logistics middle east - sept 2010

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NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS SEPTEMBER 2010 ISSUE 72 ALBA LOGISTICS І ARAMEX І EHRHARDT + PARTNER І BARLOWORLD І FAMCO І AGILITY An ITP Business Publication Licensed by Dubai Media City WELCOME RELIEF Middle East logistics firms stand united to support victims of Pakistan floods RACKING REPORT How is the racking sector coping with limitations in new warehouse launches? Andreas Mohr, chief executive officer, Jassim Transport and Stevedoring Company (JTC) KUWAIT CREDENTIALS Celebrating its 30th anniversary, Jassim Transport and Stevedoring Company (JTC) outlines its most ambitious expansion to date

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Page 1: Logistics Middle East - Sept 2010

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSSEPTEMBER 2010 ISSUE 72

ALBA LOGISTICS І ARAMEX І EHRHARDT + PARTNER І BARLOWORLD І FAMCO І AGILITY

An ITP Business PublicationLicensed by Dubai Media City

WELCOME RELIEFMiddle East logistics fi rms stand united to support victims of Pakistan fl oods

RACKING REPORTHow is the racking sector coping with limitations innew warehouse launches?

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KUWAIT CREDENTIALS Celebrating its 30th anniversary, Jassim Transport and Stevedoring

Company (JTC) outlines its most ambitious expansion to date

Page 2: Logistics Middle East - Sept 2010
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1

CONTENTS

www.arabiansupplychain.com | September 2010

CONTENTS

02 Editor’s LetterWith a series of cargo plane crashes in the region, is there a lapse in safety standards?

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

07 News Update• US government extends $25 million logistics

contract with Agility for another six months• Emirates SkyCargo partners with SNTTA• GAC transports shipment of sharks to UAE• Logistics Company Limited supports Mapei• UAE to place logistics students from the UK• TNT opens kids learning centre in Dubai• FedEx to service Sharjah Chamber members• Aramex joins forces with marriage website• DP World becomes third largest ports firm

Issue 72 September 2010

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

18 Cover StoryCelebrating its 30th anniversary of operations, what does Jassim Transport and Stevedoring Company (JTC) have planned for the future?

22 Special ReportAn overview of the warehouse racking market in the Middle East, with profi les of the region’s leading suppliers and a local case study with Q Home Décor at Dubai Investments Park.

33 Emerging Logistics MarketsTransport Intelligence updates its annual ranking of countries from the developing world in terms of their logistics potential.

38 Humanitarian LogisticsHow the fl ooding disaster in Pakistan has helped to unite the global logistics industry.

42 Preview: TOC Middle EastTh e global maritime-focused TOC conference makes its debut in the Middle East this month.

48 Ask the ExpertInfor explains how the global recession has

increased the need for a logistics risk strategy.

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

56 Face To Face InterviewChristian Gebler discusses his recent move from BITO to Ehrhardt + Partner Solutions.

22 38 56

For the latest news and stories go to

18

Page 4: Logistics Middle East - Sept 2010

2 SEPTEMBER 2010 | www.arabiansupplychain.com

EDITOR’S LETTER

2

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espite a constant eff ort to reduce the number of plane crashes around the world, it’s somewhat impossible to achieve a zero-accident

rate, as the Middle East has unfortunately learned over the past couple of months.

Shortly before publishing this issue of Logistics Middle East, we received the tragic news that a Boeing 747-400 operated by courier fi rm UPS had crashed near Emirates Road in Dubai, leading to the death of both crew members. Within minutes of the incident, news channels and online websites were bursting at the seams with real-time updates on what caused the accident. Of course, in reality, the exact details will not be known until the UAE’s General Civil Aviation Authority (GCAA) concludes its investigation, which involves a detailed look at the aircraft structure, systems, engines and fl ight controls. Th e B747’s cockpit voice recorder (CVR), which was recovered within six hours of the incident, will also provide further clues into events leading to the crash.

A similar incident was reported only a month earlier in Saudi Arabia, when a Lufthansa Cargo plane had crashed at

DKing Khaled International Airport in Riyadh. Th ankfully, on this occasion, the MD-11’s pilots were rushed to hospital and survived the ordeal. Th e fi rst results of a joint investigation by offi cials from Saudi Arabia, Germany and the United States have indicated that a bad landing was responsible, with a fi re being started after pilots struck the runway and destroyed the aircraft’s undercarriage.

So what can be done to avoid such instances in the airfreight sector? Th ere’s countless measures being taken around the world to place a limit on potential disasters, some more successful than others, and most within the industry would agree that constant progress is essential.

However, given the nature of air transportation, especially with potential for human error, we have to accept that challenges are inevitable and aircraft manufacturers should not be immediately held accountable. Until both investigations are completed, which could take months, the verdict is still out.

If you have any comments to make on this

month’s issue of Logistics Middle East,

send your emails to [email protected]

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

Reserving judgement on Middle East cargo crashes

Page 5: Logistics Middle East - Sept 2010
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4

READERS LETTERS

SEPTEMBER 2010 | www.arabianbusiness.com/transportation4

Dangers with hazardous cargo Dear Editor,

At the risk of sounding like a paranoid freight forwarder, I thought the

Logistics Middle East feature on hazardous cargo last month was a much needed reminder to those in the industry. I agree that there are most certainly providers out there that are not following the laws that have been put in place for the safety

of everyone. Sadly, this puts all of us at risk. I would like to see these ill-

minded companies eventually pushed out of the market, but I don’t know if that

will happen anytime soon. Peter Blackman

Perfect timing for WMS article!Dear Editor, I wanted to thank you for covering warehouse management systems (WMS) in this month’s issue. Right now, my company is searching the market for a solution that is better than our current in-house system. After operating the same WMS since 2001, we are looking to upgrade. For us, your article could not have come at a better time. I also appreciated the analysis by Margareta AbuRas from Integral, who confi rmed that we are indeed making the right decision to invest in better technology. I also reminded my MD that if we don’t keep moving forward, we will be left behind. Sunil Shetty

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A healthy logistics marketDear Editor,For a number of years now, trade reports have highlighted the opportunities for logistics providers in the Middle East healthcare sector. However, surprisingly, there have been a limited number of 3PLs with the capabilities to meet this demand. I seem to remember Danzas being amongst the fi rst to open a healthcare warehouse in Dubai, while Pharma World Holdings also made a splash in 2009, although I have not heard anything about them in recent months. Let’s hope the opening of Hellmann Calipar Healthcare Logistics meets a positive response. It was very interesting to read Madhav Kurup’s plans for the company.Farook Ahmed

Do we need stricter regulations?Dear Editor,Your news story on the discovery of corpses on the site of a Dubai warehouse fi re months after their death was shocking. How could the investigating team allow this to happen? And what about the warehouse owner that allowed his workers to operate in such terrible conditions? He should be arrested and imprisoned for several years to set an example for others in the Middle East. Of course, we also need to address the regulations in place that allow such incidents to occur, with perhaps the introduction of regular surprise visits from inspectors.Farook Ahmed

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).

Focusing on at the positivesDear Editor, I’m surprised at some of the negative sentiment that Al Maktoum International at Dubai World Central has attracted. In fact, the UAE should be applauded for investing in such a large-scale project, which will benefi t so many diff erent industries, from logistics and freight forwarding, to the likes of aviation, tourism, healthcare, and oil and gas. So what if the development was delayed by the global recession? Had it been another part of the world, the delay would have been much more severe. And so what if the opening has been scaled back? It has always been a long-term project. I’m glad the coverage in your magazine has been positive and I hope others will start to follow this example.Abdullah Al Majid

Farook Ahmed

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

hat ral edillcsn,e?y t

Page 7: Logistics Middle East - Sept 2010

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Page 8: Logistics Middle East - Sept 2010
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7www.arabiansupplychain.com | SEPTEMBER 2010

NEWS UPDATE

US extends $25m contract with Agility for six months

he US Defence Logistics Agency (DLA) has agreed to extend Agility’s prime vendor contract for a six-month period, in a deal worth around US$25 million. The extension, which commences this month, will allow the Kuwait-based supply chain specialist to

continue with the procurement and delivery of food supplies to US troops in the Middle East.

Agility, formerly Public Warehousing Company (PWC), was dropped from supplying food to 145,000 troops, civilians and contractors in Iraq, Kuwait and Jordan last year, after being accused of signifi cantly overcharging the military. The move was a major blow for the logistics company, which held contracts worth $8.5 billion over a three-year period.

Dubai-based rival Anham was later awarded a $2.2 billion contract by the DLA as a replacement vendor, although the decision was protested by a number of other bidders, including Kuwait and Gulf Link (KGL) Transport, which delayed the transition that eventually worked to Agility’s favour.

“DLA has awarded a six-month extension starting September 2010 for the warehouse and distribution service contract, with a value of around $25 million,” Agility confi rmed in a statement to the Dubai bourse.

Amidst the back and forth wrangling, the latest extension will entail handling procurement, shipping, warehousing, and distribution of food and non-food products for all service branches of the US military. As the declared victor, the contract will leverage Agility’s established asset-base, including more than one million square feet of climate-controlled warehouse space and 6000 transportation assets involved in the delivery of food and supplies to US military facilities throughout Iraq.

Vice Admiral Alan S. Thompson, director of DLA, made the determination in a memo to the Defence Supply Centre Philadelphia (DSCP), the branch of DLA responsible for the Prime Vendor II contract. “Continued performance by (Agility) through the end of its contract is critical to continuity of support,” he wrote.

Meanwhile, Anham provided a tour of its facilities to DLA offi cials last month and stated “the transition is fully on-track”.

TSmall victory for Kuwait-based fi rm as US Defence Logistics Agency (DLA) grants contract extension

NEWS UPDATE

“The previous vendor providing these services has been scaling back its operations as Anham establishes its supply chain, all in accordance with the transition schedule,” the company stated on its website. “The subsistence prime vendor contract is a massive logistical undertaking, one that requires careful attention to detail to ensure a seamless transition.”

DLA offi cials were invited on a tour of Anham’s warehouse facilities in Kuwait last month, to discuss a seamless transition of supply chain operations from former vendor Agility. The delegations were provided with briefi ngs about Anham’s operations, while observing processes, evaluating capabilities and asking tough questions. “We want to assure our customers that the services and support they’ve come to expect from DLA will continue without pause during the transition period,” stated General Scott Chambers, DLA troop support commander. “A major focus for DLA Troop Support during this transition is ensuring that the holiday meals our warfi ghters deserve and expect will be in the dining facilities during the holiday timeframe.”In its new role as prime vendor for troop support, Anham will manage all risk associated with purchasing, storing and delivering food and beverage items to US forces in the countries served in region. The contract has a base period of 18 months, which begins with the fi rst order. If all six years worth of options are exercised, the value of this award will be $2.16 billion.

DLA OFFICIALS VISIT ANHAM’S LOGISTICS BASE

Page 10: Logistics Middle East - Sept 2010

8 SEPTEMBER 2010 | www.arabiansupplychain.com

NEWS UPDATE

Logistics Company Limited has a showroom dedicated to specialist building materials in Sharjah Industrial Area, where it provides a storage capacity of approximately 5000 metric tonnes to meet Mapei’s logistics and handling requirements.

FedEx has become the fi rst express transportation company to utilise the Mirsal 2 B2G courier service with Dubai Customs. The solution is designed to reduce human errors, automate business processes and provide a faster channel for declaration submissions. “This initiative has real benefi ts for our customers, such as reducing the amount of paper documentation required and providing better visibility for shipments,” stated Hamdi Osman, FedEx senior vice president in the Middle East, Indian subcontinent and Africa.

TNT Express has announced plans to increase the workforce of its Saudi Arabia subsidiary TNT SAB Express. The move is part of a strategy to bolster the company’s market share in the KSA logistics sector, with its main branch in Jeddah also being relocated to new executive offi ces. “Saudi imports have grown signifi cantly over the past few years and have catapulted the Kingdom ahead of other leading Middle Eastern countries in the logistics fi eld,” explained Martyn Wright, managing director of TNT SAB Express Saudi Arabia.

KBR has secured a contract withTDIC (Tourist Development and Investment Company) to provide logistics consultancy services forthe Sir Bani Yas island project in Abu Dhabi. The company will offer its expertise in the supply of materials, vehicles and marine transportation. “We looks forward to providing a high-quality service to the client, with accountability, integrity and discipline at the heart of our day-to-day operations,” said Colin Elliott, president of KBR Infrastructure and Minerals.

Emirates SkyCargo has expanded its alliance with SNTTA

Cargo, which has been signed as the operator’s fi rst General Sales and Service Agent (GSSA) in the United Arab Emirates.

Both companies have worked in partnership for a number of years, with SNTTA Cargo serving as the general sales agent (GSA) for Emirates SkyCargo since the airline was launched. Under the new agreement, which focuses on Sharjah, it will provide GSSA services from a dedicated offi ce at Sharjah International Airport.

