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XPO Logistics has finalised a long-term agreement with leading global lifestyle brand Ted Baker to manage its new pan-European distribution centre. The agreement covers Ted Baker’s retail, wholesale and e-commerce operations across the Continent.

Ted Baker has expanded rapidly since its beginnings as a menswear brand in Glasgow, Scotland in 1988. Today, the Company offers a wide range of collections for men and women, and has a portfolio of over 400 stores and in-store concessions worldwide.

As Ted Baker embarks on the next stage of its global development, the Company is consolidating its existing distribution sites into a single ‘super distribution centre’ near Derby. The facility will operate 24/7 and will provide sufficient capacity to support Ted Baker’s growth initiatives, while creating approximately 250 new jobs in the region.

The contract for warehousing, order preparation and e-fulfilment was awarded to XPO Logistics following an intensive tendering process. XPO successfully demonstrated a flexible approach, relevant expertise in the fashion retail sector, competence in multi-channel solutions, and a willingness to engage in a collaborative relationship.

Chris Byrne, head of global logistics for Ted Baker, said: “We selected XPO Logistics because the Company has the capacity and expertise to provide a reliable, single-site solution from which to manage all of our sales channels. Our agreement with XPO will effectively support our long-term growth plans.”

Richard Cawston, managing director of supply chain – UK and Ireland, for XPO Logistics, commented: “We are delighted to provide the prestigious Ted Baker brand with comprehensive logistics solutions. Our two companies share the same focus – that is, to deliver a premier customer experience with every transaction.”

Under an exclusive agreement, XPO Logistics will continue to be responsible for the planning and execution of 100% of the transport requirements of SCC-Sociedade Central de Cervejas e Bebidas (HEINEKEN Group) until 2018. Sociedade Central de Cervejas e Bebidas produces and commercialises malt and beer products brewed and bottled at its Vialonga plant, including the line of SAGRES® alcoholic and non-alcoholic beers. The SCC portfolio includes some of the most prestigious international brands, such as the premium beer Heineken®. SCC owns an additional production facility in Vacariça where natural spring mineral waters are collected and bottled under the brands LUSO® and CRUZEIRO®, and also the distribution company NOVADIS. This is the second time that SCC has renewed its contract with XPO in Portugal since 2006.

Acting as a control tower, XPO Logistics teams are responsible for optimising SCC’s transport flows to guarantee 24-hour delivery to over 200 locations. The products move from SCC´s Portuguese production sites and logistics platforms to its retail customers and distributors, with additional direct deliveries to hypermarkets, cash-and-carry stores and other outlets. Transport reliability is critical, as volumes can exceed 28,000 loads annually (representing over 636,000 tons of products), with important seasonal peaks.

KeyPL is a pan-European collaborative transport solution exclusive to XPO Logistics that, the company says, “provides superior control and optimization of freight flows, with the goal of delivering added-value services to customers. KeyPL capabilities are fully integrated with the customer’s supply chain by skilled and dedicated teams acting as a control tower. The teams use proprietary technology to select, manage and monitor the best transport provider, mode and route for each shipment. Capabilities include the use of online real-time track and trace technology and POD management tools.”

According to XPO, KeyPL allows for better visibility and control of performance, as well as more effective planning, greater cost efficiencies in procurement and continuous improvement methodologies. Additionally, KeyPL delivers significant value through the enforcement of safety and environmental standards.

The analysis found that the value of completed M&A transactions in 2016 will pass the 2015 mark, which rose for the third consecutive year, to a total of £48 billion. Further transactions worth approximately £66 billion were announced, hitting a record level of M&A activity in the sector in 2015.

The upcoming year will remain active in terms of investments with three main trends identified as drivers, according to KPMG:
1) ASPAC will continue to attract investments as a source of new growth
ASPAC targeted acquisitions contributed to 55% of announced transaction values in 2015, and we expect this trend to continue reflecting underlying demographics, and the search for new markets. Landmark transactions announced in 2015 included: the operating concession for Kansai and Osaka Airports valued at £11.7bn; the acquisition of Australian rail and port operator Asciano for £4.3bn; and Singapore’s Neptune Orient Lines acquisition by CMA CGM for £1.4bn.

