Issue 45 | MARCH 2012

YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE

www.log.ae

Benefits of adopting GSM-R

Logistics trends in the GCC

Nominations now open

LOG. LEOawards

BUILdINGraILwaYs

TOp MEGa TrENds

TRENDS | 24 PREVIEW | 32 REVIEW | 36

Safe and risk free delivery of perishables from farm to consumer | Page 06

Logistics of

perishables

Ey_Cargo2011_Stopwatch_LOG ME_206x270_V2.ai 1 20/10/2011 14:17

Reinhard Wind

Managing Director,

Gutenberg Publishing FZ-LLC

March 2012 I 3

On top againHaving lived in the financial capital of the

UAE for over six years, I have personally

experienced and observed the boom as

well as down times of the economy. Many

investors from all corners of the world have

taken advantage of the fast-paced market

here and received handsome returns. Not

everyone was that lucky, though. With the

downturn following the global crisis, a high

number of companies had to shut down and

look for greener pastures in other countries.

But the past is past. Since the beginning

of the year, many of my associates

with whom I had a chat with have been

expressing their positive expectations and

sharing signs of economic recovery. Another

confirmation now from the top echelon:

“Dubai has recovered from the economic

downturn,” recently said HE Sheikh

Mohammed bin Rashid al-Maktoum, Vice

President of the UAE, Prime Minister and

ruler of Dubai.

According to a recent posting on his

official website, the Ruler of Dubai also

instructed that officials should provide

incentives to help attract more foreign

investment and capital. Being a visionary

leader, Sheikh Mohammed added, “We must

look forward and find ways to work freely

without hindrance. Past experiences have

proved Dubai’s merit as a hub for business

and finance with the necessary infrastructure

to attract investors from the UAE and abroad.”

Of course, the market has contracted due

to the crisis and competition has become

tougher with a lot of players vying to get

a bigger share. But, this doesn’t deter us

from trying harder. It may be all bad news

from Europe or US but the story changes

completely once you set foot in the region.

Figures don’t lie: Middle East airlines

registered double-digit traffic growth in

international passenger traffic in January,

posting a 14.5 per cent increase, according

to IATA. Capacity rose 10.6 per cent and

load factor climbed 2.7 points to 78.5 per

cent, among the highest of the regions.

Furthermore, Middle Eastern carriers

enjoyed a 9.4 per cent rise in air freight

demand - again the healthiest performance

among the regions.

In addition, the success of the Gulf’s three

major aviation hubs – Dubai, Abu Dhabi and

Doha is well documented. Between 2007

and 2011, these airports added almost 31

million passengers, growing from 50.7 million

passengers to 81.5 million passengers said

the Centre for Asia-Pacific Aviation. Average

passenger growth of combined all three

airports was around 10.5 per cent – better

than the global average of nine per cent.

The space of this column will not be

enough to talk about the exponential growth

of Emirates, Etihad or Qatar Airways, not

to mention the low cost carriers such as

Air Arabia or flydubai – all envied by many

European airlines. What we see especially

in the Gulf nowadays is business back on

growth track, opening up opportunities and

shelved projects being re-visited. These

bring along new opportunities for local as

well as international companies and as I

often underline – the future is bright and

those with a positive attitude will always win...

Enjoy reading our March edition and please

feel free to send your comments.

PUBLISHER’S NOTE

IN THIS ISSUE

MARCH 2012

06

Heavily dependent on imports, the GCC’s food bill is expected to exceed US$53b by 2020. Importing food from over 150 countries, the authorities face the mammoth task of ensuring safe and disease free delivery of these items to the consumers.

dELIvErING BEfOrE ThEY pErIshCOVER STORY

TRENDS

Research firm Frost & Sullivan forecasts top five mega trends in logistics in the GCC and provides insights on the best practices in the sector.

fIvE MEGa LOGIsTIcs TrENds IN Gcc

PREVIEW

Nominations are now open to select the best of the logistics and supply chain industry in the region. More details inside on the 2012 event.

LOG. LEO awards

REVIEW

Rail authorities are seeking to invest in the most effective technologies for the upcoming GCC projects.

GsM-r fOr ThE raIL sEcTOr

TECHNOLOGY

Companies today should invest towards more strategic IT projects such as consolidation, virtualisation, and automation.

EMBracING cLOUd

INNOVATION

The economy is getting back on its feet again and organisations face more pressure than ever to get the human resources aspect right.

chaNGE cULTUrE

OVERVIEW

Connecting two continents, Turkey boasts one of the largest fleet of trucks transporting goods between Europe and the Middle East including the GCC countries.

rOad TraNspOrT IN TUrkEY

24

32

36

40

42

28

LOG. WINDOW 14 PRODUCT UPDATE 44 LOG. CLASSIfIEDS 46 LOG. CAfE` 48 EVENTS CALENDAR 50

I March 20126

COVER STORY: PERISHABLES

Logistics of perishables in the GCC and persistent challengesThe volume of food imported by the Gcc countries may double over the next decade, says one of the UaE’s top government officials, with the bill paid for food imports reaching up to Us$53.1bn in 2020 from Us$25.8bn in 2010.

March 2012 I 7

COVER STORY: PERISHABLES

One of the major challenges for any

business in the Gulf Cooperation

Council (GCC) countries is the

harsh weather. Sand and dust storms are

not uncommon and the temperatures

during the long summer months may

exceed 50oC. Obviously, the hot and

humid weather brings along difficulties

for companies handling food from farm

to consumer. The vendors also carry

the responsibility of creating the ideal

environment to keep the food items fresh,

intact and free from any health risks for

the consumers.

Due to the hot climate, lack of arable

land and water resources in the region,

a major portion of the food consumed by

the population is imported. According to

sources, consumption of food in the region

will reach 51.1 million tonnes in 2020, with

an average yearly growth of 4.6 per cent.

The projection is based on the population

growth of the GCC which is expected to

cross 50 million by the end of the decade.

In the UAE, the government has had

ambitious plans to convert portions of the

desert to arable land especially in Abu Dhabi.

However, the country still depends heavily

on food imports from all over the world. The

UAE’s imports are to grow from US$3 billion

in 2011 to US$8.4 billion in 2020 with an

annual average growth of 5.4 per cent.

Ensuring food safety

“Last year, Dubai has imported more than

six million tonnes of food comparing to

five million tonnes the previous year with

an 18 per cent increase, confirming the

leading role of Dubai as an important hub in

relation to the food stuff business,” said Eng.

Hussain Nasser Lootah, Director General

of Dubai Municipality (DM). The emirate

imports food from over 150 countries,

which brings along unique challenges with

regards to logistics and safety.

With a huge and increasing food bill, the

authorities strive to tackle various challenges.

They stress that the food sources should

be both safe and sustainable. The efforts of

relevant authorities should be coordinated

through developing initiatives and programs.

Furthermore, the best international

practices in food safety, specifications, laws

and procedures ensuring the human ethics

of the regional and international trade

shall all be considered according the top

executive at DM.

I March 20128

Food-poisoning alarm system

With extremely hot and humid weather in the

GCC, food poisoning cases especially during

summer months are widespread. The fault

lies either with the logistics services provider,

the vendor or the consumer. Whatever the

reason, an early-warning system is set to

be introduced in the region to be able to

prevent the spread of food poisoning.

The so-called ‘GCC Rapid Alert System

for Food’ will be based in Riyadh, Saudi

Arabia and notify member countries when an

outbreak is registered. Then, instant alerts

will be issued if any product is found to pose

a danger. Those goods will be recalled or

prevented from entering the GCC.

Speaking at the Dubai International

Food Safety Conference, Dr Hamad Al

Kanhal, director of surveillance centres

and crisis management, Saudi Food and

Drug Authority said, “Our goal is to ensure

coordination between the GCC countries

with regards to food safety and protect

consumers from dangers related to food.”

Experts also called for the creation of

effective laws and programmes that will help

solve problems regarding safe and healthy

food in the region. Working in tandem with

international organisations such as the

World Health Organisation (WHO) and the

Food and Agriculture Organisation (FAO) will

help reduce the risks with food and contain

any issues before they spread.

PulseNet International

Furthermore, the emirate of Dubai

will become a member of the

PulseNet International, which monitors

food-borne bacteria. The network

coordinates with the WHO, the US

Centres for Disease Control and

Prevention (CDC), and the Association

of Public Health Laboratories.

Abdulwahab Alraeesi, head of Food

Studies and Planning, Food Control

Department Dubai Municipality said through

this tie-up, ‘Dubai will be able to track the

most common pathogens’ serotype to the

source or to the epidemic geographical

areas and take necessary preventive

actions against newly detected serotypes

around the world.’

The department will also be able to

examine the construction of the bacteria,

find the nature of that organism and track

the organism to the source. Then, the use

of the product will be put under control to

avoid any further issues.

Logistics of perishables

“By value, over 35 per cent of goods

traded internationally are handled by

air. But this accounts for just 0.5 per

cent of global volumes traded. Air cargo

provides the connectivity that is at the

core of modern businesses serving global

markets. The growth potential is enormous.

The challenge is to propel that growth

sustainably, with quality products, efficiently

delivered by a well-coordinated value

chain,” said Tony Tyler, IATA’s Director

General and CEO.

From weather conditions to politics,

winning in the perishable logistics industry,

requires having all the elements under

control, shares Move One’s Perishables

Product Manager Anders Bonde.

The global transportation of commodities

has become a necessity in the modern

world, with shipping and logistics following

rapid economic and political change. This

includes the movement of temperature-

sensitive goods, perishable commodities

Consumption of food in the region will reach 51.1 million tonnes in 2020, with an average yearly growth of 4.6 per cent. The projection is based on the population growth of the GCC which is expected to cross 50 million by the end of the decade.

COVER STORY: PERISHABLES

“We make companiessustainable and competitiveon an international level.

We enhance their sales structuresand do everything that is neededto make them succeed.

We do that in the shortestperiod of timethat you can think of.”

Wind & Wind

what we offer

market communication•brand positioning•product placement•

sales strategy execution•sourcing new clients•

contract negotiations•customer relationship management•

project management•company representation•

SalesSuccess

Management

Wind & Wind FZ LLCP.O.Box 487177Dubai Media City Represented byGutenberg Publishing FZ-LLCDubai, United Arab Emirates

T +971 4 4334 360F +971 4 4517 945E info@wind-wind.comW www.wind-wind.com

I March 201210

that are liable to expire, decay, or spoil

quickly. Such goods require the most

efficient supply chain, not only in terms

of technology and know-how, but also in

terms of timely delivery, in order to respond

rapidly to market needs.

Today, the term “seasonal” for fruit and

vegetables almost doesn’t exist anymore.

Food is shipped from one part of the world

to another, on a daily basis, to meet the

demand of consumers, regardless of the

time of year.

Cold chain technology

Perishable logistics relies on cold chain

technology to maintain proper temperatures

during handling and transport. This is

essential in preserving the quality of

perishable goods such as fresh meat,

seafood, ripe fruits, and temperature-

sensitive medical products.

When perishable commodities are

transported from producers to consumers,

they are expected to stay fresh across

considerable distances. Perhaps one of

the most important keys to success in the

cold chain is controlling the temperature

in various shipping circumstances. This is

particularly challenging when considering

that different products require different

temperature maintenance.

Common temperature standards include:

banana (13 °C), chill (2 °C), frozen (-18 °C), and

deep frozen (-29 °C). Depending of the type

of product and standard set, different types

of containers and refrigeration methods

are required. It is of due importance that

proper packaging is used, depending on

temperature standard, type of product,

duration of transit, size of shipment, and

outside temperature.

To ensure the quality of goods and

services, a number of cold chain technologies

are used. The most common ones are:

Dry ice: Solid carbon dioxide, which does

not melt. It keeps a shipment frozen during

extended periods of time at approximately

-80°C. It is suitable for shipping of

pharmaceuticals, dangerous goods, and food.

Gel packs: Mostly used for pharmaceuticals

and medical shipments which must be

stored at a temperature between 2 and 8°C.

Gel packs may melt during the transit

process, while still maintaining an internal

temperature. An alternative to gel packs is

eutectic plates filled withliquid, which can

be reused many times.

Liquid nitrogen: Used to keep items frozen

over extensive period of time, mostly for the

transport of biological cargo. Its temperature

is approximately -196°C, and it is considered

a hazardous substance.

Quilts: Serve as a buffer in circumstances

of temperature variations. They keep the

temperature constant and are therefore

often used to keep sensitive goods at room

temperature, protecting them from outside

temperature changes.

Reefers: A container with controlled

temperature. It can be an ISO container, a

van, or a small truck, with the temperature

maintained by an attached, independent

refrigeration plant.

Depending on the type of product and standard set, different types of containers and refrigeration methods are required. It is of due importance that proper packaging is used, depending of temperature standard, type of product, duration of transit, size of shipment, and outside temperature.

COVER STORY: PERISHABLES

I March 201212

Professional help

A professional and organised perishable

supply chain and transportation network is

the most important component of shipping

quality and fresh foods, and, consequently,

the food industry worldwide. It requires

professional staff, modern equipment, and

knowledge of many different regulations

in various countries. Long transit times

or poor handling may lead to spoilage

of perishable goods, which may result in

potential food-borne illness.

Distance, transit, and time of transport

of perishable goods are not the only

challenges of the cold chain. Other

factors influence the quality of cold chain

services, such as weather conditions,

political affairs, various regulations, and

technical problems.

Weather conditions are one of the major

concerns when it comes to perishable

logistics. Extreme warm or cold outside

temperatures may be a great disadvantage

when loading or offloading trucks and

airplanes. Simple solutions, such as loading

during night in warm areas, or during

midday in cold environments, may help in

preserving the quality of goods.

Political affairs, such as the transport

of perishable goods to or through conflict

areas, may represent another obstacle.

In such cases routes should be carefully

chosen prior to shipping. Otherwise, there

is a danger of long delay, which often

results in inability to preserve the freshness

of goods. Furthermore, local and regional

regulations, such as bans on storing

cargo with dry ice in small closed areas in

Europe, or special provisions for transport

of medical equipment and supplies, should

be carefully followed by all cold chain

participants and contributors.

Other common problems of cold chain

logistic are technical in nature. Equipment

is disposable and prone to damage. It is

therefore of high importance for any cold

chain to ensure backup equipment and

technical support, regardless of location, or

type of equipment.

