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venture

wAllenius wilhelmsen logistics magazine for customers issue 4/2009

our induStry Challenges remain for europe's auTo seCTor reducing emiSSionS TaTa group analYses iTs supplY Chain

environmental targets for wwl by 2020

6

Smooth logiSticS

the story behind caterpillar's seamless supply chain

venture

04.2009

ConTaCT

Published by Wallenius Wilhelmsen Logistics AS, Box 38193, SE-100 64 Stockholm, Sweden editor Cathrine W. Horn Publisher responsible under swedish press law Anna Larsson editorial production Tidningskompaniet, Stockholm environmental care This magazine is produced in accordance with the Nordic ecolabelling system, the Swan Front cover A hassle-free supply chain. Caterpillar benefits from WWL's supply chain expertise. Photo: Jean-Jacques Soenen next issue March 2010 copyright Texts and images in Venture may not be republished without permission from the editor or publisher responsible

ConTenT

contAct detAils For your region region Americas +1 201 307 1300 region Asia +81 3 5220 5811 region europe +46 8 772 0800 region oceania +61 3 8605 8000

8

sTress-free Travel for CaTerpillar

Thanks to WWL and a seamless supply chain, Caterpillar can get its products to customers within two weeks of an order being placed. And without keeping a huge stock level at its dealers. Here's how they do it.

If you have any comments related to Venture or questions about subscriptions, please email: [email protected]

4 streetcars for vancouver

shipped by WWl in time for the Winter olympics and paralympic Winter games.

18 wwl sets 2020 targets

With a firm focus on improving its environmental impact.

6 size does matter

WWl takes on an oversized challenge ­ a 50,000-kilogramme steel column.

20 st. Petersburg in focus

strengthens WWl's presence in russia and the Cis region.

16 world maritime day 17 A chance to play

a clear message that shipping must reduce its Co2 emissions.

22 spotlight on the Atlantic

WWl offers increased flexibility in the world's second largest ocean.

WWl helps distribute 8,000 footballs and 2,000 football kits to kids in south africa.

24 european car industry

ivan hodac of aCea gives an overview of what to expect in 2010.

2 venTure 4 2009

eDiTorial

Wrapping up an unprecedented year

At lAst we Are seeing some signs that the markets are slowly starting

12

interview

Nordea's head of shipping, Carl Erik Steen, talks openly about how the credit crunch has affected the shipping industry and the financial challenges shipowners still face.

to recover. For Wallenius Wilhelmsen Logistics (WWL), 2009 has been marked by a significant reduction in the ocean transportation of cars and RoRo cargo. But, in recent months, it seems like the automotive and RoRo markets have bottomed out; demand is picking up again thanks to government-driven "cash for clunkers" stimulus initiatives in several countries, "wwl is actively collaborating in and continued strong growth in China. green initiatives Production levels in the automotive industry are starting to rise again for the with several first time in many months. National sales are customers" the first to recover and volumes are going into replenishing stock. We are starting to feel the knock-on effect from this higher output as exports follow. However, High & Heavy volumes, like construction equipment, are lagging behind and will take much longer to rebound.

14

spotlight on the supply chain

Determined to make its supply chain greener and leaner, Indian automaker Tata Group embarked on a hands-on research project, together with WWL, to reduce CO2 emissions. Venture shares the findings and solutions.

december mArks the eagerly awaited climate conference in Copenhagen, putting the environment firmly in the spotlight. Coinciding with COP15, we have set our environmental targets for the next decade. We have selected six ambitious targets: to reduce CO2 emissions by 50% from our vessels by 2020, to fit ballast water treatment systems on our entire fleet by the end of 2015; to reduce our sulphur emissions by 93% by 2020; to reduce our nitrogen oxide (NOx) levels by 90% by 2015; to improve maritime safety by avoiding sensitive marine areas in our route planning by 2012; and, finally, to reduce energy consumption at our land-based facilities by 30% by 2015. WWL is also actively collaborating in green initiatives with several customers. The latest example is our participation in developing a CO2 optimized supply chain for Indian manufacturer Tata. There is a strong demand for green and lean products and in addition to optimizing costs, time and quality a core feature of our supply chain management offering is to enable the reduction of CO2 emissions. And, finally, as we wrap up a tough and turbulent 2009, I would like to wish you and your families all the best for the festive season and a good start to 2010!

Arild B. iverSen President & ceo, Wallenius Wilhelmsen logistics

venTure 4 2009 3

network uPdAte

shiPPing streetcArs

bound for the winter olympics

wallenius wilhelmsen logistics has taken charge of a shipment of streetcars, sent from Bremerhaven, Germany, to Tacoma, US, on behalf of its customer, Bombardier. These demonstration streetcars are destined for Vancouver, where they will be used at the 2010 Winter Olympics.

In partnership with the City of Vancouver, Bombardier Transportation will provide a free streetcar service for the city's residents, visitors and athletes during the Vancouver 2010 Olympics and Paralympic Winter Games. Bombardier will operate the demonstration streetcars seven days a week, for 18 hours a day, between January and March 2010. WWL took care of the shipment of the

streetcars, each weighing more than 40 tonnes, on behalf of Bombardier and its forwarder, FF Fracht AG. The shipment left Bremerhaven on November 3, on board the M/V Tomar, and arrived in Tacoma, Washington, in the first week of December. As WWL did not have a specific roll trailer for this type of cargo, a special trailer was designed to make the shipment possible. The newly modified roll trailers, which are the first of their kind in the WWL fleet, will play an important part in WWL's future railcar business. After the Olympic Games, the streetcars will be returned to Bremerhaven from Tacoma.

news in brieF

poSitive trendS in cArgo quAlity

In recent years, WWL's cargo quality statistics have revealed consistent improvements. So far this year, the KPI measuring exception-free handling of new cars has reached 99.4 percent, thanks to an outstanding team effort within Ocean Operations. Going forward, WWL will continue to work closely with its customers, sister companies and

the authorities to promote continuous improvements in this area. "Cargo quality encompasses everything WWL Operations does in order to move cargo from one location to another, in perfect condition," comments Ove Moring, Head of Cargo Quality. "To secure first-rate cargo quality, we must use all our combined know-how, experience and equipment."

WWl WinS AWArd for environmentAl improvement

panel of industry experts for its environmental excellence.

WWl receiveS hondA AWArd

WWL has received the prestigious "Contribution to Environmental Improvement" award. It was named the winner in this category at the recent European Supply Chain Excellence Awards 2009 event, in London. As the only logistics company with a shipping background to be shortlisted for an award, WWL was praised by an international

For the second year in a row, WWL's technical services team at the Honda plant in East Liberty, Ohio, has received the "Processor of the Year" award which recognises the "hard work and dedication throughout the year" of WWL and its staff.

