A.P. Moller – Maersk Signs Agreement with Dubai South to Expand Footprint in UAE

A.P. Moller – Maersk Signs Agreement with Dubai South to Expand Footprint in UAE

Maersk Kanoo UAE, the global integrated logistics company, recently signed an agreement with Dubai South, the largest single-urban master development focusing on aviation, logistics, and real estate, for its new warehousing and distribution (W&D) facility in Dubai. The agreement was signed by Mr Christopher Cook, the Managing Director of Maersk UAE and Mr Mohsen Ahmad, the CEO of the Logistics District at Dubai South, the regional headquarters of Maersk West & Central Asia in Dubai.

With its second warehousing & distribution (W&D) facility spread over 15,000 sqm at Dubai South, Maersk is strengthening its W&D offerings for retail and lifestyle, food and beauty, and eCommerce segments in UAE. Maersk Integrated Logistics Centre DWC facility in the Dubai South Logistics District will have a capacity to cater to 15,000 pallet positions and 10,000 bin locations while also serving as a fulfilment center. Dubai South was launched as a Dubai Government project in 2006, representing an emerging 145-square-kilometer, master-planned city based on the happiness of the individual. The city is identified as Dubai’s flagship urban project and is designed to create 500,000 jobs in an integrated, economic environment that supports all types of businesses and industries.

“At Maersk, we are in constant dialogue with our customers to understand their logistics requirements and supply chain pain points. Our customers have appreciated the single-window access to all their logistics requirements through our integrated solutions. Upon carefully studying different possibilities, we zeroed in on Dubai South for our new fulfilment center considering its strategic location connected to Al Maktoum International Airport (DWC) and the mainline port, and hub of Jabal Ali. This will allow us to further build on our air-sea hub operation, which has become increasingly important while also satisfying the right balance between speed and cost with tremendous flexibility,” Mr Cook, Managing Director of Maersk UAE.

Traditionally, ocean shipping, inbound logistics, and distribution have been shared among multiple stakeholders in the Middle East, resulting in complex logistical requirements. To create a seamless experience and integrated logistics solution for its customers, Maersk has strategically invested in W&D facilities, which will provide ocean and landside transportation. Following the launch of the first W&D facility in Dubai at JAFZA earlier this year in March, Maersk will more than double its total footprint in the UAE with the new fulfilment center.

“We are pleased to sign this agreement with Maersk, which will help expand its footprint across the UAE. Our mandate at Dubai South is to attract top international players to the Logistics District with the aim of boosting the logistics sector and diversifying the Emirate’s economy in line with the various government initiatives and strategies. In reinforcing Dubai’s status as global trade and air-freight logistics hub, we will spare no effort to offer Maersk optimal solutions to further advance its air cargo operations as well as support them in their growth journey,” said Mr Ahmad, CEO of the Logistics District at Dubai South.

The Maersk Integrated Logistics Centre DWC at Dubai South will become operational in later September. The new facility will allow Maersk to operate a hybrid model of a bonded and non-bonded warehouse to truly fulfill different customer needs, including that of a fulfilment center for end-to-end e-commerce solutions. The facility will also play a vital role in supporting Maersk’s existing services, including ocean shipping, landside transportation, customs clearance, etc. Customers capitalizing on the integrated solutions from Maersk will benefit from reduced handovers of their cargo through its journey, leading to potentially faster turnaround times, higher visibility, better control, and more predictability of their supply chains.

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