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UNIFEEDER
Annual Review 2009
What is feedering?
The rapid expansion of global trade, efficiency of seaborne transport, containerisation and economies of scale in the shipping and
port industries have fundamentally transformed global supply chains in the last decades.
On transoceanic routes, international container shipping lines use large container ships with capacities of up to 15,000 TEU.
The cargo is discharged at large transshipment ports (hubs) and reloaded on smaller vessels (feeders) for further transport to
the actual port of destination (hub and spoke system).
Feedering forms a crucial regional link in the global transport chain. It is carried out by independent carriers, such as Unifeeder,
or by the international container shipping lines themselves.
What is shortsea?
When intra-European cargo is carried from door to door, seaborne transport is combined with rail and/or road into an integrated
multimodal transport solution that optimises the whole supply chain rather than each part. By containerising the cargo to standardised
units a unique combination of various modes of transports can be used to form an integrated delivery chain.
The competitiveness of shortsea door to door transports lies in its economics, reliability and superior capacity. Shortsea transports
have become even more attractive as increased demand for transport and growing use of trucks have put the European road network
under strain. Shortsea transports decrease congestion and the pressure on environment by making better use of the total transport
capacity in Europe.
CONTENTS
UNIFEEDER
2 This is Unifeeder
3 2009 in brief
4 Letter from the CEO
6Business model and strategies
7 Visions and objectives
10Feedering - an industry for the future
12 Business unit Feeder Services
14Shortsea brings relief to Europe
16Business unit Shortsea Services
ANNUAL REVIEW 2009
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35
Case Tank & Bulk
Case DB Schenker
Our tools
Environment is top priority
Corporate Social Responsibility
Board of Directors
Group Management
Risks
Corporate Governance
36 Financial review
Statement by Group Management
and Board of Directors
37Consolidated income statement
38Consolidated balance sheet
39Consolidated cash flow statement
40 Independent auditor’s statement
41 Glossary and financial definitions
Unifeeder is a dynamic logistics company.
As Northern Europe’s leading feeder operator with a rapidly
growing shortsea door to door business, we are passionately
committed to achieving cost-efficient, reliable, sustainable and
environmentally friendly modes of transportation. We find
smarter ways to move our customers’ containers anywhere
in Europe, using the best combination of sea, rail and road.
UNIFEEDER
ANNUAL REVIEW 2009
1
THIS IS UNIFEEDER
Building on three decades of experience and a
strong financial track record, Unifeeder today
operates the largest feedering network in
Northern Europe and a growing pan-European
shortsea door to door business. Founded in
1977 and headquartered in Aarhus, Denmark,
Unifeeder serves customers from eleven offices
in nine countries.
BUSINESS UNITS
Feeder Services (schematic)
Shortsea Services (schematic)
Feeder Services
As the largest feeder service provider in Northern
Europe, Unifeeder offers an extensive and reliable
feeder network which covers all the major ports in the
area, stretching from the Western edge of the North
Sea to the Eastern rim of the Baltics.
Unifeeder’s network links more than 30 ports with
daily calls across Northern Europe. At the end of 2009,
Unifeeder operated a fleet of 32 chartered container
vessels with a capacity ranging from 500 to 1,500 TEU.
Shortsea Services
Unifeeder’s shortsea business unit provides more than
700 diverse clients with European door to door services.
By integrating the feedering network and land
transports into powerful intra-European logistics solutions, the business unit makes sure that goods reach
their destination at the right cost, at the right time, in
the right condition and in the right quantity.
Transocean container flows
Feeder Services
Shortsea Services
IF ALL CONTAINERS TRANSPORTED BY UNIFEEDER IN 2009 WERE PUT IN A ROW,
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UNIFEEDER
ANNUAL REVIEW 2009
2009 IN BRIEF
• Revenues reached DKK 1,905 million and operating profit (EBIT)
amounted to DKK 318 million.
• The number of containers handled has increased from 553,000 TEU
in 1996 to more than 1,236,000 TEU in 2009.
• The acquisition of IMCL, Polands leading feeder operator, expands
network in Poland and the Baltic region.
• Unifeeder’s first office in Russia opened in St. Petersburg.
KEY FIGURES
Thousands
DKK
EUR
1,904,843
255,976
Gross profit
465,039
62,493
EBITDA
321,925
43,261
EBIT
318,112
42,748
Balance sheet total
662,408
89,016
Operating cash flow
304,739
40,951
Revenue
Gross margin, %
24.4
Return on assets, %
48.0
Operating cash flow/EBITDA, %
94.7
1987 we handled
270,000 containers*
2009 we moved
4 times as many
2015 we intend to
handle 3,500,000
Revenue 2009
1.9
Revenues by business unit 2009
Feeder Services, 80%
Shortsea Services, 20%
* TEU.
billion DKK
THEY WOULD STRETCH FROM AARHUS TO NEW YORK.
UNIFEEDER
ANNUAL REVIEW 2009
3
LETTER FROM THE CEO
During the year, we continued our strategic investments in geographic growth,
new products and in our organisational capabilities.
After 30 years of steady expansion, we couldn’t avoid the
impact in 2009 of the deepest economic crisis to affect
the world – and thus global trade – since World War ll.
However, our flexible, asset-light business model limited
the consequences for Unifeeder. It made it possible not
only to better adapt our operations to the prevailing market conditions, it also gave us the competitive advantages
that allowed us to expand in adverse conditions.
Acquisition and organic growth extend our reach
Our acquisition of IMCL, the largest feeder operator in
Poland, expands the Unifeeder network and creates
opportunities and infrastructure in Eastern Europe that we
did not possess before. The acquisition brings us valuable
connections from the main ports in Germany and the
Netherlands to Gdynia, Gdansk and Szczecin in Poland
as well as Riga in Latvia and Klaipeda in Lithuania. This
generates synergies for even more efficient operations and
helps us to better solve customer needs and compete with
higher frequency and quality between the ports within our
enlarged trading area.
The acquisition of IMCL increased the number of ports we
serve. In 2009 we added new connections and services in markets like Sweden, Finland and the Benelux countries as well.
We continue to believe it is vital to offer the most comprehensive and responsive feeder concept in our markets.
Collaboration with our customers
During 2009, we also developed more sophisticated and
effective ways to collaborate with our customers. This
allowed us to create value for both parties at a time when
most customers were fully focused on gaining more flexibility in their cost structures.
In many cases, this collaborative approach has resulted
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UNIFEEDER
ANNUAL REVIEW 2009
in customers outsourcing their operations to us. Naturally,
we are very pleased and proud of this development. We
see it as a confirmation of the quality of service we are
providing in a difficult market.
Ambitious strategy for our Shortsea business unit
Our Shortsea business unit stepped up efforts by rolling-out
a number of initiatives. First and foremost, we intensified
our investments in the market for 45’ containers by making
these specialised transport solutions available in all of our
key markets. For Unifeeder, this expansion is pioneering on
a number of levels. Our approach enables us to open doors
to new markets, customers and volumes. During the year,
for example, we won contracts from blue-chip customers
on a scale we had never seen before. This means there is
a deep and ongoing interest in shifting the transport of
cargo from road to sea which bodes well for our continued
development.
Development of our network
We plan to further increase our customers’ awareness of
the full benefits of shortsea transports and what Unifeeder
can offer. An important part of this work is the development of our network of own offices/in-house representations and agents in existing as well as new regions. In this
respect, our organisation in Eastern Europe, particularly
in Russia and Poland, plays a key role. These markets
offer tremendous potential for the European multimodal
transport sector.
The combination of a large network, economies of
scale and our strong will to grow forms a steady foundation for continued expansion. Moreover, by integrating
the feedering and shortsea businesses we spread risks and
become better equipped to withstand cyclical fluctuations.
Green logistics
In late 2009, the UN Global Climate Change Conference
in Copenhagen generated a lot of environmental attention. Meanwhile, at Unifeeder we continued our everyday
environmental work as a natural part of providing customers with “green logistics”. The core of our offering is
based on solutions that provide the optimal combination
of sea- and land-based transports.
We have a responsibility to ensure that our offering and network create the best possible conditions for
cargo owners aiming to shift their transport from land to
sea. In this spirit, we launched our CO2 Calculator, which
is verified by Det Norske Veritas (DNV), an independent
classification foundation. The calculator enables a simple
comparison of CO2 emission levels for different modes
of transport. The positive response we have received is
gratifying and we see containers on our vessels every day
that testify to the use of this tool.
We also continued to charter tonnage that either
corresponds to or exceeds the International Maritime
Organization’s (IMO) stringent regulations on fuel, emissions and other environmental criteria.
Together with the built-in optimisation in our business
model these are key aspects of green logistics the
Unifeeder way.
Decentralised organisation
Internally, our most crucial step has been evolving the
company’s organisational capabilities to support our
growth agenda and become better equipped to meet
future opportunities.
During 2009, we transformed Unifeeder into a vertically integrated organisation with countries grouped in
regions and more local empowerment. We have initiated a
“
“2010 will demand an intense focus on the competitive
parameters that are of decisive importance.”
series of programmes to attain a high degree of personal
development, involvement and responsibility.