4 venTure 4 2009

Q&A

first port call to maputo

wwl has made its maiden call to Maputo, Mozambique, at the request of BMW with the intent of setting up alternative supply channels. Over 200 units were loaded on-board the M/V Otello, via the Grindrod car terminal at the port

wwl participates in oil spill clean-up operation in norway

in July, a hong-kong based shipping company's vessel Full City ran aground just off the norwegian coast at langesund. the vessel was carrying 1,000 cubic metres of heavy oil and approximately 120 tonnes of light oil, which spilled into the ocean. environmental conservation organisation WWF invited a team from Wallenius Wilhelmsen Logistics (WWL) to help clean up the oil residue onshore. We interviewed Linda Haavik, legal counsel and member of the WWL Oslo Environmental Committee, who volunteered to take part in the clean-up operations. what were the obvious consewho: Linda Haavik quences of the oil spill? title: Legal counsel and "You might read about oil spills member of the WWL Oslo and think it sounds horrible, but Environmental Committee in reality it's much worse than About: How WWL puts its you could ever imagine. Thick, environmental values into chunky oil covered a vast area practice of the shoreline, which included beaches and areas normally used for recreation. Life in the water was greatly affected. For example, there were many dead crabs, and at the port they had set up bird cleaning facilities where they cleaned birds and gave them water and food." what was your team's main responsibility? "Our job was to remove the oil from rocks and stones with metal scrapers and bark. Bark functions as a sponge ­ it absorbs the oil." how was the overall experience? "The logistics of everything was fantastic. It was very impressive to see how WWF collaborated with the locals and other volunteers, organised by the municipality and the national government. We were trained how to safely handle the materials and were provided with containers full of bark and plastic bags for waste. It felt great to make a difference in a small but concrete way." why is environmental engagement important for wwl employees? "We are environmental forerunners in our industry and it was a natural response to contribute to our local environment."

mAriA BengtSSon

on behalf of the German auto manufacturer. Maputo is closer to the province of Gauteng, the most populous province in South Africa and where around half of all BMW sales are made, than other ports in Southern Africa.

new tug-masters meet stringent environmental regulations

Four brand new tug-masters ­ currently located at Port Hueneme and Manzanillo ­ have been tailor made by Kalmar to meet WWL's specific requirements and to comply with the stringent US EPA (Environmental Protection Agency) `07 emission standards. In order to avoid damage to cargo and increase the efficiency of its in-port operations, WWL uses rolltrailers for breakbulk cargo. The rolltrailers are pushed by tugmasters. "These tug-masters support WWL's overall environmental

vision," comments Gustav Vig, Cargo Equipment Manager, Ocean Division. "They have been equipped with the technology required to meet the world's strictest emission requirements for on-road trucks. To the best of our knowledge, these are the only four-wheel-drive RoRo tractors that currently comply with EPA `07, making them the cleanest of their kind in the world." With time, tug-masters that fail to comply with the US EPA '07 standard will no longer be permitted to operate at US ports.

In recognising WWL as its top vehicle processor in North America, Honda declares WWL is becoming the "benchmark for all the other processing companies in the Honda logistics system". The "Processor of the Year" award is awarded by Honda to recognise its top

logistics suppliers for outstanding and innovative contributions to its business. The East Liberty team has succeeded in winning this award for the second consecutive year, despite facing stiff competition from service providers at four other Honda plants in North America.

venTure 4 2009 5

in the cArgo

a perfect fit

the ability to roll on and off a ship is not limited to automobiles. Wallenius Wilhelmsen Logistics (WWL) proves that every day with its RoRo vessels carrying, not only passenger cars, but trucks, heavy equipment, and a wide variety of project cargo. But when Paul Van Heurck, Manager Sales & Marketing, Key and Liner Account Management for WWL in Antwerp, received an inquiry from Belgian heavy cargo handler Belfor Logistics N.V., he knew it was something new for RoRo. "They wanted to move a column from Spain to Australia," he says. But this was no simple structural column; 36 metres long and weighing 50,000 kilogrammes, the steel structure was a major part for a plant expansion by Solvay Interox, the world's leading producer of hydrogen peroxide. Despite its massive size, it also had to be very carefully handled to avoid damage. "Technically it was quite a challenge, because it was far bigger than any other single unit we had handled," Van Heurck says. After some research, WWL's technical team found that handling the big column would in fact be possible; the solution was to construct two 30-foot roll-trailers equipped with turntables. A roll-trailer

g A 50 etting col ,000-ki um lo sPA n From Aus in to trA liA

Once safely shipped to Australia, however, the job wasn't finished. "We were responsible for everything all the way to the final destination in Sydney. We worked with a local subcontractor to come up with a specialised trailer to handle the cargo," says Matthew Jackson, Key/Liner Sales Manager for WWL in Sydney. It took two days to travel the slightly less than 100 kilometres from Port Kembla to the site, due to the oversized load. "Road restrictions required that they only travel between midnight and 5 a.m.," Jackson explains.

overall, this oversize job was a success. For Van Heurck, it illustrates how WWL's broad abilities make possible even projects never attempted before, and how teamwork pays off. And, adds Jackson, success on this project spelled additional business serving the same project. "While the first cargo was out of Europe, we were also able to pick up another large shipment for the project, this time out of Savannah, Georgia," he says. "So it all led to a very positive outcome."

WilliAm roSS

is like a massive flatbed trailer, built to securely hold and move large cargo up and down the ramp of a RoRo ship; the turntables allow the two trailers, one at each end, to rotate so that the extra-long column could be successfully maneuvered onto, and into, the vessel. "The weight was not the main problem," says Luc De Smedt, General Manager of Belfor Logistics. "The length was the critical point, because the column is fragile, and you have to support it in the middle during the ocean shipping part of the project. We contacted our friends at WWL in Antwerp, and they came up with a very good proposition to use turntables on small roll-trailers. I'm sure it was very expensive to manufacture, but it was a special solution that I'm sure there is a future for."

good timing also came into play, Van Heurck says. "The customer told us that the cargo would be ready to ship from Santander in August. Our ship, the M/V Tomar, was also scheduled to be in Spain at the same time." WWL's ships to Australia usually leave from Bremerhaven, Southampton, Zeebrugge, Le Havre and Gothenburg so this meant avoiding the added expense of shipping the column overland from Spain to northern Europe.

6 venTure 4 2009

what: Large column, 36 metres long and weighing 50,000 kilogrammes From: santander, spain to: Port Kemba, australia

venTure 4 2009 7

customer cAse cAterPillAr

With the help of WWl, Caterpillar logistics is able to deliver to its buyers within two weeks of an order being placed, and without keeping huge stock levels at its dealers.

