We serve coffee and tea for a warm welcome to the conference.Conference Team
April 26-27, 2017 Ritz Carlton Hotel Manama/Bahrain
“Bahrain has continued to achieve significant steps in the logistics industry over the course of 2015 and 2016. Infrastructure and business facilitation procedures are important pillars for the progress, as is stakeholder communication and consultation. Constant dialogue and networking amongst the industry’s professionals is key to enabling success, which is why I am proud to hold the 2nd GCC Logistics Conference under my patronage. Coinciding with Logistics Day 2017, the conference reaches out to business professionals, politicians, media representatives, students and to the public, making it a showcase of the service quality and the attractive jobs that the industry has to offer."
H.E. Mr. Kamal bin Ahmed Mohammed, Minister of Transportation and Telecommunications, Kingdom of Bahrain
The date for the 2nd GCC Logistics Conference was deliberately chosen to coincide with the Supply Chain Day on April 27, 2017. The aim of the event, which was initiated by BVL International in 2008, is to raise awareness of the role of logistics in everyone’s life. Logistics Day enables the public to visit factories and to meet logistics companies. For students considering a career in logistics, it is an excellent opportunity to get in touch with potential employers.
Supply Chain Day 2016 - Key Figures:
H.E. Mr. Kamal bin Ahmed Mohammed, Minister of Transportation and Telecommunications in Bahrain and Prof. Dr.-Ing. Raimund Klinkner, President and Chairman of BVL International will open the Supply Chain Day in a live connection to Berlin.
Logistics is all about being in the right place at the right moment. It is thus not surprising that many logistics service providers – and indeed, I am proud to note, a large number of them from Germany – are currently planning to expand their activities in Bahrain. Having achieved a major leap forward in terms of efficiency and service quality in recent years, the Kingdom is emerging as an attractive location for advanced services in the Gulf region. As the Ambassador of Germany to the Kingdom of Bahrain, I should like to point to the important role of logistics services in our economy, which is also reflected in Germany's leading position in the World Bank's Logistics Performance Index. The 2nd GCC Logistics Conference is a most attractive opportunity for establishing contacts with potential partners and for evaluating cooperation options. The conference date was deliberately chosen to coincide with the German Initiative of BVL's Supply Chain Day, underpinning the intention to reach out to the community, including young professionals and skilled graduates. As one of the patrons of the 2nd GCC Logistics Conference, I am delighted to welcome you to Manama for a discussion of present opportunities and future potentials.
Mr. Alfred Simms-Protz, Ambassador of Germany to the Kingdom of Bahrain
Meet experienced Top Managers
Minister of Transportation and Telecommunications Kingdom of Bahrain
Ambassador of Germany in Bahrain
President and Chairman of BVL International
CEO of TransCare GmbH
Director, Global Materials, Logistics and Freight Management of AGCO
Managing Director Bahrain-Qatar–Kuwait, Kühne + Nagel Middle East & Africa
CEO/Managing Director of APM Terminals Bahrain
Secretary General of Global Shippers Forum
Regional CEO West & Central Asia Region of MAERSK
Founder of XU Exponential University of Applied Sciences i. Gr. GmbH
Former: Mayor, Member of European Parliament, President of Port Authority, City of Venice
CEO of Bahrain Airport Company
GCC General Manager of Almajdouie
Regional Manager of Turkish Airlines
CEO of First Bahrain
Vice President Investments of Mumtalakat
General Manager Supply Chain, Al Jomaih Automotive KSA
Senior Vice President Saudi Arabia, Bahrain & Omar of Agility Bahrain
President of Bahrain Customs
Acting Manager – Strategy Supply & Planning, Aluminium Bahrain (Alba) B.S.C.
Group Leader Technical Research Division, TOYOTA InfoTechnology Center Co., Ltd.
