| BUSINESS QATAR, MAY/JUNE 2004 |  |
On the move
The winds of change are blowing through Qatar. Trade is on the rise, and the industry is looking at new horizons. Two things are vital to any business - options and competitive rates and the logistics options available in Qatar go way beyond shipping solutions.
Today's corporate customers demand one-stop shopping when it comes to their transborder shipments, and they demand full compliance and ease of movement. Heightened concerns about border security, combined with these customer demands, have made it clear to logistics/shipping companies in Qatar, that with specialized expertise they need to improve competition.
The world is changing faster than boards can think, and far faster than logistics can respond. Gone are the days when grand plans could be made with confidence for a post-merger HQ. In today's economy one may be overtaken by further consolidation and perhaps even by the entire reorganisation of the corporation. Logistics companies are also realizing the need to think differently. Survival means scenario planning as far as possible before events happen, with rapid response plans, making every logistics dollar count. Market research can't predict the future in a rapidly changing world - it just shows what consumers and internal clients think. Logistics companies worldwide require clear short-range thinking and sharp action to steer through this current downturn, as well as accurate vision and steady nerves to see beyond.
Today's corporate customers demand one-stop shopping when it comes to their transborder shipments, and they demand full compliance and ease of movement. Heightened concerns about border security, combined with these customer demands, have made it clear to logistics/shipping companies in Qatar that with specialized expertise they need to improve competition. So are logistics companies being radical enough in globalising their operations and structures?
"In terms of market size Qatar is a relatively small market, but a fast growing and exciting one," feels Mario Miranda, general manager Barwil Qatar. "These is however, room for development as far as infrastructure and support services are concerned." Founded in 1861 as a wholly owned subsidiary of the Norwegian shipping company Wilh. Wilhelmsen ASA, Barwil's services range from simple ship agency tasks to complex outsourcing activities. A worldwide supplier of port and marine services, Barwil serves a large number of maritime clients through an expanding global network with some 227 offices in 58 countries. Barwil's Qatar office was established in October 1999 and provides in port or offshore vessel agency and husbandry services, freight forwarding and logistics requirements. These activities expand over a vast number of services by sea, air, and land and include tramp and tank agents; liner agents; cruise agency including land arrangements; air and sea freight forwarding; clearing and forwarding; transportation - local as well as within the GCC; warehouse and distribution services; project and bulk logistics; ship chandelling; OPA and owners representation; ship brokering and chartering; offshore services; crew change and repatriation off Qatar limits.
A member of the World Cargo Alliance, Barwil has formed partnerships with various freight forwarders an all trade lines enabling them to offer a comprehensive door to door service to their clients. They also represent several major Tanker (crude, chemical and product carriers), LNG carriers, break bulk and dry bulk ship owners whose vessels regularly call at all Qatari ports and offshore terminals. The liner agencies they represent or are global partners with are Wallenius Wilhelmsen Line; Eukor; Cosco Line, Samudera Shipping Line, Orient Overseas Container Line, Sitara Shipping Line, Oyster Shipping Line and LLoyds Maritime UK.
Another provider of end-to-end supply chain solutions to companies and governmental organizations throughout the Middle East is PWC Logistics. They provide supply chain solutions to a wide range of industries, including apparel and footwear; automotive; consumer and industrial electronics; consumer packaged goods; food and grocery; oilfield services and governmental and military organizations.
A publicly traded company listed an the Kuwait Stock Exchange, PWC Logistics lists its core services as third party logistics and warehousing, bonded storage and re-export, ground handling, regional transportation and express service, local transportation and distribution, international freight forwarding and bulk liquid transportation. Their end-shy-to-end solutions include demand planning; procurement; inventory management; order processing and fulfillment; delivery to the distributor both retailer or end-consumer and reverse logistics. A host of value added services like product labelling, packing, co-packing, bundling, kitting, light assembly and returns processing are also an offer. They also share strategic partnerships or relations with BAS Airport Services, American Science & Engineering Institute, Creative Tent, Rhode & Liesenfeld International and BT (Authorized Distributor).
The IT department of PWC Logistics also enjoys partnerships with Microsoft, Oracle, HP among others and provides support to offices in Qatar. Some of their key features are: undertaking IT maintenance contracts, developing B2C, B2B and eGovernment solutions and providing wireless internet connectivity solutions. They are also resellers for Microsoft and GFI. The company is ISO 9001:2000 certified.
Qatar Logistics, formerly known as Geologistics, was founded in Qatar in January 2002. Qatar Logistics is in partnership with the Geologistics worldwide network which has over 800 offices across 105 countries worldwide. Their services in Qatar include international freight forwarding, customs brokerage, transportation, warehousing and storage, relocations and inventory management.
Rohde & Liesenfeld (R & L) established their first business unit in the Middle East in Dubai (U.A.E.) in 1997 as a commercial delegation office, acting as the regional office in the GCC. In 2001 they opened the first operational business unit in Qatar and mid 2004 expanded with further operational entities to State of Kuwait and the UAE. R& L are represented in more than 35 countries with about 75 offices on all five continents.
R&L Qatar is divided into three business sectors: the general freight forwarding division "R&L Overseas", covering import and export of cargoes by air, sea and overland, warehousing & distribution as well as packing/crating services to meet the transport requirements of local importers and exporters and also private individuals for their "personal effects" shipments. The second section "R&L Solutions" provides expediting and order management services including international transport logistics for the oil & gas, petrochemical, steel, cement, fertilizer and trading industry in Qatar. All business of "R&L Solutions" is solely on contract basis. The third section "R&L Projects" offers complete project logistic services to the engineering & construction contractors, coordinates plant relocation and rig moves to and from Qatar.
