YOUNG professionals in the supply-chain and logistics sector have been challenged to devise ways on how to strengthen Dubai as a hub for the Middle East, through the creation of the best trading and distribution environment for the emirate.

“We need studies on this,” said Michael Canon, chief commercial officer of the Dubai World Central (DWC), talking to members of the Supply Chain and Logistics Group (SCLG) in a networking session. He urged them to produce research papers that could even help them get through graduate school.

He stressed the importance of a collaborative effort between the police, customs, municipality and other offices for the easy movement of goods and services to and from Dubai. “We have to make the eco-geographic road wider,” he said.

Already, the DWC is working with Dubai Customs and the police on how to bring in goods faster and more efficiently. It is also talking with the Dubai Department of Economic Development to set up a logistics council that would oversee matters pertaining to the industry.

DWC, the brand name of Dubai Aviation City Corporation (DACC), is set to be the aviation and logistics hub for Dubai and the wider region that includes the Middle East, the Indian Sub-continent, Africa and the former Soviet republics now known as the Commonwealth of Independent States (CIS).

With this region’s two billion consumers, it is imperative for Dubai to integrate its logistics industry into a single platform, said Nermeen Mahmoud, business development manager of the Dubai Logistics City (DLC), one of DWC’s six specialised clustered zones.

She said that DLC is a global supply-chain hub where companies can reduce transport costs, reroute shipments after dispatch and speed up orders between Asia and Europe. It can also merge shipments from different continents, and connect remote markets with Europe and Asia.

The $33-billion DWC is an aviation-themed, multi-phase urban land development spread across 140 kilometres around the Al Maktoum International Airport, which is set to become the world’s largest airport upon completion by between 2015 and 2020.

SCLG hosts Iftar for members

DESPITE the financial crisis, the UAE is on track to achieve economic growth, according to high-level officials from some major companies during the Iftar Party organised and hosted by the Supply Chain and Logistics Group (SCLG) for its members.  

“This year’s Iftar get-together was nice and well-organised,” commented PN Pretish, manager for logistics and international consolidation services at the Modern Freight Company (MFC).  

The mood was upbeat at the party, held at the Atlantis Hotel on September 16, as everybody was seemed relax and enjoying the grandeur and cozy ambiance of the hotel’s Silk Ballroom.  

Senior professionals from leading organisations like Dubai Trade, Schaefer, Span, Al Futtaim, Kanoo, MFC, Itsalat, Godrej, 3M, Jacky’s, Agility, Workz and Dulsco, among others, were exchanging notes and discussing growth for the next quarter.  

The expansion of Jebel Ali Port, the launch of a new seaport in Abu Dhabi, a new airport in Dubai, the expansions of existing airports in Dubai and Abu Dhabi and numerous other initiatives and projects are all seen to contribute to economic growth.  

The UAE’s central location at the crossroads of Europe, Asia, Africa and the Middle East can take advantage of its strategic position. Dubai, the UAE’s traditional cosmopolitan trading hub, is transforming into a logistics hub as well.  

And this is being supported by the country’s improved, according to supply chain and logistics professionals.
 
The guests were at ease and ended the evening on a positive note wishing each other the very best for the last quarter of the year. 

HEXOMATRIXX is a supply chain and logistics service provider in the Middle East and Southeast Asia. An organisation with core skill bases in all areas of business and operations management, Hexomatrixx offers consulting and implementation services that facilitate improved business profitability and cash generation.

It has ventured with the Matrix Petro Chemicals & Lubricants, to assist companies in determining the best approach in deploying outsourcing of supply chain and logistics needs. This is aimed towards creating a faster and safer supply chain.

MORGAN International represents leading international institutions, and covers a wide range of programmes for designers in accounting, finance, logistics and human resources.

Established in Beirut in 1995, the company has since extended its presence to 27 major cities worldwide – stretching from India to Poland, and serving thousands of candidates per year in the following programmes: CPA, CFA, CMA, CIA, CTP, CSCP, PHR/SPHR, IFRS and Essential Skills. For more information, visit www.morganintl.com.


SIEMENS LLC, established in the UAE in 1999, is a regional company of Siemens AG, the global powerhouse in electronics and electrical engineering. The group operates in the industry, energy and health care sectors, and has around 430,000 employees worldwide working to develop and manufacture products, design and install complex systems and projects and create customised solutions.

For over 160 years, Siemens has stood for technological excellence, innovation, quality, reliability and internationality. For more information, please visit www.siemens.ae.

