July – August 2020 Issue 71
ENHANCING THE BUSINESS OF LOGISTICS
SOHAR Port
Soaring ambitions
GCEC
Tops in Telematics
NAFL
Industry perspectives in pandemic times
Tranzone
Going hot on the Cold Chain
TURKISH CARGO CONTINUES TO RISE. TURKISH CARGO BECAME THE ONLY AIR CARGO BRAND TO HOLD IATA CEIV PHARMA, IATA CEIV ANIMALS AND IATA CEIV FRESH CERTIFICATIONS, ONE OF THE MOST PRESTIGIOUS CERTIFICATES FOR THE AIR CARGO INDUSTRY.
turkishcargo.com.tr
’
SOHAR Shining 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 handbook 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.
The strategically-located and natural deep sea Port of Sohar (and its adjacent Free Zone), in the centre of the Batinah Region in North Oman is one or the fastest growing ports in the world that has attracted tens of billions of US dollars in investment and continues to be a magnet for new manufacturing, large-scale infrastructure businesses. Located at almost a half-way point between Dubai in the United Arab Emirates and Muscat, the capital of the Sultanate of Oman, the entrepôt is a rapidly becoming major hub and transshipment point for cargoes headed to the Southern Gulf and the adjoining hinterland. The Port continues to move full steam ahead under the prudent economic policies of HM Haitham Bin Tariq Al Said, the Sultan of Oman. As part of our extensive coverage of this Cover story for this edition, Global Supply Chain conducted an exclusive and expansive interview with Mark Geilenkirchen, CEO, SOHAR Port & Freezone, on a wide range of issues. Read on for the low down. There is no doubt that the regional (and global) logistics and supply chain industry is impacted by the all-pervading pandemic, which I am loath to identify by its alpha numeric name. It has impacted virtually every facet of business and industry sector. We engaged (virtually of course) with Nadia Abdul Aziz, the dynamic and vivacious two-time President of the National Association of Freight and Logistics (NAFL) for macro insights on the state of this important UAE association body and her perspectives on how the industry is coping with the challenge and vicissitudes wrought by the pandemic. We also highlight how individual companies are fighting back and strategizing their comebacks in pandemic times. We come up close and personal with Matthias Hoewer, General Manager Middle East & Africa, SSI Schaefer; Biju Joseph, Operations Manager, Tranzone and Gaurav Biswas, Founder-CEO, TruKKer, for their viewpoints on select relevant subjects related to but not limited by the current circumstances. They explained individually in separate reports how they are getting round to bypassing and even overcoming the upheavals as the industry gets pummeled by adverse economic fallout in the light of the ravaging pandemic. These are narratives of hope, sagacity and rising to the occasion. This is clearly a reflection of the industry’s resilience and holds optimism, innovation and promise for the immediate and long-term futures. Also in here is our regular mix and menu of stimulating content—so go feed on our carefully curated editorial and content offerings. Do check it out.
Happy reading! Malcolm Dias
Editor malcolm@signaturemediame.com
JULY – AUGUST 2020 3
July – August 2020 Issue 71
22
SOHAR Port & Freezone The Sultanate of Oman’s premier port is holding up fine
49 Proven Consult
Anas A. Abdul-Haiy, Director and Deputy CEO, on the impact of the pandemic on supply chain operations.
08 NEWS 30 GPCA
50 Thought Leadership
32 GCEC Trading
53 Autonomous Vehicles
The GCC chemicals sector must plan and prepare for post-pandemic period. Telematics and monitoring solutions to the fore.
36 NAFL
An exclusive with Nadia Abdul Aziz, President, sheds fresh light on the UAE national logistics industry.
42 TruKKer
Gaurav Biswas, Founder-CEO, holds forth on the region’s first technology enabled truck aggregator.
46 Tranzone
Biju Joseph, the company’s Operations Manager on the new operational normal landscape in the shadow of the pandemic.
4 JULY – AUGUST 2020
Covid19- has validated the criticality and strategic importance of supply chain management, opines Tom Craig, our regular contributor. UAE ranks in top 10 on 2020 Global Autonomous Vehicles Readiness Index.
54 GCC Food Security
Food security is a collective responsibility affirms Satvik Jaitly, Consultant, Food & Nutrition, Frost & Sullivan.
55 Maersk TradeLens
The Maersk-developed TradeLens is all set to digitize global supply chains.
56 SSI Schaefer
Company is all set to combat the pandemic and its fall-out.
PERFORMANCE AND RELIABILITY
Discover the IVECO world and all its news on: www.iveco.com, Middle East area. Or call now the IVECO Representative Office: 00971 4 2994935 HI-RELIABILITY Robust frame in flexible, high- yield-strength steel
HI-PERFORMANCE Euro III and13 litre Cursor 13
HI-VERSATILITY Wide range, can be converted for any application
HI-COMFORT & ERGONOMICS New dashboard with ergonomically positioned, easy-to-reach switchgear
MAKING EVERY JOB POSSIBLE. TRAKKER redefines the meaning of impossible and enables you to work on impenetrable, broken terrain, and tackle constant stresses with extraordinary performance.
New autonomous ITVs to boost operational efficiency at Jebel Ali Port n DP World, UAE Region and the autonomous vehicle, robotics and AI specialist DGWorld has entered a contractual agreement to equip Jebel Ali Port with a fleet of Autonomous Internal Terminal Vehicles (AITV´s), including all related integrations in the existing operation processes and infrastructures. The contract signed between the two sides states, DGWorld will deliver and integrate their autonomous technology at the existing ITV fleet in multiple phases, with the goal to further increase the overall efficiency of the terminal and reduce the overall size of the currently used fleet, at the same time. “At DP World, UAE Region, we employ today’s frontline technologies such as robotics, automation, Internet of Things, among others to build and
sustain our efficiencies. Digital technology will continue to drive smart trade for DP World,
UAE Region,” commented Mohammed Al Muallem, CEO and Managing Director, DP
AITVs add more smart capabilities to the integrated operation processes of DP World, UAE Region.
World, UAE Region. “We are investing heavily in the best Minds, Practices and Resources to develop those Applications & Technologies to match their operational requirements based on the highest international standards and now we are moving stronger to expand our current operations locally and globally with the support of DP World,” remarked Bilal Al-Zoubi, Founder & CEO, DGWorld Previous trials of this new technology have shown that it is capable to unlock new potentials for efficient and economical automation of already existing Container Terminals in combination with the intensive utilization of new AI-based software solutions, which have been integrated jointly by the teams of both parties.
DP World launches digital platforms to move global trade online n DP World has recently
launched cutting-edge online logistics tools and services, covering sea, land and air shipping around the world. The connected ecosystem of platforms will enable freight forwarders and any business, to book shipments of cargo from and to anywhere in the world, by any combination of sea, land and air. The initiative represents a major step forward in digitizing the management of logistics to increase the efficiency, visibility and the resilience of global supply chains. DP World has accelerated the 6 JULY – AUGUST 2020
already planned roll-out of the platforms to help companies meet the challenge of the Covid-19 crisis and keep trade flowing including vital food and medical supplies. The initiative follows DP World’s acquisition of SeaRates. com, a digital platform that enables customers to transport cargo worldwide at the click of a mouse, along with LandRates. com and AirRates.com. DP World has also created the Digital Freight Alliance which is an online association that brings freight forwarders globally onto one platform, giving them access to new
tools, routes and services, and enabling them to do more business anytime anywhere. “The pandemic has demonstrated that we must do all we can to make supply chains stronger to keep trade flowing, even in times of unprecedented challenges for the world,” remarked Mike Bhaskaran, CEO—Logistics and Technology, DP World. “This technology is a direct business enabler. Digitizing trade will help companies do more business, more efficiently,” commented Sultan Ahmed bin Sulayem, Group Chairman and CEO, DP World.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World.
Dubai’s Mina Rashid all set for a transformational maritime makeover n P&O Marinas, a DP World Company, has recently signed a strategic collaboration agreement with Pindar Yacht Management (PYM), for the development of a water sports academy, a recreational club, an exhibition space and a range of associated marine leisure services and facilities. Under the agreement, PYM will bring its experience as an international sailing business and brand to support the transformation of the P&O Marinas facility into a worldclass recreational hub for the sport and the wider yachting industry, a press communiqué from DP World has revealed. In addition, PYM will organize sailing and promotional activities using its two Volvo
Ocean Race Yachts, customized and branded to P&O Marinas’ marketing purposes. The yachts, Mina and Marina, will be moored at Mina Rashid Marina. Mina Rashid Marina has a track record of growth in the UAE as a Regional Marine Community hub. The main driver of which is P&O Marinas’ desire to develop this important segment of the market, especially in terms of infrastructure, as well as supporting the promotion of Dubai as a global destination for tourism. “The partnership between P&O Marinas and Pindar Yacht Management sets the stage for the next phase in the development of Mina Rashid Marina, and provides a
boost to our on-going work of transforming it into the region’s largest and best superyacht destination,” affirmed Mohammed Al Mannaei, CEO, P&O Marinas and Executive Director, Mina Rashid. ”Pindar Yacht Management is very much looking forward to being part of the process with P&O Marinas to develop Mina Rashid Marina as a true global yachting destination,” asserted Andrew Pindar, Chairman, Pindar Yacht Management. Following Mina Rashid Marina’s success in attracting some of the world’s largest yachts over the last few seasons, P&O Marinas has extended its management and operations to an additional four marinas across Dubai, creating lifestyle
destinations for yachting enthusiasts. The team is currently revisiting the calendar of sailing events for this year so that P&O Marinas is able to welcome the world’s international regattas across their marinas, once the racing is able to resume.
Mohammed Al Mannaei, CEO, P&O Marinas and Executive Director, Mina Rashid.
Emirates carries cargo on passenger seats n In the wake of the pandemic,
countries around the world have witnessed an increase in the demand for essential commodities such as personal protective equipment and medical devices. However, with limited air cargo capacity available due to suspension of the majority of passenger flights, air cargo carriers have had to innovate to optimize capacity on cargo flights. Since mid-April, Emirates SkyCargo has been transporting cargo on the seats and the overhead bins inside the passenger cabin of its Boeing 777-300ER aircraft. Placing cargo inside the aircraft cabin allows Emirates SkyCargo
Emirates SkyCargo optimizes cargo capacity. of flight operations. to transport more goods per For example cargo containing flight, helping urgent cargo liquids and valuable cargo are reach their destinations faster some of the goods that are not and allowing for more efficiency
allowed to be loaded on the passenger seats and overhead bins. Most perishables such as fruits and vegetables also have to still be loaded in the bellyhold of the aircraft. Any cargo that is loaded inside the passenger cabin has to be packaged inside a suitable external container such as a plastic or cardboard box in accordance with the latest regulations outlined by IATA. “Emirates SkyCargo has operated close to 150 flights globally with cargo in the passenger cabin to date and the cargo that most frequently gets priority to be loaded on,” remarked Henrik Ambak, Emirates Senior Vice President, Cargo Operations Worldwide. JULY – AUGUST 2020 7
Etihad lands in Cuba for the first time
An Etihad Airways Boeing 777-300ER at Havana Airport.
n Etihad Airways has operated its first ever flight to Havana, Cuba. The goodwill flight, chartered by the Government of the UAE, landed in the capital of the Caribbean island nation, carrying Cuban nationals returning home from the UAE. Havana is the latest addition to an expanding list of special
charter flights to destinations not normally served on the airline’s global route network. Following the suspension of all normal passenger flights to and from the UAE on 24 March, Etihad has operated special humanitarian services to 32 cities around the world, all of which are not currently served
by the airline’s passenger or cargo network of flights. These include Bogota, Bucharest, Grozny, Kiev, Harare, Kinshasa, Moroni, N’Djamena, Niamey, and Nouakchott. The airline recently operated a special humanitarian flight carrying essential medical and humanitarian cargo bound for
the Palestinian Territories.“We have been able to move with agility and fly to territories never served by us prior to the current global lockdown, so we can aid in the repatriation of people,”said Ahmed Al Qubaisi, Etihad Aviation Group Senior Vice President Government, International and Communications.
Abu Dhabi Ports launches ‘Safeen Feeders’ shipping service n As part of its strategy
to facilitate growing trade demands within the Gulf region, Abu Dhabi Ports today announced the establishment of a new feeder services company, ‘Safeen Feeders’ ‘Safeen Feeders’ will introduce a new feeder service linking Abu Dhabi to ports serving the UAE, the broader Gulf region and Indian SubContinent. The service will be executed in partnership with Bengal Tiger Line (BTL), one of the world’s most renowned feeder service operators, through a vessel sharing agreement. The service will allow for a timely and efficient exchange of container cargo between mainliner vessels and the 8 JULY – AUGUST 2020
ADPorts - Feedering services. vessels within the rotation calling at nine regional ports located across the UAE, Saudi Arabia, Bahrain, Pakistan, and Western India. “With the addition of the new
service, our shipping clients can expect efficient and costeffective transhipment feeder solutions with ever-expanding regional and international reach and connectivity,” commented
Captain Mohamed Juma Al Shamisi, Group CEO, Abu Dhabi Ports. “We are excited to be partnering with Abu Dhabi Ports in developing feeder solutions for the region and look forward to jointly promoting ‘Safeen Feeders’ services in conjunction with our own BTL brand,” remarked Bill Smart, Chief Executive, Bengal Tiger Line. ‘Safeen Feeders’ pendulum service, called the UAE-Indian Sub-Continent Gulf Service (UIG), will be delivered by three 2,700 TEU vessels (nominal capacity) via the following 21-day rotation calling: Khalifa Port; Jebel Ali Port; Karachi; (Kandla); Mundra; Nhava Sheva; Khalifa Port; Jebel Ali Port; Bahrain; Dammam; Jubail; and, Khalifa Port.
WHO GIVES YOU THE COMPLETE STORAGE SOLUTION? SSI Schaefer is the total solution provider in Intralogistics. Your one-stop shop for warehouse storage and automated systems needs in the MEA region and worldwide. P.O. Box 37600 Dubai Logistics City – Plot WB54 | Dubai South, Dubai United Arab Emirates | 8100 804 4 971+ | ssi-schaefer.com
Construction works for Strata’s JV with Solvay in Al Ain completed n Strata Manufacturing (Strata), the advanced composite
aero structures manufacturing company wholly-owned by Mubadala Investment Company, has completed works on the Strata Solvay Advanced Materials (SSAM) hightech facility in Al Ain, a joint venture with Solvay, Belgium’s materials and chemicals company. The completion of the SSAM facility heralds the beginning of Strata’s diversification journey, with the Al Ain manufacturer now the Middle East and North Africa (MENA)’s first supplier of aerospace-grade pre-impregnated carbon fibres and the fourth globally. The completion of the facility also marks a new chapter in Abu Dhabi’s drive towards a sustainable home-grown manufacturing sector. The 8,500sqm SSAM facility is currently being equipped with the latest technology and machinery prior to the testing and qualifying of processes designed to supply carbon fibre pre-preg materials for primary structure applications in Boeing’s 777X programme. Key appointments for UAE nationals have also been made. Khalid Al Nuaimi, a Strata engineer, will head the Strata Solvay project and manage communications between the two companies. Ghubaisha Al Ameri, currently a Quality Engineer at Strata, will also transition to the new team. “This latest milestone achieved by Strata’s ‘Made with Pride in the UAE’ success story is a testament to Mubadala’s growth strategy,” asserted Badr Al-Olama, Chairman, Strata and Head of Aerospace, Mubadala. “The completion of the SSAM facility signals a new era for the region’s aerospace sector and cements the UAE’s global aerospace manufacturing capabilities,” affirmed Ismail Ali Abdulla, CEO, Strata, who will be Chairman of the Board, SSAM.
The SSAM facility in Al Ain.
10 JULY – AUGUST 2020
Qatar Airways Cargo ships one million kilos for charities for free
A Qatar Airways Cargo freighter.
n The initiative is the first chapter in an ambitious sustainability project called ‘We Qare’ Qatar Airways Cargo is committed to helping people in need through its ‘1 Million Kilos’ campaign. From July to the end of December of this year, charities will be able to use the services of Qatar Airways Cargo to transport humanitarian aid and medical supplies all over the world, free of charge, according to a recent press communiqué from the carrier. Such action is unprecedented in its scale. Qatar Airways is donating 1 million kilos of freight to selected customers around the world to give to the charities of their choice. This will allow the movement of medical equipment, humanitarian relief and essential products to where they are most needed, free of charge.
“This action was triggered by the Covid-19 crisis. The pandemic is a tragedy for millions of people, and we looked for ways how we, as an airline, could help those in the greatest difficulty. This solution – shipping one million kilos of cargo free of charge – is a firm commitment for QR Cargo,” remarked Guillaume Halleux, Chief Officer Cargo, Qatar Airways. ‘1 Million Kilos’ is the first chapter in an ambitious sustainability project called ‘We Qare’, built on the four fundamental pillars of sustainability (economy, environment, society and culture. ‘We Qare’ is a series of concrete air cargo actions designed to create a positive impact on the industry and the world, the press release concluded.
