Growth of the logistics and transportation industry in the UAE

Article Contributions: Mr. Janardan Dalmia – Trukkin ME

Growth of the logistics and transportation industry in the UAE

There is little doubt that the logistics and transportation industry plays a significantly important role in the development and urbanization of the Middle East.  

Owing to a well-developed logistics eco-system, some of the most urbanized cities – such as Dubai and Abu Dhabi, Riyadh and Jeddah, amongst others – have undergone rapid growth. Any developing country worth its salt has to take its logistics system seriously, and GCC, and more specifically UAE, has always been one step ahead since it plays a major role in the economy of countries in the region.

The Middle East logistics market is of a significant size. With the envisioned growth in the economy throughout the region over the next ten-year period, the transport sector will undoubtedly expand. Ultimately, everything that is produced or traded has to be transported on land. Additionally, with the advent of new-age tech and digitalization, the sector looks set to go through an evolution over the next few years which will have an overall positive impact on the transport sector in the Middle East. UAE leads the innovation and growth within this sector. 

Challenges of the logistics and transportation industry in the region

A fresh iteration of the commercial transport business has been long overdue as there has been no change in how it has operated over the past few years. With the advent of new technology and consumer adoption of the digital lifestyle, it became increasingly evident that the logistics and transportation industry in the region needed to be viewed through a fresh set of eyes. Like most other industries, transportation and logistics (T&L) is currently facing immense change, and like all change, this brings both risk and opportunity, with new technology, new market entrants, new customer expectations, and new business models. There are many ways the sector could develop to meet these challenges – some evolutionary, others more revolutionary.

The next wave of innovation will emerge from the streamlining of the logistics system with the help of technology. Although the adoption of technology is not guaranteed to happen any time soon, there remains a significant opportunity to digitize the industry. The goal is to enhance efficiency, consistency, transparency and reliability within the transportation & logistics ecosystem. Providing transporters with increased asset utilization and providing shippers with flexibility, improved service levels, real-time updates, accelerated delivery, optimized direct and indirect costs and enhanced simplicity adds value to the overall logistics eco-system. Data analytics – by which data-driven decision making will enhance overall efficiency in the market – will play a key role in the future of this sector. 

How technology is redefining the logistics and transportation business

Logistics companies are facing an era of unprecedented change as digitization takes hold and customer expectations evolve. New technologies are enabling greater efficiency and more collaborative operating models; they’re also re-shaping the marketplace in ways that are only just beginning to become apparent.

The latest advancements in technology have transformed the way we live our lives and conduct our businesses today. The logistics and supply chain industry offers huge transformative potential. Emerging new technologies, such as mobile apps, Big Data, IoT (Internet of Things) and AI (artificial intelligence), are providing the scope needed to reimagine the logistics and supply chain processes. In turn, this has allowed the logistics and supply chain organizations to cut down inventory costs, reduce working capital, lower storage space, and improve speed to market.

Mobile apps technology has enabled logistics organizations to carry out operations remotely and no longer be constrained to the office. Logistics managers and fleet owners can track their shipments on maps in real time from their location. Using geo-fencing technology, customers and fleet owners can get regular, periodic vehicle arrival alerts before loading and unloading.

Big Data, advanced analytics and the Internet of Things are revolutionizing the logistics industries. Logistics industries can monitor, track and store vital information (route, fuel consumption, number of stops, temperature of the container, etc.) from every truck. Leveraging this data means they can now make smart decisions and control many of these parameters from a central location. 

The world of artificial intelligence is enabling the logistics industries to solve complex problems concerning driver allocation, vehicle positions and vehicle allocation. Machine learning techniques help facilitate real-time demand–supply matching and the efficient utilization of given resources.

Trukkin is leveraging the above technologies to improve efficiencies, bring in a more transparent way of operating and simplify the logistics process in the Middle East region. 

Trukkin continues to invest in other technologies like advanced analytics, Big Data, IoT and AI to help transform the logistics and supply industries.

Expansion and investment plans

Trukkin is building a pan-Middle Eastern network of transporters and clients which will help create an unparalleled network of logistics. We will continue to invest in R&D and technology upgrade, thereby strengthening and scaling further our business. Our aim is to be the one-stop destination for everyone’s logistics needs. 

Exciting times are expected for the future of the logistics and transportation industries in the Middle East. The continued rapid pace of urbanization, which is almost guaranteed with all the development and infrastructure building in the works right now, along with the pace of such developments and growth, means that logistics is certain to play an important role in facilitating the emergence of this new era. Furthermore, there has been strong support from governments and authorities in encouraging innovation within this sector. 

With this in mind, we are always adding new products and services that will better serve the needs of our clients. Currently, we supply our services and expertise to almost ten countries in the Middle East – either directly, or indirectly when our trucks are traveling to these countries. We have already set up bases in Dubai, Abu Dhabi, Riyadh, Jeddah and Dammam and continue to service the broader Middle Eastern region.