LOGISTICS and supply-chain management (SCM) experts have urged the Supply Chain and Logistics Group (SCLG) to make its presence more prominent by publishing research notes on the industry and making representations with government and academe to develop the industry further.

These studies, or white papers, would help professionals keep themselves abreast of the latest opportunities and challenges besetting the industry, said Michael Proffitt, a senior adviser to Dubai Logistics City (DLC). Also, government ought to know what the industry really needs.

“Like, in Singapore… it doesn’t close its customs clearance services on weekends,” he stressed during this month’s SCLG Networking Leadership Forum. He was emphasising the need for more business-friendly government policies, especially on the movement of goods and services.

Industry leaders would want to see from 2010 a UAE-wide policy development on the logistics and SCM sector, better connectivity between SCLG and government bodies, improved tie-ups with educational institutes, more young SCM professionals and round-the-clock customs and immigration services.

Shashi Shekhar, of the Emirates SkyCargo and part of the SCLG Global Thought and Industry Leaders, said these proposals should be put together, so that the message could be sent to government through the proper channels.

Nowadays, industry players and professionals want the SCLG to influence government policies on the logistics and SCM sector not only on the local but also the regional level.

“Nobody can talk about the logistics industry with government better than the SCLG,” said Dr Satish Mapara, of the GlobeApex Management Consultants and member of the SCLG Board of Directors.

The way forward for the industry, said Mohsen Al Awadhi, general manager of DLC, is to collaborate and not compete – having projects complementing each other – to have ease of cross-border travels and better management and legislation.

Usha Kaul Saraf, of the University of Dubai and a member of the SCLG Regional Development Committee, remarked, “Let us sort of reinvent the wheel.” She said that SCLG has to help mould some students into becoming supply-chain professionals by conducting lectures and training in schools.

She added that the SCLG could have regular training sessions linked to SCM classes in universities. The initiative can be funded through support from corporate members, which could set up supply-chain research centres in colleges and universities.

Promoting SCM awareness in the academic community could lead to rigorous research on the sector, said Dr Cedwyn Fernandes, of the University of Middlesex and a member of the SCLG Consultative Committee.

Naveen Arun, a member of the SCLG Executive Committee, stressed the important role that young professionals – aged 35 and below – play in the logistics and SCM sector. He wants the SCLG-Young Professionals Global to boost its recruitment in other countries, especially India.

The world’s second-most populous country has a logistics industry valued at $125 billion with a compound annual growth rate of 16%. India has 12 major ports, 187 minor ports, 7,517 kilometres of coastline, four metro airports and 35 non-metro airports.

A EUROPEAN expert on logistics and supply-chain management (SCM) has stressed the need for fact-based, data-driven approach to logistics design and inventory solution design, among others, to be more competitive in both domestic and international markets.

“Logistics and SCM have come of age due to the development of information and communications technologies (ICTs), and globalisation,” explained Patrick Daly, managing director of Dublin-based Alba Logistics, speaking to industry professionals during a workshop in Dubai.

At the two-day “Fundamentals of 21st Century Logistics and Supply Chain Management”, Daly emphasised that businesses now acknowledge the “strategic importance” of logistics and SCM capabilities in their operations and growth and expansion plans.

“Logistics and SCM cut across organisational boundaries and professional disciplines,” he said, stressing that logistics activities link production, marketing and customer service, and amount to billions of dollars in expenditure.

Citing data from Michigan State University, Daly said logistics expenditures represent 20% of world GDP, or gross domestic product, amounting to more than $3.5 trillion per annum while in the US, logistics spending makes up 10% of GDP and represents $1.4 trillion. He added that most US corporations spend between eight per cent and 15% of total sales revenue on logistics activities, as indicated by the Herb, Davis and Associates.

Composed of eight sessions, divided into four for each day of the two-day event, the workshop highlighted the benefits of a key systems approach to logistics and SCM operation, or how the components, sub-systems and systems changes interconnect with each other.

