Logistics ME

< PreviousCOVER STORY | LODD AUTONOMOUS 30www.logis tic smiddleeas t .comOCTOBER 2025 | LOGISTICS MIDDLE EAST COVER STORY | LODD AUTONOMOUS 30www.logis tic smiddleeas t .comOCTOBER 2025 | LOGISTICS MIDDLE EAST LOG_Oct2025_30-35_Cover Story_13728495.indd 3009/10/2025 10:18LODD AUTONOMOUS | COVER STORY 31www.logis tic smiddleeas t .comLOGISTICS MIDDLE EAST | OCTOBER 2025 In Abu Dhabi’s thriving innovation ecosystem, where futuristic ideas often move from blueprint to reality with remarkable speed, one company is preparing to make history. Founded in 2023, LODD Autonomous is redeﬁ ning the way cargo ﬂ ows between cities, industries, and even the most remote outposts. At the centre of this exciting venture is Rashid Al Manai, a man determined to solve logistics’ most stubborn bottleneck: the middle mile. “The company was established in May 2023,” Al Manai recalls. “His Excellency Faisal Al Bannai, Advisor to the UAE President for Strategic Research and Advanced Technology Aff airs. Tasked me with creating a company dedicated to autonomous logistics for the civilian market. At the time, many industry players were focusing on passenger platforms. Our vision, however, was clear from day one: to design a purpose-built logistics platform. That decision proved successful. While others later attempted to convert passenger platforms into cargo, those designs were never optimised for freight. By contrast, we embedded cargo capability into the very DNA of our platform from the start.” MIDDLE-MILE MAGICIAN LODD and its CEO Rashid Al Manai are redeﬁ ning delivery with new Hili cargo drone Photography by Ajith Narendra LODD AUTONOMOUS | COVER STORY 31www.logis tic smiddleeas t .comLOGISTICS MIDDLE EAST | OCTOBER 2025 LOG_Oct2025_30-35_Cover Story_13728495.indd 3109/10/2025 10:18COVER STORY | LODD AUTONOMOUS 32www.logis tic smiddleeas t .comOCTOBER 2025 | LOGISTICS MIDDLE EAST “We examined the ﬁ rst mile, the last mile, and the middle mile,” Al Manai explains. “It quickly became clear that the real bottleneck lies in the middle mile. It’s a multi-stage, ineffi cient, and costly process that is heavily dependent on complex infrastructure. While most investment has ﬂ owed into last-mile solutions, the middle mile has been largely overlooked, so we saw it as the right place to focus our eff orts.” From that insight, LODD began a journey that is now culminating in the imminent ﬁ rst ﬂ ight of its ﬂ agship aircraft, Hili, a hybrid-powered, autonomous cargo aircraft capable of carrying 250 kilograms up to 300 kilometres without reliance on airports or specialised ground infrastructure. FROM CONCEPT TO AIRCRAFT The past two years have been a whirlwind of conceptual design, engineering milestones and countless late nights for Al Manai and his team. “We have focused on creating a product that integrates seamlessly into the existing middle-mile ecosystem,” he says. “We moved from conceptual to detailed design, reaching our conﬁ guration freeze in February 2024. Since then, we advanced into production by completing the build, installing all systems and ﬁ nalising the ground testing just last month.” The aircraft has now been transferred to LODD’s The hybrid propulsion system integrates electric motors for vertical ascent Over the past two years, Al Manai and his team have navigated a whirlwind of design concepts, engineering breakthroughs, and countless late nights LOG_Oct2025_30-35_Cover Story_13728495.indd 3209/10/2025 10:19LODD AUTONOMOUS | COVER STORY 33www.logis tic smiddleeas t .comLOGISTICS MIDDLE EAST | OCTOBER 2025 ﬂ ight test facility in Al Ain, where it is just weeks away from its maiden ﬂ ight. That moment will mark a milestone: the ﬁ rst autonomous aircraft to be designed, built, tested and ﬂ own entirely in the UAE. Driving this achievement is LODD’s ability to balance in-house innovation with carefully chosen partnerships. “Most of the critical components that make our autonomous solution possible come from us,” says Al Manai. “But in aerospace, you cannot do everything internally as it would take far too long. Instead, we have stayed agile by working with strategic suppliers. For instance, we could spend a decade developing an engine, but why not partner with those who already have decades of expertise?” WHY HYBRID WINS THE RACE The Hili aircraft stands out in a crowded ﬁ eld of experimental drones and eVTOL concepts. While much of the global industry has pursued fully