Apparel Logistics Dubai

Transportation Infrastructure
in GCC States: Challenges

and Opportunities
Prof Philbert Suresh

Faculty, Business Administration
Founder – GUST Logistics Forum
WORLD BIZ CONFERENCE
April 26 – 27, 2007
Scope of the Research Paper
 Three words define the research paper on development economics:
investment, integration and strategy-thinking that will translate to a
trade-related infrastructure; development of transportation & logistics
systems; and focus on sharing scarce resources to manage the
opportunity cost in the Gulf Region. The signposts are clear for a GCC
Rail Link, Intermodalism and Shipping, thus creating a production
possibility frontier beyond the immediate boundaries of each GCC
state. Will a change of mind and heart lead to harmonization of trade
and transportation policies in the region that will benefit the greater
number of stakeholders – the government, business enterprises and
the people in this part of the world? Actions Research is a new
methodology that will provide some clues to this development today.
www.gust.edu.kw/glf 2
Salient Points
 Drive Towards Triangulation: investment, integration and strategy-thinking
 Share scarce resources and manage the increasing opportunity cost
 Create a production possibility frontier beyond the immediate boundaries
 Redefine GCC Leadership - change of mind and heart
 Harmonize trade and transportation policies
 Profit greater number of stakeholders – the government, business enterprises and the people in this
part of the world
 Use Action Research: a new methodology for exploring clues to transportation/logistics management
in development economics .
Transportation
&
Logistics Issues
in
GCC States
On scrutiny
T & L in GCC States
 Intra-regional trade patterns – defines development
economics
 Harmonization of inter-regional transport policies
 Effective use of scarce resources – the petrodollar
 Better management of opportunity cost and production
possibility frontier
 Integration of Intermodalism and Logistics in GCC states:
Customs Union / Free Trade / Single GCC currency
 Curriculum, professional training and development in
GCC states
What is GUST Logistics
Forum in Kuwait?
“Our mission is to empower young
creative minds for the 21 century
Transportation and Logistics using
appropriate technology for economic
growth and leadership in GCC States”
Kuwait Bahrain KSA Oman Qatar UAE
Area 17,800 706 2.250.000 309,500 11,500 83,600

(Sq Km)
Population 2,270,865 642,972 20,665,000 2,287.642 544,031 2,776,000
(mln)
GNP ($mln) 29,705 6,620 139,383 15,596 12,180 52,125
Exports ($ 12,100 1,583 50,756 4,968 4,010 23,200

mln)
Imports ($ 7,616 2,430 28,032 5,701 2,496 38,510
mln)
Favorable Unfavorable Favorable Unfavorable Favorable Unfavorable
BOT BOT BOT BOT BOT BOT
SOURCE: Gulf Cooperation Council Secretariat – August 6, 2002
GCC: Scarcity and Choice
Unfavourable BOT Favourable BOT
EXPORTS – IMPORTS EXPORTS – IMPORTS
DEFICIT (-) SURPLUS (+)
UAE = -15, 215 ( 28,510-23,275) Kuwait = + 4,514 (12,140-7,616)

KSA = + 22,724 (50,756-28,123)
Bahrain =- 847 (2,430-1,583)
Qatar = + 1,514 (4,010-2,496)
Oman = -733 (5,701 – 4918)
TOTAL = 28,762 Million USD
TOTAL = 16,795 Million USD
NET GAIN GCC( mln) = US$ 11,987 (28,762 – 16,775)
A Simplified Framework of the Global Economy
Global Shifts in GDP
The reverse is happening today – re-emergence of rapidly transforming economies such

www.gust.edu.kw/glf
as China and India with sustained high growth and oil wealth of GCC countries from 10
1980 to present
World Merchandise Production and Trade
The Global Triad – Concentration of
World GDP and exports
The Network of World Trade
Land Utilization
Spatial Planning for Intermodal Transportation
 Population to Land
Ratio in GCC States
– Kuwait
– Bahrain
– KSA
– Oman
– Qatar
– UAE
SCARCITY, CHOICE, AND
OPPORTUNITY COST IN GCC STATES
THE PRODUCTION POSSIBILITY FRONTIER
A graph that shows all the

combinations of goods and
services that can be produced if
all of society’s resources in GCC
States are used efficiently.
Production Possibility Frontier PPF – Intermodal
Transportation – Two Modes
Sea
Rail
Production Possibility Frontier leverages each mode
of transport andwww.gust.edu.kw/glf
optimizes the final output – of 16
containerized cargo movement

