The global logistics company UPS has won the bid to be Expo 2020’s official logistics partner in Dubai.
It will run the venue for the six-month duration of the event and manage the interaction on site from now on. It has already begun work on constructing its headquarters that will eventually house more than 1,000 of its employees.
UPS was the logistics partner for the Beijing and London Olympics. The company declined to disclose the value of the Expo 2020 deal.
“I expect the scale of Expo 2020 to eclipse that of London 2012,” said Jim Barber, the president of UPS International. He said the event marks a transformational and motivational moment in Dubai’s history.
“The scope of Expo and the reach of Dubai meant we had to be here. It is not about the dollars and cents, although we will probably make a few pennies. We chose to be in Dubai because our global coverage has a dark spot in the Middle East and this is our chance to be hugely visible.”
He said the large number of small- and medium-sized businesses in the UAE meant it was naturally attractive to logistics providers.
The global logistics business is becoming increasingly competitive as e-commerce gains momentum. Fed-ex bought TNT in 2015 for US$4.8 billion to increase its global reach. With 237 aircraft UPS is the 6th largest airline in the world.
“The amount of business we win is immaterial,” said Mr Barber. “Dubai will become one of our centres that will connect the UPS global network. September 2018 is our first target that is when our headquarters and all the IT has to be ready on the site. This will give us an opportunity to grow into Africa, India and Asia and follow the Silk route.”
The logistical needs and management for Expo 2020 is a gargantuan task requiring infrastructure, communication, technical and labour services. A 27,000 square metre warehouse, the size of four football pitches, is already in operation.
“It was crucial we had a global logistical giant to make sure we delivered Expo 2020 on time,” said Marjan Faraidooni, the senior vice president of Legacy Development and Impact at Expo 2020 Dubai. “It will need huge amounts of goods and supplies of all kinds to be delivered from around the world to Dubai every day for the six-month duration of the Expo. The figures are colossal – 500,000 meals a day, two million hours of venue logistics activity, 9,000 tonnes of daily logistics.”
Last month, it was announced that Siemens would be a premier partner with Expo 2020 for Intelligent Infrastructure & Operations. The German company will also set up its global headquarters for airports, cargo and ports logistics on the Dubai Expo site after the event ends in April 2021.
ascott@thenational.ae
Follow The National's Business section on Twitter
