world - Kuehne + Nagel

world 

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MAGAZINE NO.1/06 

Europe 

New organisation strengthens 

market position 

Mission accomplished 

Gas turbines to the Urals 

Kühne + Nagel World Nr. 1/2006 

Kühne+Nagel World 1_2006

2 Contents 

Contents 4 Focus 

New European organisation 

16 Markets & Products 

67 racing cars transported by sea 

18 A legend flies again – Me 262 

20 New trailer block train strengthens rail transport 

21 Logistics for DIY multi in Russia 

Imprint 

Published by 

Kuehne + Nagel International AG 

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Tel. +41 (0)44 786 95 15 

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E-mail: world@kuehne-nagel.com 

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English and German 

Print run 

30,000 

New European organisation 

It was a tremendous effort and it has proved a resounding success: the acquisition of 

the ACR Logistics group in October 2005 which was the biggest corporate takeover in the 

history of Kuehne + Nagel. Its integration into the Kuehne + Nagel organisational structure 

and the continuation of the company’s growth strategy were the decisive factors for the 

introduction of the new European organisation. 

22 Hotel logistics in the Indian Ocean 

24 Gas turbines to the Urals 

26 Inside 

On a clear course for success 

28 Round the World 

30 People & News 

Kuehne + Nagel World No. 1/2006

Editorial 

3 

Dear 

Readers 

One of the cornerstones of Kuehne + Nagel’s success is the company’s strong 

presence in all the world’s major economic regions – a basic precondition when it 

comes to supporting our customers with integrated logistics services within the 

framework of their international market strategies, and which at the same time 

allows us to benefit from globalisation and the resultant growth in world trade. 

The coming issues of our Kuehne + Nagel World Magazine will feature the different 

regions, beginning in the present edition with Europe. We have good reason to do so. 

By the acquisition of ACR Logistics our company has substantially strengthened its 

position in contract logistics on the Old Continent. Furthermore, the new structural 

organisation that was introduced on 1 January 2006 creates a platform which allows 

us to consistently implement our growth strategy in this important economic region. 

You can read all about it in this magazine, together with many other fascinating 

reports from the Kuehne + Nagel logistics world. 

I wish you an enjoyable read. 

Yours 

Klaus Herms 

Chief Executive Officer 

PS: We will be pleased to receive your comments on this issue. 

Just send an e-mail to world@kuehne-nagel.com. 


4 Focus 

New European 

It was a tremendous effort and it has proved a resounding success: the acquisition of the ACR Logistics 

group in October 2005 which was the biggest corporate takeover in the history of Kuehne + Nagel. 

Its integration into the Kuehne + Nagel organisational structure and the continuation of the company’s 

Northwest Region 

Countries: 

Headoffice: 

Denmark, Finland, Ireland, Norway, 

Sweden, UK 

London 

Locations: 120 

Warehouse space: 

792,000 sqm 

Southwest Region 

Countries: 

Headoffice: 

Belgium, France, Greece, Italy, 

Luxembourg, Malta, the Netherlands, 

Portugal, Spain 

Paris 

Locations: 160 


2.4 million sqm 


Focus 

5 

organisation 

growth strategy were the decisive factors for the introduction of the new European organisation. 

This restructuring strengthens Kuehne + Nagel’s position and creates the platform that permits a 

consistent implementation of the corporate strategy in this important economic region. 

Northeast Region 

Countries: 

Headoffice: 

Locations: 40 


Belarus, Bulgaria, Estonia, Latvia, 

Lithuania, Poland, Romania, Russia, 

Ukraine 

Warsaw 

307,000 sqm 

Central Region 

Countries: 

Germany, Switzerland 

Headoffice: Hamburg 

Locations: 99 

Warehouse space: 854,000 sqm 

Southeast Region 

Countries: 

Headoffice: 

Locations: 35 


Albania, Austria, Bosnia, Croatia, 

Czech Republic, Hungary, Macedonia, 

Serbia, Slovakia, Slovenia 

Vienna 

122,000 sqm 


6 Focus 

Southwest 

Region 

The new Southwest Europe Region comprises Belgium, France, 

Greece, Luxembourg, Italy, Malta, the Netherlands, Portugal 

and Spain with more than 160 sites and a warehouse area of 

2.4 million square metres. 

Regional Manager Kuehne + Nagel 

Southwest Europe Xavier Urbain. 

Southwest 

Interview with Xavier Urbain, Regional 

Manager, Kuehne + Nagel Southwest 

Europe. 

World Magazine: 

“Mr Urbain, how do you judge the situation 

in the new Southwest Europe Region after 

the merger of Kuehne + Nagel and ACR, 

and roughly six months after the creation 

of the new European organisation?” 

Xavier Urbain: 

“Since the acquisition of the ACR Logistics 

group, the Southwest Region has 

rapidly established itself as an integral 

part of our Global Logistics Network. 

The integration of the relevant structures 

at the national level will be completed 

within the next few months. Both the 

Kuehne + Nagel and former ACR teams 

did an incredibly good job facilitating 

the seamless creation of the new Southwest 

Region. The transition was a quick 

and smooth one, and day-to-day operations 

continued without disruption. 

Moreover, the Southwest Region has in 

the meantime acquired a substantial 

amount of new business which has further 

expanded Kuehne + Nagel’s market 

position in this economic area. The aims 

are clearly defined: to dynamically 

expand the offering of integrated supply 

chain solutions; to further develop our 

overland transport activities; and to 

offer customers best-in-class solutions 

that are perfectly tailored to the needs 

of their industry. And this in all fields of 

business: sea, air, overland and contract 

logistics.” 


“How are the demands of customers 

changing? In what direction is the market 

moving?” 


“There is a clear trend towards ‘efficiency 

through concentration’. Customers 

are reducing the number of their service 

providers and are working with only one 

or a few selected logistics companies; 

these must be able to provide a com- 


plete range of logistics services. Not only 

with regard to the product portfolio, but 

also in terms of global reach. This 

enables customers to concentrate on 

their core businesses. We, as global fullservice 

providers, are able to offer comprehensive 

and value-creating solutions, 

for instance providing the customer with 

support that already begins in the production 

process.” 


