< Previous10www.logis tic smiddleeas t .comNOVEMBER 2024 | LOGISTICS MIDDLE EAST TRENDING | SOCIAL MEDIA #TRENDING TWITTERFACEBOOKLINKEDIN UAE-China partnership expands with new shipbuilding contracts ADNOC L&S, in partnership with Wanhua Chemical Group through AW Shipping, has announced the awarding of $250m contracts to Jiangnan Shipyard for the construction of two Very Large Ammonia Carriers. The contracts, signed in Abu Dhabi during the opening ceremony of Jiangnan Shipyard’s fi rst Middle East offi ce, follow an initial agreement made in July 2024 in China for two vessels, with an option to order an additional two. Saudi Arabia’s 2025 budget to drive logistics growth Saudi Arabia’s Ministry of Finance has released its Pre-Budget Statement for the fi scal year 2025, estimating revenues of SAR 1.184 trillion and expenditures of SAR 1.285 trillion, resulting in a projected defi cit of SAR 101 billion, or 2.3% of the GDP. The Saudi government’s focus on strategic spending continues to prioritise economic diversifi cation and sustainable growth, with investments in infrastructure, non-oil sectors, and the development of key industries. The top trending stories from our website and social media channels Milaha secures $217m deal to boost Qatar’s maritime strength Milaha, Qatar’s leading maritime and logistics provider, has secured a major 10- year contract with North Oil Company (NOC), valued at $217.58 million. The milestone refl ects Milaha’s strategic role in advancing Qatar’s off shore infrastructure Through its subsidiary, Halul Off shore Services Company W.L.L., Milaha will operate the Milaha Al Shaheen, Qatar’s fi rst fl agship self-elevating, self-propelled jack-up barge. LOG_Nov2024_10-11_Trending_13422390.indd 10LOG_Nov2024_10-11_Trending_13422390.indd 1024/10/2024 09:2424/10/2024 09:2411www.logis tic smiddleeas t .comLOGISTICS MIDDLE EAST | NOVEMBER 2024 TOP STORIES | TRENDING ASMO STRENGTHENS ITS PRESENCE IN SAUDI WITH NEW PARTNERSHIPS ETIHAD RAIL SIGNS 10 KEY MOUS AT GLOBAL RAIL TO ADVANCE RAIL SECTOR FLYDUBAI CARGO’S DIGITAL TRANSFORMATION VIA CARGO.ONE TRANSFORMING SAUDI LOGISTICS: LOGIPOINT AND UNIPART JOIN FORCES TOP STORIES on w w w.logisticsmiddleeast .com Etihad Rail, the UAE’s national railway network operator, successfully concluded the fi rst edition of Global Rail. During the event, the company signed 10 MoUs and agreements with international railway, transport, and infrastructure companies. ASMO, a joint venture between DHL and Aramco via the Saudi Aramco Development Company, has announced new strategic partnerships and opened its headquarters at the Asharqia Chamber of Commerce Tower in Dammam. LogiPoint, Saudi Arabia’s leading logistics infrastructure development company, has entered into a strategic partnership with Unipart Group, a UK-based global supply chain solutions provider, to revolutionise logistics in the Kingdom. fl ydubai Cargo, the cargo division of Dubai-based fl ydubai, has teamed up with leading digital air cargo booking platform cargo.one, marking the carrier’s fi rst step into digital distribution. DISCOVER MORE @LogisticsME@logistics_ME @Logistics__ME Logistics Middle East Join the conversation LOG_Nov2024_10-11_Trending_13422390.indd 11LOG_Nov2024_10-11_Trending_13422390.indd 1124/10/2024 09:2424/10/2024 09:24PARTNER CONTENT | GWC 12www.logis tic smiddleeas t .comNOVEMBER 2024 | LOGISTICS MIDDLE EAST A NEW DAWN FOR ENERGY LOGISTICS GWC’s commitment to sustainability and digitalisation is leading the logistics industry into the future LOG_Nov2024_12-15_Cover Story-GWC_13421366.indd 12LOG_Nov2024_12-15_Cover Story-GWC_13421366.indd 1224/10/2024 12:0024/10/2024 12:00GWC | COVER STORY 13www.logis tic smiddleeas t .comLOGISTICS MIDDLE EAST | NOVEMBER 2024 Sustainability is no longer an option but a necessity in today’s logistics landscape GWC has established itself as a trailblazer in the logistics industry not only through its impressive growth across the GCC and globally, but also through its fi rm commitment to sustainability and digitalisation. The company has aligned its operations with environmental, social, and governance (ESG) principles, integrating cutting-edge technologies to enhance service delivery while reducing its environmental footprint. This combination of innovation and responsibility positions GWC as a key player driving the future of logistics. PIONEERING ESG INITIATIVES IN THE LOGISTICS SECTOR GWC’s commitment to ESG initiatives is central to its corporate strategy. The company strives to balance its rapid expansion with responsible practices that promote sustainability. GWC has developed a comprehensive framework aimed at reducing its carbon footprint, improving transparency, and fostering community engagement. These initiatives focus on reducing waste, optimising energy use, and adopting green technologies across its extensive logistics infrastructure. According to Ranjeev Menon, Group CEO of GWC, “Sustainability is no longer an option but a necessity