The 2012 World Economic Forum saw the launch of a new video explaining the humanitarian relief capability of the Logistics Emergency Teams, a joint initiative of Agility A.P. Moller-Maersk, TNT and UPS in partnership with the United Nations. 

                              Click here to view the video.

Grant Wattman has been appointed President & CEO of Agility’s Project Logistics business. He brings 40 years’ experience in leadership roles for government and commercial entities on innumerable large projects in infrastructure, logistics, power, energy, petrochemical, mining, oil and gas. He has previously worked at CH2M Hill, Panalpina, ABB Lummus Global, GeoLogistics and Fritz.

 
Grant is Chairman of the Exporters Competitive Maritime Council, serves on the board of The Logistics Institute and remains active in several other professional organizations, including the Railway Industrial Clearance Association and Specialized Carriers & Rigging Association.

“BRIC” countries and rising stars shine while confidence in Middle East remains high in wake of Arab Spring.

Global economic uncertainty and Middle East political turmoil are doing little to dim the attraction of emerging markets countries, which show signs of reducing their dependency on developed markets as they compete to be the trade hubs of the future. That is the conclusion of the 2012 Agility Emerging Markets Logistics Index. 

In spite of the 2011 economic slowdown and political upheaval in North Africa and Middle East, output in powerhouse economies such as Brazil, China and India remains high, and the so-called Arab Spring countries are now viewed as more attractive places to do business. 

The annual Index spotlights 41 emerging markets and ranks them by their investment potential and progress each year. Attractiveness is measured by: market size and growth; market compatibility (FDI, security, urbanization, wealth distribution); and market connectedness (international and domestic transport infrastructure). The report, sponsored by Agility, is compiled by Transport Intelligence, a leading provider of expert research and analysis to the global logistics industry. As part of the Index, 550 senior logistics executives were surveyed, making this the biggest survey to date in the emerging markets logistics sector. For the first time, the Index offers trade lane analysis from 2005 to 2011.

Dependence on Developed Economies Lessening 

While emerging markets cannot avoid the impact of economic downturns in the US and Europe, the Index points to developments that are providing a cushion. First, domestic demand in emerging markets such as China is growing. Second, trade volumes between key emerging markets countries are growing – and offsetting declines in trade with traditional developed markets. At the same time, worries of overheating in Asia have eased. 

The developing world will be the engine of global growth in 2012, offering business opportunities that few global companies can afford to ignore.

Top 10 Performers – Investment Attractiveness Powers Ahead 

The countries that dominate the rankings continue to be those that combine size and robust growth. China ranks first; India second; Brazil third. Saudi Arabia and United Arab Emirates (UAE) come in at Nos. 4 and 5; and Indonesia and Russia at 6 and 7, respectively. Malaysia moves up three places from last year’s rankings to land at No. 8. Chile was 9, and Mexico was No. 10, falling two places.

“Emerging markets countries are more resilient and independent than they’ve ever been,” says Essa Al-Saleh, Agility’s President and Chief Executive Officer, Global Integrated Logistics.“There’s growing evidence that their dependence on the established markets is diminishing as new trade lanes grow and consumer demand in huge markets like China and India gathers strength. In the Middle East, where we saw old regimes fall, the Index indicates that logistics professionals see the region as ‘open for business’ in a way that it wasn’t before.”

The Index top 10 – China Pulls Further Ahead, While Middle East Forges on 

China and India increased their Index scores, an indication that they took steps to enhance their attractiveness as markets. China distanced itself from other emerging markets, including India (2), which remains hampered by below-average scores in market compatibility and connectedness. Though Brazil’s infrastructure score remains weak, investment is set to grow in the run up to both the 2014 World Cup and 2016 Olympic Games. 

Underlining the resilience of the Middle East, Saudi Arabia saw a strong increase in its score and topped the compatibility index, meaning its market is easily accessible for foreign companies and poses few barriers to entry. Neighboring UAE moves up to fifth place, overtaking Indonesia. The UAE continues to top the connectedness table, the result of its massive investment in infrastructure in recent years, along with its strong shipping connections and liberal market access. 

In spite of having more raw materials than China, India and Brazil, Russia finished the lowest of the “BRIC” (Brazil, Russia, India, China) economies. Heavy reliance on energy exports makes Russia vulnerable to price fluctuation. At the same time, security threats, market barriers, corruption and political unrest continue to handicap Russia. In spite of its market size and growth prospects, Indonesia fell one place to No. 6 in the 2012 rankings, dragged down by poor compatibility and connectedness. In Mexico, crime, violence and drug trafficking lowered the country’s score for market compatibility and dropped it to No. 10 in the Index.

