Tag Archive for: logistics

Navigating the Currents of Change: Insights from the Helm of P&O Ferrymasters

Oscar Rodenas, General Manager for Spain – P&O Ferrymasters

This month we are launching our “Journeys in Learning” series, during which we will be interviewing key members of our community on topics that are near and dear to us. For this first issue, we have interviewed Mr. Oscar Ródenas Ujaque, the General Manager for Spain of P&O Ferrymasters.

Combining Teaching and Professional Practice

Q1: Reflecting on your extensive experience in the logistics sector, how does this enrich your role as a teacher at TecnoCampus, and conversely, how does teaching inform your professional practice as a logistics manager at P&O Ferrymasters?

The integration of theoretical knowledge with practical application benefits both students and educators. Students gain foresight into their career goals, and educators solidify and expand upon these aspects, infusing their teaching with insights drawn from actual industry experience. This dual approach, particularly for those of us with substantial sector experience, allows us to share real-world scenarios in the classroom, bridging gaps that traditional academic teaching might leave.

The Role of English in Logistics

Q2: With the introduction of teaching Warehouse Management in English, can you discuss the importance of English proficiency for logistics and transportation professionals, especially in your role with the European Management Team at DP World?

Mastery of English is indeed vital, given that it is the lingua franca of business. Ensuring fluency in English is crucial if one aspires to work internationally or maintain cross-border professional relationships. For me, teaching in English is a step towards normalizing its use as a primary means of communication that must be navigated with ease and precision. Professionally, staying current with the logistics market and educational offerings, like the European School’s innovative programs on sustainable transportation, is imperative. Initiatives like the ‘Motorways of the Sea’ demonstrate logistics’ potential to be eco-friendly and innovative, pushing the industry forward alongside societal advancements in digitalization and sustainability.

Hiring for the Logistics Sector

Q3: In your capacity as a hiring manager at a company renowned for its fast-paced logistics operations, what key competencies do you seek in candidates, and do you find that today’s young applicants meet these criteria?

The hiring landscape has indeed shifted; we look beyond impressive resumes and training, which we now consider a given. Instead, we seek individuals who bring unique talents, can relate well to others, and enhance their work environment. We expect newcomers to challenge the status quo with innovative, efficient, and sustainable logistics solutions.

The Attraction and Challenges of the Logistics Sector

Q4: How would you portray the dual nature of the logistics sector, with its exhilarating pace yet demanding environment, to the younger generation?

The logistics sector is challenging and unyielding, requiring professionals to be agile and perpetually learning. It pushes individuals out of their comfort zones and demands their utmost dedication. Simultaneously, it offers an invigorating career—never dull, always rewarding—making it compelling despite its demands. As they say in logistics, once you’re in, you’re hooked, due to its captivating nature. One must be ready to navigate its intensity.

Impact of E-commerce on the Logistics Sector

Q5: Considering the transformation brought by e-commerce to logistics, how do you envision its future development, and what advice would you offer aspiring professionals?

E-commerce, having surged during the pandemic, has since stabilized to a steady growth trajectory. It remains a pivotal force driving logistics innovation, increasingly intertwined with digital technologies and AI. Looking forward, students should remain abreast of industry trends and developments, perhaps through reputable logistics publications.

Experience as Accompanying Professor in the Escola’s MOST Course

Q6: Having served as an accompanying professor on the MOST course by Escola Europea, could you share your experience and the main insights you’ve gained? Would you endorse this experience for your peers?

Concluding with my utmost endorsement, the course was exceptional in every facet. From a professional standpoint, the high-caliber presentations and up-to-date content were impressive. The practical exercises and case study methodology brought a high level of engagement and inspiration for all participants. Witnessing the dedication of students working into the night on case solutions reaffirmed my confidence in the capabilities of the upcoming generations. Beyond the professional realm, the human connections forged during this course were invaluable and deeply enriching.

The Escola Europea consolidated as an Accredited Agent for Internationalization

The Escola Europea – Intermodal Transport has been accredited as an Agent for Internationalization Support by ACCIÓ, the Agency for Business Competitiveness of the Generalitat de Catalunya. Belonging to the Catalan Ministry of Business and Labour, it is the public organisation working to contribute to the transformation of Catalan companies.

The Escola is considered a key element in the country’s internationalization ecosystem, as it trains professionals in the field of logistics – a necessity in attaining talent for Catalan companies. As a result, as the Agency’s Internationalization Support Agent, it will be able to collaborate in the design and implementation of public policies in this area.

