March 2022 Issue 89
ENHANCING THE BUSINESS OF LOGISTICS
UD Trucks launches the new Euro 5 Range in the region Saudi Arabia remains UD Trucks’ biggest market in the region; sales in Bahrain increase 40%
ECS WIREMIND Strategic Partnership
ALMAJDOUIE LOGISTICS Success Story
TWINTEC
Flooring Specialists
ADD SPEED AND FLEXIBILITY TO YOUR E-COMMERCE SHIPMENTS WITH TK COURIER! Visit to learn more: turkishcargo.com.tr
DRIVE THE NEW WAY
NEW IVECO T-WAY: HIGH PRODUCTIVITY AND SAFETY ON OFF-ROAD TERRAINS With a complete line-up of AWD and PWD versions and the the 16-speed HI-TRONIX automated gearbox, the IVECO T-WAY features a host of functionalities such as Rocking Mode, Off-road Mode, Creeping Mode and 4 reverse gears to tackle with ease the toughest off-road conditions. The new architecture of the EBS system, combined with disc brakes on all wheels, greatly improves the vehicle’s performance and the driver’s safety in the most demanding applications.
NEW IVECO S-WAY: HIGH TECHNOLOGY AND EFFICIENCY FOR ON-ROAD MISSIONS The new IVECO S-WAY, with a completely redesigned and reinforced cab, offers a wide choice of Euro III/V diesel engines, a delivering class-leading power from 360 HP to 560 HP Euro III / 570 HP Euro V and superior fuel-saving devices, such as anti-idling feature, Ecoswitch, Ecoroll and Smart Alternator. 12-speed HI-TRONIX automated transmission with the most advanced technology in its category, electronic clutch and best-in-class torque-to-weight ratio.
Readying for the long haul
SIGNATURE MEDIA FZ LLE P. O. Box 49784, Dubai, UAE Tel: 04 3795678 Email: info@signaturemediame.com Exclusive Sales Agent Signature Media LLC P.O. Box 49784, Dubai, UAE Publisher: Jason Verhoven jason@signaturemediame.com Editor: Malcolm Dias malcolm@signaturemediame.com Art Director: Johnson Machado johnson@signaturemediame.com Production Manager: Roy Varghese roy@signaturemediame.com
Printed by United Printing Press (UPP) – Abu Dhabi Distributed by Tawseel Distribution & Logistics – Dubai
Contributor’s opinions do not necessarily reflect those of the publisher or editor and while every precaution has been taken to ensure that the information contained in this magazine is accurate and timely, no liability is accepted by them for errors or omissions, however caused. Articles and information contained in this publication are the copyright of Signature Media FZ LLE & SIGNATURE MEDIA LLC and cannot be reproduced in any form without written permission.
It’s celebration time at UD Trucks as the international trucks manufacturer breached sales expectations, expanded its operations in the Middle East and North Africa and introduced new, sophisticated models in 2021. Performance metrics recently released by UD Trucks showed sales up by 30% in the MEENA Region for the calendar year 2021. The company, the subject of the Cover Story for this edition, also launched its new, upgraded Euro 5 Range of its popular, prized Quester and Croner Trucks that offer enhanced durability and boost profitability. The new model upgrades also minimise environmental impact and optimise customer satisfaction, the company affirmed. Additionally new model upgrades are also available on the Euro 3 range. The landscape appears hunky-dory for the company, a mood that is upbeat and optimistic as reflected in an exclusive and expansive interview given to Global Supply Chain by Mourad Hedna, President, UD Trucks, MEENA (Middle East-Europe-North Africa). Elsewhere, two top French companies—ECS’ Cargo Digital Factory solutions developer and Wiremind Cargo recently launched independent digitalisation-focused company CargoTech, that aims to develop new digital solutions for the air cargo industry. This mega development is a breakthrough development will enable the two stakeholder companies deliver more quickly on their joint vision of becoming a leading provider of end-to-end software solutions to the air cargo market, noted Nathanaël de Tarade, Board Member, Wiremind and CEO, Wiremind Cargo who alongside Cedric Millet, ECS Group Chief Strategy & Digital Officer explained how his company will take care of automating and digitalising routine processes to reduce costs and optimise revenues while fostering innovation. Also, Global Supply Chain also interviewed Kris Brusselmans, Chief Operating Officer, Almajdouie Logistics Company, on the sidelines of the recently concluded Breakbulk Middle East 2022 held at the Dubai World Trade Centre on 28 February and 1 March. Brusselmans fielded multiple questions and spoke on a wide range of issues relating to Almajdouie Logistics Company, its progress over the decades, its current high profile and its ambitions for the future. Flooring specialist company Twintec Middle East’s Ruth Waugh, General Manager & International Business Development Director & VP Marketing & Communications, in an interview also observed that the company provides a personal product through a total offer concept with a high level of performance, environmental sustainability and aesthetics worldwide. Additionally, there is more content for insightful reading. Happy reading! Malcolm Dias Editor malcolm@signaturemediame.com MARCH 2022 3
AL GHURAIR AUTOMOBILES
March 2022 Issue 89
22 06 NEWS 28 GWC Qatar Agility Emerging Markets 30 Logistics Index Up to date news of the Global Suppy Chain industry
GWC reports good performance in 2021.
UAE climbs to 3rd in Agility Emerging Markets Logistics Index
32 38 Almajdouie Logistics Swisslog SFR 44 Etihad Rail 46 ECS Wiremind
ECS and Wiremind Cargo have joined forces and launch CargoTech Exclusive interview with Kris Brusselmans, the company’s COO.
Swisslog has partnered with SFR, the Swiss Railway Authority. Etihad Rail has signed a financing agreement with First Abu Dhabi Bank.
4 MARCH 2022
UD TRUCKS
Readying for the long haul; demonstrates a good track record in 2021.
48 Twintec RouteQ 52
Twintec’s Ruth Waugh on the flooring specialist’s concrete floor slabs.
RouteQ to meet demand for innovative delivery routing solutions in the Middle East.
54
SAP Supply Chain Management Software
SAP Solutions enable oversight and management of each area of the entire supply chain
58 Evoteq: OpEd
Supply chain begins with embracing digital innovations, writes Jihad Tayara, CEO, Evoteq.
60 Sustainable Transportation
Global warming and modern transportation go hand in hand, writes Yousif Ahmed Al-Mutawa, Chief Executive Officer, Sharjah Sustainable City.
SPAIN
From Barcelona, Madrid, Zaragoza, Malaga and beyond to the world! We speak fluent cargo! Whether it is pharmaceuticals, live animals, fresh or most other commodities; at Qatar Airways Cargo, we are trained to give your shipments the attention they deserve. 23 Qatar Airways Cargo specialists in Spain and 1200+ tonnes of capacity/week are at your disposal. Moved by people qrcargo.com
DP World partners with Maersk Mc-Kinney Moller Centre for Zero Carbon Shipping
DP World reports strong volume growth of 9.4% in 2021 n DP World Limited handled 77.9mn TEU (twenty-foot equivalent units) across its global portfolio of container terminals in full year 2021, with gross container volumes increasing by 9.4% year-on-year on a reported basis and up 8.9% on a likefor-like basis. On a Q4-2021 basis, DP World handled 19.6mn TEU, up 2.6% year-on-year on a reported basis and up 2.3% on a like-for-like basis. 2021 gross volume growth was broad based with India, Asia Pacific, Middle East & Africa, Europe, Australia and Americas regions being the key growth drivers. At an asset level, Qingdao (China), Mumbai, Mundra, Chennai (India), Sokhna (Egypt), London Gateway (UK), Caucedo (Dominican Republic), Callao (Peru), and
6 MARCH 2022
Sydney (Australia) delivered a strong performance. Jebel Ali (UAE) handled 13.7mn TEU in 2021, up 1.9% year-on-year. At a consolidated level, DP World terminals handled 45.4mn TEU during 2021, increasing 8.8% on a reported basis and 8.1% year-on-year on a like-forlike basis. “We are delighted to report another strong volume performance with growth of 9.4% for the year, which is once again ahead of industry growth of 6.5%. This outperformance is due to our continued investment in high quality assets in the right locations and the delivery of our strategy to offer integrated supply chain solutions to beneficial cargo owners,” remarked Sultan Ahmed Bin Sulayem, Group Chairman and Chief Executive Officer, DP World.
n DP World reinforced its commitment to being a world leader in sustainability by entering a strategic partnership with Mærsk Mc-Kinney Møller Centre for Zero Carbon Shipping (the Centre). Launched in 2020 as an independent, not-forprofit organisation, the Centre is undertaking intensive research and development to find practical ways to decarbonize the maritime industry through several global initiatives. As a partner, DP World is committing to longterm strategic collaboration and contribution to the development of zero carbon technologies and solutions for the maritime industry. DP World will make several of its specialists available to the Centre in Copenhagen to provide insights to end to end supply chains and help demonstrate and test novel solutions across the value chain in a live setting. “Their proactive response to addressing climate change and strong sustainability focus is very aligned with our mission and we look very much forward to having DP World onboard,” remarked Bo CerupSimonsen, CEO, Mærsk Mc-Kinney Møller Centre for Zero Carbon Shipping. “DP World is excited to be working alongside other leading organisations committed to a collaborative approach to solving the challenges of achieving zerocarbon economies,” noted Sultan Ahmed bin Sulayem, Group Chairman and CEO, DP World.
TASNEE embarks on large-scale digital transformation with SAP n TASNEE, the first Saudi joint stock company wholly owned by the private sector, recently inked an agreement with global technology company SAP, to implement SAP S/HANA Cloud, the core offering of RISE with SAP, to power its business growth strategy. The milestone transformation tackles various challenges faced by TASNEE which include a greater need for business agility, operational efficiency, and compliance as well as growing demand for visibility on real time financial performance. By moving to S/4 RISE, TASNEE will benefit from the resilience of S4 on the Cloud while also solving complex business process with a highly customized ECC system. As part of this digital transformation, SAP will deliver to TASNEE a range of solutions, including a variety of SAPS/4 HANA Cloud and SAP Enterprise Testing solutions among other SAP products. “Partnering with SAP is a long-term strategic decision that will enable TASNEE to develop new operational models through improved decision-making, facilitating an enhanced digital experience overall,” affirmed Mutlaq Al-Morished, CEO, Tasnee. “The partnership with TASNEE is truly a milestone achievement, as it will be one of the most significant RISE transformations in the wider region,”asserted Ahmed Al-Faifi, Senior Vice President and Managing Director, SAP Middle East North.
The SAP - TASNEE deal signing ceremony.
In addition to the transformation initiative, FAHSS (an integral subsidiary of TASNEE) also signed an education reseller agreement with SAP. As part of the agreement, FAHSS shall offer a combination of instructor-led and self-paced training solutions developed by SAP Training and Adoption unit. TASNEE was founded in 1985 and is one of the world’s largest investors in titanium dioxide.
dnata significantly enhances cargo offering in Erbil, Iraq n dnata has achieved an important milestone in Erbil, the capital of Iraqi Kurdistan. The company implemented the ‘OneCargo’ system, digitizing processes and maximizing efficiencies across its cargo operations in Iraq. The advanced tool, which dnata plans to launch globally, is expected to deliver significant commercial benefits for customers. OneCargo automates key business and operational functions, including safety and quality monitoring, reporting and ULD management, with an integrated, cloud-based platform. Having launched the system in Iraq, dnata plans to gradually implement OneCargo at additional stations, including airports in Pakistan, Switzerland, UAE, USA and Zanzibar (Tanzania) across its extensive global cargo network. By 2023, OneCargo will have a user base of over 2,000 staff members across 10 stations in six countries, interfacing seamlessly with a host of other system applications within the IT landscape of the business, according to a press communique. “The implementation of OneCargo in Erbil is a major milestone which paves the way for the global launch of this advanced digital solution. In addition to improving operational
and commercial performance, OneCargo will help us drive synergies across our international network and ultimately offer more value to our customers,” remarked David Barker, dnata’s Divisional Senior Vice President for Airport Operations.
MARCH 2022 7
Tradeling celebrates two years of a good track record n Tradeling, MENA’s dominant e-marketplace focused on business-to-business (B2B) transactions, celebrates two years of being the main search and sourcing tool for business buyers across the region. Tradeling has seen an exponential revenue growth of more than 35% month on month since its inception and its product selection increasing to over 700,000. Today, Tradeling has over 126,000 registered buyers and sellers from over 55 countries and has seen a notable 70,000 requests for quotations and inquiries. The past two years have seen Tradeling partner with over 20 like-minded entities and trade associations around the world, reinforcing Tradeling’s offering to successfully connect global suppliers with MENA-based demand. As Tradeling ventures into its third year, it boasts a growing team of over 200 tech and business enthusiasts that is set to reach 450 people by the end of 2022 as it expands to Egypt and Saudi Arabia. This expansion will continue to see Tradeling support MENA-based buyers to find the right products and materials, engage with new suppliers, and deliver end-toend services for business-to-business trade engagement. “The future of trade is digital and we are continuing to grow our team and expand our digital ecosystem in the most user-friendly and convenient manner by enabling businesses around the world to trade through a single, seamless and reliable digital platform,” emphasized Marius Ciavola, CEO, Tradeling.
Marius Ciavola, CEO, Tradeling.
8 MARCH 2022
FarEye announces second ESOP Buyback Program
Kushal Nahata, CEO & Co-founder, FarEye.
n FarEye, a global SaaS platform provider transforming last-mile logistics, recently announced liquidation for Employee Stock Ownership Plan (ESOP) holders worth US$ 1.22mn via buyback. Aimed at rewarding and recognizing employees’ dedication and hard work in driving FarEye’s growth over the last year, this is the company’s second buyback and largest to date, a press statement noted. FarEye will be performing this buyback of vested ESOPs using its cash reserves, a move that signals the confidence the management and investors share in the business, and the important role of employees in the success of FarEye. In 2021, FarEye launched a revised ESOP aimed at being more employee friendly, and democratizing ESOP grants to a significant section of its 700+ employees globally. In the last year, the number of ESOP holders jumped more than 400 percent to over 200 employees, a number that is expected to grow rapidly. “This ESOP is our way of showing our gratitude and in turn, making our employees become partners in our success,” observed Kushal Nahata, CEO, FarEye. Last year, FarEye raised US$ 100mn in Series E funding to accelerate the company’s mission of empowering brands to provide Amazon Prime-like delivery experiences and redefining how products are delivered across diverse logistics networks, a press statement concluded.
AD Ports Group records strong revenues of US$ 1.1bn for 2021 n AD Ports Group recently announced its 2021 financial results based on preliminary, unaudited financials for the 12 months ended December 31, 2021, reporting revenue growth of 14% year-on-year to AED 3.9bn (US$ 1.1bn) compared with AED 3.4bn (US$ 933mn) in 2020, driven by volume growth, business diversification and new partnerships. Net profit reached AED 845mn (US$ 230mn) in 2021 from AED 397mn (US$ 108mn) in 2020. As of December 31, 2021, the total assets of the Group stood at AED 28.5bn (US$ 7.8bn), while the equity increased to AED 10.7bn (US$ 2.9bn). “These excellent results demonstrate that AD Ports Group has consolidated our leadership position during a period where global trade and supply chains have experienced many challenges,” commented Falah Mohammed Al Ahbabi,
Chairman, AD Ports Group. “We believe that the Group is well positioned to accelerate its local and international expansion plans in 2022 and beyond with transformational impact across a broad range of industries,” remarked Captain Mohamed Juma Al Shamsi, Group CEO, AD Ports Group. “AD Ports Group benefits from our well-balanced capital structure, investment-grade credit ratings, and stable longterm cash flows. This was evidenced by 14% Revenue growth compared to 2020,” said Martin Aarup, Group Chief Financial Officer, AD Ports Group. Container throughput grew to 3.4mn TEUs in 2021, up from 3.2mn TEUs in 2020, despite the ongoing supply constraints faced in the global shipping and container market.