“As our GSA in Sharjah for almost 25 years, SNTTA Cargo has been providing valuable support to our operations at Sharjah Airport,” commented Ram Menen, divisional senior vice president of Emirates SkyCargo. “We are delighted to appoint SNTTA Cargo as our fi rst GSSA in the UAE, and this is in recognition of the

Senior offi cials from Emirates SkyCargo and SNTTA Cargo during the contract signing

Mapei’s Laith Haboubi with Rajesh Somabhat Patel from Logistics Company Limited

Mapei has signed a reseller agreement with Logistics

Company Limited. The global manufacturer - which specialises in adhesives, sealants and chemical products for buildings - aims to leverage the market network and storage facilities of Logistics Company Limited to further consolidate its presence and strengthen its customer base in the UAE.

“It has been our vision to strengthen our presence across key markets in the country and we believe that the market presence and experience of Logistics Company Limited will enhance our competitive advantage and complement our own growth initiatives,” said Laith Haboubi, business development director of Mapei.

Emirates enters SNTTA cargo alliance

Logistics Company Limited to support Mapei

AIRFREIGHT

Sharjah-based logistics company is selected as the fi rst GSSA for the airline in the United Arab Emirates

outstanding role it has played in ensuring speedy and smooth movement of our cargo through Sharjah Airport. As Emirates SkyCargo gears up for higher growth, we see SNTTA Cargo playing a greater role in boosting our business.”

SNTTA Cargo will offer support in the movement and transfer of consignments in and out of Sharjah Airport to a variety of destinations around

the world. “We feel privileged that Emirates SkyCargo has demonstrated its confi dence in SNTTA Cargo by elevating our status from GSA to GSSA,” commented Vishal Dhamija, senior manager of SNTTA Cargo. “We are determined to go the extra mile in meeting the airline’s high standards by ensuring that our trained staff at Sharjah Airport exceed their expectations.”

LOGISTICS

NEWS IN BRIEF

“We believe Mapei and Logistics Company Limited have identical corporate values, which make our partnership all the more symbiotic,” stated Rajesh Somabhai Patel, managing director of Logistics Company Limited.

Page 11: Logistics Middle East - Sept 2010

9www.arabiansupplychain.com | SEPTEMBER 2010

UAE to place British logistics studentsLogistics students who failed to secure a place at the University of

Bolton UK due to heavy demand could be offered an alternative position at the institute’s sister campus in Ras Al Khaimah.

Around 50 applicants from the UK or other European countries who have achieved three As at A-level, but missed a place at Bolton, will be offered an alternative spot on three-year degree programmes in the Gulf emirate, near Dubai.

Tuition and accommodation costs will be the same as those charged in the UK, while the undergraduate logistics course is directly equivalent to the one taught in Bolton. In addition, undergraduates in the Middle East will sit the same papers, set by the same exam boards, which will be marked and externally verifi ed in the same way.

EDUCATION

“It is expected that a large number of students from the UK and Europe will be left without a place at their preferred universities in 2010. As a means to addressing this issue, the University of Bolton is offering places to those students on 14 programmes across disciplines at its Ras Al Khaimah campus, including logistics,” Dr Zubair Hanslot, academic director at the University of Bolton,

RAK Campus told Logistics Middle East. “The students will have the opportunity to get a quality British degree on a programme of their choice. Visa and accommodation costs will also be subsidised to a signifi cant extent, thereby giving students the chance to gain solid international experience, whilst studying for the same British degree that they had opted for in the fi rst place.”

NEWS UDPATE

With heavy demand for UK university places, students could now be homed in RAK

Morgan International has hailed the successful completion of its Middle East logistics roadshow, which toured locations such as Abu Dhabi, Dubai, Beirut, Amman, Jeddah, Riyadh and Dammam. The campaign was designed as a platform for guests to discuss the latest trends in logistics and promote the company’s CSCP education programme. “The tour’s success is testament to the ever-growing importance of supply chain and logistics in the region and the need for industry-specifi c education,” responded Fadi Ganni, CEO of Morgan International.

NEWS IN BRIEF

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10 SEPTEMBER 2010 | www.arabiansupplychain.com

NEWS UPDATE

The logistics company will offer a range of services as part of the deal, with packages and documents collected from SCCI headquarters and delivered to any point within FedEx’s coverage area.

Eros Group has presented an excellence award to the client management department of Dubai Customs. The company, which is a distributor of brands such as Samsung, Hitachi and BenQ in the Middle East, stated that Dubai Customs was selected after playing an infl uential role in its strong market performance, with 25% growth expected in sales this year. “We see many parallels in the way Dubai Customs treats it clients and the way we focus on our customer,” explained Deepak Babani, chief executive offi cer of Eros Group.

Qatar Petrochemical Company (Qapco) has opened its latest warehousing complex, located in the Lebanese city of Tripoli. “The start of operations at this logistics centre will defi nitely help to meet the increasing demands of clients, as our exports of petrochemical products are reaching 20,000 MTA,” stated Dr Mohammed Yousef Al Mulla, general manager of Qapco. “We can now expect faster access to customers and hope our high-quality products and services will exceed their expectations.”

Dubai Trade continued its client evaluation programme last month by hosting a meeting with offi cials from Wilhelmsen Ships Service. The company, which is the e-services provider of Dubai World, initiated the programme to maintain direct communication with its portal users. “We aim to encourage the usage of online services and take feedback directly from users,” said Mahmood Albastaki, director of Dubai Trade. “As a leading maritime and logistics group, Wilhelmsen is one of the most frequent users of the services available on Dubai Trade’s portal.”

TNT Express has opened a logistics establishment in

Dubai Mall’s ‘edutainment’ centre KidZania to provide children with the opportunity to experience the collection and distribution of documents, parcels and freight.

The logistics company is the latest global brand to invest in the project, with others including the likes of HSBC, McDonalds and Sony.

“We are all very excited to see TNT take to the fl oor in KidZania. Everyone who has visited the establishment so far has been amazed by the pace of the environment and how much children seem to enjoy participating in the world of work,” said Mark Woodcock, sales and commercial director for TNT Express UAE.

With over seventy real-life professions to choose from,

Kids can experience life as a delivery driver at TNT’s KidZania logistics establishment

The Sharjah Chamber of Commerce and Industry (SCCI) has

signed a partnership agreement with FedEx to provide special courier services and products for its members.

TNT opens Dubai kids learning centre

Offi cials from FedEx and SCCI at the contract signing for their new logistics partnership

FedEx to service Sharjah Chamber members

EXPRESSLOGISTICS

Logistics company is the latest in a string of global brands to establish a presence at ‘edutainment’ centre

EXPRESSLOGISTICS

NEWS IN BRIEF

In addition, FedEx will use automated devices in strategic locations to enhance effi ciency and reduce paperwork, while stationing a representative at the SCCI’s headquarters.

“This partnership is part of our membership management plan, an initiative to provide our members with world-class services that can support their efforts to increase and improve effi ciencies, productivity and profi t,” said Khaled Bin Butti Bin Obaid, assistant director general for membership and branch affairs at SCCI.

“Our choice to partner with FedEx is the result of the chamber’s search for a company that could provide our members with key services that do not compromise on quality and strictly adheres to set terms and conditions,” he added.

children are able to learn a range of skills, such as delivering good service, time keeping and fundamental skills within the express delivery industry.

“KidZania is dedicated to providing our young visitors with unparalleled learning experiences,” said Will Edwards, governor of KidZania Dubai.

“We are very proud to partner with a logistics leader such as TNT Express in Dubai. Their participation will help to further enhance children’s understanding of the profession and create an opportunity to work in a courier service, delivering and collecting parcels around the entire mini city.”

Page 13: Logistics Middle East - Sept 2010

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Page 14: Logistics Middle East - Sept 2010

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Page 15: Logistics Middle East - Sept 2010

13www.arabiansupplychain.com | SEPTEMBER 2010

NEWS UPDATE

I have experienced, thanks to the seamless work by GAC,” said Paul Hamilton, curator of Dubai Mall’s Aquarium and Underwater Zoo, which is the new home for both sharks.

GAC claimed it had prepared everything to avoid delays and minimise the time in transit, including arrangements to book

Steel Buildings Company (SBC) has become the fi rst business in Jordan to take delivery of a Combilift 4-way forklift. SBC, which is a manufacturer of structural steel buildings, claims the forklift has led to reductions in time, space and material handling costs. “We often deal with three or four tonne loads with lengths of 13 metres, which were problematic,” stated Vatche Karmandarian, SBC general manager. “When I saw the Combilift at a Dubai exhibition, I realised its multi-directional capability was exactly what our company needed.”

Majaal has confi rmed its role as logistics sponsor for next year’s Gulf Industry Fair. The event, which takes place at Bahrain International Convention & Exhibition Centre, is aimed at companies that serve the region’s growing industrial sector. “Gulf Industry Fair’s exhibitor and visitor profi le matches our target audience, and is an excellent vehicle through which we can establish new contacts with SMEs from Bahrain and around the world,” said Amin Al Arrayed, managing director of Majaal.

Dubai-based FVC has awarded a contract to Merzario for supply chain and logistics services in Amsterdam. As a leading 3PL in Europe, Merzario was selected for its ability to provide the same level of services as FVC’s distribution hub in Jebel Ali Free Zone. “Setting a supply chain hub into Europe has created added-value to our partners in North and West Africa in terms of faster deliveries, thanks to direct cargo fl ights to the region. This is the most cost effective solution all around,” stated K.S. Parag, managing director of FVC.

Aramex has signed an agreement with thematrimonial website

Shaadi.com to establish a unique payment facility, which allows customers to have their payments collected by the logistics company from any location across the UAE.

“As part of our ongoing efforts to cater to the diverse needs of customers and support the evolution of e-commerce in the region, Aramex is pleased to offer its unique payment collection facility to Shaadi.com,” said Hussein Hachem, Aramex chief executive offi cer for the Middle East and Africa. “Our collection services will extend to members across the UAE, including Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al-Khaimah, Sharjah and Umm al-Quwain.”

Aramex will collect the payment of Shaadi.com members from anywhere in the UAE

The sharks made their journey by plane and temperature-controlled reefer truck

GAC has successfully moved a shipment of silver tip sharks

from Cairns in Australia to the United Arab Emirates.

“Although it was the fi rst time this particular species had undergone such a long-haul journey, this has been one of the smoothest shark transports

Aramex joins forces with Shaadi.com

GAC transports shipment of sharks to UAE

3PL continues its support of e-commerce in Middle East with a new service offering for matrimonial website

The partnership also involves UAE Exchange, allowing Shaadi.com customers to make subscription payments over the counter. “We are confi dent of the value addition that both

our new partners bring through their heritage and experience, and look forward to even more satisfi ed members across the region,” said Gourav Rakshit, business head of Shaadi.com.

NEWS IN BRIEF

an airport parking slot nearest to the specialised handling centre, fast-track clearances, permission to bypass truck road bans and police escorts to ensure priority passage.

Once the plane landed, the team overlooked the offl oading and transfer of the sharks to special cool dollies that ensured they were protected from seething Dubai summer temperatures. These were then loaded onto GAC’s temperature-controlled reefer truck for transport to the aquarium.

“They arrived in such good condition and with minimum stress that they started feeding within 40 minutes after being introduced into their new environment,” Hamilton added.

GAC has been handling live shipments for Dubai Aquarium and Underwater Zoo since 2007 and has developed a well-honed system that ensures sensitive shipments of live animals arrive safely at their destination.

3PL

3PL

Page 16: Logistics Middle East - Sept 2010

14 AUGUST 2010 | www.arabiansupplychain.com

NEWS UPDATE

from continuing operations up by 10% to $206m.

“We are extremely pleased with the operational and fi nancial performance of the business in the fi rst half of the year. This is a refl ection of returning container volumes and our continued focus on driving through effi ciencies and managing costs right across our terminal portfolio,” stated Mohammed Sharaf, chief executive offi cer of DP World.

Supply Network Solutions (SNS) has confi rmed plans to host its second annual logistics seminarin Lebanon on 4th November 2010. The event takes place at Beirut’s Habtoor Grand Hotel under the theme ‘Every Cent Counts: Perfect Your Warehouse’. “This seminar will provide a chance for attendees to participate in informal networking and discussions with fellow industry professionals and learn the best practices being applied to enhance supply chain performances,” explained Mario Ghosn, general manager of SNS.

Dubai-based Economic Zones World (EZW) will open a building at Djibouti Free Zone with businesscentre, restaurant, store and prayer rooms, amongst other amenities. “This is the latest development at the free zone, which already hosts world-class facilities for offi ces, storage, distribution and light manufacturing,” commented Ali Dawood, senior vice president of EZW’s emerging business unit. “We aim to bring our customers the most sophisticated infrastructure as they facilitate their businesses in East Africa and beyond.”

Bahrain’s General Organisation of Sea Ports (GOP) will host the fi rst annual Bahrain Maritime Festival this month, in support of World Maritime Day. The event takes place on 20th-24th September with a host of activities for Bahraini sea-goers. “We plan to hold this festival each year with a different theme to engage as broad an audience as possible,” explained Shaikh Daij bin Salman Al Khalifa, chairman of GOP. “The inaugural Bahrain Maritime Festival in September will target past, current and future generations of seafarers.”