“What developments can we expect in 

your region in the near future?” 


“We will be opening more logistics centres. 

In Belgium, for example, where the 

national Kuehne + Nagel company will 

shortly be celebrating its 50th birthday, 

or in Spain, where we are further expanding 

our state-of-the-art warehouse 

capacity in Mejorada del Campo near 

Madrid. In sea- and airfreight, we want 

to consolidate and strengthen our market 

position across the region, while a 

key objective in overland transport is to 

provide our customers with first and lastmile 

distribution capabilities.” 


“How are the employees in your region 

facing up to the high expectations of the 

customers? And how is the consistently 

high standard of service assured in dayto-day 

operations?” 


“Our employees are highly motivated 

and one hundred percent attuned to our 

customers. The implementation of our 

strategy ultimately brings added value 

for the customer – through an excellent 

quality of service and outstanding logistics 

management. The challenge for us 

all is to behave in a proactive manner. 

Not to wait and see what happens 

but to anticipate the development of 

customers’ needs in order to be able to 

provide innovative solutions, services 

and products in good time.” 


“As a former CEO of ACR, how do you see 

the corporate culture of Kuehne + Nagel?” 


“Extremely dynamic and far-sighted. In 

the world of Kuehne + Nagel there is no 

such thing as standing still. The company 

is on a clear course for expansion, 

as already shown by the figures for the 

first quarter. From the organisational 

viewpoint it is excellently positioned as 

a global player, also thanks to the new 

European regions.” 


8 Focus 

Northwest 

Region 

A growth rate well above the industry average in a sector where 

customers are becoming increasingly demanding: this is the ambitious 

target that Kuehne + Nagel has set for itself in Northwest 

Europe. The manager in charge of this Kuehne + Nagel region gave 

World Magazine a portrait of the market and outlined what plans 

the organisation has been following since the acquisition of ACR. 


Northwest Europe Peter Ulber. 

Interview with Peter Ulber, Regional 

Manager, Kuehne + Nagel Northwest 

Europe. 


“Mr. Ulber, what specific customer requirements 

does Kuehne + Nagel have in the 

Northwest Europe Region?” 

resources between the countries, which 

means that investments can be concentrated 

on business development and the creation 

of comprehensive customer solutions.” 


“What is Kuehne + Nagel’s market position 

in the Northwest Region?” 

Northwest 

Peter Ulber: 

“The economies of the countries making 

up the Northwest Region – Denmark, Finland, 

Ireland, Norway, Sweden and the 

UK – are some of the most developed in 

the world. As a consequence, the logistics 

industry needs to operate on a very high 

and sophisticated level. Customers are 

becoming increasingly demanding and 

expect us to be able to deliver efficient, 

end-to-end IT-based supply chain solutions.” 


“How will you accommodate this?” 

Peter Ulber: 

“The new regional set up allows us to share 

Peter Ulber: 

“Throughout the region, Kuehne + Nagel 

has reached leading positions in the airfreight 

and seafreight businesses, with far 

greater end-to-end international capability 

than many of the other providers in our 

market. In the UK, Kuehne + Nagel has 

established itself as the clear industry 

leader in seafreight and intermodal services, 

being the first company of its kind to 

launch a comprehensive daily container 

rail service. In response to the ever increasing 

volumes and demands of our customers, 

we see rail as an effective alternative 

to complement traditional road 

haulage concepts. Through partnerships 

with the English Welsh and Scottish Rail- 


Focus 

9 

way (EWS) and Logico, we have been able to create a state-of-theart 

intermodal product for the UK market, providing time 

definite, reliable and cost effective solutions for our customers.” 


“How has the ACR acquisition impacted on the Northwest 

Region?” 

Peter Ulber: 

“The acquisition of ACR Logistics has proven to be successful very 

early on, helped by the fact that there were very few implementation 

issues due to the complementary nature of this transaction. 

The main impact has obviously been on the UK and Ireland, 

where we have taken on over 7,500 new employees and 60 sites. 

The contract logistics know-how and management competence 

we have gained through the acquisition ideally complement the 

Kuehne + Nagel traditional strength in international forwarding. 

This significant step in our development ensures our position as 

one of the very few logistics companies with both a true global 

reach and the capability to provide, and integrate, the whole 

range of logistics services.” 


“Are there significant customer wins to report following the ACR 

acquisition?” 

Peter Ulber: 

“We have received tremendous support from our customers who 

recognise the opportunities the acquisition creates for them, and 

have already won several new customers, Scottish & Newcastle 

UK (S&N) being the most significant as it constitutes one of the 

largest logistics contracts in the UK. Under the agreement, 

Kuehne + Nagel will provide all S&N UK’s primary (bulk movements 

from production sites to warehouses and multiple retail 

customers) and secondary (delivery from warehouses and regional 

depots to pubs and licensed premises) distribution activities 

for an initial contract period of ten years. We are naturally 

putting the acquired know-how to good use as a basis for further 

growth in the newly created Kuehne + Nagel owned division, 

KN Drinks Logistics.” 


“Looking ahead, what are the plans for the future?” 

Peter Ulber: 

“We anticipate continuing the vibrant growth we are currently 

enjoying in all business fields. Going forward, one of our main 

areas of focus will be on the expansion of our domestic distribution 

capabilities, to enable the Northwest to become a key region 

in Kuehne + Nagel’s rapidly expanding pan-European overland 

network.”

10 Focus 

Northeast Region 

The Northeast Europe Region, with its headquarters in Warsaw, comprises Belarus, 

Bulgaria, Estonia, Latvia, Lithuania, Poland, Romania, Russia and Ukraine. Most of 

these countries have a dynamically growing economy. In particular Bulgaria, Romania 

and Russia are exerting a strong attraction on foreign investors. 

