Militzer & Münch Magazineissue 01| 2010

Focus on:Afghanistan

Comeback of the Silk Road

Sustainable Logistics

New Communications Concept

Militzer & Münch keeps moving, and moves for-ward, as can be seen in the numerous changes that have been effectu-ated since the last COM-PASS issue came out. To name a few: We signed still more cooperating agreements with market leaders in the forwarding and logistics industry, we are further intensifying the standardizing process for our products, and we are establishing a central key account management for the Group.Our new communications concept mirrors these significant strategic and organizational changes. Internationally, the Militzer & Münch Group now presents itself in a fresh light, via our new website, our customer magazine and image brochure – all in four languages – and all with the aim to better inform you of the latest developments and newest activities of the Group. More on the new communications concept on page 18 f.

Dear reaDerPioneering in logisticsCOMPASS in this issue not only looks at new concepts – we also talk about the true and proven. Like the Silk Road (cf. page 6). Al-most forgotten as a viable route, it has its comeback in today’s energy hungry times. Logistics profession-als, pioneers, are needed to best support the pro-duction and transportation of oil and gas – and that is exactly where we come in! Back in 1994 already, Militzer & Münch was the very first international lo-gistics company to estab-lish its own country organi-zation in Turkmenistan.

Nowadays, Militzer & Münch works an almost gapless network of 50 locations along the Silk Road. As we operate with managers from the area, we are familiar with the local markets and conditions, and are thus well-placed to cope with the future race tracks along these classical trade routes.

Talking of the Silk Road – we have customers asking if we deliver goods to Afghanistan? Yes, we do. From the first road trans-ports in the early sixties to the present day, we have been transporting cargo to Afghanistan. In the article on page 12, you read how our subsidiaries in Iran, Uzbekistan, and Tajikistan

handle the demanding and often also quite dangerous transportation orders to Afghanistan. Sustainability as a success factorClearly, Militzer & Münch is a specialist in many countries that other logistic companies only serve as a by-product of their operations, if at all. And in all our activities, we are highly committed to sustain-ability (cf. article on page 16 f). We believe that our entrepreneurial and ethical responsibility for mankind and environment is, in the final analysis, to the benefit of all – of you, our customers and personnel, and thus, of Militzer & Münch as a whole.

Enjoy reading this new issue of COMPASS!

With best regards,

Ewald Kaiser

02 | EdITORIAL

04 | NEWS

New partner for Spain and PortugalMilitzer & Münch is intensifying its cooperation with the Spanish forwarder TransNatur.

CONTENTS | 03

05 | NEWS

A major contract with Siemens MobilityBeginning this coming June, Militzer & Münch is transporting 38 complete passenger trains from Germany to Scotland. The customer: Siemens Mobility.

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For Bouygues on route along the Silk RoadA huge project that Militzer & Münch executed in Turkmenistan last year for the French construction company Bouygues serves as an example of today’s transportation routes in Eurasia.

12 | REGIONS

"For us, many roads lead to Afghanistan"Transportation logistics in Afghanistan is a difficult and partly risky business. Militzer & Münch has done pioneer work in the Hindu Kush region, and faces new challenges there on a daily basis.

16 | SPECTRUM

"Sustainability is more than making good use of your resources"Owing to its specific focus, Militzer & Münch has begun early to consider the aspect of sustainability.

18 | SPECTRUM

Militzer & Münch emphasizes its strengthsA new concept with customer magazine, newsletter, and image brochure intensifies the Group’s communication for comprehensive information on Militzer & Münch – internal and externally.

PublisherM&M Militzer & MünchInternational Holding AG Zwinglistr. 25 9000 St. GallenSWITZERLANd

Contact: deborah MüllerPhone: +41 71 22715 63 Fax: +41 71 22715 50 Internet: www.mumnet.com

Responsible for contentsEwald Kaiser, CEO

Editorial Office | LayoutSTROOMER PR | CONCEPT GMBHRellinger Straße 64a20257 HamburgGermany

Phone: +49 40 853133 0Fax: +49 40 853133 22eMail: mail@stroomer-pr.de

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Comeback of the Silk Road: New paths trough still difficult terrainFor centuries, the Silk Road had been the major trade route between Europe and Asia, losing importance in the 16th century, as vessels began to replace the camel caravans. The 21st century has seen global, economic, and political restructurings, with the routes of today’s goods flow changing accordingly. The Silk Road has come back. The article highlights the new race tracks through still difficult terrain.

ewald KaiserChief Executive OfficerM&M Militzer & Münch

International Holding AG

NewS//Cooperation with Promod Intensified

04 | NEWS | 05

In the context of its coopera-tion with PROMOd, the fash-ion company, Militzer & Münch has now begun handling also the goods flow from Morocco and Tunisia to France. PRO-MOd, based in Northern France, is among the leaders in the French ladies’ ready-to-wear fashion business.

Militzer & Münch has been working for PROMOd since 2007. In 2009, Militzer & Münch established direct express groupage transports from Turkey to Morocco in cooperation with the Militzer & Münch partner Balnak, Istanbul. With transit times of maximum seven days, bales of cloth are transported to the manufacturing sites. Making use of the cooperation between TransNatur in Spain and Militzer & Münch Morocco, Militzer & Münch France also organizes weekly transports from Spain to Morocco.

