The Investment Corporation of Dubai, the principal investment arm of the Government of Dubai, has announced the launch of ISS Global Forwarding, a wholly-owned subsidiary focused on supply chain logistics.
Headquartered in Dubai and operating out of the Dubai Airport Free Zone, ISS Global Forwarding will focus on core activities of global freight forwarding, contract logistics and projects/oil and gas, a statement said.
It added that ISS Global Forwarding will initially be present in 18 countries across the Middle East, Africa, Europe, India and Turkey but will expand its footprint to Asia Pacific, mainland China and Singapore.
Industry veteran Enver Moretti who said will lead ISS Global Forwarding, “We are establishing ourselves as a regional powerhouse and our aspiration is to be recognised within the supply chain logistics industry as a customer centric organisation.”
“We are confident in the future global growth opportunities presented by the supply chain logistics industry. We see particular value at this time in the long-term growth opportunities afforded within the emerging markets region where ISS Global Forwarding enjoys a strong presence,” added Mohammed Ibrahim Al Shaibani, CEO and executive director of the Investment Corporation of Dubai.
The establishment of ISS Global Forwarding is the result of a strategic directive by the Government of Dubai to separate Inchcape Shipping Services Holding Ltd into two standalone companies with the aim of optimizing the growth potential, customer focus and core competencies.
Japan Post is entering a joint venture (JV) with its Australian subsidiary Toll Holdings to address demand for logistics services from Japanese automakers and overseas brands and to handle “everything from orders and inventory to packaging and delivery.” The new company will be called JP Toll.
The new company is being formed in an attempt by Japan Post to reposition itself to capitalize on demand for logistics services, which are on the rise in the island nation. The postal service does not anticipate growth in its two financial subsidiaries, Japan Post Bank and Japan Post Insurance, apparently due to an environment of low interest rates.
Japan Post bought Australian Toll Holdings in 2015 for around US$5.5 billion, during which time the latter company was struggling financially. The Japan Post booked an impairment charge of more than US$3.5 billion for the year through March 2017, which resulted in its first post-privatization net loss. The following year, it returned to profitability.
According to the Ministry of Land, Infrastructure, Transport and Tourism, the number of parcels delivered in Japan grew 5.8 percent to 4.25 billion year-over-year in March – its third year of increase.
Yusen Logistics UK has been awarded a contract with Spirit AeroSystems Ltd. for warehousing, inbound freight and onward distribution to Airbus, one of Spirit’s largest customers.
Spirit AeroSystems designs and builds aerostructures in both the commercial and defence sectors, offering global solutions with sites in North America, Europe and Asia. Within Europe, Spirit is one of the largest airframe suppliers to Airbus and a key supplier of major wing structures to both Airbus and Boeing programs.
Yusen will provide inbound ocean and air freight solutions to Spirit’s UK hub for onwards delivery of key materials to Airbus’ final assembly lines in Broughton, Toulouse and Bremen. This will include the distribution of products such as smaller replacement parts up to larger wing panels.
Nick Rees, commercial director for Yusen Logistics UK, commented, “We believe we have the expertise to deliver tangible savings and significant benefits to their supply chain and our operational team has relished the challenge of optimizing activities within this highly process driven environment and is already making good progress”.
Gulftainer, the world’s largest privately-owned independent port operator and logistics company based in the UAE, finalized a 50-year concession with the State of Delaware in the USA to operate and develop the Port of Wilmington, significantly expanding the company’s global footprint and reach. The agreement, signed by Gulftainer’s subsidiary GT USA, will see an expected investment of up to $600 million in the port to upgrade and expand the terminal and to turn it into one of the largest facilities of its kind on the Eastern Seaboard.
The port deal represents the largest operation ever run by a UAE company in the United States, as well as the largest investment ever by a private UAE company in the country.
The 50-year concession follows a year of negotiations and a thorough evaluation of Gulftainer’s capabilities globally, including in the USA, where it currently operates the Canaveral Cargo Terminal in Port Canaveral, Florida and provides services to the U.S. Armed Forces as well as the US Space Industry. The Delaware concession agreement completes a preliminary agreement between Gulftainer and the State of Delaware, as well as the completion of a formal review by the Committee on Foreign Investment in the United States (CFIUS), granting Gulftainer exclusive rights to manage the Port.
