Wagons from Belarus on Hungarian railway tracks

For a leading Swiss manufacturer of rolling stock, Militzer & Münch Switzerland transports components to Belarus for the assembly of rail wagons, and to Hungary for interior fitting. The wagons are to be used for passenger transport on the Hungarian railway network.

Over the last few years, the rolling stock industry has profited from a steadily increasing total market for new railway vehicles. While in 2012, the turnover was at 48 billion EUR, it reached 55 billion EUR in 2017. This global growth also benefits the Militzer & Münch customer, who manufactures customized railway vehicles for his clients, meeting their individual requirements in terms of interior design as well as in terms of technology.

The construction material Militzer & Münch transports for the customer comes from different countries and covers everything that is needed for the construction of railway wagons. The freight includes aluminum profiles, toilets, brakes, switches, cables, foamed plastics and textiles.

Militzer & Münch Basel serves as control tower

“Several Militzer & Münch teams cooperate on this project so we can offer the customer the best possible transport solution”, says Nikolaus Kohler, Regional Managing Director Middle East / Central Asia. “We use the Militzer & Münch Belarus truck fleet. Militzer & Münch Basel coordinates the entire project; the Basel team also does the customs clearance. We also use our Eichenzell location as a consolidation hub for goods from Europe.”

Since January 2018, the Militzer & Münch team has handled about four to five full truck loads (FTL) from Switzerland to Belarus per week. From Eichenzell, another two to three FTL transports are dispatched to Belarus per week.

There are plans to extend the weekly transport volume to 15 full truck loads destined for Belarus and Hungary. “We are pleased with the volume of this order, and with the complexity that comes with it”, says Nikolaus Kohler. The big project is scheduled to run through December 2019. The customer has already announced further transports, this time to Azerbaijan.

An individually tailored IT solution

One special feature characterizes the wide-ranging project: thanks to the in-house IT company ‘MMcom’, Militzer & Münch can offer the customer an IT solution that is optimally designed to meet his requirements. Via the IT platform, the goods flows from different countries of origin via two consolidation hubs to the destinations in Belarus and Hungary are registered and mapped. Per remote data transmission, the system indicates in real time which shipments have been received at the warehouses in Switzerland and Eichenzell, and collates them into packing orders.

New service to Algeria

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

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

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

Top performance every day

Since 1996, Olivier Antoniotti has been responsible for M&M Militzer & Münch Maroc S.A. as Managing Director. He has substantially contributed to the successful development of the company. In this interview, he talks about how he joined Militzer & Münch 25 years ago, and provides insight into the Moroccan logistics industry. 

What was your motivation to work in the logistics industry?

I did not specifically plan to work in the transport and logistics sector. But when I did my civilian service from 1993 to 1995 as part of a cooperation program at Militzer & Münch Morocco, I knew this job is my vocation.

Thanks to the support of some managers at Militzer & Münch France, I was able to evolve and grow in the company. Every day, I look forward to going to work. With joy and passion, I want to deliver excellent results every day.

Career start at Militzer & Münch

Olivier Antoniotti completed four years of studies at a business school in Lyon, with an exchange year in Barcelona. Then, instead of doing his military service, he served two years at a French company abroad – at M&M Morocco, where he worked in sales from December 1993 to April 1995. After that, he was offered permanent employment as a sales representative.

In 1996, the then Managing Director wanted to leave the company. So, the Board of Directors proposed appointing Olivier Antoniotti Managing Director of Militzer & Münch Morocco. “Of course, I was happy to take on this challenge, looking forward to the tasks ahead”, says Olivier Antoniotti. “It’s a decision I have not regretted to this day – especially when I look at all the hard work we´ve done, and the success of Militzer & Münch in Morocco.”

What are your tasks as Managing Director M&M Militzer & Münch Maroc S.A., what are the biggest challenges? 

I firmly believe that the position of Managing Director comes with a very important responsibility towards the group, but also towards all its employees, customers, partners and shareholders. Not only do I have to ensure that our development is in line with the standards of the Militzer & Münch Group, I also have to provide the strategic framework to ensure a successful future for Militzer & Münch.

I think the best examples are the many investments since 1996 that turned Militzer & Münch Morocco into a renowned logistics services provider in the Kingdom of Morocco.

What were the most important milestones for Militzer & Münch Morocco? 

