logistics business magazine september 2014

8/10/2019 Logistics Business Magazine September 2014

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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.

[email protected]

Contemporary trendsin logistics


4/844 Logistics Business Magazine | September 2014

IN THIS ISSUE OF

Logistics Business Magazine

CONTENTS

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ISSN: -

In association with:

Logistics Business IT - www.logisticsbusinessit.com

Publisher:David Priestman + () / [email protected]

Publishing Assistant:Alex Cottard + () / [email protected]

Advertising Director:Jim Gosney + () / [email protected]

Production & Accounts Manager:Paul Dixon + () / [email protected]

Circulation & Customer Service:Alan Bosworth + () / [email protected]

Contributing Editor: Chris Price-White [email protected]

Contributing Editor: Sam Tulip [email protected]

Marketing Manager:Mel Brill + () / [email protected]

IT Manager:Pav Guberov - [email protected]

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.


5/84

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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


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.


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.


CONTAINER SHIPPING


15/84

Commercial Direction

[email protected]

Tl : +33 3 28 28 77 20

CONTACT/DunkerquePort

: a new hub in Europe


16/84

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.


PORT PROFILE


17/84


18/84

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


REGIONAL HUB


19/84


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


20/84

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


EXPRESS LOGISTICS


21/84


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.


22/84

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.


WAREHOUSE EQUIPMENT


23/84


ww.mod

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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

frozen products.

Hold temperature for24 hours or more.

30 different models

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COLD LOGISTICS

www.olivo.fr


24/84

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


PORT PROFILE

Port Director at Peel Ports Group

David Huck


25/84

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


26/84

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,


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.


RUSSIAN LOGISTICS


29/84

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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


FREIGHT TRANSPORT


31/84

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logistics business magazine september 2014

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