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The Panalpina magazine 2_2003 connect Long-standing partnership between Ericsson and Panalpina Page 4 Interview Market leader in Asia-Pacific Regional CEO Asia-Pacific, Lars-Ola Gunnarsson, on developments in the Asian economies and in Panalpina’s Asia-Pacific business Page 6 Logistics Know-how and trust Swedish telecoms company Ericsson’s cooperation with Panalpina in China Page 11 Interview Accelerate growth The new Regional CEO for North America, David I. Beatson, talks about his goals and management philosophy Page 12 Partners At home on all seven seas Nippon Yusen Kaisha (NYK) is one of Panalpina’s key seafreight partners Page 14 High-tech Page 16 Sponsorship Page 18 Projects Page 20 Automotive Page 24 Human Resources Page 26 Worldwide Page 31 Publishing details 2 connect 2_2003 Partnership links Far East with Europe Supply logistics for the German IT company Wortmann AG A contribution to better sight Panalpina is helping to finance a Swiss Red Cross project to combat poverty-related blindness in Ghana A plane full of masts Panalpina transports oversize components for the national stadium in Abuja (Nigeria) Hand in hand Logistics solutions for the automotive industry Life-long learning Knowledge and experience sharing thanks to the Panacademy virtual learning platform Partner of the high-tech industry Ladies and Gentlemen The high-tech industry is one of Panalpina’s four key industry groups, comprising not only manufacturers of computing, electronics, integrated circuits and telecommunication equipment, but also their huge first-tier supplier base. Panalpina has been a prominent service supplier to this sector for some time, and our customer list is graced by a growing number of Global Fortune 500 companies. The high-tech industry is continuing to shift production capacity into the coastal regions of China, benefiting from an almost limitless labor pool and a growing top-notch infrastructure. China is being converted into the world’s prime manufacturing location at breathtaking speed, aided by the legendary savvy and hardworking attitude of its people. With over USD 50 billion obtained through direct investments in 2002 alone, China has secured the number one position in that league and seems unlikely to be toppled for many years to come. This issue’s cover story throws the spotlight on Ericsson’s impressive presence in China. Ericsson has been an established player in China for over a century now, investing in building up its production and marketing capacities at times when other players were reluctant to do so. Ericsson’s conviction and stamina have paid off, and today they are one of the major suppliers of telecommunications equipment to the buoyant Chinese communications industry. Their experience mirrors the development and strategy of the Panalpina network in China. With the combination of our detailed industry focus and professional key account management, we have created a mutually beneficial partnership. The Pacific Rim is key to the world’s leading high-tech companies, not only for manufacturing and sourcing, but also for tapping the growing ranks of affluent consumer markets. Panalpina is already strong and well positioned in the Asia-Pacific region, and our excellent platform will enable us to grow together with our customers. Bruno Sidler President of the Executive Board connect 2_2003 3 Interview “Asia-Pacific is a region with tremendous opportunities in a complex business environment. Our goal is to take full advantage of these opportunities.” Market leader in Asia-Pacific Panalpina implemented a new Group management structure regionalizing its organization in 2002. The Regional CEO of Asia-Pacific, Lars-Ola Gunnarsson, looks back on the regionalization and forward to the development of his region. 4 connect 2_2003 Mr Gunnarsson, can you describe your experiences during the last 18 months after the regionalization was implemented? For me personally, it has indeed been an exciting experience to move from an established and rather predictable way of life in Scandinavia to a region with an amazing energy and drive. Asia is a region full of complexity and diversity; the sheer size of the population combined with the range of countries at different stages in their economic development, has created a market place with remarkable growth potential. It is a region with tremendous opportunities in a complex business environment. Our challenge is to take full advantage of these opportunities by introducing our standardized business processes and products across entire regions while paying the necessary respect to the local customer and market needs. In our region we have built a multi-cultural organization with strong functional skills and capabilities which can provide the best possible guidance and support to our business units. The initial focus has been to create a team spirit and to jointly establish the direction and goals for our region in the years to come. Operational excellence and cost effectiveness were key targets in our business plan process. In order to meet these targets, we realized the need for creating critical mass within certain business units as the base for establishing management teams with specific functional responsibilities and we consequently created several “Areas” in Asia Pacific, including South Asia, South East Asia, Oceania, and China/Taiwan. We also identified the need to strengthen our customer focus as well as marketing and sales activities in Asia, where Panalpina has not been perceived as a very aggressive player so far, and this is obviously an image we want to change. During the past 18 months, we have strengthened our network, customer base, range of products and services and seen good business growth; furthermore, we are convinced that we have the vision and strategy in place to establish Panalpina as a leading provider of forwarding and logistics services in Asia-Pacific. What is unique in dealing with customers in the high-tech industry? In which countries does Panalpina mainly work for high-tech customers? Most of our business units in Asia serve hightech customers, whether global brand name customers, contract manufacturers or vendors. The main activities are in China, Taiwan and South East Asia. The high-tech industry has suffered since 1999/2000 and the industry is now characterized by an uncompromising drive for achieving cost leadership as well as a changed focus from supply chain to demand chain, i.e. market-driven rather than product-driven production. Asia is the main production and assembly base for the industry and the requirements are somewhat different in Asia than in the rest of the world. We get involved in providing services on the supply side into assembly or production as well as on the finished product side to the final consumers. In close cooperation with clients, partners and in-house carriers we constantly monitor and improve our services for the high-tech industry. Apart from the core industries, which other customers does Panalpina serve in Asia Pacific? Apart from the core high-tech, automotive and healthcare industries, we have traditionally been among the market leaders in providing freight and logistics services for the retail and fashion industry. Japan and Hong Kong continue to be the main markets for luxury and fashion products, and brand name companies have continued to expand with own retail shops especially within China. In addition, retail goods are Asia’s single largest export industry with China, South Asia and South East Asia as the main production centers. In view of all these market advantages, we will strive to develop more precise and tailor-made import and export products to further boost our market shares. The oil & gas industry in Asia is growing with great potential while our involvement in this trend in Asia is still low profile. Thus, we have established a dedicated infrastructure to capture the huge business opportunities in this segment and bring our industry expertise to Asia. Panalpina is reorganizing its structure by creating “areas” and “business units” rather than operating in “countries” and “branches”. What are the advantages of this structure for customers in your region? We have developed a matrix organizational structure by grouping the agents and small business units into area organizations. This structure