ITJInternationalTransportJournal

SpecialIran / Iraq 34

Growing disparitiesStrength of operatingmargin also dependson size of shipping line 11

Continued openingIran to promotefreight transit byrailway too 40

Done its homeworkWhy a Kazakh enterpriseis investing in Ukrainethese days of all days 46

23 · 26 | 20 June 2014www.transportjournal.com

ENGLISH EDITION(also available in an identical

German and French version)

3International Transport Journal 23-26 2014 Contents

Iran&Iraq 34

Special in this issue

No objections from Brussels 15

The P3 project is on course for success. The USA’smaritime commission had already not object tothe plans, and now the EU’s competition authorityhas also seen no cause to investigate the plannedMaersk, MSC and CMA CGM alliance.

Optimist’s summit in Doha 19

The world aviation association Iata believes thatthe hundredth anniversary of civil aviation si-multaneously also marks the moment when theindustry exits its trough. The good mood hidesthe fact that some problems remain, however.

Realism called for in Kiev 24

The political tension in Ukraine poses quite someproblems for the logistics industry. ITJ correspond-ent Josef Müller recently visited a country tornbetween patience and a desire to act, and ana-lysed the risks and opportunities it has.

Cover: A freight train. Photo: Thinkstock

Recent signs pointing t

o a better economic

climate in Iran, thanks

to improving rela-

tions with several tradi

ng partners, have

been welcomed by bus

iness communities

the world over.

Accordingto Iran’s m

inistry of econom-

ic affairs and financ

e, 800 foreign in-

vestors visited the cou

ntry in theperiod

followingthe easing

of sanctions up to

early Mayof this yea

r. Yousef Sherkati,

CEO andmember o

f the board of the

international group T

ransinvest,a com-

pany domiciled in Sw

itzerland, recently

shared hisenthusiasm

about therevival

of trade with Iran wi

th ITJ correspond-

ent Christine Kulke-

Fiedler.

How important is Ira

n in Transinvest’s

overall business?

Several companies and

networks in our

group have been inv

olved in transport

and logistics operati

ons withIran for

more than50 years, an

d have hadoffices

of their own there for

a very longtime.

Our entities also focu

s on transit opera-

tions, taking internatio

nal consignments

through Iran. One o

f our firms that I

want to draw your

attention to is the

Perse International Fo

rwarding Co. This

network ofcompanies

is active inevery

Iranian transport and

logistics field.

In what ways has yo

ur group’sinfra-

structureexpanded

in Iran inrecent

years?

We aren’tonly exper

ienced in the mar-

ket, with developed k

now-how,but also

have the appropriate

infrastructure in

Iran itself,as you say.

Our focusin the

years before the revo

lution – especially

in the period before

the collapse of the

A fresh windin trade with

Iran

A morning breeze in the

east

Photo: Thinkstock

36 Turkish companie

s continue

to bank onnorthern Ira

q

37 AqabaContainer T

erminal

improves links to the hin

terland

39 Port of Basra grow

ing

40 Iran hoping to qu

adruple

transit freight traffic

42 Teheran linked by

air

43 Sanctions eased

IRAN / IRAQ

The ITJ interviewed You

sef Sherkati, CEO and

member ofthe board o

f Transinvest.

Phot

o:Tr

ansin

vest

Soviet Union – was

on the regions in

the north. Our tra

nsit freight passed

through the former S

oviet Union, via

Djulfa, through Turk

ey, via Bazarghan

and acrossthe Caspia

n Sea. Later the

Persian Gulf port of B

andar Abbas was

developedand expan

ded, and our focus

shifted there.

Your groupis obviousl

y well-positioned

for an upturn in intern

ational trade with

Iran. Are you already

experiencing this

growth?

Iranian imports decline

d drastically during

the embargo, but we w

ere able to retain all

our managers by conc

entrating on provid-

ing servicesto the min

erals export sector,

as well as offering frei

ght transitfacilities

to and fromcentral Asia

through Iran. We

presently have many n

ew enquiries coming

in and are making many

new contacts. We

hope that these will re

sult in concrete new

business opportunities

before long.

You have adirect busin

ess interestin the

port of Bandar Abbas.

Several large ship-

ping linesdecided no

t to call atBandar

Abbas anymore in rec

ent years. Are some

of these activities retu

rning?

Our grouphas more th

an 700,000sqm of

terminal and storage ar

ea in Bandar Abbas

5 Editorial

6 People&Companies

9 Comment

10 Insurance&Legal Affairs

11 Ports&Shipping15 Americas: Veritable arms race in the west16 Sohar replacing Muscat as Oman’s trade port17 Sailors’ salary payments in crisis regions

19 Aviation20 European freight hubs record 3% rise in April20 Chep and Jettainer acquire new clients20 Three Dreamliner operators and their plans

23 Forwarding&Logistics23 Röhlig and Stef present their results for 201323 Wtransnet wins at home at the SIL trade fair25 European networks doing well

26 Hazardous Goods

29 Rail / Inland Shipping /Road Haulage29 New transport offer to and from Norway30 Expansion in the USA – Linkages in India31 EU’s 4th railway package on the way

32 The ITJ at 75: Industry insecurity

33 Focus on Switzerland

44 Regional Focus44 Central Europe / Baltic and Nordic States45 Eastern Europe47 Americas49 Africa

50 Miscellaneous /Masthead

51 A Time for Reflection /Advertisers’ Index

Georg Schuch and Günter Bischof of Hans Künz 12Marco Gredig of Cargologic 33Yousef Sherkati of Transinvest 34Siddique Khan of Globalink 46

Interviews with...

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5International Transport Journal 23-26 2014 Editorial

Dear readers,Sometimes it is rather difficult to concentrate on matters in

hand when we are faced with human tragedies, such as the

ones taking place in Iraq, Ukraine and Nigeria today – to

name just a few. But life nevertheless goes on – as banal as

that may sound – and in this life it remains important to us

to stay abreast and keep you informed of global develop-

ments, particularly as they touch on the logistics industry.

In our Iran / Iraq Special (pages 34-43 of this issue of the

ITJ), we analyse the changing structure of Iran’s external

trade, highlight the overarching importance of lorry traffic

between Iraq and Turkey, and report on port expansion ini-

tiatives, as well as on efforts to boost trade with Africa and

India – all very promising, despite the problems besetting the

region.

As you know, the ITJ is celebrating its 75th anniversary

next month. The exact date may fall in July, slap-bang in the

middle of West Europe’s summer, but as the journalist with

the longest standing at the International Transport Journal I

can assure you that the ITJ’s, as well as the transport and lo-

gistics industry’s, global approach does not allow us to enjoy

a summer break, with the leisure to look back at the past.

Anyway, it is more constructive to look at the present and

the future. There is never a moment when there is not some-

thing new being initiated somewhere such as the promotion

of new intra-African maritime shipping links (page 49), or an

existing project being completed, such as the expansion of

ports on the eastern coasts of the Americas (page 15).

We have also heard from Drewry in London that maritime

shipping volumes on intra-Asian routes are on the rise again,

thanks to cheaper charters and economies of scale on the

trade between China and Southeast Asia,

and thanks also to the formation of

new alliances between regional

shipping lines.

We hope you manage to retain

your business orientation in the

coming months and simul-

taneously enjoy some of

the pleasures of life.

Jutta ItenEditor

The European Transport Organisation

Europe

Top regional aviation manATR, an aircraft producer specialising inthe regional aviation market, has appointedPatrick de Castelbajac as CEO. He succeed-ed Filippo Bagnato. De Castelbajac, whostarted his aeronautical career at MBDA(previously Aerospatiale Missile) beforespending three years as a lawyer at Baker&McKenziein Paris, joined ATR from Airbus. In 2002 he joinedAirbus’s legal affairs directorate and became head ofcontract negotiations in the corporation’s commercialdirectorate in 2010.

Hughes succeeds Vertannes at IataGlyn Hughes has been selected as Iata’s new global headof cargo, succeeding Des Vertannes, who left the post af-ter four years in office (see ITJ Daily of 1 April). Hughesjoined the trade association in 1991 and enhanced andexpanded its cargo accounts settlement service (Cass).Hughes will report to Tony Tyler, Iata’s director generaland chief executive officer.

New president for Erfa in BrusselsIrmtraut Tonndorf, Hupac’s spokesperson, has becomethe new president of the European Rail Freight Associa-tion (Erfa) in Brussels. She succeeded Europorte’s Fran-çois Coart. Frank Schuhholz of the Dutch enterpriseERS Railways was elected vice-president.

Erfa was founded in 2002, and represents the interestsof independent and private railfreight operators in theEU. The association currently has 31 members, 22 ofwhich are railfreight operators and service providers andforwarders, and nine national railfreight associations.

