RAK Free Trade Zone - SCLG

Editor’s NoteEdition 10 | Vol. 11 | November 2012Resilience re-definesthe Supply Chain & Logistics IndustryDespite the ubiquitous pall and talk ad infinitum of the ongoing global economic recessionand financial downturn, the emergence of numerous stories of buoyancy,pliability and revival from the supply chain and logistics industry in the region nevercease to amaze me. Everywhere I go, I am impressed with narratives of determinationand bounce back from the industry, defying the naysayers and prophets of doom andgloom.Which is not to imply that challenges and competition do not exist, in fact these arethe realities of the market-place and all-pervasive. However, companies are adaptingand re-adapting to new and ever-changing economic landscapes and emerging thestronger on this.Editorial, Content Provision & Print-ProductionPO Box 76575Dubai - United Arab EmiratesTel : +971 4 296 37 90Fax: +971 4 296 37 92Email: info.futurepathme@gmail.comDirectorKhalid Al FalasiGeneral MangerS. Punyamurthymurthy.futurepath@gmail.comEditorMalcolm Diasmalcolm.futurepath@gmail.comProject ManagerDavid Bhattacharjiedavid.futurepath@gmail.comArt / ProductionSolaimani Musarrat FatimaPhotographyEmmanuel AntonyThis is clearly established in all of the exclusive interviews conducted for this currentedition of The Link. On our foray to Ras Al Khaimah, Maryam Al Murshedi Al Shehhi,Deputy Director General, RAK Free Trade Zone, reported enormous interest in theZone’s offerings even as new registrations sky rocket and companies vie for a share ofthe economic pie in this scenic Northern Emirate of the UAE.Similar stories of growth and expansion plans were also heard and re-heard in encounterswith Rajiv ‘Roney’ Malhotra, the Regional Director of Airborne Express; Aniyan Kutty,Managing Director, Clarion Shipping Services and Ravi Punjabi, Managing Director,Avalon General Land Transport Company.Meanwhile Emirates SkyCargo is flying to new destinations down under (Adelaide inSouth Australia) and Lyon, furthering and consolidating its French connections. Etihadcommemorated its 9th birthday in style on 5 November 2012—Many happy returnsEtihad Airways! Wish you many, many happy flights and safe landings!! Additionally,flydubai has commenced cargo flights to Kuwait and Sharjah-based Low Cost carrier AirArabia continues to fly high with excellent passenger numbers and revenues.On the maritime front, DP World continues to create waves and is once more on the expansionspree. It has recently won a USD $ 200 million deal in India and bagged anotherin Turkey. The premier port operator has also been honoured with the coveted MaritimeInfrastructure Award at the recent 8th India Shipping Summit 2012 held in the country’scommercial capital Mumbai.The contents in this issue comprise a rich fare of regional and international reports; articlesand a case-study from experts in the know and a miscellany of interesting featuresthat reflect the vibrancy of the SC&L trade globally. From all accounts it certainly seemslike ‘business as usual’.Agree, disagree? Let us know. Keep those comments flowing.The LINK is the official publication of the SCLGME. Theopinions and views contained in this publication arenot necessarily those of the SCLGME as publishers. Nopart of this publication or any part of its contents thereofmay be reproduced in any form without the writtenpermission of the publishers.Malcolm DiasEditorNovember 201205

Cover Story: Ras Al Khaimah Risingsteadily made her way to the upper echelons of the organization.Maryam Al Murshedi Al Shehhi has been in charge of severaldepartments and portfolios before moving to her current positionin August 2008. Al Shehhi holds a Higher Diploma in BusinessInformation Technology from the Higher Colleges of Technologyfrom The Nottingham Trent University Business & TechnicalEducational Council (BTEC) in Britain. She also holds a Bachelor’sDegree in Applied Sciences from the Higher Colleges of Technology,Ras Al Khaimah Women’s College. She is currently completing herMaster’s Degree in Human Resources & Labour Relations at theMichigan State University, Dubai Campus.As a leader, she is known to work diligently for the advancementand development of the RAK FTZ. She is a staunch supporter ofEmiratization focusing on nurturing and empowering womenleaders in the organization and has been instrumental in enhancingthe numbers of Emiratis employed at RAK FTZ.The Link: A recent audited report by Pricewaterhouse Coopers(PwC) has revealed a year-on-year increase in new companyregistrations in the RAK FTZ. How does that translate into the numberof new companies registered and the percentage increase overcorresponding H1-2011 figures?Maryam Al Murshedi: Since its inception in 2000, the RasAl Khaimah Free Trade Zone has performed exceptionally well,consistently recording growth in triple–digits for several years now.RAK FTZ continues to be a magnet for new investments into theEmirate of Ras Al Khaimah thanks to the vision and foresight of HisHighness Sheikh Saud Bin Saqr Al Qasimi, UAE Supreme CouncilMember and Ruler of Ras Al Khaimah coupled with the investmentfriendlypolicies of the Government of Ras Al Khaimah, ourattractive economic model has been a magnet for new companieswishing to do business here in this Emirate and in the UAE.Despite the global recession and economic downturn, RAK FTZhas bucked the trend and new investments have been continuallygravitating into the Emirate. Prudent economic policies, financialand political stability, incentives and win-win propositions are the“The supply chain & logistics sector isan important area of operations for theRAK FTZ. I would however prefer to takea holistic picture of the industry. RasAl Khaimah’s geographical location isstrategic and we have three operationalports in the Emirate, a full-fledgedinternational airport and excellent roadand highway connections to the rest ofthe UAE and then on to the other GCC& Middle Eastern countries. The supplychain and logistics segment will continueto take a high profile role not only at RAKFTZ but also in the Emirate and the UAEand beyond. This is increasingly goingbeyond national and regional frontiersto becoming an inter-connected globalindustry.”hall marks of the RAK FTZ. Small and Medium Enterprises (SMEs)and individual entrepreneurs, the mainstay of our investor base,find our investment propositions attractive and have been comingin droves. In the first half of 2012, the RAK FTZ had a total of 1,145new registrations have been recorded as we continue to grow fromstrength to strength. This represents an increase of 4 % over the1,101 companies that were registered over this correspondingperiod in 2011.The Link: In value terms, how much revenues have been generatedfrom the new company registered and how does it compare with H1-2011 figures?Maryam Al Murshedi: Naturally revenues have surged and inpercentage terms the RAK FTZ has generated a 10.21 % increase inmonetary value over the corresponding H1-2011 period.The Link: From which countries are investments coming from?Maryam Al Murshedi: Currently, India tops the list and isthe leading foreign investor in the RAK FTZ and accounts justunder 30 % of all firms operating in the zone. Ras Al Khaimahwill continue to be attractive to investors from the subcontinentgiven the geographical proximity and also the strategic location ofthe Emirate. Other countries that constitute the top ten investornations in order of magnitude are the UK, Jordan, Pakistan, Egypt,USA, Turkey, France, Canada and Germany. However, our efforts areglobal and we make continual efforts to attract investments fromthe world over.The Link: What commercial / industrial sectors do these newcompanies represent?Maryam Al Murshedi: The vast majority, 62 % of newlyNovember 201209

Cover Story: Ras Al Khaimah Risingregistered companies represent the commercial sector followed byconsulting at 28 % and general trading at 9% in addition to otherinstitutions from the industrial and academic sectors.The Link: How are supply chain & logistics companies representedwith RAK FTZ and how significant is this sector for the RAK FTZ?Maryam Al Murshedi: The supply chain & logistics sector is animportant area of operations for the RAK FTZ. I would howeverprefer to take a holistic picture of the industry. Ras Al Khaimah’sgeographical location is strategic and we have three operationalports in the Emirate, a full-fledged international airport andexcellent road and highway connections to the rest of the UAEand then on to the other GCC & Middle Eastern countries. Thesupply chain and logistics segmentwill continue to take a high profile rolenot only at RAK FTZ but also in theEmirate and the UAE and beyond. Thisis increasingly going beyond nationaland regional frontiers to becoming aninter-connected global industry.The Link: Recently the Ambassadorsfrom the USA, Armenia, Kyrgyzstan andthe Turkish Economy Minister visitedthe RAK FTZ. Which countries are youtargeting for new overseas investments?Maryam Al Murshedi: We doget regular and periodic visits fromambassadors, the consular anddiplomatic corps, foreign trade officialsand other national and internationaldelegations. This helps us to forgeclose business and economic ties. Ouraudience is global and our enduringmessage is that Ras Al Khaimah is openfor business to anyone, anywhere inthe world.The Link: RAK FTZ has seen a steadyincrease in the number of universities registering with the free zone.What are your objectives and how are you leveraging this sector toattain these growth goals?Maryam Al Murshedi: The Government of Ras Al Khaimahas also the Federal Government accords a high priority to theeducation sector. Education is vital to our national growth andRAK FTZ is keen to make its mark in academia. The presence ofseveral key educational institutions is testimony to the importanceaccorded by RAK FTZ to building a sound educational base amongboth the national and expatriate population.The Link: How important is Corporate Social Responsibility (CSR)for RAK FTZ and can you substantiate this with one example?Maryam Al Murshedi: I am personally very passionate aboutgiving back to the community and involvement with philanthropicand humanitarian causes. As a conscientious, responsible corporatecitizen, RAK FTZ takes this role very seriously. As a leading corporateplayer in the emirate of Ras Al Khaimah, RAK FTZ recognises thatthe role of a major organisation within the community in whichit operates extends beyond economic contribution, and we arecommitted to delivering on its corporate social responsibilityobjectives across a number of key activities.RAK FTZ demonstrates its ongoing commitment by promoting,supporting, organising and participating in activities that nurturecommunity spirit, promote a balanced lifestyle and help preservethe emirate’s cultural and natural heritage. The cornerstone of RAKFTZ’s corporate social responsibility strategy is our focus on raisingawareness about environmental issues and the active measuresundertaken to protect the environment.Emphasising its role as a good corporate citizen, we undertooka number of Corporate Social Responsibility initiatives withinthe emirate and beyond in the first half of 2012. These includedsupport to RAK Half Marathon, RAK Terry Fox Walk, RAK TraditionalRowing Regatta, ‘Beat the Heat’ campaign and Iftar gatherings atlabour camps.RAK FTZ also played pivotal roles in some community initiativesin H1 2012, including the inauguration of a spa, support to theRamadan volleyball tournament, a can collection drive, sponsorshipof the Holy Quran competition and a football fiesta, among others.It also sponsored the 37th Arab Deaf Week activities, organised‘healthy food day’ for the RAK FTZ staff, several health awarenesscampaigns including breast cancer, stop-smoking campaigns,sports and recreational activities for staff and sponsored a charityIftar, apart from extending donations to a number of charityestablishments.The Link: How does RAK FTZ score and stand out vis-à-vis otherFTZ’s in the UAE? What are your Unique Selling Propositions (USPs)?Maryam Al Murshedi: Firstly, Ras Al Khaimah is a gateway toemerging markets. RAK FTZ offers aspiring entrepreneurs andbusiness owners’ ideal solutions to enter the Middle East market,and with the strategic location of the United Arab Emirates10 November 2012

Cover Story: Ras Al Khaimah Risingbetween Europe, Asia and Africa, investors can easily access themajor emerging world markets from Ras Al Khaimah.Presently, over 6000 SMEs from 106 Countries are housed in RAKFTZ. Since its inception in 2000, more than 6000 small and mediumsized companies have chosen RAK FTZ as the place to start theirbusiness in the UAE and GCC. We provide value-added services.RAK FTZ offers a wide range of extra services that cater to theunique needs of its clients that includes IT, marketing & creative,procurement, human resources services and more, designed toassist clients with the many different steps involved in setting upand running a successful business.Furthermore, we offer customized packages. Whether youjust need business license in order to distribute your products,offer consultancy services or looking for an office, warehouse orland for industrial activities, RAK FTZ will offer you the solutionthat matches your requirements. We are recognized for ouraward-winning services. RAK FTZ’s accomplishments have beenrecognised by a number of well-respected international businessorganisations such as the World Free Zone Convention for ‘BestWebsite Award’ Middle East Logistics Awards for ‘Best EmergingFree Zone’ in three consecutive years, by Supply Chain andTransport Awards for ‘Industrial Area of the Year’, and RAK FTZ’s PR& Media Department has been awarded Distinguished HonoreeMedal in the Communications Department of the Year category atthe 2011 International Business Awards (Stevie Awards).Additionally, our reach is international. RAK FTZ is the first andonly free zone with international Promotion Centres in India,Germany, Turkey and US that provides marketing and sales, clientsupport and administrative services. RAK FTZ is ranked one ofthe top Five Middle East Free Zones of the Future 2011-2012. fDiMagazine (the flagship publication for the fDi Intelligence portfolioand is published by The Financial Times) rated RAK FTZ fourth bestMiddle East Free Zone of the Future and third for Best EconomicPotential in the 2011-2012 ranking out of 115 free zones in theregion. We were also ranked one of the top 50 Global Free Zonesof the Future 2012/13. fDi Magazine rated RAK FTZ one of the top50 Free Zones of the Future in the Global Free Zones of the Futureranking awards.The Link: How is RAK FTZ part of the synergy of the other RasAl Khaimah Governmental institutions such as the RAKIA andRAK International Airport in promoting the Emirate’s economicdevelopment goals?Maryam Al Murshedi: All government departments in RasAl Khaimah work together to accomplish the vision of our Ruler,His Highness Sheikh Saud Bin Saqr Al Qasimi and to support theeconomic goal of the emirate. The free zones in RAK complementeach other in terms of what each of our entities offer to investors.RAK has a very positive and strong built environment. It has plentyof attractive points while encouraging clients and investors to getthe best option for tax-free investment and having transparentrules & regulations. RAK’s strong transport links and locationare being developed to their full potential and has a diversifiedeconomy, prudent policies, solid risk management policies andcautious approach. The Emirate has continued to focus on itsstrengths such as manufacturing and industry, supported by itsabundant natural mineral resourcesand tourism potential.We mirror this in our promotionstrategy in the international market.We are not only selling RAK FTZ butthe entire emirate when we attendexhibitions or trade shows in othercountries.The Link: What is your vision forRAK FTZ?Maryam Al Murshedi: RAK FTZwas set up with a vision to achieveglobal brand recognition as apremium free zone and investmenthub where customers find optimalbusiness solutions for their needs.We see a lot of potential forcollaboration with businesses inthe emerging economies and weare working towards making ourtrade cooperation stronger withcompanies across the globe.We are looking at boostingforeign direct investments, andencouraging and inviting a lot of global businesses to set upbase in RAK FTZ. This is being achieved through sustainedengagements with various trade bodies across the globe, tradevisits, participation in exhibitions and other initiatives. We are alsosupporting the vision of the Emirate Ras Al Khaimah and focusingin attracting industries to come to the emirate including tourism,health and education.November 201211