Etihad Cargo launches ‘Forever Home’ for animal rescues
n Etihad Cargo has launched ‘Forever Home’, to support not-for-profit live animal at risk transportation. The new policy enables the UAE’s national carrier to consider requests from bona fide rescue and animal welfare organisations for not-forprofit transportation of animals at risk. “Forever Home reflects Etihad Cargo’s desire to assist in the relocation of live animal rescue missions, which may involve animals which have been abandoned, seized by authorities, or neglected,” said Martin Drew, Senior Vice President Sales and Cargo, Etihad Aviation Group. ‘Forever Home’ significantly expands Etihad Cargo’s
existing animal welfare and conservation policy, which commits to identifying and implementing actions to help prevent the illegal wildlife trade and encourage responsible sustainable tourism. Etihad Cargo’s dedicated LiveAnimals and SkyStables products provide customised solutions for transporting animals and horses, from family pets to global conservation projects. Adhering to all regulatory requirements, Etihad Cargo ensures the safest treatment of all species entrusted in its care with dedicated handling, pallet build-up, and ramp transport by specially trained staff.
MARCH 2022 9
UAE based Gulftainer unloads heavy, oversized project cargo in Iraq n UAE-based Gulftainer, one of the world’s leading privately-owned independent port operators, recently successfully unloaded a 121 ton, 35m-long vacuum unit at its Iraq Container Terminal (ICT). The unit, manufactured for Midland Refineries Company in the UAE, was shipped via the port of Jebel Ali to Iraq, where it will be utilised by Najaf Refinery. The shipping of such units signals a rebound in business for Gulftainer and
other port operations around the globe, whose supply chain was affected by the pandemic. “Our team worked closely with
key customers to ensure the seamless shipping and unloading of the vacuum unit,” commented Nic Gray, Managing Director, Gulftainer’s Operations in Iraq.
Dubai Customs’ achievements in 2021 n Dubai Customs crowned its outstanding performance in 2021 by winning the Elite Award in Dubai Government Excellence program’s biggest edition, which saw the participation of 132 local and international judges who assessed over 30 government entities against a number of strict quality standards. Dubai Customs launched its 5-year (2021-2026) strategic plan, which stands on five principles: Agile, Innovative, Digital, Disruptive, Visionary, following four main objectives to enhance revenues, reduce costs, and maintain the organization’s leading role worldwide. Trade sector in Dubai is growing steadily, which reflects a healthy recovery from the repercussions of the pandemic,” remarked Ahmed Mahboob Musabih, CEO, Ports, Customs and Free Zone Corporation, Director General of Dubai Customs. Dubai Customs transactions skyrocketed 50% to 24mn from 16mn in 2020. The leading government department has invested generously in its smart systems, and 99.6% of transactions were completed through
10 MARCH 2022
smart channels. Dubai Customs achieved another feat and topped the IdeasUK Platinum Index obtaining 12 platinum accreditations, including nine accreditations with full mark; unprecedented achievement at the public and private sectors worldwide. Customs enhanced this performance further by winning the idea of the year and nine other international awards from IdeasAmerica 2021. The leading Government Department won six golden awards, which is the first time in which Dubai Customs wins this number of golden awards in Ideas America’s finals.
The government department organized four meetings for business groups in the emirate within its vision of enhancing communication with strategic partners. Members of the Dubai Customs Consultative Council include National Association of Freight and Logistics (NAFL) and others. Dubai Customs has signed agreements with Jebel Ali Free Zone (JAFZA), Dubai Airport Free Zone (DAFZA), Dubai CommerCity and Dubai South to provide them with the services and facilities of the Cross Border E-Commerce Platform.
Sipchem achieves financial targets ahead of schedule n Saudi Arabia’s Sahara International Petrochemical Company (Sipchem), one of the leading companies in the global petrochemical sector, has announced that it is firmly on track to achieve the financial and operational goals set out when the newly merged company was created in May 2019. During the two and a half years since the merger of Saudi International Petrochemical Company and Sahara Petrochemicals Company to form Sipchem, the company has accomplished many significant milestones throughout its integration journey. This target has already been surpassed six months ahead of schedule to reach a synergy value of SAR 298mn (US$ 75.43mn), a remarkable achievement that has been driven by increases in efficiency and productivity, according to a press statement. The company has built on its strength and marketing capabilities, which helped achieve its integration objectives while taking advantage of Sipchem’s strong presence in global markets and proximity to demand centers, customers, and consumers around the world. 70% of its products are marketed through its subsidiaries in Singapore and Switzerland. Sipchem’s focused efforts for effective decision steering and agility also drove increased efficiencies
Eng. Abdullah S. Al-Saadoon, CEO, Sipchem
across core administrative functions, achieving improved accountability and talent retention throughout the organization. “Thanks to our combined resources, we succeeded in leveraging our diversified portfolio, which has enabled us to reach our targets much earlier than anticipated and achieve an annual growth in share value of 145%,” commented Eng. Abdullah S. Al-Saadoon, CEO, Sipchem.
Aramex FY-2021 revenues grow 10% to record AED 6.07bn n Aramex recently announced its preliminary financial results for the fourth quarter (Q4-2020) and full year (FY) ending 31 December 2021. In Q4-2021, revenues rose 1% YoY to AED 1.61bn driven by strong performance in Logistics & Freight-Forwarding Business. FY 2021 Revenues jumped 10% YoY to a record AED 6.07bn. Q4-2021 Operating Profit decreased 33% YoY to AED 60mn. The drop in operating profit is attributed to the Linehaul cost due to the continued pricing pressure higher operating costs as the company continued to scale operations to cater to higher demand and Covid-19 induced costs and capacity constraints. FY-2021 operating profit declined 23% YoY to AED 307mn. Q4-2021 Net Profit fell 21% to AED 46mn compared to Othman Aljeda, CEO, Aramex. AED 59mn in Q4-2020. FY-2021 Net Profit decreased by 15% to AED 225mn, compared to AED 267mn in FY 2020.
“In 2021, we witnessed a significant progress in the pace of recovery of the global economy, while businesses reconfigured operating and business models to adapt to the repercussions of the pandemic,” remarked Captain Mohamed Juma Alshamsi, Chairman, Board of Directors, Aramex. “2021 demonstrated our ability to capture growth opportunities spurred by a buoyant e-commerce market and good recovery in certain industries, while simultaneously implementing a fully redesigned operating model,” commented Othman Aljeda, CEO, Aramex. “Over the course of the year, we invested in expanding our operations in key markets, including Riyadh, where we built and are operating a fully automated warehouse,” noted Alaa Saoudi, COO, Aramex Express.
MARCH 2022 11
DAFZ organizes a sourcing event for business leaders across the F&B sector n The Dubai Airport Free Zone (DAFZ) highlighted the vibrant business environment and investment opportunities it offers to regional and global food companies at the recently concluded Gulfood 2022. During the exhibition, DAFZ organized a promotional event that brought together representatives from the free zone with investors, entrepreneurs and owners of F&B companies. The attendees were briefed on DAFZ’s portfolio of offers, services, tax and investment incentives, and business support it provides to investors. The event provided several opportunities for side meetings and networking
to explore future opportunities with potential partners. Abdulaziz Alhammadi, SVP, Marketing & Business Growth at DAFZ, confirmed that regional and global F&B companies are aspiring to transfer their operations to the emirate of Dubai. This is due to its strategic location at the heart of global trade, as well as its perennial quest to accelerate and enhance the efficiency of supply chains by making these companies and their production processes closer to distributors across various markets. Additionally, DAFZ reviewed its portfolio of programs and initiatives designed to support F&B companies and
Abdulaziz Alhammadi, SVP, Marketing & Business Growth, DAFZ.
their operations, such as Scality. The oneof-a-kind innovative start-up program which is set to attract local, regional and global tech start-ups to establish and grow their businesses in the region.
ACWA Power-led consortium and OPWP inaugurate Ibri project n Under the patronage of HE Sayyid Hamoud Bin Faisal Al Busaidi, Omani Minister of Interior, and in the presence of HE Eng. Khalid Bin Abdulaziz AlFalih, Saudi Minister of Investment, a consortium consisting of ACWA recently inaugurated Ibri 2. This is the first solar independent power project (IPP) to be launched under the country’s national renewable energy programme and connected to the main national grid. The consortium will produce renewable energy over a 15-year period for the Oman Power and Water Procurement Company (OPWP). At an investment of US$ 417mn (OMR 160mn), Ibri 2 is Oman’s largest utilityscale renewable energy project. The project was developed on a build, own, operate (BOO) basis, which utilises solar photovoltaic technology to generate 500 MW of renewable power. “Together with our partners Gulf Investment Corporation and Alternative Energy Projects Co., we have leveraged
12 MARCH 2022
our combined strengths in investments, industry expertise and technological know-how to achieve the rapid and successful completion of the milestone Ibri 2 project,” commented Mohammad Abunayyan, Chairman, ACWA Power. At peak generation capacity, the plant output will be enough to supply an estimated 50,000 homes with electricity and will offset 340,000 tonnes of carbon dioxide emissions a year. “With Ibri 2, we have demonstrated
immensely strong project development capabilities, as this is the largest solar PV power plant in my country, that also incorporates the most advanced technological solutions in the world,” remarked Eng. Yahya Bin Muhammad Al-Rawahi, CEO, Shams Ad-Dhahirah Generating Company, Located in Ad-Dhahirah Governorate, Ibri 2 PV IPP comprises of approximately 1.5mn bi-facial solar panels and extends over an area of 13mn sqm.
DATA AND ROBOTICS PERFECTLY SYNCHRONIZED. Our SynQ software delivers data-driven intelligence that empowers your business by synchronizing the performance of your people, processes and machines. The result is a level of efficiency and performance you never thought possible.
swisslog.com
Bahri Board of Directors expands company capital
Eng. Abdullah Aldubaikhi, CEO, Bahri.
Despite tremendous challenges that have negatively impacted transport prices, we have managed to distribute free shares and profits to our shareholders
n Bahri, the Saudi Arabian global leader in logistics and transportation, recently announced that its Board of Directors is planning to issue free shares, expanding its capital over SAR 4,92bn (US$ 1.31bn) equating to a 25% total increase. The company has shown exceptional flexibility, leading to a major improvement in the final quarter of 2021 compared to the previous quarter and the same period in 2020. Profits are up by 22% in the current quarter thanks to rising transport prices and greater demand for transport services, despite the economic difficulties resulting from the Covid-19 pandemic, a press communique indicated. “Despite tremendous challenges that have negatively impacted transport prices, we have managed to distribute free shares and profits to our shareholders, a move which we are very proud of,” commented Eng. Abdullah Aldubaikhi, CEO, Bahri. Eng. Aldubaikhi noted that Bahri has shown great financial flexibility in one of the most difficult periods the transportation industry has ever faced, adding that the company is constantly working to enhance its services and find new opportunities to improve performance and reduce costs. Last September, the Board of Directors decided to distribute over SAR 393mn (US$ 104.75bn) in cash profits from the first half of 2021 to shareholders, a figure that well exceeded the net profit of SAR 192mn (US$ 51.16mn) announced at the end of the year.
Fertiglobe announces robust 2021 net income of US$ 737mn n Fertiglobe, the strategic partnership between ADNOC and OCI, the world’s largest seaborne exporter of urea and ammonia combined, the largest nitrogen fertilizer producer in the Middle East and North Africa (MENA) region, recently reported that its Q4-2021 revenues increased 138% to US$ 1,184mn. Fertiglobe operates a diverse regional footprint of four world-class production facilities in three countries, Egypt, Algeria and the UAE. The company has significant non-GDP growth levers, benefitting from a unique combination of factors including strategic locations and a competitive low-cost position, which support healthy free cash flows and attractive dividends. As a global leader in merchant ammonia and an early mover in clean ammonia, Fertiglobe is well positioned to capitalize on the global transition to a hydrogen economy, with ammonia having emerged as one of the most promising
14 MARCH 2022
products to enable the energy transition, and benefiting from its existing ammonia production, distribution infrastructure, and access to abundant attractive wind and solar resources for renewable energy generation, according to a press communique. “Our current order book looks healthy into Q2 2022, and we expect H1 2022 to be strong, driven by attractive farm economics, strong demand in our ammonia end markets and our globally competitive position,” remarked Ahmed El-Hoshy, CEO, Fertiglobe. Fertiglobe’s distribution capabilities, including the ability to manage inventories close to key demand centres coupled with a disciplined commercial strategy, allows the company to optimise benefits from the current market conditions, as exemplified by the recent award to supply 500kt urea to Ethiopia this quarter and in the second quarter this year at an average price of US$ 724/ton.
Ahmed El-Hoshy, CEO, Fertiglobe.
We expect H1 2022 to be strong, driven by attractive farm economics, strong demand in our ammonia end markets and our globally competitive position,
Dulsco opens state-of-the-art recycling plant unveiled in Dubai n Dulsco recently commissioned its state-of-the-art Material Recovery facility in Dubai. Located at Ras Al Khor, the new recycling processing plant has a capacity of 80,000 tonnes per year and is a key component of the company’s comprehensive environmental solutions offering. Dulsco’s first manual sorting plant, with a capacity of 40 tonnes per day, was built in 2013 in support of the UAE’s mandate to reduce waste to landfills. However, the plant started exceeding capacity within a few years, necessitating the need for a new facility. “This facility is not only enabling us to reinvent, reimagine, repurpose, and reuse our customers’ waste, but it is also helping us fulfil our commitment to Expo 2020 to help divert waste from landfill,”
commented David Stockton, CEO, Dulsco. The Material Recovery Facility is capable of sorting 240 tonnes of multiple waste streams per day. Waste is separated into different types of dry mixed recycling based on material type before going through various processes, depending on the type of waste. For example, oversized elements are separated from the rest of the feedstock,
with the remainder being segregated into different fractions and undersized materials. Product material then runs through a further separation process to recover metals. Dulsco’s Environmental Solutions span the waste services domain, from community and industrial waste collection to recycling, medical and hazardous waste management.