WorDs phillip hAStingS PHotos JeAn-JAcqueS Soenen & Bill mcAllen

M

assive pieces of wheeled construction and mining equipment are totally different products to cars. But for the world's largest manufacturer of that equipment, US-based Caterpillar Inc, some of the keys to global market success are very similar to those of the car industry. "Specifically," says Dan Spellman, Vice President, Caterpillar Logistics Services Inc (Cat Logistics), "on some configurations those similar factors include the ability to deliver clean, quality-checked machines to purchasers within two weeks of an order being placed, without incurring the huge inventory costs associated with keeping large product stocks at every dealer location." In the US ­ and in a growing number of other countries around the world ­ Cat Logistics is now looking to achieve those objectives through an expanded co-operation with longstanding global business partner Wallenius Wilhelmsen Logistics (WWL) and the implementation of a concept called the Product Distribution Centre (PDC) programme. with WWL globally on the ocean transport side for many, many years. In fact, WWL is our largest ocean RoRo capacity provider and its specialisation in accommodating High & Heavy (H&H) equipment is very important because it provides us with tremendous worldwide support when it comes to distributing those products," says Spellman.

"cAterpillAr hAS Worked

8 venTure 4 2009

Think big.

cAt logistics caterpillar Logistics services inc (cat Logistics) provides supply chain solutions and integrated logistics services to its parent company, caterpillar inc, and more than 60 other leading companies across the globe. Headquartered in morton, illinois, us, cat Logistics has over 130 facilities and offices in 23 countries on six continents.

cAterPillAr inc us-based caterpillar inc was founded over 80 years ago. since then it has grown to become the world's largest maker of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines, with a 2008 sales and revenue figure of just over us$51 billion. caterpillar products and components are manufactured in 50 us facilities and in over 60 other locations worldwide.

Move fast.

venTure 4 2009 9

customer cAse cAterPillAr

"That alone would make WWL a very significant and valued business partner," says Spellman, "but WWL is now also supporting a Cat Logistics strategy which we call Lane One distribution. That is similar to an automobile industry model where you basically have a system which can quickly supply customers with a specific product in a consistent configuration. People talk about the 14-day car. We are developing the same concept for Caterpillar's equipment." That is where the PDCs come in. Those centres, explains Flavio Batista, WWL's Corporate Account Manager for Caterpillar, are dock-side operations designed to initially process and store imported Caterpillar units arriving on WWL vessels and then manage their onward distribution to dealers as orders come through. "In the past, Caterpillar used to send all its machines directly to its dealers each of which would then be sitting on a large inventory," continues Batista. "Now, they can hold the machines for a particular geographical market at one location, the PDC, and then quickly forward them to a dealer once an order comes through."

10 venTure 4 2009

Ultimately, Cat Logistics is looking to establish between 20 and 24 PDCs spanning the globe. Following the establishment of an initial two such facilities, the first in Melbourne, Australia, and the second in Zeebrugge, Belgium, the programme moved up a gear in 2009 with the opening of two more uniquely-designed PDCs at WWL's High & Heavy vehicle processing centres in the US. One is on the east coast (Baltimore) and the other on the west coast (Tacoma).

"currently the BAltimore pdc

is processing articulated trucks manufactured in northern England and the Tacoma operation is handling Caterpillar excavators coming out of Asia. But the PDCs are not productspecific ­ they could process a variety of Caterpillar construction equipment," says Spellman. "The idea is to position inventory at the PDCs so area dealers can have access to a machine within 14 days." Services provided by WWL at the PDCs start with the reception of equipment and inbound inspection. They then go on to include post-production quality

dan spellman, vice President, cat logistics.

inspection (PPQI) and rectification; storage; and pre-delivery inspection (PDI). "The receiving element involves taking the equipment off the ship, manifesting it if necessary and managing any activities relating to relocation," explains Spellman. "The inspection element is a really important one. It involves checking the machinery for any damage which might have occurred during transit, such as rust, scratches and dents. If the damage is minor, the PDC will remediate it."

the SuBSequent ppqi inSpection and rectification

A smooth And seAmless suPPly chAin according to caterpillar, the one of that company's dockchance to create a seamless side operations; our equipsupply chain was the reason ment can then be moved it chose WWL to manage its straight from the dock-side port PDcs. "a WWL roro into the PDc," says cat Loship arrives in the port next to gistics' Dan spellman. "You

have an uninterrupted chain of possession and there are always advantages to be had when you can tighten up the supply chain and reduce the number of hand-offs."

starts with ensuring that any machines which stand around in storage for a few months are periodically `exercised' to keep liquids moving and ensure seals do not dry out. Prior to being moved on to a dealer, the equipment is then inspected to make sure it is visually sound and work is carried out to remedy any minor problems, which the WWL inspectors find.

"The idea with our Lane One distribution programme is that the machines are pre-configured. As a result, we do not need to do much in the way of reconfiguration at the PDC. However, some customers might want their machines painted in a particular colour so there could be work like that to do," explains Spellman. Caterpillar equipment processed through a PDC is always stored in a segregated, fenced off and secure location, often within the port area. "One of the strengths of WWL is that its facilities are on, or very close, to the port. That is why we will work with WWL when we need a PDC either in or near to the port of entry," he concludes.

venTure 4 2009 11

Transparent companies with a clear business strategy, strong ownership, professional management and strong customer base are the ones which will survive the economic downturn and secure financing, according to Carl erik steen, nordic banking group nordea's head of shipping who has more than twenty years experience in shipping finance.

WorDs AlAnnAh eAmeS phoTos ole muSken

12 venTure 4 2009

shipping industry

challengeS for the

carl erik steen holds an m.sc in industrial management engineering from e.t.h. Zürich, switzerland. he has held a number of shipping finance positions within the nordea group since joining in 1983 and is currently head of nordea's shipping, oil services & international division. what he likes about the shipping industry: "i like the people, the way the industry is structured. it's global, addictive, very interesting and challenging."

interview cArl erik steen

over 20 yeArs' exPerience in shiPPing FinAnce

"

E

veryone in the shipping industry has been badly affected by the financial downturn because it is such a global industry. But the biggest problem today is that too many ships have been ordered and delivered. There is also an overcapacity issue which means many ships will be laid up, scrapped or the delivery of new buildings will be delayed," states Carl Erik Steen, Nordea's Head of Shipping, Oil Services & International Banking. According to Steen, shipping companies currently face two major challenges: they are sitting on longterm assets (their new vessels) with short to medium-term financing and high rates; and financing from banks for new buildings has partly dried up.

Both chAllengeS, he says, go back

to the bullish lending markets before the economic downturn. At the peak of the economic cycle, two to three years ago, there was a record number of new vessel orders across all sectors as market speculators joined established operators in ordering new ships. As a consequence, the world's 25 largest shipping banks currently have credit exposure of around USD 350 billion. At the peak, new buildings (including shipping and offshore) orders were between USD 700 and 900 billion. "Before 2007 it was very easy to raise equity and long-term finance," he explains. "But when the financial crisis started, the shipping market took a hit and some banks had to make provisions. Now, if the banks are to finance all new buildings on the order books, they will double their credit exposure. When we look back, it's obvious that there wasn't enough capacity to finance these new buildings."

