Issue 44 | FeBRuARY 2012

YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE

www.log.ae

Ups & downs of real estate

First metro in the Maghreb

Industry’s leading award ceremony

LOG. LEO 2012

IndustrIaL rEnts

aLGIErs MEtrO

OVERVIEW | 28 PREVIEW | 32 ANALYSIS | 40

WAREHOUSE MANAGEMENT SYSTEMS

WMS promises efficiency, agility and performance in supply chains | Page 06

WAREHOUSE MANAGEMENT SYSTEMS

Ey_Cargo2011_Stopwatch_LOG ME_206x270_V2.ai 1 20/10/2011 14:17

Reinhard Wind

Managing Director,

Gutenberg Publishing FZ-LLC

February 2012 I 3

Industrial production and trade to stabilise in 2012In order to evaluate our industry, we need

to read the figures correctly. The figures

released by well established associations

help us understand how the markets have

performed and where they are heading.

Despite the gloomy news from the West,

we still see a resilient Asia, Africa, Middle

East and Latin America, as a recent report

by an international bank highlights: “In

continuation of a two-speed world, a fragile

West is contrasting a resilient East.”

According to IATA, last year passenger

demand rose 5.9 per cent compared to

2010. However, cargo markets contracted

by 0.7 per cent, but recorded positive

demand growth in December of 0.2 per

cent. The average passenger load factor for

2011 was 78.1 per cent, down from 78.3 per

cent over the same period, while the freight

load factor was 45.9 per cent, down from

48.1 per cent in 2010. This means healthy

passenger growth, primarily in the first half

of the year, was offset by a declining cargo

market. “Surveys indicate that business

confidence, a leading indicator for changes

in cargo markets, turned up in December,

suggesting that industrial production and

international trade may be stabilising,” the

industry association comments.

Despite the not so positive news, our

flagship project LOG. Middle East magazine

stands high and continues to deepen

industry relationships. As a director, part

of my role entails meeting with industry

executives on a regular basis. Exhibitions

and conferences have always offered

the perfect venue to meet many leading

figures of the industry under one roof.

Almost all of them reveal high expectations

of the year 2012.

The package we offer to the market

is not limited to this magazine. We are

currently busy with the organisation of

monthly networking events together with

the industry’s leading ceremony – LOG.

LEO Awards scheduled to take place in the

second quarter of the year. Fine tuning is

ongoing and more details on this prestigious

event will be announced very soon.

Again, our February edition is full of

informative articles on various logistics

issues. The main story focuses on

Warehouse Managements Systems and

brings together valuable inputs by leading

companies in the market. Every company’s

warehousing requirements differ and it is

only possible to decide what a business

really needs after a careful feasibility

study and analysis. Rushing to decide on

a WMS may just result in financial loss.

We also take a look at the Maghreb’s

first underground subway in Algiers,

which has opened after three decades

of delays. We also consider what makes

great safety leaders and feature the state

of the aviation fuel logistics industry. As

usual, the events calendar is a very handy

tool for the industry executives to decide

ahead. Finally, I look forward to receiving

your feedback.

PUBLISHER’S NOTE

IN THIS ISSUE

FEBRUARY 2012

06

WMS is designed to control the storage and movement of items in a warehouse, customised to suit each customer’s requirements. LOG. Middle East takes a look at various offerings in the market.

WarEhOusE ManaGEMEnt systEMsCOVER STORY

TRENDS

As businesses look for ways to reduce freight costs, this colorful illustration comparing global sea and air freight captures the latest need-to-know stats.

GLObaL tradE

PREVIEW

Recognising the best in logistics and supply chain, the industry is gearing up for the 2012 edition set to take place in Dubai, UAE.

LOG. LEO aWards

PROFILE

The company’s ability to turn around the aircraft of regional customers is a focus for Shell Aviation in addition to providing professional services to the business aviation segment.

shELL avIatIOn

ANALYSIS

Cluttons provides an overview of Dubai‘s industrial rental market in 2011 and insights on how the market is expected to perform this year.

rEaL EstatE

INNOVATION

Leaders have traits that enable them to grow, make profit, be resilient, and at the same time transform

safEty LEadErs

OVERVIEW

After years of delay, the only metro system in the Maghreb started operations last November.

aLGIErs MEtrO systEM

1.702.582,88Tonnes

942.828,01Tonnes

1.171.067,57Tonnes

823.192,57Tonnes

383.195,88Tonnes

458.330,64Tonnes

125.025,95Tonnes

575.612,05Tonnes

1.877.584,65Tonnes

1.349.262,90Tonnes

409.428,99Tonnes

363.894,03Tonnes

815.776,23Tonnes

433.262,68Tonnes

1,1Mln TEU

2,4Mln TEU

0,2Mln TEU

0,5Mln TEU

1,2Mln TEU

1,9Mln TEU

1,2Mln TEU

2,5Mln TEU

1,2Mln TEU

2,1Mln TEU

1,8Mln TEU

2,4Mln TEU

1,6Mln TEU

1,4Mln TEU

24,4Mln TEU

10,1Mln TEU

7,3Mln TEU

14,6Mln TEU

One Way

Round Trip

Outward

Inward

Air freight Flow of goods globally 2010

Container �ows worldwide 2010

Sea Freight

Africa

Asia

Africa

North America

Africa

Africa

South Asia / Ocenia

Asia

Latin America

Asia

Latin America

North America

Latin America

Europe

Far East

Europa

Far East

North America

Asia / Paci�c

North America

Europe

North America

Africa

Europe

Near/Middle East

Europe

Asia / Paci�c

Europe

Europe

South America

South America

North America

12 t1 TEU

Value sea freight / ton: US$5,800

1 TEU equals approx. 12 tonnes

1 kg of air freight costs US$1 to US$1,5

Percentage of shipping containers on global cargo tra�c

Share of air cargo on global volume of goods

Volume distribution of commodity �ows Transport prices in comparisonWeight / Value ratio

2 %70 %

1 kgUS$1

to US$1,5US$0,01

to US$0,10

1 kg of sea freight costs US$0,01 to US$0,10

1 kg

Sea Freight

6 t

Value air freight / ton: US$100,000

One box corresponds to 6 tonnes

Air Freight

Illustration: LOG.Kompass Sources: ISL and various associations

24

32

36

40

42

28

LOG. WINDOW 14 PRODUCT UPDATE 44 LOG. CLASSIFIEDS 46 LOG. CAFé 48 EVENTS CALENDAR 50

I February 20126

COVER STORY: WMS

Creating a more efficient WMSWarehouse Management systems (WMs) not only manage what is inside a warehouse but go beyond the physical boundaries to create more efficient business operations

February 2012 I 7

COVER STORY: WMS

Considering the current challenges

with the global economy, increased

competition, shrinking margins

and rising costs, all businesses, especially

those in logistics, need to think more

carefully about the way they manage their

inventory. As experts underline, efficient

warehouse operations ultimately lead to

less stock (read cash) being parked, less

time spent by the staff locating, picking

and preparing items and timely delivery of

the orders to the clients.

Companies are also striving to reduce

their warehouse space requirements. With

evolving technology, some products are

directly transported from the factory to the

sales points totally eliminating the need for

storage. However, this is not always the case.

Warehouses still form a major component

of the supply chain and a warehouse

management system is designed to control

the storage and movement of items in a

warehouse. The role of WMS is expanding

to include light manufacturing, transportation

management, order management, and

complete accounting systems, as stated

by CM Maran, Assistant Professor at IT &

Systems Division of VIT University.

“The primary purpose of a WMS is

to control the movement and storage of

materials within an operation and process

the associated transactions. Directed

picking, directed replenishment, and

directed put away are the key to WMS.

The detailed setup and processing within

a WMS can vary significantly from one

software vendor to another; however the

basic logic will use a combination of item,

location, quantity, unit of measure, and

order information to determine where to

stock, where to pick, and in what sequence

to perform these operations,” the professor

clearly explains.

How does WMS work?

“Wireless warehouse solution works by

linking warehouse workers to the back-end

application server where warehouse activities

are being recorded via a wireless handheld

device. The device tells employees where to

go to pick, put away, count, or move product

within the plant,” says Nasir Ayub, project

manager at Naxtor Technologies.

“This translates to a better control over

the movement and storage of materials

within the warehouse. The system also

maximises the efficiency of the receipt and

I February 20128

COVER STORY: WMS

shipment of goods, optimises warehouse

space utilisation and the staff know at all

times exactly where goods are stored.”

Mr. Ayub says the benefits of a WMS

during the routine stages of picking and

packing, result in a streamlined workflow.

Once an employee enters his ID details,

the device shows the next batch to be

picked up according to priority. The system

then directs the picker via the wireless

handheld device to the specified location.

The product barcode is scanned to confirm

the correct item has been picked up in the

correct quantity.

The project manager at Naxtor

Technologies, Mr. Ayub, highlights that the

WMS solution combines front and back-

end technology and being a web-based

solution, it’s highly extensible and platform

independent. “All you need is a browser

and a wireless handheld device to work

with. WMS retrieves and stores information

in the centralised database as the server,

thus cutting the risk of data synchronization

errors and eliminating duplicate entries.”

Increased activity

Coming back to the local scene, one of

the leading companies in warehouse

management solutions is Ehrhardt+Partner

Solutions (EPS). Founded by Hermann

Ehrhardt in 1987, the product range of the

E+P Group incorporates the warehouse

management system LFS 400, warehouse

planning and consulting, pick-by-voice as well

as wireless data and barcode solutions, RFID,

material flow computers, individual customer

specific solutions and warehouse seminars.

The marketing manager Muthanna

Muckatira is a visionary man and very

optimistic about business opportunities in

the region: “It’s critical that we understand

the changing market dynamics and tow the

line with our customers’ requirements. This

might include carrying out consulting and

systems study prior to working out a fully

fledged design. Our marketing strategies

will have to adapt to this ever changing

landscape in the way logistics business is

currently carried out.”

EPS’ marketing manager sees increased

activity in the WMS space and expects

this trend to continue. He believes

customers are engaging further and

moving forward with their plans to become

more competitive by employing newer

technologies. “WMS is a business critical

application that has an impact on daily

operations. The future will belong to the

suppliers who can continue to innovate

and expand their portfolio of products and

services and execute them effectively on

time,” he underlines.

However, not all business may fully

comprehend what a tool like WMS can bring

to their business. Mr. Muckatira says that

often a company either undervalues the

benefits or inversely overestimates what a

WMS will achieve for them. This is purely

down to education and can be resolved by

ensuring that before any decision is made,

requirements should be explored and

analysed right at the beginning.

“The costs for the construction and operation of a warehouse represent up to 25 pc of the total logistics costs. An efficient warehouse planning and the complex project realisation will contribute to cost savings and enable a fast return on your investment.” - EPS

Muthanna Muckatira, Marketing Manager, Ehrhardt+Partner Solutions

EPS Logistics Training Centre

“We make companiessustainable and competitiveon an international level.

We enhance their sales structuresand do everything that is neededto make them succeed.

We do that in the shortestperiod of timethat you can think of.”

Wind & Wind

what we offer

market communication•brand positioning•product placement•

sales strategy execution•sourcing new clients•contract negotiations•

customer relationship management•project management•

company representation•

SalesSuccess

Management

Wind & Wind FZ LLCP.O.Box 487177Dubai Media City Represented byGutenberg Publishing FZ-LLCDubai, United Arab Emirates

T +971 4 4334 360F +971 4 4517 945E info@wind-wind.comW www.wind-wind.com

I February 201210

COVER STORY: WMS

Educating the market

As rightly emphasised by Mr. Muckatira,

the clients need to be educated on the

pros and cons of such systems. That is why

the EPS’ Logistics Solutions Centre (LSC)

in Dubai Logistics City aims to increase

the awareness and standards in logistics

education by conducting demonstrations

in modern logistics processes, WMS

software, state-of-the-art picking technology

and more. The company’s training centre

is expected to help solve the logistical

challenges going forward.

“In our training center we coach

professionals and employees involved

in the supply chain to see the enormous

potential for improvement. New tools and

methods help understand the processes,

increase supply chain efficiency and avoid

mistakes, thus increasing the motivation

of people. Minimal mistakes, quick

deliveries, optimum flow of goods, and

happy employees will lead to enthusiastic

customers and of course, new business!”

highlights the EPS’ marketing manager.

Christian Gebler, General Manager

of Ehrhardt+Partner Solutions is equally

Source: Ehrhardt+Partner Solutions

Best-Fit Warehouse Design

Warehouse DesignTransportation system

Warehousing system

Distribution system

Automization system

Control system

Organizational system

Planning system

Commissioning system

Evaluated according toTechnology

Investment

Operational Costs

Strategy

Handling Equipment

Material FlowEquipment

Storage Equipment

CommissioningEquipment

Packaging andPalletization Equipment

Picking and PackingEquipment

Storage Goods

Transport Equipment

Materials Management

Organization

Control Technology

Planning

enthusiastic about the training facility:

“We see huge possibilities in DLC, where

the most important logistics market

of the future will be. And this is why it

was exceptionally important for us to

establish such a logistics centre that

provides the latest warehouse solutions

for the future. We are now in a position to

implement complex warehouse projects

and modernise on-site in accordance

with international requirements and

quality standards.”

Use of advanced algorithms

Another leading supply chain solutions

provider, Manhattan Associates targets

multi-channel retailers, consumer goods

manufacturers, pharmaceutical companies,

3PLs and wholesale distributors. Manhattan

Associates’ WMS capabilities go far beyond

“Efficient planning is the basis for any successful logistics project. Independent consulting plays a decisive role in warehouse planning. This is especially important for the concept phase, in which a cost-optimised and flexible solution is essential.”

Operational requirements: static and dynamic capacities, other parametersRegulatory requirements: Regulations, Safety, Traeability etc.

DEAL+ by EPS• Definition of the project target

- Kick-off meeting

- Definition of the project target

- Coordination of deadlines

• Evaluation of the current situation

- Sighting of the warehouse: building,

equipment, items, processes etc.

- Recording the information and

interviewing employees in the warehouse

• Analysis phase of the recorded information

- Analysis, preparation and evaluation of

the provided information

- Identification of weak points and

critical areas

- Visualisation of the essential material

and information flow

• Logistic concepts

- Presentation of possible new processes

- Proposals concerning the warehouse

layout and equipment

- Quickly realisable and strategic

recommendations for action

• + Presentation of results

- Presentation of the conclusions and

elaborated results

- Closing meeting with a feedback and, if

required, definition of further steps

I February 201212

COVER STORY: WMS

basic picking, packing and shipping. By

using advanced algorithms to mathematically

organise and optimise warehouse

operations, their customers are able to

transform their warehouses into a critical

strategic component in their supply chain.

The company’swarehouse management

solutions monitor vendor compliance,

efficiently manage multi-channel

distribution, and respond quickly to

shifting demand to optimise performance.

They also enhance inventory management

by increasing accuracy, improving order

fulfilment and reducing order cycle time.

