Venture 1 - Wallenius Wilhelmsen Logistics
Transcription
Venture 1 - Wallenius Wilhelmsen Logistics
A shake-free ride WWL’s innovative way to ship railcars Insight 2012 Hot topics for global business Barcelona bound Gateway to the Mediterranean “ The more liability you request, the more you pump up the rates” wallenius wilhelmsen logistics magazine for customers issue 1/2012 Craig Neame Maritime lawyer EYE ON RUSSIA Record year for automotive industry Page 24 WWL does it for dOosan Page 8 venture 01.2012 CONTACT CONTENT Venture no 1 MARCH 2012 Published by Wallenius Wilhelmsen Logistics AS, Box 33, N-1324 Lysaker, Norway 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 Arnaud Siquet Next issue June 2012 Copyright Texts and images in Venture may not be republished without permission from the editor or publisher responsible. Printer Trydells, Sweden WWL contact details: Region Americas +1 201 307 1300 Region Asia +81 3 6858 8711 Region Europe +46 8 772 0800 Region Oceania +61 3 8605 8000 6 Smooth commute for railcars Just as the passengers of these Kawasaki railcars will soon enjoy a comfortable commute, they deserved an equally smooth ride with WWL from Japan to the US. 13 My fault or yours? Craig Neame, maritime lawyer, explains the thorny issue of liability in supplier contracts and how you can avoid being ‘over-insured’. 17 The future is Zero+ WWL partners with the Savannah Ocean Exchange to help fund bright ideas towards a zero-emissions future in maritime transport and logistics. 20 On site Barcelona Find out how the WWL office in Barcelona helps provide a seamless journey to Europe and North Africa. If you have any comments related to Venture or questions about subscriptions, please email: [email protected] 14 Panama Canal cruise The 12-hour trip through the jungle surrounding the Panama Canal makes a pleasant break for ship crews from the open seas. 16 Outsourcing checklist WWL – together with Finished Vehicle Logistics magazine – explores the traps, challenges and advantages of outsourcing your supply chain in this free online webinar. 2 venture 1 2012 24 Eye on Russia 2011 was a record year for light vehicle production in Russia. Competition in this growing market is heating up amongst local and foreign players. EDITORIAL The art of listening In the hot seat 18 Some issues which raised their heads in 2011 look set to stay in the spotlight during 2012. WWL reveals five topics to follow closely this year. 8 A perfect partnership Using WWL as a one-stop-shop has helped Korean manufacturer Doosan to cut out multiple suppliers and reduce the risk of delays and goods getting damaged. Our goal at WWL is clear: we offer sustainable solutions to help our customers deliver their products from their factory to the dealer or end customer – on time, in perfect condition, and as efficiently as possible. And we like it when these words are put into action. Inside Venture, you can read about our relationship with Korean manufacturer Doosan and how we helped them to consolidate their supply chain to reduce the risk of delays and damage to their cargo. However, we can’t do our job properly without listening carefully to your needs and thoughts. There is no such thing as one size fits all. Each customer is unique – and every company has a different strategy and a different set of logistics needs. It’s our job to make sure that we come up with innovative solutions that match – and exceed – your needs and expectations, both now and in preparation for the future. In this issue of Venture, you can also read about our new approach to managing customer feedback. Starting six months ago, every customer is given the opportunity to evaluate our service via a short online questionnaire. We have received invaluable input which helps us to identify our strengths and weaknesses and to further improve our offering in the future. We will continue to conduct surveys like this on an ongoing basis, thereby ensuring that all our customers are given the opportunity to voice their opinions. You might also have noticed your WWL contact showing an increased level of curiosity in your business lately. This is also part of our approach to stay in even closer touch with our customers’ needs, so we have a better understanding of your requirements. Winston Churchill once said: “Courage is what it takes to stand up and speak; courage is also what it takes to sit down and listen.” We appreciate you challenging us to do our job better and embrace the opportunity to help you improve efficiency and reliability in your supply chain. I encourage you to share all feedback – positive and negative – with us! I hope you enjoy reading this issue of Venture! arild B. Iversen President & ceo, Wallenius Wilhelmsen Logistics venture 1 2012 3 network update MV TYSLA MV Tysla and MV Titania join WWL’s global fleet W allenius Wilhelmsen Logistics is proud to welcome the MV Tysla, its third Mark V RoRo vessel, and the MV Titania, a Large Car and Truck Carrier (LCTC). These two vessels represent the very latest in high-efficiency, sustainable shipping. The MV Tysla is a sister ship to the MV Tønsberg and MV Parsifal, which were delivered by Mitsubishi Heavy Industries last year. WWL has ordered four vessels in the Mark V class – a pioneering new type of ship designed for maximum flexibility, which is able to efficiently transport a unique mix of High & Heavy and other cargoes. A number of energy-saving features also combine to make the Mark V the most fuel-efficient vessel on the market, reducing emissions per cargo unit by 10 to 15 percent compared to its predecessors. Meanwhile, the MV Titania is the 7th generation of it’s design from DSME in South Korea. At 230 metres long, with a cargo capacity of 8,000 cars – or a combination of 3,486 cars and 466 trucks or buses - the LCTC is the largest, most flexible vehicle carrier on the ocean. news in brief enhanced service from North America to Oceania Wallenius Wilhelmsen Logistics has announced further improvements to its ocean service from North America to Oceania. In Oceania Tech Services goes solar WWL Oceania’s Technical Services facility in Laverton, Melbourne, has installed an 4 venture 1 2012 worth 3.3 MWh – equivalent to a car travelling 19,059 km or an Australian electricity bill worth AUD 960 (EUR 800) – since its installation in November. This is part of WWL’s Castor Green Terminal concept, which is seeking to develop a zero-emission terminal for the future. response to growing customer demand, a fifth monthly sailing has been added to the busy trade route, which has also been extended to include port calls in Galveston, Texas, along with a direct monthly vessel call to Adelaide, South Australia. 