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Edition N° 13 / July, 2015SDVLIVE.com

CONTENTSSDV newS - P.3

SDV inSight - P.6trade between Asia-Pacific and Africaon the Rise

Dubai Seeks Logistics Leadership

Indian Aerospace Set for Take-Off

aiR & Sea tRenDS - P.8

MArkeT FOcuS - P.9Spain

EDITORIALInvesting in the Future

In six months the 21 conference of the Parties to the united Nations Framework convention on climate change, cOP21, will be held in Paris, France. Its objective is known to everyone: to boost the transition towards low-carbon societies and economies.

The international transport of goods, closely linked to the globalization of trade, obviously contributes to greenhouse gas emissions. Integrating the cO₂ variable in supply chain optimization therefore becomes a challenge for us all - clients and providers.

SDV already created the Save Program, an environmental solution dedicated to its clients, designed to make carbon reduction a new driver of logistics performance.

With Blue Solutions, our group (Bolloré) is developing alternative mobility solutions to combustion-powered vehicles, such as the electric vehicle and car-sharing solutions.

Anticipating the evolution of our businesses, being at the forefront of innovation, are the sources of value that we bring to our client solutions, and the keys to their performance.

Thierry EhrenbogenSDV ceO

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SDV NEWS

SDV WinS a Three-Year ConTraCT WiTh MarShallaeroSpaCe anD DefenCe Group

28.05.2015

Marshall Aerospace and Defence Group has selected SDV to provide domestic and international logistics in the united kingdom, based on a three-year contract, starting May 1, 2015.

Through this award, SDV will provide daily services to all of Marshall’s locations, including at the royal Air Force (rAF) in Brize Norton, Broughton, kirkbymoorside, and cambridge. SDV’s solution combines both domestic and international transportation with enhanced cost savings, efficiencies, full visibility of the supply chain via its LINk information systems and ongoing continuous improvement.

SDV Brunei and its staff holding the award given by Total E&P Borneo BV (TEPB) for their contribution to 15 Years of Zero LTI

STriDer CelebraTeS MillionTh bike SolD

22.04.2015

In February, Strider Sports Intl., the world’s premier manufacturer and marketer of children’s no-pedal balance bikes, announced the sale of its one millionth STrIDer Bike.

The business with Strider started in April 2012 with SDV Los Angeles for order management, pick & pack and distribution, from bikes to accessories.

Strider wanted to set up two distribution centers (Dc) but first wanted to establish the business in Los Angeles (LAX). Due to the growth of the business and the cost of cross country delivery from LAX, the Atlanta Dc was presented to Strider as a cost saving option. Thanks to the implementation success, SDV Atlanta became the Dc for the east coast in October 2013.

SDV Denver is also involved with Strider for ocean shipments and delivery of containers to Strider’s warehouse in rapid city, South Dakota.

SDV LAX is averaging 544 orders per month and SDV ATL 445 order per month. each bike’s serial number is scanned at time of picking to offer the customer traceability as to which serial number was shipped where, for their warranty purposes.

The Group’s companies, including SDV, actively celebrated the World Day for Safety and Health at Work the 28 of Aprilth

Laurent Bihry, Alstom - International Logistics Director, Elisabeth Nicolas, Sales - SDV, Jean-Philippe Brilland, SDV - Key Account Manager. On July 8, Alstom organized an internal communication event with 3 main logistics providers related to the issues of the supply chain performance

From March 1-3 of this year, SDV La Rochelle ensured the return of 41 sailboats from Marin, Martinique, to Lorient, France, at the end of Transquadra race

SDV To beCoMe The firST freiGhT forWarDer To iMpleMenT The iaTa CeiV pharMa CerTifiCaTion in 16 of iTS airporT hubS

17.06.2015

The center of excellence for Independent Validators (ceIV) Pharma certification program aims to become the globally recognized standard for the handling of pharmaceutical cargo across the following areas: infrastructure improvement, staff training levels and standards of control worldwide.

SDV provides end-to-end control of the pharmaceutical supply chain. With a high regard for rigorous cold chain management, it was no surprise that SDV was part of the initial wave of eleven companies participating in the 2014 Brucargo pharma certification program. Based on the good feedback and benefits observed from the community approach at Brussels airport, SDV then decided to certify 16 air stations in europe, Asia, North America and South Africa.

“The certification will help us demonstrate to clients and prospects SDV’s strong expertise in handling pharmaceutical products. It will increase security across major trade lanes from origin to destination and optimize the cold chain flow” says Brice Bellin, SDV europe Healthcare Director.

