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Link 23.indd 1 2/28/08 11:57:00 AM Link 23.indd 2 2/28/08 11:12:21 AM AD DHL Link 23.indd 3 2/28/08 11:12:24 AM Link 23.indd 4 2/28/08 11:12:26 AM 5 Designed and produced by Media One for the Supply Chain & Logistics Group Editorial Operating under - Dubai Chamber of Commerce & Industry Supply Chain & Logistics Group P.O.Box 34253 Dubai (UAE) Tel: +971 4 3962367 Fax: +971 4 3962337 E-mail: [email protected] Contact: Kanchan R. Vora, Office Manager Email: [email protected] E DITORIAL C ONSULTANTS : • Dr. Satish Mapara • Cliff Cuttelle • Ebrahim Vantra • Peter Roest • Jiby George • Dr. K.M. Madrecha • Sanjay Babur • Naveen Arun • Arun Prasad Shashi Shekhar Founder & Past President, SCLG Media One LLC P.O.Box: 72247 Dubai, United Arab Emirates Tel: +971-4-297 6987 Fax: +971-4-297 6988 E-mail: [email protected] Website: www.mediaonemiddleast.com Chairman, Media One Group Rashid Al Jaflah Vice President Aleem Aziz EDITORIAL PRINT Associate Editor : Chandrakanth R. [email protected] Journalist : Chiranti Sengupta [email protected] ONLINE SCLG e-News Editor [email protected] SALES & MARKETING PRINT Project Sales Manager : David Bhattacharjie [email protected] DESIGN & PRODUCTION Production Manager : S. Punyamurthy Head of Creatives : Yoosuf Hamid Graphic Designers : Brubex Castelino, Addae Johnson Photographer : V. Pandian CIRCULATION Magazine Distribution & Global Sales Sr. Supervisor : M.A. Suheal ONLINE Webmaster : Ramesh Nandi SUBSCRIPTION Northern Emirates Fujairah P.O. Box: 2604, Fujairah, U.A.E Tel: +971 9 2282495 Fax: +971 9 2282496 Email: [email protected] South Asia India Chennai: Regional Office SEA-Media One Pvt Ltd D 91, Community Hall Street, Aminjikarai, Chennai-600 106, India Tel: +91 44 42 07 6129 Em: [email protected] [email protected] Dear Readers, The dynamics of the cargo industry - air, sea or land – is exhilarating keeping every one in the industry on their toes, particularly those in the thick of supply chain in the Middle East, which remains the hotbed of all activities. The Middle East region has experienced good growth rates in terms of cargo movement. It is estimated that while world air cargo traffic will grow at an average annual rate of 6.1 per cent for the next two decades, three times the current levels, the Asian air cargo markets with domestic China and intra-Asia markets will expand at 10.8 per cent and 8.6 per cent annually, respectively. Though the International Air Transport Association (IATA) has predicted a slowdown in the growth of air cargo, the Middle East region will continue to have accelerated growth, spurred by innovative practices of carriers over here, including new routes development. This is just excellent and kudos to the professionals who have been working towards making the region a true logistics hub on the East-West axis. The going is good but the path is fraught with many challenges and I believe that the professionals in the industry have it in them to take on these challenges. Various practices and processes have to be reworked and rewritten as the industry will be impacted like never before by issues such as skyrocketing fuel prices; cargo security concerns post September 11; inter-modal transport competitiveness etc. I am sure that the industry professionals will equip themselves with knowledge and whatever that is required to negotiate in these exciting times. And the SCLG (Supply Chain and Logistics Group), as always, will work with various industry groups to understand the dynamics of the economy, per se, and look out for ways and means of keeping up the momentum of growth. We will constantly discuss the challenges in the industry and highlight the best-practices here so that all of us stand to benefit. As you all know the SCLG’s objective, among other things, has been to raise the overall standards of all industries on end to end supply chain. All rights reserved. The opinions and views expressed in this publication are not necessarily those of the publishers. Readers are requested to seek specialist advice before acting on information contained in this publication, which is provided for general use and may not be appropriate for the reader’s particular circumstances. The publishers regret that they cannot accept liability for any error or omissions contained in this publication. The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 5 2/28/08 11:12:29 AM Link 23.indd 6 2/28/08 1:29:26 PM CONTENTS 8 SCLG ROUND-UP • SCLG holds its first educational workshop 38 PRODUCT WATCH • OneSack Dunnage bags 9 HEAD TALKS • Dr. Satish Mapara 42 GATEWAYS • Kathmandu new hub for Air Arabia 12 RETAIL • Beiersdorf’s clear strategy 44 TRANSPORTATION • Sharjah sets to revolutionize traffic system 14 COVER STORY • Air Cargo industry in a tailspin 46 TRADE AND ECONOMY • Philippines President visits UAE to strengthen trade relations 20 WAREHOUSING • Amana - Fuelling industrial construction boom 48 HUMAN RESOURCES/ACADEMIA • Authentic personal branding 22 MARKET WATCH • Jafza to build free zone in Senegal 53 UAE INFRASTRUCTURE • Adding a new dimension to Umm Al Qawain 32 LOGISTICS • Health of Halal logistics 55 LEGAL OUTLOOK • Carrier of goods - It's risky business !! 34 MIDDLE EAST DEVELOPMENTS • Gateway to Saudi’s economic prosperity 57 EVENTS SPOTLIGHT • Oil and Gas Refinery Asia 2008 16 22 32 41 48 55 The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 7 2/28/08 11:12:34 AM 8 SCLG Round-Up SCLG holds its first educational workshop Supply Chain and Logistics Group held its first workshop in collaboration with iCognitive International of Singapore on January 28th and 29th at DusitDubai on Sheikh Zayed Road. This 2-day workshop focused on Supply Chain Logistics Finance Applicable to SCOR . SCLG is a non-profit organization that seeks to raise the supply management profession in the country and continuously develop its practitioners to the highest ethical and world-class standards, in keeping with its vision. Mr Shashi Shekhar, Founder and Past President of SCLG, welcoming Mr John Paul, MD, iCognitive, the trainer of the 2-day workshop focused on Supply Chain Logistics Finance Applicable to SCOR . Some of the participants of the workshop with John Paul and Shashi Shekhar John Paul, MD and Sonia Davoine, Corporate Communication Manager, iCognitive International with Nishat Siddiqui, Senior Manager, Marketing and Members Relatinship and Kanchan Vora, Office Manager, SCLG at the lunch break A brain-storming session at the SCOR Finance workshop. Seen are (L-R) Dharmesh Kalan and Sebastian Soares of Danzas, Abed Shaheen from Aramex, Prakash Rochlani of Danzas, Mark Wormald and Andrew Posa from Workz. This workshop was designed to provide a comprehensive examination of the SCOR model (Supply Chain Operation Reference Model) and practical knowledge of the link between company financial performance and supply chain management. It was designed to support organizations that are attempting to develop an operational/financial business case for supply chain management projects. Attendees of the workshop were extremely happy and found it comprehensive, informative and well organized. Every participant felt that the workshop should have been spread for a longer period since it was packed with so much information. SCLG organized this educational event with an aim to serve the Supply Chain and Logistics community by facilitating educational and training opportunities for professional development. This workshop was conducted by John Paul, who is an internationally acclaimed expert in Supply Chain Management and Operational Improvement for manufacturing and services. John Paul runs iCognitive International which is based in Singapore, is a very dynamic, innovative consultancy company offering excellence in Supply Chain. He has written numerous SCM-articles and has been lecturing in different European Universities (Paris 12 and ISLI in Bordeaux) and Nanyang Technological University Singapore, ESSEC Asian Campus in Singapore. He is currently an associate professor of the Bordeaux Business School (France). He holds a PhD researcher in Engineering Management, a Master ’s Degree in Industrial Logistics, a Masters’ Degree in Economics and an MBA in Management. Mr John Paul is interrupted for a picture during the workshop Mark Wormald and Andrew Posa from Workz engrossed in the lecture The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 8 2/28/08 11:12:44 AM SCLG Round-Up 9 Head Talks Dr. Satish Mapara decided to divide total membership into several business groups and councils, I got elected within SCLG with total committee members retained at 19 (of which nine members were elected and 11 members were selected by DCCI). With 40 years of extensive experience in supply chain and logistics industry, Dr. Satish Mapara is a versatile, multidimensional expert in the field with special focus in legal and commercial aspect of shipping, marine insurance and finance and banking. A Dubai resident of 23 years, Mapara set up GlobeApex Management Consultants in Dubai in 1987. Awarded with a doctorate degree in Maritime Law and Ship Management from Switzerland, Mapara is associated with Indian Merchants Chamber (IMC), Mumbai, Council of Supply Chain Management Professionals (CSCMP), USA and Indian Business & Professional Council (IBPC), Dubai. Apart from being an expert arbitrator on the Panel of Dubai International Arbitration Centre (DIAC), he is a life member of Indian Council of Arbitration and FACT of Federation of Indian Chambers of Commerce and Industry (FICCI). Here is an excerpt from the interview with The Link Magazine. Ho w d id y o u get as s oc iated with SCLG? I have been associated with Dubai Chamber of Commerce and Industry (DCCI) for a long time. When DCCI Mention some achievements that the SCLG has made so far and what are its future plans? SCLG successfully brings out two industry specific magazines The Link and Eblast in association with Media One Group. SCLG, with more than 600 members is undoubtedly the most prestigious business group of DCCI. It regularly organizes educational events, conferences, councils on the logistics and supply chain management to make the region aware of this discipline and how it can positively affect the bottom line of enterprises. By March 2008 SCLG will launch its Strategy 2012 which will earmark progressive, consistent steps that entire leadership is expected to follow to create benchmarks in the industry through networking, educational events, seminars and awards. For the last six months SCLG is engaged in nominating the Board of International Advisors. This will keep the industry abreast of best practices in global supply chain and logistics. What according to you are the major challenges for the supply chain industry in the Middle East today? One of the major challenges facing this industry in the Middle East is to create one-to-one relationship and networking opportunity for exchange of expertise among industry leaders based here. Another challenge is related to developing scientific approaches to evaluate the practical, periodical needs of several corporate giants actively engaged in this sector. SCLG should continue to recommend expert and result-oriented guidelines for bringing optimization in cost savings and revenue enhancement through HRD processes, job training and industry related educational programmes. SCLG is finding it really challenging to create awareness among industry practitioners about the SWOT analysis that plays fundamental role in manufacturing, process and services oriented industries. How do you balance a full time job with responsibilities of SCLG’s consultative committee? Balancing between full time office responsibilities and SCLG leadership team is in my opinion an art as well as science. One needs to be mature, focused and result-oriented to strike a proper balance. I am ready to go that extra mile along with my leadership team and other members of SCLG to benefit and service this branch of management. What is your advice to youngsters who wish to enter this industry? Youngsters, in my opinion, should first study the demand and supply philosophy of employment. However, I can confidently say that there exists ample opportunities in supply chain and logistics industry for all categories of work force - skilled, semiskilled and unskilled. This industry can offer promising future with lucrative salary, security and scope for further enhancement. Current statistics reveal the ratio between available and required staff in this industry is 3:10 and this disparity is set to continue for the next 15-18 years. So my advice to youngsters is to join this industry, stay, climb the ladder and retire with flying colours. The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 9 2/28/08 11:12:56 AM 10 About SCLG THE SUPPLY CHAIN & LOGISTICS GROUP SCLG BOARD OF DIRECTORS Shashi Shekhar Mishal Hamed Kanoo Emirates SkyCargo Kanoo Group Mohammed Sharaf Clifford Cuttelle Dubai International Tagstone Sanjay Naik David Wild Fadi Ghandour Michael Proffitt Emirates Group DHL Aramex Dubai Logistics City Hamdi Osman Graham Burne Saadi Al Rais Jinendra Sancheti Nakheel FedEx RHS Logistics SCLG MEMBERSHIP TNT Express For details log on to: www.sclgme.org CORPORATE MEMBERSHIP Membership is open to all organisations. Corporate members shall/may nominate 4 representatives. All nominated members shall be allowed to vote at the Annual General Meeting (AGM), and at any Extraordinary General Meetings. Board of Directors and Executive Committee members shall decide the annual fees for membership. SCLG? Access to Educational Training and Seminars at concessional rates. A Membership Certificate - to distinguish you/ your company as professionally focused enterprise committed to the cause of Supply Chain and Logistics INDIVIDUAL MEMBERSHIP Open to any individual from any part of the world. The annual subscription shall be set from time to time as deemed necessary by the Board of Directors and Executive Committee members. • STUDENT MEMBERSHIP Open to students, full-time education only. Student membership shall not convey any voting rights to the individual. The annual subscription shall be set from time to time as deemed necessary by the Board of Directors/ Executive committee members. MORE REASONS - WHY BELONG TO • • • Access to networking evening(s) at rebated rates Access to 'member only' section of SCLG coming soon Rebates on Subscription of Membership to international partnering body of SCLG Membership Card (discount offers being discussed at leading retailers /service providers) and many more to come............ Visit our website (www.sclgme.org) for more details. Wish to volunteer on various Sub Committee to support us in managing and fostering Supply Chain & Logistics Community? Contact - Kanchan Vora at [email protected] Supply Chain & Logistics Group (SCLG) of the Middle East is a non-profit organisation, working under the umbrella of Dubai Chamber of Commerce& Industry to promote the cause of supply chain and logistics industry. This group brings an opportunity for personal and professional developments by offering networking prospects among like-minded professionals and corporations on a global basis. The SCLG was founded with the help of senior management professionals representing a wide spectrum of industries on Supply Chain. This group shall strive to bring the best of education, seminars and interaction through partnership/ alliances with a variety of similar bodies across the globe. The Link is the official magazine of the SCLG addressing the needs of the Logistics and Supply Chain Professionals/Management in the region. It presents news, views, developments and information to its readers drawn from the industry experts. The magazine aspires to serve as a benchmark guide to the industry, the first of its kind in the region. The articles offer valuable insight and information for today's Supply Chain executives. These articles and news features cover innovative supply chain practices, emerging technologies, e-commerce, market information from industry leaders and reports on break-through innovative practices. The Supply Chain and Logistics industry is still in the development stage in the region, but activities of SCLG will help build renewed professionalism in the industry. MISSION OF SCLG To provide an accessible, dynamic and professional networking environment that facilitates the achievement of professional, educational and personal goals, by members of SCLG community in an atmosphere that encourages professional development, diversity and innovation in Logistics and Supply Chain Management. OBJECTIVES OF SCLG • To promote the cause of Logistics and Supply Chain industry and raise the overall standards of all industries on end to end supply chain • To protect the interest of member organisations and support government bodies in formulation of policy framework for logistics organisations • To encourage the free exchange of knowledge and skills relating to supply chain and logistics within the members of the organisation • To provide all members an opportunity to network among each other and help facilitate an overall efficient commercial environment • Undertake studies, compute and maintain information, statistical data and official documents relating to various aspects of supply chain and logistics industry for the benefit of all • To establish and maintain contact with similar organisations internationally and provide all members an opportunity to network with like-minded organisations/ members across the globe • To conduct training courses, seminars, conferences and studies relating logistics and supply chain; also establish a library and research centre relating this industry to expand the knowledge base • To establish good relations with other professional groups or societies that are existing or to be established locally or globally • To promote the cause of education in Supply Chain and Logistics among nationals of UAE and thereby contribute to build a cadre of professional and extra competent nationals to take up current and future challenges of Logistics/ Supply Chain industries. The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 10 2/28/08 11:12:58 AM About SCLG 11 THE SUPPLY CHAIN & LOGISTICS GROUP SCLG EXECUTIVE COMMITTEE Soma Sekhar President (TrackIT) SCLG CONSULTATIVE COMMITTEE Dr. Satish Mapara GlobeApex Management Consultants Nigel Moore Sanjay Babur Cosmos Insurance Johnson Soans Logistics Recruitment Extron Electronics Tayssir Awada Dirk Van Doorn FedEx Roy A. Patterson UTi Arup Gupta Sharaf Logistics Michael Stockdale DHL Madhav Kurup Trident Freight Usha Kaul Saraf University of Dubai Dr. Cedwyn Fernandes University of Wollongong Dr. Madrecha Pan Pacific Logistics Dubai World Ravi Kashyap Geoff Wheatley Reinhard Wind Jassim Saif USP Logistics Vice President (Marketing) (Hytech Logistics) Mohseen Al-Awadhi Vice President (Membership) (Dubal) Sebastian Thomas Secretary & Treasurer (Al-Futtaim Retail) Pradeep Melakandy Steinweg Sharaf John Halpin SSI Schaefer LLC (Middle East) Emirates SkyCargo Andreas Dur (Xvise Logistics) Naveen Arun (DAMAC Holding) Melvin Verghese (Transworld Group) Ayman Ismail Ahmed (Famco) Brian Forbes (DHL Express) Stephen Cross (ATMS FZCo) Hemant Barke (Prudence Insurance Brokers) The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 11 2/28/08 11:13:05 AM 12 Retail Beiersdorf’s clear strategy supply chain design and optimization F ounded in 1882 in a residential area of Hamburg, the Beiersdorf Group with its flagship international brand of Nivea, has come a long way. In its 125th year, last year, Beiersdorf had record sales of Euro 5,507 million and importantly it has been reaching out to millions and millions of consumers across all continents. Nivea is the largest body care brand in the world. countries (United Arab Emirates, Saudi