will enable us to strengthen our network in Asia Pacific by using local synergies and establishing "critical mass". Thus the local structures will "mirror" the business functions at regional level, tighten customer focus, and enhance operational excellence, competitiveness, cost awareness and ongoing growth. Any comment as far as your outlook and strategic topics are concerned? The Asia Pacific region remains the brightest spot on the world economic map despite the global recession and the SARS crisis. We will continue to grow with our customers by focusing on activities within our core industries in order to provide market-driven industry-specific services and solutions. We need to further grow our network in Asia organically and through acquisitions. We will continue to focus on achieving operational excellence combined with a strong focus on marketing and sales. Development and training of our staff will be an important role in our strategy; we strongly believe that the spirit, attitude and skills of our staff will prove to be our most important key to success. Curriculum Vitae Name Lars-Ola Gunnarsson Civil status Married, three children Year of birth 1948 Nationality Swedish 1969–1989 Various managing positions at Ericsson Telecom AB, Stockholm (Sweden) 1989–1993 Sales & Marketing Manager, Goingefrakt (Net Logistics), Osby (Sweden) 1993–1997 Multinational Accounts Manager, Panalpina Scandinavia, Stockholm (Sweden) 1997–2001 Managing Director, Panalpina Scandinavia, Stockholm (Sweden) 2002 Regional CEO Asia-Pacific, Hong Kong and member of the Panalpina Executive Board connect 2_2003 5 Logistics 6 connect 2_2003 Know-how and trust The Swedish company Ericsson is the world’s leading supplier of total telecommunications solutions and one of Panalpina’s most important customers in the high-tech industry. Panalpina and Ericsson work together all around the world – notably in China, one of the key markets for both companies. > connect 2_2003 7 Logistics Some 40% of Ericsson’s business in the Asia-Pacific region and approximately 10% of its total global business comes from China, where the company has been operating for over 100 years. “And we are still growing,” explains Anders Karlborg, Head of the Asia Pacific Supply Center in Nanjing near Shanghai since last year. “China is one of the fastest growing markets in the world and will remain so in the foreseeable future as well.” In 2000 the sales figure was some RMB 15 billion (USD 1.8 billion), hence daily sales averaging over RMB 40 million (USD 4.8 m). Together, Ericsson’s primary suppliers invested a total of RMB 15 billion (USD 1.8 billion) in China, not only creating a large number of jobs in the country but also significantly expanding its export volume. Ericsson, whose global workforce numbers some 57,000 in 140 countries, has a long and successful history in China. Founded in Sweden in 1876, the company was already active in China by 1892, and as early as 1894 it delivered 2,000 telephones to Shanghai. Its first representative office was opened in Beijing some 20 years ago, and in 1994 Ericsson (China) Company Ltd. was founded. With 3,600 employees, 26 local offices and 10 joint venture companies, Ericsson is now China’s leading supplier of telecommunications solutions and services. “Ericsson’s big success in this hotly contested market is based firstly on its commitment and delivery performance to its 8 connect 2_2003 customers. This includes providing innovative, integrated systems to all network operators to enable their current networks’ migration into future requirements like single broadband and multi-service networks. This also necessitate considerable investment in research and development programs,” says Anders Karlborg. In China Ericsson does not just sell its products and services but is also actively involved in the technological development of the country by developing skills and competences – both of customers and of its own workforce in China. In 1997, it founded the Ericsson China Academy in Beijing and in 1999 a research and development center in collaboration with the China Academy of Telecommunications Technology ”With the Beijing Institute of Technology we also opened a technology research center for mobile telecommunications,” says Anders Lars-Olaf Björklund, Manager Distribution and Logistics Development for Asia at Ericsson. Karlborg, proving the support China has received from the company in the area of technological development. “In 1999, Ericsson also established the industry’s first open laboratory for mobile multi-media communication in China,” he adds. Anders Karlborg, Head of the Asia-Pacific Supply Center Ericsson. Long-standing partnership with Panalpina Panalpina has had a presence in China since 1976 and today it has over 20 offices there. The organization offers the full range of serv- ices and has extensive know-how in complex logistics tasks. It is no coincidence, therefore, that Ericsson trusts in Panalpina’s services in China. “We’ve been working together for many years, and Panalpina has provided us both with traditional freight forwarding and with logistics services,” explains Lars-Olof Björklund, Manager Distribution and Logistics Development for the Asia Region. “It’s a demanding partnership that is based on a lot of mutual trust,” he adds. Anders Karlborg endorses that view. “Trust is important because we depend on Panalpina to a certain extent. We plan to strengthen our ties still further in the future and to integrate Panalpina more closely into our supply chain,” he says. On the other hand he points out that, like its other suppliers, Panalpina does not enjoy any special status but has to keep proving itself. The service portfolio that Panalpina offers its customer Ericsson in China is wide-ranging. Thus, Panalpina analyzes the supply chain and draws up optimization proposals; it uses EDI tools to provide visibility of the supply chain; it handles the return and replacement management, consolidates and clears products through customs, supplies Ericsson factories and radio base station project sites and organizes the provisioning of the necessary products at the suppliers. “On top of that we have two ‘implants’ working in the Ericsson plant in Nanjing near Shanghai. They are Panalpina employees who work exclusively for Ericsson and are responsible for the entire operational side of the functions served by Panalpina,” explains Ivo Roex, Key Account Manager for Ericsson in Shanghai. Stephen Yeung, President Panalpina China. The partnership with Ericsson, he says, is an ongoing process of development. “A close relationship like the one we cultivate with Ericsson doesn’t spring up overnight to suddenly find it functioning smoothly,” he explains. “New requirements and improvements are constantly emerging, we are always taking on new tasks. If something hasn’t been handled in accordance with the customer’s wishes, we sit down and look for solutions. Of course it’s important here to have a very open relationship based on mutual trust. Even a globe-spanning network, innovative products, local expertise and industrial competence won’t be enough if the mutual trust is missing.” Lars-Olof Björklund is happy with the service Panalpina provides and its innovations, but he knows that there is still plenty of enhancements to develop. “We’re a long way off having exhausted all the possibilities.” Generally, he feels that the outsourcing trend will persist for some time to come. Of course, however far this trend is taken, no company is likely to hand over complete control of its supply chain to outsiders. Nevertheless, he believes companies will outsource more and more of their non-core activities, while retaining the quality control competencies in-house as well as a competent demand function. Ericsson too sets great store by quality. “We measure service level, delivery precision, transit times, condition of goods on delivery and much more besides.” Industrial competencies The high-tech industry has been experiencing an unparalleled boom for some years and is therefore also changing very rapidly. The same is true of the growth market China. Therefore companies are partnering with logistics companies like Panalpina, which not only provide global coverage but also have excellent industry-specific and local market knowledge. Lars-Olof Björklund confirms this and stresses, “In the