Dubai-based RSA Logistics has selected the Infor warehouse

management system (WMS) to bolster its supply chain operations in the Middle East, with advanced traceability for tasks such as receiving, put-away, replenishments, picking, packing, labelling and shipping.

The company, which was the fi rst logistics service provider to commence operations at Dubai Logistics City (DLC), worked with SPAN Group to implement the solution and customise a module to handle the bill of entry, bill of exit and process documentation, among others, between DLC and neighbouring Jebel Ali Free Zone.

“The warehouse facility at DLC needed a top-line supply chain solution to effi ciently manage our operations and support our drive towards providing value-added

RSA Logistics believes the WMS will lead to greater traceability within its supply chain

DP World has become the world’s third-biggest ports operator,

after opening a series of new terminals and out-performing global rivals, according to Drewry Shipping Consultants’ annual report.

The Dubai World subsidiary pipped APM Terminals to third place after handling 31.5m twenty foot equivalent units (TEUs) compared to the Hague-based fi rm, which handled 31.1m TEUs.

DP World holds 6.7% of the global market share, sitting just behind Hutchison Port Holdings, which has 6.8%. Top spot was taken by Singapore’s PSA International, with a 9.5% of the market.

Last month, DP World reported higher-than expected half-year results, with throughput rising by seven percent and net profi t after tax

Infor equips RSA Logistics with WMS

Only Hutchison Port Holdings and PSA International lead DP World in the port sector

DP World becomes third-biggest ports fi rm

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Solution customised by Dubai-based SPAN Group to provide improvements in client’s supply chain operations

MARITIME

NEWS IN BRIEF

“As we move into the second half of the year, uncertainty remains over the sustainability of global trade volumes. However, we expect the second half to deliver stronger results than the fi rst half of the year as our terminals benefi t from seasonal trade fl ows and the contribution from new terminals, in addition to some ongoing improvement in non-container revenues,” continued Sharaf.

services,” stated Abhishek A. Shah, operations executive, RSA Logistics. “After evaluating the various warehouse management solutions available in the market, we selected Infor’s WMS due to its advanced functionality, remarkable local support and demonstrated success in the Middle East region.”

RSA Logistics opened its 25,000m2 warehouse facility at Dubai Logistics City last year.

“Infor’s WMS will enable our company to capitalise on value-added services, such as packaging, repackaging, inspection, quality control, better analytics and improved billing for customers,” added Shah.

“We can now organise the whole of our warehouse operations, including critical time-sensitive procedures such as managing inbound and outbound deliveries, and inventory control.”

Page 17: Logistics Middle East - Sept 2010

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Page 18: Logistics Middle East - Sept 2010

SEPTEMBER 2010 | www.arabiansupplychain.com16

EDITOR’S CHOICES

SPOT POLL

Have warehousing companies entered a price war in the Middle East?

46.2% 23.1%30.7%Yes, the price of storage space is low at the moment

The online home of:Still hungry for more news?

for regular updates on the Middle East logistics industry

PHOTO SPECIALAbdulla Fouad Holding hosts KSA warehouse tourStudents were invited to the Saudi Arabian company’s distribution centre in Damman to learn more about supply chain management.

EXPERT COLUMNThe keys to success in warehouse designSanjeeve Thavarajah from Al Madina Logistics provides his expertise on how to achieve successful warehouse design.

MOST TALKED ABOUT LOGISTICS COMPANIES ON ARABIANSUPPLYCHAIN.COM

Agility

Aramex

TNT Express

Gulf Agency Company

FedEx

MOST POPULAR HEADLINES

1 Death toll rises after Dubai warehouse fi re

2 Bad landing to blame for Lufthansa Cargo crash

3 Saudi approves $20m ransom for hijacked ship

4 Dubai Customs fi nds heroin in air-freighted shipment

5 Traffi c chaos on Kuwait roads after sinkhole opens

WEBSITE STATISTICS

ONLINE HIGHLIGHTS

Maybe, a decline is cost has been noticed recently

No, storage space is still lucrative for such companies

Cargo volumes will continue to rise in the United Arab Emirates over the next fi ve years, although growth

rates will be placed in jeopardy by the threat of a ‘double-dip’ in the global economy, according to Business

Monitor International. Th e assessment was published last month in the research company’s UAE Freight

Transport Report Q4 2010, which predicted that maritime freight will outpace the growth of airfreight

over the 2010-2014 period. “Th e country is experiencing a recovery in its overall trade, after the declines

of 2008/2009. A number of road projects have been fi nished, and phase one of Dubai World Central-Al

Maktoum International Airport became operational for cargo fl ights in June 2010. Th e ambitious Union

Railway that will link all seven emirates with Saudi Arabia and Oman is also going ahead,” explained

Michelle Byrne, head of shipping and freight transport at BMI’s London offi ce.

“However, there is still the possibility of a double-dip recession knocking the UAE’s growth in 2009 off -

track. But despite this risk, the positive trend in the economy and its freight transport sector for 2010 means

that in BMI’s view airfreight will grow at 4-5% and maritime freight will grow between 11-18% over the

2010-14 period. Th is is expected to be less than occurred before the economic crisis, but will still be strong

and positive growth,” she added.

BMI predicts growth in UAE cargo volumes

Page 19: Logistics Middle East - Sept 2010

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Page 20: Logistics Middle East - Sept 2010

18 SEPTEMBER 2010 | www.arabiansupplychain.com

COVER STORY

Andreas Mohr, chief executive offi cer of

Jassim Transport and Stevedoring Company

Page 21: Logistics Middle East - Sept 2010

19

COVER STORY

www.arabiansupplychain.com | SEPTEMBER 2010

COVER STORY

To support this growth, the company has launched a massive recruitment drive, with nearly 2150 employees already in place and another 400 in the process of recruitment. Large-scale investments have also been made to expand its fl eet, which now includes over 1000 tractor heads, with trailers such as reefers, rankers, low beds, car carriers and Scheuerle modular trailers. A further 300 trucks and trailers are subcontracted. In addition to the trucking fl eet, JTC also has more than 20 reach stackers for the ports division,

and cranes ranging in capacity from 20 tonnes to 450 tonnes in the equipment leasing division.

As Kuwait has remained a central hub for the US Forces in the region, including the Horn of Africa, Afghanistan and of course Iraq, Mohr estimates that at least 60 per cent of trucking and warehousing assets are in one way or the other involved in supporting the US Army. “Th is market segment was not aff ected during the recession. On the contrary, operations in some areas actually increased,” he says.

“However, there are only a handful of large players in Kuwait that off er modern equipment and warehousing capabilities on a signifi cant scale. Other logistics companies are typically operating truck fl eets with between 20 and 150 units, which are often managed directly by the owners; typically there will be a lack of IT and documentation capabilities as this type of operator would look for subcontracts only. Of course, the international logistics companies have their local franchises, but do not play a major role other than managing imports.”

Th e situation has placed JTC in a strong position and Mohr confi rms that business has more than doubled over the past fi ve years. Customers include the likes of KIA Motors, BMW, Nissan and General Motors in the automotive sector, and Schlumberger, Halliburton, Equate Petrochemical and Kharafi National in the oil and gas sector. Industrial customers such as Hyundai and GS Engineering and Construction also contribute a signifi cant amount of business.

However, the rapid pace of growth has created a unique set of challenges for the executive and his team, especially when it comes to continuously delivering a quality service. “We want to maintain

ince its launch as a Kuwait-based inland transportation

company in 1979, Jassim Transport and Stevedoring

Company (JTC) has emerged as one of the largest and

most successful players in Middle East logistics. Similar

to other veterans in the industry, diversifi cation has

played an essential role in the company’s transformation and the JTC

brand is now active in several locations across the region, with a core

focus on port operations, equipment leasing and contract logistics.

“Initially our success was due to massive demand for cross border transportation to Iraq, especially during the Iraq-Iran war. However, we have become a more dynamic, diversifi ed and responsive organisation today,” explains Andreas Mohr, chief executive offi cer of JTC, who is heading the company’s 30th anniversary celebrations. “In terms of our port business, JTC Ports is the primary operator at Shuwaikh Port and handles over one million freight tonnes of general cargo a year. Th rough our industrial leasing division, we off er everything from mobile tower lights and welding machines to power generating products and air compressors. And fi nally, with contract logistics, JTC manages over one million square feet of multi-use space in close proximity to Shuwaikh Port.”

With 20 years of experience in shipping and logistics, Mohr has received a series of promotions since becoming a member of the JTC team in 2003, including a jump to general manager in 2005, chief operating offi cer in 2009 and, most recently, chief executive offi cer in May 2010. As a result, he’s witnessed the impact of the company’s diversifi cation programme, not only in terms of rapid growth during the boom years, but also profi t-making during the market downturn in 2009 and 2010.

“We recognised that overall volumes would shrink in 2009, but managed to grow the business by increasing our market share in Kuwait ports and moving over 100 cranes to Qatar, where the market remained strong throughout the year,” states Mohr. “We have also been increasing our regional footprint and by the end of this year, operations would have started in Abu Dhabi, Dubai and Iraq. Saudi Arabia will be added to this list by the fi rst quarter of 2011, through an acquisition or joint venture.”

S“By the end of this

year, operations would have

started in Abu Dhabi, Dubai and Iraq, with Saudi Arabia to follow”

Celebrating its 30th anniversary of operations, what does Jassim Transport and Stevedoring Company (JTC) have planned for its latest development strategy in the Middle East?

KUWAIT CREDENTIALS

Page 22: Logistics Middle East - Sept 2010

COVER STORY

20 SEPTEMBER 2010 | www.arabiansupplychain.com

“Th e implementation was an enormous challenge due to the large footprint and short project deadlines. However, due to the committed eff ort from all participants,

we successfully achieved this major milestone and will now be able to

provide even better business services and practices to our clients.”

When it comes to ensuring the company maintains its position

as an industry leader, Mohr is confi dent in his

strategy. “Looking ahead, we expect to become a regional

logistics company with three principle activities - third party logistics, project cargo handling and bulk fuel storage and distribution. Depending on the geography, we may only engage in one or more of these activities in a particular country upon entry,” he explains.

“I believe its important to enter into the right strategic alliances or joint ventures, where we fi nd a compatible culture and an equal appetite for growth. As a regional company you need to have access to global network to cover the entire supply chain – we do not see ourselves as freight forwarders, but we add value to the signifi cant ones and vice-versa.”

we successfully acmilestone and

provide eveservices our client

When ensuringmaintain

as an Mohr is

strategy. we expect to b

logistics company wactivities - third party cargo handling and bulkdistribution. Depending

The number of employees at JTC, with another 400 in the process of recruitment

2150

Senior executives from Jassim Transport and Stevedoring Company (JTC) during a management meeting at the logistics fi rm’s central headquarters in Kuwait last month

JTC: Company Timeline

1979 – Company founded with transport services offered in Kuwait

1980 – Portfolio expanded with the launch of Iraq transport services

1986 – Launch of general cargo stevedoring at Shuwaikh Port

1996 – Launch of general container stevedoring at Shuwaikh Port

1997 – Equipment leasing division was founded on back of a contract from Kuwait National Petroleum Company

2001 – Launch of stevedoring at Sulaibiya Customs Bonded Area

2002 – JTC acquired by Transport and Warehousing Group (TWG)

2005 – Construction of cold stores and ambient warehousing in Kuwait

2005 – US Army fuel distribution contract2006 – JTC acquired by Boodai Corporation from TWG2007 – Launch of JTC Qatar operations2007 – Start of customs bonded warehouse operations 2009 – Global Investment House accquires 60% stake in JTC

this growth, but it’s important that our service levels are constantly high, because customers have big expectations from JTC,” he comments.

“At the end of the day, the key to long-term growth is quality and reliability of service. Both are diffi cult to come by in this region. Th ere will always be lots of competition, but we will succeed through continuous investment in our staff , QHSE levels and technology systems.”

To prove his point, Mohr describes the recent implementation of Oracle’s E-Business Suite Release 12.1 into JTC’s business practices, with modules covering areas such as fi nancials, purchasing, inventory, order management, enterprise asset maintenance, HRMS and additional custom developed operational modules. Th e implementation was delivered by HCL Technologies over eight months.

“Th e implementation involved the training of all staff and enables us to provide comprehensive coverage of all divisions and departments. Not only does this meet international standards of excellence, but it increases our fl exibility and response to market demands,” he says.

Page 23: Logistics Middle East - Sept 2010

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Page 24: Logistics Middle East - Sept 2010

22 SEPTEMBER 2010 | www.arabiansupplychain.com

SPECIAL REPORT: WAREHOUSE RACKING

WAREHOUSERACKING REPORT

Page 25: Logistics Middle East - Sept 2010

23www.arabiansupplychain.com | SEPTEMBER 2010

SPECIAL REPORT: WAREHOUSE RACKING

ollowing a global downturn

in the warehouse racking

sector over the past couple of

years, it seems obvious that

the Middle East market would

have been impacted. Th e level of that impact,

however, is diffi cult to assess, with continued

limitations in offi cial reports or statistics

across the region. Th ankfully, there have been

whispers that progress is underway to rectify

this situation, but in the meantime, a certain

amount of guesswork is essential

to measure the sector’s health in a

recovering market.