Having accredited Internationalization Support Agents allows for the creation of a space for debate on globalised support policies, defining a national internationalization strategy, promoting a systemic approach to collaboration among stakeholders, and fostering public-private partnerships through an open, transparent, co-responsible, participatory, and concerted system.

This accreditation falls within the call for the year 2023 for the accreditation of Agents for Internationalization Support for the period 2020-2024. The resolution confirms that the Escola Europea – Intermodal Transport meets all of the requirements established for training entities.

Currently, there are about thirty accredited entities in various categories (advisory, promotion, training, and financing) that participate in plenary meetings. Additionally, through the Executive Council of Agents led by 7 entities, various thematic work groups have been created where interested organizations can participate.

With this recognition, the Escola Europea – Intermodal Transport reaffirms its mission to provide quality training and support to the internationalization of the Catalan business fabric, in close collaboration with ACCIÓ.

Barcelona Port’s Training and Employment Working Group encourages training for road transport

New studies must help companies recruit people trained in the fields of driving and road transport management.

On the 29th of September, in the framework of the Working Group on ‘Training and Employment’ of the Port Authority of Barcelona, an information day has been held regarding the new courses that have launched during the current academic year 2022-23 at the Institute of Logistics of Barcelona and the Institute of the Virgin of the Mercè, as part of the Consortium of Education of Barcelona.

These new studies must help companies recruit people trained in the fields of driving and road transport management.

The road transport sector, through ATEC and SINTRAPORT – the sectoral associations in Barcelona – has identified a lack of specific professional profiles for the development of the economic activity of transport companies. The sector is suffering from the ageing of its workers, especially those engaged in driving, and has detected the lack of profiles as urgent as that of traffic bottlenecks.

In order to combat this situation and attract talent among transport companies in Barcelona, the Barcelona Education Consortium has launched a comprehensive strategy to respond to the situation:

  • The introduction of a new professional training cycle on driving vehicles, to train future lorry drivers.
  • The creation of an integral training center in logistics: the Barcelona Logistics Institute, to prepare courses based on transport management profiles.

It has been noted that throughout 2021 approximately 1000 new vocational training jobs were created from the 11,000 existing ones, and to which 20,000 applications were received. This is in addition to the high employability of students finishing the Dual Training programmes which showed a 70-80% recruitment rate in the first year of completion of the studies, in fields directly related to the studies completed.

In the light of these initiatives, the ‘Training and Employment’ Working Group of the Port of Barcelona Governing Council has organised a day to share the strategy and formative offer initiated by this academic course with the transport community, with the aim of creating synergies between companies and training centres through training projects, dual FP practices and demand-fitting talent recruitment.

During the event Eduard Rodés, the chairman of the Working Group and director of the Escola Europea – Intermodal Transport, expressed the needs of the sector. He was accompanied by Oscar González, the president of ATEC and Jorge Fernández, the president of SINTRAPORT,.

In response, Josep Ramon Domingo, from the Directorate of Post-Compulsory and Special Regime Education of the Barcelona Consortium, Alex Salinas, the deputy director of the Institute of the Virgin of the Mercè and Mercedes García, teacher and head of studies at the ILB have explained the strategy, content and ways of close collaboration between centers and companies.

Finally, Francesc Bonada, Head of Organization and Sustainability of the Port of Barcelona and Eduard Rodés, have closed the event by recalling the importance of collaboration with the business fabric to know the occupational needs and be able to adapt the training cycles to the current trends of the business community.

Click&Cargo ERP

ClickandCargo Simulator for Training of Logistic Operations

Written by - Valentina Salinas, Product Manager clickandcargo.com

Written by – Valentina Salinas, Product Manager clickandcargo.com

ClickandCargo has been in the business less than other software companies in the Spanish market but has been able to develop an Enterprise Resource Planning (ERP) platform that is able to compete fairly with software of similar functionalities. This why it was chosen by the EU-funded YEP MED project to act as the platform to support digital training of new professionals in the logistic sector.

The importance of information flow

A freight forwarder’s core business basically consists of handling import and export operations for their clients. The most important asset they have is the control of the information flow, as they sit in the middle of the logistics chain as the architects of import-export operations.

