Harvey Nichols is the place to satisfy your high end fashion urges. But how glamorous are its stock warehouses?

Brian Shepherd, Senior Vice President, Al Tayer Logistics

Gucci handbag. Check. Pucci jacket. Check. Jimmy Choo shoes. Check.

No, this is not an article about the day in the life of a fashionista but about Brian Shepherd, Senior Vice President, Al Tayer Logistics LLC. Part of this group, after all, is Harvey Nichols, one of the world’s most stylish stores. Sheperd happens to be the behind-the-scenes-guy who makes the life of a fashion obsessed diva complete.

Sheperd is a logistics industry veteran of 40 years, so he knows exactly where he’s coming from and where he’s going. “The basics of logistics are the same in any industry,” he says. “It’s all about how you deal with different products, whether it’s coffee or clothes, you have to know how to manage inventory, move stock in the best possible way and handle costs.”

But the logistics of luxury fashion must still be different. Shepherd agrees. He says, “Fashion is treated very differently than other businesses, because we’re talking about high value luxury products which are very fast moving.” Other lifestyle brands like GAP, Banana Republic, have four seasons – Spring, Summer, Fall and Holiday. So essentially, warehouses are stocked up with merchandise for one particular season which are pushed out into the store in two phases, for example, Summer Phase One and Two. Summer One is the biggest push from a marketing perspective. Next follows Phase Two which lasts till almost the last bit of summer.

And unlike luxury brands, stocks of any particular season of lifestyle retail brands are purchased approximately six months in advance. Stock for Holiday 2009 (approximately from October 2008 to January 2009), for example, is purchased in January or February of 2008. This gives the team a large gap and ample opportunity to organise themselves and start bringing the first part of the product to the stores around September or October 2008. The launch and marketing happens by November and the range lasts right through December and January 2009.

Luxury designer fashion is changing all the time. This sets it apart in treatment and handling. Fashion savvy consumers want to find a new collection each time they go to a store, so they can be the first to be seen wearing a new piece of clothing. Buyers at Harvey Nichols buy selected styles in small quantities from suppliers selected by the buyers for the store. Harvey Nichols has a large number (close to 400) of suppliers. Bigger, more established brands like Bottega Veneta and Gucci may require larger orders since a number of these brands are exclusive franchise partners with Al Tayer Insignia and therefore buying is consolidated at a company level.

Buyers travel to brand headquarters a few times each year to select a range of products suitable for the region. These brands can be relied upon to provide a running range of styles to the buyers who have a certain value at their disposal and are very specific about their purchasing requirements. Buyers also continuously visit high fashion clothing fairs where they meet with new suppliers whose designs are of potential appeal to the Middle Eastern customer. Buyers are also regularly on the lookout for new suppliers from a variety of sources. This makes for a variety of stock in the store.

Accessories such as handbags are purchased in even smaller quantities. “We only purchase a limited number of different styles in handbags as that is the kind of business we do and also, here in the Middle East, we do not carry stock of fashion brands,” comments Shepherd.

Throughout the season, Harvey Nichols introduces new products so as to be up to date with the trends in the other fashion capitals of the world. This cross stocking gives UAE consumers the opportunity to own the latest designs from around the world. Almost everything is air freighted so as to ensure that fashion lines in the Middle East are usually launched at the same time as the rest of the world. The cost of air freighting is still very low compared to the value of the products coming in. Within a week from the time the stock arrives, it is processed through the warehouse and arrives at the shop floor.

And what happens to stock that does not get sold? “We have two major sales before and during DSF (Dubai Shopping Festival) and around DSS (Dubai Summer Surprises),” replies Shepherd. “To satisfy customer demand we have the option to move stock around from one store to another depending on demand. Whatever else is still left is sent to the outlet mall.”

Store in Style

The warehouse that stocks Harvey Nichols’ merchandise is in the Al Quoz Industrial area and is just one of the warehouses operated by Al Tayer Logistics. It is not exclusive to Harvey Nichols and services all the companies luxury brands. Purchased in 2005, it was converted into a distribution facility by the Al Tayer Logistics project team. All Al Tayer warehouses are temperature controlled.

As soon as stock arrives, it is unpacked, put on hangers, priced, security tagged and sent to the store. The store conducts further value added services such as steaming, but because the stock is moved so quickly it’s hardly subjected to any creasing. “Everything is treated with great care,” says Shepherd. “We ensure that all merchandise reaches our stores in perfect condition.”

