india: set for growth - logwin logistics · contents 4 the united states of india high-tech...

The magazine for logistics customers and decision makers 02 | 2009

Interviewwith John Sobeck,ZF Friedrichshafen AG, about automotiveindustry logistics

The Sprinter networkMulti-talented perfor-mers: Newspapers bynight, auto parts by day

India: Set for growth

2 www.logwin-logistics.com – Logwin Magazine – 02|09

editorial

ImprintLogwin Magazine 02|2009

PublisherLogwin AGZIR Potaschberg5, an de LaengtenL-6776 GrevenmacherPhone +352 719 690-0Fax +352 719 690-0E-Mail [email protected]

V. i. s. d. P.Mara Hancker

Titel:Shweta Jain is a Logwin employeein Delhi and responsible for sea -freight export.

ABOUT LOGWIN

Dear Readers,

There’s one thing we can say for certain about 2009: it has been an eventful year – indelibly marked by the effects of the global financial crisis. We too have been affected by these turbulentevents – declining freight volumes and the drastic fall in cargo rates have weighed upon our busi-ness. Our response: capacity adjustment and cost reductions. We are fighting against the crisiswith measures aimed at achieving stability. In these difficult economic circumstances, all busi-ness are looking for ways to increase efficiency. Effective long-term solutions are emergingmainly through collaborative partnerships with our customers. Meeting their requirements is the focus of all of our efforts.

Despite the overall economic situation, however, 2009 is also a year of new beginnings for us.Logwin has developed significantly as an integrated logistics service provider. You will find newevidence of that every day – even right here in this magazine. In this issue we bring you storiesfrom the business world and the wider community. We talk to internationally renowned expertsand tell you about exciting logistics solutions. We’ve deliberately chosen to focus on India be -cause in 2009 we made a strategic move to expand our presence on the south Asian subconti -nent by establishing a Logwin national subsidiary. Today, we are there for our customer in over400 locations in 45 countries with internationally uniform IT systems, standardised processesand tailored solutions.

This high standard will remain our guiding principle into 2010. Our agenda is to extend our globalnetwork and to continually improve our customer-focussed logistics services. Our aim is to be areli a ble, high-performance partner for our customers – now and into the future.

I would like to take this opportunity to express my thanks to our customers for their confidence in working with us and to our staff for their dedicated work. It is our staff that gives our businessa face and that turns our commitment to service into a reality every single day.

Sincerely

Berndt-Michael WinterCEO Logwin AG

As an integrated logistics and service provider, Logwin deve lop comprehensive solu-tions for industry and com -merce. With a staff of 8,000 at400 locations in 45 countriesaround the world, Logwin offercontract logistics, internationalair and sea freight as well asroad and rail transport services.Logwin’s customised logisticssolutions help create sustain -able growth for its customers.To find out how this can happenfor you too, log on towww.logwin-logistics.com

3www.logwin-logistics.com – Logwin Magazine – 02|09

contents

4 The United States of India High-tech metropolises and 650,000villages – The world’s most populousdemocracy is setting itself some big challenges

7 “Europe is no longer thebenchmark”Interview with Dr. Aditya Dev Sood fromthe Indian Center for Knowledge Societies

9 The global network continuesto growLogwin’s national subsidiary in India getsup and running

9 “Investing in the future”Interview with Vijay Nair, Managing Director India

10 On the informationsuperhighway in India India is not being left behind: New branchoffices have full access to online servicesfrom day one.

11 The fantastic fourBRIC – from problem children to golden boys

24 News in briefCustomers, projects and awards

28 Racing fever The fourth Allgäu-Orient Rally and the 24-hour race at the Nürburgring

30 Competition

12 Interview with John Sobeck, Head of Logistics at ZF Friedrichshafen AG

14 The Sprinter networkA clever transport solution for media and automotive industries

17 Heavy transportAn Airbus engine on board

18 Project logistics Spare parts in a hurry for Beluga Shipping

19 Specialised solutions Using silos as a logistics strategy

20 Interview with Lai Bou Leong, Managing Director ofFresenius Medical Care Singapore

22 Country report Singapore and Malaysia: two dynamic trading nations in South East Asia

Focus on India

The Subcontinent charts a course for growth

The Sprinter network

Making intelligent use of synergies: 500 vehicles delivering auto parts by day and print media by night

ZF Friedrichshafen

Out of tradition comes a partnership for the future

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FOCUS BACKGROUND NEWSFLASH


focus india


ROLE MODEL AND BEACON OF HOPE

The United States of IndiaWith 1.2 billion people, India is the most populous democracy on Earth. Over the last few decades, the Subcontinent has developed at an impressive rate. Following China, India is now regarded as the new economic power of the future and thecountry is showing healthy growth despite the economic crisis.

Anyone who follows reports on India will know that the rapid growth of the country’s major cities is in stark contrast to the backwardness of its rural areas. As a consequence, many people from rural areas aredrawn to the cities looking for work, a place to live and a secure income.Providing better services for the rural population is one of the highestpriorities of the government of President Pratibha Patil and PrimeMinister Manmohan Singh. Not least because of the hope that, throughthis support, farmers will also join the ranks of India’s consumers –domestic demand currently being the key factor that underpins thegrowth of the Indian economy.

Getting from A to B

India’s transport infrastructure has so far been unable to keep pacewith the growth in industry, IT and communications. While many farmworkers own a mobile phone and are connected to a communicationsnetwork, travelling to the nearest big city is often an ordeal. Only abouthalf of India’s roughly 3.3 million kilometres of road is sealed. But eventhese roads are not able to cope with growing traffic volumes. India’stransport minister, Kamal Nath, has announced that over the next fewyears 30 billion euros will be spent on upgrading major highways alone,with the government providing half of these funds. The Minister is as-suring private investors of toll revenues and high returns.

Despite the urgent need for roads to be upgraded and extended, and despite the long distances within India, 75 per cent of the country’stransport is by road. Rail accounts for just 15 per cent of freight move -ments. The railway network is equally in need of improvement: delays,standby times and a low average speed of just 23 km/h are the norm.While there are private investors to be found for the road network, thesearch for financial backers for the railways is coming up with limitedresults. That’s because of the significant challenges involved. A largepart of India’s landscape is mountainous and difficult to access. Thereare no less than four different gauges and the majority of lines aresingle-track, with twin tracks ononly aquarterof the entire rail network.Electrification is also limited to just 30 per cent of the network, with theother 70 per cent being serviced exclusively by diesel locomotives. Ontop of that, the administration of the 64,000-kilometre rail network isshared between 16 regional railway authorities. Although DeutscheBahn [German Railways] and Indian Railways reached an agreement inJanuary 2008 to jointly develop freight centres in India, we regret thatan inquiry made to Deutsche Bahn by Logwin Magazine as to the

current status of these collaborative efforts remained unanswered atthe time of our editorial deadline.

One government, many peoples

To understand the current political and economic situation in India, youcan’t overlook the country’s history. India is one of the oldest civilisa -tions in the world. The first Indian empire arose in the fourth centuryBC. In the north of the country and in what is now Pakistan, pre-plannedcities with water supply systems and sewerage systems date back asfar as 2500 BC. In the eighth and twelfth centuries, the influence ofIslam increased in northern India, and this had an effect on both the ad-ministration and the culture of the region. European colonialism beganto make its mark around 1500 when Portugal seized minor bases alongthe coast. From the 18th century onwards, the British gained influencein India, driving out the French and the Portuguese. From 1877 to 1947,the kings and queens of England bore the additional title of Emperor/Empress of India. As a result of the Indian independence movementheaded by the spiritual leader Mahatma Ghandi, India was divided intotwo independent states in 1947, each with its own government: theHindu state of India and the Islamic state of Pakistan.

Today, India is made up of 28 federal states and 7 union territories;the latter do not have their own government and are administered bythe federal government directly. In addition to the official languagesHindi and English, a further 21 languages are recognised. A total of over100 languages are in common use, while more than 300 spoken langua-ges and over 1,600 dialects are documented. The majority of Indiansare Hindu (approx. 80 per cent), followed by Muslims, Christians, Sikhs,Buddhists and others. The diverse range of faiths has given rise to politi-cal unrest – the ultimate splitting apart of Pakistan being the clearestmanifestation of this.Upuntil1971, Bangladesh (formerly East Pakistan)was a part of Pakistan; since that time, the region also known as Bengalhas been independent. Despite independence, the potential for conflictin the region is as great as ever. One reason for that in particular is thedisputed former princely state of Kashmir, to which not only India andPakistan, but also the People’s Republic of China, lay claim.

Prior to the end of the Cold War, India had an especially close rela-tionship with the Soviet Union. This was the result of, among otherthings, the fact that neighbouring Pakistan had sought support fromthe USA and China in the conflict over Kashmir – so India needed astrong ally too. This connection to some extent explains the central


planning flavour to India’s otherwise democratic economic policies. It was not until the fall of the Iron Curtain that India pursued an agenda of liberalising and opening up its economy – a major pre-requisite forengaging overseas investors.

