The Panalpina magazine 1_2004

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Panalpina – partner to the auto-motive industry

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Client focus is a paramount concernJörg Eggenberger, Panalpina’s Regional CEO EMEA (Europe/Africa/Middle East/Central Asia/CIS), on the constantly changinglogistics business

Focus on Latin AmericaBeat Simon, Regional CEO Latin America, wants to expand Panalpina’sposition in South America

A pioneering spiritA common sense of purpose has united Cargolux and Panalpina for decades

Page 6 Automotive

Page 12 Interview

In safe handsThe partnership between Panalpina and pharmaceutical giant Novartis

Page 20 Health care

A bouquet of services for West AfricaIn West Africa Panalpina offers its Oil&Gas customers a broad range of services

Page 13 Oil&Gas

Page 16 Partners

Cultivating tomorrow’s leadersProactive development of management skills

Page 24 Human resources

Page 26 Worldwide

Page 31 Publishing details

Spotlight on the car industryPanalpina is an experienced logistics partner to the automotiveindustry

Page 4 Interview

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Dear readers, dear colleagues

Another exciting year has come to an end and 2004 is already well underway. Whilst the world economy continued to struggle for most of 2003 we areencouraged by a notable upswing of transport volumes in the last quarter ofthe year and we are confident that the long awaited recovery will gainmomentum in the months to come. During the past two years much of our attention and resources have beenabsorbed by implementing fundamental changes to our organizational struc-ture, e.g. regionalization and the segregation of functions. These changeswere not forced upon us as a remedy for shortcomings or insufficient finan-cial performance – on the contrary – they were initiated to prepare the com-pany for the challenges of the future.Now we move confidently into the future by fully leveraging our newly orga-nized global sales force with operational excellence and the power of centralprocurement. A lot still remains to be done in the years ahead, however, fornow it is time to redirect our focus to where it matters most – the market andthe customer. Talking customer, we would like to draw your attention to the cover story ofthis edition which deals with the extensive service offerings Panalpina provi-des to the Automotive industry and its vast vendor base. Equally impressiveare the sophisticated products and services our company offers to the Oil &Gas Industry along the West African Coast, an area in which Panalpinahas been present for decades. Both examples illustrate the core values of Panalpina – reliable standard prod-ucts for everybody combined with sophisticated specialties, both deliveredwith our determined “can do” attitude which we are famous for.

Yours sincerely

Bruno SidlerPresident of the Executive Board

Let’s do it!

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Client focus is a paramount concernRegional CEO Jörg Eggenberger explains the merits of the newly formed EMEA Region (Europe/Africa/Middle East/Central Asia/CIS) and describes the shifting demands placed on logistics companies.

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Interview

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“Panalpina is an innovative company that serves its clientsby developing new ideas andjoint solutions.”

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Mr. Eggenberger, why were the former AMEC and Europe Regions mergedto create the new EMEA Region?The potential for harnessing synergies wasno doubt a key factor. Most importantly, how-ever, the newly created Region allowed us todovetail our structures even more closely tothe organizational forms of our clients. Afterall, the former AMEC Region was geared tothe oil & gas sector and was not primarily ageographical construct. Also, the relativelysmall workforce was occasionally over-stretched. All that has changed now: therevamped organizational structure allows usto cope with bottlenecks more efficiently.Staff functions such as Health, Safety &Environment (HSE), Security etc. are alsofeeling the benefits. Moreover, the mergerhas freed up additional staff resources thatare now available at short notice. This is aparticular boon for the oil & gas sector.

Aren’t the former AMEC countriesstructured differently from thecountries in the Europe Region?No, not at all. The structures of the nationalorganizations, harmonized by Panalpinayears ago, are similar – and in many casesidentical – worldwide.

Has there been any change in theclient acquisition process?Today, we no longer operate a sales or acqui-sition department in the traditional sense:client counseling has become the number-one priority for both major accounts andSMEs. Customer service takes pride of placeat all levels. Certain differences naturallyexist, given that SMEs tend to operatechiefly at a local level. But these are dulyaccommodated by our organizational struc-tures.

Are present-day requirements in anyway different?We have always cultivated direct, intimateworking relationships with our clients, as itis important for them to know they are ingood hands. That principle remains just asvalid and important as ever. At the sametime, the demands placed on our sales staffhave definitely changed. Today, client advis-ers provide specialist counseling in particu-lar areas and are not required to cover allsectors. One thing must be remembered: ourclients’ needs have changed in line withtheir specific business environment and theeconomic framework as a whole. That’s why

we are wholly committed to providing prod-uct training for our sales staff. To put it in anutshell: client focus is a linchpin of our cor-porate policy and the regionalized groupstructure is a concrete expression of thisphilosophy. Panalpina will always remain aninnovative company intent on serving itsclients by developing new ideas and jointsolutions.

You also mentioned the regional andlocal particularities!That’s right. You can’t only view businessthrough global spectacles, because differentcircumstances and needs prevail in differentcountries. We’re only too aware of this fact,and seek to tailor our services as closely aspossible to the particular situation of the client.While this is particularly important for SMEs,the locally based organizations of our globalaccounts also require appropriate super-vision. That’s why Panalpina has created anunderlying, all-embracing framework thatenables it to provide integral solutions whilecatering for specific demands. Our aim mustbe to define standards and implement pro-cesses that meet both criteria and add upfinancially. Even so, the focus must alwaysbe on the client’s specific needs! Our clientscan rest assured that our processes, stan-dards and structures are every bit as good asthe top-notch products we offer.

How important are Panalpina’sdeclared core industries – hi-tech,automotive, healthcare and oil & gas – for the EMEA Region?These business areas are crucial for theentire Group, not least in terms of transportvolumes. They provide the framework,among other things, for delivering first-ratesolutions to minor shippers on all traderoutes and for the implementation of a suc-cessful carrier and capacity managementsystem with standardized procedures andoptimized interfaces. For our core-sectorsupervisors, we also put on special trainingcourses that focus on the particular featuresand procedures of the relevant industries.After all, no two sectors function alike. Take,for example, a component delivered fourhours late to an oil platform. This may causedelays that cost the operator several hun-dred thousand dollars. In such cases, expen-sive ad-hoc measures to guarantee punctualdelivery pay off for the client. Retail clients,on the other hand, rarely opt for such elabo-rate safeguards as the involved effort would

be out of all proportion to any losses in-curred. I could cite hundreds of similar ins-tances, but what I really want to say is thatsuch differences are duly recognized andfactored into the purpose-designed solu-tions we offer our clients. Incidentally, apartfrom the four global key industries, we alsoserve a number of regional core sectors –fashion and wine & spirits, to name just two.

Which aspect of your work inspiresyou the most?It’s fun to work with people in an interna-tional environment, and mastering newchallenges through teamwork is also verysatisfying. I find it very rewarding that allteam members can play their part in achiev-ing constructive results and see their effortsbear fruit in the form of successful products.

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Curriculum VitaeNameJoerg EggenbergerMarital statusMarried, two childrenYear of birth 1961Nationality Swiss1977–1990Joined Panalpina Group in 1977, held various managerial posts atPanalpina organizations in the UK,Australia and Taiwan1990–1991Air Sea Broker, Zurich, Manager Far East1991Panalpina Corporate Head Office,Director Seafreight Division1998Managing Director Air Sea Broker(West Africa Division)2000COO (Chief Operating Officer) andmember of the Executive Board2002Regional CEO Africa/MiddleEast/Central Asia/CIS and member of the Executive Board2003Regional CEO Europe/MiddleEast/Central Asia/CIS (EMEA) andmember of the Executive Board

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Spotlight on thecar industry

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Automotive

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Today’s automotive business is characterized by volatile markets, global supply chains, myriad interfaces and time-critical delivery dead-lines. With a clientele featuring global leaders in the automotivemanufacturing and supply industries, Panalpina can draw on manyyears’ experience in mastering these challenges. >

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just-in-sequence with components from dif-ferent suppliers in a variety of countries.

