venture - Wallenius Wilhelmsen Logistics

venture
wallenius wilhelmsen logistics
magazine for customers
issue 1/2010
Bon Voyage
From France to Australia
Peugeot cars enjoy first-class
service with WWL
OUR INDUSTRY
The only way is up for
China’s auto industry
Think global
The best solution
for John Deere
A FULL CHECK UP
Routine maintenance
Keeps vessels in ship shape
venture
01.2010
CONTACT
CONTENT
Venture no 1 March 2010
Published by Wallenius Wilhelmsen
Logistics AS, Box 38193, SE-100 64
Stockholm, Sweden
Editor Cathrine W. Horn
Publisher responsible under
Swedish press law Anna Larsson
Editorial production Tidningskompaniet,
Stockholm
Environmental care This magazine is
­produced in accordance with the Nordic
­ecolabelling system, the Swan.
Front cover WWL ships Peugeot cars from
France to Australia. Photo: Eamon Gallagher
Next issue June 2010
Copyright Texts and images in Venture may
not be republished without permission from
the editor or publisher responsible.
Print Trydells, Laholm
WWL contact details:
Region Americas
+1 201 307 1300
Region Asia
+81 3 5220 5811
Region Europe
+46 8 772 0800
Region Oceania
+61 3 8605 8000
If you have any comments related to Venture
or questions about subscriptions, please email:
[email protected]
8
getting peugeots down under
For almost a decade WWL has been moving Peugeot cars from the wharf in France to dealers in
Australia on behalf of Sime Darby Automobile Pty. Ltd. As Peugeot sales have more than doubled
in Australia during this period, smooth and seamless logistics are essential to handle the growth.
6 In the cargo
20On site
16Focus on breakbulk
22Vessel makeover
WWL ensures a safe passage for Bombardier
streetcars to and from the Winter Olympics
Breakbulk in the spotlight as WWL takes
part in this year’s international trade shows
M/V Talisman undergoes a routine
maintenance programme in Singapore
17Cop on or a cop out?
24China’s auto market
18 Market Outlook 2010
26 Helping GM in Vancouver
Venture asks leading industry experts if
COP 15 was a success or failure
WWL’s market analysts examine global
economic recovery and outlook for vehicles, farm and construction machinery
2 VENTURE 1 2010
Business grows steadily at the Annacis
Vehicle Processing Centre near Vancouver
A closer look at the current boom in China’s
automotive industry and the main players
WWL processes over 4,000 vehicles
for GM, used during the Winter Olympic
Games
EDITORIAL
Adapting to
a changing world
12
The first quarter of 2010 is almost over and we are definitely
seeing signs of recovery in the global economy – in particular,
automotive volumes are picking up. There are, however, still
uncertainties left.and the extent of the economic recovery is very
unpredictable. We do not know to which extent demand levels
will be affected once government-funded stimulus initiatives
end. We also have a question mark hanging over rising oil prices
and the issue of how new environmental legislation will increase
logistics costs.
So our feelings about the future are a mixed bag of emotions –
Meet Ingvar Sviggum
Ford Europe’s Vice President Marketing, Sales and Service,
admits that recovery in the European auto market is ‘fragile’
but remains confident about its future.
14
The global X factor
Equipment giant John Deere has moved from a local to a
global mindset. David Panjwani, head of Global Transportation, shares the successes and pitfalls and comments on the
importance of having a global logistics contract with WWL.
relief that there is an economic recovery in sight and curiosity
about what shape the markets will take
“The extent of
in the future. We all know deep down
that the global economy will most likely the economic
not return to the same size and shape
recovery is very
we saw during the “peak” years. This
unpredictable.”
means that we also have to create new
ways of working that are adapted to the new situation. And we
cannot be content with the efficiency improvements we made
during the downturn. There is still much work to be done.
In this volatile market, WWL must continue to improve efficiency through just-in-time solutions, systems integration and
strategic partnerships. The more efficient supply chains we craft,
the more cost savings and better service we can pass on to our customers. We know that demands from the politicians, the public
and media will require that transports and logistics are performed
with more care for the environment. At WWL we will therefore
work hard on finding and implementing solutions which will
benefit the environment and, at the same time, reduce exposure to
increased cost. One thing about the future
is clear: the logistics and vehicle industries
need to work together to reach for the
high-hanging fruit that will really make a
difference!
arild B. Iversen
President & ceo,
Wallenius Wilhelmsen Logistics
VENTURE 1 2010 3
network update
Participating in the Carbon War Room battle
As the shipping companies work hard
to reduce greenhouse gas emissions using
innovative low carbon technology, initiatives
such as The Carbon War Room, founded by Sir
Richard Branson, are helping to accelerate and
showcase their work and achieve the objective
of a low carbon shipping “eco-system.” Designed to bring together entrepreneurs, business leaders, policy experts, researchers and
thought leaders, the War Room operates as an
independent body on several battlefields – one
of which is transport and covers shipping.
On December 16, 2009, the Carbon War Room
conducted an event in Copenhagen, Denmark,
gathering key stakeholders in the industry including shippers, large customers, port authorities
and technology companies, to discuss marketbased solutions and partnerships to improve
economic and environmental performance.
The Carbon War Room’s founder Sir Richard
Branson, chairman Jose Maria Figueres, Maersk CEO Nils S. Andersen and Arild B. Iversen,
CEO of Wallenius Wilhelmsen Logistics all
showcased how progressive shipping lines
have started to increase efficiency and reduce
greenhouse gas emissions using innovative
low carbon technologies.
Sir Richard Branson, Jose
Maria Figueres, Nils S. Andersen
and Arild B. Iversen.
news in brief
Jaguar Land Rover renews
contract with WWL
WWL has won a new five-year
contract with Jaguar Land Rover
to ship its vehicles from
the
4 VENTURE 1 2010
United Kingdom to North America
and Oceania. WWL has been
working closely with Jaguar and
Land Rover since the 1980s.
“Our new long-term contract
with Jaguar Land Rover reinforces our joint work on quality
and product improvements on
logistics services,” says John
Speakman, Managing Director
WWL UK. “We expect to see a
growing co-operation between our
two companies on matters such
as developing leaner supply chain
solutions and new environmental
initiatives.” The contract will see
WWL shipping upwards of 45,000
Jaguar and Land Rover vehicles in
2010 from Southampton to the following ports: Baltimore, Brunswick
and Port Hueneme in the United
States; Halifax in Canada; Freman-
tle, Melbourne and Port Kembla
in Australia; and Auckland in New
Zealand.
Nissan award
for Mexican VPC
WWL’s largest customer in ­Mexico,
Nissan, has awarded WWL a
special certificate of recognition
for its excellent inventory control
and yard management service at
Q&A
Additional Porsche forwarding
business for WWL
For more than five years,
WWL’s Bremerhaven forwarding
department has been responsible
for the forwarding activities of Porsche shipments to Oceania. Since
November 1, 2009, this contract has
been extended to include Porsche
shipments from Bremerhaven to
China, carried by EUKOR Car Carriers Inc.
WWL Germany also acts as an
agent for EUKOR. Therefore, this
contract extension perfectly matches Porsche’s stategy to minimise the
number of suppliers needed for their
export activities.
