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Kühne + Nagel World Nr. 1/2006Kühne+Nagel World 1_2006

South AmericaA challenging environment

In Hamburg’s “HafenCity”New German head office

worldM A G A Z I N E NO . 2 / 0 7

2 Contents

Kuehne + Nagel World No. 2/2007

Contents

Imprint

Published byKuehne + Nagel International AGP.O. Box 67, CH-8834 SchindellegiTel. +41 (0)44 786 95 15Fax +41 (0)44 786 96 90E-mail: [email protected]

Design/layoutCROME Communications AGCH-4051 Basel

PrintWilhelm ZertaniDruckerei und VerlagD-28001 Bremen

FrequencyTwo times a year

LanguageEnglish and German

Print run30,000

4 FocusThe South American organisation

12 Markets & ProductsStrengthening its market position

14 Expanding the partnership with HyundaiHeavy Industries

16 High-end hotel logistics

18 A sonorous cargo

20 All-inclusive price information via the internet

21 In action round the clock for the Läpple Group

22 In Hamburg’s “HafenCity”

24 Perfect planning does the trick

26 “We see an enormous customer interest”

28 Kuehne Foundation30 million euros for science and research

30 Round the World

34 People & News

3Editorial


DearReaders

All over the South American continent, which is the focus of this issue, the economy

is growing strongly. Due to the more and more global and complex nature of source

and sales markets, companies are increasingly in need of a logistics partner with

international know-how and network coverage.

Kuehne + Nagel, a global player with strong roots in South America, has successfully

positioned itself as a market leader in sea- and airfreight in most countries in the region.

In Brazil it has the pole position among international logistics providers – and a strong

basis for its future development, for this country is regarded as the motor of South Amer-

ica. To keep our place among the top players in the long term, we are now in addition

concentrating more upon the fast-growing intra-Latin American market – about which

you can read more in this edition.

Further highlights of the new World Magazine are a report on the opening of

the new German headquarters in Hamburg’s HafenCity and a large donation of

30 million euros from the Kuehne Foundation for the Kühne School of Logistics and

Management. Many awards from all over the world show that our company is on the

right track.

Have an enjoyable read!

Viel Spaß dabei!

Your Klaus Herms

Chief Executive Officer

We shall be pleased to receive your comments on this magazine.

Just send an e-mail to [email protected].

South America’s economy is growing – and the Kuehne + Nagel organisation in the region isgrowing with it. For comparison: in 2001, the network covered 9 countries with 36 offices and a staff of 750. It now spans 48 offices, and the number of staff has doubled to 1,503.


The South AmeriArgentinaLocations: 7

Employees: 207

Warehouse space: 8,800 sqm

ColombiaLocations: 6

Employees: 193


BoliviaLocations: 1

Employees: 11

Warehouse space: 200 sqm

PeruLocations: 3

Employees: 102

Warehouse space: –

BrazilLocations: 19

Employees: 724


UruguayLocations: 1

Employees: 17


Customers include both South American firms and big multinational corporations, and activitiesfocus upon the automobile, pharmaceutical, high-tech, industrial and consumer goods sectors.There is also great potential in the fields of agricultural and raw materials production.


can organisationChileLocations: 2

Employees: 58


VenezuelaLocations: 7

Employees: 167


EcuadorLocations: 2

Employees: 24


South America(Argentina, Bolivia, Brazil, Chile,

Ecuador, Colombia, Peru, Uruguay,

Venezuela)

Locations: 48

Employees: 1,503


6 Focus


6

Bob Mihok

How would you characterise the

region today?

In the last four years the whole South

American continent has recorded a sub-

stantial rate of economic growth which

has been particularly outstanding in

individual countries like Brazil. With the

exception of Asia, gross domestic prod-

uct is growing nowhere as fast as in

South America. This dynamic develop-

ment creates a huge potential for logis-

tics, for the greater purchasing power of

the population is associated with a rise

in demand for consumer products which

boosts the flow of goods. In addition to

the traditional import markets of the

USA and Europe, business from the Far

East is expanding and there is a growing

need for national and regional logistics

and distribution solutions.

How are the needs of customers

changing in this up-and-coming

market? What does this mean for

you and your staff?

In view of the ever closer intermeshing

of source and sales markets, companies

– South American firms equally as big

multinational corporations that operate

production plants here – need the inter-

national know-how and network cover-

age of a global logistics partner; above

all, one that understands the complexity

of the South American market. We are

able to convince our customers and gain

their confidence as a result of our firm

establishment in the region and our glo-

bally standardised IT and logistics infor-

mation platforms, as well as the high

quality consciousness and outstanding

expertise of our employees. To ensure

that things stay that way, we constantly

invest in the training and further devel-

opment of our staff.

You are addressing the future. What

are your strategic objectives?

In most countries, in the past years we

have successfully positioned ourselves

as a market leader in sea- and airfreight.

We are also well placed in the customs

sector. In Argentina and Colombia we

have gained a foothold in contract logis-

tics, but we still have a great deal to do

in this field. The expansion of the

contract logistics business is undoubted-

ly our main objective for the coming

years. Our newly appointed regional

logistics manager is strongly committed

to strengthening this important pillar for

the provision of integrated services in

South America.

Does Brazil play a special role as

one of the BRIC countries?

Most certainly. 50 per cent of South

America’s population lives in Brazil, and

it also generates 50 per cent of the

region’s GDP. The country is the motor of

South America. Major multinational cor-

porations have production plants there,

and we support many of them with com-

plex logistics solutions. We are already

the market leader in Brazil, and there we

also operate the biggest warehouse of

our South American organisation with

A challenging environment

Mr Mihok, as Regional Manager

you have been responsible for the

activities of Kuehne + Nagel in

South America for six years. How

has the organisation changed

during this time?

Its development can be most strikingly

expressed in terms of figures. In 2001,

when I was promoted from regional

head of seafreight to Regional Manager

for South America, our network covered

9 countries with 36 offices and a staff

of 750. We have now expanded our

operations to 48 offices – while the

number of staff has doubled.

South America

Bob Mihok, Regional Manager South America, on the opportunities and characteristics of a dynamically expanding region.

7Focus


an area of 27,000 sqm for Scania.

Additional facilities will follow shortly.

Kuehne + Nagel on course for expan-

sion all over the world. In this connec-

tion cross-selling is an important factor.

In the past years we have done a lot to

adapt our regional sales organisation to

our group-wide Strategic Customer Devel–

opment Programme. In South America

one third of our client base has now

been recruited through our intensive

cross-selling efforts. In other words they

have been convinced of our abilities and

gained as customers as a result of exis-

ting business relations elsewhere and

also through our know-how in logistics

and specific industries. We are also con-

stantly developing our industry-specific

offering, focusing upon the automobile,

pharmaceutical, high-tech, industrial and

consumer goods sectors.

How do your staff manage the ever

more complex logistics business?

