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M A G A Z I N E NO . 1 / 0 7
North America
USA, Canada, Mexico, Central America
KN Expo Service
In action for Formula One
Kühne
Kühne+Nagel
+ Nagel World
World
Nr. 1/2006
1_2006
2
Contents
Contents
4
Focus
The North American organisation
14
Markets & Products
169 Iveco trucks shipped
16
Textile logistics – the height of fashion
18
Second location at the hub of the Middle East
20
New logistics facilities in Ukraine and Belgium
North America
Be it in big cities or in the endless open spaces. With its global network, its professional expertise
and local know-how, Kuehne + Nagel can score points everywhere on the American continent.
22
Another “first ever” operation
Published by
Kuehne + Nagel International AG
P.O. Box 67, CH-8834 Schindellegi
Tel. +41 (0)44 786 95 15
Fax +41 (0)44 786 96 90
E-mail: [email protected]
24
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Inside
Full steam ahead for the Far East
Language
English and German
32
Round the World
Print run
30,000
34
People & News
Imprint
Print
Wilhelm Zertani
Druckerei und Verlag
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Frequency
Two times a year
Kuehne + Nagel World No. 1/2007
Editorial
Dear
Readers
Klaus-Michael Kuehne put it in a nutshell in an interview reprinted in this edition of
World Magazine: The crucial factor for our business is world trade, and it continues
to grow at a tremendous rate. As a global player, Kuehne + Nagel is benefiting
strongly from this development.
A look at the North American organisation of Kuehne + Nagel, which covers
the USA, Canada, Mexico and Central America, already shows the advantages of our
international network. With a great deal of vision and keen business sense, its foundation stone was laid some 50 years ago.
Another factor is also becoming ever more important for trade and industry: the continuous optimisation of logistics processes in order to increase competitive advantage. Many customers have recognised the value-added potential of a service tailored to their needs, and have placed the responsibility for optimising their logistics
in our hands. They include companies like Canadian Tire, Schild and La Senza, all
featured in this magazine – and more are joining them every day.
Enjoy reading this latest edition of World Magazine.
Your Klaus Herms
Chief Executive Officer
We shall naturally be pleased to receive your comments on this magazine,
which you can send to [email protected].
Kuehne + Nagel World No. 1/2007
3
The North Ameri
North America, or more precisely Canada, is where the internationalisation of Kuehne + Nagel began
just over 50 years ago, and today the company has facilities in 26 locations in this country. The whole
Kuehne + Nagel North American organisation (USA, Canada, Mexico, Central America) is present in
USA
Canada
Locations:
85
Locations:
26
Employees:
2,882
Employees:
1,432
Warehouse space:
1,385,200 sqm
Warehouse space:
418,100 sqm
Kuehne + Nagel World No. 1/2007
can organisation
140 places, employs roughly 5,000 people in the region, and has a warehouse space of nearly 2 million
square metres under management. Be it in big cities or in the endless open spaces: with its global network, professional expertise and know-how the company has trump cards that it can play everywhere.
Mexico
Central America
(Guatemala, Honduras,
Costa Rica, Nicaragua, El Salvador, Panama)
Locations:
19
Locations:
10
Employees:
578
Employees:
79
Warehouse space:
160,800 sqm
Warehouse space:
—
Kuehne + Nagel World No. 1/2007
6
Focus
“A clear strategy, a broad product
portfolio and a motivated workforce”
Rolf Altorfer, President and CEO, Kuehne + Nagel, USA, Mexico and Central America, on the
distinctive characteristics of his region, its objectives and his recipe for success.
tive national Kuehne + Nagel organisa-
ible in providing industry-specific solu-
tions tailor their logistics offering to
tions and matching the markets’ differ-
accordingly.
ent logistics demands quickly and efficiently. With a common quality, safety,
The USA and Mexico have a long-stand-
health, security and environmental poli-
ing trade relationship that over the past
cy and a wealth of experienced, knowl-
twelve years has been further strength-
edgeable staff throughout the region,
ened under the North American Free
we’re able to conduct business success-
Trade Agreement NAFTA. Kuehne +
fully.
Nagel’s investment in the development
and continued expansion of cross-border
How
have
customer
requirements
projects is testimony to the importance
changed in the recent years? And how
of this trade.
is Kuehne + Nagel accommodating
this?
Rolf Altorfer
Mr Altorfer, you have been responsible
for Kuehne + Nagel’s US, Mexico and
Central America markets for six years
now. What are the characteristics of
your region? What are its dynamics?
As a basic principle, we consider each
country within the region as an independent market with its specific logistics
requirements, and which the respec-
Many of our customers have representa-
International trade and globalisation
tion beyond the USA and Mexico,
experienced in Europe and Asia are, of
throughout Central America, and along
course, similarly demonstrated in our
with our recognition of the growing
region, thus changing the logistics
potential in Central American econo-
requirements of our customers; high effi-
mies we have built up our own local net-
ciency and “one-stop-shopping” are such
work over the past few years. Kuehne +
requirements that our integrated logis-
Nagel is one of just a few global logistics
tics product suite meets.
providers offering direct representation
Honduras,
What effect did the USCO Logistics
Costa Rica, Nicaragua, El Salvador and
acquisition in 2001 have on the US
Panama.
organisation and on existing customer
throughout
Guatemala,
relationships?
USA,
Mexico,
Central
America
Kuehne + Nagel World No. 1/2007
What strategic objectives do you pur-
The acquisition of USCO Logistics, a spe-
sue in the region?
cialist in contract logistics services, per-
In line with the global initiatives of the
fectly complemented our international
Kuehne + Nagel organisation, we are
transportation capabilities. The ability
working to build true product integra-
to provide true supply chain manage-
tion throughout the supply chain adding
ment combined with sophisticated ship-
tangible value for customers. We’re flex-
ment visibility and monitoring through-
Focus
out all transportation modes and services
five contract logistics customers, for
industry expertise. We have a clear strat-
gives us a considerable competitive edge.
instance, are now using our sea and
egy, a broad product portfolio, and highly
air services. Communications, invoicing,
motivated workforce.
With logistics infrastructure continual-
handling of freight, global sourcing and
ly expanding, you have for some time
multi-regional distribution – all of these
It’s no secret that we’ve been successful,
now been laying a strong focus on
aspects can thus be managed more effi-
but we don’t rest on our laurels. We’re
cross-selling activities; have you been
ciently which in turn can save a client a
continually investing in our people, our
able to deepen existing relationships
lot of money. In addition, our standard-
information technology and the expan-
and win many new customers?
ised IT systems provide high visibility
sion of our organisation. We can offer
The integration of USCO certainly
and control throughout the supply
customers many firsts – globally stan-
opened up new avenues for cross selling.
chain.
dardised IT programs, innovative solu-
This coincides with the trend that cus-
tions or certifications: for example, we
tomers are increasingly looking for a
The US is a highly competitive market
remain the first and only company to be
reduction in the complexity associated
place. What unique selling proposition
accredited as Cargo 2000 Phase 2-certi-
with multiple logistics service providers,
can a company like Kuehne + Nagel
fied throughout our airfreight network,
concentrating on a few or even just one
offer its customers in the region?
worldwide. And not to mention customer
provider. With Kuehne + Nagel they get
Kuehne + Nagel is a financially stable
satisfaction, which across the region as
all services from a single source. Our top
company with generations of practical
well as worldwide has top priority.
In the fast lane: Kuehne + Nagel is on course for expansion in the region USA, Mexico and Central America.
Kuehne + Nagel World No. 1/2007
7
A logistics program tailored
to DIRECTV
With more than 15.5 million customers in the United States, DIRECTV – one of the world’s leading
satellite TV services – knows how to deliver a great entertainment experience. But when it came to
streamlining logistics service channels, DIRECTV turned to the expertise of Kuehne + Nagel.
The objective was to improve supply
sqm of space across three Kuehne +
services and costs to deliver a competi-
Nagel distribution centres in California,
tive advantage by optimising and man-
Georgia and Pennsylvania. DIRECTV was
aging its U.S. warehousing as well as
able to divest its non-productive logistics
segments of its inbound international
assets, allowing it to focus investments
transportation.
to support its core business.
