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Tag: Logistics

  • Yang Kee Logistics to buy second major Oceania logistics company for S$52.1 million

    Yang Kee Logistics to buy second major Oceania logistics company for S$52.1 million

    Yang Kee Logistics Pte Ltd has announced that it has entered into a Scheme Implementation Agreement with New Zealand Exchange Mainboard listed company, Fliway Group Ltd. This will be Yang Kee’s second major Oceania acquisition this year with the support of International Enterprise (IE) Singapore.

    The acquisition value of S$52.1 million for 100 per cent of the shares in Fliway would boost the group’s revenue by another S$81.9 million with a stronger foothold in the Oceania market. This announcement comes on the back of its first Oceania acquisition of Australia logistics company Axima Pty Ltd in March this year. The combined Yang Kee group will have a headcount of over 1050 employees across 12 countries, and an expected revenue of over S$400 million once the acquisition is fully completed.

    Under the SIA, it is proposed that Yang Kee acquires all the outstanding shares in Fliway for NZ$1.22 cash per share by way of a scheme of arrangement. The scheme is conditional on the approval of Fliway’s shareholders and the High Court, amongst other things.

    “It is part of our vision to strengthen our presence in Oceania as we go global. New Zealand has a stable currency and economic outlook, a growing middle class, and a demand for integrated freight and logistics solutions. New Zealand also enjoys strong trade relations with Australia, with bilateral trade reaching NZ$24 billion for the year ended March 2017. We hope to yield greater synergies from the network integration of shared international freight volumes between Fliway and Axima and cross selling opportunities in their combined customer bases to Asia,” said Ken Koh, group CEO of Yang Kee Logistics.

    Fliway is one of New Zealand’s largest fully integrated logistics providers. Having over 40 years of operational experience in New Zealand, it has established strong domestic capabilities in transport and warehousing with substantial presence in the electronics and consumer industries.

    Fliway also has an established international division with a freight arm. One of New Zealand’s largest customs brokers, it is consistently ranked amongst the top customs lodgers of entries by volume. This complements Yang Kee’s earlier strategic acquisition of Australian based company, Axima, to facilitate cross Oceania trade between Australia and New Zealand, as well as trade flows between Oceania and Yang Kee’s existing networks in South East Asia and China.

    “This is a significant milestone for Fliway, and reflects our long held view that there are strong growth opportunities that come from leveraging a larger geographic footprint across Oceania and Asia. Being part of the Yang Kee Group delivers on that and provides scale to support Fliway’s customers, both in New Zealand and throughout the Asia Pacific region,” said Duncan Hawkesby, managing director of Fliway Group Ltd.

    IE Singapore partners Yang Kee Logistics in its global growth strategy

    Yang Kee is partnering IE Singapore as it embarks on an acquisition strategy to gain new networks and capabilities to become a global logistics player. IE Singapore worked with Yang Kee to deepen its foothold in these markets and enhance its end-to-end supply chain networks. This included connecting them to business development leads and providing support in feasibility studies, due diligence, financial and legal professional services for the acquisition of both Fliway and Axima.

    Recognising the importance of a robust and global recruitment HR strategy to support its growth, Yang Kee is working with IE Singapore to develop an international manpower strategy to build a global team, with its Singapore headquarters setting the standards and best practices.

    Said Law Chung Ming, group director for Transport & Logistics, IE Singapore, “The combined strengths of Axima and Fliway enhance Yang Kee’s global networks and supply chain capabilities. Furthermore, their logistics solutions will now serve as a resource for other Singapore companies to access the Australia and New Zealand markets. As we work with Yang Kee on its next stage of growth, talent development will be very critical. Specifically, we need to groom talent with specialised logistics skillsets for new business segments, and market ready skillsets for deep understanding of market needs.”

    For example, to help Yang Kee meet its global manpower needs, IE Singapore supported the company in building presence on LinkedIn, working on a digital employer strategy to engage and recruit relevant employees. Yang Kee is also one of the first few companies on board IE’s Professional Conversion Programme (PCP) – South East Asia Ready Talent for logistics, with two candidates taking part in the programme. They will receive on-the-job training and gain exposure to regional logistics projects, building the company’s manpower capabilities in specialised logistics.

    Yang Kee has also worked with SPRING Singapore to develop relevant skills and knowledge among its employees through a career development pathway. With SPRING’s support, Yang Kee also developed new business capabilities such as specialised services for the chemicals and oil & gas sectors with the launch of its Chemical Logistics Hub, enabling it to secure contracts with large global chemical clients.