This approach, Daly said, helps industry professionals and companies avoid “unintended consequencies”, such as the effects of the risky sub-prime mortgage industry in the US. It also benefits customers by enabling them to hatch logistics schedules more effectively and communicate with suppliers, customers and partners efficiently.

Organised by Alba Consulting Group and supported by the Supply Chain and Logistics Group, the workshop made use of cases studies done on logistics companies, colourful slides and presentations, and Daly’s valuable knowledge gained out of his 20-year industry experience as a professional and consultant working across Europe, Asia and North America.

NEOPHARMA, the Abu Dhabi-based pharmaceuticals manufacturer, has broken ground for a $68-million expansion initiative to undertake biotechnology- and nanotechnology-based research and manufacturing operation.

This develops after the company received approval to manufacture BR Flu-Oseltamivir, a drug intended to cure H1N1 infections. The product is the result of Neopharma’s joint venture with Hetero Drugs.

Dr BR Shetty, managing director and CEO of Neopharma, told a local paper that the joint venture has the capability to manufacture 20 million capsules. “We have already started manufacturing this,” he said.

The 14-month contract to build the new plant has been awarded to India’s Larsen & Toubro, and which will be partly financed by banks. The Bank of Baroda will finance about $27 million, Shetty said.

Shaikh Nahyan Bin Mub-arak Al Nahyan, UAE Minister of Higher Education and Scientific Research and Chairman of Neopharma, joined officials in the ground-breaking ceremony on October 3.

Neopharma’s new plants will facilitate the manufacture of nutraceuticals, injectable preparations, topical applications, ophthalmic products and aerosols. Manufacturing lines are also being set up for an important group of antibiotic drugs called Cephalosporins.

The Gulf’s healthcare market is seen to hit between $47 billion and $55 billion by 2020 from $18 billion in 2008, which had 46 million treatments, according to a report by Alpen Capital.

The UAE and Qatar have the most ambitious healthcare projects in terms of the number of beds per capita, and are banking on medical tourism from within and outside the Gulf to advance its medical industry.

REGIONAL and international transportation professionals will gather in Dubai next month to discuss road safety measures and the financing structures for rail and road projects in the Gulf, among other issues.

These professionals will come from the different sectors of the transportation industry, including road and rail operators, transport authorities and government agencies, civil engineering firms, contractors and consultants.

Slated on December 6-8 at the Dubai International Convention Centre, the Gulf Traffic exhibition and conference puts emphasis on the Middle East’s heavy investments in transport infrastructure.

“This places the region in a unique position to address its transport challenges urgently,” said the Gulf Traffic on its website. “Infrastructure dependent on road and rail will face a hindrance in its utmost performance if solutions are not implemented.”

Faced with expanding cities and growing populations, governments in the region have committed $147 billion for ongoing and planned transport projects over the short and medium terms.

The Dubai government, for instance, has initiated road and transport projects to the tune of $4 billion while Abu Dhabi sets out plans for a railway project and a comprehensive public transport network.

In Saudi Arabia, there is an initial investment of $5.6 billion for the construction of bridges and railway networks while Qatar has committed $3.4 billion for road projects over the next seven years. Bahrain has invested $1.8 billion in a causeway project to link it with Qatar.

The six-member Gulf Co-operation Council even has plans for a pan-Gulf railway, triggered by the need to move people and goods more efficiently as the oil-producing Gulf region has become a global hub for the supply-chain and logistics industry.

MOMENTUM Logistics will be providing logistics services to the United Arab Shipping Company (UASC), as part of the latter’s expansion in the Middle East and in anticipation of the arrival of some of the world’s largest container ships to the region by 2011.

“We very much value the long term relationship we have with UASC, and we look forward to exploit this additional venue of collaboration,” said Matthew Derrick, general manager of Momentum. “UASC is a major and active user of our Khorfakkan Terminal where, I am pleased to say, we have regularly set records of performance and productivity with their ships.”