Be Part of a Leading Network Group for Training & Networking
SCHOLARSHIPS FOR DESERVING UAE NATIONALS
Legal advocacy
Use of FIATA Documents
Talent Connect Worldwide, E-Learning.
NAFL, P.O.Box: 60944, Dubai, United Arab Emirates
NAFL National Association of Freight & Logistics
P.O. Box 60944 Dubai, United Arab Emirates Tel: +971 4 3431112, Fax: +971 4 3431105, Mobile: 00971507802631 E-mail: shankar@nafl.ae www.nafl.ae
LogiPoint reinforces Jeddah as the preferred regional logistics hub n LogiPoint has established the first bonded corridor connecting the Bonded and Re-Export Zone at Jeddah Islamic Port and King Abdulaziz International Airport (Jeddah) to facilitate the multimodal movement of cargo. Thanks to this initiative seamless and efficient transshipment is a major advantage for cargo consignments in the Kingdom and the region The trial was conducted on a shipment that arrived by sea freight to LogiPoint Bonded and Re-Export Zone at Jeddah Islamic Port then shipped onward to its final destination in the Netherlands by airfreight through King Abdulaziz International Airport. With the support of other multiple stakeholders such as Saudi Customs and Jeddah Islamic Port and in line with ‘Vision 2030’ and the ‘National Industrial Development and Logistics Programme’ (NIDLP),
An aerial view of LogiPoint’s facilities at Jeddah Islamic Port. the success of this shipment increases the competitiveness of the region, it was revealed. It creates an efficient and costeffective sea-air and air-sea link to establish Jeddah as a preferred multimodal transshipment hub. “The bonded corridor facilitates trade for customers
by providing a multimodal bonded access to regional target markets combining sea, land and air freight. It also gives Jeddah a significant advantage to compete in the transshipment cargo segment,”affirmed Farooq Shaikh, CEO, LogiPoint. LogiPoint is making continued
and dynamic efforts to introduce international concepts and solutions towards enhancing logistics efficiency to attract foreign investors. Its strategic location and the world-class facilities have fortified the position of Jeddah Islamic Port as a major and premier logistics hub.
Technology leaps in Saudi logistics and road freight sector n TruKKer, the largest digital road freight platform in MENA, and Saferoad, Saudi Arabia’s leading telematics solutions company have joined hands in an exclusive partnership and collaboration to add strategic value to the regional road freight sector. TruKKer is the one of the region’s fastest growing technology start-ups in the logistics and mobility space. Saferoad is among the top telematics solutions companies which received early investment from Aramco’s venture fund, Wa’ed. The collaboration will be focused on creating state of the art technology and solutions that will enhance cargo security, ease of 12 JULY – AUGUST 2020
TruKKer
transportation management and significant utilization improvements in the road freight sector. “We are very excited to collaborate with Saferoad after evaluating multiple telematics solutions providers in the region. They bring the right
mix of hardware knowledge and quality along with agile start-up like software solution building capabilities”, commented TruKKer’s Founder & CEO, Gaurav Biswas. “Saferoad has been in the forefront of the telematics solutions sector with industry
leading products subscribed by thousands of assets in the Kingdom’s mobility sector. We are thrilled to partner with TruKKer that creates direct commercial opportunities for our existing and future clients,” stated Mohannad Alhaj, Founder & CEO, Saferoad.
KIZAD breaks ground on the largest rest, refuelling facility n The Khalifa Industrial Zone Abu Dhabi (KIZAD), a subsidiary of Abu Dhabi Ports and the Middle East’s largest industrial zone, broke ground for a new dedicated Truck Plaza, comprising refuelling and rest facilities with the Industrial Zone. The ground breaking event took place in the presence of Ahmed Al Shamsi, Acting CEO, ADNOC Distribution, and Samir Chaturvedi, CEO, KIZAD. The plaza, covering an area of more than 87,000 sq metres, roughly equal to 12 soccer fields, will cater to the needs of workers and visitors at KIZAD’s growing industrial zone. It will include a first-ofits-kind dedicated ADNOC Distribution service station for trucks, comprising two main canopies and six diesel bay canopies, and a community centre with 275 shaded truck, bus and car parking spaces. It will also house several retail outlets, including a convenience store,
restaurants, a car care service, and a mosque. The project is a significant step forward in providing truck drivers and workers within KIZAD with refuelling and rest facilities. “KIZAD Truck Plaza is another important milestone in realising KIZAD’s vision to support all of its customers and the community across Abu Dhabi’s industrial and logistics supply chains,”
remarked Abdullah Al Hameli, Acting Head of Industrial Zones Cluster, Abu Dhabi Ports. “This dedicated service station will be an important milestone in our journey as we continue to drive the sustainable economic vision of the UAE and keep our essential customers moving,”commented Ahmed Al Shamsi, Acting CEO, ADNOC Distribution. The truck plaza will include a
restaurant for heavy duty vehicle drivers, a convenience store, four additional quick service restaurant outlets, as well as lube and vehicle washing services. The plaza will also include two utility buildings and has provision for a 1000 square metre mosque. Follow on enhancements to the truck plaza may include a dedicated overnight rest area for drivers and additional comfort facilities.
KIZAD Truck Plaza ground breaking ceremony.
KIZAD unveils new development of warehouses, showrooms and industrial units n Khalifa Industrial Zone
Abu Dhabi (KIZAD) recently announced breaking ground for its new products for supporting the increasing demand for prebuilt facilities in KIZAD. The range of small-tomedium light-industrial warehousing units comprise the fourth, fifth, sixth and seventh phases of the KIZAD Logistics Park and are set to be introduced to the market starting from the end of the year to cater to increasing customer demands for additional ready to move facilities. “Customers are looking for flexible and asset-light options, and we are expanding our portfolio to address these needs through the launching of a new modular, pre-built units in various sizes and
configurations,” asserted Abdullah Al Hameli, Acting Head of Industrial Zones Cluster, Abu Dhabi Ports. New developments in KLP 4 and KLP 5 span total plot area of approx. 250,000sqm, and offer a range of mixed-use warehousing and light industrial units. These comprise of 26 showroom warehouse units (24 units of 795sqm and two units of 1,920sqm) and 88 smallto-medium light-industrial and warehousing units (76 units of 500sqm; six units of 1,000 sqm; one unit of 1,666 sqm; and six light industrial units of 1,028sqm). Further, KLP 6 & KLP 7 offer dedicated plots spanning a total of 330,000 sqm, housing 20 large terraced units, each with an individual floor space
of 2,500sqm, while KLP 7 will feature 56 medium lightindustrial and warehousing units. Located in KIZAD Area A, all modules will be equipped with raised floors, open loading yard access for trucks and forklifts, ample on-site parking will include their own office area with toilets and kitchenettes.
KLP’s launch is the latest in a series of recent developments announced by the Middle East’s largest industrial zone. Earlier this month, KIZAD broke ground on a dedicated Truck Plaza, the largest in the region, to meet the needs of truck drivers and the zone’s growing industrial community. JULY – AUGUST 2020 13
SOHAR reports surge in cargo throughput for Q1-2020 n SOHAR Port and Freezone has reported an increase in cargo volume and a significant performance for Q1-2020. Break bulk rose to 18% and liquid bulk to 2%, as compared to Q1-2019. The Port also saw a 4% increase in vessel calls, standing at 825 and a 15% increase in anchorage calls. Moreover, ship-to-ship (STS) rose by 90% during the same period. “With the implementation of our business continuity plan and together with the efforts of our marine team, we have been able to effectively manage the shipping goods and logistic operations,
while simultaneously keeping in mind the highest levels of safety at all our facilities,” remarked Mark Geilenkirchen, CEO, SOHAR Port. “Complementing the Port, SOHAR Freezone also achieved positive performance in Q1-2020, as construction works on eight new projects have begun, which were signed last year. Several of those projects are also expected to be operational by the end of this year,” commented Omar Mahmood Al Mahrizi, CEO SOHAR Freezone.
Agility assists businesses ramp up online sales
Henadi Al-Saleh, Agility Chairperson and leader of Agility’s logistics
n Agility and two associate
partner companies moved to help retailers and small businesses start or grow online sales through efficient, easy-to14 JULY – AUGUST 2020
build digital stores and easyto-use shipping, fulfillment and delivery services. The partnership teams ExpandCart, one of the Middle East’s leading e-commerce enablers, with Shipa, Agility’s digital innovation arm. ExpandCart lets small businesses and retailers move online quickly by building branded stores in English and Arabic, then plugging into the simple Shipa platform so they can manage first-mile, fulfillment, freight movements, customs clearance and last-mile deliveries. Henadi Al-Saleh, Agility Chairperson and leader of Agility’s logistics venture strategy, said the partnership would help traditional retailers
and others that have seen store traffic, in-person sales and overall revenue plummet as a result of the pandemic. “E-commerce and logistics have become lifelines to consumers who are confined at home and to businesses that have lost all or part of their in-store revenue,” commented Al-Saleh. The Agility partner group – Shipa Ecommerce, Shipa Delivery and Expand Cart, can help merchants and social sellers with no technical expertise establish online stores in as little as a couple of hours and choose their own shipping, fulfillment and delivery solutions so they can get up and running right away, Agility said in a press statement.
Shipa Ecommerce gives online merchants easy access to some of the world’s fastestgrowing and most complex e-commerce markets. Shipa Ecommerce offers integrated freight, fulfillment, delivery and returns solutions across the Arabian Gulf, with additional reach into the EU and Africa in the near future. Shipa Delivery offers businesses and consumers on-demand same-day, next-day or cross-border delivery across the Arabian Gulf. Intuitive and easy-to-use, the platform is accessible by mobile or directly integrated with its business customers’ systems, and provides solutions to optimize for speed, convenience, and affordability.
Abu Dhabi Terminals receives five new Ship-To-Shore Cranes n As part of its ongoing expansion efforts, Abu Dhabi Terminals (ADT) recently announced the delivery of its latest batch of Ship to Shore (STS) cranes. Abu Dhabi Terminals is the Management Company and operator of Khalifa Port Container Terminal (KPCT), the region’s first semi-automated terminal and one of the most technically advanced. The five new cranes each with a 73 metre reach, 52 metre height and a lifting capacity of 90 tonnes are integral to ambitious plans that aim to increase capacity at KPCT to 5 million TEUs (twenty foot-equivalent units) by the end of 2020. The STS cranes are among the largest in the world and will play a key role in ADT’s technologically advanced operational ecosystem at Khalifa Port, the flagship semi-automated deep-water port owned by Abu
ADT has taken delivery of Ship to Shore (STS) cranes. Dhabi Ports Group. “Abu Dhabi Terminals at Khalifa Port is well positioned to complete its expansion in record time and ahead of schedule, validating our commitment to becoming one of the leading container terminal operators in the world,” commented Captain Mohamad Juma Al Shamisi, Group CEO, Abu Dhabi Ports and Chairman of Abu
Dhabi Terminals. “The purchase and delivery of these cranes demonstrates how continued investment in our infrastructure and technology, helps us exceed customer expectations by constantly delivering the most efficient operational performance,” remarked Ahmad Al Mutawa, CEO, Abu Dhabi Terminals.
ADT purchased the ultramodern cranes from Shanghai Zhenhua Heavy Industry Co. Ltd. (ZMPC) in China. This milestone follows the recent arrival of a batch of Automated Stacking Cranes which are also part of the expansion project, taking the total number of cranes at the terminal to 22. The final phase of ADT expansion will see the Terminal linked to the Etihad Rail network providing direct rail connections across the UAE and regionally. The AED1.6bn (US$ 435.6mn) expansion at Abu Dhabi Terminals is part of AED 4bn (US$ 1.089bn) development projects underway at Khalifa Port including an AED 2.2bn (US$ 599bn) development of its South Quay and Khalifa Port Logistics which will expand overall capacity and boost container capacity to 9 million TEUs over the next five years.
Tristar Group’s US$ 166mn contract with Shell on track n Tristar Group has taken
delivery of its new vessel, Solar Sharna, and took delivery of the Solar Nesrin on June 30. These new assets, which will be on a long-term charter to Shell, underpin Tristar’s continued growth and momentum. In 2018, the global integrated energy logistics company signed a long-term contract to charter six IMO2 25K Chemical Carrier vessels to the oil major. The remaining four vessels will be delivered between July 2020 and January 2021. The Solar Sharna and Solar Nesrin were built at the Hyundai Mipo Dockyard, South Korea’s premier shipbuilder. Tristar and Hyundai have worked together for many years, as the Company previously received
Tristar’s Solar Sharna. six 50K DWT MR tankers from the dockyard in 2016 for US$ 200mn. “We are pleased to have taken delivery of our first vessel, Solar Sharna, and look forward to welcoming the Solar Nesrin shortly. The new vessels feature Tier III engines which will reduce
emissions and operate in an eco-friendly way–very much in line with Tristar’s commitment to being a ‘Business for Purpose’ affirmed Eugene Mayne, Group CEO, Tristar Group. Tristar Group offers end to end fuel logistics solutions to blue-chip clients including
international and national oil companies and international NGOs. Its integrated energy logistics platform spans road and maritime transportation, specialized warehousing, fuel farms, commercial aviation refueling and remote fuel supply operations. JULY – AUGUST 2020 15
Bahri adds new dry-bulk carrier to its expanding fleet n Bahri has recently announced that it has taken delivery of the new dry-bulk carrier ‘Sara’. The vessel will be used for imports of basic grains, commodities, and other dry-bulk cargoes Built by Hyundai Vietnam Shipbuilding (HVS), a subsidiary of Hyundai Mipo Dockyard (HMD), the vessel increases the company’s fleet of dry-bulk carriers to six ships in line with its efforts to expand its marine capabilities and maintain its position as a leading dry-bulk carrier both regionally and globally. The new Kamsarmax-class vessel is the first ship received as part of the agreement signed between Bahri Dry Bulk and South Korea’s HMD in August 2017 to build and deliver four new dry-bulk carriers by 2020. “This new vessel represents an important addition to our fleet, and for Bahri Dry Bulk in particular, as it reinforces our position as the foremost dry-
Bahri Sara Dry-Bulk Carrier. bulk logistics provider in the region and beyond,” commented Eng. Abdullah Aldubaikhi, CEO, Bahri. The environmentally friendly ship has been developed to offer the highest standards of comfort, safety, and fuel efficiency, with a design
draft speed of 14.20 knots at normal continuous rating (NCR) with a 15% sea margin. The new carrier will serve the growing demand in the Kingdom of Saudi Arabia for imports of basic grains, such as wheat, barley, corn, and other
dry-bulk cargoes. The four new dry-bulk carriers have been ordered to fulfill the needs of consumers in the Saudi market and the wider region, together with international companies that import grains to the Kingdom.
Honeywell announces opening of gas detector factory in Saudi Arabia n Honeywell recently
announced it will open a new facility for the production of gas detection devices in Saudi Arabia. The factory underscores Honeywell’s commitment to the In-Kingdom Total Value Add (IKTVA) program. Established to accelerate Saudization, IKTVA’s aim is to achieve 70% localization of production and jobs by 2021 and act as a key enabler of Saudi Vision 2030. The new ‘Made in the Kingdom’ Honeywell factory will support IKTVA’s localization objectives by creating production jobs for Saudi nationals that enhance workforce skills and capabilities. Through the new factory, Honeywell becomes the 16 JULY – AUGUST 2020
first international company producing gas detectors in the Kingdom, enabling local availability of the equipment, shorter lead times, and on-theground customer support. The devices will provide a reliable and cost-effective way
to ensure the safety, compliance and productivity of workers who are operating in hazardous environments in Saudi Arabia. “Our advanced gas detection systems help keep workers safe and enable them to rapidly respond to gas leaks
and site incidents,” remarked John Waldron, President and CEO, Honeywell Safety and Productivity Solutions (SPS). Located at the extension of Dhahran Techno Valley, the Honeywell facility will produce 10,000 portable gas detectors and 800 fixed gas detectors annually when it reaches full production in 2022. “This new facility marks another milestone in our Saudi Arabian history, providing new employment opportunities and expediting an increased drive for locally manufactured goods,” commented Norm Gilsdorf, President, Honeywell, High Growth Regions, Middle East, Russia, Turkey, Central Asia & Customs Union.
