Supply Chain & Logistics Group
Monthly e-News

 
 
Johnson Soans
Member of Consultative Committee  

Welcome to SCLG e-News. This is an online monthly electronic newsletter brought to you by the Supply Chain and Logistics Group (SCLG). SCLG is a non-profit organisation, set up to promote the cause of supply chain and logistics in the region. The organisation founded by highly qualified professionals from the industry,  comes equipped with the legal  backing  of  the  Dubai Chamber  of  Commerce and Industry. 

Through this newsletter, we will keep you updated on the latest trends and practices. With our indepth coverage and analysis, we aspire to serve as a benchmark guide to the industry. 

 


Sanjay Babur
Vice President Marketing
 

SCLG UPDATE

SCLG supports 3rd Materials Handling Exhibition

In its quest to further support the efforts towards enhancement of materials handling and logistics, the Supply Chain and Logistics Group (SCLG) based in Dubai actively participated in the recently concluded 3rd Materials Handling & Logistics Exhibition. “We want to actively support activities harnessing the materials handling and logistics industry”, said Shashi Shekhar, Founding President SCLG. 

The SCLG maintained a stand throughout the exhibition, linking with industry executives and professionals. At least 5,247 visitors saw the latest in the material handling and logistics: state of the art racks and shelves, small and giant fork lifts, robotics wrapping equipment, modern conveyor systems, space saving and “highly intelligent” storage systems, enhanced data readers and warehouse systems solutions. “I noticed prominent members of the industry and it is a very healthy sign. This shows that the supply chain and logistics professionals are very keen on learning about the latest in material handling”, added Shekhar.  

Organized by Epoc Messe Frankfurt, the 3rd Material Handling and Logistics Exhibition attracted 30% more exhibitors compared to last year. “It's getting bigger and better”, commented Shekhar, while touring the Dubai World Trade Center Halls, venue of the exhibition along with several SCLG members. Aside from Middle East/UAE exhibitors, the event saw participation of industry players from UK, Holland, Italy, USA, Germany, France and Sweden.

Global Supply Chain Conference 2006 slated in Dubai

The Council of Supply Chain Management Professionals (CSCMP), Dubai Roundtable headed by its Founding President, Shashi Shekhar played host to a delegation of Supply Chain Management Professionals based in Illinois, U.S.A. to finalise the plan of holding the Global Supply Chain Conference 2006 in Dubai.  

In the meeting held recently, Shekhar, together with key members of the Supply Chain Management Professionals (CSCMP), Dubai Roundtable, Clifford Cutelle, Sanjay Naik and Saikumar met Thomas L. Freese, CSCMP Executive Committee member and Education Strategies Chair, Abre Pienaar, CSCMP Global Supply Chain Conference 2006 co-chairman and Kathleen L. Hedland, CSCMP Director of Education & Roundtable Services.  

“Choosing Dubai as the venue for this international event reflects the role played by the Middle East supply chain and logistics professionals in the global market and we are indeed excited to host this global conference of supply chain and logistics professionals,” said Shekhar.   

“Although no definite schedule has been set, Cutelle said that “it will most likely happen on the first quarter of 2006.” 

The conference objective, as outlined by Pienaar, “is to organize a world class forum and open the floodgates of what is happening and would likely to happen in the supply chain industry and profession”. He emphasized that the global supply chain landscape is “changing dramatically” and the global forum can be a way of sharing experiences and adding professional inputs.

New members to the SCLG fold

The Supply Chain and Logistics Group proudly announces new corporate and individual member s who have joined the Group recently. The group welcomes them to its fold and thanks them for the support.

NEW Corporate Members

NEW Individual Members

     

Frieght Systems

Patrick Higgins – Gulf Food Trade LLC
     

CWT-SML Logistics LLC

Steven Sked -  Charles Kendall Freight Ltd.

     
   

Subin George - Charles Kendall Freight Ltd.

     

Freight Systems

Freight Systems today is an international operator with self owned offices in Singapore, Malaysia, China, India, Pakistan, Bangladesh, Sri Lanka, USA, Canada, and Kuwait. Its Group H.Q is situated in the Jebel Ali FZE, Dubai, UAE. Services offered by Freight Systems include Airfreight, Ocean freight, Contract Logistics, Project cargo handling, Customs Brokerage, Sea-Air transport, Land freight and International packing and removals. Freight Systems is also the GSA for Cargolux in Pakistan.