The deal, which the parties signed in early October, calls for Momentum to provide UASC with dedicated warehouse space and other logistics services, in addition to its regular business at the latter’s container repair and washing facilities.

A major player in container shipping in the Middle East and adjacent markets, UASC has a network that covers over 200 ports and destinations worldwide, offering services in containerised and conventional cargo transportation, temperature-controlled cargo and value-added services to a diversified clientele.

Keith Nuttal, group commercial manager of Gulftainer Company, said the transportation division of Momentum has been setting the pace for cost-effective and safe inland transport and distribution in the UAE for almost 30 years, previously under the Gulftainer/Speedtrux banner.

Fast Rent A Car investing $12m to double car fleet

FAST Rent A Car is investing $12.3 million this year to more than double the number of vehicles in its specialised bus leasing division, citing growing demand in the UAE.

It just added 33 buses to its 120-strong fleet, and will invest for 100 more buses. It said it has witnessed a “steady rise” in business for the past 12 months, despite the economic meltdown.

“This investment… is indicative of the confidence and trust that our customers are continuing to place in our products and services… .” said Ahmed Abood, CEO of Fast Rent A Car. “By more than doubling the size of our fleet, we are also better placed to provide a full range of the latest, flexible transportation options to potential clients.”

Aramex’s Q3 net profit rises 23%

ARAMEX has announced a net profit of $11.4 million for the three months to September, or an increase of 23% from a year earlier. Revenues for the third quarter dropped 11% to $148.6 million.

The Middle East’s global provider of logistics solutions has announced growth despite the economic downturn, reflecting the company’s innovative business strategy.

“We continue to review expansion opportunities in underserved markets, especially in Africa and Central Asia,” said Fadi Ghandour, founder and CEO of Aramex. “As Aramex adjusts its long-term growth strategy in line with evolving market dynamics, we are also determined to upgrade and expand our existing logistics infrastructure in core markets.”

THE INTERNATIONAL Air Transport Association (IATA) urged the air transport industry in the Middle East and North Africa (MENA) to focus on key challenges of growth like safety, cost control, liberalisation and the environment.

“The Middle East is an oasis of some good news for this industry,” said Giovanni Bisignani, director-generaland CEO of IATA. “This is the only region that is growing. Over the first eight months of the year passenger demand expanded by eight per cent, outstripped by a capacity increase of 13%. But growth has not yet translated into profitability. Growth without profit is not sustainable.”

In a keynote address to the region’s leaders at the 42nd Annual General Meeting of the Arab Air Carriers Organisation, in Jeddah, he stressed that safety is a constant challenge to the region, whose accident rate is six times worse than the global average between January and September.

He also noted that Amman must not ignore the principle of user consultation as stipulated by the International Civil Aviation Organisation (ICAO). He was referring to the build-operate-transfer agreement which Jordan had signed with AIG to build a new terminal at the Queen Alia International Airport, in Amman.

“Commercialising some airports is changing the nature of the partnership,” he emphasised. “AIG, the concessionaire, can increase charges without a requirement to consult the airlines, and 54% of the gross revenue goes to the government. The regulator has become the business partner of the concessionaire.”

Stressing that the growth of aviation in a county is largely dependent on the success of the global sector, Bisignani also said that IATA will help governments develop “effective tools” to generate sustainable profits.

“The flag on the tail cannot secure the future of this industry,” he said. “Aviation is not a diplomatic activity. We are businesses with bottom lines to protect.”

Among the biggest challenges to growth is the environment, as the industry’s four-pillar strategy on climate change has saved about 70 million tonnes of carbon emissions. IATA’s work in the MENA region helped six airlines become fuel-efficient, saving $80 million on fuel costs, optimised seven routes and implemented performance-based navigation at seven airports.

“Now, the region must think beyond national borders,” he said. “Why not have a United Arabian Sky with seamless air traffic management and common technology standards? The time to invest is now, before the problems of growth become acute.”