    Financing of the acquisition

    The acquisition of Fliway was financed by the Australia and New Zealand Banking Group Limited as well as United Orient Capital, a special situation fund sponsored by the United Overseas Bank Limited.

    Yeo Wee Yap, executive director of United Orient Capital said, “Yang Kee’s experienced management team has helped the group successfully broaden its footprint across the region. We are pleased to support Yang Kee’s internationalisation plan and we look forward to working closely with the group as it embarks on the next phase of growth with its expansion into New Zealand.”

    ANZ is the sole mandated lead arranger, underwriter and bookrunner for Yang Kee’s acquisition of Fliway, as well as the earlier acquisition of Axima.

    Chief executive officer Singapore and head of South East Asia, India and Middle East, ANZ, David Green said, “We are pleased to lead the financing for Yang Kee’s acquisition of Fliway, building on the success of their recent acquisition of Axima which we also supported as lead arranger. We have a strong partnership with Yang Kee and are proud to play a role in supporting their growth strategy alongside important partners like IE Singapore, drawing on our cross-border product capability, transport and logistics sector insights and network across Asia, Australia and New Zealand.”

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  • FedEx supports healthcare industry by providing end-to-end visibility for critical shipments

    FedEx supports healthcare industry by providing end-to-end visibility for critical shipments

    FedEx Express has announced the expansion of its SenseAware service in Asia Pacific. The launch in South Korea will help strengthen FedEx healthcare solutions and support the rising logistics demands of the burgeoning healthcare sector in the region.

    Healthcare is one of the world’s largest industry, with a value three times greater than the banking sector, and it is still growing rapidly. Driven by the global expansion, the associated spending on healthcare logistics is expected to rise exponentially. By 2020, clinical trials logistics spending is expected to reach US$3.4 billion and cold chain logistics spending is expected to increase to US$16.7 billion. Asia Pacific, which currently represents 30 per cent of global healthcare revenues, is expected to lead the global growth in 2017 at an eight per cent rate (global projected growth rate is 4.8 per cent).

    “The immense growth of the healthcare industry is driving the demand for highly sophisticated logistics and temperature-controlled transportation across Asia Pacific,” said Karen Reddington, president, FedEx Express Asia Pacific. “FedEx is constantly looking to strengthen the range of specialized solutions for our customers. The launch of SenseAware in Korea rides on the strong growth momentum of healthcare shipments, and aims to fulfil the unique supply chain needs of our healthcare customers.”

    SenseAware will be especially valuable to customers in the healthcare sector where shipments are often environment- and time-sensitive. A multi-sensor device that is deeply integrated with a powerful web-based application, SenseAware makes it possible for customers to stay connected to their high-value shipments. The SenseAware service can monitor current location, precise temperature, relative humidity, barometric pressure readings, light exposure and shock events, and provide real-time updates to customers.

    The SenseAware service is currently available in 43 markets worldwide. In Asia Pacific, the service is available in Australia, Guam, Hong Kong, Malaysia, New Zealand, Singapore and Taiwan. The service is also available on a growing list of air and ground transportation carriers, giving more transportation options to customers in order to better fit their specific needs, while still delivering the peace of mind and quality assurance provided by SenseAware.

  • Phee Group brings logistics solutions to Myanmar’s shores

    Phee Group brings logistics solutions to Myanmar’s shores

    Singapore-based, multinational shipping and logistics pioneer, Phee Group, has established Phee Central, a 60,000 square feet logistics centre in Myanmar to cater to a diverse array of logistics needs from businesses in the growing market. It is breaking into this new business segment after having specialised in freight forwarding for over 24 years in Myanmar. This was done with the support of International Enterprise (IE) Singapore, government agency promoting international trade and partnering Singapore companies to go global.

    An investment of US$5 million, the ISO 9001: 2015 and HACCP and GMP certified Phee Central, a multi-temperature storage facility, is situated a mere 25 kilometres from the BSW, MIP and AWP ports and less than 25 kilometres from Yangon International Airport.

    The facility serves a valuable logistics function with the potential to greatly optimise supply chains. Built on 3.2 acres of elevated ground with an around-the-clock security system, Phee Central is equipped with high capacity backup generators to provide an uninterrupted power supply. It is the first of its kind to support a state-of-the-art column-free design that maximises capacity and improves efficiency.

