Michael Proffitt, CEO of DLC

DLC offers tenants a Free Zone environment and a variety of leasing opportunities, including renting full turn-key sites.

More than warehousing and cargo transportation facilities, DLC Office Park will offer tenants a range of modern amenities to supplement their daily working lives.

Dubai Logistics City (DLC), a state-of-the-art logistics center currently under construction, will become a leading transportation hub for South East Asia, Commonwealth of Independent States, India, Africa and the Middle East, says the project’s CEO, Michael Proffitt.

In a recent interview, Proffitt says companies that do not consider the Middle East, Asia and Africa as a serious business concern were neglecting a large proportion of their potential market.

“Any company that hasn’t got this region or the greater region in their business plan actually needs to reconsider their strategy,” he said, “because if you look at the growth in India and the Middle East, you will know they are economic powerhouses to reckon with.”

Phase 1 of the DLC project, which will be completed by the 4th Quarter 2008, is already in strong demand.

A giant free zone, it will cover all areas of logistics distribution, storage, air and sea freight transportation, customs and assembly lines.

Proffitt revealed: “DLC already has 130 companies ranging from global multinationals to regional and local concerns reserving a total of three and a half million square meters of land.”

The project is part of the wider U.S. $33 billion Dubai World Central (DWC), a development that will cover a massive 140 square kilometers upon completion, and will include the world’s largest airport, dedicated areas for real estate, aviation-related businesses, commercial and residential cities and DLC.

Supply and demand
Speaking of the dramatic economic growth within the region, Proffitt explained that a Middle Eastern center for logistics providers has been a natural progression for the international business community and that Dubai wasn’t just attempting to ‘outdo’ others in the market.

He said: “In Asia, Singapore and Hong Kong are well recognized as hubs – which is where Dubai is positioning itself now. It’s not a competition about who’s biggest – it’s the natural development following the growth of manufacturing in the Far East.”

Proffitt explained that DLC, which is described as a ‘holistic center for logistics service providers’ will stand globally “as probably the largest single logistics city in a concentrated form.”

“Within this region there are over two billion consumers from a number of growing economies and because of changes in the supply chains, the nature of the region and the expansion of consumer spending, the need for a hub in the Middle East has become apparent in recent years.”
He added that Dubai’s reputation for welcoming new initiatives and its geographic location had also been deciding factors in the project’s strategic location.

Describing the emirate as the ‘natural destination of choice’ for such a project, Proffitt said; “The obvious place in the Middle East, from a geographical, trade and freedom point of view is Dubai.
“We have everything coming together in that respect. And we’re able to link the port and the airport within a 10-kilometer radius of each other and within one customs bonded area. We have all the facilities necessary, together with the free zones, to offer companies this hub operation.”
Dubai is currently home to the world’s eighth largest port, situated in Jebel Ali, although Proffitt said it was only a matter of time before further progress raised its profile even higher.

“Jebel Ali is the world’s number eight container port and the largest in the region, but it is growing rapidly and that position will improve. With the airport development, we will have the largest airport in the world as well. Ultimately, what we’re doing is putting together a very strong value proposition. You’ve got the density in terms of shipping services, the density in terms of air services and it really can’t get much better than that.

“Essentially, we are creating a logistics community within a free zone so that all the supporting infrastructure will be within close proximity. We’d be bringing in the IT consultants, the logistics consultants, the logistics head hunters and all related office and commercial support in one area.”

Race for Space
But, stressed Proffitt: “This isn’t a rush to fill the land – we’re very particular on who we allow in. I’ve already gone on record saying that we don’t want to fill it within the next few years as we need room for new initiatives and expansions.”

He said that companies wanting to move their operations to DLC would have to prove their potential. “You’d have to prove to us that you were a company within the logistics supply chain with a reasonable amount of air freight volume.”

However, he then added; “We’re building shared-user facilities for smaller operators, We want all the companies in forwarding logistics to have an opportunity to be here. It’s not just for the big boys, but it is very focused on what your activities are. And, the caliber of DLC tenants would be controlled strictly through licensing.”

Part of the reason for such tough criteria, could be the need to assist in the vast amount of customs patrols required for the development.

“It’s mega-scale,” admitted Proffitt, who went on to say that the entire DWC project would eventually house more than 900,000 people.

“We’re in discussion with customs and the concern is not in the regulations, because they are already in place, but in the execution of those regulations.”

He concluded: “The key lies in how you create the environment. We have free movement between the airport and the seaport and we’re working with the Dubai Ports Authority to make sure it’s as efficient as possible. Dubai Customs are also looking into the possibility of e-clearance for this reason.”