20 jafza short

8/17/2019 20 JAFZA Short

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Jebel Ali Port and Free Zone


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Jebel Ali Port and Free Zone - the beginning

• The port was opened in 1979

• Six years later, in 198, a !a"or trade and ind#strial area, JebelAli Free Zone A#thority, was established ad"a$ent to the port


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%rowth in the &egion

• As the region de'eloped the de!and (or i!ported ite!s tosatis(y $ons#!er de!and and in(rastr#$t#re de'elop!entin$reased

• )any global $o!panies loo*ing to expand their operations in new!ar*ets 'iewed the %++ as a region in whi$h there was goodpotential to grow their b#siness

• ne o( the ongoing proble!s with ser'ing any o'erseas !ar*et is

the long transit ti!es between origin and destination


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Transit Ti!es by Sea to #bai

Port Transit time

(Days)

Durban, South Africa 13

Kobe, Japan 19

Nhava Sheva, India 4

Los Angees, !SA "#est $oast% 34

&ebourne, Austraia '1

Ne( )or*, !SA "+ast $oast% '

-otterda., Netherands 19

Shanghai, $hina 1/

Singapore 11


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• .n addition to the long transit ti!es by sea the total door todoor deli'ery ti!e had to be $onsidered

• The additional ti!e to !o'e the goods (ro! s#pplier to port o(

origin and port o( destination to $#sto!ers wareho#se $o#ld add,(or exa!ple, another 1/ days to the port to port transit ti!e


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Ti!e to )o'e %oods to and Fro! Ports

Minimum Middle High

Suppier to 0ort of rigin 1 ' 3

$usto.s $earance at rigin 1 3

$usto.s $earance at 0ort of Destination 1 3

0ort of Destination to $onsignee 1 ' 3

Additional Time beyond Port to Port transit time 4 10 16


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• These long transit ti!e had a big i!pa$t on both s#ppliers anddistrib#tors

• .( the distrib#tor experien$ed an #nexpe$ted in$rease in sales

it !ay ta*e a long ti!e to get new s#pplies – 0ost sales – &ed#$ed pro(it – 0ost $redibility

• .( the distrib#tor prote$ted itsel( (ro! this sit#ation byholding high in'entories this presented other proble!s – igger wareho#ses – +osts asso$iated with the wareho#ses – &is* o( in'entory be$o!ing obsolete


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Factories located across the globe

Long order / delivery lead

times, typically over 30 days

Distributors in 6 G countries

Goods delivered directto G distributors


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The 2((e$t ( Sto$* #ts

o not p#r$hase ite!

elay p#r$hase

S#bstit#te di((erent brand

#y ite! elsewhere

34 4 134 14 534 54 634


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&ed#$ing the Transit Ti!es

• S#ppliers loo*ed at ways o( red#$ing the transit ti!es to the region

• ne possibility was to set #p a &egional istrib#tion +entre withinthe region and s#pply their distrib#tors (ro! this (a$ility

• The !ain proble! with this was that goods wo#ld be exposed todo#ble i!port d#ty whi$h wo#ld $#t into pro(it !argins

• The $o!pany wo#ld also re#ire a lo$al partner who wo#ld expe$t a

share o( the pro(it

• Then, with the introd#$tion o( Jebel Ali Free Zone in 198 theseproble!s were sol'ed


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&ed#$ing the Transit Ti!es

• Any prod#$ts held in the Free Zone wo#ld not be s#b"e$t to d#ty#ntil they rea$hed their (inal destination

• A s#pplier $o#ld now $arry in'entory in Jebel Ali Free Zone and

re export to any other $o#ntry witho#t being exposed to do#bled#ty

• .n addition, $o!panies operating (ro! the Free Zone did notre#ire a lo$al partner


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Factories located across the globe

!nventory held in a "egional

Distribution entre in #ebel

$li Free %one- &o double duty

-&o local partner re'uired

G Distributors( order /

delivery lead times reduced

to bet)een * and + days


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Jebel Alis &egional and %lobal Signi(i$an$e as a0ogisti$s #b

• The s#$$ess o( Jebel Ali Port and Free Zone has been enor!o#s

• 'er /,33 $o!panies are present in the Free Zone

• n a'erage, 55 $o!panies a !onth ha'e entered the Free Zonesin$e it was opened


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So!e o( the %lobal +o!panies perating in Jebel Ali Free Zone

Audi 2o*s(agen J2$

ac* and Dec*er Kraft

$ogate 0a.oive &ars

Dai.er &itsubishi

D5L Neste

+66on &obi Nissan

7ed+6 0anasonic

7ord 0etro$hina

8A$ 0rocter and 8a.be

8enera +ectric !niever

8& -ec*itt enc*iser

8iette -os -oce

8a6oS.ithKine Sano

5aiburton Sa.sung

5ein: Schu.berger 5e(ett 0ac*ard Sharp

5itachi Son

5onda ;oshiba

5one(e !0S

5undai 2ovo

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