Udrive gets fresh infusion of new investment n Udrive, the UAE’s homegrown brand providing a payper-minute car rental service for UAE residents and tourists recently completed another strong funding round with strategic investments of US$ 5mn from Cultiv8 and Oman Holding International. Known as the first technology platform in the GCC to offer car rentals by the minute, Udrive recorded strong growth in 2021, clocking two million trips to date, making it one of the largest rental booking platforms by transactions per car in the region. The new funding was secured from Cultiv8, the government’s SME and startup investment arm. “Mobility tech is one of the key investment sectors our technology fund focuses on, and UDrive perfectly fits the fund’s guidelines and the fund manager’s ambitions. With the newly formed board and management team we are excited for Udrive’s continued triple digit growth across the MENAT region during 2022,” noted Arif Alawi, CEO, Cultiv8. Joining Cultiv8 in the funding round was Muscat-based Oman Holdings International, which owns Budget Oman and sees the future of mobility. “We can expect to see radical shifts in how cars will be used both globally and regionally. Udrive presented their wellarticulated plan to achieve successful entry across new market
making our decision easy to invest in Udrive,” commented Eihab Saleh, Oman Holdings International’s Director & CEO. “We are digitizing mobility making it easily accessible to everyone. The recent funding secured will help us invest in new technologies as well as grow our offerings into the region this year,” stated Udrive CEO and co-founder Nicholas Watson.
MARCH 2022 15
Truck It In raises the largest seed round in MENAP trucking space n Homegrown logistics tech start-up Truck It In has closed a US$ 13mn seed round jointly led by venture capital firms Global Founders Capital and Fatima Gobi Ventures. The seed round is the largest of its kind in the MENAP (Middle East, North Africa, and Pakistan) region, blowing out previous highs seen in 2021, which was already a banner year for Pakistani start-ups, the company revealed in a press communique. The latest seed round brings the total raised capital to US$ 17.5mn, which will support Truck It In’s mission to transform Pakistan’s road freight industry. Pakistan is one of the largest road freight markets in the Middle East and North Africa, representing a US$ 25bn annual opportunity, 10% of national GDP. Truck It In aims to be the nexus of road freight in the country by simplifying business for Pakistan’s three million SME businesses and SME truckers (80% of the supply market), who operate in an increasingly complex and deeply fragmented industry.
L to R-Raza Afzal, Muhammad Sarmad Farooq and Haider Navid, founders, Truck In It.
“This seed round comes at an opportune time, as the funds will be deployed to expand our business, driving hiring across all functions, focusing on engineers to help double down on product development and increase our digital penetration in the market,” asserted Muhammad Sarmad Farooq,
CEO, Truck It In. Truck It In is Pakistan’s fastest-growing road freight tech platform servicing clients across Pakistan. The company started operations in 2020 and aims to unlock more than US$ 1 billion for Pakistani businesses through its trucking platform, the press statement concluded.
NADEC transitions to renewable energy n In line with the Kingdom of Saudi Arabia’s Vision 2030, NADEC, the country’s leading agricultural and food processing company and one of the largest in the Middle East and North Africa, together with the French energy company ENGIE, has announced that its solar energy project, located in NADEC’s Haradh industrial park, is now commercially operational since 22 December 2021. The solar PV park was developed as part of a 25-year corporate power purchase agreement between NADEC and ENGIE, the first of its kind in the country. The facility, located on an area of land spanning 766,000sqm, roughly equivalent to 21 football pitches, has a capacity of 30MW. With state-of-the-art technology, the solar PV park features 75,000 photovoltaic bifacial modules with single access trackers, string inverters, and fully automated robotic cleaning, helping boost their production capability and cost-efficiency. “At ENGIE, we are delighted to announce that we have reached a new milestone on NADEC’s solar PV park as it becomes commercially operational. This is a significant achievement for the Kingdom as part of its drive to decarbonize
16 MARCH 2022
the economy and make the shift toward a more sustainable future for all,” commented Turki Al Shehri, CEO, ENGIE, Saudi Arabia, speaking on the launch of the solar PV park’s commercial operations. The project is estimated to lower carbon emissions by 53mn kg annually.
IceWarp inaugurates new office in Dubai’s Business Bay n IceWarp, a global leader in developing unified collaboration tools and messaging solutions for companies of all sizes, has consolidated its presence in the Middle East with the opening of its first office located in the prime area of Business Bay in Dubai. With a presence across 50+ countries, IceWarp provides businesses with affordable, seamlessly integrated, and easy-to-use communications solutions that cover all aspects of business collaboration and productivity. With a capacity for over 20 people, the new office at the prominent location at Marasi Drive in Business Bay, puts IceWarp at the heart of the business hub in the city that will allow them to strengthen their position in the region and grow the presence of brand even further. “It is a milestone moment for us at IceWarp as we take another step towards realizing our goals of expanding the company’s footprint in the MENA region,” affirmed Pramod Sharda, CEO, IceWarp India, and the Middle East at the inaugural ceremonies. “We believe that our new office’s inauguration in Dubai’s Business Bay area surely reinforces our commitment towards the region as we look forward to providing seamlessly collaborated
enterprise email solutions to organizations of all sizes residing in the Middle East and North Africa while creating opportunities for professionals,” he continued. With over 50 million users worldwide, IceWarp’s stellar collaborative solution caters to companies of all sizes, that offer a supremely simplified ecosystem of email solutions that transforms how corporate teams share information and optimize business processes through its streamlined and seamless team collaboration tools.
The continually intensifying move to and acceptance of remote and hybrid working scenarios since the pandemic first hit has made IceWarp’s interactive family of applications a highly sought-after solution. IceWarp, an alternative to Microsoft 365 and Google Workspace, is a global leader for developing business email communication and collaboration solutions serving more than 50 million paid users and 50,000 customers worldwide across 50+ countries, a press communique concluded.
Hahn Air appoints Kirsten Rehmann as new CEO n Hahn Air recently announced the appointment of Kirsten Rehmann (44) as its new CEO. Rehmann joined Hahn Air in 2003 when the company was four years into its existence. Starting as a Sales and Marketing Executive, she quickly advanced within the company and became instrumental in driving the successful expansion of the Hahn Air ticketing business. Over the years, she held various roles in different departments of Hahn Air and acted first as Director of Airlines Business Group and later as Chief Commercial Officer. “I am looking forward to shape the next chapters of Hahn Air together with my team and
Kirsten Rehmann
build future-orientated distribution solutions and ticketing services for our airline and travel agency partners,” remarked Rehmann. “On behalf of Hans Nolte and myself, we are pleased to hand over the Hahn Air leadership to Kirsten Rehmann. Our teams and partners will benefit from her industry knowledge and leadership skills,” commented Nico Gormsen, Cofounder, Hahn Air. Rehmann holds a diploma in international business administration with the majors in tourism and travel. She also earned a Master’s Degree in Marketing and Distribution.
MARCH 2022 17
Prime Aquaculture partners with Jafza to build the region’s first Shrimp Ras Farm n Prime Aquaculture, a subsidiary of Emirates National Aquaculture, recently signed an MoU with Jebel Ali Free Zone (Jafza) to build the region’s first Shrimp RAS farm. The innovative marine shrimp farm, expected to be completed by Q1-2023, will aid in the cultivation of marine shrimp and significantly increase output in the UAE to meet the increasing demand. The MoU was signed by Abdulla Bin Damithan, CEO and Managing Director, DP World UAE & Jafza and Imtiyaz Abdul Razak Kalsekar, Managing Director, Prime Aquaculture. The facility will include a shrimp farm, hatchery, and primary and secondary processing units. The UAE relies heavily on imports to cater to local shrimp demands, with more than 51,000 MT of shrimps being imported per year. The total local consumption of shrimps ranges between 38,000 and 40,000 MT, with pre-covid imports going up to 51,108 MT, and export and re-exports reaching up to 12,204 MT. Prime Aquaculture will incorporate the latest technology in the shrimp farm to ensure that the highest quality of shrimps is produced. With the help of its Recirculating Aquaculture System (RAS) technology with a discharge of five to seven per cent, the farm will produce over 1,000 MT of shrimps per year, which is three times more than the current shrimp production in the UAE.
“The shrimp farms will maintain high-intensity culture systems ensuring absolute biosecurity,” remarked Bin Damithan. “One of the key pillars for the UAE’s National Food Security Strategy is to achieve self-sufficiency. During the pandemic, when travel restrictions were imposed, the importance of local production was highlighted,” commented Kalsekar.
Jaguar Land Rover announces partnership with NVIDIA Jaguar Land Rover has formed a multi-year strategic partnership with NVIDIA, the leader in artificial intelligence (AI) and computing, to jointly develop and deliver next-generation automated driving systems plus AI-enabled services and experiences for its customers. Starting in 2025, all new Jaguar and Land Rover vehicles will be built on the NVIDIA DRIVE software-defined platform— delivering a wide spectrum of active safety, automated driving and parking systems as well as driver assistance systems. Inside the vehicle, the system will deliver AI features, including driver and occupant monitoring as well as advanced visualisation of the vehicle’s environment, the manufacturer indicated via a press release. This full-stack solution is based on NVIDIA DRIVE Hyperion, which features DRIVE Orin centralised AV computers; DRIVE AV and DRIVE IX software; safety, security and networking systems; plus, surround sensors. DRIVE Orin is the AI brain of the car and runs the Jaguar Land Rover Operating System, while DRIVE Hyperion is the central nervous system. “Collaboration and knowledge-sharing with industry leader NVIDIA is essential to realising our Reimagine strategy, setting new benchmarks in quality, technology and sustainability,” remarked Thierry Bolloré, CEO, Jaguar Land Rover.
18 MARCH 2022
Thierry Bolloré, CEO, Jaguar Land Rover and Jensen Huang, CEO, NVIDIA.
“Next-generation cars will transform automotive into one of the largest and most advanced technology industries. Fleets of software-defined, programmable cars will offer new functionalities and services for the life of the vehicles,” commented Jensen Huang, founder and CEO, NVIDIA. Jaguar Land Rover aims to achieve net-zero carbon emissions across its supply chain, products and operations by 2039, the company stated.
AD Ports Group acquires stakes in Aramex and NMDC n AD Ports Group, part of ADQ, an Abu Dhabi-based investment and holding company with a broad portfolio of major enterprises, confirmed that it now owns stakes in two leading enterprises AD Ports Group now holds a 22.32% stake in logistics firm Aramex and a 10% stake in UAE-based contractor National Marine Dredging Company, which specialises in engineering, procurement, construction and marine dredging. “These two leading companies provide a strong strategic
fit with AD Ports Group’s vision to develop the maritime and logistics industries across the region and globally,” stated Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group. “Given the international scope of both Aramex’s and NMDC’s operations, we are confident that there will be significant opportunities for collaboration and growth when aligned with AD Ports Group’s diverse, integrated business model,” he added.
Hunter Foods plans expansion at National Industries Park n Hunter Foods, the leading manufacturer of gourmet, ‘Better For You’ snacks with a presence in Dubai since 1985, recently signed an agreement with DP World’s National Industries Park (NIP) at the recently concluded Gulfood 2022. The agreement was signed by Abdulla Al Jasmi, Head, NIP and Ananya Narayan, Managing Director, Hunter Foods, to build a new facility for the production of a wide range of gourmet and speciality snacks and foods on a 15,000sqm plot. “NIP’s F&B segment has been growing since its inception. Our partners benefit greatly from the park’s modern infrastructure. Its centralised location and the multimodal connectivity offered by the Jebel Ali hub have helped companies gain access to the local market, the MENA region and beyond,” remarked Al Jasmi. “As we now usher in a new era for the company, we are excited to continue our relationship with NIP by building the new state-of-the-art facility. We currently export to over 55 countries and hope to further expand our footprints around the world, in line with the vision of Dubai, UAE,” commented Narayan. Spread over an area of 430,000sqm and employing over 2,000 professionals, NIP has been providing key UAE-based
Abdulla Al Jasmi and Ananya Narayan at the deal signing ceremony.
and global F&B companies and manufacturers with an integrated business ecosystem. With a focus on customers, quality and innovation, Hunter Foods has a robust distribution in all major retail, wholesale, food service establishments and e-commerce platforms, in the UAE and GCC, and exports to countries in five continents, a press communique concluded.
MARCH 2022 19
TXAI completes successful Phase 1 trial n Bayanat, a G42 company, and the leader in geospatial intelligence, data analytics and AI, has announced the successful completion of phase 1 trials of its first autonomous taxi service called TXAI. As one of Bayanat’s key partners, WeRide, a global leader in Level 4 autonomous driving technologies, provides TXAI with its advanced full stack software and hardware solutions and stateof-the-art operating and monitoring systems. Bayanat also worked closely with other key collaborators, Abu Dhabi Department of Municipalities and Transport, the Integrated Transport Centre and Miral Asset Management to run the operation. Operated under full compliance of regulations, the public trials recently took place on Yas Island, with over 2,733 passengers booking the service through the TXAI app which could be downloaded through the Apple and Google Play Stores. Over 16,600 kms of autonomous driving was accomplished. Bayanat is currently working closely with its partners and the UAE authorities to launch the second phase of the program, scheduled for mid-2022, which will include 10 TXAIs operating
across numerous Abu Dhabi locations. “We are committed to continuing to work closely with the UAE authorities to build innovative transport systems by making strategic investments across the smart mobility value chain,” commented Hasan Al Hosani, CEO, Bayanat. “WeRide is very excited to work with Bayanat to bring industry-leading autonomous driving technologies and services to the UAE and the wider region. We are inspired by Bayanat’s commitment to building innovative transport systems. WeRide is dedicated to developing the best autonomous driving for all human beings,” remarked Tony Han, Founderr & CEO, WeRide.
Wizz Air Abu Dhabi expands in the Middle East n Wizz Air Abu Dhabi, the ultra-low-fare national airline of the UAE, will add two new Jordanian destinations to its ever-growing list of routes. These are Amman and Aqaba in Jordan. “We will continue to add to our flight schedule and expand operations as travel restrictions begin to ease across the world – we’re looking forward to welcoming you onboard soon,” remarked Michael Berlouis, Managing
20 MARCH 2022
Director, Wizz Air Abu Dhabi. The airline has a young fleet composed of four brand new state-of-the-art Airbus A321neo aircraft, offering the lowest fuel burn, emissions and noise footprint. Wizz Air Abu Dhabi has the lowest environmental footprint among its competitors in the region, supporting the airline’s longterm commitment to sustainability, a press note concluded.
HOW CAN THE MOBILE RACKING SYSTEM MAXIMIZE YOUR WAREHOUSE SPACE? The Mobile Racking System is a high-density storage system, by tapping into the vertical volumetric space, it reduces the warehouse footprint by 45% yet increases the storage capacity by up to 85%. As a warehouse owner you will save on the total building cost of a new warehouse with a faster return of investment. P.O. Box 37600 Dubai Logistics City – Plot WB54 | Dubai South, Dubai United Arab Emirates | +971 4 804 8100 | ssi-schaefer.com
Benefits: MAXIMIZE STORAGE SPACE EASY ACCESS TO INVENTORIES LOW MAINTENANCE AND SERVICING REQUIRED OPERATIONAL IN TEMPERATURES DOWN TO -30°C
UD TRUCKS
UD Trucks in top gear and on a roll Beating the odds, the truck manufacturer demonstrated a good regional track record in 2021
Performance metrics released by UD Trucks showed sales by 30% in the MEENA Region in 2021. The company also launched its new, upgraded Euro 5 Range of its popular, prized Quester and Croner Trucks that offer enhanced durability and boost profitability. The new model upgrades also minimise environmental impact and optimise customer satisfaction, the company affirmed. Additionally new model upgrades also available on the Euro 3 range.