Yesterday spices, today IT

India is still going through a process of internal political reform, throughwhich the country is advancing its integration into the global market -place. The range of goods being traded has changed a great deal fromthe days of India’s first trading relations. While spices, cotton and teawere at the top of the sales list in those early days, today services inindustries such as IT represent India’s primary export. But the globaleconomic crisis has not passed India by. While in 2008 India’s IT out -sourcing firms employed as many as 800,000 workers and posted

Helmut Kaspers, COO within Logwin’s businesssegment Air + Ocean

EXPERT OPINION

It all comes down toinfrastructure

“The structure of the nation’s transport networkhas an effect on final dispatch at the port. Theconnections to inland areas must be improveddramatically; warehouse capacity must be in -creased enormously. It is absolutely essentialto modernise and increase the size of theports. It’s only by doing all of these things thatcurrent laytimes of 3.85 days can be broughtdown nearer the average laytime of 10 hours in Hong Kong for instance. As 90 per cent of India’s foreign trade travels by sea, the

expansion and modernisation of the country’stwelve major ports is a matter of the highestpriority. These ports already account for three-quarters of all shipping.

The greatest visible progress is being made in the modernisation of India’s airports.Numerous private sector companies areinvolved in the expansion and upgrading of the country’s twelve international airports and more than 1,274 domestic airports.”

US$13 billion in revenue, today they are reporting losses. Demand from Europe alone has crashed in comparison to last year, with thetotal value of contracts falling by 45 per cent. But overall the sector is optimistic. By 2020, revenue from IT services is expected to climb to US$175 billion.

Nationally, agriculture still plays a significant role, accounting forover half of India’s workforce. The main crops are rice, wheat, oilseed,jute, tea, sugar cane and potatoes.

India is growing

Despite the crisis, the Indian economy is expected to grow by seven per cent in 2009, with optimistic forecasts putting the figure as high as nine per cent. India’s new role in the marketplace is less that of asupplier of raw materials and more that of a producer. Crude oil and petroleum products top the list of exports; textiles,precious andsemi-preciousstones and jewellery, and chemical products, especiallypharmaceuticals, are the main exports. India’s main trading partnersare the USA, Great Britain, Japan, China, Belgium and Germany.

Nominal gross domestic product for 2008/2009 is estimated to be 768 billion euros. This equates to an increase of 15.5 per cent overthe previous year. Per capita income has doubled over the past sevenyears and amounts to 586.300 million euros Indians still live below the poverty line. But, thanks to continuing economic growth, more andmore people are rising to the middle classes.

If India can successfully eliminate the factors that are impeding theeconomy, such as inadequacies in infrastructure and the disparitiesbetween urban and rural areas, it will continue to stake its claim as oneof the world’s strongest growth markets. �

TALKING TO DR. ADIT YA DEV SOOD

“Europe is no longer the benchmark”Market research is immensely important in India due to the country’s very heterogenous make-up. Economic activity isconcentrated in the major cities such as Delhi, Mumbai, Pune, Bangalore and Chennai, while regional areas are fallingbehind in terms of industrial development. Dr. Aditya Dev Sood is the founder and CEO of the market research organisa -tion, the Center for Knowledge Societies. What is his assessment of the current situation and where does he see newopportunities? Logwin Magazine digs deeper.

Logwin Magazine: Indian consumers’ habits are changing at a breath -taking rate. How do you see things progressing from here?Dr. Dev Sood: There are several aspects to this. The elite are lookingbetter and better all the time in comparison to the rest of the world.People moving away from rural areas are finding a wealth of possibili -ties in the cities. Consumption is increasing and industry is developingaccording to its own standards – it is no longer looking to Europe or theUS as the benchmark.

When you look at current consumer behaviour in India, young peopleare playing the most significant role. Young people have different valuesto their parents; progress and change have always been a part of theirlives. They have their own style and modern views that are increasinglybeing expressed in distinctive, contemporary Indian designs.

Logwin Magazine: In your research you’ve looked at the change in consumer behaviour in the telecommunications market. What propor -tion of the Indian population is connected to mobile communicationstechnology today? Dr. Dev Sood: In the coming year nearly 400 million Indians will be connected to a mobile communications network – that will be close to35 per cent of the population. But you have to look at those figures in a different way. In India there is an average of 5 people per household,so that means around 80 per cent of the population live in a householdwith at least one mobile phone or telephone. It is only people living inthe country or in very remote places with fewer than 2,000 inhabitantsthat are the exception, but in many cases even they will benefit from telecommunications nearby – in most cases they will find access tosome form of communications network within five kilometres of wherethey live.

Logwin Magazine: Only half of India’s total road network of 3.3 millionkilometres is sealed. What’s the outlook for individual mobility over thenext few years? Dr. Dev Sood: We’re facing some tough challenges, especially with theintroduction of the very affordable Tata Nano and other similar smallcars. Major highways connecting the suburbs with the big cities arechoked with commuters. Road design is inadequate and flooding is acommon occurrence especially due to inadequate drainage systems.

Logwin Magazine: The Golden Quadrilateral, the road network thatconnects Delhi, Mumbai, Kolkata and Chennai, is India’s largest high -way construction project, consisting of 5,846 kilometres of four- or six-lane roadway and costing around US$13 billion. It was due to becompleted in June 2009. What is the current status of the project? Andwhat does this network mean for transport in India? Dr. Dev Sood: The Golden Quadrilateral is already out-of-date whenyou consider how much the needs of India’s cities have grown in themeantime. Last week I drove from Delhi to Jaipur. It was stop-start thewhole way, packed with buses, trucks and cars. The trip resembled thejourney I made from Shikou to Guangzhou in the Chinese province ofCanton in 1997. There was a similar degree of industrial development,but in China there was a lot less traffic and the roads were of greater capacity as well.

Logwin Magazine: What means of transport have you used in the last24 hours and what were the costs associated with each of them? Dr. Dev Sood: I used my chauffeur-driven car – petrol costs 1 euro perlitre and I get six kilometres to the litre, so that works out to be 18 centsper kilometre. On top of that, there are the chauffeur’s wages of 5 eurosa day, roughly 65 cents an hour for an eight-hour day. Then you have totake into account depreciation or wear-and-tear on the car. Apart fromthat, I was picked up from the airport in Mumbai today. That cost 10euros.

Dr. Aditya Dev Sood (born 1970) is the founder and

CEO of the market research organisation, the Center for

Knowledge Societies, based in Bangalore and Delhi.

Dr. Dev Sood graduated from the University of Michigan

and received a doctorate in anthropology from the

University of Chicago.

www.cks.in

interview


Logwin Magazine: What is the government’sposition on carbon trading? The UN climateconference is due to take place in Copenhagenon 18 December. What is the official positionon the target of reducing CO2 to pre-1990levels by 2020?Dr. Dev Sood: When Hillary Clinton visited theIndian environment minister, Jairam Ramesh,he restated the view that India bears littleresponsibility for climate change so far. Indus -trial nations would therefore do well not toimpose an emissions cap on India. Neverthe -less people are becoming increasingly awarethat the government must take proactive stepsto restrict carbon emissions, through initia -tives in government research, for instance, and supporting similar initiatives from privateenterprise.

Logwin Magazine: Each year India’s state-owned railways, Bharatiya Rel, convey fivebillion passengers and 350 million tonnes offreight. Why is this transport system not beingdeveloped further rather than there being anemphasis on building roads? Dr. Dev Sood: Industry in India does makeextensive use of rail freight. But there are anumber of challenges – loading and unloadingcontainers from trucks often leads to delays at freight yards. Then there are the costs – thegovernment sets the prices for commercialfreight and the prices change constantly. Thenthere’s just the general complexity and fre -quent breakdowns in the rail network. There

are a number of separate networks, originallybuilt by the British, that are not integrated in ameaningful way.

The landscape is another challenge – railfreight is not competitive in mountainous re-gions such as Kashmir, and a number of othermountain areas cannot be reached by rail atall. Finally, there is inadequate integration bet-ween coal, steel and other primary industriesas far as rail links are concerned.

Logwin Magazine: India clearly has one of thebusiest air transport networks in the world.What are the most significant projects for thecoming year on this front? Dr. Dev Sood: Firstly there will be increasedemphasis on building airports in cities thathave not previously had one. This is part ofIndia’sGreenFieldAirport strategy. Inaddi tion,major new airports such as Delhi, Mumbai,Bangalore and Hyderabad will be privatised.Small private airlines that are not financially viable will be closed down. Major Indian air -lines, such as Jet and Kingfisher, will expandoverseas.

Logwin Magazine: Domestic and interna -tional shipping in India is handled throughtwelve major ports and around 180 medium-sized ports. Which of the major ports will seeespecially dynamic growth over the next fewyears and why?Dr. Dev Sood: That’s an area I’m not all that familiar with. I think that growth in India’sports will be the result of the following factors:Regional areas are steadily being opened up to enable further industrial development. Theissue is meeting consumer demand as well as the needs of the primary industries. Thenthere are various national programs or pro -grams in individual states that relate to de-veloping ports. But often these are not main -tained over the long term. Maximising existingcapacity – can this port grow any further thanit already has? – is also an issue.