SCARCITY, CHOICE,
AND OPPORTUNITY COST
Negative Slope and Opportunity

Cost
marginal rate of
transformation (MRT)
The slope of the production
possibility frontier (ppf).
Inefficiency from Misallocation of Land in Transportation
Transportation
&
Logistics
TECHNOLOGY
Transportation Trends of Future
Conventional vs Hybrid
CONVENTIONAL Diesel bus sale price is US$ 354,000
HYBRID bus goes for $500,000 a pop!
Comparative Cost of
Technology – Trucking
 Over the course of 12 years life span, a
conventional diesel bus will consume
142,656 gallons, or $343,800.96 worth of
diesel fuel (based on current diesel
prices...which will be a distant memory by
the end of the year). Our company's bus,
however, will consume roughly 88,447
gallons, or $213,157.27 worth of diesel
fuel.
Soaring Energy Stocks
Renewable Bio Fuels :
Ethanol + Solar + Bio Thermal
Hydrogen Fuel Cars –

Test Market of Automakers
Transport Simulation -
Intermodalism
 The intermodal transportation simulation system
technologically offers for a first time opportunity to
electronically integrate, by modeling and simulation, the
intermodal world of transportation (highway, maritime, rail,
and air) using sensory modes (vision and acoustics). Virtual
reality at present primarily involves the sense of vision.
 However, we live in a multisensory world. The intermodal
transportation simulation system offers a major sensory
breakthrough which couples intermodalism with technology
that can better describe present day problems, as well as
develop effective solutions for the 21st century
Cash is Dead = E Payments
The Virtuous Circle: Electronic Payments
and Economic
"...the annual number of electronic

payment transactions, currently at
approximately 210 billion worldwide,
will double by the end of the decade
and is growing at a compounded
annual rate equal to four times the
expected growth in real domestic
product (GDP)."
- Global Insight, www.gust.edu.kw/glf 26
Leading World Cargo Airports
Leading World Container Hubs
Transportation
&
Logistics
ACTION RESEARCH
METHODS
AR Defined
 Action research aims to contribute both to the practical
concerns of people in an immediate problematic situation
and to the goals of social science by joint collaboration
within a mutually acceptable ethical framework (
Rapoport, 1970, p. 499).
 This AR is very appropriate to study the collaborative
nature and series of transportation and logistics activities
in the spectrum of the Supply Chain Management. The
presenter is involved in using AR for Intermodalism and
Logistics.
Participatory AR Methods
 Find and critically review secondary  Groups (casual or random
data encounter; focus; representative or
 Observe directly (see for yourself) structured for diversity;
 Seek those who are experts about community, neighbourhood or a
specific issues specific social group; or formal
 Key probes (Dubai RTA study of managing  Mapping and modelling (GIS)
traffic increase on the roads – 5m to 20 m trips per
day in 2010)  Local analysis of secondary sources
(Satellite Imagery GOOGLE Earth / GPS)
 Case studies and stories (retail price
increase in dairy products – monopoly)  Transect walks(Simpson BBC program)
 Do-it-yourself  Timelines and trend and change
analysis
 Seasonal calendars
 Daily time use analysis
More AR Methods
 Institutional or Venn  Shared presentations
diagramming and analysis
 Linkage diagrams  Contrast comparisons
 Well-being grouping (or
 Drama and
wealth ranking)
 Matrix scoring and ranking
participatory video
 Team contracts and making on key issues
interactions
AR Menu of Methods - Review
 Transect walks: systematically walking with key informants
through an area, observing, asking, listening, discussing, learning
about different zones, local technologies, introduced technologies,
seeking problems, solutions, opportunities, and mapping and/or
diagramming resources and findings.
 Transects take many forms: vertical, loop, along a watercourse,

sometimes even the sea bottom!
Simpson’s World
Example of AR
BBC world affairs
editor John
Simpson has
visited most of
the world's
trouble-spots
14 KM from North Rim
Grand Canyon, Arizona
Panorama Google Earth

