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1L O R E M I P S U M

Kühne + Nagel World Nr. 2/2007

AfricaWell positioned to expandinto new markets

2010 Soccer World CupA continent awaits the starting whistle

worldM A G A Z I N E NO . 2 / 0 9

Journal_KN_World 2_2009 3009 uk:Layout 1 30.09.2009 9:35 Uhr Seite 1

Contents

Imprint

Published by

Kuehne + Nagel International AG

P.O. Box 67, CH-8834 Schindellegi

Telephone +41 44 786 95 15

Fax +41 44 786 96 90

E-mail: [email protected]

Editor

Robert Cathomas

Design and layout

Kaufmann Kommunikationsdesign

Print

Wilhelm Zertani

Druckerei und Verlag

D-28001 Bremen

Frequency

Twice a year

Languages

English and German

Print run

33,000

Focus6 Interview with Regional Manager

Dave Swart

8 Final sprint to the 2010 Soccer World Cup

11 Attractive airfreight solutions for West Africa

12 Flowers from Mount Kenya

14 Kuehne + Nagel always finds a way

Inside18 A control tower for Philips

Healthcare’s global distribution

Markets & Products22 Managing size XXXL imports

24 KN Login: Visibility as a success factor in logistics

27 Shoes for a better chance in life

Round the World29 Heavy lift express in Vietnam

People & News32 The success of logistics

depends on people

2 C O N T E N T S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

K U E H N E + N AG E L . . . . . . . WO R L D N O . 2 / 2 0 0 9


Dear readers

3E D I T O R I A L. . . . . . .


“We want to show that Africa’s time has come,” were the words of South Africa’s Presi-dent Thabo Mbeki with regard to the 2010 Soccer World Cup. This great sporting event,which is feverishly awaited by millions of fans all over the world and has the entire con-tinent in its thrall, is an enormously important prestige project for the country of SouthAfrica. A few months before the starting whistle most of the extensive preparatorywork, which includes many highly ambitious infrastructure projects, is close to comple-tion. The logistics experts of Kuehne + Nagel have contributed to the punctual and suc-cessful conclusion of a number of these construction projects.

However, Kuehne + Nagel’s interest in the African market is not just a recent develop-ment; we have been active for decades in a number of African countries and have con-tinuously expanded our presence there. We are now represented in 32 countries, insome of which we have gained the position of market leaders. The close links betweenour African locations and our global network enable us to provide a growing number ofcustomers with tailor-made, integrated services to, from and on this continent.

The key to our success is the combination of comprehensive logistics experience withspecialised industry know-how. Precisely in regions like Africa, whose transport infra-structure often leaves much to be desired, an additional factor is absolutely essential:a first-class knowledge of local conditions. The articles on the following pages showwhat Kuehne + Nagel’s experts, with their experience and creativity, are able to achieve.

I wish you an entertaining read.

Your Reinhard LangeCEO Kuehne + Nagel International AG



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Kuehne + Nagel in AfricaWith its own facilities in 44 locations in 13 countries, including warehouses with a total area ofaround 80,000 sqm, and partnerships with highly reputed agents in a further 19 countries, Kuehne +Nagel has an efficient transport and logistics network also on the African continent. In a some-times decades-long process the company has established itself in a leading market position in



5F O C U S. . . . . . .

various key countries and rapidly growing industry sectors. Some 1,100 employees contributetheir logistics expertise and excellent knowledge of local conditions to an attractive serviceoffering which is meeting with a growing demand from Kuehne + Nagel’s customers in Africa andthe rest of the world.


6 F O C U S

A F R I C A

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Well positioned to expand into new marketsDave Swart, Regional Manager for sub-Saharan Africa, speaks about a continent that has a promising growth potential despite major political, economic and infra-structural challenges

Born and raised in South Africa, Dave Swart

completed a Bachelor of Commerce degree

at the University of Cape Town; following

this he graduated from the University of

South Africa with a Certificate in Theory of

Accountancy and completed his studies by

qualifying as a Chartered Accountant of

South Africa. In 1992 he began his logistics

career at UTI, an international forwarding

company, where he held general manager

positions for Finance and Africa Exports.

In 1997 he became managing director of

his own company Airborne Express, which he

sold in 2002 to take the position of mana-

ging director for South Africa of the Nippon

Express agency. In 2006 he joined Kuehne +

Nagel as Regional Manager of sub-Saharan

Africa, the position which he holds today.

Mr. Swart, by generated turnoverAfrica is still the smallest region forKuehne + Nagel. What is its strate-gic importance for the Group?It is the smallest region in terms of gen-erated turnover, but Africa as a wholehas experienced one of the largest aver-age GDP growth rates over the last fouryears. This is due in a considerable partto the new interest shown by the eco-nomic powerhouses in this emergingmarket, especially China, which hasinvested massive amounts in Africa inorder to secure rights to its naturalresources. This offers Kuehne + Nagelgood opportunities for opening up newmarkets and expanding existing ones.Today, however, it is necessary to havefully fledged operations in most of thelarge countries which work on the sameplatform globally and which offer thesame levels of service as our customersexperience worldwide. To ensure this isour most important challenge.

What is your current coverage, and inwhich countries do you see furthergrowth potential?We have our own offices in 13 countriesand have well respected agents, somewith Kuehne + Nagel implant teams, in afurther 19 countries. In the remainder ofthe countries which are mostly in WestAfrica, we work with non-exclusiveagents as needed. With over 50 years inAfrica, we are very well positioned to bepart of this continent’s emergence. We

see a major growth in the oil producingcountries as well as major developmentsin the East African countries with astrong export trade, and the Maghrebbecomes increasingly interesting as aproduction site. South Africa remainsparticularly attractive, not only becauseof its size and relative stability but alsoas an important trading partner for therest of Africa.

Which industries are important forKuehne + Nagel in Africa?We are particularly active in a number ofindustries. One of them is the oil and gasindustry in West Africa, where Kuehne +Nagel has offices in the three main oil pro-ducing countries and handles a largenumber of global customers. The export ofperishable goods is another importantsector. We are the market leader in flowerexports from Kenya, and also providemany services in the import of perishablesto South Africa. We are active for manycustomers there in the consumer marketand naturally are involved with big projects especially with regard to the infra-structure development associated withthe Soccer World Cup in 2010. Emergencyand relief cargo is likely to remain animportant market in the foreseeablefuture. Here Kuehne + Nagel is involved

“With over 50 years in Africa, we are very well positioned to be part of this continent’semergence.”

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with all well-known organisations andcoordinates deliveries through its compe-tence centre in Copenhagen and specialunits in Tanzania, Zambia, Zimbabwe,Sudan and Mozambique.

What are the impacts of the econom-ic crisis? Do you start to see light atthe end of the tunnel?In early 2008, as a result of uncertaintydue to the power shortages experiencedin South Africa, the political upheaval inKenya and the general decline in busi-ness confidence, the Kuehne + NagelAfrica organisation embarked upon apolicy of cost constraint and reductionand at the same time increased its salesactivities. This resulted in us being verywell prepared for the global economic crisis so that, at this stage, we are stillperforming well in comparison with2008. Although we have definitely seena reduction in freight volumes and a GDPgrowth for the whole of Africa of onlyone per cent is predicted for 2009 and2010 as compared with six per cent inprevious years, the South African economyis being buoyed by the infrastructuredevelopment and construction associat-ed with the coming Soccer World Cup.The prices of the commodities produced

in many African countries are predictedto rise, and we feel that mining activitieswill once again become lucrative, result-ing in major investments that will gener-ate substantial investments which, inturn, have an immediate effect on logis-tics operations.

One of Africa’s main problems is itsinsufficient transport infrastructure.This is indeed the largest obstacle inAfrica. Not only are there poor or non-existent rail networks between manycountries and a poor quality road system;another major problem are the severedelays that result from the number ofborder posts and different customsunions which you have to transit. Atsome border posts you can have up to500 trucks waiting weeks in order totransit. In addition, many African sea-ports do not have the capabilities tohandle large volumes of ships and con-tainers, leading to congestion and delaysof up to 60 days which further add to thelogistics costs. As a result, we at Kuehne +Nagel are continually looking at alterna-tive solutions to our customers’ logisticsrequirements. More often than not themost direct route is not necessarily thequickest solution nor the cheapest.

What are your further developmentplans? Are you planning any acquisi-tions?We will continue looking for opportunitiesto expand our network in Africa, but wedo not want to merely have offices in eachcountry; each country organisation mustmake a meaningful contribution to theglobal Kuehne + Nagel network. It is ourintention to look at potential agents whofit the culture of Kuehne + Nagel for pos-sible acquisitions to enlarge our network.We are also actively seeking logistics firmswith experience in certain niche markets.It is our plan to increase our activities inthe mining industry for instance, not onlyin South Africa but also within the rest ofAfrica. However, our principal goal is toincrease our market share in both sea andairfreight.

“Our principal goal is to increase our market share in both sea and airfreight.”

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Kuehne + Nagel’s regional head office in Johannesburg



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the opening event on June 11, 2010 andfor the final one month later, is expectedto be completed by the end of this year.The completion of five new stadiums isalso scheduled for the end of 2009: inDurban (70,000), Cape Town (70,000),Port Elizabeth (48,000), Nelspruit (46,000)and in Polokwane (45,000).

As a curtain raiser to this event, the Con-federations Cup was successfully held inJune of this year using four of the recentlyrefurbished stadiums. This contest wasregarded as a dress rehearsal for the WorldCup, and a number of experts have pro-claimed it a resounding success. FranzBeckenbauer, Chairman of FC BayernMunich and member of the FIFA Execu-tive Committee, was quoted as saying:“The organisation was very, very good,there were no problems and everythingwent according to plan.”

