Major road and bridge projects valued at $142 billion are underway or at the planning stages in the Gulf region, with the UAE leading the way after adding to its transport infrastructure with the recent opening of Dubai Metro’s Green Line. Highlighted by Abu Dhabi’s $25 billion Surface Transport Master Plan (STMP), the UAE’s US$58 billion worth of road and bridge projects represents almost 40 per cent of the regional total.

Saudi Arabia has US$48 billion dollars worth of projects either planned or underway, while Qatar continues with its infrastructure developments for the 2022 FIFA World Cup, with road projects valued at US$17 billion in progress.

Kuwait will be one of the most active markets for road projects in the next couple of years, with projects worth nearly US$9.4 billion in the pipeline, including the Jaber Al Ahmed Al Sabah Causeway. Oman has road projects worth US$8 billion – 5.5 per cent of the regional total – with another US$2 billion worth of schemes at various stages in Bahrain.

Underlining huge opportunities for transport sector manufacturers and suppliers within the region and worldwide, the scale of development in the Gulf is highlighted by figures collated by market research specialist Ventures Middle East ahead of the Gulf Traffic Exhibition and Conference, which takes place from 12-14 December 2011 in Dubai, UAE.

The National Association of Freight and Logistics (NAFL) and Dubai Trade, the premier trade facilitator under Dubai World, recently signed a memorandum of understanding signifying cooperation in terms of activities and initiatives at Dubai Trade head office in Jebel Ali, Dubai.

Present at the ceremony were NAFL and Dubai Trade officers, led by signatories Ashok Thomas, Secretary-General of the NAFL, and Mahmood Al Bastaki, Director, Dubai Trade. The MOU seeks to synergise the activities and initiatives of both parties to promote the development of the UAE freight and logistics industry.

Mahmood Al Bastaki, Director, Dubai Trade, said, “Promoting cooperation between entities in an industry is important. This alliance between NAFL and Dubai Trade reinforces the three Ts that drive Dubai’s economy: Tourism, Transport, and Trade. We believe that concerted efforts between the NAFL and Dubai trade will benefit the industry, which hopefully, will lead to the advancement in freight forwarding and logistics in the country.”

Agreement signatories Mahmood Al Bastaki, Director, Dubai Trade (left) and Ashok Thomas, Secretary-General of the NAFL

Under the agreement, the NAFL and Dubai Trade will endeavour to participate in similar activities, organise joint networking events, promote both parties’ brand and activities, maintain open communication lines with each other, and more importantly, provide tailor-made certified training courses on Cargo Insurance and E-Business.

Ashok Thomas, Secretary-General of the NAFL, said, “We are honoured to have signed an alliance with Dubai Trade and eager to start working on the specifics of the cargo insurance, which they are going to provide. The NAFL has almost 300 members and they will definitely benefit from this auspicious partnership. Hopefully, this will pave the way for more collaborative efforts among the industry players that would support local and international initiatives and policies, especially with regard to the regulation and development of the freight forwarding and logistics industry.”

Emirates SkyCargo has become the first airline to transport the new generation of containers which can heat and cool temperature-sensitive cargo. Two Envirotainer “RAP e2” carrying pharmaceutical products were transported on a commercial flight from Hamburg, Germany via Emirates’ hub in Dubai to Jeddah in Saudi Arabia. Pharmaceuticals need to maintain a constant temperature during the entire transport process.

The Envirotainer RAP e2 is a heating and cooling container with active temperature control, which enables the transport of mainly temperature-sensitive pharmaceuticals from door to door. Temperatures can be regulated between zero°C and 25°C. This brand new container concept only uses light composite materials, serving to reduce the weight and emissions during transport.

Ram Menen, Emirates Divisional Senior Vice President Cargo, said, “Being the first carrier to embrace the RAP e2 underlines Emirates’ role as an innovative airline offering transport solutions that are tailored specifically to our customers’ requirements. Using the Envirotainers we are able to guarantee an even higher reliability while transporting temperature-sensitive freight.”

The Envirotainer “RAPe2” containers during the loading at Hamburg airport

Around 25 per cent of the 1.8m tonnes of cargo Emirates SkyCargo carried in the 2010-11 financial year (ending March 31st 2011) was temperature sensitive.

