The Panalpina magazine 2_2003

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Long-standingpartnershipbetween Ericssonand Panalpina

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Market leader in Asia-PacificRegional CEO Asia-Pacific, Lars-Ola Gunnarsson, on develop-ments in the Asian economies and in Panalpina’s Asia-Pacificbusiness

Accelerate growthThe new Regional CEO for North America, David I. Beatson, talks abouthis goals and management philosophy

Page 6 Logistics

Page 11 Interview

At home on all seven seasNippon Yusen Kaisha (NYK) is one of Panalpina’s key seafreight partners

Page 12 Partners

Partnership links Far East with EuropeSupply logistics for the German IT company Wortmann AG

Page 14 High-tech

A contribution to better sightPanalpina is helping to finance a Swiss Red Cross project to combatpoverty-related blindness in Ghana

Page 16 Sponsorship

A plane full of mastsPanalpina transports oversize components for the national stadium inAbuja (Nigeria)

Page 18 Projects

Hand in handLogistics solutions for the automotive industry

Page 20 Automotive

Life-long learningKnowledge and experience sharing thanks to the Panacademy virtual learning platform

Page 24 Human Resources

Page 31 Publishing details

Page 26 Worldwide

Know-how and trustSwedish telecoms companyEricsson’s cooperation withPanalpina in China

Page 4 Interview

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Ladies and Gentlemen

The high-tech industry is one of Panalpina’s four key industry groups, com-prising not only manufacturers of computing, electronics, integrated circuitsand telecommunication equipment, but also their huge first-tier supplierbase.Panalpina has been a prominent service supplier to this sector for some time,and our customer list is graced by a growing number of Global Fortune 500companies.The high-tech industry is continuing to shift production capacity into thecoastal regions of China, benefiting from an almost limitless labor pool and agrowing top-notch infrastructure. China is being converted into the world’sprime manufacturing location at breathtaking speed, aided by the legendarysavvy and hardworking attitude of its people. With over USD 50 billionobtained through direct investments in 2002 alone, China has secured thenumber one position in that league and seems unlikely to be toppled formany years to come.This issue’s cover story throws the spotlight on Ericsson’s impressive pres-ence in China. Ericsson has been an established player in China for over acentury now, investing in building up its production and marketing capaci-ties at times when other players were reluctant to do so. Ericsson’s conviction and stamina have paid off, and today they are one ofthe major suppliers of telecommunications equipment to the buoyant Chinesecommunications industry. Their experience mirrors the development andstrategy of the Panalpina network in China. With the combination of ourdetailed industry focus and professional key account management, we havecreated a mutually beneficial partnership.The Pacific Rim is key to the world’s leading high-tech companies, not onlyfor manufacturing and sourcing, but also for tapping the growing ranks ofaffluent consumer markets.Panalpina is already strong and well positioned in the Asia-Pacific region, andour excellent platform will enable us to grow together with our customers.

Bruno SidlerPresident of the Executive Board

Partner of the high-tech industry

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Market leader in Asia-PacificPanalpina implemented a new Group management structure regionali-zing its organization in 2002. The Regional CEO of Asia-Pacific, Lars-OlaGunnarsson, looks back on the regionalization and forward to the deve-lopment of his region.

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Interview

“Asia-Pacific is a region with tremendous opportunities in a complex business environment. Our goal is to take full advantageof these opportunities.”

Mr Gunnarsson, can you describeyour experiences during the last 18 months after the regionalizationwas implemented? For me personally, it has indeed been an excit-ing experience to move from an establishedand rather predictable way of life in Scandi-navia to a region with an amazing energy anddrive. Asia is a region full of complexity anddiversity; the sheer size of the populationcombined with the range of countries at dif-ferent stages in their economic development,has created a market place with remarkablegrowth potential. It is a region with tremen-dous opportunities in a complex businessenvironment. Our challenge is to take fulladvantage of these opportunities by introduc-ing our standardized business processes andproducts across entire regions while payingthe necessary respect to the local customerand market needs.

In our region we have built a multi-cul-tural organization with strong functionalskills and capabilities which can provide thebest possible guidance and support to ourbusiness units. The initial focus has been tocreate a team spirit and to jointly establishthe direction and goals for our region in theyears to come.

Operational excellence and cost effective-ness were key targets in our business planprocess. In order to meet these targets, werealized the need for creating critical masswithin certain business units as the base for establishing management teams with specific functional responsibilities and weconsequently created several “Areas” in AsiaPacific, including South Asia, South EastAsia, Oceania, and China/Taiwan.

We also identified the need to strengthenour customer focus as well as marketing andsales activities in Asia, where Panalpina hasnot been perceived as a very aggressive player so far, and this is obviously an imagewe want to change.

During the past 18 months, we havestrengthened our network, customer base,range of products and services and seengood business growth; furthermore, we areconvinced that we have the vision andstrategy in place to establish Panalpina as a leading provider of forwarding and logisticsservices in Asia-Pacific.

What is unique in dealing with cus-tomers in the high-tech industry? In which countries does Panalpinamainly work for high-tech customers?

Most of our business units in Asia serve high-tech customers, whether global brand namecustomers, contract manufacturers or ven-dors. The main activities are in China, Taiwanand South East Asia.

The high-tech industry has suffered since1999/2000 and the industry is now character-ized by an uncompromising drive for achiev-ing cost leadership as well as a changed focusfrom supply chain to demand chain, i.e. mar-ket-driven rather than product-driven produc-tion. Asia is the main production and assem-bly base for the industry and the requirementsare somewhat different in Asia than in therest of the world. We get involved in providingservices on the supply side into assembly orproduction as well as on the finished productside to the final consumers. In close coopera-tion with clients, partners and in-house carri-ers we constantly monitor and improve ourservices for the high-tech industry.

Apart from the core industries, whichother customers does Panalpina servein Asia Pacific?Apart from the core high-tech, automotiveand healthcare industries, we have tradition-ally been among the market leaders in provid-ing freight and logistics services for the retailand fashion industry. Japan and Hong Kongcontinue to be the main markets for luxuryand fashion products, and brand name com-panies have continued to expand with ownretail shops especially within China.

In addition, retail goods are Asia’s singlelargest export industry with China, SouthAsia and South East Asia as the main pro-duction centers. In view of all these marketadvantages, we will strive to develop moreprecise and tailor-made import and exportproducts to further boost our market shares.

The oil & gas industry in Asia is growingwith great potential while our involvement inthis trend in Asia is still low profile. Thus, wehave established a dedicated infrastructure tocapture the huge business opportunities inthis segment and bring our industry expertiseto Asia.

Panalpina is reorganizing its structureby creating “areas” and “businessunits” rather than operating in “countries” and “branches”. What are the advantages of this structure forcustomers in your region?We have developed a matrix organizationalstructure by grouping the agents and smallbusiness units into area organizations. This

structure will enable us to strengthen our net-work in Asia Pacific by using local synergiesand establishing "critical mass". Thus thelocal structures will "mirror" the businessfunctions at regional level, tighten customerfocus, and enhance operational excellence,competitiveness, cost awareness and ongo-ing growth.