There was a tremen-dous wave of euphoriawhen FIFA nominatedSouth Africa as thehost for the 2010 Soc-cer World Cup five

years ago – not only in the country itselfbut all over the African continent. Sincethe start of the extensive preparations,doubts have been expressed in many quar-ters as to whether they can be successful-ly completed, and, above all, whether theywill be finished on time. How do things

look today, only a few months before thestarting whistle?

In terms of stadiums, it had been decidedto upgrade five existing stadiums, name-ly Soccer City and Ellis Park in Johannes-burg (to 95,000 and 62,000 capacityrespectively), Loftus Versveld in Pretoria(50,000), Free State in Bloemfontein(48,000) and Royal Bafokeng in Rusten-burg (42,000). With the exception of Soc-cer City these have all been completed.This stadium, which will be the venue for

Final sprint to the 2010 Soccer World CupFor South Africa the hosting of the Soccer World Cup 2010 is a prestige project of the highest importance. Kuehne + NagelSouth Africa is involved in a number of the many projects forthe creation of the necessary infrastructure

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World Cup 2010 in figuresInvestments in transport infrastructure: 740 million euro

Investments in stadiums: 1 billion euro

Contribution to GDP from 2006 to 2010: 4.5 billion euro

Number of tickets on sale: 3 million

Cumulative television audience: 27 billion....

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9F O C U S. . . . . . .

Many other infrastructure projects inSouth Africa are closely linked with theWorld Cup. All major airports in the coun-try are being upgraded, in particularJohannesburg International, where thework is almost complete. There alreadyexists a very efficient system of two tothree lane roads around the major cities,which are now partly being furtherupgraded to four or five lane highways.Accommodation capacity is also beingraised by building a number of hotels inaddition to the first class hotels whichalready exist in all major centres. In viewof the enormous numbers of visitorsexpected for the tournament, the authori -ties, in addition, are looking at the possi-bility of berthing large cruise vessels in

Kuehne + Nagel is directly involved in a number of the above mentioned projects by handling the import anddelivery of equipment such as roadmachines and concrete pumps for thecountless construction sites. The logis-tics provider also transports machineryand equipment for the Gautrain project,delivering the items weighing up to 80tons to the required place at exactly the right time. To avoid disturbing thetime sensitive construction work, themachines are generally delivered atnight and lifted directly onto the railswith special cranes under the watchfuleye of Kuehne + Nagel South Africa’sproject division.

In this way Kuehne + Nagel is helping toensure that the ambitious constructionprojects will be completed in time for thekick-off in June 2010 and that the WorldCup tournament will be a great success,an impressive demonstration of SouthAfrica’s capabilities and, it is hoped, anunforgettable sporting and cultural expe-rience.

the bays of major cities, not to mentionthe use of some neighbouring countriessuch as Namibia, Botswana, Zambia andeven Mauritius.

In the field of public transport, variousupgrading projects are in progress inorder to move the spectators quickly andsafely to and from the stadiums. Therecently established “Bus Rapid System”directly connects many newly built sta-tions close to the stadiums with the citycentres. A particularly ambitious projectis the 80-kilometre rail link “Gautrain”,which connects Johannesburg Interna-tional Airport with the important busi-ness centres of Sandton, Johannesburg,Soweto and Pretoria.

“We want, on behalf of our continent, to stage an event that will send ripples of confidence

from the Cape to Cairo – an event that will create social and economic opportunities

throughout Africa. We want to ensure that, one day, historians will reflect upon the 2010

World Cup as a moment when Africa stood tall and resolutely turned the tide on centuries

of poverty and conflict. We want to show that Africa’s time has come.”

THABO MBEKI – PRESIDENT OF SOUTH AFRICA

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A section of the Gautrain construction work near the Sandton suburb Marlboro, Gauteng province



10 F O C U S

A F R I C A

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Kuehne + Nagel gained its first foothold in Namibia with the acqui-sition of the United Shipping company already in 1975; since Janu-ary 1979 the affiliate has operated in that country under the nameof Kuehne + Nagel (Pty.) Ltd. The local company’s business, whichwas then handled by a staff of only four, initially concentrated main-ly on air- and seafreight.

Although these are still among its core activities, today a staff of 50people provides an ever wider range of services such as customsclearance, cross-border road transport to and from Angola and Zam-bia, and warehousing and project operations. Kuehne + Nagel hasoffices at the international airport of Hosea Kutako, in Walvis Bayand in Oshikango / Santa Clara on the Namibian-Angolan border.Its headquarters are located in Windhoek and were recently movedto new premises to accommodate the need for greater space.

To mark the 30th anniversary of its foundation, this January thecompany held a well-attended reception for numerous representa-tives of customers, suppliers and government authorities. On thisoccasion Managing Director Lars-Oliver Nees took an optimistic viewof the future: “I am confident that Kuehne + Nagel, with its exten-sive range of services, will further expand its market position inNamibia. We see interesting potentials in the expansion of our exist-ing business and in the field of integrated logistics solutions, forwhich there is an ever stronger demand.”

30 years in Namibia

School books for Congo’s children

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In a number of African countries Kuehne + Nagelprovides logistics services in the transport anddistribution of relief goods for international organisa-tions. In Dar Es Salaam, a regional hub for this typeof cargo, a specialised department has for manyyears dealt with transit shipments of the UnitedNations to the bordering countries Rwanda, Burundi,Zambia, Malawi and the Democratic Republic ofCongo. In close coordination with the Kuehne +Nagel emergency and relief division in Copenhagen,the colleagues in Tanzania handle all in- and out-going shipments controlled locally by the 14 UNentities that operate in Tanzania. The commoditiesinclude temperature-sensitive goods such as medi-cines and vaccines, but also personal effects of UNemployees and vehicles such as cars and trucks.

As a part of this cooperation, Kuehne + Nagel is also making a major contribution to the Unicef “Back to School” project in the Democratic Republicof Congo. With this broad-based initiative the UN aid organisation helps children in countries in various parts of the world to obtain an education by initiating the construction and rebuilding ofschools, the distribution of teaching materials andthe training of teachers. The goods arriving at thecontainer terminal in Dar Es Salaam are cleared with customs by Kuehne + Nagel and transported to the Unicef warehouses at Goma, Bukavu, Buniaand Lubumbashi in the Democratic Republic of Congo.From these warehouses the education materials are packed into kits and delivered to schools all over the eastern part of the country, where they aredistributed to tens of thousands of children.

www.unicef.org

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to other forwarders and direct customers. Today the “HoustonExpress” operates three times per week directly betweenHouston and Luanda, serving mainly oil and gas industry cus-tomers. It remains the only direct air service between the USAand Angola, and is considerably more attractive than the cir-cuitous route via Europe.

After its arrival in Luanda, however, the freight is still far fromreaching its final destination. A large part of Angola’s majoroil production facilities are located in the remote northernpart of the country and are also offshore. Much of Angola’sroad and rail infrastructure was destroyed in the civil warbetween 1975 and 2002 and still today remains largely unus-able. Most production installations have access to port facili-ties, but on-shipment from the chronically congested port ofLuanda is no option for urgent airfreight consignments. Theoil bases can be reached by air, but only relatively small pas-senger aircraft that are poorly suited for the transport of car-go fly from Luanda. Therefore at the beginning of 2008,Kuehne + Nagel started the “Angola Air Express”, a regularfreighter service between Luanda, Soyo and Cabinda and toneighbouring countries. To provide this service the companytook on long-term charter of an Antonov 32, an aircraft ideal-ly suited for the purpose which can land and take off at theshort airstrips close to the oil bases.

The combination of Houston Express and Angola Air Expresshas now developed into an unrivalled transport facility forthe oil companies operating in Angola (and, increasingly, alsofor customers in other industries), and demand for its capaci-ty is correspondingly strong – a further example of Kuehne +Nagel’s innovative and integrated approach to its industrysolutions.

Kuehne + Nagel offers its international customers from the oil and gas industry tailor-made transport solutions to and from WestAfrica with regular direct airfreight connectionsbetween Texas and Angola

Angola has been an oil producer for over 40 years. Today,OPEC member Angola is the largest oil producer in sub-Saha-ran Africa. In the last few years, new oil concessions havebeen awarded to a number of global oil majors includingExxon, BP, Total and Chevron as well as the state-ownedAngolan company Sonangol, resulting in large investments ina modern production infrastructure and a substantial inboundcargo volume.

This traffic relates mainly to complex project business, dan-gerous goods transport, general sea- and airfreight shipmentsof consumables and the transport of operating and specialistpersonnel. In handling all these tasks Kuehne + Nagel paysclose attention to the reliability of the supply chain and on-time delivery, for failures and shutdowns on the giant drillingrigs can quickly result in enormous costs. Nevertheless,unforeseeable ad-hoc and express shipments are an everydaypart of oil and gas logistics. They may be necessary, forinstance, in the event of unexpected technical problems onthe drilling rigs or events affecting health and safety, a fieldwhere this industry now sets particularly high standards.

Much of the cargo and specialised personnel originates fromHouston, USA, one of the oil industry’s five main global hubsand the seat of many oil companies and their leading suppli-ers. Until 2002 there were no direct air connections betweenthe USA and Angola, so that the Sonangol subsidiary Sonairbegan using its own chartered MD-11 for these supply flights.However, the Angolan oil company soon turned to Kuehne +Nagel for its expertise, entrusting the logistics provider withmanaging the aircraft’s entire 15-tonne cargo capacity. Tosupport this activity, Kuehne + Nagel placed additional per-sonnel in Houston and Luanda and began selling the space

Attractive airfreight solutions for West Africa

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Agriculture accounts for nearly 25 percent of Kenya’s GDP, and three quartersof this East African country’s populationdepend on the sector either directly orindirectly. The production and sale offruit, vegetables and flowers is thefastest-growing part of the economy and

in the last few years has created a largenumber of jobs. As a foreign exchangeearner, it is second only to remittancesfrom Kenyans working abroad.

