Panalpina Acquired By DSV Under $4.6Bn Deal

Danish logistics giant DSV offered Swiss logistics giant Panalpina an unrefusable offer of
Swis franc195 / share in a deal worth approx $4.6 bn in order to become world leading freight forwarding company .

DSV & Panalpina both were in negotiation for last 2 months with deal starting at
Swiss Franc 170/ share in January which seems to be finally closing at Swiss Franc 195 / share .

After acquiring Panalpina DSV will become 4th largest freight forwarding company in terms of revenue .

After deal completion both logistics giants will be strengthened globally with air tonnage touching to 1.5 m tonnes & sea freight close to 3 m containers (TEUs) yearly.

DSV is also planning to change its name to "DSV Panalpina" in order to reflect its presence & long rich history worldwide .

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Panalpina Opens new logistics centre at Singapore

Located on Pioneer view with an area of 3.5 football pitches Panalpina opens new logistics centre at Singapore.

The warehouse is constructed six floor measuring 25,800m2 of which major space is already rented out .

As per chief executive officer of Panalpina Singapore is very important location for Panalpina as 96 out of its 100 global customer are based out of Singapore.

The new facility can also be used for testing & using new technology including Internet of Things, augmented reality & various automation systems. It can also run 3D printers on behalf of customers which can promote distributed manufacturing in near future.

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Panalpina launches 'Brazil Wings' freighters to São Paulo

 

Panalpina is adding a B747-400 freighter service to São Paulo, Brazil, aimed at manufacturers of heavy machinery and equipment for agriculture and mining.
The direct service from US hub Huntsville to São Paulo, called Brazil Wings, has been designed for customers in the mid-west and in parts of the s south eastern US.
As of March, global forwarder Panalpina will operate scheduled charter flights from Hong Kong to its Huntsville and from Huntsville to São Paulo.
The extended service is part of the renewed long-term agreement between Switzerland-headquartered Panalpina and ACMI lessor Atlas Air. It offers scheduled main deck capacity to South America from the US and a transit time of less than 40 hours from Hong Kong to São Paulo.
“Our customers in the US have a need for fast and efficient connections to Brazil. The new set-up with Atlas Air, where we switched one of our wet-leased aircraft to 200 scheduled charters per year, allows us to meet this demand effectively,” explains Lucas Kuehner, global head of Air Freight at Panalpina.
As of March 3, Panalpina will initially operate two flights per week from Huntsville to Viracopos airport, São Paulo, with dedicated scheduled charters using Atlas Air B747-400 freighters.
Roberto Schiavone, head of air freight for the region Americas at Panalpina, says: “The new service is tailored to companies that manufacture heavy machines and equipment for agriculture and mining.
“Brazil, with its large agricultural and mining industries, is an interesting market for these companies, but getting the goods there can be challenging. So far, the companies had to export via large, congested airports with limited freighter capacity.
Schiavone adds: “We offer an alternative – scheduled main deck capacity to Brazil from an uncongested airport that puts high priority on cargo.
“Export cargo can be easily trucked to our unique air freight gateway in Huntsville. There we offer an airside facility and short distances. This allows for fast expediting and full control on the ground. In addition, customers benefit from cargo consolidation and customs clearance services.”
Panalpina provides daily road feeder services from more than ten major US cities to Huntsville. From the Chicago area, with its important manufacturing base, transport to Huntsville takes as little as 16 hours. Panalpina also manages import customs clearance and delivery to the final destination in Brazil.
The freighter flights from Huntsville to São Paulo connect with the freighter flights coming in from Hong Kong.
“We can fly cargo from Hong Kong to Viracopos via Huntsville in less than 40 hours,” says Matthias Frey, global head of Panalpina’s controlled air freight network.

