Venture 4, 2015 - Wallenius Wilhelmsen Logistics
Transcription
Venture 4, 2015 - Wallenius Wilhelmsen Logistics
THE WORLD IN 2016: FIVE PREDICTIONS FOR THE YEAR AHEAD YOUR INDUSTRY: ADJUSTING TO THE RISE OF ALTERNATIVE FUEL VEHICLES OIL RIG CLEANUP: DISMANTLED OIL RIG GETS AN EXPRESS OVERHAUL ON SITE: THAILAND WALLENIUS WILHELMSEN LOGISTICS MAGAZINE FOR CUSTOMERS ISSUE 4/2015 Complete logistics offering in Thailand e r u t u F The E R E IS H Europe. car arrives in d re e w o -p n e hydrog Toyota’s first VENTURE 04.2015 CONTACT VENTURE NO 4 DECEMBER 2015 Published by Wallenius Wilhelmsen Logistics AS, Box 33, N-1324 Lysaker, Norway. Editor Cathrine W. Horn. Editorial production Spoon, Stockholm. Environmental care This magazine is produced in accordance with the Nordic eco-labelling system, the Swan. Front cover Toyota’s Mirai. Photo: Toyota. Next issue March 2016. Copyright Texts and images in Venture may not be republished without permission from the editor or publisher responsible. Printer Trydells, Sweden. WALLENIUS WILHELMSEN LOGISTICS HEADQUARTER +47 67 82 57 00 Find your local customer care office here: www.2wglobal.com/support/customerservice-contacts/ If you have any comments related to Venture or questions about subscriptions, please email: [email protected] CONTENT EDITORIAL The state of the trade 10 LOOKING BACK, it is clear that the days of linear and predictable RoRo markets are gone. When WWL was first established back in the 1990s, five countries manufactured 80 percent of the world’s cars, with Japan on top. By 2020, there will be 10 countries contributing the same 80 percent of automobile manufacturing. Our “new normal” is changing trade patterns with increased complexity. The dynamics we now face, with fragmented production, distribution and sales, are driving many developments, both big and small. One of the bigger ones is definitely the Trans-Pacific Partnership agreement. Positive effects of this deal in the next 12 months would be welcome for a global trade growth rate in decline. 8 THE PERFECT HANDOVER: Toyota’s zero-emission car 10 Powered by wind Zeebrugge and Baltimore go for wind power. The Mirai has arrived in Europe. The car is built on Toyota’s advanced hydrogen fuel cell technology and emits no carbon dioxide. 4 Network update 17 Working smarter 6 In the Cargo: Express Overhaul 18 Fast Facts: Market outlook 2016 What’s new and noteworthy in the world of WWL. Oil rig gets an overhaul before resale at Singapore EPC. 12 Interview: Mike Jackson from IHS Automotive shares his thoughts on the growing luxury vehicle market. 14 Customer Survey Customers have spoken, and WWL shares its plans for 2016. 16 A successful nose job Four RoRo vessels have been equipped with a new bulb to operate better at sea. WWL at Port Kembla in Australia streamlines its processing business to stay competitive. MANY OF YOU TOOK THE TIME to answer our strategic Five things to look out for in the year ahead. c ustomer survey earlier this fall. Your feedback provides invaluable learning for us to innovate and improve on our processes, systems and products. I would like to thank you for your continued support in 2015. We look forward to w orking together in the new year! 22 On the Ocean: What’s in a vessel’s name? The story about how the WWL vessel names came to be. 24 Your Industry: AFVs New transport regulations are being introduced to support the rise of alternative fuel vehicles. 26 Inspiration Californian clean-tech company receives the 2015 Orcelle Award. INNOVATION HAS BEEN one of our core values from the very beginning, so I believe we are in a good position to handle this new reality. We tend to see innovation as something reserved for the Silicon Valley types. Yet when we direct our energy at incremental improvements in what we do on a daily basis, we all have innovation opportunities “on the job”. A good starting point is curiosity. Going into next year, I am encouraging our people around the world to challenge assumptions and ask the question: What can we do differently in 2016 to deliver even better products and services to our customers? It’s essential for our future success that our innovation values and improvement culture remain a part of our DNA. 20 ON SITE: Thailand Meeting the growing need for well-planned and efficient outbound logistics in Thailand. CHRIS CONNOR PRESIDENT & CEO, WALLENIUS WILHELMSEN LOGISTICS VENTURE 4 2015 3 NETWORK UPDATE WWL is constructing a brand new stateof-the-art processing facility and storage yard on the Galveston port terminal due to open in 2016. an Expert BREAKBULK WORKSHOPS GIVE INSIGHT INTO RORO MORE THAN 50 LOGISTICS professionals, A decade of service T his year Wallenius Wilhelmsen Vehicle Services Americas (WWL VSA), one of the leading automotive processing and logistics providers in North America, marked its 10th anniversary as part of the WWL family. It all started in 2005 when WWL acquired Distribution and Auto Service Inc (DAS) – later renamed WWL VSA – from Nissan North America in order to expand its offerings to better serve the North American finished vehicle industry. At the time, WWL CEO Christopher J. Connor said of the acquisition, “The scale and scope of the existing network will provide an excellent opportunity for WWL to develop efficient distribution solutions for other automobile manufacturers in the competitive North American market.” During the past 10 years, WWL VSA has done just that. The company has grown from 5 to 25 facilities in North America, and with 3,400 employees and more than 4.7 million vehicles handled an- Tianjin – The aftermath Clean-up efforts continue in Tianjin, China, after explosions rocked the port city earlier this year. a series of explosions shook the Port of Tianjin in China. The explosions, which started at a container storage facility, caused numerous casualties and inflicted structural damage to sur- nually, growth for WWL VSA continues to this day. Stateof-the-art in-plant and port-based vehicle processing centres, such as Brunswick in Georgia and Annacis in Vancouver, British Colombia, provide key services for European and Asian imports, respectively. In addition, new projects such as the BMW facility in the port of Galveston, Texas, and the Subaru plant expansion in Lafayette, Indiana, offer more extensive service capabilities for customers going forward. is grounded in the 3,400 dedicated men and women who work tirelessly every day to deliver a variety of highly specialised first-class services to our many automotive customers,” says John J. Felitto, president and CEO of WWL VSA. “We are proud of our growing logistics portfolio and will continue to work diligently to service our customers with innovative and highperforming logistics.” “THE SUCCESS OF WWL VSA rounding buildings and property, severely affecting the local community and businesses. Authorities focused their efforts on determining the cause and extinguishing the resulting blaze that burned throughout the weekend causing an additional eight explosions by 15 August. ON 12 AUGUST 2015, 4 VENTURE 4 2015 and its customers, particularly