Panalpina Los Angeles adds an additional 42,000 square feet of warehouse space, further extending the company's portfolio of supply chain management services to clients in Southern California and beyond.

Lucas Kuehner, USA Managing Director, emphasizes, “As companies are increasingly outsourcing all but core functions, this latest expansion in the crucial Southern California market is customer and market driven”. He adds, “Our Los Angeles Business Unit is gearing the new space to clientele that will most benefit from broader and more comprehensive supply chain involvement.” He further commented, “In order to accommodate recent awards and proposed new business from existing customers in the hi-tech and couture industries, we realized that it made a lot of sense to secure the additional space, fitting it with mobile logistics racking and shelving.”

Established in the area over 50 years ago, Panalpina strengthens its market position in Los Angeles with this expansion, both as a destination logistics provider and a trans-shipment gateway. With the extension, Panalpina Los Angeles includes over 100,000 square feet of warehouse space, 27 dock doors and high-rise racking beneath the 32-foot ceiling. Built in 2000, the leased facility is equipped with a state-of-the-art inventory control program, a high value cargo cage and full security system with 24/7 closed circuit cameras throughout.

Materials and Vendor Management
Beyond the core freight forwarding transit warehouse activities, the Los Angeles warehouse also provides logistics import/export services such as permanent storage, customized product labeling and packaging activities. At the highest end of complexity, Panalpina Los Angeles offers integrated logistics services including product customization, kitting, quality controls and inspections on top of just-in-time and just-in-sequence goods distribution. Panalpina also currently facilitates continuous product replenishment via VMI (vendor managed inventory) activities and other tailored material management solutions such as cost effective Direct-to-Market and Inbound-to-Manufacture concepts that bypass the customers’ own distribution centers.

All of the value-added activities as well as Panalpina's Merge-in-Transit and Cross-Dock operations are supported by Panalpina’s fully-integrated Warehouse Management System suite using web-based portals and RF-driven scanner technology.

Market Ready Expertise
Built in 2000 and strategically located between the LAX airport and the Los Angeles/Long Beach port complex, Panalpina Los Angeles features a dedicated multilingual and highly-specialized staff proficient in handling the often complex and far reaching needs of our core industry vertical customers in the retail and fashion, automotive, healthcare, hi-tech and telecom market segments.

According to Jim Seiple, Business Unit Manager Los Angeles, “The expanded site provides ample room for us to tap into the existing infrastructure and know-how.” He further stated, “We are confident that with our leading edge supply chain management services, Panalpina Los Angeles will further solidify its footprint as one of the principal players in this strategic market and gateway.”

Underlying EBIT of EUR1.47 billion surpasses the revised guidance of at least EUR1.35 billion
Consolidated net profit of EUR644 million considerably higher than 2008
Group presents the cornerstones of its new financial strategy - proposed dividend for 2009 unchanged at EUR0.60
Group forecasts higher operating profit for 2010 and 2011
CEO Frank Appel: "We have successfully managed the crisis."
Hermann Ude and Bruce Edwards appointed to Board of Management for a further five-year term

Deutsche Post DHL generated underlying EBIT of EUR1.47 billion in the full year 2009, exceeding its November forecast of at least EUR1.35 billion. One of the key contributors to this positive development was the introduction of the 'IndEx' program at the end of 2008: It generated cost savings of EUR1.1 billion - one year ahead of the original schedule and EUR100 million ahead of the last forecast for the end of 2009. These efficiency increases also significantly helped Deutsche Post DHL to achieve its consolidated net profit target. Following a loss in 2008, the full-year consolidated net profit rose to EUR644 million in 2009. Deutsche Post DHL's 2009 capital expenditure of EUR1.17 billion also fully met expectations.

"We have successfully managed the repercussions of the economic crisis and exceeded our targets for 2009," said Frank Appel, Chief Executive Officer of Deutsche Post DHL. "Thanks to strict cost management and the consistent implementation of our Strategy 2015, we are now able to benefit overproportionally from the accelerating global economic recovery."

Outlook: Sustainable improvement of profitability

For this year, the Group foresees a moderate recovery in global transport volumes. Against this backdrop, Deutsche Post DHL expects underlying EBIT to total between EUR1.6 billion and EUR1.9 billion in 2010. In a reflection of the Group's two-pillar strategy announced last year, the DHL Divisions and the MAIL Division are to make roughly equal contributions to earnings for the first time: While the MAIL Division is expected to generate earnings between EUR1.0 billion and EUR1.2 billion, the contribution by DHL is expected to total between EUR1.0 billion and EUR1.1 billion. Corporate Center expenditures are forecast at around EUR400 million.