Although we had to adapt the organisation due to the
crisis, Unifeeder had more employees at the end of the
year (270) than in the beginning (205).
The establishment of our own organisation in
St. Petersburg was an important step in the ambition
to strengthen our presence in Russia and neighbouring
countries. The office in St. Petersburg is not just a regional
centre, it is a springboard for continued investments in the
region. Based on the strength of our extensive experience
and strong position in Russia, we want to continue to be
an active, reliable and best in class partner for our customers and other stakeholders in this central part of our home
market.
We are pushing daily to change the DNA of the com
pany with the help of our owners at Montagu Private Equity.
This manifests itself in the ability to manage our organisation with much greater resolve and has given us new
attitudes to risk and action. We do not wait, we act, and
we are now able to totally focus on addressing client needs.
Outlook
No doubt 2010 will be another challenging year for our
customers and thus also for Unifeeder. Despite signals
that point to a stabilisation and renewed growth in world
trade, 2010 will demand an intense focus on the competitive parameters that are of decisive importance for our
business units.
We will continue to focus on our performance as well
as on further partnerships and acquisitions. Our network
will be strengthened and broadened – also geographically – in order to secure additional access to important
distribution channels for our customers. We intend to
be an active participant in the continued and necessary
consolidation of our industry.
Dedication is a core value
Recognising that customer success drives our success, we
created our W1N strategy to establish our core values and
define how to deliver on them. This effort also outlines
our strategy looking forward to 2015. We have to work
at all levels – on the market as well as inside the company – to realise the full potential of our unique culture
and create the best offering in sustainable logistics for our
customers.
This work will be a central focus area for us in 2010
– throughout our entire organisation. The difference that
sets us apart is our dedication. I am both inspired and
gratified by the loyalty and resolve I see throughout the
company. I am convinced that it will lead to strong, longterm customer relationships and an even stronger, focused
and attractive Unifeeder.
Aarhus, May 2010
Sincerely,
Jesper Kristensen, CEO
5
BUSINESS MODEL AND STRATEGIES
Strategies
Looking forward, Unifeeder is set to leverage its leading position to grow sales and profits for
both business units. To do that we aim to create the same strong brand identity for our
Shortsea business unit as our Feeder business unit enjoys. That also implies a redefinition of
the Unifeeder brand to a broader logistics oriented profile.
Scalable and asset-light business model
Scalability is a key feature of Unifeeder’s business model.
By chartering vessels it is possible to quickly adjust capacity
to changing demands. This flexible approach limits risks
and lowers capital expenditure, all while enabling consistently high capacity utilisation, which is crucial to profitability. As in all transportation increasing scale results in lower
average unit costs.
W1N program supports strategy
Unifeeder has launched W1N which is a comprehensive
program designed to facilitate the achievement of the
goals for 2015. It encompasses internal aspects and dayto-day improvements as well as measures to support the
strategic development of the company.
By embracing the following values the entire organisation contributes towards achieving Unifeeder’s objectives:
W1N
•
•
•
•
We are dedicated to serving our customers
We are committed to continuous improvement
It is all about people
We dare to take responsibility
Unifeeder has competitive advantages in its scalable
business model and the quality and efficiency of its dayto-day operations. The combination of these advantages
and the guidance provided by the four values increases
the probability of attaining our goals in time.
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UNIFEEDER
ANNUAL REVIEW 2009
• Geographical
expansion
• Further development of our
Shortsea business
• Co-operations
• Increased
outsourcing
FOUR STRATEGIES
Geographical expansion
Unifeeder will continue to take advantage of geographic
growth opportunities in both its business units. Whether
it’s in Eastern Europe, Russia, the UK or further south in
continental Europe, we focus on leveraging our capabilities and scale advantages into new areas. The foundation
for future growth in Eastern Europe was laid with our
acquisition of IMCL, the leading feeder service provider in
Poland. And the recently opened office in St. Petersburg is
a stepstone for further expansion into Russia.
Co-operations
Additional growth via partnerships will take place in many
ways, including vessel sharing, virtual joint ventures, slot
swaps and other solutions that profit on economies of
scale for mutual benefit.
Unifeeder will continue to develop and offer – in close
co-operation with our clients – tailormade partnership
models, that will leverage on Unifeeder’s network, scale
and expertise to give our customers reduced costs, better
competitiveness, more flexibility and optimal capacity.
By co-operating more with clients we will both deepen
and broaden our services to include those that lie outside
the scope of our present offering.
Increased outsourcing
There are several compelling arguments for outsourcing
feedering. Fluctuations in business make it difficult for
international container shipping lines to match own
resources with demand. Moreover, competition demands
that lines concentrate on their core business, not ancillary
services like feedering. Independent feedering services
providers serve several clients, which makes it possible to
operate on a larger scale and at a more stable and high
capacity utilisation rate. The benefits are then passed on
to our customers in the form of lower prices.
Further development of our Shortsea business
We will further develop our shortsea service offering by
launching new routes, thereby increasing geographic
coverage.
Our door to door business contributes volumes to
the feedering operations at the same time as the feeder
network is a unique asset for the shortsea intermodal
offering. Integration of the business units forms the basis
for healthy synergies. The result is a diversified offering
with more variable costs and greater certainty of earnings.
2015
Some international container shipping lines operate their
own feedering services, so called in-house feedering.
Increased outsourcing represents a large market potential
for an independent feedering service provider such as
Unifeeder.
VISIONS AND OBJECTIVES
Building on a successful past, Unifeeder has set demanding
goals for its business units to be reached by 2015.
Vision for our Feeder business unit
To be the preferred partner and largest feeder operator in Europe.
Our target is to carry 3 million TEU in 2015.
Vision for our Shortsea business unit
To be a leading European multimodal service provider.
Our target is to move 500,000 freight-paying TEU by 2015.
Feeder business unit objectives
To build on our leading market position and expand
market share in our existing territories, enlarge the contents
of our products and grow into new geographies.
We will achieve this by focusing on our core competences of providing our customers with unrivalled service,
frequency, reliability and innovative solutions.
Shortsea business unit objectives
To grow our door to door business through continued
land-to-sea conversion of intra-European transportation and
extend our service delivery with increased multimodality.
We will achieve this by increasing the market awareness
of the competitiveness of an environmentally-friendly and
safe shortsea transport vis-à-vis road haulage and rail.
UNIFEEDER
ANNUAL REVIEW 2009
7
vera rambow
• Vera Rambow is one of the largest vessels chartered by Unifeeder. She was built in
2008, has a capacity of 1,425 TEU and is ice classed for Northern waters. She is one
of 32 vessels in Unifeeder’s fleet. The average age of the fleet is 4.7 years. The sizes
vary between 500-1,500 TEU.
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UNIFEEDER
ANNUAL REVIEW 2009
global trade
The future of feedering is closely connected to the expansion
of global trade, the increasing containerisation of cargo and the
positive environmental and safety aspects of seaborne trade.
containerisation
safety
UNIFEEDER
ANNUAL REVIEW 2009
9
FEEDERING – AN INDUSTRY FOR THE FUTURE
The future of feedering is closely connected to the expansion of global trade, the increasing containerisation
of cargo and the positive environmental and safety aspects of seaborne trade.
The expansion of trade on a global scale
In the last fifty years, trade growth has outpaced increases
in output due to increasingly globalised production processes, growing international trade in parts and components, greater economic integration and the deepening
and widening of global supply chains.
Seaborne transport is the most economical mode
When it comes to international trade, seaborne transport
is the most economical mode of transportation. Today
some 90 per cent of the volume of world trade is transported by sea.
Since transoceanic container shipping has become the
preferred means for efficient and secure global transport,
its development reflects global trade. The recent global
Volume
Global trade outpaces output
3,000
2,500
2,000
1,500
1,000
500
0
50 55 60 65 70 75 80 85 90 95 00 05
Source: WTO International Trade Statistics 2009
Exports
GDP
Index 1950=100
Global trade grew almost twice as fast in terms of
volume as GDP between 1950 and 2008.
economic downturn saw slowing growth in international
seaborne trade in 2008, with volumes eventually decreasing by more than 10 per cent in 2009.
While the global shipping industry faces many shortterm challenges, the fundamental drivers for long-term
growth are firmly in place. The international division of
labour gathers pace and the world’s population continues
to expand. Demand for internationally traded consumer
goods grows as disposable incomes grow and consumer
preferences become more sophisticated.
Containerisation is shaping international trade
The term “containerisation” refers to the industry-wide
evolution of a comprehensive, intermodal transport system
based on standardised containers.
Containers were introduced in the international trades
in the 1960s – forever changing the way international
cargo was transported. The container transport share of
the world’s total dry cargo market increased from 5 per
cent in 1980 to 25 per cent in 2008. For break-bulk cargo
the degree of containerisation is considerably higher. Vessel loading/unloading time has shrunk to one twentieth of
the time needed during the previous break-bulk era as a
direct result of containerisation.
