DHL CEO Frank Appel: “More globalisation means more prosperity”

After a record year in 2016, Deutsche Post DHL Group is facing the future with confidence.
“2016 was an excellent year for us and we have a clear idea of what the future of logistics will look like,” said Frank Appel, CEO, DHL, at the Annual General Meeting in Bochum in late April. “We are investing in expanding our network and in technology. We are working in a focused and connected way – and we will continue to grow.”
Appel also confirmed the Group’s ambitious targets – operating profit is to rise from 3.5 billion ($5.1 billion) to around 3.75 billion ($5.5 billion) in 2017, and EBIT is to be increased by an annual average of more than 8 per cent between 2013 and 2020.
Speaking to shareholders, Frank Appel voiced his optimism that global trade would continue to grow despite mounting protectionist tendencies. “World trade drives prosperity, and prosperity promotes peace,” he said. “We therefore don’t need less globalisation, but more – and we need it now and sustainably.”
He stated that countries should invest more in education and infrastructure in the interests of long-term growth.
“Logistics is the backbone of global trade,” he said, adding that global teamwork was impossible without it. “Of all logistics service providers, we have the strongest global presence. We have the widest range of offerings and most extensive experience. We know how logistics works and, as the market leader, we have a clear idea of how our industry can continue to contribute to global prosperity,” he added.

Harnessing big data for transport, infrastructure planning

Australian vehicle traffic data being collected via satellite could soon be used by the Australian, state and territory governments to plan for future investments in essential transport infrastructure.
Minister for Urban Infrastructure Paul Fletcher has released the terms of reference for the Data Collection and Dissemination Plan project, with a draft plan scheduled for release within six months.
“Technology is having a transformative effect on transport and infrastructure and the opportunities provided by data are immense,” said Fletcher.
“This project – which involves the federal, state and territory governments, and representatives from the transport sector and academia – will examine how this wealth of big data information can be used to better inform the decision-making process.”
The Australian Government then plans to utilise this emerging technology to help address the future infrastructure needs of Australia’s growing population.
“By providing information on freight routes, speeds and fleet composition, big data has the potential to improve the productive capacity of both current and future transport networks,” said Fletcher.
The Bureau of Infrastructure, Transport and Regional Economics (BITRE) will lead the project, overseen by a Steering Group comprising industry, academia and government representatives.
The project was launched in Sydney at an event hosted by the SMART Infrastructure Facility, from the University of Wollongong. This initiative forms part of the Australian Government’s response to Infrastructure Australia’s Australian Infrastructure Plan.

DB Schenker wins freight forwarding and customs clearance contract

DB Schenker has announced that it has been awarded a contract to provide international freight forwarding and customs clearance services to Chevron Australia.
The three-year contract covers freight logistics movements as well as customs clearance requirements for Chevron’s interests in Western Australia.
To support the contract, DB Schenker will utilise its global network of oil and gas offices. The operations team in Perth will be supported by the DB Schenker iTeams software solution that allows for full visibility and tracking through all stages of the logistics cycle.
“We are proud to continue our relationship with Chevron. With our dedicated people around the world we have a strong record of operating safely and efficiently even on the most remote sites,” said Frank Vogel, Director Projects/Oil & Gas, AU/NZ. “The contract will support our goal to become the market leader in the industry by 2020.”

New bridges to futureproof Inland Rail

The Federal Government has announced that two new railway bridges will be constructed in regional NSW, along the route of the Inland Rail project.
The Australian Logistics Council (ALC) welcomed the news as a sign of the Government’s continuing commitment to the project.
“This announcement is further evidence that we are making progress in the construction of Inland Rail,” said Michael Kilgariff, Managing Director, ALC.
“Confirmation that two new bridges are to be constructed between Parkes and Narromine shows that the Federal Government is essentially futureproofing sections of existing rail track to accommodate the larger trains the Inland Rail line will facilitate,” he added.
“Replacing timber bridges at Tomingley West and Narwonah with reinforced concrete structures is an important step in making certain existing rail infrastructure will support the delivery of Inland Rail,” he said.
Kilgariff added that the Inland Rail project will feature prominently in the Inquiry into National Freight and Supply Chain Priorities, which is now under way, and from which the National Freight and Supply Chain Strategy will be developed.
“The ALC considers that a port-to-port rail freight link from Melbourne to Brisbane should form the backbone of this Strategy,” he said. “As well as the obvious benefits to the ports in those two cities, there are substantial economic benefits to be realised in key regional centres along the route.
“With the nation’s freight task set to grow by 26% over the next decade according to the National Transport Commission’s Who Moves What Where report, it’s essential that freight operators have access to a supply chain that is both safe and efficient.
“Inland Rail will play a critical part in achieving that objective by allowing more efficient movement of freight, reducing congestion on our key road transport corridors, and creating employment opportunities in regional Victoria, NSW and Queensland.”

New CEO appointed for DP World–owned logistics firm

AWH Pty Ltd, the joint venture company owned by DP World Australia and Landmark, appointed Michael Jones as its new CEO on Wednesday, 19 April.
Warehousing and logistics company AWH is the largest export packer for wool and cotton in Australia and operates over 700,000 sqm of warehousing across 14 sites Australia-wide.
Jones brings extensive agribusiness, aviation and sport industry experience to his role at AWH, having led a number of organisations as CEO including ACT Brumbies Rugby Ltd, Rex Airlines Ltd, Sundown Pastoral Company Pty Ltd and Riverina Pastoral Company Ltd.
Brian Gillespie, Chairman, AWH Board said, “The AWH Board is delighted to have secured a new leader of the calibre of Michael and believe that his experience and ability is essential to drive the future development of AWH.

