Asia-Pacific - Kuehne€¦ · Asia-Pacific China and India are the powerful growth engines Clearing...

Asia-PacificChina and India are the powerful growth engines

Clearing the wayKuehne + Nagel supports solar taxi project

worldM A G A Z I N E NO . 1 / 0 8

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Kuehne + Nagel International AG

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Language

English and German

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33,000

4 FocusThe Asia-Pacific organisation

20 Markets & Products300 tonnes of extreme cargo fill three Antonov bellies

21 On the glass road

22 Nacora: continued growth

24 Clearing the way for solar energy

26 Beiersdorf relies on Kuehne + Nagel

27 Partnership with Carrefour in Turkey

28 InsideContented shareholders

29 Klaus Herms celebrates 40 years with Kuehne + Nagel

30 Round the World

34 People & News

2 C O N T E N T S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

K U E H N E + N AG E L . . . . . . . WO R L D N O . 1 / 2 0 0 8

Dear Readers

The dynamic economies of the Far East are generating high transport and logisticsvolumes, with India and China leading the way. This makes the Asia-Pacific region,upon which this issue of the World Magazine focuses its attention, an importantarea of activity for the Kuehne + Nagel Group.

As is the case everywhere, our staff in this part of the world are fully prepared todeal with the ever greater complexity of supply chains, including rapid develop-ments in the field of information technology, and are always ready to adapt to theconstantly changing demands of customers.

Internationally operating customers as well as domestic manufacturers and retailersare increasingly demanding efficient logistics solutions and innovative lead logisticsconcepts such as those offered by Kuehne + Nagel. In this region there is also a growing demand for our range of niche products. Whatever services a customerrequires, they can be sure that Kuehne + Nagel is fully committed to meeting theirneeds, wherever they are located.

It is precisely for this reason that globally operating companies such as Beiersdorf,Gloria Jean’s Coffees and Carrefour have chosen Kuehne + Nagel as their logisticsprovider. In this issue you can learn exactly what these operations involve, and alsoread other fascinating articles from the world of Kuehne + Nagel.

I wish you an enjoyable read.

Yours

Klaus HermsChief Executive Officer

3E D I T O R I A L. . . . . . .


The Asia-Pacific organisation is growing fast. This is reflected in the impressive business growthrates as well as in the number of employees: The workforce in the region, which now comprises5.902 people in 143 locations, has almost quadrupled in size since 1999. Specifically in the two

The Asia-Pacif i

AfghanistanLocations: 1

Employees: 1

Warehouse space: –

AustraliaLocations: 9

Employees: 354

Warehouse space: 50,400 sqm

BangladeshLocations: 2

Employees: 112


CambodiaLocations: 1

Employees: 9


ChinaLocations: 37

Employees: 2,836


IndiaLocations: 23

Employees: 701


IndonesiaLocations: 10

Employees: 184


JapanLocations: 10

Employees: 238


KoreaLocations: 5

Employees: 119


MalaysiaLocations: 5

Employees: 220


MaldivesLocations: 2

Employees: 13


New ZealandLocations: 4

Employees: 136


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BRIC countries China and India, there are plans for a further major expansion of the Kuehne + Nagelnetwork from 60 to 85 branches by 2010. The driving force behind the expansion plans is the needto make optimal logistics solutions available to every customer.

c organisat ion

PakistanLocations: 5

Employees: 58


PhilippinesLocations: 6

Employees: 105


SingaporeLocations: 5

Employees: 237


Sri LankaLocations: 2

Employees: 30


TaiwanLocations: 5

Employees: 208


ThailandLocations: 5

Employees: 256


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VietnamLocations: 6

Employees: 85


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Asia-Pacific

Locations: 143

Employees: 5,902



A S I A - PAC I F I C

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Customer focus is the keyAndy Weber, Regional Manager Asia-Pacific, on the characteristics of the region, the company’sobjectives and his recipe for success in these dynamic markets.

“As a result of the innovative power of our

Group, we are able to offer effective solutions.”

Swiss-born Andy Weber began his career

with the Kuehne + Nagel Group in Johan-

nesburg in 1982. This posting was followed

by management positions in Japan, Iraq and

Ivory Coast. In 1994 Weber took over the

management of the national company in

Taiwan, and only three years later he was

appointed Managing Director of Kuehne +

Nagel Ltd. Hong Kong, to which the branches

in China also belonged. Since July 1999 he

has been responsible for business operations

in the whole of the Asia-Pacific region.

Mr. Weber, as Regional Manageryou have been responsible for thedevelopment of Kuehne + Nagel inthe Asia-Pacific region for nineyears. How has the organisationchanged during that time?Both our network and our service port-folio have grown substantially. TheKuehne + Nagel organisation in the FarEast already comprised 18 national com-panies in 1999, just one less than today,but since then its workforce has increasednearly fourfold. Presently, around 5,900people operate in more than 140 loca-tions. We want to continue this dynamicgrowth and further increase the densityof our network; by 2010 we plan to berepresented in roughly 85 locations inIndia and China alone.

What new demands do your cus-tomers have, and what are you andyour staff doing to accommodatethem?The ever more complex global flows ofgoods and the tremendous advances inthe field of information technology havebrought notable changes to the require-ments of our customers. Previously itwas sufficient to carry out transportfrom A to B and to offer the customeradded value by means of supplementaryservices, whereas today a great dealmore is demanded. Besides intelligentfull service solutions from a single source,customers want comprehensive supplychain transparency and sophisticated,standardised IT applications for themanagement of procurement, productionand distribution processes. As a result ofthe innovative power of our Group, weare able to offer effective solutions.

What are Kuehne + Nagel’s develop-ment plans for the Asia-Pacificregion?The economic momentum from the coun-tries of the region will open up new busi-ness opportunities for ourselves and forthe whole Kuehne + Nagel Group. Ouraim is to successfully expand our leadingposition in sea- and airfreight in the Asia-Pacific region. At the same time we wantto press ahead with the further deve-lopment of contract logistics – the thirdimportant pillar of our business –through out the region. We currentlyoperate a warehouse area of approxi-mately 340,000 sqm in 55 locations in14 countries.

The driving force behind our expansionplans is the need to always be close toour customers and to offer them an opti-mal logistics infrastructure, which sup-ports them in the development of newproduction or sales markets. Our growthplans accordingly focus primarily on thetwo BRIC countries China and India. Butwe also want to strengthen our marketposition in other countries of the region.

You mentioned China and India.What common features and differ-ences do you see between these twobooming economies, and what istheir significance for Kuehne +Nagel’s logistics business?Both are very dynamic markets. But eachis unique in its way. In day-to-day busi-ness in China, for instance, it is veryimportant to observe the correct eti-quette in relations between customerand contractor, while Indians, on theother hand, like to do business withfriends.

6 F O C U S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


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“The driving force behind ourexpansion plans is the need to

always be close to our customersand to offer them an optimallogistics infrastructure, which

supports them in the deve-lopment of new production or

sales markets.”

In a direct comparison between the twocountries, infrastructure clearly emergesas one of the big challenges in India.Here a good deal must be done in orderto catch up with China and create opti-mum conditions for logistics.

Kuehne + Nagel is nevertheless achiev -ing double-digit annual growth in bothmarkets. And that, at the same time, isone of the challenges that faces us inthe medium term: to find enough logis -

tics specialists with the necessary poten-tial to be trained in-house and retainedlong-term. It is expected that China alonewill need another 400,000 logistics specialists in the coming years.

It is important that we are able to offerour customers in emerging markets thesame service and process standards as inthe west.

A brief glance into the future: Whatelse can customers expect fromKuehne + Nagel in the Asia-Pacificregion?To meet the constantly changing de mandsof our customers, besides strengtheningour core business activities we also planto pursue the offering of niche solutions,such as those for the hotel and casinoindustry, beverage logistics or the perish-ables business. We also want to expandour capacity as a lead logistics providerand offer logistics solutions with inno-vative products and services.

