Fujairah's Logistics Aspirations

The first phase in Fujairah’s logistics park should be operational by the end of the year. The project is certainly ambitious, but can the emirate really compete with Dubai and Abu Dhabi to become a successful Middle East logistics hub?

  • E-Mail
By  Robeel Haq Published  April 4, 2006

|~|fujairahlogistics2.jpg|~||~|Companies offering warehousing facilities in the Middle East are truly benefiting from the region’s logistics boom. Whilst existing warehouses are reaching full capacity, the demand for newly constructed facilities is also peaking. At the moment, Dubai has successfully led the race in terms of attracting business and placing itself as the region’s ultimate logistics hub. Areas such as Jebel Ali are literally crammed with warehouses owned by leading international brands. Forthcoming projects such as Dubai Logistics City have only reinforced the city’s enviable position. However, Dubai is facing increasing competition from its neighbouring emirates for a piece of the action. Sheikh Hamed bin Zayed Al Nahyan, chairman, Abu Dhabi Economic and Planning Department (ADEPD) recently revealed plans to “transform Abu Dhabi into an industrial services and logistics hub, which aggressively pursues regional and global markets.” In addition, Fujairah has recently thrown its hat into the ring. The Fujairah Free Zone Authority (FFZA) is planning to create its own logistics park. The project will benefit from impressive transport links, such as the Fujairah-Dubai highway, plus the nearby airport and seaport. FFZA is also highlighting the lower costs of operating distribution centres in Fujairah, compared to Dubai and Abu Dhabi. This is bound to prove tempting for businesses from a variety of different industries. However, whilst low costs offer a tempting proposition, Fujairah’s logistics park must also compete in terms of quality service offerings, which is something FFZA’s director general Sharief Habib Al Awadhi has already acknowledged. Dubai Logistics City is already excelling by offering efficient services and support for its clients, which means Fujairah must match the high standards to win customers. Al Awadhi has already vowed to offer incentives such as user-friendly policies, simplified procedures, efficient licensing facilities and various investment options. Now, he must address concerns about a lack of unity amongst important stakeholders, such as the Port of Fujairah and Fujairah Airport, plus issues regarding a possible skills shortage of logistics professionals. Of course, teething problems always exist in large-scale projects and these are easily solvable by the free zone authority. Al Awadhi is undoubtedly a focused and determined businessman and the region can certainly accommodate another logistics hub. Lets hope Fujairah’s logistics park is yet another success story for the Middle East.||**||

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code