A
s part of its continuing endeavours to go the extra mile for smart logistics with the most dependable solutions for a demanding, challenging and rapidly evolving industry, UD Trucks is committed to producing the finest trucks that meet the most stringent and tough performance, reliability and durability standards. The November 2021 launch of the new series Euro 5 UD trucks at the Dubai Autodrome, ahead of the introduction of new commercial vehicles regulations in fast-growing regional countries such as the United Arab Emirates, which
22 MARCH 2022
currently has a Euro 4 emission standard, and Qatar, is a milestone development and marks the opening of new road in the company’s quest to revolutionise the trucking industry regionally and globally. The UAE and Qatar among other GCC and regionally countries which will be adopting Euro 5 emission standards by mid-2022. This move by UD Trucks allows businesses to better prepare for the switch to more environmentally-friendly fleets, as the Euro 5 range reduces emissions by about 43 percent compared to Euro 4 and significantly reduces the carbon footprint of the vehicles through
cleaner emissions, the company asserted. Founded in 1935, UD Trucks is a leading Japanese commercial vehicle solutions provider, active in more than 60 countries across all continents. Since its inception in 1935, the company has been an innovation leader with a clear vision to provide the trucks and services for today’s fast-paced world. UD Trucks is an associate company of the Isuzu Group. Following the epic launch, Global Supply Chain conducted an exclusive interview with Mourad Hedna, President, UD Trucks MEENA (Middle East, East & North Africa), who spoke expansively
UD TRUCKS
Mourad Hedna, President, UD Trucks MEENA (Middle East, East & North Africa)
on a range of subjects that included the growth course of the company, its accomplishments, innovations its concerns and endeavours on the environmental front and vision for the future. Global Supply Chain (GSC): How significant is the Middle East / GCC for your commercial vehicles and how is the brand faring in terms of sales in the region? Mourad Hedna (MH): The Middle East is a key market for UD Trucks. The region is known for its tough terrain and harsh
environment. But for many years our products have proved their ability to deliver excellent results and provide our customers with the peace-of-mind that comes with knowing they are operating products that are more than up to the tasks in hand. As importantly, we enjoy partnerships with some of the leading local importers, who are committed to delivering the highest standards of customer service for their customers, consequently playing a significant role in our brand’s success. This has helped UD Trucks to register approximate 33% increase in sales across
the MEENA region, over the past 12 months. GSC: What is your range of commercial vehicles; what are some of your recent introductions and which are among your top selling models in the region? MH: Our current portfolio comprises a wide range of trucks for multiple uses. We cater for different segments and customers with various needs, reflecting our strong innovative nature as we are the only Japanese manufacturer to offer fully automatic models across our medium-duty range.
MARCH 2022 23
UD TRUCKS
In addition, we aim to cover all active segments in the various markets, helped by the fact that we have the widest range of heavy-duty trucks amongst Japanese manufacturers. Our range currently comprises the Quester and Croner models, which have established strong reputations for themselves across the region since their introduction in 2017 and 2019 respectively. They have subsequently benefited from several upgrades to ensure they even better suit the market’s needs and demands. Both are wellknown for their durability and quality. Most recently, we launched the new Euro 5 versions of the Croner and Quester, along with enhanced Euro 3 versions. The launch focused on three key elements: our objective to minimise environmental impact; improve the efficiency and uptime of the trucks; and increase profitability by lowering
24 MARCH 2022
Total Cost of Ownership for our clients. The launch also came ahead of the introduction of new environmental regulations in the United Arab Emirates and Qatar. GSC: Tell us briefly about the Euro 5 highlights and USPs? MH: At UD Trucks, our primary objective is the customer’s satisfaction and peace of mind. For a fast-growing region with plans to introduce stronger regulations in regard to emissions, we launched the Euro 5 models as ahead of the region adopting updated Euro emission standards, which is crucial for UD Trucks as the brand shares the same vision of sustainability Our strategic vision of a ‘Better Life’ is mirrored by the region’s goal to become more environmentally friendly. To continue the path of becoming a sustainability leader in the industry,
we introduced the Euro 5 range in the United Arab Emirates, where Euro 4 emission standards are currently in place, and Qatar, which will adopt Euro 5 emission standards by mid-2022. In addition to minimising polluting emissions, these models also bring greater efficiency in terms of driving experience and ownership costs. In terms of the models specifically, the Euro 5 Quester offers advanced features to benefit the customers, drivers and environment. The model delivers improved fuel economy by about 10 percent and is equipped with Selective Catalytic Reduction (SCR) technology, which has proven to be more reliable when compared to other emission control technologies for reducing emissions. The model comes with advanced technology, such as the ESCOT (Easy Safe Controlled Transmission) automated manual, which automatically selects the
UD TRUCKS
right gear at any given time for the driver. It also features a lighter tare weight and optimised driveline. The driver-focused Euro 5 Croner is available in three models: MKE, LKE and PKE. The truck delivers high levels of versatility as its wheelbase offers up to 21 different configurations to suit the specific demands of various industries. Fuel efficiency has also been improved by the model’s new aerodynamic cab design that reduces drag by 5 percent compared to previous models GSC: Briefly explain the upgrades to the existing Quester and Croner Euro 3 trucks and the implications? MH: Our new Euro 3 Trucks benefit from numerous upgrades. They offer increased environmental-friendliness through the fuel coaching system, which enables and ensures optimum profitability for our customers in the region. Like the Euro 5 models, they are more driver-focused
and receive the same upgrades, such as a new instrument cluster, ESCOT feature (Automated Manual Transmission), body builder module and the UD Trucks Telematics Services. GSC: What opportunities and challenges for the present and future do you foresee going forward? MH: The region offers extremely exciting opportunities for the truck market, but it does have its challenges, most notably caused by the impact of the pandemic. This has made planning difficult, but with a pragmatic approach and the ability to respond quickly to changes if required, it’s not impossible. Another concern relates to logistical disruptions that lead to elongated delivery timings, which the region isn’t quite used to. A further challenge is one faced by our customers who we maintain very close relationships with. Delayed financial approvals lead to challenges in arranging
finances for new requirements. This creates pressure on companies’ cash flows, which may end up impacting their purchase decisions. However, we also see opportunities in the market. We know through the pace of the region’s development that addressing environmental concerns is key for the future. Our introduction of the Euro 5 range of trucks bears testimony to UD Trucks’ commitment to addressing this, as we prepare accordingly by ensuring complete peace-of-mind and allowing our forward-thinking customers to act. In addition, we expect the construction and waste management sectors to expand in Saudi Arabia, and we foresee increased demand, in part due to the kingdom’s 2030 vision, which is set to increase the number of projects. In Qatar, we can see the country’s 2022 FIFA World Cup preparations are causing a final push, which we expect to result in growth in both segments of waste management and construction.
Euro 5 Quester offers advanced features to benefit the customers, drivers and environment. It is equipped with Selective Catalytic Reduction technology, which has proven to be more reliable for reducing emissions. MARCH 2022 25
UD TRUCKS
Our motto ‘Better Life’ is our new ‘Ikigai’ is better for logistics; better for business; better for people; better for the planet.
GSC: What are your brand strengths and how are you leveraging these to gain a larger market share? MH: We have been a challenger brand and continue to push boundaries with regard to product development and innovation. One of our key innovations, the Selective Catalytic Reduction (SCR) technology, which we were the first brand to introduce back in 2004, is proof of our brand’s strength in pioneering and innovation. It is within our nature as a brand to be constantly evolving, and recently, we have taken additional steps to ensure we are ahead of the industry, as evidenced by our introduction of the new Euro 5 range. UD Trucks continues to utilise the best of Japanese automotive manufacturing, blended with the support and expertise of Isuzu Motors and our partners throughout the region.
26 MARCH 2022
We are also pleased to share that we have increased our retail and wholesale by 25% in 2021 compared to 2020. A major reason for this milestone is the solid foundation we have built over the years for our growth. That, coupled with the range of products we offer and the strong relationships we have with our importers and partners in the region. GSC: Tell us about your CSR (Corporate Social Responsibility) activities particularly in the light of the growing public concern about sustainability / vehicle pollution and its impact on the environment? MH: With regards to increasing environmental awareness, we have been at the forefront through our ‘Better Life’ commitment. Our introduction of the Selective Catalytic Reduction (SCR) back in 2004, shows our pioneering
of a technology to significantly boost environmental protection and fuel economy. This is the core of the ‘Better Life’ commitment that drives the integration of sustainability across all our company’s operations and processes to realise lower environmental impact, higher customer satisfaction, higher profitability, and a better place for people to work and live. Incidentally, our motto ‘Better Life’ is our new ‘Ikigai’(Japanese secret for a long and happy life) is better for logistics; better for business; better for people; better for the planet. On the other hand, and unfortunately due to the pandemic, we were unable to execute any CSR campaigns in 2021. However, we are planning for a number of activities that resonate with our brand’s vision in 2022.
SUPPLY CHAIN SOLUTIONS
Design
THE NEW GENERATION OF AUTONOMOUS CASE-HANDLING ROBOTS
High-performance, flexible and intelligent, HAIPICK BY SAVOYE robots fit perfectly into complete goods-to-person systems controlled by SAVOYE’s WES, and combining: order picking stations, ‘put-to-light’ led shelving and conveyors. PRODUCTIVITY INCREASE Increase your operators’ productivity by 3-4 times
HIGH AVAILABILITY No single point of failure Products are fully accessible even in case of temporary shutdown
QUICK INSTALLATION On-site deployment in less than 5 weeks
VERY SCALABLE Compatible with different tote sizes Easy addition of robots, shelves and workstations as needed
ÉVOLUTIVITÉ
VERY FLEXIBLE Storage adaptation to all warehouse geometries
Burlington Tower 11th Floor, Office no.1111 &1108 Business Bay Dubai - United Arab Emirates P.O.Box 51188
More info:
marketing-me@savoye.com
www.savoye.com
GWC
GWC announces US$ 61.8mn in net profits for 2021 Gross revenues reach US$ 357mn at end of 2021
G
WC recently announced its financial results for the financial year ending 31 December 2021 achieving net profits of QAR 225mn (US$ 61.8mn), with gross revenues reaching QAR 1.3bn (US$ 357mn) at the end of 2021. “I take this opportunity to extend my gratitude to all our stakeholders and partners, who continue to trust and encourage us to exceed their expectations. We have a lot to look forward to this year and we will endeavour to build on our
28 MARCH 2022
achievements,” stated Sheikh Abdulla Bin Fahad Bin Jassem Bin Jabor Al Thani, Chairman, GWC.
Sustainable Growth GWC established Qatar’s first logistics hub in Ras Bufontas Free Zone. This Regional Logistics Hub offers freight, customs clearance, acclimatized storage, transportation, and the company’s advanced IT infrastructure, among other services. The hub features two warehouses,
which offer unmatched logistical and last mile delivery options to the aviation, pharmaceutical and events industries including the FIFA World Cup Qatar 2022. The Hub is also home to UPS Customer Center. Over the last 15 months, GWC has underlined its critical role in the nation’s medical cold supply chain, ensuring the safe delivery of the Covid-19 vaccine from airport to vaccination centers, as the Authorized Service Contractor for UPS in the State of Qatar.
GWC
At the forefront of innovation Continuing its commitment to find innovative solutions while maintaining the highest environmental standards, GWC signed an agreement with Gaussin, a pioneer of clean and smart freight transport, and Gam Qatar to test Gaussin’s zero-emission electric tractors and yard automation solutions in several GWC logistics hubs, including GWC Al Wukair Logistic Park. Building a business ecosystem GWC is mindful of its responsibility as a leading logistics provider in Qatar and the Middle East region and the role this sector plays in the growth of a nation. For this very reason, GWC put together the “Getting you in the Game Forum” which provided a platform for experts from various verticals to discuss complex logistical issues behind mega-events, such as global sporting competitions, in addition to discussing regional trends and developments. This first-of-its-kind hybrid forum threw light on the behind-the-scenes work that goes into organising mega events while keeping sustainability and the long-term impact in mind. 2021 also saw GWC signing a MoU with The College of Science and Engineering (CSE) at Hamad Bin Khalifa University (HBKU) to encourage research in the fields of engineering, technology, and sciences with a special emphasis on logistics and supply chain management, with the aim to boost industry performance and identify mutually beneficial new opportunities and ideas. Another area of focus for GWC has been to support MSMEs as it firmly believes that they are the backbone of any economy and are essential for the growth of Qatar. “The GWC Al Wukair Logistics Park is one of the flagship developments of GWC, it is a one-stop-shop for entrepreneurs, with a very strong focus on providing micro, small and medium scale Enterprises (MSMEs) with access to logistics and light
Sheikh Abdulla Bin Fahad Bin Jassem Bin Jabor Al Thani, Chairman, GWC
I take this opportunity to extend my gratitude to all our stakeholders and partners, who continue to trust and encourage us to exceed their expectations. We have a lot to look forward to this year and we will endeavour to build on our achievements
The Road Ahead
Ranjeev Menon, Group CEO, GWC
industry infrastructure needed for their growth and success. In addition, GWC will be taking care of all the regulatory as well as infrastructure and supply chain needs,” remarked Ranjeev Menon, Group CEO, GWC. Due to its central location, close proximity to the airport and the port, coupled with seamless offering of logistics services, it will be the main distribution hub for handling the logistics mandate for the FIFA World Cup Qatar 2022TM.
GWC will be offering a broad spectrum of services ranging from venue logistics, broadcasting and cold chain logistics, to shipping, customs clearance, transport and warehousing, down to logistics operations of merchandise, souvenirs, and food and beverages. “While the World Cup will be an exhilarating experience; however, after 18 December 2022, we will turn our focus towards the legacy of this tournament,” assured Menon. In addition to this, GWC will continue to support MSMEs through its various initiatives and projects. It will also continue to work towards developing its human capital which will be critical in expanding regionally and internationally, while furthering its quest for innovation, sustainable solutions, and digital transformation.
MARCH 2022 29
AGILITY EMERGING MARKETS LOGISTICS INDEX
UAE climbs to 3rd in Agility Emerging Markets Logistics Index Tops all emerging economies in business climate, digital readiness
T
he United Arab Emirates ranks No. 1 overall as the most competitive emerging market in GCC and No. 3 globally after only giants China and India, according to the recently revealed 2022 annual Agility Emerging Markets Logistics Index. The UAE led all 50 countries in the Index in creating the best business conditions and in the area of digital readiness, a new category in the Index.
MENA Rankings The UAE outperformed all 50 countries in business fundamentals, an area where Gulf and MENA countries are clear leaders. Others near the top: Saudi Arabia (3), Bahrain (5), Oman (6), Morocco (9), Jordan (10), and Kuwait (12). Overall, Saudi Arabia (6) and Qatar (7) also ranked among the top 10 emerging markets in the 2022 Index, which was led by China (1) and India (2). Also performing well: Oman (14), Bahrain (15) and Kuwait (17). The 2022 Agility Emerging Markets Logistics Index is the company’s 13th annual ranking of the world’s 50 leading emerging markets. The Index ranks countries for overall competitiveness based on their planning strengths, business climates and, for the first time, their digital readiness -- factors that make them attractive to logistics providers, freight forwarders, air and ocean carriers, distributors and investors. The Index includes a survey of 756 supply chain industry professionals.
