< Previous20FEBRUARY 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com INTERVIEW | PORT MANAGEMENT What are the biggest challenges faced in port operations and how can technol- ogy ease those burdens? Well, being the gateway for trade, port plays a critical role in establishing the export com- petitiveness of a country. Having said that, ports across the globe are facing some critical operational challenges while delivering services. One of those challenges is how to bring the containers from the port to the container yard in the most efficient manner. Port management must seriously look into reducing the turnaround time of the ships as well as maximising the container terminal throughput. Swiftly operated container terminals always take the operational efficiency of a port several notches higher. Technology can play an important role in enhancing the port efficiency. New-age technology tools like the Internet of Things (IoT), big data, blockchain technology, cloud- based services, and connected platforms can go a long way towards overhauling the conventional operations of the port. Customers often order shipments ‘just-in-time’ as they want to keep their inventory holding cost on the lower side. This leads to further pressure on the supply chain. Thanks to advanced track and trace facility, our customers get updates on the arrival time of the vessel at the parts, and plan accordingly to make their cargo immediately available in their respective markets. Now, in such a competitive market scenario, top-notch infrastructure needs to be developed in and around the ports to implement the ‘just-in-time’ concept, and faster vessel turnarounds. In the Middle East and many other countries, as we collaborate with all the leading port operators, we have access to the latest and advanced equipment which allows us to obtain the container within hours from berth- ing of the vessel. Efficient port operators always help the shipping industry in servicing its client properly. With bigger ships, comes more cargo - mega container ships have cut the number of ships coming to port, but also increased the amount of containers to be Rene Wernli regional CEO, Middle East & Africa, ECU Worldwide Major ports are now geared to receive mega- ships. FACING PORT MANAGEMENT CHALLENGES21LOGISTICS MIDDLE EAST | FEBRUARY 2020www.logisticsmiddleeast.com PORT MANAGEMENT | INTERVIEW ECU WORLDWIDE ECU Worldwide is a major player and a market leader in the container shipping industry. We offer the latest technology and tools to our customers but at the same time also rely on the shipping line and port operators’ performances. We are passionately working towards offering the best solutions in collaboration with our partners to serve our customers. - Source: Rene Wernli regional CEO, Middle East & Africa, ECU Worldwide Port management must seriously look into reducing the turnaround time of the ships as well as maxim- ising the container ter- minal throughput.” RENE WERNLI REGIONAL CEO, MIDDLE EAST & AFRICA, ECU WORLDWIDE offloaded, how is automation assisting ports with container handling? All the major ports are now geared up to handle mega ships. Some of the ports have been voted ‘best seaports’ due to their efficiency. Banking on the latest technology and automation, they are now handling ultra large container vessels (ULCV) with capacities exceeding 18,000 TEU. Automation has transformed the container handling mechanism in ports in a big way. It has brought in con- sistency in container handling by reducing human errors and delays, apart from reducing carbon emissions inside the port, and minimising accidents and downtime. For in- stance, automated crane system with higher adaptability and lower human intervention rates increase the efficiency manifold in container terminals. Smart sensors can also be widely used for predicting maintenance schedules to avoid annual inspections of the automated equipment. How can the processing of trucks in and out of ports be made more efficient with technology? Infrastructure development has to be rolled out inside and outside of the ports. A port with efficient infrastructure can not function to its potential and faces bottlenecks and congestions if its surrounding infrastructure facilities are under-developed. Overall port infrastructure takes into account both its internal and external aspects. The technol- ogy and process flows must support each other to leverage overall port infrastructure. Port operators are aware of that aspect and they always look for viable options to ensure efficient movement of trucks in the port area. To give you some real life examples, technologies like a GPS-based traffic-monitoring system, traffic-monitoring sensors along major port roads or truck appointment systems can prove effective in decongesting traffic. Some major ports in the world have implemented such technologies. As truck movements inside the ports are restricted, fixed processes must be adhered to ensure speed and safety while the loading and unloading of the containers in the truck. In this case, strategic implementation of technology facili- tates a very disciplined and automated truck movement to ensure port KPIs in relation to safety, speed, efficiency and cost are met and constantly improved. Customers can now track their containers from end-to-end, which is driving more accountability for shippers, how is increased transparency in the customer-shipper relationship due to technologi- cal implementations/developments changing and challenging the industry? With the improved visibility