Containerisation means cost and supply chain optimisation, more flexible and faster delivery and, by reducing
handling, minimises breakage and pilferage. The costefficient transport of both consumer and capital goods
that is taken for granted today is made possible through
the extensive use of containers.
Containerisation will continue to be the driving force
behind change in all modes of transport due to its intermodal capabilities: Sea, rail and road. The competitiveness
of any part of a transport chain – ships, ports, terminals,
warehouses, trucks and inland distribution – will depend
on its capacity to integrate container handling.
Large economies of scale in container transport
Practically all links of the global container transport chain
enjoy large economies of scale, shipping and ports being
the two most prominent examples. Average unit transport
costs fall with distance but also in response to ship size.
The quest for economies of scale has led to ever larger
ships. As capacity utilisation holds the key to profitability
the largest ships can only be economically deployed in
transocean traffic while smaller vessels are used on intracontinental routes.
The evolution of the port industry has mirrored that
of ships. The fixed element of port costs represents a
substantial share of total costs.
These mutually reinforcing trends in the shipping and
port industries have been powerful drivers behind the
emergence of large dedicated transshipment ports and a
subordinated network of smaller ports – a hub and spoke
system.
Hub and spoke ports and transshipment
In a hub and spoke system all traffic moves along spokes
connected to the hub at the centre. The hub is represented by ports or terminals with the capacity to serve the
largest international container ships with capacities of up
to 15,000 TEU.
As the economics of operating these ships depend
on fewer port calls with shorter turn-around times, the
number of ports they can call have decreased. Traffic is
concentrated to a few ports where goods will have to be
discharged and then loaded onto smaller vessels, known
as feeders that call smaller ports. From there, the goods
Sources: Review of Maritime Transport 2009, UNCTAD. International Trade Statistics 2009, WTO. Trade Policy Commitments and Contingency Measures, WTO Report 2009. The North European Maritime Container Feeder Market, Vinnova 2002.
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UNIFEEDER
ANNUAL REVIEW 2009
MARITIME HUB-AND-SPOKE SYSTEM
are often further distributed by rail or truck to their final
destinations – and vice versa. This development leads to
increasing demand for feeder services between the main
hubs and smaller regional or local ports.
Tightening emission requirements
As the world community grows increasingly sensitive to
the environmental threats posed by transport in general
and the use of fossil fuels, environmental regulation
is tightened for seaborne transports as well. Its overall
carbon footprint relative to other transports is low and
the emissions of pollutants, such as nitrogen oxides and
sulphur oxides, are subject to strict industry controls.
IMO watches over the seas
The International Maritime Organization (IMO) is the
United Nations’ special agency responsible for the safety
of shipping and prevention of marine pollution by ships
and vessels. In 2008, IMO adopted amendments to preexisting regulations in order to reduce harmful emissions
from shipping. The limit applied for Sulphur Emission
Security – cargo and the supply chain
A number of regulations and voluntary programs have
been implemented throughout the supply chain to
improve the security of cargo moving internationally.
Mandatory electronic advance cargo data reporting
requirements for imports into the EU as well as for certain
goods exported from the Community are now scheduled
to become effective on December 31, 2010.
International container ships and feeder vessels are
required to electronically provide customs authorities
with information on goods prior to import to,
or export from, the EU.
DE
MA HINA
IN C
Environment
Shipping by sea is an efficient and safe means of transport. In addition, it has long been considered the most
environmentally friendly mode. One of the main advantages is that it occurs far from congested housing areas
and requires a minimal amount of energy, in relation to
the amount of cargo transported.
In terms of greenhouse gases, the emission levels
resulting from seaborne transports are among the lowest
of any commercial transport mode. At 10 – 15 grammes
per tonne-kilometre, it is lower than rail (20 – 40 g/tkm),
trucking (50 – 90 g/tkm) and aviation (670 – 870 g/tkm).
Control Areas (SECAs) will be reduced from its current
level of 1.5 per cent to 1.0 per cent, effective 1 July 2010,
and further reduced to 0.1 per cent, effective 1 January
2015. The Baltic Sea Region was the first region in the
world proclaimed a SECA and also the first region to
which the new, tougher regulations apply.
Conclusion
The feedering industry derives its growth from trends that
shape international container shipping. The suitability
of seaborne transport for international trade, its economies of scale and the continued superiority of seaborne
transport in general over land transports when it comes to
environmental impact and safety aspects, indicate healthy
prospects for the feedering industry.
UNIFEEDER
ANNUAL REVIEW 2009
11
BUSINESS UNIT
FEEDER SERVICES
As Northern Europe’s largest feeder specialist, Unifeeder serves the large, international container shipping lines
by linking transshipment hubs with smaller ports in the Northern European and Baltic region.
Geographic market
Unifeeder’s geographic market is the Northern European
and Baltic region. It includes fifteen countries and stretches
from Great Britain at the Western edge of the North Sea
to Russia at the Eastern rim of the Baltic Sea.
The cargo flows will necessarily vary over time which
means that in-house feedering is subject to swings in
utilisation ratios. As an independent operator that serves
many clients Unifeeder can turn this into an advantage by
combining cargoes.
elsewhere. Via a network of subsidiaries and agents using
EDI connections and online, real-time schedules, Unifeeder
provides flexible services with the ability to adjust capacity
and scheduling, all to deliver the shortest transit time to
and from the large ships of our customers.
Market size and structure
Measured as total throughput in the Northern European
hubs, primarily Hamburg, Bremerhaven, Rotterdam and
Antwerpen, the market in 2008 was 46 – 47 million TEU,
of which transshipment was 15 million TEU. The ten
largest ports in the region handled some 80 per cent of
container volumes.*
Most of the container volumes are handled in
Germany, the Netherlands, Belgium and Great Britain. To
Unifeeder, flows between Hamburg/Bremerhaven/Rotterdam and the Nordic region and the Baltics are important
and so is the flow between the British Isles and Rotterdam.
Revenue model
In general, Unifeeder enters into framework agreements
with its larger customers for a period of between six
months and three years with one year being the typical
period. Approximately 80 per cent of the annual revenue
is under framework agreements.
Under these agreements, Unifeeder specifies prices
conditional to certain volume ranges, and the customer
indicates expected volume over the coming period or
nominates Unifeeder for a certain share of traffic for a
certain period.
Bunker clauses are included in the agreements allowing Unifeeder to adjust prices for changes in fuel prices.
Outer regions
Unifeeder is the market leader
Unifeeder estimates that the Northern European feedering
market is evenly split between international container
shipping lines’ in-house feedering and independent operators, such as Unifeeder. Unifeeder is the largest operator
with the broadest coverage in the Northern European
market.
Unifeeder’s clients
Unifeeder has long standing relationships with all the
international container shipping lines. As an independent
feeder services provider Unifeeder brings many advantages to its clients. Serving several customers means that
Unifeeder can make the best use of vessels and network.
*
12
The regional ports in Northern Europe – especially in the
Nordic countries and the Baltics – are scattered and handle
relatively small flows of cargo. There are often large imbalances between imports to and exports from these ports.
To the consumers and producers in the regions that depend on these ports, Unifeeder’s network means efficient
access to world markets.
Safe and secure handling of information
World-class logistical software and 30 years of experience
ensures the safe and secure online handling of booking
and order confirmations, notices of loading and delivery,
invoicing and payment.
The Offering
Scheduled calls to smaller regional ports
New and modern fleet
Working on fixed schedules, Unifeeder’s vessels provide
rapid service from large hubs to an array of regional ports.
Any type of containerised cargo can be carried including
refrigerated containers, tank containers, out-of-gauge
units, or dangerous (IMDG) goods.
Unifeeder’s fleet is tailor-made for Northern waters and
classified to the highest standards. As per 31 December
2009, 32 vessels were under charter with capacities of
500 to 1,500 TEU.
High service and flexibility
The Unifeeder network guarantees dependable links to
more than 30 locations throughout Northern Europe.
Based on a Master Schedule, daily calls are made on the
busiest routes and frequent, fixed-day services are offered
2009 in review
The severe downturn of world trade had repercussions
on the market for feedering. Unifeeder’s volumes fell by
23 per cent. However, by virtue of its scalable business
model Unifeeder was able to quickly adjust to the market
conditions.
In order of size: Rotterdam, Hamburg, Antwerpen, Felixstowe, Bremen/Bremerhaven, Dublin, Southampton, Zeebrugge, London and Liverpool/Mersey.
UNIFEEDER
ANNUAL REVIEW 2009
CUSTOMERS
Unifeeder has a strong and stable
customer base comprising all of the
international container shipping lines.
The acquisition of IMCL in 2009 was a strategic move
that gives Unifeeder complete coverage of the Baltic Sea
region. IMCL is the leading feeder services provider in
Poland. Combining current long route destinations from
Germany and the Netherlands to Finland, Russia and
the Baltics with short routes to and from Poland yield
substantial synergies. IMCL has offices in Gdynia and is
represented in Gdansk and Szczecin.
