world - Kuehne + Nagel

world
magazine
1/2005

content 3
editorial
Ccreativity is the driving force of innovation and growth.
But there can be no creativity unless we seek and follow
new paths, the pioneering Swiss balloonist
Bertrand Piccard recently said in an impressive guest lecture at
our headquarters in Schindellegi. Piccard should know. Despite
some contrary winds, six years ago he was the first person to
make a non-stop circumnavigation of the globe in a balloon. We
should not like to deprive you of the chance to learn about his
philosophy, and you can read about it in an article in this issue.
Creativity, likewise, has always occupied an important position
at Kuehne + Nagel. For many years we have distinguished ourselves
by our innovation in all fields of logistics. Not least in the
airfreight sector: Kuehne + Nagel is the first and so far only logistics
company to be certified worldwide according to phase two of
the quality management programme Cargo 2000. This initiative
optimises the transparency of air cargo processes. Our customers
benefit from greater realiability and quality of delivery based on
interactive, IT-based procedures.
With the introduction of time-defined air cargo products we
will strengthen our position in the global air cargo business and
reach out to new horizons. You will find details of Cargo 2000
and our new product trio in the focus article of this issue.
Piccard’s aim, he said, is not so much to break records as to
open up horizons. But records are also the expression of the
force that drives a company forward. One excellent example is
shown by our report on the biggest heavy lift component ever
transported in southern Africa.
We have also taken new paths with this issue of “World
Magazine”. It appears in a new design and a different format.
I wish you an enjoyable read.
Yours
editorial Klaus Herms 02
round the world Roaring out of the garage 04
Belanak Natuna 04
Growing the network 04
Dream paintings in Schindellegi 05
On the road with a stonecrusher 05
World altitude record 05
focus Quality management has a new name 06
“What you see is what you get” 08
interview
Silke Gottschlich,
Manager Business Development
Kuehne + Nagel Shanghai
From Schindellegi to Shanghai 12
inside Strong performance 14
project transports The colossus of Richards Bay 16
industrial packing A strong box 18
people A philospher of the air and of life 20
The logistics elite meets for an
exchange of ideas 22
Opening ceremony in Salzburg 22
Scotch for Kuehne + Nagel 22
Bonjour la France 23
Schoolmates 23
IMPRINT
Klaus Herms
Chief Executive Officer
Published by Kuehne + Nagel International AG, P.O. Box 67, CH-8834 Schindellegi
phone +41 (0)44 786 95 11, fax +41 (0)44 786 95 95, e-mail: world@kuehne-nagel.com
Design/layout: Rittmann AG, CH-4002 Basel; printed at Birkhaeuser + GBC AG, CH-4153 Reinach
World Magazine (print run 30,000) is published several times a year in German and English.

News from
Kuehne +
Nagel
Belanak Natuna
Roaring out of the garage
NOSTALGIC FEELINGS. Motor sport fans get filmy eyes
and fall into raptures when they start talking about the legendary
“Kuehne + Nagel Porsche Carrera 2.7 RS”. And their enthusiasm
knows no bounds when they hear the sound of the
engine. This is precisely what they were able to do when the
famous racer, now more than 30 years old, was presented to
the public by Kuehne + Nagel in its logistics facility at Stuttgart-Gärtringen
in April 2005.
The car’s history is closely linked with Kuehne + Nagel Stuttgart
and the East African Safari
Rally. At the beginning of the seventies
the Porsche engineers wanted
to test their works cars in the East
African Safari Rally, but at that time
had only a limited budget at their
disposal. Kuehne + Nagel spontaneously
agreed to sponsor them, in
return for which the cars carried the
Kuehne + Nagel logo.
PROJECT LOGISTICS. Kuehne + Nagel’s project divisions
in Houston, Singapore and Beijing played a crucial
role in the punctual completion of one of the biggest special
ships for offshore oil and gas production in the Asian region.
285 m long and 58 m wide, the “Belanak Natuna”
operates as an FPSO (Floating Production, Storage and
Offloading) ship. It is named after its place of deployment in
the South China Sea in the Belanak area to the south of the
Natuna archipelago. The vessel has living quarters for 120 personnel and, with a storage capacity of 225,000
tonnes, serves as a floating oil refinery. Kuehne + Nagel was responsible for the delivery of all components of the
gigantic ship’s hull and process topsides from many different parts of the world. Construction of the hull began at
a shipyard in Dalian in northern China. The integration of the 25,000 tonnes of process topsides – involving several
complex operations – was carried out on Batam Island, offshore from Singapore.
Growing
the network
Dream paintings
in Schindellegi
VISIONARY ART. In April and May the
“atmospheric landscapes and skyscapes”
of the famous Dutch artist Luc
Leestemaker were on show in the Kuehne
+ Nagel company headquarters in Schindellegi.
“My paintings are a reflection of
my dreams,” the artist stated at the vernissage
in Schindellegi. The Dutchman’s
suggestively spiritual paintings are a testimony
to a visionary power, an organic
force of the kind that also
drives a company like Kuehne
+ Nagel to ever higher
peaks of achievement.
EXPANSION. Kuehne + Nagel’s network continues to
grow apace. The Group’s German organisation acquired
the IDS partner Gebr. Mönkemöller GmbH & Co,
Bielefeld, in May this year. Almost at the same time, Kuehne
+ Nagel increased its share in WM Group subsidiary and IDS partner WM Cargonet
GmbH & Co. KG, Bocholt, taking complete control of the company with retroactive effect
from January 1, 2005. With these new acquisitions, and the purchase of the Häring Service
Company and Pracht Spedition back in 2004, Kuehne + Nagel is now the largest partner in the German
IDS groupage services network, accounting for 27 per cent of all IDS shipments.
round the world 5
On the road with a stonecrusher
FROM SINGAPORE TO KUALA
LUMPUR. More than 52 tonnes
was the weight of the giant
stonecrushing machine which
Kuehne + Nagel Malaysia transported
by land from the port of Singapore
to a remote quarry roughly
50 km from the Malaysian capital.