Overall 2012 Rankings (previous year) 1. China (1) 2. India (2) 3. Brazil (3) 4. Saudi Arabia (4) 5. UAE (6) 6. Indonesia (5) 7. Russia (7) 8. Malaysia (11) 9. Chile (9) 10. Mexico (8)

Ones to Watch – Africa Showing More Promise for Investors 

Africa continues to make steady progress thanks to performers such as South Africa, Morrocco and Ethiopia. Huge natural resources continue to benefit the region, and demand for these resources from Asia and the Middle East is growing. Despite a number of long-standing obstacles, African markets show increasing promise for investors. Africa’s exposure to fluctuations in commodity prices will be limited if global demand remains reasonably strong. 

“Emerging markets have never been so important to the global economy,” says John Manners-Bell, Chief Executive of Transport Intelligence. “However, operating in these markets requires a great deal of attention and preparation as the business environment is often highly challenging. The Agility Emerging Markets Logistics Index highlights many of these challenges and points towards the markets that will deliver the greatest opportunities.” 

TRADE LANES – THE FIGURES TELL THE STORY

With changes in world trade flows driving the emergence of new sea and air trade lanes, the Index has spotlighted the major shifts and trends in trade lanes between 2005 and 2011. 

Overall Ocean Freight volumes - Argentina and Turkey Stake Their Claims 

• Argentina’s ocean exports to Europe rank a surprising fourth among emerging markets trade lanes, outstripping those of Russia, Turkey, Ukraine, South Africa, India and Egypt. 

• Among emerging markets, China is the leading importer of goods from the US and EU, but Turkey comes in a close second. 

• Europe overtook the US as China’s top trading partner. China’s imports from the EU showed a huge increase (96% between 2005 and 2011) with domestic demand an increasingly significant driver. The biggest emerging market trade lane of all involved sea freight shipments from China to the EU, estimated at 50.48 million tons in 2011. 

Fastest-growing Ocean trade Lanes - Rising Stars Include Middle East, Africa and Americas 

• At the top of the table is Oman: non-oil trade from Oman to the EU increased almost tenfold between 2005 and 2011. Qatar, Saudi Arabia, UAE and Kuwait also feature, reflecting successful diversification outside the energy sector. 

• Rising export stars also include Morocco, Bolivia; Paraguay, Vietnam, Peru, Uruguay, South Africa, Tunisia, Argentina and Mexico. 

• Looking at trade moving into emerging markets countries, the fastest-growing sea freight trade lanes are those that carried goods from the US and EU to Paraguay, Vietnam, Morocco, Nigeria, Tunisia, Uruguay, Oman and India.

Overall Air Freight Volumes - Perishable Goods Place Kenya and Americas Up With The Leaders 

• Top 10 surprise rankings by volume to U.S./EU include Kenya, Columbia, Chile and Peru, driven by exports of perishable goods. Kenyan exports by air to the EU increased 134% between 2005 and 2011. 

• Largest air freight trade lane by volume is from China to EU 1.13 million tons in 2011. 

• Top 10 importers from US/EU include the BRIC countries, along with UAE. UAE ranks an impressive fourth; and with South Africa (8), Turkey (9) and Mexico (10).

Fastest-growing Air Freight Trade Lanes - Africa and Americas dominate  

• Ethiopia exports to EU and to US top the table, in part because of the coffee trade. 

• African countries Nigeria, Kenya, Morocco and Tunisia all feature in the top 10 fastest-growing exporters. 

• America’s countries in the top 10 include Chile, Ecuador, Peru and Mexico. 

• Looking at air shipments moving into emerging markets, Paraguay tops the table in percentage gains (from a very small base figure). Qatar and Oman also show strong gains in import volumes by air. 

HOW THE INDUSTRY SEES IT: CONFIDENCE IN MIDDLE EAST; AMERICAS, TURKEY, VIETNAM ON THE RISE 

As part of the 2012 Agility Emerging Markets Logistics Index, 550 senior logistics executives were polled, making this the biggest survey to date in the emerging markets logistics sector. 

N. Africa and Middle East – Open For Business in Spite of Arab Spring 

43% of respondents view the Arab Spring phenomenon as making the region either more attractive or much more attractive as an investment target. A further 24% see no impact from the tumult of the past year. 

Turkey, Vietnam and UAE Slated for a Big Future 

After the BRIC countries, professionals pointed to Turkey and Vietnam with massive near-sourcing potential as major markets of the future, and to the UAE for its massive port, airport, road and rail spending. South Africa, Mexico and Indonesia also make it into the top 10 “markets of the future.”

Barriers to Business: Corruption Takes Second Place Behind Transport 

Poor transport infrastructure is seen as the top barrier to business, while corruption and government policies have moved up the table as issues causing concern. Difficult customs procedures and hurdles to setting up and doing business also figure in the top five causes of concern. Security has dropped as an impediment in the 2012 Index. 