SDV supports the ceIV Pharma certification program and will continue to work closely with IATA and its industry working group, the Time and Temperature Task Force.

SDV korea exTenDS iTS loGiSTiCS operaTionS in buSan for a leaDinG eleCTriCal Supplier

30.06.2015

In March, SDV korea was awarded a two-year contract by a global leader in energy management in South korea for its logistics operations in Busan and by the same occasion opened its 3 logistics center located in Busan New Port (Free Trade Zone).

Thanks to SDV’s knowledge of the customer through many years of worldwide Freight Forwarding cooperation, along with SDV trademark of tailor-made solutions, SDV korea was able to offer a logistics solution with 30% less space and increase capacity by 60%.

Additionally, SDV’s solution offered the best Warehouse Management System capability among all participants of the tender: stock visibility, strict First-In First-Out (FIFO), end-to-end traceability, serial number (s/n) tracking, ageing reports, etc.

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anoTher SuCCeSSful Year for SDV aT The 2015 pariS air ShoW

06.07.2015

On June 16, Expliseat, Air Tahiti and SDV formalized a joint collaboration which will start on January 2016. For the first time ever, expliseat will provide regional ATr aircrafts with its ultra-lightweight seats. SDV has been selected by Air Tahiti to manage the shipments of these new-generation seats. SDV is also the logistics provider of expliseat.

The same day, AVIC International Logistics and SDV signed a Memorandum of understanding (MOu) to strengthen their cooperation. Its purpose is to define the general terms and conditions of their future commercial relationships such as common bonded warehouse implementation, support of AVIc in customs clearance in certain gateways in china, and the use of AVIc Logistics’ domestic trucking network to better serve SDV’s customers from the aeronautics sector. Subsequently AVIc considers SDV as its preferred logistics provider for international air/ocean freight between the North American Free Trade Agreement (NAFTA)/europe, the Middle east and Africa (eMeA) by using SDV’s global network coverage.

Alongside the Paris Air Show, on June 18, in Schwaebisch Hall (Germany), Recaro Aircraft Seating honored its major suppliers, including SDV, present at the award ceremony that took place as part of the 7 “recaro Aircraft Seating Global Supplier conference”. SDV Geis (Frankfurt, Germany), has been selected as a long-term partner for its on-going international transport services to the recaro sites around the globe.

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alSo in The neWS

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08.04.2015SDV Hong KongSuccessfully Passes the TAPA Class “A” Certification

13.03.2015SDV East TimorAppointed Ground Handling Provider for Garuda Indonesia

SDV WaS preSenT aT

11.03.2015 BioPharma Asia Convention

23.04.2015Africa-Belgium Business Week

13.05.2015Breakbulk EuropeConference & Exhibition

20.05.2015International Fair of Madagascar

Mr. Nannan SUN, International Director of AVIC International Logistics, and Mr. Cyril DUMON, Director of SDV Greater China, signing the MOU

01.07.20152015 Seafood Expo, in Belgium

24.03.20152015 Eurasia Boat Show, in Turkey

16.07.2015France China Business Forum

30.04.2015SDV positioned asa Leader in Gartner’s 2015 Magic Quadran for Third-Party Logistics, Europe

17.06.2015SDV Italy Celebrates the Expo Milano 2015

21.05.2015Airline Purchasing and Maintenance Expo (ap&m)

12.06.2015 Paris Air Show 2015

oTher arTiCleS

SDV INSIGHT

On SDVLIVE.com

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TraDe beTWeen aSia-paCifiC

anD afriCa on The riSe13.07.2015

Due to globalization, exporters encounter unexpected challenges when entering new markets. That dynamic between surging trade and required adaptation to local factors is perhaps most evident within booming business between Asia-Pacific and African nations.

“Booming Asian economies, especially china, need raw materials to fuel industrial expansion, while consumer goods going back to Africa answer growing demand from the rising middle class,” explains cyril Dumon, Director of SDV Greater china, based in Shanghai.

“A lot of exporters that used to ship goods to Africa via europe are now instead loading up entire cargo ships that sail directly to African destinations.”

But the real challenges - and choices - await Asia-Pacific exporters once their products arrive in African ports.

Africa’s internal transport network is still largely fragmented regarding national rail and road systems, and transporting goods from ports to land-locked countries remains notoriously laborious. Asia-Pacific companies that attempt to embrace trade opportunities with the entire

African continent discover their goods end up navigating patchwork of 47 different nations – each with its own transport and logistics, customs, duties and administrative differences and complexities.