Gov. John Carney, Governor of the State of Delaware, said, “This historic agreement will result in significant new investment in the Port of Wilmington, which has long been one of Delaware’s most important industrial job centers. For decades, jobs at the Port have helped stabilize Delaware families and the communities where they live. I was proud to help make our partnership with Gulftainer official today, and I want to thank members of the General Assembly, the Diamond State Port Corporation, Gulftainer, and all of our partners who have helped make this agreement a reality.”
Gulftainer plans to invest up to US$600 million in the port, including $400 million on a new 1.2 million TEU (twenty-foot equivalent units) container facility at DuPont’s former Edgemoor site, which was acquired by the Diamond State Port Corporation in 2016.
Badr Jafar, Chairman of Gulftainer’s Executive Board, said, “Since Gulftainer’s entry into the US through our operations in Port Canaveral in 2015, we have discovered major untapped potential in this sector and we will continue to look for attractive investment opportunities in the region.”
H.E. Yousef Al Otaiba, UAE Ambassador to the USA said, “The UAE and US have a strong, vibrant investment relationship that delivers meaningful and measurable benefits to businesses, and creates jobs in both countries. Gulftainer’s investment in the Port of Wilmington is a perfect example of this important economic partnership. This deal will create new jobs in Wilmington and generate additional economic benefits to other communities across Delaware.”
Plans for the Port also include development of all cargo terminal capabilities at the facility and enhancement of its overall productivity. Gulftainer will also establish a training facility at the development site specifically for the Ports and Logistics industries that is expected to train and upskill up to 1,000 people per year.
The Port of Wilmington opened in 1923, and is a fully serviced deep-water port and marine terminal strategically located on 308 acres at the confluence of the Delaware and Christina Rivers. It is the top North American port for fresh fruit imports into the USA and has the largest dockside cold storage facility in the Country.
The relationship between the US and UAE has long been underpinned by a shared commitment to promote strong trade and investment ties. In recent years total bilateral trade between the UAE and US has grown from approximately $5 billion in 2004 to over $24 billion in 2017. The US had a $15.7 billion trade surplus with the UAE, its third largest trade surplus globally.
Starting October 30, low-cost airline Air Arabia will be subsidized to link Tangier with four other Moroccan cities.
Recently, the Tangier-Tetouan Al Hoceima Regional Council approved four partnership agreements for the establishment of direct flights connecting Tangier to Agadir, Marrakech, Fez and Nador, a city in northeast Morocco.
The members of the council unanimously approved the agreements, which involve the region’s council, Air Arabia Maroc, and the regional councils of Souss-Massa (covering Agadir), Marrakech-Safi, Fez-Meknes and eastern Morocco (covering Nador).
The agreement spans a three-year period (2018-2021).
The agreements commit an annual expenditure of nearly MAD 25.68 million to offer plane tickets of no more than MAD 300.
The agreements aim to reinforce Tangier’s air connections to other regions of Morocco to promote the economic, social, and tourist development of the region.
According to Maghreb Arab Press (MAP), the agreements also seek to develop the tourism sector and create job opportunities in the region.
Tangier and Agadir’s councils provided a budget of MAD 6 million to subsidize Air Arabia’s weekly flights.
The Tangier-Marrakech flight required an MAD 9.6 million subsidy. Both regions financed the agreement. The company will offer three flights per week.
The Tangier-Fez flight will operate twice a week and received an MAD 4.92 million subidy.
The Tangier-Nador flight will also operate twice a week and receive an MAD 5.16 million subsidy.
According to MAP, the agreements stipulate that ticket prices, which are set to the benchmark price of Brent oil ($60), may be increased with changing oil prices. Each 5 percent increase in the price of oil will allow a 2 percent increase in the ticket price.
Air Arabia Maroc, headquartered in Casablanca, is a member of the Air Arabia group. It was launched in April 2009. The airline is Morocco’s leading low-cost carrier (LCC).
In June, Air Arabia Maroc added a new round-trip domestic service connecting Casablanca and Nador. The airline opened its first Moroccan domestic flight connecting Fez and Marrakech in June 2017.
According to the latest data, Dubai International Airport has recently a new record, with the total number of travellers passing through its terminals hitting 8.37 million in August.
DXB welcomed six new scheduled passenger airlines in 2017, while home-based carriers Emirates and flydubai added 3 and 10 new passenger destinations and increased frequency/capacity on 31 and 22 routes, respectively.
