bdv connect 1 e - panalpina integration of its long-standing agent for the nordic market enables...

The Panalpina magazine 1_2006

connect

Panalpina’s logistics solutionsfor the telecommunicationssector

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A close teamThe transport logistics services delivered by Panalpina as lead logisticsprovider to the globally active Swiss technology group Bühler.

Page 4 Telecommunications

Overseas: Small but full of energy!Panalpina has taken over the Norwegian company Overseas ShippingGroup. The integration of its long-standing agent for the nordic marketenables Panalpina further to reinforce its leading global position in supplychain management for the oil and gas industry.

Page 10 Oil and Gas

Page 14 Supply chain management

Safety first!Panalpina’s commitment to Health, Safety & Environment (HSE)

0 HSE

Page 31 Publishing details

Page 24 Worldwide

Innovative, mobile, customer-focusedPanalpina offers much more than just forwarding. The logisticscompany is a network operator managing global goods flows asan integral part of complex supply chains. Modern telecommuni-cations play a central role here, since the information flow is cru-cial. Panalpina does not simply make use of telecommunications,however – it also delivers a very wide range of services to thetelecoms sector.

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We shall look back on 2005 as a particularly successful and exciting year.Having celebrated our 50th anniversary as a group in 2004, we began avery successful new chapter in the history of the company on 22 Septem-ber 2005: going public! The flotation of 57.36% of the registered sharesmet with exceptional interest on the part of investors. The timing of theIPO was perfect, and the investors recognized that Panalpina is correctlypositioned for profitable growth.

However, 2005 was not just the year of the flotation. At the press confer-ence held on 17 March 2006, we were able to announce another double-digit percentage rise in the Group results. Both gross and net revenuesrose by over 10%, while Group profit increased by more than 20%. Thesepleasing results are almost entirely attributable to organic growth. Theyreflect the positive business trend in the forwarding and logistics sectorand also amply demonstrate the wisdom of our “asset-light” strategy andour focus on core industries.

Several articles on these matters are to be found in this magazine. Onpages 4 to 9 we take a look at the breakneck speed of change in thetelecommunications sector, where developments show some similaritiesto those in the forwarding industry. Pages 14 to 19 consider the secrets ofsuccess of the long-term partnership between Panalpina and the globallyactive Swiss company Bühler AG. We then go on to introduce you to the Norwegian company Overseas Shipping Group. This firm, an acknow-ledged specialist in the oil and gas business, was one of our exclusivepartners for many years before being acquired by the Panalpina Grouprecently. Finally, pages 20 to 23 explain the efforts we are making in thearea of Health, Safety and Environment (HSE).

Gerhard FischerChairman of the Board of Directors

Dear Readers


Retail&Fashion

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Telecommunications

Innovative, mobile,customer-focused


What do the telecommunications and logistics sectors have in common?On the one hand, modern businesses and the globalized economy aregreatly dependent on the rapid development of the telecoms sector,while on the other, goods flows around the world enable the system tofunction smoothly. But those are not the only similarities.

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If you compare Panalpina’s current “Com-munications Directory” – the blue group-wide address list – with older editions, it'sclear that there have been changes regard-ing how key individuals are contacted.Mobile phone numbers are now indispens-able – in many cases people do not even tryto reach the person on their land line first.Just as e-mails can now be read nearly any-where in the globe, mobile calls can bereceived the world over – in Kazakhstan,Nigeria, Brazil, China, Canada or Italy,whether the person you are talking to is inan airport departure lounge, motorway serv-ice station, conference room or on a buildingsite! A communications company has to bemobile, and decision-makers in the logisticsbusiness can’t stay in the office the wholetime. They have to be wherever the cus-tomers need them, whenever they needthem. Different time zones are no excusethese days – goods flows move too fast forthat.

The impact this has on the logisticsbusiness was amply demonstrated recentlyduring a visit to Baku (Azerbaijan). BritishPetroleum is installing an offshore platformat a big site there, complete with equipmentand support structures (see article on pages

20 to 23 of this magazine). All the staff werein constant contact with one another, bothduring the site visit and while travelling, sothey were able to solve problems quickly,answer any questions that came up, andarrange meetings as necessary.

The mutual exchange of information didnot always operate so smoothly. It is hard toimagine how people used to get their workdone without mobile phones or global e-mailsystems. Those times were not that longago, though, when you consider the breath-taking speed of change. The mobile commu-nications sector met in Barcelona recentlyfor the 3GSM World Congress (GSM standsfor Global System for Mobile Communica-tion and represents some 80% of the globalmobile communications business; the “3”refers to the third-generation GSM stan-dard). Over 50,000 people attended, whereasthe first such event in 1991 attracted only afew dozen participants. Now, in 2006, theGSM system connects about 1.69 billionpeople, and according to Jorma Ollila, headof Nokia, global sales of mobile handsetsreached 795 million in 2005. If the suppliershave their way, this number will go upsharply over the next few years.

Retail&Fashion

No logistics without telecommunicationsForwarding has always relied on efficientcommunications. In the past, this was limit-ed largely to the flow of information betweensender, forwarding agent, customs author-ities and recipient, but now a whole range ofparties are involved. Today, Panalpina offersmuch more than just forwarding. It would bemore accurate to call us a network operatorthat manages global goods flows as an inte-gral part of complex supply chains. Our jobis to coordinate production and deliverydeadlines with numerous suppliers, andensure prompt delivery to assembly linesand sales outlets. Tasks include managingglobal supply chain processes and settingup reliable distribution systems. However,our work also involves designing tailoredsolutions, optimizing or reducing interfaces,organizing global goods flows, and offeringsupplementary services. None of these taskscould be carried out properly without mod-ern telecommunications. Of course, thelogistics sector has undergone hugechanges recently, particularly because of thetrend towards outsourcing and global sourc-ing – which in turn have been made possibleonly because of the rapid development of

Telecommunications

By Martin Spohn


electronic means of communication such asthe Internet!

Shipment data and forwarding timesused to be communicated by letter, and thenby telegram and telex, but nowadays elec-tronic systems can transmit information,pictures and sound round the world in sec-onds. Who could have imagined this at thebeginning of the last century, when wirelesstelegraphy was just being introduced forshipping, superseding flags, signal mastsand lanterns as the main means of commu-nication on the high seas? And who doesn'tremember the famous photo of the radioroom on the Titanic? At the beginning of1999 the era of wireless telegraphy formarine communications came to end withthe introduction of the new global maritimedistress and safety system (GMDSS).

Panalpina: always at the cutting edgePanapina has always been aware of theimportance of top quality communicationsfor its business, and has been a trendsetterin this sector, too. “IT and communications,the vital nervous system of the haulageindustry, saw early and intensive develop-ment at Panalpina,” as the book published in2004 to celebrate Panalpina’s anniversary

puts it, going on to say: “In 1970, an IBM sys-tem was installed at the holding company'sBasel headquarters that had previously beenlocated at Finatra AG, the corporation'smain controlling centre. The move made itpossible to provide analysis services to over-seas affiliates. An electronic data processingdepartment was established around thesame time. In 1976 — again long before thebulk of the industry — Panalpina opened acommunications centre in Zurich with twogoals: securing internal communicationsthrough a special arrangement with the PTTsatellite station at Leuk* and providing asupplemental communication channel forPanalpina's customers” (*PTT was the Swissstate post office and telecommunicationscompany; Leuk is a village in the Alps).