AMGEN, the world’s largest biotechnology company, is considering building a logistics centre at the Dubai Biotechnology and Research Park (DuBiotech) that would connect to its main platform in Europe and serve markets in the Middle East and Africa.

Its present facility at DuBiotech, a major life sciences hub, serves as the regional office for its operations in the Middle East, Africa and Turkey. The office provides various services, including marketing, medical, finance, supply chain and regulatory affairs.

“Our goal is to become the best human therapeutics company in this part of the world,” said Ashraf Allam, regional managing director of Amgen. “In an area of over half a billion people, there is immense potential for Amgen to serve a range of patients.”

Rolf Hoffman, senior vice-president for commercial operations at Amgen International, said the company is interested in clinical research, and in developing clinical trials in collaboration with DuBiotech and research organisations.

“We feel privileged that the development strategy of DuBiotech is facilitating Amgen’s regional expansion plans,” said Dr Marco Baccanti, executive director of DuBiotech. “The biotechnology cluster gains significance from the infrastructure point of view because of its laboratories, warehouses and offices.”

ALMARAI, the Gulf’s largest dairy firm based in Saudi Arabia, will raise its capital by 5.5%, or $307.1 million from $291 million, as part of a cash-and-stock takeover bid for Hail Agricultural Development Company (HADCO).

“The shares from this capital increase, which amount to six million shares, will be exclusively for shareholders of HADCO, as part of the value of their shares,” the company said in a statement.

Almarai, which offered in July to takeover HADCO for $253 million, has been diversifying its business through acquisitions, and has set aside $1.6 billion for expansion outside the Gulf Arab region.

HADCO is the fourth-largest poultry producer in Saudi Arabia.

EMKE Group is set to invest $1.17 billion to increase its number of supermarkets in the Middle East to 100 over the next three years from 75, as it announced its entry into Egypt and India.

An operator of the biggest hypermarket chain in the region under the Lulu and Al Falah brands, Emke expects a turnover of $2.48 billion for 2009 from last year’s $2.1 billion across its network of hypermarkets in the region.

Yusuffali MA, managing director of Emke Group, said it will open a store in Egypt later this year, and a hypermarket by 2010. He added that work has started on the biggest shopping mall in Kochi, at India’s state of Kerala, and will open to the public in July 2011.

Emke, which controls 32.5% of the UAE’s retail market, will develop more malls across India gradually. Emke opened its 75th hypermarket in Al Ain early this month.

The group has a footprint in 15 countries in Asia and Africa, with interests in manufacturing, garments, trading and shipping.

DUBAI Gold and Commodities Exchange (DGCX) has forged a partnership with Germany-based Structured Solutions to launch a series of benchmark indices, which are valuable financial tools in identifying trends and assessing investment performance.

“Commodities have emerged as a crucial asset class and economic indicator during the downturn,” stressed Stefffen Scheuble, chief executive officer (CEO) of Structured Solutions. “Investors are not only increasing exposure to this asset class, but also using it to enhance fundamental research and analysis.”

Structured Solutions, an integrated service provider in the derivatives sector, will create new commodity indices based on DGCX commodity prices, and dedicated to the global investment banking and fund industry.

“We are pleased to partner with Structured Solutions for the development of a series of strategic initiatives and products, including new commodity indices to help manage fund portfolios,” said Malcolm Wall Morries, CEO of DGCX.

A fully automated, online commodities exchange, DGCX is the first international commodity derivatives marketplace between Europe and the Far East. It is an initiative of the Dubai Multi Commodities Centre, Financial Technologies, of India, and the Multi Commodity Exchange of India.

Scheuble remarked, “As DGCX is the first and largest derivatives exchange in the Middle East, its prices and data are invaluable in our development of new commodity index products.”

BOEING and Danish logistics company Damco have struck a deal to pursue the development of industrial and technological logistics tool aimed at improving global supply-chain management (SCM).

“We look forward to working with Damco and integrating their optimisation capabilities into our own experimentation environment,” said Torbjorn Sjogren, vice-president of Boeing International Support Systems.

US-based Boeing, which shipped over $350 million worth of aerospace goods and services last year, will incorporate Damco’s SCM expertise into a modeling and simulation tool to expand into commercial markets.

Called Joint Logistics Command and Control Environment, this state-of-the-art simulation tool developed by Boeing allows defence customers to experiment and evaluate supply chain tactics, processes and technologies to support complex defence missions.

“We will quickly seek out opportunities to deliver more effective outcomes within both defence and commercial supply chains, and we see a complementary of strengths between Boeing and Damco,” Sjogren said.