Shipments arrive in Dubai by air from over 500 suppliers located in countries mainly in Asia, Europe and the Americas. The 52 staff members segregate shipments by store, scan them into the WMS system and place them in pallet storage by reach trucks, using hand held RF (Radio frequency) scanners. Within three to five days, the pricing is complete and the stock is withdrawn from storage and transferred to a processing area where the individual merchandise is priced and security tagged and made store ready. Merchandise is then scanned out of the warehouse and transported directly to stores within the average seven day window.

Fashionably challenged

We do face certain challenges in the region,” says Shepherd, explaining that the Middle East customs authorities require a country of origin statement for every item coming in. “As a number of the origin countries do not require this statement,” adds Shepherd, “some suppliers may face a challenge giving us a country of origin statement. This is an issue that can affect our overall efficiency. Although, this is not that much of a problem in Dubai.”

Another issue is organising the international supply chain. Shepherd says that some countries do not have regular flights coming into Dubai, hence they have to fly their merchandise through other centres, consolidating it in central, easily accessible ports, for example. Because the quantities purchased are generally small, however, bringing the supply chain together can be a challenge. “Dubai as a major international airline destination is not that much of a problem because now almost all major airlines come here, but some markets in the region can pose a difficulty at times and offer more of a challenge for our stock, as it may take longer to reach the stores,” he says.

Al Tayer is mulling expansion across various Middle East markets. Moving into Saudi Arabia could prove to be even more challenging as the kingdom’s customs procedures are traditionally stricter than other Middle Eastern countries. Efficiency is also a problem area there. “They’re not as efficient in Saudi Arabia as we are in Dubai for clearing shipments,” says Shepherd. “Our air shipments arriving in Dubai get cleared within a day of arriving. We’re also a known and accredited Platinum customer of Dubai Customs, which gives us the validation of having excellent, certified products.”

The portfolio

Al Tayer’s attire section is divided into two categories: Al Tayer Trends, which are the mass market brands like Gap, Banana Republic, Mamas and Papas, At Home, Texture and Galler Chocolates. The second category is Insignia. Labels that fall under Insignia are Gucci, Giorgio Armani, Emilio Pucci, Jean Paul Gaultier, Sergio Rossi among others. As if being the biggest high value fashion brand retailer in the UAE was not enough, expansion is being considered all over the region.

What was the best thing to happen in the logistics and supply chain industry in the region in 2007? What was the worst? Top professionals share their views…

Shahid Ahmad Business Development Manager, Mohebi Logistics, Dubai, UAE

THE BEST Perhaps the best thing to happen in 2007 was the establishment of Dubai Logistics City, and the resulting international interest generated in the UAE’s logistics sector.

Currently, the growth rate for the industry is almost 22 per cent per annum in this country and the region, with the population growing at a phenomenal rate of 10 per cent per annum in the UAE.

It is natural then that the logistics industry should grow at a rate of 20 per cent per annum. That’s the basic internationally accepted formula — twice the growth rate of population, thanks to the global increase in consumerism, packaging material and transportation logistics.

THE WORST I would say this market is still traditional. People are conservative. Some people believe, if they went to a third party logistics provider (3PL), their trade secrets would become public.

What needs to be remembered is that we are now living in a global economy where retail research companies have their computers plugged directly into the cash tills of supermarkets, so information is constantly being shared. In this scenario, it shouldn’t really matter then that a common supplier happens to deliver competing brands to any given retail outlet. Moreover, there should be no cause for apprehension since we sign a confidentiality agreement with each of our clients.

These concerns will have to go and they will, over time.

Among other issues, there’s a need to diversify the market. For instance, if someone starts a bottled water factory here five more people start bottled water plants too. If somebody starts a soft drink factory, five new players set up shop too. If somebody starts a ketchup factory, twenty more people jump in too. All of a sudden, there are price wars in the market. Suddenly capacity goes up without any commensurate increase in logistics infrastructure. By 2009-2010, there will be intense price wars in the market.

Sujit Subramanian Regional Manager, Middle East and India,Lufthansa Cargo Charter, Sharjah, UAE

THE BEST Besides the overall growth and action in the logistics industry in general, I would say the setting up of Lufthansa Cargo Charter’s office here in the Middle East would probably be one of the best things to have happened to this region’s air charter industry in 2007!