“Exciting times lie ahead of us,” says Clemens Abt, Regional Manager 

of the Kuehne + Nagel Northeast Europe Region. “The countries 

of the Northeast Region have a logistical potential which we 

intend to exploit. We have built up a strong regional team – both 

with specialists from the various business areas and with professionals 

from the human resources sector. One important point is 

that in order to be successful in these markets it is essential to have 

an excellently trained staff and to be familiar with the peculiarities 

of specific national markets. This equips us to support global customers 

in the realisation of their plans for expansion in the east.” 


Northeast Europe Clemens Abt. 

In Russia, it is now a question of laying the foundations for a 

dynamic development. In this country, Kuehne + Nagel has 

ambitious plans for the future, first and foremost in the fields of 

contract logistics and overland transport. The company already 

has branches in the dynamic economic centres of Moscow and 

St. Petersburg, as well as in Sakhalin in the remote far east of 

the country. Between them, for instance in the up-and-coming 

regions of Samara, Rostov-on-Don or Yekaterinburg, there is still 

a substantial logistics potential which Kuehne + Nagel intends 

to develop. Its declared aim, particularly in the contract logistics 

market, is to gain a position among the top five in Russia 

within the next few years, and later among the top three. 

Northeast 

By the acquisition of ACR, Kuehne + Nagel has stengthened its 

market position in Poland, particularly in contract logistics, 

where it now ranks in third place. Here it is pushing forward 

with the development of services for the Fast Moving Consumer 

Goods sector, and overland transport activities are being 

expanded by organic growth and planned acquisitions. 


Kuehne + Nagel is also represented in the Baltic countries of 

Estonia, Latvia and Lithuania. In Estonia, for instance, it 

recently took over the forwarding company E.M. Trans AS, so 

that customers can now benefit from full access to the 

Kuehne + Nagel overland transport network across the Baltic 

region. 

In Ukraine, Kuehne + Nagel is continuously expanding its 

capacity and already leads the market in contract logistics. 

The company has logistics structures in place to provide international 

customers with optimal support in the realisation of 

their expansion plans. 

Romania, a candidate for EU membership with a population 

of 21 million, is an attractive market. In this country, 

Kuehne + Nagel already has a very strong position in seaand 

airfreight. In the next few years, the focus will be placed 

on the development of contract logistics and overland activities, 

as is the case for Bulgaria, which is now being linked to 

Kuehne + Nagel’s overland transport and distribution 

network. Since many customers from the Automotive and 

Fast Moving Consumer Goods sectors are relocating their 

production to these countries in order to take advantage of 

local conditions, Kuehne + Nagel is focusing on the provision 

of industry-specific logistics services. 

Kuehne + Nagel operates distribution centre for 

Robert Bosch in Poland. 

Kuehne + Nagel was recently commissioned by Robert 

Bosch GmbH to plan and operate a new distribution centre 

in Wroclaw, Poland. This will begin operation in the late 

summer of 2006 and has a storage area of 11,000 sqm. 

Here Kuehne + Nagel will provide a wide range of logistics 

services extending from goods receipt through warehousing 

and order picking to just-in-time order processing and the 

distribution of 25,000 different articles. Bosch customers 

in Poland, the Czech Republic and Slovakia will be supplied 

from this facility. The new centre has good transport connections 

at its location 15 km to the southwest of Wroclaw, 

close to the airport and motorway. 


12 Focus 

Central Europe 

Region 

Germany and Switzerland: Due to their close trade relations, 

Kuehne + Nagel has grouped these two markets into the Central 

Europe Region. Here it is present in a total of 99 locations and 

has a strong market position in all fields of business, which 

it owes among other things to its constant efforts to innovate. 


Central Europe Hans-Georg Brinkmann. 

Particularly for strongly export- or import-oriented markets such as Germany and 

Switzerland, a perfect management of the flows of goods at the highest level is indispensable. 

No wonder that demand for integrated, IT-based logistics solutions is 

growing steadily in both countries. In Central Europe, Kuehne + Nagel can bring the 

whole spectrum of its logistics and value-adding know-how to bear. 

An example: In its textile logistics centre in Münchenstein, Switzerland, Kuehne + Nagel 

coordinates the complete logistics for major industry customers on a one-stop-shop 

basis: from ordering and collection from the manufacturer in the Far East or Europe 

as flat-packed or hanging garments through various processing stages such as 

re-packing, labelling, smoothing in the steam tunnel and placing on hangers to 

distribution to retail outlets all over Switzerland. 

Central 

In Germany, Kuehne + Nagel is attracting particular interest with its innovative 

logistics concept “Supply the Sky” which is specifically tailored to the aviation industry. 

The services, which put the focus on the aircraft in all phases of its lifecycle, 

were awarded the German Logistics Prize in 2005. 

As well as in contract logistics, Kuehne + Nagel is among the market leaders in seaand 

airfreight. In overland transport, through organic and external growth, it has 

established itself as one of the top five providers. Among other things, the company 

owes its good market position to its consistent policy of innovation. 


Focus 

13 

In seafreight, its innovative information logistics products are a 

solid foundation for growth; likewise in airfreight, where three 

new products based on the Cargo 2000 process standards are 

currently being introduced, enabling Kuehne + Nagel to offer 

its customers an unprecedented level of shipment transparency 

and reliability; and in Switzerland, the company was recently 

elected “Best Innovator” (see page 30 of this magazine). 

With regard to the objectives of Kuehne + Nagel in this region, 

Regional Manager Hans-Georg Brinkmann commented as follows: 

“We intend to further develop our market leadership in 

sea- and airfreight and position ourselves among the top three 

providers in contract logistics and overland transport.” 


14 

Focus 

Southeast Region 

Kuehne + Nagel groups the markets of Albania, Austria, Bosnia, Croatia, the Czech 

Republic, Hungary, Macedonia, Serbia, Slovakia and Slovenia into the Southeast Europe 

Region, where it is present in 35 locations. The regional headquarters is in Vienna. 

In the Southeast Europe Region, 

Kuehne + Nagel is faced with a diversity 

of market conditions and customer 

requirements: 

In markets that are tending towards 

saturation, such as Austria, the Czech 

Republic, Slovakia, Slovenia or Hungary, 

there is growing demand for complex 

and integrated logistics services. In 

Southeast 

Slovakia, for instance, an automotive cluster 

of vehicle makers and component suppliers 

has developed; here Kuehne + Nagel 

supports customers with high-quality, 

added-value logistics solutions which 

are tailored to their needs. 

