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.

A successful team effort

Chewing gum, sweets, and tooth paste – three totally different items. And yet, they have one thing in common: they can all contain xylitol. In June, Militzer & Münch transported this food additive from Dezhou in China to Poznań in Poland.

Sweet and fresh on the tongue – that’s what xylitol tastes like. The chemical is used by the ton in the food industry, where it goes by the code E 967. Militzer & Münch’s order was to transport powdered xylitol from the production site in China to a food manufacturer’s plant in Poland.

“We developed a highly effective, multi-modal transport chain for this project.”

Glenn Bai
Managing Director Militzer & Münch China

For this project, the staff of Militzer & Münch in China arranged the road and rail transport from Dezhou to Malaszewicze, the central rail trans-shipment hub in Poland. The longest part of the journey was done by rail: the 25 sealed containers were transported on board seven trains. In Malaszewicze the team of Militzer & Münch Poland took over. The bonded containers were hauled to the destination in Poznań by road.

“We developed a highly effective, multi-modal transport chain for this project”, says Glenn Bai, Managing Director Militzer & Münch China. “A combination of road and rail transports is optimal for the leg between China and Poland. Thus, the transit time was only 20 days.”

Safety specifications implemented

Since xylitol is a chemical substance, strict safety regulations must be observed. Especially owing to the detailed SOP (Standard Operating Procedure), the cooperation between the Polish and the Chinese teams was exemplary. The team at the Qingdao branch in China had provided the material safety data sheet SOP.

“The cooperation was perfect”, says Glenn Bai. “We are proud we succeeded in developing our rail service and our product portfolio with this first transport ex Dezhou.” So far, Militzer & Münch China had concentrated on full container load (FCL) transports from Zhengzhou and less than container load (LCL) transports from Yiwu. Right now, Eric Wang, Rail Freight Director M&M China, is working on additional destinations ex Wuhan, Chongqing, Zhengzhou and most recently also ex Dalian in Northeast China.

Xylitol – low calorie and tooth-friendly

Xylitol is mostly used in the food industry; its code is E 967. It serves as a naturally occurring sugar substitute that can be produced in trees, plants, vegetables, fruits, but also in humans via their sugar metabolism. Xylitol is used, among others, in toothpaste for caries prophylaxis. German chemist Emil Fischer discovered xylitol in the late 19th century. He later won a Nobel Prize in chemistry for his research in the field of sugar chemistry.

High-Tech from Brazil

More than 9,000 kilometers from Brazil to Poland: in summer, Militzer & Münch Poland coordinated the transport of machinery for a new paper factory. This marked another step in the cooperation with the customer, one of Brazil’s leading manufacturers of machinery for the paper industry.

The Polish Militzer & Münch team handled the door-to-door transport from the manufacturer’s plant in Brazil to the factory of a leading Polish paper product manufacturer in collaboration with long-time Brazilian logistics partner Pirâmide SeaAir. The print cylinders, steel frames and screens are part of a production line for the new paper factory. The factory produces, among others, greeting cards, children’s coloring books and paper gift bags.

Apart from the transport, the Militzer & Münch team and their Brazilian logistics partner did the customs clearance and coordinated the loading and lashing of the bulky goods. In Mid-June, the 18 containers – 40-footers as well as flat racks – reached Gdansk safe and in time.

“We are happy that the customer chose us for the project.”

Artur Wojtczak, Business Development Manager M&M air sea cargo S.A.

Thanks to the new road department in Warsaw, Militzer & Münch also delivered 15 additional full truck loads with machinery and parts within two days from Slovakia and Italy to the building site at Iława.

Successful cooperation

“We are happy that the customer chose us for the project”, says Artur Wojtczak, Business Development Manager M&M air sea cargo S.A., Warsaw. “I’m sure our experience, the short transit times and the high safety and security standards we guarantee have played a role there, too.” Militzer & Münch Poland already handled several projects for the manufacturer in recent years.  With the heavy lift transport from Rio do Sul to Iława, Militzer & Münch Poland successfully continues its cooperation with the Brazilian company.

The pearl of the Baltic Sea

Owing to its situation on the Baltic Sea, the Hanseatic City of Gdansk is a popular logistics location. Gdansk has been known as a place of trade since the Hanseatic era. The main industries: ship building, the petrochemical and chemical industries as well as high-tech. The Port of Gdansk is Poland’s major port and still an essential transshipment hub for the entire country, with about 3.6 million tons of goods transshipped in June 2017 alone.