South America is a challenging environ-

ment for logistics providers. The import

and export regulations are complicated,

the transit routes are long and often

pass through very remote areas, and we

are faced with difficult infrastructure

and safety conditions. It is important

always to adapt to the needs of the

customer and to offer a high-quality

service throughout. We as the manage-

ment can support this by encouraging

our employees to think and act in an

entrepreneurial and proactive manner.

What else can customers expect

from Kuehne + Nagel South America?

How do you see the future?

South America also offers potential for

us in the fields of agricultural and raw

materials production. Our targets addi-

tionally include the development of

activities in these niche markets, and in

particular the strengthening of our

involvement in the fields of project

logistics, oil and energy logistics and the

transport of perishable goods. And

finally the expansion of our overland

transport activities in a market that is still

largely dominated by local providers.

The regional management team: (from left) Peter Franckenberg (Airfreight), Bob Mihok (Seafreight/Regional Manager), Michael Jacob (Sales),Stefan Rothlin (Finance), Hubert Loyer (Contract Logistics), Eduardo Chiacchiarini (IT), Ricardo Grübler (Regional Key Account Manager). Missing: Pablo Paissanidis (HR).


Brazil

Kuehne + Nagel in Brazil

Brazil has a population of 190 million,

the fifth largest in the world. 50 per cent

of its people are less than 30 years old,

its gross domestic product amounts to

more than 1,000 billion US dollars, and

its economy is expected to grow by five

per cent in 2007. These figures are

enough to show the potential of the

world’s tenth biggest economic power, in

terms of both productivity and the mar-

ket for consumer goods. Kuehne + Nagel

opened its first forwarding offices in this

country as long ago as 1962. It now has

a network that comprises 19 locations

and employs a staff of 724.

Kuehne + Nagel has been seen for many

years as the clear market leader among

the international logistics players repre-

sented in Brazil. This puts the company

in a good position, for it is not only for

Brazil’s oil, gas and mineral wealth that

the country is regarded as the “motor of

South America”, it also has significant

potential with regard to both imports

and exports. In order to secure a strong

position for the long term, Kuehne +

Nagel is increasing its focus on the fast-

growing intra-Latin American market.

The company also recognises the huge

opportunities in the field of contract

logistics: more and more companies are

outsourcing these services to third party

providers. Cross-selling also occupies a

prominent position.

Overland transport, with a current vol-

ume of more than 30 billion US dollars,

additionally presents scope for expan-

sion. This market is now dominated

mainly by Brazilian firms. Kuehne +

Nagel has established a small team

which is analysing the special features

of the market in order to develop a prod-

uct that conforms to the needs of the

customer. The first successes show that

it is on the right track. One of Kuehne +

Nagel’s most important customers in

Brazil is the commercial vehicle maker

Scania. An outline of the business part-

nership is given on the following pages.

Motor of South America offers great logistics potential – Kuehne + Nagel clear market leader.

9Focus


9

Scania Latin America specialises in

producing trucks and buses for Brazil

and the global export market. While

expanding its production in the Brazilian

factory, the company took the opportu-

nity to reorganise its complete logistics

process. Its objective was to reduce

inventories, shorten lead times and

save costs.

The task Scania gave to the logistics

provider was this: To consolidate the

goods from previously six in-plant ware-

houses at an external location, and effect

continuous “factory feeding”. The factory

had to be supplied just-in-time within

defined time windows, only minimal

buffer stocks being held at the works.

The warehouse which Kuehne + Nagel

operates exclusively for Scania is only six

kilometres from the factory. It is located

in São Bernardo do Campo and has an

area of 27,000 sqm. 5,000 pallets are

handled there every day. The operations

performed by Kuehne + Nagel round

the clock include incoming inspections,

repacking (20 per cent of all incoming

pallets are repacked), warehousing, order

picking (6,000 stock keeping units) and

The warehouse operated exclusively for Scania in São Bernardo do Campo.

5,000 pallets are handled every day.

Scania: production of trucks tripled since 2002.


Brazil

the effecting of roughly 50 transports

per day. This outsourcing and the facto-

ry feeding concept have been beneficial

in the expansion of Scania’s production.

For comparison: Scania has tripled its

production of trucks since 2002.

Scania is convinced of the advantages

of this cooperation, which brings higher

cost efficiency in logistics, reduced

inventories and an inventory accuracy

of nearly 100 per cent. Of further bene-

fit are shorter lead times from suppliers

in Europe to the production line in the

supplier in Europe to the feeding

of the production line is IT-supported.

Scania expressed its satisfaction with

the partnership at the end of 2004, by

awarding the prize “Scania’s Global

Preferred Supplier” to Kuehne + Nagel.

Scania factory. For a considerable time,

Kuehne + Nagel has already managed

the complete inbound seafreight proces-

ses for the factory in Brazil. The goods

coming from Europe are consolidated in

the Belgian port of Antwerp, from

where they are shipped to South Amer-

ica. Today, the whole chain from the

Every day roughly 50 transports are effected.

11


Focus

Growing wine business inArgentina and Chile

With its ideal climate, the region around

Mendoza (roughly 1,100 kilometres to

the west of Buenos Aires) is the main

pillar of Argentina’s wine production. It

is the national hub of the whole indus-

try, and the specialised department of

Kuehne + Nagel which is based there is

responsible for all the country’s wine-

growing regions. Exports go mainly to

the UK, Canada, Denmark, Hong Kong,

Norway and Switzerland.

Part of the Kuehne + Nagel staff origi-

nates from the wine industry and contrib-

utes the essential knowledge of the product,

while the other part brings the necessary

logistics expertise. The know-how of the

workforce is constantly strengthened with

regular training courses on subjects such

as the different customs regulations in

each country along the transport chain, or

the characteristics of the various grapes

and wines. Customers know the value of

this investment in human resources, for the

office in Mendoza, which was opened in

December 2002, occupies an important

place in the beverage logistics network

and reports new successes every year.

Synergies

Chile’s Central Valley with its high

concentration of grape vines is only loca-

ted around 100 kilometres from Mendoza,

so advantage can be taken of synergies

between the locations. The national

beverage logistics department in San-

tiago de Chile was also opened in 2002.

The main customers for the wines from

this area are the UK, Germany, the

Netherlands and Denmark.

In Chile the rate of growth is truly

impressive: In 2003 Kuehne + Nagel

transported 300 20-foot containers of

wine, while this year it expects to pass

the 7,000 mark. In future, Kuehne +

Nagel intends to step up its services to

the markets in North America and Asia,

particularly China.

In Argentina and Chile the beverage

logistics product portfolio comprises all

sea, air and road services including pre-

carriage to the port of shipment, ware-

housing and distribution. Depending on

destination and cost constraints, the

wine is shipped via Buenos Aires or the

Chilean ports of Valparaiso and San

Antonio. The offices have state-of-the-art

IT systems which enable customers to

take advantage of Kuehne + Nagel’s

worldwide tracking and tracing system –

an offering that is greatly valued by

many wine producers.

