Strong in Sea Freight

Just over a year ago, the Sri Lankan organization of Militzer & Münch took up operations at the port of Colombo. Despite the country’s difficult internal situation, the company keeps growing, with especially sea freight developing very well. In order to offer even better service to their customers, the team optimized the company’s IT. What’s more, Militzer & Münch Sri Lanka is now a member of FFSI, the global transportation network.

Militzer & Münch has been operating in the island nation in the Indian Ocean since 2015 – initially via a delegation office. The growing importance of Sri Lanka as a logistics hub on the Maritime Silk Road in South Asia and the expansion of the port of Colombo led to Militzer & Münch founding its own logistics company there in June 2018.

Successful in The Sea Freight Segment

Operating from the office at the port of Colombo, the capital of Sri Lanka, the team works for a wide range of industry sectors. “Beside tea and coconut fibers, also air plane tires, raw material for textiles, electronic devices and laboratory equipment are among the goods we mainly transport”, says Dilum Stembo, Managing Director M&M Militzer & Münch (Pvt) Ltd. “In 2018, sea freight accounted for far more than half our transports.”

First Multimodal Transport

Most shipments are sent to Europe or the CIS countries. A CIS country was also the destination of Militzer & Münch Sri Lanka’s first multimodal transport. In July the team in Colombo handled a shipment from Thailand via the Russian port of Vostochny to Uzbekistan, in cooperation with sister company InterRail. The freight: about 23 tons of steam activated carbon, which Militzer & Münch transported in a 40’ high cube container. The transit time was 55 days. Additionally the team handled the transport of another two 40’ high cube containers with about 56 tons of coco fiber from Colombo to Tashkent – this could turn into a regular order for the Militzer & Münch team.

Part of The Network

In May 2019, Militzer & Münch Sri Lanka joined FFSI (Feta Freight Systems International), a transportation network within the Far East Transportation Association (FETA). “The FFSI membership offers us vast opportunities to cooperate with qualified transport companies”, says Dilum Stembo. “As part of the network, we hope to be able to further develop our business. Moreover, we and also our customers profit from a wider geographic coverage. Apart from the advantages that come with the membership, being part of FFSI also constitutes a high distinction for us, as the network only accepts the best transport companies as members.”

Customers Benefit From New IT

Continuous improvement of processes is part of the growth strategy of Militzer & Münch Sri Lanka. “It motivates us to always define new potential for optimization”, Dilum Stembo says. Recently, the team replaced the TA (transport administration) system. “The new system is much better adapted to Sri Lankan standards – it allows us to work in a more efficient way, to offer our customers even better service, and to continue growing in the market”, Dilum Stembo explains.

 

M&M Poland Now Regulated Agent

With the new status as Regulated Agent, Militzer & Münch Poland can offer its customers faster, cheaper and more secure transport of cargo by air.

Airfreight is subject to comprehensive and complex security regulations, from which shipments forwarded by a Regulated Agent are exempt. To acquire this status, companies need to undergo an accreditation audit with the responsible aviation authority and to train their staff accordingly.

The Regulated Agent status comes with advantages for logistics companies and their customers:

• Exemption from cargo security control;

• Reduction of operating costs
(no additional cargo security control at the airport needed);

• Acceleration of the cargo handling process;

• Increased credibility on the air freight market.


The New Status Motivates The Team

In late February 2019, M&M air sea cargo S.A., the air and sea freight segment of Militzer & Münch in Poland, was accorded Regulated Agent status. This is another step forward on the company’s path to further optimize and expand its customer service.

“We are happy to be able to act as Regulated Agent in line with the EU regulation for our customers”, says Artur Wojtczak, Director Sales M&M air sea cargo S.A. “This holds a big advantage for our customers, yet at the same time for us as a company it means big responsibility.” Thus, the Regulated Agent has to declare shipments as secure or not secure, among others; he has to guarantee that no prohibited items get on board with airfreight shipments, and issue the necessary accompanying documents.

Paweł Iwaniuk, Manager of the Export Department at Militzer & Münch Poland: “In view of the good development of airfreight exports – especially in the foodstuff and cosmetics sector – the Regulated Agent status is of great support to us in our everyday jobs. We can now handle export orders smoothly and much faster than before. Working within a secure supply chain will also help us win as new customers such companies that want to grow with us.”

Faster Processes and Greater Security

Smooth processes and wide geographic coverage are decisive factors for the success of an international logistics services provider. Militzer & Münch Morocco’s AEO certification helps the company to further strengthen its market position – also to the benefit of the customers.

Continuous development is part of everyday business for the Moroccan organization of Militzer & Münch; the logistics company under Managing Director Olivier Antoniotti keeps expanding at regular intervals. Among the expansions are the opening of the country’s first bonded customs warehouse in 2000, the founding of subsidiary Spedimex in 2001, and the construction of new locations in Casablanca (2003), Tangiers (2008 and 2016) and Sapino Nouaceur (2012).

Improving The Supply Chain

The foundation of this growth is the smooth supply chain, which is continuously optimized by Militzer & Münch Morocco. Since May for instance, the company has been acting as an Authorized Economic Operator (AEO, Full certificate) – which means the company was granted AEO status in Morocco. ‘Authorized Economic Operator’ is an internationally recognized certificate that simplifies customs processes and guarantees appropriate safety and security standards along the supply chain.