The visitor numbers recorded about two months back surpassed the previous year’s data by more than 100,000 passengers.
In August last year, the airport served 8.23 million travellers.
A ranking by Airports Council International showed that Dubai continues to stay ahead of the pack in terms of passenger traffic.
Nearly 90 million people passed through Dubai International in 2017, up by 5.6 percent from a year earlier, making it the busiest hub for international travel for yet another year.
Paul Griffiths, CEO of Dubai Airports, said the latest data showed that Dubai International has achieved another milestone.
“It’s another milestone for Dubai Airports as we continue to break records and set the bar even higher,” he said.
The airport has just celebrated its 58th year in the aviation industry. Since it opened its first runway last September 30, 1960, the airport has served more than 900 million flyers.
Griffiths said the latest passenger numbers “speak volumes” about the airport’s growth.
India continued its domination run as the single largest destination country for DXB with 12,060,435 passengers in 2017, up 5.4% compared to 11.44 million in 2016. G
“Our aim is to continue pushing the boundaries on experience and provide customers with the best possible service,” said Griffiths.
“We are making progress on the front as well with shorter queue times, world-leading [food and beverage] and retail and other touches like spas, swimming pools and trampolines that help us stand out from the crowd,” he added.
High traffic volumes averaging 7.35 million passengers per month throughout 2017, including the record months of January, July and August when traffic breached the 8-million passenger mark, propelled passenger throughput.
India topped the list of destinations for travellers passing through Dubai International, recording a total traffic of 1,012,124 in August.
Saudi Arabia came second with more than 613,000 passengers, followed by the United Kingdom with more than 603,000.
Qatar Airways grew its cargo revenue by 34.4 percent to QR8.59 billion (US$2.36 billion) from April 1, 2017 to March 31, 2018, according to the airline’s annual report for the fiscal year 2018.
Overall, the Qatar Airways Group generated a total revenue of QR42.2 billion ($11.6 billion) for the financial year, an increase of 7.22 percent, but made an overall loss attributable to the owners of QR252 million (US$69.2 million), compared to a profit of QR2.79 billion ($767 million) in fiscal 2017.
Akbar Al Baker, Group Chief Executive, Qatar Airways, said that this was the most challenging year in the airline’s 20-year history, with the weaker performance directly attributable to the severing of diplomatic relations with Qatar by several countries including neighbors Bahrain, Saudi Arabia and the United Arab Emirates from June 2017.
The cargo division appeared to be unaffected, having carried 1.36 million tons for the year, representing a year-on-year growth of almost 18 percent. Cargo capacity grew by almost 14 percent.
Qatar Airways Cargo is now the second-largest international air cargo carrier. From April 1, 2017 to March 31, 2018, two Boeing 747-8Fs and a 777F joined the fleet.
Including two new 777Fs that were just recently delivered, Qatar Airways Cargo now operates a freighter fleet consisting of eight Airbus A330-200Fs, two 747-8Fs and 15 777Fs.
During the financial year, the carrier launched freighter services to London Heathrow, Phnom Penh, Pittsburgh and Yangon, and increased capacity to the main hubs of Hong Kong and Luxembourg.
The completed rollout of freighter centralized load control and fully digital ramp handling across the entire freighter network resulted in a 30 percent improvement in on-time performance compared to fiscal 2017.
Overall, Qatar Airways launched 14 destinations in fiscal 2018 to offset the loss of 18 regional destinations in Bahrain, Egypt, Saudi Arabia and the UAE. The airline also took delivery of seven A350-900s, one A350-1000, two A380s and seven 777-300ERs, according to the annual report.
Emirates SkyCargo has announced that it has transported the one millionth Unit Loading Device (ULD)* through its bonded corridor trucking service connecting Dubai International Airport (DXB) and Dubai World Central (DWC). The trucking service allows for rapid connection of cargo between Emirates’ passenger and freighter aircraft.
Emirates SkyCargo launched the trucking corridor in April 2014, when the air cargo carrier first commenced freighter flights from Dubai World Central. A fleet of 49 trucks, including 12 refrigerated trucks for temperature sensitive goods, link cargo between the two airports on a 24*7 basis.
Emirates SkyCargo facilitates global trade by connecting cargo across 160 international destinations through its hub in Dubai where it has two state of the art Emirates SkyCentral cargo terminals. Cargo arriving in Dubai often need to connect from passenger flights to freighters or vice versa for their onward journey.
