GEFCO Dubai to distribute Hyundai in the Middle East
GEFCO Dubai has announced the signing of a strategic automotive distribution agreement with GK Automotive, the distributor of the Korean car maker Hyundai in Dubai.
Under the terms of the new partnership, GEFCO Dubai will be responsible for all operations including the transport and distribution of 12,000 cars per year, while also taking charge of its storage and custom clearance.
According to GEFCO senior executives, Dubai's excellent central hub location in the Middle East, accompanied by the key presence of advanced logistics infrastructure, makes it a strategic starting point to develop traffic to and from the region via sea, air and road. From this perspective, the new alliance proves to be both timely and effective, particularly for GK Auto, as the shift of the hub will also help decrease logistics costs for them.
With the agreement already in effect, Hyundai cars exported from Korea will now be shipped to Dubai by GEFCO and will be stored in the emirate for national and international distribution. GEFCO Dubai will then ship the cars to Iraq by sea to Um-Qasr and will take care of the road distribution in Iraq. All custom clearance formalities within these three countries will be processed by GEFCO.
"We are absolutely confident that GEFCO will be able to offer us the reliable and efficient service we are requiring," said Hazem Abdel-Rehim, managing director, GK Auto. "We believe the flexibility of GEFCO’s offering will meet both our immediate and longer term needs – allowing us to run our business at optimum efficiency."
GEFCO first opened its Dubai offices in late 2012 and has been fully operational since February this year. Renowned for its logistics operations in the automotive industry, the opening of the new offices is in line with the company's strategy of utilising the emirate as a hub to complement and expand existing operations. It also consolidates GEFCO’s existing presence in the region, which includes representation offices in Iran and Iraq opened in 2011 to support trade primarily with China, India and Eastern Europe. The rapid growth in activity has allowed for the creation of a dedicated subsidiary to effectively manage and further develop business. GEFCO's Middle East operations and presence is perfectly positioned to bring the group’s recognised expertise in end-to-end import and export multimodel and automotive solutions to the region--thereby ensuring an optimized supply chain for customers.
"We are delighted to be working with GK Auto, Hyundai's exclusive distributor in Dubai. We are confident that the solution we have offered to GK Auto will accommodate the demands of their business and will be more cost reductive. Working closely with GK Auto and understanding the demands and challenges of their operations has led us to recommend the use of Dubai as a center for the inbound transports from Korea and distribution from Dubai to Iraq,” concluded Stefano Pollotti, country manager, GEFCO Dubai.