How amazing!

Do you know
Which hotel is most expensive in the world ?
The cheapest price is US $1,000 per night

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How amazing!
Which building is highest in the world ?

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How amazing!
Man-made islands in the shape of a palm tree

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Dubai Logistics City:

A Quantum Leap in Logistics
Professor : Lyu Ph.D
StudentMira

LOGO

Dubai
Dubai is the second largest and second wealthiest of the seven
emirates that from the United Arab Emirates
1.2 million inhabitants
Dubai is known as the Switzerland of the Arabian countries
Its largely neutral and stable role in its external political
environment
There are no corporate or income taxes
As a result of tax concessions and development of the harbor,
the city of Dubai encourage foreign traders to use the city as a
link between the West, Persia and India

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 The discovery of oil in 1966 led to rapid growth and

infrastructure development
The royal family pays close attention to the diversification of
their economic foundations
Development of the trade and tourism sector was encourage
early on

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Dubai location

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Business opportunities

Main focus on trade, manufacturing and processing, as well

as on transport and distribution
It become a leading regional trade hub, serving about two
billion customers worldwide
Jebel Ali Free Zone, Dubai Internet City and Dubai Media
City were very favorable for foreign investors
Foreign companies could set up free of local ownership and
benefit from a renewable 15 year guarantee of no taxation

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The current logistics activities in Dubai

Dubai International Airport
Location in the middle of the city
25 million passengers fly to and from the Dubai
International Airport per year
Dubai is used as a hub for long-distance flights
Dubai cargo village
Since 1999 the amount of air freight has more than doubles
from approximately 480000 tonnes in 1999 to
approximately 1.2 million tonnes
They are very flexible and enable a fast handling of goods

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The current logistics activities in Dubai

The airports unusual location in the middle of the city and the
resulting space limitations

4500
4000

kilo tonnes

3500
3000

4025
3700

2500
2000

2003

1500

2015

1000
500

1581
948

825

449

0
Total Airside Cargo
Volume

Total Cargo
Capacity at DCV

Landside volumes

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100000
90000

80000
70000
60000

70000

100000

Current DCV
Space Required Now

50000

2010

40000

2015

30000

30000

20000
10000

13000

Current DCV

Space Required
Now

2010

2015

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 Two problem
The logistics service providers face significant operational
constraints in cargo handling
There is no, or only limited, capability to meet the growing
demand for value-added services in logistics

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The idea of Dubai Logistics City

A quantum leap in logistic

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The idea of Dubai Logistics City

Build Dubai Logistics City next to the existing Jebel Ali Port
as another free zone and part of the future Dubai World
Central which would also host an all-new airport
It will be very easy to change freight from air, sea or land
transportation
The location of Jebel Ali as a free zone has no regulatory
obstacles for logistics services providers
A capacity of 120+ million passengers and 12 million tonnes
of airfreight are expected to be handled per year

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Elements of the master plan

Dubai Logistic City (2007)
Jebel Ali International Airport (2007)
One runway
Executive flights
Passenger terminals
Residential City (2007)
Dubai World Trade Center (2008)
Dubai Air Show (2009)
Master Planning reaches into 2050 and includes
Commercial city
Aviation city
Technology park
Golf resort
Full passenger airport
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Thank You for Your Attention

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Establishing a branch at Dubai Logistics City

Advantages
Geographic location : close to Asian countries, India and to
a certain parts of Africa
The political system : relatively stabile and neutral, reduce
the political risks for foreign companies
An important hub : for passenger and cargo air traffic that
enables fast handling of goods for transports around the
world
Easily switch : between road, sea and air transport within a
free trade zone

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 Reduce transport time : customers can react more flexibly

to demand changes
Lower stock levels : improve their overall resource
allocation
Provides enough space : establish services for the
conditioning and processing of goods

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Disadvantages
Muslim country : the risk of terrorist attacks exists
The problem of corruption and existing insider
relationships
Aware that other locations : such as Shanghai or Hong
Kong, could develop similar logistics platforms
The extreme temperatures : have a negative effect on food,
pharmaceuticals, flowers and other temperature-sensitive
goods

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