Transportation - Nissan NoveltyNissan’s bold new streamlined NV350 Urvanunleashes more motor power, cargo spaceIn the run-up to and against thebackdrop of the impending FormulaOne Etihad Airways Abu Dhabi GrandPrix at the prestigious Yas Marina Circuit thatoccupies a pride of place in the UAE capital,Nissan Middle East announced the dramaticunveiling in the Middle East of the fullyre-designed, versatile, voluminous, highpowerpremier commercial NV350 Urvan.The ceremonial unfurling of the NV350 waspresided over and orchestrated jointly byHideto Murakami, Corporate Vice Presidentand Norihiko Yagi, Chief Product Specialist,Light Commercial Vehicles (LCV) BusinessUnit, Nissan Motor Corporation, both basedat the company’s corporate headquartersin Yokohama, who flew into Abu Dhabispecifically for this purpose in the presenceof Atsuo Kosaka, Managing Director, NissanMiddle East, at a specially convened highpowerpress conference in the opulent andstately halls of the Yas Viceroy Hotel in theheart of the racing circuit complex.Available in both gasoline and dieselengine model variants with best-in-classfuel efficiency, the first time automatictransmission NV350 has a roomy, versatilecargo area with standard and wide bodyderivatives intended for significantdriver ergonomic comfort and featureenhancements. The all-new NV350 Urvansignificantly improves on previousgenerations with larger cargo space,lower running costs, manoeuvrabilityand enhanced driver and passengerconvenience. Featuring a strong, bolddesign, the new NV350 Urvan adoptsadvanced equipment for greaterconvenience and comfort than is currentlyavailable in commercial vehicles.“Nissan’s expertise in commercialvehicles spans more than eight decadesand today boasts one of the widest rangeof LCVs (Light Commercial Vehicles) in theworld serving a diverse customer basewith the broadest possible breadth ofrequirements,” enthused Murakami as hespoke glowingly of the new NV350 Urvan.“When developing the new NV350 Urvan,Nissan had to produce a vehicle flexibleenough to meet these needs while alsooffering class-leading durability, reliabilityand efficiency, whilst providing exceptionaldriver and passenger comfort. We believethe new NV350 Urvan achieves all this witha bold new design which will appeal to ourcustomers.”“The NV350 project marks an importantmilestone for Nissan and we hope themodifications and reinforcements go farenough in terms of the buyer, driver andpassenger expectations,” averred NorihitoYagi, the Chief Product Specialist in theProduct Strategy & Product Planning Groupof the company, who was tasked with theresponsibility to re-design and virtuallyre-engineer a vast array of technicalspecifications related to the vehicle model.Atsuo Kosaka, Managing Director, NissanMiddle East, was also enthusiastic andanimated about the company’s newestdelivery. Speaking on the occasion, he wasupbeat about the vehicle’s performanceand the ability to deliver. “The work-horseNissan NV350 Urvan’s combination oflow running costs, durability, large-loadcarriage and flexibility has been helpinglarge and small Middle Eastern businessesdeliver on time and on budget for fourgenerations. The new NV350 Urvan buildson this solid foundation by offering moretransmission options, body variants andinnovative features. With its refreshed andreinvigorated offering, Nissan Middle Eastis confident enough in the NV350 Urvan tohave set an ambitious target of doublingsales in the next three years,” he keenlycommented.The NV350 Urvan boasts smooth ingressand egress that are realised by the optimal12 November 2012

Transportation - Nissan Noveltypositioning of hand grips for both thedriver’s and front seats. The access to therear accommodation has been dramaticallyimproved by raising the height of thesliding door aperture. Other highlightsinclude improved legroom for all threefront passengers; dash-mounted gearshifterand vehicle information displayplaced at the centre of the meter panel.The NV350 Urvan’s newly-developed36.3kg/m (356Nm) YD25DDTi engine takesadvantage of clean-diesel technologyto achieve best-in-class fuel economywhich is 12% better than previous model.By changing the characteristics of theelectrically-controlled variable capacitycompact turbocharger, the engine isactually supercharged at low engine speedswhile the combination of high-pressurecommon-rail injection system and smallhole injectors generates higher torque fromlow to medium speed range. The result isenhanced ease of starting and responsiveacceleration across all engine speeds withfuel efficiency further improved by adoptingparallel-port cylinder heads that efficientlymixes air and fuel.The 2.5-litre in-line four-cylinder 147PS QR25DE gasoline engine also makesfull use of fuel-saving technologiesto achieve best-in-class economy. Bymonitoring the battery charging status, thealternator voltage can be decreased untilrequired, reducing power consumption. Incombination with low friction componentsand a lower idling speed, fuel efficiencyhas been improved by 9% compared withthe previous generation. A smooth fivespeedautomatic transmission is availablefor the QR25DE engine offering responsiveacceleration from start to high-speeddriving is also realized.The NV350 Urvan’s new exterior stylingfeatures a clean, modern design despiteits boxy proportions. The front end andcorners are rounded, with larger surfacesused for the body sides. The new layoutand extended wheelbase helps ensuremaximum cargo space and utility. TheNV350 Urvan offers ample load capacitywith cargo space length improved +145mm“Nissan’s expertise incommercial vehiclesspans more than eightdecades and todayboasts one of the widestrange of LCVs (LightCommercial Vehicles)in the world servinga diverse customerbase with the broadestpossible breadth ofrequirements.”STD body) / +230mm (Long body) andmakes maximum use of the larger cargospace for both occupants and cargo.On the side panel of the cargo space,luggage utility nuts are placed forcustomers to personalize cargo space fortheir convenience. For those requiring themaximum cargo area, a wide-body NV350Urvan derivative is offered to the MiddleEast for the first time. When combined withthe NV350 Urvan long-body, maximumload-space increases from the previousgeneration’s 7.7m3 to a cavernous 9.2m3.The new layout has maximum cargospace and stable, functional proportionscreated by a greatly-extended wheelbase(compared to the previous generationUrvan). It also flaunts a dramatic front enddesign with a three-dimensional, imposingangled strut grille. It has the distinctive rearcombination tail-lights and is available infive exterior colours, including the newTiger Eye Brown.At the occasion of this event, thecooperation between Red Bull Racingand Nissan was presented. Read BullRacing, which is based in Milton Keynesin the UK, is making use of Nissan lightcommercial vehicles. To assist with RedBull’s transportation needs, Nissan’s LightCommercial Vehicle Business Unit issupplying a fleet of more than 30 vehiclesand related services to the team. Nissansupport vehicles have been based at theteam’s UK headquarters and used for allEuropean events.Addressing the press meet, JonathanWheatley, the Red Bull Racing teammanager, commented: “Within sucha high-pressure and challengingenvironment as Formula One, we needreliable partners taking care of all ourversatile transportation needs all over theworld. Extensive travel is part and parcelof Formula One, and the transportationof our material and staff are an essentialpart of our successful operations. We arevery reassured that the NV350 Urvan hassupported us in our race operations at thisyear’s Japanese Grand Prix.”November 201213

There are increasinglyblurred boundarieswithin and acrossthe complex internationalorganisations that companiesdeploy in order to efficientlyplan, source, make and delivertheir products such that we arenow firmly in the domain of theglobal Supply Chain.EcosystemOn the basis that thesemodern-day supply chainecosystems inevitably involveseveral organisations workingtogether for a commonpurpose, then by natureof comprising multipleparticipants, modern-daysupply chains must inherentlyinvolve outsourcing in oneform or another.Integrating Global Supply ChainsEmpowering Global Supply Chain EcosystemsMark MillarSupply ChainEcosystemsAs a result of recent andrapid developments inworldwide commerce, we haveseen supply chains evolveinto complex internationalnetworks, which can no longerbe adequately, described usingthe linear concept of a ‘chain’.The depth and breadth ofcomplexity, connectivity andinter-dependencies involved intoday’s international commercehas resulted in the emergenceof ‘Supply Chain Ecosystems’–globally inter-weaved, multilayerednetworks of partners,suppliers, regulators, serviceproviders and customers.Within these ecosystems,each configuration is uniqueto the particular enterprisethat owns that supply chain.The ecosystem’s chosenparticipants are all coupledtogether for the commonpurpose of providing an endto-endchannel of distributionall the way from the suppliersof materials and components,extendingthroughmanufacturing processes– whether in-sourced oroutsourced to the distributorand retailer and then ultimatelyto the consumer.Each commercial enterpriseforms its own distinctive supplychain ecosystem, adopting adifferent composition of similarparticipants, or in several cases,“As a result of recent and rapid developmentsin worldwide commerce, we have seensupply chains evolve into complex internationalnetworks, which can no longer be adequately,described using the linear concept ofa ‘chain’. The depth and breadth of complexity,connectivity and inter-dependencies involvedin today’s international commerce has resultedin the emergence of ‘Supply Chain Ecosystems’–globallyinter-weaved, multi-layerednetworks of partners, suppliers, regulators,service providers and customers.”particularly within industrysectors, many of the sameparticipants. Thus it goes on,so that numerous multi-layeredcross-enterprise connectionsgenerate a complex web ofinterdependencies, frequentlyspanning the globe, inorder to optimise the threecritical attributes that drivedifferentiation within thesupply chain ecosystem–speed, agility and resilience.As modern supply chainsincreasingly resemble complexecosystems rather thanlinear chains, the suppliers,manufacturers and serviceproviders that work togetherto service one client’s supplychain, may in fact be fiercelycompeting against each otherto win business to provideservices for a different client’ssupply chain. Indeed, whilsteach company has its ownsupply chain ecosystem overwhich they have control, thesame company will most likelybe a participant in several othersupply chain ecosystems for itscustomers and suppliers.For global businesses, thesupply chain is increasinglybecoming a key source ofcompetitive advantage anddifferentiation. Brands needsupply chains that enableand empower them to gettheir product to market moreefficiently and faster than thecompetition. Businesses arenow competing on the basis oftheir supply chain managementcapabilities almost as much astheir product or their brand.In this context, organisationsmust develop the capabilitiesto effectively work withmultiple partners in orderto successfully operate andexecute their supply chain14 October 2012

Integrating Global Supply Chainsecosystems, thus leading toan increasing trend to supplychain outsourcing.Supply ChainOutsourcingDefined as ‘the act of onecompany contracting withanother company to provideservices that might otherwisebe performed by in-houseemployees’, outsourcing isgenerally undertaken in orderto benefit from using anexternal provider - typicallythrough gaining economicadvantages and leveragingspecialist expertise.In our globalised world,outsourcing is often confusedwith offshoring. Howeveroutsourcing is still outsourcingirrespective of where theoutsourced services areactually performed – whetheronshore or offshore. Offshoringrefers to moving businessactivities out of the existinghost organisation to anotherlocation in a different country –in many cases to an outsourcedpartner (Outsourced Offshore),but in some cases to asubsidiary division of the samecompany (Offshore).Adopting the Tom Peters’mantra “Do what you dobest and outsource the rest”,organisations have taken theapproach of focusing on theircore competencies whilstseeking external partners toundertake activities that arenon-core and that can beundertaken by third partyservice providers. Outsourcingpartners typically havespecialist expertise and theeconomies of scale that enablethem to deliver the requiredresults better and cheaperthan could be achieved bythe client using their ownin-house resources.These trends have led toindustry sub-sectors of firmsproviding outsourcing services,including call centres, finance,payroll, telecommunications,computing and of coursetransportation and logistics.In addition to leveraging thescale economies that resultfrom servicing multiple clients,these focused service providersalso nurture and developspecialist subject matterexpertise, domain knowledge,streamlined processes andtechnology platforms that areabove and beyond levels thatany single organisation coulddevelop in-house.Therein lies the valueproposition for outsourcing –contracting out your businessprocesses to a specialist serviceprovider that can performthose services more efficientlyand more cost effectively thanyou could do yourself, enablingyour organisation to focus itsprecious resources on yourcore competencies. We canexpect further collaborativeoutsourcing developmentsthat will empower efficient andeffective performance in globalsupply chain ecosystems.Mark MillarWith his extensive logisticsexpertise, industry thought leader,consultant and advisor Mark Millar isa much sought-after speaker and hasbeen engaged by clients as Speaker,MC, Moderator or ConferenceChairman at more than 240 eventsin 20 countries and is recognized bythe Global Institute of Logistics as“One of the most Progressive Peoplein World Logistics”. Millar is also theInternational Adviser in Hong Kongfor the Asia-Pacific Region for theSupply Chain & Logistics Group(SCLG), UAE. He can be reached atmark@markmillar.comSCLG Consultative Committee Member - ProfileDavid Dronfield, General ManagerStorage & Handling Solutions, Al-Futtaim Auto & Machinery Co. LLC (FAMCO)David Dronfield, has a B.Sc (Hons) in Electronic & Electrical Engineering and acareer spanning 26 years in the Materials Handling industry. He has held positionsheld in the UK, Australia, Indonesia, Thailand and now in the UAE, encompassingProject Engineering, Project Management, Marketing, Sales Management, BusinessDevelopment and General Management.David’s work has covered all major industries, including 3PL, FMCG, Pharmaceutical& Automotive, and has managed the design and implementation of solutionsutilizing the complete range of Storage & Materials Handling Equipment. In eachterritory, he has worked with both multinational and local clients, providing simpleproduct storage to semi and fully-automated distribution solutions.Currently holding the post of General Manager for the Storage & Handling SolutionsDivision of FAMCO, he 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 thenewly formed ‘Al Futtaim Interiors’’ Company providing full design and fit out ofoffice interiors.October 201215

