Militzer & Münch grows in Germany

Including the new branch in the Ruhr district, the Militzer & Münch network now comprises 16 locations across Germany, thus covering the important logistics regions in the country. And there are plans for further growth.

Germany is one of the most important logistics markets worldwide, and was once again appointed top logistics location among 160 countries by the World Bank in 2018. This fact is also mirrored in the business development of Militzer & Münch. In 2017, Militzer & Münch generated above-average growth in the fields of air and sea freight as well as in road traffics.

This development also enables Militzer & Münch to further expand its network: at 16 branches, Militzer & Münch Germany now employs a staff of roughly 250 that take care of their customers’ needs. The service portfolio comprises project logistics, air and sea freight as well as the handling of road and rail shipments and transports along the New Silk Road. In all these fields, there is potential for growth.

 

 

A strong location in the Ruhr district

This spring, Militzer & Münch expanded its network in Germany by opening a new location in North Rhine-Westphalian Sprockhövel near Wuppertal, where Militzer & Münch offers international logistics services mainly to customers from the Ruhr district.

The Militzer & Münch team in Germany already has interesting large orders. “To give an example: For an internationally operating do-it-yourself chain, we supply their branches in Slovenia, Croatia and Bosnia”, says Tom Rosman, Managing Director M&M Militzer & Münch GmbH. “And for a leading technology corporation, we handle rail freight services between China and Germany”, adds Marc Pinheiro, Managing Director M&M air sea cargo GmbH.

Two companies – one goal

The two operational German Militzer & Münch units, M&M Militzer & Münch GmbH and M&M air sea cargo GmbH, both under the umbrella of M&M Militzer & Münch Deutsche Holding GmbH, work in close cooperation.

“Together, we are expanding the service portfolio for our customers in Germany, and we aim to continue growing”, says Tom Rosman. “With the introduction of a new CRM (customer relationship management) system, our activities have become more transparent and can be more easily coordinated.” Currently, Militzer & Münch Germany mainly serves the following sectors: consumer goods, industrial commodities, technical engineering, and automotive.

Plans are also to continue expanding the traffics to and from Tunisia, Morocco, Algeria, Turkey and Russia in the course of this year. To achieve this, the team in Germany cooperates closely with colleagues from the other country units of the Militzer & Münch Group handling, among others, extensive logistics projects.

Germany is “Logistics Champion”

  • For the third time in a row, Germany was selected top logistics location among 160 countries by the World Bank (2014, 2016, and 2018).
  • Decisive criterion is the Logistics Performance Index, LPI. Here, on a scale from 1 to 5, Germany reaches 4.2 points.
  • There are six factors that are evaluated for the LPI: customs clearance, infrastructure, service quality, the price of international shipments, the possibility for tracking shipments, as well as the frequency of goods reaching their destination on time.
  • Germany is especially strong in terms of infrastructure, where the country again tops the list.
  • Rank 2 among the top logistics locations is held by Sweden, with Belgium being third.

More services with the Rail Competence Center

For all rail transports between Europe and China, the new Militzer & Münch Rail Competence Center (RCC) is not only an important interface to the customer, but also to all country units. Michael Spitzlei and his team are working from Dusseldorf, Germany.

The demand for rail transports between China and Europe has been rising steadily for years – a development that is also noticed by Militzer & Münch. Thus the group’s rail transports are all handled via one central point of contact – the Rail Competence Center. Since the beginning of 2018, Militzer & Münch has regarded the RCC in Dusseldorf as a branch in its own right.

 

 

The advantages of the RCC are obvious: Militzer & Münch customers profit from the many years of experience the team combines. “We are familiar with the various import and customs regulations and the different rail track gauges of the countries, and we know how to obtain licenses and certificates”, says Michael Spitzlei, Head of the Rail Competence Center at M&M air sea cargo GmbH. Rail freight from Europe to China takes only 18 to 20 days, which is faster than sea freight and cheaper than airfreight.

