NEW S I LK ROAD

NETWORK

INTERV I EW

ARCH IVES

20

20

When the Belt and Road Initiative was initially inaugurated in 2013, one of its integral focus was

on trade investments and cross border supply chain cooperation. To achieve this goal, large

infrastructural projects began across Eurasia, the African continent and many other parts of the

world. As these projects developed, it opened up opportunities for the logistics industry to

leverage. The motivation for the setting up New Silk Road Network was to provide a platform for

small and medium-sized logistics companies to form a community to support each other's

business along the New Silk Road. The network ecosystem brings together the expertise of not

just forwarding, warehousing, trucking and customs clearance companies, but also ports,

operators and other related services.

In that spirit, the interviews in this collection are testimonies of our members and partners'

various experiences in understanding the business along the New Silk Road, which contributes

to our knowledge hub. Our goal as a network is not just to bring like-minded companies

together, but also to create knowledge and share it with each other, as we initiate the formation

of a transparent and robust system of logistics along the New Silk Road.

To know more contact us at:

New Silk Road Network

Museumstraße 2-6, 28195 Bremen

Phone: +49 (0) 421 56646250

Email: info@nsr-network.com

CONTENTS

Opportunities Amidst Challenges: Shenzhen Anda Shun Pushes Business During Corona Crisis..........................................................................Pg 3-5

From 1956 to Today: The HUETTEMANN GROUP Story....................................................................................Pg 6-8

The Experts In Cold-Chain Along the BRI: Intermax Logistics Shares Its Wealth of Knowledge.................................................Pg 9-12

Holding the Reins of Kopf +Lübben: Thomas Manigk Shares His Journey.......................................................................... Pg 13-16

CHS Containers Handel Creates FlexibilityWith Shipper's Owned Container..............................................................................Pg 17-19

Hövelmann Logistik Sets the Standards for Responsible and Green Company.............................................................................Pg 20- 22

CSL Poland Develops West Pomerania as a New Frontier for The New Silk Road.........................................................................Pg 23-26

Agemar Global Logistics Leverages Istanbul’s Strategic Position Along the BRI...............................................................Pg 27-29

CONTENTS

A Varied Portfolio of an Expansive Company: An Interview With Rieck Holding GmbH & Co.KG......................................................Pg 30-33

Rail Freight Saves the Day: MEL Logistics Share Their Experience During the Coronavirus Pandemic................... ............................Pg 34-37

'Timing is Key': Langowski Logistics Shares Their Learnings on Becoming Pioneers Along the New Silk Road....................................Pg 38-42

Ghana’s Interest in the New Silk Road: Freight Consult Shares its Growing Interactions with China..................................Pg 43-46

Navigating Historical Moments and Present Challenges: TIJ Freight Services on the WTO Effect and COVID-19...............................................Pg 47-50

Gearing up for Brexit: Otentic Customs Shares its Thoughts on the Coming Changes............................................................Pg 51-54

A Century of Progress: Container Service Friedrich Tiemann Shares its Past, Present and Future...........................................................Pg 55-59

Ocean Bright Paves the Way Through Sea and Rail..................................................Pg 60-64

O p p o r t u n i t i e s A m i d s t

C h a l l e n g e s : S h e n z h e n A n d a

S h u n p u s h e s b u s i n e s s

d u r i n g c o r o n a c r i s i s

Businesses across the globe have witnessed verydifferent scenarios because of situations created bythe novel coronavirus. Our NSRN members also hadtheir fair share of challenges and discoveredinventive ways to conduct the daily business. One ofour founding members Shenzhen Anda ShunInternational Logistics was kind enough to interviewtheir representative to gauge the scene firsthand.Star He, who is the Assistant of Overseas MarketExecutive Director of Ltd (ADS), informed us on howthis China-based logistics company functionedduring the pandemic, the lessons they learnt and thevalues that sustained them through these times.

In a video call with Star, sitting in her conferenceroom with a wall full of trophies and certificatesbehind her, we quickly gathered the credibility of thiscompany. Star was kind enough to make time for usfrom her busy schedule, which was overflowing dueto the number of shipments that ADS is conductingas manufacturers in China are functioning at fullswing.

Here is the conversation that we had with her...

NSRN: Would you like to briefly tell our readersabout your company, so that we may know moreabout its expertise and experience.

Star: Shenzhen Anda Shun (ADS) was established 13years ago, in 2006. We are not only situated in MainlandChina but Hong Kong and Taiwan as well. We have alsoentered Southeast Asia this year. In total, we have 26offices. In the first five years, we mainly focused on airfreight; at the time we worked only with China MasterLoaders as we sold our space to them at the time. Afterthat, we began owning Master Loaders. Right now, wesell air rates to three thousand Chinese forwarders.Around seven years ago, we opened a sales team withan overseas team that looks into the development offoreign partners.

3

After thoroughly checking their products, wesometimes help them transport their goods. But thisis a case by case situation.

NSRN: Were there any other troubles that youfaced while transporting to Europe, especially asthe coronavirus epicentre moved towards Europe

Now, we have diversified to 60% of air freight and40% of ocean freight. Three years ago, we started railfreight as well. We conduct rail consolidations to andfrom Europe and China. In 2019, our rail freightoperations increased to 10%. So, we do rail, oceanand air. We are quite a famous brand in China for airfreight, and now gaining significance in oceanfreight. We are young in rail freight, but we seesustained growth for ourselves.

NSRN: In recent times, how have you conductedbusiness with Europe? Have you faced anytroubles?

Star: Largely, we have been transporting PPEs and othermedical supplies to Europe during this period. Rightnow, it is very tough even though we have a lot ofbusiness on hand. The supply chain needs to continuewithout breaks because many lives depend on it.

A supply chain worker is essential during this period. Wedon’t get a lot of sleep these days, and we work very latebecause the goods need to arrive. It’s a crazy time! Butit’s not just Europe; we have been shipping to othercountries that are majorly hit by the CoVid-19 such asUK, US and many in Africa as well. We are doing at leastone cargo charter every day. Apart from medicalsupplies during this time, we organise several shipmentsfrom different parts of China. We move tech equipment,clothing, auto parts, daily necessities and evenchemicals. Now, since we have expanded throughSoutheast Asia, we export from there as well. That wasjust the exports. We also do import such as foodessentials, and even cosmetics from Europe!

Sometimes, the trouble occurs when the shipper doesnot know how to prepare a medical license. Admittedly,we only transport if the license is available, butsometimes, we try to help them because we have amedical license.

and custom regulations became stringent?

Star: We had heard of some trouble, but since the1st of April, the Chinese authorities have appliedtighter regulations on medical exports from China.They are conducting strict quality control,certification and customs inspection.

4

With these measures that China has taken,problems in Europe and the US with pieces ofequipment are getting better.

NSRN: With your experience, would you like togive a word of advice or caution for companieswho are a part of the supply chain industry, inthese difficult times?

Star: We need to make sure that people know howto protect themselves from the virus.

The daily protection must be undertaken by thecompany to safeguard its staff. When businessesbegin to open, and people start going to work, theyneed to have enough PPE related necessities for theemployees.

In China, many companies have cut down the salariesof upper management to allow the smoothfunctioning of their setups. If a company is in goodhands, the staff are in good hands, and thereforeclients are looked after. Our end goal is to make sureour customers feel secure and comfortable.

Published: 29th April, 2020

5

F r o m 1 9 5 6 t o T o d a y : T h e

H U E T T E M A N N G R O U P S t o r y

Founding member of the New Silk Road Networkand an experienced player in the market forwarehousing and trucking, the Huetteman Groupwas established in the year 1956. In sixty-threeyears, they have grown their business andcemented their grip in the European supply chainsector. To understand the history, legacy and theircurrent circumstances, we spoke to Manfred Köhler,the Managing Director of the HUETTEMANN GROUP.

Sitting in his office, Mr Köhler exudedprofessionalism along with humbling knowledgethat comes from years and years of experience. Hejoined the company 30 years ago and has beengrowing and changing with them. He believes thatthe reason for his commitment lies in the simplefact that the company is diverse in its functioning,which allowed him to learn and explore manydifferent things with them.

In conversation with Mr Köhler...

NSRN: HUETTEMANN was founded in 1956; it hasbeen more than 50 years since. What has thecompany’s journey been like over these years? Whathas been your role in the company?

Mr Köhler: It has been sixty-three years, precisely. Thecompany was founded at a time in which Germany wasrecovering from the repercussions of the Second WorldWar. It was a phase of economic boom, and the growthof the German heavy industries, such as steel. Thisperiod was a founding moment for transport, known aslogistics. We are one of the companies that originatedbecause of these conditions. The company was set upby Wolf Hüttemann along with his friend Paul Obhues.However, a few years down the line the family acquiredall the shares and has since been a family run business.

6

To my surprise, I realised that Duisburg is one ofthe most famous German cities in China, besidesBerlin. For this reason, Duisburg is a significantlocation and it also permits us to expandourselves in rail freight, which is booming here.

NSRN: Has the Covid-19 crisis impacted yourbusiness in any way?

Initially, HUETTEMANN was a trucking company thatconducted transport within Europe. In the 70s and80s, we expanded into forwarding and increased ourabilities to buy and sell freight volumes. Soon after,we added warehouses across Europe for consumer,industrial and miscellaneous products to ourportfolio. Another exciting direction the companyundertook was when we began outsourcingsolutions, which means that we have capabilities totake over consignment departments of variousmanufacturing units. Apart from theseachievements, our focus has been to expand thegroup by purchasing other logistic companies orstart shared ventures. The first subsidiary was acompany from the Netherlands which we developedto one of our very successful facilities – RabelinkLogistics – including subsidiaries in Romania.Though situated in lots of different German cities aswell, evidently 50 percent of our turnover is madeoutside of Germany.

I joined in the 1990s and have been a part of theHUETTEMANN GROUP ever since. A lot of peoplewondered why I never switched to any othercompany, but for me it was not a question: Our groupis very diversified, and it gave me countlessopportunities to develop. Not a single side of thecompany does the exact same, we engage with avariety of different industries, and that is what haskept me involved over all these years. Besides, beinga family owned and lead business, the values of trust,reliability and stability are at the core of the companyand are practiced internally and externally day byday. That is another reason why I feel at home withHUETTEMANN.

Our head office is situated in Duisburg, withoperational setups across Europe. We are trying togrow our business with Chinese companies and to dothat I had visited China with a delegation fromEurope with the Mayor of Duisburg as well.

What are the steps you have taken to cope with it?

Mr Köhler: It would be mysterious if a company werenot affected by the coronavirus crisis. So yes, we seesome impact. For example, our toy logistics facedtroubles as stores have shut completely.

7

We were hoping for e-commerce to compensate thedecline of retail business, but it did not. There is alsotrouble with trucking, as there were too many trucksand too few shipments. At the same time, our foreigntruck drivers could not get to their vehicles here inGermany due to travel bans. There is a rest period forevery driver, after which they get back to theirtrucks.

Unfortunately, the drivers were being stopped at theborder or quarantined, causing some confusion forus. However, on the other hand, our food transport isvery stable and continuing to do well. We had alsoconducted air freight of medical supplies from Chinato Hamburg a few weeks ago. But we are adaptingdaily and keeping track with the developmentssurrounding corona. It is not just coronavirus thathas made us re-adapt our strategies. We have beenpreparing for Brexit as well, and therefore gettingused to custom regulations at borders.

Before the Schengen Area, we had a large customsteam, and made quite some revenue from it too. So –no matter what issue comes up – in the end it isabout the degree of flexibility that you can exercise.And that is something we excel in.

NSRN: Is there a piece of advice that you wouldlike to share with our readers, members and thosein the supply chain industry?

Mr Köhler: Firstly, do not lose hope even in the worstof times. Fear and hopelessness can affect yourbusiness more than the actual issues to deal with.Next, remember to adapt yourself to the situation.What we had learnt 30-40 years ago may not applynow, so therefore we need to develop the ability tothink outside the box. The world has faced manyperils after the Second World War, such as the fear ofanother war, oil depreciation, global financial crisis.Still, it has never faced something as unpredictableas a virus. Even six weeks ago, it never occurred tomost of us that we would see a day like this. So, wemust think outside the box and continue ourbusinesses.

Published: 29th April, 2020

8

T h e E x p e r t s I n C o l d - C h a i n

A l o n g t h e B R I : I n t e r m a x

L o g i s t i c s S h a r e s I t s W e a l t h

o f K n o w l e d g e

Intermax Logistics Solutions has developed a namefor itself as experts in cold-chain logistics along theBelt and Road and are active members of the NewSilk Road Network (NSRN). With 11 offices acrossChina and strong business coverage across Eurasia,they strive to build reliable connections betweenEast and West. Recently Rob Brekelmans waswelcomed into Intermax as their European BusinessDirector. Our team had the pleasure of speakingwith him about the development of Intermax, theneed to adopt a "Hub and Spoke" system in Europe,and the importance of wholesome as opposed tolow-cost transport solutions.

Knowledgeable and worldly are the mostappropriate adjectives to describe Rob Brekelmans.Sitting in his mahogany tinted home-office, with abackground of huge bookcases, Rob exudedintimate knowledge of the logistics industry. Here iswhat we learnt…

NSRN: Would you like to tell our readers moreabout your company's profile? What is the growththat your company has achieved to date?

Rob: Intermax was started in 2001 by Michael Miao.It began as a freight forwarding company, and it alsoperformed project cargo worldwide, involving heavymachinery. In 2016-17, I was the managing directorfor New Silk Way Logistics, and Intermax washandling all cargo for them in China, and that is howI got in touch with Michael. We mutually developedthe business focusing on eastbound instead ofwestbound, which is typical. That is where there is alack of knowledge and know-how of the operationsexist. We could prove to our customers in Europethat we have value by dealing in door-to-doorservice.

9

The problem for most European companies isthat they do not have a solid base in Chinawhere you can deliver your goods to thecustomer's door and undertake customsclearance. However, 99% of our business is door-to-door, both eastbound and westbound. Wemake deliveries from any point in Europe to anylocation in China. Apart from China, we offersimilar services to Korea, Japan, Thailand,Taiwan, Vietnam and other countries inSoutheast and East Asia.

Apart from the Belt and Road Initiative (BRI),Intermax also deals with air freight and projectcargo. Another one of our exciting aspects is thatwe also have a trading license. We allow ourcustomers to buy and sell in China using ourlicense. We also have a shipping agency,including river and barge services. Apart fromthat, we have our own trucking company,customs agency, and we also help our customersnavigate the Free Trade Zones in China. We alsohave accessibility to bonded warehouseswithout VAT or import duties, in these FreeTrade Zones.

NSRN: Can you tell us a bit more about yourbackground and role at Intermax?

Rob: I have been in the freight forwardingbusiness since 1984. I work and live in the city ofBreda, Netherlands, but I have worked all overthe world: Russia, USA, Saudi Arabia, Morroco,Romania, even Egypt. Mainly. I was always ininternational logistics starting with air freight,then ocean freight after which I set up Europeandistribution centres for foreign companies. Ihave a strong foundation in the logistics ratherthan freight forwarding, transforming truckingand forwarding businesses into internationallogistics companies. I joined Intermax to helpdevelop their business and focus on the railbusiness to/from Europe specialising in coldchain logistics with green solutions, includingdeveloping 45-foot reefer containers.

NSRN: Intermax provides door to doorsynchromodal services between Europe and Asia,with a strong focus on the BRI routes. How has theBRI related to transport solutions impacted yourbusiness?