Saudi ArabiaIATA ReportAviation sector is a critical componentof the Saudi Arabian economy“Aviation is a critical component of the Saudieconomy. The Kingdom’s 27 airports handleover 54 million passengers annually, and thenumbers are growing at double-digit pace. Theaviation investments made in the Gulf regionin recent years shows the vital role aviation canplay in building and diversifying economies.The new King Abdulaziz International Airportproject in Western port city of Jeddah onthe Red Sea coast is a good example of suchimportant investment.” said Tyler.The International Air TransportAssociation (IATA), the aviationbody representing some 240airlines comprising 84 % of the global airtraffic, recently presented the governmentof the Kingdom of Saudi Arabia with astudy quantifying the economic benefits ofaviation to the Saudi Arabian economy.The study was commissioned by IATAand completed by Oxford Economics.It was presented to His Highness PrinceFahad Bin Abdullah, who is President ofthe General Authority for Civil Aviation(GACA) and Chairman of the Board ofSaudi Arabian Airlines, by Tony Tyler, IATA’sDirector General and CEO on a recent visitto Saudi Arabia.“Aviation is a force for good in ourworld. The industry has turned our planetinto a global community by connectingpeople to business, bringing products tomarkets, facilitating journeys of discoveryand uniting families and friends. This hasa significant economic impact. Globally,aviation provides employment to some57 million people and supports USD $ 2.2trillion in business. In Saudi Arabia, aviationand aviation-enabled tourism supports3.2% of the Kingdom’s GDP and 3.0% of theworkforce,” said Tyler.The IATA study reveals that the Aviationsector supports 1.8% of Saudi Arabia’s GDPequal to SAR 30.2 billion annually. Aviationis a quality employer, providing work forsome 152,000 people in Saudi Arabia.The productivity of these jobs is 1.8 timeshigher than the average for Saudi Arabia.Aviation-enabled tourism in Saudi Arabiaemploys a further 139,000 people andsupports some SAR 23.6 billion of economicactivity annually. In total, aviation andaviation-enabled tourism accounts for3.2% of Saudi Arabia’s GDP and 3.0% ofemployment.During his visit, Tyler also met with SaudiArabian Airlines Director General, Eng.Khalid Abdullah Almolhem, executives ofSaudi Arabian Airlines, and governmentofficials. Topics of discussion includedfurther liberalization of airspace and thedevelopment of Saudi Arabian Airlinesand aviation in the Kingdom. IATA alsoconcluded agreements to accredit SaudiArabian Airlines’ training centers asauthorized training centers of the IATATraining and Development Institute. Thisis a significant step for the development ofaviation’s human capital in the region.Tyler also noted the intent by thegovernment of Saudi Arabia to enable ane-customs platform, and hoped this couldlead to a phased implementation andeventually facilitate full implementation ofe-Freight in Saudi Arabia.“Aviation is a critical component of theSaudi economy. The Kingdom’s 27 airportshandle over 54 million passengers annually,and the numbers are growing at doubledigitpace. The aviation investments madein the Gulf region in recent years showsthe vital role aviation can play in buildingand diversifying economies. The new KingAbdulaziz International Airport project inWestern port city of Jeddah on the Red Seacoast is a good example of such importantinvestment. It is essential that the Saudigovernment continue with those policiesto support the efficient development ofconnectivity by avoiding unreasonabletaxes and onerous regulation, and buildingsufficient infrastructure,” said Tyler.November 201219

ICC-UAE Networking EventLogistics stalwarts attend ICC-UAEnetworking eventThe International Chamber ofCommerce–UAE, in associationwith the Federation of UAE Chambersof Commerce and Industry recentlyorganized a well-attended ‘NetworkingEvening’ at the Crowne Plaza Hotel,Dubai, UAE. The ‘Networking Event’,specifically for supply chain and logisticsprofessionals, was sponsored by Aramex-Dubai.The Chairman of ICC-UAE, Dr. AhmedSaif Belhasa, welcomed the participantsto the event in absentia through hiswelcome address which was read out byDavid Harris, Chairman of the Transport& Logistics Commission ICC–UAE. Dr.Satish Mapara, Secretary General of theTransport & Logistics Commission, ICC-UAE in opening remarks noted that thisevent, the first of its kind for the logisticsand transport sectors to be hosted by ICC-UAE, would hopefully serve as a forerunnerfor many more to come in the future.Hussein Wehbe, General Manager,ARAMEX, Dubai & the Northern Emirates,gave a comprehensive presentation onthe supply chain-multimodal transport &logistics with specific references to localand global issues. He also enlightenedthe audience on the supply chainmanagement and techniques with somespecific case studies and examples of bestpractices of ARAMEX which can be lookedinto closely and emulated to experiencethe vibrancy of this freight forwardingtransport & logistics industry.The networking also witnessed spiritedpanel discussions within ICC-UAE & theheavyweights of the industry. The wideOmar Omar, Senior Partner, Al Tamimi & CoDavid Harris, Chairman of the Transport &Logistics Commission ICC–UAEHemant Barke, CEO, Prudence Insurance Brokers20 November 2012

ICC-UAE Networking Eventrange of interesting topics and issues ofthe panel discussions included financeand banking needs and bottlenecksexperienced by both the lender andborrower for the Transport and Logisticsindustry; Risks Management-relating tothe commercial and insurance liabilitieswhether covered under agreements orcontracts between contractual parties inTransport and Logistics industry; scopeand pattern of the industry Road-Rail-Airand Sea and how it may take shape forproper single multimodal transportationunder single Multimodal TransportDocument (MTD), apart from givinginsight fundamental distinctive features ofsettlement of contract disputes throughcivil courts vis-a-vis arbitration process.The panellists were Hemant Barke, CEO,Prudence Insurance Brokers, Dubai; JohnLesniewski, Director of Sales & CommercialKhaild Al Falasi and Dr. Anup Ayappan from JBC Express inconversation with Dr. Satish Mapara (centre)Agreements, Etihad Rail in Abu Dhabi; DavidHarris and Omar Omar, Senior Partner, AlTamimi & Co., a UAE law firm all well-knownand well-regarded in their respective fieldsof expertise. The moderator was Dr. SatishMapara.Saeed Obaid Al Jarwan, Member of theBoard of Directors & Secretary General saidthat the event provided an opportunityfor participants to exchange views andopinions with leading business expertsfrom this Gulf Region.The Int’l Chamber of CommerceUnited Arab Emirates (ICC-UAE) chapterrepresents the commercial, industrialand business enterprises in the countryat a global level. It complements andstrengthens the activities of the UAEbusiness community. Founded in 2004,the chapter endeavours to modernisethe UAE industry, business and trade toworld-class standards. While encouragingmore domestic and foreign investment inthe UAE, the ICC UAE chapter deals withthe national and the international legal,financial and administrative matters ofits Members. The chapter, along withthe Paris-based International Secretariatof ICC, promotes the scope and reach ofthe UAE business community aroundthe world.November 201221

Under the Patronage ofHH Sheikh Mohammed Bin Maktoum Bin Juma Al Maktoum10-12 December 2012 I Atlantis The Palm I Dubai I UAEMELOG will draw together key government and oil and gas industry figures from across the GCC and the Middle East.It will provide a platform to understand the key industry drivers, reveal essential cost-efficiency strategies andformulate best practice to guarantee a successful future for your oil and gas upstream logistics.LogisticsProfessionalsFreezonesGovernmentsLogisticsSuppliersDistinguished Speakers IncludeMr Mohammed Al MuallemSenior Vice President & ManagingDirectorDP World UAE RegionBarry VitouPartnerPinsent MasonsRiyan QirbiSupply Chain and Logistics Manager-Middle EastBPBob WrigglesworthLogistics Consultant, Majnoon FieldDevelopmentShellVladimir KostenkoLogistics ManagerLUKOILRakesh N EdavalathSupply Chain & Contracts ManagerCrescent Petroleum UAEWarith KharusiChairmanThe Oman Logistics & Supply ChainAssociationLarry ParkosSupply Chain ManagerOccidental Petroleum CorporationFor Sponsorship Opportunities please contactElliott McGinn on +44 20 7978 0029 or emcginn@thecwcgroup.comOfficial Partner Sponsored by Supported bywww.cwc-logistics.com/ME

Case StudyGuest Columngo wrong just because of human error.Discounts agreed for items in the contractare simply forgotten, which is a directloss of money. Internal budget codesare wrong, which leads to cost allocationerrors or time-intensive correction loopsafterwards. The contractor delivers therequested services, but often partially,and thus partial invoices are sent to thecompany. The finance department cannotmatch the invoice with the originalservice order and stops payment, to thecontractor’s dismay, and begins a timeconsuminginternal querying process.Invoice cycles are 200% over-targetcausing some contractors to walk away.In our case, we identified more than 150possibilities for errors in the purchase-topayprocess – a process designed to fail.Even though we highlighted only afew issues and risks, the problems shouldhave been made clear. Now, how woulda solution scenario look like? We oftenadvise our clients not to try to jumpto best practices because reachingbest practices often works bettergradually than in a rapid manner. Peoplequalification is a longer term challenge,of course and realistically solvable.What do best practices mean for thepurchase-to-pay process and suppliercollaboration? For one thing, the entireservice (or product) items need tobe catalogued electronically. In brief,items must be assigned a unique, cleardescription. Units (hours, volumes andother quantifiable parameters) must bedefined. Price per item must be defined,including agreed discounts. All of that willfinally end up in an electronic catalogueand this work must be done with utmostprecision as it will later directly impactcosts and process efficiency.The entire current purchase-to-payprocess must be mapped, analyzed andthen the new process defined accordingto best practices. Cross industrybenchmarks need to be identifiedand be applied. Requirements acrossdepartments and business units of thecompany will be different; including thecase people saying “I am different”. Foran effective change management youwill need a thoughtful approach in orderto balance individual requirements withmeaningful levels of standardization.Experience and understanding of theculture count here.Then, you will have the entire processimplemented electronically in theappropriate system, customized to yourneeds, with smart business logic definedinto the process such as automatedchecks for right budget codes, discountsor maximum contract value allowed.Furthermore, contractors and supplierswill be integrated in the process, whichwill ensure seamless collaboration.Here’s how the new purchase-topayand supplier collaboration processcan or will look like in more detail. Yourpurchasing professional will selectservices from an electronic cataloguejust like they would create a shoppingcart in “amazon.com”, which is a highlyuser-friendly, error proof and quickprocess. The internal requisition willbe transferred into service ordersafter an internal electronic approvalworkflow is completed. The serviceorders will be submitted electronicallyto the contractor. Your contractor willelectronically acknowledge the serviceorder and send back a service orderresponse. The services will be performedby the contractor and the contractorwill create a so called electronic serviceentry sheet, documenting the servicesperformed. You will approve it internallyand your contractor will immediately beable to send you an electronic invoice.The invoice will be automatically matchedagainst your purchase / service orderand service entry sheet (“3-way match”).There is no need for cumbersome manualinvoice verification. Finally, the finance24 November 2012

‘Leaders in Logistics’ 2012‘Leaders inLogistics’ 2012draws topindustry bigwigsAveritable who’s who of the supply chain and logisticsindustry in the UAE descended at the Grosvenor HouseHotel, Dubai for the annual ‘Leaders in Logistics 2012’hosted by ITP Publishing in October 2012. Over 200 top-levelparticipants converged at the conference venue to listen toindustry leaders and discuss operational issues and concernsconfronting the trade.The proceedings kicked off with a welcome address byConference Chair Michael Stockdale, Managing Director, B2CLogistics who exhorted the industry to become agile and spiritedin the face of intense competition and challenges as a fall out of theeconomic recession still gripping many parts of the world.The lead proceedings included keynote speeches by MahmoodBastaki (CEO, Dubai Trade), Charles Acworth (Senior Manager,Real Estate, Industrial Zones, KIZAD); Mark Appleyard (BusinessDevelopment Director, Tristar) and Professor Alan Waller(International President, CILT), who especially flew in for thisoccasion. Interactive panel discussions were held throughout theday on topics such as ‘Achieving excellence in logistics operations’,‘What do FMCG clients want’, ‘An outlook on 2013 trends’ and abusiness case for ‘Investing in the education of staff’.Mustapha Kawam, Managing Director of Globe Express Services(Overseas Group), took part in the panel discussions on ‘AchievingExcellence in Logistics Operations’. He said: “Globe Express Servicesis strongly committed to support the continued growth anddevelopment of the region’s logistics industry. In this regard, we havemade substantial investments in state-of-the-art infrastructure, bestpractices and the most competent logistics professionals to maintainthe highest level of excellence in our core services. He was joined inthe discussions by John Gould, Managing Director, CEVA Logistics;Madhav Kurup, CEO, Hellman MENA and Binoy George, GeneralManager, Contract Logistics, Al Futtaim Logistics.On the dais for the plenary panel deliberations on ‘What doFMCG clients want’ moderated by Michael Stockdale were MajedZambaraji, CEO, RAK Logistics; Ahmed Shamieh, Head of CustomerLogistics, Nokia and Mathew Theocharous, Logistics Manager, GCC,Mars.The quartet involved in the post-lunch panel discussions on‘The Business Case for investing in the Education of Staff and inHR’ included Keith Newton, Secretary General, Chartered Instituteof Logistics & Transport International (CILT); Katharina Albert,Managing Director, SimPlan Dubai; Nadia Abdul Aziz, SecretaryGeneral, National Association of Freight & Logistics (NAFL) andManaging Director, UNASCO (Union National Air, Land, and SeaShipping Company) and Sean Bradley, Managing Partner, RevereConsulting. The moderator was Alex Borg, Executive Director, CILT.26 November 2012