    Phee Central distinguishes itself through delivering a higher standard of reliability matched by advanced technologies. Its Warehouse Management System (WMS) relays live updates of inventory statuses for each client’s warehouse activities. This data is accessible in real-time via web-enabled storage technology, ensuring both reliability and accuracy. Other value-added services include contract logistics, freight consolidation, carrier management, customs brokerage and trade compliance management.

    Ben Phee, group managing director of OV Logistics and Phee Group, said, “It has always been our aspiration to provide a more extensive array of services that offer a peace-of-mind to our clients. With Phee Central, we are not only able to achieve this, we are also able to reduce the wastage of resources and materials due to inadequate storage. Coupled with our temperature-controlled delivery system, we are confident in delivering highly reliable all-rounded logistics solutions for our clients.

    Above all, Phee Central illustrates our commitment to serve the Singapore and Myanmar community. On this note, we are honoured to be recognised by the respective Myanmar authorities for our professional experience and contribution to this country and supported by IE Singapore to realise our commitment of investing and expanding in Myanmar possible more rapidly.”

    Phee Group has been working with IE Singapore on its expansion strategy in Myanmar. Its entry into specialised logistics solutions is timely as Myanmar’s economic reforms and rising middle class have attracted many foreign investments in various sectors of the economy, including food and beverage, hospitality and pharmaceutical equipment and medicines. This brings demand for specialised supply chain solutions such as temperature controlled logistics facilities. As the local logistics infrastructure is still in nascent stage, demand for such services presents opportunities for Singapore logistics companies. Phee Group has risen to bridge the market gaps with its new warehouse, Phee Central.

    Said Law Chung Ming, group director of Transport & Logistics Group for IE Singapore, “It is important for Singapore companies to constantly transform themselves to capture opportunities in fast-growing regional markets such as Myanmar. Having established in Myanmar for over 20 years, Phee has built a firm understanding of the market needs, putting it in a good position to provide specialised cold chain logistics solutions. To build their business in Myanmar, we worked with the company to develop Singaporean talents with specific, customised skill sets in specialised logistics and market-readiness.”

    IE Singapore supported Phee Group by developing a manpower strategy to improving its recruitment, training and retention processes for its operations at Phee Central warehouse. This included market attachments to help their new employees better understand the environment and the cold chain business landscape in Myanmar. Through IE’s support, Phee Group is able to achieve greater regional growth and expansion.

    Headquartered in Singapore, Phee Group crafts unique integrated logistics solutions and practices that are thorough and reliable. Benchmarked to meet the conditions of the Myanmar marketplace, they also effectively resolve complex operations in a simple manner.

    Phee is also looking to partner Singaporean companies to tap onto its logistics solutions, as well as share its insights and networks in the ASEAN market which it has operated in for over two decades.

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  • Lazada’s logistics battle to win Southeast Asia

    Lazada’s logistics battle to win Southeast Asia

    Southeast Asia is on the verge of a logistics “boom” thanks to e-commerce, but will require huge investment in cities and last-mile networks to cope, says Pierre Poignant, the man behind the systems that keep Alibaba-owned Lazada moving.

    Mr Poignant, chief operating officer, said the Singapore-based marketplace, for its part, would continue to bet on delivery and other partnerships as demand grows. It already works with more than 100 companies in delivery and cross-border logistics, from Ninjavan in Singapore to ride-hailing start-up Go-Jek in Jakarta.

    But it will expand its footprint to cut costs and improve services, with smaller local hubs closer to customers, as well as a major warehouse it can use in Malaysia for goods that move less often. Lazada, with 130,000 merchants on its platform, has 14 warehouses and over 2 million square feet of space — and plans to open another five to six warehouses next year. It also has 130 smaller distribution centres.

    “Logistics in Southeast Asia is going to look very different from the rest of the world. It is hard to believe one player can do everything,” Mr Poignant said in an interview.

    “The distance from Aceh to Papua [in Indonesia] is bigger than the distance from Miami to Seattle. People don’t realise.”

    Already the world’s fourth-largest internet market, Southeast Asia is expanding at a rate of almost 4 million users a month, making it the fastest-growing e-commerce market globally, according to a 2016 report co-authored by Google.

    But while there are key growth engines — a young population of active mobile users and a patchy local retail network — there are also major challenges, as companies like Lazada try to conquer a region made up of thousands of islands, with poor roads and traffic-clogged cities.

    Some regions have no formal system for home addresses, Mr Poignant said, complicating deliveries, returns and even payment — more than half of transactions are still settled in cash.

