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Successful NYK-GAC strategy boosts exports out of Dubai

United Arab Emirates: Monday, May 19 - 2003 @ 09:30

“This success is the fruit of GAC’s excellent relations in the local market, and the way they have been developed to create export opportunities from Dubai.” said Per Zachrisson, MD, GAC Dubai.

With a change in policy a year ago, NYK began focusing on exports out of Dubai to the Upper Gulf and Far East. Previously the demand on equipment had been to get it back to load-ports as soon as possible.

“The cargo balance has been weighted into the region in the past and there had been a growing inventory of containers built up over the years. By repositioning inventory back to the Far East, we were able to ensure that importing into Dubai had no negative revenue impacts on trade.” Said Ken Dinnadge, Business Manager – Dry Cargo. “Although cargo volumes have been growing, freight rates have fallen by close to 50% over the past 5 years, and there was a clear need for a strategy to boost income and reduce costs.”

Jointly with NYK in Dubai, GAC developed an export strategy for cargo into Upper Gulf markets and back to the Far East. Targets for this were set 12 months ago and in April, saw over 1,100 teu of export cargo sailing for destinations in the Far East and Upper Gulf. Costs have also been reduced by an estimated 30%.

“These figures have been possible also due to a change in Dubai’s trade and industrial profile. There are a growing number of industries setting up here. We are also filling slots for ports in Iran and Saudi Arabia, minimizing the empties to be back hauled.” Added Dinnadge.

The strategy is being extended to ro-ro cargo, which has been on the increase, a contributory factor being the growing number of auction centers choosing to locate in Jebel Ali. April saw an unprecedented number of NYK ro-ro calls. 17 pure car carriers on the US/Europe service called at Dubai with commercial cargo.

NYK presented an award to GAC Dubai in recognition of the agency’s outstanding efforts to increase export cargo from Dubai and the resulting improvement in NYK’s corporate result.

Providing services to the shipping industry is the core of GAC’s business. GAC represents the interests of over 3,500 Principals worldwide and in 2002 attended to more than 21,000 vessels. GAC is the local shipping agent with strong local partners and an international reputation, operating with offices on five continents. GAC also acts as correspondent for many reputed P&I clubs. GAC is a pioneer of innovative freight systems in the Middle East Gulf. Constantly striving to improve efficiency, GAC has added a number of new services to the more traditional ones of clearing and forwarding, project cargo handling, air freight, packing, warehousing and international moving. GAC Cargo Systems, with local offices in major centres throughout Asia, operates an extensive cargo services network for transport and distribution services. GAC also owns and operates a large fleet of marine craft, including AHT/supply vessels up to 5,350 bhp, utility boats, landing craft, tugs, barges and heavy lift equipment.

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Monday, May 19- 2003 @ 9:30 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

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