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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
22 Warehousing Promoting Sharjah’s image as warehousing hub Emirates Industrial City Mohammad Al Hazzaa, Director General of Emirates Industrial City (EI City) "doesn’t believe in propaganda." So when asked about the recent developments on the anticipated mammoth industrial city unveiled by developer Al Hanoo Holding Company in late 2004, the composed Director General took The LINK in a virtual tour to the foreseen ‘newest business address’ in the UAE. Imagine this: a multi-billion project, made up of 83 million square feet of land tailormade for any type of business needs; with a tax-free environment (no corporate, income, export and re-export tax); low import duties (maximum of 5 per cent); free transfer of currency; comprehensive and modern road network; reliable power distribution network; abundant water supply; modern telecommunication; and availability of natural gas. Like any other? Think again. Multi-purpose, mixed-use "The whole project is divided into eight sectors, six of which are meant for multipurpose requirements. This means, there is a degree of flexibility. Different investors, from light to medium industry, such as food processing, packaging, furniture, light chemical industries, workshops, etcetera – they could move in and build their factories," Al Hazaa explained. Several investors have already pre-booked because of our flexible rates and conditions, plus we truly believe that our project is ready to go. “ ” Located in Al Saja’a – Al Khawaneej Highway, Sharjah, Al Hazaa believes that one of the many advantages of EI City is its strategic location. "Emirates Industrial City is only 5 minutes away from Sharjah airport, 30 minutes away from Dubai airport; and is positioned at a strategic location serving the major sea and air ports in the area, beside some other destinations in the UAE." More importantly, though, Al Hazzaa emphasized the project’s "attractive and transparent rates." In fact, allocations in two of the industrial city’s eight sectors are already sold out (Sectors 5 and 7). There are currently over 300 companies in operation at Sectors 5 and 7; and the sale of lots is in progress for Sector 2. In a previous report, EI City Chairman, Sheikh Abdullah Al Shakra, revealed that "investors in Emirates Industrial City Mohammad Al Hazzaa Director General, Emirates Industrial City earned an 87 per cent return on investment within six months of the inauguration of the project." Meanwhile, Sectors 6 and 8, according to Al Hazzaa, are dedicated for warehousing, logistics operations, and other support services. "The total area of the warehousing project is 23 million square feet. A total of 425 units could be built on that site. Each building unit could be sub-divided into 2 units, so practically, that project could accommodate up to 4,000 tenants," Al Hazzaa related. The design of the warehouse project, explained Al Hazzaa, was made "to be accessible from at least two main roads for flexibility, so the trucks could move and go around, without causing traffic jam." Moreover, the buildings in the units "could have a mezzanine, for whatever Supply Chain & Logistics Group | www.sclgme.org
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Page 6 and 7: 12 About SCLG SUPPLY CHAIN & LOGIST
Page 8 and 9: 14 SCLG - A Round Up SUPPLY CHAIN &
Page 10 and 11: 16 Retail Lisa Dale discusses the e
Page 12 and 13: 18 Logistics Positioning Dubai as w
Page 16 and 17: Warehousing 23 purpose the investor
Page 18 and 19: Cover Story 25 of economical contri
Page 20 and 21: 28 Special Report KCT, Sharjah Term
Page 22 and 23: 30 Special Report Thriving under so
Page 25 and 26: Special Report 33 Reclaiming Oman
Page 27 and 28: Special Report 35 attract world lea
Page 29 and 30: Special Report 37 that, the nationa
Page 31 and 32: Special Report 39 ACT, after privat
Page 33 and 34: Special Report 41 joint ventures wi
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Page 38 and 39: Market Watch 47 TNT launches ‘Mob
Page 40 and 41: Market Watch 49 FAMCO voted ‘Best
Page 42 and 43: 52 KSA Development Promoting knowle
Page 44 and 45: 54 UAE Infrastructure Dubai gets hi
Page 46 and 47: 56 Transportation DHL Exel Supply C
Page 48 and 49: 58 Technology G-HANZ, CipherLab for
Page 50 and 51: 60 Product Watch Staff on-time and
Page 54 and 55: 64 Case Study Juma Al Majid ‘marr
Page 56 and 57: 66 Legal Outlook Maritime law in th
Page 58 and 59: 68 Insurance Business Interruption
Page 60 and 61: Human Resources 71 Despite the cost
Page 62 and 63: Trade and Economy 73 through the fr

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