Receiving and shipping are streamlined

as well to facilitate cross-docking and

expedite back-ordered products. And

cycle counting capabilities eliminate

annual physical counts. They are able to

plan and balance operative workloads

with labour management integration and

optimise warehouse pick layout with

slotting optimisation.

Selling proposition

Explaining what makes their product

unique and competitive in the market

over others, Martin Lockwood, Senior

Director at Manhattan Associates says,

“Manhattan offers WMS on two platforms.

An open systems version is part of the

Manhattan SCOPE supply chain solutions

platform which uses predictive and

algorithmic technology to refine supply

chain operations in real time as internal or

external conditions change.”

Mr. Lockwood further states that the

system breaks down functional silos to

create holistic, end-to-end supply chain

visibility and insight that prevent decisions

in one supply chain operational area

unknowingly impacting another area.

The solution also identifies and optimises

opportunities across the entire supply chain

for improved performance.

“An alternative version of Manhattan’s WMS

resides within the Manhattan SCALE solution

platform which offers a blend of features,

functionality and technology for organisations

looking for a high-performing and affordable

supply chain solution,” reveals the senior

director to LOG. Middle East.

“Built on the Microsoft .NET development

platform and the Microsoft Windows

Server® and Microsoft SQL Server® family

of products, it has sophisticated logistics

management capabilities, flexibility to scale

up or down quickly and easily, can be

configured and deployed quickly, has an

easy-to-use interface and single sign-on

capabilities, requires minimal training, and

provides a low total cost of ownership.”

Industry’s approach to WMS

Asked about the approach of the

industries in the Middle East to warehouse

management systems, Mr. Lockwood replied,

“Given the prevailing macro-economic

conditions, we expect we’ll continue to see

interest from customers in solutions that

will make their supply chains more efficient,

allow their supply chains to become more

agile and generally perform in a way that

maximises customer satisfaction and protects

or enhances revenue streams.

“Technologies that can effectively

address these challenges include not just

warehouse management but complementary

solutions such as slotting optimisation,

labour management, extended enterprise

management, distributed order management

and supply chain intelligence.”

The senior director also shares his

views on the future of the industry:

“Supply chains in the future will need

to be increasingly flexible, scalable and

agile to address increasingly specific and

rapid changing market requirements. This

is essential to ensure companies can

maximise sales at every opportunity, make

their extended supply chains as efficient

as possible and protect the organisation’s

brand equity. The future for warehouse

management system vendors is bright as

“The future for warehouse management system vendors is bright as long as the WMS solutions they develop can effectively enable user companies to address these challenges as well as be part of a much broader and integrated set of supply chain solutions.”

Martin Lockwood, Senior Director, Manhattan Associates

February 2012 I 13

COVER STORY: WMS

long as the WMS solutions they develop

can effectively enable user companies to

address these challenges as well as be

part of a much broader and integrated set

of supply chain solutions.”

Operations at the speed of thought

There is a wide range of options to choose

from for more efficient operations. Among

them is the SAP Extended Warehouse

Management (EWM) application, an integral

part of the SAP Supply Chain Management

(SCM) application, which addresses

advanced warehouse management

functions and processes. The software

helps companies achieve higher process

and stock visibility, better warehouse

planning, and more efficient distribution and

storage processes.

“Organisations can instantly explore and

analyse all of their transactional and analytical

data in real time from virtually any data source.

Operational data is captured in memory as

it occurs, and flexible views expose analytic

information at the speed of thought. External

data can be added to analytic models to

incorporate data from across the entire

organization,” explains Ahmed Syed, Industry

Principal- Discrete Industries, SAP Middle East

and North Africa LLC.

“SAP EWM provides flexible, automated

support for processing goods movements

and managing stock in your distribution

facilities. It is designed to work specifically

in high-volume warehouses that require

support for complex processes. You can

organise, control, and monitor these goods

movements using SAP EWM.”

Identifying ‘Exact’ problems

Exactus Systems in JLT Dubai also has a

competitive offer in WMS. The Exactus SCM

suite integrates the core logistics, fulfillment

center and warehouse management

functions in an easy to use and deployable

package that provides real-time visibility of

operations to help optimise supply chain

and warehouse processes.

Nasser Tufail says the suite includes

the warehouse management system (for

2PL, 3PL and 4PL companies), a mobile RF

application to support RF-enabled barcode

devices, a transportation management

system, a freight management system,

ERP, and HR management and trading

partner management.

The advantage with the Exactus SCM

applications is that they do not lock

customers into a particular operating

system, database platform or architecture.

All major databases are supported.

Mr. Tufail has observed that when

companies begin utilising WMS for the first

time, one challenge they typically face is that

of data synchronisation with their existing

systems such as an ERP. They may notice an

inventory balance discrepancy, which creates

doubts in some minds, and this can leads to

analysing the large number of transactions

to investigate the reasons for the mismatch,

even resulting in potential work stoppages.

“Moreover, the right expectation levels

must be set at the outset, as it is highly

unlikely that a WMS system may be giving

wrong results, with the problem lying

elsewhere. There is an initial learning curve

that is required for effective use of a WMS

and, not surprisingly, the first time a WMS

is deployed, user productivity can actually

drop before it improves later on as they

become more proficient with the system,”

Mr. Tufail observes.

Ten WMS trends to consider

When selecting new software, you

have an excellent opportunity to

leapfrog to the next generation

of technology and best practices.

Consider the latest technology

trends and developments, and

then dramatically improve your

effectiveness:

1. Web-based, software as a service (SAAS)

2. Voice-directed picking and putaway

3. Service-oriented architecture (SOA)

4. Radio-frequency identification (RFID)

5. User-friendly user interface (UI)

6. Coordinated supply chain

execution processes

7. Integrated labour and yard management

8. Improved performance management

9. Supply chain globalisation

10. Total cost of ownership (TCO)

Source: Software Advice

I February 201214

Best e-services adopters awarded Top performers in electronic services

adoption in the trade and logistics industry

were recently honoured by Dubai Trade,

the trade facilitator under Dubai World, at its

4th Annual E-Services Excellence Awards

held under the patronage of HH Sheikh

Mohammed Bin Rashid Al Maktoum, Vice

President and Prime Minister of the UAE and

Ruler of Dubai.

HH Sheikh Ahmed Bin Saeed Al

Maktoum, Chairman, Dubai World, was the

chief guest at the gala ceremony, which

was also attended by HE Sultan Ahmed Bin

Sulayem, Chairman, DP World, HE Jamal

Majid Bin Thaniah, Chairman of Dubai Trade,

Vice Chairman of DP World and Group CEO,

Port& Free Zone World, and Eng. Mahmood

Al Bastaki, Director, Dubai Trade.

The function held under the theme of

“Appreciating e-Transformation in Trade

& Logistics”, was also attended by key

dignitaries from the government and private

sector, top management and decision makers

from manufacturing and trading companies,

supply chain service providers, bankers and

financiers, and senior executives from Dubai

World and its business units.

ESEA 2011 recognised and honoured

nine of Dubai Trade’s customers that posted

the best performance in adopting e-services

and e-solutions offered on the portal, www.

dubaitrade.ae.

HH Sheikh Ahmed Bin Saeed Al Maktoum,

Chairman, Dubai World, said: “Dubai Trade

and its ESEA initiative are fine examples

of how Dubai has been encouraging and

promoting a knowledge-based economy. The

UAE has been a front-runner in establishing

itself as a leader in e-government services.

We commend Dubai Trade for successfully

facilitating e-commerce and support its

untiring efforts in complementing Dubai’s

growth as the region’s trading hub.”

HE Sultan Ahmed Bin Sulayem, Chairman,

DP World, added: “DP World and DP World

customers benefit directly from Dubai Trade’s

e-services through the seamless, real-time

e-transactions they conduct on the portal.

The integration of trade and logistics

processes enabled by Dubai Trade adds

strength and value to the operational

efficiencies achieved at DP World’s flagship

facility. We commend Dubai Trade for the

catalytic role they play in supporting trade

growth in Dubai.”

“It is heartening to see such widespread

enthusiasm to embrace e-services and

e-transactions, undisputedly the way of

the future for the trade and logistics sector.

With its transparent and hassle-free online

solutions, Dubai Trade has empowered its

customers with a competitive advantage that

is unmatched in the region. Your success,

individually and collectively, in adapting to

electronic transaction and maximising its

use takes Dubai another step closer to its

goal of providing seamless supply chain

services. The supply chain industry is our

partner in realising our vision of excellence

in e-commerce. Congratulations to all the

winners of ESEA 2011,” reiterated HE Jamal

Majid Bin Thaniah, Chairman of Dubai Trade,

Vice Chairman of DP World and Group CEO

Port & Free Zone World.

Eng. Mahmood Al Bastaki, Director Dubai

Trade, expressed that each winner and

every industry representative embodies the

spirit of what they set out to achieve as an

online trade facilitator. He stressed Dubai

Trade remains committed to making trade

ever easier and delivering benefits in cost

and time savings to its customers. The ESEA

event was supported by DP World, Economic

Zones World, Dubai Customs, Dubai Multi

Commodities Centre, and the Abu Dhabi

National Insurance Company (ADNIC).

HH Sheikh Ahmed Bin Saeed Al Maktoum, Chairman, Dubai World, and HE Sultan Ahmed Bin Sulayem, Chairman, DP World, HE Jamal Majid Bin Thaniah, Chairman of Dubai Trade, Vice Chairman of DP World and Group CEO Port & Free Zone World, Eng. Mahmood Al Bastaki, Director Dubai Trade, with the ESEA Award winners

LOG. WINDOW

4th annual E-services Excellence award Winners:• Shipping Agent of the Year-Containerised Cargo: APL Emirates LLC

• Shipping Agent of the Year-General Cargo: Seacon Int’l Freight & Shipping Agency LLC

• Importer of the Year: Barakat Vegetables & Fruits Co LLC

• Exporter of the Year: Sony Gulf FZE

• Free Zone Company of the Year: Danzas AEI Emirates

• Freight Forwarder of the Year: Agility Logistics Solutions

• Clearing Agent of the Year: JMD Shipping Services

• Hauler of the Year: Express Transport Est.

• Special Award for Cargo Gate Pass e-Services: Danube Building Materials FZCO

“Dubai Trade and its ESEA initiative are fine examples of how Dubai has been encouraging and promoting a knowledge-based economy. The UAE has been a front-runner in establishing itself as a leader in e-government services.”

- HH Sheikh Ahmed Bin Saeed Al Maktoum, Chairman, Dubai World

INNOVATIVE LOGISTICSGeodis Wilson UAE LLCPO Box 219, Jabel Ali Freezone UAETel. +971 4 880 9220 Fax. +971 4 880 9337info@geodiswilson.com

www.geodiswilson.com

TransCaspian brings major players under one roof TransCaspian, the annual international

transport, transit and logistics exhibition,

which takes place in Baku, Azerbaijan

has become the most important transport

forum in the region, through which

innovative technologies and equipment for

the transport industry are demonstrated,

new offices opened, and joint ventures

established. Since its launch, the exhibition

has been supported by the Ministry of

Transport of the Republic of Azerbaijan,

and worked closely with TRACECA, the

leading transport industry organisation. The

exhibition is organised by Iteca Caspian

LLC, part of ITE Group Plc.

The 2011 edition was also a success.

The official opening ceremony was

attended by Ziya Mamedov, Minister of

Transport of the Republic of Azerbaijan;

Farid Mamedov, Director of Iteca Caspian;

directors of government transport

agencies; diplomats; senior managers of

major transport companies, the exhibition

organisers and media representatives.

There are projects to build modern railway

lines, roads, ports, a shipyard and more

in the country and beyond. This work will

undoubtedly serve one of the major goals

of the national economy: the development

of the non-oil sector. As a result of major

government programmes that reflect the

development of the transport industry, the

new technologies and innovative projects,

which were on displayed at the exhibition,

are constantly improving.

For 10 years, the exhibition has brought

together a serious body of exhibitors,

including logistics operators; rail, sea and

air transport companies; shipbuilding and

road-building companies; distributors of

commercial vehicles; and many other

businesses from the transport sector. The

tenth anniversary edition of TransCaspian

presented 54 companies, organisations and

industry bodies from Azerbaijan, Germany,

Iran, China, Latvia, Russia, Turkey, Ukraine,

France and Czech Republic.

Half of the exhibitors this year were

foreign companies and the number of

international exhibitors is increasing from

year to year. In 2012, the exhibition will

be held at Baku Expo Centre from 13 to

15 June.

LOG. WINDOW

I February 201216

LOG. WINDOW

Volvo Group highlights traffic safety “Zero accidents with Volvo products”

was the theme for a safety seminar held by

Volvo Trucks in Abu Dhabi in conjunction

with the Volvo Ocean Race stop-over. Invited

by Volvo and its UAE distributor FAMCO,

participants from government, key customers

and media shared the Volvo expertise on the

subject of traffic safety, presented by Volvo

Trucks Traffic and Product Safety Director

Carl Johan Almqvist.

Volvo invented the three point safety

belt which is now a safety invention serving

the entire automotive industry. Based on

research performed by Volvo Trucks Accident

Research Team which has documented the

cause and outcome of accidents involving

trucks, Volvo Trucks has developed a wide

range of safety features with the aim of

minimising the safety risk while driving or

interacting with trucks in traffic.

Carl Johan Almqvist especially put forward

that the safety belt is the safety feature saving

the most lives and also described how the

Volvo Truck Electronic Stability Program -

stabilising truck trailers - can contribute to

saving lives avoiding roll-over accidents.

“Making more driver and passengers use

the seat belt is a good start when aiming for

zero accidents”, says Carl Johan Almqvist.

“The other part is making drivers aware

that attentiveness is crucial for driving safe.

Research shows that human factors are

involved in 90 per cent of all accidents. For

instance texting with your mobile phone while

driving makes it 23 times more likely you will

have an accident.”

“We used Volvo Ocean Race as a golden

opportunity to invite important stake holders”,

says Paul Floyd, Managing Director of

FAMCO. “Here we were able to emphasis

on Volvo’s core value of safety and draw

relevance to the roads in the UAE. The Volvo

Ocean Race presents an ideal opportunity

to talk about a very important and serious

message. The safety issues presented

here were an eye opener for many of our

customers and certainly gave some new

valuable insights.”

FAMCO wins international dealer of the year

Furthermore, FAMCO recently won the

Volvo Construction Equipment International

Dealer of the Year award as the Al-Futtaim

group company acquired the exclusive

dealership for Volvo Construction Equipment

in Saudi Arabia. FAMCO had earlier won

two international Operational Excellence

awards and the silver certificate in the Volvo

Partnership Monitor programme.

The Dealer of the Year award was

presented to FAMCO’s Managing Director

Paul Floyd at the recent Volvo Construction

Equipment International Dealer Conference in

Abu Dhabi, timed to coincide with the Volvo

Ocean Race stopover.

Volvo Construction Equipment is

distributed in more than 100 countries

throughout Europe, North and South

America, Africa, the Middle East and

Asia. FAMCO was successfully critiqued

on dealership performance and image,

sales development, targeted marketing,

procedures and systems, investment

capabilities, staff capability and product

knowledge, superior customer service and

satisfaction as well as spare parts availability.