Kuehne + Nagel was responsible for
the logistical preparations, safe
transport including accompaniment, and the handling of the customs formalities.
Kuehne + Nagel took charge of the machine, which cost roughly USD
630,000, at the terminal of the Port of Singapore Authority where it was
loaded for overland transport onto a Goldhofer multi-axled trailer.
From there the way to the quarry followed a long, bumpy and
poorly maintained gravel road.
Problems arose shortly just before the final destination. The
last hundred metres were too steep for the multi-axled
trailer to negotiate. The stonecrusher therefore had to be
unloaded from the trailer over a temporary ramp built
from sand. The imposing caterpillar vehicle travelled
the last few metres to its final destination under its
own power.
World altitude record
ON THE VOLCANO. At the end of January, as part
of a seismological expedition, a VW Touareg reached
an altitude of 6,081 m (19,950 ft), the highest ever attained
by a production car, and thus assured itself of a place
in the Guinness Book of Records. As sponsor of the logistics
and transport costs and services of the expedition
headed by Rainer Zietlow, Kuehne + Nagel also played a part in
this achievement. On
29 January 2005, on the
steep slopes of Ojos de Salado
on the border between Argentina
and Chile, the team driving the
unmodified SUV had to contend with icy winds
and a lack of oxygen that tested them to the limit.
Ojos del Salado is the highest volcano in the world and belongs to a volcanic
mountain group in the Atacama desert in northern Chile, a zone
which is subject to frequent earthquakes and volcanic eruptions. The purpose
of the expedition was to install a 40 kg seismographic station at the
summit of the volcano.

focus 7
Quality management has a new name
Cargo 2000 has opened a new chapter in the history of airfreight.
What is
Cargo 2000?
Cargo 2000 is an IATA interest
group which brings together some 30
major airlines, freight forwarders and
ground handling agents with the uni-
Despite growing turnovers in the
sector, airfreight forwarding is
under pressure. Only solutions
authorities were an unpredictable factor
in every transport operation.
But the needs of trade and industry
lity standards for airfreight transport and
laying down standardised operational procedures
with checkpoints. Transparency
In phase one, 4,000 routes between 65
cities have now been certified, compared
with only 400 a year ago. The number of
able to plan and monitor door-to-door
airfreight shipments on an automated basis
according to C2K criteria.
que goal of implementing a new quality
management system with uniform
standards for the worldwide air cargo
with a customer-oriented approach can
have changed. Just-in-time and minimal
was enhanced by reducing the number of
Master Air Waybills made out in accor-
The following article shows how the
industry. The biggest concerted quali-
secure the future of the business. And
inventories are now the order of the day.
process steps from 40 to 19. This is the
dance with Cargo 2000 now stands at
company is meeting this challenge in a
ty campaign in the history of airfreight
customers demand reliability and trans-
Complex multinational procurement and
core of the Cargo 2000 (C2K) programme.
60,000 per month. This corresponds to
highly innovative manner and is also tur-
has so far given birth to C2K phases
parency.
distribution systems demand a high de-
250,000 house waybills. By the end of this
ning it into a product offensive in order to
one and two: post shipment audit of
For many years the desire for freedom
gree of precision, plannability, punctuali-
Three introductory phases
year, all airfreight shipments in Amster-
offer its customers solutions tailored to
the airport-to-airport movement and
and lust for adventure was a driving force
ty and reliability, from ordering and pro-
Three introductory phases are planned.
dam, Chicago, Frankfurt, Hong Kong,
their future needs.
interactive monitoring of the door-to-
for all who were involved in aviation. Im-
duction right through to the end consu-
The first provides for post shipment audit
London, Milan, Paris, Seoul, Singapore,
door movement. Phase three, real-
provisation and creativity were in de-
mer. Creativity is all well and good, but
of the airport-to-airport movement, the se-
Tokyo, Toronto and Vienna will be pro-
time transport management of the
mand. In the air cargo business they play-
when the product is delivered its quality
cond for interactive planning and monito-
cessed in accordance with Cargo 2000
transportation channel at individual
ed an important role and were not consi-
must be as ordered.
ring of the door-to-door movement, while
guidelines.
piece level from door to door, is cur-
dered out of place. Every flight was diffe-
Forwarders, airlines and handling
the third provides for real-time manage-
Kuehne + Nagel is the only logistics
rently in the development stage.
rent. No airport functioned in the same
agents therefore got together some years
ment of the door-to-door transportation at
provider to be certified worldwide in ac-
way as another. The customs and other
ago with the aim of defining uniform qua-
an individual piece level.
cordance with phase two. That means it is

focus 9
“What you see is
what you get”
Kuehne + Nagel's airfreight division will introduce a product trio with differential
transit times at all-inclusive rates. Based on the Cargo 2000 quality management
programme, it will make door-to-door air transport more reliable.
Marcel Fujike, whose job in any
case makes him a frequent
flier, is now jetting round the
fore be made familiar with KN Express,
KN Expert and KN Extend.
