Quick News: Thursday 12 Jan 2006

January 12, 2006 by SwizStick  
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Abu Dhabi apparently thinks it can compete with Dubai’s extensive logistics infrastructure:

Abu Dhabi has announced plans to expand both its airport and seaport and has already successfully launched its own airline, Etihad. Also important was the government announcing their expansion of the sprawling Industrial City of Abu Dhabi (ICAD) by launching the 10 km2 ICAD 2.

Yet, with such grandiose steps toward competing with Dubai as the region’s industrial and logistics hub, project cargo specialists seem certain that Dubai will maintain the lion’s share of the logistics business, especially project cargoes.

“I don’t see room for two logistics hubs,” says Paul Smith, Director of Commercial Operations for Petrasco, a Global Project Logistics Network (GPLN) member in Dubai, “The problem is Dubai and Abu Dhabi are so close, less than one hour drive.”
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“With Dubai’s plans to build a new airport at Jebel Ali which will be bigger than London Heathrow and Chicago O’Hare put together, I can’t see any other country or emirate coming close to taking their title of logistics hub away from them,” said Smith.

“For sure they will lose some business but nothing major.”

And as for the dent that Etihad will make on air cargo, Paul Smith thinks that it is yet to be seen. “You’ve got to ask yourself how will this region accommodate another mega-carrier as this will be what they [Etihad] become once they re-build their airport and take delivery of all these new aircraft,” said Smith.

“We already have two established, young, and aggressive carriers in the region [Emirates and Gulf Air], both working out of mega, ultra modern hubs that are only 40 minutes flying away from each other, Dubai and Doha. Abu Dhabi will sit geographically in the middle of these two, which looking at it from an economical point of view, there is no way it could be viable.”

This is an official press release, so take the info with a grain of salt, but according to a study done by the Aberdeen Group, most mid-size companies lack sourcing controls, etc leading to poor supply chains that cost such firms an estimated $134 billion annually:

“Mid-size enterprises missed out on the first wave of supply management automation and improvements,” said Tim Minahan, Aberdeen’s SVP, Global Supply Research, and author of the report. “Continued pressures to reduce costs and compete in global markets have made strategic sourcing improvements for mid-size firms not just a priority, but a necessity for survival.”

According to the study, more than half of mid-size companies have either launched initiatives to formalize and improve strategic sourcing capabilities within the past year or will do so within the next year.

Aberdeen recommends the following practices to formalize and improve strategic sourcing:
• Develop and enforce standard sourcing procedures company-wide;
• Hire sourcing and commodity expertise, including consultants;
• Improve access to and quality and analysis of corporate spending;
• Enlist executive support for resources and policy changes; and
• Leverage commercial sourcing management automation.

And China has officially reported their trade surplus to be $102 billion dollars, triple the previous year’s surplus of $32 billion.

Quick Links – March 5, 2006

CBP 10+2 ISF 2009 Outreach Schedule

Australia’s new customs system still experiencing problems

Shanghai port overtakes Hong Kong