"Tonnage speculators that ordered vessels during the peak years will struggle to secure financing"

"But, fortunately, we only have around two percent of our loans tied up in the hard-hit container shipping segment compared to some German banks which have risk exposure of 25­40 percent." In turn, the banking industry has tightened its purse strings due to increased risk, increased equity requirements and more expensive long-term financing. Only a few banks today ­ among them Nordea - still offer financing for new buildings, and only to "transparent companies with a clear business strategy, strong ownership, professional management and strong customer base," according to Steen. "These companies will survive, whereas the tonnage speculators that ordered vessels during the peak years will struggle to secure financing for their new-building commitments. The established operators already have enough vessels and don't need to order more," he says.

lending mArginS have also increased

NORDEA'S SHIPPING DIVISION

nordea's shipping and offshore finance division employs around 100 people. it is headquartered in oslo with other specialists located in Denmark, finland, sweden, London, new York and singapore. the bank plays a key role in financing and advising on global shipping activities. the bank arranges syndicated loans to the shipping and offshore industries with a share of around 15% of syndicated shipping loans worldwide.

nordeA currently has around EUR 14 billion, or 4

percent of its total lending, tied up in its shipping and offshore segment and holds around 15 percent of the world's syndicated shipping loans. Like other banks, Nordea has felt the crunch of the shipping industry's overcapacity and slow demand challenges, which have depressed freight rates.

in all segments as a result of the financial crisis. The banks are paying more to borrow money and are passing on these increased costs to their customers. Which poses the next problem. "Many shipping companies already had prefinancing for new buildings in place. If you order a ship for USD 100 million and you obtain 70 percent financing but the value of the ship drops to USD 50 million then you have to put in much more equity. A lot of people thought they had appropriate financing but they didn't," Steen points out. To succeed in obtaining finance today, Steen says shipping companies must present a strong balance sheet with sufficient equity and a strong cash flow. "Some areas like the container and bulk segments will be tough for years to come so it is important for these companies to exercise a cautious attitude when looking for finance," he warns. "Going forward, I think shipping will be a profitable industry again but a lot will happen in this time. I believe we will see more consolidation in the shipping industry," Steen concludes.

venTure 4 2009 13

WWl and india's Tata group recently embarked on an intensive project to reduce carbon emissions in the supply chain. The results? lower emissions and costs.

C

WorDs WilliAm roSS illusTraTion nilS-petter ekWAll

Cutting emissions

short term

n these steps will give n improved truck

arbon emissions is an increasingly important challenge for automakers ­ one that soon may involve very real costs. While most carbon impact comes through the combustion of fossil fuel when using the car, an innovative new project bringing together Wallenius Wilhelmsen Logistics (WWL), Indian automaker Tata Group and energy consulting group Xyntéo examined how to reduce carbon emissions through supply chain optimisation, from the time cars leave the factory in Pune, India, to their arrival at

dealers in South Africa. They discovered that, overall, carbon emissions and costs could be reduced by as much as 17% and 8% respectively by implementing some changes in the supply chain. The project itself was part of the Tata Group's ongoing efforts to address the increasing challenges of greenhouse gas emissions. "India is behind as far as the world is concerned on low-carbon growth," says Dr. J.J. Irani, Director, Tata Sons. "Scandinavian companies have been more conscious about environmental challenges, and we are looking for the

experience of other global conglomerates. We are not shy about learning!" The partners apparently also were not shy about taking on a very challenging project schedule. "The idea was initially launched at the Global Leadership and Technology Exchange (GLTE) programme, which both the Tata Group and Wilh. Wilhelmsen are members," says Nils Lie of WWL in Norway, and the manager of the project. "But an idea is only an idea until someone acts on it, and the first detailed discussions with Tata Motors were in March 2009. We started gathering data in late April and presented the basic findings to Tata in June."

the goAl of the project was to design a model for measuring the supply chain ­ not only in traditional terms of cost, time, and quality, but also its environmental impact in terms of CO2 emissions ­ and to collect detailed information on Tata's supply chain

an estimated short-term saving of approx 6% of co2, and 4% of costs per unit (based on 3,000 units ­ the actual volume of the product line used for this study).

design (aerodynamic).

n improved backhaul utilisation from factory to port.

n

improve forecasting process to to increase vessel capacity optimisation.

n several lead time reduction initiatives.

n reduce fuel filling of each vehicle. 14 venTure 4 2009

from the Pune factory to South African dealers. The team physically examined data for every leg of the supply chain on the ground, ran alternative scenarios and presented various solutions to Tata Motors. The team concluded that it was not a matter of changing one single factor. Instead they identified a number of short, medium and long-term opportunities for Tata Motors to reduce its carbon impact, and costs.

for exAmple, instead of fully tanking new

in the supplychain

n replace own wheels transport with truck transport Durban Port to VPc.

cars, they could be filled with just enough fuel for pre-shipment movements; reducing lead times for delivery; and improving capacity on trucks hauling cars to ports. The team even identified factors such as implementing more aerodynamic trucks ­ something that concerns sub-contractors as well, and which also provides emissions benefits to the entire supply chain. In addition, the research highlighted that improved planning and scheduling for ship-

ping would reduce the length of time cars needed to be stored at the port of Mumbai. This would reduce storage costs and the risk of handling damage. Looking long-term, the project team noted that a switch to rail from Durban to the major markets of Johannesburg and Cape Town would provide a huge reduction in carbon impact and costs. And, while some scenarios such as this would require not only Tata Motors' action but that of other companies or governments as well, the company is already moving on the report's findings.

"We Are in the proceSS of implementing one of the short-term improvements ­ reducing fuel filling - right now, and are investigating other potential implementations," says the Tata Motors' S. Ravishankar, a member of the project Steering Committee. "We had very good interaction with the other partners, and a

very productive exchange of information, and we will now share the project findings with all companies in the Tata Group." Even though WWL does not in fact operate a service from India to South Africa, it still embraced the chance to work on this project with Tata Motors. "During this project, we developed a very robust carbon calculator, covering all types of transport modes globally," says Lie. "We can now use this model to optimise supply chains based on carbon emissions," he adds. "We also developed a strong relationship with Tata and learned a lot about India through this innovative project. We both have high ambitions to reduce carbon emissions and we hope that we can continue to work together on these goals in the future." "Now we will take the technology we have developed, and offer similar supply chain optimisation studies ­ and potential CO2 and cost benefits ­ to other customers as well."

n enhance truck driver training through social engagement.

long term n there is also a significant long-term saving potential. By replacing trucking by rail transport for units from Durban to Johannesburg and from Johannesburg to the cape town area, it is possible to save 17% of co2 and 8% of costs per unit.

n apply knowledge transfer from this project to other domestic/ export supply chains to share the benefits of the findings. venTure 4 2009 15

world mAritime dAy

united front to fight the earth's climate change

wwF, the conservation organisation, recently took advantage of the imo's world maritime day to challenge the shipping industry to reduce its carbon footprint. it also urged shipping companies to invest in solutions to reduce emissions. wwl is already active in both areas as a partner in wwF's high seas conservation Programme.