DNATA Cargo, the airfreight company under Emirates Group, transported 51 saloon cars to the Congolese capital of Kinshasa in September, witnessing increased traffic to the African markets.

With a 48-hour deadline set by the agent, the shipment included 16 Infinity G35 models and 35 Nissan Altima cars, with a total weight of 17 tonnes. “Time is always a critical element,” said Stuart Hayman, vice-president of Dnata Cargo operations.

The company utilises Emirates Airline’s network that currently serves 16 passenger and cargo destinations in Africa. The African market is growing, he stressed, getting 30-40% of total goods that transit through Dubai. This shows in the number of direct flights to Africa, which is very time sensitive due to its rapidly growing market.

Dnata Cargo also has a lot of shipments containing consumer products to Iraq and Afghanistan.

GAC can now rely on the Swiss Post Solutions to bring its core document services and solutions to the Middle East, following the signing of a “strategic partnership” known as GAC Office Solutions.

“The strategic tie-up with a world leading supplier like Swiss Post enables us to offer our Gulf-based maritime and logistics clientele value-added office solutions that can help them trim cost, enhance productivity and improve information management,” said Christer Sjödoff, group vice-president of GAC Solutions.

Japan’s biggest shipping and logistics group NYK, meanwhile, has chosen GAC to help it build a strong market presence in Nigeria. Senior officials of both companies had met with government representatives and customers in Lagos to launch the twice-monthly direct liner service, one of the very few from Asia.

NYK has been a GAC customer in the Middle East for more than 50 years.This latest development sees Richard Mallen, formerly of GAC’s Global Strategic Purchasing Unit in Thailand, appointed general manager in Lagos for Liner Services responsible for all GAC Nigeria’s liner business.

“There are plenty of opportunities and plenty of challenges for NYK’s venture in West Africa,” Mallen said. “Our task, quite simply, is to give them the best possible service no matter the conditions. We have to ensure NYK vessels get to their berth quickly, are efficiently discharged and sent on their way. Then we must handle all the complex documentation that is needed for their containers to be released to the local importers.”

The GAC-Swiss Post partnership combines GAC’s commercial skills, customer knowledge and geographical reach with the technological and operational excellence in document outsourcing of Swiss Post.

These include mailroom services, scanning and processing of documents, data capture, records and archive management, print and reprographics, third-party supplier management and the recently announced products, Swiss Post Box and IncaMail.

“Clients will be able to manage their back office functions and customer interaction more effectively, creating clear business advantages,” said GAC in a statement.

It added that GAC was attracted to Swiss Post by its reputation as a leading provider of document solutions to major companies, including Zurich Financial Services, Siemens and Microsoft.

“We also foresee further synergy whereby GAC Office Solution’s value proposition can be expanded with complementary services from our existing logistics portfolio, such as removals, freight forwarding, records retention and storage services to offer clients end-to-end solutions,” Sjödoff said.

Markus J Becker, CEO of Swiss Post Document Solutions, said the alliance resulted from months of hard work by the two parties. “We aim to become the leading provider of outsourced mailroom and document processing solutions in the Middle East,” he added.

He stressed that corporations with multiple sites and floors in offices and buildings will benefit from the information flows and controls, which ensure timely delivery and processing of documents and goods to individuals within the workplace.

Weathered storm

International reserves buildup to maintain government spending

A year after the economic crash, Dr Omar bin Sulaiman, governor of the Dubai International Financial Centre (DIFC) and vice-chairman of the UAE Central Bank, believes the region’s banking sector has weathered the worst of the crisis. Markets, governments, regulators and financial institutions in the Middle East have responded professionally, he said in an opening keynote address during the recent “Banking Outlook Middle East 2009” conference in Dubai.

“The result has been improved policy-making and more powerful monetary policy tools,” he explained. “What’s more, we are now in a position to declare with some certainty that the region has passed through the worst of the crisis without experiencing any systemic risks. This is a great accomplishment and speaks well about the future of this region and this country.”