Multiple goods chains“At the start of the production process youfind items such as radiators, braking sys-tems and fuel injection pumps, which them-selves comprise a host of individual compo-nents,” Wills continues. “These items fre- quently originate from different countries,in some cases continents, and have to reachthe factory – wherever this may be –promptly, in the exact sequence required forassembly and at minimum expense. Stock-piling vehicles is a thing of the past, andsuppliers are unable or unwilling to operatewarehouses. That’s why all manufacturingstages have to be precisely coordinated andproper allowance made for global shippingroutes, customs formalities, local regula-tions and so on.

Panalpina is notified of the orders sentby the OEM (original equipment manufac-turer) to its various suppliers (some 600companies in the case of one of Panalpina’smajor clients!). It is at this juncture thatPanalpina, in tandem with its in-house car-riers, takes the helm: it fine-tunes the inter-faces with suppliers, collects consignments,consolidates these at its hubs, handlesphysical shipments and delivers therequired items to the consignee at the

appointed time. Each of these discretesteps is standardized, electronically docu-mented and may be tracked by the clientaround the clock. The same proceduresnaturally apply to contracts executed forPanalpina’s many clients among the tier-1,tier-2 and tier-3 suppliers. A hitch at anysingle link in the chain will impair – and, atworst, interrupt – the entire productionprocess. Through its involvement from startto finish, Panalpina naturally shoulders ahuge responsibility!”

The core industriesNeedless to say, absolute familiarity with the relevant sectors is vital for successfullytackling such a challenge. This explainsPanalpina’s strategic focus on a group ofcore industries in which it has acquired in-depth expertise and offers tailored solutionsand real added value. Apart from automo-tives, these comprise high-tech, healthcareand oil & gas. Panalpina boasts extensiveknow-how and a proven track record in allthese sectors. It provides its clients with tai-lored solutions that capitalize on the com-pany’s core airfreight and seafreight servicesto generate added value. These activitiesare underpinned by a comprehensive KeyAccount Management System and a num-ber of Industry Competence Centers. Thelatter are virtual teams comprising Key

Automotive

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No sector is as susceptible to economic fluc-tuations as the global automotive business.This produces an exceptionally fast-movingmarket in which clients’ needs can changefrom one day to the next. Both vehicle manu-facturers and their suppliers suffer extremeprice pressure and apply exceedingly tightmargins to their costings. For a logisticscompany like Panalpina, success hinges onan in-depth knowledge of the market, thetimely recognition of trends and the ability totake proactive measures. Those who merelyreact to client’s demands will soon findthemselves lagging the field.

Hence Panalpina’s decision last year tooperate an additional DC10-30 flight, on itsown initiative, between São Paulo and Lux-embourg. The 65-ton increase in weeklycapacity was aimed at meeting the growingdemand in the Brazilian automotive sector.The expanded service supplements theexisting Boeing 747-F flights between Braziland South Africa. Via its Luxembourg air-freight hub, Panalpina offers the Brazilianautomotive industry reliable, flexible linkswith worldwide destinations.

“The automotive sector is all about mar-shalling thousands of products and numer-ous goods flows to ensure global coverage,”explains Michael Wills, Head of Panalpina’sVirtual Competency Center Automotive(VCCA). Production lines have to be supplied

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Account Managers plus operations andmarketing staff who pool and build on theirspecialist knowledge for the benefit of thewhole Group. Panalpina’s industrial know-how is also channeled into optimizing the ITsystems and infrastructure.

Together, these various componentshelp the company to understand the ins andouts of their clients’ business. Panalpinaknows the different players and how theyinteract. To provide clients with genuinesupport, it is essential to appreciate themechanisms that operate in their sector.The logistician’s primary task is to liaiseclosely with clients so as to monitor theirshifting requirements and react promptly.Moreover, clients expect to be providedwith a contact who knows their companyand its specific needs and whom they cantrust. This second factor should not beunderestimated: despite the pivotal roleplayed by price, particularly in the automo-tive industry, it is not the sole criterion indetermining the award of a contract. Asound relationship of trust between clientand logistics supplier is absolutely essentialfor successful collaboration. After all, theservices go far beyond merely transportinggoods from A to B, but span the entire supply chain – starting with the OEM’smaterial planning procedures and involvingnumerous players.

Comprehensive service portfolioApart from transportation, Panalpina’s services include order management, quality and quantity control, documentation anddocument inspection, interim storage, re-packaging and the supervision of all deliv-ery deadlines. Here too, the focus is on coreactivities, which is why Panalpina, with itsworld-spanning airfreight and seafreightnetwork, concentrates heavily on forward-ing-related supply chain management. Oneof Panalpina’s clients is German-based ZFFriedrichshafen AG, a world leader in theautomotive supply sector, for which it actsas preferred global service provider, han-dling airfreight and seafreight consign-ments between Germany, Mexico, USA,China and North Korea. Automotive supplierValeo, another global player who counts onPanalpina, provides top vehicle manu-facturers with a range of items includinggearboxes, air-conditioning systems, wind-screen wipers, cooling, lighting, security,electrical and electronic systems. Its princi-pal traffic flows are Asia-Europe, USA-Europe and Latin America-Europe.

Panalpina’s clearly focused proceduresare vividly illustrated by the Delphi Auto-motive Systems contract. Previously a sub-sidiary of General Motors, automotive sup-plier Delphi became independent in 1998.For Delphi, Panalpina is responsible for

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logistics, airfreight and seafreight on routesbetween North America and Europe, NorthAmerica and South America, Europe andSouth America as well as Asia and SouthAmerica. The annual freight volume runs tosome 100,000 consignments serving over300 Delphi sites on four continents. At itsautomotive logistics center in Detroit,Panalpina also provides numerous added-value services for the world’s largest pro-ducer of automotive accessories. Panalpinacoordinates the pick-ups and deliveriesrequired for daily operations, thereby ensur-ing that Delphi meets its production dead-lines. Panalpina also acts as coordinatorbetween Delphi and its suppliers andchecks that item numbers, quantities, carri-ers and deadlines comply with order speci-fications. These details are relayed electron-ically by Panalpina to the shipmentdestination, thus enabling the client tomake any necessary last-minute adjust-ments.

Another major client which Panalpinaprovides with comprehensive airfreight andseafreight services is German car-makerBMW. While its seafreight consignmentsare shipped around the globe, the airfreightservices are focused on Latin America, Aus-tralia, South Korea, Russia, Israel and China.Panalpina also acts as local service providerin Argentina, where it assumes >

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Automotive

Volker Sachse, Managing Director South EastAsia Area (Panalpina), Birgit Maier of BMWAsia and Peter Li of Beijing Oriental, a BMWpartner in Asia (from left to right).

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responsibility for all customs formalities,goods deliveries and nationwide distribu-tion. Consignments range from productioncomponents, spare parts, interior fittingsand motorcycles to printed matter.

Panalpina recently clinched a new BMWcontract for routes between Singapore andChina – a further testament to BMW’s utmost

confidence in its logistics provider. Singaporeis the site of a central BMW spare parts ware-house serving the Asian market. Panalpinawas commissioned to supply the BMW pro-duction plants in Beijing, Shanghai andGuangzhou with components from the Singa-pore warehouse and to handle direct deliver-ies to BMW dealers in China.

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Interview

Focus on Latin AmericaBeat Simon was recently appointed Regional CEO for the new LatinAmerica Region. As a keen observer of the South American marketsover many years, he is convinced that Panalpina’s commanding positioncan be further strengthened through adoption of a clear-sighted, client-oriented strategy.

