Kami Viswanathan’s vision is driving FedEx to new heights through tech-powered logistics In p a rt n e rs h ip w it h F e d E x Smarter, Faster, Better AN ITP MEDIA GROUP PUBLICATION AUGUST 2024 • ISSUE 217 ON LOG_Aug2024_00_Cover_13340453.indd 1LOG_Aug2024_00_Cover_13340453.indd 125/07/2024 17:1925/07/2024 17:193www.logis tic smiddleeas t .comLOGISTICS MIDDLE EAST | AUGUST 2024 AUGUST 2024 | CONTENTS P36P34 IN THIS ISSUE We look at how strategic investments and bold policies are propelling Dubai and Abu Dhabi to the forefront of global maritime trade, changing the dynamics of shipping around the world. REPORT P12 FROM OIL RIGS TO OCEAN ROUTES INTERVIEW OPINION LEADING THE CHARGE IN SUSTAINABLE PACKAGING NAVIGATING GLOBAL SUPPLY CHAIN DISRUPTION Schoeller Allibert is pioneering eco- friendly solutions in the packaging industry, driven by the goal of boosting operational effi ciency under the leadership of Andy Kelly in the Middle East. We explore how the construction industry can navigate the challenges posed by Bab al-Mandab’s maritime instability and ensure project continuity amidst challenging times for all involved. We explore how Kami Viswanathan, President of FedEx Middle East, Indian Subcontinent, and Africa, is driving FedEx to new heights through tech-powered logistics. P20 LOG_Aug2024_3-4_Contents_13345846.indd 3LOG_Aug2024_3-4_Contents_13345846.indd 324/07/2024 11:3424/07/2024 11:344www.logis tic smiddleeas t .comAUGUST 2024 | LOGISTICS MIDDLE EAST CONTENTS | AUGUST 2024 JOIN THE CONVERSATION The upcoming edition of Logistics Middle East will shine a spotlight on the visionaries leading the growth of supply chain and logistics in Saudi Arabia. Contact ryan.harmon@itp.com to be featured. www.w logilogilogisstic smidd T H E POR T S EDI T ION P16 P18 P38 P44 [16] REVOLUTIONISING PORTS: THE CIRCULAR ECONOMY ADVANTAGE We explore the example set by European ports in adopting circular practices and how this can drive transformation in Middle Eastern maritime ports. [18] GREENER MARINE OPERATIONS WILL REQUIRE LEANER CREWS AND SMALLER SHIPS In an exclusive interview with Max Hartvigsen and Oliver Hibbert of Ocean Infi nity, we delve into the company’s approach to revolutionising green shipping operations. [26] TOP 5 MIDDLE EAST TECH STARTUPS TRANSFORMING PORT OPERATIONS Discover how innovative tech startups in the Middle East are driving effi ciency and setting new standards in port operations. [30] GLOBAL PORTS GRAPPLE WITH CONGESTION: A WAKE-UP CALL FOR SUPPLY CHAINS? We explore how congestion and capacity issues at major ports around the globe are causing signifi cant disruptions across the supply chain. [38] HOW SUEZ AND PANAMA DISRUPTIONS ARE CHANGING GLOBAL SHIPPING Geopolitical disruptions and climate challenges are forcing the shipping industry to reroute and innovate, with the need for greater resilience being a key driver of change. [44] PORTS OF POWER: HOW MIDDLE EAST’S MARITIME HUBS ARE STEERING ECONOMIC GROWTH Strategic port operations in the Middle East are attracting investment, creating jobs, and transforming local industries. LOG_Aug2024_3-4_Contents_13345846.indd 4LOG_Aug2024_3-4_Contents_13345846.indd 424/07/2024 11:3424/07/2024 11:345www.logis tic smiddleeas t .comLOGISTICS MIDDLE EAST | AUGUST 2024 | EDITOR’S LETTER Welcome to the latest edition of Logistics Middle East, dedicated to the world of ports and maritime logistics. As the heart of global trade, ports play a crucial role in ensuring the fl ow of goods, driving economic growth, and fostering international connections. In this special ports edition, we look at the innovations, challenges, and transformations shaping the future of port operations in the Middle East and beyond. But fi rst, to our cover story. FedEx is one of the world’s leading logistics companies, and we sat down to talk to Kami Viswanathan, President of FedEx Middle East, Indian Subcontinent, and Africa, as she propels FedEx to new heights with her vision of tech-powered logistics. Our cover story explores how Viswanathan’s leadership and the integration of cutting-edge technologies such as AI, IoT, and blockchain are changing the logistics landscape in the Middle East. In this edition, we explore the revolution taking place in port operations through the lens of the