Logistics park facilities in Kuwait to be equipped with latest ICT technologies

KUWAIT – October 31, 2021 – Agility, a leader in supply chain services, innovation and investment, has signed a memorandum of understanding (MoU) with Huawei, a leading provider of information and communications technology and infrastructure, to develop solutions for smart campus services at Agility Logistics Parks (ALP) facilities in Kuwait and other locations.

The agreement was exchanged by official representatives from both Agility and Huawei sides, and represents the first step towards equipping ALPs with centralized information and communications technologies (ICT) and services that can transform ALPs into smart industrial campuses.

Smart campuses use next-generation technologies such as Artificial Intelligence (AI) among others that will improve operational efficiency; enhance cybersecurity and physical security; and optimize movement of goods.

The agreement includes evaluation of technologies and systems that will help manage visitor management and vehicle entrances; create “smart streets” covered by WiFi; and improve safety at the ALP complexes.

ALP and Huawei teams will work to identify the requirements for solutions and innovations that will best optimize operations at each facility. ALP aims to increase management efficiency, decrease operational costs, present customers with a better service experience, and provide stronger security while generating less energy waste. Agility has commenced implementing these technologies at its logistics park in Mina Abdullah.

Nader Sakeen, CEO of ALP Kuwait and GCC, said:“Working with a leader in ICT technologies will give ALP an edge and enable us to provide customers with unparalleled services at our facilities. Agility’s goals are in line with the ‘New Kuwait’ 2035 vision, which aims to boost Kuwait’s industrial, logistics, crafts and workshops sectors by providing the right business landscape and ecosystem.”

“Sustainability is an integral part of our strategy and is an essential element in the design of our facilities. We design our facilities to help lower energy costs and reduce waste. We’re not only building for Kuwait and its industrial sector, but we’re also trying to build a more sustainable future for the next generation. We’re excited about the partnership with Huawei as we build future smart facilities in Kuwait and in the region,” Sakeen said.  

The Huawei Smart Campus solutions help make commercial and industrial complexes secure, comfortable, efficient, and green. The company’s technologies focus on digital security, smart property management, and smart offices.

Liam Zhao, CEO of Huawei Gulf North, said: “We are proud to have the opportunity to support a leading supply chain services company such as Agility with our world-class smart city solutions. As smart cities are a priority for Kuwait’s national agenda, Huawei is committed to doing all it can to support achieving the nation’s vision by empowering enterprises through our advanced solutions to further drive the country’s digital transformation journey.”

Agility Logistics Parks is a world leader in the design and construction of logistics parks and warehousing solutions. Logistics warehouses provide essential infrastructure required for both multinational companies and local businesses that need storage, distribution, packaging, processing and light manufacturing space.

ALPs offer ambient and air-conditioned warehousing; freezers and chillers; asphalted container-storage yards; and racked warehousing. In addition, Agility’s warehouses meet international environmental standards and feature eco-friendly construction materials, using energy-efficient roof and side-insulated panels, wind-driven roof fans, skylights for natural lighting, along with LED and energy-saving light fittings.

Mexico, Chile, Uruguay show strength in annual logistics rankings

BAAR, Switzerland – February 9, 2021 – Latin American countries broadly improved the competitiveness of their business climates in 2020, a surprise finding in the 2021 Agility Emerging Markets Logistics Index.

The Index, in its 12^th year, looks at the logistics strengths and competitiveness of the world’s 50 leading emerging markets countries. In the area of business fundamentals, only Chile at No.5 ranks near the top, but eight Latin economies moved up in that category in the 2021 Index: Uruguay (12), Mexico (20), Peru (24), Colombia (27), Ecuador (28), Brazil (36), Paraguay (40) and Bolivia (41).

In the overall annual Index, Mexico ranks as the world’s No. 7 emerging market. Chile is 12^th, and Brazil is 16^th. Outside of the top 20, the remaining Latin American nations are scattered: Uruguay (23); Peru (25); Colombia (27); Ecuador (35); Argentina (36); Paraguay (43); Bolivia (44) and Venezuela (50).