logistics > connect 2_2003 9 Logistics High-tech competence center Panalpina offers its customers innovative, tailor-made logistics solutions. Instead of offering general concepts for sale on the market, Panalpina pursues a controlled approach and develops tailored, complex solutions for its core customer groups in defined industry segments. The globalized structure of the economy requires extensive knowledge of one’s customer’s business combined with high flexibility, which is why Panalpina concentrates on projects in which it can contribute its core competencies and offer the customer genuine added value. Its success builds on its industry expertise, its global air and ocean freight network, the “asset free” principle and a consistent partnership management based on the best-in-class principle. Panalpina designs logistics concepts primarily for customers in the automotive, high-tech and pharmaceuticals/healthcare industries. In all these sectors the company has many years of experience and extensive know-how. Logistics specialists develop tailor-made solutions and are supported by a comprehensive key account management system as well as by Virtual Industry Competence Centers. These are virtual groups composed of key account managers plus staff from operations and sales. They communicate regularly via conference calls and workshops, develop joint solutions, bundle and expand their industry expertise and make this available to the organization. The Virtual Competence Center HighTech (VCCH) is headed by Ferwin Wieringa, Global Key Account Manager Seagate. 10 sector, we cooperate with companies that are organized on similar lines to ourselves and have a geographic coverage that is similar to ours. We are a global operation with strong local organizations that know the relevant market and are also familiar with the strategic objectives of the group. We expect our suppliers to be organized in a similar way.” This, he says, is a precondition to understanding the specific requirements of customers, keeping up with their high tempo and being able to offer them genuine added value. A logistics company must act extremely proactively, not only receiving instructions but also taking on tasks that previously were carried out in-house by the customer. “Here we expect a partner to accede to our individual ideas and present innovative solutions,” says Lars-Olof Björklund. “Of course there are also forwarders Ann Tang, Branch Manager Panalpina Shanghai. around today that concentrate exclusively on transport, and I appreciate that they are in perfect control of their business. But we need a logistics service provider who optimizes our supply chain, offers transparency and provides measurable services – a company that has a firm grip on costs and reduces interfaces to a minimum.” Ivo Roex, Ericsson Key Account Manager at Panalpina Shanghai. Interview Accelerate growth Panalpina has split its Americas Region into two separate Regions for North and Latin America. David I. Beatson joined Panalpina in July as Regional CEO for North America. The following interview highlights his management philosophy and goals. What attracted you specifically to the job of a Regional CEO for North America? Panalpina has an excellent reputation as a major global forwarder, customs broker and logistics provider. In fact, Panalpina is one of the best names in the industry. It’s great to have the opportunity to build on such a brand name and leverage it into an expanded market position in North America. However, while Panalpina in North America is highly respected in segments such as project shipments, oil & gas, high-tech and automotive, it is not as well known in other industry segments. Therefore, for me it’s an exciting challenge to build on this brand name and expand it into new vertical markets. Panalpina has been growing mainly organically in the last years. Will you pursue this policy in North America? Our objective is to grow both organically and through acquisitions. First of all I am convinced that organic growth is absolutely essential for our success. Companies which aren’t growing organically have a problem – it means that competitors are probably taking their market share. But obviously this growth strategy can be complemented through acquisitions at Panalpina, especially in a market like the US and Canada. Acquiring companies which fit our strategy will enable us to expand into new vertical or geographic markets and help us expand and strengthen our North American network. Organic growth coupled with rigorous expense control is essential. But, of course, one can’t shrink to success. In order to grow bottom-line profit, one must have top-line growth through new business. That means that we will increase our sales and marketing activities in order to sell more services to current customers and to develop new vertical markets. The second pillar will be growth through acquisitions as explained. Thirdly we will put a lot of emphasis on the development of the transpacific tradelane which is the biggest growth opportunity for North America. Furthermore we want to develop and introduce a full range of North American domestic products including time-definite air freight services and an expanded range of value-added logistics services. Can you explain this in more detail? It will certainly be important to further develop customer-oriented domestic airfreight products in North America. This is both an offensive and defensive strategy. Offensive, because these services will generate profitable sources of new business. And defensive, because we need a full range of services in order to prevent competitors with full service offerings from penetrating into our core international business. What will be your top priorities? First of all I want to meet all of our employees because I fully believe in a team environment. At the same time, I want to meet and talk to as many customers as possible. As I speak to our employees and customers I will be conducting a brief SWOT analysis to help me determine where we are doing well and where there is room for improvement. Another priority will be to review our financial performance and set some realistic guidelines for the North American organization. Furthermore we will roll out a plan to enable us to accelerate growth, improve performance and increase profitability. What are Panalpina’s strengths? Panalpina has numerous strengths as already mentioned. Important factors are definitely our experienced employees, our extensive global network and presence, an excellent reputation, a very well managed and profitable organization as well as a strong customer base. What do you like specifically about your job? I am driven by working in a team environment to generate profitable growth for our company. My managing philosophy is teamwork, good communication and an open door policy. Work smart, work hard – and have fun! David I. Beatson David I. Beatson (54) is an American citizen who holds a Bachelor of Science degree in Business Administration from Ohio State University and an MBA in Finance and Marketing from the University of Cincinnati. He has worked in the transport and forwarding industry throughout his 28-year career. After several years as Vice President Cargo Sales and Marketing at American Airlines, he spent seven years at Emery Worldwide, the last four as President and CEO, followed by two years as Chairman and CEO of Circle International. He left the company after the merger with EGL to establish his own consulting firm. connect 2_2003 11 Partners At home on all seven seas Nippon Yusen Kaisha (NYK) is one of Panalpina’s foremost partners in the seafreight sector. Having enjoyed many years of close collaboration, the logistics company and the Japanese seafreight carrier are now seeking to further strengthen their ties. Panalpina, along with its subsidiaries and central capacity management agencies, ASB Sea and ASB Air, meticulously selects its partner carriers in the airfreight and seafreight sectors according to the best-inclass principle. The carrier Nippon Yusen Kaisha (NYK), a member of the Japanese Mitsubishi group, is one of Panalpina’s oldest and closest business partners in the seafreight sector. The original association over a decade ago, then confined to routes between Asia and Canada, has since burgeoned into a cooperation spanning all the world’s oceans and