Any comment as far as your outlookand strategic topics are concerned?The Asia Pacific region remains the brightestspot on the world economic map despite theglobal recession and the SARS crisis. We willcontinue to grow with our customers byfocusing on activities within our core indus-tries in order to provide market-driven indus-try-specific services and solutions. We need tofurther grow our network in Asia organicallyand through acquisitions. We will continue tofocus on achieving operational excellencecombined with a strong focus on marketingand sales. Development and training of ourstaff will be an important role in our strategy;we strongly believe that the spirit, attitudeand skills of our staff will prove to be our mostimportant key to success.

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Curriculum VitaeNameLars-Ola GunnarssonCivil statusMarried, three childrenYear of birth1948NationalitySwedish1969–1989Various managing positions at Ericsson Telecom AB, Stockholm(Sweden)1989–1993Sales & Marketing Manager, Goinge-frakt (Net Logistics), Osby (Sweden)1993–1997Multinational Accounts Manager,Panalpina Scandinavia, Stockholm(Sweden)1997–2001Managing Director, Panalpina Scandinavia, Stockholm (Sweden)2002Regional CEO Asia-Pacific, HongKong and member of the PanalpinaExecutive Board

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Know-howand trustThe Swedish company Ericsson is the world’s leading supplier of totaltelecommunications solutions and one of Panalpina’s most importantcustomers in the high-tech industry. Panalpina and Ericsson worktogether all around the world – notably in China, one of the key marketsfor both companies. >

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Some 40% of Ericsson’s business in theAsia-Pacific region and approximately 10%of its total global business comes fromChina, where the company has been operat-ing for over 100 years. “And we are stillgrowing,” explains Anders Karlborg, Head ofthe Asia Pacific Supply Center in Nanjingnear Shanghai since last year. “China is oneof the fastest growing markets in the worldand will remain so in the foreseeable futureas well.” In 2000 the sales figure was someRMB 15 billion (USD 1.8 billion), hence dailysales averaging over RMB 40 million (USD4.8 m). Together, Ericsson’s primary suppli-ers invested a total of RMB 15 billion (USD1.8 billion) in China, not only creating a largenumber of jobs in the country but also sig-nificantly expanding its export volume.

Ericsson, whose global workforce num-bers some 57,000 in 140 countries, has along and successful history in China. Found-ed in Sweden in 1876, the company wasalready active in China by 1892, and as earlyas 1894 it delivered 2,000 telephones toShanghai. Its first representative office wasopened in Beijing some 20 years ago, and in1994 Ericsson (China) Company Ltd. wasfounded. With 3,600 employees, 26 localoffices and 10 joint venture companies, Eric-sson is now China’s leading supplier oftelecommunications solutions and services.

“Ericsson’s big success in this hotlycontested market is based firstly on its com-mitment and delivery performance to its

customers. This includes providing innova-tive, integrated systems to all network oper-ators to enable their current networks’migration into future requirements like sin-gle broadband and multi-service networks.This also necessitate considerable invest-ment in research and development pro-grams,” says Anders Karlborg.

In China Ericsson does not just sell itsproducts and services but is also activelyinvolved in the technological developmentof the country by developing skills and com-petences – both of customers and of its ownworkforce in China. In 1997, it founded theEricsson China Academy in Beijing and in1999 a research and development center in

collaboration with the China Academy ofTelecommunications Technology ”With theBeijing Institute of Technology we alsoopened a technology research center formobile telecommunications,” says Anders

Karlborg, proving the support China hasreceived from the company in the area oftechnological development. “In 1999, Erics-son also established the industry’s first openlaboratory for mobile multi-media communi-cation in China,” he adds.

Long-standing partnership with PanalpinaPanalpina has had a presence in China since1976 and today it has over 20 offices there.The organization offers the full range of serv-

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Logistics

Lars-Olaf Björklund, Manager Distributionand Logistics Development for Asia atEricsson.

Anders Karlborg, Head of the Asia-PacificSupply Center Ericsson.

ices and has extensive know-how in com-plex logistics tasks. It is no coincidence,therefore, that Ericsson trusts in Panalpina’sservices in China. “We’ve been workingtogether for many years, and Panalpina hasprovided us both with traditional freight for-warding and with logistics services,”explains Lars-Olof Björklund, Manager Dis-tribution and Logistics Development for theAsia Region. “It’s a demanding partnershipthat is based on a lot of mutual trust,” headds. Anders Karlborg endorses that view.“Trust is important because we depend onPanalpina to a certain extent. We plan tostrengthen our ties still further in the futureand to integrate Panalpina more closely intoour supply chain,” he says. On the otherhand he points out that, like its other suppli-ers, Panalpina does not enjoy any specialstatus but has to keep proving itself.

The service portfolio that Panalpinaoffers its customer Ericsson in China iswide-ranging. Thus, Panalpina analyzes thesupply chain and draws up optimization pro-posals; it uses EDI tools to provide visibilityof the supply chain; it handles the return andreplacement management, consolidates andclears products through customs, suppliesEricsson factories and radio base stationproject sites and organizes the provisioningof the necessary products at the suppliers.“On top of that we have two ‘implants’ work-ing in the Ericsson plant in Nanjing nearShanghai. They are Panalpina employees

who work exclusively for Ericsson and areresponsible for the entire operational side ofthe functions served by Panalpina,” explainsIvo Roex, Key Account Manager for Ericssonin Shanghai.

The partnership with Ericsson, he says,is an ongoing process of development. “Aclose relationship like the one we cultivatewith Ericsson doesn’t spring up overnight tosuddenly find it functioning smoothly,” heexplains. “New requirements and improve-ments are constantly emerging, we arealways taking on new tasks. If somethinghasn’t been handled in accordance with thecustomer’s wishes, we sit down and look forsolutions. Of course it’s important here tohave a very open relationship based onmutual trust. Even a globe-spanning net-work, innovative products, local expertise

and industrial competence won’t be enoughif the mutual trust is missing.” Lars-OlofBjörklund is happy with the servicePanalpina provides and its innovations, buthe knows that there is still plenty ofenhancements to develop. “We’re a longway off having exhausted all the possibili-ties.”

Generally, he feels that the outsourcingtrend will persist for some time to come. Ofcourse, however far this trend is taken, nocompany is likely to hand over completecontrol of its supply chain to outsiders. Nev-ertheless, he believes companies will out-source more and more of their non-coreactivities, while retaining the quality controlcompetencies in-house as well as a compe-tent demand function.

Ericsson too sets great store by quality.“We measure service level, delivery preci-sion, transit times, condition of goods ondelivery and much more besides.”

Industrial competenciesThe high-tech industry has been experienc-ing an unparalleled boom for some years andis therefore also changing very rapidly. Thesame is true of the growth market China.Therefore companies are partnering withlogistics companies like Panalpina, whichnot only provide global coverage but alsohave excellent industry-specific and localmarket knowledge. Lars-Olof Björklund con-firms this and stresses, “In the logistics

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Stephen Yeung, President Panalpina China.

Logistics

sector, we cooperate with companies thatare organized on similar lines to ourselvesand have a geographic coverage that is sim-ilar to ours. We are a global operation withstrong local organizations that know the rel-evant market and are also familiar with thestrategic objectives of the group. We expectour suppliers to be organized in a similarway.”