Making a difference

Many professional companies with long

experience in perishable logistics have

developed procedures and methods of

solving such problems. With five years

experience in perishable logistics in

Afghanistan, Iraq, Mongolia, Central Asia,

and Africa, logistics professionals from

Move One Inc., with headquarters in Dubai,

provide their clients with full cold chain

supply logistics, including storage, transport

(truck, rail, ocean, and air), customs

clearance/deliveries, and IT solutions.

The company has extensive experience

in providing service of perishable

commodities movement and logistics.

Currently, they transport food (fresh fruits

and vegetables, and frozen meat) from

Europe to Kabul in Afghanistan for NATO/

ISAF and various catering companies in

addition to other ongoing projects in South

Iraq using reefer/dry trucks and South

Mongolia using ocean and truck transport.

Apart from technology, the shipment of

fresh and frozen food requires that every

party involved is educated and trained in

“From weather conditions to politics, winning in the perishable logistics industry, requires having all the elements under control”

COVER STORY: PERISHABLES

- Anders Bonde, Perishables Product Manager, Move One

March 2012 I 13

COVER STORY: PERISHABLES

handling perishables. From the time the

shipment is ready in Europe, Move One

experts have 72 hours to deliver it to the

final consignee in Afghanistan, which

requires monitoring 24 hours a day and

immediate action if any delays occur. Such

operations, week-by-week, require skill,

knowledge, and know-how. Nevertheless,

the main competence of the logistics

company is destination services in

challenging areas, those affected by wars,

natural disasters, or strict and unreliable

governmental restrictions.

And finally, consumption level of

perishable foods in the world increases

each year. The industry is demand-driven

and, therefore, increases the necessity of

even more efficient cold chains in terms

of reducing the time-to-market. It requires

high problem-solving skills supported by

technological means. If logistics providers

want to stay on top of the cold chain

game, they must continuously search for

new technologies that will advance their

operations and competitiveness.

Gulfood – one of the largest

Claimed to be one of the world’s largest

trade show for the food and beverage

industry, Gulfood 2012, which took place

from 19-22 February in Dubai, UAE featured

3,800 exhibitors from 88 countries and

110 international pavilions highlighted the

role that the show plays in facilitating trade

between suppliers and buyers and the access

provided to the lucrative markets of the

region. The organisers announced that the

show, which covered an area of one million

square feet, attracted over 68,000 trade

visitors. Gulfood plays a key role in facilitating

exports and global trade as many international

delegations, agricultural ministries and export

missions attended the event.

Al Ghurair Foods, another food industry

giant founded in the UAE, made a number

of key announcements during Gulfood.

The company’s chairman Essa Al Ghurair

confirmed the acquisition of 100,000

hectares of farmland in Sudan to grow

grain, a move in line with the UAE’s efforts

to address food security concerns. The

company also announced investment in a

new US$10 million plant in the UAE for the

production of lecithin, an oil by-product

used in bakeries and animal feed.

The show also highlighted excellence

in the industry through the annual Gulfood

Awards. The awards attracted more

than 120 entries from 30 countries in

20 different categories including: best

health education initiative, best new halal

food, best environmental sustainability

initiative, and best packaging innovation.

Delegates at the Gulfood Conference

enjoyed privileged access to the latest

knowledge and business advice over

four key summits: Food Leaders Summit;

Foodpreneur Forum; Food Packaging

& Processing Forum; and the Gulfood

Workshop on Franchising.

Distance, transit, and time of transport of perishable goods are not the only challenges of the cold chain. Other factors influence the quality of cold chain services, such as weather conditions, political affairs, various regulations, and technical problems.

Gulfood took place in Dubai from 19-22 February

I March 201214

Mohebi Logistics to build new facility in Dubai Mohebi Logistics has announced plans

to invest up to AED350 million to build its

new headquarters and logistics facility in

Dubai Logistics City (DLC) at Dubai World

Central (DWC). HH Sheikh Ahmed Bin Saeed

Al Maktoum, Chairman, Dubai Aviation

City Corporation, and Mohammed Mohebi,

Mohebi Logistics CEO, signed the lease

agreement for the 1.5 million sq ft plot.

HH Sheikh Ahmed said: “Dubai World

Central consolidates Dubai’s position

as a major international logistics hub.

It establishes a strategic link to global

markets and plays a crucial role in meeting

the present and future needs of Dubai’s

aviation, tourism, trade and logistics

sectors. Moreover, Dubai World Central

demonstrates Dubai Government’s

commitment to support key industry players

such as Mohebi Logistics by providing

the right combination of world-class

infrastructure and value-added services.”

“We are proud and excited at the

prospect of becoming a strategic partner

of Dubai World Central and key contributor

to Dubai’s continued economic growth. It is

important that Emirati talent and know-how

offered by home-grown companies are

developed to support our leadership’s vision

of creating a knowledge-based economy.

Dubai World Central will play a critical

role in showcasing both Emirati talent and

corporate capabilities, which in my opinion is

key in serving our national interests,” added

Mohammed Mohebi, Mohebi Logistics CEO.

Mohebi Logistics, which is part of the

Zainal Mohebi Group, will build its corporate

headquarters and facilities comprising

approx. 110,000 pallet positions, expanding

the company’s storage and logistics

facilities and almost doubling its capacity to

serve its regional and global clientele. The

headquarters and temperature-controlled

warehousing facilities will be constructed in

two phases.

The construction of a new logistics base

in DLC is part of AED1 billion in investments

that Mohebi Investments earmarked to

establish itself as a major regional player.

Zainal Mohebi Group will consolidate its

FMCG operations in a single location at

Dubai World Central.

Khalifa Al Zaffin, Executive Chairman,

Dubai Aviation City Corporation, said: “Dubai

Logistics City supports the growing logistical

needs of the region’s burgeoning business

community. Furthermore, it provides direct

access to a comprehensive range of state-

of-the-art infrastructure and services and

multi-modal transport within a centralized

location at Dubai World Central. This creates

the perfect environment for the logistics

community to synergize and unlock fresh

opportunities for business growth.”

Leschaco recently celebrated the official

opening of its new operational office

Leschaco Freight Solutions LLC in Dubai.

By opening a new support base for the

worldwide network, Leschaco broadens its

presence within the market. With customer

oriented individual logistics solutions in

seafreight, airfreight, contract logistics and

tank container operations Leschaco offers

its customers the whole range of services

within the logistics spectrum.

“This is a major step in building

Leschaco’s global footprint by opening

our own operation office in Dubai. Dubai

being a well-recognized hub for the region

will add great value to our network and

customers“, said Joerg Conrad, owner of

the Leschaco Group.

“This young team, which already boasts

of over 100 years of combined professional

experience in the region, is optimistic

that they will make a positive impact in

this market soon. I am very confident

about that”, added the Managing Director

Shamsudeen Ahmed.

The Middle East region is managed

by Shamsudeen Ahmed, a veteran with

over 30 years experience in the logistics

industry within Middle East supported by

a team for sales and operations. Leschaco

is a privately owned group of companies

offering worldwide logistics solutions

in sea and air freight, contract logistics

and tank containers. Leschaco assists

leading companies in plant construction

and mechanical engineering, automotive,

chemical and related industries, producers

of consumer goods and pharmaceuticals.

LOG. WINDOW

Leschaco now operational in the Middle East

High level executives after the signing of the lease agreement (L-R): Rashed Bu Qara’a, COO, DACC; Mohammed Mohebi, CEO, Mohebi Logistics; HH Sh. Ahmed Bin Saeed Al Maktoum, Chairman, DACC; and Khalifa Al Zaffin, Executive Chairman, DACC

LOG. WINDOW

Dubai Airport handles 4.85 m passengers in January Dubai International began 2012 on a

strong note with record monthly passenger

traffic of over 4.85 million in January,

according to the latest traffic report issued by

Dubai Airports. Passenger traffic in January

reached 4,85 million passengers, surpassing

the previous record of 4,72 million of July

2011, and a 14 per cent increase compared

January 2011. The upsurge is the largest

month-on-month increase in 14 months. This

performance brings Dubai International’s

rolling 12-month passenger numbers to

51.57 million and builds on the historic 50.98

million passengers recorded in 2011.

The AGCC continued to top the list of

regions with the largest increase in total

passenger numbers in January (+203,219

passengers), followed by Western Europe

(+100,902), the Indian subcontinent

(+92,855 passengers), and Russia and the

CIS (+77,454 passengers). Middle Eastern

routes continued the downward trend in

the New Year (-4,747 passengers) owing to

on-going unrest in the region, while traffic on

African routes surged after months of weak

performance (+34,909 passengers).

Spurred by the launch of Emirates

Airline’s new routes to Rio de Janeiro and

Buenos Aires, South America was the

strongest market in terms of percentage

passenger growth in January (+71.4pc),

followed by Russia and CIS (+57.3pc) driven

by the expansion of Dubai’s low cost

carrier flydubai in the region, and the AGCC

(+36.9pc) as a result of growth in Saudi

Arabian traffic. Eastern Europe (20.6pc)

and Australasia (16.7pc) also achieved high

growth rates. Total aircraft movements for

Dubai International rose 8.4 per cent to

29,680 compared to 27,385 last January.

Cargo volumes contracted 2.6 per cent to

173,531 tonnes compared to 178,199 tonnes

in January last year reflecting on-going

weaker global airfreight demand and fragile

consumer confidence.

“It is fitting that we started a record-

breaking year with record monthly

passenger numbers. Our projections indicate

2012 traffic totals will reach 56.5 million,

obliterating last year’s record of 51 million,”

said Paul Griffiths, CEO of Dubai Airports.

Dubai International is the fourth-busiest

airport worldwide for international passenger

and cargo traffic.

INNOVATIVE LOGISTICSGeodis Wilson UAE LLCPO Box 219, Jabel Ali Freezone UAETel. +971 4 880 9220 Fax. +971 4 880 9337info@geodiswilson.com

www.geodiswilson.com

I March 201216

LOG. WINDOW

Alstom and Cofely Besix FM to maintain Dubai tramway

The Roads and Transport Authority of the

Government of Dubai (RTA) has awarded

a 13-year maintenance contract for the Al

Sufouh tramway in Dubai, in the United

Arab Emirates, to a consortium comprised

of Alstom and Cofely Besix Facility

Management (FM). The total value of the

contract amounts to €120 million, including

€68 million for Alstom, the consortium’s

leader, and €52 million for Cofely Besix

FM. It includes an option for a five-year

extension in the amount of €50 million,

The contract is for the maintenance of

the rolling stock and fixed installations to be

delivered by Alstom and Cofely Besix FM

for phase 1 of the Dubai tramway project.

This phase 1 includes the supply of 11

Citadis tramsets, 10 km of track, 13 stations

and other equipment (electrification,

signalling, ticketing systems, etc.).

The maintenance contract includes

preventive and corrective routine

maintenance, equipment renewal, technical

support, management of spare-parts

inventories for the Citadis tramsets and

the implementation of major maintenance

programme. It also involves maintaining the

passenger stations, maintenance depot,

track and platforms, points and crossings,

power supply and distribution equipment,

ground-level power supply system (APS),

communication and signalling systems and

other electromechanical installations in

perfect condition.

Cofely Besix FM will be in charge of

maintaining the stations and depot (MEP

Mechanical, Electrical, Plumbing) and will

provide associated services in the stations

and along the track.

Calogi has added another paper-free

feature to its range of supply chain products,

with a new solution to simplify the courier

business. The new solution represents

another step forward in Calogi’s quest to

remove paper from the air cargo supply

chain. Designed by industry experts and the

Calogi Express Handling module provides

airlines and integrators with complete

control and visibility of their premium, time-

sensitive shipments.

In the past, integrators have been

processing their courier shipments tendered

to commercial airlines, using outdated paper-

based processes. For example, airlines were

distributing rate sheets to agents and cargo

terminals alike, the cargo terminals were

re-keying courier shipment data and invoices

for GHA charges were being raised manually,

this adds up to a considerable amount of

time and effort for all parties. The Calogi

courier solution now effectively makes paper

documents obsolete and removes the need

to rekey the data.

The new solution can shave 30 minutes

from the time taken to process a courier

shipment and the margin of error is reduced

by 99 per cent.

Calogi’s solution simplifies courier business

Passenger traffic up, cargo volumes decline

The International Air Transport

Association (IATA) announced global traffic

results for January showing a 5.7 per cent

rise in passenger demand but an 8.0 per

cent decline in air freight compared to the

same month in 2011. The underlying trend

was for stronger passenger growth, while

stabilized weakness in cargo markets

continues.

“The year started with some hopeful

news on business confidence. It appears

that freight markets have stabilized,

albeit at weak levels. And this is having a

positive impact on business-related travel.

However, airlines face two big risks: rising

oil prices and Europe’s sovereign debt

crisis,” said IATA’s Director General and

CEO Tony Tyler.

Freight markets stood at 8 per cent

below January 2011 levels. The decline in

air freight stabilized in the fourth quarter

of 2011, at levels 4 per cent below the

2008 pre-crisis peak. There was a 2.5

per cent fall in global freight markets

from December to January, but this is

almost totally attributable to the impact of

factory closures due to the Chinese New

Year. Freight capacity contracted by 0.6

per cent year over year, and freight load

factor fell to 41 per cent as deliveries of

new widebody passenger aircraft offset

measures to reduce freight capacity.

Tony Tyler, Director General and CEO, IATA

Patrick Murray, Head of Calogi

March 2012 I 17

LOG. WINDOW

DP World honours committee of civil ports DP World, UAE Region has applauded

the leading role of the Higher Committee

for UAE Civil Seaports and Airport Security

in promoting a safe and transparent work

environment at the country’s ports. At an event

held recently at Jebel Ali Port, Mohammed Al

Muallem, Senior Vice President and Managing

Director, DP World, UAE Region, presented

HE Sultan Bin Yakoub Al-Zaabi, the Executive

Director of the Higher Committee for UAE

Civil Seaports and Airports Security, with an

appreciation award, in recognition of the

committee’s support and efficiency.

DP World, UAE Region reiterated its

commitment to the strategic partnership

with the Higher Committee for UAE Civil

Seaports and Airport Security which helps the

company augment the safety and security at

its ports and plays a vital role in boosting the

UAE economy.

Mohammed Al Muallem, Sr. VP and MD,

DP World, UAE Region, said: “DP World

has always taken port security and safety

seriously, and is diligent about implementing

security-related measures in the port

environment. The Higher Committee for

UAE Civil Seaports and Airports Security is a

valuable partner in this exercise, and we thank

them for their support. We are confident that

our continued cooperation will uphold Dubai’s

status as the premier maritime industry hub in

the region.”

