Lagardère Travel Retail has appointed GAC Dubai’s Contract Logistics team to handle a range of goods sold at duty free stores at airports in Saudi Arabia and the future Abu Dhabi Midfield Terminal Complex (MTC), which is finally due to open at the end of 2019.

Under the terms of the agreement 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.

This will be for goods including chocolates, fine foods, fashion, beverages, electronics, cigarettes and cigars, personal care, perfumery and make-up.

Both companies expect to manage approximately 17,000 skus across various product types and will also handle the formalities required for the storage and handling of some beverage categories on behalf of Lagardère Travel Retail.

LONG-TERM RELATIONSHIP

Ronald Lichtenecker, GAC Dubai’s Managing Director said: “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.”

Neil McMaster, GAC Dubai’s General Manager — Contract Logistics commented: “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.

“It also recognises our willingness to invest in scalable solutions that allow clients such as Lagardère Travel Retail to manage and grow their business. 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 said the partnership would enable the company to reinforce the ‘fluidity and reliability’ of its regional supply chain, which is key to delivering excellent service to customers.

Lagardère Travel Retail, which will run the liquor, tobacco, confectionery and fine foods concession at the Abu Dhabi MTC, also has a strong DF&TR presence in Saudi Arabia operating in Dammam (two stores), Jeddah (two stores) and Riyadh (two stores).