Material Handling Equipment Material Handling Equipment - SCLG

10 Years 

Celebrating 

THE OFFICIAL PUBLICATION OF THE SUPPLY CHAIN & LOGISTICS GROUP 

as the voice of 

the Industry 

Reaching Out: Getting a handle on 

Material Handling Equipment 

Inside... 

24 | 5th ESEA AWARDS 

26 | TRANSWORLD GROUP 

35 | INDIAN PORTS INVESTMENTS 

37 | ARMENIA RAIL-ROAD PLAN 

Top performers adopting its 

e-services feted by Dubai Trade 

It is celebration time as company 

commemorates its 35th Anniversary 

Union Shipping Ministry announces 

massive investment plans in Indian ports 

Dubai-based Rasia is a pivotal 

player in the project 

www.sclgme.org Vol. 10 : Issue 01 : February 2013

We will find the ideal storage solutions for you 

Efficient space utilisation using the right storage solutions 

can effectively increase pallet capacity by up to 100%! 

Contact us, we will show you how to compress your storage 

with a cost-effective and efficient storage system. 

P: +971/4/8048 100 · E: info@ssi-schaefer.ae · www.ssi-schaefer.ae

24 | 5th ESEA AWARDS 


e-services feted by Dubai Trade 

26 | TRANSWORLD GROUP 

It is celebration time as company 

commemorates its 35th Anniversary 

35 | INDIAN PORTS INVESTMENTS 

Union Shipping Ministry announces 

massive investment plans in Indian ports 

as the voice of 

the Industry 

37 | ARMENIA RAIL-ROAD PLAN 

Dubai-based Rasia is a pivotal 

player in the project 

Editor’s Note 

Edition 01 | Vol. 10 | February 2013 


10 Years 

Celebrating 

Changing Logistics Landscapes 

There is little doubt the logistics landscape is changing globally. The industry was rattled 

and remains volatile post 2008 until the present time. A little too early for prognosis and 

crystal ball gazing I suppose for 2013, but indications are there is optimism and hope 

tinged with a silver lining in the horizon. We’ll see. 

Inside... 

Editorial, Content Provision 

& Print-Production 

PO Box 76575 

Dubai - United Arab Emirates 

Tel : +971 4 296 37 90 

Fax: +971 4 296 37 92 

Email: info.futurepathme@gmail.com 

Director 

Khalid Al Falasi 

General Manger 

S. Punyamurthy 

murthy.futurepath@gmail.com 

Editor 

Malcolm Dias 

malcolm.futurepath@gmail.com 

Art / Production 

Sulaimani Masarrat Fatima 

Advertising 

Reaching Out: Getting a handle on 


www.sclgme.org Vol. 10 : Issue 01 : February 2013 

P.O. Box: 49784 

Dubai - United Arab Emirates 

Tel: +971 4 3978847 / 3795678 

Jason Verhoven 

jason@signaturemediame.com 

Deepak Chandiramani 

deepak@signaturemediame.com 

Developments in the SC&L trade are emerging fast and furious. So much to write about, 

so much to report on…. In this issue of The Link we talk to a quartet of Dubai-based 

companies on material handling equipment on what it implies to be in the business, 

the current scenario and their take on the industry. The head honchos from SSI Schaefer, 

FAMCO, Ehrhardt + Partner & GENAVCO were contacted to get a first-hand report on the 

state of the industry. 

A scholarly analysis of the Indian Logistics Market by Srinath Manda, Program Manager, 

Transportation and Logistics Practice, Frost & Sullivan provides insights into how the 

sector is developing in the emerging powerhouse that is India, where a lot of attention 

is now being lavished upon thanks to its inclusion among the BRICS super elite group 

of countries. Staying with India, the country’s Union Shipping Ministry has recently 

announced ambitious investment plans and earmarked over USD $ 2 billion to develop 

and upgrade ports along its vast 5,500-kilometre peninsular coastline. 

A specially commissioned report by Barloworld Logistics turns the spotlight on the 

state of affairs of the industry in South Africa, the Rainbow Nation that is also the 

African continent’s largest and most formidable economy. In addition, our regular and 

specific focus reports and features are intended to being you to speed on the fast-paced 

developments in the industry. We hope all of this makes for informative and timely 

reading. 

For the past four years, the supply chain and logistics industry is coming into its own 

but is also holding out well in the face of relentless onslaught of recession, fiscal crisis, 

falling freight demand and over-capacity and as a fall-out, plummeting freight rates. 

The industry is also a testament to the tenacity and resilience of its operators and we 

see more and more evidence of this in the stories that we cover. 

The Link is on hand to write, report, comment and analyze developments in the industry. 

Perhaps you have an interesting narrative, a different take, a story untold or you wish to 

simply comment on what we cover. We would love to hear from you…..drop us a note. 

It is always a delight to receive your feedback. 

Happy reading, until next month…..stay informed. 

Malcolm Dias 

Editor 

The LINK is the official publication of the SCLGME. The opinions 

and views contained in this publication are not necessarily those 

of the SCLGME as publishers. No part of this publication or any 

part of its contents thereof may be reproduced in any form without 

the written permission of the publishers. 

February 2013 

05

Contents 

24 

15 | Analysis 

Indian Logistics Market — 

Growth Drivers, Challenges and 

Opportunities 

27 

09 

05 | From the 

Editor’s Desk 

08 | COVER STORY 


22 | Guest Feature 

New Supply Chain Strategies 

for the Asia Era 

29 

20 | Futuristic Shopping 

Middle East bracing for its first 

e-Shopping Mall 

21 | Glossary of 

SC&L terms 

What is Reverse Logistics

17 

24 | 5th ESEA Awards 


E-Services feted by Dubai Trade 

30 

35 | Indian PORTs 

investments 

36 | RAK FTZ Recognition 

RAK FTZ wins two prestigious 

industry award recognitions 

52 

40 | NEWS 

SkyCargo enhances capacity with 

acquisition of three new Boeing 777F 

Aircraft • DIP records colossal rise in 

commercial space allotments in 2012 

• Lufthansa trimmed capacity in 2012 • 

Cathay Pacific closes strong in 2012 • FAA 

grounds B787 Dreamliners • New UPS 

Express Service offers faster international 

shipping • Gulftainer handles world’s 

largest container ship at Khorfakkan Port 

• KIZAD welcomes first 3PL company with 

USD $ 74m investment. 

26 | Transworld Group 

commemorates its 

35th Anniversary 

29 | FREE ZONE 

Spectacular growth at 

DAFZA in 2012 

45 

37 | Armenia Rail-Road 

Project 

38 | Callidus Maritime 

Evening 

39 | Etihad Rail Update 

Etihad Rail’s first shipment of 

wagons arrive at Mina Zayed 

55 | SCLG Leadership & 

Profiles 

58 | Insight 

50 

30 | Country Report: 

South Africa 

35 

34 | IATA Report 

Middle East airlines register 

strongest freight growth

Cover Story: Material Handling Equipment 

Exclusive 

Getting a handle on Material Handling Equipment 

Give me a lever long enough and a fulcrum on which to place it, and I shall move the world--Archimedes 

The eminent Greek philosopher’s incredulous earth-moving statement may have raised eyebrows in his time and cynics and 

naysayers may have derided him for his over-ambitious adventurism, but clearly he had also raised the bar for facilitating the 

movement of heavy cargo. Very simply stated, Material Handling Equipment (MHE) is used for the movement and storage of 

material within a facility or at a site. The consideration and importance of good systems application in achieving optimum 

efficiency cannot be over-stated. Buyers in region are spoilt for choce and given the plethora and wide range of available 

apparatus, there are choices aplenty for the finest quality products in this arena. 

The Link spoke to select heavyweight operators (by no means exhaustive) to ascertain their take on this subject, their offerings 

and the industry’s potential in the region. 

SSI Schaefer strives to set the gold standards for the industry 

Since its formation in 1937, SSI Schaefer 

has been an owner-operated, German 

family company, an attribute the firm takes 

great pride in. With over 50 subsidiaries 

worldwide, SSI Schaefer, a titan in the 

supply chain & logistics sector, is a strong 

and reliable partner for potential clients 

across the globe. Whether in industry, 

trade, commerce or public organisations, 

SSI Schaefer products are in use on all 

continents. The company is one of the 

world’s largest total solutions providers 

and components manufacturers in 

logistics systems, storage and conveying, 

workstation, logistics software & waste 

management technology among other 

sectors. 

The strengths and sustainability of all 

the companies in the Schaefer Group 

are assured by the active, hands-on 

involvement of the family that owns 

the company. Schaefer products have 

ubiquitous usage in trade and industry, 

services, local authorities, research 

centres and management, right 

through to the end consumers. With 16 

production sites around the globe and a 

worldwide sales presence, the company 

has a truly global presence. The use of the 

latest production technologies ensures 

direct contact with the marketplace and 

powerful service capabilities. 

SSI Schaefer is among the leading 

providers of warehouse and logistics 

systems worldwide. Services provided 

range from identifying a concept to fitting 

out warehouses through to realising 

complex logistics projects as a general 

contractor. Quality, innovation and 

customer orientation is the underlying 

basis of the company’s success. This is 

clearly evident from the multitude of 

awards and credentials received by the 

company. 

In 2011, SSI Schaefer moved into its 

new 3,000 sq. m. customized Middle East 

regional headquarters located in the 

Dubai World Central (DWC) which houses 

its regional offices and distribution centre. 

The Middle East and the African continent 

constitute two important growth markets 

for SSI Schaefer and are an integral part 

of the company’s worldwide expansion 

programme. SSI Schaefer has been in the 

08 February 2013

Exclusive 


“ 

Our teams in Dubai and the region can offer the full 

range of logistical services for warehouse planning, 

optimisation and project implementation supported 

by our own installation and project management 

teams. 

“ 

region since 2001. 

The Link engaged with the Dubai-based 

tag team of Matthias Hoewer, General 

Manager and Uwe Kircheis, Regional 

Manager for Automation, Schaefer Middle 

East & Africa for exclusive interviews. 

A graduate in Business Information 

Systems from the University of Paderborn 

a city in North Rhine-Westphalia state 

in Germany, Matthias Hoewer joined 

SSI Schaefer in Germany April 2005 and 

was relocated to the UAE in April 2008. 

He has been in his current position since 

January 2011. 

A Logistics engineer, Uwe Kircheis has 

also been in the UAE since 2011 and is 

currently one of the key players in the 

build-up of SSI Schaefer’s presence in the 

South African market. Uwe can look back 

to more than 10 years of experience at the 

SSI Schaefer head offices in Europe. 

The Link: As SSI Schaefer, 

(independently rated as the world’s 

largest Materials Handling Systems 

supplier for the last 5 years), 

commemorates its 75th anniversary, 

what briefly are your thoughts on this 

occasion 

Matthias Hoewer: The worldwide 

success story of SSI Schaefer continues 

here in the region. Celebrating our own 

12th anniversary this year in Dubai, we are 

now offering the full range of SSI Schaefer 

services from standard industrial racking 

and shelving up to fully automated 

products from a state of the art facility 

in Dubai World Central. SSI Schaefer 

continues to grow now with three offices 

in Middle East & Africa and more than 10 

local partner companies in the GCC and 

Africa, following our global motto “We are 

there for you”. 

Q: What broad changes have you 

detected in the industry and how has the 

Materials Handling & Technology Solutions 

industry evolved over the past 5 years 

A: The significance of JIT (just-in-time) 

deliveries and smaller order quantities 

for a larger variety of SKUs (stock-keeping 

units) is dominating the requirements 

that we see on a daily basis from our 

customers worldwide. In the past you 

delivered five pallets of one SKU, today 

you deliver one pallet with a mix of five 

SKUs. This results in far more complex 

layouts for distribution centres and 

Matthias Hoewer, General Manager 

SSI Schaefer Middle East & Africa 

additional processes that have to be 

integrated into the current supply chain. 

Q: How has the Middle East & Africa 

region fared in this sector in 2012 

vis-a-vis other regions and global 

marketplace and what is your prognosis 

for 2013 going forward 

A: 2012 was very diversified also within 

the Middle Eastern and African region. The 

UAE, being considered a safe haven, saw a 

strong year 2012 and this will continues in 

2013 and beyond with continuous political 

turmoil in the Levant and Maghreb (North 

and West Arab-African) countries. Global 

investors trust the stability of the UAE 

and Dubai in particular. With Dubai World 

Central and Jebel Ali, the infrastructure is 

state of the art and very attractive for long 

term investments. 

Q: How has the continuing economic 

recession impacted performance in the 

region 

A: The demise of the Eurozone and the 

fiscal cliff in the US are definitely the two 

Damocles swords that will also decide 

on the economic growth for Middle East 

Africa for 2013 and beyond. A worldwide 

recession would automatically slow down 

the investments. As we have seen in 

2008, the impact here will usually hit our 

markets with a six to twelve month delay. 

2013 should be a solid year for the United 

Arab Emirates. For 2014/ 2015 we have 

plans for ambitious global expansion 

plans, given stable economic conditions. 

February 2013 

09


Exclusive 

FAMCO on the fly 

Uwe Kircheis, Regional Manager Automation 

SSI Schaefer Middle East & Africa 

The Link: Please expand on how 

WAMAS (WArehouse MAnagement 

Systems) logistics software & in-house 

developed Warehouse Technology is 

increasing efficiency in the industry 

Uwe Kircheis: The best way to 

reach an efficient logistics solution is 

having a logistics software (WAMAS) 

and a customised logistics solution 

which perfectly fit to each other. All 

developments in logistic hardware- 

Storage technology, conveyor 

technology and in software-material 

flow control systems and warehouse 

management, are done in a parallel way 

at SSI Schaefer. Thus we can offer an 

optimal and customised solution which 

finally results in an efficiency increase. 

Q: Please briefly comment on one 

or two of your latest technology 

contributions to the industry 

A: The storage lift LOGIMAT can be 

considered as a very interesting solution 

for storage and picking of small parts 

in big quantities. Storage lifts are the 

ideal alternative to store and order pick 

small parts in a compact and ergonomic 

way. With the LOGIMAT you can save up 

to 90% storage space in comparison to 

conventional static storage solutions. 

FAMCO (Al-Futtaim Auto & Machinery 

Company) a member of the giant Al 

Futtaim Group-one of the largest privately 

owned business houses in the Middle 

East, offers a wide variety of products and 

services to a diverse range of industries 

and commercial businesses covering the 

transportation, construction, oil and gas, 

manufacturing, warehousing and marine 

sectors. 

With bases in Dubai, Abu Dhabi, Al Ain 

and Ras Al Khaimah, the company is the 

sole UAE distributor for Volvo trucks, Volvo 

buses and Volvo construction equipment. 

FAMCO is also the exclusive distributor 

for internationally renowned industry 

heavyweights-Yanmar, Ingersoll Rand, 

Himoinsa, Merlo and Linde. 

Operating through five separate trading 

divisions, FAMCO an ISO 9001:2008 

(Quality Standard) and ISO 14001:2004 

(Environment Standard) certified company, 

also enjoys an excellent reputation for its 

turnkey industrial storage and handling 

solutions, including the design and 

installation of Dexion shelving and racking 

systems. It also provides innovative office 

designs including the supply of furniture 

and space saving mobile shelving systems. 

David Dronfield is the General Manager, 

Storage & Handling Solutions, Al-Futtaim 

Auto & Machinery Co. LLC (FAMCO) has 

a B.Sc (Hons) in Electronic & Electrical 

Engineering and a career spanning 26 years 

in the Materials Handling industry. He has 

held positions held in the UK, Australia, 

Indonesia, Thailand and now in the UAE, 

encompassing Project Engineering, 

Project Management, Marketing, Sales 

Management, Business Development and 

General Management. 

David’s work has covered all major 

industries, including 3PL, FMCG, 

Pharmaceutical & Automotive, and has 

managed the design and implementation 

of solutions utilizing the complete 

range of Storage & Materials Handling 

Equipment. In each territory, he has 

worked with both multinational and local 

clients, providing simple product storage 

“ 

FAMCO has expanded into Oman, Qatar and KSA, 

utilizing its principal relationships to establish these 

key markets. Market growth will come with product 

and service supply expansion into these operations – 

watch this space! 

“ 

10 February 2013

Exclusive 


David Dronfield, General Manager, Storage & Handling Solutions, Al-Futtaim Auto & Machinery Co. LLC (FAMCO) 

to semi and fully-automated distribution 

solutions. 

David is responsible for a broad range 

of ‘Principal’ products, including Linde 

Materials Handling, Dexion Storage, Hart, 

Nassau and Stertil Door & Dock Solutions, 

Bott Workshop & In-Vehicle Equipment. 

David also manages the newly formed 

Al Futtaim Interiors Company providing 

full design and fit out of office interiors. 

Dronfield is also a member of the 

Consultative Committee of the SCLG. The 

Link met with David Dronfield for his take 

on FAMCO’s endeavours, 

The Link: What is the range of FAMCO’s 

equipment product line (applications) 

David Dronfield : FAMCO is the exclusive 

agent of Linde MHE for UAE, Oman and 

Qatar, providing the full product range 

into these territories, including IC forklifts, 

Electric Forklifts, Heavy trucks, Container 

Handlers (Laden/empty), Warehouse 

Equipment and specialized products such 

as: Towing tractors and Sideloaders. Linde 

MHE covers the widest product range 

in Material Handling equipment among 

worldwide manufacturers. 

Q: What industry groups does FAMCO 

cater to 

A: Virtually all industry segments are 

covered, with 3PL, Logistics, FMCG, 

Furniture manufacturing, Pharmaceutical, 

Oil & Gas, Retail, Bricks/Blocks 

manufacturing, Cement and ready-mix 

being particularly high users of Linde 

equipment. 

Q: What is the extent of your clientele 

base here in the UAE / region 

A: In the UAE, we are very dominant 

in the Logistics industries, particularly 

focused in the 3PL warehouse equipment 

segment, including key customers such as 

GAC, Freight Works & Al Futtaim Logistics. 

In the FMCG sector, FAMCO supplies large 

operations including Nestle, Mars GCC & 

Ahmed Tea. For the Pharmaceutical sector 

Julphar and Modern Pharmaceutical Co. 

FAMCO has also expanded its coverage 

to include the Ports sector with particular 

success with Linde heavy trucks & 

container handlers supplied to esteemed 

clients including DP World, KN Ibrakom and 

Gulftainer. On a Regional level, FAMCO has 

focused on key industry sectors to include 

clients such as Qatar Petroleum (Oil & Gas) 

and in Oman, ILS (Logistics), Landmark 

Group (Retail sector), Lulu Hypermarket 

(Retail/Hypermarkets), Oman Aluminum 

Rolling Company (Aluminium Rolling 

Sector) 

Q: How do you assess the growth / 

development / evolution of materials 

handling equipment over say the past 5 

years, pre and post recession 

A: Pre-2009, the market for MHE 

experienced rapid growth across all 

sectors, but particularly in the logistics 

industry. Supply of equipment into Free 

Zone logistics companies stretched MHE 

manufacturing supply chains beyond 

capacity. The 3PL and Logistics operations 

particularly required electric warehousing 

equipment, Reach Trucks and Pallet 

Transporters, a particular strength of Linde. 

In conjunction, as the regional markets 

consumed so did the requirement to move 

goods, and customers purchased stock 

units, particularly IC Forklifts to move 

products quickly between vehicle, yard 

and store to cater for their own demands. 

Post-recession, these same 3PL 

providers have focused more on product 

movement. The development of large 

Distribution Centres to cater for massive 

stocks has declined, replaced by efficient 

cross docking and picking operations to 

maximize efficiencies. Pallet movements 

have increased with reduced long 

term storage, boosting sales of Pallet 

Transporters, while reducing large capacity 

storage machines, such as VNA. 

Q: How has the much talked about 

economic recession impacted your 

business 

February 2013 

11


Exclusive 

A: Post-recession, from 2009 onwards, the 

impact was minimal as warehousing projects 

in process continued to completion. These 

warehouses still required the electrical units 

to drive operations, but distribution supply 

chains contracted, resulting in reduced 

product movements, affecting the need for 

particularly IC trucks, the workhorse of the 

outside environment. 