At customer and staff workshops held
go 2000 (known internally as C2K). The
globally standardised C2K programme is
integrated into Kuehne + Nagel's IT plat-
world more often than ever. The task that
in all parts of the world, Fujike and his
form and ensures dependable and measur-
is demanding so much extra commit-
team give systematic instruction on all fa-
able airfreight processes. Its core function
ment from the airfreight division's pro-
cets of the air cargo portfolio, including
is the automatic generation of consign-
duct developer is the preparatory work
the latest additions. A key feature of the
ment-specific route maps from shipper to
for the introduction of three door-to-
workshops is that they also give customers
consignee with clearly defined check-
door products in a completely new form.
the opportunity to make suggestions for
points, continuous transport monitoring
They are to be marketed under the na-
improvements, to exercise constructive
and comparison, accurate to the minute,
mes KN Express, KN Expert and KN Ex-
criticism and to submit ideas for solutions.
between “planned” and “actual” journey
tend. They differ in the length of their
After practical testing on the first seven
times at every checkpoint.
transit times: one to three days for KN
routes, in the autumn eight stations are to
All parties to the transport process are
Express, three to five for KN Expert and
be interlinked. By multiplication, the test
integrated into the data flow throughout
more than five days for KN Extend. A
will thus be extended to 56 routes. Kueh-
the life of the shipment. Any deviation
new feature is the transparent price basis.
ne + Nagel's airfreight network comprises
from the defined transport plan triggers
Fujike defines the principle with this sim-
more than 300 bases. When, after the
an automatic warning. This enables those
ple formula: “What you see is what you
completion of the rollout, all of them are
concerned to take prompt corrective mea-
get.” Irrespective of what product the cu-
linked up, the new products will be availa-
sures.
stomer wants to ship.
ble throughout the world.
Implementation of the C2K project is
Starting in July, the new product fami-
divided into three implementation pha-
ly will be tested on seven international
Transparency is trumps
ses: post shipment audit of the airport-to-
routes. The first phase will involve the
Today, trade and industry demand very
airport movement, interactive monitoring
Kuehne + Nagel stations in the three re-
high standards from logistics providers.
of the door-to-door movement at a house
BREAKING THE ICE. Based on Cargo 2000 Kuehne + Nagel guarantees the
gions of North America (Atlanta, Chica-
They expect total visibility of the trans-
waybill level, and real-time management
interactive planning and control of the entire door-to-door logistics chain.
go), the Far East (Tokyo) and Europe
port chain. Kuehne + Nagel offers such
of the transportation channel at individu-
(Amsterdam, Paris, London, Nuremberg,
supply chain transparency from source to
al piece level. The first phase was already
Stuttgart). Before the launch of the test,
destination, based on modern IT tools
implemented by Kuehne + Nagel some
all these stations’ employees must there-
and the quality management system Car-
time ago. Phase two has so far been intro-

focus 11
SEAMLESS PROCESS CHAIN. The standardised C2K programme which is integrated in Kuehne + Nagel’s IT system...
...ensures reliable, measurable and transparent airfreight processes, from the shipper through to the consignee.
duced only by Kuehne + Nagel. Phase
logistics chain is being raised ever higher.
der. For 43 per cent, reliability ranks high-
three is still in preparation.
Only by rational procedures that maximi-
est. This is followed by the transport price
In order to implement phase two,
se their efficiency can customers stand up
(27 per cent) and the transit time (19 per
Kuehne + Nagel had to make both inter-
to the harsh winds of competition.
cent). Customer service, network density
nal and external changes. According to
The customer passes on the pressure to
and technical and administrative conside-
Fujike, the forwarder now generates a
his airfreight forwarder. His service must
rations play a relatively minor role with
route map for every consignment – more
than 100,000 route maps per month, and
offer first-class value all round, or in other
words it must be reliable, economically
six, four and one per cent. With the new
product series KN Express, KN Expert
Cargo 2000 in Practice
this figure is rising rapidly. On the basis of
priced, fast and transparent.
and KN Extend, Kuehne + Nagel is res-
multiple shipments per route, each week
ponding to the result of this study. The
the company handles an average of 2,000
The key to success
customer is given a clear undertaking on
COMPUTER TOMOGRAPH. Kuehne + Nagel receives a
VACCINES. Kuehne + Nagel receives an order from the
consolidated direct consignments to
The key to success has a name: visibili-
the matter of service. Shipping becomes
transport order from the German high-tech manufacturer
Swedish vaccine producer SBL to transport cholera vaccines
150 destinations. Their volume adds up to
ty. “Who needs visibility in logistics,” Fu-
plannable for him in terms of time and
Siemens in Erlangen (24 February 2005, 16:00). A computer
to a pharmaceutical company in Canada at a temperature of
27,500 individual consignments weighing
jike asks provokingly, and immediately
costs. With the new products, Kuehne +
tomograph has to be shipped to Groves in the US state of
+2 to +8°C. The carrier is KLM Cargo. The goods are packed
11,500 t. This corresponds to the capacity
comes up with the answer: “Everyone!”
Nagel is again confirming its position as a
Texas. KLM is the carrier, one of the prime movers in the
in an Envirotainer dry-ice container and shipped from Stock-
of 110 Boeing 747 jumbo freighters per
His arguments stand to reason: What
leader of innovation in a highly competi-
Cargo 2000 initiative. After Kuehne + Nagel has drawn up the
holm (Sweden) via Amsterdam to Toronto (Canada), from
week.
we cannot see we cannot measure; what
tive market.
route map with the airline in accordance with C2K standards,
where they are delivered to the end customer. The special
Globalisation has given rise to com-
we cannot measure we cannot check: what
the various legs of the journey and the accompanying docu-
feature of this shipment: For the first time, on the basis of C2K
plex, internationally meshed procure-
we cannot check swallows up money.
mentation begin to fit seamlessly together.
standards, the temperatures inside the airfreight container are
ment, production and distribution net-
And, of course, nobody knows how much.
All stages of the logistics chain, from the preparation of the
seamlessly recorded and are fed into the Kuehne + Nagel IT
works. Largely due to shrinking product
But we do know what criteria the custo-
tomograph for transport and its collection from Siemens
system at the various transit checkpoints and made visible in
life cycles, the bar for the supporting
mer applies when placing an airfreight or-
(2 March, 10:00) to its delivery at the Renaissance Hospital in
real time for all who are involved in the process.
