10


ROAD UPDATE


KN set to grab third spot in Europe with RH purchase


Kuehne+Nagel is pushing to become the number three road operator in Europe by 2014 with the purchase of UK haulier RH Freight.


RH Freight, headquartered in Nottingham, is described by its prospective purchaser as “the market leader for groupage freight between continental Europe and the UK. The company employs 630 staff across 17 locations in the UK and at two sites in Finland and has main hubs in Nottingham and South- East London. It handles 425,000 shipments per year and operates to 32 European destinations daily. Besides its core activities, RH Freight is also active in sea and airfreight as well as contract logistics, with 30,000 sq m of handling space.


“RH Freight is much more advanced


in European road


freight than we are,” admits the president of K+N’s north west Europe division, Tim Scharwath. “By buying RH Freight, we jump from number nine to number two in the UK road operators list.”


Scharwath continues: “Although


the purchase is


subject to anti-competition review in Germany and Austria, we don’t see any problems with that. We are not yet sure how we will merge the two, but RH Freight has a presence in markets where we are weak and depots in places like Poole where we are not currently present.” RH Group’s managing director Ian Baxter, added: “To be even more successful in the future, we need to offer customers a truly global one-stop solution. Combining strengths and international capabilities with K+N will


be of great


advantage to our customers and generate a win-win situation for both companies and their employees.”


Meanwhile, K+N is developing new road services in Europe. Protectline was launched early this year to handle high value goods, while Pharmaline will be launched in the second quarter of the year. Another specialist product for moving equipment for fairs, exhibitions and events is also being expanded.


The company is basing much of its expansion on niche markets


across all transport


modes. Hotel logistics has grown substantially in the last year to deliver all goods needed for the opening and running of hotels – for example, fixtures and fittings and food and housekeeping items. Reefer business and pharmaceutical products are also being expanded and specialist services for forest products and wines and spirits have been developed. “We want to build our airfreight business,” adds Scharwath. “We are beginning to move fish by air, as well as spare parts for ships and the aerospace industry.” Seafreight is


also being


expanded, with the aim of doubling ocean-going volumes by 2014. “From the UK, we want to target Latin America and the Middle East, which are not our strongest markets,” says Daryl Ridgway, seafreight director for north west Europe.


K+N already experienced a 16% growth in seafreight volumes, compared to 10 or 12% market growth, and a 25% increase in airfreight in 2010, compared to an 18-20% market growth. Road and rail grew by 16%. Contract


logistics did not fare as well, but the company is developing two new services that should boost this part of the business.


It is developing an e-fulfilment


product to handle warehousing and pick and pack for retailers offering home delivery and reverse logistics to handle returns. “The level of returns is high,” points out Glen Lindfield, contract logistics director for north west Europe. “Retailers can see as much as 30% of goods returned - a lot of them electronics, including a huge number of kettles. We’ve set up a method of screening returns of electronic goods and working with partners to re-sell these online at a discount.”


A parts delivery service for both field engineers and automotive spares is also being developed, using a new 30,000 sq m warehouse in the North west. Phase I of the warehouse is already open, but it will not be fully operational until April. The company is also looking at entering emerging markets. “But,” Scharwath comments, “there are risks in entering these markets due to currency exchange issues and politics.”


Dentressangle completes TDG buy


Norbert Dentressangle has finalised its acquisition of UK logistics group TDG with the 100% purchase of holding group Laxey Logistics for €241 million acquisition. It follows the approval of the deal by European competition authorities on 21 March. TDG


will be consolidated


in Norbert Dentressangle’s financial April.


statements from 1


The transaction valued Laxey Logistics’ total share capital at £212 million, or €241 million. Norbert Dentressangle also assumed an estimated £30 million of TDG’s debt, as a part of the deal. The acquisition


was paid entirely in cash from Norbert Dentressangle’s reserves and available credit lines. The acquisition boosts Norbert Dentressangle’s 2010 revenue to €3.6 billion, 57% of it from outside France, and brings its headcount to 33,000 employees. TDG is meanwhile offering a service for dangerous goods


containers moving under ADR regulations


at its Thurrock


depot, for 20ft and 40 ft iso- tankers as well as on-site storage. TDG Thurrock already operates road tankers but found there was a gap in the market for a company capable of arranging container services with a robust ADR specialism, particularly in the Thames area, said site manager, Chris Smith. “Typically, container operators are moving and


storing non hazardous


products. However, we have a track record of being ‘a safe pair of hands’ when it comes to handling chemicals and fuel. Our drivers are ADR trained, and our tractor units meet stringent ADR safety standards, which is not commonplace for container operators.”