Q: Are you optimistic about short and / or 

long term future prospects 

A: The GCC, and particularly UAE, are 

expected to continue their diversification 

and reliance away from oil, promoting and 

investing into key industries, particularly 

logistics. Supply Chains into and through 

the region will continue to grow, and the 

requirement for MHE will grow proportionally. 

Q: What new areas of growth do you 

foresee for FAMCO in the region 

A: FAMCO has expanded into Oman, Qatar 

and KSA, utilizing its principal relationships to 

establish these key markets. Market growth 

will come with product and service supply 

expansion into these operations – watch this 

space! 

Q: What are FAMCO’s expansion plans for 

the region 

A: From its traditional and well established 

UAE base, FAMCO is embarking on an 

ambitious and aggressive expansion plan 

that extends into both the GCC and other 

regions. Step by step, FAMCO is duplicating 

its coveted service and supply reputation 

into regional operations, replicating 

customer contact and service functions while 

leveraging existing logistical and support 

operations from its UAE base. 

Ehrhardt+Partner Solutions: Providing 

a treasure-trove of solutions for the 

warehousing industry 

Founded in Germany in 1987 as a family 

company, Ehrhardt + Partner comes with 

good professional credentials. It is now an 

internationally active group of companies 

with more than 160 employees in six 

locations. Engineering teams with 

practical experience in logistics and 

software The company commenced 

operations in Dubai in September 2006 

and has the distinction of being the 

first company established in the Dubai 

Logistics City. 

The aim of the new company EPS- 

Ehrhardt + Partner Solutions is to 

implement European quality standards 

and to integrate the latest technologies 

in warehouse logistics. With their German 

warehouse specialists, EPS are already 

active in Dubai offering integrated 

warehouse solutions to interested parties 

and ensuring comprehensive local 

support. 

Since each company has to fulfil 

individual logistic requirements, the multiaward 

winning Ehrhardt + Partner Group 

offers integrated total solutions that can 

be easily adapted to existing or future 

problem definitions. The combination of 

progressiveness and practical approach, 

as well as the experience of over 300 

customer projects, has made the E+P 

Group into a worldwide leader of 

innovation in warehouse logistics. 

Muthanna Muckatira, General Manager 

E+P Ehrhardt + Partner Solutions - DWC 

Growing with the customers while 

helping the customers to grow, this 

concept has worked out. The warehouse 

solutions of the E+P Group sustainably 

provide for an optimization of the 

warehousing process and ensure an 

increase in performance and volume 

in the logistics chain. E+P customers 

can thus count on an experienced and 

reliable partner on their side – one who 

accompanies them throughout the world 

on the road to the logistics of tomorrow. 

The key and secret of the company’s 

success is in their carefully cultivated 

professional partnerships. Since the 

beginning of the 1990s EPS has cooperated 

with IBM, the largest information 

technology provider worldwide. The LFS 

warehouse management system was 

already certified by SAP as supplementary 

12 February 2013

Exclusive 


“ 

There are currently more 

than 600 client locations 

across multiple business 

verticals which can be 

counted as our references 

across the globe. These 

include Automotive, 3PL, 

Retail, Pharmaceutical, 

Electronics, Beverages, 

Manufacturing, Distribution 

among other sectors. 

“ 

software for SAP R/3 in 1997 and as an 

external logistic executing system (LES) in 

October 2002. 

EPS’s close cooperation with Vocollect, 

the leading provider of voice-based picking 

systems worldwide, we can also offer 

our customers integrated total solutions 

from one source in the field of innovative 

picking systems. Its partnership with 

Psion Teklogix, the international supplier 

of mobile computer solutions for the 

industrial and professional environment, 

our customers profit from the advantages 

of new technologies like RFID. 

By the validation of LFS by the team 

warehouse logistics of the Fraunhofer 

Institute for Material Flow and Logistics 

IML, we guarantee our customers 

controlled functionality. As an Oracle 

Gold Partner, E+P receives an improved 

support that can be passed on to the 

users of the LFS Gold Edition. The package 

based on the Enterprise Edition has been 

supplemented by different additional 

options. Those include options in the 

domains of clustering, high availability, 

partitioning and performance monitoring. 

In conjunction with its strategic 

partners, EPS is continually engineering 

and developing new solutions in 

warehouse logistics for future challenges. 

In an exclusive interview with The Link, 

Muthanna Muckatira, General Manager, 

E+P Ehrhardt + Partner Solutions 

outlined the company’s growth strategy, 

its accomplishments and vision for the 

future. 

The Link: As the leading expert / 

provider of Warehouse logistics / 

warehouse solutions since 1987, briefly 

evaluate E+P Ehrhardt + Partner’s 

progress as you commemorate the 

Group’s milestone 25th anniversary 

Muthanna Muckatira: At the core 

of E+Ps success is the award winning 

Warehouse logistics software, LFS, which 

stands for Logistics Focused Solutions. 

This scalable software enables an 

unlimited number of users to run multiple 

warehouses for multiple categories of 

products. LFS embraces and satisfies the 

logistics requirements for a large number 

of industries and for many years has been 

the preferred solution for 3PL providers. 

There are 4 key elements contributing 

to E+P’s success around the world: E+P 

focuses solely on warehouse logistics as its 

strategic core business unlike others. 

Competence: E+P automates customer 

warehouses, provides a full featured 

software suite and shares logistics knowhow. 

Solutions from E+P is the most complete 

available and it offers seamless integration. 

E+P takes a holistic look at customer’s 

entire supply chain as every step in 

this chain can influence the warehouse 

operations. 

Ehrhardt + Partner has grown from 

strength to strength solely on our 

customer loyalty and support over the 

years along with dedicated professionals 

providing the highest level of support. 

The latest venture to commemorate 25 

years has been the launch of a new 3PL 

company, Ehrhardt + Bomag Logistics 

(EBL). This is a joint venture to manage the 

global spare parts distribution for Bomag 

Corporation. 

Q: What is the extent of Ehrhardt + 

Partner activities & services 

A: Together with the group subsidiaries, 

Ehrhardt + Partner group can offer total 

integrated solutions for warehouse 

logistics from one source. The product 

range incorporates the Warehouse 

management system (LFS 7), Warehouse 

planning and Consulting, Pick-by-voice, 

Pick-to-light, Wireless data & Barcode 

solutions, RFID, Material flow controllers 

and individualized customer specific 

solutions. 

Q: Please briefly comment on one or two 

of your latest technology contributions 

(WMS - Warehouse Management System) 

to the industry 

A: Ehrhardt + Partner group has always 

led from the front in providing stateof-the-art 

technology solutions and 

modern logistics processes. We hope to 

stay ahead over the other WMS providers 

with the latest upgrade on our product, 

having mastered with extensive customer 

experience and invested a significant 

portion on R&D over the years. 

February 2013 

13


Exclusive 

GENAVCO’s Material Handling Equipment 

Division in expansion mode in 2013 

We have instituted 3 and 5-year growth plans 

intended 

“ 

to double turnover within term limits 

and are now in the tactical and operational 

phase of ensuring their implementation. 

“ 

Asif Sayeed Khan, Divisional Manager 

Equipment Business Unit, GENAVCO 

1967-established General Navigation 

& Commerce Company (GENAVCO), with 

offices in Dubai, Abu Dhabi, Al Ain and 

Sharjah is a flagship company of the giant 

Juma Al Majid Group founded in 1950. It is 

a major supplier of construction, industrial 

and quarry equipment from in the UAE and 

offers a wide range of industrial, marine 

and construction machinery from globally 

renowned manufacturers from the UK, 

Europe, the USA, Japan and China. The 

vast array of sophisticated equipment has 

applications for the entire gamut of material 

handling of the supply chain and logistics 

industries. These include forklifts, boom 

lifts, scissor lifts, telehandlers, industrial and 

marine diesel engines and generator sets. 

ISO 9001:2008 certified GENAVCO is 

also the authorized sole distributor for 

BP Lubricants in the UAE, an association 

that dates back to 1968. It acquired the 

Isuzu franchise in 1982 and represents the 

company’s range of commercial vehicles 

including the heavy duty C&E Series, the 

medium duty F Series, the light duty N Series 

and Pickup (DMAX). Isuzu manufactured 

trucks & pickups are used by all major fleet 

operators for a wide range of applications 

such as Cargo Truck, Refrigerated Box, 

Delivery Van, Recovery, Tipper Truck, Trailers 

and other applications. More recently it 

announced a distributorship agreement 

with Shanatui, the leading Chinese 

manufacturer of construction machinery 

and earth-moving equipment, dubbed 

the ‘King of the Hill’. The division employs 

around 300 professional personnel. 

The Link visited Asif Sayeed Khan, a 

20-year company veteran and Divisional 

Manager, Equipment Business Unit, in 

GENAVCO’s Zabeel Road Head Office 

offices in Karama, Dubai. The following are 

excerpts from that interview. 

The Link: Please provide us an overview 

of GENAVCO’s Equipment Division and the 

greater corporate fit 

Asif Sayeed Khan: The Material Handling 

& Heavy Equipment (MHE) division is one 

of three GENAVCO divisions alongside 

Isuzu commercial vehicles and Lubricants- 

BP. The MHE division offers a wide range 

of industrial, marine, construction, mining 

and quarry equipment from reputed 

global suppliers. At GENAVCO we offer 

comprehensive turnkey MHE solutions for a 

wide range of industries. We cater to a wide 

range of market segments encompassing 

diverse industries. We are intensely engaged 

in the road construction sector and supply 

a vast array of both electric and batteryoperated 

equipment used in warehouses 

in the retail and hospitality among other 

segments. We also supply generators, 

compressors, automatic transmission 

systems, lift trucks, aerial platforms and all 

kinds of lifts-a considerable range indeed. 

Q: What are your expansion plans for 

the future 

A: We have a two-pronged strategy 

in place for across the board expansion. 

Firstly, we plan to acquire new agencies 

and representations and we also intend to 

consolidate and increase our market share 

in the individual areas of our operations. 

Different industry groups are growing at 

different rates and we hope to capitalize on 

these growth prospects. 

Q: What is your short & long-term vision 

for GENAVCO’s Equipment Division 

A: We have commissioned studies 

conducted by reputed, external, 

independent consultants to assist with 

strategy related to both short and long 

term growth. These include marshalling 

our available resources and leveraging our 

strengths, increasing man power in line 

with growth and expanding facilities. 

14 February 2013

Analysis 

Indian Logistics Market — 

Growth Drivers, Challenges, and Opportunities 

Srinath Manda, Program Manager, Transportation and Logistics Practice, Frost & Sullivan 

Overview of Logistics 

Market in India 

India, the world’s second-most populous 

country, is also the fourth-largest economy. 

India has been consolidating its position as 

a prominent global manufacturing hub for 

industries like automotive, engineering, 

pharmaceuticals, food processing, and 

chemicals, which has been evident from 

rising share of exports in the turnover of 

these industries. India is also one of the 

world’s leading producers of agricultural 

commodities including food grains, milk, 

vegetables, and fruits. In addition, India is 

one of the world’s leading markets for a 

wide range of industries including food, 

fast-moving consumer goods (FMCG), 

electronics, engineering, and automotive, 

among others. All these factors resulted in 

the need for complex and dynamic logistics 

activities across industries, offering strong 

growth opportunities for Logistics Service 

Providers (LSPs). 

The spend on logistics function in 

India varies widely by industry, based on 

the kind of manufacturing activity and 

complexity of the industry’s supply chain, 

as manufacturers source their components 

from an array of suppliers across the globe, 

manufacture, and distribute them to 

widespread consumer markets within and 

out of the country. Industries like cement, 

engineering, and metals spend more on 

logistics activities due to the bulky nature 

of products, which necessitates dedicated 

logistics requirements. Other industries 

like FMCG, textiles, auto components, and 

automotive spend comparatively less on 

logistics activities. Chart 1 demonstrates 

the logistics spend as share in total sales 

of some major manufacturing industries in 

India in 2011. 

The logistics activities for any industry 

can be broadly divided into following four 

functional segments: 

• Transportation 

• Warehousing 

• Freight Forwarding 

• Value Added Logistics 

Services (VALS) 

Most manufacturing industries in India 

spend the largest share of their logistics 

pie on movement and distribution of their 

products within the supply chain. The 

transportation needs and requirements 

for different products vary across various 

industries based on the weight or the 

nature of products. Certain industries such 

as food processing and pharmaceuticals 

require temperature-controlled vehicles for 

movement, while others like engineering, 

metals, and oil and gas require huge 

dedicated vehicles or special tankers. The 

principal mode of transportation for most 

industries is road, followed by rail. 

Warehousing constitutes the secondmost 

prominent segment in the logistics 

function, principally due to the dedicated 

storage and extensive warehousing 

networks required for various products 

across industries to cushion the demandsupply 

gap in manufacturing industries in 

India. Industries such as pharmaceuticals, 

chemicals, and food entail very significant 

warehousing activities, as they require 

dedicated storage facilities due to the 

nature of their products. Others like 

engineering, metals, and minerals require 

minimal levels of storage. 

The freight forwarding market involving 

international transportation is driven 

by significant levels of export activity 

in various manufacturing industries in 

India. Export-intensive industries such 

as pharmaceuticals, auto components, 

textiles, and engineering require highstandard 

freight forwarding services. Sea is 

the most preferred mode of transportation 

in international trade, mainly due to bulky 

nature of most industrial products, apart 

from being significantly economical when 

compared to airfreight, which is principally 

used only to move critical shipments. 

The VALS market is still in its nascent 

stage in India. The basic value-added 

services involved in various industries 

primarily include packaging, labelling, 

bar coding, and tagging, coupled with 

variety of integrated software solutions 

like transportation management 

systems (TMS), warehouse management 

February 2013 

15

Analysis 

Freight 

Forwarding, 9% 

Warehousing, 

25% 

systems (WMS), customer relationship 

management (CRM) systems and more. 

Chart 2 demonstrates the Indian logistics 

market break-up by functional segments 

for 2011. 

Key Growth Drivers for Logistics Market 

in India Transportation Infrastructure 

Development Projects to Boost Logistics 

Industry’s Prospects The ongoing 

rapid development of transportation 

infrastructure projects such as railways’ 

Dedicated Freight Corridors (DFCs) and 

expansion of National Highways along with 

promotion of Coastal Waterways, are likely 

to boost volumes of cargo transported in 

the country both for fulfilling domestic 

and international operations of various 

industry sectors. Upcoming DFCs and 

their adjacent industrial corridors (ICs) are 

expected to transform logistics operations 

in India and lead to major shift towards 

cargo transportation by rail. The efficient 

transportation connectivity offered by 

these corridors is also expected to propel 

a rapid shift of manufacturing bases in 

the country (especially export-bound 

operations) to these corridors. 

Recent developments such as growth 

of dedicated private cargo sea ports 

across the country’s coastline, growth of 

new domestic coastal cargo transport 

providers, and rising capabilities of 

existing providers have boosted coastal 

shipping. It is now a viable alternative 

being considered by manufacturers and 

transporters, at least in select routes 

Value Added 

Logistics, 4% 

Transportation, 

62% 

within the country. In addition, the Indian 

Government’s New Maritime Agenda 2020 

has brought greater focus on this segment, 

among both transport service providers 

and end users. 

Government’s Supporting Initiatives 

for Warehousing Segment to Boost 

Agricultural Logistics Market Wide range 

of supporting measures announced in 

Budget 2012-13 for warehousing segment 

of the Indian logistics sector could help 

reduce losses of food grains and other 

agricultural produce in the country. Frost 

& Sullivan anticipates that the announced 

measures in Budget 2012-13 to enhance 

investment-linked deduction of capital 

expenditure incurred in building and 

operating cold chain facilities and 

warehouses for food grains from 100 to 150 

per cent, is expected to make investments 

in these segments a lucrative option. 

This would certainly augment 

development of these segments. 

Also, the allocation of INR 5,000 crores 

(approximately USD $ 900 million) 

exclusively for creating warehousing 

facilities under Rural Infrastructure 

Development Fund (RIDF), would provide 

a significant boost for the logistics sector’s 

growth in rural areas. Announcement 

of efforts to create nearly 15 million 

tonnes food grain storage capacity in the 

country, under the Private Entrepreneur’s 

Guarantee Scheme, is another major 

growth driver of agriculture commodity 

related warehousing infrastructure in 

the country. It is stated that creation of 2 

million tonnes of storage capacity, in the 

form of modern silos, has already been 

approved. Further, total 8 million tonnes 

of this targeted storage capacity is to be 

added by the end of 2012-13, which is 

expected to address the massive shortage 

of storage space for agri-produce in the 

country. 

Rapid Growth of Manufacturing and 

Consumption in the Country Drives 

Logistics Services Usage LSPs operating 

in India have significant global growth 

opportunities, considering the rapidlyrising 

international trade volumes in 

the country. In addition, the steadilyexpanding 

domestic market for various 

industries, ranging from consumer 

products and food products, to 

automotive, telecom, and electronics, is 

expected to promote the Indian landscape 

as an attractive destination for several 

multinational LSPs seeking long-term 

growth. With key manufacturing industries 

such as automotive, engineering, 

pharmaceuticals, chemicals and a Global 

Growth Partnership Company food 

processing increasingly expanding their 

activities and prominence in the nation’s 

economy, logistics services usage is also 

likely to rise rapidly. 

Among end users of logistics services, 

food processing, oil and gas, engineering 

goods, metals and alloys, and textiles 

are the industry segments having 

16 February 2013

Analysis 

relatively higher logistics spend than 

other manufacturing industries. These 

five industry segments together represent 

approximately about over a quarter of the 

total logistics market in India. 

Key Challenges for Logistics 

Service Providers in India 

Inadequate Railway and Coastal 

Waterways Infrastructure Facilities in 

the Country Industries such as metals, 

cement, oil, and gas are transportintensive 

and have bulky consignments. 

Conventional road transportation is 

relatively costlier than inland waterways 

or rail transportation. Yet, these industries 

are compelled to use the road mode, 

thus escalating their overall logistics 

costs. Insufficient capacities of rail and 

port infrastructure restrict usage of these 

modes. This proves to be a major challenge 

for logistics industry participants, posing 

major constraints and at the same time 

limiting expansion opportunities for 

LSPs in India. However, the Government’s 

focus on developing inland waterway 

facilities, in addition to increasing private 

participation in rail transportation, is 

expanding opportunities for LSPs. They 

are exploring these alternate modes of 

transportation to effectively bring down 

freight costs and eventually reduce the 

entire logistics cost for clients. 

Shortage of Skilled and Qualified Human 

Resources in Logistics and supply chain 

management is a complex function within 

each organization. Activities ranging from 

sourcing and storage of raw materials, 

to storage and transportation of finished 

goods within supply chain management, 

necessitate that the manpower handling 

them must possess industry expertise and 

professional knowledge about efficient 

allocation and utilization of resources and 

assets. Such professional knowledge and 

skills are considered inevitable among all 

workers handling logistics activities (be 

it within the organization or at a service 

provider) in order to achieve optimization 

of the supply chain function. However, 

MNCs 

Key Competitors 

• DHL 

• APL 

• Maersk 

• Panalpina 

• UTI Worldwide 

Indian Logistics Industry 

Government-Owned 


• CWC 

• CONCOR 

• FCI 

• Indian Railways 

• Shipping Corporation of 

there is an increasing scarcity of such 

skilled professionals in the logistics sector. 

Shortage of skilled professionals is 

reported as one of the most critical 

challenges faced by both LSPs and end 

users. Frost & Sullivan’s annual logistics 

industry benchmarking study revealed 

that lack of required skills and expertise in 

logistics’ manpower (within the organization 

as well as at LSPs) is among the top three 

challenges for end-user organizations. 

Indian Logistics Market 

Revenue Forecasts 

According to Frost & Sullivan, the total 

logistics market in India was estimated at 

USD $ 88.7 billion in 2011, witnessing 8 per 

cent growth over the 2010 figure of USD 

$ 82.1 billion. The market is expected to 

reach USD $ 200 billion by 2020, witnessing 

growth of around 8-9 per cent every year 

during this period. Chart 3 shows the 

revenue forecasts for the Indian logistics 

market for 2011-20. 

