Docked and in need of repair, a ship stranded at Dubai Dry Docks last month found salvation from an unlikely source.
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A 36-tonne rudder part required by the vessel was transported from its manufacturer in Seoul to Dubai by SkyCargo, Emirates Airline's freight arm. It was the heaviest single item ever carried by the airline's cargo division.
Cranes lifted the component on to the noseloader of a specially sourced Boeing 747, one of the few aircraft large enough to transport such a heavy load.
While such items are normally transported by sea, the ship's owners required a quicker delivery to cut the cost of the vessel being out of service.
"Transporting a piece of cargo this heavy requires the highest degree of care and special handling," said Hiran Perera, Emirates' senior vice president of cargo planning and freighters. "Two cranes - capable of lifting 50 tonnes each - along with two high loaders were required, while more than 30 workers in both Seoul and Dubai made sure the intricate loading operation went smoothly."
The delivery is an indication of the increasing mark regional airlines are making in the global freight market. It is also a sign of the great lengths to which carriers go to swiftly and safely freight goods as varied as luxury cars, animals and art work.
According to estimates by Boeing, global cargo traffic by 2029 is expected to grow by 5.9 per cent per year to reach 526.5 billion revenue tonne-kilometres, the industry gauge to measure the amount of freight shipped.
The long-term growth trend is expected to remain positive despite a 4.8 per cent reduction in air cargo traffic last month from the same month last year. Earlier this year another Emirates freighter helped to deliver two large helicopters to Brazil for use by the energy giant Petrobras. The helicopters will be used to service oil rigs off Rio de Janeiro.
But while cargo handlers are increasingly having to accommodate larger commercial items, they equally have to be ready to turn their skills to transporting priceless artefacts.
Etihad Airways last month carried more than 100 historic manuscripts from Berlin's State Library to the National Library of Australia in Canberra for an exhibition.Spanning 1,000 years of history, the treasures feature illuminated manuscripts, rare letters, sketches, musical scores and other documents written by major historical figures from literature, music, religion, science and philosophy. Works by Mozart, Michelangelo, Charles Darwin and Albert Einstein were among those carried.
The documents were specially packed in tailor-made, humidity-controlled cargo crates for the journey. Air handlers accompanied the special cargo, carrying the most precious artefacts in protected hand-carry cases. "Overall, it is a story of great collaboration, coordination and careful synchronisation from start to finish," said Roy Kinnear, the senior vice president cargo at Etihad Airways.
"Our team at Etihad Airways, both on the passenger and cargo side of operations, worked closely with the Staatsbibliothek in Berlin and the National Library in Canberra to ensure safe passage of the priceless artefacts."
The documents will be displayed in Canberra for four months before being freighted back to the Berlin State Library.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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