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Following the global success of their predecessors, the Middle East is producing a new generation of 3PL company with ambitions for market domination

.Capitalising on the Middle East logistics industry's unprecedented growth, companies such as Aramex, Gulf Agency Company (GAC) and Agility have successfully evolved from small-time players into global powerhouses, competing with the biggest names in the world. To realise their dreams, of course, has taken a skilful combination of industry foresight, entrepreneurial spirit and cust-omer understanding, which are factors these companies have proudly displayed in abundance.

In addition to the obvious benefits on their bottom lines, the success of these forefathers has also paved the way for future generations to walk down a similar path and emerge as the region's latest success story. Although competition is fierce, and becoming fiercer thanks to the global recession, the latest entrants in the Middle East 3PL sector have the unconcealed confidence that is paramount when it comes to thriving under pressure.

Liberty Logistics, for example, has sky-high ambitions to climb the logistical ladder and establish its own niche amongstthe industry's biggest players. The foundations have already been laid, with a 110,000m² warehousing depot being constructed in the Saja'a industrial area, near Sharjah International Airport, which will be followed by additional facilities in Abu Dhabi and Dubai.

"We want to create a logistics company that will easily be amongst the top five operators in this region," states David Scott, senior general manager of parent entity Liberty Investment Company's logistics and cargo division. "There is no limit to how big this business could become. We already have the support and the funding, so the coming years will be a very exciting period indeed."

Liberty Logistics has forecast a sales turnover of US$68 million this year, seemingly unfazed by the onset of a global recession. "With the global downturn affecting Dubai, we expect the volumes of airfreight to somewhat reduce, although the volumes of sea freight and sea-air will increase significantly. With this in mind, we have a skilled team onboard who will specialise in the sea-air and transhipment business, focusing on Africa, Europe and the USA," says Scott.

"As logistics is among the fastest growth sectors in the world, the next few years will see Dubai's stature as a logistics hub rising dramatically. At Liberty Logistics, we are fully geared to take advantage of the growth opportunities this scenario presents," he adds.

Facing intense competition from similar companies that have recently been established, not to mention a number of industry veterans, Scott believes only the strongest will survive and a number of smaller players in the UAE will eventually terminate their operations. "There are over 2000 freight forwarders in Dubai now and 75% of them operate from a mobile and a briefcase.

There are too many poor performers that damage the reputation of the UAE as a regional logistics hub by failing to deliver," he says. "Freight moves from around the world and a lot of competitors contract the most important part of the supply chain, which is the delivery to customer, to third party providers who have service levels not acceptable to the main business community. To be better than your competitors, you must control the final delivery to clients or you just become one of the general groups of freight forwarders who offer nothing special."

Determined not to fall under the wayside, Momentum Logistics was established at the end of 2008 by Sharjah-based port operator Gulftainer, which has invested around $275 million to develop the brand on a global level over the next seven years.

"In light of the current global situation, we believe that the need for dedicated logistics companies in the region is greater than ever," states Matthew Derrick, general manager of Momentum Logistics. "We also believe that exceptional service within this field will be an important distinguishing aspect for Momentum Logistics, as we prepare to take standards of service and communication to the next level."

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