Empost Cargo and Logistics expects 20 pct growth this year

On February 2007 Empost – UAE's national courier company – diversified to create a subsidiary division for cargo and logistics in order to offer integrated transport and logistics services covering more than 200 destinations.

The new entity, Empost Cargo and Logistics, has specialised infrastructure and operates out of dedicated locations, with its hub at one of the most important locations for the logistics sector – the Dubai Airport Free Zone (Dafza)Dubai Airport Free Zone (Dafza).

Sultan Al Midfa, CEO of Empost, spoke to Emirates Business about the performance of the company's logistics division.

How has the performance of Empost Cargo and Logistics been since its establishment last year? Have you managed to meet your expectations?
Yes, we have met all expectations – our own and those of the market. Initially, we were known as a courier company. Since we established the cargo division, we have emerged as the leading express courier, cargo and logistics company in the UAE and the region. We have become a 'one-stop shop' in the local market.

What services did you start with, and which ones have you added so far?
To cater to the booming logistics and supply chain industry in the Middle East, Empost launched its cargo and logistics services in 2007. We started with freight forwarding (air and sea), land transportation, warehousing and packing services. Then we added wooden packing services to our list, providing value-added services to our clients.

We plan to open new offices at the Logistics City, and in Jebel Ali and Sharjah, as well as other countries.

Our total investment last year was 24 per cent of our capital and for this year, investment expectation is 12 per cent of our capital.

According to your 2007 financial report, Empost Cargo and Logistics achieved a 31-per cent growth over 2006. What are the reasons for this? Did you expect it?
We have achieved more than we expected. The cargo and logistics sector in the UAE is booming, because of various development projects that have attracted numerous local as well as foreign investors.

What kind of business model are you following? Is it any different from that of the other 3PL companies in the region?
We have our own growth strategy, which is constantly reviewed and enhanced to help us tap further opportunities. We have a simple, straightforward strategy to help us maintain our position as the market leader and offer quality service at a reasonable price.

What are some of your facilities in terms of transport and storage?
We have two large warehouses in DafzaDafza and we are planning to get additional warehouses at Logistics City and Fujairah. The portfolio of services offered by our land, air and sea freight divisions includes flexible land options from standard to expedited services, door-to-door and airport-to-airport forwarding, sea to air and air to air trans-shipments, customs clearance, warehousing and distribution and land transportation within the UAE and across the world. Through our strategic alliances with various ocean freight and transportation service providers, EmpostEmpostEmirates Corporation for can handle any shipment size, special equipment and oversized cargo.

How big is your footprint in the region and globally? How do you see this increasing in the next two years?
Empost has been in the market for more than 10 years, and we have excellent alliances with well-known regional and global companies that are known for quality service.

Over the next two years there will be a lot of new projects implemented to help us serve various communities, especially, the UAE, India, Philippines and Indonesia.
Empost has tied up with major government institutions, banks and corporations. Currently we are working on plans of extending our services into new destinations and assessing new products and services that are targeted at niche markets.

How do you leverage the services and facilities of your parent company, Emirates Post , to effectively run the business?

Emirate Psot has a well-established network of its own, and because we come under the same group, we are able to tap into some of the resources of Emirates Post to help us deliver high quality service to our customers. As a one-stop shop, we offer our customers a variety of services, which include cargo, courier or any other service.

How much growth is Empost Cargo and Logistics expecting this year and in the coming year, in terms of revenue and operation size?

We are expecting about 20 per cent growth this year. However, the division will continue to greatly contribute in the overall performance of Empost. Currently, the cargo and logistics division contributes about 30 per cent towards the overall performance of Empost for Commercial Postal Services

What are your future expansion and acquisition plans in the region and beyond? What is your budget for such programmes?
The growth in global trade and commerce has resulted in an unprecedented demand for consistent and economical courier services worldwide, and Empost Corporation for Commercial Postal Services plans to capitalise on this growing business trend.

Empost is now in a high-growth phase with our focus on markets outside the Middle East and on enhancing our presence in the South Asian markets, such as India and Pakistan. In addition we would also like to step up efforts to provide our range of services to customers in Europe and North and South America.

As we expand by opening up business in existing and new markets, Empost will ensure that we do not depart from our core principle of providing only the best services. Our future plan is to open up new markets in the Far East and South India. Also, China is a big market and we are working towards tapping the potential there.
What are some of the latest technologies you use to improve services?
As part of Empost 's continuous endeavour to revolutionise operations, we recently invested Dh6 million in installing an advanced IT communications system in our fleet comprising more than 500 delivery vans and motorcycles.

Under this plan, Empost courier vehicles will be equipped with the latest wireless communication technologies, such as mobile data service, GPRS, the satellite-based navigation system GPS, messaging and other tracking systems.

We also have the track and trace facility and pre alerts for shipments, which come from outside the UAE. Through the track and trace facility, customers can track shipments from the point of dispatch right through to the point of delivery via EDI link. This facility tries to minimise cases of missing documents. Customers will be able to track their shipments with real-time control through comprehensive online tracking facility on the company's website, www.empostuae.com, with a value-added proof of delivery feature. e-booking is a new value-added service for Empost customers where they can book their shipments online.

What are the major industry-related challenges you are currently facing?
Competition is the biggest challenge that we face, but it is always welcome and we are well equipped to face and overcome the numerous challenges that come with competition.

Midfa started his career with the Royal Mail in the UK as a trainee. In 1997 he joined the then General Postal Authority – known now as Emirates Post – as a supervisor at the Advisor's Office, before serving as Head of the International Relations Section at the organisation between 1998 and 2000.

From 2000 to 2003, he was Director of Operations Exchange Centres at Empost , and was then appointed the Deputy CEO. In June 2005 he became Empost 's Chief Executive Officer. Other key positions he has held include Head of the Courier Council and Head of Mail Sorting Centre – implementing the new Letter-Sorting Machine Project through the OCR (Optical Character Reader) system.

He graduated from the Dubai Men's HCT with a higher diploma in business administration.