The Group’s successful operations in the

Asia-Pacific region are directed from the head-

quarters (front right) in Hong Kong.

7F O C U S. . . . . . .


8 F O C U S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9F O C U S

On course for growthChina and India are the powerful engines that are driving the economies of the Asia-Pacific region and generating impressive growth rates. Kuehne + Nagel is firmly established in thesetwo BRIC countries, whose substantial transport volume benefits the organisation all over theworld. The two markets and other countries across the region are featured in the followingpages.

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International trade is key for China in itsrole as a mass producer of finishedgoods; it is regarded as the “workbenchof the world”. Another factor is the grow-ing purchasing power of the country’spopulation, which is leading to a steadyincrease in consumption and is reflectedin the growing number of car owners. TheOlympic Games in August in Beijing havealso given a boost to the economy: Workon the construction and expansion offacilities to accommodate the expected

1.5 million visitors has already been inprogress for some years. The logistics sector is naturally benefiting from thesedevelopments and growing at an impres-sive rate. It now contributes 18 per centof the country’s GDP.

Although a slowdown in the world econ-omy is expected in 2008, experts do not

C H I N A

ChinaThe figures are staggering: In 2007 China’s economy grew by 11.4 per cent and its gross domestic product (GDP) is theworld’s fourth biggest after the USA, Japan and Germany. Furthermore, with approximately 1.3 billion people China is the country with the world’s largest population.

10 F O C U S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

predict a medium- or long-term reductionof goods flows in China. A good deal isbeing done to strengthen the infrastruc-ture, in which several hundred billion USdollars are to be invested in the next fiveyears. Three of the world’s ten biggestports are now on the Chinese mainland.With a container volume of more than 26million TEU and 20 per cent growth, in2007 Shanghai overtook Hong Kong tobecome the world’s second biggest con-tainer port (Singapore is in first place).The combined volume handled by all Chi-nese mainland ports amounts to morethan 100 million containers per year.New air terminals were recently openedin Shanghai and Beijing, and the Chinesegovernment has published plans to con-struct a total of 97 new airports by 2020.

Kuehne + Nagel has been present in China since 1979. Its experience, compre-hensive range of services and over 2,800employees (including Hong Kong andMacau) make it one of the country’s leading logistics companies. In March2004 it was the first global logisticsprovider to obtain the Class A ForwardersLicence – a milestone for the develop-ment of its business in China. The licenceenables Kuehne + Nagel to operate onan independent basis in China and todirectly provide customers with the fullrange of international forwarding andlogistics services. Today the company isrepresented in 37 locations in 21 cities;eight more branches are to be added bythe end of 2008. Last year a special high-light for Kuehne + Nagel was the open-ing of two new warehouses in Shanghaiand Tianjin for two of its key contractlogistics customers in China: Siemensand the US retail chain Best Buy.

Just as anywhere else, the law of supplyand demand also applies in China, andthere have recently been notable rises inthe costs of labour and raw materials.Particularly against this background,domestic manufacturers, retailers andinternational companies are increasingly

The Kuehne + Nagel headquarters in

Shanghai.

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11F O C U S. . . . . . .

B R A Z I L

I N D I A

R U S S I A

C H I N A

B R I C C O U N T R I E S . . . . . . . BRIC are the initial letters of the countries Brazil, Russia, India and

China. In view of their fast-expanding economies with growth rates ranging from 5 to 11

per cent per year, experts forecast that by 2050 they will overtake the G8 countries

(Germany, France, UK, Italy, Japan, Canada, USA and Russia). Roughly 40 per cent of the

world’s population (2.8 billion people) live in the BRIC countries. They now contribute

roughly 10 per cent of world GDP (approximately 33 trillion euros).

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demanding efficient and cost-effectivesupply chain solutions ranging from inte-grated 3PL to comprehensive lead logis-tics services from a single source such asare offered by Kuehne + Nagel.

The objectives for the coming years:Kuehne + Nagel aims to maintain itsposition as market leader in seafreight,make a committed effort to expand itsairfreight business, and – as a third pillar– expand its position in contract logistics.

The container port of Yantian near Hong Kong.

IndiaMore than 1.1 billion people live in India, and 34 per cent ofthem are under 18 years old. The country has a reputation as a “think tank” and has a steady output of world-class scientists and engineers. It is also well known for its softwareproduction and as the world’s biggest producer of genericmedicines. Its gross domestic product (GDP) grew by 9.4 percent in 2007, making it the country with the second fastesteconomic growth after China. The logistics sector currentlyaccounts for 13 per cent of the GDP and is growing rapidly.Now estimated at 100 billion US dollars, it is expected todouble by 2020.

Kuehne + Nagel started operating inIndia in 1987 through a joint venturewith a local partner, and founded itsown national company in 1997, whichnow employs roughly 700 people andhas 23 branches in this multi-ethniccountry; 17 more are to be opened dur-ing the next 24 months.

The undisputed market leader in sea -freight, the company also ranks amongthe top providers in airfreight and incontract logistics. Kuehne + Nagel offerstailor-made solutions to customers withspecial requirements such as the auto-motive, aviation, pharmaceutical, paperand hotel industries.

Its clear strategy gives Kuehne + Nagelan edge over its competitors in a marketwhich – due to its rapidly growing middleclass (an estimated 300 million people) –shows a remarkably even balance be-t ween imports and exports. The nationalcompany was named “Best SeafreightProvider” and “Runner-Up Air FreightProvider” in 2007.

The Indian ports handled a total of 6 million TEU in 2007, and this figure isexpected to rise considerably in the nearfuture. A major infrastructure programmeis in progress to meet the fast-growingdemands of the market and alleviateexisting bottlenecks. New terminals areunder construction at the JawaharlalNehru Port in Mumbai and in Cochin,and the port of Chennai is also beingexpanded. In addition, the governmentis taking steps to facilitate privateinvestments in infrastructure projectsand thus contribute towards a sustainedimprovement.

In airfreight, India strives to become animportant cargo hub. The number ofpassenger and cargo aircraft forecast for

I N D I A

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12. . . . . . .

The Kuehne + Nagel head office in Delhi.


the next two years will provide logisticscompanies with substantially more trans-port capacity.

With its wide range of industries theIndian market offers a multitude ofopportunities for an organisation suchas Kuehne + Nagel, which is able to pro-vide customers with a comprehensiveportfolio of services from integratedend-to-end solutions to value-addedservices such as buyer’s consolidation orsophisticated LCL seafreight products.Kuehne + Nagel’s national distributionnetwork is also developing well. Thecompany now handles roughly 5,000shipments per month and the trend ismoving away from distributing withinindividual states towards pan-Indian dis-tribution – a major challenge in a coun-try with an area of 3.3 million squarekilometres.

Kuehne + Nagel India foresees particu-lar opportunities in the contract logisticsand the lead logistics sectors, as moreand more local and also multinationalcompanies from the fields of telecommu-nications, retailing and fashion, pharma-

ceuticals and other key markets are placing their logistics operations in thehands of specialists in order to optimisetheir costs and efficiency. For an inter -national fashion brand, for instance,Kuehne + Nagel handles a productionoutput of more than 2 million articlesper season. The service includes invento-ry management, sorting, order picking,packing, labelling, nationwide distribu-tion to 160 outlets, and export to vari-ous countries all over the world.

What are Kuehne + Nagel’s plans for2008 in India? Major objectives includean enlargement of the network by ex -tending existing customer accounts toother locations, and expanding of nicheservices such as those for the hotel orfood industries. The optimisation of dis-tribution activities is also planned tocontinue. Not least Kuehne + Nagel is inthe process of building a 22,000 sqmwarehouse in Chennai for a telecom cus-tomer which is scheduled to begin oper-ation in September. By the end of theyear a total of 85,000 sqm warehousespace is projected to be under manage-ment in 20 locations (end of 2007: 13).