The movement of cargo between the two airports is achieved seamlessly through the bonded trucking service with a transit time of 4.5 hours between the arrival of goods on freighter aircraft to their departure from passenger aircraft and vice versa. Quick transfer of cargo from the trucks is ensured by the availability of 40 loading and unloading docks at the Emirates SkyCentral cargo terminals.
“Emirates SkyCargo is the only air cargo carrier to operate a two-airport cargo hub capable of handling close to 3 million tons of cargo in a year. Our fleet of 49 trucks function similar to a continuously rolling conveyor belt allowing connection times of 4.5 hours between cargo arrival at one airport and departure from the other, thereby effectively integrating two airports into a single hub,” said Henrik Ambak, Emirates Senior Vice President, Cargo Operations Worldwide. “Moving one million ULDs through Emirates SkyCargo’s bonded virtual corridor in just four years is a testimony to the critical importance of this service to our total offering,” he added.
Over the last four years, the trucking service has helped connect more than one million ULDs over more than 272,000 trips between the two airports. A total of over 1.2 million tons of cargo, ranging from temperature sensitive pharmaceuticals and perishables to luxury cars, has been shuttled by the fleet of trucks. The fleet of trucks are maintained and operated by Allied Transport Company, based out of Dubai South, on behalf of Emirates SkyCargo.
“In order to ensure the safety of cargo in transit, all the trucks in the fleet are equipped with satellite tracking and operate in a pre-determined geo-fenced route between the airports. The operation of the trucking service, which carries close to 1,000 tonnes of cargo every day, is planned and monitored round the clock by a dedicated team. The trucks are also fitted with tamper-proof locks for each journey, verified by Emirates Group Security and Dubai Customs, providing an additional layer of security of transit shipments,” commented Percis Paghdiwalla, Emirates Road Feeder Network Manager.
Every day, Adrien Thominet is up at 5 am. First, he checks emails from their offices in countries with significantly different time zones as France where he is based so that to his words, “catch them before their day is finished.”
Thominet is no ordinary CEO. He leads the ECS Group, one of the largest GSSA companies in the world with 69 subsidiaries and 137 offices in 47 countries. The company handles about 2,500 tons of cargo every day for different airlines serving different cities and airports.
It’s a tough job that needs methodical and time-tested sophisticated system to ensure a seamless process to deliver what is expected of the company in the competitive air freight industry.
After spending about an hour answering emails, Thominet says he reads the news online, do an hour of cardio or resistance training or walk his dog, Jean-Luc.
“My normal morning begins very early, usually around 5 am, checking emails from countries in significantly different time zones hoping to catch them before their day is finished. After spending an hour on email, read most of the news online, I do an hour of either cardio or resistance training each morning,” he said. “Sometimes I bring my dog, Jean-Luc, along.”
Working out and waking up early on a regular basis gives Thominet more than enough energy to carry on with his day, more importantly, spend time with his four children no matter how busy he may be.
“Waking up early allows me to get my four kids ready for school and drop them off, and still get to work by 8:30 in the morning. Spending time with my kids is precious as it brings me energy for the whole day,” the CEO said.
Describing his children as his “breath” that sustains his life, Thominet says he cherishes the time he spends with them and make up for whatever is lost during his business trips.
“And regarding my way to unwind…the time I spent with my kids is very cherished and non-negotiable. They are my breath. And because you cannot accomplish great deals without refocusing on yourself, I save some rare but precious time, doing nothing but being happy. I wish I could have some more,” he said.
At work, Thominet plans for his business trips to meet prospects, airline partners or local ECS teams. The company has more than 1,000 employees all over the world.
“More than 1000 employees are working for our company. It’s more difficult to keep tabs on employees when you run a global enterprise in several time zones. That’s no excuse for not making the effort. It’s the only way, to feel firsthand what is happening in different parts of the company,” he said.
As time could be their friend or foe, Thominet says he prepares the company’s activities for the next 18 to 36 months with the help of ECS Group Board Chairman Bernard Schmoll.
The two executives treat their employees like family, guiding and directing them for future growth and opportunities.
“We are like a family and being CEO is a job I take very seriously. It would be a lie to say that I’m always confident. We cannot fail. Success is the guarantee of the good health of each of us. I am not alone and we are all working for that. As of today, everything ties hand in hand perfectly,” Thominet optimistically said.
