Maersk Kanoo UAE and Dubai South sign agreement for new 162,000sqft W&D facility

Following the inauguration of the first W&D facility (108,000sqft) in Dubai at JAFZA earlier this year, Maersk will more than double its total footprint in the UAE

Maersk Kanoo UAE has signed an agreement with Dubai South for a new warehousing and distribution (W&D) facility in Dubai. The 162,000sqft Maersk Integrated Logistics Centre DWC facility will be located in the Dubai South Logistics District and will have a capacity to cater for 15,000 pallet positions and 10,000 bin locations. It will also serve as an e-fulfillment centre.

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.

“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,” Cook said.

In April 2022, Dubai South inked a deal to develop a premium golf community project.

“Upon carefully studying different possibilities, we zeroed in on Dubai South for our new fulfillment centre considering its strategic location connected to Al Maktoum International Airport (DWC) and the mainline port and hub of Jebel 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,” he added.

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 land-side transportation, the statement said.

Following the inauguration of the first W&D facility (108,000sqft) in Dubai at JAFZA earlier this year in March, Maersk will more than double its total footprint in the UAE with the new fulfillment centre, it added.

In July, Dubai South Properties launched South Bay in the Residential District of the freezone.

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.”

Ahmad added, “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 fulfill different customer needs, including that of a fulfillment centre for end-to-end e-commerce solutions, the statement noted.

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, it concluded.

In July, the world’s largest vertical farm opened in Dubai near the Al Maktoum International Airport in Dubai South.

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