Rob: Before the Belt and Road, there was only oceanfreight and air freight. We were delighted when thissystem was established, unfortunately, you see a lot ofreluctance in Europe because all things that areunknown or related to China are approached withsome scepticism. But I explained that this a way toopen to the world and gain more opportunities.

Instead of wrongfully assuming that China isconquering, look at the number of avenues that haveopened. People think that the BRI is only for trade viathe rail freight, but the idea is also for cultures tomingle and countries to develop in tandem. At thisjuncture, we come in with our focus on eastbound,because of a large market there. Initially, we looked atthe types of products coming in from China, whichwere primarily electronics. However, we wished toexpand the pharmaceutical company coming goingfrom Europe to China. Most companies only can deliverfrom door to hub; that is why they do not havecomplete control over the product, unlike us.

NSRN: What do you think are the significantchallenges that need to be overcome for the NewSilk Road, especially with the rail routes, so thatmore people adopt them, and it becomes moreefficient?

Rob: Due to the current corona crisis, air cargo took ahit. Before corona, we could compete with air freightonly rate-wise. Many companies had shipments cominginto Shanghai, which had to go to the inland of China.However, these situations take a long time by beingstranded at the hub. With rail freight, we could cutdown on that time, by going towards the inland. Theseare the advantages of rail freight; its speed makes itfaster than ocean freight, at the same time cheaperthan air freight. Moreover, it is reliability where wecome in and where I see a lot of value in the BRI.

10

Then combine those and then move them to Warsaw orHamburg, Duisburg, Paris, from there on distributesthem to the receivers. Hub and Spoke system is thefuture of the BRI.

I have been giving lectures on the Hub and Spokesystem in China and Europe. Rather than pointing outthat there may be competition between different citiesand provinces in China, I suggest that they focus on aspecific region in China and from there consolidate theproducts, bringing them to a particular location inEurope. We are looking at a door to door solution withregards to the Hub and Spoke system.

A few years ago, we saw massive development ofrail systems in Europe, but there was not enoughcargo moving on it; hence they were shut down. Ibelieve that the concept Hub and Spoke Systemcan tackle this issue. We need to develop the Huband Spoke system in Europe where containersarrive in a European city with a hub. From thisspecific hub, the product is either trucked to thedestination or sent via rail. In connection withBRI, people need to adopt the Hub and Spokesystem.

To give an example of a Hub and Spoke system,imagine if cargo has to be transported from Chinato somewhere in the middle of Europe. You canconsolidate products from Shanghai or Beijingand bring them to Xi'an.

NSRN: Intermax has a distinct edge intemperature-sensitive cargo, such aspharmaceuticals and perishables, and alsohorticulture/greenhouse products. It is quite aniche market; how do you view the future ofthis area?

Rob: I see a development in the future of theformer Russian Embargo products such as frozenmeat, fruits or other types of perishables whereyou see the use of reefer containers

We have already developed these in Intermax. Apartfrom that, there is a movement of plants and saplingsto/from China. Customs-wise in China, you cannotdeliver all the products to all the stations. In Europe,we have the Common European Customs Law, whichallows the clearance of cargo at the nearest Europeanborder, preventing complication at different countryborders, but this is not the case in China. If you want todeliver seafood, you can go to Xi'an, but not to Wuhanor Hefei.

11

You need to have the customs license and the CIQ(Customs Information and Quarantine), which isnot the same everywhere. People think that youcan deliver to a particular hub because the ratesare meagre, but the problem is that you cannotuse it. A lot of logistics people are not aware ofthis information. We have the expertise, and wehave the equipment to make sure that productsreach safely.

In Intermax, we are working on solutions, andthat's why we want to use NSRN as a base wherewe share our value with the members in thenetwork. We are not competing with currentfreight forwarders in Europe, because they havetheir own market, and we are not setting up ourown company in their regions to compete. We areneutral players and respect all relationshipsbetween customers and forwarders. Ourknowledge is not a threat; on the contrary, wewish are adding value for their customers utilise.

NSRN: Are there any recent/flagship shipmentsthat demonstrate Intermax's capabilities incold chain logistics that you can share with us?For instance, we heard that you moved smokedsalmon via rail, how did that go?

Rob: It is essential to know about the newdevelopment taking place in the logistics industry,and more so using them for one's benefit.The Russian Embargo was already opened lastyear in March, but you need an electronic seal,which is put on the containers by Russians andremoved on arrival.

Unfortunately, these seals were unavailable, and oneneeded a license to receive them, which were absentat the time. After managing to procure those, withNew Silk Way we were able to move the first salmonshipment from Norway to China. One begins bylooking at the number of hurdles and resolving them.We have also developed an 'Intervention System',where we have maintenance crew along the routesthat solve any problems that might crop up with thereefer containers. We track the containers and receivea real-time electronic alert which is shared with ourpartners who are doing maintenance.

NSRN: On a final note, would you like to sharesome wisdom with our readers, members andthose in the logistics industry?

Rob: If you are going to your customers to get newbusiness, you will face competition. But the problemis that everyone goes for low rates and not thesolution. You must convince your customers that inthe total group one has expertise in either a region ora mode of transport. The key is to work together andcombine our strengths to deliver a reliable solution.We have already worked with another member inNSRN, transporting cargo from the southern part ofChina to south Germany during the coronavirus crisis.We have advantages that go beyond just hankering forlow rates. We are transparent and are competitivewith the benefits we offer.

Published: 27th May, 2020

12

H o l d i n g t h e R e i n s o f K o p f

+ L ü b b e n : T h o m a s M a n i g k

S h a r e s H i s J o u r n e y

Honesty, integrity, and respect, these are theguiding principles of Kopf + Lübben Cargo Services,a company established 44 years ago, and foundingmember of the New Silk Road Network (NSRN).Kopf + Lübben is an international logisticscompany with a network of offices in Germany andChina. They are one of the critical playerstransporting along the New Silk Road, with years ofexperience and knowledge. To understand theremarkable history and legacy of the company, wehad a chat with Thomas Manigk, the soleshareholder and one of the Managing Directors ofKopf + Lübben.

We delved into the changes over the years that ledto Kopf + Lübben’s growth and success. He spoketo us about the relevance of the New Silk Road andits growing influence in the logistics industry. MrManigk also shared his perspective on diversifyingone’s businesses and developing strong bondswith customers. His journey with Kopf + Lübbenbegan in 1995, and with his ideas anddetermination, the company has achieved manylaurels.

NSRN: Kopf + Lübben Cargo Services is a 40-year-old company with a remarkable legacy. Founded in1976, it has established itself in all forms oflogistics. We would like to hear more about thefounding of Kopf + Lübben, and some incidents ofinterest that brought the company to excellencetoday. A little history lesson for our readers, per se.

Thomas: The company was founded in 1976 by WalterKopf. He was working in the forwarding industry as anemployee and after a while decided to start his owncompany. In 1978, only two years after commencingbusiness, he acquired a small company, consisting ofjust five staff members, one of whom was JohannLübben, which is where the second part of thecompany’s name is derived from.

13

NSRN: In the year 1998, you took charge of Kopf+ Lübben Please describe your role and thejourney you undertook with this company andhow has the company changed then? On a sidenote, has your mind always been set onlogistics, or do you have other interests too?

In 1987, another company by the name of W.Lohmann & Co. , located in Germany’s largestseaport, Hamburg, was bought. By 1992, we hadestablished an NVOCC service, and by 1994 thecompany obtained its IATA license enabling us toconduct air freight. I joined the Kopf + Lübben teamin 1995 as a director. In 1998 Walter Kopf andJohann Lübben went into retirement, which iswhen my wife and I took over the shares. In 2002,we completely changed our corporate identity,moved our head office and took the company toanother level. It was a common notion back then tounderstand freight forwarding companies astypical ‘sleeves-up’ kind of job. Some forwardersdid have multiple offices but most were usuallyregional in reach. We changed the image of thecompany to what it is today. It was always myintention to differentiate ourselves from others byreflecting an image which is entirely different fromthe typical freight forwarding scene.

It was our ambition to become more professional inwhat we did and to be taken more seriously, in anenvironment where freight forwarding wascommonly seen as a necessary evil rather than amuti-facetted, exciting “go-to” industry. Thecompany is headquartered in Bremen and wasinitially located in the port area (Überseestadt) andlater moved to the Airport area, which was a new andmodern development. This move convenientlycoincided with the image that we wanted torepresent.

Two episodes were quite significant for the companyand I. First, when I took over the shares of thecompany, the responsibility involved from then on Itwas a completely different aspect to being employedin a company. It had a considerable impact on my lifefrom thereon. The second was the financial crisis of2008 / 2009 which nearly broke our neck. Although inthe long run, it probably did us good because itchanged how we dealt with specific issues.

Thomas: Let me briefly recap my background foryou. I am South African of German descent. I workedfor a German freight forwarding company in SouthAfrica. Their head office is located in Bremen, andthey sent me here on a two-year contract with theintention of me returning to South Africa thereafter.

14

Shortly before my return, I met, Christina Kopf,daughter of the founder of Kopf + Lübben, nowmy wife, which is why I’m still here in Bremen(laughs). I believe that my upbringing in SouthAfrica, known as the rainbow nation, has playedan important role in my ability to understandpeople’s needs, irrespective of their background,colour or creed; a very important aspect of ourbusiness, particularly when operatinginternationally.

Since joining in 1995, the company has undergonemany changes. We have added services, openedadditional offices, both locally and abroad andhave successfully adapted to shifting patterns andthe transformation of our industry. As in manyother industries, transportation and logistics isexperiencing many changes in technology,customer expectations and business models. Newentrants in the form of start-ups exploiting newtechnologies are creating an increasinglycompetitive environment. It is our goal to not onlykeep pace, but to also set trends, as is the casewith offering rail freight services along the NewSilk Road since 2014. Each day is different for me,and there are no routines. There are variousissues to deal with everyday which makes the jobvery exciting and one which for many years nowhas dominated my life, both in the office and athome. I do, however, find time for other interests,such as good cooking and sports (I admit thatnowadays it is watching rather than activelyparticipating). I have a passion for a wide range ofmusic and a great interest in African wildlife.

NSRN: Values preserved and lessons learnt,cement a company’s foundations. What aresome of the values that you learnt whileworking here and what are the values that youwould like to teach those who will carry yourlegacy forward?

Thomas: For a long time, the freight forwardingindustry was not seen as an industry with muchintegrity. I am very pleased to see that over theyears, the industry has become a lot moreprofessional which has enhanced its prestige.

The transformation which has taken place, such assupply chains which have become a lot moreintricate, e-commerce, digitisation, blockchains etc.have attracted a large number of diverse professionsto our industry. This, in turn, has made freightforwarding and logistics more attractive for youngergenerations. As a company, we are very involved invocational training and in ensuring that our staff hasaccess to further education. What I am getting at, isthat while technology and the management andsupply of data have become increasingly important,our business remains a people’s business withpersonal contact to employees, customers andvendors remaining an integral, important part of thetotal picture. So, while I recognise that technologicalinnovation is indispensable, our staff remain our mostvaluable asset. I sincerely hope, that this social streakis something that our company will never lose,thereby making us a future-proof, exciting employerwith a bright perspective.

15

NSRN: Since NSRN is a logistics network thatfocuses on the Belt and Road Initiative, how doyou see the role of rail freight for the future oflogistics? What challenges are there still toovercome for rail and intermodal logistics tobe more effective?

Thomas: We have been involved in the New SilkRoad, ever since it began. At the outset, much likeeveryone else, we didn’t think there was much ofa future.

There were a lot of uncertainties, includingpolitical challenges. It was only with time thatpeople gathered more trust in the system and theNew Silk Road. At this point, I can confidently saythat rail freight will remain and grow. Despiteharsh criticism towards China, I firmly believe inthe Belt and Road Initiative, especially since therail infrastructure along the New Silk Road hasnow established itself. We transport a lot differentproducts via rail freight—automobile parts,textile, machinery parts, just about everything.Another added benefit is that rail freight is moresustainable too.

I think some issues require attention. The transittime can be shortened, apart from that, there aredifferent rail gauges in China, Russia and thenEurope. So, changing gauges can be time-consuming.

But I hear that they are working hard to solve thischallenge. Finally, the most time-consuming process isthe cross border customs formalities. There is alwaysthe risk of political influence disrupting the trains, butother than that the service itself has a solid foundationwith great potential.

NSRN: Finally, with your experience are there anylessons that you would like to share with our othermembers and readers, given that many companiesare struggling to survive in these trying times.

Thomas: We have experienced many advantages bydiversifying ourselves. We don’t focus on a single modeof transport; instead, we serve them all. In the currentsituation, when road freight has been weak, we saw thegrowth of rail freight. When the demand for oceanfreight subsided, air freight boomed. It is advantageousto have a broad base.We have been fortunate duringthe coronavirus crisis. Currently, we have been verybusy with shipments. The first three months were alittle harsh, but we have seen things improving a lot. Wehave always created sufficient reserves and we are loyalto our vendors and supportive towards our customers.When we look into the future, we see disruption, we seetransformation and we see enormous challenges aheadas a result of the downturn in the world economy. Butmost of all, we see opportunities!

Published: 28th May 2020

16

C H S C o n t a i n e r s H a n d e l

C r e a t e s F l e x i b i l i t y W i t h

S h i p p e r ' s O w n e d

C o n t a i n e r s

We recently caught up with Rebekka Wang,Managing Director of CHS Containers Handel’sChina office. CHS Containers Handel is one of thefounding partners of New Silk Road Network(NSRN). After finishing a busy day's work, Ms.Wang spoke to us regarding various topicsinvolving their business.

Apart from an already established set up inEurope, we learnt how the China branch, led byMs. Wang is extensively growing their presence inthe region and playing a part in connecting Eastand West. On a more important note, Ms. Wangdescribed the benefits of Shipper's OwnedContainers (SOCs) and their increasing demand.Finally, Ms. Wang also stressed on the need forhaving a strong partner and customer base thatwill see a company through unforeseeableoccurrences.

NSRN: We would like to dive into CHS's operation inChina. When were the offices set up, and what wasthe process of expanding into the Chinese market?Moreover, as you are the Managing Director of theCHS's China operation, when did you join thecompany and what are your roles andresponsibilities?

Rebekka: CHS Containers Group is a German company,started in 1978 and in 40 years it has expanded throughGermany, Europe and now in China. We are a part oftheir operations in Asia. CHS began their first office inTaiwan, to cover the Asian continent, but it did notwork out. So CHS built up their operations in mainlandChina, and we are based in Shanghai.

17

We registered ourselves in 2018, and I joined theChina operations team in 2019. Although, I havebeen a part of CHS Containers since 2001,working for their daughter company WCT. NowI'm reunited with the mother company. So it'sbeen almost 20 years.

Essentially, I trade containers worldwide. This iswhat I have done in this business for almost 20years now. For CHS, it was necessary to come toChina to do some business along the New SilkRoad. It was also a good time for me to join, and Iam quite happy here. I appreciate thisopportunity and my colleagues. I hope they arehappy too! (laughs). We have a small yethardworking team of 5 people that werecarefully selected for the task at hand. So muchof my work takes place over the mobile phone,so it goes where I go. Even my colleagues workthis way. The customers or truckers reach out tous anytime they have a problem, so sometimesthe calls come at odd hours.

NSRN: The Belt and Road Initiative has beensignificantly contributing to connecting theEast and West. As New Silk Road Network'sfocus is on the creating a transparentenvironment for business', what would youthink are some of the misconceptions thatpeople have while conducting business with acompany based in China? Is it different beinga China-based branch of a German company?What are the main challenges in intermodaland transport along the Silk Road?

