ECG - The Association of European Vehicle Logistics, Diamant Building, Bd. Reyers 80, 1030 Brussels,

Tel: +32-(0)2-706- 8280, Fax: + 32-(0)2-706-8281, www.ecgassociation.eu

ECG – The Association of European Vehicle Logistics Issue 12.32, 13th

– 17th

August 2012

CONTENTS NEWS FROM BRUSSELS 2

ECG publishes updated briefing report on the “non-standard” fuel tank issue in Germany 2 EC launches consultation on Road User Charging 2 Linking minimum tax rates with energy and CO2 still proving difficult 2

AUTOMOTIVE INDUSTRY 3

Mitsubishi stops shipments of i-MiEV to PSA 3 Phantom car sales in Germany show extent of European debt crisis 3 Mercedes wants to double production in Hungary, report says 5

EUROPE 5

BLG automotive centre re-certified 5

ACL books innovative con-ro vessels 5 DB doubles Poland-UK service 6 Stobart get takeover go-ahead 6 Sweden enforces EU truck weights and dimensions 7 Drivers must go to prison for breaking drivers' hours rules, warns RHA 7 Caterpillar Logistics appoints new CEO 7 Gold medal legacy for British logistics 8

REST OF THE WORLD 8

Mercedes US turns to M-Class kit exports for Asia 8 Strike action hits Korean carmakers 9 Toyota to set up logistics centre in Nairobi 9

PRESS RELEASES 9

New ITF Secretary-General takes office 9

ECG – The Association of European Vehicle Logistics No. 11/ 14-18 March 2012

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ECG - The Association of European Vehicle Logistics, Diamant Building, Bd. Reyers 80, 1030 Brussels,

Tel: +32-(0)2-706- 8280, Fax: + 32-(0)2-706-8281, www.ecgassociation.eu

2

NEWS FROM BRUSSELS

ECG publishes updated briefing report on the “non-standard” fuel tank issue in Germany (Source: ECG, 17

th August 2012) ECG has updated its latest Briefing Report ‘Car

transporters operating in Germany – “Non-standard” fuel tank issue’, following new information it has received that German-registered vehicle transporters have also been stopped by German customs authorities over the issue of “importing” fuel in “non-standard” fuel tanks. ECG continues to follow this matter as a high priority for its members, and a meeting with the relevant Directorate-General of the European Commission is planned next week. In this regard, ECG members are requested to continue sending the Secretariat any information and paperwork they have encountered on the issue. The updated Briefing Report can be found on: http://www.ecgassociation.eu/PublicationsReports/ECGPositionandBriefingPapers.aspx

EC launches consultation on Road User Charging (Source: ECG & EC, 10

th August 2012) The European Commission DG MOVE

has launched a new public consultation on the charging of the use of road transport infrastructure. Questionnaires should be returned by 4 November 2012 at the very latest. However, stakeholders are warmly invited to submit their contribution as early as possible to facilitate the analysis of the answers. This public consultation is part of the preparatory work of the European Commission's services to explore the scope for possible new European Commission initiatives on road charging along the lines outlined in the 2011 White Paper on Transport. Stakeholders can choose between answering a short or a long version of the questionnaire. The long questionnaire contains 56, mainly multiple choice questions, and touches upon all the details of the identified problems. In the short questionnaire, the 16 retained questions have been chosen in a way to allow respondents to give their opinion on the main topics of the consultation, without entering into the technical details. As ECG has received a direct request to participate, it will start preparing its contribution and strongly encourages its members to submit their individual responses at their earliest convenience (while sending a copy to the Secretariat in order to contribute to ECG’s response)! In order to participate in this consultation, as well as access all relevant documents, please see: http://ec.europa.eu/transport/road/consultations/2012-11-04-roadcharging_en.htm

Linking minimum tax rates with energy and CO2 still proving difficult (Source: Transport & Environment, 19

th July 2012) The idea of making fuel tax in

Europe relate to a fuel’s energy and carbon dioxide content is still struggling to get into the EU Energy Tax Directive. In June EU finance ministers moved closer to approving a new structure for minimum tax rates for fuels, but most member states opposed any system that would force them to make diesel more expensive than petrol. The idea of linking minimum tax rates to energy and CO2 content has been largely accepted. Poland is strongly against any mention of CO2 emissions, and fiscal matters can only be decided at EU level on a unanimous vote, but the other 26 member states seem to agree on the principle. The sticking point is that if all member states would have to use the same tax rate for CO2-emissions and energy content for all fuels (known as ‘proportionality’ or ‘technical neutrality’), diesel would have to be taxed more heavily than petrol. Diesel has traditionally been cheaper than petrol in most EU member states, and a number of national budgets depend heavily on revenue that might decrease if diesel taxes went up. Ministers therefore approved the principle of basing minimum tax rates on CO2 and energy, but these rates will still be set per litre of fuel or per tonne

