Kuehne+Nagel breaks ground on center in Dubai

Kuehne+Nagel has broken ground on a fulfillment and distribution center in EZDubai, a dedicated e-commerce zone in Dubai South’s Logistics District. [caption id="attachment_57143952" align="alignright" width="300"] Breaking ground on Kuehne+Nagel’s fulfillment and distribution center in Dubai are, from left, Mohammed Kandar AlAhmed, senior vice president of project management at Aldar Properties; Cem Gunfer, head of asset class diversification for investments and partnerships at Aldar Properties; Mohsen Ahmad, chief executive of the Dubai South Logistics District; Lee I’Ons, GCC+ cluster managing director at Kuehne+Nagel; and Henrique Guilardi, Middle East contract logistics manager at Kuehne+Nagel. (Courtesy/Kuehne+Nagel)[/caption] The center is adjacent to Al Maktoum International Airport (DWC), also known as Dubai World Central, and 12 kilometers from Jebel Ali Port, connected via a bonded logistics corridor, according to a June release from the freight forwarder. The center, developed by Dubai South and Aldar Properties, will offer 23,000 square meters of warehouse space, allowing for 45,000 pallet positions. It was designed under LEED silver requirements and is expected to be fully operational in second-quarter 2025, according to the release. Ground was broken last month. Kuehne+Nagel (K+N) declined to disclose the facility’s cost to Air Cargo Next . “The company provides customs clearance services and handled over 230,000 tonnes of goods cleared [in the United Arab Emirates] in 2023 for customers seeking an uninterrupted flow of goods,” Lee I’Ons , GCC+ cluster managing director at K+N, told Air Cargo Next . The GCC, or Gulf Cooperation Council, includes Saudi Arabia, Kuwait, the UAE, Qatar, Bahrain and Oman. In 2023 in the UAE, according to I’Ons, K+N handled about: 30,000 tonnes of airfreight; 60,000 twenty-foot equivalent units and more than 25,000 cubic meters of less-than-container-load sea freight; and 6,833 road freight shipments. K+N ranks first on Air Cargo Next ’s Power 25 list of top freight forwarders, moving 2.2 million tonnes of air cargo in 2022. E-commerce growth “The last decade brought a significant change in customers’ shopping habits,” I’Ons said. “Access to the internet, ease of e-payments and new trends such as the merger of e-commerce with social media, led the transformation. Emerging platforms, often spanning across GCC and [the Middle East and North Africa] regions, provide shopping convenience, competitive pricing and quick delivery.” [caption id="attachment_57143953" align="alignright" width="300"] Pictured is a rendering of Kuehne+Nagel’s new fulfillment and distribution center in Dubai. (Courtesy/Kuehne+Nagel)[/caption] The “tech-savvy” Middle East is quickly developing its e-commerce markets , according to I’Ons, specifically in the UAE, Saudi Arabia and Egypt. “The UAE in particular has emerged as a key e-commerce hub, bolstered by numerous governmental initiatives and free zones,” he said. “The e-commerce industry in the region continues to grow at double-digit rates and is expected to skyrocket.” I’Ons noted that 44.8% of revenue from the consumer electronics market in 2023 was generated through online sales. Similarly, more than 40% of fashion goods were purchased online in 2023, and that number is expected to grow to nearly 50% by 2025. “Kuehne+Nagel’s e-commerce and fulfillment center is designed to support the growing demand from our customers to provide state-of-the-art e-commerce fulfillment solutions,” I'Ons said. “Our technologies are not one-size-fits-all,” he said. “Depending on the unique profile of our customers and their products, we adapt our technologies and solutions to ensure maximum handling efficiency.” Free zone benefits The center’s placement within EZDubai allows K+N to offer its customers many benefits, according to I’Ons, such as: Exemption or reduction of selected fees; Paperless digital transactions; Automated bills of entry; and Security gate passes. “These features are designed to provide a seamless e-commerce operation and significantly enhance the efficiency of the supply chain,” I’Ons said. “Thanks to the connection to the mainland and free zone, Kuehne+Nagel’s customers can easily manage their inventory ... in a single facility within a free zone. “The items designated for the UAE will be customs-cleared and released to the mainland in Dubai,” he said. “Items designated for other countries will remain within the free zone and transported to either [the seaport or airport] and prepared for the onward journey, without additional customs clearance procedures.”

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