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However, Panalpina did not simply usetelecommunications to help it in its ownbusiness: it soon began to offer these ser-vices to other companies in the sector. Oneof many examples is the satellite stationmentioned above, which Panalpina broughtover to Switzerland from Japan. Panalpina’ssubsidiaries in Canada and New Yorkworked with Panalpina Airfreight to providefreight forwarding services for the secondAmerican moon landing in November 1969,shipping a directional beam aerial facilityfrom various production sites in Canada andthe United States to Guam within a tighttime-frame. This was a first-class supplychain management project, even if it wasnot yet described as such at the time.

The telecommunications industrymanufactures high-value products andinvests huge sums in developing new tech-nologies. Companies in this sector placehigh demands on themselves, and theircustomers expect nothing less than themost up-to-date, innovative and – ideally –cheapest products. That’s why these com-panies depend on service providers in thelogistics sector who can fully satisfy theirrequirements, and whose organizational >


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Telecommunications

structure meets their need for fast, reliable,global forwarding solutions.

Global network and inside knowledgePanalpina is one such logistics provider, andits customers include all the big names inthe sector, whether equipment manufactur-ers or network operators. The company haspositioned itself accordingly, and follows aclear strategy that focuses on the core activ-ities of air and ocean freight, together withthe associated supply chain managementsolutions. At the same time, Panalpina con-centrates on defined core industries. Thetelecommunications sector is one of these,as part of the hi-tech segment. Here,Panalpina benefits from its many years ofexperience, and from the in-depth know-ledge of the industry which enables itsexperts to design tailored solutions with realadded value for its customers. The wholestructure is underpinned by a comprehen-sive key account management system.Organizing itself in this way means thatPanalpina is in a position to gain a thoroughunderstanding of the connections betweenthe customer’s business and all the otherparties involved, and to know how theindustry really works. After all, if you want tobe of help to your customers, you need torelate to how the sector actually operates!

More than just making phone calls!Just as logistics providers have continuallyexpanded the services they offer, telecommu-nications, too, is now far more than a matterof just making phone calls. The developmentsof the past few years have brought aboutsocial changes that benefit people in theirprivate as well as their working environ-ments. This has brought the economy newsources of income, as information could bepassed on faster and with more transparency.

The enormous speed of technologicalchange in fixed line and mobile telephony,and the new generations of portable phoneswith more and more functions, offer consid-erable growth potential to suppliers as wellas network operators. New consumerdemand is being created through opportuni-ties to do things like transmit photos byphone, arrange appointments using onlinediaries, send e-mails, and gain wirelessInternet access, not to mention usingmobiles as games consoles, televisions orMP3 players. Providers are rushing to meetthis demand. The same goes for the abilityto talk on the phone, watch TV and work onthe computer all at the same time on onenetwork, thanks to broadband Internetaccess.

VoIP (Voice over Internet Protocol) – ortelephoning over the Internet – is gainingground both in the industrialized nationsand in many emerging markets. In the USA,the number of VoIP users has been predict-ed to grow from 4 million to 17 million overthe next few years. There is obviously hugepotential in China, too – a country whosesize means that communications are a vitalnecessity. (It is hardly surprising that mobiletelephony has taken off in China so quickly,and not just in the major urban areas.) VoIPcalls in China are forecast to rise to 210 bil-lion minutes by 2007, bringing in revenue ofover CHF 8 billion. In 2004, fixed line long-distance calls grew by 26.3% in China, whilemobile long-distance calls went up 11.4%and those on VoIP rose 39%.

A truly global businessHere are a few more impressive figures fromthe world of telecommunications: in 2005,nearly 817 million mobile phones were soldthroughout the world – up by a good 20% onthe previous year, according to the market

research company Gartner. And figures fromthe Global mobile Suppliers Association(GSA) show that over 31 million new GSMcontracts are taken out each month, equiva-lent to about 1 million per day! GSA reportsthat the markets are growing fastest inAfrica, Latin America and Asia, whichproves that it is by no means the prerogativeof the major industrialized nations to benefitfrom the development of telecommunica-tions technology. In reality quite the oppo-site is true, since the new products are giv-ing people in poorer or rural areasopportunities that would have beenunthinkable only a few years ago.

Award for outstanding service fromUS customerA global corporation like Panalpina is athome everywhere in the world, and as such,it is the obvious partner of choice for tele-coms companies. On the trade routebetween Hong Kong and North AmericaPanalpina cooperates with the telecomscompany Adtran, which last year presentedit with an award for “Outstanding ServiceProvider 2005”. Adtran is a leading manu-facturer of telecommunications devices, andproduces numerous products ranging fromdigital transmission equipment to Internetsecurity applications, via network routers.This award marks the customer's recogni-tion of Panalpina’s outstanding servicewhen forwarding goods between HongKong and Huntsville/AL. The two compa-nies are to expand their cooperation evenfurther.

Support in Nigeria…Panalpina helped set up a telecommunica-tions network in Nigeria that enables thou-sands of people to gain access to mobile andfixed line telephony. The network was com-missioned by the Nigerian network operatorGlobacom Ltd., in cooperation with tele-coms experts from a number of differentcountries. Siemens, a world-leadingprovider of network technology, was one ofthe companies involved in the project.Panalpina has been cooperating withSiemens for many years.

For this contract, Panalpina set up aspecial department in Europe to deal withthe delivery of equipment to Nigeria. FrankHofmann, Global Key Account Manager forSiemens, believes that individual customerservice is essential. “The ever more exactingdemands confronting us necessitate a


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proactive stance on product develop-ment.”He is convinced that the only way todefine and achieve targets is through a clearand open dialogue with the client. "Long-standing partnerships and the resultingfamiliarity with clients’ products andrequirements, backed up by the utmost flex-ibility, are pivotal to our clients’ success.And, ultimately, that's all that counts."

… and ChinaPanalpina has had a presence in Chinasince 1976 and today it has over 20 officesthere, offering the full range of servicesbased on extensive expertise in complexlogistics tasks. It is therefore no coincidencethat a major customer should entrust animportant contract to Panalpina.

The service portfolio was indeed veryvaried. For instance, Panalpina analyzed thesupply chain and drew up optimization pro-posals, used its EDI tools to ensure trans-parency in the chain, and handled the man-agement of returns and substitutedeliveries. It also consolidated and clearedproducts through customs, delivered to factories and project sites and organized theprovisioning of the necessary products atthe suppliers.

Comprehensive range of servicesPanalpina offers the full spectrum of servicesto the telecoms industry, including allaspects of global forwarding and logistics.They range from LCL and FCL ocean freightshipments, airfreight services including

chartering aircraft, customs clearance,inventory control and purchase order man-agement, right through to warehousing anda large number of added-value services. Thelatter are mainly offered for particular con-tracts individually. Quite often, Panalpinaemployees are “implanted” at the customer’spremises, where they work on site on anexclusive basis.

As a provider with over 30 years’ experi-ence, Panalpina has a thorough knowledgeof the industry, and it has its own presencein all the strategically-important markets inthe sector. Its centralized capacity manage-ment system means that Panalpina is able tocall on additional capacity in peak periods.This is an important factor, particularlywhen importers and retailers have to be supplied with new products.

The fact that it has its own projects divi-sion also makes Panalpina a preferred part-ner for network operators, as they are able tocall on Panalpina’s expertise when expand-ing in remote areas with poor infrastructure.In such cases, Panalpina’s experts work inlocally-based project teams, inspecting theterrain at the construction sites and handling the “last mile” and delivery of the components needed.

