Link september 2013

THE OFFICIAL PUBLICATION OF THE SUPPLY CHAIN & LOGISTICS GROUP

www.sclgme.org Vol. 10 : September 2013

10 Years

as the voice of the Industry

Cele

br

ating

ADPC harbours lofty ambitions, growth plans on the horizonNew Khalifa Port is ADPC’s Crown Jewel

Abdulkareem Mubarak Al MasabiVice President, Khalifa Port Operations

24 | GATI LIMITED INDIA

A pro�le of one of the countryslargest logistics services provider

The LINK interviews Lars O. Nielsen onthe implications of this new acquisition

18 | MAERSK ACQUIRES TRIPLE-E12 | MATERIALS HANDLING

Preview of the MaterialsHandling ME 2013 Exhibition

20 | AL FUTTAIM RELOCATIONS

Carolyn King, Business Sector Managerupdates us on the growth of the company

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Editor’s Note

05September 2013

Editorial, Content Provision & Print-Production

Volume 10 | September 2013 Logistics leading the way

The logistics industry across the GCC appears to have been given a new leash of life thanks to the recognition by right-thinking and well-guided governments in the region of the importance and significance of this sector which accounts for a considerable percentage of the countries’ GDPs and creates hundreds of thousands of job opportunities. Investments pouring into developing and expanding state-of-the art mega airports, seaports, road and rail networks not only provide seamless connectivity and superb passenger and freight transport infrastructure but as a fallout also boosts trade and commerce, the mainstay of economies of most developing nations.

The recent announcement by MSCI (Morgan Stanley Capital International) to upgrade the UAE and Qatar from frontier markets to emerging markets effective May 2014 reflects the confidence in the markets and economies of these countries and bodes well for the future. Dubai is also a strong contender for the 2020 Expo and although an official decision is not expected until November 2013, there is clearly perceptible optimism in the air.

Talking of trade and commerce, The LINK met exclusively with Engineer Mahmood Al Bastaki, CEO & Member of the Board, Dubai Trade, the Emirate’s premier trade facilitation entity. This warm, genial official leading a multi-faceted institution with steely determination is the subject of our cover story. The public face of Dubai Trade, Engineer Mahmood Al Bastaki talks about both interfacing with and integrating all the many and diverse constituents involved in Dubai’s trade & commerce activities.

In this edition we have a special feature on how to tread warily & gingerly in the minefield of hazardous, vulnerable cargo. This danger zone comes with its inherent risks and vulnerabilities and our experts offer useful tips on how to navigate these dangerous waters and perilous skies.

We continue with Part II of our Reverse Logistics series where we discuss case studies and get further first-hand input from experts in the region.

The Ajman Free Trade Zone has been marketing itself rather aggressively in the media and we visited the zone and interviewed its General Manager, Mahmood Khalil Al Hashimi to get the low down.

Our regulars Mark Millar in Hong Kong and our roving legal eagle Joy Thattil have also been busy on their beats. Mark was in Sydney, Australia recently as a leading speaker at the Smart Conference, where he dwelt on the complex, fragmented and inefficient nature of the logistics still presenting challenges for those doing business in Asia. Mark also makes the case for companies to get more involved in ‘Reverse Logistics’ where in a fast-changing world, the opportunities outweigh the challenges. Advocate Joy Thattil reflects on recent rulings by India’s Supreme Court, the country’s highest court, upholding the validity of the sanctity of International ‘Commercial Arbitration’ in a recent ruling.

It’s a sizzling summer in the region and for those hibernating to cooler lands, heading home on vacation or even ‘staycationers’, we wish you happy holidays.

Happy reading for those wanting to catch up with the world of logistics in the region!

Malcolm DiasEditor

PO Box 76575Dubai - United Arab EmiratesTel : +971 4 296 37 90Fax: +971 4 296 37 92Email: [email protected]

DirectorKhalid Al Falasi

General ManagerS. [email protected]

EditorMalcolm [email protected]

Art / ProductionSulaimani Masarrat Fatima

Advertising

P.O. Box: 49784Dubai - United Arab EmiratesTel: +971 4 3978847 / 3795678

Jason [email protected]

Deepak [email protected]

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

and views contained in this publication are not necessarily those

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

part of its contents thereof may be reproduced in any form with-

out the written permission of the publishers.

Contents

05 | From the editor’s desk

08 | CoVer storY Abu Dhabi Ports Company

12 | materials handling middle east 2013

16 | Barloworld logistiCs’ new JeBel ali FaCilitY

18 | exCusliVe interView Maersk Line

20 | al Futtaim logistiCs reloCations & imd

16

12

08 18

12

Supply Chain Visibility

22 | Blue oCean aCademY: Convocation Ceremony

24 | Feature/interView : Gati Limited

27 | Power PlaYers: New Appointments

30 | saFemix readY ConCrete: Leading the way

55 | sClg leadershiP & ProFiles

56 | new sClg memBers

58 | insight

28 | guest Future Supply Chain Visibility

30 | exPort artiCle

33 | dhl Promote russia, Cis trade lanes 40 | news

• Etihad Rail signs MoU with Bertschi • Saudi’s Bahri inks deal for maritime yard project • DP World profit grows despite declining volumes • Egypt fortifies Suez Canal security after failed attack • DWC will be Air France-KLM-Martinair Cargo’s new ME freighter hub • Dubai Trade online users urged to increase e-services usage for the 6th ESEA Awards • New Cargo Terminal for Emirates SkyCargo at DWC • Jeddah airport expansion on track

34 | logistiCs & the law Piracy on High Seas

37 | inFra oman 2013

38 | uasC-hhi agreement

17

22

4945

43

48

Blue oCean aCademY: ConVoCation CeremonY

Supply Chain Visibility

08 September 2013

Cover Story: Abu Dhabi Ports Company

ADPC harbours lofty ambitions, growth plans on the horizon

The landmark inauguration of the gleaming, brand new, Khalifa Port, Abu Dhabi at 12.00 noon, 12 December 2012, at the hands of HH Sheikh Khalifa bin Zayed Al Nahayan, President of the UAE & Ruler of Abu Dhabi, marked a major turning point, a milestone and watershed moment not only in the history of maritime transportation development in the UAE but also the nation’s trade and economic infrastructure.

This stellar event was also attended by an august gathering that included HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President & Prime Minister of the UAE and Ruler of Dubai alongside HH Sheikh Mohammed bin Zayed Al Nahayan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces and several sheikhs, dignitaries, distinguished guests and high-ranking Government

officials. As the provider of world-class integrated

ports and industrial zone services. Abu Dhabi Ports Company (ADPC) has come a long way from its inception six years ago when the site of what is now the imposing Khalifa Port and its adjunct KIZAD (Khalifa Industrial Zone Abu Dhabi) was non-descript scrubland and inhospitable terrain. Built at a cost of a staggering USD $ 7.2

Abdulkareem Mubarak Al MasabiVice PresidentKhalifa Port Operations—Ports

“The 12th of December 2012 was a major highlight in the history of ADPC and marked the climax of several years of hard work, commitment and perseverance. Actually Khalifa Port was conceived much earlier, towards late 2007—2008 and it took a considerable amount of time, as would be expected for a project of this magnitude, for all of our efforts to come to fruition. I would also like to express our thanks and appreciation to the vision of our country’s leadership and firm support and guidance we received from both HH Sheikh Khalifa bin Zayed Al Nahayan, UAE President & Ruler of Abu Dhabi and HH Sheikh Mohammed bin Zayed Al Nahayan, Crown Prince of Abu Dhabi who was personally involved in every stage of the port’s development.”


09September 2013

billion (AED 26.5 billion), this megaproject went operational in September 2012 whilst Emirates Aluminium’s (EMAL) dedicated on-site berth has been functional since November 2010.

The magnificent and impressive Khalifa Port is the most advanced container terminal in the whole region with an initial capacity of 2.5 million TEU containers and 12 million tons of general cargo. With the right market conditions, Khalifa Port is designed to be able to expand over four more phases to its full capacity—to be able to handle 15 million containers and 35 million tons of cargo by 2030.

The LINK journeyed to ADPC’s executive offices located in Mina Zayed Abu Dhabi to conduct an exclusive interview with Abdulkareem Mubarak Al Masabi, Vice President, Khalifa Port Operations—Ports Unit to talk expansively about the recent inauguration of the groundbreaking, mega port Khalifa, KIZAD and ADPC’s current and future endeavours.

The LINK: The official opening of the super Khalifa Port at 12 noon, 12/1/2/12 by HH The UAE President was a major highlight in ADPC’s chronology. Describe in your own words that important day and what implications it has for ADPC and the maritime industry in the UAE?

Abdulkareem Mubarak Al Masabi: Yes, the 12th of December 2012 was a major highlight in the history of ADPC and marked the climax of several years of hard

work, commitment and perseverance. Actually Khalifa Port was conceived much earlier, towards late 2007—2008 and it took a considerable amount of time, as would be expected for a project of this magnitude, for all of our efforts to come to fruition. I would also like to express our thanks and appreciation to the vision of our country’s leadership and firm support and guidance we received from both HH Sheikh Khalifa bin Zayed Al Nahayan, UAE President & Ruler of Abu Dhabi and HH Sheikh Mohammed bin Zayed Al Nahayan, Crown Prince of Abu Dhabi who was personally involved in every stage of the port’s development.

For me personally this date marked a turning point for ADPC and one that will be forever etched in our memory.

Q: How will Khalifa Port become a game changer in terms of sea cargo movement into and out of the UAE?

A: What we have in mind is a strategic, long-term vision for Khalifa Port. To put things in perspective, when fully completed in 2030, Khalifa Port and KIZAD will combine to make this not only the Emirate’s largest infrastructural project but also one of the world’s largest industrial areas with one of the biggest ports. Technologically and from an infrastructure and facilities perspective, Khalifa Port is the most advanced port not only in the UAE and in the region but in the world. As a major first step, we have already moved the entire container business out of Mina Zayed to Khalifa Port.

The state-of-the-art Khalifa Port will be the gateway to all trade in Abu Dhabi. With two-way commerce booming in the Emirate, Khalifa Port is designed and well equipped to handle the world’s largest ships and will be the first port in the region offering integrated rail facilities. Increased capacities imply that not only will our GDP and economy grow considerably, but we have the potential to create thousands of new jobs directly and indirectly.

Q: What is your objective for Khalifa Port for the short term and is it your endeavour to make this brand new port the biggest in the region and in what timeline?

A: Our main objective of Khalifa Port is and will always be to facilitate and empower trade in the Emirate of Abu Dhabi, the UAE and indeed the region. Our goal is trade expansion, importing goods into and exporting goods outside harnessing Port Khalifa as a conduit. Clearly we intend for Khalifa Port to become the nation’s and region’s top hub and port and we will continue to strive ceaselessly to accomplish this goal. I do not wish to set a timeline, as these are still early days, but I believe this will eventually become a reality.

Q: Tell us about the new crane installations at Port Khalifa. Where were they sourced from and what was the total investment?

A: The new cranes on order will further boost efficiency at Khalifa Port and we envisage that a truck coming in ought

10 September 2013


not to take more than 15 minutes to have a container loaded on to it. That is our endeavour and this will be ensured with both the existing and the eventual acquisition of sophisticated new cranes on order from the ZPMC yard in Shanghai, China, for three new STS (ship to shore) cranes, among the largest in the world. The three new cranes are scheduled to become operational at the Port in March 2014. They will join the six other ZPMC STS cranes currently serving the semi-automated state of the art container terminal at Khalifa Port.

In addition, ADPC has also ordered 12 new ASC (Automated Stacking Cranes) for the container yard from Konecranes, who supplied the current 30 ASC cranes onsite. The first six are scheduled to be delivered by January, 2014, and the remaining six, two months later.

Q: How does the massive monetary investment in Khalifa Port reflect on the vision of the UAE leaders for growth, prosperity and trade facilitation in the country?

A: Firstly I commend the leadership of the UAE and Abu Dhabi Governments and the far-sightedness of our leaders to transform our economy from being oil & energy centric to a more diversified state. Oil

and gas are finite entities, not sustainable and may not last forever, but facilitating a wider, broad based economy will ensure persistent and continued progress and prosperity for the citizens of this country.

Khalifa Port is pivotal for this vision to materialize. As the major entreport for trade and commerce and provider of holistic solutions for maritime transportation, this new port will make our growth ambitions possible. It will accelerate the growth and turnover of business into and out of Abu Dhabi, the UAE and the wider hinterland thereby keeping the wheels of progress moving. Both Khalifa Port and its spinoff, KIZAD, are the cornerstones of the Abu Dhabi Economic Vision 2030.

Q: Describe the relationship between ADPC and KIZAD?

A: The 417-sq. km. KIZAD is a unit of ADPC and work in tandem, there is good professional synergy between them. They are partners and support and complement one another. KIZAD has tremendous potential to grow and become an important driver of and contribute to the economic growth of Abu Dhabi & the UAE, given its world-class infrastructure, multi-modal connectivity and proximity to one of the world’s most advanced ports.

Factfile: Khalifa Port

Khalifa Port now handles all of Abu Dhabi’s container traffic following the 100% TEU traffic transition from Mina Zayed in late 2012. Khalifa Port has the first semi-automated container terminal in the region, the only one for 5000 kilometres.

Khalifa Port is crucial to the ADPC megaproject which includes Khalifa Industrial Zone Abu Dhabi (Kizad), whose Area A comprises 51 square kilometres. Khalifa Port offers direct access for all companies setting up in Kizad. The megaproject will create more than 100,000 jobs, contributing 15% of the Emirate’s non-oil GDP by 2030.

With the commencement of commercial operations at Khalifa Port’s unique semi-automated container terminal, on September 1st, 2012, Abu Dhabi has seen record cargo traffic.

Designed with a 16 metres draft and a four kilometres quay wall, Khalifa Port features the latest technology and is capable of accommodating the largest container ships. The initial annual capacity of the port’s first phase is 2.5 million TEU’s of container traffic and 12 million tons of general cargo.

The offshore Port has been constructed on a reclaimed Port Island with an offshore area extending over 2.7 square kilometres and the Container Terminal situated more than four kilometres out to sea. This is to help protect the Ras Ghanada coral reef, adjacent to the onshore port areas. ADPC spent AED 880 Million (USD 240 million) building the 8 kilometre-long Environmental Protection Breakwater that helps protects the marine life and coral reef.

KIZAD has vertically integrated industry clusters that include aluminium (EMAL), steel, chemicals & petrochemicals to downstream product lines including glass, paper & packaging, pharmaceuticals, food & commodities, engineered metal products and importantly trade & logistics. ADPC and KIZAD will work in synchrony to make

the latter the world’s foremost industrial zone and a hub for manufacturing, logistics and trade across a number of verticals and sectors.

Q: On June 25 (2013), ADPC celebrated ‘International Day of the Seafarer’. Why did you choose to commemorate this day?

A: ADPC decide to honour these unsung heroes and recognize their services which many of us take for granted. Around 90 % of international trade is moved by sea transportation and through seaports. It was a gesture of appreciation and support for the seamen and seafarers who are responsible for making this happen.

Q: What are ADPC’s plans to develop other ports including Sila, Marfa, Mugharraq, Musaffah and Shahama?

A: ADPC is working closely with these local and feeder ports to further develop infrastructure, upgrade facilities, improve other amenities and serve their local communities. For example we are adding facilities that will make Marfa a major fishing port including the construction of slipways, fishing pontoons and provision of feeder services.

ADPC has also earmarked AED 17 million for investment in Port Marfa that will support local fishing community, increase business opportunities and enhance water sports. Plans are also afoot to convert Shahama Port

into a vibrant water sports centre. Q: What implications will the

construction of a rail line by Etihad Rail have for Khalifa Port?

