Connecting China to the Rest of World with a more efficient Logistics Chain

Transcription

1 Connecting China to the Rest of World with a more efficient Logistics Chain Andrew LIAO - Sales Director - GEFCO China Yves SUINAT - Network Sales Steering Director - GEFCO Corporate Chengdu 20th April, 2016

2 22 AGENDA 1. GEFCO Overview 2. China Automotive Market and Outlook 3. 3 KEY SUCCESS FACTORS in Logistics for International Expansion 4. Successful Stories

3 GEFCO at a glance GEFCO employees 4.1 Billion Turnover 25% TOP 10 75% In Europe

4 China Automotive Market Snapshots 2015 IMPORT IMPORT: 1,103,000 EXPORT: 754, Country Vehicle % Japan 263, % US 261, % Germany 219, % UK 97, % ASIA 29% N. AMERI CA 29% EUROP E 42% Country Vehicle % Iran 108, % Vietnam 72, % Venezuela 39, % Chile 39, % S. Korea 55, % Egypt 38, % Mexico 51, % Slovakia 27, % Hungary 19, % Portugal 17, % France 15, % Europe 4% S. America 26% EXPORT Africa 16% N. America 3% Asia 50% Oceania 1% Columbia 31, % Algeria 30, % Peru 26, % Saudi arabia 24, % Bangladesh 24, %

5 GEFCO PRESENTATION FOR AUTOMOTIVE LOGISTICS CHINA CONFERENCE 2016 GEFCO SERVICE OFFER 5 THE RIGHT SOLUTION AT EVERY STAGE OF YOUR SUPPLY CHAIN

6 KEY SUCCESS FACTORS in Logistics for International Expansion 66 Connectivity Extensive network to ensure the door to door solution with full control and visibility Local knowledge Best local knowledge to understand legislative, cultural, Customs regulations to avoid exceptional external disruption in the supply chain Innovation Stay agile and innovative to design new logistics scheme to face new challenges and ensure continuous optimization

7 INTEGRATED NETWORK 77 Guarantees Door-to-Door Solutions GEFCO network covering key automotive markets with more than 400 facilities in 44 countries Major markets : Western Europe Eastern Europe Russia and Central Asia Asia Pacific New markets: Northern Africa Iraq Iran

8 In Europe, North Africa & Middle East 8 8 Top 1 in Automotive Logistics in Europe Started operations in Europe since 1949 Present in more than 18 countries throughout Europe 152 agencies Turnover: 1,8 billion 4,630 employees Region Key Facts Western Europe& North Africa 103 agencies Turnover: 1,021 M employees Central Europe, Balkans and Middle East 49 agencies Turnover: 737 M employees

9 In Russia & Central Asia offices covers Russia, Latvia, Lithuania, Estonia, Belarus, Ukraine and Kazakhstan 500 employees More than 40 destinations served Privileged access to railways operated by RZD Complete range of services, including strong competence in Customs brokerage

10 In China Started operation in China since 1995 Operated as 100% integrated subsidiary since 2008 Present through 4 entities in 11 cities throughout China GEFCO China GEFCO Hong Kong Dongfeng GEFCO (Joint venture, strategic partner for Dongfeng PSA) SMGL (Joint venture, strategic partner for Chang An PSA) Chongqing Beijing Langfang Wuhan Dalian Tianjin Qingdao Shanghai Ningbo 13 Offices 1,350 Employees GEFCO office JV Operation site Liuzhou Xiamen Guangzhou Hong Kong Shenzhen

11 New CN-EU Rail Solutions Offers New Alternative to International Flows 60 Years Preferential access to the 85,200 km of railway operated by RZD (GEFCO majority shareholder) Expertise 255 Agencies Own Network Door-to-Door Solutions Between Europe & China Europe GEFCO Agencies Russia & Central Asia Asia Pacific