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ECG - The Association of European Vehicle Logistics, Diamant Building, Bd. Reyers 80, 1030 Brussels,

Tel: +32-(0)2-706- 8280, Fax: + 32-(0)2-706-8281, www.ecgassociation.eu

3

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transported, and not, as proposed by the Commission, per unit of CO2 emitted or energy used. Consequently, the minimum tax for diesel will probably be set at a higher level than for petrol, but member states which apply taxes above the minimum levels may continue to tax diesel less strictly than petrol if they wish. T&E policy officer Magnus Nilsson said: ‘What’s crucial now is to get the diesel minimum as high as possible to counteract fuel tourism and thereby make it easier for “willing” member states to raise taxes on both diesel and petrol. That’s the quickest and smartest way to reduce both CO2 emissions and budget deficits. It also shouldn’t lead to a drop in sales of diesel vehicles, as experience from Great Britain has shown.’

AUTOMOTIVE INDUSTRY

Mitsubishi stops shipments of i-MiEV to PSA (Source: Automotive Logistics News, 15

th - 21

stAugust 2012) Mitsubishi Motors

has stopped shipments of its i-MiEV electric vehicle to French carmaker PSA Peugeot Citroën. A spokesman for PSA said that the halt was temporary and put in place to “adjust stocks”. The French carmaker is now believed to have more than 4,400 of the vehicles held in unsold inventory. The vehicles are shipped as finished vehicle from Mitsubishi’s facility in Mizushima, Japan and are sold in Europe as the iOn Peugeot and Citroën C-Zero. There were 6,000 orders for them between December 2010 and December 2011 according to PSA, with around a further 600 sold this year, but Mitsubishi has assembled almost 11,000 of the vehicles for the French carmaker, leaving it with excess stock. The initial agreement was for Mitsubishi to supply 100,000 of the vehicles, while it has produced 28,000 i-MiEVs in Japan since 2009. One reason for the sluggish sales could be the high retail price of the vehicles, which start at around €30,000 ($37,000). The other, according to a recent report in The Nikkei, is the general slump in European sales that has led the carmaker to review its tie-up with PSA as it considers the impact on its own business. This calls into question how temporary the stop in Mitsubishi’s supply to PSA really is. According to the report, it is not just Mitsubishi that is halting existing supply arrangements. Mazda and Isuzu are also said to be calling off joint development projects and procurement deals with partners in Europe as a result of the region’s debt problems. As well as Mitsubishi’s halt in EV supply to PSA, Mazda will switch from using small diesel engines from the French carmaker and make its own when the vehicles go through the next remodelling. Isuzu is also reported to be halting development of a next-generation diesel engine with Opel and questions are being asked about the future of the joint venture the companies have in Tychy, Poland, although this is unconfirmed. A spokesman for Opel said that the company had already announced it was replacing the core of its current engine portfolio with a new range of petrol and diesel versions from 2013. “As planned, a new diesel engine family will replace the 1.7 diesel out of the GM/Isuzu joint venture in Poland,” he said. “No further decisions have been taken concerning the joint venture with Isuzu, i.e. the plant in Tychy.” He went onto say that this was part of a major new powertrain offensive at Opel that will see the company invests billions of Euros up to 2016, including the launch of three new engine families over the next 18 months.

Phantom car sales in Germany show extent of European debt crisis (Source: Automotive News Europe, 17

th August 2012) Germany, Europe's largest

car market, has managed to buck the trend for falling new-car sales in Europe this year. In the first six months, the market grew 0.7% in comparison with a 20% decline in Italy and a 14% fall in France, according to industry association ACEA, which predicts that car sales in the European Union will fall this year to the lowest

ECG - The Association of European Vehicle Logistics, Diamant Building, Bd. Reyers 80, 1030 Brussels,