New look for terminal information
The information about WWL’s terminals on its corporate website has
been redesigned to make it more
user-friendly, so customers and
employees can quickly and easily
find key data about each terminal.
The interactive map at the bottom
of the page provides a snapshot of
each terminal and a small fact box
with the address and telephone
number of the terminal. It also
serves as a link to more detailed
information about each terminal.
“Other useful tools include a sim-
its Vehicle Processing Centre in
Aguascalientes.
The automaker said that it could
not have overcome its challenges
and achieved such excellent
results in the region without
WWL. In 2009, WWL stored and
managed just over 18,000 units
of Nissan vehicles at the VPC, a
significant increase on previous
years.
ple PDF with information on how to
get to the terminal, opening hours,
closed days and contact details,”
says Per Stensli, Head of Business
Planning and Analysis, Terminal &
Inland Services. “There’s also a contact form for each terminal which
means you can directly contact the
relevant terminal without needing to
have an email address at hand.”
To view the updated pages, go to:
www.2wglobal.com/www/productsServices/
productsServices/terminalServices/index.jsp
WWL
joins
logistics
network
WWL recently teamed up with the
Global Project Logistics Network
(GPLN ) – a leading international
network of independent logistics
companies. Venture caught up
with GPLN ’s Executive Director,
Gary Dale Cearley, to find out
more about what it does.
What is GPLN?
“GPLN is the world’s premier
project logistics network of independent companies specialising
in international project movements by air, sea and land, as
well as handling oversized, out-of-gauge and heavy-lift cargo.”
What are your objectives?
“GPLN was established because
Who: Gary Dale Cearley
there wasn’t a truly non-exclusive
Title: Executive Director,
project cargo network for indeGlobal Project Logistics
pendent project cargo forwarders
Network
and chartering companies. We
About: How GPLN works
recruit first-rate members and
with WWL.
promote them to the shipping business, as well as other targeted industries. Unlike some of our competitors, we don’t accept commercial cargo companies simply because they want to join. Applicants
must show an operational capability and in-house expertise that
extends back over time. We actually turn away more clients than we
take on, but we’re still the world’s largest project-only group.”
How do you work with WWL?
“WWL recently became a corporate partner of GPLN. This
enables it to market its products directly to our members, many of
whom require the project cargo services that WWL offers. In addition, one of WWL’s sister companies, Wallenius Ships Service, is a
member of GPLN, so it’s easy to see the way our interests overlap.
I see this as a mutually beneficial partnership that I’m sure will last
for years to come.”
How will this strengthen WWL?
“WWL already has a unique capability when it comes to project
logistics movement. Thanks to our partnership, it will be better
positioned to reach even more project markets, as GPLN has
members all over the world.”Isabelle Kliger
VENTURE 1 2010 5
IN THE CARGO
Bombardier streetcars
take a trip to the
Winter Olympics
What do you do when you are given the task
of carrying two streetcars from Bremerhaven,
Germany, to Tacoma, Washington, in the US
and on to Vancouver Canada especially for
the Winter Olympics, and then back again –
and the trailer to carry them onboard the ship
simply doesn’t exist? “We designed a special
90-foot trailer, and provided two units just
for this project,” says Abu Nasser, General
Manager of Marketing & Sales, Europe for
Wallenius Wilhelmsen Logistics (WWL). Trailers that now confirm WWL’s ability to carry all
kinds of cargo.
Based in Bremen, Germany, Nasser
explains that it was a team effort in creating
the needed equipment and safely carrying
the streetcars to Vancouver for manufacturer
Bombardier Transportation. “We were first
contacted by freight forwarder FRACHT
AG from Nuremberg, who in turn had been
asked by a company called Prangl, a partner
­company of Bombardier’s, about this project.
All of us, together with our stevedore company in Germany, Atlantik Hafen Betriebe, who
would actually do the trailer modifications,
came up with the concept of how we would
handle the move, presented it to Bombardier,
and we were selected to do the job.”
The job certainly was a unique one. Two
Bombardier streetcars borrowed from
­Belgium’s Brussels Transport Authority STIB
were to be shipped to Vancouver not only to
provide free transport for visitors to the Olympic
and Paralympic Winter Games, but also to
highlight an upgrade of Vancouver’s rail system,
and the start of an expanded urban rail system
for the city. The streetcars are Bombardier’s
FLEXITY model, with low floors making for
easy access, even for wheelchairs and prams.
And, while their business is in making
these streetcars, this was a first for Bombar-
6 VENTURE 1 2010
dier as well, says project manager Christian
Ranzenberger.
“For the Business Unit Light Rail Vehicles
at Bombardier Transportation, an overseas
transport of streetcars is something out of
the ordinary. Having assessed many different
options, shipping the vehicles was the only
solution that catered for our needs. The
most important concern for us was to get the
vehicles safely to Vancouver in time for the
opening of the Olympic Line.”
However, Ranzenberger says, one concern
was that the streetcars were built with anticorrosion protection designed for Brussels,
far from salt spray, but would be crossing the
ocean onboard a ship. “In terms of safety, the
lashing concept also turned out to be a challenge as well, both for our engineers and the
people responsible at WWL. In highly productive meetings, bringing together the expertise
of tram engineers and mariners, we managed
to develop a lashing concept that guaranteed
a safe trip.”
And, in the end, Ranzenberger says, the
worries were unnecessary. “After almost
one month travelling by ship, neither corrosion nor the lashings were an issue for our
streetcars. Both vehicles arrived in perfect
shape in Tacoma, and we were able to start
our amazingly successful promotion during
the Winter Olympic and Paralympic Games in
Vancouver.”
Both streetcars are now on their way back
to Europe, and to the streets of Brussels.
William Ross
The entire process can be seen on
WWL’s YouTube channel, at
www.youtube.com/watch?v=hfXksr5N6hY
These state-of-the-art streetcars from
Bombardier travelled successfully,
and safely, from Belgium to Canada,
and back, thanks to WWL’s carefully
thought out shipment process.
VENTURE 1 2010 7
A one stop
solution
8 VENTURE 1 2010
CUSTOMER CASE PEUGEOT
WWL started working with Sime
Darby Automobile, Peugeot’s
representative in Australia, nine years
ago. Since then import volumes have
more than doubled. Sime Darby
Automobile has handled this growth
smoothly thanks to an efficient and
effective logistics process.
WORDS William Ross PHOTOs Eamon Gallagher
I
n 2001, Sime Darby Automobile Pty. Ltd. became
the sole representative for Peugeot cars in Australia.
With a new, dedicated sales and marketing team, the
company quickly grew the business, so that the 2001
figure of some 3,000 cars imported annually from
France had jumped to 8,000 per year in 2009 – and Sime Darby is looking at breaking the 10,000 vehicle figure shortly.
One thing they didn’t have to do, says Ken Thomas, General Manager and Director of Sime Darby, was increase their
logistics staff when they took on the Peugeot assignment.