Previously, DIRECTV had supported cus-
Kuehne + Nagel’s three-DC solution
tomer requirements from two distribution
improves customer service levels, while
centres, which led to less-than-ideal
reducing
order to delivery turnaround times and
and, through process efficiencies, oper-
increased transportation costs. Using a
ational costs. It provides a high level
fully collaborative business partnership
of customer service – in terms of per-
model, Kuehne + Nagel effectively
centage of deliveries that can be com-
designed a contract logistics solution tai-
pleted across the United States within
lored to DIRECTV’s unique needs.
three days – since each DC has easy
DIRECTV’s
transportation
access to a robust interstate highway
The result: Consolidation of DIRECTV’s
infrastructure
distribution requirements into 56,000
availability.
and
ample
labour
“Working closely together, we expect
USA,
Mexico,
Central
America
DIRECTV will gain a competitive advantage by leveraging Kuehne + Nagel’s
proven logistics expertise,” said Tom
McGeorge, Vice President, Supply Chain,
DIRECTV, Inc.
Kuehne + Nagel World No. 1/2007
Now much faster: DIRECTV products on
their way to the customer.
Focus
Kuehne + Nagel Mexico hosts
second Pharmaceutical Forum
Mexico is the main pharmaceutical and healthcare market in Latin America, and many well-known
companies have set up production facilities in the country. In addition to local distribution – the
metro area of Mexico City in particular creates a high demand for such products – companies deliver
to customers in North and South America and throughout the world from there.
In August 2006, Kuehne + Nagel Mexico
held its second Annual Logistics Forum
for the Pharmaceutical and Healthcare
Industry. The event’s objective is to provide a platform for the exchange of experiences, and for Kuehne + Nagel to enter
into a dialogue with the industry and
learn about trends and changing requirements. 126 healthcare and pharmaceutical experts attended the event.
Ira Smith and Thomas Berger, Kuehne +
Nagel’s healthcare and pharmaceutical
specialists, opened the event with a
presentation of new logistics concepts
designed to support the industry. This
was followed by a speech from Juan
Antonio Villa, General Commissioner of
the Federal Commission for the protection of Sanitary Risks in Mexico. After
these initial presentations, the audience
split into five workshops led by industry
experts to discuss different topics, such
as integrated logistics, cold chain man-
Logistics solutions for the pharmaceutical industry occupy a prominent place in the Mexican
business.
agement, national distribution, security
July 2006, sees the Forum as an ideal
tunities. “Kuehne + Nagel is planning to
and customs brokerage. The results of
platform to expand further in the nation-
host similar events for other industries,
every workshop were then presented to
al and cross-border pharma market.
too, such as high-tech, where we rank
the audience.
“Only with the continued improvement
among the leading logistics providers in
and development of our industry-specif-
Mexico, or for the booming hotel indus-
The event was a great success and gen-
ic products and services will we also in
try in Yucatan and Baja California; we
erated very positive feedback from par-
future be able to enter into new and
only recently opened an office in Cancun
ticipants. Reto Malfatti, Kuehne + Nagel
closer partnerships with our customers.”
which addresses the logistics require-
Mexico’s new Managing Director since
Events such as this offer fantastic oppor-
ments of this sector amongst others.”
Kuehne + Nagel World No. 1/2007
9
“The experience and know-how pool is our
greatest asset”
Ferdinand Kurt, President and CEO of the Kuehne + Nagel company
in Canada on the distinctive characteristics of the national organisation, specific customer requirements and future points of focus.
Mr Kurt, you have been President and
externally! Given these extra-ordinary
CEO of Kuehne + Nagel’s Canadian
circumstances, I do indeed feel a special
organisation since July 1, 2006. Do
sense of responsibility.
you feel a sense of particular responsi-
Ferdinand Kurt
Canada
Kuehne + Nagel World No. 1/2007
bility, knowing that the Group’s inter-
What are the distinctive characte-
national expansion commenced here
ristics of the national company that
in Canada just over 50 years ago?
you have observed so far?
Absolutely! The long and successful his-
Kuehne + Nagel has highly skilled and
tory of our organisation in Canada is
motivated people all around the globe.
synonymous with Kuehne + Nagel’s
What makes Canada unique is what I
international expansion over the past
would call the “loyalty factor” – over
five decades. Worldwide, and in this
50 per cent of our national work force
part of the world, there have been
has been with the company for longer
considerable achievements. Kuehne +
than ten years. Our employees often
Nagel Canada is proud of the signifi-
started in a trainee or apprenticeship
cant contribution it makes to the global
program with the company and worked
network year after year. In a nutshell,
their way up through the organisation,
the national organisation has an excel-
taking on different roles and responsi-
lent reputation – both internally and
bilities over time. This pool of experi-
Focus
ence and know-how is undoubtedly our
In what industry segments is the
on increased regional development out-
strongest asset today.
company particularly strong?
side of the province of Ontario, where
We are particularly strong in the FMCG
we have obviously our main base of
What particular customer require-
(fast moving consumer goods/retail)
business. There are significant opportu-
ments does your region have to cater
and high-tech/telecom verticals. Also the
nities from coast to coast – one which I
to? Where is the market going?
automotive sector as well as the aero-
would like to highlight is the booming
In today’s globalised economy we are
space industry play an important role in
energy sector in Newfoundland and
seeing similar trends in Canada as
our dynamic business in Canada. In
Alberta. Secondly, we will further
around the world. It is a fact that effec-
addition, we have specialised know-how
expand our cross-selling activities by
tive and efficient supply chain manage-
and market share in other key industries
offering more integrated services to
ment is today more than ever of strate-
here, like perishables, wine & spirits, oil
existing customers. Thirdly, we will put
gic importance for companies, in order
& energy, project forwarding and hotel
even more emphasis on our global
for them to compete in their respective
logistics. Our strength in these indus-
accounts program, and finally, we will
industries and markets. This means that
tries comes from years of experience,
strengthen our activities in the NAFTA
a lot more emphasis is given to having
know-how and the commitment to
countries.
the right amount of material or product in
deliver best-in-class solutions to our
the right place at the right time. With our
customers.
integrated service offering, our global
network and comprehensive infrastruc-
What are your focus and objectives for
ture as well as our standardised IT plat-
the coming years? Where do you see
form we are well positioned to help our
potential for further development?
customers successfully manage these
There is lots of potential! I would like to
trends.
stress four key areas: first, we will focus
The headquarters of Kuehne + Nagel in Toronto.
Kuehne + Nagel World No. 1/2007
11
12
Focus
Logistics transparency
for La Senza
Joel Teitelbaum, President, La Senza International Inc., illustrates the partnership that has existed between
the company and Kuehne + Nagel since mid-2005 for World Magazine.
“Since its foundation some 15 years ago,
Kuehne + Nagel was selected as the
ments and far greater control over timely
La Senza has rapidly grown, and with the
company’s strategic logistics partner.
delivery of our merchandise than ever
increasing number of license partners
Amongst other things, this was due to its
before.
throughout the world operating La Senza
logistics coverage, its globally standard-
stores, our sourcing and distribution
ised IT-based solutions, and – not least –
Continuously fostering the relationship
processes have become more and more
its strong position in Canada.
Our
complex. Today, La Senza’s production
traffic
professionals
consider
Kuehne + Nagel to be an extension of
sources span more than 20 countries,
We have high requirements when it
our business. Our vendors and licensees
supplying outlets in 36 countries and
comes to moving our fashion product
are instructed to treat Kuehne + Nagel
growing!
and delays must be avoided, as fashion
personnel as though they were dealing
trends do change quickly. As a reliable
directly with our own La Senza people.
