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English [pdf | 3 MB]
bdv_connect_1_e.qxp 21.4.2006 8:23 Uhr Seite 1 The Panalpina magazine 1_2006 connect Panalpina’s logistics solutions for the telecommunications sector bdv_connect_2-3_e.qxp 21.4.2006 8:23 Uhr Seite 2 Page 4 Telecommunications Page 10 Oil and Gas Page 14 Supply chain management Page 20 HSE Page 24 Worldwide Page 31 Publishing details 2 connect 1_2006 Innovative, mobile, customer-focused Panalpina offers much more than just forwarding. The logistics company is a network operator managing global goods flows as an integral part of complex supply chains. Modern telecommunications play a central role here, since the information flow is crucial. Panalpina does not simply make use of telecommunications, however – it also delivers a very wide range of services to the telecoms sector. Overseas: Small but full of energy! Panalpina has taken over the Norwegian company Overseas Shipping Group. The integration of its long-standing agent for the nordic market enables Panalpina further to reinforce its leading global position in supply chain management for the oil and gas industry. A close team The transport logistics services delivered by Panalpina as lead logistics provider to the globally active Swiss technology group Bühler. Safety first! Panalpina’s commitment to Health, Safety & Environment (HSE) bdv_connect_2-3_e.qxp 21.4.2006 8:23 Uhr Seite 3 Dear Readers We shall look back on 2005 as a particularly successful and exciting year. Having celebrated our 50th anniversary as a group in 2004, we began a very successful new chapter in the history of the company on 22 September 2005: going public! The flotation of 57.36% of the registered shares met with exceptional interest on the part of investors. The timing of the IPO was perfect, and the investors recognized that Panalpina is correctly positioned for profitable growth. However, 2005 was not just the year of the flotation. At the press conference held on 17 March 2006, we were able to announce another doubledigit percentage rise in the Group results. Both gross and net revenues rose by over 10%, while Group profit increased by more than 20%. These pleasing results are almost entirely attributable to organic growth. They reflect the positive business trend in the forwarding and logistics sector and also amply demonstrate the wisdom of our “asset-light” strategy and our focus on core industries. Several articles on these matters are to be found in this magazine. On pages 4 to 9 we take a look at the breakneck speed of change in the telecommunications sector, where developments show some similarities to those in the forwarding industry. Pages 14 to 19 consider the secrets of success of the long-term partnership between Panalpina and the globally active Swiss company Bühler AG. We then go on to introduce you to the Norwegian company Overseas Shipping Group. This firm, an acknowledged specialist in the oil and gas business, was one of our exclusive partners for many years before being acquired by the Panalpina Group recently. Finally, pages 20 to 23 explain the efforts we are making in the area of Health, Safety and Environment (HSE). Gerhard Fischer Chairman of the Board of Directors connect 1_2006 3 bdv_connect_4-9_e.qxp 21.4.2006 8:24 Uhr Seite 1 Retail & Fashion Telecommunications Innovative, mobile, customer-focused 4 connect 1_2006 bdv_connect_4-9_e.qxp 21.4.2006 8:24 Uhr Seite 2 What do the telecommunications and logistics sectors have in common? On the one hand, modern businesses and the globalized economy are greatly dependent on the rapid development of the telecoms sector, while on the other, goods flows around the world enable the system to > function smoothly. But those are not the only similarities. connect 1_2006 5 bdv_connect_4-9_e.qxp 21.4.2006 8:24 Uhr Seite 3 Telecommunications Retail & Fashion By Martin Spohn If you compare Panalpina’s current “Communications Directory” – the blue groupwide address list – with older editions, it's clear that there have been changes regarding how key individuals are contacted. Mobile phone numbers are now indispensable – in many cases people do not even try to reach the person on their land line first. Just as e-mails can now be read nearly anywhere in the globe, mobile calls can be received the world over – in Kazakhstan, Nigeria, Brazil, China, Canada or Italy, whether the person you are talking to is in an airport departure lounge, motorway service station, conference room or on a building site! A communications company has to be mobile, and decision-makers in the logistics business can’t stay in the office the whole time. They have to be wherever the customers need them, whenever they need them. Different time zones are no excuse these days – goods flows move too fast for that. The impact this has on the logistics business was amply demonstrated recently during a visit to Baku (Azerbaijan). British Petroleum is installing an offshore platform at a big site there, complete with equipment and support structures (see article on pages 6 connect 1_2006 20 to 23 of this magazine). All the staff were in constant contact with one another, both during the site visit and while travelling, so they were able to solve problems quickly, answer any questions that came up, and arrange meetings as necessary. The mutual exchange of information did not always operate so smoothly. It is hard to imagine how people used to get their work done without mobile phones or global e-mail systems. Those times were not that long ago, though, when you consider the breathtaking speed of change. The mobile communications sector met in Barcelona recently for the 3GSM World Congress (GSM stands for Global System for Mobile Communication and represents some 80% of the global mobile communications business; the “3” refers to the third-generation GSM standard). Over 50,000 people attended, whereas the first such event in 1991 attracted only a few dozen participants. Now, in 2006, the GSM system connects about 1.69 billion people, and according to Jorma Ollila, head of Nokia, global sales of mobile handsets reached 795 million in 2005. If the suppliers have their way, this number will go up sharply over the next few years. No logistics without telecommunications Forwarding has always relied on efficient communications. In the past, this was limited largely to the flow of information between sender, forwarding agent, customs authorities and recipient, but now a whole range of parties are involved. Today, Panalpina offers much more than just forwarding. It would be more accurate to call us a network operator that manages global goods flows as an integral part of complex supply chains. Our job is to coordinate production and delivery deadlines with numerous suppliers, and ensure prompt delivery to assembly lines and sales outlets. Tasks include managing global supply chain processes and setting up reliable distribution systems. However, our work also involves designing tailored solutions, optimizing or reducing interfaces, organizing global goods flows, and offering supplementary services. None of these tasks could be carried out properly without modern telecommunications. Of course, the logistics sector has undergone huge changes recently, particularly because of the trend towards outsourcing and global sourcing – which in turn have been made possible only because of the rapid development of bdv_connect_4-9_e.qxp 21.4.2006 8:24 Uhr Seite 4 electronic means of communication such as the Internet! Shipment data and forwarding times used to be communicated by letter, and then by telegram and telex, but nowadays electronic systems can transmit information, pictures and sound round the world in seconds. Who could have imagined this at the beginning of the last century, when wireless telegraphy was just being introduced for shipping, superseding flags, signal masts and lanterns as the main means of communication on the high seas? And who doesn't remember the famous photo of the radio room on the Titanic? At the beginning of 1999 the era of wireless telegraphy for marine communications came to end with the introduction of the new global maritime distress and safety system (GMDSS). Panalpina: always at the cutting edge Panapina has always been aware of the importance of top quality communications for its business, and has been a trendsetter in this sector, too. “IT and communications, the vital nervous system of the haulage industry, saw early and intensive development at Panalpina,” as the book published in 2004 to celebrate Panalpina’s anniversary puts it, going on to say: “In 1970, an IBM system was installed at the holding company's Basel headquarters that had previously been located at Finatra AG, the corporation's main controlling centre. The move made