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Dubai as a logistics center

The 21st century is marked by the rapid development of logistics in Asia. For Japan, which is well known for its achievements in the field of production logistics, in particular logistical systems Kanban and Kaizen, joined the so-called. "Asian dragons" (Republic of Korea, Taiwan, Singapore, Hong Kong), as well as the largest country in the world - China and India where rapidly create modern transport and logistics infrastructure. In recent years, large-scale logistics projects implemented in the countries of South-West Asia, particularly in the Gulf states, which occupy very advantageous transport-logistic and transit location. This primarily refers to the United Arab Emirates, which includes Dubai. It is here now under construction in the world's largest airport, and is formed on its basis is one of the largest and most modern international logistics centers - Dubai Logistics City. Dubai as part of the UAE. Among the seven emirates that form the United Arab Emirates (UAE), Dubai belongs to the second place both in area and in the value of GDP. Historically, the development of Dubai passable slowly, but accelerated significantly during the second half of the twentieth century. In 1967, the deep-water port here for 35 berths has been constructed. Later, to the south of the city it was built a second port, which nowadays has become one of the largest container ports in the world. In 2004, the turnover of the two Dubai ports was 6.42 million. * TEU. With the discovery in 1966 of oil deposits began the rapid development of infrastructure, but Dubai's leaders realized that the oil - it's not forever, once its deposits are exhausted. Therefore, in order to diversify the emirate's economy and reduce its dependence on oil, Dubai has begun the development of trade and tourism. As a result, in 2005 only 12% of Dubai's GDP accounted for by oil, and this proportion in recent years continues to decline. Throughout the 1990s, Dubai has established itself as an elite tourist destination, which is characterized by an international atmosphere of relaxation. Foreign tourists prefer Dubai due to the fact that the religious requirements of Islam are treated fairly liberal and English spoken. With the development of tourism related development and construction of major facilities. Last Known building a world-class project - "Burj Dubai" ( "Dubai Tower"), which will become the tallest building in the world. It was built on an artificial island near the famous hotel "Burj Al Arab" ( "Arabian Tower"). Another world-famous project - "Dubai Palm Island" - an artificially constructed island in the shape of palm tree branches that are so ambitious that they can be seen from space. The islands are located hotels, villas and apartments. Today, tourism, together with the conferences provide about 5% of the GDP of Dubai.

Dubai is also developing the processing industry, trade, transport and distribution In addition to oil and tourism. In recent years, Dubai has become a major trade and distribyutorsky center, which serves about 2 million. Buyers worldwide. Its ports, airports, road and highway, as well as free economic zones (including the "Jebel Ali", "Dubai Internet City", "Dubai Media City") have very favorable conditions for investors, who can create here the enterprise with 100% foreign capital. Moreover, such enterprises are fully exempted from tax for the next 15 years. These conditions contribute to an increase in international trade flows, which in recent years has more than doubled compared with 1999. Given the above, it becomes clear why Dubai is known as "Arabian Switzerland". This title also displays a neutral political status of Dubai and its stabilizing role in the Gulf region. As in other emirates of the Persian Gulf, the government of Dubai owns certain members of the family. Dubai is Al-Maktoum family who has absolute power and all the most important government posts. Politics Ruler of Dubai as a whole has the support of the people, as provided a long period of prosperity of the country. The official representative of the ruling family - Sheikh Maktoum Bin Rashid Al Maktoum, the eldest son of Sheikh Rashid Bin Saeed Al Maktoum, who started the modernization of Dubai in the 1970's. After the latter's death in 1990, Sheikh Maktoum took over as head of the highest in Dubai. In 1994, he appointed his brother - Sheikh Mohammed Bin Rashid Al Maktoum Crown Prince of Dubai. Since that time, Sheikh Mohammed is the guarantor of stable political conditions and the driving force behind the dynamic economic development of Dubai. All political and economic decisions Sheikh aimed at sustainable development and prosperity of the country. According to sources, Dubai, thanks to the system of monarchy made possible the use of long-term planning and coordination of all projects and policies of the country. It should be noted especially financial and trade conditions in Dubai, where virtually no taxes on corporate profits and individuals. Also, the country abolished the control of foreign exchange transactions and no customs barriers. In addition, energy costs and wages meet the international level of competition. However, adaptation to the Arab business conditions may cause some difficulties for foreign investors. So, during the negotiations the Arab partners deliberately avoid open discussion of the advantages and disadvantages of the project in question. Instead, they interrupt the talks, discussing among themselves the problem, and then inform the Western business partners about their decision. In general, life in Dubai is characterized by interweaving of different cultures, and is a model of tolerance, which are inherent to the friendly and welcoming, even though there are only foreigners tourists, shop-tourists or businessmen. Here are some differences with regard to foreigners, compared with the local population. First of all expats, ie foreign nationals, regardless of whether they are Arab citizens who came to work, or the rich Western managers do not have political representation in the country. In addition, they do not have the right to demand an audience with Sheikh during the so-called Madzhilz (meeting the country's leadership and its citizens, that is, according to Dubai's sources, the informal system of national representation). The Muslim religion plays an important role in the daily life of the country. Islam is the official religion of the state, and Muslims make up about 50% of the population. Accordingly, commercial ethics and the life of the international experts are strongly influenced by religious rules. On the other hand, high standards of living manifestation of the rule of Islamic radicalism. Therefore, the risk of terrorist attacks in Dubai is relatively low.