While Shipping

A

remains the most carbonefficient form of transport per unit, compared with road or air transport, for example, it still accounts for 2.7 percent of global CO2 emissions. The resounding message at the World Maritime Day in September, a global annual event organised by the International Maritime Organisation (IMO), was that a considerable reduction in CO2 emissions will be necessary to prevent climate change from spiralling out of control. The future of the shipping industry will therefore depend on its ability to find innovative ways of increasing energy efficiency and limiting emissions. "Wallenius Wilhelmsen Logistics (WWL) is firmly committed to reducing the environmental impact of its operations. We are working closely with our partners at WWF to support efforts to increase environmental stewardship in our industry," says Melanie Moore, Global Head of Environment and Quality Management at WWL. partnership with WWF centres on a mutual commitment to improving high seas conservation

WWl'S long-term

and governance through the High Seas Conservation Programme. At the World Maritime Day, WWF called on the shipping industry to accept the same level of responsibility as that of the industrialised nations when reducing its carbon footprint. This would effectively require the industry to reduce its CO2 emissions by 40 percent below 1990 levels by 2020, in order to limit global warming to under the crucial 2ºC temperature rise average. WWF went on to "urge responsible shipping companies to improve efficiency... and increase funding for development of innovative propulsion systems and other solutions to reduce emissions". "The industry recognises the urgency of the need to reduce its impact on the environment," says Moore. "At WWL, we are committed to adapting our business to be ahead of future societal demands ­ as this will enable us to safeguard future deliveries to our customers."

iSABelle kliger

the World mAritime dAy

is a global annual event, organised by the international maritime organisation (imo). it showcases the maritime industry and its

contribution to society, and draws attention to important industry-related issues. the goal of the 2009 event, which focused specifically on climate change, was to

attract public, private and governmental attention to the many environmental initiatives within the maritime community to reduce the effects of climate change.

16 venTure 4 2009

giving children a

wwl is supporting volkswagen's efforts to help less fortunate south African youth share in the excitement of next year's football world cup through the "A chance to Play" initiative.

the World cup in 2010 is expected to generate thousands of jobs, billions of dollars in tourism revenue and attract hundreds of thousands of foreign fans to host nation South Africa next summer. But the poorest members of society ­ and children in particular ­ are expected to miss out on the World Cup bonanza. To ensure that poor South African youngsters share in the excitement generated by the world's most popular sporting event, Wallenius Wilhelmsen Logistics (WWL) is supporting "A Chance to Play", a three-year initiative focusing on the plight of children and young people in poor areas, created by Volkswagen and German child rights organisation Terre des Hommes. The programme, which is timed to tie in with the upcoming World Cup in June and July next year, links sport and playing with learning and training programmes. Through this the organisers behind the initiative hope to help less privileged children learn to hold their own ­ on the football pitch and in life in general.

chAnce to PlAy

A group effort: Arthur water, msc director; claudia berker, "A chance to Play" project co-ordinator; sibongile williams, vw of sA hr specialist; xavier leroi, wwl's representative in south Africa and riaan de bruyn, schnellecke area controller, at the Port elizabeth harbour.

As part of the initiative, WWL shipped free-of-charge more than 8,000 footballs and 2,000 football kits from Volkswagen's headquarters in Wolfsburg, Germany, to South Africa.

"very feW South Africans are going to be able to go to the matches, or to enjoy the economic boom that is expected to accompany the World Cup," says Xavier Leroi, WWL's representative in South Africa. "This initiative is a great way for Volkswagen and the supporting companies to get

these youths ­ who love soccer ­ involved. We are delighted to have played our part." Leroi says that WWL's involvement with "A Chance to Play" fits in perfectly with the company's wider corporate social responsibility efforts. "At WWL we are committed to these communities, and supporting this initiative is a good way to show it." Moving the 162 pallets loaded with the footballs and kits from Germany to South Africa took 35 days. German transport company Schnellecke transported the pallets from Wolfsburg to the German port of Bremerhaven. WWL then shipped them to Port Elizabeth harbour over 21 days. Once there, Schnellecke transported the pallets to the Mediterranean Shipping Company's facility in the Nelson Mandela Bay Logistics Park, where they arrived in mid-September.

dAvid WileS

wwl And volkswAgen in south AFricA

WWL has been working with the Volkswagen (VW) group in south africa since 2006, managing the distribution of vehicles from VW's manufacturing plant in uitenhage, near Port elizabeth, by road, rail and sea to their final market destinations, mainly europe and australia.

venTure 4 2009 17

6

1

WorDs dAvid WileS

18 venTure 4 2009

TargeTs for susTainable logisTiCs bY 2020

wwl has drawn up six highly ambitious environmental objectives in collaboration with the conservation organisation wwF. chosen based on their scale and urgency, their geographic scope and their ability to make real environmental improvements, the objectives go beyond industry standards and legal requirements.

CO2 EMISSIONS:

Wallenius Wilhelmsen Logistics' (WWL) response to the pressing global issue of rising CO2 levels is to reduce its own emissions by 30 percent in grammes of CO2 per tons x kilometre by 2015, and 50 percent by 2020. These targets will be met by optimising operations ­ using the right vessel with the right speed and load at the right ports; by using the latest technology to reduce drag and improve fuel efficiency; and in the long term by looking at new vessel designs. The current generation of ships is more fuel efficient than the last.

2

The spread of invasive marine species around the globe in ships' ballast water has major environmental and economic implications. The International Maritime Organisation's Ballast Water Convention, which aims to stop this spread, is yet to be ratified, but WWL is pressing ahead with its own plans to fit ballast water treatment systems on all new builds by 2012, and on its entire fleet by the end of 2015. Currently five vessels, or about ten percent of WWL's fleet, are fitted with the technology.

INVASIVE SPECIES IN BALLAST WATER:

3

SOx EMISSIONS:

Sulphur (SOx) emissions contribute to the acidification of water, soil depletion, forest damage and corrosion. Shipping accounts for some 16 percent of global SOx emissions and under current legislation ships can emit many thousands of times more SOx than trucks. WWL has set the target of significantly reducing its SOx emissions in Emission Control Areas (ECAs) by 2014, and of reducing them globally by 93 percent by 2020 compared with 2008 levels.

fast facts

environmenTal objeCTives

4

NOx EMISSIONS:

Nitrogen oxides have a negative effect on people's health. The emissions also play a part in acidification, eutrophication and the greenhouse effect. WWL has already reduced NOx emissions by more than 20 percent since 1999 and is aiming for a further 90 percent reduction, through technical installations, entering regional areas by 2015. While global regulations on NOx emissions will apply to new vessels from 2016, WWL will meet these standards across its total fleet by 2020 through retrofitting the technology.

5

MARITIME SAFETY:

Besides the atmosphere, shipping operations also have an impact on the oceans and the marine life found there. The threat of maritime accidents has serious implications for the crew, vessel, and the marine environment, while low-frequency noise from vessels is growing as coastal areas become congested. By 2012 WWL will include particularly sensitive sea areas and marine life migration routes in its route planning and decision support systems, thereby reducing the risk of accidents and whale strikes, and minimising noise pollution.

