NTDE raises capacity with US$3.4m Dubai hub
Distributor NTDE plans to increase its distribution across the UAE and move into third party logistics.
National Trading and Developing Establishment (NTDE), one of the UAE’s biggest distributors of branded food goods, has invested some AED12.5 million (US $3.4 million) in a new warehouse, increasing its storage capacity by more than 50%.
NTDE, which distributes more than 6000 products in the UAE including Cadbury’s Dairy Milk and Orangina, decided to make the investment after taking on new agencies and experiencing a general increase in demand.
“We’ve taken on some new agencies recently, like Al Rabie soft drinks from KSA,” Adel Alsmadi, logistics manager, NTDE, told Retail News Middle East. “It’s [fresh juice] a very good agency but it requires a lot of storage capacity. The ball-game in distribution is having enough capacity for storage and then having the right people to do the business in terms of distribution. That’s what we really worked on in the past few years.”
The new 40,000² ft warehouse is located in the Al Rumool industrial area, between Dubai International Airport and Dubai Festival City. The warehouse has a height capacity of seven pallets, overall storage space for 350 containers, and is operated by two forklifts trucks.
The development is likely to be welcomed by regional and international food and drink producers who are increasingly looking for distributors capable of storing their products in line with the demands of the big supermarket groups.
“Another reason for this growth was the focus on developing an infrastructure that supports the retail sector,” Alsmadi said. “Having a state-of-the-art facility will attract more people to you. We have a lot of companies who came to look at the premises and news spreads around very fast.”
NTDE also plans to build two more warehouses with a similar capacity to the Al Rumool building. One of these proposed warehouses will be in NTDE’s Rashidiya premises and the second one will be in Jebel Ali Free Free Zone.
These developments also form part of NTDE’s plan to move into the third-party logistics sector, whereby it will store and distribute products on behalf of its clients.
The total space of NTDE warehouses in Rashidiya is 365,000 sq ft. NTDE also has warehouses with a total capacity of 125,000 ² ft in areas including Jebel Ali and Hamriya.