UAE Economic Growth Boosting Logistics Sector

Sultan Ahmed Bin Sulayem, the DP World Group Chairman and CEO has issued an optimistic forecast fot the country’s sector, on the back of rising trade and economic growth in the UAE. He believes that recent growth forecasts for the UAE will bring uplifting prospects for the country’s logistics, warehousing and handling sectors.

UAE trade growth is expected to rise by 4.3 percent year in 2017, driven by a 5 percent growth in imports and 3.7 percent growth in exports . The report sees a good economic growth over the next five years for the UAE due to government plans to diversify the economy through the development of trade, tourism and the service sector.

This will attract more businesses and job opportunities to the country who will need logistics support.

Presently there are 328 logistics companies operating within Jafza (Jebel Ali Free Zone) with trade partners in GCC, India, Africa, West Asia and China broadening the opportunities for logistics companies. The location of Jebel Ali Port and the Free Zone with a range of incentives and mordern warehouses supports the development of logistics and transport sector with companies aiming to reach their target markets in the greater MENA Region.

These companies let 4.2 million square meters of mixed-use facilities, having 4.13 million sq m as land; 85,700 sq m of warehouse and light industrial units , and showrooms and offices of 1,600 sq m .

Some key trends identified in UAE logistics industry are:

Growing domestic demand ,Economic diversification, and development of export oriented industrial centres and free zones are likely to support both transhipment and regional trade growth.

Transportation infrastructure development and new technology solutions will probably strengthen the infrastructure required for the multi-modal transportation system

The GCC rail network and the airport expansion will strengthen alternate mode for freight and cargo transportation

Dubai’s 14 per cent GDP constitutes logistics industry which is highest amoung all emirates. The geographical position and improved infrastructure of dubai facilitate a substantial share of international shipments directed to the UAE.

“The studies reveal that these will open up new markets for companies operating in Jafza and Dubai”.


Indian Logistics Industry to Experience Higher Investments

Indian logistics industry will be having higher investments with the passing of industry tax reforms and advancement in technology.

Advancement in digital technology will create great opportunities for logistics technology developers,supply chain and logistics transformation team.

The Government of India’s strong prominence on manufacturing and initiatives such as “Make in India” is boosting domestic production, which is strengthening the logistics industry. Concerted efforts are done by logistics company to keep pace with this growth by digitizing their solutions and offering online freight services.

This will provide visibility across the supply chain and transform it to an organized industry. Some of the advanced technologies adopted include automated storage and retrieval systems (ASRS) in warehouse and transportation, radio frequency identification (RFID) in place of bar codes, and global positioning system (GPS) for real-time tracking.

“In addition to modernization the digital wave, Indian logistics companies are in the way of change in the transition from indirect taxation to goods and service tax (GST). The simplified tax structure benefits the warehousing industry and logistics costs will be reduced by up to 2.5%,” said Senthil Kumar Subbiah, Research Analyst, Supply Chain & Logistics Transformation Practice, Frost & Sullivan. “This tax change, along with land and labor market revising, will improve the efficiency of both transportation and freight forwarding.”

LOGISTICS & TRANSPORTIndian Logistics Industry – Growth Insights and Forecast to 2020 is part of the Supply Chain & Logistics Transformation team’s Growth Partnership Subscription. According to the study, investments in infrastructure development across all modes of transportation,implementation of GST,relaxed foreign direct investment regulations, and increased technology adoption are altering the Indian logistics industry.

Meanwhile, the increasing inflow of international logistics service providers (LSPs) are prompting third-party logistics (3PLs) and domestic LSPs to expand their focus on transportation service, warehousing and freight forwarding. This will open up opportunities for partnerships, and domestic logistics companies will have access to the modern technologies introduced by global service providers.Indian logistics services will greatly benefit from the development of transportation and logistics-related infrastructure, such as dedicated freight corridors, logistics parks, free-trade warehousing zones, port modernization, and container freight stations.

“Another major influence on the logistics industry is latest technological advances as like the ubiquitous of smart phones and internet, and the consequent rise of e-Commerce. As more than 30% of the Indian population resides in tier II and tier III cities, e-Commerce sites receive more orders from these cities,” noted Subbiah. “To provide better services to customers, e-Commerce firms who are demands bigger and more efficient warehouses, faster delivery options and improved last-mile connectivity, which translates to a plethora of business opportunities for 3PL companies and logistics startups.”LOGISTICS & TRANSPORT

Overall, LSPs are leveraging technologies such as Big Data and cloud-based application platforms for better order fulfillment and tracking of shipments. The modernization of logistics infrastructure field and government support will go a long way in advancing the Indian logistics industry.

