Levelling work is underway at the International Logistics City (ILC) site in Sharjah and expected to be completed within the next few months, says the developer of the project, Momentum Logistics.
Momentum Logistics, a new third-party logistics (3PL) company launched in the fourth quarter of 2008, is developing a one-of-a-kind logistics city in Sharjah. Momentum, whose parent company is Gulftainer Company, an international port management firm with transport and logistics expertise, says its state-of-the-art facility, operational next year, will provide a true logistics hub for the emirate and the region.
The 700,000 sq m ILC is Momentum’s flagship project and will house warehouses, distribution centres offering temperature controlled solutions, the Transportation Park, a container freight station, a container repair workshop, self storage facilities, offices, personnel accommodation blocks and a food court.
Momentum offers a complete range of 3PL and supply chain management services to international companies looking to outsource their logistics requirements. Over the next seven years, it plans to invest Dh1 billion in its various projects, including the ILC, as well as expanding its operations and establishing the company as the top 3PL and supply chain management company in the region and internationally, says Matthew Derrick, general manager, Momentum Logistics.
Momentum was established through the consolidation of Gulftainer’s existing business sectors (transportation, container repair and Sharjah Inland Container Depot) and the formation of new business sectors (freight forwarding, logistics cities and contract logistics) to allow for strategic development under one new ‘super’ brand.  
“We have the capability, experience and drive to successfully compete in a market with large global players, and our local knowledge and understanding, coupled with our understanding of international service standards and expectations, provides us with a significant competitive advantage,” says Derrick.
Momentum’s offices in the Sharjah Inland Container Depot (SICD) form the base of operations for its first freight forwarding office, which, along with its transportation division, recently commenced operations.
 “At the moment, our plan is to solidify our base in the UAE, with our new offices to open in Dubai and Abu Dhabi this year,” says Derrick.
 “Once we are established here, we will begin branching out, and in fact we are already involved in two joint ventures – one in Turkey and one in Pakistan – and we are also looking into business opportunities in Iraq. We will obviously evaluate other opportunities as and when they arise, but as I said, for the immediate future, our focus will be predominantly on the UAE.”
According to Derrick, the time is ripe for logistics-focused companies in the UAE and in the Middle East in general.
“Demand for 3PL services in the region is strong, and I expect it to remain this way.  During this challenging period companies have a fantastic opportunity to look internally in order to seek growth. Over the past three years the extraordinary levels of growth within the UAE have largely come from increases in revenue, and managing this growth has been a real challenge for many organisations. The current climate now provides an opportunity to draw breath and look at internal efficiencies and structures,” he says.
“As companies do this we believe that a logical reaction will be to streamline their operations in order to focus upon their own core business. During the past few years many companies have developed their own logistics departments, purchased trucks, warehouse equipment, and in some cases even warehouses. Managing these activities is time-consuming and causes unnecessary distractions, therefore, it is logical to expect such companies to outsource these services to professional 3PL companies. A professional 3 PL company can add real value to their clients in terms of cost reduction through economies of scale and improved service through knowledge and expertise.”
Another key advantage for organisations choosing to outsource will be the generation of capital through the sale of equipment such as vehicles, warehouse equipment and in some cases warehouses, according to the official.
Momentum’s core business is built around five divisions:
 
Transportation: Momentum will begin operations with 119 vehicles, and plans to expand its fleet to 500 vehicles in multiple categories, including flatbed trucks, small fixed-body vehicles, and car carriers by 2013. More specialised equipment can also be made available to customers at competitive rates, and transportation is undertaken throughout the Arabian Gulf area.

Freight forwarding: Momentum’s freight forwarding business is a one-stop freight solution offering a diverse range of services including air freight, ocean freight, customs clearance and land transport. Headquartered in the Sharjah Inland Container Depot, the division will open two offices this year covering all major gateways within the UAE.

Logistics cities: Momentum’s Logistics Cities division is responsible for the management of SICD and the development and management of logistics cities. SICD contains offices, warehousing, LCL facilities, workshops and a container repair facility as well as customs and health facilities and agency offices of the major shipping lines. Momentum is also developing ILC.

Container repair: Its container repair division operating 24x7 offers repair service for steel, aluminium, open-top containers, flat racks and reefers transiting Sharjah and Khorfakkan terminals, out of two fully-equipped depots.

Contract logistics: Momentum’s contract logistics sector is designed to cater for those clients seeking to outsource a large portion of their supply chain under the governance of a single contract. This will include distribution centre management in terms of receipt, put-away, storage, pick, pack, dispatch and inventory management of material, and will quite often extend to freight forwarding and transportation. Complementing this sector is the construction of a 25,000 sq m distribution centre within ILC, which is scheduled to be operational in 2010.
By 2013, Momentum plans to employ in excess of 700 people, throughout the globe.