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www.logisticsbusiness.com SEPTEMBER 2014
FUTURE OF LOGISTICSCOLD STORE AUTOMATIONREGIONAL SUPPLY CHAINS WAREHOUSE TRUCK TECHNOLOGY
PORT DEVELOPMENTSSTORAGE & SYSTEMS
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FOREWORD
LOGISTICS BUSINESS MAGAZINE
3Logistics Business Magazine |September 2014
By Professor Michael Bourlakis -
Chair in Logistics and Supply Chain
Management at Cranfield School
of Management and Director of the
Supply Chain Research Centre.
This article will analyse the key
contemporary trends and challenges
faced by logistics and transportation
managers. Its aim is not to provide
an exhaustive view but to illustrate a
range of topical issues as perceived by
the author. Specifically:
1. Current dominance of retailersin the supply chain
Traditionally, manufacturers have
been the most powerful members of
the supply chain. However, from the
1990s onwards, retailers have startedto dominate the supply chain due to
the increasing popularity of their own
brands and their close and influential
access to consumers. The outcome
of this trend has been for retailers to
become channel captains in many
supply chains including the grocery
and the clothing chains. In the past
few years, we have witnessed the
proliferation of social media and
the advent of the new consumer
who expects to buy products via
various methods especially online viacomputer, mobile, tablet as well as
in-store and to get products delivered
at various locations (e.g. retail store,
home, post office, rail station etc).
Retailers have reacted by becoming
omni-channel retailers aiming to
provide a unique, integrated, cross-
channel experience to consumers.
At Cranfield School of Management,
we have relevant expertise in retail
and omni-channels. For example, I
contributed to a report recently for
the European Commission on RetailInnovation focusing on supply chain
elements.
2. Sustainability
Supply chain members have
implemented sustainability in various
aspects of their operations aiming to
produce relevant social, economic and
environmental benefits. Sustainabilitycan be considered from the pure
operational / functional perspective
(warehousing, transportation etc) and
/ or the natural resource perspective
(e.g. energy, water, minerals etc).
Sustainability can be also considered
from an interdisciplinary perspective
aiming to examine its three pillars
in a holistic and integrated manner.
Sustainability is the focus of two
projects funded by the European
Union where researchers from
the Centre of Logistics and SupplyChain Management at Cranfield
School of Management have a major
involvement: a) the SCALE project
aiming to develop new collaborative
frameworks to enable the improvement
of the efficiency and sustainability of
food logistics operations
(http://www.projectscale.eu/partners),
and b) the CO3project where the focus
is on achieving competitiveness and
sustainability by promoting horizontal
collaboration between European
shippers (http://www.co3-project.eu/).
3. Transportation
Transportation has been always
considered a key function in supply
chains for, inter alia, its critical role
in connecting various supply chain
members and supporting other
key logistics operations such as
warehousing. Transportation has
received major attention the past
years from industry, society and other
stakeholders due to its critical role in
sustainability issues and its contributionto a better quality of life and well-being
for consumers and citizens (e.g. better
accessibility to products and services).
The UK government has recognised
the role of transport by funding a
new initiative for integrated transport
systems, the Transport Systems
Catapult based in Milton Keynes. Total
funding is expected to reach 150
million for the next five years aiming
to develop transport-related solutions.
As part of this initiative, Cranfield
University has been recently awarded
a grant to develop a new Transport
Systems Catapult Centre where
colleagues from the Centre of Logistics
and Supply Chain Management will
provide major input.
m.bourlakis@cranfield.ac.uk
Contemporary trendsin logistics
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4/844 Logistics Business Magazine | September 2014
IN THIS ISSUE OF
Logistics Business Magazine
CONTENTS
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Cambridgeshire, PE XY. UK
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Registered Trade Mark Logistics Business Publishing Ltd
No part of this publication may be reproduced in any form without prior written permission
from the publishers.
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are advised to check any manufacturers or suppliers claim for products and services.The publishers do not endorse opinions expressed in any article by an outside contributor.
ISSN: -
In association with:
Logistics Business IT - www.logisticsbusinessit.com
Publisher:David Priestman + () / david@logisticsbusiness.com
Publishing Assistant:Alex Cottard + () / alex@logisticsbusiness.com
Advertising Director:Jim Gosney + () / jim@logisticsbusiness.com
Production & Accounts Manager:Paul Dixon + () / paul@logisticsbusiness.com
Circulation & Customer Service:Alan Bosworth + () / alan@logisticsbusiness.com
Contributing Editor: Chris Price-White chris@logisticsbusiness.com
Contributing Editor: Sam Tulip sam@logisticsbusiness.com
Marketing Manager:Mel Brill + () / mel@logisticsbusinessit.com
IT Manager:Pav Guberov - web@logisticsbusinessit.com
Editorial Contributors:Mike King & Nigel Parry
Distribution, Transport& Supply Chain
03 Foreword Contemporary trends in logistics
by Professor Michael Bourlakis ofCranfield University.
06Through a glass darkly E-commerce impact
by Sam Tulip.
08 Indonesia Challenge & opportunity
by Mike King.
12 The dotted line New Zealands transport
infrastructure by Nigel Parry.
14 Blue cooling Container shipping for fresh
produce by Gino Baldissari.
16 European gateway Alex Cottard reports on the Port of
Dunkerque.
18 Where good delivery starts Humber logistics hub, by Sam Tulip.
20 Export help Chris Price-White interviews
FedEx Express VP OperationsTrevor Hoyle.
22 Illuminating the high-bay
Logistics Businessreports onwarehouse lighting.
24 A north-western approach Port of Liverpool developments by
Chris Price-White.
28 The full cycle Interview with the CEO of a
major Russian 3PL.
30 The future of freightby Alex Cottard
32 Fast doors & yard ramps Loading bay technology.
34 Effective logistics
management Facilities management advice.
Material Handling andWarehousing
36 Conveying power by Tracy Powell
38 Platform to convey David Priestman interviews a
leading conveyor manufacturer.
40 Highly competent Storage systems OEM interviewed
by David Priestman.
42 Aerosols in an automaticwarehouse
Exclusive case study.
44Deep-freeze logisticsin perfection
Exclusive case study.
48 Highly dynamic solution Logistics Businessreports on
warehouse systems integration.
52 Future sorting An interview with a major
conveying & sorting OEM.
54 Any which way Alex Cottard visits a sideloaders HQ.
58 The X factor for futurewarehousing
Forklifts news.
64 The last revolution inlogistics
Automated guided vehicle
technology.
66 Tyre specialities David Priestman interviews a
major industrial tyre supplier.
68 ComplementarycomponentsForklift tyres, attachments,chargers & cabs profiled.
72 Part of the deal The business of forklift parts
distribution.
Packaging, Pallets& Green Logistics
74 Rolling forward the future RFID-enabled packaging solutions
by Chris Price-White.
76 Pallets & Cages Small pallets & mobile
workstations.
78 Optimised material flowmanagement
Recycling & containers profiled.
80 Picture an exhibition Diary dates for the main shows.
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Best in
Class WinnerJungheinrich EFG S40s: The most effi cient electric fork lift truck with the
power of a diesel engine. With upto 28 per cent lower consumption than its
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More highlights: www.jungheinrich.com
8/10/2019 Logistics Business Magazine September 2014
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DHL-Deutsche Post has been
building a reputation for futurology,
and at a presentation in Berlin in
May, Board Member for ecommerce
Juergen Gerdes presented their
Global e-Tailing 2025 study, which
offered four plausible but very
different scenarios for the near future,
predicated on varying world economic
and political environments. (The study
focuses very largely on the urban
environment, but since a continuing
global movement to the cities is
almost the only certainty for the future,
this is reasonable). Some look like a
simple extrapolation of current trends;
others have a touch of science fiction
but as Gerdes observed, ten years
ago, what was a Smartphone?