Digital readiness Top 10 in digital readiness: UAE, Malaysia, China, Saudi Arabia, India, Thailand, Qatar, Indonesia, Chile and Philippines. Kuwait (12) and Oman (15) also ranked highly. “The connection between a country’s digital capabilities and growth prospects is undeniable,” remarked Tarek Sultan, CEO, Agility.“The competitiveness of emerging
30 MARCH 2022
The United Arab Emirates ranks No. 1 overall as the most competitive emerging market in GCC markets countries will be determined by their ability to develop digitally skilled businesses and talent pools and find the resolve to lower their emissions in ways that spur growth rather than sacrificing it,” he continued. Digital readiness assesses digital skills, training, Internet access, e-commerce growth, investment climate, and ability to nurture start-ups, as well as sustainability factors such as renewable energy mix, lower emissions intensity and green initiatives.
Importance of readiness The importance of digital readiness was apparent in the survey. Logistics executives identified adoption of technology as the leading driver of economic and business growth for emerging markets. The top focus areas for their companies: technology and sustainability. Most logistics industry executives see moderate-to-strong economic growth and little or no chance of recession in 2022, even without immediate relief from the snarled supply chains and sky-high ocean and air freight rates triggered by the Covid-19 pandemic. Roughly two-thirds of the 756 industry professionals surveyed for the Index believe shippers will see cargo rates come down by the end of the year. Eighty percent see port bottlenecks, air capacity shortages and trucking issues easing by year end.
Tarek Sultan, CEO, Agility.
2022 Index Highlights: China and India, the world’s two largest countries, held their spots at No. 1 and 2 in the overall rankings. UAE, Malaysia, Indonesia, Saudi Arabia, Qatar, Thailand, Mexico and Turkey rounded out the top 10. Vietnam, No. 8 in 2021, fell to 11th, switching places with Thailand. South Africa ranked No. 24, highest ever for a country in Sub-Saharan Africa. Powerhouse exporters China, India and Mexico topped the rankings for international logistics and UAE leading in the GCC. China, India and Indonesia ranked highest for domestic logistics. In the Middle East and North Africa, rankings are: UAE (3), Saudi Arabia (6), Qatar (7), Turkey (10), Oman (14), Bahrain (15), Kuwait (17), Jordan (19), Morocco (20), Egypt (21), Iran (30), Lebanon (35), Tunisia (36), Algeria (37), Libya (50). Transport Intelligence (Ti) a leading analysis and research firm for the logistics industry, compiled the Index. “Digitization will play an important role in facilitating frictionless crossborder movements, but in the long run the benefits of globalization will only be shared with emerging markets if supply chains and logistics can be made more resilient in the face of future crises,” commented John Manners-Bell, Chief Executive of Ti.
Perfecting waste Perfecting waste collection collection
RENAULT TRUCKS C: PERFECT SOLUTION FOR WASTE MANAGEMENT APPLICATION Renault Trucks C380 P6X4 E5 fitted with 25cbm garbage compactor in partnership with RENAULT has TRUCKS C: PERFECT FOR WASTE Gorica-Farid been designed to offer theSOLUTION complete application with all the necessary features to end user both from technical and commercial standpoint. MANAGEMENT APPLICATION This truck is also equipped with superior safery garbage features compactor such as advanced emergency Renault Trucks C380 P6X4 E5 fitted with 25cbm in partnership with brake system, lane departure warning system, and tire pressure monitoring Gorica-Farid has been designed to offer the complete application with all thesystem. necessary features to end user both from technical and commercial standpoint.
This truck is also equipped with superior safery features such as advanced emergency middle-east.renault-trucks.com brake system, lane departure warning system, and tire pressure monitoring system.
ECS GROUP—WIREMIND PARTNERSHIP
ECS Group’s Cargo Digital Factory and Wiremind Cargo join forces to launch CargoTech Partnership will enhance and develop digital products both for customers
32 MARCH 2022
GSSA (General Sales and Service Agent) ECS and flight optimisation technology firm Wiremind partnered to launch a new cargo-focused digital technology developer. The two companies through ECS’ Cargo Digital Factory solutions developer and Wiremind Cargo will launch independent digitalisation-focused company CargoTech, which aims to develop new digital solutions for the air cargo industry. ECS GROUP The largest integrated GSSA (General Sales and Service Agent) worldwide. GSSAs represent airlines to commercialise air freight capacity. The company has over 95 subsidiaries and 153 offices spanning more than 50 countries. WIREMIND Wiremind is a leading Software as a Service (SaaS) provider of Revenue Optimisation and Inventory Management solutions, for the transportation (passenger and freight) and the sports & events industries. The solutions offered by Wiremind are used by market leaders and offer a blend of artificial & human intelligence to handle very large datasets, the company asserts. Wiremind was founded in 2014 and employs 50+ people in its head office in Paris.
MARCH 2022 33
ECS GROUP—WIREMIND PARTNERSHIP
France’s ECS Group’s Cargo Digital Factory and Wiremind Cargo are coordinating their digital expertise under a new technologyfocused and autonomous company CargoTech. With the launch of CargoTech, ECS Group’s inhouse solution developer, Cargo Digital Factory, and the French software and data-science company, Wiremind Cargo will focus their efforts on intelligently digitalising the air cargo industry, the company revealed through a press communique. CargoTech also supports one of the four pillars of ECS Group’s new Augmented GSA concept, comprising Commercial, Technology, Sustainability, and New Abilities. Based in Paris, France, Cargo Digital Factory and Wiremind’s newly established dedicated cargo business unit will collaborate to digitalise as many air cargo processes as possible.
Cargo Digital products Existing Cargo Digital Factory products such as its APOLLO BI & Reporting System, PATHFINDER Track & Trace solution, and QUANTUM pricing support system, and Wiremind Cargo’s shipment volume evaluation & flight planning system SKYPALLET, form the basis of CargoTech’s product portfolio. The two divisions will jointly innovate and design additional digital solutions to expand the standard product portfolio, as well as tailor individual products for all actors of the cargo supply chain: airlines, GHAs, GSAs, and freight forwarders. ECS Group and Wiremind have been business partners since June 2018. ECS became a customer of Skypallet in its early days and helped enhance the product as a key user. They both share a
34 MARCH 2022
common vision and ambition to digitalise the industry in a way that removes complexity and manual work and focuses completely on the user experience, the press note continued. “We believe that whatever can be digitised should not remain manual but are also aware that not everything can be automated.
ECS Group offers solutions for both scenarios. Whatever requires human expertise is covered by our New Abilities portfolio, whereas CargoTech takes care of automating and digitalising routine processes to reduce costs and optimise revenues while fostering innovation,” explained Cedric Millet, CEO of CargoTech.
CEDRIC MILLET joined ECS Group in 2018 as Chief Strategy and Digital Officer of CargoTech to drive the transformation of the Leading GSA. Heading ECS’ cargo Digital Factory, he brings with him 22 years of experience and expertise in the air cargo business. He started his career with Air France Cargo who then became Air France-KLM Cargo. After 13 years spent in the Franco-Dutch company (holding various positions in New York, Paris and Amsterdam), he joined Qatar Airways Cargo where he successively held the position of Vice-President, Cargo Revenue Management & Pricing based in Doha and Head of cargo – South Europe based in Paris.
Modular solutions “Under the CargoTech umbrella, we will enhance and develop digital products both for the benefit of our existing ECS Group customers, as well as for all other airlines in the world. Our solutions are modular, and customers can subscribe to one or several products as required,” he added. “Our intensified collaboration with Cargo Digital Factory will enable us to deliver more quickly on our vision of becoming a leading provider of end-to-end software solutions to the air cargo market,” asserted Nathanaël de Tarade, Chief Commercial Officer of Wiremind. “Not only will we be taking SkyPallet to the next level, but we will also be introducing new products to the market that we are developing together,” he continued. ECS Group is the world leader in GSSA business, serving airlines. in 2020 ECS Group carried over 1,100,000 tons on behalf of the airlines it represents and, in this way, contributes to their growth and development on the international stage in the air cargo sector. Founded in 2014, Wiremind offers innovative SaaS Revenue Optimisation solutions for the transportation, logistics and events industries. Wiremind is a software and data-science company that believes in tools that mix business intelligence, applied mathematics, ergonomics and software intelligence to make sense of very large amount of data.
Global Supply Chain (GSC): ECS Group’s Cargo Digital Factory and Wiremind Cargo have combined their digital expertise to conceive CargoTech. Why was it necessary to create CargoTech? Nathanaël De Tarade (NDT): For several reasons, cargo is most likely one of the least digitised industries. Yet, we believe that the freight industry is ready now more than ever: we started to witness some significant developments before 2020, but the trend has significantly accelerated since the beginning of the pandemic. Manual work is not good enough and not fast enough in an environment where things are changing overnight and where resources become scarce; CargoTech brings solutions to address this issue.
Cedric Millet (CM): The need for digitalisation in the Air Cargo sector goes beyond what Cargo Digital Factory has done for ECS Group, and the solutions that Wiremind Cargo has already delivered. Today, we are just announcing the first step, which is the creation of CargoTech that is meant to welcome more players. GSC: How is CargoTech more than the sum of its two parts? Give us the one-minute spiel on the new entity? NDT: CargoTech will generate synergies between the two brands. First of all, we are putting expert resources together who will coordinate their actions, so we definitely want one + one to equal to more than two.
NATHANAËL DE TARADE is one of the three Managing Directors and Co-founders of Wiremind, in charge of the SaaS (software as a service) activity for air freight. He has been with Wiremind for 6 years, and before that, worked for 6 years at Air France-KLM Cargo, being based successively in Paris, Atlanta (USA), Singapore, and finally Paris again.
GLOBAL SUPPLY CHAIN jointly interviewed the high-power tag team comprising Cedric Millet, CEO of CargoTech and Nathanaël De Tarade, Chief Commercial Officer of Wiremind, for the low down on the partnership between the two companies and its implications.
MARCH 2022 35
These resources are not only expert in technology, but they are also expert in the cargo business itself. People working in the Cargo Digital Factory and Wiremind Cargo have more than 50 years’ experience in the air cargo industry between them. This is a precious asset as these are precious and knowledgeable people who had experience in cargo sales, operations and revenue optimisation. They know what the processes are and how they should be improved. Besides, CargoTech will foster the awareness of the products developed by one company to the customers of the products of the other companies (and vice-versa). This will help to accelerate the adoption.
NDT: The collaboration between ECS Cargo Digital Factory and Wiremind Cargo has been designed not to target one small specific segment of the market, but to build a leading provider of solutions for the industry. Both ECS and Wiremind Cargo have business and technology knowledge, but ECS will bring its expert business knowledge of the cargo processes while Wiremind Cargo will bring its technological expertise. Another reason is that ECS’ Cargo Digital Factory and Wiremind Cargo have complementary products: we do not have to go through a painful merge of software, and we are immediately in a position to offer a range of services to the market.
GSC: Why is Wiremind Cargo a partner of choice for CargoTech? CM: We need to gather the experts where they are. There is no point starting from scratch if we can go faster by combining existing forces in a different way.
GSC: Give us a brief rundown of what current freight systems and processes you jointly plan to digitalise? NDT: We aim at offering a digital solution for every process that can benefit from technology. We are
36 MARCH 2022
speaking about booking, pricing, quoting, tracking, planning, buildup, and more. Our current product portfolio is already significant and used by leading stakeholders worldwide, but when we talk with our customers and prospects, we see there are still plenty of areas that we can help them with. GSC: What new innovative digital solutions do you plan to introduce in the foreseeable future? NDT: Some of the areas where we innovate and will keep doing so were mentioned just before, but to give you a couple of examples, we believe that pricing and capacity can substantially benefit from new technology. We will soon unveil some of the things we have been working on, whether it is advanced pricing models, overbooking forecast, capacity and revenue optimisation, etc. with the single goal of helping our customers make the best of what they sell, which is space.
GSC: How significant is technology in the cargo transportation sector today? NDT: As expressed earlier, cargo digitalisation is just starting. Make no mistake however, our goal is not to digitise just for the sake of saying that we digitise; we actually have a motto that says that whatever can be digitised should not remain manual. However, we cannot automate everything. An essential aspect to keep in mind is that digitalisation also helps to address staff shortage, which is something known to many managers who have difficulties hiring experienced staff. We believe digitalisation is useful when it brings added value in terms of revenues, cost and productivity. Betting solely on manual work is not good enough in an environment where things are changing overnight and where resources become scarce. You have to be able to deliver more to scale when demand is high, and digital transformation is a great tool to help the industry do just that. GSC: Can your combination of forces effectively a merger or acquisition? CM: CargoTech is a legal entity of its own and is being incorporated as we speak. It does not belong to either ECS Group or to Wiremind Cargo. It is an umbrella company, with shareholders that have invested equity in order to be able to buy some shares in various tech companies. GSC: What happens to the identity of Cargo Digital Factory and Wiremind going forward? CM: These identities will remain. Once again, CargoTech is an umbrella company, with shareholding in various companies. Cargo Digital Factory has its own products, that will continue to be promoted and sold under that brand name. This is the same for Wiremind Cargo and its products.
We are not doing a marketing exercise by relabeling some existing products: we are combining forces that will improve the existing products and deliver new ones. Every brand / company (Cargo Digital Factory, Wairemind cargo and others to join) will gave their own product line and road map (according to their expertise) that will be sold under the brand name that has developed it. Maybe one day these brands will disappear and be replaced by the CargoTech brand, but this is irrelevant for now. GSC: Is your industry software available internationally? How are you faring overseas and what percentage of your revenues comes from outside France? NDT: The Air Cargo market is by essence international. Although our headquarters are in France, we have most of our business outside of France, by far. As we are addressing the entire industry and intend to be a leading provider, we have no reason to limit ourselves to a single region. We already have clients in all continents, our presence and scope is definitely worldwide.
(Cargo Digital Factory, Wiremind Cargo and more to join), will sell their existing and future Digital Solutions to airlines, GHAs, forwarders and other players in all the regions of the world. GSC: How is the ongoing pandemic impacting your business? CM: The pandemic has accelerated the need to digitalisation. People work remotely, and informal interaction has reduced between individuals. The use of digital solutions has become more important to support the new way of working. Betting solely on manual work is not good enough in an environment where things are changing overnight and where resources become scarce. There is no other choice than to digitise. GSC: Are you eyeing any further mergers or acquisitions in the future? CM: In the technology sector, there will definitely be more collaboration. CargoTech will be welcoming new players very soon. Stay put for more announcements to come.
GSC: How important is the Middle East for the ECS Group? CM: Every Region is important for ECS Group, including Middle East. But we are not talking about ECS Group and its GSSA business here, we are talking about CargoTech, the companies joining under its umbrella, and the ambition it has. CargoTech has the ambition that its different brands (Cargo Digital Factory, Wiremind Cargo and more to join), will sell their existing and future Digital Solutions to airlines, GHAs, forwarders and other players in all the regions of the world.
GSC: What is the bigger vision for CargoTech with its new identity? CM: We have a very modest and pragmatic approach, but a big ambition. We created the foundation by putting together two actors of the cargo and technology sectors that have existing products. These actors will be developing new digital solutions based on their expertise, and there will be new companies joining the Cargo Tech soon. We want everyone to understand CargoTech as an enabler and accelerator of the Digitalisation and Innovation in the airfreight industry. It will have several brands, with different products.