Back in actionEwald Kaiser is set to become the director of overlandtransport at Schenker on 1 September. Kaiser was CEO(2008–2013) of the Swiss firm Militzer&Münch andwill take over from Karl Nutzinger (see ITJ 21-22/2014,page 6). Hansjörg Rodi, CEO of Schenker Germany,has been asked to filled the vacant position of contractlogistics director with effect from 1 October.

Munich firm setting up in HamburgThe Munich-based forwarder Robert Kukla, a multi-modal specialist, opened a branch office in Hamburg,managed by Dirk Wessels, on 1 June. Wessels previous-ly worked as sales director for the Hamburg-based boxshipping line OPDR. The branch complements Kukla’sMunich, Rotterdam, Genoa and Moscow offices.

Moving to a 4PLKai Peters is the new vice-president of the 4PL unit of4flow. Peters left the Hamburg branch of K+N, wherehe was 4PL business development manager, to take onthis challenge. At an earlier stage of his career he was agroup logistics vice-president at Panalpina in Basel.

Confirmed in officeThe board of CMA CGM, chaired by CEOJacques R. Saadé, met recently and ap-pointed Rodolphe Saadé as vice-chairmanexecutive officer, or second-in-command.The move is part of Jacques R. Saadé’s planfor Rodolphe Saadé to succeed him. TanyaSaadé Zeenny was named executive officerin charge of communications, accountsand marketing, amongst other things. Theboard also confirmed its full confidencein Farid T. Salem as executive officer.

Patrick de CastelbajacPhoto: ATR

Rodolphe SaadéPhoto: CMA CGM

6 Companies & People International Transport Journal 23-26 2014

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Big Brown’s top managerDavid Abney has been named as the newCEO of the US parcel service providerUPS. He will take over from Scott Davis,who has served as CEO since 2008 andwho is retiring in September. He willbecome UPS’s non-executive chairman.Abney’s picture-book UPS career began in 1974, when hewas a part-time loader. He then held various operationalpositions over the next 40 years. In his last position ofCOO, Abney was in charge of logistics, sustainability,engineering and investment in alternative-fuel fleets.

New driver for MNX ExpressThe board of the US service provider MNX appointedPaul J. Martins as CEO on 4 June. He will report directlyto Matt Dailey, chairman of the MNX board. In the pastMartins worked for UPS, Mercury Air Cargo, Towne AirFreight and lastly for Pacific Logistics. MNX is a globalprovider of express transport and logistics services.

An Air Canadian chairing IataCalin Rovinescu, president and CEO of Air Canada,has assumed his duties as chairman of the Iata boardof governors for a one-year term. Rovinescu succeededRichard H. Anderson, CEO of Delta Air Lines, whoseterm expired at the association’s recent 70th AGM inDoha. Rovinescu joined Air Canada in 2000 as executivevice-president for corporate development, and was chiefrestructuring officer when the airline was streamlined in2003 to 2004. Rovinescu rejoined Air Canada in 2009. Inthe interim he co-founded and was principal of GenuityCapital Markets, an independent investment bank.

LA port director settledThe Los Angeles city council recently defi-nitely voted Gene Seroka into the office ofexecutive director of the port of Los Ange-les, for which he had already been nomi-nated by Los Angeles mayor Eric Garcetti.Seroka is currently head of commercialactivities in the Americas region for Ameri-can President Line (APL). He was previ-ously also vice-president for the MiddleEast and East Africa, based in Dubai, andworked for the NOL group from 2008 on-wards. Seroka succeeded interim executivedirector Gary Lee Moore.

Asia

New president for SIA CargoChin Yau Seng has been named as the new president ofSingapore Airlines Cargo. He is taking over from LeeLik Hsin, who has been granted a leave of absence fromthe group to join Tiger Airways Holdings as CEO. Chin,Singapore Airlines’ senior vice-president for sales andmarketing, joined SIA in 1995 and has since served invarious positions in the head office as well as overseas.He was chief executive of the SIA subsidiary Silk Airfrom 2007 to 2010. In 2011 and 2012 he also took afurlough from SIA and served Tiger Airways Holdings.

Maskargo’s no. 1 pilot departsMohd Yunus Idris has resigned as the CEO of Maskargo,the airfreight unit of Malaysia Airlines. Mohd YunusIdris, a 30-year veteran of the group, joined Maskargo in1994 as a cargo and planning manager. He was in chargeof the Kuala Lumpur airport cargo development project.He became general operations manager in 2001, generalsales manager in 2007 and acting CEO of Maskargo in2011. He was officially appointed CEO in 2012.

David AbneyPhoto: UPS

Gene SerokaPhoto: Port of Los Angeles

8 Companies & People International Transport Journal 23-26 2014

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Trio for IrclassIrclass, the Indian Register of Shipping,is boosting its global presence with threenew senior executives. Narayanan Shankarwill join Irclass in Singapore as a seniorvice-president of business development.He will co-direct business developmentand strategy there with Anil Devli, chiefoperating officer (commercial). PraveenKumar Mishra was chosen for the role ofvice-president in London, and Ravi KironKalra was promoted to head of safety fromhis previous role as senior principal surveyor in Mumbai.The appointments are part of the society’s strategic planto expand its capabilities and geographical reach.

Congratulations

Laurels in MaltaThe Thomas Smith Group in Malta haswon a Lufthansa Cargo award. ThomasEgenolf, Lufthansa Cargo’s director forItaly, Malta, the UK and Ireland, present-ed the honour to Bernard Muscat, assis-tant general cargo manager, and RamonAzzopardi, logistics manager, represent-ing the group’s forwarding division. Thiswas the firm’s fifth consecutive recogni-tion from Lufthansa Cargo of supportfor the carrier’s airfreight and logisticsservices as well as for growth in volumes.

CommentMining the rich data minesOne of the many interesting aspects ofthe transport and logistics business thatits protagonists are very proud of is thecomplexity of the supply chains in the sec-tor. There is not one entrepreneur in ourindustry who does not promise shippersnew opportunities to optimise logisticsactivities and introduce innovative solu-tions. The basis for such efforts is laidby collecting and analysing the relevantsupply chain data, from the macro downto the micro – and then the micro-micro – level. Expertshave estimated that no less than 30% of all logistics costsare generated by the last mile. Every improvement can bedecisive in the logistics industry – with its weak margins.

This is one of the reasons why data mining and bigdata are in fashion. Data analysis is thought to be worthits weight in gold. The technology is openly or commer-cially available, and both can be deployed together. Aspot check conducted by Heise found out that almost 50%of all companies worldwide use both free as well as com-mercial tools to analyse data. Many more firms from theUSA and Canada (33%) invest in commercial softwarethan is the case in Asia (15%) or Europe (14%).

As we know, a machine is only as good as its driver,however. Companies’ willingness to invest in this fieldis not limited to equipment. Gartner has projected that4.4 million data analysts will be needed worldwide by2015. Where on earth are they going to come from?McKinsey’s experts have established that the USA alonewill need another 190,000 specialists by 2018. Competi-tion for the best analysts is programmed.

There is nevertheless entrepreneurial reason enough forconfidence in a firm’s ability to recruit suitable candidatesfrom the ranks. The technology of computer systems is im-portant, for sure, but industry knowledge also remains oneof the main precondition to glean any practical insightsfrom the collection and analysis of data. As the presidentof the German IT association said: «Pure data analysis,without any understanding of the field of application, isnot going to offer adequate rewards.»

Ne’er a truer word was spoken.

ChristianDoepgenITJ editor-in-chief

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Narayanan ShankarPhoto: Indian Register of Shipping

B. Muscat, T. Egenolf,R. Azzopardi (from theleft). Photo: Thomas Smith Group

9International Transport Journal 23-26 2014 Companies & People

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10 Insurance & Legal Affairs International Transport Journal 23-26 2014

The latest reform of the Turkish commer-cial code (TCC) is founded on the provi-sions of the Convention on the Contractfor the International Carriage of Goodsby Road (CMR). Domestic transport inGermany is governed by §§407 et seq.of the German commercial code (HGB),whose provisions are not fully identicalwith those of CMR.

Contractual regulation outdatedAccording to the legal practice of theTurkish court of appeal, however, it wasalready acknowledged prior to the reformof the TCC that in the event of loss ordamage, the provisions of the CMR werealso applicable to the contracting partiesin the case of domestic transport by road.Before the reform came into force, thishad to be explicitly agreed between theparties, since the law prescribed that theCMR was and is applicable only to cross-border transport.

In the event of loss or damage to cargoin domestic transport in Turkey or Ger-many, the amount of liability would nowbe identical at 8.33 special drawing rights(SDR) per kilo of gross weight in bothcountries. Prior to the latest reform ofTurkish transport law, no limitation ofliability was possible for domestic trans-port in Turkey. This was prohibited by Ar-ticle 766 of the Turkish commercial code.

