logistics middle east - july 2010

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSJULY 2010 ISSUE 70

GULF WAREHOUSING COMPANY І AL-FUTTAIM LOGISTICS І GAC І MOMENTUM LOGISTICS

An ITP Business PublicationLicensed by Dubai Media City

PLAYING WITH FIRECan the latest generation of fi re protection systems safeguard warehouses?

CLIMATE CONTROLHow a cooler warehouse can translate to increased productivity from workers

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CAPITAL GAINSWaha Land tackles the shortage of warehousing space in Abu Dhabi

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CONTENTS

www.arabiansupplychain.com | July 2010

CONTENTS

02 Editor’s LetterWhat does it take for a logistics company to be considered admirable in the Middle East?

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

07 News Update• Dubai Municipality inspects food storage • Panalpina opens new DLC warehouse • GAC contracted to handle helium in Qatar• Aramex introduces hybrid bikes in Lebanon• Saudi airline warehouse damaged by blaze• Tamkeen to train Bahrainis in supply chain• Agility signed for $17m Saudi Arabia contract• Hellman selected for Actavis supply chain• Aramex expands partnership with UNICEF• Shell awards Transworld Logistics contract

Issue 70 July 2010

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

16 Cover StoryA look at the Al Merkaz warehousing project launched by Waha Land to overcome Abu Dhabi’s limitations in storage capacity.

20 Temperature ControlA detailed overview of the temperature controlled storage sector, with company profi les and a Middle East case study.

30 Warehouse Fires With a string of warehouse fi res in the Middle East this year, can the latest generation of protection systems actually protect storage centres from potential damage?

34 Company Profi leHow the growth of Qatar’s logistics industry has benefi ted Gulf Warehousing Company.

38 Fleet Management SystemsCan fl eet management systems reduce the number of road fatalities in the Middle East?

42 Top 10 Airfreight HubsFrom Jordan to KSA, these are the Middle East’s most popular destinations for air cargo.

48 Ask the ExpertMatthew Derrick from Momentum Logistics shares his thoughts on supply chain success.

56 Face To Face InterviewWith an optimistic outlook for the rest of 2010, Rebecca Fox of CIPS talks membership.

20 30 42

For the latest news and stories go to

16

2 JULY 2010 | www.arabiansupplychain.com

EDITOR’S LETTER

2

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What makes a logistics company admirable?

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o just what does it take for a logistics company to be an admirable one? What qualities would you deem most valuable? Let’s think

about it for a minute. Profi tability? Perhaps, but I can think of quite a few organisations that are highly profi table and not thought of in a positive light. A company that isn’t afraid to set trends or send ripples through the water? Sure, but inevitably change will upset some of those who prefer the status quo.

I believe an effi ciently run operation is something everyone can applaud, whether you are an employee of an organisation, or a customer. Th is month we take a look at the Al-Futtaim Motors Parts Distribution Centre (PDC) in Dubai, where a climate controlled environment has eff ectively increased worker effi ciency and morale, while decreasing on-the-job accidents.

Th is leads me to our next commendable quality: safety. How a company values its own. While Al-Futtaim places heavy emphasis on this, so too do insurance adjusters. We’ll examine fl eet management systems (FMS), and how they can improve both the safety, as well as effi ciency of your organisation. We’ll also take a look at fi re

Sprotection systems, and what can be done to neutralise and/or suppress the risks of warehousing fi res.

After studying various case studies on mixed-use light industrial projects, Hazem Al Nowais would assuredly suggest fl exibility as an admirable quality. His Al Markaz project was designed with this in mind, and will eventually off er up elastic solutions to the Abu Dhabi warehousing demand. In reviewing case studies, Al Nowais said he ‘worked backwards’ examining similar developments that failed, noting the lack of fl exibility as the most common denominator.

As we’ve packed this month’s issue of Logistics Middle East full of useful information, make sure to check out the Top 10 Middle East Airfreight Hubs. Th ere has been a shakeup at the top, as Abu Dhabi International Airport is placing greater emphasis on its cargo operations.

I hope you’ll enjoy this issue and we look forward to seeing you again next month.

If you have any comments to make on

this month’s issue, please email Casey

McFann, editor of Logistics Middle East

magazine ([email protected])

Audited by: BPA WorldwideAverage Qualified Circulation 6,379 (July - Dec 2009)

4

READERS LETTERS

JULY 2010 | www.arabianbusiness.com/transportation4

A role model in Middle East logistics?Dear Editor,

It was a pleasure to read the interview with Raaju Sundararaaj, CEO of TTL

Shipping and Logistics last month. I personally feel that it was not only an interview, but a motivation speech as well. It teaches the importance of a positive attitude, positive approach, self-confi dence and of course a ‘can-do’ attitude. I am very proud to say

that I worked with Raaju’s team while he was a sea freight manager, and am

really excited to watch his professional growth. I can say that his true hard work,

sincerity and genuine attempts to honour customer requirements were instrumental in helping achieve his goals and aspirations. Th ameen Basha

The importance of industry awardsDear Editor, Congratulations to the winners at the Supply Chain and Transport Awards (SCATA) 2010 – every one of them is integral to the logistics revolution within the GCC region. Although the awards may run to form and expectations, nobody can detract the positive impact in the industry. Th e event has more than fulfi lled its expectations, as my colleagues and I had a wonderful time. It’s worth mentioning that such celebrations always contribute to positive news across the board room too.Professor Philbert Suresh

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Newcomer networkingDear Editor, I have to be honest with you. Last month’s Supply Chain and Transport Awards was one of the best professional experiences I have come across. As a recent university graduate, I am only beginning my career in multi-modal logistics. However, having the opportunity to meet and talk with some of the most experienced and respected people within the business was an experience I will not soon forget. I would like to congratulate all of this year’s winners on their success and thank all of those involved for hosting such a prestigious event. I am looking forward to it again next year, where I hope to see some familiar faces. John Maher

A successful team effortDear Editor, Congratulations to Supply Network Solutions (SNS) for such an outstanding job at this year’s SCATAs. Th is is a new achievement that we can add to SNS’s repertoire! I know that in the past year, we have all worked very hard to accomplish our goals, and this event only reinforced our confi dence in each other, as well as SNS. If we maintain this level of energy into the coming months the future will indeed be bright. I look forward to next year’s event, where we will get together again and celebrate our 2010-2011 successes. Alain Saad

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).

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSJUNE 2010 ISSUE 69

CONSOLIDATED SHIPPING SERVICES І RSA LOGISTICS І SCLG І CHARTERHOUSE PARTNERSHIP

An ITP Business PublicationLicensed by Dubai Media City

IN THE FAST LANE Can the express logistics market return to former glory in the coming year?

READY FOR LIFT OFF What to expect from the launch of cargo operations at Dubai World Central

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SCATA SUCCESSWinners revealed at the Middle East’s ultimate celebration of logistics excellence

tics Middle East, PO Box 500024, Dubai, UAE or email: [email protected] p

INTERVIEW: CONSOLIDATED SHIPPING SERVICES

19www.arabiansupplychain.com | JUNE 2010

18 JUNE 2010 | www.arabiansupplychain.com

COMPANY PROFILE: CONSOLIDATED SHIPPING SERVICES

COMPANY PROFILE: CONSOLIDATED SHIPPING SERVICES

was the confidence in our people, and the confidence in our beliefs that has brought us to where we are today.”He remains adamant about sharing the success of CSS with his employees. Whether it’s the company’s bi-monthly publication, Lighthouse, where employees receive official recognition for their work, or the sponsored badminton and cricket tournaments, all have been well received. As an employee welfare measure, the company also serves up a free daily lunch to the entire workforce. Immediate advantages aside, Kala believes that implementing such incentives will consequently reduce merchandise loss in his warehouses, as employees no longer bring lunch pails to work. In talking about CSS’s economic outlook, the executive is very positive, and while 2009 was “not as bad as the other guys”, he says 2010 holds even more promise. But given the current global economic state, is the company really undergoing expansion?

Kala thinks that now is the time to act, and one such venture is a recent partnership with Peters & May, a specialist in yacht transportation throughout the world. Given the current financial climate, he believes this is one shipping sector that is experiencing consistent growth. In such a niche market with high-end clientele, the markups tend to be quite favorable. “We recognise the need to partner with a firm that has received global recognition in boat transportation,” says Kala. “We both share the same unmatched professionalism that has made us recognised leaders in our specialised fields.”The sentiments are shared by Gerald Price, managing director of Peters & May, who signed the contract with CSS. “Due to the increased volume of business being

Passionately PROFITABLECelebrating its 15th anniversary of operations this year, Consolidated Shipping Services (CSS) has emerged unscathed from recent market turmoil, explains its outspoken chairman and founder T.S. Kaladharan.

Marketspeak

ith humble beginnings in a small South Indian village, T.S. Kaladharan now sits atop a conglomerate considered to be a regional powerhouse in the logistics industry. Lounging in his Jebel Ali office - plush with white leather couches and state-of-the-art monitors - Kaladharan beams when talking about the success of Consolidated Shipping Services (CSS). “We have maintained a steady growth since our inception,” he begins with a sense of pride.

Launched in 1995, with just a handful of employees and a 1200 square foot office, CSS has since grown into a company of more than 750 employees, spread over 20 offices around the world. As the chairman and founder, Kaladharan began his career in Bahrain, going to work as an office assistant for DHL. After more than ten years of service with the courier firm, working in sectors such as cargo distribution and air freight, he set his sights on Dubai, eager to utilise his contacts and expertise.Known affectionately by his peers as ‘Kala’, he’s since made quite a respected name for himself within the freight forwarding community.In choosing the most suitable place to launch CSS, Kala was drawn to Dubai for a variety of reasons, actively becoming part of the late 90’s boom. Kala says that he saw what Dubai envisioned itself becoming and considered it to be great place to operate his business. “It was quite a simple decision really,” he says. “Its tax free, the government remains very supportive of commerce, and its location makes it a transit hub to several growing markets.”

Admittedly, while the Dubai market has become somewhat ‘stagnant’ in the past year, Kala says other regional markets are undergoing healthy expansion. “We have experienced very consistent growth within India, Saudi Arabia, Bahrain and Abu Dhabi,” he states.When talking to Kala, his sense of optimism is almost infectious. After all, this is a man that has grown his company of five employees to more than 750 in a little under 15 years, all the while attributing his success to the people that were brought on board, more so than himself. “I believe in my team and management. Nobody in this world has ever succeeded without a belief and team effort. These two attributes provide an ethos for success. It

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“We have experienced very consistent growth within India, Saudi Arabia, Bahrain and Abu Dhabi”

Three cheers for Mr KalaDear Editor, I would like to thank you for the article on Mr Kala from Consolidated Shipping Services (CSS) last month. It was an insightful look into a man that I have developed much respect for. I can attest to the fact that he works very hard at keeping CSS on top, while also treating each of his employees like family. Th e 15th anniversary celebrations in Dubai were an obvious testament to that. Th erefore, I am confi dent that as long as Mr Kala remains at the top of CSS, the company will continue to prosper long into the future. I wish him and everyone else at Consolidated Shipping Services much success for years to come. Prathap Karunakaran

P.O. Box 43030 Dubai, UAETel: +971 4 359 3030

Fax: +971 4 359 3040

Website: http://www.clarionshipping.com

Clarion Shipping is a global Ocean and Air freight forwarder,

a multimodal Transportation and Logistics Services provider

head quartered in Dubai, UAE. Clarion strives to be a global

organization in the world of logistics by providing value add-

ed integrated logistics solutions. Clarion caters to customers

in need of a local logistics service partner with global reach

providing professional, yet personalized services. We are a

ONE-STOP-SHOP for all your logistics requirements.

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OFFICES IN: UAE, OMAN, SAUDI ARABIA, KUWAIT, BAHRAIN, QATAR, INDIA, HONG KONG – CHINA,

THAILAND, MALAYSIA, INDONESIA, USA, LEBANON, KENYA, TANZANIA, UGANDA, RWANDA, BURUNDI, DJIBOUTI, JUBA, D.R.CONGO, NIGERIA, CAMEROON, GHANA.

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• Clarion Express Courier Services

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Email: [email protected]

7www.arabiansupplychain.com | JULY 2010

NEWS UPDATE

7% of food storage fails hygiene standards in Dubai

recent inspection campaign conducted by the Food Control Section of Dubai Municipality has revealed that 7% of the total foodstuff warehouses visited in the emirate were not complying with offi cial hygienic requirements.

The campaign was conducted to support the Food Control Department’s objective to ensure the health and safety of food consumed by the public. Inspections were carried out from the beginning of the summer months to test the quality of food traded in Dubai, before it reaches the end consumer.

