Qatar World Cup: organization, impact, and legacy

¶ … 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

Qatar Syndicate Corporate Award Program

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.

Background of Logistical Challenges -- Analysis

The State of Qatar has been pushed into the international limelight ever since it won the bid to host the mega event of FIFA World Cup 2022. Now what the country needs to do is to perfect itself in terms of logistics infrastructure and transportation. It is important for the host nation so that it can prove to the world that it can really deliver. The country seems to be pretty determined to not get overshadowed by its neighbor Dubai, in terms of logistics arena. Because of this reason, the government has accepted the challenge of streamlining billions of dollars just for the redefinition of the country as one of the dominant logistical hubs of the Middle East (Fattah, 2013).

Qatar has advantage because of its significant geographical location since it is situated between the trading continents, as it had always held the great potential to become a global logistics hub. The program manager for logistics and transportation practice who works at Frost and Sullivan consultancy, Srinath Manda, said that Qatar has a strategic peninsular geography that makes it possible for the ports including Masaieed, Ras Laffan, and Doha to present significant competitive trade advantages, including that for its trade of oil and gas with other countries in the region (Khan, 2014).

However, unfortunately, this potential of the country stayed under cover. The extremely woeful and inefficient transport infrastructure of Qatar became a serious hurdle in the growth of logistics market of the country. However, all indicators now depict that Qatar is well positioned for a turnaround in logistics, through the strong commitment from government. This turnaround has been a part of the Qatar National Vision for the year 2030.

In the year 2013, the transportation and logistics market of Qatar was successful in earning revenue of almost U.S. $7,545. By earning this amount, the country registered an outstanding increase of 16.5% as compared to the last year. As of the year 2016, it is expected that the logistics and transportation market for the country will go up to earning more than $11, 930 (Khan, 2014).

The Gulf Warehousing Company, which has become an internationally renowned logistics power in its own self, has been gaining benefits from the success that result from the expansion of a logistics industry. The first three months of this year have seen the profit of this particular company increase by 12.8% as compared to those of last year. Moreover, Al-Taleb is certain that expansion of professional and expert logistics organizations in the country has witnessed some reversal of the customary trend in huge businesses to maintain their logistical operations in-house (Khan, 2014).

It has been reported by one of the analysts that as the infrastructure and industry of the country is expanding, it is expected that the activities in logistics procurement start resembling those that are practiced in other countries including UAE. For instance, the average of logistics that has been outsourced by UAE is 25%. This percentage of outsourced logistics for Europe has been reported to be between 35 and 40%, according to the predictions made by Al-Taleb. As a result of the statistics mentioned above, an estimate has been made that the segment of third-party logistics will expand to 15% of all the logistics operations by the year 2016.

A great deal of optimism demonstrated by Al-Taleb pertaining to Qatar as a feasible logistics hub dates back to the firm commitment of the country's government towards the industry. He has reported as saying that the great amounts of money that Qatar has spent on infrastructure are not hidden from anyone. Qatar has also made it very clear that it means to do business, and therefore is determined to become an industrial hub in the region, leaving behind all industry verticals. The field of logistics has come forth as glue that is responsible for holding these projects together. Moreover, this field has also proved itself as one of the largest industries in the country.

The regional editor assigned for the Middle East, who works as a consultant at Oxford Business Group, Oliver Cornock has also agreed to what Al-Taleb has to say. Every year, an annual report is formulated on Qatar by the consultancy. This report revolves around different indicators, Qatar has always been to outperform the MENA regions, and in some instances it has also outperformed the global averages. Cornock has claimed that costs in Qatar provide the main competition. At the time the publication was released, the price per container was noted to be $730 in Qatar; meanwhile the price of the container in MENA was recorded at $1,238.

Apart from the aforementioned report, in the Logistics Performance Index of the year 2007 published by the World Bank, Qatar also performed really well. Qatar's score further improved in the year 2010. There is no doubt in saying that these positive scores were a result of the infrastructure investments.

As of the latest report that has been published about Qatar indicates the wide range of opportunities for the logistics industry. This report has shown that there are domestic transport projects worth of $70 billion that are either in the planning stages or under way. Cornock has claimed that there is a great deal of investment and activity going on this sector. He went on to say that this is fundamentally the infrastructure foundations that are required to underpin the economy of Qatar in a future that is analogous to being post-hydrocarbon. Therefore, the infrastructure is of great importance for the success of the economy, and without making it diversified, the country will not be able to achieve the desired levels of revenue.

Mega projects have involved investments that add up to more than $35 billion in metro and rail projects over a time period of the next 10 years (Scharfenort, 2012). Apart from that, other projects include the flag carrier fleet at Qatar Airways, as the further development of Doha International Airport. Cornock has claimed that the aforementioned aspects of improvements in the logistics industry are quite evidently a part of the development that is being fastened by the country-successful award of the FIFA World Cup football event in the year 2022. It is quite interesting to note here that the knock-on effect of this kind of investment will not only be beneficial for the passengers, but for the freight and logistics sector as well (Samaranayake & Toncich, 2007). Another aspect of logistics industry's improvement in Qatar can be assessed by the huge success of Qatar Airways because of its enormous cargo segment. The chief officer for cargo at Qatar Airways, Urich Ogiermann has stated that the cargo segment of the airline has played a critical role in the establishment of Qatar as logistic hub for the region.

The purpose of making an analysis of the logistics sector in the country was to get an idea as to what problems the management team of this project might have to face. Apart from that, another purpose of the aforementioned discussion was to appreciate the pitfalls, as well as the opportunities within the logistics industry in Qatar that can be exploited during the management of the football tournament in 2022 (Morris, 2011).

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.