“The expanded contract with PROMOd strengthens Militzer & Münch France’s position as market leader in the textile groupage transportation sec-tor from and to the Maghreb countries”, says Sébastien Rouvin, Manager develop-ment Militzer & Münch France.

New Airfreight Hub in Nuernberg

Militzer & Münch airfreight customers in Central, South-ern, and Eastern Europe now profit from reasonable rates and fixed transit times, as Militzer & Münch began operating its own airfreight hub at Nuernberg airport a short while ago.

“At this new hub, we bundle airfreight from all over the world and then truck the goods to their final desti-nations”, explains Harald Mazarin, COO Air & Sea. “Thus, we connect to the international airfreight net-work especially those coun-tries that are served only irregularly by cargo planes, or not at all. We offer our customers in these countries regular connections with fixed transit times at attrac-tive conditions.”

The countries that are main-ly served by this hub are Hungary, Rumania, Bulgaria, Turkey, Poland, the Czech Republic, Slovakia, Belorus-sia, Macedonia, Latvia, and Lithuania.

“Our customers have wel-comed and accepted the new hub eagerly. We are already planning on ex-panding the service”, says Mazarin.

A New Partner for Spain and Portugal

Militzer & Münch is now intensifying its cooperation with the Spanish forwarder TransNatur. Starting in Feb-ruary, both companies have been transacting all ship-ments between the Iberian Peninsula and eleven coun-tries of destination in Eastern Europe and Central Asia exclusively via the respective partner. The cooperation contract applies to groupage, less than full truck load, and full truck load road haulage as well as to airfreight and ocean freight.

“Our country units in Mo-rocco, Tunisia, and Romania are already collaborating successfully with TransNatur”, says CEO Ewald Kaiser, “now, also our customers in Russia, Belorussia, Azerbaijan, Geor-gia, Ukraine, Kazakhstan, Kyrgyzstan, Tajikistan, Turk-menistan, Uzbekistan, and Mongolia benefit from this alliance.”

TransNatur operates a net-work of 14 locations with more than 500 employees in Spain and Portugal. The company counts among the market leaders in Spain es-pecially in the TIR groupage sector. The company’s own bonded warehouses and customs agents guarantee the rapid turnover of import and export goods.

A Major Contract with Siemens Mobility

he transports will set off from Klinkum near Mönchengladbach, Germany. Militzer & Münch Internationale Spedition will forward one to two trains per week to Great Britain via Cologne and Wembley, with projected transit times of five to six days per train. Within one year’s time, all 38 trains – 22 three-module, and 16 four-module electrical multiple units (EMUs) – will have been transported to the final destination, Moth-erwell near Glasgow.

“The big challenge with this transportation contract lies in the fact that the passenger trains travel on their own axles, but can-not run under their own steam”, says Peter Vogl, Managing director Ger-many, Militzer & Münch

Internationale Spedition, “they have to be hauled. The licensing procedure to obtain the necessary permits for these trans-ports is extremely copious and time consuming – you need weeks to prepare the paperwork, as not only all transit countries have to approve of the transport, but also, especially, the operators of the Eurotun-nel, where they have strict safety requirements for such transports.”

The 38 EMUs are a Sie-mens design: Siemens Mobility developed the EMU type desiro UK (Brit-ish Rail Class 380). The first trains are to run between the Scottish cities of Ayr and Glasgow starting in September 2010.

Militzer & Münch Internationale Spedition is transporting 38 complete passen-ger trains from Germany to Scot-land, beginning this coming June. The customer is Siemens Mobility.

On route in Scotland this fall: the Desiro UK 380.

Photo: Airport Nürnberg Photo: TransNatur

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On January 4, 2010, Werner Albert, Chairman of the Board of directors and shareholder of the Militzer & Münch mother company TransInvest Holding, celebrated his 70th birthday.

Albert was born in duisburg, Germany, and has been working in the logistics sec-tor from his first training as a forwarder in the 1950s. In the course of the decades, Albert has become one of the leading experts for East-West rail traffic. Among others, he held positions as Managing director of TransRail and M&M Militzer & Münch deutsche Holding and as a Member of the Board of TransAsia Holding.

For many years, Albert has been active in numerous in-ternational organizations, all with a high degree of com-mitment. He is President of GETO, the Association of European Trans-Siberia Forwarders and Operators, and co-founder and Vice President of the Interna-tional Coordination Council on Trans-Siberian Transport (CCTT). Just recently, Albert discussed ways to intensify rail traffic between West-ern Europe and Asia with Vladimir Jakounin, the presi-dent of the Russian Railway, in Moscow.

Albert is an internationally renowned rail freight spe-cialist and an accomplished strategist. It is impossible to image the TransInvest Group without Werner Albert at the top manage-ment level.

Werner Albert 70

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he historical Silk Road is more than 2000 years old; and it is not one road strictly speaking, it is an expansive network of routes that used to connect the Mediterranean regions to East Asia. Transported along these routes were not only silk, spices, glass, and porcelain, but also ideas, religions, whole cultures.Paper and gun powder travelled along these routes just as Buddhism and Chris-tianity did. Traders, men of letters, and men of sciences trekked along the Silk Road from East to West and West to East, armies marched along.