With e-commerce flooding international trade in recent years, and the ever-increasing demand for faster and more efficient shipments, digital information systems are a must. And since they are so fundamental, it is critical that new professionals understand how to operate within them. It is under this line of thought that ClickandCargo came into play.

Click&Cargo ERP

The ERP explained

What is the simulated setup

In the YEP MED courses, students become employees of PlayForwarding, a freight forwarding company operating in YEP MED’s logistic virtual ecosystem. With branches across the Mediterranean, students from each country handle their local (virtual) client base, planning and managing door-to-door logistic operations.

Playforwarding’s ERP is ClickandCargo, from which students create commercial offers, handle the shipment records and execute the entire documental flow needed for import and export operations.

The ERP is configured just as if it were a real company. All third parties involved in the operations -including clients, agents, shipping, etc., are pre-registered in the system, alongside ports and other data to replicate real-life transport operations. Event though each branch operates separately, they have the ability to share basic information about clients. Default quality control rules apply just as in real life, so students cannot leave any required fields blank to move forward with an operation.

ClickandCargo simulates the integration of the ERP with YEP MED’s virtual Port Community System, that serves as the communication point with shipping companies and shipping agencies for the according documental needs. The environment of ClickandCargo also simulates e-mail communication of PlayForwarding with customs agencies and transport companies. This simulation allows students to receive customs clearances and container information from these companies – as they would be in real life.

Operations: From commercial to invoicing

Through the ClickandCargo platform, students can play different roles during the training. They are first asked to execute commercial tasks by creating a quotation directly in the ERP system. For this, the ERP has preloaded tariffs that allow the students to get familiarised with pricing and commercial tasks. How do you charge for sea freight? You are most likely to understand all the pricing concepts after quoting in the simulator.

After having an accepted quotation, students get their hands on handling all the documentation flows needed for a sea-freight operation. Using the different simulated communication channels (Port Community Systems (PCS), e-mail), students create and send the booking requests, transport orders, customs clearance requests, shipping instructions and House Bills of Lading (B/L). They get the chance to work both with import and export operations by sharing export shipment files with their branches at the destination ports.

YEP MED ERP Screenshot

YEP MED ERP Screenshot

In the near future we hope to be able to close the operations cycle by allowing the students to finally invoice the clients directly from ClickandCargo, make the final invoice reconciliations and close the records. This administrative work is an important step to understand all aspects of the freight forwarding business, and it will soon form part of the training.

Shortening the learning curve and setting precedents in good practices

The ERP simulator that ClickandCargo has put in place for this project gives an unprecedented value to the training of future professionals in the logistic business overall. It allows students to get their hands on a real software used for freight management and get the “learn-by-doing” experience. This experience serves as the initial training they would get in their first job, thus significantly shortening the learning curve.

Finally, what we as ClickandCargo find most exciting in this project is the great opportunity to create good practices in the execution of freight operations. The virtual logistic ecosystem created in under YEP MED is an important test for new functionalities, integrations and technologies before they go into real production. ClickandCargo sits in the middle of this virtual digital logistic chain, and we will work further to take this training to excellence.

YEP MED VT01 - Maritime Visit

Barcelona: EU-funded YEP MED trains future professionals in the port management and logistics sector

The training, carried out by the Escola Europea saw the participation of more than 50 students from Institut les Salines in el Prat de Llobregat

This week the first course of the YEP MED project’s vocational training series, funded by the EU’s ENI CBC Med Programme, came to a close in Barcelona. The week-long course, initially scheduled to take place virtually, took a hybrid format when it became possible to host some lectures in the Escola’s classroom in person – the Aula dels Estels – and to physically visit the Port of Barcelona. The objective of the course was to provide first-year students of vocational training in International Trade and those studying Transport and Logistics at the Institut Les Salines in Barcelona with first-hand knowledge of the Port of Barcelona, its infrastructures, logistics equipment and operations, as well as its environmental management and its digital sphere. The course also gave the companies represented by the sector associations in the training the opportunity to showcase the characteristics of their activities and the professional profiles they need to develop appropriately, whilst at the same time encouraging an open dialogue between the centres and the companies and promoting the creation of dual-training opportunities.