it possible to provide analysis services to overseas affiliates. An electronic data processing department was established around the same time. In 1976 — again long before the bulk of the industry — Panalpina opened a communications centre in Zurich with two goals: securing internal communications through a special arrangement with the PTT satellite station at Leuk* and providing a supplemental communication channel for Panalpina's customers” (*PTT was the Swiss state post office and telecommunications company; Leuk is a village in the Alps). However, Panalpina did not simply use telecommunications to help it in its own business: it soon began to offer these services to other companies in the sector. One of many examples is the satellite station mentioned above, which Panalpina brought over to Switzerland from Japan. Panalpina’s subsidiaries in Canada and New York worked with Panalpina Airfreight to provide freight forwarding services for the second American moon landing in November 1969, shipping a directional beam aerial facility from various production sites in Canada and the United States to Guam within a tight time-frame. This was a first-class supply chain management project, even if it was not yet described as such at the time. The telecommunications industry manufactures high-value products and invests huge sums in developing new technologies. Companies in this sector place high demands on themselves, and their customers expect nothing less than the most up-to-date, innovative and – ideally – cheapest products. That’s why these companies depend on service providers in the logistics sector who can fully satisfy their requirements, and whose organizational > connect 1_2006 7 bdv_connect_4-9_e.qxp 21.4.2006 8:24 Uhr Seite 5 Telecommunications research company Gartner. And figures from the Global mobile Suppliers Association (GSA) show that over 31 million new GSM contracts are taken out each month, equivalent to about 1 million per day! GSA reports that the markets are growing fastest in Africa, Latin America and Asia, which proves that it is by no means the prerogative of the major industrialized nations to benefit from the development of telecommunications technology. In reality quite the opposite is true, since the new products are giving people in poorer or rural areas opportunities that would have been unthinkable only a few years ago. structure meets their need for fast, reliable, global forwarding solutions. Global network and inside knowledge Panalpina is one such logistics provider, and its customers include all the big names in the sector, whether equipment manufacturers or network operators. The company has positioned itself accordingly, and follows a clear strategy that focuses on the core activities of air and ocean freight, together with the associated supply chain management solutions. At the same time, Panalpina concentrates on defined core industries. The telecommunications sector is one of these, as part of the hi-tech segment. Here, Panalpina benefits from its many years of experience, and from the in-depth knowledge of the industry which enables its experts to design tailored solutions with real added value for its customers. The whole structure is underpinned by a comprehensive key account management system. Organizing itself in this way means that Panalpina is in a position to gain a thorough understanding of the connections between the customer’s business and all the other parties involved, and to know how the industry really works. After all, if you want to be of help to your customers, you need to relate to how the sector actually operates! More than just making phone calls! Just as logistics providers have continually expanded the services they offer, telecommunications, too, is now far more than a matter of just making phone calls. The developments of the past few years have brought about social changes that benefit people in their private as well as their working environments. This has brought the economy new sources of income, as information could be passed on faster and with more transparency. 8 connect 1_2006 The enormous speed of technological change in fixed line and mobile telephony, and the new generations of portable phones with more and more functions, offer considerable growth potential to suppliers as well as network operators. New consumer demand is being created through opportunities to do things like transmit photos by phone, arrange appointments using online diaries, send e-mails, and gain wireless Internet access, not to mention using mobiles as games consoles, televisions or MP3 players. Providers are rushing to meet this demand. The same goes for the ability to talk on the phone, watch TV and work on the computer all at the same time on one network, thanks to broadband Internet access. VoIP (Voice over Internet Protocol) – or telephoning over the Internet – is gaining ground both in the industrialized nations and in many emerging markets. In the USA, the number of VoIP users has been predicted to grow from 4 million to 17 million over the next few years. There is obviously huge potential in China, too – a country whose size means that communications are a vital necessity. (It is hardly surprising that mobile telephony has taken off in China so quickly, and not just in the major urban areas.) VoIP calls in China are forecast to rise to 210 billion minutes by 2007, bringing in revenue of over CHF 8 billion. In 2004, fixed line longdistance calls grew by 26.3% in China, while mobile long-distance calls went up 11.4% and those on VoIP rose 39%. A truly global business Here are a few more impressive figures from the world of telecommunications: in 2005, nearly 817 million mobile phones were sold throughout the world – up by a good 20% on the previous year, according to the market Award for outstanding service from US customer A global corporation like Panalpina is at home everywhere in the world, and as such, it is the obvious partner of choice for telecoms companies. On the trade route between Hong Kong and North America Panalpina cooperates with the telecoms company Adtran, which last year presented it with an award for “Outstanding Service Provider 2005”. Adtran is a leading manufacturer of telecommunications devices, and produces numerous products ranging from digital transmission equipment to Internet security applications, via network routers. This award marks the customer's recognition of Panalpina’s outstanding service when forwarding goods between Hong Kong and Huntsville/AL. The two companies are to expand their cooperation even further. Support in Nigeria … Panalpina helped set up a telecommunications network in Nigeria that enables thousands of people to gain access to mobile and fixed line telephony. The network was commissioned by the Nigerian network operator Globacom Ltd., in cooperation with telecoms experts from a number of different countries. Siemens, a world-leading provider of network technology, was one of the companies involved in the project. Panalpina has been cooperating with Siemens for many years. For this contract, Panalpina set up a special department in Europe to deal with the delivery of equipment to Nigeria. Frank Hofmann, Global Key Account Manager for Siemens, believes that individual customer service is essential. “The ever more exacting demands confronting us necessitate a bdv_connect_4-9_e.qxp 21.4.2006 8:24 Uhr Seite 6 proactive stance on product development.”He is convinced that the only way to define and achieve targets is through a clear and open dialogue with the client. "Longstanding partnerships and the resulting familiarity with clients’ products and requirements, backed up by the utmost flexibility, are pivotal to our clients’ success. And, ultimately, that's all that counts." … and China Panalpina has had a presence in China since 1976 and today it has over 20 offices there, offering the full range of services based on extensive expertise in complex logistics tasks. It is therefore no coincidence that a major customer should entrust an important contract to Panalpina. The service portfolio was indeed very varied. For instance, Panalpina analyzed the supply chain and drew up optimization proposals, used its EDI tools to ensure transparency in the chain, and handled the management of returns and substitute deliveries. It also consolidated and cleared products through customs, delivered to factories and project sites and organized the provisioning of the necessary products at the suppliers. Comprehensive range of services Panalpina offers the full spectrum of services to the telecoms industry, including all aspects of global forwarding and logistics. They range from LCL and FCL ocean freight shipments, airfreight services including chartering aircraft, customs clearance, inventory