RSA Global and JUSDA India partner to airship pandemic medical products
Bashar Obeid Abhishek Ajay Shah
n RSA Global has partnered with JUSDA Supply Chain, part of Foxconn Technology Group and an end-to-end supply chain management platform company, to operate multiple air cargo flights from India to the US transporting Covid-19 related essential pharmaceutical goods supplying the pharma industry in the US. India is the third largest producer of pharmaceuticals in the world by volume supplying 20% of global exports of ‘generic’ drugs with the US being one of its biggest markets and the country has been increasingly sending pharmaceutical supplies to the US supporting the country’s pharma industry during those difficult times. Combined with the fact that the India-US trade lane is one of JUSDA’s main operating routes, the company has the required expertise to handle sensitive pharma shipments to the US professionally. “Given JUSDA’s wide presence in India and extensive experience in air cargo shipments, we are confident that we found the right partner to deliver high quality air cargo services from India to the world, supporting the pharma and other industries,” affirmed Abhishek Ajay Shah, CEO & CO-Founder of RSA Global. “We are delighted to collaborate with RSA Global and leverage the strategic location of Dubai to build international freight, multi-modal distribution, and cross border e-commerce services into the MENA region,” observed Saurabh Goyal, General Manager, JUSDA India.
Aramex launches ‘Aramex SMARTUnbox First. Pay After.’ Initiative n Aramex recently announced the launch of ‘Aramex SMART’, an
innovative and comprehensive delivery, payment and returns solution for e-tailers that enhances consumers’ online shopping experience, increases payment options and delivery flexibility, and promotes the overall growth of e-commerce industry in the region. ‘Aramex SMART’ is the world’s first all-in-one stack delivery, payment and returns solution offered by a logistics and transportation company. It enables e-tailers around the world to deliver a premium experience for their shoppers in Aramex’s core markets. Consumers that use this solution benefit from a convenient online shopping experience which gives them access to fast deliveries, easy returns, and allows them options to complete their payments within a period of 14 days after the delivery of their shipment, using a payment method of their choice. “With ‘Aramex SMART’ we aim to support businesses that wish to grow their online sales channels, and improve the online shoppers’ overall experience, especially during the current unprecedented challenges. Through the launch of this innovative solution, we aim to boost growth in the digital economy and support resurgence in retail demand,” asserted Bashar Obeid, CEO, Aramex, “Through our extensive market research, we identified a need for a full suite solution that will address disparities between an increased consumer preference for cash-on-delivery shipments in spite of limited digital payment options offered by e-commerce players,” commented Arun Singh, Aramex’s Corporate Treasurer and Head, Aramex SMART. Aramex SMART is the latest addition to the suite of other innovative solutions that Aramex developed as part of its digital transformation journey. Earlier this year, the company introduced a fully revamped mobile App that includes real–time shipment and courier tracking, and seamless connection to Aramex’s WhatsApp chat-bot.
JULY – AUGUST 2020 17
Air Cargo demand plummets globally by 42.4% n The International Air
Transport Association (IATA) recently released data for global air freight markets in April showing that demand dropped 27.7% compared to the same period in 2019 - the sharpest fall ever recorded. Still, there was insufficient capacity to meet demand as a result of the loss of belly cargo operations on passenger aircraft. Global demand, measured in cargo tonne kilometres (CTKs), fell by 27.7% in April compared to the previous year (-29.5% for international markets). Similarly global capacity, measured in available cargo tonne kilometres (ACTKs), shrank by 42% in April compared to the previous year (-40.9% for international markets). Belly capacity for international air cargo shrank by 75% in
Air cargo demand droppped sharply in April 2020. of the rise suggests that there is April compared to the previous significant demand for air cargo year. This was partially offset which cannot be met owing to by a 15% increase in capacity the cessation of most passenger through expanded use of flights. freighter aircraft. “Airlines are deploying as The cargo load factor (CLF) much capacity as possible, rose 11.5 percentage points in including special charter April; the largest increase since operations and the temporary tracking began. The magnitude
use of passenger cabins for cargo. Governments need to continue to ensure that vital supply lines remain open and efficient,” said Alexander de Juniac, IATA’s Director General and CEO. Meanwhile IATA urges governments to accelerate approvals for cargo operations; expedite customs clearance for urgently needed medical supplies and ensure there is adequate staff on the ground and land-based infrastructure to move cargo efficiently. Middle Eastern carriers reported a decline of 36.2% yearon-year in April, significantly worse than 14.1% fall in March. Despite a number of carriers in the region maintaining some cargo capacity, traffic on all key routes was low. International capacity decreased 42.4%.
JAFZA conducts massive disinfection drive post lock-down n Jebel Ali Free Zone (Jafza),
the leading trade and logistics hub announced its readiness to facilitate the full operations of over 8,000 companies through conducting a massive disinfection programme across all its facilities. The area covered for internal fumigation and disinfection of buildings is around 3,300,000sqm equivalent to 462 soccer fields. The road disinfection campaign carried out a couple of months ago to limit the spread of the pandemic covered more than 35km. The disinfection programme started in March 2020, and has not stopped since then. It has covered all office and accommodation buildings, security gates and commercial centres, as well as the main roads in Jafza. With the return of staff, 18 JULY – AUGUST 2020
Sterilization programme on in JAFZA.
Jafza has implemented comprehensive policy and guidelines such as executing complete disinfection and sanitization programme for all equipment, vehicles, offices and other physical assets. Isolation rooms have been
identified, and all processes and procedures are in line with DHA guidelines for dealing with such cases. Such resolute measures will sustain business continuity and facilitate resumption of essential operations. “We are working closely
with all companies in JAFZA to continuously raise awareness about the required measures which will keep their staff and customers,” commented Mohammed Al Muallem, CEO & Managing Director, DP World, UAE Region and CEO, JAFZA.
DHL Express to build new gateway at Munich Airport n DHL Express Germany
and Munich Airport have concluded an agreement for the construction of a new cargo building at Munich Airport. The new building will be built on the site currently occupied by two car park blocks and will have a gross floor area of more than 8,000sqm. For the first time, the partners signed the contract digitally, reflecting the current restrictions. DHL Express will plan, build, and operate the new building and lease the land for it from Munich Airport. Currently, the company rents hall space in the existing cargo center at Munich Airport. The start of operations at its own designated location will be six times bigger, is scheduled for 2022. In recent years, DHL Express has seen a substantial increase in import and export volumes at
its Munich gateway.“The existing building could not keep up with this growth,”commented Markus Reckling, Managing Director, DHL Express Germany, explaining the need for this EUR 70 million (US$ 79.06mn) investment project.
“The new gateway will have direct airside access and two PUD (pick-up and delivery) fingers. Up to 65 delivery vehicles at a time can be dispatched here,” he continued. Munich Airport CEO Jost Lammers welcomed the express
service provider’s decision to focus systematically on growth at Munich Airport: “The increased commitment of DHL Express will sharpen our profile as a logistics location and create significant stimulation for air freight traffic,” he remarked.
Solutions for a healthy world Tranzone operates a state-of-the-art 3PL warehouse in Jebel Ali Free Zone. We have partnerships with the leading pharmaceutical, medical device and animal health companies around the world.
Healthcare Logistic Services: Air Freight Sea Freight Land Transportation Value Added Services Warehousing & Distribution Return logistics Documentation Tranzone FZCO (Member of Banaja Holdings)
Jebel Ali Free Zone (South) Plot No: S20129 P.O Box : 262955, Dubai, United Arab Emirates, Tel : +971 4 811 0000
Web: www.tranzone.ae JULY – AUGUST 2020 19
New Managing Director appointed for Serco ME
SAIF Zone adds another world-class 70 warehouses in ‘U2 Area’ n The Sharjah Airport International Free Zone n Public Services Company Serco Middle East has appointed Wallace Weatherill as its new Managing Director, a role in which he will spearhead the operations of the largest automated transport system in the region the Dubai Metro as well as the Dubai Tram in collaboration with the Roads and Transport Authority (RTA). Wallace has worked in the Middle East rail industry for over 6 years, firstly mobilizing the North-South high-speed passenger Railway in the Kingdom of Saudi Arabia. Wallace re-joins the public services company having previously served as Serco’s Director for Rail in the Kingdom of Saudi Arabia. With almost 20 years dedicated experience in both the UK and the Middle East, Wallace brings with him the knowledge and expertise required to successfully continue the award-winning Dubai Metro operations for both Serco and the RTA. Prior to his overseas appointments, Wallace led passenger railway businesses in the UK such as Southeastern, London Commuter Railway and London Midland. “My vision is to build on the success that has already been achieved by the RTA and Serco on the operations of the iconic RTA rail transit systems in Dubai,” commented Weatherill. “I am confident that Wallace will be an asset to our team and will continue Serco’s awardwinning delivery of service across the RTA transport systems,” remarked Phil Malem, CEO, Serco Middle East. 20 JULY – AUGUST 2020
(SAIF Zone) has announced the completion of development works on ‘U2 Area’, a new dedicated district for stores and warehouses. The ‘U2 Area’ features 70 world-class and mergeable stores with each of which spreading over an area of 600sqm. They were designed this way to enhance the absorptive capacity and the overall area to suit the investors’ and customers’ needs. The new area will help attract new investors in key sectors and support the existing investors to expand their operations and add new warehouses for their businesses. The new stores have been equipped with modern equipment according to best international practices in field. They were also provided with modern offices, advanced cooling systems, and innovative roofs design to help reduce heat absorption, maintain resources and environment, and provide the highest levels of security and safety for workers, a company press communiqué stated. “With U2 area, the total number of SAIF Zone’s warehouses and stores now surpasses 2,000, making it among the top free zones in the Middle East in terms of the number of warehouses that suit all needs,” commented Al Mazrouei. SAIF Zone advantages include cutting-edge infrastructure, diverse global utilities, single-window services for performance efficiency and ease of doing business, various tax exemptions, zero restrictions on profit or capital repatriations, 100% foreign ownership of businesses and 24/7 security and emergency services, the press note concluded.
Breakthrough technology with Thermal Cameras for Fever Detection Thermal Infrared and Facial Recognition Tablet Network Camera is a biometric reader that not only authenticates identity but also checks the forehead temperature of people. We protect your premises from intrusion and virus outbreak. Thermal and optical Bi-spectrum with facial recognition Built-in high accuracy thermal infrared module,temperature detection range 35°C~42°C, precision ±0.3°C Support real-time display and overlay of human body temperature Face detection speed:<300ms Face Capacity: Max. 50,000 face storage 8 inch LCD, 2 MP wide-angle dual lens Built-in IO output, easy to communicates with the third-party turnstile
w: e no n l b a l ctio avai Also nal Prote E) o PP Pers ipment ( n, Gow ks, Equ alls, s Over Face Ma , s s r e e Glov oe Cov ve Sh bo a the f es) o ll (A all siz in le b availa
GCEC Trading ww w. gcect.co m
GCEC Trading www.g ce ct. com
To order, please Contact: GCEC Trading LLC Dubai, United Arab Emirates Land Line: +971 4 388 0011, Mobile: +971 54 307 8500 WhatsApp: +971 54 307 8500, Skype: saif@gcect.com Email: saif@gcect.com URL: www.gcect.com
SOHAR PORt & FReezOne
SOHAR Port and Freezone
Setting Soaring Standards For Oman’s premier port, it is full steam ahead
Sohar Port is set to play a key and instrumental role in realizing the Sultanate’s Logistics Strategy 2040 which aims to rank Oman among the top ten countries in the world for exceptional logistics performance by the year 2040.
S
ohar Port & Freezone’s stellar accomplishment since its inception in 2002 and further fortified by the establishment of its adjunct, the sprawling and rapidly developing Free Zone in 2010, is well chronicled and makes for an interesting narrative. SOHAR is rapidly becoming a major industrial and logistics hub in the region, with easy access to global markets. Its strategic location makes it a gateway between the East and West, at the heart of some of the busiest shipping lanes in the world. Our vision is to establish SOHAR on the global map for transshipments, thereby contributing to Oman’s logistics performance. In 2002, the Government of Oman and the Port of Rotterdam signed a Memorandum of Understanding to develop a concession agreement for SOHAR Port. Royal Decree 80/2002 ratified the Concession Agreement of Sohar Port and was issued in August of the same year. Construction of the petrochemical complex, first terminal and other facilities started in 2003. The same year, the first lease agreement was signed between Sohar Industrial Port Company and Sohar Refinery, followed by a second agreement for the general cargo terminal with C. Steinweg Oman.
22 JULY – AUGUST 2020
SOHAR PORt & FReezOne
JULY â&#x20AC;&#x201C; AUGUST 2020 23
SOHAR PORt & FReezOne
24 JULY â&#x20AC;&#x201C; AUGUST 2020
SOHAR PORt & FReezOne
In 2007, a concession agreement was signed for SOHAR to develop SOHAR Freezone. The 4,500ha Freezone, a natural corollary for the establishment of the Port, was officially established in 2010. Since then, SOHAR Port and Freezone has been at the core of Oman’s economic diversification efforts, contributing to the Sultanate’s growth and logistics network. In an exclusive interview with Global Supply Chain, Mark Geilenkirchen, CEO, SOHAR spoke extensively and expansively on a wide range of subjects related to the port’s evolution and progress, how it is presently faring and road-map with plans and strategy for the future. Global Supply Chain (GSC): How have things shaped and evolved for the port over the past over 18 years since the formation of the port? Mark Geilenkirchen (MG): SOHAR Port has created a remarkable footprint, both in the region and globally and we are proud to be ranked one of the fastest-growing port and free zones in the world, with investments exceeding US$ 27bn. Thanks to our strategic geographical location we provide convenient access to markets in Asia, Africa and the Middle East, with an outreach of over 2 billion end consumers, SOHAR Port continues to play a vital role in accomplishing the objectives of the Sultanate of Oman Logistics Strategy 2040 (SOLS), which aims to place Oman among the top ten countries for logistics performance by the year 2040, and the transport sector as the second-highest source of national income. GSC: What are the future plans for the growth of SOHAR Port? You currently have new two licenses—can you please elaborate these and what other plans are in line with the further port expansion and development? MG: SOHAR Port and Freezone continues to expand and reach out to important markets and reinforce relationships with investors from across the globe. Our wellestablished mission and vision have helped all the members of the SOHAR family remain focused on delivering business excellence to clients and tenants. There are several projects in the pipeline, including establishing a Solar Park for both upstream and downstream opportunities and the creation of an LNG bunkering facility. Both are in line with our commitment to sustainability and the
provision of cleaner energy sources. Our land lease opportunities at SOHAR Port South and Terminal 2D help us grow and adapt as per current market demands. We also take pride in implementing other innovative solutions, based on the latest developments and technologies that are beneficial to our existing and future tenants as well as the community at large. Businesses looking to set up a business at the Port or Freezone can apply for a General Trade License (GTL), which extends several discounts to established and potential investors. A second license, Tasheel, is available for our customers to streamline documentation
SOHAR Port is proud to be ranked as one of the fastest-growing port and Freezones in the world, with investments exceeding US$ 27bn.
requirements. Derived from the Arabic word for ‘Simplified’, this easy-to-use online Permit Management System is one of our many digitised services and additions to Tasheel are planned to offer more features and flexibility to all users. GSC: In tandem with the growth of the Port is the Freezone and its multiple clusters. Please elaborate. MG: SOHAR hosts a number of industrial clusters at both the Port and the Freezone, with the latter specifically comprises of the solar, metals, logistics and automotive clusters. It also offers several incentives for investors to set up and operate their businesses with ease, including 100% foreign ownership, corporate tax holiday of up to 25 years, One-Stop-Shop for all relevant clearance, 0% personal income tax, low capital requirements and much more. SOHAR Freezone boasts of a large grid power infrastructure within its area. Together with Shell Development Oman (SDO), SOHAR signed an agreement that will see the provision of clean energy solutions through the facilitation of solar photovoltaic (PV) projects. The development will focus on meeting the energy demands of industrial tenants within the Freezone.
JULY – AUGUST 2020 25
SOHAR PORt & FReezOne
The Freezone will see the development of the biggest antimony-gold processing facility, which will be the first-of-its-kind in the region. The developing area is home to several warehousing spaces that are ready and tailor-made to suit customers’ needs. With the expansion of several tenants, including Al Hosn Logistics & Warehousing Services LLC, Matrix Prime and RFX Parks, the Freezone is looking forward to welcoming potential visitors seeking to set up in a rapidly expanding logistics hub, enhanced by integrated facilities to the Port. Recently, we established additional office space and are overseeing the construction of cold storage facilities (by Al Hosn), both of which will enable the transit of products and commodities through Oman or for distribution within the region. GSC: What are key takeaways / broad observations from a corporate perspective for SOHAR Port and separately for the Freezone? MG: Our strategic location and the Sultanate’s stable political climate make SOHAR the optimal location to set up a business. High levels of government support, easy-to-obtain project financing from local banks, 100% foreign ownership, and seamless connectivity are all key incentives for investors. Our integrated facilities enable us to support the entire supply chain, from production to delivery, in one easily accessible area. As an example, everything from the import of minerals, to its processing and final distribution, can take place entirely within SOHAR Port and Freezone. We believe that working together with the Port of Rotterdam is an immensely fruitful partnership. With over 600 years of experience, their insight into the industry and best practices in the field of environmental protection and technological innovation is second to none. While we continue to chart our own course, the knowledge we have obtained from such close ties has been vital to our growth and expansion. As a result, despite SOHAR being 18 years young, we have emerged as one of the fastest-growing ports in the region and one that is steadily emerging as a regional logistics hub. GSC: How has pandemic impacted your business in the Sultanate of Oman and regionally? 26 JULY – AUGUST 2020
SOHAR the optimal location to set up a business. High levels of government support, easy-to-obtain project financing from local banks, 100% foreign ownership, and seamless connectivity are all key incentives for investors.