The agricultural sector accounts for 

the largest share of the total logistics 

market, contributing to more than half 

the market. Food processing, oil and gas, 

engineering goods, metals and alloys, 

and textiles are the industry segments 

having relatively higher logistics spend 

than other manufacturing sectors. These 

five industry segments together represent 

approximately over a quarter of the total 

logistics market in India. 

Domestic Companies 

Organised 

LSPs / 3PLs 


• TCI 

• Gati 

• Safexpress 

• Om Logistics 

• Patel Logistics 

Unorganised 

Participants 


• Several thousands 

of unregistered 

transporters, 

storage providers, 

and freight 

forwarding agents 

Overview of Competition in the 

Indian Logistics Market 

The logistics sector in India is highly 

dominated by the unorganized segment, 

which includes several unregistered freight 

forwarders, transporters and service 

providers while the organized segment is 

characterized by presence of Governmentowned 

service providers, domestic 

third party logistics providers (3PLs) and 

international logistics service providers. 

Chart 4 shows the competitive structure of 

the Indian Logistics Industry in 2011. 

Within the transportation segment, the 

road transportation market is entirely 

dominated by private unorganized 

participants, domestic 3PLs, and MNCs, 

and does not have any Government 

presence. The rail transport sector 

is predominantly characterized by 

Government presence. Governmentowned 

organizations namely, Indian 

Railways and Container Corporation of 

India (CONCOR) are primarily responsible 

for movement of industrial products via 

rail, which mainly include food items, 

metals, mineral products and chemicals 

among other sectors. 

The ocean freight sector is characterized 

by presence of both private and 

Government entities. Government 

presence in this sector is primarily through 

Shipping Corporation of India, whereas 

private sector participants include Essar 

February 2013 

17

Analysis 

Srinath Manda manages the 

Transportation and Logistics research 

and consulting practice of Frost & 

Sullivan for Middle East, North Africa 

and South Asia region. He is responsible 

for planning, executing and delivering 

client-defined consulting engagements 

and strategic market reports. 

He has worked on various market 

consulting projects in the transportation 

and logistics sector involving, market 

analysis, competitive benchmarking, 

market mapping, and end-user 

analysis. Some of the key assignments 

include market entry strategy, market 

penetration and expansion strategy, 

new product acceptance, assessments, 

location analysis and recommendation, 

industry benchmarking along with 

customer needs and satisfaction studies. 

He has also authored several 

strategic market reports covering the 

Transportation and Logistics markets 

in Middle East, North Africa and South 

Asia region. He has closely worked with 

leading domestic and international 

clients like APL, FedEx, IFC, Allcargo, 

Infosys, Hitachi, 20 Cube, and MJ 

Logistics among others covering the 

transportation and logistics markets. In 

addition to the MENASA transportation 

and logistics market, Srinath has also 

worked on research and consulting 

assignments for regions like ASEAN, 

China, Japan and Australia. Prior to 

joining Frost & Sullivan, Srinath was a 

Project Manager with a managementconsulting 

firm. With over 11 years of 

industry experience, Srinath brings 

a strong understanding of market, 

economic and business dynamics. 

Shipping, Varun Shipping, and Shreyas 

Shipping among others. 

Private logistics service providers, 

including dedicated cargo service 

providers such as Blue Dart, GATI, and 

AFL, as well as private airline operators 

such as Jet Airways, Kingfisher, and Indigo 

Air dominate the air cargo transportation 

market. 

Key Growth Opportunities in 

the Indian Logistics Market 

Rising Need for Integrated International 

Logistics Solutions LSPs operating in 

India have significant global growth 

opportunities, considering the rapidlyrising 

international trade volumes of the 

country. Moreover, the steadily-expanding 

domestic market for various industries 

ranging from consumer products and food 

products, to automotive, telecom, and 

electronics, is expected to maintain the 

Indian landscape as an attractive destination 

for several multinational LSPs seeking longterm 

growth. With key manufacturing 

industries such as automotive, engineering, 

pharmaceuticals, and food processing 

increasingly expanding their orientation 

towards global markets, LSPs serving 

companies in these industries are expected 

to witness substantial increase in revenues. 

Improving bilateral trade relations of India 

with all leading global economies (US, 

China, France, Russia, among others) is 

also expected to provide more growth 

opportunities for the logistics sector in 

India. 

Increasing Adoption of 

Logistics Technologies 

As of 2011, only about two-thirds of 

end users reported using some form of 

technology solution to support their 

logistics functions. These solutions 

included basic inventory management 

packages and barcode systems. However, 

usage of exclusive logistics technologies 

such as WMS, TMS, and Radio Frequency 

Identification (RFID) is significantly 

low across industries. Frost & Sullivan 

estimates that the Indian logistics 

technology market is expected to grow 

at about 19 per cent between 2011 and 

2015, to cross USD $ 600 million by 2015. 

This growth is expected to be driven by 

demand from the thriving logistics, retail, 

and manufacturing sectors, as well as 

Government backing. 

Conclusions and Outlook 

India was among the five fastestgrowing 

economies in the world in 

2011. Though the economic growth 

slowed down in 2012, it is expected to 

gain pace from 2013 and the positive 

trend is likely to sustain in coming years. 

As a result, India’s logistics sector offers 

immense growth potential in fulfilling 

the rapidly-rising needs of industries for 

both domestic distributions as well as 

to reach out to targeted international 

markets. The logistics market is expected 

to cross the USD $ 200 billion figure by 

2020, fueled by the consistent growth of 

the nation’s economy and key industries 

such as automotive, engineering, 

pharmaceuticals, and food processing. 

The freight forwarding market holds 

strong potential due to anticipated growth 

of exports by most industries. Increasing 

availability of alternate modes of transport 

like dedicated railway freight corridors, 

and development of coastal shipping 

infrastructural facilities are expected to 

enhance the transportation sector in India 

in the next few years. 

The Government’s supportive 

measures such as development of special 

warehousing zones and logistics parks 

and large nationwide facilities for agricproduce 

and food products storage are 

expected to gain pace. These would aid 

efficient warehousing practices and drive 

down warehousing costs. 

Greater association between LSPs 

and end users in form of collaboration 

to address certain common issues is 

definitely desired in future to enhance the 

mutual trust factor. This would augment 

effective functioning of the logistics 

industry and improve efficiencies for end 

users in coming years. 

18 February 2013

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20 February 2013

Glossary of SC&L terms 

What is Reverse Logistics 

Reverse logistics is a niche service 

commonly provided by specialized 

logistics companies. While it is definitely 

possible for a typical third party logistics 

provider to provide some level of reverse 

logistics, this is a particular niche that some 

logistics companies focus exclusively on. 

So what is reverse logistics Quite simply 

it is any logistics process or management 

that takes place after the sale of product. 

Examples of Reverse Logistics 

Services Include: 

• Returns Processing 

• Return Centre Management 

• Return to Vendor Management 

• Flow Management of Returned 

Product (retailer to vendor) 

• Product Recall Management 

• Product Recycling 

• Test, Repair and Refurbishment 

Operations 

• Product Inspection, Repair and 

Testing for Resale 

A more detailed definition 

of reverse logistics: 

“Reverse logistics is the process of 

planning, implementing, and controlling 

the flow of raw materials, in-process 

inventory and finished goods from the 

point of consumption to the point of 

origin for the purpose of recapturing 

value or for proper disposal/end of life 

recycling.” 

If you are looking for any type of reverse 

logistics services it is highly recommended 

to work a company that has previous 

experience in reverse logistics. That said if 

you have a strong pre-existing relationship 

with your logistics company and believe 

in their ability to invest in building out a 

new reverse logistics service offering to 

meet your needs there are just as many 

success stories there. 

4PL Definition 

One of the most common questions is 

what is a fourth party logistics provider or 

(4PL) First off it’s worth saying that 4PL 

is more of a buzzword than any kind of 

accurate descriptor. That said a 4PL (also 

sometimes called a lead logistics provider) 

is a non-asset based company (they 

don’t own their own trucks or warehouse 

facilities) that provides logistics consulting 

services to fully manage, design, and 

build supply chains. While the logistics 

and supply chain industry continues to 

be confused about the exact role and 

definition of 4PLs, an emerging category 

of logistics consulting and management 

firms are emerging that are invaluable 

in managing large scale, complex 

supply chain functions from the top 

and overseeing innovative technology 

solutions. 

Logistics Acronyms 

The logistics industry moves fast whether you are a 3PL company, trucking company or a client. Every year that goes by it seems 

that a new acronym or abbreviation is created to short hand terms used daily to conduct business. Here is a list of Logistics and 

Trucking acronyms that are regularly used in the industry. This compilations is expansive but by no means exhaustive 

Common Logistics Acronyms: 

3PL – Third Party Logistics 

4PL – Fourth Party Logistics 

ABC – Activity Based Costing 

ABM – Activity Based Management 

AOM – Advanced Order Management 

APS – Advanced Planning System 

ATP – Available to Promise 

BOL – Bill of Lading 

BOM – Bill of Materials 

BPR – Business Process Reengineering 

CMI – Co-Managed Inventory 

CPFR – Collaborative Planning and 

Forecasting Replenishment 

CRM – Customer Relationship Management 

CRP – Capacity Requirements Planning 

DRP – Distribution Resources Planning 

ECR – Efficient Customer Response 

EDI – Electronic Data Interchange 

EOQ – Economic Order Quantity 

ERP – Enterprise Resource Planning 

FAK – Freight All Kinds 

FEFO – First Expire First Out 

FIFO – First in First Out 

FTL – Full Truckload 

FTZ – Free Trade Zone 

GVW – Gross Vehicle Weight 

JIT – Just-In-Time 

LIFO – Last In First Out 

LO/LO – Lift-on/Lift-off 

LTL – Less than Truckload 

MPS – Master Production Schedule 

MRO – Material Repair and Overhaul 

MRP – Material Requirement Planning 

NIFO – Next In First Out 

NVOCC – Non-Vessel Operating 

Common Carriers 

OMS – Order Management System 

OS&D – Over, short and damaged 

POS – Point of Sale 

POD – Point of Delivery 

POE – Point of Entry 

QR – Quick Response 

RFID – Radio Frequency Identification 

RMR – Retail Management Replenishment 

RTV – Retail Management Replenishment 

SCE – Supply Chain Execution 

SCM – Supply Chain Management 

SCP – Supply Chain Planning 

SKU – Stock-Keeping Unit 

TMS – Transportation Management System 

TOFC – Trailer on Flatcar 

TQM – Total Quality Management 

UFC – Uniform Freight Classification 

VMI – Vendor Managed Inventory 

WIP – Work in Process 

WMS – Warehouse Management System 

February 2013 

21

Guest Feature 

New Supply Chain 

Strategies 

for the Asia Era 

Mark Millar MBA, GAICD, FCILT, PMHKLA 

As a result of recent and rapid 

developments in worldwide commerce, 

we have witnessed supply chains evolve 

into complex international networks that 

can no longer adequately be described 

using the linear concept of a ‘chain’. 

The extent, depth and breadth of 

complexity, connectivity and interdependencies 

involved in today’s 

international commerce have resulted 

in the emergence of ‘Supply Chain 

Ecosystems’, globally inter-weaved, 

multi-layered networks of partners, 

suppliers, regulators, service providers 

and customers. Amidst rampant 

globalization and the never ending 

pursuit of low cost labour, these 

supply chain ecosystems have become 

elongated, complicated and frustrated 

with challenges arising from Velocity, 

Volatility and Vulnerability. 

At the same time, the traditional growth 

consumer markets in Europe and North 

America are experiencing varying degrees 

of economic, political, social and fiscal 

uncertainties, which intensify the continual 

challenge of forecasting demand and 

result in high degrees of variability in our 

supply chains. 

Meanwhile, with the inexorable rise of 

the ‘Chindia’ (China + India) powerhouse 

combined with the increasing economic 

prosperity and emerging consumerism 

throughout the ASEAN region, our 

presence here-and-now in ‘The Asia Era’ is 

unequivocally confirmed, at least through 

to year 2050. 

The most important impact for the year 

ahead in 2013 will be a renewed supply 

chain focus that will move beyond the 

traditional performance metrics of speed, 

cost and quality and incorporate much 

more emphasis on five critical Rs of supply 

chain–Regional, Regulatory, Resilience, 

Rationalisation and Responsibility: 

Regional: 

With increasing labour costs, 

especially in mainland China, the 

volatility in oil prices, and the 

trend towards regional free trade 

agreements, companies will seek 

to rebalance their supply chain 

complexity by adopting a more 

regional approach–for example 

‘Made in Asia, for Asia’. Hence, 

there will be some production 

that will migrate ‘closer-to-home’, 

such as Eastern Europe or Latin 

America. This will not however 

result in a mass exodus from Asia 

manufacturing, largely because of 

the well-established supply chain 

ecosystems that service the Asia- 

Europe and Asia-America trades, 

but also because the potential in 

the Asian domestic markets is so 

enormous. 

Regulatory: 

Companies expanding their 

business activities in emerging 

markets are forecast to account for 

almost 60% of global GDP growth 

through to 2015, will increase the 

emphasis on having the expertise to 

capitalise on free trade agreements, 

whilst deploying due diligence to 

ensure full regulatory compliance in 

all relevant jurisdictions. 

Resilience: 

Following the unpredictable 

events that in recent years 

have caused massive-andimmediate 

disruption to supply 

chains (earthquakes, floods, 

accidents, social unrest and 

piracy) companies are seeking to 

develop supply chain resilience. 

22 February 2013

Guest Feature / SCLG Event 

A recent report identified that 

the greatest risk for global 

supply chains is ‘The Unknown’. 

Companies will be adopting 

combinations of ‘what-if’ scenario 

modelling to stress test their 

existing supply chain ecosystems 

and then develop strategies and 

tactics to build supply chain 

resilience and deploy senseand-response 

mechanisms 

in order to be prepared for, 

and equipped to react to, the 

unknown unknowns–“Expect 

the Unexpected!” 

Rationalisation: 

Within the 3PL sector, we will 

see increasing consolidation 

amongst and between logistics 

companies, both at global and 

local levels, as providers seek to 

leverage scale economies, extend 

geographical footprints and 

expand service offerings. Within 

the customer segment we will 

also see further rationalisation 

of their supply base of 

logistics service providers– 

with companies reducing the 

number of outsourced partners 

to a handful of best of breed 

providers, likely specialised by 

geography, transportation mode 

or specific service offering. 

Responsibility: 

Sustainable supply chains are 

firmly back on the corporate 

agenda, driven by proven trends 

that buyers are placing much 

more emphasis on the suppliers’ 

perceived environmental 

reputation when making 

purchasing decisions–both 

for consumers and also in the 

B2B world. Environmentally 

Responsible supply chains 

will incorporate particular 

emphasis on green initiatives, 

carbon footprint measurements, 

recycling and waste management 

programmes. There could 

well be progress towards the 

development of independent 

sustainability standards in the 

shipping and logistics sector for 

measurement and reporting of a 

supply chain’s carbon footprint. 

As we move into year 2013, new supply 

chain challenges will surface, presenting 

many interesting and exciting challenges 

and opportunities throughout our 

supply chain ecosystems, adopting a proactive 

approach to these critical five R’s 

will empower businesses to overcome 

the challenges and capitalise on the 

opportunities. 

Industry thought leader Mark Millar has 

been engaged by clients as Speaker, MC, 

Moderator or Conference Chairman at 

more than 250 events in 20 countries and 

is recognized by the Global Institute of 

Logistics as ‘One of the most Progressive 

People in World Logistics’ 

mark@markmillar.com 

SCLG holds reception for Vorarlberg University student delegation 

SCLG recently received 

and held a reception for a 

12-member delegation of 

business management students 

and faculty from the University 

of Vorarlberg in Austria at the 

Four Points Sheraton Hotel, 

Dubai. The group on a factfinding 

and familiarization 

mission was led by Andreas Dur, 

Managing Director, xpertlog 

and member of the SCLG 

Consultative Committee. 

The delegation was welcomed by 

Shashi Shekhar, Founder & Group 

President, SCLG along with Dr. Kanak 

Madrecha and Dr. Satish Mapara, both 

members of the Board of Directors, SCLG 

and other SCLG officials. 

Dr. Madrecha briefed the delegation 

on the spectacular economic progress of 

the UAE and the exponential growth of 

the supply chain and logistics industry in 

Dubai, a key logistical hub in the region. 

The students evinced keen interest in the 

UAE and the scope and potential offered 

by the UAE. Four students from the group 

took turns to update those present on the 

prominence and primacy of Vorarlberg as 

the economic centre of Austria. 

Vorarlberg is the westernmost federal 

state of Austria. Although it is the smallest 

in terms of area (Vienna is 

the smallest) and population 

(Burgenland is less populated), it 

borders three countries: Germany, 

Switzerland and Liechtenstein. 

This progressive state is home 

to several Austrian multinational 

corporations notably electronics, 

machinery, textiles, clothing, 

packaging and agricultural 

products and derivatives 

including world-famous juice 

brands—Rauch and Pfanner. 

Also present on the occasion were Krishna 

Prasad, a member of the SCLG Consultative 

Committee; Usha Kaul Saraf, Director- 

Centre for Management & Professional 

Development at the University of Dubai, 

Joy Thattil Ittoop, Advocate with Callidus 

Corporate & Maritime Consultancy and 

Kanchan R. Vora, Director Administration, 

SCLG. 

February 2013 

23

5th ESEA Awards 

Top performers adopting its e-services feted by 

Dubai Trade 

The winners pose for a group photograph with HE Sultan Ahmed Bin Sulayem, Chairman of DP World and Eng. Mahmood Al Bastaki, CEO, Dubai Trade 

The 5th E-Service Excellence Award 

(ESEA) was recently held today with 

pomp and splendour in the grandeur 

of the humungous Baniyas Ballroom of 

the Grand Hyatt Hotel in Dubai under 

the patronage of His Highness Sheikh 

Maktoum Bin Mohammed Bin Rashid Al 

Maktoum, Deputy Ruler of Dubai, during 

which top performers in electronic 

services adoption were honoured by 

Dubai Trade, the premier cross-border 

trade facilitator under Dubai World. 

The gala ceremony recognizing 

the achievements of the most active 

online performers throughout the year 

was attended by a stream of senior 

Government officials and business 

supremos drawn from among the 

supply chain and logistics industry. 

Among those present was His Excellency 

Abdullah Al Saleh, Undersecretary of 

the UAE Ministry of Foreign Trade. The 

prestigious, well-attended event was 

also attended by His Excellency Sultan 

Ahmed Bin Sulayem, Chairman of DP 

World; His Excellency Jamal Majid Bin 

Thaniah, Chairman of Dubai Trade; 

and Eng. Mahmood Al Bastaki, CEO of 

Dubai Trade; and key dignitaries from 

the government and private sector, top 

management and decision makers from 

manufacturing and trading companies, 

supply chain service providers, bankers 

and financiers, and senior executives 

from Dubai World and its business units. 

This year›s prestigious ESEA award 

witnessed an increase in the number 

of nominees. The award was given 

to companies in nine categories in 

recognition of their high performance in 

adopting the E-Services provided through 

the Dubai Trade portal. The winners of the 

5th ESEA Awards were as follows: 

Appreciation awards were also granted 

to joint Platinum Sponsors: Network 

International & Emirates NBD, the two 

Gold Sponsors: FedEx and Al Futtaim 

Logistics, and the Sliver Sponsors: 

Mashreq Bank, Agility Global Logistics 

FZE, Freight Systems and Global West 

Star Shipping. 

In his speech at the event, HE Sultan 

Ahmed Bin Sulayem, Chairman of DP 

World, commented, “Dubai Trade 

has consistently demonstrated its 

proactiveness. It has taken on the task 

of enhancing the emirate›s position as 

one of the world›s most popular business 

24 February 2013

5th ESEA Awards 

• Clearing Agent of The Year 2012: Al Areesh Cargo Clearing & GLT 

• Importer of The Year 2012: T. Choithram & Sons LLC. 