Mr. Simon, as the newly installedRegional CEO for Latin America,where do your priorities lie?In the next few weeks, I plan to visit thevarious Business Units and Areas and set upaction plans with the local teams – or adaptthe existing ones to current needs. I’ll alsotake the opportunity to get to know custo-mers personally, and meet as many employ-ees as possible. In the near term, I shall alsobe involved in transferring the Regional Cen-ter from Miami to Brazil.

Why the move?Miami's central location made it an idealsite for the former Americas Region thatspanned both North and South America.With the division into two separate Regions,however, there was no reason for us to staythere. The new São Paulo site was singledout with the help of a detailed study thatanalyzed the principal markets and Panalpi-na’s specific needs in Latin America. Whenthe results were evaluated, Sao Paulo wasthe clear winner. Both the relocation of ourheadquarters and the creation of the LatinAmerica Region reflect our clear commit-ment to the Latin American market.

How will our clients benefit from thereorganization?

In some ways, English-speaking Americaand Latin America are worlds apart – notleast because Latin America embraces sev-eral countries and complex markets thatdemand in-depth local knowledge. We be-lieve we can provide our Latin Americanclients with a more efficient, clearly focusedservice by pooling their interests in an inde-pendent Region with directly representationat Executive Board level.

Who exactly are your clients?The SME segment traditionally figures veryprominently in Latin America, so we workhard to provide these companies with a first-rate service at competitive prices. Yet, I alsosee enormous potential in the key accountsector. Practically all Panalpina's globallyoperating clients maintain organizations oftheir own in Latin America, and we play avital role in partnering these companies.Take the automotive and high-tech sectorsin Mexico and Brazil, for instance.

Is the market more import- orexport-oriented?Although imports currently exceed exports,exports are on the rise – for instance fromBrazil, Mexico, Colombia and, to a lesserextent, Panama – as a consequence of thefree trade area. Moreover, the progressivelifting of trade barriers is increasingly encou-raging South American countries to buy pro-ducts from other Latin American states. ForPanalpina, with one of the most extensivedistribution networks and service portfolios,this is a promising market.

Are you satisfied with the Region’sresults?Overall, the operating result is not satisfac-tory. Some markets within the Region –Mexico and Argentina, for example – haveperformed very well, while others are not yetup to expectations. With the Latin American

markets fundamentally volatile, it’s impor-tant to have lean structures and keep fixedoverheads low so that we can respond swift-ly to changing political and economic condi-tions. One example is Argentina: prior to thedevaluation of the peso, we restructured theorganization together with local manage-ment and have emerged from the economiccrisis stronger than we were before. Panalpi-na is a global corporation that has shown,time and again, that it doesn’t just “go withthe flow” in booming markets but can alsooperate successfully when the climate ishostile.

Curriculum VitaeName Beat SimonMarital status married, one childYear of birth 1966Nationality Swiss 1982–2000Trained forwarding agent and severalmanagement positions as an interna-tional logistics provider in severalcountries, among them Switzerland,France, Mexico, Colombia and Brazil. 2000–2001Joined Panalpina Management Ltd.in Basel (Switzerland) as Senior VicePresident – Corporate Affairs LatinAmerica2002–2003Panalpina Americas Services Inc.,Miami (USA), Head of Finance/Regional CFO – Americas Region2003Regional CEO Latin AmericanRegion, Miami (USA), and member ofthe Executive Board

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Panalpina’s commitment to West Africadates back to the 1950s, when it com-menced operations in Nigeria. In the courseof the years, organizations were set up incountries such as Gabon, Congo, Angola,Ghana, Cameroon and Equatorial Guinea. Inall of these places, Panalpina focuses prim-arily on services linked to the internationaloil business, a field in which it has in-depthspecialist knowledge and where it enjoysthe support of – and works together closely

with – ASB Oil & Gas and the global Panal-pina Oil & Gas organization. Its customersinclude, among others, oil, gas and seismo-logical companies, oil rig operators and theirsupply ships, drilling specialists, suppliers,construction and engineering companies, aswell as shipping companies running sched-uled, tramp or tanker services. This varietyalone indicates the demanding tasks facinga logistics enterprise and the broad know-ledge base expected. Panalpina provides not

only forwarding and transportation but alsoa full range of agency services; it organizesthe provisioning of oil rigs and productionsites, and handles project-related andheavy-lift shipments.

Moreover, ASB Oil & Gas also runs whatit calls the Coast Link Service. This involvestwo ships specially adapted to operating inshallow waters, “Merlin” and “Merlin 2“,which have cold storage space and areequipped for roll on-roll off consigments.

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A bouquet of servicesfor West AfricaPanalpina is an important player in the oil and gas industry of western Africa, providing a wide range of services that goes well beyond traditional forwarding activities.

Oil&Gas

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With these two vessels, Panalpina regularlysupplies drilling rigs with spare parts, gene-rators, drinking water, food and fuel. Cargocan be reloaded at sea for immediate de-livery to the shore, but the vessels can alsoland almost anywhere thanks to their bowloading ramps.

Panalpina’s combined air/sea service“African Star” is another unique offering.Tailored primarily to the needs of its Oil &Gas customers, this service links West Afri-ca’s coastal regions to the Group’s global air-freight network.

Providing such services in a customizedand seamless fashion requires expertise inlocal customs and conditions, specialistknowledge of the industry concerned, and aglobal air, land and sea network. Panalpinameets these requirements thanks to its glo-bal experience and its ability to harness theGroup’s combined resources: its central pro-jects division, on-site professionals, localmobile task forces and global air and sea-freight networks, plus its heavy haulage spe-cialists, customs experts and its highly-developed IT infrastructure featuringelectronic order-management platforms andInternet-based consignment monitoringsystems.

A la carte servicesOne of the services on offer that calls for in-depth expertise and international coopera-tion is Marine Chartering. Here, too, Panal-pina has been a leading player for over 40years and is equipped to put together custo-mized packages, whether for charter agree-ments over varying periods of time or forindividual consignments. Long-standingcontacts with ship owners ensure that thevessel selected will always be appropriate tothe particular cargo.

The range also includes customs clear-ance plus comprehensive packing andwarehousing management, which in turnencompasses purchase order and vendormanagement and consignment monitoringsystems down to line item level. Panalpina isa fully integrated part of the supply chain andis constantly in touch with manufacturers,suppliers, builders, contractors and endconsumers. As an added-value service, Pan-alpina even sends staff members as implantsto work onsite with customers. Other serv-ices regularly provided include: project con-sulting, transport engineering, building siteand equipment inspections, transport coor-dination, inland waterway services, and

supervision of loading, unloading and tran-shipment of heavy and unwieldy freight. Allsaid, Panalpina supports its customers wher-ever it can along the entire supply chain.

Agency and husbandry servicesThe agency and husbandry services Panal-pina provides for off-shore oil rigs in WestAfrica are vital for their smooth functioning.The assignments vary from comprehensiveagency mandates for ships and drilling sitesto the delivery of water and bunker supplies,freight inspection, the organization of tran-shipment and warehouse capacity at harbors,and import and export clearance. Panalpinaalso procures travel documents and workpermits for employees of oil production orprospecting firms. Furthermore, it makeshotel bookings and travel arrangements,looks after newly arriving personnel andassists with oil platform crew changes. Theplatforms themselves are supplied with allthe necessities of everyday life.