18Kw solar panel system on its workshop roof. The system, which is estimated to cover up to 33 percent of the electricity needs of the facility, has produced energy Signing Singapore Green Pledge WWL recently joined 14 other classification societies and ship- Q&A “We will grow alongside our customers in Russia” New processing facility opens in Shanghai a new processing centre in Shanghai. The 210,000-square metre facility will have a storage capacity for 6,000 cars. More than 100,000 vehicles are expected to pass through the new centre in 2012. “With covered storage, pre-delivery inspection (PDI) and fitment workshops, this state-of-the-art Vehicle Processing Centre will be a great asset for our customers using the Shanghai gateway,” says Xavier Leroi, WWL’s Managing Director in China. “With the potential to extend the area well beyond 300,000 square metres, we are ready to meet the growth in the Chinese auto market.” WWL is opening grand opening in panama WWL has opened a new Equipment Processing Center (EPC) in Manzanillo, Panama. On 6 March, customers gathered to pay a visit to the newstateof-the-art heavy equipment processing and storage facility. After the ceremony the guests toured the Manzanillo International Terminal, located conveniently just across the road from the EPC. Special guests at the event included Mr. Pedro Rios, Governor of Panama’s Colon Province, and Mr. Carlos Urriola, General Manager of the Manzanillo International Terminal (MIT). ping lines in signing the Maritime Singapore Green Pledge. A total of 28 organisations have signed the Green Pledge, which requires members to act as responsible representatives of the international maritime community by supporting and promoting clean, green shipping in Singapore. “This shows that more companies are making environmental thinking part of their business strategy, thereby giving them a competitive advantage,” says Jane Krishna, Head of WWL’s Singapore Branch. Wallenius Wilhelmsen Logistics (WWL) recently reinforced its foothold in Russia by adding a new office in Moscow to its existing presence in St. Petersburg. Venture caught up with WWL’s Managing Director for Russia, Søren Tousgaard Jensen, to learn more about his plans for this fast-growing market. Why has WWL opened an office in Moscow? “Moscow is the central vehicle logistics hub in Russia – a market that, following a brief setback in 2009, is experiencing rapid growth in the automotive and rolling equipment sectors. As importers in these segments, as well as foreign companies establishing a presence here, tend to base their main offices in Moscow, we need to be nearby to support their logistics needs in the best possible way. The Russian capital is also a major rail and trucking hub, which is key to our ambition to deliver a complete factory-to-dealer solution.” How do you expect the Russian market to develop? “The mining industry in Russia is already substantial and we expect it to continue to grow in the coming years. Meanwhile, the infrastructure will become more developed, while the farming sector is likely to become more modernised. As the economy continues to grow, more cars will be sold, resulting in a significant increase in imports, even as local production continues to expand.” What are WWL’s key goals in Russia over the coming years? “We intend to grow alongside, and together with, our customers in Russia. This means building our capabilities, in order to provide our global and local customers with the same diversity of services that we offer in other parts of the world.” What is WWL’s position in Russia and how will this progress going forward? “While St. Petersburg will remain our primary location for imports and exports, we expect the port of Ust-Luga to grow in importance, mainly in the High & Heavy (H&H) and breakbulk segments. Our terminal in Kotka will also continue to play an important part in the Russian import market. We will continue to seek better solutions for RoRo cargo entering Russia – particularly in the Black Sea and Russian Far East, both of which suffer from a lack of viable entry ports.” venture 1 2012 5 IN THE CARGO Smooth transit for Kawasaki Rail Cars railroad in the United States took a big step into the future when it ordered a completely new fleet of rail cars to replace its aging trains – some of which have been in service since the 1970s. The Metro-North Commuter Railroad, commonly known as Metro-North, provides a service between New York City and Connecticut; for the 380 new railcars for the New Haven Line it selected Kawasaki Rail Car, Inc. Of these, 38 were built in Japan and transported to the US by Wallenius Wilhelmsen Logistics (WWL). While rail travel is one of the most efficient ways of moving passengers, particularly in the highly populated areas around New York City, moving rail cars that are not on the rails is a challenging task. Each one of cars, known as the M-8 series, is nearly 26 metres long, 3.2 metres wide, and weigh between 65.2 and 65.7 tonnes. They are big, ungainly, and often difficult to get onboard a ship. “Normally, with a bulk ship, the rail cars have to be picked up by crane and loaded onto the ship,” explains Ken Takeda, Assistant Manager, Contract Administration and Marketing, Kawasaki Rail Car. “The trains are very heavy, and picking them up in an ocean area means the possibility of wind gusts affecting loading and unloading operations.” With WWL, however, the cars were instead jacked up and loaded onto rubber tyre bogies The busiest commuter (RTBs)—a much easier and safer process—and then simply pulled onto WWL’s roll-on roll-off (RoRo) vessels. WWL’s Michiya Seki explains the entire process. “The rail cars were first loaded onto barges at Kawasaki’s factory in Japan, and then brought to the port of Kobe,” he says. “The rail car bodies and bogies were transported separately. We took over the responsibility for them once they arrived in Kobe, taking them by crane off the barge (a far easier process than loading onto a tall ship), and setting them directly on the RTBs. Then, once the vessel arrived in Baltimore, we brought them to the railway terminal.” “The entire process was very safe and very fast,” says Anthony Clarizio, M-8 Project Manager for Kawasaki Rail Car. “Because of WWL’s RoRo style of shipping, it also meant that the cars were stored below deck, which provided even more safety and much more protection for them. The advantage of the RoRo system for us was clear; the experience went very well.” “One of the benefits of using WWL is that all the operations are so well coordinated and smooth,” Takeda adds. “It’s well controlled because of the roll-on, roll-off method of loading and unloading, and because the timing of the “The entire process was very safe and very fast ” 6 venture 1 2012 arrival of the ship in port is almost exactly the same date every month. With bulk ships, if it’s raining or snowing hard, sometimes the loading is postponed, and loading a train by crane is basically a whole-day activity. With WWL, loading on the RTBs was done prior to the ship arriving in port, so once the ship arrives loading only takes a couple of hours.” This is not the first time for Kawasaki Rail Car and its Japanese parent, Kawasaki Heavy Industries, Ltd., to work with WWL. The first was a project bringing rail cars to Taiwan in 1992; since then, some 1,000 Kawasaki railcars have been carried by WWL. relationship with WWL, since I was previously stationed in Kobe,” Takeda says. “I’ve dealt with a lot of carriers, but with WWL we have had the least number of troubles and the lowest levels of damage. In fact, about 10 years ago we shipped some 400 to 500 subway car bodies from Japan to the US, and I had no problem with damage. It was just perfect!” “I’ve had a long words William Ross Photo Jun Takagi Kawasaki in brief Based in Kobe, Japan, Kawasaki Rail Car (in the US)/ Kawasaki Heavy Industries Rolling Stock Company is a division of major manufacturer Kawasaki Heavy Industries, Ltd. The company produces a wide range of rolling stock, from subway cars and light rail vehicles to freight cars, locomotives, and