The movers and shakers propelling the Middle East’s logistics and supply chain momentum Issue 210 December 2023 - January 2024SPONSORSHIP ENQUIRIES Shrief Ali Senior Commercial Manager T: +971 4 444 3598 M: +971 52 547 8093 E: shrief.ali@itp.com NOMINATION ENQUIRIES Karim Tolba Editor, Logistics Middle East T: +971 4 444 3714 E: karim.tolba@itp.com EVENT ENQUIRIES Dmitry Lazarenko Marketing & Events Manager T: +971 444 3659 E: dmitry.lazarenko@itp.com NOMINATIONS ARE NOW OPEN SCAN TO NOMINATE logisticsmiddleeast.com/awards #LOGMEAwards Wednesday 6 th March 2024 Dubai, UAE CHARTING A NEW HORIZON CELEBRATING EXCELLENCE IN LOGISTICS3 LOGISTICS MIDDLE EAST | DECEMBER 2023 - JANUARY 2024www.logisticsmiddleeast.com DECEMBER 2023 - JANUARY 2024| UPDATE IN THIS ISSUE DECEMBER 2023 - JANUARY 2024 Fuelled by a visionary ambition and a $5 billion investment, the Dubai Metro Blue Line is set to transform the city’s transport landscape, propelling urban development into an exhilarating future. FEATURE P14 CITY IN MOTION P22 POWER LIST LOGISTICS LEADERS Unveiling the industry’s movers and shakers who conquered challenges, achieved fi nancial milestones, formed strategic alliances, and undertook game-changing projects in 2023, massively expanding their market dominance. P12 Meet the Middle East’s logistics and supply chain trailblazers, steering through challenges, economic storms, and industry changes towards unprecedented growth and development.4 DECEMBER 2023 - JANUARY 2024 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com UPDATE |DECEMBER 2023 - JANUARY 2024 JOIN THE CONVERSATIONTo have your copy of delivered to your doorstep, subscribe by logging on to www.itp.com/subscriptions The upcoming issue of Logistics Middle East will unravel the key trends and emerging dynamics poised to shape the logistics and supply chain sectors in 2024 and beyond. Get in touch at karim.tolba@itp.com to be featured. ill cs in d. REGULARS P22P36 P38P42 [36] BUILDING A LEGACY Tristar Group CEO, Eugene Mayne, shares exclusive insights into the company’s progressive evolution over its 25-year journey, and how its dedication to sustainability has served as a cornerstone for its marked success. [38] TURNING TIDES Exploring the key predominant trends that shaped the global shipping landscape in 2023, and how they will cast their shadows into the unfolding 2024. [42] LEADERS IN LOGISTICS UAE 2023 The Middle East’s premier logistics and supply chain industry gathering concluded with distinction. Get the inside scoop on the event’s key highlights, along with exclusive insights from industry leaders, experts, and esteemed state offi cials.5 www.logisticsmiddleeast.com | EDITOR’S LETTER LOGISTICS MIDDLE EAST | DECEMBER 2023 - JANUARY 2024 As we bid farewell to 2023, it prompts us to pause and contemplate the profound challenges it presented to the global economic landscape. From infl ationary pressures to escalating interest rates and a substantial shift in consumers’ spending habits, these factors have signifi cantly infl uenced the logistics and supply chain sectors in the Middle East. Amidst this perfect storm of challenges, industry leaders and logistics titans not only weathered the turbulent tides, but also embarked on game-changing projects, achieved remarkable fi nancial feats, forged strong strategic alliances, and vastly expanded their operations, further asserting their irrefutable market dominance. In this issue, we spotlight the movers and shakers of the Middle East’s logistics and supply chain landscape, exploring how their endeavours have contributed to boosting the region’s economy and propelling the sector toward unprecedented growth and development. But that’s not all, our December edition delves into Dubai’s latest mega project, the Dubai Metro Blue Line, poised to transform the city’s public transport ecosystem and usher in a new era of urban connectivity. Our special report takes an in-depth look at the key trends that defi ned the global shipping landscape in 2023, and anticipates their infl uence on the industry in the coming year. Last but not least, we take a closer look at the Leaders in Logistics UAE 2023 Summit, the region’s premier annual trade