logistics middle east

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSJANUARY 2010 ISSUE 64

TOLL GLOBAL FORWARDING І DNATA І ARAMEX І SNS І GLOBELINK WEST STAR SHIPPING

An ITP Business PublicationLicensed by International Media Production Zone

ON THE RIGHT COURSE Why Strathclyde University is bringing its supply chain programme to Abu Dhabi

DEVELOPMENT ZONEAn exclusive look into Ras Al Khaimah’s US$2 billion free trade zone expansion

REVEALING THE MOST INFLUENTIAL CEOs OFLOGISTICS COMPANIES IN THE MIDDLE EAST REGION

REVEALING THE MOST INFLUENTIAL CEOs OFLOGISTICS COMPANIES IN THE MIDDLE EAST REGION

PLAYERSPOWER

Fadi Ghandour, founder and chief executive offi cer of Aramex

1www.arabiansupplychain.com | JANUARY 2010

CONTENTS

CONTENTS

02 Editor’s LetterInviting readers to submit their opinions on the Logistics Middle East Power 25 List.

05 News Update• Exhibition chaos for GCC logistics as SITL

Dubai and CeMAT Middle East postponed• FlyDubai signs Danzas as logistics partner• CEVA awarded Embraer Middle East deal• Majaal receives Bahrain warehouse award• Dnata acquires airport operators in the UK• CILT to expand courses in the Middle East• Toll Group reveals Dubai 3PL acquisition• Abu Dhabi invests in Turkish logistics fi rm• Santis HSE awarded ADAC forklift contract• DHL hosts customs tour at Bahrain offi ce• SNS hails the success of Lebanon seminar• Momentum Logistics joins global alliance• Maersk Oil opens Qatar logistics complex

Issue 64 January 2010

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

14 Cover Story: Power 25A list of the region’s most infl uential executives of logistics companies, with entries from the likes of Fadi Ghandour (Aramex), Hamdi Osman (FedEx), Elias Monem (Agility), Bill Hill (GAC Logistics) and Richard Bell (RHS Logistics).

22 Development ZoneApproaching its 10th anniversary this year, Ras Al Khaimah Free Trade Zone (RAKFTZ) is planning to develop its status as a Middle East logistics hub with a major US$2 billion expansion over the next fi ve years, explains chief executive offi cer Oussama El Omari.

26 Ask The ExpertSumesh Nair, general manager of Globelink West Star Shipping Middle East, describes the numerous benefi ts of sea-air transportation.

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

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

32 Face To Face InterviewProfessor Umit Bititci from the University of Strathclyde explains why the educational institute is bringing its masters programme in logistics and supply chain management to a regional campus in Abu Dhabi.

14

05 22 32

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EDITOR’S LETTER

o celebrate the start of 2010, we’ve published the inaugural Logistics Middle East Power 25 List, which ranks the most infl uential

CEOs of logistics companies in the region. Taking pole position this year is Fadi Ghandour, the chief executive offi cer and founder of Aramex, who has transformed his company into one of the industry’s biggest success stories, with increasing profi ts being reported even during the global recession. Ghandour, who graces our cover this month, celebrated this achievement by providing Logistics Middle East with an exclusive insightinto the various facets of his leadership style, including a guarantee to employees that zero redundancies would occur during the current economic crisis.

A variety of fi gureheads have followed Ghandour in the power list, from high-profi le individuals such as Elias Monem from Agility, to inspirational fi gures such as Hamdi Osman from FedEx, to the heads of relative newcomers to the industry, such as Brain McHale from Wared Logistics.

TCongratulations to each of the 25

executives that were featured in the power list. Unfortunately, with such a limited number to work with, you may notice a few surprising omissions this year. In fact, our editorial team had to make some truly diffi cult decisions and we look forward to re-evaluating the rankings in 2011, based on activities in the forthcoming year.

Of course, we know that controversy is often associated with such lists and I’m sure our readers will have their own points-of-view on each position. Th is is natural and we would love to hear your opinions. A dedicated channel has been opened on our website, www.ArabianSupplyChain.com, where you are invited to agree or disagree with the list. Who do you think is the Middle East’s most infl uential CEO of a logistics company and why? Th e best comments will be published in the next issue of Logistics Middle East, so please get in touch.

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

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NEWS UPDATE

Exhibitionchaos for GCC logistics sector

he recent postponement of SITL Dubai and CeMAT Middle East has placed the viability of large-scale exhibitions for the Middle East logistics industry into jeopardy, according to regional experts.

Both events were scheduled to take place in 2010. However, announcements from Reed Exhibitions, organiser of SITL Dubai, and Deutsche Messe, organiser of CeMAT Middle East, have revealed that the exhibitions are now being planned for 2011.

Th e announcements are the latest in a line of cancellations for logistics trade shows in the Middle East, with the Council of Supply Chain Management Professionals (CSCMP) being amongst the fi rst to terminate its plans for a Dubai conference, stating that companies had “discontinued their support of employee travel and participation in conferences as a result of the global downturn”. More recently, IIR Middle East cancelled its International Freight Week exhibition in Abu Dhabi last year, following a limited response from the market.

“We have decided to organise the next edition of SITL Dubai in co-location with our annual Airport Show Exhibition & Conference in 2011, which will provide participants with enhanced business, networking and content opportunities,” explained Mohamad Bader-Eddin, show director of Reed Exhibitions Middle East, which hosted the debut SITL Dubai exhibition last year.

Th e event attracted around 80 exhibitors, including Agility, DP World, Jebel Ali Free Zone and Al-Futtaim Logistics, although the fi nal tally was lower than earlier predictions of 250 exhibitors.

“SITL is viewed as the ultimate event for sea and land freight sectors, while partly including the airports and airliner sectors. Having the Airport Show attracting all the airlines and airports to the exhibitors, the combination of both shows will be advantageous as SITL will become the ideal event covering the entire transport industry,” added Bader-Eddin.

CeMAT was due to make its debut in the Middle East this year, although prospective attendees will now have to wait until 2011, according to a spokesperson from organiser Deutsche Messe.

T

Event organisers announce the postponement of SITL Dubai and CeMAT Middle East until 2011

NEWS UPDATE

• November 2008: The Council of Supply Chain Management Professionals (CSCMP) cancelled its Dubai conference, stating“the current climate requires companies to discontinue their support of employee travel and participation in conferences”.

• August 2009: IIR Middle East axed its International Freight Week exhibition in Abu Dhabi for 2009, following a limited response from the market. The decision was “due to the downturn and unprecedented pressures on the transport and logistics industry” according to a statement from IIR Middle East.

• December 2009: Reed Exhibitions confi rmed SITL Dubai is returning in 2011, contrary to previous reports that the logistics exhibition was being planned for 2010. “Reed Exhibitions has decided to organise the next edition of SITL Dubai in co-location with our Airport Show Exhibition & Conference,” explained Mohamad Bader-Eddin from Reed Exhibitions Middle East.

• December 2009: The Middle East debut of global logistics exhibition CeMAT was delayed until 2011, with organiser Deutsche Messe stating the decision was down to “topic overlaps at the exhibition venue”.

LOGISTICS EVENT CANCELLATIONS IN THE MIDDLE EAST

“In the eyes of Deutsche Messe, the United Arab Emirates, and particularly Dubai, continue to represent a key exhibition location in the medium and long term. After careful analysis, we have decided to postpone the debut of CeMAT Middle East until 2011,” revealed Dr Andreas Gruchow, member of Deutsche Messe’s managing board.

“Th ere are topic overlaps at the exhibition venue, which now make it impossible to stage our exhibitions within the original framework. We require the premium exhibition facility for our events in order to fulfi l the needs of our customers and our preferred venue to hold this trade show would be Th e Dubai World Trade Centre.”

6 JANUARY 2010 | www.arabiansupplychain.com

NEWS UPDATE

Southern Europe, Middle East and Africa.

“Thanks to our understanding of the aerospace industry, we can create fl exible services that are designed to satisfy the unique needs of this sector, including

Majaal, the recently-launched warehousing venture from First Bahrain, has been crowned the ‘best industrial development’ at this year’s GRE Excellence in Real Estate Awards. The company was selected for its contribution to the growth of Bahrain’s real estate and warehousing sectors, whilst stimulating the Kingdom’s economy. “Majaal is about fi lling a demand gap for secure and cost effective storage solutions in Bahrain” said Amin Al Arrayed, general manager of First Bahrain. “We’re honoured to be recognised by our peers with this award.”

Momentum Logistics has been confi rmed as the latest member of Atlas International Network, a group of independent forwarding companies, non-vessel operating common carriers (NVOCCs) and related service providers. “We have always looked to develop our global network and provide the highest standard of service to customers,” stated Matthew Derrick, general manager of Momentum Logistics. “As a member of the Atlas network, we have access to a global network that operates in accordance to the highest international standards.”

DHL has expanded its ocean freight operations with the launch of a direct LCL (Less than Container Load) service that connects Dubai to Nhava Sheva in India. The weekly service will be operated by DHL Lemuir Logistics, a joint venture between DHL Global Forwarding and Mumbai-based Lemuir Group. “The launch of this vital link from Dubai to Nhava Sheva continues to enhance our leading position in the industry as an LCL service provider,” said Christoph Remund, CEO of DHL Lemuir Logistics.