A: We are working closely with Etihad Rail and the development of the rail line bodes well for both Khalifa Port and KIZAD which will now have connectivity not only with other commercial ports such as Musaffah but also the vast interior of the Al Gharabiya (Western) region of the Emirate of Abu Dhabi and then eventually with the remainder of the UAE and eventually the other GCC countries. In fact, Khalifa Port will be the first to be connected by rail and that is testimony of our importance in the transportation network of the country and the region.

Q: What are ADPC’s plans for Mina Zayed in light of the emergence of Khalifa Port?

A: Although container traffic has been phased out to Khalifa Port, Mina Zayed will still have a key role to play and will continue to handle general cargo, liquid bulk and specialized cargo in addition to Ro-Ro. Discussions and plans are ongoing with Abu Dhabi Tourism Authority (ADTA) and the Tourism Development Investment Company (TDIC) to upgrade the existing cruise terminal building to facilitate increased cruise tourism traffic to the Emirate.

11September 2013


Features:

• PortIslandbuilt4.6kmsoffshore; total area 2.7 sq. km.• OnshoreTerminalFacility; totalarea6.4sq.km.• Channel:12kmslongand250metres wide,16.5metresdraft• Quaylength:3.2kms• PortBasin:800metresX3.6kms• Draft:18metresalongsidequayto accommodate the largest ships• Latestequipment/VTS/newtugs and safety measures in place• Extensivewarehousing&coldstorage facilitiesavailable—upto2040reefers

Cranes

• 6Superpost-Panamaxship-to-shore container cranes• 20dieselelectricstraddlecarriers• 30automatedstackingcranes

12 September 2013

Materials Handling Middle East 2013

The September edition of the region’s only dedicated trade platform for materi-als handling, logistics and supply chain will feature the widest representation yet. According to organiser Epoc Messe Frank-furt, Materials Handling Middle East 2013 is expected to begin at least 25% larger than the previous edition. This underlines the growing importance of the Middle East market in the plans of international cargo, freight and supply chain majors.

Lined up for the attention of the largest gathering of trade buyers, professionals, senior representatives from the public & private sectors, wholesalers & retailers, port & transport operators as well as warehouse & storage providers, will be a kaleidoscope of the latest products, trends and develop-ments in the industry.

Exhibitors will be vying for attention with a series of product launches aimed at buy-ers from across the wider region. These include some of the latest developments in materials handling systems and stream-lined storage systems. Exhibitors will also be demonstrating how innovation and new technology is transforming the way the industry works.

The LINK spoke exclusively to Jasmeet Bakshi Singh, Senior Show Manager, Mate-rials Handling ME 2013, EPOC Messe Frank-furt ahead of the event for an update and foretaste of what we might expect at this landmark exhibition.

The LINK: Please provide us a snapshot of the biennial Materials Handling ME 2013 in terms of the industry scope of the exhibition and the profiles of the typical exhibitors?

Jasmeet Bakshi Singh: Materials Han-dling Middle East is the region’s premier dedicated trade and networking event for the warehousing, supply chain, freight and cargo sector. The exhibition reaches out to the wider region and as well as a range of visitors from the UAE, the exhibition at-tracts key decision makers from Saudi Ara-

bia, Oman, Iran, India and Qatar, to name a few of the top visiting countries.

The exhibitors are local, regional and international and the product profile in-cludes Materials Handling & Lifting Equip-ment, Logistics & Postal Service Providers, Warehousing Equipment and Value-added Logistics Services. This year the German Pavilion is 5 times larger than the previous year and we also have a 2.5 fold increase in the China Pavilion.

Each edition features a range of product launches so visitors can actually see what new products are available in the industry and get demonstrations from experts on how they actually work. United Motors, will be launching two new brands at the exhibi-tion, while Bagader Trading will be featur-ing a new racking division. Swisslog will be launching their automated warehousing system called AutoStore and Constromech (US) – Collision Sentry safety systems which are designed to ensure a safer work envi-ronment

Materials Handling Industryon the rebound in the Middle EastA resurgent, revitalized, expanded Materials Handling ME 2013 is slated to open in Sheikh Saeed Halls 2 and 3 of the Dubai International Convention and Exhibition Centre on 12 September. With the materials handling, warehousing, freight, cargo and supply chain industries rapidly picking up pace in the region spurred by resur-gent economies, the upcoming edition of the three-day Materials Handling ME 2013 has attracted increased interest from across the spectrum of the global industry.

JasmeetBakshiSingh


13September 2013

Euroroll – live storage systems such as Gravity Conveyors for small cartons to heavy pallets

Galadari will present a new range of 4ton and 5ton diesel warehouse, the first ever forklift truck installed with electronic con-trolled HST (Hydrostatic Transmission) and variable pump CLSS (closed-centre load sensing system) whilst Milford will conduct its worldwide launch of UN certified 1000 litre folding IBC for the transportation of dangerous goods

Q: Handling ME made its debut in 2001 and has grown considerably to its current extent and size. What do you attribute the success of this exhibition to?

A: Materials Handling Middle East is to-day one of the most promising trade shows

organized by Epoc Messe Frankfurt. Prior to 2013, the largest edition of this exhibition was in 2007. Then, during the more difficult economic times, the show decreased a lit-tle. However, I am delighted to report that this year will be the largest edition of the show since its launch in 2001.

This year’s edition features all of the key players in the market with 152 brands from 18 countries participating. Some of the known brands include Airlink, Al Shirawi, Carl Stahl, Cogri, DB Schenker, Emirates Post, Face, FAMCO, Galadari Group, Helm Hellas, Jungheinrich, Kanoo Machinery, Kardex, Liugong and United Motors.

The reasons for this growth are manifold. Organised by the world renowned Messe Frankfurt group, the trade fair has gained a reputation of being a well-focused event catering to the varied needs of the growing local market. A significantly large number of leading international materials handling, supply chain, freight and logistics providers also view the exhibition as the ideal access point to the fast-expanding region. The booming regional economy spurred on by large investments in logistics and cargo

handling facilities also make this a region of immense interest globally.

Q: What is significant / extraordinary at this year’s edition of the Materials Han-dling ME 2013 Show and how it has pro-gressed over the previous 2011 edition?

A: As mentioned, Materials Handling Middle East 2013 is set to be the largest since the trade fair was launched in Dubai, an indication of the tremendous growth potential held out by the industry in the region. This is a specialized sector and we have many exhibitors returning after the 2011 edition, but with larger stands.

The two day conference running along-side the exhibition is also set to attract at-tention as it covers a wide range of hot top-ics relating to the industry. This is a place where delegates can pick up tips and tricks for improving their organization’s bottom line.

Q: Please characterize the visitor profile at Materials Handling ME 2013?

A: Materials Handling Middle East tradi-tionally attracts a wide variety of buyers and trade professionals, representing logis-tics companies, ports & airlines, wholesal-

• Materials HandingMiddle East waslaunched in 2001 and is held every two years. The current edition is the seventh edition.•Areasizeofexhibition:Approximate-ly 3,500 sq. m. net; 25% larger thanprevious edition.•Number&nationalityof exhibitors:152brands from18countries includ-ing UK, Ireland, Germany, France, UAE, India, China & the USA. • Country Pavilions: Germany andChina

“We are glad to be a part of yet another edition of Materials Handling Middle East, which is the biggest gathering of the logistics industry re-gionally. We look forward to having fruitful interaction with potential clients, many of whom see the exhibition as a key sourcing event.”-DavidDronfield, General Manager, Storage & Handling Solutions Division of FAMCO


14 September 2013

ers & retailers, government organizations, manufacturers and commercial end users.

The 2011 edition attracted visitors from 55 different countries spread across the GCC, Middle East, Africa and Asia Pacific. 67% of visitors are the final decision makers or have purchasing authority within their organization and so they represent a very important customer set for our exhibitors. Companies such as Al Futtaim Logistics, Al Rostamani Group, FedEx, TNT, UPS, Car-refour, Jumbo Electronics, DEWA, Dubai Municipality, Abu Dhabi Terminals, DNATA, Dubai World Central and so many more all

stand to benefit from visiting the exhibi-tion.

Q: How significant is the Middle East for the Materials Handling (generic) industry and by how much is the trade growing in the region?

A: The high-powered economies of the Middle East are becoming increasingly significant markets for freight, cargo and supply chain players. Growing exports of oil and gas and increasing imports and re-exports of goods and commodities have made the Middle East a focal point for these industries. Additionally, with large-scale investments in transport and logistics

infrastructure and huge commercial and developmental projects underway, the re-gion remains high on the priority lists of the international materials handling industry.

Take the Free Zones for example. At Jebel Ali Free Zone there are over 6,000 compa-nies alone and 75% of these are involved in trading, warehousing and distribution, integral components for the materials han-dling sector. Jebel Ali and Port Rashid are forecast to grow 5.7% in their total tonnage throughout this year and the growth in UAE’s total trade in 2013 is forecast at 7%. Further afield, other established commer-cial and logistics hubs such as Abu Dhabi,

“Materials Handling Middle East is extremely important to us as we tend to pick up a lot of business leads here. The quality of visitors has been outstanding and we look forward to another successful outing this year.” -CamilleS.Samaha, General Manager, the Span Group


15September 2013

Jeddah, Dammam, Doha, Kuwait, Manama and Muscat are also experiencing growth. Figures like this can only mean that the in-dustry is in a very strong position and can only continue to grow.

Q: What do you hope for Materials Han-dling ME 2013 to attain in terms of goals and objectives?

A: The exhibition will continue to work

towards better representing the wide spec-trum of the regional industry while at the same time influencing positive change and further business development in the wider region. We want to play a part in educating the local market about the products and services which can make their lives easier. It can make a big difference if a small com-pany can make even a minor investment in technology that will last. Companies need

to be able to be effectively and efficiently running their warehouse so they can con-centrate their efforts on other aspects of the business. We hope to raise awareness on these matters through the exhibition.

We are confident that this will be a suc-cessful edition which truly reflects the mar-ket conditions. It should be the place for industry professionals to come for sourc-ing new products and services and to stay

At this year’s Materials Handling Middle East in September 2013, SSI Schaefer will present state-of-the-art Picking Technology seen for the very first time in the Middle East. “Our local office in Dubai is very suc-cessful in the local markets since 2001 and for the last four years and special focus was set to Logistics Automation,” says Matthias Hoewer, General Manager of SSI Schaefer

Middle East and Africa. “For this year’s show, SSI Schaefer will

showcase an ergonomic picking station with a performance of more than 1,000 Picks per hour. An absolute premiere for the Mid-dle East! As a special feature we will invite our customers to join us and participate in a hands-on experience and live demonstra-tion of the system,” continued Matthias.

A visit to booth MH-612 within the Ger-man Pavilion (Sheikh Saeed Hall 3) definitely is not only worth for those ones who would like to learn more about SSI`s latest Pick-to-tote system or want to win exciting prices in the picking competition. Everybody who likes to get a general update on SSI Schaefer latest products and developments in the re-gion is of course gladly invited as well.

How much can you pick in two minutes? SSI Schaefer points the way to rich pickings

Sponsors/ConferenceMaterials Handling ME is endorsed

by SCLG and supported by the Span Group, FAMCO and Emirates Post Group Holding as sponsors. A Warehousing, Logistics & Materials Handling Conference will be held in tandem with the exhibition in co-operation with SCLG. It will cover key industry trends, provide tips on increasing warehouse efficiencies, information on cost-effective solu-tions and updated facts and statistics relating to the industry.

Barloworld Logistics’ new Jebel Ali facility

17September 2013

Barloworld Logistics, the leading provider of logistics and supply chain management solutions, recently inaugurated a new cold storage warehouse inside the Jebel Ali Free Zone in response to the UAE’s growing logistics requirements. Advocate Dumisa Ntsebeza, Chairman of Barloworld Limited, personally led the inauguration of the warehouse.

With the industrial sector now contributing 19 per cent of the national GDP, increasing focus is being directed towards support services and facilities for industrial activities. In Dubai, the region’s recognized transport and logistics hub, there has been a sharp rise in demand for specialized facilities to store sensitive products such as food and medicine.

“The logistics landscape of Dubai and the UAE in general continues to diversify amidst the growing scope and influence of the industrial sector. This requires tailored services and facilities that can meet demand while maintaining operational excellence. Barloworld’s new warehouse aims to satisfy an important niche of logistics service while exceeding operational demands and setting an example in sustainability as well,” commented Frank Courtney, Barloworld Logistics Chief Executive for the EMEA region.

Barloworld’s 22,000 sq ft cold storage warehouse can maintain temperatures

of between 18 and 22 degrees Celsius to carry a host of temperature and humidity-sensitive products such as food and pharmaceuticals. The facility can accommodate more than 7,000 pallet positions and features multiple loading bays for efficiently loading and unloading goods. The high standard of housekeeping employed for the facility surpasses all food safety requirements as well.

Like all Barloworld Logistics warehouses, the new facility has 24-hour CCTV monitoring and onsite security to ensure that goods are safe, don’t incur shrinkage, and are not compromised in any manner. The combination of the Infor10 Warehouse Mobility software and Barloworld’s own web portal enables customers to track their products in real-time and receive customized reports.

Moreover, the warehouse is regarded as the most environmentally-friendly in Barloworld Logistics’ Middle East operations. It incorporates skylights that make use of sunlight without affecting temperature and induction lighting which consumes only 20 per cent of the electricity used by normal lighting at night. The warehouse forklifts operate on bio diesel and come with chargers that use 22 per cent less electricity than regular models. Finally, a water harvesting system captures all the water from the dehumidifier for future use in toilets and gardens.

Several company officials were in attendance and included Clive Thomson, CEO of Barloworld Limited; Martin Laubscher, CEO of Automotive and Logistics; Steve Ford, CEO of Barloworld Logistics; Frank Courtney, CEO of Barloworld Logistics EMEA, and Brian Phillips - Financial Director of Barloworld Logistics EMEA. Staff from Barloworld Logistics Dubai participated in the event as well.

BarloworldLogisticsopens new cold storage warehouse in Jebel Ali

“Barloworld’snewwarehouse aims to satisfy an important niche of logistics service while exceeding operational demands and setting an example in sustainability as well,”

AdvocateDumisaNtsebeza,ChairmanofBarloworldLimited,inauguratingthewarehouse

Newly inaugurated cold storage warehouse

18 September 2013

Excuslive Interview : Maersk Line

It was a watershed moment and an important milestone when the first Maersk superlative Triple-E cargo vessel sailed out of the sprawling Daewoo Shipbuilding and Marine Engineering (DSME) yard in Okpo, South Korea, on 2 July 2013.It was a turning point in modern-day maritime history and marked the commencement of an intriguing new age of container shipping.

Earlier, the first Triple-E vessel, appropriately named Maersk McKinney Møller, was received by Ane Maersk McKinney Møller, the youngest daughter of the vessel’s namesake shipping tycoon at an official handover ceremony held at the shipyard.

The Maersk Triple E class is a family of large, fuel-efficient container ships, designed as a successor to the Maersk E-class. Roughly a quarter of a mile long, almost as tall as a 20-storey building and built from enough steel to construct more than eight Eiffel Towers, the giant vessel will become the largest operating ship on the ocean.

Hosting a record-breaking capacity of 18,000 TEU (20-foot equivalent units) containers the Triple E has enough room for 11% more cargo than the world’s current largest freight ship, the 16,020 TEU Marco Polo operated by the Marseilles-based French firm CMA CGM. To put these figures into perspective, 18,000 TEU containers provide enough space to transport 111 million pairs of sneakers. If stacked one atop the other, they would reach a staggering 47 kilometres into the sky.