An increase in FCL and LCL transports

“We are glad that our services have been so well received”, says Michael Spitzlei. “On the connection Europe-China, we registered a rise of about 30 percent in the full container load segment in the year-on-year comparison. With less than container loads, we even had a 50 percent increase.” The newest service: on the Duisburg-Wuhan route, Militzer & Münch offers rail transport of LCL consolidation boxes with departures from Duisburg every Saturday.

The RCC Team handles eastbound and westbound rail traffics in cooperation with other Militzer & Münch country units. That makes it easier to individually meet customer requirements. Via Militzer & Münch locations in North, West and South Germany, customers from all over Western and Eastern Europe can handle their freight.

The Rail Competence Center – contact details:

Person of contact: Michael Spitzlei
M&M air sea cargo GmbH
Ungelsheimer Weg 6
40472 Düsseldorf
Germany
Phone: + 49 211 43 71 86 0
Fax: + 49 211 43 71 86 25
mumairdus@mumnet.com

New country organization in Sri Lanka

Back in 2015, Militzer & Münch started operating in Sri Lanka via a delegation office. The local team witnesses the growing importance of the country as a logistics location – a good reason to found a country unit here.

Over the past few years, Sri Lanka has become a logistics hub on the maritime Silk Road in South Asia, also owing to the generous expansion of the Port of Colombo. Initially, Militzer & Münch tapped the country´s potential via a delegation office.

Now, Militzer & Münch founded its own country unit in Sri Lanka. The inauguration of the new location was celebrated in May 2018. From here Militzer & Münch offers its customers comprehensive services in the South Asian area.

 

The team serves a niche market

At the new location, Militzer & Münch handles sea freight transports to the regions of the Indian Ocean and Asia. The portfolio of Militzer & Münch Sri Lanka also contains the consolidation of shipments as well as transports to Europe: among the goods are tea shipped to Ukraine, Belarus, Russia, and Denmark, and airplane tires destined for Belgium, Germany, Russia, Denmark and Great Britain.

The five-person team moreover offers standard transportation, airfreight and comprehensive solutions for complex projects. “With shipments to the CIS countries, we additionally serve a niche market”, says Dilum Stembo, Managing Director M&M Militzer & Münch (Pvt) Ltd. “For the future, we are planning to add door-to-door transports to Europe and the USA to our services.”

Logistics in Sri Lanka

The logistics sector in Sri Lanka is constantly gaining momentum. The country’s government has decided to meet the requirements of modern logistics and to sustainably strengthen the sector. Since 2008, the Port of Colombo has been massively expanded. The concept is bearing fruit: The “Liner Shipping Connectivity Index 2017” of the United Nations Conference on Trade and Development UNCTAD declares Sri Lanka one of the best connected countries for sea freight in South Asia – which makes the Port of Colombo one of the most important logistics hubs in the region.

Heavy lift, long distance

22 transformers and associated equipment from Shanghai to Port Sudan – that was the order for Militzer & Münch China. The heaviest cargo weighed 67 tons – the total weight of the goods was too much for a normal bulk carrier.

The customer, a company from the energy and utilities sector, needed the transformers for the construction of several transformer stations. The volume of the freight: circa 11,000 cubic meters, the equivalent of around 78,500 water-filled bathtubs – a challenge for the team.

“The obvious solution: we used a heavy lift carrier for the transport”, says Sara Zhang, Project Operation Manager M&M Beijing. “That allowed us to cover the 7,000 sea miles smoothly.” For Militzer & Münch China, this break bulk shipment was the first order from the customer, and also the first transport to East Africa.

The transport had been planned in detail beforehand so the entire freight could be collected at one point and shipped out simultaneously. “Not only the transformers, also the associated equipment differed a lot and came from several places of origin in China”, says Sara Zhang. “A time-consuming endeavor; but together our team and our local partner coordinated the project perfectly and cooperated successfully to handle the transport within the time frame set by the customer.”

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.

Liquid foods perfectly packaged

For a worldwide operating producer of packaging solutions headquartered in France, M&M France transported three big machines to dairy plants and beverage producers.

