DUBAI SOUTH, MAERSK SIGN AGREEMENT TO EXPAND MAERSK’S UAE WAREHOUSING AND DISTRIBUTION FOOTPRINT BY MORE THAN DOUBLE

Maersk Kanoo UAE, the global integrated logistics company, today signed an agreement with Dubai South, the largest single-urban master development focusing on aviation, logistics and real estate, for its new warehousing and distribution (W&D) facility in Dubai. The agreement was signed by Christopher Cook, Managing Director, Maersk UAE and Mohsen Ahmad, CEO of the Logistics District, Dubai South, at the regional headquarters of Maersk West & Central Asia in Dubai.

The 162,000 square feet ‘Maersk Integrated Logistics Centre DWC’ facility in the Dubai South Logistics District will have a capacity to cater to 15,000 pallet positions and 10,000 bin locations; it will also serve as an e-fulfilment centre. 

Ocean shipping, as well as inbound logistics and distribution, have traditionally been shared among multiple stakeholders in the Middle East, resulting in complex logistical requirements. To create a seamless experience and integrated logistics solution for its customers, Maersk has strategically invested in W&D facilities and provided ocean and landside transportation. Following the inauguration of the first W&D facility (108,000 square feet) in Dubai at JAFZA earlier this year in March, Maersk will more than double its total footprint in the UAE with the new fulfilment centre. 

In his comments, Christopher Cook said: “At Maersk, we are in constant dialogue with our customers to understand their logistics requirements and supply chain pain points. Our customers have appreciated the single-window access to all their logistics requirements through our integrated solutions.” 

He added: “Upon carefully studying different possibilities, we zeroed in on Dubai South for our new fulfilment centre considering its strategic location connected to Al Maktoum International Airport (DWC) and the mainline port and hub of Jabal Ali. This will allow us to further build on our air-sea hub operation, which has become increasingly important while also satisfying the right balance between speed and cost with tremendous flexibility.”  

Mohsen Ahmad said: “We are pleased to sign this agreement with Maersk, which will help expand its footprint across the UAE. Our mandate at Dubai South is to attract top international players to the Logistics District with the aim of boosting the sector, and diversifying the emirate’s economy, in line with various government initiatives and strategies. In reinforcing Dubai’s status as a global trade and air-freight logistics hub, we will spare no effort to offer Maersk optimal solutions to further advance its air cargo operations as well as support them in their growth journey.”

The Maersk Integrated Logistics Centre DWC at Dubai South will become operational later this month. The new facility will allow Maersk to operate a hybrid model of a bonded and non-bonded warehouse and truly fulfil different customer needs, including that of a fulfilment centre for end-to-end e-commerce solutions. The facility will also play an important role in supporting Maersk’s existing services, including ocean shipping, landside transportation, customs clearance, etc. Customers taking advantage of the integrated solutions from Maersk will benefit from reduced handovers of their cargo through its journey, leading to potentially faster turnaround times, higher visibility, better control, and more predictability of their supply chains. 

With seamless access to seaports, airports and major roads, the Logistics District offers unrivalled speed, connectivity, and flexibility to contract logistics operators, freight forwarders, integrators, agents, and traders. The district also hosts EZDubai, the fully dedicated e-commerce zone which was designed to attract leading e-commerce companies and create a benchmark with its infrastructure, as well as aims to promote the emirate’s position as a hub for regional e-commerce.