The Feeder division succeeded in building business for
the future and expanding into new geographies, which
provides valuable diversity and lowers vulnerability.
Numerous long-term contracts with customers were
entered into during 2009.
Outlook
Unifeeder is confident that it can continue to gain market
share in 2010 as the international container shipping lines
will continue to outsource feedering in order to focus on
their core business. Demand is picking up but from low
levels. The subdued conditions tend to favour operators
like Unifeeder that are reliable, experienced and well
regarded, with a network second to none.
• APL
• Hyundai
• China Shipping
• K-Line
• CMA/CGM
• Maersk Line
• Cosco
• MOL
• CSAV
• MSC
• DAL
• NYK
• Evergreen
• OOCL
• Hanjin
• UASC
• Hamburg Sud
• Yang Ming
• Hapag-Lloyd
• ZIM
Unifeeder´s Feeder volumes 1987 – 2009
Thousands
1 800
1 600
1 400
1 200
1 000
800
600
400
200
0
87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09
TEU
KEY DATA 2009
Revenues, DKK (thousands)
Number of employees
TEU, handled
1,522,711
178
1,110,360
Unifeeder’s goal is to handle 3,000,000 TEU in 2015. The drop
in 2009 reflects the economic downturn of global trade. It was
the first fall in volumes ever for Unifeeder.
UNIFEEDER
ANNUAL REVIEW 2009
13
SHORTSEA BRINGS RELIEF TO EUROPE
Due to its efficiency and environmental friendliness shortsea transport is in a position to take over
from road transport as the favoured mode for intra-European trade.
Crucial to European competitiveness
European competitiveness is struggling with a number of
challenges. Between 1995 and now, freight traffic in the
Community increased by almost 40 per cent. This has led
to congestion in the land-based networks, undermining
the reliability of industrial supply chains and endangering
the environment.
Shortsea transport is a natural solution to many of the
transport problems facing business, national governments
and the EU. The main advantages of shortsea transports
are that it:
– promotes European trade competitiveness
– enables multimodality
– maintains vital transport links
– decreases unit cost of transport
– relieves congestion from land based networks
– facilitates Eastern European integration
At present, 39 per cent of all ton-kilometres in the EU are
moved via shortsea transport, while road transport accounts
for 44 per cent, other modes making up the rest.
The development of shortsea transport is supported
by several political initiatives on the national and EU level,
such as the 2003 EU Programme for the Promotion of
Short Sea Shipping.
Shortsea transport and multimodality
It is important to see shortsea transport in relation to the
total supply chain. Increasingly, efforts are channelled
towards holistic solutions that optimise the whole rather
than each part.
Shortsea is a key enabler of multimodal transport
chains – the use of more than one mode of transport in
an integrated manner in order to complete a door to door
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UNIFEEDER
ANNUAL REVIEW 2009
sequence. This approach makes it possible to utilise the
available transport capacity more rationally through various combinations of sea, rail and road – which individually
cannot provide a door to door service as effectively.
Containerisation supports multimodality
The development towards multimodal transport chains
depends largely on the ability of the links to interact efficiently. Containerisation is the key to highly efficient transport as containers can be carried by all vehicles: vessels,
trains and trucks. Handling equipment has been designed
with this in mind, enabling the easy transfer of containers
between sea, rail and road.
Containerisation in Europe has gained further momentum through the increased adoption of the 45´ container
which has two major advantages: It provides for more
rational loading of Euro-pallets than the international ISO
containers (thus also saving a significant amount of CO2
emssions) and it does not require new vehicles or expensive adaptations of existing carriers.
Drivers of shortsea transport
The future for shortsea transport lies in a structural shift
from road transport to sea that is driven by considerations
on many levels in society.
For the manufacturing industry shortsea transport
increasingly serve as an “extended conveyor belt” due
to its effiency, flexibility and reliability. Transports and
schedules are designed to make the cargo arrive or leave
at the place, at the time and in the quantity needed. The
advantages of seaborne transport, in terms of quality, reliability and transit time are substantial in regions plagued
by traffic bottlenecks, accidents, urban congestion and
border crossings. Yet another advantage is that seaborne
goods can be kept under surveillance more effectively
than cargo carried by trucks. This transport mode offers
a much higher degree of security when it comes to the
integrity of the cargo.
Europe, in general, has enough density to enable
deployment of relatively large vessels that provide scale
economies in terms of operating and capital cost, while
still offering sufficiently high service frequency to be competitive with trucking.
On the macro level, seaborne transport should be seen
as an integral part of a sustainable transport system that
eliminates much of the social costs now associated with
the over-burdened European road network.
Environmental considerations are increasingly favouring marine transportation systems as a replacement for rail
and road modes. On a per-ton basis, marine transportation is far greener and far cleaner than any other mode.
External effects for trucking include costs for highway
maintenance, air pollution, congestion, noise in urban and
protected areas, accidents and loss of life.
The dynamics of the Baltic Sea Region
Also and more specifically for Europe, shortsea may be seen
as an instrument to promote economic integration through
intra-European trade, not least of the Baltic Sea Region (BSR).
The BSR is a heterogeneous region with respect to
its economy, population, resources and structures. There
are two groups of states in the area today: the countries
with long-standing market economies (Denmark, Finland,
Germany and Sweden); and countries with transitional
economies (Estonia, Latvia, Lithuania, Poland and Russia).
The long-term growth potential for the latter group
of countries is most likely higher than the average for the
EU as a whole. Structural differences in capital and labour
endowments will stimulate trade flows between East and
West for the foreseeable future.
The process of the emerging economies catching up with
the more mature, leading eventually to a convergence in
terms of material standards, will demand well functioning
infrastructure and transport systems. This development
strongly supports the long-term prospects of shortsea
transport in the region.
Baltic
Sea
Region
Intra-European transport modes 2009
Shortsea, 39%
Road, 44%
Other, 17%
Sources: Modernising European Shortsea Shipping Links. European Commission Directorate General for Energy and Transport 2006. European transport policy for 2010: Time to decide. European Commission.
UNIFEEDER
ANNUAL REVIEW 2009
15
BUSINESS UNIT
SHORTSEA SERVICES
Unifeeder offers shortsea door to door transport solutions based on full intermodality. The network
extends into Europe and integrates road, rail and barge transport with our feeder vessels to offer
an effective, affordable and environmentally friendly alternative to trucking.
RAUMA
OSLO
BREVIK
LARVIK
GRANGEMOUTH
The market
Geographically the market for Unifeeder’s shortsea services
stretches from Ireland in the West to Russia in the East
and from South of the Alps to the Norwegian fjords.
Since seaborne transport can replace or complement
other transport modes, especially trucking, the market
potential for our door to door offering is substantial. At
present it is estimated that seaborne transports account
for approximately 40 per cent of all intra-European trade
which is slightly lower than that of road transport.
Clients
The customer base today comprises some 700 international industrial companies demanding transport solutions
for punctual, intra-European movement of goods.
The Offering
Individual solutions
Unifeeder’s fully intermodal network offers individual customer solutions and the ability to carry large amounts of
full-load containerised cargo on a regular schedule including daily service to a wide range of destinations in Europe.
Own equipment
Unifeeder sources its own containers and puts them at the
customers’ disposal. All types of containers can be hand
led including 20’ and 40’ dry containers, 40’ high-cube
containers and Unifeeder’s own 45’ containers.
Just in time
Clients have come to trust Unifeeder’s door to door solutions for its reliability and its capacity to deliver just-intime. Unifeeder tailors solutions to suit individual needs as
required using its dense network and frequent services.
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UNIFEEDER
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BELFAST
Green logistics
Unifeeder substitutes sea links for road routes wherever
practical, an approach that is widely supported by international and local political groups, as well as maritime
forums and related organisations. We also provide a unique,
online CO2 Calculator that is verified by Det Norske Veritas
(DNV) and which lets our customers determine the exact
level of savings in emissions for a given transport route.
2009 in review
During 2009 Unifeeder increased efforts to raise its
customers’ awareness of shortsea services in general and
more specifically those provided by Unifeeder. This was
made in parallel with the expansion of its geographical
reach and product offering.
A good example is the new 45’ container which is
fast becoming an effective tool to secure new cargo for
shortsea transportation. This helps us focus aggressively
on a number of desirable clients by giving them exactly
the transport solution they require. At the same time we
help them take cargo off the road and get it on board a
vessel for better overall economics and lower emissions.
Unifeeder also continued to focus on key clients and
key partnerships to emphasise its commitment to finding individual solutions for clients throughout the entire
network.
Outlook
Unifeeder is confident that it has an attractive offering
and that it is well positioned to benefit from the gradual
shift from overland transports to seaborne transports.
