A Publication of the National Association of Freight & LogisticsQuarterly (4 Issues in a Year) Issue 01 March 20...
Magazine April 180mm x 130 mm.pdf 1 4/7/15 9:56 PM
A note from Secretary General
NAFL: Committed to support your
progress ...
his forum provides an important
platform for the exchange of ideas,
best practice and experiences
in the historic trade ...
Chairman’s welcome
to RAME 2015
Regional field
meetings are best for
UAE with India makes a vibrant
business corr...
RAME 2015
will harness
closer ties
among freight
across regions
iddle East and Dubai in particular has
come a ...
ebel Ali Free Zone (Jafza) is
Dubai’s pioneering initiative to
turn the emirate into one of
the world’s leading business...
The Free Zone is home to over 200 leading
logistics companies including UPS, Danzas,
DHL, Fedex, Aramex, GAC, Agility, J S...
Dubai Chamber enhances trade
and commercial ties across
African continent
frica is the world’s second-
largest and secon...
ith the latest technology
brought to operations
and processes along with
the range of services provided via
smartphone m...
ubai World Central (DWC) represents
a proposition that no astute logistics
business can afford to overlook. Projected
Tourism Vision 2020
Dubai Tourism sets sights on making
Dubai the destination of choice
and is responsible for the licensi...
tihad Airways is a strong supporter of
the National Association of Freight and
Logistics (NAFL) and proud to be one of
NAFL at Dubai Trade’s
7th E-Services Excellence
Award (ESEA)
AFL participated at the 7th ESEA Awards
Members News
gility, one of the world’s
largest logistics firms, plans
to invest over US$100
million for expansions worl...
Memmbers NewsMembers News
DHL invests in new hub
at Brussels Airport
HL will invest € 114 million (approx.
US$129 millio...
Members News
orming mutually beneficial strategic
relationships with key suppliers and
business partners enables compani...
Members News
Dubai’s Aramex proposes 14
per cent cash dividend for 2014
ubai logistics firm Aramex said on
Wednesday its...
he expansion, which was
announced by the UK’s
Secretary of State for
Transport, Patrick McLoughlin MP,
will increase dee...
Ports & Shipping
Gulftainer to deploy SAP solutions
ulftainer, a privately-owned,
independent terminal
operating and log...
onstruction of a new
agricultural bulk handling
terminal at Oman’s Sohar Port
is expected to also have a positive
Emirates forecasts
10 per cent cargo
volume growth
mirates SkyCargo, the largest
international cargo operator
by volume,...
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Nafl march 2015

NAFL RAME special edition, we are excited.....:)
Published on: Mar 3, 2016
Published in: Business      

Transcripts - Nafl march 2015

  • 1. NAFL NEWS A Publication of the National Association of Freight & LogisticsQuarterly (4 Issues in a Year) Issue 01 March 2015 Vol 12 F IATA, the largest body of freight forwarders will convene it’s Regional Africa Middle East (RAME) 2015 Field Meeting in Dubai, the logistics capital of the world. Organised under the patronage of HH Sheikh Ahmed bin Saeed Al Maktoum and organised by National Association of Freight and Logistics (NAFL), the two day industry dialogue will be be held on April 19 and 20 at the Intercontinental Hotel, Festival City, Dubai. This year’s RAME field meeting, as the theme says will be a platform for creating relationships and energising business. The participants will get a chance to meet forwarders, decision makers, authorities and regional associations from industrial power houses like Africa, Middle East and Indian Subcontinent. The primary goal of the RAME 2015 will be to bring forward the regional issues, preparing them for discussion in the Institutes and technical bodies of FIATA. With the growing significance of Africa and the Middle East Region in global economy and trade, it is necessary to have a comprehensive dialogue on the regional trade to build resourceful guidance for the businesses to invest in this growing economic hub. The RAME 2015 held under the Patronage of HH Sheikh Ahmed bin Saeed Al Maktoum, holds significance as NAFL has invited major logistics players from Indian Subcontinent, particularly from India and Pakistan. As Middle East, Africa and Indian Subcontinent remains fastest growing markets trade between these regions is as vibrant as the cultural riches they share. This and other developments like population, trade benefits and cost savings make them magnets attracting business from all over the world. And RAME will offer delegates a unique platform to meet with business partners and colleagues from Africa and Middle East, India and Pakistan and in addition provide an opportunity for participants to review the progress the UAE has made in the field of Freight and Logistics. The event is supported by UAE’s economic growth drivers including Dubai Chambers, DP World, JAFZA, DWC, Etihad Airways, Emirates Airlines, Dubai Tourism and Expo 2020, Freight Systems, New Age Software Solutions and Dubai Trade. Participants will have the opportunity to be part of field trips to the Jebel Ali Free Zone (JAFZA), DP World and Dubai World Central (DWC), the organizers said. UAE with India makes a vibrant business corridor: David Phillips NAFL welcomes you at FIATA RAME-2015 T he National Association of Freight and Logistics (NAFL), under the patronage of HH Sheikh Ahmed bin Saeed al Maktoum, President of the Department of Civil Aviation and Chairman and Chief Executive of Emirates Airline and Group, will organize the FIATA Region Africa Middle East meeting at Inter Continental Hotel, in Dubai on April 19th and 20th. “RAME is the acronym for ‘Region Africa and Middle East, and FIATA has awarded Dubai the rights to host this annual field meeting. As an affiliated body of FIATA, NAFL will be the host association for RAME 2015 field meeting. RAME as a region itself is a very vibrant business corridor and the UAE and Dubai has been the traditional hub that bridges these regions and facilitates trade,” Mr David Phillips, President of NAFL said. “On the other hand, India is now a trade powerhouse and when connected to Middle East trade corridor, possibly makes the most exciting area globally for logistics and trade. With a new aggressive government, India has embarked upon a growth plan that experts will highlight at the various speaking sessions and panel discussions at RAME 2015. Two major industry associations in India - Federation of Freight Forwarders’ Associations in India (FFFAI) and Association of Multimodal Transport Operators of India (AMTOI) have endorsed and supported this conference,” he added. David Phillips President of NAFL HH Sheikh Ahmed bin Saeed al Maktoum President of the Department of Civil Aviation and Chairman & Chief Executive of Emirates Airline and Group, NAFL Patron We look forward to your attendance at FIATA RAME 2015 held in Dubai on 19th and 20th of April under the theme ‘Creating relationships and energising business’, Dubai has taken huge strides as a hub for trade, finance, tourism and logistics. I forward my support to NAFL in this endeavour. RAME2015gainsimportanceasitinitiatesdialogues and brings under one umbrella various decision makers, logistics industry players and enablers like us offering opportunities for establishing new alliances and strengthening business ties. UAE, particularly Dubai is one of the best trade facilitators with its geographic location, services and tax free environment and over 38 freezones to choose from to match your industry. As a logistics hub for the world, Dubai is the right choice to hold FIATA RAME 2015, we welcome you to know Dubai, see what we offer and see the convenience of doing business in Dubai. Patron’s Massage Continued on Page 4
  • 2. Magazine April 180mm x 130 mm.pdf 1 4/7/15 9:56 PM A note from Secretary General NAFL: Committed to support your progress in Middle East U AE is home for thousands of international companies and third largest export hub that houses some of world’s top ports and airports. We have been the hub of trade for many decades. With the leadership of HH Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, we Nadia Abdul Aziz Managing Director & Partner, Unasco and Secretary General National Association of Freight & Logistics have been witnessing mega infrastructure projects to make our city-Dubai and the UAE the top destination for trade logistics and tourism. We have managed to encourage intensive direct foreign investment due to our friendly and easy to set up businesses and work practices. This is not only for business but even in the ownership of real estate. We are heading towards, smart services era and our rulers, goal is to have the happiest people living here by providing top quality integrated services and solutions to not only National citizens but all the people living in Dubai and the UAE. Everything is going to be at the consumers, finger tips and all transactions will be via smartphones. This strategy has already been implemented in various government and semi government entities to help all consumers even in the freight industry, Dubai Trade has started this service to its online portal users. The country has one of the most business friendly infrastructure and economic policies. And logistics remains the strongest pillar of growth. We, as a non-profit organisation strive to become knowledge resource and advisor for your business endeavours in UAE. We are all excited to be part of the Expo 2020 and the city will receive millions of visitors and create more than 270, 000 new jobs . This will also create more supply chain and freight business for all of us. My message to all forwarders is to grow with this opportunity and expand in Dubai if they have not done so yet. NAFL is always here to assist in expanding your horizons in the Middle East, gateway between East and West, and beyond. I will be available to assist any foreign delegates who want to know more about Dubai and the UAE in terms of setting up businesses or securing freight agents. FIATA RAME-2015 2 NAFL News | March 2015
  • 3. T his forum provides an important platform for the exchange of ideas, best practice and experiences in the historic trade ties between the Middle East, Indian Sub-Continent and Africa with a theme close to our hearts – creating value. Our role at DP World is indeed one of creating value – encouraging trade, economic growth and progress to flourish and we look to enable them wherever our customers want us to be. I look forward to a fruitful discussion among the industry on a part of the world where trade took root thousands of years ago and which remains an important artery for modern global economies. D ubai Chamber is pleased to be participating in this important forum once again. A majority of our members operate in the trade, logistics and supply chain sectors which are also main pillars of Dubai’s economy. Dubai Chamber works closely with NAFL on various projects and events throughout the year as part of our goal to ensure Dubai’s leading position in the international freight and transportation fields. In addition, our Supply Chain & Logistics Group has an important role in supporting the industry through policy, education, research and networking locally and globally. T his year we celebrate the 15th anniversary of RAME, it feels great and I would like to narrate the journey to who were not with us for the adventure. I reached FIATA as a delegate from Tunisia in 1978 and grew to be the President of a customs commission, then vice president of the board, incoming president and finally President of FIATA in 1997. The 1999 was very special; I finished my tenure as President of RAME and is the same year RAME was established. FIATA was founded in 1926 by a group of European freight forwarders, though the name was international, the federation was seen, more or less, as an European Former President of FIATA and Founder of RAME A note from the founder Abdelmalek Dahmani association; members from other parts of the world had this feeling, but were not enough active within the FIATA bodies to change this reality. This convinced me to do something and the idea to settle regional groups came to light. The members of these groups would meet, discuss about their specific problems and bring them to the various FIATA institutes and advisory bodies for studies, exchanges of ideas and solutions finding. On becoming the President of FIATA, I proposed this to my colleagues and the board approved formation FIATA regional bodies. We did what has to be done and