Danzas has announced its selection as the logistics partner of

FlyDubai, providing the low-cost airline with transportation services for its ‘Above and Below Wing’ consumables.

“Partnering with FlyDubai is going to be extremely rewarding for us both,” commented Enver Moretti, CEO and president of DHL Global Forwarding in the Middle East and Africa.

FlyDubai’s CEO Ghaith Al Ghaith signs the logistics contract with Enver Moretti, CEO of DHL Global Forwarding in the Middle East

CEVA Logistics hasbeen awarded a three-year contract to provide

various supply chain services to aircraft manufacturer Embraer in the Middle East.

Under the deal, CEVA will supply spare parts on behalf of Embraer to the expanding executive jet fl eet market in the Middle East, as well as provide support to operators in North Africa and India.

In addition, the logistics company will be responsible for customs clearance procedures, stock management, and express pick up services for aircraft on the ground.

“Our excellent solutions will enable Embraer to satisfy its customers’ needs, providing an effi cient and punctual delivery service,” stated Gianfranco Sgro, president of CEVA Logistics in

FlyDubai forms Danzas partnership

CEVA contracted by Embraer in Middle East

3PL

Major transportation contract awarded by UAE low-cost airline for its ‘Above and Below Wing’ consumables

“This contract is a ‘strengthen and support’ exercise, where we can take care of the non-core aspects of the FlyDubai business and help the airline maintain its growth,” he continued.

Danzas, which has warehouse facilities in Dubai Cargo Village, Jebel Ali Free Zone, Dubai Investment Park, Dubai Airport Free Zone and Sharjah, will provide transportation by ocean, road and air under the contract,

in addition to warehousing and distribution services.

“Danzas belongs to the world’s largest logistics company and has extensive experience of working in the Middle East,” explained Ghaith Al Ghaith, chief executive offi cer of FlyDubai. “We believe this makes them the ideal choice to handle our logistics requirements and deliver what we need, when we need it,” he added.

3PL

NEWS IN BRIEF

a wide portfolio of smart and high-value solutions.”

CEVA will dedicate 700m2 of storage space for Embraer in its Dubai distribution centre, located in Jebel Ali Free Zone, according to Sgro.

Gianfranco Sgro with CEVA colleagues Wade Thompson and Shamsudeen Ahmed


Dnata acquires UK airport operatorsRecent purchases will mark Dubai-based company’s entry into London Heathrow and Manchester airports

Dnata has announced plans to acquire two of the UK’s leading

ground handling operations.The Dubai-based company will

purchase Plane Handling Ltd, which provides cargo and ramp handling services at London Heathrow and cargo handling at Manchester Airport.

OPERATIONS

In addition, Dnata will take over Aviance Ltd’s passenger and ramp handling operations at Terminal 3 and 4 at London Heathrow Airport.

The acquisitions, which are valued at US$25 million, will be completed on 30th January 2010 and mark Dnata’s entry into the UK airport handling sector.

“These businesses offer a perfect fi t with our operations in Dubai, Singapore, Switzerland, Australia and other parts of the world,” said Gary Chapman, president of Dnata. “We are committed to further developing both companies and ensuring that their customers enjoy the highest levels of service.”

Dnata’s acquisition of Plane Handling Ltd and Aviance Ltd has been valued at US$25 million and will be completed later this month

The Chartered Institute of Logistics and Transport (CILT) has revealed that the Middle East launch of its International Certifi cate in Logistics and Transport will take place next month. “We have been asked by various companies and individuals in the region to support them with this qualifi cation, which is designed for newcomers and fi rst line supervisors working in the fi eld of logistics, transport and supply chain management,” explained Alex Borg, regional director of CILT. “The classes will be scheduled twice a week, in the evenings, at Emirates Aviation College in Dubai.”

NEWS IN BRIEF

NEWS UDPATE


NEWS UPDATE

Samir Assaad, head of private equity at Invest AD. “We believe EKOL is unique in its sector, differentiated by its focus on innovative and customised solutions. It’s expanding quickly as trade grows in Europe and the Middle East.”

Invest AD’s private equity fund, which aims to raise $400 million, is investing in a number of fast growing companies across the Middle East and North Africa, with a strong focus on Turkey, Saudi Arabia, Egypt and the UAE.

Abu Dhabi Airports Company (ADAC) has awarded Santis HSEGroup with a long-term contract to provide its warehouse employees at Abu Dhabi International Airport with forklift training courses. “The hectic nature of airport warehousesis not always favourable to safedriving habits,” explained Malcolm Coates, CEO of Santis HSE Group. “The harnessing of good driving disciplines is therefore essential to the safety of logistics personnel and equipment. Our trainers will focus on safe working practices and careful inspection of trucks.”

DHL Express hosted a recent tourof its Bahrain distribution centre for senior customs offi cials fromthe Middle East, where employeesprovided a live demonstration of the courier fi rm’s security and satellite systems. “As the fi rst logistics company in the Middle East to receive full scores on the global TAPA ‘A’ certifi cation, we were delighted to share industry best practices and enhance cross-border exchange with our customs colleagues from the region,” said Garry Kemp, managing director of DHL Express in the Middle East.

Maersk Oil Qatar has partnered with Venture Gulf Group to open a new logistics complex in Qatar. The facility, which is located in Salwa Industrial Area, will serve as a central base for Maersk Oil’s onshore operations for the development of Al Shaheen, Qatar’s largest offshore oilfi eld. “This marks another successful and important milestone for the company in our ambitions to achieve operational excellence with our operations here in Qatar,” stated Morten Westin, logistics manager of Maersk Oil Qatar.

Australia’s Toll GlobalForwarding (TGF) hasexpanded its footprint

in the Middle East with the acquisition of Dubai-based 3PL company Logistics Distribution Systems (LDS).

According to a statement, the transaction will be funded from existing cash reserves, although specifi c details on the purchase price were not revealed.

“The Middle East is considered a key strategic market for Toll Global Forwarding, especially with the United Arab Emirates,” explained Paul Little, managing director of Toll Group.

“This acquisition of LDS will enhance our existing operations in the region and supports our growth strategy,” he added.

Logistics Distribution Systems (LDS) operates a warehouse in Jebel Ali Free Zone

Turkey’s Ekol Lojistik (EKOL) has sold a minority stake in its

business to Invest AD for a reported US$17.7 million.

The deal was struck with the fi nancial services company, which is owned by the Abu Dhabi government, to fund a forthcoming expansion strategy for EKOL.

“Our investment is perfectly in line with Invest AD’s strategy of partnering with local market leaders and assisting them in their regional expansion,” stated

Toll Group acquires Dubai 3PL fi rm

EKOL has a network of 16 warehouses in Turkey and a cross-dock facility in Germany, which are supported by a fl eet of 1100 vehicles

Abu Dhabi invests in Turkish logistics fi rm

3PL

Asian company expands its Middle East operations with purchase of Logistics Distribution Systems (LDS)

3PL

NEWS IN BRIEF

The fund is one of several being created by Invest AD to provide global investors with greater access to the Middle East and North Africa.

“Turkey has all the positive traits for investment that are found in our region, such as a youthful and growing population, a deep pool of managerial expertise, an economy that is opening up and fast developing capital markets,” explained Nazem Fawwaz Al Kudsi, chief executive offi cer of Invest AD.

LDS has a central warehouse facility in Jebel Ali Free Zone and currently generates annual sales of approximately US$45 million, with 60% of the revenue coming from air and sea freight forwarding and the balance

from customs clearance and other value-added services.

“Into the future, LDS will also provide Toll Global Forwarding with a platform for strong growth in the broader Middle East region,” stated Little.

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Event attracts over 100 delegates from companies such as Agility, Infor, Expeditors and SPAN Group

upply Network Solutions (SNS) hosted its inaugural logistics seminar in Lebanon last month, with over 100 attendees from companies such as Agility, Infor, Expeditors, Transmed and the Chartered Institute of Logistics and Transport (CILT).

Th e trade event, which took place at the Bristol Hotel in Beirut, focused on preparing the supply chain for a market recovery, with speakers including Walid Daniel (managing director of SPAN Group), Marouane Rihoum (logistics manager of Chalhoub Group) and Sjoerd Koopman (customer service and distribution manager of Nestlé).

“Th e conference was organised for logistics professionals in the Middle East to share strategies, tactics and ideas on equipping their supply chains for a forthcoming upturn in economic conditions, with

Sguests coming from Lebanon, Saudi Arabia, Jordan and the United Arab Emirates,” explained Mario Ghosn, general manager of SNS.

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

Following the positive response, SNS has already started to plan a follow-up event, which is scheduled to take place in the second half of 2010. “Th e entire team has been encouraged by the feedback from our fi rst seminar,” ended Ghosn. “Hopefully, we can build on that momentum for next time with an even greater number of speakers and participants.”

