CSR MATTERS [43] RRRREEEEEPPPPOOOOORRRRRTTTTTT:: An ITP Media Group Publication MARC H 2020 / ISSUE 186 UPDATE [06] FEATURES [16] INTERVIEWS [22] COMMENT [28] SPECIAL REPORT [43] AnAn ITPITP MeMediadia Groupou Publication MARMARCHCH 2020200 / ISSUE 186 CCCCCCCCCOOOOOOOOOVVVVVVVVEEEEEEERRRRRR SSSSSSTTTTTTTTOOOOOORRRRRRYYYYYY IQ GETS YOU MOVING Fadi Amoudi, founder & CEO IQ Robotics , IQ Fulfillment & IQ Xpress talks Logistics Middle East through the role of his company in the technology for logistics field, and particularly e-fulfilment PORTS OF THE FUTURE [16] SAUDI COUNTRY FOCUS: A LOOK AT THE LOGISTICS AND SUPPLY CHAIN INDUSTRIES IN SAUDI ARABIA Download the free Logistics app and be the fi rst to read the latest issue on your mobile devices. news and analysis for supply chain management professionalsnnnnnneeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeewwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwsssssssssssssssssssss aaaaaaaaaaaaaaaaaaaaaaaaaannnnnnnnnndddddddddddd aaaaaaaaaannnnnnnnnnaaaaaaaaaalllllllyyyyyyyyyyyyyyssssssssssssssiiiiiiiiiiiiiisssssssssssss fffffffffffffffffooooooooooooorrrrrrrr sssssssssssssssssssssssssssuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuupppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppppllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyy cchh3LOGISTICS MIDDLE EAST | MARCH 2020www.logisticsmiddleeast.com MARCH 2020 | CONTENTS Fadi Amoudi, founder & CEO IQ Robotics , IQ Fulfillment & IQ Xpress talks Logistics Middle East through the role of his company in the technol- ogy for logistics field, and particularly e-fulfilment. McKinsey report ‘The future of auto- mated ports’ discusses the challenges and successes of port automation. Peter Richards, group CEO, Gulftainer describes the technological transfor- mation of ports. CO V E R IQ gets you moving FE A T U R E Ports of the future SPE CIAL REP O R T Making a ‘future port’ p10p16p17 CONTENTS MARCH 20204MARCH 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com CONTENTS | MARCH 2020 Most popular news stories on logistics- middleeast.com [1] Array Third-party logistics market forecast: Global Market Insights 9% growth forecast from 2020 to 2026 . [2] Red Sea Gateway Terminal invests SAR 1 billion in modern, advanced terminal equipment The terminal at the Jeddah Islamic Port is capable of accommodating ULCS of 20,000+ TEU capacity [3] Aramex 2019 revenue grows to AED 5.2 billion E-commerce spurs strong growth in Express shipment volumes while business transformation efforts continue to drive operational ef ciencies RE GU L A R S [20] SAUDI COUNTRY FOCUS Saudi Freight and Logistics Market - Growth, Trends, and Forecast [22-23] TRUEBELL’S NEW FULFILMENT CENTRE Bhushant J. Gandhi, divi- sional manager, Retail & Food Service, Truebell tells Logistics Middle East about its 25,000 square metre purpose-build facility [24-25] GOING NUTS Carlos Salas, Trade Com- missioner of Chile in Dubai discusses the huge successes the country is having ex- porting their nuts and dried fruit to the UAE [26-27] FORGING HER PATH Shereen Nassar, global director of Logistics Studies and the director of the M.Sc. Logistics and Supply Chain Management Programmes at Heriot-Watt University Dubai discusses her career path and success in the supply chain and logistics industry [28-29] HOW TO MAKE YOUR ONLINE SHOP- PING MORE SUSTAIN- ABLE By Stuart Milligan. course leader, MSc International Logistics and Supply Chain Management, University of South Wales Dubai [38-39] CORONAVIRUS AND ITS POTENTIAL IMPACT ON THE SHIP- PING INDUSTRY by Marco De Leo, partner (Dubai), and Enrico Ver- gani, leader of the Shipping and Transport Focus Team (Genoa) of BonelliErede [37-39] CITY ELECTRIC Adam Ridgway, founder and CEO of ONE MOTO - Electric Vehicles discusses the environmental impact of fuels, and whether elec- tric is the way to go [40] CASE STUDY BEUMER Group supplies ship loading system for urea fertilisers to Malaysia [43] SPECIAL REPORT CSR p8 p20 p48 JOIN THE CONVERSATION To have your copy of delivered to your doorstep, subscribe by logging on to www.itp.com/subscriptions Next month Logistics Middle East will be looking at the latest trends and developments insustainability in logistics as well as looking at how you build a successful brand. Get in touch to be featured!LOGISTICS