30_SHD_May:ShD re-design 1/5/07 09:39 Page 32
■ Distribution Services
...Continued from p.30 tune of US$4.15 billion, these developments
appointment as Mead Johnson’s third party are a definite boost to the logistics industry
logistics provider in Thailand,” says Mr. both in the short term and longer run.
Shankar. As the region continues to prosper – the
Under the agreement, GAC’s scope of work UAE’s real GDP growth rate for 2006 is over
for the global nutritional brand includes 10 per cent – the soaring purchasing power is
providing warehousing and transportation for leading to increased consumption of
its raw and packing materials as well as everything from grocery to luxury goods.
finished goods for export to certain Asia Retail logistics is a sector which is directly
destinations. benefiting from this development.
Besides the Mead Johnson account, GAC At the same time, greater demands will be
will also be targeting other international and placed on regionally-based logistics players in
domestic manufacturers and distributors in terms of handling, storage and transportation
Thailand. “The multi-user and shared capabilities as well as capacity.
resources concept will enable us to be more “Maintaining GAC’s leadership position in
competitive and cost efficient, as proven in our traditional home market calls for
many other markets,” explains Mr Shankar. continuous investment,” says Fredrik
“This is the perfect opportunity for GAC to Lindblad, Business Manager 3PL Services for
Fredrik Lindblad
demonstrate its commitment to the market and the Middle East. of cold chain logistics. “Take the supply chain
the existing clients like Mead Johnson, by “Due to growing customer demands, our of moving chilled cargo such as butter, juice
providing the infrastructure which will satisfy flagship GAC Logistics Park in the Jebel Ali concentrates, sausages or pharmaceuticals
their strict hygiene and quality requirements. Free Zone was further augmented with a originating from all over Europe as an
This is a logical regional progression from our US$15 million expansion. The US$40 million example,” suggests Mr Lindblad. “Frequent
ongoing relationship in Indonesia since and reliable reefer service to key destinations
2001,” he adds.
As the [UAE] region
in the Middle East, cold chain facility
continues to prosper ...
equipped with chilled and deep frozen
Middle East
Elsewhere in the Middle East where it all
retail logistics is a sector
storage, pan-road network with temperature-
controlled fleet of vehicles for re-distribution
began for the GAC Group in the 1950s, the which is directly benefiting regionally – are essential to ensure absolute
company continues to pump hefty investment
from this development.
temperature integrity throughout the supply
to enhance its flagship distribution centre in chain, and that the products reaches the
Dubai. Fuelled by petro-dollars, the Middle facility now offers more than 115,000 pallet consumer safe and fresh as well as in good
East has been experiencing exceptional positions, spreading over 115,000 sq m – an time.”
growth in recent years. With a combined GDP area equivalent to 10 football pitches.”
of US$105 billion in 2006, the regional With this investment. GAC is well Information Technology
economy continues its bullish run this year. positioned to serve the present and future Another area of investment for GAC is its in-
Many Gulf countries are injecting the oil and logistics needs of the customers. “From Jebel house warehouse management system
gas revenues into developing infrastructure as Ali, we have the infrastructure and network to GACWare used to support its 3PL operations
well as expanding their economy through provide customers with a comprehensive globally. This offers customers instantaneous
international trade to become plugged into the range of transport options and services into product integrity and accurate inventory
world markets. and out of the region, as well as distribution controls and interfacing capabilities.
This diversification strategy is paying off. and warehousing expertise,” says Mr It generates management reports and key
The region is now in the radar of Lindblad. “In addition, we are even better performance indicators as well as helping to
multinational companies seeking to penetrate equipped to provide a springboard for maximise space utilisation. GAC’s IT systems
the region for business growth and higher companies setting up and growing in the sets the company apart from its competitors
profit levels. Middle East today remains a Middle East region, with excellent and holds its global network together, by
relatively untapped market as compared to distribution channels also available into the providing customers relevant information,
highly developed markets such as Europe. Africa and Indian Subcontinent.” when, where and how they want it.
Dubai’s import market alone stands at GAC is also particularly strong in the area www.gacworld.com
$17billion per annum and the
GAC's Distribution Centre in Thailand
Emirate is a gateway to a $150
billion regional import market.
The profit potential from the
growing import market as well as
the tourism industry is enormous.
At the same time, multi-billion
dollar investments in construction
are also on-going or being
planned for tourism, residential
and transportation projects
throughout the Gulf. From
construction of the Palm Islands
targeted at the super-rich in
Dubai to the development of
Kuwait’s Bubiyan Island into a
world-class deep-sea port at a
32 ShD May 2007 www.PressOnShD.com
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