{"id":74585,"date":"2023-11-01T00:00:00","date_gmt":"2023-11-01T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2023\/11\/01\/how-are-mena-cold-chain-providers-adapting-to-the-demands-of-the-high-stakes-sector\/"},"modified":"2023-11-01T00:00:00","modified_gmt":"2023-11-01T00:00:00","slug":"how-are-mena-cold-chain-providers-adapting-to-the-demands-of-the-high-stakes-sector","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2023\/11\/01\/how-are-mena-cold-chain-providers-adapting-to-the-demands-of-the-high-stakes-sector\/","title":{"rendered":"How are MENA cold chain providers adapting to the demands of the high-stakes sector?"},"content":{"rendered":"

The MENA region\u2019s cold chain logistics landscape: <\/strong>Nestled at the crossroads of global trade, the MENA region has a pivotal role in the cold chain logistics sector, especially as the region experiences burgeoning demand in pharma products and perishables. Companies like Etihad Cargo<\/a>, Bahrain-based Al Madina Logistics Services (AMLS<\/a>) and Egypt-based El Sheikh Logistics<\/a> are investing in tech and quality control to ensure that product integrity is intact throughout the entire supply chain. <\/p>\n

Our region benefits from a strategic location\u2026: <\/strong>\u201cOur location in the Middle East enables us to reach about 70% of the world's population within a ten-hour flight,\u201d Global Cool Chain Solutions manager at Etihad Cargo Fabrice Panza told Enterprise Logistics. \u201cPositioned between Europe and Asia, we serve as a trade hub for products moving in both directions. This includes pharma products primarily flowing from Europe to Asia and perishables moving from Asia back to Europe via the Middle East,\u201d he explained.<\/p>\n

\u2026and growing demand:<\/strong> The cold chain logistics industry in Egypt is projected to experience a compound annual growth rate (CAGR) of over 5.5% between 2023 and 2028<\/a>, while the UAE, which has a more mature sector, is anticipated to achieve a CAGR surpassing 5%<\/a> over the same period, according to Mordor Intelligence data. \u201cIn the MENA region, demand for temperature-sensitive solutions, especially pharma products, has been consistently growing,\u201d Panza said. \u201cDemand in the pharma sector is experiencing annual growth of approximately 10-20% in the region,\u201d he explained. \u201cThe perishable goods industry, while comparatively more stable, is also expanding, with demand increasing by around 2-4%,\u201d he added. <\/p>\n

Who are the stakeholders in the region\u2019s cold chain network? <\/strong>Cold chain logistics involves a network of key players that each play a role in maintaining the integrity of temperature-sensitive commodities, including produce, meat, dairy, seafood, chemicals, pharma products, and flowers, according to Container XChange<\/a>. Producers, manufacturers, and packaging suppliers create and preserve these items, according to guidelines set by regulatory bodies. Freight forwarders coordinate transportation, working with air and ocean carriers for global movement, while trucking companies ensure continuity on the ground. This includes cold storage facilities, which provide controlled environments for temporary safekeeping, and monitoring and technology providers offering real-time tracking solutions. Distributors, retailers, and pharma companies complete the chain by delivering products to end-users. <\/p>\n

Some companies provide several services across the cold chain logistics chain: <\/strong>AMLS is the largest full chain, third party logistics company in Oman, with a scope covering all aspects related to inland operations. \u201cOur scope is everything to do with end-to-end logistics. Once goods arrive at the port of entry, we are responsible for clearing them, getting them inspected by the authorities, primary transportation, storage, and finally distribution to the end destination,\u201d Group COO at AMLS Nader Hakim told Enterprise Logistics. Some of the company\u2019s clients include McDonald's and BRF Foods<\/a>. <\/p>\n

Working with multinationals means undergoing comprehensive audits:<\/strong> \u201cMultinational companies like McDonald's and BRF perform audits and have very stringent standards,\u201d Hakim explained. \u201cWe have to comply with McDonald\u2019s Distributor Quality Management Process (DQMP). The audit covers products, systems, staff treatment, and more. It pushes us to improve as well because they keep updating these standards and then we maintain compliance,\u201d he added. <\/p>\n