MIDDLE EAST | DECEMBER 2019www.logisticsmiddleeast.com Published by and © 2020 ITP MEDIA GROUP FZ-LLC ED IT O R ’ S CO L U M N With a booming e-commerce market, and faster methods of fulfilment needed, motorbikes are becoming the machine of the moment. Here is a figure for you; the global online food delivery market is set to surge to US$200 billion by 2025, accord- ing to Forbes. The Middle East revenues from just the food delivery market are expected to grow at an annual growth rate of 13.6%, resulting in a market volume of US$2.8-billion by 2023, a massive number. With this huge growth comes the question of how to deliver these millions of plates of food every day. For many, motorbikes are an answer - but, with increased numbers of food delivery bikes comes increased pollution, adding 16,560 tonnes of CO2 per year, according to Adam Ridgeway of EV company OneMoto. That’s the equivalent to the CO2 produced by a 20,000 square foot warehouse or a 16 storey building (see page 37). So, what’s the answer? At the moment, it seems that electric vehicles and electric bikes are the answer. They dramatically reduce the amount of CO2 released into the atmosphere, but many still argue that the battery industry is equally as harmful to the environment. While experts agree the mining of rare earths, and materials for the manufacture of batteries is indeed harmful, they say that it is less harmful than the extraction and production of fossil fuels. This may be correct - no process is fool proof and in this rapidly melting world, ‘better’ has to stand. It seems the only real way to stop hurting the environment is to use pedal bikes, row your boats, or hang-glide off mountains to deliver packages, none of which is a reality in this hyper-populated online shopping planet. The Middle Eastern supply chain sector is booming as e-commerce gains popularity. For our cover story this month, Fadi Amoudi, founder & CEO IQ Robotics , IQ Fulfillment & IQ Xpress talks Lo- gistics Middle East through the role of his company in the technology for logistics field, and particularly e-fulfilment. GEORGINA FORD EDITOR GEORGINA.FORD@OS.ITP.COM PO Box 500024, Dubai, UAE Tel: +971 4 444 3000 Web: www.itp.com Offices in Abu Dhabi, Dubai, London & Mumbai ITP MEDIA GROUP CEO Ali Akawi Managing Directer Alex Reeve EDITORIAL Editor-at-large Georgina Ford Tel: +971 4 4443420 email: georgina.ford@os.itp.com ADVERTISING Sales Manager Sanjay Kathan Tel: + 971 4 444 3377 email: sanjay.kathan@itp.com ITP LIVE General Manager Ahmad Bashour Tel: +971 4 4443549 email: ahmad.bashour@itp.com PHOTOGRAPHY Senior Photographers Rajesh Raghav, Efraim Evidor, Adel Rashid Staff Photographers Aasiya Jagadeesh, Ajith Narendra Fritz Asuro, Yuliya Petrovich, Jessica Samson PRODUCTION & DISTRIBUTION Group Production & Distribution Director Kyle Smith Production Manager Basel Al Kassem Production Coordinator Mahendra Pawar Senior Image Editor Emmalyn Robles CIRCULATION Distribution & Warehouse Manager Praveen Nair Circulation Executive Loreta Regencia MARKETING Director of Awards & Marketing Daniel Fewtrell Events Manager Teri Dunstan ITP GROUP CEO Ali Akawi CFO Toby Jay Spencer-Davies Subscribe online at www.itp.com /subscriptions The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised 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 ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.UPDATE | MARCH 2020 6MARCH 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com The United Arab Emirates and the Kingdom of Saudi Arabia have strengthened their economic partnership to enhance the trade, diversify and create opportunities for the businesses and people in both the countries. Dr. Khaled Bin Sulaiman Al Khudairy, vice chairman and managing director of SFD said: “We are delighted to have col- laborated with ECI. Since our launch in the 1970s, SFD has fi- nanced programmes in different economic sectors including edu- cation, health, transportation, agriculture, energy and water. Among SFD’s main objectives are to participate in financing to uplift projects in develop- ing countries by granting them necessary loans, technical aids required for financing studies and institutional support as well as financing and guaranteeing the national non-oil exports. We believe our alliance with ECI will prove to be beneficial