“Offshore services are a key part of ouractivities in Africa and require a great dealof flexibility and commitment. As far asagency services for ships engaged in seis-mological activities are concerned, we arethe clear market leader in Africa,” explainsFrank Bichowski, Senior Vice PresidentBusiness Development at ASB Oil & Gas.“But such a position is not acquired over-night. It takes a lot of experience and indu-stry expertise. We are at our clients’ disposalaround the clock. If for instance an impor-tant part on an oil rig is missing, we need toreact immediately. We simply can’t afford tolet the customer wait; he has to be able torely on us 100%.” Although the actual ship-ping of cargo represents a fairly small part of Panalpina’s activities in this connection, the company sometimes performs ad-hoc oremergency deliveries or even charter an air-plane at short notice, Bichowski adds. Hemaintains that, with offshore assignments,the commitment of each individual staffmember is even more crucial than with “tra-ditional” forwarding services. “People makeor break it,” he says, putting it in a nutshell.“For the customer, Panalpina is a contactthat is available and ready to act at any time.This places great demands on the know-how and dedication of our local staff. Clientsin this sector are, quite rightly, very deman-ding, as there are invariably large sums ofmoney at stake, and our customers areresponsible towards their customers for thesmooth execution of orders. If just one little

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Oil&Gas

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link in the chain fails, this can no longer beguaranteed. This is also why,” Bichowskiemphasizes, “onsite customer service provi-ded by our local staff is so vital to the func-tioning of the whole. These are the peoplethe customer becomes acquainted with –and trusts.”

“Trust, reliability, security”A solid foundation of trust must be estab-lished before a client will transfer so muchresponsibility to his logistics partner. StephenHoare of Fugro, a Panalpina customer, con-firms this: “Reliable handling, honesty, trustand efficiency are, to my mind, the corner-stones of a good working relationship. Iexpect Panalpina to take our interests asseriously as if they were its own. For us, thisincludes keeping Panalpina fully informedand updated – even if it means passing onbad news once in a while.” Another crucialpoint according to Hoare – besides the costs,of course, – is familiarity with local condi-tions. It’s no use people putting their backsinto it only to stumble over their ignorance ofsome local custom or regulation. However, hesees Panalpina as well integrated in everycountry it operates in. “Moreover, the com-pany does not simply react when orderscome in or a situation changes.” Instead,customer support is provided proactively.Stephen Hoare also appreciates the fact thatPanalpina does not make empty promises tosecure an assignment. “Panalpina has alwaysproved capable of delivering what it offers.”

Deepwater construction vesselPanalpina has been assigned an agencymandate by Heerema Marine Contractors(HMC) for its deepwater construction ship,SSCV Thialf (SSCV stands for Semi-Submer-sible Crane Vessel). This vessel is employedfor under-water construction and installa-tions in connection with deep-sea explora-tion and drilling for oil and gas. Weighing136,709 gross registered tons and with alength of 200 meters, the Thialf can operateboth its cranes simultaneously and lift up to14,200 tons. It has a dynamic positioningsystem that enables it to precisely maintainits position even in the deepest water – andeven when it is unable to use its twelvehuge anchors, each of which weighs 22.5tons. To steer the ship, this system uses dataobtained from the Global Positioning System(GPS). Six thrusts that can be rotated around360 degrees ensure that the SSCV Thialfmaintains its position even in rough condi-tions.

As this ocean giant’s agent, Panalpinahas taken on a number of tasks. It needs toensure that the requisite permits have beenobtained and settles all further legal matters.It also organizes crew changes along with allthe minutiae involved, and acts as a point ofcontact for the local authorities.

Naturally, Heerema places great empha-sis on all security-related issues. In this con-text, Panalpina – as the agent responsible –has defined specific health, safety and envi-ronment (HSE) standards for crew members

in the harbor and the transit area to the air-port in Angola. Before the mandate wasassigned, all existing and potential riskswere identified, discussed exhaustively withthe customer and compared with Panalpi-na’s own HSE organization. Panalpina hasan HSE concept in compliance with ISO14001 and OHSAS 18001 standards thatforms an integral part of the company’squality system. Adherence to this concept isstrictly mandatory for all involved parties,whether Panalpina staff members or em-ployees of a sub-contractor.

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From left to right: Frank Bichowski (far left) and René Werlen (3rd from left) of ASB Oil&Gaswith their colleagues from Panalpina Cabinda, Angola: Fernando Sardinha, Geraldo Mbachi(at front), Farah Y. Saba, Feliciano Mualo and Fabiao Pambo.

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Pioneering spirit andbold innovationPanalpina and Luxembourg-based airfreight carrier Cargolux haveworked together in a close partnership for more than three decades. In this time, their far-sighted and open-minded policies have spawned a wealth of innovative products and services.

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Partners

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Panalpina and Cargolux share a single-minded approach to meeting the demandsof the marketplace. That neither companyshrinks from employing unconventionalmeans to achieve innovative solutionsmakes them a winning team. Yet, the twocompanies are mindful at all times of theirown particular goals and their duty to securea first-rate service for their clients. NickKroebl from ASB-Air cites one example ofthe synergies achieved: “From the 1970sonwards, we adopted a policy of shippingthe goods handled by our in-house carrierASB-Air exclusively by freight-only aircraft.At about the same time, Cargolux opted fora fleet strategy based on the Boeing 747freighter. This, of course, helped us both:while Cargolux was able to rely on ourfreight, we were guaranteed ample capa-city.” “We often set up our own stationsabroad on the strength of Panalpina’s pro-jected base loads on specific routes,” addsUlrich Ogiermann, the airline’s Presidentand CEO. “Panalpina’s reliability and Cargolux’s flexibility have always proved apowerful combination.” According to Ogier-mann, deals between the two companieswere quite often settled by handshake: “Weboth embrace a similar business philosophyand don’t see the point in unnecessarybureaucracy. The markets expect efficientdecision-making and not interminable nego-tiations!”

Innovation also requires the acceptanceof entrepreneurial risk – something thatPanalpina has never shunned where pros-pects were bright. “We have always takenthe stance that we should share in the

responsibility for new services and not sad-dle the carrier with the entire risk,” explainsNick Kroebl. “Cargolux was ready to provideaircraft compatible with our needs and weduly undertook to market the capacity at ourown risk. Should we have failed to secureadequate freight, Panalpina, not Cargolux,would have borne the loss.” Though out-siders sometimes regard Panalpina and Car-golux as inseparable, it is not just a matter ofswapping favors. Behind every single trans-action is the aim to achieve a clear-cut win-win situation, as Pierre Wesner, CargoluxVice President, Europe, Middle East &Africa, emphasizes: “Panalpina knows itsmarkets and its clients, and expects promptand creative solutions from its partners.Panalpina is prepared to accept certain obli-gations regardless of whether existing ornew products are involved. By the sametoken, we – by virtue of our network – pledgeto deliver the required service. That way,both partners benefit in equal measure. Andthat’s what counts.”

This is a point that Nick Kroebl fromASB-Air is quick to hammer home: “Apartfrom being open for new ideas, Cargoluxcombines extreme flexibility with a sensitiv-ity to market demands. What is particularlynoticeable, if you look back over the past 30 years, are the many areas in whichPanalpina and Cargolux have grown in tan-dem, due to our joint strategies for specificroutes. At the same time, each partner hasendeavored to gain an independent footholdin the market.” Where it was expedient, thetwo companies went separate ways. Forexample, Panalpina today offers a regular

Ulrich Ogiermann, President and CEO of Cargolux.The Cargolux head office is located in Luxembourg.

service to many destinations in Africa in col-laboration with other airline partners, whileCargolux carries goods for other forwardersalong the same routes.

Beginnings in African tradeThe association between Panalpina andCargolux dates from the early 1970s. “It wasthe time of the Nigerian oil boom, whengoods traffic soared and capacity was at a premium. To secure a swift and reliableservice for those clients operating in Nigeria,Panalpina, unlike its competitors, saw littlepoint in vying for the free freight space.Instead, it decided to charter whole aircraft,market the capacity at its own risk andassume control of the goods flows. With thisin mind, it approached Cargolux, formed in1970, which offered freight-only air links byCL-44 and DC-8 from its Luxembourg base.As Pierre Wesner points out, “In chartering afreighter, Panalpina turned out to be a veri-table trailblazer. No freight forwarder hadever ventured anything of the kind before.”Even at that time, flexibility, innovation andreliability were the cornerstones of Panalpina’sand Cargolux’s pioneering achievements.