HE Sultan Bin Yakoub Al-Zaabi, Executive

Director of the Higher Committee for UAE

Civil Seaports and Airports Security said: “The

committee is following the instructions of HH

Sheikh Hamdan bin Mubarak to enhance

the pioneering role of the UAE ports through

a number of specified procedures. This

pioneering role was promoted through the

UAE’s implementation of The International

Ship and Port Facility Security Code.

“DP World has always adopted best

practices to enhance security of ships and

port facilities while maintaining a commercially

vibrant environment. We are proud of our

accomplishments, because it shows the

improved security level in the country’s ports

and reiterates its distinction as a strategic

partner to the committee at the country’s ports.”

(L-R) Mohammed Al Muallem, Sr. VP & MD, DP World, UAE Region, Sultan Bin Yakoub Al-Zaabi, Executive Director of the Higher Committee for UAE Civil Seaports and Airports Security, Mahmood Amin, CEO, World Security

Centre Point Logistics to support Geodis Wilson Dubai based Centre Point Logistics

(CPL) and Geodis Wilson, a global freight

management company, have inked an

agreement to further support Geodis

Wilson’s logistics operations in the UAE.

The agreement was signed by Saleh Saeed

Lootah, Chairman, CPL, and Sascha Geiken,

Managing Director, Geodis Wilson in Dubai.

“We are pleased to have Geodis Wilson

on our client list while supporting their

regional growth and we are confident that

the partnership will create synergies for

optimizing our services and developing

a powerful platform for mutual business

opportunities in the logistics industry,” said

Mr. Lootah.

Commenting on the partnership, Mr.

Geiken said: “The demand for contract

logistics is very high in the Middle East

region. We are glad to work with CPL to

further enhance our capabilities in the

region and continue to deliver unique

quality and customized solutions in the

logistics industry.”

Geodis Wilson is a global logistics

provider with a network of 6,400

employees in more than 50 countries. The

agreement with CPL marks a new milestone

in the development of our global network to

offer our clients the best in class solutions,”

added Mr. Geiken.

While Dubai is strategically located to

serve the needs of growing trade, export

and transportation of goods in the Middle

East region, the agreement between CPL

and Geodis Wilson will further establish

its position as a large logistics hub where

international Third Party Logistics (3PLs)

companies provide cutting-edge contract

logistics solutions to clients worldwide.

Saleh Saeed Lootah (L), Chairman, CPL, and Sascha Geiken, Managing Director, Geodis Wilson signing the MoU

I March 201218

LOG. WINDOW

Etihad posts $137m profit in 2011

ENOC highlights guidelines for safe oil transfer

Etihad Airways, the national carrier of

the United Arab Emirates, reported a full

year EBIT of US$137 million, on revenues

up 36.0 per cent to US$4.1 billion. The

results included earnings before interest,

tax, depreciation, amortisation and rentals

(EBITDAR) of US$648 million, with a net

profit of US$14 million. The record result

exceeded the airline’s 2011 target, which

was to break even.

James Hogan, President and CEO of

Etihad Airways, said: “This is an historic

day for Etihad Airways and an amazing

achievement for an airline just eight years

old. Five years ago we said we would

be profitable by 2011. Despite the global

financial crisis, continued high oil prices,

regional instability and natural disasters,

we have delivered. Given the challenges

faced by the industry, our combination of

revenue growth and entry into profitability

must be one of the best results of any

airline in 2011.”

“The airberlin deal will be our most

important catalyst for growth in 2012. It has

given us instant access to Europe’s largest

travel market, and will have a major impact

on revenues in 2012, with an expected

contribution of up to US$50 million. And

of course, 2011 marked the first full year

of Etihad Airways’ strategic partnership

with Virgin Australia, which offers 45

destinations in Australia and the Pacific,

and boosted revenue by 700 per cent

over what we achieved with our previous

Australian airline partner.”

The CEO said cost control had been a

significant contributor to the airline’s profit,

with costs per available seat kilometre

(CASK), excluding fuel, being cut by 4.6 per

cent in 2011 and 16.6 per cent over the last

two years, representing annual savings of

more than US$187 million.

Emirates National Oil Company (ENOC)

organised a workshop to highlight the best

practices in marine safety and pollution

prevention from ships involved in oil cargo

transfer ship to shore interface operations.

The workshop, held in Singapore,

was supported by Oil Companies

International Marine Forum (OCIMF) and

its Ship Inspection Report Exchange (SIRE)

administrators. The SIRE Programme is

an initiative developed by the OCIMF to

address, and improve global safety and

pollution prevention from tanker ships.

The workshop also featured an

interactive forum where the participants

discussed various technical aspects,

the challenges faced by the sector and

suggested recommendations to improve

the SIRE programme.

Saif Al Falasi, Executive Director – EHSQ

& Corporate Affairs of ENOC, said: “The

workshop received overwhelming interest

from the large tanker operators in the

Far East. The event served as a perfect

opportunity to highlight ENOC’s commitment

to quality across all the geographic areas

where the company operates. Addressing

safety and pollution prevention is of

particular significance to the shipping sector,

and the workshop enabled knowledge

transfer and exchange of best practices that

will benefit all stakeholders.”

An OCIMF member, ENOC has been

involved in promoting the SIRE programme

to bunker barges operators conducting

business in Singapore. The ENOC EHSQ

Compliance Directorate has made it an

annual event since 2009.

uAe non-oil foreign trade on a growth path

The United Arab Emirates’ non-oil

foreign trade has been on the go for the

first 10 months of 2011 compared to the

same period of the previous year. Federal

Customs Authority (FCA) initial statistical

data indicates a year-on-year 22 per cent

increase in non-oil foreign trade from

January to the end of October 2011.

According to FCA, statistical data

for the first 10 months of 2011 indicate

a non-oil foreign trade increase from

Dhs622.5 billion in for the same period

in 2010 to Dhs759.8 billion in 2011, which

is an increase of Dhs137.3 million. Data

on import growth reveals a 24 per cent

increase, thus moving from Dhs399.2

billion in 2010 to Dhs493.8 billion in 2011

for same period.

Exports witnessed a growth rate hitting

34 per cent during the period due to a

value increase from Dhs70.2 billion to

Dhs93.9 billion. Re-exports, however,

experienced a growth rate of 12 per cent

to go up from Dhs153 billion to Dhs172.1

bilion for the same period.

Each of India, the US, China, Japan,

Germany, France, United Kingdom,

Italy, Switzerland, and South Korea,

respectively, topped exporters’ list to the

UAE in October 2011 with a total value of

Dhs36.1 billion, or 63 per cent of the UAE

total imports.

“On the level of non-oil exports,

India, Iran, Singapore, Turkey, Thailand,

Switzerland, Saudi Arabia, Kuwait, Iraq,

and Qatar, respectively, spearheaded

importers from the UAE with Dhs6.6

billion, accounting for 67 per cent of the

UAE exports,” the statement read.

Iran, India, Belgium, Iraq, Hong Kong,

Saudi Arabia, Kuwait, Bahrain, Afghanistan,

Kuwait, and Oman, respectively, topped the

list in terms of re-exports with Dhs11.4 billion.

Timber Design & Technology Middle East, is the first magazine published in the Middle East for buyers of wood and related machinery and products

Published 6 times per year the magazine covers everything from sourcing, design,

sustainability, technology, innovation and other industry issues.

For more information about the advertising rates please contact :

Andy MacGregor | andy@timberdesignandtechnology.com

www.timberdesignandtechnology.com

If you are looking to promote your products and services to buyers in the Middle East region, we give you the perfect opportunity!

tdt_ad_A4.indd 1 05/02/2012 23:12

I March 201220

LOG. WINDOW

‘Partners in Trade’ discusses lanes to Iraq and Afghanistan

DHL hosted a special ‘Partners in Trade’

event on the importance of the Iraq and

Afghanistan trade lane to customers in

the UAE, as part of its continued efforts to

facilitate and capitalize on regional trade

lane relationships and partnerships. The

event, which took place in Dubai, was

hosted by Frank-Uwe Ungerer, Country

Manager for DHL Express in the UAE and

Phil Armatage, Country Manager for DHL

Express Iraq & Afghanistan, with insights

into each market.

With over 50 high profile executives from

the business community, as well as Hadil

Al Moosawy, 3rd Consul for Iraq, and Abdul

Hady Othman, Iraqi Business and Trade

Attache, the event provided an opportunity

to talk about the challenges faced when

shipping to Iraq and Afghanistan. As a

result, the evening’s conversation covered

several broad areas such as customs

regulations and clearance process,

reassuring the company’s business partners

and reinforcing its position as leaders in

express shipping.

“Being the International specialists, we are

always striving to offer our customers even

better services to meet their ever changing

business needs,” said Frank-Uwe Ungerer,

Country Manager for DHL Express in the UAE.

The positive outlook for the region’s

cruise sector is boosting reciprocal tourism

potential in key destinations across the

GCC. The Middle East is recognised as a

key growth market through to 2015 following

major commitments to invest substantial

amounts into new cruise terminals and

associated infrastructure.

According to Reed Travel Exhibitions,

the organisers of Arabian Travel Market,

the expansion of regional facilities and the

associated potential increase in revenue

from tourism will provide a catalyst for further

port development throughout the Gulf.

“Diversification of the tourism product

to capitalise on new market segments,

and significant government investment

in supporting infrastructure, has already

demonstrated real time benefits for Dubai,

which has seen passenger figures quadruple

over the last five years,” said Mark Walsh,

Portfolio Director, Reed Travel Exhibitions.

The future potential of regional cruise

tourism will once again be a highlight at

this year’s Arabian Travel Market which

takes place in Dubai from 30 April - 3

May. A dedicated onsite cruise pavilion

will provide a platform for regional port

operators, tourism service providers and

international cruise lines looking to develop

a well-rounded cruise product - both off

and onshore.

Abu Dhabi also launched a 1,300-visitor

capacity tented cruise terminal at Mina

Zayed in late 2011, ahead of the construction

of a permanent dedicated facility to

accommodate 600,000 passengers by 2030.

Cruise tourism on crest of a development wave

MSC Lirica vessel

KsA reveals over us$1.1 trillion worth of projects in 2012

The Kingdom of Saudi Arabia, which

represents the largest construction market

in the Middle East and North African

(MENA) region, has revealed a total of

over 1,026 projects worth over US$1.102

trillion underway for 2012, according to a

report from CPH World Media, a business

research and intelligence firm.

The report shows that the growth is

sustained by the Saudi government’s

continuous efforts to liberalise the

economy. The report further states that

Saudi Arabia’s large oil revenues have

made it possible for the construction

industry to employ the extra liquidity for

its growth. Also, continuing support and

programs coming from the government

have also played a key role in the

segment’s development. The country’s

construction segment is looking towards

the development of mega city projects

like King Abdullah Economic City and

Knowledge Economic City (KEC).

Eyeing to play a major part in this

forecasted growth, Rubber World

Industries (RWI), the leading manufacturer

of closed-cell rubber insulation ‘Gulf-

O-Flex’ in the Gulf and South East Asia,

and part of the international business

conglomerate, the Shaikhani Group of

Companies, has announced its plans to

position itself as a major provider of world

class high quality rubber based building

materials through the strategic move of

expanding its trading division.

Rizwan Shaikhani, Managing Director, RWI.

March 2012 I 21

P: +971 4804 8100 · E: info@ssi-schaefer.ae · www.ssi-schaefer.ae

Effective warehouse design means short routes for goods and staff. Using containers in conjunction with intelligent conveyor systems speed up and optimise logistics operations. We show you how to become fast, flexible and efficient. Contact us, we will gladly advise you.

Fast beats slow

ad_210x297mm_en_Asia.indd 1 1/19/2012 12:18:36 PM

I March 201222

LOG. WINDOW

New oil terminal inaugurated in Tangier Horizon Terminals Limited (HTL), a wholly

owned subsidiary of Emirates National Oil

Company (ENOC), has inaugurated a new

facility in Tangier, Morocco, with a total

investment value of AED667 million (US$180

million; Euro 140 million). The new ‘Horizon

Tangier Terminals Ltd’ has a strategic

location on the North African coast at the

western entrance to the Strait of Gibraltar

where the Mediterranean Sea meets the

Atlantic Ocean. It is located at the crossing

of two major maritime routes, with the facility

only 15 km from the European Union.

Horizon Tangier Terminal can store

petroleum products including Fuel Oil,

Gasoline, Gasoil with a total capacity of

508,000 cubic metres, and has access

to road tankers and vessels. The terminal

is equipped with two berths of 30,000

DWT to 70,000 DWT in addition to eight

truck loading bays for petroleum products,

rail wagon loading, blend plant and

recirculation systems.

Saeed Abdullah Khoory said: “We are

thankful to the Government of Morocco for

the continued support and encouragement

for the opening of the new facility. Horizon

Tangier Terminal not only highlights the

growing footprint of our storage business

internationally, but is a strong indicator of

the ENOC’s international expansion plans.

The terminal will contribute to the overall

social and economic growth of Morocco,

drive foreign trade and open up new

opportunities for business in the petroleum

sector. ENOC is committed to introducing

global best practices at the terminal.”

Horizon Tangier’s new petroleum

storage terminal has several advantages.

It is uniquely positioned to help address

the shortage in storage facilities in North

Morocco, which in turn can help reduce

the historical costs associated with the

supply of gasoil and motor gasoline that

comes from central Morocco to the north,

and eventually contribute to the growth of

the Northern region. The Tangier terminal

will also provide bunker services as well

as serve the transit market for international

petroleum marketing companies.

Mercator unveils Cargo Revenue Management solution In partnership with USA-based Revenue

Technology Services (RTS), Mercator (the

commercial arm of Emirates Group IT) has

developed a fully integrated Cargo Revenue

Management Solution which will roll-out to

Mercator’s global customer-base in the first

quarter of the year.

The system, currently being implemented

by launch customer Emirates SkyCargo,

results in the Mercator SkyChain product

becoming a fully integrated cargo solution

and will help airlines to optimize costs,

increase operational efficiencies, and

maximize revenues and profitability.

The Cargo Revenue Management

Solution integrates with an airline’s core

booking and operations process. This is a

significant step for the industry, as it does

away with the current practice of integrating

with third party revenue management

products and the large associated costs and

overheads usually involved.

“We selected RTS as a partner because

of the company’s diverse experience

and demonstrated success in the field

of revenue and profit management,”

said Duncan Alexander, Vice President

Mercator. “The demand forecasting,

overbooking, allotment management, and

bid price optimization engines from RTS

revenue management software have been

integrated within SkyChain to provide an

integrated, web-based interface, end-to-end

cargo solution.”