circular economy. Embracing these principles is not just a trend, but a necessity for enhancing effi ciency and sustainability. Ports are increasingly adopting eco-friendly practices that reduce waste, conserve resources, and promote long- term resilience, setting new standards for the industry. The drive towards greener marine operations is another critical theme we address. The shift towards leaner crews and smaller ships signifi es a signifi cant change in how we approach maritime logistics. These adaptations are essential for meeting stringent environmental regulations and responding to evolving market demands, ultimately contributing to a more sustainable future for our oceans. Moreover, the Middle East continues to rise as a centre for maritime activity. Our region’s strategic location and substantial investments in infrastructure and technology are positioning Middle Eastern cities as pivotal players in the global shipping industry. However, the maritime industry is not without its challenges. The global pandemic and geopolitical tensions have spotlighted the fragility of supply chains, and companies must adapt to thrive in ever-changing circumstances. I hope this edition off ers new insights and strategies for maximising the potential of our ports and navigating the challenges ahead. Thank you for your continued support, and happy reading! RYAN HARMON EDITO R , LOG ISTIC S M I DDLE E A ST THE PORTS EDITION 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 Martin Chambers Head of Digital Media Thomas Shambler EDITORIAL Editor Ryan Harmon Tel: + 971 4 444 3521 Email: Ryan.Harmon@itp.com ART Art Director Amjad Ayche Art Editor Tofiq Memon ADVERTISING Chief Commercial Offi cer Sally Whittam Tel: + 971 4 444 3348 Email: Sally.Whittam@itp.com Senior Commercial Manager Shrief Ali Tel: + 971 4 444 3589 Email: Shrief.Ali@itp.com PHOTOGRAPHY Senior Video Editor Liju Cheruvathur MARKETING Senior Events & Marketing Manager Ellie Ashton Senior Events Manager Karishma Vithalani Events & Marketing Manager Olivia Keen Smith Events & Marketing Manager Dmitry Lazarenko Associate Events Manager Kate Galaktionova Events Administrative Assistant Aronn Pureza PRODUCTION Production Manager Balasubramanian P DISTRIBUTION Circulation Executive Rajesh Pillai Distribution Coordinator Avinash Pereira ITP GROUP CEO Ali Akawi CFO Toby Jay Spencer-Davies 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. PUBLISHED BY AND © 2024 ITP MEDIA GROUP FZ-LLC. LOG_Aug2024_5_Editor Letter_13334169.indd 5LOG_Aug2024_5_Editor Letter_13334169.indd 525/07/2024 17:3325/07/2024 17:336www.logis tic smiddleeas t .comAUGUST 2024 | LOGISTICS MIDDLE EAST UPDATE | AUGUST 2024 Egypt and Italy unite for green transport and rail revolution El Wazir, emphasised the strategic importance of these agreements in supporting the country’s development goals, promoting sustainable transportation, and boosting tourism. The Egyptian National Railways (ENR) has partnered with the Italian company Arsenale to launch the Nile Guardian Train, a luxury tourist service. The 15-carriage train will provide a unique travel experience between Cairo, Luxor, and Aswan, highlighting Egypt’s cultural heritage and tourist attractions. The collaboration with Italian companies brings technical expertise and investment, which are crucial for advancing Egypt’s infrastructure and green initiatives. In another signifi cant agreement, ENR and Italian company MERMEC, in collaboration with El Hazek Construction, will implement modern signalling systems on the Ferdan-Bir al-AbdBalouza-East Port Said railway line. The project is crucial for Sinai’s broader development and aims to establish a logistical corridor connecting it to the west of the Suez Canal. The modernisation of signalling and communication systems is expected to enhance safety, ensure smooth train operations, and reduce accidents at level crossings. The project also includes training programmes for Egyptian personnel to ensure the successful operation and maintenance of the new technology, driving rail development in the country. Adyen, a global leader in fi nancial technology, has announced a strategic partnership with Noon, a leading e-commerce platform in the UAE, Saudi Arabia, and Egypt. This collaboration aims to accelerate