Groves (7 March, 11:07) and its assembly by Siemens en-
In the event of a temperature deviation it would have been
gineers, are meticulously monitored and compared with the
possible to take corrective measures at the control point.
CHECKPOINT. The new C2K stan-
“planned” status after each leg of the journey. To sum up, the
“This is a big advance, for temperature variations formerly be-
dards make the on-line tracking of
computer tomograph started its journey five hours earlier than
came apparent only at the end of the journey when the contai-
temperature fluctuations inside
planned (13:00) and arrived at its final destination 53 minutes
ner was opened and data read,” said Marcel Fujike.
the airfreight container possible.
before the scheduled time despite a setback due to the
“Customers want their freight to be transported under ideal
weather (take-off from Amsterdam airport delayed by one
conditions throughout the transport chain. This particularly
day). The result: a satisfied customer.
applies to the pharmaceutical and healthcare sector. By analysing
logged temperature data at several checkpoints, we
can now ensure a high degree of transparency so that customers
can always be certain their freight is ‘in good health’.”

Silke Gottschlich,
Manager Business Development
Kuehne + Nagel Shanghai
interview 13
From
Schindellegi
to
Shanghai
Living and working in Shanghai.
Silke Gottschlich, who
has been responsible for the
development of the contract logistics
business at the Kuehne +
Nagel subsidiary in Shanghai since
January of this year, describes
her first experiences and impressions
in Asia's glittering
metropolis.
Ms Gottschlich, what induced you to move
from Schindellegi to Shanghai?
First and foremost the new professional
and personal challenge. After more than
three years in the corporate development
department in Schindellegi, I wanted to
move to the operational side of business in
a national company. Apart from the exciting
professional prospects, I was attracted
by the whole idea of Shanghai and the
pulsating life of a big city. My present job
is the development of contract logistics, or
in other words the development of our
warehousing and distribution activities in
China. The experience I gathered during
my time in Schindellegi is a great help, but
I also have to deal with many new technical
and, above all, specifically regional
and cultural aspects.
Could you describe some of your impressions
after your first few months in the
city?
In the past ten years Shanghai has probably
developed faster than any other city in
the world, also in the architectural sense.
On the one hand there are ultra-modern
skyscrapers, and on the other hand it still
has a Chinese flair with narrow streets
and alleys, Chinese markets, hot food stalls
etc. It has an enormously rich cultural life,
and when it comes to culinary diversity
Shanghai leaves no wish unfulfilled. I personally
hope that the city will not completely
lose its original character.
Do you travel much?
Yes. After a short introductory phase in
Shanghai I have done a great deal of travelling.
Up till now mainly in northern
China, in Beijing and Tianjin. I also look
after projects of our branches in Dalian
and Qingdao – both of them very beautiful
but still little-known cities of more
than a million people. I have also made a
number of private weekend trips and have
plans for more – the terra cotta army in
Xi'an is high on my priority list.
Silke Gottschlich
• Graduation 1997 from Schloss Salem
boarding school, Germany
• Study of business administration and
corporate management at the Graduate
School of Management (WHU) in Vallendar
near Koblenz, with semesters spent abroad
at HEC Montreal and the Copenhagen
Business School
• Degree in business studies and start at
the company headquarters of Kuehne +
Nagel in Schindellegi in the corporate development
division in December 2001
• Move to Kuehne + Nagel Shanghai in January
2005, with responsibility for Contract
Logistics Business Development in China
How do you get on in your daily work with
customers and staff?
I greatly enjoy working with our contract
logistics team, most of whom are Chinese,
and the Kuehne + Nagel people in other
branches. Since all my colleagues speak
good English, we have few communication
problems internally. Things are somewhat
more difficult when I have to deal with customers,
some of whom speak little English
or none at all. Then I have to rely on the
interpreting skills of my colleagues. That's
one of the main reasons why I am taking
two to three Chinese lessons per week.
What do you want to achieve during your
time in the Far East?
I can well imagine spending a few more
years in Asia. Above all I would like
to gain further professional expertise.
Compared with the European and
American standard, the Chinese logistics
market is still in its infancy. But the
potential for growth is enormous. As a
result of its strong position in sea- and
airfreight, Kuehne + Nagel is excellently
positioned to successfully develop this
field of business in China in the coming
years, and I should like to play a part in
shaping it.
And what do you miss most of all?
Above all, being close to nature. In Shanghai
there is hardly any possibility of taking
outdoor exercise. It is not like Switzerland,
where you can simply take a trip
into the country or the mountains when
you feel like it.

VOTE. The shareholders present
approved all proposals by a clear
majority.
inside 15
ess fields and emphasised that on a turnover/earnings
ratio, Kuehne + Nagel
leads the market.
Klaus-Michael Kuehne also commented
on the increased free float, which led
to a favourable stimulation of trade with
Kuehne + Nagel shares and also supported
last year’s above average share price
development.
Strong performance
Kuehne + Nagel International AG shares perform
well. The course for further growth is set.
At the Annual General Meeting of
Kuehne + Nagel International
AG, held on May 2 this year at
the company’s headquarters in Schindellegi/Switzerland,
75 per cent of voting
shares were represented. The shareholders
approved all proposals by a clear majority.
In his address, Klaus-Michael Kuehne,
Executive Chairman of the Board of Directors,
expressed his pleasure at the excellent
development in turnover and earnings
the Group achieved in the business
year 2004, and acknowledged the performance
and commitment of the
Management Board and employees
worldwide.