Feature: Airborne ExpressThe Airborne Identity: Smooth lift-offAirborne Express on the fast-track to speedy growthAirborne Express LLC, a division of EliteGroup of companies, is the brainchildof entrepreneur Pravir Malhotra whofounded the company in 2000 followinga distinguished career with DHL. AirborneExpress was initially established to servingthe logistical needs of the banking andinsurance industry in the urban and vastinterior of the Sultanate of Oman, the secondlargest country, in area, in the six-memberGCC bloc. The company has blossomed andseen rapid growth since its inception. It nowhas strong fortifications across the GCC,India & China. According to Malhotra, thesuccess of the company can be attributed ‘toits committed and dedicated staff ready towalk, travel and go the extra mile to provideon-time high quality standard of serviceseven under most difficult times and againstall the odds’.Airborne Express realized growth comesat a price and hence became an assetbased company with huge investmentin infrastructure, fleet of various capacity,custom made vehicles, heavy equipments,storage facility, with clearing facility andrelevant licenses at airport, borders, ports,courier terminals, upgrading to state of theart IT system and so on. Today, Airborneprovides “Total Transportation & LogisticsSolutions” be it an express courier services,bonded trucking, air-freight, sea-freight, DG(dangerous goods) movement, full or partcontainer load, chartering of aircraft, and acomplete regimen of logistical and freightservices.Airborne Express is a limited liabilityhaving its Head Office based in Dubai,UAE, with own network within the MiddleEast and over 1500 associate offices acrossthe world that enables it to provide highstandards of services at a competitiveprice. Airborne Express is a professionallymanaged organization with clearly definedareas of functionality and responsibility.Those occupying managerial positions comewith good credentials and have years of fieldexperience and are knowledgeable on theintricacies of the volatile and fast-changingcourier industry and sensitivity attached toRajiv ‘Roney’ Malhotra, Regional Director,Elite Group of companiestimely deliveries.The Link conducted an exclusive interviewwith Rajiv ‘Roney’ Malhotra, RegionalDirector, Elite Group of companies for histake on the objectives of the companyand making the case for the corporatebyline—‘Your Express and Logistics Partner’.The following are excerpts from thatengagement.The Link: Airborne Express originated in2000 to serve the courier / delivery needs ofbanks and insurance companies in remotecommunities in the interior of the Sultanate ofOman. How has Airborne Express evolved overthe past 12 years since inception?Roney Malhotra: Yes indeed we startedAirborne Express in the Sultanate of Omanin 2000 to serve the needs of the banking,insurance and automobile industries in the“We continue to performwell and our numbers areup. Business has been onthe upswing 25 % in every2012 quarter over thecorresponding figures for2011. We are confident toclose strong in 2012. “remote and far-flung areas of sprawlingOman but have spread our wings across theGCC since. Currently, we also have officesand operations in the UAE, Qatar, Kuwait andBahrain. We have also recently signed upwith a very large logistics services provider inIndia and have an office in China.In Oman as with the rest of countrieswe operate in, our market share has beensteadily growing from strength to strength.Both our outbound and inbound shipmentshave consistently registered increases nowbecause of our extensive worldwide offices.Specifically with regard to Oman we haveopened 7 new offices across the Sultanateto facilitate not only door-to-door documentcourier services but also freight and bulkdeliveries. In the UAE we are represented inall of the 7 Emirates. This has been buttressedalso by use of sophisticated IT systems thathave simplified documentation processingand resulted in quicker turnaround time anddeliveries.Airborne Express is also part of thelarger conglomerate—the Elite Groupof companies and our other diversifiedbusinesses including Sea, Land, Air Cargo& Air charter; procurement supplies andlogistics; oil and gas waste management;enterprise content management andbuilding material all acquiesce and dovetailwell in our carefully crafted business models.The Link: What is the range of servicesoffered by Airborne Express?Roney Malhotra: In every market thatwe function in, our strategy has been toconsolidate our domestic operations. Ourmainstay is local deliveries for our corporateclients. In Oman for example, we have dailyruns to towns located in the interior. We havespecialized products and services for thedomestic market to suit requirements andoffer them a one-stop shop. These includedocumentation and parcel collection anddelivery; cheque collection; return servicewhere we have the service to delivera shipment and return the necessarydocuments.We also have bulk deliveries wherewe can deliver invoices, magazines, gifts,30 November 2012

Feature: Airborne Expresscomplimentaries, samples and shipmentsen-masse to customers. We also securelydeliver bank documents—statements, creditand debit cards, pin mailers, cheque books;cash-on delivery as well as deliveries andpickups based on online orders.We also provide comprehensive truckingservices within the Middle East and MENAregion to the entire GCC as well as to Yemen,Egypt, Jordan, Iraq and Turkey. We offerLess than Truckload (LTL) and Full Truckload(FTL) options on these sectors in vehiclefleets ranging from 3 tons to 40 feet trailers.Additionally, we offer flexible solutions for ourclient’s business needs including palletizing,where our experienced personnel providepalletizing services for cargo of all sizes andshapes of shipments to ensure safe deliveryof packages. We also provide wooden boxpacking for all fragile shipments to avoid anydamage during transit and promo packinginvolving customized promotional packingfor FMCG customers. We also do projectcargo and our extensive services are availedoff by international and regional courierservices.The Link: Could you please expand on yourIndia operations?Roney Malhotra: We have recently signedup Trade Star Logistics, a major provider oflogistics services in India with over 300 officesand 64 warehouses across the country. Forsome time we were looking for a compatiblepartner in India and in Trade Star Logistics webelieve we have found the perfect fit.This will no doubt prove to be a mutuallybeneficial relationship as we can harness thestrengths of Trade Star Logistics for deliveriesacross India whilst they can leverage ourstrengths for the countries and regions weoperate in. Again, specifically for India wealso offer door-to-door cargo deliveries inaddition to documents, given the presenceof large Indian expatriate communitiesparticularly in the GCC countries.The Link: Please elaborate on yourpartnerships / association with other couriercompanies?Roney Malhotra: Our business modelsallows large corporations, multinationals,big businesses and other companies offeringcourier, freight and logistics services to useour strengths and assets particularly in thelocal and regional arenas.We work closely with our partners andassociates to provide optimum services toour clients and this is clearly reflected inthe loyalty they have to us and we for them.Our client base has also been consistentlygrowing and to match the increasedvolumes of business our employee numbersand assets are also correspondingly up. Wecontinue to invest in our infrastructure andthis is testified in the fact that we currentlyhave 85 forty-foot container trucks.The Link: How has Airborne Express faredduring Q1-Q3 2012 vis-à-vis correspondingperiod in 2011?Roney Malhotra: We continue to performwell and our numbers are up. Business hasbeen on the upswing 25 % in every 2012quarter over the corresponding figures for2011. We are confident to close strong in2012.The Link: What are your expansion plans forAirborne Express in the region for both the shortand long-term futures?Roney Malhotra: We are always lookingat expanding our businesses across theboard. We are continually looking to set upbusiness in new countries whilst generatingadditional revenues and volumes fromthe existing business. We continue to addnew customers and our workforce has alsoincreased in numbers. We have appointeda new Managing Director in the person ofGirish Kumar Nair, a 20-year industry veteranwho will spearhead our operations. Hecomes with a wealth of experience that weare confident will propel the company tonew heights.The Link: What are the challenges facingthe courier / express delivery industry in thelight of the looming economic downturn? Howhas it impacted the industry?Roney Malhotra: Competition is achallenge but we are not overwhelmed by it.In fact, competition is good and welcome asevery functionary is then required to give offtheir best to stay in the running. Therefore, asa result it is also good for the clients who areassured of good-value for their money.The fact that there is business for everyoperator is a reflection of the health ofthe market. Airborne Express continues toperform well and the economic downturnhas not seriously dented our business. Ourbusiness continues to grow.The Link: What is your vision for AirborneExpress for the future?Roney Malhotra: We will continue toexpand, consolidate our operations andmaintain high professional, uncompromisingstandards of services. The business weoperate in is international and transcendsall boundaries and the long-term visionis for Airborne Express to become a trulyworldwide company as would only beexpected of a company that endeavours toprovide high quality of logistical services.November 201231

Exclusive InterviewClarion Shipping ServicesThe Clarion Call—Clarion Shipping all set toexpand operationsAniyan Kutty charts out the future for his companyHowever foggy the currenteconomic situation mightappear, there is clarity in ClarionShipping Services’ broad corporate visionas enunciated by the firm’s supremo. The16-year old company, now an establishedone-stop integrated logistics solutionsprovider, aspires to become a global leaderin shipping, forwarding and logistics and toprovide a comprehensive range of servicesits growing customer base across the worldthrough quality logistics solutions.Currently, Dubai-headquartered ClarionShipping Services which commencedoperations in the UAE in 1996 is well andtruly a global corporate institution, withover 50 offices spanning over 20 countriesacross the Middle East and the Africancontinent; Hong Kong covering the Far Eastand North Asia; Singapore covering SouthEast Asia; Mumbai covering the Indiansubcontinent; Los Angeles covering NorthAmerica and in Melbourne, Australia. Itemploys over 800 multi-national, multilingualstaff and recorded a freight turnoverof USD $ 150 million in 2012.The company moves a wide range ofgoods ranging from food stuffs, edibles andcommodities to textiles, cement, bitumen,tyres, machinery and heavy equipment,fertilizers and consumer goods. Thevastness of its operations can be gaugedfrom the relative sizes of its multiple,expansive Dubai warehouses that includea colossal 50000 sq. m. facility in the JebelAli Free Trade Zone (JAFZA); a 600,000 sq.ft. open yard in the Dubai Industrial City(DIC); a 7500 sq. ft. warehouse in Al Quozwith multi-racking system; a 3000 sq. ft.warehouse in the Al Rashidiya exclusivelyfor African traders; a 8000 sq. m. CPL(Centre Point Logistics) yard and a 1200 sq.m. SAL (Sea-Air-Land) yard. The companyis also the recipient of several industryawards including multiple-recognition byMaersk and UASC Lines and Certificate ofAppreciation Awards in 2011 by DIHADAniyan Kutty, Managing DirectorClarion Shipping Services(Dubai International Humanitarian Aid &Development Conference) and DUPHAT(Dubai International Pharmaceuticals andTechnologies Conference). Additionally,the company also has diversified interestsin IT, Civil Construction, Steel Fabrication,Trading and Transportation. The Groupoperates in 35 plus countries with over3000 employees and has a turnover ofclose to USD $ 1 billion.Aniyan Kutty is the Managing Director ofClarion Shipping Services and the drivingforce behind the company’s spectaculargrowth. The Link met with him for anexclusive interview at his offices in BurDubai where he spoke expansively abouthis early days with the company, the currentsituation and his vision for the future.The Link: Briefly trace the 16-yearcorporate journey of Clarion ShippingServices from its beginnings in 1996 to thepresent time as a top logistics provider?Aniyan Kutty: I started Clarion ShippingServices initially with a 1000 sq. ft. office. Ibelieve it was only a natural progression forme given my life-long career in shippingwith APL in Saudi Arabia and earlier in Indiabefore I relocated to the UAE. Driven bythis entrepreneurial spirit, we got down towork immediately developing our team &personnel, building up our customer base,our geographical logistics networks andinvesting heavily in infrastructure as theindustry is both very labour and capital32 October 2012

Clarion Shipping ServicesExclusive Interviewintensive.The hard work has eventually paid offand we now reap the dividends as a falloutof competent, professional employees;a growing & loyal customer list andburgeoning networks now spanning allcontinents. Yes, we have had our shareof ups and downs over the years but wehave established and re-established ourresilience and emerged strong. We continueto learn from our experiences. However, inour industry as with any other industry, thisis work in progress and efforts continue toseek good industry talent, new customeraccounts and new overseas partners. Wecannot afford to rest on our laurels.The Link: Describe the range of servicesoffered by Clarion Shipping Services?Aniyan Kutty: We offer a full &comprehensive suite of services rangingfrom global ocean transportation to NVOCC(Non Vessel Operating Common Carrier)operations; air-sea and land trucking freightservices; LCL & FCL services; warehousing,distribution and logistics solutions, turnkeyproject management and handling; oiland gas, on-shore and off-shore logisticsservices. In short, we offer a broad portfolioof value-added services including subassembly,procurement, consolidation, repackingand labelling all under one roof.We also represent regional andinternational liner and shippingcompanies. In the UAE we represent Econ,Crown Diamond and Opal Asia Lines; InMuscat Oman we represent LMT, Carveland Neptune Linesa and in Bahrainwe represent Sai Lines. Our impressiveportfolio of clients includes Abraj EnergyServices; Ramsis Engineering; PetrofacEngineering and Construction and TASMiddle east to name only a handful.We have the largest and the highestwarehouse in the Middle East located inJAFZA encompassing an area of 375,000sq. ft. with 75,000 pallet locations thatcan be stacked up 18 metres high, thehighest in the region. Put end-to-endit is approximately 1 kilometre long. Itis located on a land area admeasuring538,000 sq. ft. Additionally we have acorporate office area of 40,000 sq. ft.with dry and temperature controlledwarehousing facilities with 22000 palletpositions including 10,000 pallet positionsfor temperature control. We are clearly inthe big league and among the top 10 inthe UAE among the logistics and freightforwarding companies.The Link: How has Clarion ShippingServices fared during the Q1-Q3 2012 periodvis-a-vis the corresponding period in 2011and how do you hope to close 2012?Aniyan Kutty: Our growth storycontinues despite the economic woes andwe continue to do well. On an averagewe are 20-30% up in volume and revenueterms for the period Q1-Q3 in 2012 over thesame corresponding period in 2011.The Link: How are global recession andcompetition impacting your performance inthe region?Aniyan Kutty: Competition is clearlyintense and all-pervading but we continueto perform well in an industry that hasattracted a lot of players. We have strengthsand capitalize on them. Yes, there arechallenges but we work hard and worksmart to seize opportunities as they comeOctober 201233

Clarion Shipping ServicesExclusive InterviewWe have the largest and the highest warehouse in theMiddle East located in JAFZA encompassing an area of375,000 sq. ft. with 75,000 pallet locations that can be stackedup 18 metres high, the highest in the region. Put end-to-end itis approximately 1 kilometre long. It is located on a land areaadmeasuring 538,000 sq. ft. Additionally we have a corporateoffice area of 40,000 sq. ft. with dry and temperaturecontrolled warehousing facilities with 22000 pallet positionsincluding 10,000 pallet positions for temperature control. Weare clearly in the big league and among the top 10 in the UAEamong the logistics and freight forwarding companies.along. We are upbeat about the future.The Link: What is your take on the ‘piracy’situation plaguing the Indian Ocean off theSomali coast? How serious is the problem?Aniyan Kutty: This continues to be amenace and whilst as a corporate we arenot directly affected by this problem, thereis a price to be paid in terms of increasedinsurance premiums, longer deliveryperiods arising from the re-routing anddiversion of sea trade lanes and higher risksfor us in the business and our customers.We all suffer collectively. Piracy in the regionneeds to be contained and minimized evenif it cannot be effectively and completelyeliminated.The Link: How will new mega ports suchas the new Khalifa Port in Abu Dhabi andsubstantial investment in other GCC portsmake sea freight business more buoyant inthe region?Aniyan Kutty: This is certainly goodnews for the industry in the region. Wewill definitely see the fruits of the massiveinvestments being made. It will certainlyhelp to boost business in the region whichstands at the cross roads of the major seaand air-trade routes of the world. It will alsohelp to considerably east port congestionin this area.The Link: What are your long and shortterm growth plans and are you planningmore investments in the region?Aniyan Kutty: The goal is to continuewith our corporate mission and expandour services to become a truly internationallogistics player. Yes, we will continueto invest extensively in our personnel,infrastructure and acquisitions regionallyand overseas as this industry is indeedboth dynamic and volatile. We need to stayahead of the competition and retail ourclientele. Another objective is to become apublicly traded company. We have alreadytaken the initial steps in this direction andendeavour to list shortly on the SingaporeStock Exchange.We have also recently appointed a newGeneral Manager, an experienced logisticsveteran, who will develop oversee Cube Air,an air-freight charter airline company thatis expected to go operational in DWC in thenear foreseeable future.November 201235