Lufthansa Cargo Charter is often faced with challenging cargo situations. A good example would be a project we completed, which involved transportation of 250 tonnes of machinery for a US steel mill transported from Venice to Chicago. This was carried out in close cooperation with our Lufthansa Cargo colleagues at Venice and Chicago and involved a lot of precision planning and execution. The transportation solution consisted of a combination of AN124 and B747-300F aircraft.

We were recently contacted by a large automobile manufacturer in India who entrusted us with the responsibility of organising two B747 flights from China into India. These flights were so time-critical that any delay meant our customer’s production unit would come to a halt and millions of dollars would be lost. Our entire charter team was on its toes to ensure the auto components arrived as planned in India and the customer could breathe easy having met his production team’s deadline.

THE WORST Rising costs and the rate of inflation in the region is a depressing factor at the moment. Increase in office rents, storage units, warehousing, transportation and ever-rising aviation fuel costs have all put pressure on the logistics sector’s margins in 2007. We hope things change soon so we can effectively map out long-term strategies for our companies by keeping fixed costs at the minimum.

Ingo Roessler Vice President, Cargo, Royal Jordanian Cargo, Amman, Jordan

THE BEST Forwarding companies in Jordan formed a Jordan Logistics Association, a body representing the interest of logistics providers for airlines, airports and the government. The body, whose chairman is Ibrahim Naouri, will certainly help improve the overall environment for logistics in Jordan.

THE WORST The steep increase of jet fuel will have huge long-term effects on air cargo. Ocean shipping will grab further market share of commodities traditionally shipped by air. Not that I would agree that the quality for the consumer will be exactly the same, however, the willingness to accept higher prices for particular fruits, for example, has a natural limit. Therefore, air cargo has to become very creative to get more efficiency out of their systems in order to remain competitive.

John “Jack” Publicover, Managing Director, Gulf Maritime and Transportation Institute FZCO, Dubai, UAE

THE BEST I would say from a security perspective, that a best practice for 2007 would be the acceptance, by terminal operators and the transportation industry as a whole, of the International Organisation for Standardisation (ISO) 28000 specification for Security Management Systems for the supply chain.

It is this standard which provides a framework for companies that operate within any aspect of the supply chain to assess their own supply chain security risks, quantify vulnerabilities, and develop mitigation strategies to manage potential security concerns from the supply chain.

I have been fortunate to have been tasked to assess supply chain, physical, information, and procedural security requirements throughout the last six years in over 25 countries to include about 140 ports. During that time, I have personally assessed DP World terminals in Yantai, Qingdao, Hong Kong, Pusan, Chennai, Nhava Sheva, Antwerp, and Causedo in the Dominican Republic, to name only a few. In each case DP World has been the leader in the adoption and development of both safety and security requirements at all of its facilities. Thus, it is not surprising DP World was the first global terminal operator last year to receive the ISO 28000 certification for complying with this specification.

THE WORST I must identify a concern for 2007, instead of identifying a worst, because there is not yet enough information to make that determination. With the advent of the US passing a bill before the House in January 2007 and the Senate in July 2007, resulted in President Bush signing into law on August 3, 2007 ‘H.R. 1 Implementing Recommendations of the 9/11 Commission Act of 2007’. The law requires 100 per cent scanning of maritime containers before they are loaded onto vessels heading for the US. The US has defined a five-year period for this implementation.

Caner Denizci, Foreign Business Country Operations Manager, Borusan Lojistik, Istanbul, Turkey

THE BEST Company-wise, I would say we’ve finalised our investment plans at the end of this year. These things take a very long time sometimes. But now that this is taken care of, we see a very good future vis a vis strategy and growth plans…Borusan is the best in Turkey and it’s going to be the best player in the region.

THE WORST The US trade embargo on Iran. People are starting to feel it more and more and it affects everybody’s business. For instance, the banking sector that was seriously affected all through the year. When something like the banking sector is affected, everyone is hit…if traders don’t have any business, logistics companies don’t have any business.

Stefan Pletsch, Vice President, Business Development, Middle East, Schenker, DB Logistics, Germany

THE BEST I think the industry is increasingly moving into the supply chain direction. 3PL services are becoming more and more important…you don’t have to own all your assets. So Schenker is going in that direction as a non-asset company.We are also doing a lot of supply chain services.

THE WORST This year had so many positive developments, it’s hard to say there were any negatives at all. It’s only that growth in certain parts wasn’t as fast as expected. I would say it’s the lack of development and performance in Saudi Arabia at the moment. It is not a well-regulated sector as it should be.