Steel, oil, and gasThe world has changed – and now, the Silk Road’s network gains importance again. Yet nowadays, instead of silk, spices, and porcelain, the main commodities are steel, oil, and gas. Beneath the Silk Road, im-mense resources of mineral deposits, and the world’s energy reserves of the fu-ture, lie dormant. Not only the USA - China, Russia, and Europe, too, are pinning their hopes on Central Asia.

“The countries of the former Eastern bloc have opened up, and we all know that China and India are going to be the future economic giants”, says Ewald Kaiser, CEO M&M Militzer & Münch International Holding AG, “but the Central Asian coun-tries such as Kazakhstan, Uzbekistan, Turkmenistan have undergone enormous economic growth and struc-tural changes over the past few years, too. They, too, are

opening their doors more and more to international investors. The number of joint ventures with foreign companies that has grown considerably these last years illustrates this devel-opment.”

Many new projects are under way in Central Asia. One of the declared objec-tives: resurrecting the trade routes of the legendary Silk Road. In global econom-ics, the East West axis has gained a new strategic importance – for this is where the fight over the world’s last big raw material reserves will be fought.

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Istanbul

Ankara

new paths Through sTill dIffIculT terrAIN

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the Silk road – for many centuries, it was the

major trade route between europe and Asia. Only when vessels

replaced the camel caravans in the 16th century, did it lose importance.

the 21st century has seen global, economic, and political restructurings,

and the routes of the global goods flows have changed accordingly.

thus, the Silk road has come back. A report on the new race tracks

through still difficult terrain.

08 | FOCUS

New routes and venuesBe it road, rail, or pipe-line – along the five main corridors of the ancient Silk Road, numerous large traffic, energy, and water projects have been initi-ated, with many more being in the planning stage. Taken together, these corridors with their branches form an expansive network that extends mainly in the East-West direction, with one of the five routes additionally connecting Northern Eu-rope and the Persian Gulf (cf. info box).

Today, enormous goods flows – foreign trade and transit goods - are already transported along these routes. The infrastructure along these corridors needs to be developed. Not only that: “Reliable and sustainability-oriented transportation and logis-tics services are of course necessary, too”, says Peter Vogl, Managing director Germany, M&M Interna-tionale Spedition GmbH.

“And by this, I do not only mean accompanying our customers’ goods across several state borders, but also implementing effective processes plus guaranteeing and, if possible, augmenting the efficiency of today’s glo-bally organized production.”

Militzer & Münch – at home in all corridorsdeveloping such services for long distance transports makes high demands on forwarders and logistics services providers, on the professionalism and compe-tence of management and team alike. As a specialist for Eurasia and North Africa, Militzer & Münch faces up to the challenge successfully. The basis for the success: the Group’s own network. Covering Europe, the Magh-reb countries, Russia, Central Asia and the Middle East, the network offers the best possible conditions to han-dle long distance transports effectively. Militzer & Münch is continually expanding this perfect basis, for example by developing the Group’s IT infrastructure. At this time, Militzer & Münch is imple-menting new software that

allows continuous tracking and tracing across national borders, from the Maghreb countries to the Russian Pacific coast, to China, and the ports on the Persian Gulf.

Militzer & Münch is also enhanc-ing its opera-tions sector for greater effective-ness. Thus, in order to safeguard smooth bor-der passages, the Group is ex-tending its network of loca-tions. The Group re-opened its border offices at Termez, Uzbekistan, and Hairaton, Afghanistan, and is in the process of completing the network of Militzer & Münch owned country units in Central Asia. The Militzer & Münch delegation to

Tajikistan was transformed into a country unit entity in its own right in mid-2009.

Today, Militzer & Münch counts 18 locations in Russia alone, 29 in Central

Asia and the Caucasus region, as well as

eight locations in China. Militzer & Münch operates along all ma-jor Euro-Asian corridors. And what is more: The

Militzer & Münch country units are

deeply rooted in their respective local markets,

they have years of experi-ence working in their fields, and, as a rule, they oper-ate through management personnel from the area: These are factors guaran-teeing that in each of these countries, Militzer & Münch

tabriz Ashgabattehran

Bukhara

Samarkand

tashkent

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HamiAnxi

LanzhouXian

turpanKashgar

commands the necessary influence, and can be crea-tive in meeting challenges.

Congress Center, ready to useIt is on this basis that Militzer & Münch has been doing transportation lo-gistics business along the new trade routes, including complete turn-key projects. “These turn-key projects are a special challenge”, explains Vogl, “a challenge that lets us make full use of the advantages and strengths that lie in our network.” An ultra modern congress center, unique in the region, was recently built in Tashkent, the Uzbek capital. Militzer & Münch did all the logistics opera-tions, coordinating and ex-ecuting the deliveries of all supplies from the building materials and construction elements to the furniture and fittings.