the growth of the region’s digital economy by enhancing payment solutions for merchants and customers alike. Founded in 2017, Noon has evolved into a comprehensive digital ecosystem, supporting local shoppers and businesses with various products and services. To manage its rapid expansion, Noon developed Noon Payments, an in-house payment infrastructure. Now, with Adyen’s cutting-edge technology, Noon is poised to elevate its payment capabilities further. Adyen’s platform off ers a suite of services, including point-of-sale solutions, advanced 3D secure and risk confi gurations, and detailed shopper insights. This integration allows Adyen and Noon partner to enhance UAE e-commerce payments Noon to innovate rapidly, providing seamless and secure payment experiences crucial for the Middle East’s e-commerce landscape. Sander Maertens, Head of Middle East at Adyen, said the partnership has the potential to drive e-commerce to new heights in the region. He stated, “By combining our global expertise with Noon’s deep local market knowledge, we expect to drive substantial growth and innovation in the UAE’s e-commerce sector.” The partnership with Adyen will enhance Noon’s customer experience by streamlining payment processes, reducing fraud, and providing valuable insights into consumer behaviour. This will empower businesses to tailor their off erings, creating a more engaging and personalised shopping environment. Mosam Gadia, SVP of Payments at Noon, stated, “Since our inception, Noon has developed robust native payment capabilities to deliver exceptional payment experiences in the Middle East. Adyen’s global expertise in digital payments is unmatched, and we are excited to enhance the experience for our merchants and customers.” By integrating Adyen’s advanced payment solutions, Noon is set to transform the e-commerce landscape in the UAE, fostering a more secure, effi cient, and personalised shopping experience. A key MoU was signed between Egypt’s Ministry of Transport and Italy’s export credit agency, SACE. The partnership will support environmentally friendly projects, aligning with the country’s emphasis on creating green, sustainable transport networks. The initiatives include expanding the metro system, introducing high-speed electric trains, and developing light rail and monorail services. Egypt’s Minister of Transport, Kamel Innovative payment solutions will boost the region’s digital economy Egypt has signed pivotal agreements with Italy to modernise railways and promote sustainable transport Egypt’s Ministry of Transport has signed several pivotal agreements and memoranda of understanding with Italian counterparts to enhance its transportation infrastructure and promote sustainable development. These agreements, announced at the Egypt-EU Investment Conference, aim to modernise railway systems and bolster green transport initiatives in line with Egypt’s Vision 2030. LOG_Aug2024_6-9_News_13344040.indd 6LOG_Aug2024_6-9_News_13344040.indd 624/07/2024 11:3624/07/2024 11:367www.logis tic smiddleeas t .comLOGISTICS MIDDLE EAST | AUGUST 2024 AUGUST 2024 | UPDATE 7X, formerly known as Emirates Post Group, has unveiled ambitious expansion plans as part of its new strategic direction, which was introduced earlier this year. The logistics giant aims to bolster its diverse portfolio and enhance its domestic and global reach. The group also highlighted the robust capabilities and expansive reach of its subsidiaries: Emirates Post, EMX, EDC, and FINTX. Emirates Post, the postal arm of 7X and the UAE’s offi cial postal services provider, plans to optimise its retail network with new strategically located centres. The goal is to ensure customers are never more than a fi ve-minute drive away. Currently operating the UAE’s most extensive retail network for postal and community services, Emirates Post will add new service centres to its existing 85 branches and two mall kiosks. These centres will be tailored to off er personalised services to meet community-specifi c needs. Furthermore, the UAE’s membership in the Universal Postal Union (UPU), represented by 7X, ensures access to a global postal network spanning 192 countries. Starting July 1, 2024, selected Emirates Post branches will extend operating hours until 8 pm and open on Saturdays, enhancing customer convenience and aligning with global market demands. TruKKer, the leading land freight ecosystem in the MENA region, has announced a strategic public-private partnership (PPP) with Dubai’s Roads and Transport Authority (RTA). The collaboration aims to create an advanced digital platform that enhances the delivery of commercial transport services across Dubai. 