The theoretical contents of the course focused on Port Management characteristics, introduced Port-Logistics Community Actors (Maritime Customs, Customs Brokers, Freight Forwarders, Ship Agents, Stevedores, Border Inspection Post) and touched on environmental policies and characteristics, as well as the emergence of Smart Ports. To complement the theoretical training, workshops were planned which included an in-person maritime visit to the Port of Barcelona, , a workshop on customs procedures, a workshop on freight forwarders operations, as well as a FunTraders session, an international trade simulation game. The training was completed with a Kahoot test designed to test the knowledge gained by the course participants during the week. The classes were given by professionals from the Port of Barcelona, the Maritime Customs Administration in the Port of Barcelona, the Association of Customs Agents in Barcelona, the Association of International Freight Forwarders, the Shipping Agens Association in Barcelona and the Escola Europea.

“After one exciting week, I feel very lucky that I took part in the YEP MED program in his first edition, held by the Escola Europea Intermodal Transport”, attested Aymen Kadri, a student from the Institut Les Salines, upon completing the training. “Despite the newness of this project, we as students were well-surprised by the high level of organisation and efficient coordination set by the Escola Europea team and the professionals of the logistics field in Barcelona. As for myself it was a real breakthrough in widening my knowledge.

From day one, it was noticeable how:

  • Enthusiastic these executives were about their domain
  • Passionate about transmitting the data to us without leaving any doubt or confusion
  • Impressive they were in combining theory with practice.

For the practical side, we had a great chance to find out the various operations from the departments of the Barcelona Port, and through Marta Miquel we received attentive guidance. Innovation signs were obvious, encouraging for new development perspectives.”

Foto Aula dels Estels - YEP MED course

The Vocational Training 1 course is the first part of a 3-training course methodology developed under the project, designed to prepare the students and young adults for transport and logistic professions in the Mediterranean region. As part of the later training, the participants will be able to simulate certain real-life operations in a digital twin of a port community created for the project. This kind of digital and practical experience will help prepare the students for any challenges that they may face in real working environments.

About YEP MED

The YEP MED project, led by the Escola Europea – Intermodal Transport, aims to develop port-logistics training and vocational (TVET) resources adapted to sector needs to strengthen youth employability; increase and upgrade local employment opportunities through the creation of real dual-learning programmes with job placements, strengthening the role of SME’s operating in the port ecosystems for future employment creation; and set up collaborative national and transnational partnerships between port-logistics associations, operators, SMEs, training centres and VET providers, whilst introducing a PPP co-management process.

The project counts on the participation of partners from Spain, Italy, France, Tunisia, Lebanon, Egypt and Jordan. Throughout 30 months, the partners and associates of the project will implement tools to achieve the main objectives of this initiatives, in the short, medium and long terms. For a full list of partners of the YEP MED project, you can go to the project’s website. As associated entities, MEDPorts association and Consell Valencià de la Joventut will also join the project. The project will receive 2.9 M€ (90% EU Contribution) in funding over its lifetime

For more information on the project you can contact Concha Palacios from the project office at concha.palacios@portdebarcelona.cat.

ITS Inauguration - October 2020

G. Caboto Foundation’s Technical Course in Integrated Logistics Management and Shipping Processes to take place

In early October, the ITS G. Caboto’s Foundation has opened the registrations for the Diploma in the Management of Integrated Logistics and Shipping Processes. Following two weeks of an open application period, in the end 29 students were accepted. The majority came from the Lazio region, but with some students traveling from the Liguria and Puglia regions, and some from Sicily.

The applicants will attend a 24-month long course and discover the logistics processes and maritime operations that take place in the Port of Civitavecchia. The course has as an objective to train students in the management of logistical activities in the port-centric supply chain market segment. The graduates will learn to manage shipment processes and any other related logistic activities (warehouse, fittings, intermodal transport, order cycles, etc.) which circle around the management of goods that are imported or exported through a port. They will also analyse the relationship between the port and the unloading or loading area. Moreover, this year particular attention and relevance will be given to digital skills in the application field – as digitisation and the internet of things become more and more important in the transport sector. The training will thus provide the students with the skills for the use of popular application software, aids, equipment and digital tools, and will familiarise them with any technological advances to make them prepared for employment. Each student will also carry out an internship period of 800 hours, in addition to study visits (if they are deemed safe in light of the current global health crisis) and project work at partner companies. Participation in supplementary projects promoted by the project partners will be encouraged as well.

The diploma kicked off with the official inauguration ceremony on the 30th of October 2020. Alongside the candidates and teachers, the ceremony was attended by Francesco Maria di Majo and Luca Lupi from the Port Authority of Civitavecchia; Eduard Rodés and Marco Muci from the Escola Europea – Intermodal Transport; and Clemente Borrelli from the G. Caboto Foundation.