As a result of an anticipated significant decline in non-recurring items Deutsche Post DHL's reported EBIT is expected to be considerably above last year's level. Consolidated net profit should further improve compared to 2009. "We are optimistic about the future, even though many uncertainties remain about the strength of the economic recovery as well as about political and regulatory issues," Appel added. "We will move ahead as planned this year and sustainably improve the Group's profitability with innovative products, high service levels and the ongoing development of customer-oriented solutions." The Group expects the positive earnings trend to continue in 2011.

Business year 2009: Increase in earnings despite global economic crisis

At Deutsche Post DHL, the global economic crisis caused a significant decrease in transport volumes last year triggering a 15.2 percent drop in revenues to EUR46.2 billion. However, successful cost cutting across all businesses, substantially lower restructuring expenses as well as the planned reduction of losses from the U.S. EXPRESS business helped mitigate the impact on the Group's profitability. Reported EBIT of EUR231 million for 2009 thus substantially exceeded the EUR966 million loss incurred in 2008.

The 2009 result includes losses from the Arcandor insolvency and costs related to onerous contracts amounting to a total of EUR344 million. In addition to the operational improvements, positive effects from the Postbank sale as well as lower taxes led to an increase of the consolidated net profit to EUR644 million compared to a loss of EUR1.7 billion in 2008. As a result, earnings per share climbed from EUR-1.40 in the previous year to EUR0.53 in 2009.

Based on last year's positive results and the Group's confidence in the future, the Board of Management and the Supervisory Board will propose a dividend of EUR0.60 to the Annual General Meeting on April 28, 2010, maintaining last year's level. In addition, Deutsche Post DHL's Supervisory Board in its meeting yesterday appointed Hermann Ude and Bruce Edwards to the Board of Management for another five years starting 2011. Ude (48) will continue to be in charge of the Corporate Division "Global Forwarding, Freight" while Bruce Edwards (54) will remain in charge of the Corporate Division "Supply Chain". Both were first appointed to the Board of Management in March 2008.

Financial strategy: Focus on stability and flexibility
As in the past, ensuring financial stability and flexibility will remain a top priority for Deutsche Post DHL. As an appropriate balance sheet structure is paramount to achieving this objective, the Group's new financial strategy will predominantly focus on the firm's credit rating: Deutsche Post DHL currently holds a BBB+ rating from Standard & Poor's and a Baa1 from Moody's. The company seeks to retain these rating levels long-term. The financial strategy also includes a specific target for the long-term dividend policy: going forward, the firm plans to distribute 40 percent to 60 percent of its consolidated net profit to shareholders.

"This long-term oriented dividend policy with its focus on sustainability is an important message to the capital market, showcasing our efforts to further increase our attractiveness to investors," explained Deutsche Post DHL Chief Financial Officer Larry Rosen. "At the same time, our financial strategy will ensure that we possess the necessary financial strength and flexibility to further grow our operations and thus successfully implement our Strategy 2015."

Fourth quarter 2009: Negative revenue trend halted
During the fourth quarter, the Group was able to halt the negative revenue trend created by weakened demand and reduced transport rates. The Group increased quarter-on-quarter revenues for the second time in a row. Year-on-year, though, revenues fell by 11.6 percent to EUR12.4 billion. At EUR-283 million, the consolidated net profit was considerably better than the previous year's level. A loss of more than EUR3 billion was recorded in the final quarter of 2008. At the same time, earnings per share rose from EUR-2.64 to EUR-0.24. The loss of the final quarter in 2009 is wholly attributable to high restructuring costs, expenditures related to the Arcandor insolvency and costs related to onerous contracts.

MAIL Division: Market share maintained

During the past year, the MAIL Division not only was affected by the global economic crisis, but was also confronted with the increasing substitution of physical mail by electronic media. As a result, revenues were 4.9 percent below the previous year's level, totalling EUR13.7 billion. Thanks to its intense customer focus and its high-quality service, Deutsche Post maintained its share of this shrinking market at 87.2 percent. In addition, comprehensive cost-cutting measures cushioned the impact from higher wages and losses related to the Arcandor insolvency on the division's profitability. For fiscal year 2009, underlying EBIT fell by 14.0 percent to EUR1.4 billion. In the fourth quarter, though, it rose by 7.4 percent despite the continuing decline in revenues.

EXPRESS Division: Profitability improved
Lower volumes also impacted the EXPRESS Division.

During the second half of the year, however, trade volumes began to rise sequentially. The fourth quarter saw a slight recovery of the Time Definite Domestic and Day Definite Domestic product groups outside the U.S. Nonetheless, revenues for fiscal year 2009 fell by 24.4 percent year-on-year to EUR10.3 billion.
The main causes of this decrease were the Group's exit from the domestic express business in the U.S. along with exchange rate fluctuations and lower revenues from fuel surcharges. Outside the U.S., revenues adjusted for acquisitions and exchange rate fluctuations were only 11.8 percent below the previous year's level. The smallest drop in revenues was reported by the Asia Pacific region at 6.0 percent to EUR2.6 billion.