/////////////////////////////////////////the eurasian land transport corridors in the 21st Century

1 Northern East West Corridor

4 North South Corridor2 Central East West Corridor

3 Southern East West Corridor

tehran

Istanbul

Helsinki

Persian gulf

Mongolia,China, Korea, Japan

Almaty

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NovosibirskMoscow1

ifteen build-ing projects with material filling 2427 ocean contain-ers plus 1279 full truck loads – that was the job Militzer & Münch did in 2008 and 2009 for Bouygues. “High end building materials such as marble or granite, floors, fully fitted ceiling systems or interior furnish-ings complete with furniture and lighting systems – we transported all goods safe and on time to their desti-nations in Turkmenistan”, says Guillaume de Laage, project manager of Mil-itzer & Münch France, the Militzer & Münch company in charge.The project came with a special challenge as the suppliers for the shipments not only were located in 22 different countries, in China alone they were scattered along the east coast from dalian in the north east to Xiamen in Southern China. Thus, according to Guil-laume de Laage, Militzer & Münch installed a key account manager at the Militzer & Münch Shanghai office to compile all the necessary data concerning the products and the ship-pers in China, and in order to coordinate the transit times.

Militzer & Münch France was in charge, and Militzer & Münch country units from Italy, Turkey, dubai, and Chi-na were integrated into the projects, providing loading space capacities, transport-ing cargo, and handling transportation clearance. From Europe, the compa-nies involved transported the goods mainly on the road, via Turkey/Iran, along the Silk Road. The contain-ers from China and the Middle and Far East came from the other direction and were transported via sea to Bandar Abbas on the Per-sian Gulf, and then trucked as transit cargo through Iran to Turkmenistan.

On the silK rOaD – fOr BOuygues

Turkmenistan, the central Asian country that boasts huge natural gas and oil reserves,

lies directly on the new Silk Road. The country is investing massively in its infrastructure at this time.

The way transport routes in Eurasia function nowadays can be seen in a big project that

Militzer & Münch executed in Turkmenistan last year for Bouygues, the french building contractor.

F10 | FOCUS

through Iran on the Silk road Especially with transit trans-ports through Iran, it is crucial to be able to rely on perfect organization, lo-cally, with people who know about the country’s institu-tions and practices. Only that way will transports to the Iran-Turkmenistan bor-der be run efficiently. PTB (Perse International For-warding Company), Iran’s largest provider of transit transports and Militzer & Münch’s sister company, is a strong partner for Militzer & Münch in this sector.

With the project described here, the large amount of heavy 20 foot containers was a special challenge. “They are not really among the favorite pieces trans-ported by the truckers that service the Iran-CIS route, as the weight puts high pressure on the truck’s axles, and as truckers don’t normally get to pick up any return freight for 20 footers. Neither from the CIS nor from Khorasan province”, explains PTB transit man-ager Sadaf Sabbaghi. And she adds: “This is where our creativity and our diplomatic talents were really needed to keep transit costs as low as possible and to get the containers back to the port fast.”

the World economic Crisis and Freight Carriers Another very specific chal-lenge especially with trans-ports from the East going to Turkmenistan came with the global economic and financial crisis. The crisis changed the conditions on the logistics markets funda-mentally in 2008 and 2009. Shipping lines drastically decimated their capacities on the Asia Europe route. Export volumes, too, went down considerably. “In Chi-na, a major country of origin for the supplies needed for the project, and in other upcoming Asian markets, many local freight carriers and road hauliers practically disappeared overnight, and suddenly it became very difficult to find appropri-

ate transport companies”, says dieter Buchinger, Managing director Militzer & Münch China, “but our internal network stood the test perfectly and together, we were able to come up with solutions.”

to turkmenistanon timeThe last, but also the deci-sive, link in the transporta-tion chain along the Silk Road was Militzer & Münch Turkmenistan Ltd. Says Managing director Maksat Nuriyev: “We were respon-sible for the handling of the goods here, for managing customs clearances, and for the administration and doc-umentation of the project.” Thanks to the close coop-eration with other Militzer & Münch country units, the company was notified of the arrival of shipments on time and was able to consolidate cargo accord-ingly. “Not only that”, adds Maksat Nuriyev: “Our close communication allowed us to analyze potential prob-lems, and solve any existing issues.”

Militzer & Münch – at the center of the Silk road

Back in 1994, Militzer & Münch was the first in-ternational forwarder to found its own subsidiary in Ashgabat, the capital of Turkmenistan. M&M Militzer & Münch Turkmenistan ltd. has since expanded continuously and has secured itself a leading position among the top forwarders of the market. To this day, Militzer & Münch Turkmeni-stan remains one of the few international forward-ers and logistic companies in Turkmenistan that combine long years of experience with compe-tence, visibility in the local markets, and a regional network.

Militzer & Münch Turkmenistan offers a very di-verse service portfolio. Thus, the company handles almost 50 % of the country’s cotton export, and is, at the same time, a specialist for project shipments implying the transportation of heavy lift and out of gauge cargo such as industrial machinery, or ma-chinery for road construction and building. during the last four years alone, Militzer & Münch Turk-menistan’s project team delivered more than 400 big pieces of construction machinery. In one other case, the project team handled the transportation of several complete tarmac plants. The Turk-men subsidiary counts on further expanding its activities over the next few years, as the number of international corporations investing in Turkmenistan is increasing steadily.

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The Turkmenistan coat of arms shows a horse of Akhal Tekin breed, one of the world’s oldest breeds. Akhal Tekin horses are extreme-ly high performers and are very well suited for difficult, long distance rides.

Ashgabat, the Turkmen capital, lies on the Silk Road of the 21st century.