these regional groups held their first meetings on 27th of September 2000 during the Rotterdam Congress. We began with three groups, the Region Asia Pacific, Region Europe and Region Africa Middle East; one year later the Region America joined the group. RAME, was born with a very few members and I had the honour and privilege to be the first President. I would like to thank all the members who worked very hard and succeeded to attract more memberssothatwetodayrepresent 14 national association members from Africa, and 8 from Middle East. And then comes around 1800 freight forwarders companies are individual members ; within this 140, represent 12 countries that do not have national associations, for various reasons. Together we should try to find solutions to hurdles and I am convinced that our current President, Basil Petersen is right person to lead and reach the challenge. You think membership in RAME is good! Yes, but we need the remaining 40 African countries and the 9 Middle East countries to be national members of FIATA. And field meetings like the one we have here in Dubai should work towards this goal. The success of our meetings has inspired other regions to do the same. Our success in the past years has brought presidents and very often major board members to FIATA and share outcomes meetings. The RAME region has achieved to present with two Presidents and not to name numerous Vice Presidents, this we can be proud of. In conclusion, I would like to remind a huge contribution of former president of FIATA and NAFL Mr Issa Baluch. I would like to thank him for building a strong body in the form of NAFL and RAME. FIATA RAME-2015 HE Salma Ali Saif Bin Hareb CEO, Jafza HE Sultan bin Sulayem Chairman, DP World HE Hamad Buamim President & CEO, Dubai Chamber W e are happy to sponsor FIATA Annual Field Meeting, hosted by NAFL in Dubai. It is one of the important Logistics Industry events where industry leaders from across the world gather. Our sponsorship aims at supporting the industry which is quite critical for the entire Middle East region already on way to rapid expansion in the coming years. This also provides the local and regional logistics companies an opportunity to interact with key decision makers, potential customers and logistics industry’s global leaders and share their experiences and good practices to gain valuable knowledge. “The event provides Jafza an opportunity to showcase its phenomenal strength as a facilitator and a trade and logistics hub to the global industry players. The logistics sector in the Free Zone has generated trade worth Dhs109 billion, which accounted for 34 per cent of the free zone companies’ total trade in 2013. March 2015 | NAFL News 3
  • 4. Chairman’s welcome to RAME 2015 Regional field meetings are best for dialogue UAE with India makes a vibrant business corridor: David Phillips Continued from Page 1 “Moreover, the conference will also provide delegates opportunity to meet with potential partners in African countries as, Africa is one of the fastest growing economies and FIATA has 15 associations in Africa and members from all of them will support Dubai for this important conference. A s RAME Chairman, it is my distinct pleasure to extend an invitation to each of you to participate in the upcoming 2015 RAME Field Meeting to be held during the month of April. This year’s RAME Field Meeting promises to be special, based in none other than the tropical paradise that is Dubai. In such a short time span, we’ve all witnessed Dubai emerge as a global City and Business Center of the Gulf region serving as a major transport hub for passengers and cargo. It is interesting to note that from the early beginnings Dubai’s economy was based on revenues from trade before the discovery of oil in 1966. Nowadays, the Emirate’s Western-style model of business drives its economy and attracts world attention through many innovative large construction projects and sports events. The City has become quite symbolic for its skyscrapers and high-rise buildings, in particular the world’s tallest building, the Burj Khalifa. As the City continues its expansion, I would encourage all to come and join us in Dubai for what is a highly anticipated 2015 RAME Field Meeting consisting of high level speakers, in-depth panel discussions and key note presentation covering prevailing topics in the regions of the Middle East, Africa , India and Pakistan. Our hosts this year, the National Association of Freight and Logistics (NAFL) have worked tirelessly to put together this well- balanced two day agenda which is sure to highlight clear actions for the industry but also provide great entertainment with the Gala Dinner and City Tours to help us unwind. The Field Meeting will also highlight young talent through FIATA’s Young International Freight Forwarder of the Year Award for which a RAME participant won last year’s prize. Participation at this year’s RAME Field Meeting is expected to be higher than usual as the Country’s geographical location makes it readily accessible to our friends and delegates from western parts of Asia for which their participation is always welcomed. So my friends and colleagues, I extended to you again the invitation to register and participate in the 2015 RAME Field Meeting. I look forward to meeting you all in Dubai. R egional field meetings play an important platform for dialogue between all stakeholders in the logistics industry and help FIATA understand regional issues. And RAME 2015 held in Dubai on April 19th and 20th will be an important gathering as Africa-Middle East region remains one of the fastest growing areas in the world in terms of trade. FIATA President Francesco Parisi said that, “I am really looking forward to attending the next FIATA Region Africa Middle East (RAME) Field Meeting in Dubai. RAME is one of the fastest developing areas in the world in terms of trade growth and logistics, consequently our industry in this area faces challenges connected with growth.” Being a dynamic international organisation, FIATA is bound to deal with issues at the grassroot level and regional meeting such as RAME serves the purpose. Mr Parisi adds that, “Being a dynamic federation FIATA has to hear what our member need directly from the local practitioners. The regional field meetings are the best opportunity for us to listen and understand issues and opportunities on the groundlevel. And as it happens, parallelly promote the image of FIATA and its knowledge base within our constituents.” “The 2 day conference will have sessions dedicated to each region, wherein speakers, who are experts in the region and leaders in the industry, share information on the developments, opportunities and challenges of the region. Each session will have a moderated panel discussion with Q&A from the delegates. President of FIATA, Mr Francisco Parisi, will be at the conference, as well as many from Presidency and Board members,” Mr David informed. In conclusion Mr David said that Dubai has emerged from being a regional hub to truly global logistics hub. This has not happened overnight, but has been a journey. The steady infrastructure growth has been the back bone of the hub and is ever evolving. There will be organised visits to the port, free zones and the Dubai World Central, which houses the brand new Maktoum International Airport. FIATA RAME-2015 Basil L. Pietersen RAME Chairman Francesco Parisi FIATA President 4 NAFL News | March 2015
  • 5. RAME 2015 will harness closer ties among freight community across regions M iddle East and Dubai in particular has come a long way from the barren desert to become an oasis for business and gateway for global trade. Last few decades were cornerstones in the development of the region into an economy brimming with opportunities and a multimodal hub. A seasoned logistics expert Mr Issa Baluch has been brains behind the thriving sea-air combined transport freight business in the UAE. A senior fellow at Harvard University and former President of NAFL, Mr Baluch has seen the regional industry grow to be the best and shares his views and expectation from RAME 2015 with NAFL News in a Q&A here. 1. Can you give us a brief insight into importance of Africa and ME for global logistics? In the last decade, Africa has proven to be the last economical frontier registering the highest GDP growth, 7 out of 10 global economies with positive and highest GDP growth were in Africa. And Intra-Africa trade has shown steady growth of average 20 per cent per annum. With a population that is touching 300 million in the middle income bracket expected this decade, this is a great number with spending ability. Whereas the Middle East has re-written the transport logistics code by embarking on policies, infrastructure and investments that are not matched by anyone. And this has placed the Middle East as a gateway to the region and many countries in Africa. 2. What are the growth industries/ products for import/export trade in the region? Do you see Africa as a perishables export hub? Fast Consumable goods, project related in the fields of gas, oil and minerals are the main flows into Africa. Over27.5percentofarablelandrepresenting 733 million hectares of agricultural land and just 3.8 per cent of Africa’s surface & ground water has been harnessed leaving a huge and considerable capacity to hoist Africa as a prime agri-produce export hub and as the food basket of the world. 3. What are the challenges faced by forwarders doing business in Africa? And how ME serves as a hub connecting Africa? Visibly, the forwarders face the same challenges as those in any other sectors. The lack of proper policies coupled with infrastructure. These are changing and do not move at the speed forwarders would want them. The Middle East, in particular Arab traders have been engaged with Africa for centuries reasons why there is a common bondage in culture, social and in many respects language and that makes them quite close to each other. 4. What strategic developments would you suggest for an efficient Africa- Middle Ease logistics connectivity? The meeting of the minds is the best strategy. The hosting of FIATA’s RAME field meeting is one example. NAFL should be applauded for taking this initiative. FIATA has been at the forefront in launching RAME for this specific goal and the achievements in this regard the last 15 years have been remarkable. 5. Your advice to a forwarder expanding into Africa? Africa is a continent with 54 countries and it is not one country like many presume it to be. Know them all as they are different in many respects. 6. What is you outlook for 2015 and beyond for Africa-Middle East logistics sector? What do you expect from FIATA RAME 2015 meeting? The jury on 2015 is still out. The geopolitical situation still brews and the oil price continues to be shaky. So it is a storm that will hopefully pass through predictably by end of 2015. RAME 2015’s venue, Dubai is an excellent venue in for networking. This is one of the locations that can illustrate the power of the right logistical policies and drive coupled with infrastructure. As usual networking in logistics sector has been amongst the core specialty of FIATA. And at this year’s RAME we expect to meet colleagues from the ME, Africa meeting comrades from Pakistan, India, Singapore, Taiwan and from the Western hemisphere. 7. What issues or development will be trending at RAME 2015? We need to keep moving and developing business and relationships, these remains to be key in our industry and for our region ME & Africa. The outcome is business development, harnessing closer relationships and venting on where to meet next. The buck does not stop here. FIATA RAME-2015 The meeting of the minds is the best strategy. The hosting of FIATA’s RAME field meeting is one example. NAFL should be applauded for taking this initiative. FIATA has been at the forefront in launching RAME for this specific goal and the achievements in this regard the last 15 years have been remarkable Issa BaluchHonorary Board Member - FIATA & Senior Fellow at Harvard University March 2015 | NAFL News 5