2) Asset-heavy and asset-light business model convergence in Freight & Logistics
The total value of completed Freight & Logistics M&A transactions have more than quadrupled from £7.2bn in 2013 to £31.4bn in 2015, and further transactions worth approximately £33.2n were announced during the year.

Asset-light logistics operators with advanced IT systems have, in recent years, been popular acquisition targets for large logistics providers and freight forwarders. However, we increasingly see that that “leaner” logisticians are looking for assets and (reliable) networks to supplement their services. Examples include the acquisition of US logistics company Coyote Logistics (high-tech / asset-light business model) by UPS worth £1.2bn, and the takeover of the French forwarder Norbert Dentressangle by XPO Logistics for £1.8bn.

Following the £3.3bn acquisition of TOLL Logistics by Japan Post in 2015 (which will transform the business model of the postal service operator towards a full-service logistics provider); the anticipated completion of the FedEx TNT deal (£3.1bn) will set the basis for another big year in M&A.

3) Alliancing and partnership models will continue to evolve where M&A can’t
M&A activity in the airline sector remained relatively low in 2015 (at £3.1 billion completed transactions) which is primarily because of restrictions imposed by foreign ownership restrictions and regulation. In the meantime, airlines will continue to evolve their business models and levels of co-operation towards alliancing and partnership to optimise their network, provide increase passenger choice, and pursue growth. Examples of new alliances in 2016 include the JV between Lufthansa and Singapore Airlines, and the alliance between IAG and LATAM.

James Stamp, UK head of transport at KPMG said: “We expect investment activities in the transport and logistics sector to remain high driven by the search for growth; changes in demographics and supply chain; evolution of business models; increased focus on customer proposition, and changes to the regulatory environment.

“With interest rates remaining low, returns on asset acquisitions remain attractive. We expect that further investments this year will see transactions to significantly exceed £52bn on the basis of announced transactions alone.”

Note: All figures quoted are translated from USD into GBP using an average exchange rate for 2015.

The GEFCO group, now a global player in industrial logistics and a European leader in automotive logistics, generated a turnover of € 4.2 billion in 2015, up 3% compared to 2014. Luc Nadal, Chairman of the Management Board of GEFCO Group, said: “GEFCO achieved good results in 2015 in an unsteady global economic context and succeeded in further enhancing its position of global logistics solutions provider. The Group expanded its international footprint by opening new countries and acquiring the Dutch company IJS Global, whilst broadening its offering in freight forwarding and customer portfolio. I see the Group’s performance as a tangible proof of our customers trust in GEFCO’s expertise: they know how much GEFCO’s teams are committed to adding value at every stage of their logistics chain.”

In 2015, the GEFCO group achieved a turnover of € 4.2 billion, up 3% compared to 2014. The Group produced a free cash flow of € 173 million over three years, with very little debt, which demonstrates its sound financial situation. The performance plan initiated mid-2014 to increase its cost flexibility, alongside with the Group’s “asset-light” business model, contributed to an efficient cost management by the company. In the meantime, the Group kept on expanding its customer portfolio and achieved an increase by 9.5% of its revenue with international industrial customers.

The EBITDA is lower than in the previous year (-18%). A decline in oil prices, the economic crisis hitting hard countries such as Russia and Brazil, and difficulties experienced by car makers in Latin America and Russia are the key reasons of this setback.

Finally, unrelenting efforts of GEFCO’s teams have laid solid foundation for the future and enabled the GEFCO group to maintain its position among the top ten European logistic integrators, and its number one status in Europe for Finished Vehicle Logistics.

The Group’s activity growth demonstrates the relevance of its diversification strategy and its successful implementation.