Sultan Al Tahir, head of Dubai Municipality’s Product Control Section, said the campaign covered 257 warehouses in total, including storage centres for dry, chilled and frozen food items throughout the emirate. “The inspections, which resulted in fi nes being issued to 144 establishments, stressed our message that warehouses need to adhere to approved hygiene requirements by the municipality,” he explained.

Tahir also noted that despite the fi nes, most warehouses received a good assessment during the campaign. “We found 18 warehouses that received the medium-to-weak assessment marks and were not found to be complying with existing hygiene requirements,” he stressed. “They were instructed to comply with the requirements and modify their status.”

Common violations in those institutions were the accumulation of storage, often out-dated and expired, as well as a lack of proper ventilation systems. The team also checked that refrigeration and freezing equipment were working effi ciently and continuously, while ensuring the availability of alternative equipments in case of breakdowns. “We tried to ensure that the refrigeration units were working at a temperature of 40c or less and the freezing units were kept at a temperature of -180c or less, and in the case of dry food the temperature was kept at 210c or less and that there is no indication to the melting of the frozen food,” he said. “We also made sure that the food retained its natural properties.”

In addition, emphasis was placed to identify areas for storage in the warehouses, as they were evaluated according to the size of work. A

AInspection campaign notes non-compliance to hygienic requirements for food product warehousing

NEWS UPDATE

database of stores was also being made available to the Food Control Section on a continuous basis, which will help in locating stores in the future. Tahir added that temperature control is the best way to reduce the risk of microbes and preventing it from destroying foods during storage. “You must store the food in temperatures that are suitable for them, whether they are refrigerated, frozen or dry food,” he concluded.

“A very high degree of cleanliness and adherence to statutory standards is important for storage of goods. Food products need warehousing facilities that protect against physical, chemical, and microbial contamination. Posters related to food safety should prominently be displayed in strategic locations within the warehouse.”

DR RAJIV ASERKAR, S.P. JAIN CENTRE OF MANAGEMENT

“It could be argued that the only constant in logistics has been change. As companies have striven to control cost, improve performance and increase their market competitiveness, they have evolved their supply chain practices to help deliver their objectives. Clearly such changes have major implications for cost-effective food warehousing.”

ALEXANDER BORG, REGIONAL DIRECTOR, CILT

“The research conducted by Dubai Municipality should be applauded and will have immediate and direct benefi ts for the logistics industry. The fi ndings have highlighted a number of interesting points for those conducting warehouse operations in the emirates. For those with lower standards, its time to raise quality levels.”

WARREN JACOB, CEO OF TRANSWORLD LOGISTICS


NEWS UPDATE

enable us to not only lessen our carbon footprint, but also bring a more effi cient fl eet of bikes into function within our Lebanese operations,” he added.

Last year, chief executive offi cer Fadi Ghandour outlined plans for Aramex to become the fi rst carbon-neutral logistics company in the world. Among

Gulf Polytex has confi rmed plansto locate its regional manufacturingoperations at the Majaal logistics complex in Bahrain. The company, which was formed through foreign direct investment, intends to manufacture a broad spectrum of sun shading systems and awnings at Majaal. “It’s a great honour to support the government’s Vision 2030 and facilitate foreign direct investment in Bahrain, which will surely lead to local job creation and increased prosperity for the nation,” explained Amin Al Arrayed, board member of Majaal.

GAC has been contracted by Air Products USA to handle helium deliveries from Qatar to the UAE. Ravindu Rodrigo, GAC Qatar’s commercial manager, believes the agreement will mark the start of a relationship with Air Products that could lead to opportunities for mutually benefi cial business. “Air Products and GAC make a good match,” he said. “Both are truly global, put a premium on quality and invest in the best people to work for them. We hope that this contract will be just the start of a long and profi table relationship.”

Agility has launched a logistics hub in Shanghai as part of a joint venture with Abu Dhabi state-linked chemicals fi rm Borouge. The 66,000m2 complex, thought to be one of the biggest of its kind in China, is poised to process up to 600,000 tonnes of polyolefi ns annually for export to the Asian market. “The petrochemicals industry has entered a period of change with production in the Middle East expected to more than double by 2015,” stated Philip Browitt, chairman of the Agility’s specialty chemicals arm.

Panalpina has celebrated the start of operations at its

450,000 square feet multi-modal transit and logistics hub in Dubai Logistics City.

The new facility consists of 30,000 square feet offi ce space, a 120,000 square feet multi-purpose logistics operating area and a 150,000 square feet lay down area.

The facility will be Tapa A certifi ed and has 23 gates, including a mega door, 10 dock levelers, air cargo pallet roller beds and 45 feet ceiling height.

“This facility represents a milestone in our Middle East expansion strategy,” said Claus Schmidt, Panalpina managing director of the Arabian Belt area. “It will allow us to truly increase our service offerings

Panalpina is the latest logistics company to start operations at Dubai Logistics City

Aramex has purchased a fl eet of hybrid motorbikes for its courier team in Lebanon

A new range of bikes have been introduced to Aramex operations

in Lebanon, incorporating the latest innovation in hybrid technology. The vehicles will be utilised by the logistics company’s couriers across all stations in the country.

The move is part of Aramex’s continued efforts to reduce carbon emissions, while incorporating various techniques and measures that lessen the impact of operations on the natural environment.

“At Aramex, environmental sustainability has always been at the core of our corporate ethos,” said Raji Hattar, Aramex chief sustainability offi cer.

“This is clearly refl ected in our operational practices, which involve utilising the latest technology to boost our environmental effi ciency. Given that emissions represent a signifi cant environmental impact, the hybrid bikes will

Panalpina opens new DLC warehouse

Aramex introduces hybrid bikes in Lebanon

WAREHOUSE

Global company is welcoming customers to 450,000 square feet multi-modal transit and logistics hub

in supply chain management by providing a seamless integration of international air, ocean and trucking services with our logistics and order fulfi lment services.”

At present, four companies have already started operations at Dubai Logistics City, including EPS, RSA Logistics, Kuehne & Nagel and Calipar Integrated Services.

TRANSPORT

NEWS IN BRIEF

his targets were a 50% reduction in emissions per shipment and a 20% reduction in fuel use. The company also aimed to have 2% of its revenue from green services by that date. “Being in the transport industry, which is one of the biggest polluters on earth, it is not an issue we can ignore,” he said.


Saudia warehouse damaged by blazeA warehouse facility operated by Saudi Arabia Airlines was

damaged by a large-scale fi re in northern Jeddah last month.

The blaze was controlled by a team of 13 civil defence teams within four hours, despite the impact of windy conditions.

“The fi re had started inside a warehouse to the north of King Abdulaziz International Airport in Jeddah, which was operated by Saudi Arabian Airlines,” explained Captain Abdullah Al-Amiri, CivilDefence spokesperson.

“The blaze began in the afternoon and quickly spread in the warehouse that measured 18,000m2,” he added.

The facility contained a range of spare parts for the national carrier. “Saudi Arabian Airlines will make every effort not to be affected by this accident,”

WAREHOUSE

responded Abdullah Al-Ajhar, assistant director general of public relations for Saudi Arabian Airlines. “The spare parts used for the aircraft under service and new aircraft have

not at all been affected by the fi re because they were stored at a safe place.”

An investigation into the incident has since been launched by the airline.

NEWS UDPATE

A variety of spare parts were stored by Saudi Arabian Airlines at the Jeddah facility

Tamkeen has confi rmed plans to train 200 Bahrainis in supply chain management, culminating in CIPS certifi cation for trainees. The US$1.9 million project, which will run over four years, is part of Tamkeen’s efforts to identify skills gaps and provide new career opportunities for Bahrainis. “With the recent opening of the Khalifa bin Salman Port and the Kingdom’s ambitious plans to develop its industrial and retail sectors, supply chain management will be present successful career opportunities,” said Amal Kooheji, senior manager of human capital development department at Tamkeen.

NEWS IN BRIEF


NEWS UPDATE

Middle East from various factories around the world will now fl ow through HHL’s healthcare distribution centre in Dubai Logistics City.

The facility, which is dedicated to pharmaceutical and biotechnology products and medical devices, includes

Shell Markets Middle East (SMME) has appointed Transworld Logistics to provide implants at its two terminals in Jebel Ali Free Zone and manage all imports and export activities. Transworld’s transportation division has also approved for SMME trailer operations within the UAE. “We are excited to have secured this very prestigious account and have created a unit within us as Team Shell, which will be the face of Transworld to the business units of Shell,” explained Warren Jacob, CEO of Transworld Logistics.

Aramex has expanded its Middle East logistics partnership with the United Nations Children’s Fund (UNICEF). The company will now offer a free-of-charge service for all outbound domestic and global consignments from UNICEF’s Abu Dhabi, Riyadh and Dubai offi ces. “The extension of our collaboration with UNICEF supports the belief that Aramex can accomplish a lot more through closer and sustained engagement,” stated Hussein Hachem, Aramex chief executive offi cer for Middle East and Africa.

Ehrhardt + Partner Solutions (EPS) has implemented its LFS400 warehouse management system at a 22,000m2 warehouse in Bahrain, operated by Emke Group, the operator of LuLu Hypermarkets. “After a successful rollout in Dubai and Abu Dhabi, the EMKE Group has continued to set the pace for change in logistics with its Bahrain warehouse, which is connected to the central machine in Abu Dhabi, giving the company a total storage space of 200,000m2 with only one warehouse management system,” commented Hermann Ehrhardt, managing director of EPS.

Agility has secured a fi ve-year contract with Khafji Joint

Operations (KJO) in Saudi Arabia, valued at a potential US$17 million.

Under the agreement, the logistics company will provide a range of on-site warehousing and operations management services, including the receiving and handling of material. It will also overlook the opening, inspecting, labelling, storing and transporting of materials to different units within the KJO operation. In addition, Agility has been handed responsibility for the housekeeping of yards and warehouses, documentation and inventory assistance, and administrative support services.

“Agility has successfully managed several contracts in the oil and gas sector over the

Offi cials from Agility and Khafji Joint Operations fi nalise their KSA logistics contract

Hellmann Healthcare Logistics (HHL) hasbeen selected by

global pharmaceutical fi rm Actavis to manage its supply chain operations in the United Arab Emirates.

Under the deal, all Actavis direct shipments going to the

Agility awarded $17m Saudi contract

Hellmann Healthcare Logistics is attracting pharmaceutical customers in the UAE

Hellmann selected for Actavis supply chain

3PL

Logistics company secures fi ve-year contract to provide on-site warehousing and operations management

3PL

NEWS IN BRIEF

a combination of both 15-250c and 2-80c chambers.

“It is vital to go through a rigorous selection process, bearing in mind the quality led nature of the pharmaceutical industry. Hellmann stood out by showing its commitment to our sector through top quality systems and processes. The world-class pharma facility at Dubai Logistics City will not only benefi t Actavis, but also set new standards for pharma 3PL in the Middle East in general,” commented Eddy Scholten, Actavis operations manager for the Middle East.

“We are pleased to be working with HHL in this region and confi dent that with its help, Actavis will be able to provide a more effi cient and seamless cool chain for its distributors in the Middle East, most importantly, with a high degree of product quality and compliance,” he added.

past years. This new contract with Khafji Joint Operations has demonstrated their confi dence in our capabilities and will help in strengthening our relationship with them”, stated Engineer Dakheel AI-Dakheel, director of business

development department at Agility. “This contract will also allow Khafji Joint Operations to concentrate on its core competency of oil exploration without having to invest time or efforts into reliable storage or transportation issues.”


ulf Agency Company (GAC) hosted a celebration in Jordan last month to mark its 25th anniversary of operations in the country. A number of offi cials from the logistics and shipping company were present at the Grand Hyatt Amman Hotel to mark the occasion,

including Björn Engblom (chairman of GAC Group), Captain Lars Säfverström (GAC Group president), Rudain Kawar (CEO of GAC Jordan) and Ghassoub Kawar (managing director of GAC Jordan).

“Being part of the GAC Group provides GAC Jordan with access to a global network of connections with over 300 offi ces and more than 9000 staff worldwide,” guests were told by Engblom. “We are very proud of the accomplishments GAC Jordan has made over the last 25 years and its commitment to providing its customers with a recognised world standard of quality services.”

GGAC Jordan was founded in 1985 as a partnership between GAC

Group and local partner, Kawar Group. With two offi ces in the Kingdom, strategically located in Amman and Aqaba, GAC covers all cargo destinations within Jordan and neighbouring countries and was recently ranked the Kingdom’s leading shipping agency for RoRo ships and cruise ships, based on the total number of calls and volumes handled.

“Over the last 25 years, GAC Jordan has gained a reputable standing in the shipping market, especially in the RoRo market and cruise ships area,” said Rudain Kawar. “As the exclusive shipping agent in Jordan for Eukor Car Carriers, we are proud to be number one in the Jordanian market in the RoRo sector. It is thanks to the support of our customers, partners and staff members that we have sealed our position in the market as a leader in shipping and logistics services.”