trade routes. What is the secret of this success? “Efficient collaboration at all levels – both at management level and on the front line – is certainly one crucial factor,” ASB Sea Managing Director Thomas Eisenblaetter explains. “A good rapport 12 connect 2_2003 between executives is little use if there are hitches on the operational side – and vice versa.” “On top of that, NYK delivers quality”, Eisenblaetter continues. “Apart from obvious things such as shipping network and punctuality, the company sets high standards in areas such as information flow, documentation, invoicing, container and capacity management, even during the peak season.” In Eisenblaetter’s opinion, these are key elements in forging a successful partnership. “In offering customers first-rate, time-definite products, Panalpina ultimately depends on business partners of NYK’s caliber”, he adds. “NYK’s excellent freight space management system enables Panalpina to plan accurately and efficiently.” Reliability… By the same token, Panalpina’s reliability is particularly appreciated at NYK. Panalpina supplies NYK with precise details of its short- and medium-term capacity requirements, which the seafreight carrier confidently factors into its planning. This degree of dependability directly benefits both partners, as Minoru Sato, Chairman of NYK Europe, underlines: “NYK’s recent history of global expansion in the container liner sector has undoubtedly been influenced by the close partnership with Panalpina. At NYK, we are proud to have received the backing of a company of Panalpina’s standing during the expansion of our global container business, and we look forward to the many years of collaboration that lie ahead.” Minoru Sato is convinced that the international container sector is poised for further substantial growth and that, working in tandem, Panalpina and NYK will reap enormous dividends in the future. …and unwavering trust “We know that our colleagues at NYK will stand by their word”, declares Thomas Eisenblaetter. He is particularly pleased about this since, in his opinion, unbureaucratic handshake deals are losing currency in today’s business world. “Of course, such agreements are founded on a sound basis of trust, such as that which exists between NYK and Panalpina”, he hastens to add. Minoru Sato likewise highlights this aspect: “Our partnership is based on mutual respect and trust.” As Bernhard A. Liebisch, Senior Sales Executive at NYK Line in Rotterdam, points out, the quality of the relationship allows a timely and frank discussion of potential difficulties so as to nip any problems in the bud. “Personal contacts remain crucial,” he stresses. “Even if the notion of a ‘people’s business’ may sound a little trite these days, it is a particularly fitting description of the container sector.” Bernhard Liebisch values NYK’s commitment to the very highest standards. “Panalpina is, after all, answerable to its customers for its choice of partners! Indeed, Panalpina and NYK occasionally conduct joint negotiations with customers, especially in the projects sector.” As Liebisch sees it, a working relationship of this quality is an absolute prerequisite for securing a topclass product for customers. Cosmopolitan, yet traditional Founded in Japan in 1885, Nippon Yusen Kaisha (The Japan Mail Steamship Company) ranks among the pioneers of modern-day maritime shipping. With the launch of its liner service to Bombay (now Mumbai) in 1893, NYK was the first Japanese seafreight carrier to operate a long-distance link of this kind. 1968 saw the company become the first Japanese carrier to introduce a full container ship, the Hakone Maru, which ran between Japan and the US west coast. NYK again set new standards in 1970 as one of the co-founders of the legendary Trio Consortium that operated routes between the Far East and Europe. Today, it is one of the five members of the world’s largest container-sector consortium, the globally operating Grand Alliance. The company operates around 100 liners, of which over 70 are container ships. Overall, the NYK fleet embraces some 770 vessels, including luxury cruisers, pure-car carriers (PCC), bulk carriers, reefers and tankers. NYK also has a logistics division that offers overland shipments plus the associated intermodal logistics services. While NYK remains deeply rooted in Japanese business traditions and takes its social obligations very seriously, it is at the same time a cosmopolitan, customer-oriented company that has significantly raised its international presence in recent years. Christening of NYK Artemis The close ties between Panalpina and NYK were strikingly illustrated at the christening ceremony for the container ship NYK Artemis in Hiroshima. Godmother Marianne Sidler, wife of Panalpina CEO Bruno Sidler, dispatched the ultra-modern ship down the slipway on the first of many journeys across the world’s oceans. Boasting a GRT of 75,484 metric tons and a capacity of 6,492 TEU, the vessel will run between Asia and Europe. The freighter is some 299.95 meters long, 40 meters wide and 60.8 meters high from keel to mast top and is fitted with over 533 refrigerated container connections. Its service speed is 25 knots. connect 2_2003 13 High-tech Partnership links Far East with Europe Panalpina has forged a close partnership with the German IT company Wortmann AG in the field of supply logistics. The cooperation ensures efficient, on-time delivery to German PC dealers of goods originating from Far Eastern suppliers. The high-tech, automotive, healthcare and oil & gas industries are Panalpina’s core businesses. For these key industries, the forwarding group provides integrated logistics services at the global level. Among the hightech customers is the German IT company Wortmann AG. Just over two years ago, Panalpina took over this company’s supply logistics and has since been organizing air 14 connect 2_2003 and sea freight shipments for Wortmann between Asia and Germany. A smoothly functioning team Most of Wortmann’s IT products and computer components (monitors, notebooks, motherboards, etc.) are produced in Taiwan and China. A team assembled from Panalpina staff in Taiwan, China and Ger- many, as well as from the in-house carriers ASB-Air and ASB-Sea, see to it that the goods are shipped to Germany within the (often very tight) schedule demanded by the customers. All the parties involved – the suppliers and dispatch points in the Far East, the customs offices, airports, truckers and Panalpina representatives – work together with Wortmann as a close-knit team to ensure that the consignments are handled efficiently, quickly and without snags. in the air... Wortmann decides whether the goods are to go by air or sea. Airfreight is flown from Taiwan or China via Luxembourg to Münster/ Osnabrück, where it is cleared by customs and delivered to Wortmann the same day. ASB-Air buys in and manages airfreight capacity on behalf of the Panalpina Group. Both in Taiwan and China, this Panalpina subsidiary has developed a dense timetable of flights (daily departures), ensuring that sufficient capacity is available even at peak times. In 2002 Panalpina handled 502 airfreight shipments for Wortmann totaling some 340 tonnes. ... and on the oceans Goods that are sent by sea – either in consolidated shipments or as full container loads – are dispatched (depending on the manufacturing site) from Yantian, Fuzhou, Shanghai (China) or Keelung (Taiwan), reaching the North Sea port of Hamburg via the Suez Canal. Panalpina Bremen, the Group unit responsible for business with Wortmann, arranges customs clearance by means of the ATLAS program on-site in Hamburg. The goods are then delivered straight to the customer. Like ASB-Air does for airfreight, ASBSea purchases and manages the necessary seafreight capacity. The volumes shipped depend on the season, reflecting Wortmann’s orders. Up to four departures a week are offered from each of the departure ports. The tight schedules call for great flexibility all round: a special sales drive, for example, can involve shipping fifty 40-foot containers full of computer goods from Asia to Germany. Panalpina is the vital link between the Far Eastern manufacturers and Wortmann’s end-user customers in Germany. The flow of goods is accompanied by a steady flow of information, ensuring that Wortmann is able to plan its activities ahead – and that the