12 Existing Services between CN-EU 1212 Cargo types Container types Volumes Transport scope General cargo 20 Dry Block train FOR Non dangerous 40 & 40 HC Dry Wagon groups FOT Ust Luga Finished Vehicles 45 Reefer Single container Door Immingham Rotterdam Duisburg Hamburg Budapest Vitebsk Malas/Brest Moscow Ekaterinburg Kaluga Vorotynsk Samara Atyrau Cherkessk Ashgabat Astana Omsk Almaty Bishkek Dushanbe Novosibirsk Alashankou / Dostyk Khorgos Taishet Urmuqi Irkutsk Chita Zabaikalsk Beijing / Tianjin Zhengzhou Skovorodino Manzhouli Harbin Dalian Khabarovsk Vostochny LCL Including Customs or not Chengdu Wuhan Chongqing Changsha Qingdao Shanghai Xiamen Shenzhen / Guangzhou

13 Customs Expertise eliminates the boundaries ,000 Customs Declarations per year 100+ Countries Operated GEFCO Customs network 200 employees in 41 countries Authorized Economic Operater (AEO) Operational & strategic Customs and tax expertise

14 1414 Highlights Silk Road Solution Multimodal solution for multi-products from Europe to China: CBU, 2 wheelers, parts, general cargo Outbound (vehicle) Collection Distribution Factory Car Dealer Factory Factory Duisburg DIT Duisburg Rail Station Container Loading Chongqing Rail Station Unstuffing Customs clearance Chongqing Bonded Area Storage PDI Warehouse Car Dealer Car Dealer

15 1515 Successful Story Car Exportation Linking China to Central Asia Managing transport of 50 skip trucks (heavy equipment) by road and rail from China via Kazakhstan to Belarus Loading on specially adapted wagon Customs Clearance Services Benefits Railroad Transit Lead-time : 20 days GEFCO expertise in heavy equipment management and logistics engineering for rail flows Innovative system enabling two trucks to be attached to a single wagon in order to ensure optimal and economic transport One Single Contact - GEFCO Multimodal Control Tower in China Khorgos Altynkoul Kolyadichi Minsk Custom Formality Upload to wagon CHINA Kazakhstan Belarus Unload

16 16 Successful Story Car Importation Linking Europe to China Solution Container loading in Germany Delivery and container drop off in Southwest China Routing : Germany, Poland, Belarus, Russia, China Scope of Service Pre-carriage Plant to Duisburg Vehicles stuffing Customs documentation (declaration, transit, clearance) Rail transport Track & Trace Final deliveries to Dealers 180 Number of cars 0% Damage

17 17 Rail vs. Ocean For Import into West China Rail from Europe to China Shanghai Chongqing Guangzhou Rail transport Traditional sea transport Door-to-door : around 65 days Lead time not guaranteed Lower cost Door to door : days Lower cost for the last mile delivery Reduce inventory cost Saving on working capital Balancing flow of train transport further decreases rail freight 85% lower cost than air transport for urgent / special shipments

18 18 Working Capital Benefits Faster transportation lead time will benefit your cash flows management: 6% interest rate (company borrowing) Shorter lead time by 30 days comparing with RORO solution (assumption) Value of Model imported : 60,000 EUR per vehicle (assumption) Reduction of days of stock by 10 days thanks to a quicker replenishment (assumption) (1) Savings of 1,184 EUR per container = 296 EUR per vehicle = 30/365 x 6% x 60,000 (2) Savings of 1,578 EUR per container = 395 EUR per vehicle = (30+10)/365 x 6% x 60,000 Savings/container 3,000 2,500 2,000 1,500 1, Value of cargo/container (K euros) Time saved transit time only

19 19 Loading Method by Rack Optimize the Loading Factor (up to 4 vehicles in a 40 HC) Certified rack system and tested by Bureau Veritas Further reduction of cost to 50% (Loading Factor = 4 vehicles) Elimination of damages

20 We Support You in Connecting China to the Rest of the World