sdv newsletter #12
TRANSCRIPT
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Edition N° 12 / February, 2015SDVLIVE.com
CONTENTSSDV newS - P.3
SDV inSight - P.5Air Cargo grows in Africa
Cleaner Deliveries
Cambodia Challenges Made-in-China
Air & SeA trenDS - P.7
MArket FoCuS - P.8South Africa
EDITORIALAfrica within Reach
the dynamism of the African continent has been confirmed. The service industry and domestic demand are growing along with the infrastructure development and the production of raw materials. opportunities are arising in every sector, in every country. Logistics remains a major challenge to gain access to the various African markets, especially since conditions vary greatly from one country to another. the strength of our network in as many as 45 countries, together with our field expertise, is the key to our global capacity to deliver.our goal is to integrate Africa in our clients’ global supply chain. we design logistics solutions by taking into account not only their objectives but also local challenges. Africa is increasingly connected to international trade with new partners such as Brazil, China, india, or turkey. Present in all these countries, we offer global solutions with end-to-end management of flows to all African countries. On the African continent as well as in the rest of the world, we are committed to providing our clients with reliable, competitive and scalable solutions.
Thierry EhrenbogenSDV Ceo
Bolloré Logistics Vice-President Mr. Herbert de Saint Simon receives the 2014 Golden Award from
Mr. Yin Xuquan - Huawei Procurement & Qualification Deputy President
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SDV LaoS CompLeteS one of itS LargeSt tranSportation operationS in the Country
02.12.2014
Indochina Development Partners (IDP) is a firm originating from Cyprus, with main activities in agro projects in the indochina peninsula, and more particularly, Laos.
recently, SDV Laos was awarded the contract for organizing, following up and delivering industrial equipment from SDV’s client supplier location up to iDP’s rice mill factories located in the Champasak and Savannakhet provinces, in the Lao People’s Democratic republic.
the operations were rather challenging since it was a cross border job requiring different means of transportation, sea and land with the support of the network to implement a perfect door-to-door service. Land transportation of 116 40’ high-Cube Dry as well as two 20’ Flat Rack containers was complex since the roads were not in good conditions and bridges sometimes could not be used.
A multimodal transportation service proposition was adopted. routing was longer but had the advantage of using less mountainous and bad road conditions. Moreover, in using SDV’s routing, SDV Laos was able to use border points close to the delivery site which made customs clearance easier and allowed some flexibility from the local authorities which were well aware of this project.
SDV’s scope of work for unloading was to advise the client on process to follow, to establish the delivery plan and be perfectly on time for delivery as some specific lifting equipment and manpower were booked especially for unstuffing of the containers in order to guarantee smooth operations. During the unloading process, SDV coordinated with all parties concerned and made regular direct reporting “on-site” to iDP’s management to describe what was happening at the site and share precise information on the process status.
Thanks to a long experience in mining, hydropower and oil & gas projects, SDV Laos was able to manage these shipments and to perform smoothly, despite having met with some serious obstacles.
SDV NEWS
SDV Japan Attends the AFRIKA Meets KANSAI Event for the First Time in OsakaFrom left to right, Tatsuya Fujikawa (SDV Osaka Branch Manager), Serge Edongo (Africa Advisor for SDV Japan) and Adrien Ito (Africa Desk for SDV Japan)
SDV Korea, Offering a Warehouse Tour to Students of Singapore NYP University
SDV CreateS itS own SubSiDiary in Spain anD ContinueS itS DeVeLopment in europe
09.12.2014
After a partnership of more than 30 years, SDV creates its own subsidiary in a key country of Southern Europe: Spain, fifth economy of the European union, important gateway to Latin America and Africa.
this structure of 110 people headquartered in Valencia will incorporate the Bolloré group teams already present in Spain, including isamar, specializing in shipping.
An entity of 18 people dedicated to industrial projects, most of them previously with tiba Projects, will reinforce this structure.
this new subsidiary is in line with SDV’s ambitions to pursue its own development strategy in europe and to strengthen its footprint in Spain. the transfer of the tiba teams following SDV customers to the new SDV Spain organization will ensure a seamless transition and service continuity to SDV customers in Spain, as well as uninterrupted quality of services.