Upcoming Events:

3rd ASEAN Ports and Shipping 2005
Date – 21-22 September 2005

Venue – Surabaya, Indonesia www.transportevents.com

2nd Warehousing Logistics and Distribution Forum
Date – 17–21 September 2005

Venue – Movenpick Hotel, Dubai

2nd Annual Chemical Logistics & SCM Middle East 2005
Date – 26-28 September, 2005

Venue – Shangri-La Hotel, Dubai

3rd Thai Ports & Shipping 2005
Date – 24-25 November 2005

Venue – Bangkok www.transportevents.com

4th Intermodal Africa 2006
Date – 2-3 February 2006

Venue – Namibia www.transportevents.com

3rd Trans Pan Pacific 2006
Date – 27-28 April 2006

Venue – Dalian, China www.transportevents.com

4th ASEAN Ports & Shipping 2006
Date – 6-7 June 2006

Venue – Malaysia www.transportevents.com

Southern Asia Ports, Logistics & Shipping 2006
Date – 14-15 September 2006

Venue – Mumbai, India www.transportevents.com

3rd Intermodal Asia 2006
Date – 26-27 October 2006

Venue – Brisbane, Australia www.transportevents.com

2nd Trans Middle East 2006
Date – 29-30 November 2006

Venue – Dubai www.transportevents.com

5th Intermodal Africa 2007
Date – 29-30 March 2007

Venue – Durban, South Africa www.transportevents.com

SCLG endorsed the 2 nd Middle East Warehousing, Distribution and Logistics Forum

You have an opportunity to listen to Shashi Shekhar, founding president – Supply Chain & Logistics Group. (www.sclgme.org) 

Shashi Shekhar, will deliver a keynote address on Sunday, September 18, 2005 at the Movenpick Hotel, Dubai. Shekhar will discuss “Leveraging the Supply Chain Management concept as an enabler to attain organisational goals.” An important topic for supply chain professionals, his address will focus on how a high performing supply chain benefits business operations and contributes to organizational goals, understanding global trends in supply chain and logistics management and learning from trends to build organizational goals, translating organizational goals into tactical warehousing, logistics and distribution goals and managing 360 degree information communication for optimal results. 

A holder of Masters in Industrial Engineering from the prestigious IIT, Delhi, Shashi Shekhar is a well-respected professional in supply chain and logistics circles. Shekhar is a specialist in quality, productivity, supply chain and EPR/BPR side of business and is a member of the management team of Emirates Sky Cargo. Shashi Shekhar has recently been nominated to be a board of advisor for Council of the Supply Chain Management Professionals (CSCMP), USA which is supported by SCLG in U.A.E.

The 2 nd Middle East and Logistics Conference is being organized by Institute of International Research (IIR) (www.iirme.com/warehousing)—the details of the programme are placed on www.sclgme.org as under endorsed event column.

* Members of Supply Chain & Logistics Group (SCLG) are entitled to a 15% discount on the registration fees.

GATEWAYS

Jafza to manage Malaysian port

Jebel Ali Free Zone Authority (Jafza) International will manage, administer and market the Malaysian Port Klang Free Zone (PKFZ) under 15-year port management contract, Chan Kong Choy, Minister of Transport of Malaysia, announced. Choy was visiting Dubai to meet potential investors in the PKFZ project less than a year after Jafza International was awarded the contract to develop and manage the free zone, which will combine with Port Klang to become Malaysia's primary maritime and logistics hub. The project, which is the first commercial and industrial free zone in the country, is expected to be completed by the end of next year. 

He said high demand of PKFZ' facilities have enabled the project to be developed in one phase. The Malaysian government invested $350 million to develop a free zone in a total area of 405 hectares accommodating industrial and trade activity in collaboration with Jafza International. He said the bilateral trade between the UAE and Malaysia rose from 5.4 billion Ringgit in 2003 to 7.6 billion Ringgit last year, of which 80 per cent were Malaysian exports to the Emirates, while the rest were imports from the UAE, adding that it has all the potential to double in the coming years with the launch of the PKFZ.

Dubai airport Q1 passenger traffic rises 12.7 per cent

Dubai International Airport said first-quarter passenger traffic increased 12.7 percent to 6.0 million people from 5.3 million a year earlier. Cargo traffic increased 18.3 per cent in the first quarter of 2005 to 303,206 tonnes. Sheikh Ahmed Bin Saeed Al Maktoum, President of Dubai's Department of Civil Aviation, said in a statement that he hoped 25 million passengers would use the airport in 2005, up from 21.7 million last year. 