even the famous Shinkansen ultra-high-speed trains of Japan. It is increasingly providing rolling stock for international clients, and has an overseas production facility in Yonkers, New York and Lincoln, Nebraska, US. venture 1 2012 7 SEAMLESS JOURNEY DOOSAN Harmony and quality are two key principles for Doosan Infracore Construction Equipment, a leading Korean manufacturer of construction machines, with which Wallenius Wilhelmsen Logistics has had a business relationship for around 20 years. That’s why Doosan was one of the first customers to sign up when WWL opened its first processing centre for rolling equipment in Zeebrugge, Belgium, in 2008. one-stop shop for doOsan Words Isabelle Kliger PHOTOs Arnaud Siquet MACHINES 8 venture 1 2012 KO RE T hree years on, Cormac Tracey, Logistics Director at the European Head Office in Waterloo, Belgium, is quick to confirm that, by consolidating its ocean and technical services with one supplier, Doosan has been able to secure a more efficient, integrated export process, as well as realising significant quality gains. “Doosan’s focus is on complete quality management and our long-standing partnership with WWL is a key feature of this,” he says. “Every time a product changes hands, it increases the risk of delays and damage. Now that we have one partner from start to finish, we’ve ensured visibility across the entire supply chain.” A One KPI looks at the no-claims rate and Didier Verhoeven explains that WWL is currently performing at a rate of 99.9 per cent against a target of 98 per cent. 1 “We’ve set the bar very high and the standard is generally excellent,” adds Tracey. “In the last six months, we’ve had only one warranty claim against the equipment that WWL has handled. In my opinion, the measure of a good partner is its willingness to work together and solve a problem when something goes wrong.” WWL’s European Account Manager, Didier Verhoeven, has just travelled to Waterloo for his monthly meeting with Cormac Tracey. Together, the two have developed a set of Key Performance Indicators (KPIs) that are used to evaluate the work carried out by WWL in Zeebrugge. They meet every month to follow up on the progress and discuss opportunities for improvement. “We both agree that the overriding focus has to be on quality,” Verhoeven explains. “If something’s gone wrong, Doosan will want to know why, so it’s up to us to look carefully at each individual case.” Doosan products are being loaded for ocean transportation from Korea at dawn. WWL’s European Account Manager, Didier Verhoeven, in Waterloo for his monthly meeting with Cormac Tracey, Logistics Director at Doosan’s European Head Office. venture 1 2012 9 After the machines roll off the ship, they go straight into the terminal and processing centre. 10 venture 1 2012 all the documentation, along with any necessary modifications and painting. “Our processing centre in Zeebrugge is literally on the dock,” Verhoeven explains. “So the machines roll off the ship, straight into our terminal and processing centre. To the best of my knowledge, WWL is the only company in this business who can offer specialist PDI and modification services of this kind for rolling equipment.” “Not only does WWL offer a unique level of technical expertise, it also has a EB P rior to 2008, Doosan had been sourcing the services that are currently provided by WWL in Zeebrugge from three separate suppliers. When the construction machines were discharged in Rotterdam, they were transported by road to a centre in the Netherlands, where they were prepared for onward transportation. Now, Doosan’s machines are rolled off the ship in Zeebrugge into the WWL terminal, where they are immediately inspected, cleaned and prepared for delivery. WWL handles ZE SEAMLESS JOURNEY DOOSAN R UG keen understanding of our industry and its needs,” adds Tracey. “We’re always looking for ways of expanding the partnership – both geographically and across the Doosan product range.” In addition to the five-year contract recently signed by Doosan and WWL for ocean transportation, a three-year contract extension has also been agreed for Pre-delivery inspection (PDI) services in Zeebrugge. 2 GE TE WA R A Doosan DX420 crawler excavator has been delivered to the construction site of the end customer, AGCTT in Noordpeene, France. W LO O e’re very proud to have signed this new contract,” says Cheul Young Kim, Corporate Account Manager for Doosan and Head of Commercial for rolling equipment at WWL Korea. “We look forward to helping our partners at Doosan develop new synergies and efficiencies across its global export business.” 3 WWL has been providing ocean transportation for Doosan products going from Korea to the US and Europe for approximately 20 years. Since 2008, WWL has also managed a technical services contract, encompassing some 1,500 excavators and wheel loaders annually, for Doosan at its processing centre in Zeebrugge. WWL also provides technical services in Tacoma, on the US west coast, for Doosan units bound for the US market. The service offering at Zeebrugge includes receipt and arrival checking, washing and PDI services, modifications and paint shop, storage and warehousing, customs and documentation, as well as transshipment and delivery for inland transportation. ABOUT Doosan Doosan Infracore Construction Equipment is a global alliance of brands, comprising Doosan, Bobcat, Montabert and Geith. Its comprehensive range of construction equipment includes excavators, wheel loaders, articulated dump trucks, telescopic handlers and skid-steer loaders. Doosan Infracore Construction Equipment is part of the Doosan Group, the longest standing and fastest growing corporation in Korea, with 38,200 employees and a network of more than 3,500 dealers worldwide. venture 1 2012 11 INTERVIEW: Craig Neame Craig Neame Job title: Maritime lawyer at London-based legal firm Holman Fenwick Willan Based: London, UK Age: 41 Family: Wife, Yanna, and fouryear-old daughter, Charlotte Background: Responsible for managing Holman Fenwick Willan’s logistics and liner shipping practice across 14 offices globally. Clients include top-10 global freight forwarders, top-15 container shipping companies and leading RoRo operators; has been a board member of a large logistics company in the UK. Hobbies: Cycling, running, theatre, music, history. “Try to get the proper balance between risk and reward” The murky waters of liability 12 venture 1 2012 The issue of who is liable for risk in a logistics contract is a thorny one which can turn nasty if it ends in court. Maritime lawyer Craig Neame explains why what is put down on paper does not always match the reality. Words Alannah Eames PHOTO Rena Pearl I n today’s turbulent economic times, many companies have turned risk-averse, trying to shift the burden of unlimited liability on to their service providers, expecting them to shoulder all the costs in the event of an accident. This can often backfire on both parties, argues Craig Neame, maritime lawyer at London-based legal firm Holman Fenwick Willan. The first issue, he says, is that many large companies still use standard purchasing contracts for products and services alike. “While they are carefully thought through, they are not really geared towards logistics activities like the storage of vehicles,” he explains. “They often deal with topics like title to goods, warranties about goods conforming