automotive OEMs, suffered serious damages to facilities and products, as the explosions destroyed thousands BOTH WWL of vehicles. Repair and rebuilding efforts continue to this day, limiting operations in the area despite a return to business. Nevertheless, because Tianjin and nearby Beijing remain major logistics hubs, the long-term impact of the incident on the region will be mitigated once operations resume. The WWL team in China and the local team in Tianjin particularly remain in constant dialogue with customers to provide solutions and support for future business in the city. Ask NEWS IN BRIEF mainly forwarders, learned about the benefits of RoRo solutions at two workshops held in Spain this fall. The main goal of the workshops was to educate WWL customers about the benefits of using RoRo vessels when transporting large or breakbulk cargo. The workshops included presentations and discussions about various types of RoRo vessels, the global RoRo fleet and the different kinds of RoRo cargo. They also covered the differences between RoRo, container and lift on, lift off (LoLo), and included discussions of the benefits and weaknesses of each. Also attending were representatives from the Port Authorities and several partner companies including Autoterminal, a multimodal terminal for handling of vehicles at the Port of Barcelona; Embalajes Cantabria, WWL RECEIVES LLOYD’S LIST AWARD LLOYD’S LIST AUSTRALIA has honoured WWL with its Maritime Services Award. The accolade was presented at the news publication’s annual Shipping & Maritime Industry Awards dinner held recently in Sydney. WWL received the award for its response to the brown marmorated stink bug, an agricultural pest that can cause widespread damage to fruit and vegetable crops. WWL collaborated with the Department of Agriculture in identifying and containing the pest and working on solutions to mitigate risks of infestation in Australia. The efforts have helped to establish a strong platform to minimise risk within the supply chain for the current season. DOUBLING OF FREQUENCY TO US WEST COAST the frequency and capacity of its transatlantic service bound for the West Coast of the United States. Starting in January 2016 it will offer a weekly service from key ports in Europe to Southern California. Previously, WWL offered a fortnightly service from Europe to the West Coast. These two additional sailings per month strengthen the company’s market-leading connectivity between Europe and Baltimore, and boost transshipment opportunities to Latin America, the Caribbean and Asia via its port hub in Manzanillo, Panama. WWL WILL INCREASE which specialises in cargo packing and securing; Gestenor, which focuses on cargo handling with cranes; and Bergé Marítima, a multimodal terminal for vehicles at the Port of Santander. Eukeni Salutregi, Head of Breakbulk and Cargo Equipment for WWL in Spain, says the workshops were a hit with the participants. “It was evident from the discussions we had that WWL holds a very strong position in this area,” he says. THE GENERAL FEELING from the workshops was echoed in the satisfaction survey completed by the participants. One attendee congratulated WWL for hosting a good event, saying, “Once again, WWL is at the cutting edge and much ahead of competitors.” WWL will continue to offer these types of workshops in both Barcelona and Santander in the coming year, and it is looking into expanding the event to other parts of Spain. WWL also received the Highly Commended Certificate in the Project Award category for providing a transport solution for Caterpillar’s mining machine, the longwall shearer. The company used its fleet of Samson heavy-lift trailers and its global network to provide safe and efficient handling and delivery of the machine. Richard Bailey, head of commercial at WWL Oceania, says the recognitions show how much customers value the WWL brand. “Both awards are reflective of our global efforts in managing logistics solutions and being able to respond to industry challenges,” he says. which took place on November 19, gathered 400 industry representatives from the logistics and maritime sectors. Among them was Australian Deputy Prime Minister Warren Truss. THE EVENT, Flavio Batista, head of commercial for EMEA at WWL, says the weekly service meets a growing need in the market for more RoRo shipments. “The service allows us to lead the market by offering unmatched frequency and reliability to effectively accommodate the growing needs of heavy equipment and breakbulk shippers as well as car manufacturers,” he says. Port calls for the full route include: Europe: Bremerhaven / Zeebrugge / Southampton US (East Coast): Baltimore Panama: Manzanillo US (West Coast): Port Hueneme Mike Hynekamp, the new Chief Operating Officer for Ocean, knows a thing or two about running a successful operation. Before joining WWL in 2007, he held various leadership positions at Mercedes-Benz in the US and Daimler in the UK. His biggest challenge in his new role is getting his teams to constantly re-invent themselves in order to be prepared for the new services and innovations that a fastchanging market brings. What’s the biggest challenge to your and your customers’ business today? The speed at which businesses are changing has grown exponentially and we’re seeing greater levels of disruption, whether that’s in our industry or the car industry or the equipment industry. New entries are coming in and disrupting the market, both from a technological and a business-model standpoint. For any industry, it’s important to think about how to disrupt everything you do in order to stay competitive and avoid ending up like former giants such as Nokia and Kodak that lost their stronghold in their markets a long time ago. What’s WWL doing to prepare for this new disruptive market? We’re having more conversations about the volatility and complexity of our markets at the leadership level, and I think this has given us the focus we need to be on top of the issue of disruption at all times. Can you give a concrete example of what you’re doing? One thing we’re doing now more than ever is turning towards big data in order to optimise the sailing of every vessel as well as optimise the entire network of how we sail our fleet. For example, we are looking from a data-driven perspective at everything operationally relating to a vessel’s configuration, performance, speed and consumption to position vessels in support of our customers’ needs now and in the future. What other factors are needed to be in place in order to succeed today? At the end of the day, what is going to be the really big differentiator is the people who make up your business. You can get caught up in complicated ways of recruiting talent, and that’s critical, but what’s more important is that you hire in line with your cultural values. There’s a famous expression in the US that says, “culture eats strategy for lunch.” That means you can have the greatest strategy in place, but if your culture is awful and you don’t have the right people you’re already doomed. You’re never going to make it. VENTURE 4 2015 5 IN THE CARGO Behind the scenes of a cargo movement Handling huge equipment for the oil and gas industry is a challenge in itself, but add in tight deadlines and the task can seem almost impossible. Solving this puzzle requires the right combination of efficient supply chain management and expert service. WORDS TORUNN HANSEN-TANGEN PHOTO WWL EXPRESS I overhaul n Singapore, the offshore and marine sector has been going through tough times due to falling oil prices and slowing production demand. WWL’s Equipment Processing Centre (EPC) in Singapore was recently approached by an offshore company to assist with a dismantled oil rig. The job involved washing and storing 96 pipe risers and 769 drill pipes, weighing up to 24 tonnes each and measuring up to 22 metres in length. The equipment needed to be prepared for a buyer in Australia, and the deadline was tight. 