thanks to numerous online tools and interfaces, customers are now able to plan cargo shipment more accurately and optimise their supply chain more efficiently. It however, makes it more challenging for the industry to ensure that all processes related to cargo handling are carried out immaculately as any delay or bot- tleneck is visible to the customers. Therefore, the priority of shipping and transportation industry has to be on enhancing performance yardsticks to service the customers well. This industry, in fact, acts as an integral part of the transporta- tion and supply chain. Rene Wernli regional CEO, Middle East & Africa, ECU Worldwide22FEBRUARY 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com In recent years, the food industry has faced a number of exciting and dramatic changes to its supply chain, fuelled mostly by shifting con- sumer demands. Consumers are increasingly focused on the food retailer’s transparency which includes foods that generally require temperature-controlled storage through the supply chain. From the deployment of automation and robotics in warehouses to innovative ways to manage energy, ideas that were once confined to brainstorming sessions and office whiteboards are now getting the significant investments they need to be deployed throughout the supply chain. So, what innovations and trends are poised to have the greatest impact on our industry in the next three to five years? Digital twin - where data becomes insight Cold chain is already greatly benefitting from the power of data analytics, artificial intelligence and deep learning, which quickly and accurately collects data from multiple sources and then converts that into actionable knowledge. Taking this a step further, leveraging the Internet of Things revolution, one can get a complete view of operations and the extended logistics chain, enabling more precise control over the environment. For example, if your whole supply chain has a digital twin, we can now ensure and maintain a level of temperature control and efficiency that is unmatched in the industry. The user can analyse shipment conditions during transportation of perishable goods as well as any other commodities that Top Three Trends facing the cold chain industry Got something to say? If you have any industry comments to make please e-mail: georgina.ford@os.itp.com OPINION | QAFILA By Atif Rafi q, co-founder at Qafi la COMMENT are sensitive to temperature, humidity and other environ- mental conditions. While ocean voyages are fairly stable (when reefer containers are used), the other legs of the supply chain journey (the farm to the ves- sels, and once the commodity is off-loaded from the vessel to the importer’s warehouse or even the distributor) are the most vulnerable. The “Amazon” effect The market continues to de- mand faster velocity, better service and greater efficien- cy. Leading supply chain pro- viders must deploy systems that can provide their clients with product visibility and AS THE SAYING GOES, A CHAIN IS ONLY AS STRONG AS ITS WEAKEST LINK, AND THIS IS ESPECIALLY APPROPRIATE IN THE SUPPLY CHAIN INDUSTRY.” ATIF RAFIQ, CO-FOUNDER AT QAFILA23LOGISTICS MIDDLE EAST | FEBRUARY 2020www.logisticsmiddleeast.com OPINION | QAFILA control in near real time. As the saying goes, a chain is only as strong as its weakest link, and this is especially ap- propriate in the supply chain industry. We must keep pre- cise delivery windows within the chain: from our ocean carriers, freight forwarder, trucking partners, both in- bound and outbound, and ensure we leave a customer’s product in the same condi- tion we received it. Ecommerce revolutions drive innovation upstream Regional players like Car- refour, Spinneys and Union Co-operative have hopped on the e-commerce band- wagon with Souq Supermar- ket - https://supermarket. souq.com/ae-en/ and some have established their own delivery channels especial- ly in the grocery store and convenience store category. This trend signals a change in consumer preference which has created a ripple effect in the retail supply chain. For 3PLS (third party lo- gistics services), many are experiencing delivery re- quirements within hours instead of days or weeks. This had led to a rise in retail standards around velocity and on-time movement of goods particularly in perishables where time is of the es- sence. 3PLS are also adapting their service offering whether its repacking larger cartons into smaller packages, offering promotional labelling and etc. As for warehouse and fulfilment design - proliferation in food and beverage for fresh food, gluten-free and farm- to-table preferences cascade into warehouse operations. As the number of SKU’s increases, it affects the profile of orders and increases the number of lines. Greater preci- sion is required in how the capacity inside the warehouse is used to manage an expanding product line. Those fulfilment needs to translate into new require- ments for technology in terms of visibility and traceability to handle the complexities. Change is coming to supply chain. Old freight forwarders who have not evolved and still prefer doing things the old way will have to step aside and let themselves be disrupted by new players who understand the technology that brings speed and visibility to help develop Service Level Agree- ment and the ability to serve customers faster and better. The cold chain industry is benefi tting hugely from technological breakthroughs. P h o to by B ry so n H a m m e r o n U n sp la sh24FEBRUARY 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com