“Wallenius Wilhelmsen Logistics (WWL) was able to
provide an in-house service where we could outsource the
responsibility of managing our inventory,” he says. “This
means that when the vehicle arrives from the factory at the
port of Le Havre in France, WWL manages the vehicle’s
ocean transport, its arrival in Australia, the movement
of the vehicles to storage facilities, the preparation of the
vehicles prior to distribution to the dealer network, and the
organisation of internal freight to the point of retail sale. It’s
basically a one-stop logistics solution for us.”
The ability to rely on WWL for complete supply chain
management is very important for Sime Darby, Ken Thomas stresses.
“We need to focus on our core activities: managing our
dealers, selling cars, doing marketing and supporting our
customers,” he says. “We have always tried to outsource
as much as we possibly can; we don’t want to get bogged
VENTURE 1 2010 9
CUSTOMER CASE PEUGEOT
John Keats hoses down a car at
Prix Car Services in Minto, NSW,
a WWL subcontractor.
“With
WWL’s
visibility
system we
are able to
monitor
the
supply
chain”
10 VENTURE 1 2010
down in managing inventory, movements, freight
and customs clearance.” By doing this, he says, “Our
direct staffing is less than 50 people, so we’re fairly lean
and mean.”
says Jeff Black, Contract Manager, Business Development for WWL in Australia, WWL has been with
Sime Darby pretty much from the first day the company began to handle Peugeot vehicles in Australia.
“Wilhelmsen had been involved on the ocean side for
many years, shipping Peugeot vehicles to Australia,”
he says. “We were in on the ground floor in 2001, which
meant that Sime Darby did not have to downsize an
existing logistics team, nor build a large logistics team.”
Sime Darby was also one of the first companies, Black
says, to make use of WWL’s visibility system. “With this
tool we are able to monitor and manage their supply
chain,” he explains. “It’s integrated right into Peugeot’s
factory information system, as well as the transport
company information system – pretty much everything along the supply chain. From the wharf in France
through to the dealer here in Australia, we can monitor
the progress of individual vehicles. When things fall be-
In fact,
hind or something goes wrong, the system tells us. Even
though we’re handling 8,000 vehicles annually, we focus
on the few problems, rather than the majority of vehicles
where there is no problem.”
Ken Thomas describes the system from the customer
viewpoint. “WWL basically said to us, what if we build
you a website that collects all the information from
various sources and create an information database,”
he says. “It gives us predictability modeling. It automatically loads the information on how the car is
traveling from France to Australia, and loads that into
the estimated time of arrival. So, for us as the user,
about SIME DARBY
Sime Darby, headquarted in Kuala Lumpur, is Malaysia’s
largest multinational corporation. Along with its auto­
motive activities – which, outside of Australia include
dealer­ships and manufacturing activities in Malaysia,
Singapore, Thailand and China – the company is also
involved in plantations, property, industrial equipment and
energy and utilities. In total, the company is active in more
than 20 countries and employs over 104,000 people.
Maria Dessmann from the build team
puts an identification sticker on the
inside window of the car.
Ken Thomas on why he chose WWL:
“We needed a company that
we knew and could trust”
Rocky Robinson screws number
plates on to the vehicle, preparing
it for delivery.
“We handle
all the
inland
logistics in
Australia
for the
vehicles”
instead of contacting different suppliers and trying to
calculate things in our heads, the system does it for us.”
With this system, he adds, the salesman or dealer can
simply pull up the website, plug in the code for a car,
and they can find out the location of the ship transporting the vehicle, the estimated arrival time at the port
and when it should be at the dealership.
in the Australian market
with nearly the complete vehicle lineup. One interesting, newer model is the 4007, a four-wheel drive
compact crossover developed as a joint venture with
Mitsubishi of Japan. “They don’t only build the cars at
Mitsubishi, they also take responsibility for shipping
them from Japan to Australia,” Ken Thomas says.
That doesn’t mean, however, that WWL is out of the
picture for the 4007. “We handle all the inland logistics
in Australia for the vehicles, even when the vehicles are
not transported on one of our vessels,” Black explains.
Ken Thomas says that this full coverage of logistics
services provided by WWL is part of a very close and successful relationship. “I suppose that one of the reasons
we like working with WWL is that it’s not just a commer-
Peugeot is represented
When Sime Darby began its
work representing Peugeot
in Australia, Ken Thomas
says there were a number of
potential business partners
to choose from. “We need­
ed a company that we knew
we could trust and work
with to transport vehicles
from France to Australia. My
boss at the time had worked
together with Wilhelmsen;
from that came a discus­
sion, an agreement and a
contract for providing lo­
gistics services. We meant
by logistics not just ocean
shipping but managing the
vehicles once they arrived
here. WWL was able to
promise that, and they have
delivered.”
cial contract, but a personal relationship as well. That
means the people working in both companies all the way
up to the senior management level, where we talk together about strategy, policy, pricing and other matters.”
“We recently re-signed our contract with Sime Darby
for another five years,” Black says with obvious pride.
“They were one of the customers that trusted us early on
in our logistics venture, signed on with us, stayed with
us through the inevitable early teething pains, and we
have now entered into our ninth successive year of doing business together.”
about Peugeot
From its roots in the 19th century producing coffee
mills and bicycles, Peugeot has grown to be part of the
second-largest automaker in Europe, PSA Peugeot Cit­
roën. Peugeot has been present in Australia since World
War I. The brand received a major boost in 1953, when
a Peugeot 203 won a 10,000-kilometre rally race across
the Australian Outback. Today the cars are seen as a
higher-level vehicle, and are well known for introducing
clean diesel technology into Australia.
VENTURE 1 2010 11
Ingvar Sviggum, Vice
President Marketing,
Sales and Service for
Ford of Europe, says
the recovery we are
seeing in the European
auto market is ‘fragile’.
But he is still confident
about the future.
Words & PHOTOS Kaia Means
Confident
about the future
courtesy of WW WORLD
12 VENTURE 1 2010
INTERVIEW Ingvar Sviggum
Ford of Europe
Ingvar Sviggum has been Vice President Marketing, Sales and Service for Ford of Europe since
2008. He started his career at Ford Norway in 1963
as a trainee and has held many positions since
then within Ford. Sviggum joined the Ford of Europe central senior management team in 1989 as
Director, Marketing Plans and Programmes. He is
also a Ford Motor Company Vice President.
T
he car industry has been hard hit by the
financial crisis. But Ingvar Sviggum,
Vice President Marketing, Sales and
Service for Ford of Europe, is confident
about the future.
“I feel we are in the right position to make even
further gains with our new products once the market
starts to recover, as it eventually must,” he says.
The decline in demand across the world has had a
negative impact on many business areas, and notably
the car industry. Wholesale sales at Ford of Europe
in the second quarter of 2009 were down by 132,000
units, compared to the same quarter 2008, to 400,000
vehicles sold. Yet despite severe economic headwinds,
Ford of Europe has made steady progress, returning to
profit in the second quarter after just two quarters of
loss and is steadily increasing its market share.
“We are taking a bigger slice of the pie even though
the pie is getting smaller in absolute terms. Cutting
capacity, together with a strong focus on reducing
costs, has been a key part in our efforts to sustain a
healthy business and to return to sustainable profitability as soon as possible. But the key factor has been
to ensure that we continue to deliver great products
to our customers,” says Sviggum.