The transport to Omsk was especially urgent – the customer needed the delivery of several machine components to be perfectly synchronized. Militzer & Münch assigned two teams for the project, organized block customs clearance as well as the parallel delivery of all modules. In no more than twelve days, the trucks covered the 5,500 kilometer distance to the Siberian metropolis.

Two more plants went to Krasnodar in Southern Russia, and Samara in the country’s South East. It took two drivers per truck seven days to cover the 4,000 and 3,500 kilometers.

Close cooperation

Employees from the manufacturing company supported the loading and supervision of the modules in Le Havre and Lagny. The customs clearance of the door-to-door transports was done by the customer’s agent.

The project was not the first successful cooperation: in 2014, Militzer & Münch France already handled a transport to Russia for the producer of packaging solutions. Follow-up orders are already in sight – among others, with transports to Tashkent, the capital of Uzbekistan.

Attracting: Militzer & Münch as 4PL provider

Militzer & Münch Greece has added 4PL to its portfolio. The first big contract comes from a US fashion label.

Militzer & Münch Greece’s Managing Director Panagiotis Manolopoulos and Commercial Director Efi Moucha are personally involved in the project. With their team, they ensure that the store shelves in the big shopping malls and at international airports are always well stocked with lingerie and beauty products from the USA.

“We are the control tower for the distribution in Europe”, says Panagiotis Manolopoulos. “We organize all transport, storage, order picking and logistics services for the European representative of the brand.

From the US, the goods reach Denmark by sea freight container. They are temporarily stored by a forwarder with a big Europe-wide network selected by M&M Greece. The Danish location is the hub for the distribution of the goods across Europe.

Militzer & Münch Greece is closely connected to the Danish partner, has an eye on all orders received in Denmark at all times. Some transports are handled by the Danish partner; others are executed by Militzer & Münch organizations or third parties. “We can offer the customer the optimal solution for each country – within the Militzer & Münch Group, but also externally”, says Efi Moucha.

Furniture for new stores is also among the goods transported. In Athens and Thessaloniki, Militzer & Münch already supplied two boutiques.

Aiming at expansion

“Adding 4PL services to our portfolio helped us a lot in the past few months, mainly in view of the economically difficult situation in Greece”, says Panagiotis Manolopoulos. Plans are to expand the business eastward. First transports already went to the United Arab Emirates.

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.

Deeply rooted in Eurasia

What are the current customs regulations between Belarus and EU? How to transport temperature-sensitive goods safely from Asia to Europe? Which is the fastest route from Ukraine to China? Don’t ask just anybody; ask the Militzer & Münch specialists.  Eurasia runs in their blood.

Each of the Militzer & Münch organizations in Ukraine, Belarus and Uzbekistan boasts over two decades of experience. “And this is what distinguishes our Group”, says Dr. Lothar Thoma, CEO M&M Militzer & Münch International Holding AG. “We have strong roots in Ukraine, Belarus and Uzbekistan, our managers and employees have created the organizations there.”

Be it the language, logistic challenges, laws or customs formalities – the Militzer & Münch teams are thoroughly familiar with all that. Giving proof of resilience and expert know-how, the Militzer & Münch country units have secured a safe position in the logistics industry of their country, each branch characterized by deep roots and individual strengths.

Belarus: Success with the company-owned fleet

25 years of Militzer & Münch Belarus: in 1993, with a five-member team, Simone Barch and Viktor Blazhukevich opened the first Byelorussian office in Minsk, the capital of Belarus. Today, SOOO M&M Militzer & Münch Belarus employs a staff of 400 at eleven locations and steadily follows its growth course. In 2017, M&M Belarus started construction on a logistics center in the northeast of Minsk, near the Minsk MKAD ring road.

“With our own fleet of 180 vehicles, we offer comprehensive logistics services, including hazardous materials and valuable goods transports as well as customs clearance”, says Viktor Blazhukevich, Managing Director Militzer & Münch Belarus.