After having opened its offices in Argen-

tina and Chile, the logistics group

strengthened its involvement at the

other end of the supply chain by the

acquisition in 2003 of the wine logistics

provider Seabrook & Smith in the United

Kingdom, one of the main importers of

South American wine. In 2006, through

the acquisition of the Ziegler Denmark

Group, Kuehne + Nagel gained addition-

al know-how in the bulk transport of

wine in steel tanks, flexibags or octo-

bins. This came at precisely the right

time, for there is a growing demand for

this type of transport even if much wine

still travels in bottles.

In the coming years Kuehne + Nagel has

plans to invest in other Latin American

countries: among those on the agenda

are Uruguay and Brazil.

The expanding markets present great opportunities for Kuehne + Nagel’s beverage logistics business.

The climate is ideal for wine production.


Strengthening its market positionNew logistics strategy of world’s second largest home furnishing retailer.

The Conforama company has entered

into a strategic partnership with Kuehne +

Nagel. The reason: The world’s second

largest retailer in the home furnishing

and home appliances field and the No. 1

in France is assigning supply chain

management a central role in its strat-

egy to strengthen its market position.

The centrepiece of the cooperation is the

new 65,000 sqm logistics centre in

Châtres to the southeast of Paris, which

began operations at the beginning of

2007 and is now running in top gear.

Designed in tight collaboration between

the two partners, the building is owned

by Conforama and operated by Kuehne +

Nagel. The logistics provider’s 150-strong

team in Châtres is entrusted with the

complete warehousing and order man-

agement process servicing Conforama

stores all over France. The range of arti-

cles handled includes everything from

home textiles to furniture and household

appliances, entertainment electronics,

PCs and decoration items. The logistics

centre is a cornerstone of Conforama’s

new logistics strategy in France, which is

based on a central hub in Châtres and

four regional distribution centres.

The reason for the structural reorga-

nisation

Let us take a brief look back to mid-2006,

when the partnership began. Conforama’s

aim was on the one hand to bring logistics

structures into line with industry develop-

ments, such as the globalisation of supply

processes, and on the other hand to adapt

them to the company’s strategy in France.

This strategy envisaged a further increase

in the density of the national branch net-

work with the greatest possible utilisation

of the sales area, calling for centralised

warehousing and an increase in the fre-

quency of deliveries to Conforama stores.

Hence the complete remodelling of its

supply chain organisation.

Conforama required the implementation

of the new logistics concept as quickly

Designed with Conforama, operated byKuehne + Nagel:

13Markets & Products


as possible, while at the same time main-

taining a constant level of reliability in

its logistics network. In order to achieve

this, Kuehne + Nagel brought a tempo-

rary solution into service before the com-

pletion of Châtres.

The Châtres distribution centre can

receive and manage up to 150 full truck

loads and containers per day. In addi-

tion to its operations here, Kuehne +

Nagel acts as a preferred partner for

Conforama, responsible for container

consolidation in Asia and transport by

barge from Antwerp, Belgium and Le

Havre, France to Conforama warehouses

in France and Switzerland.

A strong partner in pilot projects

Relying on its expertise in logistics engi-

neering and its experience in piloting

complex logistics projects for major

retailers, Kuehne + Nagel has been

assigned a pilot role for the implemen-

The new distribution centre in Châtres.

tation of new processes and systems

before they are extended to all

Conforama logistics centres in France

and in Europe. In Châtres Kuehne +

Nagel is currently supporting Conforama

in the deployment of its new Warehouse

and Transportation Management Systems

(WMS and TMS), including a voice

picking module.

Both companies are happy with the

partnership: Patrick Pépin, CEO for

Kuehne + Nagel South West Europe,

commented: “We are delighted to be so

closely involved with Conforama in such

a large project. It is the result of an

exceptionally fruitful partnership be-

tween our two companies.” Philippe

Blommaers, Supply Chain Director for

Conforama added: “We have selected

Kuehne + Nagel to accompany us in our

supply chain development. They have all

the necessary resources in terms of

organisation and human resources to

efficiently partner us in the optimisa-

tion of our warehouse management

operations.”

Inside the Châtres warehouse.

14 Markets & Products


14

The Korea-based company Hyundai

Heavy Industries, one of the world’s

leading shipbuilders, has appointed

Kuehne + Nagel as one of its strategic

logistics partners. The recently signed

agreement substantially strengthens the

business relations between the two

companies.

In addition to the comprehensive

seafreight services (FCL, LCL and break-

bulk) that Kuehne + Nagel previously

provided, the new contract also includes

airfreight. The range of services in this

field extends from the collection of

goods from the supplier to customs

clearance and document processing and

delivery in Korea. The aim of transport

management is to group together

cargoes of different origins so as to take

full advantage of consolidation poten-

tials, without losing sight of the often

short delivery times to the shipyards.

Under the agreement, Kuehne + Nagel

also handles cross-trade consignments

(shipments from a third country to

another).

At the end of 2006 Kuehne + Nagel

successfully carried out a special air

transport operation for Hyundai Heavy

Industries within a specified time frame.

The objects concerned were four shut-

down valves and motor-operated valves –

each of which weighed 30 tonnes.

These had to be collected from the

The new contract with Hyundai HeavyIndustries is sealed with a handshake.On the right is Erwin Wittemaier, NationalManager of Kuehne + Nagel in Korea.

Expanding the partnership withHyundai Heavy Industries An expression of confidence – new contract now also includes airfreight.

In addition to seafreight, Hyundai Heavy Industries now also relies on Kuehne + Nagel in the air. Above: a special air transport operation.

Markets & Products 15

In Australia all the signs point to growth. In March the new Kuehne + Nagel

logistics centre in Melbourne was opened by Theo Theophanous, Minister for

Industry and State Development in Victoria, and Executive Chairman Klaus-

Michael Kuehne.

The building is located on a 47,000 sqm plot and provides 20,000 sqm of ware-

house space which can later be extended to 30,000 sqm, as well as 23,000 pal-

let positions. The new facility is equipped with state-of-the-art IT systems and

RFID technology, hydraulic loading docks, and a vertical carousel system for easy

spare parts storage and picking.

“The new logistics terminal in Melbourne supports our growth strategy and repre-

sents a significant opportunity to underline our logistics excellence in Australia,”

said Klaus-Michael Kuehne at the inauguration ceremony.

Minister Theophanous described the in-

vestment as “a major milestone in our in-

vestment facilitation program for Victoria.

In addition to creating new jobs, it

underlines the significance of our state for

the strongly growing logistics industry.”

Melbourne is now Kuehne + Nagel’s

Australian headquarters and the location

of the national management and the

sales and contract logistics departments.

New logistics centrein Melbourne

manufacturer in Italy and transported to

Korea within ten days. The contract

package included project organisation,

collection from the manufacturer in

Castellanza/VA, overland transport to

Milan’s Malpensa Airport and transport

to Korea (Incheon Airport). Kuehne +

Nagel Korea coordinated this project in

close collaboration with the charter

department in Frankfurt and the Italian

airfreight department – teamwork that

convinced the customer.