  • 6. J ebel Ali Free Zone (Jafza) is Dubai’s pioneering initiative to turn the emirate into one of the world’s leading business hubs. Jafza is built around Jebel Ali Port, world’s largest man-made harbor and one of the top ten busiest container ports. Virtually all the major global shipping lines call on Jebel Ali making it one of the most important transshipment hubs, and an important feeder to African markets. Spread over an area of 57 square kilometres, Jafza is considered one of the largest and the most business friendly and efficient free zones in the world. Jafza started operations in 1985 with just 19 companies. It has been an effective driver for attracting foreign direct investment into the emirate ever since. The Free zone has registered 400-fold growth in the number of companies in the last 30 years. It is currently home to almost all leading brands in the world. The Free Zone is today the gateway and trade and logistics hub for the wider Middle East region that spans from West Asia, Indian Subcontinent, and Africa to the CIS. Most of the multinationals in Jafza have set up their regional headquarters in the Free Zone to serve the entire Middle East and African markets efficiently. Similarly the Middle East and African companies have also chosen Jafza to export their product and services within the region and beyond. Jafza is one of the main drivers of Dubai and UAE’s phenomenal economic growth and has contributed significantly in positioning Dubai as one of the world’s top business hubs. Jafza today accounts for more than a half of Dubai’s total exports and over a quarter of its total non-oil trade. The Free Zone also contributes to over 20 per cent of Dubai GDP on year-to-year basis. Exceptional Transport and Logistics Infrastructure Jafza is one of the most connected free zones in the world. It is the only free zone in the world which is located between the two top trade enablers viz. Jebel Ali Port, the largest container port between Rotterdam and Singapore and Al Maktoum International Airport, the region’s leading international airport designed to be the largest air cargo hub worldwide. The recently opened custom- bonded Dubai Logistics Corridor connects the Free Zone with these two enablers making the transfer of goods from port to cargo aircraft in just 30 minutes. The Free Zone is also just 30 minutes’ drive away from the Dubai International Airport, the busiest airport in the world. Jafza is directly connected to the country and the region’s major motorway and railway (Metro) with two metro stations located within the Free Zone. Upcoming Etihad Rail (Union Rail) will have a station in the Free Zone allowing Jafza companies’ rail connection to the entire Arabian Peninsula as well, besides sea, air and road transportation modes. Jafza: The trade and logistics hub for the Middle East and Africa FIATA RAME-2015 6 NAFL News | March 2015
  • 7. The Free Zone is home to over 200 leading logistics companies including UPS, Danzas, DHL, Fedex, Aramex, GAC, Agility, J Steinweg among others who provide state-of-the-art 3PL and 4PL services to large global businesses within the Free Zone. These logistics companies offer best in class warehousing and storage facilities including most modern cold storage for perishables and specialised temperature controlled storage and transportation facilities for pharmaceutical industry in the Free Zone. In 2014 UK based Financial Times’ fDi magazine awarded Jafza “The Global Free Zone of the Year for Large Companies”. The Free Zone was also recognized “The Free Zone of the Year – Middle East and North Africa for Large Tenants.” Incentives and solutions: Jafza offers single point customs clearance facilities within the Free Zone and a custom- bonded corridor to enable transfer of goods from port to cargo aircraft or from cargo aircraft to a ship enabling the transfer from one mode to another in just 30 minutes. As a Free Zone Jafza offers 100 per cent foreign ownership; 0 per cent corporate tax for a period of 50 years and more; 0 per cent re- export duties and 0 per cent personal income tax. There is no restriction for repatriation of capital and profits and no restriction on hiring foreign employees. Facilities Offered In Jafza: Jafza offers a variety of facilities to help meet the needs of all types and sizes of companies right from a start-up to a large multinational. Its highly flexible options include Plots of Land, Warehouses, Showrooms, Customised Development Solutions, Offices, Business Park, Retail Outlets and On-site Residence. Plots of land Jafza provides infrastructure ready plots of land of various sizes for long term lease. These sites are ideal for companies who wish to construct their own facility, whether it is a regional headquarters, warehouse or a factory. Warehouses The Free Zone offers pre-built warehouses to meet customer’s need for high quality storage and light manufacturing. The pre-built warehouses are high quality, thermally insulated purpose-built units available on rental basis. The units are fitted with additional features which allow for the construction of offices. For further convenience two exits - one ramp for fork-lifts and the other, a loading dock for containers and trucks - are located at the rear of the warehouse. Showrooms Jafza offers showrooms with dedicated ware- house and office space over two floors and prime showroom frontage Customised Development Solution Customised Development Solution is an innovative offering of Jafza that addresses customers’ industry specific needs and requirements. It includes extensive services from network planning, site selection and project design to development with customer specific infrastructure or superst-ructure. Offices Jafza offers office space for lease spread over a range of high and low rise facilities. Office clusters within Jafza are conveniently located to ensure easy for both staff and visitors and each office area is unfurnished, ensuring each customer the ability to express their own individual style. Customers can lease any area of office space they desire, from a floor in high rise to an entire building. Jafza tailors each office to suit the needs of each customer and works to tailor layout and design to requested specifications. The existing infrastructure throughout Jafza is impeccable. Business Park Business Park provides ready-to-use, fully furnished and equipped offices, with no setup cost, designed for a customer’s short term or long term use. Customers using Business Park facilities can upgrade to a fully-fledged office when they need and are counted as part of the Jafza community. Retail outlets Jafza has a choice of retail outlets spread throughout the Free Zone offering a range of retail possibilities right from a food outlet to a convenience store. On-site Residence Jafza offers accommodation for company labour within the Free Zone. Operational Efficiency To ensure operational efficiency of the highest order Jafza has pioneered and perfected the Jafza – Africa connectivity Jafza based companies enjoy excellent multi-modal connectivity to reach all key markets in Africa and the Middle East. Sea Jebel Ali Port provides 13 weekly mainline services to Africa, which includes 3 services to West Africa, 6 services to East Africa and 7 services to South Africa. These mainline services are supported by a large number of feeder services that serve smaller markets within the region efficiently. Air Dubai International Airport serves most of the African Airlines including Egypt Air, Ethiopian Airlines, Kenya Airways, Royal Air Morac and South African Airways. Dubai’s Emirates Airline serves 21 major African destinations in addition to four cargo destinations while Flydubai serves six destinations across major African countries. concept of one stop shop by integrating people, products and services. All regulatory and administrative services are made available under one roof to ensure that its customers can set up and start their operations in record time. This is made by possible by the integration of all partner entities such as Dubai Customs, Immigration, Dubai Police, Dubai Health Authority, Dubai Trade, RTA, Dubai Courts, DEWA, Environment, Health and Safety, Land Department, Emirates ID, Dubai Chamber and others in one place. Company Formation Jafza allows the formation of a company under one of the three categories – Free Zone Company (FZCO), Free Zone Establishment (FZE) and Branch of a Company. FZCO registration allows for multiple shareholders, and shareholders can be individual person or company. FZE registration allows for a single shareholder, and shareholder can be individual person or company. Both are essentially Limited Liability Partnerships within the Free Zone. Branch of a Company is a legal entity of its parent company. A company established outside of Jafza may establish a branch within the Free Zone. Licence Jafza issues the following types of licences for operating a business in the Free Zone Trading Licence A trading licence allows the holder to import, export, distribute and store items specified on the licence. In addition to this, there is a General Trading Licence, which allows the holder access to a wider range of activities and a broader range of items on the licence. Service licence A Service Licence allows the holder to carry out the services specified on the licence within the Free Zone. The type of service must conform to the parent company’s licence issued by the Economic Department of the relevant emirate of the UAE. Industrial Licence An Industrial Licence allows the holder to import raw materials, carry out the manufacture of specified products and export the finished product to any country. In addition to this, there is also the National Industrial Licence, issued for manufacturing companies with at least 51 per cent AGCC (Arabian Gulf Co- operation Council) ownership, with the condition that the value added to the product in the Free Zone must amount to a minimum of 40 per cent. This licence allows the holder the same status as a local or AGCC inside the UAE. Jafza allows the formation of an Offshore Company. An Offshore Company is a company which does not conduct substantial business in its country of incorporation. Any one or more persons may apply for the formation of an incorporated offshore company with limited liability in Jafza. March 2015 | NAFL News 7
  • 8. Dubai Chamber enhances trade and commercial ties across African continent A frica is the world’s second- largest and second-most- populous continent. With 60 per cent of its population under 40, Africa’s economic future is being driven by a young workforce of consumers, entrepreneurs and business people. It is clear Africa has significant potential for future growth and Dubai with its strategic location and ease of doing business is a gateway into and out of this high-growth region. Dubai Chamber of Commerce and Industry has been working to enhance trade and commercial ties across the continent for a number of years now. In January, Dubai Chamber strengthened its presence in Africa by opening a new office in Accra, Ghana, providing a gateway for UAE businesses to West Africa’s 250 million consumers. The new office in Ghana marks the second office in Africa. The first, in Ethiopia, was inaugurated in 2013. These developments underscore the commitment of the Dubai Chamber to strengthening economic ties with Africa. Speaking at the official opening ceremony, HE Hamad Buamim, President & CEO of Dubai Chamber, said: “The launch of this office is an important development in the expansion of Dubai Chamber’s footprint in Africa and sends a strong signal of our commitment to enhance ties both in Ghana and in the West Africa region. “This new office will open up a wave of opportunities for Dubai businesses and their competitiveness to reach out to the West African region while facilitating Ghanaian enterprises to use Dubai as an ideal gateway for Ghanaian exports to the Middle East region, South East Asia and Europe”, added HE Buamim. Ghana stands out as a beacon of safe investment in Sub-Saharan Africa, thanks to a strong GDP growth forecast and stable political environment conducive for business. Meanwhile, Ethiopia, which is the fifth largest economy in Africa and poised to become the third largest in the next 10 years, enjoys a strategic location at the crossroads between Africa, the Middle East and Asia. Dubai Chamber’s next destination in Africa will be Mozambique in southeast Africa, which in 2013 was Dubai’s 93rd largest global trade partner with total non-oil trade worth Dhs 951 million. During the past few years Dubai Chamber has organised several conferences and events focused on building greater relations with Africa, including trade missions, roundtables and Country Focus Briefings. Since 2013 Dubai Chamber has organised the annual Africa Global Business Forum (AGBF), held under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai. AGBF provides an extended