IRELAND\\\


Issue 7 2014 - Freight Business Journal Potatoes to Portarlington


Ireland has exported its way out of recession - but the island is importing a wide range of goods again too – even potatoes. And the freight industry has shared in the new prosperity – just don’t mention the postcodes.


No gold, except the White Stuff


Kuehne + Nagel is budgeting for growth of more than 5% in Ireland this year. “The economy is definitely improving, but things are still tight,” says David Sadlier, sales and solutions director at Kuehne + Nagel Ireland. “Companies have streamlined as far as possible, but still feel they have to offer more for less to stay competitive, putting pressure on margins.” K+N has made initial moves


into oil and gas logistics as Ireland begins


to develop an offshore


industry. “We don’t have coal or gold here, so while we wait for


the O&G sector to develop, dairy produce is our biggest industry ‘resource’. Extra production capacity is on the way as EU milk quotas are abolished,” Sadlier says. The Irish Dairy Board (IDB),


which exports butter and cheeses to more than 90 countries under brand names such as Kerrygold and Pilgrim’s Choice, chose K+N earlier this year as a global logistics provider. “IDB is an innovative


company which is expanding its product range. All the big dairy manufacturers here are


diversifying from the same basic raw materials,” Sadlier says. “It already has a global presence but was using multiple service providers and has consolidated its deepsea business help it expand into new markets.” Key to IDB was K+N’s scale,


expandability and quality of information, he adds. “As logistics partner you need to get the product out on time and communicate with the client.” One challenge will be Ireland’s


equipment shortage as it continues its export push but imports lag


behind. IDB ships a mix of ambient and chilled goods, and Sadlier foresees a worsening reefer imbalance in the southern region especially. One commodity that’s not in


short supply is warehousing, where there is continuing and possibly permanent overcapacity. “The distribution model has changed away from local inventory and I don’t know if demand will ever return,” Sadlier says. Even local suppliers need to


hold less physical stock within Ireland these days, he points out.


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