The Escola’s Formati al Porto and MOST Italy courses will form part of the 24 month training. For more information about Formati al Porto, you can visit the Escola’s website.

Digital highway

Digitisation in logistics and e-documents… advantage or cost?

The current crisis is bringing with it a lot of changes to our industry. For this quarter’s Blue Innovation article, we have caught up with Xavier Lluch, an expert in cost analysis, a veteran of the logistics industry and a regular teacher in our courses, to share with us his thoughts on the emerging trend of e-documents and electronic transport processes. Check out the full article below: 

 

Xavier Lluch

Xavier Lluch i Oms
Professor of the Escola Europea – Intermodal transport
Consultant for Spain for Pionira BV, experts in generic solutions for digital document signing.

The digital revolution is here and was here long before the virus crisis. Perhaps the current crisis allows us to rethink the way we have approached logistics and transport activities so far. The opportunities offered by the new ITC technologies are already changing the way we do business. In the transportation and logistics industry, we now have powerful tools at our disposal to improve the competitiveness of our companies and the range of services offered.

Nevertheless, the implementation of these technologies could be faster than it is currently. For many reasons, but especially because it requires a different approach to the way we do business, a profound cultural change among managers and employees in this sector is necessary. Some business models may make way for new ones.

Are we – are you – ready to take on this challenge? The answer to the question can affect the design of the businesses on offer.

The use of e-documents requires the use of a third party – service providers who are replacing paper in the retention of information and signatures in transport documents with electronic counterparts and with great benefits. You can enjoy other benefits such as attaching images, videos, or other documents with a simple click, avoiding physical contact at the time of signatures, geolocating events… among others. This will save some money, especially from the administration side of any business dealings!

In intermodal transport, it will be possible to use a single document between the first shipper and his consignee, avoiding the traditional ways of having documents physically transferred between different carriers.

But this is only the beginning because when you start using e-documents, you will quickly stop talking about “documents” and instead use the expression “datasets” or “transport datasets”. When you have this information structured in a database that is accessible online and in real-time, there will be a full portfolio of new applications and benefits available, and from this point on you will start not only to save money but to design a new approach to your service concept.

Over the past three years, I have helped a Belgian company, PIONIRA BV, to introduce their solution for digitally signing transport documents in the Spanish market. On their web page (www.pionira.be), you will not find the usual software solutions for printing transport documents, but information about a company that can “offer a generic solution for digitally signing documents”.

It is important to realise the change in the way the company presents their offer because this is much more than a simple reformulation. Pionira offers a new service to connect with existing ERP solutions, linked to the many improvements that digitisation should bring to the logistics and transportation activity.

The solutions exist, they are tested, they do not require any investment and they can easily be connected to other existing apps.

The legal framework is clear for the use of electronic documents in transport. International treaties and national legislation have adapted their processes with a goal to facilitate and promote the use of electronic documents. This past August, the European Parliament approved a new rule that legalised them for all EU countries.

The approval of this European regulation sets the basis for the wide implementation of digital documents across both private and public sectors, by establishing the data and messaging standards as well as the conditions for the interoperability among the different players. In the short term it becomes mandatory for the public sector and voluntary for the private operators, and in a few years it might become mandatory for all. For more information you can check out the Regulation EU 2020/1056 of the European Parliament and of the Council on electronic freight transport information.

Significant companies (shippers, transporters) in Europe are already implementing e-transport documents. Some of the public administrations, mainly in the Benelux countries, have already been active in promoting the benefits of such technologies.

More recently, the main stakeholder’s associations in Spain have reached a compromise, with the acknowledgement of the Ministry of Transport, to promote the use of e-documents. The promotional campaign is expected to continue through September.

Digitisation is in the forefront of the intentions of many private and public policies, especially in the backdrop of the COVID-19 crisis, as e-signing transport documents foregoes any physical contact and therefore minimises the risk of virus transmission. A few days ago “The Economist” published an article titled “Covid-19 stimulates the digitisation of the government” – further highlighting the impact of the changes kickstarted by the pandemic.

We must recognise that one of the obstacles is the lack of a “digital culture” among many of us. The earlier we shorten that gap, the better it will be for the efficiency of our companies and the possibility for all to catch up with the coming changes in the transportation industry across the globe.