6

LAND-BASED ASSETS:

WWL has extensive operations on land in the form of offices, technical service and terminal areas. The objective is to significantly reduce energy consumption at these sites. A new programme will bring down energy consumption by 30 percent by 2015 through efficiency actions such as switching off lights and not idling vehicles. By 2020 fossil fuel-based energy use will be cut by 80 percent through alternative technologies such as solar, hydro, and wind power.

venTure 4 2009 19

on site

The hearT of The aCTion

russiA

offering customers a factory-to-dealer solution in a risky, but exciting and profitable, business environment, is the rationale behind wwl's new office in st. Petersburg, russia. in practice, this means integrated supply chain solutions that balance costs and risk in this challenging market.

sTepping up serviCe in

I

n November 2009, Wallenius Wilmakers of automobiles, agricultural mahelmsen Logistics (WWL) opened chinery and construction equipment in an office in St. Petersburg. The move Europe, Asia and North America is to see is part of a carefully considered their goods reach dealers and end-users on long-term plan to extend the company's time and in the same condition that they presence in Russia and the Commonleft the factory loading dock. wealth of Independent States (CIS), connecting factories to dealers and end-users. in ruSSiA And the ciS, where distances can be enormous, there is a strong need A world leader in the transportation of RoRo cargo, WWL anticipates that region- for a complete package including ocean services, inland distribution, supply al demand for its services and expertise chain management, technical services will grow strongly as the infrastructure of Russia and the CIS develops and consumer and terminal services. "Our job is to offer solutions to our customers that balance demand for mobility increases. Even costs and risk," says Axel Bantel, Vice during the recession the flow of vehicles, President Commercial/SCM, Region machinery and other goods being moved Europe. "That's why we are extending our in and out of Russia via St. Petersburg is factory-to-dealer business concept on a valued in tens of billions of euros. platform that is already effective in Russia Large reserves of energy and other natural resources make Russia an alluring and it will continue to be so as the business grows." place for foreign companies to try their WWL's aim is to establish a benchmark hand. But doing business in Russia is of quality, says Bantel: "Some Russian buyseldom simple. Profitable and successers believe they can save money by putting ful business means being able to overtogether ad hoc solutions, taking delivery come the challenges of bureaucracy and at some point along the legal uncertainty. Where services oFFered by way. At the same time they logistics are concerned, wwl in russiA And the cis are aware that WWL, with WWL answers the needs n ocean services its worldwide operations, of companies that want a n supply chain management is a safer, more certain secure means of transn technical services partner, especially when porting their goods safely n terminal services the loads require knowand on time. n inland distribution how. We are certain that The challenge for

the added value of our services is going to become more apparent with time." The new office in St. Petersburg is just one pillar of WWL's long-term plans for the Russian market. In addition to strengthening its presence in this key Baltic Sea port, WWL is also seeking an entry point on the Black Sea and another in the Russian Far East, which would give it access to the Transiberian railway which runs north of the former Soviet Central Asian republics. Improving conditions for the transit of goods from Asia to Europe via rail has been the subject of high level discussions by the Japanese, Koreans, Chinese and Russian governments for some time.

A frAgmented logiSticS chain often reduces profitability for both the buyer and seller. Supply chain strategies in Russia and the CIS vary dramatically as custom-

20 venTure 4 2009

st. Petersburg terminAl

open all year, st. Petersburg is the largest port in northwest russia. not only is it the european gateway into russia, it is also an important link between east and West, providing russia with a vital connection for trade and commerce. ships reach the Baltic sea via a 43-kilometre-long canal that is between 80 and 150 metres wide, and between 11.6 and 14.8 metres deep. WWL has been operating in russia since 2003 and first called at the port of st Petersburg in January 2009 when it started a transhipment service for High & Heavy roro cargo from the us and asia.

russiA

st. Petersburg

ers adopt very different methods of working in the region. One manufacturer may compel its agents to purchase equipment and maintain a significant inventory level while its competitor may reduce inventory in favour of manufacturing and delivery based on sales orders. Strategies for effective replenishment of spare parts may also vary. "A good understanding of our customer's individual supply chain needs means we can work together to create the optimal solution," says Kimmo Särmäkari, Managing Director, Wallenius Wilhelmsen Logistics Russia. Aside from its focus on imports to Russia, WWL is also increasing its export business on the backhaul leg from St. Petersburg. For RoRo this means shipping CIS-produced trucks, buses and tractors to emerging markets in Asia, Latin America and the Middle East. WWL's also

"We are extending our factory-to-dealer business concept on a platform that is already effective in Russia"

increasing its share of the breakbulk cargo market in Russia, focusing on time-sensitive, static and over-dimensional loads instead of low price commodities like paper, metals and petroleum.

for A numBer of yeArS

WWL has routinely directed traffic to St. Petersburg from feeder services in Sweden (Gothenburg), Germany (Bremerhaven) and Belgium (Zeebrugge). St. Petersburg will enhance the value of the feeder traffic. The arrangement often allows the company to speed up delivery times by several

days for Japanese customers by using smaller faster ships. Särmäkari is bullish on the mid and long term future. "From a global perspective, our extensive and flexible ocean fleet, coupled with our inland network and daughter companies or partner firms in RoRo, gives us supply chain connectivity that is unbeatable in this region. It also means that we can can save time for customers buying goods in Japan or the US," Särmäkari notes. Besides overseeing already established business, the St. Petersburg office will work together with its customers to explore new opportunities. "We currently receive requests for tenders to ship everything from rail cars and power generators to yachts and dredging equipment," says Särmäkari, "Russia is a large market and, despite the challenges, there will always be exciting new business dAvrell tien opportunities."

venTure 4 2009 21

on the oceAn

Flexibility in the Atlantic

The atlantic is not just the world's second largest ocean, it's also one of the most important trade routes. WWl has been active in the atlantic Trade for over 40 years and predictability and flexibility are the keywords in meeting customer demand for end-to-end supply chain services.

WorDs: rupert SAunderS

WWl iS currently

over the year so we have a number of other services that are part of the Atlantic network and can slot in to pick up any extra needs." offering 16 sailings westbound and 13 eastbound per month in the Atlantic. With the extra westbound sailings going on to cross the Pacific, the Atlantic services are not only major routes in their own right, they provide important links to Oceania and, through ports in Panama, to both coasts of South America too. In May this year WWL started services to Ecuador and Peru, adding the west coast of the continent to growing trade and connections along its eastern seaboard. Meanwhile, eastbound shipments regularly use the direct route to Scandinavia and on into the Baltic Sea for entry to northern Europe and Russia. Going forward a key focus area for the WWL Atlantic Trade will be an increased service coverage of the Mediterranean. Peterson says this comprehensive service has been developed in response to customer needs and reflects more than 40 years of WWL investment in the Atlantic trade, starting in the 1960s with vehicle exports from Europe to the US. Now vessels are capable of carrying single units weighing up to 300 tonnes, allowing a wide range of rolling equipment and break-bulk cargo to be loaded and carried with ease. High profile projects in the past have included specialist cargoes such as racing yachts, aircraft wings and windmill blades.