The high value of the products con-cerned means that great emphasis is placedon security during forwarding and storage.Panalpina has implemented a rigorous secu-rity programme, which includes certifyingthe facilities and ensuring that staff receiveappropriate training.


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Oil and gas

Overseas: small butfull of energyOslo-based Overseas Shipping Group is now part of Panalpina, the glo-bal transport and logistics group. The take-over of the Norwegian oil andgas industry specialist was effected retroactively per 1st January 2005.As Overseas has been a long-time exclusive partner of Panalpina, thetransformation is set to go smoothly.


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“Our cooperation with Panalpina has grownyear-by-year; we became their sole agentand they were our exclusive partner,”explains Tore Ruud, former co-owner andManaging Director of Overseas Shipping.Tore Ruud can be described as an impecca-ble Norwegian gentleman, tall, relaxed andmeasured, yet surprisingly spontaneous inhis personal views.

Asked about the characteristics of Over-seas Shipping, he does not hesitate for asecond: “We are an asset-free company. Wehave our desks, our PCs, our IT and connec-ting systems – and basta!” The company’sbiggest capital asset was the 20 years-plusexperience of its key members of staff, ToreRuud emphasizes. “We know our business.

This is why we do not have problems in buy-ing, leasing, renting etc. the services andequipment necessary to provide a top ser-vice quality.” With this philosophy, Overseasis very close to Panalpina.

Moving with the timesOverseas’ main activity is in the oil and gasindustry, where it achieves more than 70% ofits revenues. This was not always the case.The company was founded in June 1976 by a German named Holst Meissner whohad moved to Norway with his family. Hedeveloped his enterprise into one of the biggest liner agents in Norway.

Tore Ruud celebrates 30 years withOverseas this year. “I have been together

with Meissner for 20 years as a member ofthe board, without actually working for thecompany,» he explains. “Ten years ago, mypartners and I took over Overseas.”

At that time, the shipping agents' tradewas undergoing a fundamental change.Shipping lines replaced agents by openingoffices of their own in places they deemedimportant. Elsewhere, they started to chan-ge their agents.

“For our company, forwarding and espe-cially project forwarding seemed to offer asafer option” says Tore Ruud. Apparently hemade the right choice. During his ten yearsat the helm of the company, the number ofemployees increased from four to forty.Annual revenues soared from NOK 8

By Rolf Sulser

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million to NOK 200 million, and Overseaswas consistently profitable.

“Overseas today is one of the biggestmid-sized forwarders in Norway,» he adds“We have concentrated on Oil &Gas pro-jects, focusing on the upstream part of thebusiness, i.e. exploration and drilling. At thebeginning, the big orders were for offshoreoil rigs in Nigeria, e.g. for the Wilrig com-pany. We were already co-operating withPanalpina at that time.”

Oil & Gas heavyweightOverseas was, and still is, moving every con-ceivable kind of equipment connected withthe oil & gas industry. “We are working veryclosely with Houston-headquartered FMCEngineering, for example,” explains ToreRuud. FMC is one of the giants in this indu-stry. To meet the requirements of thisdemanding customer, Overseas operates aspecial office near FMC’s Kongsberg base inthe vicinity of Oslo. “We take care of theirforwarding and transportation needs includ-ing imports, exports and documentation. We are closely working together with Pan-alpina,” Tore Ruud explains.

Within the Aker Kvaerner Group, Over-seas Shipping has an implant. This officewithin the Egersund shipyard is directed byThor Høiland. “We are actually working ontheir computers,” he says illustrating thedegree of consolidation. “We take care of

their transportation needs, of customs pro-cedures and documentation, and we juststarted doing their invoicing for the materialthey send to subcontractors all over Europe.”Aker Kvaerner is the Norwegian market lea-der in engineering and construction servi-ces for the oil & gas industry. It was closelyinvolved in the development of the NorthSea oil fields for which it built entire plat-forms and loading buoys. At present, it sup-plies a lot of subsea valve and pipelinesystems connecting outlying wells to a cen-tral platform. The replacement of obsoleteplatform parts with new modules containingequipment and accommodation is another,increasing business sector.

Aker Kvaerner's specialisation meansthat much of its shipments are large, i.e.oversize or heavy. “We often go to the sup-plier and the place of destination to verifymeasurements, weights and accessibility,”explains Thor Høiland. Overseas then worksout a number of proposals featuring differentroutings, including procurement of equip-ment for transportation and transhipment aswell as the necessary local expertise. “Local”in such cases may denote the stormyBarents Sea, the shallow Caspian Sea or aPolish welding yard.

The aim of all these efforts is of course tooffer Aker Kvaerner the best possible choiceof options, thus providing it with a competi-tive advantage. “This is not new to us, butbeing part of Panalpina is opening up addi-tional resources for us,” Thor Høilandaffirms. An increased choice of resources of course translates into increased optionsfor the customer.

Naturally, 99% of Overseas’ business atEgersund is with Aker Kvaerner. Neverthe-less, Thor Høiland emphasizes his strive fordiversification. “But we offer our expertise inthe transportation of heavy and oversizedequipment on the market and to any poten-tial customer.”

At present, the biggest challenge bothfor Tore Ruud and Thor Høiland is the multi-national Kashagan project (see separate box)in which Aker Kvaerner is taking part.

Oil and gas

Tore Ruud, Managing Director of Overseas Shipping.


Diversifications and synergies…Diversification is a keyword for Tore Ruud,too. “Together with Panalpina, we can bothexpand our traditional forwarding segmentand add more weight in our speciality, theoil & gas business.” he says.

Panalpina was not well-known for gene-ral cargo in Norway, Tore Ruud maintains.This is no longer the case as Overseas Ship-ping just changed its name to Panalpina AS,contributing as its dowry its strong localmarket presence. In return, Overseas willexpand its range of services by making useof Panalpina's worldwide network.

“As a mid-sized company with 40employees we do not have the means toserve everyone with everything, or take partin each and every tender. That’s the dilem-ma of a mid-sized forwarder,” Tore Ruudexplains. “Being part of a bigger group willchange this, allowing us to boost our reve-nues from traditional forwarding beyond thepresent 30%.”

There is another important aspectwhich is foremost in his mind. He is aware ofhis direct responsibility for over 100 people,employees and their relatives put together.“When Panalpina proposed, we knew weshould accept it. To be part of a big group isboth good for us and our employees, and forthe group. And I think it makes a differenceto be a Panalpina company rather than justan agent of theirs.”

And what about his personal plans? “Ishall stay on board for the foreseeable time,as ‘country’ manager Norway”, Tore Ruudreplies, thoughtfully adding a personalobservation: “You know, I am 63, and at thatage you do not meet same-age customersany more. Everybody is younger, and you donot have the same ideas, interests and back-ground as they have.”

This is why he wants to bring youngerpeople into the company who have ideas oftheir own and are willing to work hard tomake them a reality.

…and their dangersIn a takeover, there is always a possibilitythat the new owners impose their businessmodel and procedures to the detriment ofemployee motivation. Tore Ruud dismissesthis danger outright: “We have been part-ners with Panalpina long enough to know,and appreciate, their way of doing business.I am sure that they will not interfere as longas we deliver. And in the past, as I said, wehave always delivered.”

This positive attitude is obviously sha-red by the employees, many of which confir-med in private that they see the take-over asa chance rather than a threat. “We are veryclose to Panalpina in Sweden,” Tore Ruudadds. “Their mentality is close to ours; wehave a similar way of life and doing busi-ness. What is working well in Sweden willalso work in Norway, I am sure.”