Headed by Olivier Antoniotti and his deputy Ahmed Zouhair, the Militzer & Münch Morocco team worked for two years to upgrade the organization to the requirements of AEO Full certificate standards. In order to receive the full certificate of Security and Safety (AEO S), the company had to meet all applicable customs and tax regulations and provide appropriate security measures and proper accounting. It was well worth the effort, and in May, Olivier Antoniotti signed the contract.

“The AEO status allows us to speed up international goods transports”, says Olivier Antoniotti. “That way, we can offer our customers simplified and more efficient transport services. We are especially proud to be the first company to have been granted AEO Full certificate status in Morocco.”

As a next step, the company is working on a full EDI connection (Electronic Data Interchange) with the Moroccan customs. This data interchange allows paperless transfer of customs declaration delivery notes and other business documents from system to system without manual intervention. As a result, processes run even faster and more effectively.

 

Everything under one roof

In late 2018, Militzer & Münch moved to a new distribution center in Greece. At the new, spacious location in Aspropyrgos near Athens, Militzer & Münch combines different warehouses. The modern technologies and efficient usability of the new premises optimally support logistics activities and contribute to the growth of the company.

Militzer & Münch Greece has moved to a new location. The new construction at Aspropyrgos, an Athens suburb, is situated close the old warehouse near the Athens-Patras Motorway. In addition to Aspropyrgos, Militzer & Münch Greece continues operating at the second location, in Thessaloniki, the western port city.

As private consumption, the main indicator of Greek economy, remains at a low level, and the manufacturing industry is all but non-existent, Militzer & Münch has shifted its focus to value added services. Being the leading provider of these services in Greece, Militzer & Münch early on recognized the opportunity. “The move to the new logistics facility allows offering such services as labeling, picking and packing, warehousing and customs management at a very high level”, says Panagiotis Manolopoulos, Managing Director M&M Militzer & Münch S.A.

Bundling activities at one location 

With a storage area of 13,605 square meters and a 500 square meter zone for offices and staff rooms, the new complex lets the Militzer & Münch Greece team combine all the activities handled at Aspropyrgos under one roof. Until autumn 2018, warehousing and office areas were spread over four buildings at different addresses.

Not only does the building offer lots of space, it also comes with optimal ceiling height. Thanks to the space-saving sprinkler system under the roof, the employees can make efficient use of the space available: the shelves go up to almost ten meters in height.

In terms of technological and ecological aspects, the warehouse offers enormous added value, too. “We have here a very modern, energy-efficient new building equipped with state-of-the-art technology”, Panagiotis Manolopoulos says. “The warehouse features 14 electronically controlled ramps. Transparent overhead light strips allow working by daylight almost full-time and reduce energy consumption.” With high speed Internet and innovative warehouse management software laying the technological base, the company can now offer the entire service spectrum of a 3PL and 4PL provider.

The move, and the growth it enables, were duly celebrated. “On January 21, we festively inaugurated the new building”, says Panagiotis Manolopoulos. “Apart from our main customers, the directors of the German-Greek Chamber of Commerce and the Greek Forwarders’ Association attended.”

In Istanbul: a 6,000 square meter logistics area

On 1st October, the Militzer & Münch Turkey team moved to a new office and a new warehouse in Istanbul. The location, optimally situated in vicinity of Istanbul’s Muratbey customs office, lends itself for cross docking and also allows a wide range of logistics services; it also simplifies overland transports between Europe and Turkey.

Militzer & Münch Turkey has been operating the new warehouse and office at Hadımköy, Istanbul, since October 1st, 2018. From this location, the team offers mainly road transports going to Europe, but also to other destinations such as the Balkans and CIS countries.

Despite the economic situation of the country, Militzer & Münch Turkey managed to develop successfully. “We succeeded in winning new customers and increasing our turnover; and in the past months, we were able to dedicate more time to such services as intermodal solutions”, says Cem Ulusoy, Managing Director of Militzer & Münch Turkey. The future looks very bright to the Turkish M&M organization. “Increasing our market share, developing our transports volumes, and also concentrating on combined traffics and the project business still are and remain our targets.”

At a total area of 5,700 square meters, of which 350 square meters office space, the facility has more capacity than the former warehouse and also provides the possibility to offer additional logistic services. “3,000 square meters of the facility alone are dedicated for bonded storage”, says Cem Ulusoy. “Other sectors we use for cross docking for export shipments and as storage and distribution center for domestic goods.”

The sales team at Militzer & Münch Turkey profits from the facility’s optimal situation in Istanbul. “The new location is near the Muratbey customs office, which seals all export trucks. Moreover, many big corporations with import and export business are domiciled around us within a 20-kilometer radius”, Cem Ulusoy says. “The close proximity lets us reach existing customers and potential new ones much better.”

The Lapis Lazuli Route reopened

In earlier times on camelback, today via truck: since the end of 2018, the famous trade corridor between Afghanistan and Europe has been reopened. The transport route, named for the blue semi-precious stone, dates back more than 5,000 years and comprises the shortest overland and sea routes between Central Asia and Europe.