“You can’t just put a container on a ship somewhere in Asia and say, ‘Part goes to kenya, part to Tanzania and part to uganda’ – it just won’t work,” says Dumon. “Africa isn’t integrated the way european union nations or uS states are. exporters need to have experienced partners on the ground in Africa who know how to deal with all facets and variations of transport, storage, handling and customs work that is involved.”

Adding to that complexity are the very different structures and states of evolution of distribution systems across Africa. Those can range from standard retail chain and logistics models to 100% Internet transactions that are delivered directly to final end-customers.

“Asian exporters really need to have partners in Africa who can cover all transport options, know the most efficient corridors, and have experience in the oldest and most recent distribution models alike,” Dumon highlights. “With the Bolloré group’s history and infrastructure in Africa, and its activity in Asia, we’re one of the few players who can offer that entire range of options based on clients’ needs.

The importance of having that kind of partner is expected to double in value. Indeed, the large volumes of consumer goods back to Asian markets will not only concern raw materials but also consumer goods based on the development of industrial capacities and local companies.

U.S. Companies Consolidate21.07.2014

Cambodia Challenges Made-in-China 06.10.2014

The Power of Tracking 07.11.2014

The Asian Beauty Business 01.12.2014

On the Ground in Timor-Leste 02.12.2014

Air Cargo Grows in Africa 09.02.2015

CleanerDeliveries18.03.2015

SDV pursues its commitments towards a more eco-friendly supply chain by announcing its very-first hybrid shuttle from its “Green Hub” in order to serve the fashion and luxury goods industry in Singapore downtown

The ASEAN Boosting Trade through Cooperation 08.06.2015

Raising the Bar on Pharma Handling 22.06.2015

Investing in Myanmar 24.06.2014

Meeting Africa’s Surge 23.04.2015

Dubai SeekS TranSporT anD loGiSTiCS leaDerShip

27.03.2015

The tiny emirate of Dubai is boldly moving to re-draw the transport and logistics map for a major part of the world. Its objective is to establish the small country as a giant hub of passenger and freight transport.

central to that effort is the Dubai World central (DWc) complex – a one-stop-shopping zone for companies transiting goods in and out of the Middle east, North Africa and South Asia (MeNASA) region, covering around 200 square kilometers.

The area makes up a single bonded customs zone designed to make transfers from one mode of freight transport to the other faster and cheaper.

“The idea is to make Dubai the hub all freight goes through to reach final destinations in South Asia, the Middle east and Africa,” says Philippe Lortal, ceO of SDV’s Dubai-based Middle east operation, which took up residence in the massive DWc in February.

The DWc is organized around the Al Maktoum airport, which at term will operate five runways, moving up to 12 million tons of cargo per year.

“Dubai is already the economic capital of the region with the largest container port.” “The DWc will secure its position as the principal air/sea transit portal. In doing so it will allow SDV to offer customers considerable savings in transportation cost and time.” The DWc has already attracted 6,400 companies from europe, the uS and elsewhere.

Lortal says Asian companies shipping to Africa via DWc will cut considerable time off the habitual ten days of transport when routing via europe, for example. “In becoming the primary pivot point for transport to Africa, the DWc became an inevitable decision for us.”

“The DWc also has room to expand as volume and activity grow which is not something Singapore or Hong kong can do,” Lortal adds.

All that means that as freight volume grows amid surging South Asia and African economic expansion, the DWc – and SDV’s activity in it – are set to attract similarly increasing interest of exporters.

Dubai - Launch in March of new infrastructures located in the free zone of the airport. Warehouse under controlled temperature and humidity environment specifically adapted to the requirements of the Aerospace industry

A New State-of-the-Art Building for SDV Nantes, France, certified HQE (exceptional) in its design as much as its realization and also received the BiodiverCity label

inDian aeroSpaCeSeT for Take-off

22.06.2015

Huge growth, regulatory harmonization and deeper experience leave India’s aerospace sector ready for big gains through 2020.

Like most of the country’s irrepressible economy, India’s aerospace activity has experienced rapid expansion that’s set to continue through the decade. Still, current practices and regulations have impeded the sector’s ability to fulfill its enormous growth potential.

