Dnata and PWC Logistics announce air cargo joint venture
A new company has been formed to provide inter-airport logistics services. Dnata, the Dubai-based air cargo and airport services provider, and PWC Logistics, a global provider of end-to-end supply chain solutions, today announced the formation of a joint venture company to cater to the growing demand for inter-airport logistics solutions in the gulf region.
Gary Chapman, President Dnata and Associated Companies, today signed the multi-million UAE dirham agreement with Essa Al-Saleh, Managing Director, Corporate Development of PWC Logistics, to form Dnata-PWC Airport Logistics LLC. Dnata and PWC Logistics will each own a 50 per cent share in the new joint venture company.
Operating from the Dubai Cargo Village, Dnata-PWC Airport Logistics will offer air cargo operators with road feeder service between airports in the gulf region. This service will provide airlines with a wider choice of off-line routings, and quality service at competitive rates.
Gary Chapman, President of Dnata said: “This joint venture is a strategic move to establish an air cargo logistics network within the GCC and Middle East. It expands on Dnata Cargo’s existing road feeder service in the UAE, and allows us to tap on the expertise and network of our partner PWC Logistics.”
Mr. Chapman added: “We are bullish on the long term prospects of air cargo road transportation in the region, and this joint venture puts us in a good position to contribute to, and benefit from the growth of this market segment. We look forward to providing our customers with an expanded choice of offline cargo routings, while continuing to offer them a competitive product.”
Mr. Al-Saleh said: “This venture is an excellent strategic fit for both partners, and will expand our transportation offering in the Middle East. We aim to grow the air cargo road transport market in this region. And to do so, we’ve invested in state-of-the-art IT solutions and the latest specialized equipment to ensure our customers receive consistent, high-quality service.”
Dnata-PWC Airport Logistics will be fully operational in the third quarter of 2005. The company will initially focus its operations on the GCC countries, Lebanon and Jordan, but has future plans to expand throughout and beyond the Middle East.
The joint venture will be managed by PWC and chaired by Dnata, with both organizations committing existing assets to the venture including expertise, manpower, IT systems, equipment and vehicles. For instance, the operation will benefit from PWC Logistics’ proprietary MicroTransport vehicle tracking system that enables real-time tracking of vehicles and their contents en route to their destinations.
In recent years, the Middle East has seen remarkable growth in air cargo traffic, with Dubai at the heart of the action. To meet fast-growing infrastructural demand, Dubai has embarked on aggressive expansion plans to further develop the Dubai Cargo Village at Dubai airport, and will construct an entirely new airport primarily for cargo operations at Jebel Ali, next to the Jebel Ali Free Zone.-ends