SNS hails Lebanonlogistics seminar a success

Geoff Wheatley from SSI Schaefer Geoff Wheatley from SSI Schaefer Geoff

NEWS UPDATE

Alex Borg, regional director, CILT Guests network during a break at the Bristol Hotel

Walid Daniel, managing director of SPAN Group

NEWS UPDATE

fer

Mario Ghosn, general manager of SNS

attendees from countries such as Lebanon, Saudi Arabia and the United Arab Emirates

100+

A live demonstration of Infor’s technology products

Delegates at the conference

The team from SNS, Span Group and Infor



EDITOR’S CHOICES

SPOT POLL

What are your views on the recent spate of warehouse fi res in the Middle East?

85%Action is needed to improve safety standards and avoid these warehouse fi res

The online home of:Still hungry for more news?

for regular updates on the Middle East logistics industry

ONLINE INTERVIEW

Boeing’s BillionsJim McNerney, chief executive offi cer of Boeing, explains how the plane manufacturer has weathered the economic storm with a US$260 billion order book.

PHOTO SPECIAL

JBC Warehouse LaunchJBC Express & Freight, a Dubai-based logistics company, hosted a special ceremony to celebrate the launch of its new warehouse in Jebel Ali Free Zone South.

MOST TALKED ABOUT LOGISTICS COMPANIES ON ARABIANSUPPLYCHAIN.COM

Aramex

CILT (Chartered Institute of Logistics and Transport)

DHL Express

Gulf Agency Company (GAC)

CEVA Logistics

MOST POPULAR HEADLINES

1 Dubai starts recruiting forAl Maktoum mega airport

2 Former Dubai Logistics CityCEO lands recruitment role

3 Fadi Ghandour estimates Aramex acquisitions in 2010

4 Midex Airlines announces US$500 million investment

5 Sharjah furniture warehouse destroyed by large-scale fi re

WEBSITE STATISTICS

ONLINE HIGHLIGHTS

Such incidentsare equally common in other parts ofthe world

Safety standards are high for Middle East warehouses and these fi res are one-offs5% 10%

Although the global recession has created a market downturn for logistics service providers (LSPs), the situation has also produced a range of unique opportunities for the industry, according to a trade report from Frost & Sullivan. Th e research company’s ‘Global Logistics and Transport Industry Outlook 2009’ was published last month, with suggestions that attempts to stimulate trade with multilateral agreements and policies around the world have allowed LSPs to re-align their business processes for the future.

“Th e current crisis has underscored the need to ease trade policies, reduce tariff s and expand multilateral trade agreements,” explained Prasanna Sriraman, research association at Frost & Sullivan. “In addition, we are seeing better sharing of global trade information, as well as the acceleration of pending business proposals to facilitate trade. Th is is opening up a wealth of opportunities for the global logistics industry.”

While the situation bodes well for the supply chain sector, LSPs are still facing diffi culties because their businesses are intertwined with particular industry sectors, stated the report. “As most sectors including automotive, retail and consumer electronics are aff ected by the recession, so are the LSPs that serve them,” added Sriraman. “As a result, LSPs must start to collaborate among themselves and with their suppliers to create the economies of scale that are needed to survive the ongoing crisis.”

3PL sector benefi ts from regulation shifts


LOGISTICS MIDDLE EAST POWER LIST 2010

elcome to the fi rst edition of Logistics Middle East’s Power 25 List – a detailed ranking of the region’s most infl uential executives from the

warehousing and transportation sector. Whether its power, infl uence or success

that has driven their ambitions, our seven-page special report includes 25 of the Middle East’s most infl uential fi gures. Together, these decision makers are representative of an elite community that continues to play an important role in the success and growth of the regional logistics sector.

So who is featured in this year’s list? Taking the top spot is Fadi Ghandour, the outspoken founder of Aramex, who provides an exclusive interview to Logistics Middle

East over the next two pages. As you may expect, hot on his heels are a number of well-known CEOs, each gunning to make their companies the top in the Middle East.

You will also fi nd some unexpected names – executives from relative newcomers to the industry, who have proved their mettle in a short period of time and have the potential to climb even higher in future years. And those that appear to prefer a back seat, but continue to hold signifi cant infl uence in shaping the industry’s future.

We should stress that the list is subjective and rankings have been based on events in the past year. We accept that readers will have their own views on almost every position, so our apologies in advance to anyone off ended by their appearance (or non-appearance).

W

A COMPREHENSIVE LIST OF THE 25 MOST POWERFUL CEOs OF LOGISTICS COMPANIES IN THE MIDDLE EAST.



FADI GHANDOUR CEO AND FOUNDER OF ARAMEX

Plenty of companies have seen revenue fall in 2009, but there can’t be many that have also seen net profi t actually increase year on year. Th at, however, is exactly what has happened to Aramex,

the regional logistics and supply chain giant, in its last three quarters. Over that period, the company has posted net profi t of AED134.8 million, representing year-on-year growth of 24%. Th e secret of the company’s success this year, according to its founder and chief executive offi cer Fadi Ghandour, is simple. It didn’t fi re people.

“At a time when a large percentage of our competitors were laying off people, our morale was very high – we were really very aggressive out in the market,” he states.

Astonishingly, Aramex claims that it has not laid off a single person as a result of the economic downturn. In fact, the number of employees has actually gone up and the only people to leave the company are those who did not perform.

“We actually guaranteed everybody’s jobs,” says Ghandour, stressing the word ‘guaranteed’ before adding quickly, “Guaranteed. Write that word! We went to our people and said: ‘No-one in this company is going to lose his job because of the current slowdown. You will lose your job



because you’re not performing, not because of the slowdown’.”

Th e result, he says, is a motivated, dedicated workforce that has gone out and aggressively renegotiated rates with real estate companies, airlines and ocean shipping lines. Th is has driven down costs and underpinned the increase in net profi ts, even as revenues fell in line with the rest of the industry. “Airlines and sea line operators were providing us with prices that were just unbelievable,” Ghandour says, grinning. “When there was overcapacity, we took advantage of it.”

It must have also helped, and justifi ed the decision not to make layoff s, that key businesses and geographies held up well this year. “Our business in the Gulf did not go down… Saudi Arabia’s economy did not really shrink. Dubai got hit in the real estate industry, but I’m not dependent on real estate. Our express business, where our highest margins are, had a couple of percentage points growth over 2008,” the CEO explains.

Ghandour is speaking at the groundbreaking ceremony for a new warehouse facility in Dubai Logistics City. He has just taken Sheikh Ahmed bin Saeed Al Maktoum, chairman of Emirates Group, on a tour of the site and briefed him on the company’s development plans.

Aramex is investing an estimated AED120 million to build the 43,000m2 warehouse on a 140,000m2 plot of land. Th e site is due for completion in the fi rst quarter of 2011. And while the plans are ambitious, for Ghandour they are a bold statement about Aramex’s future intentions and refl ect his belief in Dubai as a trans-shipment hub.

“85% of our business in Dubai is trans-shipment,” he says. “Whenever we do anything here, it’s based on Dubai being a hub. You can warehouse here and serve clients in the Gulf; a big chunk of our business out of Dubai goes to Saudi Arabia. Th is is a continuation of that process.”

Such is the company’s confi dence about the future, it has reserved another patch of land at the site to allow future expansion. Also with the future in mind, the warehouse will be built to incorporate all the latest energy saving and water recycling technologies.

Aramex is one of the most high-profi le investors in Dubai Logistics City, the warehouse component of Dubai’s new airport development, and Ghandour downplays concerns over the project, again emphasising that his company’s investment there is an investment in Dubai itself. “We’re not viewing DLC as an independent entity; it’s part of

our overall expansion and development,” Ghandour explains. “Being next to a potential airport that might be delayed is fi ne. Th e services already off ered in the city are fi rst class, whether the current airport or Jebel Ali.”

Like all successful companies, and unlike many of the packages it delivers, Aramex didn’t arrive where it is overnight. Ghandour founded the company in Jordan in the early eighties by off ering local ground transportation services to international logistics fi rms that didn’t have a presence in the region.

Business took off and Aramex became the fi rst Arab company to list on the Nasdaq, in 1997. It passed back into private ownership in 2002 when Rasmala Buyout Fund snapped up the company and it then relisted in 2005 when it fl oated on the Dubai Financial Market.

Over the years, it has grown from a courier company that challenged

government postal services into a one-stop provider of supply chain solutions, including warehousing and sea, air and freight transportation − what is

known in the industry as a ‘3PL’. Aramex has achieved

global reach through an initiative known as the Global Distribution Alliance (GDA). Led by Aramex, the GDA brings together 40 independent companies from around the world, giving each company in the network global reach through access to 12,000 offi ces, 33,000 vehicles and 66,000 employees.

In recent years, Aramex has cemented its global position with a number of

acquisitions, including the highly-publicised takeover in 2006 of Dublin-based Twoway-Vanguard and the 2005 purchase of UK-based Priority Airfreight.

During the interview, Ghandour confi des that Aramex expects to make further

acquisitions in the next six months. With the downturn driving

company valuations down to more realistic levels, the CEO says Aramex is actively looking at three geographies − Africa, Central Asia and South East

Asia − for potential takeovers targets.“You will hear us doing more

deals in the coming six months in these three areas,” he says.