in today’s logistics landscape. GWC is dedicated to leading the industry in Ranjeev Menon, Group CEO, GWC LOG_Nov2024_12-15_Cover Story-GWC_13421366.indd 13LOG_Nov2024_12-15_Cover Story-GWC_13421366.indd 1324/10/2024 12:0124/10/2024 12:01PARTNER CONTENT | GWC 14www.logis tic smiddleeas t .comNOVEMBER 2024 | LOGISTICS MIDDLE EAST adopting environmentally friendly practices while continuously improving our operational effi ciency through digitalisation. Our goal is to create value for our clients while ensuring that our growth is sustainable and aligned with global environmental standards.” The company’s state-of-the-art facilities, spanning over 4 million square metres, are designed to operate effi ciently with a focus on reducing energy consumption and minimising waste. GWC also partners with local and international stakeholders to ensure that its operations align with global best practices for sustainability. LEVERAGING TECHNOLOGY FOR SUSTAINABLE GROWTH Its strategic use of advanced technologies is at the heart of GWC’s sustainability eff orts. The company leverages AI, automation, and IoT (Internet of Things) to enhance its logistics operations, making them more effi cient and environmentally friendly. The implementation of AI-powered solutions has enabled GWC to optimise supply chain management, reduce fuel consumption, and improve delivery times—all of which contribute to a smaller environmental footprint. Madhu Vallur, Executive Director of GWC Energy, adds, “Technology is a game- changer for us, especially when it comes to our sustainability eff orts. By integrating AI and IoT into our operations, we’ve been able to optimise everything from fl eet management to energy consumption, drastically reducing our environmental impact. GWC Energy is committed to ensuring that our operations are both digitally advanced and sustainable.” The company’s adoption of digital platforms also extends to real-time tracking and supply chain transparency, allowing clients to monitor their shipments while minimising waste. This not only increases operational effi ciency, but also strengthens customer relationships by providing greater visibility and accountability. In addition, GWC’s Records Management Services highlight the company’s commitment to sustainable digital solutions. With over 2.5 billion documents archived and advanced facilities that comply with ISO standards, GWC manages the complete lifecycle of records, reducing the need for physical storage and contributing to a more eco-friendly solution. GWC’S GROWTH ACROSS THE GCC AND BEYOND GWC has experienced rapid growth across the GCC region, positioning itself as a logistics leader. With a growing footprint in international markets, GWC continues to expand its operations, off ering its industry- leading logistics services to a global client base. The company’s comprehensive service portfolio includes everything from warehousing and distribution to specialised logistics solutions such as hazardous materials handling, fi ne art logistics, and equestrian logistics. “Our growth in the GCC and globally is a testament to the trust our clients place in us,” says Menon. “We’re constantly innovating, investing in technology, and expanding our capabilities to meet the growing demands of global trade. Our vision is to remain at the forefront of the logistics industry by combining world-class service with a commitment to sustainability and innovation.” In 2023, GWC’s total assets reached $1.422 billion, a refl ection of the company’s strong fi nancial foundation. This fi nancial stability has allowed GWC to pursue major expansion projects, including its ventures in Oman, KSA, and the Netherlands. The launch of the second phase of the Al Wukair Logistics Park marks a signifi cant milestone in GWC’s mission to support micro, small and medium enterprises (MSMEs) in the region. This modern facility is a catalyst for economic growth, fostering entrepreneurship and facilitating the rapid growth of start-up businesses. LEADING THE ENERGY SECTOR WITH GWC ENERGY A key part of GWC’s growth strategy is expanding its energy sector off ering. The launch of GWC Energy in 2023 underscores the company’s commitment to supporting Qatar’s ambitious plans to signifi cantly increase natural gas production by 2027. This new subsidiary aligns with GWC’s broader goal of integrating sustainable practices into every aspect of its business. GWC Energy off ers complete shipping, marine, and logistics solutions that are customised for clients in the energy sector. Manpower, equipment, marine logistics, warehousing, supply base management, bunker supply and rig, husbandry and mob/ demob assistance are among the core services off ered by the company. Along with onshore and off shore services, GWC Energy also off ers support for paperwork and customs. Its facilities include huge In 2023, GWC’s total assets reached $1.442 billion, a refl ection of the company’s strong fi nancial foundation An inside look at GWC’s