6 VENTURE 4 2015 The WWL team used high-power pressure jets with rotating nozzles to remove mud, barnacles and grease from the pipes. Accredited quarantine officers were flown in from Australia to check on the job before the pipes were shipped to their destination. The team completed the job in just three weeks, working up to 12 hours a day, including weekends. “With the experience of washing rolling equipment units in our team, we were able to take on the challenge of washing this oil and gas cargo to meet Australian standards,” says Andy Sahri, a service engineer at WWL Singapore EPC. ● ABOUT THE PROJECT WWL Singapore was asked to wash and store a dismantled oil rig prior to a resale in Australia. The washing had to meet the standards set by the Australian Quarantine and Inspection Service (AQIS) and be accredited by its officers in order to be redeployed in Australia. The work of storing and washing 96 risers and 769 drill pipes took three weeks. The drill pipes were packaged and all wood was fumigated to meet AQIS standards. ABOUT WWL’S EPC IN SINGAPORE The WWL facility in Singapore offers its customers more than 18,200 square metres of storage capacity with a maximum weight of four tonnes per square metre. The facility provides round-the-clock security and has a wash bay with recycling functions, five work bays for engineering services and a paint booth big enough to accommodate equipment. The services include inspection and processing, storage and transportation management and modifications or rectifications to meet customers’ requirements as well as lifting of cargo, full unit painting and documentation. THE PERFECT HANDOVER Improving value in your logistics chain Toyota’s zero-emission car . ARRIVES IN EUROPE The Mirai is equipped with two hydrogen fuel tanks. The hydrogen is pumped into a fuel cell stack, where it reacts to air and produces electricity, with the only by-product being water. The first shipment of Toyota Motor Corporation’s new environment-friendly car Mirai has arrived in Europe. The car is built on the company’s advanced hydrogen fuel cell technology and emits no carbon dioxide. M WORDS TORUNN HANSEN-TANGEN PHOTOS TOYOTA irai, which means “future” in Japanese, is designed to be as convenient to drive as a petrol-powered car. It takes three to five minutes to be refuelled and has a driving range similar to conventional cars. Above all, it only emits the water vapour produced by the reaction between hydrogen and oxygen. The four-door Mirai is currently being offered in the UK, Germany and Denmark, where infrastructure for fuel cell cars is being developed. The attractiveness of the saloon car has already been felt in the UK, where the cars were quick to be picked up by business and corporate custom- ers after arriving in Bristol earlier this fall. Karl Schlicht, executive vice president of Toyota Motor Europe, says the introduction of the world’s first mass-produced fuel cell car marks the debut of a new age for clean mobility. “With Mirai and its fuel cell technology, Toyota is working on delivering clean, safe and enjoyable mobility for the next 100 years,” he says. TOYOTA USED THE EXPERIENCE and technical know-how from its hybrid car, the Prius, to develop the fuel cell system, and it hopes the introduction of the Mirai will lead to greater understanding and acceptance of this new technology globally. ● ABOUT HYDROGEN FUEL Hydrogen is produced by breaking down water into its two primary elements: hydrogen (H2) and oxygen (O2), and the separation process is called electrolysis. The hydrogen fuel cell technology is a tried and tested technology that’s powered its way through history. Since 1939, it’s been used in generators, forklifts, submarines and spacecrafts. VENTURE 4 2015 9 By 2020, WWL aims to have at least one of its terminals emissions-free. The company calls it the Castor Green Terminal Vision, and two sites are now closer to reaching that goal, thanks to the installation of windmills. WORDS TORUNN HANSEN-TANGEN PHOTOS WWL AT BELGIUM’S Zeebrugge terminal, the skyline has seen a change lately. Two windmills were recently erected and now tower over buildings and cargo below. They belong to WWL, and apart from showing the company’s strong commitment to reducing its CO2 footprint, they’re signalling a new green dawn at the port. “More and more customers want every part of their logistics chain to be green,” says Filip Declercq, technical purchasing and maintenance manager at WWL in Zeebrugge. “You can no longer sell products that are not sustainable. It’s an attitude that’s growing, and everyone is getting more environmentally aware.” THE INSTALLATION OF THE WINDMILLS is a result of this new attitude. WWL wanted to erect them seven years ago, but only recently did the company get everyone, including the port itself, on board. “It’s difficult to install a windmill because you need a lot of permits, but if several parties want the same thing, the process becomes a lot easier,” Declercq says. “Our terminal neighbour Toyota, for example, is also installing windmills. It’s a green wind that’s blowing through the Zeebrugge port. We all want to be more sustainable, and once the ball starts rolling it cannot be stopped.” The windmills, produced by Danish company Vestas and installed by Dutch Eneco, will produce 15,000 megawatt-hours per year, which is enough renewable energy to power all of WWL’s facilities at the terminal as well as 6,000 homes nearby. “Our kilowatt usage at the terminal is very little compared to what the windmills can produce, which means electricity is injected into the grid.” Declercq says. The installation of the windmills is the latest of many sustainability initiatives that WWL has carried out at Zeebrugge. The company has installed LED lamps on some parts of the terminal and in its High & Heavy workshop, and is looking to install an EcoNation LightCatcher, which will project sunlight into the building from a mirror on the roof. “The Castor Green vision is ambitious, but not impossible,” Declercq says. On the other side of the Atlantic, in Baltimore, Maryland, WWL is also taking major strides in reducing its CO2 footprint by retrofitting all ships’ lighting with LED lights and replacing