Argentina slipped five spots in the 2021 Index and was alone among Latin countries in experiencing a sharp drop in its business fundamentals ranking, where it fell three places. In addition to pandemic-driven economic damage, Argentina was plagued by many long-standing economic problems as it restructured nearly $65bn in debt owed to private investors. 

International logistics opportunity and potential is highest in Mexico, which ranks No. 3 in that area of the Index despite seeing significant challenges raised by the COVID-19 pandemic and doubts about the direction of its economic policies. The country’s economy was battered by a contraction of 9% in 2020, according to IMF projections.

Domestic logistics opportunity and potential are highest in Brazil at No. 8, down three places from last year. Uruguay rose three spots to No. 25 in domestic logistics as well.

Venezuela, engulfed in political and economic turmoil, ranks last among the 50 Index countries for international logistics opportunity and 49^th for business fundamentals.

The Index ranks 50 countries by factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors. The top 10 are: China, India, Indonesia, United Arab Emirates, Malaysia, Saudi Arabia, Mexico, Vietnam, Qatar, and Turkey.

China, India and Indonesia rank highest for domestic logistics; China, India and Mexico are top for international logistics; and UAE, Malaysia and Saudi Arabia have the best business fundamentals.

Along with the Index, Agility surveyed more than 1,200 supply chain professionals for their views on the disruption caused by the COVID-19 pandemic. A majority, 52%, say they do not foresee a global economic recovery until 2022 or beyond, which includes South America. Those surveyed believe Asia, North America and Europe will rebound this year.

2021 Index and Survey Highlights

• Even when they consider easing dependence on China, few companies plan to bring manufacturing jobs back home. Only 7.8% of industry executives say relocating production from China would mean reshoring to their home countries. Vietnam (19.6%), India (17.4%) and Indonesia (12.4%) are the leading choices for relocation, followed by Thailand (10.3%) and Malaysia (9.6%), according to those surveyed.

• While total cost is driving overall shifts in production supply chains, today low-cost labor is barely a consideration for emerging markets investment — with only 2.2% of industry executives saying it’s important. Executives say the most important factors are government bureaucracy and regulation (25.8%); infrastructure quality (14.1%); and supply of skilled labor (8.0%). As companies examine new production locations, they say their biggest concerns are inadequate infrastructure (14.5%) and additional cost (13.5%).

• Of the executives surveyed, 19.1% say 2020 sales decreased as a result of the pandemic. But only 9.4% say COVID-related employee safety measures have decreased efficiency.

• The sustainability movement has momentum. More than a quarter (26.9%) of executives surveyed say their companies are boosting implementation of environmentally sustainable practices in the wake of the pandemic. Another 45.2% say their plans are unchanged, suggesting they have no intention of retreating from sustainability commitments.

• The most competitive emerging markets are manufacturing powerhouses in Asia and the business-friendly economies in the Gulf region. From Asia, China (1), India (2), Indonesia (3), Malaysia (5) and Vietnam (8) made the top 10. Gulf nations United Arab Emirates (4), Saudi Arabia (6), Qatar (9) also ranked in the top 10. Mexico came in at 7^th; Turkey was No. 10.

• Nigeria improved its competitiveness more than any country in the 2021 Index, moving up five spots to No. 30, the highest climb for any market in Sub-Saharan Africa in the 12 years of the Index. Nigeria improved its relative position in all three areas of the Index: business climate, international logistics and domestic logistics.

• The countries improving their domestic logistics strengths the most were Malaysia, Nigeria, Vietnam, Iran, Uruguay, Myanmar and Cambodia. The biggest strides in international logistics came from Morocco, Ukraine, Kenya, Myanmar and Paraguay.

Transport Intelligence (Ti), a leading analysis and research firm for the logistics industry, compiled the Index.

