- The facility consolidates CPL's foothold in UAE's Dh86 billion logistics market
- UAE logistics sector is expected to grow by 4 per cent, with a compound annual growth rate (CAGR) of 5.7 per cent between 2015 and 2020
- CPL is mulling cost effective solar energy sources to reduce dependency on expensive traditional electricity supply
- 25 per cent of the GCC's Dh 171 billion logistics market is spent on warehousing
Dubai, UAE, April 16, 2017
The Centre Point Logistics (CPL), Dubai's leading provider of logistics, warehousing and storage facilities, today announced the commencement of operations of its newly built Dh60 million state of the art warehouse at Dubai Logistics Corridor in Dubai South.
With current total investments of over AED100 million in warehouse and distribution space of over 3 million square-feet in UAE and Oman, CPL's turnover is expected to increase to around AED 50 million per year, the company statement said.
The 242,726.2ft² warehouse further consolidates CPL's foothold in Dh86 billion logistics market of the UAE, in overall GCC market of worth Dh171 million. Establishing the warehouse at the Logistics Corridor in Dubai South enables CPL to leverage proximity to Expo 2020 site, Dubai's Jebel Ali Port, the Al Maktoum International Airport, the world's largest airport in the making, which gives the company an edge in terms of time saving and significant reduction in operational costs for its clients.
Oliver Pesov, Deputy General Manager of Centre Point Logistics (CPL), commented:
“Our new state-of-the-art warehouse facility has been built based on our study of local and international market requirements from every angle. We are fully LEED certified logistics provider. We are also in discussion with suitable solar energy contractors who are checking the possibilities of installing solar panels on the rooftop of the warehouse in order to reduce or avoid the consumption of traditional electricity. Operationally, the facility can be single or multiuser, supporting indoor and outdoor storage as well as dedicated area for value added services like, labelling, packing, re-packing and allied services.”.
A report published by Frost & Sullivan last year forecasted, the UAE logistics sector is expected to grow by 4 per cent, with a compound annual growth rate (CAGR) of 5.7 per cent between 2015 and 2020. The key drivers of the industry are Expo 2020, national logistics development plans, and trade with Asia and Sub-Saharan African countries.
Around 25 per cent of the GCC's Dh 171 billion market is spent on warehousing. Centre Point Logistics (CPL), with its pioneering Open Architecture model currently operates from several locations in UAE. CPL's logistics hub in Jebel Al Free Zone, spanning over 44,000sqm,existing logistics hub in DWC, spanning over 83,000sqm and a storage facility in Hamriyah Free zone in Sharjah spanning over 30,000 sqm. All three facilities are providing storage, handling and Value Added Services (VAS) to the logistics and supply chain customers.
“The new facility consolidates CPL foothold in the UAE logistics market, a reliable partners for Al Maktoum International Airport and Expo 2020 customers. It reinforces company's commitment to its customers for providing the quality services.” Oliver concluded.
Outside UAE, the company acquired 50,000 square-metre logistics facility at Sohar Port and Freezone in Oman two years ago. CPL considers it a milestone because it gives wider access to the GCC market, including Saudi Arabia which has a link to road Sohar Port. With its strategic location and road linkages to UAE, Oman and Saudi Arabia, Sohar Freezone offers its clients the most efficient and cost effective services. The road distance between Dubai and Sohar, via Hatta, is just 240 kilometres and the drive time is two hours and 36 minutes.
The UAE pouring billions across its logistic sector with investments made in economic free zones, airports, and ports. Dubai is developing Dubai World Central (new name: Dubai South), which is already home to super hub airport Al Maktoum International and connects with DP World's flagship port Jebel Ali. While Abu Dhabi is developing the Midfield Terminal Complex at Abu Dhabi International Airport and continues to invest in its new flagship industrial zone and port, Kizad and Khalifa Port.