For Copenhagen-headquartered Maersk, the largest Danish firm and one of the biggest shipping companies in the world, which has 20 of these seafaring leviathans on order at a cost of $190 million each, the Triple E is more than just the next stage in the battle to be the ocean’s biggest beast. It’s also a vital component of a carefully considered strategy that aims to see the company facilitate long-term trade along the bustling AE10 shipping route between Asia and Europe as well as reduce its carbon footprint.

Early Friday morning on 9 August 2013, the Mærsk Mc-Kinney Møller made its first ever transit through the Suez Canal on its maiden voyage. A few days later, the first Triple-E vessel passed the straits of Gibraltar

and is now in the North Atlantic, safely en route towards its final destination in Northern Europe.

The LINK conducted an exclusive interview with Lars Ostergaard Nielsen, Managing Director, Maersk for the Lower Gulf & Iran), in his offices overlooking the busy Sheikh Zayed Road artery in Dubai for his take on the acquisition of the first Triple-E super carrier and its implications for the company in the future.

The LINK: Maersk has recently taken delivery of its first Triple-E mega ship,the Mærsk McKinney Møller. What are the direct implications for Maersk in the acquisitionoftheTriple-Einoperationalterms?Lars O. Nielsen: The Mærsk McKinney

Møller is one of the largest ships in the world, and along with the other 19 Triple-E vessels on order from DSME, sets new standards in the container industry, not just for size, but also of energy efficiency and environmental performance. The 3 ‘E’ in the class name refers to the most important design characteristics of these ships: Economy of scale, Energy efficiency and Environmentally-improved performance.

The 20 Triple-E vessels will operate on the world’s busiest trade lane, carrying cargo between eight ports in Asia and six in Europe. They will be gradually phased in to this route over the next two years, replacing smaller and less efficient vessels.Q:Fromavalueperspective,howcost-

efficientistheTriple-E?A: As the name indicates these vessels

are designed to benefit from Economy of Scale as well as Energy efficiencies. The fuel consumption per transported container is approximately 35% lower than the 13,000 TEU vessels being delivered during recent years. Q:HowgreenistheTriple-E?A: Relative to other vessels then yes these

new vessels can be considered ‘green’. The main aspect is the mentioned reduction in

Maersk’snewgenerationofTriple-EmegashipsboundforTriple-Aratings

LarsO.Nielsen

Excuslive Interview : Maersk Line

19September 2013

fuel consumption per containers moved. Compared to the current E-type best performing vessels in the Maersk Line fleet, the EEE will be 20% more efficient per container moved. Compared to published industry average on the Asia to Europe trades, the EEEs will reduce CO2 emissions by about 50% per container moved.

Another point is that these vessels are equipped with a ‘cradle to cradle passport’

which in short is a database of the materials used in the construction and maintenance of the ship to ensuring better recycling. Q: The Triple-E is billed the world’s

biggest operational ship. Give us a sense of the size of this ship and how it compares with your existing fleet?

A: The Triple-E is 400 metres long, 59 metres wide and 73 metres high with a capacity of 18,000 Twenty-foot Equivalent

Units (or containers). Our largest vessels (Emma Maersk class) have a capacity of 15,500 TEU. With 18,000 TEU, the Triple-E offers a 16% increase.

Q: How big is the order in terms of the number of ships ordered and the cost of each?

A: There are total 20 vessels on order with an estimated cost of USD $ 190 million per ship.

Q: Are the Triple-E ships built exclusively for Maersk?

A: Yes the vessels are built exclusively for Maersk Line. Depending on corporation with other shipping lines it could be that cargo from other lines will be loaded on these vessels but they are built for and owned by Maersk Line.

Q: On which routes is the Triple-E expected to ply? Are they expected to touch Middle Eastern ports anytime in the future?

A: The Triple-E will sail between Asia and Northern Europe. Given the capacity of 18,000 TEU, it takes a market of a certain size for it to make sense to bring these vessels. Therefore, at this stage we do not have any plans for the Triple E vessels to make any port calls in the Middle East.

(At the time of going to the press it was reported that the Maersk McKinney Møller has sailed to her eventual destination, the Port of Rotterdam’s Maasvlakte 2 Terminal, to a rousing reception by employees, shippers, customers and fans from across Northern Europe)

Triple-Einbrief• Capacity: 18,000 TEU• Vessels on order: 20• Cost: USD 190 million/ship• 400 metres long• 59 metres wide (beam)• 73 metres high• 19 levels (tiers): nine above deck, ten below• Top speed: 23 knots• Crew: approximately 22• Daily Fuel Consumption: approximately 100 tons• Delivery date of first vessel: 14 June 2013• Maiden voyage: 15 July 2013

MaerskGroupQ2-2013resultsencouragingThe Maersk Group has recently revealed its Q2-2013 financial results. «We deliver

a good operational result for the quarter thanks to improved performance in most of our businesses. Maersk Line has made strong and consistent progress and is now an industry leader in terms of profitability,» asserted Group CEO Nils Smedegaard Andersen.

The Group delivered a profit of USD 856 million (USD 965 million) and a return on invested capital (ROIC) of 7.4% (8.9%) for Q2-2013

Maersk Liner business made a profit of USD 439 million (USD 227 million) and a ROIC of 8.5% (4.6%). The significant improvement in the financial performance was achieved through lower costs. Volumes increased 2.1%, average freight rate decreased 13.1% and total cost per FFE (Forty-Feet Equivalent unit) decreased by 12.7%. The cost decrease was mainly driven by vessel network efficiencies and lower bunker price.

Ane Maersk McKinney Møller with top crew members of the Mærsk McKinney Møller at the Daewoo Shipyard in South Korea

20 September 2013

Exclusive Interview : Al Futtaim Logistics Relocations & IMD

The Jebel-Ali headquartered Relocations & International Moving Division (IMD) of Al Futtaim Logistics was set up in 2009 to provide a full range of advanced, special-ized and complete solutions from origin to destination for local and international lo-cations; pet relocation; vehicle transporta-tion; comprehensive insurance facilitation; storage, warehousing and large and com-plex office movements.

The Division, an independent and stand-alone Department within the wider Al Futtaim Logistics network, has since at-tained considerable success in this vertical and complements the expertise in freight forwarding and other customer-focused services of Al Futtaim Logistics. Its superior services have been much lauded and the Division has been the recipient of a string of credentials & testimonials from corpo-rate clients and individual customers.

“The Department manages many dif-ferent aspects of the relocation process including Air Freight, Sea freight Import, Export and domestic moves, not only of household goods but of classic and super cars. Having a team of experienced and trained personnel allows our department to be flexible in its approach and tailor make relocations to individual needs com-bining a corporate programme to work with businesses and individuals” affirmed Carolyn King, the Scotland-born Business Sector Manager for Al Futtaim Logistics’ Re-

locations Division which she joined in July 2010.

The LINK met with Carolyn King for an ex-clusive interview at her busy office in Jebel Ali where she spoke expansively about the company, the growth and her vision of the future.

The LINK: Please give us an overview of the genesis of the Relocations & Interna-tional Moving (R&IM) Department with the Al Futtaim Logistics framework?

Carolyn King: The Relocations & Inter-national Moving (R&IM) Department of Al Futtaim Logistics is multi-faceted and deals

with a wide range of transfer and relocation services and movements—local, regional and international, of not only household goods and personal effects but also of pets, exclusive cars and office movements. Our services are available not only to employ-ees and associates of the Al Futtaim Group but also of our ever-widening external cli-ent base.

We are responsible for the entire gamut of operations from collection, appropriate packaging, transportation and eventual safe-and-sound delivery at the desired des-tination. Included also in the portfolio of services we offer are sea-air-land transpor-tation documentation, insurance and cus-toms and airport clearances with carefully-selected overseas partners for international transfers and movements. Our dedicated, professional team monitors movements every stage of the process.

Q: How significant is the R&IM Depart-ment within Al Futtaim Logistics?

A: We are an important division within Al Futtaim Logistics and complement the services offered by the latter. We were ini-tially set up as an in-house division to assist with the relocation of company personnel but we have since come a long way and acquired a solid reputation in the market-place for the quality of our services offered.

Q: What specifically does the R&IM De-partment do for corporate & individual clients availing of the company’s services?

A: Our corporate programme is designed to work with businesses to offer value add-ed relocation services, assisting transferees and their families to make the transition from one country to the next as easy as possible, freeing up time for the important matter of settling in.

Our full range of additional relocation services within UAE can be tailored to suit each individual and include look-see visits (to say beaches, golf courses & some other areas of interest) are designed to enable in-dividuals and families to make an informed

The much acclaimed Relocations Division of Al Futtaim Logistics on road to growth

FAIM (FIDI Accredited International Mover) certifiedFIDI-FAIM is an accreditation programme providing international movers the

possibilitytohaveaperiodicindependentassessmentoftheircross-borderandinternational moving activities. The main objective of FAIM is to provide a world-wide common standard for managing and performing the international moving servicesinauniformed,quality-mindedandeffectiveway.

Al Futtaim Logistics Relocation Division recently obtained the FIDI Plus accredi-tation having undergone a stringent audit independently conducted by Ernst & Young. Now the Division joins an elite band of only eight companies to be awarded withthisprestigiousaccreditationafterhavingsuccessfullypassed16qualitypa-rameters.

Carolyn King

21September 2013

Exclusive Interview : Al Futtaim Logistics Relocations & IMD

decision whether to accept a proposed as-signment; an orientation service designed to provide sufficient information on the lo-cal area to enable the transferee to settle in as quickly as possible.

Also offered is a home search service to assist with finding a suitable home accord-ing to your needs and within your compa-ny’s relocations policy and a school search service, as we recognise that securing a po-sition in a good school is one of the most important factors on the relocation process for families relocating with children.

Q: How did the R&IM Department faring and what is your forecast for the remain-der of the year?

A: We are faring well thus far and as we acquire a higher profile in the market and get better known in the industry, our busi-ness has been growing satisfactorily and in line with our expectations. The second half of 2013 holds promise and we hope to close strong.

Q: Please tell us more about the FIDI-FAIM accreditation and the implications of this recognition?

A: We are naturally delighted with our re-cent acquisition of FIDI FAIM ISO, the high-est level quality certification that can be achieved within the international moving industry. FIDI (Fédération Internationale des Déménageurs Internationaux) is an independent global organisation repre-senting fully qualified professional interna-tional moving companies. FIDI’s FAIM and FAIM ISO independently audited accredita-tions are the primary quality standards that

international movers can achieve. To date this recognition has been awarded to only a select group of companies worldwide and only eight in the UAE.

This accreditation allows us to tie-up with the best partners globally and there-

fore facilitates consistency and standardi-zation. This implies that with Al Futtaim, our clients can be assured that they are dealing with the finest services provider in the relocation and international move-ments arena.

VehicleMovementAdding vehicle movement to its

portfolio has allowed the exploration of new markets and support for other Al-FuttaimGroupcompanies.TheRe-locations Division works with own-ers of Ferrari, Porsche, Lamborghinis, Rolls Royce, other classic and antique cars to export and re-import super-cars to and from the USA, Italy and UK with additional importation and ex-port of distinctive cars for individual private owners.Carolyn King wth members of the team

Presentation of the FIDI FAIM ISO certification

A section of the crew of Al Futtaim Relocations & International Moving Division

22 September 2013

Blue Ocean Academy: Convocation Ceremony

The Middle East has witnessed a spurt in the popularity of internationally certified courses, said Dr. Leroy McGraw, President of the prestigious US-based International Purchase and Supply Chain Management Institute (IPSCMI). He was speaking at the 22nd convocation ceremony of UAE’s lead-ing management training institution, Blue Ocean Academy in Dubai recently.

“Globally, the Gulf countries are heading the market growth in international certifi-cation,” revealed Dr. McGraw while deliver-ing his keynote speech titled “Why Global Companies Need Certified Professionals.” The glittering convocation ceremony was held at the Dhow Palace Hotel, Dubai and well attended by students, patrons and fac-ulty members.

More than 300 students were conferred international certificates from apex certify-ing bodies like the American Certification Institute, International Quality Federation, Knowledge and Human Development Au-thority, Dubai and the International Pur-chase and Supply Chain Management In-stitute, Delaware, US, during the occasion.

“Certification builds business compe-tence among individuals, employees and within organizations. In today’s increas-ingly competitive world, professionals are seeking international certification to en-hance employability while keeping pace with the latest market trends,” highlighted

Sathya Menon, Executive Director, Aca-demics, Blue Ocean Academy.

Blue Ocean Academy is IPSCMI’s primary alliance partner in the Middle East. “Blue

Ocean has been unstinting and persever-ing in its marketing efforts to make IPSCMI and its certifications known and respected throughout the Middle East. IPSCMI could have no better alliance partner than Blue Ocean,” highlighted Dr. McGraw.

“Blue Ocean has displayed superiority in every respect. Instructors and courses have consistently earned the highest evalua-tions from students and certification candi-dates. It has been a matter of privilege for the IPSCMI to associate with Blue Ocean and we are looking forward to reaching new milestones in the future,” he added.

“The journey towards educational ex-cellence has largely been punctuated by professional growth and success: the cour-age, commitment and conviction that our students have displayed at the workplace bears testimony to the Blue Ocean training and grooming,” averred Blue Ocean Market-ing Director, Abdul Azeez.

“Blue Ocean knows what the Middle East training and certification markets need and want. IPSCMI has in the past collabo-rated with Blue Ocean in developing new programs suggested by Blue Ocean and believes this process will continue in the future. IPSCMI will also propose to Blue Ocean programs which other regions of the world have found appropriate and re-warding to students and candidates,” Dr. McGraw added.

300BlueOceanStudentsreceiveinternationalcertificates at grand convocation ceremony

“Certification builds business competence among individuals, employees and within organizations. In today’s increasingly competitive world, professionals are seeking international certification to enhance employability while keeping pace with the latest market trends.”

Dr. Leroy McGraw & Sathya Menon pose for a group picture at the convocation ceremoney

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24 September 2013

Feature/Interview : Gati Limited

Taking a cue from its Sanskrit derivative meaning swiftly or destination, Gati Lim-ited, the pioneering express distribution & supply chain solutions and services pro-vider in India since 1989, has rapidly trans-formed the landscape of the logistics in-dustry in the country. It has accomplished this with many path breaking revolutionary initiatives that have catapulted the com-pany into the frontlines of the organized lo-gistic industry in the nation. With a current annual turnover of USD $ 210 million, Gati, headquartered in Secunderabad, Andhra Pradesh, is now one of the industry leaders in its sector, offering an integrated express distribution and customized supply chain solutions including cold chain transporta-tion solutions, warehousing, international freight forwarding, customs clearance, e-commerce and coast-to-coast services to customers across diverse industry verticals, setting new benchmarks in quality of serv-ice and customer satisfaction.

Gati›s advantage of seamless connectivity across air, road, ocean and rail has resulted in a multitude of offerings to the custom-ers, unmatched in the industry. Gati, with sophisticated mechatronic (a blend of me-chanical, electrical, and software design) warehousing facilities across India, oper-ates world-class a fleet of 4000 vehicles on road including refrigerated trucks, marine container vessels and over 7000 plus busi-ness partners over the length and breadth of the country. A strong brand name in In-dia, Gati, with a current workforce of more

than 3,500 employees, has a strong market presence in the Asia Pacific region and the 7-nation SAARC block (South Asian Associ-ation for Regional Co-operation) countries. Presently, Gati has offices in China, Singa-pore, Hong Kong, Thailand, Nepal and has plans to foray into other markets

Gati was also the first to run the millen-nium parcel express train in October 2001 between the country’s commercial capi-tal Mumbai and the eastern metropolis of Kolkata. The initiative to run a parcel ex-press train between Kalyan (near Mumbai) and Guwahati, the capital of the far North

Eastern state of Assam was again taken by Gati – thereby providing a classic example of PPP (Public Private Partnership).