In Oman, dry ports allow smooth customs inspections:<\/strong> \u201cDry ports play a vital role in one of Oman's main non-hydrocarbon exports, the fisheries sector,\u201d Hakim explained. \u201cThese dry ports act as inland ports, equipped with cold chain facilities for inspections and customs formalities. This setup ensures that containers are properly inspected by authorities, such as the Agriculture and Fisheries Ministry, in controlled temperature conditions before proceeding to the actual seaport, like the Port of Sohar,\u201d he added. <\/p>\n

Land transport requires real-time data loggers + close assessments:<\/strong> \u201cBefore each truck's departure, our engineers meticulously assess temperature levels,\u201d Ahmed El Sheikh, Egypt-based El Sheikh Logistics\u2019 managing director, explains. \u201cOur containers feature real-time temperature data loggers. In the event of any issues, our responsive team is dispatched within 24 hours, facilitated by GPS tracking,\u201d he said.<\/p>\n

Egypt\u2019s FX shortage has hindered fleet growth:<\/strong> \u201cWe source refrigerated containers and the majority of our trucks internationally. Unfortunately, our fleet expansion has been put on hold for two years due to ongoing import backlog and foreign exchange shortage,\u201d El Sheikh said. \u201cAs a result, our current priority is to maintain and manage our existing assets. We have a dedicated workshop for truck maintenance and a warehouse with spare parts for our fleet, which have become substantially more expensive,\u201d he added.<\/p>\n

When it comes to shipping: an innovative solution is gensets. <\/strong>Gensets are portable power supply sources that comprise an engine and generator and can be used where there\u2019s no access to a power grid. El Sheikh leases those gensets to freight forwarders to use for the transport of agricultural products, to maintain temperature control, El Sheikh told us. The gensets \u201csupply power to containers before they are loaded onto ships. Once the containers are connected to the ship's power source, the gensets are retrieved,\u201d El Sheikh told us. <\/p>\n

UP IN THE AIR- <\/strong><\/p>\n

A young, tech-advanced fleet is important: <\/strong>\u201cWe leverage the latest aircraft technology for temperature control during flight, and our fleet is notably young (under seven years) and sustainable,\u201d Panza told us. <\/p>\n

Etihad Cargo also offers customers the option to lease advanced cold chain technology containers<\/strong>: The containers are \u201cbeneficial for specific pharma products that require very stable temperatures from origin to destination,\u201d Panza explains. \u201cThis scenario applies to around 20% of pharma shipments. During such instances, the specialized containers are used, starting from the origin and extending to a distribution center \u2014 before acceptance, and until consigning \u2014 an end-to-end process facilitated by Etihad Cargo,\u201d he added.<\/p>\n

Challenges:<\/strong> Increased transparency and real-time tracking provided by technology have led to higher expectations, Fabrice explains. \u201cHowever, this also gives us an opportunity to showcase our reliability and commitment to meeting deadlines and maintaining product quality,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"

The MENA region\u2019s cold chain logistics landscape: Nestled at the crossroads of global trade, the MENA region has a pivotal role in the cold chain logistics sector, especially as the region experiences burgeoning demand in pharma products and perishables. Companies like Etihad Cargo, Bahrain-based Al Madina Logistics Services (AMLS) and Egypt-based El Sheikh Logistics are […]<\/p>\n","protected":false},"author":1,"featured_media":74586,"comment_status":"","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[302],"tags":[265,17,124,301,32],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-74585","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-big-read","tag-cold-chain","tag-enterprise-logistics","tag-supply-chains","tag-the-big-read","tag-trade","wpautop","entry"],"acf":{"mongo_id":"8ae684c9-4126-4cb5-a148-4a2ae4b98fae","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/8\/974.jpg","photo_position":"above","homepage_title":"","full_issue_title":"How are MENA cold chain providers adapting to the demands of the high-stakes sector?","related_issue":[74577],"teaser":"","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2023\/11\/.a52e5438-14eb-4da9-9e4f-11327378ab65.mp3"},"yoast_head":"\nHow are MENA cold chain providers adapting to the demands of the high-stakes sector? - Logistics<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/logistics\/2023\/11\/01\/how-are-mena-cold-chain-providers-adapting-to-the-demands-of-the-high-stakes-sector\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How are MENA cold chain providers adapting to the demands of the high-stakes sector?\" \/>\n<meta property=\"og:description\" content=\"The MENA region\u2019s cold chain logistics landscape: Nestled at the crossroads of global trade, the MENA region has a pivotal role in the cold chain logistics sector, especially as the region experiences burgeoning demand in pharma products and perishables. 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