Scrappage schemes have helped to keep the Euro-
pean auto market buoyant in 2009. Sviggum believes
that they should continue for as long as practically
possible and then be phased out to avoid destabilising reductions in demand that could damage the
fragile improvement we have seen in recent months.
“Without the scrappage schemes we would have
been faced with a far weaker market. But the underlying market remains weak as some of the key structural issues still need to be addressed – for example,
fears of unemployment, confidence in an improvement and access for customers to credit at reasonable
interest rates.”
Sviggum believes that fuel economy and CO2
reduction will continue to be primary drivers for the
auto industry during the next years and will increasingly become a customer-competitive area for car
manufacturers.
“I think the economic situation, CO2 taxation
and the volatility of oil prices is forcing many customers to reconsider their vehicle needs, hence the
greater interest in smaller vehicles,” he says.
“And we will definitely see more customerfocused technologies in our vehicles – much more
of an overlap between the digital world we experience outside our vehicle and in our vehicle. There
will be more choice and more innovation on offer
to customers, and the opportunity to better tailor
a vehicle to the owner’s
specific lifestyle needs
and aesthetic wants,
such as through Ford’s
Individual Programme.
All in all, I think the
next five years will be a
time when it has never
been better to be a new
vehicle customer.”
“Fuel
economy
and CO2
reduction
will continue
to be primary
drivers for
the auto
industry”
Increased production
in Korea, India and
China is also affecting
the industry.
“The world is becoming increasingly more global when it comes to competition, but the key is to embrace this as an opportunity rather than simply perceiving it as a threat,”
Sviggum says. “Just recently Ford announced new
investments in India and China that will help us to
establish ourselves even more in those key markets.”
Good logistics solutions, he agrees, are steadily
becoming more important in our globalised economy, where cars are being made in many different
countries.
“Logistics and support from our logistics suppliers is a critical factor in our operations,” he
explains. “We need to ensure we have robust and
efficient processes in place so the system operates as
smoothly as possible. We are of course also driving
the process from order to delivery. The time between
production offline and putting the key in the customer’s hands is a waste and dead time. Therefore,
a very efficient and reliable distribution system is
vital for total profitability.”
VENTURE 1 2010 13
Think global,
act global!
David Panjwani, head of Global Transportation at
equipment giant John Deere, explains how his team
has moved smoothly from a local to global mindset,
bringing a trail of direct and indirect benefits – both
for John Deere and their end customers.
WORDS
Alannah
Eames
ILLUSTRATION
NILS-PETTER
EKWALL
“Having
one global
logistics
partner
has really
helped
us create
a global
logistics
setup”
14 VENTURE 1 2010
T
en years ago, North American equipment manufacturer John Deere realised
its future growth would shift from its
home turf to international and emerging
markets. To succeed and ensure its cost
and quality goals were met, it would need to set up a
global logistics team, put global supplier contracts in
place and instill a global mindset internally.
David Panjwani, Global Logistics Manager, was
assigned the task of making sure this became a
reality. The New Yorker, born to Indian and
Canadian parents, already had eight years’
experience at Schneider Logistics, managing
key customers like Toyota. This meant he
understood what John Deere needed and could
also see things from the logistics provider’s side.
“To move to a global mindset may sound easy but
when we started we had a factory by factory approach,
even within the regions. There were some examples of
collaboration with other regions, but this wasn’t the
norm,” Panjwani recalls. “Basically we had to get our
colleagues together from different regions face to face
and see how we could better leverage our volume without compromising on the quality that our local regions
demanded.”
The main challenge, he says, was ensuring that local
needs could be met while at the same time approaching
logistics from a global contract management perspective.
Fortunately, the overall consensus was that John
Deere needed to achieve certain volume and cost goals
to secure long-term profitability. “We needed to get
everybody on board as it wouldn’t have worked to force
a corporate strategy on our internal customers.
This was relatively easy as we could all see that
the way we were doing things back then was not
really working in our favour,” he admits.
The discussions also meant sitting down with Wallenius Wilhelmsen Logistics (WWL), with whom John
Deere had already built up a strong relationship on a
local and regional level – it had worked with Wilhelmsen since the 1960s and Wallenius since the 1980s.
In 2007, John Deere signed a global contract with
WWL. The contract consisted of four signatures from
Several times a year, the two partners sit down in the
same room together, something which Panjwani terms a
“sacrifice as time is tight but it really pays off ”. They review total performance, identify areas for improvement
and see where regional cooperation can be strengthened.
What has really helped John Deere to create a global
logistics setup, Panjwani believes, is having one global
logistics partner. “Before we used to have multiple
handoffs in our supply chain but that’s
avoided now by having a single global
contract in place.”
He shares an example: transporting a
John Deere tractor made in Mannheim,
Germany, to a dealer in Melbourne,
Australia.
“First we share our long-term
forecast with WWL to allow
precision planning on
both sides. Then WWL
manages and tracks the
tractor from the moment it leaves the factory,
along its journey by barge
from Mannheim to Zeebrugge, the
port of exit,” he explains. “This gives us
cost and quality security. All the time Tony Paltridge, our logistics leader in Australia, can see
what is happening and can keep the dealers updated on information like the route, customs
clearance and expected delivery time.”
John Deere and four from
WWL – and, interestingly, each
company had a signature from
North America, Europe, Australia
and Brazil. “This was symbolic as it
showed just how aligned we were with each other,” says
Panjwani. “It also cemented the fact that we had moved
from a regional to global team.”
Today, John Deere uses WWL’s shipping, terminal
and technical services and inland distribution to get its
equipment to dealers worldwide on-time and damagefree.
Balancing cost, quality and service is always
a challenge, he says. “But with WWL, we’ve
achieved very competitive rates, excellent service
and good asset management – the speed with which
we deliver to the end customer.” He’s also quick to
praise the dedicated John Deere team at WWL, headed
by Doug Peterson: “Without their focus, we wouldn’t
have been so successful.”
Looking back at the efforts to build up his logistics
team, Panjwani is convinced that the global way of
working and a global contract makes life easier. “It’s ultimately what’s best for us. It means we can leverage our
total volume and take our customers’ requirements into
account. It also ensures that we get the best attention
from our supplier when it comes to cost, quality and
service and this is something that we automatically pass
on to our customers.”
“It’s still a tough and uncertain business environment. That’s why it’s more important now than ever
before to work on a strong, long-term relationship with
our service providers and to overcome the short-term
challenges together,” he emphasises.
ABOUT JOHN
DEERE
John Deere was
founded in 1837
and has grown
from a one-man
blacksmith shop
into a corporation
that today does
business around
the world and
employs approxi­
mately 56,000
people. John
Deere consists of
three major busi­
ness segments
(agriculture and
turf, construction
and forestry, and
credit). The com­
pany’s products
and services are
primarily sold and
serviced through
John Deere’s
dealer network.
VENTURE 1 2010 15
Breakbulk conferences 2010
EVENTS
2010
Singapore – JANUARY
Breakbulk on the move
In January, Wallenius Wilhelmsen
Logistics (WWL) attended the Journal
of Commerce’s breakbulk conference
in Singapore. This is the first of a
series of high-profile international
trade shows bringing customers and
logistics providers together.
the breakbulk events have become
well-organised venues for making contacts and exchanging information.
