analysis and lifetime cycle costs. It means machines that deliver higher levels of performance at greater speeds with reduced energy requirements and lower operating and maintenance costs.

Is there a lot of competition in the market?There is an increasing number of competitors

offering cheap prices, but the amount of suppliers offering the best solutions is limited, and FAMCO remains a major provider of quality in the market.

FMCG supply chain to work cost effectively and effi ciently. This requires co-operation and a win-win mindset from all participants.

How do you convince companies to invest in material handling solutions during the global downturn? It is always diffi cult to appreciate the hidden costs of materials handling procedures when they are not managed with costs dispersed throughout the organisation.

Is there a lot of competition in the market? It is not a case of competition, which is good, but rather a lack of industry standards and co-operation that hinders the introduction of new ideas.

Which companies are using your products in the Middle East?CHEP is currently doing business with over 600 clients in the region, with many of these companies being the region’s biggest FMCG brands, such as Abudawood, International

In your opinion, what type of products will be particularly popular in 2010?The market is shifting from bulk storage to handling solutions that move products faster and over greater distances. Cross docking operations will increase as operators strive to reduce inventory, which requires equipment dedicated to the rapid movement of palletised goods between docking operations within a distribution operation.

What are your future market predictions?Operators want to maximise the effectiveness of existing facilities and operations, based on fulfi lling the customer orders as quickly, effi ciently and economically as possible.

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MATERIAL HANDLING MIDDLE EAST REPORT 2010

[email protected]

What range of material handling solutions does your company provide in the Middle East?Godrej & Boyce provides a wide range of storage equipments, such as racking and shelving, digital pick solutions, counter balance forklifts, warehouse trucks and a variety of attachments.

How strong is local demand for material handling solutions? Being a logistic hub, I would state

that demand is very good and has actually been rising for our company through increased awareness, as shown by our year-on-year growth.

How do you convince companies to invest in material handling solutions during the global downturn? As a company, Godrej & Boyce has been operating for more than 110 years and braved many economic cycles. Our solutions are reliable and offer value for money. With our setup in the United Arab Emirates, we can provide tailor-made products and services direct to the client.

Is there a lot of competition in the regional market?Yes, competition is quite high in the storage side. However, only a few companies have a complete set-up, the rest are traders with limited know-how. Competition is moderate in material handling equipments.

What makes your products different to others in the market?Godrej & Boyce is well-diversifi ed, with a global presence and world-class design and manufacturing capabilities, which helps to provide customers with customised products at a reasonable cost and schedule. It’s in our genes to focus on providing technically sound products and solutions and we never compromise on design safety. As a natural outcome, our products are quite rugged and last a long time, which is always appreciated by customers. Finally, our direct presence as a principal with two offi ces in Middle East helps to create a better understanding of customer requirements and we can translate this into specifi c solutions.

Which companies are using your products in the region?Our products are being used by companies in various different industries, including oil fi elds, manufacturing, government, defence, jewellery, construction, aviation, logistics, trading, contracting, engineering, relief missions, reconstruction projects, food processing and cold stores.

In your opinion, what type of products will be particularly popular in the Middle East over the coming year?With growing awareness of global warming, demand will be strong for battery/electric operated equipment and solutions that use clean fuel. Also cost effective and highly productive products will be popular.

What are your market predictions for the Middle East in 2010?Stability should be returning and we expect demand to continue. Many companies which had postponed their requirements last year have started buying, plus demand has been steady in markets like Saudi Arabia, Qatar, Oman and Bahrain.

GODREJ & BOYCE - KRISHNA RAJ, REGIONAL MANAGER OF STORAGE SOLUTIONS GROUP

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32 February 2010 | www.arabiansupplychain.com

ASK THE EXPERT

THE HISTORY OF NICHE LOGISTICS IN MIDDLE EASTERN COUNTRIESAlthough vertical specialisation has received a lot of attention in the logistics industry over the past couple of years, it cannot actually be considered a new trend. On the contrary, this is a well-known approach to logistics services in mature markets such as Europe and North America. Due to their sheer size, we fi nd a multitude of logistics service providers (LSPs) in these markets with a broad range of specialisations on individual industry verticals, such as A. Talke in Europe for petrochemical logistics, or the large-scale players that cover a broad set of vertical specialisations under the common global brand, such as DHL or UPS.