• Exporter of The Year 2012: Borouge Pte Ltd 

• Haulier of The Year 2012: Arty Transport Co LLC 

• Free Zone Company of The Year 2012: Agility Global Logistics FZE 

• Shipping Agent – Containerized Cargo of The Year 2012: 

OOCL (UAE) LLC 

• Shipping Agent – General Cargo of The Year 2012: 

Gulf Agency Company (Dubai) LLC 

• Freight Forwarder of The Year 2012: 

Wilhelmsen Ships Service (Barwil Dubai L.L.C) 

• Re-Exporter of The Year 2012: Eros Electricals 

hubs and as a leading trade and logistics 

facilitator. Dubai Trade receives the 

full support of DP World in increasing 

the adoption of E-Services and digital 

transformation in trade and logistics as 

this falls directly in line with the UAE›s 

ambitious goals and efforts in enhancing 

global competitiveness in facilitating 

regional and international trade.” 

In congratulating the winners, HE Jamal 

Majid Bin Thaniah, Chairman of Dubai 

Trade, praised the relationship between 

the trade and logistics community and 

Dubai Trade. He added, “Year after 

year, Dubai Trade has succeeded in 

strengthening its position with the trade 

and logistics sector that is reaping the 

direct benefits of adopting Dubai Trade›s 

E-Services. This occasion also provides 

a good opportunity to pay tribute to 

the vital role played by Dubai Trade in 

supporting trade growth in Dubai.” 

For his part, Eng. Mahmood Al Bastaki, 

CEO of Dubai Trade, revealed new records 

realized by the portal, with the number 

of registered users hitting 72,000, an 

increase of over 26% from 57,000 at the 

end of 2011. He continued, “As we witness 

this growing demand, we congratulate the 

ESEA winners on their efforts in adopting 

our E-Services. Competition was fierce 

this year, and this is but a reflection of our 

winners› enthusiasm and commitment, 

and their desire to remain well-informed 

and benefit from the digital evolution in 

cross-border trading.” 

Another record was unveiled by Eng. 

Mahmood Al Bastaki, CEO of Dubai Trade, 

“There is no doubt about the extent to 

which the trade and logistics community 

uses our E-Services. Transactions on 

the Dubai Trade platform in 2012 alone 

reached approximately 14.9 million 

compared with 12 million in 2011, growth 

of 24% over the past year. This is a direct 

result of our team›s success in creating 

optimal IT solutions and the levels of 

support we continue to receive from our 

board of directors. These numbers also 

reflect the great benefits realized by our 

customers in time efficiency, cost reduction 

and in environmental terms, in addition to 

the fact that we provide a secure platform 

for our customers› transactions as well as 

enhanced transparency,” he asserted. 

The 5th E-Service Excellence Award 

gala ceremony was held this year 

with significant support from various 

governmental entities as well as trade 

and logistics agencies, in the forefront of 

which were the Joint Platinum Sponsors 

Network International and Emirates NBD. 

Dubai Trade FZE has set an important 

benchmark for excellence in trading for 

the region as a whole, with its online portal 

www.dubaitrade.ae offering seamless 

trade flow for Dubai’s vast trading 

community. More than 800 e-services of 

DP World, Economic Zones World, Dubai 

Customs and Dubai Multi Commodities 

Centre, in addition to several leading 

banks are integrated under the Dubai 

Trade umbrella. 

February 2013 

25

Transworld Group commemorates its 35th Anniversary 

Transworld Group nimble and nifty 

at 35, announces ambitious growth plans 

Ramesh S. Ramakrishnan, Chairman, Transworld; HE Sultan Ahmed Bin Sulayem, Chairman, DP World & Mohammed Sharaf, Chief Executive Officer, DP World 

The Transworld Group, the leading 

multi-faceted shipping and logistics 

conglomerate, has announced the expansion 

of its operations into new verticals, 

with the incorporation of Transworld 

Bulk Carriers FZCO and Transworld 

Projects. The expansion sees Transworld’s 

foray into the non-containerized 

segment, where it has entered as owners 

and operators of bulk carriers and 

project logistics services providers. 

Transworld also unveiled its new 

branding created to symbolize the renewed 

vision and mission of the company, 

which is to focus on innovation, 

adapting new strategies and technologies 

and becoming a leader in the shipping 

and logistics industry. 

The announcements were made during 

a celebratory event marking Transworld’s 

completion of 35 years. The 

event, held at Transworld headquarters 

in Jebel Ali Free Zone Area (JAFZA), was 

attended by Sultan Ahmed Bin Sulayem, 

Chairman, DP World; Mohammed Sharaf, 

Chief Executive Officer, DP World accompanied 

by senior officials of JAFZA, along 

with other dignitaries. Also present on 

the occasion was HE Sanjay Verma, the 

Indian Consul General in Dubai. 

Speaking at a well-attended press 

conference to a distinguished, especially 

invited gathering at a commemorative 

ceremony and luncheon reception on 

the sprawling lawns of the Group offices 

in the Jebel Ali Free Trade Zone Ramesh 

S. Ramakrishnan, Chairman of Transworld, 

commented: “As we reflect on our 

journey and achievements of 35 years, 

an important milestone for the Group, it 

is also time for us to renew our objective 

to be a seamless end-to-end logistics 

services provider. Our new identity falls 

in line with this renewed focus to continue 

our endeavor to achieve perfection. 

As part of this mission, we have expanded 

our existing operations. We are very 

pleased to announce our foray into the 

new verticals of Transworld. We believe 

these expansions will add great value to 

our core businesses within the umbrella 

of container shipping. The addition of 

three new container ships, along with 

the increase in capacity of the containers 

and increased focus on the reefer 

market within the region has led to a 

strong growth for Transworld, besides 

resulting in a significant increase in the 

inventory in our group company, Balaji 

Shipping.” 

“This launch comes at a landmark 

moment in the Transworld history. The 

expansion, besides being our first foray 

into the non-containerized segment, 

also marks the completion of Transworld’s 

35 years in the industry. From 

our beginnings as a shipping agency, 

today, Transworld has evolved to be a 

leading provider of comprehensive sup- 

26 February 2013

Transworld Group commemorates its 35th Anniversary 

ply chain logistics services in the region. 

This high-accelerated growth has been 

possible because of the irrefutable support 

of DP World and other authorities 

of Dubai and UAE, which has enabled 

us to be efficient and timely in providing 

unmatched quality of service to our 

customers and business partners. Our 

growth story has accelerated in the UAE 

thanks to the shipping friendly policies 

laid out by the country’s visionary leaders. 

This has made it possible for us to 

reach the world,” he added. 

Transworld, as a leading provider of diverse 

shipping and logistics services, has 

established its stronghold in the industry 

over 35 years through its companies Orient 

Express Lines, Balaji Shipping, Shreyas 

Shipping and Logistics, Shreyas Relay 

Systems and Albatross Shipping, among 

others. The companies have developed a 

strong footing for Transworld across the 

globe including UAE, India and USA. 

Speaking at the launch, Mohammed 

Sharaf from DP World said: “Our heartfelt 

congratulations to Transworld on 

their achievements and completion of 35 

years. Transworld, through the growth of 

its diverse group companies like Orient 

Express Lines, Balaji Shipping and others, 

has been a strong supporter of DP World. 

We are very pleased that the Group chose 

to establish itself here and channel its 

growth through JAFZA as its global base. 

The strategic location of Dubai’s ports 

and the exceptional infrastructure that 

they offer has enabled Transworld and 

many others to gain a competitive advantage 

in the industry. We are certain 

Transworld’s expansions will further fuel 

their growth, ensuring they continue to 

grow as leading players in the industry. 

Making its foray into the dry bulk 

segment as owner and operator under 

the division Transworld Bulk Carriers 

FZCO, Transworld has associated with 

Guangzhou Wenchong Shipyard for acquiring 

three bulk carrier ships: MV TBC 

Progress, MV TBC Prestige and MV TBC 

“ The expansion, besides being our first foray into 

the non-containerized segment, also marks the 

completion of Transworld’s 35 years in the industry. “ 

Princess. 

In line with its vision to be a comprehensive 

project logistics services provider, 

Transworld has established Transworld 

Projects, its division that would offer effective 

and economical project logistics 

solutions to a wide range of heavy industries 

and Oil and Gas market segments. 

Transworld’s new corporate identity, 

launched as part of its 35th anniversary 

celebrations, incorporates new corporate 

colours, blue and silver, which signify the 

Group’s strength, professionalism and 

values. The logo, a seamless transition 

from old to new, reinforces the company’s 

legacy of trust while signaling the 

bright new future ahead. 

Established in 1976, the Dubai-headquartered 

Group’s journey over 35 years 

has seen it evolve as a global player in 

the shipping and logistics industry. The 

Transworld Group of Companies was established 

in 1976 by R. Sivaswamy. Starting 

off as a shipping agency in Bombay 

(now Mumbai), the Group has now diversified 

into a multi-faceted Shipping and 

Logistics Company. The activities of the 

Group include: Ship Owning (Container 

& Bulk Carriers), Feedering, NVOCC, Logistics, 

Freight Forwarding and Supply 

Chain Management, CFS’s, Ship Management 

and Shipping Agencies. 

Headquartered in the Jebel Ali Free 

Zone (Dubai, UAE), with offices in USA, 

Saudi Arabia, Oman, Kuwait, Sri Lanka, 

Pakistan and offices in 28 Indian cities 

combined with strong network partner’s 

world over Transworld offers a one-stop 

shop to all customers. Transworld is 

among the leading International providers 

of multi-modal integrated logistics 

services in the Middle East, Indian Sub- 

Continent and South East Asia. The Group 

has three ship owning companies, based 

in India and UAE, which collectively own 

a fleet of container vessels. The Group 

currently owns nine ships of which six are 

out of India and three out of UAE. Transworld 

has dedicated shipping line agencies, 

which cater to clients with international 

logistics needs. The companies 

enjoy a thriving presence in the business 

of air and surface cargo movement as 

well as CFS operations. 

February 2013 

27

& Logistics Industry 

10 Years 

Celebrating 

as the voice of the 

The Supply Chain 


Air France-KLM- 

Martinair Cargo 

The Flying Leviathan 

John Engelaan, Director 

Air France-KLM-Martinair Cargo 

GCC, Iran, Pakistan, Sri Lanka & Bangladesh 

Inside... 

18 | DUBAI CUSTOMS 

24 | LEADERS OF TOMORROW 

27 | LIQUID LOGISTICS PROVIDER 

t32 | SEATRADE MIDDLE EAST 2012 

Powering on with the new 

SCLG launches initiative to 

Mirsal 

Tristar 

Risk 

earns its 

Engine 

stripes with ambitious 

induct students into SC&L 

Conference & Awards Presentation 

expansion plans, safety record 

www.sclgme.org Issue 10 : Vol. 12: Dec 2012 /Jan 2013

Free Zone : DAFZA 

Spectacular growth at DAFZA in 2012 

“We will continue to provide 

DAFZA with all the support it needs 

to ensure that it continues to rank 

among the top global free zones.” 

Dubai Airport Freezone, (DAFZA) has 

reported a record 73 per cent growth 

in trade volume and 26 per cent surge 

in sales revenue in 2012 compared to 

2011. International firms registered at the 

Freezone have collectively grown the value 

of their exported and imported goods 

by AED 164 billion ($ 45 billion) in 2012, 

up AED 69 billion ($ 18.9 billion) from AED 

95 billion ($ 26 billion) in 2011, DAFZA said 

in a recent statement. The total number of 

firms operating in DAFZA currently stands 

at more than 1,600. 

In 2012, the airport free zone saw the 

number of construction and engineering 

companies increase by more than a third 

or 37 per cent. This figure directly reflects 

increasing investment in Middle Eastern 

construction projects, according to a report 

issued by Bank of America Merrill 

Lynch. Total investment in construction 

projects in the Middle East is expected to 

jump to USD $ 4.2 trillion by 2020, with the 

UAE enjoying the biggest chunk, valued at 

USD $ 698 billion. Another key sector that 

saw growth was the jewellery industry, as 

the number of tenants operating in Dubai 

Airport Freezone increased by a staggering 

140 per cent throughout 2012. 

In 2012, DAFZA, which accounted for 

2.2 per cent of Dubai’s economy in 2011, 

issued 201 licences for global organisations 

to operate within the Freezone. The 

number of registered UK companies also 

saw an increase of 25 per cent. “Dubai Airport 

Freezone has proven its unrivalled 

capability in attracting international companies 

which add value to the local economy 

and consolidate Dubai’s status in the 

global markets as a business hub,” said 

Shaikh Ahmed Bin Saeed Al Maktoum, 

Chairman, DAFZA. “We will continue to 

provide DAFZA with all the support it 

needs to ensure that it continues to rank 

among the top global free zones.” 

DAFZA’s Director General, Dr Mohammed 

Al Zarooni, said that these results 

show the excellent progress being made in 

DAFZA’s objective to attract and support 

foreign companies within the Freezone. 

“The Freezone’s strategic location, next 

door to Dubai International Airport, has 

given it unique strength and made it a favourite 

place for foreign companies. The 

availability of many facilities, hassle-free 

procedures and investment opportunities 

has secured its place as a significant contributor 

to the country’s growth,” he said. 

“We have worked hard to continuously 

develop the investment climate by training 

our workforce to best serve clients 

and satisfy investors,” he added. “After a 

successful 17 years, DAFZA has become 

one of the most experienced authorities 

in attracting foreign capital.” Dr. Al 

Zarooni explained that Freezone companies, 

currently standing at more than 

1,600 from around the world, cover with a 

diverse spectrum of industries that meet 

the needs of the Middle Eastern and African 

markets. He believes this alignment 

will in turn lead to on-going business integration 

and boost economic relationships 

between the UAE and other countries 

worldwide 

Dr Al Zarooni said in 2013 DAFZA plans 

to continue improving the Freezone as 

it works to facilitate the tenants’ business 

operations. “We are currently in the 

process of building a project inclusive of: 

a food court with mixed use recreational 

business facilities, seven floors dedicated 

to new offices for international organisations 

and a building dedicated to DAFZA’s 

strategic partners from various governmental 

institutions. The main power station 

will increase capacity by 40 per cent 

to accommodate this growth.” 

DAFZA will be adding a multi-storey 

car park with a capacity for 850 cars, catering 

to our tenants’ needs. The project 

is planned to exceed more than Dh300 

million, for a total building area of 70,000 

square metres. Phase one is expected to 

be completed in 2015. 

In 2012, DAFZA also continued to successfully 

build upon its economic relationships, 

by developing strategic partnerships 

with global companies to enhance 

its international status and broaden its 

reach. DAFZA held a number of bilateral 

agreements with different entities which 

included Dallas Fort Worth Airport and 

HSBC Bank. 

In 2012, the airport free zone was recognised 

with nine international awards 

in 2012. In June 2012, DAFZA was ranked 

the best in the world in the 2012 edition 

of the Global Free Zone Rankings published 

by the Financial Times’ Foreign Direct 

Investment (fDi) Magazine. 

February 2013 

29

Country Report: South Africa 

Companies take stock of new Supply Chain 

& Logistics realities in the Rainbow Nation 

job title or function 

The recently published Supply Chain 

Foresight Research Report (2012) into attitudes, 

issues and trends in South Africa’s 

supply chains was conducted under the 

auspices of Barloworld Logistics the leading 

(South Africa-headquartered) providers 

and integrators of supply chain solutions 

with extensive operations in China, 

the United Arab Emirates, Iberia, Germany 

and the United Kingdom. 

Initiated in 2002, it is now well-established 

as the benchmark qualitative study 

of the national supply chain. This year’s 

ninth edition of the report goes by the title 

‘South Africa Inc.-Growth, Competitiveness 

and the Africa Question’. Once more 

it sampled the responses of a wide range 

of senior executives and decision makers 

from across a wide spectrum of South Africa’s 

industry sectors and not only those involved 

directly with supply chains. Various 

businesses of different sizes were focused 

upon this year, with specific concentration 

on large multinational companies. 

Clearly the most burning question facing 

the Rainbow Nation’s businesses across all 

industry sectors was how to use their supply 

chains to remain profitable and competitive 

in a world stricken by economic 

slowdown, rising unemployment and high 

levels of debt. In South Africa these efforts 

to deploy the supply chain as an enabler 

of growth have been hampered by labour 

costs, bureaucracy, infrastructure shortcomings, 

and other competitive challenges. 

One of the aims of this year’s research, 

therefore, was to gauge how individual 

companies and industries were engaging 

the changing economic landscape with 

which the country is faced. 

In particular that landscape reflects a 

shift in global economic power, away from 

the developed world and towards the still 

growing economies of the major emerging 

markets, which has been evident for 

the last few years. This shift should present 

South African business with a major opportunity 

to capture market share and 

grow. Companies and industries should 

embrace emerging market economies as 

trading partners and as new markets. This 

is especially so of the African continent, 

where South Africa has for so long been 

seen as the trading and logistics gateway 

into Africa, a position which is now under 

threat. 

This year’s Supply Chain Foresight study 

Size of companies surveyed based on annual turnover 

15.8% 

4.0% 

3.5% 

2.0% 0.5% 

3.5% 

5.9% 

9.9% 

8.9% 

12.9% 

13.9% 

19.3% 

CEO /MD 

General Manager 

Supply Chain Director / Manager 

Logistics Director / Manager 

Logistics Middle Managemenrt 

Operations Director / Managerr 

Finance Director 

Marketing Director 

IT Director /EIO 

Sales 

Procurement 

Other 

therefore sought to analyse where South 

African companies were in terms of their 

strategies for growth, and their engagement 

with the logistical aspects of the business 

and being part of a supply chain that 

extended across their industry sectors and 

ultimately across the national economy. 

This included looking at how South African 

companies were organised and represented 

in their industries and what industrywide 

initiatives existed for key areas such 

as industry lobbying and skills training. The 

survey probed the objectives, challenges 

and constraints that faced businesses, industries 

and the country in the quest for 

growth in difficult and challenging circumstances. 

Part of this focus on future insight, 

or foresight, were the implications of the 

shift to emerging economy markets and in 

particular looking to other African markets 

as a new field of possibilities. 

Given this context, the study 

was organised into three key 

sections: 

Firstly, a more comprehensive view than 

in previous years on both business and 

supply chain short term and medium term 

objectives and constraints on South African 

companies. 

Secondly, a section on South Africa Inc. 

and the competitiveness both of individual 

30 February 2013


companies and the industries they were 

in. This provided us with a clearer picture 

of the threats and opportunities faced by 

South Africa as a nation competing in global 

supply chains with other nations. This 

section included questions on industry 

competitiveness in an international landscape, 

how industries were organised and 

represented themselves to other industry 

sectors and to Government, and what 

were their growth prospects given the current 

infrastructure constraints. 

The respondent and company profile 

for this year’s study followed a similar pattern 

to the established base. Finally in this 

contextualisation of the research sample, 

there was, as usual, a comprehensive representation 

of industry sectors which have 

participated in this year’s Supply Chain 

Foresight survey. 

Well over 50% of the respondents were 

in senior executive positions across their 

businesses, including CEOs, MDs, Marketing 

Directors and Financial Directors. A 

substantial percentage came from supply 

chain and logistics senior management. 

Similarly, these senior executives came 

largely from multinational businesses of 

considerable size–over one third came 

from businesses with annual revenues of 

over Rand (ZAR) 5bn (USD $ 550 million) 

and more than half of over Rand (ZAR) 1bn 

5.0% 

Main Industry 

13.4% 

9.9% 

2.5% 

10.9% 

3.9% 

0.5% 

4.5% 

12.4% 

10.4% 

Agribusiness 

Automotive 

Buidling, Constr. & Engin. 

Insurance, Finances, Real Estate 

FMCG 

Govt. Services & SOEs 

Hotels, Rest. & Entertainment 

IT & Communications 

Logistics & Transportation 

Miniing 

Oil & Gas 

Chemicals 

3.0% 

2.0% 2.0% 

1.5% 

Paper & Packaging 

Pharma & Healthcare 

13.9% 

0.5% 

5.0% 

Retail 

Steel & Other Matals 

Others 

Top 5 Strategic Business Objectives 

Increasing flexibility, agility & 

responsiveness in my business 

Using supply chain as more of 

a competitive advantage 

Expansion into emerging 

markets 

Co-operation tto improve 

industry competitiveness 

International growth and 

expansion 

3% 10% 88% 

7% 11% 83% 

8% 16% 75% 

14% 20% 66% 

18% 17% 66% 

Low Box 3 Top Box 

(USD $ 110 million). 