electric designs, LODD took a contrarian path from the start. “Our hybrid propulsion system combines electrical motors for vertical takeoff with a combustion engine for cruise,” Al Manai explains. “This directly addresses the range challenge. Purely electric aircraft are constrained by battery density, but with Hili, we can operate commercial cargo routes today, not years from now.” Rashid Al Manai, CEO, LODD Autonomous “The aircraft has been entirely designed, engineered, and produced here in the UAE, marking a signiﬁ cant milestone in national innovation” LOG_Oct2025_30-35_Cover Story_13728495.indd 3309/10/2025 10:19COVER STORY | LODD AUTONOMOUS 34www.logis tic smiddleeas t .comOCTOBER 2025 | LOGISTICS MIDDLE EAST The hybrid system also enables in-ﬂ ight recharging. “You consume battery power for vertical lift during takeoff ,” he says. “Once in cruise, an onboard generator replenishes the batteries. That eliminates the need for ground based charging infrastructure, allowing the aircraft to land anywhere - a warehouse rooftop, a parking lot, or even an off shore oil rig.” The implications for logistics are transformative. Conventional air cargo requires runways, airports, and a complex network of support infrastructure. Hili bypasses all of that, linking warehouses directly and eliminating hours, even days, of delay. With a payload capacity of 250 kilograms and a range of 300 kilometres, the aircraft strikes a crucial balance: large enough to handle high-value shipments but nimble enough to operate ﬂ exibly across diverse environments. “We can connect logistics hubs and warehouses directly without relying on airports,” Al Manai stresses. A FOCUS ON CRITICAL CARGO LODD’s vision is not to replace trucks or aeroplanes, but to close a critical gap in logistics where speed and reliability matter most. “The aircraft has been designed to address a wide range of mission-critical use cases,” Al Manai says. “That includes express shipping of high-value, time-sensitive items, such as pharmaceuticals, medicine, industrial components, or spare parts for off shore oil rigs. When any of these are delayed, it can halt an entire operation, leading to signiﬁ cant ﬁ nancial losses. Hili ensures that we can mitigate these risks and deliver where conventional logistics face limitations.” In short, Hili’s core value proposition is to bridge the middle-mile gap in e-commerce by enabling rapid parcel transfers between warehouses. It creates direct air corridors—fast lanes from warehouse to warehouse, and from sorting facilities to delivery hubs—bypassing traditional bottlenecks. THE UAE ADVANTAGE The UAE has emerged as a global hub for advanced air mobility companies, attracting leading companies like Joby and Archer to test passenger eVTOLs in the region. For LODD, this dynamic environment has been a signiﬁ cant advantage. “The UAE off ers a unique combination of factors that make it an ideal hub for innovation,” Al Manai reﬂ ects. “It combines a progressive regulatory framework with diverse geography, spanning islands, deserts, and dense urban areas, supported by world-class infrastructure. This rare mix accultures the maturation of emerging sectors, from air taxis to autonomous logistics, positioning the UAE as a global leader in shaping the future of mobility.” This supportive regulatory climate has enabled LODD to grow at a pace that few of its peers can match. Its test ﬂ ights are being conducted under close collaboration with the General Civil Aviation Authority (GCAA), ensuring safety and compliance are embedded into the programme from the very beginning. BUSINESS MODEL AND INDUSTRY INTEREST While the aircraft edges closer to its maiden ﬂ ight, LODD has also been shaping its commercial strategy. The company remains very ﬂ exible, “It quickly became clear that the real bottleneck lies in the middle mile. It’s a multi-stage, ineffi cient, and costly process that is heavily dependent on complex infrastructure. While most investment has ﬂ owed into last-mile solutions, the middle mile has been largely overlooked, so we saw it as the right place to focus our eff orts” Al Manai and the LODD team have made incredible progress less than two years since launching LOG_Oct2025_30-35_Cover Story_13728495.indd 3409/10/2025 10:40LODD AUTONOMOUS | COVER STORY 35www.logis tic smiddleeas t .comLOGISTICS MIDDLE EAST | OCTOBER 2025 whether through direct sales, leasing, or operating the aircraft as a service. “We