Dubai-based freight forwarder Aramex and German logistics leader DB Schenker are looking to feed of each other’s capabilities in Abu Dhabi and the wider Middle East and Africa region after the two companies signed a memorandum of understanding (MoU).
The deal aims to drive forward synergistic opportunities in supply chain solutions across multiple critical industries to and from Abu Dhabi and the wider MEA region.
The move comes as Aramex looks to expand its freight forwarding service offerings in the region, which was previously reliant on the oil & gas sector, and as DB Schenker is looking to tap opportunities in the fast growing market.
According to Aramex, lower levels of activity in recent years in the energy sector has had a knock-on effect in its freight forwarding business. Last year, the group saw demand in healthcare, pharma and the FMCG industries pickup up the slack left by oil & gas.
Aramex will be leveraging on DB Schenker’s experience in specialized freight solutions for industries to further boost its capabilities and offerings in aerospace, defense, infrastructure, and healthcare.
Meanwhile, DB Schenker is looking to capitalise on local knowledge and expertise in the region to expand its presence in Abu Dhabi, which is becoming a growing trade and logistics hub for Middle East and Africa.
The German transport giant recently started the construction of its third logistics facility at Dubai South, which will expand its contract logistics space to 84,000 square metres by June 2022.
The new state-of-the-art logistics center will use 100 percent renewable energym with 37,000 square metres of warehouse space and a mezzanine area dedicated for value-added services and spare parts operations.
Moving forward, Aramex said it will continue to strengthen its freight forwarding capabilities through strategic partnerships, investment in technologies and hiring and upskilling the necessary talent.
“We have been strategically focused on enhancing our core freight forwarding business through investment in technologies and expanding on the ground operations with the intention of enhancing our capabilities, capturing greater market share in core markets and diversifying our customer base by penetrating new industry verticals,” said Othman Aljeda, Aramex chief.
“Our alliance will enable Aramex to become a stronger, more competitive player in the sea and air freight forwarding services in Abu Dhabi and other core markets.”
Christopher Smith, Chief Executive Officer of DB Schenker, Middle East & Africa, said: “We are excited about this expansion plan, and we look forward to realizing synergies and scaling our operations in the region to serve our existing major accounts and new potential clients more comprehensively.”