Kenya supplies cut flowers mainly to theNetherlands and to the United Kingdom,Germany and France. Newer markets,some of them fast growing, are the USA,Japan, Russia and the Middle East.Despite the onset of the economic crisis,exports in 2008 showed a further smallincrease to a total of 93,000 tonnes.With a share of roughly one third,Kuehne + Nagel is the largest perish-ables logistics operator in East Africa.

A F R I C A

Flowers from Mount KenyaThe EU consumes half of all the cut flowers sold in the world,and one in three of them comes from Kenya. As the biggestperishables logistics provider in East Africa, Kuehne + Nagelplays an important role in the time-critical transport of thisexport product which is extremely important for Kenya’s economy

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The production of cut and garden flow-ers is estimated to employ 50,000 to60,000 people directly and 500,000people indirectly through affiliated serv-ices to the industry. If each has fourdependants, the total beneficiaries areroughly two million people or seven percent of the population. The fact thatthese employment opportunities are inrural areas is very important, as they notonly stem migration into the cities butare also an important factor in the fightagainst poverty.

The flower farms are mainly situatedaround Lake Naivasha and Nakuru, inthe Great Rift Valley, Nanyuki and Timauon the slopes of Mount Kenya, as well asKericho in the highlands of Kenya, whichis also a major tea growing area. There,most flowers are grown in special green-houses before they are graded andpacked in large packing houses with atemperature controlled environment.Flowers are held in cold stores awaitingtransport to Jomo Kenyatta Airport forshipping.

Many flower farms nowcooperate with interna-tional organisations andinitiatives that encour-age, support and certify

the observance of improved productionand working conditions. “We wereresponding to a market demand,” saidRichard Hechle, general manager ofPanda Flowers, one of Kenya’s twelveinternationally certified fair trade flowerfarms. “Customers want to know thattheir flowers are coming from a placewith good environmental and social con-ditions.” Many of the 900 employees onthe 45-hectare farm confirm that fairtrade has had remarkable effects ontheir working conditions. “Fair trade hasreally improved the lives of workers andthe community,” says Esther Kinuthia, a junior supervisor standing betweenbeds of red roses in one of Panda’s green-houses.

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Kuehne + Nagel’s logistics solutions inKenya are based on daily direct flightsfrom Nairobi to Amsterdam using spe-cially chartered full freighter aircraftand belly-hold capacity on the regularpassenger flights of various airlines.Flowers that are picked, graded andpacked in the morning need to be deliv-ered to the airport early enough for theevening flights the same day. Farmersused to bring their products to the air-port by every conceivable means, buttoday Kuehne + Nagel collects the flow-ers all over the country according to afixed timetable with five refrigeratedtrucks, all of them equipped with thelatest RFID technology. In Kuehne +Nagel’s own cold store facility at theairport, the company’s employees unloadthe flowers from the trucks and consol-idate the shipments on airfreight pal-lets for the various flights. The facilityis also equipped with the only vacuumcooler in operation in Eastern Africathat can handle two aircraft main deckpallets at the same time. This is usedmainly for shipments from farms with-out their own pre-coolers. Within 24hours of the flowers being picked in thefarms around Kenya, they have landedat their many destinations all over theworld.

In the last few years Kuehne + Nagelhas continuously invested in the devel-opment of an uninterrupted cold chainfor the transport of cut flowers. Coldchain management starts at the pointof harvesting and continues through tothe auctions and outlets around theworld. It also includes advising thefarms and their suppliers and instruct-ing their personnel on matters of quali-ty control. Many customers have ‘dove-tailed’ with Kuehne + Nagel’s systemsand combined them with their own coldchain and tracking and tracing systems.

One such customer is FloraHolland,which has been active for many years asan auctioneer for horticultural products.

With a total ofsix auction cen-

tres in the Netherlands – the countrywhere suppliers and buyers are offeredthe best sales/purchase opportunities –it can be regarded as the largest market-ing organisation for horticultural prod-ucts in the world. In 2008, roughly75,000 tonnes of cut flowers fromKenya were sold at the auctions of FloraHolland. The organisation is con-stantly working on innovative ideas toimprove the cold chain processes. Twonew technologies are currently in thepilot phase: In one project, temperature

loggers are placed on each shipment toallow a daily follow-up of the cool chainperformance, and in the other, Flora-Holland is working on its own trackingand tracing system in which flower box-es are scanned at the farm, upon deliv-ery at the airport and upon unpackingin the Netherlands. All systems areimplemented and executed with assis-tance of Kuehne + Nagel, who is amajor factor for the success of thesetechnologies.

www.fairtrade.org.uk

www.floraholland.com

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book a suitable ship as soon as possiblealthough shipping was not scheduled totake place until mid-2009. Furtherresearch showed that suitable trailersfor post-shipment transport were notavailable in Africa and would have to beimported from France.

At the end of 2008 a task force team wasput together with members representingthe customer, the maritime carrier andthe haulage company. It also includedrepresentatives of a company specialisingin route analysis and road clearance forheavy load transport, and a consultantfor the calculation of the required trailerconfiguration based on the maximumallowed road load of 27.5 kilonewtons.

In February 2009 the preparations wereheld up by an unexpected event. With-out prior announcement the Ministry ofRoads and Works started to upgrade apart of the route from the port ofRichards Bay to the site. Immediatetalks with the road construction firmshowed that an interruption of the workwould involve excessive costs. Further-more, there was no guarantee that thesix-metre-wide trailers would be able topass through the road construction sites.Since no alternative routes were avail-able in South Africa, it was decided totransport the reactor through Swaziland

where a route was found which could besuitable – if certain repairs and modifi-cations were made. So Kuehne + Nagelappointed a contractor to effect the nec-essary alterations at the two borderposts, to strengthen bridges and enlargeroundabouts, as well as raising a pedes-trian footbridge.

In June 2009, after loading had beencompleted under the supervision ofKuehne + Nagel specialists, the char-tered heavy lift freighter sailed from theJapanese port of Shimonoseki with allthe parts of the reactor (total weight 990tonnes or 4,950 seafreight tons). Thevoyage to South Africa went very smooth-ly, as did the unloading operation inRichards Bay, where the two trailers andtwenty-eight trucks were efficiently posi-tioned alongside the ship.

Kuehne + Nagel always finds a wayIn the course of their work, project logistics experts are oftenfaced with enormous challenges. As, for instance, in the trans-port of a reactor from Japan to South Africa which Kuehne +Nagel recently carried out for Sasol Technologies

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F O C U S

Sasol Technologies, South Africa’s secondlargest industrial undertaking, employs28,000 people all over the world and isone of the market leaders in the field ofcoal gas liquefaction for the productionof gasoline and components for the chem-ical industry. In 2007 Kuehne + Nagelwas entrusted with carrying out a feasibil-ity study for the transport of a liquefac-tion reactor from the works at Nagasu inJapan to the Sasol plant in Secunda,South Africa.

On a visit to the Japanese producer, theAfrican project division of Kuehne +Nagel inspected the two enormous reac-tor components under construction (abottom section weighing 419 tonnesand measuring approximately 22 x 9 x 9metres, and a 252-tonne upper sectionmeasuring 18 x 9 x 9 metres) and exam-ined the shipping possibilities at differ-ent ports on Japan’s west coast. It soonbecame clear that due to shippingcapacity restraints, it was necessary to


On the final stage to Secunda there wasa further surprise for all concerned. Onthe last kilometres of the route, furtherunanticipated road works had begun.Thanks to the fast reaction of those incharge of the project, these works werestopped for the time the convoy took topass. After four weeks of “highly event-ful” overland transport, the reactor partsreached their destination safely and onschedule – to the complete satisfactionof the customer and to the great relief ofthe Kuehne + Nagel South Africa projectdivision team.

www.kuehne-nagel.com/projects

www.sasol.com

At the border with Swaziland, where pow-er and telephone cables had to be raised,the passage of the imposing convoyblocked the customs post for all othertraffic for no less than six hours. Furtherchallenges were presented by bad weath-er, which resulted in two days of delays,and a 13 per cent gradient for which fiveadditional prime movers had to be hired.The second frontier crossing back intoSouth Africa at Mahamba had alreadybeen found so “unsuitable” in the routeanalysis that the customs buildings hadto be largely demolished after toughnegotiations with the customs authori-ties of the two countries (and, of course,rebuilt afterwards). It was also necessaryto redirect fibre optic cables, widen roadsand move fences so that the loads couldfollow a tricky slalom route back intoSouth Africa.

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16 F O C U S

A F R I C A


Kuehne + Nagel has been voted the “Best Freight Forwarder in SouthAfrica for the year 2008” by theProfessional Management ReviewPMR. This well-known businessmagazine annually publishes ahighly regarded corporate rankinglist based on a survey carried outamong 30,000 African managersfrom all fields of industry and commerce, public authorities andassociations. This year, for the fourth time in six years, it chose theKuehne + Nagel national companyas the best logistics organisationoperating in the country.

In 2008, for the first time all four of the top award recipients wereinternational forwarders, one reasonwhy Andre van Rensburg, the Man-aging Director of Kuehne + NagelSouth Africa, was particularlydelighted that his company hasagain won first place: “This award is a testimony to the sustainedsuccess of our efforts to gain aleading position as a logisticsprovider in the South African market.Our good performance comparedwith our strongest competitors islargely due to our ability to developinnovative integrated logisticssolutions for our customers.”