Customs Saudi Arabia
Listen to top management speeches
and enjoy all evening events
We serve coffee and tea for a warm welcome to the conference.Conference Team
We serve coffee and tea for a warm welcome to the conference.Conference Team
We serve coffee and tea and finger food.Conference Team
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Interview with the Chief Executive Officer of APM Terminals Bahrain
In Bahrain APM Terminals operates the Khalifa Bin Salman Port, which is the only commercial port in the Kingdom. The container terminal in KBSP is set up as a transshipment hub for the region but specifically suited, due to its geographic location, to serve the northern gulf. Besides running a container terminal we also offer various other services, for example CFS and LCL stripping and warehousing, container stuffing, General Bulk and Livestock operations. We also operate the passenger terminal for all cruise and passenger vessels that call Bahrain. Outside of Bahrain, but still in the GCC, APM Terminals also have operations in KSA and Oman in the form of Joint Ventures with strategic partners. APMT is a major shareholder and has the management contract to run the Port of Salalah, which offers not only container services, but also the handling of various general cargoes, dry and wet bulk. In KSA we are 50/50 JV partners with YBA Kanoo in Kanoo Terminal Services (KTS), which is a logistics provider offering an array of services all across the Kingdom including trucking, container depot services and container repairs as well as other value adding services for our customers.
APM Terminals globally employs 22,000 people, and in 2016 annual revenue was 4.17 Billion USD. We operate 73 ports / terminals in 69 countries and 140 inland services facilities in 39 countries. We are about the 3rd largest port operator in the world, however have the largest geographical spread. In Bahrain we employ approx. 500 people directly and approx. 400 people on contractual basis.
As the Managing Director, I can talk about Bahrain, and there is no doubt that 2016 was a difficult year and this has affected all businesses including ours. We had a marginal increase in local container throughput of around 3%, however we had a 45% decrease in our general cargo throughput compared to 2015. This is obviously a function of the market that we are operating in, which is quite heavily affected by the oil price. The beginning of 2017 has shown some mild improvement so far, which is driven to a certain extent by some of the major projects in Bahrain, which are stimulating more consumption.
As everyone knows the markets are, generally speaking, quite challenged at the moment and therefore our focus is, for the time being, more around strengthening our existing businesses rather than in-vesting in too many new ones. There is also quite a lot of capacity in the GCC market right now, certainly enough to cope with the existing demands and more. One thing that we are very specifically focusing on to make our businesses stronger and more customer centric is offering more digital solutions both globally and locally. One of the advantages of belonging to a larger global organization is the ability to leverage that size and get adequate support for such initiatives. Locally in Bahrain we have invested quite significantly in the last few years in upgrading our IT solutions on both the General Cargo and Container side of our operations not only for our Customers benefit but also for the safety of all people who use the port – for example laser technology on our yard equipment which prevents containers being knocked down as well as DGPS technology to locate containers in the port. This drive will only continue – an example of this is our “LIFT” project. LIFT is a customer portal offering a wide bouquet of e-services which we are right in the middle of rolling out as we speak. We expect full deployment by beginning Q2 this year.
The excess capacity in the region coupled with low domestic/gateway volume is one of the key factors impacting our growth aspirations in the upper-gulf container market. In spite of which we have made good progress in developing interest amongst the carriers due to our cost competitiveness as well as efficient operations. Also the volatile market of some of the major commodity segments like steel and sugar have also had negative impact. The government of Bahrain has made some decisive moves to attract more foreign direct investment in the country, which is expected to stimulate the local volume growth that we are lacking.
A higher awareness to the market of all the unique value propositions that not only APM Terminals offers, but also the Bahrain market as a whole. There are many advantages of doing business with and in Bahrain and it is very important that we get the message out so people realize and start taking advantage of these benefits.
Like I said in my last answer, I think that there are many, however if I have to pick only a few to focus on I would probably say ease of doing business, geographic location, quality of the infrastructure and people. People is a very strong one – investors in Bahrain will find that they have great access to both highly skilled and unskilled workforce which is cost competitive. Besides access to a good labour and talent pool, Bahrain also offers strong regulation which ties in with my point about ease of doing business. The standard of our infrastructure in Bahrain is world class and the location offers superb ability to launch not only into the local market, but also into our neighbour – KSA, the largest market in the region and one of the biggest in the world. Lastly back to the people side – I have worked in about 6 countries in my career and travelled to many more, and I can say very truthfully that Bahrainis are among the friendliest and most welcoming people I have come across. This makes working and living in the Kingdom a pleasure.