Mark Barnwell, Manager Key & Liner
Sales for Region Americas, has for many
years been the spokesman for WWL’s breakbulk business. In his opinion the industry
trade events have gained importance during
tough times: “Our customers are seeking
new solutions to shorten the supply chain
and often we can accomplish this for them.”
Face-to-face exchanges at breakbulk
events give customers the opportunity
to describe their requirements to WWL
in-depth. Determining the best routes and
equipment is a matter of collaboration, according to Barnwell. “Meetings at the breakbulk shows reinforce our customer-centred
approach to business,” he emphasises.
Well-known as the leading logistics
provider for cars and rolling equipment,
WWL has also long been a trusted partner
in the breakbulk cargo segment.
In addition to the lift-on-lift-off weather
deck option, customers are still learning
about the variety of flexible yet secure un-
16 venture 1 2010
der-deck stowage solutions. Protected from
exposure to the elements, the under-deck
environment provides insurance against
potential damage to sensitive commodities. In addition to offering the traditional
services of breakbulk carriers, WWL has
expertise in rolling long, tall or heavy cargo
onto vessels. The weight limit, up to approximately 380 tonnes, sometimes exceeds
the expectations of potential customers.
of WWL customers is a
global network of terminals. Partnerships
around the world, representing more than
100 vessels, often allow WWL to win time
for manufacturers on tight schedules.
“Time and again we have had a positive
impact on a project’s net economic result
because we could get there sooner and
safer,” notes Barnwell.
A large component of trade shows is the
visual experience. Barnwell elaborates:
“We are a little bit like the fashion industry. You can talk about clothes, but people
want to see them in action. In our industry
the equivalent of the catwalk is a video
presentation documenting successful loading, stowage and unloading. Customers see
us solve a problem and say ‘I have something like that, but never thought it could
go on so smoothly’.”Davrell Tien
At the disposal
Check out the video presentations at:
www.youtube.com/user/WWLBreakbulk
2nd Breakbulk Asia Transportation Conference & Exhibition
Many of the seminars in Singapore focused on the prospects of economic recovery. And this year’s event attracted
even more visitors than the year before,
with a 21 percent increase in registered
delegates compared to the 2009 conference. The Asian event is not a repetition of Antwerp and Houston, says
Mark Barnwell, adding “the region is
full of new players and Asia is proving
itself dynamic and optimistic.”
Antwerp, Belgium – MAY
5th Annual Breakbulk Europe
Transportation Conference &
Exhibition
Takes place
between May 18
and 20 in Antwerp, Belgium.
The theme of the event is “Looking for
Opportunity”. “The reception of our
new booth in Singapore was excellent,
and we anticipate that it will attract
many visitors in Antwerp, too,” notes
Barnwell.
Houston, Texas, USA – OCTOBER
21st Breakbulk USA Transportation Conference & Exhibition
Scheduled
for October 12
through 14, in
Houston, Texas.
“Many of the
world’s leading technology companies
in the oil and gas industry are based
in the area, and this ensures that
participants see the cutting edge in
transportation for the energy sector,”
comments Barnwell.
FOLLOW-UP COP 15
Was Copenhagen a failure?
At the UN Climate Change Conference (COP15)
the stakes were high for maritime shipping.
Held in the Danish capital, Copenhagen, at the
end of 2009, the negotiations raised enormous
expectations, but ended in uncertainty. Venture
interviewed four experts to glean the future
direction of sustainable shipping.
Global trade is projected to increase. However,
potential gains in prosperity could be wiped out
if pollution grows at the same rate as the world
economy. Maritime shipping – whose current
total carbon footprint is comparable to that of
Germany – is a significant contributor to greenhouse gases. There were hopes
that COP 15 would unveil an
emissions trading scheme or a
bunker levy, but none emerged.
So was the conference a failure? “No,” says Melanie Moore,
Global Head of Environment at
Wallenius Wilhelmsen Logistics:
“Significant attention was generated in the lead
up to the event and the industry’s commitment to
future reductions was solid. Doing nothing is even
more unthinkable after Copenhagen.”
Eivind Vågslid, Head of the Chemical and Air
Pollution Prevention Section at the IMO, told
Venture that rather than discourage his
organisation, Copenhagen had given
IMO more time to make real progress.
However, he admitted: “At the same
time it creates an increased obligation
on the IMO to intensify its efforts so
that it may be able to present concrete
results to COP 16 [Mexico] and 17 [South
Africa].”
Political wrangling still lies ahead,
but on the technological side the IMO
is confident that major components for
change are in place. An energy efficiency design index
is available for shipbuilders.
The IMO can also guide operators
in the development of plans for
energy efficiency management in
new and existing vessels. These
measures, though, are voluntary.
Connie Hedegaard, who served as President
of COP 15, has now become the first EU climate
change Commissioner-designate. Speaking to
the Parliament, she said that the EU should stick
to the 2011 deadline for including shipping in the
EU emissions trading scheme and that she had
already put pressure on the IMO to speed up the
process in order to find a global solution for the
maritime sector.
One effect of COP 15 has been that ordinary
consumers are more aware that ships have an environmental cost. Pete Lockley, Head of Transportation Policy at WWF UK, observed: “When I began
following the issue I was very much alone, but
by Copenhagen there were 40 organisations
exchanging information on the issue of bunker fuels in shipping: the level of critical
focus has never been higher in terms of
competence and commitment.”
“Doing nothing
is even more
unthinkable after
Copenhagen”
a lot from the UN-organised
forum. How would governments expect industry
to meet environmental imperatives?
Dr. Anne-Marie Warris, the Lloyd’s Register
Group’s leading climate change expert, articulated
the concerns of owners. Blogging from Copenhagen, she wrote that any deal would have to adhere
to the International Maritime Organisation (IMO)
principle of ‘equal treatment for all ships’. Furthermore, the IMO’s authority to design, regulate and
administer climate change commitments through
flag and port states would have to be spelled out
plainly. And finally the use of funds generated by
any schemes would have to be transparent. None
of this wish list came to pass.
Shipping wanted
Davrell Tien
venture 1 2010 17
5
economic
insights
Wallenius Wilhelmsen
Logistics’ Market
Intelligence division
shares its insights on
the global economic
recovery and the
forecast for vehicles,
construction and farm
equipment.
Words WWL MARKET
INTELLIGENCE
18 VENTURE 1 2010
THE ECONOMIC RECOVERY
HAS finally BEGUN
1
With the global recession bottom­
ing out at the end of 2009, there are
now clear signs of a nascent recovery
during the first quarter of 2010. We
anticipate a two-speed recovery in
mature economies this year, with the US lead­
ing the way and Europe lagging behind due
to continued challenges in east and southern
European countries.
However, the road to global recovery will
be bumpy in the early stages. Positive effects
from government stimulus packages, improving
credit conditions and inventory replenishment
requirements are likely to be at least partially
offset by challenging employment conditions,
weak consumer confidence and lackluster
private investment. There are also downside
risks on the radar that could derail the recovery
and trigger a double-dip recession; in particular
when it comes to the timing of the withdrawal
of fiscal stimulus, rising government debt and
fiscal deficits, continued financial sector chal­
lenges with regard to toxic assets, and the risk
of asset price bubbles in selected markets,
notably China.