This contrasts with the situation in the 

Balkan region where growth is just getting 

off the ground and multinational 

corporations are beginning to set up 

sales and distribution subsidiaries. For 

Kuehne + Nagel this offers excellent 

opportunities for supporting customers in 

the establishment and development of 

logistics structures and distribution networks: 

In Croatia, for instance, Kuehne + 

Nagel handles the warehousing logistics 

and distribution activities for a wellknown 

global player in the retail sector. 

It recently extended these operations to 

Serbia, and other neighbouring countries 

are in the pipeline. 

Kuehne + Nagel not only solves logistics 

problems, but also effects the transfer of 

know-how to this growth region. The 

company sends experienced people to 

these countries in order to train local 

staff in its high service standards so that 

it can reliably implement state-of-the-art 

logistics concepts in the local markets. 


Focus 

15 

Three questions to Friedrich Macher, 

Kuehne + Nagel Regional Manager 

Southeast Europe. 


“Mr. Macher, every region presents specific 

challenges of its own. To what do you 

attach special importance in your region?” 

Friedrich Macher: 

“The human resources aspect is particularly 

challenging. Here we support our 

customers with experienced key account 

managers who possess a high level of 

professional and social competence. 

They are intimately acquainted with the 

special needs of the individual industries, 

they are familiar with the cultural 

background and mentality of the customer, 

and take full account of the local 

and regional conditions in the performance 

of their daily work.” 

week. This environment-friendly service 

relieves roads and ports of a substantial 

traffic load. 1,000 container block trains 

were operated in 2005 alone. And with 

the opening of a new office in the 

Slovenian port of Koper, we plan to 

extend this multimodal offering to other 

axes.” 


“In general, what strategic aims are 

you pursuing in the Southeast Europe 

Region?” 


Southeast Europe Friedrich Macher. 


“Are there solutions that draw special 

attention to Kuehne + Nagel?” 


“Of course. One example is the pre- and 

on-carriage of seafreight containers by 

rail. Here we offer a special service in 

the form of a block train that links the 

Austrian Danube port of Enns with the 

port of Rotterdam several times per 


“Our aim is to grow faster than the market 

as a whole in the various business 

areas and to increase our market shares. 

With our excellently trained logistics 

and managerial staff, we are ideally 

equipped to guarantee a maximum of 

know-how to our customers, including 

those in countries that are still in the 

emerging stage.” 

15 years of Kuehne + Nagel in the Slovak Republic. 

On 25 May 2006, Kuehne + Nagel Slovakia had two occasions 

to celebrate: the 15th anniversary of the national company’s 

foundation and the opening of the new logistics centre 

in Bratislava with a storage and handling area of 6,000 sqm 

and more than 7,500 pallet slots. This facility serves as an 

interface between national companies and international markets, 

and conforms to the latest environmental and safety 

requirements. The celebrations were attended by numerous 

customers and business partners, representatives of the 

national and local governments and Klaus-Michael Kuehne. 

“We are proud that as a result of our early foundation-laying 

work and the good development of business we have been 

able to continuously expand our range of services and order 

volume,” the Executive Chairman of the Board of Directors of 

Kuehne + Nagel International AG said in his opening speech. 



67 racing cars transported by sea: 

A shipload of 

horsepower. 

An exciting transport assignment 

was the shipment of 

67 racing cars to Dubai. 

Start: the port of Rotterdam. 

Finish: the 5.4 km racing circuit 

of the desert state which was 

the scene of the first 24-hour 

motor race in the Middle East. 

At the end of 2005, Kuehne + Nagel in the Netherlands received an assignment to 

transport 67 racing cars from Rotterdam to Dubai. In close collaboration with the 

local branch office, its task was to bring the power-packed high-tech machines from 

eleven countries punctually to the start of the race, a contest which offered everything 

that makes the hearts of motor racing fans beat faster. 

Kuehne + Nagel consolidated the vehicles including tyres, spare parts and tools in 

Rotterdam and loaded the whole cargo in 42 40-foot containers. In December, the 

high-powered freight then sailed for its destination aboard the MSC Pamela, a giant 

containership with a length of 340 m.

Markets & Products 

17 

On arrival at the racing circuit, the containers were positioned behind the pits of the 

appropriate teams. This ensured that the mechanics and race engineers could unload the 

freight in an optimum manner. 

Milko Tass, General Manager Highspeed 

Logistics with Kuehne + Nagel in the 

Netherlands and a participant in the race. 

“Of course I was not personally 

involved in this exciting transport 

project as a racing driver. But I did 

get first-hand reports of the race 

teams’ reactions to the work of my 

Kuehne + Nagel colleagues. The 

unanimous feedback: an impressive, 

highly professional performance 

from beginning to end.” 

After the ship’s arrival in the port of Jebel Ali at the beginning of January and the 

discharge of the containers, the boxes were to be transported by land to the Dubai 

racing circuit in its spectacular desert setting. But the operation was held up by an 

unforeseen event: all public life in the Gulf state was brought to a standstill by the 

sudden death of Sheikh Maktoum, Vice President and Prime Minister of the United 

Arab Emirates. It was only as a result of intensive negotiations between the local 

Kuehne + Nagel staff and the authorities that the cars could be transported punctually 

to their destination despite the official state mourning; a delay would have 

meant the cancellation of the first 24-hour race in the Middle East. 

To ensure that the freight could be unloaded in an optimum manner and that the 

mechanics and engineers had the whole of their material ready at hand during 

the race, Kuehne + Nagel lined up the containers at the racing circuit behind the 

pits of the appropriate race teams; now there was no obstacle to the eagerly 

awaited 24-hour race in the Dubai desert. 

When the race was over, the return journey was also organised by the Kuehne + Nagel 

team; a repeat performance for the big 24-hour race in the Dubai desert in 2007 is 

not ruled out. 