Erwin Wittemaier, National Manager of

Kuehne + Nagel in Korea, is delighted at

the extension of the contract and the

strengthening of the business relations

between the two companies: “This agree-

ment is an expression of the confidence

that Hyundai Heavy Industries has in

our company, and underlines the advan-

tages offered to a leading shipbuilding

company by our integrated and industry-

specific logistics know-how and port-

folio.” Already in 2005, Hyundai Heavy

Industries entrusted Kuehne + Nagel

with parts of the inbound cargo

processes in seafreight transport, in

order to master the diverse logistics

challenges that face a heavy industrial

company.

The companies are also moving closer

together in the IT field. As a basis for

even more efficient cooperation, they

are currently working on an electronic

data interchange link between their

systems.

In Korea, Kuehne + Nagel has a total

of 115 employees at three locations:

Seoul, Pusan and Incheon.

Happy faces during the visit of Mr and Mrs Kuehne.


16


KN Hotel Logistics offers tailor-made supply chain management solutions all over the world.

High-end hotel logistics

Markets & Products

USA / West Yellowstone.

KN Hotel Logistics is in charge of the refitting of 112 rooms

of a luxury hotel and their turnkey handover to a new

operator in West Yellowstone, only 500 metres from the

entrance to the famous Yellowstone National Park. After

the existing furnishings have been removed and disposed

of, the new fittings are delivered to the remote building and

installed there.

16

What do a luxury hotel on an almost

uninhabited island in the Maldives and

a casino in China have in common?

Both were fitted out with the help of

KN Hotel Logistics, a special product

of Kuehne + Nagel. KN Hotel Logistics

offers services both in the run-up to the

opening of an establishment as well as

during its operation, and adapts flexi-

bly to the needs of the individual cus-

tomer – worldwide. Here are four

current examples.

Germany / Hanover.

One of the world’s leading hotel chains has entrusted KN Hotel Logistics

with supplying its hotels all over the world with cosmetic articles, bed and

bath textiles and daily consumption articles (serviettes, cocktail pickers

etc.). This is daily routine in the amenity distribution centre created in

Hanover for Europe-wide supplies: Orders received from more than a hun-

dred hotels via Kuehne + Nagel’s own online webshop are processed and

delivered right to the door within 24 to 72 hours – whether the hotel is

located at the northern tip of Africa, in Siberia, in Scandinavia or on the

Greek Islands.



China / Macau.

A recent project in China called for the smooth management of just-in-time deliveries. The world’s biggest casino with

more than 4,200 gaming machines and 120 gaming tables was opened in Macau. From the dice to one-armed bandits,

the KN Hotel Logistics team managed the complete transport chain for all goods – some of which were highly sensitive –

from their overseas sources to their delivery in the casino.

Maldives / Villingili Island.

Hundreds of containers and several thousand cubic metres of

break-bulk cargo with building materials, building machinery,

equipment and the complete hotel inventory need to be brought

to the construction site of a luxury hotel on the hitherto uninha-

bited island of Villingili in the Indian Ocean. To ensure the

smooth progress of the project, it is important to bring the mate-

rial punctually to the appropriate planning areas. A lack of

infrastructure to unload the cargo from the ships and the off-

shore coral reef make handling difficult and necessitate the use

of special landing craft.


Bell and pipe carillon of Meissen Porcelain® shipped to Japan.

Kuehne + Nagel handled the trans-

port to Japan of a bell and pipe

carillon of Meissen Porcelain®. This

instrument, the only one of its kind in

the world, was designed and built for a

big new shopping mall in Yokohama.

Experience and precision – the logistics

requirements of the organ builder Jehm-

lich Orgelbau Dresden GmbH certainly

called for both. For if one of the bells

and pipes alone had been damaged, it

would have been necessary to remake it,

involving a long and laborious process

and precisely adjusting every nuance of

its tuning.

In order to avoid all risk of jarring the

fragile freight in the handling of the

container, as could happen in a transit

A sonorous cargo

Valuable cargo: Meticulously dismantled and carefully packed, the carillon wastransported across the ocean.



Kuehne + Nagel Dresden ensured transport without a hitch: A unique bell and pipe carillon of Meissen Porcelain® is now the attraction in thenew shopping mall in Yokohama.

port, Kuehne + Nagel decided on the

direct shipment of the 20-foot container

in which Jehmlich had packed the

instrument.

The carillon left Bremerhaven for its

ocean voyage at the beginning of Jan-

uary aboard the world’s biggest con-

tainership, the “EMMA MAERSK”, and

arrived in Yokohama roughly four weeks

later. Since the authorities made an

exception in view of the special value of

the cargo, it was able to pass through

the port without the usual customs

inspection so that the container could be

brought directly to its final destination.

There, company head Ralf Jehmlich

personally supervised the unpacking and

assembly of the instrument. The 40 bells

and 49 pipes delighted customers for

the first time at the opening ceremony of

the Lalaport shopping mall.

An interesting note: Because 8 is regarded

as a lucky number in Asia, Kuehne + Nagel

supplied Jehmlich with a container seal

bearing the number ES 880888 to ensure

it would have luck on its side. “A nice

idea,” commented the organ manufac-

turer, who has been a satisfied customer

of Kuehne + Nagel Dresden since 1997.



All-inclusive price informationvia the internetNew service offers greatest possible certainty with regard to costs and planning.

In mid-2005, Kuehne + Nagel launched

its new airfreight product portfolio.

KNExpress, KNExpert and KNExtend

differ in their transit times, but all are

based on the Cargo 2000 quality

standard. A common feature of the three

products is that they provide immediate

all-inclusive price information via the

internet – a service so far unparalleled

in the market.

Jet Aviation Flugzeugwartung GmbH,

the German subsidiary of Jet Aviation,

founded 1967 in Switzerland and today

one of the world’s leading business

aviation services companies, has been

taking advantage of the new service

since 2007 for the import of aircraft

spares from original manufacturers in

the USA and Brazil. Harald Kroll, Direc-

tor, Material & Logistics at Jet Aviation,

is convinced by the new offering. “The

quotations that we make to our custom-

ers include items such as material,

labour, and, of course, transport costs.

The new Kuehne + Nagel airfreight

products at last enable us to make

reliable and transparent offers to our

customers, as they provide facts on the

logistics cost component and thus allow

us to substantially improve our service.”

Aside from this, online quotations save a

lot of time that would otherwise be

spent on the phone and waiting for call-

backs. The immediate availability of the

all-inclusive cost calculation also makes

life easier particularly in the case of

urgently needed spares.

The express service providers offer simi-

lar online price information, but as a

rule this is only for small packages. In

contrast, the internet service feature of

Kuehne + Nagel extends to shipment

weights of several tons and allows for a

wide range of transit times – the offer-

ing includes both express and “slower”

cost- and time-optimised consolidation

solutions.

How does the new feature work? Via the

Kuehne + Nagel homepage, customers

can obtain quotations for their air-

freight shipments by entering such

details as the place of collection and

delivery, the dimensions, and the

weight of the consignment. A firm price

offer then immediately appears. Only

the costs of security and fuel surcharges

are not included. For the customer this

system offers the greatest possible

certainty with regard to costs and

planning.