GLOBAL LIGHT VEHICLE
SALES RESUME GROWTH
2
After two successive years of decline, glo­
bal light vehicle sales are forecast to expand
by 4% during 2010. However, sales trends
will vary considerably between regions. In
Europe, the recessionary impact on sales
was cushioned by generous and long-running vehicle
recycling incentives during 2009 and, therefore, there
will be a price to pay in 2010 in the form of reduced
replacement requirements. Although some countries
will continue to offer vehicle recycling programmes
for all, or part, of 2010, much will depend on whether
key countries opt to offer partial recycling incentives to
ease the transition process during 2010. Our forecast
points to a 5% decline in European sales during 2010
on the assumption that there is a staggered withdrawal
of recycling incentives combined with more aggressive
price incentives from manufacturers.
However, we are more optimistic for the North
American market, where an earlier economic recovery
and signs of pent-up demand is expected to contrib­
ute to stronger sales in 2010. In addition, the short re­
cycling programme offered in the US has ensured that
the payback effect on 2010 sales will be considerably
smaller. Light vehicle sales have expanded at doubledigit levels in the BRIC countries during 2009, with
the exception of Russia where sales contracted by
50%. Nevertheless, in 2010 all BRIC countries should
show positive growth, albeit slower than the incentivecharged expansion witnessed in 2010.
fast facts
MARKET OUTLOOK 2010
CONSTRUCTION INDUSTRY
DIGGING ITSELF OUT
3
The global construction industry is
slowly digging itself out of one of the
deepest recessions on record, and
activity levels in 2010 will show only
marginal improvements on last year.
Government stimulus-driven investments in
heavy infrastructure will contribute to growth,
but the gradual withdrawal of government
stimulus funds combined with continued weak
private investment could undermine any recov­
ery in construction industries, particularly in
mature markets. Construction equipment sales
in both North America and Western Europe are
forecast to be more or less flat in 2010, with a
slow improvement in residential construction
offset by weaker non-residential activity. In the
BRIC countries, Russia will continue to under­
perform in 2010. In contrast, Brazil, China and
India will go from strength to strength. Strong
government support for China’s construction
sector has led to a boom in projects and better
than expected equipment sales in 2009, but
some cooling off in construction activity during
2010 will lead to slower, albeit still positive,
growth in equipment sales. Demand for mining
equipment will increase in 2010 on the back of
rising prices of several key commodities.
MIXED FORTUNES IN
FARM EQUIPMENT SALES
4
The global recession has had a
major impact on farmers’ incomes
through weaker global demand and
lower commodity prices, with tighter
credit conditions also dampening
farmer investment sentiment. Demand for
agricultural equipment started to soften in Q4
2009 in North America, Europe and South
America, but has remained resilient in markets
such as Australia, India and China. In the
US, tractor sales declined by 22% in 2009
and will remain flat in 2010. West European
equipment sales are on a long-term declin­
ing trend, with 2009 sales down 11% and
several European markets expected to post
further declines in 2010. Australia was one
of the bright spots in 2009, with tractor sales
expanding to a record 11,500 units. This was
sustained by good rainfall across many areas
of Australia and the Federal Government’s
Investment Allowance, which offered a tax
rebate of 50% on depreciating capital invest­
ments for businesses with a turnover of less
than AUS$ 2 million. 2010 sales are expected
to remain robust.
PCTC FLEET CAPACITY
IS BEING REDUCED
5
The Pure Car and Truck Carrier
(PCTC) fleet declined in size for the
first time in history during 2009, as
just 59 new vessels were delivered
whilst 106 vessels were recycled.
The drive to remove older tonnage continues
in 2010, with 25 vessels already publicly
committed to recycling during the first half
of the year. No new vessel orders have been
placed since 2008, and we have instead
seen a steady trickle of press reports re­
garding cancellations and conversions; ap­
proximately 50 vessels were removed from
newbuilding orderbook estimates during the
last 18 months. In addition, the gap between
supply and demand across the trade lanes is
closing as vessels have returned to normal
operating speeds after operating at maxi­
mum speeds during the last three years to
compensate for capacity shortages.
VENTURE 1 2010 19
on site
THE HEART OF THE ACTION
ABOUT WWL ANNACIS VPC
Located in the southern part of greater
Vancouver, the Annacis Vehicle Processing
Centre (VPC) is unique. This is not only due
to the number of customers served – includ­
ing BMW, GM, Hino Motor Sales, Honda/
Acura, Hyundai, Jaguar, Kia, Land Rover,
Mercedes-Benz, Mitsubishi, Nissan/Infiniti,
Porsche, Subaru and Volvo – but also due to
the services provided, from simple process­
ing and accessorising to the skills of a
complete paint and body shop. In 2009 the
VPC handled almost 255,800 vehicles, an
increase of five percent – despite a 10-per­
cent drop in vehicle sales in Canada.
LOCATION: VANCOUVER
Annacis – connecting
East and West
The site of the 2010 Winter Olympics is also Canada’s largest
port city. With its position on the Pacific Ocean, it is ideally located
to serve the important trade to and from Asia – and not least the
automobile manufacturers of Japan and Korea.
Words William Ross photos KEVIN JAMES DAY
Ready for unloading
Still wearing their protective coverings, a shipload of Hyundai
­Accents arrive form Korea ready to be brought onshore. Once
in the VPC, they will undergo a wide range of prep work before
­shipment across Canada.
At the port
A view across the northern end of the VPC. Located 32 kilometres
upriver from the ocean, the area’s two deepwater berths are matched
with storage facilities for 13,000 vehicles. In the distance is the
­Fraser River and part of the vast Coast Range of mountains.
20 VENTURE 1 2010
Identifying the work to be done
Vince Singh is a tagger – his job is to place work orders for individual
vehicles at the first point of rest. This is the location on the VPC where
cars are first unloaded, and the proper paperwork marked with bar
codes is placed to indicate the specific work to be performed for each.
Riding the rails
Vehicles are loaded onto trains for transport to Canadian dealers.
The VPC has four rail ramps; trucking companies also carry vehicles
to other locations. Cars manufactured in Europe come to Annacis by
rail after arriving in Halifax on the Atlantic coast.
Adding the accessories
Mechanic’s helper Dave Jeanette attaches side skirts on a Hyundai
Elantra. Depending on dealer orders, the accessory shop may install
side skirts, spoilers, step rails, trailer hitches, block heaters, audio
and electronics – or handle a host of other value-added work.
Topping the tank
As one example of the special requests the VPC might handle, Leo
Tremblay adds some gas to the tank of a car about to be transported to
a local dealer. Whether it’s simply adding owner’s manuals or adding
some pin striping or other details, the Annacis VPC can handle the job.
Skilled service
Cory Nave, another mechanic’s helper, adds splashguards to a Sub­
aru Forester – something the VPC provides for nearly 95 percent
of the manufacturer’s cars coming into Canada. He is one of 195
employees working at the VPC, handling the cargo of three ships.