When battlefield electrification is first men- tioned it perhaps conjures unrealistic visions of fully electrified ships, tanks and aircraft, built as now but without combustion engines, operating in combat environments. But, the more realisable and often over- looked benefit of electrification comes with the strategic change to battlefield support assets, coupled with a focus on logistics support and the military supply chain. Fossil fuel consumption comes at significant cost Military conflicts are becoming increasingly reliant on logistics to underpin the huge undertakings of mainte- nance and shipping personnel, equipment and supporting resources to often remote, difficult to reach locations and then trying to sustain them. An effective logistics strategy can be the difference be- tween the success and failure of an entire military cam- paign and fossil fuels play a key role—the US Department of Defense, for example, is the largest consumer of fossil fuels in the world. The US Army can use 600,000 gallons of fuel a day to run an armoured division. The M1 Abrams tank gets about 0.6mpg and even a cargo vehicle such as the M-1070 semi- trailer, which hauls fuel, delivers approximately 1.2mpg. For context, in the Afghanistan war, Pentagon officials Electric Battlefields: Powering A new generation of logistics support Got something to say? If you have any industry comments to make please e-mail: shaun.ebelthite@itp.com OPINION | JEFF PIKE Jeff Pike, head of Aerospace & Defence Strategic Programs & Initiatives at IFS, looks at greening the battlefi eld in the modern era COMMENT told the House Appropria- tions Defense Subcommit- tee a gallon of fuel cost the military about US$400 by the time it arrived in the remote locations where US troops were operating. Balancing vulnerability with efficiency usually means a bloated logistics footprint Simply transporting fossil fuel to the forward operating base requires a huge convoy of military vehicles. Moreover, fuel stored in remote bases is housed in vast flexi-tanks, difficult to hide and incredibly vulner- able to aerial attack. Then the convoy and broader logistics support ma- chine itself needs security, feeding, accommodation and support, thus perpetuating the need for more person- nel who, in turn, need sup- porting themselves. All this comes at a human cost. US Army Environmental Policy Institute figures indi- cate the casualty factor for fuel resupplies in Afghani- stan was 0.042, which is 0.042 casualties for every fuel-related resupply con- voy—or almost one casualty for every 24 fuel resupply convoys. Electrification is more than green: It’s reducing the logistics footprint Switching to electric could deliver strategic battlefield advantages—limiting main- tenance overhead and more importantly offering a direct benefit to saving lives. QinetiQ, a global organi- sation of scientists and en- gineers at the forefront of research and commentary on the use of electric propulsion in defence, has produced in- depth research on the state of military electrification. But, the benefits of electri- fication are more than ‘going green’—they can deliver huge logistical advantages Short term opportunity lies in secondary support Battery life quickly becomes a limiting factor when as- sessing battlefield electri- fication in terms of entire vehicles. In the short term, it’s more likely we’ll see—and are starting to see—point elec- trification of support and secondary systems as the ini- tial military focus. Forward operating bases consume vast volumes of electricity, often 1000s of kWh a day, but this demand is currently met almost entirely by generators fuelled with diesel. Take one use case from the US Army in Afghanistan, called ‘Operation Nimroz’. The base installation man- dated 13 generators, but many were running well below capacity. The Army changed to two generators and two “hy- brid sites” which included a trailer with a generator, battery pack and solar panel, to provide power for specific missions. Total fuel savings for the project came to about 1,600 MILITARY CONFLICTS ARE BECOMING INCREASINGLY RELIANT ON LOGISTICS TO UNDERPIN THE HUGE UNDERTAKINGS OF MAINTENANCE AND SHIPPING PERSONNEL, EQUIPMENT AND SUPPORTING RESOURCES TO OFTEN REMOTE, DIFFICULT TO REACH LOCATIONS AND THEN TRYING TO SUSTAIN THEM.” JEFF PIKE, HEAD OF AEROSPACE & DEFENCE STRATEGIC PROGRAMMES & INITIATIVES AT IFS25LOGISTICS MIDDLE EAST | FEBRUARY 2020www.logisticsmiddleeast.com OPINION | JEFF PIKE gallons a week and 30-man hours per week were saved by not needing to refuel, with a further 20 hours of mainte- nance saved per week. This meant engineers could focus their efforts on some of the more pressing maintenance concerns. Supply chain and asset management software must enable change There are significant electric advantages—but for these benefits to be realised now, systematic change of supply chain and logistics processes is required. Supporting a solar panel farm in a deployed base is not the same as support- ing the fossil fuel generator that preceded it, even if the maintenance objectives are the same. As such it’s key that military forces rely on enterprise asset management solutions with built-in adapt- ability for new assets and logistics principles—from procurement of the asset, through to frontline maintenance and support. Nobody wants the electrification of the battlefield to become an IS project overhead, so choose wisely! Electrification of support is realisable now As the QinetiQ report explains, the success of electrical technologies in defence will