Dubai Government Policies for Enhancing the
Competitiveness of Multimodal Transportation
and Logistics Cluster
June 2014
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Enhancing Dubai’s competitiveness as a global
transportation and logistics hub
Why Cluster assessment approach for Dubai’s Multimodal Transportation and
Logistics?
Cluster assessment is a microeconomic approach, enables assessing cross-cutting issues
vertically and horizontally within the industry and activities’ linkages.
There are two main sectors defined by Dubai Statistical Centre that cover the core and
supporting activities of Dubai’s Multimodal Transportation and Logistics activities
1.Transport, storage and communication sector with 13.9 percent of GDP and
2.Wholesale, retail, trade and repairing services sector with 30.7 percent of GDP
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Policy owner and stakeholder involvement
The Multimodal Transportation and Logistics Stakeholder Platform for Collaboration
was launched by Department of Economic Development, the Government of Dubai in June
2011 and brings together :
1. Government Departments and Authorities
2. Core businesses, related and supporting industries
3. Industry associations, interest groups and educational institutions
4. International Standards Organizations (Dubai /UAE Chapters)
The Stakeholder Collaboration Platform holds:
•
Regular cluster stakeholders’ meetings
•
Focus group discussions
•
Technical committees with relevant government and private sector stakeholders
The main objective of the Cluster Platform is to enhance Dubai’s competitiveness as a
multimodal transportation and logistics hub by:
• Enhancing the seamless movements of goods and services between air, sea, road modes
of transport, logistics services and Free Zones in Dubai
• Enhancing the environment of companies’ growth strategies
• Achieving coordinated and integrated approach to infrastructure, policy, regulatory and
operational issues.
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Snapshot of Collaborative Policy Development Steps
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2
Policy
Development
Agenda
• Department of
Economic
Development
Transportation and
logistics sector
research and study
conducted
• Surveys, interviews
conducted with
private sector and
government linked
companies
conducted
• Global rankings and
indexes on
Transportation and
Logistics analyzed.
Benchmarking with
competitors
conducted
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Official
Assignment
5
4
Policy Proposal
• Focus group
discussions with
public and private
stakeholders
conducted
• Solutions to the
challenges are
defined vis a vis
competitors by all
stakeholders
• Cluster
methodology is
selected due to
multimodal
transportation and
logistics Hub
nature, and the
multidimensional
impact of
challenges
• Technical
committees
between relevant
government
authorities and
private companies
are established to
study the
challenges and
solution
• Department of
Economic
Development’s
Cluster Platform is
Launched
• Stakeholder
consultations on
the scope of the
issues and policies
Policy
Development
Policy
Implementation
• Policies, Strategy
and action plan is
established by joint
stakeholders for
discussions and
feedback
• Joint Stakeholder
strategy and
policies have
been approved
by the Executive
Council of Dubai
Government, the
Emirate of Dubai
• Project plan for
each policy
implementation,
assignment of each
stakeholder and
implementation
timeline developed
• KPIs, monitoring
and
implementation
mechanisms
established
• Implementation
and monitoring
committees of
the cluster
platform
regularly update
the stakeholder
collaboration
platform on the
progress made,
challenges to be
addressed
History of the Dubai Multimodal Transportation and Logistics Cluster:
Key Developments and Institutions
Dubai
International
Airport
established
Port Rashid
expanded
Dubai Dry
Dock opened
Port Rashid
build
Port Hamriya
build
1959
Emirates
SkyCargo
established
1967
1975/76
Jebel Ali port
opened
1979
Infrastructure
1983
Dubai
Airport
Expansion
DP World
acquires P&O
terminals
Dubai Ports
Authority
created
Dubai World
created
Dubai Ports
International
created
Jebel Ali Free
Zone created
Al Maktoum
International
Airport
Dubai
World
Central
Platform for
collaboration
Cargo Village
launched
1985
1991
1999
2006
Anchor companies
Strictly confidential
2008
2010
2011
Expansion
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Value Chain- Multimodal Transportation and Logistics Market Segments
Air
transportation
Core segments
of the cluster
Sea
transportation
Road
transportation
Upcoming
rail
Geographic
Scope
Multi-modal
global trade hub
Supporting activities
Storage, ICT , wholesale, retail trade,
repair/engineering services, specialized
educational and training institutions are
amongst the key supporting activities.
Regional sea &
road
Asia-Europe sea
& air
Related activities
The cluster also has a strong externality
impact on the following sectors:
 Tourism
 Manufacturing
 Finance
 Construction
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Mapping Dubai’s Multimodal Transportation and Logistics Cluster
Maintenance and
engineering
services
Shipbuilding, repair,
Core Sectors and activities of the
Cluster
Tourism
engineering
Container
Shipping
Lines
Airlines
Industry specific
education and training
programs
UAE, Dubai customs,
RTA, DMCA, DCAA, FZ
Council, other gov.
agencies
Integrated road
network, airports, ports,
FZs, communication
infrastructure,
upcoming Rail
Finance
Manufacturing
(Free Zones)
Aircraft
Rail
Related and
Supporting Clusters
Land transport
(and upcoming
rail)
Handling agents
Logistics
providers
Storage &
Warehousing
Port operations
(container and
cruise)
Airport
operations
(cargo and
passenger)
Construction
Cluster Associations:
Emirates Freight
Forwarders Assoc.,
Dubai Shipping Assoc,
Green Aviation Logistics
Group, Chartered
Institute of Logistics and
transportation ,
Dubai Supply Chain
Logistics Group,
National Association of
Freight and Logistics
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Cluster Segment Definition
Core segments (sectors) of the cluster are:

Road Transportation
 Air Transportation
 Maritime Transportation
Supporting activities
Storage, ICT , wholesale, retail and repairing services, industry specialized educational and
training institutions all are supporting activities to the core activities.
Related activities
The cluster also has a strong externality impact and the intensive transaction with the
following sectors:
 Tourism
 Manufacturing
 Finance
 Construction
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The key processes in Dubai as Multimodal Transportation and Logistics
hub
1. The infrastructure operators, locally dominant government owned firms who
run physical port and airport facilities that are needed to provide with logistical
services.
2. The logistical service providers, a larger and much more heterogeneous
group of companies including foreign and private domestic entities, provide a
multitude of services from warehousing to handling to integrating and other
value added activities.
3. The Transport providers finally provide the logistical connections to other
geographies. Emirates Airline is a dominant airline, yet there are large number of
foreign airlines as well. There are no local shipping lines but the major
international shipping lines operate in Dubai.
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