Logistics and construction challenges of the 2022 FIFA World Cup in Qatar

¶ … hosting the 22nd FIFA World Cup in 2022 in Qatar. It is the first football tournament of an international level that will be taking place in the Middle East. Ever since Qatar won the bid for this project, the construction of the venues has been started. However, the main focus of this paper is to explore the logistics aspect of this mega project. Some important definitions of the terms used with respect to logistics, as well as its fields have been given in order to understand the aspects of the project in a much better. The terms described are then applied to the project, and guidelines of how to manage the project have also been formulated for the convenience of the project managers. The fact that the logistics and construction teams have to work together in collaboration has also been emphasized throughout the report.

Qatar has also been trying to overcome the challenges it faced pertaining to some logistical issues. An analysis of these issues and the logistical background of Qatar have also been given in this report. Some particular logistical challenges that have been confronting this mega project have also been identified. Some recommendations to overcome these issues been suggested as a part of this report, followed by the conclusion.

Table of Contents

2022 FIFA World Cup Qatar -- Overview 3

Introduction to the Project 4

Importance of Logistics to a Project 5

Background of Logistical Challenges -- Analysis 9

Logistic Challenges for FIFA World Cup 2022 12

Labor as part of Logistics -- A Great Challenge and Controversy 13

Recommendations For the Challenges 14

Estimated Cost of the Project 16

Conclusion 16

References 18

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2022 FIFA World Cup Qatar -- Overview

The international football event is scheduled to take place in Qatar in 2022. The FIFA World Cup of 2022 will be the 22nd FIFA World Cup. The football tournament will be based on 32 national teams. The national team of the host country will also be a part of this tournament, on the basis of the assumption that the current schedule and format of the World Cup is maintained by then. This event holds a great deal of significance for Qatar, as well as for the rest of the Middle East, because this is the first a country from this region will be hosting the World Cup (Pattison, 2013).

In the year 2011, some kind of confrontations surfaced among the FIFA senior officials, as they were there rumors of allegations. Because of these allegations, analysts raised questions over the validity of the FIFA event being held in Qatar. Jack Warner, the vice-President of FIFA, was reported as saying that an email was publicized about the likelihood of Qatar 'buying' the 2022 World Cup by means of bribery through Mohammed bin Hammam. Bin Hammam was the president of the Asian Football Confederation at the time Qatar was named as the host nation for the mega event (Hassett, 2011). However, the officials representing Qatar in the bid for 2022 have out rightly rejected any such allegations of wrongdoing. Later on, it came to know that the central person of the story had fabricated these allegations of corruption and wrongdoing against Qatar (Whitaker, 2010).

The scheduling of the mega event is not certain. There are some concerns about the event taking place during the customary months, considered to be June and July, for the FIFA World Cup finals since the bid was made for the event. The concerns over this matter mainly stem from the fact that climate in Qatar is not very welcoming for the months of July and June. As of 2013, a team was commissioned to carry out the task of considering alternative dates. The team is meant to report the alternative dates after the 2014 World Cup takes place in Brazil (World Football Insider, 2010).

Apart from the weather conditions, there have also been some logistical complications associated to the change in timing of the event. This is the main reason why Sepp Blatter, the president of FIFA admitted last year that selection of Qatar as the host country might have been a mistake on FIFA's part (Myers, 2011).

Another issue related to the event that has attracted a good deal of attention is that of the rights of migrant workers. An investigation has also been carried out by the Guardian newspaper regarding this matter. According to what has stated in this newspaper, many workers are not being given food and water, their identities and papers have been taken away from them, they are not being paid at all or not on time, and some of them have also been made to act like slaves. According to the Guardian, almost 4000 workers are on the risk of dying because of lax safety as well as other reasons by the time the tournament will be held. The report states that these claims have made on the basis of the fact that 400 Nepalese, and more than 700 migrant workers have already died on different building sites in the country since the year 2010, which was the year in which Qatar won the bid to host the World Cup (Gibson, 2010) (Booth, 2013).