GSC: What are your expansion plans for the region and internationally? CM: As indicated, CargoTech has the ambition that its different brands
GSC: Any other consideration to share? CM: Stay put for more announcement on the next joiner in CargoTech. Watch this space!
MARCH 2022 37
EXCLUSIVE INTERVIEW—AL MAJDOUIE LOGISTICS
The group currently operates 2000 units, including flatbed, low bed, extendable and semi-hydraulic trailers.
38 MARCH 2022
EXCLUSIVE INTERVIEW—AL MAJDOUIE LOGISTICS
Making an indelible mark in logistics in Saudi Arabia’s energy and mining sectors Group expands exponentially since its inception in 1965 to become the logistics powerhouse it is today Almajdouie Logistics continues to retain its ‘heavyweight’ name and formidable reputation in Saudi Arabia’s logistics domain.
F
rom its founding in 1965 as a single truck transport company the group currently operates 2000 units, including flatbed, low bed, extendable and semi-hydraulic trailers. In addition, the group is in possession of other types of trailers such as conventional, hydraulic, SPTs (Special Purpose Trucks) and SPMTs (Self-Propelled Modular Transporters) with terminal and storage capacity that exceeds 2 million sqm and with around 7 million MT of annual exports. Global Supply Chain exclusively interviewed Kris Brusselmans, Chief Operating Officer, Almajdouie Logistics Company, on the sidelines of the recently concluded Breakbulk Middle East 2022 held at the Dubai World Trade Centre on 28 February and 1 March.
Brusselmans fielded multiple questions and spoke on a wide range of issues relating to Almajdouie Logistics Company, its progress over the decades, its current high profile and its ambitions for the future. Global Supply Chain (GSC): Briefly, what do you attribute Almajdouie’s corporate success to? Kris Brusselmans (KB): Almajdouie’s reputation as a leader in the Heavy Lift Transport market is largely due to our focus on providing sustainable engineering solutions that go a lot further than purely moving heavy and odd size material. This expertise includes adherence to very high SHEQ (Safety, Health, Environment and Quality) standards, which form the backbone of all our operations
GSC: How strong a footprint does Almajdouie have in the energy and now possibly the emerging mining sector in the Kingdom? KB: Almajdouie Logistics has had a very strong footprint for decades in both the energy and mining sectors. The new green energy and global mining initiatives in KSA present more opportunities for our company in the future. GSC: What are your expansion plans / external partnerships for Saudi Arabia and the wider GCC? KB: Almajdouie Group has developed various partnerships (JVs, partner agreements, ventures, etc.) over the years that both extend our presence in Saudi Arabia, the GCC, and even in other continents. These partnerships span all services and Group divisions whether that be Logistics, Automotive, or others.
MARCH 2022 39
EXCLUSIVE INTERVIEW—AL MAJDOUIE LOGISTICS
GSC: In a highly regulated and demanding industry fraught with compliance requirements, how is Almajdouie ensuring that your performance threshold is set high? KB: Almajdouie has been using scorecards and processes driven from these for a long time. Business continuity and risk compliance management are embedded in every aspect of the business and include all operational and support departments. GSC: What impact are the ‘Fasah’ and ‘Nitaqat’ systems having on your operations? KB: The Fasah (Passover) and Nitaqat (points) systems are in place to support the business but will require more maturity and adoption before delivering higher efficiency results to the logistics industry. GSC: How important is sustainability and eco and environmental -friendly practices for Almajdouie? KB: Sustainability and green logistic/transport solutions are part of our DNA. Hyundai, which is part of our Automotive Division, is one of the first Hydrogen Fuel Truck global mass producers globally. We recently purchased a Hyundai Xcient Fuel Cell truck from Almajdouie Motors, the
40 MARCH 2022
Kris Brusselmans, Chief Operating Officer, Almajdouie Logistics
Almajdouie Logistics has had a very strong footprint for decades in both the energy and mining sectors. official distributor for Hyundai commercial vehicles, to help introduce this technology in the KSA market. GSC: As Chief Operating Officer, what is your vision for Amajdouie for the immediate and long-term futures? KB: Almajdouie Logistics, supported by KSA’s Vision 2030 vision, is diversifying and digitalizing its offerings whilst remaining focused on ongoing green and sustainability initiatives. This will allow us to support the growth of different sectors within KSA and the Middle East, whilst aiming to be the logistics provider of choice. GSC: How is Almajdouie maintaining its competitive edge in an industry with a highly volatile and fast-changing business landscape? KB: Whilst learning from the pandemic, we are developing
our systems and processes to be much more agile, enabling us to cope with any future supply chain disruptions and secure a stable logistic network for our partners in and outside of KSA. GSC: How important is the ‘Heavy Lift’ portfolio within the wider Almajdouie Logistics framework? KB: Heavy Lift is a major part of the Almajdouie Group’s offerings and we remain committed to supporting different industrial projects within KSA and the region. We regularly take on challenging projects that competitors are unable to, utilizing our years of experience and expertise in this area. GSC: Please elaborate one (or two) instances of the largest / biggest projects your department has worked on in this endeavour— notably Dumat Al Jandal (Al Jawf Province) and separately Aramco? KB: Almajdouie Logistics provided
EXCLUSIVE INTERVIEW—AL MAJDOUIE LOGISTICS
heavy transportation, storage, and heavy lift solutions for the Dumat Al Jandal project, which is an essential part of Saudi Arabia’s National Renewable Energy Program and supports the Kingdom’s goal to localize the production of renewable energy in line with its Economic Vision 2030. The project was a huge undertaking and careful planning was required to ensure a successful outcome. Our team enhanced a plug-and-play solution to
transport the giant components. We moved the oversized parts, which can weigh up to 81 tons, in a column of 12 trucks. To transport the rotor blades from Duba Port (nearest to the Suez Canal in Tabuk province) to the project site, we used six new 4-axle flatbed trailers with a loading platform, blade trailers, conventional trailers & L/B. The cargo’s dimensions also required us to move against traffic and modify roads after securing
permission from authorities. We completed more than 850 journeys and traveled more than 600,000 km in total. Aramco: The significant length and height of the cargo (6 units with a total volume of 10891.17 CBM) made it challenging to transport by road. There were many logistical challenges to overcome, including sharp turnings, overhead bridges, overhead signs, and overhead power cables.
Goliath Cranes for King Salman Marine Port, Ras Al Khair, Saudi Arabia
MARCH 2022 41
EXCLUSIVE INTERVIEW—AL MAJDOUIE LOGISTICS
As such, road modifications were required along the 1800 KM route from Zamil Rabigh to South Ghawar. With the permission of the concerned authorities, we widened the road at 15 locations and removed overhead signs where required. We also moved against traffic in two areas and took a longer route to avoid overhead bridges and sharp turnings. GSC: Where are you anticipating further growth to come from? KB: Overall growth in logistics will come from providing end-to-end and/or tailored logistic solutions that cover the different visibility that industrial players need to serve their clients qualitatively and efficiently. GSC: How did Almajdouie fare in 2021 relative to 2020 and what is
your outlook for 2022? KB: Almajdouie accelerated its digitalization plans during 2021 whilst keeping safety and health measures related to the pandemic high and supporting employees to cope with it. As the global economy picks up in 2022, so does the continued outsourcing trend in Saudi Arabia and elsewhere, which is beneficial for ThirdParty Logistics players such as Almajdouie Logistics. GSC: What are the opportunities and challenges for Almajdouie going forward? KB: Saudi Arabia’s Vision 2030 is all about diversification, including a greater focus on developing our national infrastructure. Almajdouie Logistics remains committed to supporting this important process, lending our expertise to help
develop key projects within the renewable energy sector, including Dumat Al Jandal and the Sakakah PV Plant. We look forward to being involved with other major projects in this sector. GSC: What is your assessment of Almajdouie’s participation in Breakbulk Middle East 2022? KB: Breakbulk Middle East provided a great opportunity for our team members to network with logisticians, exchange best practice ideas, explore potential partnerships, and gain valuable insight into the industry’s latest developments. Participating in leading events like these helps us to consolidate our connections with customers and peers, and demonstrates our continued dedication to the logistics industry.
Almajdouie Logistics at Breakbulk Middle East 2022
42 MARCH 2022
EXCLUSIVE INTERVIEW—AL MAJDOUIE LOGISTICS
For 57 years, Almajdouie Logistics has built its reputation on quality, safety, reliability, and remains committed to exceeding customers’ expectations. Almajdouie Logistics Profile Almajdouie Logistics is an award-winning company that provides integrated logistics and supply chain solutions to a diverse range of industries in the region, including petrochemical, oil & gas, power & utilities, FMCG & retail, and automotive. For 57 years, it has built its reputation on quality, safety, reliability, and remains committed to exceeding customers’ expectations. Guided by a forward-thinking approach, the company continues working towards its long-term strategic goals. Backed by a dedicated team of professionals and an extensive portfolio of assets, Almajdouie Logistics serves major clients and megaprojects in
Saudi Arabia, the Middle East, and the Far East. The Almajdouie Group, a leading Saudi Arabian conglomerate, was founded in 1965 by Shaikh Ali Ibrahim Almajdouie. Almajdouie started as a land transport company and as the business grew the firm expanded into logistics, automotive, manufacturing, food, steel, real estate, and training & education. Today Almajdouie Group operates all over the Kingdom as well as in the Middle East, North America, Europe, the Far East and Africa, employing a total of more than 5,000 people. The conglomerate also currently has interests in mining and metals.
MARCH 2022 43
SWISSLOG
Swisslog to supply modern storage technologies Swiss Federal Railways SFR partners with Swisslog to upgrade its Railway Technology Centre
S
wiss Federal Railways (SFR) is upgrading its Railway Technology Centre to become a highperformance location for modern railway technology production and central warehouse management of raw materials, railway technology components and spare parts for infrastructure facilities. With its project ‘Location Concentration Hägendorf‘, SBB is laying the foundation for the long-term expansion and modernisation of what is already the largest production and storage site for railway technology in Switzerland. An expert in pallet storage systems, Swisslog, based in Switzerland, is implementing an automated high-rack storage system for SFR as part of this project. The storage system will include a picking area and an SAP EWM (Extended Warehouse Management) environment. To this end, the automation specialist Swisslog, based in the Canton of Aargau, will supply SFR with modern high-rack storage technologies and warehouse management software, with a view to achieving full plant availability and an efficient material logistics infrastructure.
44 MARCH 2022
“As a Swiss company, we are proud to actively support the Swiss Federal Railways in setting up their new and advanced logistics processes,” asserted Heinrich Lüthi, Managing Director of Swisslog Switzerland.
Central Distribution Centre The Railway Technology Centre Hägendorf delivers 150 tons of switches, rails, signals and safety systems for the Swiss railway network per year. The integrated production and logistics site in Hägendorf, located in north-western Switzerland, with its automated storage systems serves as a central backbone to ensure security and efficiency of supply of materials needed for repairs, maintenance and expansion projects of the SFR railway infrastructure. The constant availability of the logistics infrastructure is crucial for these processes.“We can guarantee this availability for all of our intralogistics components with close to one hundred percent,” emphasized Lüthi. To this end, the intralogistics company
Heinrich Luethi, Swisslog.
has optimised all layouts in such a way that well-tried standard components are used in the mechanics and control systems and complex elements are replaced by simpler ones. Safety is another top priority. As part of Swisslog’s fire safety measures, the logistics are encapsulated and inerted with nitrogen.
Optimised layouts with SAP EWM The high-rack storage system planned by Swisslog will feature around 13,800 pallet spaces distributed over three aisles and will be operated with the help of three Vectura storage and retrieval machines. The cassette storage system for lengthy materials is single aisle and designed for 1,570 storage locations. Swisslog not only implements the SAP EWM system in the new, automated storage areas and picking zones, but will also connect existing systems, such as manually operated internal and external storage facilities, to the software platform. Go-live is scheduled for the summer of 2023.
Medium Duty Truck with Allison Automatic Transmission Benefits of having Automatic transmission. • The optional automatic transmission knows the best gear to engage in any situation and allows for quicker yet efficient and optimal cruising speeds. That means more trips per day and a boost to overall productivity. • Direct coupling “lock up” function for enhanced fuel efficiency and performance.
Wide range of choices to keep every type of business on schedule. • 3 GVW ranges from 19 – 10.4 Tones. • Up to 21 different basic configurations. • 8 & 5ltr engines with 180hp – 280hp. • Euro 5 emission levels.
GH8E Engine + Automatic Transmission + 11ton Rear Axle
Scan the QR & Contact us today
Going the Extra Mile
ETIHAD RAIL
H
H Sheikh Theyab Bin Mohamed Bin Zayed Al Nahyan, Chairman of the Abu Dhabi Crown Prince’s Court, and Chairman of Etihad Rail, and HE Sheikh Mohamed Bin Saif Bin Mohamed Al Nahyan, Vice Chairman of FAB’s Board of Directors (First Abu Dhabi Bank) recently witnessed the signing of an agreement between Etihad Rail and First Abu Dhabi Bank (FAB) for financing railway passenger transport services, with a total value of US$ 542mn (AED 1.990bn). The agreement comes as part of the UAE National Railways Programme, the largest land transport system of its kind in the UAE, where First Abu Dhabi Bank will be the Certified Lead Arranger for the loan, as part of the agreement.
The signing ceremony was attended by HE Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology; HE Mohamed Bin Hadi Al Hussaini, Minister of State for Financial Affairs; Jassim Al Zaabi, Member of the Executive Council and Chairman of the Abu Dhabi Department of Finance; Mattar Mohammed Al Tayer, Member of the Board of Directors of Etihad Rail and Director-General and Chairman of the Board of Executive Directors of the Roads and Transport Authority (RTA) in Dubai, as well as members of Etihad Rail’s Board of Directors, the Board of Directors of FAB, and a number of officials from the UAE Ministry of Finance and The Department of Finance in Abu Dhabi. The agreement was inked jointly
by Eng. Shadi Malak, Chief Executive Officer, Etihad Rail, and Hana Al Rostamani, Group Chief Executive Officer, First Abu Dhabi Bank.
‘Projects of the 50’ “Through this agreement with First Abu Dhabi Bank, we at Etihad Rail look forward to enhancing cooperation, uniting efforts, and working together towards realising the vision of the UAE in accordance with the goals of the UAE National Railways Programme, which was launched under the ‘Projects of the 50’ to establish the basis for a new stage of sustainable economic growth for the country,”affirmed HH Sheikh Theyab Bin Mohamed Bin Zayed Al Nahyan.
Etihad Rail signs financing agreement with First Abu Dhabi Bank Deal for enhancing passenger transport services valued at US$ 542mn was signed in the presence of top officials from stakeholder partners
46 MARCH 2022
ETIHAD RAIL
distinct. By connecting the United Arab Emirates through a fully integrated rail network, Etihad Rail will bring significant economic and social benefits to the businesses and communities it serves, empowering future growth and providing opportunities for all. FAB is proud to support Etihad Rail in fulfilling this important project which will drive forward economic development for our nation,”observed Hana Al Rostamani, Group Chief Executive Officer, First Abu Dhabi Bank.