Feature: Avalon Transportin this segment for the region. Thecompany now has a separate section forthe transport of refrigerated cargo whichit established in the post-Gulftainer eraand presently with 75 reefers is the largestprovider of trucks for this sector. AvalonTransport is also a major provider anddeploys trucks 24 X 7 X 365 for movementof cargoes and trans-shipments within theUAE airports in Dubai, DWC, Sharjah, AbuDhabi, Al Ain, Fujairah and Ras Al Khaimah.The company employs 180 staff, mainlyfrom India, Pakistan, Bangladesh and thePhilippines.Almost 90-95 % of the company’s trucksorties is scheduled business. “In theaftermath of the financial downturn, ourad hoc component has almost vanishedand now our business is almost entirelyplanned and scheduled although we stilldo the occasional provisional business asand when demanded by our clients,” headmits.Is Punjabi intimidated by the intensecompetition in this field and the fallout ofthe financial meltdown? “Avalon Transporthas been able to hold its own thanks to ourcommitted and dedicated team coupledwith our expansive fleet and availableresources. The competition and economicwill only result in weeding out themarginal and peripheral players and bringabout the much-needed stability andleveling-off in the market place,” retortedan unfazed Punjabi. 2012 continues tobe an exceptional year and by the timethe year closes the transporter will haveadded 30 trucks to its fleet strength thisyear alone. All of the company’s trucks arefitted with GPS systems and temperaturecontrolsensors that can be monitoredby the head office and even clients usingmodern-day software.The serpentine queues and longtailbacks of trucks at border postsparticularly at the Al Ghuwaifat boundarypost on the UAE-Saudi Arabia border iscertainly a matter of grave concern. Theoutstanding issues need to be resolvedaccording to Punjabi, it is everybody’sinterests. “It is very important to keeptraffic flowing and streamlined and avoidbottle-necks which only cause delaysand upsets delivery schedules and freeflow of business,” opines Punjabi. Theintroduction of rail lines (Etihad Rail)and growing infrastructure in sea portsand airports across the GCC will onlyfacilitate increased business and be in thebest national and regional interests andwelcomed by the business and transportcommunities in the region according toPunjabi.Punjabi also gives high marks to hisemployees who he credits for the successand growth of the company whichfunctions under three broad divisions—operations, finance and maintenance.“My staff have been loyal to thecompany. I provide them autonomy andencouragement and they are rewarded forperformance,” he noted.Punjabi has ambitious plans for thefuture and plans to boost his fleet levelsto between 200 and 250 trucks within thenext 3 years. “With an encouraging andsupportive board, a great team and a clearvision for the future, we hope to expandour operations across the GCC particularlySaudi Arabia and make Avalon Transporta major player in the transport industry inthe region,” he avers. With Punjabi in thedriving seat, it is only expected that therewill be more Avalon trucks in the region’shighways in the future.“I was approached byPet“Avalon Transportmerged with Gulftainerin April 2010. I believeit was a good fit andin many respects wecomplement each other.There clearly was synergyin the partnership as weleveraged strengths andassets for mutual benefit.Momentum Logisticsacquired 51 % of thecompany and I retainedthe remainder 49% andI, report to a very cooperativeand supportiveBoard of Directors,” headds assuredly.November 201237

Khalifa PortADPC hosts Government officials at Khalifa PortAbu Dhabi Ports Company (ADPC) recently hosted severalgovernment entities as part of its efforts to updategovernment stakeholders and partners on the developmentsregistered at the Khalifa Port since the commencement of commercialoperations on 1 September 2012.Aimed at strengthening relationships with other governmententities and increasing their awareness about the Port operations,besides engaging existing partners in the growth process, the ADPCinitiative has been widely welcomed by key players in the private andpublic sector.Recently the Khalifa Port hosted high-profile delegations fromthe UAE University, Department of Finance, Abu Dhabi Customs,Embassy of Australia, Etihad Rail, Urban Planning Council, Ministryof Environment and Water, Environment Agency of Abu Dhabi, AbuDhabi Food Control Authority, Department of Economic DevelopmentUnion Supreme Court, Abu Dhabi Police, Critical National InfrastructureAuthority, Ministry of Interior, and the Department of Transport.Jameela Al Junaibi, Marketing Manager, Ports, said: “The visits cameas part of our outreach activities towards our stakeholders and partnerswho have always extended their support to us. It also marked the firststep towards engaging other government entities with whom we areyet to share any direct business association. The positive turnout hasreaffirmed our conviction that both government and private sectorswill need to work in conjunction in order to achieve the Abu DhabiEconomic Vision 2030.”During their visit, the guests were offered a brief on ADPC andKhalifa Port project. The delegations also toured the DocumentationCenter that assists operators moving cargo into or out of the port, andthe Terminal Operator Building (Control Room) to gain insights into thefunctioning of the region’s only semi-automated container terminal.Khalifa Port’s advanced technology and innovation make it one of themost efficient ports in the region. Serving as Abu Dhabi’s gateway fortrade and international business, the terminal is capable of handlinghigh-capacity container ships and operates some of the world’s largestship to shore cranes.38 November 2012

Khalifa PortKhalifa Port Interchangenow operationalAbu Dhabi Ports Company (ADPC)recently opened the Khalifa PortInterchange (KPI), which linksthe E11 Abu Dhabi-Dubai highway withKhalifa Port and its satellite KIZAD (KhalifaIndustrial Zone Abu Dhabi). This marksanother major milestone for the KhalifaPort and KIZAD megaproject that is nearingcompletion. The re-named interchangewas officially opened by the Department ofTransport (DoT).When fully operational, the 12.5kilometer-long, six lanes, dual carriagewaySheikh Khalifa Industrial Road (SKIR) willbe used for truck traffic. The opening of theinterchange will deliver a key selling point tothe megaproject featuring Khalifa Port andKIZAD, allowing goods to be transportedquickly and directly.With the commencement of commercialoperations at the Khalifa Port’s state-of-theartcontainer terminal in September 2012,the facility is expected to handle aroundone million containers in 2013, whencontainer traffic is wholly transferred fromMina Zayed in early Q1, 2013. The figure isplanned to rise to 2.5 million TEU containersand 12 million tons of cargo when the firstphase of the megaproject is completed. Themajority of trucks are expected to use thenew road, which offers direct access.Ashraf Al Khaznadar, Executive Vice-President, Projects, ADPC, said: “It is veryrewarding for all involved to see thisachievement become operational. I wouldlike to thank all the units involved at ADPC,particularly the Projects Unit and of courseour government partners and stakeholdersfor their continued support. Now we canlook forward to the start of what promises tobe a bright future for Abu Dhabi’s industrialsector.”The Sheikh Khalifa Industrial Road linksthe port directly with the 420 squarekilometer KIZAD, which is expected to growinto one of the world’s largest industrialzones over the next 20 years. Additionally,60 kilometers of arterial roads such asMina Road, Ras Ghanada Road and AlSadr Road will be connected to the SheikhKhalifa Industrial Road through three maininterchanges. The Mina Road is alreadyopen to the public for accessing the port.Executive Vice-President, Ports’ Unit,ADPC, Captain Mohammed Al Shamisi,said: “I am delighted that this interchange isopening, and ADPC is honoured that it hasbeen re-named the Khalifa Port Interchange.I sincerely thank the wise leadership ofAbu Dhabi for their commitment to ourextraordinary megaproject.” Executive Vice-President, Industrial Zones Unit, KhaledSalmeen also welcomed the opening of thenew road complex and opined that withthe route now going functional, both ADPCand KIZAD would benefit immensely withhigher volumes of trade and commerce asa result of increased business units set up inKIZAD.Abu Dhabi Ports Company (ADPC) is themaster developer and regulator of ports andindustrial zones in the Emirate. ADPC’s coreobjective is to facilitate the diversificationof Abu Dhabi’s economy by boostingnon-oil and gas trade. It achieves this bymanaging commercial ports throughoutthe Emirate, supporting partners with theirinfrastructure projects and setting up newcompanies and joint ventures with partnerswho service and operate in the ports andindustrial zones sector.ADPC was created in 2006 as part ofthe restructuring of the commercial portssector in the Emirate of Abu Dhabi andgiven control and regulatory enforcementpower over all commercial ports assetspreviously owned by the Abu DhabiSeaports Authority. ADPC strives to beat the forefront of progress in industriallogistics and infrastructure and is currentlyfocused on creating one of the world’slargest concentrations of industry at KIZAD.November 201239

NEWSEMIRATES SKYCARGOEmirates SkyCargo to expand its Frenchconnections with Lyon launchEmirates SkyCargo has strengthenedits operations in France with Lyon tobecome the third French gateway that itconnects to international trade opportunitiesacross its network of 126 destinations.The launch of flights to Lyon on 5 December2012, operated by A340-500 with a bellyholdcapacity of 15 tonnes, will take theannual cargo capacity into and out of thecountry to more than 52,000 tonnes spreadacross five flights to Lyon, seven to Nice(1992) and 19 to Paris (1994).The new gateway is Emirates 35th destinationin Europe and should help stimulateanother period of growth in France’s internationalcargo trade, which has grown significantlysince Emirates SkyCargo commencedoperations. In the last year it exported a totalof 21,000 tonnes, representing an increaseof 26% on the 15,600 tonnes carried duringthe same period in 2007/08.“After Paris, Lyon is a major economiccentre in France and the long-term outlookfor international trade is positive,” saidRam Menen, Emirates’ Divisional Senior VicePresident Cargo. “With the airport boastingeasy truck access and excellent links toEurope’s highway network, the potential tosupport businesses in surrounding areasis also very strong. “France, with a weeklycapacity of more than 1000 tonnes spreadacross the belly-hold of 31 return passengerflights serving Paris, Nice and Lyon, isa key trading point for Emirates SkyCargo.We expect there to be demand for a varietyof commodities going into and out of Lyonand have no doubt the destination will be astrong addition to our European network,”continued Menen.Goods coming into Lyon are expectedto include leather products, clothing, textiles,pharmaceuticals and electronics, whilewine, machine and electronics parts, andpharmaceuticals will be transported in theother direction.In the 2011-12 financial year, EmiratesSkyCargo carried 1.79 million tonnes ofcargo across its network, contributing 16.2per cent - US$ 2.6 billion - of the airline’stotal transport revenue. Based out of DubaiInternational Airport, its USD $ 327 million43,600 square metre Cargo Mega Terminalis designed to handle 1.2 million tonnes ofcargo a year. Emirates’ 186-strong fleet – includingeight freighters (currently comprisingfive Boeing 777-Fs, two B747-400ERFsand one B747-400F) – is one of the youngestin the skies.Since January 2012, Emirates has introducedservices to Rio de Janeiro, BuenosAires, Dublin, Dallas, Lusaka, Harare, Liege(Belgium, freighter only), Seattle, Ho ChiMinh City, Barcelona and Lisbon, WashingtonDC and Adelaide, while Phuket in SouthernThailand will come online on 10 December2012. Warsaw (6 February) and Algiers (1March) will be added in 2013. Emirates Sky-Cargo currently serves a global route networkthat spans 126 points in 74 countries,including 10 cargo-only destinations, whilemore than 50 of the locations Emirates Sky-Cargo serves are e-freight compliant.Emirates launchesflights to SouthAustraliaEmirates’ first commercial flight toSouth Australia departed from Dubaion the morning of 1 November 2012bound for Adelaide, significantly boostingthe city’s international flight capacity andconnecting the region to Emirates’ globalnetwork of more than 120 destinations.Emirates’ service between Adelaide andDubai marks South Australia’s first nonstopflight link with the Middle East, openingnew trade opportunities between thetwo regions. South Australian travellerswill also benefit from better connectionsand faster travel times to more global destinations,including Emirates’ 33 destinationsin Europe. Initially Emirates flight EK440will operate four times weekly, servicedby Emirates’ state-of-the-art Boeing 777-300ER aircraft, increasing to daily servicesfrom 1 February 2013.The delegation on board the inauguralflight to Adelaide included Salem Obaidalla,Emirates’ Senior Vice President, CommercialOperations, Far East & Australasia;Hiran Perera, Senior Vice President, CargoPlanning and Freighters; HE Pablo Kang,Australian Ambassador to the UAE; EyadAbdulrehman, Executive Director, Governmentof Dubai’s Department of Tourism &Commerce Marketing, other governmentofficials, prominent members of the businesscommunity and representatives fromthe media.“We are investing in South Australia forthe long haul, dedicating a Boeing 777-300ER aircraft to the route fitted with ourhighest on-board product offering and employingmore than 150 South Australiansin airline and airport service,” said Obaidalla.“When the service becomes daily fromFebruary, it will mean nearly 5,000 additionalinternational seats per week on theroute, representing a 30 per cent increasefor the market, boosting jobs and investmentin South Australia’s AUS$ 5.3 billiontourism sector and adding 14 tonnes ofcommercial cargo space on each flight,”added Obaidalla.40 November 2012

