World - Asia-Pacific Clearing the way - Kuehne + Nagel
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world
M A G A Z I N E NO . 1 / 0 8
Asia-Pacific
China and India are the powerful growth engines
Clearing the way
Kuehne + Nagel supports solar taxi project
2 CONTENTS
..............................
Contents 4 Focus
The Asia-Pacific organisation
20 Markets & Products
300 tonnes of extreme cargo fill three
Antonov bellies
21 On the glass road
22 Nacora: continued growth
24 Clearing the way for solar energy
26 Beiersdorf relies on Kuehne + Nagel
27 Partnership with Carrefour in Turkey
28 Inside
Imprint Contented shareholders
Published by
Kuehne + Nagel International AG 29 Klaus Herms celebrates 40 years
P.O. Box 67, CH-8834 Schindellegi
Tel. +41 (0)44 786 95 15 with Kuehne + Nagel
Fax +41 (0)44 786 96 90
E-mail: world@kuehne-nagel.com
30 Round the World
Design/layout
Kaufmann Kommunikationsdesign
34 People & News
Print
Wilhelm Zertani
Druckerei und Verlag
D-28001 Bremen
Frequency
Two times a year
Language
English and German
Print run
33,000
KUEHNE + NAGEL . . . . . . . WORLD NO. 1/2008
EDITORIAL 3
.......
Dear The dynamic economies of the Far East are generating high transport and logistics
volumes, with India and China leading the way. This makes the Asia-Pacific region,
upon which this issue of the World Magazine focuses its attention, an important
Readers area of activity for the Kuehne + Nagel Group.
As is the case everywhere, our staff in this part of the world are fully prepared to
deal with the ever greater complexity of supply chains, including rapid develop-
ments in the field of information technology, and are always ready to adapt to the
constantly changing demands of customers.
Internationally operating customers as well as domestic manufacturers and retailers
are increasingly demanding efficient logistics solutions and innovative lead logistics
concepts such as those offered by Kuehne + Nagel. In this region there is also a
growing demand for our range of niche products. Whatever services a customer
requires, they can be sure that Kuehne + Nagel is fully committed to meeting their
needs, wherever they are located.
It is precisely for this reason that globally operating companies such as Beiersdorf,
Gloria Jean’s Coffees and Carrefour have chosen Kuehne + Nagel as their logistics
provider. In this issue you can learn exactly what these operations involve, and also
read other fascinating articles from the world of Kuehne + Nagel.
I wish you an enjoyable read.
Yours
Klaus Herms
Chief Executive Officer
KUEHNE + NAGEL . . . . . . . WORLD NO. 1/2008
The Asia-Pacif i
The Asia-Pacific organisation is growing fast. This is reflected in the impressive business growth
rates as well as in the number of employees: The workforce in the region, which now comprises
5.902 people in 143 locations, has almost quadrupled in size since 1999. Specifically in the two
...............................................
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Afghanistan
...............................................
Cambodia
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Indonesia
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Malaysia
...............................................
Locations: 1 Locations: 1 Locations: 10 Locations: 5
............................................... ............................................... ............................................... ...............................................
Employees: 1 Employees: 9 Employees: 184 Employees: 220
............................................... ............................................... ............................................... ...............................................
Warehouse space: – Warehouse space: – Warehouse space: – Warehouse space: 22,000 sqm
............................................... ............................................... ............................................... ...............................................
Australia
...............................................
China
...............................................
Japan
...............................................
Maldives
...............................................
Locations: 9 Locations: 37 Locations: 10 Locations: 2
............................................... ............................................... ............................................... ...............................................
Employees: 354 Employees: 2,836 Employees: 238 Employees: 13
............................................... ............................................... ............................................... ...............................................
Warehouse space: 50,400 sqm Warehouse space: 44,900 sqm Warehouse space: 65,600 sqm Warehouse space: 1,400 sqm
............................................... ............................................... ............................................... ...............................................
Bangladesh
...............................................
India
...............................................
Korea
...............................................
New Zealand
...............................................
Locations: 2 Locations: 23 Locations: 5 Locations: 4
............................................... ............................................... ............................................... ...............................................
Employees: 112 Employees: 701 Employees: 119 Employees: 136
............................................... ............................................... ............................................... ...............................................
Warehouse space: 2,000 sqm Warehouse space: 60,100 sqm Warehouse space: 29,900 sqm Warehouse space: 14,500 sqm
............................................... ............................................... ............................................... ...............................................
KUEHNE + NAGEL . . . . . . . WORLD NO. 1/2008
c or ganisation
BRIC countries China and India, there are plans for a further major expansion of the Kuehne + Nagel
network from 60 to 85 branches by 2010. The driving force behind the expansion plans is the need
to make optimal logistics solutions available to every customer.
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Pakistan
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Sri Lanka
...............................................
Vietnam
...............................................
Locations: 5 Locations: 2 Locations: 6
............................................... ............................................... ...............................................
Employees: 58 Employees: 30 Employees: 85
............................................... ............................................... ...............................................
Warehouse space: – Warehouse space: – Warehouse space: 6,700 sqm
............................................... ............................................... ...............................................
Philippines Taiwan
............................................... ...............................................
........................................................
Locations: 6 Locations: 5
............................................... ...............................................
Employees: 105
...............................................
Warehouse space: 7,600 sqm
...............................................
Employees: 208
...............................................
Warehouse space: 10,000 sqm
...............................................
Asia-Pacific
........................................................
Singapore Thailand Locations: 143
............................................... ...............................................
........................................................
Locations: 5 Locations: 5
............................................... ............................................... Employees: 5,902
Employees: 237 Employees: 256 ........................................................
............................................... ...............................................
Warehouse space: 17,100 sqm Warehouse space: 7,000 sqm Warehouse space: 339,200 sqm
............................................... ............................................... ........................................................