Number one in South Africa

Partnership with CIDA Empowerment

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Since 2003 the South African government has made efforts to promote a greaterrepresentation and participation of the black and coloured population majority inthe public administration and the private sector of the economy. In support of thisinitiative, in December 2008 Kuehne + Nagel transferred a 17 per cent holding in its subsidiary KN Tsepisa Logistics (Pty.) Ltd. to the South African investor CIDA Empowerment. This is a public benefit organisation which uses the dividendrevenue from its various corporate holdings to fund the tertiary education offinancially disadvantaged young people. The most important of these projects isthe CIDA City Campus in Johannesburg, a private, non-profit education institute thatprovides students, mainly from rural areas, with free tuition for higher educationalqualifications. For Kuehne + Nagel South Africa the partnership between KNTsepisa and CIDA is an example of the successful implementation of the broad-based Black Economic Empowerment transformation process that brings long-termbenefits to all participants. By its commitment, Kuehne + Nagel actively helps toachieve authentic and sustainable empowerment by providing South Africa’syouth with the opportunity to transcend poverty through education – a goal thatwill enable the logistics provider to recruit local graduates with a sound profes-sional training as members of its staff.

www.cida.co.za

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Students at the CIDA City Campus in Johannesburg



17F O C U S. . . . . . .

Further growth potential in the MaghrebKuehne + Nagel has for many years been one of the leading logistics providers inNorth Africa, particularly on the transport routes between the Maghreb and Ger-many. In 2008 the company strengthened its presence by concluding cooperationagreements with well-known agents in Algeria, Morocco and Tunisia. In collabora-tion with these partners, Kuehne + Nagel can now offer its customers integratedair, sea and land transport services to and from the North African countries.

One reason for the attractiveness of the Maghreb is its geographical proximity tosouthern Europe; many major firms have already relocated production facilitiesthere. In the medium term, Kuehne + Nagel therefore sees an attractive potentialfor growth in North Africa which it intends to exploit by targeting the developmentof new business with key customers and with small and medium-sized firms. Onegood example is the Legrand group, which has entrusted Kuehne + Nagel with themanagement of shipments from its French distribution centre to its customers inAlgeria.

subsidiaries for their international trans-port-related processes. The seamlesssolution provided by Kuehne + Nagelcombines all modes of air, sea and roadtransport for the door-to-door shipmentsfrom the suppliers to all of Ingenico’ssubsidiaries in Europe, North and SouthAmerica, Asia and Australia.

Ben Arous in Tunisia is key to Ingenico’ssupply chain organisation. The productioncentre of Sagem, a company Ingenico

acquired in 2008, manufactures morethan one million card terminals annual-ly, which is approximately one quarter ofIngenico’s total needs. Every monthKuehne + Nagel handles 80 tonnes ofair, sea and roll-on-roll-off shipments toEuropean grouping centres in Madrid,Lyon, Glasgow and Helsinki as well as tofinal consignees located in the rest ofthe world.

In order to match the high performancetargets in regards to on-time delivery, adedicated customer service is monitor-ing the shipments and specific dailyoperational reports are created. Depend-ing on the level of urgency, Kuehne +Nagel is offering different transportmodes, allowing Ingenico to benefitfrom the best option at the moment ofthe shipment.

With the tried and tested solutionKuehne + Nagel strategically supportsthis key customer in its rapid growthwhile Ingenico can focus on their corecompetence services, expanding theirsales and the sales of their customers, beit in the USA, in Japan, China, Mexico orIndia.

www.ingenico.com

Ingenico relies on Kuehne + Nagel’s multi-modal transporta-tion services all over the world. From their Tunisian productionsite, the logistics company ships more than one million cardterminals per year

With over 15 million terminals deployedacross 125 countries, Ingenico is theworld’s market leader in the industry forsecure electronic payment systems andas such an important partner of retail-ers, banks and payment service providersaround the globe.

Since 2007, Kuehne + Nagel is Ingeni-co’s strategic global logistics partner,being the unique interface to all the pay-ment terminal vendor’s suppliers and

From Tunisia to the counters around the world

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A control tower for global distributionFor Philips Healthcare, one of the world’s leading producersof medical diagnostics systems, Kuehne + Nagel is developinga state-of-the-art integrated outbound logistics system. Theplanning and implementation of this large and challengingproject are in the hands of the logistics specialists of theLead Logistics Solutions business field

sector contributes to the group’s totalturnover. With large high-tech computedtomography, magnetic resonance, nuclearmedicine and X-ray products to deliverand install in medical practices and hos-pitals, Philips Healthcare manages achallenging network coordinating 6,000service technicians in over 60 countrieswith complex last mile delivery andinstallation requirements. It was thiscomplexity, matched with their drive for“sense and simplicity”, that led to Philips’outsourcing decision.

In May 2007, after an extensive tenderprocess that included many of theworld’s leading logistics providers,Philips Healthcare chose Kuehne +Nagel to implement and manage thischallenging plan. Over the next tenmonths the Lead Logistics Solutions(LLS) business field and the customerworked together in a proof-of-conceptphase to create the foundation for a suc-cessful Global Control Tower (GCT)deployment by creating harmonisedprocesses, configuring IT systems andmanaging “live” customer-facing improve-ment projects. With the proof-of-conceptphase successfully completed and afterthe calculation of the costs and benefitsof the envisaged collaboration, Kuehne+ Nagel and Philips Healthcare signed afive-year agreement in April 2008 forKuehne + Nagel to manage the GCT forthe Imaging Systems group.

With the preparatory work largely com-pleted, the two companies set about theimplementation of the complex solution.This included a transfer of 19 ImagingSystems employees from Philips Health-care to Kuehne + Nagel. These employ-ees, who provide Kuehne + Nagel withbroad institutional and Philips-specificexperience, are located in Best (Nether-lands), Cleveland (Ohio, USA) and inHamburg (Germany). Peter Haver, the

18 I N S I D E. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


In 2006, after a thorough internalreview, Philips Healthcare made thedecision to outsource the global man-agement and coordination of its Imag-ing Systems’ physical distribution activi-ties to an external logistics provider. Theaim was to allow Philips Healthcare tofocus on its core competencies andenable it to meet its stated supply chaingoals of delivering operational excel-

lence from supplier to end customer,increasing customer satisfaction, improv-ing cost control, enhancing manage-ment reporting and establishing end-to-end visibility.

Medical imaging systems are one ofPhilips’ most important product groupsand generate roughly a third of theeight billion euros which the healthcare



Kuehne + Nagel Global Business Manag-er with responsibility for Philips Health-care, commented: “Obtaining theseemployees was a key factor for us. Whilewe have broad supply chain outsourcingand management experience, we lackedthe product-specific knowledge and thelast mile delivery experience of this veryspecialised industry. The employees thattransferred provide us with many yearsof experience and a great deal of subjectmatter expertise.” This group of transferswas augmented with a flexible labourforce supplied from the Lead LogisticsControl Centres, the centralised andshared operations hubs that support LLSbusiness activity in Asia, Europe andNorth America.

The control tower concept is based onthe complete integration of the systemsof Kuehne + Nagel and Philips Health-care in the field of outbound logistics.This gives Philips Healthcare a “singlesource” for carrier messaging, trackingand communication, while providingKuehne + Nagel with instantaneoussales and purchase order details as soonas they become available. Armed withthe Imaging Systems’ order details,Kuehne + Nagel can focus on efficientplanning, shipment optimisation, modeselection and cost reduction. In addi-tion, having one, integrated systemallows seamless coordination of the dif-ferent Kuehne + Nagel GCT services oflogistics procurement, transport execu-tion, customer service, freight bill auditand payment, KPI / metric reportingand document management.

René Botter, Director of Physical Distri-bution for Philips Healthcare ImagingSystems, sees this integrated operatingenvironment as a key component of theGCT: “Kuehne + Nagel is an expert inthis type of outsourcing activity. Withthe integrated environment we can har-monise the processes, drive efficienciesand create end-to-end shipment visibili-ty. This transparency will provide us with

the management intelligence to contin-uously improve, in conjunction withKuehne + Nagel, our operations.”

In addition to the implementation of theintegrated GCT solution, Kuehne +Nagel is managing a series of valueadding projects that have provided con-siderable cost savings for Philips Health-care. With the challenge of a long andcomplex implementation, Peter Haverrecognises the importance of theseimprovement initiatives: “Managingthese value-adding projects allowsKuehne + Nagel to make a near immedi-ate positive financial impact while weare deploying our integrated solution. Inaddition to creating a more attractivebusiness case, these projects also helpus learn the intricacies of the PhilipsHealthcare business environment priorto the integrated solution being fullydeployed.”

In August of this year the GCT conceptwent live at the first sites, and a full roll-out is planned for to be completed inAugust 2010. Despite the challenges ofthis complex outbound logistics con-cept, Kuehne + Nagel is also exploringthe possibilities of integrated inboundand warehouse solutions for additionalimprovement opportunities. ReinhardSchullerus, Senior Vice President LeadLogistics Solutions of Kuehne + Nagel,looks forward to a productive futurewith such a prestigious customer: “Weare delighted to be working togetherwith Philips Healthcare on this impor-tant programme. I am confident that itwill bring many benefits to both organi-sations and further add value to Philips’operations in the years to come. ThePhilips Healthcare GCT engagement rep-resents a flagship account for LLS: acomplex, global engagement with ablue-chip, industry-leading customer.”

www.kuehne-nagel.com/lls

www.medical.philips.com

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19I N S I D E. . . . . . .