John Manners-Bell, Chief Executive of Ti, says: “The strength of the Agility Emerging Markets Logistics Index has always been to differentiate between those emerging markets which demonstrate resilience in the face of adversity and those which are more fragile. This year is no exception. Although some – especially China and Vietnam – have been able to rebalance around domestic industrial and consumer demand, the majority are still highly dependent on international markets and investment. A lack of global demand, combined with the breakdown of air and sea logistics networks, has had severe consequences for these economies and societies. As the COVID crisis finally unwinds over the next two years, those most resilient will bounce back the fastest. Inevitably, those which have failed to embrace market, trade, governmental and social reforms will be hardest hit by the fallout from the pandemic.”

2021 Agility Emerging Markets Logistics Index: www.agility.com/2021Index

Kenya leaps in domestic logistics amid lackluster performance by Sub-Saharan Countries

BAAR, Switzerland – February 9, 2021 – Nigeria improved its business competiveness across three key indicators – business climate, international logistics and domestic logistics in the 2021 Agility Emerging Markets Logistics Index, while other emerging economies in Sub-Saharan Africa had a mixed performance.

Nigeria, Africa’s largest economy, climbs five spots to No. 30 in the annual 50-country Index. It jumps to No.10 for domestic logistics, up six spots from last year; moves up two spots to No. 37 in business fundamentals; and rises two places to No. 43 in strength of international logistics. The 2021 Index report notes that Nigeria has a growing and increasingly middle-class population, a vibrant and expanding online retail market, and a FinTech eco-system that is bringing formal banking services to millions in the country.

The Index, now in its 12^th year, ranks 50 countries by factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors. China, India and Indonesia topped the Index. Among countries in Sub-Saharan Africa, only South Africa made the top half of the overall Index, ranking No. 24. 

China, India and Indonesia top all countries for domestic logistics; China, India and Mexico are at the top for international logistics, with Kenya leaping five spots to No. 27. In the area of business fundamentals, three countries in Africa were in the top 25: South Africa at No. 22, Tanzania at No. 23 and Kenya No. 25. 

“Most Sub-Saharan economies should return to positive growth in 2021, even if they will not reach pre-pandemic levels of economic activity. One factor that could slow them is large levels of debt, which could make it difficult to fund economic stimulus and public health initiatives at the same time,” said Geoffrey White, CEO of Agility Africa. “In Nigeria, Kenya and several other key countries, infrastructure improvements and streamlined customs procedures are galvanizing growth. Progress by regional leaders could accelerate the Continent’s overall recovery.”

Along with the Index, Agility surveyed more than 1,200 supply chain professionals for their views on the disruption caused by the COVID-19 pandemic. A majority, 52%, say they do not foresee a global economic recovery until 2022 or beyond, despite an expectation that Asia, North America and Europe will rebound this year. They see Sub-Saharan Africa and Latin America as the last regions to climb back to pre-pandemic GDP levels.

2021 Index and Survey Highlights

• Even when they consider easing dependence on China, few companies plan to bring manufacturing jobs back home. Only 7.8% of industry executives surveyed say relocating production from China would mean reshoring to their home countries. Vietnam (19.6%), India (17.4%) and Indonesia (12.4%) are the leading choices for relocation, followed by Thailand (10.3%) and Malaysia (9.6%), according to those surveyed.

• While total cost is driving overall shifts in production supply chains, today low-cost labor is barely a consideration for emerging markets investment — with only 2.2% of industry executives saying it’s important. Executives say the most important factors are government bureaucracy and regulation (25.8%); infrastructure quality (14.1%); and supply of skilled labor (8.0%). As companies examine new production locations, they say their biggest concerns are inadequate infrastructure (14.5%) and additional cost (13.5%).

• Of the executives surveyed, 19.1% say 2020 sales decreased as a result of the pandemic. But only 9.4% say COVID-related employee safety measures have decreased efficiency.

• The sustainability movement has momentum. More than a quarter (26.9%) of executives surveyed say their companies are boosting implementation of environmentally sustainable practices in the wake of the pandemic. Another 45.2% say their plans are unchanged, suggesting they have no intention of retreating from sustainability commitments.