KRISTIANSAND
SOUTH SHIELDS
TEESPORT
DUBLIN
IMMINGHAM
CORK
MOSS
FREDRIKSTAD
HALDEN
GOTHENBURG
HALMSTAD
AARHUS
FREDERICIA
HELSINGBORG
MALMÖ
COPENHAGEN
HAMBURG
GDYNIA
BREMERHAVEN
FELIXSTOWE
ZEEBRUGGE
HAMINA
KOTKA
HELSINKI
ST. PETERSBURG
STOCKHOLM
GÄVLE
ROTTERDAM
ANTWERP
SZCZECIN
TALLINN
RIGA
KLAIPEDA
KALININGRAD
GDANSK
Managed from Aarhus, Denmark, Unifeeder operates
in Austria, Belgium, Czech Republic, Denmark, Estonia, France,
Finland, Germany, Ireland, Italy, Latvia, Lithuania, Norway,
Poland, Slovakia, Russia, Sweden, the Netherlands and the UK.
Our vision is to be a leading European multimodal service provider
CUSTOMERS
With broad coverage and more than 20 years of experience in door
to door services, Unifeeder has become the provider of choice for
many transport professionals throughout Europe.
KEY DATA 2009
Revenues, DKK (thousands)
Number of employees
Containers handled, TEU
382,132
92
119,405
• Avebe
• General Motors
• Interbulk
• J.F. Hillebrand
• Bruhn Spedition
• ICA
• Continental
• Kelloggs
• DB Schenker
• Kronos Titan
• Dow Chemicals
• Mars
• DuPont de Nemours
• Nokian Tyres
• Ford Motor Co.
• Tradall/Martini
Unifeeder´s Shortsea volumes 1987 – 2009
Thousands
180
150
120
90
60
30
0
87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09
TEU
Unifeeder’s goal is to move 500,000 freight-paying TEU by 2015.
UNIFEEDER
ANNUAL REVIEW 2009
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Due to its efficiency and environmental friendliness shortsea
transport is in a position to take over road transport as the
preferred mode for intra-European trade.
efficiency
environmental friendliness
intermodality
UNIFEEDER
ANNUAL REVIEW 2009
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WHEN COOL HEADS HANDLE HOT STUFF
• THE CHALLENGE
How do you keep some 15m3 of vegetable oil at a
constant temperature of 65 degrees Celsius on a
chilly sea-journey stretching from Northern Belgium
to the middle of Sweden? And how do you keep the
purpose-built containers returning to the loading
point?
The special containers (supplied by a third party)
are designed to carry bulk commodities such as
grains, oils and chemical products, often in liquid
form. This means they cannot be transported and
handled like standard containers.
Transporting valuable cargoes and tank & bulk
containers efficiently and safely demands an exceptional solution in terms of regularity, service, coverage and flexibility. Not to mention the constant
care required to properly handle the equipment
onboard vessels.
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UNIFEEDER
ANNUAL REVIEW 2009
• THE SOLUTION
To meet this challenge, we put our full expertise and
resource depth to work: A tailor-made, high-frequency
and geographically complete network is combined
with specially equipped vessels and a separate team
of dedicated and experienced staff to create a potent
solution.
This unique approach, supported by crucial booking and surveillance systems, ensures that the special
needs of the Tank & Bulk container segment are met.
• THE RESULT
For more than a decade, Unifeeder has successfully
moved valuable and sensitive cargo for not only the
food and chemical industries but numerous other
industries as well.
Manufacturers in all industries can safely source
sensitive raw materials and intermediate products
where suppliers offer the best terms. They understand that they can totally rely on Unifeeder for safe
and cost-efficient transports that ensure delivery of
their cargo in the right condition and at the right
time.
Unifeeder carried almost 20,000 of these units in
2009 – up 20 per cent from 2008, despite the financial
turmoil. We continue to invest in systems and specially
trained staff to properly handle these demanding
container flows.
EXTENDED CONVEYOR BELT – JUST IN TIME
• THE CHALLENGE
To work closely with an appointed logistics partner,
DB Schenker, to supply a global auto manufacturer
with a solution for just-in-time deliveries of Completely
Knocked Down (CKD) car parts made in Central
Europe to the final-assembly plant in Russia.
Full visibility and traceability would also be necessary to facilitate the specially paced movement of the
parts. In addition the customer insisted on deliveries
several times a week, rigid timetables, contingency
plans and the best possible transit times.
QUICK FACTS: DB SCHENKER
• Founded: 1872
• Headquarters: Essen, Germany
• Industry: Cargo logistics & transport specialist
• Type: State-owned
• Turnover: € 11.3 billion
• THE SOLUTION
Solving this challenge demanded an entirely new
level of multimodality in terms of scheduling and
co-ordination between trains and vessels. This “extended conveyor belt”, allows for up to six weekly
trains operated by DB Schenker to connect European
base ports with Unifeeder’s vessels delivering directly
to St. Petersburg four times per week.
Each container, train connection and vessel schedule
requires 24/7 supervision and monitoring to meet
deadlines and to ensure the constant availability of
the needed capacity, based on production forecasts
and detailed contingency plans.
• THE RESULT
This unique co-operation has been running successfully for more than four years and has been continuously fine-tuned, developed and adjusted to adapt to
the customer’s increasing requirements.
The result is a seamless, environmentally-friendly
transport that combines DB Schenker’s European rail
and logistic services with Unifeeder’s network – bringing the right amount of auto parts to the assembly
lines just-in-time.
This solution is made possible thanks to partnership with DB Schenker Air & Sea Division.
• Employees: 57,000
• European land transport volume (thousands t): 70,052
• Air freight volume (thousands t): 1,032
• Ocean freight volume (thousands TEU): 1,424
UNIFEEDER
ANNUAL REVIEW 2009
21
OUR TOOLS
Our Feedering and Shortsea business units both rely on our network for their operations. The network
is not only points of departures and arrivals – it is the combination of routes, vessels and our people’s
logistics expertise and experience into powerful solutions for our customers. IT is a vital tool in all
phases – from bookings to the optimisation of schedules and stowing.
People
The importance of our 270 employees for addressing
customer needs and the efficient and safe handling of
cargo and equipment cannot be overstated. We strive for
a culture permeated by dedication and competence and
take measures accordingly (page 29). Our people know
how to make the best use of our tools.
Network
The interconnectivity and flexibility of our network makes
it possible for our vessels to serve more than 30 ports on
a daily basis and make 6,500 yearly port calls. It is the
continuous improvement, optimisation and round-theclock management of the network that makes it possible
to meet the demands of a market in constant change.
Vessels
We charter all vessels and lease containers. That way our
equipment is always up to the assignment.
The vessels are purpose-built for the region’s sometimes icy waters. At year-end 2009, 32 new and modern
vessels sailed under the Unifeeder flag. The average age of
the vessels is 4.7 years and their capacity ranges from 500
TEU to 1,500 TEU, with an average capacity of 871 TEU.
Containers
Containers basically come in three sizes: 20´, 40´ and 45’. The
20´ container, referred to as a Twenty-foot Equivalent Unit
(TEU) is the industry standard reference for cargo volume.
The container is 6.10 m long and has a volume of 38.5 m3.
The 40´ container – literally 2 TEU – became known as
the Forty-foot Equivalent Unit (FEU) and is the most
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ANNUAL REVIEW 2009
frequently used container today. The 45’ container is
changing the face of modular transportation in Europe.
It has been accepted by the European Commission for
the trans-European transportation of goods and is fully
compliant with EU directives. It enables an increase in
the cargo trailer transport load against a 40’ standard
container.
All containers have a unique combination of letters and
figures so that they can be traced anywhere in the world.
IT
Unifeeder’s IT systems are an integrated part of daily work
and are becoming increasingly important in our relationships with both customers and suppliers.
We have one common, real time IT platform for the
whole company, which enables us to quickly adapt to
operational changes such as acquisitions, new routes, new
offices etc. Our IT infrastructure is using the newest technology and we are in the process of upgrading the most
business critical systems to keep on top of the development in the business.
Unifeeder’s IT systems support our 24/7 operations,
with the clear aim of providing a high level of service for
all users – internal as well as external – at all times.
To ensure fast and efficient communication, we have
direct connections with most of our customers, ports,
terminals and authorities throughout the region. This gives
a constant flow of information about the many container
movements. Through our EDI connections, we handle
more than 5,000 transactions every day, each one of
which makes work easier for both our business partners
and Unifeeder.
people
IT
vessels
containers
24/7
PEOPLE, IT, VESSELS AND CONTAINERS ARE OUR TOOLS
UNIFEEDER
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WORLD’S MOST POPULAR SUITCASE
Ship it in a box. That’s how US entrepreneur Malcom McLean reasoned back in 1956 when he
developed the metal shipping container. Little did the “father of containerisation” realise that
his idea would today be used to transport 2 billion tonnes of freight in EU ports annually.
It seems that nothing can contain the container.
45’
WEIGHT SPECIFICATIONS
Maximum Gross Weight
34,000 kg
Maximum Payload
29,740 kg
Tare Weight
4,260 kg
INTERNAL DIMENSIONS
Length
13.55 m
Width
2.44 m
Height
2.69 m
Height door opening
2.59 m
Cube capacity
89.20 m3
PALLET INTAKE
EUR (80 x 120) pallets
33 pallets
UK (100 x 120) pallets
26 pallets
OUR 45’ PALLET-WIDE CONTAINER CARRIES FIVE MORE FEET OF NORTHERN EUROPE
Unifeeder’s new 45’ container is the future for transporting palletised consumer products and lighter-weight
cargoes. Tailored specifically for our door to door customers it helps get more trailers off the road and thereby
reduces CO2 emissions per consignment. One 45’ unit carries eight pallets more than a standard 40’ container.
