Posted inTransport

Express logistics

We analyze some of the biggest industry players during the past 12 months.

We analyze some of the biggest industry players during the past 12 months.

Company:DHL
Category:Express Logistics

Towards the end of 2006, DHL outlined its ambitious strategy to establish a larger footprint in the Middle East and diversify its product offering for customers throughout the region. Twelve months later, and despite increased competition in express logistics, the international heavyweight has surpassed its annual growth targets and reinforced its market position in the Middle East.

“We’re ideally placed to keep abreast of this growth and continue to provide the best range of products available in the industry,” says Dave Spargo, area director of DHL Express Middle East.

The company has operations in 15 countries throughout the region, offering a variety of different services through the DHL Express, DHL Exel Supply Chain and DHL Global Forwarding brands. These entities are connected to the group’s impressive global network, which includes around 220 countries throughout the world.

“We celebrated our 30th anniversary in the Middle East this year, which was marked by a visit from Dr Klaus Zumwinkel, CEO of our parent company Deutsche Post World Net,” says Spargo. “During his tour of the region, we announced plans to develop more than 250,000m2 of land in Dubai World Central Airport, which is testament to the Middle East’s growing status as a leading international logistics hub.”

DHL has supported its multi-million dollar investments in future facilities with additional funds allocated to the refurbishment and expansion of its existing distribution centres. Over US$60 million of further infrastructure investment is being planned for the region over the next five to ten years.

“The entire DHL team in the Middle East has worked incredibly hard this year, and these efforts were officially recognised during this year’s Supply Chain and Transport Awards (SCATA) in Dubai, where we received the award for Express Logistics Provider of the
Year,” says Spargo.

Web:www.dhl.com
Tel:+971 4 2995333

Company:Fast Express
Category:Express Logistics

Although it’s considered a relative newcomer in the express deliveries sector, Fast Express has quickly established itself in the Dubai marketplace, with a focus on the domestic and international delivery of time-sensitive and critical packages.

“Since our launch in 2005, we have experienced considerable success by targeting a number of industries, such as the financial, publishing and government sectors,” says Ahmed Abood Al Boasy, group general manager of Emirates National Group (ENG), the parent company of Fast Express.

“In particular, we received a positive response towards our bullet service in 2007, where critical shipments within Dubai are delivered in the space of two hours and shipments between Dubai and Abu Dhabi are delivered within three hours. We have also secured a number of agreements to provide surface and airfreight movements of heavy shipments, with our service including the handling of customs clearance at Dubai International Airport,” he adds.

After experiencing a significant level of growth in 2007, Fast Express has ambitious plans to establish new locations and service centres in the United Arab Emirates, together with other international markets. Earlier this year, following a cumulative growth of 25% in shipments from Abu Dhabi, the company opened two offices in the UAE capital, located in the industrial area of Musaffah and downtown Abu Dhabi.

“We are expanding our branch network to support the company’s future growth plans. The opening of the office in downtown Abu Dhabi has given Fast Express good visibility in the prime commercial area of the emirate. The strategic location allows us to better serve our existing and future customers,” says Al Boasy.

“On the other hand, the new Fast Express Mussafah branch targets commercial establishments based in the industrial centre. We have found significant growth in volumes in non-document shipments from Mussafah. The growth of bulk shipments was a key reason for us to establish a full scale presence here.”

Web:www.fastexpressuae.com
Tel:+971 4 2833448

Company:Empost
Category:Express Logistics

Empost entered a number of different markets this year, to complement its diversification strategy in the Middle East.

One of the company’s biggest successes in 2007 has been the launch of a cargo and logistics division, which offers a combination of airfreight, sea freight and land transportation services for customers in the United Arab Emirates.

“We are providing a range of specialised services through the cargo and logistics division, which are customised to meet the demands of customers in the region,” says Sultan Al Midfa, CEO of Empost. “There is huge demand for warehousing services in the United Arab Emirates and we’re determined to capitalise on this booming market in the coming months. By the end of 2008, we are planning to have a number of different facilities located in the UAE and other regional destinations.”

Empost expanded its value-added services by opening a packing and removals department, which specialises in the transportation of exhibition equipment, office relocations and household goods.

The company also entered the European market this year, with ambitions to target itself as a leading provider of customised courier services. “Europe has actively supported the growth of the courier and express services market, which has resulted in strong economic prospects for companies such as Empost,” says Al Midfa. “With this expansion, we now cover 225 destinations around the world, including the Americas, Europe, Far East, Indian subcontinent and the Middle East.”