SDV inDia hanDLeS firSt airCraftCLearanCe for tata Sia airLineS LimiteD
24.12.2014
tata SiA Airlines Limited, a joint venture between tata Sons and Singapore Airlines launching its world class full service carrier in india, initiated a strategic alliance with SDV india’s aerospace team soon after this venture was established.
SDV started working with Vistara (the brand name of tata SiA Airlines Limited) as a business partner and advisor in December 2013 for the preliminary discussion on supply chain management and logistics challenges in india. with various rounds of brainstorming exercises and rigorous follow-up, SDV india was appointed by Vistara as an official customs broker and international forwarder for all their commercial supplies and aircraft spare parts.
From the beginning, SDV Aerospace’s goal was to provide added-value to this partnership. During the initial days of this relationship, SDV not only faced challenges but also created solutions for their duty free imports / customs clearance services & warehouse support, which in turn resulted in successful operations, confirming Vistara’s choice to choose SDV as their official customs broker and freight forwarder.
More recently, SDV india was assigned to perform the customs clearance of the first aircraft (A-320) for Vistara. Also, the Vistara team appreciated the support provided by SDV india to make this operation successful. Manish Batra (regional Manager Aerospace S.A.) with the second in command Anshul Anand (Aerospace operation Manager india) are leading the SDV india team.
SDV LaunCheS eXpanD by SDV to Support the internationaL DeVeLopment of SmaLL anD meDium-SizeD frenCh enterpriSeS
22.01.2015
Focused on the smooth and safe transport and logistics operations, eXPAnD by SDV revolves around three distinct services including: credit insurance, cargo insurance and customs diagnosis.
Credit insurance SDV associated itself with euler hermes, a world’s leading credit insurance company, in order to offer a credit insurance service specially conceived for exporting SMEs, letting them secure their commercial transactions everywhere in the world and allowing them to be covered against the risk of non-payment as well as delegating the collection of their export trade receivables.
Cargo insurancethe cargo insurance service gives them the possibility to have access to a competitive multimodal cargo insurance solution integrating an all-risk coverage for expeditions that have been entrusted to SDV. The EXPAND by SDV formula permits them to insure their expeditions in a systematic and permanent way, without any worries regarding the implementation of each new client file.
Customs diagnosis with eXPAnD by SDV - Customs diagnosis, SDV offers SMes daily on-site, targeted customs diagnosis based on seven points of control (incoterms, nature of cargo, value, class, etc.). then, a concrete action plan is put together in a customized report focused on three domains: organizational, regulatory and commercial.
with eXPAnD by SDV, SMes will be supported by competencies and efficient means to secure and accelerate their international trade.
“Our wish is to bring a fully adapted support to the expectations of our SME clients, flexible and easy-to-implement, allowing them to optimize their profitability and their cash flow. The SMEs’ international development should not be slowed down by risks which, when anticipated, can be controlled.” highlights Pascal Le guével, SDV Sales Director for France.
aLSo in the newS
On SDVLIVE.com
25.11.2014SDV China Completes Credit Evaluation Project
02.12.2014SDV Belgium Successfully Good Distribution Practices (GDP)Certified
22.12.2014SDV Korea Successfully Completes the Qualified Envirotainer Provider Accreditation
e-CommerCe LogiStiCS SoLutionS: after iVory CoaSt anD SenegaL, boLLoré afriCa LogiStiCS anD CDiSCount are opening a webSite in Cameroon
14.01.2015
the new cdiscount.com website will enable customers to access more than 50,000 references and then choose their means of payment: mobile phone or cash at the collection point or on home delivery.
Cdiscount, the e-commerce leader in France, has set up the local subsidiary, created the website and is running the commercial side of the venture. Bolloré Africa Logistics is taking care of import logistics to Africa, customs clearance procedures and nationwide logistics services. home deliveries will be handled by SDV Express specialized in urgent door-to-door deliveries on the African continent.