opportunity to review Africa’s diverse business cultures and a platform to explore some of the opportunities for establishing joint partnerships with Dubai’s private sector. As the Forum brings Africa and the world to Dubai, its spotlight falls on Dubai’s status as an East meets West destination and a world-class hub for major global events, exhibitions and conferences. In addition, it also highlights the emirate’s accessible corporate climate, unconditional government support to foreign investors as well as its advanced infrastructural, banking and financial services. The last AGBF in 2014 attracted more than 1,000 delegates from 62 countries and was the platform for 132 business matching meetings between Dubai and African business people. The conference will be held once again this year in November. Dubai Chamber is also supporting Dubai-Africa business relations through the investment in new smart technology. In December 2014, the organisation launched the Africa Gateway Smart Application which is considered a milestone in the world of business and finance as it allows exclusive access to investment opportunities in Africa, market dynamics, as well as information on bidding for tenders across the continent. The Target Markets section of the application features six African countries including Angola, Ghana, Kenya, Nigeria, Tanzania and South Africa, where several columns provide information on key data, political outlook, economy, key sectors, trade, foreign investment, business environment and UAE relationship including export and re-export opportunities. Information is also available in the Do Business section which has services, offices, opportunities, events and Dubai business where users can register for participation in events and forums or request for special studies on important sectors of the market, or view the bidding opportunities in all African markets. FIATA RAME-2015 Dubai Chamber is supporting Dubai- Africa business relations through the investment in new smart technology. In December 2014, the organisation launched the Africa Gateway Smart Application which is considered a milestone in the world of business and finance as it allows exclusive access to investment opportunities in Africa, market dynamics, as well as information on bidding for tenders across the continent 8 NAFL News | March 2015
  • 9. W ith the latest technology brought to operations and processes along with the range of services provided via smartphone mobile applications, Jebel Ali is now considered one of the world smartest ports. Dubai’s port has the most modern infrastructure, equipment and technology to ensure the best efficient services and to help DP World customers realise the benefits of scale the new, larger vessels bring. In 2014, Jebel Ali port delivered another record year handling 15.2 million TEU (twenty foot equivalent container units), representing year on year growth of 11.8 per cent. DP World is adding new capacity at Jebel Ali Terminal 3 to ensure its ability to handle future capacity demand in Dubai. As the world’s largest semi-automated facility featuring state-of-the-art remotely controlled cranes it will further enhance our efficiency and capabilities. This new capacity at T3 is expected to come on line in the second half of 2015, taking total capacity at Jebel Ali Port to 19 million TEU. Jebel Ali has consistently maintained its leading position and this is due to Dubai and the UAE’s position as the centre for trade in the region, which our port has supported and driven with constant investment in infrastructure to stay ahead of demand. DP World remains committed to investing in Jebel Ali to support the further development of Dubai and the UAE, in cooperation with our customers, partners and our employees. Jebel Ali is ranked the world’s most productive according to the port productivity report 2014 of the respected US-based Journal of Commerce (JOC). Dubai led the industry with an average of 138 moves per vessel hour (MPH) at Jebel Ali terminals. The port beat 483 ports world-wide, and topped the list of the world’s top 25 ports after analysis of more than 150,000 port calls. Given the move to larger and larger ships, Jebel Ali also tops the list of ports handling vessels with capacity of more than 8,000 TEU with an impressive 163 MPH. In 2014, Jebel Ali was ranked as the ninth largest container terminal in the world. Seven of the top 10 are in China, with the other two being Singapore, and Pusan, South Korea. Since 1997, Jebel Ali has maintained its position as the only port outside the Far East to make it into the latest Top 10 list of the world’s largest ports. This excellent performance by DP World team in the UAE has made Jebel Ali stand out among its peers. The performance has also allowed Jebel Ali to retain its title as the Best Seaport – Middle East title for the 20th year in a row. It is raising the bar again with the forthcoming opening of the new Container Terminal 3. The new Container Terminal 3 is set to be the world’s most advanced maritime terminal, featuring 19 of the largest, most advanced and semi-automated ship to shore (STS) quay cranes and 50 fully automated rail mounted gantry (ARMG) yard cranes, which will be remotely operated from the comfort and safety of a control room. With the strategic acquisition of EZW, the home of Jebel Ali Free Zone, DP World customers will Jebel Ali Port at a glance benefit from the seamless supply chain services Jebel Ali Port and Free Zone will offer. The port and the free zone have driven the growth of Dubai and the wider region over the years. Together, both entities will offer a seamless service to shippers and shipping lines, linking sea, road and air across the port and the free zone to the new Dubai World Central (Al Maktoum Airport) via the Dubai Logistics Corridor to help them further improve efficiency. Once fully operational next year, Terminal 3 will add a further 2 million TEU to the total capacity of Jebel Ali, which will be able to accommodate ten mega vessels of 18,000 TEU simultaneously. Jebel Ali Port’s Container Terminals are equipped with 26 berths and 89 cranes to cater for them. They can accommodate ships of any size in existence and on the order book. Last year, the port welcomed the MV UBC OTTAWA, the world’s largest sugar carrying vessel. It arrived from Sao Paolo, with 106,000 tonnes of sugar discharged at the Al Khaleej Sugar berth. Dubai also welcomed the largest ever bulk carrier vessel to call at Jebel Ali. The Saba Shipping’s “Mega Star”, more than a quarter of a kilometre long at 229 metres, was carrying around 79,000 tonnes of reinforcing steel from Turkey, destined for Dubai. Jebel Ali Port has unparalleled sea connectivity, with over 90 weekly services to over 140 ports worldwide. It has intermodal connectivity, by sea, land and air, and can handle break-bulk, bulk, roll on - roll off cargo, livestock and all other general cargo. FIATA RAME-2015 March 2015 | NAFL News 9
  • 10. D ubai World Central (DWC) represents a proposition that no astute logistics business can afford to overlook. Projected to become a smart city that will ultimately support a population of one million, DWC hosts the emirate’s second airport, the Al Maktoum International (AMIA). Upon completion, it is slated to become the world’s largest airport, capable of handling over 200 million passengers and 12 million tonnes of cargo each year. Already, several global and regional organizations are moving into Dubai World Central and more are on the way. These include Emirates SkyCargo, Dnata, DHL (Danzas), DB Schenker, Hellmann Logistics, Aramex, RSA Logistics, Kuehne + Nagel, Panalpina, Ikea, Nestlé and Landmark Group. According to Rashed Bu Qara’a, COO, Dubai Aviation City Corporation, investors recognize that Dubai World Central represents the future of Dubai, and are acting now to seize the first-mover advantage. Bu Qara’a explains: “Dubai is the convenient geographical mid-point that facilitates cargo pathways in any direction, especially for goods flowing from sea-to-air. On the one hand we have one of the world’s finest and busiest sea ports at Jebel Ali, and on the other we have the world’s busiest airport located 50 kms away from Jebel Ali. Dubai World Central with the Al Maktoum International Airport at its heart introduces much-needed capacity and leads to the expansion of infrastructure. It is changing the dynamics of logistics in a way that is advantageous to businesses regionally and around the world.” ACitybuiltforSpeed,AccessandConnectivity A look at the DWC master plan reveals that advantage: A 145 sq km area demarcated into eight different districts that form an integrated urban ecosystem. Zooming in on the center we see the Al Maktoum International Airport, flanked by the 21 sq kms Logistics District. Built for speed, ease of access and connectivity, Dubai World Central is seamlessly linked to Dubai World Central- Making of a Logistics Giant In the world of logistics, Dubai World Central is a name that is being closely watched. Spanning 145 square kilometres, it is a smart city that features – what will eventually become – the world’s largest airport. This article looks at how DWC is delivering on its promise to offer an unprecedented level of speed and connectivity, thus beginning a new chapter in international trade and logistics. Jebel Ali Port – a 10-minute drive away – via the Dubai Logistics Corridor. Multiple entry and exit points to and from DWC facilitate cargo movement to different parts of the UAE. Cargo trucks ply seamlessly between AMIA and DXB. And with Etihad Rail expected to have a dedicated terminal at DWC, it will introduce yet another mode of transport to the city. Mohsen Ahmad, Vice President of Logistics District, at Dubai World Central, says that everything was designed to maximize ease of transport, while keeping transit time and costs to a minimum. “The Logistics Corridor is a bridge that links DWC with Jebel Ali, transforming the area into a single customs bonded zone. This eliminates the need for repeated customs checks and saves time and costs – very useful, for instance, when it comes to the passage of high-value goods. Therefore, goods that arrive by ship at Jebel Ali Port can be ready for takeoff on the AMIA runway in a matter of hours, en route the next leg of their journey.” This is an advantage available to all companies based in DWC. Ahmad says: “The Logistics District offers the most effective base for companies for which sea-to-air movement of goods is crucial. It affords direct landside access to Jebel Ali Port and direct airside access to the airport. There are obvious advantages as it helps save precious time and resources.” “An unrivalled gateway to MENASA markets” Ahmad says that as AMIA undergoes its US$32 billion expansion over the next six to eight years, more companies are expected to set up base at Dubai World Central. He adds: “The district is built from the ground up to facilitate fast-cycle businesses. We also facilitate companies that wish to offer value- added services such as light manufacturing and assembly. So whether our partners need office spaces, warehouses, distribution centers – ready-to-occupy or built-to-suit – we have options of rent or lease at highly competitive terms, along with all free zone benefits. Also the majority of our partners appreciate DWC as their home base because it allows them an unrivalled ringside view of MENASA.” The countries of MENASA represent around 30% of the global population, more than half of which are under 25 years of age. By 2022-2023, the region is projected to have a combined GDP of US$12.8 trillion. Ahmad concludes: “The forces of demand and supply in MENASA alone will bring immense opportunities for logistics providers. We are quickly preparing a world-class ecosystem which will allow companies to operate with more ease and speed than ever before.” FIATA RAME-2015 Rashed Bu Qara’a COO Dubai Aviation City Mohsen Ahmad Alawadhi VP - Logistics District Dubai World Central 10 NAFL News | March 2015