7X plans major global expansion, targets 1,000 new service points in 2024 showcasing its bespoke delivery and digital logistics solutions. EMX delivers to over 200 international destinations through an expansive courier partner network and plans to further its global reach through new strategic alliances, leveraging its in-house customs offi ces and world- class airport facilities. Abdulla Mohammed Alashram, 7X’s Group CEO, stated, “We are proud to demonstrate the robust strength of 7X’s network and our strategic plans to enhance our service capabilities and extend our reach through our subsidiaries. By adding new service centres and branches, extending operating hours, and strengthening our regional and international partnerships, we aim to provide unparalleled convenience to our customers. Additionally, 7X has rolled out over 700 PUDOs, with the goal of increasing these locations to 1,000 by the end of 2024, underscoring our commitment to customer accessibility and effi ciency.” Moreover, the company plans to strengthen its fi nancial arm, FINTX, with new branches across the UAE under the Wall Street Exchange brand. Additionally, the Electronic Documents Centre (EDC), a leading integrator and solutions provider under 7X, is set to off er innovative SaaS (Software as a Service) models, empowering over 90 clients across ten countries and 11 industries. connectivity, streamline pricing, and drive sustainability. Gaurav Biswas, CEO and founder of TruKKer, expressed his enthusiasm, “This agreement represents a strategic step towards providing advanced, user-friendly solutions that meet the diverse transportation needs of individuals and businesses in Dubai. The platform will utilise automation to deliver real- time, actionable information to users, ensuring a smooth experience for both customers and operators.” The partnership between TruKKer and RTA signifi es a major leap forward in Dubai’s commercial transport sector. It promises to deliver innovative, effi cient, and sustainable transport solutions. Abdulla Yousef Al Ali, CEO of the Licensing Agency at RTA, commented, “This initiative aligns with international best practices and our commitment to developing a sophisticated network and systems that provide sustainable and smart commercial transport solutions for both individuals and businesses. We aim to deliver sophisticated yet user-friendly services to a diverse community.” Biswas added, “This initiative prioritises user convenience, ensures reliability with registered service providers, and aligns with our long- term commitment to Environmental, Social, and Governance (ESG) principles.” Dubai’s RTA and TruKKer join forces for smarter transport EMX, 7X’s Courier, Express, and Parcel (CEP) arm, is expanding its service capabilities both within the UAE and internationally. With a fl eet of over 600 vehicles and more than 600 couriers, EMX operates a primary airport hub at Dubai Airport and manages shipments from Abu Dhabi and Sharjah airports, ensuring reliable delivery solutions. The CEP provider has recently signed agreements with consulates, government service centres, banks, and e-commerce providers, The innovative platform will revolutionise commercial transport services by integrating all fl eet service providers and vehicles into a unifi ed system. Both B2B and B2C customers will benefi t from more extensive and streamlined access to road freight transport services. The partnership’s key objectives are to create a unifi ed marketplace, ensure effi cient Abdulla Mohammed Alashram, Group CEO, 7X The companies will create a unifi ed digital platform LOG_Aug2024_6-9_News_13344040.indd 7LOG_Aug2024_6-9_News_13344040.indd 724/07/2024 11:3724/07/2024 11:378www.logis tic smiddleeas t .comAUGUST 2024 | LOGISTICS MIDDLE EAST UPDATE | AUGUST 2024 Game-changing logistics partnership to shake up Saudi Arabia combined capabilities will