Dubai Logistics City secures four industry heavyweights

The contracts were signed between His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman, Dubai Aviation Corporation - Dubai World Central with leading express operator Aramex, global forwarding and logistics provider Danzas, logistics service providers Kuehne+Nagel and Panalpina.

"These signings demonstrate the power of the Dubai Logistics City business proposition and that of Dubai as a world-class hub,"

said Sheikh Ahmed. "These are the first of what will be a partner portfolio that will evolve into a virtual 'who's who' of the industry."

Over 85 regional and international companies have reserved in excess of over 2.5 million square metres of land within DLC. "By 2008 we expect over 6 million square metres of land to be leased," added Sheikh Ahmed.

Phase one grading of DLC is now complete with contracted partners now able to move on-site and begin construction of their own facilities.

"Logistics is a dynamic industry and Dubai, in its unique position of being an ideal east-west hub, is able to offer unsurpassed geographical logistical advantages," said Michael Proffitt, CEO, DLC.

Aramex has signed for 140,000 square metres in DLC's contract logistics area with an option for an additional 100,000 square metres.

"Innovation is in ARAMEX's DNA, so it was easy for us to take the initiative on a project of such immense significance," said Fadi Ghandour, President and CEO of ARAMEX.

"We took a strategic decision almost 22 years ago to make Dubai the hub of our global operations. We are, therefore, well positioned to capitalize on our presence in DLC, which has an important role to play in Aramex's Logistics service offerings, especially our third party logistics."

"Aramex will always take the lead in investing in pioneering infrastructure projects such as DLC, and this agreement is a clear signal to our existing and potential customers that we are committed to offering cost-effective, cutting edge express and logistics solutions they can depend on in a highly competitive global marketplace."

Danzas AEI Emirates LLC has signed two agreements. The first is for 30,000 square metres in DLC's forwarding area with an option for a further 15,000 square metres. It has also secured an additional 155,000 square metres in the DLC's specialised contract logistics area.

"DLC and Dubai will become the centre of the Danzas' regional operations," explained Enver Moretti, CEO/President EMA, DHL Global Forwarding, of which Danzas is now a part. "For the past 17 years, Dubai has been our freight exchange hub for the Middle East and our DLC operation will allow us to vigorously pursue our aim of becoming a staging point and not a warehouse.

"We have come to a stage where we say Danzas in Dubai is where the world meets because it is here where everything comes in from all over the world and we serve it to a vast geographical outreach - Africa, South Asia and the GCC - and the footprint keeps on expanding as the emirate continues to be identified as a major hub.

"The DLC operation will add value to our customers throughout the Middle East and beyond and cement our reputation of being a one-source responsibility for the diverse transportation and logistics needs of a continually expanding customer base."

Kuehne + Nagel has signed for 52,000 square metres in DLC's contract logistics area, citing the facility as enabling the global company to deliver and continually strengthen its hallmark operational excellence and high customer service levels across the Gulf and the greater Middle East region.

"Our investment in DLC confirms that we recognise Dubai as the gateway to and from the Middle East. At this strategic hub - adding to our established global facilities - we will be able to provide our customers with sophisticated, integrated logistics solutions across the Middle East as well as Sub Asia and Africa, thereby further enhancing our already strong market position in the region," said Werner Kleymann, Regional Manager Middle East, Kuehne + Nagel.

Panalpina has taken 30,000 square metres in DLC's forwarding area and has an option of another 15,000 square metres. The company plans to build its own, state-of-the-art 10,000 square metre warehouse and 2,600 square metre office building and have space for future expansion.

"This is crucial as the facility will function as a transit-warehouse for the area," explained René Marcel Wernli, Director and Secretary of Panalpina World Transport (Dubai) DWC-LLC and Managing Director Middle East.

"Dubai serves as one of the world's major centres of sea-air interchange and is the pivot for cargo movements in the region. All major markets in the Middle East are within 24 hours driving and all major ports in the area are within 48 hours steaming distance.

"The new terminal will - among other features - include air-conditioned, temperature-controlled facilities and dedicated space for both ocean-and-air freight cargo," added Wernli. "We will be able to provide the entire range of value-added supply chain management services to our customers. The facility will be directly connected to the new airport and seaport. Construction is due to start at the end of this year and should be complete within 12 months."

Grading of Phase Two of Dubai World Central - which will boast the world's largest airport, Dubai World Central International (JXB), and of which DLC is a key component - is now underway. With the completion of Phase One grading, DLC is readying to commence construction of its state-of-the-art headquarters and its dedicated office park which will comprise 18, four-storey tower blocks with lease facilities.

DLC, together with Jebel Ali Port and Free Zone and JXB, offers a unique proposition combining all transportation modes, logistics and value-added services, such as product manufacturing and assembly, in a single-bonded free zone environment.