GAC Jordan celebrates 25thanniversary of operations

NEWS UPDATE

NEWS UPDATE


JULY 2010 | www.arabiansupplychain.com14

EDITOR’S CHOICES

SPOT POLL

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ONLINE INTERVIEWSamer Hajjar, country manager at AramexAramex country manager Samer Hajjar was interviewed after the logistics fi rm took home a couple of trophies at the SCATAs 2010.

PHOTO SPECIALSupply Chain and Transport Awards 2010Re-visit the biggest highlights from the recent Supply Chain and Transport Awards (SCATA) 2010 with our exclusive photo special.

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Bahrain’s General Organisation of Sea Ports (GOP) has signed a logistics agreement with Germany to develop mutual co-operation and enhance bilateral relations between the two countries. Th e Memorandum

of Understanding (MoU) was signed by GOP chairman Shaikh Daij bin Salman Al Khalifa and the deputy

mayor of Nuremberg City, Dr Roland Fleck. As part of the agreement, both Germany and Bahrain will develop

relations providing support for logistics companies to gain access to the Middle East and Germany markets,

as well as Europe. In addition, both countries will support the development of cooperation between logistics

organisations and associations with regard to infrastructure, technology and science.

“Th e agreement is a key milestone in bolstering exchange of business between Bahrain and Germany,

leading us towards establishing stronger logistics engagements with the European market,” commented Al

Khalifa. “It signifi es a strategic step towards promoting the Kingdom’s logistics and maritime credentials and

strengthening the delivery of international best practices in logistics management. With the world gradually

emerging from recession, the agreement comes at an opportune time consolidating Bahrain’s position as an

ideal regional base and gateway from which German and international businesses will be able to access the

trillion dollar, priority target markets of the Gulf.”

Bahrain and Germany form logistics alliance

COVER STORY


locally unrivaled, as the emirate is eager for more available options in the mixed-use, light industrial sector.

“We wouldn’t touch a market without research, demand analysis, case studies. You want to be sensible, look at everything with an open mind. Al Markaz comes at the right time. And is in alignment with Abu Dhabi’s

strategic aspirations as envisaged in Plan Abu Dhabi 2030,” adds Al Nowais.

“Strong trade and transport connections encourage Al Markaz’s end-users to expand their geographical focus and tap into the massive potential of the Gulf market. Th is includes industry, which currently has an insuffi cient

supply of multi-faceted and full- fl edged real estate initiatives such as Al Markaz.”

Th e master plan outlines an integrated mixed-use development with premium workforce accommodation, light industrial facilities, start-up units, and larger land parcels zoned for warehousing and storage. Workforce accommodation is available to tenants of the development, or to external companies needing accommodation for staff . Th e project off ers several unique advantages to investors and end-users.

“It will be ideal for start-ups, or small or large enterprises. Our tenants will have the ability to upgrade to larger units over time, without relocating, as the project will be adaptable to the needs of investors. Th e fl exibility aff orded diff erentiates this project from most,” says Al Nowais.

Indeed, when he was researching case studies of similar projects, Al Nowais looked for mixed-use developments that failed, analysing why such ventures didn’t work out. Two common themes were prevalent: First,

s the fi rst employee of the Abu Dhabi-based Waha Land, chief operating offi cer Hazem A. Al Nowais, says he is proud to see how far the

company has progressed . Coming on board in October 2007, his early roles included building a team, establishing market credibility, and digging deep into market research and analysis. “Waha Land started as an idea, and today is a reality,” he says. “To see it come to life is amazing.”

With the full support of the Abu Dhabi government behind it, Waha Land’s fi rst venture will be developing a prime six square kilometre plot of land earmarked as a mixed-use development. Th e project, Al Markaz, is an ambitious attempt at providing much-needed warehousing and light industrial space to the Abu Dhabi market. Al Nowais says the proposed fl exible multi-use design, as well as scope of the project, is ground breaking for the emirate and comes just at the right time.

“Th e market demand for warehouses stores and labour camps far outstrips the supply, ensuring great value in building major multi-faceted projects such as Al Markaz,” says Al Nowais

Providing a comprehensive work and living environment with modern infrastructure that addresses the needs of the industrial sector, Al Markaz will be a fi rst of its kind in Abu Dhabi. Strategically located just 25km from the emirate, the development will be adjacent to the proposed union freight railway, allowing for direct access to the city and its ports, emirates and the rest of the GCC. Upon completetion, the development will be

A

“Market demand for warehouses

stores and labour camps far outstrips supply”

SUPPLIED DEMANDThe large-scale warehouse project launched by Waha Land to overcome storage limitations in the Abu Dhabi market.

COVER STORY



COVER STORY


industrial projects is good for us. Demand is there.” Being that this is a fi rst-of-its-kind project, surely there have been some holdups regarding zoning, approval and regulation, the proverbial red tape that all developers must work through? Al Nowais says it has not been a hindrance and thinks it actually works quite the opposite. “What might slow you down today, will save you time tomorrow,” he reasons.

Al Nowais says as a developer, he welcomes regulation and considers Abu Dhabi’s Urban Planning Council as a “breath of fresh air”’ to the local real estate market. He says the council is easily accessible, and remains open to meeting with developers to discuss available options or solutions.

“I won’t hesitate to say that they’ve quite literally been a savior to the Abu Dhabi real estate market.”

As a public company operating largely in a private sector, Al Nowais says this has placed Waha Land fi rmly on the map, and has come to positively aff ect the bottom line.

“In this market, it’s a trust issue. A public company is more transparent in operations than a private company, and this has s e r v e d

plans were simply too rigid, not allowing for expansion (or contraction) of facilities without relocation. Second, projects lacked accessibility to established transport networks, often creating bottleneck eff ects. “We worked backwards,” says Al Nowais. “Our starting point was studying the failures of others. We let infrastructure govern our master plan. Once you conquer your biggest problem, everything else becomes easy.”

Designed in four phases, each taking 18-24 months to complete, ground has offi cially been broken on the initial Phase I. According to Al Nowais, the fact that work has commenced is proving to be a selling point at recent trade shows and exhibitions. “Believe it or not, this is a major contributor to our success. Th e fact ground is broken and progress is being made. Our expectations have been completely exceeded. To give you an idea, in 2009’s CityScape Abu Dhabi exhibition, it took us fi ve days to accomplish our goals. Th is year we accomplished them in three,” says a beaming Al Nowais.

From the sounds of it, this project is one of the few to not just survive the economic slowdown, but one that arguably benefi ts under such conditions. “In 2009, we were still on the drawing board,” says Al Nowais. “So in those terms we were lucky. In 2010 we commenced sales and construction, and market conditions have worked in our favour. Th e lack of

Total Site Area – 6,000,000m²Warehouses & Storage – 1,580,000m²Light Industrial – 500,000m²Small Industrial – 180,000m²Residential – 28,000 resident capacity

AL MARKAZ STATISTICS us well. Being listed we gain credibility and confi dence,” he explains.

As for additional upcoming projects, Waha Land is looking into other government sanctioned projects, such as UAE national housing, schools and hospitals. However right now the focus remains on squarely on Al Markaz, as Al Nowais say he is not interested in becoming one of the many failed case studies he reviewed. “Th ere is no chance that I will allow that to happen, the project has too much potential for that,” he argues.

Phase I of Al Markaz is

scheduled to open by 2011


TEMPERATURE CONTROLLED STORAGE



ts a well known fact that severe hot or cold weather can damage products contained within storage units. Th e Middle East, marked by its high temperatures and humidity during most of the year, necessitates that products be stored in an environment that can guarantee quality and maintain product integrity.

As a result, demand for temperature controlled storage remains high as most modern warehouses are equipped with cooling devices. Additionally, as warehousing remains a critical component within the supply chain, it would be asinine to utilise temperature controlled transportation, as is now common, without opting for a temperature controlled storage element as well.

“Th e product group for which temperature controlled storage is an absolute necessity would be food and perishables. Apart from this, most consumer goods like cosmetics, creams, pharmaceutical and health care products, fashion goods and accessories, electronics, furniture, leather goods and even antiques are stored in temperature controlled environments to maintain the integrity of the product,” explains Umer Shams Arakkal, general manager of Xvise Innovative Logistics in the Middle East.

“It is not merely the decision of the product owners, but in the case of certain product categories, the regulatory authorities also lay down guidelines or legislation to ensure compliance to temperature limits. Th ese regulations need to be strictly adhered to.”

Th e sensitive nature of products to external elements like high temperatures, humidity, rain, dust and pests make temperature controlled storage a highly desirable and necessary medium of storing products – a storage platform that would guarantee the quality and integrity of the product until end destination. Sometimes, even limited public access and security are considered as factors when opting for temperature controlled storage. For instance, in the case of products that are fragile in nature, high on antique value or sometimes in the case of sensitive musical instruments.

“Currently the region off ers a vast range of temperature controlled warehouses for customers. Th is was not the case in the 80s and 90s where choice was limited to a handful of providers,” continues Arakkal. “Today’s choice ranges from global players to strong regional and local players who have established benchmarks as specialist in temperature controlled warehousing. Hence customers can avail of a variety of providers based on their individual and customised needs.”

Th e cost of setup and operation of a temperature controlled warehouse is a signifi cant amount higher than an ambient warehouse. However the return on investment is faster, states Arakkal, and due to high demand for temperature controlled warehousing, guaranteed as well.

In order to quicken the return on interest (ROI), companies can be innovative when it comes to the choice of technology, storage concepts, staff selection and other factors. “Once the temperature controlled warehouse is set up, all it requires is periodic maintenance and monitoring. Return on investment is faster compared to ambient warehousing,” states Arakkal.

So, what are the challenges of temperature controlled storage? “Essentially the customer is in business with a service provider that has temperature controlled storage in order to maintain the integrity of the product. Having said this, it is the responsibility of the service provider to ensure that the contractual obligations and expectations of customers are met in terms of handling the product, storage and distribution of product to the market at the appropriate temperature requirements without any break in the system along the chain,” says Arakkal.

“Th ere are plenty of gadgets available in the market to monitor this practice. Backup systems are vital to a temperature controlled environment in case of emergencies. Of equal importance, the staff handling the products need to be trained in order to ensure their own safety and provide a quality service to the client. Another area of concern is the cost of operation for the provider, as he should embrace specifi c technologies and processes that would ensure quality operations at minimal cost and breakdowns. Th is would touch upon the areas of racking, IT and business processes, staff training and so on.”

Th ere are many international, regional and local companies off ering temperature controlled warehousing in the Middle East. Th e distinction between these companies mainly depend on the scope and quality of services aff orded to clients. Most international companies focus on the end-to-end supply chain that includes freight forwarding, transportation, ground handling, documentation, warehousing and deliveries to the marketplace. Customer contracts with these providers are typically global in nature. On the other hand, regional operators and local operators may focus only on their core strengths without taking too many risks. “An interesting point to note here is that year-on-year, companies are improving their benchmarks and operating standards in order to meet customer expectations, provide better value for money for customers and to ensure compliance with local regulations and law enforcement bodies,” says Arakkal.

Th e demand for temperature controlled storage has been on the increase and yet there is still a shortage of ‘quality’ supply in the Middle East region, he argues. “Perhaps demand has indeed softened due to the current market conditions, however we need to assume this is a temporary situation and the market will rebound. Cost of quality temperature controlled storage will most certainly rise, but price escalation will be at a slower pace and not compared to the scenarios of yester-years.”

It seems customers will have their choice due to increased competition and operators will have to diff erentiate themselves in order to attract and retain business. “Th e retail market is booming in the Middle East and most of the retail customers require temperature controlled warehousing in order to maintain the quality and integrity of the product. Hence even if price is a factor, the important aspect for the operators is to ensure quality service and professional retail expertise to clients,” ends Arakkal.

I

With growing demand for temperature controlled storage in the Middle East, what opportunities does the sector present for warehousing and transportation companies?



AL MADINA LOGISTICS - SANJEEVE THAVARAJAH , SENIOR MANAGER, SUPPLY CHAIN DIVISON

What type of temperature-controlled storage is offered by your company?We provide our customers with a combination of freezer chambers, chiller chambers, air-conditioned, ambient and ambient storage.

What products need temperature control?Typical examples include fast moving consumer goods (FMCG), as well as white and brown goods.

What are the challenges involved with temperature-controlled storage?Within cold chain management, our challenge remains operating a low energy facility that is compliant with LEED.

How strong is demand for temperature-controlled storage in the Middle East?Demand is very good and we record an all-time peak in the summer months.

Do you believe there is a suffi cient supply of logistics companies that service this region, as well as market? I think we have quite a broad range of logistics providers here operating on conventional methods of storage and handling system. We need to see more taking the initiative to move on to technology-driven applications for storage and handling systems to be able to operate at a low cost, thus passing this savings on to our clients.

