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Home World News Middle East

AI, IoT and sustainability to define GCC cold-chain logistics, says industry executive

August 30, 2025
in Middle East
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AI, IoT and sustainability to define GCC cold-chain logistics, says industry executive
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In a global economy shaped by supply chain volatility, geopolitical shifts, and rising customer expectations, cold-chain logistics has emerged as both a pressure point and a strategic differentiator, according to Rodrigue Nacouzi, CEO of Transcorp International said.

Dubai-headquartered company specialises in first, middle and last mile services in the cold-chain logistics space.

Nacouzi told Zawya Projects that although the GCC is shielded from direct U.S. tariffs, the region still feels the impact through higher import costs and shipment delays, as many clients’ source materials from affected markets.

“This volatility forces us to think beyond cost containment,” he said. “We’re redesigning supply chains with agility in mind—using regional sourcing, diversifying routes, and applying AI-powered dynamic planning to mitigate delays.”

Tech-led transformation

Sensors and AI analytics are central to maintaining precision in temperature-sensitive shipments, said Nacouzi. He pointed out that IoT sensors have been integrated across fleets and storage facilities to track temperature, humidity, and location in real time.

“These aren’t just passive trackers – they’re connected to AI systems that analyse patterns, predict failures, and automatically trigger alerts or rerouting when a deviation is detected,” he said.

The emphasis, he said, is on anticipating and preventing disruptions instead of reacting to them.

He added that AI interprets millions of data points to optimise fleet use, reduce idle time, and ensure each shipment stays within its required thermal range.

“We’ve seen a measurable reduction in spoilage and fuel consumption, and it’s accelerated our preventive maintenance capabilities, increasing uptime and reducing costs,” he noted.

Rodrigue Nacouzi, CEO of Transcorp International

Sustainability and food security

Cold-chain operations are also playing a strategic role in reducing food waste in hot climates like the GCC. “Investments in solar-powered warehouses and hybrid/electric vehicles are already paying off. But the bigger impact comes from system-wide efficiency: fewer spoiled products mean fewer emissions from production to disposal,” he said, calling sustainability both a business and environmental imperative.

E-commerce pressures

The rise of e-commerce and fast-growing quick-commerce (Q-commerce) has added pressure on last-mile delivery with grocery and pharmaceutical customers expecting sub-two-hour windows.

“We’ve responded by decentralising cold storage via dark stores, investing in smaller, faster vehicles with compartmentalised cooling, and optimising delivery windows using predictive demand analytics,” Nacouzi said.

Regulatory and transparency challenges

While regulation in the GCC is strict, Nacouzi observed that cross-border harmonisation remains a challenge. “Building strong ties with regulators and standardising compliance helps reduce friction. Unified frameworks will be critical to scaling operations,” he said.

The Transcorp CEO noted that transparency has shifted from a compliance obligation to a key market differentiator. “In pharma, food, and luxury sectors, clients demand visibility from dispatch to doorstep. One way is using blockchain and end-to-end digital tracking to provide clients with real-time assurance that their shipment is secure, on-time, and compliant,” he said.

Emerging trends

Drone delivery is gaining attention but remains at an early stage due to constraints related to payload, maintaining cold-chain conditions in flight and airspace restrictions

“That said, we see targeted use cases emerging such as urgent vaccine delivery in remote areas or micro-fulfillment within dense urban zones. As drone tech matures and regulation catches up, we expect it to play a complementary role to ground fleets,” he said.

Looking ahead, Nacouzi said the next decade will be defined by the convergence of sustainability, automation, traceability, and predictive analytics.

He elaborated: “Sustainability will drive hardware choices, from EV fleets to biodegradable packaging. AI and automation will become embedded in every layer of operations, improving accuracy and reducing cost. Traceability will move from luxury to necessity, especially with rising food safety awareness, and cold-chain will shift from being reactive to predictive, powered by data, automation, and AI.”

Cold-chain, Nacouzi stated, is no longer a backend function; but a strategic asset for industries and economies.

“Costs are rising and customer expectations are higher than ever, so success will go to those who can create smart, resilient, and sustainable supply chains.” he concluded.

(Reporting by Deva Palanisamy; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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Tags: foodInfrastructurelogisticspharmaceuticalTransportUAE
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