“It’s very diffi cult to gauge the market size for warehouse racking and shelving in the Middle East, because offi cial fi gures are not ready available,” agrees Patrick Daly, managing director and founder of warehouse consultancy fi rm Alba Logistics. “It would appear that the global downturn has resulted in a scarcity of new warehouse projects in 2009 and 2010, which has been diffi cult and challenging for vendors and resellers in the region. Th ere is fi erce competition at the lower-end of the market, with some reporting the tell-tale signs of a price war.”

In particular, the rapid growth of the United Arab Emirates market has been knocked by the recession, with Daly estimating a maximum decrease of 30-40 per cent, which has prompted a number of local players to focus their attention on other markets. “Traditionally the largest markets have been the countries in the GCC area, particularly the UAE, Saudi Arabia and Qatar, where there is a signifi cant presence of both international companies and large state-owned businesses,” he explains. “Th ese markets have experienced a sharp slowdown in response to the global recession with limited recovery in demand so far. And while these GCC countries will continue to represent a signifi cant share of the overall regional market and will no doubt recover in time, the likes of Egypt and Turkey are coming through as strong growth markets for the future.”

To capitalise on the growth of emerging markets in the region, providers of warehouse racking systems will need to ensure their sales staff are accustomed to cultural diversity in the buying habits of each country. “As a developing region,

“There is fi erce competition at

the lower-end of the market, with some reporting

the tell-tale signs of a price war”

“There is fi erce competition at

the lower-end of he market, with

me reporting e tell-tale signs

of a price war”

With an infl ux of warehousing space coming onto the market, putting the right racking solution into place should not be overlooked, according to Alba Logistics’ Patrick Daly.

ollowing

in the w

sector ove

years, it

the Middle

have been impacted. Th e

however, is diffi cult to as

limitations in offi cial r

across the region. Th ankf

whispers that progress is

this situation, but in the

amount of guesswork is e

to measure the sector’s he

recovering market.

“It’s very diffi cult tothe market size for waracking and shelving Middle East, because fi gures are not ready avagrees Patrick Daly, mdirector and found

With an infl ux osolution into pla

the Middle East has a wide spectrum of buyer types, both in terms of individuals engaged in purchasing activities and their employer companies,” states Daly. “Where one organisation may be highly focused on return-on-investment, quality and compliance with international standards, others may be much more focused on bottom-line price. Vendors and their resellers consequently must be very fl exible and culturally aware in order to adapt

their approach to sales and customer service to match the requirements of their buyers.”

Demand for simple and fl exible solutions, such as selective pallet racking, has remained common in the Middle East, as opposed to the more rigid systems that are popular in

other parts of the world. Daly believes this is down to the fact that selective pallet racking is economical, relatively easy to modify and relocate, adaptable to diff erent types of material handling equipment, and, with the help of modular accessories, can be applied in a wide variety of roles in warehousing. “Select pallet racking is ubiquitous and continues to make up a signifi cant proportion of the market. I believe it will continue to constitute a major proportion of the market for the foreseeable future,” he says.

However, Daly does contend that other more specialised solutions are indeed making an appearance in the region. For large batch sizes, systems such as drive-in racking and racking on mobile bases, as well as more sophisticated high-density storage systems such as push-back racking, gravity fl ow racking and satellite carts, are beginning to fi nd regular use. For storage and picking of smaller items with multiple SKU types, conventional light-duty shelving systems suitable for manual picking continue to feature heavily, with sophisticated order picking solutions such as mini-load, pick-by-light, pick-to-light systems also making limited in-roads.

When it comes to technology and streamlining operational assets, Daly is confi dent that from an automation stand point, the future is bright for the GCC. And though the transition will not happen

Fovernight, market conditions are calling for greater effi ciency in day-to-day operations.

“I foresee only a gradual and slow recovery in the core GCC markets hardest hit by the recession. When they do recover, these markets will exhibit higher levels of sophistication in the specifi cation and selection of storage and material handling systems and solutions. Th ere will be a greater involvement of internal and external specialists in design, specifi cation and selection processes to ensure optimum return on investment, higher levels of compliance with global standards and greater fl exibility to adapt to unexpected shocks to the business,” he concludes.

“Increasing economic development in certain home countries that provide cheap labour for GCC countries will lead to a growing shortage of qualifi ed warehouse workers at operator, supervisor and manager levels, as people will more readily fi nd attractive opportunities at home. Th is shortage may trigger a take-off in the uptake of more sophisticated, systems-driven, automated and semi-automated solutions for the storage, retrieval, picking and sorting of goods in warehouse facilities. In those markets that are at an early stage of development, particularly those with relatively high growth levels, large populations and high levels of unemployment, the recovery will likely be much quicker, but the levels of sophistication, particularly outside the international companies operating in these countries, will continue to lag those of the more mature markets in the GCC.”

Patrick Daly, managing director and founder of Alba Logistics, has over 20 years of experience in the manufacturing, distribution and logistics sectors. He is a member of Dubai-based trade association Supply Chain and Logistics Group (SCLG).

PATRICK DALY

Page 26: Logistics Middle East - Sept 2010

24 SEPTEMBER 2010 | www.arabiansupplychain.com

COMPANY PROFILES: WAREHOUSE RACKING

SSI SCHAEFER - GEOFF WHEATLEY, MANAGING DIRECTOR, MIDDLE EAST AND AFRICA

What do Middle East customers demand from racking providers? Customers are looking for complete planning, design and installation solutions, which should also be cost

effective for their business.

What type of racking is offered by SSI Schaefer? We provide all types of racking, including selective, drive-in, double-deep, very-narrow aisle (VNA), satellite racking with remote controlled radio

shuttles, pallet fl ow systems, push back systems, mobile rack systems and highbay up to 45 metres high for automated systems.

What factors should be taken into consideration when making a selection? This can only be assessed once the product/ quantity analysis has been completed to determine the correct system for the clients application. This includes a full evaluation of pallets size shapes and weights, throughput requirements, selectivity requirements and parameters of the warehouse, such as height, length and width.

How strong is demand for pallet racking in the Middle East at the moment? Schaefer Dubai operates throughout the Middle East and Africa, We believe markets are very similar and only differ in volumes and complexities throughout the world, with adjustment for the different pallet standards, as many countries and industries have their own particular pallet sizes.

Do you believe this market is underserved or oversupplied with providers?In the UAE, the market is oversupplied with non-compliant, non-standard products that are imported from across the world, especially Asia and China, where the known international safety standards as recognised in Europe, the US and Australia are not enforced. This

sometimes attracts unsafe racking from ‘back-street’ manufacturers, where the product has not been tested and only claim to confi rm to internationally recognised standards, without ever being tested and certifi ed. In the local yellow pages, there are over 40 racking suppliers advertising their wares. However, there are two or three suppliers that do market internationally certifi ed racking.

Can you name some of your customers in the Middle East region?We have worked with most blue chip companies in the region, such as Nestle, Unilever, Proctor and Gamble, Coca Cola, Masafi , Al Ghurair Group, Al Tayer Group, Al Shaya Group, Mercedes, BMW and Ford. Our customers also include the major logistics providers, such as Kuehne + Nagle, Agility, GAC, Panalpina, UTI, Ceva Logistics, RHS, CWT and many others. Our client base is basically a refl ection of most of the major companies in the Middle East.

What racking advancements would you like to see in the coming years? I would like to see advancement in the combination of both handling and storage systems into one integrated system, usually with a software package including warehouse control system (WCS) and/or warehouse management systems (WMS). This is the future for the global racking industry.

What do Middle East customers demand from racking providers? Customers are far more aware of the variety of storage solutions that are on offer. They are demanding for greater productivity and higher utilisation of warehousing space and are now willing to invest in developing their storage facilities. Businesses are hiring supply chain managers now and believe they can develop and maintain their competitive edge by investing in state-of-the-art logistics centres and currently look at their back-end warehouses as profi t centres and not cost centres. This change in mindset has made us tweak our offerings in the market too. What type of racking is currently offered by ACME Group?ACME offers the entire range of storage solutions to its customers in the region. This includes pallet racking, drive in

ACME GROUP - NAVIN NARAYAN, OWNER

racking, shuttle systems, small parts storage systems, plastic pallets, reusable transport boxes, forklifts, warehouse equipments, supply chain automation solutions, warehouse protection systems, as well as vacuum handling systems. We are a one stop shop for anyone planning to set up a distribution or logistics centre. What factors should be taken into consideration when making a selection? We have to take into account a wide variety of factors when choosing the right kind of system. This can range from the nature of business, type of throughput within the logistics facility, type of material handling equipment and the level of automation that the customer is comfortable with. One has to put all these pieces together before concluding on the right solution.

How strong is demand for pallet racking in the Middle East at the moment? The market seems to have bounced back and there is a resurging trend in pallet

racking projects. Customers are getting more aware of automation and more advanced order picking technologies.

Do you believe this market is underserved or oversupplied with providers?I defi nitely believe there is an acute case of oversupply and this has led to a lot of substandard fl y-by-night operators supplying inferior products and solutions to unwitting customers.

REGIONAL RACKING PROVIDERS

Page 27: Logistics Middle East - Sept 2010

25www.arabiansupplychain.com | SEPTEMBER 2010

COMPANY PROFILES: WAREHOUSE RACKING

What do Middle East customers demand from racking providers? Customers want safe and durable equipment and systems that are modular, adjustable and adaptable to their changing requirements. They expect advice and partnership from their providers to ensure they are getting the best price/performance ratio, especially in these days of economical downturn.

What type of racking is offered by SPAN Group? We supply storage solutions, material handling and IT solutions for logistics purposes to customers in the Middle East. SPAN provides a very wide range of storage systems, with bay heights from two to 20 metres and bay loads from one to 30 tonnes. Our racking systems are offered in several fi nishes and with various accessories to comply with the application at hand. Confi gurations include selective, double deep, drive-in, pushback, fl ow, mobile and radio shuttle racks . Shelving and mezzanine systems are also offered by the SPAN Group.

What factors should be taken into consideration when making a selection? First, the product attributes have to be defi ned (dimensions, shapes and weights), next the storage conditions considered (ambient or temperature controlled) and thereafter proximity issues considered (some products should not be stored next to each other). Most clients approach us with a basic understanding of what they need. However, by the time we probe and ask them some detailed questions about the nature of their business, their product mix, their customer ordering patterns, their procurement strategies and future expansion plans, the basic understanding of what they approached us with and what we propose become two different things. The factors that determines this racking mix versus another mix is the characteristics of the product and the pattern of goods in and out as well as the velocity needed to fulfi ll orders within the warehouse.

How strong is demand for pallet racking in the Middle East at the moment? The demand is currently fl at compared to the 2007 and 2008. Mega-projects have

become scarce, while medium to small size projects are still showing consistency.

Do you believe this market is underserved or oversupplied with providers? The storage equipment market is very fragmented worldwide. In each and every territory there are numerous manufacturers and providers. During the boom of 2008, many new players came into the market, and they were mainly medium in size. These days, some of them must have moved out of the market but the balance is still overcrowding the market.

SPAN GROUP - CAMILLE SAMAHA, GENERAL MANAGER

Page 28: Logistics Middle East - Sept 2010

26 SEPTEMBER 2010 | www.arabiansupplychain.com

COMPANY PROFILES: WAREHOUSE RACKING

BITO - MARIO AMMANN, GENERAL MANAGER

What do Middle East customers demand from racking providers? Most customers see pallet racks as just a neccessary evil in their warehouse, and are not aware that a right view on the processes and a proper design could save a lot of money. So if you compare a very transparent product like an ordinary simple rack, it usually leads to reduction of the investment cost only for the racks. Worst case for the customer is that he will have a cheap, simple pallet rack but the investment and running cost of the whole system is too high due purely to warehouse design.

What type of racking is offered by your company? BITO provides all kinds of inhouse storage and picking systems. This starts from simple shelving, up to very sophisticated automated racking systems, the latest development in the fi eld being the tuning of the existing racking systems of other suppliers with carton live. I think other systems like pallet live, mobile racking or even mixtures of these systems are not really implemented in the Middle East, since the benefi ts and the huge cost saving potential is simply not known by most of the market.

What factors should be taken into consideration when making a selection? I think fi rst of all you should see where, why and which goods have to be stored within the material fl ow. Do you pick whole pallets or do you pick single items from the pallet? What is the frequency of the material fl ow? Has the customer provideed systems like First-In-First-Out (FIFO)? It could be quite complicated if you have a deeper look and you need to have some experience in this.

How strong is demand for pallet racking in the Middle East at the moment? Wherever a customer handles pallets, you will probably fi nd demand for pallet racks or related systems, like pallet live or ASRS. The demand in the Middle East is quite high. But you could also fi nd a similar demand in countries with a good economic growth, for example, India.

Do you believe this market is underserved or oversupplied? In the Middle East, you fi nd suppliers from Europe but also from Asia. Sometimes the understanding of warehouse systems are not the same. BITO is one of the leading warehouse suppliers in Europe with it’s base in Germany - we have more than 60 years experience in designing and manufacturing. Our company follows quality and safety regulations from Germany, which can make it hard if you are competing with companies that don’t follow these standards.