Apart from the fact that we have a great team of highly qualified employees, the history of Militzer & Münch Morocco history can be summed up in some important events: The opening of the first bonded warehouse in Morocco in February 2000.

  • The creation of our Spedimex transit subsidiary in 2001.
  • The construction of our Casablanca platforms in 2003, Tangiers in 2008 and 2016, as well as Sapino Nouaceur in 2012.
  • Recognition of our work by the Moroccan Transport Federation of the IRU (International Road Transport Union) with the “Award for Road Transport Managers 2013 – Morocco”.
  • The creation of a network of 20 weekly groupage lines in collaboration with the Militzer & Münch network and its partners.
  • The creation of our Air & Sea and Logistics department.
  • And finally, our recent AEO / Safety & Security certification, which places us among the leading group of operators.

All these projects, implemented entirely by Militzer & Münch Morocco, were very extensive, and today make Militzer & Münch Morocco a key player in the market.

The team of M&M Militzer & Münch Maroc S.A.


Militzer & Münch Morocco voluntarily commits to environmental protection and sustainability. What does this commitment look like in everyday business?

In November 2016, Militzer & Münch Morocco was indeed among the cosignatories of the first Moroccan Charter in favor of green logistics. In concrete terms, we have already implemented this commitment by incorporating the new standards into the construction of our Tangiers customs terminal, for instance by installing a solar water heater and glazed roof panels to use natural light. Moreover, we use a system to recuperate all the water on the premises. We upgraded all our trucks to Euro 5 and Euro 6 standards, the forklifts in our warehouses are 100 percent electric. To summarize, I can state that we put our commitment to green logistics into practice every day.

What are Militzer & Münch Morocco’s goals?

Over the past few years, we enhanced our infrastructure. In order to develop strategically, we had to upgrade our IT system. This is important to face such challenges as digitalization – also in relation to our documentation chain in accordance with the new regulatory requirements – or tracking and tracing. We also have to meet the growing demand of our customers in these fields. By modernizing our tools, we will be able to lead Militzer & Münch into a profitable future.

Militzer & Münch opened a new customs terminal in Tangiers in 2016. How is business developing here?

We see a very strong development of our business in Tangiers. This corroborates our decision to settle there on a long-term basis so we can meet the growing demand for transport and logistics.

How do you assess the potential of the logistics sector in the Maghreb region?

Morocco is currently experiencing a very important economic development, especially thanks to such sectors as the automobile and aeronautics industries. As we have been present in Morocco since 1986, we appreciate this progress all the more greatly. Thanks to the current modernization of the economy, including the administration, we see the economic development in the Kingdom in a very optimistic light. Morocco is and will remain a country where the economic climate is favorable to the development of Militzer & Münch Morocco.

“We’ve come a pretty long way”

Wojciech Łyżwiński has been with Militzer & Münch Poland for more than a quarter-century. This year will be his last as Managing Director of M&M air sea cargo S.A. Afterwards he will continue as Chairman of the Supervisory Board. In this interview he speaks about his journey with Militzer & Münch: the challenges, the achievements, and the future. 

What was your motivation to work in the logistics industry? And what did you do before you joined Militzer & Münch in 1992?

I worked as administration director at Warsaw’s School of Economics, the biggest economic school in Poland. The political transformation in Poland in 1989 gave the Polish people many possibilities. A lot in our lives changed: both in politics and in economy. It was a huge chance for us to develop, to move on. I asked myself: `Am I ready to reposition my life?´

I think change always offers an opportunity to achieve new goals. So after getting a phone call from my colleague at the academy, who proposed starting a new company in the logistics area together, it didn’t take me long to make up my mind – and I said `yes´.

I had to learn a lot of things from scratch. Studying these new tasks was very exciting. After a few days of training in Germany, I began to hire new employees to join our organization. The first of them was Marek Ziemniewicz – a newly promoted graduate in transportation of the Warsaw School of Economics. He still works in our company as a board member and operational director.

What are your tasks as Managing Director M&M air sea cargo S.A.?

I am responsible for the company’s development and for strengthening its market position. Our management team consists of two persons, who are also members of the board: Marek Ziemniewicz supervises the operational side of the company as well as the sales of our freight services.

I manage everything else: our branch offices in Poland as well as finance and HR issues. I also represent M&M air sea cargo S.A. in Polish organizations like the Polish International Freight Forwarders Association. In this organization, for example, I was a member of the Management Board until June this year. Marek Ziemniewicz took my place in the new term.