are always exploring every opportunity and possibility,” says Al Manai. “Whether to off er our services based on hourly charges or any other model that ﬁ ts our clients, our focus is on effi ciency. What we can guarantee is that the operational cost of this aircraft will be a fraction of what conventional air cargo portions cost today, which will reshape the economics of air transport.” That value proposition is already drawing attention. “It has been just a month since we began engaging openly with potential customers,” Al Manai notes. “The response has been considerable, both from local and international players, eager to test and validate the concept. We are working with e-commerce, courier, express, and freight forwarder companies to gather feedback, and so far, it has been positive.” A NAME WITH HISTORY For Al Manai, the aircraft is a marker of identity as much as innovation, and ﬁ nding a name worthy of that symbolism was essential. “We wanted a name that was easy, memorable, and connected to the UAE. We thought of Hili.” Hili is an oasis in the desert of Abu Dhabi, a UNESCO World Heritage Site where archaeological ﬁ nds reveal that ancient civilisations traded thousands of years ago. “It was a hub of trade between Oman, Saudi Arabia, and the wider region during the Bronze Age, almost 5,000 years ago,” Al Manai says. “The name ﬁ ts perfectly, connecting our rich past with a future focused on innovation.” The resonance is clear: just as Hili Oasis once connected ancient trade routes, Hili the aircraft could connect modern logistics hubs with unprecedented speed and ﬂ exibility. LOOKING BEYOND BORDERS While the UAE serves as LODD’s launchpad, LODD’s ambitions extend far beyond its borders. “Our strategic location makes the UAE an ideal hub for partnerships with both local and international players,” Al Manai says. “But the aircraft itself has been designed for global scalability. Regions like Africa, the Asia Paciﬁ c, and parts of Europe, where logistics infrastructure is still developing, stand to gain hugely from this solution.” Still, the UAE remains the proving ground. “Our priority is to validate the aircraft here ﬁ rst, then expand internationally,” he notes. “The UAE already boasts world-class logistics infrastructure, but demonstrating success here will set a benchmark for what is possible globally.” For Al Manai, LODD’s journey is just as much about national pride as it is about business growth. “The aircraft has been entirely designed, engineered, and built here in the UAE,” he says with pride. “We see it as a milestone in the country’s innovation story.” With the ﬁ rst ﬂ ight now just weeks away, anticipation is mounting. A successful launch would not only validate LODD’s hybrid vision but also position Abu Dhabi as a global leader in autonomous cargo aviation. As Al Manai reﬂ ects on the journey from a simple idea in 2023 to the verge of a world-ﬁ rst milestone, his tone carries both pride and resolve, “It has been an incredible journey,” he says. “And it’s only the beginning.” 250 KG The Hili drone has this payload capacity, with a range of up to 300 kilometres The aircraft was fully designed, engineered, and built in the UAE Hili will take ﬂ ight before the end of 2025 with its initial testing phase LOG_Oct2025_30-35_Cover Story_13728495.indd 3509/10/2025 10:19FEATURE | HYPERLOCAL LOGISTICS 36www.logis tic smiddleeas t .comOCTOBER 2025 | LOGISTICS MIDDLE EAST Hyperlocal, tech-enabled systems are replacing the traditional model of mass production and global shipping THE RISE OF HYPERLOCAL LOGISTICS The traditional model of global supply chains, built around large-scale production in distant hubs and long-distance shipping, is rapidly losing relevance. Geopolitical disruptions, climate pressures, and rising e-commerce expectations are reshaping how goods are produced, stored, and delivered. According to the 2025 Tech Trends Report by Future Today Strategy Group, two innovations stand out as transformative: nano-fulﬁ lment centres and smart warehouses. Together, they signal a future where production and delivery become hyperlocal, automated, and resilient. FROM MEGA HUBS TO NANO-FULFILMENT Nano-fulﬁ lment centres ﬂ ip the conventional logistics model on its head. Instead of relying on mega-warehouses and shipping routes spanning continents, they combine additive manufacturing, underground transport systems, and digital twins to create localised ecosystems