THE ADVANTAGES OF VERTICAL SPECIALISATION IN LOGISTICSA focus on the needs of a specifi c vertical industry allows the LSPs to develop the required skills, know how and capabilities to serve the respective industry (e.g. petrochemical industry, pharmaceutical industry, etc.) in a better and more adaptive way. In addition, this focus often allows the LSPs to develop economies of scale along the dimensions cost position and customer lock-in. Illustratively, a LSP with a specialisation on pharmaceuticals who already serves key brands of the industry has to stop at each chemistry in his service area. Hence, to add an additional brand does not require the LSP to do additional stops in his service area and in consequence the distribution costs are marginal. In consequence, the LSP which has the largest amount of pharmaceutical brands will have the lowest unit cost of distribution and should be able to lock-in his customers – the pharmaceutical producers – based on lowest prices. Overall, industry specialisation generates value for the LSP as he can attract the highest volumes and the customer achieves lower logistics costs.

WHY THIS ESTABLISHED BUSINESS MODEL LOOKS NEW TO THE REGIONBased on agent laws and a strong preferenceto keep logistics in-house in the Middle East, LSPs could not fi nd enough customers to develop a vertical specialisation. Also, the logistics market is highly fragmented withmany small LSPs. In consequence, none of the small players were able to build suffi cient size and economies of scale to achieve the respective advantageous cost/price position. In response, they were forced to serve a broad portfolio of vertical industries to achieve an acceptable size of the business. We estimate that the pharmaceuticals and hospital logistics market in all six GCC countries will amount to only US$250 million. Assuming three or four LSPs serve each of the national markets will provide an indication about the small share that each player can achieve.

KEY TRENDS FOR THE FUTUREWe expect the trend towards vertical specialisation will continue and more service off erings will become available. Th is will be fuelled by the continuous growth of Middle Eastern/North African economies, population and wealth. As the logistics market in specifi c industry verticals grows, it will become more feasible for LSPs to serve these verticals with specialised services. In addition, the majority of logistics services in the Middle East (approximately 80%) are still done in-house. Hence, there is a signifi cant potential to outsource logistics to LSPs and we actually observe an increasing trend of customers – especially agents of global brands/manufacturers – to do so. Finally, in their search for new growth markets, global leaders such as UPS, DHL and Kuehne & Nagel will increase their engagement in the region. Th ese players have longstanding expertise in vertical specialisation and clearly understand the competitive advantages that can be obtained.

MIDDLE EAST MARKETS THAT WILL EXPERIENCE THE MOST GROWTHTh ere is a broad portfolio of industry verticals that are highly attractive for LSPs, such as FMCG, pharmaceuticals, apparel, cosmetics and automotives, just to name a few. Yet, vertical specialisation only becomes viable if the respective verticals are large enough to develop the required economies of scale. As the logistics demand grows in the respective verticals, we expect that more industry verticals will become attractive for logistics players to provide specialised services. In the short to medium term, the following specialised services will be most attractive for LPSs: petrochemical logistics (due to the signifi cant growth of the industry in the next few years), project logistics (based on signifi cant investments in infrastructure, production facilities and real estate projects), distribution of FMCG and other durable consumer goods (provided that customers continues to outsource logistics services) and critical parts logistics (although this market is already well covered by the global and regional express service providers).

QUESTION: What are the benefi ts for logistics companies that specialise in niche markets?

VERTICAL REALITIES

This month’s column was written by Ulrich Koegler,

partner with Booz & Company

Page 37: Logistics Middle East - Feb 2010

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SOLUTIONPROVIDER

goods-to-person software

semi-automatic order picking

conveyor systems

automatic order picking

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34 FEBRUARY 2010 | www.arabiansupplychain.com

Nov

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Dec

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MONTHLY AIR CARGO REPORT: EUROPE REGION*