Lead Logistics Solutions is the business

field of Kuehne + Nagel that offers

integrated logistics solutions. With the

end-to-end control of customer supply

chains, regardless of what transport and

service modes are involved, LLS provides

a one-stop-shop solution with centralised

accountability and responsibility for cost,

quality and performance. LLS offers its

services either as an umbrella covering

the operational services of various other

business fields of Kuehne + Nagel or as

a neutral solution, where LLS takes over

key components of customers’ logistics

management. The service portfolio of LLS

covers the entire supply chain as well as

key IT solutions for customers who are

keeping the management function in

house:

• Supplier and Inventory Management

• Distribution and Network Management

• After Market Management and

• Supply Chain Technology Solutions

(KN DSIA)

Lead Logistics Solutions (LLS)

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20

In June, the Chairman of the Board ofDirectors Klaus-Michael Kuehne andOtto Schacht, Vice President GlobalSeafreight of Kuehne + Nagel, (left) paida visit to the CMA CGM shipping compa-ny in Marseille. They were received bythe Board Chairman Jacques R. Saadéand his son Rodolphe Saadé, the GroupChief Executive Vice President Farid T.Salem, the Senior Vice President forEurope-Asia Services Nicolas Sartini,Marketing & Sales Global Accounts Man-ager Claude Lebel (right) and other rep-

resentatives of the top management.Following a presentation of the shippingcompany, the guests inspected its newheadquarters building which is nowunder construction, the imposing, 147-metre-high CMA CGM Tower designed bythe British-Iraqi star architect ZahaHadid. The world’s third largest shippingcompany is one of Kuehne + Nagel’s pre-ferred carriers and last year transportednearly 9 million TEU with a total of 370containerships.

A visit to CMA CGM in Marseille

Stefanie Kettelhodt, a trainee forward-ing and logistics manager with Kuehne+ Nagel in Bremen, beat all her fellowcontestants in Germany’s biggest test ofknowledge for logistics trainees and wonthe coveted distinction of “Best Trainee2008”. The contest, in which more than1,500 trainees take part, is held eachyear by the industry magazine Verkehrs -

rundschau. The third place also went toa Kuehne + Nagel trainee, MatthiasWienke of the Mannheim office – a fur-ther clear testimony to the Company’sstrong commitment to staff develop-ment. In the meantime both winnershave passed their final exams (naturallywith excellent results).

Germany’s best logistics trainees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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21

Qualified, motivated staff with a large potentialThe new Chief Human Resources Officer Lothar A. Haringshas been responsible for managing global human resourcesof the Kuehne + Nagel Group since May 1, 2009. In thisposition he succeeds Klaus-Dieter Pietsch, who retired at theend of May

Mr. Harings, you have now belongedto the Kuehne + Nagel organisationfor just over three months. What areyour first impressions?Kuehne + Nagel has a very individual,firmly anchored corporate culture and aqualified and motivated staff with a largepotential. What has struck me above all isthe entrepreneurial thinking, target-orien-tation and high commitment of the per-sonnel at all levels. For the future too, Iconsider the international outlook of theemployees and their strong identificationwith the Company to be significant fac-tors for the success of Kuehne + Nagel. I know that I have taken the right deci-sion in joining Kuehne + Nagel and lookforward to making a major contributionto our future success.

What priorities have you set for thework of the Human Resources depart -ment?

First and foremost I want the humanresources department to support theimplementation of the business strategyin as diverse and proactive a way as pos-sible. In addition to strengthening ourglobal talent management, this includesproviding our staff with the opportunityto work in all parts of the world, activework in the personnel field to facilitatethe integration of newly acquired firmsand, of course, the provision of first-classday-to-day support in the field of HRservices. I shall continue to focus theorganisation and operation of thehuman resources department upon theneeds of our “internal customers”.

Is the economic crisis changing yourpriorities? Like many other compa-nies, Kuehne + Nagel has also hadto reduce its personnel costs.Every part of the Company must con-tribute to the reduction of costs. Partic-ularly in support and administration,one of the management’s clear targetswas to cut costs by at least ten per cent,a greater amount than in the opera-tional areas and in sales. We shallachieve this objective this year.

On the other hand Kuehne + Nagelintends to substantially strengthenits sales organisation. How is recruit-ment progressing? Our dual strategy in response to the cri-sis – to reduce costs and at the sametime to gain market share by steppingup our sales activities – is the rightapproach. We have so far engaged 200

Before joining Kuehne + Nagel, Lothar A.

Harings (48) held a number of manage-

ment positions with international compa-

nies. In his last position, which he held

for nearly seven years, he was a member of

the management board and Chief Human

Resources Officer with the T-Mobile Inter-

national Group.

Klaus-Michael Kuehne commented as follows

on the appointment of Lothar A. Harings:

“In the service sector the employees occupy

a particularly important position, which

makes highly professional personnel servic-

es all the more necessary. We are therefore

very pleased to have obtained, with Mr.

Harings, a Chief Human Resources Officer

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additional sales staff and are alreadyseeing the first results in the form ofincreased business. At the same time weare analysing the existing sales staff allover the world in order to determinetheir individual training and improve-ment needs and to take appropriatemeasures.

In your opinion, does a “war for tal-ents” exist in the logistics sector?In our recruitment policy we are demand-ing high standards with regard to per-sonality and qualification. In view ofKuehne + Nagel’s excellent reputationin the market, I am confident that wecan win the really good applicants forour Company.

“In the future too, I consider the inter-national outlook of the employees and their strong identification with the Company to be significant factors for success.”

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Managing size XXXLimportsThe transport and customs clearance of the enormous floating platforms that are used for offshore oil and gas production is a project logistics activity par excellence. In Brazil Kuehne + Nagel has provided this integrated service since the year 2000 and established itself in an excellent position in the market

The production of oil and gas in Braziltakes place mainly offshore and is domi-nated by the semi state-owned Petro-bras, a global player among the oil com-panies with an annual turnover of rough-ly 130 billion dollars. The enterprise isone of the technological leaders in thefield of offshore production, and one ofthe world’s largest in terms of its numberof production facilities.

One of the service packages successfullyoffered by Kuehne + Nagel in the oil andgas sector is the logistics managementof the import and start-up preparationsof the giant offshore production andstorage platforms. These so-called FPSO(Floating Production, Storage and Offload-ing) units are leased to Petrobras for anumber of years by their mainly foreignbuilders and operators. An FPSO is in

most cases a former super tanker whichhas been converted and equipped withinstallations to receive crude oil fromseveral sub-sea pipelines, to process itand to be used as floating depots until itis loaded into oil tankers for export orlocal consumption onshore.

The temporary importation of an FPSOinto Brazilian territorial waters for theduration of the contract is a challengingproject assignment which involves manyindividual logistics and organisationalelements. The agencies that must becontacted at an early stage include suchdiverse state organisations as the portand customs authorities, the civil avia-tion office and navy, the federal police,the Brazilian central bank and healthauthorities. These highly complex projectsmust be handled with a maximum ofefficiency – for the leasing costs of a sin-gle FPSO run into hundreds of thousandsof dollars per day.

Kuehne + Nagel’s assignment normallybegins with an inspection of the FPSO’scomponents at the fabrication yards pri-or to its departure for Brazil, to ensure

22. . . . . . .



M A R K E T S & P R O D U C T S


that the installations comply with Brazil-ian import regulations. The pre-inspec-tion, among other things, covers the heli -copter deck which is essential for thetransfer of the crew and supplies.Licensed Kuehne + Nagel experts alsoinspect prescribed safety installationssuch as lifeboats, fire-fighting systemsand emergency plans – and check thecompleteness of the ship’s documentsand manuals and the travel documentsand work permits of the crew. At the endof the pre-inspection the consultantsissue a “punch list” of all items thatneed to be corrected before arrival inBrazil. Finally, Kuehne + Nagel preparesthe inventory of the vessel, which canconsist of up to 17,000 items and isrequired for customs clearance andimport licensing. All items need to beclassified in accordance with the Brazil-ian Customs Tariff Code and the invento-ry must, of course, be translated intoPortuguese.

Before the arrival of an FPSO, the anchorsystem needs to be in place at its operat-ing site. Its components are oftenimported into Brazil by Kuehne + Nagelor brought to their site from onshorelocations and installed in the oilfieldwith the aid of special supply and instal-lation vessels. They consist of heavyitems such as polyester ropes, steelcables, anchor shackles and anchorchains. An anchor chain may weigh upto 2,000 tonnes and a suction pipe canbe 25 metres long, 5 metres in diameterand weigh up to 100 tonnes.

The actual customs inspection in Brazil,which Kuehne + Nagel handles onbehalf of its customers, may take up totwo weeks and includes, among otherthings, the daily transport of personneland officials to and from the FPSO andthe temporary housing of the crew onland. Once all formalities have beencompleted, the operator receives thenecessary import and operating licensesvalid for the duration of the contract

with Petrobras. Only then can the FPSOsail to the oilfield location where it will be anchored.

The Kuehne + Nagel project team has sofar handled the import procedures for atotal of 15 FPSOs and thus made animportant contribution to the excellent

reputation the logistics company nowenjoys among international suppliers forthe oil and gas industry and the world’sleading platform operators and oil com-panies.

www.kuehne-nagel.com/oilandgas

www.petrobras.com

Effective April 1 of this year Kuehne +Nagel acquired J. Martens Holding AS,a company headquartered in Bergen,Norway. By taking over this leadinglogistics provider for the oil and gas sec-tor, the Group has significantly strength-ened its capabilities in this importantindustry segment. Besides providingtransport and logistics services for thepast 125 years in Norway, J. Martenshas set up operations in other key mar-kets such as Singapore, the United King-dom and the Netherlands. With its 260employees, the company achieved aturnover of approximately CHF 250 mil-lion in 2008.