What do Middle East customers demand from racking providers? Customers worldwide demand high levels of service from their providers. It is an industry with many providers of product, but few providing solutions. Inevitably the customer benefi ts from a well researched and planned solution, or loses from a cheaply purchased product. Modern thinkers recognise the opportunity of reaping benefi ts from a well designed warehouse operation with product correctly stored on pallets on modern storage systems.

What factors should be taken into consideration when making a selection? To determine the right system, we must ascertain the true customer requirements by commencing with the order profi le. This determines the main function of the warehouse or distribution centre. From the order profi les we can determine what storage and handling systems are required to support the picking operations. In general, questions to be asked include a review of the inventory, the resources and the activities, as well as inventory in terms of product type, shape, size and weight. It should also look into activities in terms of order profi les, picking requirements, seasonal trends, and resources such as facilities, HR, existing storage and mhe. The agreed solution is inevitably a compromise between many factors, including criteria such as location, facilities and budgets.

How strong is demand for pallet racking in the Middle East at the moment? Although the market has declined from its peak, the business has retained a remarkable resilience. However, gone is the mad rush of supplying hastily designed warehouses, replaced by more carefully planned and justifi ed facilities that likewise have to fulfi l fi nancial business plans. The Middle East has yet to peak in its demand for modern storage systems and we envisage a steady growth in both the requirement and the take up of these systems.

Do you believe this market is underserved or oversupplied with providers?There is an adequate supply of storage systems and solutions providers, but a surplus of companies supplying products of questionable origins and design.

Can you name some of your Middle East customers?Working across the industry ranges, FAMCO has worked with both international brands such as Nestle, Unilever, GAC, and well know local household brand names including Landmark group, Al Ghurair, Emirates and DP World.

FAMCO - DAVID DRONFIELD, GENERAL MANAGER

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28 SEPTEMBER 2010 | www.arabiansupplychain.com

CASE STUDY: WAREHOUSE RACKING

STACKING SUCCESSQ Home Decor’s logistics manager Shailesh Hedge highlights the retailer’s success with a multi-tier racking system in its Dubai warehouse complex.

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29www.arabiansupplychain.com | SEPTEMBER 2010

CASE STUDY: WAREHOUSE RACKING

schemes, fl ooring and everything else,” he states with a proud smile.

Millions of dollars have been invested in the company’s Dubai Investments Park warehouse, which has been designed to accommodate a certain level of fl uctuation in stock dimensions, with diff erent zones for each category of furniture. “A large section of warehouse space – around 45% - is dedicated to living room furniture. Most of this furniture is sold as whole units, off ered in complete sets, so it’s quite voluminous in size. Th ere are other zones for bedroom furniture, dining room furniture, garden furniture, and children’s room furniture, amongst others,” explains Hedge.

To compliment the zone structure, Q Home Décor was determined to select the most suitable and effi cient solution for warehouse racking. Th e fi rst stage in the process was hiring the services of a specialist consultant to look into warehouse design and outline the space requirements. A drawing team was

also invited to design the racking, which involved a multitude of

stages before the end-result was fi nalised. “Th ere are

several important factors to take into consideration, such as the length of the beams and the weight

that would be placed on them,” continues Hedge.

“We eventually decided that a multi-tier solution with

adequate aisle space would be perfect for the warehouse, because this could lead to the optimisation of storage space and continuous airfl ow throughout the warehouse.”

After further thought, a ‘G+3’ structure was drafted for the multi-tier system, with the heaviest items being reserved for the ground level, and limits of 400 kilograms per square metre on the top level and 1000 kilograms per square metre on the fi rst and second tiers. “Another benefi t of the system was its potential to bolster the warehouse’s storage capabilities,” says Hedge. “Additional beams were provided for support, which meant we could increase the number of pick spaces.”

With a growing community of warehouse racking suppliers in the Middle East, Q Home Décor allocated a generous amount of time to research the market and consider the multitude of options available. “It’s such an important decision and involves a signifi cant investment, so we had to ensure the right solution was purchased. Th e

ithin the space of a few years, Q Home Décor has emerged as the latest success story for Middle East retail powerhouse Landmark Group, which

launched the company with much fanfare in 2006. Unlike its other furnishings outlet Home Centre, which focuses on aff ordable products for the mass market, Q Home Décor has opened a string of outlets in Dubai, Abu Dhabi, Al Ain and Bahrain with luxury items for a more elite clientele. And with 110,000 square feet of retail space in operation, plus more to come in the next year, it seems the brand has succeeded even in the midst of a global recession.

To support this growth, a large-scale storage complex was recently opened in the heart of Dubai Investments Park to optimise the supply chain of Q Home Décor. On a typical day, the warehousing facility will handle three to four packed 40-foot containers that arrive from countries such as China, India, Malaysia and Th ailand. For less experienced retailers, such volumes could result in operational chaos, but for the Q Home Décor team, there is undeniable calm in the warehouse environment. Indeed, despite the hard-working ethos of warehouse operators, the workers can still be heard laughing with each other over the continuous buzz of forklifts.

“We specialise in classic, contemporary and eclectic furniture and home accessories,” explains Shailesh Hedge, senior logistics and supply chain manager of Q Home Décor. “It’s our objective to provide a comfortable and peaceful shopping environment, with individually decorated room settings. To achieve this, our company will search the world for high-quality furnishings and pass the benefi ts of our sourcing expertise to customers in terms of reasonable prices.”

With more than 15 years of experience in the logistics industry, Hedge was recruited from Future Group in India, where he overlooked the supply chain of several retail outlets. His transition to the Middle East was smooth, although the executive was quick to identify the subtle diff erences in local purchasing habits. “Generally speaking, customers in this region will design their homes in accordance to the furniture purchased from our stores. So, we are basically the fi rst step in that process, after which decisions are made on the painting

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$544,000

Page 32: Logistics Middle East - Sept 2010

CASE STUDY: WAREHOUSE RACKING

30 SEPTEMBER 2010 | www.arabiansupplychain.com

the costs involved and the amount of time it would take. Everything was considered, from the time frame, even to the type of allot used in bolts. Once the details were submitted, we were able to commence the negotiations, which lasted a few rounds. Finally, the decision went to the board.”

With bated breath, Al-Futtaim Auto and Machinery Company (FAMCO), a member of one of the Gulf ’s largest privately-owned business houses, was selected. While the solution came with a higher price tag in comparison to some of the others, it was deemed the most suitable fi t to Q Home Décor’s requirements. “It was important that cost was not the determining factor in this decision, so we opted for a racking system that was a little more expensive. It was exactly what we wanted.”

In a market where costs are often at the top of a company’s priority list, especially with the global recession leading some companies to look at second-hand racking, the decision to choose FAMCO was indicative of Landmark Group’s business ethos.

“Th e warehouse was constructed with the intension for long-term use. So we need to use the best products that are available in the market. After all, we have employees in the warehouse on a constant basis, and we are adamant that our record of zero accidents is maintained. Th ere was never a question of

Landmark Group has a very professional attitude and looks at the bigger picture. It’s about the long-term benefi ts, rather than the short-term,” he continues. “Even a fi ve to six percent variation in racking space has the potential to create a dramatic loss on storage capability. So, all the diagrams were designed and presented to the racking providers, with decisions being made on the back of that. You have to consider where the loading docks and aisles are located, how the goods will be moved in the warehouse, and the proportion of racking area versus the common areas. Th e drawings must consider each of these before a racking provider can be selected.”

Th e market’s leading players were invited to submit their quotations for the racking project, with the total costs expected to reach over US$500,000.

“Finding the right partner was essential, so a lot of time was spent to look at the market, look at the vendors and invite their proposals. We needed a vendor that could provide the total solution, while proving their understanding of our requirements, down to the amount of screws that would be necessary,” states Hedge.

“At the end of the day, we did our homework and told them exactly what was required. We shortlisted to three or four of the biggest vendors and waited for their bids in terms of

Company name – Q Home DécorYear of inception – 2006Origin – United Arab EmiratesRetail outlets – 5 storesRetail space – 110,000 sq feetWarehouse – Dubai Investments ParkRacking system supplier – FAMCOSolution – Multi Tier ‘G +3’ SolutionRacking investment – Around US$544,000

Fact File: Q Home Décor

using second-hand racking,” concludes Hedge. “Now that the racking has been implemented and introduced into our supply chain operations, we know the right decision was made. Moving forward, we look forward to the continued success of the Q Home Décor brand, and continued developments with our warehousing and transportation in the Middle East.”

Q Home Décor searched the Middle East market for a racking solution that would offer space optimisation and adequate aisle space for its Dubai Investment Park warehouse

Page 33: Logistics Middle East - Sept 2010

DC_Gulf Business_FPC.ai 3/21/10 6:55:22 PM

Page 34: Logistics Middle East - Sept 2010

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Page 35: Logistics Middle East - Sept 2010

33

TOP 10 EMERGING LOGISTICS MARKETS

www.arabiansupplychain.com | SEPTEMBER 2010

As the uncertain economic climate continues to bog down established markets such as Europe and North America, the industry’s attention has turned to emerging markets as each contends for global recognition and

their respective share of the pie. Transport Intelligence explains which logistics markets are ripe with potential in the fi elds of

market attractiveness, compatibility and connectedness.

10 Th e global logistics industry has increased its

focus on Malaysia over the past decade, with the

country being recognised for its emergence as a

multi-sector economy with high growth potential.

It was also hailed for having ‘the best transport connectivity’ of all

fi nalists in the Transport Intelligence index. Based on the three

key indices used by the research company – market size and

growth attractiveness, market compatibility, and connectedness

– Malaysia’s aspirations to become a global transit hub are

rapidly coming into fruition, with companies such as UPS and DB

Schenker making large-scale investments there.

MALAYSIA

EMERGING LOGISTICS MARKETS

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TOP 10 EMERGING LOGISTICS MARKETS

34

9Th e international focus on Saudi

Arabia’s logistics industry has increased

in recent years, with the Kingdom

off ering a welcome solace for investors

that have been crippled by the global recession.

It’s little surprise, therefore, that instead of

tightening their purse strings, companies such

as TALKE Logistics and Kuehne + Nagel have

continued to pump millions of dollars into the

local market. Matching the private sector’s

enthusiasm, even the government has joined

the spending spree, funding the development of

several warehousing and transportation hubs

throughout the country, from the US$8 billion

Prince Abdul Aziz bin Mousaed Economic City

in the northern city of Hail to the $26.6 billion

King Abdullah Economic City in the western

coast of Rabigh.

SAUDI ARABIA

8While securing the eighth position in

this year’s list of emerging logistics

markets is a triumph for Egypt, the

country has a lot of potential to climb

the ranking in future years. It has plans to

development 24 industrial and logistics zones

by 2013, according to a report in the Arab

media last month, with a total investment of 40

billion Egyptian pounds (US$7 billion). Th ese

zones would be in the new industrial cities

that include the Tenth of Ramadan City, the

Sixth of October City, the Sadat City and Borg

El Arab City. And the country is even looking to

environmental sustainability, with Nile Cargo

recently announcing the delivery of two ‘green’

river barges.

7Over the past 20 years, the United Arab

Emirates has become the logistics hub

for the entire Middle East, so there

is little surprise that it ranks higher

than any other country from the region on this

year’s list. Of the small economies, Transport

Intelligence’s index shows that the UAE off ers

the greatest exploitable opportunities for

logistics companies. Its economic growth, plus

its established transport connections make this

country a fertile market for logistics activities

of all kinds. While projects in Dubai have

received the bulk of media attention - including

Dubai Logistics City and Jebel Ali Free Zone

- neighbouring emirates such as Abu Dhabi

and Sharjah are also investing heavily in their

logistics infrastructure.

EGYPT

UNITED ARAB EMIRATES

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TOP 10 EMERGING LOGISTICS MARKETS

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6Although the recession has impacted

growth within Turkey’s logistics

industry, a number of trade reports

have highlighted the country’s growth

potential between now and 2014. Th is is due

to a number of factors, including Turkey’s

location as a ‘bridge’ between Europe and Asia,

its programme of transport infrastructure

improvements and attempts to harmonise

with the EU’s transportation systems. Other

factors are the country’s encouragement for

large foreign players to form partnerships with

local transport and logistics companies, as well

as the expected medium-term strength in the

country’s economic performance.

5 A number of factors have helped to

fuel the growth of Russia’s logistics

industry in recent years, helping

to place the country in Transport

Intelligence’s top fi ve emerging markets in

2010. Growing investment by the government

and looming industrialisation led by the entry

of foreign players have all played a part in this

ranking. Contract logistics in particular is a

growth sector.

RUSSIA

TURKEY

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TOP 10 EMERGING LOGISTICS MARKETS

36

3 In third place, the government in

Indonesia has embraced a number

of regulation changes in recent years

to support the growth of its logistics

industry. For example, earlier this year the

country announced plans to open its logistics

potential to foreign investors by changing

rules that prevent foreign ownership in the

fi rst half of 2010. Revisions to the ‘negative

investment list’, which limits foreign ownership

in education, telecommunications, courier

services and logistics, creative industries,

and healthcare, are now being fi nalised by

government ministers and are expected to be

completed within two months.