He then discribed the global competitive
positions of the Group’s core busin-
Good start to the business year 2005
With a 17 per cent increase in turnover to CHF 3,027.3 million
and the operational result (EBITA) up 18.4 per cent to
CHF 97.9 million, Kuehne + Nagel, the globally operating logistics
group, has made a successful start to the business year 2005.
Net earnings rose 45.7 per cent versus last year to CHF 69.5 million.
Due to the adoption of the accounting principles IFRS 3,
CHF 12.8 million higher net earnings were reported.
Continuous optimisation
Klaus Herms, Chief Executive Officer,
illustrated the performance and strategic
objectives of the respective business
units. In the future, too, the continual
optimisation of products and services
as well as the customer-oriented business
policy will set the course for further
growth in turnover and earnings.
The shareholders approved the
Annual Report, the Financial Statements,
the Consolidated Financial Statements
for 2004, and the increased dividend
of CHF 4.50 (previous year
CHF 3.50). The dividend (40 per cent of
the consolidated net income) was paid
out on May 6, 2005.
The Annual General Meeting granted
discharge to the members of the Board of
Directors and Management Board for the
business year 2004.
The business unit Sea & Air Logistics continued its dynamic
growth in the first three months of the year. Transport volumes in
sea and airfreight increased twice as much as the market
average. Capacity utilisation in Rail and Road Logistics remained
good, leading to a 29 per cent increase in gross profit in that
area. Contract Logistics reported an increase in margius and
thus a 6.1 per cent growth in gross profit.
Messrs Bruno Salzmann and Bernd
Wrede stood for re-election to the supervisory
board and were each confirmed for
a further three years. Mr Hans Lerch was
newly elected to the Board of Directors
for a three-year term. Hans Lerch was President
of the Executive Board and Chief
Executive Officer of Kuoni Travel Holding
Ltd., and is now a member of its
Board of Directors.
The Annual General Meeting also
agreed to the Board of Directors’ proposal
to create conditional capital of up to a
maximum of CHF 12 million. This
measure provides Kuehne + Nagel with
the necessary flexibility to finance strategic
investments.
The next Annual General Meeting
will be held on May 2, 2006.
Financial statements
2004 2003
Turnover 11,563.1 9,548.0 +21.1%
Gross profit 2,322.5 2,064.3 +11.4%
EBITA 390.2 315.9 +23.5%
Net earnings 240.8 195.7 +22.7%
Staff 21,193 19,004 +11.5%

A CANDIDATE FOR THE GUINNESS BOOK
OF RECORDS. The 480-tonne heavy lift
component with a length of 64 metres and
a diameter of 9 metres in the port of
Richards Bay.
project transports 17
The colossus of
Richards Bay
The South African port was the pivotal point for the
transport of the biggest heavy lift item ever shipped to
Africa. The operation was managed by Kuehne + Nagel.
Like a giant millipede or an enormous
reptile from the age of the
dinosaurs, the 480-tonne splitter
supervision of marine surveyors the two
giant components, lashed onto steel
stools, were transferred to two barges and
Throughout their journey the vehicles
were accompanied by employees of the
local telephone and electricity authori-
planning, the consolidation of the material
and plant components from all over
the world and their delivery to a total of
two gigantic splitters for the new refinery
in Secunda from their place of construction
in India. The preparations for this
with a length of 64 metres and a diameter
subsequently transported by water to the
ties, who had to temporarily lift the tele-
six industrial sites in Secunda and Sasol-
part of the job began in March of last
of 9 metres crept at a snail's pace on mul-
port of Mumbai, where the units were
phone and power lines that crossed the
burg, is in the hands of the Project Divi-
year with weekly meetings with the main
ti-axle special trailers from the South
hoisted by the vessel's own two derricks
roads. Civil engineering specialists had
sion of Kuehne + Nagel Johannesburg.
parties, namely the project owner Sasol
African port of Richards Bay to the indus-
onto a special ship belonging to Jumbo
reinforced the bridges on the route, but
and the principal engineering contractors
trial site at Secunda in the province of
Shipping which was chartered for the pur-
these had to be checked by inspectors
International teamwork
Fluor Daniel, Sunninghill (South Africa)
Mpumalanga.
pose by Kuehne + Nagel. The voyage
before every crossing. The rearguard of
Together with a team of project specia-
and Kellogg Brown & Root from
A second splitter unit, albeit only half
across the Indian Ocean to Richards Bay
the cavalcade was formed by an ambu-
lists from the Kuehne + Nagel offices in
Houston Texas (USA).
as big and heavy, followed immediately
took 13 days.
JUMBO SHIPPING. The enormous
lance, a tanker truck with water to cool
Hamburg, Houston, Paris and Tokyo,
Another major challenge was to orga-
behind it. Hundreds of spectators lined
splitter occupied the whole length
the road surface, and supply vehicles with
Kuehne + Nagel Johannesburg is respon-
nise the charter of two ships in Antwerp.
the roads along the 560 km transport
A breathtaking sight
of the special ship's deck.
thousands of litres of diesel fuel, tyres
sible for ensuring the timely arrival in
In that port they were respectively loaded
route. Leaflets were distributed and ann-
The imposing cargo could already be
and spare parts. After 19 days, 50 punctu-
South Africa of all the plant material
with 11,500 and 9,500 tonnes of freight
ouncements were made by radio and tele-
seen from Richards Bay when it was still
red tyres and two repairs to the tractor
from the various suppliers in Europe, In-
consisting mainly of very heavy and
vision to alert the public of this move-
far out at sea. The larger splitter weig-
pied by the preparations for land trans-
units, the two splitter units finally rea-
dia, the USA and the Far East, totalling
bulky items from all over Europe (name-
ment and the associated hindrances to
hing 480 tonnes occupied the whole
port, i.e. the transfer of the reactors to
ched their destination in Secunda.