This, he says, is a precondition to under-standing the specific requirements of cus-tomers, keeping up with their high tempoand being able to offer them genuine addedvalue. A logistics company must actextremely proactively, not only receivinginstructions but also taking on tasks thatpreviously were carried out in-house by thecustomer. “Here we expect a partner toaccede to our individual ideas and presentinnovative solutions,” says Lars-Olof Björk-lund. “Of course there are also forwarders

around today that concentrate exclusivelyon transport, and I appreciate that they arein perfect control of their business. But weneed a logistics service provider who opti-mizes our supply chain, offers transparencyand provides measurable services – a com-pany that has a firm grip on costs andreduces interfaces to a minimum.”

Ann Tang, Branch Manager Panalpina Shanghai.

Ivo Roex, Ericsson Key Account Manager atPanalpina Shanghai.

High-tech competence centerPanalpina offers its customers inno-vative, tailor-made logistics solutions.Instead of offering general conceptsfor sale on the market, Panalpinapursues a controlled approach anddevelops tailored, complex solutionsfor its core customer groups indefined industry segments. Theglobalized structure of the economyrequires extensive knowledge ofone’s customer’s business combinedwith high flexibility, which is whyPanalpina concentrates on projects inwhich it can contribute its core com-petencies and offer the customergenuine added value. Its successbuilds on its industry expertise, itsglobal air and ocean freight network,the “asset free” principle and a con-sistent partnership managementbased on the best-in-class principle. Panalpina designs logistics conceptsprimarily for customers in the auto-motive, high-tech and pharmaceuti-cals/healthcare industries. In allthese sectors the company has manyyears of experience and extensiveknow-how. Logistics specialistsdevelop tailor-made solutions and aresupported by a comprehensive keyaccount management system as wellas by Virtual Industry CompetenceCenters. These are virtual groupscomposed of key account managersplus staff from operations and sales. They communicate regularly via con-ference calls and workshops, developjoint solutions, bundle and expandtheir industry expertise and makethis available to the organization. The Virtual Competence Center High-Tech (VCCH) is headed by FerwinWieringa, Global Key Account Manager Seagate.

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What attracted you specifically tothe job of a Regional CEO for NorthAmerica?Panalpina has an excellent reputation as amajor global forwarder, customs broker andlogistics provider. In fact, Panalpina is one ofthe best names in the industry. It’s great tohave the opportunity to build on such abrand name and leverage it into an expand-ed market position in North America. How-ever, while Panalpina in North America ishighly respected in segments such as proj-ect shipments, oil &gas, high-tech and auto-motive, it is not as well known in other indus-try segments. Therefore, for me it’s an exci-ting challenge to build on this brand nameand expand it into new vertical markets.

Panalpina has been growing mainlyorganically in the last years. Will youpursue this policy in North America?Our objective is to grow both organically andthrough acquisitions. First of all I am con-vinced that organic growth is absolutelyessential for our success. Companies whicharen’t growing organically have a problem –it means that competitors are probably tak-ing their market share. But obviously thisgrowth strategy can be complementedthrough acquisitions at Panalpina, especial-ly in a market like the US and Canada.Acquiring companies which fit our strategywill enable us to expand into new vertical orgeographic markets and help us expand andstrengthen our North American network.

Organic growth coupled with rigorousexpense control is essential. But, of course,one can’t shrink to success. In order to growbottom-line profit, one must have top-linegrowth through new business. That meansthat we will increase our sales and market-ing activities in order to sell more services tocurrent customers and to develop new verti-cal markets. The second pillar will be growththrough acquisitions as explained. Thirdly

we will put a lot of emphasis on the develop-ment of the transpacific tradelane which isthe biggest growth opportunity for NorthAmerica. Furthermore we want to developand introduce a full range of North Americandomestic products including time-definiteair freight services and an expanded rangeof value-added logistics services.

Can you explain this in more detail?It will certainly be important to further devel-op customer-oriented domestic airfreightproducts in North America. This is both anoffensive and defensive strategy. Offensive,because these services will generate prof-itable sources of new business. And defen-sive, because we need a full range of servic-es in order to prevent competitors with fullservice offerings from penetrating into ourcore international business.

What will be your top priorities?First of all I want to meet all of our employ-ees because I fully believe in a team envi-ronment. At the same time, I want to meetand talk to as many customers as possible.As I speak to our employees and customersI will be conducting a brief SWOT analysis tohelp me determine where we are doing welland where there is room for improvement.Another priority will be to review our finan-cial performance and set some realisticguidelines for the North American organiza-tion. Furthermore we will roll out a plan toenable us to accelerate growth, improve per-formance and increase profitability.

What are Panalpina’s strengths?Panalpina has numerous strengths as alreadymentioned. Important factors are definitelyour experienced employees, our extensiveglobal network and presence, an excellentreputation, a very well managed and prof-itable organization as well as a strong cus-tomer base.

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Accelerate growthPanalpina has split its Americas Region into two separate Regions forNorth and Latin America. David I. Beatson joined Panalpina in July asRegional CEO for North America. The following interview highlights hismanagement philosophy and goals.

Interview

David I. BeatsonDavid I. Beatson (54) is an Americancitizen who holds a Bachelor of Sci-ence degree in Business Administra-tion from Ohio State University andan MBA in Finance and Marketingfrom the University of Cincinnati. He has worked in the transport andforwarding industry throughout his28-year career. After several years asVice President Cargo Sales and Mar-keting at American Airlines, he spentseven years at Emery Worldwide, thelast four as President and CEO, fol-lowed by two years as Chairman andCEO of Circle International. He leftthe company after the merger withEGL to establish his own consultingfirm.

What do you like specifically aboutyour job?I am driven by working in a team environ-ment to generate profitable growth for ourcompany. My managing philosophy is team-work, good communication and an opendoor policy. Work smart, work hard – andhave fun!

Panalpina, along with its subsidiaries andcentral capacity management agencies,ASB Sea and ASB Air, meticulously selectsits partner carriers in the airfreight andseafreight sectors according to the best-in-class principle. The carrier Nippon YusenKaisha (NYK), a member of the JapaneseMitsubishi group, is one of Panalpina’s old-est and closest business partners in theseafreight sector. The original associationover a decade ago, then confined to routesbetween Asia and Canada, has since bur-geoned into a cooperation spanning all theworld’s oceans and trade routes. What is thesecret of this success? “Efficient collabora-tion at all levels – both at management leveland on the front line – is certainly one crucialfactor,” ASB Sea Managing Director ThomasEisenblaetter explains. “A good rapport

between executives is little use if there arehitches on the operational side – and viceversa.”

“On top of that, NYK delivers quality”,Eisenblaetter continues. “Apart from obvi-ous things such as shipping network andpunctuality, the company sets high stan-dards in areas such as information flow, documentation, invoicing, container andcapacity management, even during thepeak season.” In Eisenblaetter’s opinion,these are key elements in forging a suc-cessful partnership. “In offering customersfirst-rate, time-definite products, Panalpinaultimately depends on business partners ofNYK’s caliber”, he adds. “NYK’s excellentfreight space management system enablesPanalpina to plan accurately and effi-ciently.”

