Single customs for DLC-Jafz cargo

Cargo being shifted to Dubai Logistics City (DLC) from the Jebel Ali Free Zone (Jafz) and meant for re-export can go through a single customs union.

Negotiations are also going on with regulatory authorities and service providers to introduce more features that would enable operators to set up base in the DLC, said Michael Canon, Chief Commercial Officer, Dubai World Central.

Speaking to Emirates Business yesterday, Canon said that an agreement has been reached with the customs official, making it easier for clients to shift goods to the warehouses in the Logistics City.

Industry officials had earlier expressed concern about the collection of customs duty for cargo meant for re-export while being shifted to the Dubai Logistics City.

"Negotiations are over and it has been resolved. We now have two free zones – Jebel Ali Free Zone and the Dubai Logistics City Free Zone under one customs zone. When a container comes on a ship to Jebel Ali port and if the importer is based in Jebel Ali Free Zone, but wants the goods stored in Dubai Logistics City, he can just make one data entry and the goods will be automatically transferred," said Canon. According to DP World, cargo can be transferred to DLC within 40 minutes after the container hits the deck in the Jebel Ali Port.

Commenting on other issues that are being addressed, Canon said: "There are a lot of stake holders with whom we are working together. Some of them are regulatory in nature while the others are service providers such as the RTA and the Export Development Council in Dubai.

"We are in the process of developing a concept called Door Terminal Door. We are working with the Ministry of Health for the pharmaceutical companies to get approvals for operations here. We are also working with the DP World security to make sure that the security questions concerning the movement of goods between the port and DLC is in place," he said.

A separate certification of the security issues, with regard to the entire facility, including the bridge that connects Jebel Ali and Dubai logistics city was completed.

According to Canon, Dubai will continue to grow as a logistics hub in the region. "We have a lot of opportunities here. Most of the 3PL companies operating here have customers in China, who manufacture goods and bring them to Dubai for distribution in the Middle East. Whereas the cargo that goes on to Europe continues around Africa and goes up for another 14 days to Rotterdam.

"With the super slow steaming that is occurring with the shipping lines, coupled with the cost and the variability in the process and the delays in the delivery in Rotterdam are forcing companies to look at using Dubai as a transit point where they can do the assembly and packaging and then ship it directly to Europe. So the cargo, instead of going to Rotterdam and its distribution centres for distribution around Europe, would go from Dubai to the final distribution city for distribution to the final customer," said Canon.

The opportunity for this is huge, he said. "The demand is growing and many brand owners say the total supply chain cost is less when operation are shifted to Dubai as opposed to taking it through sea freight across to Europe."

Hellman calipar announces healthcare logistics facility at DWC

Hellman Calipar Healthcare Logistics yesterday announced the launch of its healthcare logistics facility based at Dubai World Central.

Hellman Calipar is a strategic joint venture between Hellman Worldwide Logistics of Germany and Calipar Integrated Logistics of India. "Logistics is regarded as a crucial part of the pharmaceutical industry since the activities are highly time-sensitive. In addition, pharma products need temperature-controlled storage and distribution," said a company statement.

"The industry has given importance to logistics by focusing on supply chain and logistics level activities, such as delivering the product to the end-customer at the right time, right place, in a secure mode and at a competitive operational cost. Therefore, the establishment of Hellmann Calipar at DWC is an ideal option for the company," the statement said.

Jost Hellman, Co-owner, Hellman Calipar, said: "Healthcare logistics needs to be supported by a highly efficient logistics environment.

"Due to this unique characteristic, there are very few logistics hubs that can fully serve the requirements of healthcare logistics, and we are glad to have found the ideal home in Dubai World Central."

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