UNIFEEDER
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ENVIRONMENT IS A TOP PRIORITY
At Unifeeder, preserving the environment is not only one of the driving forces of our existence, it’s also a key part of our business concept.
We actively promote the modal shift from road to sea with its capacity to reduce fuel consumption and emissions per tonne-kilometre.
With the fragile Baltic basin as one of our main arenas we’re doing everything possible to lower impact everyday.
WITHIN UNIFEEDER
All Unifeeder vessels must meet the highest
standards of safety and classification. The
chartering of newer and larger vessels is
yielding lower fuel consumption and CO2
emissions per transported unit. In addition
emissions of nitrogen oxides and sulphur
oxides are reduced by the use of low-sulphur
bunker fuel in accordance with the MARPOL
convention’s stipulations.
Onboard environmental precautions
include zinc-free, antifouling paint below
the waterline, no storage of fuel in the
double bottoms, and advanced waste treatment and waste separation systems. Sludgeand waste-handling agreements are in force
for all Unifeeder vessels in all ports.
Unifeeder training programmes for
cargo handling, including dangerous (IMDG)
goods, ensure that all national and international regulations are followed. Special
“European Emergency Response Systems”
for customers with IMDG cargo, ensure
communication, around the clock, between
Unifeeder, shippers and consignees.
MARPOL is short for Marine Pollution. Conventions
are negotiated within the IMO framework.
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UNIFEEDER
ANNUAL REVIEW 2009
FOR OUR CUSTOMERS’
SUSTAINABILITY
Our customers increasingly appreciate the
environmental advantages of our services.
Unifeeder helps them reduce their carbon
footprint, while providing lower logistical
costs. Companies of all sizes are opting to
use more shortsea door to door transport.
The broad environmental appeal of our
door to door offering has become increasingly apparent.
Unifeeder has introduced an online CO2
Calculator for its shortsea activities that
puts verifiable figures on routes that emit
the least amount of CO2.
INTERNATIONALLY
The International Maritime Organization
(IMO) is the United Nations’ special agency
responsible for the safety of shipping and
prevention of marine pollution by ships. IMO
may designate certain areas A Particularly
Sensitive Sea Area (PSSA). PSSA is an area that
needs special protection through action by
IMO because of its significance for recognised
ecological or socio-economic or scientific
reasons and which may be vulnerable to damage by international maritime activities.
When an area is approved as PSSA, specific
measures can be used to control the maritime activities in that area, such as routeing
measures, strict application of discharge and
equipment requirements for ships, such as
oil tankers; and installation of Vessel Traffic
Services (VTS). The Baltic Sea area, Denmark,
Estonia, Finland, Germany, Latvia, Lithuania,
Poland and Sweden was designated PSSA in
2005 and a Sulphur Emission Control Area
(SECA) in 2008.
Unifeeder adheres to IMO regulations and
other international and national regulations
and even exceeds its requirements in certain
respects.
Unifeeder has introduced an online CO2 Calculator for its shortsea activities that
puts verifiable figures on routes that emit the least amount of CO2. This enables
companies to directly calculate the CO2 emission savings that can be made by a
shift from road transportation to shortsea transportation. Companies of all sizes
are opting to use more shortsea door to door transport.
CO2 CALCULATOR
UNIFEEDER
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27
11 offices
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UNIFEEDER
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12 NATIONALITIES
270 employees
CORPORATE SOCIAL RESPONSIBILITY
Our future success depends heavily on attracting and developing the right people. This is particularly
true as we strive to offer even better service to our customers while expanding further the shortsea
business. The ambition is to develop a diverse, quality-oriented corporate culture with opportunities
that ensure that our people are highly motivated and aligned to our strategic objectives.
Investment in Corporate Social Responsibility
During the year, we continued to invest in an upgrade of
our organisation with a healthy mix of experiences,
nationalities and demographic backgrounds. Management
also focused its attention towards building a strong
corporate identity.
In line with our CSR strategy, we strive to continuously
develop our people by focusing on quality, providing new
opportunities and promoting diversity. We are an equal
opportunity employer.
A diverse international company
While our roots are in Denmark, it is safe to say that
Unifeeder is today a truly international logistics company.
At the end of 2009, we had 270 employees coming from
12 different countries.
Management development
Unifeeder’s leadership programme is working with the top
management of the company to develop leadership skills
on an individual level. Through workshops and individual
coaching sessions, we are striving to further strengthen
the management team. The programme is closely linked
to the CSR strategy and fulfils a key function in aligning
our employees to our strategic objectives.
Talent development
In connection with our focus on a quality-oriented culture,
we are improving our talent pool by ensuring that the best
person for a given job is employed throughout the organisation – irrespective of geography. During 2009 more than
five per cent of our employees took the opportunity to
join a team of colleagues at different offices than their
home office to assist with specific tasks for a longer or
shorter period.
We encourage a Swede to go Poland, or a Dane to go
to Rotterdam, if we believe this benefits both the office
and our talents. This allows us to become a more effective
player both locally and internationally, still staying small
enough to be quick and agile.
Health and safety focus
On the high seas and in ports, there is always a health,
safety and environmental risk. We take this seriously
and have formulated clear HSSE policies (Health, Safety,
Security, Environment) that serve as guidelines for both
our employees and business partners. The policies reflect
our aim to provide stringent health and safety information
throughout our organisation as well as to our partners in
the shipping, rail and trucking industries. We work actively
with our suppliers to ensure they live up to our HSSE
standards.
Female and male employees
Male, 56%
Female, 44%
Employees by country
In the future - beyond rules and regulations
Unifeeder obviously respects and adheres to all national and
international rules, regulations and codes within the CSR
area. We also endeavour to co-operate with educational
institutions in many of the countries where we are located.
The purpose is to facilitate the access of students to traineeships and later on job possibilities while at the same time
linking possible talents to our organisation.
We also take our responsibility for the surrounding soci-Operating income
Profit/loss after
ety seriously by regularly supporting and engaging ourselves
net financial items
in non-profit organisations and social/cultural institutions.
Denmark, 31%
Poland, 10%
Germany, 21%
Sweden, 6%
Netherlands, 12%
Finland, 5%
Russia, 12%
Norway, 3%
Shortsea Service Door-to Door, 15%
Container Feeder Service, 85%
UNIFEEDER
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BOARD OF DIRECTORS
HENRIK VON SYDOW, CHAIRMAN
PETER DAHLBERG
JESPER KRISTENSEN
Born: 1952
Born: 1975
Born: 1967
Board member since: 2010
Education: B.Sc. in International Finance and Business
Administration from Gothenburg School of Economics.
Education: Master of Laws degree and a M.Sc. in Business
Administration from Stockholm University.
Background: Director of Corporate Strategy and Head of
International Freight of Kerry Logistics (2007-2008), CEO of
Baltrans Holding (2006-2007), CEO of Wilson Logistics (19912004).
Background: Responsible for the Nordic region at Montagu
Private Equity (2004-present), Deutsche Bank (2002-2004),
founded, managed and sold a number of companies in
Sweden (1996-2002).
Education: Graduate Diploma in Business Administration
(Foreign Trade) from Aarhus School of Business and ADP from
London Business School.
Supervisory board positions: Independent advisor and
board member for companies in a number of sectors including international logistics and internet technology.
Supervisory board positions: Board member of Logstor A/S
and Montagu Private Equity LLP.
CHRISTIAN RASMUSSEN
KNUD STUBKJAER
Born: 1976
Born: 1956
Education: M.Sc. in Applied Economics and Finance from
Copenhagen Business School and CFA Charterholder.
Education: A.P. Moller-Maersk Shipping Academy, IMD
Switzerland.
Background: Investment Director of Montagu Private Equity
(2007-present), Associate in the Investment Banking Division
at Morgan Stanley in London and New York (2003-2007).
Background: CEO of E.R. Schiffart (2008-present), numerous
positions at A.P. Moeller-Maersk (1977-2008) including
Partner and member of the executive board of A.P. MoellerMaersk (2000-2008), Head of Worldwide Liner Activities
(1999-2008), Head of Maersk Line United Kingdom, President
of Maersk K.K. Japan and Regional Manager A.P. MoellerMaersk Asia-Middle East-Oceania Region.
Supervisory board positions: Executive board member of
E.R. Capital Holding Ltd.
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UNIFEEDER
ANNUAL REVIEW 2009
Background: CEO of Unifeeder (2007-present), Managing
Director of Unifeeder Germany (2000-2007) as well as responsible for traffics into Russia and the Baltic region (1997-2007),
Representative in Hamburg (1999-2000), Department
Manager in Aarhus (1995-1999), Representative in Sweden
(1992-1994).