to specifications, and obligations to obtain export licenses – all of which are irrelevant at best or confusing and problematic at worst. This is in neither party’s best interests.” In addition , these standard purchas- ing contracts often expect the logistics provider to accept unlimited liability. This means that, if an accident occurs, the logistics provider is liable for the full value of the goods and consequential loss covering anything from damage to the customer’s reputation to loss of sales or profits. This can be a challenge for logistics providers because their standard insurance policies will usually only cover limited liability. Some providers may be prepared to accept unlimited liability without extra insurance, but customers should only accept this offer if they are sure that the logistics provider’s balance sheet will be strong enough to respond to claims. “Having an insurer behind a logistics provider means faster settlement of claims, professional claims management and it also removes the emotion from the dispute, which helps sustain the relationship over the long term,” says Neame. Companies buying logistics services, he believes, need to develop specific logistics contracts which reflect their supply chain needs. Or, if they decide to stick to their generic contracts, they should modify the conditions to fit in with their logistics activities. Nonetheless, some companies remain adamant that the service provider should accept unlimited liability for their goods. This can have a serious impact on the customer in terms of costs and quality. Not only will the extra insurance costs push up the price of the logistics quotation, but, even if the logistics provider puts the extra insurance in place, it rarely covers the total liability exposure amount because force majeure events tend to be excluded. “This means the customer might think he is fully covered when the reality is somewhat different,” says Neame. Having a clear logistics contract in Some logistics companies may refuse place that both parties have agreed upon the business if they feel the extra insuris essential for avoiding future strife. ance cost simply makes their offer un“It’s just as bad for the customer as for profitable. As a result, the customer risks the service provider when contracts are attracting what Neame terms “reckless” ambiguous … [they] can end up arguing service providers who take shortcuts to over the ambiguities which can destroy come up with lower quotations but do not the relationship. They can also end up in have adequate insurance in place. This a legal battle in the courtroom, which can can prove more costly in the long run if be very costly,” he warns. something goes wrong. “If the service It may sound easy, but in reality provider goes bankrupt, for example, deciding who is liable for what can be you could end up worse off – maybe your a minefield. Should you include or ex- goods end up in the wrong hands or your clude strict liability in a contract with cargo gets stuck en-route.” a service provider? “You should ask yourself ‘what are you So how much insurance cover should you take out in relation to a contract? really engaging your logistics provider “The insurance obligations and liability for – to be an insurer or a supplier of services?’,” says Neame, adding that most regime imposed on a logistics provider need to be onerous enough to keep him multinationals have large buying power disciplined and dedicated to high standfor property insurance and are already paying a high premium to cover physical ards of service, but not so huge that they loss of their goods in case of an accident. are crippling and make his business unprofitable,” concludes Neame. “Try “If I ask a logistics firm to buy an insurto get the proper balance between risk ance policy for my shipment, they need to go out and buy another policy on top of and reward. And, remember, the more what I already have, so I am paying twice liability you request, the more you pump up the rates for the services.” for the same insurance.” venture 1 2012 13 Panama Canal the Panama Canal The Panama Canal is an 82-kilometre ship canal in Panama that connects the Atlantic Ocean to the Pacific Ocean. The canal cuts across the Isthmus of Panama and is a key conduit for international maritime trade. The making of the Panama Canal in 1914 was a US$14 billion project that changed the maritime routes all over the world, created a new country and transformed its territory forever. 12 hours across a continent In the locks MV Tamerlane finishes its 12-hour passage from the Atlantic to the Pacific Ocean. 14 venture 1 2012 Ship in the jungle The bridge watch keeps a keen eye as the ship glides through Panama’s jungle. A/B: Master Captain Jan Mikael Sigurd keeps watch as his ship passes through the Panama Canal. For shortcuts in commercial shipping, nothing beats the Panama Canal. We joined the RoRo vessel MV Tamerlane with its crew of 29, making the 12-hour crossing through one of history’s largest works of engineering, and a major crossroads for international maritime trade. W e joined the 67,140-tonne MV Tamerlane early in the morning at Cristobal Port in Colon Province, for the passage from the Atlantic to the Pacific in a lapse of time that would have been unthinkable for any ship 98 years ago. The captain, Swede Jan Mikael Sigurd, leads a diverse team of 18 Filipinos, four Norwegians, three Indians and three British sailors. With 40 years of experience at sea – 13 as captain and five leading the MV Tamerlane crew – Sigurd is very familiar with the Canal after more crossings than he can count. “It’s a long day. We start early in the morning and we hope to be out early evening or late afternoon,” he explains. “We have done this many times. The quicker, the better.” running on rack tracks, known as mulas (mules), carefully guide the MV Tamerlane just inches from the hull. The cracks on the lock’s walls are evidence of a few previous miscalculations. Most of the time, however, like this one for the MV Tamerlane, it goes safely and almost effortlessly. Built in 2001 by Daewoo, the MV Tamerlane until the Panama Canal Authority instructed all pilots at the canal to stop for two hours due to heavy traffic. Nineteen vessels crossed the Canal on this busy day. By the time the ship reached the Americas Bridge and ventured into the open waters of the Pacific, it was dark again. Looking back to 1974, Sigurd recalled the first time he passed through the Canal as a deck hand: “I just wanted to see the world and have some fun, and here I am, still having fun!”