As in ivory Coast and Senegal, the new Cameroon subsidiary, owned jointly by Cdiscount and Bolloré Africa Logistics, will draw on each partner’s specific expertise: Cdiscount for e-commerce and Bolloré Africa Logistics for logistics and transport.
Follow us
SDV Houston Air Charter for Anadarko
06.02.2015SDV Successfully Manages the Shipment of a Next Generation Helicopter Mock-Up to Zhuhai Airshow
other artiCLeS
SDV INSIGHT
On SDVLIVE.com
SDV Laos completes one of its largest transportation operations in the country for Indochina Development Partners (IDP). A contract for organizing, following up and delivering industrial equipment to food factories. Implementation of a cross-border
job requiring different means of transportation, sea and land, to transport 116 40’ High-Cube Dry as well as two 20’Flat Rack containers.
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air Cargo growS in afriCa
09.02.2015
The rise in trade is boosting air freight but challenges remain.
over the past decade, Africa has enjoyed an annual average economic growth rate of 5%, making it one of the fastest-growing markets in the world.
the number of middle class households in African countries could reach 128 million by 2020, up from 85 million in 2008, according to a report by consultants Mckinsey.
As people buy more goods and move around more, air traffic is rising. In the year ending november 2014, African airlines enjoyed a 10.5% growth in demand measured in freight tonne kilometers, according to the international Air transport Association (iAtA), which is twice the growth of the global air freight market at 4.2%.
“we are seeing strong demand for air freight from importers and exporters,” says Hugues Marchessaux, airfreight director at Bolloré Africa Logistics in Paris, France. Companies are opting for air instead of sea transport for urgent shipments such as supplies and parts
for the oil industry or pharmaceuticals such as vaccines, as well as for high-value goods.
Air transport is perfectly suited to sending goods to landlocked African countries such as niger and Burkina Faso where road transport can be lengthy with a high risk of delay, especially at borders, Marchessaux adds. For instance, it takes around 24 hours to transport goods between Johannesburg in South Africa and katanga in the Democratic republic of the Congo by plane compared to six days by express truck service and 15 days by traditional truck service.
Other challenges include finding an airport able to accommodate some of the larger cargo planes especially in Sub-Saharan Africa. the availability of cargo planes and the reliability of air transport also vary from one country to another, making it essential to have sound local knowledge. SDV also has to take into account the ease of loading and unloading when selecting an airport because some airports lack adequate handling equipment. in addition, political problems such as wars or health scares such as the ebola virus will inevitably affect transport.
Aviation has the potential to make an important contribution to Africa’s continued economic growth because it can help open markets and facilitate trade. “we are using our knowledge to create new air transport routes into Africa and that is good for both the African continent and our customers”.
The Logistics of Classic Cars01.12.2014
The Asian Beauty Business 01.12.2014
The Power of Tracking 07.11.2014
On the Ground in Timor-Leste 02.12.2014
Opportunities in Colombia 27.03.2014
Aberdeen Goes Global 09.04.14
Links into Laos06.05.2014
U.S. Companies Consolidate 21.07.2014
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CLeaner DeLiVerieS26.02.2015
How a hybrid truck can help improve air quality in the city.
At a time when the world is looking to reduce global emissions of carbon dioxide and improve air quality, SDV Singapore is pioneering a new hybrid truck for deliveries that will contribute to cleaner air in the city.
“increasingly, our clients want to reduce their global environmental footprints and SDV is developing innovative ways to reduce the Co₂ emissions of both our activities and theirs”, says thibault Lecuyer, environment development coordinator at SDV in Singapore
the hybrid truck, the Mitsubishi Canter eco hybrid euro 5 light duty truck, will come into service in March. It is the first time SDV will use a hybrid truck in Singapore although it has been operating one in germany since early 2013.
the hybrid technology combines a small diesel engine with an electric motor. it is designed to reduce fuel consumption and Co₂ emissions by as much as 23% while also reducing emissions of harmful particle matters and nitrogen oxides by up to 30%, according to Mitsubishi. In addition, this delivery service uses reusable plastic boxes, thus reducing the use of cardboard boxes.
The truck will initially serve a luxury goods manufacturer, delivering to shops in Singapore’s Marina Bay and orchard road, the city’s iconic shopping district.