The full market introduction of all Volvo

CE’s soft products such as the ‘CareTrack’

remote monitoring system and machine

inspection programmes among others has

further established FAMCO as providers of

benchmarking service and product support.

FAMCO’s Managing Director Paul Floyd (2nd from L) received the award from Volvo Construction Equipment

February 2012 I 17

LOG. WINDOW

Setting standards of excellence in rail The Middle East Rail Awards has chosen

winners from across the region. The

ceremony in Dubai brought together top

rail executives to recognise and celebrate

companies and individuals who have

demonstrated an ability to succeed and set

standards of excellence. The annual awards

run in parallel with the Middle East Rail

Conference and Exhibition.

Laura Parker, General Manager of Middle

East Rail at Terrapinn, organiser of both the

conference and the awards ceremony said,

“Nominations to this year’s awards truly

reflected the continued drive, development

and growth of the region’s rail industry. We

celebrated with the people who have created

and shaped this dynamic and exciting industry.”

HE Eng. Abdulla Salem Al Katheeri,

Executive Director of the National Transport

Authority presented eight awards. HE

Mattar Al Tayer, Chairman of the Board and

Executive Director of the Roads and Transport

Authority (RTA), was awarded Rail Visionary

of the Year.

The Road and Transport Authority

scooped ‘Rail Project of the Year’ for the

Dubai Metro - Red and Green Lines. ‘Best

Rail Operator’ was won by Serco Middle East.

Voestalpine were rewarded for their leading

innovative technologies that continually

enhance rail projects and passenger

experience and were awarded ‘Most

Innovative Use of Technology’.

‘Best Communications Provider to the Rail

Industry’ was won by Kapsch CarrierCom.

‘Special Merit Award for Commitment to the

Environment’ was presented to Adnan Al

Hammadi, CEO of the Roads and Transport

Authority (RTA). Thales won ‘Best Service

Provider to the Rail Industry’. ‘Special

Recognition for Outstanding Contribution

to the Rail Industry’ was won this year by

Bassam Mansour, Land Transport Sector,

National Transport Authority.

Geodis Wilson wins Liebherr business

Winners of the Middle East rail awards 2012

• Best Communications Provider to the Rail Industry: Kapsch CarrierCom AG

• Best Rail Operator: Serco Middle East

• Best Service Provider to the Rail Industry: Thales

• Most Innovative Use of Technology: Voestalpine VAE GmbH - SST GmbH

• Rail Visionary of the Year: H.E Mattar Al Tayer, RTA

• Rail Project of the Year: Dubai Metro - Red and Green Lines

• Special Recognition for Outstanding Contribution to the Rail Industry: Bassam Mansour, NTA

• Special Merit Award for Commitment to the Environment: Dubai Metro, RTA

Geodis Wilson, a leading global

freight management company with its

regional headquarters in Dubai, has

recently announced that it has signed

an agreement with Liebherr (LBH Gulf

Distribution) to provide end-to-end supply

chain and logistics solutions in the United

Arab Emirates.

As part of the contract, Geodis Wilson

will provide the client, exclusive distributor

of Liebherr fridges, all embracing supply

chain solution from door to warehouse,

storage and distribution within the UAE and

re-export to CIS countries. The contract

is valid for a year with the possibility of

extending it for another year.

On the other side of the globe, Geodis

Wilson has been chosen as the best Third

Party Logistics (3PL) company at the Vietnam

Supply Chain Awards. The award decision

was based on criteria such as the company’s

growth rate, level of customer satisfaction

achieved, innovative use of technology

and IT, ability to adapt to customer needs,

environmental track record, and commitment

to training and investment.

The Vietnam Supply Chain Award

program aims to encourage continuous

improvement of supply chain management

knowledge and best practice in different

areas. It recognizes outstanding

corporations but also individuals who have

demonstrated innovation and expertise in

the area of supply chain management and

logistics. This year’s award ceremony took

place in Ho Chi Minh City.

I February 201218

LOG. WINDOW

Almajdouie moves world’s largest evaporator

Royal Jet expands capability for Medevac missions

Almajdouie, the Project Logistics and

Supply Chain Company, has recently moved

the world’s largest evaporator and the

heaviest load ever moved in the Middle East.

In size, it is equivalent to a football field and

with an assumed weight of 5,000 cars, as it

measures almost 124 m long, 34 m in width

and 12 m in height, with weight of 4891 tonnes.

In 2010, Almajdouie transported six units

of evaporators for Shuwaihat, S2 IWPP

Project, Abu Dhabi UAE, which measured

length of 104.7 x widths 31.4 x Height of 11

m and it weighs in total 4,600 tonnes. By

moving this evaporator, Almajdouie broke

its previous record as this evaporator

weighs a total of 4,891 tonnes.

Almajdouie used Self Propelled

Modular Trailer (SPMT) 172 axle lines, 688

double width tires with a capacity of 6,680

tonnes to carry 4,891 tonnes. This include

months of preparation for planning and

engineering, trailer computation based on

shipping drawing, site survey, planning route

simulations to move this huge unit from Ras al

Khair Jetty to the foundation. Almajdouie will

be moving a total eight evaporators and from

this, the first evaporator is already on site.

This challenging operation was executed by

a team of highly professional experts.

The core contractor Doosan won the

order for the plant project for US$1.76 billion

from Saline Water Conversion Corporation

(SWCC) in the Kingdom of Saudi Arabia,

where Almajdouie was awarded for the

overall on-shore activities for the World

Largest Evaporator built by Doosan Heavy

Industries of Korea. The next evaporator is

expected in February 2012.

Pan Emirates partners with Barloworld Logistics

PAN Emirates has partnered with

Barloworld Logistics to optimise their inbound

and outbound distribution. Abdul Rehman Al

Shamsi, Chairman of PAN Emirates and Steve

Ford, Group CEO of Barloworld Logistics,

signed and exchanged agreements to this

effect last month. PAN Emirates offers various

ranges of furniture in the UAE and across the

GCC for over 20 years.

Mohammed Katawala, the Group Finance

Director of PAN Emirates said, “We are in the

process of an aggressive growth strategy in

the GCC and recognised the need to align

our Supply Chain strategy to our business

strategy. Supply Chain costs form a big part

of the final product cost, and if not managed

properly, could prevent us from achieving

our goals and ultimately put the business

at risk. We wanted to have an expert look

at our supply chain holistically to optimize it

and align it to our business needs”.

“We have chosen Barloworld Logistics

as our partner with the objective of

improving operational efficiency and service

excellence in our logistics and distribution

facilities. By focusing on this aspect of our

retail business, PAN Emirates will stand out

and perform more effectively in today’s

highly competitive market,” he added.

Royal Jet, the first company in the

Middle East to have been granted

a commercial licence to provide

medical evacuation services, has

further enhanced its capability to

meet the steady growth and demand

for Medevac services. The company

has taken steps aimed at providing

further capacity and flexibility as well as

ensuring availability of aircraft and its

full range of reliable and dependable

Medevac services.

“Being one of only a few Medevac-

operators worldwide that cover the

full range of cabin sizes, Royal Jet

has clearly established its leadership

role in the air ambulance market. And

performed over 1310 missions,” said

Shane O’Hare, President and CEO of

Royal Jet.

Royal Jet’s Air Ambulances are

equipped with onboard medical

equipment and technologies including

an Intensive Care Unit (ICU), ventilators,

and even incubators for neo-natal

requirements. Manned and operated by

an in-house medical team consisting of

a doctor and a paramedic, Royal Jet’s

Medevac missions provide bed-to-bed

service starting from any medical facility

where a patient may be coming from to

the next medical facility or hospital that

the patient is destined to go to.

Royal Jet’s medical team includes

medical specialists who have been

selected in accordance with patients’

needs and requirements, and are all

capable of providing medical care and

attention due to their specialist training

in Aeromedicine – a specialty on its

own which is absolutely necessary to

be part of any Medevac mission.

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I February 201220

LOG. WINDOW

Etihad Crystal Cargo grows 18 per cent

Etihad Crystal Cargo carried 310,000

tonnes in 2011, 46,875 tonnes or 18 per

cent more than in 2010. Meanwhile Etihad

Airways carried 8.29 million passengers,

a 17 per cent increase on the previous

year. The jump represented an extra 1.197

million passengers on the carrier’s global

network covering 82 passenger and

cargo destinations.

“This result, achieved while much of the

world was still very much in the economic

doldrums and oil prices remained high,

is testament to our emergence as a

formidable force in the international aviation

arena,” Etihad Airways President and Chief

Executive Officer, James Hogan, said.

These were to Bangalore, the Maldives,

the Seychelles, Chengdu, Dusseldorf,

Tripoli, Shanghai and Nairobi. Etihad

Airways’ busiest route was Bangkok with

the airline carrying more than 500,000

passengers to the Thai capital during the

year. This was closely followed by London

(479,000), Manila (446,000), and Jeddah

(289,000) which represented a staggering

48 per cent increase over 2010.

“In cargo, the strongest growth was seen

out of Europe as exports from markets such

as Germany and Italy held firm during a

challenging back half of the year,” Mr Hogan

said.

“We launched freighter services into

Amsterdam, Cairo, Djibouti, Kabul and

Kandahar during the year, increased

operations to our key markets of China and

India while growing Johannesburg by up to

three freighters a week.”

Emirates SkyCargo expands African network

Emirates SkyCargo has bolstered its

operations on the Africa trade route. The

airline’s weekly cargo capacity into and

out of the continent will be over 6,000

tonnes after the launch of flights to Lusaka

and Harare on 1st February. The addition

of flights to the capitals of Zambia and

Zimbabwe comes less than three months

after the launch of a dedicated weekly

freighter to Accra and Lome and means

Emirates SkyCargo now has a total annual

capacity of more than 300,000 tonnes.

The two new gateways mean Emirates

SkyCargo can connect businesses in 22

countries across Africa to its network of

more than 100 destinations. The Dubai-

Lusaka-Harare service will be operated

five times a week by an A330-200,

providing a total weekly cargo capacity of

up to 160 tonnes.

“While many regions are experiencing

challenging economic conditions, Africa –

with a population in excess of one billion

and rich in natural resources - is one of

the few areas to record growth and the

long-term outlook is very positive,” said Ram

Menen, Emirates’ Divisional Senior Vice

President Cargo. “We expect demand to be

strong for a variety of commodities going

into and out of Lusaka and Harare.”

Aramex reports 18 per cent revenue increase

Aramex announced its financial

results for the fourth quarter of 2011,

as well as its consolidated financial

results for the 12-month period ending

December 31, 2011. The company’s net

profits for the fourth quarter of 2011

rose to AED 57.2 million, up from AED

55 million in the corresponding period

of 2010, representing an increase of 4

per cent. In the fourth quarter of 2011,

Aramex’s revenues rose to AED 682

million, up 18 per cent compared to

AED 580 million in the fourth quarter

of 2010.

“While revenues recorded significant

growth due to strong economic growth

in the Gulf Cooperation Council (GCC)

countries, particularly in the Kingdom

of Saudi Arabia and the United Arab

Emirates, and the diversification of our

operations into new emerging markets,

our net profits recorded modest growth

due to high fuel prices, increase in

overheads, initial investments in our

Greenfield operations in Africa, and

political instability in some countries,”

said Fadi Ghandour, Aramex’s Founder

and CEO.

Ghandour also stated that uncertainty

remains over the outlook for 2012 in

light of the global economic slump,

sluggish global trade and the continuing

instability in the Middle East region.

For the 12 months ending December

31, 2011, Aramex reported full-year net

profits of AED 211.5 million, an increase

of 4 per cent compared to AED 204

million in 2010. During the same period,

the company’s revenues reached AED

2,576 million, up 16 per cent compared

to AED 2,212 million in the previous year.

February 2012 I 21

Cargo contracts in 2011 – IATA The International Air Transport

Association (IATA) reported that full year

2011 passenger demand rose 5.9pc

compared to 2010, in line with long-term

growth trends. In contrast, cargo markets

contracted by 0.7pc for the year; but

recorded positive demand growth in

December of 0.2pc. Growth in demand

lagged capacity increases at 6.3pc

(passenger) and 4.1pc (cargo) putting

downward pressure on load factors. The

average passenger load factor for 2011 was

78.1pc, down from 78.3pc in 2010, while the

freight load factor was just 45.9pc, down

from 48.1% in 2010.

“Given the weak conditions in Western

economies the passenger market held up

well in 2011. But overall 2011 was a year

of contrasts. Healthy passenger growth,

primarily in the first half of the year, was

offset by a declining cargo market. Cautious

improving business confidence is good

news. But 2012 is still going to be a tough

year,” said Tony Tyler, IATA’s Director

General and CEO.

On international passenger figures,

Middle Eastern carriers’ traffic rose 8.9pc for

the year, against a 9.7pc climb in capacity,

putting pressure on load factors, which at

75.4pc, was the lowest except for Africa.

However, December ended on a more

positive note, with traffic up 11.7pc against

an 11pc rise in capacity and a load factor of

77.1pc. Airlines in this region have slowed

the pace at which they have expanded

but price competitive products and

geographically well-positioned hubs are

enabling Middle East carriers to continue to

improve their share of long-haul markets.

Air freight markets turned up at the end

of the year after shrinking through much

of the summer and autumn as business

confidence across major economies, and

export orders, slumped. Surveys are now

showing that business confidence, a leading

indicator for changes in cargo markets,

turned up in December, suggesting that

industrial production and international trade

may be stabilizing.

Although international freight markets

contracted 0.6pc for the full year and 0.8pc

in December, compared to a year ago,

December international demand was 1.5pc

ahead of the level in November, while

domestic demand was up 3.2pc compared

to November and 5.5pc compared to

December 2010. Freight load factors

declined considerably to 45.9pc in 2011, as

measures to match capacity with demand

by reducing the freighter fleet have been

offset by introduction of new twin aisle

passenger aircraft.

WFP joins forces with logistics companiesHumanitarian organizations and the

world’s leading logistics companies

have teamed up to conduct the first in a

series of assessments to help countries

strengthen their ability to respond to

emergencies. A.P. Moller-Maersk and

UPS joined the Logistics Cluster, led

by the UN World Food Programme

(WFP), to undertake a Logistics Capacity

Assessment in Nigeria, which focused on

potential natural disasters and pandemics.

Future assessments around the world will

build on the results of this pilot project.

The Logistics Capacity Assessment

examined standard logistics components

such as roads, bridges, ports and airports,

as well as issues such as milling capacity,

quarantine procedures and telecoms

infrastructure. The assessment also

mapped out disaster contingency plans,

including for the movement of goods and

supplies into and throughout the country.

The lessons learned from these scenarios

could be life-saving in the case of a

disaster or pandemic.