Web:www.empostuae.com
Tel:+971 4 2860000
Company:FedEx
Category:Express Logistics

The regional growth of FedEx continued at full pace this year, with the express transportation company expanding its operations throughout the Middle East, including the United Arab Emirates, Saudi Arabia and Kuwait. In particular, FedEx has significantly extended its facility at Bahrain International Airport, with improvements to the distribution centre and five additional trucking routes introduced to meet growing customer demand in the Kingdom.

“The expansion signals the importance of Bahrain as a major trucking gateway for FedEx to neighbouring countries,” says Hamdi Osman, senior vice president of FedEx in the Middle East, Indian subcontinent and Africa. “More than 75% of employees within the FedEx operations are Bahraini nationals, and with the expansion to the facility and operations, the requirement for additional staff is also expected to grow.”

Such issues relating to human resources were placed high on FedEx’s agenda this year, with a focus on successfully increasing its workforce in the Middle East and motivating current employees in the region. As part of these efforts, the company launched new features on its country-specific websites covering the Middle East, including an innovative recruitment section that provides information on available positions at FedEx. Individuals can search for vacancies by position type or location, or sign up to receive email notifications about jobs as they become available.

“Our priority is to always provide a positive experience for visitors to the website, with users able to easily find the information they need. It is essential that we continue to review the services provided and enhance the site’s design and features as required,” says Osman. “FedEx is recognised as one of the best places to work across the region. The new careers section has provided an effective way for recent graduates or experienced professionals to apply for available positions at the company.”

FedEx also held its second annual Courier of the Year competition in June to acknowledge its employees in Dubai and Abu Dhabi, with customers encouraged to vote online for their favourite couriers. The winners – Eloi Oandasan in Dubai and Thomas Leo in Abu Dhabi – both received a cash prize from FedEx, together with an additional week’s holiday.

“An essential part of providing an excellent customer experience is to listen to your customers and their feedback. We believe there is no better independent judge of our courier’s professionalism, conduct and commitment to providing outstanding customer service ethic than the customers they serve,” says Osman. “Eloi and Thomas were both deserving winners of this recognition, and are true ambassadors of the FedEx brand. They embody the company’s commitment to outstanding customer experience and achieved the highest number of votes in their respective locations.”

In addition to internal awards, the company has experienced success from other sources in the Middle East. It was selected as the winner of the Environmental Awareness Award by Dubai Cargo Village during the summer, receiving its acknowledgement during a special ceremony at the Al Bustan Rotana Hotel in Dubai. “FedEx is committed to respecting and protecting the environment through outstanding environmental performance and efficient operations,” says Osman. “We are modernising our aircraft fleet and integrating business practices that reduce greenhouse gas emissions. We are also using and strongly support the development of alternate fuel vehicles. This award served as a crowning moment for all efforts the company has been exerting.”

Web:www.fedex.com
Tel:+971 4 2995484

Company:TCS Express
Category:Express Logistics

Although demand for courier services in the United Arab Emirates continued to flourish in 2007, the market has become increasingly competitive, with customers being offered a wide selection of services from regional and international players. Despite these challenging conditions, TCS Express has survived competition from the industry heavyweights and successfully maintained its market position in the country.

“Since its establishment, TCS Express has developed an enviable position amongst medium-sized courier companies in the United Arab Emirates,” boasts Jamil Janjua, CEO of TCS Express Worldwide. “We currently provide a range of international express and logistic services through partnerships with integrators around the world.”

The company’s Dubai branch began operations in 1997, bringing 14 years of experience from its parent organisation to the city’s congested streets. It connects all the seven emirates with an overnight service and promises a same-day service between Dubai, Sharjah, Ajman and Abu Dhabi.

Although 2007 was a healthy year for the company, Janjua reinforces his concerns for smaller players in the Middle East’s courier industry. “Profit margins for these companies are fast eroding and service performance is suffering from increases in the cost of business operations. We are a small company with big ambitions. However, companies of our size are worried about survival because the cost of doing business here is increasing. In such scenarios, it is often service that takes a back seat,” he says.

