Agility Abu Dhabi in expansion mode

Agility Abu Dhabi is set to capitalise on the emirate's construction boom.

Logistics thrives on the booming infrastructure projects in the emirate.

Agility Abu Dhabi, a branch of the Kuwait-based logistics company, will build the emirate's largest warehousing facility and purchase hundreds of heavy transport lorries to capitalise on a construction boom. The investments are part of a five-year, Dh500 million (US$136m) plan for the logistics and supply-chain management firm - the largest by market value in the Gulf - which has sought to win clients in the UAE's private and public sectors as its work supplying the US military in Kuwait and Iraq winds down. Agility is building a 400,000-square -metre logistics park in Musaffah, the industrial zone just outside the island of Abu Dhabi that is scheduled to open in January 2010. The centre will include a 40,000 square metre warehouse with a height of 15 metres, said to be the largest in Abu Dhabi, and an 80,000 square metre open-yard storage area, according to Houssam Mahmoud, the country manager for Agility. "This is the backbone of our supply chain management system, with the overall project worth Dh300m," said Mr Mahmoud, adding that it will serve its clients in oil and gas infrastructure projects and consumer goods. Logistics firms have thrived as new infrastructure projects - from oil and gas pipelines to upscale property developments - are launched in the emirate due to the region's oil boom and the Government's economic diversification campaign. "It would have been impossible to imagine the growth rate we are now seeing," said Mr Mahmoud. "The demand is phenomenal." Due in large part to record oil prices, Abu Dhabi last year grew its gross domestic product by 17 per cent, to Dh400 billion, or 58 per cent of the nation's economic output, according to the Ministry of Economy. Agility also plans to bolster its fleet of heavy transport lorries as the pace of the Government's infrastructure development quickens. Agility holds major contracts to deliver oil and gas piping materials to the Al Gharbia western region and a deal to deliver hay to the emirates cow and camel day farms using up to 100 lorries per day. Its current fleet of 200 trailers will be increased to 500 by 2011, Mr Mahmoud said, through a planned deal with Mercedes-Benz, valued at Dh110m at list prices. Agility is one of the biggest Mercedes clients in the world, having purchased nearly 8,000 heavy lorries from the German car maker since 2004. Agility is also trying to position itself as a major supply chain management firm for the UAE Armed Forces as the Government embarks on a major outsourcing programme and solicits partnerships with private sector contractors. Agility has previously managed supply chain operations for Fujitsu-Siemens's computer business in Jebel Ali. To facilitate the economy's diversification into other sectors including properties, industry and tourism, the Government has committed itself to Dh642bn in infrastructure projects in the next 10 years. In addition to the Musaffah facility, Agility is considering other logistics centres as new transport initiatives come online over the next five years. It has commissioned a feasibility study to build a logistics park at Khalifa Port and Industrial Zone, scheduled to open in 2011. The port and industrial zone is being planned in Taweelah, near the border with Dubai, and will replace the capacity constrained Mina Zayed port on the island of Abu Dhabi. Also, a smaller facility is being considered for the forthcoming free zone being planned at Abu Dhabi International Airport, which would allow the company to accommodate materials arriving by air, such as heavy equipment from European customers including Siemens and ABB. The airport free zone is part of a $6.8bn expansion programme that will see the addition of a new runway, several terminals and other facilities to make Abu Dhabi an international air hub. In June, Agility won a one-year contract worth up to $2.8bn from the US Defence Logistics Agency for food supplies, in spite of being the subject of a US investigation into possible fraud and overcharging relating to earlier supply contracts. @Email:[e-mail]