This also paved the way for the launch ofPanalpina subsidiary Air Sea Broker, nowASB-Air. “With the African services we created a business model whose key planksremain in place to this very day,” declaresNick Kroebl. “At the Luxembourg hubPanalpina had direct access to the goodsflows. Of course, this also meant increasedresponsibility, as there was no carrier toshoulder the blame if anything went wrong.But with a reliable partner like Cargolux, >

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we had no qualms about taking that kind ofrisk.”

The collaboration between Panalpinaand Cargolux progressively expanded toembrace further links – for instance, theroute from Europe via Houston and Mexicoto Miami, where Panalpina set up its distri-bution center for Latin America. As NickKroebl recalls, “It was a novelty at the timefor Latin America to be served by widebodyfreighters.” As the alliance grew, so didPanalpina’s European hub at the Luxem-bourg terminal. Moreover, the developmentof a pan-European road transport networkprovided every Panalpina branch in Europewith a direct link to Luxembourg. Cargolux,for its part, focused its fleet strategy exclu-sively on the freight-only Boeing 747, anideal solution for large airfreight consign-ments. “There have, of course, been differ-ences of opinion along the way – that’s noth-ing out of the ordinary,” Ulrich Ogiermannconcedes. “But, as I see it, even such dis-agreements were productive because of thehonest and frank tenor of the discussions.Neither Panalpina nor Cargolux indulged inany political or tactical maneuvering. In fact,the two companies are very similar in theway they do business.”

Close collaboration with LuxairPanalpina today serves all continents fromits Luxembourg base by means of full char-tering and block-space agreements. The air-line Luxair, which was founded in 1962 andholds a 34.9% stake in Cargolux, is its freight-

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Partners

Cargolux> Cargolux Airlines International wasformed in 1970 by Luxair, the SalenShipping Group, Loftleidir Icelandicand private Luxembourg-basedinvestors. The maiden CL-44 flight toHong Kong took place in September.> 1973 saw the first DC-8 added tothe existing fleet of five CL-44s. The new headquarters, with twohangars, was inaugurated in 1975.The CL-44s were gradually phasedout, the first B747-200F beingordered in 1978 and delivered in1979. Cargolux opted for a fleet strat-egy based exclusively on the Boeing747 freighter. The last DC–8 wastaken out of service in 1984. The route network progressivelyexpanded, particularly in the Far East and North America.> The first two B747-400Fs weredelivered in 1993. Cargolux was thefirst airline worldwide to operate this modern aircraft.> 1996 saw the inauguration of thenew CargoCenter (annual capacity:500,000 tonnes) at Findel Airport.By 1997, Cargolux served 31 des-tinations worldwide and operated

66 branches in 40 countries. The com-pany had joined the Association of European Airlines (AEA) and theInternational Air Transport Asso-ciation (IATA). By the end of 2001, thenumber of destinations served hadrisen to 49.> In 2002, the Cargolux fleet com-prised 12 state-of-the-art B747-400Fs,and a further Boeing was on order.Turnover stood at USD 807.496 m.The company’s headcount totaled1,342, over a thousand of whomworked in Luxembourg. Staff from 33 different nations were employed atthe head office.> Cargolux occupies third spot amongthe major European airfreight carriers.In terms of freight ton-kilometers, itranks ninth worldwide.> Cargolux provides scheduled airport-airport airfreight services along withfull- and part-charter packages. Itsproduct portfolio is geared to for-warding and logistics companies.Panalpina is Cargolux’s largest client todate. Cargolux also services B737, B747,B757 and B767 aircraft and maintainsan extensive road-feeder network.

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handling partner at the Luxembourg Cargo-Center. The over 30-year partnership be-tween Luxair and Panalpina was furthercemented at the start of 2003 whenPanalpina acquired a 12.1% stake in the air-line. Luxair also handles Panalpina’s con-signments at the new CargoCity Süd logis-tics center at Frankfurt Airport. The longhistory of successful collaboration with Car-golux is, in Nick Kroebl’s opinion, largely dueto Luxair’s enduring and vigorous supportfor Panalpina’s operations at the Luxem-bourg site.

Client benefit as the key issueClient focus dictates all activities at bothPanalpina and Cargolux. In the words ofUlrich Ogiermann: “We offer airport-airportservices and deliver flexibility and quality.That’s what matters to our clients – andPanalpina is our largest single customer.”“We’re not looking to develop products fortheir own sake or to bill clients for servicesthey don’t even need,” adds Robert Van DeWeg, Cargolux Senior Vice President, Sales& Marketing. Cargolux offers a clearly de-fined product portfolio and seeks to supportits clients in their business activities. It isthus committed to the best-in-class princi-ple, collaborates worldwide with those part-ners that best meet the client’s needs andmakes no attempt to tackle everything on itsown. Cargolux has always operated and willcontinue to operate in the business-to-busi-ness sector to provide forwarders with air-freight services. “We have not the slightest

ambition to diversify into our clients’ busi-ness areas,” stresses Robert Van De Weg.“Our expertise resides in the operation andmaintenance of airfreight links. We maintaina close dialogue with our clients and arecapable of responding swiftly to newdemands. That’s our core business!”

As Nick Kroebl sees it, quality, flexibili-ty, open communication and quick turn-around times are the be-all and end-all in theairfreight sector. “We can totally rely on theCargolux route network and flight scheduleswhile, at the same time, being fully equip-ped to implement new solutions at shortnotice – two exceedingly crucial factors!”

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Cargolux, a strong partner!At first sight, Panalpina and Cargoluxmay not appear to have much incommon. If we take a closer look,however, we see that values such asentrepreneurial spirit, enthusiasm for risk-taking and pioneeringachievements loom large in bothcompanies’ histories. When Cargolux was founded in theearly 1970s, Panalpina was alreadyheavily involved in the oil and gasbusiness in West Africa – notably inNigeria, which was enjoying an oilboom. At this time freight capacitywas in short supply, and Panalpinawas anxious to find solutions to meet its customers’ needs. Gerard W. Fischer, our present Chairman, took a different approachto the competitors: Why haggle overspare freight capacity and risk delayswhen we could charter a whole air-craft and control the freight flowsourselves? While no-one before himhad dared to follow this path, GerardW. Fischer knew that he could offer aservice tailored to customers’ require-ments. Together with the fledglingcompany Cargolux, he launchedfreight-only flights to Nigeria, thuslaying the foundations for what wasto become the Panalpina Group’shighly successful capacity manage-ment system. Over the years,Panalpina and Cargolux began coop-erating on many other routes, whichare featured in this issue. The com-mon values of openness, innovationand entrepreneurial spirit ensuredthat the partnership would provedurable – and guarantee that it willlast for many years to come.

Bruno Sidler, CEO

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the sole forwarding partner for samplesshipments using Novartis’s NOMEX appli-cation. Such consignments are sent bycourier, heavy-goods vehicle, air or sea,depending on volume and urgency.

Panalpina is responsible for the entireforwarding chain – from the arrangement of shipments to customs clearance anddelivery to the consignee. In 2002, the Group handled 10,354 consignments, weigh-ing a total of 10,807 tons, for Novartis Pharma.

Special shipmentsOf particular note are the ten or so weekly“cooltainer” air consignments shipped byPanalpina for Novartis Pharma in enviro-tainers. These freight containers, whichhave battery-operated thermostats for con-tinuous temperature regulation between -20°C and +20°C, use dry ice as the coolingmedium. They are chiefly employed for theshipment of sensitive pharmaceutical prod-ucts, such as vaccines, which need to bekept at a constant temperature. The goodsare loaded directly into the special contain-ers at the Novartis plant and shipped to theconsignee’s warehouse without a break inthe cooling chain.