Among the factors cited for the sector’s strength are the increased presence of Islamic financial institutions in the region, whose prudent policies shielded them from toxic assets, a conventional banking culture with cautious lending practices and a low appetite for risky investments, and large current account surpluses and international reserves which cushioned the dual impact of the global recession and low energy prices.

The IMF Regional Outlook report presented during the conference by Masoud Ahmad, director of the Middle East and Central Asia Department at the International Monetary Fund, cite the Gulf governments’ and central banks’ proactive policies in supporting the banking sector through liquidity support programmes and direct capital injections. These moves were made possible due to the Gulf Arab states’ vast reserves.

Sulaiman cited a research done by the DIFC Authority’s Economic Unit saying the oil and gas reserves of the six members of the Gulf Co-operation Council are estimated at $18.3 trillion, assuming that oil price at $50 per barrel and gas price at $9 per million British thermal unit, or BTU. “To put that into perspective, that amount is larger than the 2008 GDP of the US,” he stressed. “Let me say that again, the value of oil and gas reserves of GCC countries is more than $18 trillion.”

This hydrocarbon wealth can secure the region’s long-term financial stability, finance its transformation into a diversified economy, and put its banking sector in a position to take advantage of growing geographical trends in international trade, specifically from west to east.

A traditional unit of energy, BTU is approximately the amount of energy needed to heat one pound of water one degree Fahrenheit.

By 2013, the IMF projects that GDP, in terms of purchasing power parity (a technique used when determining the relative values of two currencies), of emerging and developing countries will account for 50.6% of global GDP, eclipsing advanced countries for the first time since the 19th century. The Middle East saw the rise of Asia as a trading partner from 27.4% in 2000 to 31.2% in 2007 while trade with North America fell from 13.1% to 10.4%.

Accounting for one-third of global foreign direct investment (FDI), Asia-Pacific was the leading region for FDI in 2008 while Dubai unseated London as the No 1 city in world FDI, and surpassed the likes of Beijing and Shanghai.

Sulaiman believes that the new economic geography presents a “golden opportunity” for the financial institutions in the Middle East to link up with partners in China, India, Central Asia and other areas in financing. This move will fuel strong growth predicted for these regions over the coming years.

While there are many reasons to be optimistic about the state of the banking sector in the Middle East, he admits that there are challenges, too, foremost of which is the question of sufficient liquidity. In its separate report, the IMF echoed this observation as it urged governments to continue to support the financial system to make adequate liquidity available to the banks.

“Direct fund injections by the government and support from the Central Bank have helped to ease the liquidity in the UAE banking system to a great extent,” said Philippe Dauba-Pantanacce, senior economist at Standard Chartered Bank, Middle East and North Africa (MENA). “But even now, many UAE banks have loan to deposit ratios in excess of 100%. In the absence of deposit growth, only additional government deposits can fill this gap.”

The UAE has committed $32.67 billion in liquidity support to the banks and direct injections into the banking system, substantially improving the banks’ liquidity over the past few months. “The funding gap between loans and deposits which was $29.95 billion in the beginning of the year has narrowed to about $10.9 billion by the end of the first half,” said Shayne Nelson, CEO of SCB, MENA.

To help banks beef-up capital adequacy and improve consumer confidence, the Qatar Investment Authority committed to contribute as much as 20% to the capital of local banks, to protect them from the global credit crisis. The country’s sovereign wealth fund purchased a five per cent stake in Doha Bank early this year, and is poised to buy another five per cent stake before year’s end.

Saudi Arabia goes beyond its borders as it follows the footsteps of the US and Europe to contribute more to the IMF. The Arab world’s largest economy is negotiating to contribute reportedly about $10 billion, to bolster the IMF’s financial muscle in helping developing countries get around the economic crisis.

A CONSORTIUM composed of institutions from Qatar and Bahrain has acquired 100% of Qatar Engineering & Construction Company (QCon) from Qatar Shipping.