Logwin Magazine: Dr. Dev Sood, thank youvery much for this interview. �

Regional areas are steadilybeing opened up to

enable further industrial development.

“

”

interview


focus india

Proximity to our customers and optimal con -nections to international trade were the keycriteria in choosing the locations for Logwin’sbranches in India. The headquarters in Mum -bai, city of 14 million inhabitants, and thebranches in the Indian capital New Delhi andin Chennai, the centre of the south-east, areall in well-connected locations close to air -ports. Pune – around 160 kilometres fromMumbai – is one of the major centres ofIndia’s automotive industry. Chennai is an important port on the Gulf of Bengal, while

NATIONAL SUBSIDIARY ESTABLISHED IN INDIA

Global network keeps ongrowingOwn branches in Bangalore, Chennai, Mumbai, New Delhi and Pune are just the beginning. All the signs are pointing to growth for Logwin’s national subsidiaryin India, which began operating in July this year. A further five new branches areplanned for the Subcontinent over the next twelve months.

Logwin Magazine: Mr Nair, Logwin has al -ready beenactive in India for thepast20years.Why do you think now – in these difficulteconomic times – is the right time to establisha national subsidiary? Vijay Nair: Upuntil now,wehavebeenworkingwith our commercial partners in India on anagency basis. Setting up a national subsidiaryis part of our strategy to increase the emp ha -sis on developing our own business. We offerour customers the advantages of being a logis -tics group with international operations, andat the same time, as a flexible, medium-sizedopera tor, we are in close proximity to our cus -tomers in the region. Although India – just likeevery other country – is affected by the globalcrisis, the economy is still developing in a veryposi tive way here with growth forecast to bebe t ween 6.5 and 7 per cent this year. In thatrespect, now is exactly the right moment toinvest in the future.

“Investing in the future”Vijay Nair is the head of Logwin’s national subsidiary in India. With his com -prehensive expertise in logistics, the 44-year-old knows all the ins and outsof the Indian market.

Logwin Magazine: Which industries do youmainly work for in India and what services doyou provide to your customers?Vijay Nair: Our customers include businessesin the fashionand lifestyle industry, forexample,but also medical supplies, electronics andautomotive industries as well. We assist ourcustomers with a full range of freight servicesas well as individual SCM and outsourcing solu tions.

Logwin Magazine: What challenges doesIndia’s infrastructure pose to logistics opera-tions?Vijay Nair: The volume of freight in India hasrisen rapidly over the past few years. The de-velopment of infrastructure has not been ableto keep pace. To give you one example, thetransit time for ships in Indian ports is aroundthree to four times longer than in Europe orNorth America. On top of that, many Indian

ports lack adequate rail and road connections.The Indian government has recognised thisand is giving high priority to the expansion ofinfrastructure. Through government fundingand with support from private international investors the bottlenecks will be overcome. �

Bangalore is an internationally renowned ITcity. The branches planned for the future willconsolidate Logwin’s network even further.

Better service throughexperience

Logwin endows its new national subsidiarywith 20 years of logistics experience in theIndian marketplace – valuable expertise thatthe 80 staff put to good use on every customer

project. In terms of organisational structure,Logwin Air + Ocean India Private Ltd. formspart of the business unit South East Asia(SEA). �

Vijay Nair, Managing Director Air + Ocean India

LOGWIN IN INDIA

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QUICK CONNECTION

India’s informationsuper highway Simply amazing: IT connectivity with the new branch offices in Indiawas achieved with virtually the press of a button. The centres inBangalore, Chennai, New Delhi, Pune and Mumbai were furnished with all applications right from the start.

New branches, tried and tested IT structure

The new branches could be connected withvery little installation effort thanks to the ‘thin clients’ utilising a virtual private network(VPN). “We only had to ensure the existence ofan appropriately broad Internet connection”,explains Andy Nutz, Director of InformationTechnology in the Logwin business segmentAir + Ocean. “As India’s cities have good ITinfrastructure with the appropriate broadbandcapacity, connecting to the computer centre inLuxembourg took very little time.” Thanks tothe broad information superhighway, accesstimes for users abroad are similar to those forEuropean users.

Central, standardised, powerful

Logwin is structured essentially in terms of itsIT. The Luxembourg computer centre providesall encompassing infrastructure with a stand -ardised application environment and a com -mon database for globally identical IT servicesand system availability. There are numerousadvantages to this standardised server farm,including higher data throughput rates, maxi -mum security, redundancy prevention andlean processing. If a software update is neces-sary, this only needs to be done once to be im-mediately available worldwide. “These days ahigh performance network can only be createdusing centrally controlled and uniform IT struc-tures encompassing the highest business pro-cessing standards”, according to Andy Nutz.“Consequently, activating new branchesaround the world is also a dream that can berealised in no time.” �

Plug and play – an Internet connection was allthat was required to network the Indian officeswith the Logwin computer centre in Luxem -bourg. The computer centre has all applica -tions on standby. This means that customersin India have access to every tool, from ship -ping and product orders, goods receipt alerts,and product delivery instructions to the trans -mission of status information and electronicinvoicing. There are also several special toolsavailable. For example, the “Logwin Bots” sup-ply chain management tool can be calibratedindividually to the needs of our Air + Oceancustomers and is available in five languages:Chinese, German, English, Portuguese andSpanish.

All relevant documents such as for instancepacking lists and commercial invoices can beaccessed online. Customers are able to enterbookings directly around the clock, allowingpaperless processing of transactions.

Global transparency

All Logwin sites offer the same transpa rency.All information regarding shipments can be viewed online, including a virtual inspection of individual containers. Documentation of purchase order transactions extends to thelevel of individual items. Similarly, packing lists,certificates, bills of lading and airway bills andtheirdocumentationarealsomanageddigi tally.Tracking and tracing of air and sea freight ship-ments not only allows customers to deter minethe current location of their consignment, butthey also receive proactive reports, e.g. withTracking Events (change in shipment status) ora new purchase order status being generated.

In India, access to the Internet firstbecame available in 1995. But it wasn’tuntil the monopoly of state-ownedVidesh Sanchar Nigam Ltd. came to anend in 1998 that things really took off. By 1999 the number of individual Inter net connections had doubled to280,000; by 2004 the total had climbedto 39.2 million. At the end of 2008,records indicated there were 81 millionInternet users in India. While that sounds like a lot, it still only represents 7 per cent of the entire popula tion.

JUMPING INTO THE NET

focus india


The leaders of the BRIC countries at their first summit in June 2009 (from left): Luiz Inácio Lula da Silva (Brazil), Dmitry Medvedev (Russia), Hu Jintao (China)

and Manmohan Singh (India)

BRIC IS BACK

The fantastic four From troubled kids to star performers: In the wake of the catastrophe on the world’s stock exchanges in 2008, the four BRIC countries – Brazil,Russia, India and China – are the major beacons of hope in the crisis withvery buoyant share markets.

The BRIC countries are seen as the mostpromising emerging markets. Roughly 40 percent of the world’s population, i.e. 2.8 billionpeople, live in these four newly industrialisedcoun tries. The term BRIC was coined in 2003by Jim O’Neill, a strategist with the US invest -ment bank Goldman Sachs. According toO’Neill, the People’s Republic of China wouldpass the USA as the world’s most powerfuleconomy. Today, just six years later, the talk is of 2037. Then, according to the forecast, the new world order will be dominated by theMiddle King dom, together with India, Brazil and Russia.

Four countries, one superpower

In June of this year the BRIC heads of state,Luiz Inácio Lula da Silva, Dmitry Medvedev,Manmohan Singh and Hu Jintao met in theRussian city of Yekaterinburg for the first timefor a joint summit. In addition to some diffe -rences, there was one point upon which allagreed: Nothing in the world will function with out them in future. Selfconfident, they are demanding a new global monetary system.They argue that the inter national financialinstitutions must adapt to the modified globaleconomy. The countries have called for astable and predictable monetary system, atleast indirectly supporting a reduction in therole of the US dollar as the reserve currency.The BRIC superpower ap pears to be emanci -pating itself from the USA during the global crisis.

Grass fire or long burning issue?

Together, the BRIC countries currently gene -rate 15 per cent of global economic outputand are responsible for 13 per cent of interna tional trade. With US$2.8 trillion, they alsohold almost half the global reserves of foreigncur rency. In re cent months the BRIC stockexchanges have left the sharemarkets in theindustrialised countries in their wake. Never -theless, expertsdoubt that the largeandnewlyindustrialised countries are fully detachedfrom develop ments in the industriali sed world.Although their domestic demand has in -crease d con side rably, their internal marketscan only partially compensate for the huge decline in exports. The BRIC quartet has neverdisen gaged itself from the industrial countrieson the stock exchange as the global financial markets are too closely interwoven with eachother.

In accord: Indian tiger andChinese dragon.