control and purchase order management, right through to warehousing and a large number of added-value services. The latter are mainly offered for particular contracts individually. Quite often, Panalpina employees are “implanted” at the customer’s premises, where they work on site on an exclusive basis. As a provider with over 30 years’ experience, Panalpina has a thorough knowledge of the industry, and it has its own presence in all the strategically-important markets in the sector. Its centralized capacity management system means that Panalpina is able to call on additional capacity in peak periods. This is an important factor, particularly when importers and retailers have to be supplied with new products. The fact that it has its own projects division also makes Panalpina a preferred partner for network operators, as they are able to call on Panalpina’s expertise when expanding in remote areas with poor infrastructure. In such cases, Panalpina’s experts work in locally-based project teams, inspecting the terrain at the construction sites and handling the “last mile” and delivery of the components needed. The high value of the products concerned means that great emphasis is placed on security during forwarding and storage. Panalpina has implemented a rigorous security programme, which includes certifying the facilities and ensuring that staff receive appropriate training. connect 1_2006 9 bdv_connect_10-13_e.qxp 21.4.2006 8:25 Uhr Seite 1 Oil and gas Overseas: small but full of energy Oslo-based Overseas Shipping Group is now part of Panalpina, the global transport and logistics group. The take-over of the Norwegian oil and gas industry specialist was effected retroactively per 1st January 2005. As Overseas has been a long-time exclusive partner of Panalpina, the transformation is set to go smoothly. 10 connect 1_2006 bdv_connect_10-13_e.qxp 21.4.2006 8:25 Uhr Seite 2 By Rolf Sulser “Our cooperation with Panalpina has grown year-by-year; we became their sole agent and they were our exclusive partner,” explains Tore Ruud, former co-owner and Managing Director of Overseas Shipping. Tore Ruud can be described as an impeccable Norwegian gentleman, tall, relaxed and measured, yet surprisingly spontaneous in his personal views. Asked about the characteristics of Overseas Shipping, he does not hesitate for a second: “We are an asset-free company. We have our desks, our PCs, our IT and connecting systems – and basta!” The company’s biggest capital asset was the 20 years-plus experience of its key members of staff, Tore Ruud emphasizes. “We know our business. This is why we do not have problems in buying, leasing, renting etc. the services and equipment necessary to provide a top service quality.” With this philosophy, Overseas is very close to Panalpina. Moving with the times Overseas’ main activity is in the oil and gas industry, where it achieves more than 70% of its revenues. This was not always the case. The company was founded in June 1976 by a German named Holst Meissner who had moved to Norway with his family. He developed his enterprise into one of the biggest liner agents in Norway. Tore Ruud celebrates 30 years with Overseas this year. “I have been together with Meissner for 20 years as a member of the board, without actually working for the company,» he explains. “Ten years ago, my partners and I took over Overseas.” At that time, the shipping agents' trade was undergoing a fundamental change. Shipping lines replaced agents by opening offices of their own in places they deemed important. Elsewhere, they started to change their agents. “For our company, forwarding and especially project forwarding seemed to offer a safer option” says Tore Ruud. Apparently he made the right choice. During his ten years at the helm of the company, the number of employees increased from four to forty. Annual revenues soared from NOK 8 > connect 1_2006 11 bdv_connect_10-13_e.qxp 21.4.2006 8:25 Uhr Seite 3 Oil and gas million to NOK 200 million, and Overseas was consistently profitable. “Overseas today is one of the biggest mid-sized forwarders in Norway,» he adds “We have concentrated on Oil &Gas projects, focusing on the upstream part of the business, i.e. exploration and drilling. At the beginning, the big orders were for offshore oil rigs in Nigeria, e.g. for the Wilrig company. We were already co-operating with Panalpina at that time.” Oil & Gas heavyweight Overseas was, and still is, moving every conceivable kind of equipment connected with the oil & gas industry. “We are working very closely with Houston-headquartered FMC Engineering, for example,” explains Tore Ruud. FMC is one of the giants in this industry. To meet the requirements of this demanding customer, Overseas operates a special office near FMC’s Kongsberg base in the vicinity of Oslo. “We take care of their forwarding and transportation needs including imports, exports and documentation. We are closely working together with Panalpina,” Tore Ruud explains. Within the Aker Kvaerner Group, Overseas Shipping has an implant. This office within the Egersund shipyard is directed by Thor Høiland. “We are actually working on their computers,” he says illustrating the degree of consolidation. “We take care of 12 connect 1_2006 Tore Ruud, Managing Director of Overseas Shipping. their transportation needs, of customs procedures and documentation, and we just started doing their invoicing for the material they send to subcontractors all over Europe.” Aker Kvaerner is the Norwegian market leader in engineering and construction services for the oil & gas industry. It was closely involved in the development of the North Sea oil fields for which it built entire platforms and loading buoys. At present, it supplies a lot of subsea valve and pipeline systems connecting outlying wells to a central platform. The replacement of obsolete platform parts with new modules containing equipment and accommodation is another, increasing business sector. Aker Kvaerner's specialisation means that much of its shipments are large, i.e. oversize or heavy. “We often go to the supplier and the place of destination to verify measurements, weights and accessibility,” explains Thor Høiland. Overseas then works out a number of proposals featuring different routings, including procurement of equipment for transportation and transhipment as well as the necessary local expertise. “Local” in such cases may denote the stormy Barents Sea, the shallow Caspian Sea or a Polish welding yard. The aim of all these efforts is of course to offer Aker Kvaerner the best possible choice of options, thus providing it with a competitive advantage. “This is not new to us, but being part of Panalpina is opening up additional resources for us,” Thor Høiland affirms. An increased choice of resources of course translates into increased options for the customer. Naturally, 99% of Overseas’ business at Egersund is with Aker Kvaerner. Nevertheless, Thor Høiland emphasizes his strive for diversification. “But we offer our expertise in the transportation of heavy and oversized equipment on the market and to any potential customer.” At present, the biggest challenge both for Tore Ruud and Thor Høiland is the multinational Kashagan project (see separate box) in which Aker Kvaerner is taking part. bdv_connect_10-13_e.qxp 21.4.2006 8:25 Uhr Diversifications and synergies … Diversification is a keyword for Tore Ruud, too. “Together with Panalpina, we can both expand our traditional forwarding segment and add more weight in our speciality, the oil & gas business.” he says. Panalpina was not well-known for general cargo in Norway, Tore Ruud maintains. This is no longer the case as Overseas Shipping just changed its name to Panalpina AS, contributing as its dowry its strong local market presence. In return, Overseas will expand its range of services by making use of Panalpina's worldwide network. “As a mid-sized company with 40 employees we do not have the means to serve everyone with everything, or take part in each and every tender. That’s the dilemma of a mid-sized forwarder,” Tore Ruud explains. “Being part of a bigger group will change this, allowing us to boost our revenues from traditional forwarding beyond the present 30%.” There is another important aspect which is foremost in his mind. He is aware of his direct responsibility for over 100 people, employees and their relatives put together. “When Panalpina proposed, we knew we should accept it. To be part of a big group is both good for us and our employees, and for the group. And I think it makes a difference to be a Panalpina company rather than just an agent of theirs.” Seite 4 And what about his personal plans? “I shall stay on board for the foreseeable time, as ‘country’ manager Norway”, Tore Ruud replies, thoughtfully adding a