In 2001, Militzer & Münch Belarus added national express services to its portfolio – the first company to offer this service in Belarus. Today, the team handles over 40,000 express shipments per month. The big sorting plant within the new logistics center is urgently needed.

 

 

Ukraine – a well attuned team

25 years of Militzer & Münch Ukraine: in 1992, Militzer & Münch Ukraine GmbH was founded in Kyiv; branch offices in Boryspil and Odessa were inaugurated  a few years later. “All in all, we now count a staff of 36”, says Viktor Korol, Managing Director  M&M Militzer & Münch Ukraine GmbH. “Many of our employees have been with us for over 15 years already. The often long-time cooperation within the teams generates efficient service and collaboration based on trust.”

The EU is the most important market for Militzer & Münch Ukraine, but growing trade between Ukraine and Asia causes rising demand for transports to Asian destinations, with especially sea transports increasing; but air freight, too, is highly popular at this time. “On demand, we handle complete transports including customs clearance”, Viktor Korol says. “For us, the customer’s satisfaction is always top priority.”

 

Uzbekistan transports pharmaceuticals, too

20 years of Militzer & Münch Uzbekistan: M&M Militzer & Münch Uzbekistan S.C., founded in Tashkent in 1997, offers the entire logistics service palette. Whether road transports or rail freight, airfreight or sea freight, the 15-member staff of Militzer & Münch Uzbekistan always finds the ideal transport solution for their customers.

“At request, we do complete transports from warehousing to customs management”, says Khurshid Kasimdzhanov, Managing Director M&M Militzer & Münch Uzbekistan S.C. “Apart from nationwide distribution, we also offer weekly groupage shipments from Europe to Central Asia. But for the majority of our activities, we focus on project logistics.”

Militzer & Münch Uzbekistan has also specialized in the transport of pharmaceutical goods. “With pharmaceuticals, an end-to-end cool chain is decisive”, Khurshid Kasimdzhanov says. “If the cool chain is interrupted even for a short time, the entire cargo is in jeopardy. Other strict quality standards have to be met, too, to protect the sensitive goods – our teams are well-versed in this field.”

The world’s longest railroad line

The world’s longest railway connection crosses eight time zones. Covering over 13,000 kilometers, it runs from Yiwu in Eastern China to Madrid in Spain. InterRail, a Militzer & Münch sister company, offers regular transports along the record route – also to the benefit of Militzer & Münch customers.

When compared to air and sea freight, the overland transportation comes with two advantages: rail transport is decisively faster than sea freight and much more cost-efficient than air freight. On the longest freight train connection of the world, the container block trains usually transit eight countries: Spain, France, Germany, Poland, Belarus, Russia, Kazakhstan and China.

Along the route, the containers usually have to be transshipped several times, as there are three changes in rail gauge. With transports such as these, all processes have to be coordinated a hundred percent.

No problem for Militzer & Münch. Nikolaus Kohler, Regional Managing Director Middle East / Central Asia, is responsible for the Militzer & Münch national subsidiaries in the region. ”We are deeply rooted in many countries along the New Silk Road – this plays an eminent role for our customers”, says Nikolaus Kohler. “Not only can we offer them flexible solutions on the freight train connection from China to Europe and vice versa, we can also offer them solutions for the markets along this route.

 

Pioneer InterRail

InterRail was the pioneer with container block trains between China and Europe. The first open trains were operated in 2014 by InterRail affiliate TransRail Belarus between Chengdu, China, and Łódź in Poland. As a neutral operator, InterRail also started the train connection from Yiwu to Europe in 2015, with such prominent destinations as Madrid, London or Prague. InterRail also works for other platforms in China like Wuhan, Zhengzhou, Chongqing, Xi’an and others.


Race track for fashion, food and electronics

In most cases, these containers carry consumer goods from China for Spain. Yiwu is the world’s biggest trading platform for numerous products such as textiles and electronic devices. And the Chinese market again is supplied with Spanish ham, wine, water and olive oil. Rail traffic is very important for China – with a destination in Eastern or Southern Germany for instance, rail traffic saves the detour via the ports of Hamburg or Rotterdam.