The Logistics Cluster, comprised of

representatives from UN agencies and

non-governmental organizations, acts a

coordination mechanism for the logistical

response during emergencies. A.P. Moller-

Maersk and UPS, along with TNT Express

and Agility, are members of the Logistics

Emergency Teams (LETs), a cross-company

partnership that supports humanitarian

relief efforts during natural disasters.

“Preparation is key to a country’s ability

to manage disasters of any kind,” said

Eduardo Martinez, LET chair and UPS

director of philanthropy and corporate

relations. “With the data from the

assessments, emergency responders will

be better able to assess and manage the

flow of goods to those in need.”

By providing the Logistics Cluster with

airlifts of supplies and equipment, the

LETs enabled the humanitarian community

to reach those in need more quickly and

efficiently. The LETs also assisted WFP’s

relief support to the Government of Japan

following the April 2011 tsunami. Although

WFP does not have any humanitarian

operations in Nigeria, it supports the

government in the fields of logistics and

emergency preparedness.

LOG. WINDOW

Tony Tyler, IATA Director General and CEO

I February 201222

LOG. WINDOW

DP World grows container volumes 10 per cent in 2011

Cargo growth steady at DWC

Global marine terminal operator DP

World announced over 54.7 million TEU

(twenty-foot equivalent container units)

were handled across its global portfolio in

2011, an increase of 10 per cent against the

prior year. Like for like volume growth was

equally strong at 9 per cent.

The growth across its portfolio was

driven by a strong performance in the UAE

region which delivered volume growth of

12 per cent handling 13.0 million TEU for

the year. The UAE region as well as Asia

Pacific, Africa and the Americas region

together with the addition of new capacity

in Karachi, Pakistan and Vallarpadam,

India both of which opened in early 2011

contributed to the growth.

Chairman, Sultan Ahmed Bin Sulayem

commented: “DP World delivered another

strong performance in the final quarter

of the year despite the macro economic

uncertainty. These results are a reflection of

our continued focus on those regions which

are seeing strong trade growth in addition to

the continued focus by all our terminals on

providing customers with a first class service

when they call at DP World terminals.

“Whilst uncertainty continues to affect

the global economy, our business is still

performing well. We made good progress

through the fourth quarter of 2011 and we

will achieve 2011 full year EBITDA in line

with expectations. Lower than expected net

financing charges will benefit reported profit

before tax.”

DMCA establishes cruise ship task force

Dubai Maritime City Authority (DMCA), the

maritime government entity charged with

regulating, coordinating and supervising the

maritime sector in Dubai, has announced

the establishment of a cruise ship task force

in line with its continued efforts to ensure

the safety of cruise ships arriving in the

emirate and to reinforce preparedness to

deal with potential maritime accidents. The

cruise ship task force has been established

in collaboration with Dubai Tourism &

Commerce Marketing (DTCM).

DMCA further revealed that it is

intensifying maritime inspections to ensure

that cruise ships comply with maritime

standards and to create awareness among

ship owners and cruise operators about

the need to improve the performance of

cruise ships according to best practices in

the industry.

DMCA is cooperating with the Ports

Police, Civil Defense, Dubai Ports Security,

Customs Security and Free Zones

Security, ship agencies, DP World and the

National Authority for the Management of

Emergencies and Crises to strictly enforce

the maritime regulations. Moreover, DMCA

has ordered all cruise ships to carry out

evacuation exercises before leaving the city

to ensure that the crew is fully prepared in

case of accidents.

Dubai Airports announced traffic

statistics for Dubai World Central (DWC)

that showed the airport handled 89,729

tonnes of air freight during its first full

calendar year of operations. Last year,

DWC’s average monthly air cargo volumes

totalled 7,477 tonnes compared to 795

tonnes per month recorded during the

airport’s first half year of operations in

2010. Cargo transit traffic comprised

32,989 tonnes or 37 per cent of volume.

“Although the airport is in its infancy,

incremental cargo traffic growth has been

steady and continues to ramp up as new

operations are launched,” Dubai Airports

CEO Paul Griffiths said.

Aircraft movements for the year came

in at 8,198 of which 3,609 (44 per cent)

were commercial cargo flights, 4,548 (55.5

per cent) were test and training flights and

41 (0.5 per cent) were general aviation

operations. During 2011, 36 airlines

operated into DWC, predominantly as

cargo charter operations.

“Sea to air freight traffic growth

was particularly robust as airlines took

advantage of the airport’s bonded link to

the Jebel Ali port. Additionally the road

feeder service operating between Dubai

International and DWC facilitated the

smooth flow of transit airfreight. Combined,

Dubai’s two airports handled 2,279,219

tonnes of airfreight in 2011, which is up

marginally from 2010,” Griffiths said.

A safety drill conducted at a cruise ship visiting Dubai

February 2012 I 23

RAK Airport appoints ground handling company

LOG. WINDOW

Skycity welcomes first customers to Abu Dhabi free zone

Skycity, the subsidiary of Abu Dhabi

Airports Company (ADAC) responsible

for developing and operating Abu Dhabi

Airports Free Zone, has started to welcome

its first customers to Abu Dhabi Airport

Logistics Park’s first phase, which currently

holds 100 warehouses.

The second phase is being

commissioned to offer storage,

warehousing and light industrial units, as

well as plots of land for development. The

Logistics Park is the first among a series of

commercial districts currently being planned

in close proximity to the airport, with every

district offering a unique set of products,

services and amenities, catering to the

targeted business segments and activities.

The Logistics Park accommodates a

variety of businesses including aviation,

logistics, freight, IT, electronics, light

industries and cold storage. Expo Freight

Services Company LLC, 3W Networks

LLC, and International Precious Metal

Refiners (IPMR) are among the first twenty

two companies to receive their keys and

start their fit-out works, aiming to be fully

operational by March 2012.

Commenting on the announcement,

Ibrahim Al Khuroosi, Senior Manager

Government Relations at ADAC,

said: “Airports across the world have

developed extensive airport city and

Free Zone programs that attract foreign

direct investments and deliver billions

in trade turnover, thus boosting airports’

non-aeronautical revenues, as well as

significantly contributing to the local

economies. Similarly, the creation of Abu

Dhabi Airport Free Zone was part of

an initiative launched by ADAC, aiming

to attract and support private sector

involvement. Companies in the Logistics

Park will use the Abu Dhabi Airport Free

Zone as their base and hub to access and

service the global markets, as Abu Dhabi

enjoys a strong edge both geographically

and strategically.”

Skycity will also provide customers with

a full spectrum of Free Zone services such

as company registration, licensing, leasing

and rapid visa processing for employees

in a “One-Stop-Shop” environment.

Companies choosing to set up at any

of ADAC’s free zone districts also will

enjoy duties and tax exemptions, foreign

ownership, repatriation of capital and

profits, and other benefits traditionally

offered at any Free Zone setup.

RAK International Airport has

announced it has awarded a ground

handling operations contract to National

Aviation Services (NAS), marking a first

of its kind agreement for an airport in

the UAE. Under the terms of the contract

NAS will provide RAK International Airport

with a comprehensive ground handling

service which will include ramp handling

in addition to check-in, arrival, transit

and cargo services. Pearl Assist, NAS’s

worldwide network of lounge and meet

and assist services will be available at RAK

International Airport.

Andrew Gower, Airport Director RAK

International Airport, said, “With the rapid

growth forecast for RAK International

Airport, it is important that we focus our

efforts on operating the airport as a

business not a service. Outsourcing ground

handling is a vital part of our on-going

development plan.”

Gower added, “It was essential to

find the right service partner that not

only shares our vision and commitment

to service, but equally believes in the

potential of Ras Al Khaimah. NAS has a

proven track record and reputation in the

industry and their overall approach and

refreshing attitude to change made them

the ideal partner.”

Headquartered in Kuwait, NAS is an aviation

services provider with a regional presence that

serves airlines and airports worldwide.

Andrew Gower, Airport Director, RAK International Airport

I February 201224

TRENDS

1.702.582,88Tonnes

942.828,01Tonnes

1.171.067,57Tonnes

823.192,57Tonnes

383.195,88Tonnes

458.330,64Tonnes

125.025,95Tonnes

575.612,05Tonnes

1.877.584,65Tonnes

1.349.262,90Tonnes

409.428,99Tonnes

363.894,03Tonnes

815.776,23Tonnes

433.262,68Tonnes

1,1Mln TEU

2,4Mln TEU

0,2Mln TEU

0,5Mln TEU

1,2Mln TEU

1,9Mln TEU

1,2Mln TEU

2,5Mln TEU

1,2Mln TEU

2,1Mln TEU

1,8Mln TEU

2,4Mln TEU

1,6Mln TEU

1,4Mln TEU

24,4Mln TEU

10,1Mln TEU

7,3Mln TEU

14,6Mln TEU

One Way

Round Trip

Outward

Inward

Air freight Flow of goods globally 2010

Container �ows worldwide 2010

Sea Freight

Africa

Asia

Africa

North America

Africa

Africa

South Asia / Ocenia

Asia

Latin America

Asia

Latin America

North America

Latin America

Europe

Far East

Europa

Far East

North America

Asia / Paci�c

North America

Europe

North America

Africa

Europe

Near/Middle East

Europe

Asia / Paci�c

Europe

Europe

South America

South America

North America

12 t1 TEU

Value sea freight / ton: US$5,800

1 TEU equals approx. 12 tonnes

1 kg of air freight costs US$1 to US$1,5

Percentage of shipping containers on global cargo tra�c

Share of air cargo on global volume of goods

Volume distribution of commodity �ows Transport prices in comparisonWeight / Value ratio

2 %70 %

1 kgUS$1

to US$1,5US$0,01

to US$0,10

1 kg of sea freight costs US$0,01 to US$0,10

1 kg

Sea Freight

6 t

Value air freight / ton: US$100,000

One box corresponds to 6 tonnes

Air Freight

Illustration: LOG.Kompass Sources: ISL and various associations

February 2012 I 25

TRENDS

1.702.582,88Tonnes

942.828,01Tonnes

1.171.067,57Tonnes

823.192,57Tonnes

383.195,88Tonnes

458.330,64Tonnes

125.025,95Tonnes

575.612,05Tonnes

1.877.584,65Tonnes

1.349.262,90Tonnes

409.428,99Tonnes

363.894,03Tonnes

815.776,23Tonnes

433.262,68Tonnes

1,1Mln TEU

2,4Mln TEU

0,2Mln TEU

0,5Mln TEU

1,2Mln TEU

1,9Mln TEU

1,2Mln TEU

2,5Mln TEU

1,2Mln TEU

2,1Mln TEU

1,8Mln TEU

2,4Mln TEU

1,6Mln TEU

1,4Mln TEU

24,4Mln TEU

10,1Mln TEU

7,3Mln TEU

14,6Mln TEU

One Way

Round Trip

Outward

Inward

Air freight Flow of goods globally 2010

Container �ows worldwide 2010

Sea Freight

Africa

Asia

Africa

North America

Africa

Africa

South Asia / Ocenia

Asia

Latin America

Asia

Latin America

North America

Latin America

Europe

Far East

Europa

Far East

North America

Asia / Paci�c

North America

Europe

North America

Africa

Europe

Near/Middle East

Europe

Asia / Paci�c

Europe

Europe

South America

South America

North America

12 t1 TEU

Value sea freight / ton: US$5,800

1 TEU equals approx. 12 tonnes

1 kg of air freight costs US$1 to US$1,5

Percentage of shipping containers on global cargo tra�c

Share of air cargo on global volume of goods

Volume distribution of commodity �ows Transport prices in comparisonWeight / Value ratio

2 %70 %

1 kgUS$1

to US$1,5US$0,01

to US$0,10

1 kg of sea freight costs US$0,01 to US$0,10

1 kg

Sea Freight

6 t

Value air freight / ton: US$100,000

One box corresponds to 6 tonnes

Air Freight

Illustration: LOG.Kompass Sources: ISL and various associations

Global Tradecontinued on next page

I February 201226

TRENDS

The statistics, to an extent, show that world

trade is stabilising since the onset of the

recent global economic crisis that has left

no nation untouched. The balances of

power have also shifted towards the East

as developed nations still struggle with

their own crises. In an era where economies

need to manufacture more and sell fast to

other countries, we tend to hear more about

global trade partners, major sea and air

freight routes as well as shipping costs.

The illustration on the previous page clearly

compares air and sea freight, trading between

countries and continents, share of shipping

containers and air cargo in global trade, and

transport prices. As each business has own

requirements, priorities and budgets, it is up

to the each company to decide the best way

to ship their items. Air cargo may be the best

option for items that are high in value but

have a low weight, such as computer chips.

On the other hand, bulky items may find their

places in ships cruising oceans. Sometimes, a

combination of air, sea and road transportation

offers the most feasible solution.

Leaving the interpretation of the

illustration to our readers, we would

like to quote a useful report by

PricewaterhouseCoopers International

Limited (PwC) titled “Future of World Trade –

Top 25 sea and air freight routes 2030”. The

economists at PwC used bespoke modelling

techniques to project bilateral trade,

requiring either sea or air freight, between

29 economies over the next two decades.

They found that:

• China will overtake the US and

dominate global trade in 2030, featuring

in 17 of the top 25 bilateral sea and air

freight trade routes

• Four key areas to potentially present

significant opportunities for transport and

logistics firms over the period:

o Trade within the Asia-Pacific region;

o Trade between emerging and

developed economies;

o Trade between emerging economies; and

o Trade between China and Africa

• Challenges and opportunities for transport

& logistics companies include:

o Executing cross border transactions;

o Recruiting and retaining the best talent

and skills;

o Mitigating corruption risks; and

o Understanding the tax environment

The report highlights that the world

economy has exported over a quarter of its

merchandise output in 2008, up from 17 per

cent in 1980. Economies have become more

interdependent and the IT revolution has

brought buyers and sellers from around the

globe closer together. The patterns of global

trade have also shifted noticeably over the

last twenty years.

The experts claim that by 2030, the

world economy will look quite different, with

emerging and developing economies making

up a significant share of global output. This will

undoubtedly affect global trade volumes and

flows. Transport and logistics companies will

need to adapt to the change in trade patterns to

ensure they maximise their profit opportunities.

Planning for the trends that will shape

the trade landscape over the next 20 years

would be of benefit for a company in this

highly globalised marketplace. The report

also predicts that new transport corridors will

emerge, especially between Asia and Africa,

Asia and South America, as well as Intra-Asian.

Source of data & charts: PwC

Source: IMF

Source: IMF

Chart 1: The evolution of global trade

Chart 2: 2009 distribution of world merchandise exports by exporting country/region

The 3rd InternationalTRANSPORTATION, MATERIALS HANDLING, WAREHOUSING & LOGISTICSExhibition & Conference

www.sauditranstec.com

11-13 November 2012Dhahran International Exhibition Center,

Dammam, Kingdom of Saudi Arabia

Working Towards the Integration& Implementation ofEffective Logistics& Transportation Systems

Organised by

Media Partner

I February 201228

OVERVIEW

On track for growthAlgeria, one of the developing countries in North Africa has been pushing ahead with vital infrastructure projects to help its economy grow further. Algiers metro system was launched in November 2011 and with the metro in Cairo, it is the only heavy metro system in Africa. When fully functional, the system is expected to ease traffic bottlenecks in the capital, offer an alternative mode of transport and at the same time contribute to a green environment.