Opportunities in the Indian apparel industry should have a direct bearing on the logistic business in this region. In this regard, one of the biggest windows of opportunity is that various state governments are coming up with special apparel policies aimed at attracting investment in their states, especially in the remote and underdeveloped areas. -Chandrima Chatterjee, Advisor, Apparel Export Promotion Council, IndiaGlobal trade volumes dramatically increased in 2017, its highest over the past six years, reversing a slowdown in the transport sector performance, including logistics.
World transport exports grew by 9 percent during the period, positively impacting the maritime, air freight and land sectors, which a year ago saw a double-digit decline.
China, India and Singapore were the leading traders in commercial services in 2017 with combined commercial exports totaling close to US$600 billion in 2017, according to the World Trade Organization (WTO).
The healthy global trade exports fueled growth in the apparel or garment sector which for two years had stagnated. India as the 9th largest player in merchandise trade, with apparel as an important component, benefitted signifi-cantly with the development, and its logistics chain, for that matter.
“Opportunities in the Indian apparel industry should have a direct bearing on the logistic business in this region. In this regard, one of the biggest windows of opportunity is that various state governments are coming up with special apparel policies aimed at attracting investment in their states, especially in the remote and underdeveloped areas,” says Chandrima Chatterjee, Advisor, Apparel Export Promotion Council, India.
Chatterjee says the states of Jharkhand, Uttar Pradesh, Odisha, Telegana, Andhra Pradesh and several others have come up with very attractive incentives for investors to set up garment or apparel factories within their localities.
Attractive wage subsidies, plug and play options for minimizing risk of new investment, capital and interest subsidies, as well as support for development of common facilities are some of the benefits that the industry has offered, Chatterjee adds.
The Indian international apparel industry is valued at US$17 billion with domestic market about three times bigger with its over 1.3 billion consumers.
Chatterjee said the country’s apparel industry has responded positively to those incentives and several new investment plans are now in the pipeline for expansion in the said states.
Better logistics for growth
Experts say the ease of moving garment products in and out of India will determine the growth of the industry with speed and efficiency considered major factors in its success.
Changing consumer dynamics and a very competitive retail landscape has led to reduced lead times for new products, thus, time is of essence in making a profit.
In response to both the changing fashion calendar and the emphasis on staying in step with customers’ interest, several brands are releasing more collections throughout the year.
Fast-fashion brands like Zara — which releases new items four to five times faster than traditional retail brands, have led to the shrinking of the overall market lead times by 30% to 50%, according to experts. This requires matching increase in agility in the supply chain from supplying countries like India.
An important element in having an efficient supply chain is, of course, the time taken in the movement of goods.
Chatterjee says India has several bottlenecks in this regard – from limited berthing options for mother vessels to the procedural hurdles. However, she said systemic improvements in the procedural issues are being worked upon to reduce the shipment time.
From reduced documentation, gradual shift to digitalization and online documentation, reduced physical interface, etc., India’s improved ranking in Ease of Doing Business is today visible in several areas.
A very important development in this area has been the Authorised Economic Operators program (AEO) program. In 2016, as a part of the trade facilitation measure, this program was introduced for all importers and exporters to align Indian trade systems with the World Custom Organisations (WCO) Safe – Framework for Standards, to enhance inter-national supply chain security through validated and robust systems.
This program facilitates the AEO holders to have significantly faster movement of goods through international borders through reduced checking and validation processes.
Another factor that can drive the growth in logistics sector is the rapid growth in the e-commerce retail market. E-commerce is growing at a rapid pace in most of the regions due to increasing penetration of the Internet and mobile devices. Key factors leading to the operational success of this sector are efficient inventory management and quick delivery. The growing demand for e-commerce has led to an increased need for improved efficiency in delivery systems, inventory management, and freight forwarding.
The above trends in the apparel industry are some of the major opportunities that have opened up for enhanced and efficient trade movements from India, Chatterjee pointed out.
“The Indian apparel sector is at an important cross road today. On one hand it is witnessing opportunity by way of the predominant player— China vacating some top apparel categories, where India can increase its exports. On the other hand, the industry is grappling with competitiveness issues. Support from an efficient logistic industry can take the apparel growth story in the right direction in the years to come, as supply chain efficiencies can be an important differentiator in this highly competitive market,” she concluded. -Vasujit Kalia
Technology has made the world smaller and faster.Real time communication with people from all over the world at different time zones through phones and gadgets