Arabia, Kuwait, Oman, Bahrain, Qatar, Yemen, Lebanon, Jordan, Palestine, Syria, Iraq, Egypt, Iran, Pakistan and Afghanistan), having a market potential of 386 million consumers in the region. The Middle East and West Asia regions have a multi-ethnic population. As an international company, Beiersdorf has a clear goal: to be as close as possible to consumers, regardless of which country they live in. Maybe that explains why Beiersdorf is located in a residential area. The basis of Beiersdorf success has been its leading international brands such as Nivea, Eucerin and La Prairie, borne out of over 125 years of experience in research and development. The goal has been to increase market share though qualitative growth. The record earnings, says the CEO Thomas-B.Quaas, demonstrates that Beiersdorf is growing successfully and is even exceeding its own expectations. The company has over 17,000 employees worldwide with over 150 affiliates. A clear strategy Beiersdorf balances world-class product quality and competitive service levels on one side and efficiency on the other side. “We will have one global, process-oriented, and best-in-class supply chain organization which will be managed centrally and tailored to our business model, as well as to our markets and business partners. We will establish an efficient global supply chain network of our production and logistics centers. We will yield economies of scale by standardizing our product assortment and processes.” Successful all over the world Beiersdorf’s consistent consumer orientation is the reason for its global success. Beiersdorf’s name stands for reliable brands with high quality Didier Jordan standards and systematic introduction of strong innovative brands and targeted acquisitions have expanded its markets considerably. The company’s innovative research and development is among the best in the world and that repeatedly sets new standards. Beiersdorf in the Middle East Though the products of Beiersdorf have been available in the Middle Eastern markets for years now, it was only in June 2006 that Beiersdorf Middle East FZCO was located in the Jebel Ali Free Zone, Dubai. The affiliate coordinates 16 Supply Chain locations Beiersdorf’s supply chain locations are in JAFZA and in Agility warehouse. The supply chain mandate is to create efficiencies in the network design and planning by eliminating procedural redundancies. The company has been working on creating a hub in Dubai for the Middle East and West Asia region to boost market proximity and market intelligence; and leverage mastery in outbound dispatch. Beiersdorf ensures direct sourcing from production centres – optimize transportation cost; optimize lead-time and optimize stock holding. It has a direct global sourcing from 11 major sources - Germany (three), Spain (two), Poland, France, Thailand, Colombia, Malaysia and Indonesia. Beiersdorf realigned it supply chain in 2005 and the realignment process continues in 2008 too. In these three years, the company plans to optimize its international supply chain which comprises purchasing, production, distribution and delivery. In addition, the company wants to make its 2006 Competitive Stance Market GP Creams Body Care Face Care Sun Care Men’s Grooming Deodarant Size (msus) 64.9 42.9 91.3 9.8 28.2 113.6 1 Nivea Cream Nivea Soft 34.9 % Jergens Olay Nivea Sun Gillette Nivea Deo 33.1 % 15.8 % 25.5 % 33.9 % 13.4 % 2 Dove 19.9 % Nivea Body 22.4 % L’Oreal 12.2 % Neutrogena 15.3 % Nivea For Men 26.6 % Fa 10.2 % 3 Crème 21 5.4 % Vaseline 9.2 % Neutrogena 11.2 % Coppertone 5.2 % Old Spice 6% Rexona 9.9 % 4 Eva 4.9 % Dove 3.6 % NiveaVisage Neutrogena 10.05 % 2.9 % Super Max 2.1 % Axe 7.3 % Source: AC Nielsen 1-12-2006 The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 12 2/28/08 11:13:20 AM Retail 13 production and logistics network more efficient and adjust capacities in Europe. In this context the company assumes that a reduction of European production and warehouse locations and related job reductions will be necessary. It expects total related one-off costs of about Euro 220 million over the years 2006 to 2008 and estimates it can achieve cost savings of around euro 100 million per year. The production is combined with a bigger scale allowing less complexity on each line. There is better reactivity due to less change over time. The global plant output is huge, allowing – cost scaling effect at plant level. All this adds to better utilization of transportation (time and cost); focused organization allowing innovation with reduced time to market; creation of hub and satellite across the countries to fit customer needs – consolidation of inventories leading to inventory reduction and increased service level; increased forecast accuracy leading to more stable demand transferred to PCs. Beiersdorf has heightened visibility in its supply chain process across manufacturing units; achieving greater forecast accuracy and sufficient lead times. “ We will have one global, process-oriented, and best-inclass supply chain organization which will be managed centrally and tailored to our business model, as well as to our markets and business partners. We will establish an efficient global supply chain network of our production and logistics centers. We will yield economies of scale by standardizing our product assortment and processes ” ME APO project target Demand Planning and Supply Network Planning implementation will increase turn over and profit by – improving responsiveness to market opportunity; reducing stock while maintaining high service level; not consuming benefits in working capital by higher production and transportation costs; scaling down of obsolete stocks; and optimizing planning processes (faster and more accurate). This supply chain process Beiersdorf has been perfecting. Beiersdorf also has collaborative forecast – demand planning. The monthly S&OP meeting between supply chain – marketing and trade marketing – combined knowledge of experts; review of promotional and media plans all help in streamlining the distribution process. . The company has increased effective decision-making and responsiveness to market conditions. It is an integrated company with – proximity with customers and consumers including business partners; full responsibility over the region for sales and profit target; collaborative forecast: all departments involved marketing, sales, finance and supply chain; global decision making tool – APO DP & SNP system – one for all; alert based tool : exception management. The criticality of effective supply chain has been understood and implemented by Beiersdorf and it has been paying good dividends. By Didier Jordan Supply Chain Director, Middle East & West Asia Beiersdorf Middle East FZCO, UAE The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 13 2/28/08 11:13:23 AM 14 Cover Story Air Cargo industry in a tailspin! E veryone is talking about the interesting times in the aviation industry. Actually, these are exciting times and the Middle East region happens to be the place where all the action seems to be taking place. Airlines are on a massive aircraft-buying spree; passenger and cargo movements are going skywards; new technologies are sweeping changes; bottom-lines are in a state of flux and competition is hotting up!! What better times than these for supply chain and logistics professionals. Though the industry has made profits in 2007 (after series of losses since 2000), the Director General and Chief Executive Officer of International Air Transport Association (IATA) Giovanni Bisignani has forecast “difficult times” in 2008. The reasons are not difficult to fathom. Increasing fuel costs are staring in our face. “We expect a bill of US$149 billion next year, which is US$14 billion more than 2007 and 30 per cent of our total costs. The bottom line is that 2008 profits will drop to US$5.0 billion, which is lower than the US$7.8 billion we had anticipated and less than our profits this year. The peak of the business cycle is over and we are still US$190 billion in debt. So we could be headed for a downturn with little cash in the bank to cushion the fall.” Spiralling fuel costs The average cost of a gallon of jet fuel has shot up from 75 cents per gallon in 2001 to $2.81 in 2007. “Two years ago, fuel represented approximately 22 percent of direct operating costs for airlines. Today, for most wide-body planes, fuel now represents a greater percentage of total operating costs.With little decline in prospect this year, IATA estimates the cost of fuel -- even with an average of 45 percent hedged -- will rise from $24 billion to $115 billion.” says Bisignani. The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 14 2/28/08 11:13:44 AM Cover Story 15 now shippers have been opposing on the grounds that it would hamper trade. But after September 11, 2001, the security regime is getting tighter by the day, adding to the cost. There are talks that high cost of screening and delays to screening of belly cargo will cut the differential between ocean and air. It has been reported that in the United States, ground transport is now competitive with air freight up to 1,000 miles. Shippers are increasingly optimizing supply chains to rely on cheaper ground and ocean shipments supplemented by occasional air express shipments. There are many reasons for hike in fuel prices including increased demand from China, India and the emerging markets; insufficient refining capacity in the developed nations and the oil cartel being almost monopolistic. Skyrocketing fuel prices are already impacting air cargo. Carriers have to think of innovative ways of getting better yields and to ensure that shippers do not think of alternative modes of transport. IATA has said that air cargo accounts for only five per cent of world trade volume and over 36 per cent by value (3.25 trillion USD) with annual revenue generation of 50 billion USD. The growth has been positive, but IATA mentions that the air cargo industry is a complex one. “There is significant supply chain cost wasted in complex, paper bound processes within air cargo supply chains failing to deliver the required level of performance to the end customer.” Slowdown in cargo growth “With weakening confidence levels in manufacturing businesses and slower semi-conductor shipments we have “ The peak of the business cycle is over and we are still US$190 billion in debt. So we could be headed for a downturn with little cash in the bank to cushion the fall ” already seen a slowdown in cargo growth from 5.0 per cent in September to 3.6 per cent in October 2007. Though, air cargo is still expanding, the industry has shifted gears to a slower pace of growth. Passenger demand remains strong, but this is a cyclical industry. The next months will be critical to see if the impact of the credit crunch spreads from cargo to corporate and leisure travel,” said Giovanni. Another challenge for the air cargo industry has been the growing security concerns. There have been demands from various quarters that all cargo on passenger planes and cargo aircraft to undergo total inspection which as of Air cargo expanding at 6.1 per cent Despite these fears, world air cargo traffic will expand at an average annual rate of 6.1 per cent for the next two decades, tripling current traffic levels. Asia’s air cargo markets will continue to lead the world air cargo industry in average annual growth rates, with domestic China and intra-Asia markets expanding 10.8 percent and 8.6 percent per year, respectively. As in the past, the more mature North America and Europe markets reflect slower and thus lowerthan-average traffic growth rates, with the exception of those linked to Asia and Southwest Asia. Consequently, the freighter fleet size is forecast to nearly double, from 1,789 in 2005 to 3,563 in 2025. Air freight will grow more rapidly than mail, averaging annual growth of 6.2 percent through 2025. Overall, world air cargo traffic will more than triple during the next 20 years, increasing from 178.1 billion RTKs in 2005 to more than 582.8 RTKs in 2025. Amidst all this, the Middle East carriers saw freight demand improve slightly to 9.0 per cent in October, largely reflecting increased capacity with new route development. In 2006/2007, Emirates SkyCargo recorded growth across its network to carry 1.2 million tonnes of cargo. The division’s revenue $1.5 billion was 21.5 per cent higher than the year before, and contributed 20 per cent to the airline’s transport revenue, one of the highest contributions of any airline in the world with a similar fleet make-up. By R. Chandrakanth The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 15 2/28/08 11:14:03 AM 16 Cover Story Asian markets steer the shipping industry developing nations, and to 7.6 per cent for transition economies. T he growing world economy, led by mounting demand in Asia, spurred an increase in international trade carried by ship to 7.4 billion tons in 2006 -- a jump of 4.3 per cent, UNCTAD́s Review of Maritime Transport 2007 (RMT) reports. Overall, the report says, total world merchandise trade, however carried, recorded robust growth of 8 per cent in 2006, double the rate of increase in global gross domestic product (GDP) for the year. Over one-third of seaborne merchandise was made up of crude oil and petroleum products. Sparked by growth in Asia, in particular in China, total demand for shipping services increased by 5.5 per cent to reach 30,686 billion ton-miles in 2006. World fleet up 1 billion deadweight tons By the beginning of 2007, the total world merchant fleet had expanded by an Cargo channelled through world container ports in 2006 grew by a sharp 13.4 per cent to 440 million twentyfoot-equivalent units (TEUs), the Review reports. Developing countries handled 65 per cent of the world total, up from 62.1 per cent in 2005. Sixtytwo countries -- 25 of them in Asia -- had container traffic above 100,000 TEUs. Of these, 24 countries recorded double-digit growth. In 2006, seven out of the top 10 world container ports were located in Asia. impressive 8.6 per cent over 2006, to 1.04 billion deadweight tons (dwt), the Review notes. That is the first time global capacity has exceeded 1 billion dwt. Developing countries controlled about 31 per cent of the world dwt, developed market economies close to 66 per cent, and economies in transition about 3 per cent. The share of foreignflagged vessels decreased slightly in 2006, for the first time since 1989. The 10 largest open and international ship registries accounted for 53.7 per cent of total world registries. According to the latest data for 2005, global freight costs represented 5.9 per cent of the value of world imports, a jump from 5.1 per cent in 2004. Higher transport costs continued to apply in developing countries and in economies in transition. The cost share of transport came to 7.7 per cent of import value for International rail freight transport also expanded in 2006, the report notes, with totals in China and India growing by 11 per cent and 8 per cent, respectively. The global road transport market is estimated to have grown by 4.5 per cent, while the global freight forwarding and logistics market grew by 13.5 per cent. Maritime security Security continues to be an important issue in the transport of world trade. In a 2007 study, UNCTAD estimated the port-related costs of implementing the International Ship and Port Facility Security Code (ISPS), adopted under the auspices of the International Maritime Organization (IMO), at between US$1.1 billion and US$2.3 billion initially and US$0.4 billion to US$0.9 billion annually thereafter. The ISPS Code entered into force on 1 July 2004. By R. Chandrakanth The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 16 2/26/08 5:58:34 PM DHL Link 23.indd 17 2/28/08 12:44:11 PM 18 Cover Story The long road ahead All ocean and air freight usually first come to Dubai and then it gets transported by road. Trends say an air freight consignment from North America or Europe to Saudi Arabia costs more if it directly goes there. Instead it is more cost effective if it is first imported in Dubai by air and then reexported by land transport,” says Khan. T he recent UAE Freight Transport Report by Business Monitor International (BMI) explains that freight carried growth across all modes, measured in million-tonne-km (mntkm), and is poised to average 6.6 per cent per annum in the 2007-2011 forecast period. According to the report, “Although the current oil price boom is easing, the UAE economy is expected to grow by an average of 5.8 per cent per annum over the next five years, providing an important level of support for the freight business.” By transport modes, BMI predicts the fastest growing sector in the 2007-2011 forecast period to be air, with an annual average of 11.7 per cent growth in freight carried, followed by sea freight with 7.2 per cent and pipeline throughput (6.5 per cent) and road haulage (6.3 per cent), just ahead of GDP. BMI believes the UAE freight sector will expand rapidly and will achieve average annual growth of 6.3 per cent versus 5.8 per cent for overall GDP. Experts opine although the land cargo sector will continue to face stiff competition from ocean and air but its throughput will not be affected. Mazhar Ayub Khan, Head of Logistics International, TCS Express Worldwide, clarifies the point. “With the kind of integration taking place in the freight forwarding industry, land transport, in my opinion, is the future especially in the Middle East region.” Dubai is already one of the largest importing destinations in the region and is gradually emerging as a global logistics hub. There is a huge consumer market in the GCC, South Asia and Middle Eastern region and manufacturers, suppliers and exporters prefer to keep their stocks close to their consumers. Transportation of goods from Dubai by land is definitely more cost effective than any other modes. With the completion of Dubai Logistics City more international cargo is expected to arrive here so it is very likely that land cargo sector will experience a boom. “Dubai is well connected with the consumer markets in the GCC countries. Clayton Delplanque, Business Sector Manager, Auto Units, Al Futtaim Logistics agrees with Khan. “The main concern for the service providers is to enable the consignments to reach the market fast. As a logistics practitioner we do not depend on any particular mode. We give equal importance to all modes of transportation. For instance, consignments of our client Al Futtaim Motors often come by sea freight to Dubai and from here get distributed by road to different parts of the region. Today’s logistics industry is lot more integrated than it was before.” Khan also discusses the issue of competition from a different perspective. “In today’s transportation industry conventional competition is no longer present. It is the age of developing niche market. The customers are more interested in bottom line- lower cost, lesser transit time and faster delivery.” Customs Clearance In the UAE, stringent but effective customs procedures are in place for freight forwarders. “For the security reasons strict customs procedures are always welcome. It differentiates serious players from the masses,” says Delplanque. Customs rules in the UAE are consistently improved and updated in line with regional and international laws, legislations and agreements. “The rules and regulations in Dubai match any international standard. Compare to other GCC countries here forwarders can experience faster clearance. And most importantly the atmosphere is quite customer friendly,” points out Khan. Mazhar Ayub Khan Head of Logistics International, TCS Express Worldwide To ease the overall process and enhance its operational efficiency Dubai customs has The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 18 2/26/08 5:58:57 PM Cover Story 19 signed a memorandum of understanding with key supply chain partners. This