Tel: +32-(0)2-706- 8280, Fax: + 32-(0)2-706-8281, www.ecgassociation.eu

4

level since 1995. But the German market isn't as strong as it looks. With the debt crisis suffocating car demand in other markets, automakers are pushing for sales in Europe's biggest economy regardless of whether customers are really interested in buying. In June, 87,454 vehicles were registered to dealers and carmakers, rather than consumers, representing 29% of the market, according to data from German auto-dealer group ZDK. These so-called self-registrations totalled 479,385 in the first half, an 11% jump from a year earlier. Discount 'bloodbath' To get self-registered vehicles off dealer lots, many are quickly sold as zero-kilometre used cars at discounts of more than 20%, according to Ferdinand Dudenhoeffer, director of the Centre for Automotive Research at the University of Duisburg-Essen. These phantom sales reflect the pressure to cut prices that's spread from southern Europe to stronger markets such as Germany and the UK. "It's a bloodbath from a discount point of view," said Andy Palmer, executive vice president for global planning at Nissan. "We work in an industry that needs volume -- it needs to move metal -- so manufacturers discount." Even premium carmaker BMW is feeling the pressure. Despite the fact the German carmaker targets traditionally recession-resistant wealthier customers and has forecast record sales this year after introducing a revamped 3-series sedan in February, it's not hard to find a bargain on a new BMW. Targeting Germany The car Web site mobile.de has dozens of offers from Italy, such as a latest-generation BMW 316d listed this week by a dealer in the northern town of Tavagnacco for 28,400 Euros ($34,900), 16% below the German sticker price. And it's not uncommon for customers to walk into German showrooms brandishing online quotes from abroad, demanding that salesmen meet their prices. Werner Entenmann, who runs a BMW dealership in Germany's wealthy southwest, has long made a comfortable living selling luxury sedans to well-heeled Germans at or near list price. This summer, more buyers are bargaining. "Every day customers are coming to our showroom with offers from other brands or other BMW dealers," said Entenmann, whose Autohaus Entenmann near Stuttgart sells about 2,200 cars a year. "This is part of our daily routine." Profits, he said, are down as the discounts eat into margins. And BMW isn't the only premium carmaker being heavily discounted. A dealer in Rome listed a Mercedes-Benz C200 CDI wagon with automatic transmission, leather seats and alloy wheels on mobile.de for 33,499 Euros, 22% off the German list price. With more Germans seeking bargains, average new-car rebates in Germany jumped to 12% of the sticker price in July, the highest rate since at least August 2010, according to trade publication Autohaus PulsSchlag. Italy's Fiat had the steepest discounts in the country with 14.7%, followed by France's PSA/Peugeot-Citroen and Renault both at 14.1% on average. Slowing growth "Everyone is chasing the last remaining consumers in Europe, and all the cars that can't be sold somewhere in the south are now being shipped to Germany," said Arndt Ellinghorst, a London-based analyst with Credit Suisse. Automakers have been hit hard by the region's slowdown. The 13-member Euro Stoxx Autos and Parts Index has dropped 6.6% over the past six months, led by a 48% plunge by PSA, which posted a loss of 662m Euros at its auto unit in the first half. BMW declined 15%. 'At all cost' "Many of our competitors are drastically pursuing volume and market share -- to some degree at all cost," said Doug Speck, sales and marketing chief at Volvo Car Corp. While self-registering vehicles boosts sales in the short term, "it's false euphoria," he said. BMW's car prices have slipped 1% to 1.5% on average this year, Chief Financial Officer Friedrich Eichiner said on an Aug. 1 conference call -- though those figures wouldn't include most self-registered vehicles sold at a deep discount. A wagon version of the new 3 series, to be introduced in September, should help the company counter pressure to reduce prices further in Europe, Eichiner said. That may not be enough for Entenmann. The salesman,

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ECG - The Association of European Vehicle Logistics, Diamant Building, Bd. Reyers 80, 1030 Brussels,

Tel: +32-(0)2-706- 8280, Fax: + 32-(0)2-706-8281, www.ecgassociation.eu

5

ECG AGENDA ► ECG closed on 15

th August

– Public Holiday ►The ECG Survey Working Group on 30

th August, in

Brussels ►ECG Board Meeting on 14

th

September, in Italy ►Eastern Regional Meeting 27

th September, in Vilnius,

Lithuania ►ECG Academy Module I, on 10

th - 12

th October, in Prague,

Czech Republic ►ECG Conference on 11

th -

12th

October in Prague, Czech Republic ►ECG closed 1

st & 2

nd

November – Public holidays ►UK & Ireland Regional Meeting on 13

th November, in

Birmingham, UK ► ECG Academy Module II on 4

th - 8

th December (TBC) in

Bremen, Germany ►ECG closed on 24

th

December – 1st

January inclusive ►ECG Spring Congress & General Assembly on 23

rd –

24th

May in Valencia, Spain

who also heads BMW's dealer association in Germany, is considering asking the carmaker to cut prices and ease requirements that dealers buy specified amounts of advertising in local media. "If the situation deteriorates further," he said, "BMW has to help the dealers save costs."