Manish Batra, SDV’s South Asia regional Manager Aerospace & Defense, says Indian airlines are planning to double the nation’s current fleet by 2018. SDV already works with local giants in the civil sector, as well as Indian affiliates of foreign groups. Those two camps are expected to work increasingly together as they team up to meet rising opportunities.

For example, SDV has recently struck a strategic alliance with the Tata Sons-Singapore Airlines’ joint venture Vistara, serving as its official customs broker and international forwarder for all their commercial supplies and aircraft spare parts.

The legal revision on foreign capital is just one of several regulatory changes needed to remove barriers now hampering actors in India’s aerospace sector. Batra notes, for example, that operational rules differ between airports, cities and regions, and that even government-instituted regulations are not uniform across the country. complete electronic custom clearance eliminating manual checks can bring drastic change in clearance sector, which can further help to grow business at faster speed.

experience and savvy can reduce time and money lost to such administration delay in India, but avoiding them entirely is hardly possible.

“There are times when you must explain to big international importers why in some cases flying time is less than the clearance time,” Batra says. “Deep knowledge of administrative players and experience in getting around impediments are tools SDV uses to satisfy client requirements for speed and efficiency until remedial regulatory changes are made.

“Things are already improving as government officials realize restrictive rules and muddled regulations frustrate growth everyone wants,” Batra says.

SDV Hungary - Delicate shipment consisting of 24 racing canoes and kayaks for Hungary’s National Canoeing Team

The oVer-CapaCiTY ChallenGe

VoLumES RISE In boTH AIR And SEA FREIgHT In A ConTExT oF InCREASIng CApACITy ExCESS

10.07.2015

Activity in the air and sea freight markets continued to grow into the middle of 2015. However, over-capacity and timid macro-economic expansion has freight players scrambling to maintain price and profit levels.

“What we’ve seen is a classic imbalance of supply and demand, which is likely to remain challenging and continue forcing freight businesses to innovate through 2015,” says Anne-Sophie Fribourg, sea freight procurement manager for Bolloré Logistics in Paris.

She says that despite falling volumes in the early months of the year, global activity should advance by around 5% in 2015 – similar to 5.2% in 2014.

“Despite the fall in oil prices and lower euro, european economies continue struggling, and not exporting as much as they could,” Anne-Sophie Fribourg says. “china’s economy has also cooled, which is slowing its import rate. With the u.S. economy doing well, though, freight activity on the Transatlantic is somewhat stronger.”

Across the wider sector, however, shipping companies battling over-capacity won’t be getting a respite soon, as new 20,000 Teus ships are set to be delivered to freight companies this year. Around 1.14 million Teus of increased capacity has been added so far this year, with over 95% of that in ships over 10,000 Teus.

The arrival of huge ships on the leading trades of Asia europe and Transpacific creates a cascade of ships on medium size trades, and consequently overcapacity.

The main effort to face that surplus has come with companies reducing frequency and forming alliances – or both. Anne-Sophie Fribourg says the “Ocean 3” alliance between cMA cGM, cScL and uASc is considering reducing traffic on Asia europe routes by around 12% during 20 weeks of the year in an effort to lift prices – and per-ship profitability. But she thinks such move may have limited impact.

AIR & SEA TRENDS7

“even a 4% decrease in total capacity on Asia europe routes won’t be enough to considerably increase prices,” she says.

“Such massive arrival of capacity has consequently brought more volatility on the spot market, reaching historical low levels in June.”

Activity has also remained positive in the airfreight sector.

After flattened activity in the first quarter, air cargo volumes have increased to 2014 growth levels of 4.5%, with sharply contrasting increases per region – european airlines seeing a mere 1% rise, for example.

claude Picciotto, airfreight procurement manager for Bolloré Logistics in Paris, France, says forecasts for the entire year call for air cargo activity to grow by 4.5% to 4.7%, a bit higher than in 2014. But the air shippers have to respond quickly to both rising capacity and innovation by surging Gulf airlines that other players must adapt to.

“Virtually every Gulf airline except etihad uses all-in pricing, and everyone else is under pressure to follow that lead to prevent the market from being fractured by contrasting practices,” claude Picciotto says. “The result is that while even if most other airlines and cargo companies say they won’t offer all-in, they all now provide discounts and concessions that, in the end, amount to all-in arrangements.”

Though he says he expects increased activity in the second half of 2015, rising capacity will limit per-flight pricing and profits. Many companies have matched deliveries of wide body capacity by retiring aging planes; however, total wide body capacity in service in Q2 of 2015 was the highest in nearly a decade.