SDV’s initiative is in line with Singapore’s government aiming at ensuring that its transport system lowers its environmental footprint while increasing fuel efficiency. At present, industry and motor vehicles are two of the biggest sources of pollution in Singapore. A recent initiative, the Sustainable Singapore Blueprint 2015, for example, outlines targets to reduce emissions of air pollutants by 2020.
In 2012, for example, the group invested in its first green hub in Singapore. This 42,000 square meters green warehouse and the hybrid truck are just one part of SDV’s focus on environmentally-friendly logistics. SDV’s SAVe ProgrAM, for instance, offers clients the ability to measure the carbon footprints of their supply chains. it offers ways to reduce emissions across all steps of the supply chain while increasing performance and supports sustainable development initiatives through voluntary carbon offsetting projects.
the hybrid truck tackles a specific segment of the emissions problem - the air quality in cities. “we are trying to reduce the environmental impact of the final part of the delivery in cities and in areas where pollution and noise are mostly present”, says Lecuyer.
CamboDia ChaLLengeS maDe-in-China
06.10.2014
Attractive conditions for clothes and shoe buyers in this Southeast Asian nation.
A low-cost workforce, favorable export tariffs and political stability are helping transform Cambodia into one of China’s main rivals as the supplier of textiles and footwear. In 2013, this country exported textiles worth US$4.97 billion, more than double the US$2.19 recorded in 2005, according to the Garment Manufacturers Association in Cambodia (gMAC).
“Many manufacturers are relocating their production to Cambodia or sending semi-finished goods there to take advantage of tax-free imports of raw materials and duty-free exports of the goods”, says Simon Lassailly, managing director of SDV Cambodia.
These tax benefits are due to the ‘Everything But Arms’ program, a european initiative under which all imports from Cambodia to the European Union except armaments are duty free.
The high growth in exports is creating logistical challenges, however, as the infrastructure is not yet in place for high volumes. No cargo freighters fly from Phnom Penh International Airport, for example, and space is limited on passenger planes. “we are therefore forced to look for alternative solutions.”
One solution is ‘buyers consolidation’ where the European importer consolidates orders from different suppliers into one full container shipped directly to the final destination.
other alternatives include multimodal transport combining road and air or sea and air. In the first option, goods are taken by truck to Bangkok airport, which has more capacity and departures, to be then transported by air to europe or the u.S. the sea-air option works on the same principle but the cargo is shipped on a three-day sea journey from Cambodia to Singapore and then sent to europe by air.
these multimodal options offer importers operational and financial advantages. They help solve the capacity issues and shorten transport times as well as being more cost effective than pure air freight. the goods also reach the shelves faster than ocean cargo alone.
Lassailly is looking forward to the creation of the Association of Southeast Asian nations (ASeAn) Economic Community, expected in 2015, to further help developing the Cambodian textiles and footwear trade.
SDV Unveils LINK, a New Web and Mobile Tracking Solution
David Smith, Managing Director of SDV Northern Europe receives the trophy for the “Global Freight Solutions Provider of the year 2014” at the Global Freight Awards 2014 ceremony
Our LINK offer is split up in 3 evolutionary levels:
- CONTACT: universal tracking, follow-up of main steps involved in shipment- ADVANCE: real-time visibility, performance analyses regarding total flows- Tower of control, INTEGRAL allows clients to manage and control their supply chain as a whole
Find us on LINK at: https://link.sdv.com
Strong SignS for air anD Sea Cargo
Low oil prices bring promise of growth.
25.02.2015
this year has started positively for the air and sea freight markets although uncertainty remains.
“it looks like a promising year for europe because of the low euro, low interest rates and low oil prices”, says georges Van hove, manager of airfreight corporate procurement at Bolloré Logistics in Paris, France. “those factors could all stimulate growth in the eurozone which would boost trade.”
Globally, Van Hove expects modest growth in the global air-car-go trade of between 4% and 5%, quite similar to last year which landed at 4.3%
however, uncertainties remain since some airlines such as Middle eastern carriers Qatar Airways and emirates Airlines have changed their pricing structure, scrapping fuel and security surcharges and adopting all-in rates.