personal observation: “You know, I am 63, and at that age you do not meet same-age customers any more. Everybody is younger, and you do not have the same ideas, interests and background as they have.” This is why he wants to bring younger people into the company who have ideas of their own and are willing to work hard to make them a reality. … and their dangers In a takeover, there is always a possibility that the new owners impose their business model and procedures to the detriment of employee motivation. Tore Ruud dismisses this danger outright: “We have been partners with Panalpina long enough to know, and appreciate, their way of doing business. I am sure that they will not interfere as long as we deliver. And in the past, as I said, we have always delivered.” This positive attitude is obviously shared by the employees, many of which confirmed in private that they see the take-over as a chance rather than a threat. “We are very close to Panalpina in Sweden,” Tore Ruud adds. “Their mentality is close to ours; we have a similar way of life and doing business. What is working well in Sweden will also work in Norway, I am sure.” Egersund Egersund is situated at Norway’s southern west coast some 75 km south of Stavanger. It is connected to Stavanger and Oslo by a railway line, and to Denmark (Hanstholm/Jutland) by a daily ferry service. In the past, the city used to be an important centre for fish processing and pottery. Today, 550 of its around 10,500 inhabitants work for Aker Kvaerner. About a quarter of the population is directly or indirectly dependent on this company. connect 1_2006 13 bdv_connect_14-19_e.qxp 21.4.2006 8:25 Uhr Seite 1 SCM At the heart of Bühler’s transport logistics in Uzwil (Switzerland): the loading hall. 14 connect 1_2006 bdv_connect_14-19_e.qxp 21.4.2006 8:26 Uhr Seite 2 Rudolf Münger, Head of Distribution, Bühler AG (left) and Rolf von Allmen, Head of Logistics & Supply Chain Management, Panalpina Regional Center Europe & AIMEC. A close team 2003 saw the globally active technology group Bühler put its worldspanning transport logistics up for tender. Having clinched the contract with an attractive submission, Panalpina has now assumed the role of lead logistics provider for the group. > connect 1_2006 15 bdv_connect_14-19_e.qxp 21.4.2006 8:26 Uhr Seite 3 SCM Roller mill stands are vital components of the mills produced by Bühler. By Michèle Thüring The key finding from a survey conducted by Bühler in 2003 into its transport logistics was that the technology group, headquartered in Uzwil (Switzerland), was at that time collaborating with a full 220 forwarding and logistics agents across the globe. This prompted Bühler to revamp its global logistics strategy through the appointment of a lead logistics provider (LLP) to handle both the production plant and spare parts business of the group. Three objectives were paramount: first, the new partner had to Markus Stieger, Head of Logistics Services, Bühler. 16 connect 1_2006 coordinate all Bühler shipments worldwide (procurement, inter-factory and distribution logistics). Bühler’s second priority was to find a partner with a global logistics infrastructure which it could tap into. The third goal, specifically targeted by the LLP concept, was process optimization, i.e. a general shortening of transit times for deliveries, coupled with a speeding up of overall processes and palpable quality gains. With Bühler footing an annual CHF 50–80 million freight forwarding bill, the three-pronged strategy was generally designed to cut costs. The boldness of the project and the demands it would place on both Bühler and its new logistics partner were clear from the very outset. To forge a strong identity for the Bühler and Panalpina team in the face of the challenges ahead, Markus Stieger, Logistics Services Manager at Bühler, christened the project “Magellan” in memory of the Portuguese seafarer Ferdinand Magellan, who in the 16th century became the first man to circumnavigate the globe. As the name signalled, it was to be a major undertaking over a long period. Indeed, the cultivation of a long-term partnership was the Bühler logistics team's avowed priority. Panalpina scoops lead logistics provider contract The close business association between Bühler and Panalpina Switzerland, stretching back over decades, made Panalpina a natural candidate for the LLP contract in 2003, and Panalpina’s attractive tender ultimately secured the deal. As to what tipped the balance in Panalpina’s favour, Bühler’s Distribution Manager Rudolf Münger can reel off a host of convincing arguments: “Our many years of collaboration with Panalpina gave us first-hand insights into the group’s performance and quality standards. We recognized Panalpina’s in-depth experience in project and plant shipments, and were bdv_connect_14-19_e.qxp 21.4.2006 8:26 Uhr acquainted with its world-spanning transport logistics network underpinned by local subsidiaries.” The heavy focus of many of the other tenderers on a particular niche meant that they were unable to offer the integral package required by Bühler. As Münger sums up: “It soon became clear that our partner of choice for the wide-ranging global transport logistics needs of our plant and spare parts business would be none other than Panalpina.” And Stieger adds: “Given that we needed a logistics partner that is familiar with the ins and outs of our business, the prime consideration was an understanding of and responsiveness to our requirements, rather than price. The first question we asked all tenderers was how they proposed to tackle transport logistics for us. And Panalpina’s response was immediately convincing.” As Rolf von Allmen, Panalpina’s Magellan Project Manager, recalls: “We made it clear that we had much more to offer than a global network plus associated expertise – namely the ability, Seite 4 gained through experience, to fine-tune our services to Bühler’s specific transport logistics needs.” As no transport logistics operation involving 220 companies can be reconfigured into a one-to-one arrangement overnight, the two partners agreed to implement a pilot scheme between January and June 2004. All processes and costs were analysed and investigations performed on routes already handled by Panalpina. The findings served as the basis for the cooperation agreement and subsequent phased rollout. Components from all corners of the earth Bühler’s main plants are located in Europe (Uzwil, Madrid and Brunswick), India (Bangalore) and China (Wuxi and Shenzhen). The technology group’s six logistics platforms serve Europe, Latin America, North America, southern Africa, China and Southeast Asia. The first three platforms have so far adopted the LLP concept, with the rest due to follow suit by the end of 2006. Panalpina will then take charge of Bühler’s entire forwarding logistics chain at global level. A full complement of logistics services will be provided: Panalpina will handle Bühler’s airfreight, seafreight and project consignments, while also overseeing local shipments, customs clearance etc. Moreover, as LLP, Panalpina will procure, manage and coordinate numerous forwarding services provided by jointly selected subcontractors. Freight flows will encompass procured goods deliveries, inter-factory transfer and distribution. The focus will therefore be on the efficient channelling of supplier consignments to Bühler sites, goods movements between Bühler subsidiaries, and machine deliveries from Bühler’s factories to its customers. A typical process could involve the handling of an order for a 2000cubic-metre milling system weighing 500–600 tonnes. The installation’s > The Bühler technology group manufactures pasta-making equipment. connect 1_2006 17 bdv_connect_14-19_e.qxp 21.4.2006 8:26 Uhr Seite 5 SCM Bühler has its own on-site container terminal at Uzwil (Switzerland), for optimum transfer from road to rail and efficient loading/unloading of 20’ and 40’ containers. main components (e.g. roller mill stands) are built in Uzwil, with further parts supplied by the factories in Brunswick and/or Madrid. Additional deliveries from Bühler’s suppliers may be routed to Uzwil, directly to a predetermined consolidation point (e.g. north European port) or straight to Bühler’s customer. Panalpina superintends the consolidation of the individual consignments and arranges sea shipment and oncarriage of the complete facility to the customer’s premises. The management of spare parts logistics is a further focus. Bühler’s central spare parts warehouse is located in Uzwil, with smaller warehouses at the regional distribution centres of the six worldwide platforms. Over the next two years, the Magellan team will press ahead with a general streamlining of the spare parts logistics processes that will include a