• In Latin America, Mexico is the strongest emerging market, ranking 7^th overall. Argentina (36) and Venezuela (50) continue to be plagued by chronic economic dysfunction. Notably, though, eight countries in Latin America improved their business fundamentals: Uruguay, Mexico, Peru, Colombia, Ecuador, Brazil, Paraguay, and Bolivia. The region’s best business climate is in Chile, which ranks 5^th out of 50 countries in that category.

• The countries improving their domestic logistics strengths the most were Malaysia, Nigeria, Vietnam, Iran, Uruguay, Myanmar and Cambodia. The biggest strides in international logistics came from Morocco, Ukraine, Kenya, Myanmar and Paraguay.

Transport Intelligence (Ti), a leading analysis and research firm for the logistics industry, compiled the Index.

John Manners-Bell, Chief Executive of Ti, says: “The strength of the Agility Emerging Markets Logistics Index has always been to differentiate between those emerging markets which demonstrate resilience in the face of adversity and those which are more fragile. This year is no exception. Although some – especially China and Vietnam – have been able to rebalance around domestic industrial and consumer demand, the majority are still highly dependent on international markets and investment. A lack of global demand, combined with the breakdown of air and sea logistics networks, has had severe consequences for these economies and societies. As the COVID crisis finally unwinds over the next two years, those most resilient will bounce back the fastest. Inevitably, those which have failed to embrace market, trade, governmental and social reforms will be hardest hit by the fallout from the pandemic.”

China, India, Indonesia, Malaysia among leaders in global logistics ranking

SINGAPORE – February 9, 2021 – Asia-Pacific nations lead all emerging market regions with China, India and Indonesia being the world’s top emerging markets in the 12^th annual Agility Emerging Markets Logistics Index, a broad gauge of competitiveness based on logistics strength and business fundamentals.

The Index ranks 50 countries by factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors. Among ASEAN countries, Vietnam climbs three spots to No. 8 overall. Indonesia (3), Malaysia (5) and Thailand (11) are strong; the Philippines rises one spot to No. 21.

China and Vietnam were virtually alone in the world in 2020, posting positive GDP growth for the year after being hit early by economic fallout from the COVID-19 pandemic.

Early 2020 supply disruptions in China prompted some to question whether it would experience an exodus of manufacturing by multi-nationals seeking to diversify sourcing and production. But the 1,200 logistics industry executives surveyed for Agility’s Index indicate little desire to uproot from China or other markets, preferring by a two-to-one margin to protect their supply chains by accelerating adoption of digital tools and technology (41.3%) as opposed to pursuing multi-shoring, near-shoring or reshoring strategies (21.9%).

Of those who would consider moving out of China, more respondents chose Vietnam as a preferred production hub than any other country (19.6%). Other Asian markets – India (17.4%), Indonesia (12.4%), Thailand (10.3%) and Malaysia – are the next leading choices. Only 7.8% of industry executives say relocating production from China would mean reshoring to their home countries.

Asia-Pacific is the region that more respondents believe will recover from the global pandemic by the end of 2021. Of those surveyed, 55.9% predict an Asia-Pacific economic recovery in 2021; 53.1% believe Europe will rebound.

“Asia Pacific experienced great turmoil in the beginning of 2020 due to the COVID-19 crisis, but it has rebounded strongly, led by the powerful performance of China and Vietnam. The region is on track for a full recovery this year,” says Andy Vargoczky, SVP of Sales & Marketing Asia-Pacific, Agility GIL. “India, Indonesia, Malaysia, Thailand and Vietnam continue to improve their supply chain infrastructure and capabilities, showing why they are leaders in domestic and international logistics.”

Across 50 countries, China, India and Indonesia rank highest in the Index for domestic logistics. China, India and Mexico are on top for international logistics with Vietnam 4^th, Indonesia 5^th, and Malaysia 7^th. UAE, Malaysia and Saudi Arabia have the best business fundamentals.