KUEHNE + NAGEL . . . . . . . WORLD NO. 1/2008
6 FOCUS
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Customer focus is the key
Andy Weber, Regional Manager Asia-Pacific, on the characteristics of the region, the company’s
objectives and his recipe for success in these dynamic markets.
Mr. Weber, as Regional Manager What are Kuehne + Nagel’s develop-
you have been responsible for the ment plans for the Asia-Pacific
development of Kuehne + Nagel in region?
the Asia-Pacific region for nine The economic momentum from the coun-
years. How has the organisation tries of the region will open up new busi-
changed during that time? ness opportunities for ourselves and for
Both our network and our service port- the whole Kuehne + Nagel Group. Our
folio have grown substantially. The aim is to successfully expand our leading
Kuehne + Nagel organisation in the Far position in sea- and airfreight in the Asia-
East already comprised 18 national com- Pacific region. At the same time we want
panies in 1999, just one less than today, to press ahead with the further deve-
but since then its workforce has increased lopment of contract logistics – the third
nearly fourfold. Presently, around 5,900 important pillar of our business –
people operate in more than 140 loca- through out the region. We currently
Swiss-born Andy Weber began his career tions. We want to continue this dynamic operate a warehouse area of approxi-
with the Kuehne + Nagel Group in Johan- growth and further increase the density mately 340,000 sqm in 55 locations in
nesburg in 1982. This posting was followed of our network; by 2010 we plan to be 14 countries.
by management positions in Japan, Iraq and represented in roughly 85 locations in
Ivory Coast. In 1994 Weber took over the India and China alone. The driving force behind our expansion
management of the national company in plans is the need to always be close to
Taiwan, and only three years later he was What new demands do your cus- our customers and to offer them an opti-
appointed Managing Director of Kuehne + tomers have, and what are you and mal logistics infrastructure, which sup-
Nagel Ltd. Hong Kong, to which the branches your staff doing to accommodate ports them in the development of new
in China also belonged. Since July 1999 he them? production or sales markets. Our growth
has been responsible for business operations The ever more complex global flows of plans accordingly focus primarily on the
in the whole of the Asia-Pacific region. goods and the tremendous advances in two BRIC countries China and India. But
the field of information technology have we also want to strengthen our market
brought notable changes to the require- position in other countries of the region.
ments of our customers. Previously it
was sufficient to carry out transport You mentioned China and India.
..................................... from A to B and to offer the customer What common features and differ-
“As a result of the added value by means of supplementary ences do you see between these two
services, whereas today a great deal booming economies, and what is
innovative power of our
more is demanded. Besides intelligent their significance for Kuehne +
Group, we are able to full service solutions from a single source, Nagel’s logistics business?
offer effective solutions.” customers want comprehensive supply Both are very dynamic markets. But each
..................................... chain transparency and sophisticated, is unique in its way. In day-to-day busi-
standardised IT applications for the ness in China, for instance, it is very
A S I A - PA C I F I C management of procurement, production important to observe the correct eti-
and distribution processes. As a result of quette in relations between customer
the innovative power of our Group, we and contractor, while Indians, on the
are able to offer effective solutions. other hand, like to do business with
friends.
KUEHNE + NAGEL . . . . . . . WORLD NO. 1/2008
FOCUS 7
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In a direct comparison between the two tics specialists with the necessary poten-
“The driving force behind our countries, infrastructure clearly emerges tial to be trained in-house and retained
expansion plans is the need to as one of the big challenges in India. long-term. It is expected that China alone
Here a good deal must be done in order will need another 400,000 logistics
always be close to our customers
to catch up with China and create opti- specialists in the coming years.
and to offer them an optimal mum conditions for logistics.
logistics infrastructure, which It is important that we are able to offer
supports them in the deve- Kuehne + Nagel is nevertheless achiev- our customers in emerging markets the
lopment of new production or ing double-digit annual growth in both same service and process standards as in
markets. And that, at the same time, is the west.
sales markets.” one of the challenges that faces us in
.......................................
the medium term: to find enough logis- A brief glance into the future: What
else can customers expect from
Kuehne + Nagel in the Asia-Pacific
region?
To meet the constantly changing demands
of our customers, besides strengthening
our core business activities we also plan
to pursue the offering of niche solutions,
such as those for the hotel and casino
industry, beverage logistics or the perish-
ables business. We also want to expand
our capacity as a lead logistics provider
and offer logistics solutions with inno-
vative products and services.
The Group’s successful operations in the
Asia-Pacific region are directed from the head-
quarters (front right) in Hong Kong.
KUEHNE + NAGEL . . . . . . . WORLD NO. 1/2008
8 FOCUS ..............................
FOCUS 9
.......
On course for growth
China and India are the powerful engines that are driving the economies of the Asia-Pacific
region and generating impressive growth rates. Kuehne + Nagel is firmly established in these
two BRIC countries, whose substantial transport volume benefits the organisation all over the
world. The two markets and other countries across the region are featured in the following
pages.
10 FOCUS
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China
predict a medium- or long-term reduction
of goods flows in China. A good deal is
being done to strengthen the infrastruc-
The figures are staggering: In 2007 China’s economy grew ture, in which several hundred billion US
by 11.4 per cent and its gross domestic product (GDP) is the dollars are to be invested in the next five
years. Three of the world’s ten biggest
world’s fourth biggest after the USA, Japan and Germany. ports are now on the Chinese mainland.
Furthermore, with approximately 1.3 billion people China is With a container volume of more than 26
the country with the world’s largest population. million TEU and 20 per cent growth, in
2007 Shanghai overtook Hong Kong to
become the world’s second biggest con-
tainer port (Singapore is in first place).
The combined volume handled by all Chi-
nese mainland ports amounts to more
than 100 million containers per year.
New air terminals were recently opened
in Shanghai and Beijing, and the Chinese
government has published plans to con-
struct a total of 97 new airports by 2020.