half of its fleet with electric vehicles, such as yard vehicles and forklifts. “We have set up solar panel charging stations to charge all the electric vehicles, which means we’re actually taking renewable energy to charge our vehicles,” explains Michael Rye, head of North Atlantic Port Operations at WWL in Baltimore. “These are just some of the steps we’re taking to cut down on our overall emissions and carbon footprint.” Blades: 9 0m. winds POWERED BY ABOUT THE WINDMILLS IN ZEEBRUGGE: Two windmills produced by Vestas and installed by Eneco Windmill foundation stands on 28 pillars Works on 36 kV CO2 emission reduction: 6,840 T/year CO2 for building and erection of windmills will be offset after one year Collaboration between WWL, MBZ, Eneco and Portfineco The windmills have an ice-detection system Mast height : 105m Maximum total height : 150m THE WINDMILL IN BALTIMORE: One windmill produced by XZeres Wind Mast height: 43 m. Weight 1,045 kg Blades: Three with rotor diameter of 7.2m and swept area of 42 square meters. Windmill foundation will be a 170 cm-deep reinforced concrete pad Design life: 20 years Yearly production: 12,000 kWh (Monthly: 1,000 kWh) CO2 emission reduction: 7.8 T/year Power from the windmill will power WWL’s Mid-Atlantic Terminal fumigation centre. Leftover electricity will be fed back to the grid. Yearly production: 15,000 MWh = WWL’s needs plus those of 6,000 families WWL IN BALTIMORE is also getting ready to set up its first windmill. The generated electricity will power the fumigation facility, and Rye sees this latest initiative not only as a good investment from an economic point of view but also as an opportunity to strengthen WWL’s brand as the leading green supplier. “In Baltimore we’re the leading facility when it comes to environmental initiatives,” he says. “No one at the port has come close to what we have put in place. The Port Authority has recognised WWL for best practices. It’s one more feather in our cap, and hopefully it puts us at the forefront of our customers’ minds when they choose which logistics provider to go for.” ● VENTURE 4 2015 11 The global appetite for luxury vehicles is rising as manufacturers of premium brands diversify their product ranges, according to a major new industry analysis. T THE RISE OF luxury vehicles WORDS DANIEL DASEY PHOTO DWIGHT CENDROWSKI he next few years hold major promise for global manufacturers of premium passenger cars and crossovers, according to expert analyst Mike Jackson, director of North American Vehicle Forecasts at market researcher IHS. Jackson recently produced a comprehensive analysis of automotive trends over the coming years titled Navigating for Growth: Global Automotive Opportunities and Pitfalls. He found that the current healthy global trend for light vehicles was likely to continue, with sales expected to grow from 88 million in 2015 to 107 million in 2022 – a rise of 22 percent. However, global demand for premium brands, such as Mercedes-Benz and BMW from Europe, Lincoln and Cadillac from North America, and Lexus, Acura and Infiniti from Japan, was expected to grow even faster, rising 28 percent from 8.9 million in 2015 to 11.4 million in 2022. Jackson says much of the growth in the luxury category will stem from vehicle manufacturers working to capitalize on the strength of their brands by offering a more diverse range of products. “Many luxury manufacturers are interested in growing their success and tapping into new vehicle segments with what we refer to as ‘white space’ entries,” he says. For many premium manufacturers this white space means offering a broader portfolio of vehicles. In entry-level product categories, this strategy helps them to connect with targeted buyers earlier in life and build brand loyalty. CROSSOVER VEHICLES, built on a assenger car chassis but offering sport p utility features, are a popular way of achieving this, particularly as buyers often seek the prestige and refinement associated with luxury yet with a broader range of vehicle dimensions. Jackson cites the example of BMW, which recently announced plans for a new X7 SUV model that will serve as its flagship luxury utility entry. He also points “MANY LUXURY MANUFACTURERS ARE INTERESTED IN GROWING THEIR SUCCESS AND TAPPING INTO NEW VEHICLE SEGMENTS WITH WHAT WE REFER TO AS ‘WHITE SPACE’ ” to Mercedes-Benz, which is looking to expand its portfolio down-market and recently entered into a platform-sharing agreement with Renault-Nissan, in which unique Mercedes vehicles and Infiniti models will be produced at the same facility in Mexico. Another key driver of the strong growth in the premium segment is the demographic change taking place in China. Even though the pace of growth in the Chinese market is slowing, the country is still producing more and more wealthy individuals who are interested in, and capable of, purchasing luxury vehicles. 100 60 AFTER A WHILE, these innovations tend to cascade down into more affordable vehicles, increasing overall quality. One example is the common use of carbon fibre in vehicles, once a hallmark of luxury products. Carbon fibre can be used in all kinds of vehicle components, including body panels. Its advantages are that it’s incredibly light and remarkably strong. “Manufacturers like Lexus or Infiniti often bring applications or materials into their premium offering and then later in the life cycle introduce them in their more mainstream offerings,” Jackson says. “In the end, it’s a win for drivers of luxury vehicles and regular vehicles alike.” ● 3.6 % annual growth rate 120 80 “The emergence of China has been nothing short of extraordinary,” Jackson says. “And this is a market that in 2000 was in its infancy. So while we have already experienced tremendous growth, we still expect a tremendous amount of additional growth to occur.” While China stands out from the crowd, other key markets such as North America and Western Europe have also bounced back from the global economic crisis with a healthy appetite for luxury vehicles. Jackson says the overall strength of the luxury market is good news for vehicle consumers on all levels. The high premium on such vehicles and demand from consumers for innovation generally means that manufacturers have the funds and the motivation to invest heavily in product development. 