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Hans-Ludger Körner, Chief Financial OfficerRöhlig & Co. Holding GmbH & Co. KG
Logistics Forum Bremen, 10th November 2011
Strategic considerations for network expansionin the economic region Rio de la Plata
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The tango originated in Buenos Aires and Montevideo at the same time, on both sides of the Rio de la Pl ata
The Tango is always in a move
Everyone develops something new, and contributes to
the fact that the tango is alive ...
���� … as well as in Logistics
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Viceroyalty of the Rio de la Plata (established 1776)
The Viceroyalty of the Rio de la Plata was the
southernmost of the Spanish viceroy empires in Latin
America. It comprised roughly the present states of
Argentina, Bolivia, Paraguay and Uruguay .
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Agenda
• About Röhlig
• Criteria for network expansion
• Former status quo
• Facts on Latin America
• Challenges
• New structure Röhlig Latin America
• Actual growth
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About R öhlig
Start
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Agenda
• About Röhlig
• Criteria for network expansion
• Former status quo
• Facts on Latin America
• Challenges
• New structure Röhlig Latin America
• Actual growth
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Criteria for network expansion
• Growth
• Compatibility with existing network
• Manageability of processes
• Profitability
• Opportunity
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Agenda
• About Röhlig
• Criteria for network expansion
• Former status quo
• Facts on Latin America
• Challenges
• New structure Röhlig Latin America
• Actual growth
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Former status quo:Röhlig in Latin America before the current expansion
• Only Röhlig country was Chile
• 20 countries covered by Agents /Premium Agents
• Figwal (Brasil) largest agent and owned by former Röhlig employee
• Agents are in control of business (85% of all shipments)
• Lack of Economies of scale
• Lack of unified IT and processes
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Agenda
• About Röhlig
• Criteria for network expansion
• Former status quo
• Facts on Latin America
• Challenges
• New structure Röhlig Latin America
• Actual growth
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Growth potential in Latin America
European Union
• 501 million people• 27 countries• Nominal GDP 16,4 trillion USD (2009)• GDP: 2,0% (2010)• Merchandise Trade 2009 (million USD)
- Exports (FOB) 1.528.265- Imports (CIF) 1.673.318
Latin America
• 570 million people• 21 countries• Nominal GDP 3,9 trillion USD (2009)• GDP: 5,7% (2010)• Merchandise Trade 2009 (million USD)
- Exports (FOB) 614.879- Imports (CIF) 615.498
USA
• 310 million people• 1 country• Nominal GDP 14,1 trillion USD (2009)• GDP: 2,6% (2010)• Merchandise Trade 2009 (million USD)
- Exports (FOB) 1.056.043- Imports (CIF) 1.605.296
38% 46%
Trades (USD) in comparisonto European Union:
Trades (USD) in comparisonto USA:
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Facts on the former viceroyalty states
Argentina Uruguay Paraguay Bolivia Germany
People (mio): 40,5 3,5 6,4 10,9 81,7
Industries: oil, gas industry agriculture wood, meat mining industry (lithium, automotive,
agriculture ore, silver, natural gas) mechanical eng.
chemical ind.
GDP / head (USD): 9.135 7.172 1.802 1.342 40.273
GDP total (billion USD): 370 22,9 14,8 13,2 3.286
Transp. infrastructure:
Train + - - - +
Road + +/- - - +
Ship/Vessel + + +/- +
(Rio de la Plata) (Rio de la Plata) - -
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Argentina – Export and Import information
Quelle: WKO
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Argentina – Development of …
… GDP [annual percentage change; real] … exchange rates [ARS/USD]
… inflation rate [annual percentage change]
2010 2011 2012 2013 2014
10,5 11,5 11,8 11,0 11,0
� inofficial estimation = factor 2,5
… growth rate [export and import]
Quelle: GTAI Quelle: OANDA
Quelle: Wikipedia
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Uruguay – Export and Import information
Quelle: WKO
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Uruguay – Development of …
… exchange rates [UYU/USD]… GDP [annual percentage change; real]
… inflation rate [annual percentage change]
2010 2011 2012 2013 2014
6,7 11,5 11,8 11,0 11,0
Quelle: GTAI Quelle: OANDA
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SWOT analysis: Example Argentina
• Natural resources• Productive agriculture• Transport infrastructure• Level of education• European affected culture
• Labor force potential• Proven flexibility of employees/
companies• Potential of renewable energies• Potential for cooperation in research
and technology
• Pro cyclical economic policy• Weak local capital market while
restricted access to international capitalmarket
• Little competitivness of industrialcompanies
• Ranking in corruption index
• High concentration on few agriculturalproducts
• Inflation � pressure on staff costs andreal upward revaluation of the Peso
• Incalculable market interventions of thegovernment
• Possible shortages in energy supply
Quelle: GTAI
Strenghts
Opportunities Threats
Weaknesses
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Agenda
• About Röhlig
• Criteria for network expansion
• Former status quo
• Facts on Latin America
• Challenges
• New structure Röhlig Latin America
• Actual growth
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TOP 5
LATAM
Ranking „Ease of doing business“
Quelle: The worldbank (http://www.doingbusiness.org/rankings)
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Agenda
• About Röhlig
• Criteria for network expansion
• Former status quo
• Facts on Latin America
• Challenges
• New structure Röhlig Latin America
• Actual growth
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ArgentinaBuenos AiresRosario
UruguayMontevideo
ParaguayAsuncion
BoliviaLa PazSanta Cruz
USAMiami (HUB)
ChileSantiago
Offices in Latin America after expansion
• 6 Countries• 8 Branches• 108 Employees
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Agenda
• About Röhlig
• Criteria for network expansion
• Former status quo
• Facts on Latin America
• Challenges
• New structure Röhlig Latin America
• Actual growth
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Growth Story R öhlig & Pro Cargo[Jobs/month]
2008 2009 2010 2011
*) estimation
+50% +38% +95%*
Networkexpansion
Latin America
