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					                                                                               THE M A G A Z I N E FO R C U S T O M E R S      IS S U E 0 3 | 0 7



                                                       AIR CARGO
                                                       Setting new
                                                       standards for
                                                       global security P. 32
                                                       SWITZERLAND
                                                       World’s longest
                                                       mountain tunnel
                                                       drives freight from
                                                       road to rail P. 52
                                                       WINE
                                                       Moving vintages
                                                       from vintners to
                                                       bon vivants P. 60


                                                                                                Dubai
                                                                                                 oves
                                                                                                moves on
                                                                                                  from oil
I SSU E 03 | 07




                                                                                                              A vision of its role in
L O GI S TI CS – TH E MA GAZI N E F O R CUS TOM ER S




                                                                                                              the global supply chain
                                                                                                              underpins the emirate’s
                                                                                                              extraordinary boom P. 14
                                                                                                                                                                                                 Editorial




                                                                                                                  Dear business partners and
                                                                                                                   friends of DB Logistics,
                                                                                                       The boom in Dubai seems to have sprung              Railion traffic on this important North–South
                                                                                                       out of nowhere. It’s a bit like a fairytale. This   corridor between northern Europe and Italy.
                                                                                                       is a place where tradition meets modernity
                                                                                                       and family clans decide the prosperity              In vino veritas: The global wine trade is a
                                                                                                       or adversity of the economy. In our cover           business for connoisseurs. Fans of the vine
                                                                                                       story, which starts on page 14, discover how        put their trust in sophisticated logistics chains
                                                                                                       this Eldorado of the 21st century, teeming          that stretch from the doorstep of the wine-
                                                                                                       with self-assurance, realized its ambitious         grower to the shelves of the wine merchant.
                                                                                                       visions and became a world champion in the          Schenker is consolidating the knowledge
                                                                                                       business of doing things faster, larger, and        gained from handling wine from around the
                                                                                                       louder. In an interview on logistics, Schenker      world in a skills center, thus ensuring wine-
                                                                                                       CEO Dr. Thomas C. Lieb explains how                 lovers a steady flow of pure enjoyment.
                                                                                                       Deutsche Bahn AG is participating in this
                                                                                                       startling success and strengthening its posi-       Have I caught your attention? If so, I wish you
                                                                                                       tion in Dubai and the Middle East.                  an inspiring read.
“With Intermodal, my containers are always
                                                                                                       The pilot disembarks ... but not before
             on the right track all over Europe.”                                                      guiding the ship safely into port. Due to the
                                                                                                       worldwide boom in shipping traffic, experts
                                                                                                       such as Arne Wegner are more in demand
                                                                                                       than ever before. We join the navigator on his
               Intermodal, the No. 1 in Combined Transport,                                            difficult course from the mouth of the Elbe
               connects Europe’s economic centres through its                                          to the port of Hamburg.
               far-reaching network systems.
                                                                                                       A tunnel with a great future! Join us on
               For more than 40 years, we have been offering efficient                                 page 52 as we enter the new Lötschberg base
               rail carriage in Combined Transport as well as additional                               tunnel, a milestone in rail freight transporta-
                                                                                                       tion stretching almost 35 kilometers through        Yours truly,
               services such as terminal and transshipment management
                                                                           Photo: Max Lautenschläger




                                                                                                       the Alps. The underground route has made
               from a single source. Together with our partners, we
                                                                                                       it possible to cross the main alpine ridge at       Dr. Antje Lüssenhop
               move some 3 million loading units per year, in maritime                                 less than 1,000 meters above sea level for the      Senior VP, Communications
               and continental transport.                                                              first time, and is providing new prospects for      DB Logistics
               Intermodal
               Railion Deutschland AG, Leipziger Platz 9, 10117 Berlin
               www.db-intermodal.com, e-mail: info@db-intermodal.com                                                                                                                                  LOGISTICS | 3
               Service number: +49 (0)180 5 331050
Contents SEPTEMBER 2007




                                                                                                                                                                                                                                     32
                                                                                                                                                                                                                                     John Edwards of the IATA


       28                                                                                                                                                                                                                            News
                                                 Photos: A. Multhaupt, U. Baumgarten/vario images, ArabianEye/Agentur Focus, M. Wetli Graphics: KircherBurkhardt Infografik



       The world of                                                                                                                                                                                                                  All the latest developments
       harbor pilots                                                                                                                                                                                                                 at DB Logistics 6

                                                                                                                                                                                                                                     How does it work?
                                                                                                                                                                                                                                     Recycling old cell phones
                                                                                                                                                                                                                                     and worn-out PCs 12

                                                                                                                                                                                                                                     Interview
                                                                                                                                                                                                                                     Cargo security expert
                                                                                                                                                                                                                                     John Edwards 32

                                                                                                                                                                                                                                     People
                                                                                                                                                                                                                                     Who’s making things happen
                                                                                                                                                                                                                                     at DB around the world 36

                                                                                                                                                                                                                          14
                                                                                                                                                                                                                Dubai heads
                                                                                                                                                                                                                                     Essay
                                                                                                                                                                                                                                     Why big money is moving
                                                                                                                                                                                                                                     back into US railroads 46
                                                                                                                                                                                                                 for a future
                                                                                                                                                                                                                                     Milestones

                                          40
                                     Pipelines
                                                                                                                                                                                                                  beyond oil         Taylorism, Toyota and the
                                                                                                                                                                                                                                     history of lean production 48

                                                                                                                                                                                                                                     Update
                                       are hot
                                                                                                                                                                                                                                     Late-breaking news 66

                                                                                                                                                                                                                                     Last Word

   Vision                            Power                                                                                                                                    Solutions
                                                                                                                                                                                                         Look and learn:
                                                                                                                                                                                                         Recycling electronics and   So why do airlines lose
                                                                                                                                                                                                         home appliances 12          your luggage? 70

                                                                                                                                                                                                                                     Preview
   14      Dubai                     40   Pipelines                                                                                                                           28   Harbor pilots                                     A look at what’s coming in our
           The tiny emirate has           Pros and cons of trans-                                                                                                                  Guiding ships into                                December issue 71
           transformed itself into        continental conduits                                                                                                                     the port of Hamburg
           the El Dorado of the                                                                                                                                                                                                      In search of a logistics
                                     52   Lötschberg tunnel                                                                                                                   60 Wine                                                solution? Contact the office
           21st century. We look
                                                                                                                                                                                                                                     nearest you 69
           behind the scenes of           Swiss transport policy                                                                                                                 The quality of wine
           this stunning success          is moving mountains                                                                                                                    depends on logistics
4 | LOGISTICS                                                                                                                                                                                                                                                      LOGISTICS | 5
News
                                                                                                                                                                                                Yet another
                                                                                                                                                                                                goodbye: The last
                                                                                                                                                                                                performance before
                                                                                                                                                                                                the circus moves on.




                                                                                                                                                                                                                        Load it up: A Railion employee checks a
                                                                                                                                                                                                                        circus wagon’s fit. The trains generally
                                                                                                                                                                                                                        travel to the next location overnight.




                                                                                                                               Antique circus wagons on European tour
                                                                                                                               ■ Circus life is one of constant change, of   tion even before the last performance      the past century along with the magic
                                                                                                                               arrivals and departures. This is certain-     has finished,” explains Gerhard Bar-       of Roncalli’s antique wagons and elabo-
                                                                                                                               ly the case with Germany’s most spec-         nasch, key account manager for car-        rate decorations. At the moment, the
                                                                                                                               tacular and admired circus, the Ron-          nival transports at the Schenker sub-      circus is on its way between Munich and
                                                                                                                               calli. Every couple of months the 100         sidiary Railog. “Just two or three days    Luxembourg with a special anniversary
                                                                                                                               or so antique but meticulously restored       later, the wagons will be ready for        program. The next destinations are
                                                                                                                               circus cars with which the Roncalli an-       the performance at the next venue.”        Hanover, Bielefeld, Frankfurt am
                                                                                                    Photos: Christian Hacker




                                                                                                                               nually tours through Europe have to           Barnasch has been organizing Roncalli      Main, and Nuremberg. And while the
                                                                                                                               move on to a new venue. The wagons            train transports for the past six years.   performers go to Berlin in December,
                                                                                                                               are more than a century old and can           To date, 15 million people have taken      the wagons will be heading to their win-
   Hitching a ride: The first wagon is towed to the train station before the last performance has                              only be transported by rail. “The first       in the nostalgic amusement park at-        tering grounds in Cologne.
   finished. The wagon will then be transferred onto a train and securely lashed.                                              cars are being taken to the train sta-        tractions harking back to the turn of      www.roncalli.de

6 | LOGISTICS                                                                                                                                                                                                                                                LOGISTICS | 7
News
       Space simulation: An ATV
       docks with the International                                                     Supplying
                                                                                        outer space
       Space Station.



                                                                                        ■ It’s probably the most expensive
                                                                                        trash can in the world. Jules Verne, an
                                                                                        automated transfer vehicle (ATV),
                                                                                        will transport new supplies to the
                                                                                        astronauts on the International
                                                                                        Space Station at the beginning of
                                                                                        2008. After that the transporter will
                                                                                        burn up in the earth’s atmosphere
                                                                                        with 6.3 tons of trash on board. In the
                                                                                        middle of this year, Schenker coordi-
                                                                                        nated the transport of parts for the
                                                                                        ATV and also brought approximate-
                                                                                        ly 40 sea containers full of equip-
                                                                                        ment for the ground station from the
                                                                                        Netherlands to the European space-
                                                                                        port at Kourou in French Guiana.
                                                                                        www.esa.int




                                          China forms intermodal network                                                                                                                   INTERVIEW
                                          ■ New logistics company in China: At
                                          the end of May, the Chinese Railway
                                                                                        establish a competitive inter-modal
                                                                                        rail transportation network in
                                                                                                                                                                                           DB Logistics head
                                          Ministry, along with seven investors          China with new, high-performance                                                                   Dr. Norbert Bensel
                                          including Deutsche Bahn, founded              terminals. In the meantime, Inter-                                                                 What does the Deutsche Bahn
                                          the logistics company China United            modal is preparing for increased                                                                   get from this deal?
                                          Intermodal Rail Containers, with              traffic in goods going to and com-                                                                 EWS and Transfesa optimally           New owners: EWS Managing Director Keith Heller will likely become a DB employee.
                                          headquarters in Beijing. The DB sub-          ing from China. “We would like to                                                                  supplement the DB Logistics

     Fast cars in                         sidiary Intermodal is involved in the
                                          project as the party responsible for
                                                                                        successfully transfer the European
                                                                                        model for hinterland transportation
                                                                                                                                                                                           product portfolio. By integrating
                                                                                                                                                                                           them, we tangibly expand our mar-     DB expands network with
     Bremen                                                                                                                                                                                                                      acquistion of EWS
                                          combined-transport know-how. The              to China,” explains Dr. Sebastian                                                                  ket share of rail freight transport
                                          intention of the new company is to            Jürgens, director of Intermodal.                                                                   in Europe and simultaneously
                                                                                                                                                                                           raise the quality of our services.
     ■ In July, DaimlerChrysler and                                                                                                                                                        What do customers get from it?        ■ Deutsche Bahn has taken over the             gistics network because of the services
     Schenker kicked off operations in                                                                                                                                                     Since our customers demand and        British company English Welsh Scot-            it offers to the energy industry as well
     the new supplier park in Bremen.                                                                                                                                                      require increasingly complex solu-    tish Railway Holding Limited (EWS),            as in the areas of industrial cargo and
     In the industrial park, which                                                                                                                                                         tions worldwide, we are optimiz-      and has also acquired a majority hold-         building materials. Employing nearly
     supports the assembly of new                                                                                                                                                          ing our international setup. With     ing in Transportes Ferroviarios Espe-          5,000 people, the company generated
     Mercedes-Benz models, Schenker                                                                                                                                                        EWS and Transfesa we are com-         ciales (Transfesa) of Spain. With these        turnover of approximately €770 mil-
     employees coordinate the transport                                                                                                                                                    mitted to offering our customers      new acquisitions, DB intends to expand         lion in 2006. Meanwhile, the Spanish
     of goods between suppliers and                                                                                                                                                        integrated services in one place.     its top position as an international op-       firm Transfesa is an internationally ac-
     factory. Approximately 21,000                                                                                                                                                         What effects does the acquisition     erator in European rail transport. With        tive transport and logistics service pro-
                                                                                                                                  Photos: ESA, Daimler Chrysler, Polaris/laif, DB AG (2)




     vehicle parts and modules are de-                                                                                                                                                     have on France and the SNCF?          both companies under the umbrella of           vider that specializes in rail and road
     livered punctually to the assembly                                                                                                                                                    We’ve worked closely with the         DB Logistics, Deutsche Bahn now has            transport for the automotive, bulk car-
     lines each day. “The industrial                                                                                                                                                       SNCF for years and would like to      direct access to all transport and logis-      go, and general cargo sectors. Due to its
     park is an important facility for                                                                                                                                                     continue to do so in the future.      tics markets in western Europe. EWS            strong presence in the Iberian region,
     the Bremen factory. With it, we                                                                                                                                                       The SNCF holds a 20 percent           is Britain’s largest rail cargo company        as well as its position as an operator of
     can ensure that our customers                                                                                                                                                         share of Transfesa, and EWS has       and one of the largest freight cargo           axle-gauge changeover points, Trans-
     get their personalized vehicle as                                                                                                                                                     recently been active in the French    companies in all of Europe. In addition,       fesa offers DB Logistics access to the
     quickly as possible and on the                                                                                                                                                        market. Through our new ser-          EWS recently became active in France           southwest corridor. In 2006, Transfesa
     agreed-upon delivery date,” says                                                                                                                                                      vice offerings, we can gain new       through its subsidiary EuroCargoRail.          generated a turnover of approximately
     factory director Peter Schabert.                                                                                                                                                      transportation for the railways.      English Welsh Scottish Railway is an           290 million. The company currently
                                          Transferring the European model: A ship is unloaded in Hong Kong.                                                                                                                      especially good addition to the DB Lo-         has about 1,100 people on its payroll.

8 | LOGISTICS                                                                                                                                                                                                                                                                                                       LOGISTICS | 9
                                                                                                                                                                                                                                                                                                 REARVIEW MIRROR


                                                                                                                                                                                                                                                                                                 Portugal
                                                                                                                                                                                                                                                                                                 looks to
                                                                                                        The Kronotex facility:
                                                                                                        Everything you need to
                                                                                                       laminate some flooring.
                                                                                                                                                                                                                                                                                                  the sea
                                                                                                                                                                                             Search engine: Sixty-four radio telescopes will join forces in Chile’s Atacama Desert.           EU transport policy to
                                                                                                                                                                                                                                                                                             get more maritime under
                                                                                                                                                                                             Looking deep into the universe                                                                   Portuguese presidency
                                                                                                                                                                                             ■ If one day earthlings discover alien             be assembled. Sixty-four individual         ■ “During our presidency, we par-
                                                                                                                                                                                             civilizations, it might just be because            12-meter telescopes will be intercon-       ticularly focused on processes that
                                                                                                                                                                                             of Schenker. In the middle of this                 nected to form one big supertelescope.      promote climate protection while

   Block train concept for Kronotex                                                                                                                                                          year, logistics experts from Schen-
                                                                                                                                                                                             ker in the UK’s Global Project Team
                                                                                                                                                                                             transported parts for a radio telescope
                                                                                                                                                                                                                                                The project is a multinational coop-
                                                                                                                                                                                                                                                eration between Japan, Europe, the
                                                                                                                                                                                                                                                United States and Chile. Beginning in
                                                                                                                                                                                                                                                                                            safeguarding economic growth and
                                                                                                                                                                                                                                                                                            European competitiveness,” said
                                                                                                                                                                                                                                                                                            German Minister of Transport Wolf-
   ■ With a clever combination of             the block trains that were conceived    for customers in Canada, the United                                                                    from Japan to Chile. There, high up                2012, it will search for our roots within   gang Tiefensee, speaking in July as he
   sea containers and rail transport,         by Schenker and Intermodal rolled out   States and Mexico. “Our service for                                                                    in the Atacama Desert, the largest                 the expanses of the universe – and          took stock of Germany’s six-month
   Schenker Deutschland and DB Inter-         of the Kronotex facility in Heiligen-   Kronotex is proof that we can opti-                                                                    terrestrial telescope in the world will            perhaps run into some of our relatives.     presidency of the European Council.
   modal offer Kronotex a flexible and        grabe. The train was carrying 50 con-   mize hinterland traffic and combine                                                                                                                                                                   The new presidency wants to contin-
   efficient transportation solution for      tainers, each of them containing 20     it with global sea cargo,” explains                                                                                                                                                                   ue this policy. Tiefensee’s successor,
   exporting laminated flooring. At           tons of laminated flooring. The ship-   Michael Korn, deputy chairman of                                                                                                                                                                      Mário Lino Soares Correia, the Portu-
   the beginning of July, the first of        ment was processed in Bremerhaven       the board at Schenker Deutschland.                                                                                                                                                                    guese Minister for Public Works, Trans-
                                                                                                                                                                                                                                                                                            port and Communication, stated before
                                                                                                                                                                                                                                                                                            the EU Parliament in the summer
                                                                                                                                                                                                                                                                                            that the most important goal of his

   New Room to                                    Animated in Australia
                                                                                                                                                                                                                                                                                            presidency is to continue to develop
                                                                                                                                                                                                                                                                                            transportation policy and to provide

   grow in Benelux
                                                                                                                                                                                                                                                                                            sustainable mobility and interoper-
                                                                                                                                                                                                                                                                                            ability. But, unlike his predecessor,
                                                  ■ Mike and Sulley, Nemo, or Cowboy Woodie – the characters from Disney’s                                                                                                                                                                  Correia has other ideas too. Histori-
                      ■ Railion is signifi-       animation factory Pixar have been thrilling audiences around the world                                                                                                                                                                    cally a seafaring nation, Portugal
                        cantly increasing         for years. And, until the middle of October,                                                                                                                                                                                              wants to set its own priorities in
                        its cooperation           an exhibition in the Australian                                                                                                                                                                                                           maritime policy and shipping. Under
                        with the Belgian          Center                                                                                                                                                                                                                                    Portugal’s presidency, the Commit-
                        company B-Cargo.          for the                                                                                                                                                                                                                                   tee and Council of Ministers for Trans-
                        Carel Robbeson,           Moving                                                                                                                                                                                                                                    portation will have agreed on a plan of
                        longtime managing         Image                                                                                                                                                                                                                                     action for a uniform maritime policy
                        director of Railion       (ACMI) in                                                                                                                                                                                                                                 by the end of the year. Even the sub-
                        Netherlands, took         Melbourne shows                                                                                                                            All clear the closing doors: In New York, 26 subway lines cover a 407-kilometer network.       ject of ocean highways, an idea that has
   over this task on 1 July 2007. His job         how the creatures                                                                                                                                                                                                                         so far been put on the back burner,
   is to make sure that traffic is improved
   between Belgium, the Netherlands,
                                                  were created. On the
                                                  occasion of Pixar’s 20th                                                                                                                   Drilling a new line in New York                                                                could be back on the table, promises
                                                                                                                                                                                                                                                                                            Correia. But while the EU Commis-

                                                                                                                                 Photos: A. Labes, Railion NL, ACMI, (ESO)/ALMA, Heeb/laif
   and Germany. “I’m looking forward              birthday, the ACMI presents 500                                                                                                                                                                                                           sion recently stressed the importance
   to developing the Railion Group                original artworks from the animation                                                                                                       ■ Forty-five containers and seven                  “The seven individual pieces, which         of a European logistics industry – to be
   now that the Betuwe route has been             studios – drawings, sketches, concep-                                                                                                      oversize building components – these               had a total weight of 910 tons, had         obtained through common actions and
   opened. The railway offers huge op-            tual designs, sculptures and digital                                                                                                       were Schenker’s constructive contri-               to be loaded onto special trucks,”          sophisticated measures – Correia is
   portunities in the Benelux region,”            installations. On behalf of the ACMI,                                                                                                      bution to the new subway line that                 explains project logistics expert           understandably reluctant on this mat-
   explains Dr. Christoph Wolff, board            Schenker logistics experts transported                                                                                                     will ultimately connect Manhattan                  Diego Pozzati from the Schenker             ter. According to Correia, discussions
   member of Railion responsible for the          11 tons of material from Scotland and the                                                                                                  to Long Island. Logistics experts                  team. After the shipment arrived in         on a plan of action for European logis-
   International and Network Manage-              United States to Australia. “Schenker helped                                                                                               from Schenker in Italy transported                 New York, American Schenker col-            tics would be high on the agenda for
   ment division. After 15 years of con-          us tremendously with their know-how                                                                                                        the material – components of a                     leagues took over the material and          this year’s European Union Transport,
   struction, the Dutch put the Betuwe            and professionalism,” says ACMI                                                                                                            tunnel driller that is more than 30                brought it to the construction site.        Telecommunications and Energy Coun-
   route into operation in June 2007.             Director Tony Sweeney.                                                                                                                     meters long – from manufacturer                    The S.E.L.I. technicians and engi-          cil, which will take place at the end of
                                                                                                                                                                                             S.E.L.I. in Aprilia near Rome.                     neers then assembled the machine.           November.

10 | LOGISTICS                                                                                                                                                                                                                                                                                                         LOGISTICS | 11
How does it work?

   Recycling electronic waste                                                                                                                                                                                                                       4.THE ELECTRONIC APPLIANCE
                                                                                                                                                                                                                                                      REGISTRATION OFFICE (EAR)
                                                                                                                                                                                                                                                    The central registration office, on behalf of the
   A full 1.8 million tons of electronic waste need to be disposed of in                                                                                                                                                                            Federal Environmental Agency, makes sure that
                                                                                                                                                                                                                                                    manufacturers comply with electronic waste laws and
   Germany each year. Now a new European Union law regulates the                                                                                                                                                                                    recycling quotas. All manufacturers who sell electronic

   proper disposal of washing machines, televisions, and shavers.                                                                                                                                                                                   appliances must be registered here. EAR allocates the
                                                                                                                                                                                                                                                    number of appliances to be salvaged and penalizes
                                                                                                                                                                                                                                                    manufacturers who fail to comply with the regulations.

                                                                                                            Manufacturers disclose the
                                                                                                            number of appliances; the
                                                                                                            EAR decides later when they

   1.MANUFACTURERS
   Producers and importers of electronic
                                                                                                            must dispose of what.
                                                                                                                                                                                                                                           Valuable components
                                                                                                                                                                                                                                           from old appliances are
                                                                                                                                                                                                                                           reused in production.
   articles must register the volume of
   appliances they put on market at the                                                                                                     Collection facilities report full
   Electronic Appliance Registration Office                                                                                                 containers to the central registry.
   (EAR). Later they have to recycle exactly                                                                The recycling facility
   this volume and cover the costs incurred.                                                                reports the quota of recycled
   It’s expected that manufacturers will in-                                                                units to the manufacturer.
   directly pass on costs (estimate: € 350–
   500 million per year) to consumers.



                                                                                              The manufacturer has its
                                                                                              quota of old appliances
                                                                                              transported from the
        Manufacturers deliver                                                                 collection facility to the
        electronic appliances                                                                 recycling center.
        to dealers.


                                                                                                                                                                                                                                           5.RECYCLING FACILITY
                                                                                                                                                                                                                                           Old home appliances are disposed of and

                                                     2.CONSUMERS
                                                     Buyers and users are obliged to bring used
                                                                                                                                                      3.    COMMUNAL COLLECTION
                                                                                                                                                            FACILITY
                                                                                                                                                      1,500 collection facilities in Germany
                                                                                                                                                                                                                                           pre-processed. A certain amount of material has to
                                                                                                                                                                                                                                           be recycled – reused to manufacture new appliances
                                                                                                                                                                                                                                           (see below). Disposal facilities report this quota to the
                                                     and broken appliances to a communal collection                                                   accept home appliances free of charge                                                manufacturer and EAR.
                                                     facilityin their area.                                                                           and sort them into five groups: large
                                                                                                                                                      home appliances, cooling appliances,
                                                                                                                                                      information and communications devices
                                                                                                                                                      and entertainment electronics, gas dis-                                                   REUSE AND RECYCLING QUOTAS
                                                                                                                                                      charge lamps, and small home appliances.                                               In percent
                                                                                                                                                                                                                                             Large home appliances
                                                                                                                                                                                                                                             (refrigerators, washing                                 75                     5        20
                                                                                                                                                                                                                                             machines)
                                                                                                                                                                                                                                             Small home appliances
                                                                                                                                                                                                                                             (vacuum cleaners,                                 50                 20             30
                                                                                                                                                                                                                                             irons, scales)
                                                                                                       A consumer drives his old                                                  ELECTRONIC WASTE MATERIALS                                 Computer appliances
                                                                                                       electronic appliances to the                                                                                                          (laptops, printers,                                    65                 10            25
                                                                                                       collection facility.                                                  Glass 10                                  36 Ferrous            mobile phones)
                                                                                                                                                                             Electronics 4                                metals
                                                                                                                                                                                                                                             Entertainment
                                                                                                                                                                                                                                             electronics (radio, TV,                                65                 10            25




                                                                                                                                                                                                                                                                                                                                                       Graphics: KircherBurkhardt Infografik
                                                                                                                                                                              Other 10                                                       musical instruments)
                                                                                                                                                                              materials                   %                                  Toys, leisure & sports
                                                                                                                                                                                                                           Non-ferrous       equipment                                       50                   20            30
                                                                                                                                                                                                                                metals       (video-game consoles)
                                                                                                                                                                                                                                     7                                       0            20             40       60        80            100
                                               Consumers can no longer                                                                                                        Synthetics 19                          14 Other metals                Material reuse                     Energy reuse                     Disposal
                                                                                                                                                                             Source: National Association of Secondary Raw Materials and
                                               dispose of appliances at home.                                                                                                Disposal (BVSE)                                               Source: National Association of Secondary Raw Materials and Disposal




12 | LOGISTICS                                                                                                                                                                                                                                                                                                                        LOGISTICS | 13
Vision



                      REACHING FOR
                        THE SKY
                 Successfully combining tradition with the latest trends, making the
                   most of a key geographic location, Dubai is the El Dorado of the
                  21st century. For the booming desert emirate, the only way is up.
                                             [ Text ] Axel Novak




14 | LOGISTICS                                                                 LOGISTICS | 15
Vision




                                                                                                              Watchmen at the Dubai Tower: The world’s tallest building will be finished at the end of 2008, but already it is the stuff of legend.




