The opening recently of the first phase of Gulf Warehousing Company’s (GWC) much-awaited Logistics Village Qatar (LVQ) is seen as a big step forward in its drive to reinforce dominance in the state’s logistics sector but the company has also announced it will expand into other Gulf markets to develop a strong presence there.

Phase 1 of LVQ covers 250,000 sq m and houses seven warehouses of which one, named 33K and occupying 33,000 sq m of space, will be operated by GWH. The other warehouses in the village will be operated by GWC’s tenants. Logistics Village Qatar will eventually embrace 1 million sq m.

GWH’s 33K is up and running with a storage capacity of 60,000 pallet positions. It already enjoys 80 per cent occupancy in terms of pallet positions, the company said.

'This facility brings alive the company’s vision to create an advanced logistics hub that marries the latest technology with sophisticated IT technology and modern architectural development to create a paperless warehouse operation,' said GWC’s CEO Ranjeev Menon. 33K boasts very narrow aisle (VNA) racking up to 12 m, modern VNA man-up machines, dock leveler control systems, superflat floorings and the latest warehouse management systems. Phase 1 also includes areas for truck maintenance and container storage.

Phase 2 will offer additional solutions through small and medium multi-purpose warehouses, a car storage space and an open storage area for customers in pursuance of a one-stop logistics solution for customers.

'Construction has begun for the second and final stage with completion set for Q1 2012,' announced Menon.

The new Logistics Village Qatar is one of several facilities that GWC operates in the country. The company offers total storage of over 150,000 pallet positions. Its flagship chemical facility, operating in Ras Laffan as Hazmat Logistics Solutions, is described as the first ISO certified and government-approved chemical storage in Qatar that is capable of servicing third parties.

Wide portfolio

Its other GWC offerings include freight management, sports logistics, project logistics, transport management, moving and relocation solutions within and outside Qatar, records management, asset management and supply chain consulting solutions. Qatar being home to large oil and gas reserves, GWC has set up warehouses for the hydrocarbons sector.

Agility Qatar completed its merger recently with Gulf Warehousing Company. In its Q1 financial results, the Agility Group said Agility Qatar’s merger with GWC resulted in KD 7.86 million ($28.6 million) in a one-off gain in the quarter. Agility operated a warehouse in Doha which is now within the GWC portfolio.

'Demand for logistics solutions has been increasing in the last few years due to companies’ expansions,' said Menon. 'With the winning of the award to host the World Soccer tournament in 2022, Qatar is poised to boom with the announcement of major projects and events. This directly increases the freight and storage requirements of companies, particularly the construction sector,' the official said, adding: 'Qatar is rated as one of the fastest growing economies in the Gulf and this encourages companies to open up businesses in the country.'

GWC has had experience in rendering logistics services for international sports meets. It coordinated the logistics for the Asian Soccer Cup earlier this year and the International Amateur Athletics Federation’s World Indoor Championships in December 2010.

Among its other major accomplishments was providing logistics support for a waste recycling programme in partnership with Qtel.

One of GWC’s warehouses in Doha

Freight forwarding contributed most to the company’s revenues followed by warehousing and transportation. It posted a half-year 2011 net profit of QR30.54 million ($8.38 million), up 312 per cent over the same period in 2010. Revenues were QR191.4 million against QR42.9 million. In 2010 the net profit was QR51 million, an increase of 419 per cent. 'LVQ will further enhance the company’s revenue and net profit in the coming quarters,' said Menon.

'Throughout 2011, we will remain focused on making operational improvements and enhancements in marketing, client service delivery and expanding our service range across the organisation. These initiatives will have a meaningful impact on the value we provide to our customers, helping them to achieve their business objectives,' the official added.

Growth plans

'We have a strong business growth model and with the strong and robust economy of Qatar we are gearing for growth and expansion,' said Menon. 'We will be expanding our services to a number of Gulf countries in the next one year and hope to establish a stronger GWC presence across the Gulf.'

Over the past two years, GWC has won two industry accolades, one of which was the 2011 SCATA award of 'Best 3PL services provider.' Another award presented by Arabian Business Achievement Awards, Doha 2010, recognised it for being the 'Best Logistics Company.'