for the SME industries that will help to surpass the challenge of funds faced by SMEs.” Etihad Credit Insurance (ECI), the UAE Federal export credit company has partnered with the Saudi Fund for Devel- opment (SFD) for financing and providing credit insurance to protect non-oil exports of the UAE and Saudi Arabia. This col- laboration marks a favourable step in strengthening the alliance between both countries, one that will enhance the emirate’s global competitiveness and widen the potentialities and opportunities for local businesses as well as the export and trading community. The partnership between ECI and SFD was formalised in the presence of other senior officials from both the organisations. “ECI’s partnership with SFD is forming when the UAE-Saudi Arabia relations are strength- ening. The year 2020 has been announced as a ‘year of achieve- ment’ by both the countries, aiming to work together to LA N D + SE A + AIR + SU PPL Y CHAI N + WA R E H O U S E + MA TERIAL S HAN D L IN G UPDATE 03.2020 UAE and Saudi partner to empower their local businesses in cross-border trade The partnership between ECI and SFD was formalised in the presence of other senior officials from both the organisations UAE and Saudi build closer ties. become one of the top econo- mies in the world. ECI believes this partnership will boost the plans of both the economies. We are certain that the asso- ciation with SFD will prove to be beneficial for UAE-based businesses as they will have access to new market, potential business market intelligence supported with ECI’s bespoke trade credit solutions to diver- sify their businesses,” Massimo Falcioni, CEO of ECI, said. The key highlights of the al- liance between the two institu- tions include sharing of work streams that include insurance, reinsurance and collections co- operation; Commercial informa- tion and credit opinion sharing; cooperation in technical training programs; Trade promotions; SME programs, among others. The UAE and Saudi Arabia’s strong partnership is well evi- dent in their long-term agen- das—UAE’s Vision 2021 and Saudi Vision 2030—that aim to promote non-oil diversification and enhance economic growth and investment in the region. According to the UAE Ministry of Economy’s ‘Non-Oil Foreign Trade Relation Report between The United Arab Emirates and Saudi Arabia’, the UAE’s non- oil export and re-exports trade volume to Saudi Arabia stood at AED 79.6 billion in 2018 up from AED 53.9 billion in 2017. The report also stated that the UAE’s trade volume to Saudi Arabia has increased by 32% in 2018.MARCH 2020 | UPDATE 7LOGISTICS MIDDLE EAST | MARCH 2020www.logisticsmiddleeast.com Saudi Minister of Transport, H.E. Eng. Saleh bin Nasser Al-Jasser, commissions study to propel the Kingdom to the forefront of transport innovation globally The Ministry of Transport (MoT) in the Kingdom of Saudi Arabia, announced a contract agreement with Virgin Hyper- loop One (VHO), the world’s leading hyperloop company. Under the partnership, VHO will conduct a groundbreaking pre-feasibility study on the use of hyperloop technology for the transport of passengers and cargo, laying the groundwork for a network of hyperloop routes to be considered across Saudi Arabia. The study is the rst at a national level to be carried out anywhere in the world and will examine viable routes, expected demand, anticipated costs and explore the socio-economic ben- e ts of creating jobs and develop high-tech skills. The study, which will serve as a blueprint for future hyperloop projects, builds on the develop- ers long-standing relationship with the Kingdom, which has peaked when His Royal Highness Prince Mohammed bin Salman Abdulaziz Al Saud, Crown Prince of the Kingdom of Saudi Arabia, viewed Virgin Hyperloop One’s passenger pod during a visit to the United States. The announcement is the latest in a series of existing partner- ship in the Kingdom that include MiSK Foundation, the Economic Cities Authority, as well as King Abdullah University of Science and Technology (KAUST). His Excellency Eng. Saleh bin Nasser Al-Jasser, Minister of Transport said, “His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince of the Kingdom of Saudi Arabia has outlined the role of transport in shaping the future of the Kingdom’s economy within Vision 2030. As we en- ter