Introduction to the Project

The FIFA World Cup is one of the events that attract the most attention throughout the world. People cheer for their favorite teams, and live streaming is done on big screens almost everywhere in the world (James, 2010). However, there is always great pressure on the host nation, with respect to the game as well as with respect to the management of event that is being held in their country. The management teams have to make sure that the players, spectators, visitors, and the media personnel are not facing any kind of trouble during the event. It is important to note here that for an event to be managed effectively, there are certain aspects of contract management that need to be considered. In this particular case, the aspects of contract management that need to be brought into limelight include the construction of venues. The construction of venues will cover the construction of the stadium, the construction of the Athletes' Village, and the construction of roads and other infrastructure to facilitate the players and their fans. The second aspect is that of logistics. The third aspect is that of management, maintenance and security of the venues during the event is taking place. Budget is another consideration that needs to be discussed.

The purpose of this report is to explore the cost of logistics, as well as steering of the event. This includes the management of the event, and what steps need to be taken before the event starts, and what needs to be done while the event is taking place. Since it is a mega event, it needs to be made sure that the items that are being procured are of utmost quality. Apart from that, the aspect of the business processes will also be analyzed and discussed as a part of this report. The discussion and analysis of the construction of venues, and the other aforementioned aspects is out of the scope of this report.

Importance of Logistics to a Project

The term "logistics" and what is implied by it initially came from the military. During the war theater, logistics was used to denote the process of shipping the equipment and supplies to the soldiers. Logistics became a part of business concepts in the 1950s, when the complexity of supplying businesses with equipment increased, and when the shipping out of equipment became a part of an ever increasing globalized supply chain. When we discuss logistics in business sector today, the term is sued to explain the efficient flow as well as storage of products and goods from their point of origin to where they will be consumed. This process is often referred to as the supply chain, and logistics is considered to be a crucial and vital part of the process. The transportation, shipment, receipt, storage, and then the management of all the aforementioned areas is what are described as logistics. Within the business sector, the term logistics and its implication can be used to in terms of transportation, information, warehousing, packaging, inventory, material handling, and security.

CSCMP, the Council of Supply Chain Management Professionals, is the distinguished professional association pertaining to supply chain management professionals, and it is known throughout the world. The association has defined logistics as being that particular part of the supply chain management that is associated with plans, that implements the plans, and then controls the effective, efficient forward as well as reverse flow of the goods, their storage, services and relevant information between the point of origin of the goods to their point where they meet the requirements of the customers. Another precise definition of the same term given by this association is the "management of inventory, at rest or in motion." The association has also divided logistics into further fields. It is important for us to briefly define these fields, so that we can have a better understanding of logistics pertaining to the FIFA World Cup 2022.

The first field that we shall briefly describe here is the Procurement Logistics. This field relates to the entire process that is employed to make a selection of the suppliers and to initiate contracts for timely delivery of quality services or products. It also revolves around activities that include requirement planning, market research, supplier management, make or purchase decisions, order controlling, and ordering.

Production logistics is related to controlling and streamlining the flow that results from the supply chain, starting from the point of entry towards the end. The latter is referred to as distribution logistics, which shall be discussed shortly. The activities of production logistics are associated with layout planning, organizational concepts, production planning, and the control of production.

Distribution logistics is yet another significant field. This field is associated with the delivery of completely produces and finished goods to the customer. It is based on warehousing, order processing, and transportation of the finished goods. The major subsectors within this particular field include rail, air, and truck and water transportation. Apart from that urban transit, motor vehicle repair, warehousing and storage, and ground passenger transportation are also included within this sector. The integration of all the aforementioned subsectors is referred to as logistics, and these also include the association with these subsectors with transportation, information, warehousing, inventory, packaging, and material handling.

Reverse logistics, most often referred to as disposal logistics covers all the operations and tasks that are associated with the recycling and reuse of materials and products. The main purpose of this field, which is evident from its name, is to decrease the cost of logistics, to save natural resources and to enhance the service (Logistics: What It Is and Why It's Important to Your Company, 2012).

With the growth of the business world, the definition of logistics resulted in increased demand for improved management, which led to the establishment of experts that are referred to as the supply chain logisticians. The aforementioned type of leadership involves the management and planning of all tasks and activities that are related to procurement, sourcing, logistic management, and conversion (MikVsi'C & Lui'C, 2013). The important thing that needs to be noted here us that this type of leadership also includes collaboration and coordination with channel partners that are mostly suppliers, third-party service providers, intermediaries, and the customers (Logistics: What It Is and Why It's Important to Your Company, 2012).