“We are proud to have formed a strategic alliance with three of the region’s leading financial institutions to acquire QCon… .” said Sheikh Ahmed bin Mohammed bin Jabor Al Thani, chairman of Qatar America Asia Consortium (QAAC).

QAAC, together with Bahrain-based Unicorn Investment Bank, Qatar First Investment Bank (QFIB) and The First Investor (TFI) formed a close partnership to structure the transaction according to Shariah principles.

“We are delighted to have put together a strong consortium, and to have the opportunity to partner with leading Qatari institutions to acquire QCon,” said Majid Al Sayed Bader Al Refai, managing director and CEO of Unicorn. This marks Unicorn’s third investment in the regional energy sector in the recent months.

QFIB and TFI are the largest shareholders in the consortium, each acquiring a 41% stake in QCon, one of Qatar’s leading contracting firms in industrial engineering and construction.

“This is an important investment for QFIB in the energy sector, and we look forward to working with our partners to support QCon’s expansion plans, both in Qatar and within the broader MENA [Middle East and North Africa] region,” said Abdullah bin Fahad bin Ghorab Al Marri, chairman of QFIB.

Established in 1975, QCon specialises in the oil and gas, petrochemical, power and other industrial infrastructure sectors. It had been wholly owned by Qatar Shipping since 2006.

Anderson joins BAE Systems

PAUL Anderson has been appointed non-executive director of the board at BAE Systems, which is engaged in the development, delivery and support of advanced defence, security and aerospace systems, as part of the company’s growth plan.

With his extensive background in mergers and acquisitions within the natural resources and energy industry, Anderson is seen to be able to strengthen the company with his international and strategic expertise in the field.

“Paul will be an excellent addition to the BAE Systems Board, bringing a wealth of international experience,” said the company’s chairman, Dick Oliver.

He also said that Anderson has an “exceptional track record” in leadership, based on his performance at his former employers.

Anderson retired as chairman of Spectra Energy, in May, and is a former CEO of BHP Billiton and ex-chairman of Duke Energy. He was also non-executive director of Qantas Airways.

He holds a bachelor’s degree in Mechanical Engineering from the University of Washington and a master’s degree in Business Administration from Stanford University.

DLA Piper, an international law firm with offices in Dubai taking care of its Middle East operations, has clinched the ‘Best Environmental Excellence Award’ at the Sixth CSR Summit Awards.

The award, which it won together with Tecom Investments, recognises the law firm’s initiative to integrate eco-friendly practices in its operations across the Middle East.

This initiative includes programmes designed to reduce business travel and offset emissions, purchase items manufactured from sustainable sources and recycle paper, plastic, glass and print cartridges.

“It is a tremendous honour to have won this award – and one which we are all hugely proud of,” said Tony Holland, the firm’s managing partner in Dubai. “We have put in an enormous effort to create a CSR programme, which is unparalleled in the region. A crucial part of our business model is to play influential role in the communities which we are a part of.”

DLA Piper is the first law firm to achieve ISO 14001 certification across all the continents in which it operates. This means the law firm is committed to standards that significantly reduce its impact on the environment.

“I am delighted that DLA Piper Middle East has won this award because we have truly integrated sound environmental practices into our development strategy, and these practices have become part and parcel of how we run our business,” said Wafa Tarnowska, regional manager of CSR (corporate social responsibility) and Arab Initiatives for the Middle East at DLA Piper.

This year’s CSR Summit Awards honoured companies for their outstanding, innovative and world-class products, services, projects and programmes implemented throughout 2008 and 2009.
The award-giving body cited DLA Piper’s leadership, sincerity and commitment in incorporating ethical values into its operations and complying with the legal requirements and respecting individuals, communities and the environment in the way it does business.

Also recently, DLA Piper won the ‘Sustainable Initiative Award’ from the Facilities Management Middle East, which cited its efforts to reduce its carbon footprint across the region.

DHL invests $32m in Melbourne airfreight facility

INTERNATIONAL trade in the Australian states of Victoria and Tasmania is expected to get a boost from the $32-million DHL airfreight facility at Melbourne airport, said DHL Global Forwarding South Asia Pacific.