The economic relationship between the BRICpartners India and China, which also share acommon border, is especially strong. Tradeagreements underlining their common eco -nomic interests have existed since the1980s.The volume of trade between the two mostpopulous countries in the world is currentlyestimated to be worth around US$30 billion.Following the USA, China is India’s most im -portant export partner, with the neigh bouringcountry occupying the number one spot forimports. Popular Chinese exports include machines and electronic appliances. India’strade consists primarily of mineral oil prod uctsand textiles, but also IT services and softwareproducts. Numerous Indian companies, for instance in the automotive or pharma ceu ticalindustry, have relocated their activities toChina. �

interview


On the same wavelengthWorking together for over 40 years – that counts for a lot in the business world. Logwin Magazine asked John Sobeck,Head of Logistics for ZF Friedrichshafen AG, about the ingredients for success. How does a collaborative partnership continue to be effective over so many years? And what does the future together look like?

Logwin Magazine: ZF has been working withthe logistics provider Logwin for 46 years now.How did the relationship begin and what is thesecret to this long-term partnership? John Sobeck: The two companies beganwork ing together years ago with dispatch deliveries for Fichtel & Sachs. From that timeon, a relationship of trust has been built upover the years. Right up to the present day, the secret is consistently high-quality serviceat competitive prices, and the willingness tocontinue developing with us.

Logwin Magazine: What effect has thecurrent realignment at Logwin had on you?John Sobeck: The realignment doesn’t haveany significant effect on us – it’s happeningbehind the scenes, so to speak. What counts is the quality of the logistics service, both interms of freight forwarding and production-related value-added services. And Logwin getsit right.

Logwin Magazine: What does the automotiveindustry require of logistics providers? To whatextent have the logistics requirements changedover the last few decades?

John Sobeck: At first it was straight deliveryservices that were the main focus. From the80s onwards, we’ve been making greater useof logistics services. The biggest change hascome about through IT. It’s only when the flowof goods is accompanied by a real-time flow of information that we are able to react withthe speed we need to remain competitive. Putting it all into practice remains as impor -tant as always – we source parts from morethan 2,500 suppliers all over Germany. Thecoordination of the various logistics processeshas to run like clockwork.

Hybrid technology on the move: Dynastart, the 15 kW electric device madeby ZF Sachs, is incorporated into MercedesBenz’s S400 Hybrid and BMW’s ActiveHybrid 7.


John Sobeck, Head of Logistics ZF Friedrichshafen AG

Logwin Magazine: What are the value-addedservices that are of particular interest to you?John Sobeck: As you’d expect, it’s thoseservices that require special knowledge of theindustry and a particular level of experience.That includes production-related logistics services such as on-site logistics for runningour parts warehouse, developing custompackaging solutions and operating the

distribution warehouse for ZF Sachs near theSchweinfurt production facility. From thereLogwin supplies 40 assembly facilities andmanages all aspects of coordination and dis -patch, from warehousing and configuring thekanban system right through to electronicjust-in-time delivery, stock control and con -tinuous inventory. But also, managing emptycontainers, organising container loading andprovisioning, which includes supply controland freight management, are all important elements.

What counts is the quality of the logistics service, both in terms of freight

forwarding and production-related value-added

services.

Logwin Magazine: With the addition of newareas at the beginning of the year Logwin hasbecome your sole freight forwarder for Ger -many. What are the advantages of bundling allthese services together?John Sobeck: ZF is pursuing a clear strategyof standardising our processes with a highdegree of automation. This requires a highlevel of integration between the IT systems ofall parties involved in these processes. Withthis in mind, we are keen to work in closercollaboration with just a few service provi ders.Logwin had previously been our freight for-warder in eight postcode regions. As we werehappy with their service, it was an ob viousdecision to assign the other areas to Logwin as our logistics partner. Consolidation wasanother key factor – Logwin bundles singledispatch items and smaller partial loads for us at the central hub in Gochsheim.

Logwin Magazine: ZF ranks amongst theworld’s ten largest automotive industry sup -pliers. What is your strategic focus – speakingin relation to the current economic situationas well – to maintain and build upon thisposition?John Sobeck: The current economic situationhas had a particularly severe impact on theheavy commercial vehicle market. At thepresent time we are focussing on developing

The assembly of ZF Friedrichshafen AG’s Ecolife/Ecomat commercial vehicle transmissions is aprocess which demands the utmost precision.

THE ZF GROUP

ZF Friedrichshafen AG isone of the world’s lead-ing automotive industrysuppliers, specialising inengine and vehicle tech-nology with 125 production sites in 26 countries. ZF employs around 61,000 workers, including around24,600 outside Germany. In 2008, ZF recorded sales of 12,501 millionEuros.

Logwin’s staff are responsible for coordinatingvarious elements in the logistics chain – from freightforwarding right through to a range of production-related value-added-services.

“

”

our products with more efficient and more en-vironmentally friendly fuel saving technology.

Logwin Magazine: Mr Sobeck, thank you verymuch for this interview. �

14

sprinter network

SPRINTERS NEVER SLEEP

Night and Day and Night and DayIn the beginning there was the (printed) word: He who reads the morning newspaper starts the day well informed. To ensure that printed products arrive for their readers hot off the press, Logwin has developed the “Sprinter Network”.Overnight vans deliver printed products and other vital documents to their destinations. But the logistics service wouldn’t live up to its name if it wasn’t constantly on the lookout for synergies: Why not use the vehicles during the day as well? For example, for the same day delivery of original parts to automotive dealers and workshops.

www.logwin-logistics.com – Logwin Magazine – 02|09


Cars must be driven

Stefan Berger, an employee in the field for an agricultural machinerymanufacturer covers 2,500 km each week. Today his company car is due for a service. His BMW is booked in at the workshop for eighto’clock on the dot. The car must be ready again at 1 p.m. – then off tothe next customer. At 9:30 a.m. the head mechanic calls: “Mr Berger,have you noticed the crack in the rear window?” A repair is no longer areal option. Whether they should replace the window? “Have you gotan original window in stock?” asks Mr Berger. No, but they could get

The Sprinter Network has been a media success story. Anyone buyingthe DIE WELT newspaper at the train station or receiving the Handels -blatt business daily on a plane is doing so thanks to Logwin’s logisticperformance. The basis for the flexible, reliable delivery: Clever sched -uling, professional drivers, access to a large fleet of modern ve hiclesand 11 locations throughout Germany. But it is not only printed prod uctsand other vital documents that need to arrive safely and quickly: Rapiddelivery is also decisive in the automotive world. Why? Let’s have acloser look ...

Print media hot off the presses or genuine spare parts in a hurry – over 500 Sprinter vehicles provide rapid, reliable deliveries around the clock.


sprinter network

16

sub-contractors for a number of years. The advantage is not only interms of trust, but above all experience. The drivers know how to avoidtraffic jams and where they need to leave consignments with each re -cipient.” The drivers return between 3 p.m. and 5 p.m. The last sprinteris now ready at the agreed changeover point to be deployed on itsnightly media shift.

Evening printing, nightly delivery, morning read

Hundreds of vans pick up printed products from printing houses andpublishers right across Germany every evening on behalf of Logwin,operating like a relay. The vehicles that have just picked up printedmaterials and delivered them to one of the Logwin distribution centres,then set off shortly after to railway stations, airports,media wholesalersand Post Office mail centres to deliver the newspapers. “We bundle the consignments in our distribution centres”, explains Lutz Westphal,project manager for Logwin’s Transport and Retail Networks businessunit. “The consignees receive magazines and newspapers from variouspublishers and printing houses. We bundle the specific media for eachrecipient from the deliveries we receive in our logistics centres.”

For example Neu Isenburg: 200 vehicles are deployed for Logwincustomers from 6 p.m. until the early hours of the morning. “The driverscome from the Frankfurt/Main region”, says Lutz Westphal. “This hugearea is where the Frankfurter Rundschau, DIE WELT kompakt, Hürriyetand other publications are printed for domestic and international con -sumption.” The printing and publishing houses are only a stone’s throwaway from the Logwin facility. On average it takes 15 minutes for thesprinters to return with their freight. As soon as the consignments havebeen assembled, the drivers deliver to the railway station kiosks inDarmstadt first, then the press wholesaler in Langen or Frankfurt Air -port - the scheduled routes are planned in accordance with the needs of individual customers. “The newspaper must be there when the shopsopen in the morning”, declares Lutz Westphal. “Currency counts morethan ever before in the Internet age. If the front page needs to be modi -fied in response to breaking news immediately prior toprinting, logis ticscompanies need to respond accordingly.” Logwin’s Sprinter Network isso flexible that urgent and/or immediate consignments arrive reliablyand quickly. In this case the secret lies largely in its size: Logwin has somany vehicles and drivers across Germany that it is able to respondspontaneously anywhere. �

one, the head mechanic assures him. Within the next three hours, guaranteed. How is that possible?

A quick response in the automotive world is not the exception, butrather the rule. “A stationary vehicle costs money”, states Kai Albus,Head of Logistics Engineering|Warehousing Industrial at Logwin. “Regardless of whether it is a company vehicle or a private one, rapidrepair is always the most efficient solution. This is because when thecosts associated with a rental vehicle are included, things can getexpensive.” Mr Berger won’t need a replacement vehicle. After the call the head mechanic immediately orders the new rear window fromthe regional BMW warehouse. The logistics service provider Logwin isresponsible for de livery: When the Sprinter leaves the yard for the nexttour at 10:45 a.m., the original part is already on board. This Logwinservice even has its own name: “PartsDirect”.