At the Afghanistan Regional Economic Cooperation Conference in November 2017, the foreign ministers of the countries involved – Afghanistan, Turkmenistan, Azerbaijan, Georgia and Turkey – signed the transport and transit agreement concerning the Lapis Lazuli Route. The roads, railway tracks and waterways connect Europe and Turkey, via the shortest routes, with Afghanistan and Central Asia, and via the New Silk Road also with China.

The reopening of the Lapis Lazuli Route is meant to promote regional cooperation and to strengthen the economic and cultural relations between Asia and Europe. In the long term, the initiative will also boost Afghanistan’s infrastructure and economy.

3,000 years before Christ 

The Lapis Lazuli Route is part of the old Silk Road. The name is inspired by the history of the trade routes used to export lapis lazuli (Latin for: blue stone) more than 2,000 years ago from Afghanistan to the Caucasus, to Russia, the Balkans, to Europe and North Africa.

More than 6,000 years ago, man began mining the valuable lapis lazuli deposits for export to far-away regions. Parts of the trade lanes that make today’s Lapis Lazuli Route between Afghanistan and countries to the west were established already in the third millennium before Christ. Using different routes, caravans of up to 4,000 animals covered distances of 3,000 and more kilometers to take lapis lazuli and other rocks mined in Afghanistan to Mesopotamia and Egypt.

The only suitable means of transport were donkeys and camels. While donkeys carried the goods safely across the eastern mountain ranges, the camels were able to cover the rest of the distance across the sandy desert, owing to the fat storage in their humps. On arrival in Mesopotamia, the traders exchanged the blue stone, among others, against wool and grains.

The Lapis Lazuli corridor in the 21st century

For a long time, owing to insufficient infrastructure along sections of the route and the economic and political instability of the countries involved, the route was impassable. Massive investments in connection with the BRI (Belt and Road Initiative), China’s program to push the development of the New Silk Road, contributed to the revival of the old trade routes. This also benefitted the projects of the Militzer & Münch group in Turkmenistan, Azerbaijan, Georgia and Turkey.

Today, the Lapis Lazuli Route is of interest for the transport of cotton, dried fruit and sesame products, which can now be delivered to Europe within the shortest time via the reopened sea and overland routes.

 

New service to Algeria

One year after an affiliate company was opened in Algeria, Militzer & Münch France launches regular groupage transports to Oran. The new product meets the rising demand for connections to the country’s second biggest city. Over the past four years, Militzer & Münch France’s transports to Algeria have increased by 300 percent.

Oran is the commercial capital of western Algeria, a region where numerous renowned automobile manufactures have settled, among others. To further develop its activities in this highly promising market, Militzer & Münch started offering regular groupage shipments in mid-September. The new service provides two departures per month – with a direct connection from Marseilles to Oran. The transit time is only five days.

The service is also available for dangerous goods transports. Moreover, via the Marseilles branch, Militzer & Münch offers value-added services such as labeling, quality control, order picking and packaging for all Algeria transports.

Polish food exported worldwide

Polish foodstuff is popular worldwide, as export figures prove. Beside Europe, new markets such as Asia and America are important destinations for Poland’s exporters. Artur Wojtczak, Sales Director at Militzer & Münch Poland, comments on the chances offered by this trend in the foodstuff industry.

Food products are among Poland’s top exports. In 2017, the value of food exported amounted to 23.6 billion euros – an increase by 9.4 percent in the year-on-year comparison.

Early on, Militzer & Münch Poland recognized the rising demand and offers comprehensive services in national and international food transportation including the storage of food products as well as transport via road, rail, air and sea. “Poland’s food exports will continue to grow”, says Artur Wojtczak. “We benefit from this development to further strengthen our market position and to offer our customers additional services.”

Artur Wojtczak, Sales Director at Militzer & Münch Poland


Export partner number one: Germany

Militzer & Münch recently handled big project transports. The team shipped dairy products to Africa and eggs to the Arabian world. The transports also included various plant fibers that are used for diverse products. Although African and Asian markets are gaining more and more relevance, EU countries remain the top export destinations for Polish food products – with Germany at the top of the list, followed by Great Britain, the Czech Republic and France.

“Our reefer containers are perfectly suited for temperature-sensitive cargo – a must for many foodstuffs transports”, says Artur Wojtczak. Another challenge: transporting goods with a short shelf life. Here, choosing the right mode of transport is decisive. By vessel, the transit time from Poland to China is circa 35 days. Rail freight travels faster: within 14 days, the products arrive in China – a significant difference for time-sensitive food transports.

“Owing to our know-how, Militzer & Münch is a valued partner to the Polish foodstuff industry”, says Artur Wojtczak. “We are confident that in the future we will also use the air freight segment more intensively for food transports.”

What goes where?

Among the food exports from Poland, dairy products, fruits, vegetables, honey, eggs, juices, sweets and organic products are in especially high demand.

  • The export of dairy products such as milk powder and UHT milk is growing mainly with transports to Algeria, the United Arab Emirates, India, Ethiopia, and Australia.
  • Polish sweets are popular in Cameroon, Nigeria, Taiwan or Maldives.
  • Hen’s eggs and blueberries are popular in Arabian countries.