When talking about logistics with respect to project management, it should be noted that logistics is required by project management, as one tributary of this field organizes a series of resources to implement and carry out the project effectively and efficiently. Usual constraints and challenges in the products include time, scope, and budget and some other constraints that are commonly relevant to business logistics. Time constraints, needless to say refers to the amount of time that is there to complete a project. The cost constraint is related to the available budget for the completion of the project. As for the scope constraints, they refer to what needs to be done for the production of the end results of the project (Logistics: What It Is and Why It's Important to Your Company, 2012).

FIFA World Cup 2022 -- Procurement Logistics

In order to carry out the event of FIFA World Cup 2022, special attention needs to be given to the aspect of procurement with respect to project management. As we have discussed that logistics is a science that has been further divided into many subfields, we shall be considering these subfield separately while discussing the project of FIFA World Cup 2022. Since it is a mega event, the organizers and the host nation needs to make sure that every product that is purchased or shipped into the country is of utmost quality. For this reason, it is important for the management team to make a separate commission that shall only be responsible for the procurement logistics. The activities that have been described above in the section of procurement logistics shall all be performed by the members of this team. The team of procurement logistics can be based on 20 managers, and further subgroups can be made according to the tasks that will have to be performed by this team.

Since the main function of the team of procurement logistics will be the purchase of products for different tasks that will have to be completed as a part of the arrangement of FIFA World Cup 2022, this team will first carry out a research in order to make sure that their suppliers hold a good reputation in the market. First of all, the raw material for the construction of the venues, the stadiums, the athletes' village, the roads, and the other infrastructure will be purchased. Special attention needs to be paid while purchasing the material of construction since it is an extremely crucial aspect of project management. The team members have to be particularly vigilant when negotiating any deals with the suppliers of these raw materials. A thorough investigation of the company with which deals are being closed will have to be made to make sure that are not wrongdoers or that they do not provide and supply substandard products.

Another subgroup within this team needs to be made that will be focusing on the storage and transportation of the raw materials that will be shipped from the place of their origin to where they will be stored until they are used. The team also has to make an estimate of the time that will be required for the shipment of the products so that arrangements can be made accordingly within time. Special arrangements need to be made for the storage of the materials, and people need to be appointed to make sure that the materials are kept safe.

Apart from the raw materials for construction and other things, another extremely important thing that needs to be acquired, and the procurement of which will also be the responsibility of this team, is labor. Labor is an extremely important aspect for the completion of this project within time. Labor has to be hired for construction, as well as for security and management of the event while it is taking place.

FIFA World Cup 2022 -- Distribution Logistics

Even though some part of this field has been assigned to the team of procurement logistics, a separate team will be required for the distribution of the products and to make sure that they have been distributed where they were needed and that too in time. Where the procurement logistics team will make sure that the products that are acquired are stored and transported, the task of the team that will be taking care of the activities of distribution logistics will be focused more on the transportation of the materials and equipment. The team will have a lookout as to where a certain product or material is required. Keeping in view the needs and requirements of different construction sites, and other places, the team of distribution logistics will ensure a smooth flow of equipment from where it has been stored to where it is needed. The responsibility of the storage and maintenance of material will be more on the team of distribution logistics as compared to procurement logistics. The former team will have to take special measures for the security of the equipment. Apart from that, the distribution logistics teams also need to make sure that equipment is not getting wasted, and is only being used and transported where it is required.

FIFA World Cup 2022 -- Reverse Logistics

This is one of the most important fields of logistics, even though this is not given much important. As explained above, this field is relevant to reuse and recycle of the products and equipment. Needless to say, the cost of this project is already estimated to be in billions of dollars, therefore there is a need for the project and contract managers to make sure those materials that are being purchased are not being wasted (Samaranayake & Toncich, 2007). This implies that are always some materials that can be reused, all such equipment should be reused wherever it can instead of dumping it to waste. Moreover, there are also some materials that can be recycled. The materials that can be recycled should be converted to the forms in which they can be used again, and then should be put to best use. Another extremely important point that needs to be noted here is the disposal of the waste materials. Since reverse logistics has to deal with the disposal of materials as well, the team that will be taking care of this field also needs to make sure that the environment of Qatar should not get affected by the disposal of the waste materials. It should be ensured by this team that none of the waste becomes a hazard for the health of the people in short-term as well as the in the long-term.