13F O C U S. . . . . . .

By the end of this year, Kuehne + Nagel will

have 85,000 sqm of warehouse space at its

disposal in India.

New facility in Malaysia Kuehne + Nagel has expanded its capac-ities in the Asia-Pacific region with thecommissioning of a new logistics centrein Malaysia. Dr. Urs Stemmler, Swiss Am -bassador to Malaysia, and Klaus Herms,Chief Executive Officer of Kuehne +Nagel International AG, officially inaugu-rated the facility in the presence of numer-ous customers and business partners.

Located at Bukit Jelutong (Shah Alam),roughly 25 kilometres from the capitalKuala Lumpur, the new facility provides22,000 sqm of handling and warehousespace and is equipped with the latesttechnology including RFID capability.The terminal, which has excellent trans-port connections, includes a chemicalstorage area for around 4,000 pallet posi-tions and a 2,000 sqm temperature-con-trolled area. 40 hydraulic loading docksprovide smooth access to the facility.

“The investment underlines the dynamicgrowth of the national company. It pro-

vides us with an ideal platform toexpand our contract logistics activities,an integral part of our business,” com-mented Andy Weber, Regional Managerof Kuehne + Nagel Asia-Pacific duringthe opening ceremony.

In his address, Klaus Herms looked backto the beginnings of the Malaysian com-pany, upon which he set his personalstamp. Malaysia’s favourable position inthe centre of the Asia-Pacific region wasa decisive factor for Kuehne + Nagel’sdecision to establish itself in the country35 years ago. The national companynow employs over 200 people at fivelocations in Kuala Lumpur, Penang andJohor Bahru, and offers comprehensiveinternational forwarding, warehousingand distribution solutions and customer-specific value-added services to domes-tic and international customers.

14. . . . . . .

Dr. Urs Stemmler, Swiss Ambassador to

Malaysia, and Klaus Herms, CEO of

Kuehne + Nagel International AG, visit

the state-of-the-art warehouse.


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in China collected over 100,000 US dollarsfor the victims within a week and thecompany contributed the same amount.The money was donated to local RedCross organisations.

15F O C U S. . . . . . .

Korea: contract signed withDoosan Infracore Kuehne + Nagel, which began its operations in Korea 35 years ago,was the first global logistics provider to operate in Seoul, initiallytogether with an agent. It now has its own national company andemploys approximately 120 people at its offices in Seoul, Pusan andIncheon. Kuehne + Nagel is in the top league in both the sea- andairfreight businesses in Korea, and operates warehousing and distri-bution facilities with an area of 30,000 sqm. Doosan Infracore, aleading Korean machine tool manufacturer with worldwide operations,has recently chosen Kuehne + Nagel as its partner to optimise inboundtransport flows. The services provided by Kuehne + Nagel include thehandling of full container load (FCL) and less than container load(LCL) seafreight shipments, buyer’s consolidation, and the transport of goods by air from Europe.

The students of the Wangsuozhai primary school in the province of Yunnan have been able

to count on the support of Kuehne + Nagel for many years.

The headquarters of the Kuehne + Nagel national company in Korea.

Direct aidAlongside the Kuehne Foundation, whichsupports training and further educationin logistics as well as sponsoring culturaland charitable activities, the Kuehne +Nagel national organisations also sup-port selected aid projects in their coun-tries. The companies in the Asia-Pacificregion, for instance, do much to helppeople in need. Since 1997 the ChineseKuehne + Nagel organisation has regu-larly given support to “Project Hope”, apublic welfare project which is initiatedand organised by the China Youth Devel-opment Foundation. In poor rural areas ithelps to motivate premature schoolleavers to resume their education and toinduce at-risk boys and girls to continueschool attendance.

Kuehne + Nagel China first sponsoredthis scheme, which attracts a great dealof attention both in China and abroad, in2000 when it supported the constructionof the Wangsuozhai Hope School, a pri-mary school in the province of Yunnan.The link with “Project Hope” is a long-term commitment under which Kuehne +

Nagel also supports schools by contribu-tions in kind such as clothing, school fur-niture, PCs, books or paper.

Spontaneous assistance is also needed.Following this year’s earthquake disasterin China, the Kuehne + Nagel employees

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16


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Moving up in Thailand with Kone Thai LiftKuehne + Nagel Thailand was founded in 1966 and officiallyregistered as a company in 1985. It now has 250 employees in fivelocations in Bangkok, Laem Chabang and Phuket. As regards itsmarket position, it is the number one in seafreight and one ofThailand’s leading airfreight and contract logistics providers.

One of the companies that count on the know-how and resources of Kuehne + Nagel is Kone Thai Lift, one of the world’s leadingmanufacturers of lifts and escalators. A recently signed agreementbetween the two companies encompasses services along the supplychain which range from international seafreight and customsclearance to warehousing, delivery to construction sites and spareparts management.

Kuehne + Nagel is working on an exclusive basis on the BRT (BusRapid Transit) project in Bangkok; Kone Thai Lift has been awardeda contract from the city authorities to supply 48 complete escalatorunits for twelve new bus stations all over Bangkok. BRT Bus RapidTransit is the new municipal transit scheme which will comprise fiveroutes. The first is due to go into operation from mid-August. Theroutes will have a total length of 110 kilometres and are expectedto handle 50,000 passengers per day in the first year.

The large parts are delivered to the construction sites at night, fortwo reasons: firstly in order to avoid obstructions to traffic andsecondly because of safety considerations. At the beginning of Junedeliveries to seven of twelve stations had been successfully andsmoothly completed.

Besides the BRT project, Kuehne + Nagel is also collaborating withKone Thai Lift on other projects all over the country. One suchproject is the delivery of lifts to the “Met Condominium”, Thailand’stallest residential building with a height of 70 floors.

Top logistics know-howfor the MaldivesWhite sandy beaches, an azure-blue sea, shadypalms and brilliantly coloured plants – theMaldives are a tourist’s paradise. The sectorprovides work for 22,000 people and contributes30 per cent of the gross domestic product of therepublic. Of its 1,190 islands 220 are used bythe indigenous population and 87 for tourism;most of the more than 100 hotels are resorthotels and include some of the world’s best,often located on private islands.

Kuehne + Nagel is the first international logis-tics provider to operate a wholly-owned sub-sidiary in the Republic of Maldives. The compa-ny has opened two offices, in the capital Maléand on Gan in the south. In addition to tourism,the Maldives have a second pillar to their econo-my: They are one of the key exporters of freshand aquarium fish. It is these two branches ofthe economy that determine the needs of thecustomers. With its offering ranging from hoteland beverage logistics to consumer goodsimports, international sea- and airfreight services,warehousing and project management, Kuehne +Nagel is considered a valued partner to itscustomers.

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One of the 48 escalator units transported by Kuehne + Nagel for the

construction of the new bus stations in Bangkok.

17F O C U S. . . . . . .

In addition to their strong bilateral rela-tions, since the 1990s the economies ofAustralia and New Zealand have alsobecome increasingly involved in otherparts of the Asia-Pacific region; Oceaniahas not been exempt from the trend torelocate production to lower-cost coun-tries such as China or India, which meansthat in Australia and New Zealand – incontrast to most export-oriented coun-tries in the Far East – import business hasa very important position. This is alsoreflected in the activities of the twoKuehne + Nagel national companies.Well over half the sea- and airfreight car-go is to and from the Asia-Pacific region,and the demand for comprehensive con-tract logistics services is growing rapidlyin both countries.

AustraliaFounded in 1971 Kuehne + Nagel Aus-tralia currently employs more than 350people in nine locations (Perth, Ade-laide, Melbourne, Hobart, Sydney, New-castle and Brisbane) in this countrywith a population of 20.4 million andoperates a warehouse area of 50,000sqm. Besides its extensive internationalforwarding and logistics portfolio, thenational company also offers specialisedsolutions for niche markets.