Adrian Lee, Senior Solutions Strategist, I2 Technologies, Berkshire, UK

THE BEST As a provider of software solutions to the logistics industry, the highlight of this year has been the successful delivery of a number of innovative projects on time, within budget, and which are already delivering key benefits to our clients. We see this as a key to future success in the marketplace.

THE WORST Although good progress is being made, as a logistics community, we are not doing enough to resolve the environmental issues that face us and to concern ourselves with how we are going to tackle those issues in the long term.

Dr Edward Roderick, Senior Vice President, Global Logistics, Agility Inc., Dubai, UAE

THE BEST The continuing growth is good for the logistics industry, in that more goods are coming into the region, particularly consumer goods and products associated with a growing population, for example, food and chilled and frozen goods. All of that creates opportunity for logistics operators, as there is clearly an ongoing demand for storage capacity for freight forwarding services and for land-based transportation.

THE WORST The worst things happening all surround inflation. Inflation in this sector is very high for a variety of reasons. One, the change in oil prices is translating into higher diesel fuel cost and driving costs up in some countries of the region. Two, the continued growth in demand coupled with a more stringent regulatory environment is creating labour and skill shortages. This is all adding to the inflationary pressures in the industry.

Adel Abou Heneidy, Managing Director, PICO Logistics, Cairo, Egypt

THE BEST We see strong economic growth in Egypt, leading to a fast-growing need for optimum logistics solutions and high demand for domestic transportation. While investments into safe infrastructure and regulations are still slow, customers demand new solutions as they become more and more aware of the importance of proper supply chain management.

THE WORST Entrepreneurs with vision and talented staff invest in establishing new organisations, state-of-the-art technology and management systems and professional education and training, yet they are dealing with a cost-sensitive
market, that is, they are demanding solutions but are not yet willing to pay for what is a value-added service compared to existing suppliers with traditional performance. Return on investment is low when investing into technology, health and safety, customer service and commitment and, at the same time, competing with overage equipment, low safety standards and an often prevailing laissez-faire policy.

Prakash Nair, Manager, Network Cargo Sales Development, Emirates Airlines, Dubai, UAE

THE BEST Overall, 2007 was an extremely good year for Emirates SkyCargo. It is always a big deal for an airline when it buys even one aircraft. So imagine the atmosphere at Emirates after it was announced at the Dubai Airshow that we had placed an order for 143 new aircraft – the biggest order in the history of aviation.

These new aircraft will not only provide significantly ore cargo capacity on our existing routes but enable Emirates to launch services to many more destinations. This year alone, we launched freighter services to Djibouti and offline operations to Mexico, on top of the seven new destinations introduced – Venice, Newcastle, Sao Paulo, Toronto, Ahmedabad and, on December 3, Houston. We also increased services to a number of existing destinations – including Shanghai, which we increased from six weekly services to eight, and from 10 to 13 on the Hong Kong route. We took delivery of two Boeing 747 400ERFs in 2007, which we have deployed on our Hong Kong, Amsterdam and Zaragosa routes.

But there were – and are – many other reasons why 2007 was a good year at Emirates SkyCargo. We began shifting operations to the new Cargo Mega Terminal at Dubai International Airport, which has provided us with significantly more capacity and eased constrictions we have been facing over the past few years. In the first six months of the 2007 fiscal year (April-September), we handled 10 per cent more cargo than the same period in 2006 – 637,000 tonnes compared with 577,000 tonnes.

China, of course, is still a main driver of this growth. Outbound traffic from its three cities that Emirates SkyCargo serves – Shanghai, Beijing and Hong Kong – is still growing at a jaw-dropping pace and shows no sign of slowing in the near future. India is the other heavyweight in terms of volumes and is the leader in inbound growth. Africa is also a region where we are seeing good growth, especially in the perishables sector, predominantly, fresh fruit, vegetables and cut flowers.

 Ron Cesana

THE WORST Cargo 2000 project director Ron Cesana passed away suddenly in June while holidaying in Italy (see left). It is always sad when someone goes before their time and it is sad to lose someone in the industry, especially a pioneer such as Ron. He more than just led Cargo 2000, an initiative aimed at implementing a quality management system for the international air cargo industry, he was completely devoted to improving the entire sector. His passion for and belief in the potential of Cargo 2000 – and indeed the whole industry – are certainly missed.

Gerhard Mattrisch, Senior Researcher, Daimler AG, Berlin, Germany

THE BEST I think the best news is, with very few exceptions, the logistics industry was able to grow along with the growth in normal international trade. There was trade growth, transport volumes were up enormously, and the logistics industry was able to perform well.

