World - GAC

FRONTLINE RESPONSES TO GLOBAL CHALLENGESctivesBalancing Act - USAThis year, many columnsof newsprint have beendevoted to the USeconomy, pronouncingon what could, should,might or must be done.Bob Bandos, Presidentof GAC USA, prefers to skip the punditryand go straight to the heart of the matter.Possessed of the natural optimismof many Americans, Bandos tends to seethe glass half full. But even he admits that2008 and 2009 were tough years.“We had to make cuts to adjust toreality,” he says. “We are strongly engagedin the tanker agency business and thattook a hit. Refineries on the east coast arerunning at 62% capacity. Across the wholecountry, the sector is at 78%. Spendingis down. People are using their cars less.Public transport use is up 18%. These arenatural responses when people have losttheir jobs.”Now the good newsOn the bright side, GAC USA’s port callnumbers rose last year. True, the ratesreceived on those calls dropped, but thevolume increase helped shore up thecompany’s income.Bandos reckons one reason is shipowners’ and charterers’ caution: “GACis known for its reliability and financialstrength. In hard times, Principals arecareful when choosing a ship agent. Theywant strength, certainty and reliability. Ourcustomer base has also expanded, followingthe closure of some smaller agents whoseclients have come to us.”Some customers trimmed costsby outsourcing to GAC. In one case, adedicated GAC staff member was evenplaced inside the offices of a major clientto ensure smooth handling of their vessels.Banking benefitUS banks are not popular with Americansthese days. They are widely blamed forstarting the whole economic mess. Oneoutcome is that many banks have seentheir loan books diminish and asset booksgrow. They now hold substantial propertyand goods, including cargoes, and theysometimes need help. “We’ve had a boostto our business by working with banks thatare holding cargoes but have no idea whatto do with them,” says Bandos.Stable – and strongerManagers and staff at GAC USA are acollegiate bunch, easy to talk to and alwayswilling to help each other. It’s a stableteam. Finance Manager Bud McNulty says:“Looking at employee turnover, in theAccounting section just one employee hasleft – and that was due to retirement aftermany years of service.”Such stability is enviable. Bandos ispositive: “We have a great team. There’s acommitment. It makes us stronger.”Extending businessUntil recently, GAC USA was a ship agencywith its head office in Philadelphia and 17branches covering the major US ports.Now, it has extended its business reachby launching a project logistics service tocater for the energy and marine sector (seearticle below).“This gives us a broader service baseand lets us integrate our shipping andlogistics capabilities in ways that are usefulto customers,” says Bandos. “We have to beflexible and take our opportunities whenwe find them. These are not easy times, butthe company is holding its balance and it’sgrowing.”Key logisticsservicelaunched in USGAC USA has stepped beyondits traditional ship agencybusiness to launch a majorLogistics initiative basedin Houston. GAC Energy &Marine Services (GEMS) wasestablished in April to provideintegrated project logisticsto the oil & gas and miningindustries.“This puts GAC in the forefront of logistics suppliers in the energy segment and is anatural development of our global project logistics business” says Bob Bandos, Presidentof GAC USA. “It connects with our existing operations in West Africa, NorthernEurope, the Middle East, Central Asia and the Far East.”GEMS operates from a substantial storage facility close to Houston Internationalairport, providing 65,000 sq ft of warehouse space, plus a open air storage area of40,000 sq ft. From here, GEMS provides in-house case packing plus integrated air,ocean, charter and project services, all supported by the latest operating systems andtrack and trace capabilities.“Houston is the hub of the Oil & Gas industry in the US, so for GAC to completeits global project logistics network, we realised that our presence in this strategicmarket was necessary,” adds Bandos. “Besides completing the global picture for GAC,it is clear that a lot of energy projects will emerge in South America which GEMSHouston is ideally positioned to handle.”GEMS will be headed by two vastly experienced people: Mark Moore and YalondaHenderson. Each has more than 20 years in global logistics in locations such as WestAfrica, Middle East, Asia, Indian Sub Continent, South America and Kazakhstan.GEMS will provide services to US-based companies and also to customers inCentral and South America.JULY 2010 | GAC WORLD 11