The first scenario envisages continuing
moderate global growth, cominglargely from Asia which is developing
a growing and consumer-oriented
middle class. Technology has to some
extent controlled rises in input prices,
but while the GDP gap between
developed and developing countries
Through a glass darkly
is closing, social extremes within cities
or countries are growing. In retailing,
growing numbers of the better off
demand convenience, not least
because they are defined by their work
and the fear of losing it, while the poor
are, as ever, focused on price.
In this environment, Gerdes suggested,multi-channel retailing is the norm,
and the boundaries between on-
line and off-line have disappeared,
but city centre stores are essentially
showrooms or experience stores,
delivering from out-of-town
warehouses. Smartphones, tablets,
social networks and the Internet
of Things provide manufacturers
and retailers with vast quantities
of customer data with which they
can predict preferences and target
promotions, while purchases can bemade from a Smartphone addressing
a digital advert, or grocery staples re-
ordered on a subscription basis. Either
way, most customers expect home
delivery - possibly before they have
arrived home themselves!
E-Tailing, retailing to consumers through electronic commerce techniques, has grown from
almost nothing at the turn of the Millennium to become perhaps the most significant
opportunity, or threat, for retailers around the world. Everyone knows that its importance can
only increase, but to what extent and how quickly, and what this will mean on the ground for the
logistics and distribution industries, is more problematic. By Sam Tulip, Contributing Editor
For the logistics industry in this
scenario, DHL suggests that demand
at all levels, but especially the last
mile, will increase substantially.
Multi-channel requires greater
communication between retail, logistics
and consumers, and the latter requires
complete visibility of their package -
even on a container ship in the Pacific.Parcel boxes and pick-up stations (also
handling returns) are commonplace;
and while large international logistics
firms prosper there is space in
niche markets (such as furniture or
technology delivery and assembly) and,
in cities, express transport (90 minute
guarantee) of on-line orders.
This much looks predictable from
current trends: Paul Graham, CEO Asia
Pacific for DHL Supply Chain, says in
the report: The only restrictions on
online retailing will be imposed by the
logistics infrastructure, be that urban
congestion or, in for example Vietnam,
the absence of a post-code system.
Board Member for ecommerce
Juergen Gerdes
6 Logistics Business Magazine | September 2014
E-TAILING IMPACT
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DHLs second scene is one of
unexpected world growth with
trade liberalization and favourable
commodity prices creating middle
classes sufficiently stable to identify
themselves through leisure rather than
work. The retail market segments intocommunities of common interests
from craft beers to extreme sports,
demanding the authentic - these are
rapidly created, and dissolved, but
link like minds worldwide. They use
3D printing technologies, at home
and through micropreneurs; portable
technologies, wearables like smart
glasses, and home sensor networks,
are ubiquitous. Curiously, this extends
a life-line to bricks and mortar stores
which become venues for the different
communities.
In logistics terms national and
international transport increases
significantly, but cross-border trade
may be largely in small batches for
special interests. Logistics companies
have to supply the speed to catch
the moment, and also transparent
authenticity. This would give major
players an advantage, but in practice
most logistics companies are in partner
networks operating joint DCs - not least
because of heavy traffic regulation
in cities. Another solution may bedelivery by drone - not just a piece of
Amazon hype: DHL itself has a concept
demonstrator.
Of course technology may, probably
will, make a step-change by 2025.
In DHLs third case the digital
world and the living environment is
extraordinarily dynamic. Planning and
control of material lifecycles preserve
generated value but demand a
phenomenal level of IT integration.
Enter the avatar. The consumers life isso connected that their digital avatar
knows more about them than they do -
monitoring expenditure, recommending
products, sourcing alternatives without
being asked (you no longer search
through websites yourself), even
ordering goods it thinks you would like
on approval. Big data is rampant (as,
worryingly, is cybercrime). Retailers
develop predictive purchasing (Amazon
already has patents), anticipating
demand to stock decentralized DCs
and even sending goods direct tothe customer before they have been
ordered (but the prediction is good
enough for a sub 20% returns rate).
For logistics, delivery is no longer same
day, it is same hour. If two retailers
anticipate a need, the first one to
deliver makes the sale: large retailers
launch their own, partially drone-
based, delivery systems. Security in the
system has a very high priority, (avatars
are better at detecting fake goods
and dubious transactions than we are)
while the customer has the unlimited
ability to redirect a delivery while in
transit. Delivery is to smart Packstations
and parcel boxes, or to special secure
areas in private vehicles.
If the march of the avatars is scary,
DHLs fourth scenario is at first sight
more comforting. In this possible future,
technology maximises re-use, recycling
and the better use of resources.
Leasing and sharing models are
common: access to products is more
important than possession. Prediction
extends to consumer durables which
themselves are made to be repaired
rather than replaced - a major activityfor logistics firms is to provide spares
and fitting and maintenance services,
often on a predictive basis to a leasing
contract. A lot of manufacture is
represented by localised 3-D printing
facilities with closed loop recycling.
Manufacture and retail is local and
regional, not global. Physical retailers
offer repair, maintenance, and new and
used goods to lease or borrow. Barter,
and alternative currencies have a role.
If this appeals to the inner hippy,
though, consider the circumstances.
This scenario has been forced because
economic crisis and stagnation has
become the norm, trade barriershave been thrown up (cross-border
retail sales have disappeared for
many product lines). Energy costs are
high and environmental problems
mounting - transport costs and
regulations are onerous and also
discourage long distance trade. The
very fact that electronic goods, like
others, are now built to be repaired
rather than replaced has almost halted
IT innovation. The Internet itself is
regional rather than global.
Despite all of this, suggest DHL,
most people are reasonably satisfied.
Each case has plausibility - one can
imagine a resurgent US economy
dominated by surf dudes (case 2) or a
South Korea with an avatar on every
shoulder and a drone buzzing in every
year (case 3). One can also imagine
regions (former USSR? A post-Euro
Southern Europe?) showing features
of the fourth case. Juergen Gerdes
was at pains to emphasise that none of
these cases is a DHL prediction - inpractice, a little bit of each scenario will
probably turn into reality. We just dont
know which bits.
The only
restrictions on
online retailing
will be imposed
by the logistics
infrastructure,
7Logistics Business Magazine | September 2014
E-TAILING IMPACT
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The owner of a medium-sized
boutique textile maker based in
Bandung, Java, which supplies a
range of fashion outlets across Europe
bemoans the difficulty of reaching his
customers in Europe. He accesses
international shipping services at
Indonesias major gateway port near
Jakarta, Tanjung Priok, a distance of
less than 100 miles from his factory.
It will often take a truck six hours or
more, and then there are often delaysat port due to congestion, he said.
And thats when we can get a truck,
which we often cant.
This is a common complaint from
shippers and 3PLs in the Indonesian
archipelago where dynamic economic
growth has not been matched by
investment in infrastructure. Not only
does Indonesia lack a rail freight
system but roads in most regions
are congested or very old usually
both while intra-province shipping
connections from the countrys 1700+
islands add time and cost into supply
chains. Electronic communications
with customs and other government
agencies is also in its infancy, further
slowing up international trade.
The Indonesian Logistics Association
estimates that Indonesias logistical
costs currently consume about 25-
30% of annual GDP, far higher than
comparative figures for Singapore and
Malaysia. After noting that Indonesia
saw a 16.7% fall in import of capitalgoods in the first quarter of 2014
primarily because of transportation
bottlenecks, Mohamad Luthfi,
Indonesian Minister of Trade, earlier
this year called on whoever wins Julys
presidential elections to focus on
improving infrastructure.