    That leads to experiments, combining online purchases with offline pick-up in malls, as in Singapore — or in Indonesia, where Lazada handles a bulk of the last-mile delivery itself, using three-wheeled electric vehicles for bigger parcels. Cars and vans are too slow in traffic, Mr Poignant said.

    Taking the lead

    Amazon and others, including local players, have not failed to notice the region’s potential: Amazon is using Singapore as its beachhead, while China’s second largest e-commerce company JD.com is making Thailand its point of departure, partnering with the country’s largest retailer, Central Group.

    But Mr Poignant argues Lazada’s experience is hard to beat.

    “When it comes to logistics we are developing a distinct competitive advantage. We are the only ones to have this open network approach — combining our own infrastructure and partners,” Mr Poignant said.

    “Setting up a logistics network is a complex, long process.”

    Critical to keeping the advantage is also data, and Lazada is linking up with fast-moving goods producers like Unilever, to turn knowledge into target sales.

    Alibaba bought into Lazada last year in an effort to seek growth outside China. The $1-billion deal in April 2016 was Alibaba’s largest overseas deal and it raised its stake to over 80% this year.

    Last November, Lazada bought Singapore online grocer Redmart, a purchase that it hopes will help it crack cold storage and expand groceries into the rest of the region, though there is no concrete plan yet, Mr Poignant said.

    “One of the reasons why we acquired RedMart is that groceries is a very specific set of skills that you need to develop,” Mr Poignant said. “We have the ambition to develop this category across the region.”

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  • U-Freight gains further accreditation for e-commerce capabilities

    U-Freight gains further accreditation for e-commerce capabilities

    The U-Freight Group (UFL) has seen its North American E-commerce Fulfillment Centre (EFC) being named as one of the most valuable by the China Cross Border Electronic Commerce Professional Committee. Diana Peng, vice president of the Hong Kong-based freight forwarding and logistics company UFL received the award at the recent Global E-Commerce Conference held during the China International Fair for Investment and Trade in Xiamen.

    CEO, Simon Wong, commented, “U-Freight has been a pioneer in developing logistics services for the e-commerce market, which resulted in us being early-qualified by China Customs and CIQ as a licensed Cross-border E-Commerce Enterprise, as well as a Cross-border E-Commerce Logistics Service Provider. With an extremely strong e-commerce logistics set-up in China, U-Freight has committed to investing in redevelopments at a number of its warehouses around the world to better equip them to handle the logistics associated with the ever-growing global e-commerce business.”

    Wong added, “As part of that we have invested in developing enhanced facilities at our EFC in USA, which has been rewarded by our being named as one of the most valuable North America EFC by the China Cross Border Electronic Commerce Professional Committee. We have a system that can connect e-commerce/e-shop platforms with relevant customs authorities and, which delivers data transparency. This is something that is on offer at all of our facilities around the world that offer e-commerce logistics services.

    “The e-commerce industry, led by China, is a new engine of growth for the global economy, and the value of global e-commerce transactions will only rise with increasing internet penetration and recognition. China is leading the way and e-commerce trading in China reached 26.1 trillion yuan (USD3.8 trillion) in 2016. Cross-border e-commerce surpassed five trillion yuan, up 28.2 per cent, statistics from the 2016-17 Chinese E-commerce Development Report show. The report also said that by June this year, the number of online shopping customers in China reached 514 million, 10.2 per cent higher than in December 2016.”

    According to Wong, in the future, cross-border e-commerce will become a new growth point, thanks to the business environment fostered by China’s Belt and Road Initiative and structural supply side reform in the country. The coming years will also see the integration of online and offline services, as well as more intelligent and innovative online retail sales models.

    “IT technology, including cloud computing, big data, internet of things, artificial intelligence and virtual reality, will play a more important part in the whole e-commerce industry and U-Freight is positioning itself to play its part by developing e-commerce fulfilment centres that deliver cost-effective and efficient logistics services,” said Wong.

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  • Jetpack Aviation appoints B&H worldwide as global logistics partner

    Jetpack Aviation appoints B&H worldwide as global logistics partner

    B&H Worldwide has been appointed as the Global Logistics Partner for JetPack Aviation, creator of the turbine powered, backpack style JetPack . JetPack Aviation (JPA), a leader in micro VTOL (Vertical Take Off and Landing) design, made aviation history in late 2015 when CEO David Mayman flew around the Statue of Liberty to demonstrate the company’s design and engineering capabilities. Nelson Tyler, JetPack Aviation’s principal designer built the civilian RocketBelt which was flown at the opening ceremony of the Los Angeles Olympics in 1984.

