Maersk sets up its first Warehousing and Distribution facility in the UAE

Maersk has announced it entered into a three-year global end-to-end logistics partnership with Danish Crown starting from October 2021.

Maersk Kanoo UAE has signed an agreement with DP World’s trade and logistics hub, Jebel Ali Free Zone (Jafza) to set up its first Warehousing & Distribution (W&D) facility in the UAE. The agreement was signed by Christopher Cook, Managing Director, Maersk UAE and Abdulla Bin Damithan, CEO & Managing Director, DP World – UAE Region & Jafza. Maersk’s new 10,000 sq m facility will be located within Jafza in Dubai and will be an addition to its over 250 warehouses covering 1.5m sq m across 50 countries.

Jafza is a business hub located between Asia, Europe and Africa, connecting fast-growing manufacturing and consumer markets globally. It is one of the main free trade zones and is home to over 8,000 multinational companies. In 2019, it generated trade worth $99.5bn. According to Maersk, combined with the strength of Jebel Ali Port, it creates the ideal multimodal trade and logistics hub in the region, connecting businesses to more than 3.5bn consumers.

The facility will offer a total storage capacity of 80,000 cu m and cater to goods including petrochemical, fast moving consumer goods (FMCG), technology and automotive. The facility is also in the vicinity of Al Maktoum Airport, for consumers requiring air cross-docking and those moving less-than-container-load cargo as well.

The new facility will be powered by a warehouse management system using digital solutions for inventory management, track & trace at unit-level and dashboards for visibility and insights. For example, with advanced solutions for expiry date management, wastages in FMCG could be brought down to zero.

Ocean shipping and inbound logistics and distribution have traditionally been shared amongst multiple stakeholders in the UAE, resulting in complex logistical requirements. With its new W&D facility, Maersk hopes to build a solution for its customers to get access to multiple logistics requirements, not only for the goods flowing in and out of UAE, but also to other Middle Eastern countries who use Dubai as a gateway to global trade.

Cook said: “In today’s times, adding flexibility to supply chains has become more crucial than ever. I am excited that we are taking a solid step in this direction.”

Abdulla Bin Damithan CEO & Managing Director, DP World – UAE Region & Jafza added: “Our infrastructure combined with proximity to different operations and businesses lays the foundation for Maersk’s growth ambitions in the UAE.”

Source: Maersk Group

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