. The Panama Canal expansion is a Mark IV generation RoRo ship. On this occasion, it is mainly carrying European cars headed for the Australian and New Zealand markets. “This is a very nice ship, with good equipment; it’s my favourite vessel,” says Sigurd. To be on board such a huge ship built for crossing the world’s oceans, it is an almost unreal feeling to be gliding through dense jungle. Jungle sounds are not something typically associated with life on board. During the crossing, we see the on-going expansion works - the multimillion dollar effort by the Panama Canal Administration to create two new postpanamax sized lock complexes. Across Lake Gatun, one of the largest man-made lakes in the world, the MV Tamerlane was able to increase its speed. By the afternoon, it seemed this crossing would be shorter than average, The increasing numbers of larger ships in the Panama Canal has necessitates changes to the canal. An enlargement scheme to allow for a greater number of transits and the ability to handle larger ships, has been approved by the government of Panama and is in progress, with completion expected in 2014. The project will double the canal’s capacity to allow more traffic and the passage of longer and wider ships. The current plan is for two new flights of locks to be built parallel to, and operated in addition to, the old locks. The Grupo Unidos por el Canal (GUPC) has started the construction of 16 doors – each one weighing 50 tons - for the new set of locks. The concrete work for the new locks started in October 2011. The new set of locks will be 426.72 meters long and 54.86 meters wide, with depth 18.29 meters. Business as usual Busy waterway New entrance Fitter Tirso Santiago is far too busy in the ship’s workshop to have time to enjoy MV Tamerlane’s passage through the Panama Canal. Some 14,000 ships pass through the Panama Canal each year. The line-up is almost never-ending here at the Gatun locks on the Atlantic side. On October 12, 2011, phase three of the dry excavation project in the construction of the Pacific Access Channel (PAC) was completed. Photo: Grupo Unidos por el Canal With its 240.6 metre-length and 32.26-metre beam, the ship can barely fit the three sets of locks of the Panama Canal: Gatun, Pedro Miguel and Miraflores. Passing through the locks is a high precision manoeuvre. We could see the electric locomotives venture 1 2012 15 The pros of outsourcing F rom payroll to distribution, most companies outsource in some way. Indeed, in the automotive industry, outsourcing the complete management of the inbound supply chain is accepted practice. But on the outbound side, it is more the exception rather than the rule. Why is this? And what is the difference? How to increase outsourcing benefits was the topic of a recent public webinar, hosted by Wallenius Wilhelmsen Logistics (WWL) in conjunction with Finished Vehicle Logistics magazine. The focus was on how auto and equipment producers can mitigate outsourcing risks and create a more rewarding experience with their outsourcing. Doug Cooper, Vice President, Product and Business Development, SCM at WWL, explains: “We want to share our experience when it comes to the important business Doug Cooper decisions related to the outsourcing of supply chains.” The experience of outsourcing in the industry is good – around 90% of webinar attendees reported a positive experience. It can reduce costs by around 10 to 30 percent and better expertise through access to specialist skills. There are also benefits through greater reliability, increased control, faster market penetration and higher productivity. “Predictability and scale are the keys to supply chain management,” says Cooper. “If customers can monitor and manage performance with fewer points of contact through standardised processes and precision metrics, then we can improve efficiency and speed to market. We have seen lead-time reductions of up to 60 percent.” However, there are barriers to success and the benefits can be elusive. Disruptions in the supply chain can have a dev- 16 venture 1 2012 astating effect on corporate performance – “you can’t sell what you can’t deliver” – and companies need to focus on clarifying their logistics strategy, choosing the right partner and actively managing the relationship. Consistency is a key fac- webinar How to increase outsourcing benefits Learn how outsourcing can save money and increase efficiency Get tips on drivers for realisation of outsourcing benefits Find out how to mitigate outsourcing risk Receive our outsourcing risk check list tor and there are dangers inherent in cycling between www.2wglobal.com/www/ outsourcing and insourcing aboutus/webinars of the supply chain. These changes can be driven by strategic concerns - such as changes of leadership or market demand - or operation concerns, In considering the right provider, such as erosion of internal competence or you should think about the relationa lack of promised benefits. ship type, the profile of the provider and The first step in reducing the perceived the payment structure. A critical factor risk associated with outsourcing is to in achieving a quality result should be clarify your existing strategy and concontractual, ethical and environmental sider your future strategy. This should inrequirements. clude consideration of how many points of contact you want to manage and how Finally, the relationship needs to be much control you want to maintain over actively managed by both parties. WWL technology and core competences. suggests there should be structured multi-level contacts between the organisations in order to maintain a shared view of the contract and buy-in at all levels. Regular reviews on an annual or semi1: Clarify your strategy annual basis are essential while monthly ☞ What is your strategy today? ☞ How many points of contact? performance reports can inform key ☞ Want to own the technology? metrics and process improvement. ☞ Maintain your own competences? As a follow-up tool to the webinar, ☞ What will your future strategy be? WWL has produced a short briefing document and checklist for increasing 2: Choose the right provider the benefits from outbound supply chain ☞ Determine the relationship type outsourcing. ☞ Determine the provider profile “Auto and equipment makers who ☞ Determine the payment structure want to explore this topic further ☞ Communicate the environmental requirements should contact their account manager or our SCM team. We will be happy to 3: Actively manage the relationship arrange a workshop to explore how you ☞ Maintain multi-level contacts can increase the benefits of outsourcing ☞ Conduct annual or semi-annual reviews in the outbound supply chain,” ☞ Have monthly performance reports says Cooper. outsourcing tips R upert Saunders New partnership towards zero-emission future T he Orcelle Grants were created by Wallenius Wilhelmsen Logistics (WWL) to support the development of innovative, commercially viable solutions for a zero-emission future in maritime transport and logistics. As of this year, WWL is partnering with Savannah Ocean Exchange (SOE) to extend the reach of the programme, facilitating the leap of ideas and innovations across industries. We’re investing today in our long-term ambition to achieve zero emissions,” says WWL’s VP Environment, Melanie Moore. “Our environmental work is crucially directed towards minimising risk and cost. As the threats posed by climate change, pollution and fossil fuel depletion continue to grow, our industry will face increasingly strict legislative demands. We must speed up the pace of technology, in order to mitigate those risks – not only for ourselves but also for society and our customers. “We’ve partnered with the SOE, because it’s a dynamic new organisation with an exciting approach to advancing environmental innovation across multiple industries and disciplines.” Founded in 2010 , the SOE unites international organisations to distribute and adopt solutions that positively impact oceans and ocean life. Last year, its competition to identify the most promising sustainable maritime solution generated applications from across five continents. This year, the award will be divided into “we want to