Dubai is the main trading and transport hub in the Arab Gulf region. Sheikh Ahmed said Dubai had begun work on a second commercial airport, close to Dubai's Jebel Ali sea port and free zone, about 40 km (25 miles) from the existing airport. He did not say when it would open.

TransportATION

Investors to bid for SR15b Saudi rail

A joint stock company by Saudi investors including some major international firms is in the offing to bid for the SR15 billion railway expansion project linking the east and west coasts of the Kingdom. A well-known French firm that has carried out railway projects in 250 cities worldwide is taking part in the proposed company planned by Saudi investors, according to a report. 

The move comes following the Saudi Railways Organisation's (SRO) invitation to leading North American, European and Japanese companies which operate high speed trains to present their proposals on the latest technologies. The project involves construction of 950 kms of new tracks between Jeddah and Riyadh, a 115-kms line between Dammam and Jubail, and upgrading of the existing rail link between Dammam and Riyadh.

 

Electronic road alerts on way

The implementation of the Freeway and Local Co-ordinated Operations Network (Falcon) programme and the Traveller Information Services, two key components of Dubai's Intelligent Transportation Systems (ITS) is on track and will be completed by January next year. Mattar Al Tayer, Assistant Director-General for Roads and General Projects (now the Deputy Director-General) at Dubai Municipality, said there is more to the programme than reaching information and traffic signal operations. According to him it will simultaneously support real-time traffic operations, incident management, and traveller information services, through a network of electronic message boards, Internet and wireless services, public kiosks and in-vehicle information. 

The project, which began last year, is one of a number of solutions the civic body has come up with to tackle the rising congestion on the emirate's road network.

The other two major links within Falcon will be the upcoming Ras Al Khor bridge (fourth crossing) and the Airport Tunnel, for which plans for installation of components has already been drawn. The project would enable the municipality to know of most of the incidents by collection of real-time traffic flow information via 63 freeway monitoring stations — point detection using radar sensors and wide-area detection using video image processing, which will be installed particularly along bridges, within tunnels, and at key interchanges, Al Tayer said. He added that stations will be non-pavement intrusive, for easy maintenance and relocation.

LOGISTICS

Dnata's revenue soars to Dhs1.4b

The revenue of Dnata, part of the Emirates Group, which handles the airport ground operations and other related services, rose to Dhs1.4 billion in the financial year ended March 31, up Dhs320 million or 29 per cent above last year's Dhs1.1 billion.

Announcing the group's results, Sheikh Ahmed Bin Saeed Al Maktoum, President of Dubai Department of Civil Aviation and Chairman of Emirates Group, said Dnata's profits of Dhs260 million represented an increase of Dhs87 million or 50 per cent compared to last year's Dhs174 million. 

Dnata Airport Operations handled 22.4 million passengers — 3.3 million more than the year before — and over 186,000 aircraft movements, which represented an increase of 16 per cent. The number of international airlines operating to/from the airport grew to 115. Dnata Cargo handled nearly 458,000 tonnes, an overall growth of 13 per cent. Its Freezone Logistics Centre extension in construction will enable it to handle an additional 300,000 tonnes of cargo annually. Emirates SkyCargo set a new record with nearly 840,000 tonnes of tonnage carried, up almost 180,000 tonnes or 27 per cent from last year's 660,000. The airline's cargo division's revenue of Dhs 3.4 billion ($940 million) was Dhs1.0 billion or 43 per cent higher than the year before, and raised its contribution to the carrier's transport revenue from 20- to 21 per cent.

Aramex reports 84% increase in net profits

Aramex International, one of the leading total transportation solutions providers in the Middle East and the Asian Subcontinent, recorded an exceptional 84 per cent increase in net profits with $4.1 million for the first quarter ending on March 31 and acquired two companies this year announced Fadi Ghandour, chief executive officer of Aramex in a Press conference. 

He said, “This is one of the strongest quarters we have ever reported and the revenues of the company increased approximately 22 per cent to $50.7 million for the first quarter compared to $41.6 million for the first quarter in 2004. The operating income increased approximately 74 per cent to $4.8 million for the first quarter of this year compared to $2.3 million for the same period last year.''

Announcement

Certification in Purchasing & Supply from Chartered Institute of Purchasing & Supply (U.K.) offered by the Dubai University College.

For details click here

MANUFACTURING

UAE, Iran seek JVs in manufacturing

UAE will witness a series of joint ventures with Iran in manufacturing sector in near future as Dubai serves perfect hub for export, import and re-exports, said Sheikha Lubna Al Qasimi, Minister of Economy and Planning while inaugurating the three-day Iran Exemplary Exporters Exhibition at Iranian Commercial Development Centre (ICDC). The inauguration of the centre was also attended by Shareat Madari, Minister of Commerce for Iran, and other dignitaries. 