Kuehne + Nagel has been present in
China since 1979. Its experience, compre-
hensive range of services and over 2,800
employees (including Hong Kong and
Macau) make it one of the country’s
leading logistics companies. In March
2004 it was the first global logistics
provider to obtain the Class A Forwarders
Licence – a milestone for the develop-
ment of its business in China. The licence
International trade is key for China in its The Kuehne + Nagel headquarters in enables Kuehne + Nagel to operate on
role as a mass producer of finished Shanghai. an independent basis in China and to
goods; it is regarded as the “workbench directly provide customers with the full
of the world”. Another factor is the grow- 1.5 million visitors has already been in range of international forwarding and
ing purchasing power of the country’s progress for some years. The logistics logistics services. Today the company is
population, which is leading to a steady sector is naturally benefiting from these represented in 37 locations in 21 cities;
increase in consumption and is reflected developments and growing at an impres- eight more branches are to be added by
in the growing number of car owners. The sive rate. It now contributes 18 per cent the end of 2008. Last year a special high-
Olympic Games in August in Beijing have of the country’s GDP. light for Kuehne + Nagel was the open-
also given a boost to the economy: Work ing of two new warehouses in Shanghai
on the construction and expansion of Although a slowdown in the world econ- and Tianjin for two of its key contract
facilities to accommodate the expected omy is expected in 2008, experts do not logistics customers in China: Siemens
and the US retail chain Best Buy.
............................................................................
Just as anywhere else, the law of supply
CHINA and demand also applies in China, and
there have recently been notable rises in
the costs of labour and raw materials.
Particularly against this background,
domestic manufacturers, retailers and
international companies are increasingly
KUEHNE + NAGEL . . . . . . . WORLD NO. 1/2008FOCUS 11
.......
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RUSSIA BRIC are the initial letters of the countries Brazil, Russia, India and
BRIC COUNTRIES .......
China. In view of their fast-expanding economies with growth rates ranging from 5 to 11
per cent per year, experts forecast that by 2050 they will overtake the G8 countries
CHINA
INDIA (Germany, France, UK, Italy, Japan, Canada, USA and Russia). Roughly 40 per cent of the
world’s population (2.8 billion people) live in the BRIC countries. They now contribute
BRAZIL
roughly 10 per cent of world GDP (approximately 33 trillion euros).
..................................................................................................................
The container port of Yantian near Hong Kong.
demanding efficient and cost-effective
supply chain solutions ranging from inte-
grated 3PL to comprehensive lead logis-
tics services from a single source such as
are offered by Kuehne + Nagel.
The objectives for the coming years:
Kuehne + Nagel aims to maintain its
position as market leader in seafreight,
make a committed effort to expand its
airfreight business, and – as a third pillar
– expand its position in contract logistics.12
.......
The Kuehne + Nagel head office in Delhi.
Kuehne + Nagel started operating in
India in 1987 through a joint venture
with a local partner, and founded its
own national company in 1997, which
now employs roughly 700 people and
has 23 branches in this multi-ethnic
country; 17 more are to be opened dur-
ing the next 24 months.
The undisputed market leader in sea-
freight, the company also ranks among
the top providers in airfreight and in
contract logistics. Kuehne + Nagel offers
tailor-made solutions to customers with
special requirements such as the auto-
motive, aviation, pharmaceutical, paper
and hotel industries.
Its clear strategy gives Kuehne + Nagel
an edge over its competitors in a market
which – due to its rapidly growing middle
India class (an estimated 300 million people) –
shows a remarkably even balance be-
t ween imports and exports. The national
More than 1.1 billion people live in India, and 34 per cent of
company was named “Best Seafreight
them are under 18 years old. The country has a reputation Provider” and “Runner-Up Air Freight
as a “think tank” and has a steady output of world-class Provider” in 2007.
scientists and engineers. It is also well known for its software
production and as the world’s biggest producer of generic The Indian ports handled a total of
6 million TEU in 2007, and this figure is
medicines. Its gross domestic product (GDP) grew by 9.4 per
expected to rise considerably in the near
cent in 2007, making it the country with the second fastest future. A major infrastructure programme
economic growth after China. The logistics sector currently is in progress to meet the fast-growing
accounts for 13 per cent of the GDP and is growing rapidly. demands of the market and alleviate
existing bottlenecks. New terminals are
Now estimated at 100 billion US dollars, it is expected to
under construction at the Jawaharlal
double by 2020. Nehru Port in Mumbai and in Cochin,
and the port of Chennai is also being
expanded. In addition, the government
........................................................................... is taking steps to facilitate private
investments in infrastructure projects
INDIA and thus contribute towards a sustained
improvement.
In airfreight, India strives to become an
important cargo hub. The number of
passenger and cargo aircraft forecast for
KUEHNE + NAGEL . . . . . . . WORLD NO. 1/2008FOCUS 13
.......
the next two years will provide logistics ceuticals and other key markets are
companies with substantially more trans- placing their logistics operations in the
port capacity. hands of specialists in order to optimise
their costs and efficiency. For an inter-
With its wide range of industries the national fashion brand, for instance,
Indian market offers a multitude of Kuehne + Nagel handles a production
opportunities for an organisation such output of more than 2 million articles
as Kuehne + Nagel, which is able to pro- per season. The service includes invento-
vide customers with a comprehensive ry management, sorting, order picking,
portfolio of services from integrated packing, labelling, nationwide distribu-
end-to-end solutions to value-added tion to 160 outlets, and export to vari-
services such as buyer’s consolidation or ous countries all over the world.
sophisticated LCL seafreight products.