2.9 % annual growth rate 10 Global output for premium brands 8 6 Global light vehicle production 40 12 4 20 TOP 5 LUXURY BRANDS Mercedes-Benz BMW Audi Lexus Volvo 2 million million 2015 2022 2015 2022 SOURCE: NAVIGATING FOR GROWTH: GLOBAL A UTOMOTIVE O PPORTUNITIES AND PITFALLS (IHS AUTOMOTIVE) . VENTURE 4 2015 13 e c n a m r o f r e p eas y Ke ar R RS OU ME R O FOUST C Discover and tryout all WWL tools at 2wglobal.com 1. AMPLIFIED TOOLBOX Online schedules and our track-and-trace app are some of the most popular visibility tools among customers. In 2016 we will: Run a project to further improve cargo visibility and release a new version of the track-and-trace tool Enhance the app for rate requests Upgrade our apps for shipping instructions, booking requests and web notifications on arrival Introduce a new customer portal that includes: · Improved web-based KPI reporting · Amplified analysis capabilities 14 VENTURE 4 2015 · Enhanced webbased incident and claims management MORE SERVICE Our goal in 2016 is to deliver a better digital experience with more personalised data made available for our customers. Improved customer portal · Possibility to customise information, increased visibility and better analytics Online customer service · Customer service made easier and delivered faster · Online booking requests and access to other useful applications Linked service and support Develop a digital service desk that will: · Enable our customer care representatives to provide proactive guidance from quote to invoice · Connect customer care teams globally across locations, account teams and services Thank you! A BIG THANK YOU goes to all of you who took the time to answer our annual customer survey. This provides us with valuable insights, helping us understand how we can improve our products and services for the future. WE’RE PLEASED TO LEARN that the global WWL team was given high scores on service reliability, communication and customer service. However, there is always room for improvement and we continuously strive to do better. As you will learn on these pages, we have several initiatives in the pipeline for 2016 that we hope will make your customer experience even better. OPTIMISED CAPACITY 3. To deliver capacity in line with forecasted fluctuations in demand, we: Work with our partners ARC and EUKOR to meet our customers’ needs Adjust schedules and vessels deployed based on long-term forecasts WORKING SMARTER In 2015 we expanded our Way of Working (WoW) programme from 14 to 44 sites The WWL team Xxxxxx xxxxxxxx 4. On-time delivery, service and support, and price levels are what matter most when our customers choose logistics partners. In 2016 another 10 sites will sign up to WoW, taking the total to 54 sites The LEAN-based program is already showing positive results in the areas of safety, environment, quality and delivery QUICK FACTS: The questionnaire was sent to more than 3,000 customers in October, and 410 responded in total. 2. IMPROVING ON-TIME DELIVERY In 2016 we will continue to invest in our weather- routing software to monitor sea passages, making sure we make the best decisions to ensure on-time arrival and damagefree transport We collaborate closely with ports and terminals to keep congestion and delays to a minimum Number of respondents by region ILLUSTRATION DAVID KARLSTRÖM 5 5. CUSTOMER SURVEY 2015 WORKING SMARTER Companies everywhere are streamlining their businesses to stay competitive in an increasingly demanding market. But what does this mean, and does it make a difference to the customers they serve? Venture visited Port Kembla in Australia to find out. WORDS ALANNAH EAMES A BIG, BOLD nosejob Four of WWL’s RoRo vessels have been equipped with a new bulb in order to operate better at sea and keep emissions low. T he new 130-tonne bulbous bow, which is the protruding part of the ship just below the waterline, is much slimmer than its predecessor – the bulbous bulb – and makes the vessel less resistant to the movements of the water and thereby more efficient at sea. Geir Fagerheim, Vice President of Fleet Management at WWL, says the new bulb is also a lot more flexible than the previous model. “The old bulb was optimized for one specific draft,” he says. “The draft itself and the cargo onboard are constantly changing, which means it’s important to have a bulb that works well across a wide range of drafts.” The project was initiated when operations data from the company’s performance-monitoring and analysis tool showed that the Mark IV vessels were operating on a lighter draft and 16 VENTURE 4 2015 lower speed than what they were meant for. Designed in the late 1990s, the vessels were originally constructed to carry heavy cargo such as timber products and paper pulp, cargo that is less frequent today. The new bulb is better tuned to the current cargo mix and operating speeds. DAEWOO SHIPBUILDING & Marine Engineer- ing, which designed the bulb, developed 30 different design variants before reaching a conclusion together with Wilh. Wilhelmsen’s project management team. The selected bulb was thoroughly model-tested to verify the performance. The refitting was carried out by the IMC-Yongye repair yard in Zhoushan, China, within the time frame of the regular dry-docking schedule. The yard constructed a custom-made railway carriage to ensure safe movement and precise adjustment to the existing hull of the vessel. The new bulb has shown promising performance results so far. “When comparing the vessels before and after the conversion, we clearly see an improvement in operational efficiency,” Fagerheim says. “The modification has been very successful in adapting to the current service profile of the vessels.” Fagerheim says WWL is constantly working to improve the performance of its vessels, with both the customers and the environment in mind. “We have quite ambitious CO2-emission targets,” he says. “We’re preparing for a future with less carbon footprint, and this initiative is one step out of many that we’re taking to move us in the right direction.” ● P ort Kembla is the main port for Sydney, Australia’s biggest city, and one of the most important vehicle-importing hubs in the country. WWL opened its equipment processing facility at Port Kembla in 2007, and it has been expanding ever since. Today, WWL employs 28 people at the site, and key customers include Daimler, CNH, Scania, Iveco, John Deere, Yutong and Lely. Last year, the facility concluded that to remain the market leader in rolling equipment processing it needed to start challenging its fixed ideas and think outside the box. To tackle the challenge head-on, it turned to the company’s Way of Working (WoW) programme, which gives employees the tools to get rid of “waste” or inefficiency so that they can work safer, easier and quicker. “We wanted to improve our business performance during a very challenging business climate with fierce competition,” explains Steve Beck, WWL’s New South Wales Technical Services Manager and the man in charge of the site. “This competition forced us to think proactively about what we could do to position ourselves for the future.” Port Kembla had already introduced the Lean Management programme in 2008, so WOW was a logical next step. “Lean often sets alarm bells ringing because it implies cost savings,” Beck says. “Yes, we did save money, but this wasn’t enough to achieve our improvement ambitions. WoW is great because it goes beyond lean management techniques to cover business key performance indicators (KPIs) and goal setting. It challenges ideas we have ingrained in our heads and encourages us to share best practices with other processing sites in the WWL global network.” “The methodology behind WoW is that it will continuously evolve as the business grows” ABOUT PORT KEMBLA EPC WWL’s Equipment Processing Centre at Port Kembla offers customised turnkey solutions to the