Reasons for selecting Kuehne + Nagel
logistics partner, Kuehne + Nagel sup-
To foster the relationship between our
Before teaming up with Kuehne +
ports us in meeting these challenges.
two companies, we regularly meet several times a year. This year the teams are
Nagel, we allowed our licensees to select
their own freight forwarder and there-
The partnership began operating as of
convening in Jebel Ali, Dubai, a region
fore we had many different operating
July 2005 and continues to improve to
where we operate numerous stores.”
systems, different service levels and a
this day and beyond. With Kuehne +
lack of central control. In order to exploit
Nagel we have been able to define and
the hidden potential in this network, we
implement standard operating proce-
held a request for proposal from a num-
dures controlled by our traffic profes-
ber of major freight forwarding and
sionals in Montreal. Using KN Login we
logistics companies, and ultimately
have far better visibility over our ship-
La Senza
Canada
Kuehne + Nagel World No. 1/2007
La Senza is one of the most successful global lingerie brands. Founded in Canada
in 1990, the company has since grown to over 320 company-owned stores across
Canada and another 330 stores in 35 countries throughout the world owned and
operated by master license partners.
“The choice was an
easy one”
Canada is big, and navigating those far-reaching highways that link province to province is simply
a big part of life. Woven into that tradition is the brand of Canadian Tire Ltd. Steadily growing from
its foundation in the 1920s to uniting its target market, no matter how isolated, the company today
is Canada’s most-shopped automotive accessories, sports, leisure and household goods retailer.
Canadian Tire Ltd. has been relying on
Kuehne + Nagel’s contract logistics
expertise since 1999 – a successful partnership from day one. Looking back,
John Salt, Vice President, Distribution
and Operations Planning for Canadian
Tire Ltd. says, “Ultimately, the choice
was an easy one. Our company needed a
3PL partner, and we sought out the best
A Canadian Tire sales room.
reputation in contract logistics. We knew
of Kuehne + Nagel’s good track record in
ed added flexibility and supplied addition-
distribution and that was important to
al throughput and storage capacity to
Benefiting from the Global Logistics
Network
us. Their operations are located conve-
accommodate Canadian Tire’s need for
John Salt mentions another advantage
niently nearby and that’s ideal for an
transitional space as it implements reengi-
of working with Kuehne + Nagel – as
optimal cooperation.”
neered supply chain processes in new
Canadian Tire increasingly looks abroad
distribution facilities of its own. And
to source new products from around the
“Kuehne + Nagel’s solutions have helped
Kuehne + Nagel’s value-added services
globe, the company of course benefits
accelerate Canadian Tire Ltd.’s growth,”
have also gone far to support Canadian
from Kuehne + Nagel’s international
he continues. Kuehne + Nagel has provid-
Tire’s new marketing and online initiatives.
presence and global logistics network.
Kuehne + Nagel World No. 1/2007
Neatly lined up: The trucks just before sailing.
Kuehne + Nagel deepens its relations with the Fiat-Iveco Group Brazil
169 Iveco trucks shipped
The Iveco Brazil Group normally ships its vehicles to all parts of the world once per month. But on
this occasion the company had to dispatch a large number of trucks at very short notice. A job for
Kuehne + Nagel.
The inquiry that Kuehne + Nagel received
closer relationship with Fiat-Iveco, one
in terms of quantity, quality, costs and
from the Fiat-Iveco Group Brazil on
of the biggest automobile manufactur-
transport times without using the cus-
3 August 2006 was certainly no ordi-
ers in the country.
tomary means of transport.
truck market, some 200 vehicles needed
After only a few phone calls it became
During the planning phase, Iveco’s
to be shipped from Buenos Aires or
clear that this project could not be han-
request was redefined to 169 trucks,
Zarate in Argentina to Puerto Cabello in
dled in the normal way, because it was
still a challenging task. The solution
Venezuela as quickly as possible.
impossible to obtain sufficient roll-
was reached in a process of teamwork
on/roll-off capacity for this number of
between Kuehne + Nagel in Brazil,
But this order also represented an
vehicles within the small available time
Venezuela and Argentina: A lift-on/lift-
opportunity, for since the end of 2005
window. This was the start of an inter-
off service on a normal multi-purpose
Kuehne + Nagel Brazil has been working
nal brainstorming session to find a way
vessel from Buenos Aires which met all
together with its sales team to achieve a
of meeting the customer’s requirements
the customer’s specifications.
nary one: due to a booming Venezuelan
Kuehne + Nagel World No. 1/2007
Markets & Products
But would Iveco agree? To convince the
customer to accept this type of transport, a number of telephone conferences
were needed. For further clarifications
the Kuehne + Nagel team travelled to
the Iveco headquarters in Minas Gerais.
Because of the narrow time frame, a
week before the date of shipping,
Kuehne + Nagel staff and the responsible persons from Iveco in Argentina
and Brazil met in order to discuss the
details of the operation and to ensure
that all the principal demands of the
customer had been met.
On 31 August – now very close to the sailing date – a member of the project team
travelled to Buenos Aires in order to carry out an inspection of the trucks including a precise check of their weights and
dimensions and to see to the meticulous
implementation of the loading plan.
When centimetres count, things have to be done by hand.
“The solution to the problem: a lift-
on/lift-off service”
The loading of the trucks by crane, under
the eyes of Kuehne + Nagel experts,
began on the morning of 2 September. It
was successfully completed, after a nonstop operation, at 4 p.m. on 3 September.
The trucks now stood on three decks.
Kuehne + Nagel shrink-wrapped the
chassis of the vehicles on the weather
deck in order to protect them from the
elements.
The ship sailed at 6 p.m. on the same
day, and reached Puerto Cabello on 17
September. Kuehne + Nagel specialists
were again on the spot for the unloading
of the cargo in Venezuela. Iveco was able
to deliver the vehicles punctually to one
of its biggest South American markets.
In a lift-on/lift-off service, the cargo was transported on a normal multi-purpose vessel.
Kuehne + Nagel World No. 1/2007
15
16
Markets & Products
Textile logistics – the height of
fashion at Kuehne + Nagel Switzerland
World Magazine takes a glance inside the Münchenstein textile logistics centre
explains Roger Meyer, the head of the
textile logistics centre, who outlined the
situation in the sector while taking us on
a tour of the facility. In the textile and
garment industry, time, quality, reliability of delivery and never-out-of-stock
requirements are of key importance. The
several changes of collection per year,
and the global supply networks, place
heavy demands upon logistics, too,
Meyer added.
The textile logistics centre seen from the outside.
Managing textile logistics from end
to end
To ensure that everything operates
smoothly, Kuehne + Nagel is already
Textile logistics is an important part of
“In order to maintain their position in an
involved in the ordering processes. “As
business of the Swiss Kuehne + Nagel
ever more globalised and competitive
soon as the Schild buyers place their
company. The team, headed by Roger
market, companies like Schild are con-
orders with the manufacturers and sup-
Meyer, is very proud of the Kuehne +
centrating fully upon their core business
pliers all over the world, the logistically
Nagel textile logistics competence cen-
while their logistics partners ensure the
relevant data are transmitted to the
tre specially designed for this line of
availability of the goods in all their sales
Kuehne + Nagel shipment tracking
business, and naturally also of the fact
outlets in a cost-effective manner,”
and supplier management system,” he
A look into the textile logistics centre with
the five-kilometre conveyor system.
Unpacked goods are sorted into boxes for
the individual sales outlets.
that Schild, one of Switzerland’s leading
fashion houses, has decided to place the
whole of its textile logistics in the hands
of Kuehne + Nagel for the next five
years. Under the contract, high-quality
women’s and men’s fashion collections
are sourced in Asia and Europe, after
which they are expertly processed and
finally delivered to the 41 Schild sales
outlets all over Switzerland. The key element in this supply chain is the competence centre in Münchenstein.
Kuehne + Nagel World No. 1/2007
Markets & Products
informs us as we accompany him past
paigns, as well as unit price calculations
conveyor systems full of clothes ready for
for hanging and flat-packed goods.
further processing. “Our specialists on
the spot then get in touch with the sup-
The textile logistics competence centre
plier to determine the availability of the
has an area of 12,000 square metres on
goods and when they can be collected,
four floors, which are linked together by
inform the customer of any discrepancies
a conveyor system with a length of five
in delivery dates or quantities, and see to
kilometres. Its throughput, from the
the transport of the goods to Switzerland
arrival of the goods to their distribution,
while taking advantage of consolidation
averages 25,000 garments per day.