SOHAR PORt & FReezOne
JULY â&#x20AC;&#x201C; AUGUST 2020 27
SOHAR PORt & FReezOne
MG: We are in the fortunate position to have experienced a limited impact on transshipment business due to the Covid-19 crisis. Although Oman may see a decline in import and export volumes over the course of 2020, our outlook remains positive with the supply chain’s ongoing adaptations to current challenges. It remains to be seen how the decline in global demand affects the Sultanate’s diversification opportunities, but we continue to work towards a better and bright future. GSC: How is SOHAR Port better preparing to possibly avert and deal more effectively with this current situation? MG: We are moving towards finding innovative methods to digitalise our services and enhance the ease of doing business. Our most recent project, Tasheel, enables our tenants and service providers to apply 28 JULY – AUGUST 2020
for various work permits online. Our business continuity plan has seen the implementation of preventive measures all around our facility - from welcoming vessels to the port to creating a safe work environment at our offices. Inspections are conducted aboard all vessels and our marine staff is equipped with the necessary PPE. We continue to keep ourselves wellinformed, not only to be in the position to adhere to the regulations of the Supreme Committee, but also to ensure quality customer service. On the community level, we support initiatives that aim to minimise the impact of Covid-19, including donating to the Endowment Fund of the Ministry of Health and providing vehicles and equipment to frontline workers. Overall, we hope to avert any challenges the communities may face as a result of the pandemic.
GSC: With a virtual freeze or limited movements in global cargo aviation, how gravely has this affected port operation in the Sultanate of Oman? MG: Currently, port operators in Oman are encouraged by the Ministry of Transport to optimise and digitise their services. This is to enhance operators’ efficiency, competitiveness and transparency within the logistics sector as a result of current limitations. At SOHAR, we are tackling present challenges manifold with innovations such as SOHAR Navigate. Through the application, companies within the supply chain can look for faster transit routes that are more efficient and reduce their overall costs. We have also adjusted our Ship-toShip (STS), anchorage and tug services tariffs and timings to address the current
SOHAR PORt & FReezOne
situation. At the moment, vessels are allowed to stay at the anchorage area for an increased number of days. GSC: How much of the professional work environment / ecosystem in the operations realm for SOHAR has changed as a result of the virus onslaught? MG: With our business continuity plan in place, many employees have taken on new responsibilities. Adaptations have been made to the work environment with the return to business, after working from home for a government-stipulated period of time. Many of the tasks employees have taken on are a direct result of the Covid-19 crisis, with staff members acting as a crisis manager, sanitation monitor and workfrom-home coordinator. On an operational level, meetings and events have moved from the physical to the digital realm. Equally, our team has been working towards digitising services and processes for our customers and staff. GSC: How can Governments help port operations in terms of regulations / funding / financial stimulus / pricing / sops / subsidies / coordination for the free flow of pharma, PPE and other emergency supplies? MG: The Omani government has taken a number of important steps to help logistics providers and entities overcome current challenges, including the implementation of several new regulations and incentives. The new initiative from the Oman Tax Authority to make corporate taxes payable for the year 2019 in installments is of great help to entities. In addition, fines and penalties have been suspended for delays in submission until September 2020. Taxes for the previous years can also be rescheduled. Equally helpful in decreasing and managing financial and operational challenges is the comprehensive incentive package provided by the Central Bank of Oman (CBO), which provides additional liquidity of over OMR 8bn (US$ 20.78bn) for the local economy. ASYAD Group, as Oman’s integrated logistics provider, has announced the operation of 200 weekly maritime services to 86 commercial ports in over 40 countries. This allows for the direct import and export of a variety of goods, commodities, vegetables, fruits and meat. Aside from linking the Sultanate’s ports to other key regional and international ports, it also enables import companies to save up to
The ASYAD Group, Oman’s integrated logistics provider, has announced the operation of 200 weekly maritime services to 86 commercial ports in over 40 countries. 50% of transit time with direct services. The Ministry of Health in Oman continues efforts to ensure that hospitals and health centres across various Wilayats, including North Al Batinah, are wellequipped to deal with Covid-19 patients. This includes the ongoing supply of required PPE, as well as the provision of Covid testing devices and more. GSC: What opportunities and challenges confront SOHAR vis-à-vis the pandemic? MG: We believe that the current pandemic has been a truly important learning opportunity for us, providing insight into where we stand on a crisis management level and how we are able to overcome it. Thanks to the perseverance and efforts of everyone involved, we have enhanced the quality of the services we offer, reinforcing our commitment to increasing trade flows into the Sultanate. With the ongoing digitisation of our services, we extend attractive benefits for prospective investors at this crucial time. The availability of these simplified and faster incentives, we hope, will contribute significantly to the national GDP as well as the economic diversification efforts. Our team members have taken up new responsibilities allowing them to acquire new skills and take on new challenges. They are key in reducing the negative impacts of the pandemic, for the benefit of SOHAR, the Sultanate and its people. Although the world may be experiencing difficult times, with delays in shipping and disruptions in the supply chain foreseen to have effects on market economies, we believe that together as a collective we will conquer current times and achieve a better future. GSC: Briefly, what lessons to date are learnt from the Covid-19 outbreak as far as SOHAR is concerned?
MG: Overall, we are proud to affirm our level of preparedness in mitigating the effects of the pandemic. By having our employees take on new responsibilities, SOHAR has been able to seamlessly maintain the flow of business operations, thereby meeting the demands of the local market. Through the efforts and teamwork of all our staff, whether they are aboard vessels or at the offices, we have been able to reduce the risk of infection. This goes hand in hand with the hard work and dedication of Oman’s government entities, including the ROP (Royal Oman Police) and Directorate of Customs. We have learnt ways and means to serve our customers when physical meetings and events are not possible. By optimising our existing processes, we continue to deliver services that meet our customer needs without compromising on quality. GSC: What measures has SOHAR taken to better equip its team and maintain a safe environment for the employees? MG: Our business continuity plan was put in place with the onset of the pandemic and describes the measures taken by SOHAR Port and Freezone to achieve two main objectives. The first is to reduce the risk for employees and the second to secure business continuity and operations. Responsibilities were established within the team, to ensure that employees understand the ins and outs of the business continuity plan and adhere to any measures put in place. We continue to maintain contact with the Ministry of Health on a weekly basis and update our team regularly. GSC: How important is technology in the new normal scheme of things and how is it enabling and empowering operation in the Ports and Freezone sector? MG: Technology is key in enabling and empowering operations at SOHAR Port and Freezone. Since ‘virtual’ is the new normal, we are adapting our operations and use the latest technology to enhance our services. At SOHAR, we believe in smarter thinking. Innovative technologies enable us to connect with and understand our customers and partners in an unprecedented manner. This, in turn, helps us improve service quality and strengthen the customer journey – from the first contact to license applications and business set up and management. JULY – AUGUST 2020 29
GPCA
The GCC chemicals sector must plan and prepare for post-pandemic period The oil and gas and chemical sectors are expected to start to recover in Q3-2020, says GPCA
T
he chemical industry in the Arabian Gulf must plan and prepare for the post-Covid period, turning adversity into advantage, and capitalize on the lessons learned to retain and enhance its global competitiveness, according to the Gulf Petrochemicals and Chemicals Association (GPCA). In a newly released white paper entitled ‘Covid and Chemicals’ GPCA provides exclusive insights into the impact of the pandemic on supply and demand, petrochemical prices, the dual shock from the pandemic and the oil price collapse, as well as the implications on the region’s supply chain and international trade. According to the paper, the pandemic is revealing flaws in the supply chain that the chemical industry has relied upon for
decades, which presents an invaluable opportunity to address existing weaknesses and transform the region’s supply chain.
Pandemic strain Like the chemical industry globally, the GCC petrochemical sector has felt the strain from the Covid-19 pandemic in the form of plunging petrochemical prices, disruptions on the Chinese market, travel and export restrictions, as well as collapsing demand due to a slowdown in key end-user industries. On the positive side, demand for products used in the manufacturing of sanitizing products, personal protection, and health care remained upbeat and the production of fertilizers was not impacted. For chemicals used to fight Covid-19, prices
GPCA warns GCC chemical exports to India may be hit by investigation Investigative practices by Indian authorities on anti-dumping regulations raise serious concerns under the WTO rules GCC ethylene glycol (EG) imports into India may be severely hurt as a result of an ongoing anti-dumping investigation targeting imports from Saudi Arabia, Kuwait, Oman, UAE and Singapore, the Gulf Petrochemicals and Chemicals Association, the regional trade body representing the common interests of the chemical and allied industries in the Arabian Gulf stated in a press release. The inconsistent investigative practices by Indian authorities on anti-dumping regulations raise serious concerns under World Trade Organization (WTO) rules and threaten to severely hurt GCC economies, jeopardizing US$ 543mn worth of mono ethylene glycol (MEG) imports, which is equivalent to 20% of total
30 JULY – AUGUST 2020
chemical imports from the region into India, according to GPCA analysis. India is the second largest importer of GCC chemicals and accounts for over a third of total GCC export volume together with China. On 6 April 2020, Indian authorities terminated the investigation for the sole imports from Saudi Arabia, and continued the investigation into imports from Kuwait, Oman and the United Arab Emirates. This partial termination of the investigation is inconsistent with Indian anti-dumping rules. “This detrimental and ill-advised measure is having a harmful impact not just on GCC economies but also on bilateral trade, threatening to disrupt India’s domestic market and damage long-standing friendly relations between the nations,” commented Dr. Abdulwahab Al-Sadoun, Secretary General, GPCA.
Dr. Abdulwahab Al-Sadoun have stayed moderate, while fertilizer prices improved by 3% in March 2020 compared with February 2020. According to estimates by global consultancy firm McKinsey, the oil and gas and chemical sectors will start to recover in Q3-2020. Prices are expected to rebound with the resumption of consumer demand. However, if the situation persists and prices remain depressed beyond a year, the longterm impact will be severe.
Challenges “These are unprecedented times for the industry not just in the region but all over the globe, and GPCA remains committed to supporting its members in navigating the ongoing challenges,” remarked Dr. Abdulwahab Al Sadoun, Secretary General, GPCA.“The time is now for chemical players to focus on key areas to strengthen their competitive position and emerge stronger from the crisis. Companies must study lessons learned during Covid-19 period to improve their organizational effectiveness. They can further use changing consumer attitudes due to Covid-19 as an opportunity to improve their product offering, address new customer needs and focus on innovation,” he continued. He also observed that the Covid-19 crisis has amplified the importance to diversify regional economies and focus on valueadded chemicals that can not only play a key role in providing unique solutions in healthcare, but help insulate the region from future oil price shocks.
GCEC TradinG
Telematics and Tracking Solutions
GCEC Trading on track with innovative customized navigational and monitoring technologies
GCEC Trading’s automotive monitoring technology is blazing a new trail enabling effective vehicle oversight while monitoring, managing and improving driving behaviour for safe, secure, efficient and compliant fleet.
E
stablished in 2007, UAEheadquartered GCEC Trading is clearly in for the long haul and in the vanguard of vehicle movement and oversight technologies. The pioneering company, founded by investor and entrepreneur Mohammad Sulaiman, CEO, was conceived to provide clean energy products. In 2014, Farhana Kausar joined GCEC Trading in her capacity as Managing Director and at this juncture the company redoubled its efforts to reinforce its green credentials and diversified in providing its popular cutting-edge software technology and telematics to reduce the carbon footprint. The company prides in its offering an array of advanced GPS Tracking solutions; Fuel Management systems; Mobile Digital Video Recording (MDVR) and Streaming solutions; In-vehicle Temperature Management and other bespoke critical offerings which enable to manage assets thus reducing the carbon footprint.
SecurePath In 2015, GCEC Trading was an approved vendor of DPS-(Dubai Protective Systems) an extension of Dubai Police who rolled out their breakthrough SecurePath, a cloud-based navigational and digital map and GPS tracking technology. This certified and approved service is used in Dubai rental vehicles which are registered under the business category of vehicle rentals and leasing. GCEC Trading is registered for SecurePath, the Dubai Police’s Department 32 JULY – AUGUST 2020
Mohammad Sulaiman, Founder-CEO, GCEC
Farhana Kausar, Managing Director
of Protective Services’ initiative for key, vital monitoring mechanism operating under the Security Industry Regulatory Agency (SIRA) the state regulatory body for issuing security licensing and related services. GCEC is very well placed with its experienced and professional team who understands its customers’ needs and requirements and provides tailor-made solutions for its clientele. In an exclusive interview with Global Supply Chain, Mohammad Sulaiman, Founder-CEO, outlined the company’s numerous accomplishments, the developments of bespoke, in-house developed innovative technologies that are defining the demands and prerequisites of managing assets.
Having GCEC as Partner n Up to 31% increase in customer support efficiency n Up to 15% reduction of fuel costs n Up to 25% increase in Equipment Utilization n Up to 20% Improvement in Customer Satisfaction n 100% User Responsibility Some of the industries we cater Refrigerated Cargo Tracking, Car Hire Industry, School Bus Tracking, Ready Mix Industry, Heavy Equipment Management, Generator Management
JULY – AUGUST 2020 33
GCEC TradinG
Global Supply Chain (GSC): Briefly, please profile GCEC Trading and the range of products and service the company offers? Mohammad Sulaiman (MS): GCEC was founded in 2007 principally to plan and develop renewable, sustainable energy projects and environmentally-friendly products. Over the years, the company has gravitated towards other industry verticals focussing on the IT and associated sectors industry and primarily Telematics, which we now consider our forte. Currently, GCEC broadly offers a full suite of GPS Tracking Solutions; Mobile Digital Video Recording (MDVR); CCTV, Security Hardware Products, software development and other innovative products. GCEC is an approved GPS Tracking services provider on behalf of and working closely with the Dubai Government and other regulatory and enforcement authorities. To this end, we are associated with SecurePath, a Dubai Police Initiative under the aegis of the Security Industry Regulatory Agency (SIRA). Our proprietary self-developed products include GlobaliTrack®, a GPS tracking mechanism catering to corporate fleets for asset management, temperature control, fuel, seat belt usage, door sensors monitoring and other parameters. In our domain also is GlobaleyeTrack®, another ingenious GCEC product that mainly caters for the corporate sector fleet for asset monitoring through the Mobile Digital Video Recording and Streaming (MDVR) device. GSC: What is your assessment of the telematics industry in the region and how significant is this geography for GCEC? MS: More and more companies in the region and across the globe are becoming increasingly conscious of the need to use
34 JULY – AUGUST 2020
appropriate techniques and protocol for the management and security of company assets and the safety of their employees. The United Arab Emirates is security conscious country providing the utmost security for its citizens, residents and visitors. We are not just limited to the UAE, we provide tracking solutions throughout the GCC and the wider Middle East. We believe the industry is likely to grow due to major events and upheavals now taking place across the world. Security is one aspect of the GPS tracking by managing the fleet which results in, among other advantages, the reduction of carbon footprint. GSC: What potential do you foresee for GCEC in the region and which countries hold the most promise? MS: The UAE is certainly a country that holds substantial promise and potential. The nation continues to grow from strength to strength and attracts international businesses and investments. Another country that we are very upbeat about is Saudi Arabia, a regional powerhouse with stable financial foundations and assured income from its abundant energy resources GSC: What are GCEC’s USPs and advantages over its competitors? MS: GCEC’s work ethic, professionalism,
our commitment to develop products and programmes that meet the highest and the most demanding industry standards. We also pride in what I would like to characterize as our impressive customer service offering and expertise borne out of experience and competence. Other standouts include the use of high quality components and applications, userfriendly software, implementation of the newest available effective technologies and high-quality continued research and development. GSC: What opportunities and challenges confront GCEC in the Middle East? MS: We foresee unlimited opportunities and these continued unabated. However, we face daily challenges with inferior and sub-standard competitor products. Our aim is to, do it right with proven abilities and implementation at the very outset so that our customers do not face any downtime. GSC: How aware are logistics and supply chain companies and transportation companies in particular of telematics in the region? MS: We believe that companies are presently well aware of vehicle monitoring systems. However, the majority have not taken advantage or implemented the GPS technology into their operational strategies.
GCEC’s work ethic, professionalism, our commitment to develop products and programmes that meet the highest and the most demanding industry standards.