for on-demand production. In Portland, Oregon, the “Made in Old Town” project is already pioneering this approach, transforming a historic district into a sustainable hub for footwear and apparel. In Japan, a 310-mile automated underground conveyor system between Tokyo and Osaka is being built to move cargo equivalent to 25,000 trucks daily, while UK-based Magway is piloting underground tube networks to cut urban congestion. These examples demonstrate how nano fulﬁ lment centres can reduce delivery times, lower greenhouse gas emissions, and enhance resilience against global shipping disruptions. For industries like retail and e-commerce, they also unlock the ability to produce and deliver customised products directly within local markets. THE SMART WAREHOUSE REVOLUTION Parallel to the rise of nano-fulﬁ lment is the transformation of warehouse operations. Smart warehouses integrate AI, robotics, quantum computing, and digital twins to optimise inventory, reduce manual intervention and accelerate throughput. In Guangzhou, fast-fashion giant Shein is building a logistics hub that seamlessly unites stocking, picking, and distribution. At the same time, Xiaomi’s autonomous factory in Beijing already manufactures smartphones with minimal oversight. Intelligent warehouse management systems now place goods based on real-time demand patterns, while autonomous forklifts and gesture-controlled digital twins keep operations running smoothly. For operators, the payoff is clear: lower costs, faster response times, and fewer errors. But more importantly, smart warehouses provide resilience at a time when labour shortages and customer expectations are colliding. IMPLICATIONS FOR THE MIDDLE EAST The Middle East’s logistics sector is uniquely positioned to benefit from these shifts. Gulf governments are investing heavily in logistics infrastructure as part of national visions to aim to turn the region into a global hub for trade and e-commerce. The report highlights how localised production and warehouse automation could enable the region to leapfrog legacy systems. Saudi Arabia’s Vision 2030 includes bold targets to raise the LOG_Oct2025_36-37_Feature_13727214.indd 3605/10/2025 23:09HYPERLOCAL LOGISTICS | FEATURE 37www.logis tic smiddleeas t .comLOGISTICS MIDDLE EAST | OCTOBER 2025 Nano-fulﬁ lment centres are ﬂ ipping the conventional logistics model on its head Kingdom’s logistics performance, while the UAE continues to integrate AI into smart city and free-zone ecosystems. Adopting nano-fulﬁ lment models could help Gulf markets hedge against external disruptions, such as challenges in Red Sea shipping or volatile global freight costs. By embedding these innovations into free zones, ports, and e-commerce strategies, Middle Eastern logistics players can shorten supply chains, cut emissions, and meet customer demand for speed and transparency. CHALLENGES ON THE HORIZON The opportunities are compelling, but they come with challenges. Nano-fulfilment centres and smart warehouses demand heavy capital investment, which can strain SMEs. Increased automation also brings cybersecurity vulnerabilities, as interconnected systems become more attractive targets. There is also the human factor. While automation eases labour shortages, it risks displacing workers. Reskilling will be critical, with demand growing for specialists in robotics, AI systems, and digital platforms. Additionally, energy consumption for fully automated warehouses could clash with sustainability targets unless paired with renewable power sources. Despite these hurdles, the Middle East has an opening to lead. Underground logistics networks could help solve the region’s urban congestion challenges in cities like Riyadh and Dubai. Free zones could partner with 3D printing startups and e-commerce platforms to pilot nano fulﬁ lment models. And smart warehouses powered by blockchain and digital twins could set new standards for compliance and transparency across regional and global trade. With the right investments and partnerships, these technologies can turn the Gulf into a testing ground for next-generation supply chains. Instead of simply catching up with global players, Middle Eastern operators have the chance to deﬁ ne the future of logistics. 