An example of this is the Adelaide facil-ity, which has developed into the drinkslogistics hub for Australia, and handlesroughly 5,000 TEU of wine and spirits

for export all over the world. In Januaryof this year a new, modern warehousefor this industry segment was openedat this location.

The economy of the fifth continent bene-fits substantially from Australia’s wealthof natural resources. The Perth branchfocuses on the oil and gas industry andhas steadily expanded its service spec-trum over the last few years. Since 2004Kuehne + Nagel has provided forwardingservices for Woodside Energy Limited,one of Australia’s largest publicly-trad-ed energy exploration and productioncompanies as well as a major seller ofliquefied natural gas, crude oil, conden-sate and liquid petroleum gas. Its com-mitted efforts for this customer have

Stronger Far East involvementDevelopment and expansion also set the tone in Australia and New Zealand.

The Asia-Pacific region accounts for well over half the freight volume handled by Kuehne + Nagel Australia and New Zealand.

18 F O C U S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

AU S T R A L I A

N E W Z E A L A N D


In 2007 Kuehne + Nagel was awarded a global contract by the Australian companyGloria Jean’s Coffees International for the provision of integrated logistics solutionscovering international transport, customs brokerage services and the implemen-tation and operation of regional logistics hubs. Gloria Jean’s operates a franchisenetwork of more than 875 stores in 32 countries.

The regional distribution centres in Sydney, Rotterdam and Dubai have alreadybegun operation; the hubs in Singapore and Mumbai will follow shortly. The con-cept ensures optimum lead times in the supply of products to Master FranchisePartners across the world. “Thanks to Kuehne + Nagel we for the first time have afully integrated, worldwide supplier-to-store logistics concept which ensures, forinstance, that our customers in Ukraine are supplied on a time- and cost-optimisedbasis with coffee from our factory in Sydney and with coffee cups and lids from our suppliers in China,” said Chris Muir, Global Supply Chain Manager of GloriaJean’s Coffees International.

Worldwide coffee logistics

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.paid off, for in 2007 the contract withKuehne + Nagel was renewed for afurther five years.

Growing demand in the commoditiessector is also making itself felt at theBrisbane branch, which is benefitingprimarily from the mining industry.Australian iron ore, copper, nickel, alu-minium and coal are exported main-ly to the Southeast Asia region butalso to China and India.

In the populous southeastern stateswith the economic centres of Mel-bourne and Sydney, highly specialisedwarehousing and distribution servicesare often a crucial competitive factor.More than 80 per cent of the 50,000sqm of warehouse space whichKuehne + Nagel operates in the coun-try is located in these consumer mar-kets. What customers require is a serv-ice provider that can offer comprehen-sive, integrated solutions from a sin-gle source and has a network coveringthe whole of the Asia-Pacific region.In Melbourne and Sydney there is alsoa demand for niche expertise: hereKuehne + Nagel re cently won a largecontract in the field of aviation logis-tics.

In April of this year, the Kuehne + Nagel warehouses in Sydney and Melbournewere transformed into a stage: in the supporting programme for a networkingevent, the Co-Opera Company put on a production of Giuseppe Verdi’s La Tra-viata which met with an enthusiastic response from the invited Kuehne + Nagelcustomers and members of the Swiss-Australian and German-Australian Cham-bers of Commerce.

The opera company was founded in 1990 with the aim of bringing classicalculture to the Australian outback. The professional performers travel all overAustralia with their repertoire and stage highlights from the world of opera inschools and gymnasiums in the remotest corners of the country. Thanks to thesupport of the Kuehne Foundation, the opera company can celebrate a premierein 2009; on 13 May it will travel to Switzerland for the first time and perform at the Annual General Meeting of Kuehne + Nagel International AG in the newmultipurpose hall of the municipality of Schindellegi.

Opera at the warehouse

“The Warehouse Non Trade Supplier of the Year” In 2006 Kuehne + Nagel won a tender by the retailer The Warehouse Group. During the following 18 months the management of the large container volume of New Zealand’s biggest importer was entrusted to a team of Kuehne + Nagel specialists. The service included assuring the highest possible degree of end-to-end supply chain transparency using KN Login – from supplier reporting to the monitoring of all goods movements both at the port and on the way to the destination. The results were convincing: Less than two years after the start of the project, in recognition of the achieved process improvements and increases in efficiency Kuehne + Nagel was awarded the title of “The Ware-house Non Trade Supplier of the Year”.

The main economic activities in NewZealand are somewhat unusual for a devel-oped country: agriculture and forestry,food and tourism. The country has apopulation of 4.1 million.

Kuehne + Nagel commenced operationsin New Zealand in 1971 and in 1999established its national company. Sincethen, it has increased its workforce fromten to 136. In particular, the company’srapid growth over the past three yearshas necessitated substantial investmentsin infrastructure and buildings in order tocontinue expanding its market sharesand develop customer solutions. Only akilometre from the Auckland headquar-ters, a new logistics centre with an areaof 10,000 sqm was recently commis-sioned. As a result, Kuehne + Nagel is inan even better position to offer compre-hensive and integrated logistics solu-tions along the supply chain.

Demand is also growing in other loca-tions in New Zealand. Only ten yearssince it was opened, the Wellingtonbranch has become one of the leadingproviders in the region. In Christchurch,the gateway to the South Island, the num-ber of staff and range of services havealso been expanded, while the branch inDunedin further to the south concen-trates primarily on the needs of the tim-

ber industry and is reporting a largegrowth in exports to Asia and the USA.

Kuehne + Nagel today belongs to thecountry’s top three logistics providers,and in response to the strong growth ofinterest in export opportunities for per-ishable goods, in 2007 it substantiallyincreased its perishable and reeferfreight capacity. The necessary licencesfor the handling of fish and meat prod-ucts have also been gained.

Kuehne + Nagel has substantially increased its capacity for temperature-sensitive cargo in

New Zealand.

New Zealand

19F O C U S. . . . . . .

New Zealand is highly dependent on for-eign trade. It is therefore regarded as amilestone that this year – after threeyears of tough negotiations – a free tradeagreement has been signed with China.For Kuehne + Nagel and its customersthis opens up further attractive possibili-ties for development between these twocountries and, of course, in the rest of theAsia-Pacific market.


20 M A R K E T S & P R O D U C T S

300 tonnes of extreme cargofill three Antonov belliesThe original assignment was to transport over 200 tonnes of bulky oil drilling equipment by airfreight to the oilfields of western Siberia. However, when this figure suddenly jumped to nearly 300 tonnes, Kuehne + Nagel Hamburg, which handled the project on a joint basistogether with Albacorshipping Toronto, speedily organised the transport of the additionalfreight. They could depend on the specialists of Volga-Dnepr for the delicate job of loading the cargo.

The order, which was already urgently awaited in Siberia,included containers with special interior fittings, cementpumps, cleaning pumps and cement preparation machines forthe lining of boreholes. The highly specialised equipment had

been brought by sea to Hamburg from Canada and the USA,and transported by rail and truck to the former military air-field located a short distance away at Parchim in Mecklen-burg-West Pomerania.

The loading of the highly specialised equipment calls for a sure hand: this time there are only centimetres to spare.

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21M A R K E T S & P R O D U C T S

On the glass roadMultimodal shipments to Russia – Kuehne + Nagel ensures punctual completion of a factory for glass manufacturer Guardian.

Kuehne + Nagel is handling another major project in Russia.The company is currently responsible for all shipments neededfor the establishment of a new glass factory in Ryazan. Thecustomer is Guardian, one of the world’s biggest producers offloat glass and fabricated glass products headquartered inMichigan.

Everything for the new glass production plant has to bebrought to Ryazan (roughly 200 kilometres to the southeast ofMoscow). Equipment and machinery amounting to a total of35,000 tonnes of cargo has to be collected from all over theworld: the USA, China, Taiwan, Indonesia and Europe (UK, Lux-embourg, Italy, France, Poland, Germany, Belgium, Finland,Sweden, Netherlands and Austria). A period of 14 months isplanned for the project, for which the exact time schedule hasbeen drawn up jointly by Kuehne + Nagel and Guardian. TheRyazan assignment is a multimodal project which involves dif-ferent forms of transport and the carriage of oversized itemsby ship, rail and road.

