A Quick Reality Check on Logistics Challenges & Changes Impacting the Gulf Cooperation Countries (GCC) Presented by: Dr Craig Voortman National Center of Excellence in Supply Chain & Logistics, Royal Commission Yanbu, Saudi Arabia
4 KEY PILLARS OF NATIONAL CENTER World World World World Class Class Class Class Consultancy Research Training Education & Outreach Consultancy Advisor Capacity Research Expertise : Logistics Training & *Internal: Development of *BS SCM YUC Male *RFID Technology in SC Skills Development Multi-Modal Logistics Hub (Transport/ Procurement) *SC Risk Management *15 International *External: Develop Supply *BS SCM YUC Female *Green Logistics & Waste Accredited Certificates Chain Assessment Tool for (Retail/ Procurement) *Saudi & New Silk Route *35 Specialist Certificates companies to improve *BS Industrial Eng/Log YIC *Arabic Journal of Logistics Improve Saudi capabilities processes quickly smartly (Production/ Manufacturing) *Logistics SC News MENA & knowledge & skills Empower Companies: Leave Educational Legacy: Center on Research Map: World Class Training: (1) Supply Chain Audit (1) BS Male World Class (1) Top Journal (1) 15 International Cert. (2) Topical Mini-Seminars (2) BS Female World Class (2) Top Topical Magazine (2) 35 Specialist Cert.
Quick 5 Point Sketch of Logistics in the GCC & the Globe 1. GCC Shifts Logistics Shifts, Smart Moves, Strategy 2. Old World Maritime Powers Make way for the New World Maritime Power(s) & New World Maritime Power Shifts From West to Eastern (New) World 3. New Silk Route Presents Opportunities for Middlemen/ Traders/ Shippers/ Logisticians in ME, Red Sea, NSE Africa 4. Global Trends and Current Realities
GCC Realities and Opportunities: (1) Labour Changes & New Tax Propositions (2) UAE Expo 2020 & $econd half of 2017 (3) Qatar FIFA 2022 & major project$ 2018 (4) Oman Shipping & Logistics Objective$ (5) Saudi 1 Trillion Riyal Released to Companies Vision 2030 & Move to Diver$ified Economy Realities include: Job Creation, Nationalisation & Skills Development Emeratis,Saudis,Omanis, Qataris & Local Talent Dev. Move from Oil-Based Economies to more Diversified Diversified Industries & New Skills Sets Educational Hubs, Financial Hubs, Tourism Hubs, MICE, Air Logistics Hubs, Sea Shipping Hubs, Talent Pool Hubs
New C-Pak Logistics Corridor Yanbu 6 th Global Supply Chain and Logistics Summit 2013 www.sclgsummit.org 6 th Global Supply Chain and Logistics Summit 2013 www.sclgsummit.org 15 May 2013 15 May 2013
Portuguese British Dutch Spanish Were Maritime Powers Going West to East; Now China is Maritime Power Going East to West Power Shift Old Days & Old World
Now 20-30 Years
New Silk Route: China & soon India will be Playing this Global Game: What of the ME?? Just do the logistics of the big boys
Asia currently represents 2/3 of global container trade Asian will soon be 4/5 of global container trade 66% towards 80%
In the Olden Days, the world’s top ports were in the Western World Now in the New & Future Days, the world’s top ports are all already in the Eastern World A subtle noticeable shift for him who has eyes to see & ears to hear.
Within 5 hours flying time from Hong Kong lives more than ½ world’s population
China & India Represent 40% of World Population World Population 20% China India World 60% 20%
China & India: Massive Economies of Scale 1. China almost 20% of worlds population (19% to be exact) 2. India almost 20% of the worlds population (18% to be exact) 3. Two nations that represent almost 40% of world’s population are the next two major superpowers (USA moves into 3 rd ) 4. World’s soon -to-be-biggest homogenous consumer market ever will emerge & domestic consumption ginormous 5. Significant opportunities if you know what the New Silk Route really is & how to capitalise on it: Massive new Road Network of cargo flows via the ME Massive Sea cargos moving towards Europe, Eastern & Southern Africa, on towards Brazil & Americas. New Rail & Pipeline Systems between East, ME & Europe. Massive global Airport Hubs emerge Dubai (Emirates), Abu Dhabi (Etihad), Qatar, Jeddah (Saudi), Addis (Ethiopian). Container ports will pop up all around Arabic Peninsula, in places like Yanbu - a new transhipment, oil & mineral hub
Global Trends & Current World Realities: (1) Flat world society……flat economic growth (2) CEOs have to suck money from stones (3) Cost containment & cost awareness will continue (4) Move from Tree Greens to Cash Greens (5) Financial Markets& Investments have wings can… (6) Volatility in market makes it hard to demand forecast (7) Adaptability & Agility Key (Smart Decoupling Points) (8) Sales down ↓Shipping down ↓Rates charged ↓Cut Costs Deal ↓Profits Down (9) Incremental Growth Just Like Old Days of Business (10) Normal Economic World for Next 18 months to Possibly even 5 plus Years before the Next Super Cycle
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