Meanwhile, Mercator has also announced

that Latin America’s second largest airline

holding company, AviancaTaca Holding,

has now gone live with its’ SkyChain cargo

solution. The group’s airlines - TACA,

Aerogal, TAMPA Cargo, and Avianca´s

international cargo operations will now share

cargo information across a single system.

SkyChain will be used to manage

warehouses located across AviancaTaca’s

network for bookings and cargo capacity. In

addition, SkyChain will help optimize cargo

operations and enhance the levels of service

currently offered to AviancaTaca’s customers.

Emirates SkyCargo aircraft

With an investment of US$180m, the new facility has a strategic location

March 2012 I 23

Sea trade and maritime key to sustained economic growth

LOG. WINDOW

Fleet operators urged to adapt new techniques Bus companies, taxi firms and other

commercial vehicle fleet operators can

slash fuel costs and CO2 emissions if

drivers learn eco-friendly techniques in a

new training programme being introduced

in the Middle East, its creators say.

Dubai based Dynamic Technical

Training points to hard acceleration

followed by hard braking, mostly in

traffic conditions, as among the biggest

contributors to fuel wastage, but says

special instruction for drivers can quickly

overcome these problems. Drivers can

maximise the gear box usage by driving at

15km/hr in second gear at 1,000 revs per

minute instead of driving at 15km/hr in first

gear at 1,800 revs per minute.

The automotive service provider,

DTT, will launch the region’s first eco-

friendly training programme designed for

professional drivers of large heavy goods

vehicles at the Commercial Vehicles

Middle East exhibition and conference

taking place in Dubai from 6-8 March.

“Results in Europe illustrate that a

small to medium enterprise operating

100 vehicles saved AED115, 584 in annual

fuel costs after the training, representing

153,216kg less of CO2 emissions released

in the atmosphere. A larger fleet operator,

such as a taxi firm operating 1,200 vehicles,

would save AED4,458,240 per year on

fuel, with an annual reduction in CO2

emissions of 5,909,760kg,” said Nicolas

Gondard, Business Development Manager

of Dynamic Technical Training.

Environmental concerns in the

Middle East were highlighted by a 2010

report from market research specialists

Maplecroft which placed the UAE and

Saudi Arabia alongside Australia, the USA,

Canada, and Netherlands as the six nations

with the worst performance in relation to

CO2 pollution.

Trade and port activity have gathered

renewed interest amid concerns of

economic stagnation in the Eurozone,

geopolitical strife in Iran and Southwest

Asia and piracy in international waters.

While there is no denying that these will

impact the flow of international freight and

commodities in 2012, the GCC is rapidly

emerging as one of the most important

transport and logistics hubs in the world,

the organisers of a marine event explained.

As a percentage of world trade, the

GCC today represents about 3 percent

of imports and 5 percent of exports.

Middle East seaports are expanding

vigorously, in line with this trend. Over

the past few years, a total of US$46.5

billion has been committed to develop

the 35 ports in the region.

There are two major reasons driving this

growth. On the one hand, the favourable

geographic location of the GCC countries

provides them with a strong opportunity

to serve as hubs not only along the

Europe–Asia shipping lanes, but also for

northern and central Africa. On the other

hand, the region’s ongoing economic

diversification has meant the upgrade of

existing infrastructure across all transport

modes. On both these counts, the benefits

accruing to the region are long-term in

nature.

The emergence of India and China

has presented the GCC with substantial

opportunities as hubs. As a result, GCC

ports need to ramp up capacity, not only

to cater to their own increasing needs, but

also to develop a hub strategy. Most of

them are ideally placed as a trade platform

between Asia and the Far East on one

hand and the West, Central Europe, and

Africa on the other. In fact, seaports in the

UAE account for 61 per cent of the GCC

trade volume and this share is expected to

rise with new capacity being added.

The World Ports & Trade Summit is one

such platform, which has been conceived

with the goal of addressing all the key

issues and themes relating to ports and

sea trade besides acting as the leading

platform for exhibiting the latest products

and services within the sector. To highlight

the industry outlook and latest trends in

maritime trade and investment the summit

will have three dedicated forums, featuring

cargo owners, shipping companies,

third-party logistics providers, freight

forwarders, port authorities and business

consultants. The World Ports & Trade

Summit 2012 will be hosted in Abu Dhabi

from April 2-4. The event is organised by

Turret Media and Seatrade.

The region’s first eco-friendly training programme which offers significant cost savings for fleet managers will be showcased at Commercial Vehicles Middle East exhibition

I March 201224

TRENDS

The logistics sector in the GCC has been on a

growth trajectory as the governments continue in

high value investments to improve various modes of

transportation including rail, which has been virtually almost non-

existent in the region.

Top five mega trends in GCC logistics sector

March 2012 I 25

TRENDS

And the logistics in the GCC is also

witnessing all the right mega trends

that are likely to enhance the region’s

prominence as a logistics hub, claims

a recent report titled ‘GCC Logistics

Sector: Top 5 Mega Trends and their

Impact on the Sector’ by global research

firm Frost & Sullivan.

The strategic location of the GCC

should also be noted as the union is the

gateway to a market of over three billion

consumers and over 60 per cent of the

world’s population is within an eight hour

flight. According to a Booz & Company

analysis, logistics represents around 2.3

per cent of the GDP of the GCC countries

(or 4.3 per cent of GDP excluding the

oil and gas sector). Compared to, for

example, the sector’s average six per

cent contribution to GDP in the European

Union, this can be considered low.

However, Booz & Company estimates

that the transportation sector will likely

register approx. a seven percent CAGR,

only slightly surpassing overall GDP

growth. But logistics services, that is,

warehousing, contract logistics, and

freight forwarding, are expected to show

substantially higher annual growth rates of

10 percent or more.

GCC’s major players

The Frost & Sullivan report highlights that

the value of the GCC’s logistics sector is

estimated at around US$35 billion, of which

three major economies, namely, Saudi

Arabia, the United Arab Emirates (UAE)

and Oman account for around 85 per cent

share. Oil & Gas, infrastructure and trading

segments are the leading contributors for

the logistics sector in the region.

In the GCC, the domestic services

segment (inland transportation and

warehousing) of the logistics market

is dominated by local players, while

the international services segment

(freight forwarding and international

transportation by air/ocean) is dominated

by multinational players.

Top mega trends

Analysing the latest trends in the GCC

logistics sector, the report identifies top

five mega trends and their likely impact

on the industry. The list below serves

as a useful tool for companies currently

operating in the region as well as those

international players that have a plan

to launch operations in any of the GCC

countries, which are namely Bahrain,

Kuwait, Oman, Qatar, Saudi Arabia and the

United Arab Emirates.

I. Development of rail transport network

(initially for public transportation and

later to be used for cargo transportation

too), can be considered as the most

important trend happening in the GCC

logistics sector. The region’s largely

traded commodities such as chemicals,

petrochemicals, mineral ores and mining

products, metals and basic materials such

as stone, concrete, and cement used in

construction require to be transported in

bulk quantities, for which, rail is the best

mode of transport. Hence, realisation of this

new transport mode in the region can turn

out to be a landmark for the logistics sector.

II. Focus on development of Free Trade

Zones (FTZ or Free Economic Zones) by

the GCC nations has been a major driver

for their non-oil economic growth, which

has had a profound impact on the logistics

sector. Due to the promotional policies

in this regard, the region has witnessed

a significant proliferation of multinational

organisations setting up their continent

level distribution centres (for air and sea

modes) in the GCC nations, which has

been positively impacting the logistics

services market.

III. Focus on development of domestic

manufacturing industries, spearheaded

by Saudi Arabia is another major trend

in the GCC, which is likely to impact and

drive the logistics sector. Development of

manufacturing activities would lead to the

emergence of allied industrial activities,

which would evolve into a complete

supply chain entity in the country over the

long term.

IV. Promoting the development of oil

related (petrochemicals) manufacturing

clusters as well as non-oil clusters (such

as electronics, food, pharmaceuticals and

automotive) would result in a significant

demand for logistics services. Such

development would result in a sustainable

market for logistics services.

V. Development of cargo specific sea

ports (spearheaded by the UAE with

Jebel Ali port) has been another mega

trend that has resulted in making the GCC

the logistics hub for Europe-Asia trade

activities. Jebel Ali Port is DP World’s

flagship port, in addition to being the

world’s largest man-made harbour and the

largest container port between Rotterdam

and Singapore.

Located 35 km to the southwest of

Dubai, the modern port employs state-

of-the-art equipment, including the

world’s largest gantry cranes capable

of lifting four 20 foot containers or two

40 foot containers simultaneously- a

total capacity of 80 tonnes, twice that of

traditional cranes. These improvements

will enable the port to cater to the new

generation of mega-ships (14,000 + TEU).

Last December, DP World has announced

plans to expand the port by creating

The value of the GCC’s logistics sector is estimated at around US$35 billion, of which three major economies, namely, Saudi Arabia, the United Arab Emirates (UAE) and Oman account for around 85 per cent share. Oil & Gas, Infrastructure and Trading segments are the leading contributors for the logistics sector in the region

I March 201226

TRENDS

an additional four million TEU capacity,

resulting in total capacity at Jebel Ali

reaching 19 million TEU by 2014.

Best practices for the sector

I. Logistics service providers in the region

should actively examine the potential

emerging from each of the mega trends, for

example, develop customised services for

free trade zone based customer companies.

II. Logistics service providers should also

actively pursue opportunities to provide

integrated supply chain solutions to

encourage/help nascent manufacturing

bases in the region to evolve further into full-

fledged industrial clusters. This would also

gradually reduce the overall logistics sector’s

heavy reliance on oil industry activities.

III. Direct/Active participation of Logistics

Service Providers (LSP) in development of

rail transport mode (for cargo segment), if

needed through investment in development

of infrastructure is recommended since

it is likely to reward them with continued

benefits over the long run, as witnessed in

case of ports by DP World, PSA and APM

Terminals across the world.

IV. Saudi Arabia, the UAE and Oman are likely

to continue contributing a lion’s share of the

logistics sector’s activities and revenues;

hence LSPs should build strong service

networks covering these countries, both by

inter-connecting them as well as building

linkages for international logistics services.

Strategic conclusion

The logistics sector in the GCC is on a

definite growth trajectory and is witnessing

all the right mega trends that are likely

to enhance the region’s prominence as

a logistics hub. While development of

exclusive cargo ports and FTZs is enhancing

the region’s potential for international

trade related logistics, development of rail

transport mode for cargo and promotion

of domestic manufacturing activities would

result in growth of the integrated supply

chain services business.

LSPs on their part should actively

encourage/support industrial groups

trying to build manufacturing setups in the

region by providing complete (if needed,

customised) logistics services. LSPs should

also consider taking up active role in the

development of logistics infrastructure

(especially investing in transport mode for

cargo) for high potential returns in the long

run. LSPs should also build strong service

networks covering the above said three

major economies in the GCC for linking

them internally and externally.

In the GCC, the domestic services segment (inland transportation and warehousing) of the logistics market is dominated by local players, while the international services segment (freight forwarding and international transportation by air/ocean) is dominated by multinational players

Credits: The bulk of this article was contributed by

Transportation and Logistics Practice - Middle East,

North Africa & South Asia, Frost & Sullivan

The 3rd InternationalTRANSPORTATION, MATERIALS HANDLING, WAREHOUSING & LOGISTICSExhibition & Conference

www.sauditranstec.com

11-13 November 2012Dhahran International Exhibition Center,

Dammam, Kingdom of Saudi Arabia

Working Towards the Integration& Implementation ofEffective Logistics& Transportation Systems

Organised by

Media Partner

I March 201228

OVERVIEW

Booming logistics sector in TurkeyAt a point where two continents meetWith a fast growing economy, Turkey is taking advantage of its strategic location between the West and East by acting as a transport corridor to move goods as well as people. Also surrounded by seas in the north, west and south, the government is pursuing ambitious plans to improve all port facilities.

March 2012 I 29

OVERVIEW

The International Monetary Fund (IMF)

defines the economy of Turkey as an

emerging market. The CIA classifies it as a

developed country and other economists

see Turkey as a newly industrialised

country. Whatever the classification is,

the country between two continents

has a rapidly growing private sector and

the economy is doing well despite the

ongoing crisis in other European countries.

According to OECD, “Turkey was directly

affected by the global crisis but showed

considerable resilience since then. The

strong macroeconomic policy framework

provided support. With the recovery under

way, a golden opportunity for structural

reforms arises from the sharp drop in

capital costs.”

With a GDP of US$736 billion (2010

- Current Prices) and a per capita GDP

of US$10,079 (2010), Turkey is a leading

producer and exporter of textiles, ships,

automobiles, transportation equipment,

construction materials, agricultural products,

consumer electronics and home appliances.

In 2010, exports value reached US$114

billion and imports value was at US$185

billion. The nation earned almost US$21

billion from the tourism sector, with around

28.5 million people having visited Turkey in

2010. The country also registered a Foreign

Direct Investment (FDI) of US$9.1 billion.

Unrealised growth potential

The transportation sector is well advanced.

The government has launched several

projects to establish high speed rail links

between major cities and parts of the

country. The share of the logistics sector

in Turkey’s GDP is estimated between 8-12

per cent. Thus, the size of the sector can

be estimated as being around US$65-95

billion in 2008, remarks the “Transportation

and Logistics Industry Report - January

2010” by Deloitte. The size of the Turkish

transportation and logistics industry is

around US$59 billion, while the share of

the logistics service supplier market is

US$22 billion.

Bosphorus Bridge, Istanbul

I March 201230

OVERVIEW

The industry has tripled since 2002 while

the share of logistics service suppliers has

increased by only seven per cent, which

signals an unrealised growth potential for

logistics service companies. The industry has

grown by 20 per cent on average in the last

five years and the forecasted size is US$120

billion in 2015.

According to estimates, there are 2,000

customs clearance companies, 1,200

international road transport companies,

1,000 international maritime companies,

250 freight-forwarders and 200 bonded

warehouses in Turkey which offer logistics

services to international trade firms.

Largest fleet in Europe

Investments in the transportation system

are concentrated on land transportation

infrastructure, and the country has

developed one of the largest land

transportation fleets in Europe, according

to the notes by the Investment Support and

Promotion Agency working under the Prime

Ministry of Turkey. The network of highways

has been developed significantly and the

highway length now stands at 64,865 km, of

which 2,080 km are motorways.