initiative is based on activating electronic commerce principles to achieve paperless trading. It allows importers and exporters to electronically perform 51 customs transactions without physically visiting the customs centre. Is the market too crowded? With more than 2000 freight forwarders operating in this market often people think the market is saturated. “The business opportunities in this market are set to grow manifold. Statistics show the dynamics of Dubai ports have grown ten times in the recent years and with the opening of Dubai Logistics City the service of more handlers will be required. Besides, since the business model of Dubai is trade based so opportunities for freight forwarders will never fade away. Many well established companies here just take care of their production, marketing and finance. All other practical things are actually performed by freight forwarders. This trend is set to continue,” says Khan. However, Delplanque thinks though the market is crowded it is so only at the specific level. Numerous small players are operating in the market and they cannot match the service standards and network of the eminent players. Security and increased operational cost Both Khan and Delplanque agree that increased security measures have led to the rise in operational cost in the recent years. “But since this region is attracting more business the hike in operational cost gets automatically balanced,” difficult to get qualified heavy vehicle drivers in the market. “In the UAE land transport authority has recently changed the licences standard. Previously we used to get drivers from other parts of the GCC region. And GCC licenses used to be considered valid here. But today it is no longer accepted. The drivers need to get their licenses again and the whole procedure takes about 40 days.” Clayton Delplanque Business Sector Manager, Auto Units, Al Futtaim Logistics says Delplanque. “Security has always been an issue with freight forwarders. Previously everyone used to transfer that responsibility to someone else. But now the rule says if a person is a freight forwarder or a beneficiary of the deal then he/ she has to bear the responsibility. Cost is a big challenge for every operator. Sometimes the hike is shared and sometimes it is passed on,” explains Khan. He also raises the important issue of drop in dollars and explains how it affects the whole industry. “In the US the plunge in the rate of dollars affects the shipping industry. Due to that they pass on the cost to the freight forwarders. Now in every quotation there is the provision for Currency Adjustment Factor (CAF). This charge was originally developed due to costs that carriers incur from constantly changing exchange rates between the US dollar and other foreign currencies.” Challenges in the land cargo sector According to Delplanque it is very He also thinks the road infrastructure needs to improve to accommodate the increased volume of traffic. “The infrastructure is sometimes not enough to handle the growth. Severe traffic congestion on the roads of Dubai hampers the movement of land cargo and that affects business.” With the mushrooming of numerous freight forwarders in the country, often the entire industry gets a bad name when the forwarders cannot deliver. “Small time operators often have a very confined notion of freight forwarding. They are not well acquainted with financial legalities, liabilities and run into troubles,” says Khan. He also points out that maintaining own fleet is not very cost effective in this region. So according to him many companies in this industry outsource this service to other transportation companies. “Many truckers who come from Egypt, Jordan and Syria unload their trucks in Dubai and while going back often carry goods from here. They offer rate which is lower than the existing market rate. It makes sense to have a dedicated fleet only when the forwarder has committed cargo arriving.” Khan and Delplanque both acknowledge the fact that logistics and supply chain industry is poised to experience unprecedented growth in the region. Because of the strategic location and sound infrastructure the volume of road transport is set to grow in Dubai. The opening of Al Maktoum International Airport and Dubai Logistics City will add an edge to all modes of cargo operation. “For a manufacturer logistics services are very crucial because cost of product is directly linked to the cost of transportation. If the transportation and logistics facilities are not efficient it directly hits the bottom line,” concludes Khan. By Chiranti Sengupta The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 19 2/26/08 5:59:02 PM 20 Warehousing Amana Fuelling industrial construction boom High tech logistics platform for Vos logistics at Masaieed Industrial City I ndia has the peacock, New Zealand the kiwi and Britain the robin. The UAE has cranes. We are not talking about the light-feathered two-legged creatures that flutter their wings by the waterside but the monstrous tangles of steel that have become such a familiar sight along Dubai’s roads, bridges and even the forlorn deserts that the status of national bird really seems befitting. According to unofficial estimates, about 25 per cent of the world’s construction cranes are in Dubai. On the eve of George W. Bush’s recent visit to the UAE, HH Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, said in a Wall Street Journal article that Dubai’s recent construction boom really justifies the crane’s status as a national bird. The tongue-in-cheek comment, however, points to something more serious: the UAE and by proximity the other Gulf states are going through an unprecedented era of infrastructure growth and the real estate sector is one of the most flourishing industries in the region, with multibillion dollar projects being announced every week. Riding on this boom in construction activity and with a focus on the industrial and commercial sector is Amana Contracting and Steel Buildings. The company, established in 1993, combines local knowledge with regional reach. This is accomplished with its decentralized structure allowing each of its local offices to operate independently with capabilities to market, design, procure and construct projects on a full design-build basis. With logistics and supply chain industry playing a critical part in Amana’s portfolio, Riad Bsaibes, Chief Operating Officer, Amana Contracting and Buildings says that about 30 per cent of the whole operations constitutes projects in logistics sector. Logistics terminal in Mesaieed, Qatar Vos Logistics of Netherlands awarded a contract to Amana in December, 2006 to design and build a logistics terminal in Qatar. “Vos Logistics, a leading logistics service provider to the petrochemical industry was awarded with the contract by Qatofin, a joint venture between Qatar Petrochemical Company, Total Petrochemicals of France and Qatar Petroleum to construct and operate a leading-edge logistics platform. Amana is currently constructing the platform to facilitate storage and handling of Qatofin’s Linear Low Density Polyethylene (LLDPE) granules,” says Bsaibes. After winning the contract Amana commenced construction on the site in February 2007. Due for completion in October, 2008, the terminal complex will comprise four buildings featuring a 60,000 square meter of covered warehouses, 14,500 cubic meter of silo storage, two fully automatic and mobile packaging lines, 20 loading docks and container storage and transshipment with a capacity of 1000 TEU. The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 20 2/26/08 5:59:09 PM Warehousing Notable logistics projects of Amana Logistics facilities for Agility suppliers. The facility has been designed with Amana has worked with Agility for its projects stringent European specifications. across the region. It first worked with Agility in Doha in 2005. After that it worked with Ajman Free Zones them for projects in Dubai Investment Park Amana is currently working on a project for and Kuwait and currently it is working on a Ajman Free Zones. It is constructing 90,000 project at Jebel Ali. square meter of warehousing facility for them. Warehouses at Dubai Maritime City Logistics facility for General Motors/ Danzas Completed in two phases on 377,700 square at JAFZA meters of reclaimed land at Port Rashid the With a large clear span, this pre-engineered, construction required over 5000 tons of steel. design-built facility was created for the full utilization of the storage space and racking Light Industrial Units at JAFZA requirements for the rapid movements of This development is composed of various goods. rental units used for light industries and general warehousing for companies in the free Cold Store Complex for Gulf Warehousing zones. Company This 25,000 square meter distribution facility Spares Center for Airbus at Dubai Airport is designed to contain over 43000 pallet Free Zones (DAFZA) positions. The complex is a high-bay facility The spares centre is used by Airbus to stock parts with an internal very narrow aisle racking made by the company and major equipment (VNA) system. “So far about 40 per cent of the project is complete and more than 2000 tons of steel were used for the construction,” points out Bsaibes. Construction boom in the UAE The United Arab Emirates (UAE) construction industry reported an estimated growth rate of 8.01per cent year-on-year (y-o-y) in 2006. The industry, which is the third-largest sector of the economy, after oil and trade, comprises about 6,000 companies. As evident from the large number of new and ongoing large scale projects, the country has the highest per capita expenditure on construction in the world. According to the UAE Infrastructure Report Q3, 07, the construction industry is predicted to register an average growth of 7.04 per cent during 2007-2010. According to Bsaibes, in spite of the boom in the UAE there is no categorization in the construction sector in terms of quality so it is really difficult to establish a name in the market. It is the reputation which in the long run sets a company apart from its competitors. Factors like quality, cost, and on-time completion of a project determine credibility of a company in the market. “The growth in the residential construction sector is dependent on several extraneous factors such as mortgage, bank loans 21 linked to leadership and governmental policies. The Middle East has a geographical advantage since it is located between Asia and Europe. In addition to that infrastructure facility is first-rate and cost of power is lot cheaper than most European countries. In my opinion the industrial construction is perhaps the most robust sector and is poised for trajectory growth,” he adds. Competitive edge With 11 offices in 7 countries, Amana is in an advantageous position to offer its employees better growth prospects in this sector. “Sourcing right-skilled persons is definitely a challenge but retaining them is a bigger challenge. Since we have operations in the entire region we definitely enjoy an edge with regard to employees- we can offer them better opportunities which no other contractor in the UAE can,” says Bsaibes. Additionally, when a client plans a regional expansion Amana with its strong regional presence is better equipped to offer turnkey solutions across the region. Amana has grown considerably in the last few years. “We have experienced very quick growth in the last three years. Last year we opened three offices. In 2008 our primary agenda is to institutionalize the Retail Distribution centre for Agility Logistics at Dubai Investment Park and rate of interest. If these factors are favorable this sector experiences growth. However, the growth in the industrial and commercial construction sector is directly company and build a framework in the organization to consolidate our position so that again in 2009 we can embark on expansion,” explains Bsaibes. The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 21 2/26/08 5:59:13 PM 22 Market Watch Jafza to build free zone in Senegal Dubai World Group’s Jafza subsidiary has signed an $800 million deal to build and run a special economic zone in Senegal. The Chairman of Dubai World, Sultan Ahmed bin Sulayem said the first phase construction on 650 hectares would begin this year. The project will be next to the proposed international airport 45 kilometres from Dakar. The project is expected to go operational in 2010 and hopes to attract nearly 1,000 companies, having the potential of creating 30,000 direct jobs. “This will be an example to many African countries that when free trade operates with government support, you will see that businesses will come,” bin Sulayem said. Senegal hopes its strategic location between markets in the Americas, Europe and Asia will entice businesses to the low-tax and employed a tenth of its population. area. The Senegalese government has reserved a total of 10,000 hectares for the expansion of the zone, with the possibility of constructing a power station and refinery to tackle shortage of electricity capacity. The special economic zone and other infrastructure projects including a new airport and port, are part of the government’s accelerated growth strategy to help lift economic expansion above seven per cent per annum. The economy currently relies on foreign aid, tourism, fishing, exports of phosphates and peanuts. Salma Hareb, CEO of Jafza and Economic Zones World, said “We see Senegal as our West African gateway.. and we believe this project is going to be successful.” She said the Jebel Ali free zone in Dubai now provided 26 per cent of the Emirate’s economy Senegal’s economic and political stability was important for investors and many of Jafza’s existing customers had identified the West African country as an area where they wished to do business. The exemption on value added tax (VAT) and customs taxes and the reduced rate of income tax on exports had created concerns at the International Monetary Fund (IMF) that the zone could reduce government tax receipts. DP World, another affiliate of the Dubai World Group, has already signed a 25year concession to develop and operate Senegal’s main container port and invest more than $600 million in future port expansion. This involves plans to build a new shipping terminal near Dakar. Russian Railways wins $800mn Saudi deal Sea port of Jeddah, as well as a 115-kilometre link between the industrial city of Jubail and Dammam, the oil hub on the Gulf coast. Four groups of Saudi and international firms have been submitted tenders for it in November, and the Saudi Rail Organisation (SRO) is to announce the winning bid. Russian Railways has bagged a $800 million tender from Saudi Arabia to build a 520kilometre railway line from Riyadh airport to a key mainline junction on its giant North-South railway project. The rail line will connect Riyadh’s King Khalid Airport with the Al-Zabira junction on Saudi Arabia’s North-South railway project, which is being built to move minerals from the interior to an industrial complex to be built on the Gulf coast. The North-South railway project is among the several planned to expand the kingdom’s rail network. The Saudi Landbridge and MeccaMedina Rail Link (MMRL) projects are expected to transform the existing rail network into a world-class freight and passenger system. Saudi Landbridge includes a 950-kilometre line between capital Riyadh and the Red MMRL will involve the construction of new lines linking the Islamic holy cities of Mecca and Medina with Jeddah, the gateway to Mecca for Haj pilgrims. Six international groups were expected to submit proposals for the project. The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 22 2/26/08 5:59:17 PM Market Watch 23 Empost on an Asian acquisition drive Emirates Post (Empost) is looking out for Asian acquisitions and has plans to invest 1.5 billion dirhams ($408.4 million) for that and also to start a banking joint venture with Noor Islamic Bank (NIB). The investment will be between 1 billion and 1.5 billion dirhams over five years on acquisitions in Asian companies in postal Link 23.indd 23 DP World throughput increases 18 per cent and financial services. The acquisitions are to be in Malaysia, Singapore, Thailand and Indonesia. Dubai-based marine terminal operator DP World handled over 43.3 million TEU (twentyfoot equivalent container units) in 2007 across its portfolio of 42 terminals last year - an increase of 18 per cent. The growth from all the three reporting regions, DP World has said, was strong with the Middle East, Europe and Africa region registering 19 per cent, the Asia Pacific and Indian sub-continent region 17 per cent, and the Americas and Australia region 18 per cent. Empost and NIB will create a company with a capital of up to 500 million dirhams that would provide banking services to low-income people, including labourers and domestic helpers. Terminals in the UAE increased throughput by 19 per cent to 11m TEU, with the two Dubai ports of Jebel Ali and Port Rashid combined growing 20 per cent to reach 10.7m TEU. Jebel Ali alone grew over 25 per cent, reaching 9.9m TEU. This was in large part due to a raft of new vessel calls, as well as the opening of a new second terminal. In 2007 DP had four major new wins. In Europe, the company bagged major contracts to develop two new terminals in Rotterdam and the London Gateway. In Africa, it won the concession to operate the port at Dakar, Senegal, and to build a new terminal there, and acquired Sokhna Port in Egypt. 