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ME contract logistics to expand 33pc by 2017

DUBAI, April 18, 2015

The contract logistics sector in the Middle East region is poised to expand 33 per cent by 2017 – an average of 7.5 per cent a year, according to a report ahead of a key industry summit in Dubai.

Sheikh Ahmed bin Saeed Al Maktoum, the president of Dubai Civil Aviation Authority, chairman of Dubai Airports and chairman and chief executive of Emirates Airline and Group, will be opening the two-day conference of FIATA, the global body of freight and logistics industry, at the InterContinental Dubai Festival City.

Alongside this another event, the Region Africa and Middle East (RAME-2015), being held under the patronage of Sheikh Ahmed, will get underway. It will be attended by over 500 delegates from the Africa and Middle East, India, Pakistan, Sri Lanka and  Bangladesh.

UAE’s National Association of Freight & Logistics (NAFL) is hosting the RAME-2015 for the International Federation of Freight Forwarders Associations (FIATA) of which it is an affiliate body.

The conference is based upon the Trade Corridor that exists between the Indian Subcontinent and Africa, via the Middle East, and in particular Dubai and the UAE. DP World, Emirates, Dubai World Central, Jebel Ali Free Zone Authority (Jafza), Dubai Chambers,  Etihad Airways, Freight Systems, TT Club and Newage are among the sponsors.

Leading regional giants will discuss the current status of the freight and logistics industry in the Middle East and Africa regions and chalk out its future road map at a two-summit which opens on Sunday (April 19) in Dubai, UAE.

A stellar line-up of speakers from the region and overseas will utilise the event to highlight the synergies and business potential that exist in these two regions and how other countries could benefit from them, from a shipping and logistics perspective.

Top industry officials including Sultan Ahmed bin Sulayem, the chairman of DP World, Atiq Juma Faraj Nasib, the senior VP for Commercial Services at Dubai Chamber of Commerce and Industry, Yousef Al Hashemi, the senior manager of Dubai Customs, Joseph Atonga, the CEO of Kenya Ports Authority, Zunaid Pochee from Trans Kalahari Corridor Secretariat in Namibia, Adil Al Zarooni, the senior vice president –Sales at Jebel Ali Free Zone Authority (Jafza), Mahmood Al Bastaki, the CEO of Dubai Trade, and Mohsen Ahmad, the VP of Logistics District at Dubai World Central (DWC) will address the gathering.

The other speakers are: Philip Wyllie, the consultant at the South African Association of Freight Forwarders (SAAFF), Francesco Parisi, the president of FIATA, Issa Baluch, the honorary board member, FIATA;  Stephen Karingi, the director, UN Economic Commission for Africa (UNECA), Tushar Jani, the chairman of SCA Group, Babar Badat, the senior VP of FIATA, Christian Juul-Nyholm, the managing director of Maersk Kanoo (UAE) and Anshuman Singh, the CEO of Futuregroup India.

Experts pointed out that the Middle East was ‘filling a gap’ for Africa, Central Asia, India and Pakistan, which have fast-growing consumer markets and local production but lack adequate transport infrastructure, storage and services.

Transport Intelligence (Ti), a leading research house, has estimated that the growth in freight forwarding in the Middle East will be stronger - 7.8 per cent annually until 2017. 

The sector is on a growth trajectory and is witnessing the mega trends that would help establish it as a prominent logistics hub.

The GCC benefits from two unique opportunities - strong growth of volume in the trade lane between Europe and Asia and steady growth and development of manufacturing activities.

They said Saudi Arabia, the UAE and Oman will remain the biggest market contributors (a combined 85 per cent share) to the value of the GCC logistics sector, especially thanks to Dubai’s successful bid to host World Expo 2020.

They said Dubai has allocated a total of Dh31.7 billion to build and develop its infrastructure and improve its logistics facilities in the run up to the Expo, with between Dh7 and Dh8 billion dedicated to building new infrastructure and upgrading existing ones.

The UAE’s phenomenal growth complements the expansion of the entire Middle East where international cargo demand is expected to witness 4.9 percent increase by 2016, the experts added.

According to a Frost & Sullivan study, the UAE logistics market valuations are expected to touch a staggering $27 billion in 2015, driven by an increase in import and export trade volumes and upward trends in local manufacturing.

Analysis shows that economic growth across FMCG and automobile sectors will also escalate demand for logistics services in the UAE, it added.-TradeArabia News Service




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