Rebekka: CHS containers is a well-known andreputed German company, with remarkablework-ethics. Our partners and customers arealso acquainted with our work ethos. CHS China,imbibes the same European working culture andour own Chinese style, in this way we cater toour customers from all across. One of the mostsignificant issues that lots of Chinese companiesface is communication, but we do not face thatin CHS China since we are multilingual. We liketo make our customers feel comfortable.Moreover, we offer them fair prices and safecargo handling.

Coming to intermodal, it is still brand new and cannotbe compared to the big sea vessels or the speed offeredby air cargo. You cannot do the same with air or seafreight, as the cost of air freight is too high and seafreight takes a long time. Even though there might a lotof challenges, we believe that there is untappedpotential, but one disadvantage is that it is not aspopular in Europe as compared to China. That is whymany European countries are unaware of the steps toundertake while conducting intermodal transport.

We hope to share our experiences with other Europeancompanies, and that is why such a network issignificant.

NSRN: As CHS mainly works with shippers' ownedcontainers both on the sea and rail freight side, howhas the business related to these two modes oftransport developed for you? What are the commonmisunderstandings or opportunities missed out forpeople when it comes to leveraging SOCs?

18

Rebekka: We not only have demands fromshipping lines or railways, but we have also hadsustained opportunities to perform project cargo.Thankfully, we have a massive demand from allover. This is what many local companies do nothave. One of the problems that we sometimesface is that people do not know how to book orhandle SOCs. We have to inform them step-by-step and take them through the procedure.However, more and more companies are nowlearning about SOCs and prefer it.

We can move containers from China to any part ofthe world, including America. We also allow ourcustomers to keep containers for a longer time.We understand that returning empty containersstrains the pocket of our customers. Therefore, wealso offer to give back the containers to shippinglines. With our network of partners andcustomers, we often repurchase the containers,keeping it as flexible as possible.

NSRN: Many people say that the hub system forrail freight is not yet as mature as oceanfreight, given that it is less mature, what isyour take on that?

Rebekka: Of course, rail freight is new and willtake some time to reach the abilities of oceanfreight. Our business is with containers; therefore,we have a broad base of clients, including railwaycompanies and some government platforms too.

Even though we don't do logistics, there is muchbusiness for us with rail and ocean freight. Since theHub and Spoke system is healthy in China, we alwaysmaintain a good relationship with truckers, as they liketo know whom they are working with. We have manygood connections with trucking companies and canhelp our customers with last-mile delivery in China.

What is most important for us is to have stablecooperation with our customers and partners, and thisis because we provide better rates; we are flexible, andwe undertake all procedures professionally.

NSRN: Was there an impact because of coronaviruson Chinese operations? If so, what were themeasures you took to stabilise the business andretain customers? Were there any lessons learnt?

Rebekka: Unfortunately, the coronavirus caused someunprecedented situations for us at the time. FromFebruary to March, things were at a standstill as thedepots were closed and the containers could not moveat all. However, things have changed, and everything isback to normal now. The business has considerablypicked up, and we are doing well again. There wasmuch to learn from this experience. It has been thesurvival of the fittest, but that can only be achieved ifyou have secure and reliable partners who will be therefor you in time of crisis.

Published: 28th June, 2020

19

H ö v e l m a n n L o g i s t i k S e t s

t h e S t a n d a r d s f o r

R e s p o n s i b l e a n d G r e e n

C o m p a n y

Hövelmann Logistik, a founding member of NewSilk Road Network (NSRN), is a company 75-year-old company with a unique legacy and an excitingpast. A family run business, Hövelmann has beenresilient over the decades because of a distinctivefactor that we learnt about in an interview withFrank Maslock. Mr Maslock is the branch managerfor Hövelmann Logistik’s set up in Haldensleben,where he has operational and managerialresponsibilities. Working with the company forover seven years, Mr Maslock gave us a glimpseinto Hövelmann’s business model and ethos.

The talk covered the humble beginnings ofHövelmann Logistik and their path to success.Moreover, we learnt about the companies widearray of facilities and their strong commitmenttowards running a sustainable company. Thedistinctive factor that Mr Maslock pointed out tous reflects well with NSRN, and that is the need forgood networking.

NSRN: 1945 was a memorable year in Germany’shistory (death of Hitler and surrender of Germany),this was also the year that Hövelmann Logistik wasfounded. How was the climate for new businessback then, and what were some of the challengesthat the early founders had to overcome? How has itinfluenced business today?

Frank: The conditions for running a company weredifferent back then. So naturally, it required ingenuityto manoeuvre in such a scenario. Our founder,Bernhard Hövelmann, the founder of HövelmannLogistik, was a great talent. He began as a baker’sapprentice and then bought an old wartime truckwhich he used to transport coal from Ruhr area to thelocal farms, he even carried pigs to and from theslaughterhouse.

20

NSRN: Since you are the Branch Manager ofHövelmann’s Haldensleben setup, what areyour current roles? How long have you beenwith Hövelmann, and what has your journeybeen like? What does a typical day look like foryou?

Bernhard Hövelmann had two essential skills,communicating and networking, with which heestablished a good base for himself. Since money orcurrency didn’t exist at the time, services wererendered for goods such as bacon or sausages!

By 1951, he bought a new truck, and in the followingyears, he slowly began to grow the business. In1954, Berhard Hövelmann had three trucks alongwith a set of employees. His son, WilhelmHövelmann, joined the business at a young age. In1963, at the age of 23, he took charge of thecompany as Bernhard Hövelmann passed away. Avisionary like his father, Wilhelm Hövelmannexpanded the company immensely, as he acquired230 trucks, 700 employees and a total of 100,000 sqmeters of storage area.

Three significant milestones shaped the company towhat it is today.

First, in 1968 Hövelmann opened a branch in Berlin, atthe time the Berlin Wall stood firm so it was quite aprivilege to get permission from the West Germanauthorities to set up a branch there. Second, after thecollapse of the Wall, Hövelmann went to Haldenslebento take over the transport company there and furtherexpand their set up. Finally, in 2014 Hövelmann delvedinto contract logistics. The company transformed fromforwarding to a logistics unit, acquiring almost80,000sq meter of space at that time.

Though the company had seen many changes since itsbeginning in 1945, the core values acquired then drivethe company forward today. We always build a secureconnection with our customers and strive to findsolutions for all their needs. Moreover, we have the willto develop and grow with a sense of openness andinclusivity. Finally, the most critical aspect is tocontinue networking, that helps to maintains ourrelationships and increases our reach.

Frank: I joined Hövelmann 7 years ago and amresponsible for warehouse setups in Haldensleben andcustomers. We perform food, textile and automobilelogistics for our clients. Interestingly, no one day issimilar at work.

21

Since there are many different tasks to look afteron a day to day basis, the job is very exciting forme! I have always been a part of the logisticsindustry. I finished my studies in Bremerhaven inthe 1990s and began working in this sector. Mywork with Hövelmann is engaging and keeps meon the go. I have many different responsibilities inthe Haldensleben branch. I have operationalduties which involve keeping a close eye of thewarehouse operations daily. I have managerialresponsibilities that require me to look after mystaff and delegate duties. Finally, I am alsointensely involved in customer support andmanagement. Some of my additional tasks includeacquiring new customers, calculating and planningbusiness with new or existing customers.

NSRN: Since NSRN focuses on the Belt and RoadInitiative, what do you think are the challengesfaced by a company like yours when it comes tobuilding a business with China and other regionsalong the BRI?

Frank: In principle, we work with producers andtraders in Hövelmann. Naturally, we believe that theNew Silk Road is on an upwards path in terms ofexpansion. We are looking for qualitative growth whenit comes to this initiative. We understand that manycompanies are working along the Belt and RoadInitiative.

However, we are a purely national company; we mostlyprovide value-added services, such as last-mile deliveryor warehousing.

Since our focus is mainly on the national scenario,we don’t partake in the sea or air freight. For othermembers in NSRN, we offer the services that I justmentioned and ensure that we provide top-notchfacilities, and find the best possible solutions forthem.

NSRN: As a large part of your company is involvedin trucking and warehousing, are there activesteps that you incorporate in your company to besustainable in your operations?

Frank: We are very committed to having a sustainablefirm. We understand that trucks are not the most eco-friendly vehicles, but we take multiple steps to cutdown our carbon emission.

Moreover, we have installed technology that preventsempty mileage. In short, we are committed to having asustainable firm with a focus on reducing our carbonemissions, as we find the most economical and greensolutions for our customers.

Published: 28th June, 2020

22

C S L P o l a n d d e v e l o p s W e s t

P o m e r a n i a a s a N e w

F r o n t i e r f o r T h e N e w S i l k

R o a d

When running a logistics company, most of us arefocused on acquiring the cheapest rates, growing ourbusiness fast and connecting with numerous partnersacross the globe. However, NSRN's member CSLPoland has a different outlook. We spoke toPrzemysław Hołowacz, the Chief Development Officerof CSL Poland about creating a thriving businessbased on inclusivity and supporting the localcommunity.

CSL Poland was started by Mr. Hołowacz’s mother,Laura Hołowacz, whose ingenuity and skills created abusiness that focuses on providing safe and reliableoptions for their customers. The mother-son duo isnow leading the company towards excitingdevelopments, such as the European Union funded,CCIC terminal in Dunikowo.

In conversation with Mr. Hołowacz…

NSRN: Your company was established in 1998, sincethen you have created a strong business focusing ondeveloping connections between China and Poland,along with extending your reach to Germany andScandinavia. Can you briefly describe for ourreaders the history behind the foundations of yourcompany and the journey since?

Przemysław: My mother, Laura Hołowacz, started thiscompany in 1998. At the time, few investors came to herand proposed some support to start the company. Withonly 3000 euro as the initial investment, my mother,along with her small computer and a car, started thiscompany. Her knowledge and experience helped ourcompany become one of the most significantforwarding units in the region.

23

She started CSL to develop a reliable and safeforwarding unit. I, on the other hand, joined thecompany more than seven years ago. I startedworking from the bottom rungs of the company andworked in different areas to gain varied experience.As of now, I am the Chief Development Officer ofCSL.

We conduct land, air, sea transport and we have oneof the biggest customs agencies in our area. We arelocated in all major Polish cities, such asSwinoujscie, Stettin, Gdynia- Gdansk. We have adiverse customer network and work with clientsfrom the aluminium sector, pulp and paperindustry, food industry, e-commerce business andmany others.

We are certified by many international agenciessuch as AEO, IFS and ISO. As I already mentioned,we want to create a feeling of safety for ourcustomers by protecting their cargo and assets.Moreover, we grow with our partners by cherishingtheir support and commitment to expanding theirbusiness with us. CSL is developing every year,along with our clients and partners. Five years ago,we opened our new office in Stettin, which was agood investment for us. Our city recognised mymother's work in restoring this old slaughterhouseas our new office and more importantly, a culturalcentre. This brought many praises for CSL, and mymother was awarded honorary ambassadorship ofour city this month. Two years ago, we launchedanother initiative, the CCIC intermodal depot inDunikowo. Along with this we also have an ITcompany established one year ago.

NSRN: The CCIC Intermodal depot sounds likesomething that would for sure be of interest toour readers. Would you like to tell us more aboutit and also the current progress on it?

Przemysław: We are building a dry terminal, forcontainers and intermodal trailers, while alsoconnecting with some warehouse companies. Rightnow, we have compiled all the documents requiredto proceed with construction of the terminal. Wehave also received a hefty grant from the EuropeanUnion for about 8 million euros.

This is the first dry intermodal terminal in the WestPomeranian area, no other such terminals currentlyexist in the region. We noticed that this area is boomingnow. It is an excellent region to set up an e-commercebusiness, especially to move cargo to Scandinavia,Germany, and other parts of northern Europe.

Here in Poland, logistics costs are much cheaper andthe terminals are closer in proximity, as compared toGermany or Scandinavia. That is one the reasons whywe want to invest in this dry terminal, the other beingthat companies such as Zalando and Amazon arealready set up here.

We realised that road transport could not be the onlysystem from this area, also since the coronaviruspandemic we saw that many trucks were halted due tothe lockdown, causing traffic jams. That is why the railconnections are so much more necessary now. Anothercompany is building a warehouse in that area; we aretalking to more players to develop spaces for thedischarge of containers and storage of cargo. We hopeto launch the terminal at the end of 2022.

24

NSRN: How do you think the terminal can tie inwith the developments of the New Silk Road?

Przemysław: When I spoke with our Chinesepartners, they told me that Stettin is the doorway toScandinavia for goods that are coming from China.They told us that we have the best logisticsconnection to Scandinavia. In our area, somecompanies import clothes from China to the middleof Poland, for example, Poznan and from there theytransport the goods to Stettin by truck. We want toexpand the New Silk Road all the way to Stettin forthis reason and further to Scandinavia and parts ofGermany.

NSRN: Poland is one of the key stops in the NewSilk Road, but there are still some myths thatprevent many people from involving inthemselves in conducting their business withChina. As a Polish player, and an EU business,what do you think are some misunderstanding?

At the same time, it is understandable that newinitiative involves new learnings, what are some ofthe lessons that you learnt while doing businessalong the New Silk Road?

Przemysław: I think the big mistake that people inlogistics make is that they think only about their ownrespective businesses.

There was a sentence that I heard in an intermodalconference that stayed with me: 'if you want to go fastyou can go alone, but if you want to go far you shouldgo together'. If we as logistics companies want to buildgood connections with China, we need work totogether. Unfortunately, people are just working forthemselves, which may be all right for a short period,but in the long run, it is not sustainable. To go far in thissector, we must cooperate and propose to our clientsin China the best logistics option; the fastest and thecheapest.

I noticed that many manufactures only know two orthree types of transport, like air or sea. They are notaware of the opportunities for rail transport. EU hasnow discovered the importance of rail, and they aresignificantly investing in infrastructure. We havealready seen 600 million euros of investment from theEU so far, and this amount is growing every year. Polishrail connections are getting much more robust and bynext year, most projects in the country will becomplete. Poland will be the doorway to Europe for theNew Silk Road. Since we have one of the biggestterminals in southern Poland, in Sławków, where thetrains can directly come in from China withoutchanging gauge. This is a better alternative toMałaszewicze.

NSRN: Stettin is very close to the German borderand has been chosen as the new home for manylarge E-commerce distribution centers (such asAmazon etc). How has this impacted the overallbusiness as a Stettin based company?

Przemysław: In Stettin, we have around 400Scandinavian companies and 100 German companies.They launch their business here because we arecheaper and very close to terminals.

25

Interestingly, one of our partners in East Germanyinformed us that they get their delivery from Stettinand not the German Amazon. Amazon has startedto operate in lots of new areas, and wherever itgoes, it attracts lots of logistics companies. Our areahas grown rapidly, and the unemployment rate lastyear was only about 2% which is quite low. Ofcourse, the pandemic increased this percentage.But on the bright side, it might be a good time fornew companies to set up because previously theyhad everything except labour and now that won'tbe the case.

I believe that the area will get much business soon.We have many collaborations with e-commercecompanies in this area already. We conduct sea orroad logistics and customs clearance for them. Thebusiness with e-commerce companies is growingbetween 20-40% every year.

NSRN: We would like to shed light on afascinating aspect of your company. CSL isdeeply involved in community activities andresponsibilities. Would you like to tell us why doyou think it is important for businesses tosupport the activities of local communities?