set new benchmarks for effi ciency and customer satisfaction in the Saudi Arabian logistics sector.” Fares Al Zoghaibi, CEO of Premium Shipping, added, “Collaborating with Mile Solutions is a strategic move to enhance our service off erings and operational capabilities. Their advanced software solutions perfectly complement our extensive logistics network.” innovation and excellence. Integrating Mile’s advanced logistics solutions with Premium Shipping’s seasoned services will deliver tailored, comprehensive logistics solutions for the Saudi market. Fawad Ahmed Mian, CTO and co-founder of Mile Solutions, commented, “By joining forces with Premium Shipping, we are confi dent that our Mile Solutions and Premium Shipping have joined forces Mile Solutions, a leader in advanced logistics software, and Premium Shipping, a leading delivery and warehousing service provider in Saudi Arabia, have announced a strategic partnership to revolutionise the Kingdom’s logistics sector. The collaboration signifi es a milestone in enhancing logistics effi ciency and service quality across KSA. Premium Shipping is on an ambitious growth trajectory, aiming to off er comprehensive end- to-end logistics services throughout Saudi Arabia’s major cities. To achieve this, they have partnered with Mile Solutions, whose fl agship product will automate storage, fulfi lment, and delivery operations in various cold chain and regular warehouse facilities. The technology will also optimise deliveries across a vast fl eet of drivers and ensure seamless integration across all departments. The partnership will leverage Mile’s state-of-the-art logistics software and Premium’s extensive delivery and warehousing expertise to create a strong logistics network in KSA. By integrating these strengths, the collaboration aims to streamline operations, boost effi ciency, and provide exceptional value to clients in diverse industries. Aligned with Saudi Vision 2030, the strategic alliance underscores a shared commitment to Saudi container handling surges 48% in Q2 2024 Riyadh led the surge with an impressive 1,027 new records. Following closely were the Makkah Region with 738 records, the Eastern Region with 405, the Madinah Region with 79, and the Qassim Region with 59 records. The substantial increase aligns with the broader goals of Saudi Vision 2030, aiming to enhance the Kingdom’s economic landscape by fostering local and international business opportunities. The Ministry’s report underscored the contribution of key sectors, such as transportation, logistics, technology services, and recreational arts and entertainment, to the country’s GDP. In addition to these achievements, Saudi Arabia is working towards transforming its container shipping sector. The Saudi Ports Authority (Mawani) has initiated several major projects, including constructing a $40 million integrated logistics park at King Abdulaziz Port in Dammam. The park aims to optimise logistics operations, off ering comprehensive services and facilitating transportation across the Kingdom. Saudi Vision 2030 targets quadrupling the annual container throughput to 40 million TEUs by 2030. This will be supported by developments like the Neom project and the expansion of King Abdullah Port, which are expected to enhance the region’s shipping connectivity and global logistics services. The Kingdom saw a signifi cant rise in new commercial fi les According to the latest report from the Ministry of Commerce, Saudi Arabia’s container handling services experienced a strong 48% growth in the second quarter of 2024. The Ministry’s quarterly bulletin revealed that 2,457 new commercial fi les were registered for container handling services, a signifi cant rise from 1,658 fi les in the same quarter last year. LOG_Aug2024_6-9_News_13344040.indd 8LOG_Aug2024_6-9_News_13344040.indd 824/07/2024 11:3724/07/2024 11:379www.logis tic smiddleeas t .comLOGISTICS MIDDLE EAST | AUGUST 2024 AUGUST 2024 | UPDATE DENZAI has announced the formation of a joint venture with MEGALIFT SARL, Algeria’s largest heavy lifting and transport company. The new joint venture company, named MEGALIFT DENZAI SARL, marks a strategic move to enter the African market. The collaboration aims to leverage both companies’ strengths to provide MEGALIFT