OMAN

INDIA

BRAZIL

4Last month, research company BMI

predicted a recovery for Mexico’s

freight transport sector in 2010. In

particular, the country’s port sector

is expected to provide one of the industry’s

main growth stories this year, with the two

major terminals Manzanillo and Veracruz both

forecast to register double-digit increases in

throughput. Mexico’s airfreight sector is also

2Missing out on the top spot, Brazil

has been named the second strongest

emerging market in the world by

Transport Intelligence. Tax incentives

by the government, ongoing infrastructure

development and a rising industrial demand are

all helping to drive the growth in the country’s

logistics industry. In particular, the market

for contract logistics is forecast to grow by an

average growth rate of eight percent over the

next fi ve years.

1India claimed the top spot of the overall

rankings, scoring particularly high

in terms of market size and growth

prospects. Th e country’s logistics

industry is poised to become the next exciting

growth sector, following the rapid expansion

of the real estate and retail markets. Indeed,

research company Datamonitor forecasts

that the Indian logistics market will reach

a value of US$125 billion by 2010, increasing

from approximately $100 billion in 2007.

Th e Indian logistics market is experiencing

such impressive growth primarily due to the

manufacturing, real estate and retail boom

in the country. Approximately 50% per cent

of Indian companies are outsourcing logistics

services such as supply chain management and

contract warehousing, up from a mere 10-15%

at the start of the decade. All indicators point

to this trend continuing and accelerating. At

present, outsourced logistics account for only

one third of the total logistics market in India,

which is a signifi cantly lower proportion than in

developed markets. Th e potential for growth is

therefore considerable, opening a new horizon

of opportunities for the major global logistics

players to either enter the Indian market or

step up their operations in the country. Th is

potential has already been realised by a variety

of investors from the Middle East.

on course for a sizeable rebound in 2010, after

cargo volumes decreased by 28.9% last year in

freight tonne-km terms. In 2010, BMI forecasts

volumes to grow by 28.1% year-on-year to

233.1 million freight tonne-kilometres. Road

and rail freight, meanwhile, are expected to

experience a more marginal growth in keeping

with relatively narrow contraction in volumes

experienced in 2009.

MEXICO

INDONESIA

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HUMANITARIAN LOGISTICS

escribed as the worst natural disaster in Pakistan history, the country’s mountainous northwest region was ravaged by monsoon rains at the end of

July, with countless homes being destroyed, thousands being killed, and an estimated 20 million people impacted.

International organisations were fast in their response to the large-scale calamity, with the World Bank announcing a massive US$1 billion in interest-free funding to help Pakistan cope with the situation. In addition, there was mass unity within the global logistics industry, which off ered its expertise in the transportation and warehousing of relief shipments to the South Asian country. In particular, 3PL specialists in the Middle East have been hailed for their immediate response, with Barloworld Logistics UAE amongst the fi rst to launch a charity campaign, which involved the collection of donations from members of the public and company employees.

D

WELCOME RELIEFThe continued support of logistics providers in relief efforts remains vital in what’s been described as the worst natural disaster in Pakistani history.

“Th e logistics industry has traditionally played an important role in relief eff orts for natural disasters around the world, so when the situation in Pakistan occurred, we wanted to contribute our assistance, especially since a number of our employees are from the country,” explains Frank Courtney, chief operating offi cer for Barloworld Logistics UAE.

“We asked people to donate items for a container that was shipped to Pakistan, with the costs being borne by our company. As opposed to sending cash, there is a greater chance that clothes or supplies will actually reach the people that have been impacted.”

On a personal level, the coverage of fl ood victims on the television and print media was a motivating factor for Courtney to push the campaign forward. “I was watching a news report, where a man was looking for his son and noticed a foot sticking out the water. He identifi ed that as his son’s foot and since I have two children myself, I wondered how someone can deal with that,” he says.

“Your house has been washed away, you are walking through a river and discover your son’s body. How do you carry on? It was at that point that I realised we need to do something. If the contents of our container have the potential to help these people, then we’ve done a small part.”

Such emotions have been echoed by companies across the Middle East logistics industry, from small players to large-scale operators. “We sent a couple of full shipments last week. Both were twenty-foot containers packed full of clothes, blankets, tarps and tents. Given the circumstances, we see these actions as vitally important,” states Fazal Hussain, managing director of CPL Crown Logistics, who also arranged for a videographer to follow the journey of shipments, ensuring the items were delivered to people in genuine need.

Aramex also launched its own campaign in partnership with Emirates National Oil Company (ENOC), it subsidiary Emirates Petroleum Products Company (EPPCO)

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HUMANITARIAN LOGISTICS

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and Volunteers in Dubai (VID). Th e logistics company was able to collect donations from ENOC and EPPCO stations in the UAE, which were delivered to those aff ected by the fl oods. Th e initiative was part of Aramex’s corporate social responsibility (CSR) programme, which has previously supported the victims of Pakistan’s 2005 earthquake and more recently, the ‘Delivery Hope to Gaza’ campaign in 2008 and 2009.

“Aramex’s logistics network has helped people in disaster-affl icted areas around the world. We are committed to fulfi lling our responsibility in such diffi cult times,” comments Hussein Hachem, the company’s chief executive offi cer in the Gulf region. “Th e phenomenal response to our Support Pakistan Campaign last month is a testimony to the empathy for those who have suff ered irreparable loss and those who have been rendered homeless because of the natural disaster.”

After a brief assessment mission, global market-leader DHL also deployed an initial team of four logistics experts from its Middle East Disaster Response Team (DRT) to Pakistan last month. Th e team was able to create a provisional warehouse and helped Relief is being transported through sea and air routes

with the logistical handling of relief goods at the military part of Islamabad airport. Th e free-of-charge eff orts were provided in close cooperation with the UN, in particular with the Offi ce for the Coordination of Humanitarian Aff airs (OCHA) and the World Food Programme (WFP). Both, incoming goods of the WFP and bilateral contributions from governments were handled by the DHL Disaster Response Team on the ground. “Th e situation in Pakistan is very serious and we hope we can support the ongoing relief eff orts with our disaster response teams professionally as usual,” states Frank Appel, CEO of parent company Deutsche Post DHL, who allocated a further 20 to 25 DHL employees from diff erent business divisions to help unload pallet goods for further distribution.

Th e assistance of DHL and other logistics providers has been seen as essential for organisations such as the WFP to achieve its targets. “We have been sending in relief supplies through both sea and air, including mobile warehouses” explains Samir Sajet, Dubai-based aviation safety offi cer for the World Food Programme. “A variety of items were needed, from food and water, to shelter

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HUMANITARIAN LOGISTICS

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Aramex hosts UAE campaign and telecommunications equipment. Also, high-energy biscuits are very important and there have been a lot of requests for tarpaulins, mosquito nets, tents, blankets and hygiene kits. So we have been doing our best to get those goods in there.”

Arguably one of the most proactive humanitarian air freighters remains Maximus Air Cargo, which has historically been one of the fi rst to lend transport assets when called upon. And when considering that leasing a freighter can run upwards of $80,000, it’s no small gesture. “But we’re simply not doing enough,” says Fathi Buhazza, CEO of Maximus Air Cargo. “I want to challenge everyone in our industry to do more.”

Buhazza says that Maximus continues to push regular fl ights out of Dubai and Jeddah, to Karachi and Islamabad, and as the founder of Care by Air, a non-profi t initiative, Buhazza is spearheading eff orts to utilise empty space on fl ights to transport humanitarian aid. “Now is the time for social responsibility. Take the initiative and come forward. It will be to the benefi t of everyone,” he stresses. “Th e UAE is a place of goodness. From an organisational level, we need to be responsive when crisis strikes, implementing the same principles we do in business to humanitarian relief.”

Aramex launched a “Support Pakistan” disaster relief campaign in the United Arab Emirates last month. The logistics company - in partnership with Emirates National Oil Company (ENOC), its subsidiary Emirates Petroleum Products Company (EPPCO) and Volunteers in Dubai (VID) - offered to collect donations and provide transportation and other logistics support to areas of Pakistan affected by the monsoon fl oods. ENOC/EPPCO partnered with Aramex to support the initiative by providing collection points at major service stations across the country from 26th August - 5th September 2010. New clothes, blankets, tinned and packed foods, kerosene stoves and lamps, torches and any type of corrugated sheet (plastic, fi bre or steel) for temporary roofi ng were welcomed at Aramex collection points. “With approximately 20 million people affected by these fl oods, there is an urgent need to extend support to the people of Pakistan,” says Raji Hattar, Aramex chief sustainability offi cer. “In line with our commitment to support communities in such diffi cult times, Aramex will use its logistics expertise and network to facilitate the collection and transportation of aid to the people of Pakistan.”

Abu Dhabi-based Maximus Air Cargo pledged three free-of-charge cargo fl ights during the recent UAE Telethon for Pakistan

To prove his point, Buhazza pledged three free-of-charge cargo fl ights during the recent UAE Telethon for Pakistan, which was conducted over three days by the Red Crescent under the directives of His Highness Shaikh Khalifa Bin Zayed Al Nahyan, president of UAE. Th e fl ights will carry approximately 150 tonnes of vital material, including tents, blankets and drinking supplies. “Maximus is pleased to make this off er – it is something we wanted to do very much and most importantly to do on behalf of the UAE,” he concludes.

Frank Courtney, COO of Barloworld Logistics UAE

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PREVIEW: TOC MIDDLE EAST 2010

TOC Middle East 2010EVENT PREVIEWFollowing its success in other parts of the world, the maritime-focused trade show TOC makes its debut in the Middle East next month. So what can the logistics industry expect from this forthcoming two-day conference?

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PREVIEW: TOC MIDDLE EAST 2010

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T

TOC GLOBAL EVENTS

Event: TOC Middle East (20th-21st September 2010) at Muscat, Oman

Event: TOC Americas (9th to 11th November 2010) at Rio de Janeiro, Brazil

Event: TOC Asia (15th – 17th March 2011) at Tianjin, China

Event: TOC Europe (7th to 9th June 2011) at Antwerp, Belgium

OC Events Worldwide has

experienced a considerable

amount of success with its

maritime-focused conferences

around the world, with a series

of trade shows being held in locations such

Brazil, China and Belgium. From next month,

the event organiser will expand its global

portfolio with the launch of TOC Middle East,

which is scheduled to take place on 20th and

21st September at Shangri La’s Barr Al Jissah

Resort and Spa in Oman.

Th e two-day conference has already

received the stamp of approval from Port of

Salalah and will refl ect upon the signifi cance

of mass developments in the Middle East over

the past decade, with a particular focus on the

region’s increasing impact on international

shipping activities. “As the Middle East

continues to grow, it is becoming one of

the biggest success stories of the maritime

industry. Th e growth in the region has been

phenomenal and terminals are looking to

expand further to meet the growing demand

for goods,” comments Paul Holloway, event

director of TOC Events Worldwide.

“We feel the time is right to bring TOC to

the Middle East and off er terminal operators

in the region a high-quality, editorially

driven conference that has up-to-date market

information and addresses the issues that

matter most to ports in the region.”

Port development throughout the Middle

East is running at unprecedented levels as

governments and investors look towards

the future infrastructure needs of this

rapidly-growing region. Th e huge increase

in container throughput has already driven

more than US$38 billion in port investment

and a further $40 billion is ready to be poured

into port construction across the Arabian

Peninsula and neighbouring countries.

With a large percentage of the Middle

East’s maritime developments taking place

in Oman, Holloway believes the country will

make a perfect venue for TOC Middle East.

For example, the Port of Salalah is undergoing

rapid expansion and recently announced plans

to gradually expand its total quay length to 8

kilometres, while its capacity will grow to 15

million TEUs per annum. Further north, the

Port of Sohar is also transforming itself into a

major industrial and maritime centre, serving

not only the Sultanate, but neighbouring

countries such as the United Arab Emirates.

“By attending the event, visitors will be able

to connect with like-minded professionals,

engage in highly educational conference

sessions and discover new innovations on the

exhibition fl oor. Our wealth of experience and

ability to attract the most infl uential speakers

from across the globe means that TOC Middle

East will be the show for industry leaders in the

area to attend this year,” continues Holloway.

Th e conference sessions will aim to address

the concerns of the market, plus give a

focused insight into Middle East trade and the

sustainability of new terminals, according to

Neil Madden, conference editor of TOC Middle

East. “Trade in the Middle East has grown in

leaps and bounds, but has it been too much

too soon? Th e explosive growth in throughput

– from 15 million TEU to 24 million TEU in

just four years – has driven a huge amount of

port investment, but it is essential that local

economies can continue to develop and justify

this huge development. A key question on the

minds of all operators in the region is whether

local economies continue to consume and

generate suffi cient cargo to justify all of this

terminal space in the coming years,” he says.