Hary Haryanto (pictured), General
Manager Indonesia for U.S.-based
logistics provider BDP International,
said while Indonesias potential was
immense in terms of logistics demand,
air and sea ports facilities were badly
in need of improvements and many
inter-province roads were in a critical
condition.
With the giant scale of the economy,
Indonesia only has limited main ports
for export and import activities such as
Tanjung Priok, Tanjung Perak, Belawan
and Makassar ports, he explained.
Unfortunately, those ports do not
have excess capacity to handle the
influx of cargo. Highways or toll roadsconstruction in Java - the centre of
business activities have not made
progress for years and on other islands
like Sumatra, Kalimantan and Sulawesi
roads are in even poorer condition.
By Mike King
Indonesias lack of deep draft ports
means that at present it receives very
few mainline container ship calls on
north-south routes, and none to Europe
and the U.S., so most international
shipments must be transhipped.
Indonesias major ports still suffer
from shallow drafts and, while the
countrys economy has been growing
rapidly for much of the past decade,
container port investment has been
sparse, according to Drewry ShippingConsultants. Inefficiencies and delays
are the inevitable result.
Desmond Chan, MD of Menlo South
Asia (pictured), said the lack of high
quality warehouse space was a serious
problem and had resulted in runaway
rental costs. Skilled and experienced
logistics professionals are also difficult
to find and retain, he added. Rising
demand is creating a situation in which
companies are poaching staff.
The infrastructure catch-up is alsocausing unpredictable delivery times
and compromised service standards.
The government should accelerate
infrastructure development like ports
and roads, create incentives for MNC
logistics players to train up their talent
pool and set up training institutes to
meeting logistics needs.
The boutique textile manufacturer
based in Bandung is now thinking
of relocating to Cambodia, partly in
search of low labour costs but also
to reduce transit times to market andavoid the ever rising cost of trucking
on Indonesias under-resourced roads.
Even when we get to port, we often
suffer from cargo being rolled over
when it is transhipped at Singapore
or Malaysia which adds days to
deliveries, he said.
Others, though, are more resolute, not
least because Indonesia offers a huge
domestic market and because, from
next year, the launch of the Asean
Economic Community will graduallycreate a single market covering South
East Asia offering new opportunities
and removing many of the current
blocks on regional trade.
Indonesia:
Challenge and opportunity
Rising demand is
creating a situation in
which companies arepoaching staff.
8 Logistics Business Magazine |September 2014
INDONESIAN LOGISTICS
General Manager BDP International
Hary Haryanto
MD of Menlo South Asia
Desmond Chan
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R E G I O N A L P R O F I L E
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There are also signs that
Indonesia is now addressing
its logistics shortcomings. At
the port of New Priok, adjacent
to existing facilities at the
countrys leading gateway at
Tanjung Priok near Jakarta,a new container terminal is
due to open next year which
will enable larger ships to be
deployed by container lines.
New handling facilities are also
under construction at ports in
Sumatra and at Indonesias
second largest container hub at
Surabaya.
Jakob Friis Sorensen,
President Director of Maersk
Line Indonesia, admitted that
Indonesian shippers currentlypay a modest premium on
freight rates due to the need
to tranship to reach most
destinations. But he said new
facilities and systems would
reduce costs. Most of the logistics
bottlenecks are around import and
export processes, he said. There
needs to be reform of paperwork
systems, preferably by introducing
online systems. Then theres the
hinterland physical restraints. Indonesia
needs more roads. There are plenty ofopportunities to improve end-to-end
supply chains.
As improvements are made at ports
and we can deploy larger vessels, that
will affect unit costs and Indonesian
industry will benefit from this.
Sometimes the challenge of providing
logistics services in Indonesia is down
to re-educating local partners. Wine
is increasingly sought by Indonesias
thriving middle classes and much of it
arrives from Europe. But one importersaid that while import taxes were
prohibitive, preserving the value of the
product at port and during distribution
was the real challenge. There is
no such thing as a cool chain, he
said. There is a real shortage of
warehousing where we can maintain
our products at the right temperature.
We couldnt understand why we were
having problems at one warehouse
in Bali which did have temperature
controlled facilities. Then we wentthere at night and everything was
turned off. The guard said the
generator was noisy so he always
shut it down. We had to explain what
happens to wine if it is exposed to
temperature fluctuations and after that
it was fine.
But despite the many difficulties, most
3PLs and other transport providers are
flocking for a place at the logistics table
in Indonesia.
Indonesia is touted by many as the
next China for growth and this termmeans huge potential for logistics
companies as well, said Chan.
Indonesia has a population of 250
million, making it the fourth largest
country in the world with 67% of its
population in the economic productive
age and a rising middle class. Foreign
companies are setting up production
plants for exports as well as domestic
consumption and infrastructure is
playing a catch up. The first movers are
already enjoying the fruits of their riskbut there is still plenty for the second
wave investors.
Edoardo Podest, Managing Director
for Air & Sea Logistics Asia Pacific at
Dachser Far East (pictured), also said
Indonesia was seeing ever-growing
demand for 3PL services. He cited
its impressive economic growth
figures and projections, allied to a
competitively priced working and
investment environment as, pointers
that Indonesia is well on its way to
become an even more important
market for logistics in the Asia Pacific
region.
And Morten Damgaard, CEO SE
Asia at Agility Logistics, which
has a substantial presence across
the archipelago, said Indonesia
presented both huge opportunities
and challenges. Its a very interesting
market, he said. Manufacturers are
looking for options outside China
where it is now more expensive and
there are only a few alternatives.Indonesia is near the top of the list
and could benefit significantly, further
driving demand growth.
Manufacturers are
looking for options
outside China where
it is now more
expensive
10 Logistics Business Magazine |September 2014
INDONESIAN LOGISTICS
MD for Dachser Far East
Edoardo Podest
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The main issue is geography; it is far
from anywhere and the country is split
into two main islands too far apart for
tunnel or bridge. Inter-island transport
has always been an important feature,
moving goods and people between
major cities, agricultural and resource
centres. However in the 1950s as the
important rail network was completed,
a faster way across the Cook Straight
was becoming increasingly vital.
An air bridge operation was seriously
contemplated, but the governmentdecided that a rail ferry was the way
to go, finally linking the two island
networks. What began in 1962 as a
single ferry on one return sailing per
day rapidly grew to several ships and
multiple daily crossings for rail, trucks,
passengers and cars. It is an appealing
facet of New Zealands transport
network studied internationally.
Inter-island trade is a small proportion
of total freight movements which are
overwhelmingly local, according to longstanding transport expert Murray King.
Taking bulk and export trade (mainly
dairy and logs) into consideration as well,
inter-island is just 2% of the nations total.
It is an important feature though and is
set to grow over the next 30 years, along
with a possible modal shift to shipping,
as larger deliveries to a growing market
make direct shipments to Christchurch in
the south a better option for some than
distribution via Auckland or Tauranga
and moving by rail and road.
Currently most of the freight moving
across the Cook Strait is just in time,
priority freight such as courier, FMCG,
fresh, refrigerated, frozen goods, and
livestock. Only a limited share of this
could use the much slower coastal
shipping option from Auckland to
Christchurch. There are currently five
inter-island ferries operated by state
owned KiwiRail and smaller rival Strait
Shipping. Two of those carry rail as well
as vehicles and passengers.
For the rail operations, a train is splitinto four shorter rakes and these are
shunted into a ferry in quick succession;
turnaround time including unloading
and loading can be achieved in under
an hour allowing for up to three return
trips in 24 hours for rail ferries.
The issue for speed and efficiency is
whether a ferry can take a whole train
in one go. The main rail ferry, Aratere,
was extended in 2011 for extra capacity
while the smaller and older Arahura
may need more than one trip.