Kuehne + Nagel’s national distribution What are Kuehne + Nagel’s plans for
network is also developing well. The 2008 in India? Major objectives include
company now handles roughly 5,000 an enlargement of the network by ex-
shipments per month and the trend is tending existing customer accounts to
moving away from distributing within other locations, and expanding of niche
individual states towards pan-Indian dis- services such as those for the hotel or
tribution – a major challenge in a coun- food industries. The optimisation of dis-
try with an area of 3.3 million square tribution activities is also planned to
kilometres. continue. Not least Kuehne + Nagel is in By the end of this year, Kuehne + Nagel will
the process of building a 22,000 sqm have 85,000 sqm of warehouse space at its
Kuehne + Nagel India foresees particu- warehouse in Chennai for a telecom cus- disposal in India.
lar opportunities in the contract logistics tomer which is scheduled to begin oper-
and the lead logistics sectors, as more ation in September. By the end of the
and more local and also multinational year a total of 85,000 sqm warehouse
companies from the fields of telecommu- space is projected to be under manage-
nications, retailing and fashion, pharma- ment in 20 locations (end of 2007: 13).14
.......
New facility in Malaysia
Kuehne + Nagel has expanded its capac- vides us with an ideal platform to
ities in the Asia-Pacific region with the expand our contract logistics activities,
commissioning of a new logistics centre an integral part of our business,” com-
in Malaysia. Dr. Urs Stemmler, Swiss Am- mented Andy Weber, Regional Manager
bassador to Malaysia, and Klaus Herms, of Kuehne + Nagel Asia-Pacific during
Chief Executive Officer of Kuehne + the opening ceremony.
Nagel International AG, officially inaugu-
Dr. Urs Stemmler, Swiss Ambassador to rated the facility in the presence of numer- In his address, Klaus Herms looked back
Malaysia, and Klaus Herms, CEO of ous customers and business partners. to the beginnings of the Malaysian com-
Kuehne + Nagel International AG, visit pany, upon which he set his personal
the state-of-the-art warehouse. Located at Bukit Jelutong (Shah Alam), stamp. Malaysia’s favourable position in
roughly 25 kilometres from the capital the centre of the Asia-Pacific region was
Kuala Lumpur, the new facility provides a decisive factor for Kuehne + Nagel’s
22,000 sqm of handling and warehouse decision to establish itself in the country
space and is equipped with the latest 35 years ago. The national company
technology including RFID capability. now employs over 200 people at five
The terminal, which has excellent trans- locations in Kuala Lumpur, Penang and
..................................... port connections, includes a chemical Johor Bahru, and offers comprehensive
storage area for around 4,000 pallet posi- international forwarding, warehousing
A S I A - PA C I F I C tions and a 2,000 sqm temperature-con- and distribution solutions and customer-
trolled area. 40 hydraulic loading docks specific value-added services to domes-
provide smooth access to the facility. tic and international customers.
“The investment underlines the dynamic
growth of the national company. It pro-
KUEHNE + NAGEL . . . . . . . WORLD NO. 1/2008FOCUS 15
.......
Direct aid
Alongside the Kuehne Foundation, which Nagel also supports schools by contribu- in China collected over 100,000 US dollars
supports training and further education tions in kind such as clothing, school fur- for the victims within a week and the
in logistics as well as sponsoring cultural niture, PCs, books or paper. company contributed the same amount.
and charitable activities, the Kuehne + The money was donated to local Red
Nagel national organisations also sup- Spontaneous assistance is also needed. Cross organisations.
port selected aid projects in their coun- Following this year’s earthquake disaster
tries. The companies in the Asia-Pacific in China, the Kuehne + Nagel employees
region, for instance, do much to help
people in need. Since 1997 the Chinese
Kuehne + Nagel organisation has regu-
larly given support to “Project Hope”, a
public welfare project which is initiated
and organised by the China Youth Devel-
opment Foundation. In poor rural areas it
helps to motivate premature school
leavers to resume their education and to
induce at-risk boys and girls to continue
school attendance.
Kuehne + Nagel China first sponsored
this scheme, which attracts a great deal
of attention both in China and abroad, in
2000 when it supported the construction
of the Wangsuozhai Hope School, a pri-
mary school in the province of Yunnan.
The link with “Project Hope” is a long- The students of the Wangsuozhai primary school in the province of Yunnan have been able
term commitment under which Kuehne + to count on the support of Kuehne + Nagel for many years.
..................................................................................................................
Korea: contract signed with
Doosan Infracore
Kuehne + Nagel, which began its operations in Korea 35 years ago,
was the first global logistics provider to operate in Seoul, initially
together with an agent. It now has its own national company and
employs approximately 120 people at its offices in Seoul, Pusan and
Incheon. Kuehne + Nagel is in the top league in both the sea- and
airfreight businesses in Korea, and operates warehousing and distri-
bution facilities with an area of 30,000 sqm. Doosan Infracore, a
leading Korean machine tool manufacturer with worldwide operations,
has recently chosen Kuehne + Nagel as its partner to optimise inbound
transport flows. The services provided by Kuehne + Nagel include the
handling of full container load (FCL) and less than container load
(LCL) seafreight shipments, buyer’s consolidation, and the transport
of goods by air from Europe.
The headquarters of the Kuehne + Nagel national company in Korea.16
.......
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Top logistics know-how One of the 48 escalator units transported by Kuehne + Nagel for the
construction of the new bus stations in Bangkok.
for the Maldives
White sandy beaches, an azure-blue sea, shady
palms and brilliantly coloured plants – the
Moving up in Thailand with
Maldives are a tourist’s paradise. The sector
provides work for 22,000 people and contributes
Kone Thai Lift
30 per cent of the gross domestic product of the Kuehne + Nagel Thailand was founded in 1966 and officially
republic. Of its 1,190 islands 220 are used by registered as a company in 1985. It now has 250 employees in five
the indigenous population and 87 for tourism; locations in Bangkok, Laem Chabang and Phuket. As regards its
most of the more than 100 hotels are resort market position, it is the number one in seafreight and one of
hotels and include some of the world’s best, Thailand’s leading airfreight and contract logistics providers.
often located on private islands.