Damco’s chief commercial officer, Martin Thaysen, said the partnership has created a “powerful platform” for the development of optimal supply-chain solutions for customers.

“Damco is in the business of moving products, reducing costs and improving service levels,” he said. “Working with Boeing’s supply chain experience and technology would allow us to develop new ways of reducing cost and freeing up cash for our customers – which is particularly important in these economically challenging times.”

Damco is the new, combined brand of AP Moller-Maersk Group’s logistics operations, previously known separately as Maersk Logistics and Damco. Its 2008 net turnover reached $2.8 billion.

THE Asia-Pacific region will be a growth leader in the long-term global air cargo market, with a requirement for 8,960 new commercial jets worth $1.1 trillion over the next two decades.

This according to Boeing, which stressed that the routes within China, within Asia and those connecting Asia to other parts of the world are outpacing the projected 20-year worldwide average annual growth rate of 5.4%.

Contained in a new Asia-Pacific aviation market forecast published in Hong Kong by Boeing, a US aircraft manufacturer, the research note suggests that the region will need 8,960 new commercial jets valued at $1.1 trillion.

Strong domestic growth in China, India and other emerging Asian countries could contribute to high demand for single-aisle airplanes, which could make up more than half, or 5,600, of the total aircraft deliveries over the 20-year forecast period.

With just 330 deliveries, the percentage of the fleet’s large category would drop to four per cent from 10% over two decades, as airlines preferred mid-size twins and larger single-aisle jets. About 2,590 twin-aisle airplanes and 440 jets would be delivered to airlines in the Asia-Pacific region, whose fleet would triple to around 11,170 airplanes from 3,910.

“Twenty years from now, more than 40% of the world's airline traffic will begin, end or take place within the Asia-Pacific region,” said Randy Tinseth, vice-president for marketing of Boeing Commercial Airplanes.

The Asia-Pacific air travel could grow by 41% of the world market in 2028 from the current 32%. Accounting for more than 8,300 flights and 1.2 million travellers daily, the region will be the world’s largest air travel market in less than 10 years.

“Despite an unprecedented contraction during 2008 and 2009, we remain confident in the strength of the global air cargo market over the long haul,” said Jim Edgar, regional director, Cargo Marketing, at Boeing Commercial Airplanes.

Boeing said Asian carriers might want to add 750 freighters to the region’s fleet, in order to accommodate growth and airplane requirement – or 27% of the global requirement – which is second only to North America, a more mature but slower growing market.

SEEING demolition as the best option in a weak market, owners are sending their single-hulled supertankers to scrap yards, according to EA Gibson Shipbrokers in a report released in August.

This is seen to gain support for shipping rates, as three very large crude carriers (VLCC) have been sent for demolition since January, matching the total for the whole of 2008.

“Any significant increase in tanker scrapping could put the brakes on asset values from dropping still further, and may have a positive effect on market rates,” Gibson said.

Rates for the benchmark Saudi Arabia-Japan supertanker route had fallen 42% in the 12 months to August, with income after fuel costs from the voyage dropping 14% to $11,660 a day on August 23. The amount, based on the Baltic Exchange, is less than what owners need from the vessels to pay crew, insurance, repairs and other running costs.

Single hulls will be phased out by next year, as 150 countries endorsed oil tankers having two layers of steel as a better way to prevent oil spills. The scrapping of single-hulled supertankers could lessen the increase in the size of the world fleet.

According to London-based Drewry Shipping Consultants, 225 vessels, including 37 supertankers, will enter the fleet this year, raising capacity by 7.8%. At least 98 single-hull supertankers are on the water now.

THE MOOD was upbeat as Seatrade Europe closed its doors for another two years, following two and a half days of networking among participants and showcasing of new products and services in the shipping sector. More than 3,000 participants took part in the conference, exhibition and social programme while over 60 speakers discussed a broad range of topics from pricing strategies to shoreside electricity (cold ironing) and from hospitality to itineraries. Travel agents were also given an opportunity to meet with, and question, officials of some of the leading cruise lines.

Early figures show that 75% of the trade visitors had direct influence on procurement decisions – which was good news for the 250 suppliers from 50 countries which showcased their products and services on the exhibition floor.

One of the first-time exhibitors at Seatrade Europe was New York Cruise. The company’s director of cruise operations, Thomas Spina, already has plans to return. “We were looking for contact with the European shipping companies, and we have found it,” he says. “More and more European providers are calling to New York Cruise. There is still a lot of potential here. We will definitely return to Seatrade Europe, in 2011.”