THE WORST I think there isn’t enough progress vis a vis environmental concerns. I think this one is more or less a worldwide issue. We see there’s a growing awareness of the carbon dioxide footprint, especially in Eastern and Western Europe, but only very selective examples in the Middle East. So there are a lot of things to do, and we should witness this in the next three to five years.

Julian Kimber, Branch Manager, Logistics Recruitment, Dubai, UAE

THE BEST The best thing that happened was the entrance of some exciting new players into the marketplace, particularly local companies who’ve been trying to expand their operations, go regional and compete with the likes of the DHL Exel supply chains, Agility, and players like that. One would be Mohebi Logistics, for instance, who has gone aggressively into the marketplace, put its money where their mouth is and said, ‘This is what we’re about!’. They have a very solid plan and have exercised it quite well. There are other companies as well. The Lootah Group, for instance, with Centre Point Logistics, is another new player in the marketplace.

THE WORST Some of it has been the fallout from recent mergers and acquisitions. I think there has been a lot of confusion in the marketplace. If you look at the Deutsche Post global network and the fact that Danzas, DHL and Exel have all been mashed together and put under one umbrella; there’s still a lot of uncertainty and fallout from that.

It sends out the wrong message into the marketplace, because some people take their eye off the ball as far as customer service goes, because they’re concerned as to whether or not they’re still going to have a job, whether they’re going to be made redundant, what their new role in the organisation is going to be, whether or not they will maintain their customer base, that sort of thing. And we’ve had a number of such mergers happen this year, one more being CEVA taking over Eagle Global (EGL).

There’s been a great deal of uncertainty with people leaving those organisations, because they’re not sure as to whether they would have a role in the new merged organisation. You have Schenker BAX Global sort of merging their operations as well. There’s been a high degree of uncertainty in the marketplace, which is both good and bad, but mostly bad because it means customers are losing out.

Johan Ruthstrom, Business Partnerships Manager, North America & Middle East, Traxon Europe, Germany

THE BEST I think the aftermath of September 11. It was a very sad event, but in a way it helped cargo community system (CCS) providers such as Traxon Europe. Customs authorities around the world want to improve their securities with different kinds of measurements, in regard to filing and manifests, pre advanced screening… so that’s very good for CCS providers, because basically, we have the real value of providing this information, since the forwarders don’t have the means of communicating with the carriers and carriers have been pretty much mandated by governments to file this information. They get fined, or the forwarder gets fined, if they do not send this information electronically. And I think this will also help us with regard to our activities such as e-freight, because what we need to do first is improve the quality of electronic messages before we even think about e-freight.

THE WORST On the flipside of the coin, things are complicated for providers, carriers and forwarders, because everyone carries out collecting security information with a slight twist of their own. US customs expect the filing in a specific matter, Canadian customs authorities require it slightly differently. We, for our part, have to be very much on the alert to be able to comply with all regulations. That’s the downside. The tricky part is sometimes they don’t really know what they want.

Capt. Mansoor Y.A. Ghafoor, Chief Executive Officer, Stalco Group, Dubai, UAE

IN 2008… We expect another boom. We expect the volumes and levels of imports to increase in the UAE. Similarly, the level of re-exports will increase, because facilities and infrastructure will establish Dubai more and more as a centre of worldwide trade. We expect bigger and more ships. On the port side, we have the new Terminal 2 in Jebel Ali coming up, to be completed and fully operational by next year. The new Khalifa Port will also be halfway complete. Finally, Dubai Logistics City is coming up. Today, we have one runway ready; the other infrastructure as well as superstructures should be advanced by 2008.

Geoff Wheatley, Regional Director, Middle East and Africa, SSI Schaefer LLC, Dubai, UAE

IN 2008… The logistics industry in the Gulf will again enjoy a period of real challenges, coupled with real growth, to meet the extraordinary development of the region.

New challenges will be faced by the more forward- thinking logistics providers, both 3PL and 4PL, to provide more efficient systems and processes in the supply chain to meet time-sensitive projects.

Cool chains, construction chains, retail chains and hotel chains will again be challenged as they will be at the forefront whilst faced with an ever-shrinking transport infrastructure to meet increased logistics requirements.

The number of trucks  and other commercial vehicles per km on the main arterial roads in the UAE is staggering, forcing many 3PL providers and supply chain practitioners to revert to night deliveries and other creative reengineering of their logistics operations just to keep the retail chains afloat.