“The acquisition of J. Martens signifi-cantly strengthens our capabilities andposition not only in Norway but also inthe international oil and gas logisticsmarket,” comments Peter Ulber, Execu-tive Vice President Sea & Air Logistics ofKuehne + Nagel International AG. “Itideally fits our strategy to globallyexpand our specialised services for indi-vidual target groups who – like the oiland gas industry – demand a high levelof industry-specific know-how and expe-rience.”

The first fruits of the acquisition werenot long awaited. In July Kuehne +Nagel Norway already concluded a two-

year contract on logistics services to theUSA, Europe and Asia with VizadaVSAT, a leading producer of satellitecommunications systems. This repre-sents an extension of the services whichJ. Martens previously supplied to Viza-da’s subsidiary Marlink. Kuehne +Nagel will additionally be responsiblefor the management of a number ofVizada’s consolidation centres andwarehouses in the Netherlands, Califor-nia and Dubai, the air and sea transportof the products and their delivery to theend customers. In many cases these areships which are located in port andawaiting new satellite communicationsinstruments.

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Kuehne + Nagel strengthens its oil and gas capabilities



tion, production and distribution makethe management of global supplychains an increasingly challenging task.The economic crisis has led to increasedcost pressure. As a result, companiesattach an even higher priority to the

Visibility as a success factor in logisticsWith the latest version of its Internet-based information management system KN Login, Kuehne + Nagel is again setting the benchmark for the industry. The high-performancewebsite provides clear access to all important data relating to a freight shipment, automated process monitoring andpowerful tools for data integration, statistics and reporting.The modules of the system can be combined, allowing it to be easily adapted to the individual needs of a specific customer or industry

reduction of inventory by shorteninglead times in order to reduce tied-upcapital costs.

This development is accompanied by agrowing need for maximum supplychain visibility on the part of industrialand trading companies. Without aseamless overview of the process, theycannot be certain whether productionsupplies have arrived on time or theirshipments have been punctually deliv-ered. End-to-end visibility, real-time con-trol of order books and stocks, shippingdocuments and delivery status are nowa critical requirement.

Kuehne + Nagel is one of the pioneersof Internet-based tracking and tracingand order management solutions. Asone of the first logistics providers to

Trade and industry expect logisticsservices to meet ever higher standardsof efficiency, flexibility and reliability.Increasingly complex and more finelybranched supply chains and ever morefrequent changes in procurement loca-


25M A R K E T S & P R O D U C T S. . . . . . .

offer its customers appropriate tools,Kuehne + Nagel has received a numberof awards for its achievements. Sinceintroducing the first version of KN Loginat the end of the 1990s, the Companyhas consistently and successfully exploit-ed the potential of Internet technology.With the worldwide introduction of thelatest version, completed at the end of2008, Kuehne + Nagel again set thebenchmark for the industry in terms ofefficiency, speed, user-friendliness andadaptability of the software.

Round the clock, KN Login offers its cus-tomers and business partners all overthe world a uniform and detailedoverview of all information relating tothe location and status of their goods inthe supply chain. Data from the Kuehne+ Nagel operational system for sea, air,land transport and the contract logisticsfield is linked via interfaces to KNLogin, allowing continuous monitoringof the shipments, orders and articles viathe Internet. The documents belongingto each shipment can be viewed elec-tronically and easily shared if required.

All participants in the supply chain orprocurement process can be linked viaKN Login, which greatly simplifies col-laboration in the logistics process.

As a result of the clear visibility andinteraction with the customer’s supplychain in KN Login, the system is simpleto handle for all users. For instance, cus-tomers can access all important orderand shipment data according to variouscriteria, using their own references suchas order, product, and invoice numbersor shipment references. Individual userscan be given access rights based ontheir area of responsibility. If required,data interchange with the customer’soperational system can easily be set up.

Many customers also take advantage ofthe possibility of using KN Login toautomatically monitor their supply andlogistics processes. When importantprocess steps are reached, or in theevent of potential or actual service dis-ruptions, the appropriate persons areautomatically informed by e-mail, whicheliminates the need to continuously

monitor the progress of individual ship-ments or products. This shortens theresponse time of the customers, facili-tates decision making in the event ofdisruptions, and prevents complaintsand costs related to the delayed receiptof information and products.

KN Login also includes powerful andeasy-to-use functions for the creation ofstatistics and analyses. These reportingtools offer a wide range of possibleapplications for monitoring, perform-ance measurement and continuous opti-misation of complex logistics solutions.KN Login provides customers with aquick overview of their consignments,shipments and orders in the variousprocesses including upcoming shipmentdepartures and arrivals.

The modules of the information man-agement system can be combined andare activated according to the needs ofthe individual customer or user. Thismakes KN Login into a precisely-tailoredsolution that can be extended at anytime and provides customers with awide range of possibilities for optimis-ing their supply chains.

In addition to the basic KN Login mod-ules for order and shipment monitoring,Kuehne + Nagel also offers special solu-tions to cover the requirements of spe-cific branches of trade and industry. Forinstance, a growing number of cus-tomers entrust Kuehne + Nagel withmonitoring their suppliers with regardto production and order fulfilment sta-tus. This order management process,which often takes place many monthsbefore the actual shipment, has an enor-mous influence on the reliability of thesupply chain. Configured to customer-specific requirements, KN Login sup-ports these monitoring activities with ahigh degree of efficiency.

www.kuehne-nagel.com/knlogin


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With 36 sales outlets and aworkforce of 1,200 Virgin Mega-store is one of France’s leadingchains of entertainment and

lifestyle stores. Under a comprehensive plan to cen-tralise and increase the efficiency of its order and inven-tory management and logistics processes, in June thecompany concluded a five-year contract with Kuehne +Nagel for the management of its central warehouse anddistribution to the megastores all over the country. Intotal, Virgin Megastore will invest some 30 millioneuros in this plan to optimise its supply chain and cen-tralise over 60 per cent of its product flows.

As the exclusive logistics partner of Virgin Megastore,on approximately 8,000 sqm of its distribution centre inBondoufle to the south of Paris, Kuehne + Nagel willmanage warehousing and handling of 30,000 stock-keeping units from goods categories such as gift pack-ages, DVDs, video games, consoles, electronics and mer-chandising products. Books and music are the only prod-uct ranges that will continue to be replenished by thestores.

Virgin Megastore expects the partnership with Kuehne +Nagel to bring marked efficiency improvements in ware-housing and distribution, synergies in data capture, andbetter tracking and tracing capabilities – in other wordsprocess improvements that will benefit its own stores, itscommercial offering and ultimately also the customers.

www.virginmegastore.fr

Award-winning Stock’n’Roll

26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

M A R K E T S & P R O D U C T S

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Virgin Megastore streamlines its logistics

The international logistics team of theworld-famous restaurant and hotel chainHard Rock International honoured theKuehne + Nagel distribution centre in

Louisville (Kentucky, USA) in July with its inaugural Rockin’ &Stockin’ Award. The quarterly award – an electric guitar embla-zoned with the Hard Rock and Kuehne + Nagel logos – will bepresented to the distribution centre with the highest overall per-formance and will now travel between the five Kuehne + Nageldistribution centres, depending on which staff wins for the quarter.

Tony Paladino, Hard Rock’s Director of Logistics and Distribu-tion, said, “The Louisville team has set the bar for dedication andexcellence. Its vendor compliance program success is off thescale and the staff continuously looks for ways to improve oper-ating procedures.”

The group, which was founded in 1970, now operates 152 estab-lishments in 52 countries, including 126 of the famous HardRock Cafes and a number of hotels and casinos. With 70,000items, the company has the world’s biggest collection of musicalmemorabilia (such as instruments, stage costumes, gold recordsand historical original photos of musicians and show stars),which hang in its bars, cafes and restaurants.

In 2004 Hard Rock International outsourced distribution ofmusic-related products, collectibles and fashion merchandise toKuehne + Nagel. The logistics provider now handles more than200,000 individual items and 36,000 packages daily in its dis-tribution centres for Hard Rock.

www.hardrock.com

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27M A R K E T S & P R O D U C T S. . . . . . .

cept: with every pair purchased, TOMSgives a pair of new shoes to a child inneed – one for one. Based on a sustain-able, self-supporting business plan,TOMS is able to achieve this aim with-out relying on charity.

For the worldwide transport of its prod-ucts, both in actual sales and in the dis-tribution of the donated shoes, TOMSShoes relies on Kuehne + Nagel. “Withits global network which also works wellin developing countries, Kuehne +Nagel helps us to handle our growingtransportation volume in an efficientmanner,” says Jonathan Jung, TOMSShoes Vice President Operations. “Thelogistics provider develops new trans-portation channels, whereas otherproviders offer a limited and expensivesolution.”

KN Login, Kuehne + Nagel’s Internet-based information and managementsystem (see article on page 24), is agreat help in enabling TOMS Shoes torealise their full potential. “Kuehne +Nagel’s online portal has helped mapout schedules for products arriving in aneasy way with high visibility into eachstep of the process for freight and cus-toms,” Jung continued. “Their handlingof the new U.S. Import ISF requirementshas also been very helpful and easy touse.”

Since the start in 2006, TOMS Shoes hasalready given over 150,000 pairs of newshoes to children in countries such asArgentina, South Africa, Ethiopia andeven the United States. With the project-ed number of 300,000 additional pairsin 2009, Kuehne + Nagel will become avital part of their “one for one” philoso-phy. “As a Kuehne + Nagel representa-tive, being a part of TOMS Shoes givesme a sense of significance, knowing ourservice can help children in underdevel-oped areas improve their chances for abetter life,” says Dennis Wong, AccountExecutive for TOMS Shoes at Kuehne +Nagel in Los Angeles.

www.tomsshoes.com

Food, clean water,shelter, medical careand education areonly a few of thebasic needs that

come to mind when one thinks about achild living in a developing country.Good shoes are hardly at the top of thelist, because one easily forgets that chil-dren in many of these countries oftenhave to walk long distances to meet thechallenges of everyday life. Barefoot,this is even more difficult and in someplaces even impossible.

