Recently we celebrated a very momentous occasion as we launched our new Integrated Logistics Centre at the Jebel Ali Free Zone (Jafza) in Dubai. Besides fitting in to our strategy of becoming the trusted and reliable answer to every logistical concern of our customers, our facility also fosters the region’s efforts to becoming a premier global logistical hub as well.
To understand how, let’s take a brief look at what the current scenario is in the Gulf Cooperation Council (GCC) area.
Market overview
The disruption of global supply networks across industries due to the pandemic resulted in re-evaluation of the long-term health of supply chains by governments and businesses worldwide. Coinciding with the recent scaling up of ambitious national development programs in GCC nations, this resulted in the near recreation of a sustainable and resilient supply chain rather than making significant changes to existing structures in the Middle East.
While the Middle East is predominantly an import-heavy region for most industry sectors – apart from the non-hazardous chemical industry – it is a large enabler of trade across the globe. The UAE is one of the fastest-growing countries in the GCC region having emerged as a transshipment hub between Asia-Europe, CIS-Africa amongst other trade routes. Catalyzed by the success of the Dubai Expo, the logistics market in the UAE is expected to generate revenues of over $30 billion by 2025, according to a Ken Research report. This has encouraged several companies to invest in the country to set up businesses and access the GCC and the Arab world.
This creates a need to provide fulfilment services for exports and imports from the UAE and for other Middle Eastern countries that use UAE as a gateway to global trade. A recent study by Mordor Intelligence forecasted that the warehousing and distribution market in GCC will register a CAGR of more than 5% during the period 2022-2027 due to an increase in infrastructure as well as higher government and private investments to develop the region into a robust logistics hub with pro-business regulatory policies. Besides this, of late, the increasing popularity of e-commerce, over the last year, as well as global trading requirements have further amplified the need to expand the availability of warehouse space within the region.
Naturally, in such a scenario, the market for warehousing and distribution services is highly competitive. So why should you pick our new Integrated Logistics Centre?
Comprehensive integrated logistics partner
Traditionally, ocean transport and inbound logistics & distribution were fragmented across multiple stakeholders in the region, which made the overall logistics experience very complex and stressful. Until recently, Maersk was partnering with multiple warehouse providers in the UAE to offer warehousing and distribution services to its portfolio of customers. Having a Maersk-owned warehouse, distribution and fulfilment centre in the UAE enables us to provide you with a full spectrum of logistics services from end to end.
State-of-the-art facility
The facility at Jafza will span10,000 m2, offering multiple storage options, including selective racking, double deep racking, and bulk area. Equipped with a total storage capacity of 80,000 m3 and advanced technology, it will cater to various types of goods across sectors such as Retail & Lifestyle, FMCG, Automotive and Petrochemicals.
Tech-enabled capabilities
The centre will be powered by an advanced warehouse management system that uses modern technologies and digital solutions for efficient inventory management, trackability at each unit level, higher visibility and deeper insights. An enhanced transport management system has also been established for inland transportation between Jafza and key manufacturing and consumption hubs.
That’s not all. We’re also working with customs teams to develop an error-free and fully compliant, integrated digital submission platform that creates a simple and trackable overview of the process. This will reduce manual entries across all entities in the supply chain, thus reducing your lead time.
Ease of accessibility for customers
Thanks to its proximity to seaports and Al Maktoum Airport, we can connect your cargo movement via ocean, land and air to our facility in Jafza, where you can store inventories. Eliminating a layer of handover helps us give you a quicker turnaround, with ease of accessibility from manufacturing hubs and for onward distribution of the goods to your consumers.
Flexibility and agility
Along with all the changes required for an efficient supply chain, the pandemic highlighted the importance of flexibility in warehousing and distribution. With our facility, you can choose to slow down or speed up the dispatch of your goods or store your inventories in case there is a change in the delivery destination based on market demand or any other unforeseen contingencies.
Sustainability promise
As a green responsible entity, sustainability is the highest priority for us at Maersk as we continue to integrate decarbonisation initiatives in our logistics solution offerings to our customers. Continuing our commitment to the goal of net-zero carbon emissions by 2040, the go-green initiatives at our facility in Jafza include the use of solar panels for the generation of green energy and exploring the optimisation of net-zero biofuels in our trucks as well.
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