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, with effect from 1st March 2019 GAC Dubai will take care of port haulage, goods receiving, storage, picking and packing, transportation, customs clearance and Federal Tax Authority documentation for a wide range of goods. These include chocolates, fine foods, fashion, beverages, electronics, cigarettes and cigars, personal care, perfumery and make-up. The company 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 mezzanine deck area with multiple aisles and shelves is being constructed to facilitate 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.
Ronald Lichtenecker, GAC Dubai’s Managing Director, says: “This marks the beginning of a long-term relationship with a world leading duty-free operator, which is now expanding in the Middle East. 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, and the award of this long-term agreement is considered to reflect the strength and knowledge of GAC’s management and staff in Dubai.