Shoes make the children’s way easierand protect them from injuries, infec-tions and parasites, the main cause ofdisease in many parts of the world. Inaddition, many children cannot attendschool barefoot because shoes are arequired part of their uniform. Manypeople may take shoes for granted, butmore than half the world’s populationlives in conditions where they are only aluxury item.

When Blake Mycoskie, an American,was travelling in Argentina three yearsago, he came across a group of school-children without shoes and resolved tochange this situation. In Santa Monica,California, he established the firm ofTOMS Shoes, which distributes shoesaccording to a clear philanthropic con-

Shoes for a better chance in life

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According to a simple “one for one” principle, for every pair of shoes sold, the Californian TOMS Shoes company gives a pair of new shoes to a child in need somewhere around the world. Kuehne + Nagel ensures that the footwear gets to its various destinations

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At this year’s presentation of the Asian Freight & SupplyChain Awards in Hong Kong, Kuehne + Nagel was distin-guished with the prize for the “Best Logistics Provider Project Cargo 2009”.

The awards conferred by the influential industry publica-tion Cargonews Asia are among the most coveted in theFar Eastern logistics sector. Its readers selected Kuehne +Nagel for having repeatedly demonstrated its innovationand flexibility in project management – as, for instance, it recently did in Vietnam.

Kuehne + Nagel’s well established network of brancheswith project specialists all over the Asia-Pacific region andin the rest of the world analyses risk and liability questionsfor its customers and advises them on matters relating to legal requirements, local rules and issues relating to customs and insurance. On the basis of its many years ofproject experience, the logistics provider offers successfulmarket solutions that combine efficiency, quality and reliability. Another factor for success is the standardised ITplatform which provides Kuehne + Nagel and its customerswith a web-based worldwide communication system in realtime.

www.cargonewsasia.com/afsca

New logistics centre for Audi Volkswagen KoreaAudi Volkswagen recently entered into a strategic partner-ship with Kuehne + Nagel for its warehouse managementand parts distribution in Korea. In April, the two companieslaid the foundation stone for a new warehouse close to theport of Incheon. The modern, purpose-built facility, whichalready went into operation in September 2009, is locatednorth-west of Seoul and 40 kilometres south of IncheonInternational Airport. The location was chosen because of its ease of access and excellent infrastructure. The logisticscentre provides 4,500 sqm of dedicated warehouse space for 20,000 stock-keeping units of Audi Volkswagen and hasexpansion possibilities for a further 2,000 sqm.

Under a three-year service contract, Kuehne + Nagel will be handling Audi Volkswagen spare parts for the Koreanafter-sales market, performing a range of activities includingreceiving, picking and packing, handling of dangerous goods and distribution to Audi Volkswagen dealers through-out the country. A key factor for the award of the contract to Kuehne + Nagel was its commitment to constructing abrand-new state-of-the-art logistics centre in Korea.

Joerg Bull, Managing Director Hong Kong,

receives the prestigious award

“Best project logistics provider in Asia”

28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

R O U N D T H E WO R L D

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and transported to the loading site. Acareful survey of the infrastructure atthe destination showed that with itsdimensions of 35 x 4.5 x 4.5 meters thecargo was simply too large to be carriedthrough the busy, narrow streets ofVietnam’s biggest city.

Faced with this situation, the inventiveKuehne + Nagel project team decidedto transport the tank to its final destina-tion via the Saigon River. After clearingcustoms in a record time of only oneday, the tank was loaded onto two turn-tables fixed on a multi-axle hydraulictrailer on a barge which then carried itup the river. A temporary jetty wasquickly constructed, fences which stoodin the way were removed and the cargowas brought to land. Finally, the tankwas transported to the job site underpolice escort, so as to avoid any interfer-ence from other traffic on the road.

Thanks to this outstanding logistics per-formance by all concerned, the gas tankwas delivered to the Saigon Hi-TechPark five days before the deadline. Thecustomer was delighted with this out-come.

www.kuehne-nagel.com/projects

www.airliquide.com

Last November, Kuehne + Nagel’s projecttransport team in Vietnam had the taskof delivering an urgent consignment inthe heavy category. The Vietnamesesubsidiary of Air Liquide, the world’sleaders in industrial and medical gasesand related services, chose the companyto transport an oversized gas tankweighing 105 tonnes from Tianjin inChina to Ho Chi Minh City as quickly aspossible.

Whereas shipment from the port ofTianjin to Vietnam presented no majorproblems for the world’s number one inseafreight forwarding, the tricky partlay in the on-carriage of the tank fromthe docks in Ho Chi Minh City to thefinal project site at Saigon Hi-TechPark. As a first obstacle, the gas tankwas too heavy for the shore crane atTianjin Port to load, so that a 700-tonne floating crane had to be hired

Heavy lift express in Vietnam

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29. . . . . . .


Graco Inc., one of the world’s leaders in fluid handlingsystems and components, has awarded Kuehne + Nagel anew five-year contract for integrated logistics services for its Australian operations. Kuehne + Nagel is responsible forproviding comprehensive services to support Graco’s entireproduct portfolio of around 2,600 items to move, measure,control, dispense and spray a wide range of fluids andviscous materials used in lubrication, commercial, andindustrial and construction. These services include inter-national transport by sea and air, import customs clearance,storage, inventory management and distribution to Graco’scustomers throughout Australia.

In addition, Kuehne + Nagel is rendering a series of value-added services including labelling, reverse logistics andrepacking. All warehouse processes are supported byKuehne + Nagel’s state-of-the-art information and ware-house management systems such as KN Login (see article on page 24) to guarantee complete visibility along Graco’s supply chain on a real-time basis.

www.graco.com

In September the Italian fashion compa-ny Benetton chose Kuehne + Nagel toprovide integrated logistics services for

its expanding domestic retail opera-tions in Russia. The comprehensive serv-ice offered by Kuehne + Nagel to one of

the world’s premier manufacturers ofcasual clothing, footwear and acces-sories ranges from forwarding of mer-chandise to Russia by road and air,import customs clearance, storage andorder deliveries to the Italian brand’smore than 150 shops throughout thecountry. In addition Kuehne + Nagel isresponsible for the provision of a seriesof value-added services.

“As one of the leading fashion retailers,we require a capable logistics providerwith industry know-how and experiencein Russia,” said Valter De Santis, GlobalHead of Logistics for the Benettongroup. “Kuehne + Nagel has proveditself to be our trusted partner for ongo-ing growth in this important country.”

www.benetton.com

Logistics solutions for Graco in Australia…

30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

R O U N D T H E WO R L D

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… and for Benetton in Russia

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31R O U N D T H E WO R L D. . . . . . .

The packing experts of Cargopack, a wholly-owned subsidiary ofKuehne + Nagel, succeeded in doing the impossible on anurgent “special mission” in Costa Rica at the beginning of theyear. One of the world’s leading suppliers to the automobileindustry had entrusted Kuehne + Nagel with the task of trans-porting a large production plant with a total volume of 250 seacrates back to Germany from the Central American country. Aspecial challenge was the packing of the plant, which had to becompleted within six weeks to the highest quality standards –and this with only ten days’ prior notice in a country with nopacking industry or corresponding infrastructure of its own. Cargo -pack, a specialist in packing for the worldwide transport of com-plete plants, was the only provider from North America andEurope who was prepared to take on this Herculean job.

So in mid-January eight of its experts from Germany set off forCosta Rica equipped with all the packing material and equip-ment they needed – such as wooden crate parts, transport floors,anti-corrosion products, screws, tools, an electric generator and acompressor. On site they had to work to a tight time scheduleand under clean-room conditions, conforming to the customer’sspecific packaging requirements and closely monitoring externalinfluences such as moisture, unwanted light exposure and tem-perature variations. By their outstanding efforts, the Cargopackexperts completed the job within the narrow time window andsafely handed over the sensitive plant to their colleagues fromKuehne + Nagel, who then handled its shipment to Hamburgand its overland transport through Germany. It arrived punctuallyand in perfect condition at its destination in Nuremberg and thecustomer was fully satisfied with the complete service that hadbeen provided.

www.cargopack.de

Packing artists do the impossible

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.

As part of a new distribution strategy of the carmaker BMW, since May 2009 Kuehne + Nagel hasoperated a modern distribution centre in Gaertringenfor the company’s dealer network in the Stuttgartarea.

The BMW dealers in this city region were formerlysupplied with parts and accessories by a simpleovernight service from the distribution centres inStrasbourg and Dingolfingen. In addition, the newDealer Metropolitan Distribution Centre now enablesup to four additional deliveries per day to be madein the Stuttgart area and one daily delivery to moredistant locations. The DMDC concept allows BMW to further increase the efficiency of its supply serviceand supports dealers to expand their trade in spareparts with independent repair shops.