One example: Original parts distribution fromBerlin

The logistics provider operates 40 routes from Berlin for BMW. Thestarting point is the Dealer Metro Distribution Centre (DMDC) at No. 4Naumburger Strasse. Within 15 minutes the van has been loaded withoriginal parts of every size and type. Small items are packed in cratesand all consignments sorted according to their recipients.

The sprinters have a fixed route. But no driver turns the key until hehas gone through the current schedule very carefully. This is becausevariations due to urgent orders such as the one for Stefan Berger arenot uncommon. Sometimes, other consignees are added to the list orcertain regulars are absent when they are fully stocked at the presenttime.

Each driver will have visited up to 15 car dealers and workshopsalong a route before he pulls up at the DMDC site again. The sprintersset off from here a total of seven times; the first tour starts at 8:45 a.m.,the last at 2:45 p.m. Some dealers may receive deliveries four times a day, others twice, and some only once depending on their needs. Sometimes drivers cover up to 450 km.

Logwin only employs sub-contractors with their own vehicles forthe Sprinter Network. A groomed appearance applies equally to bothequipment and personnel. “Ultimately we are representing ourcustomers at the dealers’ premises”, says Kai Albus. “Consequently,we also value continuity: We have been working together with most

SPRINTER NETWORK – FEATURES AND SERVICES

� Fixed and exclusive routes in response to customer requests

� Centralised fleet planning for maximum availability

� IT tools for planning, monitoring and evaluating the routes;Reporting

� Regional service centres ensure local presence

� 26 locations in Germany, the Czech Republic and Poland

� 200 employees

� Over 500 Sprinter vehicles


projects

17

An Airbus engine as a passengerEvery car owner knows how important regular maintenance and inspections are. As we’d all expect, the bits and piecesthat make up an aircraft also undergo routine checks and are sent for servicing when needed. An airline in India relies onthe expertise of SR Technics in Zurich for the crucial maintenance of its aircraft engines.

SR Technics is one of the world’sleading independent providers oftechnical services in the civil aviationsector. Each year, SR Technics looksafter around 800 aircraft, 300 enginesand 78,000 components for its 500clients.

SR TECHNICS

After servicing, the Pratt & Whitney PW4168 turbofan engine that powers an Airbus A 330 needsto find its way back to India as quickly as possible. No easy task for a cargo item that weighs8,500 kilograms and is over five metres long. “The biggest challenge is to avoid downtime for the Airbus and find a suitable air freight connection quickly,” says Jeanne Graf from Logwin’s air freight office in Zurich. “We engaged Singapore Airlines to handle the transport.”

Weighty passenger

The Logwin team in Switzerland first trucked the aircraft engine to Brussels just over 500 kmaway. Appropriately packed for air transport and securely stowed in the belly of a Boeing 747,the mammoth consignment embarked upon the second leg of its journey to India. After an 8-hour flight the XXL item reached its destination of Mumbai on schedule and in perfectcondition.

Jeanne Graf: “This job involved a lot of organisational effort. It wasn’t just a heavy freight item;because of fuel and lubricant residues, it also qualified as hazardous goods. On top of that, wehad to deal with long and involved customs processing in India.”

Stage one complete: Vincenzo Ballatori from Fischer Road Cargo and Logwin Export staff member, Jeanne Graf, ensured the massive engine arrived in Brussels on time.


SPEEDY SPARE PART FOR BELUGA SHIPPING

530 m below and 112 degrees east.In 1440 minutes. A consignment for a shipping customer from Vorarlberg (Austria) to the mouth of the Yangtze is nothing strange in itself.But when it is flagged as being “at very short notice” and “extremely urgent” then it is a case for Logwin’s Ship PartsLogistics specialists.

Hamburg, 13th August 2009, 10 a.m.: Stefanie Räuscher, Export Manager inLogwin’s Hamburg airfreight office, takes the call. On the other end of the line is KatrinKrone from Beluga Shipping GmbH in Bre -men. The motor vessel “Beluga Constellation”,a multi-purpose heavy lift cargo ship in theBeluga fleet, desperately needs a new shaftfor one of the two heavy duty cranes on board.The challenge lies in the fact that the ship isin Shanghai, while the requisite part is in Nen- zing (530 m above sea level) in the AustrianAlps. Furthermore, the “Beluga Constellation”will only be docked in Shanghai for two moredays. Consequently, the replace ment partabsolutely must arrive within 24 hours.

Feldkirch, 13th August 2009, 10:30 a.m.: Stefanie Räuscher has the coordination undercontrol.She immediately informs her colleague,Tobias Holderied in the Austrian town of Feld -kirch. He arranges the urgent pickup of the consigned express item from the supplier inNenzing 50 km away. Then Tobias Holderiedand his team check whether the part is suitablypackaged for the flight and apply airfreight andexpress labels to the consign ment. At the sametime they have already prepared the transportdocumentation.

Feldkirch, 13th August 2009, 3 p.m.:The special consignment sets off from Feld -kirchheaded for Frankfurt Airport. Thedelivery

deadline is 8:05 p.m. – time enough for the500 km trip under normal circumstances. Butthen: Traffic jam on the A8 motorway at Stutt-gart! Nothing is happening and the scheduleis under severe pressure. The Logwin team inHamburg is inconstant contact with thedriverand Lufthansa, who are to fly the replacementpart to Shanghai. They do everything possibleto ensure that the consignment can still go onboard despite the delay.

Frankfurt, 13th August 2009, 9:50 p.m.:The consignment reaches Frankfurt airportalmost 2 hours behind schedule, but the Lufthansa aircraft is still waiting. 12 hoursafter the initial phone call in Austria, theplane lifts off for Shanghai with the shaft stowed sec ur e ly on board.

Shanghai, 14th August 2009, 3:20 p.m.:Flight LH 732 lands in Shanghai on time. Thecustoms formalities organised in advance gowithout a hitch, so the “Beluga Constellation”crew are able to take receipt of the consign -ment shortly afterwards. “Assignments suchas this are routine for our Ship Parts LogisticsTeam, but are still always something special”,explains Stefanie Räuscher. “Unforeseencircumstances really motivate us!”

BELUGA SHIPPING GMBH

Marintec China 2009

Logwin will be exhibiting at “MarintecChina” in Shanghai from 1-4 December2009. The trade fair has been held for thelast 28 years and is regarded as one ofthe most important maritime businessexhibitions.

www.marintecchina.com

projects

Founded in Bremen in 1995, BelugaShipping GmbH can now be found in13 locations worldwide with around 475 staff. As a project and heavy goodsspecialist, the shipping company cur -rently has 66 multipurpose heavy liftcargo ships with a crane capacity of upto 700 tonnes, but this will increase to 1,400 tonnes by the end of the year.They transport all kinds of XXL freight to every harbour on the planet, includ-ing those far from the standard traderoutes. The consigned goods includeharbour cranes, wind power systems,generators, turbines and luxury yachts,but also entire factories.


annum change transport containers in Lud -wigshafen and Weiden – and the trend isupward. The packaged goods deliveries thencontinue their local or international journey to their consignees in silo trucks. We have 60of our own silo and tank vehicles available forpan-European land transport, as well as over150 subcontracted vehicles permanentlyunderway for Logwin. �

Almatis, a leading supplier of high-quality alu -minium oxide materials, is one good example.“Our customer Almatis is only a stone’s throwaway from our facility in the Ludwigshafenindustrial estate, only about 8 m from door todoor”, explains Klaus Wolf, Branch Manager at Logwin in Ludwigshafen. When the storagecapacity at Almatis does not suffice, Logwinhelps out: “We fill the aluminium oxide pro-d ucts into so-called big bags”, explains AstridLindner, Manager Transport & Logistics andTolling at Almatis. “These can simply be stap -led for interim storage purposes.” Dependingon the volume and customer requirements,the material can be transported either in thebig bags or in silo vehicles. “At the time ofproduction it is often unclear whether the consignee requires the product in bulk orpackaged”, explains Wolf. Logwin refills thecontents accordingly.

Clever alternative

Whether chemicals, building materials orminerals, siloing raw materials has become fashionable as an alternative to pure silo trans-portation. “This intermediate step allows us to cater better to the project-related require -ments of our customers”, explains Klaus Wolf.

“For example, the distance between the pro-d uction site and consignee are too large for direct transportation in a silo container in thecase of intercontinental dispatches. There -fore, the bulk goods are packaged and packedon pallets in shipping containers.”

Paper and foil sacks, octabins or big bagsare suitable for packaging loose bulk goods.Stable plastic big bags are primarily employedfor transporting lightweight bulk goods andconstruction materials. They come – some pal-letable – in different sizes ranging from around500 to 2,000 litres.