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

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

Amsterdam (Netherlands) 125,106 -9.7 1,060,341 -21.6

Brussels (Belgium) 38,749 -16.4 371,169 -30.1

Cologne (Germany) 51,150 -1.5 453,189 -7.0

Frankfurt (Germany) 181,687 -0.1 1,514,510 -15.2

Istanbul (Turkey) 38,760 25.5 302,288 -0.4

Leipzig (Germany) 50,679 17.0 408,690 16.6

Liege (Belgium) 47,715 8.1 373,937 -14.4

London Heathrow (UK) 126,646 -0.4 1,090,535 -12.8

Luxembourg (Luxembourg) 57,909 -17.4 504,412 -24.2

Paris (France) 162,500 -7.4 1,482,180 -13.5

Vienna (Austria) 20,494 6.8 156,559 -7.7

Warsaw (Poland) 4615 -3.1 40,591 -11.6

Zurich (Switzerland) 24,332 -6.0 229,721 -11.5

FACTS & FIGURESAir Cargo Regional & International Statistics

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

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

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

MONTHLY AIR CARGO REPORT: AFRICA REGION*

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

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

Accra (Ghana) 3386 -32.9 38,317 -12.5

Addis Ababa (Ethiopia) 4025 n/a 32,451 n/a

Algiers (Algeria) 1401 -12.4 17,911 -5.7

Antananarivo (Madagascar) 1047 -45.2 9521 -32.3

Cairo (Egypt) 23,012 7.5 2,33,279 1.2

Casablanca (Morocco) 4232 2.5 45,560 -5.9

Dar Es Salaam (Tanzania) 1583 -8.1 15,616 -20.0

Durban (S. Africa) 895 n/a 2273 55.6

Harare (Zimbabwe) 1910 -0.1 16,419 -12.0

Johannesburg (S. Africa) 25274 -2.4 203,066 -23.5

Libreville (Gabon) 1639 -15.4 16,783 -10.3

Nairobi (Kenya) 24,031 -6.1 220,601 -12.6

Tunis (Tunisia) 1967 26.0 15,449 -11.4

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

INDUSTRY STATISTICS

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

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

INDEX100 = 53.5 US cents per US gallon

20 November380

04 December380

18 December364

27 November373

08 January408

EMIRATES SKYCARGO FUEL PRICE INDEX

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

DUBAI INTERNATIONAL AIRPORT: CARGO STATISTICS

22 January377

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35www.arabiansupplychain.com | FEBRUARY 2010

MONTHLY AIR CARGO REPORT: MIDDLE EAST REGION*

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

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

Abu Dhabi (UAE) 36,448 24.8 312,390 4.6

Amman (Jordan) 6631 -1.7 67,306 -8.7

Bahrain (Bahrain) 27,896 -3.8 281,993 -8.1

Beirut (Lebanon) 6440 8.9 59,530 7.0

Dubai (UAE) 185,868 17.7 1,552,748 2.2

Jeddah (Saudi Arabia) 11,445 -21.0 173,630 -4.6

Kuwait (Kuwait) 17,668 21.5 166,012 10.2

Muscat (Oman) 6,418 37.7 51,864 5.9

Riyadh (Saudi Arabia) 20,008 23.1 168,687 -11.2

Sharjah (UAE) 37,544 18.4 340,930 14.2

MONTHLY AIR CARGO REPORT: NORTH & SOUTH AMERICA*

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

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

Anchorage (USA) 191,535 -3.1 1,533,180 -23.6

Buenos Aires (Argentina) 17,494 -10.2 124,234 -28.1

Chicago (USA) 118,827 0.4 921,477 -20.0

Los Angeles (USA) 144,314 4.2 1,212,472 -12.9

Memphis (USA) 343,160 5.0 3,036,742 -1.2

Mexico City (Mexico) 31,863 -0.2 261,022 -19.4

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

MONTHLY AIR CARGO REPORT: ASIA PACIFIC REGION*

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

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

Ahmedabad (India) 1995 -14.9 17,877 -15.8

Bangalore (India) 14,770 9.7 132,327 -6.7

Bangkok (Thailand) 100,617 1.6 837,259 -18.8

Chengdu (China) 34,447 18.7 303,652 -4.3

Colombo (Sri Lanka) 11,700 2.2 110,095 -16.6

Fukuoka (Japan) 21,756 -5.0 200,721 -11.6

Hong Kong (China) 327,154 1.4 2,703,717 -13.2

Jakarta (Indonesia) 40,931 7.8 347,192 -13.3

Kuala Lumpur (Malaysia) 59,076 11.4 491,429 -14.5

Manila (Philippines) 40,033 30.9 285,133 -5.5

Mumbai (India) 50,890 10.3 464,806 -2.2

Osaka (Japan) 60,687 -17.3 486,868 -33.9

Seoul (Korea) 12,754 -13.0 121,194 15.0

Shanghai (China) 261,470 11.0 2,007,573 -9.4

Singapore (Singapore) 156,738 2.0 1,353,703 -15.6

Taipei (Taiwan) 140,974 15.6 1,068,740 -18.0

Tokyo (Japan) 186,583 3.5 1,489,916 -17.3

INDUSTRY STATISTICS

For up-to-datefi gures, visit:

www.yale-me.com

Yale’s warehouse equipmenthas everything in the right place ensuringeverything else runs beautifully

The productivity of any application is affected by a multitude of factors: number ofpallets moved, truck reliability, operator efficiency and ease of servicing to name but afew. It is only through monitoring, controlling and measuring performance thatproductivity can be truly increased and cost of operation optimised. Whatever theapplication, Yale has a warehouse model to meet your needs.