Nanosatellites to fuel the Internet of Things

In the past issues of our #BlueInnovation series we have largely focused on any new developments taking place on land and at sea – Smart Seals, Smart Containers, Digital Twins, etc. What about Space? Is there a future for the logistics and transport sector that involves space technologies?

This month we have caught up with Jaume Sanpera, the founder and CEO of Sateliot, to talk about his views and predictions about the journey into the future for transport.

Journey into the future of logistics and freight transport

Jaume Sanpera

By: Jaume Sanpera, Founder and CEO of Sateliot

What if the real revolution in the logistics and freight sector came directly from space? That is what Sateliot, the company that will launch the first constellation of nanosatellites to democratize the already known Internet of Things or IOT, is proposing.

In the 21st century, we are entering the era of the totally connected. However, there is still a long way to go to make large-scale connection global and affordable for all. In fact, it is estimated that only 10% of the earth’s surface has mobile coverage, while the remaining 90% is a veritable connectivity desert.

However, what may seem like a whole futuristic movie is getting closer. Specifically, up to 100 nanosatellites weighing about 12 kilograms will make this possible, orbiting some 500 kilometres from the Earth and functioning as cell towers from above offering 100% coverage of the territory and reaching areas where terrestrial networks cannot.

And, although when we talk about the IoT and high technology we usually think of the most cutting-edge and disruptive sectors, the truth is that others that are more traditional but no less developed, such as logistics or goods transport, are likely to reap the most benefits, since the commitment to innovation and digital transformation will allow for an improvement in the operations of infrastructures, warehouses or transport fleets. All of this at a time when ecommerce is booming and requires greasing the supply chain to avoid stock-outs, ensuring that consumers get what they want, when they want it.

Globally, around 20 billion devices are connected to the Internet of Things

What’s more, although the IoT is not new to logistics, with 20 billion connected devices already in use around the world, its real revolution has only just begun. It is estimated that by 2025, shipping companies alone will spend an average of more than $2 million annually on IoT solutions. A practical and simple example of this investment will be smart containers.

Sateliot will make it possible to extend the IOT to the whole territory, so sensors can be installed inside and outside the containers to collect an infinite amount of data during their transit, such as the humidity of the cargo, its temperature, oxygen levels, whether or not there is smoke or even attempts to open them. This data could then be analysed by the company sending the goods, by any intermediaries or by the crew of the ship the cargo is travelling on.

Through this it will be possible to remotely act on reefer containers or warn the crew of the need to hypothetically repair or replace them, identify theft attempts during seal manipulations or put out fires when the presence of smoke is detected, among other multiple actions.

This technology will help make possible exhaustive tracking of the containers, both en route and during possible losses into the sea. This will significantly reduce costs by minimizing the premiums of insurance policies, including theft, looting, fire or heat damage, which are usually very high – it is estimated that 70% of companies that adopt IoT solutions have considered this expense as one of the reasons for adopting this technology. It also will help prevent the loss of perishable goods due to failures of the cooling engine or through helping locate and recover containers that have fallen into the water or been lost in other ports by mistake.

Transport workers will increasingly rely on the information taken from the Internet of Things in their operations – where nanosatellites will come in handy

It is not just containers that will benefit. Ships will be able to use the IoT for the maintenance of their machinery, detection of breakdowns before they occur, using its solutions to monitor fuel consumption and thus adjust it more efficiently, all of which will help result in significant decreases in costs.

In short, monitoring the logistics and transport of goods at any time and place and at affordable prices will be key to improving processes, making them more efficient and cost effective. It will also help increase the autonomy of the devices and help get accurate predictions of demand, all of which will allow for greater capacity at lower costs, resulting in profitability increases across all companies in the sector.

The journey into the future of logistics, which is becoming more intelligent every day, has already begun. Nanosatellites will be on board, drawing the road map to follow.

#DidYouKnow: Spotlight on Algeria

Mohamed Lazhar Benaissa

Mohamed Lazhar Benaissa Academic at the Ecole Nationale Supérieure de Technologie – ENST – Alger

In 2017 the Escola Europea, along with the Escola’s founding partners, has launched the MOS Magreb project. Its objective was to increase the cooperation between the countries in the North and South of the Mediterranean Sea. The project evolved into TransLogMed, which now counts with 42 partners from Spain, Italy, Morocco, Tunisia, Algeria, with the goal of incorporating other partners from Egypt in the future. The long-term objective of this project is to foster the development of the Motorways of the Sea between the Mediterranean countries, which will in turn help promoting inclusive growth and youth employability, as well as sustainable development in the region.