C

ustomers on the all-important Atlantic Ocean trade route are looking for a unique combination of fixed timetable sailings, supported by flexible services to cope with seasonal demand. In response, Wallenius Wilhelmsen Logistics (WWL) has developed one of the most comprehensive RoRo networks in the Atlantic; working both westbound and eastbound, serving a full range of major ports and all backed up with a support package of secondary routes, terminal services and complete supply chain management. Anders Peterson, vice president and head of WWL's Atlantic trade says the sheer scale of the Atlantic operation makes it one of the most complex in the company. "I would say the key word to describe our Atlantic trade is `predictability'," he explains. "We are offering a liner service with fixed weekday departures but then it's combined with a big range of back-up services which allows us, and our customers, to handle the peaks and troughs of their business. "Predictability is important because it allows our regular customers to plan their production knowing there is a vessel leaving every day and reducing downtime in the supply chain. They can build to suit that timetable," Peterson adds. "But we can also be flexible. Volumes are not stable

"The key word to describe our Atlantic trade is `predictability'"

on Both SideS of the Atlantic WWL can offer full inte-

gration with inland services such as terminal handling, inland distribution, processing and complete supply chain management from factory to dealer. This integration with inland services is what separates Wallenius Wilhelmsen Logistics from competitors, according to Dave Minetti, head of trade man-

22 venTure 4 2009

Port VPc ocean port terminals Plant VPc

Liverpool Vancouver Tacoma Oxnard/Port Hueneme Greensburg East Liberty Lafayette Elisabeth Baltimore Halifax New York Southampton

Kotka Gothenburg Bremerhaven Hannover Lehrte-Aligse Hakenstedt St. Petersburg

Zeebrugge Zülpich

Newport Smyrna News Charleston Los Angeles Canton Savannah Galveston Jacksonville Brunswick

Atlantic routes Westbound ­ 16 sailings/month eastbound ­ 13 sailings/month

San Luis Potosí Aguascalientes Cuernavaca

Manzanillo

agement for WWL USA. "Supply chain management is a strong part of our offering and our service; our care doesn't stop at the ramp of the vessel," he explains. WWL SCM capability allows customers to basically use the ship as a big warehouse and sell cars while they are on their way across the Atlantic. "With every ocean opportunity we look at how we can support the customer on the inland side. We are able to offer a seamless product from factory to end customer in both the US and Europe."

dAily communicAtion between the WWL teams on both sides of the Atlantic and the sense that "we are

one big team" is extremely important in ensuring customer needs are met, according to Minetti. Cargo can be loaded or unloaded close to local production facilities or markets, taking advantage of the full range of inland services WWL has on offer. "Our vehicle port processing centres on both sides of the Atlantic can offer a wide range of value-added services such as local market upgrades, pre-delivery inspection (PDI) and customising or exercising of stored equipment," he says. "We can tailor these services to what the customer wants; they can pick and choose from a wide portfolio. This is not about being the longest established, or the biggest, carrier in this trade lane," Minetti suggests. "It's about offering the customer a comprehensive, end-to-end service."

venTure 4 2009 23

our industry

euroPe: auTomakers' Challenges ConTinue

An exclusive interview with ivan hodac, secretary general of the european automobile manufacturers' association AceA, reveals the industry's hopes, and fears, for 2010. the early months of 2010 will be a critical period for the European car industry. Although some economies are showing signs of recovery from recession, others are lagging behind. Unemployment in domestic and major export markets is likely to continue to rise; slowing any growth in consumer demand. the dramatic fall in consumer Ivan Hodac, secretary general demand is just one of several chalof ACEA, the European automobile lenges for carmakers. Margins have manufacturers' association, says been low for some time as they ivan hodac. annual car production in the EU this invest heavily in developing new year is expected to be down 25 percent and technologies. The current high cost of credit commercial vehicle production down at least is not helping. 50 percent. He predicts 2010 "will still be a "The financial crisis has drastically limited difficult year". access to credit for manufacturers, for supMuch will depend on the attitude of pliers and for the buyers of cars, trucks and European governments towards stimulating buses," says Hodac. "This poses a real risk to the economy in general and their continued the overall value chain. Financial markets are commitment to support the industry through still not working properly and restoring them sales incentive programmes. An analysis by should be a priority for policy makers." ACEA, reveals 13 EU countries have put fleet ACEA has welcomed the EUR 9 billion renewal programmes (market incentives or funding by the European Investment Bank of car scrapping schemes) in place. loans for manufacturers' expenditure on new low-carbon and clean technologies and has called for this to continue. "Fleet renewal schemes have been helping As an industry, carmakers and supplito bridge the downturn in certain segments ers invest over EUR 20 billion annually in and, in order to avoid a sudden demand drop research and development and more than 12 in 2010, the schemes should be phased out million Europeans depend on it for jobs. More rather than stopped altogether," says Hodac. than 80 percent of the cars sold in the EU are "The speed of recovery will really depend on the pace of the economic recovery as a whole, produced in the EU. "When sales increase, tax revenues, especially in the case of commercial vehicles." consumer confidence and industrial producEvidence from markets where incention increases," argues Hodac. "More jobs are tives have ended (notably Germany and the maintained, saving governments' money on US) suggests increased demand continues unemployment benefits, job search assistfor some months as cars ordered under ance, retraining and other social welfare the schemes get delivered. However, it is costs." unlikely this short-term boost will bridge the gap to a true recovery. phillip hAStingS

MARKET OUTLOOK

Philip Wylie, automotive team leader at international investment bank, Houlihan Lokey, says sales in the major European markets "would have been at least 10 percent worse (year on year), had incentives not been introduced" and is expecting further falls in 2010. John Fleming, chairman of Ford Europe, told the BBC in a recent interview that car manufacturers "could lose sales of 13 to 14.5 million units without the scrappage" and joined calls for them to be phased out gradually.