Looking into the future, it is possible
that this sea link in the rail network
might end when the current ships are
retired. The reason is simple; specialist
rail ferries are 3-4 times the price of a
straightforward RoRo vessel.
The cost equation gets worse when the
terminals are taking into consideration;
the cramped and ageing rail ferry
berths will need replacing along with
the ships themselves, leading to an
even bigger bill.
The alternative option, already used
when a rail ferry is in a shipyard for
work, is using a bridging operation;
moving containers from rail wagons
to road trailers, shuttling them onto a
conventional ferry using port tugs, then
running the reverse on the far side of
the 96km sea journey.
While introducing potential
inefficiencies and slowing ship
turnarounds, it may be the only
affordable option for Inter-islanders
themselves. Several industrycommentators have suggested that this
is the most likely scenario.
Replacing such a costly piece of
national infrastructure is seen as a
long term political investment and
thus uncertain. So once again New
Zealands rail system may be split into
two separate island networks, while
still trying to compete against road and
coastal shipping. The end of the Dotted
Line.
The Dotted LineAs a young country in the developed world, New Zealands transport infrastructure
has been completed relatively recently, reports Nigel Parry.
12 Logistics Business Magazine | September 2014
REGIONAL PROFILE
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Initially developed for the US Army,
Bluezone technology this year became
subject to the necessary steps for
being applied to the commercial
shipping sector. An achievement
made possible through a partnership
between Primaira LLC, a Boston-based
technology company, and Maersk
Container Industry (MCI), the container
manufacturing unit of the A.P.
Moller-Maersk Group.
Bluezone is a patented technology
that, thanks to extensive tests and
trials, has shown efficient elimination
of molds, fungi and bacteria, by using
an ozone concentration 300 times
higher than otherwise seen on the
market, achieving the highest levels
fresh preservation in a cost effective,
efficient and reliable configuration.
MCI and Primaira have partnered
to integrate the Bluezone into Star
Cool containers, the refrigerated
units manufactured by the Danishtransport operator. In the words of MCI
chief commercial officer, Soren Leth
Johannsen, this integration involves an
enormous change in the market.
The economic and environmental
gains of converting todays airfreight
into reefer containers are possible
thanks to the integration of Bluezone
with MCIs well-known CA and AV+
systems (Controlled Atmosphere and
Automatic Ventilation), increasing the
geographical reach of containerizedtransport and preserving the quality of
fruit and vegetables.
These milestones make reefer
container owners feel enthusiastic.
The director of refrigeration services at
Seaboard Marine Ltd, Clyde Wingate,
said: The systems offered today in
the market, for example using ozone,
are often only temporarily installed per
shipment, meaning it is operationally
cumbersome or the effect, due to a low
ozone concentration, is undocumented.
From a container owners perspective itis also a major concern that ozone, by
its nature, is aggressive when exposed
on rubber, aluminum and copper.
The Bluezone technology has
also demonstrated its great
value in stationary cold
storage, a fact that was
witnessed by Keith
Maggs, of Environmental
Technologies Australia.
Kiwi transport across
Australia has been
benefited from the
Bluezone ethylene scrubbing
and microbial reduction ability. Maggsremarks, the effectiveness of this
technology is to extend the shelf life
and reduce shrinkage in the supply
chain for kiwi fruit.
Growers and Shippers
Bluezone is a technology for ethylene
and mold control, with no impact on
the container or on container volume
capacity. It enables the optimization
of ventilation without concern for
ethylene or microbial build-up. A major
advantage for sensitive products is thelonger shipping distance which is now
possible.
For use in walk-in refrigeration,
Bluezone extends the shelf life of fresh
fruits and vegetables by reducing mold,
rot and waste and maintaining low
levels of ethylene so that fruit does not
spring. In addition, Bluezone eliminates
odours and flavour transfer between
items inside the walk-in cooler.
The miniaturized Bluezone fits in the
commercial or consumer refrigerator to
maintain the flavour, texture and colour,
while reducing mold and bacteria
formation. As many flowers and potted
plants are highly sensitive to ethylene
and microbes, Bluezone is able to keep
cut flowers bright and fresh.
In summary, Bluezone technology
works by removing undesirable
components from the atmosphere
of refrigerated containers, thus
maintaining the colour, texture and
taste of the fruits and vegetables
for longer periods of time. The
partnership between Primaira LLC and
Maersk Container Industry has turned
these technical achievements into
outstanding benefits for consumers,
the market and our environment.
Blue CoolingBluezone is a technology that has demonstrated effectiveness
in extending fresh produce shelf life, reducing product loss
and maintaining product quality, writes Gino Baldissari.
14 Logistics Business Magazine |September 2014
CONTAINER SHIPPING
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Commercial Direction
commercial@portdedunkerque.fr
Tl : +33 3 28 28 77 20
CONTACT/DunkerquePort
: a new hub in Europe
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Looking at the first quarter of 2014 the
overall global scale activities for the
port of Dunkerque were very good.
As forecasted in early 2014, the port
continues to show strong commercial
activity, with the only exception being
that of the coal activity which was
the result of a mildly warm winter
compared to yester years.
Focussing on a positive note, iron
ore activity for the steel industry has
remained strong, along with liquid bulk
activity, container activity, and ferry
services. Deschodt also emphasised
the, two figure increase on overall
activity from the first quarter of this year
compared to last years first quarter.
When asked about their main focus for
this years commercial activity, short
sea activity instantly became a talking
point. For the port, they see this area
of their operations as a key element,
and with the main season lasting fromNovember to May, no doubt we shall
soon see how successful these efforts
have been this year.
The channel route between the Port of
Dunkerque and Morocco is currently
a strong trading route, with the
exportation of fruit of vegetables and
French export of manufacturing goods,
construction goods heading in the
opposite direction.
Six months on from the press
conference in Lille, the desire andambition to attract new investors to the
port still very much remains. With 200
hectors dedicated for redevelopment,
the port certainly holds the capacity
and infrastructure for new companies
to relocate and begin new trading
routes.
Its cheaper for a British investor
to relocate their warehouse at the
Port of Dunkerque than it is to have
the site located in Kent. Certainly,
for neighbouring countries the Portof Dunkerques location is second
to none. And within the port the
infrastructure is equally as impressive
with over 200km of rail routes located
within, which is the biggest in France.
In and around the port there are low
labour costs surrounded with intense
commercial activity, another appealing
factor for new investors to consider.
The distribution element to the cargo
importation is another factor new
investors should look into. There is a
strong emphasis on transforming the
goods within the port, in order to bring
added value. For manufacturers, thefacilities are there for them to bring
pieces into the port, assemble them
and then export them. The low cost of
the land is of course very appealing
and with the rate of qualified labour
remaining high, especially in regards to
mechanics, the port is able to present
a highly lucrative proposition for new
investors and traders.
The target is to increase global
tonnage. We will increase the container
business and we are looking at
increases in the ferry business also,
says Deschodt. As a further boost to
the ports appeal to new suitors, this
year will see a national reform take
place in France regarding the VAT
on imported goods. Providing this
change in legislation occurs it will allow
French ports such as Dunkerque to
compete with Belgian, Dutch and other
European ports on VAT admission.
French ports currently pay higher VAT
then their European cousins, so this
change will allow for administrative
simplification, cutting red tape in order
to allow for increased international
trading and exportation to go through
French ports. Deschodt expressed
the ports desire to make themselves
a gateway for imports and exports
into and out of France, making the
port a European hub to European and
international markets.
www.dunkerque-port.fr
European GatewayFollowing on from our attendance at the annual Port of Dunkerque press event back in
February Alex Cottard caught up with the ports Commercial Director, Daniel Deschodt to
see how 2014 was progressing.