a new decade, we intend to make rapid progress in building the infrastructure required to define mobility for the future, enabling the efficient movement of people and goods. With the transformative hyperloop tech- nology, Saudi Arabia will not only unlock unparalleled benefits for its people and the economy but will continue to lead the region into an era of prosperity.” The agreement forms the foun- dation for creating groundbreak- ing transportation infrastructure that will transform Saudi Arabia’s economy, enable the creation of jobs, and develop of further high-tech talent. His Excellency Sultan Ahmed bin Sulayem, group chairman and Chief Executive Officer of DP World and chairman of Virgin Hyperloop One, said, “Technol- ogy will continue playing a pivotal role in the progress and transfor- mation of Saudi Arabia’s economy – as part of this, Virgin Hyper- loop One and the technology that underpins it will help shape the future of the Kingdom. Together with the Ministry of Transport, we are confident that hyperloop technology will transform the movement of people and cargo in Saudi Arabia and help realise the ambitions of Vision 2030. The evolution of hyperloop offers an unparalleled opportunity to shape a connected Saudi Arabia, linking cities and nations in the region via a variety of routes. “The Virgin Hyperloop One system is real, rapid-speed, mass transportation. With the completion of more than 400 tests, VHO has positioned itself as the most viable option for in- vestors, governments and busi- nesses across the globe. Already, seventeen states in the United States are exploring potential hyperloop routes. In India, we recently reached a milestone for Virgin Hyperloop One, signing a landmark framework agreement to develop the Pune-Mumbai Hyperloop Project,” His Excel- lency added. Having already attracted major investors from the UAE, includ- ing VHO’s main investor, DP World, a hyperloop system would see passengers travel at speeds exceeding 1,000km/h, cutting travel time from the capital to Jeddah to 46 minutes, a journey from Riyadh to Qiddiyah would take only five minutes. While a trip from Jeddah to Neom could be completed in 40 minutes, and from Riyadh to Abu Dhabi in only 48 minutes. Speaking about the transfor- mation potential of hyperloop technology in the Kingdom, Jay Walder, Chief Executive Officer of Virgin Hyperloop One, said, “In line with Vision 2030, I am confident we will see the world’s first commercial hyperloop with- Kingdom of Saudi Arabia Leads with World’s First National Hyper- loop Study conducted in partnership with Virgin Hyperloop One in the decade. The Kingdom is on the forefront of this new era in transportation by being the first in the world to explore a national hyperloop route. The economic potential is enormous to connect passengers and cargo at unprecedented speeds with zero direct emissions. The system would be up to ten times more energy efficient than short haul flights and 50% more efficient than high-speed trains. In fact, a hyperloop in the region could be powered entirely by solar panels which cover the tube, making the technology hugely attractive to the sun-abundant Kingdom.” Harj Dhaliwal, managing di- rector for the Middle East and In- dia, Virgin Hyperloop One, noted that: “This new agreement with the Ministry of Transport in Saudi Arabia brings us one step closer to the realisation of our vision for a ‘Connected Saudi Arabia’ and a ‘Connected Gulf’. As the country’s leadership embraces new and innovative technologies VHO is uniquely positioned as a forward-thinking transpor- tation partner, engineered for the twenty-first century. VHO can connect major hubs in the country, and potentially the en- tire region, which supports the leadership’s renewed effort to propel the Kingdom’s economy to the forefront of innovation.” The Virgin Hyperloop.UPDATE | MARCH 2020 8MARCH 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com The International Air Transport As- sociation (IATA) and the International Post Corporation (IPC) have to- day signed a Memorandum of Understanding (MoU) to reinforce cooperation be- tween the two organisations. The aim for both IATA and IPC is to promote the devel- opment and expansion of safe, secure, accessible and high-quality airmail and air cargo services to help their