Individual storage andtransportation

Logwin transports packaged and unpackagedgoods for customers, including those in thechemical and construction industries. Thepackaged goods are refilled, stored and/or siloed in Ludwigshafen or Weiden. BothLogwin facilities have pallet storage spacesfor powdered and granulated products. “Ourspecial equipment allows us to refill any typeof goods from packaging into silo containersappropriately for each product,” says KlausWolf. “We prevent impurities by using inter -mediate sieves.” Around 20,000 tonnes per

SILOING AS A LOGISTICS STR ATEGY

From bulk to packaged goods and back At first glance, the use of silos for storing and/or transporting bulk goods would always seem to be the right choice. The large capacity of silo-type containers would appear to provide maximum utilisation. However, it often makes sense to switch within the supply chain – namely, to refill bulk material from silos into packaging and then back again (siloing).

Almatis GmbH is a leading supplier ofhigh-quality aluminium oxide materials.Among other things, these are used formanufacturing fire resistant products,ceramic goods, papers, coatings and for polishing. Almatis employs 900 staffin 20 locations worldwide. Productionfacilities are found in China, Germany,India, Japan, the Netherlands and theUSA. The company’s headquarters arein Frankfurt am Main.

ALMATIS GMBH

Lai Bou Leong: Our responsibilities encompass business in Singaporeand Brunei, which is deemed to be a single business unit. Each businessunit is responsible for business development and overall Profit and Lossaccountability for the territory under its care. The business units coope-rate closely with one another with regards to regional manufacturingand procurement initiatives.

Logwin Magazine: Are there special regional characteristics whichneed to be taken into account in these countries? Lai Bou Leong: The practice and standards in delivering dialysistherapy are fairly universal. Local factors such as affordability ofpatients and payors, healthcare infrastructure and access to health-


Logwin Magazine: Fresenius Medical Care has branches in over 100countries. What makes your company stand out?Lai Bou Leong: FME is the only global company which offers bothproducts and services for the entire dialysis – medical care continuum.We have successfully combined our position as technological leaderwith clinical as well as nursing expertise and therefore offer extensivecoverage of both the goods and services segments.

Logwin Magazine: 2008was another successfulfinancial year for FreseniusMedical Care. What is yourcurrent position and howmuch have you been affec-ted by the global financialcrisis? Lai Bou Leong: In Singa -pore, our customers havebeen more cautious inspending, especially on capital expenditure. This is due to the fact that ourbiggest customers are the Voluntary WelfareOrganizations (VWO’s)which depended on spon -

sorships and donations for their funding. The impact continued on intothis year, and we expect recovery to begin in the second half of nextyear.

Logwin Magazine: What are the focal points of your activities in Singa -pore and/or Malaysia? What is the situation vis-à-vis business develop -ment in this region?

Lai Bou Leong is Managing Director ofFresenius Medical Care Singapore

TALKING TO L AI BOU LEONG

Leading through innovation Fresenius Medical Care (FME) is the world’s largest, vertically-integrated supplier of products and services for people who have to undergo dialysis because of kidney failure. Logwin Magazine talked to Lai Bou Leong, Managing Director ofFresenius Medical Care, Singapore, about the company’s current business development and the special characteristics of the South East Asia market.

FRESENIUS MEDICAL CARE

Fresenius Medical Care (FME)– the largest company underthe Fresenius HealthcareGroup from Bad Homburg(Germany) – is world marketleader in dialysis therapies and products. FME looks afteraround 190,000 patients withchronic kidney failure in anetwork of more than 2,400dialysis clinics in NorthAmerica, Europe, Asia, LatinAmerica and Africa. Thedialysis specialist maintainsover 30 interna tional produc -tion facilities and sells its

range of goods and services in over 100 countries world -wide, with its largest market in the USA. Its busi ness activi -ties worldwide are divided intotwo areas: North America andthe international market withthe following three regions:Europe/Middle East/Africa,Asia-Pacific and Latin Ame ri ca.FME employs around 65,000employees altogether.

interview

care interplay to influence the state of dialysisservice provision in each country.

Logwin Magazine: What special demands doyou make of your logistics service providers? Lai Bou Leong: Our customers’ expectationsand requirements determine the demands we make of our logistic service providers. Weexpect timely and reliable delivery servicesand that additional resources be available forhandling urgent and short-term requests –whether this concerns the ordering of a pro d uct or a request for service.

Logwin Magazine: What are the greatestchallenges for your industry in your opinion?Lai Bou Leong: Our company has given it-self the task of improving the quality of life ofpatients with kidney failure all over the world.We feel it is very important to offer patients achoice – they should be able to choose wherethey want to be treated and what methods areused. Our activities in product developmentand service innovation reflect this philosophy,as does our holistic approach to patientmanagement. To achieve this, our knowledgemust always be up to date; we must be able to respond quickly to changing needs and thelatest trends. A like minded logistics partner – such as Logwin – helps us meet thesechallenges.

Logwin Magazine: Mr Lai Bou Leong, thankyou very much for this interview. �

Our knowledge must alwaysbe up to date and must beable to respond quickly tothe latest developments.”

Innovative technologies and treatment strategies can improve dialysis patients’ long-term quality of life.

Singapore and Malaysia are separatedonly by the 1 km wide Straits of Johor.In economic terms, they are growingever closer together. Here are thePetronas Twin Towers in Kuala Lumpur, the Malaysian capital.

“

Thanks to their level of product diversification, both countries have beenable to succeed in our now globalised world. The 700 square kilometreisland of Singapore has developed a highly industrialised and successfulfree-market economy in a short space of time. Malaysia has undergonerapid development from an agricultural goods supplier in the 1970s toone of the leading trading nations for electronic and IT products today.However, it is this focus on exports that has exposed both countries tothe dangers posed by the global financial crisis. Singapore and Malaysiawere badly affected, but current developments give rise to hopes of arapid turnaround in its wake. Singapore’s economy grew by 20 per centin the second quarter of 2009 in comparison with the previous quarter.And Malaysia is also anticipating an upturn in 2010 at the latest.

Majulah Singapura – Onwards, Singapore!

Open to the world, corruption free and internationally networked: Theseattributes have paved the way for Singapore’s successful economic development. With a population of 4.6 million on one main island, threelarge and 56 small islands, the city state has little land – Singapore isslightly smaller than Hamburg. This means that it has no significantmineral resources or agricultural produce to provide an economic base.

Consequently, Singapore focused on the technology and service sectorvery early on and has been able to leap from being a developing countryto an industrial nation within a single generation.

Singapore depends on the importation of raw materials and semi-manufactured goods. It is notable that about 96 per cent of all importsare tax free, the exceptions being automobiles, alcohol, petroleum and cigarettes. The most important import and export products are ma chines, electronic products and chemicals. Its main trading partnersinclude China, the EU, Malaysia and the USA. Its traffic-friendly loca-tion and outstanding harbour infrastructure have made Singapore theworld’s leading maritime transhipment centre. Majulah Singapura –Onwards, Singapore! The city state truly embodies this election slogan.

Malaysia: The future in its sights

Malaysia is regarded as one of the most economically and politicallystable countries in South East Asia. An open, export-oriented economy,a young well-trained population and large oil and gas reserves are justsome of its impressive credentials. Furthermore, as the world’s leadingmicrochip exporter Malaysia is an A-League nation in terms of IT andelectronics.


SINGAPORE AND MAL AYSIA

Tigers leap again The term “Asian Tigers” was coined in the 1980s for South Korea, Taiwan, Singapore and the former British crown colony ofHong Kong. Their economic dynamism was reminiscent of a leaping tiger. Indonesia, Malaysia, Thailand and the Philippineshave also long been flagged as large cats of the future. The South East Asian countries of Singapore and Malaysia are parti-cularly exciting in various regards.


The South East Asian state consists of two parts separated by the South China Sea:The western part on the Malaysian peninsularand the eastern part on the island of Borneo.The Strait of Malacca, running between theMalay sian peninsular and the Indonesianisland of Sumatra, is one of the most heavilytrafficked sea routes in the world. Almost 26million people live in Malaysia, with more than2 million in the capital Kuala Lumpur.

The “Vision 2020” describes Malaysia’sgoal of achieving the status of a developedindustrial nation by 2020. At the same time asmeasuresarebeing taken to reduceMalaysia’sdependence on exports and boost domestic

… it is prohibited for the highly odorousdurian fruit (also referred to as “stinkfruit”) to be taken onto public transportand into buildings in Singapore and Malaysia? But officials generally tend notto enforce the law as the spiky fruit is so popular. This is also evident in a curiousbuilding: The “Esplanade”, a cultural centreon the Singapore River opened in 2002, isshaped like a durian and is therefore betterknown under this name in Singapore.

… Malaysia is a nation of records? Until2004 the Petronas Towers in Kuala Lumpurwere the highest buildings in the world at452 m. Although they are now eclipsed by two skyscrapers in Taipei (508 m) andDubai (818 m), they are still the tallest twintowers in the world. Malaysian Airlines iscurrently workingonanew record-breakingproject: The largest unsupported hangarstructure in the world is currently beingbuilt at the south end of Kuala Lumpurairport. And the “Kelana Jaya Line” in KualaLumpur holds the record for the longest driverless local transportation route in theworld.