showcase the best economicand environmental solutions of today” three sub-categories – air, land and sea, the last of which is sponsored by WWL. “WWL shares the same vision and goals as the Savannah Ocean Exchange,” says Cort Atkinson, Co-Founder and CEO of the SOE. “We both seek to do more than identify solutions for our own use – we want to showcase the best economic and environmental solutions of today and accelerate their implementation. The innovations sourced through our partnership are not theoretical – they can be implemented immediately and, because they’re multi-disciplinary, we believe many of them can be used by WWL’s partners and customers in their own businesses too.” The theme for the 2012 Savannah Ocean Exchange is “Leap to ZERO+”. ZERO+ is the practice of creating gains (+), roads to prosperity and full productivity, while reducing (ZERO) the use of non-renewable natural resources, waste and the time required to transform waste and by-products into re-usable resources. “The Savannah Ocean Exchange’s ‘Leap for Zero+’ theme is a perfect fit with the global zero-emission ambition we have for our operations,” comments WWL’s President & CEO, Arild B. Iversen. “Together with the SOE, we can progress further and faster in promoting and developing environmentally and economically sustainable solutions for shipping.” The winners of the awards will be announced at the SOE’s annual Solutions Exchange, in Savannah, Georgia, this September. According to Melanie Moore, the event, which brings together global thought leaders from multiple disciplines including industry, education, research, technology, government and conservation, represents a unique forum in which to foster and inspire crossindustry innovation. “We view this as a unique opportunity to share ideas across industries, enabling us to speed up the pace of technology and thereby the ability to realise our zeroemission ambition,” she says. Isabelle Kliger Orcelle Grants Since 2008, WWL Orcelle Grants have been awarded to clean-tech entrepreneurs working on alternative energy sources and energy-efficient technologies for commercial ocean vessels and marine facilities. The winner of the Orcelle Grant receives USD 100,000, as well as technical support from WWL’s naval engineers and architects. For the 2012 Orcelle Grant, an international “call for solutions” will be issued in February, seeking proactive, innovative, scalable and economically productive solutions that accelerate the timeline of reaching ZERO+. venture 1 2012 17 fast facts Key issues 2012 2011 will go down in history as a challenging year, and, unfortunately, many of these challenges have been carried forward to 2012 – a year which will, hopefully, see some of them being finally resolved for once and for all. From the never-ending Eurozone crisis to the strategic importance of emerging markets to counteract sluggish growth in developed economies, Venture takes a look at some of the key issues which will continue to make front page news and affect global business during 2012. 5 Words Ari Marjama, WWL Market Intelligence hot topics 1 The Economy The world has been on a rollercoaster ride for the past few years, tumbling from a high-cycle to a recession and now slowly climbing back again to more normal levels. Some countries are climbing quicker than others, in particular the emerging markets such as Brazil or China, but also the US appears to be on an upward trend with higher than expected growth observed in the past few months. Still, the economy is guaranteed to be as much in the spotlight in 2012 as it was in 2011. The challenges are many and diverse, with the risk of major setbacks to global growth remaining substantial. Still, there are increasingly positive figures on the horizon and hopefully 2012 will mark a turnaround year, but still one to be watched closely. 18 venture 1 2012 2 The Euro-crisis These days, the direction the world takes is very much dependent on the situation in Europe. The Euro-crisis is in its third year, and the situation is still largely unresolved as 2012 begins. Slow (or even recession-level) growth, soaring sovereign debt defaults, austerity measures, bank recapitalisation and massive unemployment will mark 2012, as in 2011. The EU has started developing the path out of the trouble, with the increased focus on fiscal prudence and stimulating growth. Still, this is no walk in the park and small stones could easily become major tumbling blocks with dramatic consequences. The proposed solutions drawn up at the end of 2011 will not be a one-stop solution, but could help to kick-start Europe’s long journey out of the mire it is currently in. 2 1 3 4 “Continued growth and development in the emerging markets will support global economic growth” for 2012 3 The Emerging Markets Lately, the ever-returning panacea to all economic troubles has been “the emerging markets” or the BRIC countries (Brazil, Russia, India and China) which continue to show strong growth. True, there is strong inherent growth and billions of people who are working very hard to escape from poverty. Continued growth and development in the emerging markets will support global economic growth. Still, these markets are not insulated from the woes of the developed world and further increased difficulties in Europe, or elsewhere, will have an impact. So the real question is where the balance lies and if their internal growth is strong enough to resist external setbacks. 2012 might hold the answer. 4 The Elections 2012 is election year in over 30 countries around the world, including a few very important ones. Russia, France and the US are perhaps the most closely watched, but also the elections in the “Arab Spring” countries will be crucial in determining how the democratisation process continues in this volatile area of the world. The outcome of these elections will help to determine the political stance of some key global economies, with a possible impact on political, social and economic development. Countries like Syria, Libya and Egypt – and the current standoff with Iran – remain turbulent and developments in these countries may have an impact on global stability. 5 5 The Environment In the aftermath of the financial crisis, the environmental focus has unfortunately faded somewhat into the background. It still remains as crucial an issue as ever and 2012 will see some important developments in a number of environmental areas. With the resolution in Durban, the framework of the Kyoto agreement remains in place maintaining the focus on the pricing of carbon emissions in the world’s major industries. Another example is the shipping industry, which will experience the introduction of an increasing number of ECA zones. In particular, a low emissions zone in the US and Canada will come into play in August 2012 in addition to the ones that are already active in Europe’s Baltic and North seas. venture 1 2012 19 on site THE HEART OF THE ACTION About THE Port Barcelona is the second largest city in Spain. It is also Europe’s largest metropolis on the Mediterranean Sea. The Port of Barcelona is Spain’s leading port for international traffic with links to around 850 ports worldwide. It has 30 terminals handling all kinds of cargo, including containerized cargo and high-value goods like electronics and motor vehicles. In addition, around 2.4 million cruise passengers travel through Barcelona each