What makes your company different to others that provide this service?For starters, our facility is designed based on LEED and BREAM guidelines. This is one of its kind in the Sultanate of Oman, as well as the region. The benefi t to having a low energy consuming facility is the ability to operate at the lowest possible costs, thus enabling us to price our rates competitively. Besides the low energy factor, we also comply strictly with cold chain management guidelines. This assures the client that product quality is maintained and product deterioration is also minimised.

GLOBAL SHIPPING & LOGISTICS (GSL) - KHALID AL SHIRAWAI, EXECUTIVE DIRECTOR

What type of temperature-controlled storage is offered by your company? Global Shipping & Logistics (GSL) is one of the few service providers to offer storage from -25ºC to 25ºC within a single location. Additionally, we offer temperature-controlled and cold storage from the same location.

What products need temperature control?Customers who are either manufacturers or distributors of international and local brands are our primary customers. We are focused on chocolates, snack foods, drinks, jams and preserves in the temperature controlled area. In the cold store, we are focused on ice creams, frozen meats, ready-to-cook food, poultry and seafood.

What are the challenges involved with temperature-controlled storage? The biggest challenge is maintaining the right temperature at all times from off-loading the cargo till storage and shipping. As the UAE has extreme temperatures, there is a challenge in not allowing the outside temperature to have an effect on the goods during off-loading and shipping. At GSL, we have answered

this requirement by having dock levellers and shelters that are infl atable and cover the rear of the container during off-loading and shipping of goods. Implementation of a SCADA (Supervisory Control and Data Acquisition) system to monitor and control the chiller and plant is a defi nite advantage in maintaining the temperature and humidity requirements, as well as offering our customers a comfort level in knowing that their items are handled and stored correctly.

How strong is demand for temperature- controlled storage in the Middle East?Temperature-controlled storage is a major requirement in the Middle East. The challenge is to fi nd the right partner who will do it. This is based specifi cally on the challenges mentioned above.

Do you believe there is a suffi cient supply of logistics companies that service this region, as well as market? There are enough companies offering temperature controlled storage from a capacity perspective. However, the quality and process systems with most of them are not up to international standards. There is defi nitely scope for improvement for many service providers in adopting international systems and infrastructure. The addition of stringent quality processes is also a necessary tool to ensure compliance.

What makes your company different to others that provide this service?GSL has invested in best-in-class infrastructure and systems, while our processes are tailor-made for the temperature controlled and frozen business. We differentiate ourselves from other service providers by offering services customised to both the specifi c client and item handling/storage requirements. Starting from the system integration to the storage and handling of the goods, GSL provides complete control and visibility to customers. We are proud to say that we have never lost a customer due to service issues.



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AL-FUTTAIM LOGISTICS - TOM NAUWELAERTS, HEAD OF LOGISTICS

What type of temperature-controlled storage is offered by your company?Al-Futtaim Logistics offers a self-contained cold storage facility in Jebel Ali Free Zone, with the capacity to run at temperatures of 22ºC throughout the year. In addition, our new parts distribution centre for Toyota is temperature

GAC - PHIL SHOWERING, GENERAL MANAGER OF LOGISTICS SERVICES, DUBAI

What type of temperature-controlled storage is offered by your company?Understanding the transportation, handling and storage challenges of perishables, maintaining their temperature integrity is a top priority at GAC. Our fl agship distribution centre GAC Logistics Park at Jebel Ali Free Zone houses a dedicated cold chain facility which utilises sophisticated technology for cold chain maintenance and automation for product handling. GAC’s road transportation network, supported by its fl eet of vehicles featuring temperature-controlled and dual compartments refrigeration, also ensures a seamless transportation for perishable items.

What products need temperature control?GAC houses a number of perishable commodities within our distribution centre network, which span a range of particular temperature sensitive bands from pharmaceuticals, where we have vaccines and healthcare products that must not be exposed to temperatures above 8°C, to traditional frozen operations that are maintained at -30°C to ensure the freshness of the product.

controlled. Working in temperature- controlled environments is much more convenient for the involved staff and we have seen huge increases of productivity, especially during the warmer part of the year.

What products need temperature control?Within our facilities, we are holding a large variety of products. Amongst others, we are holding consumer goods from the beauty sector, together with electronic hardware containing components that are sensitive to high-levels of humidity and changes in temperature. We also store hanging garments for clothing retailers within Al-Futtaim.

What are the challenges involved with temperature-controlled storage?High energy costs remain an important consideration, and to keep these costs to a minimum it is important to ensure that the facility has very good insulation and protection against leakage. Of course, back-up systems are also critical in the case of a potential electrical supply failure. When appropriate, the use of VNA (very narrow aisle) or mobile racking systems will ensure optimum storage density, thus minimising storage and energy costs per pallet or unit.

What are the challenges involved with temperature-controlled storage?Chilled and frozen food must be managed, stored and transported within specifi c temperature ranges to ensure that optimum product viability or freshness is preserved and that safe and high quality product is delivered to the customers. Climate plays a crucial role in the Middle East, placing unique demands on temperature-sensitive goods and calling for special training and equipment. Chilled food particularly, are more vulnerable to spoilage through temperature variations, resulting in a much shorter shelf life. For example it is very important to our FMCG customers that there products do not rise above 18ºC in general, as this is when the likes of commodities such as perfumes or cosmetics can start to deteriorate, and will subsequently shorten the effective life of the product.

How strong is the demand for temperature- controlled storage in the Middle East?Demand for temperature-controlled storage – especially quality ones – is strong, as the importance of seamless links along the supply chain is heightened in the Middle East, due to the harsh climate. This is driven by regional consumption of the commodities as well as re-distribution to nearby markets.

How strong is demand for temperature- controlled storage in the Middle East?Clearly with the climate in this region, it is critical to many businesses. There are many product sectors that would not require temperature controlled facilities in many areas of the world, but that do require it in this region due to the severe fl uctuations in temperature and humidity.

Do you believe there is a suffi cient supply of logistics companies that service this region, as well as market? Cool storage is reasonably abundant, however there are very few companies in the 3PL market offering storage for frozen goods, predominantly food, and therefore companies whose core business is in the frozen sector have a limited choice of service providers.

What makes your company different to others that provide this service?What distinguishes us from the competition is that we can offer cool storage in different types of warehousing, from basic infrastructure to very high-end state of the art infrastructure, like our part distribution centre in Dubai Industrial Park. We have the resources to ensure the satisfaction of customers.

Do you believe there is a suffi cient supply of logistics companies that service this region, as well as market? Within Dubai, there are a suffi cient supply of logistics companies, with all the global players present, who are particularly strong and well represented throughout the GCC region.

What makes your company different to others that provide this service?With 20 years of experience, GAC is best known for the quality of the service we provide and the knowledge of the local market. Our success can be attributed to our long-standing customer partnerships, which we’ve nurtured with great care. As we’re in it for the long term, we value our cus tome r s ’ loyalty and p r o v i d e tailor-made s o lu t i on s to their requests.



TRANSWORLD LOGISTICS - WARREN JACOB, CHIEF EXECUTIVE OFFICER

What type of temperature-controlled storage is offered by your company?We offer -16ºC storage facilities, where we store juice concentrates. We have two chambers for this, in addition to offering cool temperature storage from 20ºC - 23ºC degrees.

What products need temperature control?We handle storage for a world leader in fl avors and fragrances, which stores its juice concentrates with us in the freezer rooms. Additionally, the cool temperature rooms have a mix of cargo, ranging from bottled juices to high value electronics, all of which require temperature controlled storage.

What are the specifi c challenges involved with temperature-controlled storage?Maintaining temperatures of 20ºC - 23ºC degrees is straight forward but, when you have to maintain -16ºC degrees it calls for a lot of expertise in handling cargo inside the freezer rooms, as the temperature at no point of time can fall below an acceptable level.

How strong is demand for temperature-controlled storage in the Middle East?There is a good demand for frozen cargo as there are not too many third party warehouses who offer this. Also, cool temperatures always yield better margins and allow us to demonstrate a high level of service capabilities to our clients.

Do you believe there is a suffi cient supply of logistics companies that service this region, as well as market? We are certain that there is ample amount of space available in the region today. However, logistics is not about just brick and mortar but a lot of other elements that help to complete the supply chain.

What makes your company different to the others that provide this service?At Transworld, we pride ourselves in being a customer friendly company while at the same time offering truly world class services. Our information systems offer customers real time updates on stock fl uctuations, allowing them to generate a wealth of MIS information, which can be used for better planning and order replenishment.

STORALL - GHASSAN ABUGHAZALEH, GENERAL MANAGER

What type of temperature-controlled storage is offered by your company?Storall already has a climate-controlled self storage facility that is used by many of our corporate clients. Most recently, we converted part of our main 3PL warehouse into a climate controlled racked area managed by our WMS.

What products need temperature control?Products can include high-end IT related electronics, dry foodstuff, tobacco products and miscellaneous FMCG.

What are the specifi c challenges involved with temperature controlled storage?Allocating the appropriate funding for setting it up and controlling the running costs at a level that enables a healthy ROI.

How strong is demand for temperature-controlled storage in the Middle East?It was strong enough for us to naturally progress into this type of storage – hence our new climate-controlled racked area expansion. Traditionally Saudi Arabia was the biggest market for this type of storage, purely because their population demanded the volumes in terms of foodstuffs alone. The problem in places like that was quality of the actual facility. A lot of cooling and by extension, energy was wasted due to semi-professional facilities built in the region. Kuwait is another strong contender primarily because some vendors based there had major supply contracts to western military agencies. Over the past 15 years, Dubai has attracted more and more regional business because of the general professionalism that was offered here, both in facility construction as well as experienced management. With the population in Dubai standing at 8.2 million which is up from 4.7 million a mere 10 years ago, the demand speaks for itself.

Do you believe there is a suffi cient supply of logistics companies that service this region, as well as market? In light of the present market conditions, there is currently ample supply of this type of storage. During the boom years 2001-2005/6 there was an extraordinary volume of warehouses built – almost all with the option to upgrade them into climate controlled units. Unfortunately many of them are now standing empty due to the economic downturn and therefore, yes, there is now an oversupply of space in the market. One major factor of change is that logistics companies have become more cautious in their expansion plans, in that they want customers already in hand before committing to more leased space.



ithin the United Arab Emirates, it takes a lot to impress. Bigger, better, and bolder are terms that remain entrenched in the daily vernacular. Even still, Al-

Futtaim Motors’ Parts Distribution Centre (PDC) is a behemoth of a building. Perhaps even more impressive is the fact that it is entirely climate-controlled. Walking into the warehouse, one is taken back, not by the summer heat radiating out, but rather the sheer size and organisation of such a fl uent operation. Systematically arranged shelves,

Wpristine aisles, dozens of forklifts buzzing around with smiling uniformed employees scanning the inbound and outbound goods, it is apparent that this is one operation that not only means business, but maintains the capability to stay cool under pressure.

Th e facility is located in the heart of Dubai Investment Park, around 20km inland from Jebel Ali Port and will be opposite the Dubai World Central development. Given the location, just outside the city, traffi c remains relatively light with several major thoroughfares within minutes. As Al-Futtaim Motors brings in eight to ten

containers daily, mostly coming from Japan and Australia, the location allows for ease in transit to and from Jebel Ali Free Zone, and across the road, for what will eventually be the world’s largest airport, Al Maktoum International.

Today, Al-Futtaim Motors’s PDC is one of Toyota’s largest and remains a 24-hour non-stop operation. With over two dozen electric forklifts, and a dozen or so electric trolleys operating seamlessly throughout, one gets the sense that this enclosed city never sleeps. At a total build cost of US$45 million, the site consists of two

COOLER CLIMATE



Aside from its immediate necessity of temperature-controlled storage in Dubai, Al-Futtaim Motors says an increase in worker productivity and morale have proved invaluable.

Concrete used: 14,148m³Bags of cement: 7903Steel reinforcement: 437km Cabling: 591kmPiping: 34kmSprinkler heads: 6800

BUILDING & EQUIPMENT STATISTICSseperate warehouses, which provide purpose-built storage and distribution facilities with enclosed storage space of more than 45,000m2, nestled on a 135,000m2 plot of land. “Th is is the best warehouse in the world,” states a prideful supervisor.

Toyota itself was integral during the design phase of the warehouse, as the lean-based Toyota Production System (TPS) has been implemented with a great deal of success. When walking through the immense facility, the Toyota-inspired themes of safety, productivity, quality and effi ciency resonate throughout.

Operationally, employees are central to the streamlined processes and strive to be error-free and risk-free, day in and day out.

