Fifty companies opt to build their own facilities at Dubai Logistics City

Dubai Logistics City (DLC) the first phase of the 140 square kilometre Jebel Ali Airport City aviation community, and a key plank in the creation of the world's first integrated logistics and multi-modal transport platform.

"Covering more than 2 million square metres of DLC land, these companies have started to design and plan their facilities, perfectly reflecting the diversity of the logistics business," said HH Sheikh Ahmed bin Saeed Al Maktoum, President, Department of Civil Aviation, Government of Dubai and Chairman of the Emirates Group.

"DLC tenants represent a balanced mix of regional versus global players, large versus medium-sized companies, organisations focussing on cargo handling versus a warehousing or distribution focus."

Kuehne +Nagel says it intends to use DLC as a base for further expansion in the Middle East and India.

"Precisely for the contract logistics business, DLC provides us with exactly what we need," said Dirk Reich, a member of the board of management of Kuehne + Nagel International AG (Schindellegi, Switzerland). "Here we are focusing on sectors that occupy an important position for us, such as high-tech, pharmaceutical, retail and consumer goods, automotive and aviation, industrial and chemicals together with the associated supply chain management."

Kuehne + Nagel's DLC distribution centre, which is currently in the planning phase, will be progressively expanded to cover more than 50,000 square metres and will complement the company's existing facilities in Jebel Ali Free Zone and the Dubai Air Cargo Village.

Reich is convinced that in Dubai, the trend to outsource logistics will continue.

"We expect that in particular, customers who already receive comprehensive logistics support from us in other regions of the world will want to expand their business in partnership with us. In such a rapidly growing region, it is important for our customers that they can concentrate on the development of the market and have a dependable partner for logistics. With the construction of Dubai Logistics City, our presence in the emirate will gain further importance," he said.

Companies wanting to build their own facilities are to be given access to their sites in the second quarter of this year.

"The response has been tremendous and DLC's business proposition has resonated not just locally and regionally but internationally," said Michael Proffitt, CEO, DLC.

"Dubai's case as a global logistics hub makes even more sense when considering the demographics for the greater Middle East region, which spans Africa, the southern CIS and sub-continent, for the next 30 years. These suggest that within those three decades another billion consumers will be added to the existing two billion profile and this will ensure economic growth for many years to come."

Spread over 25 square kilometres, DLC will begin operating at the end of 2007. It will be adjacent to the new Jebel Ali International Airport (JXB) and is designed to eventually handle more than 12 million tons of air cargo annually in up to 16 air cargo terminals.

The wider Jebel Ali Airport City, which will be the size of London's Heathrow and Chicago's O'Hare airports combined, will operate as an independent free zone and will accommodate up to 750,000 residents and workers.