February 2012 I 29

OVERVIEW

The first line of the Algiers metro system

was successfully launched on 1 November

2011. RATP Dev, a subsidiary of the RATP

Group, made a major contribution to the

culmination of this large-scale project,

which the Algerians have eagerly awaited.

The 9-km long line makes Algiers the first

city in the Maghreb to boast a metro. With

the metro in Cairo, it is the only heavy metro

system on the entire African continent.

RATP Dev was selected in 2007 by

Entreprise du Métro d’Alger (EMA) to run

and maintain Algiers’ first metro line and has

provided its experience as a multi-modal

operator along with its ability to train operating

staff. In 2009, RATP Dev set up a local

subsidiary, RATP El Djazaïr. The subsidiary has

first completed by pre-operations phase and

runs and maintains Line 1 for an eight-year

term since 1 November. The metro already

carried one million passengers during the first

month of operation.

The metro’s 14 trains with six air-

conditioned carriages will be stopping at ten

stations and catering to six municipalities:

Bachdjarah, El Magharia, Hussein Dey, El

Hamma, Sidi M’Hamed and Algiers Centre.

The company is bringing expertise and

know-how to the Gulf countries and currently

active in the region through its partnership

with SAPTCO for the operation of future light

rail and metro networks in Saudi Arabia. It

was also nominated a “preferred bidder”

for the Dubai-based Al Sufouh Light Railway

operating contract.

Ready to move

Through its RATP El Djazaïr subsidiary, RATP

Dev has developed its operating program

and procedures along with regulations

and maintenance policy. The company has

conducted all its technical trials and given

the green light for static equipment, energy

supply, signage and rolling stock.

At the same time, RATP Dev has

I February 201230

OVERVIEW

reasserted its ability to tap into the know-

how of the RATP Group and adapt to local

situations. Own experts were called in to

recruit and train local staff in regulatory

procedures and tasks required to operate

and maintain a metro line. It has also ensured

almost 500 new jobs in the country.

RATP El Djazaïr tested its two-fold

technical and training expertise in the dry-run

phase prior to the entry into service. During

this “test” phase in which trains ran without

passengers, a hundred or so operational

exercises were conducted not only to test

the system in full and prepare facilities to

welcome passengers, but also to round out

staff training with concrete situations.

A communication campaign was

developed jointly by EMA, RATP El Djazaïr

and the construction consortium to help

prepare future passengers and inform

the local population ahead of the entry

into service. Open days were held in four

stations; a teaching kit was designed for

distribution to children in schools and short

programs were broadcast on television

channels to explain how the metro operates.

Overcoming challenges

Operation and maintenance of the first line in

the Algiers metro system will be ensured for

eight years. The 400 employees in RATP El

Djazaïr have welcomed the first passengers and

put into practice all the skills they had acquired

and tested in the last few months, including train

driving supervision, traffic management, station

reception, ticket sales, verification of operating

procedures and manoeuvres, etc.

Services will run from 5 am to 11 pm with

wait times of 3 minutes and 20 seconds at

peak times, five minutes in off-peak times.

Circulation management will be ensured

thanks to the PCC (central control room),

the heart of the system located on the line.

The PCC manages train movements, traffic

regulation, station and facility surveillance

and energy controls. At the same time, a

hundred employees of service provider

companies will be working to clean trains

and stations and to guard facilities.

Staff training

According to RATP El Djazaïr, 86 per cent of

operating staff are under the age of 35 and

98.5 per cent of staff will be Algerian. Over

500 direct or indirect jobs are created in

addition to the 400 police officers for safety.

Training was provided by 20 Algerian

trainers with engineer qualifications and

preliminary training from French experts,

which corresponded to 80 hours of

theoretical training per agent. During the

non-commercial operation phase, 320 hours

of practical training per agent was recorded.

Furthermore, ten RATP experts extended

daily support during the non-commercial

operation phase. Training was provided for

ten job types and further education is to

ensure skills and knowledge are maintained

for safety and security-related jobs.

Key Dates:

The idea of providing Algiers with an

underground metro system was first mooted

at the end of the 1950s, although the project

was launched only in 1981.

• 1982-1985: Preliminary design and

feasibility studies. A 1,000-m long

reconnaissance tunnel was dug between

Grande Poste and Khelifa Boukhalfa.

• 1986-1990: The slump in the energy market

plunged oil-producing countries including

Algeria into a recession, which postponed

the projected Algiers metro.

• 1990s: 3.5 km of tunnel, six stations and

depot-workshop buildings were constructed

The metro’s 14 trains with six air-conditioned carriages will be stopping at ten stations and catering to six municipalities: Bachdjarah, El Magharia, Hussein Dey, El Hamma, Sidi M’Hamed and Algiers Centre

February 2012 I 31

OVERVIEW

by the Algerian companies Cosider,

Génisider, Batimetal and Engoa.

• 2003: The project was relaunched, leading

to the completion of a 4.1-km section (Hamma

to Haï El Badr) by the Algerian-German

consortium GAMMA over 40 months.

• 2005: Signature of the contract to building

the transport system with the SVC grouping.

• 2007: RATP Dev was selected to run the

Algiers metro. Rail way was launched and

equipment manufactured by the SVC grouping.

• 2008: Acceptance of the first two metro trains.

• 2009: All trains were received and system

trials launched.

• 8 September 2011: Launch of non-

commercial operation by the operator, RATP

El Djazaïr.

• 31 October 2011: Inauguration of the Algiers

metro system.

Line 1 Technical Characteristics:

• Line 1 step 1 = 10 stations

• Nine underground stations with lateral

platforms

• Terminus at Haï el Badr on the surface with

three rails and two central platforms

• Line length: 8,500 m

• Iron rolling

• Electricity supply through the third rail

• Automatic driving with driver

• One depot (Bach Djerah) at the end of the line

• One central control station (El Anasser) at

the centre of the line

• Single-tube, dual-rail tunnel

Rolling Stock Characteristics:

• 14 trains with six carriages

• Overall length: 108 m

• Width: 2.83 m

• Movement between carriages

• Eight doors per carriage (four each side)

• Capacity: 1,290 passengers

• 210 seated positions and + 1080 standing (6

p per sq. m)

• Maximum speed: 70 km/h

Project Parties:

Entreprise du Métro d’Alger (Delegated

contracting authority): In addition to its role

as the Algiers metro contracting authority,

EMA is also in charge of projects for the

Oran metro and the tramway projects for

Algiers, Oran and Constantine.

RATP El Djazaïr (Operator): RATP Dev

set up its RATP El Djazaïr subsidiary in

2009 to run the Algiers metro project.

RATP El Djazaïr is an Algerian joint stock

company whose purpose is to ensure the

commercial operation and maintenance of

the Algiers metro line 1.

RATP Group: As the fifth largest urban

transport operator worldwide, each

day the RATP group carries 12 million

passengers in various modes: metro

and automatic metro systems, regional

rail express network (RER), bus, coach,

tramway, and funicular and river shuttles.

The RATP group operates the largest

multi-modal network in the world run by

a single company in the greater Paris

region, which is used each day by over 10

million passengers.

RATP Dev: The operating subsidiary of

the RATP group set up in 2002 to export

the group’s know-how outside its base

of the greater Paris region. With 10,000

employees RATP Dev operates in over 30

towns and cities in France and in eleven

countries in Europe, North America, Asia

and Africa.

During the “test” phase in which trains ran without passengers, a hundred or so operational exercises were conducted not only to test the system in full and prepare facilities to welcome passengers, but also to round out staff training with concrete situations

I February 201232

PREVIEW

LOG. LEO Awards Ceremony Celebrating Industrial Excellence“Logistics - Excellence - Optimisation”

Organised by LOG. Middle East, the

region’s premier publication for the

logistics and supply chain industry, the

LOG.LEO Awards will once again recognise

the industry’s most outstanding achievers

across five main categories.

It is always a day to remember when

key industry players from the region gather

for the LOG.LEO Awards, supported by key

companies and organisations.The 2012

ceremony at a five star venue will be no

different. With all business circles looking

forward to a brighter year, the excitement

continues to build.

The experienced jury together with

the logistics community will vote online to

celebrate industrial excellence. Based on

February 2012 I 33

PREVIEW

the voting that will continue until the end of

March, the outstanding individuals will be

awarded in the following categories. The

winners of the first four categories will be

decided by online voting and the final award

for Lifetime Achievement will be selected by

our jury.

• Young Achiever of the Year

• Supply Chain Manager of the Year

• Innovator of the Year

• Sustainability Champion of the Year

• Lifetime Achievement Award

A spectacular finale: 2011

Looking back, the third edition of the LOG.

LEO Awards and Seminar, which was titled

‘Pursuing Excellence’ was held on 20

April 2011 in Dubai. The day-long event

had delegates and guests participate

wholeheartedly in the seminar and the

awards ceremony, which took place in

between the seminar at lunch time.

Among the award winners was Hamdi

Osman who won the Lifetime Achievement

award. Hamdi Osman joined FedEx in 1978

in New Jersey, USA. In 1991 he moved to

Dubai as Managing Director for Middle East

Operations. Then in 2007, he was promoted

to Sr. V. P. Ops for Europe, Middle East, Indian

Sub-Continent and Africa, and in 2010 as

Sr V.P. for Emerging Market, Middle East,

Indian Sub-Continent, Africa and Central Asia.

Hamdi has won many prestigious awards at

FedEx in recognition of his leadership and

distinguished performance in operations

management, sales and customer service.

As General Manager Logistics for GAC

Dubai, Phil Showering was singled out for his

energy and innovation in providing tailor-

made supply chain solutions to businesses

in the region. A British national, Showering

took over as GAC Dubai’s General Manager,

Logistics, in April 2008. Since then he has

since overseen several important projects

for the company, including consolidated

distribution in Dubai of multiple brands for

leading multinational corporations.

The Gold Sponsor: Dubai Trade

Lending their support as gold sponsor for

I February 201234

the event was Dubai Trade. Dubai Trade has

taken the responsibility of facilitating the trade

and logistics operations in Dubai to become

the world’s best practice model and present

Dubai as the number one choice for doing

business across the globe.

Dubai Trade Portal is Dubai Trade’s

single sign on, single window channel to the

online services of DP World, Dubai Customs,

Economic Zones World and Jebel Ali Free

Zone Authority, providing streamlined flow of

services designed around customer needs

and targeted at customer satisfaction.

Emotional moments

Previous years’ ceremonies also witnessed

emotional moments. When Brian Shepherd

was handed the envelope to announce the

winner of the LOG.LEO Lifetime Achievement

Award, he had no idea it was his name that

was inside. This was a surprise twist in the

ceremony, considering several VIP audience

members had already announced winners

of other categories, with no one expecting a

winner to announce himself.

A few tears filled Shepherd’s eyes as

he read out his own name. “I would like

to express my sincere thanks to you and

the committee for the wonderful honour

bestowed on me today,” he said later on. “I

am most humbled by the gesture and will

forever remember this day.”

Shepherd has been working in the

logistics industry since 1972. In 1998, he

left South Africa to join the Alshaya Group

in Kuwait as Head of Logistics. In 2003,

Shepherd joined Al Tayer and has helped

grow its logistics division from its beginnings

into a major player in the region. He recently

announced that he will be retiring from the

company within the next year.

That year, Kamel El-Ghossaini, Senior

Manager – Supply Chain Solutions, Span,

took home the LOG.LEO Young Achiever

of the Year award. El-Ghosseini has helped

develop the IT arm of the Span Group, which

in turn has helped advance expertise in

the region as a whole. More than a dozen

members of Span cheered him on at their

own private table.

Ram Menen, Divisional Senior Vice

President Cargo, Emirates, was the winner

of the LOG.LEO Innovator of the Year Award.

Menen is credited with not only developing

Emirates SkyCargo from its beginnings

but also helping to develop aircraft such

as the Boeing 777F and the Airbus A380

and inventing the LD36 container. He has

received a great deal of recognition within

the industry, but never for his innovations.

Time to nominate

Everyone in the industry is invited to submit

online nominations for the award categories.

Your nominations will ultimately decide the

winners at this year’s ceremony. More details

will be announced soon both in print and

online but please do not hesitate to contact

us for any further inquiries:

E: logleo@gutenberg-dubai.ae

T: +971 4 4334360

LOG. LEO 2011 Winners

Nourah MehyarCEO,Nafith Logistics, Jordan

Phil ShoweringGM Logistics, GAC, Dubai

Karl W FeilderChairman,The Neutral Group, Dubai

Dilip RahulanCEO & Chairman,Pacific Controls, Dubai

Hamdi OsmanFedEx

yOunG achIEvEr suppLy chaIn ManaGEr Of thE yEar

InnOvatOr Of thE yEar

sustaInabILIty chaMpIOn Of thE yEar

LIfEtIME achIEvEMEnt aWard

PREVIEW

February 2012 I 35

LOGISTICS EXCELLENCE OPTIMISATION

INVITATION TO NOMINATELOG.Middle East, the region’s premier publication for the logistics and supply chain

industry, has initiated the LOG.LEO Awards.

�e jury and logistics community – by web vote – are honouring outstanding individuals with the LOG.LEO Awards in the following categories:

Young Achiever of the YearSupply Chain Manager of the Year

Innovator of the YearSustainability Champion of the Year

Lifetime Achievement Award

LOG. Middle East once again invites you to LOG.LEO Awards 2012; a time to celebrate the best of the supply chain and logistics industry.

We kindly ask you to submit your nominations for above-mentioned categories no later

than 29 March 2012 as we name this year’s winners.

Date: 19 April 2012Venue: Ibn Battuta Gate Hotel, Dubai

Dress: Formal / National dress

For more information, please contact:logleo@gutenberg-dubai.com

Tel: +971 4 4334360

Looking forward to seeing you there!

AWARDS CEREMONY DETAILS:

I February 201236

PROFILE

Fueling growthAs air traffic increases steadily in the region, airport operators today are under pressure to offer better, timely and more efficient services to their clients. Aviation fuel logistics involves several players and requires expertise to transport, handle and deliver in a safe manner.

February 2012 I 37

PROFILE

Competing with each other to create

not only regional but also global

logistics hubs, the GCC governments

have launched several ambitious

infrastructure projects such as the Dubai

World Central in the UAE and New Doha

International Airport in Qatar. These

airports are not just designed as a place

where aircraft land and take off but as a

destination by itself with all components

that address business and social life.

Aircraft maintenance facilities, fuel

farms, cargo villages and warehousing

sectors together with business towers,

residential clusters and shopping

centres form what we call an ‘airport

city’ or aerotropolis today.

As air traffic increases steadily

especially in emerging markets, airport

operators feel more pressure today to

provide better, timely and more efficient

services to both passenger and cargo

aircraft landing in their territory. Airline

operators as well as other players at an

airport are well aware of the fact that

every delay in a flight due to several

reasons related to services would come

back as customer dissatisfaction, negative

publicity, and financial losses in addition

to possible fines by the authorities.