The transition from Asia to Europe poses a challenge. The railway network in Europe is used to full capacity, border crossings are especially precarious. Here, controls and operative changeovers usually take longer than in China or Kazakhstan.

China invests billions

At least 900 billion US dollars – that’s the amount the Chinese government has set aside or already invested in projects along the New Silk Road. Over 60 countries are involved in the project. Owing to the Belt and Road Initiative (BRI), roads, railway lines, pipelines, power stations, telecommunication networks, ports and airports are being constructed or modernized from Asia to Europe and Africa.

Prospects for further projects along the New Silk Road are good. In November 2017, the annual meeting of 16 European countries plus China was held for the sixth time already. At this meeting in Budapest, the capital of Hungary, China took the opportunity to promote its “New Silk Road” project. Chinese Prime Minister Li Keqiang promised a three-billion dollar investment for Eastern Europe, thus supporting the further realization of infrastructure projects in numerous countries.

How German companies can benefit

The Belt and Road Initiative entails a far-reaching modernization of the global economy. The German business community, too, can profit from the mammoth project. To advise German enterprises of the opportunities, Germany Trade & Invest (GTAI) and the Association of German Chambers of Industry and Commerce (DIHK) initiated an information campaign.

In the paper “Neue Seidenstraße – Chinas massives Investitionsprogramm” (The New Silk Road, China’s massive investment program), reasons are given why it is important to participate in the New Silk Road project.

Introducing a new HGV toll

The German Federal Government’s legislative draft for the new HGV tolling scheme is stirring up the logistics industry. As of July 2018, the road toll is to be extended to include all 40,000 kilometers of federal roads – at the moment the road toll only applies to motorways and a few federal roads. For many logistics companies, this means an additional financial burden.

According to the government, the new toll regulation will generate approximately two billion euros of extra revenue per year. The legislative draft does not yet indicate the exact charge per truck. The government aims to facilitate the financing of federal roads and to improve traffic infrastructure.

At this time, trucks are obligated to pay toll for about 15,000 kilometers of motorways and some federal roads. With the new law, the number of kilometers will more than double. About 130,000 additional trucks will be affected by the amendment – given the currently 1.6 million vehicles, it’s an increase by eight percent. Electric trucks will most probably also be included in the new toll scheme.

New toll terminals

By the end of May 2018, the old toll stations are to be disassembled or shut down to be replaced by new, modernized terminals. Construction of the 1,100 new toll terminals already began in December 2017.

“For the logistics industry, this change of course means higher costs, but at the same time it promises an improvement of the road infrastructure”, says Dr. Lothar Thoma, CEO M&M Militzer & Münch International Holding AG. “Investments are urgently needed in Germany. Conditions are disastrous in some areas, endangering the German economy and thus indirectly the economy in the whole of Europe.”

Momentarily, the truck toll is only compulsory for trucks exceeding a maximum permissible weight of 7.5 tons. But this might change with the new toll scheme. The draft leaves the possibility to include smaller trucks between 3.5 and 7.5 tons as well as long distance busses.

HGV toll in other countries

Nowadays, almost all European countries levy a charge for using their motorways and federal roads. There are two types of road toll: each truck is either charged by distance or time. In England, the Netherlands, Sweden and Bulgaria the toll has to be paid for the time spent on the road; whereas in countries such as Germany, Switzerland, France, Belgium, Poland, Spain and Italy, the charge is based on distance travelled on toll roads.

To compensate hauliers for the toll fees, the German government promises the goods transport industry to continue providing up to 450 million euros per year in financial assistance for employment, qualification as well as environment and safety programs.