Logistics activities in Dubai. Consider the reasons for the development of logistics in Dubai. In 1959, by decree of Sheikh Rashid Bin Saeed Al Maktoum was built Dubai International Airport and the corresponding cargo terminal (Dubai Cargo Village, DCV). Currently, the airport is located in the center of the city, due to the rapid development of the latter. Power Dubai Airport is 25 mln. Passengers per year, compared with airports such as Frankfurt or London, with a capacity of 60 million or more. Passengers is small. However, there are opportunities and plans for increasing the capacity of Dubai airport to 75 million. Passengers. Another feature of this airport is that twice a day take place the peak passenger flow increase (from 12 am to 1 hour, and from 7 am to 8 am), which is explained by the existing schedules of flights at airports in Europe and Asia. This phenomenon is amplified by the fact that the Dubai airport is used as a transit point for flights over long distances. At this time, no logistical problems associated with the carriage of passengers the airport activity is observed. Quite a different situation has developed in the cargo terminal, the occurrence of which was due to the dynamic growth of freight traffic. So, in 2004 in comparison with 1999, the volume of freight traffic increased by more than twice - respectively with 480 thousand tons to 1.2 million tons Figure.... 1 shows the dynamics of freight traffic in the Dubai Airport and the two other major airports in the United Arab Emirates - Sharjah and Abu Dhabi. The existing equipment of the cargo terminal is considered the best in the region and therefore provides the most rapid handling. However, this does not relieve the terminal by logistical problems, of which there are at least two. Firstly, companies - Logistics operators feel the complexity of operating in the processing of goods. Secondly, there is no possibility to increase the capacity of the terminal in the future despite the growing demand for logistics. These problems are due, above all, the current placement of the airport within the city limits and the corresponding shortage of space. Therefore, significant volumes of goods stored on pallets in the open air, which is possible thanks to the arid climate of Dubai. However, sometimes there are rains and then the goods may be affected, especially if it is a computer or other sophisticated equipment. Such a situation does not affect the timeliness of air transportation of goods, but at the same time creates a big problem for all of their storage conditions. Dubai cargo terminal is located between the high-speed highway, which is why in the absence of free space is not possible to build new storage capacity. Fig. 2 and 3 shows the expected demand for logistics premises in the Dubai International Airport, determined on the basis of the analysis of the needs of companies, logistics service providers. Even today, the need for logistics area of ​​more than twice that available. In addition, in the near future it is expected to increase the volume of logistics services at the Dubai airport and expanding the range of provided logistics services. Prospects for the development of freight traffic volume of DMA and its logistics and land maintenance To solve the problem of lack of space for further development of Dubai International Airport (DMA) and the creation of the Dubai logistics campus (DLG) in the beginning it was decided to search for the necessary areas near the airport. Over time, such a proposal has been rejected, due to the fact that it was not optimal. Such a decision would lead to a shortage of land in the near future. Dubai's leadership has decided to build Dubai Logistics City (DLG) near the existing seaport Jebel Ali, create another free economic zone to include DLG in the Dubai World Trade Centre, near which place the new international airport Jebel Ali (JXB) (Fig. 4). Such a radical decision on the new place of accommodation DLG explained the following arguments. The need for logistics companies in areas DMA Firstly, the political system in Dubai allows you to make decisions about the long-term investment projects (as opposed to Europe, where the situation should be considered related to the elections). Therefore, in addition to such significant projects that have already been implemented, (among them - the hotel "Burj Al Arab" Tower "Burj Dubai" and "Palm Islands") Dubai sheikhs decided to build a new logistics facility is to continue to implement the grandiose building projects in Dubai are able to continue to improve the image of the city. Secondly, placement of a new international airport Jebel