“We have devised a conference programme

that will, amongst other things, discuss the

dynamics of port development in the Middle

East, off er a unique insight into the major

investments in the region and help terminal

operators with port master planning. We

will also off er delegates an insight into the

rebuilding of Iraq’s maritime infrastructure

and whether the Middle East is placing too

much focus on container capacity at the

expense of bulk and break-bulk handling,”

adds Madden.

TOC Events Worldwide is off ering 100

complimentary VIP delegate places to

terminal operators and shippers for the Middle

East event. More information is available at

http://www.tocevents-me.com.

Page 46: Logistics Middle East - Sept 2010
Page 47: Logistics Middle East - Sept 2010

The TOC Middle East conference will feature some of the region’s most infl uential speakers, including Warith Al Kharusi, chairman of the Oman Logistics & Supply Chain Association (pictured), Dr Khaled Bubshait, president of Saudi Ports Authority, Lars Oestergaard Nielsen, managing director UAE, Qatar and Oman at Maersk Line, Keith Nuttal, commercial manager of Gulftainer Group, and Iain Rawlinson, chief commercial offi cer at APM Terminals Bahrain.

As more and more countries in the region open their doors to global trade, the panellists will deliver insights, opinions and information on the latest and ongoing developments and innovations in the industry. Attendees to the conference will benefi t from informative presentations and discussions on key topics – covering everything from terminal operations and technology, planning, performance and automation through to looking at the workforce, sustainability and the environment.

SPEAKERS LIST

According to organisers, conference delegates at TOC Middle East will have a unique opportunity to network with exhibitors, speakers, VIPs and visitors alike. Beginning on the eve of the show with pre-conference drinks, the networking opportunities continue throughout the show with lunch and coffee on the show fl oor on both Monday and Tuesday, along with a poolside evening reception – sponsored by Moffat & Nichol. The evening of the fi nal day will feature the hugely-popular ‘Happy Hour’ where those attending can mingle for an extra our after the conference has closed to discuss ideas and opportunities.

NETWORKING OPPORTUNITIES

EXHIBITORS AND SPONSORS

CONFERENCE VENUE

45

PREVIEW: TOC MIDDLE EAST 2010

www.arabiansupplychain.com | SEPTEMBER 2010

A number of leading companies have already

signed up as exhibitors and sponsors of the

fi rst TOC Middle East Exhibition. Th e Port of

Salalah, Moff att & Nichol, ABB Crane Systems,

Cavotec, Camco Technologies, Prysmian,

Terex, Siemens, Konecranes, World Crane

Services and Gulftainer are just a selection of

the businesses that have chosen to showcase

their services and solutions to the high-level

visitors that will be present at the event. As

with every TOC event around the globe, there

will be a strong terminal operator presence

in Oman. APM Terminals, DP World and PSA

are all backing the show by agreeing to be key

partners, whilst the Port of Salalah is offi cial

sponsor of the fi rst TOC Middle East.

Th e exhibition fl oor will provide visitors

with the opportunity to gather market

information, develop strategic partnerships

and allow exhibitors to secure constructive

business deals. “Th e fi rst ever TOC Middle East

is set to be a hugely successful show and will be

a must attend event for business leaders and

terminal operators within the region. We look

forward to welcoming industry professionals

from across the Middle East to Oman in

September,” states Paul Holloway, event

director of TOC Events Worldwide.

Shangri-La’s Barr Al Jissah Resort and Spa is described by TOC Events Worldwide as “the

perfect venue for participants and accompanying guests”. Situated in Sultanate’s capital of

Muscat, the resort includes the sparkling bay of Al Jissah, inviting beaches and the dramatic

mountains and desert – an appealing escape once the conference is over.

Page 48: Logistics Middle East - Sept 2010

CONFERENCE PROGRAMME

PREVIEW: TOC MIDDLE EAST 2010

46 SEPTEMBER 2010 | www.arabiansupplychain.com

PRE-CONFERENCE RECEPTION | Sunday

19th September 2010

19:00-20:00 Attendees can meet and network

prior to the fi rst day of TOC Middle East at an

informal drinks reception to be held on Al

Bandar Beach

CONFERENCE DAY ONE | Monday 20th

September 2010

08:00-17:00 Registration desk open

08:00-09:00 Refreshments served

09:00-09:30 Conference opening and welcome

remarks with Kieran Ring, CEO of Global

Institute of Logistics

09:30-11:00 SESSION 1: REGIONAL ECONOMIC

DRIVERS - Th e economies of the Middle East are

undergoing fundamental change, which means

trade patterns, container fl ows and logistics

services are all set to evolve into signifi cantly

diff erent models from those of the past decade

SPEAKERS & PANELLISTS: Warith Al Kharusi

(Oman Logistics & Supply Chain Association),

Lars Oestergaard Nielsen (Maersk Line), Iain

Rawlinson (APM Terminals)

11:00-11:30 Refreshments served

11:30-13:00 SESSION 2: THE DYNAMICS OF

MIDDLE EAST PORT DEVELOPMENT - Cargo

terminal capacity is being added across the

Arabian Peninsula in a variety of diff erent

forms, from small to large facilities. Can future

cargo justify the massive scale of investment or

do some of the new ports risk being left with few

or no customers?

SPEAKERS: Dr Khaled Bubshait (Saudi Ports

Authority), Hassan Ali Al Majed (General

Organisation of Sea Ports, Bahrain), Saud

Tammah Al-Onaini (Gulf Stevedoring

Contracting Company), Mark Simmons (Moff att

& Nichol)

13:00-14:30 Lunch served

14:30-16:00 SESSION 3: MARKET SPECIFICS

& MAJOR INVESTMENTS - Speakers take a

walk through the major port developments

across the Middle East region. Which are the

most signifi cant? Which will change the game

in terms of design, scale, automation and

management practice?

SPEAKERS: Klaus Holm Laursen (Aqaba

Container Terminal), Keith Nuttall (Gulftainer

Group), Alireza Cheshm Jahan (Tidewater

Middle East)

16:00-16:30 Refreshments served

16:30-18:00 SESSION 4: THE GEO-ECONOMIC

CONTEXT - Th e Middle East region is not

alone in developing new port capacity to

capture a share of passing East-West container

transhipment. From Sri Lanka to the Horn of

Africa, other regions pose serious competition,

particularly in terms of serving the Indian

subcontinent, the Southern Indian Ocean and

Central and Southern Africa.

SPEAKERS: Dr Parakrama Dissanayake (Aikten

Spence Maritime), Karl Socikwa (Transnet Ports

& Terminals), SN Srikanth (Hauers Associates)

18:00 END OF CONFERENCE DAY ONE,

FOLLOWED BY NETWORKING RECEPTION

CONFERENCE DAY TWO | Tuesday 21st

September 2010

08:00-17:00 Registration desk open

08:00-09:00 Refreshments served

09:15-10:45 SESSION 5: PORT MASTER

PLANNING - Port master planning encompasses

a range of activities – from creating port or

shipyard layouts to examining the complex

interaction of national and international

economics, and the eff ects these have on the

demand for facilities. Which skills and services

are required to bring a port plan from feasibility

to fi nal handover?

SPEAKERS: Ian Chadney (Moff att & Nichol),

Susanne Milberg (HPC Hamburg Port

Consulting), Martin Mannion (Scott Wilson

Strategic Consultancy)

10:45-11:15 Refreshments served

11:15-12:30 SESSION 6: ENVIRONMENTAL

IMPACT MANAGEMENT - Investing in

environmental impact management is a

necessity for the modern port corporation

SPEAKERS: Juergen Strommer (Cavotec Middle

East), Shahrin Osman (DNV Dubai), Richard

Marks (Royal Haskoning)

12:30-14:00 Lunch served

14:00-17:00 SESSION 7: TERMINAL

AUTOMATION AND TECHNOLOGY - No

longer purely the preserve of the high-end mega-

terminal, the costs of robotic container handling

and process automation technology are falling

in real terms, opening up new possibilities to a

wider terminal demographic

SPEAKERS: André Lingemann (HPC Hamburg

Port Consulting), Michael Richter (Moff att

& Nichol), Howard Wren (Jade Software

Corporation), Allen Th omas (APS Technology

Group), Udo Niessen (Inform), Fredrik Johanson

(ABB Crane Systems)

15:30-16:00 Refreshments served

17:00 END OF TOC MIDDLE EAST 2010

Page 49: Logistics Middle East - Sept 2010
Page 50: Logistics Middle East - Sept 2010

SEPTEMBER 2010 | www.arabiansupplychain.com

ASK THE EXPERT

48

POST-RECESSION DANGERS FOR YOUR SUPPLY CHAIN OPERATIONSTh e worst of the recession appears to be behind us. However, many companies must still face their greatest danger – stabilisation of their supply chain. Accordingly, there is increasing demand for professional supply chain risk management that can be used for identifying the major risks facing your business and actively taking decisions to reduce your exposure. Generally speaking, its not ‘acts of god’, accidents or even terrorism that lead to the failure of supply chains. In fact, the long-term dangers are much more ordinary than that and are wrapped in the day-to-day processes all the way along the supply chain – from the sourcing of materials at the raw material suppliers through to the delivery of fi nished product to the end-customer. THE IMPORTANCE OF INDENTIFYING TRUE RISKS TO YOUR SUPPLY CHAINTh e real risks in a supply chain are often things ultimately in our sight and in our control, such as the complexity of the supply base, longer and leaner supply chains from global sourcing decisions, and expansion of the product range, as organisations seek to introduce new off erings for their customers. Combine this with external factors such as volatility of demand, currency fl uctuations and long-term scarcity of commodity raw materials and you have a melting pot of potential risk on a global level.

HOW THE RECESSION HAS PROVED THE FRAGILE NATURE OF LOGISTICSIn rosy economic periods, when supply is plentiful, disruptions in the supply chain are readily overcome. But in periods of economic drought, supply chains can become more fragile and often in an unnoticeable way. As customers turn off the tap on demand, cautious suppliersalso reduce their stock levels – focusing on the essentials of protecting cash and

freeing their business from expensiveworking capital. When demand quickly returns to a normal level, there can be a shortfall in supply – particularly if the downturn caused some suppliers to go out of business completely, resulting in a permanent reduction in supply capacity. An international study conducted last year by the Capgemini consultancy suggested that two out of three supply chain managers saw their work as being most greatly aff ected by the economic downturn.

LOOKING AT THE BIGGER PICTURETh ere are reasons why companies are devoting greater attention to supply chain risk management. Th e objective here is building risk management into the day-to-day processes of managing your supply chain. You can’t eliminate risk – but you can recognise it and take practical steps to mitigate against it, which will minimise your risk exposure. As an example, take the leading ‘risk fear’, which is supplier failure. In this regard, it is not just a question of examining those who directly supply

product to you. You need to look further back to those who supply product to your suppliers and even further to the base commodity materials at the furthest reaches of your supply chain. If there are only one or two places globally that your suppliers can source their primary raw materials and there is multiple global demand for those materials, then you have a source of risk. When you have identifi ed your risk source, you can take appropriate steps – such as agreeing long-term capacity commitments with the raw material supplier to safeguard your supply. Another example is analysing your cost base for transportation, fuel and energy costs and their infl uence on your total product cost. Last year provided a sharp reminder about the impact of oil pricing and called into question the dependence on far eastern supply, with savings in manufacturing being eroded by upward swings in transportation costs.

A HIGH-PROFILE EXAMPLE OF RISK MANAGEMENT FOR SUPPLY CHAINSA well-documented example of an aggressive supply chain risk management strategy even made it into the headlines of the international press. In the build up to the launch of its iPod Nano, Apple secured long-term supply of the critical component, fl ash memory – eff ectively preventing its rivals from pursuing the launch of their own devices. Strategies such as these cannot, however, be managed without the corresponding IT support. Whilst risk management is a business process, it is underpinned by information and strong IT. Supply chain solutions such as those from Infor, for example, can be used for making projections as precisely as possible and generating both worst-case and best-case scenarios – the simulations helping to identify sources of risk and supply failure. Supply chain risks are often hiding in plain sight. But with the right tools, risks are more manageable than you think.

QUESTION: Has the economic downturn increased the regional need for supply chain risk management?

RISKYBUSINESS

This month’s column was written by Andrew Kinder, director of solution marketing at supply chain specialist Infor.