gathering, highlighting the invaluable insights it provided into the UAE’s logistics and transport sectors, particularly on the emerging opportunities in the sustainability domain. We are excited to announce that nominations for the Logistics Middle East Awards 2024 edition are now open. Visit www.logisticsmiddleeast.com for more details and submit your entries for a chance to be the next winner. Enjoy the read! PO Box 500024, Dubai, UAE Tel: +971 4 444 3000 Web: www.itp.com Offices in Abu Dhabi, Dubai, London, Mumbai, Riyadh & Geneva ITP MEDIA GROUP CEO Ali Akawi Managing Director Alex Reeve EDITORIAL Group Editor Kate-Lynne Wolmarans Tel: + 971 4 444 3541 email: Kate.Wolmarans@itp.com Editor Karim Tolba Tel: + 971 4 444 3714 email: Karim.Tolba@itp.com Commercial Editor Angitha Pradeep Tel: + 971 4 444 3278 email: Angitha.Pradeep@itp.com ART Art Director Amjad Ayche Art Editor Tofiq Memon Contributing Designer Muhammed Nahas ADVERTISING Group Commercial Director Anup Nagpurkar Tel: + 971 4 444 3573 email: Anup.Nagpurkar@itp.com Senior Commercial Manager Shrief Ali Tel: + 971 4 444 3589 email: Shrief.Ali@itp.com PHOTOGRAPHY Chief Photographer Rajesh Raghav Videographer Muhammad Kaleem Senior Video Editor Liju Cheruvathur Multimedia Content Creator & Presenter Mina Vucic Social Media & Production Manager Andy Ruedas ITP LIVE General Manager Ahmad Bashour Tel: +971 4 4443549 email: ahmad.bashour@itp.com PRODUCTION Production Manager Denny Kollannoor Production Coordinator Manoj Mahadevan Senior Image Editor Emmalyn Robles DISTRIBUTION Circulation Executive Rajesh Pillai Distribution Coordinator Avinash Pereira MARKETING Director of Awards & Marketing Daniel Fewtrell 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. 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KARIM TOLBA EDITOR, LOGISTICS MIDDLE EAST THE POWER PLAYERSUPDATE 6 www.logisticsmiddleeast.comDECEMBER 2023 - JANUARY 2024 | LOGISTICS MIDDLE EAST Mawani, SAL to establish 54,000 sqm logistics park at Jeddah Islamic Port The park, set to be developed in compliance with the latest environmental-friendly international specifi cations, will contribute to developing the logistics services at Jeddah Islamic Port. The port has undergone extensive structural reforms, leading to major improvements in the operational effi ciency of the kingdom’s maritime sector and logistics services, according to international indicators. The latest venture aligns with Mawani’s eff orts to realise its strategic objectives by creating investment opportunities for the private sector and developing sustainable capacities and solutions to meet the needs of its partners. Furthermore, the latest undertaking is part of Mawani’s commitment to increasing the number of logistics centres for re-export to 30 centres by 2030, in line with the Saudi National Strategy for Transport and Logistics Services (NTLS) aims to bolster the kingdom’s position as a leading global logistics centre connecting three continents. Jeddah Islamic Port, the largest port along the Red Sea, claimed the top spot in transit trade, container operations, and cargo handling in the 2021 Container Ports Performance Index, issued by the World Bank. T he UAE-headquartered global provider of comprehensive logistics and transportation solutions, Aramex, inaugurated in November a new advanced courier operation facility in Muscat, Oman, in line with its strategy to further streamline the shipping process, from package arrival to fi nal delivery. Strategically positioned near Muscat International Airport, the newly inaugurated facility will serve as a central hub for Aramex’s operations, facilitating faster delivery times and more effi cient logistics management. The facility is equipped with the latest sorting and processing technology, ensuring precise and effi cient handling of every package. Moreover, the facility boasts advanced security measures, including non-stop CCTV surveillance, enhanced access control, and robust security protocols, off ering Aramex launches new courier operation hub in Oman customers peace of mind, by safeguarding their packages and information. As part of Aramex’s commitment to enhancing the overall customer experience, the facility