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EgersundEgersund is situated at Norway’ssouthern west coast some 75 kmsouth of Stavanger. It is connected toStavanger and Oslo by a railway line,and to Denmark (Hanstholm/Jutland)by a daily ferry service. In the past,the city used to be an important cen-tre for fish processing and pottery.Today, 550 of its around 10,500 in-habitants work for Aker Kvaerner.About a quarter of the population isdirectly or indirectly dependent onthis company.


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SCM

At the heart of Bühler’s transport logistics in Uzwil (Switzerland): the loading hall.


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A close team2003 saw the globally active technology group Bühler put its world-spanning transport logistics up for tender. Having clinched the contractwith an attractive submission, Panalpina has now assumed the role oflead logistics provider for the group.

Rudolf Münger, Head of Distribution, Bühler AG (left) and Rolf von Allmen, Head of Logistics& Supply Chain Management, Panalpina Regional Center Europe & AIMEC.

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The key finding from a survey conducted byBühler in 2003 into its transport logisticswas that the technology group, headquar-tered in Uzwil (Switzerland), was at thattime collaborating with a full 220 forwardingand logistics agents across the globe. Thisprompted Bühler to revamp its global logis-tics strategy through the appointment of alead logistics provider (LLP) to handle boththe production plant and spare parts busi-ness of the group. Three objectives wereparamount: first, the new partner had to

coordinate all Bühler shipments worldwide(procurement, inter-factory and distributionlogistics). Bühler’s second priority was tofind a partner with a global logistics infra-structure which it could tap into. The thirdgoal, specifically targeted by the LLP con-cept, was process optimization, i.e. a gener-al shortening of transit times for deliveries,coupled with a speeding up of overallprocesses and palpable quality gains. WithBühler footing an annual CHF 50–80 millionfreight forwarding bill, the three-prongedstrategy was generally designed to cutcosts. The boldness of the project and thedemands it would place on both Bühler andits new logistics partner were clear from thevery outset.

To forge a strong identity for the Bühlerand Panalpina team in the face of the chal-lenges ahead, Markus Stieger, LogisticsServices Manager at Bühler, christened theproject “Magellan” in memory of the Por-tuguese seafarer Ferdinand Magellan, who

in the 16th century became the first man tocircumnavigate the globe. As the name sig-nalled, it was to be a major undertaking overa long period. Indeed, the cultivation of along-term partnership was the Bühler logis-tics team's avowed priority.

Panalpina scoops lead logistics provider contractThe close business association betweenBühler and Panalpina Switzerland, stretch-ing back over decades, made Panalpina anatural candidate for the LLP contract in2003, and Panalpina’s attractive tender ulti-mately secured the deal. As to what tippedthe balance in Panalpina’s favour, Bühler’sDistribution Manager Rudolf Münger canreel off a host of convincing arguments: “Ourmany years of collaboration with Panalpinagave us first-hand insights into the group’sperformance and quality standards. We rec-ognized Panalpina’s in-depth experience inproject and plant shipments, and were

Roller mill stands are vital components of the mills produced by Bühler.

SCM

Markus Stieger, Head of Logistics Services,Bühler.

By Michèle Thüring


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acquainted with its world-spanning trans-port logistics network underpinned by localsubsidiaries.” The heavy focus of many ofthe other tenderers on a particular nichemeant that they were unable to offer theintegral package required by Bühler. AsMünger sums up: “It soon became clear thatour partner of choice for the wide-rangingglobal transport logistics needs of our plantand spare parts business would be noneother than Panalpina.” And Stieger adds:“Given that we needed a logistics partnerthat is familiar with the ins and outs of ourbusiness, the prime consideration was anunderstanding of and responsiveness to ourrequirements, rather than price. The firstquestion we asked all tenderers was howthey proposed to tackle transport logisticsfor us. And Panalpina’s response was imme-diately convincing.” As Rolf von Allmen,Panalpina’s Magellan Project Manager,recalls: “We made it clear that we had muchmore to offer than a global network plusassociated expertise – namely the ability,

gained through experience, to fine-tune ourservices to Bühler’s specific transport logis-tics needs.”

As no transport logistics operationinvolving 220 companies can be reconfig-ured into a one-to-one arrangementovernight, the two partners agreed to imple-ment a pilot scheme between January andJune 2004. All processes and costs wereanalysed and investigations performed onroutes already handled by Panalpina. Thefindings served as the basis for the cooper-ation agreement and subsequent phasedrollout.

Components from all corners of the earthBühler’s main plants are located in Europe(Uzwil, Madrid and Brunswick), India (Ban-galore) and China (Wuxi and Shenzhen). Thetechnology group’s six logistics platformsserve Europe, Latin America, North Ameri-ca, southern Africa, China and SoutheastAsia. The first three platforms have so far

adopted the LLP concept, with the rest dueto follow suit by the end of 2006. Panalpinawill then take charge of Bühler’s entire for-warding logistics chain at global level. A fullcomplement of logistics services will be pro-vided: Panalpina will handle Bühler’s air-freight, seafreight and project consign-ments, while also overseeing localshipments, customs clearance etc. More-over, as LLP, Panalpina will procure, manageand coordinate numerous forwarding ser-vices provided by jointly selected sub-contractors.

Freight flows will encompass procuredgoods deliveries, inter-factory transfer anddistribution. The focus will therefore be onthe efficient channelling of supplier con-signments to Bühler sites, goods move-ments between Bühler subsidiaries, andmachine deliveries from Bühler’s factoriesto its customers. A typical process couldinvolve the handling of an order for a 2000-cubic-metre milling system weighing500–600 tonnes. The installation’s

The Bühler technology group manufactures pasta-making equipment.

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main components (e.g. roller mill stands) arebuilt in Uzwil, with further parts supplied bythe factories in Brunswick and/or Madrid.Additional deliveries from Bühler’s suppli-ers may be routed to Uzwil, directly to apredetermined consolidation point (e.g.north European port) or straight to Bühler’s customer. Panalpina superintends the con-solidation of the individual consignmentsand arranges sea shipment and oncarriageof the complete facility to the customer’spremises.

The management of spare parts logis-tics is a further focus. Bühler’s central spareparts warehouse is located in Uzwil, withsmaller warehouses at the regional distribu-tion centres of the six worldwide platforms.Over the next two years, the Magellan teamwill press ahead with a general streamliningof the spare parts logistics processes thatwill include a restructuring of the spareparts management regime and of the supplyservice to the regional distribution centres.

Pivotal role of ITSignificant headway has been made withthe transport logistics scheme. The wholeteam is satisfied with the achievements todate and is confident that the rollout will becompleted on schedule by the end of 2006.Looking to the challenges ahead, MagellanProject Manager Stieger singles out threekey factors: transparency, flexibility andinterconnectivity, i.e. the integration of sys-

tems. “Speed, economy and reliability arethe watchwords of our transport logistics,”is Münger’s verdict, though he hastens toadd: “And IT holds the key to the scheme’ssuccess.” What makes the project so fasci-nating in von Allmen’s view is the dynamicnature of the market, the complexity of thebusiness and Bühler’s innovative spirit, allof which consistently throw up fresh prob-lems. “To see ourselves navigating calmwaters in two years’ time would be an illu-sion: as logistics providers, we must bealways on the alert to address new chal-lenges.” When the LLP concept reachesfruition in late 2006, the three gentlemenwill certainly not be twiddling theirthumbs, but will be chiselling away at new strategies to optimize and refine the logis-tics operation.