NEWSDP WORLDDubai’s DP World wins $ 200m India port dealDubai-based DP World Limited hasrecently announced that it hasbeen chosen to build and operate a singleberth terminal in India. The world’s thirdlargest port operator said it has received aletter of award from Jawaharlal Nehru PortTrust (JNPT), Government of India, to buildthe facility alongside its existing terminaloperation at Nhava Sheva, Mumbai. Thenew facility is expected to be operationalin 2015, DP World said in a press statement.DP World added that it will be investingapproximately USD $ 200m to build acontainer terminal of 330 metres quaylength and 17 hectares of yard whichwill have an annual handling capacityof 800,000 TEUs (twenty foot equivalentcontainer units). The new quay hasbeen awarded for a 17-year concessionperiod and will be equipped with four railmounted quay cranes and 12 rubber-tyredgantry cranes.Mohammed Sharaf, Group CEO, DPWorld said: “We thank the Government ofIndia and the Jawaharlal Nehru Port Trustfor awarding us this project. India is oneof our most important markets and we arecommitted to supporting its growth overthe long term.”DP World currently operates five Indianterminals at Chennai (Tamil Nadu), Mundra(India’s largest privately owned portlocated in Gujarat State), Nhava Sheva(JNPT, Maharashtra), Visakhapatnam(Andhra Pradesh) and Cochin (Kerala) andthe company’s Asia Pacific and IndianSubcontinent region was the main driverof its volume growth in the first six monthsof 2012.Anil Singh, senior vice president andmanaging director, DP World Subcontinent,added: “We are extremely pleased toreceive the award for the 330 metre project.Timely capacity on the west coast of India iscritical to the country’s economic growth.JNPT is India’s largest trade gateway andadditional port capacity will ease thecongestion concerns of the shippingcommunity. We look forward to workingwith Jawaharlal Nehru port on the projectto continue to service India’s trade as thepremier gateway.”DP World has reported reported a slightdecline in its consolidated terminal volumesfor the third quarter of 2012. It said thatterminals in which it owns majority stakesrecorded a 0.7 percent year-on-year fall to6.94 million TEU in the third quarter. It saidthe Asia-Pacific and Indian subcontinentregion and the Europe, Middle East andAfrica region reported lower volumes.DP World, which operates more than60 terminals across six continents, hasin the last several months sold stakes inRussian container terminal VostochnayaStevedoring Co, British-based TilburyContainer Services and operations inBelgium. It has also quit its venture inYemen. DP World reported a marginalnet profit increase of 0.4 percent to USD$ 247m in the first half of 2012. In thefirst six months of the year, the portoperator saw its revenue increase to USD$1.53bn, compared to USD $ 1.5bn in theprevious year.DP WORLDDP World to develop & operate new Turkish container terminalDP World, one of the world’s leadingport operators, has recentlyannounced the acquisition of a green fieldcoastal site at Yarimca, Turkey, which thecompany will develop into a new containerterminal facility. The completed 48 hectaresite, on the Sea of Marmara, will enable DPWorld to build and operate a 1 million plusTEU terminal with a planned quay length inexcess of 1200 m.DP World has agreed to acquire theexisting site from Turkish steel producerErdemir for a net cash consideration ofUSD $ 105 million, and with it the rights todevelop a new container terminal. Subjectto all necessary final approvals, DP Worldexpects to start work on the developmentof the site in 2006 and the terminal is expectto commence operations in early 2008. Theterminal will be the first in Turkey to bewholly owned by an international operatorand DP World plans to invest USD $ 170million in terminal infrastructure on thisproject.The move into Turkey is in line with DPWorld’s strategy of investing in growthmarkets such as in Eastern Europe and China.The new terminal at Yarimca will facilitatethe growing local industrial activity which iscurrently under served by container terminalcapacity. Turkey is a country of considerableeconomic growth and its infrastructure suchas ports will play a crucial part in sustainingits development. Foreign trade with Turkeyis growing at an annual rate of 30% withaverage annual GDP growth of 7.1% since1999. In recent years, Turkey has undergonesignificant reforms of its tax and investmentlaws making the country more attractive forforeign investment including reduction incorporate tax, stabilisation of the currencyand legal framework in line with EUstandards.Commenting on this landmark deal withTurkey, DP World’s first investment in Turkey,Mohammad Sharaf, CEO, said: “The newterminal at Yarimca will give us an importantplatform to expand our operations in EasternEurope. The development is a strong fit withour strategy of investing in developingmarkets in Europe and Asia. We alreadyhave a successful operation at Constanta,on the Black Sea and we will continue toidentify opportunities in the region that willenable us to grow our network profitablyand serve the needs of our customers. DPWorld is committed to long term investmentin the local communities and countries inwhich we operate and this project will be noexception.”November 201241

newsSHIPPING EDUCATIONNSCSA presents new identity tologistics oil and gas industry partnersThe National Shipping Company of Saudi Arabia (NSCSA), one of theworld’s largest and most diverse shipping conglomerates, marked itscontinued evolution by introducing its new brand, Bahri, to its oil and gasindustry partners at a recent ceremony hosted by company CEO Saleh AlJasser and President of Bahri’s O&G Sector, Saleh Al-Shamekh.The event, held at the Westin Hotel Dubai Beach Resort & Marina, wasattended by VIPs, clients and customers from the UAE and across the globe.Speaking on the occasion, Saleh Al Jasser, Bahri CEO, said, “Our evolutionto becoming Bahri is a logical response to our growing economies and thechanging patterns of trade--- new realities mean new innovation to match.Our successes can, in large part, be attributed to an organizational focus onboth safety and quality, and our quest to serve as a global benchmark forshipping infrastructure, technology and service. Ultimately, just as we set outto do in 1979, Bahri will continue connecting economies, sharing prosperityand driving excellence in global logistics services,” he observed.Bahri is the first private sector company of Saudi Arabia in the shippingindustry and one of the pioneers in the Middle East and North Africa tosuccessfully implement Oracle GRC & Oracle Hyperion. In June of 2012, Bahrisigned an MOU with Saudi Aramco to pursue a merge of fleets and operationswith Aramco shipping subsidiary Vela International Marine Limited, makingBahri the exclusive provider of VLCC crude oil shipping services to the oil &gas giant.In his welcoming remarks, Saleh Al-Shamekh, President- Oil & Gas, said,“Our unrelenting commitment to excellence has resulted in us becoming oneof the world’s most respected shipping lines. It is now time for us to take thenext big step: the move from being a strong service provider to a powerful,international brand. The oil & gas transport segment is the largest operatingsegment of Bahri and has evolved extraordinarily since we established sectoroperations in 1996. We wanted to take this opportunity to launch our newbrand together with our oil & gas partners, who have been instrumental inour growth and development,” he noted.The National Shipping Company of Saudi Arabia was launched in 1979as Saudi Arabia’s national carrier and initially specialized as a general cargocarrier. More than 30 years later, Bahri has expanded and diversified tooffer services in oil & gas, chemicals, dry bulk and ship management. Thisremarkable growth and expansion has culminated in the launch of the newidentity and Bahri brand. Bahri’s new brand will be bolstered by a new andimproved online presence that will be rolled out in the coming months.Bahri’s crude oil transport segment operates a fleet of 17 Very Large CrudeCarriers (VLCCs) in the spot market and long-term contracts (time charter)basis, and has invested heavily energy saving technology and electroniccontrol systems for the main operational engines. In 2011 Bahri carrierstransported the equivalent of nearly 36 million barrels of crude oil, with45% of the routes originating in the Arabian Gulf reaching the Far East, 30%reaching the United States of America, and 25% originating from West Africareaching the Far East.Wisdom Business Schooloffers CILT professionalprogrammes in the UAEWisdom Business School, the latest division ofWisdom Education Group officially launchedthe prestigious programmes from CILT — CharteredInstitute of Logistics and Transport — International. Ata recent ceremony, Professor Alan G. Waller OBE — CILTInternational President presented the accreditation toWisdom Business School for offering CILT InternationalProgrammes in the UAE.Keith Newton, CILT International Director General andAlex Borg, Regional Director, CILT International, UAE andGCC countries and Ahmed Rafi B. Ferry CEO WisdomEducation Group attended the function.Professor Alan G. Waller is also Vice-president forSupply Chain Innovation at the International ConsultancySolving Efeso. He is also Visiting Professor in InternationalSupply Chain Management at Cranfield Centre forLogistics and Supply Chain Management, internationalpresident of the Chartered Institute of Logistics andTransport, chairman of the European Logistics UsersProviders and Enablers Group (ELUPEG), and presidentof leaders in Supply Chain UK and of leaders in SupplyChain Benelux.The Chartered Institute of Logistics and Transport is theleading professional body associated with logistics andtransport with over 35,000 members spread over morethan 100 countries. CILT established in the year 1919 andreceived its Royal Charter, UK in the year 1926. CILT holdsun paralleled professional International recognition.Chartered Membership (CMILT) and InternationalAdvanced Diploma in Logistics and Transport will be oneof the major programmes offered by CILT International atWisdom Business School FZE. The International AdvancedDiploma is designed for senior level managers and thecontent is at the strategic level. Successful completion ofthe Advanced Diploma will enable managers to work atthe most senior level within the logistics and transportprofession. The qualified professionals with five or moreyears experience are eligible to apply for CharteredMembership.Supply Chain Professional Programmes (RP), RetailProfessional Programmes (RP), Certified ProfessionalLogistician Programme (CPL), Certificate and DiplomaProgrammes in Logistics & Transport, Advance Diploma inLogistics & Transport (Equivalent to a Bachelor’s Degree),Humanitarian Logistics, Continuous ProfessionalDevelopment (CPD) programmes are the major otherCILT programmes offered at Wisdom Business School.November 201243

NEWSJAFZA DHL PARTNERSHIP EVENTJAFZA lauds DTCMpromotional effortsThe Jebel Ali Free Zone Authority(JAFZA) recently honouredthe Department of Tourism andCommerce Marketing in Dubai (DTCM)on the sidelines of its annual BusinessAssociates Forum 2012. The ceremony,held at the Emirates Towers, was inappreciation of DTCM’s tireless effort topromote JAFZA locally and abroad.DTCM was also honoured forattracting Dubai tourist and mediadelegations to JAFZA to brief themabout the services and facilitiesbeing provided to potential investorsand businessmen. Salma Ali Saif BinHareb, CEO of Economic Zones andJAFZA, handed over the appreciationcommemorative gift to MansoorBawazir, Head of Section at the OverseasPromotion and Inward Mission Divisionon behalf of DTCM.AGILITYAgility Q3-2012 netprofit up 21 %Agility, a leading global logisticsprovider, has reported a net profitof Kuwaiti Dinar KD 9.75 million (USD$34.4 million) in the third quarter 2012,up 21 per cent when compared to KD 8.05million in the same period last year. TheKuwait-based company said its revenueduring the third quarter surged 10 percent to hit KD 363.4 million over last year.Also the revenue in its core commerciallogistics business, Global IntegratedLogistics (GIL), increased by 4 per centrelative to the same quarter last year.Commenting on the results,Chairman and Managing Director TarekSultan observed, “The third quarterdemonstrated that our efforts totransform the company into a more leanand efficient organization are paying off.Even during these tough economic times,we managed to grow revenue and netprofit.”DHL hosts ‘Partners in Trade’ eventto discuss UAE-US trade routesDHL, the world’s leading logisticscompany and a pioneer in MiddleEast logistics now for over 30 years,recently hosted the latest event in its‘Partners in Trade’ series, looking at theimportance of the US trade lanes tocustomers in the UAE. The event providesa unique platform for DHL to bringtogether partners in the UAE that havean invested interest in trade with the USand is a demonstration of DHL’s ongoingcommitment to enhancing internationaltrade lane relationships and increasingglobal connectivity for the benefit for theUAE economy.The event, the fourth in the continuingseries, took place in Dubai and washosted by Frank-Uwe Ungerer, CountryManager for DHL Express in the UAE, andKarsten Aufgebauer, Senior Vice Presidentand General Manager for DHL ExpressNortheast US. Bilateral trade betweenthe US with the UAE is of particularsignificance to businesses on both sides ofthe trade lane. For example, the US in 2010ranked third for trading with the UAE, withoverall trade worth AED 40 billion.More than 40 high profile DHLcustomers with an interest in US tradelanes and facilities where in attendance tojoin in discussions around logistics needsand solutions for businesses shippingto and from the US. Joining the team ofdelegates, Mr. Robert Bannerman, thePrincipal Commercial Officer at the USConsulate General in Dubai, outlinedtrading trends in the US market, whileoverall conversation covered severalessential trading topics for customers,such as customs regulations and tradelane growth, and reinforced DHL Express’position as the International Specialists inexpress shipping.To further support US – UAE tradegrowth, DHL Express partnered withthe US Department of Commerce’sInternational Trade Administration(ITA) earlier this year to help small andmedium sized businesses breakthroughinto international sales opportunities inthe global market place, by providingall-inclusive export assistance to theSME sector.Frank-Uwe Ungerer, Country Managerfor DHL Express in the UAE, commented:“As the International Specialists, we believeit is our overarching duty to support ourbusiness partners and tailor our logisticsofferings to meet their ever changingbusiness needs. Our unique series of‘Partners in Trade’ events is an example ofour commitment to service excellence andsuperior logistics solutions, and furtherfacilitates our ability to share our expertiseand know-how with our customers whotrade between various markets.”44 November 2012

SKYCOMNEWSSkycom’s corporate office has a new plush addressSkycom Express, the comprehensivecourier and logistics servicesprovider, recently inaugurated its newcorporate headquarters in upscaleJumeirah Lake Towers, Dubai. The officialinauguration ceremony was presidedover by the Chairman Dilip Kulkarni andattended by senior company officialsand other especially-invited key logisticsprofessionals in the UAE.The new corporate head quarters in UAEwill function as the powerhouse for theentire Skycom global network. This is partof a Skycom’s continued developmentdrive since its very inception, evident inthe recent expansion into Saudi Arabiasoon after establishing Skycom in theGCC. Most of the senior executivesinvolved in developing the company’sgrowth strategy will now be based atcorporate head quarters in JLT. “This formspart of the wider strategy of Skycomwhich has facilitated growth and enabledthe company to grow from strength tostrength,” enthused Kulkarni, speaking onthe sidelines of the inauguralSkycom’s newly appointed GeneralManager Shariq Mahmood believes thatthe company’s new headquarters willbring convenience and integration toits operations and Skycom will be ableto better serve its growing clientele.“Centralizing the crux of the establishmentwill prove to be efficient and provide witha zealous and innovative environment,” heopinedHe also noted that Skycom has extensiveplans to expand its network globallyand would like to offer its customersthe best services and experience inthe logistics industry. Mahmood alsobriefed the assembled gathering aboutthe company’s plans in IT developmentwhich will catapult Skycom up amongthe select few companies that providesits customers enhanced, sophisticated,state-of-the-art technological supportamong other specialized services. “Ourfocus is on our customers and Skycom willcontinue to remain a customer centriccompany,” was his assuring message tothe company’s customers, constituentsand associates.GULFTAINERPort of Tripoli awards development bid to GulftainerSharjah, UAE-based port operator,Gulftainer, has been awarded theconcession to develop and operate a newcontainer terminal at the Port of Tripoli inNorthern Lebanon. The concession will lastfor 25 years and start with a much-neededinitial investment of over SD $ 60 million innew equipment and machinery, includingthree Ship-to-shore Gantry Cranes, nineYard Cranes and the latest technology inother container handlers and yardmanagement systems.This particular contract is part of a fullinfrastructure investment project for thesurrounding area that will see many millionsof dollars invested from both private andgovernment sources. Once complete,the new Gulftainer Terminal will be ableto accommodate some of the largestcontainer vessels operating in the EasternMediterranean, alleviating congestion at thePort of Beirut and providing an alternativeto the beleaguered ports of Tartous andLatakia in Syria.Not only will the terminal offer a newgateway for traffic into Lebanon, butGulftainer, through its in-house logisticscompany, Momentum, can now link Tripolito its facilities in Umm Qasr Port, Iraq. Thisrepresents the shortest distance acrossthe Arabian Peninsula connecting theMediterranean Sea to the Gulf avoiding thecommon choke points of the Suez Canal andStraits of Hormuz. In addition to the roadnetwork, it only requires 31km of track tobe developed before the two ports can belinked by rail. When complete, the GulftainerTerminal in Tripoli will provide over 300 newjobs as well as stimulating economic growthin the area.Gulftainer’s Managing Director, PeterRichards said, “We are absolutely delightedto have been awarded the concession tomanage the port of Tripoli and are nowanxious to begin developing a strongpartnership with the Port Authority.Gulftainer will be investing substantialresources and efforts into establishingwhat is required to improve performancelevels and bring new business to theregion. Gulftainer will take the leadwith a partnership approach with ourglobal customers, in an effort to improveefficiencies in the supply chain.”November 201245