mining, civil, automotive, construction and industrial sectors. This includes processing of rolling and static equipment, trucks and machinery; product preparation; mechanical services; paint services, from small touch-ups and repairs to complete projects; and bonded storage and quarantine. Karen Radford, Head of Land Based Operations in Oceania, says the implementation of WoW has allowed the teams to continuously challenge the boundaries and created more frequent interaction between them, promoting harmony. “All these factors contribute to improved quality and customer satisfaction,” she says. “What’s also so positive is that all equipment processing sites in OUR CUSTOMERS GET FASTER TURNAROUND BECAUSE WE CAN SERVICE THEM QUICKER AND WE NOW HAVE CLEARER PRODUCTION TIMES” Australia will become WoW compliant too.” WoW has not only affected the staff ’s way of working, but customers are also starting to see some benefits. “Our customers get faster turnaround because we can service them quicker and we now have clearer production times,” Beck says. “For example, we have measured time per activity (TPA) for a truck manufacturer and now we can process their trucks faster, which is good for them and for us.” The TPA is worked out through collaboration between the customer and WWL, providing both parties with clear guidelines on expectations and a step-by-step guide on the most efficient way to complete the process. It speeds up the turnaround process. Radford believes the strong focus on WoW is an investment for both WWL’s business and the customer. “In today’s competitive world, it’s imperative to ensure that we continuously serve our customers in the best possible way, offering them a super quality service at competitive prices – and we are confident that WoW is assisting us to do just that,” she says. ● VENTURE 4 2015 17 fast facts 3 CURRENCY TRUST IS SUPPOSEDLY the greatest currency THE WORLD IN 2016 Another year is about to come to an end, and while it might be wise to reflect on the achievements and disappointments in the year that’s gone by, most of us tend to be more interested in what the crystal ball says about the future. So, here’s a quick take on five things to look out for in 2016. WORDS ARI MARJAMAA, HEAD OF GLOBAL MARKET INTELLIGENCE, WWL @ARIMARJAMAA 1 TENSIONS ALTHOUGH STATISTICS TELL US there are fewer wars and victims of war today than at any other point in history, it certainly doesn’t feel that way. The current conflicts that have marked 2015 will continue to do so next year. The Syrian situation has become even more desperate. The West is being dragged deeper into the conflict as a result of the immigration crisis in Europe, the attacks in Paris and Beirut and the downed Russian airliner in Egypt’s Sinai Peninsula. As military interventions scale up, we’re sure to be reminded of the situation in 2016. Other hot spots include Africa, the Caucasus and the Middle East. Even a country like Venezuela might experience political unrest on the back of a rapidly deteriorating economic situation. Although we might wish it differently, the world is unlikely to remain conflict-free in 2016. 2 TRADE AGREEMENTS GLOBAL TRADE GROWTH has weakened over the past years, raising expectations for the Trans-Pacific Partnership (TPP) agreement. The agreement contains measures to lower trade barriers by removing 98 percent of tariffs on goods traded between the participants. This will help Asia and Australia gain ground in the United States, which accounts for about 30 percent of world consumption. The agreement is also expected to drive necessary reforms in Japan. Japan is also engaged in trade negotiations with the EU, and a successful conclusion of these talks, in combination with the TPP, will have a significant positive effect on Japan’s GDP growth. In addition to the TPP, similar negotiations are taking place between the United States and Europe, the Trans-Atlantic Partnership, that are sure to get more attention as discussions progress in 2016. of all. Exchange rates depend on the trust of the market. At the same time, weaker growth tends to tempt countries to raise the competitiveness of their currencies. A weaker currency supports exports, while reduced imports will increase your growth figures. A win-win for the country, but less so for your trading partners. Thus, a weakening currency is often met with suspicion – is it too weak on purpose to gain a competitive edge in the market? This lack of trust is exactly what happened when China allowed a wider trading band for the yuan in August, sparking complaints about unfair currency practices. In reality, the effect was relatively limited and probably more related to positioning the yuan for inclusion in the IMF’s Special Drawing Rights basket, which has made it a global reserve currency. Nevertheless, the currency developments will continue to attract interest, particularly given the strength of the US dollar, which is expected to continue in 2016. Both the yen and the euro remain weak compared with the US dollar. This will support Japanese and European exports while slowing US exports. A strong US dollar will also challenge the finances of a number of emerging markets by making their debt harder to service, since much of their obligations are dollar denominated. Trust that currencies will remain a topic in 2016. 4 CENTRAL BANKING CENTRAL BANKERS’ GREY and serious reputa- tion is a bit unfair given the excitement that even their briefest statements tend to cause. Since the financial crisis they have played the leading role in financial markets. Mario Draghi, president of the European Central Bank, has vowed to do “whatever it takes” to rejuvenate European growth, and Haruhiko Kuroda, governor of Bank of Japan, currently runs the world’s largest quantitative-easing programme, set to last well beyond 2016. However, the majority of attention next year will be on Janet Yellen, the chair of the Board of Governors of the Federal Reserve System in the US. How soon and how fast she raises interest rates will be pivotal for both equity valuations and global growth. If that’s not exciting, then what is? 5 POLITICS NEXT YEAR WILL BE a year of politics. The US presidential election will take centre stage, but there are other political processes that will also have a significant impact on the global outlook. Both South Korea and Australia have elections, and Thailand is supposed to transfer power from the military junta to an elected congress. The move has been postponed several times, but it is now scheduled to happen by mid-2017. Spain is marked by increasing pressure from the secessionists in Catalonia who are seeking independence from Spain by 2017. The political clash with Madrid will resonate throughout Europe. In late 2015, Argentina elected Mauricio Macri as its new president. This marked a break with the past, and Macri’s necessary reform policies are sure to hurt in the short term but will hopefully set Argentina on a path to recovery. Brazil also has its share of political turmoil as President Dilma Rousseff struggles with historically low approval