Via GetYourQuote on the Kuehne + Nagel homepage, customers can obtain quotations fortheir airfreight shipments by entering such details as the place of collection and delivery,the dimensions, and the weight of the consignment etc.



In action round the clockfor the Läpple Group

July 2007. At the request of the custo-

mer, however, a large part of the job had

to be completed within four weeks,

which kept Cargopack in action round

the clock.

Parts of the equipment had to be trans-

ported according to an agreed time

schedule from the Läpple production

plants in Ireland and South Africa as

well as from Germany. (Cargopack han-

dled the transport of subcontractors’

goods within Germany, and Kuehne +

Nagel the transport of goods from

subcontractors from other countries.)

Ranging from sensitive pressing tools to

welding robots, printed circuits and even

the works bicycles, the list included

The Läpple Group in Heilbronn/Ger-

many, together with LSP, its joint-venture

partner for the USA, obtained a contract

from a German car manufacturer to pro-

duce car body parts in South Carolina

for a new model that will be launched to

the North American market in 2008. The

transport of the complete production

line to the new factory near Union/SC

was handled by Kuehne + Nagel togeth-

er with Cargopack, a wholly-owned sub-

sidiary that specialises in providing a

worldwide packing service for industrial

goods.

The envisaged time frame for the project,

which involved the transport by sea, air

and land of 3,000 tonnes of freight in

150 containers, was originally January to

everything that is needed to operate a

production line for the manufacture of

outer skin parts, doors, tailgates and

roof panels.

Some of the expertly packed parts

weighed more than 30 tons. The

experts at Cargopack had even made

special load carriers to ensure the safe

transport from Germany of 250 pres-

sings per tool group – body parts and

prefabricated subassemblies – that had

been made there in case the new plant

was unable to start up on time.

It was also necessary to coordinate the

arrangements for customs clearance,

import formalities and unloading in the

USA in order to avoid unnecessary

waiting times and delays and not to

jeopardise the car manufacturer’s target

date for the start of production. For this

purpose a competence centre of the

Kuehne + Nagel branch was set up on

the spot and the smooth running of the

operation was monitored by staff

members who travelled from Germany

to South Carolina.

An essential factor for the success of the

project was the close coordination be-

tween Läpple, Cargopack and Kuehne +

Nagel in Gärtringen, Frankfurt, Bremen,

Dublin, Johannesburg and Greenville.

The production line at the factory in the USA – 3,000 tons of freight were moved.

Transport of a complete production line for the manufacture of car body parts to the USA.



In 2003 Kuehne + Nagel was one of the first companies to

decide to locate in the HafenCity urban development area,

where it procured a 4,400 sqm plot of municipal land. The

company’s overall investment in land and property amounts to

approximately 32 million euros. The new office building,

which boasts distinctive architecture, has a gross floor area of

13,000 sqm. The top floors of the building’s eleven-storey

tower house the executive offices and conference rooms and

offer impressive views across the River Elbe, the port, and

Hamburg’s city centre.

In Hamburg’s“HafenCity”Kuehne + Nagel’s new German head office.

The new reception area.



The new property accommodates roughly 600 employees that

were formerly spread across the city in various buildings: the

national head office, the corporate IT department, and the

Hamburg branch. Jan Störmer Partner, the architects, designed

a building characterised by a generous simplicity and a success-

ful dialogue of contrasts. Nearly every workspace offers views

across the Port of Hamburg – a port closely linked to the

company’s success.

“I’m very pleased that we now again have a prestigious office

building in Hamburg, my home town. The team of architects

has successfully conceived a building that combines an orig-

inal and sophisticated design with indisputably high function-

ality,” said Klaus-Michael Kuehne at the opening ceremony.

“Hamburg is one of the key locations within our global

network, which today comprises 830 locations in more than

100 countries with over 48,000 employees.”

Hamburg’s First Mayor, Ole von Beust, said at the ceremony,

“I am delighted that Kuehne + Nagel has decided to locate its

new German head office in HafenCity. The move sees one of

the globally leading logistics companies further strengthening

its ties with Hamburg.”

At the opening ceremony.

A view across Hamburg from the Skylounge on the eleventh floor.



Perfect planning does the trick

Billions of dollars are invested in the exploration of oil and

gas, as well as in infrastructure of production facilities. At Ras

Laffan (Qatar) in the Persian Gulf, one of the largest gas

producing industrial complexes is currently being built. This

venture also entails huge projects in consumer markets, and

Kuehne + Nagel is part of one such major undertaking in

Europe: the construction of a re-gasification plant near the

port of Venice, in Italy.

The natural gas explored offshore Qatar will be liquefied at

Ras Laffan and transported by special tanker vessels to Italy

where, some 25 kilometres off the coast at the Adriatic LNG

(Liquified Natural Gas) processing plant, the liquid product

will be re-gasified and fed into the national network. This

re-gasification plant is being built in a shipyard near Gibraltar

in Spain. Kuehne + Nagel’s special projects team is responsi-

ble for coordinating the worldwide supplies to Spain and

recently completed a major project: the transport of three

Power Ancillary Unit (PAU) modules built in Italy and con-

sisting of gas turbines and generators along with piping and

ventilation systems. Once operational, these will supply the

Adriatic LNG plant with power.

Each module weighed 350 tons and was 28 metres long,

11 metres wide and 18 metres high; dimensions which could

only be hauled over short distances on land, and no sea-

Kuehne + Nagel transports huge modules for the construction of an offshore liquid gas processing plant.

The three modules – each weighing 350 tons – were towed to Spain by an ocean going tug boat.



going heavy lift vessel could accommodate the three modu-

les on board with sufficient clearance and outreach of its

cranes. A tug and pontoon operation was the only viable

alternative for the transport to Spain. Together with the

client, Kuehne + Nagel’s projects team developed a detailed

operational plan, which was then subject to the assessment

of a team of risk specialists – everything from loading proces-

ses to hazard mitigation, emergency and contingency

planning to voyage schedules and shelter positions was

scrutinised.

A suitable pontoon was chartered in Rotterdam, equipped

with special supporting structures in order to securely accom-

modate the three modules, and multiple calculations were

made and approved by the client’s marine surveyors and

cargo insurers. An ocean going tug boat was engaged to tow

the barge. After a 12-day voyage the convoy reached the first

stage of its journey, Marina di Carrara in Italy, where the

barge was safely moored and prepared for the roll-on

operation.

The three modules covered the five kilometres from the yard to

the port on a self propelled modular trailer and were then

slowly manoeuvred from the quay over a ramp onto the barge.

A ballast pump system ensured the barge was kept in equilibri-

um during the whole process. The modules were placed on the

purpose-built steel structures and beams, and then securely

lashed, fastened and welded to the barge after the hydraulic

trailers had been lowered and released. Then, after having ob-

tained all required certification for a safe voyage, the convoy

left for Cadiz. En route, the tug and pontoon had to take

shelter for two days in a bay off the island of Mallorca and

wait for a storm to pass.

In good time before the convoy’s arrival at the port of Cadiz,

everything was prepared for a smooth offloading operation.