Page 51: Logistics Middle East - Sept 2010
Page 52: Logistics Middle East - Sept 2010

50 SEPTEMBER 2010 | www.arabiansupplychain.com

FACTS & FIGURESAir cargo regional & international statistics

Knowledge of cargo statistics is essential in 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 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

EMIRATES SKYCARGO FUEL PRICE INDEX

250

290

330

370

410

450

11 J

un

10

18 J

un

10

25 J

un

10

02 J

ul 1

0

09 J

ul 1

0

16 J

ul 1

0

23 J

ul 1

0

30 J

ul 1

0

06 A

ug

10

13 A

ug

10

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 12 months. Cargo is measured as loaded and unloaded freight and mail in tonnes (Source: Airports Council International)

DUBAI INTERNATIONAL AIRPORT: CARGO STATISTICS

June

09

July

09

Aug

09

Sept

09

Oct

09

Nov

09

Dec

09

Jan

10

Feb

10

Mar

10

April

10

May

10

0

50000

100000

150000

200000

250000

25 June401

18 June399

16 July387

06 August413

30 July391

MONTHLY AIR CARGO REPORT: EUROPE REGION*

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

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

Amsterdam (Netherlands) 130,974 27.3 603,129 20.3

Brussels (Belgium) 38,484 15.6 185,920 5.9

Cologne (Germany) 49,514 13.3 237,157 9.7

Frankfurt (Germany) 207,521 38.0 912,290 30.9

Istanbul (Turkey) 40,828 40.5 187,938 39.1

Leipzig (Germany) 50,784 27.0 238,490 26.4

London Heathrow (UK) 142,568 35.2 618,749 21.7

Luxembourg (Luxembourg) 68,786 35.4 288,398 14.6

Paris (France) 189,000 31.3 832,770 16.0

Vienna (Austria) 22,718 39.9 98,859 35.6

Warsaw (Poland) 4769 24.1 22,139 13.4

Zurich (Switzerland) 26,724 23.3 128,278 17.2

MONTHLY AIR CARGO REPORT: AFRICA REGION*

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

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

Accra (Ghana) 4712 16.6 18,731 -7.6

Addis Ababa (Ethiopia) 10,868 104.5 24,665 -8.2

Algiers (Algeria) 1649 -32.3 7575 -26.9

Antananarivo (Madagascar) 1064 17.2 4772 5.5

Cairo (Egypt) 25,145 1.5 132,637 9.3

Casablanca (Morocco) 4671 -6.2 21,703 -15.4

Dar Es Salaam (Tanzania) 1374 -4.4 6345 -14.4

Djibouti (Djibouti) 554 n/a 2745 -35.2

Harare (Zimbabwe) 1883 10.0 8875 10.3

Johannesburg (South Africa) 30,150 57.8 124,321 23.8

Libreville (Gabon) 1693 0.9 7541 -9.7

Saint-Denis (Reunion) 2862 12.8 13,804 13.8

Tunis (Tunisia) 2252 17.7 9121 18.6

Page 53: Logistics Middle East - Sept 2010

51www.arabiansupplychain.com | SEPTEMBER 2010

*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).

INDUSTRY STATISTICS

For up-to-datefi gures, visit:

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MONTHLY AIR CARGO REPORT: MIDDLE EAST REGION*

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

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

Abu Dhabi (UAE) 39,221 19.4 174,729 21.6

Amman (Jordan) 7483 -9.6 35,405 7.4

Bahrain (Bahrain) 27,749 -0.5 139,674 -0.5

Beirut (Lebanon) 6832 8.5 31,338 8.2

Dubai (UAE) 195,221 31.7 918,329 27.1

Fujairah (UAE) 3142 1.2 14,745 2.2

Kuwait (Kuwait) 17,609 13.3 87,354 17.6

Muscat (Oman) 8742 77.8 39,586 67.7

Ras Al Khaimah (UAE) 39 n/a 1007 -9.3

Sharjah (UAE) 27,370 23.2 172,175 15.7

MONTHLY AIR CARGO REPORT: NORTH & SOUTH AMERICA*

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

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

Anchorage (USA) 471,542 135.1 1,260,911 88.7

Buenos Aires (Argentina) 18,127 62.2 77,697 39.0

Chicago (USA) 125,262 51.9 552,817 39.9

Los Angeles (USA) 152,531 26.8 704,643 26.0

Memphis (USA) 326,359 9.8 1,601,680 8.8

Mexico City (Mexico) 34,123 31.7 154,781 24.8

MONTHLY AIR CARGO REPORT: ASIA PACIFIC REGION*

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

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

Ahmedabad (India) 2389 31.1 11,305 34.9

Bangalore (India) 18,356 46.8 84,403 37.0

Bangkok (Thailand) 110,338 31.5 524,455 39.1

Calcutta (India) 10,699 36.4 48,025 31.7

Colombo (Sri Lanka) 14,273 23.4 68,288 28.6

Fukuoka (Japan) 19,402 3.3 101,141 7.9

Hong Kong (China) 370,209 41.6 1,641,269 36.3

Jakarta (Indonesia) 43,267 14.8 212,822 19.0

Kuala Lumpur (Malaysia) 60,379 28.6 280,558 28.8

Manila (Philippines) 35,386 32.4 170,855 51.4

Mumbai (India) 57,356 23.5 269,571 23.4

Osaka (Japan) 61,214 34.3 297,875 37.3

Seoul (Korea) 9775 -0.1 60,220 -5.9

Shanghai (China) 282,379 48.1 1,308,593 53.5

Singapore (Singapore) 155,350 14.5 739,321 16.9

Taipei (Taiwan) 159,318 52.6 723,883 62.4

Tokyo (Japan) 186,746 30.7 893,202 38.0

Page 54: Logistics Middle East - Sept 2010

52 SEPTEMBER 2010 | www.arabiansupplychain.com

FUJAIRAH BUNKER FUEL PRICE INDEX

12 S

ept 0

9

12 O

ct 0

9

12 N

ov 0

9

12 D

ec 0

9

12 Ja

n 10

12 Ja

n 10

12 F

eb 1

0

12 M

ar 1

0

12 A

pr 1

0

12 M

ay 1

0

12 Ju

n 10

12 Ju

l 10

12 A

ug 1

0

275

350

425

500

FACTS & FIGURESSea freight regional & international statistics

INDUSTRY STATISTICS

BUNKER FUEL PRICE INDEX*

PORT / COUNTRY IFO380 IFO180 MGO MDO

Busan (South Korea) 470 480 710 700

Cape Town (South Korea) n/a 541 738 n/a

Fujairah (UAE) n/a 482 709 482

Hamburg (Germany) 462 462 462 n/a

Houston (USA) 453 473 685 655

Istanbul (Turkey) 440 463 n/a n/a

New Orleans (USA) 491 511 732 n/a

Piraeus (Greece) 474.5 496 690 n/a

Rio de Janeiro (Brazil) 456 479.5 716 n/a

Rotterdam (Netherlands) 445.5 472 668 n/a

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

Singapore (Singapore) 453 461 657 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 August 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 TYPEJUNE 2010 YEAR-TO-DATE

Discharged Loaded Discharged Loaded

Bulk cargo (solid) 2,388,344 661,223 11,247,540 3,425,631

Bulk cargo (liquid)* 265,914 4,298,251 2,080,607 25,154,126

General cargo 675,057 50,645 3,896,944 292,477

Containers (in tonnes) 2,613,785 1,888,030 14,749,918 10,927,399

Ro-Ro and vehicles 159,659 19,014 834,552 89,226

Livestock 6327 n/a 57,772 n/a

TOTAL 6,109,086 6,917,163 32,867,333 39,888,859

TOTAL PORT THROUGHPUT 13,026,249 72,756,192

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 Dec466

12 Jan480

12 Mar459.5

12 Jul450

12 May475

12 Oct444.5

CONTAINERS (TEU) 2010 2009

June Year to date June Year to date

Discharged 235,906 1,306,577 191,445 1,059,270

Loaded 220,725 1,258,222 181,597 1,060,931

TOTAL 456,631 2,564,799 373,042 2,120,201

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.

Jul 0

9

Aug

09

Sep

09

Oct

09

Nov

09

Dec

09

Jan

10

Feb

10

Mar

10

Apr 1

0

May

10

Jun

10

0

3 million

6 million

9 million

12 million

15 million

Page 55: Logistics Middle East - Sept 2010
Page 56: Logistics Middle East - Sept 2010

01 02030405

1116212627282930

2223242517 18 19 2012 13 14 15

06 070809 10011 02203TRADE EVENTS

54 SEPTEMBER 2010 | www.arabiansupplychain.com

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-owner 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

30th November 2010AVIATION BUSINESS AWARDSHundreds of fi gureheads from the Middle East aviation industry will gather at the Emirates Palace hotel in Abu Dhabi this year for the annual Aviation Business Awards. Inaugurated in 2007, the ceremony has established itself as the ultimate celebration of achievements within the region’s booming aerospace sector over the past 12 months. Th is year’s awards will include 15 categories in total, covering the airline, airport and cargo sectors, together with a variety of supporting niches. VENUE: Emirates Palace, Abu DhabiEMAIL: [email protected]: www.arabiansupplychain.com

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 aff ecting the domestic market’s development. Delegates will have the opportunity to network with their colleagues, exchange valuable information and predict the newest opportunities expected to arise. An awards ceremony will also take place to coincide with the event on Monday 11th October.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 event of its kind in the Middle East, this year’s installment, which has a target audience of 500 senior executives from Europe, the Middle East and Africa (EMEA), is expected to attract around 70 exhibitors from around the world. Topics will include logistics, shipping and container ports and ongoing market challenges.VENUE: Hilton Hotel, Alexandria, EgyptEMAIL: [email protected]: www.transportevents.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. VENUE: Dubai, United Arab EmiratesEMAIL: [email protected] WEBSITE: www.sclgme.org

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 on Sunday 24th October 2010. Th e session is aimed at trade professionals from across the region, in addition to students that have enrolled on supply chain programmes. A host of topical issues will be tackled by speakers from the Middle East, in addition to countries such as Holland and the United Kingdom.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

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 and Exhibition CentreEMAIL: [email protected] WEBSITE: www.sitldubai.com

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, SPAN Group, Ehrhardt + Partner Solutions, Exactus and Loc8.VENUE: Dubai Convention and Exhibition CentreEMAIL: [email protected]: www.materials-handling-dubai.com

Page 57: Logistics Middle East - Sept 2010
Page 58: Logistics Middle East - Sept 2010

FACE TO FACE

56 SEPTEMBER 2010 | www.arabiansupplychain.com

You were appointed as the general manager of EPS in Dubai last month. What attracted you to the position?A number of factors made this position appealing for me. For starters, looking at the passion, commitment and eff ort of the Ehrhardt family into building this subsidiary has increased my confi dence that the board and myself will work asan excellent team and achieve our goals for the future. Although the environment will be challenging and there is a lot of hard work ahead for the entire team, I know we can develop our brand to where it belongs, as a true market leader.

In consideration of this challenging environment, what are your forecasts for the company’s performance in 2010?Following the opening of our regional headquarters in Dubai Logistics City, we have doubled the size of our team and introduced a lot of experience in sales, marketing and engineering. Th e next stage is bringing EPS closer to our clients, listening to their needs, and off ering the

right solution. We need to exceed their expectations and that will involve a period of integration, skills coaching and training on the products to build up competence and performance. By the end of this year, the right person has to sit in the right seat and be effi cient in supporting customers.

As the general manager in Dubai, what strategies will you bring to the table so that EPS is able to achieve its goals?First of all, we need to look at our approach today. Are we able to pass the message of how our service and products diff er to our competition? How much valuable time do we spend with our customers? I am determined to increase the number of customer visits per day, while reducing non-valuable time in the car and the offi ce. As mentioned before, EPS leaders will spend a lot of time in coaching and developing the team members. We will work with research companies to get the right information on new warehouses in the region and do the needful marketing steps to create brand excellence.

What impact has the global recession had on the company’s market position in the United Arab Emirates? We cannot deny that the UAE has been through a diffi cult time in the past couple of years and the market has been under more and more pressure. However, despite these challenges, I believe that Ehrhardt + Partner Solutions has been heading in the right direction. We have opened the biggest logistics centre in the region, where people can learn about our various software and technologies. In addition, they can discover the latest techniques to grow in the supply chain industry and that is something that will maintain our position in the market, because we are not only a company, but also an instrument of

BRAND NEWPARTNERSHIPRecently appointed as the general manager of Ehrhardt + Partner Solutions (EPS) in Dubai, former BITO executive Christian Gebler has grand ambitions for the logistics technology company.

FACE TO FACE INTERVIEW

knowledge to help bolster the market strategies of customers. Th at will help to keep us moving forward in the region.

With so much competition in the market, what type of contracts have been awarded to EPS since the company launched its operations in the region?With our customers in the Middle East, we have a combination of big companies and small companies. For example, there are large-scale businesses, such as Hellmann Logistics and the EMKE Group, which operates the successful Lulu Group chain of supermarkets. At the same time, we have attracted the business of smaller companies in Oman, which are growing and becoming more organised with our warehouse planning and consulting. Th ey have accepted that change is essential in order to growth as a business over here.

EPS hails from the European market and the bulk of your career has been spent in Europe. What are the main differences between there and the Middle East?In Europe, almost every country knows Ehrhardt + Partner Solutions. In Germany, for example, we have more than 20 years experience and don’t need to worry too much about marketing, which is great. In Dubai, the challenge is bigger. First because logistics as a subject has to be explored further here. I often refer to the UAE as a beautiful diamond that must be carefully cut to shine and show its beauty. Th e country is still in the phase of being discovered - there is a lot of potential, but the work is much more challenging than anywhere else in the world. Th at is what makes us proud, because Ehrhardt + Partner Solutions has played its own role in the growth of the Middle East logistics industry and will continue to support all developments in the future too.

Page 59: Logistics Middle East - Sept 2010
Page 60: Logistics Middle East - Sept 2010

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