Interview with the Chief Executive Officer of Bahrain Airport Company
Bahrain Airport Company is a semi-government company established in 2008 to operate, manage, and develop Bahrain International Airport as sustainable and commercially competitive airport. Driven by a clear vision to provide a friendly and efficient airport for a proud country, BAC has been responsible for elevating the airport’s infrastructure, facilities and services and sustaining operational and commercial excellence, for the benefit of travellers and stakeholders alike. BAC plays a central role in facilitating the growth of tourism and aviation sectors in line with the Kingdom’s Economic Vision by continuously seeking for lucrative opportunities to optimize BIA’s revenue streams through a mix of aeronautical and non-aeronautical activities that will ultimately increase BIA’s profitability and solidifying its status as an attractive aviation hub in the region.
At Bahrain Airport Company, 700 employees are all about delivering service excellence in managing Bahrain’s gateway to the world and running a friendly and efficient airport.
Our overall strategy for this year and for the longer term is to consistently grow BIA’s capacity, connectivity and network to complement Bahrain’s progress as a tourist, business and aviation Hub. All our efforts and resources at BAC are currently being directed towards the success of the Airport Modernization Program. By 2018, the new modern, state-of-the-art passenger terminal building will increase BIA’s capacity by over 50%, expand its services and commercial offering and optimize its operational efficiency. On an operational level, we plan to continue to invest in our infrastructure, facilities and services to sustain BIA’s reputation for superior customer service, speed and operational efficiency, BIA’s key differentiators vis-a-vis its regional counterparts. On a commercial front, our traffic development plans for 2017 are three-pronged: we will continue to focus on new, un-served markets and tap into countries such as Bangladesh, Nepal, Malaysia, Indonesia and China, which are not currently being served by BIA, and which hold great potential for high-growth yields; we are also looking to increase frequencies to under-served markets such as India, Pakistan, Philippines and Sri Lanka where we see demand soaring; and we will persist with customer retention initiatives to keep our clients happy and explore opportunities to grow business collaboratively. At last year‘s International Airshow we have signed five agreements in cooperation with the Ministry of Transportation and Telecommunication, including the award for the main contractor with a value of USD 1.1 billion which includes the construction of the new passenger terminal building, the main services building and aircraft bay, awarded to a joint venture between Arabtec from the UAE and TAV Construction from Turkey; a contract with CIMC from China for the Passenger Air bridges; a contract for the Baggage Handling System with Vanderlande from the Netherlands; a contract with L3 Communications from the USA for Security Screening Equipment; and finally a contract with Kone from Finland for the Horizontal and Vertical Transfer Systems. A contract was also signed on the sidelines of BIAS with SETEC from France for the design of an MRO facility which, when built, will contribute to job creation for Bahrainis. The signings completed at BIAS 2016 are a historical milestone in the progress of the Airport Modernization Program and signify an important step in maintaining Bahrain’s strong position in the civil aviation sector.
There are several opportunities that we can capitalize on to help us achieve our goals. One is transforming BIA into the boutique airport that relies on creating a memorable experience that larger airports cannot provide. Another is to form strategic alliances that can give us leverage in terms of business intelligence. We also have the ability to engage prominent stakeholders and entities in the aviation industry such as the Economic Development Bank, Civil Aviation Authority, and others. We will continue investing in human capital, as it is an enabler of excellence in performance. And of course, our comprehensive masterplan for development presents us with opportunities that, if capitalized on in the right way, can strengthen BIA’s position as a major player and help elevate the regional aviation industry as a whole. In this way, we hope to play our part, just as the mega airports in region play theirs, in helping to create a Middle Eastern aviation sector that rises up to the occasion, meeting, and even exceeding, the aspirations of our governments and citizens.
One of the major challenges we face is ensuring that the AMP’s and Gulf Air’s visions and strategies are aligned. Our success is dependent on the success of our national carrier, so we are adamant on fine-tuning the process to find the right trajectory to fit both our goals. The new terminal will usher in a new era for us. It means that we will have to be increasingly innovative in our methods of securing future funding to maintain a project of such calibre. We will be examining all areas of possible improvement, looking to increase revenue through diversification, further operational efficiency, and optimized organizational structures. We will also initiate a number of projects that will help the airport become self-sustaining, such as a dedicated fuel farm, a Maintenance, Repair and Overhaul, (MRO) zone, and access to a General Aviation Terminal.