Transportation logistics in Afghanistan is a difficult, and partly risky, business. In logistics, Militzer & Münch has done pioneering work in Afghanistan – and tackles new challenges every day.

MIlITzER & Münch, ThE coMMITTEd pIonEER

“foR uS, MAny RoAdS lEAd To AfGhAnISTAn”

company transports goods to Afghanistan have to be kept secret, or else “our trucks, the cargo, and even the driv-ers could become targets!” That makes it really clear: Transport logistics is a very difficult and partly risky busi-ness in Afghanistan. Militzer & Münch has done ground breaking pioneer work in the Hindu Kush and stands up to new challenges day after day.

If you travel through Afghani-stan nowadays you meet either with admiration, or pity. Poverty, civil wars, and the Taliban regime have shaped the country for decades. Many do not know though that trade routes are open, and that there are function-ing logistics services in the country.

For years, apart from the trade motivated by profit and economic gain, millions of other shipments have been transported into the country, shipments that support the reconstruction of the country: equipment and supply goods for the military and the secu-rity personnel, medical sup-plies and medical equipment for the general health care, technological appliances and equipment, and building sup-plies for the numerous Non-Governmental Organizations (NGOs) and relief organiza-tions that are assisting in the reconstruction of the country.

the Afghanistan pioneersFor Militzer & Münch, the Afghanistan commitment is part of its corporate his-tory and has almost become everyday business. Says Peter Vogl, Managing di-rector M&M Internationale Spedition GmbH, Germany: “We have been working in Afghanistan in the transporta-tion sector for over 45 years. When we first began, in 1964, to do road haulage from Munich to Kabul it was a real pioneer job! Instead of three months by sea, the average transport by truck took only three weeks.”

In October 1960 already, Militzer & Münch had

REGION | 13

serviced the route Munich-Tehran for the first time. And very successfully: There followed 60 such trips within ten months. Then, with the freight going to Kabul, Militzer & Münch expanded its range of Eastern destinations. The transports to Kabul were difficult, and difficult they have remained over the years. Yet Militzer & Münch has not given up its presence in the Afghan market through the years.

Today, Militzer & Münch is still operating a large por-tion of its transit transports to Afghanistan via Iran, mostly in ocean containers from the port of Bandar Abbas. “At the moment, our main cargo are trade goods such as veg-etable oil, tea and cigarettes, or tires and spare parts that go from South Korea, Japan, Pakistan and the United Arab Emirates to Afghanistan”, says Sadaf Sabbaghi: “Last year alone, we had a transit volume of over 3 200 TEUs.”

the northern and western routes are gaining importanceTwo new routes, the route from the west, coming in from Iran, and the supply route through Afghanistan’s northern regions, are begin-ning to replace the southern route through Pakistan that has so far been widely used by international transport companies and relief agen-cies. “Uzbekistan, Turkmeni-stan, Tajikistan, and Iran now serve increasingly as transit countries for cargo going to Afghanistan”, explains Vogl. Militzer & Münch, he explains, is very well estab-lished in all these markets and disposes of the neces-sary equipment and the necessary structures and competences to execute safe transit shipments.

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Munich – Kabul, a world premiere

on Monday, August 3, 1964, Militzer & Münch made transport logistics history, as it sent the first truck load from Germany to Kabul. The trip had been prepared and planned carefully. The cargo: ten tons of asbestos-ce-ment pipes for the Vorwerk plant in Kabul. The trip is the first in a series – there will be regular direct traffic on this route. 8327 kilometers and 27 days later, adventure-filled days on dirt roads, across wooden bridges, through de-serts and across high mountain ranges, the truck reaches Kabul – safe.

This “maiden voyage” gets such a lot of attention that the second trip is covered by a five-man TV team from the German zdf. for Militzer & Münch, this second trip is a test run: They want to find out if the route can be maste-red also by a truck with a tri axle trailer. Will the 212 pS engine be strong enough to haul the load, a gross weight of 36 tons, across mountain ranges with 3000 meter peaks? A real adventure, this!

one third of the route are unpaved dirt roads; one day, the trucker has to change five tires! That means: a two-day stop in the desert. Then there are national holidays in the different countries along the route – all in all, they add up to a twelve-day delay. Again and again, the truck & trailer work uphill strenuously, for hours, in first gear, with temperatures around 50 c and of course without air conditioning. Then down it goes through hair pin ser-pentines, always braking with the engine. The TV team reports that again and again, the profile of the trailer’s rear tire hangs above the cliffs, just centimeters from the abyss. But the trip has been prepared carefully, the truckers are experts in their field, the Militzer & Münch offices along the road contribute their support, and in the end, the experiment succeeds beautifully. The truck delivers its cargo after a four-week trip safe at the Kabul customs station. The route has been a fixture in the Militzer & Münch network ever since.

A friendly smile – that‘s how Sadaf Sabbaghi answers the ques-tion. “It would be much too dangerous to give details”, explains the Transit Man-ager of the Iranian Militzer & Münch sister company PTB (Perse International Forwarding). details about the customer for whom her

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Afghanistan: economic growth guarantees stability

Afghanistan is the prototype of a transit country. Migrating masses during the great Barbarian Invasions, conquerors, tradesmen, or missionaries: for centuries their paths crossed in Afghanistan. And still people fight over Afghanistan, and they fight hard. Since the Taliban regime was ousted in 2001, the country has been fighting, once again, for peace, reconstruction, and development. Economic growth is regarded an essential element towards the country’s political stability.

for eight years now, united nations ISAf (International Securi-ty Assistance force) troops have been deployed in Afghanistan, a commitment that has become a subject of great controversy in public discussions. yet everyone agrees on this one point: that economic prosperity is an indispensable precondition for the commitment of 42 nations in Afghanistan to be a successful operation in the end.