In Europe and the EEMEA region (Eastern Europe, the Middle East and Africa), revenues fell by 15.5 percent and 10.4 percent, respectively, to EUR5.6 billion and EUR1.1 billion. In the Americas region, which includes Latin America and the Caribbean as well as Canada and the U.S., revenues decreased by 58.6 percent. Excluding the U.S., revenues in the region fell by 14.8 percent in the past year.

Unlike the revenue trend, the division's profitability climbed considerably in the past year. Thanks to strict cost management, underlying EBIT was 45.1 percent above the previous year's level at EUR238 million. A key reason for this positive development was the significant reduction in losses previously incurred in the U.S. The target of reducing the annualized loss to less than U.S.$400 million by the fourth quarter has been achieved. In the other regions, underlying EBIT totalled EUR692 million, compared to EUR1.1 billion in the previous year.

GLOBAL FORWARDING, FREIGHT Division: Positive trend

The decline in world trade levels resulted in double-digit decreases in transport volumes in the air and ocean freight markets. Nonetheless, the GLOBAL FORWARDING, FREIGHT Division was able to sequentially increase volumes each quarter during the year. Marketing and sales efforts were increasingly successful, particularly in the areas of life sciences and consumer goods. Due to the initial economic recovery, air freight volumes rose year-on-year for the first time in six quarters during the fourth quarter. In fiscal year 2009, DHL was able to maintain or even expand its market share in the international air and ocean freight markets and in European road transport.

However, as a result of the general decline in freight volumes, lower fuel surcharges and reduced freight rates, revenues in this division were 23.3 percent lower year-on-year at EUR10.9 billion. Thanks to systematic cost management including noteworthy productivity gains, the effect on the division's profitability could be cushioned. The underlying EBIT decreased from EUR403 million in 2008 to EUR272 million.

SUPPLY CHAIN Division: Market position further strengthened

Despite the difficult market conditions, the contract logistics business of Deutsche Post DHL was able to further expand its market position in 2009. Two key reasons for this positive development were new business contracts worth EUR1.1 billion and a continuing high contract-renewal rate of 90 percent.

Nonetheless, revenues fell by 8.8 percent to EUR12.5 billion. This decrease resulted from substantial negative currency translation effects and the company's own decision to decline renewal of underperforming contracts or to terminate them prematurely.

With the help of cost-cutting measures, the impact of the economic crisis on the division's profitability could be held in check. While underlying EBIT was indeed EUR-121 million, this loss was exclusively related to charges totalling EUR213 million that were connected with the insolvency of Arcandor. Excluding this effect and additional one-time costs for onerous contracts, underlying EBIT in this division would have been near the previous year's total of EUR196 million.

ProLogis announced a first-quarter lease of 182,000 square feet (16,900 square meters) at ProLogis Parc Ichikawa II to JR East Logistics, a group company of East Japan Railway Company, the largest railway company in Japan.

"We completed construction at ProLogis Parc Ichikawa II in October 2009 and are very pleased to announce full leasing at the facility just four months later," said Mike Yamada, ProLogis president in Japan. "Japan's logistics property market is stabilizing and our customers are becoming more confident about near-term economic conditions. ProLogis is happy to be able to support our customers' new requests for modern and efficient distribution space."

ProLogis Parc Ichikawa II is a five-story, 802,000-square-foot (74,500-square-meter) distribution facility located near Tokyo in the Chiba Prefecture. The park's location gives ProLogis customers excellent access to major national expressways, the Wangan Expressway and the Keiyo Expressway.

JR East Logistics' East Japan Railway Company will use the space as a distribution hub for convenience stores and newspaper stands located within the premises of its train stations throughout the Tokyo metropolitan area.

Nordstjernan AB (“Nordstjernan”) and Rosti A/S (“Rosti”) agreed that Nordstjernan should, through its wholly-owned subsidiary Stella Plastic Holding AB (“Stella”), acquire 100 percent of the shares in Rosti Technical Plastics Holding A/S (“RTP”), cf. press release of December 1, 2009. Today, March 9, 2010, closing of this agreement was concluded after customary approvals from competition authorities.
The new merged Stella/RTP group, headquartered in Copenhagen, Denmark, will be named Rosti Technical Plastics with Börje Vernet, presently CEO of Stella, as CEO. The merged company will have a turnover of approximately 175 MEUR and around 1800 employees.

We look forward to continuing the development of the companies in the new Rosti Technical Plastics group and to serve the customers in the best possible way. I am convinced that Stella and RTP will make a strong partnership; both groups have coped very well with the economic downturn during 2009”,

Nordstjernan has decided to decline its option to acquire the Rosti US operations. “This decision was difficult. We feel, however, that a strategy of focusing our resources and managerial efforts on Rosti’s European and Asian operations will enable us to provide our customers the greatest benefit and value”, says Börje Vernet.