One of the companies that count on the know-how and resources
Kuehne + Nagel is the first international logis- of Kuehne + Nagel is Kone Thai Lift, one of the world’s leading
tics provider to operate a wholly-owned sub- manufacturers of lifts and escalators. A recently signed agreement
sidiary in the Republic of Maldives. The compa- between the two companies encompasses services along the supply
ny has opened two offices, in the capital Malé chain which range from international seafreight and customs
and on Gan in the south. In addition to tourism, clearance to warehousing, delivery to construction sites and spare
the Maldives have a second pillar to their econo- parts management.
my: They are one of the key exporters of fresh
and aquarium fish. It is these two branches of Kuehne + Nagel is working on an exclusive basis on the BRT (Bus
the economy that determine the needs of the Rapid Transit) project in Bangkok; Kone Thai Lift has been awarded
customers. With its offering ranging from hotel a contract from the city authorities to supply 48 complete escalator
and beverage logistics to consumer goods units for twelve new bus stations all over Bangkok. BRT Bus Rapid
imports, international sea- and airfreight services, Transit is the new municipal transit scheme which will comprise five
warehousing and project management, Kuehne + routes. The first is due to go into operation from mid-August. The
Nagel is considered a valued partner to its routes will have a total length of 110 kilometres and are expected
customers. to handle 50,000 passengers per day in the first year.
The large parts are delivered to the construction sites at night, for
two reasons: firstly in order to avoid obstructions to traffic and
................................................. secondly because of safety considerations. At the beginning of June
deliveries to seven of twelve stations had been successfully and
A S I A - PA C I F I C smoothly completed.
Besides the BRT project, Kuehne + Nagel is also collaborating with
Kone Thai Lift on other projects all over the country. One such
project is the delivery of lifts to the “Met Condominium”, Thailand’s
tallest residential building with a height of 70 floors.
KUEHNE + NAGEL . . . . . . . WORLD NO. 1/2008FOCUS 17
.......
Stronger Far East involvement
Development and expansion also set the tone in Australia and New Zealand.
In addition to their strong bilateral rela-
tions, since the 1990s the economies of
Australia and New Zealand have also
Australia for export all over the world. In January
of this year a new, modern warehouse
for this industry segment was opened
become increasingly involved in other Founded in 1971 Kuehne + Nagel Aus- at this location.
parts of the Asia-Pacific region; Oceania tralia currently employs more than 350
has not been exempt from the trend to people in nine locations (Perth, Ade- The economy of the fifth continent bene-
relocate production to lower-cost coun- laide, Melbourne, Hobart, Sydney, New- fits substantially from Australia’s wealth
tries such as China or India, which means castle and Brisbane) in this country of natural resources. The Perth branch
that in Australia and New Zealand – in with a population of 20.4 million and focuses on the oil and gas industry and
contrast to most export-oriented coun- operates a warehouse area of 50,000 has steadily expanded its service spec-
tries in the Far East – import business has sqm. Besides its extensive international trum over the last few years. Since 2004
a very important position. This is also forwarding and logistics portfolio, the Kuehne + Nagel has provided forwarding
reflected in the activities of the two national company also offers specialised services for Woodside Energy Limited,
Kuehne + Nagel national companies. solutions for niche markets. one of Australia’s largest publicly-trad-
Well over half the sea- and airfreight car- ed energy exploration and production
go is to and from the Asia-Pacific region, An example of this is the Adelaide facil- companies as well as a major seller of
and the demand for comprehensive con- ity, which has developed into the drinks liquefied natural gas, crude oil, conden-
tract logistics services is growing rapidly logistics hub for Australia, and handles sate and liquid petroleum gas. Its com-
in both countries. roughly 5,000 TEU of wine and spirits mitted efforts for this customer have
The Asia-Pacific region accounts for well over half the freight volume handled by Kuehne + Nagel Australia and New Zealand.18 FOCUS
..............................
paid off, for in 2007 the contract with
.....................................................................................................................................
Kuehne + Nagel was renewed for a
further five years.
Opera at the warehouse
In April of this year, the Kuehne + Nagel warehouses in Sydney and Melbourne
Growing demand in the commodities were transformed into a stage: in the supporting programme for a networking
sector is also making itself felt at the event, the Co-Opera Company put on a production of Giuseppe Verdi’s La Tra-
Brisbane branch, which is benefiting viata which met with an enthusiastic response from the invited Kuehne + Nagel
primarily from the mining industry. customers and members of the Swiss-Australian and German-Australian Cham-
Australian iron ore, copper, nickel, alu- bers of Commerce.
minium and coal are exported main-
ly to the Southeast Asia region but The opera company was founded in 1990 with the aim of bringing classical
also to China and India. culture to the Australian outback. The professional performers travel all over
Australia with their repertoire and stage highlights from the world of opera in
In the populous southeastern states schools and gymnasiums in the remotest corners of the country. Thanks to the
with the economic centres of Mel- support of the Kuehne Foundation, the opera company can celebrate a premiere
bourne and Sydney, highly specialised in 2009; on 13 May it will travel to Switzerland for the first time and perform
warehousing and distribution services at the Annual General Meeting of Kuehne + Nagel International AG in the new
are often a crucial competitive factor. multipurpose hall of the municipality of Schindellegi.