“we are seeing the end of fuel surcharges because the price of jet fuel is so low”, says Van Hove. He expects other cargo carriers such as germany’s Lufthansa and Air France to potentially adopt the same strategy.
to be sure, the fuel surcharge has been the subject of much debate in recent months as oil prices more than halved last year.
AIR & SEA TRENDS7
Van hove hopes that more of the market will adopt all-inclusive rates. “We don’t want a situation in six months where different airlines adopt different pricing structures”, he says. “that could lead to uncertainty, which is bad for trade.”
in the shipping freight market, low fuel prices will also be positive for the results of the shipping companies but so far they have not passed those savings onto their customers.
“we don’t see lower oil prices having an impact on rates yet”, says Denis Sanguinetti, sea freight procurement manager for Bolloré Logistics in Paris. “this is especially true on some of the biggest trades such as Asia to europe where the shipping companies are trying to recoup some of their losses.”
Last year, freight rates fell on most routes. however, the biggest companies such as Denmark’s Maersk, CMA CgM of France or Switzerland’s Mediterranean Shipping Company were less affected. “these groups have the biggest ships that are the most fuel-efficient and that can benefit from economies of scale”, Sanguinetti continues.
the same factors such as the weak euro, the falling oil price and stronger demand could help sustain growth in the sea freight market in 2015 of between 4% and 5%, Sanguinetti says. that’s about the same as last year.
the weaker euro against the dollar could have another effect. it could boost exports from Europe to Asia, reversing the trend of the past decade and more.
“This could be the start of a rebalancing of trade flows between the eastern and the western worlds.”
KEY CONTACTS
Stéphane Armand Director PacificTel: +61 (2) 8336 3906 [email protected]
Cédric ChupinSales Director Australia & New ZealandTel: +61 (2) 8336 3992 [email protected]
21.02.12
Australia has transformed itself into an internationally competitive, advanced market economy thanks to abundant and diverse natural resources which attract high levels of foreign investment and include extensive reserves of coal, iron ore, copper, gold, natural gas, ura-nium, and renewable energy sources.
Besides being the world’s largest net exporter of coal accounting for 29% of global coal exports, the country is also a significant exporter of food and has a large services sector. the Australian economy grew by 1.8% during 2011.
Originally created in 1975 as a representative office, SDV (Australia) PtY LtD was established as a full ope-rating Australian company in 1992. In 2009, SDV is affir-ming its ambitions on the continent with the acquisition of Euro-pacific Forwarding Pty Ltd. 215 employees are located in 5 offices and 7 logistics centers and develop end-toend solutions in activity sectors such as Aeros-pace, industrial Projects, oil & gas, healthcare, Fra-grances & Flavors and Perfumes & Cosmetics.
SDV in Australia has recently opened an office in Darwin with a 2,000 sqm warehouse and 10,500 sqm of yard, to support JkC JV with the “iChthYS Lng project” but also all its customers in the oil & gas and industrial Project industries. it caters to the needs of operations and projects on-shore and off-shore in the “north-west shelf” as well as being an advanced supply base for east timor.
SDV in Australia has developed a first class 24/7 cus-toms service enabling pre-clearance of all import ship-ments as well as a consulting audit approach to explore duty concessions, special regimes, ePBS… for its cus-tomers.