Finally, industry growth and competitiveness 

issues were taken into the international 

fold by identifying where the threats 

and opportunities lay for South African 

industries and the national supply chain, 

in particular in other African markets. The 

Automotive, FMCG, Retail, and Mining 

sectors were all strongly represented and 

there was significant participation from 

the Building and Construction industry as 

well as ICT and Agribusiness. 

Business and Supply Chain 

Objectives and Constraints 

The approach to the trend-tracking part 

of the study was changed this year by the 

need to measure what companies felt were 

the major constraints to growth. Instead of 

looking at challenges, which was the past 

approach, both general business and specific 

supply chain constraints went along 

with business and supply chain objectives 

over a medium term framework. The reason 

for this was to explicitly link strategic 

business objectives and constraints to 

supply chain strategies, to gain a better 

picture of what needs to be done in the 

supply chain arena to better underpin and 

enable the growth ambitions of business. 

The top option chosen for the medium 

term business objective was to increase 

flexibility, agility and responsiveness, followed 

closely by the goal to use the supply 

chain as more of a competitive advantage. 

These two were closely interlinked 

and demonstrated the closer alignment 

of business and supply chain strategy over 

the last few years. The objective for the 

business to adapt flexibly and quickly to 

Top 5 Strategic Business Constraints 

Cost of doing business 6% 17% 78% 

Currency volattility 

Rand strength 

Local competition 

Macroeconomic uncertainty 

16% 16% 68% 

17% 17% 67% 

16% 24% 59% 

22% 22% 57% 


variable customer demand in a tight and 

volatile market was something of a breakthrough. 

Previously a strong focus on planning 

and forecasting had marked efforts to 

make the supply chain more competitive, 

but accurate forecasting remained, in past 

research surveys, a constant challenge. The 

current focus on responsiveness marked a 

welcome shift to more engagement with 

actual customer demand and market conditions 

rather than product and manufacturing 

schedules. A more positive macroeconomic 

outlook was evident in other 

top choices for business objectives being 

focused on growth, expansion into emerging 

markets and internationally. The expansion 

into emerging markets objective 

in particular was of interest, it was the third 

most supported objective by the respondents, 

with three quarters of the sample 

selecting it as a top objective. As we shall 

see later on, while there was a great deal of 

challenge and operational difficulty associated 

with moving into emerging markets, 

especially in the rest of Africa, emerging 

market expansion and growth was also 

seen by South African companies as much 

more of a real opportunity. The need for 

industry-based collaboration rounded out 

the top five objectives – a further sign of 

maturing business attitudes to competitiveness. 

The top constraints on the other hand 

demonstrated a strong focus on costs. The 

leading constraint for South African-based 

businesses was the cost of doing business, 

a factor made up of various contributory 

causes, not least of which were bureaucracy, 

taxes and customs costs, as well as the 

high costs of electricity and labour. While 

February 2013 

31


Top 5 Strategic Business Objectives 

Improving service levels to 

customers 

3% 4% 94% 

Top 5 Constraints to Supply Chain 

Cost of business 

6% 11% 83% 

Lowering procurement costs 

and reducing lead times 

4% 8% 88% 

Finding skills & expertise to 

enhance SC management 

10% 19% 71% 

Improving visibility in the 

supply chain 

Improvingg flow of business 

intelligence between 

Business, customers & Suppliers 

4% 11% 85% 

Efficiency of ports and harbours 

15% 18% 67% 

5% 12 84 

Labour unrest affecting SC 

operations 

16% 27% 58% 

Optimising inbound and 

outbound transportation 

9% 12% 80% 

Reducing the environmental 

impact of SC 

17% 28% 55% 



the ‘Rand Strength’ featured strongly as a 

constraint, it was perhaps more accurate 

to focus on the currency’s volatility as a 

business constraint, since this added to 

planning uncertainty for both the import 

and export trade as well as for domestic 

production and consumption. While ‘local 

competition’ was listed as a constraint, 

this may be read as a positive – that local 

companies were becoming more competitive 

through deploying their supply chains 

better. 

Supply Chain Objectives and 

Constraints 

In terms of supply chain objectives, 

strong emphasis on cost management 

went alongside a realisation that partnership 

was essential to the use of the supply 

chain as a competitive advantage. 

Therefore, increasing service levels to 

customers remained the number one 

supply chain objective, as it was in previous 

years. This objective must still be 

achieved at the lowest possible cost, as 

is the objective of lowering procurement 

costs and decreasing lead times. Essentially, 

in a highly competitive environment 

of variable demand, customer needs 

must be met in the most cost-efficient 

way possible. What was interesting was 

a shift in perception about how this can 

be achieved. The next top objective was 

improving visibility in the supply chain, 

followed closely by improving the flow of 

information between the business, suppliers 

and customers. This strongly suggested 

a maturing of the long-held mantra 

of the supply chain, collaboration. No 

longer could suppliers be squeezed if the 

supply chain was to remain competitive, 

there had to be a more strategic and holistic 

view that was to the mutual benefit 

of supply chain players and one that offered 

sustainable benefit to the customer 

in the longer term. In fact, in industries 

where the competitiveness of the supply 

chain was critical to success, such as the 

automotive industry, the information 

flow objective was supported by every 

single respondent. 

Regarding supply chain constraints, a 

more familiar picture emerged. The cost of 

transport featured as the greatest supply 

chain constraint, for almost every industry 

sector. South Africa’s high logistics costs 

and the imbalance between road and rail 

have been well-documented. Sadly, this 

has been exacerbated lately with the imminent 

imposition of tolling and carbon 

tax fees. This is one area that desperately 

needed effective communication between 

all industry sectors (since all of them have 

to move goods) and the Government. 

Over and above, the public sector/private 

sector disconnect, companies do need to 

ask themselves hard questions about reducing 

these costs - are they moving their 

goods in the most cost-effective way possible 

Is each industry considering innovative 

ways of moving their goods differently 

– through co-operation with other industry 

sectors, for example The bottom line is 

that there was enormous value to be had 

in businesses constantly re-looking at their 

transport strategies and thinking laterally 

about them. The second major constraint 

was finding skills to enhance supply chain 

management. The skills issue remained 

a burning and urgent challenge for companies 

across all industry sectors – but 

could it be addressed in a different way 

In the meantime, are companies partnering 

with the right companies to provide 

them with such expertise and skills, in a 

mutually beneficial relationship Labour 

unrest, which featured prominently in the 

South African market and especially in the 

freight transport sector in the year under 

review, is unsurprisingly featured as a major 

constraint. 

Perhaps more surprising was the presence 

of ‘reducing the environmental impact 

of the supply chain’ as a constraint, 

a first appearance in the top five for this 

option. The increasing pressure to reduce 

carbon footprint and to hold suppliers 

accountable, set by legislation and tax 

regimes, undoubtedly accounted for this 

constraint becoming prominent. The pressure 

on corporations to ‘go green’ was thus 

now affecting the bottom line. 

32 February 2013

IATA Report 

Middle East airlines 

register strongest 

freight growth 

Overall, air freight volumes slightly up 

in November 2012: IATA Report 

Tony Tyler, Director General & CEO, IATA 

The latest, recently released International Air Transport Association 

(IATA) released traffic results for November 2012 showed an improvement 

in both passenger and air freight demand. Air travel was 4.6% 

higher compared to November 2011, up on the October result of 2.9%. 

Air freight volumes edged up 1.6% over the same period after declining 

2.6% in October, year to year. Passenger capacity rose 3.2% and 

load factor improved one percentage point to 77.3% compared to the 

year-ago period. 

“November brought some positive signs for air transport demand— 

particularly for air cargo. It is premature to consider this a turning 

point for air cargo markets in terms of bouncing back and regaining 

lost ground. But, when coupled with positive economic developments 

in the US and an improvement in business confidence in recent 

months, the conditions are aligning to see a return to growth in 2013. 

In 2013 we expect that cargo volumes will grow 1.4%, and passenger 

traffic will increase by 4.5% worldwide,” said Tony Tyler, IATA’s Director 

General and CEO. 

“Passenger markets have held up better than cargo in the face of adverse 

economic conditions. But the current level of air travel is just 2% 

higher than at the start of 2012. This is considerably weaker than the 

long-term average growth rate,” said Tyler. Compared to October, November 

passenger traffic grew 0.6%. The majority of growth came from 

domestic markets, particularly China. November air freight volumes increased 

2.4% on October. This reflects a shift in seasonal shopping to 

online retailers, which depend heavily on air cargo. It also shows improved 

consumer confidence in the US. Seasonally-adjusted air freight 

volumes have now risen back to the levels of mid-2012, after declines 

in the third quarter. 

Freight Markets 

(International and Domestic) 

Air freight markets rebounded strongly in November, 

expanding by 1.6% after a 2.6% year-on-year decline 

in October. Although some of this increase reflects the 

impact of the Thai floods in the year-ago period, the 

month-on-month increase of 2.4% is a positive sign. 

Asia-Pacific airlines were responsible for almost half 

the rise in total volumes compared to October. The 2.4% 

rise in month-on-month volumes for the region was in 

contrast to a 1.5% decline compared to November 2011. 

Freight capacity fell 2.8% over the period. North American 

carriers increased freight traffic by 1.7%, and cut capacity 

by 0.6%, compared to November 2011. European 

airlines’ year-on-year freight traffic was flat, and capacity 

grew just 0.3%. 

Middle East carriers’ freight showed the strongest 

year-on-year growth of any region, up 16% on just a 

6.1% rise in capacity. Load factor surged to 46.7%, up 4 

percentage points. 

Latin American airlines’ freight grew 4.2% year-onyear, 

but capacity grew at more than twice the rate, 

up 8.5%. 

African carriers grew freight volumes by 4.4% compared 

to November 2011. Although they kept the capacity 

increase to 3.6%, the load factor of 26.2% was still the 

weakest of all regions by a wide margin. 

34 February 2013

Indian Ports Investments 

Indian Shipping Ministry to award 25 projects 

worth US $ 2.045 bn by March-end 2013 

The Indian Shipping Ministry will 

award 25 projects worth USD $ 2.045 

billion by the end of the current fiscal, 

a move that is expected to increase 

cargo-handling capacity at ports 

by 250 million tonne. The decision 

follows Prime Minister’s Manmohan 

Singh’s instruction to the ministry a 

month ago that capacity expansion 

should be fast-tracked. 

Ports in the country have been 

plagued by capacity shortage largely 

due to security clearance issues, 

which discourage private sector 

participation. “The ministry has set 

a target of awarding 42 projects in 

2013. We have already awarded 17 

and will now complete 25 projects by 

March, increasing the total capacity 

across ports by 250 million tonnes,” 

Pradeep Sinha, secretary in the shipping 

ministry, said. 

Construction of a mega container 

terminal in Chennai in the Southern state 

of Tamil Nadu and a second dock at the 

Haldia Port (in West Bengal state) are 

among the projects that will be awarded. 

The ministry has also decided not to 

pursue the Port Regulatory Authority Bill 

largely due to opposition from various 

state governments and minor Ports. 

The Bill aimed to regulate all ports in 

the country, including the mushrooming 

private ports that are currently free to 

fix tariffs. The ministry, which has not 

awarded any major projects in the last 

two years, has also written to the ministry 

GK Vasan , Indian Union Shipping Minister 

of finance to revive a subsidy given to the 

shipbuilding industry. “We have made 

a recommendation to the ministry of 

finance to revive the subsidy given to 

the shipbuilding sector. We have asked 

the ministry to give 15% subsidy and, in 

addition, we are also seeking infrastructure 

status for the sector,” Sinha said. 

The ministry has also given in-principle 

approval to the deregulation of the tariff 

mechanism. Currently, port tariffs are 

fixed by the Tariff Authority for Major 

Ports (TAMP), a government-controlled 

body that often finds itself at loggerheads 

with port operators over rates. “For future 

projects, the ministry has decided that the 

tariff be market regulated and not decided 

by TAMP,” Sinha said. “As far as existing 

projects where TAMP is involved, the 

ministry will look at it on an individual 

basis.” 

In February last year, TAMP had 

reduced the tariff at two terminals 

at the Jawaharlal Nehru Port Trust, 

quashing a demand for an increase 

in rates. Meanwhile, the finance 

ministry has approved a plan by JNPT, 

Dredging Corporation of India and 

Ennore Port (set up as a satellite to 

the Port of Chennai) to tap the bond 

market by February 2013 to fund 

their capital expenditure plans. Last 

month, streamlining the security 

clearance mechanism for companies 

participating in port projects, the 

ministry had said that a clearance 

once received would be valid for three 

years. 

“The ministry has also taken measures 

to reduce the time taken for the projects 

and has streamlined security clearance 

procedures and is constantly monitoring 

various projects,” Union Shipping Minister 

GK Vasan said. In a follow up, the ministry 

has forwarded to the home affairs 

department a request by Adani Ports and 

Special Economic Zone to revalidate the 

security clearance it has received earlier for 

a port project in Chennai. 

In a separate development, JNPT has 

agreed to give a no-objection certificate 

to the Mumbai Trans-harbour Link. Earlier, 

it had opposed its construction saying it 

would come in the way of the proposed 

fifth container terminal at the port. 

February 2013 

35

RAK FTZ Recognition 

RAK FTZ wins two prestigious industry 

award recognitions 

The Ras Al Khaimah Free Trade Zone (RAK FTZ), one of the fastest-growing and most 

cost-effective free trade zones in the UAE, has been honoured with two prestigious industry 

awards in the Middle East and beyond. 

Re-emphasizing its role in the changed digital environment and business landscape, the 

RAK FTZ won the top Economic Zone in the World Award for Digital Marketing, conferred 

by the Financial Times fDi Intelligence and Magazine. RAK FTZ is the only economic zone in 

the entire MENA region to be honoured with the award. 

The fDi Digital Marketing award recognizes the best digital marketing campaigns, initiatives 

and strategies across the globe and judged the various digital offerings on the basis of 

innovation, effective use of social media and website design and marketing through search 

engine optimization, access to information and contact. 

The free zone also received a major impetus in its commitment to social responsibility 

when it was conferred the Best Corporate in the UAE Award for Social Responsibility. The 

award was given by the Arab Organization for Social Responsibility in collaboration with 

Tatweej Academy for Excellence. The Arab Organization for Social Responsibility aims to 

honor and encourage the governmental and private organizations in the Arab world to 

emphasize role in the Social Responsibility. 

Maryam Al Murshedi, Deputy Director General of RAK FTZ, said: “It is a matter of immense 

privilege to be honoured with top industry awards this week. To be recognized among the 

top free zones across the world for digital market by fDi magazine is a great accolade for us. 

The recognition goes to prove our strong credentials across the digital channels and our 

seamless online presence. This is a milestone for us and it has solidified our position as a 

leader and an innovator within our industry.” 

36 February 2013

Armenia Rail-Road Project 

Dubai-based Rasia in the lead in setting up 

major rail-road projects in Armenia 

A Dubai-based investment firm is to 

play a key role in establishing new USD 

$ 3bn high speed rail and road projects 

in the Republic of Armenia. Rasia is leading 

a consortium of companies which will 

work on the Southern Armenia Railway 

and Southern Armenia High Speed Road 

Projects, Gagik Beglaryan, the Armenian 

Minister of Transport and Communication 

announced recently. The Ministry in 

a statement stated that a tripartite memorandum 

of understanding had been recently 

signed in Yerevan in the Armenian 

capital between Rasia, South Caucasus 

Railway, and the Ministry of Transport 

and Communication of the Republic of 

Armenia. 

During a presentation, signing ceremony 

and public announcement attended by 

senior government officials, ambassadors, 

investment and sovereign funds, and corporate 

executives from Armenia, China, 

Russia, the United Arab Emirates, and Iran, 

a tripartite Memorandum of Understanding 

on regional cooperation towards the 

development of the Southern Armenia 

Railway was signed between Rasia FZE, 

South Caucasus Railway CJSC, and the 

Ministry of Transport and Communication 

of the Republic of Armenia. 

In 2012, the Republic of Armenia signed 

with Dubai-based investment company, 

Rasia FZE, two concession agreements for 

the vitally important transport projects in 

order to develop them on a Public-Private 

Partnership basis. The concession terms 

provide specific periods for completing 

feasibility studies, engineering designs, 

project financing and construction and 

are followed by a 30-year operating period, 

renewable by Rasia for an additional 

20 years. 

The Southern Armenia Railway is set to 

be a 316 km long electrified single track 

railway, which will connect Gavar, near 

Lake Sevan, to the southern Armenia city 

of Meghri on the border with Iran and will 

Dubai-based Rasia in the lead in setting up major rail-road projects in Armenia 

Completion of Signing Ceremony - Minister Beglaryan and Joseph Borkowski 

be integrated with the existing central 

railway system of the Republic of Armenia. 

It will be operated by South Caucasus 

Railway and the operating railway system 

of Iran, the statement said. 

The Southern Armenia High Speed 

Road, is to be constructed in Armenia›s 

southern province of Syunik, and will be 

a 110 km long expressway connecting 

the town of Sisian to Meghri. “When the 

projects are completed, transport costs 

and times for the region are expected to 

improve substantially, fostering greater 

regional trade and economic growth 

while dramatically strengthening the Armenian 

economy,” the statement said. 

Joseph Borkowski, Chairman and CEO of 

Rasia, said: “The projects have attracted 

significant regional interest from both 

strategic and financial partners waiting 

to participate in their development.” He 

said Rasia is already implementing a consortium-based 

strategy for the feasibility, 

design, financing, development and operation 

of the projects. 

Borkowski added that Rasia has recently 

signed agreements with China Communications 

Construction Company Ltd to become 

the lead member of the development 

consortium. He said: “Rasia and its consortium 

members will aim to boost potential 

local and international transit freight volumes 

by investing in the development of 

mineral and agricultural projects.” 

February 2013 

37

Callidus Maritime Evening 

Callidus hosts ‘Maritime Evening’ in Dubai 

Callidus Corporate and Maritime 

Consulting (CCMC), a unique corporate 

and maritime consulting firm, recently 

held a Maritime Evening on the Rooftop 

of Dubai’s Flora Creek Hotel centred on the 

theme: Revelation through Interaction. The 

insights, experience and expertise gained 

by CCMC professionals & legal eagles in 

resolving highly complicated maritime 

issues were imparted to the well-attended, 

by-invitation only event that drew an 

audience of around 100 professionals from 

the corporate and maritime community. 

The event was endorsed by the SCLG. 

The attendees were welcomed by 

Advocate Bechu Kurian Thomas, a 

prominent litigation counsel who served as 

the moderator of the two sessions. Session 

1 dwelt on the subject of ‘Freight Claims 

Management & Cargo Claim Handling 

Procedures’ and was addressed by veteran 

attorney T. M. Sebastian, who possesses 

a wealth of knowledge and experience 

spanning over 38 years in this area of 

expertise. Session 2 focused on ‘Shipping 

Documents & Relevance of Contract’ and 

was presided over by Joy Thattil Ittoop, 

eminent lawyer with specialization on 

International Maritime Law from the 

University of Southampton in the UK. 

The seven-step cargo claims 

handling process is as follows: 

1. Notify your insurance 

underwriter. 

2. Contact the carrier’s 

Customer Service 

Department 

3. Engage a surveyor 

if necessary 

4. Mitigate cargo loss 

5. Collect all relevant 

documents 

6. Submit a quantified claim 

7. Protect against time bar 

Session 1 covered the following 

subjects--· Seven important steps the 

cargo owners should take in the event of 

claims; How freight companies handle 

cargo claims; Claims handling: The eleven 

documents required; Reefer claims 

handling procedures; What is subrogation; 

Time limits for filing claims with carrier and 

Sample notice of claim against carrier. 

Attorney Sebastian opined that today’s 

domestic and international freight market 

as well as the domestic and international 

trading market is more competitive than 

ever before. Decreasing freight rates 

and increasing expenses are making it 

more and more difficult to find and retain 

business in the freight industry. For freight 

companies to survive and flourish in the 

modern environment, they must be able 

to differentiate themselves from their 

competition on the basis of high quality 

service. 

He emphasized that ‘Improving Risk 

Management’ and adequate claims 

handling is a low cost and highly effective 

way of adding value for customers and 

putting the company one step ahead of the 

competition. Sebastian stressed that freight 

and trading companies should endeavour 

to ensure that they have effective measures 

to reduce cargo damage, and if any 

damage does occur, that they handle them 

effectively and rapidly so that they are not 

left with dissatisfied customers. 