                                                                                                        T
                                                                                                                            he whole country is one gigantic building                       Briton is head of Dubai Logistics City, an enormous freight
                                                                                                                            site. Anybody arriving in the emirate is con-                   transshipment center, which the emirate is hoping to com-
                                                                                                                            fronted by hundreds of building shells that                     plete by next year. “We’re the epicenter for traffic moving
                                                                                                                            point the way for aircraft and look like bony                   from Asia to Europe and the USA and back,” says Proffitt.
                                                                                                                            fingers in the desert. Dubai, the El Dorado of                  Dubai, he adds, is the ideal location to receive goods from
                                                                                                                            the 21st century, welcomes visitors with its                    Asia, America or Europe, to store, sort, and package items
                                                                                                              dust, endless traffic jams, scorching heat, and a plethora of                 and then dispatch them again – by truck, plane or ship.
                                                                                                              supremely confident visions.                                                  Dubai has good reason to boast about Logistics City. The lo-
                                                                                                                  Many people believe that this tiny territory on the                       gistics center covers 140 square kilometers – that’s as large
                                                                                                              Persian Gulf has been kissed by the gods. Having struck                       as the former German capital, Bonn. More than four million
                                                                                                              it rich with huge oil and gas reserves, the sheikhs are now                   square meters of space have already been rented. “We are
                                                                                                              turning the small emirate inside out and upside down. In be-                  operating a huge venture here,” says Proffitt.
                                                                                                              tween the hostile desert and the shopping malls and ritzy
   Marketing: Building
   projects such as the
                                                                                                              pleasure sites along the coast, the state is constructing air-                                            { Michael Proffitt }
                                                                                                              ports, seaports, container terminals, and industrial parks
   man-made “World”
   islands provide global
   talking points.
                                                                                                              as large as small European cities. Dubai is planning railroad
                                                                                                              lines, canals, and highways and is losing enormous sums in
                                                                                                                                                                                                                        »We are
                                                                                                              dubious projects only to invest even more cash in newer,
                                                                                                              larger and better schemes. And all this is going on despite
                                                                                                                                                                                                                        operating a
                                                                                                              the terrorist attacks of 11 September, the war in Iraq, and the
                                                                                                              conflict between Israel and its neighbors. Maybe Dubai, the                                               huge venture
                                                                                                              Switzerland of the Arab world, really has been kissed by the
                                                                                                              gods. Certainly it seems flushed with its economic success,                                               here.«
                                                           Photos: K. Jebreili/AP, REA/laif, Gamma/laif, KB
                                                                                                              intoxicated by its emergence from the Middle Ages directly
                                                                                                              into the 21st century.                                                        The emirate on the Persian Gulf is investing billions
                                                                                                                                                                                            of dollars to divert huge volumes of goods from Asia, Eu-
                                                                                                              Dubai is like the spider at the center of a web of flights span-              rope, Africa, and America. The motto is: Larger, Higher,

                                 FASTER, BIGGER, LOUDER!                                                      ning the globe. The local airline company, Emirates, flies
                                                                                                              to destinations in Europe and America, China, India, and
                                                                                                                                                                                            Further – and it is worth adding that everything here also
                                                                                                                                                                                            has to be more glamorous, expensive and magnificent. The

                                DUBAI WANTS ITS SUCCESS                                                       Japan several times a day. The whole of Asia is part of this
                                                                                                              small but classy emirate’s backyard. “More than two billion
                                                                                                                                                                                            Burj al Arab luxury hotel, for example, is the tallest hotel in
                                                                                                                                                                                            the world and the only one to have been awarded seven stars.

                            TO BE NOTICED BY THE WORLD.                                                       people can be reached in less than four hours’ flying time,”
                                                                                                              explains Michael Proffitt with a certain sense of pride. The
                                                                                                                                                                                            Its distinctive architecture, based on the shape of a dhow’s
                                                                                                                                                                                            filled sail, has long since become a trademark of the new >

16 | LOGISTICS                                                                                                                                                                                                                                        LOGISTICS | 17
Vision
                                                                                                                                                                                                                   DUBAI

                                                                                                                                                                                                                   The unstoppable
                                                                                                                                                                                                                   emirate                                                                                               Iraq

                                                                                                                                                                                                                   ■ Dubai is the United Arab Emirates’                                                                              Kuwait
                                                                                                                                                                                                                   second-strongest economy. The tiny
                                                                                                                                                                                                                   desert country has moved on from its                                                                                                                                                       Iran
                                                                                                                                                                                                                   dependence on oil and now serves                                                                                                             United
                                                                                                                                                                                                                                                                                                                                                                Arab Emirates
                                                                                                                                                                                                                   as a commerical hub both for                                                                                                                                    Sharjah
                                                                                                                                                                                                                   other countries in the region,                                                                          Saudi Arabia                                         Dubai
                                                                                                                                                                                                                                                                                                                                                                        Abu Dhabi
                                                                                                                                                                                                                   and for markets in Asia,
                                                                                                                                                                                                                   Europe and the Ameri-
                                                                                                                                                                                                                   cas, with increasing
                                                                                                                                                                                                                                               Eritrea
                                                                                                                                                                                                                   success.
                                                                                                                                                                                                                                                                                                                                                                                Sultanat Oman
                                                                                                                                                                                                                                                                                                Yemen
                                                                                                                                                                                                                                           Ethiopia




                                                                                                                                                                                                                           Umm a-Quaiwan
                                                                                                                                                                                                                                   Ajman
                                                                                                                                                                                                                                                          Ras al-Khaiman
                                                                                                                                                                                                                                 Dubai
                                                                                                                                                                                                                                                        Fujairah                                                  Somalia
                                                                                                                                                                                                                                                          Sharjah
   Tradition and modernity: Dhows in Dubai Creek, which today passes through the heart of a thoroughly modern metropolis.
                                                                                                                                                                                                                                   Abu Dhabi




   DUBAI LENDS GLITTER AND GLOSS                                                                                                                                                                                      TOP IMPORTERS                                                 EXPORT MARKETS                                               OIL & GAS EXPORTS 2004
                                                                                                                                                                                                                                                                                                                                            in billion                                         39.3

   TO THE EMIRATES’ ECONOMIC ASCENT.                                                                                                                                                                                                             12.0 China

                                                                                                                                                                                                                                                          9.6 India
                                                                                                                                                                                                                                                                                                                  23.6 Japan                40

                                                                                                                                                                                                                                                                                                                                            30
                                                                                                                                                                                                                                                                                                                                                                                Abu Dhabi

                                                                                                                                                                                                                     other 40.3                                                   other 45.9
   desert emirate that is reaching for the sky. To that end, the          end. Local people are proud to say that it represents Dubai’s
   world’s tallest building is currently under construction a             motto: Making the impossible possible.
                                                                                                                                                                                                                                           %               9.3 USA                                       %             9.8 Korea
                                                                                                                                                                                                                                                                                                                                            20

                                                                                                                                                                                                                                                                                                                                                                            Dubai and
   few kilometers inland – the Dubai Tower, or Burj Dubai in                                                                                                                                                         France 4.2
                                                                                                                                                                                                                                                                                                                                            10                                                  2.5
                                                                                                                                                                                                                                                         8.4 Great Britain                                           6.7 Thailand                                           other Emirates
   Arabic. The construction, which deliberately evokes the                Dubai is only one of seven emirates that joined together                                                                                                                    5.8 Germany                Australia 2.6                    5.2 India                 0
   famous Tower of Babel, has been rising further and further             to become a loosely federated state almost 50 years ago,                                                                                   Arab countries 4.7         5.7 Japan                                   Iran 2.9         3.3 Pakistan                        2000         2001      2002          2003     2004
   above the skyline in four- or five-meter increments each               the United Arab Emirates (UAE). Western experts say that
   day. The architects from Chicago and the owner of the build-           the structure of the state is awkward and describe it as a                                                                                  ECONOMIC                                                                                  POPULATION
   ing are refusing to say just how tall the Dubai Tower will be          patriarchal, presidential system using traditional means
                                                                                                                                                                                                                    GDP 2004 in billion UAE Dirham                                                           2004 in thousands
   when it has finally been completed.                                    of communication.                                                                                                                                                                                                                      1,678
                                                                                                                                                                                                                       215.7
                                                                              But Dubai has retained a great deal of autonomy within
                                                                                                                                                                                                                                                                                                                             1,306
                            { Rashed Al Ansari }                          the UAE. With all its glitter and gloss it has managed to far                                                                                                          (1 UAE Dirham = US $ 0.27)
                                                                          outstrip the larger and more powerful emirate, Abu Dhabi,
                            »There’s an
                                                                                                                                                                                                                                   118.4
                                                                                                                                                                                                                                                                                                                                        678
                                                                                                                                          Photos: Peter Bialobrzeski/laif Graphics: Kircher Burkhardt Infografik


                                                                          and has galloped ahead of the other members of the UAE.
                                                                          As one local businessman put it: “Abu Dhabi is richer and                                                                                                            30.4                                                                                                     258

                            enormous
                                                                                                                                                                                                                                                                                                                                                                                  205           127
                                                                                                                                                                                                                                                           5.2          1.7            7.8       4.8                                                                   68
                                                                          a more powerful economic force. But nobody would know
                                                                          about Abu Dhabi without Dubai!”                                                                                                            Abu Dhabi     Dubai       Sharja     Ajman       Uman al     Ras al-     Fujairah         Abu Dhabi     Dubai     Sharja       Ajman            Uman al     Ras al-      Fujairah

                            demand for
                                                                                                                                                                                                                                                                      Qaiwan     Khaimah                                                                             Qaiwan     Khaimah
                                                                              The emirate was just a barren strip of land on the edge of
                                                                          the world’s largest desert until just a few decades ago. There
                                                                                                                                                                                                                      DUBAI OUTGOINGS                                                                           DUBAI INCOME
                            everything.«                                  were little more than 200,000 people inhabiting a region
                                                                          measuring the size of the Ruhr area in Germany – and most                                                                                 in million UAE Dirham
                                                                                                                                                                                                                   5,000
                                                                                                                                                                                                                                                                                                             in million UAE Dirham
                                                                                                                                                                                                                                                                                                             5,000
                                                                                                                                                                                                                                                                                                                                                                                  Oil & Gas           5,902

                                                                          of it was covered by barren sand. However, the Arabs had                                                                                                                                                      Salaries 3,882
                                                                                                                                                                                                                                                                                                                                                                                       Tax on
   The project manager admitted in an interview recently that             been plying the waters as far as China for centuries in their                                                                            4,000                                                                                     4,000                                                                     foreign 2,897
   the building would be at least seven hundred meters tall.              dhows, traditional cargo boats, and they established trade                                                                               3,000
                                                                                                                                                                                                                                                                                         Products &
                                                                                                                                                                                                                                                                                                    2,495    3,000
                                                                                                                                                                                                                                                                                                                                                                                       banks
                                                                                                                                                                                                                                                                                         services
   But subcontractors are talking of eight or nine hundred me-            routes between Asia and Africa long before the Europeans                                                                                                                                                                                                                                                                    1,937
                                                                                                                                                                                                                   2,000                                                                                     2,000       Public companies
   ters. Tour guides claim that the Dubai Tower will top one              dared to pass around Cape Horn or discovered the sea route                                                                                                                                            Development 2,185
                                                                                                                                                                                                                   1,000                                                                                     1,000                                                                              420
   thousand meters and thus overshadow the skyscrapers be-                to India. The discovery of oil at the start of the last century                                                                                                                                       projects                                                                                         Income tax
   ing built by the Asian tiger states for a long time to come.           changed the face of the state permanently. Sheikh Rashid                                                                                     0                                                                                         0
                                                                                                                                                                                                                                 2001          2002           2003              2004             2005                     2001         2002               2003                 2004            2005
   Before it has even been completed, the tower is already a leg-         bin Saeed al Maktoum issued the first licenses to foreign >
                                                                                                                                                                                                                                                                                                                                                                                        Source: IWF, bfai

18 | LOGISTICS                                                                                                                                                                                                                                                                                                                                                                                LOGISTICS | 19
Vision
                                                                                             { Oliver Parche }

   SCHENKER                                                                                  »Companies
   Dubai to the USA and                                                                      are served
   back in two days
   New airfreight service is directed at customers                                           everything
   looking for a reasonably priced logistics solution.
                                                                                             on a plate.«
   ■ Airfreight sets trends: Ever since the start of June 2007,
   every Saturday at 11:30pm local time, an Emirates SkyCargo
   plane bearing 110 metric tons of freight has been leaving          oil companies in 1966. Experts are uncertain how long the
   Dubai International Airport bound for Germany. Schenker            reserves will last. More than four billion barrels of black
   staff handle the freight destined for Europe six hours later       gold were found beneath the desert and off the coast. Then
   at Frankfurt’s Hahn airport. Then the plane is loaded with         there are also the extensive natural gas reserves in the re-
   more freight for the US market. Eight hours later, the cargo       gion. Dubai is involved in exploiting these too, but the min-
   plane lands in Toledo in the United States.                        eral resources no longer explain the country’s wealth. “The
                                                                      oil is limited,” said Sheikh Rashid bin Saeed 20 years ago,
   ■ The largest and most efficient hub for the joint                 and insisted that industrial plants, ports, and tourist sights
   Schenker/BAX operations in the American market is located          be built. Today oil and gas account for less than three per-
   in Toledo, Ohio. From this logistics center, consignments are      cent of Dubai’s revenues.
   then fed into the US distribution network. On its return flight        Although the locals were skeptical in the early days,
   from the United States, the plane arrives back at Hahn in          Sheikh bin Saeed issued orders for a new port to be con-
   Germany in the early hours of Monday morning, and                  structed 30 kilometers south of the capital. Ships take two
   finally returns to Dubai by the afternoon.                         weeks to reach Europe from the Jebel Ali port, and the jour-                                                             Freight rate: The huge Jebel Ali port is rising in world rankings for the number of containers handled; this year it will overtake Hamburg.
                                                                      ney to the East Coast of the United States takes just a week
   ■ The new airfreight service provided by Deutsche Bahn             longer. Japan is twenty days away in the other direction, and
   subsidiary Schenker is primarily tailored to meet the needs        southern Asia can be reached in little more than a week. To-
   of customers in the electronics, automotive, mechanical
   engineering, and clothing sectors.
                                                                      day the port is the world’s most advanced, brimming with
                                                                      self-confidence after being acknowledged as “the largest                                                                 DUBAI’S RICHES DRAW CHEAP LABOR
   ■ The new flight is closely linked to the intermodal logistics
   services provided by Schenker on the main routes from Asia
                                                                      man-made harbour in the world.” The Jebel Ali port handled
                                                                      almost nine million standard container units in 2006.
                                                                          The emirate imported and exported goods worth
                                                                                                                                                                                               FROM THE POOR COUNTRIES OF SOUTH ASIA.
   to Europe. SCHENKERskybridge combines the cheap sea                $142.2 billion last year. However, goods destined for the lo-                                                            from overseas. India, Pakistan, and Bangladesh, in particu-                  Parche believes that the boom in Dubai can be attributed
   freight costs from Asia via Dubai with the speed of air freight.   cal market account for only a quarter of this figure – Dubai                                                             lar have sent hordes of workers to the desert city. They build               to three factors. Two of them are its location on the Gulf –
   The transit period is reduced by 50 percent in comparison          has become the world’s third-largest re-exporter after Hong                                                              the skyscrapers, ports, airports, and industrial parks; they                 huge flows of goods from Asia have moved through here for
   with the exclusively sea freight option, and costs can be up       Kong and Singapore. According to its own figures, the state                                                              serve in hotels and drive the taxis. Despite the high average                centuries – and the wealth created by oil. But the most im-
   to 50 percent lower than for air freight alone. Schenker also      is now investing some $3.5 billion to further expand the                                                                 standard of living, these people earn poor wages, but are still              portant in his view is the third: “Wise leaders with visions
   provides a similar service from Asia to Vancouver for the          port. The aim is to have eight new terminals handling up to                                                              better off than in their home countries. The average annual                  of how Dubai can use its short-term wealth for ensuing gen-
   American market.                                                   50 million containers by the year 2030. By way of compari-                                                               income in Dubai was some $28,000 in 2005 – the figure for                    erations.” Parche says these leaders have achieved some-
                                                                      son, this would be one and a half times as many containers as                                                            Germany was $45,000. But wealth in Dubai is not distrib-                     thing that will stand the test of time even when the oil final-
   www.schenker.com                                                   Europe’s two largest ports, Rotterdam and Hamburg, han-                                                                  uted equally. The World Health Report states there are                       ly stops flowing. Sheikh Rashid bin Saeed, who catapulted
                                                                      dled together last year. Dubai is set to exceed the number of                                                            53,000 millionaires (US$) in Dubai – a figure unsurpassed                    the emirate into the modern age with his visionary powers,
                                                                      containers handled by Hamburg this year. With a growth                                                                   anywhere else in the world. But the assembly and building                    is today almost worshipped as a saint.
                                                                      rate of less than ten percent, the time-honored northern                                                                 workers do not see much of this wealth. Their monthly wag-                       It is a fact that Dubai is not simply experiencing a boom
                                                                      German city port cannot keep up with the forecast growth                                                                 es start at the equivalent of €150, and they not only need to                because the sheikh’s billions are being pumped into expan-
                                                                      figure of 15 percent in the Persian Gulf.                                                                                survive, but also support their families back home and make                  sion projects. The emirate has now become a key element
                                                                                                                                                                                               some provision for old age.                                                  in the networks of the global economy. The amount of com-
                                                                      What dictators in other states have failed to achieve in                                                                                                                                              mercial goods handled here is rising rapidly, Dubai has an
                                                                                                                                       Photos: DB AG, JD Dallet/arabianEye/Agentur Focus, KB




                                                                      decades, Dubai is managing to pull off in a few short years                                                              What is the key to Dubai’s success? It may be 45 degrees                     excellent geographic location, and there is the political will
                                                                      despite its rigid and traditional tribal structures. And reli-                                                           centigrade outside, but it is pleasantly cool in the fully air-              to supply what international companies require quickly and
                                                                      gious peace and economic stability are part of the package                                                               conditioned offices of the German Industry and Commerce                      without red tape in order to achieve success.
                                                                      too. Religion does not play a major role in the United Arab                                                              Organization (AHK). Oliver Parche is deputy delegate with                        Dubai has now set up almost twenty free trade zones.
                                                                      Emirates, unlike in many other Arab and Islamic countries.                                                               responsibility for economic ties between Germany and the                     These are places where companies can develop, do business,
                                                                      Economic matters are resolved by secular courts, and the                                                                 UAE. The 42-year-old business economist only has to look                     cooperate, and compete. Some 6,000 foreign companies
                                                                      only laws subject to the Islamic sharia system are those gov-                                                            out from his window to see evidence of the emirate’s up-                     have set up business here, and 125 of them are among the
                                                                      erning family and inheritance matters.                                                                                   turn. The booms of the cranes and the buckets of the huge                    500 largest corporations in the world. The most promi-
                                                                         But society in Dubai does face a completely different                                                                 excavators appear to get closer and closer to the tinted glass               nent example is the American energy giant, Halliburton. It
   Westward bound: At Dubai airport the Schenker plane is loaded      problem. Local Dubaians have now become a tiny minority.                                                                 of his office on the second floor of a smart office building in              recently announced that it was moving its headquarters
   with 110 metric tons of freight destined for Europe and the USA.   Some 92 percent of the population in the emirate now come                                                                the old city in Dubai.                                                       from Houston, Texas, to Dubai.                                  >

20 | LOGISTICS                                                                                                                                                                                                                                                                                                                               LOGISTICS | 21
Vision                                                                                                                                                                                                                                                                                   Interview


                                                                                                    “It helps
   Free trade zones provide many advantages for entrepre-                                                                                                                                                                              In conversation:
   neurs. Here, they do not pay any taxes or customs duties.                                                                                                                                                                           Dr. Thomas C. Lieb in his office
   Profits do not have to be reinvested in the country, as is the                                                                                                                                                                      at Schenker’s Essen HQ.
   case elsewhere. And in stark contrast to conventions outside




                                                                                                    to be on
   the free trade zone, foreign investors remain the sole owners
   of their companies. This is a crucial advantage when it comes
   to margins and market shares. In addition, the authorities in
   Dubai relieve companies of a number of tasks which would
   otherwise cost them time, money, and effort. Labor agen-




                                                                                                    the spot”
   cies look for personnel, and representatives of the authori-
   ties resolve legal issues on the spot. Individual residential
   districts – indeed, whole cities – are constructed in record
   time so that investors and their members of staff from all                                                                                                                                                                          direct responsibility. We are now able to employ and train
   over the world will find everything they need when they                                                                                                                                                                             our staff directly.
   arrive: from children’s nurseries to opulent shopping malls.
   As Parche puts it: “Companies are served everything here
   on a golden platter.”                                                                            Schenker CEO Dr. Thomas C.                                                                                                         Why then Dubai? Are there not other attractive locations in the
                                                                                                                                                                                                                                       region, too?