Gati›s shipping division, Gati Coast-to-Coast based at Chennai, with two decades of experience in the industry has many firsts to its credit: first in operating direct service to Yangon; first in operating a di-rect container service from Ranong Port, Thailand; and the first in operating direct container service from Penang, Malaysia. Gati Coast to Coast today has a tonnage of 43,581 DWT.

In a ground-breaking development in February 2012, the board of Gati today ap-proved a proposal to form a joint venture (JV) with Japanese global logistic service major Kintetsu World Express (KWE) under the name ‘Gati-Kintetsu Express’.

Mahendra Agarwal, Founder & CEO, Gati Ltd and an International Adviser to SCLG spoke exclusively to The LINK on the origins of the company and an update on develop-ments and future course with him at the helm.

The LINK: From its genesis in 1989, en-capsulate, in your own words, the phe-nomenal success of Gati to its current mega status, in its less than quarter cen-tury history?

Mahendra Agarwal: Having spear-headed express distribution services in India in 1989, Gati was the first logistics company to offer door-to-door services for packages across India. Since then Gati has introduced several innovative service offerings and takes pride in playing a key role in developing the Indian cargo indus-try. From the very launch of the door-to-door cargo management service way back in 1989, Cash-on-Delivery was introduced for the first time in India by Gati, Desk-to-Desk services to meet the price sensitive customer, Centralized Call Free No., Gati Academy, Integrated Web-based shipment management system and other introduc-tions have now set industry bench marks. Q:Pleaseamplifyonyourpartnership

with KWE?

Gati races to the fore

Mahendra Agarwal

Founder & CEO, Gati Ltd

25September 2013


A: Kintetsu World Express is a global pro-vider of logistic services and solution to its world-wide clients. Established in the year 1970, KWE has a total of 308 offices in 194 cities in 32 countries overseas. KWE provides comprehensive one-stop services and solutions that incorporate airfreight forwarding, Ocean freight forwarding and a full-range of logistics services.

As a strategic partner, KWE brought to the table both financial and strategic ben-efits . The newly formed JV company GATI-KWE has imbibed KWE’s global operational expertise in 3PL and warehousing services, resulting in improved operational efficien-cy, reduced costs and increased profitabil-ity. GATI-KWE, in a year’s time, has signed up with numerous KWE’s clients with glo-bal repute including especially Japanese customers for India centric distribution and supply chain services. Q: GATI-KWE won Express Logistics

Supply Chain Award for Best LogisticsProvider of the Year-Road 2012 at 6thExpress, Logistics & Supply Chain Con-clave. What has been the outcome of this

recognition?A: We are extremely honoured to receive

the award. We have received the Best Logis-tics Provider of the Year (Road) 2012 Award at the 6th Express, Logistics & Supply Chain Conclave for the second time in a row. This recognition is a testimony to the quality of services we provide and has further ce-mented our place as one of the major logis-tics players in the country. Q: Gati Ship and International Ship-

pingLogistics FZE recently (April 2013)launched a new Coastal Container Serv-ice between North and South India. What prompted you to initiate this service and how has the service been faring thus far?

A: Gati Ship launched a new Coastal Container Service between North India and South India covering the seaports of Kandla, Mundra, Cochin. This new service is called ‘ISL (International Shipping Logis-tics FZE)-Gati Express Coastal Service’. The service successfully completed its maiden voyage on 17th June, 2013 from Kandla (Gujarat) to Vallarpadam Port (Kerala).

The West Coast of India is a burgeoning

market that is servicing the requirements of net consumer states like Kerala. We saw a profitable opportunity and decided to go in. Our decision was validated by the fact that we were able to join hands with a re-puted partner in ISL and the fact that the service is running at full capacity within one and a half months since commence-ment. We foresee growth in this trade and will deploy another vessel in this sector during this financial year.Q:HowhastheGatiKausar(ColdChain

Solutions) Division been performing?A: Gati Kausar the cold chain arm of Gati

is the longest established cold chain com-pany in India with expertise that spans over 26 years in the cold chain distribution busi-ness. Gati Kausar registered a growth of 14 per cent YoY (year-on-year).

In the last quarter Gati Kausar intro-duced customized chilled vehicles in Delhi for a dairy product customer. It is also pro-viding secondary distribution for in-city operations and customized solutions for customers who require real time tempera-ture control, multi temperature facility ve-hicles with humidity control, door censors and moveable partitions. 50 per cent of the vehicles are equipped with the GPS facility. For the year, 65 refrigerated vehicles have been brought on road now taking the total fleet size to 213.Q:PleasetellusmoreaboutGatiInfra-

structure Limited (GIL) promoted by you and the power plant projects launched in the Indian state of Sikkim?

“Kintetsu World Express is a global provider of logistic services and solution toitsworld-wideclients.Established in the year 1970, KWE has a total of 308officesin194citiesin32countriesoverseas.KWEprovidescomprehensiveone-stop services and solutions that incorporate airfreight forwarding,Oceanfreightforwardingandafull-rangeoflogistics services.”

A Gati delivery van against the backdrop of the majestic, British-era Chhatrapati Shivaji Terminus (CST) in Mumbai.

26 September 2013


A: Gati Infrastructure Limited (GIL) is a subsidiary of Amrit Jal Ventures Ltd. GIL commissioned its first 110 Mega Watt hy-dro electric power plant in Sikkim in agree-ment with the State Government of Sikkim to implement three hydro power projects on a Build, Operate, Own and Transfer basis (BOOT). The first project– 110 Mega Watt Chuzachen hydro project on Rangpo and Rongli rivers has been commissioned and started producing and selling power. This is the first IPP (independent power project) in hydroelectric power sector in the state of Sikkim and the seven sisters of North East. The plant is directly connected to the Central Transmission Utility (National Grid) through a 24 km dedicated transmission line and will be able to deliver power across the country.Q:PleasetellusaboutGati’sinitiatives

in the CSR arena?A: We at Gati strongly believe in being

a socially responsible corporate. CSR is an integral part of our culture and we are com-mitted to fulfilling our responsibilities as a member of the society and community. Gati and its group companies in various capacities contribute towards the field of Education, Community and Environment. Our key initiatives have been providing as-sistance in constructing schools, helping natural disaster victims in sustaining their livelihood, supporting the cause of green environment and much more. Q: In 2012 Gati ‘Connect’—www.ga-

ticonnect.com, an on-line web store tocater to the growing e-Commercemar-ket, was launched. Please expand on this Gati offering and how has this division

been faring?A: Gati Connect is Gati’s very own online

shopping portal that is open for vendors to register and start selling their products. Unlike other online stores here it is the vendors that get to maintain their own product catalogue and decide the prices of the products listed. The success of any E-retailer is largely dependent on its logistics capability and at Gati Connect it is Gati, the pioneer in express distribution that han-dles the logistics of the online store, thus ensuring a full proof system.

The online portal is open to all vendors big or small, regional or national, all they have to do is get registered and they will get a page were they can start selling their products/managing their catalogue. Q:Asawell-establishednameinIndia,

what are your plans for expansion inside and outside of the country?

A: We would like to set up partnerships

with local regional players to increase our distribution footprint in the regions. We have seen a lot of growth in our transport solutions business which is predominantly rail based using dedicated parcel trains. Through our various subsidiaries we are able to provide solutions across the supply chain which we want to grow this segment.

E-commerce reach is built and needs a continual capacity expansion. This is an area where we will invest in automation at the hubs. Our service levels for heavier parcel deliveries are best in the country. We have an unmatched reach and COD capa-bility which can be a challenge for many service providers. We invested in another 126 trucks in express and 36 in cold chain. We have taken additional 300,000 sq. ft. of space around the country for various sites.

The global expansions plans are through our JV Partner›s reach and network. We have at our disposal the network of KWE who has a presence in 31 countries and is highly regarded as a top service provider in the freight forwarding business. Our own owned network, we have limited it to the countries we currently operate in the Asia Pacific region. Q:WhatarethechallengesforGatigo-

ing forward?A: The logistics landscape is changing

in India, and companies like Gati will con-tinue to face challenges in adapting to new customer service requirements and ensur-ing that we have the best people with us along for the journey. We expect to see

Power Players: New Appointments

27September 2013

The Board of Directors of Kuehne+Nagel International AG recently announced, with immediate effect, the appointment of Dr.

Detlef Trefzger as the Company’s new CEO, under the close supervision of the Chair-man of the Nomination and Compensation Committee, Dr. Joerg Wolle.

Prior to joining Kuehne+Nagel, Dr. Trefzger was member of the Executive Board of Schenker AG, Essen, Germany, from 2004 to October 2012. He held worldwide responsibility for the business unit Contract Logistics & SC Management, and most re-cently he additionally was in charge of Glo-bal Airfreight and Global Ocean freight.

Dr. Detlef Trefzger started his career at Sie-mens AG. In 1994 he moved to the logistics

sector, initially as Principal at Roland Berger, Munich. In 1999 he was appointed CFO and member of the Executive Board of Schenker & CO AG, Vienna, Austria.

Karl Gernandt, Chairman and interim CEO of Kuehne+Nagel International AG, commented: “We are convinced that De-tlef Trefzger will maintain the continuity of leadership and direction of our Company.”

With approximately 62,500 employees at more than 1000 locations in over 100 countries, the Switzerland-headquartered Kuehne+Nagel Group is one of the world’s leading logistics companies.

TNT Express announces Kuwait appointment

Dr.DetlefTrefzgernamedthenewCEOofKeuhne+Nagel

Dulsco, the leading regional provider of total HR and waste management solutions, recently announced the ap-pointment of S. Balakumar as its new Managing Director, following the retire-ment of his predecessor Prakash Ma-hadalkar. Balakumar has been tasked to lead the over 6000-employee compa-ny’s expansion strategy across the GCC.

Dulsco Chairman, Abdul Aziz Mo-hammed Khan Abdulla, stressed that the new promotion underlined the 78-year-old company’s continuing am-bition to promote people within its ranks by grooming them to take on larger responsibilities. This is one of the key aspects that make Dulsco a ‘Great Place to Work’. Dulsco has been being given the ‘Great Places to Work For’ Award

by the ‘Great Places To Work For Insti-tute’ consecutively for three years.

Balakumar, who earlier served as Director, Dulsco HR Solutions, has worked with the company for 10 years and has been responsible for position-ing Dulsco’s HR Solutions as the lead-ing human resource outsourcing com-pany in the UAE and Qatar.

Balakumar joined Dulsco as Man-ager, Manpower Services in 2003; he was promoted as the department’s General Manager in 2005 and went on to become the Director – HR Solu-

tions in 2008. His brainchild, the Dulsco Classic Golf Tournament, has evolved as the region’s highly awaited annual sports initiative uniting the region’s business leaders.

S.BalakumartakesoverasnewDulscoChief

TNT Express has appointed Ahmed Ibrahim as its Country General Manager for TNT Express in Kuwait. This new appointment has been made to further support TNT Express’ growth in the country and to support the company’s contin-ued expansion in the Middle East market.

Ahmed has over ten years experience in the logistics industry, having been responsible for developing sales and marketing strategies, trade lane development and product place-ment. His strong commercial background is in working with both local and regional custom-

ers adding value to customer supply chains. Ahmed joined TNT Express as the National Sales Manager and has proved himself in a short span of two years with TNT Express. In his new role Ahmed will be fully responsible for TNT’s opera-tions in Kuwait.

“Ahmed brings with him a sound commercial understanding of the Express business and is well set to propel TNT Kuwait towards contin-ued growth over the next few years,” stated Bry-an Moulds, Managing Director for TNT Express Middle East.

29 September 2103

Guest Feature

Supply chains have developed, evolved and morphed into complex ecosystems with multi-layered inter-dependencies, frequently spanning the globe, crossing time zones, cultures and languages.

At the same time, the traditional growth consumer markets in Europe and North America are experiencing varying degrees of economic, social and political uncertainties, which intensify the continual challenge of forecasting demand and result in high degrees of variability in our supply chains, driving the need for improved visibility.

Visibility-essentialbutelusiveIn order to sense a problem it must be

visible. Developing visibility is a process combining technology and partnership. Technology is at such an advanced stage that we can see and measure virtually every aspect of the supply chain. To be

used effectively, however, the available technology needs to be shared with openness and trust amongst partners throughout the supply chain ecosystem.

Providing Visibility can and will provide companies with early warning systems that alert the relevant participants when events are deviating from the plan, enabling adjustments to be promptly implemented, thus empowering the supply chain ecosystem to increased performance levels.

Hence, successful multi party collaboration becomes critical for success. Collaboration includes the open and cooperative sharing of information on a needs-to-know basis with constituent partners throughout the ecosystem - for the overall efficiency and performance of the supply chain, without compromising proprietary data.

For successful collaboration, over and above technology integration, it is important to have managers representing the partners to work diligently in building and nurturing organisational relationships, such that the managers are individually and collectively responsible and accountable for collaborative projects. These relationships need to be maintained throughout downturns so that when the upturn arrives there is still a strong bond between companies.

The Challenge AheadGlobalisation continues to accelerate

and introduces additional strains on supply chain performance. The increase in complexity is further expanded as dynamic supply chains involve multiple stakeholders and this is further driving the essential need for a collaborative approach. Most significantly, it is demanding new mind-sets to shift beyond our traditional comfort zones and deploy more trust amongst supply chain partners and extended stakeholders, in order to improve visibility and thereby optimise performance.

IBM’s Global Chief Supply Chain Officer (CSCO) Study identified Visibility as the biggest single challenge impacting their supply chains, with 70% of over 400 CSCOs from 25 countries saying that their inability to ‘see’ information was inhibiting their ability to act. They reported struggling with overwhelming and fragmented data as well as lacking the ability to make sense out of the information.IBM CSCO Study: Percentage who

report this challenge impacts their supply chain to a significant or very significant extent

The threat of information blind spots is understood by supply chain leaders, but they were not confident or

MarkMillarMBA,GAICD,FCILT,PMHKLA

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Guest Feature

28September 2013

optimistic that they are leveraging their valuable information for meaningful competitive advantage. Only 16 per cent of respondents reported being effective at integration and enabling visibility of information across the supply chain with their external partners.

To make matters worse, whilst visibility was the top challenge, it was by no means the top priority. There was little evidence that organizations have programs and activities in place to remedy the lack of visibility. Even successful deployment of technology does not necessarily help the situation - frequently resulting in an explosion of data, without generating much additional information. The issue is often not about having too little information, but rather too much.

Whilst technology can provide the conduit for increased information visibility, the bigger challenge is that organisations need the courage to step outside of their comfort zones to truly collaborate and openly share information, adopting a more trusting approach amongst customers, suppliers and even competitors.

RelianceonQualityDataEven when we have the technology

engines seamlessly integrated and synchronised, there will still be challenges in providing clean fuel. To successfully extract information upon which decisions can be made, it is essential to focus on maintaining high levels of integrity across all three key attributes of high quality data:

• Accuracy: The data must be accurate in order to provide any sense of meaningfulness; recall the budget review meetings where different parties have different numbers!

• Completeness: Missing data can and will distort the information derived and can therefore impact supply chain decisions as badly as incorrect data.