16 Logistics Business Magazine | September 2014
PORT PROFILE
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Still serving the ports after over
95 years is Neill & Brown Global
Logistics. CEO Peter Brown tells
Logistics Businessthat the company
has flourished during the recession,
with 10-15% growth year on year overthe past four years and a workforce
almost doubling to 110. The firm offers
200,000ft2of fully-racked warehouse
storage, and in a 2.5 million
investment, backed by the Local
Enterprise Partnership, is building a
new 40,000ft2warehouse at Marfleet
which will create a further 26 jobs.
Brown says that, People who ten
years ago were moving out of Hull are
now moving back - they are getting
the message that the local economy isworth supporting and will support them
back. In addition, blue chip companies
in Hull who have previously used large
national and international carriers are
reconsidering the advantages of the
service offered by local handlers.
The key to success is, efficient,
competitive, personal service. Not
everyone wants cheap - they want
to pay a reasonable price for a good
service. That may, he concedes,
involve, doing a lot more for the same
money or a bit less.
The companys business focuses
primarily on the North East and the
M62 corridor but trailer traffic by ferry
to Hull can for most of the UK be very
competitive with container traffic via
Felixstowe or Southampton. As well
as North West Europe Neill and Brown
offers weekly services with Italy and
Spain and there is a lot of business with
the Far East. Happily, Brown reports
that export traffic is also busy.
The company has around 20
international partners including agents
in India and the Far East, and an
office in Hong Kong. Recent agency
agreements have been struck with
Koring Freight Forwarders BV of
Holland, Eurogroup SA in Greece,
Nellen & Quack in Istanbul and Nippon
Transport Corp in Japan. Earlier this
year the firm signed an exclusive
agreement with Nellen & Quack The
Green Line, whereby British and Irish
traffic from Gronau-based The Green
Line, both full load and groupage, is
consolidated on the Humber rather
than through ports such as Felixstowe
and Dover. Neill & Brown provides
dedicated vehicles and drivers,
and shipments from Germany haveincreased 500-600% over 2013.
With good rail links there is scope for
intermodal traffic, although double
handling will always be an issue.
The firm handles airfreight, primarily
through Manchester and Newcastle.
The company is also the Hull and East
Yorkshire partner of express pallet
delivery consortium UK pallets.
Neill & Brown is an enthusiastic
participant in World Trade Centre Hull
& Humber, promoting the economic
possibilities of the region. For example,
the company has teamed with chemical
company Nippon Gohsei to build
and operate a 60,000ft2laboratory,
manufacturing, storage and distribution
centre for the innovative packaging
product Soarnol, adjacent to Neill &
Browns own new facility at Marfleet.
Other investments with logistics
implications include Aarhus Karlshamn
(specialty vegetable fats); Crown Paints
(worldwide logistics hub), Morrisons(seafood products) and the choice by
Siemens of Hull (out of 110 European
locations) for a wind turbine plant.
Siemens, says Brown, will attract other
jobs and service industries, and these
developments are creating a feel-good
factor, even if, Half the problem is that
people dont know where Hull is: but
its not just the end of a railway line, its
a good distribution centre.
The old mariners prayer ran From
Hell, Hull and Halifax Good Lord deliver
us. Peter Brown, though, believes that
good delivery starts in Hull.
By Sam Tulip, Contributing Editor
Where good delivery startsSince at least the Bronze Age, the Humber estuary has been the natural point of entry for traffic
from Northern Europe to most of the British Isles, and the Humber ports (which include Hull,
Goole and Immingham) still handle 17% of British maritime trade, some 83 million tonnes, more
than any other port group in the UK.
efficient, competitive,
personal service.
Not everyone
wants cheap
18 Logistics Business Magazine |September 2014
REGIONAL HUB
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R E G I O N A L P R O F I L E
The new Kalmar electric forklift truck is built for heavy-duty work, by the
heavy-duty expert. Enjoy a life cycle cost like never before, with maintenance
costs cut by 50 percent and energy costs by 75 percent, compared an the
equivalent diesel forklift. Not to mention the clean and fresh air in your plant.
So why not join the electric evolution?www.kalmarglobal.com
Electricevolution
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With the above in mind one
important UK business community has
been advised to take heed and expand
beyond its usual trading borders. The
world of the SME (small and medium
enterprises) has changed immeasurably
since the rise of Internet trading and
B2B status. Communicating with new
customers and closing deals can be
done in minutes thanks to the power
of the Internet, but when it comes to
the logistics of getting your goods
forwarded and looking further
afield at global marketplaces
then the game does indeed
change beyond recognition.
Logistics expert FedEx hasrecently commissioned and
published a report titled the
Great British Export Report,
offering a ground-breaking
insight into the export
behaviour of UK businesses.
According to the first edition of
the report, based on the views
of 1,000 SMEs, only one quarter
of UK SMEs are currently
internationally active, with a
third (35%) of UK businesses identifying
tapping into new markets as essential to
their success in the next twelve months.
However, more than half (51.9%) of the
1,000 UK SMEs surveyed said they
would require more support to achieve
this. Trevor Hoyle (pictured) is the
Vice-President of Operations for UK
and Ireland and he is urging UK SMEs
to take heed of the reports findings.
At FedEx we do a lot of work with UK
SMEs, says Hoyle.
Not only have we set up a specialist
team, based in Coventry, to offer advice
and consultation to customers wanting
to dip their toe into the export market,
but we also have access to a huge
network of over 3,000 international
representatives that feed us local,
regional knowledge from across the
globe on a daily basis.
This expertise is invaluable and anyUK SMEs that are choosing to sit on
the fence and not expand beyond
their own borders are missing a trick
and an immediate chance of growing
their business. If they dont grasp the
opportunities that are out there then
their foreign competitors will.
According to the report there is no
shortage in optimism about the future
of doing business overseas. Of thecompanies which currently do export,
41% predict that their activities will be
mostly international in just 5 years
time, rising to 57% in 15 years. 20% of
companies surveyed reported a lack of
technical knowledge and a concern over
the costs whilst 14% were waiting for
economic conditions to improve further.
Hoyle believes that the statistics
speak for themselves. In the UK we
have 0.8% of the worlds population,
so realistically if you dont look at
becoming an international business
then you are losing out on the vast
majority of your potential customers,
warns Hoyle.
Export HelpUK SMEs are urged to takeadvantage of global tradingopportunitiesThe age of Internet trading has opened up a whole new world
of business opportunities, choice and buying power to the
commercial world, writes Chris Price-White.
Hoyle says that now is the time for
UK businesses to prepare for the
internationalisation of their activities.
This will allow them to get off to a flying
start on the global stage and succeed
in driving the UK economy forward as
long as they have access to the correct
support required to help propel them to
continuing international success.
The fact that many UK SMEs may be
wary of stepping up to the international
trading platform is something that
Hoyle is conscious off.
The game really changes
when you look at global trading.
Understanding global, localised
marketplaces, their customs
arrangements, finances and the
fact that their business culture
is often alien to our own is
paramount.
This is why, in January 2014
we set up our specialist team
in Coventry and although only
small they have the back up of
our international colleagues who
know their own logistics sectors
inside out.
The UK Export team at FedEx are
currently working a 12 hour shift 7 days
a week and are more than happy to
discuss any international logistical needs
with new and existing customers.
Its crucial for a business to have
the right blend of personal support,
expertise and network access from the
outset if they are going to be able to
succeed internationally. We understand
improved access is key to international
success. Were committed to maximising
connectivity to the global marketplace toensure UK SMEs gain increased support
they require, concludes Hoyle.
www.fedex.com
20 Logistics Business Magazine | September 2014
EXPRESS LOGISTICS
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R E G I O N A L P R O F I L E
ww.moduslink.com
www.mobiconsystems.com
MAKING THE RIGHT
CONNECTIONS GLOBALLY
LIVERPOOL2
Liverpool2 is a new 300 million container terminal that will reaffirm the Port of Liverpool as
the UKs leading transatlantic port. Once completed in 2015, it will enable direct market
connections to the Americas, India, Far East, Caribbean, Mediterranean and the Baltics.