Carrier has more responsibilityThe practice of the Turkish court of appealdiffers from German practice in assigninggreater responsibility to the carrier for thetransported cargo. For according to thelaw as interpreted by of the Turkish courtof appeal, the Turkish transport operatoris responsible for ensuring the safe andsecure loading and transport of goods.This ruling is based on the principle of«good faith» in accordance with article 3of the Turkish civil code.

In Germany, on the other hand, ac-cording to §412 of the commercial code,the consignor is responsible for loadingin a manner safe for transport, and the

carrier for the safe loading of the vehiclefor operations. The carrier must informthe consignor of «improper loading orstowage», for instance by a note in thetransport document. If the carrier fails tocomply with this duty to inform thoseconcerned he bears 50% of the liabilityin the event of loss or damage, accordingto §44 of the Turkish code of obligations.

This principle of co-responsibility alsoexists in Germany, but in the event of lossor damage its amount is determined fromcase to case.

Limitation of liabilityArticle 886 of the Turkish commercialcode – as does §435 of the German com-mercial code – stipulates that it is pos-sible for a carrier’s liability limitation orexemption to be completely invalidatedin the event of a claim for loss or damage.The reformed transport law differs fromthe old version, in that loss or damageresulting from gross negligence no longerhas the same status as an intentional dam-age event.

According to the law in both coun-tries, a carrier has unlimited liability forloss or damage in the case of a carrierexecuting the transport in a grossly neg-ligent manner (intentionally or recklessly)

and with knowledge that damage wouldprobably arise from this behaviour. If thiscondition is fulfilled, liability is not lim-ited either by law or by the general termsand conditions of business.

Liability in maritime lawThe Hague-Visby Rules (HVR) apply inTurkey, together with the Hamburg Rules,which fill a legal loophole. In Germanythe reformed maritime law came intoforce on 25 March 2013. The maritimelaw of the two countries differs, particu-larly with regard to a maritime carrier’sliability for either loss or damage due todelays.

A maritime carrier is not liable forclaims that result from fire or nauticalerror in Turkey, according to article 1180of the TCC. In Germany, on the otherhand, a maritime carrier is also liable inthe case of fire and nautical error, in ac-cordance with §512 of the German com-mercial code.

In Germany and Turkey, uniform rulesapply to the amount of compensationpayable for damage to goods. This is fixedat 666.67 SDR per package, or 2 SDR perkilo of gross weight, whichever is moreadvantageous from the claimant’s pointof view. Eckhard Boecker

Comparative transport law

What to look out for in TurkeyThe new Turkish commercial code (law no. 6.102), which came into force at the end of 2013, brings a modernisation of Turkish

commercial law, and facilitates entry into the Turkish market. At the same time, parts of Turkey’s transport law have also been

reformed. This is reason enough to analyse and highlight important common features and differences in the field of transport law.

Turkish commercial law opened the doors to the country in 2013. Not all the rules and regulations arethe same in case of damages however, with carriers bearing greater responsibility in Turkey.

Phot

o:Th

inks

tock

11International Transport Journal 23-26 2014 Ports & Shipping

The difference between the earnings oflarge and small shipping lines is increas-ing. A recent report published by the ana-lyst Alphaliner, which assesses the resultsattained by the 17 main ocean carriers inthe first quarter of this year, has arrivedat this conclusion.

Maersk Line’s above-average result, incomparison with the rest of the playersin the market, is the most striking ele-ment of the report. The Danish enterpriseregistered an operating margin of 6.4%between January and March, placingit miles ahead of the (mostly negative)returns generated by the other 16 lines.Their average margin came in at –2.6%.Over and above this, Maersk’s 9% ebitmargin gap over its competitors is thelargest quarterly performance gap it hasachieved since 2009.

The Marseille-based shipping corpora-tion CMA CGM also generated a positivecore operating margin (4.7%). This illus-trates that large container lines have dis-tinct advantages vis-à-vis smaller shippingcompanies. Taiwan’s Wan Hai Lines andJapan’s K Line are the only other entitiesof the 17 analysed, besides the two indus-try giants, that reported positive resultsfor the quarter.

The operating profit (adjusted fornon-recurring items) achieved by theDanish line Maersk (USD 415 million)and by CMA CGM (USD 186 million)accounted for 96% of the profits reportedby these four carriers, however. Wan HaiLines’ profits came to USD 15 million,and K Line clocked in USD 9 million.

The average margin of –2.1% registeredin the first quarter did at least representan improvement over the –3.5% recordedin the equivalent quarter of the previousyear. It nevertheless became clear that themajority of carriers had not been able toreverse the trend that had resulted in theoperating figures turning red. Most of thecorporations concerned said that exces-sive competition as well as weak freightrates were the underlying reasons for thepoor performance.

This has brought those voices calling forincreased industry consolidation to thefore again. Special ownership structures,as well as conditions allowing govern-ments or economic holdings to influenceattempts to merge, often obstruct devel-opments in this direction.

One notable exceptionAlphaliner pointed out in its report thatmany of the 21 largest container shippinglines have ownership structures that re-sult in control being exercised either bya state or by a family-owned shippingcorporation – even though 14 of the 21entities analysed are listed on variousstock exchanges. These structures create asubstantial impediment to consolidationamongst top container lines.

Alphaliner believes that the mergerbetween Germany’s Hapag-Lloyd and itsChilean partner CSAV will remain anexception in the near future, as most ofthese two collaborators’ competitors havenot made any noises implying interest infurther close cooperation soon.

The difficulties experienced in the(failed) negotiations for a collaborationdeal between Hapag-Lloyd and HamburgSüd underlines this assessment. The dis-tribution of shares was a key issue there.

In the case of CSAV, the Quinenco fami-ly was prepared to accept a Hapag-Lloydminority stake. Keeping a tight rein onoperations and retaining control of thefirm are the most important aspects formost lines when considering such a move.

Strong impediments to mergersNaturally enough, these are strong im-pediments to a merger. When it comesto corporations that are controlled eitherby the state or by a keiretsu (a Japanesebusiness holding), the position is evenmore difficult. A potential merger ofCosco and CSCL, or of K Line, MOLand NYK, would not be easy to realise,as there are a plethora of deeply-rootedpolitical interests at stake. The maritimeshipping industry’s last great merger – atleast until the ink on the contract signedby Hapag-Lloyd and CSAV is dry – tookplace in 1997 (see below). av

Maersk Line and CMA CGM remain the league leaders

An ever-widening gap at the topEconomies of scale are having an impact. A glance at the quarterly results of the 17 most important liner shipping companies shows

that large lines retain substantial advantages vis-à-vis smaller ones when it comes to generating positive returns. A wave of

mergers is nevertheless not very likely, as ownership structures and political interests often impede partnership deals.

Shipping lines’ operating margins and revenues in the first quarter of 2014.

Gra

ph:A

lpha

liner

Large recent shipping line mergers

1997 P & O and Nedlloyd join forces1997 Hanjin buys 70% of DSR-Senator Lines1997 NOL acquires APL1999 Maersk takes over Sea-Land Service Inc2005 Maersk buys P & O Nedlloyd2005 Hapag-Lloyd takes over CP Ships

12 Ports & Shipping International Transport Journal 23-26 2014

Günter Bischof, managing director of thecrane manufacturer Hans Künz, startedthe interview by pointing out that «thebusiness environment is becoming evermore challenging. But we managed toclose last year at the same level as the yearbefore. I want to emphasise, however, that2012 was a record year for us. For 2014the business outlook is rather better thanit was for 2013.»

Nevertheless, the managing director isnot completely satisfied. «We had otherplans, and ultimately we undershot ourtargets. But we believe that we’re back onthe road to growth now.»

In any case, said Bischof, two thingshave changed over the past few years.In 2009 his company made a successfulentry into the US market with its rail-mounted cranes. «Since then we’ve soldaround 20 container cranes in places likeOhio, Florida and New York. What made

this development even more pleasing isthe fact that traditionally, US companiesprefer cranes with rubber tyres. We brokenew ground there with our rail-mountedcranes, which are the standard for inter-modal transport in Europe, and we hopethat this market will continue to open upfor us,» the general manager said with vis-ible confidence.

The drought has passed«The second happy development has to dowith the Maasvlakte II terminal in Rot-terdam, where we’re back in business withautomated stacking cranes,» he contin-ued. «Having received a large order froma terminal in Hamburg-Altenwerder – wesupplied it with more than 50 stackingcranes, all told – a relatively long periodwent by before we managed to land theorder for Rotterdam in 2012.» The stack-ing cranes have already been delivered to

the Maasvlakte II terminal. By July of thisyear all 26 of these stacking cranes, alongwith two rail-mounted cranes, will havebeen commissioned for Künz’s customerAPM Terminals.