415 standard and high-cube containers were collected at theirpoints of departure in the USA, Taiwan, China and Indonesia,transported to ports, loaded onto ships and carried by sea toSt. Petersburg from where they were transported overland tothe customer. 32 oversized units – some of them with widthsof up to 6 metres – were moved to ports on special trailersbefore being likewise carried across the sea. The contents of28 railway wagons with sometimes sensitive equipment andmachine parts from Europe had to be transferred onto trucksfor the final kilometres to Ryazan. In addition, 49 oversizedand 680 standard trucks went directly to the destination, anda few special items travelled by airfreight. Guardian had noneed to worry about any of the individual steps in the ship-ping process or the formalities involved in special transport,customs clearance, measurement and final delivery. Kuehne +Nagel successfully took care of everything.

Originally founded by the Russian State Duma and theMinistry of Transport, this year’s annual Golden CarAwards held in late June honoured the Russian Kuehne +Nagel organisation with the title “Leader in Transportand Forwarding Industry in Russia”. For ManagingDirector Perry Neumann the prestigious award is aconfirmation of the company’s commitment and successin the up-and-coming Russian logistics market, as wellas “a compelling obligation to consistently continuewith our expansion strategy in line with growing cus-tomer demand in this huge country.” Kuehne + Nagelhas been active in Russia for 16 years and today oper-ates offices and warehouses in Moscow, St. Petersburg,Yekaterinburg, Kaliningrad, Rostov-on-Don and onSakhalin.

As far as the eye can see: oversized special transport by rail.

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A Russian awardThere, it had to be loaded into the blue-and-white Antonovs, atricky task even for the specialists of Volga-Dnepr as there was little room to spare inside the giant bellies of the aircrafts.The two originally scheduled freighters carried respectiveloads of 105 and 100 tonnes, close to the maximum capacityof 120 tonnes with the heaviest freight item weighing 42tonnes. In the hold, with a length of nearly 37 metres, the car-go filled almost the full height of 4.40 metres with a clearanceof only four centimetres. The additional freighter, which car-ried a further 90 tonnes to Nishnevartovsk in western Siberia,was needed at short notice due to delays in the approval pro-cedure for the originally planned transport by rail. This thirdaircraft – the Antonov 124-100 “Ruslan” – was organised with-in ten days. And here too, the freight flyers from Ulyanovskproved to be strong partners.

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22 M A R K E T S & P R O D U C T S

Continued growthThe Nacora Group has sustainably developed against the downward trend in the insurancemarket and is continuing to expand its network.

Dr. Weber, you have been at thehead of the Nacora Group for threeyears. What picture did the NacoraGroup present when you took overits management? In the summer of 2005 I got to know theNacora Group as a network of nationallyoperating brokerage companies distin-guished by high profitability, a highlycommitted workforce and a good marketposition in the field of marine cargo insur-ance. In a number of countries Nacorawas also a respected player in other areasof the insurance industry.

What were your main objectives?To speed up the organic growth of theNacora Group and press ahead with theexpansion of the network in order tomake a substantial contribution to thebusiness results of our parent company.

And how has Nacora developedunder your leadership?In the past few years, on average wehave achieved double-digit growth. Thisapplies both to gross profit and to netearnings. Over these years the insurancemarket has been on a downward curve,so the Nacora Group has clearly movedagainst the trend. In 2005, our networkspanned 28 locations in 21 countries. Atthe end of 2008 the plan is to have 48offices in 32 countries. We have vigor-ously expanded the transport insurancebusiness. For the Kuehne + Nagel Group,for instance – a very important market-ing channel for us – we have developedtwo insurance products which can beoffered exclusively to its customers. We

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Nacora, a wholly-owned Kuehne + Nagel subsidiary, is an independent insurance

brokerage group with worldwide operations. Its activities concentrate on the fields of

commercial insurance and cargo insurance. Its focussed strategy provides a substantial

competitive advantage and is enabling the Nacora Group to steadily expand its

network, which now comprises 29 national companies with 43 offices on all continents.

Tailor-made insurance solutions are offered to customers from trade, industry and the

public sector.

have also stepped up our efforts to selltransport insurance to other companies.

How does this segment look in termsof growth potential? The potentials for growth are still excel-lent. Here globalisation is un doub tedlya strong motivating force. But transportinsurance is a small niche and will re -main so in future. For that reason weneed new growth areas.

Which?By strengthening our marketing efforts,we want to gain commercial clients inthe local Nacora markets. That hardlysounds spectacular, but takes on a com-pletely different dimension if one con-siders that Kuehne + Nagel has roughly300,000 customers all over the world.

And Nacora is now focusing on these?Only up to a point. Many of Kuehne +Nagel’s customers are simply too bigfor the Nacora Group. However, ouranalyses have shown that between 15

and 20 per cent of the customers arealso of interest for our Group and couldbe served by it.

So we are talking about 45,000 to60,000 potential customers. Howmany customers does Nacora have atpresent?We have between 75,000 and 85,000customers all over the world. The majori-ty are companies who use the services ofKuehne + Nagel and other forwardersfor the transport of their goods andinsure them through Nacora. We alsohave many individual customers as aresult of the staff insurance business,and a total of 4,000 to 5,000 commer-cial clients who insure with us.

How do you expect the Nacora Groupto look in three to five years?We have very ambitious aims for theyears ahead which cannot be achievedsolely by organic growth. We are there-fore looking for suitable acquisition tar-gets in the different markets.


M A R K E T S & P R O D U C T S 23. . . . . . .

Just as important as growth, however,is to expand and further developNacora Group’s range of services. Inmany countries its activities are stilltoo focused on marine insurance. Wewant to change that by putting our-selves in a position to offer the com-plete range of insurance services asbrokers on a worldwide level.

The logical next development step isto offer customers more internation-al insurance programmes. What veryfew people know is that one of theworld’s biggest brokerage networksbelongs to the Nacora Group.

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Chile’s agriculture minister stresses importance of Kuehne + Nagel Marigen Hornkohl, who was recentlyappointed minister of agriculture inChile, visited the Kuehne + Nagel boothon the first day of Fruit Logistica inBerlin. She took the opportunity to stressthe importance of the company for theexport of agricultural products fromChile. She was accompanied by ReinhardR. Kuetter (2nd from right), Chile’s hon-orary consul in Bremen and general rep-resentative of Kühne + Nagel (AG & Co.)KG. At the stand the two visitors spokewith Frank Ganse (1st from right), GlobalDirector Reefer Logistics, and PabloNovoa (1st from left), Reefer Develop-ment Ma nager Chile.

As the leading fair for the internationalfruit trade, Fruit Logistica is naturally animportant platform for Kuehne + Nagel.Visitors showed a lively interest in theservices of the logistics provider on allthree days of the fair. Expertise in everyrespect was shown by the Reefer & Per-

ishables team, which was representedwith its own sea- and airfreight special-ists from the relevant key markets –besides Chile, also Argentina, Brazil,Egypt and Peru.

In this relatively new business segment –the company did not make its strategicentry into the reefer market until 1999 –Kuehne + Nagel is able to report signifi-cant growth in volume year after year. Itsaim is to establish itself as the leadinglogistics provider in this market.

Focus on strategyMeeting of specialists in Los Angeles: The 3rd Global LCL Meeting focused its attention on the strategic development of one of the most important seafreight products within the Kuehne + Nagel organisation: the Less than Container Load service. Thecompany’s own LCL network will be increased, and with the establishment of new LCL gateways in Dubai, Singapore, New York,Linz and Gothenburg, along with other gateways currently in the planning stage, the offering will be extended to more than280 direct LCL services and over 5,000 routes via gateways.