Rosti A/S, part of the A. P. Moller - Maersk Group, will continue to operate five factories - three Technical Plastics factories in the USA and two PET bottle factories in Europe. “All of the 10 Rosti factories, including the 5 factories sold to Nordstjernan, showed a very strong performance in 2009. Despite a 20% drop in group sales due to market recession, EBIT more than doubled and order intake of new projects for the future was record high”, says Stig Hoffmeyer, Senior Vice President of A. P. Møller - Mærsk.

RTP produces injection-moulded plastic products for a number of industries. During 2009, RTP had sales of 115 MEUR from its plants in China, India, the Netherlands, Poland and Scotland.
For more information see www.rosti.com.

Stella (formerly GP Plastic) produces injection-moulded plastic products mainly for the food industry. During 2009, Stella had sales of 45 MEUR. The company has plants in Germany and Sweden. For more information see www.stellaplastic.se.

Nordstjernan is a family-controlled investment group that creates growth in value through longterm and active ownership of Nordic companies. During 2009, Nordstjernan had a turnover of over 6 billion EUR. For more information see www.nordstjernan.se.

Rosti A/S is a part of the A.P. Moller - Maersk Group that includes a number of companies within shipping, oil, logistic and retail. For the last number of years, A.P. Møller - Mærsk has had the strategy to dispose of the Group’s industrial enterprises if non-core business to shipping and energy.

Louis Vuitton Japan, a subsidiary of the LVMH Group, one of the world’s most prestigious companies in the retail industry, has awarded Kuehne + Nagel Japan a contract for the management of its regional distribution centre in Osaka. Based on the systems and processes customised in this facility, Kuehne + Nagel will further be responsible for setting up showcase warehouse operations for all of Louis Vuitton’s outsourced distribution centres worldwide.

As a major part of the agreement, Kuehne + Nagel has leased a dedicated logistics facility in Amagasaki, conveniently located between the seaports of Kobe and Osaka. In order to enable maximum flexibility and efficiency, Kuehne + Nagel provides a comprehensive ware¬house solution, covering layout design, material flow planning as well as the installation of ultra-modern security measures and advanced information systems fully integrated with Louis Vuitton’s worldwide opera¬tions. Particular emphasis is placed on the fulfilment of the latest environ¬mental standards; the facility is among the first in Asia-Pacific that are accredited with an ISO14001 certification.

At the premises with a handling and storage capacity of 5,600 sqm, Kuehne + Nagel’s services will cover the inbound receipt of goods by sea and air, label scanning, quality and quantity checks, pick-and-pack operations, sales-ready preparation as well as reverse logistics for the entire range of Louis Vuitton leather goods and accessories. In addition, Kuehne + Nagel will provide value added services, such as pre-wrapping and care label tagging. A dedicated competence team of around 20 experts will support Louis Vuitton on a 24/7-basis with the most stringent standards in security and operations.

Dave Goualier, Manager of Logistics, Supply Chain & Quality for Louis Vuitton Japan, comments, “The sophisticated nature of our supply chain requires a logistics provider to be capable of maintaining a reliable balance between efficiency, flexibility and quality. The showcase operations deployed in our new state-of-the-art distribution centre underlines the competence of Kuehne + Nagel as a logistics service provider.”

“We are pleased to have been able to deliver significant improvements to Louis Vuitton’s supply chain. With our innovative portfolio of IT-based integrated services, our goal is to support the retail giant in meeting its existing and future logistics requirements,” said Holger Beyer, National Manager of Kuehne + Nagel Japan

Cost-efficient alternative to air freight for deliveries throughout China

TNT Hoau, TNT’s road distribution arm in China, today announced the completion of its nationwide day-definite road distribution network. During the past two months, TNT Hoau extended the coverage to Chengdu, Chongquing, Zhengzhou, Xian, Yantai and Xiamen. The company now offers guaranteed day-definite ground delivery to 26 of the biggest cities in the country, using 246 day-definite linehauls. The network covers 800 depots throughout China, with a large concentration in the major economic regions, including the Yangtze river delta, the Pearl River Delta, and the Bohai Bay.

TNT Hoau’s day-definite service provides a cost-efficient, yet fast and reliable alternative to domestic air freight, with door-to-door transport and online track and trace. For example, a shipment from Guangzhou to Shanghai will take a little less than two days to be delivered. Shipments are bar-coded and container trucks are tracked by GPS. In addition to extending coverage, TNT Hoau has completed the purchase of 400 EU III-compliant trucks and launched a nationwide customer hotline dedicated to the day-definite service.