GCEC TradinG
So whilst there is awareness, this has not resulted in implementation. GSC: How vital is the telematics industry for the logistics industry? MS: Vital is an understatement in this day and age and it is a complete necessity for the use of telematics and its derivative and applications to any logistical operations. The basic requirement for any supply chain is to know when the shipment will arrive, be it by air, sea or road. Arrival dates and estimated periods can be obtained from advanced telematics which also performs a slew of muchneeded functions including container tracking, time sensitive refrigerated cargo, the monitoring of air freight shipments or any other packages—big and small. All movements are monitored through a tracking system for many years now. If the entire industry is tracked for their shipments so it is logical and imperative for vehicles especially with time sensitive refrigerated cargo such as fresh meats, dairy and other perishables to be supervised to meet transportation and shipment quality controls and SOPs (standard operating procedures). GSC: What is the extent of the telematics services that you offer in the region in relation to Fleet Management, Driver Safety and Vehicle Tracking? MS: Telematics has wide applications in today’s businesses. Telematics can be harnessed by corporate fleets for a number of functions. By combining a GPS system with on-board diagnostics it is possible to record and map exactly where a vehicle is and how fast it is traveling, and cross
reference that with how a vehicle is behaving internally. Wireless vehicle safety communications telematics aid in car safety and road safety. It is an electronic sub-system in a car or other vehicle for the purpose of providing analytical information, about such things as driver behavior, locations, speed of vehicles etc which ultimately adds positively to the bottom line. With our dedicated Management team and associates, we represent almost 12% of Dubai vehicle rental market in the UAE. GSC: What is your extent of involvement in the oil and gas sector in this energy rich region? MS: Currently we have not tapped in this sector however we are looking actively to get involved GSC: Who are among your prominent clients and how would you characterize your partnership with them? MS: GCEC represents some of the major players in the region who have fleets in excess of 500 vehicles plus. Under existing terms and conditions of agreements, I am not in a position to identify our clients. GSC: Do you customize solution for individual companies as applicable? MS: Yes we do individualize solutions for specific customers. Our products are tailored to customers’ needs and requirements. We strive to meet our customers’ requirements and provide solutions that are unique for their business and ecosystem. GSC: What industries verticals and sectors broadly do you target?
MS: Our customer range comprise distribution companies, trading companies, schools, delivery companies, food delivery (temperature control), vehicle rental industry and cross border transportation companies. GSC: What are your expansion plans for the region? MS: GCEC is looking to expand throughout the GCC in next five years. We are very buoyant about this region and are committed to make inroads and develop our business to reach a wider clientele. GSC: How did you fare in 2019 vis-à-vis 2018 and how is 2020 looking? MS: GCEC has increased its turnover in 2019 by 11% over corresponding 2018 figures. This reflects an above-average increment in business for our sector. For the future, we are looking forward to the Expo 2020 now to be held in October 2021. However, current world events and the ongoing Covid-19 pandemic pose challenges and have cast a long shadow on the regional and global economic scenario. This appears to be a grey and unpredictable area for all concerned. At this stage we can only hope that this is a temporary setback and look forward to closing 2020 with positive numbers. GSC: What is your vision—short & long term for GCEC in the region? MS: Our goals are simple and it has always been to continuously research and develop new products, services and technologies to enhance and grow our business both organically with our existing clients and also with new customers. JULY – AUGUST 2020 35
Navigating NAFL through turbulent times NAFL ExcLusivE
NAFL President Nadia Abdul Aziz holds forth on a wide range of industry subjects and their consequences in the shadow of the pandemic
36 JULY â&#x20AC;&#x201C; AUGUST 2020
NAFL ExcLusivE
Nadia Abdul Aziz
There is no doubt that the Covid-19 pandemic has dealt a massive blow to the global economy. On the supply side, factories and businesses have been forced to close temporarily due to the shortage of input materials from suppliers and the need to protect workers. Demand is declining, too, as consumers stay home and face the prospect of a large-scale economic downturn.
A
s a natural and obvious corollary, the pandemic has irretrievably impacted both national and international trade and constituent production, supplies, transportation distribution systems with far-reaching economic consequences for the core logistics and supply chain industry. JULY â&#x20AC;&#x201C; AUGUST 2020 37
NAFL ExcLusivE
Many logistics and supply chain companies and related services providers in the UAE have gone out of their usual to not only tackle the disruptions wrought by the pandemic and its fall out on virtually every industry sector across the globe. To get to know and understand the ramifications of the pandemic in the UAE and region, Global Supply Chain conducted an exclusive expansive interview with Nadia Abdul Aziz, the second-term President of the long-established UAEâ&#x20AC;&#x2122;s National Association of Freight and Logistics, NAFL, the first apex association of freight logistics service providers to be established in the Middle East. Nadia is also the first Emirati to hold this coveted position. Global Supply Chain (GSC): Briefly, what are key takeaways of the Covid-19 pandemic from the logistics and supply chain perspective? Nadia Abdul Aziz (NAA): There are clearly many far-reaching and across-the-board implications of the onset of Covid-19 pandemic for the national, regional and international logistics and supply chain industry. We learned that we need to have the following in place to avoid major business disruptionsâ&#x20AC;&#x201D;to have contingency plans for crisis situations and management of businesses during crises. We need to train employees on extensive use of IT and new tried and tested technologies for our businesses and how to maximize 38 JULY â&#x20AC;&#x201C; AUGUST 2020
The UAE Government is well prepared in this segment and the Government Strategy & Charter for 2021 was implemented earlier which has proven to be very effective and successful. productivity by the latest available hi-tech services and smart applications. We also realize capability, adaptation and resilience in employees who can run business successfully despite the odds Furthermore, we need to invest more in the software used in the offices as digitalization is the future and becoming increasingly indispensable. The UAE Government is well prepared in this segment and the Government Strategy & Charter for 2021 was implemented earlier which has proven to be very effective and successful. The private sector should engage and use the updated and the latest available technology in their work. Quotes, rates, online live client meetings, management reports, online marketing and sales are now the new norm. We need to harness technology to drive sales, generate more business, and reduce costs and most of all now is to connect to the e-commerce
users and ensure you can fulfill their needs and requirements. There has been a big uptake on this front and this will continue in the foreseeable future, which means logistic firms need to be ready to capture this growing market with opportunities. A good example is Noon Logistics which is now really focused on serving clients online by delivering daily groceries to top fashion and electronic items. Many e-commerce businesses have been prudent to realize the potential of online marketing and purchasing a sector that will continue to deliver greater dividends going forward. GSC: How is the onset of the pandemic impacting the L&SC (logistics & supply chain) trade regionally and globally and the UAE specifically? NAA: Logistics was badly impaired in some instances or considerably reduced in the immediate aftermath of the shutdown following the outbreak of the pandemic. There was an increase in medical supplies cargo, food supplies, urgent machinery parts and humanitarian aid along with other main necessities. Large volumes of emergency and medical goods are being airlifted to the muchneeded areas. Due to high demand and restricted flights, the result was higher air freight rates by 3 to 4 times than the regular air freight rates. Fortunately in the UAE it was well organized compared to other countries,
NAFL ExcLusivE
and this was thanks to the Government’s use of technology, smart services long ago which made it easier for forwarders to work remotely during shutdown and even after. During the shutdown forwarders were permitted to work as their industry is one of the vital industries in the country to ensure everything the hospitals, medical community and consumers need are available. All operations for imports and exports of necessary goods are done using a single window application such as ‘Dubai Trade’ for Dubai corporates and ‘Maqta Gateway’ for Abu Dhabi. This facilitated the streamlined movements of goods and reduced personal and unnecessary face-to-face interaction as operations are conducted online to complete cargo documentation and clearance. GSC: How much of your professional work environment / ecosystem in the operations realm has changed as a result
of the Covid-19 virus onslaught? NAA: I estimate at least 40 percent of our work can be done remotely, as most Government transactions can be done online and even over your mobile. Better coordination and communication skills were used during the pandemic to complete client work and I can say more team work and harmonization is called for as everyone wants to stay safe whilst at the same time secure their jobs even if it means doing the work remotely or in shifts. We at NAFL have efficiently utilized our office space to ensure all employees can work in a safe environment as we ensured there is appropriate and mandatory social distancing. The same is also true of many of our associates and members. We are continually monitoring the market for quality protective materials that we can provide for our staff. We operate as a closeknit team ensuring everyone knows their
responsibilities to stay safe and to ensure safety at all times. We are mindful that our member-companies are also following suit. Utilizing temperature and heat sensitive cameras in the warehouses to monitor everyone with a fever can be effectively used to reduce risk of any infection or virus spread at the facilities and warehouses. That applies to all and many NAFL associate companies have invested in this arena to ensure safety of their employees and workforce. GSC: With the Pharma / Food / Cold Chain and critically required medical / PPE (personal protective equipment) supplies industry in the frontlines of the fight against the virus, how have your priorities been rearranged and what kind of new demands / pressures are being put on businesses now? NAA: Our priorities for our associates and members have been rebooted and rearranged, as our main objective is to retain and preserve our employee force and ensure we all survive this pandemic. In addition to this we want to ensure once they are back to work they are fully protected and feel safe. We also taken appropriate and adequate health insurance to make certain we cover virus-related treatment to avoid our staff having to pay high spot rates for hospital treatments if needed, despite the Government offers of complimentary Covid-19 medical treatment. We ensure that our employees have access to sanitizing products, gloves, masks, and apply social distancing and are also educated on the virus and how to avoid getting infected. Thermometers placed at office entrance to daily check everyone’s temperature, to reduce the risk of having anyone infected. We also organized an awareness campaign in the office, ensuring all staff are placed safe physical distance from each other. Having disinfectant products available in all the office, toilets, kitchenette, regularly cleaning surfaces, door knobs are also part of our safety regimen and mandated health protocols. GSC: Do you see ‘green shoots’ emerging and how is the industry adapting to the changing landscape? NAA: The remote working model has been tested and proven to be very successful during the Covid-19 shutdown. This has led many to look into flexi-office rentals. Also JULY – AUGUST 2020 39
NAFL ExcLusivE
the Government support in many areas where Ijari (registration of rental leases and agreements) is not needed to renew licences has saved many companies a considerable amount of their fixed cost of office rental. Office occupiers are now considering de-densification of workplaces, better building ventilation and cleaning, voice or motion activated doors and elevators to reduce the number of points of contact, and anonymous reporting of sickness The majority of companies renting office space expect almost 30% of their workforce to return to the office in a phased manner over the next two months. Due to space restrictions many staff are working in shifts or alternate days at the office, and this has been very successful. It gives the staff more flexibility and the work is accomplished. The above has resulted in employers rethinking of their work and office strategy. These flexible office space, flexible office hours, remote working, shifts among other innovative measures. Consumers will focus on their main priorities. We also witness less emotional and impulsive shopping. Savings and lessening costs are the new norm and also many services have been outsourced. The importance of health care services, food security, medical products and staff and vital logistics has been realized and greater importance should be directed to these main sectors for all countries. In hindsight, we
40 JULY – AUGUST 2020
all have to adjust and be prepared in these turbulent tomes. Prevention and protection are key to our survival. GSC: The air cargo sector has been reporting added business in some segments and required to re-format passenger seats and configuration to carry added cargo. Share your thoughts on this development? NAA: The air cargo industry has witnessed additional business as e-commerce business and transactions have grown eight-fold compared to pre-Covid19. The shipments of all desperately-needed emergency goods, perishables, medical supplies were transported by air cargo. Since most airlines had limited their operations and capacity, the national airlines gained more air cargo business and there was limited space on cargo flights, which let them to transform the passenger flights to transport cargo. This proved to be a successful idea. Many of the global airlines have successfully implemented this winning strategy. GSC: How important is technology in the new normal scheme of things and how is it enabling and empowering operation in the L&SC trade? NAA: Technology is very critical in these pandemic times and it enabled many businesses to work successfully during the shutdown. Now most of the transactions are being accomplished online and this model has proved to be very successful, cost-efficient
and attained the goals and objectives. Technology has also brought people together not physically but digitally in the cyber realm. Connected people from around the globe successfully and even conferences were converted online and were very successful. NAFL specifically held a successful over two-hour long ‘Open House’ zoom meeting that was very well attended by several members. Many companies had restructuring and now rely more on robotics, technology and available apps. GSC: How is the L&SC industry rising to the occasion and better contributing to ensure more streamlined and speedy transportation and availability of badly needed food, medical, pharma and protective supplies and other urgently required items? NAA: In this country uniquely we have a Minister for Food Security—HE Mariam Almheiri who recently also joined the Ministry of Presidential Affairs in a major UAE Cabinet restructuring. The Government has taken all necessary measures to ensure food security in the country. Thankfully, we have an agile and efficient Government mechanism whereby despite being very dependent on food imports, we as a country managed timely deliveries. Consequently, citizens and expatriate residents of the UAE have not experienced any shortage of goods and food provisions
NAFL ExcLusivE
in the countryâ&#x20AC;&#x2122;s hypermarkets. This also applies to medical and pharmaceutical supplies within the framework of nimble, responsible and responsive missives from the Federal Ministry and Departments of Health and Prevention. GSC: What opportunities and challenges confront NAFL going forward in the light of the pandemic outbreak? NAA: The opportunities follow from the growing importance now being given to the logistics and freight sector as it has been an acknowledged vital sector during the pandemic and instrumental in the supply and distribution of critically required goods notably in the medical and food provisions segments. The challenges are many as forwarders facing high cost issues while the import and export levels and volumes have decreased in some instances due to the pandemic and affordability by consumers. This is not just endemic to the UAE or the region but is also happening on a global level. Liquidity challenges, financing, inordinate client payment delays or payment defaults from the pandemic and shutdown of non vital sectors poses big problems for the industry. High staff costs during shutdown and less productivity and profits have negatively affected this businesses sector. This is also related to the fact that dependent and associated non-vital sectors were in total shutdown. Cargo delays globally have also resulted in corporates not being able to deliver on specified timelines and honour the contracts they have signed. Force majeure legal clauses are also being increasingly used to avoid contractual issues that are affected by the pandemic and global shutdowns. Many shipping lines have altered their routes depending on demand as many factories were closed in China for a protracted period. Trade lanes changed due to various country shutdowns and demand changes. GSC: How has the Government responded to the situation and how have new administrative measures and incentives boosted business? NAA: The government responded immediately with full support and rent payment postponements, licensing fees reduced and other measures. Wavers have also been liberally introduced. The
The challenges are many as forwarders facing high cost issues while the import and export levels and volumes have decreased.
Government is also continually reviewing the situation. Stimulus packages designed for the freight industry were also pledged. Companies were encouraged to use online services initiated by all Government and semi-Government offices. The Government has also conducted online meetings with businesses, trade groups and associations to speak and discuss industry issues, address them and prioritize industry solutions. Surveys are frequently conducted to check on industry issues and raising these points to higher authorities. The Government is also regularly examining returning guarantees, refunds, discounts, reduction in licensing fees, reduction in custom fees, extended credit lines, payment postponements and other actions to relieve financial pressures on companies adversely affected by the current situation. This dialogue and official conversations have been continuous ongoing between the government agencies and all the business groups and associations. GSC: What kind of a changed business landscape do you foresee for the industry post-Covid 19? NAA: There will be more emphasis on digitalization, more focus on last mile delivery and connecting to e commerce businesses and portals. There will also be more reliance on outsourcing. Companies will go asset light and use external human resources and other related services, assets, vehicles, call centers among other services. Etisalat offers great telecoms services for customized for the outsourcing sector. I see freight being increasingly driven more from online orders and online user-friendly applications. GSC: What areas do you see greater focus for NAFL and finally what is your outlook and corporate message going forward?
NAA: The greater focus of NAFL during this pandemic is to interface and work with the industry and member issues and put them forward to Government officials to work on solutions to ensure business sustainability and coordination. NAFL will offer members online services and continue our engagement with them, by webinars and online meetings to discuss all their issues. Offer more value added services online and face to face. Eventually to all our members, as they need our support the most in these difficult times. We will regularly connect members and associates with reputable traders and banking officials to support their businesses and offer them all the legal support to resolve their business issues GSC: Any general or specific comments or advocacy advisories you would like to articulate? NAA: We look forward to working handin-hand and closely interfacing with all the UAE Government offices and authorities to ensure that our sector grows and work on any issues and open up opportunities for the businesses and the country. We also request all Freezones to work closely and listen to the logistics freight investor needs as this sector is one of the main contributors to trade at a whopping 14 percent of GDP and is a labour-intensive industry continually creating new jobs. I feel reduction and rent wavers will surely help the foreign direct investors sustain their business in the UAE. In addition I strongly believe we should maximize our exposure to more and new markets and countries whereby we will increase trade and freight activities. The use of online virtual exhibitions, meetings and networking events will increase the flow of trade and positive exposure to our country. The national and international banks, financial institutions, venture capital organizations should work closely on assisting and financing SMEs and large industries. As it will surely positively impact the industry and reinforce more trust between the entities and also with the Government. Finally, I would like to place on record my thanks and appreciation to all front-line volunteers, health staff, the Police and Armed Forces doctors, other associated authorities, institutions and leadership for their commitment and untiring efforts in fighting the pandemic. JULY â&#x20AC;&#x201C; AUGUST 2020 41
Trucking indusTry posT covid-19: Technology perspecTive
The Supply Chain & Logistics sector is undergoing a technology based transformation While the global pandemic continues to take a heavy toll on multiple industry sectors, there have been technologydriven paradigm shifts in logistics and supply chain processes and systems thank to the ingenuity and resilience demonstrated by the industry affirms Gaurav Biswas, FounderCEO, TruKKer the regionâ&#x20AC;&#x2122;s first technology enabled truck aggregator.