Przemysław: The first floor of the oldslaughterhouse consists mainly of our offices,whereas the ground floor has a restaurant, a theatreand a concert hall. We have also established asouvenir store that sells books of local writers andbooks about our area. It also sells products by localdesigners. We are very proud of this initiative.

We always wanted to move differently than others.Therefore, when we were looking for a new spacefor our company, we discovered this area.

We could have easily invested in a new building, andthat would have cost us less, but when my mothernoticed the building, she felt drawn to it and decided tostart a business here. Last year we hosted about 244cultural activities, there was something new happeninghere almost every day! Most of these cultural activitiesconducted here are not charged, and everyone iswelcomed. For this reason, my mother received thehonorary ambassadorship of the city. These titles areusually given to famous artists, musicians, or writers,but no one from the business industry. My mother isthe first person from the field of business to receive thistitle.

Interestingly, when we transformed the building, eventhe surrounding area began to change. There was notmuch around here before, now there are newbuildings, with a few restaurants popping up. Athousand or so people spend their time here: it is a veryintegral part of our city now. Previously, this wholearea was closed, with no lights, no roads and nobuildings. But now, there is a thriving business withmany people spending time here.

Economically, it was not the most appropriate decisionto take because we invested a lot more, but the wholecity recognises us due to our contribution. Even someof our Scandinavian logistics partners told us that oncethey looked at our building, they realised that we werea unique company, and were excited to work with us.Surprisingly, we gained two contracts because of howour office looks.This has been one of our centralprojects, and now we are focused on the Dunikowoterminal. The CCIC intermodal terminal in Dunikowowill provide opportunities for different companiessince it will be an open terminal, and other logisticsclients can also grow with us. We have a very inclusivephilosophy when it comes to increasing business alongthe New Silk Road.

Published: 28th July, 2020

26

A g e m a r G l o b a l L o g i s t i c s

L e v e r a g e s I s t a n b u l ’ s

S t r a t e g i c P o s i t i o n A l o n g

t h e B R I

One of New Silk Road Network's (NSRN) foundingmembers, Agemar Global Logistics has been on asteady growth incline since their foundation in theyear 2002. In our latest interview with Mrs DenizAydincan, the Managing Director of Agemar, welearnt about the advantages of their strategiclocation in Istanbul, the challenges duringcoronavirus and finally their future goals.

A promising development planned for the comingyears, Agemar sees rail freight as a game-changerin the logistics sector. To learn more about thesedevelopments, we had a conversation with MrsAydincan.

NSRN: Agemar has a robust operation in Turkey,even though it was founded in the early 2000s. Itseems to us that the history of the company is filledwith many achievements taking place in a shortperiod. Would like to tell us more about the originsof the company and the course so far?

Deniz: I founded Agemar in 2002 with the mission ofproviding complete global logistics services andexceeding our customers' expectations throughdelivering quality and excellence in all aspects of ourbusiness. Our business has been developed mostly withmainland China because of Turkey' s import and exportvolumes. We were exporting block marble to China, andimporting semi-finished products, raw materials andthe other consumer goods from there.

27

Our volume was 550-600 TEUs of export and 200 ofTEUs import weekly. However, in the year 2016, welost the marble business and our volumes slightlydecreased. Soon after, we turned our focus toproject cargo and became a certified shippingagent in all Turkish ports.

We are members of several different networksincluding project and shipping etc. We have beenreceiving and sending two – three projectshipments (out of gauge and oversized) to/fromTurkey almost every week.

NSRN: Apart from your involvement withproject cargo, you also operate your ownwarehouses. Would you like to tell us a bit moreabout your local operations? How would you sayyou are positioned in the local market? Andwhat are the development plans for thecompany in the next few years?

Deniz: Our focus is mostly on project/heavy-liftshipments to/from Turkey. In terms of warehousemanagement, we have the capabilities of handlingand storing goods in our warehouse beforetransportation. This offers additional benefits tothe clients by saving them storage costs, time andextra packaging etc. We control two warehouses(bonded and non-bonded) in Istanbul, on both theAsian and European Side. Another bonus point isour close proximity to industrial areas and ports.Our plan for coming years is to become a completelogistics solution provider (3PL), and railwaystation controller in Turkey.

NSRN: Turkey has many thriving ports andhistorically has been the gateway between theEast and West. So, it is understandable that yourexpertise in ocean freight is substantial. Howhas the geographical location impacted yourmarket as a forwarder, and how important doyou think Turkey is to the Belt and RoadInitiative (BRI)?

Deniz: There are several well-equipped ports inTurkey which give us the opportunity of being thegateway between Asia, the Middle East andEurope, allowing us to connect continents.Historically, Istanbul has been central to theancient Silk Route by linking Asia and Europe.

Mersin is another significant gateway between theMiddle East and CIS countries, as it has an excellent railconnection. Advantages such as these allow us to be amajor player in the logistics sector by enabling us tocreate business across the continents. The recentdevelopment of the tunnel system under the Bosporusriver connects the two continents (Asia and Europe) bya rail, adding another route to the BRI.

We realised that road transport could not be the onlysystem from this area, also since the coronaviruspandemic we saw that many trucks were halted due tothe lockdown, causing traffic jams. That is why the railconnections are so much more necessary now. Anothercompany is building a warehouse in that area; we aretalking to more players to develop spaces for thedischarge of containers and storage of cargo. We hopeto launch the terminal at the end of 2022.

NSRN: Are there any challenges that you face whileconducting business along the BRI? At the moment,Turkey is well connected per road, air and sea, andsince the end of last year, per rail as well with theconnections via the middle corridor towards China.

28

However, rail connections have been seen bymany as unreliable and immature. How do yousee this? Is it a realistic or outdated view? Whatdo you think still needs to be improved?

Deniz: The main challenges in this beautifulgeographical location are monopolism,authoritarian state structure and bureaucraticdifficulties. These are significant roadblocks to growbusinesses. At the same time, the robust railwayconnection in this corridor reduces time ascompared to the seaway. Our view is that therailway is more reliable and feasible. Rail cantransport unique products that are central to manyindustries, in a shorter time and at lower costs. Areduction of transit time unburdens factories byreducing the use of stock and storage.

Governments need to support the importance and easeof using the railway systems by building new structuresof railway management with updated tariffs andflexible rules. Governmental support is always essentialacross countries. Otherwise, the sea freight will remainuncontestable.

NSRN: The coronavirus has been causing lots ofproblems across the world. Was there any impact onyour business? If so, how did you deal with it, andwhat did you learn from that experience?

Deniz: Yes, many adverse effects impacted us too. Weclosed our offices from March 17th till July 1st. In thisperiod, we arranged everything from home via theinternet and worked accordingly.

Due to the general situation, there was somedecline and delay in our work, but nothingunbeatable. Since we mostly focused on air freight,we maintained regular contact with our existingcustomers, and we did not lose them. Interestingly,we learnt that some departments could efficientlywork from home, giving us ideas to reduce costs.

For the next step, we will redesign our organizationwith this experience. Finally, we are also in the processof establishing a new company that will focusexclusively on rail operations. Of course, this will takesome time, but we are quite excited and determined totake our company to the next level.

Published: 28th July, 2020

29

A V a r i e d P o r t f o l i o o f a n

E x p a n s i v e C o m p a n y : A n

I n t e r v i e w W i t h R i e c k

H o l d i n g G m b H & C o . K G

New Silk Road Network's (NSRN) founding member,Rieck Holding GmbH & Co.KG is a well establishedand successful venture in the German logisticsmarket. With its broad reach across the globe, Rieckhas the capabilities and experience of manygenerations. In an interview with Mr GunnarMickeleit-Jung, we realized the various services thatRieck offers to its customers and the efforts it makesto sustain business relations with everyone.

Mr Mickeleit-Jung's dedication to promoting Rieckas a global logistics provider was evident with hisextensive knowledge of procedural functions ofeach of its departments. He shared how Rieckpursues to take over the whole supply chain of aproduct rather than, look after a specific segment ofit. Moreover, he shared how Rieck's growingbusiness with B2C sector helped during thecoronavirus pandemic.

In conversation with Mr Mickeleit-Jung…

NSRN: Rieck Holding is quite an establishedcompany, which has seen significant growth. In the2000s, Rieck Logistics Group was reorganized andthe Rieck Holding was founded. Rieck Holding isresponsible for driving the group forward especiallyfor most of the strategic decisions. We would like toknow the journey, since then days to now. What isthe focus of the company, and what are its futureexpectations?

Gunnar: We are a family-owned company, and rightnow, the third and fourth generation of the familymembers are shareholders and managing partners ofthe company. We initially started with road transport,and then in the 70s, we established contract logistics.

30

The daily business includes staying in contactwith all operations and sales departments. As amember of the Rieck Holding, I take on centraltasks such as leading and coordinating keyaccounts and special projects. Apart from tendermanagement, I am also responsible for customerprojects for the Group.

After that, we created Rieck's air and sea cargodepartment and Rieck disposal logistics. In the lastfew years, we have built new forwarding terminals,warehouses for fulfilment and also significantlyexpanded on the waste disposal logistics sector.

We achieved essential milestones through strategicinvestments, which extend across all ourdepartments. The expansion course was primarilyconcerned with opening up additional businessareas in new locations. To give you a complete idea,in the sea and air freight segment, we have openedadditional branches, have established a worldwidenetwork across the world and have also founded anown company in China. We have a strong focus onour customers and network partners. We have hadtremendous development and expansion asshareholders and founding members in manyinternational networks.

As Rieck was growing, we established consultingservices and an in-house IT department. These unitsform a part of our core competence now. Today wehave a successful and stable group of companies withindependent operative business units, controlled andsupported by the holding company with theshareholders. For the future, we are looking atdigitalisation, which is at the top of our agenda and willbring some revolutionary changes in our set up. We arepreparing ourselves for this.

NSRN: What does your day to day entail, and whatroles and responsibilities do you take over in Rieck?

Gunnar: I have worked for Rieck since 2004, so it hasbeen 16 years. I started in the sales department, andnow I am based in the headquarters in Berlin(Großbeeren).

We try to find customer potential to build the wholesupply chain. For example, we start from the productionunit in China, ship it to Europe in one of our warehousesand finish with the distribution in Europe. We also acquiretenders and try to find suitable customers for the serviceswe offer.

31

We have many customers who work with several ofRieck's business units which allows us tostrategically develop a relationship with them. Wehave a central contact person in these units who isresponsible for the functioning, both within theirgroup and in the daily work with network partners.This has made us a global partner integral tooperations for our customers abroad. Furthermore,we also develop and supervise special projectsbetween Asia and Europe. Through cooperationwith new network partners, we can developourselves continuously. For that reason, we are alsopart of NSRN, which is an exciting addition to ourportfolio.

NSRN: Rieck Holding primarily organisestrucking and warehousing for its customer base.

Your trucking base is strong in Germany and Europe,and with warehouses in Germany, Netherlands andCzech, your reach is expansive in the region. Whatother special services are offered, that wouldsignificantly help Chinese companies seeking toexport to Europe or vice versa?

Gunnar: Rieck has been working in the Chinese marketfor the past 30 years. In this time we also establishedour headquarters in Shanghai. We have extensive on-site services, are well networked and very flexible. Wealso see that there is a high demand for e-commercesolutions. In our Fulfillment Solutions division, we offerextensive and unique services for the online market,including product finishing (engraving, printing andmore), packaging highlights, returns check andrecycling, end-to-end order transparency and all thiswith a high level of in-house IT competence.

We receive many requests for goods from China forthe European market and vice versa. For Chinesecompanies, we know that they look for acombination of good service and price, and that issomething that we can provide. On the other hand,certain products are sold to Asia by German onlineretailers, and we provide the logistics basis forthem.

In the B2B market, we have special services inprocurement logistics, with the coordination oftransports throughout Europe.

This involves time window control, analysis andselection of appropriate consolidation points,packaging services, overseas transportation to Asia,customs clearance on both sides and JIT deliveries toproduction.

As a third example, I can mention waste disposallogistics. We operate a disposal terminal in Neuss(Dusseldorf) for all recyclable materials. From there,they are sent all over the world.

32

Not everyone has their own baling press, which is asuperior service, and we offer the possibility ofadding value in the production of bales ready forsale.

NSRN: New Silk Road Network has a focus ofdeveloping a robust network between SMEsalong the BRI. Because of a developing Hub andSpoke system in Europe, many truckingcompanies support these rail hubs. How do youthink your company leverages theseopportunities?

Gunnar: We do not primarily work with the Huband Spoke system for rail, but we do offer containertransport from China to Duisburg. We pick up thecontainers from the terminals and conduct thetransportation from the consignee or thewarehouse.

We see the increasing demand for rail, as it ischeaper than air freight and faster than sea freight.We do not use trucking systems for this much, butwe do sometimes move containers via rail fromDuisburg or Hamburg and so on.

Typically our clients want the containers in ourwarehouses(Hamburg, Berlin etc.), where we useexisting terminals where our containers can arrive.As of now, we see that infrastructure still needs todevelop a lot more for this.

NSRN: As the coronavirus pandemic continues indifferent parts of the world, Germany has nowbecome relatively stable. Were there anysignificant effects during the lockdown periodhere? How has the recovery been?

Gunnar: We are back to our normal functioningnow, and since we are lucky enough to have a mixof customers both B2B and B2C customers, wemanaged to have regular daily business andprevented a loss. Of course, this was mostly fortransport and contract logistics, but we facedproblems like other companies in the air freightbusiness.

In the airfreight sector there was a one-sideddecline in the number of orders. However, it waspossible to compensate this to some extent,primarily through an unexpectedly high demand forproducts such as masks or hygiene products fromthe medical sector.

However, it was possible to compensate this tosome extent, primarily through an unexpectedlyhigh demand for products such as masks or hygieneproducts from the medical sector. Due to our stableand broad customer base, we have seen minimalimpact during the lockdown on land transport andfulfilment. A few years ago, we decided to includeB2C as an addition to our B2B portfolio, whichhelped immensely. During the peak phase of thecorona lockdown, the orders and demand shiftedfrom air freight to other sectors, which provided anoverall sense of continuity and stability.

Now, we are slowing going towards normal in airfreight, but it is still a step by step movementtowards 'normal'. Many passenger planes are notflying yet, therefore the capacity and demand islimited . We do not know how long this willcontinue. As said before, we did have somecustomers with declining volumes, but there havebeen customers with increasing business, especiallythe B2C business. Overall, Rieck has sustainedthrough a diversified business model, and we lookforward to more upcoming developments in thefuture.

Published: 30th August, 2020

33

R a i l F r e i g h t S a v e s t h e D a y :

M E L L o g i s t i c s S h a r e T h e i r

E x p e r i e n c e D u r i n g t h e

C o r o n a v i r u s P a n d e m i c

Recently we spoke to Emrah Erkut, the ManagingDirector of MEL Logistics, one of New Silk RoadNetwork's (NSRN) founding members. Mr Erkut, adedicated and hardworking individual, who strivesto provide logistics solutions for CIS countries, theMiddle East and Central Asia. We learnt about theknowledge and experience required in operating inCentral Asia, as each country is fraught withcomplex bureaucratic processes.

Mr Erkut also shared his experience with solidifyingtheir rail freight unit during the coronaviruspandemic, which was welcomed as a silver lining.Finally, he also stressed on the various aspects ofrail freight that made it more stable and secure ascompared to other logistics options. Mr Erkut'slively and determined nature conveyed to us thathe received challenges, and emerged with the rightsolution in mind.