This month we have caught up with Mr. Mohamed Lazhar Benaissa, an academic at the École Nationale Supérieure de Technologie (ENST) in Alger, the deputy director for external relations and continuing education and a lecturer at the Escola Europea to give us an overview of the logistics scene in Algeria.

 

Logistics in Algeria

Algeria’s geographical location as the largest country in Africa, situated at the crossroads of important trade corridors (Europe-Africa, Mediterranean Sea), gives it the opportunity to play a major role in the field of logistics. To the north, Algeria has a 1,200 km long seafront overlooking the Mediterranean Sea and is home to 11 trading ports through which more than 95% of its foreign trade passes. However, this situation should not mask the numerous constraints related to the characteristics of these ports and their current organisation. According to the United Nations Conference on Trade and Development, the Maritime Transport Connectivity Index [1]for Algeria in 2019 is only 12.81/100, far behind countries such as Egypt (66.72) and Morocco (58.19).  This is because the ports are often of ancient foundation[2] and are located within large cities that have prospered without sparing the land reserves necessary for their harmonious development. Whether first or second generation, these ports are subject to simple load breaks and do not meet the criteria that characterise modern logistics ports[3]. Currently the feedering used consists of coupling transoceanic containerised traffic headed towards large European ports with short-distance traffic headed towards Algeria, which increases the transit time of inputs. This will subsequently see their time lengthening once again during the transhipment operations. This results in insufficient yields and malfunctions that generate incessant bottlenecks and yields additional logistics costs.

The Algerian fleet

As regards the Algerian maritime fleet, as of the end of 2017, it was made up of 16 (often) obsolete units distributed among :

  1. 8 bulk carriers, 4 multi-purpose vessels and 2 RO-RO vessels belonging to the public company CNAN[4],
  2. 1 RO-RO and 1 bulk carrier belonging to the private company Nolis, a subsidiary of the Cevital[5]group.

What about containerisation?

As for containerisation, which has been gaining significant market share value over the past several years, it has proven of great benefit to foreign shipping lines as, in the virtual absence of the national flag, it allows them to freely set transport prices. According to World Bank figures[6], container traffic increased from 2007 to 2018 from 200.050 to 1.465.800 TEUs respectively, which is equivalent to an average annual growth rate of 20.6%. Given this growth opportunity, it is not surprising that we are witnessing the establishment of international terminal operators in Algerian ports such as the Singaporean Portek in Bejaia and the Emirati DP World in Algiers and Djendjen.

Where is Algeria on the digitisation scene?

During port passage, the lack of a rapid information systems makes it difficult to forecast the capacity of goods to be loaded, which, in the case of temperature-controlled products for example, would keep them on the quayside without any guarantees of preservation and respect for the cold chain. At the time of writing, only the Algerian customs can use a computer system called SIGAD in order to speed up the customs declaration circuit. In its most recent version, this system has a risk management system that classifies goods according to 3 circuits: green, orange and red. In the green circuit, goods are not subject to examination. In the orange circuit, the control consists of a documentary examination and in the red circuit, a physical inspection of the goods is required.

What of intermodal transport?

In terms of land transport infrastructure, Algeria has substantial networks whose quality has improved in recent years. Nevertheless, the motorway network is still insufficient and the lack of connections to several ports bears a cost. The rail network, for its part, is still in the process of development in terms of quality and coverage.

Road transport logistics, which dominates 90 per cent of goods flows, is only slightly outsourced by companies, since more than 50 per cent of the market is still handled by own-account transport. There is currently a growing awareness of the advantages of using transport for hire or reward and outsourcing the transport function, and the opportunities for growth for this sector are ample.

The provision of road transport services has long been a public monopoly. The opening up of the sector in 1988 led to an atomisation of the sector through the creation of very small companies with vehicles of all ages and of varying condition. It is therefore more a question of small-scale, or even informal activities that risk increasing the financial and organisational risks and reducing the scope to optimise the services offered. Air transport plays only a marginal role and rail freight activity, which is already weak, has been in inexorable decline for decades and is limited to heavy goods transport. Multimodal transport is almost non-existent.