The garments pass through the steam tunnel.
potentials,” Meyer explained.
The processed hanging and flat-packed
When the hanging or flat-packed goods
goods from Münchenstein are delivered
arrive in Münchenstein, they undergo a
to the Schild sales outlets several times
precise quantity and quality control
per week. The textile logistics centre also
check including entry in the customer’s
holds buffer stock to compensate for
inventory management system. Other
seasonal fluctuations in demand. At the
Kuehne + Nagel garment finishing serv-
customer’s request, Kuehne + Nagel
ices range from price labelling and plac-
manages return logistics along the
ing on hangers to reconditioning in the
whole chain from the point of sale to the
steam tunnel. The spectrum of services
supplier.
also includes the shipping of raw materials, special services for sample consignments, promotional goods and cam-
Hanging goods ready for dispatch.
A Schild shop in Zurich.
Kuehne + Nagel World No. 1/2007
17
18
Markets & Products
Second location at the hub
It is to be an important part of the world’s biggest integrated multimodal logistics platform and represents phase 1 of the Dubai World Central megaproject: Dubai Logistics City. Kuehne + Nagel, who have
Gary Black, Managing Director Kuehne + Nagel UAE, (right) and
Sheikh Ahmed bin Saeed Al-Maktoum, Chairman of the Dubai Aviation Corporation and Dubai World Central, (left) at the signing of
the agreement.
In the presence of Sheikh Ahmed bin Saeed Al-Maktoum,
Chairman of the Dubai Aviation Corporation and Dubai
World Central, a lease agreement for an area of 52,000 sqm
in Dubai Logistics City was signed in September 2006 by
Gary Black, Managing Director of the Kuehne + Nagel organisation in the United Arab Emirates, and Philip von Bismarck,
National Manager Contract Logistics. The way is now clear for
This is how it will look: the future Dubai World Central International Airport. It is
the construction of a state-of-the-art logistics terminal including office premises – and thus for the development of the
into an important logistics centre and is increasingly serving
Dubai base into the principal Kuehne + Nagel distribution
as a distribution hub for the Middle East, a region that is play-
hub for the Middle East.
ing an ever greater role in global trade.
The first construction phase of the planned facility with a total
The rapidly growing markets in this economic area, and the
area of 30,000 sqm is to be completed at the beginning of
ever more exacting demands of customers with regard to
2008, when a storage and handling area of 15,000 sqm will
delivery times, have led to a re-thinking of the distribution
be available. The new installation will complement the exist-
structures that have developed over the years. Instead of
ing Kuehne + Nagel logistics terminal in the Jebel Ali
supplying the Middle East from Europe or Asia, the trend is
free trade zone.
now to build up stocks of finished goods in Dubai. Furthermore, major international companies are shifting their pro-
In addition to its importance for sea and air transport on the
duction facilities to the new hub in order to supply regional
Asia-Europe axis, over the past few years Dubai has developed
markets with optimum costs and delivery times.
Kuehne + Nagel World No. 1/2007
Markets & Products
of the Middle East
been present in the United Arab Emirates for three decades, will set up a logistics centre at this strategic
location to serve as a platform for further growth. Construction is due to start this year.
Dubai World Central (DWC), almost twice the size of Hong
Kong Island with an area of 140 sq. km, is an enormous
urban construction project which is being realised around
what will in future be the world’s biggest airport – Dubai
World Central International Airport, roughly 40 km from
the existing Dubai International Airport. DWC represents a
completely new dimension in urban planning, a “city within the city” which is designed to provide for the aviation,
tourism, logistics and trade requirements of Dubai in the
long term and constitutes one of the most important developments in the history of the United Arab Emirates. More
than 750,000 people will ultimately work and live in DWC.
the core of the new multimodal logistics platform.
Dubai Logistics City (DLC) will become a part of the biggest
integrated multimodal logistics hub in a customs-bonded
free zone which embraces not only DLC but the new Dubai
World Central International Airport (JXB), the Enterprise
Park and the port in Jebel Ali amongst others. DLC is
planned to be the biggest logistics hub in the region, and
will serve a total of two billion people in the whole of the
Middle East, the Indian subcontinent, Africa and the CIS
countries. All these countries can be reached by air from
Dubai in a matter of three to four hours.
Kuehne + Nagel has been active in the United Emirates since
1977, and has located its headquarters in Dubai. Whereas its
activities initially focused on project business, the company is
now constantly adapting to the developments of the market
Existing warehouse
Jebel Ali Port
and offering its customers integrated logistics services – highquality sea- and airfreight services, contract logistics, overland
transport, industry-specific hotel logistics as well as supply
chain management solutions on a one-stop-shop basis.
With the expansion of its logistics infrastructure at the hub of
New warehouse
Dubai World Central
Dubai Logistics City
the Middle East, Kuehne + Nagel is even better equipped to
support its clients in optimally serving all important markets
in the region.
Plan showing the positions of the existing Kuehne + Nagel
facility and the new one inside Dubai Logistics City.
Kuehne + Nagel World No. 1/2007
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Markets & Products
New logistics facilities in
“The investment in this logistics facility is a key element in our growth strategy and underlines our
confidence in this dynamic economic region.” Klaus-Michael Kuehne, Executive Chairman of the Board
of Directors of Kuehne + Nagel International AG, and his wife travelled to Ukraine to inaugurate the
new state-of-the-art logistics facility in Gostomel near Kiev on September 15.
The new, modern logistics centre in Gostomel.
The facts: Kuehne + Nagel has invested
offers 18,500 sqm of warehouse space
pany’s courage and vision are paying off
more than ten million euros in its new
and features attractive office premises.
– Kuehne + Nagel has optimally posi-
logistics facility at the national compa-
“We are proud of our successful opera-
tioned itself as a highly sought-after
ny’s headquarters northwest of Kiev.
tions in Ukraine in all business fields,
logistics partner. The company is the
With the completion of the second
and in particular of our market-leading
leading airfreight and contract logistics
phase of construction, the logistics cen-
position in contract logistics,” said
provider, it is currently expanding its
tre, built on a 60,000 sqm plot, now
Klaus-Michael Kuehne at the inaugura-
overland operations to accommodate
tion ceremony, which was attended by
the growing demand, ranks among the
numerous customers and business part-
most experienced providers of cross-bor-
ners, as well as state representatives,
der rail logistics services, and possesses
who all commended the company for its
in-depth customs clearance expertise.
initiative.
During the opening ceremony, Victor
A view inside the warehouse.
Kuehne + Nagel World No. 1/2007
A partner in high demand
Shkarban, Managing Director of the
Kuehne + Nagel has been operating in
Ukrainian Kuehne + Nagel organisation,
Ukraine since 1992, a country that
pointed out one of the many advantages
counts among the key manufacturing
of this comprehensive logistics portfolio.
and sales markets in Eastern Europe;
“Through efficient cost and process
many other logistics providers are only
management, we are able to leverage
today venturing into Ukraine. The com-
the competitive edge of our customers.”
Markets & Products
Ukraine and Belgium
Boasting 45,000 sqm of warehouse space, including 12,000 sqm for the provision of value-added
services, and 50,000 pallet positions, October 2006 saw the official inauguration of a highly
functional logistics facility in Geel attended by the Prime Minister of Belgium, Guy Verhofstadt.
concept, the 300 employees based at the
facility provide traditional inbound and
outbound logistics services, efficient
warehousing and distribution solutions
as well as comprehensive value-added
services across the entire supply chain.
For key customer Lexmark, one of the
world’s leading providers of printing solutions and associated supplies, the logistics terminal serves as a European import,
warehousing and distribution centre.
Cathy Iacobo, Vice President Customer
50,000 pallet slots. The highly functional logistics centre in Geel.
Services EMEA with Lexmark, expressed
her enthusiasm about the new facility
Located on a 100,000 sqm plot in Geel
ing and capacities in Belgium and has
during the opening ceremony. “The new
Punt Industrial Park, the logistics centre
chosen Geel as location for its new logis-
Kuehne + Nagel terminal in Geel sup-
was built in less than a year. The total
tics centre is an expression of confidence
ports our development strategy and rep-
investment amounted to 30 million
in the location and its economic condi-
resents a significant operational improve-
euros. In a further phase of construction,
tions,” he continued.
ment to better serve our customers.”
the warehouse can be extended to
75,000 sqm.