A legend flies again: 

The “Stormbird”Me 26 

A homecoming journey: Kuehne + Nagel 

transports one of the world’s most famous 

aircraft, the Me 262 jet fighter. 

An icon of the air and a milestone of technology: the Messerschmitt 

Me 262 is one of the epoch-making developments in 

the history of flight. Already planned in 1939 by the brilliant 

aviation pioneer Willy Messerschmitt, the Me 262 became the 

world’s first jet aircraft to go into series production. A total of 

1,433 were built. With its revolutionary swept wings and jet 

engines, the Me 262 was substantially faster than any other 

plane in the world with a speed of 950 km/h. The design and 

configuration of this machine for the first time allowed flight 

at speeds in the high subsonic range. The basic arrangement 

of the Me 262, with engines suspended beneath its slightly 

swept wings, is still adopted in modern aircraft design, particularly 

in the freight and passenger sector. 

Today only a small number of original examples still exist, and 

none of them can be restored to an airworthy condition. This 

gave a team of aircraft enthusiasts from the USA the idea of 

building an airworthy reproduction of the Me 262. 

Not just a copy, but a replica that was identical in every detail 

with the original. They began tackling this project in 1993. 

Kuehne + Nagel transports the valuable Messerschmitt Me 262 jet 

fighter from the USA to Munich. 

An enormous challenge, for original parts were rare and the 

last surviving technical drawings were mostly incomplete. 

So the team set out to find an original Me 262 in a good state 

of preservation. Their search was successful, for in western 

Pennsylvania they tracked down one that had been in the possession 

of the US Navy for 50 years. The owners gave the team 

permission to restore this aircraft and to build exact replicas 

of it. A total of five fully airworthy examples have been built, 

and after this painstaking work of reproduction it is unlikely 

that another Me 262 will be constructed. 



19 

2 lands at Manching. 

One of these aircraft was destined for the Willy Messerschmitt 

Museum at Manching in Bavaria. Kuehne + Nagel was entrusted 

with transporting this valuable machine (insurance value 

more than two million US dollars) from the USA to Munich: 

first by air from Seattle to Luxembourg, and from there by road 

to its destination. Everything from the transit visa for Luxembourg 

to the complex import formalities for Germany was 

handled both quickly and professionally. In Manching, all the 

parts of the aircraft then underwent a thorough inspection by 

EADS, the operator of the museum. Because this was a particularly 

time-consuming procedure, Kuehne + Nagel arranged 

for the delivery of the components to be staggered over a 

period of time. 

Everything went according to plan, and the efforts of all 

concerned were amply rewarded on 25 April 2006 when the 

legendary Me 262 with the registration D-IMTT took to the air 

for the first time. This first flight was followed at the Berlin 

Air Show ILA from May 16 – 21 2006 by a live performance 

before an enthusiastic public. 

The Willy Messerschmitt Museum and Foundation 

The museum at Manching (Germany) houses the bestknown 

developments of Professor Willy Messerschmitt, 

among them the Me 108, Me 109, Me 163, HA 200, HA 

300 and Me 262, some of them in an airworthy condition. 

The collection is a tribute to the life’s work of the aviation 

pioneer, and is managed by EADS and the Messerschmitt 

Foundation. The Foundation was established out of the 

estate of Professor Messerschmitt, and its objectives 

include the encouragement of young entrants to the aviation 

industry and support for cultural projects in southern 

Germany. 

Me 262 – the icon of the air leaves the ground once more. 



New trailer block train strengthens rail transport: 

Intermodal between Sweden 

and Germany. 

Since mid-February 2006, in cooperation with the Dutch firm of Van Dieren Maritime B.V., 

Kuehne + Nagel has been operating a block train for the transport of road trailers between 

Norrköping (Sweden) and Herne/Westphalia (Germany). The slot allocation is shared between 

the two companies. 

The new trailer block train connecting 

the Ruhr area and the Norrköping/Stockholm 

region has met with a good 

response from customers since its inception, 

as it offers numerous advantages: 

a short transit time of 22 hours, cost savings, 

and, above all, protection for the 

environment. The train runs three times 

per week in each direction; there are 

plans to step up the frequency to four 

services per week. 

Slot allocation on the southbound trains 

is coordinated by Kuehne + Nagel in 

Norrköping; in the northbound direction 

this task is handled by the office in 

Travemünde. As the trailer management 

centre for all overland freight to Scandi- 

navia, the team in Travemünde optimises 

the pick-up of the goods, the deployment 

of the trailers and on-carriage to 

the handling terminal at Herne. This 

ensures the efficient transport of the 

freight with the observance of all legal 

requirements as well as the avoidance of 

empty runs. 

Kühne + Nagel World Nr. 1/2006

Road 

21 

Logistics for DIY multi in Russia: 

OBI expands in the east. 

OBI is the leading name in the German and European do-it-yourself market. There are 337 OBI 

outlets in Germany alone, plus another 153 abroad. The company is in a process of dynamic 

growth, and Russia plays a central role in its expansion policy. Kuehne + Nagel provides OBI with 

substantial support as a logistics partner. 

Since November 2003, the Muscovites can simply go to OBI, 

choose from an enormous range of goods and demonstrate 

their skills as amateur craftsmen. Russia’s do-it-yourselfers are 

enthusiastic about the German DIY chain. But before a single 

screw could be sold there was a great deal of work to be done 

by OBI and the Kuehne + Nagel team. In order to stock the 

two Moscow outlets and keep them supplied, it was necessary 

to hold many discussions to find the best and least costly way 

of handling the administrative complexities of Russian customs 

procedures. For Kuehne + Nagel has to deliver the goods 

to the markets without delay precisely at the time when they 

are needed. Each consignment has to be exactly as stated in 

the accompanying documents; the customs authorities could 

object to even the slightest discrepancy and corrections cost 

time and money. 

Initially at Kuehne + Nagel in Hanover, then later in Duisburg 

and most recently in Warsaw, a central platform was established 

in order to optimally bundle all deliveries from Germany 

and the neighbouring countries and consolidate them into 

complete truck loads. The accompanying documents are simultaneously 

coordinated with OBI in Russia, so that every transport 

unit is faultlessly prepared for customs clearance. 