• Timeliness: Data that arrives too late may as well be data that is missing; in the world of high velocity supply chains, the need-for-speed applies to bits and bytes, as much as it applies to cartons and pallets.

ConclusionFrom the organisational relationships to

the technological interfaces, integration of

all the supply chain participants is essential to enable the visibility required to empower efficient and effective performance in the execution of your supply chain. Once again this reinforces the need for successful collaboration between and amongst the multiple business partners coexisting within the supply chain ecosystem. A ‘single version of the truth’ is the elusive goal, whilst being ‘only as strong as your weakest link’ is the harsh reality.

Mark Millar provides value for clients with independent

and informed perspectives on their supply chain

strategies in Asia. His series of ‘Asia Supply Chain Insights’

presentations, consultations, seminars and corporate

briefings help companies to improve business operations,

plan more effectively, and increase the efficiency of their

global supply chain ecosystems. Clients have engaged

Mark as Speaker, MC, Moderator or Conference Chairman

at more than 300 events in 20 countries. The Global Institute

of Logistics recognised him as “One of the most Progressive

People in World Logistics”. Mark, a Visiting Lecturer at Hong

Kong Polytechnic University, also serves as the Asia Pacific

Regional Director for SCLG in addition to serving on the

advisory boards of several leading organizations. Mark can

be reached at [email protected]

Organized and hosted by Mark Millar, the latest networking function for the Supply Chain and Logistics Professionals (SCLP) community was held in Hong Kong and sponsored by JOC TPM Asia and Logistics Executive. The topic of discussion was ‘The Fourth Quarter Outlook for Shippers & Logistics Providers’ and the event attracted over 50 supply chain and logistics industry professionals.

The keynote address was presented by guest speaker Sunny Ho, Executive Director of The Hong Kong Shippers Council. Those assembled included Greg March, Asia Director, JOC TPM Asia; Darryl Judd , COO, Logistics Executive; Charlie Wellins, Sr. VP—Supply Chain Solutions, CEVA Logistics; Alan Au, Vice President Commercial, China Merchants Bonded Logistics; Claire Quigley, The Women›s Foundation, Hong Kong; Isabelle Riff, Business Development Exploration

& Production, Dow Oil & Gas Europe; Wai-duen Lee of ICF-GHK and Ivan van Eetvelt of Rhenus Logistics. The event

was endorsed by SCLG and the next in the series of events will take place on Wednesday, 18 September 2013.

MarkMillar-convenednetworkingeventdrawstopindustryprofessionals

30 September 2013

Expert Article

While consumer demand is usually fairly stable and relatively easy to predict, SKU sales fluctuate wildly in most companies for several reasons; leading to a failure to fully tap market demand and lost profit opportunities. This problem has intensified with increasing length of supply chains and lead times.

Aggregate versus SKU management

Meeting aggregate targets does not reflect true sales potential, as SKU demand-supply mismatches mean lost demand and lost profits. At the aggregate level, sales fluctuations across SKUs cancel out, hiding the problem at SKU levels. This is manifested in below optimal service-levels, stock outs, excessive inventory, and large forecasting errors at the SKU level.

Problem indicator and proofThe extent of this can be easily obtained

by measuring the fluctuations in the SKU sales, say for the past 12 months. If these fluctuations, as seen graphically or measured statistically, do not reflect demand fluctuations in managerial judgment, then there is a problem which could be caused by several disconnects. See graph for the thus caused stock-outs and excessive inventory.

Importance of visibility across the supply chain

The key disconnect is that most manufacturers and distributors are cut off from consumer demand by intermediary downstream supply chain partners. They must instead work for their planning and forecasts with “demand” from their immediate downstream partner (distributor, wholesaler or retailer), which is somewhat removed from actual consumer demand, leading to sales being out of sync with demand within supply chains. Large lead times do not allow for sufficient corrective turnaround time.

Correction: Managing with varying visibility

The solution lies foremost in creating greater visibility in the supply chain by incorporating stocks/sales of downstream supply chain partners. Where such data is not available, estimates must be made – any estimate is better than remaining in complete darkness. Focussed estimates can easily do the job, as long as made with some effort and thoroughness (e.g. retailers’ stocks, if unavailable, can be established via sporadic retail audit or via an esetimated wholesalers’ stock depletion rate etc.).

Key data more important than technology

Without incorporating this data into making forecasts, no software algorithm can

deliver demand-sales synchronization and forecast accuracy. In particular, common generic time series forecasts are useless in face of wildly fluctuating sales data, as any statistics expert will testify, and most users know from their experiences.

Other causes for sales-demand & demand-supply mismatches

The availability of raw data from downstream partners, however, is necessary but not sufficient, as demand-sales variation has other causes as well. The undesirable ones need to be eliminated, e.g. artificial spikes resulting from sales target deadlines and the lack of planning discipline (last minute sales orders, sudden stock liquidation, etc.), by improving the forecasting/planning business processes. Acceptable causes like price/promo effects, order batching, seasonality etc, require that their impact be established and incorporated into sales planning & forecasts as parameters.

An intelligent system Finally, the data needs an intelligent sales

(not demand) forecasting system with appropriate crunching of raw data reflecting SKU/category hierarchies, employing company business logic and SKU parameters (price-promo responsiveness, safety stocks, tolerance levels etc.) . Targets need to be

Synchronizing Sales with Demand for Profit Maximization

The first in a series of articles on a wide-ranging spectrum of industry subjects by Raman Suri, an accomplished Supply Chain Forecasting Expert and economist, will be followed up with a series of expert contributions on the issues & challenges related to SC Planning and Forecasting. Each of these issues will be discussed in webinars and planned seminars convened in Dubai organized by SCLG. Those interested in attending should write to [email protected] Any queries, comments or observations on demand / sales planning and forecasting can also be sent to this e-address marked for the author’s attention—Editor

By Raman Suri (Supply Chain Planning & Forecasting Expert, [email protected])

Expert Article

31September 2013

set so that they not lead to artificial spikes. Further, there may be margin opportunities in volumes, and it may be more appropriate to set targets by margins than volumes.

Lean system The system must be lean, as data overload

can be self-defeating if it overwhelms the planners, forecasters and decision makers. Important is to prioritize by margins rather than comprehensive coverage. Most companies will find that 20% SKUs deliver 80% margins – so better to have a sharp focus on 20% than lose time & energy on chasing the unimportant 80% to the detriment of focus on margins and profits.

Leveraging in-house IT toolsMost existing in-house planning tools

may be sufficient to do the job, provided they are leveraged properly, and often new software is not necessary. The thumb rule is that the system should be as large as can be conveniently handled in Excel. The relationships and business logic can be eminently addressed in Excel, as well as viewed in graphs, which are much better for eye-balling plans & forecasts rather than numbers. Other desirable features

like a multi-user facility can be added on later. A spreadsheet allows the system to develop in stages without the risk of failure from over-ambition (or unclear specs) and has the flexibility to incorporate company specific issues (the bane of generic software systems).

No silver bulletsAs should be obvious, IT is not going

to provide that silver bullet to solve what is essentially a management issue. The first need is for a diagnosis. Subsequent treatment/solution can be on any IT platform for supply chain and sales planning. Software is not going to determine the success (though will make a contribution) for hardly anyone can argue that the problem exists and persists for “lack of appropriate software”.

The role of toolsA tool can only be as good as the people

using it. Having the best golf clubs does not help one’s golf game (only a good swing can leverage good golf clubs), though equipment and IT companies will tell you differently. If businesses have not understood and analyzed their sales-

planning/forecasting issues, processes, disconnects and parameters – they will not be able to leverage their IT tools, and only struggle with “one size fits all” tools. “Black box” systems lacking transparency will never work if users do not understand their functioning and thus will never have confidence in them -- particularly if they have not any track record of delivery either.

Solution transparencyTransparency can be established only after

understanding and analyzing the issues. This is not difficult and can be done internally, but it takes some dedicated time, effort and systematic thinking as distinct from fire-fighting. Cross functionality of demand & supply issues means that all relevant process stakeholders (sales, supply & finance) must be represented in the process as well as the solution finding committee. Only after such clarity can a solution be put in place.

Starting point: measuring sales fluctuations

The starting point is simple, and this applies to all companies. They must first measure fluctuations in SKU sales - see graph. If the companies themselves deem these fluctuations not to reflect demand, then clearly there is a problem. Demand is being lost, inventory carrying costs are excessive, and profits are not to full potential. Sales fluctuation measured, its causes need to be established, and only their elimination can lead to sales-demand synchronization to maximize profits & profitability.

Raman Suri is a forecasting and supply chain planning expert and an economist. He has 27 years experience in forecasting, planning and developing with Gulf corporations (Lipton Tea, Reckitt Benckiser, Emirates Airline and Panasonic / Al-Futtaim among other blue chip companies). His work on sales forecasting integrates demand forecasting and supply planning to enable maximum sales forecasting accuracy—bridging the gap between statistical theory & business practices, to avoid the pitfalls of uncritical application of IT & statistical techniques, as well as the pitfalls of not applying any at all.

Sales Demand StockOut Excess Inventory 30 115 85 80 75 5 15 100 85 145 90 55 155 95 60 80 105 25 215 110 105 55 95 40 155 105 50 180 125 55 50 95 45 40 90 50 1200 1200

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Deman

AD TO COME

DHL promote Russia, CIS trade lanes

33July-August 2013

Senior DHL executives and members of the Russian Business Council met recently to discuss the impact and importance of Russian trade lanes to customers in the UAE. The latest event in its ‘Partners in Trade’ series, the world’s leading logistics company brought together partners and customers from across the UAE that have an invested interest in trade with Russia. It provided DHL with a platform to demonstrate its continued efforts in facilitating and capitalizing on regional trade lane relations and partnerships for inter-country economic development.

With over 150 offices (stations, agencies and service points), 250 DHL flights to and from the capital, coverage in 850 Russian cities and given that trade and economic activity is reflected by the demand for transport and logistics services, DHL’s presence in Russia is a key contributing factor to the growth of investment and economic development between the two nations.

The event, which took place at the JW Marriott Marquis Hotel, was hosted by Frank-Uwe Ungerer, Country Manager for DHL Express and Adrian Marley, the visiting Managing Director, DHL Express, CIS and South East Europe. It was attended by more than 25 high profile DHL customers including Dr. Igor Egorov, Chairman of the Russian Business Council, which operates under the auspices of Dubai Chamber, as a guest speaker.

The UAE is a major trade partner of Russia with growing market attractiveness on both sides of the trade lane. With 350 joint ventures in the UAE, 2012 saw a 40% trade growth between the two countries, with an overall worth of $2 billion across many industry sectors.

Frank-Uwe Ungerer, Country Manager for DHL Express in the UAE, commented: “As the International Specialists, we are committed to enhancing trade lane relationships in order to increase global connectivity to benefit the UAE. Our unique series of ‘Partners in Trade’ events is an opportunity for us to showcase our expertise and on-the-ground experience

with our customers where trade in these markets is important to them and their business.”

Dr. Igor Egorov affirmed: “This event explores the tremendous opportunities that exist for improved trade and investment streams between Russia and the UAE. Russians are proud to be one of the largest foreign investors in the United Arab Emirates. The Russian Business Council is working to expand that relationship and encourage

continued bilateral investment. We are working closely with Russian SMEs to help them grow their businesses in the UAE and have been very impressed by the comprehensive services provided by DHL.’

(The October 2013 edition of The LINK will feature the full transcript of the exclusive interview with the Moscow-based Adrian Marley, MD, DHL Express—Russia, CIS & South East Europe ahead of the Conference)

DHLeyeswiderroleinMiddleEast-Russiantradelane

“As the International Specialists, we are committed to enhancing trade lane relationships in order to increase global connectivity to benefit the UAE.Ouruniqueseriesof‘PartnersinTrade’eventsis an opportunity for us to showcase our expertise and on-the-groundexperiencewith our customers where trade in these markets is important to them and their business.”

Frank-UweUngererCountry Manager, DHL Express , UAE

34 September 2013

Logistics & the Law

Piracy on the high seas has become a great source of worry for maritime trade and navies all over the world. When countries are pushing for more trade over oceans and seas, piracy has derailed such moves. These acts of violence have had an exceedingly negative impact on global business and needs urgent action by the global order.

Piracy is a war-like act committed by non-state actors against parties of a different nationality, or against vessels of their own nationality at sea, and especially acts of rob-bery and/or criminal violence at sea. People who engage in these acts are called pirates. The term can include acts committed on land, in the air, or in other major bodies of water or on a shore. It does not normally include crimes committed against persons travelling on the same vessel as the perpe-trator (for example- one passenger stealing from others on the same vessel). The term has been used to refer to raids across land borders by non-state agents.

The English word ‘pirate’ is derived from the Latin term pirata and that from Greek – check. Piracy has existed for as long as the oceans were plied for commerce. The earli-est documented instances of piracy were the exploits of the Sea Peoples who threat-ened the Aegean and Mediterranean in the 13th century BC. These pirates were known to wield cutlasses, a type of sword common in that era. In Classical Antiquity, the Illyr-ians and Tyrrhenians were known as pirates, as well as Greeks and Romans. During their voyages the Phoenicians seemed to have at times resorted to piracy, and specialized in kidnapping boys and girls to be sold as slaves.

Instances of Piracy in India have been recorded in the Vedas. However the most

interesting one was when war came about because of piracy in Sindh. In the 7th cen-tury the new kingdom of Hajjaz launched trade ships to India and to Sindh in par-ticular. But, a ship enroute from Sri Lanka to Baghdad, carrying valuables and some slave girls was looted off Debal. One of the slave girls sent a letter challenging the Cal-iph’s power saying that he could not even rescue them. In response, the Caliph sent a portion of his army to save the slaves. But, the people of Sindh became wary and thought this army was threatening them. This became an excuse for war between Arabs and Sindh.

During the 16th and 17th centuries there were frequent incidents of European piracy against Mughal Indian vessels, especially those en route to Mecca for Hajj. In the 18th century, the famous Maratha Priva-teer Kanhoji Angre ruled the seas between Mumbai and Goa. The Marathas attacked British shipping and insisted that East India Company ships pay taxes of sailing through their waters.

During the 17th and 18th centuries, once pirates were caught, justice was meted out in a summary fashion, and many ended their lives by ‘dancing the hempen jig’, or hanging at the end of a rope. Public ex-

ecution was a form of entertainment at the time, and people came out to watch them as they would to a sporting event today. Newspapers were glad to report every detail, such as recording the con-demned men’s last words, the prayers said by the priests for their immortal souls, and their final agonizing moments one the gal-lows. In England most of these executions took place at Execution Dock on the River Thames in London.

Modern PiracySeaborne piracy against transport ves-

sels remains a significant issue (with es-timated worldwide losses of US$13 to 16 billion per year), particularly in the waters between the Red Sea and Indian Ocean, off the Somali coast, and also in the strait of Malacca and Singapore, which are used by over 50,000 commercial ships a year. A recent surge in piracy off the Somali coast spurred a multi-national effort led by the United States to patrol the waters near the Horn of Africa.

Modern pirates favour small boats and take advantage of the small number of crew members on modern cargo vessels. They also use large vessels to supply the smaller attack/boarding vessels. Modern pirates can be successful because a large amount of international commerce occurs via shipping. Major shipping route take cargo ships through narrow bodies of wa-ter (such as the Gulf of Aden and the Strait of Malacca) making them vulnerable to be overtaken and boarded by small motor-boats. Other active areas include the South China and the Niger Delta. As usage in-creases, many of these ships have to lower cruising speeds to allow for navigation and

Piracy on High Seas

The menace of piarcy in coastal waters and the high seas continues to dog commercial and even cruise shipping to this day. Vassels transiting through the Red Sea and Suez Canal approach (Horn of Africa) and even the ocean yonder are particularly vulnerable to attacks by Somali pirates . The Pirate infested waters off the coast of West Africa and the Straits of Malacca are also a cause for concern. Our legal eagle, Advocate Joy Thattil wades in to provide us his take on piracy on the high seas and its implications for the shipping industry--Editor

Joy Thattil, Maritime Lawyer & Partner, Callidus Corporate & Maritime Consulting (CCMC) Dubai

35September 2013

Logistics & the Law

traffic control, making them prime targets for piracy.