Geel not only offers excellent tri-modal
access to motorways, railways and water-
Positive performance
ways, but is also ideally located in proximity
“I am very pleased that the inauguration
to Brussels airport and the seaports of
of this modern facility coincides with the
Antwerp and Rotterdam; advantages for
50 anniversary of our Belgian organisa-
which Flanders is recognised as a preferred
tion. It takes our dynamic business per-
hub by globally operating logistics providers.
formance into account and justifies the
The bundling of goods at this strategic loca-
confidence our customers place in
tion facilitates the optimisation of processes
Kuehne + Nagel’s sophisticated service
as well as the reduction of costs.
th
offering,” said Executive Chairman Klausmony. “The fact that Kuehne + Nagel is
Serving as a European import, warehousing and distribution centre
continuously expanding its service offer-
In line with Kuehne + Nagel’s full service
Michael Kuehne during the opening cere-
At the inaugurating ceremony (from left):
Klaus-Michael Kuehne, his wife Christine and
the Belgian prime minister Guy Verhofstadt.
Kuehne + Nagel World No. 1/2007
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Markets & Products
Another “first ever” oper
The assignment was for the delivery of two generator stators from Poland to the remote locations
of Pingwei and Longshan in the Peoples Republic
of China. The pieces had a weight of 365 tonnes
each – too heavy and too big for many of the
existing roads and bridges. Even the infrastructure
at the ports wasn’t constructed to bear such loads.
A first time ever for cargo of this dimension to be transported
inland, Kuehne + Nagel’s project specialist team together with
its Chinese partners inspected the roads and bridges to establish the best possible route – with the result that more than
40 bridges needed to be reinforced, and numerous electricity
and telephone cables needed to be lifted.
Too high, to heavy, too wide
Innovative engineering skills were required for this project. For
the entire operation it was of utmost importance to reduce
every possible centimetre in height and kilogram in weight.
The saddles carrying the generator stators, for example, were
re-constructed to reduce the overall height in order to pass
under bridges which were as low as five meters.
Optimal planning and organisation were necessary to ensure
the seamless deployment of the project. Transport permits
were obtained from all authorities in good time, and during
On the “hook”: one of the generators is unloaded from the ship onto a heavy-load
the transport, hundreds of steel plates were laid out to
strengthen culverts and small bridges, street furniture was
Piers gave reason for concern
temporarily removed as a precaution, and any minor damage
The project team also had to deal with the infrastructure at
to the roads was immediately repaired – all to the satisfaction
the ports, the strength of the piers giving reason for concern.
of the traffic police and the local communities along the route.
At the loading port, it was agreed to slide the cargo from the
transport vehicle under the reach of the vessel’s crane by
In order to avoid the heavy traffic in the Shanghai area, part
means of a hydraulic system, thereby minimising the overall
of the transport from the port of Shanghai to the Pingwei site
weight on the edge of the pier.
was done on the Yangtse river by barge, which had been
strengthened for the heavy cargo. The unloading from the
In China too, the authorities were concerned that the section
barge onto the waiting trailers up-river was then managed by
of the pier within the outreach of the ship’s crane was not
means of two huge mobile crawler cranes at a private harbour.
strong enough to withstand the combined weight of trailer
Kuehne + Nagel World No. 1/2007
Markets & Products
ation for Kuehne + Nagel
and cargo. A huge floating crane was ordered in Xingang,
which had a sufficient range to lift the generator stator onto
the heavy cargo trailer parked within safe distance from the
edge of the pier.
At times, several tractors were needed for the trailer, which
boasted 16 axles, 192 wheels and a hydraulic lifting system,
to climb the steep roads. At one location, the generator stator
even had to be lifted onto a bridge by two mobile cranes, as
the access ramp onto the bridge was too narrow and steep for
the loaded vehicle.
A sensation along the route
It is hardly surprising that this project caused a sensation
along the route and was watched with interest by thousands
of residents, as well as the police and the local authorities. The
project was completed within the committed period of 85
days, and thanks to its professional execution the customer is
already planning similar projects with Kuehne + Nagel and
the company’s Chinese partners.
transporter.
A real “eyecatcher”: the convoy on the road.
Obstacles had to be cleared.
Kuehne + Nagel World No. 1/2007
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Markets & Products
Advanced Retail Solutions
Storage & Call-off
Kuehne + Nagel continues to enhance the functionality of its logistics information portal,
KN Login. With the latest addition, companies from the retail industry can now align their
supply chains even closer to customer demand.
goods is moved closer to customer
demand. Kuehne + Nagel customers now
can manage such demand-driven call-offs
online thanks to the new Storage & Calloff functionality recently added to the
company’s IT-based order and supplier
management solutions.
Undergoes continuous development: the logistics information portal KN Login.
Asked about the advantages customers
can expect from the new functionality,
The challenge of having goods available at
tional shipment to national warehousing
Otto Peter, Global Head of Customer Solu-
the right place, at the right time and in the
and distribution.
tions with Kuehne + Nagel, cites improved
flexibility and cost savings amongst oth-
right quantity holds truer than ever in
today’s increasingly complex global mar-
Among the logistics concepts developed
ers. “By deferring inventory commitment
kets. Take retailers, for example. Managing
by Kuehne + Nagel to meet such chal-
closer to customer demand, companies
the highly fluctuating customer demand
lenges is Storage & Call-off, which allows
can for example minimise misallocation of
levels they face requires full transparency
for storage at an origin location until the
stock and subsequent costs. Also, they can
and control of the logistics chain, from pro-
articles are required at a distribution cen-
react faster to changing market opportuni-
duction in low-cost countries to interna-
tre or a store, and the actual call-off of
ties and customer demand.”
Kuehne + Nagel World No. 1/2007
Markets & Products
Large-scale training campaign
Exploiting the quality lead
For three years Kuehne + Nagel has been certified in accordance with Cargo 2000 Phase 2 – which
still places it in a unique position among the world’s logistics operators. To take full advantage of
this lead, the company is currently launching new airfreight products based on this quality standard.
The learning progress and success of the
participants was centrally coordinated
and monitored.
The response of the course participants
to this modern form of learning was
favourable throughout. And the result is
also highly satisfactory. The introduction
of the products in the 15 markets went
off smoothly and has been a great
success.
Modern e-learning.
In connection with the launch, it has
First, by means of specially developed
held its first large-scale staff training
computer-based training modules, the
campaign. A “blended learning” train-
employees were brought to a uniform
ing programme, in which traditional
level of knowledge about Cargo 2000
group instruction is linked with modern
and learned about the advantages of
forms of e-learning was chosen.
certification and market trends in airfreight. In the second phase, internally
The training scheme needed to embrace
trained instructors familiarised employ-
a total of 1,500 employees in the 15 key
ees in the individual subsidiaries with
markets selected for the product launch
the special features of the new products
– among them Germany, France, Hong
KN Express, KN Expert and KN Extend.
Kong, the UK and the USA.
Here the organisation team attached
importance to grouping participants
Learning in three phases
from the sales side and those from the
The Kuehne + Nagel Cargo 2000 prod-
operational side of business together. In
uct developers and the central Corpo-
a third phase, just before the introduc-
rate Training team were jointly responsi-
tion of the products in their own mar-
ble for drawing up the curricula. The sub-
kets, the participants worked through a
ject matter was taught in three phases.
certification module on the computer.
What is Cargo 2000?
Cargo 2000 is an IATA interest
group which brings together some
50 major airlines, freight forwarders
and ground handling agents with
the unique goal of implementing a
new quality management system
with uniform standards for the
worldwide air cargo industry, making the airfreight transport process
more reliable and measurable. The
implementation of Cargo 2000 comprises three phases: phases one and
two, post shipment audit of the airport-to-airport movement and interactive monitoring of the door-todoor movement, and phase three,
real-time transport management of
the transportation channel at individual piece level from door to door.