In developing and implementing itsglobal integrated logistics services, thePanalpina Group concentrates on four coresectors: High-Tech, Automotive, Oil&Gasand, since the start of 2003, Health Care.Over time, Panalpina has acquired tremen-dous expertise in these industries, which isnow being pooled in competence centers.

Panalpina is currently seeking to ex-pand business in the health care sector andalready serves a number of leading pharma-ceutical companies as both airfreight/sea-freight forwarder and all-round logisticssolution provider. In geographical terms,Panalpina’s health care operations are fo-cused on Switzerland and the USA. A typi-cal pharmaceutical client is global playerNovartis Pharma (see box).

Airfreight and seafreight shipmentsPanalpina Switzerland has partneredNovartis as forwarder and logistics providersince the pharmaceutical giant’s formation.The main goods flows are between Switzer-land and the USA. Some 80% of the freight– basic materials for medicinal products –is shipped by air, the remaining 20% bysea. The proportion of seafreight consign-ments is, however, on the rise. Panalpina is

In safe handsThe health care sector is now a major focus of Panalpina’s operations.The Group’s successful collaboration with the pharmaceutical industryis epitomized by Panalpina Switzerland’s long-standing partnership withNovartis Pharma and its predecessor companies, Sandoz and Ciba-Geigy.

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Novartis PharmaNovartis Pharma, a division of theNovartis pharmaceutical group basedin Basel, Switzerland, is a globalleader in the research, development,manufacture and marketing of pre-scription medicines. The pharmaceu-tical division aims to supply patientsworldwide, via health care profes-sionals, with innovative, safe andeffective products and services.Novartis offers medication for thefollowing therapeutic areas: cardio-vascular disease, metabolic disorders,endocrinology, oncology, hematology,neurology, transplantation, immunol-ogy, dermatology, respiratory dis-ease, rheumatology, bone disorders,hormone replacement therapy andophthalmology. Novartis Pharma has a global presence, with some 80 group companies in over 140 coun-tries. Group sales in 2002 totaledCHF 21,000 m.

>

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Health Care

Long-standing associationPanalpina already partnered the two phar-maceutical companies, Sandoz and Ciba-Geigy, that merged to form Novartis in 1996.Karl Tschui from Panalpina Basel, who isresponsible for the Novartis contract, canlook back on a long and profitable collabora-tion: “Our partnership with the Basel-basedchemical and pharmaceutical industriesstretches back decades. The mutual trust weestablished with Sandoz and Ciba over theyears was, of course, unaffected by the mer-ger and the hiving-off of the chemical divi-sions to form Clariant, Ciba SC and Syngenta.”

And what is the key to successful part-nerships in the pharmaceutical sector?“Security is undoubtedly the top priority,”answers Pascal Kaltenrieder, Panalpina’s Sea-freight Export Manager in Basel (Switzer-land), one of Novartis Pharma’s major pro-duction sites. “The freight is valuable andsensitive. An unbroken logistics chain withsecure carriers is imperative,” he explains.“The global network is another crucial fac-tor: Novartis opts for logistics partners thatoffer single-source responsibility from col-lection to delivery, including customs for-malities and all the related documentation,”Kaltenrieder adds. “Not to forget the time

factor: with the just-in-time system weemploy, delivery deadlines are sacrosanct.”

Electronic link via e-hubTo further simplify collaboration and proce-dures, the new e-hub paves the way for apurely electronic data flow between Panalpinaand Novartis. Novartis sends its orders electronically to the e-hub, which is linkedto Panalpina’s tracking and reporting sys-tem Intrac. The entire forwarding operation,including invoicing, will then be controlledfrom this online platform.

With the establishment of an industrycompetence center, Panalpina now intendsto pool and develop the know-how acquiredfrom its many years of experience in thepharmaceutical sector. Chris Engeler, Busi-ness Unit Manager at Panalpina Basel, en-visions the future of Panalpina’s health careoperation as follows: “We aim to clinch newpharmaceutical contracts by exploiting ourknowledge at a global level. The relativeuniformity of industry and market will be amajor boon: we already speak the languageof our future clients.”

Karl Tschui, Chris Engeler and Pascal Kaltenrieder of Panalpina Basel.

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continuity and on acquiring and expandingboth specialist know-how and interpersonalskills. It is ultimately our customers whobenefit most from this approach: they aresupported by highly trained professionals.

As a leading logistics provider, training andprofessional development are a top priorityfor Panalpina. We have developed our ownlearning platform: Panacademy, a global pro-gram that encompasses specialist trainingplus courses for developing managementskills. One goal of the Management Develop-ment Program is to make our managers fit tomanage the company, and to keep them thatway. The other is to identify talented indi-viduals within the company who show de-velopment potential and to fast track thesepeople so that they can take up vacant man-agement posts internally, thus retaining theirtalents in the company.

From the basics to training for top managersHow does Panalpina’s Management Devel-opment Program look exactly? It consists ofthree cycles of seminars: In the Basic Man-agement Program, “Steering Success”, man-agers are trained more or less on a one-to-one basis. Skills developed in this phaseinclude leadership, delegating, communica-tion, time management or conducting em-ployee appraisals. The newly launched pro-gram “Navigating our Future” (see box text)is aimed at “High Potentials” – the staff sin-gled out for fast-track development. Aspir-ing managers are proactively cultivated andtheir leadership skills honed so that they areproperly prepared for their future tasks.Issues here include strategic thinking, tac-

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Cultivating tomorrow’s leadersThere are two key aspects to Panalpina’s management developmentprogram: ongoing professional training on the one hand, and personaldevelopment – or the selective acquisition of management skills – on theother. Our internal training and development schemes focus on bothaspects, as we believe a holistic approach is the best way of building aprofessional team capable of assuming key positions within the company.

Human Resources

Talent smithsEmployees with higher than averagedevelopment potential are a rare commodity. That’s what makes it sodifficult to identify such “high poten-tial” candidates. The main criterionhere is an excellent track record.Another important aspect is that theprospective managers are mobile, i.e. they are prepared to work inanother country. Ultimately it is anemployee’s qualifications that decidewhether he is accepted into our inter-nal Management Development Pro-gram. Panalpina conducts an annualPerformance Evaluation Assessmentand Review (PEAR) to evaluatewhether an employee would make asuitable candidate for the program.

tics and change management, for example.We also run an Executive Program for seniormanagers.

Putting theory into practiceWe make sure that the seminars don’t con-fine themselves to theoretical exercises butthat the material learnt is actually put intopractice. Ultimately the aim is to communi-cate know-how and skills that can be usedin the course of normal business and there-fore benefit not only the individual employeeand the company as a whole, but also ourcustomers.

At Panalpina, “soft factors” count just asmuch as hard facts. These include thePanalpina values, which are taught as partof these seminars. The Spirit of Panalpinaplays a major role in creating a single, globalworkforce that functions as a winning team– and is retained for the future.

Communicating skills and valuesSo how does a potential manager’s internalcareer path tie in with the Panacademy cur-riculum? Acceptance into one of the pro-grams is not a cast-iron guarantee for a rapidclimb up Panalpina’s corporate ladder. Toget ahead, individuals must also demons-trate unwavering commitment in theireveryday work. The Management Develop-ment Program is a good platform for com-municating and reinforcing Panalpina’s val-ues and skills. The emphasis here is on

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Navigating our Future“Navigating our Future” is a modularprogram spread over two years andis designed to develop managementtalents within Panalpina. Admissionsstart this year. The program startswith “Focus I”, which assesses thecurrent professional situation of thecandidates nominated for the TalentPool by their line managers. Thisreview takes into account the opinionand development plans of line man-agement, the HR managers and thecandidates.The format of the Panacademy courseis as follows: candidates attend fourseminars over a period of 16 to 24months. The first block deals withbusiness strategies. The second mod-ule looks at business processes. The third seminar focuses on teambuilding, while the fourth looks at managing employees. This isrounded off by “Focus II”, where theHR manager once again sits downwith the candidate to review the current situation, in order to decide –together with the line managers – on the next career steps.There are two sides to professionaldevelopment: On the one side candi-dates undergo a career developmentprogram while on the job, and on the other they acquire managementskills in the seminars. The employeeis supported in the program by bothline management and HumanResources.

