Your SlideShare is downloading. ×
Velocity Introduction
Velocity Introduction
Velocity Introduction
Velocity Introduction
Velocity Introduction
Velocity Introduction
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Velocity Introduction

2,312

Published on

Published in: Business, News & Politics
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
2,312
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Overview: Velocity Investments and Logistics Services is based in Abu Dhabi, and was recently established to act as an asset manager for opportunistic investments related to logistics, warehousing and cargo transportation industry in the Middle East and Africa region. Velocity Investments and Logistics Services LLC is wholly owned by SinoGulf Real Estate Investments LLC. Velocity is a multi-faceted management company with industry specific skills in industrial warehousing, real estate asset management, company turnaround acquisitions and mergers within the logistics industry, specifically within the Middle East and Africa Region. The Velocity team is made up of seasoned professionals and headed up by a 20 year veteran of the logistics and transportation industry. The Logistics Industry The worldwide contract logistics industry grew by nine per cent to just over $140bn in 2007, according to new figures published in Transport Intelligence's latest benchmark report, Global Contract Logistics 2008. The logistics sector was helped in Europe by strong low double-digit growth in the UK, Europe's largest market. Finland, benefitting from its strategic location as a gateway to Russia, was also one of the fastest-growing markets. All the markets in the Central and Eastern European region expanded significantly faster than their western counterparts, as foreign investment in manufacturing facilities and the trend towards 'near- sourcing' continued. Growth rates in Germany and France were solid as the manufacturing and retailing sectors in both countries held up well. So far, the slowdown seems only to have affected the US market to any degree. That country's contract logistics market grew by just under seven per cent in 2007 which represents a significant drop from its 10 per cent plus growth in 2006. The logistics and transportation industry in the Middle East and Africa region is poised for amazing growth, despite a global economic downturn. quot;The world economy might be struggling but huge volumes in the region will continue to drive growth in the Middle East's logistics Industry,quot; Bengt Ekstrond, CEO of Gulf Agency Company (GAC). He went on to say: quot;With increasing cargo volumes and strategic location between the West and Far East, regional economies are developing world-unique transportation logistics infrastructure, which will eventually impact global economy in terms of trade and commerce.quot;
  • 2. The Market Opportunity According to regional analysts, investments in the regional logistics industry will reach $60bn (Dh220bn) in the next five years as new international companies set up offices and existing companies embark on aggressive expansions of their operations. Investments in warehouses alone, a key element in the logistics industry are expected to reach $50bn in the next two years as a result of both private and government funded developments. The market will be significantly impacted if the rumoured change in the Agency law happens in the UAE, which will then logically be introduced in surrounding markets. It may well be that the change in the UAE legislation will come initially through an amendment which will remove the exclusivity of agencies. This would have almost the same effect as legislation making it easier to change agents. When this change occurs, it will have a dramatic effect on the logistics industry in this region. Principle manufacturers will no longer have exclusive distributors in each emirate will to hold and finance stock and aftermarket parts inventories. When distributors are forced to compete, prices will be hit and distributors will demand the manufactures hold a central stock and parts storage for the country, and provide items on a JIT basis based on actual sales. As a result, all of the small redundant inventories being managed by small niche logistics players will disappear. Only the medium to large logistics players with regional networks will be in a position to hold and distribute inventories for the primary manufacturers. Market Opportunity: Private Equity The major area of opportunity within the Logistics and Transport industry in this region is Private Equity investments. Considering the number of logistics and transportation companies that exist today within the Middle East and Africa region, and the anticipated growth the logistics and transport industry combined with the subsequent growth of companies coming to the region, competition will be increased and margins will be hit. Typically, this is the prelude to consolidation with-in the industry. Private equity investments will be focused on companies that when combined, become a regional network that allows for linking the regional markets with the rest of the world.
  • 3. Our vision of this network has the following nodes: Targeted Port Cities in the GCC: • Abu Dhabi • Bahrain • Doha • Dubai • Fujairah • Kuwait • **KSA **Note: These chosen operating locations are based on transport and logistics positioning that allows for rapid distribution to all large population centers in the region. The Kingdom of Saudi Arabia will be handled by a Logistics Partner Company. Targeted Services: Container Freight Services (CFS) Trade Finance – Shariah compliant Freight Forwarding • Sea Freight/Shipping Services • Air Freight • Express Delivery – Just In Time • Aircraft Charter • Exhibition Services Warehousing • Bonded • Climate Controlled • Cold Storage • Hazardous Materials • Material Handling • Packing, Marking, Labeling Supply Chain Management • Warehouse Logistics • Logistics Optimization • Service Improvement • quot;Parts Bankquot; Multi-User Inventory management • Inventory Planning Transport Management • Freight Forwarding • Freight Cost Reduction • Freight Cost Benchmarking