New subsidiary in Algeria

Logistics business with Morocco and Tunisia has been successful for years. Militzer & Münch France in particular is the leading forwarder to and from the Maghreb countries, relying on its close cooperation with the well established Militzer & Münch Morocco and Militzer & Münch Tunisia teams. Algeria transports have also continually been on the rise. This is why Militzer & Münch decided to open a subsidiary in Algiers, the capital of Algeria.

For the new country unit, Militzer & Münch cooperates with a renowned shareholder active in international transportation. “For us as a specialist in Maghreb traffics it was only a matter of time before we founded our own subsidiary in Algeria”, says Dr. Lothar Thoma, CEO M&M Militzer & Münch International Holding AG. “With our long-time organizations in Morocco and Tunisia and now with the new setup in Algeria, we are going to consistently develop our Maghreb activities. Our clearly defined objective is to even better tailor our services to this special and challenging market.”

For Algeria, Morocco and Tunisia, Militzer & Münch offers services that go far beyond mere transportation. Thus, the Maghreb solutions comprise, among others, weekly groupage transports of hazardous goods, packaging and quality control, labeling and order picking as well as container stowing at the company-owned 5,000 square meter logistics terminal with 17 loading docks in Vitrolles, France.

The Algerian market

Algeria, the largest of the Maghreb states, has approximately 41 million inhabitants. The People’s Democratic Republic of Algeria is rich in resources – currently, oil and gas exports account for 60 percent of the state revenue. With 85 percent of the goods flows being imports, the market is characterized by an export-import imbalance. Contrary to other Maghreb countries, there is not much relocation of production.

In order to reduce the dependency on the oil and gas sector with its drastic decline in prices, the government aims at enforcing economic diversification. It opens up the country for export; the mining of iron ore and phosphates is to be increased while at the same time, industrial production is to go up, too. Country-wide, industrial cluster zones are being established. All this will benefit the transportation industry and, in the long run, balance the volumes of Europe-Algeria and Algeria-Europe transports.

To the Maghreb and back

Militzer & Münch France has entered into a partnership with Davies Turner, a leading forwarder in the United Kingdom. The objective: developing the traffics between the United Kingdom and the Maghreb states.

The collaboration started in early October. In cooperation, both companies offer groupage transports as well as full truck load traffics. Militzer & Münch France handles imports and exports between the UK, Morocco and Tunisia as part of the partnership. The Algeria transports handled are mostly exports.

The advantage of the cooperation: Militzer & Münch can offer its customers additional transport capacities from and to the United Kingdom, while Davies Turner can further develop its access to the Tunisian and Algerian markets. Davies Turner already operates successfully in the textile sector in Morocco, but will nevertheless profit from the Militzer & Münch expertise in coordinating industrial goods flows via Militzer & Münch Morocco. Finally, Militzer & Münch Morocco facilities in Casablanca and Tangier may offer its clients customs clearance solutions in private bonded warehouses.

Transformer on Tour

How to get a huge transformer for a new power station to cover a 2,000 kilometer distance? The Militzer & Münch team in China had the solution: on a 20-axle bridge trailer.

The order for the heavy lift transport came from the Chinese electric utility company. Militzer & Münch organized the complete door-to-door transport from the manufacturer’s plant in Boading, northern China, to the construction site in Tianshui. At 450 tons, the transformer was too heavy for a standard low platform trailer; on the axles of the bridge framework trailer, the weight was evenly distributed.

Precise preparation

To make sure the roads can bear the high strain, the team did a preliminary road survey for the entire distance. Only then were they able to apply for a special authorization to use the roads. Militzer & Münch had to obtain a special permit from each of the four provinces the transport crossed – Hebei, Neimenggu, Ningxia and Gansu.

In order not to overly hinder traffic, a large part of the distance was covered by night. The bridge trailer covered the 2,000 kilometers in 15 days. An escort vehicle accompanied the transport from start to destination.

Azerbaijan: first transports

In March 2017, Militzer & Münch opened a representation in Azerbaijan. Business is doing well: different industries are already relying on Militzer & Münch‘s Middle East expertise to import their products to the landlocked country in the Orient.