    The current JetPack model JB-10 is small enough to fit in the back of a standard SUV, and light enough to be carried by the pilot for easy transport and deployment. The aircraft can be powered by common kerosene or diesel car fuel, achieve flight speed upwards of 100mph and an altitude in excess of 10,000 feet. Proprietary on-board computer systems designed in-house by JPA engineers control the engines, manage fuel flow and transfer real-time system data to the pilot for safe and reliable flights. JetPacks are available for military, first responder, industrial and entertainment applications.

    B&H CEO, Stuart Allen, said, “We have always prided ourselves on being at the cutting edge of aviation logistics and this exciting announcement opens up a whole new world of specialist logistics. We are delighted to have been chosen by the JetPack Aviation team to manage and deliver logistics services for these unique vehicles.”

    JetPack’s David Mayman, added, “Whether we are enabling the extraction of Special Forces soldiers, moving emergency medics from hospital to disaster site, or commuters from home to office – JPA is focused on a wide range of vertical takeoff and landing transportation solutions. We are excited to have the B&H team help us achieve these goals.”

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  • FedEx recognised for global leadership, operational strength and services

    FedEx recognised for global leadership, operational strength and services

    FedEx Express (FedEx), a subsidiary of FedEx Corp, received the ‘Global Express Provider of the Year’ award at the Payload Asia Awards Ceremony held in Singapore on October 12. This award reaffirms FedEx global market leadership, operational strength and exceptional solutions and services.

    Mark Shorney, vice president, South Pacific, FedEx Express (L) receives the ‘Global Express Provider of the Year’ Award at the Payload Asia Awards 2017.

    “At FedEx, we are committed to providing best-in-class express services and a comprehensive solution portfolio to meet the diverse needs of our customers of all sizes,” said Karen Reddington, president, FedEx Express Asia Pacific. “This award serves as a testament to our strong and agile operations across the globe and an even greater incentive to all team members to continue to deliver on the Purple Promise of making every FedEx experience outstanding.”

    In its fourth year, the annual Payload Asia Awards is organised by Payload Asia and Logistics Insight Asia. The award winners are selected through a dual track programme comprising Customer Choice Awards and Industry Choice Awards – the former determined by public online voting and the latter through ranking by an esteemed industry panel including the International Air Transport Association (IATA), Airbus and Accenture Consulting.

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  • DHL launches Service Logistics final mile solution to the Life Sciences Medical Device sector

    DHL launches Service Logistics final mile solution to the Life Sciences Medical Device sector

    DHL Supply Chain has launched a new service logistics solution for the medical device sector which consolidates field inventory into single locations and uses quality management systems to provide better control and traceability of valuable products.

    This solution comes in response to a number of growing industry challenges, including greater demand from an ageing and more active population through to increasing cost pressure from healthcare providers. These factors have led to an ever-increasing need to better manage inventory, both in the field and in hospital. The final mile solution focuses on the need for companies in the medical device sector to address the compromises between cost and availability and drive efficiencies in field inventory.

    Tim Slater, CEO, DHL Supply Chain, Life Sciences said, “This solution draws on our Life Sciences expertise in managing critical lifesaving products and our global capability to organise mission critical deliveries into complex environments. It is replicable, provides high visibility of inventory both inside and outside the hospital and is fully compliant globally with the rigorous standards required. It facilitates a reduction of capital commitment for inventory through just-in-time availability to hospitals, removing the requirement for just-in-case storage of medical devices.”

    In addition to better managing consigned inventory, the solution will free up medical device sales rep resource from actively manage, check and locate stock to enable more time on interacting with customers.

    John Farrell, president, DHL Supply Chain, Service Logistics Solutions commented, “We have built our expertise through successfully deploying a similar solution in the technology sector. It is ideally suited to the medical device market, where critical products are required just-in-time. We provide full stock visibility and control through pooling of consignment stocks outside of hospitals; while providing mission critical availability of inventory on a same day basis.”

    The solution utilises an established global supply chain infrastructure that is certified to the required standards for each market. The solution is already deployed for a major global provider of medical devices in multiple countries across the world.

    In addition to better managing consigned inventory and improving sales force efficiency, it also provides a platform to standardised service and quality systems; whilst at the same time enabling product returns, customer segmentation activities such as kitting and value-added services to meet local market and customer needs.