An idea recently fl oated by some analysts is that Aramex might be acquired, or seek to be acquired, by an international logistics player. It has broad regional reach and its brand is well-known and respected in the Middle East. Asked whether that might happen, Ghandour quickly replies, “We are not available. Even if somebody wants to [acquire us], they cannot aff ord us.”

After so much growth, so many changes and 28 years at the helm of the company, Ghandour has no thoughts whatsoever of pulling back. Talking to him, it is clear

that he has thoroughly enjoyed the challenge of overcoming the

economic downturn.“Why would I want to retire?”

he says, seemingly surprised to be asked the question. “Th ere is so much more

to do in this industry, in this company. Th e industry as a whole is so exciting. In crisis, there is nothing better

than management. In the past twelve months, the

enjoyment of working in Aramex was supreme because in

crisis, you fi nd opportunity.”

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ELIAS MONEM CEO OF AGILITY IN THE MIDDLE EAST & AFRICA

Elias Monem is the chief executive offi cer of Agility in the Middle East and Africa, with responsibility for the company’s operations in 18 diff erent countries. A graduate from the American University of Beirut, Monem has almost 19 years of experience in the logistics and freight forwarding industry and has been attributed for expanding the company’s presence in the region and managing a dedicated workforce of over 9000 people. Prior to joining Agility, Monem worked at Airlink International for almost 17 years, which he transformed into a leading freight forwarder and logistics provider in the UAE. During his tenure there, Monem established one of the largest 3PL facilities in Jebel Ali free Zone. In addition, with the transformation of Dubai as the Middle East’s hub for events and conferences, Monem focused on creating a leading logistics provider for regional exhibitions such as IDEX and Dubai Air Show.

BILL HILL GROUP VICE PRESIDENT OF GAC LOGISTICS

Appointed as the group vice president for GAC Logistics in July 2002, Bill Hill is based in the company’s head offi ce in Dubai, with responsibility for formulating corporate strategies and driving the international growth of its logistics business. Prior to his current position, the Salford College graduate was GAC Asia’s regional manager, based in Singapore. During his six-year appointment, GAC established an integrated network of 24 offi ces across Asia, providing end-to-end logistics and supply chain services for some of the world’s largest corporations, including

Unilever, Philip Morris, Gillette, 3M and Sara Lee. During his

tenure, Hill also led GAC’s successful acquisitions of Benair Freight UK (2005), Benair Freight Malaysia

(2001), Z-Freight P h i l i p p i n e s , and the Asian companies of European freight f o r w a r d e r InterForward Limited (1999).

GARRY KEMP MIDDLE EAST DIRECTOR, DHL EXPRESS

DHL Express appointed Garry Kemp as area director for the Middle East, North Africa and Turkey (MENAT) in March last year, with responsibility for 15 diff erent countries, including Saudi Arabia, Oman, Kuwait and the United Arab Emirates. Located at the company’s regional offi ce in Bahrain, Kemp is a New Zealander with a thirty-year career at DHL Express, including positions in general management, operations, sales and commercial. Over the past year, he has overlooked the opening of new facilities in Jebel Ali Free Zone and Jordan, received the ‘best company to work for’ award in Saudi Arabia, and developed the relationship between DHL and Middle East customs authorities with a number of initiatives, including a recent tour of the company’s security operations in Bahrain and the sponsorship of a special achievement award for Dubai Customs.

HAMDI OSMAN SENIOR VICE PRESIDENT, FEDEX MIDDLE EAST

As the senior vice president of FedEx in the Middle East, Africa and Indian subcontinent, the career growth of Hamdi Osman is well-known across the logistics sector.

Starting his occupation in 1978, Osman was fi rst hired as a truck cleaner for FedEx, but made such an impression on management that a string of promotions were soon to follow, including positions as a courier (1979), operations manager in New Jersey (1982), senior operations manager (1985) and managing director for the US Northeast District (1990). In September 1991, Hamdi moved to Dubai, taking on the role of managing director for the Middle East and Indian subcontinent, which was upgraded to vice president of operations for the Middle East, Indian subcontinent and Africa in 1997, and later to his current position. With such a multitude of positions, it’s little wonder that Osman’s knowledge of the industry is considered second to none.

ENVER MORETTI CEO AND PRESIDENT, DHL GLOBAL

FORWARDING IN THE EMA REGIONDHL Global Forwarding has continued to develop its presence in the Middle East over the years, with a series of multi-million dollar investments in the region being overlooked by Enver Moretti, the company’s chief executive offi cer and president in the EMA region. Most recently, this includes a contract to lease storage space at the forthcoming Bahrain Logistics Zone complex, together with the opening of a US$50 million warehousing

facility in Jebel Ali Free Zone, both of which are being

operated by Danzas, DHL Global Forwarding’s brand in the Middle East. In addition, Moretti, who

speaks Italian, English, Arabic and French, visited

Dubai in November 2009 to announce the signing of a contract to provide low-cost airline FlyDubai with a range of

logistics services.

JINENDRA SANCHETI MANAGING DIRECTOR OF TNT IN MEA REGION

Based in Dubai, Jinendra Sancheti is the managing director of TNT in the Middle East and Africa (MEA), with responsibility for 41 countries across the two

regions. With a degree in commerce from the University of Delhi, Sancheti started his career at Unilever and moved to TNT in 1990 with a position at the company’s Bahrain offi ce. He was later promoted to regional fi nance director of both the MEA and Asia regions, followed by a stint as managing director for the Indian subcontinent, overlooking TNT’s express and logistics businesses. In his current role, Sancheti has emerged as one of the most powerful men in Middle East logistics, especially within the express sector, and regularly participates in a number of industry events and forums. He also serves on the board of advisors for the Supply Chain and Logistics Group (SCLG) in Dubai and takes an active role in the Express Industry Council.



HALUK ÜNDEGER UPS DISTRICT MANAGER IN THE MIDDLE EAST

A relative newcomer to the regional logistics industry, Haluk Ündeger was appointed the district manager of United Parcel Services (UPS) in the Middle East, Central Asia and Turkey, following the company’s decision to purchase Ünsped, its service agent in Turkey,

which was actually founded by Ündeger in 1981. Following this acquisition, the

50-year old was given responsibility for the express package, freight forwarding and logistics services of UPS in 21 diff erent countries,

including Saudi Arabia, Bahrain and the UAE. Since this time, the

company has boosted its market share in the Middle East by launching a range of express delivery solutions. In particular, its domestic express service was established in countries throughout the region, enabling shippers to consolidate their package delivery services with one carrier to save on time and money.

SYED MUSTAFA VICE PRESIDENT OF LOGISTICS, ALMAJDOUIE GROUP

With the logistics sector increasing its focus on the Saudi Arabian market, itmakes sense that Syed Mustafa heads the list of entrants from the Kingdom in this year’s power list. As vice president of logistics at the Almajdouie Group, Mustafa has helped to pioneer the concept of outsourced logistics in Saudi Arabia, with major breakthroughs being achieved in recent years. As a result, the growth of Almajdouie’s various logistics operations has outperformed some of the biggest players in the industry, especially with ventures such as Almajdouie Logistics and Distribution (MLD), Almajdouie PSC Heavy Lift Company (MPSC) and Almajdouie Heavylift Transport and Engineering (MHL). As acceptance of outsourced supply chains increases in the Kingdom, Mustafa’s biggest challenge is maintaining Almajdouie’s lead in the wake of competition from newer entrants, such as Wared Logistics and Hala Supply Chain Services.

SHAMSUDEEN AHMED CEVA LOGISTICS REGIONAL VICE

PRESIDENT IN THE MIDDLE EASTAn international powerhouse in the supply chain sector, CEVA Logistics has recently allocated a staggering US$800 million to develop its presence in the Middle East region. Playing an infl uential role in the decision making process for this generous budget is 50-year old Shamsudeen Ahmed, the company’s regional director in the Middle East. Prior to joining CEVA in September 2007, Ahmed had three decades of experience with other leading players from the industry, including the likes of Panalpina World Transport, Schenker AG and Exel Middle East. Th e Indian graduate, who studied a degree in marine management, is now responsible for a growing network of warehouse facilities throughout the region, including CEVA’s fl agship Middle East headquarters, which was opened in the heart of Jebel Ali Free Zone South in October 2009.

WARREN ERFMANN CEO OF BARLOWORLD LOGISTICS IN THE

MIDDLE EAST AND ASIATh e power structure in Middle East logistics has been altered by a recent infl ux of mergers and acquisitions, which explains the inclusion of Warren Erfmann in this year’s list. Until a couple of years ago, the executive was a relatively unknown face in the region, but his profi le was transformed in 2008, when South Africa’s Barloworld Logistics made its highly-publicised acquisition of Swift Freight, a leading Dubai-based freight forwarder. As CEO of Barloworld Logistics in the Middle East and Asia, it has been Erfmann’s responsibility to ensure that Swift Freight was seamlessly integrated into his operations to provide customers with additional value. Despite taking place in the midst of a global recession, the process was a success and Erfmann has since capitalised on a number of Swift Freight’s strengths, including its lead on cargo routes between the Middle East and Africa.