  • 11. Tourism Vision 2020 Dubai Tourism sets sights on making Dubai the destination of choice and is responsible for the licensing and classification of all tourism services, including hotels, tour operators and travel agents. Brands and departments within the DTCM portfolio include Dubai Convention and Events Bureau, Dubai Calendar and Dubai Festivals and Retail Establishment (formerly known as Dubai Events and Promotions Establishment). In addition to its headquarters in Dubai, DTCM operates 20 offices worldwide. Dubai Tourism Initiatives With the Tourism Vision firmly in mind, Dubai Tourism has put a number of legislative and organisational improvements and initiatives in place that not only enhance the traveller experience but also build on the destination offering. For example, in March 2014 legislation was implemented that saw the waiving of pre- entry visas for all remaining European Union member states, thus making entry into the country smoother; new ticketing and e-permit technology platforms have been introduced in an attempt to improve the efficiency within the burgeoning events industry in Dubai; and global communication has been significantly improved with the launch earlier in the year of Dubai Tourism’s new website and interative app. Talking about such improvements, His Excellency Helal Saeed Almarri, Director General of DTCM said:, “Travel and business eventsand steps taken to leverage the exemption of pre-entry visas for all European Union member states, are crucial to further strengthen ties with key markets and ensure that Dubai is positioned as a destination of choice for both new travellers and repeat visitors. “The 5.6 per cent increase in the number of hotel guests occurred despite the decrease in the number of Russian visitors. Dubai’s tourism industry is insulated from any short-term fluctuations within any one market and in 2015 we will continue to work with our partners to increase market share from newer markets. “Driven both by China’s share of global outbound travel and rising wealth and changing consumer habits in emerging markets, the global travel industry is poised for a period of sustained growth over the next decade: Dubai is well positioned to leverage these factors to drive growth of our tourism economy,” he said. ITB delegation As part of the DTCM’s continued efforts to promote the city globally, the department was joined by more than 80 tourism partners when it exhibited at ITB in Berlin, the ‘leading travel trade show’ held every March. The event was the perfect platform to update the visiting media and global trade about the new tourism assets within the city. Being showcased was Dubai 360 - the new nline virtual platform launched in January that allows viewers to explore Dubai from the comfort of their own home. Developed over an 18-month period and utilising 1,298 pieces of panoramic video and photo content, Dubai 360 was featured at the Dubai stand using special, immersive ocular technology, giving visitors the chance to virtually discover Dubai and experience different parts of the city and its adventure activities. Culture was another focus on the ITB agenda with a representative from the city’s Sheikh Mohammed Centre for Cultural Understanding (SMCCU) offering visitors insights and enlightening lectures about the culture of Dubai. With its motto being ‘Open Doors, Open Minds’, the remit of the SMCCU is to remove barriers between people of different nationalities and raise awareness of the local culture, customs and religion of the United Arab Emirates.Nasif Kayed, Managing Director, Sheikh Mohammed Centre for Cultural Understanding said: “ITB 2015 offered an amazing chance for interested visitors to engage with the Emirati culture. Attendees of the SMCCU seminars held at the DTCM stand, were keen to discover the reasons behind cultural behaviour patterns, religious practises and traditional customs of the Emirati culture.” FIATA RAME-2015 D ubai continues to find top place in the exploration diary of travellers by enhancing a sustainable portfolio of hotels and hotel apartments. Dubai’s hotel establishments welcomed 11,629,578 guests in 2014, registering a 5.6 percentage increase compared to the previous year. This takes Dubai closer to achieving its Tourism Vision for 2020, which aims to welcome 20 million visitors per year by the year 2020. Saudi Arabia was once again the top source market, followed by India, UK, USA, Iran, Oman, China, Kuwait, Russia and Germany. With the ultimate vision of positioning Dubai as the world’s leading tourism destination and commercial hub, Dubai’s Department of Tourism and Commerce Marketing’s (DTCM) mission is to increase the awareness of Dubai to global audiences and to attract tourists and inward investment into the Emirate. As the principal authority for the planning, supervision, development and marketing of Dubai’s tourism sector, the DTCM markets and promotes the Emirate’s commerce sector, Travel and business eventsand steps taken to leverage the exemption of pre-entry visas for all European Union member states, are crucial to further strengthen ties with key markets and ensure that Dubai is positioned as a destination of choice for both new travellers and repeat visitors HE Helal Saeed Almarri Director General DTCM
  • 12. E tihad Airways is a strong supporter of the National Association of Freight and Logistics (NAFL) and proud to be one of the sponsors of FIATA RAME 2015. And David Kerr, Vice President of Etihad Cargo welcomes you to Etihad at the event. The Fédération Internationale des Associations de Transitaires et Assimilés (FIATA) or International Federation of Freight Forwarders Association brings forward regional issues and assists members in addressing local industry issues, thus playing a vital role in the continued development of our sector. We are delighted that this year’s Region Africa Middle East (RAME) Field Meeting is being held in the United Arab Emirates, which is playing an increasingly important role in linking world economies and providing an air bridge that supports the increasing flows of trade and commerce between East and West. Established in 2004, Etihad Cargo is the fast growing cargo division of Etihad Airways. From its hub at Abu Dhabi International Airport, it offers a range of cargo services linked to an expanding international route network and fleet. Etihad Cargo’s total uplift in 2014 was over 570,000 tonnes, a 17 per cent increase on the previous year, generating over US$1 billion in Etihad Airways welcomes you at RAME 2015 revenue and it has grown to become a critical part of the airline’s business. During 2014, Etihad Cargo significantly enhanced its global reach by offering bellyhold capacity on 10 new passenger destinations launched across Etihad Airways’ fast growing network. These included destinations such as Medina in Saudi Arabia, Jaipur in India, Zurich in Switzerland, Yerevan in Armenia, Rome in Italy, Perth in Australia, Phuket in Thailand and Los Angeles, Dallas and San Francisco in the USA, bringing to over 100, the total number of passenger destinations on which cargo services are currently provided. Alongside this capacity, the airline also operates to 13 freighter-only destinations that include Bogotá, Chittagong, Dar es Salaam, Djibouti, Dubai World Central, Eldoret, Entebbe, Guangzhou, Hanoi, Houston, Kabul, Miami and Sharjah. Additional lower deck capacity is to be added to key destinations during 2015 including Kolkata and Madrid, which have been, with further passenger destinations scheduled to commence service during the year including Entebbe, Edinburgh, Hong Kong, Baku, Tiblisi and Dar es Salaam. Etihad Cargo has also launched a new temperature-controlled product in 2015 designed specifically to handle the increasing growth in shipments of pharmaceutical and other temperature-sensitive products. Etihad Cargo already has significant capability in the active side of the business using Envirotainer and Csafe, and is also developing improved facilities for the shipment of pharmaceuticals. Our cargo division is also in the final stages of certifying as a good distribution practice (GDP) trained organisation. As the largest cargo operator at Abu Dhabi International Airport, one of the fastest growing airline hubs in the Middle East, we are responsible for all cargo handling at the hub through our subsidiary, Etihad Airport Services – Cargo. This provides a tremendous business opportunity as larger volumes of cargo tonnage are being transported through and over the hub than ever before. To meet the needs of the future, the cargo facilities at the new Midfield Terminal at Abu Dhabi International Airport, scheduled to come on-line in 2017 are crucial to our success. The Etihad Cargo division is growing at a considerable pace and it will need world class facilities to sustain and meet the needs of its customers in the future. We welcome you to FIATA RAME 2015 and look forward to working alongside you again. FIATA RAME-2015 We are delighted that this year’s Region Africa Middle East (RAME) Field Meeting is being held in the United Arab Emirates, which is playing an increasingly important role in linking world economies and providing an air bridge that supports the increasing flows of trade and commerce between East and West. David Kerr Vice President, Etihad Cargo 12 NAFL News | March 2015
  • 13. NAFL at Dubai Trade’s 7th E-Services Excellence Award (ESEA) Pictorial Review N AFL participated at the 7th ESEA Awards held under the patronage of His Highness Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai. Representatives of nine winners selected after shortlisting and evaluation by the Award Committee, based on criteria that reflected the winners’ adoption of e-Services on the Dubai Trade Portal, received the awards. Awards of appreciation were given to customers who have pioneered in using and supporting the major two initiatives launched by Dubai Trade which are Tradeshield, the online cargo insurance platform, and Cargo Booking, a service that allow traders and freight forwarders to send cargo bookings to shipping agents. Dubai Trade has also awarded the Sponsors of the ESEA in its 7th edition including Al Futtaim Logistics as Gold Sponsor and to the Silver Sponsors: Agility, Freight Systems, Dar Al Takaful, Landmark Group and GBM. The high-profile ceremony was attended by H.E. Abdulla Al Saleh, Undersecretary – Foreign Trade and Industry Sector at the UAE Ministry of Economy, H.E. Jamal Majid Bin Thaniah, Chairman of Dubai Trade, Mr. Mohammed Al Muallem, Senior Vice President and Managing Director, DP World, UAE Region and Board Member of Dubai Trade, H.E. Ahmed Mahboob Musabih, Dubai Customs Director, Ibrahim Mohamed Aljanahi, Deputy CEO of Jafza and Chief Commercial Officer of Economic Zones World, Eng. Mahmood Al Bastaki, CEO of Dubai Trade and more than 400 guests including heads of government departments and private sectors, dignitaries, Dubai Trade business units, and large number of businessmen and members of the media. HE Ahmed Mahboob Musabih Dubai Customs Director Eng. Mahmood Al Bastaki Chief Executive Officer, Dubai Trade David Phillips President of NAFL March 2015 | NAFL News 13