Reliability…By the same token, Panalpina’s reliability isparticularly appreciated at NYK. Panalpinasupplies NYK with precise details of itsshort- and medium-term capacity require-ments, which the seafreight carrier confi-dently factors into its planning. This degreeof dependability directly benefits both part-ners, as Minoru Sato, Chairman of NYKEurope, underlines: “NYK’s recent history ofglobal expansion in the container liner sec-tor has undoubtedly been influenced by theclose partnership with Panalpina. At NYK,we are proud to have received the backingof a company of Panalpina’s standing duringthe expansion of our global container busi-ness, and we look forward to the many yearsof collaboration that lie ahead.” Minoru Satois convinced that the international container

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At home on all seven seasNippon Yusen Kaisha (NYK) is one of Panalpina’s foremost partners inthe seafreight sector. Having enjoyed many years of close collaboration,the logistics company and the Japanese seafreight carrier are nowseeking to further strengthen their ties.

Partners

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sector is poised for further substantialgrowth and that, working in tandem,Panalpina and NYK will reap enormous divi-dends in the future.

…and unwavering trust“We know that our colleagues at NYK willstand by their word”, declares ThomasEisenblaetter. He is particularly pleasedabout this since, in his opinion, unbureau-cratic handshake deals are losing currencyin today’s business world. “Of course, suchagreements are founded on a sound basis oftrust, such as that which exists betweenNYK and Panalpina”, he hastens to add.Minoru Sato likewise highlights this aspect:“Our partnership is based on mutual respectand trust.” As Bernhard A. Liebisch, SeniorSales Executive at NYK Line in Rotterdam,points out, the quality of the relationshipallows a timely and frank discussion ofpotential difficulties so as to nip any prob-lems in the bud. “Personal contacts remaincrucial,” he stresses. “Even if the notion of a‘people’s business’ may sound a little tritethese days, it is a particularly fitting descrip-tion of the container sector.”

Bernhard Liebisch values NYK’s com-mitment to the very highest standards.“Panalpina is, after all, answerable to its cus-tomers for its choice of partners! Indeed,Panalpina and NYK occasionally conductjoint negotiations with customers, especial-ly in the projects sector.” As Liebisch sees it,a working relationship of this quality is anabsolute prerequisite for securing a top-class product for customers.

Cosmopolitan, yet traditionalFounded in Japan in 1885, Nippon YusenKaisha (The Japan Mail Steamship Compa-ny) ranks among the pioneers of modern-day

maritime shipping. With the launch of itsliner service to Bombay (now Mumbai) in1893, NYK was the first Japanese seafreightcarrier to operate a long-distance link of thiskind. 1968 saw the company become thefirst Japanese carrier to introduce a full con-tainer ship, the Hakone Maru, which ranbetween Japan and the US west coast. NYKagain set new standards in 1970 as one ofthe co-founders of the legendary Trio Con-sortium that operated routes between theFar East and Europe. Today, it is one of thefive members of the world’s largest contain-er-sector consortium, the globally operatingGrand Alliance. The company operatesaround 100 liners, of which over 70 are con-tainer ships. Overall, the NYK fleet embracessome 770 vessels, including luxury cruisers,pure-car carriers (PCC), bulk carriers, reefersand tankers. NYK also has a logistics divi-sion that offers overland shipments plus theassociated intermodal logistics services.While NYK remains deeply rooted in Japan-ese business traditions and takes its socialobligations very seriously, it is at the sametime a cosmopolitan, customer-orientedcompany that has significantly raised itsinternational presence in recent years.

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Christening of NYK ArtemisThe close ties between Panalpinaand NYK were strikingly illustrated atthe christening ceremony for the con-tainer ship NYK Artemis in Hiroshima.Godmother Marianne Sidler, wife ofPanalpina CEO Bruno Sidler, dis-patched the ultra-modern ship downthe slipway on the first of manyjourneys across the world’s oceans.Boasting a GRT of 75,484 metric tonsand a capacity of 6,492 TEU, the ves-sel will run between Asia and Europe.The freighter is some 299.95 meterslong, 40 meters wide and 60.8 metershigh from keel to mast top and is fit-ted with over 533 refrigerated con-tainer connections. Its service speedis 25 knots.

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The high-tech, automotive, healthcare andoil & gas industries are Panalpina’s corebusinesses. For these key industries, the for-warding group provides integrated logisticsservices at the global level. Among the high-tech customers is the German IT companyWortmann AG. Just over two years ago,Panalpina took over this company’s supplylogistics and has since been organizing air

and sea freight shipments for Wortmannbetween Asia and Germany.

A smoothly functioning teamMost of Wortmann’s IT products andcomputer components (monitors, note-books, motherboards, etc.) are produced inTaiwan and China. A team assembled fromPanalpina staff in Taiwan, China and Ger-

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Partnership links Far East with EuropePanalpina has forged a close partnership with the German IT companyWortmann AG in the field of supply logistics. The cooperation ensuresefficient, on-time delivery to German PC dealers of goods originatingfrom Far Eastern suppliers.

High-tech

... and on the oceansGoods that are sent by sea – either in con-solidated shipments or as full containerloads – are dispatched (depending on themanufacturing site) from Yantian, Fuzhou,Shanghai (China) or Keelung (Taiwan),reaching the North Sea port of Hamburg viathe Suez Canal. Panalpina Bremen, theGroup unit responsible for business withWortmann, arranges customs clearance bymeans of the ATLAS program on-site inHamburg. The goods are then deliveredstraight to the customer.

Like ASB-Air does for airfreight, ASB-Sea purchases and manages the necessaryseafreight capacity. The volumes shippeddepend on the season, reflecting Wort-mann’s orders. Up to four departures a weekare offered from each of the departure ports.The tight schedules call for great flexibilityall round: a special sales drive, for example,can involve shipping fifty 40-foot containersfull of computer goods from Asia to Ger-many.

Panalpina is the vital link between theFar Eastern manufacturers and Wortmann’send-user customers in Germany. The flow ofgoods is accompanied by a steady flow of

information, ensuring that Wortmann is ableto plan its activities ahead – and that the PCdealers have the necessary goods on theirshelves the moment they are needed.

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many, as well as from the in-house carriersASB-Air and ASB-Sea, see to it that thegoods are shipped to Germany within the(often very tight) schedule demanded by thecustomers. All the parties involved – thesuppliers and dispatch points in the FarEast, the customs offices, airports, truckersand Panalpina representatives – worktogether with Wortmann as a close-knitteam to ensure that the consignments arehandled efficiently, quickly and withoutsnags.

in the air...Wortmann decides whether the goods are togo by air or sea. Airfreight is flown from Tai-wan or China via Luxembourg to Münster/Osnabrück, where it is cleared by customsand delivered to Wortmann the same day.

ASB-Air buys in and manages airfreightcapacity on behalf of the Panalpina Group.Both in Taiwan and China, this Panalpinasubsidiary has developed a dense timetableof flights (daily departures), ensuring thatsufficient capacity is available even at peaktimes. In 2002 Panalpina handled 502 air-freight shipments for Wortmann totalingsome 340 tonnes.

Wortmann AGWith about 5500 resellers, 240 in-house staff and 2002 sales totalingapproximately EUR 225 million,Wortmann AG is one of Europe’slargest independent IT companies.Still relatively young, its first 16 yearshave been a continuous successstory. Wortmann AG is a quality- and service-driven manufacturer ofnotebooks, PC systems and servers(equipment is sold under the Terrabrand) and a distributor of peripher-als and components. The productsare sold through medium-sized spe-cialist dealers and systems suppliersas well as to public authorities andschools.