Ali and Dubai logistics campus in the desert part of the country offers significant advantages in terms of their territorial expansion in the future. Third, the neighborhood of the town of Dubai logistics and airport Jebel Ali enables logistics companies to take advantage of the free economic zone. Thus, it becomes possible for the carriage of goods to change one type of transport to another (air, sea, land), without the hassle. A new variant of accommodation of the town of Dubai logistics It should also be noted that the transport of cargo can be carried out by sea from the port of Jebel Ali, as well as trucks or aircraft. In the case of delivery of cargo to the neighboring country is not often used by large ships, container ships, and much smaller barges. An important advantage of Dubai is its favorable territorial arrangement in comparison with neighboring Oman and Yemen, as in the vicinity of the city there are no mountains, which would prevent the ground transportation of goods. Another advantage, in particular for air transport, is that Dubai airport connected with the major European airports. In addition, broadly, the presence at the airport in Jebel Ali free trade zone eliminates any difficulties and obstacles to the activities of the companies - international logistics operators. Fig. 5 shows the planned deployment airport Jebel Ali and Dubai logistics campus, located near the sea port of Jebel Ali. Accommodation Airport Jebel Ali and Dubai logistics campus As directed by the leadership of the country is made up of the further development of the Dubai logistics town (until 2050) taking into account possible changes in the external and development of the logistics sector. An example of the introduction of new technology are improved security. However, the critical issue is the limited area of ​​the international airport Jebel Ali. Hence the importance of acquiring effective territorial organization of the logistics infrastructure that allows efficient transport and process loads. That is why the development of free economic zones will be implemented as separate modules. In addition to the Dubai logistics campus also provides for the construction of office, research and other institutions, as well as housing estates. The composition of the Dubai logistics campus The main clients - consumers Dubai campus logistics services are logistics providers and manufacturers with significant volumes of freight transportation. At the same time, these companies can only be rented for a long term (rather than buy) the relevant land areas and facilities in the logistics sector. Particularly important Dubai Logistics town has trimodal for providers of logistics services, which are used to transport cargo by air, sea and land transport. Potential sectors - logistics customers Dubai campus may be the production of consumer electronics, pharmaceuticals, release of high-tech products, spare parts and other goods that use logistics services in supply chains. Meaning DLG further enhanced, taking into account the extent of the new airport in Dubai-Jebel Ali (JHV), which upon completion will be the largest in the world in terms of power (120 mln. Passengers and 12 mln. Tons per year), and area (140 km2, more than London "Heathrow" and Chicago "O'Hare" together). He will remove the second place of today's leader - the London airport "Heathrow", has a capacity of 83.5 million passengers a year.. Jebel Ali Airport will have at least six parallel runways and several lounges. It is expected that the new airport will be able to provide the growing needs of the Emirate in passenger and freight traffic until 2050 Creation on the basis of the airport and the Jebel Ali seaport of the same name Dubai International Logistics Center, in addition to the opportunities of sea and air cargo transportation, the development of infrastructures for overland transport modes. In particular, to the well-developed road network decided to add Railways (length of more than 700 km), which will connect the main cities of the Emirate and will be part of a large-scale railway network covering all the countries of the Persian Gulf. This project «Emirates Railways» (Railways Emirates) should become the main artery of the cargo area. Implementation of the project is designed for 5-7 years and will require at least $ 30 billion. It is also planned to build the Dubai Metro (up to 2012). The local Metro will have two lines (red and green), total length of 72 km with 55 stations. This will be the longest fully automated metro system in the world. in year.

#Engeneering #Development #Investment

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