Kuehne + Nagel World No. 1/2007
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Markets & Products
In action for Formula One
Racing cars and pit lanes are normally off limits to the public. With the BMW Sauber F1 Team Pit
Lane Park the BMW Sauber F1 Team has enabled Formula One fans to get close up to the reality of
the pits, making motor racing an even more attractive experience at five venues in 2006.
Kuehne + Nagel ensured the seamless logistics.
The Pit Lane Park seen from the air at the
Grand Prix in Montreal.
Once inside, visitors can become a part
French national holiday – the distance
of the motor sport world which they oth-
from the Nürburgring to Barcelona had
erwise experience only from behind the
to be covered in a maximum of 24 hours.
fence. The illusion is heightened by real
By sophisticated time scheduling, the
mechanics, a 90-metre stretch of race
provision of two drivers for each truck
track and an unenclosed grandstand
and appropriate special permits, this job
right where the action takes place. For-
was completed without a hitch.
mula One for fans to touch and experience – that is the core of the innovative
From Silverstone, the Pit Lane Park was
scheme of the BMW Sauber F1 Team.
transported by air to the next race at
Montreal. Only 72 hours had been
For once to breathe the atmosphere of
the pits, to experience the start of a
Tight deadlines
allowed to complete this leg of the proj-
BMW Sauber F1 racing car close up, to
The KN Expo Service team in Munich, in
ect from door to door.
get the autograph of a Formula One
collaboration with the Kuehne + Nagel
driver. All that is possible in the BMW
offices in Atlanta, Montreal, London,
Sauber F1 Team Pit Lane Park. On race
Barcelona and Milan, had the job of
weekends, up to 41,000 visitors come to
transporting a total of 142 tonnes of
the 5,000 square metre installation
material to the race venues on different
which is erected at the venues of major
continents.
Formula One events.
The biggest challenge was the short
time that had been planned for the operations. For instance, – allowing for the
The parts of the park were airfreighted from
Silverstone to Montreal.
The volume amounted to 1,100 cubic
metres which was carried in two 747 B
200 freighters. In this case too the
good cooperation between Lufthansa
Cargo Charter and Kuehne + Nagel
proved its worth – BMW’s deadline
was met. At the end of the season,
the Pit Lane Park went into winter
storage with Kuehne + Nagel in
Munich.
(© BMW AG)
Kuehne + Nagel World No. 1/2007
Markets & Products
Spherical art
Radiating harmony and lightness, the works of the well-known Swiss metal sculptor Housi Knecht
are admired by art collectors all over the world. His most spectacular work so far is a giant water
and light sculpture which has stood in Naples, Florida, since the middle of 2006. Kuehne + Nagel
brought this work of art “Made in Switzerland” to the USA.
bilities to the limit – all the objects from
his studio, which is located close to the
city of Berne, are made or at least finished by hand.
For its transport from Switzerland to
Florida, Kuehne + Nagel packed the
sculpture in four containers after it had
been dismantled into twelve large and a
The sculpture arrives in Naples by truck.
number of smaller parts and prepared
for shipping by Housi Knecht himself.
On the leg from Berne to Basel they were
carried by truck. From there the journey
continued by rail to Rotterdam and
Antwerp, from where the containers were
shipped by sea. In Miami, customs clearance and delivery were again handled by
Kuehne + Nagel, after which the artist
took charge of the sculpture’s erection.
The utmost care had to be taken when
unloading the parts.
The sculpture with the promising name
“New Beginning”, which now stands in
the park of the international design centre in Naples, has a height of ten metres,
a width of eight metres and a weight of
five tons. The smallest element, the twometre movable sphere inside the sculpture which has been polished to a mirror
finish, already appears gigantic. Housi
Knecht and his assistants needed a total
of 2,500 hours to complete this stainless
steel sculpture which tested their capa-
The parts of the sculpture are assembled on site.
Kuehne + Nagel World No. 1/2007
27
28
Inside
Full steam ahead
for the Far East
In an interview with the Berner Zeitung, Klaus-Michael Kuehne explains the dramatic centrifugal
forces of booming world trade.
Exactly what role do you play in glob-
production plants to low-cost countries
alisation?
in the Far East, Eastern Europe and Latin
We optimise it. As a logistics company
America is continuing apace, and the
we provide the software for globalisa-
transported volumes are growing. We
tion. We organise and coordinate. What
are continually experiencing bursts of
we do used to be called forwarding. In
turnover. For us that is reflected in a very
the last 15 years that has become an
rapid increase of business, a large growth
incredibly complex business. We have
in sales revenue and excellent results.
neither trucks nor ships nor aircraft, and
Klaus-Michael Kuehne, “It is important to
stay vigilant.”
no containers either. We invest in our
Can this go on indefinitely?
employees. They handle the overall man-
If the situation remains normal, no end
agement of goods flows for our cus-
to this development can be seen. Of
tomers including deliveries from all
course, we are not on a one-way street,
kinds of subcontractors, as, for instance,
that is something I am continually
in the automotive industry. Today logis-
preaching to our staff. We must not
tics means that we often manage a pro-
grow too sure of ourselves. Setbacks can
duction process which is spread halfway
always happen. Nobody knows whether
Mr Kuehne, you are one of the winners
around the world, from the raw material
China will suddenly be seized by politi-
from globalisation, are you not?
to the finished product, which is then
cal upheavals, or how a sudden explo-
Klaus-Michael Kuehne: Yes, that is cer-
distributed via the sales channels and
sion of the Middle Eastern powder keg
tainly true. World trade is the determin-
supplied to the end customer by retail.
could impact upon the world economy. It
is important to stay vigilant.
ing factor for our business, and it is
growing at a tremendous rate, much
The global division of functions in the
faster than world economic output. That
production and distribution of con-
Few people have their finger closer to
is what really characterises globalisa-
sumer goods has undergone a dizzying
the pulse of globalisation than you do.
tion: An ever-better linking of all parts
expansion. From the cotton to the fin-
What do see happening at the
of the globe, a constantly expanding
ished product, a pair of jeans covers a
moment?
exchange of goods, and a world that is
distance of 19,000 km. Is globalisation
Acceleration and growth. To put it in
growing ever closer together. We are the
now reaching saturation point?
graphic terms, the pulse is growing
beneficiaries.
There is no sign of that. The relocation of
faster and stronger.
Kuehne + Nagel World No. 1/2007
Ever bigger freighters with more and more containers travel across the world’s oceans.
How is that manifested?
in turn fuels demand for consumer goods.
ting bigger and bigger, and capacities
Today everyone is trying to make goods
Because more and more Indians and
are constantly expanding – not, however,
move faster. As logistics providers, we
Chinese are becoming consumers, new
without negative effects. The globalisa-
notice that in the attitude towards
markets are created which also stimulate
tion euphoria in container transport is
inventories, for instance. If a customer
production and exports in the industrial
leading the shipping operators to
has goods in a warehouse, that means
countries – which automatically leads to
behave irrationally.
he has capital tied up and that he has to
faster transport over longer distances.
wait before he can do business. That is
In what way?
bad for him. Things must move quickly.
Mainly by sea: 95 per cent of all goods
When capacity utilisation is good, the
He needs big, optimally located ware-
are shifted from continent to conti-
ship owners become over-exuberant.
houses from which he can quickly and
nent by ship.
Now that they see world trade booming
flexibly supply his markets. That pro-
Yes, the frenzied pace of globalisation is
they are ordering ships – not just one but
motes and speeds up the exchange of
impressively evident in maritime con-
all of them. This rapidly leads to excess
goods.
tainer transport. Containerships are get-
capacity – and because the ship owners
Over ever longer distances?
That’s how it is. We are experiencing
A headlong pace
an unstoppable chain reaction that
The highways of globalisation are far away from Switzerland. On the sea.