In conversation with Emrah Erkut…

NSRN: MEL Logistics is a relatively young company,and it is making its way as a key forwarding unit inTurkey and along the New Silk Road. What was themotivation to start MEL? And what are your futureexpectations from the company?

Emrah: MEL Logistics was established in May 2018. It isa new addition to our family's business group, whichwas founded in 1984. The idea to start MEL was to havean undoubtedly different set up from other companiesbecause we aimed to provide service to Central Asia,CIS countries and the Middle East. The other companiesin the group are mainly focused on European traffic andintercontinental sea freight and generally relating tothe Turkish sea base.

34

I turned one of my rooms at home into an actualfunctional office. I end up working on holidays too.We never give up on looking for alternativesolutions, that is what we do. We are a young andenergetic company, and the management hasselected the team with the same outlook. Becauseof this reason, my team and I work a lot.

The idea of the business group was to expand ourreach to other business areas, especially in theregions that I mentioned because there is a hugedemand for logistics. Though we may be young, wehave an experience of 21 years as a family-ownedbusiness group and have professionally managedour logistics business. During the coronaviruspandemic, we learnt quite a lot, and it had someinfluence on our plans, but we knew we had toadapt and change according to the situation. Eightyper cent of the logistics stopped, but it was also anexcellent opportunity to work with the railway. Wehad practised rail freight a bit before, but only onspecific routes like EU-Turkey or vice a versa whilemoving our equipment like swap bodies orcontainers. But the situation changed the coursefor our future as we had to use wagons, or hirecontainer wagons, and we decided to step up andbecome railway service providers.

In that period, we loaded more than 100 containerssuccessfully. Generally, we prefer to make long termplans, but unfortunately, the pandemic made it a littlecomplicated. Back then, we had to plan daily; at leastnow we can suit ourselves with monthly goals. Wehave been investing quite a lot in different kinds ofequipment such as 45 FT swap body equipment, whichis a significant advantage for us and our multimodaland intermodal services. We aim to be the bridgebetween Europe and Asia.

NSRN: What does your day to day look like? Whatare the roles and responsibilities that you overlook?

Emrah: I spend a long time in the office, and I think I am abit of a workaholic (laughs), my day never finishes. I worka minimum of 10 hours every day, and apart from this Ihave an office space in my home, a sort of real 'home-office'.

NSRN: As a trucking company, you have a stableconnection in Central Asia, what are the benefitsthat you offer in the region? Moreover, what kind ofchallenges do you see while functioning in thisgeographical area?

35

Emrah: We have a stable and robust connection inCentral Asia and the regions around. We aremapping a wide variety of solutions for all thedifferent needs that this region has.

Every country in the CIS region has different kindsof procedures. It needs lots of experience andknow-how to provide the exact solution which isspecific to the area. This is one of the biggestadvantages that we offer to our partners andclients. While working with the countries in thisregion, your job is not just to be the logisticsprovider. It starts with consulting from beginning tothe end, and even starting from the trading phasesometimes. The region is a bit complex, but that'swhat I like about it. We also have a significantadvantage as we are located in Turkey, whichconnects the two continents.

Turkey is a natural intercontinental hub, giving us costadvantages in managing cross trading etc. There aremany challenges in this region too. The main trouble isthe bureaucratic procedures for each of thesecountries. They all have different regulations, whichmeans that you need to have much experience andgood connection with partners in the areas to stayupdated. Moreover, it would help if you had practisedin his region before. We are one step forward in thisparticular region because we offer tailored solutions tothe varied needs of the customers there.

NSRN: You have gained profitable business with theloading of rail wagons in the past couple of months.This has also allowed you to create a strongfoundation for your operations in Turkey.

Can you tell us a little more about thesedevelopments?

Emrah: Railway has always been a part of ourbusiness.

As I mentioned earlier, it was usually between theEU and Turkey. Before the pandemic, it was only apart of our business. But when the lockdown beganand the borders closed, the regular logistics laneswere restricted, and it was an excellent opportunityand a ripe time to increase our rail activities.

We switched eighty per cent of our active shipmentsto the railway. This also allowed us to keep ourcustomers' trade flowing. Apart from the activeshipments, we also started receiving new ones byoffering railway services. We also invested in eighty40FT containers to bypass the shortage of wagonavailability. At one point, people had to wait for oneor one and a half months to avail a single wagon.Thankfully, we signed a fair contract with the TurkishNational railway company, a semi-governmentcompany that manages the railway system.

36

We started using their wagons and hiringcontainer wagons to move cargo within CentralAsia. We successfully managed to handle morethan 300 wagons in a couple of months. It was agood flow. When the pandemic started, our staffswitched to home-office mode, and all theseoperations were conducted with the staff workingfrom their respective homes. I am thankful tohave such an energetic team that is also sosupportive.

NSRN: The coronavirus pandemic had affectedbusinesses across the world, were there anyeffects felt by your company? How has therecovery been? Do you think post-pandemic,rail freight has emerged as a suitablealternative as compared to air and sea freight?

Emrah: It is very different for all of us because noone has ever seen such a situation, in bothpersonal and corporate spheres. This was new foreveryone, and we were a bit shocked with theclosing of the borders and the slowdown, as wedid not know what measures to take. So, the dayswere a bit tough in between.

When we began our operations with rail duringthe pandemic, we realized that the railway is oneof the most stable services which is not affectedeven when there are serious emergencies, such asthe coronavirus pandemic. The only effect thatwe noticed was the heavy traffic across the railroutes.

Even the Turkish National Railway told us that theyhad never seen so much traffic since 150 years of itsexistence (laughs). But this reality is a perfectopportunity for us to know that rail freight works well.We have also shown our partners and clients that thisis a stable service. Apart from being so steady, we havedemonstrated how cost-effective it has been. There issome specific cargo that is suitable for rail, such asbulky cargo. For example, we had 16.5m long pipesthat we usually moved to Azerbaijan, Iran and Iraqusing oversized trucks in the past. With the railway, wehave 17.5m long wagons, which carry these long pipeson standard tariff as compared to oversized landtransport, making a huge difference.

As we experience these advantages, we offer them toour clients. So far, we have served 30 per cent of ourclients this way, and within this period we continuewith our rail services. Honestly, we acted right whenthe pandemic began, which helped. Not all my friendsin the field leveraged this opportunity, and some sawlosses at a particular stage. Since we are part of afamily-owned business group, we have theirlongstanding experience too, which helped to drivethis decision. This decision also prevented our stafffrom incurring losses, and now they are back in theoffice with some extra measures and protocols inplace. The recovery has begun, and a part of thatrecovery has been railway. As I said, it was a small partof our business before, and now it has become one ofour core business with its own client portfolio. Yes, atthe time it was an emergency button, but now it is anopportunity to have a department for rail.

Published: 30th August, 2020

37

' T i m i n g i s K e y ' : L a n g o w s k i

L o g i s t i c s s h a r e s t h e i r

l e a r n i n g s o n b e c o m i n g

p i o n e e r s a l o n g t h e N e w

S i l k R o a d

To become a pioneer, one needs to have the righttiming, says Tomasz Langowski, Vice-President andCo-owner of Langowski Logistics. LangowskiLogistics, a founding member of New Silk RoadNetwork (NSRN), is celebrating its 16th anniversarythis month and on this special occasion we spoke toMr Langowski on various aspects concerning theNew Silk Road.

In our Polish newsletter edition this month, wetouched upon the high relevance of Poland alongthe New Silk Road, the challenges it faces, and theupcoming possibilities of growth. As a well regardedand popular company, Langowski Logistics haspioneered the rail freight business in Poland,especially developing business along the variousroutes of the Belt and Road Initiative. We discussedwith them their views on the current challenges ofconducting business in these regions, as well astheir company history and some trade secrets thathave made them what they are today: a company ofa solid reputation and strong connections.

In conversation with Tomasz Langowski...

NSRN: Langowski Logistics is a premier logisticscompany in Poland. Established in 2004 you havecreated a strong foothold for yourself in rail freightalong the New Silk Road. We would like to know thehistory of the company and the subsequentexpansion into rail freight.

Tomasz: We built the company with our mother fromscratch in the year 2004, the year when Poland alsojoined the European Union. This Wednesday,September 30, we will celebrate our 16th anniversary. Itwas just my mother and I at the time, but my motheralready had 20 years of experience in the logisticsbusiness. She worked in customs and is an experiencedcustoms agent. Earlier on in her career, she wasresponsible for the bonded warehouse of Baltona, afamous Polish company.

38

She then moved to another company where shebecame the manager of the customs agency, thena director. Finally, she created a freight forwardingcompany with two partners and looked after theircustoms agency. In 2001, I joined this company asa customs agent too. I was also doing some freightforwarding at the time, handling Volvo buses,which was some of my first freight forwardingactivities.

My brother, mother and I are all licensed customsagents, certified by the Polish government. In2004, we decided to create our own company andfamily business where we are responsible foreverything and made our own decisions. Wecontinued to focus on this division, and unlikeother freight forwarders,

We offer inhouse customs clearance services.Moreover, only a few companies have board memberswho are customs agents. The company started withtwo people, and now we are almost 200 in number. Inthe past 16 years, I can say that we have developedthis company well.

I had to learn everything from scratch as I wasstudying telecommunications and management, notlogistics.. Though our company began in a year thatwas significant for Poland, it was a difficult time forus. Our initial business idea was to offer customsclearance services. However when Poland joined theEuropean Union, we could not provide intra-European customs service as it was not needed anymore. That is why we needed to branch out and focuson freight forwarding as well.

We started with trucking and then added withocean freight to our company, beginning withimport which continues to be a big part of ourbusiness, coming to almost 80%. Another importantevent for Polish logistics, in general, was theopening of the Deepwater Container Terminal (DCT)in Gdansk in 2007, which could accept the largestcontainer vessels. When Maersk opened their directservice from China to Gdansk back in 2010, itunlocked avenues for us to approach newcustomers and make offers of faster transit time.

Moreover, what Langowski could offer especially wasa simplified customs clearance at Polish ports, wherethe customer does not need to pay the VAT since onlythe customs duties are charged, making it a muchcheaper affair in terms of better cash flow andcomparing to fiscal customs clearance in Hamburg.With this, we could go to any customer, even thosewho didn’t know us and receive cooperation fromthem. Approaching companies became a lot easier forus. This was introduced in 2008, and over the yearsthe access to simplified customs clearance hasbecome much easier.

39

Yet again it was the right timing for us, and theyapproached us asking to dispatch and devanningtheir LCL containers. Based on my experience, Ican tell you for sure that timing is crucial inbusiness to be the pioneers. That is also why wejoined the NSRN as a founding member.

In 2011, one of our Chinese agents visited Polandas they needed help with their customers. It was anexciting meeting because that time for ustravelling to China was utterly out of ourimagination. When our Chinese agent arrived, itwas a good learning experience for us too. Theyneeded help with their customers in Ukraine, whobooked a shipment from China to Ukraine via theOdessa Port. There was a problem because of thecongestion and… corruption at the port. Theyasked us to move the supply chain from Odessa tothe Polish seaports and then transport thecontainers onwards to the warehouses which werevery close to the Ukraine border or directly toUkraine.

This gave us a chance to develop our componentmore.Then in 2012, we made strategic connectionswith a Polish company that is situated close to theeastern border of Poland. That was when we first heardabout the trains from China.

We started our research, and in 2013, we partneredwith Far East Land Bridge (FELB), to work along theNew Silk Road. We were one of the first companies tooffer regular rail service from China to Europe. In thebeginning, we started with groupage wagons, asregular block trains only began in 2014. We alreadystarted in 2013, just when the OBOR was inaugurated!Later, when we were getting deeply involved with theplayers along the New Silk Road, we came across ZIH,Zhengzhou. At that time, they were also looking forpartners in Europe.

NSRN: Those in the logistics industry do not have atypical 9-5 job. What does your day-to-day look like?And what are your roles and responsibilities in thecompany?

Tomasz: In Poland, we have the 8-4 timings (laughs),but now that I have my mobile with me, I am workingmost of the times.

40

I am the vice president of the board, and I can saythat I play an essential part of the company. Sincewe are a family company, I am one of the ownersalong with my mother and brother. On the onehand, we are owners, but we also manage thecompany. We are making decisions on a daily basis.I cooperate very closely with our financial and legaldepartment. I am also responsible for businessdevelopment in the company.

One of the main fields right now is developing therail business along the New Silk Road. I manage therailway business but also look for opportunities togrow our other services such as warehousing. Mybrother on the other hand is responsible for militaryand project cargo. Last but not least, my job is alsoto represent the company and carry outnetworking.

NSRN: Poland is incredibly active along the NewSilk Road, but at the same time, the Polish routesare fraught with congestion, that cause muchdelay to cargo reaching on time. What are yourthoughts on how to tackle this situation, at aninfrastructure level and the level of forwardersdoing business along the route?

Tomasz: This is a good question. There are ofcourse many big players trying to work on thesituation, but since we are not that large, we don’thave too much influence on the case. Honestly, it isdifficult to explain to the customers why the transittime has increased, as they usually would have theircargo in two weeks at best. Our record was ninedays from Zhengzhou to Malaszewicze. It is anexcellent service, but I say this often that the NewSilk Road Service is a victim of its own success. Inthe beginning, we took a lot of time to explain toour customers that the service is safe, fast, andreliable. Nowadays, we do not have a problem tofind customers who are interested in rail services,and the demand is much bigger than the supply. Atthe same time, the infrastructure is not ready forsuch a huge demand. During the pandemic,especially from March, the demand was huge! 90%of the air freight cargo moved to the rail, and wealso noticed that many LCL shipments moved fromocean to rail.

The number of trains from China to Europe rose by 68%more in July 2020, as compared to the figures from July2019. Chinese borders with Kazakhstan, Russia andMongolia were severely congested, along with thePolish-Belarusian borders. Warehouses, ports and eventrucks were jammed. Moreover, companies did nothave enough workforce to deal with the rising volumes.We had to adjust to the situation, but still, the cargonumbers are enormous. The solution to improve thesituation is to implement more routes, via Breniewo orSiemianówka going to Hamburg or Duisburg. Alongwith PKP cargo, the government is developinginfrastructure and improve these passages.

Our state-owned rail operator is doing the best to avoidsituations where Poland is wholly avoided, that will notbe the right solution for us. Something like Slawkowwould be good. Slawkow is not close to the border;instead, it is more central. It is also great because thebroad gauge goes all the way. But of course, it can’thandle so much volume at the moment.

41

I also learnt that PKP is trying to run homogenoustrains instead of multigroup trains. This allows theincoming containers on Russian gauge wagons, tomove directly to the other train with standard railgauge without unloading in the terminal. It willenable direct transhipment of containers fromwagons, which helps reduce time and preventsbreaking the wagons composition.

NSRN: Your recent development of handlingmilitary cargo has carved a space for yourcompany in this niche market. What were themotivations to branch into military cargo, andwhat is the expertise required to operate in thisarea?

Tomasz: We are motivated to provide help whenhelp is needed. So, when our partner from the UKcontacted us with the request for exporting a tankand assistance with customs formalities, weoffered solutions right away. With our in-depthanalysis of the documents and excellent customsknowledge, we were able to provide him with therelevant support.

The news that we conducted such a cargomovement spread quickly on the market, and a fewmonths later, we started receiving more requests tohandle military shipments. One of the certificatesthat have great importance while handling militarycargo is an Internal Control System. This allowed usto take shipments from the third country toanother third country. We have also implementedISO 9001, which made it easier to acquire theInternal Control System. My brother is mainlyresponsible for developing this side of the business.