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venting poverty-related blindness withoutthe help of the SRC and donors likePanalpina.” Ron Bannerman, the SRC officialresponsible for Ghana, details the allocationof roles: “Together with the health authori-ties we concentrate on establishing andexpanding eye hospitals, training doctors,nurses, opticians and Red Cross volunteersand setting up optician centers – whilePanalpina’s financial commitment meansthat we don’t have to worry about where themoney will come from.” Panalpina’s support– Panalpina is concentrating its sponsorshipactivities on this project – thus enables theSRC to concentrate on the program itself,collaborating with the health authorities todrive it forward. In the final analysis, every-body wins – but above all Ghana’s visuallyimpaired, its many sufferers from poverty-related blindness.

Panalpina has been active in West Africa formany years, and we thus have strong linkswith the region. At the beginning of thisyear these flourishing local ties led us to sup-port a project launched by the Swiss RedCross (SRC) as part of the international“right-to-sight” program. The SRC, which isthe largest Swiss aid agency, has beenactive since 1990 in preventing and treatingpoverty-related blindness, which affects184,000 people in Ghana. Its activities focuson two regions in particular.

Social responsibilityCHF 1 million will be spent on the projectbetween 2003 and 2005, after which theSRC’s Ghanaian partners will take over fullresponsibility for it. Panalpina is contribut-ing CHF 550,000 to the program. “Theimportant thing is to provide concrete aid forsufferers where they need it,” explainsPanalpina’s CEO Bruno Sidler, adding:

“Every company has a social responsibility.We are discharging ours by supporting thisSRC project.”

Dr. Maria Hagan, the eye specialist whoheads the Ghana health authority’s nationaleye program, gives the following reasonswhy poverty-related blindness is so preva-lent: “More than 80 percent are blindbecause they suffer from cataracts causedby the widespread trachoma infection thatis associated with poor hygiene, or fromsight loss due to vitamin A deficiency.” Andshe instantly says how these causes arecountered: “Cataracts are treated by a sim-ple operation, while we take preventivemeasures to combat trachoma and vitaminA deficiency, which affects children in par-ticular.”

Prevention, treatment, vision correctionAs part of the international “right-to-sight”project, the Red Cross – in conjunction withthe health authorities – is focusing on threeareas: prevention, treatment, and the manu-facture and distribution of corrective aids.The objective is to halve the incidence ofpoverty-related blindness to 0.5 percent ofthe population by 2010.

Over 30,000 people have already beentreated in 2003, 1,658 of them undergoingoperations for cataracts. The first half-yearwas also used to renovate four eye clinicsand to train both Red Cross volunteers andopticians.

Win-win situationHagan is happy with activities to date. Shepoints out that every partner contributes:“We cannot achieve our objective of pre-

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Sponsorship

A contribution to better sightOver the next three years, Panalpina will be helping the partially sighted in West Africa by contributing 550,000 Swiss francs to a SwissRed Cross project to combat blindness in Ghana.

Panalpina CEO Bruno Sidler and DanielBiedermann, Director of the Swiss Red Cross,signing the sponsorship agreement.

Poverty-related blindnessThere are over 40 million blind peoplein the world, and the number isincreasing every five seconds. Mostof the blind live in the countries ofthe South. 80 percent of them wentblind unnecessarily – as a result, thatis, of diseases which can be cured orprevented by simple means. Thispoverty-related blindness has gravesocial and economic consequences.For further information, visitwww.redcross.ch

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Projects

A plane full of mastsPanalpina Nigeria and our in-house carrier ASB-Air have set new standardsin an assignment for construction company Bilfinger Berger AG: masts 22.4 meters long and 1.25 meters in diameter have been shipped by an MK Airlines cargo Jumbo for the first time. The masts were needed for thevelodrome at the ultra-modern sports stadium in Abuja, Nigeria.

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costly. As a result, construction work pro-ceeded seamlessly and was completed onschedule.

Major construction projects like the nationalstadium in Abuja, Nigeria, are a challenge toall concerned. Individual components comefrom many different countries or even conti-nents, they tend to be heavy and unwieldy,and they have to be delivered to the site justin time – i.e. exactly when they are needed.No easy undertaking, especially since thissort of major project always involves count-less partners.

“The transportation partner in projectslike this must have the complex proces-ses and the various interfaces involved completely at its fingertips, otherwise there are bound to be construction hold-ups”, explains Wolfgang Essig, Panalpina’sSenior Vice President Nigeria Coordinationand the company’s chief account manageron this project. “Flexibility and short, fast-track decision-making processes areabsolutely central to this sort of transporta-tion venture”, adds Johannes Lichti ofPanalpina’s in-house carrier ASB-Air inLuxembourg.

Velodrome supportsPanalpina Nigeria and ASB-Air did a bril-liant job, handling many different types ofconsignment for Julius Berger Nigeria plc, asubsidiary of the German group BilfingerBerger AG that built the Abuja National Sta-dium. One of them meant flying three enor-

mous masts for the velodrome, weighing atotal of 54 tonnes, from Luxembourg toAbuja. These had been transported to Lux-embourg from various European countries,largely by the suppliers themselves. Theproject as a whole was managed from Basel(Switzerland) and Luxembourg, in closecoordination with the client in Wiesbaden(Germany).

Lifted into the hold by high- and low-loadersThe 50-meter masts, divided into three sec-tions for shipment, were delivered on low-loaders. Two mobile cranes transferred themasts from the low-loaders to two high-load-ers, lifting devices that placed them directlyin the hold of the Boeing 747-200F throughthe forward freight hatch. The process tookaround four hours. The sections were so long(up to 22.4 meters) and thick (1.25 meters indiameter) that they occupied almost thewhole of the plane’s payload area.

On arrival in Abuja the process wasreversed. After unloading, which tookaround three hours, the special cargo washauled to the construction site.

The Boeing was chartered by ASB-Airfrom MK Airlines, a Panalpina partner ofmany years’ standing. The time factor hadprompted the client to choose air rather thansea freight, which would have been less

Abuja National StadiumThe National Stadium in Abuja,Nigeria, was opened in April thisyear. An architectural gem, it hasalready been given an apt nickname:“the Theatre of Dreams”. Covering32,000 m2 and accommodating 60,000 seats, this ultra-moderntemple of sport caters for countlessdifferent activities. The stadium and velodrome were built for the All-African Games, which will be held in autumn 2003.

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In the wake of a volatile global economy,OEMs, Tier I and Tier II suppliers in the auto-motive industry have been experiencingpressures to cut costs, increase velocity ofproduction, and generally do more with less.That has caused pressures to be felt up anddown the entire manufacturing supply chainand controlling that flow of parts and fin-ished products has become increasinglycomplicated. Companies are learning theycan’t do it alone.

The automotive industry is an environ-ment where trust must be earned. In thisenvironment, Panalpina’s Virtual Compe-

tence Center - Automotive (VCCA) has beenexperiencing great success in building part-nerships and setting new standards for serv-ice. VCCA is headed by Michael Wills,Panalpina’s Vice President and GlobalLeader of the VCCA. Since it was formallylaunched less than a year ago, Panalpina’sVCCA has been successful in highlightingPanalpina’s automotive excellence to theindustry.

“Ours is a virtual center because weinclude automotive logistics experts on sixcontinents who come together regularly tofocus on specific needs of our shippers andcontinually look for ways to improve the levelof service to manufacturers, suppliers, andvendors in the global automotive industry,”said Wills. “The VCCA insures that automo-tive parts and finished products movethrough the entire chain to and from any ori-gin or destination on six continents.”