56,000 tonnes. Customs clearance and
ly from Belgium, France, Germany, the
traffic. One of the world's most modern
length of the ship's deck, a breathtaking
multi-axle trailer combinations in the
The colossus was transported for the
overland transport to the construction
Netzerlands, Spain and Switzerland),
refineries is now under construction at
sight even for old hands in the heavy-lift
port.
South African energy and chemical
sites at Secunda and Sasolburg are arran-
which resulted in enormous savings for
Secunda.
business when the vessel with the
At a speed of 5 km per hour the impo-
concern Sasol, which is building new
ged by the Kuehne + Nagel affiliate KN
the customer.
The transport of the two splitter units
gigantic cargo docked in the port of
sing convoy then set off for Secunda, es-
refinery facilities and expanding existing
Tsepisa Logistics, based in Johannesburg.
from their builder to the pier at Hazira
Richards Bay.
corted by the police. It covered a maxi-
capacity at its Sasolburg and Secunda
The biggest challenge presented by
(Surat), already presented the specialists
480 tonnes is the weight of roughly a
mum distance of 56 km per day, and as
production plants. The overall logistic
this project, which is scheduled for com-
with a major challenge. Here, under the
hundred elephants. Two days were occu-
little as 30 km on steep stretches.
management of this giant project, i.e.
pletion this year, was the transport of the

industrial packing 19
Packing independent of location
The wholly-owned Kuehne + Nagel subsidiary Cargopack has specialised
in a worldwide packing service for industrial goods which is independent
of location. General manager Friedrich Stuwe explains the concept.
What does the term “independent of location” mean for the packing
services of Cargopack?
For Cargopack, independence of location is the ability to offer an identical
A strong box
Good packaging is half the battle.
standard of packing services and transport safety irrespective of in what
country and under what conditions a package begins its journey.
What induced you to place independence of location at the centre of your
service policy?
As a member of the Kuehne + Nagel Group, Cargopack has always been
an integral part of a logistic network in which one must demonstrate one's
own capabilities on an international level. For that reason the require-
Time is money – this is particularly
true when complex production
plants have to start operating by a
the packing specialist Cargopack, Kuehne
+ Nagel’s airfreight departement in
Frankfurt am Main, and Kuehne + Nagel
Already in the planning phase it became
clear that the loading of the 12-
tonne main machine of the CNC machi-
SCREWED TIGHT. To withstand the
stresses imposed by the Antonov’s
crane, the transport crate was rein-
ments Cargopack has to meet are already clearly defined by our customers:
Cargopack is the packing specialist in a globally operating group that covers
the whole range of logistic needs. It is therefore only logical to invest
specific date and all components have to
USA for overland transport from Was-
ning centre would be the crucial part of
forced with steel girders.
in network structures, or in other words in making us independent of our
be punctually assembled on the spot. In
hington DC.
the project and would a present a special
own locations.
such cases the packing of the goods can
challenge to the packing company Car-
be a decisive factor, as shown by a recent
No time to lose
gopack. The special configuration of the
In this case the integration of the
So Cargopack is integrated into a global network of packing companies?
example in which Kuehne + Nagel suc-
The first logistic challenge was a precise
crane called for the construction of a
packing into the logistic concept proved
Cargopack is a member of an international network of leading export
cessfully shipped a computer-controlled
planning of all operations. Since only a
transport crate that could withstand ex-
to be the most important factor for a
packers. These have defined a common industry standard for the quality of
(CNC) machining centre by air to the
very narrow time window could be assign-
tremely high bending forces because the
problem-free transport operation. For
packing services, and maintain a close cooperation with each other.
USA. Here a crucial role was played by
ed to each phase, every stage of the opera-
Antonov's crane could lift its load only
only this allowed the use of the
the packing specialist Cargopack.
tion had to run absolutely smoothly. And
at its outermost ends.
Antonov’s crane without which the main
What does that mean for your customers?
The parts of the machine had to be
to allow perfect coordination between the
machine could not have been loaded
We can offer our customers the same quality of service as they are accusto-
transported within 96 hours from the fac-
operations of the individual parties, meti-
Reinforcing the floor
into the aircraft.
med to receive from us in Germany, Europe, and, with the aid of our part-
tory gate of the German manufacturer,
culous preparation was essential.
Cargopack, a subsidiary of Kuehne +
With all the necessary components
ners, also in the principal exporting countries such as China. For our custo-
Schwäbische Werkzeugmaschinen
For air transport to the USA, Kuehne +
Nagel specialising in the transport
being delivered and assembled on schedu-
mers we can thus be a competent partner and provide dependable support on
GmbH, to the customer’s production
Nagel chartered an Antonov 124, one of
packing of industrial goods, solved
le, production could also begin as quickly
questions of industrial packing.
plant in the United States.
the world’s biggest airplanes with a carry-
the problem by reinforcing the floor
as planned.
Several parties were involved in the
ing capacity of 120 tonnes. The hold of this
of the crate in such a way that it could
project: the manufacturer’s own shipping
aircraft is equipped with a crane capable of
withstand the increased strain of
department for transport to the airport,
handling items weighing up to 20 tonnes.
lifting.

A philosopher
of the air and of life
people 21
Thinking at the right height. The Swiss balloonist Bertrand Piccard promoted
his latest project at Kuehne + Nagel.
His father dived to hitherto unprecedented
ocean depths:
11,000 metres (37,800 ft) below
made parachute jumps, danced in the sky.
Piccard, the businessman, set up a flying
school in the Canary Islands and went
He recalls the Chinese overflying regulations.