year, making it Europe’s leading cruise port. LOCATION: Barcelona Launch pad for Europe and beyond In 1999 Wallenius Wilhelmsen Logistics (WWL) opened an office in Barcelona. Today, it has grown from a two-man show to a team of 31 people specializing in land-based transport across Europe, handling around 150,000 units by truck per year. This expertise, combined with the city’s important port and oceanic connections, means WWL Spain has the perfect constellation for a seamless journey to Europe and North Africa. Words Nina Yunkers photos Rodrigo Diazwichmann In-plant services Spanish automaker SEAT is an important customer. WWL provides in-plant services as well as inland distribution from the factory, to RedistributionCompounds in Germany. From left to right: Jesús Ramón Gerónimo Contreras, Operations and Distribution, SEAT, Manuel Medina Burrull, Head of Outbound Logistics, SEAT, Maria del Mar Jiménenez García, Inland Transport, SEAT, Valentina Drempetic, WWL, Carles Rius, WWL. 20 venture 1 2012 Inland distribution WWL transports roughly 150,000 units per year by truck throughout Europe. Their area covers the entire continent, and even includes North Africa, Russia and the Balkan countries. Personal attention The driver is a part of the Quality Management. The role of the driver is to be the direct and daily face to the customer. Safety loadings Supervising the truck loading of a new Audi Q3 ready for export by sea or road. Ocean and inland teamwork WWL Iberica, together with ocean agent Evge, makes a dynamic team in Barcelona. The WWL team in Barcelona is made up of 14 different nationalities, speaking an impressive 13 languages; this comes in useful when dealing with customers across Europe. WWL loads and discharges cargo at the port of Barcelona two to three times per month. venture 1 2012 21 On the ocean Armacup connecting Asia & Australia As trade between Asia and Oceania continues to grow, WWL has strengthened its partnership with New Zealand’s Armacup, to offer customers a smooth and seamless transportation circle from Asia to Oceania and back. Words Anders Lindgren Photo ISTOCK PHOTO N ot all parts of the world are experiencing an economic downturn. While high demand in China for raw materials is making the mining industry in Australia thrive, both the Australian and New Zealand markets are performing well and demand for new cars is high. This has created a kind of “transportation circle” of cars, buses, mining and construction equipment from China, South Korea and Japan to Australia, New Zealand and the South Pacific islands. The fastest growing segments are cars (especially those manufactured in China), utility vehicles, buses and high and heavy vehicles. As Australia’s mining industry continues to boom, so too are its agricultural and construction sectors. To cover this transportation circle and move the vehicles efficiently from the factory to the dealer, Wallenius Wilhelmsen Logistics (WWL) has partnered with New Zealand-based company Armacup. This allows WWL to offer customers express ocean transportation between Asia and Oceania as Armacup’s vessels call at strategic ports on short and regular intervals. Armacup initially started out as a freight forwarding company in 1984, focusing on transporting used cars from Japan to New Zealand. During the peak years, volumes reached 120,000 cars per annum. But later, this trade dropped to around 80,000 cars per year. Through its cooperation 22 venture 1 2012 with WWL, Armacup has expanded its business scope and initiated the transportation of new cars from China as well. “In China our vessels call at Shanghai and Tianjin where WWL has terminals that specialise in automotive, agricultural, construction and other rolling machinery,” says Mark Ching, Director of Armacup. Armacup has a service from China, Japan and South Korea to Australia, New Zealand, Noumea (capital of New Caledonia) and on to other South Pacific islands forming an important link in WWL’s distribution network in the region. It uses modern Pure Car Truck Carrier (PCTC) and Roll-on/Roll-off (RoRo) vessels offering a fast, reliable and safe service where the cargo is less likely to be exposed to damage due to less handling. Armacup’s port-to-port service integrates seamlessly with WWL’s terminals and service centres onshore, providing customs clearance, pre-delivery inspection, storage, re-forwarding and inland transport. In addition, using RoRo when loading and discharging static breakbulk units, like power generation equipment or jet engines, reduces the risk of them getting damaged. Armacup and WWL can also accommodate a range of high and heavy (H&H) cargo including wheel loaders, bulldozers, excavators and dump trucks. “We use a range of special equipment at our terminals to load and unload everything from 380-tonne turbines and rail cars to boats and yachts,” says Mike Slee, Head of Oceania Trade and Operations, WWL Australia. The relationship between the two companies goes back more than 20 years and, in June 2010, WWL increased its share in Armacup from 25 to 50 percent. However, even though WWL holds 50 percent of Armacup’s shares they are still two independent companies running their own businesses. “We act as Armacup’s agents in China and Australia. Through this partnership, we can offer our customers WWL’s factory-to-dealer solutions across WWL’s landbased services and supply chain management solutions linked with Armacup’s fast and safe ocean transportation service from North East Asia to Oceania,” says Christen Schreuder, WWL’s Head of Commercial in Asia. Armacup Established: 1984 Head office: Auckland, New Zealand Business: Ocean transportation of cars, trucks and other rolling equipment. Armacup commissioned the first dedicated car carrier vessel in the Japan/NZ trade in 1989. The company established its own office in Japan in 2000. New trade routes have been established, including South Korea, Ireland, England, Fiji, Australia and South America. Shanghai, China, one of Armacup’s ports of call on its Asia-Oceania routes. venture 1 2012 23 our industry Record year for Russian automotive industry Words Anna Gusarova, WWL Market Intelligence T he year 2011 was exceptionally good for the Russian automotive industry with sales rising to 2.653 million units, up 39 percent on 2010. This growth was largely driven by a robust increase in consumer and business confidence following the strong recovery in the Russian economy in 2011. Leading brands Lada, Chevrolet, HyundaiKia and Renault continued to be the best sellers. Due to the commissioning of new manufacturing facilities and increased utilisation of existing ones, 2011 was a record year for the production of light vehicles with output reaching 1.7 million vehicles, up 45 percent compared to 2010. 