The three PAU modules were moved off the barge by means of

a 26-axle hydraulic trailer and delivered to the shipyard for

installation on the base structure of the Adriatic LNG gas pro-

cessing plant. The pontoon and tug were then delivered back

to Rotterdam and Stavanger, respectively, completing a total

voyage of 70 days.

Thanks to the minute planning and preparation of the

Kuehne + Nagel projects department, the operation was

executed to the full satisfaction of the client and the pride of

all parties involved.

The 5 kms from the yard were covered on special hydraulic trailers.

At the port, the modules were carefully manoeuvred overa ramp onto the barge.



Daily line-haul services between 38 countries: New European groupage network strengthens market position.

“We see an enormouscustomer interest”

On 1 March Kuehne + Nagel launched

its own European groupage network.

This links 38 countries across the

continent with daily line-haul services.

The initial developments are highly

favourable.

The new network is based on a central

hub in Haiger/Germany and seven

regional hubs in Barcelona/Spain,

Birmingham/UK, Milan/Italy, Malmö/

Sweden, Paris/France, Warsaw/Poland,

and Vienna/Austria. Daily services

linking these hubs, as well as between

the hubs and the 80 Kuehne + Nagel

offices connected to the network,

ensure coverage across 38 European

countries. Kuehne + Nagel is now able

to offer competitive transit times for

groupage cargo up to 2.5 tonnes,

covering an area from Portugal to

Estonia, and from Norway to Turkey.

The main trading nations in Central

Asia and North Africa are linked to the

network via gateways.

Positive first results

In a first assessment Lars Stefanowski,

Vice President Business Development,

Rail & Road Logistics, sees a favourable

development throughout: “The hubs,

terminals and traffics of the network are

operating very well and offer a high

performance; the efficiency of the

network has been confirmed under oper-

ational conditions.” But there is still a

lot to do, he says: “With the rapid

development of the groupage network

we are trying to equal in only a short

time what others have achieved in the

market over a period of 30 years. We are

in a very steep learning curve.”

This is how the new network operates:

Domestic collection and distribution is

managed by the respective Kuehne +

Nagel national companies, with the

exception of five countries, where

Kuehne + Nagel works with local market

leaders. All processes are supported by

standardised IT systems that ensure

high productivity levels and provide

customers with the whole spectrum of

Kuehne + Nagel logistics information

management tools from tracking and

tracing to sophisticated supply chain

management solutions via the internet.

The company’s overland experts also

support customers in their individual

logistics planning.

“In the overland sector we traditionally

have our strongest presence in Germany,

while we chalk up the highest volumes

1,000 guests celebrate“100 days of the groupage network”

Kuehne + Nagel Barcelona, one of seven hubs of the new

system, celebrated “100 days of the groupage network” on

the evening of 31 May with more than 1,000 guests. There

was praise from all sides for the well-organised event, which

aimed primarily at promoting customer loyalty and provided

an opportunity to present the services offered by the new

groupage network, as well as the new airfreight products of

Kuehne + Nagel.


between the major economic centres

in Germany, Belgium, Switzerland,

Austria, France and the United King-

dom,” says Stefanowski. The new

groupage network, he says, has also

brought a gratifying, broad-based

growth in the European overland busi-

ness. “Every country in the network is

now able to offer transport services to

all other networked countries. This has

enormously boosted customer interest.”

As examples he cites the Northeast

Europe and Southeast Europe regions,

where the number of export groupage

shipments has shown respective increa-

The diagram shows the groupage network as it exists today. The red cross marks the central hub at Haiger in Germany, while the red circlesshow the seven regional hubs in Barcelona, Birmingham, Milan, Malmö, Paris, Warsaw and Vienna. Daily services linking these hubs, as well asbetween the hubs and the 80 Kuehne + Nagel offices connected to the network, ensure coverage across 38 European countries.

ses of 33 per cent and 69 per cent

compared with 11 per cent in all other

countries. “Our advantages are our

own network, portfolio, efficient and

competitive cost structures, and uni-

form standards on all routes,” states

Stefanowski.

Medium-term objectives

“In important groupage markets such

as Italy or France there is still a big

market potential that we aim to

develop.” One fundamental idea in this

respect is to increase the number of

countries that put cargo volume into

the network and to optimise the

balance between imports and exports

throughout the system, Stefanowski

said. It is also planned to continuously

increase the number of direct connec-

tions and in particular their frequen-

cies. The first synergies with other

business units are also developing, he

said: For instance, in collaboration with

colleagues from seafreight, LCL services

from the Far East to Europe including

distribution through the new overland

groupage network are now being offered.


30 million euros forscience and researchKuehne Foundation makes large donation to the Kühne School of Logistics and Management.

The Kuehne Foundation is sponsoring the

establishment of the new Kühne School of

Logistics and Management (KSL) at the

Technical University of Hamburg-Harburg

(TUHH) with a total contribution of

30 million euros. This was announced by

Klaus-Michael Kuehne, Chairman of the

Board of Directors of the Kuehne + Nagel

Group and President of the Board of

Trustees of the Kuehne Foundation, at a

reception held by the senate of his home

city, Hamburg, on his 70th birthday on

2 July.

What is behind the Kühne School of Logis-

tics and Management? It is a university

institution, unique in its kind in Germany,

that will in future devote itself to research

and teaching on central issues of logistics

and management at graduate level. Since

it was founded in 2003 as a public-

private partnership between the Kuehne

Foundation, the TUHH and the Free and

Hanseatic City of Hamburg, the Hamburg

School of Logistics (HSL) has successfully

established itself as a provider of further

training for postgraduates and practical

logisticians and as a leading interna-

tional centre of excellence for applied

logistics research. Now, with the creation

of KSL, it will be substantially expanded

and undergo a further development of its

original concept. In addition, a Centre of

Advanced Studies in Logistics is to be

established. Academic staff of the TUHH

will join together in a team with young

logistics specialists in order to research

current issues in logistics, and will collab-

orate with companies in order to find

solutions.

Klaus-Michael Kuehne said at the signing

of the agreement: “Logistics is a multidis-

ciplinary function which now incorporates

virtually all kinds of economic activity

including the industrial, trading and ser-

vice sectors. It has substantially increased

its importance over the past few years

and is now a global growth industry with

one of the biggest potentials for expan-

sion. This is creating a steadily growing

demand for qualified new entrants and

managerial staff, and increasingly for uni-

versity graduates. A special concern of the

29Kuehne Foundation


Kuehne Foundation is to invest in the

training and further development of logis-

tics specialists and to increase the attrac-

tiveness of this professional field.”

Hamburg’s First Mayor Ole von Beust was

unstinting in his praise for Kuehne’s

investment: “The commitment of the

Kuehne Foundation to science and

research is quite outstanding! Hamburg

is the logistics hub of the north. With the

Kühne School of Logistics and Man-

agement, Hamburg will now have a

logistics research and teaching centre

without parallel in Germany. This will

benefit not only science but also the

many firms that are in urgent need of

excellently trained specialised staff.”