Collaboration as major success-factor The VCCA partnership efforts work becauseit forces Panalpina to listen to its customersas it strengthens collaboration. In theprocess, it enables Panalpina to significantlyreduce purchasing errors as well as trans-portation costs, and management gains avaluable tool to take customer service, finan-cial and operations performance to new lev-els. “Collaboration is how we manage infor-mation and information is the primary toolfor good logistics management,” says Wills.

Collaboration also was the meansthrough which Panalpina identified theneed for more flexible, expanded air charterservice linking the active parts manufactur-ing centers in Brazil with the rest of theautomotive world through Panalpina’s hub

in Luxembourg. The expanded service adds65 tons of loading capacity on a fully char-tered DC 10-30 aircraft that leaves Sao Pauloevery Wednesday. The new service comple-ments an on-going Boeing 747-F- charterthat connects Sao Paulo with South Africa.

An exchange of experiences is keyAnother example of collaboration isPanalpina’s sponsorship of industry-specificsymposiums that bring together shippers,carriers, and service providers in a cross-organizational forum to discuss mutual chal-lenges, dependencies, efficiencies and op-portunities. “Listening is the key ingredientfor the success of these symposiums just aslistening is an integral tool to foster ourgrowing partnerships,” remarks Wills. “VCCAworks because it enables everyone inPanalpina to listen to our customers.”

At its most recent symposium in Tra-verse City/MI, the VCCA discussed its con-tinuous effort to adapt to the marketplacewith tailor-made solutions, through a clearstrategy followed by solid execution.Panalpina’s core competency challengesshippers to push technology and logisticsinnovations to find new ways to managelogistics. “When we create internal andexternal awareness of our capabilities andgoals and then create the tools and trainingto reach those goals, we are much moreeffective in developing new business andcurrent cross-selling opportunities,” saysWills.

That is one of the reasons whyPanalpina’s logistic center in Detroit hasbeen a major success. The newly operational62000 sq ft facility is close to the airport, andusing state-of-the art inventory man-

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Automotive

Hand in handPanalpina’s focus on the logistics needs of its automotive customers hasdefined new standards for service and partnership.

By Arnold Davis

Michael Wills, Head of the Panalpina “VirtualCompetence Center – Automotive”.

>

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Automotive

agement, is able to expedite productsthrough customs for fast delivery to allregional auto production facilities. “If a sparepart is missing or just delayed by only anhour, it could shut down an entire produc-tion line,” explains Wills.

Automotive symposium in MichiganEffective order management was a key topicfor symposium speaker Wes Johnson, Direc-tor of Customs Service, Logistics and Plan-ning at Robert Bosch Co. He emphasizedthat cost pressure is as intense as it has everbeen. “Suppliers are looking under everyrock to reduce pricing because they have nochoice,” said Johnson. He agreed that visi-bility and collaboration built on trust are thetools for doing business effectively, and headvised that in order management, visibilitycan be maximized when the logistics serv-ice provider, Panalpina, is brought into themanagement and planning process early.

Partnership and trust“Partnership with Panalpina works becauseof mutual trust,” commented a Panalpinashipper at the symposium. “Trust is neces-sary before shippers and their serviceproviders can collaborate to look at problemswith a mutual perspective.”

According to Wills, trust is the basicrequirement at the highest level of everylogistics partnership. At that level, onlyreached by about five percent of logisticsrelationships, the relationship is an exclu-sive partner base where both shipper andservice provider have mutual dependencyand shared goals. VCCA and its client rela-tionships reach this level through closeinteraction and trust.

“Collaboration built on mutual goals andtrust empowers automotive companies andtheir suppliers to control their entire logis-tics process. When we work toward a com-mon interest, we can provide complete visi-bility and pinpoint opportunities as well ascompetitive hurdles.”

The success of Panalpina’s VCCAproves that supply chain management candetermine the success or failure of a product

or even an entire company and has rede-fined the relationship between shipper andlogistics supplier. Competitive prices arestill a factor in ocean and air freight forward-ing, but the focus has changed to considerthe total delivery cost, i.e., all the variouscost elements along the value chain. TheVCCA uses state-of-the-art measurement totrack and measure factors such as reliability,flexibility, and responsiveness.

This level of service means minimizingthe number of ad hoc relationships andinterfaces while building a solid partnershipbetween the shipper and the logistics serv-ices provider. “Obviously we are on the righttrack,” says Wills. “Every company has dif-ferent logistics requirements, and divisionswithin companies have different logisticsrequirements, but we have proven that ourrelationships work when we are open toexplore new ways of managing the logisticsprocess.”

Arnold Davis is a freelance journalist wholives in the US.

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Customers and representatives of Panalpina at the Automotive Symposium in Traverse City,Michigan.

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With the business world continuing toundergo rapid change, increasingly highdemands are placed on the workforce interms of flexibility, adaptability and the com-mitment to acquiring new skills. By thesame token, motivated employees with ini-tiative encounter a wealth of opportunitiesfor personal and professional growth.

At Panalpina, a high priority is attachedto long-term corporate development, ofwhich advanced training is a cornerstone.To ensure that performance and quality are steadily enhanced and dovetailed to the rapidly shifting client requirements inthis fast-moving age, the company laun-ched a virtual training platform under thename Panacademy in 2000. The advancedtraining program enables participants tosharpen their skills and improve perform-ance by fully addressing the demands of themarket.

Growing with the companyPanacademy is by no means a centralisticprogram for the privileged few. As an intrin-sic part of the company, it is open to allGroup staff and, as such, fully in line withthe corporate culture, which guarantees allemployees equal opportunities for personalgrowth. Yet Panacademy is not there to“spoon-feed” its pupils: it demands initiativeon the part of the individual. Those activelyinterested in their personal and professionaldevelopment will find an intriguing range ofadvanced training courses that also mirrorcorporate needs.

Charu Arora Dua’s career is a case inpoint. Now Marketing Manager at PanalpinaIndia, she took on a summer job at the com-pany four years ago and progressively devel-oped her skills through training. Today, sheis responsible for strategic planning in theSouth Asian region. “The Panacademy

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Human Resources

Life-long learningTo keep up with the increasing pace of business, having a sharp mind is just as vital as being quick on your toes. Some three years ago, Panalpina launched a virtual training platform under the name Panacademy to provide its staff with a framework for continuingprofessional development and help maintain today’s high standards of customer service in the future.

Panacademy graduates: Charu Arora Dua, Lesley Hume, Thomas Mittermair.

Heinz ZengaffinenHead of Training & Development.

courses taught me about various facets oflogistics and management and enabled meto perform my duties more efficiently,”explains Charu Arora Dua, who holds a Mas-ter’s in Business Administration with a spe-cial focus on international business/market-ing. “Panacademy offers all Panalpinaemployees the chance to learn new thingsand grow within the company – an arrange-ment from which both individual and com-pany profit.”

Client focusThe Panalpina Group’s Training and Devel-opment Officer, Heinz Zengaffinen, under-scores the benefits for the company:“Panacademy, like all Panalpina’s undertak-ings, is totally geared to the needs of itsclients. Our training program is a function ofour business targets. The strategy we pur-sue has two objectives: to satisfy employees’needs for growth and to meet the demandwithin the company for highly skilled spe-cialists. Together, these two planks lay thefoundation for a first-rate customer service.”