Road transport is the major mode of

freight and passenger transportation in

Turkey. At present 95 per cent of passengers

and 90 per cent of goods are delivered

by highway transport. The network of

highways has developed significantly and its

importance has increased. The government

plans to further modernise existing roads and

construct new roads at a cost of TL37 billion

(US$1=TL1.8 as of March 2012).

Turkey is also involved in the construction

of the Black Sea Ring Highway, which

is planned to have 7,140 km of length

and to pass through 12 BSEC countries.

Furthermore, to mitigate road congestion in

Istanbul, the country’s financial capital and

most populous city, the construction of a third

Bosphorus Bridge is being considered. The

two existing bridges are scheduled to be

privatised, highlights the Deloitte report.

Benefits of marine transport

Being surrounded by seas on three sides

with the Black Sea, Aegean Sea and the

Mediterranean as well as the straits of

Dardanelles and the Bosphorus, the country

has a competitive advantage in maritime

transport. The length of the coastal borders

is 8,333 km.

Over half of Turkey’s exports and imports

are carried via the seas, with respective

shares of 50.7 per cent and 53.2 per cent in

total. Maritime transportation is followed by

road transportation, with a share of 40.3 per

cent of exports and 22.9 per cent of imports

in 2010. Meanwhile, air transportation comes

third for both exports and imports.

Rail & air connections

Excluding the ongoing projects, the length

of the railways exceeds 11,000 km run by

a state directorate. Rail has long been an

option to transport goods and people across

the country and the government has initiated

modernisation projects to improve services

as well as the infrastructure. The allocated

budget for railway development reaches

US$23.5 billion, according to sources.

Back in 2005, the World Bank approved

a loan of EUR143.7 million to finance the first

phase of the Rail Restructuring Project in

Turkey. According to sources, the project is

Over half of Turkey’s exports and imports are carried via the seas, with respective shares of 50.7 per cent and 53.2 per cent in total. Maritime transportation is followed by road transportation, with a share of 40.3 per cent of exports and 22.9 per cent of imports in 2010. Meanwhile, air transportation comes third for both exports and imports.

March 2012 I 31

OVERVIEW

an Adaptable Program Lending (APL) with a

total cost of about US$450 million. Among

the objectives of the project is “to improve the

financial viability, productivity, and effectiveness

of railway operations, which shall be achieved

through separation of infrastructure from

operations, increasing accountability and

competitiveness in rail operations, restructuring

and rationalisation of passenger services, staff

adjustment, as well as institutionalisation and

privatisation of non-core activities.”

When it comes to air transport, Turkey has

45 airports, 13 of which serve international

flights. In 2010, there were more than 100

million airline passengers in Turkey. Turkish

Rail has long been an option to transport goods and people across the country and the government has initiated modernisation projects to improve services as well as the infrastructure. The allocated budget for railway development reaches US$23.5 billion, according to sources. Airlines is one of the fastest growing airlines

in Europe and the leader in traffic and

capacity growth in Europe (AEA, 2009). With

deregulation and liberalisation measures

introduced, several private airline companies

have entered the market that resulted in a

dramatic growth in air transport sector. Among

the major airports that rank high in international

rankings are Ataturk Airport (Istanbul),

Esenboga (Ankara), Adnan Menderes (Izmir)

and Antalya International Airport.

Outlook and trends

The importance of logistics is well understood

in Turkey and the government aims to

introduce more public-private partnership

(PPP) models for infrastructure investments.

The industry has grown by 20 per cent

annually on average in the last five years and

its forecasted size is US$120 billion by 2015. It

should be remembered that the value of the

logistics sector is directly related to the size of

Turkey’s exports and imports and with foreign

trade resuming its growth, promising growth

potential awaits logistics service suppliers.

Combined transportation will also gain more

importance in the future.

In freight transport, priority is given to

rail and maritime transport, while ports will

become logistics centers that facilitate

combined transport. Experts underline that

logistic services are new in Turkey but it is

growing fast. Standing at the crossroads

of major trade routes makes Turkey an

important candidate to become a major

logistics hub in the near future.

6

infrastructure, vehicles, environmental standards, the development of logistic networks and the improvement of foreign trade policies. The current transportation network in Turkey is behind EU-27 standards mainly in terms of the density of the highways, motorways and railways. The State Planning Organization has underlined this fact in their 2010 Annual Programme, which describes steps for the development of the transportation industry. Further details of the Development Programme, signalling the potential for future growth, are provided at the back of this report. Turkish logistic companies mainly serve the sectors in which most foreign trade is concentrated: these include textiles/garments, automotive, FMCG, retail and food, petrochemicals, machinery production and the construction industry. The share of construction and construction equipment has significantly increased since 2002. According to the Logistics Performance Index logistics performance. LPI is based on a survey of operators on the ground worldwide, providing feedback on the logistics friendliness of the countries in which they operate and those with which they trade. Economies are divided according to 2008 GNI per capita, calculated using the World Bank Atlas method. Turkey belongs to upper middle income group having a GNI per capita between US$ 3,856 - US$ 11,905. Turkey ranks fourth among 24 upper middle income countries. The LPIs of the top ten upper middle income countries from the study are exhibited below.

Figure 3 LPI of Top 10 Upper Middle Income Countries

According to TUIK, 1.1 million people are employed in the transportation-communication and storage services in Turkey as of September 2009. The share of the transportation and logistics sector in Turkeyestimated between 8-12%.

11 The size of Turkish transportation & logistics industry is determined as US$ 59

billion, while the share of the logistics service supplier market (Third Party Logistics) is estimated as US$ 22

logistics service suppliers has only increased by 7% which signals an unrealized growth potential.12

Freight transportation has been increasing continuously as seen in the following table.

11

IGEME (Export Promotion Center of Turkey), 2009 12

2.6 2.7 2.8 2.9 3 3.1 3.2 3.3 3.4 3.5 3.6

EstoniaArgentina

LatviaPoland

Czech RepublicHungary

TurkeyChile

MalaysiaSouth Africa

LPI of Top 10 Upper Middle Income Countries

Source: World Bank

6

infrastructure, vehicles, environmental standards, the development of logistic networks and the improvement of foreign trade policies. The current transportation network in Turkey is behind EU-27 standards mainly in terms of the density of the highways, motorways and railways. The State Planning Organization has underlined this fact in their 2010 Annual Programme, which describes steps for the development of the transportation industry. Further details of the Development Programme, signalling the potential for future growth, are provided at the back of this report. Turkish logistic companies mainly serve the sectors in which most foreign trade is concentrated: these include textiles/garments, automotive, FMCG, retail and food, petrochemicals, machinery production and the construction industry. The share of construction and construction equipment has significantly increased since 2002. According to the Logistics Performance Index logistics performance. LPI is based on a survey of operators on the ground worldwide, providing feedback on the logistics friendliness of the countries in which they operate and those with which they trade. Economies are divided according to 2008 GNI per capita, calculated using the World Bank Atlas method. Turkey belongs to upper middle income group having a GNI per capita between US$ 3,856 - US$ 11,905. Turkey ranks fourth among 24 upper middle income countries. The LPIs of the top ten upper middle income countries from the study are exhibited below.

Figure 3 LPI of Top 10 Upper Middle Income Countries

According to TUIK, 1.1 million people are employed in the transportation-communication and storage services in Turkey as of September 2009. The share of the transportation and logistics sector in Turkeyestimated between 8-12%.11 The size of Turkish transportation & logistics industry is determined as US$ 59 billion, while the share of the logistics service supplier market (Third Party Logistics) is estimated as US$ 22

logistics service suppliers has only increased by 7% which signals an unrealized growth potential.12 Freight transportation has been increasing continuously as seen in the following table.

11 IGEME (Export Promotion Center of Turkey), 2009 12

2.6 2.7 2.8 2.9 3 3.1 3.2 3.3 3.4 3.5 3.6

EstoniaArgentina

LatviaPoland

Czech RepublicHungary

TurkeyChile

MalaysiaSouth Africa

LPI of Top 10 Upper Middle Income Countries

Source: World Bank

Source: World Bank; Deloitte Industry Report

Logistics Performance Index of Top 10 Upper Middle Income Countries

I March 201232

PREVIEW

LOG. LEO Awards 2012 Now accepting nominations to recognise the bestThe annual LOG. LEO Awards ceremony

is set to take place next month in Dubai,

UAE. As ‘LEO’ stands for Logistics,

Excellence, and Optimisation, the

industry’s outstanding achievers will be

once again recognised at this ceremony.

Organised by LOG. Middle East, the

region’s premier publication for the

logistics and supply chain industry,

the event will award achievers across

five main categories, selected by an

independent panel of experts.

This year’s event will take place on

Thursday 19 April and like previous editions,

will feature a panel composed of experts

who have devoted years to transportation,

logistics and supply chain industries.

Currently, the organising committee is in

the process of inviting and selecting the

panel members. The members’ full names

and short biographies will be published on

our website as well as in the next edition of

LOG. Middle East.

Nomination guidelines

The LOG. LEO Awards 2012 nomination

form is available on our website and it

can be submitted to the committee online

or by fax until the last day of submission.

Being an industry event, the organising

committee has also announced certain

guidelines for the nomination process.

The revised rules aim to ensure a smooth

and transparent process through which

the best in the industry will be recognised.

The below rules will guide anyone

intending to nominate an executive:

• The logistics community can nominate

any executive for any of the categories

within the defined period as long as they

believe that the nominee deserves to be

awarded in one of the categories.

• One individual can only nominate

one executive.

• The panel members themselves cannot

be nominated.

• The nomination form should be fully

completed and submitted to LOG. LEO

Awards Committee by post, fax, email

or online. Incomplete forms cannot be

considered and the contact details of

the person submitting the nomination

must be accurate for any further

verification or clarification by either

March 2012 I 33

PREVIEW

the committee or panel.

• Intense competition is expected and the

number of nominations increases annually.

So, the person nominating an executive

should be able to support his/her

arguments in favor of the nominee. S/he

should clearly explain why the nominee

deserves to be awarded in that particular

category and list down accomplishments

relevant to the logistics industry. Specific

information such as a track record,

regular promotion, case studies will help

the panel understand and evaluate the

nominee better.

• The nomination text should be brief,

to the point, objective, and 200 to 500

words maximum.

• Email attachments to support the

nomination are acceptable.

• The votes are verified by an

independent monitoring panel composed

of highly respected and experienced

industry executives.

Award categories

The LOG. LEO Awards ceremony will once

again celebrate industrial excellence. The

winners of the first four categories listed

below will be decided by online voting and

the last award of Lifetime Achievement will

be solely selected by the jury.

• Young Achiever of the Year

• Supply Chain Manager of the Year

• Innovator of the Year

• Sustainability Champion of the Year

• Lifetime Achievement Award

Nomination criteria

Young Achiever of the Year:

• Nominees should be under 35 years of

age as at 30 March 2012

• Known personal achievements in the

industry

• Contributions to the Transport and

Logistics industry

• Demonstration of leadership and

organisational skills

• Proven project implementation skills

• Creativity and professionalism

Supply Chain Manager of the Year:

• Lasting and high value innovation in supply

chain operations

• Outstanding performance with regard to

people, environment and corporate governance

• Restructured supply chain processes

for cost savings, gains in efficiency and

improved customer service

• Applied an innovative technology that

resulted in cost savings and efficiency gains

and improved customer service

Innovator of the Year:

• Expansive thinking in supply chain management

• “Outside the box” thinking when solving

challenges or driving value through the

supply chain

• Coordinated business functions across the

industry and developed beneficial ways to

strengthen supply chain relationships

• Delivered success through leading and

original supply chain methods

Sustainability Champion of the Year:

• Contribution to environmental initiatives

• Supported research and analysis of

transport-related environmental issues

• Initiated or implemented solutions that

help reduce any negative effects of the

industry on our environment

• Out-performaned national or global

environmental guidelines

I March 201234

• Implemented substantial measures to improve

and develop their environmental records

• Recognised as making sincere

efforts to fully integrate environmental

awareness into all areas of business

strategy and operations

• Habit of directing business partners

towards better environmental standards

Lifetime Achievement Award:

• Actively involved in the supply chain and

logistics industry for at least 20 years

• Lifetime dedication and commitment

to the growth of the logistics and supply

chain industry

• Significant contribution for excellence in

logistics and achievements in improving the

overall logistics management processes

Full day event at a five star venue

The 2012 ceremony will take place at a

high class venue in Dubai, UAE. The five

star Ibn Battuta Gate Hotel, close to the

‘New Dubai’, will host the glitzy full day

event. There will be insightful seminars

in the morning by leading international

companies with a networking break

which will allow the guests to interact and

exchange business cards.

The coffee break will be followed by

the second batch of seminars where the

experts will again share their expertise and

experiences with the delegates. The LOG.

LEO Awards ceremony is scheduled to start

at 1pm and will take around an hour during

which the awards will meet their respective

owners. The sumptuous buffet lunch is to

be followed by the afternoon session of

seminars. The event will come to a close at

approximately by 5pm.

The Ibn Battuta Gate Hotel

Mövenpick Hotels & Resorts, an

international upscale hotel management

company with over 14,000 employees,

is represented in 25 countries with 71

hotels and resorts currently in operation.

A further 30 properties are planned or

already under construction in Ankara,

(Turkey), Dubai (four projects); Abu Dhabi

(three projects), Shanghai (China), and

Dharamshala (India).

Focusing on expansion in its core

markets of Europe, Africa, the Middle East

and Asia, Mövenpick Hotels & Resorts

specialises in business and conference

hotels, as well as holiday resorts, all

reflecting a sense of place and respect for

their local communities. Of Swiss heritage

and headquartered in Zurich, Mövenpick

Hotels & Resorts delivers premium service,

culinary enjoyment and sustainable

environments - all with a personal touch.

Due to the high quality and

comprehensive services on offer by a

professional staff, Ibn Battuta Gate Hotel

was chosen as the venue once again.

The hotel’s proximity to Jebel Ali Free

Zone as well as other free zones like

Dubai Media City and Dubai Internet

City which host many companies in

transportation and logistics has also

played a role in this selection.

Hurry to nominate

Everyone in the industry is invited to

submit online nominations for the award

categories. Your nominations will ultimately

decide the winners at this year’s ceremony.

Please do not hesitate to contact us for any

further inquiries:

E: logleo@gutenberg-dubai.ae

T: +971 4 4334360

PREVIEW

March 2012 I 35

LOGISTICS EXCELLENCE OPTIMISATION

INVITATION TO NOMINATELOG.Middle East, the region’s premier publication for the logistics and supply chain

industry, has initiated the LOG.LEO Awards.

