Life & Logistics Spring 2009 — NO 2 NEW FRONTIERS How Aramex is placing logistics at the heart of the new economic landscape Delivering Hope Why the tragedy in Gaza inspired a new era in community activism TRADING PLACES E-commerce delivers in the teeth of the credit crisis Log istics is the infrastructure of life. In today’s world, nothing can take place without some form of logistics. At Aramex we are at the heart of this exciting industry which is as old as civilization itself. We launched The Explorer to introduce you to our world, a world of racing against time and challenging the odds so the essential goods and services in your everyday life are always there – where you need them and when you need them. New frontiers of business Welcome to the latest issue of The Explorer. We are, it is fair to say, living in extraordinary times. The unprecedented economic realities the world is now facing have concentrated business leaders’ minds in every industry and every country; and no one can claim with any certainty that they are unaffected by the results of the credit crunch – whether in terms of declining demand for products or services, or a reduction in funds for new investment. When combined with global challenges, such as energy resources, climate change and the pressing problems of water supply, the political and corporate solutions developed in 2009 are sure to dictate the course of the next two decades. These are challenges we shouldn’t shy away from, however. Indeed, there is now a genuine opportunity for innovative solutions, creative thinking and new ideas to surface, all of which have the potential to not only drive the recovery but change business practices irrevocably. The logistics industry, of which we are at the heart, has the potential to foster such improvements. By increasing efficiency in the supply chain – through new technologies, improved services and greater transparency – we can facilitate trade, while at the same time reducing the impact on the environment. Aramex has long been committed to exploring the new frontiers of best practice in these areas, but never more so than now. That is why “New Frontiers” is the theme of the first Explorer magazine of 2009. Over the coming pages, we hope you will be inspired by stories of personal achievement, business excellence and scientific advancement in areas once considered beyond our reach – and we believe the current global situation will only be overcome by a similar pioneering spirit. Best regards, Fadi Ghandour Founder & CEO, Aramex 1 Navigator Words/article 100 500 1,000 a b You are here Content Frontiers 1 Title Story Demand and Supply Tackling the problems of water resources, understanding GPS, meeting Generation Z and going green for carbon neutrality. p 4 In Focus Logistics Lifestyle 2 Has the Penny dropped? Times They are a-Changin’ The boom in e-commerce has changed retail The growth of online music downloads has forever – and the current global crisis is set to caused a seismic shift in the industry. Can CD solidify the trend in online shopping. retail survive the digital age? p 14 p 16 The Interview Photo Essay 3 Beautiful South Colour of Nature How Maxime Chaya trekked to the South Pole Japanese photographer and green campaigner unassisted – dragging everything he needed for Takashi Amano exhibits his landmark work in his 1,130km journey in a sled. Qatar – with the help of Aramex. p28 p 32 2 2 c d Personal Best Logistics and Business The Running Man Driving the Recovery Aramex-sponsored extreme marathon runner, With its emphasis on driving efficiency in the Salameh al-Aqra, once again heads for the supply chain and promoting trade, can logistics Moroccan hills in the Marathon des Sables. offer a way out of the recession? p 10 p12 Behind the Scenes Human Excellence Delivering Hope Lightning Bolt In January, Aramex successfully harnessed the The fastest man in the world has his sights set unprecedented levels of public concern across on even more records in 2009 as he looks to the region for the inhabitants of Gaza. rewrite the sprinting history books again. p 20 p2 4 Natural World Famous Explorers Published by: Aramex International P.O. Box 960913 Amman 11196 Jordan Telephone: +962 (6) 551 51 11 Fax: +962 (6) 552 74 61 [email protected] The Great Migration Charles Darwin www.aramex.com Can the annual migration of millions of birds It’s now 150 years since the publication of the up the Great African Rift Valley teach us more seminal On the Origin of Species, which first This magazine is not for sale and is distributed about natural navigation systems? offered the theory of natural selection. free of charge to businesses, public offices, p 38 p 40 organizations and individuals with an interest in transportation and logistics. 