  • DHL shows how smart glasses can help improve warehouse operations

    DHL shows how smart glasses can help improve warehouse operations

    Augmented reality (AR) is increasingly finding its way into the enterprise. For instance, DHL Supply Chain completed its AR pilots earlier this year in a bid to improve efficiency and productivity in its warehouses, Keya Chaturvedi, Trend Research Manager at DHL, told delegates at the recent Tech Summit 2017 in Singapore.

    Since the wearable provided visual displays of order picking instructions along with information on where the items are located and where they need to be placed on a cart, pickers no longer needed to rely on paper instructions. This enabled higher accuracy rates, and productivity to improve by an average of 15 percent, said Chaturvedi.

    In addition, the pickers were pleased with how the smart glasses has made the now hands-free picking process more comfortable and efficient , she added.

    Driven by the positive outcome, DHL has expanded the use of smart glasses to more warehouses around the world.

    Chaturvedi also anticipates that smart glasses will be of greater use in other areas of her business such as being used to scan and identify delivery vans. With smart glasses, it will be easier to record critical information, such as cargo temperature and security threats on the road which may affect delivery conditions, she explained.

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  • DHL gears up for logistics boost from Thailand’s Eastern Economic Corridor

    DHL gears up for logistics boost from Thailand’s Eastern Economic Corridor

    The development of Thailand’s Eastern Economic Corridor (EEC) is set to boost the country’s contract logistics sector.

    On Tuesday, Thailand’s ruling junta approved a plan to accelerate investment for the EEC project, which will see the region developed into a $45bn special economic zone by 2021.

    According to Kevin Burrell, chief executive of DHL Supply Chain’s Thailand Cluster, the EEC will attract a whole range of new investors to the country.

    He told that the next-generation automotive, smart electronics, affluent medical and wellness tourism, agriculture and biotechnology, food innovation, industrial and lifestyle robotics, aerospace, logistics and aviation, biofuel and biochemical, and medical services and healthcare were all industries set to see increased levels of activity.

    “I believe that the automotive, industrial, technology and healthcare and life sciences sectors will further drive contract logistics growth under the EEC program,” he added.

    According to the Thailand Board of Investment, the EEC spans 13,285 sq km across three provinces in eastern Thailand, Chachoengsao, Chonburi and Rayong.

    The plan is to turn the region into a key investment, technology and transportation hub via infrastructure improvements and by designating the area as special economic zone to attract foreign direct investment.

    “With the EEC, the Thai government is prioritising the creation of faster and more comprehensive routes between airports, ports, industrial clusters and urban centres throughout Thailand by developing high-speed and double-track railways,” explained Mr Burrell.

    High-speed rail will link the three main international airports, Don Mueang, Suvarnabhumi and U-Tapao, while double-track railways will connect key industrial zones such as Laem Chabang, Map Ta Phut and Sattahip Commercial Port. A new motorway will connect Bangkok to Rayong.

    Mr Burrell said the project would enhance South-east Asia’s broader logistics connectivity, so long as cross-border trade was allowed to flow smoothly.

    “The new rail network, when connected to neighbouring countries and deployed with efficiency and cost-effectiveness, should provide significant enhancements to logistics efficiency across the region. Coupled with the development of highways across Asia, it will provide a perfect platform for the efficient flow of goods.

    “What is still to be seen is border crossing harmonisation. What really needs to be developed is an efficient manner to allow vehicles to drive across borders with limited delays from customs processes.”

    DHL Supply Chain is to invest more than €70m to grow its regional footprint in Thailand, Vietnam, Cambodia and Myanmar by 2020. It plans new facilities, expanding its fleet of trucks and new technology to create an additional 5,000 jobs in the four countries.

    DHL recently completed a move to new premises in Bangkok’s business area. From there it has a nationwide network of 70 facilities, with combined warehouse space of 650,000sq metres and 10,000 employees.

    However, Mr Burrell added, finding suitable labour was becoming increasingly challenging, and as a result, greater warehouse automation would be deployed to fill the gap.

    “It becomes more and more difficult to find workers. That’s why we have opened our labour force to foreign labour. However, the regulations around foreign labour are understandably detailed and complicated. As a result, we have looked at alternatives to derive greater operational efficiencies and have started to deploy automation systems in some facilities.

    “Looking ahead, we see an ever-widening shortage of drivers for heavy goods vehicles. We feel it is essential to address this issue; one option is to allow foreign drivers to drive in Thailand, and an alternative is a government initiative to encourage development in this important space,” he said.

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  • Lalamove raises US$100m in series-C funding

    Lalamove raises US$100m in series-C funding

    Same-day delivery and logistics provider Lalamove has completed a US$100 million series-C funding round.