WERNER KLEYMANN MIDDLE EAST MANAGER OF KUEHNE + NAGEL

As a major player in the global logistics industry, Kuehne + Nagel has highlighted the Middle East as a key market for its future development, attracted by the diversifi cation of local economies and liberalisation of trade across the region. To capitalise on this situation, the company’s Middle East director, Werner Kleymann, has been instrumental in launching a long-term expansion strategy, which includes a large-scale warehouse in Dubai Logistics City to compliment Kuehne + Nagel’s existing facility in Jebel Ali. Werner’s vision is likely to pay rich dividends and he remains loyal to DLC, despite a series of project delays. Th e executive is also keen to capitalise on market growth in Saudi Arabia and fi nalised a deal for Kuehne + Nagel to become the fi rst global logistics provider to operate a wholly-owned subsidiary in the Kingdom, which will undoubtedly cement the fi rm’s regional market share in coming years.

TOM NAUWELAERTS HEAD OF AL-FUTTAIM LOGISTICS

Th e head of Al-Futtaim Logistics since April 2008, Tom Nauwelaerts has introduced a number of changes to the Dubai-based 3PL company over the past couple of years. In particular, the European veteran has been hailed for his re-structuring of operations in the second half of 2009, with a focus on effi ciency maximisation and cost minimisation to overcome challenges from the global recession. Nauwelaerts has a wealth of experience in the trade, including two years as chief executive offi cer of ALS Freight Management Group in the United Kingdom. Moving forward, he has revealed plans for a three-phase expansion of Al-Futtaim Logistics, with the development of warehousing infrastructure in the United Arab Emirates, further investments into the company’s fl eet of delivery vehicles, and a potential entry into other countries in the Middle East and throughout the world.



RICHARD BELL GENERAL MANAGER OF RHS LOGISTICS

With around 18 years of experience in the supply chain sector, Richard Bell was appointed the general manager of RHS Logistics in September 1998, following previous roles at Taylor Barnard Distribution, Hays Distribution Services, NFT Distribution and Inchcape Marketing Services. Over the past decade, the 39-year old executive has developed RHS Logistics into a leading player in the United Arab Emirates logistics industry, with a world-class warehouse in Jebel Ali Free Zone and customers such as Hewlett Packard, Western Digital, Mothercare and Sergeant Major. Despite a market slowdown in the Middle East, Bell is proceeding with an ambitious development strategy for RHS Logistics in 2010, with a number of diff erent options being considered, including an expansion of the existing warehouse in Jebel Ali Free Zone and the potential of constructing a new facility in Dubai Logistics City.

BRIAN MCHALE CHIEF EXECUTIVE OFFICER OF WARED LOGISTICS

Brian McHale was appointed the chief executive offi cer of Wared Logistics in 2009, with a brief to develop the company as Saudi Arabia’s latest and most

promising entrant to the global 3PL sector. For McHale, who has previously worked for the likes of Menlo Worldwide Logistics, Ryder Integrated Logistics and NFI Industries, this would be amongst the biggest challenges in his career to date. However, with healthy growth prospects for Saudi Arabia’s logistics industry, supported by US$32 million in initial capital, the scope for Wared Logistics is undeniable and its success will provide a boost to McHale’s power list ranking in future years. Earlier indications of the company’s success in Saudi Arabia are already apparent, with a network of 12 distribution centres established in cities such as Dammam, Medina, Jubail and Qassim, while plans have also been outlined by McHale for 40,000m2 facilities in Riyadh and Jeddah.

MARTIN ARANHA MANAGING DIRECTOR OF GLOBELINK WEST

STAR SHIPPINGA limited number of companies have experienced the Middle East logistics industry’s roller coaster of highs and lows in the past 20 years. However, launched in October 1989 – and celebrating its second decade of operations – Globelink West Star Shipping has emerged as a veteran trading house in the region, with plenty of experience in succeeding during the goods times and the bad times. At the helm of this remarkable journey is Martin Aranha, who has seen the company’s annual turnover increase to US$165 million, with a team of 40 employees and a growing network of warehouses in the United Arab Emirates, including Globelink’s latest facility in Jebel Ali Free Zone, opened last year. With such success, he’salso proved hismettle as a solid logistics CEO.

KLAUS TINDBORG CEO OF DAMCO IN THE MIDDLE EAST

Th e logistics sector has faced a period of inevitable change in the past year, with the A.P. Moller-Maersk Group being amongst the biggest players to evaluate their global operations and adapt to a changing business environment. As a result, the company’s freight forwarding and supply chain divisions – Damco and Maersk Logistics - were merged under the Damco brand throughout the world. For the Middle East, which has been managed by Klaus Dahl Tindborg in Dubai since 2005, the primary objective was

ensuring a minimum impact for customers in the region. And

thankfully for Tindborg, who has previously served as Damco’s global head of human resources, the merger process was

deemed a major success, especially in the UAE, Saudi

Arabia, Kuwait and Bahrain, helping to cement his position as a prominent force in MiddleEast logistics.

JEFF KHOURY MANAGING DIRECTOR OF TOLL GLOBAL

FORWARDING IN THE MIDDLE EASTTh e growth of Toll Global Forwarding (TGF) in the Middle East has increased the infl uence of regional director Jeff Khoury, who is ranked a little outside of this year’s top 15. Most recently, TGF has benefi ted from its acquisition of Logistics Distribution Systems (LDS), a Dubai-based 3PL company with a central warehouse facility in Jebel Ali Free Zone. Th e move has provided an instant boost to TGF’s Middle East operations and follows a similar acquisition of BALtrans, which was re-branded as Toll Global Forwarding across the region last year. Rumours suggest that further acquisitions in the Middle East are a certain possibility in 2010. With such health levels of growth, Khoury has expanded his team over the past year, making particular use of individuals that were made redundant from other logistics companies due to the global recession.

KHALID AL SHIRAWI EXECUTIVE DIRECTOR OF GLOBAL SHIPPING

& LOGISTICS (GSL)Despite a recession, and the obvious impact on supply chains, it seems Global Shipping & Logistics (GSL) has continued to develop at full pace in the last year,

under the watchful eye of executive director Khalid Al Shirawi. With over 20 years of experience in the distribution business, Al Shirawi has captured a sizeable share of the temperature-controlled and cold storage market in the UAE, with GSL customers including Baskin-Robbins, Federal Foods and Coldstone Creamery. As a result, the company recently doubled its warehousing space at Dubai Investment Park and completed the certifi cation process in four diff erent categories from the International Standardisation Organisation (ISO). Moving forward, Al Shirawi is now contemplating an entry for GSL into other Middle Eastern countries and will overlook a further expansion at Dubai Investment Park.



WARREN JACOB CEO OF TRANSWORLD

A well-known face in the Middle East logistics industry, following his stint as regional director of Freight Systems, Warren Jacob was appointed the chief executive offi cer of Transworld last year, with responsibility for expanding the Dubai-based company’s presence in the local market. Shortly before his appointment, a US$12.25 million warehouse was opened by Transworld in Jebel Ali Free Zone and Jacob has revealed his intentions to support the facility

by developing a portfolio of industry-specifi c products and

services, while encouraging a greater level of interaction with existing customers. Progress has already been

made following a strategic partnership with Japan-based Suzue Corporation in October

2009, which resulted in both of the parties representing

each other’s freight forwarding and logistics services in their respective operating countries.

GHASSAN ABUGHAZALEH GENERAL MANAGER OF STORALL

Since its inception in 2006, Storall has helped to pioneer the concept of self storage in the Middle East, operating from a central facility in the heart of Jebel Ali Industrial Estate. To date, the company has more than 200 self storage rooms, in addition to specialised areas for general and palletised storage. However, plans are being fi nalised by 45-year old general manager Ghassan Abughazaleh to develop the brand even further in 2010, with the potential of additional branches in key locations across the United Arab Emirates, together with a foray into cargo transportation and cold storage systems. A graduate of business administration from the American University in Cairo (AUC), Abughazaleh has 23 years of executive experience in developing various Middle Eastern fi rms, including Arab Investment and Development Company, Metico Dubai, Tiba Agricultural Company and Original Kreative Alternatives.

MAHMOOD SAKHI AL BALUSHI CEO, AL MADINA LOGISTICS SERVICES

At a time when the global recession has raised alarm bells for the logistics sector in developed markets such as the United States and Europe, it seems Oman has

been identifi ed as a hidden gem in the Middle East freight sector, with Business Monitor International (BMI) forecasting an average growth of 4.5% per annum between 2006 and 2010. Such reports are welcome news for 43-year old Mahmood Sakhi Al Balushi, CEO of Al Madina Logistics Services (AMLS) and graduate of St. Edward’s University in Texas, who has grand ambitions to establish a warehousing network throughout the Sultanate, which will measure 275,000m2 in total and host a complete range of supply chain solutions, including storage, transportation and consultancy services. Al Balushi’s multi-million dollar strategy will also be complemented by a fl eet expansion, technology overhaul and entry into other Middle East markets over the coming year.