Liverpool2 will be the UKs most centrally located deep water container terminal,
connecting larger vessels with the UKs industrial, manufacturing and consumer heartland.
To find out more, visit www.peelports.com/liverpool2
Peel Ports. More than Ports.
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Dialight, a global leader in LED lighting
technology, has unveiled the new
Vigilant LED High Bay (pictured) with
industry-leading efficiency for maximumreturn on investment and lower total
cost of ownership. At 125 lumens per
watt (LPW), the Vigilant LED High Bay is
among Dialights most ground-breaking
innovations providing up to 26,500
delivered fixture lumens and backed
by Dialights industry-leading 10-year
full-performance warranty for more
than a decade of reliable, worry-free
performance in the worlds harshest
industrial environments.
Featuring Dialights world class
in-house designed power supply,next generation LED technology and
advanced optical design, the new
Vigilant LED High Bay marks a major
step forward in the future of energy
efficiency for industrial environments.
Since launching their first LED high bay
Illuminating the high-bayin 2009, Dialight has sold hundreds
of thousands of LED high bay fixtures,
setting the highest standard for fixture
design and reliability around the world.
Dialight continues to manufacture
the most advanced LED lighting
solutions for industrial and hazardous
location applications worldwide, said
Roy Burton, Dialights Group Chief
Executive. Our customers can now
benefit from an additional 25% energy
savings, making the conversion to
LED technology an even smarter
business decision with highly
attractive payback periods for their
facility upgrades.
The Vigilant LED High Bay fixture is
currently CE compliant and is certified
to UL1598/A and CSA 22 #250
standards for both indoor and outdoorapplications and will soon be available
with UL844 and ATEX/IECEx
certifications for hazardous
locations. At 18 lbs., the 100-
277VAC Vigilant LED High Bay
ships standard with 6kV surge
protection and is IP66/NEMA4X
rated to operate in ambient
temperatures ranging from
-40oC to +65oC.
www.dialight.com/125LPW
Wanzl UK Group has been awardeda contract, for an undisclosed sum,
to supply a range of back-of-house
equipment solutions to The Co-
operative Group. The roll-out to
stores throughout the UK has now
commenced and will continue through
to the end of the year. Wanzl UKs
L&I specialist, Gareth Dando, said
this important breakthrough contract
win for the L&I division demonstrated
Wanzls growing strength as a volume
supplier to the top tier of UK retail and,
firmly established our KT2 and KT3
range as a preferred choice of stock
trolley in this competitive market.
Back-of-store operations areincreasingly under scrutiny as retailers
realize the tremendous potential
for introducing new and more cost-
effective ways of working. These
equipment choices are becoming more
critical for many large supermarket
brands as the UK continues to embrace
omni-channel retail, characterized by
click-and-collect, dark stores and
home deliveries of online orders.
With a diverse range of stores across
The Co-operative estate all operating
varied replenishment processes, theneed was recognized for greater
uniformity both in terms of systems
and equipment. The introduction of
our KT3 and KT2 trolleys is helping
The Co-operative achieve significant
process improvements and efficiencies.
Along with these units, Wanzl are also
supplying a variety of ancillary items and
U-shaped trolleys to provide a complete
stock handling solution in a variety of
operating environments, adds Dando.
Wanzl Logistics are also handling thecomplex and time critical roll out to
2,800 Co-operative stores throughout
the UK, demonstrating the company as
a retail solutions provider with a wide
scope of product, service and delivery
capabilities. The introduction of a range
of high quality stock trolleys, bespoke to
The Co-Operative Groups requirements,
is helping the group deliver new,
improved and more efficient ways of
completing everyday tasks that will
make colleagues lives easier and
achieve greater consistency across
the business. We are very proud to be
able to support the implementation
of this ground-breaking initiative anddelighted to have been awarded this
valuable contract, he concludes.
www.wanzl.co.uk
Back-of-store equipment
Nested Wanzl T24 stock trolleyswith top trays hinged upright savefloorspace in designated bays whennot in use.
Over 20,000 Wanzl KT2 and KT3stock trolleys will deliver back-of-store efficiencies for the Co-operativeGroup throughout their 2,800 storeestate.
22 Logistics Business Magazine | September 2014
WAREHOUSE EQUIPMENT
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R E G I O N A L P R O F I L E
ww.mod
www.mobiconsystems.com
Services include: Design Consultancy On-site training Q.A. Surveying and testing Manual floor grinding Superflat floor grinding with the patented Laser Grinder
Ultraflat floor grinding with the Laser GrinderXPT Bespoke tolerance grinding
Floor joint repairs Floor joint stabilising Wire guidance Re-surfacing of worn out floors General floor surface grinding Screed systems Floor repair & maintenance products
www.cogrigroup.com
+44 (0) 1484 600080The complete service from the CoGri Group
Have you got aFlooringproblem?Whatever operationalproblems your warehouseoor is causing, the CoGriGroup can provide the mostappropriate solution.
Optimise floor performancein new-build or existing projects.
We now deliverto our retail outlets from4 a.m. with silentrefrigerated containers.
Peter DorneLogistics Manager
Portable insulated containersfor transport of chilled or
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Hold temperature for24 hours or more.
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COLD LOGISTICS
www.olivo.fr
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The importance of regional ports,
their intermodal networks and the
connectivity that the lucky few poses
to the increasingly favoured inland
waterways, are amongst the highest
scoring points on a freight forwarders
wish lists when searching for fresh
opportunities in both new and
established shipping channels andports.
The Port of Liverpool, UK has a 300
year-old international trading history
and is currently considered to be the
main gateway to the hinterlands of
middle England, Wales, Ireland and
Scotland. The Port has all the attributes
that a modern freight shipping operator
could wish for and is currently in
one of the strongest positions that
it has enjoyed during its sometimes
chequered, yet historic past.
The recent Maritime Logistics
conference, staged by The Merseyside
Maritime Association as part of the
Mayor of Liverpool, Joe Andersons
inaugural Liverpool International
Festival for Business, confirms the
Ports intentions to become the UK
North Wests number one destination
for international shipping and freight
forwarders. Already the Port plays host
to big shipping names like ACL, CMA
CMG, Maersk, Bibby Line, Zim Uk and
Peel Ports.
The whole atmosphere at the three-
day long conference was one of
positivity and optimism. Ian Millen, chief
operating officer of Dryad Maritime
Projects, and chairman of the MaritimeSecurity Working Group, believes
that to be involved in shipping and
logistics is still an attractive proposition
to young, skilled workers. Rounding
off a debate on promoting shipping
logistics as a modern career choice he
closed the session on an up-beat note
saying that sections of the public and
decision-makers could be won over.
If you give people a chance, they love
the idea of ships, concluded Millen.
A Bright futureThis event was also viewed as a huge
success by the Merseyside Maritime
Association with the Associations
chairman John Hulmes delighted with
the shipping and freight forwarding
industries response to the event.
This was a very late addition to the
International Festival of Business but
one that we felt was essential, says
Hulmes.
By Chris Price-White,
Contributing Editor
This is an established port with a
very bright future and its ongoing
development and the opening ofthe Liverpool 2 facility next year has
piqued a growing interest in what is
going on here. The response to this
event has been excellent and the
quality of speakers, delegates and
support we have received has been
overwhelming.