    Aside from market expansion, the cash injection will also be used to invest into talent across the organisation, to add product features and to allow businesses more direct access to Lalamove’s fleet of drivers. One example is new integration technology to help SMEs include the company’s on-demand delivery as part of their own business services.

    “We foresee strong growth in last-mile delivery, and this has been reflected in Lalamove’s growth and performance,” says partner Cheng Tian of venture capital firm ShunWei Capital, which led the round..

    “In only a couple years, Lalamove’s standardisation, speed of service, lean operations and execution strategies have all drastically improved efficiency, lending to its excellent reputation across Asia.”

    “Delivery of information takes seconds, but delivering physical goods is still relatively slow,” says Lalamove founder/CEO Shing Chow. “We want to change that, and want delivery to be measured in minutes, not days. Our average order-to-delivery time is very quick at 46 minutes, but we want to achieve even more.”

    In July, the Hong Kong-based company added its 100th city for deliveries. It has more than 15 million users and is supported by more than 2 million drivers while continuing to expand across China and Southeast Asia.

    It currently operates in Hong Kong, Thailand, Singapore, the Philippines and Vietnam.

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  • Leading logistics networks strike groundbreaking deal

    Leading logistics networks strike groundbreaking deal

    Elite Global Logistics Network (EGLN) has announced to its membership during its annual conference in Vietnam this week, that it has reached a formal agreement for WCA Ltd to acquire a majority interest in the rapidly-growing network. Formed in 2015, EGLN has seen its membership around the world flourish to now encompass 332 memberships in 131 countries. The acquisition by WCA will enable the network to move to the next stage of its development and provide member companies with increased opportunities for business expansion and organic growth.

    Roy Stapleton will remain as president of EGLN and will continue to set the network’s strategy as well as overseeing day-to-day operations. “This new agreement is unprecedented in the history of freight networks. EGLN is proud to become a part what we believe is a ‘win-win’ solution for our members and the network,” said Stapleton.

    “The suite of benefits evolved by WCA has allowed it to stand out as a networking leader, and EGLN members will benefit from these obvious synergies offered by this unique partnership.”

    WCA Chairman and founder David Yokeum stated that 2018 will prove to be an exciting year for EGLN, following the formal commencement of the agreement on 1 January.

    “Roy has, over many years, built a deservedly strong reputation for providing independent forwarders with high quality environment in which members feel secure and confident that their business will grow,” said Yokeum.

    “EGLN will retain its unique ethos and management style, but by adding many of WCA’s valued benefits and attributes, alongside strong backroom and financial support, EGLN has the tools to embark on an exciting new phase in its development.”

  • Marken expands logistics footprint with Touchdown International acquisition

    Marken expands logistics footprint with Touchdown International acquisition

    Marken has acquired Touchdown International Ltd, a privately held specialty logistics company in Taiwan, for an undisclosed sum. Touchdown is dedicated to the life sciences industry and complements Marken’s strategy to continue expanding in the Asia Pacific region.

    Touchdown was founded in 2013 as a specialty courier with specific expertise in clinical trials logistics.  In 2015, Marken entered into an exclusive sales and agency contract with Touchdown, which allowed Marken to quickly establish its brand with local pharmaceutical and life science clients.  With a dedicated staff and fleet of vehicles, Touchdown provides courier services across Taiwan for biological samples, clinical trial drug shipments, API-, and other clinical trial materials. The acquisition enables Marken to expand its service offerings in Taiwan by leveraging both Marken’s and UPS’ global transportation networks.

    With the acquisition of Touchdown, Marken now has its own operational presence in Taiwan and adds its 46th global location to a continually expanding network of logistics sites, depots and regional offices.  The new legal entity will be named Marken Taiwan Ltd. with its headquarters in Taipei.

    Mike Wu, the founder and CEO of Touchdown, will remain with Marken as the new general manager in Taiwan. Mike commented, “We have worked hard to establish Marken’s brand locally in Taiwan. We respect Marken’s approach to clinical trial logistics and are proud to introduce their services to our local life science clients. We are very much looking forward to becoming part of the Marken family.”

    Michael Culme-Seymour, VP APAC for Marken stated, “Asia continues to be a vital part of Marken’s strategic growth plans.  With the acquisition of Touchdown, we now have a solid footprint in Taiwan, whose pharma market is expected to grow to US$84 billion by 2020. We can now serve our clients in Taiwan with the depth and breadth of our global services.”