Overall, I can foresee at least an additional 30 per cent increase in volume and movement of goods and services to meet all of these demands in 2008, which will, of course, reflect in many new opportunities and additional revenue for the logistics industry.

The major challenge will be to hold the costs of distribution and logistics as a reasonable percentage of the sales value of any commodity sold in the UAE in 2008!

Bill Hill, Group Vice President, GAC Logistics, Dubai, UAE

IN 2008… The logistics industry will come down to the best of the best. In general terms, the market will consolidate. We’ll see larger companies with more robust supply chains and with more resources. Because, at the end of the day, you can only sell cheap or low-end for so long, and then it doesn’t work. Today, many people have set up their supply chain so thin that if it doesn’t work, they’re dead. Many companies haven’t resourced properly or have over promised customers.

Adel Abou Heneidy, Managing Director, PICO Logistics, Cairo, Egypt

IN 2008… The Egyptian government has realised the need for improvement of domestic infrastructure and road safety, therefore high investments for the development of remote areas, as well as maintenance and development of existing infrastructure, have been budgeted for the near future. Also, Cairo airport is currently being developed to become a cargo hub for the region and Port Said East is seeing new investments and developments, which will help it become a key port for shipments in transit within years.

Dr. Edward Roderick, Senior Vice President, Global Logistics, Agility Inc., Dubai, UAE

IN 2008… The continued price of oil will generate major revenue streams in this region and that will translate itself into large levels of capital investment as also into consumer spending. Therefore, I think the general rates of economic growth that are being seen in the region are likely to continue onwards for the foreseeable future.

DHL Express has partnered with the United Nations to form a relief team for the Middle East and Africa. But can the region handle its next natural disaster?

DHL DRT Middle East/ Africa

Paul Dowling seems like the kind of man who is waiting to be a hero. In fact, following the 2005 South Asia earthquake which killed about 75,000 people and left hundreds of thousands homeless, the Customer Operations Manager for DHL Express Middle East/Africa volunteered to help his company distribute relief supplies.

Paul Dowling, Customer Operations Manager, DHL Express and Head of DHL Disaster Response Team Middle East/Africa

He and 64 other DHL employees handled 9,000 tonnes of cargo, such as tents, blankets, tarpaulins, food and medicine, from 230 aircrafts in three weeks.

“What I saw when I went to Islamabad,” he says and pauses. “Absolutely incredible what a small group of people can do and the impact they can have. You see people across the world donating supplies and you like to think you’ve got a hand in moving those donations.”

It was during this effort that the DHL team invented a relief package called the “speedball”. To prevent relief goods dropped into the disaster zone by helicopter from breaking upon impact, the volunteers began padding the inside of standard red DHL shipping bags with mattresses and clothing to protect breakable supplies such as bottles of water, cooking utensils and cans of food in the centre of the bag.

The DHL bags, according to Dowling, are water-resistant and can carry up to 25 kilograms. He says they are tough enough to drop from 40 feet. “[The bag] actually bounces,” he laughs, “hence the name ‘speedball’.”

Thirty volunteers set up a speedball packing line in a warehouse following the south Asia earthquake, according to Dowling, and DHL was able to deliver 3,000 packages to residents of Islamabad.

Paul has participated in four other relief missions with DHL and will likely show up for many more, as he has recently been named Team Leader for DHL’s Disaster Response Team (DRT) for Middle East and Africa.

Based out of the DHL Express UAE headquarters in Dubai, the team of around 40 volunteers has been formed to set up airport logistics operations in the immediate aftermath of a natural disaster in the Middle East and Africa. The team, which completed training last month, is responsible for ensuring that relief supplies are efficiently sorted, stored and distributed.

 
From left, Dave Spargo, Area Director DHL Middle East, Isabelle de Muyser-Boucher, UN OCHA, Susanne Meier, Director CSR Strategy & Policy, DPWN, Brigadier Khalid Salem Al Absi, Director General, General Dictorate of Civil Defence, Ministry of Interior Bahrain, Dr. Hubert Lang, German Ambassador to Bahrain, Sheikh Ahmed bin Ali Al Khalifa, Faisal Salehi, DHL Airside Support Manager, and Paul Dowling, Head of DHL DRT Middle East/Africa at the signing ceremony for the DHL DRT Middle East/Africa

Meredith Taghi, a DHL Training and Development Manager who has recently located to Dubai from Australia, says she joined the DRT to make a difference. “I wanted something that was more than fundraising or ad-hoc charity activities,” she explains. “I really like to be involved in things that are challenging and practical, with a real impact on the people and countries we would be supporting.”

