16 in


Issue 2 2017 - FBJ


///IRELAND First Ireland, tomorrow the world


There’s a lot more to the Irish market than meets the eye, says Ray Hennessy, chief executive UK and Ireland for global forwarding giant, DB Schenker. “A lot of multinational companies have their headquarters


Ireland and


there are a tremendous number of supply chain decision-makers based there.” These executives are looking


for a forwarding and logistics company that can deliver a global solution in all parts of the world, and for many of these firms, the entry point to the worldwide DB Schenker system has been through Ireland. DB


Schenker in Ireland


has recruited people from many disciplines, as well as freight forwarding, Hennessy continues: “For example, engineers, people with a background in quality control, IT experts and so on.” The company also has a very


active graduate recruitment programme, initially started in 2010 in conjunction with the University of Limerick. The freight and logistics industry might not have the immediate appeal to graduates of some of the best known multinationals but it is an industry that gives immediate opportunities to those who show initiative, as well as a multitude of different career choices and the opportunity to work in different geographies. Suffice to say that DB


Schenker in Ireland has grown rapidly since 2008. It currently employs 280 people there but that figure is set to increase again very shortly. It has bases in Shannon, Cork and four in Dublin and continues to open new ones all the time. “We opened a €9m, 90,000sq


ſt contract logistics facility in Cork in 2016, and that’s already nearly full, with a mixture of


pharmacuetical, medical device and consumer goods” Hennessy explains. “It was the first high- spec warehouse to be built since the recession in 2007/08 and there’s even discussion about a phase II.” In Dublin, DB Schenker has


gone from a single 30,000sq ſt building four years ago to a current footprint of 150,000sq ſt and it is about to finance a deal for another 100,000sq ſt, supporting strong growth in electronics and consumer export products. “Yes, we’re doing well,” says


Hennessy. “It’s partly due to the improving economy but also a conscious strategy of upselling and selling value-added services.” Hennessy initially started


out as head of DB Schenker in Ireland alone but has since taken on the role for the UK as well, following a reorganisation. One of his ambitions in fact is to


replicate the Irish arm’s growth in the UK, where he freely admits that DB Schenker doesn’t currently fulfil its potential. DB Schenker acquired UK-


based road operator Redhead in January 2016, which now runs the forwarder’s land- based business in the UK. DB Schenker’s European land operations are vast, handling 105m shipments last year and is one of the few truly European- wide land groupage networks, says Hennessy. Redhead also has a strong UK/


Ireland business and likewise will


greatly Schenker’s presence


strengthen in


DB Irish


land transport. Redhead also has a base in


Mallusk in Northern Ireland and will become DB Schenker’s road presence there. This dovetails neatly with the existing partner arrangements with Northern Ireland Freight Services for air, ocean and warehousing, says


Redhead reaches into Europe Redhead International has,


from its early days, specialised in freight transport between the UK and Ireland through its hubs at Ballycoolin, Dublin and Newtownabbey, Northern Ireland. Since opening a small office in Carrickfergus back in 1991,


Redhead has built up a strong presence in Ireland and has become


one of the major


operators with daily services are operated between Ireland, the UK and mainland Europe. Redhead operates its own Irish fleet which handles the vast majority of these


consignments. The


reverse integration


with DB Schenker’s UK land division, which took place in early 2016, has further broadened Redhead’s


reach


across Europe. The Redhead team is now able to tap into DB’s resources, as Europe’s largest


land transport company. The partnership has enabled


Redhead to continue doing what it does best – providing reliable, affordable and flexible services


– with the added


benefit of being able to use the German company’s extensive resources and routes across Europe. The capacity to swiftly


scale up and down to meet the precise needs of customers has always been one of Redhead’s greatest strengths in the Irish market, providing a vital link in the supply chain between Ireland, the UK and mainland Europe. Redhead also has purpose-


built depots near Belfast and Dublin and has invested more than £2m in these two facilities. The 36,000sq ft Belfast


depot provides state-of-the-art warehousing and includes an 18-tonne crane. Redhead International


director Mark Cosgrove says that, since Brexit, a number of factors made it difficult to accurately predict how the Irish market would develop over the course of the next few years. “With the UK being by


Hennessy. A further


significant, and


possibly unique development is DB Schenker’s partnership with the Eire postal service, An Post to offer a new Post Logistics


service for small


and medium Irish exporters, catering for consignments in the 1-5 pallet range from Ireland to destinations throughout Europe. “It’s aimed at the smaller


exporter, who doesn’t necessarily specialise in logistics and needs a one-stop service,” Hennessy explains. An Post will operate the front


end of the service, carrying out collections throughout Ireland, using spare capacity on its trunk vehicle network, and bringing consignments to DB Schenker’s Dublin terminal for consolidation and onward movement throughout Europe. The forwarder is providing the sophisticated online ordering service, as well as tracking and


tracing, and payment can be on account or by credit card. While this isn’t the first time


a national postal service has created a logistics arm, it could well be the first partnership between a post office and a major forwarder. The service will be road-only,


at least in the early stages, and will operate to the EU and other selected European countries. It will also initially focus on exports from Ireland. However, as it uses Schenker’s


own proprietary soſtware, the concept could easily be extended to other parts of the world, for example by plugging in to DB Schenker’s sea or air forwarding


services and the


service has the capacity to offer imports into Ireland too. However, the aim is to keep things simple to start, with an easy-to-understand tariff and without introducing complex issues such as customs duties.


“The Irish market recovery


has been sustained and indeed built


upon with significant


export growth over the last few years. This has led to a return of some of the inflationary pressures on industry, with the commercial property market having had very significant double digit growth. “That said, there is still a


far Ireland’s largest trading partner, the uncertainty over the UK’s relationship with the EU, the arrangements over cross-border movement of goods and services, and the volatility of the Euro’s relationship with Sterling, make it very difficult to predict accurately market development,” he said. “Anecdotal evidence


suggests that growth will be robust judging by the commercial letting / sales market in Dublin but of course Irish exports to the UK are suffering due to the 20% depreciation of Sterling.


significant way to go before the heights of 2007 are reached so the perception in the market is that there is still value to be had. One of the best barometers of this has seen speculative building of industrial units taking place, something which had all but ceased for most of the previous decade.” Cosgrove added that Brexit


had become something of a cloud over the Irish economy: “Politicians, business organisations and business leaders are all working very hard behind the scenes to secure


the ‘softest’ possible


Brexit regarding Anglo / Irish trade,” he said. “Given the €1 billion a week


of trade between the UK and Ireland, the current situation is having an effect on investment decision-making and there is some evidence of a ‘wait and see’ approach from both business and consumers.”


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