The Islamic Republic of Iran Exemplary Exporters Exhibition is a three-day event and Iranian business houses have displayed their exportable products. The ICDC has currently 30 business houses and plans to help boost the business between the two countries. The centre is demonstrating the commitment between the two countries. Dubai has helped Iran in boosting its re-exports The event will definitely impart higher visibility for Iranian business houses and will help in developing commercial relations through this maiden exhibition in the centre, added Sheikha Lubna.

Two Dhs8.6b mega projects to come up

Two mega projects costing Dhs8.6 billion have been announced here, which apart from creating world class tourism and recreational facilities will lay the foundation for a complete industrial zone dedicated to automobile industry which will be lured to set-up their manufacturing as well as commercial bases in Abu Dhabi. The announcement was made by Mohammed Khamais Al Rumaithi, Chairman Four Directions Group Ahmed Bin Mohammed Al Dhahery, chairman of Bin Salem Group, who told a press conference that the project will be developed by a newly formed company-Elite Investment House. 

The consultancy work will be undertaken by Four D-Surbana Middle East, a joint venture between Surbana International Consultants and Four Direction based in Abu Dhabi. Mohammad Khamais Al Rumaithi said that the Middle East would have its first fully integrated development that promises to change the entire concept of the automotive trade not only in Abu Dhabi but also for the rest of the region. He said that the Autopolis will be spread over an area of 2X 0.6 kilometre and the mega development which will house a myriad of automobile related trades and commercial activities such as a world class exhibition and conventions centre, luxury automobile showrooms, an auto museum, a state of the art media centre, large commercial complexes, luxury villas, a boutique auto hotel, auto related retails malls, and great variety of recreational facilities including a mega theme park and a marina.

The autopolis will help position Abu Dhabi as a choice destination for tourist arriving from the Middle East /GCC region and the rest of the world.

TRADE & ECONOMY

Jordan invites UAE investors

Jordan, which is privatising non-core activities of the Royal Jordanian Airlines, airports, oil refinery and other infrastructure projects, has invited the UAE investors to reap the multi-billion dollar opportunities coming-up. Adel Al Quda, chairman of the Executive Privatisation Commission of Jordan, in an interview on the sidelines of a two day conference on privatisation of infrastructure project, said the government realising new ground realities embarked on a privatisation programme in 1996 and till now 64 state units have been sold out, raising $1.271 billion. 

He said that over 12,000 new job opportunities besides enormous business opportunities and business expansions have brought about major economic gains in the country. Also, he said that privatised companies have managed to attract investments of $1 billion. Quda said that government has plans to sell-off non-core business of Royal Jordan Airlines, airports, and Jordan Petroleum Refinery Company. About 49 per cent shares of the airlines would be sold out at the appropriate time at the there was deep depression world wide in the aviation sector.

New public company to import commodities  

The Foodstuff and Price Control Committee of the Abu Dhabi Planning and Economy Department has decided to set up a company to import foodstuff directly from the manufacturers in a bid to fight manipulation and high prices. The committee met to explore mechanisms which allow consumer cooperative societies to face manipulation of some commodities whose prices went up recently between 25 to 30 per cent, adding additional burden on the consumer.  

The committee, which composed of members from the cooperative societies, the department, Abu Dhabi Investment Company and Abu Dhabi Foodstuff Company, discussed a number of proposals on how to deal with the suppliers who are insisting on increasing prices without taking into account the suffering of the low and medium income categories. The committee urged the government concerned authorities to support the new non-profit company to deliver its mission properly. Cooperative sources in Abu Dhabi informed the committee that some retailers and hypermarkets had bowed to pressure from suppliers to raise prices of essential items between 25 to 30 per cent — an increase which was refused by cooperative societies.

Cooperative societies have reached an agreement not to subject to pressure from suppliers. The sources affirmed that the battle against suppliers would only be won through raising public awareness and willingness of the consumers to buy the available alternatives.

  RETAIL

Bur Dubai's thriving used-computer market

There's a thriving used-computer market in Dubai. Scores of shops in the Computer Lane in Bur Dubai sell scores of second-hand computers and notebooks everyday. These computers and notebooks are bought in bulk from banks and corporations that are regularly upgrading their systems and dumping "obsolete ware" to keep up with the march of technology. The lure to the buyer: The near-perfect condition of the machine, and the price, which could be as low as Dhs250. Most buyers — largely Indians and Pakistanis — go in for used computers if the configurations tally with their requirements, and if the machine works. Of course, the price has to fit the pocket, which it generally does. 