“I am aware of my great responsibility.”

Russia is not only the largest country in the world by surface area, it also shares land borders with 14 neighboring states – unique factors that come with special challenges for the team of Militzer & Münch Russia. Marina Dshegrij told us how the employees master them, how the new US sanctions on Russia impact the business, and the objectives Militzer & Münch Russia is pursuing. Marina Dshegrij is Managing Director of Militzer & Münch Russia. She has been with the company since 2010.

What did you do before you joined Militzer & Münch? What made you choose the logistics sector as your profession?

I was with logistics services provider Schenker RUSSIA for 15 years. Directly after graduating from university, I began working there and was soon promoted from an employee position in operations to deputy director. I have always known what field I wanted to work in. My father was in logistics, too, so I could not have imagined myself working in any other job.

What is the biggest challenge in your position? 

One of the challenges is to accurately predict the market behavior. We have to keep an eye on the continually changing industry and develop a suitable strategy for our company. What is important today may be obsolete tomorrow. Doing business in times of stagnation or of sinking market activities is a challenge for staff and management.  We have to invest the profits we generate wisely in the future of our company.

Internationally, the logistics industry is more or less a male domain. What are your experiences as a woman in your position in this sector?  

I feel good. Nowadays, women hold leading positions in governments. Thus, women in management are not so exotic any more.

What are the main projects implemented in the 2017/18 business year? 

We are introducing new software. At this time, this is our top priority.
It will improve our attractiveness in the market and increase productivity.

“We regularly organize the complete delivery of big production lines – we offer our customers all services from planning to operative implementation.”

Marina Dshegrij, Managing Director Militzer & Münch Russia

What are the main industries Militzer & Münch Russia is working for? 

We are active in numerous sectors. Our most important customers come from the automotive industry, from consumer goods production, equipment goods and microelectronics.

Are there any unique selling points that Militzer & Münch can boast and that maybe even distinguish Militzer & Münch from the competition?

Apart from services in transportation, warehouse logistics and customs clearance, we are also highly active in the field of project transports. We regularly organize the complete delivery of big production lines – we offer our customers all services from planning to operative implementation. Moreover, we have many years of experience in the transport and storage of highly sensitive equipment in so-called clean rooms. For numerous sports associations, we transport equipment to competition sites. Another point that distinguishes us additionally is our internal travel agency. It allows us to offer our customers an almost complete service-portfolio – from one source from the transport of goods to arranging a business trip.

The USA has decided to impose new sanctions against Russia. In your opinion, does this impact the transport business of Militzer & Münch?

The sanctions impact the situation in Russia: investments from the West decrease, the share of investments from the South East increases, the market re-orients itself, for instance towards domestic production. Of course, all this affects diverse industries and also the transport logistics sector. We are aware of these changes and try to adapt quickly to the new conditions.

Russia is the largest country in the world by surface area and an extremely vast country. What challenges does this entail for goods transports?

The Russian Federation extends from west to east over 10,000 kilometers, from north to south over 4,000 kilometers. The entire country covers an area of more than 17 million square kilometers and spans eleven time zones. Advanced traffic infrastructure is not available at all locations, which creates differences in the goods flow in different parts of Russia. We have to always know exactly when, how and by which transport mode the goods can be transported to the region in question. This adds to the workload and impacts delivery dates and costs. The demands on logistics are constantly rising – yet those are challenges we like to meet.

Russia shares borders with 14 neighboring states, with China being one of them. Does this entail advantages for the logistics sector? 

The proximity to many other countries is of course propitious to goods exchange – our main focus however is on the further development of the transit goods flows through Russia. Owing to our infrastructure – the quality of ports, airports and roads as well as the complexity of border and customs clearance – we are not able to fully tap the potential at this time. But we are already registering positive developments.

What countries and regions does Militzer & Münch Russia have especially close business relations with? 

The largest goods flows come from Germany and China. This is also mirrored in the official statistics on the trade between the countries. Goods turnover between Russia and China accounts for 14 percent, between Russia and Germany for eight percent of the country’s entire goods turnover. Accordingly, our business relations with Germany and China are very intensive.

What are your objectives for Militzer & Münch Russia?

To me, it is important for Militzer & Münch to remain a successful, dynamically developing entity. I am aware of the great responsibility I have for our 300 employees. Our customers, but also our staff, are to feel well cared for and look to the future with confidence.