Dowling says natural disasters rarely see a shortage of supplies – “there’s enough of that coming in from the countries and private individuals and companies” – but donated supplies often fail to get to the people who need them most.

“Those [supplies] basically sit in the airport, lock up the airport, and they’re no use to anybody,” says Dowling. “So we move those goods, we warehouse them, we break them down, we inventory them and then we help move them.”

Dowling notes that DHL is not responsible for “handling the transportation” but rather hands the materials over to “to the transport provider, whoever that is, the military, or private individuals.”

DHL, through a partnership with the United Nations Office for the Coordination of Humanitarian Affairs (UN OCHA), has already created two teams of employees for missions in the Asia/Pacific and America/Latin America/Caribbean regions. The company now has 200 DRT volunteers around the world.

DHL has supported relief missions that followed the earthquakes in Peru (2007) and Indonesia (2006), cyclone Gonu in Oman (2007), Hurricane Katrina in the United States (2005) and the tsunami in south-east Asia (2004).

The UN insists DHL’s work is strictly pro-bono. “It’s a gift they give to not only the UN,” says Isabelle de Muyser-Boucher, Chief of the Logistics Support Unit of the Emergency Services Branch of the OCHA, “but the affected countries and to the people in need.”

And the UN says it needs DHL. “Especially at the onset of large-scale disasters, when emergency aid arrives in quick succession from all parts of the world, it is of vital importance that all these supplies are handled in an efficient and professional way to avoid congestion and delay,” says de Muyser-Boucher. “The UN is not an expert in airport management, but DHL is.”

De Muyser-Boucher says having a private partner such as DHL can also help gain access to countries that refuse UN assistance. “We have tight hands,” she says, “as long as the country with the disaster doesn’t request our help.”

Because the government of Oman avoided requesting international assistance following cyclone Gonu, for example, the UN was unable to enter the country, but DHL could. “I coordinated supporting our local office down there which made requests for water, food and so on,” says Dowling. “There was no direct contact with the government.”

Preparing for the worst In 2006, according to de Muyser-Boucher, 143 million people around the world were affected by natural disasters, which led to US$34 billion worth of economic loss.

And she says we are only going to see more natural hazards. “The biggest single cause will be climate change, as well as the increased incidence and severity of extreme weather events associated with it,” she told the crowd at the DRT launch at the DHL hub at Bahrain International Airport. “Even if no single event can reliably be attributed to global warming, the trends are clear, and clearly accelerating, with the effects felt on every continent.”

De Muyser-Boucher says Africa, “on the forefront of disasters,” will be the continent hardest hit.

“By 2020, an estimated 250 million Africans will face increasing water shortages,” she told LOG.Middle East. “Last year, the five countries worst affected on a per capita basis by disasters were all in Africa.”

Muyser-Boucher says she is less worried about the Middle East than Africa.

A member of the DHL Middle East/Africa DRT team demonstrating a “speedball” drop

“Middle East countries have shown that, first of all, they are not as disaster- prone as other areas and, secondly, they manage because of their wealth, because of their preparedness and they cope rather well themselves.

‘The Middle East in itself may be fragile for natural disasters rising from climate change, or it may be very useful in assisting others because of its strategic position.”

The region, according to her, is “politically stable, it has all the resources, it is logistically very convenient to help these African countries.”

Dowling, on the other hand, says he sees earthquakes as the Middle East’s biggest threat. “The experience we’ve got is earthquakes,” he says, citing recent quakes in Turkey, Iran and Pakistan, as well as the quake that triggered the tsunami in southeast Asia. “So we believe that’s going to be the main source of disasters in the area.”

Knowing certain spots are more prone to earthquakes than other areas, he explains, the DRT would “establish a relationship with the authorities, for example, or try and get an MOU (memorandum of understanding) signed.”

“Maybe the UAE isn’t a primary site of danger, but around certainly is, Pakistan and Asia. We’ll try and target those areas, try to get agreements with their governments to operate in a disaster.”

In his fifteen years in the Gulf, Dowling says he has seen very few disasters in the immediate region, except for cyclone Ganoo in Oman, “But we’re pretty flexible in terms of what we can do, but obviously certain countries present more of a challenge than others, visa restrictions and so on. Obviously we wouldn’t have expected anything to happen in Oman, but something happened and we were able to assist as requested.”