Toyota imposes rules by which its PDCs are required to follow, as the Japanese auto-maker likes to see its distribution centres alleviate all unnecessary risk. For instance, restrictions are placed on the shelving height, as each row is limited to four levels, though their remains enough room for six to seven levels. With a self-supporting roof structure, removing the need for pillars, space remains abundant from top to bottom. “If infrastructure isn’t there, then neither is the effi ciency, or business for that matter,” explains Tom Nauwelaerts, head of logistics, Al-Futtaim Logistics.

28


JULY 2010 | www.arabiansupplychain.com

“Mentality has changed from 20 or 30 years ago. It used to be ‘why do we need that changing room for our employees’, or ‘why do we need a fully operational industrial kitchen and canteen?’ You know, it’s the 10m2 of space here, or 15m2 over there that companies were reluctant to provide to employees. We fi nd that by off ering such amenities, employee morale improves, and consequently boosts productivity. You’ll fi nd that the most successful of companies don’t skimp on such in-house measures.”

And when it comes to a controlled- temperature environment, research shows there is a direct correlation to worker productivity, especially those working in harsher climates.

“You won’t often fi nd upper-management walking through a 45°C warehouse in the middle of the day. It just doesn’t happen,”

says Nauwelaerts. He adds, however, that when the temperature is controlled and comfortable, morale amongst warehouse employees improves, and superiors tend to make more frequent appearances. Both provide a boost to productivity.

Consider also the benefi t of having stock enclosed in a controlled environment. In Al-Futtaim Motors’s old Jebel Ali Free Zone facility, it was not uncommon to see parts such as chassis and tyres outside, seemingly exposed to the extreme elements. No longer is this the case, as everything is now contained under one roof and protected from the unforgiving climate.

Aren’t the energy bills enormous, as it can’t be cheap to air condition such a massive facility? According to Nauwelaerts, while there is an added expense, it can be off set by technologies such as cold water pumps (that maintain a more stable temperature), as well as improved insulation techniques. Additionally, to keep costs in check, on the night shifts

only about half of the available lighting is utilised, thereby

saving on power. During the day, natural sunlight coming through translucent roof panels illuminate the entire

warehouse facility, and no lights are needed.With a daily focus on effi ciency

and productivity, employees are responsible for sending out or receiving

product lines. Consider that a normal day will see 5000-8000 lines going in, and 5000-8000 lines going out. Everything from axles to spark plugs is scanned, organised and immediately stored or shipped. Managers receive daily line reports from employee scanners, and can easily recognise who is moving the most goods in the quickest amount of time. For those whose numbers are unsatisfactory, Toyota has set up a ‘Dojo’ adjacent to the warehouse, where workers’ scanning/sorting techniques are examined and critiqued with the hope of improving line operations.

“Resources such as this make our facility so highly effi cient, as our employees remain the foundation to our success.” concludes Nauwelaerts.

dds, hed

o nt e a

enefi t of in a controlled

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The Al-Futtaim Motors PDC is positioned in relation to the key areas of UAE; 120km from Abu Dhabi in the south, 120km from Al Ain in the east and 120km from Ras Al Khaimah in the north

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WAREHOUSE FIRE PREVENTION

o the untrained eye, the latest in fi re protection technology is something straight out of a science fi ction novel. Take the latest highly-sensitive,

laser-based VESDA detector for example. Th is aspirating smoke detection system can intelligently detect a warehouse fi re at the very earliest stage, triggering four programmable alarms. Each alarm has a threshold set by the warehouse operator enabling a measured staged response to any threat – from a suspicious investigation to the highest-level involving the activation of sprinklers and emergency services. Unlike other many of its counterparts, this device is planted at ground level, and not the ceiling – very handy for a warehouse whose ceilings are so high that by the time smoke reaches there, the fi re has spread out of control.

VESDA is just one example of the many new fi re detection and protection technologies available to warehouse operators desperate to protect their wares from damage. With the increase in warehouse fi res being a continued cause of consternation for the Middle East, could these technologically advanced systems provide the solution to the problem?

Craig Nixon, business development manager at Tyco Fire and Security UAE, believes so. As a leading fi re protection and detection company in the region, and agent for VESDA, Tyco is

T

Playing with

Can the most up-to-date fi re protection systems really guard warehouse operators from the threat of fi re?

well-versed in protecting large buildings such as warehouses from fi re. “Each company has to look at the risks presented in its warehouse to select the most appropriate system,” advises Nixon. “Th ere is not one fi x-it-all system for everything.” As warehouses, particularly in the Middle East, grow larger in size and volume, many of the previously used fi re detection systems are now rendered largely ineff ective. “Some of the new advances in detection technologies have been really targeted to bigger facilities with higher and larger open areas,” Nixon agrees. “As the height of these facilities increase, detection becomes more diffi cult and normal point type detection will struggle to detect.”

Of course, it inevitably helps if fi re protection needs are considered right at the beginning of the warehouse design process. Sadly however, it is much more often an afterthought once the warehouse has been built and the mechanical and electrical work has been done. “It is always easier to put systems in during the construction phase rather than do the work retrospectively,” emphasises Nixon. “Warehouse operators need to look at weight loading, water demands and those aspects which will potentially aff ect the structure itself during the design stage. When looking at racking systems within the storage facility for example, you need to take your fi re systems into consideration during the design process of the warehouse.”

It is not only active fi re protection systems which should feature highly on the action list at the design stage. Passive fi re protection solutions can help minimise the damage of a warehouse fi re, particularly in places like industrial zones where many buildings are located in close vicinity of each other.

Passive fi re protection means taking structural considerations to hand when designing a fi re-proof warehouse. Th is can be the key to reducing the odds of a fi re occurring and to minimise damage through containment. “Th ere is defi nitely not enough attention placed on the importance of passive fi re protection,” argues Mark Lavender, sales and marketing director for Promat Fire Protection. “A lot of attention is focused on active systems like alarms and fi re extinguishers but an integrated approach with both active and passive systems working together to protect an asset would be more successful.”

Global company Promat specialises in passive fi re protection solutions for the structure of buildings like warehouses, including fi re compartments and barriers, sprays and paints, fi restopping, fi re rated partitions and ceilings as well as the protection of structural steelwork. As warehouses usually contain large undivided areas, the use of such methods, particularly fi re walls or barriers, is extremely eff ective in avoiding the spread of fi re, heat and smoke.




Furthermore, the real benefi t of passive fi re protection lies in maintaining the structure of building in the event of fi re and preventing collapse. “Maintaining compartmentation can stop the spreading of a fi re from warehouse to warehouse, as we have typically witnessed in heavy built-up locations like industrial zones,” says Lavender, pointing to the case of Dubai Industrial City which fell victim to one of the biggest fi res to hit the region two years ago. Starting as an explosion in a fi reworks warehouse, the fi re spiralled out of control and engulfed more than 80 neighbouring warehouses in its wake.

With scenarios like this, it is not surprising that fi re protection specialists like Lavender and Nixon often feel frustrated with companies in the region who complain about the cost of fi re protection systems. “Afterall, how expensive is the total loss of your business?” Lavender points out. “Th e cost of passive fi re protection systems are minimal in the overall construction cost and are only a minor expenses in comparison.“ Nixon also agrees that whilst some warehouse operators in the region clearly do take fi re protection very seriously, others can be reluctant to invest the capital required to get the best system for their

facility. “Some companies simply don’t want to spend money on fi re protection and will do the minimum required.” he says.

Despite their concerns however, both companies remain optimistic that the Middle East is slowly cottoning on to the benefi ts of fi re protection systems in line with its global neighbours. Recent fi gures indicate that the global market for active fi re protection is currently worth around US$5 billion annually and set to grow by around 5% in the next couple

of years. But is the technology enough to convince the region’s warehouse operators?

As operator of several warehouses in the region, Bernard Dias, operations manager for RHS Logistics, believes that most forward looking companies do consider fi re protection as an investment and not a cost. “Th e cost of not

having the right type of investment in fi re protection systems could be disastrous for the business,” he admits. Th e company uses a highly sophisticated laser system for both fi re detection and prevention to protect its warehouses. Additionally, an in-rack sprinkler system and an overall sprinkler system in the shipping marshalling zone are on hand, should they be deemed necessary.

Recent fi gures indicate that the global market for active fi re protection is currently worth around US$5 billion annually and set to grow by around 5% in the next couple of years

“There is defi nitely not

enough attention placed on the importance of passive fi re protection”

Whilst Dias believes that automatic fi re suppression systems with standby fi re protection stations are imperative, other fi re safety measures can be equally important without relying on the latest technology for implementation. In many instances, for example, a fi re can be discovered by a worker prior to the activation of a fi re detection system, and this can be invaluable in providing early warning to the other building occupants and to the local and public emergency services. Having all staff trained on fi re prevention procedures and use of basic fi re fi ghting equipment is relatively cost-free and essential as part of a complete and balanced fi re protection plan.

Guidelines from bodies such as the US-headquartered National Fire Protection Association (NFPA) also advocate a balanced approach to fi re protection which does not solely rely upon technology. Kathleen Almand, executive director at the NFPA’s Fire Protection Research Foundation, places the involvement of emergency response services at the top of the list. “Engaging the local emergency response team early in the design process of the fi re protection system will ensure that it is designed with their capabilities in mind,” she says. Regular training of teams in the operation of the fi re protection systems during a fi re event is also essential.



Many of the new systems are based on lessons learnt from real warehouse fi re investigations and the shortcomings of earlier systems, meaning better performance and cost-savings in the long-term for warehouses. “Fire protection is a means to mitigate the risk associated with the loss of warehouse contents,” Almand advises “Th ere is a unique design solution for each warehouse – a competent fi re engineer can provide the optimum solution for every company.”

At Al-Futtaim Logistics, all warehouses are being equipped with fi re protection systems such as fi re hose reels, fi re extinguishers, early suppression fast response (ESFR) sprinkler systems, fi re detection and alarm systems. Refusing to compromise on health, safety

and environmental standards, the company invests substantial amounts into ensuring that it’s warehouses are fi re proof to the maximum extent possible. “We have reduced our risks by implementing the appropriate fi re prevention and protection control measures and also the facilities covered by the insurance,” says Tom Nauwelaerts, head of logistics at Al-Futtaim Logistics. “Th e implications of a fi re would be very serious for all involved parties, both fi nancially and operationally.”

As well as ensuring the highest level of active and passive fi re fi ghting equipment, the company prioritises periodical maintenance and checking, employee awareness and the applying of strict proactive fi re safety measures. “If the commercial goods stored in our warehouses become unavailable for sales, then we are causing a lot of consequential losses to our customers,” explains Nauwelaerts. “Getting those goods on the shelf again on short notice would be a very expensive supply operation for our customers, and nothing can make up for the poor resulting customer experience.”

Nauwelaerts believes that there have been lot of improvements with regards to the fi re protection systems and regulations in the region over the previous years.

“Th e authorities like EHS Department in JAFZA (Dubai) and the municipalities are providing guidelines and recommendations to enhance the quality of fi re protection and fi re safety on a regular basis,” he says. “Other major eff orts are also being done on fi re prevention measures and making people aware of the potential risks that are around.”

As well as Dubai, other authorities have shown their willingness to clamp down on warehouse fi re safety regulation. Neighbouring emirate of Abu Dhabi, for example, is implementing an International Fire Code, based on the International Code Council standards in the United States, requiring all new buildings and extensions to have emergency exits, working alarms, smoke detectors, and sprinklers systems.

With local authorities attempting to drive forward the need for adequate fi re protection in response to the recent number of warehouse fi res, companies are clearly catching up to the idea. In reality however, as many companies fi nd out to their own detriment, thinking you can get away with the most basic fi re protection is a dangerously false economy. “Are they doing it just to meet minimum requirements or to get the best system for the facilities that they are protecting?” questions Tyco’s Nixon. “When you have warehouse facilities with hundreds of millions of dollars of goods in there, to spend a modest sum to protect that facility clearly makes good business sense.” Warehouse operators have suffered from damage worth millions of dollars from recent fi res in the Middle East

Th e Foundation conducts research in the major NFPA standards areas, including sprinkler protection, fi re alarm and signalling, hazardous materials protection, electrical safety, and fi re fi ghter health and safety. “Th e major premise is that as today’s warehouses are getting larger in volume and contain more plastic based contents, it is increasingly diffi cult for emergency responders to play their traditional role in fi nal extinguishment of fi re,” explains Almand. “Typical fi re protection systems (both suppression and detection) used for warehouses in the past needs to be reconsidered as contents and sizes change.”

Indeed, the new fi re protection technologies and approaches developed in the last ten years are clearly a better fi t for today’s warehouse.

COMPANY PROFILE


COMPANY PROFILE

Great ExpectationsCapitalising on the growth of Qatar’s logistics industry, Gulf Warehousing Company (GWC) has emerged as one of the country’s biggest 3PLs, states CEO Ranjeev Menon.