More than 80 per cent of the 50,000
sqm of warehouse space which
Kuehne + Nagel operates in the coun-
try is located in these consumer mar-
kets. What customers require is a serv-
Worldwide coffee logistics
ice provider that can offer comprehen- In 2007 Kuehne + Nagel was awarded a global contract by the Australian company
sive, integrated solutions from a sin- Gloria Jean’s Coffees International for the provision of integrated logistics solutions
gle source and has a network covering covering international transport, customs brokerage services and the implemen-
the whole of the Asia-Pacific region. tation and operation of regional logistics hubs. Gloria Jean’s operates a franchise
In Melbourne and Sydney there is also network of more than 875 stores in 32 countries.
a demand for niche expertise: here
Kuehne + Nagel recently won a large The regional distribution centres in Sydney, Rotterdam and Dubai have already
contract in the field of aviation logis- begun operation; the hubs in Singapore and Mumbai will follow shortly. The con-
tics. cept ensures optimum lead times in the supply of products to Master Franchise
Partners across the world. “Thanks to Kuehne + Nagel we for the first time have a
fully integrated, worldwide supplier-to-store logistics concept which ensures, for
instance, that our customers in Ukraine are supplied on a time- and cost-optimised
basis with coffee from our factory in Sydney and with coffee cups and lids from
our suppliers in China,” said Chris Muir, Global Supply Chain Manager of Gloria
Jean’s Coffees International.
AUSTRALIA
NEW ZEAL AND
KUEHNE + NAGEL . . . . . . . WORLD NO. 1/2008FOCUS 19
.......
New Zealand ber industry and is reporting a large
growth in exports to Asia and the USA.
New Zealand is highly dependent on for-
eign trade. It is therefore regarded as a
milestone that this year – after three
The main economic activities in New Kuehne + Nagel today belongs to the years of tough negotiations – a free trade
Zealand are somewhat unusual for a devel- country’s top three logistics providers, agreement has been signed with China.
oped country: agriculture and forestry, and in response to the strong growth of For Kuehne + Nagel and its customers
food and tourism. The country has a interest in export opportunities for per- this opens up further attractive possibili-
population of 4.1 million. ishable goods, in 2007 it substantially ties for development between these two
increased its perishable and reefer countries and, of course, in the rest of the
Kuehne + Nagel commenced operations freight capacity. The necessary licences Asia-Pacific market.
in New Zealand in 1971 and in 1999 for the handling of fish and meat prod-
established its national company. Since ucts have also been gained.
then, it has increased its workforce from
ten to 136. In particular, the company’s Kuehne + Nagel has substantially increased its capacity for temperature-sensitive cargo in
rapid growth over the past three years New Zealand.
has necessitated substantial investments
in infrastructure and buildings in order to
continue expanding its market shares
and develop customer solutions. Only a
kilometre from the Auckland headquar-
ters, a new logistics centre with an area
of 10,000 sqm was recently commis-
sioned. As a result, Kuehne + Nagel is in
an even better position to offer compre-
hensive and integrated logistics solu-
tions along the supply chain.
Demand is also growing in other loca-
tions in New Zealand. Only ten years
since it was opened, the Wellington
branch has become one of the leading
providers in the region. In Christchurch,
the gateway to the South Island, the num-
ber of staff and range of services have
also been expanded, while the branch in
Dunedin further to the south concen-
trates primarily on the needs of the tim-
“The Warehouse Non Trade Supplier of the Year”
In 2006 Kuehne + Nagel won a tender by the retailer The Warehouse Group. During the following 18 months the
management of the large container volume of New Zealand’s biggest importer was entrusted to a team of Kuehne +
Nagel specialists. The service included assuring the highest possible degree of end-to-end supply chain transparency
using KN Login – from supplier reporting to the monitoring of all goods movements both at the port and on the way
to the destination. The results were convincing: Less than two years after the start of the project, in recognition of
the achieved process improvements and increases in efficiency Kuehne + Nagel was awarded the title of “The Ware-
house Non Trade Supplier of the Year”.
KUEHNE + NAGEL . . . . . . . WORLD NO. 1/200820 MARKETS & PRODUCTS
..............................
300 tonnes of extreme cargo
fill three Antonov bellies
The original assignment was to transport over 200 tonnes of bulky oil drilling equipment
by airfreight to the oilfields of western Siberia. However, when this figure suddenly jumped
to nearly 300 tonnes, Kuehne + Nagel Hamburg, which handled the project on a joint basis
together with Albacorshipping Toronto, speedily organised the transport of the additional
freight. They could depend on the specialists of Volga-Dnepr for the delicate job of loading
the cargo.
The order, which was already urgently awaited in Siberia, been brought by sea to Hamburg from Canada and the USA,
included containers with special interior fittings, cement and transported by rail and truck to the former military air-
pumps, cleaning pumps and cement preparation machines for field located a short distance away at Parchim in Mecklen-
the lining of boreholes. The highly specialised equipment had burg-West Pomerania.
The loading of the highly specialised equipment calls for a sure hand: this time there are only centimetres to spare.MARKETS & PRODUCTS 21
.......
There, it had to be loaded into the blue-and-white Antonovs, a
tricky task even for the specialists of Volga-Dnepr as there
was little room to spare inside the giant bellies of the aircrafts.
A Russian award
The two originally scheduled freighters carried respective Originally founded by the Russian State Duma and the
loads of 105 and 100 tonnes, close to the maximum capacity Ministry of Transport, this year’s annual Golden Car
of 120 tonnes with the heaviest freight item weighing 42 Awards held in late June honoured the Russian Kuehne +
tonnes. In the hold, with a length of nearly 37 metres, the car- Nagel organisation with the title “Leader in Transport
go filled almost the full height of 4.40 metres with a clearance and Forwarding Industry in Russia”. For Managing
of only four centimetres. The additional freighter, which car- Director Perry Neumann the prestigious award is a
ried a further 90 tonnes to Nishnevartovsk in western Siberia, confirmation of the company’s commitment and success
was needed at short notice due to delays in the approval pro- in the up-and-coming Russian logistics market, as well
cedure for the originally planned transport by rail. This third as “a compelling obligation to consistently continue
aircraft – the Antonov 124-100 “Ruslan” – was organised with- with our expansion strategy in line with growing cus-
in ten days. And here too, the freight flyers from Ulyanovsk tomer demand in this huge country.” Kuehne + Nagel
proved to be strong partners. has been active in Russia for 16 years and today oper-
ates offices and warehouses in Moscow, St. Petersburg,
Yekaterinburg, Kaliningrad, Rostov-on-Don and on
Sakhalin.