Session 2 chaired by Joy Thattil Ittoop 

covered the subject of Shipping Documents 

& Relevance of contract. Ancillary topics 

included: What is a Shipping Contract 

Essential points to be noted while handling 

the shipping, documents and how to 

vet shipping documents and shipping 

contracts. 

The 11 documents required from 

claimants include the following: 

1. Claim statement showing the 

amount of the claim and type 

of alleged damage 

2. Shippers commercial invoice 

and packing list 

3. Delivery receipt and 

devanning tally with reefer 

container seal number 

4. Survey report(s) from the 

surveyor(s) representing 

cargo interests and/or marine 

cargo underwriters 

5. Salvage receipt if the cargo 

was sold for salvage or 

auctioned away 

6. Destruction certificate if the 

cargo was not sold for salvage 

7. Consumption entry if claim 

includes duty (paid customs 

entry form) 

8. Reconditioning or repair 

invoices, if applicable 

9. Copy of the ocean bill of 

lading 

10. Subrogation receipt if the 

cargo insurers filed the claim 

(the receipt should be 

properly dated and 

identifying the insurer). 

11. Equipment Interchange 

Receipts (EIR) showing dates 

and times, the fresh air and 

temperature settings and 

the condition of the 

refrigerated container at the 

time of delivery to the load 

port (EIR fill in) and pick up 

from the discharge port 

(EIR full out). 

38 February 2013

Etihad Rail Update 

Etihad Rail’s first shipment of wagons arrive at Mina Zayed 

The first shipment of train 

wagons especially ordered by 

Etihad Rail arrived in Mina Zayed 

recently. The wagons will be 

used in Phase I of the Etihad Rail 

project, which will link Shah and 

Habshan to Ruwais in the Western 

Region (Gharbia), 

The project for the construction 

of Phase-I of the Shah-Habshan-Ruwais 

rail line for transport 

of granulated sulphur for 

export is in partnership with Abu 

Dhabi National Oil Company 

(ADNOC). It aims to deliver significant 

strategic benefits such 

as providing a secure transportation 

link between the UAE and its 

GCC neighbours and beyond. 

Etihad Rail said in a statement: 

“The wagons were designed 

with the highest available safety 

standards to accommodate the core purpose 

of Phase I, the transport of granulated 

sulphur. For example, the wagons’ 

top-hatch covers for loading maintain 

the purity of the sulphur at 99.9 per cent. 

Furthermore, train transport allows for a 

capacity of up to 22,000 tonnes of sulphur 

per day. It would take 360 trucks to transport 

the equivalent tonnage.” 

Nasser Saif Al Mansoori, CEO of Etihad 

Rail said, “The timely arrival of the wagons 

is yet another indicator of the rapid 

progress being made on this strategic 

national project. Construction activity for 

the first stage of the rail project, which is 

being developed in partnership with AD- 

NOC, is far along and we are on track to 

see the first trains run from Habshan to 

Ruwais within a year using these wagons.” 

Tony Douglas, CEO, ADPC, commented: 

“We’re looking forward in particular to 

the company running its freight service 

to Khalifa Port from 2016. This will boost 

the port’s transport services and is a vital 

“It will play a significant role in building a sustainable 

economy by promoting growth in various business 

sectors, providing jobs for the local workforce, and 

contributing to environmental preservation, since one 

fully loaded train produces 70-80 per cent less of CO2 

emissions than that of the trucks required to transport 

the same tonnage,” Nasser Saif Al Mansoori 

milestone for the megaproject of Khalifa 

Port and KIZAD”. Construction on the 264 

km route for Phase-I of Etihad Rail, which 

links Shah and Habshan to Ruwais, is well 

under way. 

The company said that the locomotives, 

to be operational by the end of 2013 in 

the Western Region, will support the inaugural 

service of transporting granulated 

sulphur from the Shah and Habshan fields 

to Ruwais. Last May, Eitihad Rail unveiled 

the approved livery for its locomotives. 

“The locomotives will be finished in a 

durable light grey paint scheme, relieved 

with broad red bands and the Etihad Rail 

logo near the middle of the body line,” Etihad 

Rail said. 

In 2011, Etihad Rail contracted China 

South Locomotive and Rolling Stock Corporation 

Limited (CSR) to supply 240 covered 

wagons for the transport of granulated 

sulphur in the Western Region of 

Abu Dhabi. And it has already contracted 

United States-based Electro-Motive Diesel 

(EMD), one of the world’s largest builders 

of diesel-electric locomotives, to 

design and manufacture seven 

heavy haul freight locomotives. 

In the meantime, Mina Zayed, 

has already received other equipment 

necessary for the construction 

of Phase I, including one locomotive 

(to switch the wagons), 

and will continue to act as Etihad 

Rail’s gateway to vital suppliers 

from around the globe. 

Tendering process 

The tendering process is already 

in progress for Phase II, 

which covers the rest of the Abu 

Dhabi emirate railway network, 

and a rail connection between 

Abu Dhabi and Dubai, with links 

to or through Mussafah, Khalifa 

port, and Jebel Ali port and 

further to the Saudi and Omani 

borders, spanning 628 km. 

Phase III is the extension of the rail 

network to the northern emirates and 

at 279 km, will connect the rest of the 

Northern Emirates and will inaugurate 

Etihad Rail’s passenger service. Once 

completed, the Etihad Rail network, 

which will cater to both freight and passengers, 

will span a total of 1,200 km 

across the Emirates. It will connect urban 

and remote communities, facilitate 

trade, open up communication channels 

and foster economic development. The 

network will also form a vital part of the 

GCC Railway Network — linking the UAE 

to Saudi Arabia via Ghweifat in the west 

and Oman via Al Ain in the east. 

Early in December, 2012, Sharaf Logistics 

signed a MoU with Etihad Rail. Johan 

Bergwerff, Managing Director of Sharaf 

Logistics, said: “We believe the rail network 

will be the most effective means of transportation 

for freight and that it will create a 

great value-add to our customers.” 

February 2013 

39

NEWS 

SkyCargo enhances capacity with 

acquisition of three new Boeing 777F Aircraft 

SkyCargo has significantly boosted its total 

cargo capacity and expanded its dedicated 

freighter network with the addition of three 

new Boeing 777F aircraft. The three new 

freighters, each capable of carrying up to 103 

tonnes of cargo, takes SkyCargo’s freighter 

fleet to 10 aircraft and its dedicated freighter 

network to 12 destinations. These are Taipei, 

Chittagong, Eldoret (Kenya), Lilongwe (Malawi), 

Kabul, Almaty (Kazakhstan), Gothenburg 

(Sweden), Zaragoza (Spain), Viracopos 

(Brazil), Tripoli, Djibouti and Liege (Belgium). 

A fourth new Boeing 777 freighter will join 

the fleet in March this year. 

“As one of the largest air cargo carriers in 

the world, we continue to invest in our fleet 

and expand our route network, enabling us 

to provide our customers with even greater 

flexibility, increased frequencies, additional 

capacity to handle larger cargo volumes 

and charter flights,” said Ram Menen, Emirates 

Divisional Senior Vice President Cargo. 

“Our dedicated freighter fleet, coupled with 

our cargo capacity on our passenger fleet 

of 185 wide-bodied aircraft that flies to 128 

destinations in 74 countries, gives us extensive 

global reach and connectivity to the 

trade routes of the world.” 

In 2012, Emirates introduced services to 

Rio de Janeiro, Buenos Aires, Dublin, Dallas, 

Lusaka, Harare, Seattle, Ho Chi Minh 

City, Barcelona, Lisbon, Washington DC, Adelaide, 

Lyon and Phuket, while Warsaw will 

join the route network on 6 February and 

Algiers on 1 March 2013. 

The Boeing 777F aircraft is the most modern, 

technologically advanced freighter 

available and has the lowest fuel burn of 

any comparable-sized cargo aircraft. The 

main cargo deck is the widest of any freighter 

aircraft at 3.7 metres, which enables it to 

uplift outs. 

Emirates-Qantas alliance gets interim regulatory approval 

Australia’s competition watchdog 

recently gave Qantas and Emirates Airlines 

permission to begin implementing their 

global alliance but said final approval was 

still pending. The Australian Competition 

and Consumer Commission (ACCC), which 

gave the carriers preliminary approval in 

December to combine operations for an 

initial five years, said that practical sales, 

marketing and other steps could now start. 

“The ACCC is allowing Qantas and 

Emirates to start implementing their 

alliance because of the long lead time 

required to market and sell tickets before 

the commencement of long-haul services,” 

said ACCC Chairman Rod Sims. “In making 

its decision, the ACCC has accepted written 

assurances from the parties that should 

the ACCC ultimately decide not to allow 

the alliance to go ahead, the airlines will 

accommodate consumers’ bookings.” 

Under the proposal, which will kick 

off in April if approved, the airlines 

will coordinate ticket prices and flight 

schedules and Qantas will shift its hub for 

European flights to Dubai from Singapore. 

It also means an end to Qantas’s 

partnership with British Airways on the 

route to London, which has spanned 

nearly two decades. 

40 February 2013

NEWS 

Frankfurt’s cargo tonnage shrinks in 2012 

Frankfurt Airport has seen its cargo throughput contract 6.7 per cent to 2.1 million 

tonnes in 2012. However, there was an increase of 1.9 per cent in the number of passengers 

the airport handled during the year: 57.5 million. Fraport Executive Board Chairman 

Stefan Schulte mentioned that the weak global economy’s effect on the cargo market had 

adversely impacted its operations. He also pointed out that the December 2012 cargo volumes 

that were 1.5 per cent down year-over-year at 174590 tonnes, showed that the negative 

trend had been slowing down. 

Emirates and TAP 

in commercial cooperation 

Emirates and TAP Portugal have today 

announced the start of a reciprocal codeshare 

agreement enabling passengers 

from both airlines to benefit from seamless 

connections effective from 21 December 

2012. The reciprocal codeshare will permit 

customers to enjoy the convenience of a 

single combined ticket for Emirates and TAP 

Portugal-operated flights, in addition to 

linking Emirates’ frequent flyer programme, 

Skywards and TAP’s Victoria frequent flyer 

programme. 

“Europe is a strategic market for Emirates 

with a strong level of growth and customer 

engagement in 2012. This new code-share 

agreement with TAP is another key element 

in our expansion plan across the region,’’ 

said Thierry Antinori, Emirates’ Executive 

Vice President, Passenger Sales Worldwide 

in an announcement press communique. 

Lufthansa trimmed capacity in 2012 

Lufthansa Cargo’s tonnage dipped in 

2012 but the carrier kept utilisation of its 

aircraft capacities on a stable level. During 

the year, Lufthansa Cargo transported 

a little more than 1.7 million tonnes of 

freight and mail, about 8.5 per cent below 

the year-earlier figure. The decrease 

was attributable to restrained demand in 

all traffic regions. 

The carrier trimmed capacity by more 

than eight per cent enabling it to hold 

utilisation at a very high level over the 

full twelve-month term: In comparison 

with the previous year, the cargo 

load factor even rose marginally to 69.6 

per cent. 

UPS not to pursue 

deal with TNT 

United Parcel Service (UPS) has walked out of 

the $6.9 billion (€5.2 billion) takeover of TNT 

Express NV after it became apparent that 

the European Commission would reject the 

deal. TNT will receive a $265.5 million (€200 

million) break fee but its future remains 

bleak: shares went down 50 per cent in the 

first minutes of the trading day in Amsterdam 

following the news about UPS moving out. 

In May 2012, UPS had offered to buy TNT to 

counter the competition posed by Europe’s 

largest express provider, Deutsche Post’s 

DHL. However, after the 11 January 2013 

meeting with regulators, UPS said that it did 

not see the deal being approved. 

February 2013 

41

NEWS 

Etihad Cargo announces 

new freighter operations 

to Guangzhou 

Wolfgang Prock-Schauer 

is the new CEO at airberlin 

Air Berlin PLC has announced the appointment of Wolfgang 

Prock-Schauer, 56, as the new Chief Executive Officer of the airline. 

Prock-Schauer also becomes an Executive Director on the Board 

of Directors of Air Berlin PLC. Prock-Schauer succeeds Hartmut 

Mehdorn, who has held the position of Chief Executive Officer on 

an interim basis since 1 September 2011. Mehdorn will continue to 

serve as Non-Executive Director of the Board. 

Until now Prock-Schauer has held the post of Chief Strategy and 

Network Planning Officer (CSPO) on the Management Board of 

airberlin, and he will continue in this role until further notice. After 

graduating in Business Administration from Vienna University 

he started his professional career in 1981 with Austrian Airlines, 

where, as Executive Vice President, his responsibilities included 

network management, strategic planning and alliances, as well as 

the integration of regional airlines Lauda Air and Tyrolean. 

In 2003 he moved to India as CEO of Jet Airways. In 2005 he 

successfully led Jet Airways to become a registered company 

on the stock exchange and expanded the company’s long-haul 

business and global network with other airlines. From 2009 to 2012 

Wolfgang Prock-Schauer was CEO of British Midland International, 

where he introduced numerous productivity improvements. 

Prock-Schauer is married and has three children. 

Etihad Cargo has inaugurated a new direct weekly freighter 

operation from Abu Dhabi to the southern Chinese city of 

Guangzhou. The new cargo service will operate every Thursday 

using an Airbus A330-200F freighter, with a capacity of 68 metric 

tonnes. Guangzhou is the third largest city in China, the capital of 

the Guangdong province and is a major centre for the manufacturing 

of electronic goods. 

Etihad Cargo already operates nine weekly freighter services 

between Abu Dhabi and the Chinese cities of Shanghai and Beijing. 

In addition, the UAE flag carrier offers cargo services on its 

18 weekly scheduled passenger services to Beijing, Chengdu and 

Shanghai. 

Kevin Knight, Etihad Airways Chief Strategy and Planning Officer, 

in a statement commented: “China is a strategically important market 

for Etihad Cargo, and the new Guangzhou-Abu Dhabi freighter 

service will allow us to capitalise on the strong export demand 

coming out of southern China”. 

Etihad Cargo flies to a total of 87 destinations internationally, operating 

a fleet of six freighters, consisting of one Airbus A300-600F, 

two Airbus A330-200F, one McDonnell Douglas MD-11F, one Boeing 

B777F and one Boeing B747-400F. In 2013, the cargo operator 

will take delivery of three new freighters – an Airbus A330-200F 

and two Boeing B777F. 

February 2013 

43

NEWS 

Cathay Pacific closes strong in 2012 

Cathay Pacific Airways combined 

Cathay Pacific and Dragonair (a wholly 

owned subsidiary of the Hong Kong’s flag 

carrier) traffic figures for December 2012 

show an increase for both passenger 

numbers and cargo and mail tonnage 

compared to corresponding figures 

December 2011. 

The two airlines carried 146,897 tonnes 

of cargo and mail last month, an increase 

of 3.4 per cent compared to December 

2011. The cargo and mail load factor fell 

by 0.4 percentage points to 67.4 per cent. 

Capacity, measured in available cargo/ 

mail tonne kilometres, rose by one per 

cent while cargo and mail revenue tonne 

kilometres rose by 0.4 per cent. For the 

whole of 2012, tonnage declined by 5.3 

per cent while capacity dropped by 3.1 

per cent. 

Cathay Pacific General Manager Cargo 

Sales & Marketing James Woodrow said: 

“December was the fourth month in a 

row that we saw year-on-year growth in 

tonnage. The cargo market had been in the 

doldrums since April 2011, so it was good 

to see the year 2012 ending on a stronger 

note. However, the cargo and mail tonnage 

carried in 2012 was still some way behind 

the 2010 total. We operated close to a full 

freighter schedule in December and added 

one more new destination to our freighter 

network, Colombo in Sri Lanka.” 

Cathay’s Hong Kong 

terminal to commence 

operations in February 2013 

Cathay Pacific Services, the designer, 

builder and operator of the new USD 

$ 761.12 million Cathay Pacific Cargo 

Terminal at Hong Kong’s Chek Lap Kok 

International Airport, has announced that 

the terminal will start operations from 21 

February 2013. Capable of handling 2.6 

million tonnes of throughput per year, the 

terminal will be opened in three stages. 

In Stage One, valuable cargo, transit civil 

mail and interface transfer transhipments 

for Cathay and Dragonair will be handled; 

Stage Two in the summer of 2013 will see 

transhipments, import cargo and empty 

unit load device (ULD) release while in 

Stage Three in the latter half of this year, 

the terminal will become fully operational. 

HACTL achieves high 

tonnage growth 

Hong Kong Air Cargo Terminals Limited 

(HACTL) has reported the second best 

year in the company’s 37-year history. Q4 

in 2012 saw total traffic up 6.2 per cent 

on 2011, at 754226 tonnes the best total 

tonnage and best annual growth in any 

quarter since the first quarter of 2011. 

The fourth quarter also saw high export 

figures: November’s 142,632 tonnes was 

the best in 2012, while December’s was 

the third best. 

The year saw the second best results in 

the air cargo hub’s history: 2,777,519 

tonnes up 2.1 per cent on 2011, and just 

4.2 per cent short of the company’s alltime 

record of 2,899,603 tonnes set in the 

post-recession bounce of 2010. 

44 February 2013

news 

Incheon Airport takes off with green 

initiatives 

Incheon International Airport Corporation in Seoul, South Korea has taken a positive 

environmental initiative by underwriting 50 per cent of the purchase price of more than 

7,000 biodegradable vinyl pallet covers used by the air cargo handlers. The project – 

started in 2009 under the Green Cargo Hub banner – began by supplying 400 lightweight 

air cargo containers to airlines and ground handlers in 2010, that reduced 28,000 tonnes 

in CO2 gas emissions. The adoption of environmentally friendly air cargo packaging 

materials is one more step in the initiative. 

FAA grounds B787 Dreamliners 

The US Federal Aviation 

Administration (FAA) has 

issued an emergency 

airworthiness directive 

(AD) grounding all 

US-domiciled B787 

Dreamliners following a 

series of battery incidents. 

The most recent involved 

an All Nippon Airways 

(ANA) flight which made 

an emergency landing. 

A string of issues in 

recent weeks have raised questions about the B787, which is the first major aircraft 

grounding since 1979. Dreamliners have suffered incidents including fuel leaks, 

a cracked cockpit window, brake problems and an electrical fire. However, it is the 

battery problems that have caused the most worries. The lightweight, mainly carboncomposite 

aircraft has been plagued by mishaps, raising concerns over its use of 

lithium-ion batteries and forcing many airlines across the globe to ground them. 

This grounding follows an 11 January 2013 announcement that the regulatory 

agency and Boeing would conduct a joint design and production review of the aircraft. 

Boeing subsequently issued a statement expressing confidence that the B787 is safe 

and its intent to stand behind the aircraft’s overall integrity. 

New UPS Express 

Service offers 

faster international 

shipping 

UPS has announced a new express 

air freight service, UPS Worldwide 

ExpressFreightSM, for urgent, timesensitive 

and high-value international 

heavyweight shipments. This new service 

is an extension of the UPS Worldwide 

Express package portfolio and offers 

customers a seamless experience 

between shipping express package and 

express freight. 

Customers now can ship pallets over 

70 kg (150 lbs.) as easily as packages 

exclusively within UPS’s global air network 

from 37 origins – including United Arab 

Emirates – to 41 destination countries and 

territories. This day-definite, door-to-door 

service with a money-back guarantee 

features some of the fastest times in 

transit in the industry, including overnight 

shipping from Europe, the Asia Pacific 

region, and the Americas to the United 

States. Two-day shipping is available 

to Europe from Asia Pacific, the United 

States, and the Americas. 

UPS Worldwide Express Freight 

service offers many of the same features 

as UPS’s Worldwide Express package 

service, including automated shipment 

preparation, online tracking and proactive 

notification technology. In addition, both 

express freight and package shipments 

are consolidated into one bill. 

“Global commerce is vital for our 

customers and UPS Worldwide Express 

Freight helps companies get to market 

faster, capture more business and boost 

their competitiveness,” said Ed Buckley, 

UPS President of Marketing. UPS is 

a global leader in logistics, offering a 

broad range of solutions including the 

transportation of packages and freight. 

