The leading international express service provider is a top employer in Asia Pacific for the sixth consecutive year.
The CEO Asia Pacific for Panalpina has moved to Hellmann Worldwide Logistics to take over the position as Regional CEO Asia Pacific.
Kuehne + Nagel is focusing on future growth in Asia-Pacific for the years to come.
Tigers has been selected as the local logistics partner to support the launch of Asendia Oceania and provide a regional footprint for B2C and omnichannel fulfilment solutions in Australia.
Hong Kong-based Tigers has an extensive warehousing network across Australia in Perth, Adelaide, Melbourne, and Sydney, with a focus on B2C vertical markets. Read more
According to a new market research report the autonomous ships market is estimated to be AUD 8.4 billion in 2018 and is projected to reach AUD 19.1 billion by 2023, with Asia Pacific showing the highest potential for implementation of autonomous ships.
The report finds that this market is driven by factors such as the increasing world trade by sea, increasing maritime navigation, increasing demand for automation systems for safety, and growing maritime tourism.
The fully autonomous segment to grow at a higher CAGR in the autonomous ships market, among all autonomy level during the forecast period
Based on autonomy, the fully autonomous segment is estimated to lead the autonomous ships market during the forecast period. The increasing demand for autonomous ships owing to rising human error-related accidents and increased operational expenditure is expected to drive the market for the full autonomy segment.
Increase in the demand for commercial vessels is expected to drive the line fit segment in the autonomous ships market
Based on end use, the line fit segment of the autonomous ships market is projected to have the highest CAGR in 2018, as a result of the increase in demand for automation systems from ship operators. As the demand for commercial ships is expected to increase in the future, the line fit segment is expected to grow.
Asia Pacific is estimated to lead the autonomous ships market in 2018. Asia Pacific has witnessed rapid economic development over the years, resulting in an increase in maritime trade. This rise in sea trade has subsequently led to an increasing demand for ships for the transportation of manufactured goods worldwide. Thus, the rising number of ships has increased the demand for autonomous ships in the Asia Pacific region.
The major players in the autonomous ships market include Wartsila (Finland), Kongsberg Gruppen (Norway), Northrop Grumman (US), Rolls-Royce (UK), General Electric (US), ABB (Switzerland), and Honeywell International (US), among others. Rolls-Royce and Kongsberg Gruppen are key market players engaged in contracts and acquisitions to increase the sale of automation systems and autonomous ships for different applications.
The Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have announced that Robbert van Trooijen, Senior Vice President and CEO – Asia Pacific of Maersk Line, will speak at the Global Shippers Forum and the International Cargo Handling Coordination Association (ICHCA) International Conference & Exhibition, held alongside MEGATRANS2018 this May in Melbourne.
Based in Hong Kong, van Trooijen is responsible for Maersk Line’s activities in the Asia-Pacific region, comprising Greater China, Northeast Asia, Southeast Asia and Oceania.
“In a period of significant change and consolidation for shipping lines, Robbert will be providing a shipping line outlook for 2018 and beyond, as a global executive from the world’s largest container shipping line,” the FTA and APSA said in a joint statement.
“This will be a must see presentation for freight forwarders, shipping lines, shippers, government stakeholders and businesses involved in the movement of goods across international borders.”
Find out more about the Global Shippers Forum and International Cargo Handling Coordination Association (ICHCA) International Conference & Exhibition, and MEGATRANS2018.
The Port of Melbourne.
Australia, Singapore and China are driving momentum and interest for infrastructure investment in the Asia-Pacific, according to the CMS Infrastructure Index: A New Direction. Four of the top 20 spots for investment attractiveness were secured by Asia-Pacific countries, with robust economic growth across the region, ambitious renewables plans, and the world’s largest infrastructure project – China’s Belt & Road – set to reshape the continent’s landscape over the next decade.
Globally the Netherlands claimed top spot overall, despite a prolonged period with no government at all, after seeing the highest GDP growth since 2007, expected to reach 3.3% in 2017. The country’s success was in part down to its transparent and efficient procurement process, and its healthy multi-billion euro pipeline in road and water Public-Private-Partnerships (PPP). Other countries in the top five included Canada, Germany, UK and Australia
China’s Belt and Road initiative continues to deliver on the promised infrastructure boom in Asia. Given the longevity of this project, changes in the balance of infrastructure investment in the region are likely to be profound. Though ranked at 20th position in the index, China is primed to become a global engine of investment, with close to a trillion dollars expected to flow through the initiative by its completion, while highly ranked countries such as Australia and Singapore continue to benefit from stable and prosperous economies. Australia’s federal target of 33,000GWh generated from renewable sources by 2020 has led to vast investment in solar and wind projects, and Singapore’s multi-billion-dollar development of Changi Airport’s Terminal 5 and the Tuas shipping megaport will solidify its position as a premier transport and trade hub globally. Further afield, opportunities in the likes of Malaysia and India are plenty – with renewable energy set to play a central role in future projects.