restructuring of the spare parts management regime and of the supply service to the regional distribution centres. Pivotal role of IT Significant headway has been made with the transport logistics scheme. The whole team is satisfied with the achievements to date and is confident that the rollout will be completed on schedule by the end of 2006. Looking to the challenges ahead, Magellan Project Manager Stieger singles out three key factors: transparency, flexibility and interconnectivity, i.e. the integration of sys- 18 connect 1_2006 tems. “Speed, economy and reliability are the watchwords of our transport logistics,” is Münger’s verdict, though he hastens to add: “And IT holds the key to the scheme’s success.” What makes the project so fascinating in von Allmen’s view is the dynamic nature of the market, the complexity of the business and Bühler’s innovative spirit, all of which consistently throw up fresh problems. “To see ourselves navigating calm waters in two years’ time would be an illusion: as logistics providers, we must be always on the alert to address new challenges.” When the LLP concept reaches fruition in late 2006, the three gentlemen will certainly not be twiddling their thumbs, but will be chiselling away at new strategies to optimize and refine the logistics operation. Anyone who has spoken to Markus Stieger, Rudolf Münger and Rolf von Allmen is struck by their mutual understanding, their instinct for acting concertedly towards a common goal. This is, quite obviously, a close team – three men who can safely steer the ship through any waters, whether calm or stormy. Through regular visits to the national subsidiaries and presentations on their transport logistics philosophy, the trio have enthusiastically furthered their cause and won the wholehearted support of all involved in the Magellan project. Bühler AG Bühler AG is a multinational technology group, whose origins date back to 1860. Bühler supplies its clients in the food, animal feed, chemical process engineering and die casting industries with customized plant, machinery and process technology. The Swiss company is global market leader in the food, chemical process engineering and die casting sectors. The group is split into three business areas: the Grain Processing Division produces systems for milling, animal feed manufacture, malting, malt crushing, rice processing and silo storage. This business area also includes colour sorting machines. The Engineered Products Division develops production plant for foodstuffs such as cocoa, chocolate and pasta and for coating materials. The third division produces various types of die casting equipment. The approx. 6,100-strong global workforce achieved sales of CHF 1.5 bn in 2005. bdv_connect_14-19_e.qxp 21.4.2006 8:26 Uhr Seite 6 Assembly shop for die casting equipment at the Bühler plant in Uzwil (Switzerland). connect 1_2006 19 bdv_connect_20-23_e.qxp 21.4.2006 8:26 Uhr Seite 1 HSE Safety First! Health, Safety and Environment – HSE for short – has become an essential aspect of everyday business. Panalpina is strongly committed to meeting customers’ needs, thereby achieving a competitive advantage. By Martin Spohn Anyone stepping into the entrance hall of the branch in Baku/Azerbaijan notices immediately that HSE (Health, Safety and Environment) is no empty promise at Panalpina. Safety notices and behaviour rules are displayed at every turn. The steps are fitted with non-slip material, mirrors in the stairwell ensure that people do not bump into each other and “BP’s Golden Rules of Safety” are conspicuously displayed on the wall. On every floor there are people trained 20 connect 1_2006 in first aid and firefighting. In the event of an emergency, all the employees know exactly what to do. Drills take place regularly to ensure that this remains so. All these things are not just for show but form an integral part of daily business and the company culture. “All employees have attended an HSE training workshop and were tested individually,” explains Afgan Mustafayev, HSE Manager Central Asia. “People understand that HSE forms an important part of their jobs.” This involves not only adherence to elementary security regulations but also issues such as economical use and eco-friendly disposal of office materials such as paper and batteries. Economically sound investments Panalpina has obtained ISO 14001 and OH 18000 certification and is willing to spend a considerable amount on its principles. “In Central Asia we invest around USD 600,000 bdv_connect_20-23_e.qxp 21.4.2006 8:26 Uhr in HSE every year,” Mario Kropf, Managing Director of Panalpina Central Asia, emphasizes. However, it would be wrong to view this area just as a cost factor. Instead, a consistent HSE policy offers tremendous possibilities that can be tapped into. “Our policy has also generated value for the company,”he explains. “If we run our business in an ecologically and ethically correct way, we are also contributing towards our country’s development.” Furthermore, it makes economic sense: a lot of money can be saved by using resources sparingly and absences relating to accidents and sickness are greatly reduced. Working economically and without accidents also results in greater efficiency and therefore higher productivity, adds Lynsey MacIver, Head of Corporate HSE at the Basel headquarters, stressing: “We are also determined to provide our employees with a safe working environment.” Murad Housseinov, Business Unit Manager in Baku, agrees. It would be wrong and negligent to save on HSE, he emphasizes. “Furthermore, the customers – particularly Panalpina Azerbaijan's main customer, British Petroleum (BP) – expect nothing less than consistent adherence to all of its regulations.” Even the office building was restructured and equipped according to BP regulations. “We upgraded the buildings and Seite 2 vehicles ourselves. For example, we installed special safety equipment on the trucks for the truck drivers and in the buildings we installed emergency exits, fire escapes, fire extinguishers, etc.” Panalpina pursues a clear “asset-light” strategy worldwide and therefore does not have much tied-up capital or infrastructures of its own. This means that the company is exceptionally flexible and can offer its services wherever the customer requires them. However, it also means that in many areas the company works with subcontractors. Adherence to the high quality standards is ensured by applying the “best-in-class” system, thanks to which Panalpina always works with the best suppliers. Particularly in the HSE segment, this is an important issue. All subcontractors must meet the standards of Panalpina which bears full responsibility towards its customers. Close cooperation with subcontractors How does Panalpina ensure the proper conduct of its partners? “We test them meticulously and also provide them with a lot of support,” explains Lynsey MacIver. “We produce a comprehensive questionnaire, check whether the specifications given are implemented in practice, and observe and evalu- ate the services. If we identify any deficiencies, we help our partners to iron them out. This is what our customers expect of us,” the Head of Corporate HSE tells us. Afgan Mustafayev agrees: “It is important to us to support the subcontractors both with training and financially, thereby improving the overall HSE situation. Once we even equipped partners in the Siberian port of Nakhodka with safety equipment.” Customer-orientated approach “HSE at Panalpina is clearly customer-orientated. We don't want to write fat tomes on theory and miss customers’ needs. It is important to know customers’ requirements and set ourselves up accordingly,” Lynsey says emphatically. At present, it is still the customers in the oil and gas industry who have the highest HSE standards. However, she has also noticed companies in other segments scrutinizing their HSE policies and looking for new solutions. She advises these companies and is sometimes invited to give talks or presentations on the subject. “Attitudes towards HSE have clearly changed in the last few years. Companies are obviously handling the issue proactively and not settling for half-measures. This certainly has something to do with the fact that complex supply chains involve more parties than > connect 1_2006 21 bdv_connect_20-23_e.qxp 21.4.2006 8:27 Uhr Seite 3 HSE Mario Kropf, Managing Director of Panalpina Central Asia. Mike McCormack of British Petroleum. Murad Housseinov, Business Unit Manager at Panalpina Baku. BP’s “Golden Rules of Safety” at Panalpina Baku. Lynsey MacIver, Head of Corporate HSE at the Basel head office. Afgan Mustafayev, HSE Manager for Central Asia. before. Any company guaranteeing high standards to its customers demands the same from its suppliers, these suppliers