Headquartered in Atlanta, UPS serves 

more than 220 countries and territories 

worldwide. 

February 2013 

45

NEWS 

Maersk Line wins 

‘Shipping Line of 

the Year’ Award in 

Singapore 

Maersk Line recently won the ‘Shipping 

Line of the Year 2012’ Award instituted 

by Supply Chain Asia, SCA, a Singaporeregistered 

non-profit supporting the 

growth and development of the supply 

chain and logistics industry. It works with 

various sectors such as carriers and liners, 

infrastructure, retailers, government, and 

others. The company was judged best 

in class among operators in the region. 

Finalists included APL, Cosco, Hanjin, and 

Yang Ming. 

John Corris, Head of Regional Key Client 

Management, accepted the trophy from 

SCA on behalf of Maersk Line Asia Pacific 

Chief Executive Thomas Knudsen. “It is an 

honour for Maersk Line to win such an 

award. It validates our commitment to 

our clients to be a trusted and responsible 

partner now and always,” Corris said. 

Knudsen, for his part, said the 

recognition is a nod to the company’s 

unmatched service reliability and success 

in doing business in a sustainable 

manner. “We have been the most reliable 

carrier across all trades for six consecutive 

quarters. In terms of our environmental 

performance, through initiatives such as 

slow steaming, waste heat recovery, fleet 

and trim optimisation, we have reduced 

our CO2 emission per container moved 

by 16% since 2007.” 

Maersk Line’s John Corris, 

Head of Regional Key Client Management, receives 

the award from Supply Chain Asia 

New UPS Express Service offers faster 

international shipping 

UPS has announced a new express 

air freight service, UPS Worldwide 

ExpressFreightSM, for urgent, timesensitive 

and high-value international 

heavyweight shipments. This new service 

is an extension of the UPS Worldwide 

Express package portfolio and offers 

customers a seamless experience between 

shipping express package and express 

freight. 

Customers now can ship pallets over 

70 kg (150 lbs.) as easily as packages 

exclusively within UPS’s global air network 

from 37 origins – including United Arab 

Emirates – to 41 destination countries 

and territories. This day-definite, door-todoor 

service with a money-back guarantee 

features some of the fastest times in 

transit in the industry, including overnight 

shipping from Europe, the Asia Pacific 

region, and the Americas to the United 

States. Two-day shipping is available to 

Europe from Asia Pacific, the United States, 

and the Americas. 

UPS Worldwide Express Freight 

service offers many of the same features 

as UPS’s Worldwide Express package 

service, including automated shipment 

preparation, online tracking and proactive 

notification technology. In addition, both 

express freight and package shipments are 

consolidated into one bill. 

“Global commerce is vital for our 

customers and UPS Worldwide Express 

Freight helps companies get to market 

faster, capture more business and boost 

their competitiveness,” said Ed Buckley, 

UPS President of Marketing. UPS is a global 

leader in logistics, offering a broad range 

of solutions including the transportation 

of packages and freight. Headquartered 

in Atlanta, UPS serves more than 220 

countries and territories worldwide. 

Oman grants USD $ 130m Port Sohar contract 

to Hong Kong’s Hutchison Whampoa 

Oman›s Port of Sohar announced that a 

USD130 million contract has been granted 

to Hong Kong’s Hutchison Whampoa 

to set up and operate a port terminal in 

Sohar, according to a recent media report. 

It added that the company will be also in 

charge of managing the terminal after 

completion, which is expected at the end 

of 2013. 

The new terminal is projected to increase 

the port›s capacity to 1.5 million TEU (20ft 

equivalent units) from the current 800,000 

TEU. Following the expansion, Sohar 

will be placed in a competitive position 

for shipping lines that will bring their 

cargoes with direct lines to the country. 

Furthermore, Oman will be viewed as 

a gateway centre for these firms› transshipment 

cargo in the region. It is worth 

noting that Sohar is home to a number of 

major industries, including an aluminium 

smelter and a free zone. 

February 2013 

47

NEWS 

Al Futtaim wins major 

MEP contract in Qatar 

from Aspire Logistics 

Al-Futtaim Engineering, one of UAE›s 

leading multi-disciplinary engineering 

organisations, announced that its Qatar 

operations under the name Hamad and 

Mohamad Al Futtaim has signed a fiveyear 

Mechanical, Electrical and Plumbing 

(MEP) maintenance contract with Aspire 

Logistics. Owned by the Qatar government, 

Aspire Logistics is a strategic business unit 

of Aspire Zone Foundation, responsible for 

building, operating and managing sporting 

facilities in the state of Qatar. 

Hamad & Mohamad Al-Futtaim was 

awarded the contract for the sports complex 

which is host to major international sporting 

events in the Peninsula state. Dawood 

Bin Ozair, Senior Managing Director, 

Electronics, Engineering and Technologies 

believes Al-Futtaim Engineering›s history 

of successfully delivering maintenance 

contracts has led to the company being 

recognised as a preferred main contractor 

in the region. 

He noted that this contract was an 

important step for what is regarded as one 

of the fastest growing construction markets 

in the world. The sports complex is expected 

to play a central role in the build-up to the 

2022 FIFA World Cup and for the country›s 

ambition to become a major regional and 

international player in the field of sports. 

Hamad & Mohamad Al-Futtaim›s other 

high-profile MEP projects in Qatar include 

the Burj Al Marina within the Lusail City 

development, IKEA which is located at 

Doha Festival City and the Heritage Quarter 

which includes a Mosque, a prayer hall 

and heritage houses. Under the umbrella 

of MEP maintenance the company has 

many prestigious projects including 

Qatar National Convention Centre, Hyatt 

Plaza Shopping Mall, Landmark Group’s 

showrooms and Al Fardan Properties 

among others. 

Gulftainer handles world’s largest 

container ship at Khorfakkan Port 

(L-R) : Captain Igor Sikic of the Marco Polo, Sheikh Khalid Bin Abdullah Bin Sultan Al Qassimi, Chairman 

of the Sharjah Ports Authority & Peter Richards – Managing Director, Gulftainer Group 

Khorfakkan Container Terminal (KCT) 

located in the Emirate of Sharjah along 

the Gulf of Oman on the east coast of the 

UAE recently became the first terminal 

operator in the Middle East to handle 

the world’s largest containership, Marco 

Polo, owned by the CMA CGM Group. 

With a length of four standard football 

pitches (396 metres), 54 metres beam 

and requiring a draft of 16m, Khorfakkan 

is one of the few ports in the world able 

to accommodate Marco Polo’s massive 

16,020 TEU capacity. 

Having seen volumes increase by 26 per 

cent at Khorfakkan in 2012, Gulftainer has 

ensured it stays ahead of the trend and 

the terminal is well prepared to handle 

mega-containerships beyond the 16,000 

TEU handling capacity. 

“The size of containership vessels is 

only expected to increase,” says Group 

Managing Director of Gulftainer, Peter 

Richards, “as clients demand more 

cost effective movement of cargo, and 

operators demand greater fuel efficiency. 

The Marco Polo final port destination is 

Ningbo, China covering a total distance of 

approximately 20,000 nautical miles since 

the commencement of its voyage. It is the 

first of a series of three 16,000 TEU vessels 

from CMA CGM, that will all be named after 

great explorers. Khorfakkan Container 

Terminal is an ideal trans-shipment hub 

with numerous feeder ship connections 

to Gulf Ports, Europe, Indian subcontinent 

and East Africa. Khorfakkan’s location 

makes it an obvious choice for shipping 

lines with large trans-shipment volumes, 

which also require easy access to the UAE 

hinterland. 

48 February 2013

NEWS 

DIP records colossal rise in commercial 

space allotments in 2012 

Dubai Investments Park (DIP), the largest 

integrated business and residential 

community in the Middle East, wholly 

owned by Dubai Investments, registered 

an 87 per cent increase in commercial 

space allotments over a total leased area 

of 1.6 million square feet in 2012. In all, 

290 new companies joined the Park over 

the calendar year, bringing the total tally 

of tenants within the industrial and commercial 

zones to 2,715. 

The commercial interests in rental options 

in the location have also seen a 

steady increase, with office and storage 

spaces attracting high demand. Through 

the year, 220 warehouses, spanning over 

1.4 million square feet were rented out. 

Furthermore, an aggregate of 54 office 

spaces comprising 87,000 square feet 

and 16 showrooms at 100,000 square 

feet were let out. The commercial spaces 

at DIP are offered at competitive prices 

that are highly preferred by prospective 

clients. The additional benefits of quality 

and ease of access within Dubai and 

to potential markets in the neighbouring 

emirates and the wider region make the 

Park an ideal investment destination. 

Omar Mesmar, General Manager, Dubai 

Investments Park, commented: “Investor 

confidence has returned to Dubai in a major 

way, which is underlined by the progressive 

changes taking place in the public 

and private sectors. With businesses 

looking to take calculated risks, based on 

the lessons learned from 2008, their focus 

is on using the best available resources in 

the most optimal manner.” 

The outlook for 2013 is promising for 

the mixed-use development with the 

educational institutions in DIP numbering 

up to five and boasting an enrolment of 

more than 6,000 students. This high uptake, 

in turn, is influencing the demand 

for residential properties within the Park, 

which is also attracting a gamut of retail 

offerings to serve the growing number of 

residents at DIP. 

Dubai Investments Park is one of the 

largest business and residential communities 

in the Middle East. Strategically 

located within minutes from the Jebel Ali 

Port and Al Maktoum International Airport, 

DIP is a self-contained city offering 

state-of-the-art facilities and world-class 

infrastructure. 

CIS, Eastern 

Europe fuel 

flydubai’s growth 

Dubai’s passenger traffic from the 

CIS and Russia increased by 34 per cent 

year-on-year in the third quarter of 2012, 

predominantly as a result of flydubai’s 

on-going expansion. The low-cost airline 

now operates to 16 destinations in 

the region including Armenia, Azerbaijan, 

Georgia, Kyrgyzstan, Macedonia, 

Romania, Russia, Serbia, Turkmenistan 

and Ukraine. 

More than 40 per cent of flydubai’s 

route development in 2012 concentrated 

on CIS and CEE (Central and Eastern 

Europe) regions. The figures were released 

as the carrier launched five-times 

weekly flights to Malé in the Maldives. 

GCC business, with passenger numbers 

up 65 per cent year-on-year, is another 

key factor in the airline’s growth and it 

now operates 265 flights per week to 

Bahrain, Kuwait, Oman, Qatar and Saudi 

Arabia. 

Ghaith Al Ghaith, CEO, flydubai, highlighted 

Dubai’s east-meets-west gateway 

status, popular year-round tourist 

appeal, and position as a financial and 

logistics centre, as factors underpinning 

its growth. The airline operates a fleet of 

28 Boeing 737-800 aircraft. 

February 2013 

49

NEWS 

Qatar to Invest USD $ 

390 Million in Nigeria’s 

Transport Sector 

Olusegun Aganga 

Qatar, has expressed interest to invest 

USD $ 390 million dollars in Nigeria›s 

transport sector in 2013. Olusegun 

Aganga, the Nigerian Minister of Trade 

and Investment, who disclosed this in a 

recent press interview in the country’s 

capital Abuja, said the two countries 

had concluded arrangements to sign a 

memorandum of understanding (MoU) 

on the new investment. He said that 

the move would create thousands of 

employment for the West African nation›s 

teeming youths. 

“Nigeria and Qatar have concluded 

arrangement on the investment plan. 

Qatar is expected to invest USD$390 

million in logistics and transport sector of 

our own economy,” Aganga said. He said 

the construction industry would as from 

the 2013 fiscal year, witness a boom as 

the Federal Government would roll out 

policies that would make cement available 

at affordable prices. 

According to the minister, the new 

economic measure would entail a ban 

on importation of cement and the 

rolling out of a new set of rules that 

would force down the price of cement. 

“The Federal Government is making the 

move in fulfilment of President Goodluck 

Jonathan’s determination to make Nigeria 

one of the leading cement exporting 

countries next year.” He further said. 

Blue Ocean confers prestigious international 

certification on UAE SCL professionals 

Blue Ocean Academy, UAE’s 

leading management training and 

consulting company recently held its 

first convocation for the year 2013. 

There were celebrations galore as 150 

students drawn from different areas of 

specialization, Logistics and Supply Chain 

to Six Sigma and Contracts Management, 

Human Resources and Cabin Crew, 

passed out with top honours. 

The glittering ceremony was held in 

the backdrop of the Park Regis Hotel in 

Dubai and well attended by Blue Ocean 

students, patrons, alumni and faculty 

members. The certificates were conferred 

by Blue Ocean Executive Director, Sathya 

Menon. 

Speaking on the occasion Abdul Azeez, 

Director Blue Ocean, congratulated 

students for earning a top-notch 

international qualification that would 

hold them in good stead throughout 

their career. “This international 

qualification will take you places and 

open up windows of opportunities you 

never knew existed. An international 

certification is an instant passport 

to success in a multi-cultural work 

environment,” he highlighted. 

Blue Ocean boasts of an alumni network 

of 40,000 plus students worldwide and is 

credited with imparting futuristic skills 

to a new generation of leaders in the 

UAE, Kingdom of Saudi Arabia, Qatar, 

India and Sri Lanka. 

The convocation ceremony proved to 

be a proud occasion for all the graduating 

students and their family member. The air 

was charged with emotion with most of 

the graduates arriving with their spouses 

to receive their prestigious international 

certification. 

The premium certification tags 

conferred on the students included 

the Certified International Supply 

Chain Professional and the Certified 

International Supply Chain Manager 

from the International Purchase and 

Supply Chain Management Institute, 

USA; Six Sigma Green and Black Belt from 

International Quality Federation, US 

and Certified International Commercial 

Contracts Manager from International 

Purchase & Supply Chain Management 

Institute US among other certifications. 

Nagabhushan Balaji, Executive Vice 

President, Head of Internal Control, 

Legal & Compliance, Dubai First, was the 

keynote speaker at the convocation. He 

helped students understand the basic 

tenets of being a good leader, a team 

leader and a manager. 

50 

February 2013

NEWS 

Global ports industry to convene at Abu Dhabi conference table 

Global ports, key industry players 

and members of the International 

Association of Ports & Harbours (IAPH) 

will return to the UAE capital from 19-20 

March 2013, as the third annual edition 

of the World Ports & Trade Summit - held 

in strategic partnership with the Abu 

Dhabi Ports Company (ADPC) - brings 

the industry together to discuss the 

changing dynamics of seaborne trade 

development. 

Taking place at the five-star St Regis 

Saadiyat Island Resort, the two-day 

summit agenda will deliver a hardhitting 

programme of conference 

sessions designed to promote trade 

development, examine supply chain 

management systems and discuss port 

efficiency, with a number of exciting new 

panel discussions covering break-bulk, 

project cargo and heavy lift, waterborne 

tourism and marina development, as 

well as the introduction of a special 

Africa Focus. 

News that major ports across the 

GCC are set to see growth of more 

than five per cent by 2017, has seen 

the region’s maritime trade landscape 

being reshaped as governments and 

private sector investment accelerate 

the development of ‘next generation’ 

terminal facilities to open up a new era 

of economic opportunity. 

“Abu Dhabi and the Gulf region 

continue to strengthen its position as a 

major player on the international ports 

and trade stage, and with increased 

intra-regional connectivity on the 

infrastructure agenda, attention is 

shifting from West to East as billion dollar 

initiatives such as Khalifa Industrial 

Zone Abu Dhabi (KIZAD) lead the way 

for future commercial opportunity and 

continued economic diversity,” said 

Capt. Mohamed Al Shamisi, Executive 

Vice President- Ports Unit, ADPC. 

“With commercial activities now 

underway at our flagship Khalifa Port, 

the emirate has opened up its new 

gateway. Home to the only semiautomated 

container terminal in the 

entire Gulf region, as well as six of the 

world’s largest ship-to-shore cranes, 

the commencement of operations at 

Khalifa Port, and the launch of KIZAD, 

form a logistical hub that is an integral 

component in the Gulf-wide agenda 

for ports and trade development into 

the next decade,” said Capt Al Shamisi, 

ADPC. 

“Khalifa Port will also be the first 

port in the region to connect with the 

Etihad Rail freight network, which is 

forecast to launch in 2015-16. This will 

not only facilitate cargo transportation 

within the UAE, but heralds the start of 

intra-regional networking capabilities 

across the GCC,” Capt. Al Shamisi added. 

Organised by Seatrade, the World Ports 

& Trade Summit is held in strategic 

partnership with the Abu Dhabi Ports 

Company (ADPC). 

KIZAD welcomes first 3PL company with USD $ 74m investment 

Khalifa Industrial Zone Abu Dhabi 

(KIZAD) today announced the first third 

party logistics company tenant. A 50 

year Musataha Agreement (legal right 

to build on and retain the building on 

another person’s land for a fixed term 

of years) was signed by Khaled Salmeen 

Al Kawari, CEO and Managing Director 

of KIZAD, and Alaa Ibrahim, President & 

CEO, IBR Group Inc. 

IBR Group Inc. will be assigned a 

474,128.73 square feet plot in the 

logistics free zone cluster in KIZAD’s Area 

A and will set up a temperature controlled 

supply chain building on KIZAD’s existing 

distribution service offerings. By signing 

with KIZAD, IBR Group, with offices in 

UAE, Germany, Canada and Qatar, will 

have the opportunity to provide value 

added services to leading local and 

international organizations also investing 

in KIZAD. IBR’s investment in KIZAD for 

this specific project is estimates at USD $ 

74m (AED 270m). 

Commenting on IBR Group’s 

investment, Khaled Salmeen said: 

“IBR’s investment in KIZAD’s free zone 

will allow us to further develop our 

distribution hub, making KIZAD an ever 

more appealing destination for business 

partners dependent on cold storage and 

transportation. This agreement is yet 

another step towards making KIZAD the 

industrial zone of choice in the region.” 

Amr Ibrahim, COO and Partner, IBR 

said: “ With our trust in the importance 

of KIZAD, we are planning to build the 

largest freezers in the region that will 

be ready to serve our clients by August 

2014 as construction works have already 

begun. KIZAD’s access to global markets 

means that IBR will be able to assist 

local and regional businesses get their 

products to market quicker and more 

efficiently.” 

IBR Group Inc. is a privately owned 

Canadian engineering and project 

development company that has had a 

presence in the Gulf region since 1994 

and offices in UAE, Germany Canada 

and Qatar. KIZAD provides outstanding 

access to global markets through its 

world class infrastructure, low operating 

cost environment, through highly 

competitive utilities and land leasing 

rates and ease of doing business provided 

through the One-Stop-Shop and the new 

online portal where all applications can 

be tracked & monitored. With KIZAD’s 51 

sq. km. of Area A complete, many of its 

investors have begun mobilizing on their 

respective plots where work is underway 

to construct their manufacturing plants. 

February 2013 

51

NEWS 

Emirates SkyCargo 

makes new appointment 

First phase opening of new Hamad Int’l 

Airport in Doha scheduled for 1 April 2013 

Moaza Al Falahi 

Emirates SkyCargo has announced 

that Moaza Al Falahi will take on the 

role of Vice President Cargo Business 

and Product Development for Emirates 

SkyCargo, having gained valuable 

industry knowledge and insight working 

with Emirates since 2003. 

“In her new appointment, Moaza will 

be managing the SkyCargo product 

line, as we continue to invest in our 

fleet and expand our route network,” 

stated Ram Menen, Emirates Divisional 

Senior Vice President Cargo. “Moaza’s 

experiences across the business, from 

Information Technology to Performance 

Management, stand her in good stead to 

take on this divisional leadership role,” he 

added. 

Embarking on a career with Emirates, 

Moaza enrolled on the company’s 

Graduate Training Programme for 

UAE Nationals with the Information 

Technology Department. She then went 

on to take on a Flight Analyst role – gaining 

valuable commercial experience – before 

working with SkyCargo in a Performance 

Development Manger capacity. In 

remarking on her new appointment, 

Moaza said, “I am looking forward to both 

developing and expanding the SkyCargo 

product line, hoping to build on the 

current successes of the division.” 