Amazon planning ‘thousands of new jobs’ in Australia move

Amazon has broken its silence over an impending move to Australian shores, which is expected to shake up competition among domestic retailers.

The e-commerce giant has confirmed it is searching for a “large distribution and fulfilment centre” in Australia with the introduction of services including Amazon MarketPlace, Amazon Prime Now, Amazon Pantry and Amazon Fresh on the cards.

“Amazon Web Services launched an Australian region in 2012, we launched a Kindle Store on in 2013, and we now have almost 1,000 employees in the country,” Amazon said.

A recently added banner of Amazon's domain.
A recently added banner of Amazon’s domain.

“The next step is to bring a retail offering to Australia, and we are making those plans now.

“We are excited to bring thousands of new jobs to Australia, millions of dollars in additional investment, and to empower small Australian businesses through Amazon Marketplace.”

According to a report in the AFR, more than 1,000 Australian companies already sell their wares on Marketplace, which “gives them access to customers in Australia and overseas.”

“We are optimistic that by focusing on the things we believe customers value most – low prices, vast selection, and fast delivery – over time we’ll earn the business of Australian customers,” Amazon’s statement added.

A former worker for Amazon previously confirmed that the company’s rumoured Australia ambitions were well founded, though this is the first time the e-commerce giant has acknowledged the plans.

New facility commissioned for Port of Brisbane logistics estate

Pulp and paper manufacturer Stora Enso has pre-committed to a 5,950m2 purpose-built warehouse facility within the Port of Brisbane’s Port West logistics estate at Lytton, Brisbane.
Port of Brisbane Pty Ltd (PBPL), CEO Roy Cummins welcomed Stora Enso to the estate and confirmed construction would commence on the on the 1.8 hectare site within a fortnight.
“The Port West location – particularly its proximity to the Port of Brisbane’s container terminals and wharves – will enable Stora Enso to significantly reduce its transport logistics costs,” said Cummins.
Stora Enso’s Managing Director Matthew Wood said, “The decision to select the Port West site was principally made due to the location’s proximity to the port and the associated logistics benefits, which will significantly reduce the cost of our freight movements.”
Construction of the new facility is being undertaken by FKG on behalf of PBPL (owner and developer), with occupation prior to the end of 2017. The site will be designed for the import, storage and distribution of timber products and will include over 8,000m2 of hardstand.
Port West Estate is located 6km from the Port of Brisbane and 5km from the Gateway arterial network.

Linfox wins logistics management award

Transport giant Linfox has been awarded the 2017 SMART Award for Excellence in Transport & Logistics for its FOXLink subcontractor management system.
The award was presented as part of the SMART supply chain and logistics conference held in Sydney.
According to Linfox, its new FOXLink online subcontractor management system enables compliance with mandatory and customer-specific safety accreditation and training requirements for drivers.
“FOXLink has helped reduce internal administration costs by reducing processing time and providing a direct channel of communication with subcontractor. It has also helped improve road safety by ensuring that our subcontractor drivers meet our industry leading standards of driver training,” the company said.
According to Linfox, the system is currently being used by 150 site managers, 50 corporate users and over 1,000 external users and has significantly reduced administrative and legal processing time.

Samsung, Packsize receive Australian supply chain excellence award

Packsize International together with its customer Samsung Electronics Australia received the ‘Excellence in Manufacturing Supply Chains’ award during the recent Smart Conference and Expo 2017 event.
Industry judges awarded the On Demand Packaging implementation at Samsung Australia’s Spare Parts and Logistics distribution centre in Sydney. In partnership with DB Schenker, Samsung Australia used Packsize’s custom packaging solution to streamline processes and optimise delivery services. Among the results achieved were production, inventory management, and stock control improvements, less corrugated fiberboard and void fill and reductions in product damage and freight costs.
Within three months of implementing the service, Samsung reported an approximately 50 per cent reduction in concealed damage and a 10 to 15 per cent reduction in the cubic volume of items shipped.
“Stock-takes that required three days can now be done in three hours,” said Samsung Australia’s Spare Parts and Logistics Manager David Ungar. “Packsize is a collaborative and enthusiastic partner, willing to share their experience and knowledge to deliver benefits, and is committed to a long-term relationship.”
“As packaging’s role in the value chain expands, so will our ability to support new operating models, improve logistics, create even greater customer satisfaction, and deliver smarter packaging design,” said Sean Ledbury, General Manager, Packsize International’s Asia-Pacific subsidiary, Packsize Propriety Limited.

New $440 million logistics hub opens in VIC

On Tuesday 11 April Wade Noonan, Minister for Industry and Employment, officially opened Drystone Estate – a 95-hectare industrial precinct that supports the likes of Target, Woolworths, The Reject Shop, Laverton Cold Storage, Rand Transport and Couriers Please.
The site is located 20km from Melbourne’s CBD, and sits close to the Western Ring Road, the West Gate Freeway and the Princes Highway.
The Victorian supply chain and logistics sector is worth $21 billion to the state’s economy each year – or seven per cent of the state’s Gross State Product – and employs 260,000 people state wide. The industrial estate is expected to create jobs for 1,200 people.
“Melbourne is the city of choice for major logistics and supply chain companies to do business,” said Noonan.
“This massive precinct will accommodate some of the biggest names in retail, and create more than a thousand jobs – which is great news for the city’s west.”

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