  • 14. Members News A gility, one of the world’s largest logistics firms, plans to invest over US$100 million for expansions worldwide, while devoting a special focus to African growth. “We expect to invest about US$ 100 million this year with major investments in Africa and fastest growth regions to be Middle East, Asia and Latin America,” said Essa Al Saleh, the president and CEO of the company at a media roundtable held in Dubai recently. Agility wants to expand its footprint in Africa, particularly in S R Technics and Kuehne + Nagel announced that their successful partnership to provide customers of SR Technics with warehousing, spare parts logistics and distribution services would continue to develop. The aerospace industry in the Middle East is rapidly expanding. According to SR Techniques, its Regional Distribution Centre (RDC) in Dubai is already handling 65,000 annual transactions and it plans to almost double the transactions to 120,000 over the next five years. In line with the increasing volume, SR Techniques are also further developing its customer support services. To underpin such growth, the decision was taken to extend the partnership with Kuehne + Nagel in this region. The RDC service that SR Techniques delivers with Kuehne + Nagel’s assistance includes 24/7 global management of inbound and outbound SR Technics expands partnership with Kuehne + Nagel to support customers in the Middle East Agility to expand investments in Africa Angola, Nigeria, Mozambique and Ghana, which are emerging and oil producing economies. “We see a lot of opportunities in terms of oil and gas and in relation to growing economic development and wealth in Africa.” African countries according to Al Saleh may bring challenges initially, but they are investing in logistics facilitation strategies, as a result a positive economic growth becomes evident. The Middle East and Africa continues to be Agility’s fastest growing region, followed by Asia, Latin America, the United States and Europe. The company plans to grow its profits despite the dip in oil price, Al Saleh feels that though economy of oil producing countries in the Arabian Gulf region and Africa will be affected, it is an interim loss. However, the temporary fall in prices may provide ample growth opportunity in the long run. Al Saleh also says that despite the dip in oil prices agility has saved small amount of operational costs, as there is no big change in the pricing for capacity sold by airlines. “Earlier airlines and shippers would give us a price for shipping cost and for the fuel index, but many are shifting to a single all inclusive price structure that kind of blurs the fuel cost and this is one of the challenges,” Al Saleh noted. Shedding light on the Agility’s Emerging Market index Al Saleh pointed that UAE ranks 6th in the list and is expected move up in the ladder with moves by the governmenttofacilitateinvestment and infrastructure. However, the Index also identifies some barriers in the region like limited regulatory framework, skilled labour deficit and security concerns. Commenting on key growth sectors for Agilities operation in 2015 Al Saleh said that Oil and Gas remains the strongest sector followed by life sciences and chemicals logistics. In Conclusion Al Saleh emphasised that the consumer goods logistics remains Agility’s bread and butter. G AC Energy and Marine Services Limited in Trinidad & Tobago is now ISO 9001:2008-certified, completing the process for all GAC companies throughout the Americas region. The ISO 9001:2008 standard is based on a number of quality management principles including a strong customer focus, motivation and implication of top management, process approach and continual improvement. Certification formally recognizes the high standard of the company’s services in Trinidad and further assures GAC customers of quality, efficiency and compliance in Trinidad & Tobago. To gain certification, GAC Trinidad worked on enhancing the GAC Group and regional processes on which it was based when the company was established in 2011. Last year, GAC worked with the Lloyd’s Register Quality Assurance (LRQA) on a three-stage plan toward certification, including ISO awareness training, assessment, documentation review and audit, as well as the final certification audit. As Managing Director Gobind Kukreja explains, all employees were actively involved in the process. “Being a relatively small team of 14 employees we needed the involvement of all staff that was done with great enthusiasm and we passed the certification audit with zero non-conformities,” he says. GAC Trinidad & Tobago awarded ISO 9001: 2008 certification logistics for serviceable and unserviceable aircraft parts. Furthermore parts inspection, warehouse storage, brokerage, inventory control and a range of other supply chain services are provided. Withinthescopeofits“SupplytheSky”program, Kuehne + Nagel offers an integrated range of logistics services for the aerospace industry. The company develops and delivers customized aerospace solutions for manufacturers, leasing companies, airlines and service providers in the field of maintenance, repair, overhaul, ground handling and in-flight services. In Dubai these services are provided by the Kuehne + Nagel hub near Al Maktoum International Airport, which offers frequent and short connections to the Middle East region as well as other areas of the world. Felix Amman, Senior Vice President Components of SR Techniques said: ’’We have been working with Kuehne + Nagel for many years to serve our global customers. The Middle East region has huge potential for the future and as such we are pleased that Kuehne + Nagel will serve us and our customers from their Dubai hub.’’ “We welcome the decision by SR Techniques to extend our cooperation and we look forward to supporting their expansion in this very dynamic area of the world” added Erik Goedhart, Senior Vice President Aerospace of Kuehne + Nagel. Essa Al Saleh 14 NAFL News | March 2015
  • 15. Memmbers NewsMembers News DHL invests in new hub at Brussels Airport D HL will invest € 114 million (approx. US$129 million) in the construction of a new hub at Brussels Airport. The new hub is expected to triple capacity from 12,000 to 39,500 shipments per hour. The original Brussels facility was set up in 1985 as a regional hub. In the last five years, Brussels has enjoyed solid double-digit volume growth. Due to this continuous growth and its central location in Europe, the Brussels Hub is increasingly being used as an international and transit hub, which means that the current hub is nearing 100per cent of its capacity. Koen Gouweloose, managing director, DHL Aviation NV said, “The new hub will guarantee an even quicker and higher quality service. It will connect Belgian and other EU companies with 18 intra-European destinations and a number of important intercontinental destinations such as the US, China and Africa. In addition, DHL provides 64 road connections from Brussels directly to major business destinations in Europe. This will further reinforce the important position of Brussels in the European and global network, and strengthen Belgian trade connections with the rest of the world.” Today, DHL employs more than 4,000 people in Belgium, including 1,000 employees at the Brussels Hub. By 2020, DHL expects to create 200 additional jobs through this new investment. Arnaud Feist, CEO of Brussels Airport emphasised the importance of airfreight in Belgium, “Brussels Airport invests in different categories of air transportation like cargo, cargo on passenger airplanes and express deliveries. With this significant investment from DHL, we will further strengthen our position in Belgium as the logistics centre of Europe. This will have a positive influence on the balance of trade for our country, especially because it creates jobs. Every 100 tonnes of cargo equals one job. At the moment there are approximately 4,500 jobs at Brucargo. Our expectations this year are to add another 400 to 500.” The total surface area of the planned hub is 36,500 Sq m and consists of a new 31,500 Sq m sorting centre and a modern 5,000 Sq m office complex. DHL will also reduce its environmental footprint through the use of new, more efficient sorting technologies, better insulation, a new vehicle fleet that runs on natural gas, a solar park, environmentally friendly lighting and other measures, in line with DHL’s Go Green programme. For the Brussels Hub, this means an additional saving of 768 tonnes CO2 per year based on Vlarem2-regulations. Danny Van Himste, managing director DHL Express Belgium and Luxembourg, explained: “We strongly believe that this investment will not only stimulate further development of the export activities of Belgian companies, but also meet the rising demand created by international e-commerce. After all, more possibilities for the hub in Brussels and our high-performance network of service centres throughout the country mean greater flexibility, later pick-up times and better service for our customers.” New Singapore hub Driven by surging e-commerce and intra-Asian growth, DHL Express has continued with its planned investments across Asia with the latest announcement of a €85 million investment in a new express hub at Singapore Changi Airport’s 24-hour Free Trade Zone. Teo Ser Luck Singapore’s Minister of State, Ministry of Trade and Industry said the fact DHL was upgrading its hub in Singapore also boosts Singapore’s attractiveness as a global logistics hub. The construction of the DHL South Asia Hub is expected to be completed by the first quarter of 2016 and will occupy a land area of 23,000 Sq m and a total floor area of 23,600 Sq m. Brussels Airport invests in different categories of air transportation like cargo, cargo on passenger airplanes and express deliveries. With this significant investment from DHL, we will further strengthen our position in Belgium as the logistics centre of Europe. This will have a positive influence on the balance of trade for our country, especially because it creates jobs. Every 100 tonnes of cargo equals one job. At the moment there are approximately 4,500 jobs at Brucargo. Our expectations this year are to add another 400 to 500. The fully automated express package sorting and processing facility will be able to handle a cargo throughput of more than 628 tonnes per day when at full capacity and process shipments at the speed of 14,000 shipments per hour. In comparison, the manual processing system in the current facility handles up to 225 tonnes per day at a speed of 2,400 shipments per hour. Commenting on the development, Jerry Hsu, CEO, DHL Express Asia Pacific, said: “The DHL Express South Asia Hub reinforces our global multi-hub strategy by leveraging the unmatched regional connectivity provided by Changi Airport and Singapore.” March 2015 | NAFL News 15
  • 16. Members News F orming mutually beneficial strategic relationships with key suppliers and business partners enables companies to focus on their core business, while leveraging the expertise and experience of industry leaders in order to fast-track innovation and enter into new markets. Barloworld Logistics and LBH Africa have formed such a partnership to offer dry bulk commodity supply chain solutions to clients into and out of southern Africa. The Barloworld Logistics and LBH Africa team will act as a single point of contact between clients and multiple service providers across the dry bulk supply chain. By integrating processes and managing multiple suppliers, the team offers integrated multimodal management solutions that enhance visibility and improve security, service and efficiency across the supply chain, while simplifying and reducing the administration of the movement of dry bulk commodities. Steve Ford, Chief Executive of Barloworld Logistics said, “Our partnership with LBH Africa is indicative of our strategy to leverage our supply chain expertise and grow our service offering into niche markets. The combination of our specialist skills and in-depth practical knowledge enables us to customize, optimize and enhance dry bulk commodity logistical processes, and in so doing, reduce operational costs, improve service and increase reliability.” Athol Emerton, Managing Director of LBH Africa, continues: “Providing cargo owners with relevant real-time information and stock level visibility across the supply chain will enhance accurate cargo and ship planning, minimising demurrage and potentially facilitating early funding mechanisms that enhance cash flow. With our partners, we will be able to improve on issues such as truck congestion at mine and port; standardised PODs and prompt or regular contractor payments. All of these frustrate efficiencies, but they can now be an issue of the past!” The team is focusing on offering dry bulk commodity solutions for grains, chemicals and minerals. Both businesses are strategically positioned and globally connected through an established freight network on international trading routes, ensuring a comprehensive understanding of local and international markets, customs and excise law requirements and to deliver the safe and cost-effective movement of goods inland, through ports and across borders and oceans. Ford continues: “Technology plays a vital role in increasing visibility across the supply chain, delivering insightful management information, enabling faster, smarter, more successful decision-making and better control across the supply chain. The combination of our supply chain capabilities and integrated technology platform with LBH’s in-depth understanding of bulk commodity movements enables both parties to offer customers a more holistic, optimised and value-adding supply chain solution with superior safety and governance standards.” “This is a very exciting partnership. We are delighted to provide customers with a unique ‘lighthouse visibility’ solution and look forward to continually innovating to create the most Barloworld Logistics, LBH Africa partner to deliver excellence in bulk competitive and secure bulk solutions in the industry for our customers and to potentially rolling these out into other regions over time,” concludes Emerton. Barloworld launches crane division A crane division has been added to Barloworld Transport, extending the company’s offer to a full range of transport, lifting and handling services in South Africa. Barloworld Transport is part of Barloworld Logistics Group. Barloworld Cranes will be run by Rebone Motsatsi who has been appointed managing director and Ian Gerrard will be operations director. Motsatsi is an industrial engineering graduate with logistics industry experience. At Barloworld Logistics he was business development head: mining & construction. Gerrard has more than 40 years of experience and is an expert in crane, rigging, heavy lifting and heavy transport projects, Barloworld said. The fleet is seven Liebherr all terrain cranes between 40 and 200 tonnes capacity and six Tadano truck mounted cranes from 34 to 60 tonnes. The crane depot will be in Isando, Kempton Park. Additional services offered include rigging engineering, CAD job planning, integrated project solutions, site inspections, risk assessments and project management. Commenting on the new division, Steve Ford, Barloworld Logistics chief executive, said, “Barloworld Cranes represents another step in our journey of investing in niche products and services enabling us to offer our clients more holistic supply chain solutions. It is a natural fit to our business, specifically for clients needing to move abnormal cargo or engaging in specialized projects.” Neil Henderson, Barloworld Transport chief executive, said, “Having identified the growing need for dedicated transport and lifting services, the new division will allow the group to provide clients with a comprehensive, turnkey solution, all from one provider. Under the guidance of a strong and highly experienced management team, Barloworld Cranes will offer tremendous value and scope for clients – both in southern Africa and beyond.” 16 NAFL News | March 2015