Distribution is dominated by wholesalers present in most economic sectors and in particular in agri-food products (beverages, sugar, etc.). Few of them follow known logistics models, such as Numidis of the Cevital group. Indeed, with the exception of large conurbations (Algiers, Oran, Sétif…), where large modern warehouses are beginning to appear, storage facilities are of modest size (from 2 to 4,000 m²), of old-fashioned design, lack functionality and do not have special equipment such as loading docks. The players are either industrialists (acting on their own account), wholesalers or retail traders.

Logistics Warehouse in Algeria

Modern logistics warehouse in Bouira (Cevital)

Thus, logistics services are essentially limited to the subcontracting of transport operations.

Can you tell us a little bit more about the training situation in Algeria?

The current supply of training is insufficient in many areas, no doubt due to the lack of formal demand from the sector and a lack of impetus from the public authorities.

The Algerian authorities have been trying to improve the logistics situation since 2007, when the first master plan for the establishment of new logistics platforms was prepared. However, the implementation of the latter has not yet materialized. The other actions undertaken were :

  • The World Bank has been approached to prepare a logistics strategy and upgrade the legislative and regulatory framework, as several ministries and agencies are currently involved in logistics and are sometimes in conflict of jurisdiction;
  • The preparation of a project for the construction of a modern port in Hamadania about 100 km west of Algiers with a Chinese partnership;
  • Digitisation through the implementation of an electronic port one-stop shop. This will help unite the whole logistics chain of the ports and the segments that interact in its activities. It will also enable the digitisation of procedures and a better coordination and planning of port operations.

One can already wonder whether these actions will end up putting logistics in Algeria on the rails of modernity.

 

References:

[1] https://unctadstat.unctad.org/wds/TableViewer/tableView.aspx

[2] With the exception of the oil ports of Arzew, Skikda and the general cargo port of Djendjen, built after Independence, the rest of the infrastructure was built between 1840 and 1959, initially built to allow exports during the time of colonization.

[3] Algerian ports are characterised by shallow draughts and narrow gravel pits, which are incompatible with modern port operating requirements.

[4] The average age of the CNAN fleet is between 30 and 35 years, which corresponds to that of the technical reform.

[5] The two Nolis vessels are mainly used to cover the transport needs of the Cevital group.

[6] Site https://donnees.banquemondiale.org/indicateur/IS.SHP.GOOD.TU?locations=DZ consulted in May 2020

logo SIL Barcelona 2019 - small

The Escola at the 2019 SIL Exhibition

This year the Escola Europea Intermodal Transport will once again participate in the International Logistics Exhibition (SIL Barcelona), the annual logistics fair held in Barcelona. This year the fair will take place from the 26th to the 28th of June in the Montjuïc Exhibition Centre of the Barcelona’s Exhibition Centre in Plaza España.

This year, the Escola will participate quite actively, by not only attending  the Exhibition itself, but also by contributing to the ALACAT Congress and to the MedaLogistics Summit.

Within the general framework of the fair, Marta Miquel, Chief Business Officer of the Escola, will present the institution’s new educational offer in the SIL Agora, by providing a brief explanation of the topics that the Escola currently covers in its courses, on the 26th of June at 13:30h.

That same day, members of the Escola will organise a dynamic and interactive game of FunTraders in the stand of the Port of Barcelona; a game of international trade will make it possible for the participants to discover the dynamis of the sector from a fun point of view. The game will take place on the 26th of July at 16:00h.

On the second day of the Fair, Eduard Rodés, the Director of the Escola, will serve as a moderator during the round-table discussion on “People First: Qualified Human Capital, Towards a Competitive & Resource Efficient Transport System”, with the aim of reinforcing the idea that human capital is necessary for an efficient and effective development of the logistics and port sectors. The round table will take place on the 27th of June at 12:00h.

During this same event, Raquel Nunes, responsible for training and promotion at the Escola, will present the SailNet programme dedicated to young shipping agents, to promote the exchange of knowledge and experience among members of the sector. This presentation will take place in the framework of EBSOMED, on the 27th of June at 16:00h.

Meanwhile, Marta Miquel will moderate a round-table discussion at the ALACAT Congress, which will bring together several international actors. The table called “Training in logistics in a 4.0 world” will be held on the 27th of June at 12:30h.

To finish the three days of the fair, Eduard Rodés will participate as a speaker in the delivery of training diplomas to students who have completed the advanced degree in Logistics and Transport in Catalonia this year.

Throughout the three days of the fair, the Escola will be present at the stand of the Port of Barcelona, located at D406. Come and visit us!