“Our customers in China will now be able to enjoy the full business benefits of a high-standard, national-level day-definite road distribution service, at a price well below the cost of domestic air freight,” said Edward Xu, CEO of TNT-Hoau. “The successes we have achieved for the day-definite road distribution service enhances TNT’s overall service offerings in China, and strengthens our leadership in China,” added Michael Drake, Managing Director of TNT North Asia.

TNT Hoau introduced its day-definite road service in February 2009 with the ambition to set a new quality benchmark in the Chinese road transportation market. The service has been used by small-medium enterprises as well as Fortune 500 companies, especially from the high-tech, electronics, automotive, and textile sectors.

TNT Hoau’s day-definite service complements its national less-than-truckload (LTL) operations. Overall, TNT Hoau manages a road distribution network of 1,500 depots and 56 domestic hubs, covering more than 600 Chinese cities. In addition, TNT has international road and air networks respectively connecting China to Southeast Asia and the rest of the world.

A one-stop facility to provide integrated supply chain solutions with value-added services

DHL announced plans to invest HK$360 million (EUR30 million) to expand its operations into a single, multi-user facility for DHL Supply Chain to cater for growth in Hong Kong. Once completed in January 2012, DHL Supply Chain will occupy at least 25% of the Interlink facility located in Tsing Yi. More than 300 employees will be staffed at the site.
To meet growing demand for its range of bespoke services, particularly among customers in the Consumer, Fashion and High-Tech industries, DHL Supply Chain will operate a significant part of its services across Hong Kong from the new Interlink facility being developed by the Goodman Group.

Situated between the container ports and Hong Kong International Airport, Interlink will be located at the heart of the logistics and port hub. Spread over five floors, it will offer immediate access to Tsing Yi Road, which is just 2 km to Kwai Chung Container Port, 20 km to Hong Kong International Airport, and 25 km to the Shenzhen border.

"Customers wanting to drive greater value in their supply chains are no longer simply looking at basic warehousing services. With growing demand for increased end-to-end integrated logistics solutions, the new and conveniently located facility in Hong Kong will enable DHL to provide a comprehensive range of customized and cost-effective logistics services to meet the needs of customers in the dynamic Hong Kong market," said Paul Graham, Chief Executive Officer, Asia Pacific, DHL Supply Chain.

Asia Pacific Distribution Center for Key Industries
Once completed, the DHL Supply Chain facility will function as one of the primary Asia Pacific distribution center for DHL Supply Chain's established business in the Fashion and Apparel industry, supplying European-made garments across the Asian market from Beijing to Sydney to Singapore. In addition, recognizing Hong Kong's strategic importance as a market on its own and a major gateway to Greater China, DHL Supply Chain has long developed its Hong Kong operations as a central hub for many leading retail brands, offering comprehensive warehousing and distribution service as well as consolidating manufacturing from the Greater China area, for distribution to the region or globally.

Victor Mok, Executive Vice President, Greater China, DHL Supply Chain, said, "The high quality, built-to-suit facility will also serve as a Service Parts Logistics hub, providing 24/7 urgent response spare parts delivery to DHL customers in Hong Kong and the Asia Pacific region. Our investment in the Interlink facility is a strong evidence of our continuous confidence in the long term future of Hong Kong as an important gateway of China."

The facility will also offer value-added technical services on-site, such as product regionalization, quality-check and modular repair services. In recent years, DHL Supply Chain has also witnessed increasing demand from the healthcare sector. To cater to growing customer needs, DHL Supply Chain will offer value-added services such as Bill of Material (BOM) creation, co-packing, labeling and territory-wide distribution for customers.

Value-added services
"At DHL, we are always committed to offer best-in-class integrated logistics solutions," said Glen Sutton, Regional Director, Taiwan, Hong Kong and Macau, DHL Supply Chain. "The new Interlink facility will bring our people together under one roof, sharing resources across operations, while improving employee engagement."

Committed to Deutsche Post DHL's GoGreen strategy, DSC has chosen Interlink partly because of its green building measures. Interlink will be built in compliance with the Hong Kong Building Environments Assessment Method (HKBEAM) and Leadership in Energy and Environmental Design (LEED) environmental assessment methods, with the aim of becoming the first building of its kind to obtain such accreditations in Hong Kong. In addition, the building is well-equipped with comprehensive sustainability measures within the property, which include waste recycling and water-cooled air conditioning. Motion sensitive lights will also be installed to ensure the energy consumption for lighting is reduced as much as possible. Interlink will also feature a rooftop garden, natural ventilation and landscaping.

DHL Supply Chain is currently the number one contract logistics provider globally and in the Asia Pacific region. It has established presence in more than 18 countries in Asia Pacific, with approximately 20,000 employees and over two million square meters of storage capacities in Asia Pacific. DHL Supply Chain has 22 regional transport hubs and serves the automotive, consumer, chemical, fashion and retail, healthcare, industrial technology sectors.

