January 31, 2008

Transworld Logistics invests AED 16 million to expand state-of-the-art warehouse at Jafza

Leading international logistics provider seeks to leverage shipping trade growth in the Middle East

Transworld Logistics, one of the leading international providers of integrated logistics services in the Middle East, has inaugurated today (Thursday, January 31, 2008) its expanded state-of-the-art warehouse facility within the Jebel Ali Free Zone (Jafza). The company had earlier committed AED 16 million to expand its existing warehouse facility as a part of its aggressive strategy to leverage the booming trade market in the region, which has achieved six to seven per cent average annual growth during the past few years. Present at the inauguration of the new facility were Salma Hareb, Chief Executive Officer, Jebel Ali Free Zone & Economic Zones World; and S. Ramakrishnan, Chairman, Transworld Group of Companies, in addition to top-ranking company officials from Transworld Group.

Fully equipped to accommodate 23,500 pallets, the warehouse will also boast of a separate temperature-controlled storage facility, which can hold more up to 800 pallets. With an overall cargo capacity of over 1620 teu (40,500 cubic meters) and a 10.8-meter high double deep racking system, the warehouse also incorporates 22 loading and unloading bays with hydraulic dock levelers and large staging areas for special cargo handling. Upon completion of the expansion process in (year), Transworld’s 16,000-square meter warehouse will be one of the few Middle Eastern warehouses to have a complete range of top-of-the-line facilities such as an additional 2000-square meter covered dutch barn and a 4500-square meter open yard storage.

Commenting on the expansion, S. Ramakrishnan, Chairman, Transworld Group of Companies, said, “The Middle East region is in the midst of exciting global, regional, and local developments in terms of transport and logistics, and with the phenomenal growth of global and regional trade, in particular between Europe and Asia, faces unprecedented opportunities to capitalise on the unique strength of its strategic geographic location and excellent accessibility by air, land, and sea. We intend to address the current surge in demand for outsourced logistics in Dubai through the expansion of our warehouse in Jebel Ali Free Zone, where we are now better equipped to offer complete supply chain solutions that include distribution.”

The demand for third party logistics is booming in the Middle East, fuelling the number of companies supplying 3PL services in the region. This has created a competitive marketplace where customers can dictate their terms and companies must differentiate themselves from competitors in order to survive. Recognizing the tremendous surge in sea and air freight activities in Dubai, Transworld’s decision to strengthen its Jafza-based operations follows Dubai’s movement towards becoming a major distribution and transshipment hub for India, Middle East, Africa and Europe.

“Third party logistics operators (3PLs) perceive the Middle East to offer more growth potential for logistics and transport than either North or South America, with up to 25 per cent of 3PLs stating in a recent study that their business expansion strategies would include development of their Middle East trade routes and infrastructure. As such, we are expecting tremendous growth potential and expansion, based on additional research that reveals the global outsourced logistics market to increase from USD 440 billion to USD 590 billion by 2010,” added Ramakrishnan.

Employing its ISO 9001:2000 and Environmental Health and Safety (EHS) certified practices, Transworld ensures that the client’s requirements are met professionally and efficiently, while facilitating faster cargo turnaround and enhanced accuracy in data and inventory management due to its strengthened trailer fleet and integrated warehouse management system (WMS). In addition to its WMS, which offers full integrity of data and other value-added functions for its customers, the new warehouse will also utilize bar coding and radio frequency identification (RFID) technologies that promote people efficiency and cost effectiveness. Upon completion, the new warehouse will benefit Transworld’s clients by offering reduced handling of cargo and flexible warehousing solutions.

“Massive government infrastructure investment is being committed to ensure that the Middle East will maintain its position as an essential logistics hub in the foreseeable future. As part of our dedication to provide our customers with world class integrated logistics solutions, we are looking at extending the breadth of our expansion to Dubai Logistics City, where we plan to set up another base on a 106,000 square meter area,” concluded Ramakrishnan.

Specializing in the integration of all functions across the supply chain, from sourcing of raw materials and product warehousing to the distribution of finished goods, the company’s movement towards improving its resources has provided the Transworld Group’s worldwide headquarters in Jafza a strong edge over its competitors, attracting leading international and regional brands such as Panasonic, Mayflex and Bajaj International. The activities of the Transworld Group include ship owning, feeder operations, shipping agencies, supply chain management, ship management, freight forwarding and non-vessel operating common carrier (NVOCC) operations.