Created in 1949 to meet the logistical challenges of the automotive industry, GEFCO partners with main car makers and automotive suppliers in the world to manage and optimize their complex supply chains. The fruitful collaboration with DACIA – leading to 600,000 vehicles delivered in 10 years – and the 7-year contract signed with PSA Peugeot Citroën to manage their car compound in France – constitute as many prove, gained in 2015, of the quality and the recognition of such expertise.

In the meantime, GEFCO has been successfully rolling out a diversification strategy to enhance its future and profitable growth, supporting the development of its industrial customers worldwide with global logistics solutions. Among 2015 highlights we can mention successful multimodal transport plans designed and operated by GEFCO for Schneider Electric in Europe and the Balkans, for Alstom Transport between France and Kazakhstan, as well as for Eska Graphic Board, a Dutch manufacturer and exporter of high-end graphic cardboard, from the Netherlands to the rest of the world.

Militzer & Münch had inaugurated a new customs terminal in Tangier, Morocco. With the 10,000 square metre facility, Militzer & Münch is aiming to meet the rising demand for logistics services in the region. Tangier is regarded as a hub between Europe and Africa; the port city has turned into an investment location owing to growing trade between the continents.

According to the Bloomberg Innovation Index 2016, Morocco is one of the most innovative countries in North Africa and the Middle East. Last year, especially the export business in the automotive sector showed good development with an increase of 20 percent. The new Militzer & Münch terminal is situated at the border of Tanger Free Zone, about 60 kilometers from Tanger Med Port. 30 ports in 20 countries are at this time connected to Tanger Med.

“We chose Tangier, as the North of Morocco has great potential for economic development and there’s big demand among customers”, says Dr. Lothar Thoma, CEO M&M Militzer & Münch International Holding AG. “The region is booming. Many of our customers from the automotive and aircraft sector have their production plants there. The terminal in Tangier is an important step towards meeting the rising demand for logistics services.”

The new terminal offers a covered area of 5,000 square metres that can be used for storage. Customers profit from the increase in capacity and faster customs clearance. “We have at our disposal here our own bonded warehouse with a designated area for import and export customs clearance”, says Olivier Antoniotti, Managing Director M&M Militzer & Münch Maroc. “That Spedimex Tanger, an affiliate of M&M Maroc, settles at this new location is another advantage, as the Spedimex core competence is customs clearance.”

For 30 years, Militzer & Münch has been active in Morocco. In the past years, Militzer & Münch boosted the development of its Moroccan unit with strategic investments. Apart from the new terminal in Tangier, Militzer & Münch operates three branch offices in Morocco, two in the Casablanca region and a liaison office at Tanger Med Port.

In total, Militzer & Münch Maroc now has 42,000 square metres of space, a staff of 90 works for Militzer & Münch Maroc. “Our locations at the country’s busiest trade zones allow us to organize the goods flows in a perfect way and to offer fast logistic handling”, Antoniotti says. “Besides industrial freight and textile transport by road, air and sea, we believe there’s huge potential also in the automotive and aircraft industries as well as the plastics and electronics sectors.” At this time, M&M Maroc handles 20 groupage transports per week in import and export; with the trucks coming mainly from France, Italy, Spain, Germany, Portugal, Turkey, England, and Belgium.

ACE Exports Ltd, a UK company that has been supplying a range of personal care, grocery and household products to retailers throughout the Caribbean Islands for over 25 years, has outsourced its supply chain process to Midlands-based DK Fufilment Ltd (DKF).

Under the terms of the two year agreement, DKF will be responsible for receiving palletised loads of goods from ACE Exports’ global suppliers and storing the stock at its 165,000 sq ft shared user facility in Coventry.

Orders will be picked and assembled in to containers for onward delivery to the Caribbean on a weekly basis and, at peak times, five container loads a week will be dispatched.

Prior to outsourcing to DKF, ACE Exports had operated three warehouse units in the Black Country region but, by appointing DKF as its logistics partner, ACE has been able to remove this costly fixed overhead from its business model.