Networking and raising awareness about the industry. Reaching out to business professionals, politicians, media representatives, students and to the public.
Bahrain International Airport, offers distinct strategic advantages over other airports in the region. While it may not be as massive as the Dubai International Airport, for example, its homey atmosphere make traveling through it a uniquely pleasant experience. Passengers often complain of the long periods they have to spend crossing larger airports, which can sometimes even result in missed flights. That is not a problem with the BIA because its relatively small size means a journey from one end to another takes only a few minutes. The airport’s design is also straightforward, which means passengers will quickly find what they need and where they need to go. While the other airports will give them larger spaces, BIA gives them efficiency and peace of mind. It is also important to emphasize how well-connected the BIA is to the region, because it means that it has access to the large and growing markets of the GCC, which are estimated to be worth a combined total of $2 trillion by 2020. The Kingdom’s close proximity to Saudi Arabia, the Gulf’s largest market and the world’s largest oil producer, gives it an exceptional edge. Recent statistics show that more than 10 million passengers came from Saudi through BIA and King Fahd Causeway connecting the two countries, which means BIA’s services extend to Eastern Province of Saudi Arabia as well, a good example of how interconnected the region’s aviation industry is. This kind of access puts BIA in a unique position to expand operations and increase its customer base without bearing the costs of physical expansion. And finally, it is worth noting that BIA’s strength in the logistics industry positions Bahrain as a hub for global cargo networks such as DHL, as it gives it a broader appeal that goes beyond travel passengers. In addition, the planned (one-point stop) on both sides of the King Fahad Causway will ease the process of moving both passengers and cargo in and outside of Bahrain. Also, the new planned King Hamad Causway (est. 2023) will impact the overall cargo, logistics and supplychain sector in Bahrain. For example, it will impact the import and export costs in a positive way.
Interview with the Senior Vice President Saudi Arabia, Bahrain & Oman of Agility
Agility serves businesses across the region with its state-of-the-art warehousing, freight, transport and speciality logistics solutions. Our warehouse capabilities includes ambient, chilled, pharma grade and frozen storage, while offering clients full visibility to warehoused inventory and goods in transit with advanced tracking and exception management systems. In Bahrain, we operate a large fleet of over 200 transport assets including trucks and refrigerated trailers as a leading provider of cross border transportation and customs brokerage for a number of multinational organizations across the GCC.
One of the world’s leading providers of integrated logistics, Agility is a publicly traded company with more than $4.3 billion in revenue, employing more than 22,000 employees across 100 countries. Our core commercial business, Global Integrated Logistics (GIL), provides supply chain solutions to meet traditional and complex customer needs. GIL offers air, ocean and road freight forwarding, warehousing, distribution, and specialized services in project logistics, fairs and events, and chemicals. Agility’s Infrastructure group of companies manages industrial real estate and offers logistics-related services, including e-government customs optimization and consulting, waste management and recycling, aviation and ground-handling services, support to governments and ministries of defense, remote infrastructure and life support. Agility Bahrain has more than 245 employees with over $30 million in annual revenue. Besides being the largest custom broker on the island, Agility offers the complete range of freight & logistics services under one roof. We operate one of the largest state of the art 3PL logistics facility built on a 52,000 sqm site.
Agility has recently invested $10 million to expand the regional logistics hub in Bahrain to 28,000 sqm, increasing storage capacity by an additional 19,000 pallet positions and 10,000 sqm, growing the work-force by almost twenty-five per cent. To support this growth, we will be adding 25 new Mercedes Benz trucks to our transport fleet. The expansion will enhance our Bahrain-based regional logistics hub.
Across the region, logistics has a key role in driving economic growth and attracting international investment. Policies that directly contribute to the expansion of the logistics sector are being increasingly implemented to support growth in this direction. The expansion of our Bahrain logistics hub will increase the storage capacity and help meet the increasing regional demand for sophisticated and integrated logistics services. We are investing in both infrastructure, technology and human resources to achieve this.
