Maersk inks agreement to open second warehouse in UAE

Maersk Kanoo UAE signed an agreement with Dubai South, the largest single-urban master development focusing on aviation, logistics and real estate, for its new warehousing and distribution (W&D) facility in Dubai.

With its second warehousing & distribution (W&D) facility spread over 15,000m² at Dubai South, the Danish company strengthens its network in the United Arab Emirates (UAE).

The ‘Maersk Integrated Logistics Centre DWC’ facility in the Dubai South Logistics District, which will become operational later this month, will have a capacity to cater to 15,000 pallet positions and 10,000 bin locations, while it will also serve as a fulfilment centre.

Following the inauguration of the first W&D facility in Dubai at JAFZA earlier this year in March, Maersk will more than double its total footprint in the UAE with the new fulfilment centre.

Christopher Cook, director at Maersk UAE, commented, “Upon carefully studying different possibilities, we zeroed in on Dubai South for our new fulfilment centre considering its strategic location connected to Al Maktoum International Airport (DWC) and the mainline port and hub of Jabal Ali. This will allow us to further build on our air-sea hub operation, which has become increasingly important while also satisfying the right balance between speed and cost with tremendous flexibility.”

According to a statement, the new facility will allow Maersk to operate a hybrid model of a bonded and non-bonded warehouse and truly fulfill different customer needs, including that of a fulfillment centre for end-to-end e-commerce solutions.

The Copenhagen-headquartered ocean carrier said it will benefit from reduced handovers of its cargo through its journey, leading to potentially faster turnaround times, higher visibility, better control and more predictability of its supply chains.

Mohsen Ahmad, CEO of the Logistics District, Dubai South, stated, “Our mandate at Dubai South is to attract top international players to the Logistics District with the aim of boosting the logistics sector and diversifying the Emirate’s economy in line with the various government initiatives and strategies. In reinforcing Dubai’s status as global trade and air-freight logistics hub, we will spare no effort to offer Maersk optimal solutions to further advance its air cargo operations as well as support them in their growth journey.”