supply base in Ras Laff an Industrial City Technology is a game-changer for us, especially when it comes to our sustainability efforts Madhu Vallur, Executive Director, GWC Energy LOG_Nov2024_12-15_Cover Story-GWC_13421366.indd 14LOG_Nov2024_12-15_Cover Story-GWC_13421366.indd 1424/10/2024 12:0124/10/2024 12:01GWC | COVER STORY 15www.logis tic smiddleeas t .comLOGISTICS MIDDLE EAST | NOVEMBER 2024 operational yards, pipe inspection areas, hazardous storage, bulk areas with overhead cranes and numerous capacities, and air- conditioned warehouses with extensive rack capabilities. The company’s energy division also leverages advanced technologies to streamline logistics for the oil and gas sectors, reducing emissions and improving effi ciency. GWC’s strategic investments in energy-focused infrastructure and technologies position it as a vital industry leader, contributing to local and global energy supply chains. INNOVATION DRIVING THE FUTURE GWC’s commitment to innovation extends beyond its sustainability and technology eff orts. The company’s innovation hub fosters a culture of continuous improvement, allowing employees to implement Lean Six Sigma methodologies to enhance effi ciency and reduce waste. This focus on operational excellence ensures that GWC stays ahead of industry trends and stays a leader in innovation. Moreover, GWC’s investments in its transport fl eet, which includes over 1,600 vehicles, showcase the company’s ability to scale operations while maintaining its sustainability goals. The integration of IoT and AI into fl eet management has resulted in optimised routes, and reduced fuel consumption. GWC also continues to invest in its logistics hubs, including facilities dedicated to specifi c industries such as aviation, telecommunications, and fi ne art. These hubs cater to local and international clients, further expanding GWC’s capabilities and off erings. STRONG CORPORATE GOVERNANCE A robust corporate governance framework underlies GWC’s impressive growth and innovation. The company’s Audit Committee and internal control processes ensure that GWC adheres to the highest standards of transparency and accountability. Regular reviews of the company’s governance procedures demonstrate a commitment to ethical business practices, further solidifying GWC’s reputation as a trusted logistics partner in the region. As GWC looks towards 2025 and beyond, its corporate governance practices will remain a cornerstone of its successful business model. The company is committed to maintaining strong relationships with all of its stakeholders, including shareholders, clients, and employees, ensuring that all parties benefi t from GWC’s continued growth and expansion in the coming years. LEADING THE FUTURE OF SUSTAINABLE LOGISTICS GWC’s commitment to ESG principles, digitisation, and sustainable growth has fi rmly positioned it as a leading logistics provider across the GCC. Through divisions such as GWC Energy and GWC Fine Art, the company continues to innovate and integrate advanced technologies that not only enhance effi ciency but also align with global sustainability goals. With GWC’s continued investment in digital solutions and dedication to fostering sustainable practices, the company is well on its way to shaping the future of the logistics industry. As Menon aptly summarises, “GWC is more than just a logistics company—we are a technology-driven, sustainability-focused leader in the industry, constantly reaching new heights and setting new standards for what logistics can achieve.” Meet GWC at ADIPEC 2024. The company will exhibit at stand number 15505, located in Hall 15 Safety in the workplace is a priority for GWC GWC Energy launched in 2023 to support Qatar’s plans to increase natural gas output LOG_Nov2024_12-15_Cover Story-GWC_13421366.indd 15LOG_Nov2024_12-15_Cover Story-GWC_13421366.indd 1524/10/2024 12:0224/10/2024 12:02OPINION | E-COMMERCE BOOM 16www.logis tic smiddleeas t .comNOVEMBER 2024 | LOGISTICS MIDDLE EAST E-COMMERCE BOOM: HOW LAST-MILE INNOVATIONS ARE SHAPING THE FUTURE The rapid development of e-commerce is driving innovative solutions in last-mile delivery, transforming logistics and consumer experiences The progress of society and the unprecedented advancement of technology have signifi cantly impacted e-commerce, which is developing faster than ever before. Recent statistics demonstrate that global retail e-commerce sales reached an estimated $5.8 trillion in 2023, and this fi gure will continue to grow as a result of the growing trend towards e-commerce. The COVID-19 pandemic contributed signifi cantly to this trend not only by driving more purchases, but also by transforming even the most averse consumers into net buyers. This shift to online trade came with increased demand for logistics services, especially for last-mile deliveries, which became crucial to these networks. INNOVATION IN THE LAST MILE The last mile is a delivery activity that describes the transportation of goods from