35

COMPANY PROFILE

www.arabiansupplychain.com | JULY 2010

“I think 2009 will go down in the records as a year of great challenge and change,” states Menon. “Ultimately, the global economic crisis had a major impact on economic developments in virtually all business sectors. It was however one of our best years, as we achieved tremendous growth. Despite tough market competitions, GWC enjoyed

the support of current and new customers to reinforce our claim to be Qatar’s largest logistics solution provider. Our results refl ect the strength of our business model and our ability to post gains even in the most challenging times. While maintaining the focus on expanding our client base, we have strengthened our

off ering by introducing new services like Hazmat Logistics Solutions, and added greater service to our clients. We are proud to say that today, we are standing strong.”

Menon agrees the New Doha International Airport, set to handle a higher volume of air cargo, will have a lasting impact on growth.

triving to become not just a dominant logistics provider within Qatar, but the dominant logistics provider remains the goal for

Gulf Warehousing Company (GWC). With services that include contract logistics, freight and transport management, international moving services, and records management solutions, GWC continues to undergo domestic expansion.

“We are still in the early stages of the growth,” says Ranjeev Menon, chief executive offi cer of Gulf Warehousing Company. “Our goal is to be the dominant logistics provider in Qatar. We continue to develop plans to stay ahead of competition and remain the number one logistics provider for all business sectors.”

When asked what diff erentiates GWC from competitors, Menon is quick to credit the people, as well as policies, that have been put into place. Of course, he says, the ability to deliver custom solutions to each customer’s problems, effi ciently and eff ectively, doesn’t hurt either.

“Our employees and our systems make us who we are. Our employees are amongst the best in the industry and are constantly trained to take GWC to the next level and they are assisted by our systems and structured documented procedures,” adds Menon. “Additionally, a successful business will make each of its clients feel special by understanding and addressing their unique requirements and quickly solving problems. GWC’s focus on its customer, on delivering a personalised experience, allows us to stand apart from our competitors.”

Launched in 2005, GWC commenced operations with a 3100m2 warehouse, and has expanded much more since. At the moment, GWC operates fi ve diff erent warehouses from its head offi ce in Doha, Qatar, while continuing to grow into one of the leading logistics providers in the emirate. Menon hopes that the completion of Logistic Village Qatar (LVQ) at the end of this year will provide GWC with a suitable platform for such growth. Th e new facility will have one million square metres of dedicated and multi-purpose warehousing space, car storage, PDI area, a container yard and repair depot.

But surely, considering market conditions in the past 18-24 months, GWC has made some unexpected cutbacks and possibly scrapped some plans for expansion, right?

S

“Our goal is to become

the dominant logistics service

provider in Qatar”

2004 Gulf Warehousing incorporated as a Qatari shareholding company in Doha Stock Market 2004 Registered offi ce begins operation in Al Khaleej Building, Doha, Qatar 2005 First warehouse in Street 17, industrial area measuring 3100m² started operations 2005 Construction of Street 15, industrial area warehouse takes place 2006 Street 15 warehouse and transport commences operations in third quarter 2006 Awarded the contract to manage the Ashghal warehouse 2006 Acquired land in Messaid, Ras Laffan and Logistic Village Qatar 2006 Construction of Ras Laffan warehouse 2007 Awarded contract to manage the Qatar Port warehouse 2007 Achieved the ISO 22000: 2005 certifi cation 2008 Completion of Ras Laffan warehouse, with operations commencing in the same year 2008 Commence open yard operations in Messaid 2009 Awarded contract to manage the Centre Tender Committee Warehouse 2009 Achieved the OHSAS 18001: 2007 certifi cation 2009 Opened a 4000m² warehouse for hazardous material 2009 Construction of Messaid warehouse 2010 Construction starts on the large-scale Logistic Village Qatar development

GWC Operations Timeline


COMPANY PROFILE

of containers handled at the Port of Doha to be up to 427,811 TEUs, while at the New Port they will have reached 106,953 TEUs,” continues Menon.

When considering the challenges faced, Menon acknowledges that promoting the 3PL model to the Qatari market is one of the major obstacles he is working to overcome. “Th ird party logistics services are still in an initial development in Qatar. Th e introduction of these services has proved benefi cial to the state’s business sector. Th e main challenges faced are relating this new concept to the customers,” says Menon. “Th e concept of 3PL is still at a development stage and we have been promoting the use of these services to all business sectors. We believe that it is more cost-effi cient for business sectors to outsource their logistics

Ranjeev Menon, CEO of Gulf Warehousing Company, states that promoting the 3PL concept to the Qatari market remains one of the major obstacles he is working to overcome

Located in the Doha Industrial area, GWC’s fl agship warehouse site, ST15 Industrial Estate, consists of a purpose built 25,000m2 facility comprising 46,000 pallet locations. The warehouse is now open and offers ambient high rise storage and frozen / temperature controlled storage to its 3PL customers. The company also has facilities at Ras Laffan Industrial Estate, HAZMAT Warehouse in Ras Laffan, Meddaid Open Yard and Logistics Village Street 54 New Industrial Estate.

GWC’s Qatari Facilities

According to projections, air cargo will grow at 8.2% per annum on average, based on performance by national carrier Qatar Airways. Additionally, road haulage is projected to grow by 7.3%, just slightly ahead of the growth of the economy. “Th e logistics market for Qatar is strong and we foresee signifi cant growth in the industry. Th e reason being that the country’s marine cargo volumes are set to increase signifi cantly over the next few years,” says Menon

“Consider that cargo volumes handled in Qatar’s Port of Doha, as well as the upcoming New Port of Doha, are projected to grow very strongly. Th e volumes handled over the next fi ve years will increase an annual average rate above GDP (expected to be 8.3%) and close to foreign trade (expected to be 12.1%). By 2014 we expect the number

requirements. Th is development will take time, however, there is a huge potential for the concept of 3PL in Qatar. In line with this, we are working together with the customers to explain the benefi ts of using a third party logistics companies.”

In such a new market, a company such as GWC will have to build its brand from the inside out, as the customers that have never used 3PL services will indeed take time to come around. So what does Menon feel is the diff erentiating factor in GWC’s services, which will inevitably sway such an untapped client base? “Th ere is an obsession with perfection within the company, ensuring that our timelines are continually met,” he concludes. “Great care of service is provided to customers at all times to guarantee that everyone is satisfi ed.”

Road haulage fi gures within Qatar are projected to grow by 7.3%, thereby outpacing expected economic growth


FLEET MANAGEMENT

MONITORING MOTORISTS

Can fl eet management systems help to reduce the number of road fatalities in the Middle East?

29

FLEET MANAGEMENT


river safety has become a major talking point for fl eet managers in this region, especially with worrying increases in the number of road accidents within the Middle East. According to governmental statistics, approximately 1000 road deaths were reported in the

United Arab Emirates last year, which has increased the pressure on transportation companies to increase their safety standards.

Technology could play an important role in this turnaround, with Fleet Management Systems (FMS) often claiming to reduce the number of accidents on the road by issuing reports for customers whenever one of their drivers has performed a dangerous or erratic manoeuvre. In addition, these systems also have the potential to reduce fuel and maintenance costs, lower insurance premiums and extend the lifespan of a vehicle. However, despite these marketable benefi ts, it seems the response towards FMS has been relatively lukewarm in the Middle East.

“After starting operations in the United Arab Emirates a few years ago, we noticed that companies liked the concept of fl eet management systems, but were sluggish when it came to commitment,” explains Naim Hadi, general manager of Trakker Middle East, a pioneer of FMS technology in South Africa, Pakistan, Europe, Australia and Brazil. “However, it takes time to educate the market. In the United States and Europe, this technology has existed for over 30 years now and it’s had a presence in markets such as South Africa for 25 years.”

Another local supplier, Fleet Management Systems International (FMSi), has fi rsthand experience in this regional reluctance, after establishing its Middle Eastern offi ce over a decade ago in Abu Dhabi. “In the past ten years, the popularity of fl eet technology has been limited. It’s not been fully implemented by target markets, such as government agencies and insurance companies,” states Rani Ghazzawi, general manager of FMSi.

Since the education process in FMS’s regional promotion is ongoing, the local suppliers are keeping optimistic that change is just around the corner, with the Middle East market having the potential to eventually match its counterparts around the world. In more developed markets such as Europe and North America, for example, companies that implement fl eet technology can fi nancially benefi t from provided discounts and incentives from their respective insurance companies, potentially off setting any costs incurred.

33

D

Fleet Management Systems (FMS) can positively impact maintenance costs, lower insurance premiums and extend the lifespan of a company’s fl eet in the Middle East

“Education and awareness is essential in developing the regional market for FMS. Companies need to understand the diff erence between tracking systems and fl eet management systems. Th e latter is capable of reporting on how the vehicles are actually be used,” says Ghazzawi, who claims FMSi can potentially save its customers between 15%-35% in operational costs. “Th is is a substantial amount for logistics companies, where competition is intense and margins are low.”

Th ese savings are fuelled by the ability of fl eet management systems to monitor the habits of drivers. For example, an employee who drives erratically and brakes harshly can increase the maintenance costs for brakes and tyres. In addition, inconsistent acceleration not only aff ects the fuel consumption, but reduces the lifespan of a vehicle

too. And drivers who consistently take longer breaks than allowed by their employees are causing delivery delays, which result in customer dissatisfaction.

However, passing the buck to customers because of their limited product knowledge is overlooking another important infl uencer in the success of fl eet management systems. According to Ghazzawi, the lack of professionalism from certain quarters in the industry has also aff ected the market demand.

“Some competitors in the Middle East are operating on a temporary basis, which hurts the market. Vendors will arrive, open for a couple of months and then close their operations. Th ere is little reliability,” she says. “Th e reason for their failure is the vague nature of the services being off ered. Th ese companies are selling FMS alongside security systems, which means they don’t have specialist knowledge in the technology. As a result, a customer’s perception is clouded by misleading information.”

Concerns about discrepancies in the choice of suppliers seem commonplace in the fl eet technology market. Mohammed Aljaibaji, Middle East business development manager, Fleet Management Solutions, believes customers should take action measures to ensure their suppliers are legitimate. A bit of due dilligence, he says can go a long way to ensure you’ve made the right decision.

“In this region, once companies learn about this product and decide it’s a worthwhile investment, they should research the market and pick a supplier that understands their needs,” he says. “Training is essential too, because some customers have limited experience with such technology and the type of information and data that is

“We will continually modify the network

design to ensure minimum lead times

and costs”


FLEET MANAGEMENT

being provided cannot be easily absorbed by their staff . Th is renders the system very expensive and complicated.”

Although a certain amount of scepticism continues to surround this technology, the boom in infrastructure development within the Middle East means the systems cannot be ignored forever. Indeed, the intensifi cation of growth and competition in the region has helped to increase the signifi cance of FMS.

“As business growth scales up, the natural requirement for operational control also increases and hence fl eet management systems have come into focus now,” reports Ashish Dass, vice president of 3i-Infotech. “Infrastructural growth expectations are facing various challenges like constraints in the availability of inexpensive human resources, road congestion and the time-critical nature of customer service; all of these are pointing to the need for greater levels of fl eet management automation.”

Such issues are becoming commonplace, and together with the market concerns expressed by supplier, the sector could benefi t from stricter regulations to be enforced throughout the Middle East. “Th e industry is going through a dynamic phase and in fact there have been attempts to formalise industry bodies, for example, introducing fl eet management associations in the region, as they exist in the more developed markets, such as Europe and North

America,” adds Dass. “Th is could help the Middle East to reap a greater level of rewards, such as lower insurance quotes and other savings. Technology costs are also coming down thanks to the global development of the telematics sector and the expansion of GSM networks in the region.”

But its not just logistics companies that benefi t from the systems, oil and gas companies have actively embraced the technology too.

FMSi is the offi cial supplier to multi-national companies like Alkool, Shell, Figaro and Adnoc. Car rental companies are also heavily reliant on the technology as FMS helps to minimise the number of stolen cars. Th ere are many cases where people will hire a car, drive out the country, never to return again.

“FMS’s not only protect businesses from risks, but there are a large proportion of individuals in the Middle East purchasing the products,” says Dass. “Th e rising number of accidents on the roads has resulted in people

becoming more anxious about their children’s driving habits. Many fathers are installing the systems into their child’s car once they have passed their driving test to ensure that they are driving responsibly on the road and not putting themselves or others in danger. To many this may seem extreme, however, safety and protection on the roads is a growing concern in the Middle East and FMS can off er peace of mind to both businesses and families.”

“Many fathers are installing the

systems in to their child’s car once they

have passed their driving test”

The boom in infrastructure development should increase the signifi cance of FMS

C-TRACK SOLO SUPPLIER: TRAKKER MIDDLE EASTDigiCore’s fl agship product, designed as a complete solution provider for fl eet management requirements and marketed as an essential part of every modern transportation fl eet is being adopted by leading multinationals and local companies. C-track Solo is a full featured scaleable, remotely upgradeable product for haulers, logistics and supply chain management, mobile workforce management and emergency services application. C-track Solo is based on a newly developed hardware platform which utilises the GPS technology to provide vehicle positioning within 10 metres average accuracy and uses Etisalat’s GPRS/SMS network to transmit real time information, 24 hours a day, all year round.