  • 17. Members News Dubai’s Aramex proposes 14 per cent cash dividend for 2014 D ubai logistics firm Aramex said on Wednesday its board had proposed a cash dividend of 14per cent or Dhs0.14per cent share for 2014, up from Dhs 0.115 it paid a year earlier. Last month, the firm’s CEO predicts a 10per cent profit rise in 2015. The figure will depend on the impact of oil prices and the euro, Hussein Hachem told a press conference in Dubai, while adding he believed a further drop in oil prices would contribute to an estimated 5-10per cent reduction in the firm’s freight costs. Aramex unveiled its 2014 financial results last month, reporting a net profit of Dhs318 million (US$86 million), up 15per cent from Dhs278 million in 2013.Its fourth quarter net profit was up 17per cent on the previous quarter, to Dhs89.4 million. Chief financial officer Bashar Obeid told reporters, Aramex was in discussions with a consortium of local banks and preparing to sign for a US$150 million five-year loan with a six-month draw-down in the next 10 days.The debt will be used to finance new acquisitions and further expansion following an acquisitive year in 2014. Aramex bought the master franchise for South African retailer PostNet in October for $16.5 million and Australian courier service Mail Call Couriers in June.It is targeting three acquisitions in 2015, in key growth markets including Africa – particularly Nigeria – Asia and elsewhere in the GCC, Hachem said. The firm would seek to buy “someone who looks like us and complements our model”, he added, but declined to reveal further details. He also said Aramex would seek to rationalise its portfolio of logistics warehouses in 2015 either through disposals or sales and leasebacks to remain as lean as possible. It owns around 300,000 Sq m of property across the GCC. C oyne Airways has appointed KIWI Logistics Cargo GSA as its General Sales Agent in Singapore. Established in 2013, KIWI Logistics Cargo GSA is bringing a fresh approach to airline cargo sales in this developed market, with a focus on efficiency, simplicity and reliability. “We are delighted to be working with this young and ambitious GSA that shares many of the same values on which Coyne Airways was founded over 20 years ago. Singapore is at the forefront of our push to increase sales in the Asia Pacific region and I am confident that together with KIWI Logistics we can do just that,” said Coyne Airways CEO, Larry Coyne. Coyne’s services to the oil and gas markets around the Caspian Sea, including Aktau and Atyrau in Kazakhstan, are particularly popular with freight forwarders in Singapore due to the city-state’s position as a regional centre of excellence for the oil and gas industry. KIWI Logistics Cargo GSA General Manager, Ms. Joanne McConachy sights the appointment by Coyne Airways as an auspicious relationship due to the business synergies between both parties. “We are very enthusiastic to represent Coyne Airways in the Singapore market and look forward to the growth and development of these specialized products. Operating from a stable and strategically solid hub, we will provide our clients with seamless airfreight solutions that extend beyond current market offerings.” Coyne Airways has come of age in 2015, celebrating its 21st birthday, and is building its network with new destinations in Africa, working with regional partners to link Asia, the Middle East, North America, and Europe with the African Continent. C onsoleShippingServicesIndia has started their operations from Ahmedabad, one of the fastest growing cities in India. Being strategically positioned in Ahmedabad, CSS India will be easily able to access and control the operations of cargo movements at Pipavav, Mundra and Hazira Port. Also they will have access to LCD Dashrath, Baroda and LCD Ankleshwar. Ahmedabad is centrally located in Gujarat where major development programmes are progressing. The cargo movements to all ports are possible via road and rail from here. Container Corporation of India handles the rail movement of cargo while truck movements are quite common in the region. Major shipping companies confirm their presence in Ahmedabad to have control over the North Western region of India where in and out movements of cargo are frequent and fast growing. CSS India will initially have LCL, FCL and Air Freight movements in and around Ahmedabad. They have set up road map to gradually increase their geographical reach in the North Western area. The well- established Mumbai office of the CSS will be a major advantage for the Ahmedabad team with proper guidance and professional support. Ahmedabad office of CSS will be headed by Kaushik Mali, who is quite confident in his professionalism and the ability of his team. Console Shipping Services India Pvt. Ltd. established in the year 2004 with its operations from Tirupur, Tuticorin and Coimbatore, further expanded its horizons in the year 2007. In an ever increasing demand stuffed industry, Console Shipping Services India has proved to be delivering the best to the clients around the globe. CSS India operates from Delhi, Mumbai, Chennai, Tirupur, Tuticorin, Coimbatore, Banaglore and Cochin serving a cross section of clients from diversified industries. Coyne Airways appoints KIWI Logistics as new GSA in Singapore CSS starts its operations from Ahmedabad March 2015 | NAFL News 17
  • 18. T he expansion, which was announced by the UK’s Secretary of State for Transport, Patrick McLoughlin MP, will increase deep-sea access for ships using the port. Contracts for civil and electrical works at berth build have been awarded to Volker Fitzpatrick, and four additional quay cranes have been ordered from ZPMC. “The continued expansion of London Gateway port proves Britain is a country where companies want to invest,” said McLoughlin during the announcement. DP World plans for a third deep-sea berth at London Gateway UASC orders 2,000 new reefer units “The new third berth will create hundreds of jobs and is a signal that the UK maritime sector is continuing to grow. The maritime sector directly contributes to £14bn (US$21.52bn) to our economy every year, and supports more than a million jobs. “Having visited the port, I have seen for myself what a fantastic piece of infrastructure it is and the opportunity that exists for even further growth and expansion at this site. Putting in place the right foundation to allow businesses like DP World to prosper in the UK is part of the government’s long- term economic plan,” he added. DP World’s London Gateway is located 40km away from the UK capital, and has 16m consumers within an 80km radius. The terminal operator contends that the additional capacity will help bring ships closer to key areas of consumption, such as London, Birmingham, and Manchester. “Since opening, DP World London Gateway has continued to attract more shipping line services and we remain committed to increasing speed and efficiency in supply chains,” said Jamal Majid Bin- Thaniah, the company’s vice chairman. Simon Moore, DP World’s chief executive officer, added: “As the port continues to win new business, we are now announcing berth three in line with our customers’ needs, and we are delighted the Transport Secretary was able to visit the port and see for himself the facilities and the infrastructure we have created to reduce supply chain costs.” London Gateway’s third berth will open up an extra 400m of quay length, with a dredged depth of 17m alongside. The additional capacity is scheduled to become operational during the second half of 2016. U nited Arab Shipping Company (UASC) recently announced an order of 2,000 reefer containers from Daikin. The order marks the first milestone in the expansion of the container shipping line and global carrier’s reefer services and underpins the company’s ongoing investment in solutions for the carriage of frozen and chilled cargoes. The containers will be fitted with Daikin’s latest LXE 10E model reefer unit - the H model, which use 50per cent less energy than the earliest model, introduced in 2001. The units have a highly sensitive temperature control system, making it suitable for any weather condition and all types of cargo. With an average reefer container age of three years, UASC’s progressively expanding reefer fleet is one of the youngest in the industry and this order of an additional 2,000 reefer units represents a considerable increase in the overall size of UASC’s reefer fleet. This investment will support the growth of existing services and enhanced geographic access to the South America trades, following the recent service agreement with Hamburg Süd. Gareth Madsen, head of reefer management, UASC commented: “The progressive expansion of UASC’s fleet of refrigerated units ensures enhanced reefer availability for all our customers. We are committed to driving down costs, optimizing networks and continuously improving the services that we offer. “This order for 2,000 units from Daikin will enable UASC to deliver the right level of accessibility, quality and efficiency for the carriage of frozen and chilled cargoes. UASC will be placing more orders of reefer units this year. More details will be released once plans are finalised. “In terms of quality, performance and reliability, Daikin’s latest reefer units set the industry benchmark. In addition, it fits UASC’s overarching commitment to investment in eco-efficiency and environmentally responsible operations, which we believe is good for our business, good for our customers and good for our planet.” Katsuhiro Tetsuya, Reefer Container Division Director, Daikin said: “It is a privilege to be part of UASC’s ambitious growth strategy. The latest Daikin LXE 10 E ‘H’ Model sets new standards in terms of energy efficiency and reliability, directly supporting UASC’s focus on delivering outstanding customer service.” This announcement follows three deliveries of 15,000 teu vessels from UASC’s current new building program (comprising 17 ships - eleven 15,000 TEU vessels and six 18,800 TEU vessels), as well as co-operations with leading liner shipping companies CMA CGM and China Shipping Container Lines (together forming the Ocean Three alliance), as well as the extensive cooperation agreement with Hamburg Süd Group. Ports & Shipping 18 NAFL News | March 2015
