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20 Logistics
efficiently as possible to service
their customers."
"Because you’ve got the port and the
airport within 10 kilometers of each other
and you’ve got this all in one customsbonded
area, you’ve got the most
advantageous situation you can possibly
have. DLC connects the port, the airport,
and the road network to create
an integrated logistics platform,"
Proffitt explained.
Spread over 25 kilometres, DLC is a key
component of the world’s first truly multimodal
transport platform under a single
customs-bonded and free zone area.
"Most logistics service providers setting
up in Dubai realise that together with their
existing customers they can use the
logistics platform to develop the logistics
“
We are not after
growth at any cost.
We are very focused
on what we want in
DLC. Our objective
clearly is to develop
the logistics supply
chain community,
which has an element
around the air freight
industry.
”
business in the greater region and also use
the emirate as a hub for transcontinental
supply chain business, linking Asia with
African and European markets. This is the
unique business proposition of DLC,"
Proffitt said.
Due to be operational at the end of 2007,
DLC, which is the first phase of the huge
World Central project, will eventually
combine all required transport modes with
a logistics zone with ample space for
warehousing and other logistics services,
such as order fulfillment, merge-in-transit,
postponement-in-assembly, kitting and packing.
Target clients
Over a hundred companies have reserved
space in DLC already, with about 3 million
square meters of land. But, according to
Proffitt, "we are not after growth at any
cost. We are very focused on what we
want in DLC. Our objective clearly is to
develop the logistics supply chain
community, which has an element around
the air freight industry."
This way, Proffitt explained, "we can
actually ensure that the companies within
the DLC are all supported and that they
can continue to grow and develop and
that they’ve got space to grow."
"It’s not about how quick we can fill this
up, it’s about providing the platform, so
that the companies can expand, but also
new companies can come in. So it’s not a
rush to fill the space, it’s about getting the
right companies and the right profile.
We’re aiming to bring in all the support
industries around the logistics community
as well," Proffitt stressed.
Moreover, Proffitt related that India is an
important market for DLC in terms of
transit cargo to Dubai, but "we are taking
the presentation around the world to
make sure we explain to the logistics and
air freight communities what we’re
developing, and it’s their decision
whether DLC is right for them or not. We
believe we’ve got a very strong value
proposition but each company has to
decide for itself whether DLC is the right
place for them to operate from."
With regard to WTO and the Customs
Union, Proffitt feels that "it will just allow
Dubai to continue to grow."
"Dubai will be a central point for the
region. Not the only point. But if you look
geographically, there are only certain
places in the world that could be major,
significant hubs. These could be hubs for
specific reasons in different countries, can
be different value propositions. But main
hubs, there could only be a few.
Netherlands in Northern Europe;
Singapore and Hong Kong in Asia. Dubai
is in that league," Proffitt said.
Challenges
Proffitt related that since he joined DLC,
"it has been a very busy and challenging;
but also very interesting, worthwhile and
fruitful."
He continued that his main motivation in
joining DLC is the once-in-a-lifetime
opportunity to be part of such a big project.
"I can’t conceive there will be any projects
on the scale as big as DLC. There are other
logistics cities but given the vision of this
project, and looking at it 50 years from
now, where it would take Dubai as a hub –
makes the project very special."
And although Proffitt is excited about the
future of DLC, he is clear on the challenges
of the present. "It’s really just making sure
that we develop the platform successfully,
that we allow the customers to start their
business. We need to get our platform to
work efficiently from day one. And we
need the new airport opened for cargo
flights," he related.
Moreover, despite reports of traffic
dominating media headlines over the past
months saying that the ports and streets of
Dubai are getting too much clogged,
Proffitt believes that street transportationrelated
concerns do not threaten Dubai’s
place as a logistics hub of choice, pointing
out that, "one cannot underestimate
the government and the traffic authorities
and their efforts in terms of
providing more road space and to
accommodate vehicles."
"Traffic is obviously an element – but to
see it as threat, no. The great thing about
DLC is that you’ve got the sea and air
ports together so it will not leave the
airport, but it will transit through. The key
value proposition of a hub is a passthrough
business – it’s not into Dubai or
the UAE, it’s going into the greater region.
The creation of DLC will actually help the
traffic situation. If you look at the GCC,
most of the traffic from JAFZA and DLC
will go through to Iraq, to Saudi – it will
go up country," Proffitt said.
Supply Chain & Logistics Group | www.sclgme.org