T
he world has changed in multiple ways over the last few months as mankind has been hit by a global pandemic. We underestimated the virus, then were shocked by its spread, then panicked into lockdowns and then started to figure out ways to live with it until we find a suitable vaccine to get rid of it. During this time however, there have been fundamental shifts in the ways we communicate, educate our young, do business and keep the wheels of supply chain moving. The supply chain and logistics sector has shown great resilience and ability to transform post Covid-19. While most businesses have been shut down, retail has suffered with no physical sales, the logistics sector has continued to support the movement of pharmaceuticals, health care equipment, food and consumer goods across the world. The rise of e-commerce has accelerated as more of us now order online instead of going to the mall. Again, the logistics providers, while being overwhelmed have continued to deliver to sudden increase in demand from online orders. 42 JULY â&#x20AC;&#x201C; AUGUST 2020
Industrial cargo movements will see massive disruptions over the next few years due to efficiencies at ports, shipping lines, road borders and general impact on manufacturing and distribution businesses.
Technology in Road Freight Technology development and adoption are at an inflection point for the supply chain and logistics sector. The companies and teams that are able to innovate and adapt will end up being the next generation sector leaders and disrupt traditional businesses permanently. Technology will drive the following functions faster than it has ever done before: Digitization: More and more consumers, companies and supply chain participants will move towards digitization of all
processes and business functions. Logistics is very paperwork heaving. Companies like TruKKer have been pushing towards paperless transactions and this change will now further accelerate. TruKKer has been able to achieve 100% digitization in road freight documentation. Electronic procurement and use of platforms: There has been significant demand erosion and the impact has made companies more price sensitive. This will give further boost to digital platforms like TruKKer that create the utilization based efficiencies through shared economy principles. Automation at multiple levels: In the road freight sector, there are multiple tiers of sophistication amongst the various participants. Each party has to be addressed accordingly towards an upgrade of the
Trucking indusTry posT covid-19: Technology perspecTive
entire ecosystem. The technology to be developed, adapted and implemented for a truck driver has to be very different to that for an international freight forwarder. Collaboration through integration: The supply chain industry is one of the most complex with regards to the number of parties that are involved in movement of cargo. To enable technology, frameworks for collaboration have to be created with multiple parties namely customs, port authorities, clients, shipping lines, transporters and other regulators and stakeholders. TruKKer is progressing with multiple collaborations. New Age: All the hi-tech stuff of new age technology like AI, ML (Machine Learning), Blockchain, IoT and other advanced knowhow have applications in road freight and logistics. TruKKer believes that autonomous
vehicles will be commercially adapted in trucking much faster than cars.
Impact on the regional transporters In the MENA region, businesses will have to deal with a double impact of Covid-19 and also low oil prices. As cities and regions come out of lock-downs, there is constant pressure on the health care infrastructure and many businesses continue to operate at lower outputs. The regionâ&#x20AC;&#x2122;s infrastructure spend along with some large government backed projects might face slow down in the medium term with resulting impacts on multiple sectors. As a result, almost every sector will be looking for cost saving measures.
Efficient and technology based operators like TruKKer that are also adequately capitalized to capture market share will benefit and accelerate their growth. In the traditional fleet owning companies, most trucking businesses have recovered since May 2020 as trade and industry start coming back from lock down. However, the individual owner operators and small road freight brokers involved in the international (cross-border) cargo movement business continue to suffer due to border closures. The suffering of the UAE transporters has been acute as their jobs have been replaced by the Saudi origin trucks. TruKKer has tried to utilize a lot of such trucks for its other projects and lanes within the UAE including for port movements, especially as many clients have started moving cargo by sea JULY â&#x20AC;&#x201C; AUGUST 2020 43
Trucking indusTry posT covid-19: Technology perspecTive
Gaurav Biswas Founder & CEO, TruKKer Founded in October 2016, TruKKer (www.trukker.com) is the first technology enabled on-demand truck aggregator in MENA operating in the B2B goods movement segment and also in the B2C residential relocations market. With TruKKer, Gaurav has rebooted the logistics business to transform into advanced technology-driven transportation startup. Within a few months, TruKKer scaled up operations in the UAE and the wider GCC. Gaurav is focusing all his energies and learnings towards the success of TruKKer, motivated by the high positive impact the venture can have on the lives of millions of truck drivers and owners. He is currently focussed on disrupting the long haul goods movement industry by addressing the key pain points on both sides of the transaction with efficient use of technology and streamlined operations. TruKKer operates all over GCC and North Africa with the on-ground presence in UAE, Saudi Arabia, Egypt, and Bahrain. TruKKer operates 22,000+ trucks and services 500+ retail clients across its markets. TruKKer services 350+ businesses daily for their cargo movement requirements including line haul, port movements, home relocations and last mile. TruKKer has on-boarded 12,000+ drivers and trucks and employs an average 180-210 drivers and trucks daily to service its demand. TruKKer sees a huge opportunity in a US$ 20bn road freight sector only in the GCC with additional market size available in North Africa, Middle East and west Asia. As a manifestation of the new normal, the industry is ripe for technology-based aggregator given huge fragmentation in supplyâ&#x20AC;&#x201D;85% of fleet belongs to small or individual transporters; and primitive business processes.
due to restrictions and very high pricing for international road freight. TruKKer estimates that road borders will start relaxing from July 2020 and the sector will have a V-shaped recovery catering to large volumes of cargo waiting to be moved as a result of the pent-up demand in Q22020.
Competition and structure The road freight sector is extremely fragmented across the world and the MENA region is no different. There are thousands of individual owner operators, along with similar fragmentation in the brokerage business. The MENA full truck load (FTL) sector is highly competitive and analytical information is missing almost in its entirety. The large fleet owners make less than five 44 JULY â&#x20AC;&#x201C; AUGUST 2020
TruKKer has on-boarded 12,000+ drivers and trucks and employs an average 180-210 drivers and trucks daily to service its demand.
percent of the total supply of trucks and they control the long term contracts with large enterprise clients. Small fleet owners and single owner operators service as sub contractors to large fleet companies or freight forwarders and other brokers. Digital freight platforms like TruKKer are disrupting this industry structure by enabling the small transporters and individual owner operators with advanced tools, technology interfaces and sophisticated customer service to service the large enterprise clients and SMEs with standard service quality and much better pricing.
Technology triumph The technology allows for significantly leaner operations and ability to scale across markets and geographies. TruKKer is constantly automating its processes and
also its interface with demand and capacity along with addressing every friction in the transactional process. Execution focus is the key to success at TruKKer. Technology is an enabler but nothing is more important than operational and process excellence in logistics. TruKKer has been investing heavily into the supply infrastructure and driver welfare to ensure that one of the hardest jobs is acknowledged. Over the next few months, TruKKer will be announcing major programs focussed on driver welfare and infrastructure for enhanced cargo safety and security. Digital freight platforms like TruKKer are transforming the fragmented, unorganized and inefficient road freight sector into reliable, standardized, and optimized services with significant commercial and environmental benefits for the entire ecosystem.
Subscribe today
PLEASE FILL IN ALL FIELDS IN BLOCK CAPITALS Name:
Company Name:
Position:
PO Box:
Telephone:
Mobile:
Annual Subscription in the UAE (US$ 30.00)
City:
Country: E-mail:
Annual Subscription in the GCC (US$ 65.00)
Annual Subscription outside GCC (US$ 100.00)
Signature ____________________
Date:_______________
P. O. Box 49784, Dubai, UAE, Tel: 04 3795678 Email: info@signaturemediame.com
Call: +971 4 3795678 or e-mail to info@signaturemediame.com
New PaNdemic Paradigms
Tranzone Tactics adopts new protocols in pandemic times Tranzone has been able to maintain its work momentum and usher in new performance efficiencies even in the long shadow of the pandemic thanks to new work protocols, guidelines and regulations. Overseas expansion is also in the horizon, affirms Biju Joseph, the companyâ&#x20AC;&#x2122;s Operations Manager.
46 JULY â&#x20AC;&#x201C; AUGUST 2020
New PaNdemic Paradigms
I
Biju Joseph (middle) with colleagues in Tranzone FZCO in Dubai, UAE.
t is now abundantly evident that the raging corona virus pandemic has dented processes and disrupted operations of virtually every industrial sector in the world. The logistics, supply chain and distribution chains have also been adversely impacted following tactical moves by companies requiring employees to stay home to limit the spread of the virus. This has led to reduced inventory production in many sectors, and the resulting shortages have been felt in many industries, including that of medical supplies, which has seen emergency purchasing push demand. Distributors buying goods from factories that have continued or resumed operations have had their own struggles. B2B resellers may find it difficult to ship items from manufacturers to their international clients because efforts to contain the virus have led to policies restricting air travel and ocean deliveries. Global Supply Chain recently caught up with Biju Joseph, Operations Manager, Tranzone, Dubai, UAE where he heads the warehousing and distribution systems to discuss how the pandemic and efforts to reduce its spread are impacting global supply chains as well as identify the lessons companies should take from this emergency. The impact of the pandemic has been widespread and all-pervading, and logistics services providers are doing their best to rally and keep operations running as smoothly
and as efficiently as possible. In this exclusive interview Biju Joseph provides his take and dwells at length on all measures taken to keep interruptions to the minimum and increase efficacy and ensure streamlined operations. Global Supply Chain (GSC): Briefly, what are key takeaways and broad observations of the Covid-19 pandemic from the Tranzone corporate perspective on your warehousing operations? Biju Joseph (BJ): As a result of Covid-19, we have had to make a number of changes to the way we operate to ensure the safety and wellbeing of our employees. To maintain operational continuity in the warehouse and with physical distancing in place, we implemented a 24h-hour split shift operation reducing the number of employees working at any one time. By taking suitable and effective action it ensured our employees maintain social distancing whilst working in a safe and hygienic environment. It also guaranteed that operationally our quality and service levels were maintained at optimum levels with shipments being both processed and dispatched on time. GSC: How is the onset of the pandemic impacting your warehousing business? BJ: As a Pharmaceutical 3PL we are exempt from the lockdown or any mandatory restrictions put in place by Dubai Government. As a vital sector it was important that Tranzone maintained
operations as normal with essential employees only working on site. All remaining support functions and departments worked remotely. So as far as our customers were concerned it was business as normal whilst maintaining and enforcing strict health protocols and safety procedures. GSC: How much of your professional work environment and ecosystem in the warehouse has changed as a result of the Covid-19 virus onslaught? BJ: On account of the nature of the products we store, we operate in a very clean and semi-sterile environment. Hand sanitizer stations have always been in place throughout the warehouse and offices. The real change for the employees has been the wearing of masks and adjustments to the shift patterns to maintain social distancing. GSC: With the Pharma, Food, Cold Chain and critically required medical / PPE (personal protective equipment) supplies industry in the frontlines of the fight against the virus, how have your priorities been rearranged and what kind of new demands and pressures are being put on your business now? BJ: Currently nothing has really changed in the way the operation functions day to day. Tranzone operates a very flexible business model which allows us to adjust or modify the way we operate fairly quickly and without detriment to service we offer our customers. What we are now seeing are JULY â&#x20AC;&#x201C; AUGUST 2020 47
New PaNdemic Paradigms
more enquiries from European companies for both storage and distribution. GSC: How can the pharmaceutical industry and specifically ‘warehousing’ better prepare to possibly avert and deal more effectively with this current situation? BJ: Firstly, given the sensitive nature of the business we operate in, we definitely need to create a safe work environment for the employees to work safely and comfortably. This can be achieved by reducing the on-site presence to essential workers only. We have increased the warehouse operating hours by adding additional shifts. This ensures that productivity and customer service levels remain uncompromised but with less employees in the warehouse at any one time. We need to continually remind and educate employees on how to prevent infection. The wearing of Personal Protection Equipment (PPEs) in the workplace is important. Washing and sterilizing hands on entering and leaving the warehouse is now compulsory. We ensure adequate stocks of PPE on site to maintain these levels of personal safety. Finally, it is vital to plan and prioritize operations and the workload daily. As the old Benjamin Franklin adage goes—‘If you fail to plan, you are planning to fail!’ GSC: How can the pharma logistics services providers such as Tranzone better contribute to ensure more streamlined and speedy transportation and availability of badly needed pharmaceuticals and protective supplies? BJ: Unfortunately, there are some things you can’t control. For example, flights being cancelled or shipping companies changing the departure date as a result of the impact Covid-19 are clearly outside of our jurisdiction. What we can do as a business is to ensure we have more options available in case of cancellations. In light of what we’ve seen we have started to increase our portfolio of service providers giving the operations team more flexibility or choice. Internally we’ve already made changes to meet the growing demand. As part of our business continuity plan we’ve made those adjustments that will ensure if we again face another global pandemic we are ready and prepared. GSC: With a virtual paralysis and freeze in global aviation, how gravely might this 48 JULY – AUGUST 2020
Biju Joseph has almost two decades of experience in the supply chain and logistics industry with specialization in the pharmaceutical and life sciences sector. As Operations Manager, Joseph is responsible for the entire warehousing and logistics operations that netted over AED 30mn (US$ 8.2mn) sales revenue last year.
affect the pharma chain and warehousing segments? BJ: The freeze in aviation has impacted not only pharma but every product and industry. What airlines did very well was to realize the global impact this situation would have on Pharma and other essential products and make these flights a priority. The biggest impact to the customer has been the increase in freight costs as a result of less flights, high demand and available space on these flights. GSC: Briefly, what lessons to date are we learning from the Covid -19 outbreak as far as the pharma supply chain / warehousing is concerned? BJ: As a business you have to act fast and make changes. This virus has forced many businesses to re-evaluate and reboot their business model. When faced with a global challenge like Covid-19, you can either take your time making the necessary adjustments or like Tranzone you react quickly taking all necessary precautions to avoid operational failures, reducing the risk on employees,
maintaining service levels and the supply chain of pharmaceutical products. This is also very evident around the world. Countries that were quick to respond to the risks of Covid-19, and embrace enforced lockdowns and change were able to overcome devastating effects or lessen the fallout versus those that didn’t and resisted change or didn’t react by taking the necessary precautions. GSC: What measures has Tranzone taken to better equip its warehouse team and maintain a safe environment for the employees? BJ: We have a well structured plan and playbook to ensure safety in the workplace. PPEs, masks, gloves and hand sanitizers are liberally used. We have 24-hour split shift operations to minimize the number of employees working at any one time. At another level, we encourage remote working for those that can. This has helped reduce any unnecessary active and employee density in the workplace. We have hand sanitizers placed at multiple locations in our offices and warehouse premises. Furthermore, all employees and visitors have their temperature taken before entering the building. GSC: How is the healthcare-life sciences warehousing different from other industrial warehousing sectors? BJ: The obvious and main difference is the condition our products need to be stored. Pharma plays a key role in the health and wellbeing of everyone. These pharma products are key to maintaining a healthy lifestyle and have to be stored and transported under very stringent and properly enforced temperature and qualitycontrol conditions. GSC: What are your goals short and long term going forward? BJ: For the short term, Tranzone will continue to support its customers through this difficult period by offering the best service possible whilst maintaining a safe working environment for the employees. For the long term, expansion plans are on the cards. Tranzone plans to open an independent operation in Oman. Initially this was scheduled for 2020 but as a result of Covid-19 has now been pushed back to 2021. In addition, we looking to increase our market share in Saudi Arabia utilizing our five pharma warehouses located in Jeddah, Riyadh and Dammam in the Kingdom.
OpEd COntributiOn
Protecting supply chains during the pandemic Anas A. Abdul-Haiy, Director and Deputy CEO, Proven Consult, shares his insights on how businesses that shift towards automation and digitalization need to focus on finding new executive talent for implementing strategic and analytical functions of supply chain management.
simulations, businesses can predict the impact of a sudden decline in demand in one country that can impact the entire supply chain. Live tracking the sales, shipments, and orders with minimum latency will help businesses to identify surge or decline in demand and these data can guide the decisions regarding the production levels.
the digital work environment and communication channels to continue their operations remotely. Departments such as Marketing, Finance, and HR have moved to virtual desks. While these techniques act as a solution to cope with the supply chain crisis, it is the principles that are leading the decision making.