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  • X2 Logistics Network member handles transport for project cargo of oversized equipment

    X2 Logistics Network member handles transport for project cargo of oversized equipment

    X2 Logistics Network member Centauro was nominated to handle Integrated Multimodal Logistics by Sea and Land of an Autoclaved Cellular Concrete Plant (HCA) from Shanghai, China to the province of Santa Fe, Argentina. After participating in a competitive bid along with locals and multinational freight forwarders, Centauro was honoured by client’s nomination due to the proven experience and trajectory of the company in the development of projects in Argentina.

    Centauro arranged the overall negotiation and vessel contract, as well as port operations and road transportation upon arrival at Port of Buenos Aires to client’s plant. A fluid and permanent contact was maintained with all parties involved including a European technologist, the Chinese manufacturer and the Argentine importer with the aim of complying times and logistical restrictions presented in the project.

    The shipment of the three largest pieces, 35 metres long and 74 tonnes each, together with the rest of the components, was shipped on vessel BBC Oregon, taking 55 days transit time from Shanghai to Buenos Aires. The unloading operations in Buenos Aires port were also supervised and controlled by Centauro staff as well as the conditioning and road transportation of the big pieces to the customer’s premises using three multi axle trailers, flat bed carts and support equipment in convoy with special road permits and police custody.

    The multimodal service from Shanghai to Santa Fe was performed in 62 days, delivering the cargo at final destination with full customer satisfaction. This first stage of the project will be completed soon with the shipment of more than 80 containers from Northern Europe ports using Port of Rosario, Argentina as local entrance port.

    X2 founder & CEO Richard Overton commented, “It makes me extremely happy to see the kind of work fellow X2 Members are doing. I have no doubt in my mind that we are going to be seeing a lot more amazing projects before our 5th Anniversary Conference which is coming up in February 2018.”

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  • DHL to create, manage European distribution centres for Eaton’s electrical business

    DHL to create, manage European distribution centres for Eaton’s electrical business

    DHL Supply Chain has signed a long-term agreement with the global power management company Eaton to create and manage three distribution centres for their Electrical business in Europe.

    Over the next few years, the contract logistics specialist within Deutsche Post DHL Group will consolidate Eaton’s major standalone distribution centre capabilities throughout Europe into three high-performing and integrated primary distribution centres. These will be located in Germany, UK and Czech Republic, where the current DHL managed distribution centre will be expanded.

    “Eaton has been a valued partner for years and we are delighted to further intensify our collaboration. Based on DHL Supply Chain’s broad expertise in devising integrated supply chain solutions, we developed the Rheinbach concept for a full warehouse consolidation, starting with planning, construction, fit out and full automation to the initial setup and operation,” said Oscar de Bok, CEO, DHL Supply Chain Mainland Europe, Middle East & Africa.

    In Rheinbach, Germany, a new building is being planned which will serve Eaton’s customers in Western Europe. The green field construction is scheduled to start in the fourth quarter 2017, with DHL storing and distributing different electric components such as switch cabinets, fuses and control devices in the new warehouse after its completion in 2018. The goal is to create a more efficient warehousing concept enabled by a fully automated solution and thereby reducing overall run times to meet increased customer demand.

    “Providing tailored contract logistics solutions is one of our globally proven strengths and the newly to-be-constructed warehousing solution will help Eaton to prepare its business for a successful future,” Karsten Schwarz, CEO, DHL Supply Chain Germany and Alps said. “The new facility will not only provide a significant increase in productivity due to its innovative set up but also demonstrates DHL’s commitment to the wider Bonn region.”

    As both DHL and Eaton have a strong commitment for sustainability with corresponding goals, the new warehousing site is to comply with the standards of the German Society for Sustainable Construction (DGNB) and will be built to achieve the silver certificate of the association.

    “DHL is very experienced in warehousing and distribution as well as supply chain solutions and we can help with their environmental focus and drive energy efficiency by applying Eaton’s power management technologies to their facilities. It’s a very interesting partnership where we support each other’s growth while we keep focused on our core businesses,” said Klaus Gaeb, vice president, Supply Chain and Operational Excellence, Eaton EMEA.

    As DHL already has a significant footprint in Europe, this revised distribution approach would also provide strong future prospects to the majority of distribution centre employees from Eaton covered by this agreement, who have been given the opportunity to join DHL following the completion process.

    With these new agreements, Deutsche Post DHL Group and Eaton are taking the next step in extending their strategic partnership. Since 2008, DHL has been supporting Eaton in the review and improvement of its supply chains across the globe, winning the company’s Best Supplier Award in 2016.