Leaving other components and services

of airports aside, this article talks about

aviation fuel, which includes safe

transportation, storage and delivery of this

special type of fuel to airplanes.

Civil jet fuels

Aviation turbine fuels are used for

powering jet and turbo-prop engine

aircraft. Generally, there are two main

grades of turbine fuel in use in civil

commercial aviation: Jet A-1 and Jet A

both being kerosene type fuels. There is

also Jet B which is a wide cut kerosene

and used in very cold climates.

Jet A-1 is a kerosene grade of fuel

suitable for most turbine engine aircraft

and widely available outside the USA.

Produced to an internationally agreed

standard, it has a flash point above 38°C

(100°F) and a freeze point maximum of

-47°C. On the other hand, Jet A is a similar

kerosene type of fuel, produced to an

ASTM specification and normally only

available in the USA. It has the same flash

point as Jet A-1 but a higher freeze point

maximum (-40°C).

Furthermore, there are certain aviation

fuel additives that are added to the fuel

in very small quantities to provide special

or improved qualities. The quantity to

be added is strictly controlled by the

appropriate specifications. Among the

most common ones are anti-knock

additives, anti-oxidants, static dissipater

additives, corrosion inhibitors, fuel system

icing inhibitors and metal de-activators.

Turning around the aircraft

To find out more about the aviation

fuel, LOG. Middle East has talked to

an expert in this field: Richard Jory,

General Manager, Shell Markets ME

Limited in Dubai, UAE. Asked what other

products they offer aside from fuel,

Mr. Jory said, “Similarly, our ability to

turn around the aircraft of our regional

customers such as Low Cost Carriers

is a focus for Shell Aviation, whilst we

also provide professional services to the

Business Aviation segment where we

offer a differentiated fuel, Shell AeroJet.

In terms of aviation lubricants, Shell

markets across the entire globe and

offers a complete portfolio of products

to our customers, covering microlights

to A380s.”

Shell has been a leader in innovation

and environment friendly products. Mr.

Jory provided some examples including

the fuel made from natural gas: “The

Middle East has traditionally produced

more jet fuel than it consumes. Hence,

product typically flows west to be

consumed in Europe. Despite continued

demand growth in the region, this trend is

unlikely to change in the near future. For

a major supplier of jet fuel to customers

in the region, what is important is to

have the ability to trade jet fuel and have

access to the right shipping infrastructure.

Shell is a major trader in the region and

is supported by a shipping department to

ensure the safe movement of product.”

Safety & efficiency

How do they make sure that safety is

100 per cent ensured at every stage

of delivery of flammable product? The

GM explained clearly that firstly, Shell

Aviation ensures their airport operations

across the whole globe, meet either

internal or local standards, whichever

“The Middle East has traditionally produced more jet fuel than it consumes. Hence, product typically flows west to be consumed in Europe. Despite continued demand growth in the region, this trend is unlikely to change in the near future”

Richard Jory, GM Shell Markets ME Ltd

In terms of greenhouse gas emissions, Shell has an R&D programme looking into low carbon jet fuel, but understands that obtaining approval for the next alternative fuel for aviation use will take some time.

I February 201238

PROFILE

is higher. It is no coincidence that

Shell Aviation was voted No.1 for the

10th consecutive year in the Armbrust

Aviation Survey Awards in the Technical/

Operations category.

“However, we are not complacent

and continue to work to improve

our engineering and operational

standards. Shell Aviation has a long

heritage in Research & Development

stretching back to the 1930s when we

developed Aviation Gasoline (avgas).

Since the start of the jet age, Shell has

constantly strived to improve efficiency

and standards which in turn provides

environmental benefits.

“In recent times, the launch of

AeroShell Ascender, the first next

generation turbine engine oil will enable

engines to run hotter and therefore

more efficiently. And very recently, the

groundbreaking GTL Jet Fuel flight has

shown that a new fuel can be used in

commercial aircraft bringing reductions

in emissions such as sulphur dioxide and

particulate (soot) that will improve local air

quality at airports where the fuel is used,”

Mr. Jory highlighted.

In terms of greenhouse gas emissions,

Shell has an R&D programme looking into

low carbon jet fuel, but understands that

obtaining approval for the next alternative

fuel for aviation use will take some time. In

the meantime, the company is helping its

customers with their CO2 challenges by

sharing Shell’s knowledge about Aviation

CO2 management.

“We can also sell bundled fuel, that is

jet fuel together with Certified Emission

Reduction units (CERs) corresponding to

Jet Fuel Price Monitor

20-Jan-12 Index* $/b cts/gal $/mt 1 week ago 1 month ago 1 year ago

New fuel price average for 2012 Impact on 2012 fuel bill

Sourced from Platts * 100 in 2000 (87 cts/gal)

Estimated by IATA

353.1 129.2

$129.5/b +$32 billion

307.6 1018.0 -0.3% 4.9% 15.4%

Percentage change vs.

Jet Fuel Pice

The index and price data shows the global average price paid at the refinery for aviation jet fuel.

Impact on this year’s fuel bill of the global airline industry:

“The Middle East has traditionally produced more jet fuel than it consumes. Hence, product typically flows west to be consumed in Europe. Despite continued demand growth in the region, this trend is unlikely to change in the near future”

partial or total CO2 emissions. However,

if the customer prefers we can also sell

to them CERs, or Voluntary Emissions

Reductions (VERs) via Shell Trading.”

Playing big

The Al Maktoum International Airport,

which is going to be the world’s largest

when completed, has started initially with

cargo operations. Though air traffic is

still low compared to Dubai International

Airport at the heart of town, the prospects

are bright and many major players in the

industry have shown interest to use the

airport especially for freight services.

More aircraft would mean more services

being required including aviation fuel.

“Shell Aviation supplies fuel to

customers at several airports across the

Middle East, including locations in the

UAE, Oman and Saudi Arabia. Regional

carriers value our presence in important

neighbouring markets such as India and

Pakistan, whilst the region’s mega-carriers

appreciate our presence at the global

airport hubs to which they fly. In Dubai

we have a special operation that supplies

Shell AeroJet fuel to our Business Aviation

customers. We also supply aviation

lubricants, fluids and greases to many

customers across the Middle East,” the

GM adds when asked about their interest

in the new airport.

The company also keeps a close

eye on emerging markets such as India,

where Shell Aviation has expanded

into 12 airports. “Shell Aviation is one

of the largest marketers of jet fuel

globally. In terms of geography, Shell

Aviation has four regions across the

world where we focus our attention;

Americas, Europe, Middle East & Africa

and Asia-Pacific. Our state of the art

supply and operations at the busy global

airport hubs is key for our global airline

customers,” Mr. Jory concluded.

Dubai International Airport

February 2012 I 39

I February 201240

ANALYSIS

Location, location, locationRepeated three times for emphasis, this phrase is a real estate agent’s mantra. The adage we hear over and over sounds true for the region’s businesses. Industrial rents in particular areas in Dubai have fallen but at the same time, pre-let rents in certain locations have witnessed a rise, argues the real estate specialist Cluttons.Cluttons, the real estate specialist that

has enjoyed a dedicated Middle Eastern

presence since 1976, offers a review of

activity within the light industrial and

logistics sector in 2011. The company

notes that early 2011 saw industrial

rents being 25 per cent less than 12

months previously. Rents in particular

have reduced in the small terraced unit

market where supply from schemes

in Dubai Investments Park and Dubai

Industrial City has introduced large

amounts of new stock. In this market,

rents have reduced from 20-22 AED to

18-20 AED per square foot.

However, pre-let rents have seen a

rise over the last year from 30-32AED per

square foot to 35AED per square foot and

above. The facilities achieving this level of

rent have occupier-led design points as well

as high build quality; matching the standards

set in the West. Cluttons surmises that

although rents in the less favorable industrial

areas have fallen throughout the year, better

locations, higher quality, and larger buildings

remain scarce, while a degree of confidence

has began to return from occupiers.

Supply and demand

Cluttons notes that Q3 and Q4 of 2011 saw a

number of requirements emerge from light

industrial and logistics occupiers seeking

onshore ‘build to suit’ developments.

One of the reasons behind this increased

activity is the lack of higher specification

buildings that are of interest to international

companies. Moreover, the short supply of

facilities over 5,000 sq m, (50,000 sq ft)

has stabilised the rent for such buildings.

A gulf in pricing as prospective occupiers

and vendors disagree on values is common

throughout the real estate market and is not

avoided in the warehouse sector.

The demand for high quality facilities has

created a two-tier market within the

February 2012 I 41

ANALYSIS

United Arab Emirates (UAE). There is

demand for quality units from modern

businesses as well as a demand for lower

quality existing units from occupiers able to

operate out of lower specification premises.

It is believed that demand has also been

driven by the GCC petrochemical industry

and its downstream suppliers in the oil and

gas sectors as the price of oil continues to

remain high.

Traditional industrial areas in Dubai such

as Al Quoz and Ras al Khor have continued

to have high occupancy and maintained

rental levels as local businesses favour

these areas when compared to newer

industrial locations where rents have

fluctuated more. Dubai Industrial City (DIC)

is seen to be an ever increasingly popular

location for businesses as occupancy in

warehousing at the site has increased 40-

50 per cent over the past two years.

Furthermore, industrial land transactions

have seen a 75 per cent increase with large

occupiers choosing DIC over competing

industrial areas. This take up is driven by the

relatively good value propositions available

from the landlord.

Multi-modal platform

The first successful freighter service flight

from Dubai World Central (DWC) helped

signal a new chapter in Dubai’s emergence

as one of the world’s leading aviation hubs.

In addition the first ‘super sheds’ were

completed and handed over to occupiers

in 2011. These include CEVA, Aramex

and Agility. The CEVA development set a

benchmark in terms of building design, as

it is the first LEED Gold certified building of

this type in the region.

Being dubbed as a multi-modal logistics

platform, the DWC logistics district is worth

taking a deeper look as it is situated adjacent

to the Al Maktoum International Airport and

enables fast-cycle logistics businesses to

better control their inventory and create

greater efficiencies across their supply chain.

With the necessary infrastructure, space,

facilities and access in place, the district is

suited as an effective distribution or global

supply chain hub for the Middle Eastern,

Southeast European, CIS, Indian sub-

continent and African markets.

Connected via a dedicated logistics

corridor, the Jebel Ali Port, the Jebel Ali Free

Zone and Dubai World Central form a single

custom bonded and free zone environment

spanning an area of around 200 sq km. A

multimodal logistics platform, the DWC has

direct access to UAE’s main trans-emirates

highways, the future Etihad Rail network,

Al Maktoum International Airport and the

Jebel Ali Port, providing unmatched speed,

connectivity and flexibility.

According to Dubai World Central

management, the logistics district offers:

• Shared warehouses and dedicated plots

for freight forwarders

• Plots for logistics businesses

• Plots for integrator facilities including

light manufacturing

• Offices and commercial buildings for lease

• A free zone with 100pc ownership, free

capital transfer and zero taxes

High quality facilities

Investors have continued to have a

strong appetite for well-let, high quality

logistics and warehouse facilities.

However, as a result of limited supply

in this class of investments, it has

meant that transactions are few and far

between and yields are hardening as a

consequence.

Outlook for 2012

Cluttons predicts that the light industrial

and logistics sectors will see Dubai World

Central taking centre stage as we move

into the new year. Rumours abound with

regard to cargo flights and the introduction

of passenger flights as Emirates expansion

at Dubai International Airport moving other

carriers out of the city centre. Having direct

access to the UAE’s main trans-emirates

highways, the future Etihad Rail network, Al

Maktoum International Airport and the Jebel

Ali Port would suggest that Dubai World

Central is likely to become the leading hub

for logistics in the GCC.

Another location in which the sector

could see growth in activity could be

Meydan. Cluttons understands a number of

international logistics operators are due to

build facilities here as well as there being

interest from further occupiers in the light

manufacturing and logistics sectors. Dubai

Industrial City will see a higher amount of

activity and take up as the United Nations

move their operations from International

Humanitarian City.

The oil and gas sectors will continue

to expand, as exploration and extraction

remain buoyant on the back of high oil

prices. Furthermore, demand for facilities

from logistics operators will be fuelled as

there is improvement in consumer spending

and the tourism market continues to pick

up and companies look to expand their

existing operations.

Finally, Will Wright Industrial Consultant

Middle East from Cluttons says; “We

anticipate that the outlook at the start

of 2012 will be brighter than it was for

the previous two years. Furthermore,

Cluttons will continue to provide a high

standard of management consultancy

and expertise across the logistical and

industrial sectors.”

Note: US$1=AED3.65

Credits: The bulk of this article was contributed by

Cluttons LLP, an independent partnership of chartered

surveyors founded in 1765 with a network of offices.

Although rents in the less favorable industrial areas have fallen throughout the year, better locations, higher quality, larger buildings remain scarce and a degree of confidence has began to return from occupiers

Will Wright, Industrial Consultant Middle East, Cluttons

I February 201242

INNOVATION

We have all known great safety leaders.

They are the ones whose commitment

to safety, combined with excellence in

leadership, has enormous positive influence

in making the organisation safe. As we

come to know more about the role of

leadership in driving sustainable safety

performance, understanding the qualities of

great safety leadership becomes even more

important. What do these people do that

distinguishes them as great safety leaders?

Is being a great safety leader different than

being a great leader generally, or is it the

same? This article takes a closer look at the

principles of effective safety leadership,

the ways in which leaders are connected

to safety outcomes, and the practices that

effective safety leaders use to drive safety

excellence in their organisations.

Why leadership matters

The role of leadership in safety has not

always been completely clear. Some safety

practitioners have focused on employee-

driven safety to the exclusion of all else

(including a meaningful role for leadership).

That began to change with a 1997 study

of behaviour-based safety initiatives.

Results showed that the most important

factor in predicting success was the quality

of leadership they were given. This was

intriguing given that the initiatives studied

were all employee-driven. Many of the

leaders at the sites studied were unclear at

that time what role they should play in the

employee-driven initiative, or whether they

should play any role at all.

The study also showed that companies

highly successful in safety were also

successful in operational performance

generally, suggesting that safety is a proper

focus of leadership; not only because safety

correlates to strong business performance,

but also because it provides a natural starting

place to engage the workforce in meeting

organisational goals. These findings, and our

own experience, led us to examine more

closely the relationship between leaders and

safety outcomes. Where does the leader fit

within the system or systems that produce

safety outcomes and what kinds of things

can leaders do to leverage that influence?

Role of leaders in safety

Safety functioning is made up of several

discrete factors that are aimed at one

thing; removing hazards at the working

interface, the place where people interact

with the technology of the organisation.

