Logistics in the region has become increasingly more complex and sophisticated, a senior figure in the industry has said.

Bill Hill, group vice-president of GAC Logistics, says the complexity and sophistication stem from large-scale capital investments in the upstream and downstream infrastructure projects that oil and gas revenues have precipitated.
At the same time, the multitude of multi-billion investments in construction for tourism, residential and energy-related plants have also precipitated the demands for project logistics, he adds
GAC Logistics, which has implemented complex projects and has had a long involvement in the international oil and gas sector, has been handling an increasing number of projects of late, such as Nahkeel’s Palm project in Dubai and Kuwait’s Aromatics Complex.
Hill explains that a key feature for the Palm Island project is the ‘sequencing process’ required to ensure the cargo arrives at the right time and in the right order to meet the requirements of contractors.
“The size and scale of each piece of such massive projects means that the logistics are a lot more complex than what people would normally associate with construction cargo,” he says.
In addition, a booming economy has led to a rapidly developing retail sector as purchasing power continues to increase. Consumption of everything from grocery to luxury goods has soared, and retail logistics is a sector which is directly benefiting from this development.
“Greater demands are placed on service providers in terms of handling, storage and transportation capabilities as well as capacity,” says Hill. “Customers are expecting us to raise the game with reduced transits, lower costs, better KPIs, improved quality systems and so on.”
Hill further points out that international retailers bringing their brands to the region expect everything to be handled the way it is done in other markets.
“The bar has been raised, and logistics companies not only need to have global operations but also very good local operations in individual gulf markets – not all companies can offer this.”
As Middle East consumers become more sophisticated, there is also a growing demand for leisure and entertainment, whether sport or music, as seen in the major sports events and concerts now being held in the region.
“This brings about requirement for a whole range of logistics services – which requires meticulous planning, specialised expertise and time-definite execution,” continues Hill. Over the years, GAC has established a track record of handling stage and sound equipment for entertainment shows held in the region. Last year, the company helped move the shows of Cirque du Soleil, Shakira, Pink and Mama Mia amongst others.”
Beyond the regional market, many Gulf states are setting higher ambitions of being a global logistics hub with heavy investment in multi-modal infrastructures, noted Hill.
“Logistics is now a critical element in the Gulf states’ diversification strategy to modernise and expand their economies through international trade. The regional logistics industry is one of the most dynamic emerging markets in the world today, developing into a key hub for the international exchange of goods. The logistics market in the six GCC states alone is estimated to be worth $12 billion annually.
“With the explosive growth in global commerce, the region is presented with unprecedented opportunities to leverage its strategic location. Equidistant from Europe and Asia on the east-west trading routes and between the former Soviet Union and Africa on the north-south axis and on the doorstep of the subcontinent, the Middle East is an important re-fuelling stop for freighters serving the Europe-Asia market as well as a trans-shipment point.”
Leading the pack is undoubtedly Dubai which aims to consolidate its pre-eminent position with Dubai Logistics City (DLC) which will be the world’s largest integrated multi-modal logistics platform in a single-bonded free zone environment. DLC is part of Dubai World Central (DWC) which will also house the new Dubai World Central International Airport (JXB), set to become the world’s largest airport with six parallel runways and a capacity of 120 million passengers per year.
Hill observes that as the Middle East plays a more important role as an international hub, it takes operators with global coverage and considerable resources to leverage this development to expand their global business.
The company’s flagship GAC Logistics Park in Jebel Ali Free Zone has undergone continual expansion over the past 15 years and is still the largest and most advanced logistics facility in the region spreading over 150,000 sq m and offering more than 125,000 pallet positions.
“We have reserved a plot of land at the DLC to augment our existing operations,” says Hill. “With enhanced capacity, we are well-positioned to serve the growing demands in terms of services and volume within the Gulf and across the broader region.”
GAC has also embarked on an extensive enhancement of its road transport capability across the Middle East, which builds on its position as the leading operator in the Gulf. This involves an expansion of GAC fleet in Dubai and other GCC countries as well as further integration with various fleets to boost its pan-Gulf network. 
GAC logistics is part of the Dubai-based GAC Group which also provides shipping, marine and marine-related services. The group’s 8,000 people are found in close to 300 offices worldwide and speak more than 100 languages.