Mercedes wants to double production in Hungary, report says (Source: Automotive News Europe, 16

th August 2012) Mercedes-Benz plans to

expand its car plant in Hungary to double annual production to 300,000 vehicles by 2015, business newspaper Napi Gazdasag said on Thursday, citing three unnamed sources familiar with the matter. Mercedes said in March that in addition to its B-class compact it would also start producing the CLA compact coupe, dubbed the "baby CLS," at the Kecskemet plant starting in 2013. The report said trial production of the coupe had already started at the plant. "Yes, it's true we can expand the production line, but no decision has been taken on this matter," a Daimler spokesman told Reuters when asked about the report. The automaker is seeking to boost volume sales and make the brand more attractive to younger buyers by expanding its premium compact line-up from two current models -- the A class and B class -- to five cars, including the coupe and later an SUV and shooting brake. The Kecskemet plant, southeast of Budapest, started production of Mercedes B-class cars in March 2012. The report said the capacity expansion would cost several tens of billions of Hungarian forints and Daimler, Mercedes' parent company, had already contacted the Hungarian government about the project. Hungary's Economy Ministry said any further expansion plans by car manufacturers would be welcome but declined to comment further. Built at a cost of 800m Euros, the plant has been one of the biggest foreign investments made in Hungary in recent years. Hungary's economy, which is heavily reliant on exports, has slipped into recession in the second quarter and Mercedes and rival Audi's production plants are vital amid depressed domestic demand. In total, Daimler has invested 1.4bn Euros ($1.9bn) to build a new generation of compact premium cars in cars in Hungary, Germany and China.

EUROPE

BLG automotive centre re-certified (Source: transportintelligence.com, 13

th August 2012) BLG Logistics has

announced that the technical centres at its Auto Terminal in Bremerhaven have been re-certified according to the ISO/TS 16949:2009. Previously they had only met the quality and environmental standards in accordance with ISO 9001 and 14001. A company statement said: "Through the more extensive certification BLG wants to further boost confidence in its technical system and process quality – as an extended work bench of the manufacturers and with respect to vehicle finishing work via modifications. The ISO/TS certificate is proof of the highest level of system and process quality." In 2011, a total of 480,000 passenger cars and commercial vehicles of various manufacturers were de-waxed, cleaned and inspected at the technical centres of the Bremerhaven Auto Terminal. PDI (Pre-Delivery Inspection) is supplemented by modifications such as high tech installations and glass roofs.

ACL books innovative con-ro vessels (Source: Automotive Logistics News, 15

th - 21

stAugust 2012) Atlantic Container

Lines, the Grimaldi-owned north-Atlantic ocean forwarder, has signed a contract with Chinese state-owned Hudong-Zhonghua Shipbuilding for the delivery of five container/ro-ro (con-ro) vessels that, when completed by 2015, will be the largest vessels of their kind in the world, according to the company. They are also lauded as being the first of their type ever built and will have a new design by International Maritime Advisors (IMA) of Dragoer, Denmark, that will solve the problem of high ballast on con-ro vessels. The fourth-generation (G4) vessels will

ECG - The Association of European Vehicle Logistics, Diamant Building, Bd. Reyers 80, 1030 Brussels,

Tel: +32-(0)2-706- 8280, Fax: + 32-(0)2-706-8281, www.ecgassociation.eu

6

Events in Brussels

“What reform for the European railway legislation?” by EESC, on 06

th September in Brussels

(http://selectsurvey-gen.eesc.europa.eu/TakeSurvey.aspx?SurveyID=RailwayReform2012) ECG will attend

Urban Transport Conference by EC DG MOVE and CIVITAS, on 17

th September

in Brussels (http://www.civitas.eu/UrbanMobilityConference) ECG will attend

Conference on the European ports policy review by EC DG MOVE, on 25

th – 26

th

September in Brussels (http://www.portsconference2012.eu/home.html) ECG will attend