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24

Clearing the way for solar energyThe route covers a distance of more than 50,000 kilometres in 50 countries and across five continents. Kuehne + Nagel Switzerland and Asia are sponsoring the solar taxi project.Its mission – “Stop global warming” – could hardly be more appropriate.

. . . . . . .



Prominent visitors: Swiss Federal Councillor Micheline Calmy-Rey and Australian Minister for

the Environment Peter Garret.

The sea leg of the journey was made in

containers.

the solar taxi from Christchurch to Syd-ney (January), as well as transport by seafrom Perth to Singapore (March). Withthe aid of Kuehne + Nagel, this has beenfollowed by movements from Tianjin toIncheon (May) and from Pusan to Van-couver (June). A journey from Montrealto Casablanca is planned in July.

What determines the exact route of thesolar taxi? Invitations from inventors,organisations, individuals, and scientistswho are committed to the fight againstglobal warming.

The vehicle is expected back in Lucernein August, by which time it will haveattracted a lot of attention all over theworld. The media presence along theroute has been and continues to be high:international news agencies and nation-al media follow its progress, and reportsand images can be seen on the internetevery day. Many prominent people sup-port the mission and have been pho-tographed in and with the unusual vehi-cle. They include Swiss Federal CouncillorMicheline Calmy-Rey who was Presidentof the Confederation in 2007, NewYork’s Mayor Michael Bloomberg, PeterGarret, former Midnight Oil singer andAustralia’s new environment minister,and the Nobel Peace Prize laureate andChairman of the IntergovernmentalPanel on Climate Change Dr. Rajendra K.Pachauri. A meeting with Arnold Schwa r -

This project calls upon the assistance ofKuehne + Nagel whenever transport bysea or air is required. Since the start inLucerne, Switzerland, in July 2007, thishas included transport by seafreightfrom Jebel Ali to Mumbai (October), byairfreight from Calcutta to the world cli-mate conference on Bali (November), theshipment of the accompanying bus fromCalcutta to Sydney (November) and of

zenegger, former actor and now Governorof California, is on the agenda in July.

The initiator and director of the project is Louis Palmer, whose achievementsinclude setting a world record for a flightwith the smallest aircraft across SouthAmerica in 1998 and who was invited tothe World Climate Conference in Bali inrecognition of this action for the protec-tion of the world climate. His message is simple: “The solar taxi should rekindlehope and a zest for life, set an exampleto counteract resignation and stimulatereflection. And show that every singleone of us can take a step towards pre-serving our planet.”

. . . . . . .


26. . . . . . .

Beiersdorf relies on Kuehne + Nagel

The Beiersdorf cosmetics group has chosen Kuehne + Nagel as its partner in Germany and Austria. Since June 2008 the

company has been entrusted with the management of theNivea manufacturer’s main warehouse in Hamburg. It is also

handling exports to Beiersdorf’s subsidiaries abroad.

“All parties will benefit

from the partnership.”

“This new co-operation will bring moreflexibility and is a key step towards meet-ing the constantly rising demands of thecompetitive European environment. Wehave significantly improved our interna-tional competitiveness by restructuringour supply and production chain in thelast two years,” said Markus Pinger,Beiers dorf AG’s management boardmem ber responsible for logistics. “Oursystem cuts costs, is flexible and environ-mentally friendly and boosts our innova-tive strength. With it, new products canbe launched worldwide extremely quick-ly.” One of the key criteria for signing the

agreement was the preservation of the148 jobs at the centre as well as thelong-term preservation of Hamburg as alogistics location.

Efficiency and flexibility, as well as thelong-term prospects for the employees,were the predominant factors in the deci-sion of Beiersdorf CEE Holding GmbH toselect Kuehne + Nagel to operate thecompany’s logistics centre for Centraland Eastern Europe (CEE) in Vienna.

In 2007 Beiersdorf CEE Holding grew tobecome the second largest region withinthe Beiersdorf group, and is pursuingambitious growth targets.

Dirk Reich, member of the Kuehne +Nagel International AG ManagementBoard with responsibility for contractlogistics, is delighted at the co-operationwith Beiersdorf and is certain that allparties will benefit from the partnership.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Expansion of retail logistics activities in a fast-developingregion.

. . . . . . .

Partnership with Carrefour in Turkey

Carrefour Sabanci Ticaret Merkezi A. S.has awarded Kuehne + Nagel a contractfor the operation of its distribution cen-tre in Gebze near Istanbul to serve the“Carrefour Expres” supermarkets in thegreater Marmara region. The contractwas implemented once the extension ofthe Kuehne + Nagel logistics terminal inGebze was completed. Of the 16,000sqm that has been added to its ware-housing space, 12,000 sqm are utilisedfor Carrefour.

Kuehne + Nagel has also taken over theoperation of the existing Carrefour distri-bution centre (5,000 sqm) at Adana inthe south of Turkey, before moving theseactivities to a new state-of-the-art facilityin the course of the year. This new build-ing will provide space for Carrefour andother contract logistics customers.

Under the new agreement with Carre -four, Kuehne + Nagel is responsible forthe provision of goods receiving servicesfor more than 3,600 Turkish suppliers –

mostly from the Istanbul area – as well asquality control and storage. Other activi-ties include picking and just-in-time orderpreparation in accordance with Carre -four’s distribution schedule for its entireproduct range. This extends from clea -ning products and cosmetics to booksand electronic equipment, beverages andfood. Fruit and vegetables – due to theneed for freshness – stay in the distribu-tion centre only for a brief period prior toorder picking and distribution. Only inexceptional cases are these goods kept instorage.

All processes in the logistics centre aresupported by modern radio frequencytechnology. Voice picking will be intro-duced in the coming months in order tofurther optimise order preparation pro-ductivity levels.

Christophe de Nays Candau, DirectorOrganisation, Systems and Supply Chainfor Carrefour in Turkey: “The decision infavour of Kuehne + Nagel was based on

the company’s strong management capa -bilities and very good understanding ofCarrefour’s current and future supplychain needs.”

Kuehne + Nagel supplies the “Carrefour

Expres” supermarkets in the Marmara region

from its expanded logistics warehouse in

Gebze.

28 I N S I D E

Contented shareholders Clear majorities for all proposals at the Annual General Meeting held on April 30.

“Apart from the turbulence which resulted primarily from theUS credit crisis, conditions for the international logistics busi-ness were favourable and the Kuehne + Nagel Group wasable to benefit from the positive environment for growth andachieve another excellent result,” said Klaus-Michael Kuehne,Executive Chairman of the Board of Directors summing up the2007 business year in a single sentence. In his address heunderlined the Group’s continuing strong growth and acknowl-edged the achievements of its management and employeesall over the world, whose work delivered record results.Thanks to its global network and comprehensive service port-folio, Klaus-Michael Kuehne considers the company well posi-tioned to cope with economic challenges and to maximisenew business opportunities. Furthermore, recent appoint-ments at Management Board level have reinforced Kuehne +Nagel’s capability to consistently and successfully pursue itsstrategies.

In 2007, Kuehne + Nagel maintained its leading positionamong the global seafreight providers. Growth in the air-freight business was three times the market average, Kuehnesaid. In European overland transport the company resolutelymaintained its policy of strategic expansion, and in contractlogistics it achieved a breakthrough to the position of a glob-al player. “Last year the excellent business performance againenabled us to create more than 3,500 new jobs all over theworld, and added 1,250 employees to our workforce by the

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Kuehne + Nagel Group

million CHF 2005 2006 2007

Turnover 14,049 18,194 20,975

Gross profit 2,769 5,253 6,014

Operational result (EBITDA) 562 855 1,012

Net earnings 315 458 531

Kuehne + Nagel International AG

in CHF 2005 2006 2007

Dividend per share 1.10 1.50 1.90

acquisition of the two groupage providers G.L. Kayser andCordes & Simon, so that our total staff increased to 51,075,”the Executive Chairman added on a further positive note.