The number of attacks within the first nine months of 2009 already surpassed the previous year’s due to the increased pirate attacks in the Gulf of Aden and off Soma-lia. Between January and September the number of attacks rose to 306 from 293. The pirates boarded the vessels in 114 cas-es and hijacked 34 of them so far in 2009. Gun use in pirate attacks has gone up to 176 cases from 76 last year.

Many nations forbid ships to enter their territorial waters or ports if the crews of the ships are armed in an effort to restrict possible piracy. Shipping companies some-times hire private armed security guards.

Modern pirates also use a great deal of technology. It has been reported that crimes of piracy have involved the use of mobile phones, satellite phones, GPS, Sonar Systems, modern speedboats, assault rifles, shotguns, pistols, mounted machine guns and even RPGs and grenade launchers.

Piracy off the Somali coast has threat-ened international shipping since the beginning of Somalia’s civil war in the early 1990s.On 2010, there were 53 ships hijacked with 1,181 seafarers and 8 were killed. The incidents dropped by more than half from 117 ships hijacked in 2009 due to naval deterrence and ships use of self-protection measures, but Somali pirates are now travelling farther afield.

The pirates get most of their weapons

from Yemen, but a significant amount come from Mogadishu, Somalia’s capital. Weapons dealers in the capital receive a deposit from a hawala dealer on behalf of the pirates and the weapons are then driven to Puntland where the pirates pay the balance. Various photographs of pi-rates in situ indicate that their weapons are predominantly AKMs, RPG-7s, AK47s, and semi-automatic pistols such as the TT-30. Additionally, given the particular origin of their weaponry, they are likely to have hand grenades such as the RGD-5 or F1. Even it is reported in the internet that al-Qaeda funded these pirates from terrorists with cash to purchase weapons. Further Somali pirates allegedly get help from the Somali diaspora. Somali expatriates, including re-putedly some among the 200,000 Somalis living in Canada, offer funds, equipment and information.

Measures to eliminate Piracy The UN Security Council adopted a reso-

lution on November 20, 2008, proposed by Britain, introducing tougher sanctions against Somalia over the country’s failure to prevent a surge in sea piracy. The Soma-li government is struggling for control of the country against an Islamic insurgency and its navy is currently in development, leaving it almost powerless to stop piracy.

There are legal barriers to prosecut-ing individuals captured in international waters. Some countries are struggling to apply existing maritime law, international law and their own laws, which limit them to having jurisdiction over their own citi-zens. According to piracy experts, the goal is to “deter and disrupt” pirate activity and pirates are often detained interrogated, disarmed and released.

Infra Oman 2013

37September 2013

Infra Oman 2013, the Sultanate of Oman’s third edition infrastructure & in-dustry projects exhibition to be held at the Oman International Exhibition Centre, Al Seeb, Muscat, from 30 September to 02 October 2013, is organized by Al Nimr Expo in co-operation with the Oman Min-istry of Transport and Communications and the Ministry of Commerce & Industry.

As infrastructure investments continue to grow, Infra Oman 2013 provides the direct gateway to the opportunities in this sector, enabling companies to play a prominent role in the Sultanate’s indus-trial development. By bringing together all leading companies in the industry, ministry officials, CEOs and other senior managers, Infra Oman will serve as an ideal platform for networking with key decision makers, expanding business contacts and strengthening the partici-pants’ presence in Oman’s vibrant con-struction market.

The exhibition will focus on Construc-tion Requirements, Green & Future Build-ings, Heavy Equipment & Technologies, Hotel & Tourism Projects, Industrial Free Zones, Industrial Manufacturing, Power & Water Technologies, Renewable Ener-gy & Environment, Tools & Equipment’s, Transportation & Logistics, Infrastructure

Projects – Roads, Airports, Railways & Ports – Build & Supply and other Develop-ment Projects.

Salim Omar Al Hashmi, CEO, Al Nimr Expo affirmed, “Infra Oman is the ideal platform for all contractors and develop-ers to meet, thus giving them an opportu-nity to present their projects and achieve-ments and source their requirements. Infra Oman has grown significantly since its debut in 2011, thus establishing itself as the Middle East’s leading infrastructure and industrial projects exhibition.”

Melwin D’Cunha, Managing Director, Al Nimr Expo, commented,: “The event is meant to provide local and international

companies the opportunity to introduce a range of their products, equipment, tech-nologies and services to their target cli-ents - the decision makers and top officials of companies in Oman’s vibrant building and construction industry.”

A special highlight of Infra Oman will be the Japanese Pavilion featuring more than 20 companies related to the Industry. The Pavilion will also showcase the traditional Japanese Tea Ceremony at the show. Infra Oman will include country pavilions from Egypt, Germany, Iran, Italy, Turkey, UAE and UK.

Infra Oman is the first and only exhibi-tion in Oman to be BPA audited. The ex-hibition is also enlisted as a UFI member by the Global Association of the Exhibition Industry (UFI), a well-recognized repre-sentative body of the international trade fair sector.

Al Nimr Expo is a well-established ex-hibition organizing company in Oman, comprising an enthusiastic team of young, experienced and dynamic professionals, who have the passion and requisite skills to organize high profile events for prestig-ious exhibitors and clientele. Al Nimr con-ducts high quality and high-profile B2B trade fairs, country specific shows, corpo-rate events, conferences, event manage-ment and festivals.

InfraOman2013spotlightstheSultanateasamajor investor in infrastructural projects

38 September 2013

UASC-HHI Agreement

United Arab Shipping Company (UASC) is proud to announce signing of a vessel building program for some of the greenest and largest container vessels in the world. The order has been placed with Hyundai Heavy Industries (HHI) in South Korea. The order, the largest in UASC’s history, is worth over US$ 2 billion including all options, and features vessels that will be amongst the largest, most technologically advanced and most environmentally friendly container vessels ever built.

UASC hosted a signing ceremony in Dubai where the new construction contract was signed with HHI for five 18,000 TEU vessels and five 14,000 TEU vessels. The order includes options for one additional 18,000 TEU vessel and six additional 14,000 TEU vessels.

The contract was signed by HE Dr. Abdul Aziz Al-Ohaly, UASC Board Director, and by O. H. Kim, HHI President and Chief Operating Officer. The ceremony was also attended by His Excellency Sheikh Ali Bin Jassim Al Thani, UASC Board Director, Jorn Hinge, UASC President and Chief Executive Officer, and Basil Al-Zaid, UASC Chief Financial Officer. Other members of the senior management teams of UASC and HHI also joined the ceremony.

HE Dr. Al-Ohaly remarked, “UASC makes history today with its largest ever newbuilding order. This is a critical step for

the Company to deliver on its long-term growth objectives. In addition, UASC hopes to set new benchmarks for fuel economy and environmental performance.”

HE Sheikh Ali Al Thani commented on the occasion, “With our previous investment in nine 13,500 TEU vessels, we have successfully established UASC’s fleet as one

of the youngest and most environmentally friendly in the world. Today’s order builds on that foundation and takes UASC’s future fleet to the next level.”

O. H. Kim stated that four decades of the strong relationship witnessed container ship size of UASC at Hyundai grow sixteen-fold, in other words from 1,100 TEU to Eighteen Thousand (18,000) TEU.

Jorn Hinge affirmed, “We celebrate yet another important milestone in UASC’s transformation and growth story. With this new order, UASC aims to improve its competitiveness in the key trade lane between Asia and Europe where we plan to deploy the 18,000 TEU vessels. Furthermore, we believe UASC will also improve its position in its other key trades through the deployment of the 13,500 and 14,000 TEU vessels.”

The 14,000 and 18,000 TEU vessels are scheduled for delivery from late 2014 and from the first half of 2015, respectively.

UASC, HHI ink contract for new generation of container vessels

UASC & Hyundai Heavy Industries officials at the signing ceremony in Dubai

NEWS

39September 2013

Etihad Rail, the master developer of the 1200 kilometre UAE national railway network which will connect the seven emirates with other GCC countries, recently confirmed the signing of a Memorandum of Understanding (MoU) with Bertschi, a leading Switzerland-based logistics company specialising in liquid and dry bulk products for the chemical industry.

The MoU which was signed by Nasser Al Mansouri, CEO of Etihad Rail and Michael Baechler, Bertschi Global AG Manager Business Unit Global, will enable Bertschi logistics to use the rail network for efficient and safe cross-border transport of equipment and products such as hazardous and non-hazardous bulk liquid and dry chemicals, Etihad Rail said in a press communiqué.

“The UAE economy is rapidly developing, and modern rail infrastructure is a key component of this development. The MoU with Bertschi is not only in line with our commitment to provide tailor-made solutions to our customers, but also embodies the UAE leadership’s vision to drive the country’s economic growth and development,” he asserted.

“Through our MoU with Etihad Rail, we will be able to grow in alignment with the industries we service in the region, which are also growing, and we will ensure that we are able to provide the most seamless transport experience of our customers’ goods,” Baechler affirmed.

Etihad Rail had so far signed various memos of understanding with many partners including HOYER Global Transport

BV to Support Intra-GCC Logistics, another with Dubai-based Sharaf Logistics and a third MoU with Global Shipping and Logistics (GSL). Also it had signed a MoU with Sharjah Cement Factory, and with Aramex, the global logistics and transportation solutions provider. Moreover, it had also signed an agreement with the Centre of Waste Management—Abu Dhabi and with DP World for the development of an intermodal rail terminal in Jebel Ali Port.

Etihad Rail will be the first national freight and passenger railway network connecting the seven emirates of the UAE. The 1,200 kilometre railway project is estimated to cost Dh40 billion ($11 billion), expected to be completed in the second quarter of 2018

EtihadRailsignsMoUwithBertschi

Etihad Rail, the developer and operator of the UAE’s national railway network, recently announced the signing of a Memorandum of Understanding (MoU) with Dubai Industrial City (DIC) for the development of a rail terminal within the DIC Complex.

Signed by Dr. Nasser Al Mansoori, CEO of Etihad Rail and Abdulla Khalifa Belhoul, CEO of Dubai Industrial City, the MoU specifies the logistics pertaining to the location of the terminal, which will be an important part of Stage Two of the rail network. The agreement will see DIC becoming one of Etihad Rail’s main public freight terminals in the Dubai emirate, and paves the way for the destination to become the centre of non-bonded transport (non-free zone areas) in the Emirate.

Commenting on the MoU, Dr. Nasser Al Mansoori, CEO of Etihad Rail, affirmed: “Etihad Rail is part of a greater vision to drive economic growth and development in the UAE by bringing geographic markets closer together. We look forward to working closely with Dubai Industrial City to develop one of Etihad Rail’s main public freight terminals.”

Dubai Industrial City has had considerable interest from customers in the automotive industry, with companies including Al Rostamani Group, Gargash Motors, Al Habtoor Motors and Al Naboodah Automobiles, where they found the DIC an ideal destination for their logistics service centre and automobiles storage warehouse.

Abdulla Khalifa Belhoul, CEO of Dubai Industrial City, commented: “We are delighted that Ethiad Rail has selected Dubai Industrial City as the location for one of the main stations in the Emirate. The decision is further evidence of the key

strategic role Dubai Industrial City plays as a hub for the manufacturing and logistics industry on both a local and regional scale.

The terminal is to be located within Dubai Industrial City – which, at 55 square kilometres, is the second largest industrial real estate project in Dubai – and will incorporate extensive container, automotive and bulk-handling facilities. The destination boasts close proximity to the UAE’s top hubs the Jebel Ali Port, Khalifa Port and Dubai World Central.

The agreement comes at a time of rapid progress as Etihad Rail prepares to launch rail service on the Habshan-Ruwais

Dubai Industrial City joins Etihad Rail bandwagon

40 September 2013

NEWS

Saudi’sBahriinksdealformaritimeyard project

SABICtobuildSaudicarboncapture-and-useplant

The National Shipping Company of Saudi Arabia (Bahri) has signed a memorandum of understanding with Saudi Aramco and Singapore’s Sembcorp Marine to conduct a feasibility study for a maritime yard project in the kingdom.

A decision on whether to go ahead with the development, which will provide en-gineering, manufacturing and repair serv-ices to rigs platforms, commercial vessels and offshore service vessels, will be made in the next 15 months, Bahri’s statement to the Saudi stock exchange revealed re-cently.

No value or location in the kingdom was

given in the statement, except to say the yard would be a “world class” facility. The study comes after preliminary assessments for the project completed by Aramco and Sembcorp Marine.

Bahri, which is 28 percent owned by the state-owned Public Investment Fund, agreed a $1.3 billion merger with Vela In-ternational Marine in October. The tie-up made it the world’s fourth largest owner of very large crude carriers, or VLCCs. The firm bought Vela, previously owned by Aramco, for $832.75 million in cash and 78.75 mil-lion in new Bahri shares at a price of 22.25 riyals ($5.93) each.

Saudi Basic Industries Corp (SABIC) has hired Germany’s Linde Group to build the world’s largest plant for capturing and using climate-warming carbon dioxide, the Saudi petrochemical giant has indicated. The Unit-ed Jubail Petrochemical Company (UNITED), an affiliate of SABIC, plans to capture around 1,500 tonnes a day of carbon dioxide from ethylene plants and purify it for use in SABIC-owned petrochemical plants in the Kingdom’s Eastern industrial city of Jubail.

The carbon capture and utilisation (CCU) plant will prevent about 500,000 tonnes a

year of the gas which is blamed for global warming from being released into the at-mosphere and SABIC said it could also sup-ply 200 tonnes a day of liquid CO2 to the food and drinks industry.

“It will add to SABIC’s business portfolio of industrial gas products,” remarked Yousef Al-Zamel, Sabic Executive Vice President for the Chemicals Strategic Business Unit. “This is the first of many other similar projects to be executed next year,” he added Carbon dioxide has been pumped into oil fields for decades to boost production, but the result is more carbon being produced.

A global push to reduce the carbon diox-ide build up in the atmosphere, largely as a result of rising industrial activity, has so far focused on carbon capture and storage (CCS) projects to trap the gas underground. Despite more than a decade of research, in-vestment and government funding, there are still no commercial scale carbon storage plants.

The high cost of catching gas emitted by factories and power plants and storing it safely underground has deterred commer-cial CCS projects.

Chinese ship ply new Arctic trade route

A 19,000-tonne cargo vessel is making the first journey by a Chinese merchant ship to Europe via the Northeast Passage, a shortened route that could revolution-ise trade, state media reports.

The Arctic route has become naviga-ble due to global warming melting sea ice and promises to slash journey times by around 12 to 15 days, saving shipping companies and Chinese exporters mil-lions in lower fuel bills and reduced op-erating costs.

A freighter belonging to Chinese ship-ping firm COSCO recently left the north-eastern Chinese port of Dalian and was expected to take 33 days to reach Europe via the Bering Strait and Russia’s north-ern coastline, the official China Daily re-ported.

The SinoShipNews website said the vessel was headed for Rotterdam and was due to arrive on September 11. The new route, which is now navigable for around four months of the year from the end of July, avoids the politically unsta-ble pinch point of the Suez canal, and trims around 7,000 kilometres off the journey, according to the China Daily.