CEVA to handle logistics services for Samsung air conditioners in Italy

Milan, Italy, 8 March 2010 – CEVA Logistics, a leading global supply chain management company, has signed a three-year agreement worth €6.5 million with Samsung, the leading company in digital technology sector, to manage the supply chain for its air conditioners in Italy.
CEVA will run the entire operation, including handling customs clearance in the port of Genoa, storage in the CEVA warehouse in Pognano, near Bergamo and final distribution to end users in Italy. Given the highly seasonal nature of the activity, CEVA’s solution guarantees Samsung the greatest operative flexibility, managing approximately 230,000 packages every year, with 50% of the total volume being handled in four months of the year.

CEVA enables Samsung to monitor the entire logistics operation through the latest technology, including delivery tracking with computerized interface and dedicated web portal, assuring complete visibility in real time for every stage of the operation. CEVA will handle reverse logistics activities, including receipt of return and re-stocking of product. Upon request, CEVA will also undertake value-add services such as re-packaging, re-labelling and market configuration of products. To complete the service offered to Samsung, CEVA will create a specific area for the quality control of products.

Daniele Farinella, Logistics Director at Samsung, said: “We have chosen CEVA as our logistics partner as it has planned a personalized and highly flexible service for Samsung, able to adapt to the demand fluctuations that characterize our business. CEVA has also shown considerable concern for the environment which is absolutely in line with Samsung’s own company strategy, for example using a site equipped with solar panels for the independent production of clean energy.”

Gianfranco Sgro, President, Southern Europe, Middle East and Africa, CEVA, said: “We are very proud that a multinational company like Samsung should choose CEVA; thanks to our professionalism and the expertise of our team, we can offer our customer efficient, accurate and integrated solutions whilst optimizing costs. Samsung and CEVA also share the same commitment to the development of sustainable policies and practices to reduce the environmental impact of their respective business activities.”

NYK Holding (Europe) B.V., a wholly owed subsidiary of NYK, has acquired a 26 percent stake in TM International Logistics Limited (TMILL; head office: Kolkata, India; president: Dibyendu Bose), which offers steel-related logistics and harbor operation services and is a subsidiary of the largest steelmaker in India, Tata Steel Limited.*

TMILL was founded in 2002 as a joint venture between Tata Steel Limited (51 percent of shares) and IQ Martrade Holding and Management GmbH (49% of shares), a German company that offers integrated logistics services to steel and related industries. TMILL handles arrangements for the transport of raw materials used to make steel and other products, and also manages related harbor operations for Tata Steel.

NYK has been working to strengthen its business activities in India, and established the joint venture Tata NYK Shipping Pty. Ltd. with Tata Steel in 2007 in response to the growing transport of raw materials in India. This stock acquisition will allow the NYK Group to use its extensive know-how to contribute more to the supply chain of Tata Steel.

After the NYK Group’s acquisition, TMILL’s financials will appear as follows:
Investment ratio: Tata Steel Limited 51%; NYK Holding (Europe) B.V. 26%; IQ Martrade Holding and Management GmbH 23%
Capital: 2,140 million rupees (about 4.1 billion yen)
FY2008 revenue: 6,452 million rupees (about 12.5 billion yen)
FY2008 recurring profit: (about 0.95 billion yen)
Head office: Kolkata, India

*Tata Steel Limited is one of the main companies in the Tata Group, and the largest private steel producer in India since 1970.

International Container Terminal Services, Inc. (ICTSI) has reported consolidated audited financial results for the year ended 31 December 2009, posting full-year revenue from port operations of US$421.7 million, a decrease of 9 percent over the US$463.1 million reported last year; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$175.7 million, down 11 percent from the US$196.4 million earned in 2008; and net income attributable to equity holders of US$54.9 million, down 15 percent over the US$64.2 million earned last year.

The lower net income attributable to equity holders was mainly due to lower volume brought about by the decline in global trade, higher interest expense due to higher debt level, and higher depreciation expense associated with continued investment in the Company’s container handling capacities. These negative impacts were partially mitigated by a reduction in cash operating expenses.

Beginning 1 January 2009, ICTSI has presented its financial statements in US dollars as it changed its functional and reporting currency from Philippine peso to US dollar in accordance with PAS 21 – “The Effects of Changes in Foreign Exchange Rates”. For comparative purposes, 2008 full year results have been translated to US dollars (income statements in US dollars are included as attachments to this release). ICTSI also adopted PFRS 8 – “Operating Segment”, and will be reporting results based on its main geographic regions: Asia, Americas, and EMEA (Europe, Middle East, and Africa).

Enrique K. Razon Jr., ICTSI chairman and president, commented, “Two thousand nine marked the first full year decline in global trade volumes since the end of the Second World War, and ICTSI’s annual results were affected by this difficult environment. We managed to control our costs well and limit the negative impact of volume declines. The second half of the year was notably better than the first with the fourth quarter, showing the first year-over-year growth in volumes since the third quarter of 2008.”