  • 19. Ports & Shipping Gulftainer to deploy SAP solutions G ulftainer, a privately-owned, independent terminal operating and logistics company, has named SAP as its strategic technology partner. Under the terms of the agreement, Gulftainer will deploy a range of SAP solutions running on the SAP HANA platform, across fields such as enterprise resource planning, finance and payroll, and business planning and consolidation. Ramesh Shivakumaran, group director business services, Gulftainer, said: “A flexible and efficient IT platform is critical to supply chain and logistics. At Gulftainer, we are committed to provide the highest standards of operational efficiency and partnership with SAP will enable a more efficient, cost-effective movement of international business through our terminals, providing actionable data necessary to increase productivity and reduce costs. “Throughcontinuousimprovement of our business processes, we believe we can deliver better services and, as a result, gain competitive advantage.” The Middle East’s transportation and logistics market is expected to grow to US$27 billion by 2015 with automation, ordering A bu Dhabi Terminals (ADT) announced the start of a direct weekly service to and from Karachi, Pakistan, calling at Khalifa Port Container Terminal (KPCT). ADT, which core business is to manage and operate Khalifa Port Container Terminal, stated that the Pakistan Saudi Express Service (PSX) will offer importers and exporters the opportunity to directly service Karachi. By using KPCT as the direct link to and from Abu Dhabi, the service has a projected journey time of 3 days offering time savings for trade customers. The PSX Service is operated by Taiwanese Wan Hai Lines and was launched in October 2014 providing the fastest connection from Damman to Karachi. The first vessel under this intra-Gulf service will be Wan Hai 172/ E204 which is scheduled to call KPCT around 19th February 2015. The port rotation is Jebel Ali-Karachi-Abu Dhabi-Jebel Ali-Bahrain- Dammam-Jubail. “With bilateral trade increasing between the two countries and the growing demand from some of our Abu Dhabi based key customers, Pakistan has been on our wish list of direct destinations.” said Arshad Kunnummal, Commercial Director, ADT. “KPCT currently has connectivity to more than 50 direct ports serviced by 20 global shipping lines. We are delighted to be able to enhance our network and we believe that the high demand that we are seeing to this destination will open up more possibilities in the future.” he added. Khalifa Port adds new direct service to and from Pakistan management and real-time tracking supporting rapid growth. The UAE’s Vision 2021, aims for the country to rise from No 27 to the top 10 in the world in the World Bank’s Logistics Performance Index. Tay fun Topkoc, managing director, SAP UAE, said: “Port operators worldwide face increased congestion and regulations, along with an increased drive towards sustainability. Our technology solutions will enable Gulftainer and the UAE to become leaders in using technology to innovate operations, support a mobile workforce and operate more safely.” Vinay Sharma, roup IT Manager, Gulftainer said: “Increasing automation has a significant impact on the supply chain and logistics sector and need to integrate all our stakeholders including customers, supplier, employee to have extended enterprise. “We needed our data analysis solutions to provide real-time insights of our business operations to have better decision making system, which we achieve through SAP-HANA partnership. By building a strong IT infrastructure to strengthen our operational efficiency, we are contributing to the fast evolution of the UAE as one of the world’s most advanced logistics hubs.” Additionally, Gulftainer will be partnering with CMC, a leading systems engineering and integration company and part of the Tata group. CMC brings extensive expertise in business solutions for sea- ports and will provide a solid SAP deployment framework, based on best practices, for Gulftainer’s core functions of engineering, asset management, human capital management, payroll, materials management and finance. R Ramanan, managing director and chief executive officer, CMC, said: “CMC feels proud and privileged to be selected by Gulftainer as the preferred IT partner for a state of the art ERP Implementation in partnership with SAP. “CMC’s domain knowledge, technology expertise and thought leadership in Transportation, Ports and Shipping management and SAP implementations worldwide will be leveraged in this prestigious project to the benefit of Gulftainer and their customers.” With a global total throughput of over six million TEUs in ports in the UAE, Saudi Arabia, Lebanon, Iraq, Brazil and the US, Gulftainer aims to become one the world’s top six container terminal operators by 2020. March 2015 | NAFL News 19
  • 20. C onstruction of a new agricultural bulk handling terminal at Oman’s Sohar Port is expected to also have a positive impact on the port’s petrochemical industries and downstream plastics manufacturers once work is completed. Work is expected to start on the US$170 million agricultural terminal in March and once operational, the terminal will handle 700,000 tonnes of grain and 1.5 million tonnes of raw sugar imports annually. Port executive commercial manager Edwin Lammers said this will place a demand on the packaging industry, which is already starting to show a keen interest in developing facilities on site. “Our aim is to attract new investment in food and food processing industries and create a Work to start on new US$170 million Sohar Port terminal A bu Dhabi’s Khalifa Port, built on a man- made island, posted 26per cent year-on- year growth in container volumes after it attracted more shipping lines, its operator said on Sunday. Khalifa port handled 1.13 million TEUs (twenty- foot equivalent unit containers) in 2014, representing growth of 26per cent, Abu Dhabi Terminals (ADT) said in a statement. The new Khalifa port began operations in late 2012 to take over container traffic from the existing Mina Zayed Port. ADT is jointly owned by Abu Dhabi Ports, Mubadala and Mubadala Infrastructure Partners. Four new shipping lines began services to Khalifa Port in 2014, taking the total to 20 lines serving 52 destinations. “2014 has been the busiest year at Khalifa Port Container Terminal and the fifth straight year that our compound year-on-year growth has risen more than 20per cent,” said Martijn van de Linde, CEO of ADT. Khalifa Port’s container terminal currently has an annual capacity of 2.5 million TEUs. This can be raised to 5 million TEUs, depending on demand over the next few years. Abu Dhabi has said its long-term goal is to increase it to 15 million by 2030, depending on demand. Khalifa Port 2014 container volumes grow 26per cent. cluster than can feed the region. Grain silos and a sugar refinery are already in the pipeline, and as this sector grows, the opportunities for packaging companies to serve multinational businesses will grow,” he commented. “We are pleased to see the response that we have had to the news that more than 1.5 million tonnes of environmentally-friendly packaging materials will soon be produced at SOHAR, led by Oman International Petrochemical Industry Company. This will centre on production of PET typically used in the manufacturing of single-serve beverage and soft drink bottles,” he added. In addition, the Liwa Plastics Project will provide polyethylene and polypropylene to packaging companies interested in setting up operations at SOHAR. This US$3.6 billionsteamcrackerprojectisbeing developed at SOHAR by Oman Oil Refineries & Petroleum Industries and will be integrated with the existing refinery, aromatics plant, and polypropylene plant. But packaging is not the only option, according to Lammers: “The link between food and plastics is clear. The global packaging industry will generate US$975 billion in sales by 2018, and 60per cent of that will be created in the food industry. “Thirty percent of packaging is made from plastics, and 90per cent of the region’s foodstuffs are imported. Much of this is pre- packaged elsewhere at a higher cost and our aim is to leverage our low-cost energy resources to reduce that cost. “However, packaging is not the only option available to potential investors. High density polyethylene and PET can be extruded for use in large-scale water and other types of piping, for example. This bodes well for the region’s construction industry, though we do not envision SOHAR being able to supply this industry just yet. Nevertheless, all of the plastics that will be produced at the port remain extremely versatile.” Ports & Shipping 20 NAFL News | March 2015
  • 21. Emirates forecasts 10 per cent cargo volume growth E mirates SkyCargo, the largest international cargo operator by volume, sees a double digit increase in cargo over the next financial year starting April 1, an executive said in Dubai on Monday. Henrik Ambak, senior vice- president – cargo operations worldwide, told reporters at the World Aviation Safety summit, a 10per cent volume increase is expected, partially driven by “sharp growth in North America.” The US economy has rebounded over the past 12 months following the Federal Reserves quantitative easing measures. In early February, the purchasing managers’ index, which measures manufacturing productivity, was at 53.70 up 11.41 per cent from a year ago, according to data from the trade group of purchasing managers. Any number above 50 reflects economic expansion. In the 2013/2014 financial year, SkyCargo carried 2.3 million tonnes of cargo, up 8per cent, which contributed Dh11.3 billion (US$3.1 billion) to Emirates Group revenue. Cargo traffic between Asia, the Indian Subcontinent and Europe, a traditional market for Emirates, continues to be “very strong” for SkyCargo, Ambak said. SkyCargo is shipping everything from pharmaceuticals from India, Switzerland, Germany and Scandinavian countries to fresh salmon from Norway to North Asia. The cool chain, a cold area on the plane used to transport pharmaceuticals, food stuffs and flowers, is SkyCargo’s “deepest growth” area, Ambak said, although electronics and clothing are larger in terms of sheer volumes. As part of this cool chain, SkyCargo is flying fresh flowers from Nairobi, Kenya to Amsterdam, Holland, which is then distributed throughout Europe. Henrik said SkyCargo will operate from “a couple” of new destinations this year. “North America and Africa are obviously core markets for us in development sense,” he said, adding that it is possible that there could be new freighter services to the US this year. S k y C a r g o ’ s operations were split last year between Dubai International and the Emirates secondary airport and future hub, Al Maktoum International at DWC. SkyCargo operates all of its dedicated freighter services out of DWC while two thirds of all cargo is transported on passenger planes arriving and departing from Dubai International. There are 47 trucks transporting cargo between the two airports with 80 per cent of all cargo carried by SkyCargo destined for markets outside of Dubai. SkyCargo will take delivery of its 15th freighter in August, Ambak said. Airlines & Airports Abu Dhabi Airports sigs Dhs 458 million contract with Smiths Detection S miths Detection, a global leader in providing government regulated systems to detect CBRNE, has won a contract worth $125 million to provide a comprehensive range of advanced detection equipment for Abu Dhabi Airport’s new terminal. In one of its biggest single airport orders, Smiths Detection will equip the terminal’s entire hold baggage and passenger screening checkpoints with a range of systems to help increase the airport’s annual capacity towards 40 million passengers. The so-called Midfield Terminal Building Project is due to be completed in 2017. The hold baggage systems include the HI-SCAN 10080 XCT, a next generation high speed explosives detection system combining X-ray and Computed Tomography technologies. Forcarry-onbaggage screening, Smiths Detection will deploy its aTiX (Advanced Threat Inspection X-Ray) systems, supported by trace detection sensors, bottle liquid scanners and radiation detectors. The terminal will also install 3D workstations for outbound equipment screening by the Police and 2D workstations for the inbound screening by Customs. Smiths Detection President Richard Ingram said: “This contract win highlights our success in supplying advanced, integrated security solutions that meet the operational needs of our customers while delivering long-term value. We look forward to consolidating our already close partnership with such an important and rapidly expanding hub airport. “The Midfield Terminal Building will soon become the primary gateway for passengers travelling through Abu Dhabi. We are committed to helping Abu Dhabi Airports Company achieve their strategic objectives that align with the UAE Capital’s Economic Vision 2030.” March 2015 | NAFL News 21

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