Source : http://www.aircargonews.net/news/single-view/news/panalpina-launches-brazil-wings-freighters-to-sao-paulo.html

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Panalpina goes into Africa again

Freight forwarder Panalpina has opened new bases in Morocco and Kenya as part of a drive to expand its presence in Africa, a continent in which it was once a dominant player in the oil and gas project sector.
Offices in Casablanca in Morocco and Nairobi, Kenya, and will spearhead a drive for energy and infrastructure business.
Regional chief executive for the Middle East, Africa (MEAC) and CIS, Peter Triebel, said: “Expanding our global presence is part of Panalpina’s overall strategy, especially in growth economies such as Morocco and Kenya. With strong prospects in the two countries, especially in the energy and infrastructure sectors, establishing a formal presence is an important part of our long-term market growth and customer satisfaction objectives.”
However, a Panalpina spokesman ruled out an early return to the important Nigerian market, although there could well be expansion elsewhere. The global forwarder was once a major operator in the country’s oil and gas industry, before it was forced out after becoming enmeshed in a corruption scandal.
He said: “We do not plan a return to Nigeria, but we are indeed looking into opening more offices in countries where we have no own presence so far, especially in the MEAC and APAC regions.”
The new locations will give local customers direct access to Panalpina’s air, ocean and logistics services. Global customers, especially those operating in the energy sector, often require a local presence to achieve integrated, end-to-end solutions.
In Morocco, Panalpina sees opportunities in industries such as energy, automotive, aerospace and healthcare. The country is a local leader in wind power generation and is also investing heavily in solar power, as well as hydro and coal fired power plants. Industrial free trade and logistics zones have brought foreign investment and employment to the north of the country, particularly car manufacturers and their suppliers.
Panalpina’s new managing director in Morocco, Maxime van Geenberghe, also sees Morocco as a springboard for the wider region: “In future the country will serve as a gateway to Mauretania on the West African coast, and to the inland African countries of Mali, Burkina Faso and Niger.”
Meanwhile, the discovery of major oil resources in northern Kenya has brought leading energy companies to the region - Panalpina holds service agreements with many of them - and the new Nairobi office will cater to their growing local requirements.
Managing director for Kenya, Juergen Paliko, says: “Kenya is East Africa’s largest economy and a gateway to the region, especially Uganda and Rwanda. With the Nairobi office in place, Panalpina is now able to take a more focused approach to cultivating local business and also trade lanes from the Middle East and Asia into Kenya.”

Source : http://www.aircargonews.net/news/single-view/news/panalpina-goes-into-africa-again.html

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Air freight volumes rise for Panalpina

Panalpina saw improved group level profitability in the first half of 2014 as air freight volumes grew four per cent over prior year.

However, the Switzerland-based global logistics operator said that unit profitability in both the air and ocean freight segments was affected by a “challenging market”.

While air freight rates “remained under strong pressure,” Panalpina put the focus on trade lane optimisation and expects the air freight market to grow by between 3-4 per cent in 2014.

Panalpina’s half year air freight volume growth to 417,000 tons was in line with the market. Earlier this month, Swiss logistics rival Kuehne + Nagel reported a similar half year rise in air freight volumes, up 3.9 per cent to 580,000 tons.

Second quarter air freight volumes at Panalpina were up by 1.8 per cent to 213,000 tons, compared with a 6.3 per cent surge in the first three months of 2014.

The Panalpina group’s total gross profit and earnings before interest and tax were “significantly impacted” by currency movements although both financials increased two per cent, reaching SFr777.9 million and SFr60.1 million respectively.

Panalpina chief executive Peter Ulber said that there “is still a lot of work to be done in terms of profitability”, especially in ocean freight.

Added Mr Ulber: “The fact that low margins have absorbed much of the growth in the first half of 2014, particularly in ocean freight, goes to show just how important it is that we stay absolutely on course with our strategic execution.

“Turning around loss-making operations continues to be our firm focus. In the mid- and long-term better IT systems and processes will help us improve productivity and profitability as we keep restructuring and rolling out our new operational system SAP TM.”

Source: http://www.aircargonews.net/news/single-view/news/air-freight-volumes-rise-for-panalpina.html

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