FLEET MANAGER 200 PLUS SUPPLIER: FMSIThe FM Performer is designed to help customers manage their staff and vehicles more effectively, ensuring optimum performance and fl eet savings. By gathering objective data about how a company’s vehicles are driven and by whom, the customer can also improve driver safety and extend the life of their vehicles, whilst cutting maintenance costs.

THE ORION ADVANTAGE SUITE SUPPLIER: 3i-INFOTECHThe ORION Advantage is designed as a ready-to-deploy, single-window ERP solution package. The package comprises hardware, operating system, database and a micro-verticalized ERP application. It is designed for small and medium businesses (SMBs) to save costs, time and resources from day one, in order to deliver maximum ROI. With ORION Advantage, customers can take advantage of3i-Infotech’s alliances with various technology leaders, by enjoying a range of special rates and service terms. ORION Advantage comes with pre-installed Oracle database, an HP dual processor Xeon server usage package, and a Windows 2003 server, among other things.

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TOP 10 MIDDLE EAST AIRFREIGHT HUBS

TOP 10

While the impact of the global recession has still been apparent in the Middle East airfreight sector, the region has started to experience a healthy upswing in cargo volumes over the past year. Based on the offi cial 2009 statistics of Airports Council International (ACI), we present the latest edition of our Top 10 Airfreight Hubs in the Middle East.

Supported by the emirate’s growing reputation as a Middle Eastern superhub for cargo operations,

Dubai International Airport was able to weather the global downturn better than the majority of its counterparts around the world, handling close to 2 million tonnes of cargo in 2009. Th is marks an increase of 5.6% compared to the previous year’s fi gures. Hosting the passenger and cargo services for over 40 airlines, DXB airport is the main hub for airlines such as Emirates, FlyDubai, Palm Aviation, Royal Jet and Dubai Royal Air Wing.

DUBAI INTERNATIONAL AIRPORT

MIDDLE EAST AIRFREIGHT HUBS 2010

43



Climbing to the second position and yet another entry for the United Arab Emirates, Sharjah

International Airport has steadily continued to develop its share of the Middle East airfreight market over the years and 2009 was not an exception. Despite the challenges presented from a global recession, the airport handled 421,398 tonnes of cargo in total last year, marking a double-digit increase of 16.1% compared to the previous year.

Operated by Abu Dhabi Airports Company (ADAC), Abu Dhabi

International Airport is the second largest airport in the United Arab Emirates and one of the fastest growing in the region. A hub for Etihad Airlines, the airport is served by over 30 international and regional airlines. A total of 382,523 tonnes of cargo was handled in 2009, according to Airports Council International (ACI), which marks a healthy increase of 7.4% over the previous year.

SHARJAH INTERNATIONAL AIRPORT

ABU DHABI INTERNATIONAL AIRPORT



Operated by the department of Civil Aviation Aff airs, Bahrain International Airport is the

main gateway to the Kingdom of Bahrain. Hosting passenger and cargo traffi c from over 30 regional and international carriers, Bahrain International Airport is the main hub for airlines including Gulf Air and Bahrain Air. It is also a regional base for logistics heavyweight DHL. Th e facility, which was nudged out of the top three by Abu Dhabi International Airport, handled 342,724 tonnes of cargo in 2009, a decrease of 6.9% over the previous year.

BAHRAIN INTERNATIONAL AIRPORT

King Abdulaziz International Airport is the gateway to Jeddah,

Saudi Arabia and one of largest airports in the region. Hosting regional and international passenger and cargo services for over 30 airlines, the airport is the major hub for Saudi Arabian Airlines. Between January and October 2009, the airport handled 173,630 tonnes of cargo, which marks a decrease of 4.6% over the same period in 2008.

KING ABDULAZIZ INTERNATIONAL AIRPORT

Operated by Fraport Saudi Arabia Ltd, King Khalid

International Airport is the international gateway to Riyadh and marks Saudi Arabia’s second entry in the top 10. Hosting passenger and cargo services for over 30 airlines, the airport is a major hub for Saudi Arabian Airlines, Nas Air and Sama. It handled 168,687 tonnes of cargo in total between January and October 2009, marking a double-digital decrease of 11.2% compared to the same period in 2008.

KING KHALID INTERNATIONAL AIRPORT


TOP 10 MIDDLE EAST WAREHOUSING HUBS

Kuwait International Airport is located in Farwiniyah and is the main gateway to Kuwait

City. Hosting regional and international passenger and cargo services for over 25 airlines, the airport is a hub for Kuwait Airways, Jazeera Airways, Wataniya Airways and LoadAir. A total of 197,984 cargo tonnes was handled at the airport in 2009, a solid increase of 9.9% compared to the previous year.

KUWAIT INTERNATIONAL AIRPORT

Queen Alia International Airport is Jordan’s largest

airport. It is the home hub of Royal Jordanian Airlines, the oneworld aligned national fl ag carrier, as well as being a major destination for Jazeera Airways, Gulf Air and Jordan Aviation. Cargo volumes were down in 2009 at the airport, with 82,183 tonnes being handled last year – a decrease of 5.8% compared to fi gures in 2008.

QUEEN ALIA INTERNATIONAL AIRPORT



Lebanon makes its fi rst and only appearance in the top 10 at

number nine. Th e country’s fl agship Rafi c Hariri International Airport in Beirut is Lebanon’s biggest airport facility, which saw a 5.8% increase in cargo throughput last year, reaching a total of 72,589 tonnes in total.

King Fahd International Airport in Dammam has

slipped down the list of top Middle Eastern airfreight hubs this year, with 55,627 tonnes of cargo being handled between January and October 2009. Although the fi gure is respectable, it also marks a considerable decrease of 32.1% compared to the same period in 2008.

BEIRUT-RAFIC HARIRI INTERNATIONAL AIRPORT

KING FAHD INTERNATIONAL AIRPORT

48 July 2010 | www.arabiansupplychain.com

ASK THE EXPERT

FACTORS PUSHING COMPANIES TO OUTSOURCE THEIR SUPPLY CHAINAlthough the business environment has been challenging in recent times, such conditions create opportunities too. Th e extraordinary levels of growth in the region over the past few years has led to many companies developing their own logistics departments and purchasing their own equipment. Given the current environment, such companies are seeking opportunities to increase effi ciencies, reduce costs and focus on their core business. Th erefore outsourcing to a professional 3PL provides such clients the potential to achieve improved effi ciencies, cost reductions and the opportunity to get back to the basics. In some cases the shift from in-house logistics to the services of a 3PL provides an opportunity to raise capital through the sale of their assets directly associated with logistics. I believe the industry will, in the long-term, benefi t as more organisations outsource services.

KEY OPPORTUNITIES IN THIS RESILIENT MIDDLE EAST MARKETAs we have indicated, the opportunities for professional logistics companies and 3PLs are considerable, in a region which is still relatively buoyant economically and where the logistics industry is still rapidly developing. Th ere are still many companies that can benefi t from outsourcing the management of their supply chain and logistical requirements to a capable 3PL which can subsequently deliver cost benefi ts, improved service levels and improved effi ciencies, all of which are currently more welcome than ever. Th erefore, the fact remains the same - an effi cient supply chain is to the benefi t of everyone, from companies themselves to the end user consumer.

THE CHALLENGE OF SELECTING A CAPABLE 3PL PARTNERAs in any business relationship, it’s important to assess what you want your 3PL provider to bring that will benefi t your business and allow you to feel comfortable with your decision. Th e most crucial factor to satisfy is whether a 3PL has the capability to deliver your specifi c requirements. Obviously requirements will diff er from company to company, thus the criteria for assessment will diff er. In addition to having the relevant capabilities, we believe that one of the key traits of a successful 3PL company is based on their ability to eff ectively communicate. At Momentum Logistics, the team recognises that whilst we are in the logistics industry, we are also in the communication business. In order to communicate eff ectively a 3PL needs to have robust processes backed up by an eff ective information technology system and most importantly the right people. Th ese factors should be considered when selecting a service provider.

A FOCUS ON AGGRESSIVE GROWTH OVER THE COMING YEARSTo capture a larger share of this market, the focus of Momentum Logistics is growth, aggressive growth. Momentum’s strategy is built around the core business divisions of transportation, freight forwarding, logistics cities, container repair and contract logistics. Th ese activities will be expanded and enhanced as evidenced in recent months through the tie up with Avalon, the opening of freight offi ces in Dubai, Abu Dhabi, Iraq, and the launch of a third container repair depot in Sharjah. Th is year will also see Momentum open offi ces in Saudi Arabia, Qatar and Kuwait. During the course of the next fi ve years, our company will continue to aggressively develop its geographical footprint throughout the Middle East, Europe, US and Africa.

BARRIERS THAT CLIENTS FACE IN TERMS OF SUPPLY CHAIN EFFIFIENCY One of the main factors in the UAE is restrictions on trucks using the roads, where they are only allowed to use certain roads at certain times or, in some cases, not at all. Th is signifi cantly reduces the utilisation of resources; drivers and equipment and thus drives up the cost of distribution. With regards to the GCC, border crossings can still be time-consuming and at times frustrating, although improvements are being made, there remains scope for more improvement. Unfortunately, the benefi ts an eff ective supply chain brings is not always fully appreciated. However, many

companies have started to realise the full complexity of their supply chains and exactly what improvements an eff ective supply chain can deliver. Th e importance of properly managing these supply

chains is becoming more evident as are the cost benefi ts that can be derived from an effi cient supply chain.

QUESTION: How can outsourcing provide a win-win situation for logistics fi rms and clients in the region?

GAINING MOMENTUM

This month’s column was written by Matthew Derrick, general manager of Momentum Logistics


