Adoption of sustainable practices and innovative technology to define company’s business strategies
Warehouses in Qatar are embracing sustainability as the Middle East looks to bolster its position as a global trading hub. In this contribution, the GAC Group looks at how sustainable warehousing infrastructure and operations boost its position as a market leader in contract logistics.
Qatar has witnessed robust growth in its logistics and warehousing operations over the past few years: a trend that looks set to continue this decade. According to a research report by Invest Qatar, Qatar’s logistics market is forecast to lead the way in the Gulf Cooperation Council region with a compound annual growth rate of 6.2% between 2020 and 2026.
The country’s logistics and warehousing sector is being driven by expansion in global e-commerce, improved infrastructure and greater industrial activity. What’s more, ahead of hosting FIFA World Cup 2022, it massively expanded and improved its logistical services and infrastructure with smart controls to prevent excessive usage of resources.
Push for sustainability
However, that growth must be tempered with measures to reduce the negative impact of business on the planet looming larger. Any expansion of warehousing and logistics operations must factor in sustainability – particularly in a region that has been championing the adoption of sustainable practices and innovative technology to enhance business strategies.
“Sustainability is now a crucial element of today’s modern logistics market. By incorporating green technology into operations, logistics providers can improve productivity and reduce costs, while demonstrating a commitment to a sustainable future – something global stakeholders are increasingly looking for,” affirmed Henrik Althén, General Manager, GAC Qatar.
In December 2022, GAC Qatar opened its new 27,000sqm multi-user contract logistics facility and office building in Ras Bufontas Free Zone. The building features 40,000 pallet positions, four temperature and humidity-controlled chambers, 500 m² of dedicated value-added services space and 2,000sqm of mezzanine storage.
The warehouse was built with sustainability at its core, in terms of building materials, methods and technology, and is Global Sustainability Assessment System (GSAS) certified. Using 100% recycled water from in-built storage building air coolers, it also boasts energy-saving features such as environmentally friendly controlled thermal insulation, thermal transmittance technology, advanced building management systems and LED lighting with motion sensors.
Watershed moment
“The construction of this latest facility was a watershed moment for us,” added Henrik. “It demonstrates our Group’s commitment to provide sustainable and green logistics services in Qatar, throughout the wider Middle East region, and beyond.”
In line with the Group’s long-term vision to reduce its carbon footprint, plans are already in place to further improve the facility with solar panels, a sanitary wastewater treatment plant for irrigation, and a plantation and irrigation system that requires low water consumption.
“Creating an eco-friendly warehouse or logistics centre wasn’t just a box-ticking exercise for us. We explored the options available in the market, individually picking features and materials that would meet our warehouse requirements in a sustainable manner,” asserted Adrian Peiris, Business Manager for Contract Logistics, GAC Qatar.
Boosting efficiency
“Even though we have just opened our facility, we are already looking at ways to boost efficiency by working with contractors to see how we can heat up water using the heat from the air conditioning units and convert heat from the compressors into power. Ultimately, we aim to produce all the energy we consume,” he continued.
Qatar is uniquely positioned as an attractive global trading hub with newly established free zones and world-leading port and airport facilities that foster sustainability. As Adrian noted, that makes it even more important for local logistics providers to embrace the national desire to promote sustainability, renewable energy and green innovations.
As the development of eco-friendly warehousing in the Middle East picks up pace, sustainable and efficient day-to-day operations at these facilities will become equally important.
FMCG
Qatar is a major hub for trading routes for fast-moving consumer goods (FMCGs) travelling between Europe and Asia: a sector that is increasingly lucrative amid a rise in global e-commerce and changing consumer demands. As these goods are highly perishable or have a short shelf life, safe and efficient warehouse operations are key to ensuring these goods make it to the market in a sellable state.
“Failure to pick and deliver the right products in the right state can lead to wastages in inventory and lost revenue for our customers. That is why our new facility has been designed to optimise our operational efficiencies as well as synergies between our various service offerings,” noted Adrian.
“For example, we can offload a 40 ft container full of pallets in just under 30 minutes. Our facility has been designed to ensure quick turnaround times for all types of products, particularly those that require special attention,” he further observed.
Cold-storage capabilities
That includes sustainable cold-storage capabilities to store perishable products efficiently and the Group’s proprietary Warehouse Management System GACware that keeps track of stock levels, expiration dates and product data in real-time, with alerts issued to customers during each transaction stage.
“Sustainability is built into our daily operations,” stressed Adrian. “We have an advanced docking system that requires a truck to be fully reversed up to the dock before the facility door can be opened. Our dock houses are built using materials of controlled thermal insulation and thermal transmittance properties and our air curtains are integrated with shutter doors. These help us control the temperature and humidity in the facility and reduce our overall power consumption.”
With just 3 million people living in Qatar, the country’s market size is proportionately small, although it’s growing steadily. But its position as a leading logistics provider serving three continents is only going to rise as customers look for efficient logistics services that can ensure their products reach their market safely, securely and quickly.
As customers look to partner logistics service providers that embrace sustainability, warehousing operators must adapt accordingly, either by incorporating green features into the infrastructure or operations.