depend on the quality of the infrastructure behind them—not just charging points but the multi-facetted supply chain, the IS processes and equipment visibility and much more. But, electrification of support, certainly secondary support, can deliver strategic opera- tional advantages programme efficiencies and safety being paramount to any modern fighting force and reduce the fossil fuel supply hydra! Electrification is hitting the battlefield and things are chang- ing now—and will continue to do so for good strategic reasons. Jeff Pike, head of Aerospace & Defence Strategic Programmes & Initiatives at IFSNEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS LOGISTICSMIDDLEEAST.COM27LOGISTICS MIDDLE EAST | FEBRUARY 2020www.logisticsmiddleeast.com TRISTAR In 2018, global energy demand rose by nearly three per cent, which is the fastest growth rate since 2010. Additionally, sea levels have risen by three inches from 1990 to 2017. Climate change is increasingly becoming a reality. Given this outlook, logistics providers in the region and globally are renewing their focus on environmen- tal, social and governance principles. It is no longer a luxury confined to large firms, but rather, a licence to operate in the logistics industry. In fact, according to Cerasis, approximately 64.2 per cent of supply chain entities report implementing sustainable solutions within the last two years. ESG principles are important for logistics firms as their op- erations tend to span across several markets and can therefore have a wider impact. Embedding these principles in business operations inevitably leads to sustainable markets and better outcomes for societies. Dubai and the other Emirates of the UAE are leading the way and have introduced several environmentally friendly strategies and initiatives as they transform towards a green economy. For example, Dubai has begun to green its fleet of govern- ment vehicles by purchasing over 4,000 electric and hybrid cars to replace gas and diesel vehicles. In 2016, the Dubai Wa- ter and Electricity Authority (DEWA) established the US$27 billion Dubai Green Fund to stimulate investment in clean energy and other green projects by providing seed financing, a de-risking facility, and facilitating crowdfunding. Sustainability is a fast-growing area of interest for private businesses in Dubai as well. In July, the Dubai Financial Market (DFM) launched the Sustainability Strategic Plan 2025 – a blueprint to promote ESG issues among its listed companies, with the intention of becoming the region’s leading sustain- able financial market. This follows global reports and trends that point to the fact that companies with strong ESG values perform better financially, avoid bankruptcy risks and generate alpha. In fact, a Bank of America Merrill Lynch Report states that a whopping 90 per cent of bankruptcies in the S&P 500 be- tween 2005 and 2015 could have been avoided by screening out companies with below-average environmental and social scores five years prior. Given this backdrop, I firmly believe that logistics operators in the Middle East need to re-direct their focus on conducting business in a responsible manner. As a significant sector of the regional economy, it is up to our industry to examine the areas in which we can have an impact and therefore lead the way in protecting the environment, reducing pollution, and serving the community all the while ensuring good corporate govern- ance. The logistics industry is constantly challenged to control and reduce carbon emissions while transporting products be it by road, sea or air. Regulations also enable and ensure that businesses consider the impact of their operations on the environment; for exam- ple, IMO 2020, which comes into effect next year, has made it mandatory for shipping vessels to adopt low sulphur fuel across the globe. This will continue to urge logistics provid- ers to adapt and create innovative solutions to address global problems facing us today. Some of the initiatives companies could implement to reduce their carbon footprint could be to reduce their dependence on fossil fuel generated electricity through waste water treat- ment, using EURO IV technology, using bio-diesel, integrat- ing hybrid vehicles into the fleet, using green buildings and leveraging solar energy. Another aspect that needs attention in the logistics indus- try is the safety of drivers and sailors. Preserving the health and safety of logistics staff is of paramount importance when establishing an ESG framework, as it leads to good corporate governance. Technology today has advanced and there are various devices that can auto-detect fatigue and distraction thereby preventing accidents on the road for truck drivers. Logistics companies have an obligation to recognise and promote the need for environmental stability and acknowl- edge the social impact of our business in the communities in which we operate. Additionally, it is important to be transparent with stakeholders in order to earn their trust and operate in a responsible manner. The growing importance of ESG in the logistics industry BUILDING A BUSINESS FOR PURPOSE Eugene Mayne, founder and CEO of Tristar Group By Eugene Mayne, founder and CEO of Tristar GroupHANDLING CARGO | SPECIAL REPORT 29LOGISTICS MIDDLE EAST | JANUARY 2020www.logisticsmiddleeast.com WAREHOUSE TECHNOLOGY SPECIAL REPORT: Embracing the technology revolution in warehousing [31] INFOGRAPHIC[32] COMMENT: Swisslog [34] COMMENT How smart tech can trans- form warehousing [36] FEATURE the future of warehousingNext >