End-to-End digitizing
New Principles for sustainable Supply Chain
Having a cloud-based or web-based ordering system, allows businesses to act on shifts in demand proactively. Creating an end-to-end digital IT ecosystem is key to drive and minimize the latencies. However, to track actual production, inventory levels, and shipments, businesses must leverage various â&#x20AC;&#x2DC;Internet of Thingsâ&#x20AC;&#x2122; technologies together to bridge data between various processes. Starting from placing the order or query to the actual production and distribution, these various processes in the value chain funnel need to be digitized to enable faster decision making.
Automation for agile Supply Chains
Anas A. Abdul-Haiy
A
s the world is battling against Covid-19, the pandemic has had an uneven effect on the supply chain industry. Industries such as automobiles, travel, consumer goods, electronics, and retail have been profoundly impacted. The supply chain economy has a large and distinct impact on economies of the world that is driven by industrial activities and innovation.
Data leading the way Having a data-centric approach towards supply chain management is making suppliers more agile in their operations. Using predictive modelling and data
While the manufacturers are looking for alternate vendors for their critical components, the reduced labour force and increased demand have led to increased lead time. Accelerating production and reducing manual interventions in the business processes are critical to solving these problems. Suppliers must develop greater automation capabilities to accelerate production and minimize manual interventions in the business process. Using IoT and robotics, businesses can fast track assembly lines, inventory management, and data analytics.
Embracing the digital workforce: For manufacturers, labour shortage and replenishment serve as focal points for operations to manage ramp-up in production after temporary shutdowns. Therefore, businesses are embracing
Diversifying the supply chain will not only make supply chain reliable also help businesses to optimize cost. Businesses can source components for new products from low-cost sources and can launch new products at a lower price to boost their sales. In the immediate term, organizations need to take steps to stabilize supply chain operations by conducting risk assessments and implementing business continuity plans using crisis-management teams.
Crisis Management for short term impact To address the volatile nature of current supply chain operations, organizations should mobilize a crisis-management team or a war-room setup that has the power to make quick, analysis-based supply chain decisions. Analysts should examine supplier delivery performance, deviations from plans, canceled orders, fulfillment rates more frequently to identify any potential supply chain issues.
Optimizing HR strategies While protecting supply chain businesses is paramount for economies; at the heart of this crisis, people are most affected. Protecting the people working in the supply chain ecosystem must be a priority for businesses amidst the pandemic. At an unprecedented time of pandemic threats, businesses must make quick decisions led by talented executives to implement new policies and standards to the ground level. JULY â&#x20AC;&#x201C; AUGUST 2020 49
ThoughT Leadership: Tom Craig
Action Plan for post-pandemic Supply Chain Management
Covid-19 has validated the criticality and strategic importance of supply chain management – that is a given.
In this thought leadership contribution, Tom Craig, President LTD Management, Pennsylvania, USA, a leading authority and professional consultant on logistics and supply chain management and regular contributor to Global Supply Chain examines the best case scenario for the restoration of normalcy in a sector turned on its head and ravaged by the pandemic — Editor
F
irstly and clearly, the global pandemic is not over. Its impact is still being felt in economies, industries and in markets around the world. How businesses come out of this will differ—from restart to rebuild. It has shown to be the operations backbone of retailers, e-tailers, and manufacturers. Supply chains and their transportation and logistics components are essential services after all. It has been nearly impossible to come through the coronavirus without a changed supply chain management… and it raises a question. Has Covid-19 shown that supply chains were in operating ruts—precoronavirus? Or, in another way, has it taken a global pandemic to make needed changes in SCM? So, what now? It is time to build on what was done—the good and the flaws that were exposed. This is an action plan that supply chain management people can use to put in place for the new supply chain management.
No cookie cutter approach What I am presenting may not apply to supply chains across industries, market sectors, and the world. Each business has been affected differently by Covid from none or little to extensive. However, there are changes and a new 50 JULY – AUGUST 2020
supply chain. While every point here may not be relevant to every business, it does present thoughts to consider for the new supply chain management and new economic and business reality that is being formed. Some of the changes that are happening are overdue, call it pre-Covid. An example is of firms that are doing SKU (Stock Keeping Unit) rationalization which is a subset item for inventory and warehousing. Others may have been held back—but that was then and this is now. Several of the items contain talking points that appear in more than one action item. That reflects the nature of supply chain management. STRATEGY: This is your starting point. This involves a cohesive plan for where you are going and how you will get there— your new supply chain management. This is what will be done and how it will be implemented and executed. This involves the what, the how, the why, and the steps. It should include collaboration and buy-in from other areas in the company. The strategy should be about more than fixing problems that the coronavirus exposed. This is your clean sheet of paper. It should reflect how your end-to-end supply chain should be designed and managed for viability. Here are two approaches for your assessment: Upstream / inbound and downstream / outbound / fulfillment-these are the two
Tom Craig sections of the end-to-end supply chains. These are the parts that had to deal with Covid. Think about that and all you have been dealing with.
And / or Inside the four walls and outside the four walls (This is a variation of warehousing and transportation.) Much of your supply chain is outside the four walls of distribution centres, factories and stores. Four-wall myopia limits seeing the endto-end supply chain and its complexity. In turn, this view can impact how well your ERP system functions. This leaves a hole in lean efforts. Do not miss the big picture where so much goes on.
ThoughT Leadership: Tom Craig
These are different from how supply chains have been traditionally structured, and that presents opportunities for new ideas. This includes the usual operation as to stop-go / node-link. This can help with streamlining how products move and sit. STRUCTURE: There are three parts to the foundation and formation of your supply chain. Process: This should be streamlined. Gaps, redundancies and unnecessary actions ought to be corrected. This is for both operations and planning. Technology: This will be a big issue for your supply chain. More will be in the Technology section. Organization: Some of this is reflected in your assessment for your strategy. Think of a shift from the usual transportation and warehousing to something more relevant to your new supply chain—such as upstream and downstream. Procurement and the upstream with its transportation focus should be brought
together into one operation. Having them in two different groups in the company misses performance improvements, lessening risk, and improving resilience. Technology should be embedded in the organization. Technology is important to what is needed. So they should be part of the supply chain management organization. They should also interact with the corporate technology organization. Think about segmenting the activity by common supply chain requirements. This is different than segmenting by customers— some kind of 80/20 view. The attention will also reduce risk and increase resilience by designing and placing resources where most needed, important, and with clear roles. SUPPLY CHAIN COMPLEXITY: What has happened is more than a bullwhip effect. The supply shocks and then demand shocks showed the complexity of supply chain management. It was always there but hidden with buzzwords of agile, linear, and others. Now
the complexity, nonlinearity, and supply chains within supply chains were exposed. This is especially so with the upstream section which often gets less attention. Now you have recognized it. What do you do about it? Your answer is shown in the Structure, Resilience and Risk, and other parts of the action plan. RESILIENCE AND RISK: A hot pandemic buzzword for supply chains is resilience—the ability to recover. Now against the background of a global pandemic, some of this is a bit of stretch. Now given what supply chain management has done and has struggled with means they are critical to both operations and the recovery effort. Here are two areas for you to consider for your resilience study. The first is transportation and logistics activities, both those inside your company and those outside of it. They moved your products. Imagine what may have happened if they had not performed as they did? They JULY – AUGUST 2020 51
ThoughT Leadership: Tom Craig
are fundamental to your company. They deserve an Oprah shout out. The second is technology. Think about drones and warehouse robotics—think contactless. Tech is not affected in the same manner as people by a pandemic. Risk has always been a factor in supply chain management. Insurance has viewed it in terms of assets. But the coronavirus has shown it is much more. Transportation and logistics parties and infrastructure should be included. Think of the chain of custody. That is something that was missing before in risk assessment, identification, and mitigation. All the parties involved with an order, with a shipment. Those you know of and see and those you do not.
Upstream Look at upstream and all the parties including your suppliers and your suppliers’ suppliers— and so on. Think of how these suppliers may provide across product categories, make assemblies and components that go into multiple products. Supply chains within supply chains-nonlinearity. Map your supply chain. This is important. This includes all the participants and stakeholders. Look at the complexity. See possible supply chain weak spots—risk. Some have higher risk as the pandemic showed. I have a question for you. How does any outsourcing you have done of your transportation or logistics play against the pandemic themes of increased resilience and reduced risk? This is not looking at why you outsourced, instead, this is about the R&R (Response & Recovery) tests and whether you should bring any of it in-house. Parameters to be considered include transportation, warehousing and procurement. 3PL—think about it. TECHNOLOGY: Even before coronavirus, technology for SCM was getting attention. Now it is getting more attention—some for use with resilience. Against a list of all the technologies, some you may want to consider are: Data and Analytics: There is an incredible amount of data in the end-to-end supply chain that can be analyzed for management, improvements, savings, and performance. It would leave your spreadsheets in the dust. Digitization: This is a way to get needed end-to-end data with the many parties 52 JULY – AUGUST 2020
involved with supply chains. With it, the supply chain can be streamlined as compared to paper documents. Think of the purchase order, bill of lading, and using the bill of material in new and better ways. These are just starters. Blockchain: The digital ledger seems to have a way to go to reach the potential that is mentioned as to visibility and track and trace. Blockchain enthusiasts, right now, have a simplified, linear view of supply chains. The present approach misses many parties involved in the movement of orders. This may mean holes in the visibility and risks by not maintaining the chain of custody. All this said you should get involved with it and lead your company’s effort. Contactless: As mentioned, this has to do with technology not catching diseases. This domain includes warehouse robotics, drones and driverless trucks. These and others can increase resilience.
Review data sources If you do not have the deep pockets and resources for the kind of technology mentioned here, then focus on your supply chain process as the way forward. Review your sources of data and all the parties involved with your operations and planning. See where you can reduce who all are involved and smooth what is done and how as a way to improve resilience and mitigate risk. Furthermore, there will likely be pressure for you to control and reduce costs as businesses start back up. This is the case even more so, with the recession. There may be fewer transportation and logistics providers to negotiate with, including those you worked with before all this happened. At the same time, you may be dealing with the costs to restart your supply chain and restock inventory. So there may be conflicting challenges for you. Carrying additional inventory is a possible resilience tactic. That also means you may need additional warehouse space.
Eliminate meaningless metrics I hope that the new, post-pandemic supply chain management gets rid of meaningless performance metrics, such as supply chain costs as a percent of sales or transportation as a percent of revenue. These are poor metrics that have nothing to do with SCM performance. Use the data
and analytics for performance measures that are relevant to the C-suite—not ones that are internal to supply chain management. If your company is involved in e-commerce and looks to hold the sales increase it picked up during the coronavirus from online or is looking to step up e-commerce efforts, this should get top attention.
Know the difference The reality of online sales has been proven numerous times and they may be required as an effect of the pandemic. You should understand the differences between the end-to-end supply chain for e-commerce versus your traditional business—including perfect order delivery speed. There are discussions on moving production onshore. That is a matter of the tradeoff in product costs vs. higher resilience. You may be asked to develop a way to transfer your sourcing from a certain country to another or to reshore / onshore / nearshore it. This is not an overnight project. You should also consider a transition plan between where you are now and where you want to be.
Conclusion:
There will be a new, post-pandemic supply chain management. It will recognize resilience and risk. Your challenge is to develop the action plan and strategy to lead your company with this new supply chain and the new reality it will be working in. You should have similar exchanges with your end-to-end supply chain participants. Improving your resilience and reducing risk is not enough. It is not a standalone endeavor. You need others, starting with the ones you have identified as critical, to also do their action plans.
Final Note:
The longer the pandemic goes, the greater the change I see in a new reality. It will run the gamut Supply Chains, container lines, transportation, logistics, retail, manufacturing. This is more of a rebuild than reset and is in concert and conflict with less risk and more resilience.
Autonomous Vehicles
UAE ranks in top 10 on 2020 Global Autonomous Vehicles Readiness Index UAE leads the way in change readiness for technology infrastructure, mobile data speeds and individual readiness
T
he UAE ranks among the top 10 countries in the world for the third consecutive year when it comes to readiness to accommodate driverless vehicles, according to KPMG’s 2020 Autonomous Vehicles Readiness Index (AVRI). The third edition of the study, which evaluates the preparedness of 30 countries globally, places the UAE in eighth position, up one place from last year’s rankings despite the addition of five jurisdictions. The 2020 KPMG AVRI assesses the level of preparedness and openness of various countries to autonomous vehicle technology, adoption and their progress in making driverless cars a reality. The main indicators of measuring a country’s readiness and progress in furthering AV deployment and innovation are: policy and legislation, technology and innovation, infrastructure and consumer acceptance.
UAE ahead of 0many developed nations The UAE ranks ahead of the United Kingdom and Denmark and after Singapore, the Netherlands, Norway, the United States, Finland, Sweden and South Korea on the AVR Index. As the world’s most innovative countries continue to make driverless cars a reality, the UAE scored highest among the 30 countries on measures of change readiness for technology infrastructure and mobile data speeds under the infrastructure pillar, as well as the readiness of individuals under the consumer acceptance pillar. The UAE also scored highly for its government’s overall change readiness and consumer information and communications technology (ICT) adoption (ranked second) in addition to ranking third on a measure
of efficiency in their legal system in challenging regulations. “Driverless cars will likely transform the future of transportation and their use may expand exponentially. The initiatives undertaken by the UAE Government to develop smart technologies has facilitated the nation in making automation and AVs a reality,” commented Ravi Suri, Partner, Global Head of Infrastructure Finance, KPMG Lower Gulf, addressing the transformational potential of adopting AV technology in the UAE.
Vision for adopting technology As part of its vision to become one of the most technologically advanced nations in the world, the UAE is well positioned in
technology adoption preparedness with an appointed minister of Artificial Intelligence, and the 2019 UAE National AI Programme which drives its use to enrich and enhance every sector in the country. The Autonomous Vehicles Readiness Index (AVRI) is intended to provide an understanding of various countries’ preparedness and openness to AV technology. Thirty countries were included in the AVRI based on economic size and progress in adopting autonomous vehicles. Countries were assessed on 28 different measures within four pillars: policy & legislation; technology & innovation; infrastructure; and consumer acceptance. Each pillar has equal weight in calculating a country’s overall score and consists of a combination of primary and secondary data. JULY – AUGUST 2020 53
GCC Food SeCurity
Food Security is everyone’s responsibility in the GCC Although the Gulf Cooperation Council (GCC) states have limited climatic capabilities to perform traditional agricultural activities, food safety and security are not an issue because the states are capital-rich and have no foreign exchange limitation on food imports, writes Satvik Jaitly, Consultant, Food & Nutrition, Frost & Sullivan.
D
ue to their robust fiscal position resulting in high buying power, the GCC countries have traditionally been less susceptible to price risk than other food importers. As a result, in 2019, the GCC member countries—United Arab Emirates (UAE), Kingdom of Saudi Arabia (KSA) and Oman—were ranked as the most food-secure in the region and amongst the most food-secure countries in the world. The volatility in oil demand and trade disruptions due to the ongoing Covid-19 pandemic has raised concerns about the current status quo and the future outlook of food security in the GCC. No product or commodity carries the immediacy or political sensitivity of food. It is noteworthy that GCC countries are food-secure but not food self-sufficient; food security does not equal self-sufficiency. Global food demand is gradually increasing and driven by regions such as APAC (Asia Pacific), which is the largest food producer and exporter in the world.
UAE: Taking a multi-faceted approach to positively impact the entire value chain
To improve its food security, the UAE has employed multiple strategies across the food value chain, focusing on enhancing domestic production, hightech agriculture policies, research and development policies, import policies, foreign investment strategies, subsidization policies, stockpiling strategies, and food loss strategies, among others. These strategies contribute to addressing issues of food security self-sufficiency, trade, resilience, and sustainability in various degrees. These initiatives are gaining considerable traction due to enhanced public outreach campaigns and continued stakeholder engagements between the government and the private sector. 54 JULY – AUGUST 2020
AnAlysis And upgrAdes Companies and stakeholders need to focus on an in-depth analysis of each segment of the value chain and up-gradation, keeping in mind the unique conditions and advantages that the UAE has, namely high-tech IQ and global accessibility. Hackathons for agriculture solutions and open innovation competitions are some of the avenues that can be explored. The role of consumer awareness cannot be ignored and the population residing in areas such as Dubai should be studied to understand the global palate and cooking processes, and how they can be utilized to minimize overproduction and food waste.
Oman: Refocusing on its agricultural roots
Oman has a long history of fisheries and agricultural activity in the southern Salalah region. With time and changing economical pursuits, the agricultural sector now needs to be modernized, especially in the fisheries, fruits and vegetables sectors. The key initiative undertaken and implemented by the Oman government is the Oman Food Investment Holding Company (OFIC). Value-addition through processing, enhancing nutritional value and the pre-existing positive sentiments of food products originating from Oman needs to be leveraged by the OFIC to connect with
Omani and GCC consumers.