Anyone who has spoken to Markus Stieger, Rudolf Münger and Rolf von Allmenis struck by their mutual understanding,their instinct for acting concertedly towardsa common goal. This is, quite obviously, aclose team – three men who can safely steerthe ship through any waters, whether calmor stormy. Through regular visits to thenational subsidiaries and presentations ontheir transport logistics philosophy, the triohave enthusiastically furthered their causeand won the wholehearted support of allinvolved in the Magellan project.

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Bühler has its own on-site container terminal at Uzwil (Switzerland), for optimum transferfrom road to rail and efficient loading/unloading of 20’ and 40’ containers.

SCM

Bühler AGBühler AG is a multinational technol-ogy group, whose origins date backto 1860. Bühler supplies its clients inthe food, animal feed, chemicalprocess engineering and die castingindustries with customized plant,machinery and process technology.The Swiss company is global marketleader in the food, chemical processengineering and die casting sectors.The group is split into three businessareas: the Grain Processing Divisionproduces systems for milling, animalfeed manufacture, malting, maltcrushing, rice processing and silostorage. This business area alsoincludes colour sorting machines. TheEngineered Products Division devel-ops production plant for foodstuffssuch as cocoa, chocolate and pastaand for coating materials. The thirddivision produces various types of diecasting equipment.The approx. 6,100-strong globalworkforce achieved sales of CHF 1.5bn in 2005.


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Assembly shop for die casting equipment at the Bühler plant in Uzwil (Switzerland).


Anyone stepping into the entrance hall ofthe branch in Baku/Azerbaijan noticesimmediately that HSE (Health, Safety andEnvironment) is no empty promise atPanalpina. Safety notices and behaviourrules are displayed at every turn. The stepsare fitted with non-slip material, mirrors inthe stairwell ensure that people do not bumpinto each other and “BP’s Golden Rules ofSafety” are conspicuously displayed on thewall. On every floor there are people trained

in first aid and firefighting. In the event of anemergency, all the employees know exactlywhat to do. Drills take place regularly toensure that this remains so.

All these things are not just for show butform an integral part of daily business andthe company culture. “All employees haveattended an HSE training workshop andwere tested individually,” explains AfganMustafayev, HSE Manager Central Asia.“People understand that HSE forms an

important part of their jobs.” This involvesnot only adherence to elementary securityregulations but also issues such as econom-ical use and eco-friendly disposal of officematerials such as paper and batteries.

Economically sound investmentsPanalpina has obtained ISO 14001 and OH18000 certification and is willing to spend aconsiderable amount on its principles. “InCentral Asia we invest around USD 600,000

Safety First!Health, Safety and Environment – HSE for short – has become an essen-tial aspect of everyday business. Panalpina is strongly committed tomeeting customers’ needs, thereby achieving a competitive advantage.

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HSE

By Martin Spohn


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in HSE every year,” Mario Kropf, ManagingDirector of Panalpina Central Asia, empha-sizes. However, it would be wrong to viewthis area just as a cost factor. Instead, a con-sistent HSE policy offers tremendous possi-bilities that can be tapped into. “Our policyhas also generated value for the compa-ny,”he explains. “If we run our business inan ecologically and ethically correct way, weare also contributing towards our country’sdevelopment.” Furthermore, it makes eco-nomic sense: a lot of money can be saved byusing resources sparingly and absencesrelating to accidents and sickness are great-ly reduced. Working economically and with-out accidents also results in greater efficien-cy and therefore higher productivity, addsLynsey MacIver, Head of Corporate HSE atthe Basel headquarters, stressing: “We arealso determined to provide our employeeswith a safe working environment.”

Murad Housseinov, Business Unit Man-ager in Baku, agrees. It would be wrong andnegligent to save on HSE, he emphasizes.“Furthermore, the customers – particularlyPanalpina Azerbaijan's main customer,British Petroleum (BP) – expect nothing lessthan consistent adherence to all of its regu-lations.” Even the office building wasrestructured and equipped according to BPregulations. “We upgraded the buildings and

vehicles ourselves. For example, weinstalled special safety equipment on thetrucks for the truck drivers and in the build-ings we installed emergency exits, fireescapes, fire extinguishers, etc.”

Panalpina pursues a clear “asset-light”strategy worldwide and therefore does nothave much tied-up capital or infrastructuresof its own. This means that the company isexceptionally flexible and can offer its serv-ices wherever the customer requires them.However, it also means that in many areasthe company works with subcontractors.Adherence to the high quality standards isensured by applying the “best-in-class” sys-tem, thanks to which Panalpina alwaysworks with the best suppliers. Particularly inthe HSE segment, this is an important issue.All subcontractors must meet the standardsof Panalpina which bears full responsibilitytowards its customers.

Close cooperation with subcontractorsHow does Panalpina ensure the proper con-duct of its partners? “We test them meticu-lously and also provide them with a lot ofsupport,” explains Lynsey MacIver. “We pro-duce a comprehensive questionnaire, checkwhether the specifications given are imple-mented in practice, and observe and evalu-

ate the services. If we identify any deficien-cies, we help our partners to iron them out.This is what our customers expect of us,”the Head of Corporate HSE tells us. AfganMustafayev agrees: “It is important to us tosupport the subcontractors both with train-ing and financially, thereby improving theoverall HSE situation. Once we evenequipped partners in the Siberian port ofNakhodka with safety equipment.”

Customer-orientated approach“HSE at Panalpina is clearly customer-orien-tated. We don't want to write fat tomes ontheory and miss customers’ needs. It isimportant to know customers’ requirementsand set ourselves up accordingly,” Lynseysays emphatically. At present, it is still thecustomers in the oil and gas industry whohave the highest HSE standards. However,she has also noticed companies in other seg-ments scrutinizing their HSE policies andlooking for new solutions. She advises thesecompanies and is sometimes invited to givetalks or presentations on the subject. “Atti-tudes towards HSE have clearly changed inthe last few years. Companies are obviouslyhandling the issue proactively and not set-tling for half-measures. This certainly hassomething to do with the fact that complexsupply chains involve more parties than >


before. Any company guaranteeing highstandards to its customers demands thesame from its suppliers, these suppliersdemand it from their partners, and so on.”

Lynsey has many years of experience,for she completed her HSE training in Scot-land after graduating in Chemistry andworking for an oil & gas company inAberdeen. “I enjoy the positive attitudetowards HSE that I experience at Panalpina.In other companies we often encounterresistance, but not at Panalpina where thereis a lot of enthusiasm and cooperation.Among other things, I would attribute this to the company's customer-orientatedapproach. The people can see the benefitsand greater customer satisfaction in theirown areas.”

