2 August 2004

DUBAI - Dubai Metals and Commodities Centre (DMCC) has confirmed that Pacorini Group, one of the international logistics companies specialising in the warehousing of commodities, has joined DMCC in the Dubai Commodity Receipts (DCR) process. Simon Maddocks, Managing Director, B Pacorini Spa, said: "We are in the process of establishing a company with DMCC and we will be the first logistic company to be incorporated in DMCC for the DCR system."

The Italian-based group, one of the world's largest shippers and processors of green coffee and leading non-ferrous metals warehouse company in the Mediterranean, offers logistics solutions on a world wide basis. The group has been operating in Dubai for last two years through its agent Peninsula Shipping Company LLC. During this time more than 150,000 tonnes of non-ferrous metals have been shipped into their Dubai Port Authority - provided warehouses in Jebel Ali Port. The Group has an international network with locations in Northern Europe, North and South America, Middle East, recently started South East Asia and China via a new joint venture company in Singapore.

Maddocks, further said: "Dubai is proving to be good destination for non-ferrous metals shipments particularly to Far East destinations. Our company is broadly looking at expanding operations to Agri- commodities and non-ferrous metals."

Dr David Rutledge, Executive Director, Commodities, DMCC, said: "Pacorini will be the company to join us in the DCR system. Along with Pacorini we are also scrutinising other warehouse companies, which are financially strong enough to satisfy our criteria for having them on the board. Currently about 10 companies have approached DMCC with their services."

Rutledge said: "The role of Dubai as a commodity marketplace extends far beyond the borders of the United Arab Emirates, not only supplying the local market, but also to act as transhipment and staging point for the Middle East and more distant international markets. DMCC's mandate is to increase the value and volume of traded commodities in Dubai, having regard to this broad market scope.

In fulfilling its mandate, DMCC is developing value-added products and services in line with the needs of the growing market and its participants, both direct and indirect.

These include commodity trading companies, raw materials processors, logistics providers, storage/warehousing firms and banks."

The development of sound commodity financing tools is a central part of this process. Hence DMCC is offering an innovative and exciting product to facilitate the growth of commodity trade finance and risk management - the Dubai Commodity Receipt (DCR). DCR is a negotiable warehouse receipt that improves the financing of commodity trade and combat fraud.

The DCR System is a mechanism for the creation of warehouse receipts for goods stored in Dubai, but also a facility within which these receipts can be transferred among members of the system and used to obtain finance from financier members.

In order to transact business on the DCR system a trader, warehouse operator, collateral manager, inspection company or bank must first have been approved by DMCC as a DCR Member. DMCC-approved Issuers issue DCRs on-line.

BY SANDHYA D'MELLO

© Khaleej Times 2004