   The real estate boom is unique. Hundreds of new skyscrap-
                                                                                                    Lieb explains how his company                                                                                                      The decision to establish a presence in Dubai is sending a
                                                                                                                                                                                                                                       clear signal. We are confident that Dubai will continue to
   ers, luxury villas, and apartment buildings are being con-
   structed for rich investors arriving from Europe or Asia or
                                                                                                    is expanding in Dubai and the                                                                                                      maintain and extend its position in the global exchange
                                                                                                                                                                                                                                       of goods, in the region, and not least as a market in its own
   fleeing neighboring countries that are affected by slumps.
   The huge “palm” projects alone, artificial islands shaped
                                                                                                    Middle East.                                                                                                                       right. But the same can be said of the whole region. So we
                                                                                                                                                                                                                                       will gradually and deliberately extend our presence in oth-
   like palm trees that have been created off Dubai’s coral reefs                                   [ Interview ] Axel Novak   [ Photo ] Tom Rathmann                                                                                  er places too. We have set up a management company in
   as super-luxury residential developments, reflect the opti-                                                                                                                                                                         Dubai. This means that the expansion of our network in the
   mism of the building owners and consume huge amounts                                                                                                                                                                                region ends at the state borders of this emirate. We are al-
   of materials. “There is a huge demand for everything,” says                                      Dr. Lieb, international logistics corporations are increasingly     Toledo flight to our SCHENKERskybridge product. But            ready present in Saudi Arabia with our own staff. Qatar will
   Rashed Al Ansari. “It’s a bit like a sponge!” Al Ansari is the                                   focusing their operations on the United Arab Emirates. How          we are also expanding our entire airfreight network. We        be the next step.
   head of Dubai Industrial City, a 50 million square meter                                         do you explain the circumstances by which a small emirate           at Schenker have planned 750 flights between Europe, the
   industrial park in the west of the emirate. Dubai is investing                                   called Dubai is able to attract so many investors from all over     United States, and Asia this year. We can provide 150 fur-     What role does the integration of BAX in Schenker play in your
   $5 billion in the project. Some 350 companies will then be                                       the world so quickly?                                               ther flights over the Pacific through our subsidiary Star-     commitment to the United Arab Emirates?
   able to deliver fresh supplies to the rapidly growing popula-                                    This emirate is one of the most fascinating growth markets          Trans. So we are very competitive on this route, which is      Both the new joint venture and the excellent cooperation
   tion from 2015 onwards.                                                                          for global logistics. Thanks to its favorable geographic loca-      one of the world’s fastest growing markets. We now intend      with the previous BAX Global partner, Al Naboodah, give
      Visions such as these arouse the interest of companies                                        tion, Dubai has managed to establish itself not just as a hub       to continue this success story with the Dubai link.            us crucial advantages here. We can build on the existing
   abroad. Parche and his 23 colleagues at the AHK receive                                          in the region, but it is increasingly taking on the role of a hub                                                                  expertise and organize the new and old business from
   hundreds of inquiries from corporations and associations.                                        for goods traffic between East and West. The Jebel Ali port,        What are the prospects for sea freight?                        Schenker and BAX in our global network. Both our cus-
   Many entrepreneurs are skeptical. Will the boom last? Is                                         for example, is being expanded to handle 15 million stan-           We shipped about 1.2 million standard containers in            tomers and we as a company benefit from the BAX integra-
   there any substance behind what the emirates are build-                                          dard containers per annum. The new airport is set to handle         2006. We are number three worldwide in sea freight and         tion. Our new charter service and our domestic American
   ing? Could this create concrete business opportunities? >                                        12 million metric tons of air freight every year. These are         can provide a wide array of services, thanks to our global     network provide an outstanding opportunity to ship goods
                                                                                                    enormous figures! We are taking account of this by further          network. International supply chains are becoming lon-         quickly from the Middle East to any place in the USA.
                                                                                                    expanding our strategic services in the Middle East. So our         ger and longer, so we are now interlinking overland, sea
                                                                                                    new airfreight service, the regular direct flight from Dubai        and air traffic. Our SCHENKERskybridge service, for            Are some customers asking you to strengthen your commitment
                                                                                                    to Toledo, Ohio in the United States via Hahn, is just the          example, not only gives customers the lower costs that         to Dubai?
                                                                                                    first step. But we are the first forwarder to link the US mar-      are associated with sea freight and the faster shipping        Our customers have warmly welcomed the announcement
                                                                                                    ket directly with the Middle East.                                  times associated with air freight. We are also holding talks   that we plan to boost our services in the Middle East. We
                                                                                                                                                                        with a number of shipping companies, so that we have           believe that there is plenty of scope for expansion in this
                                                                                                    What are your plans for the next two years?                         sufficient capacity available with these preferred carriers,   region. Schenker will seize these opportunities as the need
                                                                                                    We do not merely want to expand our position as a global            even at peak periods.                                          arises, provided that it leads to sustainable growth.
                                                                                                    player in the transport and logistics sector, but also to
                                                                                                    reinforce our market leadership in European overland traf-          Some logistics service companies have been operating in
                                                                                                    fic, become more competitive in air and sea freight, and            the UAE for some time. Why has Schenker waited until now
                                                                                                    move up in the global standings for contract logistics. The         before acting?                                                     BIOGRAPHY
                                                                                                    Middle East and Dubai as a hub naturally play an important
                                                                                                    role in achieving all these goals.
                                                                                                                                                                        We have been cooperating with a partner in Dubai for at
                                                                                                                                                                        least 20 years, so we were able to guarantee that our cus-         Dr. Thomas C. Lieb
                                                                        Photo: Daniel Biskup/laif




                                                                                                                                                                        tomers had access to the normal Schenker service here too.
                                                                                                    Are Schenker’s services restricted to the airfreight business?      Now we have started a joint venture arrangement with our           ■ Commitment: A business economist with a PhD,
                                                                                                    Not at all. Dubai has made a name for itself as a transship-        partner and have expanded our presence in the emirate,             Lieb has worked for Schenker since 1989. Born in Reutlin-
                                                                                                    ment point for both air and sea traffic. Our customers can also     primarily through our regional head office. So we can now          gen in 1958, he now lives with his family in Düsseldorf.
                                                                                                    benefit from this development. We can offer the best service        play an active role. We can now see more opportunities to          A board member since 2001, Lieb is responsible for the
   Glitter of the Gulf: The view from the restaurant of Dubai’s World                               for shipping goods from Asia to the United States and               expand our business at the Dubai site and in the region.           Schenker Group’s global air and sea freight activities.
   Trade Center; in the background, the twin Emirates Towers.                                       Europe quickly and cheaply by linking the Dubai/Hahn/               Things are much easier if you are on the spot and can take

22 | LOGISTICS                                                                                                                                                                                                                                                                                 LOGISTICS | 23
Vision
                                                                                                { Florian-Ittho Wenski }

   RAILROADS                                                                                    »The market
   Making new tracks across                                                                     for logistics
   the desert sands
   With the help of DB International, Saudi Arabia and                                          products is
   Dubai look at building or extending railroads.
                                                                                                mature.«
   ■ There are still no railroads in the United Arab Emirates,
   but that is likely to change in the near future. A consortium
   involving the Deutsche Bahn consultancy subsidiary,                   These are the questions put to him by medium-sized compa-
   DB International, has been testing the feasibility of a 750-          nies, Parche explains. Some inquiries come from unreliable
   kilometer freight route through the UAE. It could link Abu            sources or businesses that are in trouble. “They think that
   Dhabi on the west coast with easterly emirates like Fujairah          the sheikh is here in the desert with a sack of gold brimming
   on the Gulf of Oman. Goods could be transported directly to           to overflowing.” Parche is amazed by the naivety of many
   the Gulf without having to pass through the Strait of Hormuz.         entrepreneurs. “We then make it very clear that this is a
   “A freight line is technically feasible and would provide a           totally unrealistic view. Companies need to be here for two
   huge leap forward for the Emirates in handling the flows of           years and discover exactly how business operates.”
   goods,” says Peter Josef Haaks confidently. He is responsible            Outside the free trade zones, business in Dubai can only
   for the Middle East region at DB International.                       be conducted through local partners, as is the case in many
                                                                         Arab countries. Foreign investors conducting business out-
   ■ DB International is currently gathering a great deal of             side the free trade zones need what is known as a national
   experience on the Arabian peninsula. Saudi Arabia is one              sponsor, who will take a share of the turnover or profits.
   example. The kingdom currently has two railroad lines and is          Foreigners are allowed to hold only a 49 percent share of                                                            Asian hoard: A worker unloads boxes from China; Dubai has become a principal point of transshipment for goods from all over Asia.
   expanding the network. DB International is now supporting a           companies in Dubai. While active partners are somewhat
   Saudi building company as it constructs a new 550-kilometer           rare and high expectations on the part of European or Amer-
   railroad line. This section is part of a freight line which will be   ican corporations are often not fulfilled, dormant partners
   more than 2,000 kilometers long and link the major bauxite            have two advantages: Their legal status is purchased, and in
   and phosphate mines in the country’s northeast with the
   capital Riyadh and the Persian Gulf.
                                                                         other respects they are not involved in the active business.
                                                                         “Partnerships are a bit like a marriage,” explains Parche, “in                                                       ARABS ARE UNITED IN THEIR LOVE
   ■ DB International is also involved in the city transit
   system in Abu Dhabi, the capital of the UAE. The city districts
                                                                         essence they are designed for eternity.” In plain language
                                                                         this means that if an investor wishes to separate from his
                                                                         partner, the latter may claim damages in court – and these
                                                                                                                                                                                              FOR THE WEST’S MOST EXPENSIVE CARS.
   at the future resort site at Al Raha Beach are to be linked by        could total several years’ commission.                                                                               and move faster and be larger – and they all returned home                East. DaimlerChrysler has been operating in Dubai since
   a railroad line that will run 13 kilometers. “A great deal of            So the search for a partner is one of the most time-                                                              satisfied. “Eighty-six percent of exhibitors want to come                 2001. Around 63,000 parts are stored in a plain building
   painstaking work is necessary to coordinate the various               consuming activities before setting up business in Dubai,                                                            back next time,” says Wenski.                                             measuring 23,000 square meters. The 17 members of staff
   requirements of all those involved,” Haaks explains.                  according to Parche. “It’s important to take time to find the                                                            The exhibitors are not just the big names in the sector,              handle 2,500 items every day – very little compared with
   DB International has been carrying out planning work at               right partner.” He adds that the German Industry and Com-                                                            but also medium-sized companies in search of business con-                the large spare parts stores in Germany, which handle 16
   the site since April 2006. The double track route will involve        merce Organization can help companies to establish contact                                                           tacts in the Middle East. “I’ve been to Dubai on a few occa-              times this figure. But the market for luxury cars is grow-
   14 modern stops with exclusive equipment, three termini,              with the large clans and families. “Many Arab families also                                                          sions and will probably come here a few more times until                  ing rapidly. “Many families have seven or eight cars – that
   and a branch line to the depot.                                       have a small sales tray, which people often do not under-                                                            something really clicks,” says Achim Aberle from Aberle                   is quite normal,” says Hirsch. The German luxury brand
                                                                         stand. They build a highway, sell shampoo, have a bank,                                                              Steuerungstechnik. The company was searching for an in-                   sells well in the Emirates. While the smaller E class is a
                                                                         and run a hotel.”                                                                                                    dustrial partner at the fair. Based in the southern German                popular second car for rich wives, the heads of families drive
                                                                                                                                                                                              village of Leingarten, Aberle Steuerungstechnik provides                  around either in an S class or the G class sports utility ve-
                                                                         Fans hiss, wheels clatter, sample packages roar along con-                                                           software solutions that range from warehouse adminis-                     hicle. Only real connoisseurs, who know the region well,
                                                                         veyor belts, and roller shutter doors open and close with                                                            tration to material flows and even visualization systems.                 are aware of the minor distinctions. While most Mercedes
                                                                         their chains rattling in Hall 8 at Dubai’s World Trade Cen-                                                          Ever since Dubai’s airport installed an Aberle system, the                vehicles on the road in Dubai are S-350 models, neighboring
                                                                         ter. This industrial noise backdrop is standard for the                                                              Germans have sensed that new orders might be on the way                   Abu Dhabi prefers the larger S-500s.
                                                                                                                                          Photos: DB AG, M. Henley/Panos Pictures/VISUM, KB




                                                                         Materials Handling & Logistics Middle East trade fair.                                                               from this part of the world. But the medium-sized company                    Many procedures became simpler for the logistics ex-
                                                                         Held in the UAE for the fourth time in June 2007, it is re-                                                          is still reluctant to set up a branch in Dubai. It costs a great          perts at DaimlerChrysler after the company set up a branch
                                                                         nowned for being the most important fair for everything                                                              deal of money to send a representative to the Emirates for                in the Emirates. Urgently needed parts can be flown in
                                                                         related to conveying technology in the region. “We assume                                                            one or two years. Wages and the cost of living are enormous               and the “vehicle off road” procedure further accelerates
                                                                         that the market for this fair and the exhibitors’ products                                                           for European representatives operating abroad.                            the service provided. Parts can be made available or flown
                                                                         is mature,” says Florian-Ittho Wenski, who organized the                                                                                                                                       in from Germany for particularly important customers
                                                                         meeting in Dubai for the Messe Frankfurt organization.                                                               Other companies have been benefiting from having a local                  for whom price is not an issue. This happens two or three
                                                                         “The demand for machines, software, and products related                                                             base for some time. “We decided to come to Dubai because                  times a week. It takes 30 days to order parts from the
                                                                         to logistics is huge here.” Some 145 corporations from more                                                          we were able to reduce delivery times for spare parts from                DaimlerChrysler central stores in Germersheim, ship them
   The latest resort: Building work at Al Raha Beach in Abu Dhabi.       than 20 countries provided the multi-machine sound back-                                                             42 days to just 4 days,” says Jürgen Hirsch, who manages                  to Bremerhaven, load them on board a vessel, and move
   A 13km rail line will later connect the resort’s various quarters.    drop and expertise to support Dubai’s yearning to go further                                                         the DaimlerChrysler Regional Logistics Center Middle                      them through the Suez Canal to Dubai.                          >

24 | LOGISTICS                                                                                                                                                                                                                                                                                                                    LOGISTICS | 25
                                                                                                                                                                                                                                                                                                                                                   Vision

                                                                                                                                                                                                                                                                                        FUTURE CONCERNS

                                                                                                                                                                                                                                                                                        Unemployed in a land of
                                                                                                                                                                                                                                                                                        growth and luxury
                                                                                                                                                                                                                                                                                        Though surrounded by wealth, many Emiratis are
                                                                                                                                                                                                                                                                                        out of work. A new program aims to help.

                                                                                                                                                                                                                                                                                        ■ The United Arab Emirates (UAE) is developing into
                                                                                                                                                                                                                                                                                        the most significant business center in the Middle East.
                                                                                                                                                                                                                                                                                        Hundreds of thousands of foreign workers are streaming
                                                                                                                                                                                                                                                                                        to the Persian Gulf. But locals in Dubai are discovering that
                                                                                                                                                                                                                                                                                        wealth does not guarantee them jobs.

                                                                                                                                                                                                                                                                                        ■ Fifty percent of the local population is younger than 18.
                                                                                                                                                                                                                                                                                        Despite the rapid economic boom, around 36,000 Emiratis
                                                                                                                                                                                                                                                                                        are unemployed – which represents about 15 percent of
                                                                                                                                                                                                                                                                                        the potential workforce. More than half of the jobless are
                                                                                                                                                                                                                                                                                        aged between 16 and 24.

                                                                                                                                                                                                                                                                                        ■ The UAE has created 600,000 jobs in private enterprise
                                                                                                                                                                                                                                                                                        over the past few years, but most of the positions have been
                                                                                                                                                                                                                                                                                        filled by Europeans. Because of this, employers are now
                                                                                                                                                                                                                                                                                        obliged to employ a certain number of local people.

                                                                                                                                                                                                                                                                                        ■ A recent study by the National Bank of Dubai discovered
                                                                                                                                                                                                                                                                                        that many young Emiratis set up businesses only to fail be-
   Giant snowglobe: Well-to-do citizens ski or go bobsledding in the artificial winterland at the Mall of the Emirates.                                                                                                Mosque in Dubai: Islam is present but not all-pervasive.         cause competitors have better training and more experience.
                                                                                                                                                                                                                                                                                        The study called for a far more active program to teach young
                                                                                                                                                                                                                                                                                        Emiratis the principles of running their own businesses.


   HIGH WAGES AND TOO FEW SPECIALISTS                                                                                                                                                                                  community is very well organized,” says Parche. But then
                                                                                                                                                                                                                       he admits: “The British and French are far superior at
                                                                                                                                                                                                                                                                                        ■ Sheikh Mohammed, Dubai’s head of government and
                                                                                                                                                                                                                                                                                        Vice President of the UAE, started the Emirates Nationals

   CLOUD THE PICTURE OF THIS WONDERLAND.
                                                                                                                                                                                                                       establishing networks.”                                          Development Program two years ago to integrate young
                                                                                                                                                                                                                          But it would be wrong to suggest that everything is easy      Emiratis in the private sector workforce. “Our young people
                                                                                                                                                                                                                       sailing. There is already a shortage of specialist personnel     have proved their worth in the public sector,” said Sheikh
                                                                                                                                                                                                                       in some sectors. Even labor agencies focusing on particular      Mohammed in his speech to mark the start of the program,
   Trucks then transport the parts to neighboring states.                       Hirsch adds, “There is another advantage here – we work                                                                                work sectors and licensed for this purpose are searching for     “I am confident they will also succeed in the private sector.”
   It is not worthwhile to use air freight to ship parts to Saudi               six days a week.” Friday is the day off in Islamic regions, cor-                                                                       personnel around the globe. But it is a different picture with
   Arabia, which is just 100 kilometers away. “Customs for-                     responding to Sundays in Christian countries. Europeans                                                                                manual laborers – it is much easier to find new blood here. A
   malities at the airport take so long that there is no time ad-               working five-day weeks can do business with somewhere                                                                                  warehouse worker’s monthly wage is around 1,500 dirham,
   vantage,” says Hirsch. Almost every vehicle manufacturer                     like Dubai for only four of those days, but people working                                                                             the equivalent of about €300, and employers tradition-
                                                                                locally are often at the office every day except Friday.                                                                               ally provide workers with food, lodging, and clothing. But
                              { Jürgen Hirsch }                                                                                                                                                                        competition is tough. Life in Dubai is expensive, so work-
                                                                                This working rhythm is only one of the many adjustments                                                                                ers are quick to switch employers for slightly higher wages.
                              »Many Dubai                                       that Europeans have to make if they come to what many                                                                                  The same is true of white-collar workers, who earn be-
                                                                                                                                                   Photos: P. Bialobrzeski/laif, E. Rodtmann/laif, M. Sasse/laif, KB




                                                                                call their dream destination, Dubai. “I don’t think much of                                                                            tween €2,500 and €2,700 a month. Enormous increases
                              families own                                      intercultural seminars to prepare people for the move,” says
                                                                                Parche, who has lived in Dubai for two years. Prior to that
                                                                                                                                                                                                                       in rents and rising education costs are driving inflation
                                                                                                                                                                                                                       higher. “Many people are just looking for an opportunity

                              seven or                                          he lived in Saudi Arabia for three and a half years and was
                                                                                responsible for the AHK there. He says it is more impor-
                                                                                                                                                                                                                       to change jobs quickly in order to earn more money,” says
                                                                                                                                                                                                                       one warehouse manager. “Some staff can easily double their

                              eight cars.«                                      tant to practice restraint and observe things from a distance
                                                                                before launching talks with local business people. “If people
                                                                                                                                                                                                                       salary by moving to another company!” Many companies
                                                                                                                                                                                                                       are setting up business in Dubai, so specialist personnel can
                                                                                are not open and inquisitive at home, the best seminar in                                                                              take their pick of the best jobs.
   has concentrated its dealership and workshop network                         the world is not going to help them.”                                                                                                     “Personnel costs are not much lower than in Germany
   on six or seven major cities in the region. Saudi Arabia ac-                    Europeans are a very small minority among the many                                                                                  now,” says DaimlerChrysler employee Hirsch. “But if you
   counts for a third of DaimlerChrysler’s Middle Eastern                       foreign workers. Of course, links to other expatriates are                                                                             pay a good salary, you can obtain really good staff here.” In-
   sales; factor in Abu Dhabi, Kuwait, and Dubai, and this fig-                 very helpful. Some 5,000 Germans now live in Dubai – but                                                                               vestors in Dubai need exactly that kind of quality to prevent    Next generation: Fifty percent of Dubai’s population is under 18,
   ure rises to four-fifths.                                                    there are ten times more Britons. “The German merchant                                                                                 the heady rush of success from turning into a hangover. ■        but not all of them are going to be able to afford designer watches.

26 | LOGISTICS                                                                                                                                                                                                                                                                                                                                    LOGISTICS | 27
                                                                                                                                                                                     Solutions

                                                                                                                                                   { Arne Wegner }

                                                                                                                                                   »We don’t have much
                                                                                                                                                   space. It has to fit.«




   Pilot’s eye view: From 40 meters above the waterline, the pilot guides a container ship into a quay at Hamburg harbor.




                        Portrait of a pilot
        Harbor pilots such as Hamburg’s Arne Wegner have an exacting
                   job and are in increasingly high demand.
                                               [ Text ] Rainer Busch     [ Photos ] Achim Multhaupt




  W
                       ith a calm, clear             is the space through which this 334-              The 43-year-old came aboard using a
                       voice, harbor pilot           meter-long, almost 43-meter-wide car-             comparatively tiny boat: a harbor pilot
                       Arne Wegner states            go vessel must fit.                               vessel measuring just 20 meters. The
                       the course: “One one             Wegner is the third pilot today to             Lotse 1 made its way alongside the pow-
                       zero.” The helms-             climb aboard this ship, big enough to             erful black iron exterior of the Cour-
   man confirms: “One one zero.” Mov-                carry around 8,200 standard contain-              age until Wegner was able to stride
   ing slowly, at just five knots, the Hatsu         ers. Tankers measuring 60 meters                  into the pilot’s portal, which is only a
   Courage glides into Hamburg harbor.               or more in length, and other ships                few meters above the waterline. His
   On the port (left) side of the ship, im-          over 120 meters long, must be piloted             colleague, Thorsten Marquardt, ac-
   pressive villas line up along the river           along the approximately 80 nautical               companies him. The port of Hamburg
   Elbe. In the distance looms the silhou-           miles from the mouth of the river Elbe            requires two pilots for ships the size of
   ette of Hamburg, with its most famous             to the port of Hamburg by someone                 the Courage: Marquardt is responsible
   landmark, the St. Michaelis church,               who knows the way. The first pilot                for communicating with other ships,
   visible on the skyline. And, not very             came aboard the Courage some way                  while Wegner is responsible for safely
   far away now, a gap is opening up                 out to sea. The second pilot took over            navigating the vessels.
   ahead to starboard.                               responsibility at the Kiel Canal and                 “Slowly does it.” Barely on the
      If, like Wegner, you are standing a            navigated the ship’s passage along                bridge, Wegner is already reducing the
   good 40 meters above water level on               the river Elbe. Now it is Wegner’s                ship’s speed a little. The mooring in                         Navigating: Pilot Wegner (front)
   the bridge of a giant container ship,             job to guide the ship safely to its moor-         sight on the Burchard Quay is already                            on the bridge with the second
   that gap appears quite small. But that            ing at the port.                                  occupied by two feeder ships. The >                              pilot, captain, and helmsman.


28 | LOGISTICS
   { Arne Wegner }                                                                                                                                                                                                                                                  Solutions
   »Each ship is different. You
   need to be extremely alert.«



                                                                                                                                         Pilot boat: The tiny Lotse 1 ferries Hamburg
                                                                                                                                         pilots to the ships they will guide.




                                                                                                                                         Dockside: Wegner (left) with colleague
   Calm but concentrated: Arne Wegner observes the careful docking maneuver of the Courage.                                              Marquant after leaving the Courage.            Lords of the bridge: Captain Wilhelm Mayer (left) and pilot Wegner in Hamburg harbor.


   man in the checked shirt wants to wait         chairman of the Hafenlotsenbrüder-          salary is attractive – around €5,200       aft, are supporting this maneuver and          mitted to work alone as a junior pilot.         walls to both left and right are loaded
   until the two container feeders are out        schaft (Harbor Pilots’ Guild), a posi-      a month – and working as pilots they       being coordinated by the pilots. “We           It was only after five years’ experience        with container ships. No sooner is
   of the narrow harbor dock. “As soon            tion also known as “Ältermann.” This        aren’t away for months at a time, so       don’t have a great deal of space. It has       that he was finally allowed to guide the        the Courage securely moored than
   as the second one goes out, we’ll move         nickname goes back to the Hanseatic         they can spend more time with their        to fit,” says Wegner, dryly.                   really big ships.                               Wegner and Marquardt say goodbye
   in,” he says.                                  era. In the 14th century, it was local      families. “The pilot’s job is like the         Wegner has discussed this maneu-              Wegner has been doing this for               to Captain Mayer and disembark. One
       Bottlenecks are becoming more and          fishermen who worked on the river           traditional role of a captain,” accord-    ver beforehand with Captain Wilhelm            nine years now. One complete maneu-             of the two tugboats brings them back
   more common in Hamburg harbor. Ev-             Elbe as sea pilots, known as Lotsen. To-    ing to Lindner. “They are always ready     Mayer. Pilots are essentially consul-          ver lasts around two hours. When the            to the pilot station, a red brick building
   ery year, the port celebrates another          day’s pilots are qualified captains from    to go on duty. And if someone brings       tants to the captain, and the captain          job is complete, he has to wait. The            on the Seemannshöft pier, opposite the
   transshipment record; container traf-          the world of merchant shipping. There       a ship safely to the pier and receives     always has the last say in decisions. In       harbor pilot system works much like             elegant Elbe district of Othmarschen.
   fic in particular is booming. In 2006,         are a total of 69 of them in the Ham-       thanks from a colleague, then that         reality, however, the captain becomes          a taxi rank: You sit in a line and never            The Courage was the first ship of
   8.9 million standard containers were           burger Pilotageordnung (Hamburg             gives him a sense of achievement. That     an observer on his own bridge, as there        know exactly when your next job will            the day for Wegner; he will assist two
   discharged – nearly ten percent more           Pilotage Organization), one of whom is      is why we have more applicants than        is not very much scope for decision-           come along. It all depends on the num-          or three more before he finishes work.
   than in the previous year. An ever-            Wegner, offering their services around      vacant positions.”                         making and the tugboats are under              ber of vessels coming in and out. A             Is it not boring always going round
   increasing number of bigger and heavi-         the clock, 365 days a year. For the first                                              control via two-way radio.                     pilot can maneuver three to four ships          and round in circles and always on
   er ships is sailing into Germany’s larg-       time in a long time, the guild is consid-   “Starboard 20.” A little nervous ten-          Wegner himself was formerly a cap-         in one shift; they are on duty for six          the go? “Yes, it is repetitive work.”
   est port. And Hamburg can only keep            ering admitting more members. “Cur-         sion can be sensed on the bridge of the    tain and sailed the world’s oceans for         days and then off for three. After 12           Wegner grins, and then becomes seri-
   up with them to a restricted degree, as        rent staff numbers just cannot cope         Courage. Commands are given quietly.       many years. He became a pilot because          rounds of that, they then get three             ous. “Each ship is different. The cur-
   the shipping area was designed for ves-        with the number of ships,” says the         The giant bow slowly swings out to the     he wanted to spend more time at home.          weeks’ vacation.                                rent, the weather, the crew, even the
   sels from the 1950s and 1960s.                 50-year-old Ältermann.                      right and into the dock where it will      “I wasn’t enjoying the long stretches at                                                       port is always changing. You need
       This means more work and more                 There is currently a world shortage      be unloaded. Here the 334-meter ship       sea anymore.” To learn his new trade,          “Slowly, slowly back.” The engine of the        to be extremely alert, especially for a
   maneuvering stress for the pilots. “In         of master mariners, but the chances         has to turn further in order to reverse,   he had to spend eight months shadow-           Courage supports the tugboats in their          tight maneuver like that of the Cour-
   2002, we had around 2,000 maneu-               of Hamburg netting one of these rare        stern first, into the rectangular dock,    ing an experienced pilot and traveling         work. The rotation of the ship is com-          age.” But he does not want to return to
   vers per month, and last year we had           captains are good compared to their         and then to its mooring at the farthest    on tugboats, and also had to study and         plete, and it reverses into the dock. It        a life on the ocean wave. “Being a pilot
   almost 3,000,” says Thomas Lindner,            competitors around the world. The           corner. Two tugboats, one fore and one     pass a theory exam. Then he was per-           is also narrow here because the quay            makes every day exciting.”               ■

30 | LOGISTICS                                                                                                                                                                                                                                                            LOGISTICS | 31
                                                                                                                                                                  Interview




                                            “Security is a costly mess”
                                                     The new head of cargo security at IATA wants to introduce
                                                              secure supply chains for all air cargo.
                                                                                      [ Interview ] Axel Novak    [ Photos ] Marc Wetli




                                            H
                                                        ow has airfreight security changed since 9/11?            Community, is an attempt to standardize at a more local
                                                        The events of 9/11 marked the realization that the        level. It has had some success, but not enough. Industry
                                                        terrorist threat to commercial aviation had per-          stakeholders and the European Commission have long been
                                                        manently changed. Here we are, six years on, and          working together trying to improve things. But different
                                                        air cargo security has improved, but the system           states face different threat levels and will always maintain
                                            is inefficient and requirements are not harmonized. There             their right to protect themselves with additional or differ-
                                            are a number of measures which are not appropriate or                 ent measures as they see fit.
                                            effective. And it is all very costly. Airlines spend $5.6 bil-
                                            lion a year on measures instituted since 9/11. Essentially,           How much cargo is transported without any security rules?
                                            aviation security is about securing the homeland, not the             The intent of Annex 17 is to prevent cargo that is not secure
                                            aviation industry. Therefore, national governments should             from being transported out of any contracting state. It cov-
                                            fund it. This happens in some countries but not in others,            ers passenger commercial aircraft and, to a lesser extent, all-
                                            and it has created a playing field that isn’t level. It makes a       cargo operations. The way states interpret the requirements
                                            huge difference when our members’ margins are so low.                 is based on the level of security threat they consider them-
                                                                                                                  selves to be facing. And the threats they face do differ.
                                            How can the airlines resist the political pressure to strengthen
                                            security policies?                                                    So, in practical terms, common baseline security measures
                                            Governments have a legal duty to oversee security, and                do not exist?
                                            airlines respect that. We support measures which are pro-             A few do, most commonly x-ray screening and hand search,
                                            portional to and address the threat. These are key points.            but we need more of them. The lack of harmonized measures
                                            We need a layered approach containing a range of effective            makes operations very difficult and complex for companies
                                            measures which address the changing threat environment                that operate between different regions of the world. So one
                                            in which we live and can be deployed and discontinued as              of the things the industry is attempting is to lobby states
                                            appropriate. Requirements must be financially and opera-              to harmonize and mutually recognize measures and each
                                            tionally sustainable.                                                 others’ security programs.