It helps to have a good reputation and a stablecompany. We used to be a private company, butnow we are a limited partnership company, whichhelps when dealing with our customers in themilitary business, because no one would like towork with a completely private company. Also, asan addition to military cargo, we would like toestablish project cargo because we have our ownwarehouse and equipment which can handle aheavy load.

NSRN: Langowski Logistics has often closelyworked with Chinese logistics companies, whichwould make you a great candidate to bust somemyths. What are the general misgivings that peoplehave when it comes to conducting business alongthe New Silk Road? At the same time, what shouldlogistic companies bear in mind while operating inthis area?

Tomasz: Based on my experience, the most importantaspect while working with a Chinese company is tobuild a good relationship. There is a word in Chinesecalled ‘Guanxi’, which is about having a mutualrelationship. My first trip to China was to meet with ZIHand to speak directly for cooperation. During the firstmeeting, I met most of the people of the topmanagement. There is a word in Chinese called‘Guanxi’, which is about having a mutual relationship.evel as yours and making a strong connection helps todevelop the business. . Finally, it helps that mycompany is already well known in China, which allowsus to do business. Every Chinese partner expects amutual win-win cooperation. Also, it pays to be honestwith your company’s capabilities. That is the wholesecret!

NSRN: Finally, as we hosted our first annual generalmeeting in Warsaw, what were your generalimpressions of the event?

Tomasz: I have attended many network meetings, aswe usually participate in all of them. But the biggestimpression for me was the staff and hosts of the NSRNteam. You are such young people, who are so welleducated and with already so much experience. Also,Ziwei is the right person in the right place to run thisnetwork – sometimes it’s hard for me to say if she ismore Chinese or more European (laughs).

Moreover, the network members are also different inNSRN. They are not just typical freight forwarders;these are companies with expertise in a variety ofsectors like trucking or warehousing. I am veryoptimistic about this network, and I keep my fingerscrossed that in the next AGM, we will have a chance tovisit China.

Published: 29th September, 2020

42

G h a n a ’ s i n t e r e s t i n t h e N e w

S i l k R o a d : F r e i g h t C o n s u l t

s h a r e s i t s g r o w i n g

i n t e r a c t i o n s w i t h C h i n a

Freight Consult Ghana Limited is New Silk RoadNetwork’s first member from Africa. In an interviewwith Mr Abdulai Pangasur, the Managing Director ofFreight Consult, our pre-conceived notions aboutdoing business with companies in Africa wereexonerated as we discovered the broad set ofpossibilities in expanding the New Silk Road in theregion.

Mr Pangasur had a broad and in-depth experienceof working in the field of logistics, starting as earlyas his school days when he worked in a warehouse,to owning his own business and establishing FreightConsult as a premier company in Ghana, WestAfrica. In our conversations, we touched upon thegrowth of his company, the lack of understandingAfrica’s business culture and the prospects of theNew Silk Road in Africa. He also shared news abouttheir upcoming ventures and the severe need fordigitalisation in the wake of the coronaviruspandemic.

In conversation with Mr Pangasur…

NSRN: Freight Consult was established in 2006, andsince then has established itself as a reliableforwarder offering cost-effective solutions.Moreover, the company has a strong network ofaffiliate offices in different countries, such as theUS, China, UK and Dubai. What has been the historyof the company and the formula behind itssuccessful growth?

Abdulai: As you rightly put it, Freight Consult has beenoperational since 2006. I had been a freelance agent inGhana long before that, starting as early as my schooldays. My schooling was done in Cape Coast, at the timemy father worked in security for a warehousingcompany in Accra. I used to join him there and workedas a loader in the warehouse.

43

This was critical for us because it allowed us todeliver within our own KPI. If we had to go to theclients all the time, asking for the payments ofvarious charges, then we wouldn’t have the controlof the KPI. Most of the industries that we workedwith, we told them that we would be able to deliverwithin record time.

I had finished my A levels then and was waiting tostart university. The boss over there noticed that Ihad a good education and encouraged me to takeup tallying for air cargo. Soon, I had finished my firstIATA certification and continued to work in thelogistics field, along with pursuing my universitystudies.

I got licensed as a customs broker in 2006 andstarted Freight Consult after receiving the licensefrom Ghana customs for in-house customs agents.Apart from our customs practices, we wished tobranch out services towards the corporate industryin Ghana. As we were only conducting forwardingfor the public in Ghana, I decided that it would befar more rewarding to target the corporate sector,specifically the mining industry. So, we picked up afew clients from the mining sector. One of thedriving factors to gain these customers was ourreliability.

They wanted to have a stress-free delivery to theirmining sites because there were issues with clearingand forwarding in Ghana. It used to be a bit morecumbersome then than it is now. Also, we adopteddigitalisation, so the processes have become farsmoother. We also worked with automobile companiesand pharmaceuticals as well. It was our motto to offer astress-free service to our customers.

Traditionally, in Ghana, forwarding agents would relyon their clients to pay upfront for their deliveries.However, when we started, we decided to partner withStanbic Bank in Ghana. We received a form of Escrowpayments facilities to embark on providing the totallogistics package for our clients. When we first went tothem to present our strategies, it was a little bit risky forthem to take it up, because one usually has to pay theduties on behalf of the clients, then you deliver thecargo to the client. Accordingly, you have to wait for theagreed terms to be paid.

They didn’t believe us at first (laughs), but then to do 48hours from sea-port or 24 hour delivery for air freightwas remarkable for our clients. The news of ourcapabilities caught up with most of our corporateclients.

44

Also, our continuous search for strong globalnetworks such as New Silk Road Network hashelped us. Our first network was the TIACA, based inFlorida. From there we also joined to IATA, FIATA,BPD International, and now we are also with NSRN!

We started our office in Baltimore, in the US back in2017. Now we realised that within the areas ofBaltimore, Virginia and Maryland, we have amassive concentration of African immigrants,especially from Ghana. What we wished to do wasstart the door to door service. We rented awarehouse, we also had packaging service, forpeople who wanted to send stuff back home toGhana. We also have a partner office with anassociate company in Dubai. In China, we havevarious partner offices in Shenzhen, Chengdu andGuangzhou.

NSRN: If you could only pick up to two aspects,what would you say is Freight Consults corecompetence area in terms of transport andcommodities?

Abdulai: Firstly, our ability to understand the coredemands of our customers, making sure that weput together the various aspects of our operationsto meet that demand. We try as much as possible tobe looked upon as a reliable Logistics partner inAfrica. The reason I say that is because we haveclients like the Chinese telecom giant Huawei. Weare their main agents not just in Ghana, but also inLiberia and Sierra Leone. This came about as aresult of our reliability. We have been working withthem since 2015, and I can confidently say that weare their only agents in Ghana right now.

We also do some inbound freight on their behalf,using our partner agents in China. I hope in futurewe can tap into the New Silk Road and get morebusiness from Huawei in China. So, I can say thatour core competence is primarily our reliability andour credibility. These are the two abilities that havegiven us a strong customer base.

NSRN: Naturally, news of the Belt and RoadInitiative must have caught your ears. How hasthe launch of this initiative influenced yourbusiness in any way?

What is the interest that African businesses have inworking along the New Silk Road? Are there anychallenges that you face when it comes to doingbusiness with China?

Abdulai: I was just talking about this the other day, andI said maybe the attention of the New Silk Road shouldnow move to Africa as well. Mostly in Africa, oureconomies are import driven. Today, I can say that 60-70% of the import volumes come from China. So, Chinais an essential partner to Africa and particularly forGhana.

Considering many instances in Project Cargo, you seethat most European contractors win the contracts evenwhen the project is in close proximity to Africa, insteadof a direct import to Africa from China. We see the linkhere, with the New Silk Road, to be able to handleproject logistics along this route as well. Even thoughthe Silk Road doesn’t enter Africa directly, we see thatkind of link. We think that we in Africa have placed atourselves at a level where we believe we can handlesome of the projects going from China to Europe.

45

Even though we are surrounded by countries that arefacing troubles, Ghana has been stable for a long time.We are the gateway to doing business in West Africa.Ghana is used as a springboard for business. Thissituation is primarily due to political instabilities andthe unstable economic condition caused by acutecorruption. So companies must take time to study thelocation and understand the unique characteristicsbefore conducting business. You must also see if thecompany is well gazetted or licensed, and how reliablethey are in terms of the delivery of services. We have arobust database in Ghana that helps us to verify suchdetails.

NSRN: What are the future developments takingplace in Freight Consult, and what are yourexpectations for the next few years, consideringhow the coronavirus pandemic has affected theworld of the supply chain?

Abdulai: We have a few developments taking place.First of all, we are starting a campaign to target the oiland gas industry. If you ask us about the coronavirusand the supply chain industry, we learnt that it is soimportant to rely on technological developments. Wehave set a program to launch a new product next yearcalled FC Xpress, a courier services app. We are goingto launch it next year and roll it across all the regions inGhana. As a result of the coronavirus, we have come upwith this product. We can still serve people withouthaving their physical presence. We can be called andasked to deliver cargo anywhere. We are targetinggeneral cargo, mainly. We are also trying to start FCXpress from Dubai and London. The service in Londonwill take the opportunity of the flight run by BritishAirways, every day of the week, as we have space intheir carrier. We don't want to do oversized packages,preferably small packages, such as medication etc. Theaverage delivery time for most service providers fromEngland to Ghana is 9 days, that’s the best time theycan offer. However, we guarantee 45-78 hours. We willprovide genuine express delivery as of 2021 and we arevery hopeful about our upcoming developments!

Published: 29th October, 2020

I think the interest for African businesses in the SilkRoad project is quite enormous. First is to createthe link for an inter Africa and Europe partnershipslooking at the Chinese markets. The business linksthat would be created as a result of the inter Europeand Africa relationships will be significantlyenhanced through this network. The challengeswhile doing business with China would mainly belinguistic differences. I think there is a need forChinese companies to know that every region hasits own linguistic capabilities.

Another problem is the time zone difference,sometimes people are unable to work withcompanies in Africa. We here need to understandthat the time zone differences with China. Finally,Africa and China need to understand each other’sbusiness cultures. I think this can be throughpartnerships with Chambers of Commerce at thegovernmental level, or maybe even culturalexchange programs.

NSRN: The African market is traditionallyconsidered as very challenging for many logisticscompanies outside. What do you think is the keyingredient in operating there? And what are yourrecommendations for companies who wish todevelop business towards the African continent?

Abdulai: When people talk about Africa, peopleneed to understand that Africa is very fragmentedand very vast. There are so many differentlanguages and different contexts. It is diverse interms of landscape, culture and traditions, beliefs,tastes and preferences. Due to these reasons,people need to first understand what part of thecontinent they are dealing with.

Start with knowing what language they speak, wehave Portuguese, French, English, Arab, and somany other languages. It is an enormous market,but still untapped—the only untapped market leftin the world, apart from some south Asiancountries. The central aspect is to understand thedynamics of each country that you are dealing with.When you come to Ghana, for instance, you mustknow that we are an English-speaking country witha stable democracy and economy. Our economy isdoing well, and it is an enabling environment forbusiness.

46

N a v i g a t i n g h i s t o r i c a l

m o m e n t s a n d p r e s e n t

c h a l l e n g e s : T I J F r e i g h t

S e r v i c e s o n t h e W T O e f f e c t

a n d C O V I D - 1 9

When China’s economy liberalised, it openedopportunities for private companies to venture intothe global sphere of logistics. At the time TIJ FreightServices Limited saw the booming potential of thelogistics industry in China and cemented theirfoundations. TIJ Freight Services, a foundingmember of New Silk Road Network could forecastthe future of logistics and be prepared to leveragethe incoming opportunities that the marketpresented.In our conversation, we were joined by Even Bao,the President of TIJ Freight Services and Jay Yu, theBusiness Development Manager of the company.Even and Jay share their experience of growing thecompany in the Port of Shanghai, which is one ofthe largest, busiest and highly competitive ports inthe world. Moreover, they discuss the nuances of alogistics business, the current situation caused bylack of container and space and finally, the future oflogistics database management.

Here is our conversation with this forward-looking,forward-thinking forwarding business…

NSRN: TIJ Freight Services is based in Shanghai,which is one of the largest and the busiest port inthe world. Your operations were established morethan a decade ago. What has been the journey foryour company that is based in such a competitiveport?

Jay: Our company was established in 1994, right afterthe opening up of the Chinese market and economicreforms. After China joined WTO in 2001, thegovernment began giving licenses to forwardingcompanies to do freight forwarding and tradingbusiness. At that point, we were one of the firstcompanies to acquire the license.

47

In that period, around 2001 or 2002, we decidedthat we can’t rely on easy work anymore. We hadto look for our own clients, by going overseas,meeting new people, and increased networking.Initially, I could only work with the logisticsdepartment that were part of the governmentcompanies.

At the time, many global companies also startedsetting up offices in China. This allowed us to workwith global companies and build our network. Sothat was the general time frame of our set up.Even:In 1994, the market was so young that people werenot aware of what logistics was, or what was therole of a forwarder. I finished my studies in Beijingand joined the American company SeaLand, whichwas eventually sold to Maersk. When I was workingwith SeaLand, when someone asked us what ourjobs were, we did not really know what to say(laughs).

For the job, I moved from Beijing to Shanghai. Atthat time, only government companies or licensedagents were allowed to trade and export withoverseas agents. SeaLand was doing very well, andI was learning a lot from this shipping company. Irealised that this could be a lucrative career as themarkets were opening up, and especially theShanghai ports.

This is what I guessed at that time, I worked for threeyears and got my license, after which I established thecompany. t was a young market then; peopleunderstood the process very differently. For example,suppose you receive the container, in that case, thepaperwork involved faxing the details to the shippingcompany. It was straightforward (laughs) and theshipping company gave you a 4.25% commission. Thisis how TIJ started. We had a considerable bookingvolume then, we did not have to overthink, because theclients were knocking our doors every day and askingfor help.

We started simple and were learning a lot then. The WTObrought in more companies, and there was a tremendousincrease in trading. At the time the shipping companiesdecided that their business was profitable, so they wouldreduce the booking fee to half, which eventually becamezero! How were we to make any margin then?

I could only do exports with them; otherwise, it wasillegal. I could see how much profit there was at thetime because the government had massive projectsand were doing very well. Up till China’s entrance inWTO, we got half the license and established thecompany right after.

48

I started travelling all over the world, beginningwith the US & Euro market. Our clients needed astrong player in China, and we would be thatplayer. There is a lot of thought we put into whatkind of clients that we wanted to make our basewith. Since China is a prominent retailer market,we started to develop this, as we continued tomaintain our projects business.So, for us, it wasabout connecting the supply chain teams, those ofours and our clients.We must understand whatthey require and organise the supply chain forthem and help them solve each part of theproblem. I honestly prefer to do business withlarger companies, because they allow for a long-term relationship. We like to work with companiesin China too. We are not just freight forwarders, butwe are looking at the whole logistical system.

In China, we have the mega data as well, whosesignificance we realised years ago. We are workingvery closely with Shanghai ports, having meetingswith them and looking at cooperations to helpclients manage their data.

NSRN: Forwarding is considered as one of themost demanding jobs. Usually, forwarders arejuggling multiple tasks at once. What are yourroles and responsibilities in the company, andwhat does your regular day look like?