will also serve as a customer service centre, off ering face-to-face assistance and swift support for customers’ inquiries. “Exemplifying our unwavering commitment to excellence and innovation in the logistics industry, this facility marks a signifi cant milestone in Aramex’s dedication to enhancing global shipping capabilities,” Aramex’s Vice President–GCC, Samer Marei said, adding that the new facility enables the company to provide more effi cient and reliable services, contributing to the growth of the sultanate’s logistics sector. In addition to its operational impact, the new facility is expected to support the local job market by creating new opportunities and fostering economic growth and community development. The facility will also contribute to extending the company’s international reach while upholding its commitment to sustainability and harnessing the power of technology. elevate the services provided at the port. The integrated logistics area will feature essential logistics services, and environmental systems, including smart warehouses, yards for storing and distributing goods, and a re-export zone, off ering regional sorting and distribution services, and added-value solutions. Aramex’s new hub in Oman Jeddah Islamic Port T he Saudi Ports Authority (Mawani) inked an agreement in November with Saudi Logistics Services Company (SAL) to establish a new logistics park at Jeddah Islamic Port. The 54,000 square metre logistics park aims to enhance sea and air connectivity andUPDATE 7 www.logisticsmiddleeast.comLOGISTICS MIDDLE EAST | DECEMBER 2023 - JANUARY 2024 T he Abu Dhabi-based facilitator of logistics, industry, and global trade, AD Ports Group, reported a 189% year-on-year (YOY) surge in revenue to $1.15 billion (AED4.24 billion) for the third quarter of 2023 (Q3). The group’s net profi ts surged by 20% YoY to $109.7 million (AED403 million), mirroring its robust EBITDA performance. The company attributed its strong fi nancial performance to the acquisitions of Noatum and Karachi Gateway Terminal. “AD Ports Group has achieved remarkable growth in Q3 2023, underpinned by our strategic M&A activities and our strong relationships with diverse local economies, looking beyond traditional terminal operations and toward collaborations,” AD Ports Group CEO and Managing Director, Capt. Mohamed Juma Al Shamisi said. AD Ports’ EBITDA saw a 28% YoY growth to $206 million (AED759 million) during the reported period. The Maritime and Shipping Cluster maintained its stronghold as the group’s biggest revenue driver, contributing 56% to the total revenues and 33% of the EBITDA in Q3 2023, driven by the contribution of Noatum Maritime and opportunistic vessel trading activities. S audi Arabia’s mega project, NEOM, inked a partnership agreement in October with Danish transport and logistics major, DSV, to establish a $10 billion logistics joint venture (JV). The JV is set to provide comprehensive supply chain management services, including the development and investment in transport and logistics assets, as well as the transportation and AD Ports Group registers 20% surge in Q3 net profi ts off shore vessels for nearly $200 million (AED735 million), in a bid to bolster its off shore and subsea capabilities in the Middle East and Southeast Asia by approximately 20%. All 10 vessels are expected to be delivered in Q4 2023, with fi nancial consolidation commencing from Q1 2024 onwards. Besides its impact on the logistics landscape, the collaboration is poised to catalyse Saudi Arabia’s economic growth, by fostering infrastructure development and creating over 20,000 job opportunities. “The projected demand in both construction and non-construction logistics will make NEOM one of the largest customers in the world, and this partnership allows NEOM to create value from its demand,” NEOM’s CEO, Nadhmi Al Nasr said, noting the partnership will leverage DSV’s expertise to drive innovation and sustainability throughout the logistics value chain. On his part, DSV Group CEO, Jens Bjørn Andersen, underscored the partnership’s signifi cance, emphasising NEOM’s status as one of the largest and most complex projects globally. In line with their mutual commitment