Banks and big businesses are forced to keep pace with the ever changing technology. "Banks and corporations have to provide their executives with latest laptops every two to three years. A relatively old notebook is bad publicity for the image of the corporation or bank. Therefore, it is necessary to equip to executives with the latest expensive notebook computer," says a source from a major bank in Dubai. This is where the second-hand computer dealer steps in. He buys used notebooks and computers from banks and corporations, who get a price for them even if it is less than 25 per cent of the original price.

Al-Futtaim Group to open mega IKEA store at DFC

IKEA, a member of the Al-Futtaim Group, will be opening a 35,000 sq metre store at Dubai Festival City's retail arm, Festival Centre, in November this year. Four times bigger than IKEA's existing location at Deira City Centre, the new store will include parking for 1,200 vehicles and will offer higher levels of service through increased floor space, an increased product line-up and overall enhancements.

Jim McCallum, Al-Futtaim Group Director - Retail Division, said the store would stand as a shining example of the IKEA concept of supplying well-designed functional home furnishings at exceptionally low prices. "Customers will be able to browse and feel at home like never before."

WAREHOUSING

Gas cylinder warehouse shut down

Civil defence authorities here ordered the closure of an old house that was being used to store old and empty gas cylinders. The move followed several public complaints that the house located in a residential area posed serious safety and health hazards. A source at the RAK Civil Defence Department (RCDD) said that the store lacked minimum safety and health requirements. The department also issued an official warning to the house owner that stern measures would be taken against him if the violations were repeated. The RCDD conducts surprise raids on gas agencies to ensure that they conform to safety regulations.

AWARDS

Burj Al Arab triumphs at DEPA Mideast hotel awards

B urj Al Arab triumphed at the DEPA Middle East Hotel Awards, beating three entries to be named Middle East Hotel of the Year. The awards, bestowed by an independent panel of international judges, were presented during a glittering ceremony at Dubai's Madinat Jumeirah attended by more than 750 people from the international hotel and tourism sector. The One & Only Royal Mirage, Dubai scooped the Middle East Resort Property of the Year while Intercontinental Phoenicia, Beirut was named Business Hotel of the Year. The trophy for New Business Hotel went to the Madinat Jumeirah, Dubai and The Ritz-Carlton Bahrain Hotel and Spa won Hotel Spa Facility of the Year.

A clearly delighted Marc Dardenne from The Ritz-Carlton, Dubai was crowned Hotel Manager of the Year. He was joined on stage by an equally thrilled Alyssa Palagnas from The Ritz-Carlton, Dubai as Young Hotelier of the Year. The full list of winners and highly commended nominees: The Middle East Hotel of the Year — Burj Al-Arab Hotel, Dubai. The Middle East Resort Property of the Year — The One & Only Royal Mirage Hotel, Dubai. Business Hotel of the Year — Intercontinental Pheonicia, Beirut.

New Hotel of the Year — Madinat Jumeirah, Dubai. Hotel and Spa Facility of the Year — The Ritz-Carlton Bahrain Hotel and Spa. Convention, Conference and Banquet Facilities Award — J.W. Marriott, Dubai. Food and Beverage Award — The China Club, Intercontinental, Dubai. Hotel Advertising Campaign of the Year — Le Meridien Al-Aqah Beach Resort. Commitment to Quality Award — The Ritz-Carlton, Dubai.

Energy Conservation and Environmental Awareness Award — Towers Rotana Hotel, Dubai. Excellence in Interior Design Award —Shangri La Hotel, Dubai. Human Resource Development Award — The Fairmont Hotel, Dubai.

Sheikh Ahmed launches two pioneering awards

With the aim of initiating tourism for people with special needs, Sheikh Ahmed Bin Saeed Al Maktoum, chairman of Dubai Department of Civil Aviation launched two pioneering awards. During ATM 2005, Sheikh Ahmed pointed out that the two initiatives were aimed to prompt hotels and travel and tourism agents to generate services that help serving people with special needs, a viable tourist segment that form 10 per cent of the total number of tourists worldwide. 

An annual award will be given to the best services been provided by hotel and tourist company for disabled tourists. Travel and tourism agents are expected to innovate in provide most appropriate facilities that would help this segment enjoy their travel and vacations. The second award will be offered to the best Arabic and English journalism investigation report that highlights the status of people with special needs' tourism.

For more information Email :info@sclgme.org or log onto : http://www.sclgme.org/