Panalpina Annual Report 2011

16
Report of the Executive Board
Reporting Regions
Promising achievements in each of the four regions
Europe, Middle East,
Africa and CIS
Key data
Areas: 11
BeNe, Central Europe, Eastern Europe, France, Iberia,
Northern Europe, Northwest Europe, Southwest Europe,
Sub-Saharan, Black and Caspian Sea, Arabian Belt
Net forwarding revenue: CHF 3,171 million
Employees in full-time equivalents: 6,746
Market conditions
A clear deterioration occurred in this heterogeneous
economy. A decline in cargo to move has led to a highly
competitive environment. Customers tried to obtain
financing from forwarders. The Arabian Spring and the
high oil price hurt Middle East market conditions.
Highlights
� Central Europe strengthened its partnerships and
gained new logistics businesses of customers in the
Hi-tech and Fashion verticals.
� Panalpina was awarded with more overland transports
in Continental Europe.
� Norway-based Grieg Logistics was acquired and
successfully integrated.
� In booming Turkey, two offices (Ankara/Bursa) and
a new warehouse in Istanbul opened.
� A new standalone logistics facility was launched in
Didcot, Southeast England.
� The first Panalpina Saudi Arabia office opened in
Dammam.
� Dubai’s role as a distribution hub for Africa grew.
� An office in Murmansk was opened and a state-ofthe-art
warehouse began operations in Moscow. The
area became a front runner in e-customs clearance.
� Panalpina expanded to East Africa and pursued
opportunities in the mining industry along the West
African coast.
Panalpina Annual Report 2011
Asia Pacific
Key data
Areas: 5
India, East Asia, Southeast Asia, Greater China, Oceania
Net forwarding revenue: CHF 1,225 million
Employees in full-time equivalents: 3,601
Market conditions
Asia Pacific faced stagnating EU and US demand
but remains a growth market. The airline industry
experienced turbulence, with soft demand and capacity
oversupply. Ocean freight rates were deteriorating to
unsustainable levels for the carriers. Very competitive
market conditions are forcing continued cost reductions.
Highlights
� The new Intra Asia trucking service began operations,
connecting China with Vietnam, Laos, Thailand,
Malaysia and Singapore.
� Rail-air transport from Urumqi to Europe and sea-air
moves via Los Angeles to Brazil were relaunched.
� New business units were launched in Suzhou,
Wuhan and Chongqing, China. Two regional distribution
centers opened, one in Tianjin and another
in Shanghai. 5,000 square meters of warehouse
capacity came into service in Singapore.
� Three consol services from Shanghai, Ningbo and
Hong Kong to the Jebel Ali hub serving the Middle
East region kicked off.
� Expansion continued in India as three offices opened
and the local sales organization was strengthened.
� Long-time partner Apollo was integrated in Perth,
Australia.
� A stringent subcontractor management concept,
designed to maintain overall margins in all trades and
products, was implemented.