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

Three flatbed trucks to Fergana

For a supplier from the automotive sector, Militzer & Münch transported a production line from Spain to Uzbekistan: thereby the costumer can curve and temper glass for automotive sidelights and taillights. The teams of Militzer & Münch in Nurnberg, Germany and Tashkent, Uzbekistan, cooperated on the project.

The partner of Militzer & Münch in Spain, Altius S.A., commissioned the shipment to Militzer & Münch Uzbekistan. In March 2017, eight standard trucks and three flatbed trucks started the 7,000 kilometer journey from Northern Spain to the Uzbek part of Fergana Valley.

The trailers boarded the parts of a furnace for curving and tempering automotive sidelights and backlights glasses. The transit time from Aller in the Spanish Asturias to Fergana was about 16 days.

Strict entry requirements project

For security reasons, access to the Fergana valley is strictly regulated for foreign trucks. “As finding an Uzbek carrier in Spain was difficult, we had to look for another option,” says Nelly Djurabaeva, Traffic Manager, Militzer & Münch Uzbekistan, who headed the project. “Together with Denys Gumenyk, head of the Nurnberg projects team, we worked out a route to Fergana with entry into the valley via Osh in Kyrgyzstan. Foreign trucks could use this route to enter Fergana without reloading. The transport went smoothly.”

Setting a good example project

After the successful handling of the comprehensive transport from Spain to Uzbekistan, the team at Militzer & Münch Belarus also used the route recommended by their colleagues – although from another point of origin. This time, ten trucks transported parts of textile machinery from Northern Italy to Fergana, again via Osh, Kyrgyzstan.

The Fergana Valley

  • Densely populated valley in Central Asia, situated between the Tien Shan and Alay mountain ranges
  • It lies mainly on Uzbek and partly on Tajik and Kyrgyz territory
  • More than 10 million people live in the valley that is about 300 kilometers long and up to 110 kilometers in width

Regular traffics to the Maghreb

Cooperating and pooling of forces: On May 1, the Militzer & Münch Group and Andreas Schmid Logistik AG started their joint venture “MMAS Eurasia Logistic GmbH” (MMAS Eurasia). The joint venture offers regular traffics to the Maghreb countries and Turkey. 

The joint venture is headquartered at Gersthofen in the Bavarian Augsburg administrative district, about 80 kilometers to the North West of Munich. Andreas Schmid operates three branch offices in Bavaria and Baden-Wurttemberg, and is the regional market leader for domestic truck transports with an area-wide transportation network in Southern Germany. 

“With the supplementary capacities offered by the joint venture, we can further develop our international door-to-door services”, says Dr. Lothar Thoma, CEO M&M Militzer & Münch International Holding AG. “Especially in the economically thriving South of Germany, we register high demand for international transports. In Andreas Schmid, we have a reliable and potent partner to meet this demand.” Since the beginning of May, MMAS Eurasia has been handling several departures per week from Gersthofen to Morocco, Tunisia, Algeria and Turkey.

A win-win situation 

To Militzer & Münch, the joint venture offers extra transport capacities. Andreas Schmid profits from the well-founded know-how and the outstanding international transportation network of the Militzer & Münch Group. “Owing to the dense local networks of the Militzer & Münch Group, we can offer our customers excellent service in Turkey and the Maghreb states”, says Gianluca Crestani, Member of the Board, Andreas Schmid Logistik. “The Maghreb states hold great perspectives for German enterprises that we can additionally support with perfect local logistics.”


Marked increase in Maghreb transports

There are excellent perspectives in the Maghreb states: Morocco, Tunisia and Algeria are offering numerous chances for German companies. The Maghreb region is an important trade partner especially for the automotive and textile industries. Militzer & Münch is experiencing a sharp increase in transports to this region. The Militzer & Münch Group’s truck traffics between Germany and Morocco for example doubled in the last two years, traffics from and to Tunisia even rose three-fold.

Transit country Turkey

As a transit country between Europe and Asia, Turkey plays an important role for international logistics. “The Turkish government’s investments in the country’s infrastructure are further pushing the demand for transports”, Dr. Lothar Thoma says. In Turkey, the Militzer & Münch Group operates four locations, among others in Istanbul and Izmir.