Kingdom of Saudi Arabia: Earmarking significant investments for a food-secure future
In 2019, the Kingdom’s Ministry of Environment, Water and Agriculture initiated a multi-pronged, agri support program to help small farmers switch to organic farming and produce safe highquality food, preserve the environment and natural resources, streamline food consumption and irrigation water systems for production, and promote and support organic production. Through dedicated investments worth US$ 200mn, the government plans to increase organic production by 300% by 2030, along with other objectives such as utilizing highly profitable farming techniques as an important resource for the national economy. Grain farming, which has been partially banned in the Kingdom due to water concerns, needs to be re-evaluated with a strong R&D and technology intervention, especially in the areas of saltwater utilization for irrigation through desalinization or mineral research. Greenhouse cultivation also needs to be streamlined to develop farm-to-fork connectivity and larger enduser participation.
Maersk Group
DP World joins with Maersk-developed TradeLens to digitize global supply chains Søren Skou, CEO, AP Moller-Maersk
D
P World has completed the early stages of integration with TradeLens a blockchain-based digital container logistics platform, jointly developed by AP Moller–Maersk and IBM. In a press statement, Maersk announced that the collaboration between DP World and the TradeLens platform will help accelerate the digitization of global supply chains. DP World aims to connect all its 82 marine and inland container terminals, as well as feeder companies and logistics divisions with TradeLens. In 2019 DP World’s terminals handled 71.2 million TEU (twenty-foot equivalent units) containers from around 70,000 vessels. TradeLens brings together data from the entire global supply chain ecosystem including shippers, port operators and shipping lines. It also aims to modernise manual and paper-based documents, replacing them with blockchain enabled digital solutions.“The concept for TradeLens is that the shippers will be the customers,” affirmed Søren Skou, CEO, Maersk.“The revenue model will be that shippers will be paying for access to all the data on the shipments,” he continued. “Our pilot customers are interested in the new platform because they think it can help to manage their supply chain, improve visibility, make it more efficient and streamlined. We are building towards TradeLens becoming a business in its own right,” he added. Skou asserted Maersk envisions TradeLens operating as an “Internet of Trade.”
Digitization and collaboration will offer greater ease of doing business across the supply chain Enhanced operational efficiency For DP World the data from its integration with TradeLens will improve operational efficiency with earlier visibility of container flows across multiple carriers. Such visibility includes confirmation of the transport modality that follows the port stay for each container, which in heavy transhipment or rail ports enable better yard planning. It will also expand the capabilities of DP World’s digital platforms created to move online the management of logistics. The DF Alliance, SeaRates, LandRates and AirRates enable shippers to move cargo to and from anywhere at the click of a mouse, across DP World’s network and beyond.
Intelligent logistics “Our decision to team up with TradeLens is driven by our vision for intelligent logistics, reducing costs and creating value. DP World is working to deliver integrated supply chain solutions to cargo owners, backed by our global network of ports, terminals, economic zones and inland operations,” observed Sultan Ahmed Bin Sulayem, Group Chairman and Chief Executive Office. DP World. “By working with TradeLens we will accelerate the digitisation of global trade. Modernising the processes by which logistics operate is critical to building more robust and more efficient supply chains which will help economic development and generate more prosperity,”he noted.
TradeLens provides visibility across the entire supply chain, from booking to clearance to payments and is built on a wealth of input from the industry including direct integrations with more than 110 ports and terminals, 15+ customs authorities around the world and an increasing number of intermodal providers.
Adopting the TradeLens Platform “It is very encouraging to see the continued adoption of the TradeLens platform among global logistics players as it helps global supply chain customers expand and explore the benefits of digital documentation flows. In turn, the broadened geographic scope of the platform provides new opportunities for TradeLens ecosystem participants to innovate and develop digital offerings on the platform,”emphasized Vincent Clerc, CEO, Ocean and Logistics, A.P. Moller-Maersk. “We are excited to welcome DP World and eagerly await the creation of new potential ways of working for shippers and consignees in global trade. With four of the five largest global port operators actively engaged with TradeLens, the coverage of the ecosystem continues to expand rapidly,” observed Mike White, CEO GTD Solutions and Head, TradeLens. DP World has already connected Cochin Port (India) with the TradeLens platform via API technology. Plans to collaborate with other DP World business units, including the feeder line Unifeeder, have also been initiated. JULY – AUGUST 2020 55
Case study: ssI sChaefer–MovIng on
SSI Schaefer’s strategy to combat the pandemic
New Perspectives While the global fallout of the coronavirus is distressing, there is also hope. Companies around the world such as SSI Schaefer are leveraging tech to fight the pandemic, help businesses cope with the new normal and innovative strategies to empower their associates and communities.
T
he onset of the international pandemic for the most part in the first half of 2020 saw governments, companies and the public at large confront and corral the global Coronavirus challenge. In a relatively short span of weeks, national economies were upended and the global economy eventually ground virtually to a halt with draconian measures notably safe distancing and minimizing person-to-person contact firmly in place. The scale, intensity and prevalence of the coronavirus crisis have reshaped society in permanent ways, from governance, the way we conduct our businesses, healthcare, the economy, our lifestyles, our travel plans and more. It has been a cataclysmic transformation in the way we comport ourselves and operate our companies. We now have the new normals, new SOPs (standard operating procedures), new protocols, new perspectives and a completely new playbook of rules and regulations in this completely transformed economic ecosystem and global business landscape. So how are companies responding to this ubiquitous breakout that has consumed us all? As a test case and a snap shot of how large manufacturing and solution providers are functioning in a radically altered environment, Global Supply Chain conducted an exclusive and expansive interview with Matthias Hoewer, General Manager Middle East & Africa, SSI Schaefer, on a wide range of the pandemic 56 JULY – AUGUST 2020
issues and the company’s strategy to minimize the impact of the virus onslaught and tactical measures to bounce back. Global Supply Chain (GSC): Briefly, what are key takeaways, broad observations and general comments of the Covid-19 pandemic from the SSI Schaefer corporate perspective? Matthias Hoewer (MH): The rapidly spreading novel coronavirus has caused a situation that is hard to assess. However, we can control how we react. To this end we established a Covid-19 taskforce right at the beginning of the crisis. Since then we have been coordinating closely with internal and external sources on a daily basis to assess the current situation and the consequences for our employees, our customers, and our company. As a team, we try to keep the impact on our company as low as possible. GSC: How has the onset of the pandemic impacted your regional and global operations? And how can SSI Schaefer better contribute to ensure more streamlined operations to avert the impediments arising from the virus onset? MH: On the one hand, we continue to support our customers with enquiries on current projects or consulting for new projects. Both activities are primarily done by phone or virtually using video conferencing to minimize the risk of infection. We already have a digital toolkit in place to plan customer systems in real time.
The SSI LOGIMAT Vertical Lift Module is a small parts storage and picking system in one.
Pictures: © SSI Schaefer
Case study: ssI sChaefer–MovIng on
Ergonomic pick to tote work station for fast order picking.
SSI Schaefer designed and implemented a new logistics center with several warehouses and racking systems as well as the logistics software WAMAS® for the Chinese retail giant, Suning, in Nanjing (China). The distribution center supplies both, Suning stores as well as e-commerce customers.
JULY – AUGUST 2020 57
Case study: ssI sChaefer–MovIng on
ORCA, a pioneering cold-chain solutions and applied engineering solutions provider in the Philippines, announced the opening of the first worldclass chain storage system in the country. The Taguig (Metro Manila) facility significantly increases the country’s logistics capacity and preparedness for unforeseen events. SSI Schaefer in cooperation with ORCA, a pioneering coldchain solutions and applied engineering solutions provider in the Philippines, announced the opening of the first world-class chain storage system in the country. The Taguig (Metro Manila) facility significantly increases the country’s logistics capacity and preparedness for unforeseen events. The facility, which officially launched in February, is the latest collaborative project in the region following a larger ASRS contract for a cold chain food manufacturer in Singapore in late 2019 and adds a further 20 million kilos of frozen food capacity to the region. How can companies best prepare themselves for unforeseen
events? Matthias Hoewer offers a slew of viable solutions to these unanticipated challenges: High-performing warehouse management: Advances in management technology have meant that real-time inventory monitoring is now a possibility - the ability to know which product and how much is where, is critical during times of need. Without a Warehouse Management System (WMS) in place, it is difficult to track inventory and even more to accurately forecast what is needed to fulfill orders in the pipeline. Modern logistics software also helps customers with load planning, thanks to realtime data from its automated system.
Pictures: © SSI Schaefer
If a personal visit is necessary, our technicians will come to the customer’s site as long as it is permitted by and consistent with official regulations.
58 JULY – AUGUST 2020
With regards to our Customer Service & Support Department, we as a service organization are of course still available for our customers around the clock by phone, e-mail, and remote maintenance. Thanks to our predictive maintenance approach, which we have been promoting for years, many of our current systems are in perfect condition with proper technology in place. If a personal visit is necessary, our technicians will come to the customer’s site as long as it is permitted by and consistent with official regulations. On the other hand, as SSI Schaefer, we are also part of the supply chain. We continuously check our processes along the supply chain for their functionality to ensure business continuity. We are in close contact with our global production teams and re-evaluate the situation based on the latest news to implement quick countermeasures.
Case study: ssI sChaefer–MovIng on
It can provide recommendations instantly on the type of truck to best move products, which is essential during outages or when warehouses and logistics systems become inaccessible. Maximised storage: Much like the technology used to manage warehouses has advanced incredibly over the last 30 years, so too has the structure of warehouses. The introduction of simplified, rack-clad warehouses for example allows for faster construction times, maximisation of space and customisation for different storage systems whether its pallets or boxes, manual or automatic storage; allowing logistics suppliers to respond to all types of loading units, operations and necessities. Rack-clad warehouses are also more resistant to natural disasters, like earthquakes and typhoons. Also mobile racking systems and our SSI LOGIMAT® Vertical Lift Module should be mentioned in this context. With mobile racking systems, the storage capacity can be increased up to 90% whilst saving space up to 45%. The energy-efficient system is suitable for use in deep-freeze warehouses and can be combined with conveying systems and Automated Guided Vehicles (AGVs). The SSI LOGIMAT Vertical Lift Module is a small parts storage and picking solution in one system: it is a space-saving alternative in which ergonomics, safety, and cost-effectiveness are the focus. Lift modules are the ideal solution wherever optimum utilization of
the available storage height is a priority. Thanks to its compact design, the SSI LOGIMAT Vertical Lift Module fits into almost any space and works according to the convenient goods-to-person principle. Compared to conventional static storage systems, the system only requires one tenth of the storage space. Automate if possible: Automated Storage Retrieval System (ASRS), such as those used in the Philippines’ first cold-chain storage centre, works with rackclad structures to move pallets of food using cranes. Compared to conventional warehouses, ASRS involves minimal-to-no-human intervention in storage operations. This can improve food-safety, manage the loss of revenue through spoilage, create a safer work environment and ensure continuity when unforeseen events occur. Flexible and scalable semi-automated solutions: The demand for mobile transport systems in intralogistics is continuously increasing. This is because AGVs can be used to flexibly automate internal material flows. Users benefit from short implementation periods, since only minor infrastructure measures are required for implementation. In addition to the advantage of flexible space and room utilisation, the increasing demand is mainly due to the integrated Industry 4.0 functionalities that enable central process control.
In case we incur changes within our supply chain, we will develop suitable measures to minimize the risk. Due to strengthened prevention measures, including closed borders in different countries, deliveries to our factories or from our factories to customers may experience a delay. Our task force is always involved and tries to find a fast solution in close cooperation with respective internal departments and customers.
Personal protection of all employees at their workplace must be strictly enforced by observing hygiene rules and by reducing business trips and meetings to an absolute minimum. Furthermore, SSI Schaefer employees are urged to ensure that regulations issued by local government and health authorities are observed in every respect within their area of responsibility. In the course of these measures, all employees who belong to a risk group must be protected as much as possible.
GSC: What measures has SSI Schaefer taken to better equip its teams and maintain a safe environment for the employees? MH: In order to protect our employees globally, we have elaborated general guidelines that serve as a basis for the definition of local measures. Our global and local measures are in line with respective regulations issued by countries and their authorities. Comprehensive action points for our employees are extended home office regulations and alternative solutions for employees who cannot work from home as well as guidelines for individual solutions for employees with a shortage of childcare and regulations for people who return from risk areas.
GSC: How significant is the Middle East for SSI Schaefer and what is the outlook for the region? MH: SSI Schaefer’s association with the Middle East goes back to the 1980s, when our products were available through a network of local distributors. The Dubai Office is the nucleus of our business in this region. During the past several years we have moved away from being a stand-alone sales office to a more service and fulfillmentdriven hub for all of our activities including high-end contracts. This implies we have increased our activities portfolio and taken of the general contractor role from a project and service management point of view. This constitutes a big step forward for us because it enables us to provide a comprehensive, full life-cycle support for
all our activities for our clients, including consultancy and end-to-end solutions and related services. Regionally, SSI Schaefer MEA uses the same tools and resources that are used globally to design and plan the facilities for our clients. One of our biggest advantage is that we are maintaining a single point of contact with our customers by providing one-stop solutions with the full range of services: from standard industrial racking and shelving to fully automated products, from planning and optimization, to project implementation supported by our own installation and project management teams. In the UAE, SSI Schaefer products are increasingly finding greater applications in various industry sectors such as Retail, FMCG, Fashion and Automotive. We also work closely with third party logistics service providers-LSPs and premium auto dealers. The UAE is also a developed, mature and intensely competitive market and the challenge is to grow the market. The Dubai office oversees the Middle East and Africa, Pakistan and Cyprus. We are close to our customers and enjoy a professionally intimate relationship borne by our strong roots in local and regional communities we serve. Despite our German provenance and global status, we think local and understand local requirements. JULY – AUGUST 2020 59
Case study: ssI sChaefer–MovIng on
GSC: What opportunities and challenges confront SSI Schaefer going forward in the light of the pandemic outbreak? In which areas do you see greater focus for SSI Schaefer and finally what is your corporate message going forward? MH: The logistics industry provides services that no modern society can do without. It is the backbone of almost every sector, enabling companies to do their business around the globe. The Covid-19 pandemic is an example of how unforeseen events can lead to massive global disruptions within the global supply chains of products in almost every industry. In some industries, unforeseen events, such as natural disasters or the current coronavirus pandemic, lead to profound challenges. For the Food & Beverage sector for example, labour restrictions and panic buying put considerable pressure on logistics and resources. Modernizing, diversifying and increasing the efficiency of the supply chain builds a solid basis for a greater resilience with immediate cost and performance benefits. It is crucial that we use the possibilities that technological assets provide in order to ensure that global supply chains are well prepared for the unexpected. Together, more needs to be done to enhance the resilience of supply networks. GSC: What kind of a changed business landscape do you foresee for going SSI Schaefer post-Covid 19? MH: We assume that the coronavirus pandemic will have a significant and longlasting effect on global supply chains, which 60 JULY – AUGUST 2020
Pictures: © SSI Schaefer
The Middle East is a region where automation is increasingly becoming the norm and has been growing year-on-year thanks to growing customer demand for shortened delivery times and the need by logistics service providers to deliver costeffective services. Many companies need to move to a level of mechanical and technological sophistication where processes are facile and efficient and we will be making the case for companies to adopt new modules that bring higher ROIs and competencies in their systems. However, we do not advocate blanket automation and as we have demonstrated in Asia over the past decade, we automate just enough to manageable levels to suit local requirements.
Matthias Hoewer, General Manager Middle East & Africa, SSI Schaefer
Transparent and efficient material flow within supply chains can only be achieved based on high performing logistics software. in turn will have a huge impact on the global economy, businesses and consumers alike. We therefore believe that companies will put a greater focus on creating transparency in multi-tier supply chains. They need to understand their supply chains more deeply in order to build operational resilience. Organizations do not only have to know exactly how much inventory they are holding. They should also know how much inventory is available in their upstream and downstream supply chain and e.g. how to manage a sudden increase or decrease in consumer demand. Digitization has become even more important in this respect. Transparent and efficient material flow within supply chains can only be achieved based on high performing logistics software. At this point SSI Schaefer comes into
play. With our decades of experience and the wide range of products and services, we develop innovative concepts and solutions for the most diverse industries. Across six continents and following our corporate tagline Think Tomorrow, we shape the efficiency of global supply chains, taking advantage of opportunities offered by digital networking and transfer them to the world of complex material flows. Sustainability is another important point in this context. The age of globalisation is characterized by a connected population and a goods’ flow within a connected economy. The coronavirus crisis with its limitations and the resulting deceleration stands in sharp contrast to the“higher, faster, further”that has characterized our everyday life so far. Over the years, focus of most supply chains has been increasing profitability. Meanwhile, sustainability is more and more becoming a key factor of a comprehensive plan for future success, based on collaboration, proactivity, partnership and commitment to reach this goal together. As SSI Schaefer, we are an ideal partner and enabler of sustainable solutions, ensuring that the logistical flow of products is carried out in an innovative and sustainable manner.