PC dealers have the necessary goods on their shelves the moment they are needed. Wortmann AG With about 5500 resellers, 240 inhouse staff and 2002 sales totaling approximately EUR 225 million, Wortmann AG is one of Europe’s largest independent IT companies. Still relatively young, its first 16 years have been a continuous success story. Wortmann AG is a qualityand service-driven manufacturer of notebooks, PC systems and servers (equipment is sold under the Terra brand) and a distributor of peripherals and components. The products are sold through medium-sized specialist dealers and systems suppliers as well as to public authorities and schools. connect 2_2003 15 Sponsorship A contribution to better sight Over the next three years, Panalpina will be helping the partially sighted in West Africa by contributing 550,000 Swiss francs to a Swiss Red Cross project to combat blindness in Ghana. Panalpina CEO Bruno Sidler and Daniel Biedermann, Director of the Swiss Red Cross, signing the sponsorship agreement. Panalpina has been active in West Africa for many years, and we thus have strong links with the region. At the beginning of this year these flourishing local ties led us to support a project launched by the Swiss Red Cross (SRC) as part of the international “right-to-sight” program. The SRC, which is the largest Swiss aid agency, has been active since 1990 in preventing and treating poverty-related blindness, which affects 184,000 people in Ghana. Its activities focus on two regions in particular. Social responsibility CHF 1 million will be spent on the project between 2003 and 2005, after which the SRC’s Ghanaian partners will take over full responsibility for it. Panalpina is contributing CHF 550,000 to the program. “The important thing is to provide concrete aid for sufferers where they need it,” explains Panalpina’s CEO Bruno Sidler, adding: 16 connect 2_2003 “Every company has a social responsibility. We are discharging ours by supporting this SRC project.” Dr. Maria Hagan, the eye specialist who heads the Ghana health authority’s national eye program, gives the following reasons why poverty-related blindness is so prevalent: “More than 80 percent are blind because they suffer from cataracts caused by the widespread trachoma infection that is associated with poor hygiene, or from sight loss due to vitamin A deficiency.” And she instantly says how these causes are countered: “Cataracts are treated by a simple operation, while we take preventive measures to combat trachoma and vitamin A deficiency, which affects children in particular.” Prevention, treatment, vision correction As part of the international “right-to-sight” project, the Red Cross – in conjunction with the health authorities – is focusing on three areas: prevention, treatment, and the manufacture and distribution of corrective aids. The objective is to halve the incidence of poverty-related blindness to 0.5 percent of the population by 2010. Over 30,000 people have already been treated in 2003, 1,658 of them undergoing operations for cataracts. The first half-year was also used to renovate four eye clinics and to train both Red Cross volunteers and opticians. Win-win situation Hagan is happy with activities to date. She points out that every partner contributes: “We cannot achieve our objective of pre- venting poverty-related blindness without the help of the SRC and donors like Panalpina.” Ron Bannerman, the SRC official responsible for Ghana, details the allocation of roles: “Together with the health authorities we concentrate on establishing and expanding eye hospitals, training doctors, nurses, opticians and Red Cross volunteers and setting up optician centers – while Panalpina’s financial commitment means that we don’t have to worry about where the money will come from.” Panalpina’s support – Panalpina is concentrating its sponsorship activities on this project – thus enables the SRC to concentrate on the program itself, collaborating with the health authorities to drive it forward. In the final analysis, everybody wins – but above all Ghana’s visually impaired, its many sufferers from povertyrelated blindness. Poverty-related blindness There are over 40 million blind people in the world, and the number is increasing every five seconds. Most of the blind live in the countries of the South. 80 percent of them went blind unnecessarily – as a result, that is, of diseases which can be cured or prevented by simple means. This poverty-related blindness has grave social and economic consequences. For further information, visit www.redcross.ch connect 2_2003 17 Projects A plane full of masts Panalpina Nigeria and our in-house carrier ASB-Air have set new standards in an assignment for construction company Bilfinger Berger AG: masts 22.4 meters long and 1.25 meters in diameter have been shipped by an MK Airlines cargo Jumbo for the first time. The masts were needed for the velodrome at the ultra-modern sports stadium in Abuja, Nigeria. 18 connect 2_2003 Major construction projects like the national stadium in Abuja, Nigeria, are a challenge to all concerned. Individual components come from many different countries or even continents, they tend to be heavy and unwieldy, and they have to be delivered to the site just in time – i.e. exactly when they are needed. No easy undertaking, especially since this sort of major project always involves countless partners. “The transportation partner in projects like this must have the complex processes and the various interfaces involved completely at its fingertips, otherwise there are bound to be construction holdups”, explains Wolfgang Essig, Panalpina’s Senior Vice President Nigeria Coordination and the company’s chief account manager on this project. “Flexibility and short, fasttrack decision-making processes are absolutely central to this sort of transportation venture”, adds Johannes Lichti of Panalpina’s in-house carrier ASB-Air in Luxembourg. Velodrome supports Panalpina Nigeria and ASB-Air did a brilliant job, handling many different types of consignment for Julius Berger Nigeria plc, a subsidiary of the German group Bilfinger Berger AG that built the Abuja National Stadium. One of them meant flying three enor- mous masts for the velodrome, weighing a total of 54 tonnes, from Luxembourg to Abuja. These had been transported to Luxembourg from various European countries, largely by the suppliers themselves. The project as a whole was managed from Basel (Switzerland) and Luxembourg, in close coordination with the client in Wiesbaden (Germany). Lifted into the hold by high- and low-loaders The 50-meter masts, divided into three sections for shipment, were delivered on lowloaders. Two mobile cranes transferred the masts from the low-loaders to two high-loaders, lifting devices that placed them directly in the hold of the Boeing 747-200F through the forward freight hatch. The process took around four hours. The sections were so long (up to 22.4 meters) and thick (1.25 meters in diameter) that they occupied almost the whole of the plane’s payload area. On arrival in Abuja the process was reversed. After unloading, which took around three hours, the special cargo was hauled to the construction site. The Boeing was chartered by ASB-Air from MK Airlines, a Panalpina partner of many years’ standing. The time factor had prompted the client to choose air rather than sea freight, which would have been less costly. As a result, construction work proceeded seamlessly and was completed on schedule. Abuja National Stadium The National Stadium in Abuja, Nigeria, was opened in April this year. An architectural gem, it has already been given an apt nickname: “the Theatre of Dreams”. Covering 32,000 m2 and accommodating 60,000 seats, this ultra-modern temple of sport caters for countless different activities. The stadium and velodrome were built for the All-African Games, which will be held in autumn 2003. connect 2_2003 19 Automotive Hand in hand Panalpina’s focus on the logistics needs of its automotive customers has defined new standards for service and partnership. By Arnold Davis In the wake of a volatile global economy, OEMs, Tier I and Tier II suppliers in the automotive industry have been experiencing pressures to cut costs, increase velocity of production, and generally do more with less. That has caused pressures to be felt up and down the entire manufacturing supply chain