a distribution centre or depot to the fi nal destination. It is mostly the poorest-working and most costly part of the delivery cycle. According to a Capgemini report, this last leg is responsible for 53% of the shipping cost and 41% of the supply chain cost. With customers’ increasing impatience, who demand delivery within the same day or the next hour, companies have to be creative in ensuring speed, cost, and sustainability are balanced. Various companies are coming up with diff erent means of making last-mile delivery less time-consuming and more effi cient. One major advancement includes the deployment of delivery drones or ground- based robotic vehicles. Ultrafast online orders are expected to lower the number of human- driving dispatchers, improve delivery speeds, and have less environmental impact. In the UAE, businesses are preparing to test drones that can fl y over traffi c and reach customers within minutes, further enhancing the multiple methods of package delivery available. For example, Dubai is the fi rst city in the world to allow the delivery of coff ee by drone. Costa Coff ee, a British chain known for its coff ee, trialled its new drone delivery service at one of the city’s most famous beaches. Furthermore, fl ying drones for medical supply drops has helped people in diffi cult-to- reach places in Africa get the medical supplies they require, and perhaps the same method could also be introduced in the UAE. Indeed, at last year’s World Government Summit in Dubai, conversations suggested mitigating the city’s congestion and air pollution by changing the mode of delivery from land to air. Besides drones, delivery robots operating on the ground are becoming popular in the cities. Such robotic machines are made to work on sidewalks and roads and transport light packages to clients. They provide a less costly alternative for last-mile jungles in heavily populated regions where traffi c hold may be an issue. In this case, adopting robots also helps limit the use of emission-generating vehicles, thus supporting a healthier supply chain. Another innovative approach to last-mile delivery is the use of micro fulfi lment centres. These are small distribution centres in urban areas with high-velocity product categories. Businesses can off er reduced lead times and lower transport expenses by moving shipping closer to consumers. This is of immense signifi cance in fulfi lling the ever- growing need to receive goods the same day they were ordered since the goods can be shipped from a micro-fulfi lment centre closer to a distribution centre. Crowdsourcing to deliver goods is another trend that is gaining popularity. These models use a network of freelance drivers who have their cars and run such store deliveries. This model, as practised in platforms such as Uber and Postmates, facilitates the expansion of the delivery business for corporations without investing in many delivery vans. This means crowdsourced delivery is cost-eff ective and opens many ways for people willing to work in the gig economy. CHALLENGES LIE IN WAIT However, some challenges remain after progressing with last-mile delivery. Attention is drawn to the use of technology, such as drones and robots, as it raises issues of privacy, security, and legal compliance. The same problem applies to drones for delivery; if used in large numbers, airspace for business operations may be saturated, which will increase the likelihood of accidents. In the same way, sending delivery robots to the By Dr Shereen Nassar, Global Director of Logistics Studies and Director of MSc Logistics and Supply Chain Management Suite, Heriot-Watt University Dubai With customers’ increasing impatience, who demand delivery within the same day or the next hour, companies have to be creative in ensuring speed, cost, and sustainability are balanced LOG_Nov2024_16-17_Ecommerce Boom_13422772.indd 16LOG_Nov2024_16-17_Ecommerce Boom_13422772.indd 1624/10/2024 09:2924/10/2024 09:29E-COMMERCE BOOM | OPINION 17www.logis tic smiddleeas t .comLOGISTICS MIDDLE EAST | NOVEMBER 2024 streets to operate on sidewalks may endanger other people walking in the street. Additionally, the adoption of those technologies may also be expensive for small- scale businesses. Due to fi nancial power, big companies like Amazon and Walmart can adopt advanced delivery methods. On the other hand, the small retailers are responding slowly because of the resource constraints. Eventually, bigger businesses will likely overshadow the smaller ones and dominate the e-commerce landscape. Consequently, after analysing these diffi culties, technological, legislative and customer-oriented factors will shape the optimum distance within a specifi c time and space in the last mile of logistics. As individuals become increasingly comfortable conducting transactions over the internet, businesses will be required to do even more – off ering lower prices, faster delivery timelines, and decreased carbon footprints. This will