2021 Index and Survey Highlights

• While total cost is driving overall shifts in production supply chains, today low-cost labor is barely a consideration for emerging market investment — with only 2.2% of industry executives saying it’s important. Executives say the most important factors are government bureaucracy and regulation (25.8%); infrastructure quality (14.1%); and supply of skilled labor (8.0%). As companies examine new production locations, they say their biggest concerns are inadequate infrastructure (14.5%) and additional cost (13.5%).

• Of the executives surveyed, 19.1% say 2020 sales decreased as a result of the pandemic. But only 9.4% say COVID-related employee safety measures have decreased efficiency.

• The sustainability movement has momentum. More than a quarter (26.9%) of executives surveyed say their companies are boosting implementation of environmentally sustainable practices in the wake of the pandemic. Another 45.2% say their plans are unchanged, suggesting they have no intention of retreating from sustainability commitments.

• The most competitive emerging markets are manufacturing powerhouses in Asia and the business-friendly economies in the Gulf region. From Asia, China (1), India (2), Indonesia (3), Malaysia (5) and Vietnam (8) made the top 10. Gulf nations United Arab Emirates (4), Saudi Arabia (6), Qatar (9) also ranked in the top 10. Mexico came in at 7^th; Turkey was No. 10.

• In Latin America, Mexico is the strongest emerging market, ranking 7^th overall. Argentina (36) and Venezuela (50) continue to be plagued by chronic economic dysfunction. Notably, though, eight countries in Latin America improved their business fundamentals: Uruguay, Mexico, Peru, Colombia, Ecuador, Brazil, Paraguay, and Bolivia. The region’s best business climate is in Chile, which ranks 5^th out of 50 countries in that category.

• Nigeria improved its competitiveness more than any country in the 2021 Index, moving up five spots to No. 30, the highest climb for any market in Sub-Saharan Africa in the 12 years of the Index. Nigeria improved its relative position in all three areas of the Index: business climate, international logistics and domestic logistics.

• The countries improving their domestic logistics strengths the most were Malaysia, Nigeria, Vietnam, Iran, Uruguay, Myanmar and Cambodia. The biggest strides in international logistics came from Morocco, Ukraine, Kenya, Myanmar and Paraguay.

Transport Intelligence (Ti), a leading analysis and research firm for the logistics industry, compiled the Index.

John Manners-Bell, Chief Executive of Ti, says: “The strength of the Agility Emerging Markets Logistics Index has always been to differentiate between those emerging markets which demonstrate resilience in the face of adversity and those which are more fragile. This year is no exception. Although some – especially China and Vietnam – have been able to rebalance around domestic industrial and consumer demand, the majority are still highly dependent on international markets and investment. A lack of global demand, combined with the breakdown of air and sea logistics networks, has had severe consequences for these economies and societies. As the COVID crisis finally unwinds over the next two years, those most resilient will bounce back the fastest. Inevitably, those which have failed to embrace market, trade, governmental and social reforms will be hardest hit by the fallout from the pandemic.”

Gulf economies offer emerging markets’ best business conditions

DUBAI – February 9, 2020 – The United Arab Emirates, Saudi Arabia and Qatar rank among the world’s most competitive emerging markets, and Gulf countries as a group offer the best emerging-economy business climates, according to the annual Agility Emerging Markets Logistics Index.

The Index, now in its 12^th year, ranks 50 countries by factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors. China, India and Indonesia topped the Index, while three Gulf countries made the top 10: UAE (4), Saudi Arabia (6) and Qatar (9).

In the area of business fundamentals, Gulf countries dominated the top spots. UAE was No. 1, followed by Saudi Arabia (3), Qatar (4), Bahrain (7), Oman (8) and Kuwait (11). Nearby Jordan was 10^th. China, India and Indonesia rank highest for domestic logistics; China, India and Mexico are at the top for international logistics.

