Jafza contributes significantly to the progress of the automotive sector
Jafza’s infrastructure and trade volumes are an attraction for industry giants.
The Jebel Ali Free Zone (Jafza), a leading trade and logistics hub in the Middle East, part of the DP World group, facilitated over 1.2 million metric tons (MT) of Dubai’s total volume of around 4.8 million tonnes of vehicles and transport products passing through the emirate in 2021. This equates to $12.4 billion, or more than a third of the total trade worth 31, $3 billion.
Jafza has largely contributed to the progress of the automotive industry in the country. Its unique logistics infrastructure and global trade network, in particular, have ensured the steady growth of the automotive sector, connecting African, Asian and Middle Eastern traders to consumers around the world.
With companies from 70 countries and a workforce of nearly 8,000, Jafza’s infrastructure and business volumes are an attraction for industry giants such as Ford, General Motors, Honda, Hyundai, Nissan , Mitsubishi, Volkswagen and Volvo. The free zone’s multimodal ecosystem connects traders to over 260 airports via Al Maktoum International Airport and over 150 ports with direct services to Jebel Ali Port. It also gives them access to the GCC road network and the Etihad Rail which will enter service in 2023 and counts the Jebel Ali rail terminal among the first stations in its network.
Additionally, smart business solutions and benefits such as 0% VAT and corporate tax help businesses operate efficiently as international fulfillment centers.
Integrated Automotive Logistics: Although Jebel Ali Port is an integral part of the general automotive trade, it regularly contributes to the export and import of used cars. Thus, enhancing Dubai’s status as a major export hub for used cars in the UAE and the MENA region. Due to a constant demand for used cars, according to a report by Ken Research, the used car market in the UAE is expected to reach MAD 112 billion in revenue by 2025. As long as this demand exists, DP World , through its assets in the UAE, will continue to record tremendous growth in the coming years for the automotive sector.
The state-of-the-art roll-on, roll-off (RoRo) terminal at Jebel Ali Port plays a pivotal role in this continued success. The port has RoRo berths that can accommodate up to 1 million car equivalent units (CFU). It can also store up to 27,000 CEUs in its dockside yards, including a multi-story facility, the largest in the region. Adjacent container stuffing and stripping services are also significant benefits for partners.
Prior to import or export from the port, car manufacturers, dealers and importers can also utilize the Pre-Delivery Inspection (PDI) facilities in Jafza for services such as installation of light accessories, storage vehicles, washing, prevention of aging and installation of the audio system.
Additionally, including Third Party Logistics (3PL), Container Services, and Automated Customs Clearance and Brokerage, has created a one-stop-shop ecosystem in Jafza that caters to importers, exporters, and manufacturer distribution. original equipment (OEM).
Although physical infrastructure has been the foundation of Jafza’s success, it has been supported by bespoke solutions provided by DP World Logistics to optimize supply chain operations for automotive traders.
These include fourth party logistics (4PL) activities and track and trace technology to enable transparency and simplicity in logistics activities, trade finance, food and reverse logistics. Global automotive customers can leverage DP World’s global presence in 78 countries, including dedicated RoRo facilities in Cyprus, Romania, Germany and Dubai.
The acquisition of Syncreon by DP World in July 2021 also enables the company to provide end-to-end solutions to freight owners. Syncreon operates in high-growth automotive industries with services such as material receiving, warehousing, inventory management, kitting/sequencing for in-line supply, and packaging for export.
DP World’s European network comprises 12 inland terminals, strategically located in the economic centers of Germany, Switzerland, Belgium and France. DP World also provides trimodal connectivity between inland terminals in major European ports with 60 weekly barge services and over 100 rail connections.
Connecting businesses: The UAE accounts for 21% of Africa’s automotive trade, which equates to approximately 7 billion tonnes of freight per year.
Africa is a continent of 54 countries and 1.4 billion people. Its diverse population is also particularly young with a median age of just 20 and growing rapidly. By the end of this century, Africa could be home to more than four billion people. New connections within the region and with the rest of the world can help Africa capitalize on its demographic boom, creating a new center of global automotive demand.
Specifically, the UAE plays an indispensable role in the spare parts trade, an urgent and operationally complex logistics activity. Rapid industrialization and accelerating urbanization across the African continent have resulted in the continent’s roads today being home to around 22 million vehicles. This has led to a surge in demand for spare parts, thereby increasing the demand for DP World’s services.