Freight load factors are slipping as a result, which may continue into the year as greater onboard capacity is compounded by increased flight frequency.

“emirates airline has two cargo pure freight flights and five passenger flights a day to French destinations each week alone,” claude Picciotto says of the growing competition and capacity level. “russian AirBridge-cargo Airlines will be operating five flights per week, and chinese carriers are also looking to increase cargo hauls to five per week. And that’s just traffic into France. Think about that over the entire globe.”

The good news for both sea and air transporters, however, is macro- economic forecasts are looking brighter in most regions, and should bring increased trade.

KEY CONTACTS

Stéphane Armand Director PacificTel: +61 (2) 8336 3906 s.armand@sdvasia.com

Cédric ChupinSales Director Australia & New ZealandTel: +61 (2) 8336 3992 c.chupin@sdv.com

21.02.12

Australia has transformed itself into an internationally competitive, advanced market economy thanks to abundant and diverse natural resources which attract high levels of foreign investment and include extensive reserves of coal, iron ore, copper, gold, natural gas, ura-nium, and renewable energy sources.

Besides being the world’s largest net exporter of coal accounting for 29% of global coal exports, the country is also a significant exporter of food and has a large services sector. The Australian economy grew by 1.8% during 2011.

Originally created in 1975 as a representative office, SDV (Australia) PTY LTD was established as a full ope-rating Australian company in 1992. In 2009, SDV is affir-ming its ambitions on the continent with the acquisition of euro-pacific Forwarding Pty Ltd. 215 employees are located in 5 offices and 7 logistics centers and develop end-toend solutions in activity sectors such as Aeros-pace, Industrial Projects, Oil & Gas, Healthcare, Fra-grances & Flavors and Perfumes & cosmetics.

SDV in Australia has recently opened an office in Darwin with a 2,000 sqm warehouse and 10,500 sqm of yard, to support Jkc JV with the “IcHTHYS LNG project” but also all its customers in the Oil & Gas and Industrial Project industries. It caters to the needs of operations and projects on-shore and off-shore in the “North-West shelf” as well as being an advanced supply base for east timor.

SDV in Australia has developed a first class 24/7 cus-toms service enabling pre-clearance of all import ship-ments as well as a consulting audit approach to explore duty concessions, special regimes, ePBS… for its cus-tomers.

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MARKET FOCUS

Spain is a key country of Southern europe: fifth economy of the european union (eu), and an important gateway to Latin America and Africa. It is the twelfth-largest exporter in the world and the sixteenth-largest importer. The port of Valencia in Spain is the busiest seaport in the Mediterranean basin, fifth busiest in europe and 30th busiest in the world.

SDV created its own subsidiary in Spain on December 2014 and Antonio Prat is the Managing Director. With this new subsidiary, and reinforced ambitions, SDV pursues its own strategy for development in europe to accompany its customers in Spain. This structure of 150 people, headquartered in Valencia, incorporated the Bolloré Group teams already present in Spain, including ISAMAr, specialized in shipping. Besides, the forwarder company GeTFOrWArD, dedicated to the French Overseas Departments and Territories traffics, has also been incorporated to Bolloré Transport Logistics (BTL) Spain under the SDV brand.

SDV has four offices in Spain: Madrid, Valencia (HQ), Barcelona and Bilbao. Activities include sea and air freight operations, inland transportation and project logistics. An entity of 18 people dedicated to industrial projects guarantees a professional approach to different sectors such as construction and equipment, oil & gas, energy and mining.

SDV also provides warehousing facilities across the country (25,000 sqm) and its own in-house customs brokerage services which ensure a solid knowledge of carriers and market rate fluctuations.

SDV Spain is also certified ISO 9001-2008, AeO, and holds the International Air Transport Association (IATA) certification for the airfreight operations.

keY ConTaCTS

1 - SDV Spain’s Headquarters in Valencia2 - SDV Valencia team at Headquarters3 - Top: SDV Madrid Project team / Bottom: SDV Madrid Forwarding team4 - Port of Valencia: cargo operations of 25 industrial units 5 - Export of 95 rolling cargo units from Vigo (Spain) to West Africa6 - Top: SDV Barcelona team / Bottom: SDV Bilbao team

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bY SDV Spain

Juan Miguel Queralt Projects Director SDV SpainTel: +34 963 939 706 j.queralt@sdv.com

Vincent CariouFreight Forwarding DirectorSDV SpainTel: +34 963 939 702v.cariou@sdv.com