And Dowling says he’s ready to assist. When asked if he’ll join his team at the next disaster, “I’d love to show up,” he says confidently. “If I get the opportunity to go down and help, I’ll certainly take it.”

Christa Soltau has a formidable track record opening airports. And now she’s relishing the hot seat at Dubai World Central

Christa Soltau, Managing Director, Dubai World Central International Airport

Christa Soltau can’t stop smiling and who can blame her? We’re sitting in the sumptuous fifth floor office of Dubai World Central International Airport, overlooking the stunning Emirates Golf Club and ever-changing “New Dubai”.

And the view inside isn’t bad either. The large open plan office, which resembles a small exhibition hall, contains a soothing water feature near the entrance, a mock design of the airport’s 92-metre air traffic control tower, as well as three huge model impressions of the 140-square kilometre (sq km) facility that is rapidly taking shape in Jebel Ali.

Soltau came on board as senior manager of airport ground operations in April, after admittingly “falling in love” with the project two-and-a-half years ago. Now she arguably has the biggest job in UAE aviation, managing director of the new DNATA/Dubai

World Central joint venture that will oversee the airport’s operations.

“I opened Munich and Athens airports and this is my third,” she says. “This project is outstanding, I really feel honoured. I’m used to working in a difficult field but so far it’s been very smooth and well organised.”

Arriving fresh from Dusseldorf Airport, where she was general manager of the Air Cargo Centre, Soltau has more than 20 years of industry experience, mainly in operations, but she confesses that her heart is in cargo, because it is “more lively”.

That message is immediately apparent when you look at how much space has been assigned to cargo at Dubai World Central. In fact, the first plane to touch down will be a freighter, most probably in the fourth quarter of next year.

“Most airports concentrate on the passenger and forget about the real business, which is cargo. The main focus of Dubai World Central is cargo and it’s the first of its kind,” she says.

The airport has a new concept which is designed to integrate handling, air cargo operations, and Dubai Logistics City, all of which is linked up by a bonded road to Jebel Ali port. “We will have a dedicated runway for cargo, close to the cargo terminal, probably by about 2015.”

Shipments will be broken down at a 38,000 square metre cargo terminal, which is close to the runway and adjacent to Dubai Logistics City (DLC) and will be capable of handling up to 600,000 tonnes annually.

“Once this first cargo warehouse has reached its limits we have space for six more warehouses totaling a capacity of four million mtonnes. In addition to this Emirates and Integrators have a capacity of eight million (m) tonnes for their own facilities which give us a total capacity of 12m tonnes.”

Dubai Logistic City is located right next to the cargo warehouses and is the location for forwarders and logistic companies.

While declining to elaborate on how many freight companies are signed up at DLC, she says she believes the facility is growing faster than expected. “There’s a lot of interest and people are prepared to sign the contracts. We’re starting our focus with DLC and the Office Park so companies can settle down there. If, at a later stage, they want to move to Commercial City, they are free to do so.”

Dubai Logistics City offers tenants not only offices but also shared warehouses, or they can build their own facilities, while the whole airport serves as a free zone umbrella, giving companies 100% ownership.

“Customers can choose their own requirements and how they want to set themselves up,” she says. “Reservations have been good, but at this size of the project of course it’s not fully occupied yet.”

Soltau believes one of the key cargo selling points is not only the integrated transfers but also the assembling options open to shippers. A dedicated road link with Dubai International Airport is under discussion.

“If a customer has a component from China and another from Indonesia, they can bring it in by air, assemble it here and send it on, or it can come in by sea and out by air. Dubai has low labour costs so if you want to assemble goods, you don’t have to bring it to Europe because it gets too expensive. There are so many cargo airlines that fly here so you have choice with schedules.”

The final main passenger terminal, planned at the very centre, will handle up to 120 million passengers, while outlying areas are assigned to Commercial and Residential Cities, which will house up to one million people, Dubai Exhibition World, Aviation City and even a golf resort.

And building has already started. “The instrument landing system has been installed,” says Soltau. “If you go out to the construction site now, you can feel it’s becoming an airport. We are ready for the next decade.”

All of this should mean that the skies above Dubai World Central will soon be busy with traffic. Soltau has no immediate concerns about the environmental pressures, saying new-generation aircraft are quieter than your average turbo prop.

“The discussion of airport pollution is nothing compared with what happens elsewhere. Cars are bigger polluters than aircraft.”