Logistics City will help boost traffic passing through Dubai
Captain Mansoor YA Ghafoor, Chairman of Dubai-based National Association of Freight and Logistics (NAFL), is a concerned man today. Twelve years earlier he and his colleagues introduced marine and navigation training courses at NAFL. The idea was to train local graduates to enter merchant navies. The course has done well and hundreds of candidates have been trained so far; however, the prime purpose of setting up the institute has not been met. Local graduates comprise just two per cent of all the qualified manpower in the logistics sector of the UAE, which, Ghafoor says, is a nagging problem.
What are your responsibilities at NAFL?
We act as an umbrella organisation for logistics companies in Dubai and our main aim is to upgrade and raise the standard of professionalism in Dubai. We maintain contacts with similar freight/logistics associations across the world. Several years earlier we formed a training institute that offers modular vocational training programmes. It provides certification that is valued across the world. It is also recognised by Fiata.
What courses do you offer and where do you get your students from?
We have both expatriate and national students. We offer a NAFL/Fiata diploma course, which covers various modules such as 'introduction to freight forwarding', and 'dangerous goods' among others. The percentage of Emiratis is minimal – two per cent. We want this to increase. There are many youngsters who can benefit from this training programme.
What is preventing them from joining the logistics profession?
There is probably a lack of awareness. Youngsters are not aware of the virtues of the profession. I consider logistics a strategic profession that will help not only the student but also the country.
What is the future of Dubai as a centre of trans-shipment and logistics?
Dubai has worked on successfully establishing itself as a centre of trans-continental trade. The government has invested in concepts such as Dubai Logistics City (DLC), which when complete will substantially improve the traffic passing through Dubai.
You are a member of the DLC advisory committee. When will the project be completed?
Work is progressing on DLC. However, I cannot give an exact date when it will be complete. It's a huge project, it'll take shape in stages. DLC will be connected to the seaport as well as the airport. The freight volumes passing through Dubai will increase to 12 million tonnes once DLC is complete. Now the Dubai airport handles 1.5 million tonnes a year and we will be able to achieve such a volume in month. As of now, a lot of countries depend on Dubai for their supplies.
What are the factors driving the logistics trade through Dubai?
It's being driven by the geographical location and the facilities that the emirate provides. We have been handling large volumes of exports from China. There is a trend to bring exports from China and other countries to Dubai by sea and then re-export from here. That would involve transporting to Dubai by sea and then airlifting from here for destinations in Europe/US and others. This is called sea-air cargo. Dubai is a pioneer in this concept. Textile exporters in Bangladesh and India are using the same method to enhance their exports. In fact, such a trade is being carried out in both directions. Shipping is probably the cheapest way of transporting cargo with the freight being charged on the basis of total tonnage. In air transport freight is charged per kilogramme. A combination of the two, therefore, minimises cost with the cargo being delivered quicker.
What can be done to further boost Dubai's shipping sector?
I call for setting up an international shipping registry in Dubai. It would register only the best of vessels from around the world. This was under discussion earlier. With Dubai being in the centre of a global shipping route and a high number of shipping companies having their offices here, Dubai should have a shipping line of its own; may be not now but in the future. Dubai has a global air carrier like Emirates, it can have a global shipping line, too.
What has been the impact of the slowdown on the freight volumes?
Freight volumes passing through Dubai (imported and then re-exported) have risen by 20 per cent since January this year. Freight rates have increased by 15 per cent in the same period. It was in the second half of this year that the volumes began to rise.
It is said that a lot of shipping capacity is lying idle? When do you see the conditions improving?
It's true that the sector has suffered. It will take time. We will see something better early next year as far as shipping volumes are concerned. And, 2011 is when freight rates will stabilise.
PROFILE: Captain Mansoor YA Ghafoor Chairman of National Association of Freight and Logistics
Ghafoor is a qualified Master Mariner. He hails from a shipping background and has spent over a decade at sea on various types of vessels. Since 1985, he has been on various shipping, freight forwarding and logistics committees. He is a member of the first Board of NAFL Dubai and is currently its president. He is the Vice-President of International Federation of Freight Forwarders Associations (Fiata) since 2005 and the Chairman of Region Africa Middle East within Fiata. He holds a diploma in freight forwarding competency awarded by Fiata Zurich.
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