“One of the attractions of outsourcing to a third party supply chain solutions specialist like DKF is the flexibility it brings to our business,”
says ACE Export’s Consultant, Steve Tandy.

He adds: “Our Black Country warehouses had to be staffed to a level appropriate to cope with our busiest periods and this meant that when things were less hectic we were paying for personnel that were under utilised. It was a fixed cost that we wanted to lose and outsourcing has allowed us to do so.”

DKF opened its Coventry facility in December 2015.
The site offers three storage chambers and features a combination of wide and narrow aisle pallet racking as well as small parts storage bays and a dedicated pick, pack and re-work area as well as modern office accommodation.

The building is served by a new fleet of Toyota materials handling equipment, including counterbalanced and reach trucks, very narrow aisle trucks and man-aloft high level order pickers.

DKF Fulfilment Ltd’s managing director, Mark Elward, commented: “We are delighted ACE Exports chose to award this business to DKF. DKF will bring industry leading standards and operational excellence to the contract and we look forward to a successful partnership.”

Agility has expanded its Latin America network with the addition of company-owned operations in Bogota, Medellin and Cali in Colombia.

The logistics provider’s network now includes owned operations in Brazil, Mexico, Chile, Peru and Colombia, which together account for 75% of economic activity in Latin America and the Caribbean. In addition to its owned operations, Agility has strategic partnerships with agents throughout South and Central America and the Caribbean.

Agility Colombia offers export/import services, air freight, ocean freight, inland freight, warehousing, distribution and other services. Agility Colombia is a joint venture with Navemar Group, a logistics leader in Colombia, Costa Rica, Panama and Venezuela.

“Colombia is a vibrant retail and consumer market and a supplier of important agricultural, mineral and energy commodities. With political stabilization, it has a chance to be an important bridge between South and Central America as economies in the region deepen their integration,” said Margarita Sanmartin, Country Manager of Agility Colombia. “Customers want world-class logistics and supply chain services from providers that know the country and the region.”

Francesc Casamitjana, CEO Agility Americas, said “providing consistent levels of quality and service for customers across Latin America is a key requirement for Agility. Our newly established capabilities in Colombia will provide the level of excellence required.”

While economic growth slowed in Colombia in 2015 due to the fall in commodity prices, the near future looks brighter and investments have been forecast in the next few years with the recovery of non-oil exports. According to the 2016 Agility Logistics Emerging Market Index (AEMLI), U.S. shipments to Colombia showed the most growth among the top 10 lanes analyzed in the annual report, with an 11.7% increase in 2015. The main drivers for growth were an increase in export tonnage of fresh flowers and cereals and a higher needs for cold chain solutions.

April 2016 sees the introduction of a new vehicle toll for use of the road network in Belgium. Freight logistics solutions operator, Rhenus, has commented on the impact the charges will have on exporters and importers, to, from and through the country.

Gary Dodsworth (pictured), director at Rhenus Logistics, said: “While it is not uncommon to see governments introduce road or motorway tolls for HGV use, such decisions can have wide-reaching consequences when the country involved is a transit route for other destinations.”

As of today, the three regions of Belgium, namely Flanders, Vallonia and Brussels, will implement a kilometre tax for heavy goods vehicles weighing over 3.5 tonnes. This tax will apply to a significant number of the major roads through Belgium.

The road pricing will be calculated based on the maximum permissible weight of the trucks, their Euro emission class, and type of the road being used.

Dodsworth went on: “As a primary transit country for the majority of European destinations, the implementation of a new road toll scheme will have a follow-on effect on HGV routes to any country east of Belgium. Evidence of this was seen a few years ago when Germany introduced the Maut system.

“Unfortunately, the toll cost will have an impact not only on collections and deliveries to and from Belgium, but also on all freight or vehicles that travel within the country en route to other destinations. Rhenus Logistics is making every effort to explain and control these additional costs, aiming to minimise the impact on customers.”


Rhenus Logistics UK is based in Manchester, with an additional 12 facilities in the UK and Ireland. It has an annual turnover of approximately €80m and employs 250 people.