25,000 In Japan, a 310-mile automated underground conveyor system between Tokyo and Osaka is being built to move cargo equivalent to this many trucks daily LOG_Oct2025_36-37_Feature_13727214.indd 3705/10/2025 23:09INTERVIEW | SIEMENS MOBILITY 38www.logis tic smiddleeas t .comOCTOBER 2025 | LOGISTICS MIDDLE EAST ENGINEERING RAIL FOR THE DESERT’S TOUGHEST CONDITIONS As the Middle East accelerates its rail ambitions, cutting-edge train technology is overcoming heat, dust, and sand to deliver effi ciency, comfort, and sustainability As the Global Rail 2025 exhibition is being held in Abu Dhabi this month, Siemens Mobility is set on redeﬁ ning what’s possible in the region’s extreme conditions. Ayman Ashour, CEO of Siemens Mobility’s turnkey business in the Middle East and Africa and Siemens Mobility in the UAE, believes that as the Middle East accelerates its infrastructure ambitions, the desert is no longer a barrier; it’s solid ground. “Desert climates do pose unique challenges,” conﬁ rms Ashour. “Extreme heat, abrasive dust, variable sand types, and intense solar radiation are all conditions that can compromise traditional rail systems, aff ecting everything from traction and cooling to passenger comfort and safety.” ENGINEERING RAIL FOR THE DESERT From Egypt’s sands to the UAE-Oman Rail project, Siemens Mobility has spent the past decade developing rail systems designed to operate reliably in desert conditions, adapting high-speed technology to withstand the region’s environment. In particular, its latest Velaro Novo train operates LOG_Oct2025_38-39_Interview_13714375.indd 3828/09/2025 23:20SIEMENS MOBILITY | INTERVIEW 39www.logis tic smiddleeas t .comLOGISTICS MIDDLE EAST | OCTOBER 2025 effi ciently in temperatures exceeding 50°C and resists sand inﬁ ltration and UV damage. The air conditioning system features enhanced cooling capacity, while its sealed components and aerodynamic design minimise sand intrusion. The innovative train concept is impressive for its low maintenance costs, low energy consumption, and maximised availability, along with improved passenger comfort. “Velaro Novo’s lightweight body shell is based on the empty tube concept, meaning that there are no permanent installations inside the car and the interior can be furnished according to customer wishes,” notes Ashour. SUSTAINABILITY WITH ECONOMIC IMPACT Beyond performance, Velaro Novo supports sustainability goals by off ering energy-effi cient operations and reducing CO₂ emissions. Siemens Mobility’s turnkey solutions thus align with national visions such as the UAE’s Net Zero 2050 strategy. “We are committed to sustainable mobility solutions, driven by urbanisation, digitisation, globalisation, and demographic changes,” Ashour continues. “We aim to mitigate climate change and resource depletion by setting sustainability standards that enable decarbonisation and dematerialisation.” Moreover, Ashour is passionate about high speed rail as a catalyst for national development. “Stations become hubs for new cities, industries, and jobs,” he contends. Siemens Mobility’s ﬂ agship project in Egypt, for example, is a 2,000 km network that is expected to connect 90% of the population, reduce travel time by half, and support cargo operations that fuel economic growth. DECADES OF REGIONAL MILESTONES With over 30,000 trains and locomotives currently in operation by 500 customers within more than 100 countries, achieving more than 1 billion passenger-kilometres every day, Siemens Mobility is already a trusted partner in the UAE and wider MEA region. Over the years, Ashour has personally witnessed and contributed to milestones in the region’s rail journey. This includes the GCC’s ﬁ rst ETCS Level 1 solution in 2008 (Dammam–Riyadh Line, Saudi Arabia) and the world’s ﬁ rst catenary and third-rail-free LRT in 2019 (Qatar Education City), the agreement of Egypt’s high-speed network in 2021, and the ﬁ rst cross-border signaling solution between the UAE and Oman in 2024. “Today, we are keen to collaborate with partners and customers to deliver the ﬁ rst high-speed rail solution in the UAE. Our participation in the Global Rail exhibition in Abu Dhabi reﬂ ects this excitement, and our broader commitment to transforming mobility for everyone,” concludes Ashour. Without doubt, rail is set to play a central role in the region’s mobility evolution. “We aim to mitigate climate change and resource depletion by setting sustainability standards that enable decarbonisation and dematerialisation across the mobility value chain” Ayman Ashour of Siemens Mobility LOG_Oct2025_38-39_Interview_13714375.indd 3928/09/2025 23:20Next >