Holistic approach is crucial for the Middle East to become a logistics hub

Global Logistics Forum to provide platform for continued dialogue in February 2011

Viewing the Middle East region as a whole as well as a good understanding of the global trends in dedicated industries and the lacking regional capabilities are crucial if the Middle East were to realise its potential of becoming a logistics hub.

This was the assessment made by hands-on global industry experts following two days of discussion during the very first Global Logistics Forum (GLF) held on 15 to 16 March 2010 under the patronage of His Highness Sheikh Hamdan Bin Zayed Al Nahyan, the Rulers Representative in the Western Region, and organised by Aim Events, the events management division of Abu Dhabi University. And, with the event successfully highlighting the relevance of logistics and transport in the Middle East, a second edition of the Global Logistics Forum has been scheduled to be held in February 2011.

“In the light of increasing global trade and transport flows, logistics and transport play a strategic role for the Middle East,” said Prof. Dr.-Ing. Frank Straube, Cooperation Managing Director, Abu Dhabi University-Berlin Institute of Technology (ADU-TUB). “However, the development of a holistic logistics strategy for the region and to carefully execute it – together with policy makers, business organisations, and researchers – is essential in order for the development of the region into a global logistics hub.”

“One simple step in that direction, also emphasized by the panel of distinguished international speakers at GLF, may be the establishment of a neutral logistics association for the GCC region, serving and integrating all current and future stakeholders in this regard,” Prof. Straube added.

In the context of viewing the region as a whole, industry experts at the forum indicated the need for cooperation and collaboration amongst countries in order for logistics and transport infrastructures and services to be fully integrated. An example given in this regard was the establishment of a railway network in countries like the UAE, Qatar or KSA which is meant to address an increasing regional logistics services demand from the retail and industry sectors.

“These infrastructure developments are currently undergoing critical planning and design phases and may run the risk of having a non-integrated multimodal transport system, if the countries in this region do not collaborate,” Straube explained. Straube further indicated that such collaboration start even with simple things such as having a region-wide common understanding and definition of logistics and transport.

“We have seen that the definitions by the experts and company representatives vary between GCC, GCC + East Africa, GCC + North Africa, GCC + India, etc.,” Prof. Straube revealed.

More than 200 local and regional logistics professionals attended the successful forum wherein they were presented with a variety of topics from internationally renowned industry experts. The line-up of distinguished international industry experts presenting their views on a variety of topics on transport and logistics has attracted huge attention in the logistics, political and academic community.

“The global and local trends and strategies presented by the speakers clearly showed the need to further boost international knowledge and experience exchange. And as one of the delegates at the forum stated that, ‘The Middle East needs this event on a regular basis in order to establish the needed communities for the whole region’,” Straube said.

Amongst the functions that the GLF plays include: enabling ongoing knowledge exchange between infrastructure planners, policy makers, business developers and the academic community for the whole region. Apart from these, the forum has also examined the requirement and defined guidelines of developing dedicated training and education programmes in response to the lack of skilled logistics professionals in the Middle East region. It has enabled joint research projects between local and national universities, companies and governments as well as delivered best practices and methods of resolution for local logistics challenges.

“One key lever to be addressed is to have Marketing for Logistics and Supply Chain Management at an early stage in education such as at high schools and undergraduate university levels. We would also need to emphasise vocational and executive training regarding dedicated topics along with international exchange of people between universities and companies to create local knowledge based on global context,” Prof. Straube concluded.

The Global Logistics Forum was supported by the Institute for Vocational Development, a member of the Abu Dhabi University Knowledge Group; The Chartered Institute of Logistics and Transport; and BVL, the German Logistics Association.