�e jury and logistics community – by web vote – are honouring outstanding individuals with the LOG.LEO Awards in the following categories:

Young Achiever of the YearSupply Chain Manager of the Year

Innovator of the YearSustainability Champion of the Year

Lifetime Achievement Award

LOG. Middle East once again invites you to LOG.LEO Awards 2012; a time to celebrate the best of the supply chain and logistics industry.

We kindly ask you to submit your nominations for above-mentioned categories no later

than 5 April 2012 as we name this year’s winners.

Date: 19 April 2012Venue: Ibn Battuta Gate Hotel, Dubai

Dress: Formal / National dress

For more information, please contact:logleo@gutenberg-dubai.com

Tel: +971 4 4334360

Looking forward to seeing you there!

AWARDS CEREMONY DETAILS:

I March 201236

REVIEW

Showcasing new technologies in railThere is a definite need for the creation of robust and strong legislation, rail regulations and national standards to enable the railway industry to be effectively governed and monitored from the start to avoid expensive mistakes later, argued experts at a recent rail conference in Dubai, UAE.The governments of the Gulf Cooperation

Council (GCC) have been smartly investing

in mega infrastructure projects to boost

their economies and at the same time

ease the movement of goods and people

as in, out and through their territories.

The Gulf’s major cities are in an intense

competition with each other to create

regional and international ‘logistics hubs’

and as statistics show, Dubai, Abu Dhabi

(UAE) and Doha (Qatar) are considered to

be ahead of the game when it comes to air

and sea port facilities.

In the last few years rail has also

climbed up in the list of investments with a

priority. The Arab world’s largest economy,

Saudi Arabia, boasted the only rail system

in the GCC for many years which was

actually built to transport goods. Just

recently, a new rail system was launched

to transport visitors between holy sites in

the Kingdom. Of course, the emirate of

Dubai has built and opened the region’s

first passenger metro and two lines are

currently operational. The Dubai Metro is

also the world’s longest driverless metro

system in the world.

The GCC governments have announced

ambitious railway projects which include the

Etihad railway that is to create a network

between all GCC countries as well as to

Europe. While over $250 billion worth of

investment is being planned in the railways

sector in the region, the GCC is leading

the way with expected rail project spend of

around $245 billion, according to the MEED

Railway Report 2011. The Gulf’s visionary

leaders are well aware of the need to create

sustainable transportation networks both for

goods and people offering the choices of air,

sea, and road as well as rail freight.

Middle East Rail

At a time when international companies are

keeping a close eye on the governments’

plans to establish rail networks, a high

level event in Dubai has brought industry

experts and product and service providers

under one roof to address the challenges

and opportunities in building the region’s

rail networks.

March 2012 I 37

REVIEW

“The key success factor of the railway industry lies in effective railway legislation, regulations and standards also the promotion and acceptance of the railway industry as a viable, practical, and cost-effective mode of transport for both freight and passengers. Social benefits of the railway industry must be realised (e.g. employment opportunities, encouraging local businesses, and technology transfer to the UAE)” - H.E. Abdulla Al Katheeri, Executive Director, Land Transport Sector, NTA

The opening of the Middle East Rail 2012 exhibition and conference

The Middle East Rail 2012 exhibition and

conference, organised by terrapinn, was

opened by H.E. Dr. Nasser Saif Al Mansoori,

Director General of the National Transport

Authority UAE. Dr. Al Mansoori stated that he

is proud of NTA’s dedication to the railway

industry and its collaborative working with

local and international railway organisations

and such conferences help them keep

the spotlight on the railway industry and

promote its use in the UAE and the region.

Over the two days of the conference,

which took place from 31 January-1 February,

underlying issues affecting the creation

and nurturing of the railway industry in the

UAE and the region were discussed by

speakers from various countries including

the UK, Germany, France, Spain, Japan,

China, Holland, Sweden, USA, Turkey,

UAE and Qatar. The experts delivered

presentations on their respective countries’

railway systems and future plans to improve.

The suppliers also discussed the railway

technology available in the market place

such as the European Traffic Management

System (ERTMS), European Train Control

System (ETCS), high speed technology

such as the Maglev, Super Conductivity

Maglev, bi-modal trains using diesel as

well as electric catenary systems and train

telecommunication systems.

The experts and practitioners involved in

the railway debate highlighted that the key

lessons that must be learned in the UAE and

the region is the ‘definite need for the creation

of robust and strong legislation, rail regulations

and national standards to enable the railway

industry to be effectively governed and

monitored from the start to avoid expensive

mistakes later’. Another key lesson was the

need to bolster investor confidence in law

and to engender certainty, predictability and

confidence in the emerging railway industry.

Presiding over the conference awards

ceremony, another expert H.E. Abdulla Al

Katheeri, Executive Director, Land Transport

Sector, NTA said, “The key success factor of

the railway industry lies in effective railway

legislation, regulations and standards also

the promotion and acceptance of the railway

industry as a viable, practical, and cost-

effective mode of transport for both freight

and passengers. Social benefits of the railway

industry must be realised (e.g. employment

opportunities, encouraging local businesses,

and technology transfer to the UAE).”

Global ICT provider - Huawei

Huawei, a global information and

communication technology (ICT) solutions

provider, showcased its portfolio of railway

solutions at the event. A significant focus

for Huawei Enterprise in the next few years

is to address the railway industry’s need for

security and reliability to be at the forefront of

this major investment.

The company’s range of communications

solutions, including GSM-R, a reliable

and secure communication system

developed specially for railways

application development; Datacom,

transmission networks; high-speed railway

communications (HRC) and intelligent video

surveillance solutions are critical to the

construction and operation of modern railway

infrastructure. GSM-R and HRC projects such

as the Maglev high-speed train, China, the

TransTeleCom DWDM network, Russia, the

LTE partnership with ADIF in Spain, and the

video surveillance deployment with Turkish

Railways, are among Huawei’s major projects

in the railway sector.

The lesson that must be learned in the UAE and the region is the ‘definite need for the creation of robust and strong legislation, rail regulations and national standards to enable the railway industry to be effectively governed and monitored from the start to avoid expensive mistakes later’.

I March 201238

REVIEW

Huawei is well established in the region

providing communications networks to

top telecom operators including Etisalat in

the UAE. Already known for establishing a

DWDM network with du (telecom operator)

for the Dubai Metro that now links its 18

stations, Huawei understands conditions in

the region and the construction challenges

customers face from the environment and

varied terrain.

The LOG. Middle East team caught

up with Rabii Ouadi, Head of Business

Development MENA, Railways Telecom

Solutions following a panel efficient at the

event to find out more about the innovative

solutions Huawei offers to the rail sector:

“To start with, Huawei offers end-to-end

information communications technology

solutions in cloud computing, data centers,

campus networks, video conferencing,

unified communications, IP contact centers,

optical transmission, and wireless networks.

Our company’s capabilities extend across

vertical industries including government,

transportation, power, finance, oil & gas,

smart cities and more and our products

and services ensure that an organisation’s

ICT infrastructure and networks are highly

secure, scalable and reliable.”

Among the major products of Huawei

for the rail sector is the GSM-R, which is

basically a telecommunications system for

the railway sector – operators, employees

and staff. GSM-R is used for signaling and

data transmission such as speed control,

guidance, and interlocking systems.

“I shall underline that this type of

data is not just regular information. It is

highly sensitive and critical because if the

interlocking system does not work properly

and the vital information is not delivered

between the train and control center in

an efficient and safe manner, costly rail

accidents may happen. High availability

(99.9%) is also another factor here. There

cannot be any outage, blackout or loss of

signal. Can we imagine a train being out of

control?” explained Mr. Ouadi.

The GSM-R is not actually something new.

The system has been in the market for some

time and specified by European standards

since early 2000. But it is considered

brand new in the Middle East as there is no

sophisticated rail system yet. “Etihad Rail

has been very smart from the beginning

and selected GSM-R as the standard

communication system for its network.

We are happy to share our expertise in

establishing this system,” added the business

development manager.

GSM-R comes with the transmission

network which includes antennas placed

along the railway tracks. To transmit data

between the trains and central operations

room through antennas, fiber optic,

synchronised data hierarchy (SDH) or

datacom systems can be utilised.

“Two important factors which are

sand and dust and humidity need to

be considered in this region. Outdoor

equipment such as antennas are designed in

a way to withstand the extreme conditions in

a desert climate. They are actually the same

equipment we supply to telecom operators

such as Etisalat or du,” shared Mr. Ouadi.

“We have more than 10 years of

experience in the Middle East and we

understand our customers and their unique

requirements. This gives us advantage over

other competitors. Furthermore, we start to

see lots of activity in the rail sector. GSM-R is

already deployed both in Saudi Arabia and

the UAE. Since the GSM-R is mandatory in

the UAE, other countries as part of the Etihad

Rail will also have to embrace the same

technology to be able to communicate with

each other throughout the network that will

cover the entire GCC,” concluded Mr. Ouadi.

Setting standards of excellence

The rail event also featured an awards

ceremony. The Middle East Rail Awards

ceremony recognised and celebrated

companies and individuals who have

demonstrated an ability to succeed and set

standards of excellence. Nominees were

selected by an independent judging panel of

international and regional industry specialists.

“Nominations to this year’s awards truly

reflected the continued drive, development

and growth of the region’s rail industry.

We celebrated with the people who have

created and shaped this dynamic and

exciting industry,” said Laura Parker, GM of

Middle East Rail at terrapinn.

H. E. Eng. Abdulla Salem Al Katheeri,

Executive Director of the National Transport

Authority presented eight awards. H. E.

Mattar Al Tayer, Chairman of the Board

and Executive Director of the Roads and

Transport Authority (RTA), was awarded

Rail Visionary of the Year, recognising His

Excellency’s uncompromising commitment to

the development of the urban rail sector.

The Road and Transport Authority

scooped ‘Rail Project of the Year’ for

the Dubai Metro - Red and Green Lines.

‘Best Rail Operator’ was won by Serco

Middle East. Voestalpine were rewarded

for their leading innovative technologies

that continually enhance rail projects and

passenger experience and were awarded

‘Most Innovative Use of Technology’.

‘Best Communications Provider to the Rail

Industry’ was won by Kapsch CarrierCom

with Mr Selim Bouri, Sales Director Railways

MENA and Turkey picking up the award.

‘Special Merit Award for Commitment to the

Environment’ was presented to Adnan Al

Hammadi, CEO of the Roads and Transport

Authority (RTA), for the Dubai Metro, RTA’s

commitment to reducing the day-to-day

carbon footprint and their innovative plans

for developing a future long-term sustainable

environmental benefit.

Thales won ‘Best Service Provider to the Rail

Industry’. ‘Special Recognition for Outstanding

Contribution to the Rail Industry’ was won

this year by Bassam Mansour, Land Transport

Sector, National Transport Authority UAE for his

continual drive to go beyond the call of duty to

deliver outstanding results on a rail project.

While over $250 billion worth of investment is being planned in the railways sector in the region, the GCC is leading the way with expected rail project spend of around $245 billion

March 2012 I 39

I March 201240

TECHNOLOGY

Game-changing capabilities of cloud computingCost benefits, improved service delivery, and more agile resource deployment are driving the adoption of private clouds in the Middle East, reveals a recent study by International Data Corporation (IDC).While several organisations in the region

have virtualised a significant part of their

infrastructure, the market intelligence

and advisory firm for the information

technology and telecommunications

markets, IDC, has pointed out that the

majority have not yet truly embraced cloud

models. Four technology game changers

are particularly noted, which are cloud,

mobile, social, and analytics and these are

sustaining the growth and innovation of

the region’s ICT industry in the midst of a

“once every 20–25 years” shift to a new

technology platform.

According to Jyoti Lalchandani, vice

president and managing director of IDC

Middle East, Africa, and Turkey, CIOs in the

Middle East are channelling investments

towards more strategic IT projects,

particularly consolidation, virtualisation, and

automation, taking advantage of technologies

and strategies that deliver the most significant

benefits to their organisations.

“Private cloud adoption, in particular,

has been gaining widespread attention in

the region, driven by the impact of cloud

technology on cost, efficiency and more

agile resource deployment. The gradual

transition towards the cloud will certainly

have a significant impact in the growth of

the region’s IT expenditure, as organisations

take advantage of new technology

platforms to enhance the business value of

their IT investments.”

Implications of ‘big data’

The rapid adoption of mobile devices,

various enterprise applications and social

media has largely contributed to the

unprecedented growth rate of enterprise

data, both structured and unstructured.

Experts highlight that unstructured

March 2012 I 41

TECHNOLOGY

data, in particular, has been growing

exponentially, requiring more specialised

data management tools to transform it into

actionable information.

The IT managers now face the challenge

of effectively grappling with the implications

of big data but still need to manage various

data types and sources and harness the full

potential of big data in driving business.

“We now live in a data-intensive society

as access to various types of information is

increasingly becoming important to the day-

to-day affairs of enterprises and individuals.

The growth rate of enterprise data has

accordingly reached unprecedented levels,

creating a much greater demand for more

sophisticated and specialised tools for data

management and analytics technologies

that generate insight from the data,”

underlines Mr. Lalchandani.

According to Kirk Campbell, President

and CEO - IDC, “The ICT industry now plays

a very important role in supporting the

growth of enterprises, particularly in light of

evolving challenges being faced by global

markets. Consequently, CIOs now have

greater responsibility as they make bold

investment decisions that aim to ultimately

drive business performance.”

Positive outlook for IT

Despite the ongoing economic and social

challenges in the region, the Middle East

IT market is set for another year of growth

in 2012 as the recovery from the global

economic crisis of 2008-2009 gathers

pace, according to figures released by IDC.

The figures show that IT spending in

the Middle East remains vibrant and is

set to record double-digit growth in 2012,

with the market expanding to a value of

$27.5bn. The recovery began strongly in

2010, with IT spending increasing 12.8 per

cent year on year to reach $22.6 billion,

although the research firm anticipates

much slower growth of around 6.8 per cent

for 2011 as the socio-political turbulence

that characterised much of the year has

hampered spending across the region’s

main flashpoints.

The relatively strong growth expected for

2012 will come as many of the projects delayed

due to the events of the Arab Spring are revisited

and as new initiatives are launched, both in the

public and private sector.

“The direction of the market is being

dictated by a gradual shift in focus to

technologies that drive greater business

value. Initiatives that support cost reduction

and thus realise faster ROI, such as

virtualisation and datacenter consolidation, are

being encouraged, and often the idea is to re-

invest the savings achieved into technologies

that directly and effectively support business

agility, such as business intelligence, mobility,

communication, and collaboration.”