OBI in Russia is a success story: on 30 November 2005, a third 

DIY market was opened in Kazan, naturally with the same 

logistics support from Kuehne + Nagel. This year, the company 

will handle the transport of more than 1,000 truckloads 

of goods for the DIY organisation. 



Hotel logistics in the Indian Ocean: 

Turnkey delivery to the 

Seychelles. 

The Seychelles were the scene of the successful hand-over of a complete, ready-to-occupy mock-up 

luxury villa which had been planned down to the last detail for the well-known hotel operator 

Southern Sun Hotels. In this project, the hotel logistics specialists of Kuehne + Nagel handled the 

complex logistics for the delivery of more than 400 items. 

In collaboration with the South African-based project management 

firm of Bovell Freeman Holley (Pty) Ltd, the complete interior 

of the mock-up villa (furniture, lamps, television, ceiling 

fans, glasses, mirrors, pillows, sheets – even a sun hat) was 

collected from manufacturers on different continents and consolidated. 

With due observance of the individual packing 

instructions and after checking the correctness of all the 

required transport and import documents, the goods were then 

shipped by air and sea to Mahé. A delegate of the logistics firm 

took receipt of the goods and ensured that they passed smoothly 

through customs. Because hardly any local storage facilities 

were available, special importance was attached to the “final 

mile delivery”, the in-time and in-sequence transport of the 

goods from the port to the construction site. Narrow coast 

roads and restricted access proved a real challenge, as did the 

capricious weather, heavy rains and the early onset of darkness. 

Series production of the interiors for the whole luxury resort 

cannot commence until such a mock-up villa has been 

approved by the hotel operators and all their requested modifications 

have been made. Absolute conformity with the time 

schedules for delivery and fitting out is extremely important, 

for the sooner a hotel is opened the better it is for the owners. 

In view of their dependability and efficiency, after the acceptance 

of the mock-up villa Kuehne + Nagel were selected to 

handle the transport of the construction material and all FF&E 

(furniture, fixtures & equipment) and OS&E (operating supplies 

& equipment) for the whole resort. 

In the Indian Ocean, Kuehne + Nagel’s hotel logistics team 

is currently handling further projects for luxury hotels in the 

Maldives and another mock-up villa in Mauritius. 



Gas turbines to the Urals: 

“Mission acco 

A year and a half of preparations 

for a journey through the 

heart of Russia: Relying on their 

know-how, Kuehne + Nagel's 

project logistics experts safely 

moved a giant gas turbine with 

all its accessories from Sweden 

to the Urals. 

The destination of the heavy lift was 

Glazov, a town more than a thousand 

kilometres to the east of Moscow in the 

Republic of Udmurtia, a part of the 

Russian Federation. 

On such out-of-the-way routes, every 

detail of a transport operation must be 

minutely planned. That is why the Kuehne 

+ Nagel team already began the first 

on-the-spot surveys in the spring of 

2004 – eighteen months before the 

transport was due to take place. It was 

planned to carry the turbine by ship 

from Sweden across the Baltic and via 

Russian inland waterways to Perm, the 

river port nearest to the Urals. This was 

a logical choice, for Perm is located on 

the Kama river, a tributary of the Volga. 

From there the load was to be moved 

overland by heavy load transporters to 

Glazov. 

But that was easier said than done. The 

many inspections of the roads between 

Perm and Glazov had confirmed that a 

large part of the cargo could be shipped 

to the port and carried on from there without 

serious problems. But the challenge 

was getting the heavy items across 

the Kama river. The 300 metre-long 

bridge would almost certainly have collapsed 

under the enormous weight of 

the gas turbine, the generator and the 

transport vehicles. There was no way the 

bridge could be reinforced. So what was 

to be done? The solution was to transfer 

the units onto a pontoon barge – a floating 

platform – which was pulled by a tug 

boat to a point further up the Kama river 

where a landing place to roll the 

vehicles with the heavy components off 

the barge via a ramp was prepared. For 

the landing operation the team needed 

a location with a sufficient depth of 

water and firm river banks. In order to 

achieve the required depth it was necessary 

to dredge the river. This was preceded 

by a thorough survey of the river 



25 

mplished” 

Glazov 

bottom by a crew of divers. The ground 

onshore was further reinforced with concrete 

slabs. 

The next challenges awaited the convoy 

when it finally reached the other side of 

the Kama. More than 1,200 kilometres 

of roads had been studied in order to 

identify obstacles like weak bridges, 

high-voltage power lines and low overpasses 

and to find alternative routes. 

Despite the minute planning of the operation, 

it was necessary to reinforce three 

bridges on the way. The local authorities 

cooperated closely in temporarily shutting 

off overhead power lines and closing 

electrified railway lines to ensure the 

free passage of the convoy. In accordance 

with the saying “All’s well that 

ends well”, the heavy loads arrived safely 

and punctually at their destination. 

18 months were required for the planning 

of this operation. The Kuehne + Nagel 

project team in Moscow needed two 

months to obtain all the required permits 

from the Russian authorities, and 

the transport took 35 days – now the gas 

turbine in Glazov is supplying a large 

area with electric power: “Mission 

accomplished”. 


On a clear course 

for success 

This year’s Annual General Meeting of Kuehne + Nagel International 

AG took place against a background of strong growth. 

Due to the increased number of shareholders, the meeting was 

for the first time held not at the company’s headquarters 

in Schindellegi but in the Hotel Seedamm Plaza in Pfäffikon. 

66.7% of the voting shares were represented, and all proposals 

were approved by a clear majority. 

In his address, Klaus-Michael Kuehne, Executive Chairman of the Board of Directors 

of Kuehne + Nagel International AG, expressed his pleasure at the new record 

results that the Kuehne + Nagel Group achieved in 2005. Highlighting the key 

factors contributing to the company’s sustained business success, he mentioned its 

global logistics network, its comprehensive and customer-oriented product portfolio, 

and its corporate culture, which is based on performance orientation, teamwork and 

a passion for success. 