Europe – with the German-speakingcountries particularly prominent – is thecore market for cranes made by Künz.But the firm is also very active in EasternEurope, Czechia and Slovakia. In addi-tion, Künz’s business is also developingvery nicely in the French market, whereit is present in the ports of Strasbourg andParis. There too Künz is hoping for morepositive developments.

Technological innovationsWhen we pointed out that the crane busi-ness may well take a turn for the worseas a result of the many ports currentlymerging, and thus potentially needingfewer cranes as they pool their resourc-es, Bischof responded by saying that helooks at that differently. «Rail-mountedintermodal cranes are the equipment ofchoice when large volumes have to behandled in intermodal centres. You cansee that very well in Rotterdam, for exam-ple. When only small quantities of goodshave to be handled, on the other hand,then rubber-tyred cranes, reachstackers orsimilar equipment is usually used.»

At Künz the process of technologi-cal improvement to its cranes is ongo-ing. Managing director Georg Schuchexplained that «last year, we developed anew concept for the hoisting mechanism,especially for our fully-automated stack-ing cranes, which completely does awaywith pulleys. Our solution provides thehighest degree of stability to the suspend-ed load. Wear, and the associated highcost of cable replacement, is reduced toa minimum. This new type of crane will

Eyeing new markets

Rail-mounted crane systemsnow increasingly internationalHans Künz is a crane manufacturing company based in the Austrian town of Hard. The firm specialises in building intermodal crane

systems for handling containers between water, rail, and overland transport systems. Georg Schuch, a managing director of Hans

Künz, and Günter Bischof, also managing director, aired their views of the current state of their business, the industry in general

and their future prospects in a conversation with the ITJ’s Jutta Iten.

A Künz crane at the CSX terminal in Columbus (Ohio).

be put into service for the first time ever in Rotterdam.»Not without a touch of pride Schuch added that Künzholds the patent for this new concept.

A further innovation which the crane manufacturerintroduced to the market and for which it also holdsa patent improves the crane travelling gear for its rail-mounted cranes, which enables the gear to be rotatedhorizontally.

Protecting the environment of the waterways«One of the benefits of that system (the capability ofrotating the gear horizontally) is significantly less wearto the wheels and tracks of a crane,» said Schuch. He em-phasised the importance of continuously developing thecorporation’s products. In addition to mechanical andelectrical innovations, he pointed to the many electronicadvances from which the company can and must reapthe benefits. «A new innovation has been introduced atthe Rotterdam terminal, which offers a completely newstandard. Every movement is electric, there are no morehydraulic systems in the crane at all.»

That represents a further step towards protecting theenvironment of the waterways that Künz strives for. Thisconsciousness is a main focus of the company, of course,but Schuch added that it is also increasingly a concernamongst the crane manufacturer’s customers too.

A more international outlook in the third generationThe company Hans Künz is a family-run firm. We askedSchuch, a member of the family that owns the enter-prise, about the advantages that come with managing afamily-operated company.

«The capability to make quick decisions, as well asour efficient processes, are certainly advantageous. Weall know each other well in the family, of course. Andanother thing is that, after a company has been run by asingle family for several generations, everybody is alwaysthinking of the next generation – that is, the continua-tion of the company. We’re already in the third genera-tion, but in the fourth generation there are already manyfamily members who are interested in the business. Theyare getting the right training and education to this end,»said Schuch.

He sees this as an investment in the company’s effortsto remain sustainable. At the moment, the firm has noconcrete plans to expand. In 2006 Künz carried out animportant expansion measure with the opening of itsown production company in Slovakia, and continued

robust expansion in the years to 2009, particularly in its home market(largely in Germany).

Overall, Künz has become far more international, which has hada significant impact on the manufacturer’s resources. «We’ve got toobserve new safety regulations, plan for time differences, use foreignlanguages and so forth.» That leaves plenty of things to plan for, evenbefore the firm’s further expansion is addressed. But once the economypicks up management will reconsider the issue, Schuch closed.

Managing directors Georg Schuch (on the left) and Günter Bischof.

13International Transport Journal 23-26 2014 Ports & Shipping

• Founded by Hans Künz in 1932, the firm is in the hands ofthe third generation of the Künz family today.Its main office is in Hard (Vorarlberg, Austria).

• Activities: Manufacturing container cranes for intermodaltransport, special cranes, customer-specific services, forexample multi-year maintenance agreements (life-cycle costcontracts), and supplying hydroelectric plant equipment,amongst other services.

• Künz employs approximately 400 people in its productioncentres in Hard, Styria and Slovakia.

The company Hans Künz – facts and figures

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Boxes onto the scales...The International Maritime Organiza-tion’s Maritime Safety Committee re-cently approved draft amendments tochapter VI of the International Conven-tion for the Safety of Life at Sea (Solas),which addresses the verification of theweight of maritime containers. The newregulations provide for the mandatoryverification of the gross mass of con-tainers as a condition for the loading ofpacked export boxes aboard ships. Theyalso stipulate that the terminal of load-ing and the container shipping line con-cerned have to be informed of these facts.

Verification can be carried out bytwo different methods. Either the loadedboxes can be weighed on calibrated andcertified scales, with another option al-lowing for the individual componentsof a container’s load to be weighed andthen added to the weight of the emptycontainer. The approved changes to theSolas convention are expected to be fi-nally adopted by the Maritime SafetyCommittee in November 2014, and thenenter into force in July 2016.

...but not under the scanner

The USA’s Department of HomelandSecurity has postponed the scanning ofevery container imported into the coun-try, originally scheduled to start in July.The regulations will now be implementedin two years at the earliest. Critics havewarned the department that scanningboxes before they are hauled aboard a shipin a foreign port of loading is not practi-cal, and also too expensive. The approachis said not to represent the best option toprotect US ports. The introduction of themeasure was previously already put backfrom 2012 to 2014. av

Europorte in Bordeaux

France’s Grand Port Maritime de Bor-deaux has chosen the railfreight companyEuroporte, a subsidiary of the GroupeEurotunnel, to operate the deep-waterVerdon terminal in the gateway on theAtlantic coast. The Verdon facility spe-cialises in handling the latest generationof containerships and is expected to playa key role in the goods flows to and fromthe region. It will be served by regular railshuttle connections to and from the restof southwestern France, which is expectedto lead to a shift of freight volumes fromthe roads to other modes of transport.

Bordeaux, at the mouth of the river Gironde.

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15International Transport Journal 23-26 2014 Ports & Shipping

The European Union’s antitrust regulators do not expect an anticompetitiveimpact to arise from the planned P3alliance between MSC, CMA CGMand Maersk Line. Antoine Colombani,spokesman for the EU’s commissionerfor competition, told the media: «At thisstage, the Commission does not intendto open proceedings in relation to P3 orG6.» He simultaneously underlined thefact that the Commission will followmarket developments closely and remainvigilant with regard to any impedimentsto free competition that may arise fromthe implementation of P3 or G6.

This latest development means thatthe establishment of the shipping market’s largest alliance has already takentwo important hurdles. In March thisyear the USA’s Federal Maritime Commission (FMC) already allowed the P3network agreement to become effectivein the USA (see ITJ 1314/2014, page 12).The alliance has yet to receive approval

from the authorities in China, however,as well as from those in some other smaller jurisdictions.

Maersk Line, MSC and CMA CGMonly recently announced that they expected their new P3 alliance to commence operations in autumn this year.

This is slightly later than the originalplan to get going by midyear. P3’s fleetof 252 ships will offer 2.6 million teu ofcapacity. The network will offer 28 rotations on the Asia–Europe, transpacificand transatlantic trades. av

EU competition authority not planning to investigate P3

Green light from Brussels now tooThe P3 network is coming along. First the USA’s maritime commission and now the EU’s competition authority has seen no cause

to investigate the planned alliance on account of potential anti-competitive aspects. The decision represents a clear signal for

other planned deals – though the industry is still far away from true consolidation (see also page 11).

The P3 partnership has no opposition to fear from Brussels at the moment.

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Western coasts of the Americas under competitive pressuresTerminal operators on the western coastsof the Americas continue to be involvedin a veritable arms race. Thus Chile’sTerminal Pacífico Sur Valparaíso recentlypurchased three new shiptoshore container cranes with an outreach of 62 mand a safe working load of 65 t under atwinlift spreader. These are the largestunits the crane manufacturer LiebherrContainer Cranes, which is based in Ireland, has ever delivered to a port on thewest coast of South America.