The company is also well equipped for the future, Klaus-Michael Kuehne stated. Although world economic growthwas slowing down, he was confident that it would achieve itsobjectives for 2008 – above-average growth in sea- and air-freight and contract logistics, and an expansion of overlandtransport.

The annual report, financial statements and consolidatedfinancial statements for 2007 were approved by the share-holders present, who represented 70.7 per cent of the votingshares. The Annual General Meeting also granted dischargeto the Board of Directors and the Management Board for the2007 business year.

Juergen Fitschen, a member of the Group Executive Commit-tee of Deutsche Bank AG, was elected to the Board of Direc-tors for a three-year term. Bernd Wrede and Hans Lerch werere-elected for a further three years. Bruno Salzmann, a long-time member whose mandate expired with the Annual Gener-al Meeting, retired from the Board. Klaus-Michael Kuehnethanked Bruno Salzmann for his successful work.


29I N S I D E. . . . . . .

Klaus Herms celebrates 40 yearswith Kuehne + NagelA ceremony was held at the Kuehne +Nagel headquarters in Schindellegi tomark the completion of 40 years of serv-ice by CEO Klaus Herms. In a wittyspeech, which not only described the var-ious stages in Herms’ professional life but also portrayed him as a family man,global head of HR Klaus-Dieter Pietschgave an outline of his career, comparing itwith a marathon run. The fact that hebecame a role model early on in his careerand motivated many people who are nowtop managers, was reflected in a long listof personal congratulations which werepresented to him in a bound volume.

Klaus-Michael Kuehne gave an address,which began with a look back at the timeKlaus Herms spent in the Far East; a timehe displayed diplomatic skill in winningnew business and opened a new nation-al company virtually every year. It is toHerms that Kuehne + Nagel owes muchof its present structure and worldwidenetwork, said Kuehne. He went on topraise the excellent work of Klaus Hermsin his position as CEO, which was metwith a favourable response throughoutthe Group. Klaus-Michael Kuehne summedup the past ten years as a great successstory, dominated by the development ofthe company into an integrated providerof logistics services, important achieve-ments in IT, and the positioning ofKuehne + Nagel as one of the world’sbiggest contract logistics providers.

Herms, who graduated from the re now -ned Deutsche Aussenhandels- undVerkehrsschule as a Business Economistin Foreign Trade and Transport, beganhis career with Kuehne + Nagel as atrainee in Bremen in 1968. Only a yearlater he took over the management of

airfreight in Hong Kong on a temporarybasis. Until the end of 1973 he was asales representative for the project busi-ness in the Far East, at the same time asassisting the regional head of theKuehne + Nagel companies in HongKong, Singapore and Taiwan. At thebeginning of 1974 Herms was appointedRegional Manager Far East, and in thefollowing years he devoted himself to theestablishment of national companies incountries which included Indonesia,Japan, Korea, Malaysia, the Philippines,

Sri Lanka and Thailand. In 1980 he alsotook over regional responsibility for Aus-tralia and New Zealand, followed by theIndian subcontinent in 1994. In 1988Herms became Line Chief Executive AsiaPacific and a member of the then GroupManagement. In mid-1999 he was calledto the Group headquarters in Switzerlandto serve as CEO.

In the middle of 2009, after 41.5 yearswith Kuehne + Nagel, he will embarkupon his well-earned retirement.

At the celebrations in Schindellegi.


30 R O U N D T H E WO R L D. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Global player sponsors Global Stone project “Hope” is the name of the 28-tonnestone from the South African BritsMine near Johannesburg which wasceremonially unveiled last Decemberin Berlin’s Tiergarten as a part of theGlobal Stone project. This colossus ispart of a project which was initiatedby Wolfgang von Schwarzenfeld in1997 and on its completion will forman ensemble of stones from allcontinents. The stones are positionedso that each year, on 21 June, theirpolished surfaces reflect back thelight of the sun to symbolically linkthem with the reflections from similarstones which have remained in theirhome continents. As a global playerKuehne + Nagel is supporting theworldwide project by sponsoring thecomplete transport of “Hope” fromthe mine to the vessel and from theport of Hamburg to its final destina-tion in Berlin.

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.... “Cordial thanks to Schindellegi

from the heart of Africa”Kuehne + Nagel assists the rural population in Congo – bargeengine travels by air.

“I am urged to write this letter to you bya serious breakdown that took place yes-terday on the Congo river barge of theYanga Cooperative.” These were thewords of Walter Muff, who has beenactive for 30 years in the Swiss supportassociation of the African initiative“Cooperative de Yanga”, and who wrotedirectly to Klaus-Michael Kuehne torequest assistance for his project in amajor emergency. This, specifically, con-cerned the transport from Switzerland toKinshasa of a replacement engine for ariver barge.

What is behind the “Cooperative de Yan-ga”? First of all, is the Congolese priestAbibé Nyeme Tese, who has devoted him-self to the cause of greater justice in hiscountry since his student days. Since1976 his primary aim has been to givethe rural population incentives to stay onthe land and to counteract migrationinto the cities or to Europe. In his schemehe has grouped roughly 40 villages in

Yanga is 1,340 km by river from the capital,

Kinshasa.

the central Congo basin into a coopera-tive. His work centres on helping the peo-ple to help themselves – besides theenlargement of the hospital, support forschools and agricultural groups, the oper-ation of a small sawmill and the mainte-nance of vehicles, this includes above allthe sale of agricultural products from thedistrict in the Congolese capital Kin-shasa. The only means of transport is thebarge. It carries maize, rice and manioc1,340 km by river to the capital. If it is outof action, the people are deprived of vitalincome from the sale of their produce.

Until the engine broke down, neither theresponsible people in Congo nor the sup-port association in Switzerland had reck-oned with such a serious mishap. On thecontrary, the vessel had undergone aninspection shortly before the breakdownoccurred.


31. . . . . . .

Kuehne + Nagel responded quickly andtransported the 1,500-kilogram replace-ment engine by air to Kinshasa at costprice, together with all accessory materi-al. By sea, the cargo would have been intransit for roughly three months. As itwas, the factory-overhauled 8-cylinderengine arrived in Africa within a veryshort time.

“The support association, which dependsentirely on voluntary contributions, couldnever have paid for this out of its ownresources.” After the mission was com-pleted, Walter Muff expressed cordialthanks from the heart of Africa to themanagement of Kuehne + Nagel Interna-tional AG in an article which was pub-lished in a number of newspapers.


32 R O U N D T H E WO R L D. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Bringing high-tech to the origins of humanity

It looks like an ordinary grey contain-er. But behind its steel walls is a lead-sheathed X-ray room in which, withthe aid of a high-resolution computertomograph, new information can beextracted from hominid bone finds upto 2.5 million years old. The advan-tage of this is that rare specimens nolonger have to be brought to the scan-ner but the scanner comes to the spec-imens. Kuehne + Nagel was responsi-ble for transporting the valuable car-go to Kenya – and contributed to partof the costs.

The Max Planck Institute for Evolu-tionary Anthropology – Department

of Human Evolution – investigates impor-tant bone finds which occur mainly onthe African continent in the area thatwas the cradle of humanity. The investi-gations are carried out with a tomographthat has a resolution many times higherthan those used in human medicine. Tohouse the instrument, the institute inLeipzig had a 20-foot container built to aspecial set of specifications. After an ini-tial trial in Morocco which saw the con-tainer with the installed tomographtransported to its destination by truckand ferry, a new challenge was present-ed: The long journey to the city of Nairo-bi. The container and tomograph wererouted separately: first the special con-

tainer on the ship “Safmarine Himalaya”via Mombasa (and from there by truck toNairobi), and then, a week before thearrival of the container, the X-ray deviceincluding valuable accessories by air-freight carefully packed in a speciallydesigned case.