2/28/08 1:23:55 PM 24 Market Watch GAC extends sponsorship deal with golfer Richard Sterne Global logistics, shipping and marine services company GAC has extended its sponsorship of South African professional Richard Sterne to 2010, following the successful collaboration which started in 2004. The latest sponsorship deal was sealed yesterday between Bill Hill, GAC Group Vice President, Logistics Services and Neil Fairbrother, Sports Director of International Sports Management Limited, at the GAC Corporate Headquarters in Jebel Ali, Dubai. Currently 29th in the Golf world rankings, Sterne started 2008 in winning style by capturing the Johannesburg Open in his native South Africa in January. His third European Tour title followed his best season in 2007, during which he won The Celtic Manor Wales Open and claimed six other top ten finishes including coming in second at the 2007 European Tour, Johnny Walker Classic. “Branding via sports sponsorship is increasingly important to global businesses. Our continued support in Richard Sterne will enable us to further widen our global brand visibility and relevance to customers, partners, suppliers and employees,” commented Hill. “ISM is proud to be associated with a company like GAC and we look forward to expanding this relationship in the future into other sports” Fairbrother added. As GAC’s brand ambassador, Sterne will attend and support GAC corporate golf events as well as appearing in worldwide tournaments under the GAC banner, including the upcoming US Masters in Augusta. GAC and GETMA International in global agency network tie-up GAC Shipping global agency network has formed an alliance agreement with leading ship agent GETMA International in providing ship agency and logistics services to all types of general, bulk, Ro-Ro, tramp cargo ships and tankers, expanding its network in West Africa. Container lines and markets are excluded from the agreement. The GAC-GETMA alliance covers all Francophone countries in West Africa including: Benin, Cameroon, Congo, Rep. of Congo, Democratic Republic of Congo ( Ex Zaire ), Gabon, Guinea (Conakry), Ivory Coast, Senegal, Togo, and Mauritania. Founded in 1978, GETMA International is part of the NECOTRANS GROUP and is present in 23 West African countries through its subsidiaries. Lars Heisselberg, GAC Group Vice President, Shipping Services, said “GAC and GETMA International have been working together for the past ten years so this alliance is a natural development. Our closer ties and GETMA’s extensive local knowledge will enable us to develop new offshore support services in the rapidly growing West African market and provide a strong complement to GAC’s existing operations in the Continent.” Jean-François Ollivier, General Manager of GETMA International, said “GAC’s global presence will enhance GETMA’s market coverage and international profile. " The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 24 2/26/08 5:59:25 PM Market Watch 25 Bahrain Air takes flight Bahrain Air, the country’s second national carrier, made its maiden flight to Dubai, on February 4. Bahrain Air will offer business and economy seats between Manama and Dubai twice a day using Airbus A320 planes. Bahrain Air will compete with government-owned Gulf Air. The premium low-priced LPC carrier plans to make 140 flights a week to 13 cities in the Middle East and Africa, according to the Bahrain Air Managing Director Ibrahim al-Hamer. Besides Dubai, some of the routes announced are Alexandria, Amman, Doha, and Mashad. Bahrain Air operates twice daily flights between Bahrain and Dubai through its 0910 and 2135 respectively. The carrier operates the A320 aircraft with a two-class configuration on this route. winter schedule between February and March this year. Flight 2B102 departs from Dubai at 0955 and arrive in Bahrain 1015, while flight 2B110 departs Dubai at 2220 and arrive in Bahrain at 2240. Flights 2B101 and 2B109 depart Bahrain at 0700 and 1925 and arrive in Dubai at Al Hamer said Bahrain Air aims to set new standards in its class while tapping the huge base of passengers for AGCC and African destinations. “Bahrain Air will offer on all its routes a two-class service (Business and Economy) and will offer its premium class passengers, complementary snacks and refreshments as well as invitation to Business Class Lounges at all departure airports. All Bahrain Air premium class passengers will be automatically enrolled in the airlines’ Frequent Flyer Programme.” Airbus tests GTL fuel The flight’s goal was to see how the aircraft operated on GTL. Engine behaviour was observed as it was shut down and re-started in flight. Emissions will be compared with those of kerosene and the team will be using the results to predict the environmental benefits and define the next steps. Test aircraft A380 MSN004 has flown between Filton and Toulouse with one engine powered by alternative fuel. The test, part of Airbus’ research programme into alternative fuels, was run in collaboration with Shell International Petroleum and Rolls Royce. The project is particularly important for environmental and economical reasons. Crude oil derived products are increasingly in demand and prices are rocketing. If it is possible to find a suitable alternative fuel, this could stabilise the market for the benefit of all. Secondly, some alternative fuels could be beneficial for the environment. It is Airbus’ goal as a key stakeholder to support evolution towards a carbon neutral aviation industry. Alternative fuels may contribute to reducing our carbon footprint. The tests were run on an A380 as it is the most modern aircraft flying today, however the fuel could equally have been tested on any Airbus aircraft. The alternative fuel used on the test flight was gas to liquid (GTL), which looks like kerosene, but is clear coloured. It is a natural gas, which has been cleaned and has undergone the Fischer-Tropsch process - the conversion of synthesis gas to liquid fuel. In researching alternative fuel, Airbus is looking for a drop-in product, meaning that it could be used in aircraft currently in service. It would equal or better the aircraft performance while offering environmental benefits. Airbus is hoping to establish what the best alternative fuel options are and how they will benefit the environment. As synthetic fuels are reported to have similar characteristics, whatever their original feedstock, this test was an excellent pre-cursor to research into biomass to liquid (BTL) fuels, should a suitable supply become available. In order for an alternative fuel to qualify for commercial aviation, review and approval by the international Fuel Standards is a pre-requisite. Airbus is committed to this goal, and it is hoped that this will be obtained for GTL by 2013. The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 25 2/26/08 5:59:35 PM The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 26 2/26/08 5:59:38 PM Market Watch 27 Saudia to implement fuel management systems out of 247 airlines, includes more than 130 aircraft servicing 42 countries using 92 fueling locations and three bulk fuel inventory locations in New York City, Houston and Austin, TX. With FuelQuest’s FMS, Saudia will have detailed insight into fuel usage trends and inventory positions, enabling the airline to reduce direct fueling costs and maximize the effectiveness of its hedging programme. Saudi Arabian Airlines (Saudia) is implementing FuelQuest’s Fuel Management System(FMS) and ZyTax Tax Determination Engine, to optimize its fuel procurement and management processes. Saudia is reorganising its operations into nine independent subsidiaries. FuelQuest, Inc., the leading on-demand software and services company for the downstream energy industry, is deploying the solution in conjunction with the SAP® ERP application. ‘FuelQuest’s automated solution will streamline processes tied to fuel procurement, inventory replenishment, transaction processing and financial reconciliation, enabling us to reduce our fuel-related operating costs,’ said Khalid Almolhem, Director General, Saudi Arabian Airlines. Saudia’s fleet, ranked among the top 20 Saudia selected FuelQuest’s FMS to centralize and automate its fuel management processes in the following areas: inventory, order and price management; delivery and invoice reconciliation; tax determination; and freight management. ‘FMS will allow Saudia to quickly adapt to market changes and implement a proactive sourcing and supply strategy to combat price volatility,’ said Jim Kiser, senior vice president of FuelQuest. ‘We are pleased to work closely with Saudia and SAP to deliver this comprehensive aviation solution.’ Vos Logistics and Bertschi join forces Swift gets WOFE in dry bulk sector status in China leading in the intermodal chemical transport. Both organizations will concentrate on their core competences. For Vos Logistics focus is on road transport, handling, packaging and storage of dry bulk goods through its terminals where as Bertschi focuses on the intermodal dry bulk transport. Vos Logistics and Bertschi have signed a collaboration agreement for the European distribution of dry bulk goods. With this agreement both companies want to offer their customers an integrated service package on pan-European scale. Vos Logistics is a European market leader in dry bulk transport. Bertschi is During the upcoming weeks the intermodal dry bulk activities of Vos Logistics will be integrated in the Bertschi organization. This horizontal cooperation will add value to the future service supply to the chemical industry for both companies. Vos Logistics has about 5,000 employees at 45 offices within Europe; its head office is located in Oss, the Netherlands. Swift Global Logistics has received from the Chinese government the Wholly Owned Foreign Enterprise (WOFE) status, which allows foreign companies to operate in China without a local partner. The other logistics companies which have been given this status include UPS, Gulf Agency Company and Maersk Logistics. “This is another important development in our mission to provide innovative logistics solutions to a wider spectrum of clients throughout the world,” said Issa Baluch, Chief Executive Officer of the Swift Group. With this new status, Swift Global Logistics will operate as a wholly owned entity in China, providing a diverse range of sea freight, airfreight and 3PL services in the local market. In particular, the company is planning to market its SAM (Sea Air Model) service, which combines sea-air transportation from cities such as Beijing, Hong Kong, etc. The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 27 2/26/08 5:59:44 PM Link 23.indd 28 2/26/08 5:59:47 PM Market Watch 29 Jafza Int’l signs MoU on development ArcelorMittal bags of Dh29.5bn Rakisa Economic City Egypt contract station, agricultural industries and services, an entertainment area, mining centre, business centre, knowledge area, and residential complexes. Jafza International, the global free zone operations arm of Economic Zones World has signed a MoU with Saudi Arabia’s Rakisa Holding for the development and management of Rakisa Economic City in Hail, Saudi Arabia. The Rakisa Economic City, a SR 30 billion (about AED 29.5 billion) project, spread over 15,600 hectares, is envisaged to be the second largest economic zone in the Kingdom of Saudi Arabia, incorporating an international airport, dry port, railway According to Salma Hareb, CEO Jafza and Economic Zones World “Our strength is in studying, evaluating, validating, assessing, developing, managing, operating and investing in special economic zones and logistics parks. The MoU on the Rakisa Economic City is one more step towards our aim of setting up a global network of economic zones.” Rakisa Economic City will eventually house more than 300,000 people and provide 55,000 jobs in seven phases of development over the next 40 years. Under the agreement, both parties will explore investment opportunities to jointly develop Rakisa Economic City. The Chief Executive Officer of Agility, Middle East and Africa, Elias Monem said “This acquisition comes at an important time for Agility, when it is rapidly expanding its network across the globe. More than 70 per cent of international container cargo comes from or is going to ArcelorMittal will pay 340 million Egyptian pounds ($61.2 million) for the licence. the central and the eastern regions of Africa and the acquisition has created a gateway for us to service this rapidly developing market.” The project will cost between $800 million to $1 billion and would take four years for commercial production, according to Sudha Maheshwari. As per the licence, the production capacity of the factories will be1.6 million tonnes per year of DRI steel and 1.4 million tonnes of billet steel. Nairobi-based Starfreight is into procurement and clearing of goods and machinery into Africa, in addition to warehousing and project forwarding, crossborder documentation and transportation, airfreight and customers examination. Alongside ArcelorMittal, Kuwait’s Al-Kharafi group also won a licence for pelletising factories for 105 million Egyptian pounds, and Saudi Arabia’s Al-Tuwairqi Group won a similar licence for 64 million pounds. Starfreight has secured a number of contracts from large Kenyan manufacturers in sectors such as automotive, pharmaceutical, plastic products, glass, paper and agricultural equipment. It also provides logistics services to international brands such as Hewlett Packard, Mitsubishi, and Nestlé. These projects would benefit the Egyptian housing and real estate companies and also steel producers, who currently import intermediate products. Egypt used to import two million tonnes of steel annually less than 10 years ago has now become an exporter of 900,000 tonnes in 2006. Agility acquires Starfreight Logistics Kuwait-based logistics company, Agility has acquired Starfreight Logistics Limited, a Kenyan company, thus expanding its presence in the African logistics market. Agility had recently taken over Medorient Algeria. ArcelorMittal, the world’s largest steelmaker, has decided to invest up to $1 billion in Egypt after winning a licence to build direct reduced iron (DRI) and billet steel factories. ArcelorMittal edged out India’s Essar Global and UAE’s Al-Ghurair in the licence bid. The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 29 2/26/08 5:59:52 PM 30 Market Watch A2 hypersonic aircraft being Developed Reaction Engines, a British aircraft manufacturer, said it has developed a passenger aircraft that could fly from the Middle East to the US West coast in less than four hours. Egypt has massive investment plans in its transportation system to cope with the demand, spurred by increasing economic growth. The plans are to invest about 90 billion Egyptian pounds ($16.3 billion) over the next five years in transportation. The company said its A2 hypersonic aircraft would travel at Mach 5, almost 6,400 kilometres per hour (kph), and twice the speed of a Concorde. It said the aircraft, which has a development name of Lapcat (Long-Term Advanced Propulsion Concepts and Technologies), could be operational within 25 years. It measures 143 metres long, roughly twice the size of today’s biggest jumbo jets, and runs on liquid hydrogen Scimitar engines. It will be capable of carrying up to 300 passengers and will be commercially viable if tickets are sold at the equivalent of business class prices, Reaction Engines said. Similar technology was used by the US to develop the ‘bumper rocket’, which was assembled from a captured German V- Egypt plans massive investments in transportation The country is envisaging about 50 billion pounds of investment in the port sector, coming from private players in the coming five years. The investment in ports would come from companies from 2 rocket in 1949. The A2’s creation was financed by the European Space Agency (ESA), which encourages companies to continually develop air travel by using aerospace technology. Aramex completes second phase of construction solidifying our position as a leader within the region’s growing logistics industry,” said Iyad Kamal, Chief Logistics Officer of Aramex. “As a central commercial hub, the facility will also link to other Aramex logistics centres in Jeddah, Riyadh, Dammam, Aqaba, Amman, Beirut, Cairo and Bahrain.” Aramex has finished the second phase of construction for its flagship logistics facility in Jebel Ali Free Zone (JAFZA). The warehousing complex measuring 25,000m2 will provide Aramex with a centralised hub for its key markets throughout the Middle East. “The second phase of development for our Jebel Ali Free Zone facility has created an additional 10,000m2 of storage capacity, Boasting high-level features including a temperature-controlled storage area and an inventory management system with real time visibility of inventory levels, the new facility will significantly improve the services available to customers. Aramex helps its clients gain a competitive edge through efficient and transparent supply chain solutions powered by technologies that can be customized to the needs of specific industries. China, the UAE and Denmark. Dubai port operator DP World has already acquired a 90 per cent stake in Egyptian Container Handling Company, located near the mouth of the Suez Canal, for $670 million. Also the plan is to invest nearly 10 billion pounds in the railways. Egypt’s economy has been growing quite rapidly and in 2007 it grew at 7.1 per cent. According to the Minister for Transport, the current fiscal year investment in transportation will reach five billion pounds, a six-fold increase from 2006. He said that in the next five years almost a third of investments in roads would come from the government and the remaining from the private sector. The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 30 2/26/08 5:59:56 PM Market Watch 31 Kuwait plans “city of silk” a canal system and aims to boost Kuwait’s efforts to become a regional trade and financial centre. At the centre of the commerce city, a 1,001 metre tower will be built. Its height is a reference to the classic work of Arabic literature, The One Thousand and One Nights. Kuwait has planned to build a major new city to be called the “city of silk” inspired by the Silk Route and hopes that it will become a global trade and tourist attraction. The $77 billion “city of silk” aims to revive the ancient trade route. Eric Kuhne, Managing Director of Eric R. Kuhne and Associates that provided designs, said the city, located in Subbiya on the northernmost tip of Kuwait Bay, will be home to 750,000 people when Link 23.indd 31 completed in 2030. The city will be linked to Kuwait by a 26-kilometre causeway, thus reducing the current road distance of some 120 kilometres. Two artificial islands will be built alongside the causeway. The city will be built on an area of 200 square kilometres and will have four major zones - a city of commerce, a city of leisure and recreation, a city of ecology and a city of diplomacy and education. The commerce city will sit in the middle of Three blades that will be built near the top of the tower, will carry a mosque, a church and a synagogue to signify the unity of the three monotheistic religions, he said. The leisure city will house an internationalstandard Olympic village while the education and diplomacy city will house several universities and is also expected to be home to a number of foreign missions. The project has been approved in principle and that work is under way to secure passage of the necessary legislation for the city to be treated as a free trade zone. 2/28/08 1:27:17 PM 32 Logistics Health of Halal Logistics W ith nearly 1.8 billion Muslims spread across the world, the Halal food industry is enjoying a surge. But one question always stays put in mind- “Is the food truly halal?” Since the bulk of the food consumed in the UAE is imported and from nonMuslim countries people need assurance from the authorities on the integrity and quality of the products sold in the retail outlets. “Dubai Municipality is very proactive in ensuring that all meat products that are sold in the market are strictly of Halal origin. It lays strict guidelines with regard to halal slaughter and packaging of meat. These guidelines are followed by abattoirs in the foreign countries as well if they want to export meat to this country,” says Bashir Hassan Yousif, Food Safety Specialist, Public Health- Food Control Section, Dubai Municipality in an interview with The Link Magazine. The Emirates Authority for Standardization and Metrology (ESMA) has set certain standards for halal food in the UAE which are now under review by concerned authorities. Due to the importance of halal food trade in the international market guidelines are also laid down by the Codex Alimentarius Commission which develops food standards, guidelines “ Dubai Municipality is extremely cautious of the fact that each package that arrives in Dubai carries the seal of the exporting company and the abattoir. ” and related texts such as codes of practice under the joint FAO/WHO Food Standard Programme. Conditions of Halal Food Halal food is the only food allowed to be consumed under the Sharia. It should not contain any ingredient that is prohibited according to Islamic law. “In the business of Halal food two things must be kept in mind- the food should be prepared, manufactured, transported and stored under conditions which are allowed according to Sharia and prohibited food should not be mixed with Halal food,” points The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 32 2/26/08 6:00:09 PM Logistics 33 out Saleh Abdullah Lootah, CEO, Al Islami Foods. Lootah makes it clear that Al Islami takes utmost care to ensure that the ‘halal integrity’ of the food products is maintained all through the supply chain- right from slaughter to the transportation to the retail outlets. “We strictly hand slaughter animals for meat and we do that without stunning. And all the ingredients used in our food products are of halal origin. All our products undergo proper checks and analysis to ascertain that there is absolutely no pork or alcohol contamination,” he explains. The General Secretariat of Municipalities has appointed a committee which visits and certifies abattoirs in the foreign states. In the UAE, the importers can only import from the government approved slaughter houses. “Dubai Municipality is extremely cautious of the fact that each package that arrives in Dubai carries the seal of the exporting company and the abattoir. This is thoroughly inspected at the port of entry. In addition to that, there is provision for further inspection procedures at importers’ warehouses to double-check if the consignments were actually checked at the port of entry,” says Bashir. Both Lootah and Bashir agree that contamination of halal food by non halal products is a cause of concern for everyone in the industry. “Abattoirs in the foreign countries are often not very sensitive about the ethics of halal food and flout rules. Importers are sometimes not sure whether all the ingredients used in the food are strictly of halal origin. We at Al Islami of course spend more money but we never compromise on halal integrity Bashir Hassan Yousif Food Safety Specialist, Dubai Municipality because we understand what this integrity stands for the Muslim community.” “We import meat from several foreign countries including Brazil and Australia. We take control of the whole process and ensure that the integrity is maintained all through the supply chain,” he adds. Bashir points out that Dubai Municipality keeps regular track of the records and history of exporting companies and abattoirs and if breach of rules are detected their products are not allowed to enter the country. “Any kind of contamination with pork can be checked at the Municipality laboratory through a special technique called PCR (Polymerase Chain Reaction). Municipality uses this technique for species identification to ensure that the carcass has no pork and also to ensure that processed meat or ground meat like burgers, sausages, mortadella which are sold in the supermarkets do not contain pork,” Bashir says. Halal Logistics Benefiting from the boom in the global halal industry is the logistics sector. 