24 venTure 4 2009

Total new commercial vehicle registrations in Europe

CV registrations in 2007 Units in thousands CV registrations in 2008 CV registrations in 2009 % change year on year in CVs Percentage

300 250 +2,2 200 150 100 50 0

+9,9

20

+7,8 -5,6 -5 6 -4,9 49 -4,9 -20,8 -20,8 2 8 -30,8 -30,8 30 8 0 -8, -7,9 -8,6 -7,9 -9,1 -9 9,1 -17,0 -17 -17,0 -24,4 -2 4 24 24,4 33, 33,7 -34,6 -3 34 4,6 -33,7 -35,5 -3 35, 35,5 -3 32, 32,9 -32,9 -38,7 -38 7 8,7 -42 -39 -42,4 -39,0 2,4 9,0 -35,1 -35,1 35 1 5

10 0 -10

-27,7 -27 -27, -20

-30 -40 -50

jan feb mar apr may jun jul aug sep oct nov dec jan feb mar apr may jun jul aug sep

2007­2008 2008­2009

New passenger car registrations in Europe ­ last 12 months

2007 volumes 2008 volumes 2009 volumes % change year on year

Units in millions

1,9 1,7 1,5 1,3 1,1 0,9 0,7 0,5

-27,0 -27 -2 0 -1 -14,4 14,4 -25 -25,8 -17,8 -17,8 -18,3 -1 -9,0 -1 -12,3 -1 -4,9 +2,4 +2,8 +3,0

oct t

nov

dec d

jan j

feb f b

mar

apr

may

jun j

jul j l

aug

Percentage 15 +11,2 +6,3 10 5 0 -5 -10 -15 -20 -25 -30 sep oct t

2007­2008

2008­2009

SOURCE: ACEA GRAPHICS: SVENSKA GRAFIKBYRÅN

venTure 4 2009 25

insPirAtion

wwl's role in the world solar challenge

semi-trailer, the fragile solar car itself travels in an the tenth solar-powered car race, the World air crate whose size does not conform to a normal solar challenge 2009, saw 32 environmentally pallet load. friendly cars of the future put to the test in a gru"this means not every logistics handler can elling 3,000-kilometre race across the australian manage our crate, but WWL tailor-makes a soluoutback, from Darwin to adelaide, powered tion to handle it," she adds. only by the sun. the race challenges the cars' technology and the research behind them as we the infinium left savannah, georgia, on board search for an eco-friendly transport solution for the M/V Tombarra and arrived in melbourne, austhe future. tralia, on september 9, to start WWL transported the infinium, the race on october 25. which took third place in the race, the inFinium "unfortunately, despite running on behalf of the solar car team Weighing only 400 pounds a steady and consistent race, based at the university of michigan and with a top speed of 87 pulling over for no more than six in the us. miles per hour, the infinium minutes a day for maintenance, shipping infinium and the team's uses solar panels that 15-metre semi-trailer ­ which convert sunshine into power and battling it out for second place, during the last leg of the contains all the team's spare parts, that is stored in highly race we got low on battery power machinery and equipment - is no efficient lithium batteries. in an uphill stage," says unger. easy task, especially since it was "it was heart-breaking not to the longest trailer in the race, says win, but we proved that our car is very robust merachel unger, operations Director for the team. chanically; it was able to run at around 92 kilometres per hour from 8 am to 5 pm each day, powered "we've transported our equipment twice solely by solar energy." already with WWL ­ which was recomnext stop for infinium is the north amerimended to us by our contact at ford - so can auto show in January, in Detroit. and they were our first choice again as thereafter the north american solar everything always arrived on time and challenge. was never damaged." aside from the extremely long AlAnnAh eAmeS

the eleven years 1995 to 2006 rank among the twelve warmest years in the instrumental record of global surface temperature (since 1850).

Source: IPCC

1 1

tell the difference between emissions from an Asian factory, the exhaust from a north American suv, or deforestation in south America or Africa.

Business Week analyst James c. cooper in his Business outlook, august 10, 2009

"our atmosphere can't

"

80%

80% of all carbon dioxide (co2) emissions are generated by urban activities.

Source: United Nations Environment Programme (UNEP)

uPcoming events

mArch 2­4, 2010 Automotive logistics europe conference WWL is a global sponsor of the event, and will be one of the speakers at the conference. location: The Grandhotel Petersberg, Konigswinter, Bonn, Germany more information:

www.automotivelogisticseurope.com

PHoto: scott gaLVin, u-m PHoto serVices

26 venTure 4 2009

Ask the

captain

is well secured at the port before departure. Another important factor is voyage planning to try and avoid bad weather as much as possible!

For this purpose we have a very

Stein-Erik Flø, captain on M/V Tamesis

hoW Do You seCure Cargo on The ship During baD WeaTher?

First of all we shouldn't start

signs of recovery in the auto industry

throughout 2009, the US auto in-

securing the cargo during bad weather. Good seamanship is about being prepared before encountering any bad weather or by avoiding adverse weather. I joined the M/V Tamesis in Singapore in September bound for Shanghai. To prepare for a safe journey, the cargo is secured in the best way possible by the stevedores according to the ship's specific securing manual and Wallenius Wilhelmsen Logistics' instructions so we are well prepared before hitting any bad weather. The officer on duty and the chief officer, together with the deck crew, closely monitor the cargo loading operations making sure it

good cooperation with SMHI, the Swedish meteorological institute. Before leaving port, and especially when crossing the Atlantic, North Pacific or any other major oceans, we receive a forecast and route recommendation from SMHI based on their weather forecast. During the ocean crossing it is very important to regularly inspect the cargo decks and the condition of the cargo lashings, and to retighten or add more lashings if necessary.

In addition to SMHI's weather service we use a computer programme called ChartCo that provides weather prognoses and forecasts up to 10 days. Together with the other information available today, this is a good aid. Having sailed for Wilhelmsen for 35 years I can say that we experience much less bad weather nowadays than a couple of decades ago due to the availability of better weather information.

Ask the cAPtAin:

What would you like to ask the captain? Send your questions to [email protected]

dustry has been pummeled by the global financial crisis. The number of autos sold in the US plummeted from 17 million vehicles in 2007, down to 13.5 million in 2008, and down again to a projected 10 million in 2009. But signs of recovery are beginning to appear both in the auto industry and the economy overall. Although very few people at the recent Global Automotive Logistics Conference in Detroit saw a return to 2007 auto volumes in the near future, growth is once again the expectation. JD Power & Associates, a global marketing information company, predicts that auto volumes in 2010 will be up one percent from 2009. One can also expect a slow but steady recovery to peak volumes over the next seven to ten years, and a supply-driven shift towards smaller vehicles.

reaDing Tips from cArl erik steen

carl erik steen is head of shipping, oil services & international banking at nordic banking group, nordea.

merging AcroSS BorderS: people, cultureS And politicS

the World iS flAt

the White tiger

Authors: Anne-Marie Søderberg/

Author: Thomas L. Friedman About: Bestselling book that

Author: Aravind Adiga About: Winner of the Booker prize

Eero Vaara

About: The cultural dynamics

analyses globalisation, primarily in the early 21st century.

involved in complex cross-border mergers, including the quadruple cross-border merger of Nordea.

for 2008. It is entertaining and well written, and provides a sharp look at the reality of India's economic miracle.

venTure 4 2009 27

ECONOMY

If undeliverable, please return to: Exchange Office SPI STO 8010 Zurich-Mulligen Switzerland

P. P. Swiss Post CH-8010 Zurich Mulligen

A1,000 ton mon

Stepping up Service in the AtlAntic 14 credit crunch impActS Shipping induStry 12 A chAnce to plAy for South AfricAn kidS 17

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