Additional destinations

With the joint venture, Militzer & Münch and Andreas Schmid add numerous additional destinations to their regular truck traffic network. The joint venture moreover complements the long-standing collaboration of Militzer & Münch with the groupage cooperation CargoLine. Militzer & Münch uses the CargoLine network mainly for international transports to and from Germany and Western Europe.

In May, the Militzer & Münch Group launched the joint venture “MMAS Eurasia Logistic GmbH” (MMAS Eurasia) with Andreas Schmid Logistik AG.

Electricity Vietnam

Smartphones, vacuum cleaners, and electric railways – they all run on electricity. And where there’s electricity, insulators are needed, for example to fasten transmissionlines to the transmission tower. Militzer & Münch Ukraine was able to win a producer of polymeric insulators as a customer, and now transports insulator parts from Shanghai to Ukraine, and forwards the finished goods to Vietnam.

The contract was already signed in the beginning of June 2016 for a duration of three years. “New customers with regular transport orders are extremely important to us, as this strengthens our market position”, says Yuliya Bezverkha, Marketing & Sales at Militzer & Münch Ukraine.

European quality at very low prices

Militzer & Münch Ukraine’s customer designs and manufactures polymeric insulators for current  lines, open switching stations and substations as well as AC overhead  lines for railways. The insulators are produced in the Donetsk region according to international safety specifications before they are exported to Vietnam.

“The most important advantage of products produced in Ukraine is European quality at Chinese prices.”

Yuliya Bezverkha
Marketing & Sales, Militzer & Münch Ukraine

For the manufacturing process, the company relies on equipment from Germany, Switzerland, and from other leading foreign suppliers. The machinery allows fully automating the basic manufacturing processes. “The most important advantage of products produced in Ukraine is European quality at Chinese prices”, says Yuliya Bezverkha. The finished products are then exported. The insulators that go to Vietnam are roughly 1.5 meters in length and weigh four kilograms each.

Import and export from one source

Militzer & Münch Ukraine handles the import as well as the export for their customer. “We import parts from Shanghai to Ukraine, mainly via sea freight in 20 foot containers, sometimes also via air,” says Yuliya Bezverkha. “The goods we transport are fastening elements that connect the insulators to the current line and the transmission tower.”

After they have arrived in Ukraine, the goods are trucked from the Port of Odessa or Kiev Airport to the production factory in the Donetsk region. Here, the polymeric insulators are produced and packed in wooden boxes for on-forwarding. The finished insulators are transported to Ho Chi Minh City, mostly by air.

During one year, the M&M Ukraine team shipped more than 15 tons in airfreight and 51 in sea freight in imports from Shanghai, and more than 24 tons by air and 50 tons by sea in exports to Vietnam. “We appreciate the trust the costumer puts in us”, says Yuliya Bezverkha.

What are insulators?

Insulators must offer high mechanical stability, but very low electric conductivity. In order to combine these two components, insulators are made from solid insulating materials such as aluminum oxide ceramics, porcelain, glass, glass-fiber reinforced plastics or epoxy resins.

Insulators are used to fasten or guide bare electrical conductors. The current flow through the fastening element is inhibited to the largest part. Insulators used in the open, for instance on transmission towers, big antennas or substations, moreover have to be durable in view of ultraviolet radiation and weather variations.

Hydropower for Central Asia

Sustainable energy supply: About 100 kilometers north of Dushanbe, the capital of Tajikistan, a dam is being built on the river Vakhsh. The Militzer & Münch Group handles the door-to-door transport of the components for two gas-insulated switchgears for the hydropower station, which is part of the dam.

Once finished, the Rogun dam will be the world’s tallest river dam, measuring 335 meters in height. The Rogun hydroelectric station is to supply several regions of Central Asia with electricity. Six 600-megawatt turbines will produce about 13.3 billion kilowatt hours of electricity per year. In the switchgears, the electric energy is distributed or transformed, which prevents overload and shorts.

Secured cargo

In the course of this year, Militzer & Münch transports numerous parts for two switchgears by truck to the Rogun dam construction site. The project is handled by the Militzer & Münch team in Nuremberg. Components for the switchgear systems come from Germany, Turkey and Poland.

The total weight of the parts amounts to 1,800 tons. On the long transport routes, the 180 to 200 trucks – 30 of them with an over height of 3.4 meters – cross several narrow mountain passes. At many passages, there’s the danger of falling rocks or avalanches. Therefore, the packaging of the goods must be heavy-duty and secure for transport, so that the cargo arrives at the destination undamaged.

