AED257-million Dubai Flower Centre (DFC) to further stimulate cargo sector growth

Mr. Ibrahim Ahli, Marketing Director at the Dubai Flower Centre, said:

"With the latest facilities and equipment DFC is unique in the world technologically while the quality of service is second to none. This will give a boost to the cargo sector in the region, especially for transshipment of perishable goods, from the Middle East, Asia and African regions."

"We have already received very positive responses from East African flower growers and exporters including from Kenya and Ethiopia as well as from consuming countries like Russia and Japan," Mr. Ahli added.

According to the International Air Transport Association (IATA), global air cargo traffic grew 5.7% in the first four months of 2006, with Middle East traffic leading in accelerating air freight growth. Freight traffic out of the Middle East surged 17.9% compared to the first four months of last year.

Leading this momentum is the Dubai International Airport which has witnessed a consistent 20% growth in cargo traffic and the DFC, located adjacent to the airport, could not have been better placed to serve the perishables cargo sector.

The recently commissioned DFC has already handled 5,623 tonnes of perishables - flowers, fruit and vegetables - in the first month of operations. The centre has the capacity to handle 180,000 tonnes annually.

With the commissioning of the DFC, international companies are increasingly looking at the Dubai facility in order to take advantage of the potential growth in cargo sector. The centre is already nearing capacity as far as warehouse and office-space are concerned.

"We have already allocated 73% of the offices and 62% of the warehouses at the moment and there is a waiting list of companies who want to have an office and warehouse. But we would like to have a good mix of international major players with different strategies, products, sizes and from different part of the world," said Mr. Ibrahim Ahli.

The DFC is a one-stop shop for local and international buyers, traders and exporters as key players in the perishables marketplace are located in the main building, each providing a wide variety of value-added services and products.

Other advantages that make the DFC suitable to meet the requirements of the cargo sector include i) On-site logistics service providers, quality control facilities and customs inspection; ii) Immediate connections to local markets in the GCC region iii) Excellent international connections through air, land and sea, and iv) Direct access to international traders and customers.

The arrival of the product and onward shipment within GCC countries are virtually instantaneous as immediately after payment of the standard 5% duty and customs clearance, products are shipped directly to any GCC country without additional custom duty or taxes. "In fact operating in a free zone, the DFC offers incomparable advantages to international operators, " Mr. Ahli said.

"All these will result in DFC significantly contributing to the growth of cargo sector in the region," pointed out Mr. Ahli. "Additionally, the transshipment facility is ideally located to service maturing and emerging economies and provide the necessary core infrastructure facilities to develop trade routes," he concluded.