Prof. Dr.-Ing. Edwin Kreuzer, President of

the TUHH, could not conceal his delight:

“We are very grateful for this generous

donation and are conscious of our obliga-

tion to develop the Kühne School of

Logistics and Management into an insti-

tution that earns world renown through

the high quality of its instruction and

research.”

In this public-private partnership the

TUHH will create five new professorships

concentrating on the fields of economics,

technology and management, and contri-

bute what is recognised to be a high level

of expertise through regional and interna-

tional research projects in its logistics

departments. Its financial contribution

will amount to 2.6 million euros per year.

Further projects

Concern for the health of children is the

motivation for another project which is

being supported by the Kuehne Foun-

dation together with the Cleven-Becker

Foundation (Dr. Hans-Dieter Cleven and

Boris Becker). In April of this year they

signed an agreement with the University

of Basel that over the next three years will

provide the Institute for Sport and Sports

Science with a total of 540,000 Swiss

francs for research into the exercise and

nutritional behaviour of children. The stu-

dy will show how fitness influences the

physical health of children, as well as

examining its effect upon mental and

social aspects. In Switzerland and Germany,

one child in every four to five in the six-to-

twelve-year age group is overweight.

These “excess pounds” lead to a wide range

of problems which not only impair health

but also result in avoidable additional

health-care costs (estimated in Switzer-

land at 2.4 billion Swiss francs per year).

The Kuehne Foundation has pursued the

theme of “Environment and Logistics” for

more than 15 years, and in 1992 initiated

a research programme “Transport and

Environment”. In the subsequent years it

completed three central projects which

are of high informative value for the

whole logistics industry, with the themes

“Environment-Conscious Transport Man-

agement”, “Goods Traffic Centres and the

Environment” and “Environmental Dyn-

amics in Transport”. So it is not by chance

that “Environment & Logistics – Harmon-

isation of Efficiency and Social Responsi-

bility in Logistics” was the topic of the

Logistics Days of the Kuehne Foundation

in Schindellegi, Switzerland, on 18 June.

At this successful event, participants from

eleven countries heard relevant contribu-

tions and took part in discussions in

which they exchanged their views on this

theme which is of great importance for

the future of every company.

Supporting research into the exercise andnutritional behaviour of children: (from left)Dr. Hans-Dieter Cleven, Klaus-MichaelKuehne, Dr. Lukas Zahner (Basel University),Boris Becker.

Signing the agreement: (back row from left) Ole von Beust, First Mayor of the Free andHanseatic City of Hamburg; Dr. Jörg Dräger, Senator for Science and Research, Hamburg;(front row from left) Klaus-Michael Kuehne, President of the Kuehne Foundation; Prof. Dr.-Ing. Edwin Kreuzer, President of the Technical University of Hamburg-Harburg.

Round the World


30

Awards from allover the globeIn the past months Kuehne + Nagel has

been honoured with seven different

awards. The French company won the

Logistic Innovation Award in the cate-

gory of human resources management

for its internal Master University Con-

cept. This was awarded to the company

on the occasion of SITL, the internation-

al logistics fair in Paris. The jury, con-

sisting of industry experts and universi-

ty lecturers, praised the programme as

an innovative method of developing the

professional knowledge of managers in

the logistics sector. The Supplier Award

2007 was given to the German organi-

sation by Porsche AG. The sports car

manufacturer conferred this distinction

upon the logistics provider in recogniti-

on of its high dependability, excellent

quality and good partnership-based

cooperation. Kuehne + Nagel has served

Porsche since the 1970s and is primarily

responsible for the supply by airfreight

of spare parts to the USA, the Middle

East and South Africa. In Britain the

company was honoured with the IFW

Award for Supply Chain Excellence.

The prize gives recognition for reliability,

cost-effectiveness and punctuality in

meeting the needs of one of the biggest

customers in the aviation sector. In

North America Kuehne + Nagel was

named the Best 3 PL for Hi-Tech + Elec-

tronics by “eyefortransport”, one of the

biggest providers of logistics and trans-

port information. The Kuehne + Nagel

company in Mexico has received the

National Logistics Award, which was

awarded for the first time, in the cate-

gory “Best Logistics Service Provider”.

The prize honours the company’s conti-

nuous investments in innovative custo-

mer solutions and competitive supply

chain management. The Exporting

Excellence La Nacion-TCA 2007 Award

went to the Argentinean national orga-

nisation. The prize was awarded by the

national newspaper “La Nación” and the

firm of Terminal de Cargas Argentina

(TCA), for the biggest growth in export

airfreight between 2005 and 2006. The

Thai prime minister General Surayuth

Chulanont recently conferred the Good

Practice Workplace on Labour Rela-

tions and Labour Welfare Award 2007

upon Kuehne + Nagel. This prestigious

prize, which the organisation has won

for the third consecutive time, recog-

nises outstanding enterprises for their

substantial efforts made in increasing

the general welfare of their employees.

A company’s personnel administration,

labour relations and its labour welfare

systems, as well as further education

opportunities and promotion prospects

are some of the major judging criteria.

Kuehne + Nagel wins the IFW Award: (from left) Michael Portillo, former Member of Parliament;Rob Riddleston, Head of Transport and Logistics, Barclays (category sponsor); Alex Hunter,Global Key Account Manager, Kuehne + Nagel; Martin Roebuck, Editor IFW Magazine.


31Round the World

Home again: The bell ofthe cruiser Dresden”It travelled to Chile by sea in the First

World War: the bell of the light cruiser

“Dresden”, with a height of 90 centi-

metres and a weight of 155 kilograms. It

has now made its return journey by air,

carefully packed and at no charge, as

Kuehne + Nagel cargo.

The cruiser was sunk by British warships

in Cumberland Bay off the Chilean

Robinson Crusoe Island on 14 March

1915. After the bronze bell was disco-

vered by a German-Canadian expedition

in 2003, a joint German-Chilean project

made every effort to recover it as soon

as possible in accordance with the

UNESCO Convention for the Protection

of Underwater Cultural Heritage. In

February 2006 the bell was finally

raised from a depth of 65 metres, thanks

to support from public authorities, muse-

ums and navies in both countries. After

the Chilean education minister had

ruled that the bell, which had become

the property of the Republic of Chile

as a national monument, could be

brought to Germany on loan, it was

then the turn of Kuehne + Nagel to

manage the return journey. The valuable

cultural object is now in the central

workshops of the Archäologisches Landes-

museum in Schleswig, where it is being

freed of salt, cleaned and conserved. It

will afterwards be transferred to the

Military History Museum of the Bundes-

wehr in Dresden, which is already

preparing for its presentation.

A large number of customers and many interested parties

from all over the world called at the Kuehne + Nagel booth

at the leading international fair for logistics, telematics

and transport in Munich to learn about the company’s

extensive service portfolio. The stand featured presenta-

tions that changed every day and focused on the theme of

“KN Login”, the globally standardised information system

for the complete management of goods flows. The logistics

specialists also informed visitors about new airfreight

products and innovative developments in overland transport.