Perfect coordination

In order to meet the timelines of the construction schedule, the Militzer & Münch team coordinates 20 to 25 truck transports per week. The customs clearance is done by the consignee.

Electricity from water power

  • In 1867, the Frenchman Benoît Fourneyron developed the first practicable water turbine.
  • In 1866, Werner von Siemens invented the electro-dynamic generator that was able to convert movement into electric energy.
  • The first hydropower plant to generate electricity was built in England in 1880.
  • In 1895, the world’s first large hydropower station was taken into operation at the Niagara Falls.
  • In Europe, the first water-powered stations were built in Rheinfelden on the Rhine in 1898.

Militzer & Münch France in best hands

Guillaume de Laage de Meux (48) joined the Militzer & Münch Group twelve years ago. He is now Managing Director of Militzer & Münch France and Regional Managing Director South West Europe / Maghreb. We had the opportunity to talk with him to learn more about his area of responsibility and also to get to know him personally.

How long have you been with Militzer & Münch? 

I started at Militzer & Münch France in January 2006 as Deputy Managing Director. In this function, my responsibility was the restructuring and development of the organization. This gave me the opportunity to become more familiar with the structure of the Group. In 2009, I was appointed Managing Director. In 2014, I took over the position of Regional Manager for the South West Europe (SWE) / Maghreb region. At the same time, I was elected into the Group Management of M&M Militzer & Münch International Holding AG.

How would you define your function within the Group?  

My foremost function is to develop business in the SWE / Maghreb region in a profitable way and to guarantee the continuance of our organization also in view of occasional setbacks and a business environment that changes faster and faster.

On the other hand, it is of course also part of my obligation towards the shareholders every year to reach the financial targets defined for me – especially via the budgets, but also by my setting a steady course for profitability, stability and growth.

After all, I also bear considerable social responsibility towards the 400 Militzer & Münch employees in our region. It is my task to safeguard jobs, and to ensure the professional development of employees within the Militzer & Münch Group.

Can you tell us more about the start of your career and what made you go into the logistics sector?

After I finished the commercial college in Bordeaux, I completed my officers’ training at the French Army and obtained a diploma as a controller/accountant at the same time. I finished my academic studies after serval years of work experience with an MBA (Master of Business Administration) at Cranfield University, Great Britain.

It was a logical step to begin my professional career in the controlling and finance sector in the international transport industry. As I like working in this field, I was soon promoted to head the profit center in France and abroad.

What is the biggest challenge in your position?

The biggest challenge is mastering the balancing act between the requirements of daily business and the necessity to come up with clear and relevant ideas for the further development of Militzer & Münch in our region.

Another challenge is being present for the teams and cultivating the relations to all locations in the region. Here, I profit from having highly competent, hard-working and independent Country Managers within our organization who support me.

How do you divide your time between managing Militzer & Münch France and heading the SWE / Maghreb region? 

Taking into consideration my obligations as member of Group Management as well as the fact that I basically serve as an intermediary between the Militzer & Münch Holding and the countries of our region, the following allocation of my time applies more or less: 50 per cent for managing Militzer & Münch France, 30 per cent for the matters of the SWE / Maghreb region (Morocco, Tunisia, Algeria, Italy), and the remaining 20 per cent  for my obligations as member of the Group Management of the Militzer & Münch Group.

What are the most important projects to be realized in the 2017/18 business year? Can you name some specific examples for France, Italy and the Maghreb countries?

In France, we have set up our own customs agency to improve our customer service and to increasingly offer our customs management services. Another important project is the relocation of our Paris branch with the aim to prepare our growth for the next 15 years unhurriedly. The existing warehouse at the Paris location has become too small and has limited us both in the handling of the traffic and in the potential business with new customers. With the new location, our property is growing by 60 percent, and we double the number of our loading ramps. In addition, the location offers more space for office areas: if necessary, we can double the number of employees. Since it is only seven kilometers away from our present branch, our employees have no disadvantages.

In Algeria, we will have the opportunity to continue on our strong growth course in this country by founding our own location in Algiers.

Moreover we aim to greatly intensify our relations to India and Malaysia within the region – mainly with an extremely promising partnership that we are going to establish soon.

This list is of course incomplete, and we are thinking of new projects that we want to realize in France, Morocco, Tunisia, Algeria and Italy all the time. The entire Group is extremely dynamic and prepared to reinvent itself every day.

Are there any specific targets you want to reach? 