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Worldwide

An ideal matchSouth Africa Following 30 years of intensive cooperation,Panalpina CEO Bruno Sidler and Safcor Panalpina Chairman Philip Womersley share the same view: they’ve got a winning formula. Since 1973, a close partnership has formed betweenPanalpina and the South African partner, and since August 2000the two firms have traded under the name Safcor Panalpina. Even though there are no equity links between the allied compa-nies, Safcor Panalpina is a fully fledged member of the globalPanalpina Group. Since November 2001, Renfreight – which, likeSafcor, is a subsidiary of the listed South African Bidvest Group –has also been part of Safcor Panalpina.

Safcor Panalpina is now market leader for traffic to and from SouthAfrica. It offers its customers the full range of logistics servicesfrom a single source. The big advantage of this long-standingcooperation is that it affords access to a comprehensive global network while still being firmly anchored at the local level.The 30th anniversary was celebrated on August 7, 2003 with GolfDay, an annual customer event. At this occasion, Panalpina CEOBruno Sidler, Panalpina Regional CEO EMEA (Europe, MiddleEast, Africa, Central Asia, CIS) Jörg Eggenberger, Safcor PanalpinaChairman Philip Womersley and Pete Williams, Safcor PanalpinaManaging Director, together with their management teams, welcomed some 250 guests at the Royal Johannesburg Golf Club.In addressing the guests, both Sidler and Womersley emphasizedthat the partnership goes far beyond being just a “marriage of convenience” between two businesses.

Panalpina CEO Bruno Sidler and Philip Womersley, Chairman Safcor Panalpina.

The Number 1Brazil Panalpina Campinas has been awarded the Fenix trophyfor 2003, singling it out as the best forwarder in the area aroundCampinas – a Brazilian city that is home to numerous high-techand automotive companies. Panalpina had been the runner-up forthis award in the preceding years, but has managed to enhanceits performance still further. The trophy is awarded on the basis of the results of a market survey undertaken among customers andforeign trade representatives in Campinas, the two main criteriabeing customer satisfaction and general recognition.

Delighted with the award (from left to right): Gilberto Zanon, head ofGlobal Accounts Panalpina Brazil; Marcelo Franceschetti, ManagingDirector Panalpina Brazil; Eliane Santos, head of the Campina Business Unit; Mauricio Arnold, Head of Marketing & Sales PanalpinaBrazil.

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Belgium Anyone who looks up Panalpina Voeren in the searchengine Google will get quite a surprise. On the one hand they willfind a website created by logistics specialist Panalpina presentingits four Belgian locations, one of which is Voeren. But they will alsobe taken to a bus timetable featuring bus routes 39b and 39c. Why is that? It’s because the bus stop in front of the Panalpinaoffice in Voeren – an agglomeration of six villages in the Provinceof Limburg, close to the Dutch border – has been named after thecompany. Quite an honor for our logistics firm!

500,000 TEUsGermany Panalpina has been working closely together with theAnglo-Dutch shipping company P&O Nedlloyd (PONL) for someyears. The event was celebrated in the presence of Barry Williams,Executive Director of PONL. This prompted Thomas Eisenblätter,CEO of Panalpina’s in-house carrier, to highlight the role of Panal-pina’s shipping-company partners: “Our carriers aren’t just suppli-ers. They are true partners who are instrumental in our success. To provide our seamless seafreight solutions, we team up with anumber of hand-picked, highly reliable shipping companies likeP&O Nedlloyd that can guarantee impeccable quality. The smoothfunctioning of our capacity management system also hinges onworldwide coverage and availability of freight capacity at all times– criteria that PONL meets superlatively.”

Korea In November 2003, Panalpina Korea Limited celebrated its25th birthday. Originally a trade representation with a three-strongstaff handling imports from Europe and the USA, Panalpina Koreanow, 25 years later, boasts a headcount of 90. The company has its own branches in Seoul, Pusan and Incheon and is additionallyrepresented by two agents. Focusing on airfreight and seafreightservices, it ranks among the top ten logistics providers in Korea.

Thomas Kaul, Barry Williams, Thomas Eisenblätter, Michael W.Messchaert, Raymond Tsang (front), Jörg Twachtmann, WilhelmDohrmann, Gerd W. Kux (middle), Matthias Poche and Andre Toet(back row, from left to right) were present in Hamburg to mark the loading of the 500,000 th TEU.

Lars-Ola Gunnarsson, Regional CEO Asia-Pacific, Peter Ziegler,Managing Director Korea and Panalpina CEO Bruno Sidler (center of picture, from left to right) met with representatives of PanalpinaKorea to celebrate the Korean subsidiary’s 25th anniversary.

What’s in a name?

Toasting 25 years of Panalpina Korea

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Worldwide

Angola Logistics provider Panalpina has operated in Angola since1984. The local head office is in the capital city, Luanda. GivenPanalpina’s success in steadily expanding its business in thesouth-western part of Africa – it offers seafreight, airfreight andlogistics solutions for the oil industry – a new building has nowbeen constructed to accommodate not only the Angolan HQ butalso the Luanda branch office and a warehouse.At the official inauguration ceremony in the late summer,Panalpina CEO Bruno Sidler, the former Managing Director ofPanalpina Angola, Carlos Magalhaes, and the Managing Directorfor the Area Angola, Congo and Gabon, Monique Gubler,addressed some 150 guests. These included representatives of theAngolan government plus seafreight and airfreight partners insouthwestern Africa, Panalpina customers and local Panalpinamanagement staff. In their talks, the three top managers empha-sized the growth potential of Panalpina Angola, for which the newbuilding – and the steady expansion of the national organization’scapacity – would provide a sound basis.

Capacity expanded

Traffic hubGermany After a construction period lasting five months, the newhall at Frankfurt Airport’s Cargo City South was completed, enab-ling Panalpina to move into its new forwarding center. The 14,000 m2

transhipment terminal has 46 loading bays for trucks, plus specialwarehouses for high-value and refrigerated freight and a separatezone for hazardous goods. The integrated office complex coverssome 2000 m2. About 150 Panalpina employees work at FrankfurtAirport, handling some 130,000 tons of freight each year.The new site means that Frankfurt is joining Luxembourg andParis as one of Panalpina’s three key European airfreight hubs. Itplays a pivotal role in the Group’s plan to build up a worldwidesystem of hubs and subhubs.

September 25, 2003 saw the official inauguration of the newPanalpina Center at Cargo City South. About 400 guests – repre-sentatives of the Frankfurt airport authority Fraport AG and of allthe major commercial carriers, along with Panalpina managers –joined in the celebrations. A tour of inspection was organized topresent the buildings to the guests. In the speeches they deliv-ered, Panalpina CEO Bruno Sidler, Remo Eigenmann, ManagingDirector of the in-house carrier ASB-Air, and Professor ManfredSchoelch, Vice Chairman of Fraport AG’s Executive Board, empha-sized Frankfurt’s significance as a strategically important locationfrom which freight flows can be readily managed – and singled outthe airport’s role in helping Panalpina to strengthen its leadingposition in intercontinental freight.

Panalpina CEO Bruno Sidler and Monique Gubler, Managing Director Panalpina Angola, Congo and Gabon.