The entire logistics industry is being challenged due to rising energy costs and seasonality of customer volumes. Customers are increasingly demanding turnarounds of large volumes at short notice, adding to cost pressures. The solution is to incorporate even more innovation, especially in terms of efficiency to our customers’ supply chains. By investing in technology solutions that enable us to tailor shipments to customers’ individual needs, we can increase efficiency and reliability without compromising on quality.
As an emerging market specialist and global logistics industry leader, Agility has developed a great track record in taking calculated business risks and making the right investments to build logistics capabilities in the region. The conference will provide a platform to share our experience, while engaging with other innovators in the business to jointly contribute to the development of Bahrain as a leading manufacturing and logistics hub in the region.
Agility’s investment in Bahrain is a reflection of the Kingdom’s growing role as a regional hub for logistics providers. Bahrain’s unique geographical location, combined with the ongoing liberalization of the logistics sector and availability of a well-educated local workforce are key drivers behind the growth of the logistics sector in the Kingdom. Bahrain is also less susceptible to fluctuations on the oil and gas market when compared to the rest of the GCC. The infrastructure and the regulatory aspects are also business-friendly, developing Bahrain into a key trading hub. The Kingdom is investing over US$32 billion in key infrastructure projects over the coming years. This includes the expansion of Bahrain International Airport, which is estimated to increase the air cargo volumes to one million metric tons per year once the project is completed in 2020. In addition, Hamad Causeway, the second causeway connecting Bahrain to Saudi Arabia, is expected to result in import costs being further reduced by up to fifty per cent. The Khalifa Bin Salman Port has also enhanced the country’s role as primary supplier to Saudi Arabia, the region’s largest market. Agility is committed to this market and our growing presence with our established clientèle here is proof to the viability of Bahrain as a logistics gateway to the GCC and region.
Interview with the Chief Executive Officer of First Bahrain
First Bahrain is a real estate development company that owns and operates projects in the Kingdom of Bahrain. Majaal Warehouse Company was established by First Bahrain to develop a leading position in the industrial facilities market for SME’s. Majaal now has over 570,000 square feet of facilities under management, generating a solid, reliable return for our stakeholders. Majaal’s industrial facilities are strategically located in Hidd adjacent to the new Khalifa Bin Salman Port. A short drive from the Bahrain International Airport, the site also offers easy access to Saudi Arabia, making the location ideal for SME’s focused on distribution to the Bahrain and Saudi markets. First Bahrain also own and operates the El Mercado mall in Janabiya. El Mercado is an open-air neighborhood market that has become a destination for families to shop, relax and dine. In addition, First Bahrain is in the process of developing a residential project adjacent to El Mercado mall consisting of 42 villas for sale.
First Bahrain’s assets total nearly BD44 million and the company holds rights to over 1 million square feet of lands located in the Kingdom of Bahrain. Total revenues are over BD2.2 million and the total staff count is nearly 20 staff based at offices in Bahrain and Kuwait.
First Bahrain’s most significant development in 2016 was the completion of El Mercado mall and the launch of the 42 villas development.
Majaal is looking to expand outside Bahrain and we are currently looking at options in Oman and the eastern province of Saudi Arabia. Additionally, First Bahrain is building the El Mercado Village, 42 villas for sale adjacent to the El Mercado mall. The residential project will be showcased at the Bahrain Property Show in April 2017.
The prevailing economic conditions over the last 2 years have been challenging with lower oil prices and the removal of subsidies and the preparation for the introduction of VAT. These factors have put pressure on an already weak economy and has tempered investment in the Kingdom.
As with last year, our hope is to highlight the important role that Majaal has played in supporting the SME sector in providing high quality, flexible and affordable industrial facilities. It is always a pleasure to meet and network with our peers and to share our experiences.
The Kingdom of Bahrain continues to provide the most liberal and well regulated environment to set up business wishing to cater to the Bahrain and eastern province of Saudi Arabia markets. Bahrain has an indigenous local work force and set up and operating costs are the most competitive in the GCC.