Growth of regional logistics to intensify in 2020, say experts

DUBAI: The growth pace of the regional logistics industry is set to intensify in the year 2020 on the back of boosted UAE growth expectations.

The UAE is hosting the region’s first Expo, in 2020, a mega event which is poised to start in October and for which preparations are in full swing. The growth driven by the event alone can bring huge opportunities for the logistics sector.

“There is a lot of optimism on the growth of the UAE as a result of Expo 2020, whether it’s the general economy, the warehousing and logistics industry or the pace and adoption of the smart technology within the logistics space,” said Shailesh Dash, Chairman of Gulf Pinnacle Logistics, GPL.

“Expectations of 2020 for UAE are very high. Businesses are preparing for the increased demand on account of the 2020 mega event because of which logistics industry will be a sure beneficiary. The logistics industry will also continue to witness a rapid advancement in technology this year as more players are adopting artificial intelligence technologies which will help them build a more efficient and sophisticated business,” Dash pointed out.

“We are excited about the potential growth of the economy and how GPL which owns a portfolio of companies across warehousing, logistics, last-mile delivery and student transportation, will be one of the natural beneficiaries,” he added.

“For example, the last-mile delivery industry is expected to continue its growth trajectory fuelled by rapid growth in the e-commerce space. Century Express, one of GPL’s subsidiaries, has upgraded its technology infrastructure and set-up tie-ups with agents in Asia and the Middle East to better serve its domestic and international clients, entering 2020 with the right team and structure,” he added.

Najeeb Kabeer, Managing Director of Century Express, said, “We are optimistic about 2020, which can be a very important year for all of us and we are ready to handle growing volumes.”

Rodney Vegas, the General Manager of two other subsidiaries owned by GPL, namely, Abdul Mushen Shipping and So-Safe logistics, said, “We expect higher container movements in and through UAE. Expo 2020 will further embed UAE’s brand image as a global powerhouse and a strong business partner which is reliable and sustainable.”

“During the mega event, businesses around the world will showcase their capabilities. Relationships combined with the right technologies are the requisites for the success of logistics businesses in 2020,” Rodney added.

Gulf Pinnacle Transport, GPT, a student-bus transportation company, owned by GPL has a similar approach and intends to adopt the latest technologies to enhance student safety and utilisation of its buses through advanced technology in route planning.

Ganesh Sivaraman, Head of GPT, said, “Last year, GPT witnessed strong growth due to a combination of solid organic performance and operational enhancements. Increased GDP growth projections bring growth potential to the education industry which translates to further growth in the school transportation industry and we are very excited about this.”

Highlighting that the company is giving rigorous training to its drivers and bus attendants to maintain student safety, he said, “GPT is striving to increase its service quality by incorporating smarter technology and setting a higher benchmark for competitors in 2020.”