                                            Why are there no global security stan-                                                        Is this a fundamental role for IATA?
                                            dards for air cargo?                         BIOGRAPHY                                        Yes. We exist to represent, lead, and
                                            This is a very political issue. The
                                            International Civil Aviation Orga-           John Edwards                                     serve the airline industry. For cargo
                                                                                                                                          security this means working with our
                                            nization first adopted Annex 17,                                                              members and other key supply-chain
                                            intended to safeguard international          ■ Strategist: John Edwards is head of cargo      stakeholders to develop solutions to
                                            civil aviation against acts of unlawful      security for the International Air Transport     which we can commit, that are effec-
                                            interference, in 1974. A key purpose         Association (IATA) in Geneva, Switzerland.       tive, and which can be recommended
                                            is standardization by contracting            He is responsible for cargo aviation and         to governments for adoption.
                                            states. That is, they should imple-          customs security strategy and policy. As a
                                            ment the same baseline measures.             member of the Cargo Leadership Team he           This is why you met with FIATA in June
                                            The measures are high-level and              reports to the Global Head of Cargo.             in Brussels?

»Security measures must be financially      states interpret them very differ-
                                            ently. So we find that standardiza-          ■ Experience: Before joining IATA,
                                                                                                                                          The International Federation of
                                                                                                                                          Freight Forwarders Associations and

          and operationally sustainable.«   tion hasn’t been hugely successful.
                                            Regulation 2320, for the European
                                                                                         Edwards worked for British Airways, where
                                                                                         he was responsible for cargo security.
                                                                                                                                          the International Air Transport As-
                                                                                                                                          sociation represent two significant air >

                                                                                                                                                                        LOGISTICS | 33
                                                                                                                                                                                                 Interview
»We have only four or five years to develop
  solutions that fit current business models.«

                                                                         cargo communities. We believe that if we provide leader-
                                                                         ship by forming an industry group and encouraging other
                                                                         associations, many of whom also recognize the need for co-
                                                                         operation, to join, then we stand a better chance of making a
                                                                         genuine difference to air cargo supply-chain security.

                                                                         So why wasn’t the Air Cargo Security Industry Forum created
                                                                         much earlier?
                                                                         The environment now is right. Cargo security is a costly
                                                                         mess. Governments are developing new requirements and
                                                                         not harmonizing them. Some measures are not effective;
                                                                         some are not enforced. As the two industry associations
                                                                         that represent the majority of air carriers and forwarders,
                                                                         we believe that we must take a leadership role. We must
                                                                         encourage relevant industry bodies to work together as nev-
                                                                         er before to stabilize and correct this situation.

                                                                         What’s the next step after Brussels?
                                                                         The inaugural meeting was a success. ACSIF has reached
                                                                         agreement on how it will operate, and five of the six posi-
                                                                         tions on the Executive Committee have been filled. It is
                                                                         developing a set of principles, positions, and actions for         Airfreight: The industry is pushing for workable worldwide standards.
                                                                         delivery during its first year and beyond.

                                                                         How many associations have been invited and how many will
                                                                         eventually become members?                                         Will new security measures for air cargo create new regulations
                                                                         The ACSIF is open to any industry stakeholder association.         for other modes?
                                                                         We can’t go out and invite everybody, because we don’t             Possibly. Aviation security requirements are generally
                                                                         actually know how many organizations exist. Twenty-one             more rigorous than for other modes. Air cargo is always
                                                                         associations have joined and fourteen attended, includ-            transported by means of more than one mode. If it is travel-
                                                                         ing one from the United States and two from South Africa,          ing to an airport by road or rail, equivalent measures have
                                                                         which is a pretty good start by any measure.                       to be in place from the moment the freight can be identi-
                                                                                                                                            fied as air cargo. Otherwise it will have to be screened at the
                                                                         You say we must globalize standards in five years, otherwise the   departure airport.
                                                                         industry is going down. What do you mean?
                                                                         Well, we have a window – it’s very difficult to say if it’s        You have said in the past that you advocate simplicity in air
                                                                         three, four or five years, but I think we have a limited           cargo. What do you mean?
                                                                         amount of time to develop solutions to fit current business        The IATA is committed to simplifying commercial avia-
                                                                         models. For air cargo, speed is the key selling point. It is       tion. Making it easier, quicker, more accessible, higher in
                                                                         our main competitive advantage. It is also critical for some       quality, and more cost-efficient. A good comparison is the
                                                                         commodity types. The industry cannot afford to lose it,            e-ticket, which is linked to online and self-service check-in
                                                                         and security solutions must not disrupt it. This makes             and improving the passenger experience.
                                                                         supply-chain security all the more important. So we must
                                                                         put all of our effort into developing secure supply chains         Something like “e-freight” documents?
                                                                         and securing the global network.                                   That’s one part of it. Trying to reduce the number of docu-
                                                                                                                                            ments required for each consignment. Removing whatever
                                                                         Is there a difference between a secure supply chain and an         papers and documents you legally can from the process. The
                                                                         efficient supply chain?                                            amount of documentation currently required to ship cargo
                                                 Photo: ASAP/F1 ONLINE




                                                                         I don’t see a distinction. It’s key that what is required from     around the world is enormous. Much of the air cargo docu-
                                                                         a security perspective is integrated into the business model       mentation should be obsolete, given the electronic environ-
                                                                         and not unduly disruptive. That’s why we need security mea-        ment in which we now live.                               ■
                                                                         sures applied up-stream in the supply chain, from the first
                                                                         point at which cargo is evidently going to be carried by air.      www.iata.org

                                                                                                                                                                                                       LOGISTICS | 35
People                                                                                                                                                                                                                                                                                                  People

                                                                                                                                                                                                                                                                                       New horizon: Andreas
                                                                                                                                                                                                                                                                                       Schneider (left) and
                                                                                                                                                                                                                                                                                       Gerhard Oswald have a
                                                                                                                                                                                                                                                                                       better deal for container
                                                                                                                                                                                                                                                                                       customers at German

 Fast track to Paris and Frankfurt
                                                                                                                                                                                                                                                                                       seaports.



 ■ Germany and France have long formed       lief that it all went according to plan,”
 the economic motor of Europe. And           says Osterkamp. Her contribution is
 Deutsche Bahn Project Manager Kirst-        the certification of French TGV trains
 en Osterkamp is part of the team that’s     to travel in Germany, which also in-
 now putting that motor into high            cludes daily services on the route
 gear – at least as far as passenger train   from Paris to Stuttgart. Osterkamp
 travel is concerned. On 10 June a Ger-      speaks fluent French, making her
 man high-speed train made its maid-         job a lot easier. “We had obstacles                                                                                                  Empowering employees: Jay Arnold is in
 en journey on the Frankfurt to Paris        to overcome, but the coopera-                                                                                                        charge of human resources at BAX Global.
 route, the culmination of four years        tion has been great,” she says.
 of planning and technical prepara-
 tion. Until now, Germany’s ICE trains
                                             Osterkamp hopes the project
                                             will not only bring Germany                                                                                                          “You get what
                                                                                                                                                                                  you give”
 and France’s TGV trains were not            and France closer, but also
 compatible on each other’s track net-       serve as a model for ac-
 works. So the June debut was an im-         celerating the process of
 portant milestone. “It was a huge re-       European integration.                                                                                                                ■ A sailing truth: If you sail with the
                                                                                                                                                                                  wind full in your sails, you move
                                                                                                                                                                                  much faster. But a close-hauled sail
                                                                                                                                                                                  requires lots more physical effort
                                                                                                                                                                                  to control. Jay Arnold, in charge
                                                                                                                                                                                  of personnel at joint Schenker and
                                                                                         All aboard: Kirsten
                                                                                                                                                                                  BAX operations in the United
                                                                                          Osterkamp checks
                                                                                           out a French TGV                                                                       States, is an experienced sailor in
                                                                                            for German rails.                                                                     his free time. He knows all about
                                                                                                                                                                                  winning tactics. His motto: You get
                                                                                                                                                                                  what you give. Arnold is currently
                                                                                                                                                                                  working on the Schenker-BAX inte-
                                                                                                                                                                                  gration process, and once it is com-
                                                                                                                                                                                  plete, he will be responsible for hu-
                                                                                                                                                                                  man resources at the regional head
                                                                                                                                                                                  office for America. He says the com-
                                                                                                                                                                                  pany’s employees are its greatest re-
                                                                                                                                                                                  source in making the 2006 merger
                                                                                                                                                                                  between the German and American
                                                                                                                                                                                  companies function smoothly.
                                                                                                                                                                                  “Employees are assuring us that
                                                                                                                                                                                  this will become a success,” says Ar-
                                                                                                                                                                                  nold. The senior executive believes
                                                                                                                                                                                                                             Boosting harbor services
                                                                                                                Photos: Theo Barth, P. Castagnola, Stettin Konzepte/Transfracht
                                                                                                                                                                                  one of the requirements for making
                                                                                                                                                                                  it happen is an open atmosphere
                                                                                                                                                                                  for communication, ensuring that           ■ Ambitious plans: Gerhard Oswald         also provides services from the origi-
                                                                                                                                                                                  concerns among the workforce are           and Andreas Schneider, joint man-         nal loader to the port. The duo made
                                                                                                                                                                                  being addressed at all times. Says         aging directors of Deutsche Bahn’s        the announcement at the Transport
                                                                                                                                                                                  Arnold, “If you give 100 percent,          Transfracht International company,        Logistics trade fair in Munich as
                                                                                                                                                                                  you should expect the same from            say they will improve transport           they were presenting new products.
                                                                                                                                                                                  your team.” Specifically, Arnold has       infrastructure while boosting rail        Oswald is in charge of marketing
                                                                                                                                                                                  four key things he expects from ev-        services for customers. Transfracht       and distribution at Transfracht.
                                                                                                                                                                                  ery employee: teamwork, passion,           transports containers for shipowners      Schneider, a veteran of DB’s Railion
                                                                                                                                                                                  clear priorities, and sound judg-          and freight forwarders from German        unit in Denmark, looks after sales.
                                                                                                                                                                                  ment. Arnold lives with his family         seaports directly to end recipients. It   www.transfracht.de
                                                                                                                                                                                  in Huntington Beach, California.

                                                                                                                                                                                                                                                                                                         LOGISTICS | 37
People

       Juggling tastes:                                                                Easy rider                                                                                    Cristina Cornejo
                                                                                                                                                                                     from Schenker in Chile
                                                                                                                                                                                     likes big challenges.
                                                                                       down under
       Schuhbeck
       creates theme
       menus for DB.
                                                                                                        ■ A dream come true
                                                                                                        for Schenker’s Jens
                                                                                                        Grovermann: he
                                                                                                        traveled across the
                                                                                                        Australian outback
                                                                                                        on his Harley – 4,500
                                                                                                        kilometers from Syd-
                                                                                                        ney to Perth. “It took
                                                                                       a bit of preparation, but I know what
                                                                                       I’m dong,” says Grovermann, who
                                                                                       has been a Harley Davidson rider for
                                                                                       about 14 years now. When he’s not
                                                                                       on his machine, Grovermann is busy
                                                                                       organizing trade fair, sport, and art
                                                                                       logistics projects for DB’s Schenker
                                                                                       unit. He took up the job last year,
                                                                                       and is a convinced international-
                                                                                       ist. “In the events logistics business
                                                                                       you get a fascinating perspective on
                                                                                       how borders are overcome,” says
                                                                                       Grovermann. His next project is
                                                                                       managing the transport of stunt
                                                                                       airplanes for the Red Bull Air Race
                                                                                       in Perth, scheduled for November.




                                                                                       New man for
                                                                                       Rotterdam
                                                                                                       ■ Ummo Bruns loves
                                                                                                         water, and now he
                                                                                                         enjoys dramatic
                                                                                                         harbor views of
                                                                                                         the Westhafen in

     Lunch for logisticians                                                                              Rotterdam. They
                                                                                                         come along with
                                                                                                         his job as Railion’s                                                        A new player for project logistics in Chile
     ■ How do you get a top chef to show     cooking up a storm for visitors to the    new commissioner for the Dutch
     up and man the kitchen at your trade    Deutsche Bahn stand. Schuhbeck was        harbor. “I’m working to strengthen                                                            ■ The liquefied natural gas plant to     this mother and passionate cook often     for the Atacama Large Millimeter
     fair event? Well, it’s not quite so     the gastronomic mastermind behind         the position of Deutsche Bahn                                                                 be built at Quintero Bay, near Val-      looks out of place when clients and       Array telescope being built in the
     hard if you are a logistics company.    the culinary specialties whipped          among the players at the port,” says                                                          paraíso, is one of the most important    suppliers come together to discuss        desert mountains of northern Chile.
     If anybody can appreciate the im-       up to coincide with the geographic        Bruns. “And to come up with ideas                                                             energy projects in Chile. When the       details. But not for long. “I’m always    When finished, the facility will be the
                                                                                                                                 Photos: Schuhbecks Gewürze GmbH, privat(2), DB AG




     portance of delivering products on      theme days used by DB to organize         to increase rail’s share of the modal                                                         re-gasification terminal goes on line    the only woman at big meetings, so        world’s highest observatory. That’s
     time and in excellent condition, it’s   its guest program at this year’s fair.    split.” Bruns studied maritime busi-                                                          sometime in 2009, it will be supply-     the first thing I have to do is win the   a great location for a telescope, but a
     a fussy, internationally acclaimed      Schuhbeck says he didn’t bother to        ness. In the meantime, he’s got 30                                                            ing energy to the whole of central       respect of the male participants,” says   real challenge for logisticians. Cornejo
     chef – like the Bavarian celebrity      consult his recipe files when creat-      years in the logistics sector under                                                           Chile, meeting about 40 percent of       Cornejo. She took over responsibil-       has worked in international freight
     chef Alfons Schuhbeck.“Cooking for      ing typical menus for the European,       his belt, working for Hapag Lloyd,                                                            the nation’s energy needs. Schenker      ity of project logistics at Schenker in   forwarding for 15 years now. She has
     logistics people is a special treat,”   American or Asian theme days. “In         among others. Bruns speaks five lan-                                                          in Chile is in charge of logistics for   Chile at the beginning of this year.      held posts in just about every aspect
     he says. “Without logistics, we’d       the same way a conductor knows his        guages, and part of his job is promot-                                                        the future terminal, and calling the     Aside from the Quintero Bay plant,        of the business, from customer service
     have nothing to cook!” Schuhbeck        music by heart, I have plenty of reci-    ing stronger ties between Germany                                                             shots for the company on the project     which is being built by a consortium      to managing air and freight cargo. To
     was on hand in June at the Transport    pes in my head that I just adapt to fit   and the Netherlands.“I’d like to see                                                          is Cristina Cornejo. Projects of this    called GNL Quintero, Cornejo has          balance her life-work mix, she retreats
     Logistics fair in Munich, Germany,      special occasions,” says Schuhbeck.       better cooperation between the two                                                            size and importance remain mostly        also been involved in organizing the      with her husband and son to their
                                                                                       nations in matters of logistics.”                                                             the responsibility of men in Chile, so   transport of high-tech components         coastal home near Santo Domingo.

38 | LOGISTICS                                                                                                                                                                                                                                                                                         LOGISTICS | 39
                                                                                                                                                                            Power


                                                                         Arteries of steel
                                                          Pipelines are the blood vessels of the global energy industry.
                                                          No other carrier is so reliable. And because of high oil prices,
                                                                    the enormous investments are paying off.
                                                                                                        [ Text ] Michaela Harnisch




                                                   P
                                                                ipelines are the carriers of the future.” Andreas      pany, headquartered in Munich, has offices in 30 locations
                                                                Kohler, CEO of ILF Beratende Ingenieure, is cate-      around the world. A prime example is the longest pipeline
                                                                gorical when he states that no other means of trans-   in the world, the Baku-Tbilisi-Ceyhan (BTC) pipeline.
                                                                portation brings together so many advantages as        Construction took nearly ten years from concept to kick-off.
                                                                steel pipes. Three arguments support the claim         The 1,750-kilometer pipeline has been pumping oil from the
                                                   made by this manager – one whose company leads the field in         Caspian Sea to the Turkish oil harbor of Ceyhan on the Med-
                                                   Germany and is in the world’s top ten when it comes to plan-        iterranean since 2006. Some $3.6 billion have been invested
                                                   ning pipelines. First, there is the high price of oil and gas.      into the line by its owners. And as the pipeline runs through
                                                   Experts believe the cost of oil will stay elevated in the long-     three nations, there was some complex preparation to do.
                                                   term and so the demand for pipelines will also remain.              “We had to take special circumstances into consideration,
                                                   Despite the high costs of construction, operation of a pipe-        like earthquake zones and regions of political unrest, as well
                                                   line is cheap. Second, pipelines are more environmentally           as mountains higher than 2,800 meters,” explains Kohler.
                                                   friendly and help to reduce the production of the greenhouse           Such factors will become increasingly important in the
                                                   gas carbon dioxide. “Relatively little energy is required for       future. This is because the distances between extraction
                                                   the drive pumps, so pipeline networks are a lot more ef-
                                                   ficient and kinder to the environment than other means of                                { Andreas Kohler }
                                                   transportation,” says Kohler. Last but not least, pipelines are
                                                   reliable and safe when it comes to transporting oil, gas or
                                                   chemicals. For example, the trans-alpine oil pipe between
                                                                                                                                            »Almost
                                                   Trieste in Italy and southern Germany has been pump-
                                                   ing oil from the Mediterranean over the Alps for 40 years.
                                                                                                                                            every project
                                                   The total so far comes to one billion tons and, according to
                                                   Kohler, all of it was delivered uneventfully.                                            counts with
                                                                                                                                            such demand.«
                                                       The prospects for pipeline constructors are good. To-
                                                   day, a gigantic pipe network runs throughout the globe. In
                                                   total, it stretches three million kilometers, and each year it
                                                   grows by a further 25,000 kilometers. After the traditional         sites and recipients are growing. Storage facilities are get-
                                                   products of gas and oil, the boom in the liquid gas sector is       ting further and further away from ports, production plants,
                                                   becoming attractive as a new and promising variety of               and consumers. The high price of oil and natural gas is also
                                                   “freight.” Liquefied natural gas is transported over long           making remote locations economical.
                                                   distances by special tankers. The means laying new lines
                                                   between compression stations and loading ports. “Our busi-          Irrespective of the size of future pipelines, the planning pro-
                                                   ness is going so well that we need 50 new engineers in order        cess is always the same. After the preliminary studies have
                                                   to meet all of our contractual obligations,” says pipeline          been carried out, engineers begin an extensive feasibility
                                                   constructor Eginhard Vietz from Vietz in Hanover. This              study that can take up to two years. “Whether a project is
                                                   construction company has been in business on a global scale         profitable depends on where the source is and the distance
                                                   for more than 30 years.                                             to the destination,” explains Kohler. Other factors are the
                                                       So there are good prospects and full order books for plan-      amount of oil and gas that can be expected and the trans-
                                                   ners, pipe manufacturers, and construction companies.               portation costs. To make sure the initial investment pays
Permafrost:                                        The construction of a new pipeline is an expensive busi-            off and the pipeline network operates efficiently and at full
Extreme fluctuations                               ness – depending on the location and length, pipelines can          capacity, several parties join forces to form one operating
in temperature put a                               cost between $900,000 and $2 million per kilometer. First           company. Eleven multinational groups are involved in the
strain on the material                             of all, constructors carry out a preliminary study. An initial      BTC, with 25 percent, the largest share, being held by the
                         Photos: Corbis, private




of pipelines.                                      overview should produce raw data that include the scope,            Azerbaijani company SOCAR.
                                                   costs, and expected profits of the planned project. “From               The pipeline route is above all a question of technology.
                                                   the preliminary calculations to operation of the system,            As such, the number of gigantic pump and compressor sta-
                                                   you are talking several years,” says Kohler, whose com-             tions, as well as underground gas storage facilities that >

                                                                                                                                                                            LOGISTICS | 41
                                                                                                                                                                                                                                                                                                                                                            Power
                                                                                                                                                                                                                           GIANT PIPES

                                                                                                                                                                                                                           Creating a round pipe from flat steel
                                                                                                                                                                                                                           ■ UOE Process: The Europipe company, based in Mülheim,                   double check the production with the help of ultrasound and
                                                                                                                                                                                                                           Germany, uses a special, cold-forming process called “U-O-E”             x-ray diagnostic tools, and other high-tech devices. UOE comes
                                                                                                                                                                                                                           to create 12- or 18-meter pipes. After each of the steps, workers        from “U shape, O form, and expander.”




   Final polish:
                                                                                                                                                                                                                                   1  The edges of the
                                                                                                                                                                                                                                      steel plate are
                                                                                                                                                                                                                                      bent slightly.
                                                                                                                                                                                                                                                                     2   Next, a giant tool
                                                                                                                                                                                                                                                                         forms the entire plate
                                                                                                                                                                                                                                                                         into a “U” shape.
                                                                                                                                                                                                                                                                                                         3   Another tool bends the
                                                                                                                                                                                                                                                                                                             shape into an “O” form,
                                                                                                                                                                                                                                                                                                             leaving a small gap.
                                                                                                                                                                                                                                                                                                                                          4   The seam is fixed
                                                                                                                                                                                                                                                                                                                                              before being
                                                                                                                                                                                                                                                                                                                                              permanently welded.
   A worker smooths
   down the ends of a
   pipe for Europipe in
   Mülheim, Germany.




                                                                                                                                                                                                                                   8   The ends of the pipe
                                                                                                                                                                                                                                       are finsihed and given
                                                                                                                                                                                                                                       a protective covering.
                                                                                                                                                                                                                                                                     7   An “expander” is
                                                                                                                                                                                                                                                                         inserted to insure the
                                                                                                                                                                                                                                                                         pipe is perfectly round.
                                                                                                                                                                                                                                                                                                         6   The outside seam is
                                                                                                                                                                                                                                                                                                             then permanently
                                                                                                                                                                                                                                                                                                             closed with a weld.
                                                                                                                                                                                                                                                                                                                                          5 Pipes are permanently
                                                                                                                                                                                                                                                                                                                                            welded along the in-
                                                                                                                                                                                                                                                                                                                                            side seam.