DENZAI to revolutionise African markets with joint venture continent. Kohki Uemura, CEO of DENZAI, explained the importance of the joint venture for expansion and tapping into Algeria’s strategic location in Africa. He stated, “This partnership will enable us to off er high-value- added integrated construction services for natural gas and oil-related plants and wind power generation projects across North Africa. We are excited to harness Africa’s growth potential for the benefi t of both companies.” MEGALIFT DENZAI SARL aims to off er integrated construction services for large- scale projects, particularly in the energy sector. The JV will focus on natural gas and oil plants as well as wind power generation in North Africa. Choukri Bouraiou, CEO of MEGALIFT SARL, said the partnership will enable the two companies’ expertise to shine in a local market that is rapidly evolving. He stated, “MEGALIFT DENZAI SARL will position us to tackle challenges, seize new business opportunities, and create a new success story in Africa.” By leveraging DENZAI’s advanced technical planning and MEGALIFT’s established local presence, the JV is set to provide innovative and effi cient solutions, enhancing market competitiveness and driving growth in the region. enhanced services and tap into the region’s growth potential. DENZAI has been actively seeking opportunities to establish a signifi cant presence in Africa in recent times. The joint venture will commence operations in Algeria and plans to expand its footprint across Northern Africa and the broader African The new JV will tap into Africa’s growth potential The signing ceremony for the new car market in Dubai Dubai is set to become home to the world’s largest and most advanced car market, thanks to a new initiative directed by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai. The development aims to enhance Dubai’s status as a leading global city in the automotive trade sector. The new Dubai Car Market will be eight times larger than the current market and span 20 million square feet. DP World will construct and manage the facility by leveraging its global logistics expertise and network of over 430 business units in 86 countries. The company’s extensive network includes 77 ports worldwide, ensuring the market’s seamless integration into global trade routes. H.H. Sheikh Mohammed bin Rashid stated, “Today, we have mandated DP World to develop the ‘Dubai Car Market’, expanding the current market eightfold to create a 20 million square feet facility that will be the largest and most advanced car market globally. The ‘Dubai Car Market’ will be connected with 77 ports managed by DP World around the globe, enhancing its capacity and doubling its current sales of AED 6.8 billion.” state-of-the-art infrastructure and services that support both local and global economic growth. As a strategic project under the Dubai Economic Agenda D33, it refl ects the emirate’s commitment to innovation, sustainability, and global connectivity. Dubai’s new car market set to break records The Dubai Car Market will provide various integrated services, including buying, selling, registration, banking, and logistics. Designed to be a global hub, it will host major automotive events and conferences, attracting car enthusiasts and investors worldwide. The market will feature exhibition spaces, recreational zones, and cultural and commercial areas. The partnership between Dubai Municipality and DP World’s Economic Zones Sector underscores Dubai’s commitment to innovation and trade within the automotive sector. DP World will utilise its experience developing and operating integrated economic zones to off er advanced systems for businesses and investors, comprehensive logistical solutions, and e-commerce and trade fi nance services. Dawoud Al Hajri, Director-General of Dubai Municipality, stated, “We aim to provide the best services that meet the needs of investors and traders, enhancing Dubai’s position as a premier global investment destination in the automotive sector.” The development of the Dubai Car Market aligns with Dubai’s vision to be a global leader in the automotive trade sector, providing LOG_Aug2024_6-9_News_13344040.indd 9LOG_Aug2024_6-9_News_13344040.indd 924/07/2024 17:4824/07/2024 17:48Next >