Apart from lower deck freight capacities on its 145 wide-bodied passenger aircraft, Emirates SkyCargo operates a mix of Boeing 747-400ERFs, -400Fs and 777Fs to 113 destinations on six continents.

DP World’s global portfolio of container terminals has continued to build on the excellent start to 2011 with the momentum continuing into the second quarter. Gross volumes for the first six months of the year were 26.2 million TEU or 11 per cent ahead of the prior year.

This performance was driven by strong growth in the Asia Pacific, UAE, Africa and Americas regions, as well as new volumes from recently opened capacity in Callao, Peru and Qingdao, China. Like for like gross volume growth was 10 per cent.

The company’s portfolio of consolidated terminals handled 13.5 million TEU in the first six months of the year. Had their five terminals in Australia not been deconsolidated from 12 March 2011, the consolidated terminals would have delivered 10 per cent growth ahead of the same six month period in 2010. Like for like consolidated volume growth in the first half was eight per cent.

The UAE handled 6.1 million TEU in the first six months of the year, with a record 3.1 million TEU handled during April, May and June. Whilst the first six months delivered growth 11 per cent ahead of the same period last year, this continues to reflect a relatively weak comparable period in the first half of 2010.

DP World has continued to invest in new capacity and their development in Vallarpadam, India and Karachi, Pakistan both of which opened in the first quarter of the year are making good progress.

Mohamed Sharaf, Chief Executive Officer, DP World comments, “DP World has delivered a very strong performance in the second quarter of the year, resulting in over 26 million containers handled for the first six months of the year, delivering a performance ahead of the industry, reflecting our positioning in the faster growing emerging markets.

“We are particularly pleased to see the UAE achieving another milestone in container handing volumes with a record 6.1 million TEU handled in six months.

“The strong container volumes seen in the first half of the year will result in a significant improvement in first half profit after tax against the same period last year.

“As we go into the second half of the year, there is some uncertainty around the global economy making it difficult to forecast how global trade will develop. Whist this uncertainty is not, as yet, reflected across our portfolio, and with our focus on the more resilient emerging markets we still expect to deliver full year results in line with expectations.”

Southern Air Holdings, Inc. announced the addition of Saudi Airlines Cargo Co. Ltd. to its list of blue chip global clients.

Southern Air and Saudi Arabian Airlines have signed a definitive agreement under which Southern Air will operate one Boeing 747 freighter on behalf of Saudi Airlines Cargo Co. Ltd. on an ACMI basis (aircraft, crew, maintenance and insurance). The aircraft will begin to be operated for Saudi Airlines Cargo Co. Ltd in July 2011 and will be painted in its livery.

Southern Air’s Chief Executive Officer, Daniel J. McHugh, commented, "We are proud to add Saudi Airlines Cargo Co. Ltd. to our client roster. Leading carriers continue to recognise the value that our outstanding operating platform and decades of global experience can bring to their own businesses. We look forward to establishing a long-term relationship with Saudi Airlines Cargo Co. Ltd. and are committed to exceeding their expectations by delivering excellent results and service."

Fahad Hammad, Chief Executive Officer of Saudi Airlines Cargo Co. Ltd., said, "We welcome  Southern Air to our freighter schedule. With their wide selection of wide bodied freighters such as B747F and B777LRF, Saudi Airlines Cargo Co. Ltd. will enhance its network coverage. Further, it is an important opportunity for our company to fulfill our customers’ demands.  We look forward to working with the Southern team."

As part of its continued commitment to environment and energy conservation, global marine terminal operator DP World has inaugurated a pilot solar power system at its busiest Indian facility, Nhava Sheva, which will allow the Mumbai terminal to harness solar energy for its energy requirements.

With the aim of reducing greenhouse gas emissions, including carbon dioxide, the pilot solar power system will reduce the terminal’s annual power consumption by around 14,000 kWh (kilowatts per hour). Once tested, the project will be implemented on a larger scale, contributing greatly towards a more sustainable energy portfolio and reducing the site’s carbon footprint.

The solar power system has a capacity of 3,000 watts and has been set up at the
engineering workshop within the DP World Nhava Sheva International Container
Terminal (NSICT) at the Jawaharlal Nehru Port. The state-of-the-art system is equipped with photovoltaic panels on the workshop roof, ensuring optimum access to readily available solar energy.