                                                                      assure constant flow speed, is crucial to the performance of                                                                                         already working on plans for a second pipeline that would                pushed apart with an expander so that the pipe is uniformly
       HISTORY                                                        the pipeline. The longer the line, the greater the number of                                                                                         be laid next to the BTC.                                                 round. It takes two shifts for Europipe employees to fin-

       Pipelines through                                              stations required. With the BTC, for example, eight pump
                                                                      stations, two maintenance stations, and 110 distribution sta-                                                                                        Running in parallel to the planning stage is the tendering of
                                                                                                                                                                                                                                                                                                    ish a pipe. Near the end of the process, the steel pipe has
                                                                                                                                                                                                                                                                                                    a seam welded along it lengthwise. After that, x-ray and

       the ages                                                       tions ensure the required flow over mountain ranges and
                                                                      across some 1,500 waterways.
                                                                                                                                                                                                                           cooperation partners and suppliers. “Oil and gas companies
                                                                                                                                                                                                                           come to us with concrete jobs, and we develop the exact speci-
                                                                                                                                                                                                                                                                                                    ultrasound tests, as well as checks using water pressure,
                                                                                                                                                                                                                                                                                                    are used to detect the slightest defect.
                                                                                                                                                                                                                           fications,” says Dr. Hans-Georg Hillebrand, head buyer of the               If the pipe is intended for a gas line, it will be given a
       ■ Ancient times: In the Roman era, water channels simi-        For around 15 years now, environmental impact has played an                                                                                          large pipe manufacturer Europipe. This global market lead-               special coat of paint on the inside. “The purpose is to re-
       lar to pipelines were already in use. The remains of these     important part in pipeline planning. Among other factors,                                                                                            er in the manufacture of longitudinal seam-welded 12- and
       systems are still being discovered in Europe and Asia. In      this has been due to the actions and protests of environmen-                                                                                         18-meter pipes for gas and oil, a subsidiary of the two steel                                      { Jens Häselhoff }
       the Middle Ages, traders would transport liquids via hol-      tal protectionists. “If current national and European envi-                                                                                          companies Dillinger Hüttenwerke and Salzgitter Mannes-
       lowed-out tree trunks held together by metal bands.            ronmental standards are not complied with, then there will
                                                                      be difficulties with the start of construction,” says Kohler.
                                                                                                                                                                                                                           mann, only produces to order.
                                                                                                                                                                                                                              It takes approximately three months for the steel
                                                                                                                                                                                                                                                                                                                              »Logistics
                                                                                                                                                                                                                                                                                                                              with military


                                                                                                                                       Photos: U. Baumgarten/vario images, private Graphics: KircherBurkhardt Infografik
       ■ Oil boom: In 1859, Edwin L. Drake drilled to a depth of      Recently, certain social issues have arisen in the transit                                                                                           to be ordered, poured, rolled into long sections and de-
       22 meters to create the first large oil well at Oil Creek in   countries. Feasibility studies looking at “social compatibil-                                                                                        livered to Europipe. The pipes are not only different in
       Pennsylvania. That was the starting shot for commercial
       oil extraction. He used wooden vats to transport the
                                                                      ity” are carried out to assess whether enough consideration
                                                                      has been given to the impact of construction on people liv-
                                                                                                                                                                                                                           terms of length or diameter. A large pipe starts at half a
                                                                                                                                                                                                                           meter and goes up to 1.60 meters. What’s important is the                                          precision is
       oil, which is why crude oil is still measured in barrels
       (159 liters). The first real pipeline was made from wood.
                                                                      ing in the vicinity of the pipeline.
                                                                         Among the most extensive and complex parts of the
                                                                                                                                                                                                                           intended use. Whether gas or oil is to flow through the pipes
                                                                                                                                                                                                                           dictates the expensive coating that must line the interior.                                        required.«
                                                                      study are the approval process and international standards.                                                                                          Moreoever, the course of the pipeline – whether it is to run
       ■ Prototype: In 1878, engineer Alfred B. Nobel and his         However, local regulations, such as occupational health                                                                                              on land or underwater – affects production as well as the                duce losses caused by friction,” explains Hillebrand. Pipe
       brothers in Russia founded the Nobel Brothers Petroleum        and safety or radiation protection, must also be taken into                                                                                          quality and type of steel to be used. Each project requires              cladding made from different layers of plastics should keep
       Company to extract crude oil in the Baku region. Between       consideration. “We must all abide by these regulations if we                                                                                         a different composition of raw steel, and each type of steel             rust at bay and prevent leakages.
       1896 and 1906, the first pipeline in Eurasia was construct-    are to receive the necessary official stamps,” says Kohler.                                                                                          need different handling. Therefore, any order bound by con-                 Pipelines are large and heavy; an 18-meter pipe weighs
       ed. Running from Baku to Batumi on the Black Sea,              Added to this is the matter of private law permissions. Rights                                                                                       tract goes to the sheet metal rolling plant. Nothing is stored.          between 5 and 15 tons, depending on diameter and thick-
       the pipeline was 883 kilometers long and had a capacity        of way must be clarified and real-estate owners must be                                                                                                 Europipe has built up the required capacities at five pipe            ness. But it is not just because of weight that manufacturers
       of 900,000 tons a year. Development of the dense               brought on board. If all the pieces of the puzzle are brought                                                                                        production lines worldwide. The most efficient method to                 avoid moving parts more often than necessary. Each maneu-
       pipeline network that now runs throughout the world            together, it then comes down to decisions regarding invest-                                                                                          manufacture large pipes is the UOE process (see diagram                  ver can damage the pipe. The slightest dent or crack poses
       started after World War II.                                    ment. Kohler adds, “With the current energy situation,                                                                                               above). During this procedure, the steel sheet is pressed                a safety risk and requires reworking – and that costs both
                                                                      almost every project counts.” His engineering company is                                                                                             into a “U” shape, then forced into an “O,” then finally                  time and money. Pipes are therefore gently swung from a >

42 | LOGISTICS                                                                                                                                                                                                                                                                                                                                             LOGISTICS | 43
                                                                                                                 Heavy lifting:                                                                                                Offshore: Workers
                                                                                                                 A machine moves                                                                                               on a moving ship
                                                                                                                 pipes into position                                                                                           weld pipes for the
                                                                                                                 for an oil pipeline in                                                                                        undersea Langeled.
                                                                                                                 Kazakhstan.




   vacuum crane during transfers. The machine sucks up the         Subcontractors then transport the pipes from central                                                                                                        gineers have developed a laser-welding system, which ten
   parts at low pressure and moves them with great care.           collection points to the section under construction ac-                                                                                                     people can operate together to lay five kilometers of pipe-     PIPELINE MAINTENANCE
      This is where Jens Häselhoff already has his hands full.
   The Europipe logistics expert is exploring transport routes
                                                                   cording to an exact transfer schedule. “If pipes need to be
                                                                   laid on short notice,” says Häselhoff, “we deliver them
                                                                                                                                                                                                                               line a day. This could shorten construction time by around
                                                                                                                                                                                                                               two-thirds.                                                     Using pigs to clean
   and means of transportation, making sure not to neglect one
   crucial aspect when planning many projects – time of year.
                                                                   ourselves just-in-sequence.” Material needs to be laid
                                                                   immediately, particularly in populated areas. For a 100-
                                                                                                                                                                                                                                  Once the pipeline has been laid, engineers then begin a
                                                                                                                                                                                                                               series of complex safety and quality checks, including a        the pipes
   In countries with a moderate climate, the main season for       kilometer pipeline with 12-meter pipes, up to 2 500 trucks                                                                                                  stress test. The line is filled with water under high pres-
   laying pipes is spring and summer. This is something logis-     are on the go.                                                                                                                                              sure to expose any leakage points. The welding seams are        ■ Pipeline’s little helper: So-called pigs are used to
                                                                      Häselhoff and his team of logistics experts have to be in                                                                                                also closely scrutinized. Controls and clearances are carried   remove residues from gas or oil pipelines and to detect
                         { Eginhard Vietz }                        particularly good shape when making offshore pipe deliv-                                                                                                    out by particular testing institutions such as the German       weakness in the materials. These are highly complex
                                                                   eries. “When we work on underwater pipelines, logistics                                                                                                     Association for Technical Inspection. The pipelines are also    machines that adapt to the internal shape of pipelines.
                         »Business is                              with military precision is required, as people are work-
                                                                   ing around the clock on a pipe-laying ship,” he says. With             Photos: Xinhua/Gamma/laif, Vietz, S. Barbour/Getty Images, NDT Systems&Services AG
                                                                                                                                                                                                                               given cathodic protection to determine any rust formation
                                                                                                                                                                                                                               on the pipe using current voltage.
                                                                                                                                                                                                                                                                                               They worm through the line along with the product flow.


                         going so well                             the “Langeled”, for example, a 1,200-kilometer gas pipe-
                                                                   line running between the Norwegian town of Nyhamna
                                                                                                                                                                                                                                  Every 10 to 15 years pipelines are checked with an
                                                                                                                                                                                                                               intelligent “pig” system. High-tech devices wind their way
                                                                                                                                                                                                                                                                                               ■ Sounding it out: Detection pigs are equipped with
                                                                                                                                                                                                                                                                                               a variety of sensors and detectors. Using ultrasound or

                         that I need                               and Easington in northern England, loaders from the
                                                                   mainland run back and forth to the pipe-laying ship to
                                                                                                                                                                                                                               through the pipeline, using ultrasound to search for rust,
                                                                                                                                                                                                                               cross-sections changed through external influences, and
                                                                                                                                                                                                                                                                                               whirlpool sensors, they measure the strength of the
                                                                                                                                                                                                                                                                                               pipe walls, which enables them to discover rust spots

                         more staff.«                              ensure a permanent supply. In total, 100,000 large pipes are
                                                                   required for this, the longest underwater line and the first
                                                                                                                                                                                                                               scouring caused by oil and gas. “Repairing these defects
                                                                                                                                                                                                                               is a complex process,” says Vietz. A special bypass en-
                                                                                                                                                                                                                                                                                               or tension cracks.

                                                                   deep-sea gas extraction facility. Because there are few such                                                                                                sures that the line remains in operation while the              ■ Removing the residues: Cleaning pigs (the photo
   tics experts have to consider when coordinating delivery        ships, everystep in this expensive sea mission has be metic-                                                                                                damaged part is disconnected and                                          shows a model from NDT Systems & Services)
   times. To cope with these demands, Häselhoff uses a combi-      ulously planned and prepared.                                                                                                                               replaced. However, pipeline construc-                                          have brush collars on the sides and shift
   nation of train, ship, and truck. Therefore, Europipe has set                                                                                                                                                               tor Vietz reassures: “With the cur-                                                deposits forward to the next extrac-
   up a hub in Bremen. Deutsche Bahn subsidiary Railion op-        In laying pipes on land, the most difficult is final preparation                                                                                            rent state of technology, it is possible                                             tion station. They are moved fur-
   erates up to five block trains from Mülheim to the hub each     for the sections. Before pipelines are laid they are machine-                                                                                               to guarantee a service life of at least                                               ther along the system using inert
   day. “That equates to some 500,000 tons of large pipes ev-      welded at the ends. This happens in sections of ten to twelve                                                                                               100 years, as long as the pipelines                                                   gases, air or water. Cleaning pigs
   ery year,” says Häselhoff. From Bremen, the pipes continue      pipes positioned end to end. “With our 300-strong team, we                                                                                                  require neither external nor inter-                                                   are sent through the lines on a
   their journey by ship.                                          are currently in a position to construct some 1.5 kilometers of                                                                                             nal repair work.”                   ■                                                 regular basis – usually
      At the destination port, low-loading trucks wait to          pipeline per day,” says pipeline constructor Vietz. Since                                                                                                                                                                                        every three to five years.
   transfer freight to the construction site or storage area.      2008, the pace has quickened further as Vietz and his en-                                                                                                   www.europipe.de

44 | LOGISTICS                                                                                                                                                                                                                                                                                                                                          LOGISTICS | 45
Essay                                                                                                                                                                                                                                                        Essay


                                                                                                                                          The coup de grâce for the North       size their physical plants by en-                  highly disruptive to services
                                                                                                                                          American railroads was the post-      abling competitors to merge and                    for both commuting passengers

    Stocks in American railroad companies are                                                                                             World War II construction of
                                                                                                                                          the interstate highway system,
                                                                                                                                                                                abandon redundant infrastruc-
                                                                                                                                                                                ture. At around the same time,
                                                                                                                                                                                                                                   and freight customers. Now op-
                                                                                                                                                                                                                                   timized, a heavy rail system is in

    attracting interest among prominent investors.                                                                                        combined with the advent of
                                                                                                                                          widely available jet aircraft trav-
                                                                                                                                                                                production of retail goods sold
                                                                                                                                                                                in America began moving be-
                                                                                                                                                                                                                                   place in America to move huge
                                                                                                                                                                                                                                   amounts of freight.
    Thomas Finkbiner explains the trend.                                                                                                  el for passengers. Railroads were
                                                                                                                                          not only unable to compete with
                                                                                                                                                                                yond domestic borders to Mex-
                                                                                                                                                                                ico and Asia. Supply lines be-
                                                                                                                                                                                                                                      As the North American rail-
                                                                                                                                                                                                                                   roads reversed their decline,
                                                                                                                                          rates and service; they were also     came longer, and goods import-                     gained market share, and down-




    Revival of the railroads
                                                                                                                                          largely unable to change their        ed by container began moving                       sized their systems, they were
                                                                                                                                          infrastructure by abandoning          inland on doublestack railcars,                    also better able to control vol-
                                                                                                                                          little-used track and facilities or   which allowed full trainloads                      umes and leverage prices. What
                                                                                                                                          merging with other railroads. By      to be moved between ports and                      the financial managers on Wall
                                                                                                                                          the 1970s, fully 25 percent of the    a single inland point. Goods                       Street, and the powerful inves-
                                                                                                                                          railroads in North America were       originally moved by rail on box-


                        P
                              rominent US investors            accomplished overland, a perfect      tion of goods. This economic         in bankruptcy and receivership.       cars at the turn of the century.
                              such as Warren Buffet and        venue for railroad technology.        power attracted the attention of                                           Then they switched to roads.
                                                                                                                                                                                                                     { Thomas Finkbiner }
                              Carl Icahn have recently
                        taken major ownership posi-
                                                               Efficiency in the railroad indus-
                                                               try is immediately dependent on
                                                                                                     both state and federal govern-
                                                                                                     ments. This led to regulation of
                                                                                                                                          Ownership is perhaps the greatest
                                                                                                                                          difference between North Amer-
                                                                                                                                                                                And now, with the advent of
                                                                                                                                                                                containerization and offshore        »Deregulation took
                                                                                                                                                                                                                     25 years to have
                        tions in North American rail-          grade level. Locomotives, cars,       North American rail rates and        ican and European rail systems.       production, they are coming
                        roads, and this is being taken as a    and their cargo are heavy and         routes in the early 20th century.    In America, so much money was         back to the railroads.
                        sign that the railroads are signifi-   difficult to handle up and down       This was the peak of railroad        required to buy land, build track,       So it took just over 25 years
                        cantly undervalued and have ex-
                        cellent potential. This is a major
                                                               the hilly terrain of North Ameri-
                                                               ca. The most even terrain occurs
                                                                                                     power in North America. Routes
                                                                                                     and capacity had been overbuilt
                                                                                                                                          and acquire rolling stock that
                                                                                                                                          financing was beyond individual
                                                                                                                                                                                for deregulation to have an im-
                                                                                                                                                                                pact on North American rail-
                                                                                                                                                                                                                     an impact in the
  Rail insider:
  Thomas Finkbiner,
                        inflection point in North Ameri-
                        can railroad valuation. What
                                                               next to rivers, and that is where
                                                               the eastern railroads in North
                                                                                                     because of the perception of this
                                                                                                     economic power; now railroads
                                                                                                                                          entrepreneurs. Thus, railroads
                                                                                                                                          became the catalyst in the for-
                                                                                                                                                                                roads, and that is what inves-
                                                                                                                                                                                tors are seeing now. There were
                                                                                                                                                                                                                     United States.«
  chairman of           secular changes account for this       America were built. Very few of       were shackled by government          mation of some of the first corpo-    also long-term changes which
  the Intermodal        trend? And what might it mean          these rivers are deep enough to       regulation at a time of great        rate structures, created by issu-     worked against carrying goods                      tors they advise, are seeing now
  Transportation
                        for European rail companies cur-       carry barge traffic.                  change in the marketplace.           ing stock to literally thousands      via truck over roads. Volume                       is the future of this pricing le-
  Institute, has
  worked in the US      rently contemplating the pros                                                   Whereas railroads once had        of people. Railroads effectively      on the North American high-                        verage in a capacity-constrained
  rail business for     and cons of privatization?             Unfortunately, rivers do not gen-     a virtual monopoly on the trans-     created the beginnings of public      way system rose rapidly in that                    environment, along with other
  most of his career.      The answers for both are            erally flow in a straight line, and   portation of goods and people,       stock markets and exchanges in        same 25-year period, although                      long-term advantages of rail-
                        rooted in geography, history,          therefore routes between major        the early 20th century was           the United States.                    eventually there was an almost                     road transportation, including
                        and government impact. Geo-            population centers are circu-         marked by the advent of the              In Europe, while most rail-       complete cessation in interstate                   energy efficiency in a period of
                        graphically, the North Ameri-          itous. In Europe, freight and         automobile and truck as major        roads were privately built, they      highway building and mainte-                       sustained rising prices for fuel.
                        can continent was settled east to      people historically have traveled     competitors to rail hegemony.        were later nationalized and be-       nance. (Today, American high-                         Because the North Ameri-
                        west, starting on the coasts. The      by water. Even today much of          The largest freight commod-          came state entities. As such, pas-    ways still struggle from lack of                   can rail experience is distinctly
                        navigable waterways in North           dense freight is moved European       ity hauled on North American         senger traffic became an overrid-     investment, and disrepair causes                   different than that of Europe, it
                        America are primarily north–           waterways. Population centers         railroads in the first years of      ing issue. Competition, either        delays and increased costs.)                       may not be practical to use the
                        south systems, and therefore           tend to be closer together so that    the 20th century was oil in          between railroads or among               At the same time, a new gen-                    North American model as an
                        entry into the interior had to be      transit on the river systems is       tank cars, but this was quickly      modes, was almost non-existent        eration of Americans failed to                     example of what happens to rail-
                                                               not as long as in North America.      diverted to pipelines.               to the point that European rail-      provide replacements for ag-                       roads when they are not owned
                                                                  Historically, the railroads           Manufactured goods, which         roads never hauled the majority       ing truck drivers, leading to a                    by the state.
      BIOGRAPHY                                                gained enormous economic              did not move in trainload quan-      of tonnage and became, of neces-      critical shortage today. Rapid                        One lesson that may be suc-

      Thomas Finkbiner                                         power by virtue of the fact that
                                                               their rates and service could de-
                                                                                                     tities, were more cheaply and
                                                                                                     flexibly handled by trucks. Rail
                                                                                                                                          sity, “light rail” systems. Mean-
                                                                                                                                          while the primary haulers of
                                                                                                                                                                                increases in fuel costs made
                                                                                                                                                                                railroads, which were five to six
                                                                                                                                                                                                                                   cessfully applied in Europe is
                                                                                                                                                                                                                                   that finished goods and manu-
                                                               termine the success of cities and     labor unions were intransigent       heavy freight became river and        times more fuel-efficient than                     factured commodities are a
      ■ Now: Thomas Finkbiner is chairman of the board         states. Even today, virtually all     in the face of these changes,        coastal barges.                       trucks, much more competitive.                     key to rejuvenating freight vol-
      of directors at the Intermodal Transportation            major North American cities           always demanding higher wag-             The beginning of the “re-         Finally, passenger service was                     umes. However, because of the
      Institute headquarted at the University of Denver,       are built on rail intersections or    es; and the management of the        vival” of rail in North America       effectively nationalized with                      overhead electrical propulsion
      in Colorado, USA.                                        at a terminus. Great fortunes         railroads, paralyzed by govern-      was the deregulation of the US        the creation of Amtrak, which                      systems in Europe, the North
                                                               were made, and market abuses          ment regulation, was unable or       railroad industry with the Rail-      allowed North American rail-                       American double-stack tech-
      ■ Then: Finkbiner has formerly served as presi-          were perpetuated, by the found-       unwilling to address the new         road Revitalization and Regula-       road managements to optimize                       nology is unlikely to offer the
      dent of Pacer Stacktrain; CEO of Quality Distribu-       ing economic families of North        economic reality. While shares       tory Reform Act of 1976, and the      their systems for freight traffic.                 same kinds of advantages. Inter-
      tion Inc., a major transporter of bulk chemicals in      America. The Rockefellers,            of tonnage moved by railroads        Staggers Rail Act in 1980. These      Previously, the presence of fast                   modal technologies are much
      North America; and as vice president-intermodal          Carnegies, and Vanderbilts used       did not fall precipitously in this   acts allowed faster depreciation      passenger trains, effectively                      more likely to fit the European
      at the Norfolk Southern Corporation.                     rail rates to bring about competi-    situation, shares of revenues to     of capital investments, and freed     running on the same network                        model when moving these com-
                                                               tive advantages in the distribu-      the railroads did.                   the railroad industry to right-       as freight trains, proved to be                    modities is contemplated.         ■

46 | LOGISTICS                                                                                                                                                                                                                                              LOGISTICS | 47
Milestones




                                                                                        On the way up: First appearance of Toyota
                                                                                        at the Chicago Auto Show 1959 (left). Right:
                                                                                        Production guru William Edwards Deming.




        Success – Japan style
    The Toyota Production System and lean production now lead the
   way around the world. Here’s how Japan set new industry standards.
                                                    [ Text ] Hartmut Albrecht




 T
                  he Americans were in-      Ishikawa, the chairman of JUSE and         cal industry, and the entertainment
                  strumental in Japan’s      the Japanese industrial organization       industry was added to the list in the
                  post-1945 industrial       Keidanren, introduced Deming to 21         1960s. Japan even quickly surpassed
                  boom. William Edwards      top managers in Japanese industry.         Western quality standards. Japanese
                  Deming, the founder        From that point on, Japan’s economic       industry supplied 190,000 cameras in
                  of Quality Manage-         ascent was in full flow.                   1950, compared with some two million
                  ment, was invited by                                                  from Germany. Ten years later, the
                                                                                                                                       Photos: Bettmann/Corbis, C. Karnow/Corbis, C. Mueller/Redux/laif



   the Japanese Union of Scientists and      In five years, Deming predicted, Japa-     ratio was 1.5 to 2.7 million. Since then,
   Engineers (JUSE) to speak at the Uni-     nese companies could conquer mar-          Japanese brands in this market have
   versity of Tokyo on 16 June 1950. The     kets all over the world. Inroads into      entered a league of their own.
   topic was quality control in industrial   the steel, chemical, and shipbuilding         However, it was in the automotive
   production. The audience, including       industries were quickly made. Japan        industry that the Japanese decided to
   Toyota founder Kiichiro Toyoda, was       increased its global market share in       start their production campaign. In
   familiar with Taylorism and Fordism,      shipbuilding from almost nothing to        1950, Japanese car manufacturers were
   the formulas for success in industrial    11 percent by 1955 – and to 46 percent     outstripped tenfold by their American
   mass production. But the Japanese         by 1980. Today, Japan, South Korea         counterparts in terms of production.
   paid more attention than their Ameri-     and China combined build more than,        Then Taiichi Ohno took over produc-
   can counterparts to develop Taylorist     80 percent of all freight ships; US        tion management at Toyota. In this
                                                                                                                                                                                                          Lean production:
   ideas to motivate employees, and to       shipyards no longer play a role in civil   engineer who had worked with textile                                                                              Boeing adapts
   the impact their behavior can have        shipbuilding, and the Europeans are        machine parts for Toyota since 1932,                                                                              processes from
   on the production result. Deming’s        focused on special ships. There was        Toyoda and his nephew Eiji had found                                                                              the automotive
   presentation went down well. Kaoru        similar success in the photo and opti-     an ingenious partner. Ohno started >                                                                              industry.


48 | LOGISTICS
Milestones
                                                                                                                                                                                                                                                                                                                                    ?               ?
                                                                                                               Pull principle: BMW in
                                                                                                            Leipzig relies on supplies
                                                                                                                                                                                                                           SPECIFIC
                                                                                                                                                                                                                           MODULE                    +        COMMON
                                                                                                                                                                                                                                                              FRAME                   =       MANY
                                                                                                                                                                                                                                                                                              VARIANTS                 MYSTERIES OF WORLD TRADE
                                                                                                                                                                                                                                                                                                                                         PART 3
                                                                                                          that are accurately steered.




                                                                                                                                                                                                                                                                                                                                Security
                                                                                                                                                                                                                                                                                                                                 deluxe
                                                                                                                                                                                                                                                                                                                          While customs authorities
                                                                                                                                                                                                                                                                                                                             flex their muscles,
                                                                                                                                                                                                                                                                                                                            the economy has to
                                                                                                                                                                                                                                                                                                                               pick up the tab.