demand it from their partners, and so on.” Lynsey has many years of experience, for she completed her HSE training in Scotland after graduating in Chemistry and working for an oil & gas company in Aberdeen. “I enjoy the positive attitude towards HSE that I experience at Panalpina. In other companies we often encounter resistance, but not at Panalpina where there is a lot of enthusiasm and cooperation. Among other things, I would attribute this to the company's customer-orientated approach. The people can see the benefits and greater customer satisfaction in their own areas.” BP’s requirements will not do business with them at all or will lose the business. In terms of security, health and environmental protection, BP pursues a clear zero-tolerance policy and always integrates HSE as a fixed part of its calls for tenders. The value placed on it is correspondingly high: in the call for tenders for the large Shah Deniz project in Azerbaijan, for example, HSE had a weighting of almost 30 percent, considerably more than the price of the transport services. Shah Deniz is a massive gas condensate field in the Caspian Sea, around 100 kilometres south of Baku, the capital of Azerbaijan. In this multi-level project, BP is in charge of developing the deposits and extracting the raw material. On a large site near Baku, the British company erected the offshore platform with all the components required for installation and anchoring, including three bases each weighing 1,500 tonnes. Right from the start, Panalpina was a reliable partner in this project. It supported BP in all logistical matters – including ensuring that the individual parts were consistently deliv- ered when required – and transported over 35,000 tonnes of goods by air and sea freight, inland shipping, truck and train from several countries to the site in Baku. A team of four Panalpina employees also worked onsite as “implants” at BP. Panalpina also runs a reloading and storage yard which has, among other things, a covered building for interim storage. This yard corresponds to the strictest HSE standards. We are able to see this for ourselves during a visit. Once we have identified ourselves, we march to the main building where we are supplied with helmets, protective goggles, gloves and safety shoes. Whenever goods are being transported on the site or other procedures are taking place, anyone outside the administration building must wear this protective gear. The storage building itself is, of course, equipped with fire extinguishers, etc. BP in Baku: HSE as a success factor The pace is still defined by energy companies, as shown by the example of BP in Azerbaijan. For this company, a good HSE organization is not just a "nice to have" – quite the contrary: any company that does not fulfil 22 connect 1_2006 Zero tolerance Regulations are even more strict on the actual job site where the platform from bdv_connect_20-23_e.qxp 21.4.2006 8:27 Uhr which gas will be pumped from the Caspian Sea in summer 2006 is being erected under the direction of British Petroleum. We enter the reception building through a sort of lock gate. Of course we have an appointment and present our identification papers at the entrance. Our escort is already expecting us: throughout our entire visit to the site we cannot move anywhere without an escort – that is an absolute rule. To ensure that we know why, we are first shown a 15-minute video informing us about the dangers, rules and regulations and then sign a form confirming that we have understood the issues at hand. We are relieved that we only have to complete the short programme. This is because we are permitted to visit the site, but not the platform itself. If we wanted to go there, we would require four hours of training! Once our baggage has been checked – a small video camera, photographic equipment and our bags containing the protective gear provided by Panalpina Baku, we enter the office complex to put on the overalls, security shoes, protective goggles, helmet and gloves. We are greeted by Mike McCormack, Project Procurement Logistics Manager, and once more informed of the most important rules of conduct. Mike who, as manager of the entire logistics operation for this Panalpina project, is the most important contact on site, speaks with a quiet but firm voice. “Health, safety and environment are very, very important to us and that is why we are continuously pushing forward in this area. Naturally, we require the same from our logistics suppliers, which is why we define the requirements right from the time of calling for tenders and thereby clearly communicate that anyone wanting to do business with BP must meet high standards.” Understanding the meaning of HSE We therefore assume that Panalpina, as the leading logistics supplier at the Shah Deniz project, has met these requirements. Mike McCormack confirms this and adds that strict adherence to the requirements is checked. "We expect a company like Panalpina to understand how important HSE is to BP, and to be able to relate to this. In this instance, tolerance would be completely misplaced." We can see that BP leads by setting a good example: on the entire building site, full protective clothing must be worn at all times, except within a Seite 4 clearly defined, fenced-off corridor in which the sanitary facilities are also located. We spot a letterbox in which employees can post suggestions for improvement and also report incorrect conduct. “The intention is never to tattle on colleagues but solely to avoid accidents. And this is what we have in fact achieved: for over 500 days nobody has had an accident serious enough to take a day off work. We can be proud of that,” stresses Mike McCormack. His helmet has five stars on it. Each star stands for exceptional achievements in the area of HSE. Anyone who has earned the five stars, however, cannot rest on their laurels or be negligent, because misconduct is punished by removal of one or more of these badges. HSE at Panalpina HSE (Health, Safety and Environment) is taken very seriously by Panalpina, largely because of Panalpina’s leading role as a transportation and logistics provider to the oil and gas industry. The global and strategic responsibility is centrally controlled by Corporate HSE, a staff unit reporting to the Chief Operating Officer. The Head of Corporate HSE is Lynsey MacIver from Scotland. After graduating in Chemistry, she completed a variety of HSE courses and worked in this segment in oil and gas companies in Aberdeen. She moved to Panalpina in 2004. Corporate HSE produces all the handbooks, develops the training programmes and provides the necessary tools to local organizations. It also defines the obligatory HSE programmes, determines the standards and organizes internal and external audits. Panalpina concentrates on a variety of programmes, each of which come under the scope of either health, safety or environment: – Health Control – Safe Transport – Personal Protective equipment – Training for work with dangerous goods or in a potentially dangerous environment – Emergency Response scenarios – Sustainable transport solutions (Eco-Transport) – Sustainable use of resources and materials (eco-consumption) One of the pillars of Panalpina’s HSE strategy is the certification of local organizations according to ISO 14001 (environment) and OHSAS 18001 (health and safety). These certificates are often already required by customers at the time of tendering for business. In the course of the certification process, all employees at all levels of the units checked are tested individually. In 2005, organizations in Central West Africa, the CIS, Scandinavia and Central Asia were certified and in 2006, branches in northern and southern parts of West Africa, the United Kingdom and Ireland, and the Middle East and South East Asia will be certified. Furthermore, Panalpina is involved in the HSE initiatives as part of the Freight Forward International (FFI) interest grouping in Brussels. connect 1_2006 23 bdv_connect_24-32_e.qxp 21.4.2006 8:27 Uhr Seite 1 Worldwide Gerhard Fischer, Chairman of Panalpina, and Raj Siriram celebrate the opening of the new facility. Partnership with Siemens in southern Africa South Africa September 2005 marked the opening of a new logistics centre at Johannesburg International Airport by Panalpina’s South African agent Safcor Panalpina. Developed in collaboration with Safcor Panalpina’s client Siemens Southern Africa, the facility provides 10,000 sq m logistics space and 1,700 sq m office accommodation. Siemens will occupy 60% of the floor area in the new logistics hall, while the remaining 40% will be used by Hewlett-Packard and some of Safcor Panalpina's other high-tech clients. For Safcor Panalpina, the new logistics centre represents a gigantic leap