And they are growing at a breathtaking speed. World container traffic
is expanding by more than ten per cent a year, over three times as fast as
the world economy. More and more ships with a length of up to 400 metres
are traversing the world’s oceans, and in 2006 they will carry more than
400 million containers. The ports are collapsing under the mass onslaught of
ships. In the next five years China intends to pump 49 billion dollars into the
expansion of its ports. Today the Euroports of Rotterdam and Hamburg are barely
among the top ten and are already outranked by Singapore, Hong Kong,
Shanghai, Shenzen, Busan (South Korea) and Kaohsiung (Taiwan).
embraces the whole world and takes
place roughly as follows: In growth
countries like China and India a great
deal is produced and exported, which
generates consumption. The integration
of these countries into world trade leads
to healthy profits and rising wages, which
Kuehne + Nagel World No. 1/2007
30
Inside
see a coming fall in capacity utilisation
queue for two or three days. That is very
costs and taxes are a major factor, as is
they are already reducing freight rates
expensive and a brake on the economy.
the question of whether the European
now in order to secure their share of the
My home town Hamburg, for instance,
countries are able to improve the com-
market. So the shipping industry could
could do much more business if the port
petitiveness of their economies. I can see
suddenly find itself in a very bad way –
had more capacity. The ever bigger ships
that something is now moving, but it is
particularly since there are maritime car-
can only berth in deep-water ports that
moving late. The centre of power in this
riers who adopt a highly irrational policy
are located on the open sea and not on
world will shift to the Far East. That is
in order to gain a foothold in this mar-
a river. However, European ports com-
where the winners of globalisation are.
ket. In China, for instance, there are
pensate for their disadvantages of size
large shipping companies which are still
in relation to the Far Eastern megaports
In China?
partly state-owned and therefore have
with better management and a more
There above all, quite definitely. Without
enormous staying power in the econom-
efficient infrastructure.
exaggeration, China is the engine of the
world economy. Its enormous exports to
ic fight for survival.
Globalisation could lead to a kind of
Europe and North America have created
But on the other hand merciless price
“world war over wealth”. How serious-
tremendous new flows of goods which
dumping gives a further boost to glob-
ly does expanding world trade threat-
are still growing at a spectacular rate.
al trade.
en Europe’s prosperity?
And that will continue. We were very
Certainly. Low freight costs make it even
Europe clearly loses from globalisation,
quick to recognise the opportunities in
more profitable to import products from
since the high-wage countries can no
China, first of all from Hong Kong where
China to Europe. However, it must be
longer compete in many fields. Ever
we have had our own company for 40
borne in mind that freight costs account
more production will be shifted abroad,
years. From the end of the seventies we
for only a relatively small proportion of
resulting in high unemployment. That is
set up our own network of offices, and
the total costs. Low transport costs are a
the process that is now taking place, and
two years ago we were one of the first
very important factor where cheap
one has to be pessimistic.
companies to obtain a full licence.
How pessimistic?
India has now started its race to catch
The tremendous pace of growth in
Well, I don’t despair of the situation. The
up in China’s slipstream.
maritime transport is also leading to
lights in Europe will not go out, for our
This is a new player whose full impact
congestion. Where does globalisation
high standard of education and good
Europe has yet to feel. India is taking off
get held up?
high-tech research will enable us to stay
technologically and more and more inter-
At the ports. They are the bottleneck of
in the race. What is important in my
national corporations are developing
world trade because their expansion is
view is that Europe should not become
there, which will come to Europe and
not keeping pace with the exploding
economically fragmented but act as a
play a major role in the world economy.
transport volume. This means that
unit, for in isolation each country will go
In India itself, a middle class of several
incoming containerships may have to
under by itself. Of course, the high social
hundred million people will develop,
goods are concerned.
creating a much bigger consumer market.
Latin America is hardly ever mentioned
in connection with globalisation.
Because it is a sleeping giant. Latin
American countries are politically more
unstable and less clearly oriented
towards a market economy than China
or India. But in my opinion Latin America will acquire a growing importance for
the world economy both as a location for
Kuehne + Nagel World No. 1/2007
Inside
industry and as a consumer market.
Quite simply because of its size and its
need to catch up. In contrast to Africa,
which lags so far behind both in political
terms and with regard to the development of its population that no major
advances can be expected in the foreseeable future.
Globalisation: containers pile up in the ports.
If I view the position as you state it on
a map of the world, I see that Europe is
More goods need to be shifted by rail if the
I believe that humanity will always find
coming under economic pressure from
roads are to be saved from acute gridlock.
solutions to such problems. It is clearly
an endless battle. Climate change is a
all sides.
Yes, and don’t forget Eastern Europe.
So Switzerland is doing the right thing in
reality and it is being fought too slowly
Partly due to the eastward expansion of
building NEAT, the new trans-Alpine rail link.
and with insufficient resolution. Human-
the EU, but also because these countries
Yes, it is an important contribution to
ity is awakening very late, but I am sure
produce cheaply and also have a reser-
the development of inland transport in
it will still find a way out.
voir of well educated engineers and
Europe. And because Switzerland is a
dependable workers, Western European
beautiful country and an attractive
You are in close contact with globalisa-
firms will continue to shift their produc-
tourist destination, it is also right to
tion. What place has impressed you
tion to Eastern Europe, which will auto-
divert as much traffic as possible onto
most?
matically give a further boost to its eco-
the railway. It is remarkable that it is not
Shanghai. Its growth, its modernity, the
nomic strength and its consumer market.
a member of the EU although it is a part
pace of life there. It’s in the air there,
Eastern Europe will experience above-
of Europe. But it is skilfully pursuing its
24 hours a day. Very impressive.
average growth for some time to come.
pragmatic middle way and at present it
is not badly positioned.
But your headquarters in Schindellegi
is a long way from there.
Above-average growth also means an
above-average increase in transport.
Back to the growth of transport. The prob-
That’s a good thing. We have been in
There is a tendency to gloss over the eco-
lem needs to be tackled at the roots.
Switzerland for 31 years, first in Pfäffi-
logical consequences of globalisation.
By restricting transport, do you mean?
kon although we really wanted to go to
Zurich, the big city. But there we had
Your equation is correct. More transport
means more pollution. Trucks are the
Exactly.
trouble with work permits, while we
biggest problem. Although stricter envi-
Then it would be necessary to restrict
received every encouragement from the
ronmental standards are progressively
trade and globalisation, as the oppo-
Canton of Schwyz. That is how Schindel-
being enforced, my position is clear: Far
nents of globalisation advocate. But
legi came to be our headquarters.
too much is transported by road. The
they will not get their way, for it is ulti-
A good place to come back to and man-
problem is that the railways give priority
mately the economy that determines
age things away from the bustle of the
to passenger traffic. Freight has to wait,
human destiny, and people prosper only
city. An arrangement that has proved
and, furthermore, every railway in Europe
if the economy prospers. So these draw-
highly successful.
has a policy of its own. The expansion of
backs have to be accepted. Anything
rail capacity takes a long time, also
else would be playing with fire and
because of the enormous investments.
would lead to unemployment and
But it must take place. On the other hand
impoverishment.
we must not delude ourselves. There is no
way we can reduce truck traffic, because
If climatic collapse does not overtake
the volume of growth is simply too great.
us first.
Published in the Berner Zeitung
on December 2, 2006.
The interview was conducted by Jürg Steiner.
Kuehne + Nagel World No. 1/2007
31
32
Lorem Ipsum
Round
the World
Tsunami aid from Kuehne + Nagel employees
“In supporting the SOS Children’s Village in Banda Aceh, we
are sure that with the donations of our employees we are
making a long-term, sustainable contribution to the reconstruction of the region,” Klaus-Michael Kuehne, Executive
Chairman of the Board of Directors of Kuehne + Nagel International AG, confidently said.
According to official estimates, in the Aceh region some
30,000 orphaned children are still living in provisional housing. “The aim here is to enable the children to grow up in a
protective framework that cares for their mental and physical
well-being,” said Christine Leimgruber, Managing Director of
the non-profit Swiss foundation Schweizer Freunde der
SOS-Kinderdörfer.
Fishing boats for Indonesia
Like many others, these children from Banda Aceh are delighted
about the new SOS Children’s Village.