                                                                                                                                                                                                                                                                                                                       T
                                                                                                                                                                                                                                 2-3 days delivery                 One-day assembly         2-3 days dispatch                     he war on international terrorism
                                                                                                                                                                                                                                                                                                                                  has to be fought on many fronts,
                                                                                                                                                                                                                         CUSTOMIZED PRODUCTION                                                                                    says the US government, and one

                                                                                                                                                                                                                         The modular method                                                                                       of these fronts is customs. Politi-
                                                                                                                                                                                                                                                                                                                       cal pressure from Washington means that
                                                                                                                                                                                                                                                                                                                       Europe is now adopting the concept of the
                                                                                                                                                                                                                         ■ The magic words are           products. Researchers are        bly methods. Above, how      Authorized Economic Operator (AEO).
                                                                                                                                                                                                                         “made to order.” Modular        recommending that the            modules could work with      From January 2008, companies will be able
   Industrial revolution:
   Modern methods steered                                                                                                                                                                                                production offers buyers        automotive industry dras-        driving compartments.        to display a certificate to show that they
   Japan’s shipbuilding and                                                                                                                                                                                              an easy way to customize        tically rethinks its assem-      www.ilipt.org                are an AEO, provided that they fulfill four
   steel industries to the top.                                                                                                                                                                                                                                                                                        basic criteria: appropriate compliance with
                                                                                                                                                                                                                                                                                                                       customs regulations, satisfactory book-
                                                                                                                                                                                                                                                                                                                       keeping, solvency, and adequate safety
                                                                                                                                                                                                                                                                                                                       standards. According to the EU, the aim is
   to develop his own set of principles.       (kaizen), automatic error proofing         of the US armed forces and with assets                                                                                         the “first tier suppliers.” These in turn        car manufacturers waste $80 billion          to establish the international supply chain
   Known as the Toyota Production Sys-         (jidoka), and the avoidance of waste       worth $56 billion, sought advice from                                                                                          obtain products from suppliers at the            every year by building vehicles that         as a network of certified, trustworthy trade
   tem (TPS), they have since been cop-        (muda). It’s not output that counts,       Toyota in 2006 to enhance its logis-                                                                                           second, third, and fourth levels. The            nobody wants. The automotive indus-          partners. The large amount of bureaucracy
   ied and enhanced around the world. In       but rather quality and customer re-        tics. Schenker’s megahub at the Air-                                                                                           resulting global networks are operated           try is only “lean” until the car is built,   and financial outlay needed to acquire the
   1980, Toyota and other Japanese man-        quirements. Those involved in the          port Logistics Park of Singapore has                                                                                           by large logistics companies that form           criticized participants at a symposium       license is said to be worth it, with benefits
   ufacturers outperformed many of their       MIT study coined the phrase “lean          been accommodating an “Integrated                                                                                              an integral part of this industry and            in Montreux, Switzerland, in March.          such as security-related customs checks
   Western competitors in terms of qual-       production” to describe what they had      Materials Management” for Boeing                                                                                               play to their strengths on all transpor-         According to these critics, the much-        and simplified importing according to cus-
   ity and productivity. The automobile        found. And those who could produce         Commercial Airplanes since March                                                                                               tation routes. Supply chain manage-              valued Toyota process is simply Ford’s       toms regulations. The catch is that so far
   world now began to think the Japanese       cars – with their 30,000 individual        2007 – planned and set up according to                                                                                         ment is becoming the backbone of any             mass production taken to the extreme.        these advantages only apply in the EU,
   way and, for the first time, the Japa-      parts, by far the most challenging se-     the principle of lean production. Fifty                                                                                        mass production, whether it be in the            In the future, there will be demand for      and not in the United States, where this
   nese auto industry topped the United        ries product – better and more cheap-      years after its implementation at Toy-                                                                                         automotive, aviation, electronics or             greater dynamics and customer orien-         initiative was launched. The US rejects
   States as the world’s largest manufac-      ly than their competitors, were also       ota, TPS is still proving productive.                                                                                          electrical appliances industries.                tation – as we can see happening in the      the idea of facilitation associated with re-
                                                                                                                                         Photos: Horace Bristol/Corbis(2), DB AG Graphics: KircherBurkhardt Infografik


   turer. Today, Japan accounts for some       ahead in almost every other industry.      Even manufacturers such as the au-                                                                                                                                              retail industry, for example.                ciprocal recognition. But this is a problem,
   20 percent of global production (cur-          To this day, TPS has remained the       tomotive supplier Bosch follow these                                                                                           However, two aspects of all this mean               Lean production also depends on           as the help is needed in order to offset the
   rently corresponding to around 16 mil-      blueprint for higher productivity,         Japanese rules. After implementing                                                                                             that lean production is only success-            volume growth and can only cope to           emerging additional expense that experts
   lion vehicles). And, in the first quarter   better quality, and satisfied custom-      such strategies, joint venture company                                                                                         ful if implemented rigorously. Take              a degree with fluctuations in produc-        estimate will cost the economy “several
   of 2007, Toyota replaced General Mo-        ers – and not only for manufacturers.      Mico Bosch, based in Bangalore, India,                                                                                         the aviation industry, for example. In           tion volumes as a result of market ac-       million euros.” According to the DSLV
   tors as number one in the industry.         Since 2004, industry giant JAL Cargo       managed to reduce storage times by up                                                                                          this sector, the main manufacturers              tivity. The “built to order” system (see     (Deutscher Speditions- und Logistikver-
                                               has been adapting its organization         to 50 percent and to subcontract the                                                                                           such as Boeing and Airbus are con-               graphic above) shows how the indus-          band – German Freight Forwarding and
   A study on the automotive industry car-     and processes at Tokyo Narita Air-         manufacture of components.                                                                                                     stantly handing over more produc-                try can give production processes new        Logistics Association), the initiative does
   ried out by the Massachusetts Insti-        port, the second-largest cargo airport         For logistics, lean production is                                                                                          tion orders to suppliers and are thus            momentum and thus solve its own              not make much sense anyway: “Smugglers
   tute of Technology (MIT) shows why          in the world after Hong Kong, accord-      both a curse and a blessing. Companies                                                                                         streamlining their supply chain. How-            problems. PC manufacturer Dell, for          don’t declare their cigarettes and terrorists
   the Toyota Production System made           ing to recommendations of a team           are increasingly acquiring longer pro-                                                                                         ever, problems at supplier level can             example, has been using it for years.        don’t say that they’re carrying bombs,”
   Japan’s rise in this field possible. The    from Toyota. The result has been to        cess chains – from product develop-                                                                                            quickly become a risk for manufactur-            With this system, customers can have         comments a source at the association in
   most important elements of TPS are          increase productivity by ten percent.      ment through supply, production, and                                                                                           ers – as was the case with the Airbus            their product tailor-made right up to        Bonn. Members of the DSLV are now ne-
   the continuous flow of materials with       The Transportation Command of the          distribution to waste disposal. The in-                                                                                        380. Elsewhere, many industries are              just before its delivery. It also means      gotiating with the Ministry of Finance for
   supply on demand (pull principle),          US Department of Defense, respon-          dustry is outsourcing production areas                                                                                         now producing too many goods. Ac-                that in the future logisticians will be      a “tolerable structuring” of the regulations
   constant striving for improvement           sible for the entire distribution system   and relies on large, efficient suppliers –                                                                                     cording to a McKinsey assessment,                called upon more than ever.             ■    as they are applied in Germany.             ■

50 | LOGISTICS                                                                                                                                                                                                                                                                                                                                     LOGISTICS | 51
Power                                                                                                                Power
                       LÖTSCHBERG TUNNEL


          Underground
           track to the
              future
        Switzerland sets a standard for transport
           policy with the new Alpine tunnel.
                                  [ Text ] Olaf Krohn




  T
              he Swiss have tunnel vi-       el. The track’s highest point lies 828
              sion – and they are proud of   meters above sea level – 400 meters
              that fact. “We have moved      lower than the old mountain route that
              a mountain to create a Swit-   was opened back in 1911. This saves
              zerland that is exactly how    both energy and time.
   we imagine it,” declared Swiss Fed-           Designed for trains traveling at
   eral Council member and Minister of       speeds up to 250 kph, the route cost in
   Transport Moritz Leuenberger when         the region of €2.6 billion to construct
   he officially opened the new Lötsch-      and will go down in history as the first
   berg base tunnel in June this year.       high-speed rail line in Switzerland. It’s
   With 34.6 kilometers of darkness,         the world’s longest mountain tunnel
   it’s one tunnel that you’d rather be      and the third-longest tunnel of any
   leaving than entering, but it’s a mile-   kind, after the Japanese Seikan tunnel
   stone for Switzerland, Europe, the        (54 km) and the Eurotunnel under the
   Alps – and for the climate.               English Channel (50 km).

                         { Moritz Leuenberger, Minister of Transport }

                         »We have moved a
                         mountain to create
                         a Switzerland that is
                         how we imagine it.«
   In just eight years of construction,      However, this will only be a tempo-
   tunnel borers and miners blasted a        rary honor for Lötschberg. A bit fur-
   “flat roadway” into the Lötschberg        ther to the east, the Swiss are already
   mountain and straight through the         drilling out another route with colos-
   Alps between the cantons of Berne         sal dimensions. At 57 kilometers in         Standing by: In the
   and Valais. For the first time in his-    length, the Gotthard base tunnel will       next few months, all the
   tory, both passengers and freight can     be the longest of its kind – and will       technical systems will be
   now cross the main Alpine ridge at        finally banish the image of the Alps as     tested. But for now the
   less than 1,000 meters above sea lev-     a high, mountainous traffic obstacle. >     new tunnel lies empty.


52 | LOGISTICS
                                                                                                                                                                                                                                                                                                                                                                          Power
Slowly but surely:                                                                                                                                                                                                                                                        { Sylke Hussmann, Intermodal }
The giant drill works
its way through the
living rock.                                                                                                                                                                                                                                                              »Forecast growth
                                                                                                                                                                                                                                                                          means that it
                                                                                                                                                                                                                                                                          is essential to
                                                                                                                                                                                                                                                                          increase capacity.«
                                                                                                                                                                                                                                                  Trains from Stuttgart, Basel or Zurich       ics have described it. Even as it stands,
                                                                                                                                                                                                                                                  will only have to climb 550 meters to        the tunnel remains a crucial part of the
                                                                                                                                                                                                                                                  reach Italy. By comparison, Munich           whole NEAT network which was orig-
                                                                                                                                                                                                                                                  lies 519 meters above sea level.             inally accepted by the Swiss. Running
                                                                                                                                                                                                                                                     The two base tunnels, at both             under Switzerland’s second-longest          Road finances rail: Income from heavy-duty
                                                                                                                                                                                                                                                  Lötschberg and Gotthard, are creat-          Alpine corridor, from Lötschberg to         traffic has flowed directly into the tunnel.
                                                                                                                                                                                                                                                  ing the capacities required to stem the      Simplon, the tunnel had been request-
                                                                                                                                                                                                                                                  flow of trucks in high, mountainous ar-      ed by the cantons in West Switzerland       A QUESTION OF MONEY
                                                                                                                                                                                                                                                  eas. “We, as Swiss, have had to explain
                                                                                                                                                                                                                                                  to flat-lying countries that it’s not that
                                                                                                                                                                                                                                                                                               and Valais. This in turn paved the
                                                                                                                                                                                                                                                                                               way for the longer Gotthard tunnel          The Swiss way of
                                                                                                                                                                                                                                                  easy to build yet another highway in
                                                                                                                                                                                                                                                  the narrow Alpine valleys,” says Hans
                                                                                                                                                                                                                                                                                               to be constructed on the eastern side
                                                                                                                                                                                                                                                                                               of the country.                             public finance
                                                                                                                                                                                                                                                  Martin Schaer, a spokesperson for                The decisiveness with which Swit-
                                                                                                                                                                                                                                                  Schweizer Bundesbahn, the Swiss na-          zerland is forcing railway lines through    ■ Improvements to the Swiss rail
                                                                                                                                                                                                                                                  tional rail company. With the billion-       the mountains is also putting pressure      infrastructure have cost some 30 billion
                                                                                                                                                                                                                                                  euro project NEAT (Neue Eisenbahn-           on its neighbors to the north and the       francs. In 1998, the country agreed on a

       Debate surrounding the construction of the
                                                                                                                                                                                                                                                  Alpentransversalen or “New Alpine            south, since the two mega-tunnels are       finance package to modernize the rail
                                                                                                                                                                                                                                                  Railway Links”) and the extensive            by no means the only project under-         infrastructure. The total came to around
                                                                                                                                                                                                                                                  modernization of their network, the          way along Trans-European Corridor           €18.2 billion. In addition to the two new

       tunnel has been anything but straightforward.                                                                                                                                                                                              Swiss are getting down to business
                                                                                                                                                                                                                                                  with an issue that they heaved into the
                                                                                                                                                                                                                                                                                               24 that links Rotterdam to Genoa.
                                                                                                                                                                                                                                                                                                   In Germany, the Karlsruhe–Basel
                                                                                                                                                                                                                                                                                                                                           Alpine links, this money is to be invested
                                                                                                                                                                                                                                                                                                                                           in an expansion of the existing rail
                                                                                                                                                                                                                                                  constitution via a 1994 referendum:          line is being expanded to four tracks,      network, connecting it to the European
                                                                                                                                                                                                                                                  “Cross-Alpine freight traffic from bor-      with the 11-kilometer Katzenberg tun-       high-speed network, and improving
                                                                                                                                                                                                                                                  der to border will take place by rail.” At   nel in South Baden being the largest        protection against noise.
                                                                                                                                                                                                                                                  the time, this policy made Switzerland       single project. Italy, in the long term,
                                                                                                                                                                                                                                                  something of a curiosity in Europe.          wants to split passenger and freight        ■ Two-thirds of this funding comes
                                                                                                                                                                                                                                                  The Swiss proved, however, to be far-        traffic and have them running on            from the heavy-duty traffic toll that was
                                                                                                                                                                                                                                                  sighted in terms of both transport poli-     separate routes. In a recent interview,     introduced in 2000. In this system of
                                                                                                                                                                                                                                                  cy and the environment.                      however, Mauro Moretti, head of the         tariffs, trucks have to pay a fee according
                                                                                                                                                                                                                                                                                               Italian state railway FS, ruffled a few     to their overall weight and emissions class
                                                                                                                                                                                                                                                  Nevertheless, despite the simplic-           feathers by suggesting a long-term          for each kilometer covered on all roads.




                                                                                                                                                     Photos: BLS Alptransit AG(2), picture-alliance/dpa(3), M. Lautenschläger, pixsil.com/VISUM
                                                                                                                                                                                                                                                  ity of the Lötschberg base tunnel that       strategy of directing freight traffic       In 2000 alone, the heavy-duty traffic
                                                                                                                                                                                                                                                  stands now, ready for use, the debate        from the north around overloaded Mi-        toll earned 1.45 billion Swiss francs for
                                                                                                                                                                                                                                                  surrounding its construction has been        lan and strengthening the Simplon–          the state.
                                                                                                                                                                                                                                                  anything but straightforward. The            Lötschberg corridor to the west of the
                                                                                                                                                                                                                                                  Swiss have been arguing over the prog-       city. The route through the Gotthard        ■ This huge investment makes
                                                                                                                                                                                                                                                  ress and financing of the project ever       tunnel, however, with its scheduled         Switzerland the European league leader
                                                                              Inside and out: Construction workers coordinate a crane at the south                                                                                                since the early 1980s. Original plans        260 freight trains per day, runs di-        when it comes to the financing of large-
                                                                              entrance, close to a bridge over the Rhone (above), while colleagues                                                                                                for a double tunnel, each side with two      rectly to Milan. “We are assuming that      scale infrastructure projects. Another
                                                                              move materials through a gallery of the base tunnel (below).
                                                                                                                                                                                                                                                  tracks, were significantly downsized         two-thirds of future freight traffic will   possible source of large-scale funding
                                                                                                                                                                                                                                                  because of rising costs. Now there           go through the Gotthard corridor and        is PPPs (public private partnership).
                                                                                                                                                                                                                                                  is just one tunnel, with only a single       one third through the Lötschberg–           A PPP involves a cooperation between
                                                                                                                                                                                                                                                  track for two-thirds of its length. Work     Simplon corridor,” says Max Fried-          public authorities and private companies
                                                                                                                                                                                                                                                  on its companion was stopped 25 kilo-        li, director at the Berne Ministry of       to complete infrastructure plans or new
                                                                                                                                                                                                                                                  meters into the mountain. As a result,       Transport. “I have no doubt that the        services for the general public. In Europe,
                                                                                                                                                                                                                                                  Lötschberg’s capacity is only a third        Italians will keep their promise.”          “we heavily rely on PPPs for investment
                                                                                                                                                                                                                                                  of that which a double-tracked double            Swiss measures to move freight          in infrastructure and public services,”
                                                                                                                                                                                                                                                  tunnel would have made possible.             traffic from road to rail are not limited   explains Charlie McCreevy, the EU
       Rough conditions: In some difficult rock formations, workers have to                                                                                                                                                                           Despite this, the tunnel is hardly a     to the construction of tunnels and the      commissioner for the single European
       secure the tunnel walls with heavy equipment.                                                                                                                                                                                              “half-constructed ruin,” as some crit-       vague hope that the shipping industry >     market and services.

   54 | LOGISTICS                                                                                                                                                                                                                                                                                                                                                         LOGISTICS | 55
                                                                                                                                                                                                                                                                                                                                              Power
             ALPINE TRAFFIC                                                                                            Karlsruhe


             Three cargo
             corridors from
             north to south
                                                                                                                                                GERMANY


                                                                                                                                                                           Munich
             ■ The Lötschberg tunnel is only one of
             three important rail corridors for freight                                              Basle
             traffic that run between northern Europe
                                                                                                                        Zurich
             and Italy. The Swiss have established
             these axes through clever traffic policies
             and major financial investment, strength-                                    Berne                                                                  AUSTRIA                Brenner
             ening the role of the railway over the road.
                                                                       SWITZERLAND
             In a few years, new Brenner and Gotthardt                                                                        Gotthard
             tunnels will unburden the Alps even more.                     Lötschberg


                 FINANCING
              30 billion Swiss francs from taxes and heavy vehicle
              fee, in billion sFr

                                                                                                                                                                                    N
              Value added tax              Heavy vehicle fee
              3                                    19.5                                                                                                                         50 KM               Moving through mountains: In the Swiss Canton of Valais, only the south portal complex (left) gives any clue to the tunnel’s existence.
                                                                                                    Novara
                                                                                                                              Milan

              Mineral oil tax
                      7.5                                                                                                                                        Verona                             will happily shift to these environ-              for trucks weighing 3.5 tons or more,             The heavy-duty traffic toll extends
                                                                                                                                                                                                    mentally friendly traffic routes. The             the number of truck journeys has sig-             across large sections of the two main
                                                                                                                                  ITALY
                                                                                                                                                                                                    incorporation of the Alpine Protection            nificantly reduced. Over 1.4 million              NEAT projects. For the transit of a
                                                                                                                                                                                                    Article into the Swiss constitution is            journeys were counted in 2000; the                40-ton trailer truck from Basel to Chi-
                                                                                                                                                                                                    being accelerated by further measures             figure was 1.18 million in 2006.                  asso, the tax authorities collect on av-
                 USE                                                      OVER THE ALPS                                                  MODAL SPLIT                                                such as subsidies, tolls, and banning                As a result, the move from road to             erage around €180. A further increase
              30 billion sFr for tunnel construction and route         Traffic per corridor, in percent of volume                     in percent                                                    truck journeys by night. The results              rail not only brings relief to mountain           in the toll is anticipated for 2008. Dis-
              development
                                                                                                                                                                                                    have been remarkable. While other                 valleys and their inhabitants in terms            cussions regarding transport policy in
              Connection to high                                          Gotthard        Brenner       Lötschberg                      Rail            Road
                                                          Bahn 2000                                                                                                                                 parts of Europe – particularly along              of noise levels, as well as reducing              Switzerland currently revolve around
              performance                                 44
              European network 4
                                                                           48.4
                                                                                                                                                   79                                               the Brenner corridor, the most impor-             air pollution and the space required              a proposed regulatory instrument: the
              Noise                                                                                                                                                        69                       tant North–South connection across                for new roads, it is also effective cli-          Alpine Transit Exchange. This instru-
                                                                                  38.7                   40.3 37.3
              remediation 7
                                                                                                                                                                                                    the Alps – moan about the dispropor-              mate protection. Production of the                ment is based on the idea of restricting
              AlpTransit
              Lötschberg 11            %                                                                               22.4
                                                                                                                                                                                                    tionately high growth of road traffic,            greenhouse gas carbon dioxide is                  truck flows through the mountains by
                                                                                                                                                                    31
                                                                                                                                                         21
                                                                                                                                                                                                    Switzerland has reversed the trend.               rarely high for rail transit, as up to 70         ensuring that a finite number of per-
                                                          AlpTransit                      12.9
                                                          Gotthard                                                                                                                                  Since introducing the LSVA (the                   percent of the traction energy stems              mits are issued according to the prin-
                                                          34                 Rail total                      Railion                               Switzerland       Austria                        Swiss heavy-duty traffic toll) in 2001            from hydroelectricity.                            ciple of supply and demand.               >

                 GEOLOGICAL LONGITUDINAL PROFILE LÖTSCHBERG BASE TUNNEL
                1 5 Juli 1999                                                2 4 April 2004                                            3 28 April 2005                                                4 13 December 2002                            5 11 April 2002                                           6 26 March 2006
               First blasting at Mitholz base                               Difficult rock blocks the southern                        Main cut-through in Lötschberg                                 First cut-through in Lötschberg               Tunnel drill at Steg runs into                             A karst break occurs near the portal
               for the Lötschberg base tunnel                               tunnel at Mitholz                                         base tunnel in Mitholz                                         base tunnel between Ferden and Steg           rock containing asbestos. Tunneling                        at the Steg access gallery
                                                                                                                                                                                                                                                   is interrupted


                2,500                                                                                                                                                                                                                                                                                                                           2,500
                                                   Mitholz                                                                                                                                        Lötschberg                      Ferden                                                                      Steg
                                                access gallery                                                                                                                                                                 access gallery                                                             access gallery
                2,000                                                                                                                                                                                                                                                                                                                           2,000

Northern        1,500                                                                                                                                                                                                                                                                                                                           1,500 South
portal                         Elsighorn                                                                                                       Eggeschwand                                                                                                                                                                     Gampel-                  portal
Tellenfeld                  southeast ridge                                                                                                                                                                                                                                                                                   Baltschieder              Raron
                1,000                                                                                                                                                                                                                                                                                                                           1,000




                                                            1                                       2                                              3                                                                                                       4                                 5                                6
                                                                                                                                                                                                                                                          Total tunnel length : 14,612 m
                                                                                                                                                                                                                                                                                                                                             Power
It cost around €2.6 billion to                                                                                                                                                                                         So that their transport policy would        EU. The final decision regarding con-

construct the third-longest                                                                                                                                                                                            not sideline Switzerland international-
                                                                                                                                                                                                                       ly, the Berne government safeguarded
                                                                                                                                                                                                                                                                   struction is supposed to take place in
                                                                                                                                                                                                                                                                   2009. Under optimum conditions, the         A model for the
                                                                                                                                                                                                                       their road-to-rail strategy by setting up   tunnel will be complete in 2022.
                                                                                                                                                                                                                                                                                                               rest of Europe
tunnel in the world.                                                                                                                                                                                                   a contract with the European Union.
                                                                                                                                                                                                                       In return they accepted an increase in      With the Lötschberg tunnel now ready        Dr. Christoph Wolff, Railion board
                                                                                                                                                                                                                       truck weight limits from 28 to 34 tons,     for use, there will at least be one Al-     member, discusses the new tunnel
                                                                                                                                                                                                                       and the agreement made in 2005 to in-       pine base tunnel available for the
                                                                                                                                                                                                                       crease this figure to 40 tons in the EU.    next ten years. From December, up
                                                                                                                                                                                                                           Switzerland also agreed that Rail-      to 80 freight trains will be able to pass   What prospects are opened up for Railion
                                                                                                                                                                                                                       ion and other rail freight companies        through it each day. However, the           by the Lötschberg tunnel?
                                                                                                                                                                                                                       could manage transportations via            Lötschberg tunnel will not only have        The number of daily transit freight
                                                                                                                                                                                                                       Gotthard up to the Italian border by        to prove itself as a change in concept;     journeys will increase from 90 today to
                                                                                                                                                                                                                       themselves. On both the Gotthard            it will also have to support the rapidly    110 in the year 2010, and to 130 in 2015.
                                                                                                                                                                                                                       route and the Lötschberg–Simplon            increasing traffic volumes.                 This increase in capacity will help us
                                                                                                                                                                                                                       corridor, Deutsche Bahn is working              “If we use current growth figures       to cope with future rises in traffic
                                                                                                                                                                                                                       with the Swiss company BLS Cargo,           to forecast the coming years, it is going   volumes on the North–South corridor
                                                                                                                                                                                                                       in which it also has a 20 percent share-    to be essential to increase capacity,”      through Switzerland.
                                                                                                                                                                                                                       holding. Every week, 320 transit trains     says Sylke Hussmann, North-South
                                                                                                                                                                                                                       are operated through Switzerland by         corridor manager at Intermodal. The         How will it change the way Railion uses
                                                                                                                                                                                                                       BLS Cargo in cooperation with DB.           DB subsidiary specializing in com-          its access to the Swiss market?
                                                                                                                                                                                                                       Rail freight transport across the Alps      bined transportation, Intermodal op-        We operate on two corridors through
                                                                                                                                                                                                                       to Italy is characterized by intense        erates more than 50 trains daily from       Switzerland: on the Lake Constance
                                                                                                                                                                                                                                                                                                               line to Austria, and on the Gotthard
                                                                                                                                                                                                                                              { Dieter Bambauer }                                              route to Italy. While we are responsible