Eight years after the international reconstruction began, Af-ghanistan still ranks among the world’s poorest nations, accord-

ing to statistics published in the united nations development

Report. There is almost no industrial production, 80 percent of the population work in the agricultural sector. yet there is a trace of economic growth, as in the course of the past few years, economy increased

at a two digit rate, in 2007/2008 by 11.5 percent. The IMf (International Monetary fund) estimated

the legal per capita income in 2007/2008 at 354 uS dollars – the figure has more than doubled

over the last few years. There is marked progress also in the fields of education and health care. About 50 % of school-age children go to school, whereas in 2002 there were

only 22 percent, and between 80 and 85 percent of the popula-tion now have access to primary health care.

>>> The Militzer & Münch office in Tashkent for ex-ample coordinates all com-munication, and procures all necessary paperwork and permits for all transit ship-ments via Uzbekistan. “We transport all cargo across the only bridge in Afghani-stan’s north, the ‘Bridge of Friendship’, that connects the border towns of Termiz and Hairaton”, says Khurshid Kasimdzhanov, Managing director M&M Militzer & Münch Uzbekistan S.C. “Last year, we reopened our border offices in both towns, so we are now able to handle the growing freight volume more efficiently and more directly.”

The border crossing Termiz-Hairaton is also used for part of the transit volume coming in from Iran as the contain-ers from Bandar Abbas are shipped there by rail. Yet, as Sabbaghi explains, this is the exception: “As a rule, sea freight arrives at Bandar Ab-bas in 40 foot containers, and 99 % of these are transported on the road to Islam Qala, the Afghan border station.” Here, the containers are un-loaded and the goods are loaded onto Afghan trucks that on-forward them to their final destinations, mostly in a convoy with a military escort, for safety reasons.

No exports via IranPTB transports the contain-ers back from Islam Qala to Bandar Abbas – empty. There are some export goods from Afghanistan, such as licorice root, yet shippers have again and again tried to use export transports to smuggle drugs out of the country. Which is why, as Sadaf Sabbaghi explains, PTB does not ac-cept any export goods from Afghanistan.

45 years ago, when it all be-gan, there were direct ship-ments to Kabul – now, they are no longer accepted be-cause of the growing number

MILItzer & MüNCH IN AFgHANIStAN /////////////////////////////////////////////////////////////////////////////////////////////////////////////////

of Taliban in Kabul. “Islam Qala, Herat and Mazar Shar-if are still relatively safe”, says Vogl, “but transports into Kabul are relatively high risk jobs, and we do not want our employees to be exposed to such risks.”

“With its commitment in Afghanistan, Militzer & Münch has done real pio-neer work in the transport logistics sector and has once again shown that it can offer top service even

Kabul

Company:M&M Militzer & Münch Afghanistan Ltd.

Branches: Eslam Qaleh, Hairaton, Herat, Masar-e Scharif, Thorgundi

Contact: M&M Militzer & Münch Afghanistan Ltd.43, St. 2, West of Charahe-Haji-Yaqoup Shar-e-NowKabul City

Phone: +93 20 220 1392

eMail: mumafka@mumnet.com

Masar-e Scharif

Company: M&M Militzer & MünchAfghanistan Ltd.

Contact: West of Rawz-e-Mubarak Haji Mohd. Wali apartment 2nd floor, Room No. 99 & 111

Phone: +93 50 200 26 98

eMail: mumafka@mumnet.com

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in difficult markets”, Vogl continues. “Thanks to our dense network in the region, thanks also to our year long experience and know-how, and our pres-ence in the local markets, we are able to offer our customers the best pos-sible service for ship-ments to Afghanistan. Whether via Uzbekistan, Iran or Turkmenistan, with Militzer & Münch, many roads lead to Afghani-stan.”

“susTAinAbiliTy is MorE ThAn uTilizing your rEsourCEs EFFECTivEly“

owing to its specific orientation, Militzer & Münch has begun early to think about sustainability. Ewald Kaiser, cEo M&M Militzer & Münch International holding AG, explains here his approach to sustainability, and how a whole range of „soft“ factors already contributes to increased competitiveness and success in the market.

16 | SPECTRUM

verybody talks about sustainability. In the logistics business, the focus lies especially on the efficient, intelligent, and economically as well as eco-logically appropriate use of one’s resources. This is of course an important, and a correct approach, as we need to avoid superfluous trips and the unnecessary use of carriers – and thus, the energy consumption that comes with it.

In view of progressing glo-balization, new economic zones, and new trade routes, it would however be wrong to reduce the notion of sus-tainability to this one aspect. For, first of all, we are talking people here: people who exchange opinions, people who do business with each other, and who work and communicate together.