In March 2002 the Rohde & Liesenfeld (R&L) group and the French Geodis Overseas signed an agreement to form a global strategic alliance, TGA - The Global Alliance. This alliance provides both partners with the opportunity of utilising each other's global infrastructure in order to better accommodate the requirements of trade and industry. The strategic co-operation does not only cover general freight forwarding activities on all continents, but also includes areas such as contract logistics, centralized purchasing of services as well as the joint development and connecting of IT systems, particularly in view of customer tailored industry solutions. Rohde & Liesenfeld is an accredited member of the International Federation of Freight Forwarders Associations (FIATA - Federation Internationale des Associations de Transitaires et Assimiles) and the International Air Transport Association (IATA) and is duly certified as per ISO 9001:2000.
Established in Qatar in 1982, Aero Freight Company has a branch office in Dubai and representative agencies all over the world. They represent UPS - supply chain solutions, are an ISO 9001:2000 certified company and an accredited member of FIATA. Some of the services they offer are import/export, clearance, total logistic distribution, exhibition handling, parcel services between Qatar/UAE/ Oman, warehousing and export packing, door-to-door services, project forwarding and road transportation to the entire Middle East, warehousing and distribution and groupage import-export (sea and land), container freight servicing and chartering. They are also one of the leading shipping agents in Qatar.
Founded in Qatar in 1989, Aramex, part of the global GDA Group, now has 132 offices in 34 countries and its worldwide partnership. Their services in Qatar include all kinds of freight services, distribution and warehousing logistics, express services, customs clearance, moving and packing, exhibition handling, shop & ship (US, UK mail services), passport and visa services, domestic services, special services like international concierge and purchasing services, and catalogue services. Aramex is an ISO 9002 certified company and is also an accredited member of IATA and ITM (Institute of Transport Management).
TNT Express Qatar was established in 1984, and has a network of offices in over 200 countries worldwide. An ISO 9001:2000 certified company, TNT is in partnership with TNT Logistics and TPG Post, the national postal operator of the Netherlands, active in Europe and worldwide. The services on offer in Qatar are courier, air freight, road, logistics services like warehousing, distribution, order picking and packing.
Some of the common services all these companies offer are tracing and tracking on-line services where customers can keep a track of their shipment and ‘hassle-free’ customs clearance.
Falcon Express, also known as FedEx and global service partners of FedEx started operations in Qatar in 1993. With offices worldwide in 212 countries, some of their local services focus mainly on air freight and involve international priority, door-to-door, pickup and deliveries and free packing.
Hossam Elmongi, senior manager Qatar Logistics says Qatar's booming economy has seen business increase by a 100%. "The rapid growth in the industry is directly related to the market boom. It is expected that this growth will continue accompanied with diversity in services and expansion in infrastructures". Raju Cherian, manager, TNT agrees with him and feels the logistics industry in the country is very promising. Philipp Luehrs, managing director R & L is of the opinion that though Qatar offers an excellent logistical infrastructure with its port connected Industrial Cities in Ras Laffan and Umm Said, logistics is still an underappreciated service industry in the State of Qatar and often misunderstood as transport and freight forwarding activities. "Whilst in Europe and the Americas a logistic service provider is already an integrated partner to the industry, offering far reaching supply chain and outsourcing solutions of various logistics processes in order to reduce total costs of ownership for a customer and allow the client to solely focus on their core business, there is only little understanding of these opportunities amongst the industry in Qatar," he says. "Surprisingly the companies taking most initiative to streamline their logistic processes and benefit from such concepts are not necessarily the foreign European or American companies but rather local companies like Qatar Petroleum and its subsidiaries," he feels.
Qatar Logistics is not complaining. They have seen a 100% increase in business over the last couple of years. The other companies too have reported an increase in business thanks to Qatar's booming economy though Mohammad Alkhas, general manager Aramex, feels that while Qatar's economy may be affected by the boom, "the respiration through the layers of business is not happening at a fast pace." So does this mean an ease in pricing standards? Most of the companies cite market research and global pricing as key factors that determine pricing. Alkhas, says shipping rates with sea lines and trucks are another aspect that is taken into consideration. However, "R&L Solutions" team benefits from win/win situations with their customers. For instance by consolidating the orders from various customers their buying rates decrease and their pricing is designed that these savings are equally shared between Rohde & Liesenfeld and their clients. Further the outsourcing solutions offered by them too decrease the overheads and expenses of their customers up to 60% of a business unit whilst R & L easily accommodates such business into an existing logistic infrastructure at far lower expense. The "R&L Projects" section too is predominantly working an "cost-plus" agreements, working out the most economical logistics concept for their clients and doing the budgeting for the freight and logistics portion. Companies like Aero Freight too have special prices for the local market that vary an a case-to-case basis.
Safety is a big issue with logistics companies as well. While most people may think that health, safety and environment (HSE) risks are low compared to a manufacturing or construction environment this is not necessarily so. It only takes one small incident during storage, distribution or use to make an impact on health, safety and the environment," says Luehrs. Most logistics companies in Qatar adhere to international safety standards and have the necessary accreditations. R & L all the Same, believe in making sure every new employee receives a comprehensive HSE Manual and regular HSE training lessons.
A global reach combined with dedicated local market knowledge enables logistics companies in Qatar to offer customers tailor-made professional services. The key to capturing people's passion is showing how logistics companies' operations and infrastructure builds a better kind of world, not only for individual people and their families, but also for the community and for the whole of humanity. Then people will be proud to work for them, and to buy their products and services.
