1. IMPORTANCE OF VOCATIONAL TRAINING IN ROAD TRANSPORT “LAS REGION “ Istanbul, 11 May 2011 Bahiej Al-Biqawi Director, Supply Chain Management, Almajdouie Group, KSA (c) IRU Academy 2011

2. - One of the most growing sectors; it goes in line with any growth regardless from where it comes. Logistics and Transport Sector Logistics and Transport Sector 2 - Introduction of new business lines (i.e. Warehousing, Packaging, Door to Door Distribution, etc.). - Transport companies are more of family businesses with wide range of small size ones. - The Arab world highly depends on drivers from Non-Arab countries and some with no experience sometimes. - The low perception of driver profession looked at as low and less important. - High unemployment rates among many of the Arab countries.

3. Training… Is it important? An average of 17 Saudi Arabian residents die on the country’s roads each day, a report by the Kingdom’s General Directorate of Traffic has revealed. An average of 17 Saudi Arabian residents die on the country’s roads each day, a report by the Kingdom’s General Directorate of Traffic has revealed. Estimated that 8,000 people are killed and 32,000 hurt on Egyptian road accidents each year. Estimated that 8,000 people are killed and 32,000 hurt on Egyptian road accidents each year. By the year 2020 forecasts suggest that, as a cause of death, road accidents will move up to third place. By the year 2020 forecasts suggest that, as a cause of death, road accidents will move up to third place. $60 Billion is the cost of accidents in the Arab countries. $60 Billion is the cost of accidents in the Arab countries. 3

4. Road Accident Costs by Region (in US$ Billion) Region Regional GNP 1997 Estimated Annual Accident Costs GNP (%) Cost Africa3701.03.7 Asia24541.024.5 Latin America/ Caribbean 18901.018.9 Middle East 4951.57.4 Central & Eastern Europe 6591.59.9 HMC22,6652.0453.0 Total518.0 In 2005, the total cost of accident was 815 Billion. In 2005, the total cost of accident was 815 Billion. 4

5. Accidents All Over The World SyriaSyria EgyptEgypt Saudi ArabiaSaudi Arabia A REVIEW OF GLOBAL ROAD ACCIDENTS FATALITIESA REVIEW OF GLOBAL ROAD ACCIDENTS FATALITIES G D Jacobs & Amy Aeron-ThomasG D Jacobs & Amy Aeron-Thomas No. of accident fatality in KSA in 2009 was 6,400. 5

6. SyriaSyria EgyptEgypt Saudi ArabiaSaudi Arabia 6 Accidents All Over The World A REVIEW OF GLOBAL ROAD ACCIDENTS FATALITIESA REVIEW OF GLOBAL ROAD ACCIDENTS FATALITIES G D Jacobs & Amy Aeron-ThomasG D Jacobs & Amy Aeron-Thomas

7. We need to… Have safer roads & reduce the no. of accidents. Have safer roads & reduce the no. of accidents. How to do it? 7 Deliver on time and have better Customer Service. Deliver on time and have better Customer Service. Retain drivers. Retain drivers. Generate more money to the business. Generate more money to the business. Have satisfied drivers and less work-related stress. Have satisfied drivers and less work-related stress.

8. 8 To invest properly, the employer must provide the employer must provide training as one of the needed tools for training as one of the needed tools for employees to get the job done. Training

9. 9 The sharing of information through training is our most valuable tool to develop our most our most valuable tool to develop our most valuable asset… our Employees. Why Training?

10. 10  The industry and government in the United States spend approximately $90 Billion each year on employee training and education.  Average Japanese companies spend about 6% of budget on training. Examples of Training Investment

11. 11  A study of major automobile manufacturers found US automakers spend about 40 hours training new employees compared to 300 hours for Japanese automakers. Examples of Training Investment  Motorola’s CEO required all divisions to spend at least 2% of budget on training. Over the next 7 years, profits increased by 47% and it was estimated that each $1.00 in training yielded $30.00 in return.