Reviewing one’s own management systemIt is no coincidence that already in 1994 the United Nations International Con-ference on Population and development (ICPd) in Cairo formulated a clear defini-tion of “sustainability”, a definition that today is more important than ever for our economy: “Sustainable de-velopment as a means to ensure human well-being, equitably shared by all peo-ple today and in the future, requires that the interrela-tionships between popula-tion, resources, the environ-ment and development should be fully recognized, properly managed and brought into harmonious, dynamic balance.” (Official ICPd Report, Principle 6).

Thus, we cannot simply re-duce sustainability to mean careful utilization of our resources – sustainability includes managerial and ethical responsibility, too. International corporations

e SPECTRUM | 17

as the main driving forces of globalization need to be-come aware of this respon-sibility; they need to review their style of management, their corporate social re-sponsibility and compliance as well as all corporate proc-esses and decisions so they operate on the premise of sustained economic growth and sustainable develop-ment.

customers are demanding sustainable processesMany of the global players have long recognized and integrated the principle of sustainability into their man-agement policies. Not only for themselves: Increasingly, they now demand sustain-ability also from their logistic service providers, and rightly so.

The logistics sector as a glo-bal economic force is well advised to take entrepre-neurial and ethical responsi-bility to remain competitive. Not only to comply with the customers’ wishes, but also to safeguard sustained development for their own logistics companies, their growth, and their staff. The time has come – for in the logistics sector, too, there are now more and more midsized companies in the market alongside the large global players; and these midsized companies have long begun serving markets beyond their own national frontiers.

Militzer & Münch can serve as a good example here owing to its specific devel-opment and geographic orientation. The company was founded in Germany in 1880, and in 1892 already Militzer & Münch trans-ported freight to Italy. Ever since, the company has been active internationally. As a specialist for the East, with an international service portfolio that includes over-land transportation via road and rail, air and sea freight, and project logistics along the East-West axis, Militzer & Münch was, in many coun-tries and regions of Eurasia and North Africa, among

the pioneers that developed modern logistics structures.

An early lesson in sustainabilityIn its role as logistics pioneer, Militzer & Münch learned early to view sustainability as linked to the economic, social, and environmental context, and to gear its ac-tions to the consequences drawn. This also includes finding the right balance between economic premises such as growth, competitive-ness, efficiency, on the one hand, social needs such as safety, health and equality (of the staff, in this case), on the other, plus, as a third fac-tor, environmental aspects like the use of resources, and emission or noise control.

Of course, given the enor-mous differences that exist between countries and re-gions, the question is: How can we offer a service that meets local and international requirements at the same time? If a service provider wants to be successful in the markets of Germany, Azerba-ijan, Iran and Morocco at the same time, management style and sustainability have to be double checked. In order to safeguard sus-tained development and sustainable action, Militzer & Münch’s decisions and actions are guided by the following principles:

1. We respect the foreign cultures

2. We are deeply rooted in the local markets

3. We strengthen the human factor

4. We employ local man- agers who work ac- cording to international standards

5. We are independent from politics and other power structures

6. We operate on a long- term basis

7. We do not use child labor and renounce exploitation

8. We meet the require- ments of our internal code of conduct

local and international know-howMilitzer & Münch’s Code of Conduct also prescribes that we understand and respect different cultures and men-talities, and that our employ-ees agree on exchanging ideas rather than on domi-nance. That way, Militzer & Münch reaches a higher level of competence than by employing expatriates. That does not affect the operative performance at all: Our cus-tomers can of course rely on the top quality performance of our operations team.

That Militzer & Münch op-erates successfully in such highly diverse countries lies in the integrative combina-tion of local and interna-tional know-how. The local management staff and the international orientation of the company – this combina-tion guarantees economic success, locally as well as internationally. Our country units are very independ-ent in their daily business transactions, yet they remain transparent, predictable, and calculable for the Group’s management board.

Sustainability as the competitive edgeSustainability is an important factor today, and more and more companies are trying to find out what sustainabili-ty means for them specifical-ly. The logistics sector plays an increasingly important role in economy, and it acts globally – it is thus crucial that the logistics and trans-portation industry does not consider sustainability as just another word for successful marketing, but as a concrete competitive advantage.

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Militzer & Münch eMphasizes its strengths

As a transportation logistics company, Militzer & Münch has been focusing for decades on Eurasia and north Africa. The company now emphasizes this clear focus via its new, intensified communication measures. customer magazine, newsletter, and image brochure have been reworked with the objective to provide in-depth information on Militzer & Münch, internally as well as externally.

COMPASS: Mr. Kaiser, for about 18 months, you have been respon-sible for the develop-ment of the Militzer & Münch group. Has the self-image of the company changed in that time?

ewald Kaiser: It has not changed, but developed. We were and are “the specialist for the East” with a clear focus on Eurasia and North Africa – and we do not want this to change. We offer our serv-ices in Western and Eastern Europe, in the Common-wealth of Independent States (CIS), in the Maghreb region, and in the Middle and the Far East. These regions are becoming more and more interesting ow-ing to their economic and political developments, especially since we do not only service the “classical race tracks”, but also the more exotic routes.