They forced him to make a detour,
but this carried him into a favoura-
the surface of the Pacific into the Maria-
bankrupt after three years.
ble wind. “The greatest gifts in life are of-
na Trench. His grandfather’s achieve-
Doctor Piccard completed his studies.
ten poorly packed.” Was he not proud to
ment was in an upward direction: in 1931
“Curiosity, perseverance and respect” are
be the first balloonist to fly round the
he was the first person to reach the stra-
the virtues he deems worthy of life. He
world? “It is always good to be first,” Pic-
tosphere. And Bertrand Piccard? “I had
wants to communicate this to the mana-
card replied. “Otherwise I would not be
to choose the horizontal,” said this scion
gers at Kuehne + Nagel , the economics
here but in my consulting room in Lau-
of the adventurous French Swiss family.
students in St. Gallen, and politicians at
sanne where I might be staring at a photo
Six years ago, he and his companion
the World Economic Forum in Davos.
of the journey which I have on my desk.”
Brian Jones made a sensational journey:
After 47,755 kilometres they landed in
Getting rid of ballast
Forging ahead with new projects
the Egyptian desert, having made a com-
He tells them that what counts is not
Wherever Piccard the entertainer puts
plete nonstop circuit of the world.
AROUND THE WORLD. Bertrand
the setting of records, for they will eventu-
on his show, he leaves behind an en-
The capsule bearing the name of their
Piccard completed the first non-
ally be broken, but the enduring experien-
raptured audience. They enjoy hearing the
patient sponsor, Breitling Orbiter III, has
stop circumnavigation of the globe
ce that is gained from them. In order to
man who describes his way through the
since stood in the Washington Space Mu-
in a balloon in 1999.
change height one must dump ballast. Pic-
clouds as if by blind flying he had blazed a
seum just round the corner from Lind-
card the psychologist: “We have to get rid
trail through life. They forgive him when,
bergh’s aircraft.
tion, we have to start thinking at a diffe-
of things that we have fundamentally lear-
after slightly less than an hour, he digs in
Piccard’s fame now feeds on his philo-
rent height,” says the Piccard the psy-
ned it is better to keep. So long as we do
his box of memories and projects the most
sophy for managers which he has derived
chiatrist.
not leave the safety zone, there can be no
spectacular pictures of his journey on the
from the art of ballooning.
He did not become a physicist or an en-
creativity.”
wall accompanied by John Lennon’s im-
A wiry figure, he stands before the management
team of the Swiss logistics
gineer. He did not want simply to follow
in his father’s and grandfather’s footsteps,
Piccard recalls his moments of fear: For
instance, when he and his companion de-
mortal song “Imagine”.
They are fascinated when they hear
Bertrand Piccard
company Kuehne + Nagel, whom he has
however straightforward that would have
cided to tackle the flight across the Atlan-
about his next plan. He is working on a
Born in Lausanne (Switzerland) on 1 March 1958. His father established a deep-
been invited to address. A small man,
been. He spent the night before the start of
tic, the last quarter of their journey, al-
motorised glider fitted with solar collec-
diving record, while his grandfather made a balloon flight into the stratosphere.
with short hair and a high forehead. Pe-
the moon capsule Apollo Eleven in the ho-
though they had only an eighth of their
tors. The power they generate drives a
He studies medicine and becomes a psychiatrist.
netrating but not unfriendly eyes. No-
tel room of Wernher von Braun, the geni-
gas supply left. “You have to accept fear.
motor which always keeps the aircraft
thing about his clothing suggests the ad-
us who also designed the rocket that laun-
Then it disappears.”
above the clouds. Almost a perpetuum
In 1985 he gives the first public display of his passion for flying by becoming
venturer. His dark suit is meticulously
ched the men on their way to the moon.
He remembers the meteorologists in
mobile whose endurance is limited only
European champion in paraglider aerobatics.
pressed. His aim is not to break records,
the ground station. Piccard wanted to use
by that of the pilot. Piccard will find
but to open horizons, says Piccard, the
Seeking the meaning of life
the fastest wind. By radio, the weather
sponsors for this too, some perhaps this
In 1992 he wins the first transatlantic balloon race.
pioneer.
Back in his home town of Lausanne on
men advised him against it: “Do you want
very evening. After all, even managers
And then comes his interpretation of
Lake Geneva, the boy turned over questi-
to go fast in the wrong direction or drift
have dreams.
Oliver Stock
In 1999, together with his British co-pilot Brian Jones, he is the first person to
ballooning: drifting with the wind and
ons in his mind: What do we live for?
slowly in the right one?” they asked. “We
circle the earth nonstop in a balloon. Since then he has been touring the world as
nevertheless reaching your objective.
What is the point of setting records?
need more meteorologists in schools, in
a travelling lecturer, working on a new project and collecting money for his foun-
That is what is unique about it. “If the
Piccard studied the interaction of body,
politics, in business,” is the lesson Piccard
dation "Winds of Hope" in aid of sick children in the third world.
winds of life blow in the wrong direc-
mind and soul. He flew delta gliders,
has learned from this situation.
(Source: HANDELSBLATT, 9.5.2005 )

The logistics elite meets for an
exchange of ideas
KEEN MINDS MEET. Under the patronage of the Kuehne Foundation, wellknown
German professors from various universities that are supported by or
closely associated with the Foundation regularly meet for an exchange of views
and ideas on research themes and projects. The last such meeting took place
in February 2005 at the Kuehne + Nagel headquarters in Schindellegi.
Scotch for
Kuehne+Nagel
Kuehne + Nagel has recently
expanded its activities in the
wine & spirits niche market
Peter Ulber,
CEO of
Kuehne + Nagel
Ltd, UK.
Do you
know...?
people 23
in corporate development at Kuehne +
Nagel’s Swiss headquarters. Heading
the department the latter
four years, he significantly
contributed
in Scotland. After the successful
to the evaluation
integration of Seabrook & Smith,
and comple-
the well-known British provider of
tion of strate-
logistics services for wine, beer and
gic acquisi-
spirits importers, Kuehne + Nagel UK
tions for the
took over Wm. Martin & Co. (Marine)
Ltd., a forwarding company headquartered
in Glasgow, in February this
year. The Scottish company, which
port. But yes, once in a while I do drink a glass
myself.