Kuehne + Nagel’s multi-user facility in Gaertringen isan ideal base for these operations. Under the six-yearlogistics contract, Kuehne + Nagel manages a logis-tics warehouse for BMW with an area of 3,200 sqmand capacity for roughly 15,000 stock-keeping units.There is scope for an expansion of the facility to6,000 sqm. In addition to inventory managementusing BMW’s own stock control system, the servicesprovided under the contract include the control ofthe goods receipt process, the handling of cross-dockorders, and the order picking, packing and supply of BMW parts and accessories.

www.bmw.de

Car spares logistics for Stuttgart area


32 P E O P L E & N E W S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


The success of logistics depends on peopleSince 2008 the Kuehne Foundation has financed the Chair of Logistics Management at the Swiss Federal Institute ofTechnology Zurich (ETH). Its head, Prof. Dr. Stephan M. Wagner,believes that modern logistics professionals must permanentlydeepen and renew their knowledge in order to master thegrowing challenges of this dynamic industry

Prof. Dr. Stephan M. WagnerBefore taking over the Chair of Logistics Management at the Swiss Federal Institute of

Technology Zurich (ETH), Stephan M. Wagner (39) was on the staff of the WHU – Otto

Beisheim School of Management. Prior to that, he worked for ten years in private industry

as head of supply chain management in a Swiss technology company and as senior manager

for a leading international business consultancy. He has an MBA from Washington State

University, a doctorate and a habilitation degree from the University of St. Gallen, and is

author of ten books and countless articles on subjects such as supply chain management,

procurement and supplier management, innovation in the supply chain and the manage-

ment of logistics providers. His latest book Managing Risk and Security – The Safeguard of

Long-Term Success for Logistics Service Providers – has just been published.

Professor Wagner, you are the headof an institute at the universitywhere Albert Einstein once taught.Is modern logistics as complicatedas the theory of relativity?When I present the ETH Zurich, I like tomention the pioneering scientist who

held a professorship of theoreticalphysics there from 1912 to 1914. The rel-ativity theory is concerned with thestructure of space and time. In logisticstoo, space and time are important fac-tors for the achievement of customer sat-isfaction. But in addition to the global

geographical coverage and reliabledelivery which customers expect, therange of services and costs also play adecisive role. If we look at modern logis-tics networks and logistics services,these are undoubtedly very complex.Their organisation and optimisationrequire scientific methods and practicalexperience in equal measure.

Are the leading universities now suf-ficiently active in the provision oflogistics training? How importantare private sponsorships such asthat of the Kuehne Foundation?The success of logistics ultimately dependson the people who design and imple-ment it. In this connection the staff inlogistics companies must constantlydeepen and renew their professionalknowledge. A number of universities nowprovide a good basic training in logisticsand related subjects. But when it comesto the training of managers, the field ismuch narrower. Here, privately-operatedand supported further training schemescan make a valuable contribution.

When the economy is going througha difficult period, many companiesshow a greater interest in outsourc-ing their supply chain. What are thecrucial factors for the success ofsuch strategies?We now see companies resorting to bothoutsourcing and insourcing. The aim ofoutsourcing is to reduce costs, whileinsourcing is intended to make greateruse of free capacity within the organisa-tion and thus avoid staff cuts. As is sooften the case, the success of suchstrategies depends on a well thought-out plan and its consistent implementa-tion.

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Who sets the trends in today’slogistics: shippers, logistics providersor politics?Before the crisis I would have said theshippers set both tone and tempo.They adopted a bolder approach to theoutsourcing of logistics services andwere willing to adopt new pathways.However, new and innovative solutionshave always developed at the interfacebetween the service provider and ship-per. The political sphere undoubtedlywields a great deal of power, createsnew operational conditions and inter-venes in a regulatory manner. Here weneed think only of the reduction ofvehicle CO2 emissions.

What are the most important devel-opments that will affect the trans-port and logistics industry in thenext five years?As in the past, in the next five years weshall see both big and small changes.Telematics, for instance, still has anenormous potential for achieving costreductions, lowering pollutant emis-

sions and securing supply chains.Companies will take a more criticalview of the globalisation of their distri-bution and value creation activities,and will no longer pursue globalisa-tion “at any price”. And the crisis –however long it continues – willchange the competitive landscape.Some companies will emerge strongerfrom it and will be able to take advan-tage of new market opportunities,while others will disappear from thescene.

How will the global logistics mar-ket look after the end of the pres-ent economic crisis?I think there will be a shakeout. Partic-ularly in contract logistics, the survivalof a logistics provider will be decidedby its financial strength. When thewaves of the crisis have subsided,everyone will probably be setting theirsights somewhat lower.

www.scm.ethz.ch

www.kuehne-stiftung.org

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The numerous shareholders who travelled to Schindellegi to attend this year’s Annual General Meeting of Kuehne + Nagel International AGwere able to enjoy a very special agenda item after the conclusion of the meeting. This was a performance of Mozart’s Magic Flute staged by theCo-Opera Company from Australia, for which the audience showed itsappreciation with generous applause.Since 1990 this group of 24 actors and singers has travelled all over theAustralian continent to bring operaticart to remote places that are far fromcity opera houses and concert halls.This notable artistic engagement hasreceived substantial support from theKuehne Foundation. On its first Euro-pean tour, with its easily transportableorchestra reduced to a piano, a stringquartet and a wind quintet togetherwith a collapsible stage set, the troupe performed for a total of two days asguests in the “Swiss outback”.

Magic Flute from down under



34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

P E O P L E & N E W S

The project is named after its initiator,Christine Kuehne, member of the founda-tion’s board of trustees and wife of itsdonor Prof. Dr. h.c. Klaus-Michael Kuehne,who comments as follows on the engage-ment: “Now that allergies affect one childin four and generate costs to the econo-my in excess of 100 billion euros, allergic

diseases must no longer be trivialised. Byour sponsorship of the research network,we should like to bring a cure for thesediseases a large step nearer.”

On the initiative of Christine Kuehne,with the support of the foundation anadvisory unit for neurodermatitis patients

was already established in 2004 at theChildren’s Hospital of the Zurich Universi-ty Clinics. In the space of four years thishas already gained a good reputation asa centre for allergy research. CK-CARE,the further development of this project, isthe second largest scheme ever to besponsored by the Kuehne Foundationafter the Kuehne School in Hamburg, andso far the most important in Switzerland.It can rightly claim to be the world’slargest privately-sponsored institute forallergy research.

In the research network supported by CK-CARE, over the next five years professorsfrom the fields of allergology, immunolo-gy, dermatology, paediatrics and basicmedical research will be active in fourlocations: in the High Altitude Clinic andthe Swiss Institute for Allergy and Asth-ma Research (SIAF) in Davos, the ZurichChildren’s Hospital and the TechnicalUniversity Munich.

According to Prof. Heidrun Behrendt,spokeswoman of CK-CARE, the support

Kuehne Foundation supports interdisciplinary centre for allergy researchIn the presence of prominent guests from the fields of medi-cine, research, education and politics, the Christine Kuehne-Centre for Allergy Research and Education (CK-CARE) hasbeen ceremonially opened in Davos, Switzerland. The aim ofthe project, which will receive support totalling 20 millionSwiss francs from the Kuehne Foundation over the next fiveyears, is to bring about a substantial improvement inresearch, treatment and prevention in the field of allergy

Joining forces for allergy research (from the left): PD Dr. med. Roger Lauener, Prof. Dr. med. Cezmi Akdis, Karl Gernandt (member of the

CK-CARE board of directors), Christine und Klaus-Michael Kuehne, Prof. Dr. med. Heidrun Behrendt, Prof. Dr. med. Dr. phil. Johannes Ring

and Dr. Joerg Draeger (chairman of the CK-CARE board of directors)


35P E O P L E & N E W S. . . . . . .

For both logistics and literature, creativity and variety are essen-tial factors. It is this common feature that motivated the Klaus-Michael Kuehne Foundation, together with the cultural authori-ty of the city of Hamburg, to create the Harbour Front LiteratureFestival. The aim of the project is to hold a major internationalbook festival annually in the Hanseatic city. From September 9to 19, some 90 German and international authors presentedthemselves to an interested audience in various locationsagainst the background of the port.

One of the venues was the German head office of Kuehne +Nagel in the HafenCity, where Klaus-Michael Kuehne was ableto welcome his former schoolmate, the well-known German poetand singer-songwriter Wolf Biermann, at a reading of his work.Three other events on the festival programme took place at thesame location: a lecture by Dr. Sabine Schulz on the subject “Dis-aster relief logistics – 8 years after 9/11” and a discussion withthe documentary author Dr. Birte Graefing entitled “The changeof labour in the ports – from the billhook to the container” mod-erated by the journalist Dr. Reimer Eilers, who also presentedextracts from his own book Das neue Tor zur Welt – 40 JahreContainer (“The new gateway to the world – 40 years of the con-tainer”). Finally, a press discussion on the subject “What is thecommon future of China and Germany?” brought the authorsand China experts Lars Amenda, Petra Haering, Yu Chien Kuanand Juergen Bertram as well as the moderator Hans-HermannKlare together at the discussion table.

The Klaus-Michael Kuehne Foundation was established in Ham-burg in 2008 as a complement to the Swiss Kuehne Foundation.It focuses its support on the fields of art, culture and the preser-vation of monuments and historical buildings, science, researchand vocational training in Germany. The Harbour Front Litera-ture Festival is the first major project it has sponsored.

Opening of Harbour Front Literature Festival

Former schoolmates meet at the festival opening: main supporter

Klaus-Michael Kuehne and singer-songwriter Wolf Biermann

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given by the Kuehne Foundation “enablesa dream to come true. For the first time,prominent scientists from various fields ofallergy research will combine their capac-ities, strengths and results and placethem at the disposal of other scientistsand affected persons. Only such a unionprovides a sound basis for excellentresearch and can initiate the urgentlyneeded optimisation of training and further training in the field of allergy atmedical schools.”

Education and further training is the sec-ond core activity of CK-CARE, with theaim of making the latest knowledge

about allergies and their prevention avail-able to a broader public and helping tobridge the gap, which is still too wide,between theoretical progress and practi-cal possibilities. New research findingswill immediately be made available todoctors treating the relevant conditionsas well as to students and affected per-sons. The organisation will not only prop-agate facts, scientific method and a cul-ture of thinking, but above all will alsopromote understanding for the needs of allergy sufferers and other affected persons.

www.ck-care.ch


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