and controlling that flow of parts and finished products has become increasingly complicated. Companies are learning they can’t do it alone. The automotive industry is an environment where trust must be earned. In this environment, Panalpina’s Virtual Compe- Michael Wills, Head of the Panalpina “Virtual Competence Center – Automotive”. tence Center - Automotive (VCCA) has been experiencing great success in building partnerships and setting new standards for service. VCCA is headed by Michael Wills, Panalpina’s Vice President and Global Leader of the VCCA. Since it was formally launched less than a year ago, Panalpina’s VCCA has been successful in highlighting Panalpina’s automotive excellence to the industry. “Ours is a virtual center because we include automotive logistics experts on six continents who come together regularly to focus on specific needs of our shippers and continually look for ways to improve the level of service to manufacturers, suppliers, and vendors in the global automotive industry,” said Wills. “The VCCA insures that automotive parts and finished products move through the entire chain to and from any origin or destination on six continents.” Collaboration as major success-factor The VCCA partnership efforts work because it forces Panalpina to listen to its customers as it strengthens collaboration. In the process, it enables Panalpina to significantly reduce purchasing errors as well as transportation costs, and management gains a valuable tool to take customer service, financial and operations performance to new levels. “Collaboration is how we manage information and information is the primary tool for good logistics management,” says Wills. Collaboration also was the means through which Panalpina identified the need for more flexible, expanded air charter service linking the active parts manufacturing centers in Brazil with the rest of the automotive world through Panalpina’s hub 20 connect 2_2003 in Luxembourg. The expanded service adds 65 tons of loading capacity on a fully chartered DC 10-30 aircraft that leaves Sao Paulo every Wednesday. The new service complements an on-going Boeing 747-F- charter that connects Sao Paulo with South Africa. An exchange of experiences is key Another example of collaboration is Panalpina’s sponsorship of industry-specific symposiums that bring together shippers, carriers, and service providers in a crossorganizational forum to discuss mutual challenges, dependencies, efficiencies and opportunities. “Listening is the key ingredient for the success of these symposiums just as listening is an integral tool to foster our growing partnerships,” remarks Wills. “VCCA works because it enables everyone in Panalpina to listen to our customers.” At its most recent symposium in Traverse City/MI, the VCCA discussed its continuous effort to adapt to the marketplace with tailor-made solutions, through a clear strategy followed by solid execution. Panalpina’s core competency challenges shippers to push technology and logistics innovations to find new ways to manage logistics. “When we create internal and external awareness of our capabilities and goals and then create the tools and training to reach those goals, we are much more effective in developing new business and current cross-selling opportunities,” says Wills. That is one of the reasons why Panalpina’s logistic center in Detroit has been a major success. The newly operational 62000 sq ft facility is close to the airport, and using state-of-the art inventory man- > connect 2_2003 21 Automotive 22 connect 2_2003 agement, is able to expedite products through customs for fast delivery to all regional auto production facilities. “If a spare part is missing or just delayed by only an hour, it could shut down an entire production line,” explains Wills. Automotive symposium in Michigan Effective order management was a key topic for symposium speaker Wes Johnson, Director of Customs Service, Logistics and Planning at Robert Bosch Co. He emphasized that cost pressure is as intense as it has ever been. “Suppliers are looking under every rock to reduce pricing because they have no choice,” said Johnson. He agreed that visibility and collaboration built on trust are the tools for doing business effectively, and he advised that in order management, visibility can be maximized when the logistics service provider, Panalpina, is brought into the management and planning process early. Partnership and trust “Partnership with Panalpina works because of mutual trust,” commented a Panalpina shipper at the symposium. “Trust is necessary before shippers and their service providers can collaborate to look at problems with a mutual perspective.” According to Wills, trust is the basic requirement at the highest level of every logistics partnership. At that level, only reached by about five percent of logistics relationships, the relationship is an exclusive partner base where both shipper and service provider have mutual dependency and shared goals. VCCA and its client relationships reach this level through close interaction and trust. “Collaboration built on mutual goals and trust empowers automotive companies and their suppliers to control their entire logistics process. When we work toward a common interest, we can provide complete visibility and pinpoint opportunities as well as competitive hurdles.” The success of Panalpina’s VCCA proves that supply chain management can determine the success or failure of a product Customers and representatives of Panalpina at the Automotive Symposium in Traverse City, Michigan. or even an entire company and has redefined the relationship between shipper and logistics supplier. Competitive prices are still a factor in ocean and air freight forwarding, but the focus has changed to consider the total delivery cost, i.e., all the various cost elements along the value chain. The VCCA uses state-of-the-art measurement to track and measure factors such as reliability, flexibility, and responsiveness. This level of service means minimizing the number of ad hoc relationships and interfaces while building a solid partnership between the shipper and the logistics services provider. “Obviously we are on the right track,” says Wills. “Every company has different logistics requirements, and divisions within companies have different logistics requirements, but we have proven that our relationships work when we are open to explore new ways of managing the logistics process.” Arnold Davis is a freelance journalist who lives in the US. connect 2_2003 23 Human Resources Life-long learning To keep up with the increasing pace of business, having a sharp mind is just as vital as being quick on your toes. Some three years ago, Panalpina launched a virtual training platform under the name Panacademy to provide its staff with a framework for continuing professional development and help maintain today’s high standards of customer service in the future. With the business world continuing to undergo rapid change, increasingly high demands are placed on the workforce in terms of flexibility, adaptability and the commitment to acquiring new skills. By the same token, motivated employees with initiative encounter a wealth of opportunities for personal and professional growth. At Panalpina, a high priority is attached to long-term corporate development, of which advanced training is a cornerstone. To ensure that performance and quality are steadily enhanced and dovetailed to the rapidly shifting client requirements in this fast-moving age, the company launched a virtual training platform under the name Panacademy in 2000. The advanced training program enables participants to sharpen their skills and improve performance by fully addressing the demands of the market. Heinz Zengaffinen Head of Training & Development. Panacademy graduates: Charu Arora Dua, Lesley Hume, Thomas Mittermair. 