3PL service providers have in fact coined a new term ‘halal logistics’ which Saleh Abdullah Lootah CEO, Al Islami Foods involves shipping and freight forwarding, warehousing and handling facilities exclusively for halal products. “The basic requirement in halal logistics is segregation of halal and nonhalal food items,” says Lootah. “In the UAE the logistics facilities of halal products are definitely up-to-the-mark but of course there is need to review the process from time to time to identify if there is any loophole. Generally speaking, there is very little chance of contamination since there is no room for food smuggling in this country. Containers usually arrive sealed from manufacturers and at the port of entry everything is thoroughly checked. So the chance of contamination while on transit is negligible,” says Bashir. Market trends highlight that halal food industry has a promising future ahead and so does the halal logistics industry. For 3PL service providers it is an easy journey provided they understand the basics of halal food production. They need to deploy trained personnel who are well acquainted with halal guidelines and are ready to pay heed to religious sensibilities, regulations and technical requirements of the industry. By Chiranti Sengupta The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 33 2/26/08 6:00:14 PM 34 ME Developments Gateway to Saudi’s economic prosperity I n the last couple of years Saudi Arabia has posted strong economic growth thanks to oil revenues, structural reforms, economic diversification and stable governance. Although the Saudi economy is highly dependent on oil production, it has started boosting nonoil trade as well in order to drive economic growth and get integrated into the global economy. Since time immemorial Jeddah has sustained its importance as a trading port as it is the main gateway to Saudi Arabia. To enhance the operational efficiency of Jeddah Islamic Port (JIP) the project Red Sea Gateway Terminal (RSGT) was launched sometimes back to accommodate the next generation vessels. RSGT, when completed will have its own dedicated navigation channel and flaunt world-class equipment and infrastructure. According to Aamer Alireza, CEO, Red Sea Gateway Terminal, it will increase the importance of JIP among the regional seaports by expanding its handling capacity by 1.5 million TEU per annum. RSGT project With a total quay length of 1,035m and depths of 18m, this state-of-the-art terminal will have a 650m turning basin. Additionally it will include 1,680 reefer points, a planned and dedicated feeder berth and inter-modal connectivity to the Saudi Land Bridge project. It will have its own dedicated 16.5 m deep channel linking the JIP’s main channel. The privately developed and managed RSGT is expected to be ready to receive vessels by the fourth quarter of 2009. What’s happening now? The construction at the grass-root build-operatetransfer container terminal project has commenced this year. RSGT has engaged China Harbour Engineering Company Ltd for civil construction and Shanghai Zhenhua Port Machinery Co Ltd (ZPMC) of China for supply of cranes and other equipment. “Presently, China Harbour is setting up facilities on the site as well as mobilizing the equipment from China. The construc- “ The strategic location of the project combined with Saudi Arabia’s economic expansion, growth in containerized petrochemical exports, development of economicc cities, and government’s emphasis on transportatio on infrastructure investmentt will result in increased trade opportunities in the country. ” tion of the terminal is under way. And according to our specifications the equipment is in the design stage,” confirms the CEO. “On our marketing and business development side, The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 34 2/26/08 6:00:23 PM ME Development 35 the RSGT team is about to embark on an Asia tour to meet our prospective clients,” he adds. a very crucial time since it will augment capacity of the port and enable it to handle next generation ocean-going container ships. It will also provide an integrated logistics solution to its clients. Sourcing finance for the project RSGT has signed an Islamic financing agreement with Al Rajhi Bank for providing SAR 1,700 million for the development of the Jeddah Islamic Port’s third container terminal. Al Rajhi Bank and The Standard Bank of South Africa have jointly provided the financial advice to RSGT which is now implementing the development on a Build-OperateTransfer (B-O-T) basis. Saudi Arabia is at a juncture of economic diversification and growth and the whole world is eyeing at it. The Red Sea Gateway Terminal project has already received overwhelming responses from around the world. “Many leading players want to come on board and be part of the RSGT’s success story,” the CEO says. Set to create new job opportunities, RSGT will positively contribute to the economic development of the country. “The Al Rajhi Bank-Standard Bank consortium was chosen as the financial advisor because of their wealth of experience and strong multidisciplinary advisory team,” says Alireza. The container terminal is to be built at an estimated cost of about SR 1900 million. The SR 1,700 million Islamic Financing Facilities has been fully underwritten by Al Rajhi Bank, which includes SR 1,275 million Ijara facility to cover most of the equipment and construction related costs during the 22 months construction period. Al Rajhi Bank will provide SR 900 million and Saudi Fransi Bank will provide SR 375 million in Ijara facility for RSGT. The remaining SR 425 million Islamic facilities will be provided by Al Rajhi Bank which will include a standby facility, a working capital facility and a letter for credit for equipment supply. Aamer Alireza CEO, Red Sea Gateway Terminal a significant edge to trade flows and transshipment activities in Saudi Arabia. “The strategic location of the project combined with Saudi Arabia’s economic expansion, growth in containerized petrochemical exports, development of economic Benefiting Saudi economy According to the CEO of RSGT, the project will add cities, and government’s emphasis on transportation infrastructure investment will result in increased trade opportunities in the country.” He also points out that JIP has already reached its optimum level, so the development of RSGT comes at Market oriented business strategy The project aims at providing service excellence by designing and building the facility tailored to its customers’ requirements. “We are building our company based on market oriented business strategies. We are in contact with our potential clients and listen to their needs. We always want to add value to their needs and create a company which is tuned to the requirements of the market,” Poised to increase the port’s container handling capacity by more than 45 per cent, RSGT will increase its importance as a regional logistics hub by integrating it with the Tusdeer Bonded Re-export Zone. “RSGT aims to be an engine of growth for the economy and businesses by providing world class logistics solution, port development and operations,” comments Alireza. By Chiranti Sengupta Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 35 The Supply Chain & Logistics Group | www.sclgme.org 2/26/08 6:00:33 PM 36 ME Developments Bahrain and Oman sign pact with India and India also decided to increase the existing traffic entitlement from 8,500 seats to 20,000 seats per week with immediate effect, with India offering additional cities of Kozhikode, Lucknow and Bangalore. T he Indian economy is booming and the contribution by the Indian diaspora forms part of it. Tapping this boom, India has signed a major bilateral civil aviation pact with Bahrain and Oman, giving the over four million Indian diaspora in the Middle East more options. The pact comes close on the heels of the agreement India signed with Saudi Arabia. Bahrain’s flagship carrier Gulf Air immediately announced a daily service from Hyderabad with plans to increase the frequencies from Kochi and Kolkata. ‘While agreeing on designation of multiple airlines, both sides also decided to enhance existing traffic entitlement to 11,500 seats per week in each direction with immediate effect,’ an official statement said. have been included as an additional point of call besides Mumbai, New Delhi, Kochi, Thiruvananthapuram, Chennai, Hyderabad, Lucknow and Jaipur.’ The entitlement of seats to Oman has been enhanced to 11,550 seats per week. ‘The success of this swift bilateral aviation agreement between the Kingdom of Bahrain and India presents a golden opportunity for the two countries to boost their economic and cultural development,’ said Gulf Air ‘For the Sultanate of Oman, Bangalore and Kozhikode President Bjorn Naf. ‘Being the first Middle East carrier to operate to India, Gulf Air considers this as a token of appreciation for its longstanding commitment to serve India,’ Naf added. Recently, Saudi Arabia allowed Indian carriers to operate scheduled air service to Madina, 485 km from Makkah, which would allow Indian Haj pilgrims to land directly in the holy city, in the first such concession to any country. Saudi Arabia In the pacts with Bahrain and Oman, the two respective sides decided to free up all limitations on the cargo services, with no restrictions in frequency and point of call for carriers operating cargo services. ‘With the successful conclusion of the agreement, airlines of both sides will be able to add new services on the IndianBahrain route, which will be in the interests of travellers,’ the statement said. Oman has agreed to designated Indian carriers to use any point in Asia, including the United Arab Emirates (UAE), Qatar and Bahrain, as intermediate points, and any destination in Europe, North America, Asia and the UAE, Qatar and Bahrain as ‘beyond points’. This will allow Indian carriers to not only fly to Oman, but also pick up air traffic there to fly to other designated countries. The same will apply when they fly back to India. A similar concession has been extended by Bahrain. ‘The request of the Omani side to grant Mangalore as an additional point of call in India will be considered only after Mangalore is declared an international airport. For India the points of call in Oman are Muscat and Salalah.’ The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 36 2/26/08 6:00:40 PM AD The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 37 2/26/08 6:00:45 PM 38 Product Watch OneSack Dunnage Bags OneSack eliminates damage caused by loads shifting while in transit. Transit damage is an expensive and needless occurrence that can add to the cost of final goods delivery and impact on bottom line profits. OneSacks are large inflatable pillows made from an extruded LLDPE plastic film covered by a 1-6 layer of heavy duty ‘kraft’ paper. They are designed to slip flat between the voids in a load. Once inserted, the bag is inflated by compressed air, with the resultant expansion serving to `wedge’ the load against other pallets or the outside walls of the container. OneSacks are suitable for bracing loads in trucks, rail, or ship containers and are ideal for bracing appliances, chemicals, plywood paper, canned foods, particleboard, fresh produce, machinery. They are also the perfect bracing for any drummed, palletised, bottled, package or unitised goods. OneSacks prevent cargo damage by bracing loads against unwanted movement both laterally and lengthwise. Companies that adopt Dunnage Bag bracing over traditional techniques, experience significant cost savings by eliminating the need for carpenters, timber and extra dock time. OneSacks adapt themselves to almost any shape, space or void, thus making their use for bracing virtually limitless for any type of load. Additionally, the bag use no attachments, such as nails or plates that can damage your container and/or products. When shipping to third parties a one-way bag is typically selected. Multitrip (reusable) Dunnage Bags are ideal for inter-company or domestic shipping decreasing costs with each subsequent use and looking after the environment. For details contact : [email protected] Megadoor’s mega hangars aluminium beams. Megadoor is designed for buildings such as aircraft hangars, mine facilities, and naval slipways. The key to Megadoor’s adaptability is its light-weight construction system, developed in Sweden. Its unique door-leaves feature double vinyl-coated polyester curtains supported by horizontal Megadoor glides up and down in weathers e a l e d aluminium g u i d e s attached to the structure, and operates by lifting the bottom beam upwards, thereby stacking the intermediate beams one on top of the other, with the fabric folding on the sides. Megadoor is specifically built to fit individual customer needs. Some applications, for example, may require multiple doors to cover extremely large areas. Megadoor can also be configured for multiple-door openings using a patented swing-up mullion system. It is said to be extremely strong and durable, despite its light weight. It is designed so that accidental damage can be easily repaired with little or no interruption to normal traffic. The design is particularly suited to extremely harsh environments such as shot-blasting or painting facilities, since its fabric is virtually unaffected by sand, paint or grit. The Megadoor system is also highly weather resistant, with seals on both sides and at the bottom. It can be engineered to withstand almost any wind load by varying the size and spacing of the beams. For details contact: [email protected] The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 38 2/26/08 6:00:49 PM Product Watch 39 Noreq Rescue Boats The RRB fully complies with the latest SOLAS requirements and LSA Code. The boat is made out of fire retardant glass fibre reinforced polyester material (GRP). Main parts are laminated in independent moulds. To assure buoyancy and strength, foam is injected into certain areas between the inner liner and outer hull. There are also bulkheads built up with the keel to assure hull strength. A synthetic fender reinforced with stainless steel bar is fitted around the boat hull and protecting the boat against impact. All steel fittings are of stainless steel quality 316 L. Flightcom Denali The stability of Noreq Rescue Boats is ensured by their special design, as the outer and inner hulls are shaped in separate moulds, then connected to shape the seats and buoyancy tanks. The buoyancy tank provides sufficient buoyancy to keep the boat afloat when flooded and with all persons onboard. The boat can be delivered with or without an engine, and it has full SOLAS and BV-EC approval. Noreq has introduced new rescue boat, the RRB 500. The boat is equipped with 40 HP gasoline outboard engine, steering console and on/off load hook arrangement. The RRB 500 is light weighted and therefore ideal as a package together with our SCH 12-3.5 R davit. Further details may be had on www.noreq.no Aviation restraint designed specifically for children The AmSafe Child Aviation Restraint System (CARES) is the world’s first aviation alternative to a car seat. CARES is an innovative belt-andbuckle device that attaches directly to the airplane seatbelt. Simple to install, adjustable to fit virtually any size airplane seat, CARES is FAA certified for children weighing between 20-44 pounds occupying their own seat. Passengers with children can now check the bulky car seat through as luggage and take CARES on board. Weighing only one pound and fitting into a small carrying case, this child restraint provides a low-cost, easy and effective solution for improved child passenger safety. CARES is the first alternative aviation child safety device to be certified by the FAA for all phases of flight - taxi, take-off and landing. For details contact Louise Falk, [email protected] Flightcom’s Denali is an extremely lightweight headset that offers exceptional performance and outstanding comfort. The Denali is engineered to fit unlike any other aviation headset, providing excellent passive and active noise attenuation, a secure and comfortable fit and extremely reliable performance Denali’s protein leather ear seals help abate noise and offer a comfortable fit. The sleek ear domes stay securely in place, reducing side force. In addition to Denali’s soft and comfortable protein leather ear seals and headpad, our ANR model also has SPS, a digital power management circuit. The SPS conserves battery life by shutting off the ANR circuit when not in use. Full passive performance is maintained when the ANR circuit is off. Passive version 21dB NRR rating; ANR model achieves additional 1921dB at certain key low frequencies. Weight (passive): 11.1 oz. Weight (ANR): 13.4 oz. Colors: J3 Yellow or Graphite Blue Origin: U.S. Designed and Made Mic: Elliptical, noisecanceling electret; integral muff Noise Reduction: Additional 19-21 dB at certain low frequencies Power Source: ANR model: 9 Volt drop-in battery or 12-24 Volt aircraft panel power. For details contact : [email protected] The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 39 2/26/08 6:00:53 PM 40 Productwatch Hi-Viz Jackets Whatever environment one is working in, Hi-Viz jackets ensure day and night visibility while protecting one from electric arc, or flash fire dangers. All zippers on these jackets are molded nylon with nylon sliders. DragonFurTM by True North provides lightweight, breathable, wind-resistant, water-repellent warmth that’s fire resistant. The permanent protection won’t melt, drip, or support combustion in the air. It cannot be washed out or worn away. The features include: 3MTM Scotchlite reflective; two zippered hand warmer pockets; two large inside cargo pockets; full-length molded nylon zipper front with stand-up collar; drop-tail rear hem for increased coverage; stuff