ICTSI’s consolidated volume for the full-year was 5 percent lower at 3,557,256 twenty foot equivalent units (TEUs) compared to the 3,734,892 TEUs in the same period in 2008. Volumes in the fourth quarter were 1,023,305 TEUs, a 7 percent improvement versus the 957,919 TEUs handled in the same period in 2008.
Throughput from the Company’s container terminal operations in Asia, comprised of terminals in the Philippines, Indonesia, Japan, and China, increased by 3 percent to 2,250,924 TEUs in 2009, from 2,181,530 TEUs in the same period in 2008. The increase in volume was mainly due to a 23 percent volume increase handled by YRDICTL (Yantai Rising Dragon International Container Terminal Ltd.), a 16 percent increase at DIPSSCOR (Davao Integrated Port and Stevedoring Services Corp.), and the additional volume generated by the Company’s new terminals in the Philippines, MICTSI (Mindanao International Container Services Inc.) and SCIPSI (South Cotabato Integrated Port Services, Inc.). Excluding the new terminals, volume of the Group’s Asian ports would have declined by 3 percent year-on-year mainly due to the 8 percent contraction in volume at the MICT (Manila International Container Terminal). ICTSI’s container terminal operations in Asia accounted for 63 percent of consolidated volumes for the year compared to 58 percent in 2008.

Volume from the Group’s Americas container terminals, comprised of Brazil and Ecuador operations, was relatively flat, achieving 876,200 TEUs for full-year 2009 compared to 884,596 TEUs in 2008. The reason for the minimal decrease in throughput was due primarily to the contraction in volume at TSSA (Tecon Suape, S.A.) in Northern Brazil. Volume at CGSA (Contecon Guayaquil S.A.) in Ecuador, however, increased by 6 percent due to the growth related to the containerization of banana exports. The share of the container volume from the Americas slightly grew, from 24 percent in 2008 to 25 percent in 2009.

The Company’s Europe, Middle East, and Africa (EMEA) operations, comprised of terminals in Poland, Madagascar, Syria, and Georgia, experienced the biggest drop in throughput with a decrease of 36 percent to 430,132 TEUs in 2009, compared to 668,766 TEUs for the same period in 2008. EMEA accounted for 12 percent of the Group’s consolidated volume in 2009, a decrease from 18 percent in 2008. The large drop in throughput was mainly due to volume contractions experienced at BCT (Baltic Container Terminal) and BICT (Batumi International Container Terminal). BCT’s volume declined by 49 percent, while BICT’s volume decreased by 80 percent year-on-year. Volumes at MICTSL in Madagascar declined by a more modest 3 percent, and TICT (Tartous International Container Terminal) reported growth of 53 percent in 2009.

Full year gross revenues from port operations decreased by 9 percent to US$421.7 million, from the US$463.1 million reported last year due largely to the lower volume brought about by the decline in global trade. This includes the lower revenue contribution from the Group’s five key terminal operations in Manila, Brazil, Poland, Ecuador, and Madagascar, which decreased by 12 percent, from US$428.9 million in 2008 to US$378.1 million in 2009. Consolidated yield per TEU for the full-year dropped by 4 percent to US$119, from US$124 for the full-year 2008 mainly due to the currency weakness relative to the US dollar in countries where the Group operates in.

Revenue contribution from container terminal operations in Asia decreased 2 percent, from US$219.1 million in 2008 to US$213.8 million in 2009. The drop in gross revenue is mainly due to the drop in volume at the MICT and a weaker Philippine peso versus the US dollar in 2009 compared to 2008. Asian port operations contributed 51 percent to ICTSI’s full year consolidated gross revenues.

Full year revenue contribution from container terminal operations in the Americas was 2 percent higher for the full year 2009 at US$147.4 million compared to US$144.9 million in 2008. The increase in gross revenue mainly resulted from the double-digit growth posted by CGSA for the year. Revenue contribution from the Company’s ports in the Americas equaled 35 percent of ICTSI’s full year consolidated gross revenues.

The Group’s Europe, Middle East, and Africa (EMEA) operations, which accounted for 14 percent of the Company’s revenue for the year, fell 39 percent, from US$99 million in 2008 to US$60.5 million in 2009. The revenue contribution decline from the EMEA segment was principally due to the decline in revenues in the Company’s terminals in Poland, Madagascar, and Georgia.

Total consolidated cash operating expenses for the year decreased 9 percent to US$185.2 million, from US$203.8 million in the same period in 2008 due principally to the cost containment measures successfully implemented by all ICTSI’s terminals and cost centers. The decrease in manpower, fuel, equipment, and utilities consumptions is related to the volume contraction and the impact of cost containment measures implemented across all terminals was also a factor for the decrease in cash operating expenses.