Asia Dominates Nominations For Trade Lanes of the Future 

Top nominee as having the greatest potential for future growth was the Intra-Asia trade lane, followed by Asia-Europe. Other big future routes highlighted by the survey were Asia-South America, Asia-Africa and Asia-Middle East, driven partly by the expansion of Chinese investment in these markets.

Future Investment Stars Include Americas; Confidence Strong in Middle East 

Professionals tapped Brazil as top destination for new investment over the coming five years, in part because of global demand for Brazil’s natural resources. Brazil’s selection was something of a shift away from China and India as top investment targets. Russia, the fourth BRIC market, makes up the last of the top four. Next come Vietnam, Mexico and Turkey, all high-profile emerging markets. South Africa and Argentina are both surprise markets to make the top 10. Morocco and Algeria shrugged off Arab Spring impact, and did well. Venezuela and Chile both fared well also.

AGILITY IN THE EMERGING MARKETS Agility has a significant presence in the emerging markets, in some cases offering market leading logistics services and infrastructure. Click the links below for details of Agility in each of the top 10 emerging markets. CHINA • INDIA • BRAZIL • SAUDI ARABIA • UAE • INDONESIA • RUSSIA • MALAYSIA • CHILE • MEXICO

To download a pdf of the full report please click here

The lift presented a significant challenge for Agility, which was asked to carry out a feasibility study for moving the drums – weighing a combined 112 tons – by sea and by air. As it turned out, the delivery deadline meant airfreight was the only option, so Agility chartered the AN-225, the only aircraft capable of transporting a load of this volumetric size. 

The road leg from the factory to Arlanda airport required detailed planning. Agility had to obtain special licenses to move the cargo on public highways and was restricted to certain roads at specified times. Anders Wiberg, Director, Agility Airfreight Nordics, says: “Our client challenged us to come up with a solution. I am proud of the resourcefulness, flexibility and responsiveness that Agility demonstrated in getting the job done for the customer.” 

From Space Program to Commercial Freight 

The Antonov 225, originally designed to carry rocket boosters and the Buran Orbiter (similar to the American space shuttle), first flew in 1988. Only one AN-225 was built before the collapse of the Soviet Union and cancellation of the Buran space program. A second aircraft was later partially assembled but remains incomplete. 

The AN-225 is the world’s largest aircraft, capable of carrying loads of up to 250 tons and with a load space of 1,100 cubic meters. It can also carry loads up to 70 meters on top of its fuselage, a capability originally intended for the Buran space shuttle. The sole AN-225 in the world is operated by Antonov Airlines, transporting objects once thought impossible to move by air. It has also become an asset to international relief organizations for its ability to quickly transport huge quantities of emergency supplies during disaster relief operations.

In Hong Kong, Agility received the Lloyd’s List Asia Logistics Award for the fourth consecutive year. The award judges noted Agility’s strong presence in the emerging markets of Southe East Asia and the company’s cross- border logistics solutions.

In Shanghai – and for the second year running - Agility received the award for Global 3PL of the Year at the Supply Chain Asia Logistics Awards. Agility also claimed a second honor, - the Green Supply Chain award. More than 300 leading logistics and supply chain professionals gathered for the region’s premier event. Agility rece4ived these awards following a ballot of Supply Chain Asia magazine readers and a final decision by a panel of distinguished judges comprised of Asia’s leading supply chain academics and industry leaders. 

In Pakistan, Agility received the Global HR Excellence Award for integrity and excellence in customer service. This is the second consecutive year that Agility has received this award. The Global HR Excellence Awards is an annual event that showcases the best HR talent in Pakistan. It honors human resource professionals for their contributions toward helping the development of a high-performing, and productive workforce within their respective companies. 

And at an awards ceremony in Dubai hosted by the Asian Confederation of Businesses, the Asian Leadership Operational Excellence Award went to Agility. This award is given annually to a company that demonstrates measurable achievements in enhancing the bottom-line, maximizing customer satisfaction, reducing cost, increasing market share and gaining leadership positions through strategic supply chain implementation. Agility also received an award for Best Corporate Social Responsibility Practice, for its its comprehensive global and comprehensive CSR strategy.

Industry groups continue to recognize Agility’s determination to go above and beyond for customers, employees and communities. These are just some of the awards during 2011 that recognize the expertise and dedication of Agility’s 22,000 people around the globe. Be it for customers, employees or community, Agility believes in going above and beyond and these awards is a clear demonstration of its outstanding efforts. 

Five-year contract for mega-hub project in China.