“Towards the end of 2006, I warned that issues such as increasing rentals and fuel prices, mandatory health insurance and the new labour laws coming into force are going to be extremely challenging to small and medium enterprises who want to continue doing business. These companies are the engine of growth to any economy, and stifling their growth is stifling the economy. It is therefore essential that courier companies of our size be allowed to operate within reasonable cost in order to make enough money to invest in delivering a top class service at affordable prices.”

Web:www.tcsuae.com
Tel:+971 4 2858556
Company:TNT
Category:Express Logistics

TNT secured a number of important contracts in the Middle East this year, including a lucrative deal with Mitsubishi Motor Parts Sales in the Gulf, the sole importer of Mitsubishi Motors in the region. Under the contract, TNT is responsible for the company’s VOR (vehicle off the road) deliveries, emergency orders and stock distribution requirements into the GCC, Levant and Egypt.

The logistics company also received a unique order from Showtime Arabia for the delivery of Sony broadcasting equipment. The consignment, which weighed ten tonnes, was delivered in less than seven hours to the UAE-based television network’s headquarters in Dubai Media City.

“These contracts are perfect examples of TNT’s efforts to provide a tailored service to customers in this region. We are confident about meeting the requirements of Mitsubishi Motor Parts Sales in the Gulf, because our economy express service is the fastest growing option for road transportation in the lower and middle Gulf countries,” says Martyn Wright, managing director TNT Express in the Gulf Region.

“Meanwhile, the Showtime delivery was managed through our special services department, which offers tailor-made solutions for unusual customer requirements, without restrictions in size, weight or global location. Since the Gulf launch of this division in 2004, it has become the company’s fastest growing service, with a two-fold increase in business,” he adds.

With a significant number of contracts being awarded to TNT Express, the company supported its growth in the Middle East by increasing its workforce throughout the region. This included the appointment of Andrew Watson as national operations manager in Bahrain and Mohannad Khayyat as country general manager in Kuwait.

“Our Bahrain business has been growing by more than 50% annual over the past few years, while Kuwait has seen a 30% increase in volumes annually. By employing people who fully understand our business, we will fulfil our clients’ rising expectations as their number one global logistics provider,” says Wright. “We also supported operations in Bahrain and Kuwait by rolling out modern communication units in both countries this year. The scanners help drivers to send and receive delivery information, which means customers are provided with realtime delivery and collection updates.”

Web:www.tnt.com
Tel:+971 4 2828892

Company:UPS
Category:Express Logistics

United Parcel Service (UPS) marked its 100th anniversary this year by announcing a number of incentives to increase its activities throughout the world, including the important Middle East market.

Its service offering was significantly expanded in the United Arab Emirates, for example, which meant customers were provided with increased options for the express delivery of packages to the world’s biggest trading markets.

“These service enhancements in 2007 have redefined our commitment to customers in the Middle East, offering them greater flexibility and choice to excel in a competitive business environment. The extra delivery options will enable companies to manage their shipments smoothly, with greater control and peace of mind,” says John Tansey, country manager of UPS in the United Arab Emirates.

“Our regional operations have also benefited from UPS’s international developments this year, such as the opening of ALPS (Airport Logistics Park Singapore), which has helped to connect Dubai with major trading markets in countries throughout the United States of America, in addition to Europe and Asia,” he adds.

Measuring 425,000 square feet, the ALPS facility has become a key operations centre for UPS, providing a range of air and ocean freight services, together with general warehousing and specifically services, including critical parts distribution, final kitting of products before distribution, returns and repair, and warranty management.

Another key development in 2007 was the opening of UPS’s latest express centre in Saudi Arabia. Located in Hail, the facility was launched by EIRAD, the company’s authorised service contractor in the Kingdom, to accommodate growing local demand for express deliveries. “The centre provides customers of any size with convenient and quick access to a range of shipping options for domestic and international shipments,” says Tansey.

Also this year, UPS maintained its commitment to make a positive difference in the Middle East by supporting community-based activities. The initiative, in line with the company’s corporate social responsibility efforts, included a charitable contribution to Safa School, which offers sustainable support to local schools in South Africa through its ‘hands to heart’ project.

“Looking forward to 2008, as part of our continued commitment to customers, UPS is seeking to enhance its expansion of services, operations and advanced technological infrastructure in the Middle East,” concludes Tansey.

Web:www.ups.com
Tel:+971 4 3391939

Follow us on

For all the latest business news from the UAE and Gulf countries, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube page, which is updated daily.