Award-winning airfreight services

Top performance is rewarded: the team M&M Air Cargo Service (ACS) Bulgaria Ltd. was able to win five prizes in 2017.

Militzer & Münch’s Bulgarian airfreight services team has received the “Best Agent in Bulgaria 2017” award three times: by two airlines, Lufthansa and Fly Dubai, and the logistics services provider time:matters.

A further highlight was the festive award ceremony of Turkish Airlines. The airline honored M&M ACS Bulgaria Ltd. with two awards – as “Best Cargo Partner of the Year 2017” and as “Best Partner for Turkish Airlines & Premium Products”.

These awards again emphasize the continued appreciation of Militzer & Münch Bulgaria. Already in 2016, Turkish Airlines and Fly Dubai honored M&M ASC Bulgaria Ltd. as their best cargo partner.

Daniela Toneva (Sales) and Plamen Stoyanov (Export) of M&M Air Cargo Service (ACS) Bulgaria Ltd. at the award ceremony of Turkish Airlines.

Record results in North-East Europe

At the base of the good business development of Militzer & Münch in the Baltics is, among others, the close cooperation with affiliate Cargomax in Latvia. The concept works – transports are reaching record figures. Last year, Cargomax was able to increase its turnover by 16 percent.

A new high: Cargomax transported more than 13,000 shipments by truck in 2017 between Western Europe and the Baltics, among others in cooperation with Militzer & Münch. The record result is mostly based on the growth in road transports. The sales team was also able to increase the number of customers – by seven percent.

“The new figures even top the previous record figure from 2016”, says Dmitrijs Vorniku, Managing Director of Cargomax. “With 6,800 shipments, groupage road cargo traffics (CargoLine) improved the result of the previous year by 13 percent and has the biggest share in increase of gross profit.” The traffic planning team handled almost 5,000 FTL and LTL shipments and achieved an increase of 11 percent, having the biggest share in 16 percent turnover growth. In addition, Cargomax handled 1.500 jobs from and to Great Britain.

Half of the deliveries come from or go to Germany. “We can get goods from Germany to the Baltic states within no more than 72 hours”, says Dmitrijs Vorniku. “In cooperation with our colleagues from Militzer & Münch in Germany for instance, we handle regular transports to deliver parts for a car manufacturer.”

Cargomax, an affiliate of Militzer & Münch, achieved a new record turnover with its truck transports between Western Europe and the Baltic States in 2017.

Conquering the steppe

On some roads in Kazakhstan, you have camels crossing, and  some routes are sand tracks only. Difficult circumstances for the transport of parts for a compressor station to Bozoi in Kazakhstan – the perfect task for Militzer & Münch.

The gas pipeline will cover a distance of almost 1,500 kilometers, from the west of Kazakhstan to Shymkent in the south. For the gas to be able to travel long distances unhindered, compressor stations regulate the pressure. Like in Bozoi, a region in the middle of the Kazakh steppe.

It’s the place where one of several state-of-the-art compressor units is being built for the new pipeline. The components come from all over the world. For instance from Shanghai, more than 6,000 kilometers away. Or, almost as far off, from Europe: Great Britain, Germany or the Netherlands.

“This order was quite a challenge.”

Nikolaus Kohler
Regional Managing Director Middle East / Central Asia

These enormous distances are business as usual for Natalie Andriyevskaya, Managing Director Militzer & Münch Kazakhstan. In the world of logistics assignments, she is up to the task. What she needs are partners who support her in meeting the challenges. Across all borders, across all cultural, linguistic and national differences. And also across rough terrain.

Multimodal transport concept

“This order was quite a challenge”, says Nikolaus Kohler, Regional Managing Director Middle East / Central Asia. “We had to transport five complete compressor units from Europe via Russia to Kazakhstan. We were glad to be able to rely on our strong teams in Germany, Russia, and Kazakhstan.”

From the beginning it was important to proceed strategically, to leave nothing to chance. A multimodal transport concept set the course.

Militzer & Münch first of all gathered the parts from England, the Netherlands and Germany at the port of Rotterdam, from where they were shipped to the port of St. Petersburg. The cargo was stored here, and was then loaded onto 36 trucks and transported to the Bozoi construction site. The components from China were stored in Shanghai before they were loaded into 35 containers and sent to Aktobe, Kazakhstan, via rail. From there, they reached Bozoi by truck.

Road survey reveals challenges

Months before the transport, an M&M Kazakhstan employee traveled to the construction site to draw up a detailed route plan. The report brought some weak points to light. For one: from Saksauls to Bozoi, there is only one unpaved road, which is used exclusively for gas pipeline service purposes. Any other general traffic is completely prohibited. And second, in the Chromtau region in northwestern Kazakhstan, a pipeline crosses the road. The pipeline is too low for the uncustomed goods – which have been loaded onto special Kazakh trucks and trailers in the customs warehouse – to be transported under it and continue the route to Bozoi.

“We decided to route the transport via Shalkar to solve the first problem”, says Michail Underov, Head of Project Logistics at AO Militzer & Münch in Russia. “As this meant we had to go about 400 kilometers across the sandy steppe, we used special Kazakh four-wheel drive tractors with higher loading platform trailers.”