24 connect 2_2003 Growing with the company Panacademy is by no means a centralistic program for the privileged few. As an intrinsic part of the company, it is open to all Group staff and, as such, fully in line with the corporate culture, which guarantees all employees equal opportunities for personal growth. Yet Panacademy is not there to “spoon-feed” its pupils: it demands initiative on the part of the individual. Those actively interested in their personal and professional development will find an intriguing range of advanced training courses that also mirror corporate needs. Charu Arora Dua’s career is a case in point. Now Marketing Manager at Panalpina India, she took on a summer job at the company four years ago and progressively developed her skills through training. Today, she is responsible for strategic planning in the South Asian region. “The Panacademy courses taught me about various facets of logistics and management and enabled me to perform my duties more efficiently,” explains Charu Arora Dua, who holds a Master’s in Business Administration with a special focus on international business/marketing. “Panacademy offers all Panalpina employees the chance to learn new things and grow within the company – an arrangement from which both individual and company profit.” Client focus The Panalpina Group’s Training and Development Officer, Heinz Zengaffinen, underscores the benefits for the company: “Panacademy, like all Panalpina’s undertakings, is totally geared to the needs of its clients. Our training program is a function of our business targets. The strategy we pursue has two objectives: to satisfy employees’ needs for growth and to meet the demand within the company for highly skilled specialists. Together, these two planks lay the foundation for a first-rate customer service.” That these two objectives go hand in hand was demonstrated by Thomas Mittermair, Seafreight Import Manager at Panalpina Linz (Austria). He successfully completed a two-year part-time course in export/international management at the Johannes Kepler University in Linz. “Apart from the assimilation of theoretical knowledge, particular importance was attached to client focus. I now more fully appreciate customers’ needs and can better cater for these.” This shows how greater skills and expertise directly benefit the client as well as Panalpina. at Cranfield University in the UK. These include three key account management courses (The Winning Pieces, The Winning Strategy and The Winning Quality) plus Navigating Our Future (a course designed for the senior executives of tomorrow) and the Leveraging Supply Chain Management course. Swapping know-how and experience Lesley Hume, Business Development and Customer Service Manager at Panalpina Toronto (Canada), has attended the Leveraging Supply Chain Management course at Cranfield University. Apart from the subject matter covered, she particularly appreciated the close contact with Panalpina colleagues from around the world. “At last I could put faces to the names,” Lesley Hume enthused. “In fact, for me, the opportunity to learn from other people’s experience made the biggest impact on my routine work. By pooling know-how from different national and organizational units, we are effectively creating added value for our clients.” This was an indirect tribute to one of Panalpina’s key assets: team spirit. For the top-class services provided by Panalpina to its clients would be inconceivable without effective interaction across whole countries and continents. Wide-ranging course program And how is training structured at Panalpina? “The program embraces courses at local, regional and global level,” Zengaffinen explains. “The locally organized program – which embraces induction courses for new staff, specialist training, language, computer, safety and sales courses, the Moving Forward scheme and lots more – promotes the smooth running of day-to-day business. The activities at regional level are designed to encourage growth within a specific geographical area. Specialists and managers from the relevant countries are appointed to standardize procedures or oversee change processes and discuss regional business issues. At the global level, the program features the traditional courses connect 2_2003 25 Worldwide Flashing down the ice track Germany/Canada Bobsleighers race down the ice track at speeds of up to 150 kilometers an hour. A few thousandths of a second can make the difference between winning and losing. It all hinges on the bobsleigh itself – a sophisticated high-tech machine: the best equipment is essential to success. So it follows that transporting these precious sleighs is by no means a simple undertaking. Panalpina has been handling bobsleigh transportation for the top teams for around three years. After the European Championships in Winterberg (Germany) last winter, Panalpina transported 22 men’s two- and four-man bobsleighs to Calgary (Canada), the next World Cup venue, for several different nations: two belonged to Monaco, two to Russia, four to Latvia, three to the Czech Republic, seven to Germany and four to the USA. All the teams except Monaco brought their sleighs in their transport containers to Panalpina Frankfurt themselves. This unusual cargo, which was organized by ASB-Air, weighed a total of around 15 tonnes. On January 29, 2003 the precious consignment set off via Luxembourg for Calgary, where it was handed over to Adventix, the agent for AIT World Wide Logistics. By February 3, 2003 the bobsleighers were already able to resume training, flashing down the ice track on their sleds. On February 8–9, 2003 they did it for real, at the World Cup event in Calgary’s Olympia Park. Panalpina then returned some of the sleighs to Winterberg and St. Moritz, Switzerland, via Frankfurt. 26 connect 2_2003 Dubai hub United Arab Emirates Panalpina is strengthening its position in the Arab Emirates. In early 2003 Panalpina Gulf LLC opened its headquarters at the Logistics Center at Dubai airport. HH Sheikh Ahmed bin Saeed Al Maktoum, Head of the Department of Civil Aviation of the United Arab Emirates and Chairman of Emirates Airlines, spoke to the guests assembled at the dedication ceremonies. The new building includes modern office facilities and a 1450 m2 warehouse located right next to the tarmac. Because of its ideal geographic location, the new headquarters in Dubai will be used as a hub for airfreight shipments to the Middle East, Central Asia and Africa. Abdul Rahim M. Abdulla and Robert Timmermann from Panalpina Gulf LLC. The safety net USA In May 2003 Panalpina became a member of C-TPAT, the US "Customs-Trade Partnership Against Terrorism" program. Launched by the US government together with logistics service providers, the goal of C-TPAT is to protect world trade from acts of terrorism. In order to join the program, companies must have implemented a safety and security plan that complies with US customs guidelines. Panalpina is certified in a number of categories: Licensed Broker, Air Freight Consolidator, Ocean Transportation Intermediary and Non-Vessel Operating Common Carrier (NVOCC). As a C-TPAT member, Panalpina benefits from accelerated processing of its shipments at the US border. Taking the pulse of the auto industry Switzerland The first-ever AutoLogistics Europe Conference – the European counterpart of the AutoLogistics Global Conference in the USA – took place this spring in Montreux, Switzerland. Panalpina, one of the main sponsors of the conference, was also an exhibitor, and Panalpina’s Thomas Blank, Senior Vice President, took part in the panel discussion. Representatives from the automobile industry as well as other providers of logistics services were also on the panel. The conference was a useful forum for car manufacturers, suppliers and logistics service providers to discuss their vision of the European automotive market. connect 2_2003 27 Worldwide Man vs. nature Alaska/Canada/Arctic Panalpina organized six charter flights from Alaska to the Russian Arctic for the Canadian mining company Bema Gold Corp. All the parties involved in the flights worked together perfectly to make sure the entire shipping process ran smoothly – even though the cargo, the destination and the Arctic temperatures were anything but normal. At the Panalpina end, the Charter department of the Group’s inhouse carrier ASB-Air in Luxembourg, the ASB-Air representatives in Anchorage, Alaska, and the Panalpina offices in Toronto and Vancouver, Canada were all involved in the 7-day project. An Ilyushin 76 operated by two different Russian airlines was used to fly in the 180 tonnes of cargo. The rather unusual cargo – a base camp for Bema Gold employees, as well as drilling and testing equipment – originated in Canada and the USA. The individual cargo components were transported separately to Anchorage, where they were consolidated and loaded onto the aircraft in 20-foot containers. The flight went from Anchorage to the Russian city of Bilibino, which is located in the Chukotka region of Siberia. The biggest challenge came from rising temperatures in the Arctic region. The cargo had to be delivered within a very short time, as the ice runway in Keperveyem (Bilibino) had just about reached the point where no more cargo planes could land due to the fluctuating temperatures. Anchorage International Airport proved to be an ideal starting point for flights to Siberia because of its location in the geographic center of the Northern Hemisphere. 