Grand Canyon Skywalk
March 21, 2007
Members of the media and the Hualapai tribe take a preview walk
on the
Skywalk, billed as the first-ever cantilever-shaped glass walkway.
It extends 70 feet from the western Grand Canyon's rim more
than
4,000 feet above the Colorado River on the Hualapai Reservation 36
www.gust.edu.kw/glf
at Grand Canyon, Arizona.
A world of diversity
 "Nothing is as practical as
a good theory” (Kurt
Lewin 1940)
 YoMiM Experiment in
AR (research conducted
by a group of young
women in management
(YoWiM), initiated by
Kate McArdle as part of
her PhD Research }
Future Research
INTERMODALISM
Mitsui wins $763m
Saudi railway order
by Reuters on Tuesday, 03 April 2007
Mitsui said it is teaming up with Al Rashid

Trading & Contracting Co. of Saudi Arabia
and Australia's Barclay Mowlem to build
an 818km (508 miles) portion of the
North-South Railway, which is being built
to move mineral traffic from Saudi
Arabia's interior to an industrial complex
to be built on the Gulf coast.
Tracing Origin Through RFID
 When the origin of
clothing brands
becomes a concern for
imposing quota
liberalization and
counterfeit products,
smart labels is a boon
to those who manage
the global trade.
Technology - Poncho Knit
 “ Technology is the latest
accessory to hit the
apparel world. By
embracing technology
solutions, forward-
thinking apparel and
footwear companies are
fashioning tight, visible,
integrated supply chains
-- and reaping the
rewards.” Amy Roach
Celebrity and Brands
Impacts Retail Logistics
 Such celebrity-inspired
fashion crazes, as well as
each year's must-have
items, and standard
seasonal clothing such as
bathing suits and
outerwear, make the
apparel supply chain
more time-sensitive than
many other verticals.
Fulfillment in e-Logistics
Check your Car tire pressure Everyday – that affect CO2 emission in Dubai and
everywhere
Students form a windmill at Youth Energy

Summit at Willim and Mary College – Nov
2006
The Cube Game
By way of summary, we would emphasize

that action research is not a methodology
but an orientation that shapes
methodological practices.
There are no right answers,
rather lots of choices,
and quality of inquiry is shaped by
the appropriateness of these choices
and way they are made.
Peter Reason and Kate Louise McArdle
Centre for Action Research in Professional Practice
University of Bath

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Transportation Infrastructure

in GCC States: Challenges

Prof Philbert Suresh

Area 17,800 706 2.250.000 309,500 11,500 83,600

Exports ($ 12,100 1,583 50,756 4,968 4,010 23,200

SOURCE: Gulf Cooperation Council Secretariat – August 6, 2002

UAE = -15, 215 ( 28,510-23,275) Kuwait = + 4,514 (12,140-7,616)

NET GAIN GCC( mln) = US$ 11,987 (28,762 – 16,775)

The reverse is happening today – re-emergence of rapidly transforming economies such

A graph that shows all the

containerized cargo movement

Negative Slope and Opportunity

Inefficiency from Misallocation of Land in Transportation

CONVENTIONAL Diesel bus sale price is US$ 354,000

HYBRID bus goes for $500,000 a pop!

Hydrogen Fuel Cars –

"...the annual number of electronic

 Transects take many forms: vertical, loop, along a watercourse,

Panorama Google Earth

Mitsui said it is teaming up with Al Rashid

Students form a windmill at Youth Energy

By way of summary, we would emphasize

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