That these two objectives go hand inhand was demonstrated by Thomas Mitter-mair, Seafreight Import Manager atPanalpina Linz (Austria). He successfullycompleted a two-year part-time course inexport/international management at theJohannes Kepler University in Linz. “Apartfrom the assimilation of theoretical knowl-edge, particular importance was attached toclient focus. I now more fully appreciate cus-tomers’ needs and can better cater forthese.” This shows how greater skills andexpertise directly benefit the client as wellas Panalpina.

Wide-ranging course programAnd how is training structured atPanalpina? “The program embraces coursesat local, regional and global level,” Zen-gaffinen explains. “The locally organizedprogram – which embraces induction cours-es for new staff, specialist training, lan-guage, computer, safety and sales courses,the Moving Forward scheme and lots more –promotes the smooth running of day-to-daybusiness. The activities at regional level aredesigned to encourage growth within a spe-cific geographical area. Specialists andmanagers from the relevant countries areappointed to standardize procedures oroversee change processes and discussregional business issues. At the global level,the program features the traditional courses

at Cranfield University in the UK. Theseinclude three key account managementcourses (The Winning Pieces, The WinningStrategy and The Winning Quality) plusNavigating Our Future (a course designedfor the senior executives of tomorrow) andthe Leveraging Supply Chain Managementcourse.

Swapping know-how and experienceLesley Hume, Business Development andCustomer Service Manager at PanalpinaToronto (Canada), has attended the Leverag-ing Supply Chain Management course atCranfield University. Apart from the subjectmatter covered, she particularly appreciatedthe close contact with Panalpina colleaguesfrom around the world. “At last I could putfaces to the names,” Lesley Hume enthused.“In fact, for me, the opportunity to learn fromother people’s experience made the biggestimpact on my routine work. By poolingknow-how from different national and orga-nizational units, we are effectively creatingadded value for our clients.” This was anindirect tribute to one of Panalpina’s keyassets: team spirit. For the top-class servic-es provided by Panalpina to its clients wouldbe inconceivable without effective interac-tion across whole countries and continents.

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Worldwide

Flashing downthe ice trackGermany/Canada Bobsleighers race down the ice track atspeeds of up to 150 kilometers an hour. A few thousandths of asecond can make the difference between winning and losing. It all hinges on the bobsleigh itself – a sophisticated high-techmachine: the best equipment is essential to success. So it followsthat transporting these precious sleighs is by no means a simpleundertaking. Panalpina has been handling bobsleigh transporta-tion for the top teams for around three years.After the European Championships in Winterberg (Germany) lastwinter, Panalpina transported 22 men’s two- and four-man bob-sleighs to Calgary (Canada), the next World Cup venue, for severaldifferent nations: two belonged to Monaco, two to Russia, four toLatvia, three to the Czech Republic, seven to Germany and four tothe USA. All the teams except Monaco brought their sleighs intheir transport containers to Panalpina Frankfurt themselves. Thisunusual cargo, which was organized by ASB-Air, weighed a totalof around 15 tonnes.On January 29, 2003 the precious consignment set off via Luxem-bourg for Calgary, where it was handed over to Adventix, theagent for AIT World Wide Logistics. By February 3, 2003 the bob-sleighers were already able to resume training, flashing down the ice track on their sleds. On February 8–9, 2003 they did it forreal, at the World Cup event in Calgary’s Olympia Park. Panalpinathen returned some of the sleighs to Winterberg and St. Moritz,Switzerland, via Frankfurt.

Taking the pulse of the auto industry

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Abdul Rahim M. Abdulla andRobert Timmermann from Panalpina Gulf LLC.

Dubai hubUnited Arab Emirates Panalpina is strengthening its position inthe Arab Emirates. In early 2003 Panalpina Gulf LLC opened itsheadquarters at the Logistics Center at Dubai airport. HH SheikhAhmed bin Saeed Al Maktoum, Head of the Department of CivilAviation of the United Arab Emirates and Chairman of Emirates Air-lines, spoke to the guests assembled at the dedication ceremonies.The new building includes modern office facilities and a 1450 m2

warehouse located right next to the tarmac. Because of its idealgeographic location, the new headquarters in Dubai will be usedas a hub for airfreight shipments to the Middle East, Central Asiaand Africa.

The safety netUSA In May 2003 Panalpina became a member of C-TPAT, the US "Customs-Trade Partnership Against Terrorism" program.Launched by the US government together with logistics serviceproviders, the goal of C-TPAT is to protect world trade from acts ofterrorism. In order to join the program, companies must haveimplemented a safety and security plan that complies with UScustoms guidelines. Panalpina is certified in a number of cate-gories: Licensed Broker, Air Freight Consolidator, Ocean Trans-portation Intermediary and Non-Vessel Operating Common Carrier(NVOCC). As a C-TPAT member, Panalpina benefits from acceler-ated processing of its shipments at the US border.

Switzerland The first-ever AutoLogisticsEurope Conference – the European counter-part of the AutoLogistics Global Conferencein the USA – took place this spring in Mont-reux, Switzerland. Panalpina, one of themain sponsors of the conference, was alsoan exhibitor, and Panalpina’s Thomas Blank,Senior Vice President, took part in thepanel discussion. Representatives from theautomobile industry as well as otherproviders of logistics services were also onthe panel. The conference was a usefulforum for car manufacturers, suppliers andlogistics service providers to discuss theirvision of the European automotive market.

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Worldwide

Man vs. natureAlaska/Canada/Arctic Panalpina organized six charter flightsfrom Alaska to the Russian Arctic for the Canadian mining compa-ny Bema Gold Corp. All the parties involved in the flights workedtogether perfectly to make sure the entire shipping process ransmoothly – even though the cargo, the destination and the Arctictemperatures were anything but normal.At the Panalpina end, the Charter department of the Group’s in-house carrier ASB-Air in Luxembourg, the ASB-Air representa-tives in Anchorage, Alaska, and the Panalpina offices in Torontoand Vancouver, Canada were all involved in the 7-day project. An Ilyushin 76 operated by two different Russian airlines was usedto fly in the 180 tonnes of cargo.The rather unusual cargo – a base camp for Bema Gold employees,as well as drilling and testing equipment – originated in Canadaand the USA. The individual cargo components were transportedseparately to Anchorage, where they were consolidated andloaded onto the aircraft in 20-foot containers. The flight went fromAnchorage to the Russian city of Bilibino, which is located in theChukotka region of Siberia.The biggest challenge came from rising temperatures in the Arcticregion. The cargo had to be delivered within a very short time, asthe ice runway in Keperveyem (Bilibino) had just about reachedthe point where no more cargo planes could land due to the fluctu-ating temperatures. Anchorage International Airport proved to bean ideal starting point for flights to Siberia because of its locationin the geographic center of the Northern Hemisphere.

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Focus on the oil & gas business

The team at the Offshore West Africa Conference: Andreas Nowak, Panalpina SouthAfrica; Georg Geiger, Safcor Panalpina; Nelly McCright, Panalpina Houston; Anne-Marie Sickeler, Panalpina Angola; Albert Bismuth, Panalpina Gabon (l-r).