With the new solar power system switched on, various areas within the terminal such as the engineering offices, stores, locker rooms and sections of the workshop will no longer be dependent on purchased grid electricity. The system is designed to provide uninterrupted electricity supply.

Anil Singh, Senior Vice President and Managing Director, DP World Subcontinent
Region, said: “This is a commendable initiative from the NSICT management showing leadership in integrating renewable energy into our sites, and an example of good stewardship. This energy sustainability project is in line with DP World’s overall commitment to preserving the environment in all communities in which we operate.”

Alpesh Sharma, CEO, DP World Nhava Sheva, said: “DP World Nhava Sheva is committed to following sustainable business practices that support energy conservation. This solar power system will actively reduce greenhouse gas emissions at our marine terminal and help in cutting operational costs and contribute towards maintaining a cleaner environment.”

“Consistent, quality service makes flydubai a well-loved brand,” says Sheikh Ahmed Bin Saeed Al Maktoum Dubai’s first low cost airline records incredible growth since    its first flight on June 1, 2009.

“flydubai would not have been able to grow and develop so quickly if we did not operate in such a fantastic environment for business as the UAE,” says CEO, Ghaith Al Ghaith.

flydubai, Dubai’s first low cost airline, has reached its second anniversary with an impressive collection of statistics that prove the airline’s growing success and importance in the UAE’s aviation market.

Chairman of flydubai, His Highness Sheikh Ahmed Bin Saeed Al Maktoum,
said: “After just two years in operation flydubai is now a household name in the region. flydubai has consistently delivered a quality, affordable service during its two years of operation and millions of passengers have benefitted from the airline’s commitment to making travel more accessible and more affordable. It is this consistent, quality service that has made flydubai a well-loved brand. With a network spanning the GCC, Middle East, North Africa, Indian Sub-Continent, Asia and the fringes of Europe, flydubai is stimulating demand for travel and finding new markets with an appetite for developing business and tourism links with the UAE. This brings benefits to all sectors of the economy and I look forward to flydubai continuing with its good work for many years to come.”

The airline began operations on June 1, 2009, with a full flight of 189 passengers bound for Beirut and a commitment to make travel easier, more accessible and more affordable. Announced by the Government of Dubai in March 2008, the vision for the airline was to provide a low cost alternative on already popular routes from Dubai, such as Beirut, as well as to open up destinations that were underserved by direct air links to the UAE, such as Baku, Azerbaijan.

Ghaith Al Ghaith, CEO of flydubai said: “Two years ago this month our first flight took off. It was a wonderful, exciting time but I could never have imagined that two years on we would be in the strong position that we are today. Our strategy was to expand as quickly as possible, adding aircraft and destinations at a rapid pace to ensure we reached a critical mass in the shortest possible time. Today we have 16 aircraft and 36 operational destinations – making us the fastest growing start up airline ever.

“flydubai would not have been able to grow and develop so quickly if we did not operate in such a fantastic environment for business as the UAE.

“One of the biggest challenges for a new company is dealing with rapid expansion while ensuring the systems, procedures and staff are in place to maintain consistent levels of service,” added Al Ghaith. “At flydubai we have achieved that and more. Despite starting operations at a difficult time for the aviation industry, flydubai has not only stuck to our ambitious growth plan, but we’ve added to it by taking on challenges such as bringing all our maintenance and engineering in-house. We’ve done all of this successfully while at the same time maintaining an On Time Performance record that is one of the best in the industry at 85%. And perhaps most importantly of all our passengers still receive a friendly welcome when they come on board flydubai.

“We’ve taken a theory on a piece of paper and turned it into a reality – and a reality that works well. We’ve developed systems, training programmes, procedures which have made the vision of the Government of Dubai work in practice. We started with an ambitious plan and we are making that plan a reality.

“We have achieved an incredible amount in a very short space of time and that is something I am very proud of. I do not believe this could have been done anywhere else in the world. The support we have had from the authorities and the people of the UAE has been incredible. Dubai is a great place to do business and a very attractive place for people to come and live, which has meant it hasn’t been difficult to attract the right staff.

“I would like to take this opportunity to express my thanks to some of those responsible for creating this fantastic working environment for flydubai. Especial thanks must go to our Chairman, Sheikh Ahmed Bin Saeed Al Maktoum, whose guidance has ensured we stay on track to fulfill the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, who wanted flydubai to support Dubai’s commercial and tourism needs.