ratings, an ever-growing corruption scandal and an economy in recession. There are calls for political change, but with Rousseff clinging to power the climate is set to be tense in 2016, too. On siteY The compound for trucks and optimisation of truckloads is strategically situated close to the port and the main production area of Rayong. the heart of the action Regular ocean services link Thailand to South-East Asia, North Asia, Europe and the Americas, as well as provide connecting services to other parts of the world. WWL BANGKOK OFFICE, VPC, EPC WWL’S LAEM CHABANG COMPOUND AND OCEAN PORT WWL’S RAYONG INPLANT VPC’S LOCATION: THAILAND Thailand is a main production hub for several global car manufacturers. By the end of 2015, it is expected that the annual number of exported cars will have reached 1.2 million. Thailand is also gearing up to become a production hub for heavier vehicles. With only one major port at its disposal, the need for well-planned and efficient outbound export logistics has never been greater. WWL Thailand was established in 1999 and offers a full range of outbound logistics services for the domestic market as well as exports to overseas markets and neighbouring countries. WWL handles the whole process from factory onto its vessels or across the borders. Thanks to its domestic distribution network and range of services from vehicle processing to pre-delivery inspections, customers enjoy faster time to market. PHOTOS TIM PELLING 20 VENTURE 4 2015 WWL provides yard management at two auto factories in Rayong as well as vehicle processing for imported cars at a facility close to Bangkok. WWL provides domestic distribution from port to dealer and from factory to dealer through its fleet of trucks and dedicated subcontractors. It also offers export shuttles from factory to port. WWL offers cross-border distribution for vehicles arriving at Laem Chabang port and from Thai production plants into neighbouring countries, using its own vehicle transporters. Heavy machinery and commercial heavy trucks are also part of WWL’s logistics offering in Thailand. ON THE OCEAN What’s in a name? There’s a story behind every name, and this holds true even for Wallenius Wilhelmsen Logistics vessels. The different vessel names not only reflect the company’s history but also offer insight into the people who founded the company. WORDS TORUNN HANSEN-TANGEN PHOTOS ARNAUD SIQUET, WWL THE GREEN VESSELS (Owned by Wallenius Lines) IN 1934, OLOF WALLENIUS, the founder of Wallenius Lines, acquired his first vessel to ship soybean oil. Previously, the oil had been shipped in barrels by trucks over land he soon realized that it MR. WALLENIUS WAS AN but was more efficient to transAVID MUSIC LOVER, WHICH port the cargo by sea. The first ship was named IS ONE OF THE REASONS MT Soya after the cargo and, WHY ALL DRY-CARGO as the business grew, more VESSELS FROM 1941 AND vessels followed, all with ONWARDS WERE NAMED the same name: SOYA II, III, AFTER THE WORLD’S IV and so on. In the late 40s, all new GREATEST OPERAS” vessels were given family names. MT-Soya Maria was named after Olof Wallenius’ mother and over the years 10 female family members would lend their names to the company’s ships. Among them was Elisabeth who was the namesake for the world’s largest tanker at 33,000 dwt when it was introduced in 1958. Over the years 10 female family members have lent their names to the company’s ships. THE RED VESSELS MR. WALLENIUS WAS an avid music lover, which is one of the reasons why all dry-cargo vessels from 1941 and onwards were named after the red vessels started off very differently to that of the green (Owned by vessels. In 1887, more than 25 years Wilh. Wilhelmsen) after Wilhelm Wilhelmsen founded his company, his eldest son, Halfdan, acquired the 1,800 tonne freighter Talabot. The steamship was a profitable investment and became synonymous with success and, as a result, all the company’s ships from then on were given names with the letter “T”. Tirranna, Toscana, Shan - the “T” OVER THE YEARS, THE Tai names range from SECOND LETTER IN THE girls’ names to NAME HAS COME TO names from ChiREPRESENT WHICH SERIES nese and Japanese history and Nordic OF SISTER SHIPS THE RED mythology. VESSEL BELONGS TO.” Over the years, THE NAMING OF THE world’s greatest operas. Carmen, Madame Butterfly and Tosca, just to name a few, were both easy to remember and pronounce wherever the vessels traded. The tradition of naming vessels after operas continues to this day. the second letter in the name has come to represent which series of sister ships the red vessel belongs to. Sister ships are ships that have the same design, size and been built at the same shipyard. For example, all the vessels that begin with the letters “TO”, such as Torrens, Toronto and Toledo, are Large Car and Truck Carriers (LCTC) built by Mitsubishi Heavy Industries between 2004 and 2012. The most recent ships starting with the letters “TH”, such as Thermopylae and Thalatta whose names relate to Greek history, have been built by Hyundai Samho Heavy Industries and are the new HERO/Post-Panamax vessels. The names of the most recent ships starting with the letters “TH”, such as Thermopylae and Thalatta, relate to Greek history. THE NEXT TWO SISTER ships b eing i ntroduced in 2016 will also be given “TH” names, continuing the old tradition of naming red vessels with the letter “T”. VENTURE 4 2015 23 YOUR INDUSTRY Trends and insights affecting your business ELECTRIFICATION OF THE VEHICLE: A growing market THE DAWN OF THE alternative fuel vehicle By 2020 we’ll see plenty of new vehicles on our roads, powered by fuels other than traditional diesel and petrol. Not only will this be a new phenomenon for drivers and passengers, it also means changes for the companies transporting these types of vehicles. WORDS ALANNAH EAMES PHOTO TOYOTA, GETTY IMAGES T his summer, WWL shipped 13 brand new Toyota Mirai cars from Nagoya, Japan, to Europe (read more about the shipment on pages 8 and 9). The Mirai is one of the first hydrogen fuel cell vehicles to be sold commercially. The four-door midsize car has a range of 502 kilometres and a 1.6kW nickel-metal-hydride battery. It’s just one of the new alternative fuel vehicles (AFVs) that are making their way onto the market. By 2020, sales of AFVs – powered by electric batteries, hydrogen and gas – are expected to double. WWL, which has transported electric cars for several years, is already taking steps to make sure it’s ready to 24 VENTURE 4 2015 handle these new types of vehicles. “As with any new type of cargo, we have to adjust our traditional ways of handling vehicles,” says Captain Göran Söderdahl, head of cargo solutions at WWL, who has been sailing vessels for 23 years. “Transporting AFVs is not riskier than traditional vehicles. But we need to adapt our processes and vessels to make sure we handle AFVs correctly.” SOME EXPERTS ARGUE that there is a higher risk of fire when transporting AFVs as they contain lithium-ion batteries weighing up to 500 kilograms. Since July 2014, all ships carrying AFVs should have two sets of portable