It is our target to reach the budget goals agreed on, and I am confident our countries are on the right track.

“On average, I visit two locations in the region per week, and that is as it should be. We embrace a family-like business culture where all local managers are very active and serve as important role models.”

 

Guillaume de Laage de Meux, Managing Director Militzer & Münch France, Regional Managing Director South West Europe / Maghreb.

Emmanuel Macron won the presidential election. Are you anticipating a positive economic impact for the logistics industry in France and specifically for Militzer & Münch France? 

One thing is certain: the fact that he was elected president is good for the worldwide image of France, and we all hope that this fresh breeze will also have a positive effect on economy. From the standpoint of Militzer & Münch France, a reduction in corporate tax and a liberalization of the French labor law would certainly be welcome.

The trade with the Maghreb states gains more and more importance for Europe. In your opinion, what needs to happen for the trade relations to develop even faster? 

It’s really simple: we need economic and political stability in order for the close relations between the Maghreb states and France to develop. With its locations in the Maghreb, Militzer & Münch is an important and renowned player in the region; it meets all the requirements to become the market leader, especially in Morocco and Tunisia.

Do you travel a lot in your region? What role do these business trips play? 

On average, I visit two locations in the region per week, and that is as it should be. We embrace a family-like business culture where all local managers are very active and serve as important role models.

Summer is near – where do you like spending your vacation?

To me, summer vacation is the chance to relax in Charente-Maritime with my family and also to spend some days with my wife, just the two of us, as she doesn’t see me  a lot during the rest of the year.

Apart from your career, what is your biggest passion or your favorite hobby? What do you do to “recharge your batteries”?

In spite of the many business trips, I try to exercise regularly and to spend as much time as possible with my five children to see them grow.

Quality Managers meet in Athens

From March 29 to 31, the Militzer & Münch Quality Management Conference was held in Athens. The Quality Managers of the Militzer & Münch Group discussed optimization potential and defined new strategies of quality assurance.

“Preparing for things ahead: Transition from risk to chance” was the motto of the conference that united 20 local and regional Militzer & Münch Quality Managers in the Greek capital. “When it comes to Quality Management, we need to be flexible and to improve continually”, says Dr. Lothar Thoma, CEO M&M Militzer & Münch International Holding AG. “To this aim, we keep an eye on the tendencies and developments of international logistics. That way, we can individually tailor our services to meet each customer’s requirements, and always offer the highest quality.”

 

 

New Quality Management norm

Focus at the conference was on the transition to the new Quality Management norm. The current DIN EN ISO 9001:2008 standard expires in September to be replaced by DIN EN ISO 9001:2015. Militzer & Münch is going to implement the new norm in the course of this year. The major changes:

 

  • Quality strategy and quality objectives have to correspond to the strategic orientation and the context of the organization.
  • Customer orientation includes new target groups.
  • A process-oriented approach and comprehensive, systematic process management gain more importance.
  • Group Management is to be more committed to Quality Management.
  • For risk management, organizations will have to identify, analyze and evaluate risks and chances; counter-measures have to be designed and implemented.
  • Knowledge management: a systematic management of knowledge is required. The knowledge necessary to execute processes has to be determined, maintained and made available to all employees.
  • With the new norm, digital communication is allowed. So far, a printed version of a manual to document Quality Management was required.

Higher customer satisfaction

To assure quality, DIN EN ISO 9001 uses a PDCA cycle approach (see illustration). “Once the PDCA cycle has been gone through, it begins afresh”, says Kadir Kizkapan, head of Group Quality Management, M&M Militzer & Münch International Holding AG. “By constantly checking, we guarantee the continual improvement of the quality of our processes and thus higher customer satisfaction.”

Identifying risks

Another central topic at the conference was risk management. “At an organization that operates internationally like Militzer & Münch, various potential risk factors have to be taken into consideration for the specific countries”, Kadir Kizkapan says. “In their function, our Quality Managers therefore observe numerous political, socio-economic, ecologic and cultural aspects of their specific regions.”

Big success

The conference ended with a preview to the year 2017, with the participants discussing the pending changes, and the objectives of the Militzer & Münch Group. Kadir Kizkapan says: “We are very happy with the result of the conference. Our Quality Managers drew up highly promising suggestions and approaches to optimize quality assurance at Militzer & Münch.”