“Our rapid growth could only have been accomplished with the support of the GCAA, DCA and Dubai Airports who have worked closely with us to provide the facilities and operating slots we need for our expansion. This growth puts pressure on resources and facilities to grow as quickly as we do and I thank them for their support and patience.”

Two years into operations, the airline has delivered on its commitments and despite rapid increases in fleet, network and passengers, flydubai has managed to keep the quality of its service high. One measure of how well an airline is performing is to look at the airline’s Available Seats per Kilometre (ASKM) and Revenue Per Kilometre (RPKM). From June 2010 – May 2011 flydubai recorded increases of 161% for ASKMs and 181% for RPKMs over the previous 12 months. Not only are these huge increases, but the fact that RPKM grew more than ASKM shows that the airline is working smartly and ensuring more revenue is being generated.

Another measure of success is to look at how many flights are delayed.
flydubai’s record in this area is one of the best in the industry with On Time Performance recorded at 85%.

In addition the airline has moved towards maturity with the development of programmes to recruit and train staff at the highest level, as well as the development of its own in-house maintenance and engineering team to service flydubai’s rapidly growing fleet.

More than 80,000 people have applied to join the airline, which indicates flydubai’s strength in attracting and recruiting the best talent.
With employee numbers now just crossing the 1,000 mark, this number shows the airline is attracting around 80 applications for every position, which ensures the airline can choose the very best candidates.

With a 78% increase in the number of flights, a 100% increase in aircraft, a 150% increase in routes and a 200% increase in passengers it is easy to see why flydubai is now the second largest carrier operating out of Dubai International Airport.

Paul Griffiths, CEO of Dubai Airports, said: “In just two years flydubai has become a potent force in the region’s aviation industry. Now the second largest carrier operating out of Dubai International, flydubai has played a significant role in the continued success and growth of passenger traffic at the airport. By opening up new and previously untapped markets, flydubai is helping to bring in significant volumes of traffic from around the region to Dubai and beyond. I am confident that flydubai will continue to go from strength to strength over the coming years and I wish them all the best for the future.”

Al Ghaith commented: “I am proud to be able to announce such incredible achievements today. The flydubai team has worked extremely hard to ensure flydubai reached this point, and this success is the reward for that hard work.

“Clearly our strategy is paying off. We knew there was a place for us in the market and we have worked hard and ensured that we have made that place our own. We’ve taken the business head on, surmounted all the obstacles and made it work. When I look back over the two years that we have been flying and see how far we have come, it makes me very proud.

“Two years into our operations and we are right on track. I am confident that our strategy is the right one. flydubai is well placed to continue to forge ahead into new markets with new innovations in the future. I am confident 2011 will be another good year for flydubai.”

DP World Nava Sheva at Jawaharlal Nehru Port in Mumbai, won the prestigious Golden Peacock Award for Environment Management at an awards ceremony held at the Leela Kempinski, New Delhi.

The marine terminal was recognised for its many initiatives in environment management, some of which include optimising natural resources such as rain water, introducing Compressed Natural Gas (CNG) buses for the staff of DP World Nhava Sheva, changing the equipment and administration building lights to low energy using LEDs (Light Emitting Diodes) to reduce electricity consumption, and organising an oil spill cleanup drive with employees to protect the mangroves and the marine environment around the terminal.

India’s Home Minister, the Honourable Shri P Chidambaram was the guest of honour at the ceremony, held during the 13th World Congress on Environment Management (WCEM).

Receiving the award, Anil Singh, Senior Vice President & Managing Director DP
World Subcontinent Region highlighted that DP World is a signatory of the Copenhagen Communiqué on Climate Change and said, “We are delighted that our environmental efforts in Mumbai have been recognised with this
important award. We have initiated a wide range of environmental best practices across the region to make a very real difference to the environment, in line with DP World’s overall commitment to preserving the environment in all communities in which we operate.”

Captain Alpesh Sharma, Chief Executive Officer of DP World Nhava Sheva, said, “Conserving our energy resources and developing the future of the country are the cornerstones of the responsible business practices we at DP World Nhava Sheva undertake, and this award is a testament to the hard work and dedication of every member of the team.”