Shortly after passing the pipeline, Militzer & Münch, with the support of the local customs office, transferred the uncustomed goods from low bed trailers to the desert-proof trucks outside the customs warehouse. A bulldozer was carried along, too – in an emergency, it was to dig the trucks out of the sand if they should get stuck.

Teamwork pays off

“The cooperation between the teams was perfect”, says Natalie Andriyevskaya. “It was of big help that we share similar experiences and the same know-how. The perfect coordination of such a huge project across several country organizations is one of the special services that Militzer & Münch offers its customers.”

Once finished, the pipeline will measure 1,475 kilometers in length. The first part was taken into operation already in 2013, the second part followed in 2015. Construction start of the last segment, which includes several compressor stations, was ordered by the Kazakh government in 2017.

 

 

Servicing niche markets

There are countless logistic companies. So, in order to be successful as a medium size logistics provider in China, you need two things: a clear business plan, and a market niche – knows Glenn Bai, Managing Director Militzer & Münch China.

With exports of about 2.26 trillion USD, China was export world champion in 2017. For Militzer & Münch, this upward tendency of Chinese economy offers new opportunities. Due to the constantly growing e-commerce sector, Militzer & Münch transports increasing volumes of goods from China to Central Asia, Russia and Europe. For these traffics, Militzer & Münch also uses the New Silk Road trade lane.

Since taking office in 2013, Chinese President Xi Jinping has been pushing the development of the New Silk Road through his Belt and Road Initiative (BRI). China invests up to 1,000 billion USD in the construction and expansion of transcontinental trade and infrastructure networks between Europe, Asia and Africa. President Xi Jinping’s term of office is unlimited, which means continuity for the New Silk Road project among others.

“We are a specialist for transports along the New Silk Road.”

Glenn Bai
Managing Director Militzer & Münch China


Militzer & Münch with a new product on the New Silk Road 

Militzer & Münch benefits from the investments in infrastructure projects, too. In many countries along this trade lane, Militzer & Münch has been operating its own country units for years already. “We are a specialist for transports along the New Silk Road”, says Glenn Bai. “Thus, we organize exports of Chinese industrial plants to Central Asia, the Middle East and Africa. We also handle imports from Europe and the USA. To grow, we target niches like project logistics and the aviation industry.”

Militzer & Münch China is constantly extending its product portfolio to meet the customers’ requirements. The latest addition: an LCL consolidation box service via rail from Duisburg to Wuhan. For this freight consolidation or groupage transport, the team bundles and ships smaller consignments as LCL (Less Than Container Load). Militzer & Münch China is the only one in the market to provide this service on this route.

The transport starts from Duisburg every Saturday and is routed via Małaszewicze in Poland and Alashankou in China. Without customs clearance, the transit time is only 18 days. Currently, Militzer & Münch China mainly transports products for the automobile industry to Wuhan. Since the early 1990s, Wuhan has been regarded as a hub for the automotive industry, which accounted for 20 percent of the city’s economic strength in 2015. Yet Militzer & Münch China also wants to expand its new customer business.

Tianjin’s free trade zones offer potential

Strategically selected locations are also part of Militzer & Münch China’s clear cut business plan. The activities of Militzer & Münch in China’s North East, in the port city of Tianjin, are a good example. Here, Militzer & Münch operates the M&M Tianbao joint venture to be able to offer its customers warehousing services via partner Tianbao Logistics.

Tianjin offers numerous advantages to companies. This includes the many different free trade zones, where goods can be imported and exported without customs clearance or any other fees.

“Owing to the free trade zones, many companies from the aviation and automotive industry have settled in Tianjin – they are our potential customers”, says Glenn Bai. “Our customers welcome our strategy to enter into a joint venture in Tianjin and thus be in a position to offer local storage facilities.” From Tianjin, Militzer & Münch for instance delivers spare parts from Europe to Chinese airlines. Moreover, the city is home to China’s seventh biggest sea port. The proximity to the port is ideal for the Chinese team: in 2017, Militzer & Münch China generated 45 percent of its turnover with sea freight.

Glenn Bai
Managing Director Militzer & Münch China


Never losing sight of the clear plan 

With its products, Militzer & Münch China services niches in the market: whether it is the specialization on transports along the New Silk Road or offering the unique LCL consolidation box service via rail from Duisburg to Wuhan. Strategically chosen locations like Tianjin also support the clear plan that aims to offer customers optimal and tailored services. In order to be successful as one among numerous logistics providers, Militzer & Münch China makes use of these niches and of the huge potential of the Chinese market – thus pursuing a clear cut strategy.

Close cooperation for North Africa transports

For a German forwarder who has to handle traffics to North Africa, the cooperation with Militzer & Münch as a long-standing Maghreb specialist is an optimal solution. That holds true for a southwest German forwarder who transports rigid film for a local manufacturer in the pharmaceutical and food industries.

The customer’s order: The palletized goods are to be picked up at the plant, temporarily stored, and then shipped. As Militzer & Münch is well positioned in the Maghreb, the forwarder decided on cooperating with Militzer & Münch on these connections. The Militzer & Münch teams in France deliver the goods to Morocco, Tunisia, and Algeria.