New products included the iPort, an interactive touch-screen monitor for passengers which made its debut on the Atlantic Alliance stand. “The great interest in the iPort, including from ports which are not part of the Atlantic Alliance, surprised us and made Seatrade Europe a total success for us,” summed up Dirk Moldenhauer, managing director of Atlantic Alliance. The iPort will be installed at all 17 Atlantic Alliance member ports.

On top of the formalities, the event held on September 15-17 included various receptions, parties and networking opportunities. The 2009 Seatrade Insider Cruise Awards, sponsored by Fidelio Cruise, was presented at the Schmidts Tivoli Theatre. David Dingle, Carvical UK chief executive officer and chairman of the European Cruise Council, was named Seatrade European Cruise Personality of the Year. Press conferences included the announcement of a new cruise terminal in Dubai, by Hamad bin Mejren, director of the Dubai Cruise Terminal.

Bernd Aufderheide, chairman of Hamburg Messe und Congress Gmb, remarks, “This year was the first time that the congress trade fair took place at the Hamburg Messe Fairground. With the new, modern congress and conference facilities, we have created a perfect setting for Seatrade Europe.” Christopher Hayman, chairman of Seatrade, adds: “Our co-operation with Hamburg Messe has proven itself [successful]. I look forward to our next collaboration in 2011.”

The next Seatrade Europe convention will take place at Hamburg Messe Fairground, on September 27-29, 2011.

DUBAI-BASED pharmacy retailer Planet Pharmacy has appointed Hasan Ukra group professional pharmacy services manager, following the company’s rapid expansion and part of its growth strategy.

Ukra said the company, whose Health First stores are to be launched later this year, aims to lift the standards of pharmacies across the Middle East region.

“I am looking forward to playing a valuable role in this vision, and delivering on the needs and expectations of the Middle East consumers,” he said.

Ukra, who speaks Arabic and holds a master’s degree in Pharmacy from the School of Pharmacy at the University of London, is responsible for attracting, developing and retaining professional pharmacists into and
within the company.

He joins Planet Pharmacy after four years with Boots in the UK where he ran a range of stores, including the flagship outlet on Oxford Street, in central London. He is a member of the Royal Pharmaceutical Society
of Great Britain.

“I am delighted to be joining Planet Pharmacy at such an important stage in its
short history, and I look forward to bringing my experience—and hopefully adding value—to this exciting market,” he said.

Formed in December 2007 with a capital of $244.6 million (Dh900m), Planet Pharmacy is a joint venture between UAE’s Gulf Pharmaceutical Industries (Julphar) and the private equity division of Kuwait-based Global Investment House.

Captain Olson moves to GAC Brazil

GAC, the global shipping, logistics and marine services company, has appointed Captain Robert Olson as marine representative to GAC Logistica do Brasil, from being the general manager of GAC Shipping (USA), in Philadelphia.

Based in Rio de Janeiro, Olson will be responsible for supporting and driving the growth of GAC’s shipping, marine and oil and gas services in Brazil.

GAC’s vice-president for the Americas, Lars Heisselberg, said the appointment is part of the group’s strategy to strengthen its presence in the biggest economy in South America.

“He has great understanding and experience of the maritime industry, and I am confident that his competence and expertise will prove extremely valuable to the growing needs of our clients in the region,” he said of Olson.

Olson, who was in charge of GAC’s nationwide port agency operations in North America, has been exposed to various aspects of maritime operations related to ship supplies, car carrier and oil and gas sector.

BA World Cargo enhances ‘Constant Climate’

BRITISH Airways World Cargo has made investments in a new SMS customer update service and a dedicated product-care team, to broaden the scope of its temperature-controlled product for pharmaceuticals.

Called Constant Climate, the expanded product also covers passive temperature-controlled packages and shipments. Launched globally across all Constant Climate stations in early September, the new elements are being implemented after consultations with pharmaceutical forwarders.

“These enhancements come as a result of thorough development work involving our customers, and we are confident that the new service will deliver significant benefits to pharmaceutical logistics suppliers,” said Stuart Forsyth, global product manager of BA World Cargo.

The advanced SMS offering updates customers by text messages or email regarding their shipment. Information on the temperature inside the unit and the condition of the battery is included in the update for Constant Climate Active shipments using Envirotainers.

A 10-man specialist team and 500 personnel across the network ensure quality assurance and operational procedures are in place.

Forsyth remarked, “The investment in training and improved standard operating procedures has been as important as the use of technology, and the introduction of our care team.”