VENTURE 1 2010 21
During New Year
M/V Talisman
was in drydock
for a scheduled
maintenance
and repair
­programme.
Under
maintenance
Wallenius Wilhelmsen Logistics’ ships are regularly maintained
to ensure maximum efficiency and reliability for customers.
Venture caught up with vessel manager Asle Olsen when
M/V Talisman was in drydock in Singapore for maintenance.
words Phillip Hastings PHOTOS Munshi Ahmed
22 VENTURE 1 2010
T
he arrival of the fleet vessel M/V
Talisman at Singapore’s Sembawang shipyard on December
27, 2009, for a scheduled drydocking, maintenance and repair programme
marked the start of two weeks’ intensive
activity. During that period, the 10-year-old
on the ocean
1
3
2
4
1. Vessel Manager Asle R. Olsen stands in front of M/V Talisman. 2 & 3. The shipyard’s
subcontractors carry out routine pipe work in the vessel’s engine room. 4. Asle Olsen
inspects the main engine’s turbo charger after it has been opened for maintenance and
before all the parts are installed again.
multipurpose RoRo ship was inspected
from top to bottom by two key figures, Asle
Olsen, Vessel Manager for Talisman’s operator Wilhelmsen Ship Management Oslo AS,
and a surveyor from the ship’s classification
provider, Det Norske Veritas (DNV).
Wallenius Wilhelmsen Logistics’
(WWL) ships are regularly maintained to
the highest standards in order to ensure
maximum levels of efficiency and reliability for customers. Such a policy means the
ships also meet the requirements of their
relevant vessel classification organisations,
which typically renew certification every
five years. However, with up to a quarter of
WWL’s 50–60 vessel fleet likely to undergo
planned major maintenance and repair in
any one year, a process which can involve
a ship spending 14–16 days in a drydock,
careful management of such operations is
vital to sustain the integrity of the company’s worldwide service schedules.
the relevant ship manager, we make a plan for when and where
the maintenance work on a particular vessel is going to take place to fit in with our
tonnage plans and scheduling. Normally,
when we enter a new year, we have already
drawn up plans for the whole fleet for the
“Together with
rest of that year,” says Geir Fagerheim,
WWL’s Head of Fleet Management, Tonnage & Trade, Ocean Global.
When M/V Talisman arrived in Singapore, Asle Olsen first checked the ship
to confirm precisely what maintenance/
repair was needed and then oversaw the
carrying out of the necessary work. The
surveyor assessed the Talisman to make
sure all aspects of the vessel met the
standards required for DNV to renew its
certification for a further five years.
“When a vessel comes into drydock, we
normally already have a planned schedule
of work which needs to be carried out –
we seldom find something major we were
not expecting,” explains Olsen.
to have a plan drawn up
in advance because a lot of spare parts are
involved and we have to make sure those
are all available when the ship arrives in
order to minimise the time it spends in
drydock and out of commercial service.”
Predictably, much of the focus when
a vessel is drydocked is on checking and,
where necessary, repairing/restoring
those parts such as the hull, propeller
shafts and seals which are normally close
to or below the water line.
“It is necessary
CHECKLIST
drydocking
Jobs carried out on the hull during
M/V Talisman’s Singapore drydocking included:
✓ Repairing a piece of damaged seam.
✓ Spot blasting and painting the stern
ramp.
✓ Replacing the hoses under the ramp.
✓ Overhauling and repacking the lifting
cylinders for the stern door.
✓ Renewing the Cathelco ICCP (Im­
pressed Current Cathodic Protection – a
system to protect the hull from corrosion).
✓ Cleaning, washing down and recoating
the chain lockers.
✓ Grit blasting, washing down and fully
coating the flat bottom, bottom sides, rud­
der and part of the top side.
In addition to the hull other parts of
the Talisman to be inspected and,
where required, have elements overhauled, repaired or replaced included:
✓ The main and auxiliary engines and their
components, including an overhaul of the
fuel pumps by their maker, cleaning of the
boiler and economiser, and the testing of
various valves.
✓ The ballast and bilge systems.
✓ The lifeboat and fire fighting systems
and equipment.
✓ The decks and superstructure.
✓ Manoeuvring machinery and equipment,
including checking the propeller blades
of the side thrusters and grit-blasting the
thruster channels.
✓ Anchoring, mooring and towing equip­
ment.
✓ Cleaning and garbage disposal sys­
tems, workshop, equipment store.
“The regular cleaning and repainting
of the hull is an important element of the
maintenance programme for the Talisman, as it is for other vessels,” says Olsen.
“Doing that work enables the ship to go
through the water more smoothly, reducing fuel consumption and producing both
environmental and cost-saving benefits.”
“All the work on the Talisman was completed to plan and the ship was actually
ready to depart the drydock on January 9,
one day ahead of schedule,” reports Olsen.
After leaving the drydock, the Talisman
loaded around 9,000 tonnes of natural
rubber, wood deckings and some noncontainerised cargo (NCC) and set sail for
the US.
VENTURE 1 2010 23
our industry
market outlook
CHINA: THE WORLD’S
BIGGEST AUTO MARKET
New car and truck sales in China shot
up last year to 13.6 million units, making
China the world’s largest auto market. It
is the first time in history that any country has bought more autos than the US;
car and light truck sales in the US were
just 10.4 million in 2009.
But it would be wrong to assume – for the
moment, at least – that these figures signal
a shift in the global powerbase of car manufacturing, according to John Bonnell, director
of forecasting for JD Power Asia Pacific,
the leading automotive market information
provider.
“Chinese car manufacturers are building
locally for the local market, largely that’s
true,” he says. “The research and development capability is not there yet and, for a
lot of components and technology, they are
relying on joint ventures with established
global companies.”
While some importing of foreign brands
into China is possible, it represents a tiny
fraction of the local market and is mostly
confined to premium brands such as BMW
and Mercedes-Benz. In order to make and
sell cars in China, global car companies have
to form, by law, a joint venture with a Chinese partner, leading to complex industrial
structures.
Shanghai Automotive (SAIC), the largest
automaker in China, partners with General
Motors and Volkswagen, among others.
Dongfeng is partnered with PSA Peugeot
Citroën, Honda and Kia while First Automobile has joint ventures with Toyota, Audi
and Volkswagen and sells under at least ten
different brands.
The boom in new car sales, up by 48
percent in 2009, has been stimulated by
government tax cuts on smaller autos and,
while growth will slow in 2010, Bonnell says
“all the indications from the Chinese govern-
24 VENTURE 1 2010
ment are that they will continue to support
the industry.”
He expects sales to be up a further six
to eight percent in 2010 but then sees a
slowdown in 2011 because the incentives will
have pulled demand forward.
Bonnell says Chinese car buyers are a
“mixed breed”.
There are still nationalistic buyers who
want to buy Chinese brand cars but more
expensive, global joint venture cars carry
with them an element of prestige. The 100
percent Chinese brands are more successful
in the basic car segments but the biggest
sellers overall are global small family cars;
Corolla, Focus, Civic.
“There is also a strong demand for larger
family cars - Camry, Accord, Passat,” he says.