Namibia Early this year the 7th OffshoreWest Africa Conference and Exhibition washeld in Windhoek, Namibia, where oil andgas producers and their partners met todiscuss developments in the industry.Panalpina has been active in West Africafor years and regularly participates in thisconference. This year, Panalpina companiesfrom Gabon, Angola and Nigeria, as well asASB-Oil & Gas, Basel and Safcor Panalpina,Panalpina South Africa and Houston,represented Panalpina’s activities in the oil& gas industry, thus helping to furtherstrengthen their customer ties.

ProfessionalworkHong Kong/Canada/Australia In June, ASB-Panprojects Chinaand Panalpina Vancouver (Canada) arranged the hangar-to-hangarshipment of four helicopters. The Sikorsky S-76 helicopters hadbeen sold by Hong Kong Flying service to Lloyds Helicopters inSingapore. Three helicopters were sent by ro/ro vessel to Calgary(via Vancouver), whereas one helicopter was shipped to Melbourne(Australia). All helicopters were trans-shipped in Yokohama(Japan), and all operations in Japan were supervised by personnelof ASB-Panprojects Tokyo.The business was acquired through Panalpina Vancouver whichenjoys an excellent reputation among helicopter operators world-wide. Lloyds Helicopters followed a recommendation and wasespecially convinced of the technical expertise provided byPanalpina in the transport proposal. Having been present duringthe collection on especially extended low loaders and the loadingoperation onto a RoRo vessel the owner and Managing DirectorMr. Chris Lloyd commented after successful operation: "Eventhough Panalpina’s proposal was not exactly cheap, the methodstatement contained therein convinced me that we are in goodhands. After having witnessed the loading operation set-up byASB-Panprojects in Hong Kong I am very impressed by theprofessional service and will consider Panalpina also for futureshipments.”

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Worldwide

The silver bulletGermany/USA Mercedes’ exclusive CLK-GTR roadster features a 6.9 liter V12 engine generating 631 BHP. The car has a top speedof 320 km/h. Only 20 of these luxurious silver two-seaters werebuilt, and one of these was recently shipped by Panalpina fromLuxembourg to Los Angeles.The dealer in Germany personally delivered the costly “silver bul-

let” by truck to the airport in Luxembourg. It took about an hour toget the roadster ready for the flight: First it was unloaded from thetruck, then the body and sensitive vehicle parts were protected sothat the exclusive vehicle could be tied down onto an air cargopallet and transported safely. A Cargolux plane then flew the car tothe United States.This unique airfreight assignment was acquired by PanalpinaHanover, which also handled all the special arrangements relatingto this attention-grabbing automotive transport job.

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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: martin.spohn@panalpina.com, büro:z GmbH, Bern. Distribution: Monika Dups, E-mail:monika.dups@panalpina.com. Publication intervals/languages: «connect» is published several times a year in German, English, French, Spanish and Chinese in over 100 countries. Total circulation:60 000 copies. Photos: Front, p. 6–10, p. 14, p. 25, p. 27 (C-TPAT, Montreux), p. 32 (ship): Peter Maurer, Weisslingen; p. 3/4,: Julian Salinas, Basel; p. 12/13: NYK; p. 15: Wortmann; p. 16: Werner Getz-mann, Reinach; p. 17: SRC; p. 20/23: Grand Traverse Resort and Spa, Traverse City/MI; p. 21 bottom: Cargolux; p. 21 top/p. 22: Joe Wilssens Photography Inc., New Baltimore/MI; p. 31 top: GF-X. Designand production: büro:z GmbH, Bern. Printed by: bdv, Basel. Printed on 100% chlorine-free bleached paper.

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Precision workSwitzerland/Germany/Italy/South Africa Panalpina wascommissioned by the electrical engineering company ABBSchweiz AG to ship an oversize consignment from Italy, Switzer-land and Germany by sea to Richards Bay on the east coast ofSouth Africa. The freight comprised five 61-tonne and five 82-tonne transformers, 770 x 352 x 456 cm rectifier cabins weighing12.5 tonnes each and some 40 shipper-owned containers.Under the expert management of Karl Tschui from Panalpina Basel(Switzerland), the components were taken to the Hillside Plant jobsite near Richards Bay, where an aluminum manufacturing plant isbeing extended.The goods were shipped between January and May 2003 in threepart consignments dispatched by ABB Legnano (Italy), ABBSchweiz and ABB Deutschland. The first of these was routed viaGenoa, while the Swiss and German goods passed through Antwerp.Precarriage to the port of Antwerp was mainly by inland naviga-

tion along the Rhine. Having arrived in Belgium, the freight washanded over to seafreight carrier MACS, which directly serves the port at Richards Bay. The initial leg of the journey from ABB Legnano, on the other hand, demanded precision work and projectknow-how due to the many tunnels to be negotiated betweenMilan and Genoa. Indeed, the entire route was painstakinglychecked in advance given that there would be only centimeters tospare in some cases. The components were finally transportedusing special low-loaders.The formalities at the Italian port were handled by PanalpinaGenoa prior to handover of the consignment to the Italianseafreight carrier Messina Line, which operates a regular roll-onroll-off service to South Africa. The freight was loaded onto Mafitrailers for rolling over the ramp of the ro-ro freighter. On approach-ing its destination, the vessel put in specially at Richards Bay toallow unloading of the ABB cargo.Safcor Panalpina’s projects department, headed by Barry Cull,supervised the handling of the components upon their arrival inSouth Africa plus oncarriage from Richards Bay to the HillsidePlant job site.

Efficiency andtransparencyUK/Germany GF-X (Global Freight Exchange) is a neutral Inter-net technology-based marketplace for the airfreight industry thatPanalpina was instrumental in developing. Airlines notify theiravailable aircraft capacity on this virtual platform while the for-warding and logistics companies that participate in it eitherannounce their needs on the network or go straight ahead andmake a booking.This summer, the GF-X Advisory Council commended PanalpinaLondon and Panalpina Frankfurt for their outstanding work inconnection with the roll-out of the e-commerce platform. This isnot only an acknowledgement of the Panalpina Group’s key role in actively developing the GF-X electronic marketplace, but alsoshows the high regard in which the virtual platform is held in day-to-day business.

Ewald Heim and Nadja Müller, from Panalpina Germany (front row, l-r); Andrea Sinclair, GF-X; Jörg Meyer-Schuchardt, ASB-Air Frankfurt;Christian Schink, Panalpina Regional Center Europe; AlexanderMehr, Kerstin Schreiber, Ralf Buchberger, Volker Werner, all fromPanalpina Frankfurt (back row, l-r).

Natalie Kelly, Matthew Paxman, Richard Hartmann, Glenn Barnes, SteveWilliams, Sukh Guru, Lynne Stewart, all from Panalpina London (l-r).

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Francisco Domingo PauloPanalpina Angola, African Star.

“The combined air-sea ‘African Star’ service links oil & gas customers alongthe West African coast with Panalpina’sglobal airfreight network. I ensure thatthe right goods are delivered to the rightplace – whether it’s a port or a platformon the open sea. What I like best is thecontact with the customers. When every-thing runs smoothly and my customersare satisfied all round, I feel I’ve met mygoal. I enjoy my work a lot. Thanks toPanalpina I’m always learning new thingsand addressing new challenges.”

“Satisfied customers all round”