sack for highly compressible packing and breathable, quick-drying warmth. For details contact: Box 28789, Seattle, WA 98118. Honda’s new lawnmowers Honda Motor Co., Ltd. announced that it will import two newly released walkbehind lawnmowers—the HRG415C3 (410mm mowing width) and the HRG465C3 (460mm mowing width)— manufactured by Honda Europe Power Equipment S.A. (Takayoshi Fukai, President), located in Orléans, France. The new HRG415C3 and HRG465C3 both feature an auto-choke mechanism that automatically provides the optimum choke setting during startup. This eliminates the need to manually adjust Pallet nets critical to aircraft integrity nets are designed to exceed the stringent requirements of the FAA, CAA and IATA. The pallet net is the only certified form of textile restraint that, at any point during its life, may be called on to instantly restrain up to 6.8 tons at 3g and thus protect the integrity of an aircraft. For this reason, AmSafe’s pallet The knotless nets exemplify AmSafe Bridport’s commitment to innovation and its position as the leading global provider of engineered air cargo restraint solutions. This design both maximizes the strengthto-weight ratio and ensures that our nets can easily be repaired. When coupled with proprietary anti-abrasive process, which extends the net life, the knotless construction also reduces snagging, enabling faster buildup times for loads compared to other nets. For details [email protected] Toyota’s thunder - Tundra Toyota strives to build vehicles to match customer interest and thus they typically are built with popular options and option packages. Not all options/packages are available separately and some may not be available in all regions of the country. If you would prefer a vehicle with no or different options, contact your dealer to check for current availability or the possibility of placing a special order. Toyota Tundras are designed to meet most off-road driving requirements. Abusive use may result in bodily harm or damage. Toyota encourages responsible operation to protect the passenger, the vehicle and the environment. the choke for a richer intake mix during initial startup, a task that until now was standard procedure on conventional power product engines. This contributes to greater ease of use, allowing the operator to begin mowing right away after a simple startup procedure. The key features include- it employs a wax-type auto-choke mechanism that eliminates the need to manually adjust the choke before starting the engine and after it has warmed up, facilitating easier operation. Also, because the mechanism automatically maintains the choke at the optimum setting, the operator is able to begin mowing immediately after startup. It has an easy-to-grip, easy-to-operate mowing height adjustment knob. Six mowing height adjustments are available, starting at 20mm. It has wide rear tires and wheels with double ball-bearing construction offer comfortable control and solid reliability. The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 40 2/26/08 6:00:56 PM Productwatch 41 Tata Motors unveil world’s cheapest car effortlessly manoeuvre on busy roads in cities as well as in rural areas. Its monovolume design, with wheels at the corners and the powertrain at the rear, enables it to uniquely combine both space and manoeuvrability, which will set a new benchmark among small cars. When launched, the car will be available in both standard and deluxe versions. Both versions will offer a wide range of body colours, and other accessories so that the car can be customised to an individual’s preferences. Mr. Ratan N. Tata, Chairman of the Tata Group and Tata Motors, unveiled in January the Tata ‘NANO’, the People’s Car from Tata Motors that India and the world have been looking forward to. A development, which signifies a first for the global automobile industry, the People’s Car brings the comfort and safety of a car within the reach of thousands of families. The People’s Car will be launched in India later in 2008. Stylish, comfortable The People’s Car, designed with a family in mind, has a roomy passenger compartment with generous leg space and head room. It can comfortably seat four persons. Four doors with high seating position make ingress and egress easy. Yet with a length of 3.1 metres, width of 1.5 metres and height of 1.6 metres, with adequate ground clearance, it can Lane divider Tents for the family What makes a good tent? It is that one which can protect you from the elements. That is why you will want to keep an eye out for a tent with a proven weather protection system to help keep you dry, like a Coleman® tent with: weather-resistant fabric; protected seams; waterproof floors; leak-resistant seams; Fuel-efficient engine The People’s Car has a rear-wheel drive, all-aluminium, two-cylinder, 623 cc, 33 PS, multi point fuel injection petrol engine. This is the first time that a two-cylinder gasoline engine is being used in a car with single balancer shaft. The lean design strategy has helped minimise weight, which helps maximise performance per unit of energy consumed and delivers high fuel efficiency. Performance is controlled by a specially designed electronic engine management system. zipper protection and windstrong frame. The Coleman Montana tent is 16x7 feet and can sleep seven in the room. It has a mesh vent for increased ventilation. It is easy to carry and the instructions are easy to follow. It is made in China and Thailand. American Conveyor ’s rugged, high speed lane dividers are in continuous use at 36 dairies across the country. Constructed of stainless steel and Delran with wash-down proof sealed bearings they have been proved to be virtually maintenance-free in an industry where harsh wash downs are the rule. These lane dividers are mechanically driven units that require no electrical or air connections and their versatility and long-lived reliability has been successfully demonstrated with a variety of glass and plastic containers in round, rectangular, square and irregular shapes at speeds in excess of 400 cpm. The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 41 2/26/08 6:00:59 PM 42 Gateways Kathmandu new hub for Air Arabia a median age of just 20, is clearly among them. In this regard, we are especially pleased to join efforts with Yeti Airlines, which has nearly a decade of experience serving this market and unmatched management expertise.” “With this new hub in Nepal, Air Arabia will cover a new niche market, while continuing to offer the level of superior service that has made us one of the premier airlines in the Middle East. From Sharjah to Kathmandu, Air Arabia offers unmatched reach, and is now positioned to become one of the leading low-cost carriers in the world.” Air Arabia will be establishing a new hub in the Nepalese capital, Kathmandu, providing the Sharjah-based low cost carrier with a platform from which to serve markets stretching across South and Central Asia, the Far East, Middle East and Indian Subcontinent. Air Arabia and Yeti Airlines, the market leader in domestic air travel in Nepal, have signed an agreement to this effect. Air Arabia and Yeti Airlines will jointly establish a new low-cost carrier, based in Kathmandu that will provide affordable and convenient service to a broad range of international destinations. Air Arabia, a major shareholder in the new company, will apply its successful low-cost business model to the management of Nepal’s first international LCC. “This is an enormously significant agreement for Air Arabia, and an extremely timely one” said Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia. “As we set our sights on global expansion, we remain focused on youthful, fast-growing markets where the opportunities for growth are greatest. Nepal, with a population of 29 million and The Chairman of Yeti Airlines Lhakpa Sonam Sherpa said “we are extremely pleased to announce this partnership with Air Arabia, already a trusted and familiar name in Nepal. As one of the first airlines, after Nepal Airlines Corporation, in the country to receive an Air Operator Certificate to operate as an international LCC, we look forward to offering expanded choices for regional travelers, who will soon experience for themselves the many benefits of low-cost travel. Operating at the high standards established by both carriers, Yeti Airlines and Air Arabia will together revolutionise air travel in Nepal and across a much wider region.” Changi to manage Dammam airport Changi Airports International (CAI) has been selected as the preferred bidder by the Kingdom of Saudi Arabia’s General Administration of Civil Aviation (GACA) to manage and operate King Fahd International Airport (KFIA), in Dammam. The negotiations are in the final stages and is expected to be completed in two months. Mr. Chow Kok Fong, Chief Executive Officer of CAI said, “I am very pleased that we have emerged as the preferred bidder for the project as it would signify CAI’s second major airport management contract in the Middle East. The next step is to hold further discussions with GACA to finalize a contract that is at the best interests of both sides.” KFIA is the gateway to the Eastern Province of KSA, the largest province by landmass and population in the Kingdom. It is the world’s largest airport in terms of airport land, covering 780 sq km, 10 per cent bigger than the size of Singapore. The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 42 2/26/08 6:01:03 PM Gateways 43 DP World invests in Maputo Abu Dhabi Ports Company (ADPC) gets credit facility from HSBC Abu Dhabi Ports Company (ADPC) will get one year revolving credit from HSBC for Dhs 459m to meet the initial construction costs of Khalifa Port. Ahmed Al Calily, CEO and Managing Director of ADPC, and Youssef Nasr, Chief Executive Officer of HSBC Middle East, have signed the agreement to this effect. The arrangement is the second bridge facility arranged for ADPC to meet the initial construction costs of Khalifa Port. Strategically located between the cities of Abu Dhabi and Dubai in DP World is investing over US $32 million in the Maputo Port Development Company (MPDC), partnering with Grindrod International Ltd and Mozambique Gestores SARL. The seaport giant - DP World holds the concession to operate the container terminal at Maputo Port and is already a 60 per cent shareholder in Maputo International Port Services (MIPS), the container terminal operating company, with the Mozambique Ports and Railways Company holding the remaining 40 per cent. The terminal has 100,000 TEU (twenty-foot equivalent container unit) capacity. DP World has now purchased 48.5 per cent of Portus Indico - Sociedade de Servicos Portuarios, SA. Grindrod International Ltd holds another 48.5 per cent, with Mozambique Gestores, SARL holding the remaining three per cent. Portus Indico has a 51 per cent interest in MPDC which holds the concession for the overall Port of Maputo until 2018, with an option to extend to 2028. Portus Indico separately also holds the agreement for the management of MPDC. The Government of Mozambique holds the remaining 49 per cent share interest in MPDC. The Chief Executive Officer of DP World, Mohammed Sharaf (check name) said “We are pleased to have the opportunity to invest in Maputo. The port is the backbone of the economy and we look forward to helping develop the infrastructure there and contribute to the growth of Maputo and Mozambique. Maputo is also one of the main corridors for the Southern African hinterland. We plan to invest further in container handling facilities there but we also believe there is potential to grow commodity traffic as well, and with our expertise in general cargo, bulk and break bulk handling we believe we can contribute significantly to fast tracking the growth in this cargo sector through Maputo.” “We are very pleased to be working in partnership with Grindrod and Mozambique Gestores in Portus Indico. They are both experienced and professional operators in this market. Together we have created a partnership that will support the investment required to build the Port of Maputo into a notable force in the logistics chain in Southern Africa.” Taweelah, Khalifa Port and Industrial Zone (KPIZ) is a multi-billion dollar project designed as a multi-purpose facility will have a world-scale container and industrial port and industrial, logistics, commercial, educational, and residential special economic and free zones over 100 square km area. The zone will be part of the ambitious ‘Plan Abu Dhabi 2030’. The zone will play a major role in Abu Dhabi’s industrial and economic diversification in serving as a key hub for large scale industrial investments that will be serviced by state-ofthe-art port, transport and other infrastructure facilities and services. The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 43 2/26/08 6:01:08 PM 44 Transportation Sharjah sets to revolutionize traffic system W ith Dubai growing at an unprecedented rate Sharjah as the next-door neighbor is enjoying the spill over effect of the growth. The population of Sharjah has increased manifold in the last couple of years leading to traffic congestion and other related problems. To upgrade roads and traffic condition Sharjah Municipality has recently introduced a state-of-the-art and fully automated parking ticket system solutions as part of its ongoing effort to enhance service efficiency within the city. The parking ticket system will coincide with another new facility that will enable motorists to check parking fines online. “Just by sending a text message to the control room section of Sharjah Municipality now motorists can extend their parking duration as well,” says Abdul Rahman Ahmed Al Mahmoud, Head of Transport and Communications, Sharjah Municipality. The Transport and Freightage Department of Sharjah Municipality is the first organization to introduce a leading edge mobility solution in the country. Launched in association with Motorola, Zebra Technologies and Bar code Gulf the new system allows traffic wardens to issue fines within seconds and synchronize the issuance seamlessly with Sharjah Police Traffic Department. This system according to Abdul Rahman helps deliver faster and more efficient result to Sharjah residents and visitors. “After one year of testing different products we chose Barcode Gulf, distributor for Zebra technologies and Motorola, based on the quality, value and performance of their solutions and products offered. This successful implementation is a step forward to reaching our wider goals in delivering services in all areas of Sharjah,” adds Abdul Rahaman. The new system revolutionizes the existing procedure where traffic wardens take up to three minutes to issue a ticket. It eliminates chances of human error in data entry because this solution completely does away with hand writing issues. Abdul Rahman Ahmed Al Mahmoud Head of Transport and Communications, Sharjah Municipality “Traffic wardens are issued with a Motorola MC 70 handheld computer and a Zebra MZ220 printer, where they can monitor parking tickets by scanning the barcode on the parking card to see if the ticket is still valid. In case of ticket expiry the wardens can issue parking fine on the spot,” explains Abdul Rahaman. The wardens can use the system to inspect all parking spaces in Sharjah. In the first phase of the DH2 million project Sharjah Municipality has deployed 150 handheld computers. The zebra MZ220 are unobtrusive printers that weigh less than 3/4th of a pound so they can be worn comfortably for an entire shift. Stylish and compact, they are ideal for customer facing applications. Its features and functions are intuitive and easy to operate. Is paid parking the only solution to the traffic woes? “To some extent paid parking is the solution to ease traffic congestion and improve situation,” says Abdul Rahaman. “We have introduced paid parking only in the crowded areas. Experience says in the crowded areas people cannot drive smoothly through the main roads because of double parking and illegal parking. By introducing paid parking in congested areas hopefully we will be able to tackle this problem. Our primary objective is to organize the parking lots in Sharjah and improve traffic flow,” he adds. By Chiranti Sengupta The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 44 2/26/08 6:01:11 PM The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 45 2/26/08 6:01:20 PM 46 Trade & Economy Philippines President visits UAE to strengthen trade relations O ver 300,000 Filipinos live in the United Arab Emirates (UAE) and their remittances reached about $400 million in 2007, having further growth potential. Taking this forward was the Philippines President Gloria Macapagal-Arroyo who visited the UAE in the beginning of the year, to boost bilateral trade relations between the two. Dubai’s imports from the Philippines were over Dh679 million in 2006 and non-oil trade amounted to Dh788.3 million. Manila’s imports from the UAE, mostly oil, were worth 356 million dollars in 2006 while exports totaled only $164 million. The President wanted the UAE to import more. “We would like the UAE to buy more from the Philippines. They buy apples, they buy bananas and they buy electronics and we would like them to import our fashion garments, footwear and furniture.” The highlight of the President’s visit was her call to the oilrich UAE investors to invest in Philippines in the areas of information technology, agribusiness, medical tourism, hospitality and leisure and real estate. Another highpoint was her appeal to the Asian nations to work “more closely together in view of the threat of recession in US and its impact on the rest of the world.” “The global economic situation is a prime issue for us with volatility in the US, but the Philippines among its 107,563 individual and corporate members. Data released by Dubai Chamber indicate that exports by its members to the Philippines surged 321.6 per cent to Dh72.52 million in 2007 from Dh17.2 million the previous year. They also show that Dubai’s export and re-export to the Philippines reached Dh109.3 million in 2006. These products include base metals and related items; machinery, electrical and electronics equipment; vehicles, aircraft and transport equipment; plastic and rubber items and prepared foodstuff. Gloria Macapagal-Arroyo President, Philippines will withstand any impact of the US slowdown due to its strong economic fundamentals,” she said while addressing members of the Dubai Chamber of Commerce and Industry. In her presence, the DCCI and the Philippine Chambers of Commerce and Industry signed a Memorandum of Understanding to explore business opportunities. The DCCI has 75 Philippine firms Though there have been investments from the UAE in the Philippines, she noted that it had not reached the potential yet. One of the main companies to operate in the Philippines has been the giant port operator, DP World. Presently, Dubai World’s leisure arm, Kerzner has announced plans of setting up a beach resort in the Philippines. Also Kuwaiti firms including logistics provider Agility plan to invest over $10 billion in infrastructure projects there such as airports, ports, railways, power stations and telecommunications. The UAE on its part imports from the Philippines machinery, electrical and electronics equipment, vegetable products, textiles, toys and furniture. Jafza to develop Subic Bay During her visit, Jafza International signed an agreement with Subic Bay The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 46 2/26/08 6:01:25 PM Trade & Economy Metropolitan Authority (SBMA) for the development and regeneration of Subic Bay Freeport in the Philippines. Salma Hareb, CEO Jafza and Economic Zones World signed the MoU with Armand Arreza, Administrator and CEO, Subic Bay Metropolitan Authority (SBMA) for an estimated investment of $200 million to $250 million over 3-5 