|27 April, 2019

Logistics 'prime gainer' as Expo 2020 Dubai deals awarded

So far Expo 2020 Dubai has awarded 56% of contracts to small and medium-sized enterprises

Hundreds of Hatta visitors and residents sign up to volunteer for Expo 2020, as total number of registrations hits 50,000. Image used for illustrative purpose.

Hundreds of Hatta visitors and residents sign up to volunteer for Expo 2020, as total number of registrations hits 50,000. Image used for illustrative purpose.

Expo 2020 / Handout via Zawya
UAE - With less than 19 months left for the inauguration of the Expo 2020 Dubai, its organisers have further speeded up the pace of allocating contracts to thousands of local and foreign firms to ensure timely preparation of the event, which is set to be the largest of its kind in the Arab World, said experts.
 
The groundwork for the 173-day milestone Dubai exhibition – which expects to welcome 25 million visitors and more than 200 international participants from 190 countries – have already spurred business opportunities for various sectors with logistics being one of the prime gainers,
 
So far Expo 2020 Dubai has awarded 56 per cent of contracts to small and medium-sized enterprises (SMEs). Meanwhile, more than 26,000 companies from 150 countries have recently applied to be involved in the event.
 
"When foreign companies get contracts in the UAE, they need professional support of logistics specialists with wide local and international network to move their set up and equipment to the Gulf country," said Shailesh Dash, the chairman of Dubai-based Gulf Pinnacle Logistics (GPL).
 
A logistics and transportation company advised by Regulus Capital, GPL aims to become a Mena-focused fully integrated logistics and transportation holding company.
 
"Contractors of Expo 2020, which is extraordinarily big in magnitude, therefore rely on reputable and experienced logistics players to become their strategic and operational partners. After all, freight forwarders do much more than moving containers. We guide organisers, contractors and exhibitors throughout different customs procedures, time frames and operational complexities,” stated Dash.
 
Rodney Viegas, CEO of AbdulMuhsen Shipping (AMS) and So Safe Logistics (SSL), two portfolio companies owned by GPL, said: "Thanks to the increased momentum of Expo 2020 preparations, the logistics sector in the UAE is witnessing a business boom, when other sectors are observing slow growth.”
 
According to the 2019 Agility Emerging Markets Logistics Index, it ranks first in the region and third globally.
 
"Expo 2020 is expected to drive the logistics and supply chain segment even further and cement the UAE’s position as a global leader in logistics," remarked Viegas.
 
"With our strong global agent network, we are equipped to provide end-to-end logistics solutions to fulfil the client’s comprehensive list of logistics requirements on time," he added.
 
Dharmesh Rustagi, Head of Logistics Operations at AMS and SSL, said: "The throughput of non-containerised cargo Jebel Ali Port has been experiencing a steady upward movement with demand being driven by Expo 2020."
 
"The fact that AMS and SSL collectively operate a land area of more than 46,000 sq m and a built-up warehouse area of more than 18,000 sq m in the Jebel Ali Free Zone provides us with an advantage to be the go-to logistics provider for contractors "during the largest exhibition of its kind in the Arab World," stated Rustagi.
 
Established in 1991, AMS handles the entire gamut of logistics services, which involve consolidation, warehousing, transportation and shipping.
Gulf Pinnacle Logistics had acquired a 75 per cent equity stake in AMS in 2014. AMS handles the highest number of LCL (less than container load) console containers in the Jebel Ali Free Zone.
 
“Thus, GPL and its portfolio companies are ready to deal with the expected increase in demand for breakbulk and project cargo handling services in the run-up to Expo 2020 Dubai,” stated Dash.
 
GPL aims to become an ‘integrator’ of the highly fragmented mid sector market, encompassing logistics operations, freight-forwarding, warehousing, road transportation, courier and last-mile delivery services, it stated.
 
To date, the company owns majority stakes in four assets involved in warehousing, CFS operations, student bus transportation and courier services, it added.-TradeArabia News Service

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