                                                                                                                                                                                                                                              »Controlling transport
                                                                                                                                                                                                                                                                                                               for just 30 or so trains per week as
                                                                                                                                                                                                                                                                                                               Railion Deutschland in Switzerland,
                                                                          First the noise, then the party:                                                                                                                                                                                                     it contributes to greater expertise and
                                                                          On 28 April 2005, the breakthrough
                                                                          is achieved (above). Two years later,                                                                                                                               policy according to                                              efficiency, and shows that our busi-
                                                                                                                                                                                                                                                                                                               ness model works. However, the model
                                                                                                                                                                                                                                              cost considerations is
                                                                          residents of Frutigen in the Canton
                                                                          of Berne celebrate the opening of the                                                                                                                                                                                                can’t replace the cooperation we have
                                                                          nearby tunnel (below).                                                                                                                                                                                                               with foreign rail companies. On both

                                                                                                                                                                                                                                              the right way to go.«                                            transit corridors through Switzerland,
                                                                                                                                                                                                                                                                                                               Gotthard and Lötschberg–Simplon,
                                                                                                                                                                                                                                                                                                               we currently transport in the region of
                                                                                                                                                                                                                       competition between DB/BLS Cargo            Germany, Benelux, and Scandinavia to        13 million tons a year, compared with
                                                                                                                                                                                                                       and Schweizer Bundesbahn Cargo.             Italy, and has been recording growth        8 million tons on the Brenner corridor
                                                                                                                                                                                                                          Swiss transport policy has effec-        rates for these transportations of ten      through Austria. All these routes are
                                                                                                                                                                                                                       tively brought an end to the dramatic       percent and more for years.                 experiencing growth in volumes.
                                                                                                                                                                                                                       increase in cross-Alpine freight trans-        “Controlling transport policy ac-




                                                                                                                  Photos: BLS Alptransit AG(2), picture-alliance/dpa(4), DB AG Graphics: KircherBurkhardt Infografik
                                                                                                                                                                                                                       portation by road – with the result that    cording to cost considerations is the       What do you think about the Swiss policy
                                                                                                                                                                                                                       now two-thirds of all freight is sent by    right way forward,” adds Dieter Bam-        of moving goods traffic from road to rail?
                                                                                                                                                                                                                       rail via Gotthard and Lötschberg. Fur-      bauer, head of Spedition Hangartner.        The country’s transportation policy is
                                                                                                                                                                                                                       ther to the east, on the Brenner cor-       This Schenker subsidiary, based in          a model for the rest of Europe. Unfor-
                                                                                                                                                                                                                       ridor, the modal split is the other way     Zurich with branches in ten coun-           tunately, Switzerland is yet to adopt all
                                                                                                                                                                                                                       around. Along the most important            tries, specializes in combined trans-       European rail directives. However, the
                                                                                                                                                                                                                       Alpine pass to Italy, the market share      portation and operates its own block        Federal Transportation Office’s admin-
                                                                                                                                                                                                                       of rail transportation has shrunk by        train network with a focus on traffic       istrative practice is characterized by
Finishing line: On 24 July 2006, workers weld the last two pieces of                                                                                                                                                   25 percent in the past few decades.         from Scandinavia to central Europe          the principle of freedom from discrimi-
rail together (above). The tunnel is now passable for its entire length                                                                                                                                                   Plans for a 57-kilometer railway         and Italy. “I completely understand         nation. We are very satisfied.
and test runs soon commence (below).
                                                                                                                                                                                                                       base tunnel from Innsbruck to Brix-         the transportation policy adopted by
                                                                                                                                                                                                                       en in South Tyrol have been sitting         Switzerland. Due to its geographic          www.railion.com
                                                                                                                                                                                                                       around for decades, but the project         location, it has been used as a transit
                                                                                                                                                                                                                       hasn’t progressed any further than test     country for a long time without peo-
                                                                                                                                                                                                                       drills. That could soon change. In mid-     ple really thinking about it,” explains
                                                                                                                                                                                                                       July, the transport ministers of Italy,     Bambauer. However, now the Lötsch-
                                                                                                                                                                                                                       Austria, and Germany signed a decla-        berg tunnel is complete, Switzerland
                                                                                                                                                                                                                       ration of intent in Vienna regarding        has finally bucked the traffic trend. ■
                                                                                                                                                                                                                                                                                                                                    Satisfied: Railion’s
                                                                                                                                                                                                                       construction of the tunnel. The cost                                                                         Dr. Christoph Wolff
                                                                                                                                                                                                                       estimate is €6 billion, with a third each   www.hangartner.com                                               is happy with Swiss
                                                                                                                                                                                                                       coming from Austria, Italy, and the         www.db-intermodal.com                                            transport policy.

                                                                                                                                                                                                                                                                                                                                            LOGISTICS | 59
                    GOOD WINE
                     CAN WAIT
                     Nothing is more completely defined
                      by its geographic origin than wine.
                    Those who love it must put their faith in
                    how it is transported around the world.
                          But are they right to do so?
                                [ Text ] Christoph Schomberg




Business for
connoisseurs:
A Zurich wine
merchant stands
outside his shop.




                                                                LOGISTICS | 61
Solutions

   Small hard-working family businesses are the
                                                                                                                                                                                                                                          these also demonstrate how relatively
                                                                                                                                                                                                                                          insignificant wine has hitherto been in
                                                                                                                                                                                                                                          Chinese society and culture. Between

   backbone of global wine production.                                                                                                                                                                                                    2004 and 2005, however, wine con-




  W
                                                                                                                                                                                                                                          sumption rose by a considerable 13 per-
                                                                                                                                                                                                                                          cent in this country.
                              inegrowers                Lorenz. The four hectares yield an av-         happy to be at your service outside                                                                                                   For the majority of the billion-plus
                              are a thrifty             erage of 30,000 liters of wine each year       main hours. So please ring the bell at                                                                                             Chinese, wine from overseas remains
                              breed. The                for the winegrower. At the upper end           any time!”                                                                                                                         an exotic product. However, among
                              desire to                 of the spectrum, there are also large-            The industry has changed dramati-                                                                                               economic and social climbers, con-
                              save starts               scale producers such as Schloss Johan-         cally in the past two decades. For ex-                                                                                             sumption of fine vintages is on the
                              with how                  nisberg at Rheingau with an annual             ample, in Germany, up until the 1970s,                                                                                             rise, signaling how well things are go-
                              they move                 turnout of 900,000 bottles.                    the market was all about French, Ital-                                                                                             ing, even in the expensive luxury wine
   through their vineyards. They don’t                     Smaller winegrowers such as                 ian, and home-grown varieties. From                                                                                                sector. Top-notch eateries are hastily
   walk, they literally place one foot                  Lorenz are the backbone of global wine         the 1980s, Californian wines increas-                                                                                              stocking their cellars with high-qual-
   in front of the other. “Here we have                 cultivation – family businesses that           ingly complemented the selection and,                                                                                              ity international wines. And so, as if
   mountain slopes at 50 degrees on aver-               work hard to achieve their yields. For         in the 1990s, wines from producers                                                                                                 it were the most natural thing in the
   age; in some places it’s even 70,” says              such producers, it’s important for their       in South America and Australia also                                                                                                world, wine connoisseurs at Tian Di Yi
   Joachim Lorenz. That means they have                 wine to be in good hands during its            joined the fold.                                                                                                                   Jia, one of the best restaurants in Bei-
   to economize energy.                                 journey to the customer. “If, like us,            Not only has the quality of wine                                                                                                jing, can wash down their meals with a
       The winegrower from Boppard am                   you spend a minimum of 12 hours a              reached a high level, but the quantity                                                                                             Chateau Chambeau Lussac Saint-Emil-
   Rhein, Germany, works in an idyllic                  day on your feet, the rest of the process      consumed globally has also increased.                                                                                              ion or a 1994 Petrus Pomerol at a mere
   spot. The Upper Middle Rhine Valley                  must also be perfect,” says Lorenz.            Between 2001 and 2005, more than                                                                                                   €1,600 per bottle.
   between Loreley and the area known                   “Otherwise, all the other hard work            30 billion 0.75-liter bottles of wine                                                                                                 Conversely, Chinese wines are
   as the Deutsches Eck, where the Rhine                will have been in vain.”                       found their way to consumers around                                                                                                not well known in Europe. Under the
   meets the Mosel, is the most tradition-                                                             the world. According to a recent study                                                                                             label Great Wall Red Wine and to the
   al wine-growing area in Germany. Here                The wine logistics chain starts where          carried out by the British market                                                                                                  knowledge of few people, the Chinese
   in Bopparder Hamm, a fresh Riesling                  there aren’t any transport facilities          research institute International Wines                                                                                             export their wines, which are grown
   flourishes on the shale ground. There                in place: at the winegrower’s house.           and Spirits Records, further growth                                                                                                in the shadow of the Great Wall.
   are 75 hectares of wine-growing land                 Wine is one of the few quality products        of 4.8 percent is expected by 2010.                                                                                                Deutsche Bahn subsidiary Schenker is
   on the steep slopes of this mountain                 that end users can still buy directly          That corresponds to a total volume of                                                                                              responsible for their transportation.
   location; the Lorenz vineyard has oc-                from the producer. This is the case at         almost 32 billion bottles.                                                                                                            In June 2007 at the VinExpo trade
   cupied four of them for generations.                 Ablassgasse 4 in Boppard, where the               The Asian market is also beginning                                                                                              fair in Bordeaux, market experts
   “Our family tree goes back almost                    Lorenz vineyard receives its private           to acquire a taste for wine – especially                                                                                           predicted enormous growth potential
   300 years,” says the winegrower. The                 customers. A small window next to              China. In the wake of the economic                                                                                                 for China and Russia. Both countries
   extreme location of the vines isn’t for              the entrance door displays the compa-          boom, wine exports to the Middle                                                                                                   have a good chance of entering the top
   everyone. “You must be born on these                 ny’s products and, in a down-to-earth          Kingdom are increasing in leaps and                                                                                                ten wine markets in the years to come.
   steep slopes, otherwise you’ll never                 fashion, the sign overhead with the            bounds – by a staggering 91 percent in                                                                                             At the moment, the United States tops
   survive as a winegrower,” declares                   opening times reads: “But we’re also           2006 alone. Fantastic figures such as                                                                                              the world wine-consumption rank-
                                                                                                                                                                                                                                          ings, followed by Italy, France, Germa-
                                                                                                                                                                                                                                          ny, and the United Kingdom.

                                                           CHAMPAGNE                                                                                                                                                                      “The increased variety also has a lasting

                                                           Fermentation during transportation                                                                                                                                             effect on logistical requirements,” says




                                                                                                                                                      Photos: A1PIX, Le Figaro Magazine/laif, Oberhäuser/Caro(2), Atlantide/Schapowalow
                                                                                                                                                                                                                                          Lutz Wempe, head of wine logistics at
                                                                                                                                                                                                                                                                                     Hard work on the hillside: A harvester in a vineyard overlooking the Rhine.
                                                           Once upon a time there was a transportation problem and, as a                                                                                                                  the German subsidiary of Schenker.
                                                           result, the English were the first to appreciate French champagne.                                                                                                             “Today, a logistics company for qual-
                                                                                                                                                                                                                                          ity wines not only needs to be quick
                                                           ■ Champagne is a product of logistics.       3.4 million hectoliters lie in storage with                                                                                       and always available, it also has to fa-
                                                           As wine from the Champagne region            traders and producers. To celebrate the                                                                                           miliarize itself with every aspect of this
                                                           could not endure transportation in           millennium in 1999, 327 million bottles                                                                                           delicate product.” Therefore, Schen-
                                                           barrels, winegrowers 400 years ago           of champagne were sold.                                                                                                           ker has gathered expertise for han-
                                                           used to pour it into bottles. This caused                                                                                                                                      dling products from the wine-growing
                                                           the young wine to ferment longer, but        ■ Champagne in Germany is mostly                                                                                                  regions of Europe and elsewhere
                                                           England’s connoisseurs appreciated the       handled by Schenker. The brands Veuve                                                                                             around the world at its own skills
                                                           sparkle – and kept ordering more.            Clicquot, Moët, and Champagne Ruinart                                                                                             center. This makes it possible for
                                                                                                        reach retailers via the champagne central                                                                                         customers to purchase wines from
                                                           ■ Champagne became a luxury                  warehouse in Schweinfurt owned by                                                                                                 all parts of the globe through a special-
                                                           product around the world in the 19th         Schenker Deutschland.                                                                                                             ized logistics partner.
   Special handling: Several times a year, bottles of      century. Today, 2.5 million hectoliters                                                                                                                                            With the emergence of wine-grow-       Readying the Riesling: After the grapes have been         Waiting in the dark: Barrels stored in the
   fermenting champagne are shaken by hand.                are produced every year, and a further       www.champagne.com                                                                                                                 ing nations like Australia, Argentina > picked, the juice is extracted with a press.                 cool cellars of Schloss Johannisberg.

62 | LOGISTICS                                                                                                                                                                                                                                                                                                                                                              LOGISTICS | 63
                                                                                                                                                                                                                                                                                                                                                                   Solutions

                                                                                                                                                                                                                                     The finest wines must be handled as carefully
                                                                                                 and Chile as major exporters, the
                                                                                                 global selection of quality wines has
                                                                                                 significantly expanded over the past
                                                                                                 few years. However, the “big three”
                                                                                                 of Italy, France, and Spain will remain                                                                                             as priceless works of art.
                                                                                                 the most important producers in the
                                                                                                 future. With a total cultivation area                                                                                               tomer for a logistics company. Instead,             According to Dünschede, “If you                auctions or by buying complete col-
                                                                                                 of more than three million hectares,                                                                                                traders join forces to form loose net-              choose the wrong partner, you will             lections, you find renowned labels
                                                                                                 these three nations account for half of                                                                                             works and place their orders until they             have to wait in line, and the goods will       such as the legendary Bordeaux wines
                                                                                                 global production.                                                                                                                  are sufficient to fill up a container –             arrive later than you would like.”             Petrus, Chateau Latour, and Le Pin.
                                                                                                                                                                                                                                     which means something in the region                                                                Wines such as these can easily cost up
                                                                                                 Location — Australia: The winegrow-                                                                                                 of 15,000 bottles.                                  The agricultural product that is wine          to €3,000 per bottle.
                                                                                                 ers of the southern continent have                                                                                                      In terms of transport, the principal            became a lifestyle accessory a long               It gets even more expensive when
                                                                                                 earned an excellent reputation around                                                                                               question is one of perfect goods han-               time ago. Learning and knowing about           dealing with the transportation of
                                                                                                 the world. Each year, the country                                                                                                   dling. “If the temperature is not con-              wine is important in many circles              untouched original boxes – the Holy
                                                                                                 produces 1.3 billion liters of wine, of                                                                                             stant, then things get complicated!” ex-            nowadays. For highly specialized wine          Grail of wines. It’s even a challenge
                                                                                                 which almost two-thirds are exported.                                                                                               plains Andreas Dünschede, CEO of the                merchants such as the Francfort Trade          for experienced wine logistics experts
                                                                                                 This clearly puts Australia ahead of                                                                                                wine merchant Weinstraße Adolph,                    House (FTH) of Mörfelden, Germany,             such as Schenker’s Wempe to trans-
                                                                                                 Chile and Argentina.                                                                                                                based in Cologne, Germany. Wine is                  this is a good thing. The company has          port 700 bottles of 1966 Bordeaux, in
                                                                                                     In the region around Adelaide                                                                                                   particularly prone to spoilage when                 focused on catering to the high end of         their original packaging and worth in
                                                                                                 on the Gulf Saint Vincent, you find                                                                                                 there are sharp rises or falls in tem-              the market. In this segment, well-to-do        total around €200,000. According to
                                                                                                 well-known growing areas such as the                                                                                                perature. To prevent such problems,                 connoisseurs immerse themselves in a           Wempe, “In order to package such
                                                                                                 Barossa Valley. Frequently visited by                                                                                               reefer containers are used in which the             world of luxury and “Parker points,”           freight professionally, here at Schen-
                                                                                                 tourists from the United States and                                                                                                 temperature is monitored around the                 a quality ranking named after leading          ker we use the specialists from our
                                                                                                 Europe, the vineyards are continu-                                                                                                  clock. The optimum transportation                   wine critic Robert M. Parker. These            art department.” The goods must not
                                                                                                 ally faced with the task of shipping                                                                                                temperature for wine is somewhere be-               points are awarded to wines that are           suffer the slightest scratch and are
                                                                                                 small volumes of wine to enthusiastic                                                                                               tween 10 and 18 degrees.                            not simply something to enjoy, but             handled as carefully as if they were a
                                                                                                 guests. “The industry in which we op-                                                                                                   However, a cost-conscious practi-               that also can become an item of value          priceless oil painting.
                                                                                                 erate reaches all corners of the earth,”                                                                                            tioner such as Dünschede also knows                 for the owner. One of the most impor-             In some cases, customers request
                                                                                                 says Lucy Willson with enthusiasm.                                                                                                  that it is sufficient to store the contain-         tant buyers is Christie’s auction house.       accompanied secure transportation:
                                                                                                 “It fascinates me that the wine which is                                                                                            er with the goods below the cooling                    “For wines of this category, in             The freight is personally delivered to
                                                                                                 produced on our land reaches custom-                                                                                                waterline of the container ship. “Wine              addition to optimum climate control,           the airport and is received at the desti-
                                                                                                 ers all over the world without a hitch.”                                                                                            that is shipped across the equator                  the subject of security comes to the           nation in the same manner. “That cov-
                                                                                                 The marketing manager supports her                                                                                                  can be ruined by the blazing sun.”                  fore,” says Nicos Hornivius of FTH.            ers all eventualities,” says luxury ex-
                                                                                                 father Craig at the Bremerton winery,                                                                                               Added to this consideration is a purely             “Only banks can still provide compre-          pert Hornivius, “however, this drives
                                                                                                 80 kilometers southeast of Adelaide.                                                                                                organizational aspect: Only a logistics             hensive security precautions.” This            up the price of transportation.” But
                                                                                                 It’s a real family affair: Lucy’s sister                                                                                            company with a strong international                 prudence is well founded, for in prod-         who’s going to worry about this after
                                                                                                 Rebecca is also a winemaker.                                                                                                        presence can guarantee the required                 uct selections that companies such as          spending several thousand euros on a
                                                                                                     While Bremerton, just like the                                                                                                  freight rates at the desired time.                  FTH prepare by acquiring through               bottle of wine?                        ■
                                                                                                 Boppard winery of Joachim Lorenz,
                                                                                                 provides an Internet ordering service
                                                                                                 for private customers, the majority of
                                                                                                 quality wines traveling to locations on                                                                                                                                                    SCHENKER
                                                                                                                                            Photos: A.Bruzzone/Jahreszeiten Verlag, S. Morris/StockFood, Clay McLachlan/IPN, DB AG

   Ripening reputation: The Penfolds Magill Estate in Australia produces premium wines.
                                                                                                 other continents reach their destina-
                                                                                                 tion via global networks of importers                                                                                                                                                      Experts on wine
                                                                                                 in the retail trade.                                                                                                                                                                       With its closely knit network of international locations, Schenker has
                                                                                                     Adrian McQuillan, Schenker                                                                                                                                                             become one of the world’s leading wine logistics companies.
                                                                                                 product manager in Adelaide, has
                                                                                                 responded to the growing demand                                                                                                                                                            ■ DB subsidiary Schenker is one of           growing regions of Germany, Europe,
                                                                                                 for wine from the region by establish-                                                                                                                                                     Germany’s leading providers of wine          and the rest of the world.
                                                                                                 ing a unique door-to-door delivery                                                                                                                                                         logistics. The peak period is the lead-up
                                                                                                 service. Every week, up to 600 indi-                                                                                                                                                       to Christmas. This is when traders,          ■ Subsidiary Anterist + Schneider
                                                                                                 vidual consignments, each containing                                                                                                                                                       restaurateurs and private individuals        based in Saarbrücken, Germany, owns
                                                                                                 varieties such as Shiraz and Cabernet                                                                                                                                                      stock up on wine. Schenker ensures that      a central high-rack warehouse in that
                                                                                                 Sauvignon, are transported by air                                                                                                                                                          wines from all around the world reach        city with around 7,000 pallet spaces.
                                                                                                 freight around the world.                                                                                                                                                                  consumers on time.                           The facility handles around ten million
                                                                                                     However, most of the wine travel-                                                                                                                                                                                                   bottles of wine each year.
                                                                                                 ing between continents is transported                                                                                                                                                      ■ Schenker Deutschland has recently
                                                                                                 as sea freight. This means that, for                                                                                                                                                       set up a skills center for wine logistics    www.anterist-schneider.de
   Automated picking: Winegrowers in Australia’s    Vats of steel: Behind the grape presses at   many specialist wine stores, it is sim-                                                                                             Pallet to palate: A Schenker associate collects a      and has been collecting expertise            For more info on SCHENKERwine
   Padthaway region supply other producers.         Penfolds, the tanks line up.                 ply not possible to be the sole cus-                                                                                                wine shipment from Penfolds in Australia.              for handling products from the wine-         www.schenker.de

64 | LOGISTICS                                                                                                                                                                                                                                                                                                                                                          LOGISTICS | 65
Update
                                                                                                                                                                                     Office opens in Moldova
                                                                                                                                                                                     ■ Schenker has opened a branch in Chi-
                                                                                                                                                                                     sinau, the capital of Moldova. In doing
                                                                                                                                                                                                                                 be the official logistics provider of the
                                                                                                                                                                                                                                 June event – and recommended to par-
                                                                                                                                                                                                                                 ticipating teams that they, too, make
                                                                                                                                                                                                                                 use of Schenker’s experience and net-
                                                                                                                                                                                                                                                                             logistics
                                                                                                                                                                                     so, it has connected the country to         work. The world championships took
                                                                                                                                                                                                                                                                             Publisher
                                                                                                                                                                                     the network for inland transport, air-      place at Cascais, though the tourna-
                                                                                                                                                                                                                                                                             Deutsche Bahn AG
                                                                                                                                                                                     freight, and sea freight, areas in which    ment sometimes experienced delays
                                                                                                                                                                                                                                                                             Communications, Transportation,
                                                                                                                                                                                     Moldovan employees currently offer          as some races had to be postponed
                                                                                                                                                                                                                                                                             and Logistics Division
                                                                                                                                                                                     services. Some 4.5 million people live      due to excessively strong winds.
                                                                                                                                                                                                                                                                             Dr. Antje Lüssenhop (V.i.S.d.P.)
                                                                                                                                                                                     in the republic, which is sandwiched
                                                                                                                                                                                                                                                                             Leipziger Platz 9, 10117 Berlin, Germany
                                                                                                                                                                                     between Romania and Ukraine.
                                                                                                                                                                                                                                          GERMANY
                                                                                                                                                                                                                                                                             Project Direction
                                                                                                                                                                                     New terminal in Arad                        Masterplan for the
                                                                                                                                                                                                                                                                             Michael Schmidt

                                                                                                                                                                                     ■ Schenker has put a new train terminal
                                                                                                                                                                                     into operation in the Romanian city
                                                                                                                                                                                                                                 Chemical Triangle                           Editorial, Design, and Production
                                                                                                                                                                                                                                                                             KircherBurkhardt Editorial & Corporate
                                                                                                                                                                                     of Arad in Transylvania. This addition      ■ In order to meet growing demands
                                                                                                                                                                                                                                                                             Communication GmbH
                                                                                                                                                                                     is located close to existing terminals in   for chemical transportation, Deutsche
                                                                                                                                                                                     Bucharest and Cluj-Napoca and has a         Bahn has devised a masterplan for           Contributors
                                                                                                                                                                                     direct rail connection with both. The       the southeastern Bavarian “Chemi-           Hartmut Albrecht, Rainer Busch, Thomas
                                                                                                                                                                                     warehouse, which covers some 1,000          cal Triangle.” It sets out specific         Finkbiner, Olaf Krohn, Hilmar Poganatz,
                                                                                                                                                                                     square meters, serves as a transship-       measures to regulate future trans-          Dr. Peter Sauer, Christoph Schomberg,
                                                                                                                                                                                     ment point between road and rail.           portation and logistics volumes.            Marc Winkelmann
                                                                                                                                                                                                                                 The plans include fewer locomotive
                                                                                                                                                                                                                                 empty runs, new switching concepts,
                                                                                                                                                                                     SpainShuttle in service                     and noise reduction measures. DB
                                                                                                                                                                                                                                                                             Infographics
                                                                                                                                                                                                                                                                             KircherBurkhardt / Infografik
                                                                                                                                                                                     ■ Railion and the freight division of       calculates that by 2015 transport
                                                                                                                                                                                     French National Railways, SNCF              volumes will have doubled to al-            Editorial Systems/IT
   Ready, set, go: Participants at the BG World Cup Triathlon in Vancouver, Canada, set off on their first discipline, the Sprint in the Sea.                                        Fret, have put into operation a new         most six million tons per year.             Code Couture, Software Solutions & Support
                                                                                                                                                                                     direct train for freight transportation                                                 GmbH, http://www.code-couture.com
                                                                                                                                                                                     between Germany and the French-             AlbatrossExpress offers
                                                                                                           tors from many countries. Michael                                         Spanish border. The idea is to connect