AMIN AL ARRAYED GENERAL MANAGER OF FIRST BAHRAIN

Majaal was launched with much fanfare by First Bahrain in October 2009, with a marketing campaign that claimed it was the fi rst logistics company in the Middle East to focus on the small to medium enterprises (SME) market. Th e brainchild of First Bahrain’s general manager Amin Al Arrayed, the project will soon open its doors to a US$45 million warehousing complex at Bahrain Investment Wharf, with plans to franchise the brand to other Middle Eastern countries in the coming years. With more than 13 years of experience in the banking sector, Al Arrayed completed his MBA in Business Administration at DePaul University in Chicago and Bachelor’s Degree in Economics at the University of Redlands, California.

MATTHEW DERRICK GENERAL MANAGER, MOMENTUM LOGISTICS

A graduate of business administration from Coventry University in the UK, Matthew Derrick was appointed the general manager of Momentum Logistics soon after the company was launched in October 2008. Selected for his wealth of experience in the supply chain sector, Derrick has previously worked at automobile giants BMW and Rover Group, together with a fi ve-year stint at Al-Futtaim Logistics. Under his management, Momentum Logistics has crossed a number of milestones, including the construction of 12 warehouses at Sharjah Inland Container Depot (SICD), while a further 12 warehouses are scheduled for completion in 2010. In addition, the company has levelled a 7 million square foot site in the Al Saja’a district of Sharjah in preparation for its forthcoming International Logistics City complex.

MOHAMMED MOHEBI FOUNDER AND CEO OF MOHEBI LOGISTICS

With homegrown talent such as Gulf Agency Company (GAC), Aramex and Agility having such a strong foothold in the Middle East logistics industry, it would appear

a challenge for newcomers to establish a leading presence in the market. However, it’s a challenge that Dubai’s powerful Mohebi family took with full confi dence in 2007, following its Dhs1 billion (US$367 million) investment to launch a third party logistics company, headed by the fi ercely ambitious Mohammed Mohebi. Despite being in his 30s, Mohebi had a solid track record prior to his assignment with Mohebi Logistics, having established the group’s travel and tourism arm – Mohebi Aviation – in 1995, which is today one of the top travel agencies in the Middle East. Since its launch, Mohebi Logistics has opened a 50,000m2 warehouse in Jebel Ali Free Zone South, which has attracted 70 multi-national customers, including Nestlé, McDonald’s and Danone.


MIDDLE EAST INFRASTRUCTURE DEVELOPMENT

ith billions of dollars being invested to develop the logistics infrastructure in Dubai, Abu Dhabi and Sharjah, it would appear a challenge for other emirates to compete for a lucrative share of the market. However, with an apparent fondness for

defeating the odds, Ras Al Khaimah has successfully marketed its RAK Free Trade Zone (RAKFTZ) to a growing community of regional and international businesses over the years, with over

W

DEVELOPMENT ZONEApproaching its 10th anniversary this year, Ras Al Khaimah Free Trade Zone (RAKFTZ)

is planning to develop its status as a Middle East logistics hub with a major US$2 billion expansion over the next fi ve years, explains chief executive offi cer Oussama El Omari.

7000 companies now based at the industrial complex. Even the global recession has failed to make a dent in revenue fi gures, which increased by 14.5% during the second quarter of 2009, compared to the same period in 2008 – an achievement that RAKFTZ’s chief executive offi cer Oussama El Omari credits to a fl exible business model that easily adapts to market changes.

“Th e slowdown has impacted everyone in some way. We have been fortunate that despite the ongoing economic crunch, our

www.arabiansupplychain.com | JANUARY 2010

free zone has continued to attract new business and maximise its long-term

growth prospects, which shows that we have the right strategy in place to counter the slowdown,” he explains. “As for clients,

we have tried to minimise the impact of this global recession by remaining fl exible

and trying to fi nd creative solutions so they can continue with their business.”

First established in 2000, RAKFTZ is divided into an industrial park, business park, technology park and academy zone for universities and colleges, which are spread across the mountainous northern emirate. A variety of plots are available for those interested in basing their supply chain operations in the free zone, ranging in size from 2500m2 to 500,000m2, with each tenant also benefi ting from incentives such as 100% foreign ownership and tax exemption.

“As we approach our 10th anniversary in May, the free zone has achieved a lot and truly established itself as a popular destination for logistics activities,” states El Omari with a humble sense of pride. “In particular, the industrial park has increased our logistical strength, as there are several choices available for companies there. However, it’s important to continue this momentum and we are working to increase the effi ciencies of companies that conduct their storage and transportation activities in RAKFTZ.”

Despite its focus on the future, it was actually RAKFTZ’s past achievements that were honoured at last year’s Supply Chain and Transport Awards (SCATA) in Dubai, where it received the trophy for Industrial Area of the Year. “It was a great honour to be recognised as the best in such a vast pool of resources. Receiving this award showed that our dedication and hard work are paying off . Th ere is vast potential in this market, but there is also tight competition, so highlighting the benefi ts that make us diff erent from the others is essential,” says El Omari. “For example, we don’t work ‘within the fence’. Instead of operating as a conventional free zone, the government wants RAKFTZ to distinguish itself as an investment agency. Th is is a new concept for a free zone and we attract customers by off ering a very fl exible solution.”

RAKFTZ’s marketing stance has predominantly focused on the relative cost eff ectiveness it off ers companies wanting to operate in the UAE. Th e cost of registering a business in the free zone starts from only US$5000, which is a sharp contrast to the rising cost of business in Dubai. Indeed, the price advantage has attracted a great deal of interest from off shore investors, which is something RAKFTZ is determined to develop further in the future. A recent international marketing campaign

23


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24

already received a strong response at industry events, especially from the United States, Germany, South Africa, Lebanon, Syria and Pakistan. “By establishing ourselves as a centre of effi cient and high quality logistics services, we can attract even more foreign investment,” says El Omari. “We are already working with many companies, such as international freight forwarders, to make this happen.”

At present, the vast majority of logistics service providers are based in RAKFTZ’s industrial park. Th e largest of the four parks, it is situated 15km north of the city centre and covers around 6 million square metres, off ering direct access to Saqr Port; the fi rst port available when entering the gulf. Th is gives tenants the option of building their own docking facilities for shipments to be unloaded directly at their facility. In addition, the opening of a road from the free zone to Dubai has become a major selling point. Th e Emirates Highway has almost halved commuting time as it now, dependant on traffi c, takes just 45 minutes drive to reach Dubai.

Th e proximity to Dubai, the logistics hub of the Middle East, has been perceived as a blessing not a curse by El Omari. As plans for Dubai Logistics City evolve, RAKFTZ strongly believes business is on such a large scale that everybody is set to capitalise.

“We don’t have any competition, we compliment each another. Th ere is so much business out here that everybody has a big stake, you can do so many things,” enthuses El Omari. “We are expecting a lot of companies to establish themselves with

us to get out of the crowds that have taken place in Dubai.”

Trying to attract business from Dubai, RAKFTZ made its presence felt in the emirate last year. Targeting logistics, construction and IT exhibitions, the free zone’s stand was a strong attraction to attendees

at SITL Dubai, GITEX Technology Week and the Big 5 show. It also used these events as a platform to launch an exclusive start-up package of $5000 for companies wishing to establish a base at RAKFTZ; this was inclusive of registration fees, commercial license, visas, membership fee of the RAK Chamber of Commerce, Industry and Agriculture and the offi ce annual rent.

As RAKFTZ continues its expansion plans, which have been valued at a staggering US$2 billion the next fi ve years, El Omari’s only concern is that demand will continue to exceed the development. “We are sold out. Demand is exceeding what we have available, so we just have to rush quickly and establish more infrastructure, more warehouses, and more business friendly incentives,” he says.

“Our developments include the second phase of our industrial park, in addition to container port and dry dock initiatives. Another project that will cement our position in the logistics industry is a forthcoming Aviation and MRO Park. Th e Middle East is projected, post recession, to remain one of the fastest growing regions in the world for both passenger revenue and cargo traffi c. Th erefore, a signifi cant business opportunity exists to competitively satisfy this market, especially since Ras Al Khaimah has such a good airport.”


“We are sold out, demand is exceeding what we have

available”

“We are sold out, demandis exceeding hat we haveavailable”

RAKFTZ business incentives: 100% tax exemption, 100% foreign ownership, residence visas, competitive labour, offi ce and warehouse rates.

RAKFTZ Industrial Park: Caters to heavy industries sector, distribution companies and logistics providers with a variety of warehouse facilities.

RAKFTZ Business Park: Caters to the service sector and general trading with a world trade and business innovation centre and range of business centre services and offi ces.

RAKFTZ Academy Zone: Caters to the education sector with seven universities from countries such as France, UK and India.

RAKFTZ Technology Park: Caters to the light industries and automated manufacturing projects with a combination of warehouses and offi ce space.

Transportation links: Saqr port (the fi rst port when entering the Gulf), RAK airport, dual carriage way links to Northern Emirates such as Khatt, Fujairah and Dhaid. Emirates Highway links to Dubai, Sharjah, Ajman, Umm Al Qawain and Ras Al Khaimah.

Companies currently operating in RAKFTZ: Straight Line Cargo Services, Dux Logistics & Marine, Eagle Maritime, Sea Crest Marine.

Forthcoming RAKFTZ developments: Container port and dry dock initiative, aviation and MRO (maintenance, repair and overhaul) park, navigator business campus.