The Nhava Sheva International Container Terminal (NSICT), today operated as DP World Nhava Sheva, was set up in 1997 and was India’s first private-public partnership in the ports sector. DP World operates five container terminals in India, in Mumbai (JNPT), Chennai, Cochin, Mundra and Visakapatnam and supports a significant portion of India’s international containerised trade.

The Golden Peacock Environment Management Award was instituted by the World
Environment Foundation (WEF) in 1998.

Emirates will commence passenger flights to Baghdad from the 13th November 2011, marking the airlines’ second destination in Iraq.

Operating four times per week Baghdad will be Emirates’ fifth international destination to launch in 2011 with Basra and Geneva already operational and Copenhagen and St Petersburg to follow on 1st August and 1st November respectively.

“Baghdad is a strategically important destination for Emirates,” said His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.  “Its geographical location, coupled with the fact that few international carriers operate there, makes it the perfect destination for us to tap into and drive revenue from. With more than five million residents in Baghdad, and its surrounding districts, this new service will provide them with direct access to our vast global network.”

“Our launch into Basra, Iraq in February this year has been a resounding success with flights operating in both directions at capacity. In the four months since we began operations to Iraq thousands of passengers have flown with Emirates between Basra and Dubai seeing the route perform well above expectations.”

With 14 new passenger aircraft still to be delivered in 2011, Emirates continues to grow its network, identifying new markets with strong revenue and existing demand. The airline’s strength in recognising potential in new destination continues to hold it in good stead, following its record financial results released recently.

EK941 will depart Dubai at 07:55am touching down at Baghdad International Airport at 09:40am the same day. At 11:35am, return flight EK942 will depart Baghdad arriving in Dubai at 14:55pm the same day. The service will operate on a Wednesday, Friday, Saturday and Sunday. The service will be operated by an Airbus 330 in a three class configuration.

Emirates expects the passenger mix travelling in and out of Iraq to come from a variety of sources, with a significant skew towards industry and Government personnel. The construction, telecommunications and oil sectors are expected to make up three of the largest industry segments.
Iraqi nationals, both in Baghdad and residing outside of Iraq are also expected to be strong users of this new service. The new service out of Baghdad will provide travellers in the capital with good onward connections to many of Emirates’ global destinations including the GCC, Levant, India, China and the UK via Dubai.

Emirates currently operates a four weekly service to Basra in Iraq and has offices located in both Basra and Baghdad.

Al-Futtaim Logistics (AFL) has signed a three-year agreement to acquire 32 warehousing units at Dubai Industrial City, a member of TECOM Investments Manufacturing and Logistics Cluster.

With a total area of 30,720 sq metres, the warehouses have a capacity to store over 30,000 pallets. The core purpose of the facility is to provide AFL with a complete logistics and distribution solution, solely dedicated to the group’s key retail client, IKEA, which has outlets at Dubai Festival City and Yas Island in Abu Dhabi.

Abdullah Belhoul, Managing Director of the Manufacturing and Logistics Cluster at TECOM Investments, said, “The presence of Al Futtaim Logistics at Dubai Industrial City will add further value to our business partners. Offering a total capacity of seven million sq. feet of built up warehousing units, Dubai Industrial City is in a strong position to cater to the high demand and growing needs of this expanding sector.”

The 560 million sq. ft. dedicated industrial destination comprises six clusters featuring food and beverage, base metal, mineral products, chemicals, transport equipment and parts, as well as machinery and mechanical equipment.

Mitch Jones, General Manager, Al Futtaim Logistics, said, “The warehouses at Dubai Industrial City have enabled us to consolidate operations in a single location after operating from two locations for several years. The consolidation into one site located between Dubai and Abu Dhabi allows us to make great improvements in service efficiency and significantly reduce logistics cost for the client. The location of the warehousing facility provides us with a highly effective distribution solution to service the IKEA stores within the UAE.”

Tom Nauwelaerts, Managing Director, Al Futtaim Logistics, said, “We put the customer at the centre of all our actions, and this new IKEA warehouse highlights our ongoing commitment to strengthen the IKEA brand and enhance the customer experience at every touch point. This new warehouse operation in Dubai Industrial City will be a critical asset to Al-Futtaim Logistics and will enable us to achieve the challenging targets and objectives that we have set for the IKEA brand in the UAE and the GCC region."