The cargo is stored at a big warehouse in Breisach, Baden-Württemberg, until it is dispatched. For shipments over five tons, Militzer & Münch picks up the goods directly in Breisach. For cargo up to five tons, the cooperation partner delivers the goods from the warehouse to the Militzer & Münch location in Mulhouse. The French team routes the road transports headed for Morocco or Tunisia with the ro-ro procedure ex Marseille. Transports to Algeria go by sea, also ex Marseille.

Good coordination is essential

Most transports are destined for Tunisia. Since late May, Militzer & Münch France has already delivered seven thermo trailers, six part loads and four full normal trailers to the Maghreb. They also transported six 40 foot containers to Algiers and one 20 foot container to Oran (Algeria). “The project requires close cooperation and exact coordination with the forwarder and his customer”, says Bart Kok, Militzer & Münch Business Development Manager Maghreb. “We have a great cooperation.”

Heavy goods transport to China

Militzer & Münch China transported components of gas turbines for a power station from Antwerp in Belgium to Pingshan in China. The three 130-ton units were shipped, among others, by container vessel and articulated truck. The transport was executed by a team of Militzer & Münch Beijing in March and April.

During the project, there were several hurdles to be taken. First of all, for the loading and unloading of the container vessel, a floating crane had to be used with a capacity of up to several thousand tons. Once loaded, the parts were shipped to China. Owing to their weight and measurements, such components are normally transported via heavy-lift ship.

But due to their long years of experience and good contacts, the Chinese Militzer & Münch team succeeded in getting the cargo transported via container vessel. The transit time is only 35 days and thus much shorter than via heavy-lift ship. Port of discharge was Chiwan in Guangdong Province.

Specialized team

The transport team had to cover the remaining 200 kilometers to Pingshan in Guangdong Province by road. The Militzer & Münch employees obtained the necessary special permits and escort vehicles for the eight to ten-axle articulated trucks and trailers.

It was the first transport the new Militzer & Münch China projects team did for one of the biggest power corporations in China. “The project showed us that we have a very competent team here in Beijing”, says Glenn Bai, Managing Director Militzer & Münch China. “We look forward to further exciting projects of this kind.”

Specialization Militzer & Münch China

  • Individual solutions incl. consultancy on customs clearance and road permit requirements in China
  • Contacts to break-bulk carriers and port authorities
  • Execution of out-of-gauge and heavy-lift cargo shipments
  • Domestic road & barge transports
  • Special equipment

Maghreb – a high potential market

Tunisia, Algeria, Morocco – the Militzer & Münch Group is registering a marked increase in transports to the Maghreb region. In the past two years, the Militzer & Münch road transports from Germany to Morocco doubled, shipments to Tunisia even grew threefold. Customers also show increasing interest in transports from and to Algeria.

Association Agreements are in place between the European Union and Tunisia, Morocco and Algeria. Step by step, they are to be expanded and turned into Free Trade Agreements along the lines of a “Deep and Comprehensive Free Trade Area”. The relations between the EU and the Maghreb states Morocco and Tunisia are particularly close, although the two countries differ a lot in their economic setup:

  • Tunisia is highly industrialized and has good infrastructure. As per gross domestic product, industry is the second most important economic sector. According to the German-Tunisian Chamber of Industry and Commerce, the textile and garment industry is the strategically most important industry segment. 83.6 percent of the textiles produced in Tunisia are destined for export.
  • As a business location, Morocco boasts modern infrastructure and low production costs. Especially the automotive industry has grown over the past few years. The development of renewable energy sources is advancing steadily, too.
  • The economy in Algeria relies essentially on the production and export of oil and gas. At this time, the exports from the oil and gas sector account for about 98 percent of the country’s foreign exchange revenue. The government aims at creating more jobs outside this sector.

In 2016 Militzer & Münch opened a new customs terminal in Tanger, Morocco.

The French concept for success

Militzer & Münch started its activities in the Maghreb region already 35 years ago. “Especially the France-Maghreb trade lane is an important pillar of the Militzer & Münch Group”, says Dr. Lothar Thoma, CEO M&M Militzer & Münch International Holding AG. Marseille is the Militzer & Münch Tunisia hub – Bordeaux and Pusignan (Lyon) serve, among others, as trans-loading terminals for Morocco. A substantial share of the Militzer & Münch France transports is routed via the France-Maghreb trade lane. “What our French organization has already implemented successfully, we plan to transfer also to our units in Germany and Switzerland”, says Dr. Lothar Thoma. “With the business development team that was appointed for these two countries in September 2016, we expect good progress for both trade lanes.”

In addition, Militzer & Münch sees high potential for traffics to Algeria. In August 2016, the Algerian government passed a new investment law which offers incentives to foreign investors. Especially customers who are active in plant engineering for the oil and gas industry, more frequently enquire about Militzer & Münch transports. At this time already, goods destined for Algeria are consolidated in Marseille, loaded into containers, and shipped to Algiers regularly. Other direct departures are offered to the Algerian ports of Oran, Bejaia and Skikda.