The reasons for these developmentsare rather obvious. The requirementsmade of gateways’ equipment are changing – in line with shipping lines’ practiceof deploying everlarger ships in their services to and from South America’s westcoast. More and more postpanamaxvessels now call at the region’s ports (seeITJ 1920/2014, page 12). One of the re

sults is that Chile has registered an overallincrease in container movements of morethan 10% over the last three years.

The port of Seattle, in the state ofWashington in the US northwest, is alsocommitted to expanding its facilities. Thehub’s harbour commission recently gavethe goahead in principle for the modernisation of its terminal 5, which is 50 yearsold. The investments will encompass atotal of approximately USD 4.7 million.The funds will be dedicated primarily todeepening berths’ depth of water and toimproving the overall quality of the facility’s equipment.

The motivation is the same as that afew thousand kilometres south on thewest coast of the Americas – namely thatthe ships that call at the port are gettinglarger. The gateway’s competition is notresting on its laurels either. Numerous

ports on the US west coast are upgradingtheir facilities, with the continent’s largestports, namely Long Beach and Los Angeles, taking the lead. Additionally, pressure from the USA’s eastern ports is alsogrowing, on account of the expansion ofthe Panama Canal. Seattle port commissioner John Creighton is illustrates thesituation: «We’ll simply disappear if wedo not retain our ability to compete.»

Although work on the terminal isnot set to start before 2016, the facilityis already closing its gates this summer.From then on, goods will be handled interminal 18.

It is not yet fully clear from which potthe investment of USD 180–250 millionwill come. At least the decision taken bythe harbour commission at the beginningof June has now set the ball rolling for theplanning processes. av

16 Ports & Shipping International Transport Journal 23-26 2014

There will be no more containerships orother merchant marine trading vesselssailing to and from the Omani port ofMuscat (also known under the name ofMina Qaboos) from the end of Augustonwards. The hub is being converted intoa tourism area, and all of its commercialshipping activities are being transferredto the port of Sohar, located around230 km northwest of Muscat.

Early last year the operator of theOman International Container Terminal(OICT) signed a development agreementfor the expansion of its 70 ha containerhandling facility. The move will see thecentre’s capacity increase from 800,000to 1.5 million teu, and the gateway’s exist-ing 28 ha yard space more than doubled.

Seven post-panamax quay-side harbourcranes that can handle post-panamaxcontainerships will be introduced, and 14rubber-tyred gantry cranes will also be in-stalled. Some lines, such as CMA CGM,serve both Sohar as well as Muscat. Nowthe French corporation is set to delete thelatter hub completely from its schedulewith effect from mid-August.

In the meantime, Sohar has set an im-portant new operational milestone withthe arrival of the first 10,000 teu ship atthe newly-expanded OICT.

The Sohar port and free trade zone isrun by the Sohar Industrial Port Com-pany (SIPC), a joint venture between theDutch port of Rotterdam and the state ofOman. Antje Veregge

New commercial port in Oman

Muscat closing...All commercial activities in the Omani maritime hub in Muscat will be transferred to the

port of Sohar, located approximately 230 km away, from the end of August onwards.

By handling its first very large box ship Sohar has proven that it is ready for action.

The view from the port of Muscat will be unspoilt by commercial shipping activities in future.

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In briefUpgrade. Italy’s Genoa-based Messina Linehas upgraded its ro-ro services from thewestern Mediterranean to West Africa byentering into a vessel sharing agreementwith Marguisa. The partners will jointlydeploy four ro-ro vessels and offer depar-tures from Genoa, Marseille and Valencia toDakar, Abidjan and Lagos every twelve days.The service also provides onward connec-tions from Genoa for cargo originating inthe Middle East, the Red Sea region, South-east Africa, the eastern Mediterranean andNorthern Africa. www.messinaline.it

Maiden call. The Taiwanese shipping com-pany Evergreen Line’s China–Europe shuttleservice (CES) called at the United Kingdom’sport of Felixstowe for the first time recently.The 8,452 teu «Ever Laden» thus launchedthe re-orientation of the CES service, whichonly called at ports in continental Europeuntil recently. Evergreen and its alliancepartners Cosco, K Line, Yang Ming andHanjin serve Felixstowe thrice a week.

www.evergreen-line.comwww.portoffelixstowe.co.uk

Delivery. The Japanese carrier NYK hastaken delivery of the «Aries Leader», thefirst pure post-panamax car carrier in Japan.The unit, built in Shin Kurushima Dockyard’sOnishi Shipyard in Japan’s Ehime prefecture,has a capacity to carry about 7,000 unitsand is equipped with the latest energy-saving technology, such as an air-lubricationsystem and a hybrid turbocharger. It is thefirst time that such equipment has beeninstalled on a car carrier. www.nyk.com

Reliable. According to the Danish analystSeaIntel, global shipping lines’ schedule reli-ability increased for the second consecutivemonth in April, with the performance im-proving by 1.5 percentage points to 73.6%.Maersk Line and Hamburg Süd remainedthe carriers with the best performance. Datafrom the platform Inttra shows that punctualbox delivery also rose for the second monthin succession in April, from 54.8% in Marchto 56.2%. www.seaintel.com

Alternative energy supply. The two energycompanies Swedegas and Vopak LNG are setto operate an LNG terminal in the Swedishport of Gothenburg. The facility will allowships, road vehicles and industry to switchto an environment-friendly energy supply.The centre, which is part of a EuropeanUnion TEN-T project, will be built in the portcompound. www.portofgothenburg.se

...and Lianyungang openingThe new LYG-PSA Container Terminal(LPCT), located in Lianyungang (China),started operations early in June. Whenfully developed, it will have a capacityof 2.8 million teu, 1,700 m of quay walls,a water depth of 16.5 m and super-post-panamax quay cranes with an outreachcovering 23 rows. The terminal is thusequipped to handle ULCVs.

An integrated intermodal network of-fering rail connections from the port of

Lianyungang to China’s central and west-ern regions will allow the LPCT, locatedin one of China’s most important regionsof economic activity, to make optimaluse of the new Eurasian landbridge tothe west as well as to Central Asia andEastern Europe.

The LYG-PSA box terminal representsPSA’s first major venture into the YangtzeDelta region, one of China’s key indus-trial and trading areas. av

the latter have no problem when travelling in Europe or engaging inunrestricted financial transactions. Ukrainian sailors and those fromCrimea are left high and dry, however. Their only hope is that the situ-ation at home returns to normal again as soon as possible.

As an interim solution, NWC has partly gone over to opening ac-counts for Ukrainian sailors in German banks, and making wage pay-ments there during a transitional period.» Feuerhake is clearly worried.«The earlier we can transfer money directly to the sailors again, thebetter. We know how urgently it is needed.» Antje Veregge

Disbursing pay in crisis areas

Wads of cashon boardThe situation in Crimea remains tense. Northwest Crewing

managing directors Manfred Müller and Jens Feuerhake

explain the effect of the situation on one aspect of ship-

ping companies’ and crewing agencies’ operations.

The latest developments in the Crimean Peninsula aswell as the general unrest in Ukraine have had an impacton international merchant shipping in several ways. Oneof the problems is that since the beginning of this year,shipping companies have been finding it difficult to paysailors from the region their wages.

Manfred Müller and Jens Feuerhake, managing direc-tors of Northwest Crewing (NWC), which is a subsidiaryof Germany’s Ems-Fehn Group, gave the ITJ an insightinto the trials and tribulations they face in their dailyoperations in the region. «Unfortunately, we cannot en-sure that the local banks credit our people’s accountsproperly, or that the sailors’ savings are readily availableto them when they need them,» Müller explains.

This situation in itself is not immediately a problemfor the sailors themselves, as they receive food and lodg-ing on board. They can also get a loan from the captain ifthey need cash. The situation is worse for their families,however. «For family members the situation is very dire.They are dependent on regular payments to meet theirdaily needs, such as rent, food and clothes.»

Unusual solutionsSince 2008, Northwest Crewing has been recruitingsailors from all over the world looking for work on Ger-man ships. The company’s main customers are Germanshipping lines active in coastal shipping. «Currently,approximately 40% of the sailors supplied by NWCcome from Ukraine and Crimea,» Feuerhake states. «Weare doing everything we can to help them. We have sev-eral business partners in the region through whom wesupport the affected families.»

Another possibility is to make salary payments incash. This is difficult in tramp shipping, however, wherethe port of call can change from one day to the next.The CEO of NWC explains that «in some countries ofthe EU, there are laws that prevent us from making theshort-term provision for the large amounts of cash onboard that we require to make direct cash payments.»

Making wage payments in cash should also only beused as a last resort, as it is quite unsafe in some regionsto move around with large sums of cash. NWC doeshave a large agency network through which it couldeasily recruit sailors from other countries, for examplefrom the Baltic states. As citizens of the European Union

The tense political situation in Ukraine and the Crimean Peninsula has also sloppedover onto international merchant marine operations.