Extensive rail services network “As we look to the next 50 years of our nation’s journey, the UAE continues to lead the region in setting a bold and progressive vision for the future. FAB is integral to that journey and committed to driving economic growth and improving the quality of life for citizens and residents,”asserted HE Sheikh Mohamed Bin Saif Bin Mohamed Al Nahyan. “Through our support for the Etihad Rail project, we are reinforcing the UAE’s position as a global and regional transport and logistics hub, leveraging our strategic geographic location to
improve and reinforce our links with the rest of the world,”he continued. Etihad Rail’s passenger services will be the first of its kind, connecting the cities and regions of the UAE. The project is one of the three strategic projects of the National Railways Programme, which was launched by the UAE government in December 2021.
UAE’s largest transportation system The Programme forms the largest land transport system in the UAE, which is set outline the future of the railway sector in the coming years, in addition to providing freight rail and integrated transportation services. “Through this agreement, we will move full steam ahead with our mission to provide passenger railway services, which will bolster public transport system in the UAE and the wider region,”noted Engr. Malak. “Etihad Rail is an essential component of the Gulf Cooperation Council (GCC) rail network, and this agreement brings us one step closer towards realising our strategic goals of strengthening the UAE’s reputation as a regional and global transport hub,” he added. “Etihad Rail is proof of the sense of vision and purpose that makes the UAE
With the launch of the railway passenger services, the passenger trains will strengthen connectivity between the UAE by connecting 11 cities and locations in the country from Al Sila (350 kilometres west of Abu Dhabi close to the border with Saudi Arabia) to Fujairah. Travelling at a speed of 200 kmph, with a capacity of 400 passengers per train, the number of passengers is expected to increase to reach more than 36.5mn passengers annually across the country by 2030. Passengers will be able to commute between Abu Dhabi to Dubai in only 50 minutes, between Abu Dhabi and Fujairah in only 100 minutes, between Dubai and Fujairah in only 50 minutes, and between Abu Dhabi and Al Ruwais in only 70 minutes. Etihad Rail is forging ahead towards completing Stage Two of the UAE National Rail Network. Stage One of the Network has been operational since 2016. The project is progressing at an accelerated pace with 70% of the project completed in less than 24 months, despite the challenges of the pandemic. Etihad Rail has cooperated with 180 entities and issued more than 40 thousand official papers. The project involves more than 27,000 experts, specialists, and workers operating at more than 3,000 construction sites across the UAE, putting in 76 million work hours so far using more than 6,000 vehicles and pieces of equipment.
MARCH 2022 47
TWINTEC: PREMIUM FLOORINGS SPECIALISTS TWINTEC: PREMIUM FLOORINGS SPECIALISTS
Brand Twintec makes extensive inroads in the Middle East
Twintec reinforces its reputation for producing specialist concrete floor slabs Twintec premium flooring specialists offer exceptional professional expertise and the finest products that meet the most stringent industry and client demands
T
wintec provides a personal product through a total offer concept with a high level of performance, environmental sustainability and aesthetics worldwide,” affirms Ruth Waugh, General Manager & International Business Development Director, Twintec Middle East & VP Marketing & Communications, Twintec, in this contribution to Global Supply Chain.
“The supply chain and logistics industry changes rapidly …. but when it comes to your concrete floor slab don’t consider short term
48 MARCH 2022
gains or cost savings, focus on the long term,” she asserts. According to Ruth, the following are some of the questions and issues that clients have to grapple with regard to making key industry flooring decisions. These are ‘What will your needs be in 2, 5 or 10 years? ‘Will you be leasing to different clients over a 10-year period?’; ‘Are racking configurations likely to change’? Also, what about AGVs (Automated Guided Vehicles) as a future business strategy?
On future-proofing your concrete floor slab is a critical business success factor? The influence a specialist concrete flooring contractor can have during the design and specification stages of a scheme should not be underestimated as being of great value to all parties. Design concepts, materials, methods of construction and surface tolerance requirements are carefully considered with all parties without compromising functionality and the operational
TWINTEC: PREMIUM FLOORINGS SPECIALISTS
When it comes to your concrete floor slab don’t consider short term gains or cost savings, focus on the long term.”
Ruth Waugh, General Manager & International Business Development Director, Twintec Middle East & VP Marketing & Communications, Twintec
MARCH 2022 49
TWINTEC: PREMIUM FLOORINGS SPECIALISTS
Traditional Saw Cut Straight cracks
Twintec ECO Freeplan® ‘Jointless’
Twintec® ECO ULTIMATE Totally Seamless
Saw Cuts = 7,200m
Steel armoured joints = 1470m Steel joints = 1470m
Tied day joints = 810m
requirements of the client. Within Twintec, we have our own highly experienced design team and, by working together with you, we are able to produce a value-engineered design to meet your current and future requirements. On defining investing in your concrete floor slab as a key project success criterion? Cost driven tendering and design solutions using outdated design and construction processes, will present long term problems for your business. Instead consider minimal floor slab
50 MARCH 2022
maintenance costs, reduced MHE (Materials Handling Equipment) maintenance, increased operational efficiencies and for peace of mind, insist your specialist flooring contractor provides Product Liability Insurance. Your concrete floor slab should be as innovative as your other business technologies, rather than outdated traditionally designed.
experience problems post construction. You wouldn’t ask your general practitioner health professional to perform heart surgery, you would insist on a specialist. The concrete floor is such a key element to the running of your business, you need a specialist flooring contractor with a quantifiable track record.
On avoiding split responsibility for your concrete floor slab Design, materials and construction can be a risk if specified and sourced independently and a nightmare to resolve if you
On insisting on a design solution that will deliver long term floor slab performance. Treating industrial concrete floors well does not just mean maintaining them post
TWINTEC: PREMIUM FLOORINGS SPECIALISTS
construction and implementing a well-structured concrete floor slab maintenance regime. It means making the right choice at budget setting and design/detailing stage. Investing in your concrete floor slab is the smart way forward to avoid problems later. On avoiding saw-cut joints (straight cracks) – there are ‘jointless’ and totally seamless solutions. Traditionally designed concrete floor slabs with saw-cut joints will present long term maintenance and operational problems. There are cost effective solutions that
will allow your business to operate more efficiently and significantly reduce year on year maintenance costs. On procuring your concrete floor slab to support your environmental credibility Twintec integrates sustainability throughout its businesses, and we recognise that our activities have an effect on the world we live in. Reducing environmental impact is a social responsibility to care for and protect the environment for our generation and future generations to come.
Design optimisation of the concrete floor slab is key to sustainability & supports carbon neutral targets. Functional, safe, ecologically responsible design solutions personalised for each individual project are the foundation stone. Optimised slab thickness, panel sizes, reinforcement type and material selections all contribute to achieve the lowest material consumption and longest lifespan. Twintec designs can reduced embodied carbon up to 30% compared to traditional concrete floor slab design.
Twintec integrates sustainability throughout its businesses, and we recognise that our activities have an effect on the world we live in. Reducing environmental impact is a social responsibility to care for and protect the environment for our generation and future generations to come.
MARCH 2022 51
TELEMATICS
RouteQ to meet demand for innovative delivery routing solutions in the Middle East Technology provider is to deliver assistance in addressing key delivery challenges in the region
R
outeQ, a subsidiary of Yandex and a provider of cloud-based delivery management software solutions, recently announced an expansion of its operation to the Middle East, to plug the critical gaps in the region’s delivery fleet operations, by providing comprehensive route planning and delivery tracking capabilities for today’s competitive retail, e-commerce, delivery providers, and fast-moving consumer goods businesses. Couriers are facing increased demand in the wake of the pandemic and e-commerce volume is expected to remain high for some time. Some project that the e-commerce market in the UAE will reach US$ 8bn by 2025. RouteQ believes that digital transformation will play a significant role in determining the shape of the region’s logistics market in the coming years. “The number-one challenge facing B2C or B2B organizations in the region, when it comes to moving goods and services from point A to point B, is the vague or incomplete destination address,” remarked Vladimir Nesterov, General Manager, RouteQ Middle East.
52 MARCH 2022
Long experience Yandex’s experience in mapping exceeds 15 years, and the company has built on past innovations (particularly in the field of complex algorithms) to leverage modern maps and traffic data to enable the most precise delivery in the industry, a press communique said. More than 200 parameters let enterprises optimize their routing to meet modern logistics challenges — like delivery time windows and customer self-tracking — and dramatically reduce workloads for call centers at the same time. An advanced module, built specifically for the Middle East, lets customers and delivery managers collaborate to fine-tune target locations where a more precise address is not available. These factors play a vital role in significantly reducing delivery truck mileage. Organizations can use RouteQ technology to reduce the number of vehicles used for delivery routes by 30%, which further reduces the carbon footprint and makes operations more sustainable.
Vladimir Nesterov, RouteQ.
RouteQ recently opened operations in Dubai to expand its presence in the Middle East and help regional businesses address their delivery challenges. In the coming year, Nesterov plans to expand the company’s regional sales and marketing team, as well as its implementation and support units.
SAP: SUPPLY CHAIN MANAGEMENT SOFTWARE (EXCLUSIVE INTERVIEW)
SAP Solutions enable oversight and management of each area of the entire supply chain SAP helps companies to transform in a way that is both holistic and customizable With SAP comprehensive solutions, users can manage their entire supply chain cycle in real time, including both internal to external aspects, asserts Carlos Mercuriali, Vice President & General Manager, SAP Ariba and SAP Fieldglass, EMEA South.
G
lobal Supply Chain engaged Carlos Mercuriali, Vice President & General Manager, SAP Ariba and SAP Fieldglass, EMEA South, in an exclusive, wideranging, extensive interview. Global Supply Chain: For the uninitiated, give our readers a brief, 30-second introduction / spiel on SAP Ariba and SAP Fieldglass? Carlos Mercuriali (CM): SAP Ariba and SAP Fieldglass are where the world comes to do business together. When companies connect to Ariba Network, they connect to millions of suppliers across direct and indirect expense categories. We are also the longstanding leader in external workforce management and services procurement. We integrate the entire buying process across organizations. Our platform helps customers find, source, and strategically manage their multichannel workforce.
GSC: Explain (in a nutshell) how SAP enables businesses to thrive with your proprietary signature supply chain management software? CM: Companies are increasingly realizing the competitive benefits of digitalisation. This includes digitalizing not only internal processes, but also connect digitally externally, with suppliers and customers for example. SAP’s end-to-end suite of applications and services, including supply chain solutions, allow businesses to operate profitably, adapt continuously, and compete effectively in the marketplace. With our solutions, users can manage their entire supply chain cycle in real time, including both internal to external aspects. GSC: How is ‘Rise with SAP’ impacting and benefitting procurement systems in companies (briefly)? CM: Rise with SAP can be described as a concierge service for companies’
digital transformation. It helps companies to transform in a way that is both holistic and customizable, so that they may become intelligent enterprises, enabling them to make impactful changes to run their business better by growing more resilient, more profitable, and more sustainable. GSC: Overall, how is SAP overhauling and reforming supply chains and providing procurement solutions for real-time buyers and sellers? CM: In a nutshell, by facilitating oversight and management of each area of the entire supply chain including the end customer, SAP solutions are enabling companies to adapt to changing circumstances quickly and operate more efficiently, which also translates to costs savings for sellers and quicker time to market – in other words, quicker delivery – for buyers.
SAP Ariba and SAP Fieldglass
SAP Ariba and SAP Fieldglass are where the world comes to do business together. When you connect to Ariba Network,
54 MARCH 2022
you connect to millions of suppliers across direct and indirect expense categories. We are also the long-standing leader in
SAP: SUPPLY CHAIN MANAGEMENT SOFTWARE (EXCLUSIVE INTERVIEW)
No matter the industry a business operates in, digitalizing its internal and external processes gives it a major competitive advantage over others. By using SAP solutions, businesses will be able to thrive in a highly technological environment that is evolving at a more rapid pace than ever before. GSC: SAP’s ERP and software solutions is highly customised and cuts across multiple industry verticals—Retail, Manufacturing, Distribution, Transport, Logistics, Aviation, Food and Cold Chain…comment please? CM: SAP’s Enterprise Resource Planning (ERP) helps run core processes in a single system for all departments within a company, including finance, manufacturing, HR, supply chain, services, and
CARLOS MERCURIALI SVP & GM, SAP Procurement Solutions, EMEA South Carlos Mercuriali is the Senior Vice President and General Manager of SAP Procurement Solutions for EMEA South. His team supports companies to digitally transform their procurement process to spend better, achieve savings and become more competitive and efficient. Carlos completed Harvard Business School’s prestigious Advanced Management Programme in 2018. Carlos joined SAP in 2012 as Chief Operating Officer where he fueled SAP’s growth in the Latin American market. He is an experienced business leader on cloud software applications and services and leads the Intelligent Spend Group for South EMEA. He and his team have successfully guided many customers along the path toward becoming Intelligent Enterprises. Carlos is passionate about leading high performing teams. In 2019 his region was awarded “Region of the Year” and consistently strives for the best. Most recently, his Intelligent Spend Management team in EMEA South was awarded Line of Business of the Year. Throughout his career, Carlos has advised many companies in the United States, Latin America, Europe, Africa and the Middle East. He has lived and worked in Chicago, Madrid, Miami, Buenos Aires and São Paulo.
MARCH 2022 55
SAP Ariba and SAP Fieldglass are where the world comes to do business together. When you connect to Ariba Network, you connect to millions of suppliers across direct and indirect expense categories. We are also the long-standing leader in external workforce management and services procurement. We integrate the entire buying process across your organization. platform helps customers find, source, and strategically manage their multi-channel workforce. To learn SAP: SUPPLYOur CHAIN MANAGEMENT SOFTWARE (EXCLUSIVE INTERVIEW) more about the value we can deliver for your organization, visit www.ariba.com and www.fieldglass.com.
SAP Ariba is the marketplace for modern business, creating simple, intelligent exchanges between millions of buyers and suppliers. commerce transacted annually
5.3M companies
$54.7B
$3.75T
190
24
207K
200M
212K
countries
business commerce transactions
SAP Fieldglass provides the industry’s leading cloud technology for services procurement and external workforce management.
languages
suppliers
in annual spend
179
countries
21
languages
new statements of work created
EVERY YEAR
potential new business posted new relationships created
$4.3M +115
EVERY HOUR
2.5K 505
timesheets processed new users added
procurement. As the systems are us,Network, and we have offices Riyadh, your business? Nearly 5.3 million companies are connected to the for Ariba We in help organizationsimpacting find, engage and manage all types of flexible flexible, of any size Jeddah Al-Khobar. resources – includingCM: The surge in e-commerce is andhighly more than $3.75companies trillion in commerce flows through theand Ariba contingent workers, statement-of-work-based Network annually. Why? Because everything needed to freelancers and more. Fieldglass solutions can benefit from these intelligent Inmanage line with the Saudiconsultants, Vision enabling us toSAP demonstrate the value commerce — fromtosourcing and orders through invoice connect of customers with millions of external workers worldwide. technologies help them transform 2030 and andpayment the rising importance of fully digitalised networks and — istheir theremission-critical for them, along with expertsand to help optimize the program. Morethe than 975,000 new external workers added in Q3. processes Industry 4.0, which includes supply chains to ourwere clients. They rapidly adapt to change. We help companies scale their operations easily, cut costs, and gain © 2020 SAP SE or an SAP affiliate company. All rights reserved. new efficiencies. As we live in a fast-paced world, we use the latest technologies to build future-proof cloud ERP tools, and deliver these to clients via automatic updates, while also offering them the services of a support team 24-7 to help manage the system. GSC: How significant is Saudi Arabia and how important is the Middle East for SAP? CM: SAP Middle East and North Africa is recognized as one of the fastestgrowing markets for SAP globally and is a key investment area for the company. Moreover, the Kingdom of Saudi Arabia continues to be a global leader in technology innovation and is therefore a very significant market
56 MARCH 2022
industrial internet of things and smart manufacturing, Saudi organizations and industries have been advancing their digital transformation agendas, and we are supporting these endeavours wherever possible.
can see the value of efficient supply chain management and how this can save them costs and decrease ‘time to market’. The latter is becoming increasingly significant as demand for quick delivery of products grows.