Around 90 per cent of China’s foreign trade is carried by sea and Beijing is also hoping the new shipping route can help develop the northeast. In 2012, 46 ships used the Northeast Passage, compared with four in 2010, according to Rosatom-flot, a Russian operator of icebreakers.

But the traffic is still negligible com-pared with traditional commercial ship-ping routes, such as the Suez Canal, which has 19,000 ships pass through it a year. Previous estimates have suggest-ed up to 15 per cent of Chinese foreign trade could use the Arctic route by 2020. Europe is one of China’s largest trading partners, with two-way trade last year worth nearly $ USD 550 billion.

NEWS

41September 2013

DP World profit grows despite declining volumes

Global container port operator DP World recently reported a 6.3 per cent surge in first-half profit to $295 million despite a fall in global container volumes owing to weaker conditions in Asia-Pacific and the Indian sub-continent.

The Dubai-based company said it record-ed a 26 per cent like-for-like profit increase for the six months ended June 30 com-pared to the same period last year. Like-for-like profit growth is a measure of growth in sales, adjusted for new or divested busi-nesses.

However, DP World’s profits for the pe-riod attributable to the owners of the com-pany rose 9.1 per cent to $264 million from $242 million in the same period in 2012.

In a statement, the company said its consolidated throughput fell 5.7 per cent to 12.8 million TEU while revenue per TEU increased 6.2per cent. As a result overall revenues dipped just 1.53 per cent to $1.5 billion. Asia Pacific and the Indian Subconti-nent led the fall in throughput where a 12.6 per cent drop in throughput to 2.4 million TEU caused a 17 per cent drop in revenue to $192 million.

DP World Chairman Sultan Ahmed bin Sulayem reiterated the strong set of first half results were attained despite challeng-

ing market conditions. “We are on track with our substantial investment plan and on schedule to deliver an additional ten million TEU capacity over the next two years. Our portfolio is well positioned to capitalise on the significant medium to long-term growth potential of this indus-try due to our focus on the faster growing emerging markets and stable origin and destination cargo,” he asserted.

The Middle East, Europe and Africa re-gion delivered a strong performance with adjusted EBITDA improving by eight per cent. Adjusted EBITDA margin expanded to above 50 per cent as cargo mix favoured higher margin origin and destination and non-container traffic, particularly in the UAE. “The resilience in the group’s Middle East and Africa portfolio continues to miti-gate the weaker Europe market,” the state-ment said.

The UAE delivered another solid per-formance growing container revenue by 8.5 per cent and non-container revenue by five per cent as the local economy re-mained relatively robust. Group Chief Ex-ecutive Mohammed Sharaf said despite tough market conditions, the company has reported an excellent set of financial results.

UAE’s new land transport law turns force

A new Land Transport Act has come into effect with immediate effect in the United Arab Emirates’(UAE) in coordination with federal and local authorities. Under the new law, which sets the rules of carrying passengers and goods between the UAE and other countries, no land transport business maybe practiced without getting a license from the National Transport Au-thority (NTA).

The license applicant must be a UAE citizen and the transport vehicle should be equipped with safety gear and should satisfy all technical conditions stipulated by the authority.

“The implementation of the law aims to keep up with the economic growth of the UAE. The team in charge is trying to over-come any challenges that may arise during the implementation of the law,” said Abdul-lah bin Mohammed Belhaif Al Nuaimi, Min-ister for Public Works and chairman of NTA.

The law will be implemented in phases, the first of which has to do with the licens-ing and registering transport companies while the final phase will be about register-ing trucks at border entry points, he added.

DP World in talks to develop international port in Maldives

Dubai-based port operator DP World is in talks to develop an international port in the Maldives through a joint venture with the Maldivian Government, according me-dia reports.

Visiting Maldives President Mohammed Waheed Hassan recently held discussions with Sheikh Mohammed bin Rashid Al Maktoum, Prime Minister and Vice Presi-dent of the UAE & Ruler of Dubai, during a stopover in Dubai. According to Presiden-tial spokesman Masood Imad, the Maldi-vian President and Sheikh Mohammed discussed plans on how Dubai can help improve the archipelago’s maritime sector.

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NEWS

43September 2013

The Arriyadh Development Authority (ADA) in Saudi Arabia has announced the two winning international consortia who will oversee the design and construction of Riyadh’s new $22.5bn metro system. The contract awards are the next major step in the development of the largest public transport project in the world - the Riyadh Public Transport Project, a statement said.

Riyadh Metro Transit Consultants, a joint venture between US firm Parsons and French firms Egis and Systra, has been awarded the first project and construction management contract. RMTC will be responsible for managing metro lines 1, 2 and 3. These lines will be designed and built by the BACS and Arriyadh New Mobility group consortia. The contract is valued at $ 556 million.

Riyadh Advanced Metro Project

Execution and Delivery (RAMPED), a joint venture between Louis Berger and Hill International, was awarded the second contract to manage metro lines 4, 5 and 6. These lines will be designed and built by the FAST consortium. The contract is valued at $264m.

Ibrahim Bin Muhammad Al Sultan, president of ADA, remarked: “Today’s announcement means that we now have the major partners in place to design, build and project manage the development of the Riyadh metro.

The contract awards build on the July announcement of the winning design and construction contractors for the Riyadh metro, which is part of the Riyadh Public Transport Project. The Project encompasses a city-wide metro, bus network, and park and ride services.

$ 820 m contracts awarded for Riyadh metro project

Bahrain’sArcapitasells logistics firm for$365m

Bahrain-based investment house Ar-capita, which agreed on a restructuring plan earlier this year, recently stated it had sold North American logistics firm 3PD Holding to XPO Logistics Inc for $ 365m. Arcapita booked a positive return on the investment it made in 2006, the Bahrani firm said in a statement without elaborating on how large the gain was. Operating in the United States and Can-ada, 3PD Holding has established itself as one of the leading last-mile logistics firms, Arcapita added.

Arcapita became the first Gulf entity to file for Chapter 11 bankruptcy protection in the United States in March 2012 after the firm, which had about $7.4 billion in assets under management, was hit by the global financial crisis. A US court agreed to its reorganisation plan, which included the first Islamic bankruptcy loan, in June 2013.

QatarNavigationH12013netprofitrises30%

Qatar Navigation (Milaha) recently re-ported a 30 percent increase in net profit for the first half of the year, with the com-pany citing improved performance at its maritime and logistics, offshore and capi-tal businesses. The firm made a net profit of Qatari Riyals QR 574 m ($157.6 m) in the six months to June 30, compared to QR 441 m in the corresponding period in 2012, the company said in a statement on Doha’s bourse.

No quarterly figures were provided. However, analysts calculated a second-quarter net profit of QR 229.4 m based on earlier earnings announcements. QNB (Qatar National Bank) Financial Services had estimated Milaha to post a second-quarter net profit of QR212.13 m.

Egypt’s armed forces are strengthening security measures in the Suez Canal, following an unsuccessful terrorist attack on a container ship transiting the waterway on August 31. The head of the Suez Canal Authority, Admiral Mohab Memish, said the attack apparently aimed to disrupt the flow of ships through the Canal, which, as one of the world’s key shipping routes, is secured by the country›s armed forces.

According to the report, a ‹terrorist element› targeted a Panama-flagged vessel passing through the waterway. The attempted attack failed completely

and there was no damage to the ship or the containers it carried. Admiral Memish added that the situation was dealt with strictly and vessel traffic is moving normally.

Meanwhile, the Egyptian Authorities have amended and reduced the hours of the curfew in force with effect from August 31. The curfew is now in force from 2300 to 0600 hours daily, instead of the previous 1900 to 0600 hours. Traffic through the Suez Canal is unaffected by the curfew as the Canal Zone is secured by the military, including land, sea and air patrols.

Egypt fortifies Suez Canal security after failed attack

44 September 2013

UASC-HHI Agreement

Jean Pascal Tricoire, President & CEO, Schneider Electric, the global leader in energy management, recently visited Saudi Arabia as part of an initiative to support the Kingdom’s growth aspirations. During the trip, Tricoire discussed sustainability, smart cities and his vision for an energy efficient Saudi Arabia.

Christophe Campagne, Country President, Schneider Electric Saudi Arabia, commented: “We welcome the visit of our President and CEO to Saudi Arabia as an important step in reaffirming our commitment to the Kingdom. Our objective is to deliver sustained growth, and to help the Kingdom achieve the sustainability and efficiency targets that have been set.”

The high profile visit came close on the heels of Schneider Electric Saudi Arabia’s three-city exhibition-‘Xperience Efficiency’, which showcased the company’s wide-ranging portfolio of integrated solutions

and applications.During the trip, Tricoire met with various

customers and officials and discussed a range of topics with the overarching theme centering on Schneider Electric’s vision to support and encourage all partners to work together to manage and benefit from

the challenges and opportunities ahead.Campagne added: “Saudi Arabia is

investing heavily in infrastructure projects, and the boom is directly benefitting leading products and services providers in the infrastructure construction and maintenance chain.

SchneiderElectricPresident&CEOvisitsSaudiArabia

Air France-KLM-Martinair Cargo will start operating 14 weekly freighter flights to and from Dubai World Central Airport (DWC) as of 1 August 2013, according to Mattijs ten Brink, the airlines’ Senior Vice President—Sales & Distribution. Built for the future, the new airport once completed, will have the capacity and state-of-the-art facilities to handle 12 million tons of cargo annually.

With this development, Air France-KLM-Martinair Cargo will be the first and biggest scheduled cargo carrier in DWC. DWC is already being used as a transfer station for some of the carriers’ Far East freighter routes and it will now become its main hub in the Middle-East, connecting flights between Europe, Asia, Africa, India and its freighter stations in Muscat, Doha, Bahrain, Dammam

and Kuwait in the Middle East. This move will enable the company to

offer its worldwide customers more main deck frequencies and a wider coverage. This move will also enable its fleet to be closer to Abu Dhabi (AUH), the hub of Etihad (EY) so it can further develop co-operation by offering seamless connections in the EY network.

DWC as the main future cargo airport of the United Arab Emirates will become the base for all important forwarding agents. In order to organise smooth transfers between Sharjah (SHJ), where currently many forwarding agents are based, and DWC, the carrier will offer seamless trucking solutions.

Dubai International Airport (DXB) will continue to remain the airport for all its passenger flights. Since the handling agent at both airports is dnata, the carrier will be able to ensure smooth transfers between DXB and DWC.

DWCwillbeAirFrance-KLM-MartinairCargo’snewMEfreighterhub

NEWS

45September 2013

Dubai Trade has urged the trade and logistics community in Dubai to increase adoption of its e-services in the remaining months of 2013 in order to be considered for the 6th edition of its prestigious E-Services Excellence Award (ESEA). The premier trade facilitator under Dubai World will honor top online users during 2013 in a special high-profile event to be held in February 2014.

Winners will be selected based on well-defined criteria that reflect their growth in e-Service adoption on the Dubai Trade Portal (www.dubaitrade.ae) during 2013. To be considered for the Award, the overall online adoption of the company must be 80% at least. The number and volume of transactions will also be taken into consideration.

HE Jamal Majid bin Thaniah, Chairman of Dubai Trade stated: “The E-Services Excellence Award has proved successful over the past five years. It’s our way of appreciating companies and traders who use Dubai Trade online services and preparing them for the transition to smart government.”

80,000 registered companies on Dubai Trade Portal benefit from more than 750

e-Services on the one-stop-shop portal which witnessed more than eight million transactions during the first half of 2013, a 10% increase compared with the same period in 2012.

Eng. Mahmood Al Bastaki, CEO of Dubai Trade urged registered companies and traders to step-up their adoption of the online services in the coming months to increase their chances of winning the multi-category award.

“ESEA Award is the first of its kind in the region that is given based on actual adoption rate which has exceeded 95% of Dubai Trade’s core services. Each year, ESEA gathers more interest. This has prompted us to add new and innovative categories to appreciate e-Transformation in Trade and Logistics,” Al Bastaki asserted.

In this Award, Dubai Trade will be acknowledging nine of the highest adopters of various key e-services. The categories are: Importer of the Year, Exporter of the Year, Re-Exporter of the Year, Shipping Agent of the Year – Containerized Cargo, Shipping Agent of the Year – General Cargo, Freight Forwarder of the Year, Clearing Agent of the Year, Hauler of the Year and Free Zone Company of the Year.

ESEA Award aims at recognizing best e-Service adopters in trade and logistics activities. It also aims at encouraging e-Transformation and building customer loyalty by rewarding the most active companies which use Dubai Trade online services as well as spreading awareness about Dubai Trade portal as a single window for trade facilitation in Dubai.

DubaiTradeonlineusersurgedtoincreasee-servicesusageforthe6thESEAAwards

HE Jamal Majid bin Thaniah

International Air Transport Association (IATA) announced global air cargo traffic results for July 2013 showing a continuation of the modest improvement trend experienced in June. Global freight tonne kilometres (FTKs) were up 1.2% in July year-on-year, slightly better than the 0.9% year-on-year increase recorded in June 2013, as growth in Europe and the Middle East offset weakness in Asia.

As a result of the July performance, air freight volumes are at their highest level since mid-2011. Capacity increased 3.4% versus July 2012, pushing load factor down to 43.3%. However, load factors

have stabilized compared to earlier in 2013.

“The growth is encouraging, particularly in Europe. However, it is premature to say that air cargo may be emerging from the doldrums of the past 18 months. The weakness in Asia-Pacific freight markets and the deteriorating political situation in parts of the Middle East give ample reason for continued concern,” cautioned Tony Tyler, IATA’s Director General and CEO.

Airlines in Europe, the Middle East and Latin America contributed to the improved performance versus a year ago. Middle East airlines led all regions with a

14.4% rise in FTKs compared to July 2012. Capacity climbed 11.1% and year-to-date demand was up 11.7%. The Middle East was one of just two regions globally in which airlines saw demand growth exceed capacity growth.

Part of the rise in year-on-year growth rates in July is owing to the timing of Ramadan, which took place mostly in July 2013, while in 2012, most of the holiday occurred in August. Ramadan typically gives a boost to air freight demand for Middle Eastern carriers, as air transport of perishable foods and gift parcels increases to/from the region.

MEfareswellinJuly2013CargoResults–IATAReport

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NEWS

47July-August 2013

Construction has begun on Emirates SkyCargo’ s new state-of-the-art cargo terminal and supporting facilities at Dubai World Central Al Maktoum International Airport, which is set to become the home of its freighter operations from May 2014.

In addition to the cargo terminal, various facilities and infrastructure will be built including 46 truck docks and 80 truck parking spaces, 12 aircraft stands directly in front of the terminal, while additional interface facilities - east and west cross docks – will be built at Dubai International Airport.

Construction company Amana Steel Buildings Contracting, was awarded the contract and recently started with the foundation work for the cargo terminal, with the first phase to be completed in December 2013. Following the completion of the first phase, the cargo handling system and the interior will be fitted, with the first section to be delivered to Emirates SkyCargo by the beginning of April next year and full completion by mid-September.

Emirates SkyCargo currently operates a freighter fleet of ten aircraft – eight

Boeing 777Fs and two Boeing 747-400ERFs – all of which will move to Dubai World Central Al Maktoum International Airport. Dedicated road feeder services between the two airports for connecting cargoes will be introduced to maintain the existing transhipment times between freighters to the passenger fleet and vice versa.