There are various academies providing trainings in logistics in kerala


Expansion of Opportunities in Cargo Sector

In the fields of airport operations, airport engineering construction, cargo management, airport finance, airport commercial, land management, HR management and aviation law human resources have to be constantly upgraded. An increase is observed in hiring of direct staff including pilots, engineers, cabin crew, ground staff, airport staff, air cargo, maintenance, repair and operations and air navigation staff. More demand is expected in management and operations profile. Liberalization of the economy, De-regulation, Open sky policy and Public-Private Partnerships has boosted the air traffic movements. Airports are seeing rapid expansion and modernization.

logistics and supply chain management institute in kochiThis sector is expected to bring a large amount of employment opportunities in the coming 2-3 decades but along with it, emerges the bigger challenge of requirement of highly skilled aviation professionals. Skilled manpower requirements are estimated to increase to 30000 from 20000 for airports whereas for airlines the rise is estimated from 62000 to 117000. Requirement for ground handling, flight catering, aviation security and other related areas will treble from 90000 to 270000. RK Srivastava, the chairman of Airports Authority of India said that there would be hiring at airports as well. The Narendra Modi government aims to set up low cost airports. It will be around 200 in number. It is established to facilitate air travel to smaller towns, according to the economic survey. The government has modernized 33 existing small airports, expanding their passenger terminals and lengthening runways.

logistics and supply chain management institute in kochiThere are various academies to train students for logistics and supply chain management institute in kochi. Various courses are there to train executives in air cargo management. They are trained to handle and process air cargo. Also they are taught about cargo management at airports, import export cargo handling procedures, cargo capacity of aircraft, effective warehousing management. Short duration programs are included to serve executives for their professional and skill development. The development and expansion in the Indian air cargo sector has resulted in tremendous opportunities for training and employment in this sector as both the government and private sectors have come at forefront with a positive approach.


International Standards as Benchmark in Transport and Transshipment

Dubai flower center, a multistory facility located next to the Dubai cargo village is one of the most advanced cold storage. It is specially designed for storage of flowers. It is designed for processing of flowers imported primarily from Africa for both the local market and for distribution to the region. The initial stage for this center was designed for an annual throughout of up to 180000 tonnes of flowers. The perishable handling area in Dubai cargo mega terminal is about 4623 square meters floor space with 3927 square meters of 218 individual cells of temperature zones. Narobi is another airport having a pair of on-airport refrigerated storage facilities operated by the ground handling subsidiary of Kenya Airways, as well as a standalone cold storage operated by DHL on the airport and Swiss port off the airport.

 INTERNATIONAL DIPLOMA IN LOGISTICS & TRANSPORT

Changi terminals offers dedicated care in perishable handling facility that is temperature monitored and humidity controlled to cater different types of requirements and a wide range of commodities. When we consider the case of India it is a long way to go as it has just stepped into this. In dealing with the perishables it is at nascent stage of growth in the Indian air cargo sector when it is compared to international scenario. There are many sectors where the Indian market really needs to buck up.

India has the potential to become one of the world’s great air cargo centers. A population of more than 1.2 billion, rapid growth of international trade and huge manufacturing engine all bode well for the industry. But whatever the reason, it is unknown that India has not realized this great potential. It is agreed by the participants that inadequate infrastructure in the country is a major obstacle followed by the cost inefficiencies and the need for governmental and tax reforms. In 1960 the per capita income of Singapore at purchasing power parity was two and half times India’s. In 2010 it was 15 times richer. This a country which handled 531 million tonnes of cargo in 2010 with only 276 square miles area having a little beyond a good harbor in 1960. INTERNATIONAL DIPLOMA IN LOGISTICS & TRANSPORT

In airports of Dubai and Hong Kong bulk of their cargo is transshipment cargo which does not have to undergo customs clearance unlike in India where the transshipment component is an insignificant proportion of the total throughput handled. So comparison of dwell time of Indian airports with hub airports like Hong Kong, Dubai etc are not realistic. Indian airports must transform to international cargo hubs. They can adopt more systematic approach, observe international standards adopted at airports to achieve this. This is possible only if government and industry work together. It is evident that the future is bright for the air cargo sector. For developing the cargo hubs infrastructure and airlines have a great role to play. We have to translate ideas into action. Government look forward for ideas from the industry players to work together. But we need to look at the prevailing challenges in order to begin with a change.  INTERNATIONAL DIPLOMA IN LOGISTICS & TRANSPORT


GERMAN CARGO HUB EYEING ASIAN MARKETING

    In Germany there is over thirty commercial and cargo airports and number of smaller airfields and airstrips are for business and general aviation. Millions of passengers are served by Frankfurt and Munich a year. Small airports in medium sized cities serves about 220 thousand passengers. Lepzig-Halle airport is the largest hub for express cargo in Germany. DHL’s European hub has significantly contributed to the growth of airport for almost nine years.

Logistics & Shipping Management Course in Kochi
    Mario Patyk, head of business development, Mitteldeutsche airport holding said that they are increasingly successful in niche markets such as freight charter traffic and the handling of heavy duty and oversized shipments and large animals. Lepzig Halle airport provides 24/7 operation of cargo flights. This is possible because of the parallel runway systems, ideal accessibility by road, rail and air and potential building areas. Many customer benefits are provided by Lepzig-Halle airport. Bundled logistics facilities, initiatives of regional logistics players and international flight network are some among them.
The main thing which attracted business was the establishment of the European DHL hub. Three percent increase was observed in landing and takeoff. Volga Dnepr group is partially responsible for the increase in tonnage of general cargo. The cargo service includes air freight, warehouse and documentation, road feeder services, truck and charter handling, animal and perishable, pharma operators etc.
Patyk said that they are expecting significant increase in Asia market. The growth in export volumes from Germany to China will enhance the expanding of Asia market. They said they have much hope in export expansion in India too. Lepzig-Halle airport is the second largest air cargo hub. In 2015 they handled a record volume of 88336 tones which was 10.1 percent increase from 2014. Logistics and Shipping Management Course in Kochi


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