EMIRATES SKYCARGO FUEL PRICE INDEX

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10

MONTHLY AIR CARGO REPORT: EUROPE REGION*

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

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

Amsterdam (Netherlands) 136,318 26.5 359,829 20.5

Brussels (Belgium) 46,861 20.7 113,836 4.6

Cologne (Germany) 54,646 17.6 144,572 12.7

Frankfurt (Germany) 207,044 35.5 535,305 31.5

Istanbul (Turkey) 41,641 36.9 110,320 43.3

Leipzig (Germany) 53,414 36.3 143,767 31.8

London Heathrow (UK) 139,669 28.6 370,480 21.6

Luxembourg (Luxembourg) 62,978 12.0 164,641 8.8

Paris (France) 183,100 15.1 485,750 12.4

Vienna (Austria) 21,526 36.0 56,348 34.6

Warsaw (Poland) 5014 9.6 13,106 7.3

Zurich (Switzerland) 28,871 21.1 77,876 18.2

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) 3963 -10.3 10,903 -10.9

Addis Ababa (Ethiopia) 3591 -39.9 10,151 -39.7

Algiers (Algeria) 1857 -17.8 4434 -19.2

Antananarivo (Madagascar) 968 -3.8 2816 3.0

Cairo (Egypt) 28,271 17.4 82,777 11.9

Casablanca (Morocco) 4670 -21.9 12,578 -16.5

Dar Es Salaam (Tanzania) 1257 -11.3 3734 -13.1

Djibouti (Djibouti) 136 n/a 1777 -15.3

Harare (Zimbabwe) 1961 22.6 5205 9.1

Johannesburg (South Africa) 24,973 2.1 71,034 13.0

Libreville (Gabon) 1607 -7.7 4517 -8.9

Saint-Denis (Réunion) 2965 12.9 8427 18.0

Tunis (Tunisia) 2057 33.6 4974 21.8

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

INDUSTRY STATISTICS

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

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

INDEX100 = 53.5 US cents per US gallon

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

April

09

May

09

June

09

July

09

Aug

09

Sept

09

Oct

09

Nov

09

Dec

09

Jan

10

Feb

10

Mar

10

0

35,000

70,000

105,000

140,000

175,000

210,000

21 May373

14 May406

30April430

23 April418

4 June385


MONTHLY AIR CARGO REPORT: MIDDLE EAST REGION*



Abu Dhabi (UAE) 37,837 23.8 101,357 22.6

Amman (Jordan) 7566 15.1 20,850 12.8

Bahrain (Bahrain) 31,398 5.9 84,299 0.3

Beirut (Lebanon) 6946 10.1 18,392 9.6

Dubai (UAE) 201,589 26.5 544,750 28.1

Fujairah (UAE) 2627 (16.6) 9,010 1.4

Kuwait (Kuwait) 18,149 16.5 47,662 10.6

Muscat (Oman) 8155 69.6 22,653 64.0

Ras Al Khaimah (UAE) 281 68.3 905 57.9

Sharjah (UAE) 36,249 3.5 111,792 34.3

MONTHLY AIR CARGO REPORT: NORTH & SOUTH AMERICA*



Anchorage (USA) 191,389 55.5 531,262 40.2

Buenos Aires (Argentina) 17,953 32.5 43,095 28.2

Chicago (USA) 118,848 46.0 311,917 33.8

Los Angeles (USA) 147,926 25.2 404,967 25.2

Memphis (USA) 335,082 12.0 951,802 8.8

Mexico City (Mexico) 33,616 25.9 89,810 22.7

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

MONTHLY AIR CARGO REPORT: ASIA PACIFIC REGION*



Ahmedabad (India) 2384 32.8 6564 32.2

Bangalore (India) 6918 -47.7 37,257 -0.0

Bangkok (Thailand) 113,035 37.8 309,054 43.1

Calcutta (India) 10,169 31.7 28,198 31.8

Colombo (Sri Lanka) 15,364 33.2 40,856 31.1

Fukuoka (Japan) 22,928 10.5 60,555 9.2

Hong Kong (China) 350,262 29.4 914,145 33.7

Jakarta (Indonesia) 44,422 18.6 128,002 20.1

Kuala Lumpur (Malaysia) 62,249 33.5 162,302 28.5

Manila (Philippines) 36,562 56.6 100,514 59.4

Mumbai (India) 58,962 24.0 161,112 26.4

Osaka (Japan) 65,064 32.2 171,747 36.7

Seoul (Korea) 14,115 -8.9 38,517 -8.4

Shanghai (China) 285,684 48.8 739,940 59.0

Singapore (Singapore) 159,361 18.4 435,087 18.1

Taipei (Taiwan) 158,015 64.8 412,255 70.3

Tokyo (Japan) 196,828 41.0 515,873 41.9

INDUSTRY STATISTICS

For up-to-datefi gures, visit:

W E T E ST F O R YO UI N T E R R O L L P R OV E N S O LU T I O N S F O R SA F E ,

R E L I A B L E A N D E ASY DY N A M I C STO R AG E

Interroll Fördertechnik GmbH · Höferhof 16 · 42929 Wermelskirchen · Germany · Tel.+49 2193 2 31 27 · Fax +49 2193 2 31 [email protected] · www.interroll.com

Interroll’s international test centre in La Roche-sur-Yon, France

• 6 different life time machines on 800 sqm area

• Deep freeze room (-28°C)

• Toughest conditions tests

• Pallet tests with original customers‘ pallets

• Pallet Roller Flow test lane for any length

• Finite Element Analysis (FEA)

• Fully dedicated R&D

EN ISO 9001

Certificate N°. 71 100 I 190


FUJAIRAH BUNKER FUEL PRICE INDEX

12 Ju

ly 0

9

12 A

ug 0

9

12 S

ept 0

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ct 0

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12 N

ov 0

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eb 1

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ar 1

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12 M

ay 1

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275

350

425

500

May

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Jun

09

Jul 0

9

Aug

09

Sep

09

Oct

09

Nov

09

Dec

09

Jan

10

Feb

10

Mar

10

Apr 1

0

0

3 million

6 million

9 million

12 million

15 million

FACTS & FIGURESSea Freight Regional & International Statistics

INDUSTRY STATISTICS

BUNKER FUEL PRICE INDEX*

PORT / COUNTRY IFO380 IFO180 MGO MDO

Busan (South Korea) 466 476 710 701

Cape Town (South Korea) n/a 544 753 n/a

Fujairah (UAE) 442 454 724 n/a

Hamburg (Germanry) 430 450 663 630

Houston (USA) 416 434 n/a n/a

Istanbul (Turkey) 459 479 710 n/a

New Orleans (USA) 428 444 n/a 655

Piraeus (Greece) 441 462 669 n/a

Rio de Janeiro (Brazil) 449 467.5 704 n/a

Rotterdam (Netherlands) 422 439 656 n/a

Shanghai (China) 480 489 715 n/a

Singapore (Singapore) 435 441 441 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 June 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 TYPEAPRIL 2010 YEAR-TO-DATE

Discharged Loaded Discharged Loaded

Bulk cargo (solid) 2,165,662 508,969 6,749,980 2,318,184

Bulk cargo (liquid)* 381,882 3,843,725 1,508,121 16,337,706

General cargo 629,519 66,087 2,214,118 289,424

Containers (in tonnes) 2,466,801 1,779,548 8,899,856 6,443,013

Ro-Ro and vehicles 140,763 14,239 533,289 53,528

Livestock 8.909 n/a 46,631 n/a

TOTAL 5,793,536 6,212,568 19,951,995 25,441,855

TOTAL PORT THROUGHPUT 12,006,104 45,393,850

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 Aug447.5

12 Jan480

12 Mar459.5

12 Apr486

12 Sept435

12 Nov464.5

CONTAINERS (TEU) 2010 2009

April Year-to-Date March Year-to-Date

Discharged 214,005 786,684 191,329 667,199

Loaded 189,030 761,818 167,453 699,210

TOTAL 403,035 1,548,502 358,782 1,366,409

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.

01 02030405

1116212627282930

2223242517 18 19 2012 13 14 15

06 070809 10011 02203TRADE EVENTS


71

11 2

711111

1

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

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

18th May 2011GLOBAL LOGISTICS AND SUPPLY CHAIN MANAGEMENT SUMMIT Th e Supply Chain and Logistics Group (SCLG) has announced plans to host its fourth annual Global Logistics and Supply Chain Management Summit in May 2011. Th e Dubai-based trade association is hoping to break its record from this year’s summit, which attracted more than 200 delegates from various Middle Eastern countries, in addition to Singapore, India and the United Kingdom. A host of speakers will be confi rmed over the coming months.VENUE: Dubai, United Arab EmiratesEMAIL: [email protected] WEBSITE: www.sclgme.org

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

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

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

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

25th – 28th November 2010HANDLING EXPOMarketed as the largest annual material handling event in the Middle East, Handling Expo makes a return to Cairo International Convention Centre in November, bringing together buyers, sellers and end-users from across the region to interact and collaborate. Attendees at the four-day exhibition will fi nd the newest technologies and applications to make their operations leaner and more productive. Last year’s exhibitors included the likes of Landoll, Crown, Yale, Nissan Forklift, Interroll and Hyster.VENUE: Cairo International Convention CentreEMAIL: [email protected]: www.handlingexpo.com

June 2011SUPPLY CHAIN AND TRANSPORT AWARDS (SCATA) 2011Leading players from the Middle East logistics sector will compete in the UAE next June for the fi fth annual Supply Chain and Transport Awards (SCATA). Th e prestigious ceremony will include 16 categories in total, covering the Middle East’s logistics, air cargo and sea freight sectors. Th ese include the awards for Express Logistics Provider of the Year and 3PL Service Provider of the Year, in addition to FMCG Supply Chain of the Year.VENUE: Dubai, United Arab EmiratesEMAIL: [email protected]: www.arabiansupplychain.com/scata

1000m2

25th - 27th September 2011MATERIALS HANDLING MIDDLE EASTEstablished in 2001, Materials Handling Middle East is marketed as the leading trade exhibition and conference for the regional logistics industry. Th e fi fth edition of the show attracted around 175 industry leaders from 27 countries, who showcased their products and services to around 7000 key purchasers from 82 countries around the world. Exhibitors included the likes of SSI Schafer, FAMCO, Ehrhardt + Partner, LOC8 and Business Systems Group (BSG).VENUE: Dubai Convention & Exhibition CentreEMAIL: [email protected]: www.materials-handling-dubai.com

56 July 2010 | www.arabiansupplychain.com

FACE TO FACE

What are the primary advantages of CIPS membership in the Middle East?Membership will enhance your status as a purchasing and supply practitioner and give you the backing of a well-informed professional body. In fact, our research shows that CIPS members enjoy higher salaries than their non-member colleagues in similar roles. In addition, our structured ladder of qualifi cations means you can quickly build on your existing experience and qualifi cations to achieve a CIPS qualifi cation in purchasing and supply management.

What markets or partnerships is CIPS looking to ascertain in the coming year?I would say Abu Dhabi, Dubai, Qatar, Kuwait, Saudi Arabia and Bahrain. Th ey are attracted to the certifi cation as well as the level of transparency associated with a respected international standard. We’ve recently worked with DP World, DU, Emirates Airline, ADNOP and ENEC. Th e benefi t of partnering with such organisations is that by signing on, they are saying ‘Yes, we recognise the stringent criterion and wish to be compliant to the highest of international standards’.

The partnership with CIPS and the UN was highly publicised. What does it cover?Developing the capacity of national governments to better manage the procurement process and raise standards in supply chain management saves money and ensures the quality and timeliness of goods and services procured. It is also a precondition for the transparent and accountable use of public funds. In order to enhance its contribution to these goals, UNOPS is working with the Chartered Institute of Purchasing and Supply to support national capacity development in these fi elds. Th is will be done by providing consulting, procurement training, project management and CIPS certifi cation.

The reputation of CIPS for offering comprehensive education programmes is world-renowned. So what is next?From entry level into the profession, you might have very little educational background and you can progress through our qualifi cations all the way to degree level. From level two to level six. At the moment we’re only off ering levels three and four, which goes into advanced diploma level. You can study online, you can study face to face at Dubai University, you can go to evening classes or weekends. We want to maintain as much fl exibility as possible for our students.

Your consultative response process allows your members to express their views at the highest levels of government. How so?We lobby governments and business on our client’s behalf, so that they understand the contribution that our partners and colleagues make to corporate, national and international prosperity. We also off er study programmes that are recognised around the world and promote a code of ethics that has become the international benchmark for purchasing and supply practice. Th is all falls within our consultative response process and helps to provide greater value for our members.

Can you tell me more about the royal charter that CIPS was awarded in 1992? Royal charter means that in theory we report to the queen. Th e queen will award a public charter if she believes you are acting in the public interest. As such, CIPS is a not-for-profi t organisation with a charitable status. Obviously we’re not operating for a loss either, however we do re-invest all profi t into things like conferencing, marketing materials, developing qualifi cations, trying to work with study centres, and generally promoting the profession as a whole.

Regarding the seven membership types, is there a minimum or maximum number of applicants you will take on?Well, there are seven categories of CIPS membership, and currently there are no quotas or limits placed on applicants. If you are joining to study for a qualifi cation, you will initially be registered as a student member. Once you have successfully completed a level of study then your membership will be upgraded and the appropriate membership certifi cate will be awarded. Following student membership, comes certifi cate membership, diploma membership, associate membership, full membership and fi nally the fellow (FCIPS).

What are your expectations in terms of developing CIPS in the Middle East?

Although I am by no means a fortune teller, I think 2010 will fi nish on an

upswing in comparison to 2009. By the end of the year I would like to increase our membership in the

Middle East region, as well as see a member company be the fi rst

one to receive our gold certifi cation status. I am confi dent we will witness both events take place by the end of 2010.

THE TESTThe Chartered Institute of Procurement and Supply (CIPS) has ambitious plans to boost its presence in countries such as the UAE, Saudi Arabia and Qatar, explains general manager Rebecca Fox.

FACE TO FACE INTERVIEW

PASSING

Established for more than 25years, Middle East Shipping & Transport Company, a part of the Suhail Bahwan

Systems Company offering the full

leading project management company providing complete onshore and offshore services to leading

sizes and volumes.

the Sultanate, MEST has moved several million freight tons through the Omani ports for various projects in the last few years.

free projects in the Sohar Industrial Port area.

MEST has successfully completed the OMAN LNG(2Trains) and Qalhat LNG projects and various others in the fields of Oilfield, Chemical & Pipelines up to 700 kms.

forwarding in Oman & UAE, Global Freight Forwarding and land transport

includes specialized vehicles for heavy and over dimensional cargo.

Clearing & Forwarding and

Road Transport (Land-side Transport)

Project Cargo Management

Freight Forwarding (Air & Sea)

Dedicated Safety Team

Excellent Track Record

Land, Sea or Air, we carryyour Cargo with Utmost Care

Middle East Shipping

P.O. Box 169, Muscat - 100. Sultanate of OmanTel.: +968 24790024 Fax.: +968 24786429 Email: [email protected]

The Best in Service, Quality and Efficiency

Core Services:Freight Management and Customs BrokerageAutomotive LogisticsWarehouse and Inventory ManagementDomestic and International TransportationProject Cargo and Heavy LiftInternational Moving

P.O. Box 61450, Dubai, United Arab Emirates. Tel: +971 4 881 8288, Fax: +971 4 881 9157, e-mail: [email protected] www.al-futtaim.ae

AF Logistics SITL Show Vertical Ad3 indd 1 3/15/10 9:25:57 AM

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