DP World’s unit signs deal with Israeli firm to boost trade links
- 11 Jan 2021
DP World’s port-centric logistics arm Smart Solution Logistics (SSL) has signed an agreement with Israel-based Allalouf Logistics to explore new growth opportunities for the logistics and general freight forwarding business in the UAE and Israel. The agreement, which will foster trade between key trade hubs in both countries and beyond, was signed by Albert Kraak, Chief Operating Officer (COO) of SSL and Gil Miller, Managing Director, Allalouf Logistics Ltd.
Strategically located in Dubai’s Jebel Ali Port with excellent connectivity to terminals at the port, DP World’s SSL offers an extensive range of containerised logistics solutions. Using its worldwide network of ports and terminals overseas, SSL helps companies to link their supply chain to any part of the world using high-end IT platforms and variety of transportation modes. Through its collaboration with Allalouf Logistics that is part of the Allalouf Group, one of the largest and longest established shipping agencies in Israel, the company aims to reinforce the logistics sector, in the UAE, Israel and other prime markets.
The freight and logistics market in the UAE has grown steadily over the years, surpassing other major industries. It is recognised as a crucial enabler in the UAE’s economic diversification efforts. According to the Federal Competitiveness and Statistics Authority, the logistics sector’s gross output amounted to Dhs219 billion in 2018. Additionally, the sector’s contribution to the UAE’s GDP is projected to increase by 8 per cent in 2021.
Albert Kraak, Chief Operating Officer, SSL said: “We take pride in the fact that we have been able to consistently contribute to the growth of the economy and we will continue doing so. Despite the COVID-19 crisis, we achieved a 30 per cent year-on-year jump in revenue. The normalisation of trade ties between the UAE and Israel has further opened up growth opportunities for us. We firmly support the leadership’s vision for the country’s future development and are confident that this new venture will aid the economic prosperity of the nation, while also cementing the leading status of the logistics industry in the region.”
Kraak added: “Through our collaboration with Allalouf Logistics, our primary goal is to expand our network and reach markets that were inaccessible in the past. We hope to take full advantage of Dubai’s strategic location between Asia and Europe that gives it access to both the East and the West and Israel’s connectivity to key locations in the region. Utilising our world-class infrastructure, global network and our advanced capabilities, we are convinced that we can ensure the seamless movement of cargo via sea, land and air, providing valuable transportation intermediary and freight forwarding services.”
The fast-growing and highly competitive freight and logistics industry plays an integral role in carrying out trade regionally and globally. It is also a key contributor to the growth of economies around the world.
Gil Miller, Managing Director, Allalouf Logistics Ltd. explained, “The onset of the global pandemic has underpinned the importance of the logistics sector. Collaborations like these are essential to tackle the challenges in the supply chain and keep economies running. We are thrilled to collaborate with SSL as our philosophies of connecting key markets around the world and enhancing business using technology align well. We hope to be able to leverage SSL’s competencies and the UAE’s status as a vital global logistics hub. We at Allalouf have been committed to providing top-notch services for decades and we hope to continue our endeavours with partners like SSL. We see immense potential in this collaboration and are positive that it will promote trade and commerce between the two countries.”
As part of the agreement, both entities will deploy all efforts to establish and maintain suitable freight stations required for the operational receiving, consolidating, loading, shipping, unloading and orderly release of cargo, and full container load. This will include import and export, air and ocean cargo, and full container load and less than container load. The companies will also provide services relating to shipments and customs formalities, trucking and port handling, storage and collection of cargo.
Utilising their improved capabilities and resources, both companies are jointly working towards boosting business opportunities, collaboration and knowledge sharing across the logistics sector with the main objective of providing unparalleled services in key locations.
In September 2020, DP World and Dubai Customs said that they will be exploring opportunities to develop trade links between Israel and the UAE, following the signing of a series of memorandums of understanding.