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Broad-Based Black Economic Empowerment
Verification Certificate SDV SOUTH AFRICA (PTY) LTD (Refer to Annexure A for the business units/subsidiaries included in the verification) Certificate No: GEN-BBEE/SDV2014/01 Registration no: 1997/021527/07 VAT no: 4860173204 Head Office, Location: 19 Covora Street, Jet Park, Boksburg, 1459 P O Box: PO Box 1018, Isando, 1600 Applicable Criteria: Forwarding and Clearing Sector Charter Scorecard applied: Generic Scorecard (>R35 million annual turnover)
Element Weighting Score Ownership 20 0.00 Management Control 10 2.15 Employment Equity 10 6.66 Skills Development 20 20.00 Preferential Procurement 20 17.97 Enterprise Development 15 15.00 Socio-Economic Development 5 5.00 Overall Score 100 66.78
Broad Based BEE status level : Level 4 Contributor to BBBEE BEE procurement recognition level : 100.00 % BEE recognition level : 100.00% Black Ownership : 0.00 % Black Women Ownership : 0.00 % Value Adding Supplier (Yes/No) : No Based on our work performed, we have no reason to believe that the B-BBEE status reflected in this Certificate has not been determined in all material respects, in accordance with the B-BBEE Codes of Good Practice on Black Economic Empowerment, gazetted on 9 February 2007 in terms of the Broad-Based Black Economic Empowerment Act of South Africa. Our independent limited assurance is available for inspection at the registered office of the certificate holders together with the accompanying detailed B-BBEE Scorecard and should be referred to for an understanding of our limited assurance engagement and the extent of work performed. This report was issued on the date of issuing the certificate. This Certificate has been determined on the basis of information provided by management of the certificate holder(s). We do not accept or assume responsibility to anyone other than the certificate holders for our work, for this report, or for the conclusion we have reached. _____________________________________ _ Andre Rautenbach Date of issue: 20 March 2014 IRBA Registration No: 815160 Expiry date: 19 March 2015 B-BBEE Approved Registered Auditor Period of validlty: 12 months ! !
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MARKET FOCUSSouth Africa is the second largest economy in Africa and the 34th-largest in the world. South Africa is ranked as an upper-middle income economy by the world Bank and is considered to be a newly industrialized country. the republic of South Africa has been identified as a middle power in international affairs and maintains significant regional influence.
SDV South Africa (SA) was established in 1994 in Johannesburg. The year 2008 was marked by significant acquisitions including the integration of whitehorse, SAeL and its branches in Cape town, Durban and Port elizabeth. in 2013, SDV SA acquires SoCoPAo, the ships’ agents for Safmarine MPV. in 2014, the two local entities merge to form SDV South Africa (SA).
SDV South Africa is a part of Africa’s leading logistics network, Bolloré Africa Logistics, a leader in transport and logistics services on the African continent. they design and implement end-to-end logistics solutions for clients. their supply chain focused approach allows them to link all logistics activities to the most remote places on the African continent. SDV South Africa is also a gateway into all of Africa facilitating freight forwarding, customs clearance, warehousing and distribution activities for many multi-national companies. it offers these services across industries including mining, oil & gas, industrial & infrastructure developments, automotive, healthcare, telecommunications and consumer goods.
Some of their success stories include the regional control tower for a telecommunications client, a dedicated fleet running cargo to and from a leading copper producer in the Democratic republic of Congo (DrC) and a cross docking facility in Durban for a global consumer goods company. It also created new services such as the Pemba Express, an airfreight charter service into Mozambique for the oil & gas industry, and more recently, the Katanga Express, an airfreight service for the mining sector in Southern DrC.
Moreover, SDV SA is ISO 9001 certified and a level 4 Broad Based Black employment equity (BBBee) company. SDV SA is also a proud member of the South African Freight Forwarders Association (SAAFF) as well as an iAtA accredited company.
Key ContaCtS
1 - SDV South Africa is officially ceritified ISO 9001:2008 since July 2013 and was recognized as a “Broad-Based Black Economic Empowerment” (BBBEE) since May 2014.2 - SDV South Africa exhibited at the Intermodal Africa Exhibition 2014 at the Durban International Convention Centre. 3 - Three complete and painted car bodies were loaded on flat rack containers on October 2014 in the port of Durban.4 - SDV South Africa assisted with the X-haul of containers as well as the storage of shipmentin their project facility inside the Port of Richards’ bay. The cargoes included Rolls Royce gas enginesand generators from ABB. 5 - SDV South Africa’s office in Pomona, Johannesburg.6 - SDV South Africa’s branch office in Port Elizabeth.
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by SDV South afriCa
Cobus Fourie Commercial DirectorTel: +27 11 396 0326 [email protected]
Ken McDonaldManaging Director Tel: +27 11 398 [email protected]