Page 40: Logistics Middle East - Feb 2010

36 FEBRUARY 2010 | www.arabiansupplychain.com

0

3 million

6 million

9 million

12 million

15 million

Jan

09

Feb

09

Mar

09

Apr 0

9

May

09

Jun

09

July

09

Aug

09

Sep

09

Oct

09

Nov

09

FACTS & FIGURESSea Freight Regional & International Statistics

INDUSTRY STATISTICS

12 F

eb 0

9

12 M

ar 0

9

12 A

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200

275

350

425

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FUJAIRAH BUNKER FUEL PRICE INDEX

BUNKER FUEL PRICE INDEX*

PORT / COUNTRY IFO380 IFO180 MGO MDO

Buenos Aires (Argentina) n/a n/a n/a n/a

Busan (South Korea) 495 505 672 662

Cape Town (South Africa) n/a 555 685 n/a

Fujairah (UAE) 480 492.5 661 n/a

Houston (USA) 452.5 463.5 n/a 650

Istanbul (Turkey) 487 502 675 n/a

New Orleans (USA) 461 471 n/a 655

Piraeus (Greece) 480 495 645 n/a

Port Klang (Malaysia) 481 487 648 n/a

Rio de Janeiro (Brazil) 484 502.5 701 n/a

Rotterdam (Netherlands) 455 475 625.5 597

Singapore (Singapore) 479.5 489 632 619

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

TOTAL THROUGHOUT FOR SAUDI PORTS IN TONNES

CARGO TYPENOVEMBER 2009 YEAR-TO-DATE

Discharged Loaded Discharged Loaded

Bulk cargo (solid) 1,781,071 471,952 18,284,215 6,299,722

Bulk cargo (liquid)* 523,431 4,776,501 4,907,042 5,323,058

General cargo 431,616 88,029 4,769,746 770,290

Containers (in tonnes) 2,029,438 1,556,837 23,453,792 15,778,905

Ro-Ro and vehicles 129,352 18,994 1,381,869 181,165

Livestock 51,369 n/a 173,690 n/a

TOTAL 4,946,277 6,912,313 52,970,354 76,353,140

TOTAL PORT THROUGHPUT 11,858,590 129,323,494

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

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

12 Mar244

12 Jun407.5

12 Aug447.5

12 Jan480

12 Sept435

12 Nov464.5

CONTAINERS (TEU) 2009 2008

November Year-to-Date MONTH Year-to-Date

Discharged 177,507 2,036,466 201,992 2,176,062

Loaded 198,491 2,000,470 203,750 2,081,856

TOTAL 375,998 4,036,936 405,742 4,257,918

Our sea freight data includes information on bunker fuel

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

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

specifi c cargo statistics are also provided from the Saudi

Ports Authority, covering the major ports in the Kingdom.

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38 FEBRUARY 2010 | www.arabiansupplychain.com

EVENTS TRADE EVENTS

222627

BRUARY 2010Y | www.arabiana

2

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

21st – 22nd February 2010ACHIEVING LOGISTICS EXCELLENCEKavaaq has invited decision makers from the Middle East logistics industry to attend its ‘Achieving Logistics and Supply Chain Excellence’ seminar in Dubai, which has been organised as a platform to discuss the global recession and its continued impact on regional operations. Guest speakers include Fredrik Lindblad from Aramex, Alex Borg from the Chartered Institute of Logistics and Transport (CILT), Justyna Janik from Damco and Arun Kumar from Global Shipping & Logistics (GSL).VENUE: Metropolitan Palace Hotel, DubaiEMAIL: [email protected] WEBSITE: www.kavaq.com

14th – 15th March 2010GLOBAL LOGISTICS FORUMTh e fi rst Global Logistics Forum is part of a strategic partnership between Abu Dhabi University and the TU Berlin Chair of Logistics, representing the fi rst step in developing a long-term, high quality programme of courses, conferences and knowledge transfer in the fi eld of supply chain logistics. Th e forum aims to provide a unique forum for local and international policy makers, supply chain managers and logistics executives to understand the latest issues in the Middle East.VENUE: Fairmont Bab Al Bahr, Abu DhabiEMAIL: [email protected]: www.globallogisticsforum.com