lead to new technologies and business models to meet changing consumer needs. AI and smart innovation delivered by the cities can help enhance logistics, assess likelihood and increase usability. In addition, AI boosts resource allocation, routing and real-time tracking performance. At the same time, advancements in smart cities upgrade the chances of such systems as drone corridors and autonomous vehicles-oriented roads, decreasing delivery times and safety. To conclude, it is evident that consumers’ expectations will continue to rise, which means that to maintain relevance in a fast- paced environment, companies have to embrace diff erent types of operations and attitudes towards the market. Although there are some challenges, the advancement in last-mile delivery off ers opportunities for enhanced e-commerce practices that address customer needs while being more effi cient and sustainable. LOG_Nov2024_16-17_Ecommerce Boom_13422772.indd 17LOG_Nov2024_16-17_Ecommerce Boom_13422772.indd 1724/10/2024 09:2924/10/2024 09:29FEATURE | AI AND ML 18www.logis tic smiddleeas t .comNOVEMBER 2024 | LOGISTICS MIDDLE EAST NAVIGATING SUPPLY CHAIN CHALLENGES WITH AI AND ML We look at the impact of AI and ML on supply chain management, off ering solutions for demand prediction and inventory optimisation during disruptive times LOG_Nov2024_18-21_Feature-Supply Chain_13415393.indd 18LOG_Nov2024_18-21_Feature-Supply Chain_13415393.indd 1824/10/2024 09:3124/10/2024 09:31AI AND ML | FEATURE 19www.logis tic smiddleeas t .comLOGISTICS MIDDLE EAST | NOVEMBER 2024 Accurately forecasting demand and managing inventory can make or break a company. While still in use, traditional methods often fall short of addressing the complexities and unpredictabilities of modern supply chains. Enter artifi cial intelligence (AI) and machine learning (ML), technologies that are changing how companies forecast. As businesses grapple with the challenges of global disruptions, the integration of AI and ML off ers opportunities for increased effi ciency, accuracy, and sustainability. Here, we explore these technologies’ impact on supply chain forecasting, demonstrating how they enhance operational effi ciency and signifi cantly reduce waste. THE CURRENT LANDSCAPE OF SUPPLY CHAIN MANAGEMENT Global supply chains have experienced a decade marked by signifi cant disruptions, ranging from geopolitical tensions and trade wars to the unprecedented impacts of the COVID-19 pandemic. These disruptions have exposed the vulnerabilities and ineffi ciencies within traditional supply chain models, leading to a heightened focus on resilience. The normalisation of supply chain operations in 2023 was a relief, but signifi cant risks remain as we navigate 2024. Industrial policies, geopolitical disruptions, and environmental regulations are expected to pose ongoing challenges for the rest of this year and beyond. Disruption has become a constant condition of doing business, and organisations that thrive are those that not only adapt to continuous change, but also become drivers of change themselves. The future of supply chains lies in their ability to be customer-centric, data- powered, and technology-enabled, allowing for real-time adjustments and greater fl exibility. The global AI in supply chain and logistics market was valued at $3.21 billion in 2023, and it is projected to grow at a compound annual growth rate (CAGR) of 23.12%, reaching $14.86 billion by 2030 THE ROLE OF AI AND ML IN FORECASTING AI and ML are revolutionising supply chain forecasting by providing unprecedented accuracy and effi ciency. These technologies enable companies to predict demand more accurately, manage inventory eff ectively, and reduce waste, addressing some of the most signifi cant challenges in supply chain management. AI and ML are integral to improving demand forecasting. Traditional forecasting methods often rely on historical data and linear models, which can fail to capture the complexities and dynamic nature of modern supply chains. In contrast, AI and ML leverage vast amounts of data from various sources, including sales, market trends, and external factors such as weather patterns and geopolitical events, to create more accurate and nuanced forecasts. One of AI’s key benefi ts in supply chain forecasting is its ability to process and analyse large datasets in real-time. This capability allows companies to identify patterns and trends that may not be apparent through manual analysis. For instance, generative AI can provide predictive probabilities of future disruptions, enabling companies to proactively manage risks and avoid potential supply chain bottlenecks. ML algorithms further enhance demand forecasting by continuously learning and Disruption has become a constant condition of doing business, but technology is a huge mitigating factor LOG_Nov2024_18-21_Feature-Supply Chain_13415393.indd 19LOG_Nov2024_18-21_Feature-Supply Chain_13415393.indd 1924/10/2024 09:3124/10/2024 09:31Next >