Nijat Shabanly and Nasimi Mammadov represent Militzer & Münch in Baku. About six months after the office was taken into operation, Nijat Shabanly looks back on a successful initial period: “So far, we’ve handled groupage transports form Germany, Italy, Belgium and Turkey”, he reports. “But we also had a full truck load transport from Germany and a refrigerated shipment from the Netherlands.” Among the handled goods are products for the food industry, the baby care- and the cosmetics industries, as well as goods for the construction and medical engineering sectors.

By now, Militzer & Münch Azerbaijan was able to realize even more transports – for example full truck load shipments with equipment from Rotterdam, Netherlands, and from Heinsberg, Germany, to Azerbaijan. The team also successfully works in air shipments and collaborates with Militzer & Münch offices in Istanbul, Frankfurt, Hannover and Balice (Poland).

First project

The two employees in Azerbaijan already handled a big project successfully as well: they organized the transport of tiles in 41 containers from Foshan, China, to Baku. The boxes went via sea from Foshan to Poti, Georgia. From there, the freight was hauled via road to the destination in Baku. Total transit time was 40 days.

The two Militzer & Münch representative’s confidence about the future is owed to big infrastructure projects in Azerbaijan: the international Baku-Tbilisi-Kars (BTK) railway project, the new port of Baku, and the new railway connection between Baku and the Iranian border.

“These projects will positively impact the logistics landscape in our country.”

Nijat Shabanly
Representative from M&M Militzer & Münch in Azerbaijan

The BTK railway project was launched to directly connect Azerbaijan, Georgia and Turkey. Kazakhstan and Turkmenistan can be connected to the new railway as well via the Caspian Sea. The official opening ceremony took place in the end of October.

“These projects will positively impact the logistics landscape in our country”, says Nijat Shabanly. “We are confident that Militzer & Münch will benefit from them, and that we can soon offer our customers additional destinations. These infrastructure projects will also contribute to turning Azerbaijan into an important transit country.”

The international Baku-Tbilisi-Kars railway project (BTK) connects Azerbaijan, Georgia and Turkey directly. Kazakhstan and Turkmenistan can be connected to the new railway as well via the Caspian Sea.

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.”

Refreshments delivered by Militzer & Münch Tajikistan

In June, Militzer & Münch Tajikistan signed a one-year contract with a soft drink manufacturer. The customer operates a bottling plant in Dushanbe, the capital of Tajikistan, and needs his products to be distributed nationwide.

In 5, 10 or 20 ton trucks, the soft drinks are delivered from the Dushanbe factory to over 20 consignees. Most delivery destinations are distribution centers in the greater Dushanbe and Khujand areas and in Khatlon province. Some transports go directly to supermarkets and gas stations. On average, the Militzer & Münch team Tajikistan loads and handles five to ten truckloads per day. In the first month alone, the volume transported amounted to 191 full truck loads.

Extending the service

“We are very happy with the project and hope to be able to extend the transport volume soon, also across borders”, says Aziz Sharipov, Managing Director M&M Militzer & Münch Tajikistan. “We are currently discussing this intention with our customer.” The negotiations are about a delivery service from the bottling plant in Dushanbe to Lahore and Peshawar in Pakistan, with transit via Afghanistan.

Tajikistan – fast facts

Population: 8,921,000
Capital: Dushanbe (ca. 780,000 inhabitants)
Topography: More than 70% of the area is high mountain ranges
Form of government: presidential republic with two-chamber parliament
President: Emomalij Rahmon (since 1994)
Economy: The economy relies mainly on the cultivation of cotton. The cultivation of grain, vegetables, fruit and tobacco plays a minor role. The most important export commodity is aluminum. Tajikistan is landlocked, which hampers economic development.
Infrastructure: Tajikistan’s many mountain ranges make the development of transport infrastructure rather difficult. Owing to the Trans-Caspian Railway, Dushanbe, the capital, is linked to the international railway network. The railway connects the city via Tashkent in Uzbekistan with Moscow in Russia.