Having discussed all the fields of logistics separately, and how they should be applied to the FIFA World Cup 2022, it is important to note here that even though distinctions have been made between one field of logistics and another, the purpose and working of all the team members of all the fields will overlap considerably.

Logistic Challenges for FIFA World Cup 2022

Every analyst has his or her own definition for the term logistics. Getz has described logistics as the movement of goods, and the movement of people at the right place and at the right time. One of the extremely important aspects that need to be considered as a part of project management is capacity management. Capacity management refers to the process of identification of numbers in order to manage the flow of visitors as well as their needs. The points to be noted with respect to capacity management pertaining to this event are the time and number of matches. The event will last for up to 4 weeks, and there will be 64 matches. This implies that a maximum of 4 matches per day will be held through the course of the tournament. Matches of up to 4 per day will lead to the availability of approximately 3 million tickets. In order to cater the needs and requirements of the visitors, players and spectators, it is important for the facilities to be present not out of a radius of 60 km. The biggest challenge that has been identified by the project managers is that of the number of visitors that will be flowing in during event. It is expected that almost 500,000 visitors including the players will be coming to Qatar during the event. The number is very astonishing and challenging at the same time because it is equal to one third of the total population of Qatar. The number of visitors is not the only challenge that is troubling the project managers. There are also many other challenges that includes the management of drinks and food to the visitors. Since food items are perishable, they have to be maintained at a certain temperature, which is usually lower than the room temperature. Another issue is that of allowing pork and alcohol in the vicinity. Since Qatar is a Muslim country, it is expected that these things will not be allowed and available within the vicinity of the event, which might make things hard for the visitors and the players. Another challenge is that of distribution of snack bars among the players and the visitors (Manfred, 2013).

As for the movement of people, the project managers are also faced a couple of challenges, even though most of these have to do with construction and not with logistics. Distribution of public toilets will also emerge as a challenge during the event. Apart from that, the project managers will also have to look in the matter of accommodation and transportation of VIP guests.

Labor as part of Logistics -- A Great Challenge and Controversy

The International Trade Union Confederation and the Human Rights Watch have alleged that the system of Kafala that is implemented throughout the country makes the migrant workers extremely vulnerable to systematic abuse. Workers are not allowed to switch their jobs, and neither can they leave the country without the permission of their sponsors. In the year 2013, a case of "serious exploitation" was reported by Amnesty International that stated that workers were made to sign false statements about the receipt of their wages so that they could get back their passports. After going to a labor camp, ITUC's Sharan Burrows stated that the workers were basically being treated as slaves. He further went on to say that it has been two years since the award of the 2022 World Cup has been given to Qatar, and if this is the way they have been treating the workers then the government has no commitment to human rights whatsoever. The Supreme Committee of Qatar 2022 stated that the commitment of the government was to bring about a change in the working conditions so that it could be made sure that a legacy of improved worker welfare prevails in the region. The committee also stated that they are aware of the fact that this change cannot be brought about in a single day. However, the 2022 FIFA World Cup is playing the role of a catalyst for bringing about the improvements in this matter. A video report has been released that accompanied the article published in The Guardian. This video has shown men that are living in labor camps with dilapidated and unsanitary conditions. When the reporters visited the camp, the workers told The Guardian that they were promised that they will be paid high salaries before they were shipped into Qatar, but when they arrived here their contracts were destroyed and they do not exist anymore. Some of the workers exclaimed that they had not been given in money in months; however the construction companies that hired them have also taken away their passports and other IDs, and therefore have trapped them. The workers described that they have to beg for food, and they are also tortured at times. They also went on to say that could try to escape the place, but in case they get caught without having legal papers, they will be sent to jail. However, on the other hand the Supreme Committee of Qatar 2022 has denied the fact that the construction companies that have treated the migrant workers in the way that has been described above have anything to do with the World Cup. The Committee also stated that they have been informed of such cases and they are truly concerned with the allegations that have been made. They further went on to say that the associated government authorities are doing an investigation to find out the actual story behind the allegations.