"TIGER’ strategic perspectives in the light of the future European freight mobility policies", on 27

th September

in Bibliothèque Solvay in Brussels (http://www.tigerproject.eu) ECG will attend

“Connecting Europe” by EC, on 2

nd October in Brussels

ECG will attend

“European Transport Forum” on 16

th October in Brussels

(http://europeantransportforum.eu/home/events/details/11-ETF2012.html) ECG will attend

European Electric Vehicle Congress, on 19

th- 22

nd

November in Brussels (http://www.eevc.eu/)

replace ACL's existing fleet of G3 con-ros operating in the company's transatlantic service. They will be able to carry 3,800 TEUs and provide 28,900 square meters of ro-ro space, with a car capacity of 1,307 vehicles. Con-ro vessels normally stow containers on deck and lighter ro-ro cargo below deck with the result that the denser stowage of containers on top of the vessel means most of the weight rides high on the vessel. This requires a great deal of ballast for stability. IMA has developed the concept of putting all the ro-ro cargo midships, and stowing the containers in cells fore and aft of the ro-ro section. This results in cargo replacing ballast and much more efficient use of vessel space, according to ACL. Bill Kearns, ACL’s executive vice president, noted that the company had been forced to put many of its customers on allocations for years because it wasn’t able to grow with the market. “It will be satisfying to be able to accept all the cargo that our customers offer us, instead of being constrained by space limitations," he said.

DB doubles Poland-UK service (Source: Automotive Logistics News, 15

th - 21

stAugust 2012) DB Schenker Rail

is adding another weekly train to its service between Wroclaw in Poland and London in the UK from October this year. The company has been running one weekly train on the service since November last year but has seen increasing demand from customers across a number of sectors, including the automotive industry. General Motors and Volkswagen are among the carmakers that company provides services for in Poland and its UK customers include Ford, BMW and Jaguar. Starting in October, trains will be leaving Barking, near London, for Poland on Tuesday and Fridays, with departures in the other direction on Tuesdays and Saturdays. The trains need about 50 hours for the route, which is roughly 2,000km long. The new service will help to save around 3,700 truck journeys and over 135,000kms a year on the roads said the company. “This is our response to the increasing demand from customers,” said Alexander Hedderich, chairman of DB Schenker Rail. “We have successfully established a new transport corridor within DB Schenker Rail's pan-European network. At the same time, we are also demonstrating the growing possibilities for long-distance European freight transport, with the shift of goods to environmentally friendly rail freight." High Speed 1 (HS1), which connects the Channel tunnel with London Barking, is the only route in the United Kingdom that permits European loading gauges. This means that the trains can be loaded with European sized curtain-sided swap bodies, which provide an internal height of three metres, allowing two standard pallets to be stacked on top of each other and maximizing the amount of product per train. DB Schenker Rail plans to expand services on the corridor as the market develops. Last month the company announced that it will be providing rail services at the new London Gateway deepsea port and logistics park being developed by DP World, which is due to open in the UK in the fourth quarter of next year. The logistics park, which is 40kms east of London, is heralded as being Europe’s biggest when it opens and is likely to become the UK's busiest rail freight terminal. DB Schenker Rail will operate freight trains over 700 metres in length from London Gateway, amongst the longest in the UK. It will introduce at least four rail freight services a day in and out of the park, subject to volumes, and will serve a range of inland terminals including potential new UK locations. Additional rail freight services will be introduced in the future. The trains will avoid over 4,000 lorry movements per week from the UK roads.

Stobart get takeover go-ahead (Source: multimodal.org.uk, 31

st July 2012) Autologic shareholders have given

their backing to the takeover of the company by Stobart Group. In June, Stobart agreed to buy the car transport specialist in a deal worth £12.4m. The offer price of 20p per share represented a 74% premium on the price of 11.5p immediately before news of the potential deal broke. "Autologic is an excellent fit with our group strategy to expand into complementary service offerings and it will facilitate our entry into the auto-logistics market in a leading position,” Stobart chief

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7

Andrew Tinkler said. “We expect to be able to drive substantial synergies and efficiencies from improved fleet utilisation, vehicle buying and maintenance, which will benefit our customers and drive value for our shareholders. We also see opportunities to expand Autologic's presence in Europe where we have a growing presence.” The deal required approval by Autologic shareholders at a court meeting and general meeting. The vote for the deal represented more than 99% of the shares that voted. As a result of this, the deal is expected to be completed on 9

th August.