KNUD STUBKJAER
PETER DAHLBERG
JESPER KRISTENSEN
HENRIK VON SYDOW
CHRISTIAN RASMUSSEN
UNIFEEDER
ANNUAL REVIEW 2009
31
GROUP MANAGEMENT
JESPER KRISTENSEN
PER DALGAARD
SIMON GALSGAARD
Born: 1967
Born: 1953
Born: 1970
Title: CEO.
Title: Director of Operations.
Title: Director of Shortsea Services.
Education: Graduate Diploma in Business Administration
(Foreign Trade) from Aarhus School of Business and ADP
from London Business School.
Education: Maritime background with shipping education
from Alfred Hansen Shipping A/S and United Shipping
Agencies A/S (now Unifeeder A/S).
Education: CBA (Certificate in Business Administration)
from AVT.
KIM LARSEN
JON RISVIG
JESPER ULDBJERG
Born: 1971
Born: 1976
Born: 1966
Title: Chief Commercial Officer.
Title: Director of HR and Business Development.
Title: CFO.
Education: Market Economist from Aalborg Business
College and Maersk International Shipping Education.
Education: M.Sc. (Econ) from Aarhus School of Business.
Education: M.Sc. in Business Economics and Auditing
from Aarhus School of Business.
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UNIFEEDER
ANNUAL REVIEW 2009
PER DALGAARD
JESPER KRISTENSEN
SIMON GALSGAARD
JESPER ULDBJERG
JON RISVIG
UNIFEEDER
KIM LARSEN
ANNUAL REVIEW 2009
33
RISKS
Unifeeder is exposed to various operational and financial risks. The management of these risks is an
integral part of day to day operations. The Board of Directors has the ultimate responsibility for
establishing a framework within which risks are identified, measured, analysed and monitored.
OPERATIONAL RISKS
Compliance
Macroeconomic and market risks
A comprehensive compliance programme is in place and
covers the interaction with all stakeholders to make sure
applicable rules and regulations are followed. Unifeeder
also ensures that products, organisation and vessels are
fully compliant with the IMO rules.
The logistics and transportation market is impacted by the
general state of the economy where positive or negative
growth can result in under- or overcapacity and price fluctuations. Unifeeder’s asset-light business model offers operational flexibility that makes it possible to adapt capacity
to the current demand situation on a short term basis.
Vessels
Unifeeder manages a portfolio of vessels with varying sizes
and contract terms, expiring continuously over the course
of the year. In many cases Unifeeder has one-sided options
for extension or termination of the charter agreements.
Reputation
Ever since Unifeeder was founded in 1977 the company
has built a strong reputation in the market by offering
reliability and high-quality services. Unifeeder ensures that
its employees are continuously receiving training regarding company policies to make sure that the best-in-class
reputation in the market is maintained.
Acquisitions
Unifeeder will continue to pursue acquisitions where
integration and financing risk have to be considered. The
integration of the newly acquired IMCL has so far progressed according to plan and is expected to be successfully completed by mid 2010.
Security
The risk of unauthorised access to containers during a
voyage is considered to be low. Unifeeder only charters
vessels from owners that guarantee a high level of security
for the containers onboard. In addition the company has
agreements with terminals that guarantee security of the
containers in connection with both handling and storage
according to the international ratified ISPS (International
Ship and Port Security) regulations. The whole range of
services where Unifeeder is involved in the transportation and container handling process is fully insured with
reputable insurance agencies.
UNIFEEDER
ANNUAL REVIEW 2009
Employees and third party agencies
Unifeeder is dependent on its ability to attract and retain
qualified and committed employees. Unifeeder works
closely with its third party agencies to make sure they
offer customers a service level as high as that provided by
Unifeeder’s own employees.
FINANCIAL RISKS
Foreign currency risk
Revenues and expenses are both in EUR to a large extent
which means that Unifeeder’s transaction exposure is limited. Unifeeder is however exposed to fluctuations in the
USD due to purchases of bunker oil. The company expects
that the DKK fixed exchange rate policy against the EUR
will continue and does not hedge positions in EUR.
Bunker prices
A large part of Unifeeder’s costs consists of purchase of
bunker fuel for the vessels. The effect of price changes for
Unifeeder is limited through a contractual bunker adjustment factor (BAF) that reflects the movements of market
price of bunker fuel. This means that Unifeeder to a large
extent is hedged from changes in bunker prices.
IT
Unifeeder’s operations are dependent on IT. The company
aims to continuously optimise its business processes and
34
operations where IT is an important factor. Unifeeder
makes assessment of the systems on a regular basis and has
recently invested in new centralised IT infrastructure at the
headquarters in Aarhus with external back-up facilities.
Interest risk
Unifeeder has limited exposure to interest fluctuations.
Credit risk
Unifeeder’s credit risk relates to trade receivables. The
company reviews overdue receivables continuously. The
diversified customer base means credit risks are spread
over a large number of businesses and past performance
has shown limited credit losses on the customer portfolio.
CORPORATE GOVERNANCE
Unifeeder A/S is a privately held company that complies with high standards of corporate
governance. Its main owner Montagu has more than forty years experience of supporting
management teams in its portfolio companies.
Unifeeder benefits from Montagu’s experience
The private equity firm Montagu and certain members of
the present management group of Unifeeder acquired the
company in 2007 when Unifeeder was still owned and
managed by its founders. Through close co-operation on
the board and management levels Unifeeder has benefited
from the experience and expertise that come with private
equity ownership.
Exercise of ownership
In Unifeeder, Montagu exercises its ownership through
its two Directors at board meetings and in informal and
frequent dialogues with the CEO and other members of
the group management.
Montagu brings its expertise to Unifeeder
Montagu has brought its expertise into play on the strategic, financial and operational levels by being an active
participant in determining the value creation approach as
well as the broader strategy direction. It has continuously
assisted within the field of financing and acquisitions.
As for corporate governance, a number of measures
and programmes have been implemented to assure that
Unifeeder adheres to best practices on issues ranging from
compliance, audit and assessment to general management.
Board of Directors
Two of the five members of the Board of Directors, Henrik
von Sydow (chairman) and Knud Stubkjaer are considered
independent with no other relationship with Unifeeder or
Montagu than their board positions. Information about
the individual members of the Board of Directors is found
on page 30.
In 2009 the Board held ten meetings. It is required to
meet at least four times a year with additional meetings as
required.
At the meetings the Board discusses business and
market related matters, financial reporting, KPIs and the
company’s financial position and strategy, normally
including growth and value creation initiatives.
Committees
Board committees may be established by the Board of
Directors to prepare decisions and recommendations for
evaluation and approval by the Board.
The Board has appointed an audit committee and a
remuneration committee. The audit committee discusses
and analyses the annual accounts with the auditors and
assesses the internal control systems within the company
and evaluates to which extent the control procedures of
the company are adequate.
The remuneration committee determines compensation for the management and set remuneration guidelines
for the whole Unifeeder organisation.
Montagu is a leading private equity investor in the European mid-market with offices in London, Manchester, Paris, Düsseldorf, Stockholm and Warsaw. Since its inception in 1968
the firm has supported more than 400 businesses operating across a range of different segments and sectors.
Montagu is focused on investing in management buyouts in partnership with the incumbent management team. The firm has a strong track record of delivering superior
returns over time, an extensive network of contacts and offers its portfolio companies capital, financial expertise and strategic assistance in order to unleash their full development
and growth potential.
UNIFEEDER
ANNUAL REVIEW 2009
35
FINANCIAL REVIEW
Income statement
The economic crisis in the global economy affected
demand for logistics services in Unifeeder’s markets and
led to lower volumes during 2009. Unifeeder has been
able to adapt to the new market conditions through its
asset-light business model combined with efficiency
initiatives and working capital optimisation.
Balance sheet
The group’s total assets amounted to DKK 662 million at
31 December 2009. Of this property, plant and equipment
totalled DKK 13 million (equal to 2.0 per cent of total
assets).
Intangible assets amounted to DKK 131 million and
consist mainly of goodwill related to acquisitions.
Revenues
Working capital
Total revenues in 2009 of DKK 1,905 million relates to
both Feeder Services and Shortsea Services with the latter
increasing to 20 per cent of total revenues.
Working capital amounted to DKK -71 million at
31 December 2009. The liquidity ratio was 115.7 per cent
at year end 2009.
Operating profit
Shareholders’ equity
Measured as a percentage of revenues, operating profit
margin was 16.7 per cent.
Depreciation and amortisation during 2009 was DKK
3.8 million resulting in an EBITDA of DKK 322 million.
Return on assets was 48.0 per cent.
Shareholders’ equity amounted to DKK 260 million at
31 December 2009, resulting in a solvency ratio of 39.2
per cent.
Exceptional and/or non recurring expenses
Exceptional and/or non recurring expenses amounted to
DKK 4.7 million and were mainly incurred in connection
with a reorganisation of the Unifeeder Group.