Eichenzell, the pivotal point

In Germany, the Maghreb transports are mainly handled via the branch office at Eichenzell. Under the direction of Uwe Bierfreund, Branch Manager at Militzer & Münch Stockstadt and Eichenzell, the Eichenzell team controls the operational processes as well as sales activities, and prepares offers. “Compared to the Far East, the proximity of the Maghreb region to Western Europe is a big advantage, especially for the textile and automotive industries”, says Uwe Bierfreund. “We mostly opt for truck transports, but offer our customers air freight and ocean freight solutions as well.” For the most part, Militzer & Münch handles transports for the automotive, machine engineering, chemical and pharmaceutical industries. The cargo consists of medical equipment and electronics as well as upstream products for textiles, and finished textile products.

Groupage shipments and larger part loads are mostly transported door-to-door via road. For example, the Eichenzell team consolidates the goods for Morocco by Thursday evening. On Friday, the truck departs for the port of Algeciras. The transport reaches Tangier in the night from Saturday to Sunday. The Tunisia shipments process is similar. From Marseille or Genova to Tunis the goods are transported via ferry. There are additional departures for dangerous goods transports.

“For Militzer & Münch, the Maghreb states are, and will remain, one of our core markets”, says Dr. Lothar Thoma. “With our experienced teams in the Maghreb, Turkey, France, Germany and Switzerland, we will continue to be optimally positioned, to offer individually tailored transport solutions for the different industries.”

Dr. Lothar Thoma
CEO M&M Militzer & Münch International Holding AG

Investing locally

“The goods that are consolidated at Eichenzell for the Maghreb do not come exclusively from Germany, but also from neighboring procurement countries such as Poland or Finland”, Uwe Bierfreund explains. The Militzer & Münch Group continually invested in company-owned infrastructure in the Maghreb over the past years in order to continue offering customers comprehensive services. Among others, Militzer & Münch built a customs terminal in Tangier, Morocco in 2016. With 10,000 square meters, the terminal offers additional warehousing capacity and enables fast customs clearance.

The solid infrastructure and in-depth know-how of the Militzer & Münch units in Tunisia and Morocco are important pillars of strength for the growing business in the Maghreb. “For Militzer & Münch, the Maghreb states are, and will remain, one of our core markets”, says Dr. Lothar Thoma. “With our experienced teams in the Maghreb, Turkey, France, Germany and Switzerland, we will continue to be optimally positioned, to offer individually tailored transport solutions for the different industries.”

Green logistics in Morocco

In November 2016 – on the occasion of the UN Climate Change Conference in Marrakesh – Militzer & Münch Morocco was among the cosignatories of the first Moroccan charter for the advancement of ‘green’ logistics. By signing the charter, M&M Morocco voluntarily commits itself to environmental protection and sustainability. The charter was initiated by the state agency for the development of logistics (Agence Marocaine de Développement de la Logistique).
For more information, go to: www.amdl.gov.ma/amdl/accueil/

Militzer & Münch – a strong presence in the Maghreb

In Morocco, Militzer & Münch operates four locations:

Tangiers / Casablanca / Sapino / Tanger Port

There are three Militzer & Münch locations in Tunisia:

Radès (Tunis) / Carthage Airport / Sousse

The exciting Silk Road revival

China is well versed in mammoth projects. What the Chinese accomplished several centuries ago with the Great Wall is to be repeated in a similar way now. A gigantic investment package has been dedicated to the improvement of the transport network between Asia and Europe. Benefiting from the opportunities this entails, Militzer & Münch is developing new locations and road transport services in China and Central Asia. In some of the countries Militzer & Münch has already been operating for over 20 years.

The project to revive the Silk Road runs under the name One Belt, One Road (OBOR). For OBOR, China has set aside more than 100 billion dollars for the coming years. With this initiative – for the Chinese government, part economic and part political strategy – the Silk Road, which goes back to 2,100 years ago, is gaining importance again for today’s global transports. In ancient times, the route was already used for the goods trade between China and Europe. Yet it was not, as the name suggests, just one road strictly speaking, rather than a network of paths, major roads and secondary roads. They traversed countries that today are known as China, India, Pakistan, Afghanistan, Tajikistan, Kyrgyzstan, Turkmenistan, Uzbekistan and Turkey.

At that time, selling, forwarding and exchanging goods could take several years. Today, goods can be shipped from one continent to the other in just under 15 days. In ancient times, camels were the means of transport for overland transportation. Nowadays, they have been replaced by trucks and trains. An essential component of the OBOR initiative is the development of infrastructure. It comprises railway lines, roads, pipelines and deep sea ports. Moreover, huge industrial complexes are being built along the Silk Road, in China as well as in Central Asia.

In the Central Asian countries and in the Trans-Caucasian region, Militzer & Münch employs a staff of 200 – in China, the number of employees is 100. Militzer & Münch has a strong presence in China with seven operating branch offices, especially the longstanding branch office in Urumqi is an optimal gate for transports to Kazakhstan and Uzbekistan. The company aims at further reinforcing its presence in China and Central Asia as well as intensifying the traffics between the regions.

Bulking up business in China

By appointing new specialists to the management team, Militzer & Münch China took the first step towards expanding business along the New Silk Road. In September 2016 Glenn Bai was appointed Managing Director of the Chinese Militzer & Münch organization. At the beginning of the year, new colleagues were taken on board. Among them, industry experts Eric Wang, Director Rail Freight China, and Philip Wang, Director North China.

