28


Issue 3 2012


Medicine men keep Express Group healthy


Pharmaceuticals are the key to a healthy Maltese freight industry. Last year was a tough one, and while the Express Group ended it with


increased business, the


market has become increasingly cut-throat, says sales and business development manager David Fleri Soler. But the big bright spot was pharmaceuticals, which kept on growing, “especially exports out of Malta,” he says. The Express Group was one of


the pioneers in the pharma sector in Malta, and continues to increase its volume in what has become a heavily regulated industry. “We have technical experts; we even employ a qualified pharmacist, to deal with licensing and release of goods” explains Mr Fleri Soler. Tighter regulations have increasingly made pharma an area for specialist carriers; the days when a general haulier could fill up space with a few boxes of medicines are just about over, thanks to the increasingly stringent regulations on temperature, tracking and rules preventing pharmaceuticals being mixed with other cargo. New guidelines are expected to come into force that will further tighten up transport operation. And, in April, the Express Group


finished a second extension to its warehouse, adding a further 960 pallet positions to bring the total to 1,600, all medically-approved and fitted out with state of the art racking. All the inside walls have been sprayed with a special compound to make them easier to clean. “The new facility is already three-quarters full,” enthuses Mr Fleri Soler.


Express Group started a trailer


service for pharmaceuticals – tracked by GPRS - to Libya in January, just before the revolution broke out. That was restarted in April, and Express is also operating separate trailer services into Libya for retailers, who have started to open up shop again. “That will be expanded further, though things are unsettled in Libya. It’s a matter of knowing the market, and knowing who you are dealing with.” With the whole of North


Africa still quite disrupted, many businesses prefer to keep the bulk of their stocks elsewhere and where better a place to hold them than Malta, with its frequent ferry and lo lo links? Grimaldi and Messina maintain ro ro services while


container services are


available from Grimaldi, Tarros Line, CMA CGM and Brointermed. The Maltese, more than anyone


else, know about dealing with the Libyans. In good times and in bad, they have of necessity had dealings with all the different regimes that have ruled the country. During the crisis, Express Group sent a lot of humanitarian aid to Libya, putting it on fishing boats in some cases. You also need to be fleet-footed to avoid the operational problems that affects most North African ports from time to time, and which have certainly not diminished with the ‘Arab Spring’. In Libya, different ports are under the control of various factions, which can make them especially unpredictable. The Group continues to invest in


its regular trailer groupage services, which link Malta to around 20 European countries. It is continuing


///MALTA


Maritime delegation visits Libya


Malta Enterprise sent a delegation from the ports


and maritime


sector to Libya in April to explore the business and investment opportunities following the revolution. Led by Ministers Tonio Fenech and Jason Azzopardi, the visit took place between 16 and 19 April, and was the first since the uprising. It included, among others,


companies involved in port management and services, ship repair, maritime engineering and infrastructure as well training and consultancy. The delegation visited the


to invest in new trucks and trailers including new Euro 4 & 5 compliant tractor units that are essential if heavy German truck tolls are to be avoided. Ferry links to mainland Europe


are now provided only by Grimaldi, following the cessation of the GNV operation. So far, the situation hasn’t adversely affected service standards, availability of capacity or rates, says Mr Fleri Soler, although there have been heſty increases in the BAFs (fuel surcharges) levied by the ferry operators – as well as the massive increase in the cost of diesel for the Group’s own trucks. As Express’s


tractor units – as


opposed to its trailers - spend most of their time on mainland Europe, only occasionally crossing over into Malta, the Italian diesel price is key and currently it is hovering at a heſty €1.60 per litre. Italy - in particular Genoa, but also other Italian ports such as Cittavecchia near Rome - is a handy hub for Express, as there are ferry services


not only to Malta but also European destinations such as Spain. The Express Group is a freight


forwarder as well as a trailer operator and it has regular LCL container services from the likes of India, China and Turkey. “Our philosophy has been to treat Malta as a gateway to Europe, and also to North Africa,” explains Mr Fleri Soler. “There is a lot you can do with your supply chain by using Malta as a hub and increasingly, companies are beginning to see the benefits of linking their supply chain activities with their tax policies.” Corporation tax in Malta is low for foreign companies and there can also be cash-flow advantages in the deferment of VAT payments for products imported into the EU via Malta. “Moreover, we can turn around a container coming into the Freeport and have the cargo on a trailer heading for any one of 20 European destinations within 24 hours.” And there is still plenty of trailer capacity available out of Malta,


although the burgeoning


pharmaceutical exports have started to fill up some of the empty space in what was traditionally a very import-orientated market. At the time of writing, disruption


to shipping services between Malta and North Europe and to a lesser extent between Asia and Malta were making life difficult, though the problems are not limited to routes serving Malta. When normal service is finally resumed, Malta should regain its rightful place as a lynch-pin in the global supply chain.


ports of Tripoli, Homs, Zliten and Misurata to view the operating environment, meet local port authorities and discuss issues of concern. A visit to the port of Benghazi was also scheduled but had to be called off due to bad weather. Malta Enterprise itself has


already visited Libya and, in tandem with its commercial office in Tripoli, has done its utmost to establish the formal structures necessary to give Maltese enterprises a good launch pad for doing business, whilst also helping Libyan enterprises looking to trade with and invest in Malta. Malta Enterprise executive


chairman Alan Camilleri said: “The work we have done in the background in the last few months has been crucial in ensuring that any initiative we undertake can


have a successful outcome, given that practically all institutions and business support organisations in Libya have undergone radical reform. The partnership agreement Malta Enterprise has signed with the General Board for Ownership and Investment within the Libyan Ministry for Economy paves the way for our initiatives. “Now that the situation has


somewhat stabilised, we can look with optimism at organising the first of a series of sectoral delegations to Libya, which on this occasion focuses on the maritime industry. This delegation is particularly opportune for Maltese companies with established links to international co-investors, collaborators and principals. The information we have is that, although there is still a degree of uncertainty and it will be a while before opportunities become clearer, it is time for Maltese businesses to start exploring such opportunities. “We


had an overwhelming


response to our call to participate, with more than 450 companies approaching Malta Enterprise.” Malta Enterprise and Transport


Malta are also organising two separate


seminars for Libyan


officials involved in regulating these sectors with the aim of providing training and assistance based on Malta’s expertise in these fields. A second visit is planned for the coming months.


Maltese expertise is set to give Libyan ports a liſt


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44