..................................................................................................................
On the glass road
Multimodal shipments to Russia – Kuehne +
Nagel ensures punctual completion of a
factory for glass manufacturer Guardian.
Kuehne + Nagel is handling another major project in Russia. As far as the eye can see: oversized special transport by rail.
The company is currently responsible for all shipments needed
for the establishment of a new glass factory in Ryazan. The
customer is Guardian, one of the world’s biggest producers of 415 standard and high-cube containers were collected at their
float glass and fabricated glass products headquartered in points of departure in the USA, Taiwan, China and Indonesia,
Michigan. transported to ports, loaded onto ships and carried by sea to
St. Petersburg from where they were transported overland to
Everything for the new glass production plant has to be the customer. 32 oversized units – some of them with widths
brought to Ryazan (roughly 200 kilometres to the southeast of of up to 6 metres – were moved to ports on special trailers
Moscow). Equipment and machinery amounting to a total of before being likewise carried across the sea. The contents of
35,000 tonnes of cargo has to be collected from all over the 28 railway wagons with sometimes sensitive equipment and
world: the USA, China, Taiwan, Indonesia and Europe (UK, Lux- machine parts from Europe had to be transferred onto trucks
embourg, Italy, France, Poland, Germany, Belgium, Finland, for the final kilometres to Ryazan. In addition, 49 oversized
Sweden, Netherlands and Austria). A period of 14 months is and 680 standard trucks went directly to the destination, and
planned for the project, for which the exact time schedule has a few special items travelled by airfreight. Guardian had no
been drawn up jointly by Kuehne + Nagel and Guardian. The need to worry about any of the individual steps in the ship-
Ryazan assignment is a multimodal project which involves dif- ping process or the formalities involved in special transport,
ferent forms of transport and the carriage of oversized items customs clearance, measurement and final delivery. Kuehne +
by ship, rail and road. Nagel successfully took care of everything.
KUEHNE + NAGEL . . . . . . . WORLD NO. 1/200822 MARKETS & PRODUCTS
..............................
Continued growth
The Nacora Group has sustainably developed against the downward trend in the insurance
market and is continuing to expand its network.
Dr. Weber, you have been at the have also stepped up our efforts to sell and 20 per cent of the customers are
head of the Nacora Group for three transport insurance to other companies. also of interest for our Group and could
years. What picture did the Nacora be served by it.
Group present when you took over How does this segment look in terms
its management? of growth potential? So we are talking about 45,000 to
In the summer of 2005 I got to know the The potentials for growth are still excel- 60,000 potential customers. How
Nacora Group as a network of nationally lent. Here globalisation is undoubtedly many customers does Nacora have at
operating brokerage companies distin- a strong motivating force. But transport present?
guished by high profitability, a highly insurance is a small niche and will re- We have between 75,000 and 85,000
committed workforce and a good market main so in future. For that reason we customers all over the world. The majori-
position in the field of marine cargo insur- need new growth areas. ty are companies who use the services of
ance. In a number of countries Nacora Kuehne + Nagel and other forwarders
was also a respected player in other areas Which? for the transport of their goods and
of the insurance industry. By strengthening our marketing efforts, insure them through Nacora. We also
we want to gain commercial clients in have many individual customers as a
What were your main objectives? the local Nacora markets. That hardly result of the staff insurance business,
To speed up the organic growth of the sounds spectacular, but takes on a com- and a total of 4,000 to 5,000 commer-
Nacora Group and press ahead with the pletely different dimension if one con- cial clients who insure with us.
expansion of the network in order to siders that Kuehne + Nagel has roughly
make a substantial contribution to the 300,000 customers all over the world. How do you expect the Nacora Group
business results of our parent company. to look in three to five years?
And Nacora is now focusing on these? We have very ambitious aims for the
And how has Nacora developed Only up to a point. Many of Kuehne + years ahead which cannot be achieved
under your leadership? Nagel’s customers are simply too big solely by organic growth. We are there-
In the past few years, on average we for the Nacora Group. However, our fore looking for suitable acquisition tar-
have achieved double-digit growth. This analyses have shown that between 15 gets in the different markets.
applies both to gross profit and to net
earnings. Over these years the insurance
market has been on a downward curve,
so the Nacora Group has clearly moved
against the trend. In 2005, our network
spanned 28 locations in 21 countries. At
the end of 2008 the plan is to have 48 Nacora, a wholly-owned Kuehne + Nagel subsidiary, is an independent insurance
offices in 32 countries. We have vigor- brokerage group with worldwide operations. Its activities concentrate on the fields of
ously expanded the transport insurance commercial insurance and cargo insurance. Its focussed strategy provides a substantial
business. For the Kuehne + Nagel Group, competitive advantage and is enabling the Nacora Group to steadily expand its
for instance – a very important market- network, which now comprises 29 national companies with 43 offices on all continents.
ing channel for us – we have developed Tailor-made insurance solutions are offered to customers from trade, industry and the
two insurance products which can be public sector.
offered exclusively to its customers. We
KUEHNE + NAGEL . . . . . . . WORLD NO. 1/2008MARKETS & PRODUCTS 23
.......
Just as important as growth, however,
Chile’s agriculture minister stresses
.........................................................................................
is to expand and further develop
Nacora Group’s range of services. In
many countries its activities are still
importance of Kuehne + Nagel
too focused on marine insurance. We Marigen Hornkohl, who was recently
want to change that by putting our- appointed minister of agriculture in
selves in a position to offer the com- Chile, visited the Kuehne + Nagel booth
plete range of insurance services as on the first day of Fruit Logistica in
brokers on a worldwide level. Berlin. She took the opportunity to stress
the importance of the company for the
The logical next development step is export of agricultural products from
to offer customers more internation- Chile. She was accompanied by Reinhard
al insurance programmes. What very R. Kuetter (2nd from right), Chile’s hon-
few people know is that one of the orary consul in Bremen and general rep-
world’s biggest brokerage networks resentative of Kühne + Nagel (AG & Co.)
belongs to the Nacora Group. KG. At the stand the two visitors spoke ishables team, which was represented
with Frank Ganse (1st from right), Global with its own sea- and airfreight special-
Director Reefer Logistics, and Pablo ists from the relevant key markets –
Novoa (1st from left), Reefer Develop- besides Chile, also Argentina, Brazil,
ment Manager Chile. Egypt and Peru.