“Gulf countries are pushing hard to diversify and integrate their economies by developing world-class infrastructure and creating fair, transparent conditions for business,” says Elias Monem, Agility Global Integrated Logistics (GIL) CEO for Middle East & Africa. “Good infrastructure and stable business conditions are areas of huge competitive advantage for the Gulf region. They will be key to recovering from the economic downturn brought on by the pandemic.”

The regional Gulf economy could get a boost as a result of the diplomatic breakthrough that ended Saudi Arabia’s three-year economic blockade of neighboring Qatar in late 2020. That could lead to tighter integration in a region where cross-border trade, trucking and e-commerce are growing dramatically.

Along with the Index, Agility surveyed more than 1,200 supply chain professionals for their views on the disruption caused by the COVID-19 pandemic. Of the executives surveyed, 44.7% see a Middle East/North Africa recovery in 2021; 38.9% say a recovery for the region won’t take place until 2022-2024. A majority expect Asia, North America and Europe to rebound this year.

2021 Index and Survey Highlights

• Even when they consider easing dependence on China, few companies plan to bring manufacturing jobs back home. Only 7.8% of industry executives surveyed say relocating production from China would mean reshoring to their home countries. Vietnam (19.6%), India (17.4%) and Indonesia (12.4%) are the leading choices for relocation, followed by Thailand (10.3%) and Malaysia (9.6%), according to those surveyed.

• While total cost is driving overall shifts in production supply chains, today low-cost labor is barely a consideration for emerging markets investment — with only 2.2% of industry executive’s saying it’s important. Executives say the most important factors are government bureaucracy and regulation (25.8%); infrastructure quality (14.1%); and supply of skilled labor (8.0%). As companies examine new production locations, they say their biggest concerns are inadequate infrastructure (14.5%) and additional cost (13.5%).

• Of the executives surveyed, 19.1% say 2020 sales decreased as a result of the pandemic. But only 9.4% say COVID-related employee safety measures have decreased efficiency.

• The sustainability movement has momentum. More than a quarter (26.9%) of executives surveyed say their companies are boosting implementation of environmentally sustainable practices in the wake of the pandemic. Another 45.2% say their plans are unchanged, suggesting they have no intention of retreating from sustainability commitments.

• In Latin America, Mexico is the strongest emerging market, ranking 7^th overall. Argentina           (36) and Venezuela (50) continue to be plagued by chronic economic dysfunction. Notably, though, eight countries in Latin America improved their business fundamentals: Uruguay, Mexico, Peru, Colombia, Ecuador, Brazil, Paraguay, and Bolivia. The region’s best business climate is in Chile, which ranks 5^th out of 50 countries in that category.

• Nigeria improved its competitiveness more than any country in the 2021 Index, moving up five spots to No. 30, the highest climb for any market in Sub-Saharan Africa in the 12 years of the Index. Nigeria improved its relative position in all three areas of the Index: business climate, international logistics and domestic logistics.

• The countries improving their domestic logistics strengths the most were Malaysia, Nigeria, Vietnam, Iran, Uruguay, Myanmar and Cambodia. The biggest strides in international logistics came from Morocco, Ukraine, Kenya, Myanmar and Paraguay.

Transport Intelligence (Ti), a leading analysis and research firm for the logistics industry, compiled the Index.

John Manners-Bell, Chief Executive of Ti, says: “The strength of the Agility Emerging Markets Logistics Index has always been to differentiate between those emerging markets which demonstrate resilience in the face of adversity and those which are more fragile. This year is no exception. Although some – especially China and Vietnam – have been able to rebalance around domestic industrial and consumer demand, the majority are still highly dependent on international markets and investment. A lack of global demand, combined with the breakdown of air and sea logistics networks, has had severe consequences for these economies and societies. As the COVID crisis finally unwinds over the next two years, those most resilient will bounce back the fastest. Inevitably, those which have failed to embrace market, trade, governmental and social reforms will be hardest hit by the fallout from the pandemic.”

2021 Agility Emerging Markets Logistics Index: www.agility.com/2021index