Henkel, the industrial and consumer products manufacturer with leading brands such as Persil, Schwarzkopf and Loctite, has awarded Agility a five-year contract as exclusive logistics partner for a mega-hub project in China.

The mega-hub, codenamed Project Dragon, is designed to streamline Henkel’s manufacturing in China to cover growth over the next 10 years. It will leverage significant economies of scale in manufacturing and supply chain processes. The contract starts in 2013. Agility will be providing services ranging from inbound logistics, warehousing of raw material and finished goods, production supply and clearance, and outbound logistics. Agility was selected on the basis of its proven capabilities and reach, as well as its strong understanding of the region’s logistics landscape. Agility was ideally positioned to serve Henkel because of its track record of chemicals logistics in China and Asia Pacific, which includes a major logistics and storage hub in Shanghai for polymer specialist Borouge.

“The early involvement of Agility is key to the success of Project Dragon, and will help ensure the best operational set-up,” says Patrick Westkamp, Asia Pacific leader for Purchasing Logistics at Henkel. “In Agility, we have found a partner who can support us across the entire logistics supply chain and in the design and planning phase of the new facility.” 

About Henkel

Ranked in the Fortune Global 500, Henkel holds market-leading positions in three business areas: Laundry & Home Care, Cosmetics & Toiletries, and Adhesive Technologies. The company employs around 48,000 people and generated sales of 15,092 million euros in 2010. 

Henkel was founded by Fritz Henkel, who in 1876 at the age of 28 launched his first product, a detergent based on silicate that paved the way for what is possibly the world’s best known detergent, Persil (a word formed from two of its original components, PERborate and SILicate). The creation of Persil was a significant chemical breakthrough. It is also marketed under other names in various parts of the world. 

Agility and Schmidt Heilbronn have launched a joint venture based out of Dubai to address the sharply increasing need for dry bulk solutions, particularly in the Middle East on the back of the region’s rapid growth in chemicals manufacturing. 

The joint venture, named SAMEL, combines Schmidt Heilbronn’s specialized expertise in bulk polymer logistics with Agility’s global logistics network and strength in emerging markets. Agility also has a long established in-house chemicals specialty. SAMEL’s focus will be on the Middle East and other major developing economies around the world.

The collaboration brings to the market a complete package from design and construction, to ongoing supply chain management, operations and dry bulk transport.

“Schmidt and Agility are delivering the right solution to the market at the right time,” says Andrew Jackson, President and CEO, Agility Chemicals. “We now have everything we need under one roof to meet customer needs across the Middle East and beyond – including tailored financing packages, turnkey construction and modern, reduced carbon footprint freight methods.”

Earlier in 2011 Agility and Schmidt Heilbronn announced the signing of a memorandum of understanding to pave the way for a long-term collaboration between the two companies, which have been co-operating since 2008 and worked closely on Agility’s Shanghai Logistics Hub project, created specifically for the distribution of polymers in china. With 66,000 sq. m. the hub is one of the largest facilities of its kind in China and capable of handling 600,000 tons of polyolefins annually.

“This venture brings together a unique blend of experience and technical knowledge,” says Wolfgang Hoppmann, CEO, SAMEL. “The degree of success with which our two companies have worked together is a tremendous platform for Schmidt and Agility as we look to the future and to the massive opportunity we see both in the Middle East and across emerging markets generally.”

The Brief: Transport 300 pallets of pharmaceuticals from the production site in Malta to 11 European countries, all to arrive on the same day for a synchronized Europe-wide product launch. 

This was typical of the time-sensitive deliveries Agility makes for Actavis, one of the world's leading players in the development, manufacture and sale of generic pharmaceuticals. 

Generic versions of branded drugs hit the market quickly once patents on the name-brand versions expire. For many generics, there is keen competition among manufacturers to be first to market. In some cases, that means arriving on shelves the day and hour that the patent on a name-brand drug expires.

As exclusive logistics partner to Actavis for generic product launches in Europe, Agility regularly handles these time-critical shipments, which are coordinated by its offices in Spain.

James Hare, Branch Manager - Valencia, Spain, Global Integrated Logistics, Europe says: “Agility offers in-depth pharmaceuticals expertise, and we were able to deliver a customized solution to Actavis. Our team members have Good Distribution Practice accreditation for the transport of pharmaceuticals, so we are accustomed to very challenging and strict time frames.”

Agility Switzerland has obtained Good Distribution Practice (GDP) certification for its Pharmaceutical Competence Center (PCC). The certification verifies that Agility’s processes and procedures adhere to best practices for handling pharmaceuticals and are in-line with World Health Organization (WHO) regulations. This certification complements Agility’s Swiss and French accreditation as a Qualified Envirotainer Provider (QEP), an essential part of providing the highest quality of service to the pharmaceuticals and biotech industries.