GSC: What are your short and / or longterm expansion plans for the region? CM: We have invested in people and infrastructure in the Saudi Arabia market, including setting up data centres for both SAP Ariba and SAP Fieldglass. Our digital network called the SAP Business Network has growth exponentially in the Middle East and we will continue investing on bringing more buyers and suppliers into the procurement digital transformation journey.
GSC: What trends / breakthroughs do you foresee in logistics solutions for the region in the realm of Automation, AI, Autonomous Driving, Blockchain, IoT, 4IR and what is the SAP interface in these areas? CM: In addition to digitizing a business’s connections with internal and external parties, we can help them automate functions using artificial intelligence and machine learning. As I mentioned, speed is becoming increasingly important to the consumer, so getting items to market quickly is essential, and processes such as automated responses to shortages or
GSC: How is the surge of E-commerce
SAP: SUPPLY CHAIN MANAGEMENT SOFTWARE (EXCLUSIVE INTERVIEW)
needs along the supply chain are vital to avoid delays and increase speed GSC: What have been some of your recent major accomplishments in the region? Please elaborate? CM: SAP recognizes the MENA region as one of the fastest-growing markets in the world and invests heavily in this region. SAP MENA has 12 offices in the region: 16 countries, data centres, and a regional Training and Development Centre in Dubai. GSC: What opportunities and corresponding threats do you foresee for SAP going forward and how is SAP equipped to take on and surmount these challenges? CM: Opportunities and threats in managing supply chains and intelligent enterprises arise from their need to continually adapt to changing environments and consumer attitudes. To give an example of changing business environments, the pandemic proved the need for all companies to be flexible and agile, and demonstrated how effective technology is in helping companies respond rapidly to market changes. As for the changing attitudes of consumers, we can consider as an example the increasing emphasis being placed on environmental sustainability, and fair trade an employment practices. Our research indicates that 80% of customers we surveyed said they were willing to pay a premium if the companies involved in the supply chain followed sustainable principles. In contrast, our research shows that 50% of companies do not have plans in place to tackle the issue of sustainability in supply chains, and this is where technology can help. Companies need to be able to monitor their supply chains as the majority of their carbon emissions will lie here, which is where our tracking and monitoring solutions come in. The digitally enabled visibility of the supply chain means that companies could even use their purchasing power to push all
members in their supply chain to follow sustainable practices, rather than try to trace and assess these standards retrospectively. GSC: What is your long-term vision for SAP? Where do you hope to take the company hereon? CM: At SAP we say that futureproofing our customers’ business and building systems to provide a foundation for growth and innovation is in our DNA. As such, we will continue to evolve driven by the changing needs of our customers and help them to become better-run businesses for their industry, customers and environments. GSC: Briefly, what are key takeaways / broad observations / general comment of the fallout of the ongoing Covid-19 pandemic for SAP? CM: In a world where so much is now done online, every business understands the importance of digitalization to their success. Keeping abreast of the latest technology is no longer the preserve of a select few industries and offers a competitive advantage to any business that embraces it. GSC: How is the onset of the pandemic impacting your local and regional operations? CM: We are seeing enormous growth in digitalization of companies around the world. While the benefits have long been known to many, the pandemic has been an impetus for more companies to start digitalising all aspects of their internal business as well as their external relationships and connections. They are embracing new technologies such as the internet of things and 5G networks, no matter what industry they are in. GSC: How much of your professional work environment / ecosystem in the operations realm has changed as a result of the Covid-19 virus onslaught? CM: The pandemic created bottlenecks in supply chains, with demand initially
slowing and then suddenly rapidly increasing as the situation began to normalize. Harnessing technology through SAP’s solutions can alleviate disruptions such as these. The more digitalised and connected the end-to-end components of the supply chain are, the quicker the adaption to changing demands will be. Being connected to all parties including manufacturers and other suppliers, as well as customers, allows companies to make immediate adjustments based on changes in demand, and a company can track every aspect of ‘time to market’. Companies are realising that increasing digitalization of the supply chain offers a competitive advantage, and no one can afford to be left behind. GSC: How have your priorities been rearranged and what kind of new demands / pressures are being put on your business now? CM: Due to the nature of our business, we are always looking to the future, and updating, adapting and refining our products to keep abreast of changes in the world. This agile and flexible approach was ideal for the pandemic environment. Our priorities, remain the same – offering solutions to help people, businesses, and institutions achieve economic development, social progress, and environmental impact. GSC: Talk to us (briefly) about the SAP fingerprint at Expo 2020? CM: At Expo 2020 Dubai, with its focus on innovation and technology, is an ideal home to showcase SAP’s solutions. Our 900 square meter SAP House at Expo demonstrates how realtime customer experience innovations can transform the economy, society, and environment. Inspiring innovative customer experience solutions from SAP and its partners include: an immersive tunnel, an interactive gamification of equestrian sports, the PODway platform for people of determination, and SAP Customer Checkout for retail innovation.
MARCH 2022 57
OPINION PIECE
Resilient and visible supply chain begins with embracing digital innovations The need for companies to think about resilience and visibility in supply chains was magnified by the cargo ship mishap which happened along the Suez Canal in March. The disruption it caused to the global logistics and supply chain, coupled with the impacts of the Covid-19 pandemic, highlighted the vulnerability of this sector, writes Jihad Tayara, CEO, EVOTEQ.
T
o paint a bigger picture and show why unprecedented events like the Suez Canal crisis can create a domino effect across global industries and sectors, it is first imperative to underscore the significance of supply chains. A supply chain is a network between companies and suppliers to produce and distribute products to end-users. It involves various processes such as transforming raw materials into finished goods, transporting and shipping those finished products, and distributing them to customers. A disruption in one of these crucial processes will not only impact the company, but also other stakeholders that are dependent on the supplies. The Suez Canal mishap delayed over 300 vessels carrying everything from oil to food supplies, resulting in wastage, increased price, more port congestion, and delayed raw materials, to name a few. While it has been months since
58 MARCH 2022
the crisis, it shines a spotlight on the challenges in securing a supply chain, one of which is a lack of visibility.
Visibility challenges Low visibility in supply chains is one of the many challenges faced by companies today. Valuable and perishable goods such as food and pharmaceutical supplies require tracking and visibility to ensure security and on-time delivery. Food security is a critical part of the global supply chain. Security in this context also means safeguarding the supply chain and ensuring that no disruption could lead to shortages, wastage, and food expiration. Low supply chain visibility and lack of transparency make it difficult for supply chain groups to provide consumers with fresh and adequate food supply, which is an increasing global concern. A significant amount of delay and changes in temperature for food
shipments will alter the quality of the goods and lead to wastage. Expired goods and supplies also risk the health of the consumers.
Averting challenges These challenges can be averted and minimized by investing in datadriven technology for an integrated, efficient, visible, and resilient supply chain. Visibility can aid in better management and reduced shortfall in a supply chain. Visibility in the cold supply chain is crucial as most goods require a container with a specific temperature level and on-time delivery. Tracing and monitoring these valuable shipments will give managers real-time updates on the containers’ temperature levels and allow intervention if needed, particularly if there are unprecedented delays. In addition, technology in the cold supply chain enables remote temperature control to maintain the quality of goods and prevent wastage.
OPINION PIECE
Smart Tools
JIHAD TAYARA is CEO, EVOTEQ, a UAE-based digital solutions provider. Tayara is a leader in technology and telecom in the region, bringing in his wealth of experience and expertise to spearhead the development of advanced technology solutions that increase efficiency, support business growth, and fuel digital innovation. Under his leadership, EVOTEQ has successfully achieved numerous milestones, undertaking several large-scale landmark projects— supplied biodata.
Using smart tools, sensors, IoT, and cloud storage, to name a few, enables companies to track goods from all levels of the supply chain and provide accurate data for monitoring. These interconnected devices and systems give managers real-time updates that are needed to track assets, monitor the condition of containers, and enhance security. They also help document every step in the supply chain process, ensuring end-to-end visibility from the manufacturer to the consumer, thereby, increasing the integrity of the supply chain.
Tracking and tracing Furthermore, tracing and tracking also increases efficiency and accuracy in
inventory management as every item is properly accounted for and logged, reducing the risks of fraud, counterfeit, and theft in supply chains. Technology in the supply chain is also beneficial for the workers. By leveraging smart devices, workers can have an actual vision of the operations, and this helps in preventing mishaps, injuries and accidents within the warehouse and throughout the delivery process. In conclusion, investing in technology will help achieve a robust supply chain. Supply chain groups need to embrace digital innovations and unlock the full potentials of technology towards a data-driven, safe and secure global supply chain. A fully digitized supply chain is visible and resilient, withstanding multiple challenges in incidents as in the case of the Suez Canal blockade.
Abandoned Car Carrier ablaze in Atlantic Ocean The burning cargo ship was laden with 3965 German luxury cars according to initial media reports At the time of writing, reports are coming in of a ship carrying Porsches, Audis and Bentleys from Germany to the USA has caught fire near the coast of Portugal’s Azores islands in the Atlantic Ocean. The 22 crew members on board the Felicity Ace abandoned the carrier when the fire broke out, with no one hurt, Portugal’s Navy said in a statement. Though still floating in the Atlantic Ocean, it is not clear whether the cars are damaged. An internal email from Volkswagen USA stated that the ship was carrying 3965 vehicles of the VW, Porsche, Audi and Lamborghini brands, German newspaper Handelsblatt reported. German super luxury cars Around 1100 Porsches and 189 Bentleys were on board, spokespeople for the car brands said.
Audi, another Volkswagen brand, confirmed some of its vehicles were also on board but did not state how many. Volkswagen did not confirm the total number of cars on board and said it was awaiting further information. Mitsui OSK Lines Ltd, the operator of Felicity Ace, said it has commissioned a salvage company to assess the situation. An initial team arrived in the Azores and was expected to reach the ship on 25 February. ‘Further salvage assets are being readied to attend the vessel,’ the company said in a statement. ‘MOL will make every effort to contain the damage and resolve the situation as the main priorities’, the statement continued. The Panama-flagged ship was travelling from Emden, Germany, where Volkswagen has a factory, to Davisville, Rhode Island in the US, according to the Maritime Traffic website.
MARCH 2022 59
OPINION-EDITORIAL
Exploring Green Transportation Systems Global warming and modern transportation go hand in hand UAE continues to make strides towards achieving its 2050 net zero goals, initiatives ranging from shifting to lowcarbon energy to adopting green transportation methods as the country formulates specific green measures and timetables to fulfil its goals asserts Yousif Ahmed AlYousif Ahmed Al Mutawa, Mutawa, Chief Executive Officer, Sharjah Sustainable City. CEO, Sharjah Sustainable City.
T
here is no doubt that transportation has significantly contributed to elevating the level of air pollution which has consequentially resulted in a mounting concern about the detrimental effect of transportation on the environment and social sustainability. In many ways, global warming and modern transportation go hand in hand. The life-changing technological advances that resulted in new modes of travel are the same technologies that have contributed to the wide-scale pollution of the planet. As machinery began to replace manual labour, the use of fossil fuels, such as coal and oil, for power increased, making the transportation sector the second major source of greenhouse gas emissions. The challenge is to promote healthy and sustainable transport alternatives to prevent the negative effects of transport systems on human health. An important way to do this is to ensure that health issues are clearly on the agenda when transport plans are being formulated especially at the design stage of any sustainable infrastructure which is of vital importance in rural and urban areas.
Sustainable developments Similar to sustainable developments, which are being designed to be more resource-efficient and longer lasting, there are also methods to build roadways to
60 MARCH 2022
be sustainable, resilient, and benefit the surrounding community and ecosystem. This includes integrating land-use and transport planning which both are key in enabling activity to help reverse the trend toward automobile-based urban sprawl by starting with what is called a ‘green infrastructure’. A green infrastructure should integrate health, environment and other social concerns which requires high-level commitment to intersectoral cooperation, from the power grid to water management to traffic and transit that should be upgraded to support lower emissions and better air quality. In addition, infrastructure designs and urban landscaping should set the footprint for a diverse ecosystem, support urban farming, and green mobility. In the recent years, GCC countries have directed their efforts towards adopting smart mobility technologies creating advancements in logistics practices, transportation system efficiency and environmentally friendly urban mobility.
Retrofitting and redevelopment This is where the retrofitting and redevelopment to smart green cities is crucial as it illustrates a new planning paradigm for sustainable transportation that incentivizes communities to use environment-friendly and energy-efficient modes of transportation such as electric-
and hybrid-powered vehicles, vehicle sharing, and micro-mobility such as scooters and bicycles. The objective is to reduce the carbon footprint of transport, mitigate the negative effects of land uptake and fragmentation, and boost opportunities to better integrate land while keeping social, economic, and environmental sustainability at its core.
Sharjah Sustainable City Sharjah Sustainable City has been at the forefront in the development of sustainable mobility solutions such as having an extensive network of walking and cycling paths to promote an active lifestyle and clean mobility. This includes 11.8 kms of rubberized jogging tracks, 1.6 km cycling tracks, 8.4 kms of pedestrian sikkas, smart charging stations and driverless EV shuttle; all presenting a working model of how cities of the future will look, with TSC in Dubai as a great success story to follow and improve upon with community farming, shared sporting facilities and open areas. The development of sustainable cities with a green infrastructure can create opportunities for sustainable and green mobility systems that in return will have significant effect on the economy, environment, and communities while building long-term resilience and growth for the United Arab Emirates.
CUSTOMIZED IN-HOUSE SOLUTIONS FOR YOUR BUSINESS automotive logistics
fashion logistics
healthcare logistics
LET’S DO BUSINESS! gordon.barnard@hellmann.com www.hellmann.com
FIND, DON’T SEARCH! WAREHOUSE MANAGEMENT SYSTEM BY EPG – CHALLENGE YOUR INVENTORY TO BE RELIABLE AND EFFICIENT!
“Within a very short time after going live, we have been able to meet the required accuracy and also double our picking performance.”
DOWNLOAD WHITEPAPER
Yazan Darwish, General Manager Sales at Hala Supply Chain Services
Up to 35%
faster order processing Up to 100% stock accuracy Up to 30% better space utilization in the warehouse
www.epg.com