gas detectors in their cargo hold. They are used to check potential gas levels in the cargo hold to avoid the risk of a fire breaking out. And starting in 2016, a new International Maritime Organization (IMO) regulation will come into force affecting new ship builds. “Ships built after January 1, 2016, carrying AFV cargo must be equipped with explosion-proof equipment,” Söderdahl says. “In addition, the fuel system of each AFV should be checked to make sure it’s leak-proof and marked according to its fuel and engine type before transportation.” The IMO is also coming out with new recommendations for the safe handling of cars, vans, buses, trucks and other heavy vehicles that run on alternative fuels. these new r egulations, WWL formed a project group in 2013. Together with EUKOR, one of the world’s largest shipping companies; ARC, the American-based RoRo carrier; Wallenius Marine; Wilh.Wilhelmsen; and the Swedish Technical Institute, the group will conduct in-depth research to understand more about AFVs and how to handle them during transport. To support this research, WWL will e ngage with customers in 2016 to collect more technical information from AFV manufacturers. “We’ve held workshops with some customers who are planning on launching AFVs in the near future,” says Nick Bryan, WWL’s Head of Global Corporate Accounts. “It’s important to understand the requirements and implications together with them. The purpose is to cross-share information on AFVs, make sure we are all aligned on the handling process and the associated costs, and to ensure we are all compliant with the new regulations when they come into effect.” ● IN PREPARATION FOR To get better fuel economy and move towards a greener future, auto manufacturers are adding various electrification systems to their cars, including electric propulsion, fuel cells and various forms of hybrid and start/stop systems. For 2015, the global market intelligence company IHS Automotive expects the share of sales of cars with these features to be more than 26 million vehicles, or about 30 percent of total global car sales. This volume is expected to increase to 73 million units by 2022, or 69 percent of total global car sales. INSPIRATION The Orcelle Award, established by Wallenius Wilhelmsen Logistics in 2008, supports clean-tech entrepreneurs who aim to make shipping and logistics more sustainable. READING TIPS Reading tips by Mike Jackson Three book recommendations by Mike Jackson, director of North American Vehicle Forecasts at IHS. WWL CAPTAIN RECEIVES HONORARY PANAMA CANAL PILOT’S LICENCE SONJOY SEN, Captain of WWL’s vessel Tulane, has received an Honorary Panama Canal Pilot’s Licence. This licence is presented by the Panama Canal to captains who have completed 100 transits through the waterway. Captain Sonjoy has taken ships through the canal for more than 30 years, during which time he has witnessed many updates and improvements that have been made to the path between the Atlantic and Pacific Oceans. Sonjoy received the licence from Roberto Gutierrez, representing the Panama Canal Operations Division, and Roberto Jaen from WWL at a special ceremony held on-board the ship on September 14. Mary Carmen Barrios, WWL’s general manager of port operations and terminals for Latin America, congratulated Sonjoy, saying: “During the past 100 years, the Panama Canal Authority has appointed a few ‘Panama Canal Honorary Pilots’, and WWL feels honoured to have Captain Sonjoy receiving this very unique licence and to count on his invaluable expertise.” THE PANAMA CANAL celebrated its 100th anniversary last year. Since its inauguration more than a century ago, the canal’s importance to world trade has grown substantially. Up to 14,000 ships now transit the canal annually. WWL is currently the canal’s ninth-largest customer and the No. 1 customer in the RoRo segment, with up to 18 vessels transiting the waterway each month. UPCOMING EVENTS 2016 JANUARY 26-28 Automotive Logistics Mexico Mexico City, Mexico A BIG AWARD for clean tech Transient Plasma Systems has won the 2015 Orcelle Award for its energy-efficient, low-emission ignition solution for automotive and truck manufacturers and engine producers at large. which specialises in nanosecond pulsed-power systems, was chosen from 10 finalists and awarded 100,000 US dollars in prize money at the Ocean Exchange’s awards dinner at the Savannah International Trade and Convention Centre on October 14. Ray Fitzgerald, WWL’s president for Atlantic, congratulated the winner, saying the solution will benefit the shipping industry as well as it helps to reduce nitrogen oxide emissions. “It’s a technology that can have a major TRANSIENT PLASMA SYSTEMS, 26 VENTURE 4 2015 impact on human health and the environment,” he says. The Orcelle Award, which was established by Wallenius Wilhelmsen Logistics in 2008, supports clean-tech entrepreneurs who aim to make shipping and logistics more sustainable. The winner is selected from a carefully vetted shortlist by the delegates participating in the Ocean Exchange, an annual event that WWL has sponsored since 2012 to extend the reach of the Orcelle Award programme. This year there were 70 submissions from all over the world registered in the Ocean Exchange database. MARCH 15-17 Automotive Logistics Europe Kameha Grand Hotel Bonn, Germany MARCH 14-17 Breakbulk China Shanghai World Expo Shanghai, China IT’S A TECHNOLOGY THAT CAN HAVE A MAJOR IMPACT ON HUMAN HEALTH AND THE ENVIRONMENT” “The Orcelle Award is a way for WWL to discover and promote new technologies that can help us achieve our vision of zeroemission shipping and logistics,” Fitzgerald says. “Previous winners are already making a difference in our daily business.” Drive - by Daniel H. Pink A fascinating read on how to lead high-performing teams by gaining a deeper understanding of motivation to inspire others. The Holy Bible As a Christian, this is the blueprint for my life, and its timeless message only improves with age as words leap off the page with hope, wisdom and power. Give and take by Adam Grant An inspired study that assesses the qualities of our interactions with others and how people and organisations benefit from a strong culture that supports genuine collaboration. WWL IN SOCIAL MEDIA Did you know that you can follow and like WWL on the following platforms: linkedin.com/company/walleniuswilhelmsen-logistics @WWL_2wglobal facebook.com/ 2wglobal Shanghai, China VENTURE 4 2015 27 ECONOMY If undeliverable, please return to: Exchange Office SPI STO 8010 Zurich-Mulligen Switzerland P. P. Swiss Post CH-8010 Zurich Mulligen The world AT YOUR FINGERTIPS Find the best route and sailing for your needs with WWL’s upgraded scheduling tool. The tool gives you: – easy and fast access to information about WWL’s ocean schedules – multiple search options by country, port, route or voyage – easy management of your searches and subscriptions You’ll find it under “Shipping tools” at 2wglobal.com SUBSCRIBE TO SCHEDULES Sign up to receive tailored schedules weekly or monthly by email.
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