Safety enabling systems (hazard reduction

and mitigation, training, procedures,

compliance, etc.) are the means by which

organisations directly identify and remove

these hazards. Enabling systems rely on

the quality of organisational sustaining

systems (management practices, personnel

selection practices, the structure of the

organisation itself, etc.) in order to function

effectively. In turn, both these factors are

strongly influenced by the safety climate

and organisational culture that is created

by leadership. Together, these elements

What makes a great safety leader?Seven practices that distinguish the good from the great

February 2012 I 43

INNOVATION

constitute the organisational system that

drives safety performance.

While this blueprint relies on several

factors to produce good safety outcomes,

leadership is the driving force. Through

what they say, what they choose to focus

on, what they do, leaders can make safety

functioning easy or hard, determine the

quality of sustaining systems, the right use of

enabling systems, and so on. In other words,

effective safety leaders practice discernable

behaviours that directly influence the culture

of the organisation and its safety functioning.

Best practices of effective safety leaders

Leaders vary in their abilities and skills to

provide safety leadership. This is as true for

the senior leader as the first-line supervisor.

Some leaders have a natural inclination

towards safety and need little help; others

are quite reluctant to take on safety issues,

and may even be apprehensive about it.

Leaders are often chosen for their technical

ability, and providing excellent safety

leadership is necessarily a “people activity”

requiring high levels of interpersonal skills.

Regardless of where a leader is, our

experience is that two basic principles guide

the development of safety leadership. The

first is that safety leadership behaviours are

subject to the same principles as any other

set of behaviours – that is, they can be

learned and developed. The second is that

great safety leaders are great leaders who

are motivated to improve safety; they are no

different than great leaders generally.

We have seen seven definable

behaviours recur among great safety

leaders. These practices are valuable to

leadership generally, but we have derived

them with safety in mind. It is useful to think

about these practices as sequentially related;

one builds upon the other.

Vision: The effective leader is able to

“see” what safety performance excellence

would look like and conveys that vision in a

compelling way throughout the organisation.

Examples of this practice include acting in

a way that communicates high personal

standards in safety, helping others question

and rethink their assumptions about safety,

and describing a compelling picture of what

the future can be.

Credibility: The effective leader is credible

to other people in the organisation, and

fosters a high level of trust in his or her

peers and reports. Examples of fostering

this practice include being willing to admit

mistakes with others, “going to bat” for direct

reports and the interests of the group, and

giving honest information about safety even

it if is not well received.

Collaboration: The effective leader works

well with other people, promotes cooperation

and collaboration in safety, actively seeks

input from people on issues that affect them,

and encourages others to implement their

decisions and solutions for improving safety.

Communication: The effective leader is a

great communicator. He encourages people

to give honest and complete information

about safety even if the information is

unfavorable. This leader keeps people

informed about the big picture in safety, and

communicates frequently and effectively up,

down, and across the organization.

Action-Orientation: The effective leader is

proactive rather than reactive in addressing

safety issues. This leader gives timely,

considered responses for safety concerns,

demonstrates a sense of personal urgency

and energy to achieve safety results, and

demonstrates a performance-driven focus by

delivering results with speed and excellence.

Feedback & Recognition: The effective

leader is good at providing feedback

and recognizing people for their

accomplishments. This person publicly

recognizes the contributions of others,

uses praise more often than criticism, gives

positive feedback and recognition for good

performance, and finds ways to celebrate

accomplishments in safety.

Accountability: Finally, the effective leader

practices accountability. He gives people

a fair appraisal of the efforts and results in

safety, clearly communicates people’s roles

in the safety effort, and fosters the sense

that every person is responsible for the

level of safety in their organisational unit. It is

important to note that this practice is placed

last; accountability, absent the context of the

other practices, can be counterproductive.

Leading Forward

Effecting the kind of safety performance that

defines an organisation can only be done

by a company’s leaders. Leaders determine

priorities, shape the organisational culture,

provide the resources, and foster the talent

that drives the engine of safety performance.

Drawing on the experience and learnings

of hundreds of organisations, we now know

what things leaders need to do in order to

leverage their influence.

The good news is that these practices,

once understood, can be developed and

refined. Doing so gives leaders a chance to

create a substantial impact on safety outcomes

— and gives organisations the means to

develop safety leaders at every level.

The author, Stuart Johnston, is a consultant with BST

(www.bstsolutions.com), and helps organizations

in the Arabian Peninsula and the Middle East

define change strategies for safety performance

improvement. Stuart can be reached at stuart.

johnston@bstsolutions.com.

Stuart Johnston, BST

Safety is a proper focus of leadership; not only because safety correlates to strong business performance, but also because it provides a natural starting place to engage the workforce in meeting organisational goals

I February 201244

PRODUCT UPDATE

Humbaur presents SENKO tilt-bed trailer

Telemar unveils iCGlobal for maritime communications

Hornet Horizontal Carousel provides storage solutions

Telemar in partnership with ORBIT

Communication Systems and Milano

Teleport announced the launch of iCGlobal,

a new paradigm in maritime satellite

communications. This flexible and future-

proof solution combines the benefits of

all-weather global coverage of C-Band and

cost-efficient scalable airtime packages with

the easy-to-install compact OrBand™ VSAT

system. iCGlobal recommended package

includes unlimited global airtime at 128kbps

CIR, OrBand™ VSAT system and other

necessary equipment as well as an extended

warranty at a cost of $3300 per month.

A key component of the iCGlobal solution

is OrBand, a compact C-band maritime

VSAT system that was built specifically

to overcome the limitations of traditional

C-band terminals. OrBand takes up 40pc

less deck space than industry-standard

systems and is over 30pc lighter. Small

enough to be shipped as a single, fully

assembled and tested unit in a standard

The new Hornet Horizontal Carousel

provides organisations with significant

levels of increased productivity, space

savings and increased accuracy for

storage and retrieval applications of

small parts, items and case handling.

The new carousel system also comes

with the Intelligent Machine Health

Monitoring (IMHM) system built in at no

charge and provides the lowest cost

means of automation available to meet

organizations needs to be cost effective.

The automated storage and retrieval

horizontal carousel system increases

productivity and reduced labor by up to

2/3 by bringing items to the operator and

eliminating wasted walking, searching

activities. Every carousel is designed

using quick adjustable shelves in metal

bins which rotate horizontally on a track.

Systems can be designed with simple

push of a button or foot switch controls

to a full suite of inventory management

software which can be integrated

into existing WMS and ERP systems.

Integrated pick to light and voice picking

systems help assure accuracy to 99.99pc

levels. Likewise, the quickly adjustable

shelves in the bins often translate into

70pc floor space savings and perfect for

areas with limited ceiling heights or tiered

to maximize high ceilings.

The south-German trailer manufacturer

Humbaur’s tandem tilt-bed trailer is designed

especially for the transport of machines

with low ground clearance. All vehicle

components are designed for heavy-duty

use. Its sturdy bolted frame and side wall

structure is made from 3 mm thick steel

plate. Hot-dip galvanised components

ensure a rust-free service life for the trailer.

Hydraulically lowering axles and the metre

long access ramp help with machines

having a low ground clearance to load

almost at ground level. The necessary

safety is provided by a non-slip special hole

pattern and 10 lashing rings integrated in

the flooring framework. These are each

tested to a tensile force of 800 kg to DEKRA

for particularly heavy transport loads. The

Humbaur SENKO is available in two box

dimension – 3.55 x 1.66 and 4.00 x 1.91

m. Its payload varies from 1.5 to 2.6 tons,

depending on the model.

20-foot container, OrBand drastically lowers

deployment costs and can be installed in a

matter of hours. This means that OrBand can

be installed while ships are on routine port

calls, substantially driving down operational

costs and eliminating the need for vessels to

await dry dock.

We work for Bombardier Transportation Austria GmbH – RSI Rail Services International Austria GmbH – Railtec Entwicklungs- und HandelsGmbH – Deutsche Bahn - Stadtwerke München – Städtische Verkehrsbetriebe Zwickau GmbH – VAG Verkehrs-Aktiengesellschaft – SWB Stadtwerke Bonn Dienstleistungs-GmbH – Erfurter Bahn GmbH – Jenaer Nahverkehr GmbH – Bayrische Oberlandbahn GmbH – Dortmunder Eisenbahn GmbH – Rurtalbahn GmbH – Eurobahn – Voith Turbo Lokomotivtechnik GmbH & Co.KG – Kabel Technik Kiel – Gmein-der Lokomotivenfabrik GmbH – Bombardier Transportation GmbH – MGW Service GmbH & Co.KG – Northrail Technical Services GmbH & Co.KG – EuroMaint Rail AB – Motala Train AB – DB Schenker Rail Tabor S.A. – Capro GmbH – Hittmayr Baumaschinen GmbH – Hansa-Flex Hydraulik GmbH – Hagn Techn. Elastomere GmbH – MKE Metall- u. Kunststoffwaren Erzeugungs GmbH – Siems & Klein Autowerstatt-Technik Vertriebs GmbH – Tesso Klimageräte Vertriebsges.mbH – ÖBB Technische Services GmbH – ÖBB Immobilienmanage-ment GmbH – ÖBB Infrastruktur AG – Siemens AG Österreich – Wiener Linien GmbH & CoKG – IVB Inns-brucker Verkehrsbetriebe – Zillertaler Verkehrsbetriebe – RTS Rail Transport Services GmbH and many more.

WHEN TIME IS OF THE ESSENCEAND YOU MUST PERFORM

H&P Trading delivers Austrian craftsmanshipand solves your technical problemsin public transport and infrastructure!

ROAD+hoses & fittings+gear boxes & axels+pneumatic systems+doors & hinges+cnc parts+nuts & bolts+special parts+etc.

RAIL+fire protection+lighting & lamps+bearings & fittings+glass & windows+spare parts for brake systems+spare parts for the cabin+interior parts+etc.

Sales Success Management for H&P Trading by Wind & Wind FZ LLC.WE BRING THE EXPERTS TO THE MIDDLE EAST!

Troubleshooting

Spare Parts & Consumables

Research & Development

Improvements & Innovations

Redesign & Rebuild

ISO 14001, ISO 9001, EN 15085

!

Wind & Wind FZ LLCDubai Media City, Al Thuraya Tower II, Office 1402

Dubai, United Arab Emirates(represented by Gutenberg Publishing FZ-LLC)

T +971 (4) 4334 360F +971 (4) 4517 945E info@wind-wind.comW www.wind-wind.com

H&P Trading GmbHBundesstrasse 18

A-7531 Kemeten, Austria

We work for Bombardier Transportation Austria GmbH – RSI Rail Services International Austria GmbH – Railtec Entwicklungs- und HandelsGmbH – Deutsche Bahn - Stadtwerke München – Städtische Verkehrsbetriebe Zwickau GmbH – VAG Verkehrs-Aktiengesellschaft – SWB Stadtwerke Bonn Dienstleistungs-GmbH – Erfurter Bahn GmbH – Jenaer Nahverkehr GmbH – Bayrische Oberlandbahn GmbH – Dortmunder Eisenbahn GmbH – Rurtalbahn GmbH – Eurobahn – Voith Turbo Lokomotivtechnik GmbH & Co.KG – Kabel Technik Kiel – Gmein-der Lokomotivenfabrik GmbH – Bombardier Transportation GmbH – MGW Service GmbH & Co.KG – Northrail Technical Services GmbH & Co.KG – EuroMaint Rail AB – Motala Train AB – DB Schenker Rail Tabor S.A. – Capro GmbH – Hittmayr Baumaschinen GmbH – Hansa-Flex Hydraulik GmbH – Hagn Techn. Elastomere GmbH – MKE Metall- u. Kunststoffwaren Erzeugungs GmbH – Siems & Klein Autowerstatt-Technik Vertriebs GmbH – Tesso Klimageräte Vertriebsges.mbH – ÖBB Technische Services GmbH – ÖBB Immobilienmanage-ment GmbH – ÖBB Infrastruktur AG – Siemens AG Österreich – Wiener Linien GmbH & CoKG – IVB Inns-brucker Verkehrsbetriebe – Zillertaler Verkehrsbetriebe – RTS Rail Transport Services GmbH and many more.

WHEN TIME IS OF THE ESSENCEAND YOU MUST PERFORM

H&P Trading delivers Austrian craftsmanshipand solves your technical problemsin public transport and infrastructure!

ROAD+hoses & fittings+gear boxes & axels+pneumatic systems+doors & hinges+cnc parts+nuts & bolts+special parts+etc.

RAIL+fire protection+lighting & lamps+bearings & fittings+glass & windows+spare parts for brake systems+spare parts for the cabin+interior parts+etc.

Sales Success Management for H&P Trading by Wind & Wind FZ LLC.WE BRING THE EXPERTS TO THE MIDDLE EAST!

Troubleshooting

Spare Parts & Consumables

Research & Development

Improvements & Innovations

Redesign & Rebuild

ISO 14001, ISO 9001, EN 15085

!

Wind & Wind FZ LLCDubai Media City, Al Thuraya Tower II, Office 1402

Dubai, United Arab Emirates(represented by Gutenberg Publishing FZ-LLC)

T +971 (4) 4334 360F +971 (4) 4517 945E info@wind-wind.comW www.wind-wind.com

H&P Trading GmbHBundesstrasse 18

A-7531 Kemeten, Austria

We work for Bombardier Transportation Austria GmbH – RSI Rail Services International Austria GmbH – Railtec Entwicklungs- und HandelsGmbH – Deutsche Bahn - Stadtwerke München – Städtische Verkehrsbetriebe Zwickau GmbH – VAG Verkehrs-Aktiengesellschaft – SWB Stadtwerke Bonn Dienstleistungs-GmbH – Erfurter Bahn GmbH – Jenaer Nahverkehr GmbH – Bayrische Oberlandbahn GmbH – Dortmunder Eisenbahn GmbH – Rurtalbahn GmbH – Eurobahn – Voith Turbo Lokomotivtechnik GmbH & Co.KG – Kabel Technik Kiel – Gmein-der Lokomotivenfabrik GmbH – Bombardier Transportation GmbH – MGW Service GmbH & Co.KG – Northrail Technical Services GmbH & Co.KG – EuroMaint Rail AB – Motala Train AB – DB Schenker Rail Tabor S.A. – Capro GmbH – Hittmayr Baumaschinen GmbH – Hansa-Flex Hydraulik GmbH – Hagn Techn. Elastomere GmbH – MKE Metall- u. Kunststoffwaren Erzeugungs GmbH – Siems & Klein Autowerstatt-Technik Vertriebs GmbH – Tesso Klimageräte Vertriebsges.mbH – ÖBB Technische Services GmbH – ÖBB Immobilienmanage-ment GmbH – ÖBB Infrastruktur AG – Siemens AG Österreich – Wiener Linien GmbH & CoKG – IVB Inns-brucker Verkehrsbetriebe – Zillertaler Verkehrsbetriebe – RTS Rail Transport Services GmbH and many more.

WHEN TIME IS OF THE ESSENCEAND YOU MUST PERFORM

H&P Trading delivers Austrian craftsmanshipand solves your technical problemsin public transport and infrastructure!

ROAD+hoses & fittings+gear boxes & axels+pneumatic systems+doors & hinges+cnc parts+nuts & bolts+special parts+etc.