28 connect 2_2003 Focus on the oil & gas business Namibia Early this year the 7th Offshore West Africa Conference and Exhibition was held in Windhoek, Namibia, where oil and gas producers and their partners met to discuss developments in the industry. Panalpina has been active in West Africa for years and regularly participates in this conference. This year, Panalpina companies from Gabon, Angola and Nigeria, as well as ASB-Oil & Gas, Basel and Safcor Panalpina, Panalpina South Africa and Houston, represented Panalpina’s activities in the oil & gas industry, thus helping to further strengthen their customer ties. The team at the Offshore West Africa Conference: Andreas Nowak, Panalpina South Africa; Georg Geiger, Safcor Panalpina; Nelly McCright, Panalpina Houston; AnneMarie Sickeler, Panalpina Angola; Albert Bismuth, Panalpina Gabon (l-r). Professional work Hong Kong/Canada/Australia In June, ASB-Panprojects China and Panalpina Vancouver (Canada) arranged the hangar-to-hangar shipment of four helicopters. The Sikorsky S-76 helicopters had been sold by Hong Kong Flying service to Lloyds Helicopters in Singapore. Three helicopters were sent by ro/ro vessel to Calgary (via Vancouver), whereas one helicopter was shipped to Melbourne (Australia). All helicopters were trans-shipped in Yokohama (Japan), and all operations in Japan were supervised by personnel of ASB-Panprojects Tokyo. The business was acquired through Panalpina Vancouver which enjoys an excellent reputation among helicopter operators worldwide. Lloyds Helicopters followed a recommendation and was especially convinced of the technical expertise provided by Panalpina in the transport proposal. Having been present during the collection on especially extended low loaders and the loading operation onto a RoRo vessel the owner and Managing Director Mr. Chris Lloyd commented after successful operation: "Even though Panalpina’s proposal was not exactly cheap, the method statement contained therein convinced me that we are in good hands. After having witnessed the loading operation set-up by ASB-Panprojects in Hong Kong I am very impressed by the professional service and will consider Panalpina also for future shipments.” connect 2_2003 29 Worldwide The silver bullet Germany/USA Mercedes’ exclusive CLK-GTR roadster features a 6.9 liter V12 engine generating 631 BHP. The car has a top speed of 320 km/h. Only 20 of these luxurious silver two-seaters were built, and one of these was recently shipped by Panalpina from Luxembourg to Los Angeles. The dealer in Germany personally delivered the costly “silver bul- 30 connect 2_2003 let” by truck to the airport in Luxembourg. It took about an hour to get the roadster ready for the flight: First it was unloaded from the truck, then the body and sensitive vehicle parts were protected so that the exclusive vehicle could be tied down onto an air cargo pallet and transported safely. A Cargolux plane then flew the car to the United States. This unique airfreight assignment was acquired by Panalpina Hanover, which also handled all the special arrangements relating to this attention-grabbing automotive transport job. Efficiency and transparency UK/Germany GF-X (Global Freight Exchange) is a neutral Internet technology-based marketplace for the airfreight industry that Panalpina was instrumental in developing. Airlines notify their available aircraft capacity on this virtual platform while the forwarding and logistics companies that participate in it either announce their needs on the network or go straight ahead and make a booking. This summer, the GF-X Advisory Council commended Panalpina London and Panalpina Frankfurt for their outstanding work in connection with the roll-out of the e-commerce platform. This is not only an acknowledgement of the Panalpina Group’s key role in actively developing the GF-X electronic marketplace, but also shows the high regard in which the virtual platform is held in day-to-day business. Precision work Switzerland/Germany/Italy/South Africa Panalpina was commissioned by the electrical engineering company ABB Schweiz AG to ship an oversize consignment from Italy, Switzerland and Germany by sea to Richards Bay on the east coast of South Africa. The freight comprised five 61-tonne and five 82tonne transformers, 770 x 352 x 456 cm rectifier cabins weighing 12.5 tonnes each and some 40 shipper-owned containers. Under the expert management of Karl Tschui from Panalpina Basel (Switzerland), the components were taken to the Hillside Plant job site near Richards Bay, where an aluminum manufacturing plant is being extended. The goods were shipped between January and May 2003 in three part consignments dispatched by ABB Legnano (Italy), ABB Schweiz and ABB Deutschland. The first of these was routed via Genoa, while the Swiss and German goods passed through Antwerp. Precarriage to the port of Antwerp was mainly by inland naviga- Natalie Kelly, Matthew Paxman, Richard Hartmann, Glenn Barnes, Steve Williams, Sukh Guru, Lynne Stewart, all from Panalpina London (l-r). Ewald Heim and Nadja Müller, from Panalpina Germany (front row, lr); Andrea Sinclair, GF-X; Jörg Meyer-Schuchardt, ASB-Air Frankfurt; Christian Schink, Panalpina Regional Center Europe; Alexander Mehr, Kerstin Schreiber, Ralf Buchberger, Volker Werner, all from Panalpina Frankfurt (back row, l-r). tion along the Rhine. Having arrived in Belgium, the freight was handed over to seafreight carrier MACS, which directly serves the port at Richards Bay. The initial leg of the journey from ABB Legnano, on the other hand, demanded precision work and project know-how due to the many tunnels to be negotiated between Milan and Genoa. Indeed, the entire route was painstakingly checked in advance given that there would be only centimeters to spare in some cases. The components were finally transported using special low-loaders. The formalities at the Italian port were handled by Panalpina Genoa prior to handover of the consignment to the Italian seafreight carrier Messina Line, which operates a regular roll-on roll-off service to South Africa. The freight was loaded onto Mafi trailers for rolling over the ramp of the ro-ro freighter. On approaching its destination, the vessel put in specially at Richards Bay to allow unloading of the ABB cargo. Safcor Panalpina’s projects department, headed by Barry Cull, supervised the handling of the components upon their arrival in South Africa plus oncarriage from Richards Bay to the Hillside Plant job site. 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, büro:z GmbH, Bern. 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: Front, p. 6–10, p. 14, p. 25, p. 27 (C-TPAT, Montreux), p. 32 (ship): Peter Maurer, Weisslingen; p. 3/4,: Julian Salinas, Basel; p. 12/13: NYK; p. 15: Wortmann; p. 16: Werner Getzmann, Reinach; p. 17: SRC; p. 20/23: Grand Traverse Resort and Spa, Traverse City/MI; p. 21 bottom: Cargolux; p. 21 top/p. 22: Joe Wilssens Photography Inc., New Baltimore/MI; p. 31 top: GF-X. Design and production: büro:z GmbH, Bern. Printed by: bdv, Basel. Printed on 100% chlorine-free bleached paper. connect 2_2003 31 Francisco Domingo Paulo Panalpina Angola, African Star. “The combined air-sea ‘African Star’ service links oil & gas customers along the West African coast with Panalpina’s global airfreight network. I ensure that the right goods are delivered to the right place – whether it’s a port or a platform on the open sea. What I like best is the contact with the customers. When everything runs smoothly and my customers are satisfied all round, I feel I’ve met my goal. I enjoy my work a lot. Thanks to Panalpina I’m always learning new things and addressing new challenges.” “Satisfied customers all round” connect 2_2003
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