forward. “Despite the rampant growth in airfreight volumes here over the past 20 years, time had stood still at Johannesburg International Airport in terms of freight handling methods and facilities,” Safcor Panalpina Chairman Philip Womersley remembers. “The fact that we can now shift uncleared cargo directly to our logistics centre shortens movement distances, while significantly tightening up our handling operations," he adds. "Consignments can now be seamlessly processed and immediate preparations made for delivery.” Safcor Panalpina’s new facility has thus paved the way for an unbeatably professional, efficient and reliable management of the entire logistics operation in southern Africa. The current trend among multinational clients is to outsource their complex supply chain systems to logistics companies in order to focus on their core business. With its new hub at Johannesburg International Airport, Safcor Panalpina has provided the perfect enhancement to the Panalpina Group's comprehensive logistics offerings. Safcor Panalpina has for many years partnered the southern 24 connect 1_2006 African subsidiary of Siemens AG, the electronics giant based in Berlin and Munich (Germany). Founded over 150 years ago and active in 190 countries, Siemens ranks among the world's largest, most time-honoured electronics and electrotechnology companies. The Siemens Group operates in the fields of information and communications, automation and control, power, transportation, medical solutions and lighting. Siemens’s presence in southern Africa stretches back more than 105 years. As Womersley emphasizes: “This joint venture is a prime illustration of the kind of methods we adopt in dovetailing our services to the specific needs of key accounts such as Siemens.” Safcor Panalpina provides Siemens Southern Africa with an all-round logistics package that includes goods receipt, quality control, warehousing, order picking at the warehouse for consignments to Siemens clients, dispatch preparation, delivery to Siemens customers, stocktaking and returned goods processing. At the centre’s inauguration, Divisional Managing Director of Siemens L&A Raj Siriram pointed out that Siemens was breaking new ground in southern Africa by outsourcing its logistics to Safcor Panalpina. He regarded the collaboration between Siemens and Safcor Panalpina as a genuine partnership entailing enormous investments on both sides. Siemens had also supplied the technology for the logistics centre. The development scheme for the logistics centre plus office accommodation was initiated by Safcor Panalpina’s parent company, Bidvest, in association with its business partner Airports Company of South Africa (ACSA), and implemented by Safcor Panalpina and Siemens Southern Africa. bdv_connect_24-32_e.qxp 21.4.2006 8:27 Uhr Seite 2 From left to right: Philip Womersley, Raj Siriram and Gerhard Fischer. connect 1_2006 25 bdv_connect_24-32_e.qxp 21.4.2006 8:28 Uhr Seite 3 Worldwide www.panalpina.com/heliship Canada Panalpina has added a new section to its website: www.panalpina.com/heliship. It will be run by Panalpina Helicopter Shipping Division in Vancouver (Canada), which is responsible for all services connected with the transport of helicopters. Panalpina’s helicopter transport specialists have over 30 years of experience in this sector. They are therefore fully conversant with the requirements of their customers in the helicopter industry. In partnership with the global Panalpina network, the Panalpina Helicopter Shipping Division transports helicopters, spare parts and components to any destination by sea or air. The division covers the whole range of Panalpina services: meticulous route planning, transit insurance, moving the consignment by road to the airport or port, supervising loading, seeing to the necessary customs formalities, unloading and final delivery to the customer. Palletized helicopters Brazil/Luxembourg/Canada During a freak windstorm in Macae (Brazil), several helicopters supporting the Brazilian oil and gas industry were blown over and damaged. AcroHelipro Global Services, a customer of Panalpina Vancouver's Helicopter Shipping Division, obtained the contract to repair two of the Sikorsky S76 helicopters, which were loaded onto airline pallets in Rio, then 26 connect 1_2006 trucked by Panalpina Rio to Viracopos. Next, a Boeing 747-400 freighter operated by Cargolux flew the helicopters via Luxembourg to Seattle, where Panalpina Vancouver had a truck waiting to deliver them safely to the repair facility. As usual, the key to success was meticulous planning, backed up by excellent teamwork from all the Panalpina offices involved. bdv_connect_24-32_e.qxp 21.4.2006 8:28 Uhr Seite 4 A helicopter in the hold Singapore/Canada Panalpina Vancouver’s Helicopter Shipping Division collaborated with Panalpina Singapore to transport an S61N civilian helicopter by ship from Singapore to Vancouver (Canada) for delivery to Heli-One, a subsidiary of CHC Helicopters International. The helicopter, which measures 16.0 m x 3.0 m x 4.5 m, flew from Thailand to the Seletar military air base in Singapore. Panalpina was responsible for coordinating this challenging assignment: for instance, it brought in a 20-ton crane to dismantle the rotor blade. As well as selecting a suitable carrier for this unconventional cargo, Panalpina saw to the customs formalities. The actual transportation process presented the Panalpina team with a number of challenges: they had to work out the safest and most efficient way of moving the helicopter from the air base to the port on a low-bed truck, bearing in mind the height and width constraints. A police escort helped to ensure that the transfer went smoothly. The helicopter was finally winched up and loaded onto the ship. A 200 m cable allowed the helicopter to be lifted in a controlled manner. Thanks to a special agreement with the Singapore port authorities, CHC engineers were permitted to attend the loading of the ship to check that the helicopter was safely stowed and secured. The team of representatives from Panalpina Vancouver's Helicopter Shipping Division and Panalpina Singapore carried out the assignment to the complete satisfaction of CHC Helicopters International. connect 1_2006 27 bdv_connect_24-32_e.qxp 21.4.2006 8:28 Uhr Seite 5 Worldwide Heavy parts sent by Danube Austria/Belgium/Iran Schoeller Bleckmann Nooter Apparatetechnik GmbH – SBN for short – is a globally active manufacturer of machinery for the fertilizer industry. In December 2005, SBN contracted Panalpina Linz to load four heavy parts destined for a fertilizer plant onto two Danube ships bound for Antwerp: a reactor weighing 370 tonnes and measuring 30,200 mm x 4,500 mm x 5,300 mm, a condensor weighing 310 tonnes and measuring 18,500 mm x 4,100 mm x 6,400 mm, a stripper weighing 218 tonnes and measuring 13,500 mm x 4,300 mm x 4,300 mm, and a scrubber weighing 82 tonnes and measuring 8,500 mm x 3,600 mm x 4,100 mm. In Antwerp the goods were transferred to a heavy transport vessel. The components were bound for Iran, where they would form the core of a fertilizer plant (ammonia/urea) built by Japanese engineering company Chiyoda Corp. of Yokohama. “Since there were low water levels in the Danube in December of last year, we had to divide the load between two ships to reduce the draught,” explains Peter Gahleitner of the Project Department at Panalpina Linz. Thanks to excellent coordination between all the partners involved in this job – including the heavy load specialist Felbermayr, the Danube shipping company Panta Rhei and the transshipment company in Antwerp – the parts arrived in the Belgian port on schedule, ready for the onward journey to their destination in Iran. All’s well that ends well Austria/Italy/Albania Following a successful tender submission, Panalpina Vienna was appointed by Viennese-based VA TECH T&D as forwarding agent for a series of shipments required for a major project in Albania. The contract involved the handling of over 100 truckloads of freight supplied from Austria, Germany and Italy plus delivery by canvas-top truck to building sites in Selita, Traktori, Shkozet, Kavaja, Shkodra, Fiber and Tirana or, alternatively, to a stockpile set up in Tirana. The contract specified routing via Trieste/Durres. The lack of suitable infrastructure in Albania made access to many locations extremely difficult. The consignments routed via the stockpile were delivered to the relevant sites at the appointed time by Panalpina’s Tirana-based partner A&A. The cargo included eleven transformers weighing 50-55 tonnes per unit, delivered by low-loader from Italy via TriesteDurres. The poor highway conditions necessitated detours and, in some cases, the provision of new access roads. Apart from forwarding, Panalpina