Transparent supply chains

Interesting lecture: at the Board Dialogue 2017 in Hamburg on April 6, Dr. Lothar Thoma, the CEO of M&M Militzer & Münch International Holding AG, gave a speech on “Global Supply Chain Partnerships”. Managers, directors, supervisory and advisory board members were in the audience. The speech discussed the question how a control tower can contribute to a logistics company mastering the challenges of today’s economy in the best possible way and offering the customer a transparent supply chain.

Globalization and the staking out of free trade zones, digitalization and industry 4.0, political and economic eruptions and upheavals – how to seize opportunities in this world that increasingly becomes more complex? A question that haunts politics, industry, economy and trade – and of course also logistics. Especially from logistics, supply chain management across all borders into the most remote regions of the world is expected. And even here, customers want to check per mouse click at any time where the goods they have ordered are at the moment.

Owing to digitalization, shipment tracing has already become possible in most developed markets: per mouse click, the customers can access the desired information concerning their delivery process. Based on end-to-end networking, modern supply chain management shows every step in the transport across country borders.

Showing the transport chain

Militzer & Münch guarantees end-to-end supply chain management to the remotest areas – also without being able to rely on the usual IT structures. With big-dimensioned projects or challenging transports, Militzer & Münch places so-called control towers at the customer’s disposal. These control towers consist of a team of experts where for the sake of superordinate coordination and planning, all threads are drawn together. Control towers would provide the necessary infrastructure for end-to-end supply chain management, said Dr. Lothar Thoma in his lecture. Via email and phone, the employees are in intensive contact with the carriers, and enter the data in a data bank. Thus, the entire transport chain is transparently traceable for the customer.

Control tower for a Kazakhstan project

Using the example of the transport of a complete production line for a float glass factory to Kazakhstan, it is easy to demonstrate how the strengths within an organization can be bundled, and coordinated with the help of a control tower. All in all the entire Militzer & Münch door-to-door project took ten months. Transports from three continents and eleven countries had to be organized. Each shipment had to be exactly synchronized with the customer’s assembly schedule. The freight comprised 8,000 tons of fire resistant material for the construction of the melting furnace, plus 700 additional container loads of equipment.

The multi-modal transport of the containers via vessel, train and truck took between 14 and 30 days depending on place of origin and transport mode. All contracts and transport documents had to be drawn up in accordance with the (tariff) regulations of the Eurasian Economic Union (EAEU) comprising Kazakhstan, Russia, Belarus, Armenia and Kyrgyzstan. Various country units within the Militzer & Münch Group performed the different processes the transports went through during the project. The responsibilities of the control tower for this project lay with selected employees at the Stockstadt location.

Bundling forces

The control tower comprises the Militzer & Münch country units and also involves the cooperation with partners. To bundle forces inside and outside the organization, Militzer & Münch would bank on partnerships, Dr. Lothar Thoma emphasized. Internally, across the entire TransInvest Group, as well as with third parties in Europe and worldwide. By collating competencies, bundling strengths and creating functional networks, extraordinary and big projects can be mastered successfully. Also possible gaps in the IT structure can be bridged that way.

Under the umbrella of TransInvest Holding, Militzer & Münch cooperates with sister companies such as the InterRail Group, a specialist in CIS rail traffics, on a regular basis. Apart from that, Militzer & Münch has entered and developed cooperations with external partners for decades.

Chances offered by the New Silk Road 

The combination of control tower and strategic partnerships is also important in relation to the New Silk Road. The Chinese government invests several hundred billion US dollars in the BRI (Belt and Road Initiative) to boost the revitalization of the trade lanes around the old Silk Road. In the Central Asian neighboring countries, numerous infrastructure projects can be expected, and with them great potential for logistics companies to optimally handle far-reaching projects with intelligent supply chain management.

Board Dialog

Board Dialogue (German: Board Dialog) is a regular event of the Board Academy for managers, directors, supervisory and advisory board members. It took place for the seventh time in April 2017. The Board Academy is an initiative for qualification, integrity and social responsibility in supervisory boards and advisory boards. With a certification program, it prepares managers, directors, supervisory and advisory board members for the challenges at the modern-day board workplace.

More information: www.board-academy.com

Boosting growth – with road transports

Whether from East to West or North to South – many transit routes cross Poland. So for Militzer & Münch, adding road transportation services to the portfolio of the Polish M&M air sea cargo S.A. was a logical step. 