DID YOU KNOW THAT . . .

SINGAPORE AND MALAYSIA

Penang

Johor Bahru

MALAYSIA

SINGAPORE

Kuala Lumpur

INDONESIA

INDONESIA

THAILAND

country report

200 kmSingapore� Population: 4.6 million � At 700 sq. km, smallest country in South East Asia� The world’s largest container port: 30 million TEU

handled in 2008 � The world’s fifth largest merchant fleet with 1,292

ships

Malaysia � Area: 330,000 sq. km � Population: 25.7 million � Well-developed transport network: 98,721 km of

roads, 1,890 km of railways, 7,200 km of shippinglanes

� Strategic location on the Strait of Malacca and thesouthern part of the South China Sea

S OU

T H C H

I NA

S E A

demand, the country is also focusing on ex -panding the production, services and tourismsectors.

Strong association

Singapore and Malaysia play a major role in ASEAN (Association of Southeast Asian Nations). The other member countries areBrunei, Indonesia, Cambodia, Laos, Myan -mar, the Philippines, Thailand and Vietnam.Singapore’s aim is to increase its foreignpolicy role as well as its export markets andinvestment opportunities in the region.Malaysia is looking to foster closer coopera -tion between the ASEAN countries and ex -pand cooperation between ASEAN and the

East Asian partners of China, Korea andJapan (ASEAN +3). At the same time,Malaysia is calling for a common EastAsian economic region, their ownmone tary fund and a common cur- ren cy in the distant future. �

newsflash


White goods on board again

The household appliance specialist Elektra Bregenz/Beko is onceagain a Logwin customer after an 18-month break. Customersatisfaction surveys and efficiency tests conducted by the longestablished Viennese company tipped the scales in their decision to return to this logistics service provider. Elektra Bregenz hassupplied household appliances to the Austrian market for over 100years. At the 1893 World Fair in Chicago the company exhibited thefirst fully electrified kitchen. The white goods company’s range nowextends from free standing and in-built appliances to hot watersystems – including solar powered ones. �

WELCOME BACK!

GLOBAL SANDALS

Bright new world

These rubber sandals manufactured by Alpargatas have been aregular part of the scenery in their home country Brazil since1962.Now Havaianas® (Portuguese for Hawaiians) flip-flops have alsoreached the streets and beaches of Singapore and Malaysia. TheSingapore-based fashion house Moda Pacifica has obtained theexclusive licence to market the colourful flip-flops, modelled ontraditional Japanese footwear made from rice straw. With Logwin’sassistance, the first pair went on sale on Orchard Road, Singa -pore’s favourite shopping street, at the end of June. Logwin is alsotaking care of shipping the Havaianas from Brazil as well as ware -housing and ensuring a regular replenishment of outlets and shopsin Singapore and Malaysia. �

Cool British Styles

The fashion firmAmericanaLtd. fromtheEnglishcityof Manchesterhas had its Bench range of clothing brought to market, warehousedand handled by Logwin since late 2008. From its clothing logisticscentre in Nuremberg, Logwin supplies retailers and Bench storesin Germany, Austria, Switzerland and the Benelux region. Logwinalso provides various value-added services for the distinctiveurban lifestyle brand, including labelling, additional packaging andretail security systems.

From 2010, the latest Bench styles will also make their way intostores in southern Europe and Scandinavia via Logwin in Nurem -berg. Bench’s resounding success on the Continent saw its need for warehousing space triple within a short period of time. �

FASHION LOGISTICS


newsflash

OPEN AND SHUT

Qualified staff found fast

A company’s success is largely based onqualified, motivated and loyal employees.Finding well-trained, expert staff at theright time can deliver competitive advan -tages. Logwin Solutions Personnel Ser -vices GmbH has specialised in providingreliable, flexible temporary staff and per -manent placement services. The humanresourcesexpertsplacearound180highlyqualified logistics employees for technicaland commercial roles across Germanyfrom their Hamburg, Dingolfing andHeppenheim offices. �

PERSONNEL SERVICES

20,000 m above the floor

A highly specialised, overhead rail transportation system has been installed in Logwin’s textiles logistics centre in Mönchengladbach (Germany). The multi-storey, 20,000 m rail system above an area offering around 34,000 square metres of storage now provides spacefor handling up to 100 million hanging garments per annum. This is made possible by around16,000 trolleys. Such a carriage trolley holds up to 60 garments. With the aid of the newconveyor system, the goods can be transported, stored, buffered and selected 24/7 in ac -cordance with customer requirements. Additional services such as sorting, quality controland labelling round out the service. �

MODERN CONVEYOR TECHNOLOGY

Oversized puzzle

Uhde Inventa-Fischer, a ThyssenKrupp Group company, is building a polyamide manufac tur -ing facility for a customer in the Belarusian city of Grodno. Among other things, this syntheticmaterial is employed for industrial yarns. Logwin transports the building components for theproject to Belarus from Germany, Austria, Denmark and Lithuania. In addition to the 65 truck-loads, several oversized transportation vehicles are required. Two extractors – each around24.5 m long, 4 m wide, 3.9 m high and weighing 19 tonnes – have already successfullycompleted the trip from Austria. �

HEAVY TR ANSPORT

Comfort at the push of abutton

French manufacturer Somfy is the marketleader in drive systems and controllers for roller shutters, sunshadesandgates.Now the company is taking the market bystorm inGermanyandSwitzerlandaswell.Every day Logwin is at work ensuring sup-ply to specialist dealers and arrangingspare parts exchanges between Somfy’slocations in France. Logwin has also beenresponsible forproviding regulardeliveriesof Somfy products in Italy and Spain forthe past four years. �


newsflash

Next generation on serviceIt’s something most young tennis players dream about – to one day take part in an ATP tournament. In June this year, a number of up-and-coming players got right in amongst the action when they took part in the Gerry Weber Junior Open, held in the German town of Halle (Westfalen).

Supported by Logwin, the Westphalian International Junior Tennis Cham-pionships have been run in Halle in conjunction with the ATP event, the Gerry Weber Open, for the past ten years. The tournament was a chance to gain valuable world ranking points for the international field of competitors aged 18 years and under. The young players battled it out with focus and determination and the results at the end of the tournament were clear-cut, with both the girls’ and boys’ finals resulting in straight-sets victories.

18-year-old Angelique van der Meet from the Netherlands was victorious in the girls’ final, defeating her Canadian opponent Gabriela Dabrowski 7-6, 6-4.

A heavy downpour interrupted the boys’ final during the second set. Undeterred, 17-year-old Marton Fucsovics

went on to a decisive 7-6, 6-4 victory over the favouriteAlexandros Georgoudas from the German Tennis Club in Hanover. Fucsovics’s win earned him 250 points in the ITF rankings as well as a wildcard entry into the Gerry Weber Open in 2010, bringing the hard court specialist from Nyiregyhala in Hungary one step closer

to realising the dream of a major tennis career. �

YOUTH TENNIS

HONG KONG

Four times the size

Growth spurt in Hong Kong: Logwin hasmore than quadrupled its warehousecapacity in Kwai Chung. The capacity hasbeen boosted from 1,500 square metresto 6,600 square metres. This expansionhas created a total of around 4,000 high-bay palette spaces, particularly for the benefit of the climate-controlled sectionfor temperature sensitive consumergoods and electronic products. Thelogistics centre in Kwai Chung is in a strategically advantageous location in the vicinity of the container terminal andChek Lap Kok International Airport. �

HARDWARE LOGISTICS

The four finalists of the 10. Westphalian International Junior Tennis Championships GERRY WEBER Junior OPENin Halle/Westfalen (from left): winner Angelique van der Meet (the Netherlands), finalist Gabriela Dabrowski(Canada), finalist Alexander Georgoudas (DTV Hanover) and winner Marton Fucsovics (Hungary).

Hitting the nail on the head

From panel pins to garden fencing,the French hardware chain Leroy Merlinsupplies home handymen and profes -sionals on three continents with buildingmaterials, tools and decorating equip -ment. In Poland, Leroy Merlin ranks as the number one hardware store. Over thepast two years, Logwin has been at workproviding reliable goods transport. Hard -ware products arrive by sea from Asia andBrazil at Hamburg and Gdynia (Poland),from where they go on to Leroy Merlin’sdistribution centre in Strykow. In 2008 the total freight volume amounted to1,575 TEU – equivalent to 6,360 lawn -mowers lined up end to end! �

www.logwin-logistics.com – Logwin Magazine – 02|09 27

Bronze in Poland

Consistent opera-t ing results andsteady growth arethe main criteriafor Poland’s“Gazela Biznesu”(Business Gazelle)prize, awardedannually by the business magazine“Puls Biznesu” (The Business Pulse).The independent jury included high-profile professionals from various in -dustries including the financial sector.With the growth of its business inPoland, Logwin was a convincingperformer, taking out the bronze for a well-earned third place in the Warsaw metropolitan region, andeleventh place in the overall com -petition. Logwin’s result was parti -cularly pleas ing as it was the best ever achieved by a logistics com-pany in the eight-year history of theawards. �

BUSINESS AWARD

Faster in store

For particularly urgent fashion consignments Logwin has been offering the Fashion-X-Pressservice since June. This ensures that the ordered garments already reach the specified retailchain store or boutique the next day – by midday if required. �

NEW SERVICE

Fruity delights from Austria

Breakfast like a king – the perfect way to start the day with jam, honey and stewed fruit from Darbo, a business with a long and rich tradition. The market-leading Austrian jammanufacturer attaches great value to a natural production process and a high fruit con-tent. Darbo markets its products in retail stores and through restaurant distributors in 62 countries worldwide. Logwin not only delivers this tasty fare to shelves and tables in 13 European countries, but also picks up the best fruits to supply ongoing production. �

NATUR ALLY DELICIOUS

To launch the Fashion-X-Press services, Logwingave away a weekend in the snappy fashion Mini.The lucky winner: Bernhard Spitzenberger, Dispatch Manager at Eterna in Passau.