Kuehne + Nagel at the “transport logistic” fair

At the handing-over ceremony in Kiel/Germany (from left): Prof. Claus von Carnap-Bornheim, Direc-tor, Archäologisches Landesamt Schleswig-Holstein; Vice-Admiral Wolfram Kühn, Deputy Inspector-General of the Bundeswehr and Inspector of the Armed Forces Joint Support Service; H.E. MarigenHornkohl, Ambassador of the Republic of Chile; Peter Harry Carstensen, Prime Minister of the Stateof Schleswig-Holstein; Dr. Willi Kramer, Archäologisches Landesamt Schleswig-Holstein; Reinhard R. Kütter, Honorary Consul of the Republic of Chile and General Representative of Kühne + Nagel (AG & Co.) KG; Commodore Enrique Larranaga, Director de Educación de la Armada de Chile.

32 Round the World


Bundeswehr consultsKuehne + Nagel Bremen

The multifaceted offering of one of the

world’s leading logistics providers was

the reason for a visit by Brigadier Harry

Richter, the commander of the German

army’s new logistics school in Bremen, with

Donation for children in YunnanThe staff of Kuehne + Nagel China

collected articles for the schoolchildren

of a poor district in the province of

Yunnan. The total of 6,250 items in-

his deputy Colonel Hans-Otto Drotleff

and 14 other officers. The group was wel-

comed at the Bremen Kuehne + Nagel

office by Reinhard R. Kütter, General Repre-

sentative of Kühne + Nagel (AG & Co.) KG,

A token of respect: the “Tibet Hada”.

cluded mainly urgently needed winter

clothing but also writing equipment as

well as table tennis and badminton

racquets. The Tibetan children and

their families live in great poverty at an

altitude of 3,700 metres, where tempe-

ratures often fall to minus 20 °C. As a

token of their thanks for the staff’s

generosity, representatives of the school

presented letters from the pupils and

also gave a traditional token of their

deep respect with the “Tibet Hada”, a

long silk scarf that stands for purity,

loyalty and fidelity.

and Jürgen Tonak, branch manager in

Bremen. The guests were particularly inter-

ested in high added-value fields such as IT-

supported supply chain management ser-

vices, and the area of staff development.

33Round the World


With the opening of a branch in Kaliningrad and an air-

freight office at Moscow Domodedovo Airport, Kuehne +

Nagel is continuing its strategy of establishing a logistics

network across Russia to optimally support its customers in

developing this dynamic market.

Kaliningrad is an important import route into mainland

Russia. With its year-round ice free port on the Baltic, the

exclave offers an interesting logistics potential. Kuehne +

New offices inKaliningrad and atDomodedovo Airport

Nagel’s new branch will initially focus on offering sea-

freight services. In the course of next year the portfolio will

be expanded to include overland, warehousing and air-

freight solutions.

At Russia’s biggest and most important air hub, Moscow’s

Domodedovo Airport, Kuehne + Nagel customers are now

offered the full scope of airfreight import, export and tran-

sit services, including Kuehne + Nagel’s new Cargo 2000

based airfreight products, as well as comprehensive

customs services.

Construction begins in Dubai

Another step is completed: The corner-

stone-laying ceremony, in the presence

of numerous Kuehne + Nagel executives

from the region and Abdulla Al Falasi,

the Marketing and Corporate Communi-

cation Director of the urban construction

project Dubai World Central, symboli-

cally marked the start of work on the

state-of-the-art logistics terminal includ-

ing office facilities in Dubai Logistics

City. Thus begins the development of

the Dubai facility into the principal

Kuehne + Nagel distribution hub for

the Middle East (see our detailed report

in the last issue of World Magazine).

The first construction phase of the

planned facility with a total area of

30,000 sqm is to be completed at the

beginning of 2008, when a storage and

handling area of 17,000 sqm will be

available. The new installation will

complement the existing Kuehne +

Nagel logistics terminal in the Jebel Ali

free trade zone.

Symbolically marking the start of construction: the cornerstone-laying ceremony.

34


34 People & News

The Board of Directors of Kuehne +

Nagel International AG has appointed

Reinhard Lange (58) as the successor to

CEO Klaus Herms. Since 1999, Reinhard

Lange has been a member of the Man-

agement Board of Kuehne + Nagel Inter-

national AG with responsibility for Sea &

Air Logistics. Reinhard Lange will as-

sume his new function as of June 30,

2009, when Klaus Herms will retire after

40 years of service. Until then, Lange

will maintain his current responsibilities

and will at the same time act as Deputy

CEO. Reinhard Lange started his career

with Kuehne + Nagel at the Bremen

office in 1971. In 1985 he accepted a

new challenge in Hong Kong, where he

successfully developed the seafreight

business in the Asia Pacific region as a

member of the regional management

team. He returned to Germany in 1991

as a member of the national manage-

ment board, where he was responsible

for the business unit seafreight. From

1995 to 1999 he was Managing Direc-

tor of the Canadian organisation.

LEO award forKlaus-Michael KuehneLEO stands for “Logistics.Excellence.

Optimisation”. To mark the 60th birth-

day of the trade journal DVZ (Deutsche

Reinhard Lange tosucceed Klaus Herms

Verkehrs-Zeitung) the prize was awar-

ded for the first time this year in a total

of six categories.

Honoured for his lifetime achievement – Klaus-Michael Kuehne.

Reinhard Lange

The LEO award in the category “Life

Achievement in Logistics” went to

Klaus-Michael Kuehne, Executive Chair-

man of Kuehne + Nagel International AG.

With the prize, the journal honoured his

great personal effort in building up one

of the world’s leading logistics groups

out of the family firm that was founded

in Bremen in 1890. Through the Kuehne

Foundation, Klaus-Michael Kuehne also

supports the academic training and

development of young logistics man-

agers, as well as research in the fields of

logistics and medicine, and humanitari-

an, charitable, cultural and ecclesiastic

projects.

35


35People & News

Little girl, big gesture“Tsunami aid from Kuehne + Nagel

employees” was the title of the article

in the last World Magazine which report-

ed on the collection of funds in aid

of the victims of the tidal wave of

December 2004. Members of staff and

the company itself contributed roughly

equal shares of a donation amounting

to 550,000 Swiss francs, and decided to

use it for a sustainable reconstruction

project in the part of Indonesia most

severely affected by the disaster. Under

a partnership agreement signed with

the foundation Schweizer Freunde der

SOS-Kinderdörfer (Swiss Friends of the

SOS Children’s Villages), the funds are

being used to pay for building and

equipping a kindergarten and one of the

15 family houses in the village in Banda

Aceh. This will provide a home for

roughly 150 children (you can read more

about this in the next issue).

This joint action by the whole of the

Kuehne + Nagel Group so impressed one

little Swiss girl Darline (11) that she took

up pen and paper to personally thank

Klaus-Michael Kuehne for the company’s

readiness to help – a gesture that has

made its mark.

The family house, which will shortly be inaugurated, offers them the protection of a secure home.

www.kuehne-nagel.com

Documents

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