was also responsible for mounting the transformers on their bases. Depending on the spatial constraints on site, unloading was by crane or hydraulic device. Given the lack of hydraulic unloading specialists in Albania, experts had to be flown in from abroad as needed. To avoid waiting times, the arrival of the trailers was meticulously coordinated with the deployment of the site assembly teams. Consignee Kesh Tirana 28 connect 1_2006 entrusted Panalpina’s Tirana-based agent A&A with the handling of customs formalities. All three partners VA TECH T&D, A&A Tirana and Panalpina Vienna were present to witness the successful mounting of the heavy plant. Representatives of VA TECH, A&A and Panalpina on site in Albania. bdv_connect_24-32_e.qxp 21.4.2006 8:28 Uhr Seite 6 Motorsport: A1GP Cup of Nations South Africa/Indonesia/Mexico/USA/China The A1 Grand Prix is the “World Cup of Motorsport”. Driver is pitted against driver, and country against country. The A1 Grand Prix brings together 25 nations, covering about 80 percent of the globe. While technology and innovation have an important part to play in this racing series, success is very much down to the individual driver, whose courage, driving skills and flair are what ultimately decide victory or defeat. The organizers of the A1 Grand Prix asked Panalpina Airfreight Management Ltd., Luxembourg, to transport the racing cars of all participating teams to and from five races on the tour, which began in September 2005. After the race in Durban (South Africa) at the end of January, 250 tonnes of freight – racing cars, spare parts and equipment – were shipped to Sentul (Indonesia) for the next meeting. Three MK Airlines charter flights were booked for this assignment. Panalpina Airfreight collaborated with the Panalpina agent in South Africa – Safcor Panalpina – in arranging the transport of this valuable cargo. The race held in Durban on 29 January 2006 – the seventh in the A1GP – was won by the 33-year-old Dutch driver Jos Verstappen. Some 100,000 spectators watched the main race through the streets of Durban, as Verstappen, a former Formula 1 driver, chalked up the first victory for the Dutch A1 team. The race in Sentul on 12 February 2006 – the eighth in the A1 Grand Prix series – was won by Nicolas Lapierre of the French A1 team, who beat the UK and Mexico in the sprint race. This was the French driver’s eleventh win of the season. This time Lapierre, who was second off the grid, made short work of the race: he overtook Britain’s Robbie Kerr, who started in pole position, at the end of the first lap and maintained his lead right to the finish. The next race weekend (the ninth in the A1GP series) was held on 26 February 2006 in Monterrey (Mexico). Again, Panalpina Airfreight transported the cargo for this race, chartering two aircraft, one from Evergreen International Airlines and the other from Kalitta Air. The goods were moved from Monterrey to Laguna Seca (USA), where the penultimate race was staged on 12 March 2006. The final destination is Shanghai (China), where the last race in the A1GP series will take place on 2 April 2006. Panalpina is responsible for shipping the cargo from Laguna Seca to Shanghai. Mike Zimmerman, Head of Event Logistics at Panalpina Airfreight in Luxembourg, calculated that 25 vehicles would be needed to transport the racing cars of all the teams participating in the A1 tour to Los Angeles Airport. The valuable freight will then fly from Los Angeles to Shanghai in two China Eastern aircraft. At the end of the season, Panalpina will ship the racing cars back to Europe. . connect 1_2006 29 bdv_connect_24-32_e.qxp 21.4.2006 8:28 Uhr Seite 7 Worldwide Basel landmark moves to Kunming Switzerland/Belgium/China Daniel Oppliger worked for the Natural History Museum in Basel (Switzerland) for 30 years preparing specimens. After taking voluntary early retirement so that he would have time for other projects, he helped the Institute of Zoology of the Chinese Academy of Sciences to set up a zoological museum in Kunming. This city (population approx. 4.5 million, altitude 1800 metres) is the capital of the province of Yunnan in the People’s Republic of China. The province has very diverse flora and fauna, making it an ideal location for the zoological museum. It was proposed that a well-known Basel landmark, one of the dark green fountains featuring Basel’s mythical emblem, the dragon-like basilisk, should be erected in front of the new museum. Oppliger conceived this plan together with Daniel Meier, a member of the board of the Friends of the Basel Natural History Museum, and suggested it to the Basel city council. Without further ado, the council decided to present the fountain as a gift. As the official statement of the Basel city council puts it: “The fountain is in the form of a dragon, which is a characteristic symbol of both China and Basel.” It goes on to say: “The dragon represents the friendly relations between the people of Kunming and Basel, and also the harmonious cooperation between the Zoological Museum in Kun- Karl Tschui from Panalpina Basel supervises the loading of the fountain. 30 connect 1_2006 ming and the Natural History Museum in Basel.” The basilisk thus serves as a link between the two cities and the two museums, and will in future act as a kind of ambassador for Basel in Kunming. The fountain had to be transported to China in time for the opening of the new museum. The initiators of the project contacted the logistics company Panalpina, which has a number of branches in China. As Panalpina's head office is in Basel, the company felt a special affinity with the basilisk fountain, so it decided to undertake the job for free as part of its commitment to sponsoring worthwhile activities. Under the supervision of Karl Tschui of Panalpina Basel, the special cargo was shipped in cooperation with Panalpina China. First, the fountain was packed at the Basel end in a crate measuring 220 cm x 120 cm x 138 cm, which ended up weighing 585 kilos. The crate was then loaded into a container. This was taken by rail from Basel to the Port of Antwerp (Belgium), where it was transferred to a Cosco Container Lines ship for the voyage to Yantian (China). From there it travelled by train to Kunming, arriving in mid-January 2006. It was immediately handed over to the Zoological Museum. bdv_connect_24-32_e.qxp 21.4.2006 8:28 Uhr Seite 8 In memory of Otto Schmid and Bernhard Handschin Within a short time we have had to mourn the deaths of two personalities whose work is closely linked to the fortunes of Panalpina. They gave a large part of their lives to the service of the company and contributed significantly to the success of Panalpina. Otto Schmid, the former President of the Ernst Göhner Foundation, which was the sole shareholder for many years and is now the main shareholder, died shortly before his 75th birthday. He was on the Board of Directors of Panalpina for 23 years. Until his retirement for age-related reasons at the last Annual General Meeting, he acted as Vice-Chairman, a function that he carried out with great expertise and entrepreneurial vision. Bernhard Handschin died at the age of 77 years while hiking in the mountains. For over 33 years, up to his retirement in 1993, he held various managerial positions in the Finance Department, one of which was as Chief Controller of the Group Head Office. He was also Finance Director of Panalpina Nigeria for several years. We miss them both and will always honour their memory. Publishing details: Editor, owner and publisher: Panalpina World Transport (Holding) Ltd, Viaduktstrasse 42, P.O.Box, CH-4002 Basel, Switzerland. Internet: www.panalpina.com. Tel. ++41 61 226 11 11. Responsible for contents: Martin Spohn, Corporate Communications. Editor: Martin Spohn, e-mail: martin.spohn@panalpina.com, Michèle Thüring by büro:z GmbH, Bern/Basel. Distribution: Monika Dups, e-mail: monika.dups@panalpina.com. Publication intervals/languages: “connect” is published several times a year in German, English, French, Spanish and Chinese in over 100 countries. Total circulation: 60 000 copies. Photos: cover: büro:z GmbH; p. 2: Getty Images; p. 3: Julian Salinas, Basel; p. 4–9: Getty Images; p. 7 top: Keystone; p. 10–13: Rolf Sulser; p. 14: Bühler; p. 15: büro:z GmbH; p. 16 and 17: Bühler and Getty Images; p. 18 and 19: Bühler; p. 20–23: Peter Maurer, Weisslingen Design and production: büro:z GmbH, Bern/Basel. Printed by: bdv, Basel. Printed on 100% chlorine-free bleached paper connect 1_2006 31 bdv_connect_24-32_e.qxp 21.4.2006 8:28 Uhr Seite 9 HSE at Panalpina Global and strategic responsibility is centrally controlled by Corporate HSE, a staff unit reporting to the Chief Operating Officer. The Head of Corporate HSE is Lynsey MacIver from Scotland. > Article on page 20