BP in Baku: HSE as a success factorThe pace is still defined by energy compa-nies, as shown by the example of BP in Azer-baijan. For this company, a good HSE organ-ization is not just a "nice to have" – quite thecontrary: any company that does not fulfil

BP’s requirements will not do business withthem at all or will lose the business. In termsof security, health and environmental pro-tection, BP pursues a clear zero-tolerancepolicy and always integrates HSE as a fixedpart of its calls for tenders. The value placedon it is correspondingly high: in the call fortenders for the large Shah Deniz project inAzerbaijan, for example, HSE had a weight-ing of almost 30 percent, considerably morethan the price of the transport services. Shah Deniz is a massive gas condensatefield in the Caspian Sea, around 100 kilo-metres south of Baku, the capital of Azerbai-jan. In this multi-level project, BP is in chargeof developing the deposits and extractingthe raw material. On a large site near Baku,the British company erected the offshoreplatform with all the components requiredfor installation and anchoring, includingthree bases each weighing 1,500 tonnes.Right from the start, Panalpina was a reliablepartner in this project. It supported BP in alllogistical matters – including ensuring thatthe individual parts were consistently deliv-

ered when required – and transported over35,000 tonnes of goods by air and seafreight, inland shipping, truck and train fromseveral countries to the site in Baku. A teamof four Panalpina employees also workedonsite as “implants” at BP. Panalpina alsoruns a reloading and storage yard whichhas, among other things, a covered buildingfor interim storage.

This yard corresponds to the strictestHSE standards. We are able to see this forourselves during a visit. Once we have iden-tified ourselves, we march to the main build-ing where we are supplied with helmets,protective goggles, gloves and safety shoes.Whenever goods are being transported onthe site or other procedures are taking place,anyone outside the administration buildingmust wear this protective gear. The storagebuilding itself is, of course, equipped withfire extinguishers, etc.

Zero toleranceRegulations are even more strict on theactual job site where the platform from

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HSE

Mario Kropf, Managing Director of PanalpinaCentral Asia.

BP’s “Golden Rules of Safety” at PanalpinaBaku.

Lynsey MacIver, Head of Corporate HSE atthe Basel head office.

Afgan Mustafayev, HSE Manager for Central Asia.

Mike McCormack of British Petroleum. Murad Housseinov, Business Unit Managerat Panalpina Baku.


which gas will be pumped from the CaspianSea in summer 2006 is being erected underthe direction of British Petroleum. We enterthe reception building through a sort of lockgate. Of course we have an appointmentand present our identification papers at theentrance. Our escort is already expecting us:throughout our entire visit to the site wecannot move anywhere without an escort –that is an absolute rule. To ensure that weknow why, we are first shown a 15-minutevideo informing us about the dangers, rulesand regulations and then sign a form con-firming that we have understood the issuesat hand. We are relieved that we only have tocomplete the short programme. This isbecause we are permitted to visit the site, but not the platform itself. If we wantedto go there, we would require four hours oftraining!

Once our baggage has been checked – asmall video camera, photographic equip-ment and our bags containing the protectivegear provided by Panalpina Baku, we enterthe office complex to put on the overalls,security shoes, protective goggles, helmetand gloves. We are greeted by Mike McCor-mack, Project Procurement Logistics Man-ager, and once more informed of the mostimportant rules of conduct. Mike who, asmanager of the entire logistics operation forthis Panalpina project, is the most importantcontact on site, speaks with a quiet but firmvoice. “Health, safety and environment arevery, very important to us and that is whywe are continuously pushing forward in thisarea. Naturally, we require the same fromour logistics suppliers, which is why wedefine the requirements right from the time of calling for tenders and thereby clearly communicate that anyone wantingto do business with BP must meet high standards.”

Understanding the meaning of HSEWe therefore assume that Panalpina, as theleading logistics supplier at the Shah Denizproject, has met these requirements. MikeMcCormack confirms this and adds thatstrict adherence to the requirements ischecked. "We expect a company likePanalpina to understand how importantHSE is to BP, and to be able to relate to this.In this instance, tolerance would be com-pletely misplaced." We can see that BPleads by setting a good example: on theentire building site, full protective clothingmust be worn at all times, except within a

clearly defined, fenced-off corridor in whichthe sanitary facilities are also located. Wespot a letterbox in which employees canpost suggestions for improvement and alsoreport incorrect conduct. “The intention isnever to tattle on colleagues but solely toavoid accidents. And this is what we havein fact achieved: for over 500 days nobodyhas had an accident serious enough to takea day off work. We can be proud of that,”stresses Mike McCormack. His helmet hasfive stars on it. Each star stands for excep-tional achievements in the area of HSE.Anyone who has earned the five stars, how-ever, cannot rest on their laurels or be neg-ligent, because misconduct is punished byremoval of one or more of these badges.

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HSE at PanalpinaHSE (Health, Safety and Environ-ment) is taken very seriously by Pan-alpina, largely because of Panalpina’sleading role as a transportation andlogistics provider to the oil and gasindustry. The global and strategicresponsibility is centrally controlledby Corporate HSE, a staff unit repor-ting to the Chief Operating Officer.The Head of Corporate HSE is LynseyMacIver from Scotland. After gradua-ting in Chemistry, she completed avariety of HSE courses and worked inthis segment in oil and gas compa-nies in Aberdeen. She moved to Pan-alpina in 2004. Corporate HSE produ-ces all the handbooks, develops thetraining programmes and provides thenecessary tools to local organizations.It also defines the obligatory HSE pro-grammes, determines the standardsand organizes internal and externalaudits. Panalpina concentrates on avariety of programmes, each of whichcome under the scope of either health,safety or environment:– Health Control– Safe Transport– Personal Protective equipment– Training for work with dangerous

goods or in a potentially dangerous environment

– Emergency Response scenarios– Sustainable transport solutions

(Eco-Transport)– Sustainable use of resources and

materials (eco-consumption)One of the pillars of Panalpina’s HSEstrategy is the certification of localorganizations according to ISO 14001(environment) and OHSAS 18001(health and safety). These certifi-cates are often already required bycustomers at the time of tenderingfor business. In the course of the cer-tification process, all employees at alllevels of the units checked are testedindividually. In 2005, organizations inCentral West Africa, the CIS, Scandi-navia and Central Asia were certifiedand in 2006, branches in northernand southern parts of West Africa,the United Kingdom and Ireland, andthe Middle East and South East Asiawill be certified. Furthermore, Panal-pina is involved in the HSE initiativesas part of the Freight Forward Inter-national (FFI) interest grouping inBrussels.


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Partnership with Siemens in southern AfricaSouth Africa September 2005 marked the opening of a new logis-tics centre at Johannesburg International Airport by Panalpina’sSouth African agent Safcor Panalpina. Developed in collaborationwith Safcor Panalpina’s client Siemens Southern Africa, the facilityprovides 10,000 sq m logistics space and 1,700 sq m officeaccommodation. Siemens will occupy 60% of the floor area in thenew logistics hall, while the remaining 40% will be used byHewlett-Packard and some of Safcor Panalpina's other high-techclients.For Safcor Panalpina, the new logistics centre represents a gigan-tic leap forward. “Despite the rampant growth in airfreight vol-umes here over the past 20 years, time had stood still at Johannes-burg International Airport in terms of freight handling methodsand facilities,” Safcor Panalpina Chairman Philip Womersleyremembers. “The fact that we can now shift uncleared cargodirectly to our logistics centre shortens movement distances, whilesignificantly tightening up our handling operations," he adds."Consignments can now be seamlessly processed and immediatepreparations made for delivery.”Safcor Panalpina’s new facility has thus paved the way for anunbeatably professional, efficient and reliable management of theentire logistics operation in southern Africa. The current trendamong multinational clients is to outsource their complex supplychain systems to logistics companies in order to focus on theircore business. With its new hub at Johannesburg InternationalAirport, Safcor Panalpina has provided the perfect enhancement tothe Panalpina Group's comprehensive logistics offerings.Safcor Panalpina has for many years partnered the southern