“Since the global economic downturn

first reared its head in 2008, the world’s

leading ICT vendors have become much

more attentive to the way in which they

serve the emerging markets of the Middle

East,” says Mr. Campbell.

Exclusive CIO Summit

IDC discussed critical issues concerning

cloud computing in the region, particularly

its impact on business and the pitfalls that

should be avoided, during the two-day

Middle East CIO Summit 2012, held in

Fujairah, UAE from 20-21 February.

The summit examined the strategies

that the business-savvy CIO should be

considering moving forward and explained

how he/she can demonstrate greater value

to the business, thereby increasing the

profile of IT in the boardroom. The bespoke

event addressed the unique needs of the

local market, with sessions and discussions.

IDC’s newly-released figures show that IT spending in the Middle East remains vibrant and is set to record double-digit growth in 2012, with the market expanding to a value of $27.5bn

Idc’s Top 10 predictions for the ME, africa and Turkey IT markets in 20121. IT markets will recover from the Arab Spring but face global economic headwinds.

2. “Populist” governments will seek to accelerate e-service delivery to citizens.

3. Virtualisation will move from “test” to “production” and will attain must-have status.

4. Cloud will receive more serious attention, but widespread adoption will be inhibited by insufficient

infrastructure and skills.

5. NFC and LTE will drive the next level of mobile technology adoption.

6. Media tablets and enterprise mobile apps will transform employee productivity.

7. Unified communications and collaboration technologies such as video-conferencing and tele-

presence will take off.

8. Line-of-business demand will make analytics more pervasive.

9. “Big brother” initiatives will intensify in the Middle East as information security gains in importance.

10. Telcos will continue to extend their ICT portfolios, focusing on the “I” in ICT, with cloud as a major

strategic direction.

I March 201242

INNOVATION

The year 2012 brings with it the

continuation of supply chain challenges

that we have now come to accept as the

new norm. This includes the continuation

of globalisation, business volatility and

an increasingly competitive marketplace.

Logistics Executive, a human resources

and recruitment consultancy, regionally

based in Dubai, came up with some

interesting findings in their 2011-2012

Global Employment Market Report.

The annual survey, which is sent to

over 70,000 supply chain and logistics

executives in 82 countries (with a 15 per

cent response rate) is now in its sixth year.

According to the report, the Middle

East continues to grow despite these

global and economic challenges with

66 per cent of Middle East respondents

in the Logistics Executive Global Market

Survey indicating that their company has

experienced financial growth compared to

the last financial year and 75 per cent were

planning further growth in the new year.

Whilst this is excellent news on the

business front, it means that there will be

more pressure than ever to get the human

resources aspect right, as the enduring

message from executives is that success

is only possible with the backing of a

talented team.

It is therefore no wonder that in the

Logistics Executive’s 2011-2012 Global

Employment Market Report, 56 per cent senior

executives said that talent and retention would

be their main priorities for 2012.

From a human resources strategy

perspective this is excellent news. Human

resources teams are at their most effective

when they partner closely with business

leaders and ensuring that we retain the best

talent has to be the number one priority for

any business leader for 2012.

According to the market report, there

are major areas for improvement in the area

of staff retention. In particular, the report

highlighted two main points of concern

amongst Middle East respondents, salary

and employee development opportunities.

It is no surprise that salary is a key issue.

A large number of respondents at 78 per

cent indicated that they were seeking a

salary increase of up to 12 per cent with 10

per cent of respondents indicating that they

were seeking an increase of 15-20 per cent.

Remuneration is a necessary ingredient

not only to keep up with market conditions

but also to acknowledge market parity and

the increased responsibilities being placed

on supply chain professionals. It is however

only part of the solution in retaining valuable

employees. According to the Logistics

Executive’s Employment Market Report the

top five drivers of employee retention are:

• Career development

• Competitive pay and rewards

Creating a change cultureAs market pressures ramp up, executives continue to focus on attraction and retention but the focus needs to be more about what sits between these two according to the findings of Logistics Executives, Global Employment Report, with a special focus on the Middle East, Darryl Judd writes.

March 2012 I 43

INNOVATION

• Employer values & work-life balance

• Effective leadership

• Job security

Note that there is more to career

satisfaction than salary with career

development being top of the list here. It

was found that 17 per cent of the report’s

Middle East respondents indicated that

career development is a key reason for

them to change employment. This is only

topped by salary as a main motivator by a

short number at 18 per cent.

In terms of development opportunities,

the Logistics Executive 2011-2012 Global

Employment Market Report found that

though 59 per cent of business leaders

in the Middle East perceived that they

offered a satisfactory focus level on training.

However on the employee side there was

an increase in workplace movement to

other organisations within the GCC region

stating their main reason was lack of

development opportunity.

Perhaps there is a need for the human

resources function to shift their focus from

traditional means of engagement towards a

broader approach? According to Kim Winter,

Logistics Executive’s Global CEO, the answer

lies in the middle ground. With executives

and human resources focusing on retention

and attraction they are missing the middle

piece here – managing and developing

existing talent. “It could be argued that if

companies developed their own people,

they would end up with more talent than

they could handle,” adds Mr Winter.

Here, we are referring to structuring the

whole employee experience. This would

start with the first impression of the company

through employment branding. Followed with

the first impression as part of the attraction

strategy and the on boarding. Overlaid

throughout with a social element, this would

enforce a healthy approach to change.

A flexible training programme and

conditions of employment would be

carefully interwoven in this model. Mr Winter

goes on to explain that talent development

could encompass a range of options,

including ‘Real Talent Retention strategy

to include structured career development,

meaningful assessment processes,

relevant KPI’s linked to bonus schemes,

career choice options, job re-structuring,

improved participation and an enjoyable but

challenging work environment’.

By training we aren’t just talking here

Kim Winter, CEO, Logistics Executive’s Global

What if it was possible to retain a large pool of staff simply by offering them exposure to new on the job skills? It could be argued that if companies developed their own people, they would end up with more talent than they could handle.

The author, Darryl Judd, is the COO of Logistics

Executive. With more than 20 years of executive

experience in Aviation, Supply Chain and Logistics

Transport Industry, Darryl has held executive positions

within the airline & aircraft leasing/charter industry

and major logistics organizations. He is regularly

called upon to manage key human resources

consulting projects and supporting business to

drive changes, particularly around M&A activity and

international executive management. He can be

contacted at darrylj@logisticsexecutive.com

about the traditional definition of the word,

which refers to formal courses to increase

directly related work skills but to work related

on the job learning. This could be offered

not just to an earmarked group of ‘high

performers’ but to all company employees.

In other words it is treating everyone in the

business collectively as ‘the talent’.

Exposing them to new areas would then

allow personal growth on-the-job but not

necessarily directly related to their current

roles. In this way it would be possible

to retain a large pool of staff simply by

offering them exposure to new on the

job skills. This approach would require

executives to include talent development

as a major focus. Employees in turn would

take on some responsibility for their own

development and it would lead to a culture

that is more capable of dealing with the

high amount of change as employees are

constantly encouraged to find better ways

of doing things.

The approach of treating change as an

opportunity and not a threat in the micro

level is critical as the capacity to keep

up with changing markets is increasingly

paramount for a company’s survival and

competitive edge. It is not enough to

have the support structure in place such

as systems and process but imperative

that there is a workforce mentality that isn’t

afraid of change but actually sees this as an

opportunity and part of the norm.

A way of fostering this culture is to give

people in the workplace opportunities to

seek out new personal challenges that

will provide them with opportunities to

test themselves and drive themselves to

new levels of performance and ways to

connect with others in the workplace to

achieve outcomes. This will attract other

likeminded individuals to your organisation

and enhance employer brand.

Mr Winter adds, “As organisations get

flatter then offering career development

can be a challenge but this can be tackled

in many ways such as offering inter-

office transfers, job rotation and greater

delegation of decision making down the

line. Allowing employees to be involved

in ‘continuous improvement teams’ offers

both job satisfaction and better results – a

win-win”.

It will be interesting to see if the

year ahead sees the Human Resources

function take up the challenge to redefine

culture as a way of improving the total

employee experience. In partnering with

their Human Resources teams, executives

will recognise the broader role they may

play in achieving commercial success.

Through these measures the focus is

all about changing the mindset so that

employees aren’t just ready for change

but will embrace it on all levels. A change-

ready company will not only have the

competitive edge but will create a self-

perpetuating cycle of achievement.

I March 201244

PRODUCT UPDATE

Safely navigating in tight spaces with SPIN-GO

Lightweight cargo containers introduced

Arriving ‘fresh’ with ssI schaefer’s eCOfresh

Etihad Airways, along with its Unit

Load Device (ULD) partner Jettainer, has

embarked on a program to replace 3,000

containers from the original aluminium

ULD fleet with environmentally friendly

lightweight versions. The new lightweight

containers are manufactured from a range

of composite materials including Kevlar, the

material used in making bullet-proof jackets.

This composite is tougher and much

lighter with an average weight saving of

17kg per ULD or over 200kgs per average

wide-bodied flight. This significant weight

reduction will lower fuel consumption, costs

and CO2 emissions. It is estimated that the

implementation of the new containers will

cut emissions by approximately 5,000 tons

in 2012.

Innovative solutions are needed to

keep food fresh over long distances

without losing sight of the costs involved.

The folding ECOfresh crate from SSI

Schaefer now more than satisfies the

requirements of the food industry. Healthy

food, especially fruits and vegetables,

is enjoying a revival. And this is a factor

of growing importance in the future. But

products have to be reliably transported

from producer to consumer and remain

fresh over what is often a long logistics

process.

It was in response to these demands

that SSI Schaefer developed the folding

ECOfresh crate: a container for the food

industry that is robust but remarkably

light. A special feature of the crate is

its innovative folding mechanism which

allows it to be quickly and easily folded

together, reducing its volume by 86 per

cent. Minimising volumes of reusable

containers improves truck utilisation

rates and reduces the number of costly

trips. This has made the container not

only uncomplicated to work with but also

cost effective and ecologically sound.

Ventilation apertures also ensure optimum

cooling and ventilation of the food.

CADDY by Bravi Platforms is already a

popular machine and the choice for major

European retailers who want to assure safety

of their employees, while taking advantage

of their sales floor, granting an effective store

organisation and consequently an improved

product assortment. In some stores,

however, a great deal of work is carried out

between three and four metres. There is a

move away from step ladders and podiums

for these picking heights due to productivity

and, above all, safety issues.

Several retailers have requested to

get a smaller, simpler and consequently

cheaper alternative to the CADDY that

they can use in smaller stores or even in

bigger stores together with the CADDY,

so that they can finally get rid of every

ladder. Tired of employee assuming risky or

painful positions on ladders in front of their

customers to recover merchandise that was

difficult to reach, they were looking for a

safer and more efficient method of reaching

highly positioned merchandise, mannequins,

signs and displays. SPIN-GO delivers all

that and thanks to luxury finishing and an

attractive overall look customisable to

customer needs, it becomes active part of

in-store marketing.

We work for Bombardier Transportation Austria GmbH – RSI Rail Services International Austria GmbH – Railtec Entwicklungs- und HandelsGmbH – Deutsche Bahn - Stadtwerke München – Städtische Verkehrsbetriebe Zwickau GmbH – VAG Verkehrs-Aktiengesellschaft – SWB Stadtwerke Bonn Dienstleistungs-GmbH – Erfurter Bahn GmbH – Jenaer Nahverkehr GmbH – Bayrische Oberlandbahn GmbH – Dortmunder Eisenbahn GmbH – Rurtalbahn GmbH – Eurobahn – Voith Turbo Lokomotivtechnik GmbH & Co.KG – Kabel Technik Kiel – Gmein-der Lokomotivenfabrik GmbH – Bombardier Transportation GmbH – MGW Service GmbH & Co.KG – Northrail Technical Services GmbH & Co.KG – EuroMaint Rail AB – Motala Train AB – DB Schenker Rail Tabor S.A. – Capro GmbH – Hittmayr Baumaschinen GmbH – Hansa-Flex Hydraulik GmbH – Hagn Techn. Elastomere GmbH – MKE Metall- u. Kunststoffwaren Erzeugungs GmbH – Siems & Klein Autowerstatt-Technik Vertriebs GmbH – Tesso Klimageräte Vertriebsges.mbH – ÖBB Technische Services GmbH – ÖBB Immobilienmanage-ment GmbH – ÖBB Infrastruktur AG – Siemens AG Österreich – Wiener Linien GmbH & CoKG – IVB Inns-brucker Verkehrsbetriebe – Zillertaler Verkehrsbetriebe – RTS Rail Transport Services GmbH and many more.

WHEN TIME IS OF THE ESSENCEAND YOU MUST PERFORM

H&P Trading delivers Austrian craftsmanshipand solves your technical problemsin public transport and infrastructure!

ROAD+hoses & fittings+gear boxes & axels+pneumatic systems+doors & hinges+cnc parts+nuts & bolts+special parts+etc.

RAIL+fire protection+lighting & lamps+bearings & fittings+glass & windows+spare parts for brake systems+spare parts for the cabin+interior parts+etc.

Sales Success Management for H&P Trading by Wind & Wind FZ LLC.WE BRING THE EXPERTS TO THE MIDDLE EAST!

Troubleshooting

Spare Parts & Consumables

Research & Development

Improvements & Innovations

Redesign & Rebuild

ISO 14001, ISO 9001, EN 15085

!

