Centre Point launch AED60-mil warehouse in Dubai South
Centre Point Logistics (CPL) has announced the commencement of operations of its newly built AED60-million state of the art warehouse in the Dubai Logistics Corridor in Dubai South.
With current total investments of over AED100 million in warehouse and distribution space of over 3 million square-feet in the UAE and Oman, CPL’s turnover is expected to increase to around AED 50 million per year as a result of this latest launch, the company statement said.
The 242,726 sq ft warehouse further consolidates CPL’s foothold in the AED86 billion logistics market of the UAE, and in the overall GCC market worth AED171 billion, 25% of which is made up of warehousing expenditure according to Frost & Sullivan.
Establishing the warehouse at the Logistics Corridor in Dubai South enables CPL to leverage proximity to Expo 2020 site, Dubai’s Jebel Ali Port, the Al Maktoum International Airport, the world’s largest airport in the making, which gives the company an edge in terms of time saving and significant reduction in operational costs for its clients.
“Our new state-of-the-art warehouse facility has been built based on our study of local and international market requirements from every angle. We are fully LEED certified logistics provider. We are also in discussion with suitable solar energy contractors who are checking the possibilities of installing solar panels on the rooftop of the warehouse in order to reduce or avoid the consumption of traditional electricity,” said Oliver Pesov, deputy general manager of Centre Point Logistics (CPL).
“Operationally, the facility can be single or multiuser, supporting indoor and outdoor storage as well as dedicated area for value added services like, labelling, packing, re-packing and allied services,” he added.
A report published by Frost & Sullivan last year forecast 4% year-on-year growth in the UAE logistics sector, with a compound annual growth rate (CAGR) of 5.7 per cent between 2015 and 2020. The key drivers of the industry are Expo 2020, national logistics development plans, and trade with Asia and Sub-Saharan African countries.
Around 25 per cent of the GCC’s AED 171 billion logistics market is spent on warehousing, the report added. Centre Point Logistics (CPL), with its pioneering Open Architecture model currently operates from several locations in UAE.
CPL’s logistics hub in Jebel Al Free Zone, spanning over 44,000sqm,existing logistics hub in DWC, spanning over 83,000sqm and a storage facility in Hamriyah Free zone in Sharjah spanning over 30,000 sqm all provide storage, handling and Value Added Services (VAS) to the logistics and supply chain customers.
“The new facility consolidates CPL foothold in the UAE logistics market, a reliable partners for Al Maktoum International Airport and Expo 2020 customers. It reinforces company’s commitment to its customers for providing the quality services,” Oliver added.
Outside UAE, the company acquired a 50,000 sqm logistics facility at Sohar Port and Freezone in Oman two years ago. CPL considers it a milestone because it gives wider access to the GCC market, including Saudi Arabia, which now has a road link to Sohar Port.