TDG has spotted a gap in the market for dangerous goods container movements


TDG can also offer an integrated solution including import and export ocean freight management and customs brokerage through its international services teams. TDG Thurrock specialises in moving product to and from Tilbury and the Thames ports and it is increasingly working with consignments from Felixstowe.


ISSUE 2 2011


ROAD NEWS ROUND-UP


Road operator Europa is moving its Birmingham Operations to a distribution and logistics centre at ProLogis Park, Midpoint close to the M6 and M42 motorways in August 2011. There will be a 40 cross dock loading area and space to load a further five trailers under a canopy for ‘out of scope’ consignments.


Edward Stobart, the man behind the growth of the Carlisle-based Eddie Stobart trucking and distribution company died in hospital in Coventry from a heart condition on 30 March. He was at the helm of the UK’s best-known haulier for for 30 years after taking over the business from his father Eddie. He then sold the company to his brother William and business partner Andrew Tinkler in 2004. It has since diversified into other areas including rail and airport operation.


Kuehne + Nagel has launched a door-to-door road liquid bulk service from the CIS and other countries to Russia. Tank-containers are fitted with a special reefer set which ensures constant temperature between -3 and -5 °C in the tank and during filling and discharge.


DHL Freight has opened a new logistics centre in Pratteln, Switzerland. It acts as a gateway for its European less-than-truckload (LTL) Euroconnect service and as the national DHL Freight headquarters. The12,200 sq m facility, originally developed by DHL’s long-time Swiss partner Paul Leimgruber includes 62 docking positions for trucks, an 8,000sq m warehouse, storage for dangerous goods and an open customs warehouse.


Teeside-based container and port transport firm Bulmers Transport has gone into administration. Cashflow problems stemming from a a bad debt were blamed for the demise of the firm. Bulmers Transport was formed two years ago after a management buyout of the former Bulmers Logistics. Harrisons Business Recovery and Insolvency have been appointed as administrators.


The International Road Transport Union (IRU) has raised concerns over the health of truck drivers subjected to frequent security X-ray scans. IRU president, Janusz Lacny and secretary general Martin Marmy highlighted the issue at the “Security for a Global World - A European response” conference organised by the New Policy Forum and the Foreign Affairs Association in Munich on 23 March. They said that many vehicle inspections did not currently respect radiation emission norms nor were protection measures in place.


The International Transport Workers’ Federation has launched an initiative at Tulkarem City to improve the lives of truck and other drivers at the border crossing between Palestine and Israel, notorious for long delays. Drivers now have access to refreshments, toilet facilities, shade and a union meeting space.


Air Canada Cargo has awarded a two-year contract to Wallenborn Group to provide international road feeder services covering 40 airports in 14 countries in Europe and Scandinavia – including the European gateways at London Heathrow and Frankfurt. Wallenborn Group president Frantz Wallenborn, said the deal made his company the largest provider of distribution services to Air Canada in Europe. “We were selected based on our ability to provide a strong, competitive network that enables the airline to optimise its use of hubs to minimise costs and transfer times as well as meeting all applicable security, regulatory, safety and environmental standards.” Under the agreement, Wallenborn is providing a key account manager as a single point of contact for Air Canada to meet its commitment to provide trucks for despatch at six hours notice and fast transfers.


Third party logistics specialist Howard Tenens has added a West London division at a new depot at West Drayton near Heathrow. The site mainly offers dedicated logistics solutions to the vending and fishcare sectors. Drinks, vending machines and Fishcare products belonging to a major UK manufacturer are stored and distribution and installation are managed throughout the UK mainland. The site boasts fully integrated warehouse and transport management systems to provide complete visibility of the stock and delivery fleet. Ben Morris, operations managing director, said “Heathrow is a prime geographical location for us and their vending expertise will expand our overall knowledge, further enhancing the strategic growth of our business.”


P&O Ferrymasters has extended its relationship with water systems maker Brita group with a five-nation road transport contract. The new contract, which will generate around €1 million turnover and will consist 99% of full trailer loads, means that P&O Ferrymasters is poised to win back much of the business it lost in 2009 after more than a decade as BRITA’s exclusive carrier in Europe. Traffic from Germany to Italy and France has been retained after being regained in a review last year. The company’s Cologne office will continue to handle all shipments to Italy as well as a part-share of volumes to France.


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