RAIL+fire protection+lighting & lamps+bearings & fittings+glass & windows+spare parts for brake systems+spare parts for the cabin+interior parts+etc.

Sales Success Management for H&P Trading by Wind & Wind FZ LLC.WE BRING THE EXPERTS TO THE MIDDLE EAST!

Troubleshooting

Spare Parts & Consumables

Research & Development

Improvements & Innovations

Redesign & Rebuild

ISO 14001, ISO 9001, EN 15085

!

Wind & Wind FZ LLCDubai Media City, Al Thuraya Tower II, Office 1402

Dubai, United Arab Emirates(represented by Gutenberg Publishing FZ-LLC)

T +971 (4) 4334 360F +971 (4) 4517 945E info@wind-wind.comW www.wind-wind.com

H&P Trading GmbHBundesstrasse 18

A-7531 Kemeten, Austria

I February 201246

Nov-Dec 2011 Issue 42

FEATURE : GEODIS WILSON 24Integrated supply chain solutions

PROFILE : BARLOWORLD 30 Expanding into new regions

EVENT REVIEWTHE BIG 5 34Building and construction show

Middle East

www.log.ae

GCC RAIL STEAMS AHEAD

A promising outlook for the rail sector

ISSUE 43 | JANUARY 2012

YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE

www.log.ae

HEAVY WEIGHT CHAMPIONS

GCC airports expand air cargo capacity | Page 06

Improving connectivity with neighbours

Offering specialised logistics services

Impressive HQ opens at DWC

SSI SCHAEFER KUWAITGAC

FEATURE | 24 PROFILE | 28 OVERVIEW | 35

Issue 44 | FeBRuARY 2012

YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE

www.log.ae

WAREHOUSE MANAGEMENT SYSTEMSWMS promises efficiency, agility and performance in supply chains | Page 06

Ups & downs of real estate

First metro in the Maghreb

Industry’s leading award ceremony

LOG. LEO 2012

IndustrIaL rEnts

aLGIErs MEtrO

OVERVIEW | 24 PROFILE | 28 OVERVIEW | 35

Branch Manager – UkraineCandidates must have experience in all aspects of Freight Forwarding including seafreight, airfreight and project cargo.

Responsibilities:■ Lead and manage the Kiev operations■ Develop and implement strategies & plans ■ Fully responsible for the P&L, credit control and accounting systems.

Requirements:■ An experienced Freight Forwarding professional with proven experience and success ■ Should have good operational knowledge and be “hands-on”■ Must have a strong commercial and entrepreneurial bias ■ Financial skills and experience in managing a P&L■ Excellent communication skills in Russian and English essential TO APPLY, VISIT WWW.LOG.AE/JOBS

Group General Manager - AsiaThe role involves working closely with the General Manager Asia to oversee and direct all warehousing operations and related office based administration within both Singapore and operations in Korea, Malaysia and China. Should ensure that all Asia operational issues arising in the business are appropriately identified, assessed, monitored and managed correctly.

Duties:■ Assisting with the development of the Group’s strategy within Asia■ Overall management of Asia accommodation planning■ Negotiations with 3rd parties■ Ensure ongoing compliance with all Customs and Exchange policies and procedures■ Liaison with Group Managers

Requirements:■ Strong operational background■ Demonstrate strategic and tactical thinking and planning■ Confident with strong communication skillsTO APPLY, VISIT WWW.LOG.AE/JOBS

General Manager - DubaiThe General Manager is to manage every aspect of the Contract Logistics operation and play a key role in developing the DC / warehouse complex into a profitable and market leading facility. Experience with warehouse automation and temperature controlled facilities is preferred.

Responsibilities:■ Establish best practice processes, systems and SOP’s ■ Roll out facilities and services in a phased manner ■ Lead the Business Development efforts ■ Work with internal teams to ensure client satisfaction

Requirements:■ Extensive experience in managing a large distribution business■ Experience with temperature controlled storage ■ Proven success in managing, developing and motivating a large team■ Good Middle East experienceTO APPLY, VISIT WWW.LOG.AE/JOBS

Advertise your job in LOG. Classifieds: Call: +971 (4) 4334 360

E-mail: info@gutenberg-dubai.com

VP, Global Supply Chain - North AmericaThis position is responsible for developing and managing the strategic direction of the company’s global supply chain organization. It includes direct responsibility for the global planning function for the IAM, IDT and AdvanIDe business units, new production release initiatives with our Contract Manufacturers, Global Logistics management and Cost reduction initiatives.

Responsibilities:■ Management responsibility for $280M of global spend■ Management responsibility for all Global Supply Chain personnel■ Fiscal budget responsibility■ To drive direct and indirect material cost reductions per company goals■ Partner with other operations counterparts ■ Working with the R&D and Innovation and Quality teams

Requirements:■ 10+ years of Supply Chain Management experience■ Experience with managing overseas Contract Manufacturers■ General understanding of the company’s financial metrics■ Ability to interact with customers■ Ability to interact with management■ Ability to read and interpret technical journalsTO APPLY, VISIT WWW.LOG.AE/JOBS

General Manager - ThailandThe role will appeal to individuals who are commercially astute and place strong emphasis on customer relationships. Career wise you will be looking for a significant leadership challenge and stretching operational improvement targets over a number of sites. Driving operational excellence in cost, quality standards, efficiency and resource optimization as well as being a key member of the executive team.Ideally you will be familiar with labour intensive environment and relish the prospect of a high profile role. The successful candidate will provide thought leadership and have good influencing and communication skills.TO APPLY, VISIT WWW.LOG.AE/JOBS

LOG. CLASSIFIEDS

February 2012 I 47

Project Manager - BeijingReporting to the both the head of projects and the regional director – you will be expected to manage the day to day issues surrounding the warehouse management and upgrade. The first warehouse will set the tone for the various rollout projects which will commence by late 2012 early 2013.

Requirements:■ 7-9 years in warehouse management and upgrade ■ 5 years Project Management experience■ In-depth experience with WMS implementations■ Ideally from Cold Storage/F&B/FMCG■ Bi-lingual (English / Mandarin) – and must have local experience TO APPLY, VISIT WWW.LOG.AE/JOBS

General Manager (Port Agency & Logistics) - QatarA Shipping Services organisation requires an experienced General Manager for their business in Qatar. The position will suit someone with strong ship agency or port services experience.

Responsibilities:■ Enhance business relationships ■ Ensure financial returns & profitability ■ Train and develop a high quality team ■ Monitor overall performance

Requirements:■ Minimum 10 years experience ■ Experience in the Middle East ■ Strong general management skills■ University Degree TO APPLY, VISIT WWW.LOG.AE/JOBS

Logistics Manager - SingaporeYour key responsibility is to ensure the availability of all product lines at store level across this highly popular retail chain. Should ensure full visibility on promotions, inventory requirements, replenishment and demand requirements. You will be directly accountable for ensuring that the product is delivered to the group of stores across Singapore.

With a broad range of product lines, it is expected that you will be very familiar with FMCG, Health & Beauty, OTC pharmaceuticals and ideally prescription medicines. A DG licence will be highly regarded as is fluency in spoken Mandarin..TO APPLY, VISIT WWW.LOG.AE/JOBS

Supply Chain Manager – IraqOur client is a leading importer and distributor of frozen and chilled food products with a wide customer base in Kuwait and Iraq. They are currently seeking to recruit an experienced Supply Chain Manager. The role is based in Erbil, Iraq.The successful candidate will lead Supply Chain improvements to facilitate sales growth whilst controlling logistics costs.

Responsibilities:■ Responsible for overall performance of supply chain function ■ Based on Sales Forecasts, plan total inventories, production, finished goods, warehousing and transit inventories to ensure optimization and efficiencies in working capital.■ Coordinate forecast via inputs from commercial, marketing and finance.

Requirements:■ Minimum 8 years in supply chain■ University Degree in Supply Chain/Logistics or equivalent qualification■ Very good communication skills in Arabic AND EnglishTO APPLY, VISIT WWW.LOG.AE/JOBS

@ MOREONLINE

Advertise your job in LOG. Classifieds: Call: +971 (4) 4334 360 E-mail: info@gutenberg-dubai.com

LOG. CLASSIFIEDS

I February 201248

LOG CAFé

Form, lead & motivate

diverse teams

Mario M. Veljovic, Group’s Operations Director, Aptec Holdings Ltd.

Sometimes you meet a person and even

with a short handshake you can feel the

positive energy in him or her. It is exactly

what we felt when we visited this energetic

and dynamic executive in his vibrant

office at Dubai Internet City. His title is a

little long: Mario M. Veljovic is currently

the Group’s Operations Director of Aptec

Holdings Ltd. as well as the General

Manager of Advanced Technology Services

(ATS) FZ-LLC and Advanced Logistics

Services (ALS) LLC. Mario is a 38-year-old

German who graduated from the German

Chamber of Commerce and Industry (IHK)

having over 16 years rich experience in

the ICT distribution environment.

“I am now working for Aptec Holdings

as the Group’s Operations Director;

predominantly involved with developing and

implementing e-Commerce and Logistics &

Technology Services strategies. I am also

involved in reengineering of all business

processes to secure cost efficient business

operations and increase productivity,” he

explains. Constant improvement through

automation is his objective.

Mario arrived in Dubai with his wife and

remembers the good old days: “It was a

very easy and somehow a “finally home”

experience. That all helped us throughout

our time here in Dubai to master all

challenges – personally and professionally.”

He adds: “So much has happened since I

joined my “present Company” nine years

ago, that I can hardly remember how the

start was. Dubai and my company were

both different at that time, but the past and

the present have their good sides.” He is

usually among the first in the office and

enjoys quiet moments before the daily

business starts.

Mario was initially tasked to manage a

JV with Ingram Micro to capitalise on the

market potential for PC components in the

region and set up a dedicated business

unit – Aptec Components. He was promoted

several times in line with his company’s

changing strategies and market dynamics.

Mario’s great social skills and experience

from mature European markets also helped

him a lot in forming, leading and motivating

diverse multinational teams across various

geographical locations.

Among Mario’s biggest achievements

are the successful restructuring of Aptec’s

Distribution Sales & Marketing Department

and improvement of sales efficiency and

productivity by introducing innovative

web-based systems and processes. The

Warehouse Department was turned into an

independent Logistics Services Company,

Advanced Logistics Services (ALS) LLC,

that brings profitable business to the group

by servicing non-group companies in the

region.

Mario enjoys the sunshine here most:

“It’s actually a ‘big city’ and we love it so

much. Great infrastructure, I should say. And

the best of all, sunshine almost 365 days a

year!” With his natural positive look to life,

Mario concludes: “I love the energy of the

people I see around from the first day of the

year! It makes me feel that I want to prove all

the analysts wrong and surprise them with a

year much better than everyone anticipates.”

The LOG. team met Mario M. Veljovic in his office at

Dubai Internet City

Issue 44 | FeBRuARY 2012

YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE

www.log.ae

WAREHOUSE MANAGEMENT SYSTEMSWMS promises efficiency, agility and performance in supply chains | Page 06

Ups & downs of real estate

First metro in the Maghreb

Industry’s leading award ceremony

LOG. LEO 2012

IndustrIaL rEnts

aLGIErs MEtrO

OVERVIEW | 24 PROFILE | 28 OVERVIEW | 35

FAX TO: +971 4 451 7945

I February 201250

EVENTS The LOG. Middle East Magazineis a publication of Gutenberg

Publishing FZ-LLC. Licensed byTECOM, Dubai, UAE.

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FEBRUARY

supplY CHAIn AnD logIstICs QAtARDoha, Qatar; 29 Jan - 1 Feb www.supplychainandlogisticsqatar.com

AIR CARgo InDIAMuMbai, inDia; 1-3 February www.stattimes.com/aci2012/index.htm

InteRMoDAl AsIAMelbourne, australia; 9-10 February www.transportevents.com

sAuDI uRBAn tRAnspoRt ConFeRenCeriyaDh, sauDi arabia; 12-15 February www.saudiurbantransportation.com

optIMIsIng oIl & gAs logIstICsabu Dhabi, uae; 13-14 Februarywww.fleminggulf.com

sCAnDInAvIAn RAIl DevelopMentstockholM, sweDen; 22-23 Februarywww.europeanrailwayreview.com

gReen tRAnspoRtAtIon AnD logIstICs suMMItDubai, 23-24 Februarywww.arabianreach.com/galg

pHARMACeutICAl logIstICs MIDDle eAstDubai, uae; 26 - 28 Februarywww.pharmaceuticallogisticsme.com

AnnuAl IntellIgent tRAnspoRt sYsteMs InDIAnew Delhi, inDia; 27 - 28 Februarywww.intelligenttransportindia.com

AIRpoRt seCuRItY AsIAkuala luMpur, Malaysia; 27 - 28 Februarywww.airportsecurityasia.com

RAIltel euRopeVienna, austria; 27-29 Februarywww.terrapinn.com

ClouD CoMputIng WoRlD FoRuMDubai, uae; 28-29 Februarywww.cloudcomputinglive.com

mARch

FutuRe oF RAIl FReIgHt In euRopeberlin, GerMany; 12 Marchhttp://marketforce.eu.com/conferences/railfreight12

logIMAtstuttGart, GerMany; 13-15 Marchwww.logimat-messe.de

AnnuAl BRIDges sAuDI ARABIAriyaDh, 18-21 Marchwww.bridgessaudi.com

APRIL

RAIl InDustRY MeetIngsFrance, 7-8 Marchwww.abe-industry.com/railim

euRAsIA RAIl tuRkeYistanbul, 8-10 Marchwww.eurasiarail.eu/_olD/2011/

kIngDoM MAss tRAnsIt suMMItriyaDh, sauDi arabia; 1-2 aprilwww.naseba.com

WoRlD poRts & tRADe suMMItabu Dhabi, uae; 2-4 aprilwww.worldportsandtrade.com

kuWAIt MetRo & RAIlkuwait; 17-18 aprilhttp://promediakw.com/2012/rail

uk RAIl DevelopMent & InvestMentlonDon, uk; 18-19 aprilwww.europeanrailwayreview.com

log. leo AWARDsDubai, uae; 19 aprilwww.gutenberg-dubai.com

RAIl teCHnologY ConFeRenCesaMstelVeen, the netherlanDs; 24-25 aprilwww.railtechnologyconferences.com

soutHeRn AsIA poRts logIstICs & sHIppIng coloMbo, sri lanka; 26-27 aprilwww.transportevents.com

UPcOmING

MultIMoDAlbirMinGhaM, uk; 1 - 3 Maywww.multimodal.org.uk

MIDDle eAst RAIl oppoRtunItIesDoha, Qatar; 9-10 Maywww.fleminggulf.com

logIstICs tRAnspoRt exHIBItIonhelsinki, FinlanD; 9 - 12 May http://mark.logexpo.fi

supplY CHAIn AnD logIstICs FoRuM sAuDI ARABIAriyaDh, sauDi arabia; 13 - 16 Maywww.supplychainsaudiarabia.com