NEWSBOEING ACQUISITION INDIAN OCEAN SHIPPINGBoeing acquires Miro Technologies toenhance logistics support servicesBoeing has acquired MiroTechnologies, a privately heldsoftware company specializing in enterpriseasset and supply chain management;maintenance, repair and overhaul (MRO)services; and Performance-Based Logistics(PBL) management for government andcommercial customers worldwide.Miro will become part of the GlobalServices & Support (GS&S) business withinBoeing Defence, Space & Security. Miroexpands a suite of GS&S products that linkand fuse data from existing systems forimproved mission readiness and reducedsustainment costs. This is the latestacquisition to advance Boeing’s defencelogistics support strategies; previousacquisitions include Tapestry Solutions,Federated Software Group, and CDMTechnologies.“Boeing’s services and logistics businesshas grown significantly in recent years,and Miro has been a trusted technologypartner during that time,” said TonyParasida, Boeing president of GS&S.“Bringing Miro into Boeing will provideus with industry-leading MRO and PBLsupply chain software capabilities to helpour customers plan and execute missionsacross the ground, air, sea and spacedomains.”Miro Technologies is based in La Jolla,Calif., employs approximately 120 people,and has operations in Saudi Arabia, Omanand the United Kingdom. “This importantacquisition is tied to Boeing’s strategiesof growing our global presence andinternational business, and expanding andenhancing our capabilities in the defencesector,” said Shep Hill, president of BoeingInternational and senior vice president ofBusiness Development and Strategy.The centrepiece of Miro’s capabilitiesis GOLDesp, a combat-proven,fully deployable software solutiondesigned for aftermarket logisticssupport; maintenance, supply andrepair operations; and PBL programmanagement. Boeing uses GOLDesp forsome of its largest PBL contracts, includingsupport for the C-17 Globemaster III andthe AH-64D Apache Longbow. Miro alsois part of the Boeing team supportingthe LogNEC (Logistic Network EnabledCapability) program, the end-to-endlogistics information system for theUnited Kingdom’s Ministry of Defence. Inaddition to Boeing, Miro supports otherleading defence companies and globalmilitary customers, including the RoyalSaudi Air Force and Oman Ministry ofDefence.Regional groupseeks safer IndianOcean shippingMinisters from 19 countries aroundthe Indian Ocean discussed waysto work together Friday to boost maritimesecurity and ensure that some of theworld›s busiest sea lanes are kept safe forglobal trade. The ministers recently met inNew Delhi to chalk out a 10-year roadmapfor the group to promote trade andinvestment in the fast-growing economicregion.India’s External Affairs Minister,Salman Khurshid, said the Indian Ocean’sgeo-strategic importance “cannot beunderestimated.” While the Indian Oceanrim countries have helped promoteunderstanding and cooperation amongthemselves, Khurshid said “immenseuntapped potential remained for greatertrade and economic relations.”The group has identified maritimesecurity as among its top most priorities.Over the past few years, pirates basedmostly in the African nation of Somalia,have taken over container ships, seizingcargos and holding crews for ransom.Although incidents of piracy havedeclined in the last year, it continues tothreaten sea trade of not just the IndianOcean states, but even that of the UnitedStates and Europe that depend on oilimports from the Gulf. About 70 percentof global traffic in petroleum products andhalf the world›s container traffic transitsthrough the Indian Ocean.“Despite the global economicslowdown and the slow recovery, IndianOcean rim economies performed wellin 2011, with their combined GDP at anestimated USD $ 6.5 trillion,” said SudhirVyas, an Indian diplomat. That was up fromUSD $ 5.7 trillion a year earlier, he noted.Set up in 1997, the Indian Ocean rimgroup includes Australia, India, Indonesia,Iran, Malaysia, Singapore and South Africa.China, France, Egypt, Japan and Britainattend the meetings as observers. At thiscurrent session, the United States wasinducted as a sixth observer in the group.46 November 2012

NEWSFree Zones expansionOman to spend USD $ 450 m on FreeTrade ZonesOman plans to invest USD $ 450million to extend its free tradezones across the country to attract moreforeign investment and diversify its oilrelianteconomy according to recentpress reports. Foreign direct investmenttumbled last year, and the small crudeexporter also needs to create tens ofthousands of jobs every year for its fastgrowingpopulation of some 2 millionnationals.The government is hoping that byextending its free trade zones it couldtackle both these problems at once. «Weare extending facilities of all free zones ina $450 million investment to attract moreforeign projects,» the state Free TradeZones Authority said in a press statement.“The extensions include expandingland, building warehouses, offices, roads,staff accommodations and storages. Theeffort will help diversify the economy inthe long run,” it said. Oman has four freetrade zones: in the northern industrialcity of Sohar, the southern port city ofSalalah, the central town of Duqm, andin Mazuna near the Yemeni border. Sofar, Sohar›s free trade zone has drawnthe most interest with some 14 foreigncompanies investing in metals, mineralsand logistics, according to statistics fromthe Sohar Free Zone.Foreign direct investment in Omanplunged 31 percent to USD $ 788 millionin 2011, when protesters demanded jobsand a crackdown on corruption. It wasthe lowest level since 2004, data from theUnited Nations Conference on Trade andDevelopment show.Free zones offer foreign investorsa chance to maintain 100 percentownership, no income tax and simplifiedtrading license procedures. However,businesses willing to set up there needto employ Omanis for at least 10 percentof their workforce. The government seesthe free zones as a way to diversify itsincome, as hydrocarbons make up around77 percent of the state budget revenue.Unemployment among Omanisexceeded 24 percent in 2010, accordingto an International Monetary Fundestimate based on the latest populationcensus. The government does not issuejobless data. Omanis formed a mere 14percent of the private sector labour forceof 1.3 million in 2011, a central bankreport showed.Qatar AirwaysQatar Airways to sellstake in CargoluxQatar Airways is to sell its stake inLuxembourg’s all-cargo airlineCargolux after a disagreement over thefuture direction of the airline, a Cargoluxspokeswoman recently revealed. QatarAirways bought a 35 per cent stake fromthe Luxembourg government and otherparties last summer, but has decided topull out after failing to agree on a strategyfor the airline during meetings, accordingto a Reuters report from Brussels.“The Luxembourg and Qatarishareholders disagreed on the futurestrategic orientation of the airline, whichled to Qatar›s decision to pull out ofCargolux,” according to a spokeswomanfor Cargolux, Europe›s largest all-cargoairline. No value was given for the stakewhen the purchase was announced inJune last yearRecyclingSRS opens electronics recycling plant in the UAESims Recycling Solutions (SRS), adivision of the global recycling firmSims Metal Management Ltd., has formeda trading subsidiary and opened its firstfacility in Jebel Ali, Dubai, United ArabEmirates. The decision follows a four-yearevaluation of the market, according toSRS. The company says that the researchwas done to ensure that the market in theMiddle East was ready for IT asset recoveryand electronics recycling services.With the opening of the plant, SRSsays Jebel Ali now hosts the Middle Eastregion’s first and only fully compliantwaste electrical and electronics recyclingand end-of-life asset management facilityoperating to globally recognized standards.The subsidiary of SMM will be known asSims Recycling Solutions FZE. Accordingto SMM, the new division will offer largecorporations, logistics companies andgovernment departments a secure facilityto recycle, reuse and remarket assets fromthe IT and Telecom sectors. A spokesmanfor SRS said that the facility will initially bean IT asset recovery operation with securedata wiping. It also will handle otherelectronic scrap and where equipmentcan›t be reused, it will be hand dismantledand bulked up for sale or onward shippingto one of SRS›s mechanical processingfacilities where full recycling will takeplace.Philip Hughes, director of SRS FZE,noted, “Over the past years there has beena growing awareness in the GCC Regionof the need for a better understanding of‘Green Solutions.’ For the general publicthis has manifested itself as a growingawareness of the need to “recycle domesticwaste products, especially high value itemssuch as IT and electronics.”48November 2012

NEWSETIHAD AIRWAYSEtihad Airways celebrates nine years of serviceEtihad Airways, the national airlineof the United Arab Emirates,commemorated its 9th anniversary on 5November 2012. At a ceremony to markthe occasion at its Abu Dhabi headquartersthis morning, the airline’s Chief CommercialOfficer, Peter Baumgartner was joinedby hundreds of staff as he cut the giantbirthday cake.Baumgartner said: “Etihad Airways hasachieved significant growth since it took tothe skies nine years ago. “We look forwardto many more years of safe operations,inspirational service and sustainableprofitability.”Etihad Airways, the national airline of theUnited Arab Emirates, began operationsin 2003, and in 2011 carried 8.3 millionpassengers. From its hub at Abu DhabiInternational Airport, Etihad Airways serves86 passenger and cargo destinations in theDUBAI EXPORTS- 3PL PROVIDERS LINKUPDubai Exports, the export promotionagency of the Department ofEconomic Development, Governmentof Dubai, has brought select third-partylogistics, or 3PL, providers to its partnershipnetwork as part of extending world class,value added services and capabilities toexporters in Dubai. “As a governmentfacilitator of trade in Dubai, we areconstantly seeking ways to provide valueadded third party services, such as creditinsurance, product certification amongother solutions to exporters,” said EngineerSaad Al Awadi, CEO, Dubai Exports.“In 2011, our partners in productinspection, certification and testingdirectly facilitated our members in AED50 million (USD $ 13.62) worth of exportsthrough various value added services.In 2012, those exports reached nearlyAED 130 million (USD $ 35.42) within thefirst eight months. We look forward toachieving greater successes with our new3PL partners,” commented Al Awadi. “Ourfocus in selecting our logistics partners isMiddle East, Africa, Europe, Asia, Australiaand the Americas, with a fleet of 67 Airbusand Boeing aircraft, and over 90 aircraft onfirm order, including 10 Airbus A380s, theworld’s largest passenger aircraft. In total,to have a balance between the local as wellas international perspectives on Dubai asa regional hub. It will ensure our membershave the right partners who understandtheir needs and help them grow theirbusiness,” he added.The new 3PL partnership will be asignificant addition to Dubai Exports’initiatives to promote exports and reexportsof local firms and facilitate theiraccess to new markets. The serviceproviders chosen by Dubai Exports as 3PLpartners initially include Global Shipping& Logistics (GSL), an associate company ofthe Al Shirawi Group of companies and BDPGlobal Project Logistics.GSL is a leading 3PL provider,strategically located at Dubai InvestmentsPark, from where it offers a wide portfolioof supply chain requirements includingfreight management, controlledwarehousing, transportation, distributionand customised packaging. “GSL’scustomer loyalty, extensive experience,quality, and integrated infrastructure havethe airline offers 327 global destinationswith its 41 code-share partnersincluding the four airlines it holds equityinvestments—airberlin, Air Seychelles,Virgin Australia and Aer Lingus.Dubai Exports ties up with 3PL providers to assist exportersmade the company the custodian of manypremium global brands and multinationalcorporations. Through this partnershipwith Dubai Exports we aim to provide valueadded services to both manufacturersand traders seeking 3PL services, therebyfacilitating their contribution to the nation’sGDP,” Khalid Al Shirawi, CEO, GSL observed.BDP, a part of the global groupBDP International headquartered inPhiladelphia, Pennsylvania, USA, servesglobal supply chains and leading industrysectors across 120 countries. Its servicesinclude transportation management,warehousing, distribution, freightforwarding, project logistics and customsclearance. “We are highly appreciative andsupportive of the efforts of Dubai Exportsto promote economic growth. BDP bringsto exporters in Dubai its global network,technology, local and global expertiseand value addition through complianceand proactive approach,” noted VirendraSehgal, Managing Director for the Gulf andMiddle East.November 201249

NEWSGULF TRAFFIC CONFERENCEGulf Traffic Conference puts participants on the road toexpertise and innovationGulf Traffic, organised by InformaExhibitions at the Abu DhabiNational Exhibition Centre, was held in theUAE capital between 19 and 21 November2012 and was attended by more than3,000 transport industry professionalsand government agencies from across theMiddle East. The event offered participantsa valuable platform to share ideas andtechnologies as countries in the regionexpanded road and rail infrastructure tosupport their growing economies and putin place world-class transport frameworksto host some of the world›s largest events.London’s experience in providing safeand efficient transportation for the 2012Olympics and Paralympics was a highlightof this year›s Gulf Traffic Conference. NeilHuddart, the Traffic Integration Manager ofLOCOG (London Organising Committee ofthe Olympic Games and Paralympic Games)was a keynote speaker and spoke of thechallenges major events place on domestictransport networks.A number of high-profile Qatari delegatesattended Gulf Traffic to network withtheir peers and shared the expertise andinnovative solutions they are developing.These delegates represented, amongothers, the Arab Center For EngineeringStudies; Salam International InvestmentCo; Al Jaber & Makhlouf; Smart MobilitySolutions; Doha Industrial Safety Services;Al Fahd Consulting & Technology; QatariDiar Real Estate Investment Co, and thePublic Works Authority (Ashghal).Qatari companies registered interestin the conference and focused on thedevelopment of data strategies andintelligence for the improvement ofroad safety, as well as ways to increasepedestrian safety and the implementationof Intelligent Transport Systems (ITS), givenQatar›s allocation of USD $ 17 billion inroad projects ahead of the 2022 FIFA WorldCup. The Gulf Traffic conference featuredtwo speakers from Public Works Authority(Ashghal) including Abdulaziz Al Sada,Head of Safety - Operations & Traffic ControlDivision & Imad Nassereddine, Highways &Roads O&M Advisor.Richard Pavitt, Gulf Traffic ExhibitionDirector said: “The conference came ata time when Qatar is considering majordecisions that will determine how its trafficand transport strategy evolves and isimplemented as it cements its reputationas a venue for global events, such as COP18 and the FIFA World Cup. Not only weredelegates from Qatar exposed to cuttingedgetechnologies from the region and therest of the world, but they were also ableto showcase home-grown solutions theyhave developed that specifically cater tothe region›s unique desert and urban roadcharacteristics.”One of these companies, Qatar MobilityInnovations Centre, was among the100 exhibitors at Gulf Traffic this year.It is the first independent research anddevelopment centre in Qatar and the Gulfregion, and focused on using emergingmobility and wireless technologies todeliver locally engineered innovations tothe market, addressing several marketsegments such as transport, environment,utilities, healthcare, and sports.A spokesperson at the Qatar MobilityInnovations Centre, said his company›sparticipation at Gulf Traffic this yearwas key to introducing the businessand its innovations to the public and itstarget market. «Taking part in Gulf Traffichighlighted the new solutions we havedeveloped and the applied researchactivities being carried out. One of ourpremier solutions is Masarak- an intelligenttransportation and logistics portfolio ofapplications and services - and it helpsmanage fleets, increase road safety,reduce congestion, and enhance travellerinformation and navigation, dispatchingservices and child-safety in Qatar.»Alternating each year between Dubai andAbu Dhabi, Gulf Traffic is the only dedicatedevent for the road, public transport andparking sectors. This year’s edition broughttogether more than 100 exhibitors involvedin the design, build and maintenance ofthe region›s road, rail, parking and publictransport projects. Now in its ninth edition,Gulf Traffic was endorsed by the CharteredInstitution of Highways and Transportation(CIHT), and is supported by the Abu DhabiPolice, Saaed, the Law Respect CultureBureau, and ITS Arab.52 November 2012