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) declined 11 percent to US$175.7 million in 2009, from US$196.4 million in 2008 mainly due to the volume contraction resulting from the global economic slump and the unfavorable volume and revenue mix in 2009. Consolidated EBIDTA margin for full year 2009 was relatively flat at 41.7 percent compared to the 42.4 percent in the same period in 2008.

Consolidated financing costs and bank charges increased by 29 percent to US$21.8 million compared to last year’s US$16.8 million due mainly to higher average debt levels in 2009. Average interest-bearing debt increased by 48 percent from US$302.1 million in 2008 to US$446.0 million in 2009. The effective tax rate for the full year declined to 35 percent from 40 percent in the same period of the previous year. The drop in the Group’s effective tax rate was mainly due to the decline in pre tax income resulting from the reduction in volume and change in corporate income tax rate of ICTSI’s Philippine terminals, from 35 percent in 2008 to 30 percent in 2009.

In 2009, ICTSI’s capital expenditure amounted to US$119 million mainly resulting from CGSA’s acquisition of container handling equipment and civil works in order to expand handling capacity and improve operating efficiency and MICT’s spending on Berth 6. In 2010, the total estimated consolidated capital expenditures is approximately US$123 million mainly for civil works, systems improvement, and purchase of major cargo handling equipment at its port operations in Manila, Brazil, Ecuador, and Madagascar.

The Kühne School of Logistics and Management GmbH, whose sole shareholder is the non-profit Kuehne Foundation, is founding a private independent university: The Kühne Logistics University (KLU) – Wissenschaftliche Hochschule für Logistik und Unternehmensführung. The founding President of the University is Dr. Wolfgang Peiner.

The Kuehne Foundation and the Technical University of Hamburg-Harburg (TUHH) have agreed, within the context of the founding of the KLU, that the former Kühne School will be released from its alliance with the TUHH. From now on the KLU will be part of the Hamburg cluster for logistics research institutes, which, in addition to the TUHH, also includes the Fraunhofer Center for Maritime Logistics and Services (CML). Further, the KLU will cooperate with other Hamburg universities.

The next five years will see the KLU develop two international non-consecutive Master’s Programmes, a Bachelor’s Programme, and a continuing education programme. The profile of the KLU will be completed with a PhD fellowship programme as well as international and interdisciplinary research. The central theme of the KLU is Business Management with a particular focus on “Logistics”, in its economic, technological and international aspects. It is thus intended to serve as exemplary education for qualified management and leadership in complex circumstances.
The KLU plans to launch its teaching activities in October 2010 with the first non-consecutive Master of Science programme in "Global Logistics". The Programme includes a period of study at one of the Asian, European or American partner schools. The Kühne School’s successful Executive Programmes will continue and be expanded. State recognition will shortly be applied for from the Education and Science authorities of the Free and Hanseatic City of Hamburg, and discussions to date on this matter have been promising.

The Kuehne Foundation is currently examining potential locations for a dedicated building for the University in the HafenCity of Hamburg.

The Founding President is Dr. Wolfgang Peiner, a trained freight forwarder and chartered accountant, who for many years was the Chairman of the Board of Directors of the Gothaer Insurance Group. He was also Finance Senator of the Free and Hanseatic City of Hamburg, a post which he held from 2001 – 2006 and in which capacity, he was also a member of the Science Council for five years. For three years he has been a member of the University Council of the Technical University of Hamburg-Harburg. Among other mandates, Dr. Peiner is a member of the Board of Directors of the Kuehne + Nagel International AG as well as Chairman of the Supervisory Board of Germanischer Lloyd.

Schenker (Asia Pacific) Pte Ltd officially opened its first ever IT Shared Services Centre (SSC) at the Jiangsu Software Park in Nanjing.

The SSC occupies more than 15,000 square feet and will primarily pool IT functions such as application development, maintenance, application operations, information and communication technology infrastructure and help desk, for the DB Schenker Asia Pacific organisation and several countries in the region. The Euro 1.5 million project investment for the SSC is expected to yield a project payback in less than three years through greater cost efficiencies and economies of scale.

Officiating at the opening, Member of the Board of Management and CIO for Schenker AG, Peter Schumann said, "In order to compete in the long run, companies need to constantly assess and adjust their IT strategy and thus ensure meaningful investments in technology, infrastructure and process improvements." He also added that this SSC has the potential to become a pilot for global use to deliver more efficient and standardized processes based on global standards.

Steve Dearnley, CEO for Asia Pacific, added, "We are constantly looking at ways to improve our efficiency and this SSC is an innovative example of that. We are optimistic that it will provide a greater competitive advantage for us and indirectly to our customers, as we calibrate a more robust and responsive IT Services structure."