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17International Transport Journal 23-26 2014 Ports & Shipping

SKILL & EFFICIENCY

ShipAgency:

CustomBroker:

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AddressP.zza G.Alessi, 2/2016128 Genova ItalyPhone+39.010.5361.1Fax+39.010.585811E-mailfinsea@finsea.itWebwww.finsea.it

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19International Transport Journal 23-26 2014 Aviation

«Managing an airline is a pretty toughproposition» according to a recent state-ment by someone who should know –Tony Tyler, Cathay Pacific’s CEO from2007 to 2011 and Iata’s director generaland CEO for the past three years. Theworld aviation body’s 70th annual gen-eral meeting was held in Doha (Qatar)in early June. 100 years after the firstscheduled commercial flight in historythis latest event gave cause for hope too.

«An industry of optimists»«We’re an industry of optimists,» Tylersaid, adding that «over a century of com-mercial aviation, the sector has donemuch to change the world with the glob-al connectivity that it provides.» Qatar,a fast-rising aviation power hosting themeeting in the Persian Gulf, is a greatexample of the economic and social im-portance of the aviation industry.

It is a fact that Middle Eastern airlinesare currently at the forefront of growthin the aviation industry. For the pastfew years improvements in the airfreightsegment have been weaker than in thepassenger sector, however. Overall, avia-tion provides 58 million jobs worldwide.More than one third of the USD 6.4 tril-

lion worth of goods transported interna-tionally is shipped by air. Iata estimatesthat 2013’s wares weighed approximately52 million t, the same as was registeredin 2010 and thus higher than in the twointermediate years.

Despite this self-evident recovery inthe industry, there are still some greyareas. One important issue, besides thedemands arising from security require-ments, is the overall traceability of air-craft. Iata and the UN’s InternationalCivil Aviation Organisation Icao reportedthat progress has been made in the field,particularly in the air space over Africaand the Indian Ocean, and announcedthe introduction of further measures.

Aviation industry celebrates anniversary in Doha, and seeks security

100th year is rosierThe Brazilian football association is not the only high-profile body celebrating its 100th

anniversary in 2014. International civil aviation is as old. After months, nay years of crisis,

the industry is now largely back in the black. There are still some uncertainties, however.

Narita airport authority’s Makoto Natsume, Qatar Airways’ Akbar Al Baker and Iata’s Tony Tyler(from the left) are optimistic for the future, as the aviation sector seems to be on the upswing again.

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In briefNew in Latin America. IAG Cargo hasadded two Latin American destinations– Montevideo and Santo Domingo – to the14 cities it already serves there. The capitalsof Uruguay and the Dominican Republic willbe linked four and five times a week respec-tively from 1 September, with Airbus A330sand A340s deployed from Madrid. Theunits offer between 6.5 and 12.7 t of freightcapacity. www.iagcargo.com

New in Africa. Etihad Cargo, the freightdivision of the UAE flag carrier EtihadAirways, inaugurated a new weekly freighterflight between Abu Dhabi and the Ugandancity of Entebbe on 26 May. The direct cargolink to the hub close to the capital Kampalawill be served by an Airbus A330-200F witha 64 t capacity. www.etihadcargo.com

New fleet strategy. Emirates Airline hascancelled an order placed seven years agofor 70 Airbus A350XWB aircraft. Deliverieshad been scheduled from 2019. The Europe-an manufacturer Airbus regretted the 10%reduction in A350s on order, but Emirates’fleet requirement still has space for Airbusunits, it said, as demonstrated by its recentorder for 50 A380s. www.skycargo.com

New client. The German freight handlerFraport Cargo Services (FCS), which cel-ebrated its tenth anniversary in June, haswon Miat Mongolian Airlines as a newcustomer. Miat has connected the nationalcapital Ulan Bator to Frankfurt twice aweek, deploying Boeing B767-300s with 12 tfreight capacities, since 19 June. In othernews, FCS extended an existing deal withTaiwan’s Eva Air by five years.

www.fraport-cargo.com

New hub. CEP corporation UPS inauguratedoperations in a new terminal in Taipei(Taiwan) at the end of May. It covers7,600 sqm and is 40% larger than the firm’sexisting facility there. It can handle 28 full-freighter flights a week. www.ups.com

New China–USA link. United Airlinesbecame the first US carrier to launch a dailynonstop service to Chengdu on 9 June, withBoeing B787s linking the southwesternChinese city to San Francisco three times aweek. One day later Washington DC becameAir China’s sixth US destination. The capitalis served four times a week from Beijing,with B777s deployed on the route.

www.airchinacargo.comwww.unitedcargo.com

Doha’s new airport finally started operationsrecently (see also ITJ 19-20 / 2014, page 17),and Qatar Airways planned to inaugurate itwith its first Airbus A380 landing there on17 June. But during the Doha Iata meetingthe airline had to announce that last-minuteproblems with the aircraft’s interiors hadmade the event impossible. The units maidenflight to London is now set for 1 July, withParis and New York to follow. ah

Renewed blow for Qatar Airways

20 Aviation International Transport Journal 23-26 2014

Overall, approximately the same amountof airfreight was handled at European air-ports in April this year as in April 2011.This is remarkable in as much as 2011 wasthe year which followed on from a surgein 2010, when double-digit improvementswere registered, with the market register-

ing another strong 14% rise that spring.Growth of 6% at European airports inMarch (see also ITJ 21-22/2014, page 27)was followed by a slightly less impressiveimprovement in April.

Cologne-Bonn airport was just ableto hold its own against Istanbul, as was

already the case last month. Liège andtable-topper Frankfurt were the two hubsin the list of the leading ten centres thathandled less cargo in April than in thelike-for-like period in 2013.

The hub in Hahn, which the industrysometimes calls «the other Frankfurt»,handled 10,605 t, or 18% less than inthe same month in the previous year. Itnevertheless hopes that the trend can bereversed with the support of the WorldCargo Airports Alliance. Frankfurt Hahnand Zhengzhou (China) airports recent-ly founded the association (see also ITJ21-22/2014, page 47). BST Logistics, aglobal service provider headquarteredin Hong Kong, also supports the body,and now the Russian hub of Novosibirskhas joined the union too. The coopera-tive alliance wants to improve the supplychain between Europe, Russia and China.Negotiations concerning an expansion toNorth America are being held.

Novosibirsk, a hub in Siberia, offersits customers a 12,000 sqm freight ter-minal, which handled 2,105 t (–11%) inApril and 26,694 t (+4.6%) in 2013. It islocated on the important route from Asiato Europe and also plays a substantialdomestic role. ah

European airfreight volumes in April

Airports seeking secure growth paths

Freight throughput at leading European airports in April 2014

Rank April 2013 Airport Country Airfreight in t ±%1 (1) Frankfurt DE 162,949 –1.22 (2) Paris (CDG) FR 159,000 +3.23 (3) Amsterdam NL 134,625 +9.14 (4) London (LHR) UK 120,194 +4.45 (5) Leipzig-Halle DE 74,736 +2.56 (6) Cologne-Bonn DE 61,659 +3.77 (8) Istanbul (IST) TR 61,081 +16.58 (7) Luxembourg LU 60,333 +13.39 (9) Liège BE 45,562 –1.410 (10) Milan (MXP) IT 38,555 +10.9

Freight throughput at leading Swiss airports in April 2014

1 (1) Zurich CH 24,189 +0.52 (2) Geneva CH 4,309 +27.43 (3) Basel CH 3,431 +3.9 So

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Chep and Jettainer withnew container customers

Zurich-based Chep Aerospace Solutionsrecently signed a five-year contract withHonolulu-based Hawaiian Airlines, forthe provision and management of the car-rier’s airfreight containers. The Swiss loadunit provider, which is part of Australia’sBrambles group, a supply-chain logisti-cian that operates in more than 50 coun-tries, has already been the 85-year-old USairline’s maintenance and repair partnersince 1999.

Jet Airways, the second-largest Indianairline, has mandated the German com-pany Jettainer with the management ofits unit load device logistics, also for fiveyears. The deal, which Jettainer’s mana-ging director Carsten Hernig described asa «gateway to Asia», covers 1,279 ULDs,of which 590 are lightweight containers.

Lufthansa Cargo getslighter and chooses ANA

Lufthansa Cargo will only use the light-weight version of LD3 containers fromnow on. Standard LD3 boxes are manu-factured with light composite materials,thus helping the airline to reduce fuelconsumption and emissions. LufthansaCargo handles around 500,000 contain-ers a year, and the 14 kg weight differ-ence vis-à-vis conventional boxes resultsin the saving of 7,000 t of uplifted weight.This in turn leads an annual 2,000 t fuel-consumption reduction, as well as to a7,000 t CO2-emissions cut a year.