Financial and associate income
Due to the positive cash position financial items are net
positive of DKK 1.2 million; however losses from investments in associated companies bring the position to a net
loss of DKK 4.5 million.
Investments relate to stevedoring activities in Denmark and Norway and an office building in Copenhagen,
Denmark.
Net profit for the year
Unifeeder recorded a net profit of DKK 311 million,
corresponding to a net profit margin of 16.3 per cent.
36
UNIFEEDER
ANNUAL REVIEW 2009
Statement by
Group Management
and Board of Directors
on the annual review
We have today presented the condensed financial
statements of Unifeeder A/S for the financial year
1 January to 31 December 2009, as an extract of our
annual report prepared in accordance with the Danish
Financial Statements Act.
For purposes of obtaining a better understanding
of the company’s financial position and result, the
condensed financial statements should be read in the
context of the annual report from which the condensed
financial statements were derived.
Net cash position
At 31 December 2009 Unifeeder had a net cash position
of DKK 133 million.
Aarhus, 29 April 2010
Cash flow statement
Cash flow from operating activities amounted to DKK
305 million, corresponding to 95.8 per cent of operating
profit.
Investments of DKK 8 million in 2009 mainly relate
to establishment of offices in Russia and upgrading of IT
facilities.
Cash flow before acquisitions was DKK 297 million,
equal to 15.6 per cent of revenues and 92.4 per cent of
EBITDA.
Acquisitions of DKK 61 million mainly relate to the
acquisition of IMCL which closed on 30 December 2009.
The purchase price is divided into installments some of
which are contingent on certain conditions being met.
Cash flow after investing activities amounted to
DKK 236 million, equal to 12.4 per cent of revenues and
75.9 per cent of net profit for 2009.
Group Management
Jesper Kristensen, CEO, Per Dalgaard, Director of
Operations, Simon Galsgaard, Director of Shortsea
Services, Kim Larsen, Chief Commercial Officer,
Jon Risvig, Director of HR and Business Development,
Jesper Uldbjerg, CFO.
Board of Directors
Henrik von Sydow, Peter Dahlberg, Jesper Kristensen,
Christian Rasmussen and Knud Stubkjaer.
CONSOLIDATED INCOME STATEMENT
1 January – 31 December 2009
Thousands
DKK
EUR
1,904,843
255,976
Costs of sale
- 1,439,804
- 193,483
Gross profit
465,039
62,493
Administrative expenses
- 149,861
- 20,139
Other operating income
2,934
394
318,112
42,748
- 7,001
- 941
311,111
41,807
Revenue
Operating profit
Financial and associate income, etc
UNIFEEDER
ANNUAL REVIEW 2009
37
CONSOLIDATED BALANCE SHEET
31 December 2009
Thousands
DKK
EUR
131,033
17,608
Property, plant and equipment
13,141
1,766
Investments in associates
61,568
8,274
645
87
206,387
27,735
20,552
2,762
284,867
38,281
17,631
2,369
Cash and cash equivalents
132,971
17,869
Current assets
456,021
61,281
TOTAL ASSETS
662,408
89,016
259,507
34,873
8,692
1,168
Trade payables
261,454
35,135
Other payables and deferred income
132,755
17,840
Short-term debt
394,209
52,975
TOTAL LIABILITIES AND EQUITY
662,408
89,016
ASSETS
Intangible assets
Other fixed asset investments
Fixed assets
Inventories
Trade receivables
Other receivables and prepayments
LIABILITIES AND EQUITY
Shareholders equity
Provisions
38
UNIFEEDER
ANNUAL REVIEW 2009
CONSOLIDATED CASH FLOW STATEMENT
1 January – 31 December 2009
Thousands
DKK
EUR
311,111
41,807
- 6,372
- 856
304,739
40,951
Investments
- 8,205
- 1,102
Acquisitions
- 61,295
- 8,237
880
118
Cash flow from investing activities
- 68,620
- 9,221
Cash flow after investing activities
236,119
31,730
Change in working capital, adjustments etc.
Cash flow from operating activities
Dividend received
UNIFEEDER
ANNUAL REVIEW 2009
39
INDEPENDENT AUDITOR’S STATEMENT
To the readers of Unifeeder Annual Review 2009
We have checked the selected financial information “Consolidated Income Statement, Consolidated Balance Sheet and Consolidated Cash Flow Statement” on pages 37-39 in the
“Unifeeder Annual Review 2009”, which has been extracted from the Company’s Consolidated Financial Statements for 2009 (Årsrapport 2009). Unifeeder A/S’s Consolidated Financial
Statements for 2009 prepared in accordance with the Danish Financial Statements Act have been audited by us and provided with an unqualified auditor’s report without emphasis of
matter. The audit for the financial year 2009 was completed on 29 April 2010.
The Management of Unifeeder A/S is responsible for the selected financial information “Consolidated Income Statement, Consolidated Balance Sheet and Consolidated Cash Flow
Statement” on pages 37-39. Our responsibility is to express a conclusion, based on our work, as to whether the selected financial information “Consolidated Income Statement,
Consolidated Balance Sheet and Consolidated Cash Flow Statement” on pages 37-39, has been correctly extracted and reproduced from the audited Consolidated Financial
Statements for 2009 (Årsrapport 2009).
Scope of Work
We conducted our work in accordance with Danish Auditing Standards. Those Standards require that we plan and perform our work to obtain reasonable assurance in respect of our
conclusion. As part of our work, we checked the information in the selected financial information “Consolidated Income Statement, Consolidated Balance Sheet and Consolidated
Cash Flow Statement” on pages 37-39 and verified that it has been correctly extracted and reproduced from the audited Consolidated Financial Statements for 2009 (Årsrapport
2009). We believe that the work performed provides a reasonable basis for our opinion.
Conclusion
In our opinion, the selected financial information “Consolidated Income Statement, Consolidated Balance Sheet and Consolidated Cash Flow Statement” on pages 37-39, has been
correctly extracted and reproduced from the Unifeeder A/S Consolidated Financial Statements for 2009 (Årsrapport 2009).
Emphasis of Matter
The selected financial information has been prepared solely for the purpose of producing a summary presentation of financial highlights of Unifeeder A/S selected by Management.
In order to fully understand the results and the financial position of Unifeeder A/S as well as the scope and nature of our audit, the selected financial information “Consolidated Income
Statement, Consolidated Balance Sheet and Consolidated Cash Flow Statement” on pages 37-39 should be read in conjunction with the audited Unifeeder A/S Consolidated Financial
Statements for 2009 (Årsrapport 2009).
Aarhus, 29 April 2010
PricewaterhouseCoopers
State Authorised Public Accountants Company
Michael Nielsson
State Authorised Public Accountant
40
UNIFEEDER
ANNUAL REVIEW 2009
Lars Greve Jensen
State Authorised Public Accountant
GLOSSARY
FINANCIAL DEFINITIONS
BAF
EBITDA
ISPS
Bunker adjustment factor.
Earnings before interest, tax, depreciation
and amortisation.
International ship and port security.
BSR
MARPOL
Baltic sea region.
Liquidity ratio
CSR
Marine pollution. MARPOL conventions are
negotiated within the IMO framework.
Corporate social responsibility.
Multimodal
EBIT
EDI
Carriage of goods by at least two different
modes of transport.
Earnings before interest and tax.
Operating profit margin, %
SECA
Operating profit x 100/Revenues.
HSSE
Sulphur emission control area.
Net profit margin, %
Health, safety, security and environment.
PSSA
Net profit x 100/Revenues.
IMDG
Particularly sensitive sea area.
Return on assets, %
International maritime dangerous goods.
t
Operating profit x 100/Total assets.
IMO
Metric tonnes.
Solvency ratio, %
International maritime organization.
TEU
Equity at year end x 100/Total assets.
Integrated electronic data interchange, a
powerful way of business communication.
Intermodal
Movement of goods (in one and the same
loading unit or a vehicle) by successive
modes of transport without handling of the
goods themselves when changing modes.
Intermodal transport is therefore a particular
type of multimodal transport.
One TEU (twenty feet equivalent unit)
represents the cargo capacity of a standard
intermodal container, 20 feet long and
8 feet wide.
International organisation for
standardisation.
IMO
20’, 40’, 45’
International maritime organization.
Working capital
S um of inventories, receivables and other
current assets less current payables.
VSA
Vessel sharing agreement, agreement
between two or more carriers in which a
number of container positions (“slots”)
are reserved on particular vessels for each
participants.
ISO
Current assets/Short-term debt.
’= Feet
EDI
EBITDA
Unifeeder’s Annual Review 2009 was produced in co-operation with Wildeco. Photography: Kenneth Hellman, Lorentsen Fotografi and Unifeeder. Illustration: Leif Åbjörnsson. Printing: Åtta.45, Stockholm, Sweden.
UNIFEEDER
ANNUAL REVIEW 2009
41
Unifeeder A/S
Tel: +45 88 83 00 00
Shipping Huset
Fax: +45 88 83 00 99
Hveensgade 1
www.unifeeder.com
DK-8000 Aarhus C

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