Wind & Wind FZ LLCDubai Media City, Al Thuraya Tower II, Office 1402

Dubai, United Arab Emirates(represented by Gutenberg Publishing FZ-LLC)

T +971 (4) 4334 360F +971 (4) 4517 945E info@wind-wind.comW www.wind-wind.com

H&P Trading GmbHBundesstrasse 18

A-7531 Kemeten, Austria

I March 201246

ISSUE 45 | MARCH 2012

YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE

www.log.ae

Benefits of adopting GSM-R

Logistics trends in the GCC

Nominations now open

LOG. LEOAWARDS

BUILDINGRAILWAYS

TOP MEGA TRENDS

TRENDS | 24 PREVIEW | 32 REVIEW | 36

Safe and risk free delivery of perishables from farm to consumer | Page 06

LOGISTICS OF

PERISHABLES

Issue 44 | FeBRuARY 2012

YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE

www.log.ae

Ups & downs of real estate

First metro in the Maghreb

Industry’s leading award ceremony

LOG. LEO 2012

IndustrIaL rEnts

aLGIErs MEtrO

OVERVIEW | 28 PREVIEW | 32 ANALYSIS | 40

WAREHOUSE MANAGEMENT SYSTEMS

WMS promises efficiency, agility and performance in supply chains | Page 06

WAREHOUSE MANAGEMENT SYSTEMS

ISSUE 43 | JANUARY 2012

YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE

www.log.ae

HEAVY WEIGHT CHAMPIONS

GCC airports expand air cargo capacity | Page 06

Improving connectivity with neighbours

Offering specialised logistics services

Impressive HQ opens at DWC

SSI SCHAEFER KUWAITGAC

FEATURE | 24 PROFILE | 28 OVERVIEW | 35

Transportation Solution Manager - China

Responsibilities:■ Achieve growth, profit and safety targets for the business■ Identify and obtain business development opportunities ■ Build and grow client portfolios ■ Leading the preparations for tender submission;■ Reporting and presentation of sales activity and forecasts;

Requirements:■ Tertiary qualifications with a focus on Supply Chain Management■ Min 5 years operational experience■ High level of expertise in the Domestic Transport market in China■ Interpersonal & Communication Skills■Advanced skills in Microsoft suite of applications TO APPLY, VISIT WWW.LOG.AE/JOBS

Logistics Manager - AsiaThe role involves working closely with the General Manager Asia to oversee and direct all warehousing operations and related office based administration within both Singapore and operations in Korea, Malaysia and China. Should ensure that all Asia operational issues arising in the business are appropriately identified, assessed, monitored and managed correctly.

Responsibilities:■ Assisting with the development of the Group’s strategy within Asia■ Overall management of Asia accommodation planning■ Contract negotiations with third parties■ Ensure ongoing compliance with all Customs and Exchange policies and procedures■ Liaison with the Group General Managers

Requirements:■ Strong operational background■ Demonstrate strategic and tactical thinking and planning■ Strong Communication skills

Commercial Director - Middle EastThe Commercial Director (Air Cargo) shall take on responsibility for all commercial activities including all sales & customer service functions and the effective management of capacity. This role will be responsible for growing the business, enhancing profitability and ensuring a high level of customer satisfaction. Input to the direction and expansion of the company will also be required.

Responsibilities:■ Full responsibility for space optimization and flight profitability ■ Manage all aspects of sales in the region ■ Appoint, manage and monitor GSA’s in the region■ Identify new business opportunities

Requirements:■ Appropriate senior commercial experience within the air cargo industry ■ Extremely knowledgeable in managing space and mix of freight ■ Strong commercial abilities ■ Good communicator in English, strong IT skillsTO APPLY, VISIT WWW.LOG.AE/JOBS

Advertise your job in LOG. Classifieds: Call: +971 (4) 4334 360

E-mail: info@gutenberg-dubai.com

Purchasing Executive - UAEThe company is headquartered in Dubai with joint venture operations in Oman and Abu Dhabi. They are a subsidiary of a prestigious Group in the UAE. They are urgently in need of a Purchasing Executive to support the Purchasing Manager in the general administration of the purchasing department, ensuring that supplier relationships are managed in line with company standards and that internal customers are supported from a resourcing perspective.

Responsibilities:■ Prepare LPOs and obtain sign-off of management ■ Obtain quotations, summarise and analyse them ■ Manage and develop supplier relationships■ Work with senior managers across the business ■ Maintain supplier contract data

Requirements:■ Min 4-5 years purchasing experience in F&B and/or FMCG■ Local market knowledge of products and services■ Very good knowledge of local vendor network■ Good communication skills – verbal and written■ Ability to develop strong vendor and internal relationshipsTO APPLY, VISIT WWW.LOG.AE/JOBS

Import Officer - SingaporeLeading fashion retailer is looking for an Import Officer to join their dynamic team in Changi.

Responsibilities:■ Import cargo arriving by sea and air■ Assistance in cargo planning with other departments in DC■ Control and filing of incoming documents■ Document handling for customs clearance■ Data input into internal IT systems

Requirements:■ Experience in customs clearance of textiles■ Knowledge in international shipping (sea, air)■ Good IT knowledge

LOG. CLASSIFIEDS

March 2012 I 47

Cargo Training Officer - QatarA major air cargo business is seeking to hire a Cargo Training Officer to be based in Doha, Qatar.

Responsibilities:■ Conduct and organise training and safety programs/modules■ Ensure that all cargo staff undergoes training■ Provide manuals of quality standard procedures ■ Maintain international standards ■ Prepare annual training calendar

Requirements:■ Min 5 years overall experience ■ Expertise in IATA Cargo Handling Procedures and Regulations ■ Effective people management and planning

Supply Chain Solutions Advisor - Saudi ArabiaA leading Saudi Arabian logistics company requires a Supply Chain Solutions Advisor to manage supply chain solution implementation and develop effective relationships with clients.

Responsibilities:■ Supply Chain Solution design■ Costing and pricing of logistics solutions■ Proposals and presentations to clients■ Developing effective relationships with clients■ Represent the company at conferences and symposiums

Requirements:■ Relevant university degree■ 2-3 years supply chain consulting ■ Advanced proficiencies in Windows suite

Sales Representative - UAEOne of the market leaders in the freight & logistics industry is looking to fill an immediate requirement for an experienced Sales Representative to operate from their Abu Dhabi office.

Responsibilities:■ Actively identify, develop and secure new clients■ Seek out opportunities to increase existing business ■ Provide a consistently high level of service■ Develop a positive culture within the operations ■ Make optimal use of marketing plans and materials

Requirements:■ Self-driven, results-oriented with a positive outlook■ Min 4 years external and direct sales experience ■ Min 6 years experience within industry■ Natural forward planner TO APPLY, VISIT WWW.LOG.AE/JOBS

National Transport Manager - Saudi ArabiaA leading producer of chilled and frozen food is looking for a National Transport Manager to be based in Jeddah, KSA.

Responsibilities:■ Implement improvement in operating processes & systems ■ Assure integrity of freight payments ■ Implement a centralised Routing Planning system ■ Research, purchase and implement a fleet management system ■ Improve the quality of trucks, trailers and refrigeration equipment used in the operation

Requirements:■ Strong organisational skills ■ Experience with refrigerated loads an advantage■ Excellent financial analysis and budget management skills■ Strong analytical & planning abilities ■ Preferably native Arabic speakers but all candidates consideredTO APPLY, VISIT WWW.LOG.AE/JOBS

@ MOREONLINE

Advertise your job in LOG. Classifieds: Call: +971 (4) 4334 360 E-mail: info@gutenberg-dubai.com

LOG. CLASSIFIEDS

I March 201248

LOG CAFE`

Peace & tranquility

and aggressive

business plans

Hamdi Osman, Director, Solitaire International General Trading LLCAnyone who has been involved in our

industry for some time should have heard

his name: Hamdi Osman, formerly senior

vice president, FedEx Express Europe,

Middle East, Indian Subcontinent and

Africa. Just recently retiring from this

international company, he has moved

on to establish his own company called

“Solitaire International General Trading

LLC” in Dubai, UAE.

“I joined FedEx in 1978 in New Jersey,

USA. After holding various managerial

positions in operations, I was promoted

in 1989 to Managing Director of FedEx

Express Domestic Operations for the New

England area of the USA,” explained Mr.

Osman, an American citizen born in Egypt.

Holding a degree in Physical Education from

Helwan University, Cairo and an Executive

MBA from Boston University, USA, he

played professional football both for Egypt

and the USA.

“In 1991, I moved to Dubai as Managing

Director for Middle East Operations and

in 1997 I was promoted to VP Ops Middle

East, Indian Sub-Continent and Africa.

Then in 2007, I was promoted to Sr. V.P. for

Europe, Middle East, Indian Sub-Continent

and Africa, and in 2010 as Senior VP for

Emerging Markets, Middle East, Indian Sub-

Continent, Africa and Central Asia.”

The former FedEx senior VP’s career

is full of accomplishments and awards:

“I have been recognised with several

prestigious awards in and outside of

FedEx in recognition of my leadership

and distinguished performance and most

recently the Lifetime Achievement Award

at the 2011 LOG.LEO Awards and Seminar.

I also hold honorary positions in many

associations both locally and internationally.”

Moving from the USA to Dubai back in

1991 wasn’t so easy: “At first it was a huge

change and I wasn’t sure if we would be

able to adjust to life in Dubai. However,

within a matter of months, my family fell

in love with the place, the warmth of its

people and the vibrancy of the multi-ethnic

society. As for me, I found the business

environment, open, full of promise and

surrounded by innovative entrepreneurs

in a fast growing emerging market. It is the

peace and tranquility that I like most with

daily life here.”

After all the years in a global company,

Mr. Osman finally sits in the office of a

company he now owns: “Overlooking

Sheikh Zayed Road in Media City, I look

out at the city I had come to love and

realize that this is the first day of my dream

job - when I would be working only for

myself and nobody else. It is a high that is

infectious and I believe you can never get

out of it once you taste its success.”

He has ‘extremely aggressive’ plans

for the new business: “From bringing new

industry to North Africa to introducing new

concepts in products and services in the

Middle East Region, while exploiting the

business opportunities offered by the Indian

economic juggernaut, I am leaving no stone

unturned,” Mr. Osman asserts.

Mr. Osman feels that 2012 is full of

surprises and will be ‘more good than bad’.

He firmly believes that overall improvement

of 1 per cent in GDP will happen in most

countries around us. Last world is AFRICA is

the future NO BUT’s & NO IF’s.

ISSUE 45 | MARCH 2012

YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE

www.log.ae

Benefits of adopting GSM-R

Logistics trends in the GCC

Nominations now open

LOG. LEOAWARDS

BUILDINGRAILWAYS

TOP MEGA TRENDS

TRENDS | 24 PREVIEW | 32 REVIEW | 36

Safe and risk free delivery of perishables from farm to consumer | Page 06

LOGISTICS OF

PERISHABLES

FAX TO: +971 4 451 7945

I March 201250

EVENTS The LOG. Middle East Magazineis a publication of Gutenberg

Publishing fZ-LLC. Licensed byTECOM, Dubai, UAE.

Trade Licence No: 20704

www.log.aewww.gutenberg-dubai.com

Gutenberg Publishing FZ-LLC

Al Thuraya Tower II, Office 1402

Dubai Media City

P.O.Box 502547, Dubai, UAE

Tel: +9714.433 4360

Fax: +9714.451 7945

Managing Director: Reinhard Wind

reinhard@gutenberg-dubai.com

EDITORIAL

Editorial Director: Rustu Soydan

rustu@gutenberg-dubai.com

Sub Editor: Michelle Kasper

michelle@gutenberg-dubai.com

SALES & MARKETING

Sales Manager: Andy MacGregor

andy@gutenberg-dubai.com

LAYOUT & DESIGN

Timonera Grafik

info@gutenberg-dubai.com

ADMINISTRATION

Office Administrator: Sherlyn Millet

sherlyn@gutenberg-dubai.com

PRODUCTION

Production Manager: Roy Varghese

roy@gutenberg-dubai.com

Contributors’ opinions do not necessarily reflect those of the publisher or editor and while every precaution has been taken to ensure that the information contained in this journal is accurate and timely, no liability is accepted by them for any errors or omissions, however caused. Articles and information contained in this publication are the copyright of Gutenberg Publishing FZ-LLC (unless otherwise stated) and cannot be reproduced in any form without the written permission of the publisher.

MARCH

RAIl IndustRy MeetIngsFrance, 7-8 Marchwww.abe-industry.com/railim

euRAsIA RAIl tuRKeyIstanbul, 8-10 Marchwww.eurasiarail.eu/_OlD/2011/

FutuRe OF RAIl FReIgHt In euROPeberlIn, GerMany; 12 Marchhttp://marketforce.eu.com/conferences/railfreight12

lOgIMAtstuttGart, GerMany; 13-15 Marchwww.logimat-messe.de

AnnuAl BRIdges sAudI ARABIArIyaDh, 18-21 Marchwww.bridgessaudi.com

seAPORt seCuRIty AsIA sInGapOre, 27 - 28 March www.seaportsecurityasia.com

APRIL

MultIMOdAlbIrMInGhaM, uK; 1 - 3 Maywww.multimodal.org.uk

MIddle eAst RAIl OPPORtunItIesDOha, Qatar; 9-10 Maywww.fleminggulf.com

lOgIstICs tRAnsPORt exHIBItIOnhelsInKI, FInlanD; 9 - 12 May http://mark.logexpo.fi

suPPly CHAIn And lOgIstICs FORuM sAudI ARABIArIyaDh, sauDI arabIa; 13 - 16 Maywww.supplychainsaudiarabia.com

COld CHAIn sAudI suMMItrIyaDh, sauDI arabIa; 13-16 Maywww.coldchainsaudi.com

glOBAl lOgIstICs And sCM suMMItDubaI, uae; 16 Maywww.sclgme.org

FutuRe ROAdsrIyaDh, sauDI arabIa; 21-22 Maywww.iirme.com/futureroadssaudi

RORO 2012GOthenburG, sweDen; 22-24 Maywww.roroex.com

lOgIstICs & tRAnsPORt COnFeRenCeGOthenburG, sweDen; 22-25 Maywww.logistik.to

AseAn PORts & sHIPPIng JaKarta, InDOnesIa; 30-31 Maywww.transportevents.com

MAY

UPCOMING

KIngdOM MAss tRAnsIt suMMItrIyaDh, sauDI arabIa; 1-2 aprIlwww.naseba.com

WORld PORts & tRAde suMMItabu DhabI, uae; 2-4 aprIlwww.worldportsandtrade.com

KuWAIt MetRO & RAIlKuwaIt; 17-18 aprIlhttp://promediakw.com/2012/rail

uK RAIl develOPMent & InvestMentlOnDOn, uK; 18-19 aprIlwww.europeanrailwayreview.com

RAIl teCHnOlOgy COnFeRenCesaMstelveen, the netherlanDs; 24-25 aprIlwww.railtechnologyconferences.com

sOutHeRn AsIA PORts lOgIstICs & sHIPPIng cOlOMbO, srI lanKa; 26-27 aprIlwww.transportevents.com

IndIA WAReHOusIng sHOWDelhI, InDIa; 26-28 aprIlwww.indiawarehousingshow.com

InteRnAtIOnAl lOgIstICs & MAteRIAl HAndlIng exHIBItIOnbarcelOna, spaIn; 5 - 7 Junewww.silbcn.com

tOC COntAIneR suPPly CHAIn euROPeantwerp, belGIuM; 12-14 Junewww.tocevents-europe.com

tRAnsFAIRlOg haMburG, GerMany; 12 - 14 June 2012www.transfairlog.com