“The planned move of our freighter operations from Dubai International Airport to Dubai World Central Al Maktoum International Airport is the next step in Emirates SkyCargo’s overall expansion and growth programme. It provides us with a brand new facility for our freighter operations and will increase capacity and enable us to meet our long-term objectives,” averred Nabil Sultan, Emirates Divisional Senior Vice President, Cargo.

The terminal will have an initial capacity to manage 700 000 tonnes of cargo per annum, which can be expanded to meet future growth. It also provides Emirates SkyCargo with the space to have a larger perishables handling area, with a dedicated pharmaceutical storage area, enabling it to expand its cool chain products and services.

New Cargo Terminal for Emirates SkyCargo at DWC

Total Freight breaks ground on new facility in DWC’s Logistics District

Dubai World Central (DWC), the world’s first purpose-built Aerotropolis, has revealed that UAE-based Total Freight International LLC has commenced construction of its own facility in DWC’s Logistics District. The 5,600-sqm facility, which will be operational in April 2014, will primarily be used for general cargo warehousing, distribution and value added services, in addition to featuring office space.

A section of the warehouse space within the state-of-the-art facility will specifically be allocated for cargo requiring a temperate-controlled environment. Moreover, the infrastructure of the facility has been designed to be scalable, which means that the whole warehouse can be easily converted into a

temperate-controlled facility in the future if required. The facility has a total storage capacity of 8,400 pallet positions, with the temperature-controlled section having an initial capacity of 600 pallet positions.

Saajin Salim, Director - Business Development, Total Freight International LLC, commented, “As a second generation member in the business I feel the freight and logistics industry has matured well in the UAE and the region as a whole.” Total Freight International LLC also revealed that an area in the new facility will be allotted for Container Freight Station (CFS) operations, consolidation/de-consolidation, and break-down of airline cargo.

Mohsen Ahmed, VP - Logistics District, reiterated, “ Total Freight International can leverage DWC’s integrated infrastructure, the cutting-edge facilities of the Logistics District and our multimodal capabilities, to enable seamless movement of cargo, which is a vital factor when it comes to addressing the requirements of their clients in today’s dynamic business environment.”

DWC offers an array of benefits to logistics businesses with its integrated operation model, high level of security and safety, enhanced connectivity and competitive pricing. Its modern facilities and state-of-the-art infrastructure have enabled businesses to expand regionally and globally from Dubai.

48 September 2013

NEWS

Etihad Cargo has posted record monthly uplift figures for July of 45,000 tonnes, a 37 per cent increase on the same month in 2012 (32,876 tonnes). Etihad Airways’ Chief Strategy and Planning Officer, Kevin Knight, commented: “Over the past 12 months we’ve strengthened our global cargo business, expanded operations across new and existing trade lanes, seen demand continue to grow, and in response,

we’ve been able to add greater capacity via our growing passenger and freighter fleet.”

The impressive tonnage figures for July were driven largely by increases in key export markets such as India, Hong Kong and China and demand into the Middle East for foodstuffs ahead of Ramadan, predominantly from the Netherlands.

The carrier’s Abu Dhabi hub also posted record tonnage for July with 70,500 tonnes

handled into, out of and through the cargo facilities, which are now part of Etihad’s subsidiary organisation, Etihad Airport Services – Cargo.

Etihad Cargo’s freighters include three Boeing B777F, one Boeing 747-8F, one Boeing 747-400ERF, one Boeing 747-400F, three Airbus A330-200F, and a remaining freighter delivery – an Airbus A330-200F will arrive in spring 2014.

Etihad Cargo handles record July tonnage at Abu Dhabi Airport

NEWS

49September 2013

RSA breaks ground on logistics facility in Dubai

Jeddah airport expansion on track

RSA Logistics, a major player in freight forwarding, distribution, and supply chain management sector in the UAE and Kenya, has started the construction of a 9,500-sq m temperature-controlled facility at Dubai World Central (DWC), the world’s first purpose-built Aerotropolis.

The upcoming facility, which will be operational by March 2014, is located adjacent to the company’s headquarters in DWC’s Logistics District and will be targeting the automotive and hi-tech industries. RSA Logistics also inaugurated a new open yard facility extending from the new premises, which is fully operational.

DWC pointed out that RSA Logistics is one of several companies taking advantage of its integrated infrastructure to strategically expand their core offerings to local and regional businesses in the Mena region. DWC offers an array of benefits to logistics businesses with its integrated operation

model, high level of security and safety, enhanced connectivity and competitive pricing. Its modern facilities and hi-tech infrastructure have enabled businesses to expand regionally and globally from Dubai.

RSA’s move to expand their footprint in DWC complements the company’s commitment to address a growing need in the region for high-quality process-driven facilities, said a senior official. Headquartered in Dubai, RSA has developed business verticals, in Chemicals, Automotive, Oil & Gas and Projects.

“As we continue to cement our presence in the UAE, we understand that specialised and dedicated services are what our customers require. This new facility will focus on the hi-tech and automotive business verticals, which require temperature, humidity and hygiene controls,” affirmed Abhishek Ajay Shah,

the Director of Operations & Business Development at RSA Logistics.

Mohsen Ahmad, the VP of Logistics District, DWC, commented: “A combination of factors such as the hi-tech infrastructure, the fully integrated ecosystem and the high level of connectivity make Dubai World Central an ideal base for logistics and trading companies to not only establish their presence in the UAE but also successfully tap new regional and international markets.”

“RSA Logistics in particular can expect significant strategic benefits by expanding their facilities in the Logistics District, which continues to attract major companies from around the world,” he added.

Dubai World Central consists of 8 fully integrated districts, helping drive business in different industries, including aviation, logistics, commercial, real estate and exhibitions.

Construction of a massive expansion at King Abdul Aziz Airport in Jeddah is on track despite a reduction in labourers due to the Kingdom’s amnesty, the Chairman of the General Authority of Civil Aviation (GACA) has revealed. The first phase of King Abdul Aziz Airport Project is due to be completed by the end of next year, with a final capacity of 70-80 million passengers by 2035.

The existing airport is the second-busiest in the Middle East after Dubai with 23 million passengers annually. It was originally designed to cater for only 7 million. GACA chairman Prince Fahd bin Abdullah bin Abdulaziz confirmed 30,000 workers, including 1250 engineers were working at the airport site.

GACA is working closely with various government agencies and contractors to speed up the project, which would make the airport one of the largest and most advanced facilities in the region. He stated that more than 70% of the new, sophisticated, air traffic control tower, the

largest in the Middle East, was completed. Prince Fahd said the glass facades of the building were being installed and there was progress on the installation of a cooling system, baggage conveyor belt and power generators.

King Abdulaziz International Airport,

which opened in 1981, has experienced enormous growth in passenger traffic. According to GACA, the airport had recorded a 16 percent increase in international passenger traffic and a 12 percent increase in Haj and Umrah flights in the past year.

50 September 2013

NEWS

NEW PAGE

52 September 2013

New : Picture Post

PICTUREPOSTIn the first of a new ‘photojournalism’ series, The LINK brings to its readers Picture Post, a reportage from

the perspective of the lens. This image gallery will cover corporate receptions, press conferences and events related to the SC&L trade.

DHLEXPRESS

DHL Express hosted a lavish Ramadan Iftar reception at the especially and elaborately set up Asteer Tent at the Atlantis Hotel on Dubai’s Palm island. The function was attended by the company’s associates, partners, clients, senior management and the media. Present at the event were among others, Elliott Santon, Marketing Manager; Mohammed Sheiha, Marketing Communications Manager and Nishani Premaratne, Marketing Communications Executive, DHL Express.

TRISTAR

The Tristar Group held a sumptuous Iftar dinner reception for special invitees including clients, associates, partners and the media at the swank Al Majlis Ballroom at the Mina Al Salam Hotel in Madinat Jumeirah. Present on the occasion were Eugene Mayne, Group Chief Executive and Arthur Los Banos, Corporate Communications Manager, Tristar, who personally welcomed and received the guests.

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54 September 2013

SCLG Corporate Profile

SGS Gulf

SGS is the world’s leading inspection, verification, testing and certification company founded in 1878. We are recognized as the global benchmark for quality and integrity. With more than 75,000 employees, we operate a network of more than 1,500 offices and laboratories around the world. At SGS, we provide independent services that touch the lives of millions of people across the globe. We provide industry leading inspection, verification, testing and certification services – anywhere in the world.

SGS has been committed to serving the verification, testing, assessments and certification requirements of clients and industry throughout the Arabian Peninsula for over 30 years. Rapid economic development and liberalisation in the region has created a huge number of opportunities for business and industry, and SGS has been at the forefront

of developing new services to meet the ever-changing needs of a growing and diverse range of clients.Today, SGS operates a network of 30 offices and laboratories throughout the Arabian Peninsula employing over 900 professionals

from 33 different nationalities. SGS branch offices spread throughout the United Arab Emirates, Saudi Arabia, Kuwait, Bahrain, Qatar and Oman covering wide range of its services.

SGS has no manufacturing, trading or financial interests which could compromise its independence. This guarantee, aligned to its reputation for professionalism, integrity and impartiality, place the SGS group in a unique position.

SGS’s core services can be divided into four categories:Inspection: The comprehensive range of world-leading inspection and verification services, such as checking the condition and

weight of traded goods at transshipment, helps to control quantity and quality, and meet all relevant regulatory requirements across different regions and markets.

Testing: The global network of testing facilities, staffed by knowledgeable and experienced personnel, enable to reduce risks, shorten time to market and test the quality, safety and performance of your products against relevant health, safety and regulatory standards

Certification: SGS assures your products, processes, systems or services are compliant with either national or international standards and regulations or customer defined standards, through certification

Verification: We ensure that products and services comply with global standards and local regulations. Combining global coverage with local knowledge, unrivalled experience and expertise in virtually every industry, SGS covers the entire supply chain from raw materials to final consumption.

Motorola Solutions

Motorola Solutions is a leading provider of mission-critical communication products and services for enterprise and government customers. Through leading-edge innovation and communications technology, it is a global leader that enables its customers to be their best in the moments that matter.

Motorola Solutions serves both enterprise and government customers with core markets in public safety government agencies and commercial enterprises. The brand’s leadership in these areas includes public safety communications from infrastructure to applications and devices such as radios as well as task-specific mobile computing devices

for enterprises. The company produces advanced data capture devices such as barcode scanners and RFID (radio-frequency identification) products for business.

Motorola Solutions makes make professional and commercial two-way radios for a variety of markets, and we also bring unlicensed wireless broadband capabilities and wireless local area networks – or WLAN – to retail enterprises.

55September 2013

SCLG Leadership Composition

Corporate MembershipMembership with the Supply Chain and Logistics Group (SCLG) is open to all organisations. Cor-porate members may nominate four to six members, depending on the category of membership - basic, privileged or premier - they opt for. All nominated members shall be allowed to vote at the Annual General Meeting (AGM) and at any Extraordinary General Meetings. The Board of Direc-tors (BoD) and Executive Committee (EC) members shall decide the annual fees for membership.

Individual MembershipOpen to any individual from any part of the world. The annual subscription shall be set from time to time as deemed necessary by the Board of Advisors and Executive Committee members.

Student MembersOpen to students in Full Time Education only. Student membership shall not convey any voting rights to the individual. The annual subscription shall be set from time to time as deemed neces-sary by the Board of Advisors / Executive committee members.

Why be an SCLG MemberA membership allows access to educational training, seminars and networking evenings at

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

international partners. There is also a certificate that distinguishes a member as a professionally focused individual or enterprise committed to the cause of the supply chain and logistics industry. For more details, please visit our website on www.sclgme.org. If you wish to volunteer to help us foster a better supply chain and logistics community, please contact Kanchan Vora on [email protected]. The SCLG Middle East is a non-profit organization working under the umbrella of the Dubai Chamber of Commerce and Industry to promote the cause of the supply chain and logistics industry. It brings opportunities for personal and professional development through networking prospects among like-minded professionals and corporations on a global basis.

The SCLG was founded with the help of senior managment professionals representing a wide spectrum of industries in the supply chain. It strives to bring the best in education, seminars and interaction through partnerships and alliances with a variety of similar bodies across the globe. The Group,s official magazine, The Supply Chain and Logistics Link, addresses the needs of the supply chain professionals in the Middle East. It presents news, views, developments and information drawn from industry experts. The first of its kind in the region, The Link aspires to be a benchmark for the industry community, offering valuable insights and information to the target market. The magazine

,s articles and news features cover innovative supply chain practices,

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

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

achievement of professional, educational and personal goals by members of the SCLG commu-nity in an atmosphere that encourages professional development, diversity, and innovation in the Supply Chain and Logistics Management.

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

of all industries on end to end supply chain. • To protect the interests of member organisations and support government bodies in formulation of policy framework for logistics organisations. • To encourage the free exchange of knowledge and skills relating Supply Chain and Logistics within the members of the organisation. • To provide all members an opportunity to network among each other and help facilitate an overall efficient commercial environment. • Undertake studies, compute and maintain information, statistical data and official documents relating to various aspects of Supply Chain and Logistics industry for the benefit of all. • To establish and maintain contact with similar organisations internationally and provide all members an opportu-nity to network with like- minded organisations / members across the globe. To conduct training courses, seminars, conferences and studies relating Supply Chain and Logistics; also establish a library and research centre relating this industry to expand the knowledge base. • To establish good relations with other professional groups or societies that exist or to be established locally or globally. • To promote the cause of education in Supply Chain and Logistics among nationals of UAE and thereby contribute to build a cadre of professionals and extra competent nationals to take up current and future challenges of the Supply Chain and Logistics industries.

GLOBALTHOUGHTANDINDUSTRY LEADERS

Saadi Al RaisRHS Logistics

Shashi ShekharFounder & Group President SCLG

Mishal KanooKanoo Group

Michael Proffitt

Essa Al SalahAgility Logistics

Clifford Cuttelle

Jinendra Sancheti Vidal FZE

David WildMax Sales Solutions

HamdiOsmanSanjay NaikEmirates Group

Dr. John Gattorna

Mohammad SharafDP World

Fadi GhandourAramex

Membership

56 July-August 2013

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Management & Supplier Support Emirates Group

Arun JaniDirector of ProcurementPetrofac International

Jimmy Johnson Director of Supply Chain

Management Johns Hopkins Medicine

Sam Eljaouhari Chief Procurement Officer

BP

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Sigrid Brendel Director of Dairy

Procurement Mondelēz International

Khalil MansourChief Financial Officer Habtoor Leighton

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Meet the SCLG Leadership

57September 2013

Mishal Hamed Kanoo, a global thought & industry leader with SCLG, is the Deputy Chairman of the Kanoo Group, one of the largest independent, family-owned, group of companies in the Gulf region. Mishal, a UAE national, was born in Dubai in 1969. He completed his schooling in Dubai and holds a Bachelor of Arts, Economics and Business Administration and an MBA in Finance from the University of St. Thomas, Houston, Texas. Mishal started his professional career with Arthur Andersen in Dubai as an Auditor before taking up his current position in 1997.

Mishal is a frequent speaker at conferences in the Gulf and internationally. He debuted as a columnist in Money Works Magazine. His wide-ranging knowledge of regional business affairs and global capital markets give him unique and often controversial insights into business life in the Gulf region. Mishal continues to voice his views and opinions in op-ed articles and contributions to local and regional newspapers, adeptly spelling out the ethical and religious values and blending them with modernity and progress.

Mishal is a great advocate of education. He believes that it allows people to take responsibility and control of their lives. His guiding philosophy is a deep belief in honesty and looking ahead in life. These are values that underline the Kanoo family heritage and have always been vibrant and compelling from generation to generation.

Profile

Mishal Hamed KanooDeputy Chairman, Kanoo Group

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58 September 2013

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