GAC addresses the gap

GAC embarks on US$5 million expansion of its flagship Jebel Ali distribution centre in Dubai to expand facilities by 10,000 square metres.

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By  Paul Barthram Published  November 4, 2003

Ten years on from its original expansion into the Middle East market, GAC the global shipping and logistic service provider has announced its US$5 million extension plan for its distribution centre at Jebel Ali Free Zone. This brings GAC's total investment on the building to more than US$30 million.

The enlarged facility will occupy a total of 60,000 square metres - more than seven times of GAC's original 8,000 square metres facility that the company opened in 1993.

The extension facility will house a container freight station, multi-purpose distribution centre, value-added services function, as well as office accommodation. Together, the fully fledged distribution centre will boost GAC's capability to offer end-to-end supply chain management solutions, which include sea / air / courier freight, consolidation, road transportation, warehousing, cross docking, retail distribution and value added services.

According to Bill Hill, vice president, of GAC's logistics division expansion has become an absolute necessity for the company, with the existing distribution centre running at optimal capacity and aiming to keep up with a surge in the number of blue-chip accounts.

"GAC is now full swing into our business expansion with the start of this facility extension project in Jebel Ali," says Bill Hill, GAC Group vice president, Logistics Division. "Over the last couple of years, we have observed a consistent growth in our customers' overall business, including increasing demand for more storage space, logistics solutions and value-added services. In fact, most of our major clients have increased their volume throughput by between 10-50% from a year ago."

The facility expansion project has been initiated as part of GAC's group business plan, Vision X - Global Reach, which sets the framework for extending the Group's global presence while integrating and diversifying its range of services, according to Dag Bore, GM of the company's logistics division, GAC Dubai. Moving forward, a number of strategic initiatives will be implemented. These include investing in human talent, introducing more specialised supply chain and value-added solutions.

"The enlarged facility will enable GAC to continue to position itself to serve the present and future logistics needs of our customers, and keep the company at the forefront of the logistics industry in the Middle East," says Bore.

The extension project is set to be completed by the third quarter of 2004.

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