World trade has never before been as sizable, highly-valued and complex as right now. The predisposition rests no more towards trade between developed countries or between the developed world and the outsourcing giant China. The past few years have seen the developing world emerge as a significant consumer market, marking the new phenomenon of South-South trade. Medieval period trade routes such as the “Silk Road” have gained prominence in the modern world for the first time within the developing world. Governments around the world and more so in the trading hubs, are making exceptional investments in improving the transport infrastructure across seaports, airports, road corridors and railways.
Amidst all of this, we saw a vital logistics opportunity in the trading hubs of Middle-East, North Africa and South East Asia (MENASEA).The logistics industry has not yet grown at the pace of world trade in terms of its development, and this is where the opportunity lies to become a part of the sure growth in this industry.
With great pleasure, I bring to you Gulf Pinnacle Logistics. In a short span of less than a year since its establishment,the company has closed two acquisitions and positioned three more in the pipeline. In this modest period, I am proud to admit that we have managed to line up assets across an entire spectrum of business models in the logistics industry where we see value. Further growth from here will be taken with a combination of an expansionary and a complimentary yardstick.
Our strategy is to become an integrated logistics player in the medium-scale segment in the MENASEA region. This strategy was formulated based on a keen analysis of an interesting phenomenon we observed in this sector. We saw a huge disparity in the models of the large-scale and medium-scale companies in this industry. While integration is the premise of a large-scale player, fragmentation and non-substantive sizes have majorly governed the medium-scale segment. Perhaps such a disparity emerged because trade was the mainstay of MENASEA economy for generations, and thus attracted many players over the years. With our strategy, we see the time ripe to integrate in the high growth medium segment.
At Gulf Pinnacle, we strongly believe that a horizontally and vertically integrated platform is key in the logistics sector to create a self-sustaining and diversified ecosystem. It also enables a focus on capturing volumes with economies of scope and network, given a range of services, offerings and routes under one platform. Such an integrated platform has the potential to mirror the likes of DHL in the medium-scale sector of MENASEA.
We intend to have a societal inclination in addition to an able investment strategy. Quality and seamless logistics offerings are benefits of an amalgamated framework encompassing a multitude of business models, achieving high efficiencies. Removing the luxury from such benefits for the mass market is our aim at Gulf Pinnacle by making integrated offerings available to everyone regardless of their income levels or size of operations. We are committed to bring a high-quality platform catering to every section of the market.
Dubai is staging the World Expo in 2020, which is considered to be the biggest logistics event in the Middle East, Africa and South Asia region. Operating during this opportune time when Dubai will see an increase in logistics activities pre-Expo, we feel excited to be in the position to ride on this wave. I see Gulf Pinnacle creating jobs and opportunities around increased activity due to the upcoming Expo.
“I’m pleased to announce that the two flagship acquisitions have contributed to set us off to a good start”. These two assets have given us an exposure to the world-renowned Jebel Ali Port. As GPL grows, it intends to reinvest in the shipping logistics across the MENASEA region, since the shipping industry is still a major contributor to the economies here. We have a solid immediate pipeline that will give us exposure to the air cargo logistics, road transportation and courier, all of which we see as attractive investment strategies in the logistics industry. Regionally, we started off with UAE and will now see more region-wide presence in these pipeline assets.
On behalf of the Board of Directors, I would like to thank our shareholders in believing in our new vision and helping us embark on our first two assets very rapidly. The entire Gulf Pinnacle Logistics Team is dedicated to making this platform a great success. We look forward to your continued support in this initiative we believe very strongly in.
Wael Zeenni| Chairman