Sweden enforces EU truck weights and dimensions (Source: nomegatrucks.eu, 16

th August 2012) The Swedish police now enforce

the EU-wide applicable weights and dimensions for heavy goods vehicles in cross-border traffic. The German transport magazine DVZ reports that violations are being penalized since end of July and inspections are being made at the borders to Denmark and Norway as well as in the ports. The reason for the authorities to step in was a court decision from spring 2011 which now became legally binding. Accordingly the maximum length of trucks in international traffic is limited to 18.75 meters and the weight must not exceed 40 tones. With its decision the Swedish court confirmed the weight and dimensions defined by EU directive 96/53 for cross-border traffic in Europe. In recent time a conflict on the maximum permissible weight and length of trucks in international transport broke out on the EU level [as reported in previous editions of ECG News]. Transport Commissioner Siim Kallas took a u-turn by reinterpreting EU legislation to allow cross-border traffic with mega trucks. By doing so the commissioner drew the wrath of EU parliamentarians from all fractions. The members of parliament see their right of co-decision violated by the reinterpretation of effective law. The conflict culminated in a protest letter by President of the European Parliament Martin Schulz to the Commission’s President José Manuel Barroso objecting to the transport commissioner’s approach.

Drivers must go to prison for breaking drivers' hours rules, warns RHA (Source: Commercialmotor.com, 08

th August 2012) The UK’s Road Haulage

Association (RHA) is calling for tougher action to be taken against truck drivers who falsify their driving records. It urges the use of mandatory prison sentences to deter those who are tempted to cheat – backed by a strong commitment to detect and prosecute offenders through the courts. “Falsifying driving records is planned in advance and is one of the most serious offences in road haulage,” says RHA chief executive Geoff Dunning. “Drivers do it because they can carry on driving for far longer than permitted under EU safety rules, which are designed to protect themselves and others. They are putting lives at risk and they are undermining the livelihoods of drivers who comply with the law.” Dunning adds that the offence appears to be becoming more common, possibly due to increased economic pressures, but more likely because “ineffective enforcement” has increased the temptation to break the law. The RHA is now calling on the government to take the lead on the matter and ensure adequate direction and resourcing is given to Vosa, along with more support from the police and the Magistrates' Association.

Caterpillar Logistics appoints new CEO (Source: transportintelligence.com, 14

th August 2012) Caterpillar Logistics

Services, a provider of third-party logistics solutions to the automotive, industrial, mining, aerospace and defence industries, has announced the appointment of Jos Opdeweegh as CEO. Platinum Equity, a Los Angeles-based private equity firm, recently acquired a majority interest in Caterpillar Logistics Services from Caterpillar Inc. Caterpillar retained a 35% equity stake in the business. A rebranding initiative is underway, and a new corporate name and image will be announced at a later date. "We conducted an international search for a CEO with

ECG Office

Mike Sturgeon, Executive Director T: +32 2 706 8282 Mike.sturgeon@ecgassociation.eu Tom Antonissen

EU Affairs Manager T: +32 2 706 8283 tom.antonissen@ecgassociation.eu

Gabriela Caraman

Communications & Events Officer T: +32 2 706 8279 gabriela.caraman@ecgassociation.eu

Davide De Bernardin

ECG Survey Project Co-ordinator

T: +32 2 706 8285 temp@ecgassociation.eu

ECG - The Association of European Vehicle Logistics, Diamant Building, Bd. Reyers 80, 1030 Brussels,

Tel: +32-(0)2-706- 8280, Fax: + 32-(0)2-706-8281, www.ecgassociation.eu

8

the right experience, industry knowledge and proven leadership skills required to establish the business as a new, independent enterprise and who could drive the organisation to new levels of success," said Bryan Kelln, President of Portfolio Operations for Platinum Equity. "Jos distinguished himself from a pool of many capable candidates by demonstrating his passion and knowledge of the business and its customers. He is the perfect fit for the company and its culture. He has an outstanding track record in and outside the industry and he shares our vision for the future of the company." Opdeweegh has extensive experience in logistics, M&A and capital markets including his most recent position as CEO at Americold Realty Trust, one of the world's largest owners and operators of temperature-controlled warehouses for frozen food logistics. Prior to that, he headed up syncreon, a specialised provider of inbound logistics, export packing, transportation and fulfilment services to large automotive and technology customers. "I am excited to join the team and look forward to working with customers, employees and other partners to help the organisation reach its full potential," said Opdeweegh. "I am eager to collaborate with Caterpillar Logistics Services President, Dan Spellman, and the rest of the management team. We have a unique opportunity to harness the strengths, experience and legacy of the past while establishing our own identity and driving the company to even greater levels of success in the future."