Inothernews,theGermanfull-freighteroperator seems to have found a strategicpartner, after many years of searching.A collaboration agreement with Japan’sAll Nippon Airways (ANA) is due to beofficialised in summer.

East Africans and Thaisto serve Paris, Xiamen

Ethiopian Airlines and Kenya Airwaysboth commenced a Boeing B787 serviceto the French capital Paris early in June.Ethiopian Airlines, which became thefirst African operator of the Dreamlinerin 2012, deploys it between Addis Abeba,Paris and Brussels six times a week, whilstKenya Airways, which has had the air-craft in its fleet since April, offers weeklyflights to the city on the river Seine fromKenya’s capital Nairobi.

Thai Airways, in the meantime, whichis set to start operations with the first of sixB787s on order in July, recently presentedits freshly-painted firstling (see also ITJDaily of 6 June). Thai’s freight divisionhas also established a weekly B747-400Flink from Bangkok to Frankfurt via Delhiand now also via Xiamen (China).

The airport association ACI Europe described the growth in airfreight volumes in April as

«modest but encouraging». Cargo improved by 3% in comparison with April 2013. One

of the centres that slipped is still working on a new partnership for growth.

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Otto Kaufmann,Freight Forwarder,Munich, GermanyMunich to Abu Dhabi daily

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So whether it’s auto-parts or computers,visitwww.etihadcargo.com for more information,or contact your local Etihad Cargo representativeand we’ll take it from there.

THEWORLD IS OUR BUSINESS

23International Transport Journal 23-26 2014 Forwarding & Logistics

Stef, a French refrigerated transport

specialist, and the German logistics

service provider Röhlig, both published

their annual figures recently.

The owner-led German logistics companyRöhlig, based in Bremen, has presentedits results for fiscal 2013. «In the light ofthe prevailing conditions we’re satisfiedwith the fiscal year,» said Hans-LudgerKörner, Röhlig’s chief financial officer.2013 was characterised by sluggish growthin the global economy, as well as in inter-national trade, coupled with pronouncedcurrency fluctuations.

Röhlig’s gross earnings of EUR 111 mil-lion in 2013 matched the previous year’sfigure. Adjusted for currency fluctua-tions they increased by EUR 3.8 million,however. Similar currency effects werealso evident in sales, which reached atotal of EUR 547 million in 2013. Afteradjustment for one-off effects (the pur-chase and sale of joint venture shares,

as well as the negative influence of cur-rency effects) the company’s ebit came toEUR 16.8 million, an 18% improvementover the previous year.

The French Stef group also struggledwith a challenging market environment.Its specialisation and its internationalapproach produced satisfactory results,however, according to the annual reportpublished in June. Thanks to takeovers,including a successful bid for the compa-

ny Ebrex (with revenues of EUR 140 mil-lion in 2012) on 1 October 2013, and apartnership with a Swiss dairy productsdistributor, Stef is now in a much strongerposition throughout Europe. Group reve-nues increased by 5.2% to EUR 2.633 bil-lion, while profits climbed by 8.4% toEUR 60.2 million. For 2014 the groupprojects healthy developments in all ofits markets, which are primarily locatedin southern Europe. Andreas Haug

Röhlig and Stef annual results

Satisfied with a challenging year

The French refrigerated logistics specialist Stef is growing by entering new European markets.

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Blue Water Shippingin the black

The Danish logistics firm Blue WaterShipping generated a turnover of aroundEUR 602 million last year, or 8.4% morethan in 2012. Its earnings before taxcame to EUR 5 million, significantly lessthan the record EUR 11 million in 2012.«It’s not a satisfying result, as it’s belowour target,» said BWS managing direc-tor Kim Hedegaard Sørensen. He addedthat it was the only parameter for 2013which was not satisfying, however. Hisexpectations for 2014 are to strengthenthe result through better earnings and toconsolidate BWS’s position. The devel-opment of BWS’s organisation over thelast four years is contributing to success.BWS added ten new offices in 2013 andinvested in new buildings at its headquar-ters in the port of Esbjerg.

Blue Water Shipping is also set to takeover the daily operations of the privateport of Bandholm on the island of Lol-land (Denmark) on 1 January 2015.

Arvato medicallogistics takeover

Arvato, an international technology ser-vice provider based in Gütersloh (Germa-ny), has taken over Stok UK, a logisticsservice specialist that provides high-qual-ity products to hospitals in the UnitedKingdom and Ireland. The companiesagreed not to disclose the purchase price.As a partner of medical technology com-panies, Stok optimises inventories andproduct availability in clinics for a rangeof manufacturers, easing the burden onhealthcare personnel and manufacturers.

Pilot projects in Germany and theNetherlands are already being imple-mented in collaboration with customers.From 1 July Stok will be integrated intothe healthcare business of the Bertels-mann subsidiary Arvato. Paul Wilkinson,who founded Stok ten years ago, will re-main at the head of the firm. It now plansto expand its services to other Europeancountries, and is also expected to benefitfrom Arvato’s network in the future.

Wtransnet receivesprestigious award

The Spanish company Wtransnet, a keyprovider of freight exchange services andonline applications in 23 European andLatin American countries, won an awardfor the best Spanish logistics project re-cently. Wtransnet’s innovative solutionsto increase road haulage business betweenprofessionals in a secure IT environmentwas recognised at the opening ceremonyof the 16th edition of the logistics andmaterial handling exhibition in Barce-lona on 3 June.

Pioneer Wtransnet’s was founded 17years ago and now has 9,500 customers,making it a leading southern Europeanfreight exchange. It is growing in other re-gions too, however. Between January andApril offers from the northern Europeancountries of Denmark, Finland and Swe-den increased by 57% vis-à-vis the sameperiod in the previous year. Portugal putin the second-best performance (+43%)and business in Italy improved by 41%.

24 Forwarding & Logistics International Transport Journal 23-26 2014

port from Ukraine to western Europe has largely beengoing on without hindrance, and volumes are in theforecast range, ÖBB spokeswoman Sonja Horner toldthe ITJ. «There is no need at present to put alternativemeasures in place, but if and when there are delays we’llrespond as quickly as possible.» The Austrian companyalso owns the Hungarian rail freight operator Rail CargoHungaria, and is thus particularly sensitive to develop-ments in Ukraine, as the bulk of transport to westernEurope from Russia rolls through Ukraine and Hungary.

Equanimity in the face of risksThere is a risk of traffic outage, but it is difficult to assess;plans for the worst case have been made however, saidHorner. The company would divert consignments thatwere intended for transport by rail via the Polish net-work, or by ship across the Black Sea. But such optionswere medium-term solutions. To change routes would re-quire advance planning. Austrian intermediaries of rawmaterials, such as iron ore, would find alternate marketsin South Africa, Canada and Australia, and the goodscould be delivered by sea with transhipment in Koper.

The Austrian shipping company Cargopartner, whichhad its own offices in Ukraine for five years, closed themin 2013, because sales fell below expectations. Sincethen, consignments to and from Ukraine are transportedwith the help of local partners. The forwarder GebrüderWeiss, in contrast, has not experienced a noticeable risein tension that would affect its business with Ukraine.GW opened an office in Mukachevo, western Ukraine,in 2005, and directs all its domestic overland activitiesfrom there. «We’ve taken certain general measures thatare in any case standard, such as providing computersand mobile phones that may become necessary if work-ing from home is called for, and for the economic se-curity of employees,» GW’s country manager ManfredÜberfellner told the ITJ. Customs clearance operations

Ukraine between business-as-usual and a worst-case scenario

Carry on – and yet wait and see

The mood is still tense. In an improvised church in the middle ofthe Kiev Maidan, surviving dependents remember more than 100brothers and sisters who died in the bloody February nights.

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osef

Mül

ler

The logistics industry is currently facing major challenges, due to the

political tension in Ukraine. ITJ correspondent Josef Müller headed for

Kiev, and came back with some fascinating impressions.

Anyone visiting the Maidan in Kiev can still see and sense what hap-pened on the central square of the Ukrainian capital between Novem-ber 2013 and those fateful days in February this year. There is still asmell of scorched earth in the air, and opposition supporters have setup camp across the whole of the square. Their tents are everywhere, andthe area is blocked off with high barriers made of tires, wood and pavingstones. Away from the Maidan, in its Stalinist-style buildings, daily lifein the capital city however takes its course, the political and economiccrisis in the country neither particularly apparent nor perceptible.

For the transport and logistics industry the political and economicsituation in the country remains rather uncertain. This is especiallydue to the uncertainty caused by the referendum held in some of theeastern regions of the country on 11 May. The results are being rejectedby both the EU and the USA, who both consider the poll illegitimate.Russia, on the other hand, recognises the results and considers themofficial and binding.