Bonjour
la France
globally operating
logistics
group.
As Managing
generates a turnover of more than
The French organisation of
Director, Tobias
CHF 40 million per year, owes its suc-
Did you toast to the takeover of Wm. Martin & Co
Kuehne + Nagel has been un-
Jerschke will apply him-
Meeting of professors in Schindellegi. From left to right: Prof. Wolfgang Stölzle (Kuehne
Institute of Logistics at the University of St. Gallen), Prof. Helmut Baumgarten (emeritus,
TU Berlin), Prof. Peer Witten (Honorary Professor at the University of Magdeburg), Klaus-
Michael Kuehne (Chairman of the Board of Governors of the Kuehne Foundation), Prof.
Jürgen Weber (Kuehne Center for Logistics Management at the WHU School of Management in
Vallendar), Prof. Frank Straube (TU Berlin), Prof. Wolfgang Kersten (Hamburg School
of Logistics at the Technical University of Hamburg-Harburg), Martin Willhaus (General Manager,
Kuehne Foundation).
cess particularly to its special knowledge
of the whisky industry.
World Magazine talked to Peter Ulber,
CEO of Kuehne + Nagel Ltd, UK.
Mr. Ulber, do you enjoy a glass of whisky
with a glass of whisky?
We enjoyed a toast during the staff gathering,
which took place immediately after the completion
of the acquisition. The gathering was attended
by all Glasgow staff, both present
Kuehne + Nagel and former Wm. Martin
employees, and was an excellent opportunity
der new leadership since April 2005.
32-year-old TOBIAS JERSCHKE has
been named new managing director. He
succeeds Jean-Pierre Ennebick, who
henceforth will preside over the Board of
Directors of Kuehne + Nagel (France) S.A.
After international studies in economics,
self to the ongoing expansion
of the French national company with a
particular focus on contract logistics
operations. This business unit is being
developed groupwide alongside
seafreight and airfreight activities.
Kuehne + Nagel employs around
now and then?
for everyone to get to know one another.
in 1998 Tobias Jerschke began his career
550 staff at 20 locations in France.
The biggest enjoyment I get from whisky is
Opening ceremony in Salzburg
INAUGURATION. Kuehne + Nagel Aus-
Klaus-Michael Kuehne said during the
seeing it in barrels being loaded into a
Kuehne + Nagel container ready for trans-
What did you especially like about Wm. Martin,
that made you want to buy the company?
We had talked to Wm. Martin about the possi-
Schoolmates
tria has doubled its warehousing capacity
inauguration ceremony, “Salzburg is of
bility of a close cooperation for a long time. Its
They went to the same school in Ham-
to 13,000 sqm and increased the number
major strategic importance both for the
60 year history in Scotland and profound know-
burg, the poet and song-writer WOLF
of pallet slots to 14,000 in Salzburg/Berg-
strong local economy and as a logistics
how, regarding the wine and spirits industry in
BIERMANN and KLAUS-MICHAEL
heim. In the presence of many customers
hub. In view of our plans to expand acti-
particular, combined with Kuehne + Nagel’s
KUEHNE, Executive Chairman and
and business partners, Gabriele Burgstaller,
vities in Austria and across central
worldwide reach made this acquisition a perfect
President of the Board of Directors of
Governor of the Province of Salzburg and
Europe, the Salzburg branch plays an
choice for our strategy for continued growth.
Kuehne + Nagel. At the end of Fe-
Klaus-Michael Kuehne, Executive Chairman
integral part.”
bruary this year, Wolf Biermann, who
of the Board of Directors of Kuehne + Nagel
In the picture (from left to right): Christine
What made the takeover a pleasure?
was giving a guest performance at the
International AG, opened the extended
and Klaus-Michael Kuehne; Josef Mitter-
It was similar to the takeover of Seabrook &
Theater am Hechtplatz in Zurich, visited
logistics centre in March this year.
meier, Director Kuehne + Nagel Salzburg;
Smith during 2003 in that, thanks to the strong
his old school friend at the company's
Governor Gabriele Burg-
commitment on both sides of the negotiating
headquarters in Schindellegi.
staller; and Friedrich
HANDSHAKE. Gary Black (Kuehne +
table, once the basic agreement had been made
Although their chosen career paths could
tually expelled from the GDR but then be-
Macher, General
Nagel UK) welcomes Joe Hanlon
the whole process from beginning to end took
not be any more different, they have one
came a respected and much honoured
Manager Central
(Wm. Martin).
under eight weeks to complete. It is also a plea-
thing in common: the determination with
German artist and performer. And, on the
Europe, Kuehne +
sure to see how well the existing and new staff
which they pursue their respective aims in
other hand, the captain of industry, who
Nagel.
AWARD. At the London International Wine
are getting along – as can be seen from the at-
life: The political poet and singer, who vo-
took charge of the family firm at the early
& Spirits Fair on May 18 2005, Kuehne +
tached photo of Gary Black, Regional Director,
luntarily settled in East Germany in 1953,
age of 29 and who has since then braved
Nagel was awarded ‘Best Logistics Com-
Northern Region and Joe Hanlon, Branch Ma-
was later banned from performing in pu-
many ups and downs and turned Kuehne
pany’ by “Drinks Business Magazine”.
nager, Glasgow (formerly Wm. Martin) visit-
blic for thirteen years because of his criti-
+ Nagel into a successful logistics com-
ing the Glengoyne Distillery.
cism of state policy. Biermann was even-
pany operating on a global scale.

www.kuehne-nagel.com