Co-sponsors of the event were
Shipping Innovations, part of the
Petrospot Group who launched the
London international Shipping Week
event in September 2013. Llwellyn
Bankes-Hughes is the Groups MDand he says that international interest
in what is going on at the UKs major
ports is on the crest of a wave.
After our London event in September
last year we did not hesitate when
we were asked to get involved in the
Liverpool event, says Bankes-Hughes.
The focus is very much on modern
shipping logistics and many aspects
of the promised developments at
the Liverpool 2 facility support this
increased interest in what is going onhere. This resurgence of international
interest in regional ports augers well
for our next London event being
staged in September 2015.
A North Western Approach
Dawn of a new ageat historic port
24 Logistics Business Magazine | September 2014
PORT PROFILE
Port Director at Peel Ports Group
David Huck
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One of the main driving forces behind
the ongoing development of Liverpool
Port is Peel Ports, who have dug deep
into the coffers placing 300m of
their own money into developing both
facilities at the futuristic Liverpool 2
terminal and at their fully-automated
steel roll handling dockside hub thatwent live in 2013.
David Huck is Peel Ports Port Director
at Liverpool and he sees the future
as adventurous and rewarding.
Starting off with the opening of the
fully automated steel roll facility in
2013, laying down the initial plans was
indeed daunting, states Huck.
We were asking our shareholders and
investors to back a plan to create a
fully-automated facility that would be
capable of operating 24/7 at the timethat the steel industry, not only in the
UK, but globally was going through a
sticky period. This forward thinking,
however, got full support and we are
now in a prime position to serve this
highly important industry.
The fact that we can now provide a
docking facility and throughput for the
steel that is shipped means that we are
an essential cog to all central UK steel
using industries and this puts us in a
strong position. Even locally we have
major automotive plants at both Speke
and Halewood and this now definitely
gives us a bang for our buck as we
put our faith in this project at end of the
recession in 2010-2011, when neither
automotive or steel were industries
revelling in a strong market position.
Huck believes that this buccaneer
attitude is prevalent throughout the
Peel Ports group and is part of the DNA
that drives the business forward. He
says that they continually think outside
of the box and show a very innovativeapproach to a business that doesnt
just move cargo on and off vessels.
We are a real, true logistics partner
investing in the latest technology,
infrastructure and processes whilst
bringing in the core talent of our
people to bring about those solutions.
Showing expertise
Huck says that the bravado shown
at the beginning of the project was
measured and calculated. When we
broached the project we knew that our
expertise in handling steel coils, our
lean towards automation and indeed
our geographical position made the
project an exciting proposition and
something that is now showing its
merit.
Peel Ports 3m investment program
to upgrade the existing Gladstone
Steel Terminal (named after Britainsfinest Prime Minister who was born in
Liverpool) with Caregos automated
facility management system, includes
an upgrade of the Gladstone
Steel Terminal warehouse and the
introduction of automated cranes that
have doubled gantry crane capacity.
The employment of the fully-automated
Carego FMS (facility management
system) and Carego IMS (inventory
management system) enables real time
stock visibility through reporting andweb portals and that has improved
the booking process for outbound
steel and the reporting of inventory
management and hub capacity levels.
We put faith in steel when it was in
the doldrums and we now feel that
we can offer not only the best port
side steel cargo handling facility in
the UK but also one of the best in
Europe. Although its early days, we
have been extremely pleased with the
performance of the up-rated Gladstonehub and have received great support
from our shareholders and principal
customers alike.
Looking towards the forthcoming
year Huck believes that Peel Ports
300m investment in the deep water
terminal container, Liverpool 2, will not
only focus significant interest on the
companys localised operation but also
their involvement in the region as a
whole logistical hub.
The maritime sector here has a bigimpact on the region not only in service
provision but also in developing skills
sectors and contributing to the region
wide economy.
The Mersey Maritime Association
currently represents the interests
of 1,700 companies employing over
28,000 workers that help contribute
over 2.5bn to the regions GDP.
Huck believes that, with the launch of
Liverpool 2 next year, Peel Ports will be
the prime mover in bringing new skills
sets and business to the region.
The opening of the new terminal will
see the creation of up to 500 new jobs
and we will be helping develop skills
25Logistics Business Magazine | September 2014
PORT PROFILE
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that will run right through the regions
supply chain workforce. These human
skills, along with an advanced use of
automation will help cut the cost and
time of the supply chain journey for
all who choose to pass their goods
through our highly capable handling
channels.
The automation end of the investment
will revolve around Navis N4 terminal
operating system and ABB equipment
controls. Eventually Peel Ports hopes to
implement the operating system at all
of its ports, with Liverpool 2 being the
initial catalyst for the move.
Huck believes that this new,
performance enhancing technology,
married up to the Ports human
skills set, will let the freight shipping
community know that Liverpool 2promises to be a world class act.
Best in class port and logistics
services is always our goal and this
facility promises to be a real flagship,
concludes Huck.
At the TOC Conference in London
late June Logistics BusinessPublisher
David Priestman met David Huck
to gain further insight into the
developments in Liverpool.
Peel Ports are part of a holding group
with a 5bn turnover and 5000employees. Their ports business, as
well as Liverpool, includes Dublin,
Belfast, Glasgow and Sheerness in
Kent. They are therefore the dominant
operator in the Irish Sea. Peel has
access to the Manchester ship canal,
allowing freight to move down the
Mersey to the entire north-west
conurbation and also has railfreight
connectivity.
Liverpool can host vessels up to 4500
TEU, two 380m vessels at any time
on an 850m quay, Huck informed
me. Liverpool port has a footprint of 17
hectares. To the north of the city, we
have a big tidal range of up to 10m. Our
potential is based on 65% of UK and
Ireland population being less than 150miles away. But 90% of UK deep sea
volume goes into ports in the south
and south east of England. This seems
nonsensical.
Having conducted detailed market
research for 18 months Peel Ports
determined that the challenge is
to reach a capacity of 1 million TEU
throughput per year, with STS quay
cranes operating up to 30 mph, 1500
moves per tidal window, 95% of
haulage turned within 90 minutes and
transhipment to Ireland and Manchester
within 24 hours. The company used
simulation to find the best solution.
The objective is to reduce customer
risk while increasing the technological
capability, said Huck. Peel Ports opted
against straddle carriers and in favour of
an automated cantilever, rail-mounted
gantry solution. Its a step-change:
safe, fast and predictable as it increases
throughput and is a good value, future-
proof solution. The container terminal
industry has traditionally been slow toadopt automation but this technology is
mature now. We wanted to streamline
and jettison the old port mind set.
Huck insists that labour flexibility
and capacity is excellent, with lots of
training provided and only 20% union
membership. Productivity is high
and we hire both apprentices and
graduates.
I asked Huck about the concept of
port-centric logistics. Its great as
a talking point but can we do it? At
Peel we can by listening to customers,
responding and innovating. Our end-
user customers are diverse: retail,pharma, FMCG. Their voice is getting
louder. Supply chains should be
people-centric. That can mean near-
porting closer to the final customer,
which also reduces CO2emissions.
Next day delivering requires more
warehousing to be localised. We plan
to introduce 500,000ft2DC space
here to add to the 3 current, mainly
multi-user (due to seasonal demand
variability) facilities.
One objective is to improve informationsharing with shippers and the previous
port of call, so that real-time exchange
enables a right first time operation.
Were only as good as the inputs and
transparency (eg regarding delays) we
receive. If we have quality information
we can drive an efficient service.
www.peelports.com
www.merseymaritime.co.uk
Liverpool can host vessels up to
4500 TEU, two 380m vessels at
any time on an 850m quay,
26 Logistics Business Magazine | September 2014
PORT PROFILE
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Logistics Business:RTL is historically
strongest in automotive full-cycle
logistics. What other industry segments
is the company strong in or looking to
expand into, how and why?