3 b 1 Frontiers Frontiers takes a quickfire look at the latest developments in the logistics field and the world of Aramex. Imagine walking up to the sink to wash your face in the morning only to realise that there is no water coming from the tap. You immediately head for the roof to check the tanks, only to discover a lone bottle of water in its place – it’s barely enough to wash the dishes, never mind yourself. Sadly, that’s exactly the case for millions of people around the globe who are managing to survive on about three glasses of water a day. The minimum requirement is considered 20 litres per person, to be used to bathe, drink, cook, do laundry and offer proper sanitation in the home. Whether it is the lack of natural resources, natural disasters or political conflicts and wars, critical water shortage is an issue that threatens entire communities. Jordan, despite 92 per cent of the land being classified as desert, is considerably better off than those countries, with careful distribution of both natural and imported water resources providing for the country’s domestic, agricultural and industrial requirements. However, according to Dr Hazim al-Naser, a member of Jordan’s Parliament and a former Water and Irrigation Minister, the apparent abundance is more than a little misleading. “The kingdom always had a water scarcity problem, but it has got worse over the last few decades,” he explains. “Water demands have risen during the last 30 years, with a 25 per cent rise in the population, and recent winter seasons not offering much rainfall.” Indeed, the rapidly growing population, estimated at around six million people, combined with the depletion of the natural water aquifers in places such as Azraq and the decreasing rainfall, mean Jordan is heading towards the summit of the global water poverty league table. With 100-150 cubic metres annually available per capita, it is seriously approaching the disease-inducing shortage zone, let alone the inevitable limits that water shortages can place on both agricultural and industrial development. Jordan’s efforts to solve its water supply problem The government has considered a range of long-term solutions to develop water supplies that aren’t dependent on increasingly unpredictable rainfalls or groundwater supplies, and without the need to seek water from similarly-pressed neighbours. “In 2002, the government started a long-term investment programme that includes 63 water and irrigation projects to be implemented before 2015,” Dr Hazim says. “Some are already in operation, like Wahdah Dam between Jordan and Syria, Mujib Dam in the south and the Samrah Waste-Water Treatment Plant, that caters for both Amman and Zarqa cities.” The major infrastructure projects are all efforts to make maximum use of limited water supplies, and have all been planned since the late 1980s, with the Wahdah Dam, a joint Syrian-Jordanian project, the first to see the light of day. In order to assure that Jordan receives its share of the Yarmouk Gallo Images/Getty River supply, and to help save the depletion in the river’s basin, what became known as the “Unity Dam” was put into operation in 2006. The first stage of a $90-million project that could ultimately hold 225 million cubic metres – of which 80 million cubic metres will go to Jordan – is now in operation, with a current capacity of 15 million cubic metres. Disi Water Conveyance Project Jordan has been using water from the Disi aquifier, located in the Demand southern part of the kingdom, since 1980. It annually provides about 16.5 million cubic metres for domestic use in the port city of Aqaba and about 75 million cubic metres for agriculture in the surrounding area. A massive new engineering project, albeit one that has been debated for over a decade, will transport 100-120 million cubic metres annually from the Disi water to Amman, some 325km away. The near $1-billion project &supply is one of the biggest of its type in the region, and has necessitated development funds from France and the World Bank. Turkish company Gama have secured the contract, and will start the four-year work of building the pipelines – using 250,000 tons of steel – and digging the With some of the scarcest water 55 wells by the end of 2009. It is, according to then Minister of Water resources of any country in the world, Raed Abu Saud, “a radical solution to Jordan’s chronic water problems.” Jordan is looking to radical solutions Red Sea-Dead Sea Canal A joint Israeli-Palestinian-Jordanian committee continues to study the to ensure adequate supply economic and environmental effects of a canal that would connect the Red 4 “The Red-Dead Sea and the Dead Sea.