Adrian Wong, partner at CMS Singapore said: “The Asia-Pacific region is home to some of the world’s fastest growing economies and most ambitious infrastructure projects, and the spread of four countries within the index top 20 reflects an ever developing opportunity for investment. While key success factors like government stability and political certainty cannot be ignored, the potential impact of the Belt and Road Initiative alone promises to stimulate economic growth through the continent and far beyond.”
Partner at CMS Hong Kong Dr Nicolas Wiegand said: “The risks of adverse government interference that are typically associated with investing in the Belt & Road jurisdictions are mitigated through an extensive and ever-expanding network of Asia’s investment treaties and free trade agreements with integrated investment chapters. In addition to investment treaties, political risk insurance industry in the Asia-Pacific region has developed sophisticated insurance policies for insuring foreign investment in volatile Asian jurisdictions. As with previous years, investor-state arbitration remains an efficient tool to protect foreign investments in Asia, with Chinese companies becoming increasingly frequent users of investor-State dispute settlement mechanism.”
Europe bounces back
European countries have bounced back after a period of stagnation. Quantitative easing, the Juncker Plan and EIB support have all contributed to accelerated levels of EU infrastructure spending in recent years, and with economies such as Czech Republic and Romania experiencing significant expansion, there is room for optimism for future investment.
Europe as a whole has experienced an upsurge in infrastructure investment, as many politicians have been willing to use infrastructure investment as an economic stimulant. As well as the Netherlands and the UK, Germany, Norway and France ranked highly in the study, particularly for innovation. In Germany, all dominant parties have placed their support behind PPPs, and it is expected that deal flow, particularly in large-scale transport PPPs, will stay the course.
UK not fulfilling potential
Maybe unsurprisingly, the UK struggled to hold on to the top spot it gained in a study conducted by law firm Nabarro in 2015. The impact of Brexit and general political instability is already starting to have an impact on infrastructure investments, as investors struggle with a lack of certainty in the country. Those operating across the sector are clearly looking for commitment and long-term policy from government to allay fears. The report highlights in particular the lack of consensus over infrastructure megaprojects such as a third Heathrow runway and HS2.
Canada rules the Americas
In the Americas, Canada leads the way whilst a lack of detail on Trump’s proposed USD 1 trillion US infrastructure project leaves the US lagging behind in 7th position. Notably, the Canadian government is to launch the Canadian Infrastructure Bank in 2017, providing a boost to the already reliable infrastructure market.
From oil to renewables
In other regions, MENA has succeeded in looking at alternatives to combat ongoing low oil prices. UAE and Saudi Arabia have shown a keen interest in renewables. UAE have already played a pioneering role in exploiting their high levels of solar irradiation, while Saudi Arabia’s recent commitment to clean energy is hailed as a game changer for the regional pipeline.
Traditional versus alternative investment
The report also highlights potential new emerging asset classes including 4G, charging stations, car parks and the likely impact technology, which is already revolutionising infrastructure. One example is the rise of smart roads and smart cities, thanks to the interaction of road sensors, fibre optic networks, interconnected self-driving vehicles and inductive charging roads, laying the foundations for a new generation of self-charging and self-driving electric vehicles. Cities like Dubai and Singapore are already making strides to lead the next wave of digital innovation.
E-commerce and continued outsourcing is fuelling global third-party logistics market growth, driving 3pl revenues to over $1.1 trillion by 2022.
Armstrong & Associates has developed global logistics cost and third-party logistics (3PL) revenue estimates with projections through fiscal year 2022. The global 3PL market estimates cover seven major regions comprising 190 countries.
In 2016, the global third-party logistics market reached $802 billion and is on track to exceed $1.1 trillion in 2022. Global logistics costs were $8.2 trillion in 2016 and should surpass $11.1 trillion in 2022. Overall, the Asia Pacific region is the largest logistics market, accounting for 39% of total global logistics costs and 38% of total global 3PL revenues.