African subsidiary of Siemens AG, the electronics giant based inBerlin and Munich (Germany). Founded over 150 years ago andactive in 190 countries, Siemens ranks among the world's largest,most time-honoured electronics and electrotechnology companies.The Siemens Group operates in the fields of information and com-munications, automation and control, power, transportation, med-ical solutions and lighting. Siemens’s presence in southern Africastretches back more than 105 years.As Womersley emphasizes: “This joint venture is a prime illustra-tion of the kind of methods we adopt in dovetailing our services tothe specific needs of key accounts such as Siemens.” SafcorPanalpina provides Siemens Southern Africa with an all-roundlogistics package that includes goods receipt, quality control,warehousing, order picking at the warehouse for consignments to Siemens clients, dispatch preparation, delivery to Siemens customers, stocktaking and returned goods processing. At the centre’s inauguration, Divisional Managing Director of SiemensL&A Raj Siriram pointed out that Siemens was breaking newground in southern Africa by outsourcing its logistics to SafcorPanalpina. He regarded the collaboration between Siemens andSafcor Panalpina as a genuine partnership entailing enormousinvestments on both sides. Siemens had also supplied the techn-ology for the logistics centre.The development scheme for the logistics centre plus officeaccommodation was initiated by Safcor Panalpina’s parent compa-ny, Bidvest, in association with its business partner Airports Com-pany of South Africa (ACSA), and implemented by SafcorPanalpina and Siemens Southern Africa.

Worldwide

Gerhard Fischer, Chairman of Panalpina, and Raj Siriram celebrate the opening of the new facility.


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From left to right: Philip Womersley, Raj Siriram and Gerhard Fischer.


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Worldwide

Palletized helicoptersBrazil/Luxembourg/Canada During a freak windstorm inMacae (Brazil), several helicopters supporting the Brazilian oil andgas industry were blown over and damaged. AcroHelipro GlobalServices, a customer of Panalpina Vancouver's Helicopter Ship-ping Division, obtained the contract to repair two of the SikorskyS76 helicopters, which were loaded onto airline pallets in Rio, then

trucked by Panalpina Rio to Viracopos. Next, a Boeing 747-400freighter operated by Cargolux flew the helicopters via Luxem-bourg to Seattle, where Panalpina Vancouver had a truck waitingto deliver them safely to the repair facility. As usual, the key tosuccess was meticulous planning, backed up by excellent team-work from all the Panalpina offices involved.

www.panalpina.com/helishipCanada Panalpina has added a new section to its website:www.panalpina.com/heliship. It will be run by Panalpina Heli-copter Shipping Division in Vancouver (Canada), which is respon-sible for all services connected with the transport of helicopters.Panalpina’s helicopter transport specialists have over 30 years ofexperience in this sector. They are therefore fully conversant withthe requirements of their customers in the helicopter industry. Inpartnership with the global Panalpina network, the Panalpina Heli-copter Shipping Division transports helicopters, spare parts andcomponents to any destination by sea or air. The division coversthe whole range of Panalpina services: meticulous route planning,transit insurance, moving the consignment by road to the airportor port, supervising loading, seeing to the necessary customs for-malities, unloading and final delivery to the customer.


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A helicopter in the holdSingapore/Canada Panalpina Vancouver’s Helicopter ShippingDivision collaborated with Panalpina Singapore to transport an S-61N civilian helicopter by ship from Singapore to Vancouver(Canada) for delivery to Heli-One, a subsidiary of CHC HelicoptersInternational. The helicopter, which measures 16.0 m x 3.0 m x 4.5m, flew from Thailand to the Seletar military air base in Singa-pore. Panalpina was responsible for coordinating this challengingassignment: for instance, it brought in a 20-ton crane to dismantlethe rotor blade. As well as selecting a suitable carrier for thisunconventional cargo, Panalpina saw to the customs formalities.The actual transportation process presented the Panalpina teamwith a number of challenges: they had to work out the safest and

most efficient way of moving the helicopter from the air base tothe port on a low-bed truck, bearing in mind the height and widthconstraints. A police escort helped to ensure that the transferwent smoothly. The helicopter was finally winched up and loadedonto the ship. A 200 m cable allowed the helicopter to be lifted ina controlled manner. Thanks to a special agreement with the Sin-gapore port authorities, CHC engineers were permitted to attendthe loading of the ship to check that the helicopter was safelystowed and secured. The team of representatives from PanalpinaVancouver's Helicopter Shipping Division and Panalpina Singa-pore carried out the assignment to the complete satisfaction ofCHC Helicopters International.


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Worldwide

All’s well that ends wellAustria/Italy/Albania Following a successful tender submis-sion, Panalpina Vienna was appointed by Viennese-based VATECH T&D as forwarding agent for a series of shipments requiredfor a major project in Albania. The contract involved the handlingof over 100 truckloads of freight supplied from Austria, Germanyand Italy plus delivery by canvas-top truck to building sites inSelita, Traktori, Shkozet, Kavaja, Shkodra, Fiber and Tirana or,alternatively, to a stockpile set up in Tirana. The contract speci-fied routing via Trieste/Durres. The lack of suitable infrastructurein Albania made access to many locations extremely difficult. Theconsignments routed via the stockpile were delivered to the rele-vant sites at the appointed time by Panalpina’s Tirana-based part-ner A&A. The cargo included eleven transformers weighing 50-55tonnes per unit, delivered by low-loader from Italy via Trieste-Durres. The poor highway conditions necessitated detours and, in some cases, the provision of new access roads. Apart from for-warding, Panalpina was also responsible for mounting the trans-formers on their bases. Depending on the spatial constraints onsite, unloading was by crane or hydraulic device. Given the lackof hydraulic unloading specialists in Albania, experts had to be flown in from abroad as needed. To avoid waiting times, thearrival of the trailers was meticulously coordinated with thedeployment of the site assembly teams. Consignee Kesh Tirana

entrusted Panalpina’s Tirana-based agent A&A with the handlingof customs formalities. All three partners VA TECH T&D, A&ATirana and Panalpina Vienna were present to witness the suc-cessful mounting of the heavy plant.

Representatives of VA TECH, A&A and Panalpina on site in Albania.

Heavy parts sent by DanubeAustria/Belgium/Iran Schoeller Bleckmann Nooter Appa-ratetechnik GmbH – SBN for short – is a globally active manufac-turer of machinery for the fertilizer industry. In December 2005,SBN contracted Panalpina Linz to load four heavy parts destinedfor a fertilizer plant onto two Danube ships bound for Antwerp: areactor weighing 370 tonnes and measuring 30,200 mm x 4,500mm x 5,300 mm, a condensor weighing 310 tonnes and measur-ing 18,500 mm x 4,100 mm x 6,400 mm, a stripper weighing 218tonnes and measuring 13,500 mm x 4,300 mm x 4,300 mm, and ascrubber weighing 82 tonnes and measuring 8,500 mm x 3,600mm x 4,100 mm. In Antwerp the goods were transferred to aheavy transport vessel. The components were bound for Iran,where they would form the core of a fertilizer plant(ammonia/urea) built by Japanese engineering company ChiyodaCorp. of Yokohama. “Since there were low water levels in theDanube in December of last year, we had to divide the loadbetween two ships to reduce the draught,” explains Peter Gahleit-ner of the Project Department at Panalpina Linz. Thanks to excel-lent coordination between all the partners involved in this job –including the heavy load specialist Felbermayr, the Danube ship-ping company Panta Rhei and the transshipment company in

Antwerp – the parts arrived in the Belgian port on schedule,ready for the onward journey to their destination in Iran.