Wojciech Łyżwiński

Managing Director M&M air sea cargo S.A.

What are the biggest challenges in your position?

We’ve come a pretty long way in our history. A successful way. We started as a small team doing customs clearances. Today, in 2018, we operate in all areas possible: air, sea, rail and road freight. My biggest challenge was to create a team of great specialists and to keep them for many years. Because the most important asset of our company are the people and their know-how.

You can compare it to a football team that plays for the cup. If the team wins, the best players often want to change club colors. I managed to keep the basic players. Many of them have been working in our company for up to 25 years. They play an important role in the growing volume of TEUs transported and in the increasing sales figures of Militzer & Münch Poland.

What were the most important milestones for Militzer & Münch Poland in the last 25 years?

We built up a customs agency first. The next steps were an air freight department and afterwards a sea freight department, and then FTL transports. We opened new offices in Wrocław, Kraków, Pruszków near Warsaw, and Rzeszów. Militzer & Münch Poland gained AEO status and is ISO certified.

In 2017 we decided to move forward, launching the very successful road division under the management of Radek Brejnak. We also created a strong sales team managed by our Sales Director Artur Wojtczak, who helped us to increase our sales by over 30 per cent.

The team of Militzer & Münch Poland.


What were the most important logistics projects that have been realized in 2018 so far? What are the main logistics projects for the second half of the year?

If you follow this and last year’s issues of `Compass´ and `Team & Motion´, our internal employee magazine, you will come to the conclusion that Militzer & Münch Poland has become a rising star in the holding. We are definitely one of the most active companies in the group. I truly appreciate it, and I am so proud of my team.

We handle a lot of interesting projects and follow the trends of the Polish market – which sometimes can be difficult due to a fierce competition between all the global players in the logistics sector that are present in Poland. But we never give up – quite the opposite.

The volume of goods exported from Poland has increased rapidly. We are part of that development by, for example, handling milk, fruit and beverage exports. On the other hand, the increase in exports necessitated some additional regulations and restrictions. We had to move on and implement some new solutions to take care of our clients’ goods: therefore we applied for Regulated Agent status. With this certification, we can guarantee the security of the supply chain for cargo that is transported on passenger aircraft.

Are there any strategic changes at M&M air sea cargo S.A. planned for this year?

After 26 years with Militzer & Münch, I am retiring at the end of this year. Until then, we will have to complete the composition of our Board. But I will stay close to the company as Chairman of the Supervisory Board. So I will keep on supporting my colleagues and especially Marek Ziemniewicz, who will take over my position. I trust in his success with all my heart.

Earlier changes like promoting some colleagues upgraded the quality of our everyday work and pushed us to another level of development and management. For example Artur Wojtczak, who is extremely active in promoting the cooperation between the Militzer & Münch offices worldwide and establishing B2B connections – he now is our new Sales Director. Our Business Development Manager Paweł Szelest acts as Head of Procurement and Tender Manager, and Beata Antolak was promoted to Financial Director. I am a lucky person to be able to attract the best people from the Polish market.

For which industries is Militzer & Münch Poland mainly active?

We are active in all areas: starting from food and beverages shipped out by air or in reefer containers to air shipments that are temperature controlled. Our team also handles complex heavy weight project cargo, for example repositioning factories or transporting huge machines abroad.

What is the potential of Poland as a logistics location?

Poland’s potential is huge: the country is centrally located in Europe and we continuously record excellent economic development. Our country is a hub for rail freight, sea shipments – with direct connections from China – and has many logistics centers used by global companies. I see the future in bright colors. Let our success story continue.

Militzer & Münch Poland

  • Founding year: 1991
  • Member of PIFFA ( Polish International Freight Forwarders Association)
  • IATA Cargo Agent
  • ISO 9001:2015 certified by Lloyd’s Register Quality Assurance
  • AEO (Authorized Economic Operator)
  • Employees: 65
  • 2 offices in Warsaw; branch offices in Wrocław, Rzeszów, Kraków, Pruszków
  • Products: air, sea, rail and road freight, customs service, project logistics
  • Among the main customers are companies from the automotive sector, from machine engineering, from the aviation, cosmetics and fashion industries, the electronics and food sectors

Towards a better understanding of the Chinese logistics market

For decades, Militzer & Münch has been operating in numerous countries along the New Silk Road, with mainly the logistics market in China posing a big challenge. For cultural reasons, decision processes follow a different pattern than in Europe. Militzer & Münch wanted to know more about these processes and commissioned the University of Applied Sciences in St. Gallen to draw up a logistics market study on the subject of the Belt and Road Initiative (BRI).

