THE IMPACT OF DIGITAL TECHNOLOGY

ON THE
SUPPLY CHAIN
ANDREW HOAD
CEO and Managing Director,
DP World Asia Pacific
Responsible for the DP World portfolio of 11 port and logistics businesses within Hong Kong,
China, Korea, The Philippines, Indonesia, Thailand and Vietnam. Andrew has 30 years’
experience in the maritime industries, based within Asia Pacific, the Middle East, Europe and the
Americas.

Prior to relocating to Hong Kong for a second time, Andrew was working in Manila as CEO of
Asian Terminals Inc, DP World’s Philippines portfolio of container terminals, general stevedoring
terminals, passenger terminals and depots which he led through a significant optimization and
re-investment program.

Andrew has also been chief executive of container terminals in Peru and the Dominican Republic.
His first role in Hong Kong was as Commercial Director Asia Pacific for CSX World Terminals in
2004-05, prior to the purchase by DP World, which then took him to Dubai.

Andrew began his maritime career with the P&O Group, where he undertook a variety of
management roles including General Manager for Saudi Arabia and the Red Sea region for P&O
Containers based in Jeddah, and Commercial Manager for Southampton Container Terminal with
P&O Ports.

Andrew is a graduate of Cambridge University, with logistics qualifications from the Institute of
Chartered Shipbrokers, and has participated in executive programmes at IMD Business School,
the National University of Singapore and Case Western Reserve University and Massachusetts
Institute of Technology (MIT).
 DP WORLD IS AN INTEGRAL PART OF THE GLOBAL SUPPLY CHAIN

Integrated end-to-end
supply chain solutions
for cargo owners and
demand aggregators
150+ operations
in over 50
countries

Moved 10% of the

world’s trade in
Integrated logistics
2019 (71.2 mn
provider with ports and
deep sea terminals, containers)
economic zones, feeders
and inland assets

Active in high-growth
markets in Asia, South
America and Africa
CONTENTS

• Logistics supply chain industry today

• E-commerce has changed the rules

• Speed: Hyperloop & Boxbay

• Transparency

• China SWOT analysis

• 4 Future Scenarios for Global Supply Chain

LOGISTICS INDUSTRY TODAY
Today’s supply chains built for
large industrial enterprises.
Large shipments (container
sized) to large factories and
warehouses
Everything is BIG Extraordinary Bigger ships – bigger This simply will
globalised growth cranes – bigger ports: not do any more
1990-2008 transport industry has
simply chased
economies of scale
E-COMMERCE

E-commerce has changed We have replaced the Manufacturers can A system geared to We need to think not just outside
behaviours “supply chain” with the now bypass retail industrial giants doesn’t fit the box, but What’s in the box?
“demand chain” and wholesale this new dynamic How do we sort and separate into
outlets smaller boxes from the box?
CARGOSPEED: HYPERLOOP TECHNOLOGY

• JV between DP World and Virgin Group

• Electric power and magnetics technology

working in a near vacuum

• Nevada tests successful: 28ft pod

@300km/hr

• Time sensitive cargo at the speed of flight

for the cost of trucking
CARGOSPEED: HYPERLOOP TECHNOLOGY

• Indian Government has declared the Pune-

Mumbai hyperloop project as a public
infrastructure product

• If it is awarded as a concession, construction

will start on 11 km test loop

• Travel time from Mumbai to Pune reduces

from 4 hours to 25 minutes.

• This is a valid alternative to maritime for

China-Europe; more than electric –diesel
trains
BOXBAY: REVOLUTIONARY PROJECT BEING TESTED IN DUBAI

Containers stored up to 11 storeys,

delivering the capacity of a conventional
terminal in a third of the surface area

50 ton weights in racks 50m high

Eliminates unpaid and unproductive

shuffling

Energy efficient

Safer

Less operating costs

Preview scheduled for Global Expo in

Dubai 2021
BOXBAY: REVOLUTIONARY PROJECT BEING TESTED IN DUBAI
SPEED + COMPLEXITY TODAY MANAGED BY DIGITAL SYSTEMS

Terminal Operating Systems Robotics and Automation Autonomous Vehicles

(TOS) Fully automated terminals in Qingdao Trucks and two to three decades for
Algorithms to manage giant rubik’s and Rotterdam. Semi-automated drone ships (International Chamber of
cube of boxes terminals in Pusan and London Gateway Shipping)

Estimates of Sensors Internet of Things + Big

currently active Data
Anywhere from billions to over a Explosion of sensor technology
trillion

Currently baby steps: Long term Future

AI to AGI, ports, workers, factories will
Remote refrigerated box monitoring
be managed by social interaction of
port/ factory minds
DIGITAL = TRANSPARENCY

No. 1 issue with manufacturers and retailers is still ‘WE DON’T

KNOW EXACTLY WHEN GOODS ARRIVE, ESPECIALLY IN
RELATION TO CUSTOMS CLEARANCE”

TRACK & TRACE platforms: All transport companies becoming

data management companies

Trade Finance: Electronic Bill of Lading (B/L) on a blockchain

enabled platform

Trade Finance: DPW SeaRates booking platform: provides

trade finance using cargo as collateral: facilitates SME access to
world markets
ADAPTING TO THE NEW REALITY: ACCELERATED INNOVATION TO MOVE TRADE
ONLINE