12th May 2010GLOBAL LOGISTICS & SCM SUMMIT Th e Supply Chain and Logistics Group (SCLG) has announced plans to host its third Global Logistics and Supply Chain Management Summit in May 2010. Th e Dubai-based trade association is hoping to break its record from last year’s summit, which attracted more than 200 delegates from various Middle Eastern countries, in addition to Singapore, India and the UK.VENUE: Dubai, United Arab EmiratesEMAIL: [email protected] WEBSITE: www.sclgme.org

8th – 10th March 2010WORLD OF PERISHABLES 2010Th e growing popularity of fresh produce in the Middle East, fuelled by consistent growth in the regional population, has created a variety of logistical challenges. Covering the entire supply chain - from farming procedures to transportation and delivery to retail operations - the World of Perishables (WOP) exhibition will return to Dubai Airport Expo between 8th-10th March 2010 for trade professionals that specialise in activities such as importing, exporting, warehousing and distribution.VENUE: Airport Expo, DubaiEMAIL: [email protected]: www.wop-dubai.com

18th – 19th April 2010SHIPTEK 2010 Following the success of ShipTek 2009 in Singapore, the maritime sector will be setting its sails for the fi ve-star Crowne Plaza Hotel in Dubai for the event’s latest edition. Taking place on 18th and 19th April 2010, ShipTek will off er a platform for delegates from the shipping, marine and off shore industry to exchange information, explore trade opportunities, showcase the latest technical innovations and take stock of the most prominent issues at the heart of future strategies.VENUE: Crowne Plaza Hotel, DubaiEMAIL: [email protected]: www.shiptek2010.com

10th – 12th October 2010TRANSOMANTransOman, the Sultanate’s leading trade event for transportation, shipping and

logistics companies, will provide a three-day forum for local industry professionals to discuss the latest issues that are eff ecting the domestic market’s development. In addition, delegates will be provided with the opportunity to network with their colleagues, exchange valuable information and predict the newest opportunities that are expected to arise in the local sector.VENUE: Oman International Exhibition CentreEMAIL: [email protected]: www.oite.com/transoman

9th – 11th March 2010COMMERCIAL VEHICLES MIDDLE EAST With increasing volumes of cargo being transported by road in the Middle East, next month’s Commercial Vehicles Middle East exhibition has been marketed as the only specialist show in the region to cover all varieties of commercial vehicles, parts and services. Th e three-day event, which is aimed at transport, fl eet and logistics managers, will be complimented by trade seminars, technical workshops and a large display area, where visitors can view the latest models available in the local market.VENUE: Dubai Convention and Exhibition CentreEMAIL: [email protected]: www.commvehicles.com

25th – 28th April 2010FREIGHT LOGISTICS ARABIAWith signifi cant growth being forecast for the warehousing and transportation sector in Saudi Arabia, the Kingdom has announced plans to host its second annual Freight Logistics Arabia conference and exhibition. Th e four-day event is taking place at the Jeddah Centre for Forums and Events on 25th-28th April 2010, with organisers already reporting a positive response from a variety of exhibitors in the global airfreight, maritime, warehousing, freight forwarding and technology sectors.VENUE: Jeddah Centre for Forums and EventsEMAIL: [email protected]: www.acexpos.com/exhibitions

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

ost and Supply Chain May 2010. Th e y

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200+

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40 February 2010 | www.arabiansupplychain.com

FACE TO FACE

In which year did JBC Express Freight commence its Middle East operations?We started our operations on 12th July 1993 with a branch offi ce in Muscat. Th e company was formed to provide a cost eff ective and reliable service to customers in the Middle East, starting with a consolidation and FTL (full truck load) cargo service to Abu Dhabi and Oman, together with cargo clearance.

With such massive developments in the industry since this time, how has your company expanded its service portfolio?JBC Express Freight is now providing its consolidation and FTL services to clients in the United Arab Emirates, Oman, Qatar and other GCC countries. In addition, we have diversifi ed into a number of additional solutions, including a daily cargo collection and distribution service across the UAE, express package deliveries to major UAE and Oman destinations, and scheduled deliveries to remote areas in the region.

Has your warehouse infrastructure also been developed over the past 17 years?Yes, we opened our Dubai head offi ce in 1998, followed by a Jebel Ali Free Zone branch in 1999 and Abu Dhabi offi ce in 2005. Most recently, we have also ventured into the 3PL business with the launch of logistics centre in Jebel Ali Free Zone South, which was inaugurated in December 2009.