24 venture 1 2012 The competition is heating up as most OEMs (original equipment manufacturers) count on the huge growth potential of the Russian market as it continues to recover from the 2009 downturn. Several foreign automakers like Fiat and Mazda are planning investments in local assembly, while some OEMs are forming joint ventures with Russian producers. In addition, Chinese automakers, with their pricecompetitive products, are becoming increasingly successful in Russia. Russia and Ukraine now rank as two of the most strategically important export markets for Chinese OEMs. Confronted with the aggressive strategies of foreign OEMs, Russian market leader AvtoVaz lost market share in 2011. Although Lada brand sales showed an 11 percent growth in 2011, the brand could not cope with total market growth. AvtoVaz’s partner Renault is planning a full takeover in 2012, creating expectations of a technological strengthening of the company. The French OEM is set to have a big influence on the Russian market in coming years and its own-brand sales are also expected to rise. Russia’s entrance into the WTO agreement in December 2011 will reduce import duties from 30 percent to 25 percent in 2012 followed by a stepwise reduction to 15 percent by 2020. Although “The country’s relatively low car density offers good sales opportunities going forward ” this is unlikely to affect prices and demand in 2012, imported cars will benefit from the agreement in the long run. Despite 2011 being a strong year, the activity level in 2012 is expected to be somewhat lower due to a decline in the forecasted GDP growth rate. However, overall growth in Russia’s auto industry will continue as several foreign OEMs launch new models and expand production capacity. The country’s relatively low car density offers good sales opportunities going forward. This should particularly benefit AvtoVaz and locally produced brands as the lowest share of car ownership is currently in the economically weakest regions of Russia. Sales development in Russia 2006 – 2015 (In thousands) 2.6 2.9 2.7 1.9 2.8 2.9 3.0 3.5 Import 1.9 1.5 2006 2007 2008 2009 Domestic 2010 2011 2012 2013 2014 2015 inspiration WWL Global Customer Satisfaction KPI 2011 The results are calculated based on monthly Customer Survey responses. Results are a compilation of all responses throughout the year. Results per region in percent: America 82.2 93.6 90.1 88.9 86.4 Asia Photo: Boris Osetinskiy The aircraft was restored using parts from four wrecks discovered in northwestern regions of the former Soviet Union. New home in US for unique Russian aircraft W WL has shipped a unique specimen of the “Shturmovik” fighter plane from Russia to USA. This aircraft is the only example of its kind that remains in flying condition, proven by the fact that it actually flew to a small airport outside St. Petersburg, where it was dismantled and prepared for sea transport. The total weight of the shipment containing the Shturmovik – which was produced in epic numbers in the Soviet Union during World War II and flew in combat on the Eastern Front against Nazi Germany – was 5,000 kilogrammes. The cargo was lashed on a cradle and shipped on a special mafi trailer. Meanwhile, the wings had to be dismantled, bundled and transported on separate trailers. The plane left St. Petersburg in midDecember 2011 on a ship bound for Bremerhaven, Germany, where it was transshipped onto a vessel crossing the Atlantic. After arrival in Tacoma, USA, the Shturmovik will be added to the Flying Heritage Collection in Seattle– a private collection belonging to philanthropist Paul G. Allen. Europe Oceania global Target all regions 26 venture 1 2012 95% Read Venture also online Speeding up dialogue with customers Wallenius Wilhelmsen Logistics (WWL) has introduced a new method for measuring customer satisfaction. Moving from personal interviews to an online survey, the company hopes to obtain more detailed, faster feedback from its customers. The results, which are continuously followed up and converted into improvement measures, will serve to enhance customer satisfaction across WWL’s range of products and services. “Knowing your customers is crucial to delivering the right products and services,” says Joost Somers, WWL’s Global Head of Customer Care. “This is why customer feedback is so important – it enables us to stay on top of what the market needs and develop services that consistently exceed its expectations.” As of August 2011, WWL has been contacting all the customers with whom it has done business, via email, inviting them to provide feedback through an online survey. The short survey, which consists of ten questions, is aimed at rating WWL’s service levels across a series of carefully selected criteria. “In addition to an overall response rate of 12 percent, 40 percent of respondents have entered additional information,” Somers continues. “We’re delighted that so many customers have taken the opportunity to provide such detailed, constructive feedback. It gives us a clear indication of our strengths, as well as the areas in which there is room for improvement.” For an organisation such as WWL, the ability to ensure that information of this kind is correctly analysed from a global perspective, in order to secure the necessary corrective measures, is crucial. Going forward, WWL will continue to conduct surveys on an ongoing basis, thereby ensuring that all its customers are given the opportunity to voice their opinions. Meanwhile, continuous improvement efforts will focus on the areas highlighted by the survey. “We take the survey results very seriously and would like to encourage our customers to take a few minutes to respond to it. They can also continue sharing their feedback, using either the Customer Feedback Form on the www.2wglobal.com under “Contact us” or through their WWL Commercial contact,” concludes Somers. Three key breakbulk events in 2012 Wallenius Wilhelmsen Logistics (WWL) is participating in three major breakbulk events this year: Breakbulk China, which took place in February, will be followed by Breakbulk Europe in May and, finally, Breakbulk Americas in October. Breakbulk China took place from 28 February to 1 March in Shanghai, China. The confer- ence, which was themed “China leads the way”, looked more closely at China’s strong position in the export and import of breakbulk and project cargo and how this can be expected to develop going forward. WWL representatives were on hand to discuss WWL’s role in this. Next up, WWL will be participating in the Breakbulk Europe event, taking place at the Antwerp Expo in Antwerp, Belgium, on 22-24 May. Here, an in-depth programme will delve into the most pressing breakbulk transportation topics of today. WWL’s exhibit at Breakbulk Europe will be located at stand 702 in Hall 4. Finally, WWL will also be present at Breakbulk Americas in Houston, Texas, on 8-11 October. A brandnew logistics website for inspiration and innovation Get the latest news, videos and photos from WWL’s global logistics network One click access whenever you need it Share your opinions and comments Scan this QR code to visit Venture online venture.2wglobal.com We look forward to seeing both new and existing customers at our stand. venture 3 2011 27 ECONOMY If undeliverable, please return to: Exchange Office SPI STO 8010 Zurich-Mulligen Switzerland a a seamless seamless journey journey Travelling Travellingwith withWWL WWLsimplifies simplifiesthe thefactory factoryto todealer dealer journey. journey.From From oceansimplifies to toinland, inland,we wetailor tailorour our Travelling withocean WWL the factory to dealer services servicesFrom to tofind find the the most most efficient efficient path for your your journey. ocean toWWL inland, we path tailor our Travelling with simplifies thefor factory to dealer vehicles. vehicles.to So So leave leave the the details details tous us and and know know that that services find the most efficient path your journey. 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