  • 4. Inbound Shipment Management • Velocity is well positioned to find opportunistic private equity investments because of the team’s experience. The Velocity tem will look for and identify Logistics and Transport companies that are either in need of turnaround and expansion value creation, or the potential to acquire and merge smaller companies into a larger whole, creating value through economies of scale and larger capacity. Vision of our future Velocity will focus on making strategic acquisition investments in logistics companies in order to create value through a regional network of warehousing and distribution points, backed by a full set of services. The final network and asset package will become an integrated regional network and a major international logistics entity. Principal investment objective The principal investment objective of the Company is to make opportunistic private equity investments focused in the UAE, but with opportunistic investments in MEA locations with the goals of: (i) maximising total returns from a combination of income and capital appreciation, (ii) the generation of long-run, contract backed, sustainable revenue streams that can easily be securitised and (iii) evaluating possible partial Exit Opportunities via either a conversion to a Public Joint Stock Company, the partial securitisation of established revenue streams or partial private sale. The Velocity Team: David Ogden David is a twenty year veteran of logistics and transportation industry in this region, with a large portion of his career at FedEx. He was the Managing Director and Chief Operating Officer for FedEx Logistics in Dubai. In this capacity he was responsible for the start-up of the regions first FedEx Logistics subsidiary, which is responsible for third party management of customers supply chains. Other services included third party warehousing, inventory management and visibility, warehouse management, and transportation management. Prior to that David was the Managing Director of Regional Sales for FedEx Express in the Middle East, Indian Subcontinent and Sub Sahara Africa. In this position he was responsible for the sales activities and development of 8 District Sales Managers and 85 Sales Professionals across the Middle East, India and Africa regions. Robert Waugh BSc MBA Robert joined SinoGulf in 2006 from PwC Advisory Services in Abu Dhabi where he worked as a manager in the corporate finance team. Previously Robert spent 7 years in operations as a Senior Supply Chain Manager at Unilever South Africa.
  • 5. While at Unilever he gained extensive industrial experience in operations & logistics management, procurement & inbound supply chain, capital projects, engineering & maintenance, change management and organisational restructuring. Hussain S F Al Awlaqi BSc Hussain is one of the founders of SinoGulf; he was previously a partner with The International Investor (TII) where he concentrated on capital formation, real estate Islamic securitisation and technology opportunities in the MENA region. Before joining TII Hussain worked for Abu Dhabi Investment Company where he specialised in Islamic investments, IPOs and mergers & acquisitions. Hussain has also held managerial positions at Abu Dhabi Gas Liquefaction Company and the Emirates Centre for Strategic Studies and Research. Andrew Clout BSc Andrew is one of the founders of SinoGulf; he originally moved to the Gulf in 1992 to join the newly formed The International Investor (TII) based in Kuwait, where he held several senior positions within the Product Development and Structured Finance groups. In 2000 Andrew transferred to TII’s UAE office, holding responsibility for its technology and e-commerce transactions within the region. In 2002 Andrew left TII to become the General Partner for Innoventure Partners. Chris Orrell BSc Eng MBA CFA Chris is an experienced Board-level advisor and financial analyst with extensive leadership experience in managing large professional teams. Chris is skilled in managing organizational operations by directing and coordinating activities consistent with established goals, objectives and policies. Chris has many years experience working in financially regulated and ISO self regulated organisation including 7 years with Pricewaterhouse Coopers (PwC) in London and the UAE. The Process: Velocity will at first focus on deal procurement, specifically in: Private Equity Mergers and Acquisitions in the Logistics and Transport Industry • Once private equity deals are secured, Velocity will concentrate on value creation through the use of staff experience in business turnaround processes and by targeting and acquiring other complementary companies for the purpose of creating a larger company with greater value than the sum of its parts. Initial investment analysis The initial investment process is a relatively detailed analysis performed by all relevant in-house SinoGulf parties, including financial analysts, Velocity management, and legal consultants. The depth of the analysis will be dependent on the time available prior to having to secure the investment. SinoGulf has the in-house knowledge and expertise to provide a sufficient level of analysis to enable decision making, on most asset types, within two working days.
  • 6. This initial investment analysis involves: • Ensuring the investment opportunity is consistent with the agreed strategy of the Company; • A top down review of the investment against current market conditions to understand the relative attractiveness of the opportunity to other assets held; • Review of the legal, development and operational conditions of the investment; • High-level discussion and documentation of the inherent risks of the investment; • A bottom-up financial model that captures the principal drivers of the investment opportunity and enables the key risks to be evaluated and more fully understood; • Discussion on the possible structuring of the investment to enhance the Company’s potential return; and • A brief report on the investment opportunity stating a recommendation as to whether the asset should be secured.

×