What has been your approach to ensure the success of these developments?From the inception, each stage of our development has been gradual, carefully evaluated and fi rm footed. Th is remains our main objective even today and one of the reasons why JBC Express Freight has been able to develop a customer base of over 1500 companies, a workforce of approximately 200 trained professionals and a fl eet of 100 commercial vehicles in the region.

What are the specifi cations of your new warehouse in Jebel Ali Free Zone South?Th e facility measures 100,000 square feet and includes a built-up area of 30,000 square feet, comprising of covered warehouse, open yard and offi ce facilities. It has been valued at US$2.5 million and features the latest in material handling solutions and supply chain technology. Basically, with the opening of this warehouse, we wanted to provide a storage and distribution service to international customers by utilising our existing freight forwarding system more eff ectively. Once we combine our established transportation solutions with this facility, we can provide benefi ts such as reduced lead times and reduced inventory costs.

What type of reaction have you received from the market since the inauguration?Our clients have been very positive about this new facility and supportive about our growth. We expect to reach full storage capacity within the next six months.

Did you have some concerns about expanding in a global recession?To be honest, JBC Express Freight has not been drastically or directly aff ected from the global recession. However, similar to others in the logistics industry, some ripples have been faced from the situation. Since our sales have been maintained over the past year, the major concentration at this moment is collecting the receivables in time to provide fuel to our running machine.

What are your company’s target markets?With exception to dangerous and hazardous cargo classifi ed as HAZMAT, we transport all types of cargo. Th is includes fast moving consumer goods (FMCG), auto parts and machinery, heavy equipments, oilfi eld and gas pipes, steel structures and specialist cargo for the ship building industry.

Are you planning to continue this growth momentum with further developments?Yes, we are planning to establish a presence throughout the GCC region and consolidate our operations in Oman, Abu Dhabi, Doha and Saudi Arabia, thereby establishing a solid distribution network. In addition, we are looking to increase our foothold in the market for multi-modal shipments, which will enable JBC Express Freight to bolsterits appeal to a wider base of customers.

It’s been a rough year for the Middle East logistics industry. In general, what are your predictions for the market in 2010?I actually believe that 2010 will be the same as 2009. In other words, it will be a diffi cult time for maintaining liquidity. Th ere will be a slump in the market during the initial quarters, although we can expect the latter quarters to be relatively good, eff ectively covering up the slump experienced. For most companies, this time should be used for concentrating on business operations, fi ne-tuning the investments done and preparing for all possibilities in the future.

STEADY PROGRESSThe opening of its latest warehouse facility in Jebel Ali Free Zone South has marked the latest chapter in the success story of JBC Express Freight, explains managing director P.K. Ayyappan.

FACE TO FACE INTERVIEW

Page 45: Logistics Middle East - Feb 2010

HANDLING TECHNOLOGY AND DRIVES FROM DEMAG

Demag Cranes & Components ( Middle East ) FZEP.O. Box. 16852, Jebel Ali, Dubai, United Arab EmiratesPhone : +971-4-8120800, Fax: 971-4-8836861, Toll free : 800 [email protected]

The Handling Technology range comprises of the following products:

� KBK Suspension Monorails, Single & Double

Girder Cranes

� KBK Stacker Cranes

� KBK Portal Cranes

� KBK Alluline- Aluminium Profi le Suspension

Monorails & Cranes

� Pillar Mounted Slewing Jib Cranes

� Electric Chain Hoists

The Drives range comprises the following products:

� Wheel Bocks, Travel Wheel Systems and Wheel Sets

� Electric Motors

� Brake Motors

� Gearboxes

� Microspeed Drives

� Frequency Invertors for variable speed control of

standard three phase motors

� Power Supply Lines

� Radio Remote Control

Key Features & Advantages of Demag KBK Crane Construction Kit:� Successful track record � Keep material off the fl oor � Multi application usage � Rugged design and fl exibility � Simple installation, reliable and effi cient � Outstanding versatility � Smooth & reliable handling � Ease of operation � Functional reliability � Comprehensive service

SOLUTIONS FOR MATERIAL HANDLING FOR LIGHTER LOADS & DRIVES APPLICATION

Page 46: Logistics Middle East - Feb 2010

LANDOLL CORPORATIONMATERIAL HANDLING PRODUCT DIVISION1900 North Street · Marysville, KS 66508

785-562-53681 · Fax [email protected]

800-428-5655 · WWW.LANDOLL.COM/MHP