Konstantin Skovoroda: The RTL
company is historically not only strong in
the full cycle automotive logistics, which
is a part of manufacturing engineering.The company seeks to expand its
footprint in the engineering, energy,
oil and gas sectors. Our company is
interested in these industries in terms
of providing services in ports, cargo
delivery, customs clearance and
special tailor-made customs clearance.
Moreover, our company also plans
to expand its expertise in the sphere
of project cargo handling, in such
industries as manufacturing engineering,
oil and gas, as well as energy.
I would like to note that RTL wantsto develop in these sectors as these
projects allow us to increase our
competence in complicated and long-
term projects. Participation in such
projects allows the company to balance
both human and material resources for
major projects lasting several years.
Logistics Business:What are the major
hubs and ports you operate to and from
and what infrastructure investments are
RTL making in them?
Konstantin Skovoroda:RTL operatesin all major Russian ports: in the North-
West region - the port of Ust-Luga
(Novaya Gavan Terminal), Sea Fishing
port in St. Petersburg, in the South of
Russia - the port of Novorossiysk, in
the Far East - ports of Vladivostok,
Nakhodka and Vostochny. Our
company also has a broad network of
agents in the ports of China, Southeast
Asia, Japan and Korea (South Korea
in particular), as well as in several
European ports (Antwerp, Rotterdam,
Amsterdam and Hamburg).
Besides this, RTL plans to expand
international cooperation with the ports
of Kazakhstan, other Caspian ports
and with stevedoring companies in
the Black and Mediterranean seas,
enabling the company to increase its
operations with project cargoes and
container shipments.
Logistics Business: You have
subsidiaries in China and Kazakhstan.
Is Asia a big growth area for RTL and
what other Asian countries are youoffering supply chain solutions to?
Konstantin Skovoroda: RTL is
developing its presence in China
and Kazakhstan. The company also
plans to expand its business in other
countries in the Middle East and
Central Asia, such as Uzbekistan,
Tajikistan and Turkmenistan. Since
these countries are building new power
and chemical processing plants there is
an increase in shipments of project and
containerized cargoes there. Thus, our
company expects a great potential fordevelopment in these areas within the
next ten years.
Logistics Business: RTL offer shipping
and road distribution logistics. Are you
also active in rail and/or airfreight?
Konstantin Skovoroda: RTL provides
cargo delivery by all means of
transport. Transportation of goods
by rail is characterized by rhythmical
shipments on time and in large
volumes that is particularly required by
numerous auto manufacturers, whichare the main target customer segment
of RTL. RTL provides rail transportation,
both operating the rolling stock and
with container use. The company also
performs delivery of finished vehicles
involving partners equipment - owners
of rolling stock. Railfreight is essential
for transportation over long distances
to RTL operating terminals, where the
cargo is rolled in / out.
Id like to mention that RTL uses
airfreight for express delivery of spare
parts. The location and availability of RTL
offices at Russian airports enables the
company to carry out customs clearance
without delay.
Logistics Business:Without wishing to
get too political, our readers (mainly in
western Europe) would be interested
to know how the current quarrels over
Ukraine and sanctions are affecting or
could potentially affect your business,
or what your commercial viewpoint is
regarding the need for free trade and a
stable business climate?
Konstantin Skovoroda:Of course,
Ukraine is a very interesting business
market for RTL. I should remind you
of the moment of RTLs foundation in
2004 - when vehicles (Bogdan vans
and Chevrolet Lanos) from Ukraine
were received and stored at RTLs
Customs & Logistics Terminal (CLT) in
Novoshakhtinsky, which is based in
the Rostov region, 12km from the state
border in the city of Novoshahtinsk.
Later on Nissan, Ford, Toyota and
Hyundai assembly plants emerged in
Russia and the situation changed, and
since that moment we have started to
deliver cars from Russia to Ukraine.
Unfortunately, the politically unstable
situation in Ukraine has had a negative
impact on the freight traffic market,
significantly reducing the amount of
cargo delivery on this route. As our
company only executes the orders of
our clients, the cargo owners, we had
to reduce our presence in the Ukrainian
market. However, the Novoshakhtinsky
CLT is operating normally and continuesto execute customs clearance smoothly.
Hopefully, political tensions will subside
soon, and trade relations between
Russia and Ukraine will resume at the
same or even greater volume.
www.rtlgroup.ru
The full cycleLogistics Businessinterviewed Konstantin Skovoroda (pictured),
CEO of Russian Transport Lines (RTL), a major regional 3PL, to
gain insight into the opportunities and challenges of supply chain
management in Russia and its various surrounding markets.
28 Logistics Business Magazine | September 2014
RUSSIAN LOGISTICS
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The summer weather is in full flow,
which presented the perfect day for the
Independent Transport Commission
(ITC) to launch their report on Freight
and the UK Economy recently.
To give a little background knowledge,
the ITC was founded in 1999 and is at
present Britains leading independent
research charity that is committed to
providing insight and analysis into
key long-term strategic issues in the
fields of transport and land use. The
ITC also focusses on the long-term
consequences of current policies,
whilst considering new approachesand offering recommendations for the
future. Members from the ITC lead the
events of the evening presentation: Alan
Baxter CBE, the ITC host, plus Philip
Roe (DHL), Perry Glading (Forth Ports)
and Nick Gazzard, (lead researcher
and CEO of Incept), who gave their
contributions to the reports findings
and the research that was undertaken.
There has been a noticeable change in
global trade and connectivity patterns,
along with the rising costs of adhering to
environmental legislation. The report has
identified the crucial methods by which
the UK freight and logistics industry
may be able to improve its efficiency.
During the conference several key
trends that shape the UK freight
movements were highlighted. The
first is the growth in online shopping
and e-commerce. This phenomenon
has led traditional supply chains to
become fragmented. The report also
highlighted the increase in the size of
container ships, which as a knock-on
effect has seen the rapid growth of
development for mega port hubs and
port-centric logistics. Sustainability
policies have also been on the increase
and at present are adding up to 20% to
logistics costs.
During the event, the ITC gave their
recommendations on how the UK
should best prepare for the anticipatedchanges in the global and domestic
supply chain. Empty domestic container
movements are a key issue within
the UK. The ITC have been exploring
how we can reduce the movement of
empty containers in the UK. The length
of time taken to move containers in
and around a port is a key cost driver.
Increasing the speed and also the
availability of the containers during
periods of high demand would certainly
aid in reducing the costs of empty
movements.
Looking into the developments of
port-centric logistics, the ITC have
seen a clear shift to multi-mode freight
transport and port-based warehousing,
which has the potential to dramatically
change the logistics network with in
UK, whilst offering multiple benefits to
adopters of this new approach. The
importance of the UK logistics sector
should not be underestimated. Thesector employed over 2 million people
in 2011 in up to 196,000 companies,
with estimated revenues of 61 86
billion. These statistics alone show how
crucial the logistics sector is and how
it represents a key source of economic
growth.
To end on a philosophical note, Alan
Baxter quoted Uri Dadush, World Bank
Trade Director; As a main driver of
competitiveness, logistics can make
you or break you as a country intodays globalized world. For me, I feel
this best summaries the ITCs findings
in this particular report.
With the growth of on line shopping
and the constant need for efficient and
reliable delivery and transportation
solutions, the UK economy is under
increased pressure to adapt to
changing customer requirements. With
one eye on customer service and the
other on reducing costs in an industry
which, as we all know, operates within
fine margins. This report is a necessaryneedle on the compass, with UK firms
hoping to be pointed or at least guided
in the right direction.
The future of freightBy Alex Cottard
30 Logistics Business Magazine | September 2014
FREIGHT TRANSPORT
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