UAE logistics industry lags behind in technology, UK firm says
Over-reliance on original documentation hampers movement of cargo, logistics executive says
The logistics industry in the UAE lags its Western counterparts in the use of technology, partly due to an over-reliance on original documentation, a UK-based executive says.
Paula Bellamy, regional manager of UK-based Allseas Global Logistics, says that despite the industry’s burgeoning growth in the UAE, not keeping up to speed with technology could be causing delays in moving cargo.
“Even though it’s very computerised over here, it’s not used to its full worth,” Bellamy says. “I think their idea is right but it’s not put into practice over here by the customs and the staff on the docks.”
The UAE’s logistics sector is forecasted to grow to be worth $27 billion in 2015, research firm Frost & Sullivan predicted last year. Free-zone trade, on the other hand, rose 7% in the first half of 2014, compared to the same period the previous year, as per data from the Federal Customs Authority.
When asked how the industry in the country compares with the UK, Bellamy points out that there tends to be an over-reliance on original documentation. “Nothing can be done on a copy. So that’s always a challenge. Sometimes the delay in the original documentation will cause for goods to be delayed in customs.”
Although she notes that things are improving technologically with Mirsal 2, the Dubai Customs online declaration and clearing system, she feels that an insistence on original documentation is hindering progress.
“The Mirsal system is good and the way it all worked electronically is very good,” she says. “However, it just needs to bypass that additional form of documentation, so everything has progressed but they’ve forgotten to omit using the documentation. So I feel we’ve got two systems running side by side.”
“It seems to be trying to go a little bit more streamlined in the computerised side,” Bellamy adds. “But I think they’re still coming up against the bigger challenges where the staff is used to using original documentation, so I’m hoping we’re going to see a more streamlined approach without documentation.”
“That’s how I’d like to see it go. I still think we’re probably a good five years away from that.”
Dubai Customs and DP World – one of the biggest logistics firms in the UAE – did not immediately respond to a request for comment when contacted by MEConstructionNews.com.