Recommendations For the Challenges

It will not be wrong to say the project managers are faced with many issues, and there are many challenges that will have to be overcome for a successful management of the event. Since construction of the venues has already been decided and a lot of work has been started with respect to construction, the aspect of contract management that is troubling the managers the most at this point in time is that of logistics. Construction is something that will end well before the start of the event; however logistics is something that keeps going on even during the event. In the wake of the challenges that have been described, there are some recommendations that have been summarized in this report.

First we shall consider the management of such a huge number of visitors that will be coming in to Qatar during the event. There is no doubt in the fact that it is not possible for the team of the project managers to manage such a great number of people. Therefore, the management team can ask for volunteer help, as it was seen in Summer Olympics 2012. People from all over the country participated in volunteer work, and helped the managers to manage the event effectively. The same strategy can also be used here. The management team can advertise through newspapers, magazines, and the electronic and social media that whosoever is interested in becoming a part of the great event should volunteer and help the government do so. On the other hand, the project managers that are responsible for the construction of the venues should be asked to coordinate. The coordination between the logistics team and the construction team is important because the two go hand in hand. The logistics team should share all the information with the construction team and vice versa so that there is no synchrony and not mismanagement during or before the event. According to the number of visitors, the construction team should be asked to build washrooms at convenient intervals for the visitors and the players. Apart from that, the logistics team should also make sure that there are other facilities available for the visitors including cafes and tuck shops. Another important aspect that needs to be especially considered by the logistics team with respect to food items is that refrigerators should always be present in every tuck shop or cafe so that the food items do not become unusable.

As it has been mentioned above that FIFA has made allegations of corruption pertaining to Qatar being named as the host nation. This calls for a far greater responsibility on the shoulders of the project managers. When negotiating deals for the supply of equipment and materials, the logistics team needs to make sure that the materials being provided are from a reputable supplier, in a reasonable cost, and is being delivered in time. If the infrastructure of the venues will lack in quality, there can be even further allegations on the country and managers of corruption (Britishexpertise.org, 2014).

The matter of serving pork and alcohol and their availability is yet another matter of great concern. Football is mainly the game of the Europeans, and they are obviously fond of alcohol as well as pork. The logistics team should not take a decision on its own about this matter. The government should be engaged on this, and it should be asked to discuss the matter with FIFA so that there are no problems later on.

Then we have to consider the problem of the labor, and what is being published in the newspapers about the mistreatment of labor. Needless to say, the labor should be given proper food and place to live. They should also be paid the wages that they deserve according to the amount and intensity of work that they do.

Estimated Cost of the Project

According to some estimates that have been made by the project managers, as well as the analysts, the World Cup 2022 is going to cost Qatar somewhere around 138 billion pounds, which is equal to 220 billion USD. This estimate is considered to be almost 60 times the cost paid by South Africa, which totaled up to $3.5 billion, on the football tournament that took place in the year 2010. A financial and legal analyst from Germany, Dr. Nicola Ritter, was reported as telling the summit of investors that was held in Munich that around 107 billion pounds will be spent on stadiums and other facilities. As for the cost of logistics, which includes transportation infrastructure, it has been estimated by the team of project managers as being 31 billion pounds. Ritter claimed that 30 billion pounds are estimated to be the cost of construction of air-conditioned stadiums; and another 48 billion pounds would be spent on accommodation and training facilities for the players and the fans. Yet another 28 billion pounds will be required to be spent on the construction of a new city that will be called Lusail. This city will be surrounding the stadium that will be hosting the opening and final matches of FIFA World Cup 2022.

Conclusion

Qatar won the bid for hosting the international event that is much awaited throughout the world. The FIFA World Cup tournament has been scheduled to take place in 2022; however the months have not yet been decided because of the climate pattern of the country. The traditional months for this event are considered to be June and July, but it will be way too hot in Qatar during that time of the year. This event is of crucial important to Qatar, as well as the rest of the Middle East. It is the first major international tournament that will be hosted by a Middle Eastern country. As a part of preparation of the event, Qatar has significantly expanded its logistic industry, and has become the logistic hub of the region because of its strategic location. The logistics team has mainly been focused throughout this report with respect to their tasks before and during the event. It is important for the logistics team to work in coordination with the construction team so that this project can be managed effectively and efficiently (Shtub, 2012).