To further support the team, Militzer & Münch China hired Trade Lane Sales Manager Anna Boro in February. The focus of the Russian-born expert is set on the development of business between China, Russia and Central Asia along the Silk Road.

A new product has already been realized on the route from China to Central Asia: A container block train connects Xuzhou in Eastern China and the capital of Uzbekistan, Tashkent. For an industrial project, three transports were handled from China to Uzbekistan in January and February. The block trains carried steel coils in 20-foot -containers. Each transport only took 10 to 12 days from Xuzhou in the Jiangsu Province to Tashkent. On these orders, Militzer & Münch cooperated closely with sister company InterRail. Last year alone, InterRail operated approximately 280 trains from China to Europe along the New Silk Road.

“The One Belt, One Road initiative and the large sums invested in this context, we can expect to see numerous infrastructure projects in and around Central Asia”, says Glenn Bai. “We will take advantage of the opportunities to exploit the full potential of this highly promising market. Therefore we will cooperate with the Militzer & Münch organizations in Central Asia.”

The Silk Road Fund

About a year ago, China, as the world’s second largest economy, founded the Asian Infrastructure Investment Bank (AIIB), and a Silk Road Fund to boost infrastructure in Asia. China contributed 40 billion US dollars to the Silk Road Fund, and 50 billion to AIIB as seed capital. The other member nations also increased the financial means of the bank. Germany for instance contributed 4.5 billion US dollars.

Countries and projects

Militzer & Münch is one of the leading transport and forwarding service providers in Central Asia with locations in Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan and Turkmenistan. On February 1, Militzer & Münch set up a presence in Azerbaijan, too: A two-man delegation now handles local business. The market has good potential, mainly in standard transport business.

In Tajikistan, Militzer & Münch recently won two big projects. One is a long-term contract that comprises the delivery of the merchandise for a bed and furniture chain with six or more truckloads per month. In the initial phase in December and January, Militzer & Münch Tajikistan handled 17 road transports from Poland to Tajikistan.

The second project is for a hydropower station for which Militzer & Münch transports components. The water power dam is being built on the River Vakhsh that crosses Tajikistan from North to Southwest – it constitutes an important energy source for the country. Militzer & Münch will transport about 180 to 200 truckloads to Tajikistan, 30 of which with an over height of 3.4 meters (cf. “News in brief” in the PROJECTS section.)

In Kazakhstan, the economic situation is turning back to normal after the devaluation of the Kazakh tenge. “The market has become stable again and Militzer & Münch profits from the fact that transports are slowly increasing”, says Nikolaus Kohler, Regional Managing Director Middle East / Central Asia. “We feel optimistic that, especially after the World’s Fair Expo 2017 in Kazakhstan, project business will gather speed again.” In view of big Chinese e-commerce companies, which also count the inhabitants of Kazakhstan among their customers, the B2B business sector is growing. With its own CEP service in Kazakhstan, Militzer & Münch is optimally positioned for a growing number of shipments in this segment.

The logistics industry looks to Uzbekistan with optimism, too. Although owing to currency regulations, so far there has been scarcely any security for foreign investors. One can assume that new paths are opening up for the country under the leadership of the new President who was voted into office in December 2016. “Our hope is for the currently existing capital constraints to be relaxed step by step, which again would pave the way for investments”, says Nikolaus Kohler.

Overland transports save time and money

The Chinese government has already convinced more than 60 countries of its OBOR project. The overland route boasts two clear advantages over sea and air transport: Shipments by train take about 20 days less than by vessel and are much cheaper than by plane.

While precious fabrics, porcelain and oriental spices were transported along the old Silk Road, the New Silk Road is meant for the transport of electronics, branded products, automotive parts, textiles and many more goods. At this time, there are ten departures a week for the full container loads that Militzer & Münch and InterRail are transporting via rail from China to Europe and vice versa.

Projects along the Silk Road

  • Azerbaijan: A natural gas pipeline is to run from Azerbaijan through Turkey to Europe. The 2,000 kilometer pipeline, planned by the “Trans-Anatolian Natural Gas Pipeline (TANAP) Project”, is under construction.
  • Tajikistan: The improvement of the border road from Dushanbe in Tajikistan to Uzbekistan is under way.
  • Pakistan: To improve the connection between Central Asia and the ports of Gwadar and Karachi, the Shorkot-Khanewal motorway section is being completed to become a four-lane wide and 64-kilometer long road. The project is to help guarantee efficiency and safety in the transport corridor.

InterRail – business prospects

InterRail – a company specialized in rail freight and a Militzer & Münch sister company under the umbrella of the TransInvest Group – has defined three important trade routes for its business activities:

  • Along the East-West axis, InterRail aims to become one of the most successful booking agents.
  • Along the so-called “Old Silk Road”, the China-Central Asia-corridor, the pioneer test trains are to be expanded into regular train connections.
  • The same goes for the North-South corridor, where additionally, regular block train traffics are to be set up.

InterRail added diverse new products and routes to its portfolio, especially during the past 24 months. They include open trains to be loaded with single containers or container groups, but also LCL traffics from China to Europe and special wagon transports between Russia and Central Asia. In terms of geography, InterRail introduced new train connections, for instance from China to Afghanistan, the CIS, Latvia and recently also to the United Kingdom.