NEWSJAFZAJebel Ali Port T2 expansion passes halfway mark, workbegins on T3DP World Chairman Sultan AhmedBin Sulayem welcomed theprogress on the expansion at Jebel AliPort, which includes the brand new USD$ 850 million Terminal 3, saying it wascrucial in supporting the growth of Dubaiand the wider Middle East, Africa andSubcontinent region.Bin Sulayem’s comments came as herecently inspected the constructionunderway at Jebel Ali’s ContainerTerminals 2 and 3, accompanied byMohammed Ali Ahmed, Chief OperationsOfficer, DP World UAE Region, which areset to take total capacity at the port to19 million TEU (twenty foot equivalentcontainer units) by 2014.The expansion of Terminal 2, which willadd 1 million TEU-capacity, is on scheduleto open in the first half of 2013, with 60%of construction work completed. Work hasnow also begun on the new 4 million TEUcapacityTerminal 3, set to open in 2014.Sultan Ahmed Bin Sulayem, Chairman,DP World commented: “These expansionprojects are part of the grand visionand foresight of His Highness SheikhMohammed Bin Rashid Al Maktoum, VicePresident & Prime Minister of the UAE &Ruler of Dubai for the future of the Emirateand the nation. We are building to ensurethat Dubai and Jebel Ali Port continue toefficiently meet the needs of the shippinglines and traders serving the wider regionof two billion people. Increasingly thelines are seeking economies of scale withnew generation mega-ships, and we standready to handle these giants of the sea,reinforcing Dubai’s role as the centre oftrade in the region.”The T2 expansion extends the quay wall400 metres to 3000 metres, allowing thesimultaneous handling of six 15000 TEUmega ships. Work on the quay wall is nearlyfinished, with 99% of the quay wall blocksin place, 1890 (70%) of them underwater.The new T3 will be one of the finest modernmarine terminals in the world, with a quaylength of 1,860 metres, a 70 hectare storageyard, and a draft of 17 metres.The developments mean Jebel Ali Portwill be able to handle ten of the nextgeneration 18,000 TEU mega vessels at thesame time–the only port in the region ableto do so. Once completed, the expansionswill create more than 1,000 jobs directly. Inthe first six months of 2012 DP World, UAERegion, handled in Jebel Ali 6.6 millionTEU, 7.3% ahead of the same periodlast year.DP WORLDDP World wins prestigious award at India ShippingSummitGlobal marine terminal operatorDP World has won the MaritimeInfrastructure Award at the recent 8th IndiaShipping Summit 2012 held in the country’scommercial capital Mumbai in recognitionof its commitment and foresight indeveloping and operating ports that act ascatalysts to promote trade.The award given to DP World,Subcontinent was received by Jamal MajidBin Thaniah, Vice Chairman, DP World,during a recent gala dinner attended byHE Mohammed Sultan Al Owais, the UAE’sAmbassador to India, HE MohammedYousuf Al Awadhi, UAE Consul General inMumbai, Anil Singh, Senior Vice Presidentand Managing Director, DP WorldSubcontinent, and a large number of highlevel industry executives and governmentofficials.DP World operates five marine terminalsacross India, including the InternationalContainer Transshipment Terminal (ICTT)in Vallarpadam, Kerala, the country’s firstfacility with the capacity to handle newgeneration mega container vessels. Indiarecently relaxed its cabotage laws, allowingforeign registered container vessels in EXIMtrade to connect ICTT to other Indian ports.In comments made on the occasion,Jamal Majid Bin Thaniah, Vice Chairman,DP World, said: “Vallarpadam representsour vision of an India that competes withother global economies by directly linkingthe vast domestic market to the busiestinternational trade lane connectingAsia to Europe. India is a vital part of ourglobal portfolio and we are committed tosupporting India’s growth into the future.”Anil Singh, Senior Vice President andManaging Director, DP World Subcontinent,was also appreciative of the deal. “We takethis opportunity to thank the Governmentof India for liberalising the cabotageregulations and believe this will contributestrongly to the Indian economy. We thankthe India Shipping Summit for honouring uswith the Maritime Infrastructure Award. Weare determined to continue to support ourcustomers through efficient infrastructurewhere and when they need it,” he assured.India is the leading trade partner of theUAE and Dubai, with total trade valued atUSD $ 65 billion in 2011. In the first half of2012, trade between Dubai and India wasworth USD $ 21 billion, representing 13% ofDubai’s total foreign trade2.October 201253

SCLG Leadership CompositionMembershipGLOBAL THOUGHT ANDINDUSTRY LEADERSCorporate MembershipMembership with the Supply Chain and Logistics Group (SCLG)is open to all organisations. Corporate members may nominatefour 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 AnnualGeneral Meeting (AGM) and at any Extraordinary GeneralMeetings. The Board of Directors (BoD) and Executive Committee(EC) members shall decide the annual fees for membership.Individual MembershipOpen to any individual from any part of the world. The annualsubscription shall be set from time to time as deemed necessaryby the Board of Advisors and Executive Committee members.Student MembersOpen to students in Full Time Education only. Student membershipshall not convey any voting rights to the individual. The annualsubscription shall be set from time to time as deemed necessaryby the Board of Advisors / Executive committee members.Why be an SCLG MemberA membership allows access to educational training, seminarsand networking evenings at concessional and rebated rates. Italso provides rebates on subscription of membership to SCLG , sinternational partners. There is also a certificate that distinguishesa member as a professionally focused individual or enterprisecommitted 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 andlogistics community, please contact Kanchan Vora on admin@sclgme.org.The SCLG Middle East is a non-profit organization workingunder the umbrella of the Dubai Chamber of Commerce andIndustry to promote the cause of the supply chain and logisticsindustry. It brings opportunities for personal and professionaldevelopment through networking prospects among like-mindedprofessionals and corporations on a global basis.The SCLG was founded with the help of senior managmentprofessionals representing a wide spectrum of industries in thesupply chain. It strives to bring the best in education, seminarsand interaction through partnerships and alliances with a varietyof similar bodies across the globe. The Group , s official magazine,The Supply Chain and Logistics Link, addresses the needs of thesupply chain professionals in the Middle East. It presents news,views, developments and information drawn from industryexperts.The first of its kind in the region, The Link aspires to be abenchmark for the industry community, offering valuable insightsand information to the target market. The magazine , s articles andnews features cover innovative supply chain practices, emergingtechnologies, e-commerce and market information from industryleaders.Shashi ShekharFounder & Group President SCLGMohammad SharafDP WorldMichael ProffittClifford CuttelleSanjay NaikEmirates GroupJinendra SanchetiVidal FZEDr. John GattornaMishal KanooKanoo GroupFadi GhandourAramexSaadi Al RaisRHS LogisticsDavid WildMax Sales SolutionsHamdi OsmanEssa Al SalahAgility LogisticsNovember 201255

SCLG Leadership CompositionExecutive CommitteeINTERNATIONAL ADVISORSRavi SubramanyamPresident - SCLG UAE.Thomas FreeseUSADr. Jörg RissiekGermanyRishikesh TrivediEncore Enpower ServicesRobert CollierAlan WallerUKTim SensenigUSAMatthieu GasselinItalyDmitriy BulaenkoUkrainePaul LimSingaporeTerry LeeTaiwanBrian CartwrightLogistics ExecutiveDr. Balan SundarakaniUniversity of WollongongVineet AgarwalIndiaEdward SweeneyIrelandDr. Khalid BichouMoroccoAntony WalfordSwitzerlandDr. Ernst SchmiedAustriaFerenc KOVÁCSHungaryorganisation.To provide all members an opportunity tonetwork among each other and help facilitatean overall efficient commercial environment.Undertake studies, compute and maintaininformation, statistical data and officialdocuments relating to various aspects ofSupply Chain and Logistics industry for thebenefit of all.To establish and maintain contact with similarorganisations internationally and provide allmembers an opportunity to network with likemindedorganisations / members across theglobe. To conduct training courses, seminars,conferences and studies relating Supply Chainand Logistics; also establish a library andresearch centre relating this industry to expandthe knowledge base.To establish good relations with otherprofessional groups or societies that exist or tobe established locally or globally.To promote the cause of education in SupplyChain and Logistics among nationals of UAEand thereby contribute to build a cadre ofprofessionals and extra competent nationalsto take up current and future challenges of theSupply Chain and Logistics industries.Dr. Dermot CareyIrelandDr. Craig VoortmanSouth AfricaProf. Donald ThamCanadaDominique De FrobervilleMauritiusGerald M. MukyengaUgandaMark MillarAsia PacificMahendra AgarwalSingaporeAndrew SalibaMaltaIgor HribarSloveniaDr. Tom GulledgeUSADr. Ganesh NatarajanIndiaDr. John PaulSingaporeWinton MyersSouth AfricaDr. Heinrich FryeGermanyHorst DeffnerBrazil and NicaraguaAkin SawyerrNigeriaDominik SchmiedAustriaErik Van EgmondThe NetherlandsEd WeenkSpainRob O’ByrneAustraliaNovember 201257

In ClosingTechnology for Managing WarehousesShashi Shekhar advocates the harnessing of WMS for improved efficiency,qualitatively superior processes and increased productivityLast month I visited a colossal warehousehandling a large number of logistics businesstransactions but there has been a significantabsence of technology solutions that couldhave made this warehouse more efficient,qualitatively superior and productive. Technologyadoption in warehouses and in othercomponents of the logistics chain needs tobe further enhanced.A business leader in logistics industry recentlymentioned to me that there are technologiesthat he would wish to source andimplement but he remains concerned aboutthe benefits accrued in acquisition and implementationof technology solutions assome of these do not bring the intended rateof return. Technologies could be perceivedexpensive when one views the rate of returnin financial terms alone but these make moresense if one perceives the investments intechnology acquisition and implementationas a combination of the rate of return and theimproved levels of customer service.While there could be expensive technologysolutions more suitable for larger distributioncentre or very large warehouses, thereare modern-day warehouse managementsolutions (WMS) that can apply to small, mediumor large warehouses with not muchinvestment. In addition there are WMS solutionsavailable on demand pay-per-use basissignificantly reducing adoption and implementationcosts.An appropriate and well implementedWMS can help improve inventory accuracyof 94% to 99.5%, inventory reduction of up to50% within 3/4 years, space utilization up to20 % and labour savings of up to 40%.There are huge warehouses located inmany countries around the globe and operatingwithout enough information technologytools, not enough automation and notsufficient fork-lifts but functional in business.On the other hand, there are huge distributioncentres fully automated, operating withappropriate best practice enabled informationtechnology tools and further supportedby voice picking and RFID technology.The successfully automated warehousesShashi ShekharFounder & Group President SCLGPresident & CEO, innovaXLreport high operational efficiency, qualityand productivity and their personnel arebusy developing new business and turningmore volumes through their facilities whiletraditional warehouses are still busy solvingoperational problems and facing day to dayreduced productivity and quality. The warehousesand distribution centres are importantcomponents of logistics and make operationsvisible, efficient and customer-friendlythrough use of technology solutions like bestpractices enabled warehouse managementsystems, RFID, voice-picking, resource managementand innovation management.Having viewed and reviewed 50 plus warehousemanagement systems (WMS) operatingwith various platforms and a host of bestpractice features, I always recommend warehouseoperators to acquire and implement aWMS appropriate for their business. The commonlyavailable features in warehouse managementsystems are inventory management,ID and location capture (bar coding,RFID), inventory visibility (tracing), inventorymanagement, shipping, cross-docking, vendormanaged inventory, task management,manifesting, receiving and delivery, locationoptimizations, order management, routemanagement, shipping, accounting, billing,reporting and integration capability withother software.Research suggests that the well implementedWMS reduces labour costs, errorpenalties and lost opportunity expenses. Agood WMS increases inventory accuracy toeliminate ‘buffer’ stock, turns and frees upfloor space as well as cuts costs of forms &errors by eliminating repetitive paperworkprocedures. I have been a keen supporter ofbusiness delivering the best value for consumersleveraging technology. The businesschallenges faced by one organization couldbe different from other organizations.Through well implementedWMS, some organizations havereported improved inventory accuracyof 94% to 99.5%, inventoryreduction of up to 50% within 3/4years, space utilization up to 20 %and labour savings of up to 40%.The selection of an appropriate WMS callsfor significant efforts. So I recommend thatcurrent and future business requirementsbe reviewed before one starts shopping forWMS. Those who are looking for WMS solutionsin the near future are advised the following:• Determining whether WMS is flexible andadaptable to future constraints of business• Making sure that your WMS solution canadapt and grow in view of evolving businessneeds• Making financial business sense in termsof good rate of return and improving the rateof customer service• The WMS must consists of features thatthe business demands and ought to be RFand Voice picking enabled• The WMS technology vendor and implementationpartner both must have soundunderstanding of warehousing business, thebest practices and industry trends• Always seek guidance from experts inevaluating possible technology options beforethe final decision is made58 November 2012

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