DC Velocity - October 2010

strategicinsight GLOBAL LOGISTICS - EMEA

But Gonzalez believes that is changing. “Pan-regional service providers offering end-to-end logistics services are starting to emerge, which will further accelerate the growth of the logistics outsourcing industry in MENA,” he wrote in his study.

One example is Wared Logistics, which offers import, transportation, distribution, and logistics management services in MENA and operates transportation hubs, warehouses, and DCs in Saudi Arabia, Egypt, Syria, Lebanon, and the UAE. Another is Damco, a $2 billion company that is part of the A.P. Moller - Maersk Group. Damco, which has operations in every country in the Middle East, offers an array of services in the region, including customs clearance, storage, deconsolidation, and distribution.

The right stuff

With the outsourcing market in a state of transition, Gonzalez
advises shippers to proceed with caution when choosing a
3PL in the MENA region. As for what attributes they should
look for in a potential partner, Gonzalez puts local expertise at
the top of the list. Because each country has its own unique set
of rules and requirements, he says, it’s important to make sure
the provider is up to speed on local laws regarding such things
as land ownership, operating authority, and labor practices
(including regulations governing hiring, training, and reten-
tion) as well as customs regulations.

Knowledge is power

All this might sound daunting, but experts say the challenges should not dissuade companies from setting up shop in the Middle East and North Africa. Wade Thompson, chief commercial officer for Damco in Dubai and an 11- year veteran of the region, disputes the idea that doing business in the MENA market is difficult.

“It is a very common myth that the Middle East is difficult to deal with,” he says. “I think with knowledge, it is an easy place to do business. Once you know the process, it is very smooth and efficient to manage.” ;

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