CARGOES Flow eCommerce

Shipping visibility platform B2C and B2B Trade platforms

Digital freight
Cloud Based forwarding
Architecture

CARGOES DataChain
Blockchain platform
VISIBILITY AND TRANSPARENCY IN
TRADE

Visibility tool for global shipping, allows the management of all An enterprise blockchain platform for BCOs and their business partners to
bookings in one place share the documents, shipping data and to monitor their end to end
shipments from origin to destination

Centralised end-to-end KPI analytics to identify Instant document sharing End to end shipping milestone
visibility across the entire where the inefficiency with verifiable revision events logging and global
shipping network occurs to expedite history traceability
shipments

Near-real time notification on key milestone events Permissioned based data sharing among parties (Exporters,
and exceptions to avoid unforeseeable costs and fees Importers, Customs, Ports, Carriers, Service providers,
Banks etc.)
DIGITAL FREIGHT FORWARDING

Powerful freight search engines with instant access to shippers, carriers,

freight forwarders, tariffs and rates
SEARATES
LANDRATES AIRRATES

Dedicated account manager for Real time container tracking Virtual dashboard to keep Optimise working capital
each shipment as the single and ready made templates to track of all shipments and using trade and logistics
point of contact for a hassle-free generate shipping documents conversations in one place finance solutions
experience online
REGIONAL B2B TO B2C E-COMMERCE PLATFORMS

MANASAH SOKOES
Launched to enable small businesses to trade during COVID-19 and Launching soon across eight African countries including Rwanda, The
beyond in the UAE and surrounding region Democratic Republic of Congo and Uganda
YITIDONG - CHINA

Integrates services

Trade between Yiwu and Dubai is about $USD 5 billion –

100,000 TEU

Growing by 5% per annum

Yiditong provides a seamless, door to door, cargo flow from

Yiwu to Dubai and from Dubai to other destinations, in
particular Africa
This is a superior product based on Customs Integration, Cost
and Service Efficiency (one bill from China to Dubai) and all
services under one roof: storage, packing, transport, freight,
final delivery

Total investment of RMB 1 billion

FIRST SMART FREEZONE MARKET IN MID EAST

26th August 2019: DP World and The region’s first free-zone 80 hectares project Construction
Zhejiang China Commodity hybrid marketplace total. Phase 1 capex 22 commenced Q4
Group (CCC) announced (Wholesale/Retail) hectares at US$ 150m 2019 with 2 years
partnership to develop the completion target
“Traders Market” in Jebel Ali
Freezone (JAFZA), Dubai, UAE

Strategic Rationale

1. Mid East/Africa/Indian Subcon region critical for BRI Chinese traders:

2bn people in less than 6 hours airtime
2. Aligned with Dubai government strategy to transform city into hub for Phase 1 cluster
international investors and traders. JAFZA becomes a market place as 7&8
much as a logistics area
3. Enable small enterprises to enjoy JAFZA benefits while retaining
ability to serve local market without leasing two establishments
4. Ease international buyers accessibility to procure bulk products through
Dubai at discounted wholesale price and with shortest delivery time
Expo Site
5. Flexible Customs regime: traders pay duty after selling in local market
20
CHINA TRADE - SWOT
STRENGTHS
• China is winning the technology war
• Joined up government
• Culture of innovation
• 25% global manufacturing output
• 20% global population
WEAKNESSES
• Rigid hierarchical bureaucracy
• “Middle Income Trap” – pressure to move up
value chain
• Rising costs and slowed growth
• Ageing population
OPPORTUNITIES
• Positive China consumer confidence
• Global assets for sale
• Greater bay area Initiative
• More focus on compliance: Data Protection, Copyright and
Patents issues
THREATS
• International lack of trust (COVID-19)
• De-globalization (China+1)
• Tariffs
• Negative perception of Belt & Road
• Leveraging and Bankruptcies (Debt 300% of GDP)
WHY DOES DIGITAL MATTER?

The world needs to stimulate and Digital tech will bring local
facilitate growth now more than SMEs to a global market
ever

WTO: Digital Tech like blockchain WTO: Current trade costs for
and IOT could add 34% to trade developing countries equivalent
growth over next 15 years by to 219% tariff on their
cutting cost international trade
FUTURE VISIONS

Imagining 4 Different Worlds of Future Supply Chain Transportation

1) Digital Re-invention

2) Digital Disruption

3) Third Wave of Globalization

4) Revolution in Manufacturing Technology & Near Shoring

The first two assume digital ,data and analytics will be the most important industry trend and the question is who
leads

The latter two assume digital is important but not a fundamental shift, and the real question is outlook for trade
growth
FUTURE VISIONS

Which One ?

• The future will probably adopt some characteristics of all these scenarios, although we believe that the
digital visions will be dominant.

• Standing still on the question of digital data and analytics is out of the question.

• The potential for value creation is enormous.

• We believe those with an Asset network and expertise on digital management will be successful in
competition with those who lack the Asset Network.

• We are focusing our infrastructure on several routings that facilitate Chinese automotive supply chain.
For further enquiries please contact:

Andrew Hoad
Chief Executive Officer and Managing Director
DP World Asia Pacific
T.: +852 2489 5690
Andrew.hoad@dpworld.com

Benjamin Lai
Managing Director, China and Head of Commercial
DP World Asia Pacific
M.: +852 9030 0872
Benjamin.Lai@dpworld.com