The reason for adopting this approach,which was developed jointly by the MaxPlanck Institute and Kuehne + Nagel,was this: Only airfreight would haveallowed the complete unit to be trans-ported with sufficient safety, but thecosts – despite the support given byKuehne + Nagel – would have beenbeyond the limits of the budget.

Kuehne + Nagel first to use Cartainersin the South America region Car maker and importer are impressed.

Max Planck Institute sends its valuable computer tomograph to Africa.

It is offered exclusively by the CMA CGM shipping company and is called Cartainer.Cartainers are 40-foot high-cube containers which are fitted out in such a way thatthey can accommodate four cars. Their advantages over the traditional roll-on-roll-off (ro-ro) service are a faster transit time, less risk of damage, protection from theweather, no transhipment of the individual cars, and, finally, a lower insurancepremium. Cartainers have so far been used mainly on the routes between Europeand North America.

When an importer asked Kuehne + Nagel about the possibility of shipping its 200cars per year from Argentina, the decision was taken to use Cartainers in the SouthAmerica region for the first time. In order to ensure a smooth “maiden voyage” a specialist from the shipping line in Marseille was flown in to instruct everyoneinvolved in the loading of the containers.

The result after the successful completion of the transport: Both the car maker and the importer are highly impressed by the new solution. Kuehne + Nagel nowintends to offer the new service to other customers in the region.


33R O U N D T H E WO R L D. . . . . . .

The dual method served its purpose: Atthe National Museum of Kenya, the partswere put together again on site by craneand with the support of the local Kuehne + Nagel team, and were shortlyable to commence their valuable opera-tions.

The transportable laboratory is bringingto reality a vision cherished by manyresearchers: Creating a comprehensive vir-tual collection of important bone findsand making the associated informationavailable to the whole world. In 15 yearsat the most, according to Jean-JacquesHublin, Director at the Max Planck Insti-tute for Evolutionary Anthropology, Leip -zig, scientists will carry out a large part oftheir studies on virtual images of the bonefinds rather than on the fossil originals.

On the return journey no time was lostas the instrument was urgently need-ed by French scientists in Leipzig. Theflight home went without a hitch andthe device was delivered to the insti-tute after only four days. The contain-er has now also returned and is readyfor its next deployment.

The transport of the special container began in Leipzig (above)

and ended in Nairobi (below).

Strengthening of niche servicesKuehne + Nagel is expanding its offering in niche markets, asillustrated by two examples from France and the USA: A seven-year contract with the French brewer Kronenbourg, is laying thefoundations for a country-wide drinks logistics network. And with the acquisition of Elite Airfreight Inc. in Texas, the companyhas gained additional expertise in the oil and gas business.

2009 the country-wide network with fourregional distribution centres managed byKuehne + Nagel in Paris, Bordeaux, Lyonand Rennes (total storage area 96,000sqm) will also be available to other usersin the drinks industry. More than 900,000pallets per year can be handled. ForKuehne + Nagel this project is an impor-tant step towards the operation of its ownlogistics and distribution network for theFrench drinks industry – similar to theUnited Kingdom where comprehensiveindustry solutions are already offeredunder the name KN Drinks Logistics.

Kuehne + Nagel is also investing in acompletely different niche market: logis-tics for the oil and gas industry. Houston(USA)-based Elite Airfreight Inc. hasbelonged to the Kuehne + Nagel Groupsince February. As a transport specialistfor the oil and gas exploration anddrilling industry, it has strengthened thissegment of the international forwardingbusiness by contributing an experiencedstaff of 84. Kuehne + Nagel established adivision in Houston in 1977 specificallyto provide logistics solutions for the oiland gas industry. Elite was founded – alsoin Houston – in 1986. As a result of thisconcentration of forces, customers nowbenefit from enhanced logistics network-ing with their production areas in WestAfrica, the Middle and Far East, Russia,Central Asia and South America. In theHouston area alone, almost 20,000 sqmof warehouse space and over 21,000 sqmof outdoor storage area are available tothe industry.

The new logistics concept of France’sbiggest brewer is to use an outsourcednetwork of regional distribution centresinstead of supplying customers directlyfrom the production facility at Obernainear Strasbourg. Brasseries Kronenbourghas selected Kuehne + Nagel to partner itin the deployment and operation of theconcept. The plan is to establish regionaldistribution centres supplied by dedicatedblock trains. In peak seasons, the networkwill manage up to five 28-wagon trainsper day. Once operational after its phasedimplementation, from the beginning of


34 P E O P L E & N E W S


Hall of Fame honours for Klaus-Michael Kuehne and Reinhard Lange

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

On the occasion of one of its meetings, the “Hamburger Freitagsgesellschaft” founded byformer German chancellor Helmut Schmidt visitedKuehne + Nagel’s German headquarters in HafenCity. From left to right: Christine Kuehne,Helmut Schmidt, Loki Schmidt, Klaus-MichaelKuehne.

Freitagsgesellschaft

Bettina Schacht, wife of Otto Schacht, Global Head of Seafreight at Kuehne + Nagel, was invited to be a sponsor at the naming cere-mony of MOL Celebration at the shipyard of Mitsubishi HeavyIndustries in Nagasaki, Japan. Kuehne + Nagel is the biggest cus-tomer of the Japanese shipping company Mitsui OSK Lines (MOL),from whom the invitation originated. In Japan the ship christeningproceedings already begin on the previous evening with joint fes-tivities which culminate in the actual naming ceremony in which abottle of champagne is broken against the ship’s hull. MOL Celebra-tion has a capacity of 8,100 TEU and is being deployed in the Asia-Europe trades. It recently made its first call at Hamburg.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The International Air Cargo Association (TIACA)has inducted Klaus-Michael Kuehne into its Hall of Fame. Kuehne has received this honour inrecognition of his professional leadership andinnovative development of one of the world’sleading logistics companies. In addition, thisaward honours the Executive Chairman’s out-standing dedication and support to educationand the development of future industry leadersthrough his Foundation.

TIACA established the Hall of Fame in 1997 torecognise and honour air cargo professionals whohave played a leading role in the progress ofaviation and who through their foresight, perform-ance and dedication have created and grown theindustry. The official ceremony in the presence ofPrince Joachim of Denmark and many top man-agers in the industry took place in May of thisyear in Copenhagen. Since Klaus-Michael Kuehnecould not be present in person, the award wasaccepted on his behalf by Roland Bischoff, GlobalHead of Airfreight.

Reinhard Lange, COO Sea & Air Logistics andDeputy CEO of Kuehne + Nagel International AG,has also received a major honour. He has beeninducted into the Maritime Hall of Fame. Since1993 the Maritime Association of the Port of NewYork & New Jersey has conferred this award uponpersons who have performed outstanding servicesto the development of seafreight.

Ship christening – always a special event

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35P E O P L E & N E W S. . . . . . .


The Kuehne + Nagel Oldies Club inHamburg, whose members meet onceevery month for an informal and relaxeddiscussion, has officially existed since1982. The conversations cover a widerange of topics: They may concernpolitics, the economy, musical events,and, of course, news relating to Kuehne +Nagel. Group events – visits to factories or museums and many otheractivities – are regularly on the pro-gramme and are organised by theperson who has the best knowledge ofthe relevant field. The club now has 16 members, who show a lively interestin the meetings. At the end of AprilKlaus-Michael Kuehne, Executive Chairman of the Board of Directors ofKuehne + Nagel International AG,invited the former employees to theKuehne + Nagel Germany headofficein the Hamburg HafenCity.

Oldies meeting

ObituaryOtto Werther died on 22 June 2008 at the age of 85. He spent

more than 50 years in the service of the company. As a member

of the Management Board, initially in Germany and ultimately

with Kuehne + Nagel International AG, he decisively influenced

the development of the global forwarding business. Kuehne +

Nagel mourns the loss of an exceptional person whose expertise

and human qualities won him high esteem among his staff,

colleagues and numerous business friends.

www.kuehne-nagel.com

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