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All in a day’s workBangladesh/Germany Panalpina Nuremberg and in-housecarrier ASB-Air have helped Panalpina agent Integrated Trans-portation Services Ltd. of Dhaka to handle a contract awarded by a German company to ship garments from Bangladesh to Germany.Given the large volume involved, an Antonov AN-124 operated by Volga-Dnepr Airlines was deployed. Owing to a delay in theproduction of the textiles and their delivery to Dhaka airport, thetight schedule could only be met by resorting to unconventionalmethods: the 10,000 cartons of shirts, blouses, jeans, etc. weighinga total of 108,000 kg had to be loaded without palettes. On landingin Nuremberg, the consignment had to be unloaded by hand,which took 14 hours in all. This gave trainee forwarding staff anidea of what logistics work can involve and how – given a measureof flexibility – unforeseen difficulties can be overcome. Once un-loaded, the garments were trucked to the final recipient, a chain ofdiscount stores.

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Worldwide

Combating poverty-related blindnessGhana Panalpina’s sponsorship program was unveiled in the lastissue of Connect. Since the start of 2003, the logistics provider hasbacked a program launched in Ghana by the Swiss Red Cross thatwill provide medical assistance for partially sighted people in WestAfrica.Eric Grand d’Hauteville, the officer at Panalpina entrusted withsupervising the humanitarian projects, pays regular visits to theAfrican clinics. “What struck me most during my last journeythrough West Africa was how little is actually needed to givesomeone a new lease of life. For instance, a 20-minute cataractoperation can utterly transform a patient’s life,” Grand d’Hautevilleexplains. “In many cases, sufferers of poverty-induced blindnessare unable to work and feed their families. A great deal can bedone in this area for a relatively small outlay.”Poverty-related blindness is widespread in West Africa. Yet,modest financial resources would suffice to prevent or cure some80% of cases and ease the immense social and economic burden.Considerable effort is therefore being expended in educationalcampaigns and eye check-ups in villages and schools. The SwissRed Cross has resolved to tackle the problem at its roots: apartfrom treating existing sufferers, the relief organization is seekingto publicize the causes of poverty-related blindness as a prelude tostamping it out.The program to combat poverty-related blindness has madeprogress on all three fronts – prevention, eye disease treatmentand the training of opticians and medical staff. Numerous RedCross volunteers have, for example, been trained to provideassistance, particularly in the areas of prevention and diseaserecognition. Also, with Panalpina’s backing, the refurbishment ofthe only ophthalmic college in Ghana has been completed andteaching is underway. Gratifyingly, the Ghanaian health authorityhas moved to integrate the campaign against poverty-relatedblindness in its own health schemes.

Spain/Portugal Panalpina Spain and Portugal have received the“Strategic Award” from Servicios Generales a la PublicidadSANCA for a marketing campaign run under the title “Do youdoubt our performance? Then why not travel 1st class along withyour freight!” The customers targeted were sent a box containing

advertising material detailing the services and network of logisticssupplier Panalpina together with a specimen First Class air ticket.The campaign wasn’t just a success in terms of its originality: it also enabled the two Panalpina companies to acquire many newcontacts.

A resounding success

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Publishing details: Editor, owner and publisher: Panalpina World Transport (Holding) Ltd, Viaduktstrasse 42, P.O.Box, CH-4002 Basel, Switzerland. Internet: www.panalpina.com. Tel. ++41 61 226 11 11.Responsible for contents: Martin Spohn, Corporate Communications. Editor: Martin Spohn, e-mail: martin.spohn@panalpina.com, büro:z GmbH, Bern. Distribution: Monika Dups, e-mail:monika.dups@panalpina.com. Publication intervals/languages: “connect” is published several times a year in German, English, French, Spanish and Chinese in over 100 countries. Total circulation:60 000 copies. Photos: Cover/p. 6/11: büro:z GmbH Bern/Basel; pp. 2/7: Joe Wilssens Photography Inc., New Baltimore/MI; pp. 3/4/22 (center, right), 25: Julian Salinas, Basel; pp. 8/9, 32 (bottom): Peter Maurer, Weisslingen; p. 10 (center/bottom): Masterfilms, Zurich; pp. 16/18/19: Cargolux; p. 17: Keystone/Paul Ames; pp. 20/23 (top): Novartis, (bottom): Envirotainer; p. 26 (top right): Digitalvi-sion; p. 27: P&O Nedlloyd; p. 30: SRC; p. 31: Toshiba; p. 32 (top): TCS touring. Design and production: büro:z GmbH, Bern/Basel. Printed by: bdv, Basel. Printed on 100% chlorine-free bleached paper.

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A win-win situationGermany Panalpina Welttransport (Deutschland) GmbH hasreceived the 2003 Import Award from the Storage Device Divisionof Toshiba Europe GmbH. It was the first time this prize has beenawarded. Panalpina has been handling airfreight and seafreight for the Japanese IT group’s German subsidiary, based at Neuss,since 1998. Under the operational supervision of its Frankfurtbranch, Panalpina not only ships imported goods from the Far Eastand the US to Germany but also handles consignments bound inthe reverse direction or shipped within Asia. Since August 2002,Panalpina has also been operating services on the ex-Hong Konglane.Toshiba Europe’s Storage Device Division is a market leader in thedevelopment, design and production of optical DVD-R/-RW, DVD-ROM and CD-RW/DVD-ROM (“combo”) drives for desktop andnotebook PCs as well as 1.8” and 2.5” hard drives. The Divisionsells top-quality peripherals to original equipment manufacturers

(OEMs), value-added resellers and dealers (VARs/VADs), systemintegrators and distributors in Europe. End-users, too, can buyToshiba’s innovative mobile storage devices directly. With therange of retail kits which it rolled out in 2001, the Toshiba StorageDevice Division now has a key competitive edge on the retailmarket. Top-notch technology and production processes havemade Toshiba a world-leading manufacturer.The 2003 Import Award was presented on September 2, 2003 byVolker Roloff, Manager European Operations Toshiba TEG, andAndreas Steiner, Import Export Coordinator Toshiba TEG, at aceremony held at Panalpina Germany’s new Frankfurt Airport(Cargo City South) base. It was given in recognition of Panalpina’sexcellent performance, its reliable and service-oriented approach,and its flexibility. The exclusive charters organized by Panalpinasubsidiary ASB-Air were singled out in particular, as was the factthat highly motivated, professional staff are assigned permanentlyto all interfaces. “Panalpina lives Toshiba’s business” is how thetwo Toshiba managers summed up the successful partnershipbetween Panalpina and Toshiba at the award ceremony. Bothpartners agree that a common understanding of the industry andthe markets (high-tech is a key focus for Panalpina’s business)provides a perfect basis for cooperation.

Volker Roloff, Manager European Operations Toshiba TEC and Andreas Steiner, ImportExport Coordinator Toshiba TEC, present the award in Frankfurt. From left to right: Walter Plumbohm, Andrea Sieber, Tina Gernandt, Robert Menzel, Volker Roloff, MarcBadenhausen, Wilfried Zay, Roland Gallandi, Andreas Steiner.

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Kaldip SinghProject Manager, IT Competence CentrePanalpina Regional Head Office Asia-PacificSingapore

“IT is people, not just machines”

“As Project Manager at the Asia-Pacific IT Competence Centre, my job is to makesure that the SAP system is working pro-perly in our region. It’s important to methat the software meets the users’ require-ments. Whenever a new SAP version isrolled out, I travel to the various countriesand instruct users about the new system. I enjoy this contact a lot, as it means I’mconstantly meeting new people and tack-ling new challenges. Panalpina is an idealemployer: the company is big enough tooffer its staff exciting assignments, but notso big that it makes you feel like a littlecog in a huge machine.”

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