“These were the first types of private car to
be sold in China, initially to company officials
and families with more money.”
The Chinese government retains a big in-
fluence on the car industry and all the major
car companies are state or local government
owned. The most significant exception is
Geely which is just completing the purchase
of Volvo from Ford and is, according to
Bonnell, the “most progressive in terms of
acquiring foreign assets”.
But, with an adult population estimated at
just over one billion people, the Chinese and
foreign joint-venture carmakers will continue
to focus on the domestic market for the
immediate future, especially because there
is now more rapid economic growth in inland
regions of the country.
“Don’t get me wrong,” comments Bonnell.
“Everyone is under enormous pressure and
there is an overriding ambition for China to
become a global player in the motor industry.
But it will be some time before they are
strong enough to influence international
markets.”
Rupert Saunders
China’s
vehicle
production
2000–2009
MILLION UNITS
PER YEAR
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2.07
2.33
3.25
4.44
5.07
5.71
7.28
8.88
9.35
13.8
LEADING CHINESE CAR MANUFACTURERS 2009
1. Shanghai Automotive
Industry Corporation
Own brands & J-V with General
Motors and Volkswagen.
2. Chang’an Automobile
Group
Own brands & J-V with Ford,
Mazda and Suzuki.
3. First Auto Works Group
Corporation (FAW)
Own brands & J-V with Audi,
Toyota and Volkswagen.
4. Dongfeng Motor Corporation
Own brands & J-V with Honda,
Hyundai-Kia, Nissan and PSA
Group.
5. Brilliance
Automotive
Own brands & J-V
with BMW.
Source: JD Power
VENTURE 1 2010 25
inspiration
68
percent of automotive CEOs
plan to change their companies’
organisational structure.
Source: PriceWaterhouseCoopers
13th Annual Global CEO Survey.
It took
“Britain
WWL helps
GM prepare for
winter games
One of the indisputable highlights
of the sporting calendar – the 2010
Winter Olympic and Paralympic
Games – recently took place in Vancouver, Canada. In preparation for the
event, WWL assisted official sponsor
General Motors (GM) Canada with the
delivery of an extensive fleet of vehicles for use at the Games. We asked
Howard B. Williams, head of WWL’s
Canadian processing business, how
this exciting partnership came about.
What was GM’s role at the Winter
Games in Vancouver?
“GM Canada was a national partner
of the 2010 Winter Olympics. As the
official vehicle supplier, GM provided
a fleet of more than 4,600 vehicles
for use by organisers, athletes, media,
government representatives and
volunteers before and during the
Games.”
How did WWL support GM in this
context?
“WWL’s Vehicle Processing Centre
on Annacis Island is the destination
rail ramp for all GM products bound
for British Columbia. Our extensive
facility and ability to handle large
26 VENTURE 1 2010
volumes fitted in well with GM’s requirements. We received the railcars,
offloaded the vehicles, parked them in
our delivery zone and prepared them
for forwarding to the next location.”
Why did GM choose WWL for this
project?
“We have been GM’s suppliers for
more than 25 years and have a wellestablished relationship with the company and its local dealers. GM was
confident that we had the capacity to
handle this challenging assignment,
which involved processing at least 100
vehicles a day for more than 40 days.”
What feedback have you received
from GM?
“GM’s Vehicle Coordinator for
the Vancouver 2010 Olympic Project,
Marilyn Amos, recently sent me the
following message: ‘All vehicles have
been delivered, thanks for the great
job providing the tracking report and
all the work required to get the vehicles here for the Olympics!’. It means
a great deal just to have played a
small part in GM’s contribution to the
2010 Winter Olympics.”
Isabelle Kliger
half the
resources of
this planet to
achieve its
prosperity.
How many
planets will
India require
for development?
”
Mahatma Gandhi on the eve of
India’s independence.
14
percent of the world’s
greenhouse gas ­emissions
come from the 27 EU
­member countries.
Source: European Commission
ASK
THE
Captain
A mixed bag of
expectations
According to the World
Henrik Meyer, captain of M/V Aniara
What is ballast water and why is it
so important to handle it properly?
Ballast is necessary to keep
the ship stable. Simply said, the
ballast is weight in the ship and
is mainly used when there is no
cargo onboard or when the vessel
is only partially loaded. If there is
no cargo onboard the ship is in
ballast condition.
Today, we use water as ballast. But in the early days of sailing, cargo vessels used stones
as ballast.
The vessels have special ballast tanks which are used only
for ballast water. The M/V Aniara
can take in approximately 8,000
metric tonnes of water – water
that will be released when the
vessel is loading.
The transfer of ballast water
between the world’s oceans and
sensitive marine ecosystems
has become one of the greatest
environmental threats of modern
times. International regulations
have been put in place to reduce
the transportation of foreign
organisms between different
geographical areas.
For example, the International
Maritime Organisation (IMO)
convention requires all merchant
vessels to install a system for
handling and purifying ballast
water. Wallenius has developed a ballast water treatment
system, together with Alfa Laval,
which cleans the ballast water
without using chemicals before
the ballast water is released.
This system was the first to be
approved by the IMO and is
currently being installed on all
Wallenius vessels.
ASK THE CAPTAIN:
What would you like to ask the
captain? Send your questions to
[email protected].
G al
Econolombic
Prospects
Bank’s “Global Economic
Prospects 2010” outlook
summary, “the acute
phase of the financial
Crisis, Financ
e, and Gro
wth
crisis has passed and
a global economic
recovery is underway. The recovery
is fragile and expected to slow in
the second half of 2010.” The World
Bank states that employment
growth will remain weak and unemployment is expected to remain
high for many years.
The overall strength of the
recovery and its durability will
depend on the extent to which
household- and business-sector
demand strengthens during 2010.
Trade is also recovering mainly due
to lower commodity prices which
are helping to increase volumes.
“Although the real-side effects
of the crisis have been large and
serious, economic activity in most
developing countries is recovering
and overall growth is expected to
pick up from an anaemic performance of 1.2 percent in 2009 to 5.2
percent in 2010 and to 5.8 percent
in 2011,” according to the outlook.
Bremerhaven harbour.
upcoming events 2010
Apr 18–Apr 20
Automotive Logistics China
The conference will be held in
Beijing. The theme is “The rise of
the 3PL” – changing the model of
logistics management in China.
More information:
www.automotivelogisticschina.com
May 11–May 13
Automotive Logistics North
America
The conference will be held in Long
Beach, California. Focus will be
on Finished Vehicle Logistics. The
conference is dedicated to the improvement of efficiency and quality
of service in this vital sector.
More information:
www.fvlnorthamerica.com
May 17–May 19
Automotive Logistics South
America conference
The conference will be held in Sao
Paulo, Brazil.
More information:
www.automotivelogisticssouthamerica.com
May 18–May 20
JOC Breakbulk Europe
­conference and exhibition
The conference will be in Antwerp,
Belgium.
May 18–May 20
RoRo conference. The conference
will be held in Bremen, Germany.
More information:
www.roroex.com
VENTURE 1 2010 27
2010
ECONOMY
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Ford Europe on recession
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Economic overview 18
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