Inside 

27 

The Executive Chairman went on to comment on the rapid 

increase of the company’s share price. Between the last stock 

exchange transaction in October 2005 and the end of April 

2006, the company’s shares gained approximately 52% – a 

confirmation of investors’ growing interest in Kuehne + Nagel. 

Chief Executive Officer Klaus Herms quoted impressive figures 

to illustrate the development of the individual business fields: 

Seafreight volume grew 19.4%, air cargo was up 9.4%, the 

expansion of overland operations was continued, and contract 

logistics organic growth was boosted. The Kuehne + Nagel 

integrated logistics business model, he concluded, is clearly 

proving to be a growth driver. 

The shareholders approved the Annual Report, the Financial 

Statements and the Consolidated Financial Statements for 

2005, and followed the Board of Directors’ recommendation 

to increase the dividend to CHF 5.50 (previous year CHF 4.50). 

The dividend (40.9% of the consolidated net income) was distributed 

on May 8, 2006. The shareholders granted discharge 

to the members of the Board of Directors and the Management 

Board for the business year 2005. 

Dr. Joachim Hausser, Dr. Willy R. Kissling, Klaus-Michael Kuehne, 

Dr. Georg Obermeier and Dr. Thomas Staehelin stood for 

re-election to the Board of Directors and were each confirmed 

for a further three-year term. Professor Dr. Otto Gellert and 

Dr. Alfred Pfeiffer, both long-time members whose respective 

tenures expired with the Annual General Meeting, retired from 

the Board of Directors. Klaus-Michael Kuehne thanked both 

gentlemen for their valuable work. 

The shareholders approved the proposed 1:5 split of the registered 

shares and the corresponding increase in the number of 

shares. At the same time, the nominal value per share relating 

to approved share capital and conditional share capital was 

also lowered from CHF 5 to CHF 1. The Annual General Meeting 

also extended its authorisation of approved capital up to 

a maximum of CHF 20 million by a further two years. This 

measure provides Kuehne + Nagel with the required flexibility 

to finance strategic investments. The next Annual General 

Meeting will be held on May 4, 2007. 

A perfect start to the 2006 business year: the 1 st quarter result 

An impressive growth in turnover of 41.7% to CHF 4,290.7 

million; a significant improvement in the operational result of 

68.7% to CHF 199.1 million: the international Kuehne + Nagel 

group has got off to a very good start in the business year 

2006, exceeding the already strong growth of the previous 

years. Compared with the year-ago period, net earnings were 

up by no less than 46.2%. 

1 ST QUARTER RESULTS – KUEHNE + NAGEL GROUP 

CHF million 2004 2005 2006 

Turnover 2,586.7 3,027.3 4,290.7 

Gross profit 553.0 626.6 1,231.4 

Operational result 105.5 118.0 199.1 

EBT 71.5 97.9 141.9 

Net earnings 48.0 69.5 101.6 


28 Round the World 

Logistics for the cosmodrome 

Baikonur Cosmodrome in Kazakhstan: here, spacecraft and satellites are regularly 

launched by means of Soyuz launch vehicles which are commercialised by the 

European-Russian joint venture Starsem. The company coordinates complex space 

missions, from the provision of the launchers and preparations at the Baikonur 

Cosmodrome to the actual “delivery” of the payload into orbit or into deep space. 

Ten years ago, Kuehne + Nagel received 

its first assignment for the transport of 

astronautical equipment by rail from 

Europe to Kazakhstan. Since 2002, 

Kuehne + Nagel experts in Russia and 

France have been jointly coordinating 

the logistics services for Starsem. 

Activities include the transport of spacecraft, 

satellites and other components 

by air and rail and the transport of propellant 

to Baikonur by sea and rail. 

Kuehne + Nagel also looks after customs 

clearance, the handling of shipping documents 

and a great deal more. Important 

projects for which Kuehne + Nagel has 

provided logistic support in the past 

include the Mars Express of the 

European Space Agency ESA in 2003, 

the Venus Express launch in 2005, and 

the launch of the Galileo satellites in 

2005 and 2006. 

Schindler and Kuehne + Nagel China 

extend their strategic partnership 

The Schindler Group, one of the world’s leading escalator and elevator companies, 

has selected Kuehne + Nagel in China as one of its strategic logistics providers. 

The two global players have concluded a new 5-year agreement that significantly 

extends the scope and depth of their existing business relationship. Kuehne + Nagel 

has been providing end-to-end sea- and airfreight transport for Schindler from production 

facilities in Europe and China to destinations throughout the Asia Pacific 

region since 2003. In the scope of the new contract, Kuehne + Nagel provides additional 

logistics services including customs brokerage, warehousing and distribution. 

The company ensures that consignments from different sources are optimally coordinated 

and consolidated for efficient, just-in-time delivery to identified destinations. 

In addition to the Asia Pacific region, this logistics support for Schindler is now 

extended to projects in the Middle East, Africa, the Americas and Russia. 


Round the World 

29 

Original Swiss post bus on tour in the USA 

The USA is well known as the land of 

unlimited opportunities. But it still 

comes as quite a surprise for an 

American when he encounters an original 

Swiss post bus on the highway. 

The Swiss Roots Project has two objectives: 

to bring Americans of Swiss descent into 

contact with their roots, and to present 

modern Switzerland to the American 

public. 

has been an indispensable means of transport, 

even in the most out-of-the-way 

regions and mountain valleys. 

On the initiative of the Swiss Roots Project 

this bus is on a six-month tour of the 

United States. It will stop on its way at 

official Swiss Roots events in California, 

New York, Pennsylvania, Ohio and 

Wisconsin. Plenty of Swiss entertainment 

will be provided, such as a 30-minute 

crash course in yodelling or the opportunity 

to sample Swiss dishes and wines. 