 

 

 


Dr. Thoma, what are the biggest challenges for logisticians in China? 

Logisticians from abroad have to invest a lot of time and energy to prevail in the Chinese logistics market. We have been actively operating in China since 1981, starting with a representative office. Then, in 1994, we founded M&M Militzer & Münch Tianbao Int’l Forwarding Co. Ltd. in China, and were one of the first European companies to be granted the Forwarding (A) License. Our many years of experience have taught us that decision processes at Chinese top management levels are highly complex. Therefore, it is important for us to know as much as possible about the Chinese logistics market and the processes of decision making. The results are not only intended to allow us to make progress in China; they are also meant to help us continue operating successfully along the New Silk Road.

Why is the market study not only interesting for Militzer & Münch?

Thinking outside one’s own structures and networks helps. Which is why the results of this analysis are very interesting for us as well as for other logistics companies operating on the Europe-China trade lane. We find the decision processes easier to understand, and we can better assess the logistics market along the New Silk Road.

 


It is especially the New Silk Road that gains more and more importance for international logistics projects. Who are the decision makers in these global processes? 

Over the past few years, we have already noticed a shift in decision making in the global logistics market. Today, decisions on logistics are made mainly in Europe and the USA. In the future, these decisions will increasingly be made in China, as big Chinese enterprises are more and more forcefully conquering the world market and developing their own supply chains.

What did you learn about the decision processes in China? 

Our own experience was confirmed. 80 percent of the logistics orders in China in connection with the Belt and Road Initiative are awarded to Chinese firms. There is little chance for European logistics companies in China directly – opportunities present themselves mainly in those countries where China is not or just minimally active. Nevertheless, there is the possibility for logisticians to succeed in China, provided they are familiar with the specifics of the market.

What should logisticians pay attention to concerning logistics processes in China?

There are various aspects to be considered. For one, a performance bond in the amount of ten percent of the contract sum is to be issued when the contract is awarded. Moreover, contracting entities in China check the share capital and review the business reports of the logistician.

But perhaps the most important factor for a contract to be awarded in China is trust in the logistics service supplier, trust that has grown in long years of relationships and partnerships. To this aim, logistics companies should in particular develop partnerships with Chinese State-owned Enterprises (SOEs) or with Chinese companies that are closely networked with SOEs.

What are the conclusions logisticians can draw from this result?

For logistics service providers, it is helpful to operate their own local branch office. This is essential in order to successfully build relationships. Having a local management or local partners is especially useful here. It’s the best way for a company to familiarize itself with the cultural differences and to be able to understand them.

Did the market analysis generate any other central results? 

Apart from our objective to learn more about the decision-making processes in connection with logistics projects in China, we also wanted to know what share logistics services have in the Belt and Road Initiative. And on this, we got a wealth of detailed information.

 

Central results of the Militzer & Münch logistics market study on the Belt and Road Initiative (BRI).

 

One central finding of the analysis for instance demonstrates that the Middle East is the region with the highest investments. This means that 43 percent of the BRI investments are flowing, among others, into the development of the infrastructure here. Yet large sums are not only invested in the Middle East, but in South East Asia and Russia, too. These are also the regions where the biggest number of projects is being executed – for instance for the development of transport and energy infrastructure.

All these findings confirm our strategy of increasingly operating in these regions via our own country units. That we commissioned the market study clearly pays off for us in more than one respect.

 

Cooperating with a student team

For the market study, a project team from the St. Gallen University of Applied Sciences and from Shanghai University set to work on behalf of Militzer & Münch. In charge of the analysis at Militzer & Münch is Christoph Hollenstein, Head of Group Controlling, M&M Militzer & Münch International Holding AG. Among others, the students conducted numerous personal interviews in Shanghai as well as phone interviews with decision makers from the logistics industry. The project team also collected significant data on highly promising investment regions along six BRI corridors, and the distribution of the BRI projects. The team based the market study on an alleged investment sum of 1.067 trillion USD and 420 BRI projects. 

 

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.