The free flow of goods continues«On the whole, business is normal in the country, despite the tensesituation,» the Austrian foreign trade delegate Hermann Ortner told theITJ in Kiev. In any case, even before the present tension, the businessclimate in Ukraine was not always easy for foreign investors. It was notuncommon for companies to find themselves confronting unexpectedproblems, such as in administrative matters or with regard to customsduties and taxes. Ortner added that, given the present tension in thefinancial sector and the massive depreciation of the exchange value ofthe Ukrainian currency, the hryvnia, businessmen should be preparedfor more frequent defaults, or should be prepared for delayed payments.Ortner advises foreign firms to take safeguarding measures. The presi-dential elections on 25 May did not provide much more clarity.

The Rail Cargo Group, the freight division of Austrian state railway,has been observing developments in Ukraine very closely. Rail trans-

Streck and Hellmannthe winners this yearThe international groupage service asso-ciation System Alliance Europe honouredits members with performance awards for2013 at its shareholder assembly in Milanrecently. Hellmann Worldwide Logistics(Germany) received the 2013 partner ofthe year award for the fourth time insuccession. Wim Bosman’s former MitryCompans (France) branch office, nowmanaged by Mainfreight, came first inthe improvement of the year category.Honold International, from Neu-Ulm(Germany), and Streck Transport, fromMöhlin (Switzerland), took the honoursin the quality category, with the latteralso selected as innovator of the year.

The quality awards handed out by theexpress road haulage network Systemplusalso saw Streck win in the quality/com-plete system category for the fifth year ina row. The firm also ended up in the topslot for its consistency when adhering toschedules, as laid out by the Systemplusservice called premiumplus 12. ah

at the Slovak and Hungarian border forgoods entering Ukraine remain unaffect-ed at the moment.

Corruption a new themePanalpina is another company that hasnot faced any problems. 30 staff workingin Kiev and at Borispol airport take careof the company’s Ukrainian activities,which focus on air and sea freight as wellas the oil and gas industry. Some new in-frastructure projects came up for the Eu-ropean Football Championship in 2012,but that was not enough, state chairmanLevan Merkviladze told the ITJ. He saidthat the country desperately needed tobring down corruption, an intolerablesubject that affects every aspect of life.«Corruption is a major issue in Ukraine.We have a zero-tolerance policy on cor-ruption.» Merkviladze is of the opinionthat generally, the administration is func-tioning more or less normally. «It makesus hopeful for the future.»

The EU and the USA are opening theirmarkets to Ukraine. Since June Ukrainehas been allowed to export most of itsgoods to the EU more or less duty free.

The measures will remain in place until1 November, and Ukrainian exportersexpect to save around EUR 500 milliona year in customs duties and tariffs. TheEU aid package that includes this andother measures is worth EUR 11 billion.With the EU’s unilateral tariff waiver alarge part of the association agreementthat was not signed by then-presidentViktor Yanukovych in November 2013 isnow in place.

It is worth noting that the tariffwaiver applies to the whole of Ukraine.Should Russia export products to Europethrough Crimea, it would then also beable to make use of the waiver.

A Ukrainian railways overland train destined forAstana (Kazakhstan).

25International Transport Journal 23-26 2014 Forwarding & Logistics

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26 Forwarding & Logistics / Hazardous Goods International Transport Journal 23-26 2014

Transporting class 1 hazardous goods involves the knowledge of, and compliance with, strict safety regulations,adherence to legal provisions, as well as trained drivers.Therefore the enterprise Deutsche TransportCompagnie Erich Bogdan (DTC), from Nuremberg, decided tofocus on this field of activity through a specialised subsidiary, DTC ProjektLogistik. The latter is now in chargeof all hazardous goods deliveries for DTC.

The company has more than 20 years of expertisein the areas of planning, organising and executing thetransport of defence equipment and explosive materials.The firm has all the qualifications, permits and approvals needed to carry out such work, such as the permissionrequired according to §7 of the German explosives act.Its 40 drivers are specially trained and have the appropriate qualifications to handle hazardous goods.

Thomas Heger, head of sales at DTC ProjektLogistik,pointed out one simple fact regarding the benefits ofspecialisation. «Only a few forwarders have the equipment to transport class 1 hazardous goods.» The mainfocus of the company is on the transport of defenceequipment. DTC ProjektLogistik also carries industrialexplosives for use in mining. In addition to national andinternational road transport, it offers complete logisticssolutions for air and sea as well as rail transport. «Theseoperations are carried out with selected partners andspecialised equipment,» Heger said, citing the exampleof maritime transport that is carried out with ships provided by specialised forwarders that have capacities tocarry only a few hundred 20 ft containers at a time.

For transport by road DTC ProjektLogistik ownsseveral 40 t articulated road trains with interchangeablebodies. The vehicles meet the requirements for EX/IIIclass vehicles as specified in chapters 9.2 and 9.3 of theEuropean agreement concerning the international carriage of dangerous goods by road. Their interchangeableflatbeds can be fully opened not only from behind, butalso from both sides. «This arrangement allows us to loadlarge packages quickly and safely,» Heger closed. ah

Forwarder uses subsidiary for specialist services

Outsourcing risksThere are many conditions that have to be met to

transport class 1 hazardous freight. One German

forwarder has put a specialised subsidiary in charge.

Thomas Heger says that his firm «has the equipment required.»

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In briefSensitive liquids. Liquid Concept, a logistics enterprise that specialises intransporting liquids in intermediate bulk containers (IBCs), has taken over alarge proportion of the plant logistics for a German cocoa produce processor inBrandenburg. 20 heatable IBCs for the transportation of smaller quantities areflexibly deployed, as are 25 tank containers to carry raw materials and finishedgoods, as well as around 100 large tankers for the delivery of raw materials tothe plant as well as hauling finished goods to customers. Liquid Concept wasfounded in Hamburg in 2008. www.liquid-concept.eu

Extended field of deployment. Wabco, a Belgian supplier of technologiesand control systems for the safety and efficiency of commercial vehicles, hasexpanded its safety system called tailguard to include waste disposal vehiclesfor the first time. The German municipal waste removal company AHA Hannoverhas tested nine units equipped with technology that supports the driver whilsthe is reversing. It looks behind the vehicle to register moving and stationaryobjects in the rear-view mirror’s blind spot. www.wabco-auto.com

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Our expertise isn’t just basedon desk research

water-rich tributary, the Sava, into other Southeastern European coun-tries, and even as far as the Black Sea.

In fact, on 21 May a flushed-out land mine exploded in the northernBosnian district of Brcko. Fortunately, no one was hurt. The districtcapital is also a location where specialists from the regional mine actioncentres of the former warring parties Bosnia and Herzegovina, Croatiaand Serbia regularly meet to discuss how to proceed. A team from theUSA and Europe also supports the explosive ordinance disposal teamwith specialists.

Still a massive task aheadOne priority is to pump water out of the regions affected, so that minedareas can once again be marked. Emergency aid has also been released.Germany said it will provide EUR 7 million in total, EUR 1 million ofwhich is earmarked for the clearance of mines and explosive remnantsof the civil war. Truck convoys with desperately-needed supplies havealso been put together (see also ITJ Daily of 4 June).

Switzerland also sent several transport helicopters to the westernBalkans, some detached from Kosovo, where the military equipmentwas deployed as part of the involvement of the Nato-led Kosovo Force(Kfor) in the country’s parliamentary elections, which took place on8 June. The Bosnia-Herzegovinian government will also need more sup-port. Its original goal had been to remove all mines from the countryby 2019. Now, according to information from Sarajevo, this will takesignificantly longer – another 20 to 30 years! Andreas Haug

Hazardous material disposal in the Balkans

Floods washup land minesBosnia and Herzegovina is one of the countries with most

land mines still concealed in the ground. The May floods

there flushed the legacy of the Balkan war back to the

surface and to the top of the national agenda.

The most devastating floods in the Balkan region sincerecords have been kept saw more than 60 people deadin Bosnia and Herzegovina and in Serbia. The dam-age to property has been estimated to come to aroundEUR 2 billion. Now that the clean-up is in full swing,caution is needed, however, as the estimated 120,000 landmines still spread over an area of more than 1,200 sqkmof Bosnia and Herzegovina from the Yugoslavian civilwar (1992–1995) present a major risk. This means that2.3% of the country is contaminated with mines.

Up until now, organisations such as the InternationalCampaign to Ban Land Mines (ICBL) and the Bosnia-Herzegovina Mine Action Centre (Bhmac) had a prettygood idea of the location of the hidden dangers, butnow the natural disaster has completely shaken up thisknowledge. Areas marked as dangerous were flooded,warning signs swept away and the mines themselves pos-sibly washed far away into previously checked regionsthat had been declared mine-free.

Experts based in the ca