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Motorsport: A1GP Cup of NationsSouth Africa/Indonesia/Mexico/USA/China The A1 GrandPrix is the “World Cup of Motorsport”. Driver is pitted againstdriver, and country against country. The A1 Grand Prix bringstogether 25 nations, covering about 80 percent of the globe.While technology and innovation have an important part to playin this racing series, success is very much down to the individualdriver, whose courage, driving skills and flair are what ultimatelydecide victory or defeat.The organizers of the A1 Grand Prix asked Panalpina AirfreightManagement Ltd., Luxembourg, to transport the racing cars of allparticipating teams to and from five races on the tour, whichbegan in September 2005.After the race in Durban (South Africa) at the end of January, 250tonnes of freight – racing cars, spare parts and equipment – wereshipped to Sentul (Indonesia) for the next meeting. Three MKAirlines charter flights were booked for this assignment. Panalpina Airfreight collaborated with the Panalpina agent inSouth Africa – Safcor Panalpina – in arranging the transport ofthis valuable cargo. The race held in Durban on 29 January 2006 – the seventh in theA1GP – was won by the 33-year-old Dutch driver Jos Verstappen.Some 100,000 spectators watched the main race through thestreets of Durban, as Verstappen, a former Formula 1 driver,chalked up the first victory for the Dutch A1 team. The race in Sentul on 12 February 2006 – the eighth in the A1Grand Prix series – was won by Nicolas Lapierre of the FrenchA1 team, who beat the UK and Mexico in the sprint race. Thiswas the French driver’s eleventh win of the season. This timeLapierre, who was second off the grid, made short work of therace: he overtook Britain’s Robbie Kerr, who started in pole posi-tion, at the end of the first lap and maintained his lead right tothe finish. The next race weekend (the ninth in the A1GP series) was heldon 26 February 2006 in Monterrey (Mexico). Again, PanalpinaAirfreight transported the cargo for this race, chartering two air-craft, one from Evergreen International Airlines and the otherfrom Kalitta Air. The goods were moved from Monterrey to Laguna Seca (USA),where the penultimate race was staged on 12 March 2006. Thefinal destination is Shanghai (China), where the last race in theA1GP series will take place on 2 April 2006. Panalpina is respon-sible for shipping the cargo from Laguna Seca to Shanghai. MikeZimmerman, Head of Event Logistics at Panalpina Airfreight inLuxembourg, calculated that 25 vehicles would be needed totransport the racing cars of all the teams participating in the A1tour to Los Angeles Airport. The valuable freight will then flyfrom Los Angeles to Shanghai in two China Eastern aircraft. Atthe end of the season, Panalpina will ship the racing cars back toEurope..


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Basel landmark moves to KunmingSwitzerland/Belgium/China Daniel Oppliger worked for theNatural History Museum in Basel (Switzerland) for 30 years prepar-ing specimens. After taking voluntary early retirement so that hewould have time for other projects, he helped the Institute of Zool-ogy of the Chinese Academy of Sciences to set up a zoologicalmuseum in Kunming. This city (population approx. 4.5 million, alti-tude 1800 metres) is the capital of the province of Yunnan in thePeople’s Republic of China. The province has very diverse floraand fauna, making it an ideal location for the zoological museum.It was proposed that a well-known Basel landmark, one of the darkgreen fountains featuring Basel’s mythical emblem, the dragon-likebasilisk, should be erected in front of the new museum. Oppligerconceived this plan together with Daniel Meier, a member of theboard of the Friends of the Basel Natural History Museum, andsuggested it to the Basel city council. Without further ado, thecouncil decided to present the fountain as a gift. As the officialstatement of the Basel city council puts it: “The fountain is in theform of a dragon, which is a characteristic symbol of both Chinaand Basel.” It goes on to say: “The dragon represents the friendlyrelations between the people of Kunming and Basel, and also theharmonious cooperation between the Zoological Museum in Kun-

ming and the Natural History Museum in Basel.” The basilisk thusserves as a link between the two cities and the two museums, andwill in future act as a kind of ambassador for Basel in Kunming.The fountain had to be transported to China in time for the open-ing of the new museum. The initiators of the project contacted thelogistics company Panalpina, which has a number of branches inChina. As Panalpina's head office is in Basel, the company felt aspecial affinity with the basilisk fountain, so it decided to under-take the job for free as part of its commitment to sponsoringworthwhile activities. Under the supervision of Karl Tschui ofPanalpina Basel, the special cargo was shipped in cooperationwith Panalpina China. First, the fountain was packed at the Baselend in a crate measuring 220 cm x 120 cm x 138 cm, which endedup weighing 585 kilos. The crate was then loaded into a container.This was taken by rail from Basel to the Port of Antwerp (Belgium),where it was transferred to a Cosco Container Lines ship for thevoyage to Yantian (China). From there it travelled by train to Kun-ming, arriving in mid-January 2006. It was immediately handedover to the Zoological Museum.

Karl Tschui from Panalpina Basel supervises the loading of the fountain.


Within a short time we have had to mourn the deaths of two personalities whose work is closely linked to the fortunes ofPanalpina. They gave a large part of their lives to the service of the company and contributed significantly to the success ofPanalpina.

Otto Schmid, the former President of the Ernst Göhner Founda-tion, which was the sole shareholder for many years and is nowthe main shareholder, died shortly before his 75th birthday. He wason the Board of Directors of Panalpina for 23 years. Until his retire-ment for age-related reasons at the last Annual General Meeting,he acted as Vice-Chairman, a function that he carried out withgreat expertise and entrepreneurial vision.

Bernhard Handschin died at the age of 77 years while hiking inthe mountains. For over 33 years, up to his retirement in 1993, heheld various managerial positions in the Finance Department, oneof which was as Chief Controller of the Group Head Office. He wasalso Finance Director of Panalpina Nigeria for several years.

We miss them both and will always honour their memory.

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In memory of Otto Schmid and Bernhard Handschin

Publishing details: Editor, owner and publisher: Panalpina World Transport (Holding) Ltd, Viaduktstrasse 42, P.O.Box, CH-4002 Basel, Switzerland. Internet: www.panalpina.com. Tel. ++41 61 226 11 11.Responsible for contents: Martin Spohn, Corporate Communications. Editor: Martin Spohn, e-mail: [email protected], Michèle Thüring by büro:z GmbH, Bern/Basel. Distribution: MonikaDups, e-mail: [email protected]. Publication intervals/languages: “connect” is published several times a year in German, English, French, Spanish and Chinese in over 100 countries. Totalcirculation: 60 000 copies. Photos: cover: büro:z GmbH; p. 2: Getty Images; p. 3: Julian Salinas, Basel; p. 4–9: Getty Images; p. 7 top: Keystone; p. 10–13: Rolf Sulser;p. 14: Bühler; p. 15: büro:z GmbH; p. 16 and 17: Bühler and Getty Images; p. 18 and 19: Bühler; p. 20–23: Peter Maurer, Weisslingen Design and production: büro:z GmbH, Bern/Basel. Printed by:bdv, Basel. Printed on 100% chlorine-free bleached paper


HSE at PanalpinaGlobal and strategic responsibility is centrally controlled by Corporate HSE,

a staff unit reporting to the Chief Operating Officer. The Head of Corporate HSE is Lynsey MacIver from Scotland.

> Article on page 20


bdv connect 1 e - panalpina integration of its long-standing agent for the nordic market enables...

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