Tech investment is key for Shipa Delivery, says CEO Borhene Ben Mena. Antonie Robertson/The National
Tech investment is key for Shipa Delivery, says CEO Borhene Ben Mena. Antonie Robertson/The National
Tech investment is key for Shipa Delivery, says CEO Borhene Ben Mena. Antonie Robertson/The National
Tech investment is key for Shipa Delivery, says CEO Borhene Ben Mena. Antonie Robertson/The National

Exclusive: Agility-owned Shipa eyes $300m in revenue from SME freight bookings


Jennifer Gnana
  • English
  • Arabic

Shipa Delivery, an Agility Company is eyeing $300m in revenue this financial year from rising freight bookings as it plans expansion in the Middle East on the back of the region’s growing e-commerce sector.

The company, which was started as part of regional logistics conglomerate Agility in May allows for the GCC’s small and medium sized businesses to use freight services at an affordable rate, according to its chief executive Borhene Ben Mena.

With around 1,000 SME clients in the UAE, Kuwait, Saudi Arabia and Jordan, Shipa is eyeing expansion into Egypt and other lucrative markets in Africa.

“[We’re servicing] clients who will not be served by Agility because they’re small,” said Mr Ben Mena.

“Agility caters to large clients who have high purchasing power, and want full service, a dedicated account manager with a blocking capacity up front,” he added.

Kuwait-based Agility, which used to be the key supplier for the US army in Iraq plans to invest at least $2 billion into its business by 2020. Shipa, which is part of its portfolio is betting on the growth of regional e-commerce and has allocated a capital expenditure of $6m this year.

“[Next year], we’re looking to increase that to twice that amount,” he added.

Nearly 80 per cent of the firm’s investments are in technology, of which the company is specifically eyeing the potential to leverage artificial intelligence and block chain.

“We have all these block chain initiatives but we’re not there yet but the technology exists. AI is already mature,” he said.

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With capital from Agility, the company is being groomed to disrupt the regional logistics sector allowing for cash-strapped SMEs to have more domestic options to ship with.

Much of the traffic facilitated by Shipa comes from China, which is a key source for garments, textiles and other products imported by regional e-commerce firms.

"The two main geographies are US and China. The UK used to be big but we see that slowing,” said Mr Ben Mena.

Shipa, which carries out around 100,000 bookings of shipping containers per month, is looking to increase the total number to 1 million per year on the growth of regional industry.

Freight handled by the company is more inbound rather than export with Saudi Arabia and the UAE accounting for much of intra-regional trade.

“It costs about $300 per booking, so $300m revenue could be achieved by that in a year maybe,” said Mr Ben Mena, noting that internal targets for the firm are much more aggressive.

The biggest challenge for the player is navigating customs compliance on behalf of SMEs, a tricky area as e-commerce retailers in the region occasionally trade in counterfeit products.

“Everybody is throwing that [compliance] hot potato to his partner in the supply chain,” said Mr Ben Mena.

“In the UAE there is this issue of greenmarket products being mixed with genuine products. As a logistics operator we just make sure that if it’s a sealed product, we deliver it as it is and if it’s an open product then it’s our responsibility to look at what’s inside because we’re packaging it and selling it to clients,” he added.

The drill

Recharge as needed, says Mat Dryden: “We try to make it a rule that every two to three months, even if it’s for four days, we get away, get some time together, recharge, refresh.” The couple take an hour a day to check into their businesses and that’s it.

Stick to the schedule, says Mike Addo: “We have an entire wall known as ‘The Lab,’ covered with colour-coded Post-it notes dedicated to our joint weekly planner, content board, marketing strategy, trends, ideas and upcoming meetings.”

Be a team, suggests Addo: “When training together, you have to trust in each other’s abilities. Otherwise working out together very quickly becomes one person training the other.”

Pull your weight, says Thuymi Do: “To do what we do, there definitely can be no lazy member of the team.” 

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

In numbers: China in Dubai

The number of Chinese people living in Dubai: An estimated 200,000

Number of Chinese people in International City: Almost 50,000

Daily visitors to Dragon Mart in 2018/19: 120,000

Daily visitors to Dragon Mart in 2010: 20,000

Percentage increase in visitors in eight years: 500 per cent

Company%20profile
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TICKETS

Tickets start at Dh100 for adults, while children can enter free on the opening day. For more information, visit www.mubadalawtc.com.

COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20PlanRadar%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2013%3Cbr%3E%3Cstrong%3ECo-founders%3A%20%3C%2Fstrong%3EIbrahim%20Imam%2C%20Sander%20van%20de%20Rijdt%2C%20Constantin%20K%C3%B6ck%2C%20Clemens%20Hammerl%2C%20Domagoj%20Dolinsek%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EVienna%2C%20Austria%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EConstruction%20and%20real%20estate%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3E400%2B%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3ESeries%20B%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Headline%2C%20Berliner%20Volksbank%20Ventures%2C%20aws%20Gr%C3%BCnderfonds%2C%20Cavalry%20Ventures%2C%20Proptech1%2C%20Russmedia%2C%20GR%20Capital%3C%2Fp%3E%0A
The specs: 2018 Range Rover Velar R-Dynamic HSE

Price, base / as tested: Dh263,235 / Dh420,000

Engine: 3.0-litre supercharged V6

Power 375hp @ 6,500rpm

Torque: 450Nm @ 3,500rpm

Transmission: Eight-speed automatic

Fuel consumption, combined: 9.4L / 100kms

Most sought after workplace benefits in the UAE
  • Flexible work arrangements
  • Pension support
  • Mental well-being assistance
  • Insurance coverage for optical, dental, alternative medicine, cancer screening
  • Financial well-being incentives 
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River Plate 4

Zuculini 24', Martinez 73', 90 2', Borre 89' (pen)