In mid-January, Radoslaw Brejnak joined Militzer & Münch in Poland as Manager Road. From the Warsaw office, he will set up sales and operational structures for the new business segment during the initial phase of the project. Plans are to set up road departments also at the Kraków and Wroclaw locations.

Radoslaw Brejnak is a logistics expert and has many years of experience in business development and in the road segment. He is optimistic that Militzer & Münch will profit from Poland’s dynamic development of the logistics market, especially of the road freight sector. As many transit routes lead through Poland, the intensive cooperation with other Militzer & Münch country units is part of the plan.

 

Militzer & Münch Poland’s road services include full truck load, groupage and part load shipments – both in import and export – temperature-controlled transports and the transport of dangerous goods (ADR) as well as express and just-in-time delivery.

In transit

Poland has long been a transit country for international transports. As far back as in ancient and medieval times, important trade routes crossed the country in Central Europe, such as the Amber Road and the European leg of the Silk Road. Today, numerous transports of goods traverse Poland. The Polish government is planning to invest several billion euros in the development of road infrastructure by 2023.

More capacities for industries

Tailored concepts for the Swiss industry: In January, the Militzer & Münch Basel team took on experts for transports to Central and Eastern Europe to expand the service portfolio.

From Basel, Militzer & Münch has long handled air, sea and road transports for Swiss customers. The Basel location was opened over 30 years ago. The services comprise global goods transports with a focus on Eastern Europe, Central Asia, the Caucasus region, the CIS, Turkey, Greece and Maghreb. Groupage, part loads and full loads as well as worldwide import and export container shipping are offered to internationally operating customers.

In order to be an even stronger partner to Swiss industry, Militzer & Münch decided to expand their existing portfolio. Transports to Poland, the Czech Republic, Hungary and Slovenia are in high demand, especially with the chemical and pharmaceutical industries. The new employees are all specialists in Central and Eastern Europe and have lots of experience with these regions. They come with the optimal prerequisites to develop concepts for individually tailored transports to the four countries and to offer comprehensive consulting services to their customers.

Basel is regarded as a center of the chemical and pharmaceutical industries. Situated in Central Europe, it is an optimal point of departure for international transports headed eastwards. Therefore, Militzer & Münch banks on a long-time partner: the groupage cooperation CargoLine.

 

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

Big delivery to Kazakhstan

Loaded with everything a hotel has to provide, 30 containers are crossing entire continents. The Militzer & Münch branch office at Eichenzell serves as the control tower for the scheduling, coordinating, handling and monitoring of the goods flow. The project is to be finished in April.

The project involves four continents: Europe, Asia, Australia and the United States. The transports from the different countries to Kazakhstan, the place of destination, can take between 22 and 70 days – depending on where the transport starts. In a first step, the majority of the products go to Eichenzell, via airfreight, via sea or road. Once they arrive, the goods are trucked to Duisburg, where they are loaded onto trains and shipped to Astana in Kazakhstan. The train ride takes 20 days.

It’s all about cooperation

In cooperation with sister company InterRail, the Eichenzell Militzer & Münch team dispatches some 30 containers. The forty-footers are carrying a cargo of totally diverse goods: From furniture and electric appliances, toiletries and fitness equipment to kids’ toys and many more. The Militzer & Münch locations in Frankfurt, Hamburg and Berlin are involved in the entire process as well. Regarding the truck transports, Militzer & Münch Eichenzell cooperates with CargoLine and other partners.

Militzer & Münch draws up the documents for the customer: From packing lists to commercial invoices and export declarations. They also check the import licenses and any necessary certificates. This is essential, as the suppliers are sending their goods to Europe; while the goods then are headed for Kazakhstan. With the original documents, the goods cannot be cleared in Astana; so the paperwork had to be translated into Russian.

 

Astana, the second largest city in Kazakhstan

  • Astana was proclaimed capital of the country in 1997.
  • The city has 814.401 inhabitants (data from 2014).
  • The majority of the big buildings were built since 1998.
  • Over the past 20 years, a new government quarter, shopping malls and business centers, apartment buildings and museums were erected. By December 2013, about 32 billion US dollars had been invested in the capital’s development.
  • An additional boost for urban development is owed to Expo 2017, the World’s Fair that is held in Astana. The Kazakh capital invests in the development of traffic infrastructure and other projects to cope with the large number of visitors  coming to the fair and  a further increase in population.
  • Owing to its situation in the middle of the country, Astana holds a special position as a traffic hub.