Gold medal legacy for British logistics (Source: lloydsloadinglist.com, 16

th August 2012) The UK logistics and transport sector was a clear winner in the

race to ensure the London Olympic Games was a success, says The Chartered Institute of Logistics and Transport in the UK (CILT). The logistics and transport industry was able to demonstrate its ability to operate efficiently, economically and with a highly effective service to industry and consumers; as well as moving record numbers of passengers during a period complicated by increased demand, road and traffic restrictions and heightened security. The CILT says there are certain to be long term benefits resulting from the total Games experience. CILT Chief Executive Steve Agg says: "Logistics, passenger transport and transport planning professionals can all be proud of the way in which London has performed over recent weeks. The challenge now is to ensure that the operational lessons learned during this period are consolidated into future best practice for the benefit of London’s businesses, consumers, road users, residents and visitors. All such best practice learnings should also be applied to other areas of the UK." CILT believes that resident-friendly night deliveries, increased business collaboration, consolidated deliveries and variations to planning and regulatory provisions - which were amongst the initiatives deployed to clear the Olympic hurdles - should be reviewed and assessed for all round effectiveness. Steve Agg said: "Undoubtedly the London Olympic Games have been a big success for the whole of the UK. The logistics and transport sector played a major role in this success and should be congratulated on its vital contribution. Its efficiency and innovation in the face of the many challenges bodes well for future operations. CILT will be working hard to bring together all the lessons we have learned to ensure that they are not lost and the momentum gathered in improving services and infrastructure is maintained. I believe that, for transport and logistics, the Olympics legacy will be lasting and long term."

REST OF THE WORLD

Mercedes US turns to M-Class kit exports for Asia (Source: Automotive Logistics News, 15

th - 21

stAugust 2012) Mercedes-Benz US International has started

exporting SKD kits of its third generation M-Class SUV to India, Indonesia and Thailand from its Tuscaloosa facility in Alabama in a move designed to get around the high costs of exporting the model as a finished vehicle. Each target market has protectionist trade policies that include high tariffs, import fees and customs restrictions, which have made the final sale price of the vehicle in the countries prohibitively expensive. BLG Logistics is assembling the kits for shipment. The logistics provider coordinates the sequencing of vehicle parts for Mercedes' just-in-time vehicle assembly in Tuscaloosa from a separate facility and has now added an 8,400-square metre warehouse for handling kit assembly for the Asian nations. "We are especially proud of this new project as we expand our local services and extend the BLG Group's tradition as provider for Daimler's global SKD/CKD production," said Steven Markham, president of BLG. "The overall process will be operated in very close conjunction with the Daimler SKD group from Sindelfingen," added Markus Schaefer, president of MBUSI. The kits are being transported by rail from Tuscaloosa for ocean forwarding from the port of Savannah. Final assembly will be carried out at Mercedes facilities in Pune, (India), Wanaherang (Indonesia) and Samutprakan (Thailand). Schaefer said this week that the move will increase Mercedes sales in each of the countries, which have been limited by the protectionist trade policies, by making them more competitively priced. A fully assembled M-Class shipped to India costs around $200,000 to buy there because of the tariffs and fees. By comparison, Mercedes can sell the same 2013 M-Class sold in the US for between $47,270 and $96,100. Schaefer said the kits would increase production for Mercedes' US automotive suppliers and result in more jobs for the suppliers and at the

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Tuscaloosa plant, which will build and paint the vehicles’ bodies. Mercedes' assembly plants in India, Indonesia and Thailand already assemble C-Class, E-Class and S-Class vehicles from kits assembled at warehouses near Mercedes plants in other countries. The carmaker's new second generation GL-Class SUV will be added to the SKD exports in May 2013.