As the leading fair for the international In this relatively new business segment –
fruit trade, Fruit Logistica is naturally an the company did not make its strategic
important platform for Kuehne + Nagel. entry into the reefer market until 1999 –
Visitors showed a lively interest in the Kuehne + Nagel is able to report signifi-
services of the logistics provider on all cant growth in volume year after year. Its
three days of the fair. Expertise in every aim is to establish itself as the leading
respect was shown by the Reefer & Per- logistics provider in this market.
..................................................................................................................
Focus on strategy
Meeting of specialists in Los Angeles: The 3rd Global LCL Meeting focused its attention on the strategic development of one
of the most important seafreight products within the Kuehne + Nagel organisation: the Less than Container Load service. The
company’s own LCL network will be increased, and with the establishment of new LCL gateways in Dubai, Singapore, New York,
Linz and Gothenburg, along with other gateways currently in the planning stage, the offering will be extended to more than
280 direct LCL services and over 5,000 routes via gateways.24
.......
Clearing the way for solar energy
The route covers a distance of more than 50,000 kilometres in 50 countries and across
five continents. Kuehne + Nagel Switzerland and Asia are sponsoring the solar taxi project.
Its mission – “Stop global warming” – could hardly be more appropriate.
KUEHNE + NAGEL . . . . . . . WORLD NO. 1/2008MARKETS & PRODUCTS 25
.......
Prominent visitors: Swiss Federal Councillor Micheline Calmy-Rey and Australian Minister for
the Environment Peter Garret.
the solar taxi from Christchurch to Syd- zenegger, former actor and now Governor
ney (January), as well as transport by sea of California, is on the agenda in July.
from Perth to Singapore (March). With
the aid of Kuehne + Nagel, this has been The initiator and director of the project
followed by movements from Tianjin to is Louis Palmer, whose achievements
Incheon (May) and from Pusan to Van- include setting a world record for a flight
couver (June). A journey from Montreal with the smallest aircraft across South
to Casablanca is planned in July. America in 1998 and who was invited to
the World Climate Conference in Bali in
What determines the exact route of the recognition of this action for the protec-
solar taxi? Invitations from inventors, tion of the world climate. His message is
organisations, individuals, and scientists simple: “The solar taxi should rekindle
who are committed to the fight against hope and a zest for life, set an example
global warming. to counteract resignation and stimulate
reflection. And show that every single
The vehicle is expected back in Lucerne one of us can take a step towards pre-
in August, by which time it will have serving our planet.”
attracted a lot of attention all over the
world. The media presence along the
route has been and continues to be high:
international news agencies and nation- The sea leg of the journey was made in
al media follow its progress, and reports containers.
and images can be seen on the internet
every day. Many prominent people sup-
port the mission and have been pho-
tographed in and with the unusual vehi-
This project calls upon the assistance of cle. They include Swiss Federal Councillor
Kuehne + Nagel whenever transport by Micheline Calmy-Rey who was President
sea or air is required. Since the start in of the Confederation in 2007, New
Lucerne, Switzerland, in July 2007, this York’s Mayor Michael Bloomberg, Peter
has included transport by seafreight Garret, former Midnight Oil singer and
from Jebel Ali to Mumbai (October), by Australia’s new environment minister,
airfreight from Calcutta to the world cli- and the Nobel Peace Prize laureate and
mate conference on Bali (November), the Chairman of the Intergovernmental
shipment of the accompanying bus from Panel on Climate Change Dr. Rajendra K.
Calcutta to Sydney (November) and of Pachauri. A meeting with Arnold Schwar-
KUEHNE + NAGEL . . . . . . . WORLD NO. 1/200826
.......
Beiersdorf relies on Kuehne + Nagel
The Beiersdorf cosmetics group has chosen Kuehne + Nagel agreement was the preservation of the
as its partner in Germany and Austria. Since June 2008 the 148 jobs at the centre as well as the
long-term preservation of Hamburg as a
company has been entrusted with the management of the logistics location.
Nivea manufacturer’s main warehouse in Hamburg. It is also
handling exports to Beiersdorf’s subsidiaries abroad. Efficiency and flexibility, as well as the
long-term prospects for the employees,
were the predominant factors in the deci-
sion of Beiersdorf CEE Holding GmbH to
“This new co-operation will bring more select Kuehne + Nagel to operate the
flexibility and is a key step towards meet- company’s logistics centre for Central
..................................... ing the constantly rising demands of the and Eastern Europe (CEE) in Vienna.
competitive European environment. We
“All parties will benefit have significantly improved our interna- In 2007 Beiersdorf CEE Holding grew to
from the partnership.” tional competitiveness by restructuring become the second largest region within
..................................... our supply and production chain in the the Beiersdorf group, and is pursuing
last two years,” said Markus Pinger, ambitious growth targets.
Beiers dorf AG’s management board
member responsible for logistics. “Our Dirk Reich, member of the Kuehne +
system cuts costs, is flexible and environ- Nagel International AG Management
mentally friendly and boosts our innova- Board with responsibility for contract
tive strength. With it, new products can logistics, is delighted at the co-operation
be launched worldwide extremely quick- with Beiersdorf and is certain that all
ly.” One of the key criteria for signing the parties will benefit from the partnership.
KUEHNE + NAGEL . . . . . . . WORLD NO. 1/2008You can also read