Qatar has confirmed that preparations 

are well underway for the April 1 first 

phase opening of the new Hamad 

International Airport in the nation’s 

capital. The new hub, formerly known as 

the New Doha International Airport, will 

be operated by national carrier Qatar 

Airways. 

Qatar’s Civil Aviation Authority (QCAA) 

said 12 international airlines will become 

launch carriers at the new facility from 

1 April 2013. QCAA Chairman Abdul 

Aziz Al Noaimi said the launch airline 

would include low-cost carriers, without 

elaborating. Qatar Airways will move its 

entire operations to Hamad International 

Airport in the second half of the year, he 

added. 

Al Noaimi said: “Hamad International 

Airport will truly be a global showpiece 

that the State of Qatar will justifiably 

be proud of. The airlines that we will 

shortly welcome to Hamad International 

Airport will make history becoming the 

first commercial operators of flights to 

and from the world’s newest aviation 

hub from April 1. A new workplace and 

stunning architectural masterpiece will 

enhance the skyline of Doha providing 

new surroundings for airport employees 

and the travelling public from around the 

world.” 

Al Noaimi said that the cargo 

operations and catering facilities will be 

ready for operations within weeks. From 

March, freight forwarders and agents 

in Qatar will process import and export 

consignments at Hamad International 

Airport. Cargo uplift and arrivals will 

remain at Doha International Airport from 

where shipments will be transported 

by road to the new facility. Cargo flights 

operated by Qatar Airways and other 

freighter companies are expected to 

begin to and from Hamad International 

from the summer. 

He added that trials of various facilities 

involving passengers and cargo have 

been in place for over six months. “We 

are confident that we will have a fully 

functional and highly efficient airport to 

welcome our national carrier Qatar Airways 

when they move to their spectacular 

new home towards the second part of 

the year.” Hamad International Airport 

will accommodate 28 million passengers 

annually when it opens this year, increasing 

to 50 million beyond 2015. 

Qatar Airways CEO Akbar Al Baker said: 

“2013 will be a historic year for the State 

of Qatar, Qatar Airways and the country’s 

young aviation industry. Qatar Airways, 

as the operator of the new Hamad 

International Airport and main user of 

the facility, looks forward to welcoming 

airlines and passengers to the airport in 

just a few weeks’ time opening up a new 

era for our country.” Later this year, Qatar 

Airways will move its entire operations to 

Hamad International Airport, as all airport 

lounges are expected to be ready and 

fully operational by then. 

52 February 2013

NEWS 

DP World steams ahead with 2.4% growth in container volume 

Global port and container terminal 

operator DP World on Tuesday announced 

a 2.4 per cent increase in its annual 

container throughput to 56.1 million 

twenty-foot equivalent units (TEUs) across 

its global portfolio in 2012, over the prior 

year. Adjusting for the divestment of four 

joint venture terminals during the year for 

gross container volume growth was 3.7 per 

cent ahead of last year. 

“This annual increase in gross container 

volumes was driven by a good performance 

from the Americas, Asia Pacific and Middle 

East regions where the focus on delivering 

improved efficiencies and productivity 

attracted more containers into our ports,” 

the Dubai-based DP World said in a 

statement released today. The UAE region 

continued to operate at very high levels of 

capacity utilisation, increasing the number 

of containers handed to 13.3 million TEUs 

for the year. 

“During the year, the deteriorating 

macroeconomic environment and high 

levels of capacity utilisation, led us to 

change our short term strategy to focus 

more on high quality revenue generating 

business, and giving our customers the 

quality of service they are accustomed to 

with DP World,” Sultan Ahmed Bin Sulayem, 

DP World Chairman said. 

The company, which is expanding 

its capacity in Jebel Ali port, had sold 

its Australian port assets last year. DP 

World’s portfolio of consolidated terminals 

handled 27.1 million TEUs during 2012. 

“Had the five terminals in Australia not 

been deconsolidated from 12 March 

2011, the consolidated terminals would 

have delivered 0.9% growth ahead of the 

prior year. Like for like growth across the 

consolidated portfolio was 0.7 per cent,” 

DP World said. 

The company is also investing in 

increasing capacity in Santos (Brazil) and 

London Gateway (UK), along with its home 

base in the UAE. 

“After a strong start to the year we 

had a challenging second half. Our tight 

focus on cost management and higher 

quality revenue mean we still expect to 

achieve EBITDA in line with expectations 

for 2012. Lower net financing charges 

will benefit reported profit before 

tax,” Mohammed Sharaf, Group Chief 

Executive, commented. 

DP World operates over 60 terminals 

across six continents, with container 

handling generating around 80 per cent of 

its revenue. With a pipeline of expansion 

and development projects in key growth 

markets, including India, China and the 

Middle East, capacity is expected to rise 

to around 103 million TEU by 2020, in line 

with market demand. About 80 per cent 

of the global trade is seaborne. Shipping 

lines› annual contribution to global 

economy is about USD $ 400 billion 

annually. 

Maritime World lowers DMC and Jadaf rates 

Maritime World has announced the 

reduction of tariff rates along all aspects of 

the business at Dubai Maritime City (DMC) 

and Jadaf with effect from January 2013. 

This is in light of Drydocks World Dubai’s 

30th Anniversary celebrations in 2013. 

The reduction from 2012 rates is aimed at 

facilitating the growth of the industry at 

the micro-level and increasing the repair 

and maintenance options available to 

small to medium size vessel-owners. 

“We are able to play our part in the 

growth and development of the industry, 

especially the small scale vessel owners, 

and offer greater value by enhancing 

the quality of service delivery. We have 

pledged our support to the small boatowners 

and to organisations such as 

the Dubai Fishermen’s Cooperative 

Association and other such association 

which benefit small commercial fishermen. 

They represent our rich maritime heritage 

and are in danger of being phased out 

by the great technological strides taken 

by the industry. Vessel owners registered 

with the Dubai Fishermen’s Cooperative 

Association will be entitled to a further 

10 per cent discount on certain services,” 

said Khamis Juma Bu Amim, Chairman of 

Drydocks World and Maritime World. 

DMC and Jadaf offer ship lift operation 

and technical support to vessel owners. The 

former has ship lifts capable of lifting 3000 

and 6000 tonnes and the latter, which is 

located adjacent to Dubai Creek and is one 

of the oldest shipyards in the region, has 

ship lifts that can lift 300 tonnes and 2400 

tonnes vessel deadweight. Both yards offer 

an extensive range of services through 

contractor companies based within the 

premises. There is a move to increase the 

berthing capacity at DMC ship lifts in the 

near future by adding 5 dry berths, each 

berth of 150 metres and wet berths by 200 

metres. This would help address increasing 

demand from the region. 

February 2013 

53

SCLG Leadership Composition 

Membership 

Corporate Membership 

Membership with the Supply Chain and Logistics Group (SCLG) is open to all organisations. Corporate 

members may nominate four to six members, depending on the category of membership 

- basic, privileged or premier - they opt for. All nominated members shall be allowed to vote at the 

Annual General Meeting (AGM) and at any Extraordinary General Meetings. The Board of Directors 

(BoD) and Executive Committee (EC) members shall decide the annual fees for membership. 

GLOBAL THOUGHT AND 

INDUSTRY LEADERS 

Individual Membership 

Open to any individual from any part of the world. The annual subscription shall be set from time 

to time as deemed necessary by the Board of Advisors and Executive Committee members. 

Student Members 

Open to students in Full Time Education only. Student membership shall not convey any voting 

rights to the individual. The annual subscription shall be set from time to time as deemed necessary 

by the Board of Advisors / Executive committee members. 

Why be an SCLG Member 

A membership allows access to educational training, seminars and networking evenings at 

concessional and rebated rates. It also provides rebates on subscription of membership to SCLG , s 

international partners. There is also a certificate that distinguishes a member as a professionally 

focused individual or enterprise committed to the cause of the supply chain and logistics industry. 

For more details, please visit our website on www.sclgme.org. If you wish to volunteer to help 

us foster a better supply chain and logistics community, please contact Kanchan Vora on admin@ 

sclgme.org. The SCLG Middle East is a non-profit organization working under the umbrella of the 

Dubai Chamber of Commerce and Industry to promote the cause of the supply chain and logistics 

industry. It brings opportunities for personal and professional development through networking 

prospects among like-minded professionals and corporations on a global basis. 

The SCLG was founded with the help of senior managment professionals representing a wide 

spectrum of industries in the supply chain. It strives to bring the best in education, seminars 

and interaction through partnerships and alliances with a variety of similar bodies across the 

globe. The Group , s official magazine, The Supply Chain and Logistics Link, addresses the needs 

of the supply chain professionals in the Middle East. It presents news, views, developments and 

information drawn from industry experts. The first of its kind in the region, The Link aspires to 

be a benchmark for the industry community, offering valuable insights and information to the 

target market. The magazine , s articles and news features cover innovative supply chain practices, 

emerging technologies, e-commerce and market information from industry leaders. 

Shashi Shekhar 

Founder & Group President SCLG 

Mohammad Sharaf 

DP World 

Michael Proffitt 

Clifford Cuttelle 

Mishal Kanoo 

Kanoo Group 

Fadi Ghandour 

Aramex 

Saadi Al Rais 

RHS Logistics 

David Wild 

Max Sales Solutions 

Mission 

To provide an accessible, dynamic, professional networking environment that facilitates the 

achievement of professional, educational and personal goals by members of the SCLG community 

in an atmosphere that encourages professional development, diversity, and innovation in the 

Supply Chain and Logistics Management. 

Objectives 

To promote the cause of the Supply Chain and Logistics industry and raise the overall standards 

of all industries on end to end supply chain. • To protect the interests of member organisations 

and support government bodies in formulation of policy framework for logistics organisations. 

• To encourage the free exchange of knowledge and skills relating Supply Chain and Logistics 

within the members of the organisation. • To provide all members an opportunity to network 

among each other and help facilitate an overall efficient commercial environment. • Undertake 

studies, compute and maintain information, statistical data and official documents relating to 

various aspects of Supply Chain and Logistics industry for the benefit of all. • To establish and 

maintain contact with similar organisations internationally and provide all members an opportunity 

to network with like- minded organisations / members across the globe. To conduct training 

courses, seminars, conferences and studies relating Supply Chain and Logistics; also establish a 

library and research centre relating this industry to expand the knowledge base. • To establish 

good relations with other professional groups or societies that exist or to be established locally 

or globally. • To promote the cause of education in Supply Chain and Logistics among nationals 

of UAE and thereby contribute to build a cadre of professionals and extra competent nationals to 

take up current and future challenges of the Supply Chain and Logistics industries. 

Sanjay Naik 

Emirates Group 

Jinendra Sancheti 

Vidal FZE 

Dr. John Gattorna 

Hamdi Osman 

Essa Al Salah 

Agility Logistics 

February 2013 

55

Meet the SCLG Leadership 

Profile 

Dr Kanak Mal Madrecha is currently the Principal Consultant & Managing Director, Dr Kanak Madrecha 

& Associates FZ LLE. Prior to this, he was the ex-Advisor, Corporate Excellence Division of the Municipality 

of Abu Dhabi City. He is a world class leader and professional in supply chain & logistics and business 

excellence. Dr Madrecha has been honoured by H.H. Sheikh Mohammed Bin Rashid Al Maktoum, 

Vice President and Prime Minister of UAE and Ruler of Dubai several times for his notable leadership 

contributions to business excellence movement in emirate of Dubai. He has been also awarded by several 

organizations for his leadership contributions to business excellence field in UAE/GCC. 

He is Ph.D. in Quality Management in addition to Post Graduate in Industrial Engineering from NITIE 

Mumbai (India) with 2nd rank and Graduate in Mechanical Engineering from BITS Pilani (India) with 

5th rank. He has a unique experience of combining work experience in diversified businesses, i.e. 

manufacturing, service, research, academics, assessment, auditing, training and consulting. His 30 years of experience has a 45:55 mix of 

working in India and UAE. His leadership assignments have led to significant improvements in productivity, quality, customer service, sales 

revenue, income, expenses, and profit. 

He has delivered several lectures at 

conferences and academic institutions both 

within & outside UAE (including on lean, six 

sigma, quality, business excellence, human 

development). He is a firm believer, practitioner 

and promoter of “Performance / Result Oriented 

Excellence Culture” within organizations. He 

leads a team of over 30 ‘International Advisors” 

from across the globe in regional/global 

development of SCLG and he was instrumental 

in convincing EFQM to invite Dubai World to be 

the only organization outside Europe as EFQM 

Pact member. He has widely traveled in USA, 

UK, France, Germany, Belgium, Finland, Saudi 

Arabia, Bahrain, Oman, Kuwait, Iran, Kenya, UAE 

and India. He is married with two children. He 

enjoys yoga & meditation . 

He has significantly contributed to the following organizations in different leadership capacities during last 17 years in UAE: 

1. Dubai Quality Award (DQA) – Team Leader & Jury (2000 onwards) 

2. Dubai Quality Group (DQG) – Board Member (1999-2001) 

3. Dubai Quality Group (DQG)-Continual Improvement Sub Group-Vice Chairman 

4. Dubai Human Development Award (DHDA) – Team Leader, Applicant & Assessor Trainer, Official Mentor & Jury 

5. Mohammed Bin Rashid Al Maktoum Business Award (MRMBA) - Assessor 

6. Sheikh Khalifa Excellence Award (SKEA)- Team Leader & Jury 

7. Supply Chain & Logistics Group (SCLG) – Founder Board Member/Global Development (2000 onwards) 

8 Supply Chain & Transport Award - Jury Member (2007 onwards) 

9. Council of Supply Chain Management Professionals (CSCMP) – Dubai RT President 

10. Velosi Quality Management International (VQMI) – Chairman of the Advisory Board 

11. The Kanoo Group – Projects & Quality Manager (The only organization to consistently win business excellence 

awards from 2000 to 2007) 

12. Dubai World – Practice Head-DP World (Business Excellence Center) (2007 to 2010) 

13. Municipality of Abu Dhabi City- Advisor-Corporate Excellence Division 

56 February 2013

Profile 

Meet the SCLG Leadership 

Tom Nauwelaerts, Managing Director, Al Futtaim Logistics (the logistics division of the Al 

Futtaim Group) in Dubai, is the consummate Supply Chain professional with a broad knowledge 

base in the Logistics Industry. Tom is also a member of the Board of Directors of SCLG. 

He developed his extensive 20 years of work experience through his various tenures in senior 

positions in Supply Chain Management at Hilti Corporation, his consultancy years at Deloitte, Cap 

Gemini and his leading roles in different freight forwarding and logistics companies—ALS Freight 

Forwarding and Ahlers Logistics & Maritime Services to name a few. 

Tom’s operational experience includes Supply Chain, Project Management and Business 

Development, with particular reference to Forwarding, Transportation and 3PL (Third Party 

Logistics). Tom’s broad and wide-ranging experience and specialties comprise an interesting 

combination of sales management, business development, strategy envisioning, management 

consulting skills, supply chain execution (SC network re-design, 3PL outsourcing, warehousing, 

transportation, RFID), people / operations management, project management and consulting skills with globally recognized top 

companies. He has extensive experience establishing and supervising strategic solutions and a proven ability to deliver innovative 

solutions that fully support corporate growth objectives. 

In his current position Tom oversees a team of 700+ people at Al-Futtaim Logistics, recognized as a strong player in the Middle East 

region offering a full portfolio of supply chain solutions that include warehousing & distribution, automotive logistics, road transportation, 

sea and airfreight forwarding. With an impressive track record to match, Tom has a very adaptive management style and he is well able 

to connect to all levels in an organization, from blue-collar to the CEO level. He has applied this expertise in a variety of different cultures, 

throughout Europe, Latin America and CIS / Asia during his career thus far. 

Tom, a Belgian national, has a degree in Business Administration from Katholieke Universiteit Leuven, a Dutch-speaking University in 

Flanders, Belgium and a degree in Nautical Sciences from Hogere Zeevaartschool in Antwerp, also in Belgium. 

February 2013 

57

Insight 

Water, water everywhere and none to drink— 

Samuel Taylor Coleridge in ‘The Rime of the 

Ancient Mariner’ 

The growing and serious paucity of fresh water in many parts of the world has 

ominous, apocalyptic implications and may spell devastation for communities 

across the globe. This dwindling precious resource and the continuing scarcity pose 

an enormous, ocean-size challenge for governments, planners, conurbations and 

populations. How do we bring relief to a parched, bone-dry land wracked by drought 

while endeavouring to preserve whatever little is left of this supply Shashi Shekhar 

muses on this subject as thirst emerges as the new threat—Editor 

Shashi Shekhar 

Founder & Group President SCLG 

President & CEO, innovaXL 

Water Supply Chain foot-Print: Are we 

ready to face brewing global fresh water 

crisis 

While researching on latest trend on 

sustainability, I was caught up with a 

topic that will significantly restructure 

composition of the supply chain and 

logistics landscape— this topic should be 

on agenda of supply chain and logistics 

leaders or must be on table on each citizen 

of globe. 

There is a crisis growing that will not only 

change entire supply chain and logistics 

scenario by year 2030 but will impact life 

of every individuals around the globe by 

influencing price trend of all commodities 

including food & energy leading to severely 

disruptive results in socio-economic 

balance. If enough attention is not paid by 

all in governance, public, private sector and 

to be precise by all inhabitants of globe, 

there are chances that we will be caught 

unaware with sudden crisis of supply of fresh 

water not meeting the demand; imagine the 

world without fresh water and you would 

feel yourself the horrific after-effects if we let 

this crisis take over human population in a 

city or a country or globally. 

Worldwide demand for fresh water 

tripled during last century and is now 

doubling every 21 years. In China, 80% 

of all major rivers have become severely 

polluted and unable to support aquatic lifeform. 

It is estimated that 75 percent of the 

surface water in India is now polluted by 

human and agricultural waste. 1 Kilogram 

of tomato links to 214 liters of estimated 

global water foot-print and 125 ml of wine 

is estimated to have a global average water 

foot print of 109 liters. 

“Economic growth is a thirsty business,” 

said Ban Ki Moon, the current Secretary 

General of the United Nations, before 

challenging his audience to form new crosssector 

partnerships to enable more food to 

be grown, more energy to be created and 

for greater industrial and manufacturing 

output – all with less water. Growth of 

economy in many developing countries has 

asked for growing demand of water and 

equation between supply and demand of 

water in many countries are changing for 

worse. 

Based on internal water uses, each 

corporation has its own water footprint and 

its own extended supply chain foot-print. 

While we see plenty of water around us the 

fact is only 2.5 % of total water resource is 

fresh water and out of which only less than 

1% is accessible fresh water. As urbanization 

and economy grow, the demand and supply 

equilibrium of this fresh water resource is 

getting horribly disturbed. 

By 2030, under the current system, 

there would likely be an average 40% 

gap between required demand and safe 

global supply of freshwater. This figure 

ranged from 17% in South Africa and 23% 

in Mexico to 50% in India. It was a stark 

warning of the scale of the economic and 

environmental challenge as presented by 

McKinsey & Company. 

This is evident that possible fresh water 

scarcity will directly fuel food scarcity. Water 

and food scarcity will be faced even before 

oil crisis—so agenda water, food and energy 

are now linked demanding attention on 

both water and carbon foot print. Any crisis 

can be dealt through informed decision and 

actions; I could notice many trends growing 

around us: 

• Organizations will now focus more on 

water supply chain footprint in addition to 

carbon footprint 

• There will be growth of production 

facilities for water treatment plants, sewage 

and industrial water disposal plant 

• The countries will start putting 

regulations around effluent treatment of 

industrial waste 

• Fresh Water now could see growth of 

international trade across the world— 

indicates more growth of international fresh 

water logistics 

• There will be growth of plants globally 

for converting sea-water into fresh water— 

some say this industry in coming decade 

will be bigger than the industry that grew 

up due internet. 

• Use of Atmospheric water generators 

for potable fresh water will start becoming 

common practice 

• The focus on fresh water will also trigger 

further growth of alternative energy sector 

• The countries which have already learnt 

and produced fresh water from sea water 

might gain early export advantage of fresh 

water—meaning GCC countries now can 

look into exporting water, electricity from 

solar & wind in addition to oil. 

(If you have comments on this subject or wish 

to contact Shashi Shekhar you can reach him on 

shashi.shekhar@sclgme.org) 

58 February 2013

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