SAFER THAN SAFE

Valuable goods, stringent security

When sending itemsof highvalue,Logwin’s customers inSwitzerlandcanbookour “ValuableGoods” service. This service offers an especially high level of security for goods valued at300,000 Swiss francs (approx. 200,000 euros) or more. For goods worth 1 million francs ormore, we implement our most stringent security measures. When such an order is enteredinto Logwin’s system, the staff member handling the order must await approval by a mem -ber of management. This ensures that all of our internal screening procedures are adheredto, including seamless monitoring right up until the delivery receipt is filed. For the highestlevel of freight security, Logwin only transports “Valuable Goods” consignments by partialload – that means non-stop, door-to-door transport. The entire “Valuable Goods” process is handled by specially selected staff. �

newsflash


Racing for a good causeThe rules: Two to three vehicles with four to six drivers must con -quer a self-selected route between the Bavarian town of Ober-staufen and the Jordanian capital of Amman without any technicalnavigation support. The road traffic regulations of each countrymustbeobserved. “Thecarsmustbeat least20yearsoldorvaluedat no more than 2,000 euros”, explains Logwin employee SilkeSchwanitz, who took part in this year’s rally. “Using motorways isas big a taboo as staying in luxury accommodation.” Participantsarenotpermitted tospendmore than10eurospernightonaverage.Consequently, taking a tent is highly recommended.

Special tasks, such as obtaining the music and lyrics of thenational anthem of each country traversed, are awarded extrapoints. The winner of the rally is the team that arrives in Ammanwith all its members and has accrued the most points. Winner inMay 2009: The German team “Kette rechts und Bremse offen e.V.”[approx. ’Top Gear, Brakes Off’]. The vehicles and all the equip-ment is sold or auctioned in Jordan, with the proceeds going to theUnited Nations World Food Program for establishing and operatinga cheese factory in Jordan. Any excess funds from entry fees orsponsors are also donated to the account.

FOURTH ALLGÄU ORIENT R ALLY

Main prize: A camel donated by the king

323 drivers from nine countries took part in this year’s “last greatautomobile adventure in the world”. The low budget race was first heldin 2006 as a counterbalance to the Paris-Dakar Rally. One of its aims isto promote international understanding. The tour has now establisheditself as an event with a long-term charitable secondary outcome.Consequently, Logwin was happy to support two teams.

First prize in the rally, a real camel, is donated by the Jordanian royalfamily, which supports the event very generously. Attempts in the pastto export the camel have all failed due to customs and quarantine re-gu la tions. Therefore, the winners have established the grand tradition of donating the camel to a needy Bedouin to help secure their basic liveli hood – subject to the condition that the winner maintain the rightto visit the camel for the term of its natural life. �

Successful rally participants (back row, from left): Logwin staff member Silke Schwanitz, Joachim Büttner, Andreas Bramm, Marco Rosenberger, Jochen Imgrund, Wolfram Eisert, Joachim Miltenberger and Willi Schwanitz. (In front): Thomas Imgrund and Doris Paul.

newsflash


NÜRBURGRING

Initially, the racing gods looked favourably down upon the Logwin spon-sored team. The 420 HP Porsche fought its way from grid position 34 tothe front with interchanging drivers and a top speed of 289 km/h. Fullyfocused, lap after lap. Everything went well for a long time. But then inthe middle of the night came the blow: A crack in a stabiliser bolt.Damage that would have condemned any normal road vehicle to spenda couple of days in the workshop.

A nocturnal demise?

However, the RDM racing team mechanics weren’t overcome by thebolt and rectified the damage in record time – the ferocious pursuit for a respectable finishing place could continue. Ultimately, the fourdrivers were able to manage an outstanding third place in the amateurrankings and an amazing 16th place overall. In total, 121 amateur and48 professional teams took part. �

24-hour tempo“Full throttle to the end” – a sticker emblazoned with the motto of the RDM racing team on the steering wheel of the Porsche 997 GT3.The amateur team under team leader Kurt Ecke took off in this racingmachine in the traditional 24-hour race on the Nürburgring. For a dayand a night they circled the legendary racetrack in the Eifel region(Rhineland Palatinate), together with 169 other competitors.235,000 enthusiastic spectators filled the stands and surroundingfields.

3,500 kilometres to glory

The famous track is 25 km in length. 141 laps in all add up to a total of 3,500 km - the ultimate test for every driver and their machine’smaterials. Therefore, all four RDM racing team drivers were unani -mous that they would pilot their car over the finish line “quickly, butsafely - applying a calculated risk approach”. And in the Top 30.

After a champagne shower: Steffen Schlichenmeier, “Peter König”,Jacques Meyer and Kurt Ecke (from left) drink to a great race.

The RDM Racing Porsche handled the corners beautifully in the 24-hour race.


play sudoku and win

1st prize: Nintendo Wii with “Wii Music” gamevalued at approx. 250 euros

Active console fun for the whole family – theNintendo Wii will get you up and moving with -out even leaving your lounge room. This prize also includes “Wii Music”, which enables you to play up to 60 different musical instrumentswith the Wii controller and even conduct an orchestra.

Music to the ears for gadget loversThank you for the music! These great prizes will not only bring music to

your ears, they’ll turn you into a recording artist – online and offline.


2nd prize: Apple iPod touch valued at approx.150 euros

At your fingertips: this next-generation touch -screen MP3 player brings you music, videos,games and internet access whenever there isa Wi-Fi access point nearby. The built-in spea-ker lets you share your favourites songs andmovies with other people without the need forheadphones.

3rd prize: Internet radio valued at approx.100 euros

Had enough of hearing the same old jingles onyour local radio station? This internet radio letsyou switch to your favourite station from any -where in the world. Wake up in London with aweather report from Sydney or listen to a liveinterview with Barack Obama when you’re inBeijing.

Here’s how to enter: Fill in each blank square with a num -ber from 1 to 9 so that in each row,each column and each 3 x 3 box,each number appears once only. Thenumbers in the coloured squaresform the solution code you need toenter. Email the solution code alongwith your name and address to:[email protected]

Entries close 31 January 2010. Therewill be no right of legal appeal againstthe outcome. Winners will be notifiedin writing and published in the nextedition.

The solution code for the puzzle inthe 1/2009 edition was: 23173.

The winners were: Oliver Kruse from Ratingen, Germany (1st prize:net book), Thomas Poeplau from Amberg, Germany (2nd prize: digitalcamera) and Markus Engesser from Thônex - Geneva, Switzerland (3rd prize: MP3 mobile phone). Congratulations to all our winners!

© except as noted otherwise:Logwin; p.3 Georg-ChristofBertsch, ZF Friedrichs hafen AG,p.4 masterfile (Robert Harding),p.6 Günther Hofer (shotshop.com),Delphine © www.fotolia.de, p.7+8 Georg-Christof Bertsch, ullsteinbild, p.9 ElvLivia © www.fotolia.de, p.10 PeerFrings © www.fotolia.de, p.11 ullstein bild, p.12+13 ZFFriedrichshafen AG, p.17 FelixHorstmann © www.fotolia.de,p.20+21 Fresenius Medical Care, p.21 grenzverkehr(photocase.com), p.22 Johnny(shotshop.com), SePp(shotshop.com), p.23 Eric Isselée© www.fotolia.de, p.25 Somfy,p.26 OHRAUGE www.fotolia.de, p.27 Darbo, p.28 Hunta © www.fotolia.de, p.30 Jo. (photocase.com), © Nintendo,p.31 Apple and iPod Touch areregistered trademarks of Apple, Inc., © dnt GmbH

PICTURE CREDITS

As an integrated logistics and service provider, Logwin develop comprehensive solutions for industry and commerce. With approximately 8,000 staff at 400 locations in 45 countries around the world, Logwin offer contract logistics, international air and sea freight as well as road and rail transport services. Logwin’s customised logistics solutions help create sustainable growth for its customers. To find out how Logwin’s

experience of more than 30 years in the Asian market can help you, log on to

www.logwin-logistics.com.

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