“The new facility is the perfect environment for our people and delivers exceptional service to our customers,” Amadou Diallo, the company’s CEO. “At the same time, our investment down under supports industries and distributors in Australia and throughout the rest of the world.”

Covering almost 50,000 square metres, or more than twice the size of the Melbourne Cricket Ground, the new facility includes two coolrooms designed to handle the southern states’ vibrant life science and perishables exports.

Tony Boll, CEO of DHL Global Forwarding, South Pacific, said Victoria has seen an increase in pharmaceutical and perishable exports, even as overall Australian exports declined in the last quarter.

“Tuna and salmon to Japan is one of DHL’s largest perishable airfreight products,” he stressed. “We have also experienced significant growth in live abalone and fruit products to Asia and other perishable products to the Middle East.”

He said the new warehouse is also designed to support Australia’s developing pharmaceutical, vaccine and life science sectors in trading with international markets.

HK’s air cargo volumes stabilising

HONG Kong Air Cargo Terminals said its tonnage throughput has further stabilised with a total of 212,391 tonnes handled, registering a milder drop of 4.3% year-on-year. 

In a statement, it said tonnage performance in the third quarter also showed clear improvement compared with last quarter, with a total of 620,358 tonnes handled, down 6.3% year-on-year.

It added that tonnage throughput for the first nine months of the year was 1,624,116 tonnes, representing a cumulative year-on-year drop of 16.3%.

“Further to the stabilising tonnage, we are delighted to see our commencement of partnerships with four new customers that launched new services to Hong Kong in the third quarter,” said Lilian Chan, the company’s general manager for marketing and customer service.

She added: “Looking forward, we expect further tonnage improvement hopefully in a pre-Christmas peak and we will, as always, deliver our consistently high quality services to our customers.”

Export volume was 117,045 tonnes for September and 328,305 tonnes for the third quarter, down seven per cent and 10.3%, respectively, year-on-year. Cumulative export tonnage for the first nine months of the year was 842,484 tonnes, down 20.5% compared to the same period of last year.

Import volume continued to improve in September with a growth of 8.5%, totalling 57,634 tonnes.  Import from US and Europe showed a satisfactory growth of 9.3% and 10.2%, respectively, in September. Total import volume in the third quarter was 169,064 tonnes, up 3.2% from a year ago while the cumulative import volume for the first nine months dropped 12.4% year-on year, with a total of 439,546 tonnes.
The transshipment volume was 37,712 tonnes for September and 122,989 for the third quarter, registering a year-on-year decline of 12.1% and 7.0% respectively.  Total transshipment volume for the first nine months was 342,086 tonnes, down 9.6% year-on-year.

HEALTHCARE products supplier Systagenix Wound Management, formerly the Professional Wound Care Business of Ethicon Incorporated, will have its European distribution network managed by DB Schenker for three years.

Systagenix will start operating its own global distribution network when moving away from the transition services being provided by Johnson & Johnson, the parent company of Ethicon.

“Our innovative and clinically proven products improve peoples’ lives, and can help reduce healthcare costs,” said Mark Kirkup, Systagenix vice-president for operations. “Through this partnership, with DB Schenker, we will be able to ensure they get to healthcare professionals across Europe in a timely and cost effective way.”

Systagenix stressed the importance of having a best-in-class distribution network. Its products are sold in more than 100 countries, from its production facilities in Gargrave, in the UK as well as from Girona, in Northern Spain, and Prague.

Girona and Prague will serve as regional distribution centres from Southern Europe and Central Europe, respectively, while the other European customers will be served directory from Gargrave.

DB Schenker will support Systagenix and provide it with logistics services, including the final deliveries to the company’s European customers within 48 hours after the placement of orders.

To ensure that the overall European inventories are well balanced and kept to a minimum, the regional fulfilment centres will be replenished from Gargrave on a weekly basis and under central inventory management.