   DB Logistics news from                                                                                  Gunn, operations manager of the                                           Saarbrücken with the stations in
                                                                                                                                                                                                                                 expanded service                            Prepress
                                                                                                                                                                                                                                                                             KircherBurkhardt GmbH
                                                                                                           Hanover trade fair, stated, “Schen-                                       Perpignan and Le Boulou in the              ■ Transfracht International has ex-



   around the globe
                                                                                                           ker has individual solutions ready                                        south of France by means of a new           panded its AlbatrossExpress train           Subscriptions
                                                                                                           for even the most demanding ex-                                           Hub&Spoke system. From those                offer on the Rhine-Ruhr and Rhine-          Would you like a free subscription?
                                                                                                           hibitors.” The logistics provider                                         southern French stations, local service     Main routes. There are now additional       Just send us your address. Key articles in this
                                                                                                           has been represented in Australia                                         providers will receive the goods for        trains to Frankfurt am Main and Dort-       issue are online at: www.dblogistics.de
                                                                                                           since 1962, and has more than                                             transportation by truck, principally        mund, nine weekly import trains
                                                       handle the logistics for the BG World               1,100 employees at 36 locations.                                          to Spain. Some 85 percent of capaci-        running from the German seaports
             INTERNATIONAL                             Cup in Vancouver, Canada. The race,                                                                                           ties are already utilized by paper, cel-    to Dortmund, and nine import trains
                                                                                                                                                                                                                                                                             Editorial Address
                                                                                                                                                                                                                                                                             KircherBurkhardt Editorial & Corporate
                                                       which offered $100,000 in prize
                                                       money, took place in June 2007.                                EUROPE                                                         lulose, and other palletized goods.         and eight export trains operating
                                                                                                                                                                                                                                 to and from Frankfurt each week.
                                                                                                                                                                                                                                                                             Communication GmbH, Oranienburger Str. 66
   Guest performance in Oz                             Schenker coordinated the set-up and
                                                                                                                                                                                                                                                                             10117 Berlin, Germany

   ■ The Paris Opera Ballet traveled to                managed the event, ensuring that                                                                                              NCS sold to Daher                                                                       Tel.: + 49 (30) 44032-0

   Australia for the first time for a guest            all of the equipment arrived on time.
                                                                                                           Nieten Fracht in Russia                                                   ■ With retrospective effect from
                                                                                                                                                                                                                                 New in Schenker network                     Fax: + 49 (30) 44032-20
                                                                                                                                                                                                                                                                             redaktion.stinnes@kircher-burkhardt.com
   appearance in June. A total of 135                  The SCHENKERglobalsportsevents                      ■ Deutsche Bahn subsidiary Nieten                                         On 1 January 2007, Deutsche Bahn            ■ On 1 July, Schenker Deutschland
   artists and other employees from                    team assumes the role of official                   Fracht Logistik has opened a branch                                       sold Stinnes subsidiary Nuclear Cargo       took over the unit load and inland          logistics is published by KircherBurkhardt
   Paris were there, dancing and play-                 logistics partner at many top-class                 in St. Petersburg. From now on, the                                       + Service (NCS) to the French com-          transport of Bremer Internationalen         Editorial & Corporate Communication GmbH
   ing with the Sydney Lyric Orchestra,                international sporting events.                      company plans to serve the increas-                                       pany Daher. Founded in 1863 and             Spedition F. W. Neukirch (GmbH              Oranienburger Str. 66, D-10117 Berlin, Germany
   both in the Capital Theatre and at                                                                      ing demand for Russian wood prod-                                         headquartered in Marseille, Daher has       & Co.) KG. “We are delighted that           Company Directors:
   the Opera House. Schenker was                                                                           ucts. According to Nieten Fracht, in                                      taken on all 125 former employees of        the owners of a traditional, medium-        Rainer Burkhardt and Lukas Kircher
   responsible for all of the logistics                Support for CeBIT Australia                         particular the emerging complex of                                        NCS, thus strengthening its nuclear         sized company have opted for our
   and handled the transportation of                   ■ The CeBIT trade fair in Australia                 ports is creating opportunities. “The                                     business. In 2006, Daher generated          network,” says Hans-Jörg Hager,             logistics has a total print run of 40,000,
   all costumes and stage settings from                appointed Schenker as the official                  new site is another step forward in                                       sales in the region of €450 million.        Schenker Deutschland’s chairman             which includes German and international
                                                                                                                                                   Photo: Delly Carr/triathlon.org




   Paris to Sydney and back again.                     logistics partner for the sixth time.               the close cooperation between DB                                                                                      of the board. The shipping company          English-language editions. Editors assume
                                                       This spin-off from the Hanover trade                and the Russian rail operator RZD,”                                                                                   is moving all of its European trans-        no responsibility for unsolicited manuscripts
                                                       fair for information and communica-                 said Karsten Sachsenröder, head of                                        Logistics for sailors                       port over to the Schenker network.          or photographs. All contributions are copy-
   Triathlon with Schenker                             tions technology took place at the                  marketing in the building materials,                                      ■ Organizers of the Sailing World           “We promise a significant increase          righted. Reproduction by any mechanical or
   ■ The International Triathlon Union                 start of May. Schenker handled the                  industrial goods, and consumer goods                                      Championships in Portugal chose the         in transport quality and stability,”        digital means without written permission of
   (ITU) commissioned Schenker to                      equipment transportation for exhibi-                department at Railion.                                                    SCHENKERglobalsportsevents team to          says FWN CEO Bruno Kruth.                   KircherBurkhardt is strictly prohibited.


66 | LOGISTICS                                                                                                                                                                                                                                                                                                    LOGISTICS | 67
                                                                                                                                                                                                                                                  El
                                                                                                                                                                                                                                                    be                                                       POLAND

Focus on: Czech Republic                                                                                                                                                                                            GERMANY
                                                                                                                                                                                                                                                                             Jablonec Nad Nisou                                                              Addresses
                                                                                                                                                                                                                                              Decin                Liberec
                                                                                                                                                                                                                                                                                Trutnov
                                                                                                                                                                                                                                                         Mlada Boleslav




                                                                                                                                                                                                                                                                                                                      Od
                                                                                                                                                                                                                                                                                                                        er
                                                                                                                                                                                                                                                  Prague
                                                                                                                                                                                                                                                                                Hradec Kralove
                                                                                                                                                                                                                                    Plzen                    Strancice
                                                                                                                                                                                                                                                                                                               Ostrava
                                                                                                                                                                                                                        Bor u Tachova
                                                                                                                                                                                                                                                             CZECH REPUBLIC                                      Novy Jicin


                                                                                                                                                                                                                       Da
                                                                                                                                                                                                                          nu                      Ceske Budejovice                             Brno
                                                                                                                                                                                                                            be

                                                                                                                                                                                                                                                                                                                    SLOVAKIA


                                                                                                                                                                                                                                                              AUSTRIA                                                         N

                                                                                                                                                                                                                                                                                                                            50 km      DB Logistics headquarters: On
                                                                                                                                                                                                                                                                                                                                       Leipziger Platz in downtown Berlin.


                                                                                                                                                                                                             CZECH REPUBLIC                                                                                                            DB LOGISTICS WORLDWIDE

                                                                                                                                                                                                             Developing highways and railroads                                                                                         Key addresses
                                                                                                                                                                                                             ■ Construction boom                             on the highways at the                                                    ■ DB Transportation
                                                                                                                                                                                                             The Czech economy is                            beginning of the year.                                                    and Logistics Division
                                                                                                                                                                                                             pressing on with extend-                        The government intends                                                    Leipziger Platz 9, 10117 Berlin, Germany
                                                                                                                                                                                                             ing its infrastructure. The                     to invest around €420 mil-                                                tel +49 30 297-0
                 Manufacturing at Skoda:                                                                                                                                                                     government is currently                         lion in the roads by 2010.                                                info@dblogistics.de
                 Schenker in the Czech                                                                                                                                                                       implementing large high-                        The rail network is well                                                  www.dblogistics.de
                 Republic specializes in
                 automotive logistics.
                                                                                                                                                                                                             way projects in particular,                     constructed, but out of
                                                                                                                                                                                                             and intends to modernize                        date in parts.                                                            ■ Intermodal
                                                                                                                                                                                                             the railroad lines and                          ■ Economy                                                                 The business area for
                                                                                                                                                                                                             junctions. Foreign inves-                       A third of all exports come              Tomas Holomoucky:                intermodal traffic.
                                                                                                                                                                                                             tors continue to pump                           from the automobile                      Prague-based CEO.                Leipziger Platz 9, 10117 Berlin, Germany




   The turnstile of Europe
                                                                                                                                                                                                             money into the country,                         industry. Other important                                                 tel +49 30 297-0
                                                                                                                                                                                                             opening local offices and                       sectors include metallur-            SCHENKER SPOL. S R. O.               info@db-intermodal.com
                                                                                                                                                                                                             logistics centers.                              gy, machine construction,            Corporate Office                     www.dblogistics.de
                                                                                                                                                                                                             ■ Transport network                             food and wood, chemicals             K Vypichu 1087
                                                                                                                                                                                                                                                                                                                                       ■ Railion Deutschland
                                                                                                                                                                                                             To modernize the roads,                         and pharmaceuticals,                 252 19 Rudna u Prahy
                                                                                                                                                                                                                                                                                                                                       Sales and production for specialized
    The Czech Republic’s central location makes it an ideal logistics                                                                                                                                        the Czech Republic
                                                                                                                                                                                                             introduced a trucks toll
                                                                                                                                                                                                                                                             glass and the production
                                                                                                                                                                                                                                                             of ceramics.
                                                                                                                                                                                                                                                                                                  Czech Republic
                                                                                                                                                                                                                                                                                                  http://www.schenker.cz
                                                                                                                                                                                                                                                                                                                                       products under one roof.
                                                                                                                                                                                                                                                                                                                                       Rheinstrasse 2, 55116 Mainz, Germany
    center and a motor for rapid economic growth.                                                                                                                                                                 CZECH EXPORTS 2006
                                                                                                                                                                                                                  CZECH EXPORTS 2006                                                CZECH IMPORTS 2006
                                                                                                                                                                                                                                                                                    CZECH IMPORTS 2006
                                                                                                                                                                                                                                                                                                                                       tel +49 6131 159
                                                                                                                                                                                                                                                                                                                                       kommunikation@railion.com




   T
                                                                                                                                                                                                                                                             17.0 Cars
                                                                                                                                                                                                                                                             17.0 Cars           Other 32.7
                                                                                                                                                                                                                                                                                 Other 32.7                      12.4 Electronics
                                                                                                                                                                                                                                                                                                                 12.4 Electronics      www.railion.com
               he engine of the economy           Europe is an enormous advantage for         shipping of goods and distribution.
                                                                                                                                                                                                                                                             & auto parts
                                                                                                                                                                                                                                                             & auto parts                                              Machines
                                                                                                                                                                                                                                                                                                                       Machines
               is purring powerfully in           us,” says Tomas Holomoucky. The             The rising number of transportations                                                                           Other 30.5
                                                                                                                                                                                                             Other 30.5
                                                                                                                                                                                                                                                                                                                       11.7
                                                                                                                                                                                                                                                                                                                       11.7            ■ KundenServiceZentrum
               the Czech Republic. Since          35-year-old has been CEO of Schenker        is now to be controlled through mod-                                                                                                                                                                                                     Masurenallee 13, 47055 Duisburg,
                                                                                                                                                                                                             Foodstuffs &
                                                                                                                                                                                                              Foodstuffs &                                                                                           9.6
                                                                                                                                                                                                                                                                                                                     9.6
               the country joined the EU          in the Czech Republic since 2004, and       ern technology such as Radio Frequen-                                                                          luxury goods
                                                                                                                                                                                                              luxury goods
                                                                                                                                                                                                                                              %
                                                                                                                                                                                                                                              %                13.9
                                                                                                                                                                                                                                                               13.9              Textiles,
                                                                                                                                                                                                                                                                                 Textiles,               %
                                                                                                                                                                                                                                                                                                         %            Flammables,
                                                                                                                                                                                                                                                                                                                     Flammables,       Germany, tel +49 1805 331 050
                                                                                                                                                                                                                                                               Machines
                                                                                                                                                                                                                                                               Machines          clothing
                                                                                                                                                                                                                                                                                 clothing
               three years ago, its economy       the subsidiary has been active on the       cy Identification (RFID).                                                                                       3.6
                                                                                                                                                                                                             3.6                                                                  3.9
                                                                                                                                                                                                                                                                                 3.9
                                                                                                                                                                                                                                                                                                                     lubricants,
                                                                                                                                                                                                                                                                                                                      lubricants,
                                                                                                                                                                                                                                                                                                                                       neukundenservice@dblogistics.de
    has been growing rapidly – by almost          national market since 1991. Its head-          “This is what makes us as a logistics                                                                                                                      12.8
                                                                                                                                                                                                                                                            12.8                                                      electricity
                                                                                                                                                                                                                                                                                                                     electricity
                                                                                                                                         Photos: J. Eckel, DB AG (2) Graphics: KircherBurkhardt Infografik




                                                                                                                                                                                                             Textiles and
                                                                                                                                                                                                             Textiles and                                   Electronics
                                                                                                                                                                                                                                                            Electronics          Foodstuffs 4.3
                                                                                                                                                                                                                                                                                 Foodstuffs 4.3                  9.5 Iron, steel and
                                                                                                                                                                                                                                                                                                                 9.5 Iron, steel and
    six percent in the last year alone. Over      quarters is in the capital, Prague; a       provider so attractive to the automo-                                                                                                                                                                                                    ■ Schenker
                                                                                                                                                                                                             clothing 3.6
                                                                                                                                                                                                             clothing 3.6                              10.3 Iron, steel &
                                                                                                                                                                                                                                                       10.3 Iron, steel &                                        metal products
                                                                                                                                                                                                                                                                                                                 metal products
    two-thirds of exports go to the single        further 18 sites are scattered across the   bile industry,” explains Holomoucky,                                                                                                                                               Electrotechnic 7.4
                                                                                                                                                                                                                                                                                 Electrotechnic 7.4          8.5 Cars & auto parts
                                                                                                                                                                                                                                                                                                             8.5 Cars & auto parts     Freight forwarding and logistics
                                                                                                                                                                                                             Electrotechnology 8.3
                                                                                                                                                                                                             Electrotechnology 8.3                     metal products
                                                                                                                                                                                                                                                       metal products
    European market.                              country with a total of 620 employees.      and hopes that the trend continues.                                                                                                                                                                                                      including land transport, air and
        The transport and logistics industry         The fact that the automotive indus-      Schenker in the Czech Republic has                                                                                                                                                                                                       ocean freight, contract logistics,
    is also making a profit from it all, as the   try is growing particularly rapidly in      doubled its sales in the last three                                                                                 MAIN SUPPLIERS
                                                                                                                                                                                                                  MAIN SUPPLIERS                                                    MAIN CUSTOMERS
                                                                                                                                                                                                                                                                                    MAIN CUSTOMERS                                     and supply chain management.
    Czech Republic has become the turn-           the Czech Republic has led Schenker         years – a feat that, according to Holo-                                                                                                                                                                                                  Alfredstrasse 81, 45130 Essen, or
    stile between west and southeastern           to specialize in this sector. Its custom-   moucky, is in no small part due to the                                                                         Other 34.9
                                                                                                                                                                                                             Other 34.9                                     28.5 Germany
                                                                                                                                                                                                                                                            28.5 Germany                                             Germany
                                                                                                                                                                                                                                                                                                                     Germany           PO Box 10 34 44, 45034 Essen, Germany
    Europe. In its European Distribution          ers include many large car manufac-         work of highly motivated employees.                                                                                                                                                Other 27.5
                                                                                                                                                                                                                                                                                 Other 27.5                          31.8
                                                                                                                                                                                                                                                                                                                     31.8
                                                                                                                                                                                                                                                                                                                                       tel +49 201 8781-0
    Report 2005, the US real estate consult-      turers and suppliers. Happich is one
                                                                                                                                                                                                                                              %
                                                                                                                                                                                                                                              %                                                          %
                                                                                                                                                                                                                                                                                                         %                             ■ All 1,100 Schenker addresses
    ing firm Cushman & Wakefield ranked           example. Schenker manages all of the        Customers include Happich, LG Elec-                                                                                                                                                Hungary 3.0
                                                                                                                                                                                                                                                                                 Hungary 3.0
                                                                                                                                                                                                                                                              6.0 China
                                                                                                                                                                                                                                                              6.0 China
    the Czech Republic fourth among its           logistics services for this motor vehicle   tronics CZ, Dell, Nike, Skoda, Siemens,                                                                        Netherlands
                                                                                                                                                                                                             Netherlands
                                                                                                                                                                                                                                                                                  Netherlands
                                                                                                                                                                                                                                                                                 Netherlands                         8.4 Slovakia
                                                                                                                                                                                                                                                                                                                     8.4 Slovakia      http://webathos4.schenker.com
                                                                                                                                                                                                             4.0
                                                                                                                                                                                                             4.0                                              6.0 Russia
                                                                                                                                                                                                                                                              6.0 Russia
    favorite logistics locations in Europe.       interior equipment provider – from          ABB, Bosch, Danisco Czech Republic,                                                                                                                                                 3.6
                                                                                                                                                                                                                                                                                 3.6                                 5.7 Poland
                                                                                                                                                                                                                                                                                                                     5.7 Poland        info@schenker.com
                                                                                                                                                                                                             Italy 4.7
                                                                                                                                                                                                              Italy 4.7                                       5.7 Poland
                                                                                                                                                                                                                                                              5.7 Poland          Italy 4.6
                                                                                                                                                                                                                                                                                 Italy 4.6
    “The strategic position in the heart of       storage and the arrival of goods to the     Ford Motor Company.                  ■                                                                                                                                                                                 5.5 France
                                                                                                                                                                                                                                                                                                                     5.5 France        www.schenker.com
                                                                                                                                                                                                              France 4.8
                                                                                                                                                                                                             France 4.8                                       5.4 Slovakia
                                                                                                                                                                                                                                                              5.4 Slovakia        United Kingdom 4.8
                                                                                                                                                                                                                                                                                 United Kingdom 4.8                  5.1 Austria
                                                                                                                                                                                                                                                                                                                     5.1 Austria
                                                                                                                                                                                                                                                             Percentages 2006
                                                                                                                                                                                                                                                             Percentages 2006                                       Percentages 2006
                                                                                                                                                                                                                                                                                                                    Percentages 2006

68 | LOGISTICS                                                                                                                                                                                               Source: Česky statistický úřad                                                                                                                            LOGISTICS | 69
Last Word
                                                                                                                                                                                                                             Our next issue DECEMBER 2007

                                 Lost in transit
                 When you fly to London or Los Angeles but your suitcase
                 ends up in Norway or Nigeria, exactly what is going on?
                                       [ Interview ] Marc Winkelmann      [ Illustration ] Jens Bonnke




   M
                    r. Bärwalde, according to a study by a British        In 2006, Lufthansa alone forwarded more than 54 million                                                                                                                                                       Mailman and statesman: Carlos Delorenzo
                    consumer protection organization, more than           passengers and about 80 million pieces of luggage. Because                                                                                                                                                    outside his office in Tierra del Fuego.
                    5.6 million pieces of luggage were lost on 24 major   of this volume, we have significantly more complex logis-
                    airlines in 2006. Why does luggage get lost?          tics processes than smaller airlines, which often offer only                                                                                                                                                  ON THE ROAD
                    According to statistics from the Association of
    European Airlines, at Lufthansa
                                                                          point-to-point connections. With them, the margin of error
                                                                                                       is much lower from the outset.                                                                                                                                                   The last post office
    less than 1.4 percent of carried bag-                                                              Some airlines are experimenting
    gage is temporarily lost. We find                                                                  with RFIC chips to track pieces of                                                                                    { India }                                                  On the most southerly tip of South Ameri-
    95 percent of these bags within                                                                    luggage more reliably. Will this                                                                                                                                                 ca – that is, on the south coast of Tierra del
    five days and deliver them to the                                                                  kind of wireless technology become
                                                                                                                                                                                                                             Retail pioneers: Supermarkets are a new phenomenon on      Fuego – an ancient forest grows. A small
    passenger via courier – the vast                                                                   more widespread?                                                                                                      the Indian subcontinent – and the public adores them.      wooden hut stands at the edge of this for-
    majority within 24 hours. One                                                                      We’ve looked at this technology,                                                                                                                                                 est. Behind it lies the Beagle Canal linking
    common reason for delayed bag-                                                                     but there are too many questions                                                                                                                                                 the Atlantic to the Pacific. In front of the
    gage, for example, is unplanned                                                                    still connected to it at the mo-                                                                                                                                                 hut is an old-fashioned British “pillar box,”
    short transfer times due to de-                                                                    ment. We fly to many, many des-                                                                                                                                                  round and red. And a sign hanging over
    layed flight arrivals. That’s when                                                                 tinations around the world and                                                                                                                                                   the door proudly announces “Post office
    things can get tight for unloading                                                                 work with a lot of airports. These                                                                                                                                               at the end of the world.”
    and transporting suitcases via the                                                                 all have a wide variation in tech-
    luggage forwarding belt. Another                                                                   nical standards and infrastruc-                                                                                                                                                  The post office worker comes out of his hut,
    common situation is that a label                                                                   tural possibilities. This makes                                                                                                                                                  gray-haired and sporting a prominent
    comes off and we can no longer                                                                     implementing such technology                                                                                                                                                     moustache. The most southerly Kaiser
    direct the suitcase to where it has                                                                extremely complex. And only                                                                                                                                                      Wilhelm look-alike in the world, he intro-
    to go, or that suitcases are loaded                                                                partially implementing a system                                                                                                                                                  duces himself as Carlos Delorenzo, prime
    incorrectly. Because of the new                                                                    doesn’t make any sense.                                                                                                                                                          minister of the island of Redonda. For €1,
    security regulations for hand bag-                                                                 What happens to the bags that land                                                                                                                                               he issues us with a pass to his “Kingdom of
    gage, passengers check in more                                                                     in the lost and found and whose                                                                                                                                                  Redonda” – a wonderful madness where
    bags – a recent development that                                                                   owners don’t come to claim them?                                                                                                                                                 those who subscribe agree from now on to
    has been leading to extra work for                                                                 Bags that no one comes to claim                                                                                                                                                  live “without rights and duties,” and “only
    baggage handlers. Often we can                                                                     are put into an international                                                                                         { Steel }                                                  to do as they please.”
    only partially influence the cause                                                                 system that has more than 400                                                                                         Heavy metal: DB approaches clients in the steel industry
    of a lost piece of luggage.                                                                        participating airlines. If a piece                                                                                                                                               Incidentally, the Redondan prime minister
    But customers usually don’t care                                                                   of luggage can no longer be allo-
                                                                                                                                                                                                                             with a streamlined concept and brand new structure.        really does moonlight as a mailman. So we
    whether forces of nature are in play.                                                              cated, we put our suitcase detec-      Photos: A. Mann/PhotoInk/Agentur Focus, DB AG, brand X pictures, H. Poganatz                                                              dash off a postcard and see that it will take
    A passenger’s bag is simply missing                                                                tives into action. They look for                                                                                                                                                 just two weeks for it to travel from the end
    and its transport was paid for.                                                                    hints that point to source, coun-                                                                                                                                                of the world, via Buenos Aires, to its desti-
    This is something we know and feel                                                                 try, and passenger; they open the                                                                                                                                                nation in Berlin, Germany.
    responsible for. This is why we’re always working with the            suitcases and look for business cards or similar indications
    responsible airport operators on optimizing our processes             of the owner’s identity. After this intensive effort, if we still                                                                                                                                             Correos de Argentina
    and the transportation routes for forwarding luggage.                 can’t find the owner after three months, the bags are publicly                                                                                                                                                Unidad Postal Fin del Mundo
    Are the time frames between flights sometimes scheduled               auctioned off. This is the legal procedure. Then we hold onto                                                                                                                                                 Parque Nacional Tierra del Fuego
    too tightly?                                                          the proceeds for three years.                                                                                                                                                   { Plants }                    (V9410VGA) Ushuaia, Argentina
    No. Our passengers would like to travel as smoothly as
    possible, with short waiting times. For this reason there’s           Jan Bärwalde is a both luggage expert and a press                                                                                                                               Flower power: Worldwide
    a so-called minimum connection time within which we                   spokesperson for Lufthansa in Frankfurt. At the                                                                                                                                 supply chains enable the
                                                                          moment, Lufthansa’s rate of temporarily missing
    guarantee the passenger a smooth transfer. In Frankfurt, for
                                                                          luggage is around 1.4 percent. That means that for                                                                                                                              flower industry to supply     ■ What is your favorite place on the road?
    example, this period is one hour.                                                                                                                                                                                                                                                   Please send us your suggestions and we’ll
    When lost baggage is measured, smaller service providers and
                                                                          every 1,000 passengers, 14 pieces of luggage are
                                                                          incorrectly forwarded. This percentage is the same
                                                                                                                                                                                                                                                          consumers with fresh          contact you about publication. E-mail:
    airlines often statistically do better than larger ones. Why?         as at other international airlines.                                                                                                                                             blooms all year round.        redaktion.logistics@kircher-burkhardt.com


70 | LOGISTICS                                                                                                                                                                                                                                                                                                          LOGISTICS | 71
We used to cross Germany’s rivers.
Today, we also cross the world’s oceans.
                We offer integrated logistics solutions in all growth markets – one-stop, worldwide.
                Through Schenker, our logistics expert, DB guarantees clients an outstanding
                network in all of the world’s economic regions. That spurs international trade and, for
                instance, speeds the latest consumer electronics from Asia in our direction. What’s
                more, our international success as one of the biggest transportation companies around
                enables us to go on investing billions in Germany’s rail network. Learn more about
                the future at www.db.de

				
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