12. 12 Employers:  How can I be sure the organisation will benefit?  Training is so expensive – how will I know if it has been effective?  Will this affect the goal of developing and implementing standards and protocols for the organisation?  “If I train them, they’ll leave.” How do we perceive training?

13. 13 Individual:  “How is that related to what I do?”  “I’m good at my job anyway, I have no time.”  “I suppose that’s my weekends shot for months!” (Waste of time) (Waste of time)  “Are they trying to get rid of me?” Attitudes to Training

14. 14 1. Respond to technology changes affecting job requirements. 2. Respond to organizational restructuring. 3. Adapt to increase diversity of the workforce. 4. Support career development. 5. Fulfill employee need for growth. Why Do We Need Training?

15. 15 Benefits of Training - Individuals  Do job more efficiently – learn new methods.  Professional approach to work, engaged in best practice routines.  Personal satisfaction – felt valued.  Recognized qualification to add to CV.

16. 16  Keeps Good Employees.  Expands Your Offerings & Business.  Provides Better Customer Service.  Makes you MONEY! Benefits of Training – Business

17. 17 “Thanks to my company, I become a truck manager!” Can we change our perception about training?

18. 1. Needs Assessment 2. Developing & ConductingTraining 3. Evaluating Training Training Process Model 18

19. “Tell me and I forget, teach me and I remember, involve me and I learn.” - Benjamin Franklin How Do Employees Learn the Best? 19

20. Look at training as an investment. Look at training as an investment. Compare the costs & time of training to those of lost of productivity & waste. Compare the costs & time of training to those of lost of productivity & waste. Factor in the potential long-term gains from having trained, highly-skilled personnel & well-tuned systems. Factor in the potential long-term gains from having trained, highly-skilled personnel & well-tuned systems. Start by assessing your situation. Define your needs. Start by assessing your situation. Define your needs. Create a plan. Ask for help. Create a plan. Ask for help. Training... Make It Work For You! Time is Money. Spend both wisely. 20

21. ALMAJDOUIE Logistics (Dutch Partner) (Chinese Partner) (British & Italian Partner) Almajdouie LogisticsAlmajdouie Logistics (Japanese Partner) MTR MTA MHLCFC MLD RPL MDR MPSC MAXX 21

22. Almajdouie Logistics… Almajdouie Logistics… at present and the future! at present and the future! Equipment & Asset200720082009 Trucks 120016002200 Trailers 1,2002,0002,400 Reach Stackers 1025 Forklifts 40169 Products / Container Terminal 310,000 m21,000,000 m21,600,000 m2 Manpower 3,0004,0004,600 22

23. Accident History Year Trucks Trucks Accident Rate (%) Accident / Truck / Year 20051,0000.3 20061,2000.25 20071,2000.2 20081,6000.175 20092,2000.15 We invested in training. 23

24. Almajdouie Efforts – As a Result. 24

25. Middle East Logistics Institute (MELI), established in Saudi Arabia in 2010 by Almajdouie Group, envisions being the leading-edge academic institute in the region. MELI seeks to build globally competitive logistics capacities to the business community in the Kingdom of Saudi Arabia through developing and improving both the awareness and logistics skills of young professionals, practitioners, managers and executives, providing them with specialized training in Logistics and Supply Chain Management and obtaining levels of professional certifications in the field of logistics. MELI 25

26. MELI’s International Partners 26 Michigan State University (MSU) International Road Transport Union (IRU) The Chartered Institute of Logistics and Transport (CILT)

27. MELI Achievements   10 Advanced Short Courses in Supply Chain Management.   First accredited SCM certification program in KSA (on three levels).   First IRU-Accredited Institute in the Middle East for ADR.   First IRU-Accredited Instructors (7) on ADR last September 2010.   IRU-Accredited Instructors (3) on CPC Manager April 2011   Training Dept. (soon to be come Drivers Training Center). 27

28. MELI Future Plans  CPC Training for Drivers and Managers to be conducted.  Drivers Training Center to be established: - Latest Simulator. - Latest Driving Range to be developed. - Professional trainers and materials.  International Accreditation Standards to be implemented. 28

29. Do Less, Save More. 29

30. (c) IRU Academy 2011