respective members provide quality solutions aligned to consumer needs. “International e-commerce is growing at around 20% per year, leading to rapidly changing market conditions for airlines and posts. Ensuring customers get their packages on time while safety and security in postal air transport is maintained is the main priority for posts and air transport operators alike. Coop- eration across the supply chain is a must and our MoU with IPC is an important step toward Airlines and posts cooperate globally for a sustain- able and reliable cross-border airmail network strengthening our activity in this area,” said IATA’s director general and CEO, Alexandre de Juniac. “For more than 10 years, the cooperation between airlines and postal operators has enhanced processes and increased visibility of airmail transport. With this agreement, we want to further strengthen our ties and identify further opportunities for coop- eration and joint developments. Both of our sectors can win Third-party logistics market forecast: Global Market Insights The Third-Party Lo- gistics Market is set to grow from its cur- rent market value of more than US$1 trillion to over US$1.8 tril- lion by 2026; as reported in the latest study by Global Market Insights, Inc. Rapid globalisa- tion, increasing consumerism and expanding e-commerce sector are some of the key fac- tors driving third-party logis- tics market outlook. In a bid to cater to the heavy product demand from con- sumers, various companies are outsourcing their logistics ac- tivities to third-party suppliers. Third-party logistics services aid e-commerce businesses to ensure timely deliveries and handle is- sues of warehousing, tracking, shipping, packaging, delivery and inventory. Additionally, one of the prime advantages of out- sourcing logistics services from a third-party vendor is that it helps enterprises to focus on core busi- ness activities. Several logistics firms have stepped in the market to offer solutions & services, primarily to the e-commerce industry. For instance, Orio Logistics is offering third-party logistics services for the e-commerce industry, ensuring flexible, fast distribution, as well as efficient returns management. The 3PL market is set to almost double. Airlines and posts to cooperate to improve airmail reliability. from a reinforced cooperation in terms of competitiveness and quality of service. Ultimately, this agreement will benefit consum- ers through more reliable and faster delivery of cross-border mail and packets transported by air,” said Holger Winklbauer, CEO of IPC. IATA and IPC intend to work together on seven specific areas: 1. Improving the security, hando- ver, carriage, delivery and settle- ment of airmail between postal operators and air carriers. This includes e-commerce, economic and commercial matters. 2. Developing and maintaining industry standards and proce- dures as well as services and solutions for both physical flows and electronic data interchange relating to airmail. 3. Aligning existing services and solutions, along with developing new ones to ensure harmonised compatibility and efficient ap- plication of resources. 4. Finding technology-based standards and solutions for piece onboarding level track- ing in airmail. 5. Addressing volumetric chal- lenges, through initiatives such as Air Packet Box, and alloca- tion and booking procedures for airmail. 6. Developing regional onboard- ing initiatives and global cam- paigns on airmail process opti- misation and standardisation. 7. Improving the involvement of ground handlers and other industry stakeholders on mat- ters concerning airmail. IATA and IPC intend to work together on seven specific areas Nine per cent growth forecast from 2020 to 2026, e-commerce is a key driver P h o to by A n n ie S p ra tt o n U n sp la sh P h o to by M a rk u s S p is ke o n U n sp la shINDU LOGISTICS, JAFZA, United Arab Emirates,Telephone: +9714 - 8860141 Mob: +971-521043645, Fax: +9714-8860142, Email: info@indulogistics.com • COLD STORAGE • FROZEN STORAGE CHAMBERS • CHILLED STORAGE CHAMBERS • FOOD REPACKAGING SERVICES • BULK & RACK • TEMPERATURE CONTROL • CROSS DOCKING PREISHABLE LOGISTICS GENERAL WAREHOUSING PROJECT LOGISTICS CHEMICAL LOGISTICS FOOD CHEMICAL LOGISTICS E-COMMERCE SOLUTION 1 MILLION SQ FT OF WAREHOUSING SPACE CONTACT USNext >