Lagardère Travel Retail has appointed GAC Dubai’s Contract Logistics team to handle a range of goods sold at Duty Free retail stores at airports in Saudi Arabia and the future Abu Dhabi Midfield Terminal Complex (MTC).
Under the multi-year agreement signed by the two companies commencing 1 March 2019, GAC Dubai will take care of the port haulage, receipt, storage, pick/pack, transportation, customs clearance and Federal Tax Authority documentation for goods including chocolates, fine foods, fashion, beverages, electronics, cigarettes and cigars, personal care, perfumery and make-up.
The companies expects to manage approximately 17,000 SKUs (stock keeping units) across a variety of product types and will also handle the formalities required for the storage and handling of some categories of beverages on behalf of Lagardère Travel Retail.
Part of GAC Dubai’s contract logistics facility at Dubai South will be dedicated exclusively to the account, and a G + 5 interlock mezzanine deck with multiple aisles and shelves is being constructed for better product segregation and picking.
Approximately 3.5 million picked units of goods are expected to be handled by GAC Dubai every year under the contract.
“This marks the beginning of a long-term relationship with a world leading duty-free operator, which is now expanding in the Middle East,” says Ronald Lichtenecker, GAC Dubai’s managing director. “It is an excellent fit with GAC Dubai’s long-term vision for its contract logistics business to move into specialised storage and handling operations.”
“This is Lagardère Travel Retail’s first warehousing venture in the region, so the awarding of a long-term agreement is testament to the strength and knowledge of GAC’s management and staff,” adds Neil McMaster, GAC Dubai’s general manager – Contract Logistics.
“It also recognises our willingness to invest in scalable solutions that allow clients such as Lagardère Travel Retail to manage and grow their business,” he said. “Strong bonds have already been formed between both companies and we look forward to strengthening them further over the coming years.”
Vadim Motlik, Lagardère Travel Retail’s UAE CEO, says: “We are delighted to be starting this new partnership with one of the strongest logistics operators in the Middle East. It will enable us to reinforce the fluidity and reliability of our regional supply chain, which is key to delivering excellent service to our customers.”