Strike action hits Korean carmakers (Source: Automotive Logistics News, 15

th - 21

stAugust 2012) Workers at Hyundai’s car plants in South Korea are

staging a second week of strikes this week over pay and conditions. The company confirmed that up until last Friday, total lost production had reached 23,608 vehicles, equal to 484.6 billion won ($430m). This week’s repeated action could double that figure. The 44,000-member union staged its first strike in four years last month as annual talks over wages stalled. The union is calling for an 8.4% pay rise, a 30% share of the company’s net profit as a bonus and an extension to the retirement age. Workers are also calling for the end of the overnight shift, which they say constitutes a health hazard. “It is regrettable that the labour union has decided to go on strike at this critical point in the talks,” said the company in a statement. “This unfortunate action will hurt the workers, Hyundai customers and the company." A company spokesman said it had no further details to give on the consequences for exports, adding only that it was a “sensitive situation” and it was not in a position to comment. Hyundai’s affiliate Kia Motors has also been affected by strike action. Last week the company was hit by three four-hour strikes and overtime bans that resulted in the loss of 10,766 vehicles and financial loss estimated to be around 1.8 billion won. Kia said it deeply regretted the labour union’s decision to go on a strike, especially when during what it felt was a time for a constructive discussion. “The company is facing very tough economic conditions in both domestic and overseas markets, and the current decision on strike is going to leave us with damage to our operations and confusion amongst our partners and customers,” said a spokesman for the company. There are as yet no reports of disruption to the shipment of vehicles and it is likely the company has prioritised exports, while the ‘lost’ vehicles will be earmarked against domestic sales. No announcement has been made regarding plans to recover that lost production. The spokesman said that further negotiations between the companies and the labour unions is on-going and that a final offer on the dispute is due to be made by the employers. Elsewhere, strike action had also affected GM Korea recently but the company reached a tentative agreement with its labour union this week that promised a pay increase and better working conditions. Union members are expected to vote on the agreement following Wednesday’s national holiday in South Korea. Representatives from the company and the labour union agreed to several conditions including a basic monthly wage increase of 92,000 won ($81), an incentive of 3m Won to be paid upon ratification of the agreement, a 5m won performance bonus to be paid at the end of the year, as well as several improvements in the employment structure. The company and its union have had 25 rounds of wage and collective bargaining negotiations since May 17th but during July partial strike action was responsible for a production loss of about 13,000 vehicles across GM Korea’s plants in Bupyeong, Gunsan and Changwon.

Toyota to set up logistics centre in Nairobi (Source: transportintelligence.com, 17

th August 2012) Local reports suggest automotive manufacturer Toyota has

outlined plans to setup a new Sh1.28bn (€12.3m) logistics hub in Nairobi, Kenya. The Daily Nation stated that the new Nairobi logistics hub will be utilised by 13 countries in sub-Saharan Africa to source vehicles directly from Japan. The company's trading and investment arm Toyota Tsusho Corporation has signed an agreement with the Kenyan Vision 2030 delivery board and will support collaborations with the Kenyan government in the automotive, power and energy, petroleum and mineral resource, environmental infrastructure and agricultural industrialisation fields. According to the chairman of Toyota Kenya Dennis Awori, the hub will also house a technical training centre that will offer both managerial and mechanical courses for prospective employees in the automotive industry. "The project is already underway and will be operational soon. Apart from technical training, the institute will also bring up people with managerial skills that will be useful in the sector."

PRESS RELEASES

New ITF Secretary-General takes office (Source: internationaltransportforum.org, 16

th August 2012) José Viegas, a Portuguese national, has taken office

as Secretary-General of the International Transport Forum (ITF). The International Transport Forum at the OECD is an intergovernmental organisation with 54 member countries that acts as a strategic think tank for global transport policy and organises an annual summit of transport

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ministers. The Forum is housed by the Organisation for Economic Co-Operation and Development (OECD) in Paris. Viegas, who was elected by Ministers from Forum member countries at their summit in May, joins the International Transport Forum from an internationally recognised career as an academic and consultant. As a professor of civil engineering at the University of Lisbon (Portugal) and chairman of TIS.pt, a transport consultancy firm, Viegas has worked in all transport modes and managed collaborative networks across countries and economic sectors to advance better solutions in transport. “I am delighted to come to this job at this moment”, said Viegas upon taking up his duties in Paris this Monday. “There are new and significant challenges for all transport modes across the world. The knowledge production at the Forum and the policy discussions among Ministers are very much relevant to address these challenges. The International Transport Forum faces great opportunities for a strategic reorientation, based on its existing strengths and its expanding membership, to further strengthen its role as the foremost platform for a global dialogue on transport policy. I will work hard to provide engaging and successful leadership in these processes."