Their readiness to help was enormous. In the weeks after the
tsunami disaster of December 2004, the staff of the Kuehne +
Nagel Group and the company contributed roughly equal
shares of a donation amounting to 550,000 Swiss francs.
Besides various smaller projects, the majority of the money
has now gone towards the construction of an SOS Children’s
Village and will thus benefit a sustainable reconstruction
project in the part of Indonesia most severely affected by
the tidal wave.
In September 2006 the employees of the Kuehne + Nagel
national organisation in Indonesia donated seven fishing
Under a partnership agreement signed with the foundation
boats for a fishing village that was completely destroyed by
Schweizer Freunde der SOS-Kinderdörfer (Swiss Friends of the SOS
the tidal wave on the island of Pulo Aceh 25 kilometres from
Children’s Villages), Kuehne + Nagel is meeting the costs of build-
Banda Aceh. Construction of the fishing boats was managed
ing and equipping a kindergarten and one of the 15 family hous-
by Austin International Rescue Operations (AIRO), a small
es in the village which will provide a home for roughly 150 chil-
non-profit organisation from Texas. AIRO was founded just a
dren. The construction work will be completed in April 2007; both
month after the tsunami, and specialises in the construction
buildings will bear the name of the sponsor, Kuehne + Nagel.
of traditional Acehnese fishing boats.
Kuehne + Nagel World No.
Nr. 1/2007
1/2007
Round the World
Awards in the Far East
In the past year Kuehne + Nagel was the proud recipient of no
less than four major awards in the Asia-Pacific region.
In Singapore, within the framework of the Asia Logistics Awards,
the company was voted “Seafreight Forwarder of the Year” for
the third time in succession. In their assessment, the panel of 15
independent judges from Asia, Europe and the USA took into
consideration parameters such as customer service, flexibility,
global network, value-added services and the introduction of new
products and services. The prestigious award underlines the
position of Kuehne + Nagel as a leading seafreight provider both
in the Asia-Pacific region and in the whole world.
The national Kuehne + Nagel company in Singapore was
At the prize presentation: Tadhg Meaney (left), National Manager
Kuehne + Nagel in Singapore, receives the prize from Vikas M. Khan,
President und CEO, Emirates Shipping Line.
named “Best Fast Moving Consumer Goods Logistics
Nagel Thailand, Jens Drewes. In addition to good conditions
Provider”. In this case the jurors were customers from the
of employment, pay and medical benefit systems, the award
FMCG sector who assessed the ability of the service providers
also looks into the long-term employment and development
to supply integrated, industry-specific logistics solutions. The
possibilities for staff. Kuehne + Nagel was the only logistics
assessment took into consideration criteria such as cost-effi-
provider chosen among thousands of firms in the country.
ciency, level of service and flexibility.
China Logistics Summit & Awards was the name of the event
For the second year running Kuehne + Nagel received the
which took place in China for the first time and where
award “Outstanding Enterprise in Labour Welfare” which was
Kuehne + Nagel was honoured with the title of “Seafreight
presented in Bangkok to the Managing Director of Kuehne +
Forwarder of the Year”.
Shipping a screw press from the USA to Germany
USA to Bärenstein/Saxony in Germany.
By their efficient cooperation, the
Kuehne + Nagel offices in Cleveland,
New York, Bremen and Chemnitz handled this project to the complete satisfaction of the customer. From the packing of the freight at the maker’s factory,
transport by low-loader (photo) to New
York port and shipment to Bremerhaven,
No everyday sight: a transport of this length.
to final delivery in Germany by a combination of river barge and low loader
A screw press weighing 115 tonnes: The firm of ESKA Automotive GmbH in Chem-
with transhipment at the Elbe port of
nitz entrusted Kuehne + Nagel with the transport of this load from Ohio in the
Dresden.
Kuehne
Kuehne ++ Nagel
Nagel World
World No.
Nr. 1/2007
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34
People & News
Friends for 50 years thanks to Kuehne + Nagel
It is now 50 years since the then
personnel manager Erich Kessler
invited four Kuehne + Nagel apprentices to his home. The hours they
spent there were the beginning
of an enduring friendship between
these young men which later came
to include their wives and children
and is still very much alive today.
Although during the early sixties the
four were unable to meet due to various postings abroad, they always
kept in touch by mail. And since 1966
the families have met regularly once
Klaus-Michael Kuehne (centre) and his wife Christine (left) invited the friends to join them
on a trip in the company’s own launch.
a year. In the jubilee year the friends
owner Klaus-Michael Kuehne invited
Nagel’s own launch followed by
met in Hamburg, where the company
the group to a trip on Kuehne +
lunch.
Great award for trainee Jasmin Haas
Jasmin Haas (fourth from the left) at the official ceremony.
Following her outstanding results in
best trainee in her chosen profession of
be presented annually. At the ceremony
the final examination of her appren-
Management Assistant for Forwarding
for the presentation of the certificates in
ticeship, Jasmin Haas (22), who
and Logistics.
Berlin in December, Germany‘s Chancel-
began her training at the Kuehne +
The German Conference of Chambers of
lor Angela Merkel addressed roughly
Nagel office in Frankfurt after gradu-
Commerce and Industry (IHK) first intro-
1,000 invited guests in an official
ating from high school in August
duced this “National Award for the Best in
speech. Our congratulations on this
2004, was selected as Germany’s
IHK Professions” in 2006, and it is now to
great award, Ms Haas!
Kuehne + Nagel World No. 1/2007
People & News
Otto Peter – 40 years with Kuehne + Nagel
container services were established and trans-Siberian container
traffic between Japan and Europe was developed. In 1975, Mr
Peter went to Hong Kong, where in the seafreight sector he laid
the foundations of Kuehne + Nagel’s own NVOCC operation
under the name “Blue Anchor Line”. In 1982, he was called back
to Switzerland, where from then on he was involved in the management of the group’s seafreight activities, holding the post of
Regional Seafreight Manager for Western Europe from 1990.
Otto Peter (right) early in his career, with colleagues from Kuehne +
Nagel.
Since 2002, Otto Peter has been responsible for web-based information logistics products as Global Head of Customer Solutions.
His career with Kuehne + Nagel began 40 years ago in
Canada. Today, Otto Peter works in Switzerland, his home country, where he celebrated his jubilee at the company headquarters in Schindellegi.
Mr Peter can look back on a successful and exciting time with
Kuehne + Nagel. He began in the customs department in
Toronto, where he was immediately placed in charge of the
import section at the time when the first maritime carriers began
shipping cargo across the Atlantic in containers. After his period
in Toronto, his work took him to the Far East, where he spent four
years in Japan as Kuehne + Nagel representative in charge of
seafreight business. During these years, the first consolidated
Jubilee congratulations (from left): Klaus-Michael Kuehne, Otto
Peter, Reinhard Lange, COO Sea & Air Logistics, and Klaus-Dieter
Pietsch, Human Resources Manager of the Kuehne + Nagel Group.
Bundesverdienstkreuz for Helmut Ramsel
Helmut Ramsel, who occupied senior positions in Kuehne +
Nagel Germany from 1991 to 2005, was presented with the
Bundesverdienstkreuz by the Mayor of Bielefeld, Eberhard
David, on 26 June 2006.
This prestigious honour is conferred by the German Federal
President upon persons who have done outstanding honorary
work for the public good. In addition to his professional activity, for almost four decades Ramsel held honorary positions both
related to his profession and in the private sphere. For many
years he was delegate for the Gütersloh district in the
Bielefeld’s mayor Eberhard Davis (left) presented the Bundesverdienstkreuz to Helmut Ramsel.
Westphalia-Lippe Transport Industry Association, and also a
Committee of the German Transport Forum in Berlin, in which
member of the Transport Committee of the East Westphalia-
capacity he collaborated in the drafting of the position paper on
Lippe Chamber of Industry and Commerce, where he was active
“Conditions of competition in long-distance road transport in
on various examination boards of the Chamber. On a suprare-
the European Union”. Since April 2005, Helmut Ramsel (born
gional level he was active for several years in the Road Steering
1945) has performed special duties for Kuehne + Nagel.
Kuehne + Nagel World No. 1/2007
35
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