PROFILE: RAK FREE TRADE ZONE

A range of developments are taking place at Ras Al Khaimah Free Trade Zone, including the industrial park’s second phase, a dry dock initiative and an aviation park

You can solve it independentlyor call a professional

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ASK THE EXPERT

THE INCREASING POPULARITY OF SEA-AIR TRANSPORTATIONTh e sea-air concept is basically a mixture of two diff erent transportation modes – the cargo is initially transported by seafreight and later by airfreight, which off ers a drastic saving in transit time compared to pure seafreight, as well as a maximum cost saving of 50% in comparison to pure airfreight. It’s the best of both worlds and Dubai has actually emerged as one of the world’s leading hubs for sea-air transportation.

ADAPTING TO CHANGE FROM THE CURRENT GLOBAL RECESSIONI believe that sea-air transportation plays a very important role for the Middle East logistics industry, which is highlighted by the fact that Dubai is currently amongst the top seven leading sea-air transport hubs in the world. In fact, the global recession

has provided a further boost to this method

of shipping cargo and as a result, the emirate’s sea-air capacity has developed in leaps and bounds recently - it’s now considered

the most viable and effi cient transit point

on the important North Pacifi c

trade route.

THE CORE STRENGTHS OF DUBAI AS A HUB FOR SEA-AIR TRANSPORTAs a hub for this type of transportation, Dubai has several advantages, especially as Jebel Ali is one of the most effi cient seaports in the world. It is served by most of the major shipping lines, predominantly from the Far East, with very short transit times from Hong Kong, mainland China,Indian subcontinent and South East Asia. In addition, Dubai’s customs formalities are relatively simple, which means seamless transport connections to ensure cargo can be custom-cleared from the seaport and delivered to airlines within fi ve or six hours.

ADDITIONAL SUPPORT FROM THELOCAL AIRPORT INFRASTRUCTUREDubai’s airport is also very effi cient, which is another bonus. Th e service providing company, Dnata, has further augmented this form of transportation by dedicating seven docks to receiving sea-air cargo. In addition, the airport is well connected, off ering a choice of more than 100 export destinations on a weekly basis. It’s quite right to credit Emirates Airlines in this respect, because it has played a vital role in the development of sea-air cargo, with its constantly growing fl eet and plenitude of direct services to Europe, Africa and more recently to the United States.

OTHER PIONEERS IN THE REGIONTh e airport in Sharjah has also played an increasingly vital role in augmenting the movement of sea-air cargo through the Middle East region. Many airlines off er direct scheduled freight capacities from Sharjah International Airport to Europe. Sharjah is also one of the leading sea-air hubs in Asia and has shown a growth rate of over 50% in the past couple of years.

PRIMARY FACTORS LEADING TO A BRIGHT FUTURE FOR SEA-AIRTh e future remains overwhelmingly positive. Regional airlines such as Emirates and Etihad, which operate at the major Middle Eastern airports, are off ering a high fl ight frequency and growing airfreight capacity. Also, looking at the developments currently underway in the region, this trend continues to remain positive. Th e new airport currently being constructed in Jebel Ali, as part of the forthcoming Dubai World Central development, is a truly integrated logistics platform that will further boost Dubai’s position in the sea-air marketplace. It will feature over 16 cargo terminals, some of which are exclusively dedicated to sea-air transportation, with an emphasis on single handling. Th is means the freight forwarder will be allowed to build their own pallets and deliver them directly to the airlines.

DEVELOPING THE MIDDLE EAST’S MARKET SHARE IN THE FUTURELooking at the future, I believe the Middle East defi nitely has the potential to compete with other parts of the world for a lucrative share of the sea-air market. A number of countries in this region have emerged as very strong contenders in the international logistics industry and their positions have continued to strengthen on a regular basis. For example, the transport infrastructure in the United Arab Emirates, Saudi Arabia and Bahrain are increasingly effi cient and well-developed, matching world-class standards. Th is is a major bonus for companies in the logistics industry, especially when you take into account the corresponding advantages in speed and cost. It also directly impacts the movement of sea-air cargo out of the region, with a particular emphasis on emirates such as Dubai and Sharjah.

QUESTION: What are the benefi ts of sea-air transportation for companies in the Middle East?

BESTOF BOTHWORLDS

This month’s column was written by Sumesh Nair,GM of Globelink West Star Shipping Middle East.


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MONTHLY AIR CARGO REPORT: EUROPE REGION*

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

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

Amsterdam (Netherlands) 111,981 -14.4 935,235 -23.0

Brussels (Belgium) 35,198 -22.3 332,420 -31.4

Cologne (Germany) 49,724 -0.3 402,039 -7.7

Frankfurt (Germany) 164,463 -6.4 1,332,823 -17.0

Istanbul (Turkey) 33,386 2.2 263,528 -3.3

Leipzig (Germany) 46,425 16.1 358,011 16.6

Liege (Belgium) 39,333 8.0 326,222 -16.9

London Heathrow (UK) 115,670 -6.9 963,889 -14.2

Luxembourg (Luxembourg) 51,570 -19.4 446,503 -25.0

Paris (France) 151,350 -7.2 1,321,450 -14.1

Vienna (Austria) 17,401 -2.9 136,065 -9.5

Warsaw (Poland) 4635 0.2 35,976 -12.6

Zurich (Switzerland) 22,679 -11.0 205,389 -12.1

FACTS & FIGURESAir Cargo Regional & International Statistics

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

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

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

MONTHLY AIR CARGO REPORT: AFRICA REGION*



Accra (Ghana) 3727 -19.4 34,931 -9.9

Addis Ababa (Ethiopia) 2026 n/a 28,426 n/a

Algiers (Algeria) 1267 -35.9 16,509 -5.1

Antananarivo (Madagascar) 850 -39.2 8474 -30.3

Cairo (Egypt) 20,721 -2.9 210,267 0.5

Casablanca (Morocco) 3808 -16.9 41,328 -6.7

Dar Es Salaam (Tanzania) 1587 -15.9 14,034 -21.2

Durban (S. Africa) 84 -43.6 1378 3.5

Entebbe (Uganda) 4244 -12.5 39,521 -12.4

Johannesburg (S. Africa) 19,637 -22.7 177,792 -25.8

Libreville (Gabon) 1329 -21.8 15,144 -9.7

Nairobi (Kenya) 22,234 -20.3 196,570 -13.4

Tunis (Tunisia) 1310 -34.4 13,482 -15.1

*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

13 November378

27 November373

EMIRATES SKYCARGO FUEL PRICE INDEX

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

DUBAI INTERNATIONAL AIRPORT: CARGO STATISTICS

23 October387

9 October341

4 December380


MONTHLY AIR CARGO REPORT: MIDDLE EAST REGION*



Abu Dhabi (UAE) 32,470 3.2 275,942 2.4

Al Ain (UAE) 446 -9.9 2246 33.6

Amman (Jordan) 6188 -16.9 60,675 -9.4

Beirut (Lebanon) 5884 -11.2 53,090 6.8

Dubai (UAE) 168,335 2.7 1,366,881 0.4

Fujairah (UAE) 3398 14.2 27,252 -6.5

Kuwait (Kuwait) 17,883 16.0 148,344 8.9

Muscat (Oman) 5650 11.6 45,446 2.6

Ras Al Khaimah (UAE) 497 n/a 3397 -48.4

Sharjah (UAE) 35,710 -3.9 303,386 13.7

MONTHLY AIR CARGO REPORT: NORTH & SOUTH AMERICA*



Anchorage (USA) 182,887 -6.1 1,341,645 -25.9

Buenos Aires (Argentina) 14,498 -7.3 106,741 -30.3

Chicago (USA) 105,173 -6.3 802,650 -22.4

Los Angeles (USA) 132,138 2.1 1,068,158 -14.8

Memphis (USA) 318,100 7.1 2,693,582 -2.0

Mexico City (Mexico) 26,187 -11.7 229,159 -21.5

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

MONTHLY AIR CARGO REPORT: ASIA PACIFIC REGION*



Ahmedabad (India) 1907 -16.6 15,882 -15.9

Bangalore (India) 14,024 3.4 117,557 -8.5

Bangkok (Thailand) 94,374 -5.4 736,642 -20.9

Chengdu (China) 40,812 34.2 269,205 -6.6

Colombo (Sri Lanka) 10,936 -11.6 98,395 -18.4

Fukuoka (Japan) 23,612 5.3 178,965 -12.4

Hong Kong (China) 307,032 -4.2 2,376,563 -14.9

Jakarta (Indonesia) 30,199 -34.4 306,261 -15.5

Kuala Lumpur (Malaysia) 53,578 -2.0 432,353 -17.1

Manila (Philippines) 33,283 10.8 245,100 -9.6

Mumbai (India) 48,014 0.2 413,916 -3.5

Osaka (Japan) 57,418 -22.0 426,181 -35.7

Seoul (Korea) 13,618 10.7 108,440 19.5

Shanghai (China) 248,265 7.7 1,746,103 -11.8

Singapore (Singapore) 142,934 -12.4 1,196,965 -17.4

Taipei (Taiwan) 129,403 6.4 927,029 -21.5

Tokyo (Japan) 174,686 -2.1 1,303,333 -19.6

INDUSTRY STATISTICS

For up-to-datefi gures, visit:

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Free zone investors can avail themselves of key advantages and benefits, such as 100 per cent foreign ownership, a tax-free environment, transparent laws and 100 per cent capital and profit repatriation.