years. around the world, as well as our intention to form a truly global logistics network.” Armand Arreza from SBMA stated: “We are pleased to announce our strategic partnership with Jafza International, known for its long-term customer relationships and world-class services. The company’s presence and involvement with the development of Subic Bay Freeport will certainly augment its value to make it an important port of call for commerce, industry and leisure in the region. We hope that relations and cooperation between the two sides will expand to wider horizons.” President Arroyo who toured the free zone and port met a number of senior Dubai World officials including Jamal Majid bin Thaniah, Executive Vice-Chairman DP World and Group CEO Port & Free Zone World, Mohammed Sharaf, CEO DP World, Salma Hareb, and Mohammed Al Muallem, Senior Vice President and Managing Director DP World, UAE region. The Subic Bay agreement incorporates Jafza International’s proposal of the phased lease and consolidation of four areas within the Subic Bay Freeport to form an adjacent industrial/ logistics zone within the Freeport as well as the renewal and re-alignment of a prestigious residential and leisure area. The four areas 47 under deliberation are the industrial Technopark, Boton Wharf, Subic International Airport and the residential Cubi area. Salma Hareb said “The Philippines’ trade and economic policies and the strategic location of Subic Bay not only gives it a genuine edge as an investment area because of its Freeport status but also makes it an ideal gateway to Asian markets. The Subic Bay Freeport fits well in our agenda of forming beneficial alliances and expanding operations to vital business destinations Subic Bay is the former Asian Pacific base of the United States Navy and has been operated as a freeport since the mid 1990s. The Philippine government has heavily supported the rapid expansion and development of Subic Bay and has been instrumental in upgrading the local infrastructure (expressways, railways and Clark Airport) in the area. The Subic Bay Area is slated to become a world-class destination for business, commerce and leisure in the Philippines. The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 47 2/26/08 6:01:29 PM 48 HR/Academia Authentic Personal Branding I n life, as in business, branding is more effective, powerful, and sustainable than marketing and sales and an effective way to eliminate your competitors. It’s about influencing others, by creating a brand identity that associates certain perceptions and feelings with that identity. Branding isn’t just for companies anymore. There is a new trend called Personal Branding. Successful Personal Branding entails managing the perceptions effectively and controlling and influencing how others perceive you and think of you. Having a strong Personal Brand seems to be a very important asset in today’s online, virtual, and individual age. It is the positioning strategy behind the world’s most successful people, like Oprah Winfrey, Tiger Woods, Michael Jordan, Donald Trump, Richard Branson and Bill Gates. It’s therefore important to be your own brand and to become the CEO of your life. Branding from a personal marketing (selling) point of view. Personal Branding is more than just marketing and promoting yourself. Everyone has a Personal Brand but most people are not aware of this and do not manage this strategically, consistently, and effectively. You should take control of your brand and the message it sends and affect how others perceive you. This will help you to actively grow and distinguish yourself as an exceptional professional. Most traditional Personal Branding concepts focus mainly on personal marketing, image building, selling, packaging, outward appearances, promoting yourself, and becoming famous, which can turn into an ego trip and let you be perceived as egocentric and selfish. They define Personal Your Personal Brand is the synthesis of all the expectations, images, and perceptions it creates in the minds of others, when they see or hear your name. The boxed text below shows some examples related to this aspect of Personal Branding. Your Personal Brand should be authentic. Authentic Personal Branding is a journey towards a happier and more successful life. Your Personal Brand should therefore emerge from your search for your identity and meaning in life, and it is about getting very clear on what you want, fixing it in your mind, giving it all your positive energy, doing what you love and develop yourself continuously. Your Personal Brand should always reflect your true character, and should be built on your values, strengths, uniqueness, and genius. If you are branded in this organic, authentic and holistic way your Personal Brand will be strong, clear, complete, and valuable to others. You will also create a life that is fulfilling and you will automatically attract the people and opportunities that are a perfect fit for you. If you are not branded in this unique way, if you don’t deliver according to your brand promise, and if you focus mainly on selling and promoting yourself, you will be perceived egocentric, selfish and a unique jerk, and branding will be cosmetic and a dirty business. no vision + no self-knowledge + no self-learning + no thinking + no mindset change + no integrity + no happiness + no passion + no sharing + no trust + no love = no authentic Personal Branding Love is an important element in this Personal Branding equation. It is about loving yourself (self-love), loving others, and loving what you do. You should love yourself in at least equal measure to others or things. This can be found in most religions: “to love others as you love yourself”. Remember what Abraham Maslow said: “We can only respect others when we respect ourselves. We can only give, when we give to ourselves. We can only love, when we love ourselves”. Without knowing who you The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 48 2/26/08 6:01:34 PM HR/Academia 49 is about your true values, beliefs, dream, and genius. A brand that is in harmony with your dreams, life purpose, values, passion, competencies, uniqueness, genius, specialization, characteristics, and things that you love doing. It’s based on my new book entitled “Effective Personal and Company Brand Management; A New Blueprint for Powerful and Authentic Personal and Company Branding” (Information Age Publishing Inc., 2008, USA), that has been translated in 20 languages. In this book I have introduced some powerful tools to deliver peak performance and to create a stable basis for trustworthiness, credibility, and personal charisma. This book offers an advanced breakthrough formula and a new blueprint to build, implement, maintain, and cultivate an authentic, distinctive, relevant, consistent, concise, meaningful, crystal clear, and memorable Personal Brand, which forms the key to enduring personal success. This new approach places more emphasis on understanding yourself and the needs of others, meet those needs while staying true to your values, improve yourself continuously, and realize growth in life based on this Personal Branding journey. This should be based on your vision, rather than inventing a brand that you would like to be perceived as and to sell this to others. When we think Oprah Winfrey, we think warmth and women’s empowerment. Bill Gates brings to mind gadgets, geeks, and philanthropy. Donald Trump is associated with ego and a decisive ruthlessness. JK Rowling is the professional writer behind the Harry Potter series Einstein is the great and gentle genius Mother Teresa brings to mind helping the poor and saintly behaviors Michael Jordan is the greatest basketball player today Tiger Woods is the greatest golfer in the world are (self-knowledge), it’s very difficult to love yourself and others. You need to make a positive emotional connection with yourself and find yourself interesting first, otherwise others you will not make a positive emotional connection with you and will not find you interesting. With an authentic Personal Brand, your strongest characteristics, attributes, and values can separate you from the crowd. Without this, you look just like everyone else. In part 2 of this article I introduce an organic, holistic and authentic Personal Branding model which will help you to unlock your potential and build a trusted image of yourself that you want to project in everything you do, which In my related seminar/workshop in the UAE each of the phases in the authentic Personal Branding model will be discussed in depth and illustrated with many examples and cases. The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 49 2/26/08 6:01:37 PM 50 HR/Academia Building an authentic Personal Brand is an evolutionary and organic process and a journey towards a successful life. I am including below a holistic blueprint and roadmap to help you formulating and implementing an authentic Personal Brand identity. This organic model consists of the following four phases (see Figure 1), which are the building blocks of a strong authentic Personal Brand: 1. Define and formulate your Personal Ambition; This phase involves defining and formulating your Personal Ambition in an exciting and persuasive manner and making it visible. Your Personal Ambition is the soul, starting point, core intention and the guiding principles of your Personal Brand. It’s the fuel for your brand and encompasses your personal vision, mission, and key roles, related to four perspectives, that should be in balance: internal, external, knowledge & learning, and financial perspectives (see Figure 2). This will create balance in your brand and in your life. It is about identifying yourself and figuring out what your dreams are, who you are, what you stand for, what makes you unique and special, why you are different than anyone, what your values are, and identifying your genius, incorporating an introduced breathing and silence exercise. You are almost twice as likely to accomplish your brand if you write this down. Formulation is critical to building a strong brand. So take the time to think about your life and to write down your Challenge Plan Personal Ambition statement. The Act Deploy breathing and silence exercise that I have introImplement and Cultivate your duced in the book Personal Ambition, will help you to think Personal Brand and PBSC deeply during this soul searching process, to discover your genius, values and uniqueness, and to fix this in your mind. It will provide you life energy to translate the Personal Ambition into Dr. Hubert Rampersad action. Your Personal Ambition makes your Personal Brand Personal and links this to your values. meaningful, exciting, inspiring, compelling, enduring, crystal clear, ambitious, persuasive and memorable Personal Brand promise, and use it as the focal point of your behavior and actions. Take the time to write down your Personal Brand statement, which is in harmony with your Personal Ambition, and create a related compelling brand story to promote the brand called You. First of all, perform a personal SWOT analysis (Strengths, Weaknesses, Opportunities and Threats) and evaluate yourself after using the breathing and silence exercise. The result of this analysis is the definition of your personal life style. This relates to your personal ambition and brand objectives. Your brand objectives entail what you want your Personal Brand to accomplish. These should also be related to the four mentioned perspectives: internal, external, knowledge & learning, and financial (see Figure 2). You also need to determine your specialization, concentrating on a single core talent. 2. Define and formulate your Personal Brand; This phase involves defining and formulating an authentic, distinctive, relevant, consistent, concise, Define your main specific services, your key characteristics your single leading and most powerful attribute. Finally, determine what your audience (domain) is and what their greatest needs are. Your Personal Brand Statement entails Internal External the total of your Personal Ambition, Personal Define and Formulate your brand objectives, specialty, serPersonal Ambition Personal Mission vice dominant attribute, and domain. It also includes your Personal Key Roles Unique Value Proposition. The next step in this secKnowledge & Financial Learning Define and Formulate your ond stage is to define Personal Brand your Personal Brand Internal External Story (Elevator Pitch), Personal SWOT Personal Brand Objectives which is the essence of Specialization Services what you want to say Dominant Attribute about your Personal Domain Personal Brand Statement Brand in order to proPersonal Brand Story Personal Logo duce a positive emoKnowledge & Financial & Slogan Learning tional reaction. Finally you should design your Personal Logo, which is Internal External Personal Critical a single graphical symSuccess Factors bol that represents your Personal Objectives Personal Brand. Formulate your Personal Performance Personal Balance Measures Scorecard (PBSC) Personal Targets Personal Improvement Actions Knowledge & Financial Learning Fig.: Authentic Personal Branding Model (© Hubert Rampersad) I have summarized my Personal Ambition, Personal Brand statement, logo, and slogan on a small card The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 50 2/26/08 6:01:45 PM HR/Academia 51 Total Performance Scorecard TM TPS Linking Human Capital to Businesss Success and keep this in my pocket every day (see below). I am using this as a compass for my actions and decisions, to keep me focused, to guide me in the right direction, and to help me communicate my brand story effectively. Personal Ambition & Personal Brand Hubert Rampersad and innovative organizations to unlock their potential Student: Learn something new every day and always be a scholar Personal Brand Statement Linking Human Capital to Business Success Passionate and compassionate to inspire learning individuals to unlock their potential 1. Formulate your Personal Balanced Scorecard (PBSC); Personal Ambition and Personal Brand have no value unless you take action to make them a reality. Therefore the emphasis in this stage is developing an integrated and well balanced action plan based on your Personal Ambition and Personal Brand to reach your life and brand objectives and to eliminate any negative elements. It’s about translating your Personal Ambition and Personal Brand into your PBSC (action). Remember: vision without action is hallucination and a Personal Brand without continuous improvement of yourself based on your PBSC is merely cosmetic and will not lead to sustainable development of your potential and marketing success. 2. Implement and cultivate your Personal Ambition, Personal Brand and Personal Vision To live life completely, honestly, and compassionately and to serve the needs of mankind to the best of my ability. I want to realize this in the following way: • Enjoy physical and mental health • Passionate and compassionate to inspire others, earn their respect, and always serve out of love • Energize innovative organizations where human spirit thrives and which model the best practices in business performance and personal integrity • Experience enjoyment in my work by being full of initiative, accepting challenges continuously, and to keep on learning • Achieve financial security Personal Mission Enjoy the freedom to develop and share knowledge, especially if this can mean something in the life of others. Personal Key Roles In order to achieve my vision, the following key roles have top priority: Spouse: Rita is the most important person in my life Father: Guide Rodney and Warren on the road to independence Coach: Love to serve learning individuals Stand out in the crowd and dedicated to energize innovative organizations within the service and manufacturing industry. Using my holistic insight and innovative Total Performance Scorecard principles, I promise to help my customers to realize their dreams. Personal Balanced Scorecard; Personal Ambition, Personal Brand, and the PBSC have no value unless you implement them to make it a reality. Therefore the next step is to implement, maintain, and cultivate your ambition, brand and PBSC The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 51 2/26/08 6:01:57 PM 52 HR/Academia effectively. You have to articulate your Personal Brand with love and passion, be committed to change, and improve your perceived value in the marketplace and yourself continuously. In addition, try to build credibility and become an expert in your field. Get the word out through a variety of media channels, do work you love which is consistent with your Personal Brand and values, gain experience in areas of your brand in which you are weak, promote yourself, market your brand frequently and consistently, make conscious choices about the people you associate with, build a strong network, deliver on your brand promise, and in short live according to your brand promise. • Personal Ambition is the soul, starting point, core intention and the guiding principles of the Personal Brand • Personal Brand without Personal Ambition is not personal and not authentic • Personal Brand and Personal Ambition without Personal Balanced Scorecard is hallucination • Personal Brand, Personal Ambition, and Personal Balanced Scorecard without implementing these according to the Plan-Deploy-Act-Challenge cycle is a dirty business • Personal Brand, Personal Ambition, Personal Balanced Scorecard, and implementation according to the Plan-DeployAct-Challenge cycle is the Personal Brand Manifesto Personal Vision Internal External Personal Mission Personal Key Roles Personal Ambition Personal Brand Objectives Specialization, Service, Dominant Attribute Personal Brand Domain Personal Brand Statement Personal Brand Story Personal Critical Success Factors Personal Objectves Personal Performance Measure Financial Personal Targets Personal Improvement Actions As we can see from Figure 1, the Personal Branding model consists of four wheels, which are interrelated and need to turn in the right direction in order to get the large Personal Branding wheel moving an evolving in the right direction successfully. The model gives us insight into both the way authentic Personal Branding can be developed effectively and the coherence between its different aspects. This holistic Personal Branding framework will help you to create a brand that builds a trusted image of yourself and will help you enrich your relationships with others, master yourself, unlock your potential, and develop self-esteem. By Personal Balanced Scorecard (PBSC) Knowledge & Learning aligning your Personal Brand with yourself you will create a stable basis for your trustworthiness, credibility, and personal charisma. Who you really are, what you care about, and were your passions lie should come out in your brand, and you should act and behave accordingly (you should be yourself) to build trust. Trust will be built faster when others believe you are real and when they witness you being true to your beliefs and aligned with who you really are. You will build trust when your values connect to your attitudes and actions and when you will be true to yourself. The result of this brand building process is a Personal Brand identity that is not a not fake, not cosmetic, not an ego trip, not selfish, not focused on just promoting yourself, and not a dirty business. In my related seminar/workshop in the UAE each of the phases in the authentic Personal Branding model will be discussed in depth and illustrated with many examples and cases. Author: Dr. Hubert Rampersad President, TPS International (USA) & Vice-President, TPS Arabia The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 52 2/26/08 6:02:01 PM UAE Infrastructure 53 Emirates Modern Industrial Area Adding a new dimension to Umm Al Qawain the years