Globally, modern industrially developed and post-industrial countries have the lowest relative logistics costs as a percent of GDP. For example, in 2016, North America’s logistics cost as a percent of GDP was 8.6% and Europe’s was 9.5%. Asia Pacific’s estimate was 12.7% and South America’s was 12.0%. This is a function of logistics (road/rail/port) infrastructure, the lifecycle deployment of leading logistics practices, and influence of ongoing process improvements including eliminating unnecessary governmental, bureaucratic obstacles.
For a single country, Greater China’s logistics cost (including Hong Kong, Taiwan, and Macao) is the highest in the world at $1.7 trillion and equivalent to more than half of the Asia Pacific region’s logistics cost. (In comparison, US logistics cost is $1.5 trillion.)
In addition to global 3PL revenue and logistics spending estimates covering years 2010-2022, A&A’s Global and Regional Infrastructure, Logistics Costs, and Third-Party Logistics Market Trends and Analysis also covers infrastructure’s role with a focus on Brazil, India and China; Fortune 500 Global 3PL revenues and growth by industry; e-commerce logistics costs, 3PL revenues and growth rates; 3PL market segment revenues by country and region; and logistics spending by country and region and by mode and function. Global ‘Top 3PL’ lists are also included.
The complete report, complimentary for a limited time, and other A&A market research can be found here.
Analysts from Research and Markets have announced in their latest report on industrial automation that the global industrial automation services market was worth US$35.2 billion ($44.5 billion) in 2016 and is estimated to reach US$64.5 billion ($80.6 billion) by 2022, growing at a compound annual growth rate (CAGR) of 10.6 per cent for the forecasted period.
Industrial automation involves automation of manufacturing, quality control and material handling processes, with control systems, information technologies and robots used to handle different processes in an industry. Various types of industrial automation include fixed or hard automation, programmable automation and flexible or soft automation. Project engineering and installation holds major share in this market. Advantages of industrial automation include increased productivity, improved product quality, reduced routine checks and improved operational efficiency.
According to the report, the US is currently at the head of the industrial automation market, followed by Europe. Asia Pacific (which includes Australia) is expected to be the fastest growing region in this industry. The reports says during 2015–16, US companies exported nearly US$10.5 billion worth of products to foreign markets.
Some of the key growth factors of this industry are the need for operational efficiency, rapidly growing SMEs, a growing inclination towards Internet of Things (IoT) and cloud-based automation, the growing demand for smart factories, mass customisation, supply chain synchronisation, integration of systems and increasing R&D and innovation in artificial intelligence and advancement in the M2M communication technology. High installation and maintenance costs and lack of trained professions are some of the constraints in this industry.
Major companies in this industry include Honeywell International, General Electric Company, Mitsubishi Electric, Rockwell Automation, Johnson Controls, ABB, Samsung Electronics, Siemens AG and Schneider Electric. The report also pointed out that most of the regional and local vendors are vertically integrated. International players can grow by acquiring regional or local players.
Sydney-based logistics and shipping business Shippit has rejected a $5 million investment offer in its Series A funding round, instead accepting $2.2 million to fund in order to drive its growth and Asia-Pacific expansion.
250,000 parcels are delivered via Shippit’s platform each month, and many of the company’s 750 clients are major retailers, including Harvey Norman, Sephora, Topshop, Thankyou and Pet Circle.
Shippit’s Series A funding round attracted strong investor interest due in part to the company’s announcement of significant growth of its subscriber base and a 200 per cent increase in monthly profits.
“During the raising process, Shippit’s user base grew ahead of our projections which reduced our capital requirement and prompted us to review our growth ambitions,” said co-CEO Rob Hango-Zada.
Hango-Zada and his co-CEO William On decided to reject the $5 million investment secured through the funding round, having calculated that the growth push would cost around $2 million.
“We’ve always been fiscally responsible, however when we reconsidered the amount that was required to fuel our next phase of growth, the figure was actually much closer to [$2.2 million],” Hango-Zada added.
“We received a humbling flurry of interest, however, we didn’t think it would be wise to accept more capital than we actually required. The purpose of this raise was specifically to obtain growth capital to invest in strategic hires, building out the local team, as well as supporting rapid expansion into international markets.”
Lead investor Aura Group, a well-established venture fund, has experience dealing in the APAC market, which will benefit Shippit as it makes its bid for the market.
“Shippit stood out to us because of the scalability of its platform and its alignment to the global opportunity being driven by the transition of retail into e-commerce,” said Eric Chan, Managing Director, Aura Group.
“The predominant reason we invested, however, was because we believe Shippit has the right founders to execute on a well-considered strategy and vision.”