RAK FTZ is one of the fastest-growing free trade zones in the region, with approximately 4,000 companies from 106 countries around the globe.

The Home of Business

Toll Free (UAE) 800-RAKFZ (72539) Tel +971 7 2041111 Email [email protected] Website www.rakftz.com

FOR MORE INFORMATION

Ras Al Khaimah Free Trade Zone


FACTS & FIGURESSea Freight Regional & International Statistics

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.

INDUSTRY STATISTICS

12 F

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FUJAIRAH BUNKER FUEL PRICE INDEX

BUNKER FUEL PRICE INDEX*

PORT / COUNTRY IFO380 IFO180 MGO MDO

Buenos Aires (Argentina) 464 484 673 705

Busan (South Korea) 492 503 640 649

Cape Town (South Africa) n/a 515 642 n/a

Fujairah (UAE) 449 460 630 n/a

Houston (USA) 434 446 n/a 600

Istanbul (Turkey) 467 480 n/a 645

New Orleans (USA) 451 462 n/a 619

Piraeus (Greece) 447 461 593 n/a

Port Klang (Malaysia) 460 463 630 n/a

Rio de Janeiro (Brazil) 453 471.5 646 n/a

Rotterdam (Netherlands) 426.5 444 592 560

Singapore (Singapore) 451 461 594 n/a

*Information on the bunker fuel price at port facilities in the Middle East, North and South Europe, North and South America, and Asia, featuring data from 12th December 2009. The prices are quoted in US$ per metric tonne and split into four categories: 380 centistoke (IFO380), 180 centistoke (IFO180), Marine Gas Oil (MGO) and Marine Diesel Oil (MDO).

Jan

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TOTAL THROUGHOUT FOR SAUDI PORTS IN TONNES

CARGO TYPEOCTOBER 2009 YEAR-TO-DATE

Discharged Loaded Discharged Loaded

Bulk cargo (solid) 1,796,750 629,630 16,503,144 5,827,770

Bulk cargo (liquid)* 397,432 4,936,244 4,383,611 48,546,557

General cargo 421,296 73,288 4,338,131 682,261

Containers (in tonnes) 2,221,757 1,637,462 21,424,354 14,222,068

Ro-Ro and vehicles 132,960 13,471 1,252,517 162,171

Livestock 14,004 n/a 122,321 n/a

TOTAL 4,984,199 7,290,095 48,024,078 69,440,827

TOTAL PORT THROUGHPUT 12,274,294 117,464,905

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

CONTAINERS (TEU) 2009 2008

October Year-to-Date October Year-to-Date

Discharged 195,763 1,858,959 209,126 1,974,070

Loaded 195,092 1,801,979 187,909 1,878,105

TOTAL 390,855 3,660,938 397,035 3,852,175

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 Dec466

12 Oct444.5

01 02030405

1116212627282930

2 23232232333242 2517 18 19 2012 13 14 15

06 070809 10011 02203


EVENTS

226272

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

24th – 27th January 2010DEFENCE LOGISTICS MIDDLE EASTTh e third annual Defence Logistics Middle East conference is being held in Abu Dhabi this month, with topical discussions on a range of military supply chain issues, from the continued transformation of inventory management to planning improvements for the delivery of emergency shipments. Guest speakers at the three-day seminar will include senior representatives from the likes of Agility Defence and Government Services, PRTM Management Consultants and the European Supply Chain Council.VENUE: Armed Forces Offi cers Club, Abu DhabiEMAIL: [email protected]: www.defl ogme.com

8th – 10th March 2010WORLD OF PERISHABLES 2010Th e growing popularity of fresh goods in the Middle East, fuelled by a signifi cant increase in the regional population, has created a number of logistical challenges. Covering the entire supply chain - from the farming process to storage and distribution to retail operations - the World of Perishables 2010 exhibition is being held at Dubai Airport Expo for trade professionals that specialise in activities such as importing, exporting, warehousing and transportation.VENUE: Airport Expo, DubaiEMAIL: [email protected]: www.wop-dubai.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 – 9th February 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

9th – 11th March 2010COMMERCIAL VEHICLES MIDDLE EAST With a growing amount of cargo being transported by road in the Middle East, the forthcoming Commercial Vehicles Middle East exhibition has been marketed as the region’s only specialist show for all types 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 a number of trade seminars, technical workshops and a large-scale display area to view the latest models available in the local market.VENUE: Dubai Convention and Exhibition CentreMAIL: [email protected]: www.commvehicles.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

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

12th – 14th March 2010KUWAIT LOGISTICS CONFERENCEKuwait is exploring a number of options to sustain its future economic growth, particularly in the aftermath of a crippling global recession. To highlight the important role of the supply chain sector in achieving these goals, the fi rst Kuwait Logistics Conference is taking place in March 2010, with topics such as reverse logistics, RFID technology and strategic partnerships being discussed by regional experts, including Professor Philbert Suresh from i_FUN (Intelligent Friends in University Network).VENUE: Hilton Hotel, KuwaitEMAIL: [email protected]: www.gust.edu.kw/glf

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

ostand Supply Chain May 2010. Th ey

–NsOfo

logisticsforum ffdiscussdthe domt

delegates are forecast for SCLG’s annual summit

200+


FACE TO FACE

“Students in the Middle East will

truly benefi t from direct engagement with our Glasgow

team”

“Students in the Middle East will

truly benefi t from ect engagementth our Glasgow

team”

What prompted the University of Strathclyde to launch its postgraduate logistics course in the Middle East?To support the growth of this region as a major distribution hub, there is a strong requirement for knowledge and skills in supply chain and logistics management as a whole, in addition to specifi c skills in operations management for airports and seaports. Th is is recognised by the local authorities, who convinced our team that a practically focused programme such as ours would attract a suitable number of quality candidates from the industry.

Why have you decided to base the programme in Abu Dhabi?A number of factors led to this decision, including the quality of facilities available, proximity to our existing MBA operations, accessibility to candidates and Abu Dhabi’s economy stability.

With a growing number of logistics courses in the region, what makes the University of Strathclyde different?We are aware of the competition, but our programme is diff erent in a number of ways. Firstly, the course has been fully accredited by the UAE authorities. Secondly, Strathclyde Business School is one of the world’s leading institutes with a reputation for practically focused programmes that are aimed at practicing managers. Th is means our students will add value to their employees from day one. We have many examples of student assignments that have achieved considerable benefi ts for their companies. One such assignment resulted in a saving of over US$1.5 million in 2006. Th irdly, our programme is fully accredited by the Chartered Institute for Purchasing and Supply (CIPS), which is the professional organisation for supply chain managers.

Will the course modules remain the same as your programme in Scotland? Th e structure of the programme will essentially remain the same, although the delivery of content will change to suit the needs of individual cohorts. We believe that each student is an individual and they have individual objectives and learning needs. As the programme is delivered in the style of an executive education programme, there is a lot of room for customised discussion in the class, as well as with individual students out of the class. We also believe that our approach to assignments allows students

to customise the content of each module to suit their specifi c needs and interests.

Will you have a local team to teach the programme? We are using the existing team from Glasgow to deliver the programme, with support from local employees. Th e Glasgow

team are experts in their fi eld and involved with research programmes across the world. Our studies have implied that students in the Middle East will truly benefi t from direct engagement with global experts.

What type of students is the university expecting to attract with this course? We are looking for professionals that work in the supply chain of their organisation, for example a management position in operations, planning, procurement or logistics. Having said that, we have also attracted students from engineering, marketing and fi nance functions, as they felt a solid understanding of how the entire supply chain operates would allow them to perform their jobs better. We are hoping to attract people from a variety of diff erent industries too, including the commercial, industrial, public and military sectors.

Do you plan to develop your logistics courses in the future for the Middle East?Yes, this is defi nitely something on our future agenda. As the programme starts taking roots and we get talking to students and their companies, we will get valuable feedback which will infl uence how the course should shape from here. It is highly conceivable that the UAE programme will change and shape in a diff erent direction to the programme in Scotland, depending on the specifi c feedback of students that are attracted to these programmes.

In general, what are your views on recent developments in Middle East logistics?Until the recent global economic crisis, the Middle East was seen as off ering more growth potential for logistics and transport than either North or South America. Th e phenomenal growth of global trade has provided the Middle East with opportunities to capitalise on its strategic geographic location and excellent accessibility by air, land and sea. We are aware that things have slowed down signifi cantly in the past year, but we see this as a temporary problem possibly lasting until the end of 2010. With some European and the US economies now showing signs of recovery, we believe that the rate of trade between Asia and Europe will continue to grow, therefore increasing the need for quality supply chain executives in the region.

ON THERIGHT COURSEProfessor Umit Bititci from the University of Strathclyde explains why theinstitute is bringing its masters programme in logistics to the Middle East.

FACE TO FACE INTERVIEW

logistics middle east - jan 2010

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