with the aim of becoming the leading property developer in the region. In 2005, Tameer Holding formed a strategic partnership with Al Rajhi Investment Group and today the firm’s investment portfolio in the realty market totals more than AED150 billion. In addition to its design and quality it is Tameer’s commitment to carrying out work and delivering on time which helps it maintain an edge in this competitive market. Omar Ayesh President, Tameer Holding W ith a complete infrastructure and range of state-of-the-art services, The Emirates Modern Industrial Area (EMIA) is designed to cater to the needs of commercial and industrial organizations. Located adjacent to the Emirates Road Highway in Umm Al Quwain, the project site is just 15 to 25 minutes drive from Sharjah, Dubai and Ajman. Spanning approximately 80 million square feet, EMIA is an AED150 million commercial, industrial and residential development with a range of infrastructural facilities from storage space to labour accommodation. The project is conceived and developed by Tameer, a UAE based organization which has grown and expanded over The project has been designed in such a way that each plot offers optimum use of its ground, mezzanine and first and second floors with direct street access which ensures smooth logistical operations. Provision has also been made for ample labour camps and storage space in the back area of each plot. According to Omar Ayesh, President of Tameer Holding, “It is the first development of its kind in Umm Al Quwain and offers investors a complete infrastructure, uniquely tailored to the needs of industrial enterprises.” He also adds that in comparison with neighboring emirates such as Dubai and Sharjah where space is at a premium EMIA can offer excellent piece of real estate at extremely competitive rates, while the site’s location does not compromise on accessibility to major transport routes. “The infrastructure and facilities contained in the development itself comprise an integrated community, with all necessary community services and amenities within close reach.” EMIA and its impact on Umm Al Quwain Tameer originally intended to sell out the project for AED1.4 billion but finally the sale exceeded AED4billion. “We are confident that EMIA will continue to attract more businesses to Umm-al Quwain, increasing liquidity and further boosting the emirate’s economy,” says Ayesh. The EMIA is the The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 53 2/26/08 6:02:05 PM 54 UAE Infrastructure first of its kind in Umm Al Quwain and by means of its practical and spacious layout lends itself to the utmost streamlining of industrial activities especially in terms of logistics and accessibility. The thrust and infrastructure of the project are ideally suited for companies dealing with logistics and supply chain industry such as warehousing, removals and packaging businesses. The project has made ample provision for labour accommodation. It encourages light manufacturing industries as well. The EMIA, in fact, does not want to restrict itself by patronizing any particular industry. It welcomes all types of businesses here. “We want EMIA to operate as a self-contained commercial, industrial and residential community and it is for this reason that the project also includes space for shops, a business centre, office spaces and residential areas. What is most satisfactory about this project is we have received tremendous responses from number of leading corporations which significantly exceeded our expectations,” points out Ayesh. Companies primarily from the UAE, India, Pakistan, Iran, Europe and other GCC countries are driving EMIA’s growth and success going forward. Generating employment By attracting a wide range of industries to set up base in Umm Al Quwain, EMIA plays an important role in its endeavor to create job opportunities in this region. The industries have opened avenues not only for manual labourers but also for highly skilled professionals who come here from all over the world. And as people relocate to Umm Al Quwain additional opportunities are automatically created in the residential real estate market, education and hospitality sectors. “An industrial park of this magnitude has a knock-on effect in terms of job creation- one could safely say that job creation is a byproduct of the development like this,” he avers. When other parts of the UAE are progressing rapidly Umm Al Quwain needed that much needed kick start. The Emirates Modern Industrial Area is designed in such way that it is capable of overhauling the industrial landscape of Umm Al Quwain. It can be very well considered a true addition to the industrial areas of the UAE which compliments the vision of this country. The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 54 2/26/08 6:02:12 PM Legal Outlook 55 Carrier of goods - Its risky business !! Dr. Khalid M. Kadfoor Al Mehairi A common carrier is one whose regular business is carrying goods or passengers from place to place for all persons who choose to employ the service. Common carriers hold themselves out to carry goods or passengers from one place to another, for all persons who offer to employ them. Examples of common carriers are bus service companies, taxicab companies, and delivery companies. act of God, or of the enemies of the country, or by the act of the owner of the property. Given the high potential risk of damage and accidents, logistics companies are required to take all reasonable precautions to prevent any loss, damage or accident to cargo, materials or equipments held under their premises. Cargo risks vary considerably as there are innumerable types of goods imported and exported via several modes of transport to ports and places throughout the world. The carriers and consignors deliver the containers and container goods to harbour warehouses, transport stations or other places of mutual consent in the manner as specified in the bill of lading. No responsibility or liability whatsoever shall attach to the consignor for any loss or damage to goods unless such loss or damage occurs whilst the goods are in care of the consignor, or is due to the wilful act or default of the consignor. Further, the consignor shall under no circumstances be liable for loss or damage incurred through goods being tendered with inadequate packing, or any loss or damage whatsoever caused by the perishable, fragile or brittle nature of goods. A common carrier of goods is in all cases entitled to demand the price of carriage before he receives the goods, and if not paid he may refuse to take charge of them; if, however, he take charge of them without the hire being paid he may afterwards recover it. The compensation which becomes due for the carriage of goods by sea is commonly called freight. The carrier is also entitled to a lien on the goods for his hire, which, however, he may waive; but if once waived, the right cannot be resumed. The consignor or shipper is commonly bound to the carrier for the hire or freight of goods. But whenever Common carriers are generally of two descriptions, namely carriers by land and carriers by water. Of the former description are the proprietors of stage coaches, stage wagons or expresses which ply between different places and carry goods for hire; and truck men, teamsters, cart men and porters who undertake to carry goods for hire as a common employment from one part or a town or city to another are also considered as common carriers. Carriers by water are the masters and owners of ships and steamboats engaged in the transportation of goods for persons generally for hire and lighter men, hoymen, barge-owners, ferrymen, canal boatmen and others employed in the like manner is so considered. By the common law a common carrier is generally liable for all losses which may occur to property entrusted to his charge in the course of business, unless he can prove the loss happened in consequence of the The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 55 2/26/08 6:02:20 PM 56 Legal Outlook the consignee engages to pay it, he also becomes responsible. It is usual in bills of lading to state that the goods are to be delivered to the consignee or to his assigns, he or they paying freight, in which case the consignee and his assigns by accepting the goods impliedly become bound to pay the freight, and the fact that the consignor is also liable to pay it will not, in such case, makes any difference. Common carriers are bound to use extraordinary care and diligence to carry safely those whom they take in their coaches. But not being insurers, they are not responsible for accidents when all reasonable skill and diligence have been used. A carrier can limit its liability by contract, unless forbidden by statute. Thus a statement limiting the amount of a carrier’s liability may be put on a bill of lading given as a receipt for a freight or express shipment, or on a receipt for a freight or express shipment, or on a receipt given a passenger for the passenger’s baggage. Such statement is considered binding by the courts and relieves the carrier of additional liability. The general rule is that a carrier may relieve itself from all liability except for loss or damage caused by it own negligence. A common carrier is an organization that transports people or goods, and offers its services to the general public. In contrast, private carriers do not offer a service to the public, and provide transport on an irregular or ad-hoc basis. Common carriers typically transport persons or goods according to defined routes and schedules. Airlines, railroads, bus lines, cruise ships and freight companies may be common carriers. About Author: Dr. Khalid Kadfoor Al Mehairi is the Founder of Emirates Advocates & Legal Consultants in the UAE. It should be mentioned that the carrier only transporting the goods on a means of transport refers to the person (legal or physical) that is referred to as the “actual carrier”. signs a contract of carriage with the shipper. The carrier does not necessarily have to own Although common or even be in the possession of a means of transport people[1] transport. Unless otherwise agreed upon in the United States the term may also refer to contract, the carrier may use whatever means telecommunications providers and public of transport as long as it is the most favourable utilities. In certain U.S. states, amusement from the cargo interests’ point of view. The parks that operate roller coasters and carriers’ duty is to get the goods to the agreed comparable rides have been found to be destination within the agreed time or within common carriers; a famous example is reasonable time. The person that is physically Disneyland.[2] carriers or goods, generally in the The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 56 2/26/08 6:02:23 PM Events Spotlight 57 Oil and Gas Refinery Asia 2008 Grand Copthorne Waterfront, Singapore March 10-11 Refineries have been profiting from the ongoing global shortage in refining capacity. Existing refineries across Asia are looking into upgrading and modernisation in order to comply with increasingly stringent environmental and product quality standards and successfully keep up with the demand for both product quality and volume. As we look for more efficient alternatives to power our lives, the uncertainty in future consumption of gasoline and crude oil increases which will leads to uncertainty in fuel pricing. This conference will address the challenges faced by the refiners in all the emerging markets and will cover key topics such as refinery economics, supply and demand issues, investment strategies and opportunities, the impact of high oil prices, refinery integration as well as the latest in technological advances and the expansion of low-cost production facilities. This is your chance to meet with leading refinery experts and decision makers who can share their valuable experiences with you. For details contact : [email protected] Supply Chain Management – Opportunities and Challenges American University of Sharjah, Sharjah, UAE April 25-27 Delving into latest developments in supply chain management The American University of Sharjah (AUS) - College of Engineering is organizing an international symposium on “Supply Chain Management—Opportunities and Challenges”. The event will take place from April 25 to 27. Dr. Mohammed Al Zarouni, Director General of Dubai Airport Free Zone Authority and Vice Chairman and CEO of Dubai Silicon Oasis Authority is the Honorary Chair for this event. The symposium will delve into the latest developments, applications, and technologies in the field of supply chain management. The target groups are individuals working in the field of supply chain management, distribution, logistics, inventory control, warehousing, procurement, customer TransLog Asia 2008 Intercontinental Hotel, Singapore, April 9-11 Transport and logistics driving business Challenges facing refineries Downstream oil businesses work in highly competitive markets, characterised by tight margins. Cost improvement, quality and control of the production are becoming a critical factor in the downstream product’s market. In order to protect and build margins and revenues, you need to achieve operational excellence throughout the supply chain, from refining and distribution to stock control and customer loyalty. 1st Intra Asia Summit service, manufacturing, operations, and shipping. The following keynote speakers will be sharing their experiences during the conference: Mr. Khaled Lootah: Regional CEO—Microsoft (Middle East); Dr. Mo Bazara: Senior Vice President, Supply Chain Solutions—Agility (USA); Dr. Alain Martel: Professor of Supply Chain Engineering & Management-University of Laval, Canada; and Dr. Adel Guitouni: Lead Defense Scientist with Defense R&D Canada – Valcartier. Specialized training on various topics related to SCM will be held during the conference. Full details about the topics that will be addressed during the one day training sessions are available on www.aus.edu/conferences/ isscm2008. Beacon Events in collaboration with Global Institute of Logistics and The Logistics Institute – Asia Pacific is delighted to present its premier benchmarking and networking summit for transport and logistics executives - TransLog Asia 2008 – 1st Intra Asia Summit. This is a major new summit taking place in Singapore from 9-11th April at the Intercontinental Hotel in Singapore. Transport and Logistics plays a pivotal role in the Singapore economy – it is a dynamic nation that continually upgrades it transport and logistics infrastructure to maintain global hub status. The transport and logistics sector has always been key to Singapore and it is a sector that is important as an industry and an enabler. As an industry, transport logistics accounts for more than 8% of GDP and as an enabler, it gives companies operating out of Singapore a significant competitive advantage. Beacon working together with leading industry associations will ensure that this summit is relevant, topical and an excellent platform to benchmark, network and learn. Extensive research has shown a huge demand for this summit – the only international summit addressing the needs of the Intra Asian trade and transshipment community – if you are at all involved in the movement of goods – then this event is for you. TransLog Asia – 1st Intra Asia Summit will deliver real value to those involved in the business – buyers, sellers, government representatives, infrastructure owners, financiers, investors, bankers, legal counsel and consultants. Addressing the freight transport, logistics and SCM industries – this summit will be Asia’s only event that will cover the whole range of freight transportation and logistics – from government policy to customs, legal issues, port and terminal operations, green transportation, challenges to the key players to the latest trends in technology and applications. The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 57 2/26/08 6:02:29 PM 58 Events Spotlight Asia Pacific Rail 2008 – BioLogistics Asia 2008 Sheraton Grande Sukhumvit, Bangkok, Thailand March 11 -13 SunTec International Convention Centre, Singapore April 14-17 Advance your Asia Pacific rail business into the future The dynamics of pharma industry Asia Pacific Rail 2008 is focused on key issues revolving around the development of integrated seamless transportation networks and regional rail advancement; intelligent and sustainable transport system; rail financing/investment and development; infrastructure development and railway management. In the recent years, Asia is assuming a stronger position as the world’s drugs manufacturing factory and distributor. Yet each Asian market is unique and presents its own set of challenges. With enormous untapped opportunities for development and investment, the Asia Pacific rail industry is a multi-million dollar market for rail operators, suppliers, manufacturers and consultants. Asia Pacific Rail 2008 enables you to reach a targeted audience of key decision makers with influential puchasing power in the railway industry. The event is being organized by Terrapinn. For details contact: Customer Services Ya Ling Ng; Tel: +65 6322 2771 Email: yaling.ng@terrapinn. com SCLG Endorsed Events Calendar 6th Intermodal Africa 2008 Date: 21/02/08 to 22/02/2008 Location: Ghana Venue: Accra International Conference Centre Organised by: Transport Events BioLogistics Asia 2008 Date: 14/04/2008 to 17/04/2008 Location: Singapore SunTec International Convention Centre Organised by: Terrapinn 6th ASEAN Ports and Shipping 2008 Date: 05/06/2008 to 06/06/2008 Location: Vietnam Venue: Ho Chi Minh City Organised by: Transport Events With this in mind, Biologistics Asia 2008 will bring together logistics and supply chain professionals representing each segment of the drugs value chain. Key logistics and supply chain professionals from Eli Lilly, Merck Serono, Sanofi-Aventis, Merck Sharp & Dohme, Pfizer, Baxter, Abbott, SciGen, and Nicolas Piramal will shareinsightsintocriticallogistics and supply chain management issues, cold chain management, regulatory compliance, demand forecasting, inventory management, distribution and export strategies, reducing drug counterfeiting and more. The event is being organized by Terrapinn. For details contact: Elin Tan, Tel: (65) 6322 2700; Fax: (65) 6223 3554; Email - [email protected] or Stella Teo, Tel: (+65) 6322 2737; Fax: (+65) 6226 3264; Email [email protected] Second Annual SCMLogistics India 2008 Shangri La Hotel, New Delhi March 18-20 Manufacturer-driven conference Since its inception, SCMLogistics India has firmly established itself as the only manufacturer-driven conference in India that will bring together India’s top companies and global Fortune 500 companies across seven key vertical industries to discuss practical supply chain and logistics issues across all functional groups and capitalize on cross-industry learning opportunities, held during the height of India’s manufacturing boom. The supply chain and logistic sectors in India have always been highly fragmented, characterized by numerous small market players, making the implementation of synchronized industry best practices difficult. The escalating logistics and transportation costs resulting from India’s infrastructure inadequacies are eroding the cost-savings achieved from manufacturing in India. This conference will bring over 35 industry best practice case studies focusing on pertinent issues such as how leading manufacturers and solution providers can strengthen their position by enforcing new supply chain and logistics strategies. The event is organized by Terrapinn. For details contact: Clarise Goh, Tel: +65 6322 2778 Email: clarise. [email protected] The Supply Chain & Logistics Group | www.sclgme.org Link 23.indd 58 2/26/08 6:02:30 PM Link 23.indd 59 2/26/08 6:02:36 PM Link 23.indd 60 2/26/08 6:02:45 PM