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CASE STUDY: Agility expands in Abu Dhabi

by ASC Staff on Sep 13, 2017

The company is also acquiring 50 new trucks, mostly flatbeds, from Mercedes.
The company is also acquiring 50 new trucks, mostly flatbeds, from Mercedes.

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Agility is planning to build a new warehouse facility in Abu Dhabi as part of its expansion plans in the emirate with an AED 100-million investment in a 21,000 sqm warehouse and acquisition of 50 new trucks. Bassel El Dabbagh, chief executive officer of Agility in Abu Dhabi, told Logistics Middle East that the logistics giant plans to have the facility fully operational by Q4 2018.

“The new warehouse will cater to the needs of retail customers, oil and gas companies and the government sector in storage and distribution of goods,” says El Dabbagh.

Talking about the opening of the new mid field terminal at Abu Dhabi International Airport, El Dabbagh added that air cargo is expected to grow. “When the new terminal opens, we would see more cargo coming to Abu Dhabi. This would benefit our company,” he explains. The new AED 10.8 billion mid field terminal is expected to be opened in 2019.

The Kuwait-based logistics firm also plans to strengthen its presence in Kizad by developing a number of logistics services at the industrial zone in addition to the new warehouse facility in Musaffah Industrial Zone.

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“We are strengthening our presence by leasing a 200,000 sqm plot of land at Kizad to offer a number of services including open yard storage and container services. In the long run, we plan to build a warehouse at Kizad to accommodate more cargo as the UAE focuses on the diversification of the economy” he explains.

Agility handles around 40,000 containers of cargo a year in Abu Dhabi and the diversification efforts are important as it has traditionally relied on the oil and gas sector for a lot of its activity in Abu Dhabi. Its fleet of 250 trucks for example provides services in breakbulk and containerised cargo for the oil majors and EPCs, with around 50% of all trips dedicated to this sector.

“The drop in oil price has not led to a decrease in volumes, but demand has stayed flat,” explains El Dabbagh. “On top of that, the challenge we face is that for the same volumes the revenue is decreasing; most companies, and in particular the oil and gas companies, are asking us to drop the rates for the same volumes.” Nevertheless, Agility’s commitment to breakbulk and Oil & Gas remains paramount.

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