COMPASS: Do other companies not service these mar-kets, too?

ewald Kaiser: They do, but with a differ-ence: While the other firms – especially the multination-als – often service these markets merely as a by-product of their operations, we have our concentration specifically on Eurasia and North Africa. And we base our commitment on the notion of a long-term and sustained development. We respect foreign cultures,

strengthen the human fac-tor, and make wise use of our resources – and every member of our staff lives this creed, at every loca-tion. Thus, we are not only “active” in these markets; we are deeply rooted, with a local management and a national customer base. Our customers get international, high competence perform-ance and, wherever possible, standardized services that meet western requirements.

COMPASS: What is the difference between Militzer & Münch’s communication now and before?

ewald Kaiser: Our objective is to enhance the visibility of Militzer & Münch’s developments and strengths. Yet, before com-municating these points, we did some strategic and organizational restructuring and adapting. Thus, we now offer our services uniformly on the international mar-kets, in these business sec-tors: road, rail, air, sea, and projects. At the same time, we developed our products and standardized them as far as possible. With this development and through offering customized trans-port logistics concepts we are now aiming at attract-ing the big multinationals. Chaim Husson Huijsman, our new director Business development, will play an eminent role in this context. His main tasks are to imple-ment a group-wide and cross-business sector key account management, and

18 | SPECTRUM SPECTRUM | 19

to develop industry solutions. Our communication scheme keeps step with these strate-gic and organizational altera-tions.

COMPASS: there used to be a web-site, a newsletter, an image brochure. What’s new here?

ewald Kaiser: Today, the motto is: “one company, one message”. In a globalized economy, com-munication and marketing have to be homogeneous, worldwide. Thus, internation-ally, we present ourselves now in a more homogeneous form: one single website, one com-mon newsletter, one image brochure. Those were the first steps in the restructuring of our marketing strategy. As a second step we intensified our communication in order to give the best possible informa-tion, both internally and exter-nally. And thirdly: Our com-munication now clearly reflects our self-image. We do not only want to publish information on our performance, services, and our geographical orienta-tion, we also want to show the human side, the persons that serve and work for our custom-ers. As a consequence, there are also full length features in Compass about the regions where we work, such as the Maghreb countries or Afghani-stan.

COMPASS: Mr. Kaiser, thank you for your time.

INteRNet Whether to look up the phone number of the Militzer & Münch branch office in Astana, or to track a shipment: customers and staff find quick and topical informa-tion on the Internet at www.mumnet.com. A completely new lay-out has just been released.

CoMPASS Information about Militzer & Münch in Ger-man, English, french, and Russian, twice a year, with a bold look at the wider picture – compass, the customer and employee magazine

MILItzeR & MüNCh NewSThe internal newsletter “Militzer & Münch news” gives Militzer & Münch staff topical information on current trends and develop-ments.

The World of Militzer & Münch

M&M Imagebroschuere_TP_step2_02.indd 1 12.02.2010 11:13:59 Uhr

Eine ganze Fabrik zieht um, Rotoren einer Windkraftanlage reisen um die halbe Welt: In der Projektlogistik ist nichts zu groß, zu breit oder gar unmöglich. Doch nicht nur Planung, sondern vor allem auch ein hohes Maß an Flexibilität und die richtigen Exper-ten sind erforderlich, um große Projekte zu meistern.

Die Projekt-Teams von Militzer & Münch übernehmen die gesamte Abstimmung und Durchführung aus einer Hand. Das beginnt bei der persönlichen Beratung und detail-lierten Planung und reicht bis zum Trans-port per Schiff, Flugzeug, Lkw oder Bahn. Selbstverständlich kombinieren wir auch die Verkehrsträger – für jedes Projekt und jede Herausforderung fi nden wir die optimale Gesamtlösung.

Unser Full-Service-Angebot umfasst ebenso das Einholen notwendiger Genehmigun-gen, einen Versicherungsservice und eine durchgängige Sendungsverfolgung. Zudem demontieren wir ganze Anlagen, lagern sie um, montieren sie und nehmen sie wieder in Betrieb.

Auch bei der Projektlogistik spielen Landes-grenzen für uns eine untergeordnete Rolle: Wir transportieren Ihr Schwer- und Gefahr-gut quer durch Europa, Asien und Nord-afrika – natürlich nach höchsten Sicherheits-standards.

„Unwegsames Gelände, Behördenaufl agen, klimatische Extreme? Um Projekte sicher abwickeln zu können, bedarf es Erfahrung, Flexibilität und Kontakten. Profi s eben!“

Das Unmögliche möglich machen

PROJECTS

M&M Imagebroschuere_TP_step2_02.indd 15 12.02.2010 11:14:25 Uhr

IMAGe BRoChUReJust out: “The World of Militzer & Münch”, the 16-page image brochure, presents the Militzer & Münch service portfolio with the newly defined business sectors and the Group’s network.

LEISTUNGEN

• Erstellung der benötigten Papiere

• Einholen von Sondergenehmigungen

• Besorgung von BF2, BF3- und Polizeibegleitungen

• Regelmäßige Schulungen unserer Mitarbeiter

• Eigener Gefahrgutbeauftragter

• Verzollung der Waren

• Fachgerechte und sichere Verladung

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Far Eastern origami and western business – Militzer & Münch not only connects people and markets but also cultures – from Europe to Asia, from North Africa to the Middle East. Profit from our tightly knit network of more than 120 locations in over 30 countries, from our deeply rooted know-how of the areas where we operate, and from our pioneering spirit and innovativeness.

Connecting cultures.