to innovation, NEOM and DSV will allocate a portion of the JV’s revenues to develop ground-breaking technologies and promote sustainable, next-generation logistics solutions. Moreover, both partners unveiled plans to establish a dedicated innovation centre at NEOM. The JV marks a key milestone in NEOM’s strategy to revolutionise Saudi Arabia’s logistics sector, setting the stage for pioneering sustainable logistics solutions and supporting Vision 2030 objectives. NEOM, DSV to establish $10 billion logistics joint venture Despite a temporary negative Net Operating Cash Flow of $157 million (AED579 million), impacted by working capital fl uctuations and ongoing vessel trading activities, AD Ports anticipates a rebound in Q4 2023 with the associated cash collections. In early November, AD Ports acquired 10 delivery of goods and materials within NEOM. Under the agreement terms, NEOM will hold a 51% majority stake in the JV, with DSV taking up the remaining 49%. The partnership seeks to meet the projected demand for construction logistics within NEOM until 2031, and subsequently accommodate the anticipated growth in the non-construction logistics sector. Khalifa Port NEOMUPDATE 8 www.logisticsmiddleeast.comDECEMBER 2023 - JANUARY 2024 | LOGISTICS MIDDLE EAST FedEx introduces faster shipping to the UAE and Saudi Arabia and Africa Air Network, Nitin Tatiwala said, stressing that the transit time enhancement provides importers in the UAE and Saudi Arabia with a competitive advantage, by helping them build faster and more effi cient supply chain networks with businesses in Vietnam. “This facilitates trade and boosts the growth of businesses, especially SMEs, in the UAE and Saudi Arabia,” he added. Likewise, Saudi Arabia is one of Vietnam’s prominent economic collaborators in the Middle East, with bilateral trade between the two countries reaching $2.7 billion (SAR10 billion) in 2022, a 32% upturn compared to 2021. “The UAE and Saudi Arabia are strengthening trade ties with Vietnam, which is emerging as a pivotal global manufacturing hub,” FedEx’s Vice President—Middle East, Indian Subcontinent, FedEx F edEx Express (FedEx), the world’s largest express transportation company and subsidiary of FedEx Corp., launched a new fl ight service connecting Vietnam and the Middle East, as part of the company’s commitment to enhancing its intercontinental operations and off ering faster transit time. On 31 October, FedEx introduced four additional weekly fl ights from Ho Chi Minh City in Vietnam, utilising a dedicated B767 freighter. This expedited transit times by one business day for importers in the UAE and Saudi Arabia. The latest addition brings FedEx’s schedule to a total of nine weekly departures from Ho Chi Minh City, reducing the lead time for shipments arriving in the UAE and Saudi Arabia to two business days. Moreover, the latest frequency boost is set to help businesses in the UAE and Saudi Arabia capitalise on Vietnam’s growing manufacturing sector. The UAE stands as Vietnam’s largest Arab trading partner, with non-oil foreign trade between the two nations totalling nearly $7.9 billion (AED29 billion) in 2022, marking a 10.5% increase compared to the preceding year. Dubai records 1.8 million daily public transport commuters in 2023 D ubai witnessed a signifi cant uptick in public transportation ridership during the fi rst eight months of 2023, with more than 1.8 million daily commuters, on average, utilising its services. Approximately 450 million passengers used the city’s public transport between January to August 2023, marking a 12% upsurge compared to 401 million during the same period in 2022. Dubai Metro stood as the most popular mode of transportation, with 167 million riders, followed closely by taxis, serving 130 million users. Meanwhile, Public buses transported 111 million riders, followed by marine transport in fourth place, with 11 million passengers. The Dubai Tram provided services to 5.6 million riders, while shared transportation means, including e-hail, smart rentals, and bus- on-demand, collectively facilitated the travel of approximately 26 million passengers. The statistics were announced by Dubai’s Roads and Transport Authority (RTA), as part of the preparations for its 18th anniversary, and the 14th Public Transport Day initiative on 1 November. Dubai’s interconnected public transport system plays a critical role in facilitating residents’ mobility throughout the emirate, according to the RTA. The authority implemented a range of mega projects valued at nearly $40 billion (AED146 billion), including the world’s longest driverless metro system, the Dubai Metro, covering 89.3 kilometres; the 11-kilometre-long Dubai Tram; a 1,400-strong bus fl eet; and a comprehensive marine transport system, comprising traditional Abras, ferries, and water taxis. Dubai’s road network has undergone substantial expansions between 2006 and 2022, growing from 8,715 to 18,768 lane-kilometres, with the number of bridges and tunnels surging from 129 to 988 during the same period. Meanwhile, footbridges and subways, including Dubai Metro and Tram facilities, increased more than fourfold from 26 to 122. Dubai MetroUPDATE 9 www.logisticsmiddleeast.comLOGISTICS MIDDLE EAST | DECEMBER 2023 - JANUARY 2024 D ubai Taxi Corporation (DTC), a subsidiary of Dubai’s Roads and Transport Authority (RTA), launched a major privatisation initiative in November to raise approximately $300 million in capital through a share sale. Dubai reinstates privatisation drive with $300 million Taxi IPO period ending on 29 November for institutional investors and a day earlier for retail buyers. The shares are expected to start trading on 7 December. DTC’s initial public off ering (IPO) will reportedly see the company issue a fourth quarter (Q4) dividend of at least $19 million (AED71 million), scheduled for distribution in April 2024. Furthermore, DTC has reportedly committed to disbursing a minimum of 85% of its annual net profi ts through two dividend payments, starting in the 2024 fi scal year (FY24). The RTA is reportedly collaborating with Bank of America Corp., Citigroup Inc., and Emirates NBD Capital to facilitate the off ering, set to be listed on the Dubai stock exchange. The strategic move aligns with the RTA’s broader strategy to unlock further value from its assets, building on the successful $1 billion IPO of Salik, the emirate’s exclusive road-toll operator, in 2022. According to reports, another IPO for Dubai Parking could also be on the horizon, as part of the UAE’s privatisation agenda. According to Bloomberg, the Dubai Government will sell a 25% stake in DTC in the domestic listing, amounting to 624.75 million shares. The price range was set to be announced on 21 November, with the subscription Dubai Taxi T he Dubai-headquartered logistics major and global port operator, DP World, has cut carbon emissions from its UAE operations by nearly 50% in 2023. The company said it achieved this feat by accessing renewably produced power from the Dubai Electricity and Water Authority (DEWA), as part of its sustainability drive to achieve net-zero carbon emissions by 2050. “We are committed to supporting and progressing the global climate change agenda, by investing in zero carbon technology, implementing responsible business practices, and working with the right partners,” DP World’s Group Sustainability Offi cer, Maha AlQattan said. DEWA issued more than 200,000 International Renewable Energy Certifi cates (I-RECs) to DP World in 2023, ensuring that the electricity consumed is generated from renewable sources, with each equivalent to one megawatt-hour of electricity. “Renewable energy supply is part of our wider strategy to decarbonise our operations, and I am proud that over 60% of electricity consumed by DP World globally comes from renewable sources,” AlQattan added. I-RECs from DEWA are generated by the Mohammed bin Rashid Al Maktoum Solar ahead of the UAE’s country-wide target to reduce carbon emissions by 42% by 2030. DP World is already on its course to becoming carbon neutral by 2040 and net zero by 2050, in line with the UAE’s 2050 net zero initiative. DP World slashes carbon emissions by 50% in the UAE Park to power DP World’s UAE operations , which include Jebel Ali Port, Jebel Ali Free Zone (JAFZA) and Drydocks World, presently 100% powered by renewables. This transition positions DP World well DP WorldNext >