Global round up

Germany’s BLG Logistics is reported to have signed a 50:50 joint venture agreement with Beijing-based Cinko Supply Chain Management for Chinese vehicle exports as well as imports of foreign cars to China.

 

Called BLG Cinko Autotec and based in Tianjin, the new venture will begin activity with the establishment of a technical centre for the handling of 38,000 vehicles a year. Plans are for similar joint investments in Guangzhou, Shanghai, Dalian and Lianyungang, Jiangsu province.

 

According to the China Daily the decision follows the surge of exports of German luxury vehicles to China, which started in 2010, as well as German vehicle makers' expanding local production in China.

 

Manfred Kuhr, vice chairman of BLG's executive board is quoted as stating that cooperation with Cinko will focus on helping Chinese homegrown car brands deliver their vehicles to the world and will make full use of BLG facilities to carry Chinese cars and CKD parts.

 

As well as registering the huge potential in Chinese exports the company is also reported to be planning an expansion of its logistics service for inter-city inland transport in China.

 

Groupe CAT has marked the first anniversary of the formation of Suardiaz CAT Shipping Company (SCSC), the joint venture created with Spanish Groupo Suardiaz.

 

Between 1 July 2010 and June this year SCSC has shipped nearly 160,000 vehicles, which CAT said is due to the implementation of logistics schemes that have increased vessel occupancy rates by more than three percentage points.

 

SCSC also recorded more than a 60% reduction in port damage over the year. The joint venture ships vehicles the port of Santander (Spain) to the major European ports of Le Havre (France), Zeebrugge (Belgium), Southampton (UK) and Teesport (UK).

 

In the long term, the company said it wants to expand its shipping fleet, including collaborations with other shipowners, to ensure its presence on the world's seas and oceans.

 

In the meantime, first year results have allowed the company to set performance targets for short-term growth. In 2013, the company intends to route 350,000 vehicles throughout Europe.

 

Volkswagen has reported an increase in global vehicle deliveries for the first seven months of 2011, up more than 14% over the same period last year to 4.75m.

 

In terms of passenger vehicles, VW delivered 2.95m between January and July this year, up from 2.62m over the same period last year, a rise of 12.5%. The company reported particularly strong growth in Central and Eastern Europe (+44%), North America (+22%) and Asia/Pacific (+15.9%) regions. The company delivered more than 538,100 (483,200; +11.4 percent) vehicles to customers in the South America region during the same period, up 11.4%.

 

Volkswagen Commercial Vehicles grew deliveries just over 28% to 303,100 (236,400) units in the period to July. According to the company growth was especially strong in the regions of Central and Eastern Europe (+45.8%), Asia/Pacific (+41.4%) and South America (+36.7%).

 

Following last week’s news that Kerry Logistics had begun work on expanding its Chongqing Logistics Centre, the company has announced the opening of another 20,000m2 logistics centre in Hefei to focus on the growing automotive industry sector in Anhui Province.

 

The company said it has customised the centre to accommodate the increasing number of carmakers in the Hefei region with a broad range of specialist logistics solutions. Services include VMI, sub-assembly and kitting, JIT delivery, milk run transportation and a wide range of value-added services, such as functional testing, CKD or SKD operations.

 

“Demand has been growing from our automotive customers in Hefei for us to deliver specialist automotive logistics services and we have now opened the Kerry Hefei Logistics Centre to enhance our offering to the car manufacturing community in Anhui,” said Edwardo Erni, managing director, Mainland China.

 

The centre is 3.5km from Hefei Luogang International Airport and adjacent to express highways linking to Hening, Hewu, Hehuang and Hexu. There is also a railway connection linking to Hejiu, Heband, Ningxi, Huhanrong and Jingfu.

 

Situated in the Economic and Technological Development Zone, the new logistics centre comprises five warehouses. Four of the warehouses are already in use and a fifth, a 5,000m2 warehouse, will be operational by the end of 2011.

An import licence dispute that has been affecting vehicle and automotive parts exports from Argentina to Brazil could be near resolution following talks between Argentina’s president Christina Fernández de Kirchner and her Brazilian counterpart Dilma Rousseff.

 

In May, Brazil stopped granting non-automatic import licences for products imported to the country, including vehicles and automotive parts, in response to competitive pressures brought about by a strong currency and a flood of vehicle imports from Asia, the US and the EU. The move didn’t target Argentina but was interpreted as a response to similar restrictions that Argentina imposed on Brazilian imports earlier this year.

 

The action led to border delays of up to 60 days and hit shipments for a number of carmakers, including GM, Peugeot-Citroën and Fiat. Argentina sends the majority of its vehicles exports to Brazil.

 

According to GM the situation is now under control and the company is able to guarantee supply of vehicles to its Chevrolet dealerships.

 

A spokesman told Automotive Logistics: “GM Argentina exports between five and eight thousand vehicles per month to Brazil. In spite of these recent trade disputes over the past several months, all precepts delineated in the current automotive trade agreement established between Brazil and Argentina, including 0% import tariff for vehicles that have at least 60% of local content, remain in effect."

 

According to a Dow Jones newswires report, the delay in receiving import permits has now fallen to 10 days.