Jay: Well, the freight forwarding business is verydetailed and requires one to multitask. We study andgrow our key accounts. We focus on professional andflexible solutions to their problems. Instead of lookingat just the business from the general market, we try tofocus on our direct clients

Even: As the president, my job involves balancingeverything, including looking after the key clients,getting information from the market andcommunicating with all the teams and finally makesure that everyone working here is happy!

Ya! Every day is quite busy for us! I usually end upspending quite some time now with the shippingcompanies due to the lack of space, and then we haveto push the clients to give the earliest dates so that wecan arrange from our side as possible.

Jay: It’s a lot of troubleshooting all the time, especiallythis year!

NSRN: Aside from sea freight, TIJ also offers acomprehensive set of services. As an all-roundservice provider, what would you consider as thecore strengths of your business? What are your keymarkets, and how have you developed in them?

49

Jay: We provide timely and accurate services to ourcustomers. We update our targets all the time toremain competitive and professional. Depending onour knowledge pool and our upgrading capabilities,we offer unique solutions to our valuable clients.Our core strength is that we can customise ourservices based on the requirements of each of ourclient. We try to know the key points andcharacteristics of our clients, which we use to helpthem and fulfil their needs.We make sure weguarantee the safety and the fastest possibledelivery of the goods. Recently, we have beenfocusing on the database business. Since 2016, wehave been involved in this field too. We are notselling database to companies, instead, we arelooking after the databases of logistics companiesby sorting and maintaining them.

NSRN: There has been a lot of frustrationrecently due to the acute container and spaceshortage, causing forwarders to take drasticmeasures in many cases. How has this impactedTIJ’s business? How do you see the situationunfolding and developing in the coming months?

Jay: This is the problem in our industry right now.The pandemic caused the ports to close, in turndelaying shipping during that period. As the holidayseason is coming, we are all busy trying to shipproducts over. However, because of Covid-19, someof the countries are still not entirely functional. Forexample, India, which is a big market and exportingcountry, has still not managed to return to fullcapacity. As of now, China is the most stablecountry in terms of controlling the pandemic. It’s alittle of this and a little of that, that has created thisimbalance.

Right now, the situation looks complicated. Wethink that till the Chinese New Year, it will remainthe same. But of course, this problem is not local tojust China, it’s happening in Vietnam and otherparts of South-East Asia too. This situation ischallenging, we have to push our clients to give usthe earliest forecast, and using the estimates wemake the bookings. Thankfully we have goodrelationships with the vessels and shippingcompanies. So when we give them the number,they trust that we can fill it.

As mentioned, we work with databases, which we useto help the client who gives us the focus, by givingthem alternate solutions and prioritising theirconcerns. So we need to maintain the balance onboth ends, with our clients and with the shippers.That can be a bit daunting sometimes.

NSRN: With the current trend of instability, whatwould you suggest should be the measures to takewhile tackling so much inconsistency and to retaincustomers in these times?

Even: The unique thing in China is that logisticscompanies here help each other very regularly.Sometimes we exchange the space internally as perour needs. Chinese companies are usually supportingeach other to overcome situations amongstourselves. This is one of the most significantdifference as compared to other countries. It isimperative to support your peers and your industry,especially in times of crisis.

Published: 25th November, 2020

50

G e a r i n g u p f o r B r e x i t :

O t e n t i c C u s t o m s s h a r e s i t s

t h o u g h t s o n t h e c o m i n g

c h a n g e s

As the Brexit slowly approaches, Otentic Customs, afounding member of New Silk Road Network, isgearing up for some major changes. In aconversation with Bas Verschuren, the generalmanager Customs, we learnt about the effects ofthis geopolitical decision that will change the livesof many, especially those in logistics doing businesswith the United Kingdom.

Apart from changes that await, Mr. Verschuren alsoelaborated on the role of customs agencies in alogistical supply chain, and the importance ofconducting business with AEO certified units. On anupbeat note, when asked in the end what is thehighlight of their company, Mr Verschurenenthusiastically adds, ‘we are really nice people’! Aquality that is usually underplayed in the cut-throatworld of business, Otentic Customs is truly setapart from others due to their empathetic ability tounderstand the needs of their customers.

In conversation with Bas Verschuren…

NSRN: Otentic Customs began its operations in 2009,and since then has seen significant growth as acustoms agency in the Netherlands. How would youdescribe the journey? And what were the keymoments for the company?

Bas: To be honest, the company is much older as wewere a part of a larger group of companies called thePeterson Group. They are pretty big in offshore,inspection and control of bulk materials. We were astrange company for them since what we basically didwhen we started was just unloading containers,something like stevedoring. We unloaded thecontainers with 4 persons, which took us a couple ofhours. In contrast, they did inspections of a vessel with20,000 tons with one person. So, Peterson never reallyunderstood what we did.

51

NSRN: Customs agents are usually required toknow vast amounts of information when itcomes to importing and exporting goods.

One of the managers of our firm then looked for apartner to take over the company, and togetherthey bought the company in 2009, in the middle ofthe economic crisis. When they bought thecompany, the first thing they ensured was to keepall the staff on board, helping the company toretain all the knowledge. None of the customersleft, so our business was viable. As we started, wewere called Otentic Logistics and besides providingthird party logistics services we also offered customservices. Then we saw that there were some risksassociated with customs clearance, as we declaredon behalf of the customer, making us a part of thetransaction as well. Due to this, the managingdirectors decided that they needed separatecompanies and that was when Otentic Customswas founded, with just two people.

The first thing we needed was the AuthorizedEconomic Operator (AEO) certification. After wereceived that we started to acquire customers.

New customers led to new staff, which gave us thepossibility to look for more new customers, and thecycle continued. We do not want the workload to get sohigh that there is an impact on quality. We have varioustypes of customers, for example, we have logisticsproviders that need customs brokers. We also havecompanies that produce their own products. We clearall kinds of materials from shoes to bicycle tires etc.

In 2015, we started focusing on the commercial side ofthe business. It required us to change the way weworked; we became more active in acquiring newcustomers. Our most significant base is the Germanmarket, approximating to 60%. In 2019, we had our 10-year celebration with a big bash (laughs). This year wewere audited again by the Dutch customs for all ourDutch permits. We underwent a 5 month long butsmooth process with the Dutch customs with hardlyany hiccups. Afterwards, they renewed all permits, andwe gained a new AEO permit.

What are the duties and responsibilities of a customsagent in a logistical process? What are your mainresponsibilities at Otentic Customs?

Bas: I am the Manager of Otentic Customs; basically,my job is to make sure that my six customs brokers caneasily do their jobs.

52

They do not have to worry about anything, they justmust make the customs declaration, that is whatthey are good at. I manage the departments, and Iam also responsible for the commercial side as well.I represent our department in the managementteam. Moreover, I am responsible for the qualityand environment of the company.

The primary job of a customs broker, of course, is toissue customs declarations. Moreover, our customsbrokers are thorough with their foundationalinformation, which helps them to acquire new dataeasily. They know the customs codes for manycountries or where to find information in theregulations. Apart from just entering data into thesystem, what they need to do is check anycorresponding information in the forms, such as ifthe HS code is applicable or not. What is importantis that a customs broker must never be in the way ofa logistical process but must also comply tolegislation. We are in the flow yet remain asunnoticed as possible. If our customers know thatwe are there, it probably means that there is ahiccup or delay, which is not what we want. If thereis a hiccup, we get in touch with Dutch customs,because they are responsible for customs checks,document checks etc. most situations are createdthere. Since we have been in the business for a longtime, we have several contacts there who can helpus out.

NSRN: There usually tends to be some amount ofgeopolitical influence on the functioning ofcustoms between borders. For example, fromJanuary 2021, the transition period for Brexitwill end, and business will have to adaptaccordingly. What are you doing to prepare forthis situation?

Bas: Well, where do I start… We started ourpreparations for Brexit in 2019 already. We knowthat this is a unique situation, one that we havenever seen in the EU. We began collectinginformation from the Dutch government and ourbranch association. However, at that point, therewere too many things unclear. We started gettingmore information during the end of 2019, entering2020, yet still there are many uncertainties.

This is because the government agencies arethemselves not sure what is going to happen now. Whatwe can be sure of is that a customs declaration will berequired for import and export. Since between the EUcountries there were never any customs checks, we canexpect some new regimes. EU countries might mirrorthird country checks without any trade agreements.This means that the assessments administered for anyother country, like China, Paraguay etc. will beapplicable for the UK. The first three months are goingto get messy. The companies that only have beensending products to the UK are utterly unfamiliar withcustoms procedures. They are asking us questions likewhat HS codes or Incoterms are, so these companiesare relatively unaware of these aspects. This wouldresult in the slowing of the logistics flow, because if thecustoms declarations are not in place, then thematerial cannot be shipped to and from UK, resulting intruckers just standing there without any cargo to move.

I think it will be very challenging, at least for the firstthree months. I am not sure if people or businesseswould have known the consequences, they would havevoted to leave.

53

The UK is not self-supporting, even in terms of foodproduction. At the same time, it is more business forus, but it will not be smooth, at least initially. Theseare the kind of hurdles that we generally tend toavoid because for us making the declaration quicklyis the goal. But without any proper guidelines inplace, it would affect the business. Since we areresponsible for the information in the customsdeclaration, you need to have the knowledge tomake the documents correctly.

We got in touch with our customers at the beginningof 2019 and asked them if they had traffic with theUK. At the time we hardly got any response, untilSeptember 2020. That is when people startedrealizing that this is happening, and we need asolution. It is hard, especially since we have beenworking on a solution for more than a year, yetsome customers only realizes now the need toadjust. So sometimes, we must be straight andinform them that a quick fix at this point will not bepossible anymore. Brexit is causing us to have manyhard conversations.

NSRN: Another very curious aspect of customsagency is the maintenance and acquisition ofdifferent certifications. What measures must acompany like Otentic take to maintain highstandards?

Bas: The most essential part is the AEOCertification, if you do not have that, then you arenot a reliable partner to Dutch Customs. Once thecustoms departments see our AEO certification,they understand that we are reliable, and that givesus some perks. They also allow you to be a part ofthe customs check chain, making it much easier forthe customers.

This gives us opportunities, but at the same time, alot of responsibility. You need qualified staff withproper training. You need processes and proceduresthat are foolproof. Moreover, you need strongconnections with Dutch Customs, if there is anytrouble, you should be able to contact the rightperson in the department to help you sort thematter. Otherwise, they can be very cut and dry.Knowledge in our business is everything.

NSRN: Otentic, apart from customs, also conductswarehousing for their customers. What are thedifferent services that your company offers, thathelp you carve a niche for yourself in this highlycompetitive industry?

Bas: There are lots of logistics companies that providewarehousing. But, from the beginning, our warehouseonly targets a niche market. We built a new warehousein 2016, we had 10,000 sqm before then which wedoubled in 2016—our warehouse stores raw materialsfor food, feed, and chemicals. We also havecertification to store these specific types of cargo. Iunderstand it looks like a strange combination(laughs).

But you see a lot of traders that transport rawmaterials for food products, also have dangerousmaterials in their portfolios. For example, citric acidused in soft drinks is also a hazardous substance. 90%of their business is food and feed, but 10% is usuallychemicals. There is a lot of overlap infrastructurally tohandle these materials, but you will never see thesematerials stored in the same place. All are stored indifferent compartments of the warehouse.

We want to stay in this niche because people willalways need food, so there will always be a foodindustry that will require raw material. The recipientsfor the goods we store are companies who producefoodstuff, but also animal food companies. Thesecompanies are mostly situated in Germany, France orthe Netherlands. Germany is a big market for us, forsure. In terms of the New Silk Road, we are basicallylooking for a Chinese partner that is doing import toEurope, so we want to be able to do customsdeclarations for their customers.

Finally, what separates us from other companies is oursize and culture. We are structurally flat, and that givesus the ability to act swiftly and make the necessarydecisions without the bureaucratic procedures whichslows down processes. This is essential in today’s fast-moving world of logistics.

Published: 26th November, 2020

54

A c e n t u r y o f p r o g r e s s :

C o n t a i n e r S e r v i c e

F r i e d r i c h T i e m a n n s h a r e s

i t s p a s t , p r e s e n t a n d

f u t u r e

The port of Bremerhaven is the fourth-largest portin Europe, and dearly significant to Germany. Thismonth New Silk Road Network had the opportunityto visit our member Container Service FriedrichTiemann & Sohn GmbH & Co. KG, in theirBremerhaven headquarters. There we met with DrIngo Starke, the Managing Director of the company,who took us on a tour of their warehouses andcontainer depot, where we learnt extraordinarythings and witnessed the personnel in action.

In the windy city, with the backdrop of colourfulcontainers, we also had the opportunity to have anengaging conversation with Dr Starke. We spokeabout the various aspects of a Container Servicecompany, their essential role in the supply chainand finally, the impact caused by the changes in theautomotive industry and the development of 3Dprinting technology. With a sharp eye on thechanging times, Container Service FriedrichTiemann is a testament to lasting stability andreliability, in the face of a fast-moving world.

In conversation with Dr Ingo Starke…

NSRN: The Friedrich Tiemann Group has anextensive history spanning over a century. Can wehave a quick history lesson for our readers, startingfrom 1905 when the stevedoring business wasestablished?

Ingo: Well, stevedoring is a traditional logistics job,which involves loading and unloading of cargo onconventional ships. You need special personnel to fixthe load inside the ship, and similar personnel at thereceiving port to unload the cargo. In 1905, there wereno containers; instead, there were lots of woodenboxes, yes, it was literally breakbulk! At the time, inBremen, there were about 60 stevedoring companies,and now only three companies offer this service.

55

After the invention of the container, and the arrivalof the first container ship in Bremen in 1966, thecontainer became the norm because of which thestevedoring companies began to fade away.Stevedoring is now only used for oversized cargothat does not fit in containers such as large pieces ofmachinery, pipelines, or wood. This was the onlyservice we offered till the 1970s. Thereafter, webegan to create services around the container. Ourbusiness is primarily focused on exports fromGermany which has been a profitable business, butnow we know that we must expand into import aswell. One of the reasons for joining the New SilkRoad Network was to improve our import footprintand to meet those companies that wish to import toEurope.

Bremen and Bremerhaven are central sites for us. Wereceive a lot of cargo in Bremen, which makes it anexcellent place for consolidation. The location inBremen is situated in the industrial harbour and inshort distance to the German container terminals inHamburg, Bremerhaven and Wilhelmshaven. Due tothe wide range of service that we offer, we require awarehouse area and a lot of open space for containerhandling. This space was acquired over time, and ithas been almost 4-5 years since we finished our lastexpansion. Our site in Bremen is wholly developednow.

The site in Bremerhaven began its development in1983 with 20,000 sqm. It is decently sized now as webought this area slice by slice.

The area grew up to 180,000 sqm. Over the last 15years, we invested in modern warehouses of 15,000sqm space and lifting capacity of 40 tons.

NSRN: From our previous conversations, I amaware that you were not always involved withthe logistics business. How did you come acrossthe opportunity to work at Friedrich Tiemann?How has your diverse background helped withyour duties and responsibilities?

Ingo: I was an officer in the German Air Force(Bundeswehr), and all officers are usually assigned tospecific departments in the forces. After graduatingfrom university I received additional education inmilitary logistics and joined that department. In 2011,I was in Hamburg to attend the general staff courseafter which I decided to leave the forces after aservice of 15 years.

56

This means that we store empty containers forshipping companies, we usually have a buffer stockas well to secure the availability of containers.Once we receive these containers, we check themto detect and repair damages.