Kuehne + Nagel organised and sponsored 

the transport of the valuable vintage vehicle 

– the bus was driven by its owner to 

Bremerhaven, from where it was shipped 

on the freighter Falstaff through the 

Panama Canal to Port Hueneme on the 

west coast of the USA. The yellow post bus 

is an important part of everyday life and 

mobility in Switzerland. For 100 years, it 

200,000 pairs of shoes for Pakistan 

In an extraordinary initiative in support of earthquake victims in Pakistan, German shoe retailers collected more than 200,000 

pairs of shoes which they wanted to get to those in need as quickly as possible. 

For each pair of shoes that was handed in, the retailers donated an extra new pair. Kuehne + Nagel Germany volunteered to 

organise the entire logistics and the transport of the goods to the disaster area in Pakistan free of charge. The company took 

care of the collection of the shoes from the shops and the transport of the eleven high-cube containers from the inland port of 

Duisburg via Rotterdam to Karachi. In mid-March, the shoes reached Islamabad, from where they were distributed by a local aid 

organisation. The Pakistan government praised this initiative after the devastating earthquake of 8 October 2005 as a valuable 

humanitarian contribution, and expressed its thanks for the generous donations. 


30 People & News 

Kuehne + Nagel 

wins Swiss 

innovation prize 

A. T. Kearney, one of the world’s leading 

management consultancies, each year 

awards the innovation prize “Best 

Innovator”. In 2006, the Swiss overall 

winner is Kuehne + Nagel. Outstanding 

scores were achieved in all areas of innovation 

management. 

“Swiss companies have made substantial 

advances in the field of innovation 

management.” This was the unanimous 

tenor of the discussion by a panel of 

experts chaired by TV journalist Stephan 

Klapproth following the award of the 

prize. This makes it all the more gratifying 

that Kuehne + Nagel undisputedly 

heads the list of 30 competing Swiss companies. Following an in-depth evaluation, 

the global logistics provider convinced the specialists of A. T. Kearney of its excellent 

innovation strategy as well as its first-class implementation of the innovation 

process throughout the organisation. Commenting on the award, Manfred Tuerks, 

Managing Director of A. T. Kearney, said: “It is decisive to go all the way, from 

generating ideas to market success. At Kuehne + Nagel, the innovation chain is 

firmly and sustainably embedded within the organisation.” 

Innovation has a strong tradition at Kuehne + Nagel. Ongoing improvement and 

adaptation to new market developments have been a characteristic of the company’s 

spirit since its foundation 116 years ago. 

Best-ever DAV graduate joins 

Kuehne + Nagel Luxembourg 

Lufthansa Cargo confers Planet 

Award of Partner Excellence on 

Kuehne + Nagel 

Under the Global Partnership Programme, Lufthansa Cargo 

confers the Planet Award of Partner Excellence on top customers 

who distinguish themselves in particular by their profitability, 

professionalism and loyalty in their business relations. 

The Deutsche Aussenhandels- und Verkehrs-Akademie (DAV) 

in Bremen has trained logistics specialists since 1960. 3,700 

students have passed through its compact course of study 

with a strictly practical orientation. 

In April 2006, Katharina Weber achieved something that nobody 

had done before: she passed the examination with the best 

possible mark of 1.0. Katharina Weber has clear plans for 

the future: to support the Lead Logistics Solutions team of 

Kuehne + Nagel in Luxembourg and to apply the knowledge 

she acquired during her training in the provision of first-class 

logistics services. 

At a ceremonial event, Stefan Lauer, Executive Board Chairman 

of Lufthansa Cargo AG, presented the award to Kuehne + Nagel 

COO Reinhard Lange. Stefan Lauer and Dr. Andreas Otto, 

Lufthansa Cargo Executive Board Member for Marketing and 

Sales, emphasised the excellent collaboration with Kuehne + 

Nagel over the past years and thanked the whole Kuehne + 

Nagel organisation for its confidence in Lufthansa Cargo. 


People & News 

31 

Happy birthday, Hans Merle 

Born in 1926 and in the service of Kuehne + Nagel for the 

whole of his working life from 1949: Mr. Merle was a part of 

the company when it began building up what has now become 

a global logistics network with the establishment of its 

first offices and subsidiaries in Canada and the Middle East. 

Trained as a forwarder and insurance expert, Mr. Merle himself 

worked abroad for Kuehne + Nagel for a number of years and 

has seen a great deal during his career. “There is hardly any part 

of the company that I have not got to know,” he says in retrospect. 

Today, at the age of 80, he is still a part of the company: 

as an advisor to the NACORA group, the insurance broker subsidiary 

of Kuehne + Nagel. Klaus-Michael Kuehne, Executive 

Chairman of the Board of Directors of Kuehne + Nagel International 

AG, insisted on personally presenting him with his 

80th birthday present. 

5th Logistics Days of the 

Kuehne Foundation 

“Logistics as the engine of the globalised 

economy” – this was the motto 

chosen by the Kuehne Foundation for 

the 5th Logistics Days held in 

Schindellegi on 18 May 2006. 

The latest figures of the WTO (World 

Trade Organisation) demonstrate a clear 

fact: world exports are growing substantially 

faster than world economic output. 

Sophisticated logistics systems around 

the globe link raw material sources with 

production sites and customers. Logistics 

knows no frontiers and is increasingly 

becoming the indispensable engine of 

the world economy. At the invitation of 

the President of the Kuehne Foundation, 

Klaus-Michael Kuehne, prominent experts 

from business, politics, trade and research 

gave presentations and participated in 

discussions on this topical theme. Ideas 

as to how companies should adapt to the rapidly growing demands of logistics now 

and in the future were presented to the international audience. In the committed 

panel discussion that followed the talks, guests and speakers took the opportunity to 

examine the whole field in a critical light and to provide new and valuable impulses 

for a whole range of industries. 

The finale to the 5th Logistics Days in the Hotel Panorama in Feusisberg showed that 

the Kuehne Foundation is not devoted solely to business but is also a supporter of the 

arts. At the gala evening, the guests who included the German Ambassador to 

Switzerland Andreas von Stechow were captivated by the sound colours and striking 

pictures presented by the pianist Sheila Arnold and the painter Antonio Màro. 

(zsz) 


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