Mind you, military logistics is entirely different, itinvolved a lot of military exercises. The mainquestions were, how do we move the troops, howdo we acquire fuel for the aircraft, and how tomanage capacity. Interestingly, in the military,money was never a relevant factor to conductlogistics, but in general logistics, every service hasa price.

After leaving the forces, my wife and I decided tostay in Northern Germany. While looking for work,a head-hunting company contacted me and toldme about Friedrich Tiemann. When I met DrJuergen Tiemann - the grandchild of the founderFriedrich Tiemann - we decided that it would benice to work together. In the beginning, I was notpart of the management board, but after twoyears, I became the managing director.

Friedrich Tiemann is a group of six operationalcompanies functioning together, and I became themanaging director for four out of these six companies,so I have three other colleagues as managing directors.In each company, we have two managing directors. Iam responsible for business development and our keyclients. My main task is to look after export packagingand container freight stations in Bremen andBremerhaven. Due to the size of the company, I amusually in close contact with all people.

NSRN: What are the functions of a container servicecompany in the logistics industry? What are theunique facets of your company that your clientsbenefit from?

Ingo: The most important aspect is our containerdepot, where we have a large number of emptycontainers.

For example, a car must fulfil security standards, thesame holds for containers. It is our job to maintain thestructural integrity of containers and bring them up tostandards. We also repair special equipment such asreefer containers, open-top containers and even flatracks.

57

One cannot see the container alone, it must beacknowledged in the context of the supply chain.We bridge the connection between land and seatransport. We receive trucks with cargo, which areunloaded then stored in our warehouse for a shortperiod. At a certain point of time, we get the nod toload the container and then transport it to the port.There ends our small part of the supply chain.Similarly, for import business, we receive the orderto the pick up loaded containers from the incomingship, which is then unloaded in our warehouse andstored till trucks come to pick it up.

Though small, it is very crucial, because it formsthat essential connection between land and seatransport. In terms of our packaging department,we are responsible for securing the cargo with therelevant packaging and handling it in our freightstation. What sets up apart from many packagingcompanies is our ability to handle also a largeramount of containers.

We combine packaging and container business,instead of separating in different stages. We alsoproduce classic wooden boxes, but most are doneon container-sized wooden skids. We also haveempty containers available, which helps us create adirect connection between packaging, stuffing, andthe depot. Our customers have the advantage ofavailing containers from us and not stress aboutsending containers. Our packaging and containerdepartment work closely together.

We also have a small container trading department.Many times, some clients do not wish to use theshipper’s containers as they would have to returnafter use in about 6-7 days. They would like to keepthem for longer and use them for other purposes. Alot of industrial projects that go to Africa and Asia,where there are no warehouses or infrastructure,the container is used there for weeks and weeks forstorage. The significant advantage for our tradingdepartment is that we have a lot of partners all overthe world, so if our customer uses the container inAfrica for a project and wishes to sell it, we helpthem with it.

NSRN: The second wave of coronavirus in takingplace in Europe now, and noticeably companieshave learnt many lessons after the first wave back inMarch. What was the situation that Tiemann facedduring the first wave of the coronavirus pandemic,and what were the measures you have taken torecover and prevent any unforeseen trouble?

Ingo: That really depends on our customers. We have alot of customers from the automotive industry. Duringthe first wave, mainly for export business, it went reallywell. But for our customers who produced largemachines, we had to store a lot of their cargo, becausethe Chinese partners could not receive their shipment.There is usually a gap between the purchase anddelivery of large machinery, due to the production time.

58

In the first wave, we were doing the work onprojects which were contracted six months ago.Now we see, especially for customers whomanufacture large machines that production hasreduced since the demand in China and the US hassignificantly declined. This will go on in the year2021 too, we think the recovery will only take placein 2022. You must know that prices for containersare very flexible, it is a spot market. It is a questionof how many containers are needed and are theyavailable on the market. At the moment our depot is80% full, that is normal. It is baffling how we areunable to predict the current situation in terms ofthe availability of containers. In the first phase ofCovid.19, there was a lack of containers as theharbours in China were not functioning. Threemonths later, it was the other way around. Theshipping companies are trying to balance it out, butthey avoid transporting empty containers. Besides,the trade is not balanced between China andEurope, which causes a shortage too.

NSRN: For a company like Tiemann, one canindeed say that they have stood the test of time.What are the plans for the company in thecoming few years? Are there any upcomingprospects that you are already exploring?

Ingo: The first step is to acquire the cargo to fill ourwarehouses and our containers. As of now, we aredoing our homework with ongoing digitalisationbecause we know we must become better and moreefficient in handling our data. We need to focus onhow to improve the exchange of data with ourcustomers and how to incorporate smart devices, toreduce workload and save costs. Large machineryand warehouses can take up capital, therefore, toreduce those costs, we are relying on digitalisingour processes.

Our expansion into import is not necessarily becauseof Covid-19, there is an overall change that is takingplace in the automotive industry and other branches.The automotive industry is robust, but they are notadapting to developments fast enough. Many cars andtheir spare parts are manufactured in Germany, whichis then transported to assembly units in China, NorthAmerica, and Africa. With the development of electriccars, the requirement for parts will drastically reduce,more high tech products will be produced in Asia andneed to be transported to Europe and distributed.

Twenty years ago, technology and large steelcomponents were exported from Germany. The steelparts now come from China or India, and only the techgoes from Germany. However, this reduced ourvolume and tonnage, which is relevant for us. Now, weonly have expensive high-tech parts to transport,which does not take lots of volume but have highhandling risks and packaging demands. Finally,another development is of the 3D printer, which willallow you to produce your own parts. Once you candevelop your own parts, the need to transport parts todifferent places of the world will decrease, but ofcourse, this still has not reached an industrial scale.These are some developments that we are keeping aneye on while considering the expansion of ourbusiness.

Published: 25th November, 2020

59

O c e a n B r i g h t P a v e s t h e

W a y T h r o u g h S e a a n d R a i l

As the end of the year approaches, we had theopportunity to speak with New Silk Road Network’smember Ocean Bright Logistics. Pioneers in seafreight, and steadily establishing a firm footing inrail freight, Ocean Bright has more than a decade ofexperience in servicing their local and globalcustomers.

In our conversation, we had the opportunity tospeak with David Ma, CEO of Ocean Bright. Weexplored various topics from the company'sfounding in Shanghai to the current situationcaused by lack of space and equipment and thecompany's future developments. Moreover, we lookinto the company's latest offerings in block trainservices, that has been running since November.Finally, at the end of the interview, David stresseson a significant thought that underlines theimportance of working together as a single unitalong the New Silk Road by sharing resources andsupporting each other in the network.

In conversation with David…

NSRN: We would like to know more about the originof the company. After its establishment in 2005,what were some of the significant milestones for thecompany? What would you say you are currentlyknown for in the market?

David: The company was established on the 8th ofMarch in 2005, which is actually International Women'sDay. It is definitely a good day! (laughs). In 2009, wemarked a significant milestone after we got the NVOCClicense. We became a booking agent for variousshipping lines in China, after which we startedcooperating with many overseas partners. We werenominated as a logistics supplier in China.

60

By 2011 our service extended from Shanghai toNingbo, Shenzhen, Qingdao, Wuhan, Chongqing,Dalian and other important cities. We coveredservices from the coast to the Yangtze River. In2014, we extended our sea freight business andstarted international air freight and intermodaltransport, trucking and third-party logistics. In2017, we got the opportunity to begin our railwaybusiness with a boost from the Belt and RoadInitiative. We have specialised personnel in therailway business, who know how to provide ourcustomers with the best service. So we have gaineda lot of trust from customers in China and abroad.

Since block trains connects China and Europe, itimproved the efficiency of logistics, which was oneof the main reasons we entered into the block trainbusiness. Our connection is usually from Chongqingto Duisburg. From Duisburg, it continues to WesternEurope, for example, Ireland, UK, the Netherlandsetc. After that, we entered into the Polish market,and today, we have our own console business, andwe are preparing console boxes. From China toPoland, we are using Xi'an at the departuredestination. In the beginning, we used to have onlyone departure each week, but now we have threedepartures per week. There are various services weare offering now for the railway business.

The coronavirus had caused a lot of trouble forbusiness and people all over the world. In logistics,there was a lot of vessel delays, equipment andspace issues. There were many troubles that keptarising, but the railway played a more critical role.Of course, rail freight's capacity cannot becompared to sea freight. Still, we can see it multiplyas it attracts more business from differentindustries.

In 2019, we developed the e-commerce servicewhere we provide dedicated courier servicebetween China and Europe, for B2B and B2Cbusiness. For this, we designed our own productsand try to establish relationships with platformssuch as Ali Express and Wish. We also work withother smaller businesses that wish to create theirmarket in Europe.

Finally, the most remarkable milestone for us this yearis that we are now the exclusive agent for Boludashipping line in China, one of the leading shipping lines.We enhanced our connection from China to Spain, andfurther to West Africa. So we have developed ourcompany every day by taking concrete steps.

NSRN: Can you tell us a bit about your background?What did you mainly do before starting OceanBright, and what was the motivation to start OceanBright?

David: I graduated from the Shanghai Institute ofForeign Trade, and my major was in international trade.After I graduated, my first job was international trade,in a vast state-owned company. It was a comfortablelife, going to work at 9 and getting done at 5. But since Ihad just come out of university, I thought it was still tooearly to enjoy life like this, so I decided that I needed totry something different.

61

When the international logistics business was justtaking off in China, I joined NYK (Nippon Yusen), aJapanese shipping company. This company doesnot exist any more because it was merged withMitsui OSK Lines/Kawaski Line as ONE now. Iworked there from operations to customer serviceto sales. I found the logistics business veryinteresting, so I thought why not make it morechallenging. You know it is not easy to build up yourown shipping company, because you need amassive investment (laughs). So I was thought, whynot become a freight forwarder. First, I joined alocal company, and then realised that the job isfascinating. It was so different from the shippingline, every day, a new challenge appeared, and youneeded a strong and big heart to take up thesechallenges.

So I changed my mentality from shipping lineworker to a freight forwarder. I realised how much Ilearnt in this business and wanted to extend mycapabilities. The next step I took was in 2005, whenI established my own company.

I started off only handling the local customers, andsteadily gaining connections with overseas partners,so it was constructed step-by-step. The freightforwarding business is very challenging, and youcannot predict it. This keeps the job very interesting,and this is the motivation behind running thisbusiness. Besides, Shanghai is a dynamic andcompetitive city, which keeps pushing us to achievethe best. I was born in Shanghai, I studied, married,and worked in Shanghai. Everything has happened tome in this city! (laughs). The opportunities here areunlimited! I can do rail, sea and land here but theimportant part is concentrating on every step. Ourmotto is to work with passion, and we continue to dothat every day. Currently, we have three offices inChina, one in Shanghai, the other in Ningbo and thelast in Yiwu. Soon, we will open an office in Xi'an sinceour railway business is growing. We think good serviceis the root to make our customers happy.

NSRN: Ocean Bright's expertise mainly lies in seafreight and rail freight. What do you think are yourcore competence when it comes to forwarding viasea and rail? Moreover, what kinds of cargo are youinvolved with? And finally, what unique servicescan you offer the customers?

David: Sea freight is our strong point, and we workwith various shipping lines. We have good connectionswith them. With China's situation, our long-termcooperation with the shipping line has allowed us toget the protection and receive the expertise. In regulartimes, you will not see the advantages, but when timesare unique, you will see the power of your connectionsthat you have sustained over the years.

In the railway business, we have already started ourconsole box, which is quite good. This started 2months ago, due to the demand created by customers.In the past, we loaded the shipment with someconsolidation, but like everyone else, we faced a lackof space, equipment, and cargo delay. So when wedecided to do our console box, we received a lot ofsupport from our customers. Our first console was inNovember, and our customers were happy with ourwork. We worked with one of the fellow members inNew Silk Road Network, Polish Forwarding Companyas our partner.

62

With our courier service, there is a lot of businesstoo. Folks in Europe, who are not travelling thesemonths, are staying home and shopping online; weare their service providers. During the COVID-19times, a lot of people changed from traditionalmarkets to e-commerce. Initially, people werereluctant to try it, but now they tried the candy, andthey like it! (laughs). Even though Covid-19 hasbeen a disaster, it has also pushed us to find moreopportunities.

We know and understand each other. We both havea similar working style, we are hardworking, and wetreat customers as our god. Service is first for us!Whatever the customer asks, we say yes, andprovide them with the solution!

NSRN: Recently, many logistic companies havebeen reporting a shortage of containers, has thatimpacted you in any way considering the rush ofthe holiday season? Many in the logistics fieldbelieve that this was caused by the imbalance oftrade between West and China, and furtheraggravated by the coronavirus pandemic. Howare you being impacted, and what could be thepossible solutions to manage this situation?

David: This problem happened to every freightforwarding company. The solution to this kind ofproblem is to have confidence because we know thatthis situation will improve sooner or later. We can’tforesee how many months to wait, but it will improve.Secondly, we try to give diverse solutions to customers.We provide all solutions from all shipping lines to ourcustomers to have a range of options to choose from.We use every connection we have to find space,equipment and any other solution. Sometimes, weeven suggest solutions to our customers and advisethem rail freight over the sea when appropriate. Theguarantee is that your cargo is in our hand, not in theshipping line's hand, so our duty is towards ourcustomers.

Also, for this situation to improve, we need to look atAmerica. When the situation there improves, itimproves for the world as well. US, Europe and Chinaare big engines for the global economy and need tofunction normally for things to move around the world.The current equipment shortage in China pushed us tobuy our own equipment together with PFC. It is ourjoint service for the railway, dependable service withguaranteed equipment.

63

NSRN: You mentioned your weekly block trainservice and new LCL service this month fromChina to Poland, would you like to share moredetails about its progress? What would the nextdevelopments for your company and the plansfor the coming years?

David: Consolidation to Poland is a priority, so wewill do that. We will also develop other departurestations and make them close to our customers. Inthe near future, we want to establish connectionswith other East European countries, such as Czechand Hungary. Our ambition is to have directconsolidation with our own block train, cargo andequipment to arrive at all these destinations. Wewant lesser transit and more direct arrival. Iunderstand that this is not easy, but this is ourtarget for the future.

With our association with New Silk Road Network, wesee specialists in this network. We want to work withthe members closely because we are not competitorsbut friends. It is only together can we grow thebusiness. The market is so huge that there is ampleopportunity for everyone! That is why I want all of us tocome together to grow our respective business.

Published: 31st December, 2020

64

Acknowledgements

This archive would not have been possible without the enthusiastic and wholesome

participation of our members and partners. We would like to thank the following companies for

facilitating the various interviews, which are in themselves a treasure trove of wisdom. A big

thanks to Shenzhen Anda Shun Logistics, Huettemann Group, Intermax Logistics, Kopf +

Lübben, CHS Containers Handel, Hövelmann Logistik, CSL Poland, Agemar Global Logistics,

Rieck Holding, MEL Logistics, Langowski Logistics, Freight Consult, TIJ Freight Service, Otentic

Customs, Container Service Friedrich Tiemann and Ocean Bright for joining us this year for the

New Silk Road Network (NSRN) Interviews.

We would also like to thank the CEO of NSRN, Ziwei Liu for providing the right questions and a

keen editorial eye. A special thanks to Krutika Patri for conducting the interviews and preserving

them for our Knowledge Hub. Finally, what is text, without its readers? So our deepest gratitude

to our readers, who displayed an interest in our work.